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Company code: 600886 Company abbreviation: SDIC Power

SDIC Power Holdings Co., Ltd.

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Important Notice

I. The Board of Directors, the Supervisory Committee, directors, supervisors and the senior executives of the Company guarantee the annual report does not have any fake record, misleading statement or major omission, and assume individual and joint liabilities for the truthfulness, accuracy and completeness of the report.

II. All directors of the Company are present at the meeting of Board of Directors.

III. ShineWing Certified Public Accountants LLP (Special General Partnership) has provided a standard and unqualified audit report for the Company.

IV. Zhu Jiwei, the leader of the Company, Zhou Changxin, the principal of accounting work and Zhang Song, the person in charge of the accounting firm (accountant officer) declare, "We guarantee the truthfulness, accuracy and completeness of financial accounts in the annual report."

V. Profit distribution plans or plans of share capital increase from accumulation fund in the reporting period adopted by the Board of Directors
The 2021 Profit Distribution Plan approved at the 42nd Meeting of the Company's 11th Board of Directors: The Board of Directors proposes to distribute the cash dividend at RMB 0.1635 per share (tax included), totaling RMB 1,218,758,396.81 (accounting for ca. [50]% of the Company's net profits attributed to shareholders of listed company for the year), based on 7,454,179,797 shares at the end of 2021.

VI. Risk disclosure statement about forward-looking statements
√Applicable □Not applicable
The forward-looking statement of the Company about future development strategies and business plans doesn't constitute any substantive commitment of the Company to investors. Investors shall pay attention to investment risks.

VII. Is there any non-operating capital occupation by the controlling shareholder and its related parties?
No

VIII. Is there any external guarantee violating the specified decision-making procedures?
No

IX. Whether more than half of the directors cannot guarantee the truthfulness, accuracy or completeness of the annual report disclosed by the Company?
No

X. Major risk warning
The Company analyzes the possible impact of relevant risks on the Company's business and development in this report. For details, please refer to (IV) Possible risks in Subsection “VI. Discussion and Analysis on the Future Development of the Company” in Section III Management Discussion and Analysis.

XI. Miscellaneous
□Applicable √Not applicable

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RESPONSIBILITY STATEMENT

For the purposes of the United Kingdom's Financial Conduct Authority's Transparency Rule 4.1.12(3), each director (whose names and functions are listed on page 53 to 56, to the best of his or her knowledge, confirms that:

the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the company and the undertakings included in the consolidation taken as a whole; and
the management report (being this annual report, excluding the financial statements referred to above and the independent auditor's report thereon (starting form page 111) includes a fair review of the development and performance of the business and the position of the company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.

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Contents

Section I Interpretations ................................................................................................................. 5
Section II Company Profile and Key Financial Indicators .............................................................. 7
Section III Management Discussion and Analysis ......................................................................... 12
Section IV Corporate Governance .................................................................................................. 47
Section V Environmental and Social Responsibilities................................................................... 72
Section VI Important Matters .......................................................................................................... 75
Section VII Changes in Shares and Shareholders ............................................................................ 92
Section VIII Preferred Shares .......................................................................................................... 100
Section IX Bonds .......................................................................................................................... 101
Section X Financial Reports ........................................................................................................ 111

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Section I Interpretations

I. Interpretations

For the purpose of this report, the following words shall have the meanings as follows, unless otherwise specified:

Interpretations of common words

CSRC	means China Securities Regulatory Commission
NDRC	means the National Development and Reform Commission of the PRC
SASAC	means the State-owned Assets Supervision and Administration Commission of the State Council
SSE	means Shanghai Stock Exchange
SDIC or controlling shareholder	means State Development & Investment Corp., Ltd.
Company, the Company, or SDIC Power	means SDIC Power Holdings Co., Ltd.
Yalong Hydro	means Yalong River Hydropower Development Co., Ltd.
SDIC Dachaoshan	means SDIC Yunnan Dachaoshan Hydropower Co., Ltd.
SDIC Xiaosanxia	means SDIC Gansu Xiaosanxia Power Co., Ltd.
SDIC Beijiang	means Tianjin SDIC Jinneng Electric Power Co., Ltd.
SDIC Qinzhou	means SDIC Qinzhou Electric Power Co., Ltd.
Huaxia Power	means Xiamen Huaxia International Power Development Co., Ltd.
SDIC Panjiang	means SDIC Panjiang Power Co., Ltd.
SDIC Genting Meizhouwan	means SDIC Genting Meizhouwan Electric Power Co., Ltd.
SDIC New Energy	means SDIC New Energy Investment Co., Ltd.
SDIC Aksay	means SDIC Aksay New Energy Co., Ltd.
SDIC Honghe New Energy	means SDIC New Energy(Honghe) Co., Ltd
Huzhou Xianghui Photovoltaic	means Huzhou Xianghui Photovoltaic Power Generation Co., Ltd.
Toksun Trina Solar	means Toksun Trina Solar Co., Ltd.
Dingbian Angli Photovoltaic	means Dingbian Angli Photovoltaic Technology Co., Ltd.
Jingbian Zhiguang New Energy	means Jingbian Zhiguang New Energy Development Co., Ltd.
Hengneng Solar Power	means Xiangshui Hengneng Solar Power Generation Co., Ltd.
Yongneng Solar Power	means Xiangshui Yongneng Solar Power Generation Co., Ltd.
Guanghui New Energy	means Guyuan County Guanghui New Energy Power Generation Co., Ltd.
Jingke New Energy	means Zhangjiakou Jingke New Energy Co., Ltd.
Gaopai Wind Power	means Hainan Dongfang Gaopai Wind Power Generation Co., Ltd.
SDIC Huanneng	means SDIC Huanneng Electric Power Co., Ltd.
Newsky (China)	means Newsky (China) Environment & Technology Co., Ltd.
Guizhou Newsky	means Guizhou Newsky Environmental & Tech Co., Ltd.
SDIC KingRock	means SDIC KingRock Overseas Investment Management Co., Ltd.
SDIC Gansu	means SDIC Gansu Electricity Sales Co., Ltd.
Xuzhou China Resources	means Xuzhou China Resources Power Co., Ltd.
Tongshan China Resources	means Tongshan China Resources Power Co., Ltd.
Jiangsu Ligang	means Jiangsu Ligang Electric Power Co., Ltd.
Jiangyin Ligang	means Jiangyin Ligang Power Generation Co., Ltd.
Jiangxi Ganneng	means Jiangxi Ganneng Co., Ltd.
GrandBlue Environment	means GrandBlue Environment Co., Ltd.
Jaderock Investment or Jaderock	means Jaderock Investment Singapore Pte. Ltd.
Redrock Investment or Redrock	means Redrock Investment Limited
Red Rock Power or Red Rock	means Red Rock Power Limited
Inch Cape or ICOL	means Inch Cape Offshore Limited
Beatrice or BOWL	means Beatrice Offshore Windfarm Limited
Afton	means Afton Wind Farm Limited
LLPL	means Lestari Listrik Pte. Ltd.
PTLBE	means PT.Lesteri Banten Energi
Installed capacity	means the sum of rated power of power-generating equipment
Total installed capacity	means the sum of installed capacity of a company's power plants and the existing power plants in which the company holds shares or controlling shares
Holding installed capacity	means the sum of installed capacity of a company's power plants and the existing power plants in which the company holds controlling shares
Equity installed capacity	means the sum of installed capacity multiplying by shareholding ratio of a company's power plants and the existing power plants in which the company holds shares or controlling shares
Generated energy	means the quantity of active energy generated from primary energy by generating set through processing, namely, the product of actual active power and actual run time of generator sets
On-grid energy	means the measured electricity generated by power plants and connected to the grid connection points, also known as sold energy
Overall power consumption rate	means the proportion of the power consumption of generating equipment and other power consumption during power generation in the generated energy
Utilization hours	means the operating hours when the generated energy from the generating equipment is converted to rated power within a period. This indicator is used to reflect the utilization of the generating equipment calculated as per its nameplate capacity.
Standard coal	means the ideal coal that generates calorific value of 29,307.6 kJ per kilogram
Coal consumption for power generation	means the standard coal consumption per unit generated energy
Coal consumption for power supply	means the standard coal consumption per unit power supply
GDR	means the global depository receipt

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Section II Company Profile and Key Financial Indicators

I.# Company Information

Company name in Chinese: 国投电力控股股份有限公司
Company abbreviation in Chinese: 国投电力
Company name in English: SDIC Power Holdings Co., Ltd
Company abbreviation in English: SDIC Power
Legal representative of the Company: Zhu Jiwei

II. Contacts and Contact Information

Secretary of the Board of Directors	Securities Affairs Representatives
Name: Yang Lin	Name: Wang Weirong
Correspondence address: Floor 12, Building 147, Xizhimen South St, Xicheng District, Beijing	Correspondence address: Floor 12, Building 147, Xizhimen South St, Xicheng District, Beijing
Telephone: 010-88006378	Telephone: 010-88006378
Fax: 010-88006368	Fax: 010-88006368
E-mail: [email protected]	E-mail: [email protected]

III. Basic Information

Registered address: Room 1108, Floor 11, Building 147, Xizhimen South St, Xicheng District, Beijing
Change in registered address:
Business address: Building 147, Xizhimen South St, Xicheng District, Beijing
Postal code of business address: 100034
Company website: www.sdicpower.com
E-mail: [email protected]

IV. Information Disclosure and Preparation

Place: China Securities News, Shanghai Securities News
Website of the stock exchange where the Company discloses the annual report: www.sse.com.cn
Preparation place for the annual report of the Company: Securities Department, Floor 12, Building 147, Xizhimen South St, Xicheng District, Beijing

V. Company Shares

Share type	Exchange where the shares are listed and traded	Stock abbreviation	Stock code
A-share	Shanghai Stock Exchange	SDIC Power	600886
Hubei Xinghua	London Stock Exchange	SDIC Power Holdings Co., Ltd	SDIC

VI. Other Relevant Information

Accounting firm hired by the Company (domestic)
Name: ShineWing Certified Public Accountants LLP (Special General Partnership)
Address: Block A, Fu Hua Mansion, No. 8, Chaoyangmen Beidajie, Dongcheng District, Beijing
Name of signing CPAs: Ma Chuanjun, Qiu Xin

Sponsor institution performing the continuous supervision responsibility in the reporting period
Name: CITIC Securities Co., Ltd.
Address: CITIC Securities Building, No. 48 Liang Ma Qiao Road, Chaoyang District, Beijing
Name of signing sponsor representatives: Li Ning, Wu Peng
Period of continuous supervision: December 9, 2021 - December 31, 2022

Sponsor institution performing the continuous supervision responsibility in the reporting period
Name: Essence Securities Co. Ltd.
Address: 12/F, SDIC Financial Building, No. 2 Fuchengmen North Street, Xicheng District, Beijing
Name of signing sponsor representatives: Tian Zhu, Wang Yun
Period of continuous supervision: December 9, 2021 - December 31, 2022

VII. Key Accounting Data and Financial Indicators for the Past Three Years

(I) Key accounting data

Unit: yuan Currency: RMB

Key accounting data	2021	2020	Increase or decrease in the current period compared to the same period of the previous year (%)	2019
Operating Revenue	43,681,745,821.77	39,320,364,093.66	11.09	42,433,460,265.79
Net profit attributable to shareholders of the Listed Company	2,436,891,836.54	5,515,627,276.16	-55.82	4,755,460,882.37
Net profit attributable to shareholders of the Listed Company net of non-recurring profit or loss	2,170,763,090.56	4,773,612,581.10	-54.53	4,224,542,774.73
Net cash flows from operating activities	14,631,389,197.15	20,743,217,255.35	-29.46	20,354,175,493.71
	At the end of 2021	At the end of 2020	Increase or decrease at the end of the period as compared to that of the same period of the previous year (%)	At the end of 2019
Net assets attributable to shareholders of the Listed Company	51,455,999,238.26	47,226,653,237.28	8.96	40,382,512,223.65
Total assets	241,369,525,069.05	228,909,369,566.96	5.44	224,721,513,218.80

(II) Key financial indicators

Key financial indicators	2021	2020	Increase or decrease in the current period compared to the same period of the previous year (%)	2019
Basic earnings per share (RMB/share)	0.3202	0.777	-58.79	0.6705
Diluted earnings per share (RMB/share)	0.3202	0.777	-58.79	0.6705
Basic earnings per share net of non-recurring profit or loss (RMB/share)	0.2822	0.6681	-57.76	0.5922
Weighted average ROE (%)	5.34	13.78	Decreased by 8.44%	11.66
Weighted average ROE net of non-recurring profit or loss (%)	4.71	11.85	Decreased by 7.14%	10.3

Explanation for main accounting data and financial indicators of the Company for the last three years as of the end of the reporting period: □Applicable √Not applicable

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

(I) Difference arising from the net profit and net assets attributable to shareholders of the Listed Company in the financial statements disclosed simultaneously pursuant to the International Accounting Standards and the PRC GAAP Standards: □ Applicable √ Not applicable

(II) Difference arising from the net profit and net assets attributable to shareholders of the Listed Company in the financial statements disclosed simultaneously pursuant to the foreign accounting standards and the PRC GAAP Standards: □ Applicable √ Not applicable

(III) Explanation on the difference between domestic and foreign accounting standards: □ Applicable √ Not applicable

IX. Quarterly Key Financial Data in 2021

Unit: yuan Currency: RMB

	Q1 (January to March)	Q2 (April to June)	Q3 (July to September)	Q4 (October to December)
Revenue	9,194,080,949.44	10,094,792,881.73	13,021,307,761.60	11,371,564,229.00
Net profit attributable to shareholders of the Listed Company	1,219,371,458.12	1,117,462,787.65	1,124,439,950.06	-1,024,382,359.29
Net profit attributable to shareholders of the Listed Company net of non-recurring profit or loss	1,111,359,616.95	1,094,889,668.26	1,026,299,821.97	-1,061,786,016.62
Net cash flows from operating activities	3,940,706,102.61	2,657,611,559.82	5,589,999,898.98	2,443,071,635.74

Explanation for discrepancy between quarterly data and those in periodic report disclosed: □Applicable √Not applicable

X. Statement of Non-recurring Profit or Loss

√ Applicable □ Not Applicable

Unit: yuan Currency: RMB

Item of non-recurring profits or losses	Amount for 2021	Amount for 2020	Amount for 2019
Profit and loss of non-current assets disposal	18,641,285.00	589,699,289.81	404,313,997.24
Government subsidies recognized in the current profit and loss, excluding those closely related to the normal operation of the Company and granted on an ongoing basis in standard fixed amount or fixed quota in accordance with government policies and regulations	78,542,732.95	23,046,125.60	70,060,409.12
Income arising from the part when the fair value of net identifiable assets of the investee the enterprise should enjoy when it acquired less than the cost of investment in the subsidiaries, associates and joint ventures	30,078,392.84	76,689,254.42	57,667,997.16
Debt restructuring profits and losses		56,660,000.00
Profits and losses arising from contingencies irrelevant to the Company’s normal business operation	68,079,988.02	8,635,144.30
Profits or losses from changes in the fair value generated from the Company's held-for-trading and derivative financial assets, and held-for-trading and derivative financial liabilities, and investment income from the disposal of held-for-trading and derivative financial assets, held-for-trading and derivative financial liabilities, and other debt investments, except for effective hedging business related to the Company's normal business	72,932,450.97	10,180,830.07	8,732,122.50
Profits and losses acquired from externally entrusted loans	5,724,194.17
Trustee fee income achieved from the entrusted management	141,509.43
Other non-operating revenue and expenses other than the above	99,393,627.72	-21,351,482.98	14,722,979.69
Other profits or losses that conforming to the definition of non-recurring profits and losses	4,846,426.73
Less: effect of income tax	-32,002,989.84	-8,153,666.41	-5,795,532.61
Effect of minority interests (after-tax)	-62,963,180.39	-1,899,837.64	-27,560,519.19
Total	266,128,745.98	742,014,695.06	530,918,107.64

Explanation on defining the non-recurring profits or losses set out in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Securities to the Public - Non-Recurring Profit or Loss as ordinary profits and losses: □ Applicable √ Not applicable

XI. Items Measured by Fair Value

√ Applicable □ Not Applicable

Unit: yuan Currency: RMB

Item	Opening balance	Closing balance	Change for the period	Effect on the profit for the period
Yunwei	9,649,299.15	20,991,457.80	11,342,158.65	11,342,158.65
Exchangeable Bonds of Zheneng	846,220,000.00		-846,220,000.00	-936,980.96
Convertible Bonds of Zhongmin	90,344,000.00		-90,344,000.00	108,555,575.34
Contingent Consideration of ICOL Equity Interest	93,348,150.00	90,367,200.00	-2,980,950.00
Gui'an New Area	52,369,128.00	56,532,144.00	4,163,016.00
Yunnan Coal Chemical Industry Group Co. Ltd.	54,176,223.90	69,005,824.38	14,829,600.48
Hami Industrial (SDIC Hami Industrial Co., Ltd.)	8,471,145.00	8,267,580.00	-203,565.00
National Coal Exchange Co., Ltd.	12,000,000.00	12,000,000.00
Beijing Power Exchange Center Co., Ltd.	6,597,610.00	6,597,610.00
Tianjin Power Exchange Center Co., Ltd.	3,013,249.99	9,541,095.99	6,527,846.00
Sichuan Power Exchange Center Co., Ltd.	1,276,964.92	3,177,388.07	1,900,423.15
Guangxi Power Exchange Center Co., Ltd.	2,607,256.83	2,607,256.83
Zhongmin Energy	191,389,499.08	191,389,499.08
Total	1,177,465,770.96	470,477,056.15	-706,988,714.81	118,960,753.03

XII. Others

□Applicable √Not applicable

Section III Management Discussion and Analysis

I. Discussion and Analysis of Operations

2021 is a year for the Company to fully develop and accelerate transformation.# Annual Report 2021

I. Business Overview

Facing of the sharp rise in commodity prices at domestic and abroad and the continuous tight supply and demand of domestic power, the Company focused on key tasks such as green upgrading, quality and efficiency improvement, promoted high-quality development and achieved a good start in the 14th Five-Year Plan.

(I) Main operating results

In 2021, the Company achieved operating revenue of RMB 43.682 billion, with a year-on-year increase of 11.09%. Affected by the sharp year-on-year increase in coal purchase prices, the Company's net profits attributed to shareholders of listed company was RMB 2.437 billion, with a year-on-year decrease of 55.82%. The basic earnings per share was RMB 0.3202, with a year-on-year decrease of 58.79%. As of the end of 2021, the total assets of the Company were RMB 241.37 billion, an increase of RMB 12.46 billion over the beginning of the period; the asset-liability ratio was 63.52%, with a year-on-year decrease of 0.40 percentage points.

In 2021, the Company's generated energy was 153.865 billion kWh, with a year-on-year increase of 3.61%; the on-grid energy was 149.633 billion kWh, with a year-on-year increase of 3.45%; and the on-grid price was RMB 0.319/kWh, with a year-on-year increase of 5.98%. By the end of 2021, the Company has put into operation, holding an installed capacity of 36.2183 million KW, with a year-on-year increase of 4.3915 million KW. Among them, the installed capacity of clean energy was 24.3375 million KW, accounting for 67.20%, with a year-on-year increase of 4.53 percentage points. In 2021, the Company's newly put into operation/acquired installed capacity were all clean energy.

(II) Business development

Clean energy had increased significantly. During the year, Lianghekou and Yangfanggou hydropower stations were successfully put into operation, with an additional installed capacity of 4 million KW. A large number of new energy green space development indicators were obtained, and the M&A of four new energy enterprises was completed, reserving a number of high-quality new energy projects. By promoting the development and construction of energy base, the Yalong River Hydro-wind-solar Hybrid Base Project was successfully incorporated into the development plan of the national and Sichuan "14th Five-Year Plan", and the development right of the Dachaoshan Wind- solar-hydro Hybrid Base Project was obtained. Business development had entered new regions such as Hainan, Anhui, Tibet and Guangdong.

Breakthroughs had been made in the new energy industry. Jiangsu Yancheng user side energy storage project was connected to the grid, and the Company's first energy storage project was officially put into operation. Through the layout of the pumped hydro storage industry, the Company successfully participated in Liaoning Zhuanghe Pumped Hydro Storage Project and achieved phased results in the development of Jilin Dunhua and other projects.

Thermal power continued to upgrade green and low-carbon. The 600,000 kW and other capacity substitution projects of Huaxia Power Phase I were successfully approved, the construction of No. 1 660,000 kW unit of Qinzhou Phase III was started, and the proportion of large capacity, high parameter, clean and environmentally friendly coal-fired units of the Company was further increased. The approval of the Zhejiang Zhoushan Gas-steam Combined Cycle Emergency Peak-load Regulation Power Project had been actively promoted.

M&A of major overseas projects had been completed. The Company successfully acquired the Batang Toru HEPP with the largest scale under construction in Indonesia and completed the delivery of the onshore wind power project in the UK.

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(III) Operation management

Broadening sources of revenue through multi-channels. By tracking, studying and judging the on- grid price policy of coal-fired power generation, thermal power enterprises strived to maximize the income from electricity sales. The Company actively coordinated the on-grid price of Lianghekou Hydropower Station during the transition period, as well as the priority power generation plan of the Jinguan Power Group, innovatively carried out carbon emission rights trading, and completed the performance of the national carbon market in the first year, achieving income generation; In addition, the Company gave full play to the complementary role of capital market investment to contribute financial income and strategic value.

Comprehensive cost reduction and efficiency increase. The annual coal long-term association contract performance and imported coal procurement increased year-on-year, saving coal procurement costs for the Company. Moreover, the Company tracked the market price and actively carried out contract negotiation to reduce the material procurement cost, and took measures such as prepayment and loan replacement to save financial costs.

Special management and control achieved actual results. The Company had implemented the requirements of loss reducing and controlling, and key loss-making enterprises had successfully ceased to lose and began to turn out a profit. By carrying out leverage reduction through innovative work ideas, the Company's asset-liability ratio was reduced by 0.40 percentage points. The Company launched benchmarking world-class and other special work at all levels to complete various objectives and tasks.

The ability of direct financing continued to improve. Through the efficient completion of the private placement, low-cost funds had been raised for the Company's project construction, operation and development. Moreover, the Company issued RMB 4 billion of renewable corporate bonds at a low-interest rate to save financial expenses, and obtained the approval of "optimizing financing supervision" from the CSRC for the first time to improve the freedom of direct financing. The Social Responsibility Report was prepared according to GRI international standards to promote the Company to be selected into the constituent stocks of the Hang Seng A-share sustainable development enterprise benchmark index, continuously expanding the influence of the capital market.

(IV) Production and infrastructure

A number of major infrastructure projects had been completed. Through innovative project construction management and control, Yangfanggou and Lianghekou hydropower stations were put into operation. In terms of strictly controlling the quality of project construction, Xinjiang Hami Yandun 8A Wind Power Project and Hami Jingxia 5A Wind Power Project won the 2021 China Power Quality Project Award.

Production indicators remained ahead. The Company made solid progress in energy conservation and consumption reduction, and the coal consumption of coal-fired power units had decreased by 0.58 g/kWh on a year-on-year basis, ranking at the forefront of domestic power generation groups. By strengthening the main responsibility of ecological environmental protection, the annual emissions of sulfur dioxide and nitrogen oxides were lower than the value for assessment. In terms of unit benchmarking, SDIC Beijiang, Yunnan Wind Power and other enterprises won honors in the industry competition.

Production management had been continuously improved. The Company improved the management, operation and maintenance level of new energy units by issuing the technical due diligence specification for new M&A projects and revising the design guidelines and maintenance management measures for new energy power generation projects. Moreover, the Company also promoted the improvement of the enterprise's production management level by strengthening the special rectification of production problems and issuing a compilation of typical problems and events.

The ability of technological innovation had been continuously enhanced. The Company increased Annual Report 2021 14 / 111 its efforts in technological innovation, continued to increase its investment in technological R&D, and implemented the rewards for technological innovation achievements.

II. Industry of the Company during the Reporting Period

According to a report of China Electricity Council, the electricity consumption in 2021 was 8.31 trillion kWh throughout the country, increasing by 10.3% on a year-on-year basis. The rapid growth of power consumption was mainly driven by the continuous recovery and development of the domestic economy, the low base in the same period of last year, the rapid growth of foreign trade exports and other factors.

By quarter: The growth rates of electricity consumption in each quarter were 21.2%, 11.8%, 7.6% and 3.3% respectively throughout the country, which was affected by the factors of low base and high base in the same period, the year-on-year growth rate fell quarter by quarter.

By industry: The electricity consumption of the primary, secondary and tertiary industries was 102.3 billion kWh, 5.61 trillion kWh and 1.42 trillion kWh, with 16.4%, 9.1% and 17.8% year-on-year increases respectively; the domestic consumption by urban and rural residents was 1.17 trillion kWh, increasing by 7.3% from a year before.

By province: The year-on-year growth rate of power consumption in 19 provinces in China exceeded 10%, and the year-on-year growth rates of power consumption in Tibet, Qinghai and Hubei were 22.6%, 15.6% and 15.3% respectively; and the 16 provinces of Jiangxi, Sichuan, Fujian, Zhejiang, Guangdong, Chongqing, Shaanxi, Anhui, Hainan, Hunan, Ningxia, Jiangsu, Shanxi, Shanghai, Xinjiang and Guangxi had a year-on-year growth rate of electricity consumption of more than 10%.

By the end of 2021, the national total installed capacity of all sizes was 2.38 billion kW, with a year-on-year increase of 7.9%.# III. Business of the Company during the Reporting Period

(I) Main business of the Company

The business scope of the Company mainly includes the investment, construction, operation and management of power-generation-dominated energy projects, the development and operation of new energy projects and high-tech and environment protection industries, the development and operation of auxiliary products of electric power and the information and consultation service. Among these, the power generation business is a core business of the Company, accounting for more than 95% of the total operating income of the Company. Meanwhile, the Company is developing the relevant business dominated by energy development and power generation to adapt to the reformation of the electric power systems and market changes.

(II) Operation mode of the Company

The Company, as an early enterprise implementing the modern enterprise system, is mainly engaged in the development, construction and operation of various types of energy and power projects in the form of equity investment.

(III) Position of the Company in the industry

In terms of the installation structure, the Company is an integrated electric power listed company dominated by clean energy and supplemented by hydropower, thermal power, wind power and solar power. With the holding installed capacity of hydropower of 20.765 million kW, it is the third-largest listed company concerning the hydropower installed capacity and is an industry leader. The Company is vigorously developing the clean energy business, and the proportion of clean energy installed capacity of the Company will continue to increase steadily from 67.20% at the end of 2021. In terms of business presence, the Company focuses on domestic market and is also seeking overseas business. Its domestic projects are mainly in Sichuan, Tianjin, Fujian, Guangxi, Yunnan, Gansu, Xinjiang, Guizhou, Qinghai, Anhui, Shaanxi, Jiangsu, Zhejiang, Ningxia, Jiangxi, Hainan, Hebei, Liaoning and other provinces. With regard to profitability, despite the intensified market competition and growing energy conservation and environmental protection pressures, the Company enjoys obvious advantages, excellent social and economic benefits and strong risk resistance capacity by virtue of its clean energy-dominated power supply structure.

IV. Analysis of Core Competitiveness during the Reporting Period

√Applicable □Not applicable

(I) Absolute control over Yalong Hydro

Yalong Hydro, of which 52% of the shares are held by the Company, is the only hydropower developer on the Yalong River. It demonstrates strong advantages like reasonable development and unified scheduling. The Yalong River provides abundant water and concentrated river falls, and the loss due to building dams to store water is relative low. Considering its outstanding scale advantages, graded subsidies, consumption and immigration advantages and economic and technical indicators, it's highly profitable to develop hydropower on this river. The installed capacity on the river could be up to 30 GW, ranking No. 3 among the 13 major hydropower bases in China. As of the end of the reporting period, 18.7 GW installed capacity had been put into operation, and 0.5 GW was under construction, of which 3.42 GW was verified and approved.

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

As of the end of December 2021, its installed capacity of clean energy accounted for 67.20% of the Company's existing installed capacity. The installed hydropower capacity increased due to the commissioning of Lianghekou and Yangfanggou hydropower stations, accounting for 57.33% of the total installed capacity; the installed capacity of wind power and solar power increased steadily, reaching 3.5725 million kW, accounting for 9.86% of the total installed capacity. Policy priorities are available for the transmission and consumption of clean energies, so the Company's high proportion of clean energy presents an inherent advantage as low marginal cost. As the marketization extends, the Company shows strong pricing capabilities and guaranteed profitability. The scale of the Company's new energy project development team continues to expand to further meet the development needs of power projects under the development goal of "peak carbon dioxide emissions and carbon neutrality", which is conducive to the Company's improvement of the development ability of new energy projects. The Company's thermal power plants mainly consist of high-parameter, large-scale units, without any unit below 300MW (excluding garbage power projects). Units above one GW account for 67.53% of its controlled thermal power installed capacity. Most of the holding thermal power enterprises are coastal power plants with obvious location advantages. However, affected by the coal price in 2021, the operating efficiency of the thermal power business for the whole year is poor. The Company actively responds to the national energy efficiency and emission reduction policies, and continuously improves its energy efficiency and environmental protection level of thermal power units. It's 100% equipped with desulfurization, denitrification and dust removal devices. 100% of the Company's conventional coal-fired units have ultra-low emission capacity.

(III) Professional manager system established to maximize the Company's management vitality

Through establishing a professional manager system, the Company has strengthened its top management's market awareness and contract awareness, and created an internal atmosphere of unlimited promotion, demotion and performance-oriented salary. Meanwhile, it has cultivated its professional managers to be contract and market-oriented and professionalized, so as to efficiently consummate the corporate governance structure and effectively stimulate the vitality of its executive management of the entire company.

(IV) Mature investment and management experience in the power industry at home and abroad

The Company adheres to its “benefit first" investment management principle, comes out top among peers in profitability, and has built a team of experienced and well-structured management and technical talents in investment, construction and operation management. Moreover, the Company's institutional system encourages management innovation and technical progress, providing a powerful guarantee for its management and business expansion. Since 2012, the Company has been exploring international business, focusing on clean energy and new energy projects with stable returns in mature and stable developed countries, and studying energy projects with development potential and good returns in medium-sized developing countries. The continuous development and growth of overseas investment platforms have accumulated valuable investment experience in international renewable energy projects, brought profit contribution to the Company, and promoted domestic as well as international double-cycle development.# V. Major Operational Particulars during the Reporting Period

In 2021, the operating revenue of the Company was RMB 43,682 million, with a year-on-year increase of 11.09%, and the operating cost was RMB 30,901 million, with a year-on-year increase of 42.54%. As of December 31, 2021, the Company's total assets were RMB 241,370 million, with an increase of RMB 12,460 million over that at the end of the previous period, and the total liabilities were RMB 153,309 million, with an increase of RMB 6,985 million over that at the end of the previous period. At the end of the reporting period, the asset-liability ratio was 63.52%, decreased by 0.40% from the end of the previous period, and the net assets attributable to the shareholders of the listed companies were RMB 51,456 million, increased by 8.96% from the end of the previous period.

(I) Analysis of principal businesses

1. Analysis on Changes of Relevant Items in Income Statement and Cash Flow Statement

Item	Amount of current period	Amount of corresponding period last year	Change (%)
Operating revenue	43,681,745,821.77	39,320,364,093.66	11.09
Cost of sales	30,901,312,574.86	21,679,094,879.33	42.54
Selling expenses	29,285,975.17	27,656,370.98	5.89
Administrative costs	1,306,496,972.12	1,695,092,005.49	-22.92
Finance expenses	31,306,404.81	37,865,006.14	-17.32
R&D expenses	4,291,394,377.81	4,194,460,019.82	2.31
Net cash flows from operating activities	14,631,389,197.15	20,743,217,255.35	-29.46
Net cash flows from Investing activities	-9,088,348,665.18	-10,242,372,523.19	11.27
Net cash flows from financing activities	-6,400,945,979.93	-9,310,207,292.22	31.25

2. Analysis on revenue and costs

In 2021, the operating revenue of the Company was RMB 43,682 million (including revenues from the main business of RMB 43,203 million), with a year-on-year increase of 11.09%, mainly due to the year-on-year increase in on-grid energy. The operating cost was RMB 30,901 million (including costs of the main business of RMB 30,719 million), with a year-on-year increase of 42.54%, mainly due to the significant year-on-year increase in the coal-fired cost.

(1) Performance of principal businesses by industry, by product, by region and by sales model

Unit: RMB 10,000
Currency: RMB

Principal Businesses by Industry

By Industry	Operating Revenue	Cost of sales	Gross profit margin (%)	Increase/decrease in operating revenue from last year (%)	Increase/decrease in the cost of sales from last year (%)	Increase/decrease in the gross profit margin from last year (%)
Power	4,265,301.79	2,971,264.76	30.34	10.08	40.89	Decreased by 15.23%
Miscellaneous	54,982.13	100,585.73	-82.94	30.63	81.73	Decreased by 51.44%

Principal Businesses by Product

By product	Operating Revenue	Cost of sales	Gross profit margin (%)	Increase/decrease in operating revenue from last year (%)	Increase/decrease in the cost of sales from last year (%)	Increase/decrease in the gross profit margin from last year (%)
Power	4,265,301.79	2,971,264.76	30.34	10.08	40.89	Decreased by 15.23%
Miscellaneous	54,982.13	100,585.73	-82.94	30.63	81.73	Decreased by 51.44%

Principal Businesses by Region

By region	Operating Revenue	Cost of sales	Gross profit margin (%)	Increase/decrease in operating revenue from last year (%)	Increase/decrease in the cost of sales from last year (%)	Increase/decrease in the gross profit margin from last year (%)
Sichuan	1,831,057.65	713,142.32	61.05	4.70	17.77	Decreased by 4.32%
Fujian	695,271.44	758,155.50	-9.04	8.23	54.84	Decreased by 32.82%
Guangxi	631,511.89	630,899.25	0.10	37.81	62.42	Decreased by 15.13%
Tianjin	586,805.14	702,251.41	-19.67	6.66	56.01	Decreased by 37.86%
Yunnan	156,230.82	50,479.82	67.69	-13.41	-2.80	Decreased by 3.53%
Gansu	116,390.51	57,276.88	50.79	4.04	-0.35	Increased by 2.16%
Xinjiang	89,165.99	31,460.37	64.72	18.61	8.42	Increased by 3.32%
Guizhou	84,209.28	66,599.44	20.91	11.42	11.14	Increased by 0.2%
Qinghai	18,661.69	9,736.38	47.83	20.36	30.68	Decreased by 4.12%
Shaanxi	17,842.90	6,217.58	65.15	34.11	31.37	Increased by 0.73%
UK	15,952.20	5,656.08	64.54	62.57	27.47	Increased by 9.76%
Jiangsu	14,178.71	5,563.33	60.76	82.66	72.83	Increased by 2.23%
Zhejiang	10,861.00	9,595.43	11.65	3.65	118.32	Decreased by 46.4%
Ningxia	8,457.45	3,771.84	55.40	98.85	57.15	Increased by 11.84%
Thailand	7,997.98	3,499.97	56.24	-35.30	-35.13	Decrease by 0.11%
Hebei	4,323.75	1,779.84	58.84	887.29	1,001.62	Decreased by 4.27%
Indonesia	15,512.33	10,499.72	32.31	-	-	-
Jiangxi	6,592.38	1,813.90	72.48	-	-	-
Anhui	5,690.93	1,901.51	66.59	-	-	-
Hainan	3,569.88	1,549.93	56.58	-	-	-
Total	4,320,283.92	3,071,850.50	28.90	10.31	41.93	Decreased by 15.84%

Description of information on principle businesses by industry, by product and by region

① Description of the principle business by industry and by product
In 2021, revenues from the main business of the Company were RMB 43,202,839,200, with an increase of 10.31% over that in 2020 and a year-on-year decrease of 15.84% in gross profit rate. Among them, the annual electricity revenue was RMB 42,653,017,900, with an increase of 10.08% over that in 2020 and a decrease of 15.23% in gross profit rate. The main reason was that the increase in on-grid energy during this period led to a year-on-year increase in revenue, while the significant increase in coal-fired cost led to a year-on-year decrease in gross profit rate.

② Description of the principle business by region
In 2021, revenues from the main business of Sichuan increased by 4.70% year on year, basically the same as that in the previous year. In 2021, revenues from the main business of Fujian increased by 8.23% year on year and the gross profit rate decreased by 32.82%, mainly due to the increase in thermal power generation and the significant increase in coal-fired cost this year. In 2021, revenues from the main business of Guangxi increased by 37.81% year on year and the gross profit rate decreased by 15.13%, mainly due to the increase in thermal power generation in Guangxi meanwhile the significant increase in coal-fired cost, and the increase of the power generation caused by the operation of WTGs. In 2021, revenues from the main business of Tianjin increased by 6.66% year on year and the gross profit rate decreased by 37.86%, mainly due to the increase in thermal power generation and the significant increase in coal-fired costs this year. In 2021, revenues from the main business of Yunnan decreased by 13.41 year on year, mainly due to the decline of the water flow from the Lancang River and the decrease of on-grid energy in hydropower. In 2021, revenues from the main business of Gansu increased by 4.04% year on year, basically the same as that in the previous year. In 2021, revenues from the main business of Xinjiang increased by 18.61% year on year, mainly due to the year-on-year growth in electricity as a result of good wind resources this year and the impact of unit commissioning in the previous year. In 2021, revenues from the main business of Guizhou increased by 11.42% year on year, mainly because the year-on-year increase in thermal power generation led to the increase in revenue this year. In 2021, revenues from the main business of Qinghai increased by 20.36% year on year, mainly because the units were put into operation last year and came into full play throughout this year. In 2021, revenues from the main business of Shaanxi increased by 34.11% year on year, mainly because some projects in this region were acquired in the second half of last year and came into full play throughout this year. In 2021, revenues from the main business of UK increased by 62.57% year on year, mainly due to the year-on-year increase in revenue impacted by the significant year-on-year increase in electricity prices in the UK. In 2021, revenues from the main business of Jiangsu increased by 82.66% year on year, mainly because the power generation project in this region was acquired in the second half of last year and came into full play throughout this year. In 2021, revenues from the main business of Zhejiang increased by 3.65% year on year, basically the same as that of the previous year. In 2021, revenues from the main business of Ningxia increased by 98.85% year on year, mainly because the units were put into operation last year and came into full play throughout this year. In 2021, revenues from the main business of Thailand decreased by 35.30% year on year, mainly due to the decrease in the settled electricity price in Thailand in this period. In 2021, revenues from the main business of Hebei increased by 887.29% year on year, mainly because the projects in this region were acquired at the end of last year and came into full play throughout this year.# In 2021, the Company added power generation projects in Indonesia, Jiangxi, Anhui, and Hainan through acquisitions.

(2). Analytical statement of production and sales volume
□ Applicable √ Not applicable

(3). Performance of major purchase contracts and sales contracts
√ Applicable □ Not applicable

Performance of major sales contracts signed by the Company as of the reporting period
□ Applicable √ Not applicable

Performance of major purchase contracts signed by the Company as of the reporting period
□ Applicable √ Not applicable

Annual Report 2021 21 / 111

(4) Analysis on Statement of Cost
Unit: RMB 10,000 Currency: RMB

Cost by Industry	Cost components	Amount for the current period	Proportion of amount for the current period in total cost (%)	Amount for the same period last year	Proportion of amount for the same period last year in total cost (%)	Change in the amount for the current period compared with the same period last year (%)	Description
Power	Fuel costs, depreciation costs, employee remuneration, repair costs, material costs, etc.	2,971,264.76	79.23	2,108,950.70	73.79	40.89	Increased cost of coal combustion
Seawater desalination, building materials, heat supply and other industries	Fuel costs, depreciation costs, employee remuneration, repair costs, material costs, etc.	100,585.73	2.68	55,347.57	1.94	81.73

Cost by Product	Cost components	Amount for the current period	Proportion of amount for the current period in total cost (%)	Amount for the same period last year	Proportion of amount for the same period last year in total cost (%)	Change in the amount for the current period compared with the same period last year (%)	Description
Power	Fuel costs, depreciation costs, employee remuneration, repair costs, material costs, etc.	2,971,264.76	79.23	2,108,950.70	73.79	40.89	Increased cost of coal combustion
Seawater desalination, building materials, heat supply and other industries	Fuel costs, depreciation costs, employee remuneration, repair costs, material costs, etc.	100,585.73	2.68	55,347.57	1.94	81.73

(5) Changes in the Scope of Consolidation due to Changes in the Shareholdings of Major Subsidiaries during the Reporting Period
□ Applicable √ Not applicable

(6). Major changes or adjustments in the company's business, products or services during the reporting period
□ Applicable √ Not applicable

Annual Report 2021 22 / 111

Annual Report 2021 23 / 111

(7). Major sales customers and major suppliers

A. Key Customers of the Company
Sales to the Company's top five customers amounted to RMB 35,566,440,300, accounting for 81.42% of the total sales in the year. Among the sales to the top five customers, the sales to related parties amounted to RMB 0, accounting for 0% of the total sales in the year. During the Reporting Period, there were cases in which sales to a single customer exceed 50% of the total, there are new customers among the top five customers, or the Company is heavily dependent on a few customers
□ Applicable √ Not applicable

B. Key Suppliers of the Company
The purchase amount of the top five suppliers was RMB 7,852,140,500, accounting for 38.08% of the total annual purchase amount, among which the purchase amount of related parties was RMB 0, accounting for 0% of the total annual purchase amount. During the Reporting Period, 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
□ Applicable √ Not applicable

Expenses
√ Applicable □ Not applicable
Unit: RMB 10,000

Items	2021	2020	Increase or decrease rate (%)
Selling expenses	2,928.60	2,765.64	5.89
Administrative costs	130,649.70	169,509.20	-22.92
Finance expenses	429,139.44	419,446.00	2.31

Note: The administrative expenses decreased by 22.95% year on year, mainly due to the withdrawal of socialized extraordinary expenses for retired employees in the previous period.

R&D investment
(1) Statement of R&D Investment
√ Applicable □ Not Applicable
Unit: RMB 10,000

	Amount
Expensed R&D investment for the current period	3,130.64
Capitalized R&D investment for the current period	286.53
Total R&D investment	3,417.17
Proportion of total R&D investment in operating revenue (%)	0.08
Proportion of capitalized R&D investment in total R&D investment (%)	8.38

(2) R&D personnel
□ Applicable √ Not applicable

(3) Description
□ Applicable √ Not applicable

Annual Report 2021 24 / 111

(4) Reasons for major changes in the composition of R&D personnel and their impact on the future development of the Company
□ Applicable √ Not applicable

Annual Report 2021 25 / 111

Cash flow
√ Applicable □ Not Applicable
Unit: RMB 10,000

	Items	2021	2020	Year-on-year increase/decrease (%)	Reason for increase or decrease
I.	Cash flows from operating activities
	1. Cash inflow from operating activities	4,711,581.75	4,407,482.09	6.90	Increased revenue
	2. Cash outflow from operating activities	3,248,442.83	2,333,160.36	39.23	Significant increase in cash outflow from operating activities due to significant increase in coal prices
	3. Net cash flows from operating activities	1,463,138.92	2,074,321.73	-29.46
II.	Cash flows from investing activities
	1. Cash inflow from investing activities	205,484.53	308,250.20	-33.34	Part of cash received from disposal of subsidiaries and associates in the previous year
	2. Cash outflow from investing activities	1,114,319.40	1,332,487.46	-16.37	The fixed assets investment in this year decreased compared with that in the previous year
	3. Net cash flows from investing activities	-908,834.87	-1,024,237.26	-11.27
III.	Cash flows from financing activities
	1. Cash inflow from financing activities	5,380,553.87	3,603,838.77	49.30	First, the Company received private placement of capital and issuance of renewable bonds this year
					Second, the cash received from borrowings increased compared with the previous year
	2. Cash outflow from financing activities	6,020,648.47	4,534,859.50	32.76	Cash paid for repayment of debts increased compared with the previous year
	3. Net cash flows from financing activities	-640,094.60	-931,020.73	-31.25
IV.	Net increase in cash and cash equivalents	-89,322.48	110,499.58	-180.84

Annual Report 2021 26 / 111

(II) Significant Changes in the Profit from Non-Principal Business
□ Applicable √ Not applicable

Annual Report 2021 27 / 111

(III) Analysis of assets and liabilities
√Applicable □Not applicable

Assets and Liabilities
Unit: RMB 10,000

| Item | Amount at the end of the current period | Proportion of amount at the end of the current period in total assets (%) | Amount at the end of the previous period | Proportion of amount at the end of the previous period in total assets (%) | Year-on-year change (%) | Description Note 8: Bonds payable at the end of the period increased by 68.94% compared with that at the end of the previous period, mainly due to the issuance of corporate bonds and medium-term notes by the headquarters of the Company and its related party Yalong River Hydropower Development Co., Ltd. in the period.

Note 9: Other comprehensive income at the end of the period increased by 221.70% compared with that at the end of the previous period, mainly due to the change in equity of Beatrice Project invested overseas by the Company.

Overseas assets
√Applicable □Not applicable

(1) Asset scale
Included therein: overseas assets were 9,236,654,500 (Unit: yuan Currency: RMB), accounting for 3.83% of the total assets.

(2) Relevant description on the relatively high proportion of overseas assets
□Applicable √Not applicable

Restriction on Major Assets as at the end of the Reporting Period
√ Applicable □ Not Applicable
Unit: yuan

Items	Closing book value	Reason
Cash at bank and on hand	226,955,202.23	Performance security, bank guarantee and security deposit of bank acceptance bill, special funds for atmospheric pollution prevention and control
Accounts receivable	6,118,052,805.37	Pledge of Electricity charge collection right
Receivables financing	30,000,000.00	Bill pledges
Fixed assets	6,037,026,789.94	Mortgage loan of the Project and assets without certificate of title, sale and leaseback
Intangible assets	486,606,941.50	Mortgage loan of the Project and assets without certificate of title

Other descriptions
□Applicable √Not applicable

(IV) Analysis of industry operating information

Annual Report 2021 29 / 111

√Applicable □Not applicable

In 2021, the Company's domestic and overseas holding companies completed a total of 153,865 GWh of generation capacity and 149,633 GWh of on-grid energy, with a year-on-year increase of 3.61% and 3.45% respectively; the average on-grid price was RMB 0.319/kWh, with a year-on-year increase of 5.98%.

Annual Report 2021 30 / 111

Power industry operational information analysis

Information on electricity quantity and price in the reporting period
√ Applicable □ Not Applicable

	Generated energy (10MWh)	On-grid energy (10MWh)	Sales amount (10MWh)	Purchased power (if any) (10MWh)	On-grid price (RMB/MW h)	Selling price (RMB/MW h)
Business area/ type of generation	This year	Same period of last year	Year- on- Year	This year	Same period of last year	Year- on- Year
Tianjin	1,839,088.18	1,734,608.26	6.02	1,729,493.19	1,634,566.58	5.81
Thermal power	1,825,384.29	1,734,608.26	5.23	1,716,037.25	1,634,566.58	4.98
Wind power	13,703.89
Guangxi	1,751,522.71	1,560,598.04	12.23	1,647,274.55	1,470,226.19	12.04
Thermal power	1,705,702.96	1,524,698.80	11.87	1,602,449.00	1,435,237.50	11.65
Wind power	45,819.75	35,899.24	27.63	44,825.55	34,988.69	28.11
Gansu	491,410.31	487,259.48	0.85	484,956.92	480,748.11	0.88
Hydropower	412,965.42	407,685.89	1.29	407,950.51	402,638.03	1.32
Wind power	73,595.56	74,427.19	-1.12	72,263.06	73,078.20	-1.12
PV power generation	4,849.33	5,146.40	-5.77	4,743.35	5,031.88	-5.73
Fujian	2,066,931.27	1,986,730.36	4.04	1,950,052.66	1,876,234.27	3.93
Thermal power	2,066,931.27	1,986,730.36	4.04	1,950,052.66	1,876,234.27	3.93
Xinjiang	196,525.42	161,785.64	21.47	191,360.21	157,728.46	21.32
Wind power	174,244.95	139,443.07	24.96	169,345.15	135,824.19	24.68
PV power generation	22,280.47	22,342.57	-0.28	22,015.06	21,904.27	0.51
Guizhou	303,073.20	267,696.60	13.22	273,486.47	242,443.42	12.80
Thermal power	290,970.60	256,954.80	13.24	263,549.45	233,618.00	12.81
Garbage power generation	12,102.60	10,741.80	12.67	9,937.02	8,825.42	12.60
Sichuan	7,864,980.72	7,767,178.49	1.26	7,823,214.42	7,727,011.68	1.25
Hydropower	7,782,699.99	7,746,821.33	0.46	7,743,004.44	7,707,029.65	0.47
PV power generation	4,399.09	4,288.03	2.59	4,356.46	4,238.34	2.79
Wind power	77,881.64	16,069.13	384.67	75,853.52	15,743.69	381.80
Yunnan	726,281.98	794,245.95	-8.56	720,168.43	787,545.58	-8.56
Wind power	47,723.66	54,307.12	-12.12	46,775.51	53,273.35	-12.20
Hydropower	630,028.98	690,776.02	-8.79	625,347.53	685,511.25	-8.78
PV power generation	48,529.34	49,162.81	-1.29	48,045.39	48,760.98	-1.47
Qinghai	34,560.88	26,519.28	30.32	33,782.02	25,911.95	30.37
Wind power	26,903.86	18,655.74	44.21	26,257.04	18,174.95	44.47
PV power generation	7,657.02	7,863.54	-2.63	7,524.98	7,737.00	-2.74
Ningxia	16,581.59	5,862.20	182.86	16,224.76	5,759.37	181.71
PV power generation	4,496.05	4,416.52	1.80	4,415.95	4,346.02	1.61
Wind power	12,085.54	1,445.68	735.98	11,808.81	1,413.35	735.52
Zhejiang	11,275.03	10,880.69	3.62	11,178.55	10,796.94	3.53
PV power generation	11,275.03	10,880.69	3.62	11,178.55	10,796.94	3.53
UK	11,869.50	14,738.10	-19.46	11,707.30	14,486.40	-19.18
Wind power	11,869.50	14,738.10	-19.46	11,707.30	14,486.40	-19.18
Thailand	7,808.02	7,939.44	-1.66	6,445.07	6,520.40	-1.16
Garbage power generation	7,808.02	7,939.44	-1.66	6,445.07	6,520.40	-1.16
Jiangsu	15,525.53	8,697.26	78.51	15,470.34	8,670.04	78.43
PV power generation	15,525.53	8,697.26	78.51	15,470.34	8,670.04	78.43
Shaanxi	21,832.20	15,813.20	38.06	21,468.48	15,548.24	38.08
PV power generation	21,832.20	15,813.20	38.06	21,468.48	15,548.24	38.08
Hebei	5,366.60	429.42	1,149.73	5,276.69	423.12	1,147.09
PV power generation	5,366.60	429.42	1,149.73	5,276.69	423.12	1,147.09
Hainan	6,600.46	6,475.55		6,475.55
Wind power	6,600.46	6,475.55		6,475.55
Anhui	9,250.05	9,195.87		9,195.87
PV power generation	9,250.05	9,195.87		9,195.87
Jiangxi	6,062.72	6,020.25		6,020.25
PV power generation	6,062.72	6,020.25		6,020.25
Liaoning	0.09	0.08		0.08
PV power generation	0.09	0.08		0.08
Total	15,386,546.46	14,850,982.41	3.61	14,963,251.81	14,464,620.75	3.45

Annual Report 2021 31 / 111

Information on electricity quantity, income and cost in the reporting period
√ Applicable □ Not Applicable
Unit: RMB 100 million Currency: RMB

Type	Power generation (10MWh)	Year-on- Year	Sales amount (10MWh)	Year- on- Year	Income Amount of corresponding period last year	Change (%)	Cost components	Amount for the current period	Proportion of current amount to total cost (%)	Amount of corresponding period last year	Proportion of amount for the same period last year in total cost (%)	Change in the amount for the current period compared with the same period last year (%)
Thermal power	5,888,989.12	7.01	5,532,088.36	6.80	190.58	14.19	Fuel costs, depreciation costs, Employee compensation, repair costs, etc.	204.32	54.48	132.72	46.43	53.95
Hydropower	8,825,694.39	-0.22	8,776,302.48	-0.21	199.36	2.58	Depreciation costs, employee compensation, repair costs, etc.	77.30	20.61	66.47	23.26	16.29
Wind power	490,428.81	38.15	478,767.43	37.98	21.83	48.03	Depreciation costs, employee compensation, repair costs, etc.	9.03	2.41	6.56	2.29	37.73
PV power generation	161,523.52	25.17	159,711.45	25.31	12.86	27.87	Depreciation costs, employee compensation, repair costs, etc.	5.57	1.48	4.40	1.54	26.52
Miscellaneous	19,910.62	6.58	16,382.09	6.75	1.90	1.41	Fuel costs, depreciation costs, Employee remuneration, repair costs, etc.	0.91	0.24	0.75	0.26	20.75
Total	15,386,546.46	3.61	14,963,251.81	3.45	426.53	387.46	-	10.08	-	297.13	79.23	210.90

Annual Report 2021 32 / 111# Analysis of installed capacity

√Applicable □Not applicable

By the end of 2021, the holding installed capacity of the Company which has been put into production is 36.2183 million kW, of which, the installed capacity of hydropower is 20.765 million kW, accounting for 57.33%, the installed capacity of thermal power (including waste-to-energy) is 11.8808 million kW, accounting for 32.81%, the installed capacity of wind power is 2.2305 million kW, accounting for 6.16%, and the installed capacity of solar power is 1.342 million kW, accounting for 3.71%. In 2021, the Company's newly put into operation/acquired installed capacity was 4.423 million KW, including 4.015 million kW of hydropower, 98,000 kW of wind power and 310,000 kW of solar power. Dechang Wind Power demolished 3 wind turbines due to the construction of the Chengdu-Kunming railway, with a total of 7,000 kW. By the end of 2021, the installed capacity of each region that has been put into operation is shown in the table below:

Unit: 10,000kW

Region	Total installed capacity	Installed capacity of hydropower	Installed capacity of thermal power	Installed capacity of wind power	Installed capacity of solar power
Sichuan	1913.25	1870	40.25
Tianjin	405	400	5
Fujian	398.6	398.6
Guangxi	345.4	326	19.4
Yunnan	183.4	135	14.4	34
Gansu	113.75	71.5	39.45	2.8
Xinjiang	93.85	74.85	19
Guizhou	62.5	62.5
Qinghai	19.9	14.9	5
Anhui	17	17
Shaanxi	15	15
Jiangsu	12	12
Zhejiang	10	10
Ningxia	8	5	3
Jiangxi	5	5
Hainan	4.8	4.8
Hebei	4.4	4.4
Liaoning	4	4
Britain	5	5
Thailand	0.98	0.98
Total installed capacity	3621.83	2076.5	1188.08	223.05	134.2

Note: The above 11.8808 million kW of installed capacity of thermal power includes 34,800 kW of waste-to-energy.

By the end of 2021, the installed capacity under construction of the Company is 2.43 million kW, as shown below:

Unit: 10,000kW

S/N	Name	Design scale	Scale under construction
1	Lianghekou Hydropower Station	6×50	50
2	Liaoning Fuxin Solar Power	10	6
3	Guangxi Pubei Wind Power Phase III	10	10
4	Tianjin Ninghe Wind Power Phase II	5	5
5	Guangxi Qinzhou Phase III	2×66	66
6	Guazhou Beiqi Wind Power	40	40
7	Hangjinqi Wind Power	15	15
8	Batang Toru HEPP in Indonesia	4×12.75	51
	Total	-	243

4. Analysis of generating capacity

√Applicable □Not applicable

In 2021, the average utilization hours of the Company's power generation equipment were 4,665 hours, a year-on-year decrease of 116 hours. Among them, hydropower was 4,958 hours, a year-on-year decrease of 320 hours; thermal power was 4,971 hours, an increase of 326 hours year-on-year; wind power was 2,180 hours, a year-on-year decrease of 59 hours; solar power was 1,396 hours, a year-on-year decrease of 39 hours. The comprehensive auxiliary power consumption rate of the Company was 2.77%, including thermal power 6.08%, hydropower 0.56%, wind power 2.77% and solar power 2.06%. The coal consumption for the power supply of coal-fired power units was 297.65 g/kWh in the whole year, a year-on-year decrease of 0.58 g/kWh.

5. Information on the capital expenditures

√ Applicable □ Not Applicable

Unit: RMB 10,000

Item	Project value	Project schedule	Input amount this year	Cumulative actual invested amount
Yalong River Hydropower Development Co., Ltd.	1,232,289.37	Under construction	104,000.00	611,520.00
SDIC Inner Mongolia New Energy Co., Ltd.	17,522.38	Early development	15,000.00	17,500.00
Red Rock Investment Limited	135,878.63	Operation	135,878.63	135,878.63
Hengfeng Jinko Power Co., Ltd.	15,840.00	Putting into operation	15,840.00	15,840.00
Guiding Guoneng New Energy Co., Ltd.	5,167.58	Early development	1,050.00	1,050.00
Pingtang Leyang New Energy Co., Ltd.	18,812.53	Early development	3,750.00	3,750.00
Yancheng Zhihui Energy Power Co., Ltd	1,620.00	Putting into operation	1,620.00	1,620.00
Hainan Dongfang Gaopai Wind Power Generation Co., Ltd.	1,620.00	Putting into operation	1,620.00	1,620.00
Changzhou Tiansui New Energy Co., Ltd.	4,100.00	Putting into operation	4,100.00	4,100.00
Jiangsu Tiansai New Energy Development Co., Ltd.	15,120.00	Putting into operation	15,120.00	15,120.00
SDIC Jiuquan New Energy Co., Ltd.	7,991.39	Under construction	3,978.00	3,978.00
SDIC Qinzhou No.2 Power Generation Co., Ltd.	102,322.98	Under construction	31,500.00	31,500.00
SDIC (Hainan) New Energy Co., Ltd.	9,000.00	Early development	9,000.00	9,000.00
SDIC Jineng (Zhoushan) Gas Power Generation Co., Ltd.	37,413.50	Early development	510.00	510.00
Yunxian Qianrun New Energy Co., Ltd.	12,801.47	Under construction	9,500.00	9,500.00
Liaoning Dalian Pumped Storage Co., Ltd.	47,585.06	Early development	3,500.00	3,500.00
Batang Toru HEPP	186,106.68	Under construction	82,003.50	82,003.50
Benbrack Wind Power Project, UK	9,884.25	Early development	9,884.25	9,884.25
Total	1,861,075.82		447,854.38	957,874.38

6. Power market transaction

√Applicable □Not applicable

	Unit: billion kWh
	Current year	Previous year	YoY change
Total energy through market trading	625.90	467.77	33.81%
Total on-grid energy	1,496.33	1,446.46	3.45%
Percentage	41.83%	32.34%	Increased by 9.49 percentage points

7. Operation of power sales business

√Applicable □Not applicable

In 2021, the Company realized power sales of 1496.33 billion kWh. Among them, the five electricity retailers held by the Company sold a total of 16.317 billion kWh of power, the Company's power sales business went ahead in order and the power sales grew steadily. During the year, transactions were actually carried out in Beijing, Tianjin, Hebei, northern Hebei, Gansu, Xinjiang, Shaanxi, Anhui, Zhejiang, Hainan, Guizhou, Guangxi, Sichuan and other provinces, with 22 provinces participating in the transaction. The incremental distribution network project in Lanzhou New Area operated smoothly, with an annual power supply of about 88 million kWh. The overall development of the Company continues to improve.

8. Other descriptions

□Applicable √Not applicable

(V) Analysis on Investment

Overall Analysis of External Equity Investments

√ Applicable □ Not Applicable

① Overall situation

Unit: RMB 10,000

	Amount of investment in the reporting period	Increase or decrease in investments	Amount of investment in the same period of the previous year	Increase or decrease range in investments (%)
	447,854.38	223,386.25	224,468.13	99.52

② Information on invested companies

S/N	Investee	Main business activities	Shareholding Proportion of the Company
1	Yalong River Hydropower Development Co., Ltd.	Hydropower	52
2	SDIC Inner Mongolia New Energy Co., Ltd.	Wind power generation	100
3	Red Rock Investment Limited	Investment management	100
4	Hengfeng Jinko Power Co., Ltd.	PV power generation	90
5	Guiding Guoneng New Energy Co., Ltd.	PV power generation	100
6	Pingtang Leyang New Energy Co., Ltd.	PV power generation	100
7	Yancheng Zhihui Energy Power Co., Ltd	Energy storage power generation	81
8	Hainan Dongfang Gaopai Wind Power Generation Co., Ltd.	Wind power generation	100
9	Changzhou Tiansui New Energy Co., Ltd.	PV power generation	100
10	Jiangsu Tiansai New Energy Development Co., Ltd.	PV power generation	90
11	SDIC Jiuquan New Energy Co., Ltd.	Wind power generation	51
12	SDIC Qinzhou No.2 Power Generation Co., Ltd.	Thermal power generation	90
13	SDIC (Hainan) New Energy Co., Ltd.	Wind power generation	100
14	SDIC Jineng (Zhoushan) Gas Power Generation Co., Ltd.	Gas-fired power generation	51
15	Yunxian Qianrun New Energy Co., Ltd.	PV power generation	100
16	Liaoning Dalian Pumped Storage Co., Ltd.	Energy storage power generation	35
17	Fareast Green Energy Pte. Ltd	Hydropower	93.33
18	Benbrack Wind Farm Limited	Wind power generation	100

③ The holding equity of unlisted financial enterprises

Unit: yuan

Name of enterprises	Investment cost	Proportion of shareholding in this enterprise	Amount of investment in this period	Carrying amount at the end of the period	Profit and loss in the reporting period	Accounting subject	Source of equity interest
SDIC Finance Co., Ltd.	279,000,000.00	35.40%	-	2,657,414,274.40	148,000,339.93	Long-term equity investments	Investment

④ The holding equity of other listed companies

Unit: yuan

Securities code	Stock abbreviation	Investment cost	Shareholding proportion at the end of the period	Carrying amount at the end of the period	Profit and loss in the reporting period	Accounting subject	Source of equity interest
000899	Ganneng	2,159,170,000.00	33.72%	1,905,119,749.43	-91,705,086.12	Long-term equity investments	Investment
600725	Yunwei	6,657,250.41	0.46%	20,991,457.80	11,342,158.65	Financial assets held for trading	Repayment of credit
600323	Grandblue Environment	889,318,732.07	8.61%	1,216,854,188.46	94,193,185.85	Long-term equity investments	Investment
600163	Zhongmin Energy	198,154,692.32	1.19%	191,389,499.08	-	Other equity instrument investments	Investment

1. Major equity investment

√ Applicable □ Not Applicable

① On November 24, 2020, the 163rd General Manager's Office Meeting of the Company in 2020 deliberated and approved the Company's acquisition of 90% equity interest with RMB 158 million in Hengfeng Jinko Power Co., Ltd. As of January 13, 2021, the Company's acquisition of equity interest in Hengfeng Jinko Power Co., Ltd. was completed and included in the Company's consolidated statement scope.

② On March 1, 2021, the 26th General Manager's Office Meeting of the Company in 2021 deliberated and approved the Company's transfer of 81% equity interest in the Yancheng 10MW (40MWh) User-side Energy Storage Project for zero consideration to complete the holding. As of March 26, 2021, the Company's acquisition of equity interest in Yancheng Zhihui Energy Power Co., Ltd. was completed and included in the Company's consolidated statement scope.### (V) Major Assets and Equity Investments

③ On March 1, 2021, the 31st General Manager's Office Meeting of the Company in 2021 deliberated and approved the Company's acquisition of 100% equity interest with RMB 16.2 million in Hainan Dongfang Gaopai Wind Power Generation Co., Ltd. As of May 13, 2021, the Company's acquisition of the equity interest in Hainan Dongfang Gaopai Wind Power Generation Co., Ltd. was completed and included in the Company's consolidated statement scope.

④ On January 22, 2021, after deliberation and approval at the 15th General Manager's Office Meeting of the Company in 2021, the Company agreed with Red Rock Power Limited to acquire 100% equity interest of Benbrack Wind Farm Limited, a wholly-owned subsidiary of RWE Renewables UK Limited. In February, the Company obtained the control right of Benbrack Wind Farm Limited, which was included in the consolidation scope of the Company.

⑤ On June 15, 2021, after approval at the 84th General Manager's Office Meeting of SDIC Power in 2021, the Company acquired 90% equity interest in Jiangsu Tiansai New Energy Development Co., Ltd. for RMB 151.2 million and the project has been included in the Company's consolidated statement scope since August.

⑥ On June 15, 2021, after approval at the 84th General Manager's Office Meeting of SDIC Power in 2021, the Company acquired 100% equity interest in Changzhou Tiansui New Energy Co., Ltd. for RMB 41 million. The project has been included in the Company's consolidated statement scope since August.

⑦ In November 2020, the Company approved the investment proposal for the Batang Toru HEPP, and in May 2021, SASAC approved the relevant proposal. In October 2021, the Company completed the delivery of the equity interest in the Batang Toru HEPP and the project has been included in the Company's consolidated statement scope since November.

Major non-equity investment
□ Applicable
√ Not applicable
Financial assets at fair value
√ Applicable
□ Not Applicable

Unit: yuan

Item	Opening balance	Closing balance	Change for the period	Effect on the profit for the period
Yunwei	9,649,299.15	20,991,457.80	11,342,158.65	11,342,158.65
Exchangeable Bonds of Zheneng	846,220,000.00	-	-846,220,000.00	-936,980.96
Convertible Bonds of Zhongmin	90,344,000.00	-	-90,344,000.00	108,555,575.34
Contingent Consideration of ICOL Equity Interest	93,348,150.00	90,367,200.00	-2,980,950.00	-
Gui'an New Area	52,369,128.00	56,532,144.00	4,163,016.00	-
Yunnan Coal Chemical Industry Group Co. Ltd.	54,176,223.90	69,005,824.38	14,829,600.48	-
Hami Industrial (SDIC Hami Industrial Co., Ltd.)	8,471,145.00	8,267,580.00	-203,565.00	-
National Coal Exchange Co., Ltd.	12,000,000.00	12,000,000.00	-	-
Beijing Power Exchange Center Co., Ltd.	6,597,610.00	6,597,610.00	-	-
Tianjin Power Exchange Center Co., Ltd.	3,013,249.99	9,541,095.99	6,527,846.00	-
Sichuan Power Exchange Center Co., Ltd.	1,276,964.92	3,177,388.07	1,900,423.15	-
Guangxi Power Exchange Center Co., Ltd.	2,607,256.83	2,607,256.83	-	-
Zhongmin Energy	191,389,499.08	191,389,499.08	-	-
Total	1,177,465,770.96	470,477,056.15	-706,988,714.81	118,960,753.03

Specific progress of major asset restructuring and integration during the Reporting Period
□ Applicable
√ Not applicable

(VI) Sales of Material Assets and Equity
□ Applicable
√ Not applicable

(VII) Analysis of major holding and controlling shareholders
√ Applicable
□ Not Applicable

Information of major subsidiaries

Unit: RMB 10,000

S/N	Company name	Nature of business	Registered Capital	Total assets	Owners' equity attributable to the parent company	Operating Revenue	Operating profit	Net profit
1	Yalong River Hydropower	Hydropower	3,730,000.00	16,288,439.71	5,774,426.49	1,833,974.53	760,431.49	631,655.76
2	SDIC Jinneng	Thermal power	358,066.90	1,227,459.52	224,572.45	592,129.24	-166,191.49	-165,452.41
3	SDIC New Energy	Power investment	282,003.24	1,334,961.22	327,303.24	181,959.07	51,313.61	49,165.50
4	SDIC Genting Meizhouwan	Thermal power	320,667.13	615,644.01	294,730.74	469,515.52	-67,168.56	-51,699.07
5	SDIC Qinzhou	Thermal power	228,000.00	608,063.97	224,51.27	620,335.90	-22,407.70	-19,570.75
6	SDIC Dachaoshan	Hydropower	177,000.00	334,599.66	321,759.58	104,129.00	70,092.06	59,184.81
7	Huaxia Power	Thermal power	102,200.00	247,902.28	131,191.93	234,391.79	-19,765.98	-13,854.25

Where the operating performance of a subsidiary or joint-stock company fluctuated significantly year on year and had a significant impact on the consolidated operating performance of the Company, the analysis and explanation of the performance fluctuation and the reasons are as follows:

Unit: RMB 10,000

S/N	Company name	Net profit 2021	Net profit 2020	Year-on-year increase/decrease	Reasons for major changes
1	SDIC Beijiang	-165,452.41	34,210.95	-199,663.36	-583.62% Significant year-over-year loss due to the increase of coal cost.
2	SDIC Genting Meizhouwan	-51,699.07	61,031.93	-112,731.00	-184.71% Significant year-over-year loss due to the increase of coal cost.
3	SDIC New Energy	49,165.50	34,613.37	14,552.13	42.04% First, the projects put into operation last year came into full play throughout the year, and the projects have been put into operation successively this year, with enhanced profitability; Second, the main business place of Xinjiang and other regions had good resources this year, and profits increased due to the increase in power generation.
4	Red Rock Investment	4,135.32	-8,836.07	12,971.39	146.80% First, the electricity price of onshore wind power projects increased significantly this year, resulting in year-on-year profits; Second, the capital was received and the borrowings were paid off this year, resulting in a decrease in financial expenses.
5	SDIC Qinzhou	-19,570.75	31,951.05	-51,521.80	-161.25% Significant year-over-year loss due to the increase of coal cost.
6	Huaxia Power	-13,854.25	16,578.68	-30,432.93	-183.57% Significant year-over-year loss due to the increase of coal cost.
7	SDIC Panjiang	8,472.37	4,338.72	4,133.65	95.27% First, the on-grid energy increased year on year, resulting in a year-on- year increase in the profit of the power generation business; Second, the income from carbon emission trading was about RMB 32 million this year.

(VIII) Structured entities controlled by the Company
□ Applicable
√ Not applicable

VI. Discussion and Analysis on the Future Development of the Company

(I) Industry structure and trends

√ Applicable
□ Not Applicable

Forecast of national power supply and demand in 2022
According to the China Electricity Council, taking into account the domestic and foreign economic situation, power substitution and other factors driving the steady improvement of electrification level, the change of the base number of the previous year and other factors, it is estimated that the electricity consumption of the whole country in 2022 will be 8.7 trillion kWh-8.8 trillion kWh, with a year-on-year increase of 5% - 6% combined with a variety of methods to predict the power consumption of the whole society, as well as the prediction of experts on power supply and demand situation analysis and prediction. The growth rate of electricity consumption in the whole country in the quarter shows an overall upward trend quarter by quarter. Driven by the rapid development of new energy, it is expected that the new installed capacity of infrastructure in 2022 will reach a new high over the years. The installed capacity of the new power generation of infrastructure in the whole year will be about 230 million kW, of which about 180 million kW of non-fossil energy power generation will be put into operation. In addition, it is estimated that the installed capacity of all sizes of power generation will reach about 2.6 billion kW by the end of 2022, of which the total installed capacity of non-fossil energy power generation will reach about 1.3 billion kW, which is expected to reach half of the total installed capacity for the first time. Moreover, the total installed capacity of hydropower, grid-connected wind power, grid- connected solar power generation, nuclear power, and biomass power generation will reach about 410 million kW, 380 million kW, 400 million kW, 55.57 million kW and 45 million kW respectively. The installed capacity of coal-fired power will be about 1.14 billion kW. According to the power demand forecast, based on the analysis of key factors such as temperature, incoming water and thermal coal supply, it is estimated that the national power supply and demand will be in overall balance in 2022, and the power supply and demand in some regions will be tight during peak summer and peak winter, by comprehensively considering the newly put into operation and installed capacity, inter-provincial and inter-regional power exchange, power generation output, and reasonable standby, etc. During the peak-load time in summer, the power supply and demand in North China, Northeast China and Northwest China will be essentially balanced, while that in East China, Central China and South China will be tight. During the peak-load time in winter, the power supply and demand in North China, Northeast China and Northwest China will be essentially balanced, while that in East China, Central China and South China will be tight.
The "14th Five-Year Plan" Power industry pattern and trend
(1) The general trend is the green and low-carbon development. With the accelerated pace to realize the commitments stated in the Paris Agreement, the "3060" peak carbon dioxide emissions and the carbon neutrality, China's energy and power industry will complete in-depth reconstruction and transformation in the context of energy transition and energy revolution, posing unprecedented requirements toward green and low-carbon.
(2) The reform of the power system will touch on more deep-seated problems.# Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

Breaking inter-provincial barriers, improving the trading system, giving full play to the role of the market, promoting clean energy consumption, cultivating diversified entities, improving regulatory capabilities, gradually liberalizing operational power generation and consumption plans, and minimizing energy costs will be the keys to promote the further in-depth reform of the power system. (3) Supply and demand are generally balanced, and local peak regulation is under pressure. Annual Report 2021 43 / 111 It is expected that power demand will maintain a growth rate of over 5% during the "14th Five-Year Plan" period, and the overall supply and demand situation will be loose and relatively balanced. Moreover, as the proportion of renewable energy power generation continues to increase, the pressure of long-term peak regulation will also increase day by day, and the role of energy storage in the future energy system will continue to appear. (4) The competition for resources becomes increasingly intense with the parity on-grid tariff of new energy project. China's new energy development and utilization technologies continue to advance, and effects of scale economy are gradually appearing. The new wind power and solar power projects that was newly put into operation have fully achieved the parity on-grid tariff. All major power generation groups have set up higher goals on the new energy growth in "14th Five-Year Plan", and the competition for new energy project resources becomes increasingly intense. (5) Opportunities and challenges coexist in the international market. Today, the world is experiencing profound changes unseen in a century, the Chinese Government proposes accelerating the domestic market as the mainstay while domestic and international markets reinforce each other. In this context, the international power business is facing new opportunities and challenges.

(II) Development strategy of the Company

√Applicable □Not applicable

During the "14th Five-Year Plan" period, the Company's overall development strategy is taking high- quality development as the main line, implementing the new development concept, adhering to seek improvement instability, transformation and upgrading, innovation-driven, and in accordance with the standards of optimized asset structure, excellent management level and excellent investment performance, so as to write a new chapter of high-quality development of SDIC Power. Specifically, the Company will focus on clean energy and new energy fields, making good use of both domestic and international markets through strengthening safety in production, increasing marketing, deepening reform authorization, innovating talents incentive, improving the compliance system and financial management, and strict risk control, etc., so as to improve the three investment modes of greenfield development, merger and acquisition, and capital investment and build SDIC Power into a world-class comprehensive energy company with international competitiveness.

Specific objectives: By the end of the "14th Five-Year Plan", the Company plans to hold an installed capacity of 50 million kW, of which the installed capacity of clean energy will account for about 72%. The Company will continue to expand new industries focusing on pumped storage, energy storage and hydrogen energy, to form a certain scale or competitive advantage.

(III) Operation plan

√Applicable □Not applicable

In 2022, the total planned generation capacity of the enterprises within the consolidation scope of the Company will be 165,500 GWh.

1. Annual investment expenditure plan.

In 2022, the Company's total planned external investment is RMB 7.24 billion.

2. Annual financing plan.

In 2022, the planned total domestic financing amount of the headquarters of the Company is RMB 10.2 billion. It is planned to meet the fund demand by publicly issuing corporate bonds, medium-term notes, and renewable corporate bonds, or borrowing from financial institutions such as State Development & Investment Corp., Ltd., SDIC Finance Co., ltd., and banks. The total amount of overseas financing planned by the Company and its wholly-owned overseas subsidiaries is RMB 11.2 billion equivalent in foreign currencies. It is planned to be settled through Annual Report 2021 44 / 111 loans from Rongshi International Holding Co., Ltd. and its subsidiaries and financial institutions.

(IV) Possible risks

√Applicable □Not applicable

1. Electric power market risk

In 2021, the National Development and Reform Commission issued the Notice on Further Deepening the Market-oriented Reform for On-grid Price of Coal-fired Power Generation, requiring to liberalize the on-grid price of all coal-fired power generation in an orderly fashion, expand the fluctuation range of electricity market price to 20%, and provide market access to the total electricity of coal-fired units; It also requires to promote the market accessibility to both industrial and commercial users, cancel the sales price under the industrial and commercial catalogue, and entrust the power grid enterprises to purchase power for users who do not have the market access for trading for the time being. The market system covering medium and long-term, spot and auxiliary service transactions has been gradually improved, the transaction scale of the power market has continued to expand, and the market competition has further intensified.

Response measures: First, keep a close eye on the roll-out of relevant national policies, strengthen the study and interpretation of policies and rules, deeply analyze and actively respond to the impact of policies; Secondly, strengthen the guidance of all investment enterprises to switch their market concept, carefully calculate and actively participate in all kinds of market transactions; Thirdly, enhance professional capacity-building, strengthen training, increase exchanges among enterprises, and comprehensively build the professional capacity of marketing personnel at all levels.

2. Tariff risk

The tariff of power generation enterprises will face with multiple risks, for instance, policy adjustment, market competition and fuel price fluctuation, etc.

Response measures: With the increase of market transaction varieties and the enhancement of time division signing requirements, the marketing work of power generation enterprises has gradually changed to a professional and technical direction. The Company will actively cope with the new change trend of tariff, strength policy and market study and interpretation and in combination with actual situation of the power generation enterprises, accurately make estimation and calculation, scientifically formulate marketing strategies, seize market opportunities, and strive for a reasonable price level.

3. Coal price risk

Affected by the combination of multiple factors, the energy supply is tight, the contradiction between supply and demand of thermal coal is prominent, the overall supply situation is tightening, and the coal inventory of power generation enterprises in some areas continues to be on alert. In consequence, the price of thermal coal has soared to an all-time high, making it more difficult to source the coal or guarantee its supply.

Response measures: The Company will strengthen the control of coal transportation, give full play to the role of the medium and long-term coordination in ensuring coal supply, enhance the study and interpretation of the market situation, fully make use of the domestic and overseas markets, practically exploit the synergy advantages of the project, constantly optimize the coal inventory structure, and effectively ensure the stability of coal supply; In addition, the Company will continuously intensify internal fuel management, strictly control key indexes, and strive for reducing fuel cost.

4. The yield of new energy projects is in down turn

Under the background of "peak carbon dioxide emissions and carbon neutrality", the development vitality of new energy business continues to maintain at a high level, and the industry has stepped into the era of parity and competitive pricing. Overheated competition leads to the increase of non- technical costs in the industry, which may reduce the return on investment of new energy projects. Annual Report 2021 45 / 111

Response measures: Firstly, the Company will further give play to the advantages of the investment company and actively explore the economy of project investment. Secondly, improve the cost control capability in the development, construction and later operation phases, and improve the project operation efficiency. Thirdly, actively carry out energy storage, pumped storage, comprehensive intelligent energy and other businesses, explore new business areas, and broaden the source of income of the Company.

5. Environmental risk

With the step-by-step implementation of laws and policies regarding ecological and environmental protection, the electric power industry is facing with all-around and more stringent supervision of environmental protection. In the meantime, China has proposed to achieve the goal of peak carbon dioxide emissions in 2030 and the carbon neutrality in 2060, which raised the requirements for energy conservation and consumption reduction in the power industry.

Response measures: Firstly, the Company will strictly implement the national regulations and standards concerning environmental protection to ensure that each pollutant discharged reaches standard and various environmental protection facilities can operate stably and efficiently. Secondly, by rolling out the campaign of "Year for Enhancing the Foundation of Ecological and Environmental Protection", it will constantly improve the construction of organizational system and structure, strengthen the investigation and treatment of hidden dangers, and further raise the level of environmental protection management.Thirdly, it will timely follow up carbon emission reduction technologies and promote the enterprises under emission control to effectively save energy and reduce carbon.

6. Financial risk

Firstly, the development at the midstream of Yalong River and the development and expansion of Chinese and overseas projects require heavy fund support, bringing certain fund pressure to the Company. Secondly, considering the high asset-liability ratio, change in interest rates would directly affect the debt costs of the Company.

Response measures: The Company will, based on the electric power market demand, reasonably control the project development process, plan in advance, seize opportunities, select financing plans suitable for its development stage, strive to reduce capital costs, optimize debt structures and prevent capital and interest rate risks.

7. Extreme climate risk

The Company has a high proportion of hydropower portfolio, so the hydropower production and operation could significantly affect on its profit. Naturally, hydropower is greatly influenced by climate. Hydropower units of the Company are operated in Sichuan, Yunnan, Gansu and other regions and basins, and their hydropower generated energy will be influenced by extreme climates and unstable incoming water. The hydropower units under construction are primarily in remote regions, which may be impacted by debris flow and other natural disasters in rainy season, which brings uncertainties to the commissioning of these units.

Response measures: The Company will utilize modern prediction techniques, reasonably schedule each cascaded hydropower plant, and cooperate with external scheduling institutions, so as to maximize the utilization of water power resources; ensure internal equipment maintenance to improve equipment utilization rate; build up the awareness of safety responsibility, and take effective measures to strengthen construction management in flood seasons, to reduce the impact on projects under construction.

(V) Others
□Applicable √Not applicable

VII. Explanation on Matters Undisclosed According to Standards due to Inapplicability of Annual Report 2021 46 / 111 Provisions in the Standards or Special Causes Such as National Secrets and Business Secretes, and Reasons.

□Applicable √Not applicable

Annual Report 2021 47 / 111

Section IV Corporate Governance Overview

As a public company listed in both domestic and overseas, the Company has been operating business in a standard manner and in strict compliance with the requirements set forth in the laws, regulations and regulatory documents of the PRC and the overseas jurisdiction where the shares of the Company are listed, and has made continuous efforts to maintain and enhance the good image of the Company in the market. The Company is principally governed by the general meeting of its shareholders (the “general meeting”), the Board of Directors, the Supervisory Committee and senior management. A brief description of the general meeting, the Board of Directors, the Supervisory Committee and senior management of the Company is set out below.

General Meeting

The general meeting is the governing authority of the Company. General meetings include annual general meetings and extraordinary general meetings. An annual general meeting is required to be called once a year, within six months following the end of the previous fiscal year. An extraordinary general meeting is required to be called within two months from the date of the occurrence of any of the following circumstances:
* the number of Directors is fewer than six;
* the losses of the Company that have not been made up reach one third of its total share capital;
* shareholders that hold, individually or collectively, 10% or more of the shares of the Company request to hold such a meeting;
* the Board of Directors considers it necessary;
* the Supervisory Committee proposes to hold such a meeting; or
* other circumstances as provided by relevant laws, administrative regulations, departmental rules or the Articles of Association.

Board of Directors

The Board of Directors is responsible for the general management of the Company and is accountable to the general meeting. Board meetings include routine board meetings and extraordinary board meetings. A routine board meeting is required to be called semi-annually. An extraordinary board meeting may be called upon demand.

Supervisory Committee

The Supervisory Committee is responsible for overseeing the Company’s general management and is accountable to the general meeting. The Company believes that the increasing diversity of the administrative, management and supervisory bodies is one of the key factors that help support its strategic objectives and maintain sustainable development. At present, the Company’s administrative, management and supervisory bodies are diversified in terms of gender, region, and professional background: The Supervisory Committee includes 1 female supervisor and the Board of Directors includes 1 female director. Among the 9 directors of the Board of Directors, the 3 independent directors are respectively from the power industry, legal compliance, accounting and auditing fields, with various academic backgrounds and professional advantages.

Annual Report 2021 48 / 111

I. Relevant Information on Corporate Governance

√Applicable □Not applicable

In the reporting period, the Company has continuously improved the governance structure of legal person and standardized operation based on requirements of laws and regulations, such as Company Law, Securities Law, Guidelines for Articles of Association of Chinese Listed Companies and Code of Corporate Governance for Chinese Listed Companies, etc. (the relevant code is set out on http://www.csrc.gov.cn/pub/zjhpublic/zjh/201809/t20180930_344906.htm) and combined with actual situation of SDIC Power. Directors and supervisors of the Company have been diligent and responsible. Manager level and other senior executives have carried out their duties according to laws. Legal rights and interests of the Company and shareholders have been effectively maintained.

(I) Strengthen the system construction.

In the reporting period, the Company amended Articles of Association, Management Regulations for Foreign Investment, Management Regulations for Fundraising, and Management Measures for Bond Information Disclosure, to further comply with the relevant policy requirements of the CSRC and the Shanghai Stock Exchange and protect the interests of the Company's shareholders.

(II) Legally and effectively implement the function of “one meeting and two boards” (general meeting of shareholders, board of directors and Supervisory Committee) and management level.

The Company established general meeting of shareholders, Board of Directors and Supervisory Committee. Four special committees, namely the Strategy Committee, Audit Committee, Nomination Committee, and Remuneration and Assessment Committee were established under the board of directors. System of “one meeting and two boards” and management level has been complete. In reporting period, the Company operated based on laws, timely studied and interpreted the relevant rules and regulations such as Securities Law, well implemented decision-making and supervision function, persisted in the “openness, fairness and justice” principle, make full use of the status of general meeting of stockholders as the highest decision-making body and paid attention to protection of legitmate rights and interests of shareholders. In the reporting period, the Company held 9 general meetings of shareholders, 16 meetings of Board of Directors, 8 meetings of Supervisory Committee and 23 specialized committee meetings of board of directors in total. Operation of “one meeting and two boards” and management level met relevant regulations of Articles of Association and supervision regulations and management decision conformed to interests of all shareholders.

(III) Legally disclose information.

The Company established the Management System of Information Disclosure Matters and Management Method of Internal Report of Major Information. The investment enterprises appointed information disclosure liaison persons to ensure prompt transmission, collection and effective management of major information in the Company. The Company established the Accountability System for Major Error in Annual Report. Preparation of annual report was in the charge of the secretary of board of directors. In preparation of annual report, the Audit Committee, independent directors, directors, supervisors and senior executives fully performed their duties. Authenticity, accuracy and integrity of disclosed information were ensured through specifying responsibilities and strictly reviewing. During the reporting period, the Company made 4 regular reporting disclosures and 98 provisional announcement disclosures. The information disclosure was based on the compliance with regulatory requirements, met the needs of investors, fully and objectively reflected the true value of the Company. The Company has obtained the Grade A Ranking of Information Disclosure by the Shanghai Stock Exchange for five consecutive years.

(IV) Manage the relationships with the investors properly.

The Company further enhanced the publicity of corporate value, attached much importance to the management of relationship with the investors, increased exchanges with investors in various forms, and received more than 300 organizations and individual investors for surveying. Through reverse Annual Report 2021 49 / 111 roadshow, performance explanation meeting, strategy exchange meeting, investor hotline and SSE E-interaction and other forms and platforms, the seamless connection with the capital market and the dual-way communication with the investors were achieved. The Company's 2020 Performance Briefing was rated as the "Best Practice Case" by China Association for Public Companies.# (V) Manage the Registration of Insiders.

During the reporting period, the Company completed the registration and reporting of insiders with periodic reports and major issues according to Insider Information Confidential System. There was no insider trading.

Whether the corporate governance, laws and administrative regulations are significantly different from the regulations issued by CSRC on the governance of listed companies; if any, describe the reason.
□Applicable √Not applicable

II Specific Measures taken by the Controlling Shareholders and Actual Controllers of the Company to Ensure the Independence of the Company's Assets, Personnel, Finance, Institutions and Business, as well as Solutions, Work Progress and Follow-up Work Plans Affecting the Independence of the Company.
√Applicable □Not applicable

During the reporting period, the Company and its controlling shareholders were able to maintain independence in terms of business, personnel, assets, institutions and finance. The Company was responsible for its own profits and losses and risks, and there was no situation affecting the independent operation of the Company. The Company strictly observed various laws, regulations and the regulatory rules of the place where it is listed, continuously improved and enhanced the modern corporate governance system and governance ability of the Company in accordance with the requirements of modern enterprise system, and established and improved the corporate governance structure consisting of general meeting of shareholders, board of directors, Supervisory Committee and management.

The controlling shareholders, actual controllers and other entities under their control were engaged in the same or similar business as the Company, as well as the impact of peer competition or major changes in peer competition on the Company, the solution measures taken, the addressing progress and the follow-up solution plan.
□Applicable √Not applicable

III. Brief Introduction to General Meeting of Shareholders

### Name	Major working experiences
Zhu Jiwei	Engineer. Former General Manager of Xiamen Huaxia International Power Development Co., Ltd., General Manager of SDIC Power Holdings Co., Ltd., Incumbent Chairman of SDIC Power Holdings Co., Ltd.
Luo Shaoxiang	Senior Engineer. Former Deputy Director and Director of Strategic Development Department and Director of Operation and Management Department of SDIC. Incumbent Full-time Equity Director of State Development & Investment Corp., Ltd. and the Vice Chairman of SDIC Power Holdings Co., Ltd.
Zhang Wenping	Senior Accountant and Senior Engineer Former Chief Accountant, Trade Union Chairman of Xiamen Huaxia International Power Development Co., Ltd., Deputy General Manager of Fujian Pacific Power Co., Ltd., Deputy General Manager of SDIC (Fujian) Meizhouwan Electric Power Co., Ltd., General Manager of Xiamen Huaxia International Power Development Co., Ltd., Deputy Director of Finance Department of State Development & Investment Corp., Ltd. Incumbent Director and General Manager of SDIC Power Holdings Co., Ltd.
Zhang Lizi	Professor of North China Electric Power University (NCEPU), Dean of Modern Electric Power Research Institute, Director of Electric Power Market Research Institute of School of Electrical and Electronic Engineering. In 1990, he graduated from North China Electric Power University with a doctoral degree. Former Executive Vice President of Modern Electric Power Research Institute of North China Electric Power University, Assistant to the President, and Director of Electric Power Engineering Department. Incumbent Independent Director of SDIC Power Holdings Co., Ltd.
Xu Junli	Senior Partner of Tahota (Beijing) Law Firm He graduated from the Law Department of China University of Political Science and Law in 1986 with a bachelor's degree in law, and from the Graduate School of China University of Political Science and Law in 1989 with a master's degree in law. Former Partner of Beijing Zhongrui Law Firm, Partner of Beijing Zhongtian Law Firm and Lawyer of Guangxi Yuandong Business Law Firm. Incumbent Independent Director of SDIC Power Holdings Co., Ltd.
Yu Yingmin	Accounting Professor and Doctoral Supervisor of Accounting Institute, Central University of Finance and Economics. Incumbent Independent Director of SDIC Power Holdings Co., Ltd.
Zhang Yuanling	Senior Engineer. Deputy Manager of Project Management Department of SDIC Power, General Manager of SDIC Gansu Xiaosanxia Power Co., Ltd. and Deputy General Manager of SDIC Power Holdings Co., Ltd., General Manager of SDIC Chuangyi Industry Fund Management Co., Ltd. and the Vice Chairman of Chinese SDIC Gaoxin Industry Investment Co., Ltd., and Full-time Equity Director of State Development & Investment Corp., Ltd., as well as Director of SDIC Power Holdings Co., Ltd.
Zhan Pingyuan	Senior Accountant. Incumbent Chief Financial Officer and General Counsel of China Yangtze Power Co., Ltd. and Director of SDIC Power Holdings Co., Ltd.
Gao Hai	Senior Economist. Former Deputy Manager of the Comprehensive Department, Manager of Fuel Management Department, and Manager of Business Management Department of SDIC Power Holdings Co., Ltd. Incumbent Assistant to General Manager, Manager of Business Management Department, and Employee Director of SDIC Power Holdings Co., Ltd.
Qu Lixin	Senior Accountant. Former Assistant to General Manager and Chief Financial Officer of SDIC Huajing Power Holdings Co., Ltd., Deputy General Manager and Employee Director of SDIC Power Holdings Co., Ltd. Incumbent Full-time Equity Director of State Development & Investment Corp., Ltd. and the Chairman of the Supervisory Committee of SDIC Power Holdings Co., Ltd.
Zhang Haijuan	Senior Economist. Former Executive Deputy Director and Executive Director of the Audit Team 1 of the Audit Center of the Audit Department of State Development & Investment Corp., Ltd. Incumbent Executive Director of Audit Group 1 of Audit Evaluation Center of Audit Department of State Development & Investment Corp., Ltd. and the Supervisor of SDIC Power Holdings Co., Ltd.

Annual Report 2021 56 / 111

### Name	Major working experiences
Ma Bin	Senior Accountant at Researcher Level Former Chief Accountant and Secretary of Commission for Discipline Inspection of SDIC Xuancheng Electric Power Co., Ltd., Deputy General Manager of SDIC Panjiang Power Co., Ltd., Senior Business Manager of Audit Department of SDIC Power Holdings Co., Ltd., and Incumbent Audit Department Manager and Employee Supervisor of SDIC Power Holdings Co., Ltd.
Yu Haimiao	Senior Engineer. Former Director, Deputy Chief Engineer, Chief Engineer, and Deputy General Manager of the Engineering and Technology Department of Tianjin SDIC Jinneng Electric Power Co., Ltd., General Manager of SDIC Genting Meizhouwan Electric Power Co., Ltd. Incumbent Deputy General Manager of SDIC Power Holdings Co., Ltd.
Yang Lin	Senior Economist. Former Business Development Manager, Manager of the General Department, Responsible Project Manager, Human Resources Manager of SDIC Huajing Power Holdings Co., Ltd., Human Resources Manager of SDIC Power Holdings Co., Ltd., and Incumbent Secretary of Board of Directors and General Counsel of SDIC Power Holdings Co., Ltd.
Zhang Kaihong	Senior Engineer. Former Manager of the Business Development Department, Manager of the International Business Department, Assistant to the General Manager of SDIC Power Holdings Co., Ltd. Incumbent Deputy General Manager of SDIC Power Holdings Co., Ltd.
Zhou Changxin	Incumbent Deputy General Manager of SDIC Power Holdings Co., Ltd. Former Chief Accountant of Guangxi Railway Investment Group Co., Ltd., Deputy General Manager of Guangxi Railway Investment Group Co., Ltd., Chief Accountant of Guangxi Tourism Development Group, and Chief Accountant of China New Era Group Corporation. Incumbent Deputy General Manager and Financial Officer of SDIC Power Holdings Co., Ltd.

Other notes
□Applicable √Not applicable

Annual Report 2021 57 / 111

(II) Job titles of the current and dismissed directors, supervisors, senior executives in the reporting period

1. Incumbency in shareholder units

√Applicable □Not applicable

Name of the person holding the office	Name of shareholder company	Job title in shareholder company	Start date of term	End date of term
Luo Shaoxiang	State Development & Investment Corp., Ltd.	Full-time Equity Director	April 2016	-
	SDIC Mining Investment Co., Ltd.	Director	December 2015	-
	China SDIC Gaoxin Industrial Investment Corp., Ltd.	Director	April 2020	-
Zhang Yuanling	State Development & Investment Corp., Ltd.	Full-time Equity Director	June 2017	January 2022
	SDIC Health Industry Investment Co., Ltd.	Director	October 2020	December 2021
Qu Lixin	State Development & Investment Corp., Ltd.	Audit Commissioner of Audit Department	December 2018	January 2022
	State Development & Investment Corp., Ltd.	Full-time Equity Director	January 2022	-
	SDIC Capital Co.,Ltd.	Chairman of the Supervisory Committee	April 2019	-
	SDIC Intelligence Co., Ltd.	Chairman of the Supervisory Committee	April 2019	-
Zhang Haijuan	State Development & Investment Corp., Ltd.	Executive Director of Audit Group 1 of Audit Evaluation Center	December 2020	-
	SDIC Intelligence Co., Ltd.	Supervisor	September 2018	-

2. Incumbency in other company

√Applicable □Not applicable

Name of the person holding the office	Name of other company	Job title in other company	Start date of term	End date of term
Zhu Jiwei	Chinese Society of Hydroelectric Engineering	Executive Director	October 2016	November 2021
Zhang Wenping	Pan Jiazheng Hydropower Science and Technology Foundation	Vice president	January 2021	-
	Chinese Society of Hydroelectric Engineering	Executive Director	November 2021	-
Zhang Lizi	School of Electrical and Electronic Engineering, North China Electric Power University	Professor	October 1998	-
Xu Junli	Tahota (Beijing) Law Firm	Senior Partner	May 2020	-
	Haohua Chemical Science & Technology Corp., Ltd.	Independent Director	November 2015	-
Yu Yingmin	Central University of Finance and Economics	Professor, Doctorial Tutor	July 2005	-
	Huabao Flavours & Fragrances Co.,Ltd.	Independent Director	November 2016	December 2021
	Guangzhou Tech-Long Packaging Machinery Co., Ltd.	Independent Director	December 2018	-
	Beijing Youlu Education Technology Co.,Ltd.	Independent Director	April 2021	-
	Cherry Valley Breeding Technology Co., Ltd.	Independent Director	August 2021	-
Zhan Pingyuan	China Yangtze Power Co., Ltd.	Chief Financial Officer, General Counsel	April 2019	-
	Yangtze Power Capital	President and Chairman	November 2019	-
	Yangtze Power Investment Management Co., Ltd.	Chairman and General Manager	September 2020	-
	China Yangtze Power International (Hongkong) Co., Limited	Director	December 2020	-
Yu Haimiao	Chinese Society of Electrical Engineering(CSEE)	Council Member	January 2021	-
	The Price Association of China()	Council Member	April 2020	-
	China Electric Power Promotion Council	Council Member	April 2020	-
	China Electric Power Construction Association	Council Member	April 2020	November 2021
	China Electricity Council (CEC)	Council Member	September 2020	-
Zhang Kaihong	Overseas Branch of Chinese Society of Hydroelectric Engineering	Deputy Chairman	June 2021	-
Zhou Changxin	Chinese Society of Hydroelectric Engineering	Member of the Risk Management Professional Committee	April 2020	March 2021

Annual Report 2021 59 / 111

(III) Remuneration of Directors, Supervisors and Senior Executive
√Applicable □Not applicable

Decision-making procedure for remuneration of directors, supervisors and senior executives
The regulations related to the remuneration of directors and supervisors of# V. Affairs Related to the Board of Directors Held during the Reporting Period

Session	Date of holding	Resolutions
The 23rd Meeting of the 11th Board of Directors	February 22, 2021	All proposals reviewed at the meeting with resolutions adopted: Annual Report 2021 1. Proposal on Appointment of Overseas Accounting Firm 2. Proposal on Replacing the Securities Representative of the Company 3. Proposal on Convening the Second Extraordinary General Meeting of Shareholders in 2021
The 24th Meeting of the 11th Board of Directors	March 30, 2021	All proposals reviewed at the meeting with resolutions adopted: 1. Proposal on Amending the Foreign Investment Management System 2. Proposal on Amending the Management System of Raised Funds 3. Proposal on Registering and Releasing Medium-Term Notes 4. Proposal on Convening the Third Extraordinary General Meeting of Shareholders in 2021
The 25th Meeting of the 11th Board of Directors	April 20, 2021	All proposals reviewed at the meeting with resolutions adopted: 1. Proposal on Election of Independent Directors 2. Proposal on Convening the Fourth Extraordinary General Meeting of Shareholders in 2021
The 26th Meeting of the 11th Board of Directors	April 27, 2021	All proposals reviewed at the meeting with resolutions adopted: 1. 2020 Annual Report of Board of Directors of the Company 2. 2020 Annual Report of General Manager of the Company 3. 2020 Annul Debriefing Report of the Independent Directors of the Company 4. 2020 Annual Report of the Company 5. Proposal on 2020 Profit Distribution Plan 6. 2020 Annual Report of Corporate Social Responsibility 7. Proposal on 2021 Estimated Daily Related-Party Transactions 8. Proposal on 2020 Financial Statements 9. Proposal on 2021 Operating Plan 10. Proposal on Reviewing the Company's 2020 Annual Internal Control Evaluation Report 11. Proposal on Reviewing the Company's 2020 Annual Comprehensive Risk Management Report 12. Proposal on Reviewing the Internal Control Manual (2021 Edition) and Internal Control Standard Business Process (2021 Edition) 13. Proposal on Reviewing the Management Measures for Internal Control of the Company 14. Proposal on Change of Accounting Policy 15. Proposal on Provision for Asset Impairment in 2020 16. Report of the Company for the First Quarter of 2021
The 27th Meeting of the 11th Board of Directors	May 26, 2021	All proposals reviewed at the meeting with resolutions adopted: 1. Proposal on Adjustment of Company Organization 2. Proposal on Election of Members of Professional Committees of the Board of Directors of the Company 3. Proposal on Changing the Registered Capital and Amending the Articles of Association post the Company's Listing on London Stock Exchange 4. Proposal on Convening the 2020 Annual General Meeting of Shareholders
The 28th Meeting of the 11th Board of Directors	June 11, 2021	All proposals reviewed at the meeting with resolutions adopted: 1. Proposal on Acquisition of 69.9975% Equity and Investment Plan of Indonesia Batang Project
The 29th Meeting of the 11th Board of Directors	July 9, 2021	All proposals reviewed at the meeting with resolutions adopted: Annual Report 2021 1. Proposal on Election of Independent Directors 2. Proposal on Convening the Fifth Extraordinary General Meeting of Shareholders in 2021
The 30th Meeting of the 11th Board of Directors	July 19, 2021	All proposals reviewed at the meeting with resolutions adopted: 1. Proposal on the Company's Compliance with the Conditions for Non-Public Offering of A-shares 2. Proposal on the Company's Non-public Offering of A-shares 3. Proposal on the Company's Plan for Non-public Offering of A-shares 4. Proposal on the Feasibility Analysis Report on the Use of Capital Raised through the Company's Non-public Offering of A-shares 5. Proposal on the Report regarding Use of the Company's Previously-raised Capital 6. Proposal on Related-Party Transactions Involved in the Company's Non- public Offering of A-Shares 7. Proposal on Signing a Conditional Share Subscription Agreement between the Company and the Controlling Shareholders 8. Proposal on Requesting the General Meeting of Shareholders to Approve the Exemption of the Controlling Shareholder from Making an Offer 9. Proposal on the Risk Prompt and Filling Measures for Diluting the Immediate Return of the Company's Non-public Offering of A-shares and the Commitments of Relevant Principles 10. Proposal on Shareholder Return Plan of the Company for the Next Three Years (2021-2023) 11. Proposal on the Establishment of a Special Account for the Raised Capital by the Company 12. Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors and Persons Authorized by the Board of Directors to Handle Matters Related to the Non-public Offering of A-shares 13. 2020 Annual Work Report of the Remuneration and Assessment Committee of the 11th Board of Directors of the Company 14. Proposal on Convening the Sixth Extraordinary General Meeting of Shareholders in 2021
The 31st Meeting of the 11th Board of Directors	August 30, 2021	All proposals reviewed at the meeting with resolutions adopted: 1. Proposal on Providing Guarantee for Subsidiaries 2. Proposal on Election of Members of Professional Committees of the Board of Directors of the Company 3. Semiannual Report of 2021
The 32nd Meeting of the 11th Board of Directors	August 31, 2021	All proposals reviewed at the meeting with resolutions adopted: 1. Proposal on Signing the 2021 Performance Contract of Senior Executives of the Company 2. Proposal on the Report of the 14th Five-Year Plan
The 33rd Meeting of the 11th Board of Directors	September 13, 2021	All proposals reviewed at the meeting with resolutions adopted: 1. Proposal on Investing in Mengdigou Hydropower Station
The 34th Meeting of the 11th Board of Directors	September 17, 2021	All proposals reviewed at the meeting with resolutions adopted: 1. Proposal on the Company Meeting the Conditions for Public Insurance of Corporate Bonds to Professional Investors 2. Proposal on the Public Issuance of Corporate Bonds to Professional Investors 3. Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors and Persons Authorized by the Board of Directors to Handle Matters Related to the Corporate Bonds 4. Proposal on Convening the Seventh Extraordinary General Meeting of Shareholders in 2021
The 35th Meeting of the 11th Board of Directors	October 28, 2021	All proposals reviewed at the meeting with resolutions adopted: 1. Proposal on Amending the Measures for the Administration of Asset Impairment Provisions 2. Proposal on Amending the Working Rules of the Nomination Committee of the Board of Directors 3. Proposal on Change of Accounting Firm 4. Proposal on Shareholder Return Plan of the Company for the Next Three Years (2021-2023) 5. Third Quarterly report of 2021
The 36th Meeting of the 11th Board of Directors	December 3, 2021	All proposals reviewed at the meeting with resolutions adopted: 1. Proposal on Utilizing Raised Funds to Replace the Self-raised Funds of Pre-invested Raised Funds Investment Projects 2. Proposal on Amending the Administrative Measures for the Remuneration and Evaluation of Directors, Supervisors and Senior Executives 3. Proposal on Amending the Management System of Bond Information Disclosure 4. Proposal on Convening the Eighth Extraordinary General Meeting of Shareholders in 2021
The 37th Meeting of the 11th Board of Directors	December 17, 2021	All proposals reviewed at the meeting with resolutions adopted:

The 38th Meeting of the 11th Board of Directors

December 31, 2021

All proposals reviewed at the meeting with resolutions adopted:
1. Proposal on 2022 Estimated Daily Related Transactions
2. Proposal on Advance Payment of Partial Performance Pay in 2021

VI. Performance of Duties by Directors

(I) Directors' attendance at the meetings of Board of Directors and general meeting of shareholders

Director Name	Independent director or not	Attendance at the meetings of Board of Directors	Attendance at the general meetings of shareholders	Meetings of Board of Directors that should be attended this year	Meetings with attendance by proxy	Absence
Zhu Jiwei	No	16	16	15	No	8
Luo Shaoxiang	No	16	16	14	No	7
Zhang Wenping	No	16	16	15	No	8
Zeng Ming	Yes	8	8	7	No	0
Shao Lvwei	Yes	4	4	3	No	1
Zhang Lizi	Yes	8	8	7	No	2
Xu Junli	Yes	12	12	10	No	2
Yu Yingmin	Yes	16	16	15	No	1
Zhang Yuanling	No	16	16	15	No	7
Zhan Pingyuan	No	16	16	15	No	0
Gao Hai	No	16	16	15	No	2

Explanation on failure to attend in person at two consecutive meetings of Board of Directors
□Applicable √Not applicable

Frequency of the meetings of Board of Directors held during the year 16
Including: on-site meetings 1
Frequency of meetings held in communication mode 14
Frequency of on-site meetings held in communication mode 1

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

□Applicable √Not applicable

(III) Others

□Applicable √Not applicable

VII. Special Committees under the Board of Directors

√Applicable □Not applicable

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

Category of Special Committee	Name of member
Audit Committee	Yu Yingmin, Xu Junli, Zhang Lizi
Nomination Committee	Zhang Lizi , Xu Junli, Zhang Yuanling
Remuneration and Assessment Committee	Xu Junli, Yu Yingmin, Zhang Yuanling
Strategy Committee	Zhu Jiwei, Luo Shaoxiang, Zhang Lizi

(II) During the reporting period, the Strategy, Audit, Nomination, Remuneration, and Evaluation Committee held a total of 23 meetings.

Date of holding	Contents	Important opinions and recommendations
February 22, 2021	The 8th Meeting of the 11th Audit Committee	The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention: 1. Proposal on Appointment of Overseas Accounting Firm
April 27, 2021	The 9th Meeting of the 11th Audit Committee	The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention: 1. 2020 Annual Report of the Company 2. Proposal on 2021 Estimated Daily Related Transactions 3. Proposal on 2020 Financial Statements 4. Proposal on Reviewing the Company's 2020 Annual Internal Control Evaluation Report 5. Proposal on Reviewing the Company's 2020 Annual Comprehensive Risk Management Report 6. Proposal on Reviewing the Internal Control Manual (2021 Edition) and Internal Control Standard Business Process (2021 Edition) 7. Proposal on Reviewing the 2020 Annual Internal Audit Work Report 8. Evaluation Report on the Audit Institution's Work in 2020 9. Opinions on the Verification of the Company's 2020 Financial Final Accounts and 2020 Annual Report 10. Opinions on the Verification of the Company's 2020 Internal Control Evaluation Report 11. Proposal on Reviewing the Management Measures for Internal Control of SDIC Power Holdings Co., Ltd. 12. Proposal on Change of Accounting Policy 13. Proposal on Provision for Asset Impairment in 2020 14. First Quarterly report of 2021 15. Performance of Audit Committee of the Company in 2020
July 19, 2021	The 10th Meeting of the 11th Audit Committee	The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention: 1. Proposal on the Company's Non-public Offering of A-shares 2. Proposal on the Company's Pre-arranged Planning Related to Non- public Offering of A-shares; 3. Proposal on the Feasibility Analysis Report on the Use of Capital Raised through the Company's Non-public Offering of A-shares; 4. Proposal on Related Transactions Involved in the Company's Non- public Offering of A-Shares 5. Proposal on Signing the Conditional Share Subscription Agreement between the Company and the Controlling Shareholders
August 30, 2021	The 11th Meeting of the 11th Audit Committee	The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention: 1. Semiannual Report 2021 of the Company
October 28, 2021	The 12th Meeting of the 11th Audit Committee	The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention: 1. Proposal on Change of Accounting Firm; 2. Third Quarterly report of 2021.
December 17, 2021	The 13th Meeting of the 11th Audit Committee	The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention: 1. Proposal on Related Transactions of Transferring 60% Equity of Newsky (China)
December 31, 2021	The 14th Meeting of the 11th Audit Committee	The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention: 1. Proposal on 2022 Estimated Daily Related Transactions
January 29, 2021	The 5th Meeting of the 11th Strategy Committee	The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention: 1. Report of the Company on Post-evaluation of Investment Projects 2. Compilation Report of the Company's "14th Five-Year Plan"
April 27, 2021	The 6th Meeting of the 11th Strategy Committee	The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention: 1. Performance of the Strategy Committee in 2020 2. Proposal on 2021 Annual Operating Plan
July 19, 2021	The 7th Meeting of the 11th Strategy Committee	The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention: 1. Proposal on the Company's Non-public Offering of A-shares 2. Proposal on the Company's Pre-arranged Planning Related to Non- public Offering of A-shares; 3. Proposal on the Feasibility Analysis Report on the Use of Capital Raised through the Company's Non-public Offering of A-shares
August 31, 2021	The 8th Meeting of the 11th Strategy Committee	The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention: 1. Proposal on the Report of the 14th Five-Year Plan
September 13, 2021	The 9th Meeting of the 11th Strategy Committee	The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention: 1. Proposal on Investing in Mengdigou Hydropower Station
April 20, 2021	The 6th Meeting of the 11th Nomination Committee	The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention: 1. Proposal on Election of Independent Directors
April 27, 2021	The 7th Meeting of the 11th Nomination Committee	The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention: 1. Performance of the Nomination Committee of the Company in 2020
July 9, 2021	The 8th Meeting of the 11th Nomination Committee	The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention: 1. Proposal on Election of Independent Directors
August 30, 2021	The 9th Meeting of the 11th Nomination Committee	The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention: 1. Proposal on Election of the Chairman of the Nomination Committee of the Board of Directors of the Company
October 28, 2021	The 10th Meeting of the 11th Nomination Committee	The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention: 1. Proposal on Amending the Working Rules of the Nomination Committee of the Board of Directors
April 27, 2021	The 5th Meeting of the 11th Remuneration and Assessment Committee	The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention: 1. Performance of Remuneration and Assessment Committee in 2020
May 27, 2021	The 6th Meeting of the 11th Remuneration and Assessment Committee	The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention: 1. Proposal on Election of the Chairman of the Remuneration and Assessment Committee of the Board of Directors of the Company
July 19, 2021	The 7th Meeting of the 11th Remuneration and Assessment Committee	The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention: 1.

August 31, 2021

The 8th Meeting of the 11th Remuneration and Assessment Committee

The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention:

Proposal on Signing the 2021 Performance Contract of Senior Executives of the Company

December 3, 2021

The 9th Meeting of the 11th Remuneration and Assessment Committee

The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention:

Proposal on Amending the Administrative Measures for the Remuneration and Evaluation of Directors, Supervisors and Senior Executives

December 31, 2021

The 10th Meeting of the 11th Remuneration and Assessment Committee

The meeting deliberated and adopted the following proposal with three votes in favor, none against, and no abstention:

Proposal on Advance Payment of Partial Performance Pay in 2021

(3). Specific circumstances of objections
□Applicable √Not applicable

VIII. Explanation that the Supervisory Committee Finds that the Company Has Risks
□Applicable √Not applicable

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

IX. Employees of Parent Company and Major Subsidiaries at the End of the Reporting Period

(I) Employees


Number of current employees of the parent company	126
Number of current employees of major subsidiaries	8,768
Total number of current employees	8,894
Number of retired employees requiring subsidies from the parent company and major subsidiaries	0

Composition of specialties

Category	Number of employees
Production personnel	4,955
Sales personnel	112
Technical personnel	1,973
Financial personnel	315
Administrative personnel	1,539
Total	8,894

Educational background

Category of education background	Number (person)
Graduate degree or higher degree	491
Bachelor	4,409
Junior college	1,897
Technical secondary school graduates or below	2,097
Total	8,894

Note: As of December 31, 2021, 733 employees have retired from the parent company and major subsidiaries. According to the requirements of socialized management transfer of retirees, all the expenses for the retirees and those who intend to retire before December 31, 2023 to be borne by the Company have been accrued in 2020. At present, the number of retired employees whose expenses are borne by the parent company and major subsidiaries is 0.

(II) Remuneration policy
√Applicable □Not applicable

According to the system, the Company strictly manages labor costs and total wages, strengthens daily supervision, and improves the system of salary management. In terms of labor cost management, the Company adheres to the principle of efficiency matching, to match the growth of total labor cost and total wages with the growth of economic benefits. In terms of total wage management, the Company strictly implements the Company's rules and regulations, strengthens the guiding role of wage distribution, and focuses on the subsidiaries with stable growth of benefits and breakthrough progress in business development, and further optimizes the incentive and restraint mechanism of income distribution. In the daily supervision process, the Company makes full use of the comprehensive financial data management platform, closely tracks the implementation of labor cost and total wage budget of subsidiaries, makes statistical analysis, carefully analyzes and finds out the reasons for the labor cost data with large increase and decrease, and reminds relevant subsidiaries. In terms of salary distribution, the Company adheres to the principle of "flexible adjustment of income", adheres to the guidance of performance results, fully mobilizes the enthusiasm and initiative of employees, and gives full play to the incentive-oriented role of salary distribution.

(III) Training plan
√Applicable □Not applicable

In 2021, the training work was closely carried out around the Company's development strategy and annual key training plan. The Company revised the training management measures to further standardize the coverage and use principles of training funds. From the perspective of business needs, the Company organizes professional trainings, involving many fields of power plant operation and function construction, carries out skills trainings and safety education for front-line production personnel, and organizes key special training such as discipline inspection and supervision, human resources management, power marketing and information technology, so as to unify working standards and improve working level. The Company attaches great importance to the development and training and career guidance of talents, and organizes special training for new employees, young employees and middle managers, so as to distinguish levels, identify key points and teach accurately. The Company keeps carrying out general training for the future, focusing on cultivating employees' international vision and English application ability, and carrying out four international trainings throughout the year, and providing employees with diversified learning channels and abundant learning opportunities. In 2021, the Company's training coverage rate reached 94.63%, and the per capita training time was 105.59 hours, giving full play to the positive role of training in improving personnel quality, stimulating enterprising spirit and enhancing cultural identity.

(IV) Labor Outsourcing
□Applicable √Not applicable

X. Plans for Profit Distribution and Conversion of Capital Reserve into Share Capital

(I) Formulation, implementation and adjustments of cash dividend policy
√Applicable □Not applicable

Formulation: The Company's cash dividend policy is mainly referred to Article 10.1.7 of the Articles of Association (disclosure date: January 12, 2022) and the Shareholder Return Plan of the Company for the Next Three Years (2021-2023) (disclosure date: October 30, 2021, announcement number: 2021-083). The main related contents are as follows: "The Company shall maintain the continuity and stability of the profit distribution policy. The profits accumulatively distributed in cash by the Company in recent three years are no less than 30% of the average annual profits available for distribution in recent years. The Company's profit distribution policy adjustment plan shall seek the opinions of independent directors and supervisors in advance and be approved by more than two-thirds of the voting rights held by shareholders present at the general meeting of shareholders. In the process of decision-making and demonstration on the profit distribution plan, the Board of Directors should actively communicate with shareholders, especially small and medium shareholders, through various channels, fully listen to the opinions and demands of small and medium shareholders, and answer the concerns of small and medium shareholders in a timely manner. The independent director may propose a dividend plan based on opinions of medium and small shareholders and directly submit to the Board of Directors for deliberation. The Board of Directors of the Company shall distinguish the following circumstances taking into account its industry features, development stages, business model and profitability as well as whether it has any significant capital expenditure arrangement, and put forward differentiated cash dividend policy in accordance with the procedures set out in the Articles of Association:
(1) If the Company is at a mature development stage without major capital expenditure arrangement, cash dividends shall account for at least 80% of the distributed profits;
(2) If the Company is at a mature development stage with major capital expenditure arrangement, cash dividends shall account for at least 40% of the distributed profits;
(3) If the Company is at a growth development stage with major capital expenditure arrangement, cash dividends shall account for at least 20% of the distributed profits;
The development stage of the Company at the time of cash dividends shall be determined by the Board of Directors of the Company on a case-by-case basis. Major investment plans or major cash expenditures refer to that the Company plans to invest abroad, acquire assets or purchase equipment in the next 12 months (except for the items of raised funds), and the accumulated expenditure reaches or exceeds 30% of the latest audited net assets of the Company or a single cash expenditure item exceeds RMB 500 million."
"The accumulated profit distributed by the Company in cash in the last three years shall not be less than 30% of the average annual distributable profit realized in the last three years, and the profit to be distributed by the Company in cash in 2021-2023 shall not be less than 50% of the distributable profit realized in consolidated statements in that year in principle."
Implementation: At the 42nd meeting of the 11th Board of Directors of the Company, it is recommended to distribute cash dividends in 2021 based on the total share capital of 7,454,179,797 shares, with a dividend of RMB 0.1635 per share (including tax), with a total cash dividend of 1,218,758,396.81, accounting for about 50% of the net profit attributable to shareholders of the parent company in 2021.
3.# Section IV Other Information (Continued)

XI. Share Incentive Plan, Employee Stock Ownership Plan or Other Employee Incentives and Effects thereof

(I) Incentives disclosed in the temporary announcements and without progresses or changes in the follow-up implementation process

□ Applicable √ Not applicable

(II) Incentives not disclosed in any temporary announcements or with follow-up actions

Stock ownership incentive
□ Applicable √ Not applicable
Other description
□ Applicable √ Not applicable
Employee stock ownership plan
□ Applicable √ Not applicable
Other incentives
□ Applicable √ Not applicable

(III) Stock ownership incentives granted to the directors and senior executives during the reporting period

□ Applicable √ Not applicable

(IV) Establishment and implementation of assessment system and incentive system for senior executives during the reporting period

□ Applicable √ Not applicable

XII. Construction and Implementation of Internal Control System during the Reporting Period

√ Applicable □ Not applicable

In 2021, the Company reorganized the internal control system, revised and improved the Internal Control Management Measures according to the latest regulations of the regulatory authorities and the actual situation of the Company, further optimized the internal control system management standards and defect identification standards, and comprehensively revised the Internal Control Manual, Internal Control Standard Business Process and the general template for internal control evaluation. In addition, the Company overcame the impact of the epidemic this year, explored new modes and methods of work, and carried out publicity and training on the new internal control system for subsidiaries through video, guided subsidiaries to build and optimize the internal control system, which is more conducive to ensuring the realization of the Company's strategic, operational, financial, asset and compliance objectives, and reducing and preventing operational risks more effectively.

By the end of 2021, the Company had completed 49 revised and new management systems; and all subsidiaries had completed the construction and optimization of the latest internal control system, and formed the latest internal control management system including internal control management system, internal control manual, internal control standard business process, internal control self- evaluation template and other documents.

Explanation of major defects in internal control during the reporting period

□ Applicable √ Not applicable

XIII. Management and Control of Subsidiaries during the Reporting Period

√ Applicable □ Not applicable

In 2021, the Company vigorously expanded its clean energy business, and formulated a special incentive scheme for business development for the first time, which further stimulated and mobilized the enthusiasm and initiative of all employees in business development, and served to promote the successful completion of the development goals of the Company's "14th Five-Year Plan". By expanding businesses in five new provinces, the Company has set up three new energy regional companies and three project development working groups. By the end of the year, the Company has laid out 11 new energy regional management companies throughout the country. The Company has continuously increased its talent reserve, formulated a plan for the construction of financial, business and production personnel, and carried out the management improvement of new M&A projects in strict accordance with the Company's management standards, so as to ensure that the management is in place and realize potential tapping and benefit enhancement.

XIV. Explanation of Relevant Information of Internal Control Audit Report

√ Applicable □ Not applicable

ShineWing Certified Public Accountants LLP (Special General Partnership) hired by the Company has audited the effectiveness of internal control related to the Company's financial report and issued an unqualified audit report. For details, please refer to the 2021 Internal Control Audit Report of the Company disclosed on the same day (April 29, 2022).

Whether to disclose the internal control audit report: Yes
Type of opinion in internal control audit report: standard unqualified opinion

XV. Rectification of Self-Inspected Problems in the Special Action for Corporate Governance of Listed Companies

According to the work arrangement of Beijing Securities Regulatory Bureau on "Special Action for Corporate Governance", the Company carried out special self-inspection work. During the reporting period, the corporate governance structure was perfect and the rights and responsibilities were clear, which complied with the relevant regulations of CSRC and Shanghai Stock Exchange on the corporate governance of listed companies. The Company will continue to revise the Company's management system, deepen the reform of corporate governance, strictly review information disclosure, carefully implement the management of investor relations, and continuously improve the quality of the Company as listed company in accordance with the latest laws, regulations and rules.

XVI. Others

□ Applicable √ Not applicable

Section V Environmental and Social Responsibilities

I. Environmental Information

(I) Environmental protection of the companies and their major subsidiaries belonging to key pollutant discharge units as published by the environmental protection departments

√ Applicable □ Not applicable

1. Pollution drainage information

√ Applicable □ Not applicable

Province and City	Power plant	Fuel	SO₂	NOₓ	Smoke dust	CO D	Quantity of discharge outlets	Arrangement of discharge outlets	Whether it is up to standard
Tianjin	SDIC Beijiang	Conventional coal burning	10.12	31.15	1.28	0	6	Consistent with the pollutant discharge permit	Meeting the standard
Guangxi	SDIC Qinzhou	Conventional coal burning	14.08	33.13	1.93	0	17	Consistent with the pollutant discharge permit	Meeting the standard
Fujian	SDIC Genting	Conventional coal burning	15.39	37.21	2.94	0	8	Consistent with the pollutant discharge permit	Meeting the standard
	Huaxia Power	Conventional coal burning	9.08	36.5	2.65	0.03	6	Consistent with the pollutant discharge permit	Meeting the standard
Guizhou	SDIC Panjiang	Coal gangue	76.84	80.96	13.32	0	5	Consistent with the pollutant discharge permit	Meeting the standard

2. Construction and operation of pollutant prevention facilities

√ Applicable □ Not applicable

All the power generation enterprises of the Company are building pollutant prevention facilities according to national and local requirements, to ensure the smooth operation of the pollutant prevention facilities.

3. Environmental impact assessment and other administrative permits of environmental protection for construction projects

√ Applicable □ Not applicable

All construction projects of the Company have gone through the environmental impact evaluation, and have passed the environmental protection acceptance.

4. Emergency response plans for environmental emergencies

√ Applicable □ Not applicable

The Company has made emergency response plans for emergent environmental incidents and strictly abide by them according to national and local requirements.

5. Environmental self-monitoring programs

√ Applicable □ Not applicable

The Company carries out online pollutant discharging monitoring according to national and local requirements. According to the pollutant discharge permit system and self-monitoring regulations, it carefully makes the self-monitoring plans and strictly carries out the plans.

6.# Annual Report 2021

Section VI Important Matters

I. Performance of Commitments

(I) Commitments of interested parties including the actual controllers, shareholders, related parties, acquirers and the Company during or up to the reporting period √Applicable □Not applicable

Commitment background	Commitments Type	Commitment party	Commitments Content	Commitment time and period	Any period of performance or not	Performed in a timely and strict manner or not
Commitments related to major asset restructuring	Solve horizontal competition	SDIC	SDIC committed in the 2002 material asset replacement of the Company that, after SDIC became the controlling shareholder of the Company, it wouldn't directly or indirectly participate in any business or activity where it's a competitor of the Company or its subsidiaries.	Committed on: April 25, 2002 Commitment period: Long term.	Yes	Yes
	Resolving related party transactions	SDIC	SDIC committed in the 2002 material asset replacement of the Company that, after SDIC became the controlling shareholder of the Company, it would minimize and regulate the related-party transactions with the Company. In the case of related-party transactions, it would go through the legal procedures and timely disclose the relevant information. It undertook not to harm the legal rights of the Company and other shareholders through related-party transactions.	Committed on: April 25, 2002 Commitment period: Long term.	Yes	Yes
	Resolving related party transactions	SDIC	SDIC committed in the 2009 material assets restructuring of the Company in terms of related-party transaction matters of the Company and its affiliated companies depositing with SDIC Finance Co., Ltd., an affiliated company to SDIC, "Where the Company and its affiliated companies deposit with SDIC Finance Co., Ltd. and suffer losses due to insolvency of SDIC Finance Co., Ltd., SDIC would, within 30 working days after receiving a written notice from the Company concerning the case, compensate the Company in cash according to the report from an audit institution stating the loss case and amount suffered by SDIC Power."	Committed on: September 16, 2009. Period of commitment: Long term.	Yes	Yes
	Guarantee and compensation for the value of purchased assets	SDIC	SDIC committed in the 2009 material assets restructuring of the Company, in terms of the damage compensation in the lawsuits against Yalong Hydro, an affiliated company of the 2009 restructuring target, by Mianning Mianli Rare Earth Ore Processing Co., Ltd. in May 2009 and by Xichang Chengzong Mining Co., Ltd. in July 2009, "After this material assets restructuring, where the Company suffers losses due to the aforementioned lawsuits, SDIC undertakes to, within 30 working days after receiving a written notice from SDIC Power stating the losses, compensate SDIC Power in cash according to the report of an audit institution stating the loss case and amount."	Committed on: October 16, 2009. Commitment period: When the conditions are fulfilled. The Chengzong Mining and Mianli Rare Earth cases have been closed, without triggering the compensation conditions.	Yes	Yes
Commitments concerning refinancing	Solve horizontal competition	SDIC	SDIC committed in the 2007 refinancing of the Company, "The Company is the only domestic capital operation platform of SDIC, and SDIC has entrusted all thermal power assets good to be put in the listed company to the Company to manage."	Committed on: May 28, 2007. Commitment period: Long term.	Yes	Yes
	Asset injection	SDIC	SDIC committed in the 2010 corporate governance special activity and refinancing of the Company, "We plan to, after the Company publicly issues convertible corporate bonds, inject our independent power generation business assets (excluding the relevant assets, business or equity of the direct holding listed companies of SDIC other than the Company ) in the Company in 5 years through assets M&A. SDIC would make and implement power assets integration plans step by step, considering the conditions of the relevant assets and the recognition by capital markets."	Committed on: September 30, 2010. Original commitment period: January 25, 2016. The commitment amendment was adopted at the first Extraordinary General Meeting of Shareholders in 2016.	Yes	Yes
	Asset injection	SDIC	On December 24, 2015, SDIC amended its commitment on the 2010 corporate governance special activity and refinancing of the Company. The amendment was adopted at the first Extraordinary General Meeting of Shareholders in 2016. SDIC would inject the independent power generation business assets within two years after such assets meet the assets injection conditions in SDIC Power. Assets injection conditions: 1. The production and operation conforms to the applicable laws, administrative regulations and Articles and Association, the national industrial policies, as well as the laws and regulations on environmental protection, work safety, land management and antitrust requirements. 2. The assets concerned are clear in ownership, meet the listing conditions under the national laws, regulations and normative documents, and are free from problems like incomplete property rights or flaws in project investment approval formalities. 3. The injection conforms to the strategic plan of SDIC Power, and is contributive to the assets quality, financial conditions and profitability improvement of SDIC Power. In principle, the weighted ROAE of the assets proposed to be injected over the past three accounting years is not lower than 10% if such assets have been operating for three years, and not lower than 10% over the past two consecutive accounting years if such assets haven't been operating for three years. The asset-liability ratio of the assets proposed to be injected at the end of the last accounting year is not higher than 80%, except for SDIC Power voluntarily lowering the ROAE and asset-liability ratio. 4. The assets concerned are not the relevant assets, business or equity of the	Committed on: December 24, 2015. Commitment period: Within two years after the injection conditions are met.	Yes	Yes

II. Social Responsibilities √Applicable □Not applicable

For details, please refer to the 2021 Social Responsibility Report of the Company disclosed on the same day (April 29, 2022).

III. Consolidating the Achievements in Fighting against Poverty and Rural Vitalization √Applicable □Not applicable

In 2021, the Company implemented the decisions and plans of the central and local governments on consolidating achievements in the fight against poverty and in rural revitalization, practiced the overall rural revitalization plans in all its business, carefully performed the social responsibilities and assumed its responsibilities as a central enterprise. During the reporting period, the Company and various subsidiaries donated a total of RMB 9.9322 million, and the consumption assistance of trade union members and the purchase of canteens totaled RMB 4.0249 million.

(II) Environmental protection of companies other than key pollutant discharge units √Applicable □Not applicable

Administrative penalties due to environmental issues √Applicable □Not applicable
Entities of the Company other than the big pollutant discharging units didn't receive administrative punishments due to environment issues during the reporting period.
Other environmental information disclosed with reference to key pollutant discharge units √Applicable □Not applicable
All hydropower, wind power and solar power enterprises affiliated to the Company strictly carry out the environmental protection according to national and local regulations.
Reasons for failure to disclose other environmental information □Applicable √Not applicable

(III) Information conducive to ecological protection, pollution prevention, and performance of environmental responsibility √Applicable □Not applicable

The Company discloses the information contributive to environmental protection, pollution prevention and environmental responsibility performance in its social responsibility reports.

(IV) Measures taken to reduce carbon emission and their effects during the reporting period √Applicable □Not applicable

The Company takes the initiatives to respond to the "peak carbon dioxide emissions" and "carbon neutrality" goals and visions, and build a diversified clean energy supply system through an in-depth structural adjustment; vigorously advance consumption and emission reduction through technical transformation; closely trace the low-carbon technical development and application to update its environmental protection technologies; strengthen the organizational guarantee and improve the carbon assets management capacity, having achieved marked success in reducing carbon emission; and pay attention to M&A projects, integrate new M&A projects into environmental protection and production management system in time, and resolve potential risks.# Annual Report 2021

Commitment background

Commitments Type	Commitment party	Commitments Content	Commitment time and period	Any period of performance or not	Performed in a timely and strict manner or not
direct holding listed companies of SDIC other than the SDIC Power, and not the projects with coal-electricity integration business not independent. Such assets are helpful for SDIC Power to remain independent from the actual controller and its related persons in business, assets, finance, personnel, institution, etc.
5. The assets concerned are free from material debt repayment risk, or material contingent matters that could affect the guarantee, lawsuit or arbitration of the going concern.
6. Supervision requirements of securities regulatory institution according to appropriate laws, regulations and normative documents.

(II) If there is a profit forecast for the assets or projects of the Company, and the reporting period is still in the profit forecast period, the Company shall explain whether the assets or projects have reached the original profit forecast and the reasons for it

□ Reached □ Not reached √ Not applicable

(III) Completion status of performance commitment and its impact on goodwill impairment test

□ Applicable √ Not applicable

II. Non-operating Utilization of Funds by Controlling Shareholders and Other Related Parties during the Reporting Period

□ Applicable √ Not applicable

III. Illegal Guarantee

□ Applicable √ Not applicable

IV. Explanation of the Board of Directors of the Company on the "Audit Report of Non- standard Opinions" of Accounting Firms

□ Applicable √ Not applicable

V. Analysis and Explanation of the Company on Significant Changes in Accounting Policies, Accounting Estimates or Reasons and Impacts of Correcting Major Accounting Errors

(I) Analysis and explanation of the Company on reasons and impacts of changes in accounting policies and accounting estimates

√ Applicable □ Not applicable

Contents and reasons of accounting policy change	Approval procedure	Remarks
On December 7, 2018, the Ministry of Finance issued the Accounting Standards for Business Enterprises No. 21 - Leasing (CK [2018] No.35) (hereinafter referred to as the new leasing standards)	The 26th Meeting of the 11th Board of Directors and the 11th Meeting of the 11th Supervisory Committee of SDIC Power Holdings Co., Ltd.	Since January 1, 2021, the Group has implemented the new leasing standards, disclosed the financial statements according to the requirements of the standards, and adjusted the relevant items in the financial statements, without adjusting the information of comparable periods. Since January 1, 2021, the Company has carried out accounting treatment according to the new lease standards, and has chosen not to reassess whether the contracts existing before the first execution date are leases or include leases, and will not adjust the information in the comparable period according to the connection regulations.

(II) Analysis and explanation of the Company on reasons and impacts of correcting major accounting errors

□ Applicable √ Not applicable

(III) Communication with previous accounting firm

√ Applicable □ Not applicable

The Company has communicated with BDO China Shu Lun Pan CPAs (Special General Partnership) in advance on the newly hired accounting firm, and BDO has no objection to this. According to the relevant provisions of Auditing Standards for Chinese Certified Public Accountants No. 1153, ShineWing Certified Public Accountants LLP (Special General Partnership) communicated with BDO China Shu Lun Pan CPAs (Special General Partnership), and found no matters that may lead to BDO's inability to accept the appointment of the Company.

(IV) Other Explanations

□ Applicable √ Not applicable

VI. Appointment and Dismissal of Accounting Firm

Unit: RMB 10,000 Currency: RMB

Original accounting firm	Existing accounting firm
Name of domestic accounting firm	BDO China Shu Lun Pan Certified Public Accountants LLP
Remuneration for domestic accounting firm	413
Audit period of domestic accounting firm	9
Name of overseas accounting firm	Hong Kong BDO Certified Public Accountants limited
Remuneration for overseas accounting firm	270
Audit period of overseas accounting firm	1

Name	Remuneration
Accounting firm for internal control audit	ShineWing Certified Public Accountants LLP
Financial adviser
Recommendation party

Explanation on appointment and dismissal of accounting firm
√ Applicable □ Not applicable

According to the relevant regulations on the rotation of accounting firms, in order to ensure the independence and objectivity of the Company's audit work, and comprehensively consider the needs of the Company's business development and audit work, the Company hired ShineWing Certified Public Accountants LLP (Special General Partnership) to undertake the Company's financial report and internal control audit work in 2021.

Explanation for changing accounting firm during audit
□ Applicable √ Not applicable

VII. Delisting Risk

(I) Reasons for leading to delisting risk warning

□ Applicable √ Not applicable

(II) Countermeasures to be taken by the Company

□ Applicable √ Not applicable

(III) Conditions and reasons for termination of listing

□ Applicable √ Not applicable

VIII. Matters Concerning Bankruptcy and Restructuring

□ Applicable √ Not applicable

IX. Major Lawsuits and Arbitrations

□ Yes √ No

X. Suspected Violations, Penalties and Rectification of the Listed Company and its Directors, Supervisors, Senior Executives, Controlling Shareholders and Actual Controllers

□ Applicable √ Not applicable

XI. Credit Conditions of the Company and Its Controlling Shareholders and Actual Controllers during the Reporting Period

√ Applicable □ Not applicable

During the reporting period, the Company and its controlling shareholder and actual controller were free from failing to carry out valid court decisions, or pay any outstanding matured debts in large amounts.

XII. Material Related Party Transactions

(I) Related party transactions related to daily operations

1. Matters disclosed in the interim announcement and without progresses or changes in the follow-up implementation process

□ Applicable √ Not applicable

2. Matters disclosed in the temporary announcement, but with progresses or changes during the follow-up implementation process

√ Applicable □ Not applicable

It is estimated that in 2021, the average daily deposit balance (RMB) in SDIC Finance Co., Ltd. will not exceed RMB 10 billion, and the actual average daily deposit balance within the reporting period was RMB 5.643 billion; It is estimated that the average daily deposit balance (foreign currencies) in the year in Rongshi International Treasury Management Co., Ltd. will not exceed an amount equivalent to USD 1 billion, and the actually daily deposit balance within the reporting period was USD 15 million. It is estimated that the loan fund (RMB) transactions with SDIC Power and that its subsidiaries will not exceed RMB 15 billion, and the actual loan fund transactions within the reporting period was RMB 10.964 billion; It is estimated that the loan fund transactions (foreign currencies) with Rongshi International Treasury Management Co., Ltd. will not exceed an amount equivalent to USD 1 billion, and the actual loan fund transactions within the reporting period was USD 500 million. It is estimated that in 2021 the related-party transaction amount of procuring goods/services from SDIC and that its holding subsidiaries will not exceed RMB 800 million, and the actual related-party transaction amount within the reporting period was RMB 218 million; It is estimated that in 2021 the related-party transaction amount of providing goods/services to SDIC and its holding subsidiaries will not exceed RMB 400 million, and the actual related-party transaction amount within the reporting period was RMB 520 million.

3. Matters not disclosed in the interim announcement

□ Applicable √ Not applicable

(II) Related party transactions arising from the acquisition and sale of assets or equity

1. Matters disclosed in the interim announcement and without progresses or changes in the follow-up implementation process

√ Applicable □ Not applicable

Description of matters	Query index
SDIC Huanneng Electric Power Co., Ltd., a wholly- owned subsidiary of the Company, plans to transfer its 60% of equity in Newsky (China) Environment & Technology Co., Ltd. to the related party, China National Complete Plant Import and Export Group Corporation Limited, at RMB 419.92476 million.	Refer to the announcement released on the website of Shanghai Stock Exchange www.sse.com.cn, Announcement No.: 2021-095

2. Matters disclosed in the temporary announcement, but with progresses or changes during the follow-up implementation process

□ Applicable √ Not applicable

3. Matters not disclosed in the interim announcement

□ Applicable √ Not applicable

4. Matters concerning performance achievement during the reporting period should be disclosed if performance agreement is involved

□ Applicable √ Not applicable

(III) Significant related party transactions for joint external investments

1. Matters disclosed in the interim announcement and without progresses or changes in the follow-up implementation process

□ Applicable √ Not applicable

2. Matters disclosed in the temporary announcement, but with progresses or changes during the follow-up implementation process

□ Applicable √ Not applicable

3. Matters not disclosed in the interim announcement

□ Applicable √ Not applicable

(IV) Transactions of related creditor's rights and debts

1. Matters disclosed in the interim announcement and without progresses or changes in the follow-up implementation process

□ Applicable √ Not applicable

2.## (V) Financial transactions between the Company and the associated finance companies, or between the holding finance companies and related parties

√Applicable □Not applicable

1. Deposit business

√Applicable □Not applicable
Unit: RMB 10,000

Related Party	Affiliated relation	Maximum daily deposit amount	Deposit rate range	Beginning balance	Amount incurred in the current period	Ending balance	Total deposit in current period	Total withdrawal in current period
SDIC Finance Co., Ltd.	Fellow subsidiaries	1,000,000.00	0.35%- 1.50%	508,359.45	12,318,321.77	12,213,779.38	612,901.84
Total	/	/	/	508,359.45	12,318,321.77	12,213,779.38	612,901.84

2. Loan business

√Applicable □Not applicable
Unit: RMB 10,000

Related Party	Affiliated relation	Loan limit	Loan interest rate range	Beginning balance	Amount incurred in the current period	Ending balance	Total loan in current period	Total repayment in current period
SDIC Finance Co., Ltd.	Fellow subsidiaries	900,000.00	3.35%-4.75%	446,472.02	895,856.95	779,799.13	562,529.84
Total	/	/	/	446,472.02	895,856.95	779,799.13	562,529.84

3. Credit business or other financial business

□Applicable √Not applicable

4. Other descriptions

□Applicable √Not applicable

XIII. Material Contracts and Performance

(I) Trusteeship, contracting and leasing matters

1. Trusteeship

□Applicable √Not applicable

2. Contracting

□Applicable √Not applicable

3. Leasing

□Applicable √Not applicable

(II) Guarantee

√Applicable □Not applicable
Unit: RMB 10,000
Currency: RMB

Guarantor	Relation between guarantor and listed company	The guaranteed Amount of guarantee	Guarantee date (agreement signing date)	Commencement date of guarantee	Due date of guarantee	Guarantee type	Collateral (if any)	Whether the guarantee has been fulfilled	Whether the guarantee is overdue	Amount override	Counter- guarantee	Whether the related parties are guaranteed	Relationship of related parties
SDIC Power Headquarter of the Company	Inch Cape Offshore Limited	2,151.60	May 11, 2016	May 11, 2016	October 10, 2064	Guarantee for joint liabilities	No	No	No	No	Yes	Joint Ventures
Red Rock Power Limited	Wholly- owned subsidiary	Cloud Snurran AB	1,443.94	December 16, 2020	December 16, 2020	December 16, 2033	Guarantee for joint liabilities	No	No	No	No	Yes	Joint Ventures

Total amount incurred of the guarantee in the reporting period (excluding the guarantee to the subsidiaries) -2,454.61
Total balance of the guarantee at the end of reporting period (A) (excluding the guarantee to the subsidiaries) 3,595.54
Guarantee of the Company and its subsidiaries on subsidiaries
Total amount incurred of the guarantee to subsidiaries in the reporting period -47,875.29
Total balance of guarantee to subsidiaries at the end of reporting period (B) 181,536.64
Total guarantee amount (including the guarantee to subsidiaries)
Total guarantee amount (A+B) 185,132.18
Proportion of total guarantee amount to the Company net assets (%) 3.60
Wherein: Amount of the guarantee provided for shareholders, actual controllers and their related party (C)
Amount of debt guarantee provided directly or indirectly for the guaranteed with the asset- liability ratio exceeding 70% (D) 106,699.55
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) 106,699.55

Description of possible liability for satisfaction (the guarantee not yet due)

Guarantee description

(III) Cash asset management entrusted to others

1. Entrusted financial management

(1) General situation of entrusted financial management

□Applicable √Not applicable
Others
□Applicable √Not applicable

(2) Individual entrusted financial management

□Applicable √Not applicable
Others
□Applicable √Not applicable

(3) Provision for impairment of entrusted asset management

□Applicable √Not applicable

2. Entrusted loan

(1) General situation of entrusted loan

√Applicable □Not applicable
Unit: yuan
Currency: RMB

Type	Sources of funding	Incurred amount	Outstanding balance
Entrusted loan	Self-owned fund	415,000,000.00	1,229,000,000.00
Others
□Applicable √Not applicable

(2) Individual entrusted loans

√ Applicable □ Not Applicable
Unit: yuan
Currency: RMB

Trustee	Type of entrusted loan	Amount of Entrusted Loan	Start date of entrusted loan	Terminati on date of entrusted loan	Source of funds	Disposition of funds	Method of compensation determination	Annual yield	Expected income (if any)	Actual profits or losses	Actual recovery condition	Via legal procedu res or not
SDIC Finance Co., Ltd.	Entrusted loan	55,000,000.00	2019-5-7	2022-5-7	Self-owned fund	SDIC Honghe New Energy	Loan contract	5.1%	2,843,958.33	2,843,958.33	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	10,000,000.00	2019-6- 19	2022-6- 19	Self-owned fund	SDIC Honghe New Energy	Loan contract	5.1%	517,083.33	517,083.33	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	12,000,000.00	2019-9- 17	2022-9- 17	Self-owned fund	SDIC Honghe New Energy	Loan contract	5.1%	620,500.00	620,500.00	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	35,000,000.00	2019-11-6	2022-11-6	Self-owned fund	SDIC Honghe New Energy	Loan contract	5.1%	1,809,791.67	1,809,791.67	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	160,000,000.00	2019-1-9	2022-1-9	Self-owned fund	SDIC New Energy	Loan contract	5.1%	8,273,333.33	8,273,333.33	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	60,000,000.00	2019-3- 25	2022-3- 25	Self-owned fund	SDIC New Energy	Loan contract	5.1%	3,102,500.00	3,102,500.00	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	60,000,000.00	2019-4- 29	2022-4- 29	Self-owned fund	SDIC New Energy	Loan contract	5.1%	3,102,500.00	3,102,500.00	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	20,000,000.00	2019-10- 18	2022-10- 18	Self-owned fund	SDIC New Energy	Loan contract	5.1%	1,034,166.67	1,034,166.67	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	65,000,000.00	2020-7-2	2023-7-2	Self-owned fund	Toksun Trina Solar	Loan contract	4.3%	2,833,819.44	2,833,819.44	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	103,000,000.00	2020-1- 21	2023-1- 21	Self-owned fund	Dingbian Angli Photovoltai c	Loan contract	4.75%	4,960,451.39	4,960,451.39	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	190,000,000.00	2020-10- 28	2023-10- 28	Self-owned fund	Jingbian Zhiguang New Energy	Loan contract	4.3%	8,283,472.22	8,283,472.22	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	24,000,000.00	2020-10- 29	2023-10- 29	Self-owned fund	Chabei Photovoltaic	Loan contract	4.3%	1,046,333.33	1,046,333.33	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	1,000,000.00	2021-5- 14	2024-5- 14	Self-owned fund	Chabei Photovoltaic	Loan contract	4.3%	27,711.11	27,711.11	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	285,000,000.00	2021-1- 28	2022-1- 28	Self-owned fund	Jiuquan No.2 Wind Power	Loan contract	3.5%	9,365,416.67	9,365,416.67	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	12,000,000.00	2021-5- 10	2022-5- 10	Self-owned fund	Jiuquan No.2 Wind Power	Loan contract	3.5%	275,333.33	275,333.33	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	3,000,000.00	2021-6- 18	2022-6- 18	Self-owned fund	Jiuquan No.2 Wind Power	Loan contract	3.5%	57,458.33	57,458.33	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	10,000,000.00	2021-12- 17	2022-12- 17	Self-owned fund	Jiuquan No.2 Wind Power	Loan contract	3.5%	14,583.33	14,583.33	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	80,000,000.00	2021-6-7	2024-6-7	Self-owned fund	Gaopai Wind Power	Loan contract	4.3%	1,987,555.55	1,987,555.55	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	20,000,000.00	2020-6- 17	2023-6- 17	Self-owned fund	Jiuquan No.1 Wind Power	Loan contract	4.3%	871,944.44	871,944.44	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	15,000,000.00	2021-6-3	2022-6-3	Self-owned fund	Newsky Guizhou	Loan contract	4.25%	375,416.66	375,416.66	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	3,000,000.00	2021-9- 17	2022-9- 17	Self-owned fund	Newsky Guizhou	Loan contract	4.25%	37,541.66	37,541.66	Yes	Yes
SDIC Finance Co., Ltd.	Entrusted loan	6,000,000.00	2021-12- 16	2022-12- 16	Self-owned fund	Newsky Guizhou	Loan contract	4.25%	11,333.33	11,333.33	Yes	Yes

Others
□Applicable √Not applicable

(3) Provision for impairment of entrusted loans

□Applicable √Not applicable

3. Others

□Applicable √Not applicable

(IV) Other major contracts

□Applicable √Not applicable

XIV. Description of Other Major Matters that Have a Significant Impact on Investors' Value Judgment and Investment Decision

□Applicable √Not applicable

Section VII Changes in Shares and Shareholders

I. Changes in Share Capital

(I) Changes in shares

1. Changes in shares

Unit: share

	Before the change Quantity	Proportion (%)	Increase or decrease (+, -) New issue of shares	Subtotal Quantity	Proportion (%)
I. Shares with limited sales conditions	0	0	488,306,450	488,306,450	6.55
1. Shares held by state- owned legal persons	0	0	488,306,450	488,306,450	6.55
II. 2. Unrestricted Outstanding Shares	6,965,873,347	100	0	6,965,873,347	93.45
1. RMB ordinary shares	6,965,873,347	100	0	6,965,873,347	93.45
III. Total shares	6,965,873,347	100	488,306,450	7,454,179,797	100

√Applicable □Not applicable

The Company issued 488,306,450 A shares in a non-public manner on December 9, 2021 to the controlling shareholders of the Company, State Development & Investment Corp., Ltd., increasing the total share capital of the Company.

3. Effect of equity change on financial indicators including earnings per share and net asset per share in recent year and period (if any)

√Applicable □Not applicable

Due to the Company's non-public offering of A shares, the total share capital of the Company was changed from 6,965,873,347 to 7,454,179,797 shares. The increase in share capital diluted the Company's earnings per share during the reporting period and net assets per share at the end of the reporting period. Earnings per share in 2021 based on the weighted average number of shares were RMB 0.3202, and net assets per share at the end of the period were RMB 6.14.

4. Other contents to be disclosed as the Company deems it necessary or at the request of the securities regulators

□Applicable √Not applicable

(2) Changes in shares subject to sales restrictions

√Applicable □Not applicable

Name of shareholder	Number of shares subject to sale restrictions at the beginning of the year	Number of shares relieved from restrictions in the current year	Increase of shares subject to sale restrictions in the current year	Number of shares subject to sale restrictions at the end of the year	Reasons for restricted sales	Date for release of sale restrictions
State Development & Investment Corp., Ltd.	0	0	488,306,450	488,306,450	As the controlling shareholder of the Company, the shares of the Company obtained due to non-public offering shall not be transferred within 36 months from the date of completing the share registration procedures for the newly added shares	December 9, 2024
Total	0	0	488,306,450	488,306,450	/	/

Annual Report 2021 93 / 111

II. Securities Issuance and Listing

(I) Securities issuance as of the reporting period

√Applicable □Not applicable

Unit: share Currency: RMB

Type of securities	Issued on	Issue price (or interest rate)	Number issued	Listed date	Number of listed transactions approved	Transaction ending date
Stocks and derivatives
Ordinary share A share	November 25, 2021	RMB 7.44/share	488,306,450	December 9, 2021	488,306,450	-
Bonds (including enterprise bonds, corporate bonds and debt financing instruments of non-financial enterprises)
2021 Public Offering of Corporate Bonds to Eligible Investors by SDIC Power Holdings Co., Ltd. (Tranche 1)	April 14, 2021	3.70%	RMB 600 million	April 21, 2021	RMB 600 million	April 16, 2026
2021 Public Offering of Renewable Corporate Bonds to Eligible Investors by SDIC Power Holdings Co., Ltd. (Tranche 1)	August 6, 2021	3.14%	RMB 2 billion	August 24, 2021	RMB 2 billion	August 10, 2024
2021 Public Offering of Renewable Corporate Bonds to Professional Investors by SDIC Power Holdings Co., Ltd. (Tranche 2)	August 20, 2021	3.18%	RMB 1 billion	September 9, 2021	RMB 1 billion	August 24, 2024
2021 Public Offering of Renewable Corporate Bonds to Professional Investors by SDIC Power Holdings Co., Ltd. (Tranche 3)	November 9, 2021	3.24%	RMB 1 billion	November 16, 2021	RMB 1 billion	November 11, 2024

Instruction of securities issuing as of the reporting period (please specify securities with different interest rates in duration separately):
□Applicable √Not applicable

(II) Changes in the Company's total shares, shareholding structure, and asset-liability structure

√Applicable □Not applicable

During the reporting period, due to the Company's non-public offering of A shares, the total number of shares of the Company increased from 6,965,873,347 to 7,454,179,797. See (III) Analysis of assets and liabilities in Subsection “V. Main operations within the reporting period” in Section III Management Discussion and Analysis for details of the changes in the Company's asset-liability structure.

(III) Existing internal employee stocks

□Applicable √Not applicable

III. Shareholders and Actual Controllers

(I) Total number of shareholders

Total number of common shareholders as of the end of reporting period 84,941
Total number of common stockholders as of the end of previous month prior to the date of disclosure of annual report (Nos.) 84,684

(II) Shareholding of top ten shareholders and top ten floating stockholders (or unrestricted shareholders) at the end of the reporting period

Unit: share

Shares held by top ten shareholders

Name of shareholder (full name)	Increase or decrease during the reporting period	Shares held at the end of the period	Proportion (%)	Number of shares held with restrictions on sales	Status of pledge, marking or freezing	Status of shares
State Development & Investment Corp., Ltd.	488,306,450	3,825,443,039	51.32	488,306,450	None	State-owned legal person
China Yangtze Power Co., Ltd.	68,037,329	1,038,080,914	13.93	0	None	State-owned legal person
China Securities Finance Corporation Limited	0	203,657,917	2.73	0	None	State-owned legal person
Yangtze Power Investment Management Co., Ltd.	184,572,381	184,572,381	2.48	0	None	State-owned legal person
Hong Kong Securities Clearing Company Ltd.	-38,973,087	113,057,990	1.52	0	None	Foreign legal person
Citibank, National Association	-97,386,960	82,463,040	1.11	0	None	Foreign legal person
Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Juzhi Fund	0	75,687,364	1.02	0	None	Unknown
Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Huizhi Fund	0	54,988,628	0.74	0	None	Unknown
Gong Youhua	-903,927	49,755,073	0.67	0	None	Domestic natural person
National Social Security Fund Portfolio 109	-13,888,838	45,525,781	0.61	0	None	Unknown

Annual Report 2021 95 / 111

Shares held by top ten unrestricted shareholders

Name of shareholder	Quantity of unrestricted tradable shares held	Type and quantity of shares	Type	Quantity
State Development & Investment Corp., Ltd.	3,337,136,589	RMB ordinary shares	RMB ordinary shares	3,337,136,589
China Yangtze Power Co., Ltd.	1,038,080,914	RMB ordinary shares	RMB ordinary shares	1,038,080,914
China Securities Finance Corporation Limited	203,657,917	RMB ordinary shares	RMB ordinary shares	203,657,917
Yangtze Power Investment Management Co., Ltd.	184,572,381	RMB ordinary shares	RMB ordinary shares	184,572,381
Hong Kong Securities Clearing Company Ltd.	113,057,990	RMB ordinary shares	RMB ordinary shares	113,057,990
Citibank, National Association	82,463,040	RMB ordinary shares	RMB ordinary shares	82,463,040
Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Juzhi Fund	75,687,364	RMB ordinary shares	RMB ordinary shares	75,687,364
Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Huizhi Fund	54,988,628	RMB ordinary shares	RMB ordinary shares	54,988,628
Gong Youhua	49,755,073	RMB ordinary shares	RMB ordinary shares	49,755,073
National Social Security Fund Portfolio 109	45,525,781	RMB ordinary shares	RMB ordinary shares	45,525,781

Affiliate relations or actions in concert of the above shareholders

SDIC, the biggest shareholder of the Company, has no affiliated relation with the rest nine shareholders, and they are not persons acting in concert as stipulated in the Measures for the Administration of the Takeover of Listed Companies. China Yangtze Power Co., Ltd. and China Yangtze Power Investment Management Co., Ltd. are persons acting in concert; Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Juzhi Fund, and Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Huizhi Fund are persons acting in concert; Affiliated relations among other shareholders are unknown and whether other shareholders are persons acting in concert specified in the Measures for the Administration of the Takeover of Listed Companies is unknown.

Number of shares held by top ten shareholders with restricted conditions and the restricted conditions

√Applicable □Not applicable

Unit: share

S/N	Name of shareholders with trading limited condition	Quantity of shares held with restricted conditions	Tradable conditions for shares with restricted conditions	Restrictions on sale	Available time for trading	Number of new shares for listing and trading
1	State Development & Investment Corp., Ltd.	488,306,450	No transfer within 36 months from the date of completing the share registration procedures (December 9, 2021)	December 9, 2024	488,306,450

(III) Strategic investors or general legal persons being the top 10 shareholders due to rights issue

□Applicable √Not applicable

IV. Controlling Shareholder and Actual Controllers

(I) Information of controlling shareholders

1 Legal person

√Applicable □Not applicable

Name	State Development & Investment Corp., Ltd.
Person in charge or legal representative of the unit	Bai Tao
Date of establishment	April 14, 1995
Main business	Operating state-owned assets within the scope authorized by the State Council and developing investment related businesses; investment and investment management in energy, transportation, fertilizers, high-tech industries, financial services, consulting, guarantees, trade, biomass energy, elderly care industry, big data, healthcare, inspection and testing; asset management; economic information consultation; technology development and technical services.

Annual Report 2021 97 / 111(The enterprise may lawfully and independently choose business activities and develop business activities; business activities subject to approval in accordance with law shall be only operated as approved after the approval by competent authority; the Company shall not engage in any business activities prohibited or restricted by local municipal industrial policies.) Equity of other domestic and overseas listed companies controlling and holding shares during the reporting period Actually control and indirectly control nine other domestic and overseas listed companies: COMPLANT (000151.SZ), SDIC Capital (600061.SH), SDIC Zhonglu (600962.SH), Hualian International (0969.HK), Zhongxing Fruit (5EG), YPP (603013.SH), CHSR (000008.SZ), Meiya PICO (300188.SZ) and Tongyizhong (688722.SH).
2 Natural person □Applicable √Not applicable
3 Special explanations to absence of controlling shareholder □Applicable √Not applicable
4 Change in controlling shareholders in reporting period □Applicable √Not applicable
5 Block diagram for the property and control relations between the Company and the controlling shareholder √Applicable □Not applicable

(II) Actual controllers
1 Legal person √Applicable □Not applicable
Name: the State-owned Assets Supervision and Administration Commission of the State Council
2 Natural person □Applicable √Not applicable
State Development & Investment Corp., Ltd.
SDIC Power Holdings Co., Ltd.
Annual Report 2021 98 / 111
3 Special explanations to absence of actual controller □Applicable √Not applicable
4 Explanations to changes in the Company's control during the reporting period □Applicable √Not applicable
5 Block diagram for the property and control relations between the Company and its actual controller √Applicable □Not applicable
6 Actual controller controlling the Company through trust or other asset management methods □Applicable √Not applicable

(III) Introduction to other information on controlling shareholders and actual controllers □Applicable √Not applicable

V. Cumulative Number of Pledged Shares of the Company's Controlling Shareholder or the Largest Shareholder and Its Concerted Actors Accounts for More Than 80% of That of the Company's Shares □Applicable √Not applicable

VI. Other Corporation Shareholders with at Least 10% Shares √Applicable □Not applicable

Name of corporation shareholder	Person in charge or legal representative of the unit	Date of establishment	Organization Code	Registered capital	Main business or management actions
China Yangtze Power Co., Ltd.	Lei Mingshan	2002-11-04	71093040-5	22,741,859,230	Power production, operation and investment; power production technology consultation; overhaul and maintenance of hydropower projects.

VII. Information on Restricted Share Selling SDIC Power Holdings Co., Ltd. State Development & Investment Corp., Ltd. State-owned Assets Supervision and Administration Commission of the State Council Annual Report 2021 99 / 111 □Applicable √Not applicable

VIII. Specific Implementation of Share Repurchase in the Reporting Period □Applicable √Not applicable

Annual Report 2021 100 / 111

Section VIII Preferred Shares □Applicable √Not applicable

Annual Report 2021 101 / 111

Section IX Bonds

I. Enterprise Bonds, Corporate Bonds and Debt Financing Instruments of Non-Financial Enterprises √Applicable □Not applicable

(I) Enterprise bonds □Applicable √Not applicable

(II) Corporate bonds √Applicable □Not applicable

I. Basic information on corporate bonds

Unit: RMB 10,000

Name of bond	Abbreviation	Code	Issue date	Value date	due date	Bond balance	Interest rate (%)	Repayment of principal and interest	Trading floor	Investor adequacy arrangements (if any)	Trading mechanism	Whether there is a risk of termination of listing and trading
2019 Public Offering of Corporate Bonds to Eligible Investors by SDIC Power Holdings Co., Ltd. (Tranche 1)	19 SDIC Power	155457	June 11, 2019	June 12, 2019	June 12, 2029	120,000	4.59	The interest is paid once a year and the principal is returned in full upon maturity. The last installment of interest is paid together with the principal.	Shanghai Stock Exchange	For qualified investors	Bidding, quotation, inquiry and agreement trading	No
2020 Public Offering of Renewable Corporate Bonds to Eligible Investors by SDIC Power Holdings Co., Ltd. (Tranche 1)	20 Power Y1	163599	June 4, 2020	June 4, 2020	June 4, 2023	50,000	3.40	The interest is paid once a year and the principal is returned in full upon maturity. The last installment of interest is paid together with the principal.	Shanghai Stock Exchange	For qualified investors	Bidding, quotation, inquiry and agreement trading	No
2020 Public Offering of Renewable Corporate Bonds to Eligible Investors by SDIC Power Holdings Co., Ltd. (Tranche 2)	20 Power Y2	175432	November 30, 2020	November 30, 2020	November 30, 2022	120,000	4.06	The interest is paid once a year and the principal is returned in full upon maturity. The last installment of interest is paid together with the principal.	Shanghai Stock Exchange	For qualified investors	Bidding, quotation, inquiry and agreement trading	No
2021 Public Offering of Corporate Bonds to Eligible Investors by SDIC Power Holdings Co., Ltd. (Tranche 1)	21 SDIC Power	175985	April 14, 2021	April 16, 2021	April 16, 2026	60,000	3.70	The interest is paid once a year and the principal is returned in full upon maturity. The last installment of interest is paid together with the principal.	Shanghai Stock Exchange	For qualified investors	Bidding, quotation, inquiry and agreement trading	No
2021 Public Offering of Renewable Corporate Bonds to Eligible Investors by SDIC Power Holdings Co., Ltd. (Tranche 1)	21 Power Y1	188504	August 6, 2021	August 10, 2021	August 10, 2024	200,000	3.14	The interest is paid once a year and the principal is returned in full upon maturity. The last installment of interest is paid together with the principal.	Shanghai Stock Exchange	For qualified investors	Bidding, quotation, inquiry and agreement trading	No
2021 Public Offering of Renewable Corporate Bonds to Professional Investors by SDIC Power Holdings Co., Ltd. (Tranche 2)	21 Power Y2	188633	August 20, 2021	August 24, 2021	August 24, 2024	100,000	3.18	The interest is paid once a year and the principal is returned in full upon maturity. The last installment of interest is paid together with the principal.	Shanghai Stock Exchange	For qualified investors	Bidding, quotation, inquiry and agreement trading	No
2021 Public Offering of Renewable Corporate Bonds to Professional Investors by SDIC Power Holdings Co., Ltd. (Tranche 3)	21 Power Y3	188968	November 9, 2021	November 11, 2021	November 11, 2024	100,000	3.24	The interest is paid once a year and the principal is returned in full upon maturity. The last installment of interest is paid together with the principal.	Shanghai Stock Exchange	For qualified investors	Bidding, quotation, inquiry and agreement trading	No

Annual Report 2021 102 / 111

Name of bond	Abbreviation	Code	Issue date	Value date	due date	Bond balance	Interest rate (%)	Repayment of principal and interest	Trading floor	Investor adequacy arrangements (if any)	Trading mechanism	Whether there is a risk of termination of listing and trading
2021 Public Offering of Corporate Bonds to Eligible Investors by SDIC Power Holdings Co., Ltd. (Tranche 1)	21 SDIC Power	175985	April 14, 2021	April 16, 2021	April 16, 2026	60,000	3.70	The interest is paid once a year and the principal is returned in full upon maturity. The last installment of interest is paid together with the principal.	Shanghai Stock Exchange	For qualified investors	Bidding, quotation, inquiry and agreement trading	No

Measures of the Company to deal with the risk of bond listing termination □Applicable √Not applicable
Bond overdue □Applicable √Not applicable
Payment of bond interest during the reporting period √Applicable □Not applicable

Name of bond	Description of Interest Payment
16 SDIC Power	On October 18, 2021, the Company issued the Announcement on the Payment and Delisting of Principal and Interest of 2016 Corporate Bonds (Tranche 1) of SDIC Power Holdings Co., Ltd. in 2021. The registration date of the bonds is October 26, 2021, the payment date of principal and interest is October 27, 2021, and the delisting date of the bonds is October 27, 2021. The redemption and delisting of the principal and interest of this tranche of bonds has been completed on October 27, 2021.
16 SDIC Control	On November 9, 2021, the Company issued the Announcement on the Payment and Delisting of Principal and Interest of 2016 Corporate Bonds (Tranche 2) of SDIC Power Holdings Co., Ltd. in 2021. The registration date of the bonds is November 17, 2021, the payment date of principal and interest is November 18, 2021, and the delisting date of the bonds is November 18, 2021. The redemption and delisting of the principal and interest of this tranche of bonds has been completed on November 18, 2021.
18 Power Y1	On March 5, 2021, the Company issued the Announcement on the Payment and Delisting of 2021 Principal and Interest of Renewable Corporate Bonds (Tranche 1) Publicly Issued by SDIC Power Holdings Co., Ltd. to Qualified Investors in 2018. The registration date of the bonds is March 12, 2021, the payment date of principal and interest is March 15, 2021, and the delisting date of the bonds is March 15, 2021. The redemption and delisting of the principal and interest of this tranche of bonds has been completed on March 15, 2021.
18 Power Y2	On April 26, 2021, the Company issued the Announcement on the Payment and Delisting of 2021 Principal and Interest of Renewable Corporate Bonds (Tranche 2) Publicly Issued by SDIC Power Holdings Co., Ltd. to Qualified Investors in 2018. The registration date of the bonds is May 7, 2021, the payment date of principal and interest is May 10, 2021, and the delisting date of the bonds is May 10, 2021. The redemption and delisting of the principal and interest of this tranche of bonds has been completed on May 10, 2021.
18 Power Y3	On July 8, 2021, the Company issued the Announcement on the Payment and Delisting of 2021 Principal and Interest of Renewable Corporate Bonds (Tranche 1) Publicly Issued by SDIC Power Holdings Co., Ltd. to Qualified Investors in 2018.

Annual Report 2021 103 / 1111. Intermediaries providing services for bond issuance and duration business
□Applicable √Not applicable

Trigger and execution of the clauses of issuer's or investor's option and of investor protection
□Applicable √Not applicable
Intermediaries providing services for bond issuance and duration business
| Name of intermediaries | Address | Name of signing CPAs | Contact person | Phone |
| --- | --- | --- | --- | --- |
| CITIC Securities Co., Ltd. | CITIC Securities Building, No.48 Liang Ma Qiao Road, Chaoyang District, Beijing | | Han Bing | 010-60833034 |
| Essence Securities Co. Ltd. | Unit A02, 35F/28F, Anlian Mansion, No. 4018, Jintian Road, Futian District, Shenzhen | Li Shan, Jiang Yunsheng, Ma Chuang, Hu Zhuang | | 010-83321290 |
| China International Capital Corporation Limited | 27F/28F, China World Office 2, No. 1 Jianguomenwai Avenue, Chaoyang District, Beijing | Li Tianwan, Zhou Mengyu, Zhang Chong, Qiu Suofu, Guo Miaomiao, Jin Kailin, Lin lechen | | 010-65051166 |
| Tian Yuan Law Firm | 10/F, China Pacific Insurance Plaza, No. 28, Fengsheng Hutong, Xicheng District, Beijing, China | Chen Sheng, Zhou Qian | | 010-57763888 |
| BDO China Shu Lun Pan CPAs (Special General Partnership) | 4/F, No. 61 Nanjing East Road, Huangpu District, Shanghai | Zhao Bin, Wang Tianping, Pei Zhichao | Zhao Bin, Wang Tianping, Pei Zhichao | 010-56730013 |
| China Chengxin International Credit Rating Co., Ltd. (CCXI) | Room 113, Zone C, 1/F, Building 3, No. 7, Jiayi Industrial Zone, Industrial Park, Qingpu District, Shanghai | Sheng Lei, Wang Linbo | | 021-60330988 |
| Industrial and Commercial Bank of China Beijing Nanlishi Road Sub-branch | Building 5, Compound 1, Yuetan South Street, Xicheng District, Beijing | Li Chong | | 010-68030348 |
| Bank of China Beijing Xicheng Bub-branch | No. 5, Fuchengmenwai Street, Xicheng District, Beijing | Chen Danyang | | 010-68001587 |

Changes in the above intermediaries
□Applicable √Not applicable

Use of raised funds at the end of the reporting period
√Applicable □Not applicable
Unit: RMB 10,000

Name of bond	Total raised funds	Used amount	Operations of the special account for funds raised (if any)	Rectification of illegal use of raised funds (if any)	Whether it is consistent with the purpose, use plan and other agreements promised in the prospectus
2019 Public Offering of Corporate Bonds to Eligible Investors by SDIC Power Holdings Co., Ltd. (Tranche 1)	120,000	120,000	Good operation	None	Yes
2020 Public Offering of Renewable Corporate Bonds to Eligible Investors by SDIC Power Holdings Co., Ltd. (Tranche 1)	50,000	50,000	Good operation	None	Yes
2020 Public Offering of Renewable Corporate Bonds to Eligible Investors by SDIC Power Holdings Co., Ltd. (Tranche 2)	120,000	120,000	Good operation	None	Yes
2021 Public Offering of Corporate Bonds to Eligible Investors by SDIC Power Holdings Co., Ltd. (Tranche 1)	60,000	60,000	Good operation	None	Yes
2021 Public Offering of Renewable Corporate Bonds to Eligible Investors by SDIC Power Holdings Co., Ltd. (Tranche 1)	200,000	200,000	Good operation	None	Yes
2021 Public Offering of Renewable Corporate Bonds to Professional Investors by SDIC Power Holdings Co., Ltd. (Tranche 2)	100,000	100,000	Good operation	None	Yes
2021 Public Offering of Renewable Corporate Bonds to Professional Investors by SDIC Power Holdings Co., Ltd. (Tranche 3)	100,000	100,000	Good operation	None	Yes

Progress and operational benefits of raised funds used for construction projects
□Applicable √Not applicable

Explanation on changing the use of the above-mentioned bonds raised during the reporting period
□Applicable √Not applicable

Other description
□Applicable √Not applicable

Adjustment of credit rating results
□Applicable √Not applicable

Other description
□Applicable √Not applicable

Execution and change of guarantee, debt repayment plans and other debt repayment protection measures during the reporting period and their effect
□Applicable √Not applicable
Other information on corporate bonds
□Applicable √Not applicable

(III) Debt financing instruments for non-financial enterprises in interbank bond market
√Applicable □Not applicable

Basic information on debt financing instruments of non-financial enterprises
Unit: RMB 10,000
Currency: RMB

Bond name	Abbreviation	Code	Issue date	Value Date	Expiry date	Bond balance	Interest rate (%)	Method of principal repayment and interest payment	Trading place	Adequacy arrangement by investors (if any)	Trading mechanisms	Risk of termination of listing
2021 Medium- term Notes of (First Issue) SDIC Power Holdings Co., Ltd.	21 SDIC Power MTN001	102101280	2021-7- 12	2021-7- 14	2024-7- 13	100,000.00	3.17%	Interest is paid annually, with the last installment paid with the principal	Inter- bank Bonds	For accredited investors	Bidding, quotation, inquiry, and agreed transactions	No

Measures of the Company to deal with the risk of bond listing termination
□Applicable √Not applicable

Bond overdue
□Applicable √Not applicable

Payment of bond interest during the reporting period
□Applicable √Not applicable

Trigger and execution of the clauses of issuer's or investor's option and of investor protection
□Applicable √Not applicable
Intermediaries providing services for bond issuance and duration business
| Name of intermediaries | Address | Name of signing CPAs | Contact person | Phone |
| --- | --- | --- | --- | --- |
| ICBC Limited | No. 55, Fuxingmennei Dajie, Xicheng District, Beijing | Jiang Chen | | 010-81011708 |
| China Merchants Bank Co., Ltd. | No. 2016, Shennan Avenue, Futian District, Shenzhen | Zhang Wei | | 0755-89278573 |
| BDO China Shu Lun Pan CPAs (Special General Partnership) | 4/F, No. 61 Nanjing East Road, Huangpu District, Shanghai | Zhang Fan, Yan Baorui, Zhao Bin, Wang Tianping, Pei Zhichao | Shi Youyou | 13811487398 |
| Beijing Guantao Law Firm | 18/F, Tower B, Xinsheng Plaza, No. 5, Finance Street, Xicheng District, Beijing | Tan Weihong | | 010-66578066 |
| Dagong Global Credit Rating Co., Ltd. | 3/F, Tower A, China Foreign Language Mansion, No. 89, West Third Ring Road North, Haidian District, Beijing | Wang Peng | | 010-67413300 |

Changes in the above intermediaries
□Applicable √Not applicable

Use of raised funds at the end of the reporting period
√Applicable □Not applicable
Unit: RMB 10,000

Name of bond	Total raised funds	Used amount	Unused amount	Operations of the special account for funds raised (if any)	Rectification of illegal use of raised funds (if any)	Whether it is consistent with the purpose, use plan and other agreements promised in the prospectus
2021 Medium- Term Note Tranche 1 of SDIC Power Holdings Co., Ltd.	100,000.00	100,000.00	-	In good operation	None	Yes

Progress and operational benefits of raised funds used for construction projects
□Applicable √Not applicable

Explanation on changing the use of the above-mentioned bonds raised during the reporting period
□Applicable √Not applicable

Adjustment of credit rating results
□Applicable √Not applicable

Other description
□Applicable √Not applicable

Execution and change of guarantee, debt repayment plans and other debt repayment protection measures during the reporting period and their effect
□Applicable √Not applicable
Other information on debt financing instruments of non-financial enterprises
□Applicable √Not applicable

(IV) Loss within scope of the Consolidated Financial Statements during reporting period of the Company exceeding 10% of the net assets at the end of last year
□Applicable √Not applicable

(V) Overdue situation of interest-bearing debts other than bonds at the end of the reporting period
□Applicable √Not applicable

(VI) Impact of violations of laws and regulations, Company's articles of association, information disclosure affairs management system as well as stipulations or commitments in the bond prospectus during the reporting period on the rights and interests of bond investors
□Applicable √Not applicable

(VII) Accounting data and financial indicators of the Company for recent 2 years as of the end of reporting period
√Applicable □Not applicable
Unit: yuan
Currency: RMB

Major indexes	2021	2020	Increase & decrease in the current period over last year (%)	Reasons
Net profit after deducting non- recurring profits and losses

For the Consolidated Financial Statements together with Independent Auditor’s Report for the year ended 31 December 2021, please refer to the attached pages.

II. Convertible Corporate Bonds

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□Applicable
√Not applicable

Annual Report 2021
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Metric	2021	2020	Change (%)
Profit	4,972,506,779.59	9,036,065,276.64	-44.97

Profit declined year-on-year due to the significant increase in coal cost.

Metric	2021	2020	Change (%)
Liquidity ratio	0.57	0.58	-1.14
Quick ratio	0.54	0.55	-2.46
Assets-liabilities ratio (%)	63.52%	63.92%	-0.63
EBITDA-total debts ratio	12.70%	15.82%	-19.73
Times interest earned	2.00	2.86	-30.18
Times of cash interest earned	3.87	4.89	-20.88
EBITDA interest protection multiples	3.59	4.17	-13.85
Loan repayment rate (%)	100	100	-
Interest coverage rate (%)	100	100	-

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SDIC Power Holdings Co., LTD — Annual Report 2021

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Section II Company Profile and Key Financial Indicators

II. Contacts and Contact Information

III. Basic Information

IV. Information Disclosure and Preparation

V. Company Shares

VI. Other Relevant Information

VII. Key Accounting Data and Financial Indicators for the Past Three Years

(I) Key accounting data

(II) Key financial indicators

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

(I) Difference arising from the net profit and net assets attributable to shareholders of the Listed Company in the financial statements disclosed simultaneously pursuant to the International Accounting Standards and the PRC GAAP Standards: □ Applicable √ Not applicable

(II) Difference arising from the net profit and net assets attributable to shareholders of the Listed Company in the financial statements disclosed simultaneously pursuant to the foreign accounting standards and the PRC GAAP Standards: □ Applicable √ Not applicable

(III) Explanation on the difference between domestic and foreign accounting standards: □ Applicable √ Not applicable

IX. Quarterly Key Financial Data in 2021

X. Statement of Non-recurring Profit or Loss

XI. Items Measured by Fair Value

XII. Others

Section III Management Discussion and Analysis

I. Discussion and Analysis of Operations

I. Business Overview

(I) Main operating results

(II) Business development

(III) Operation management

(IV) Production and infrastructure

II. Industry of the Company during the Reporting Period

(I) Main business of the Company

(II) Operation mode of the Company

(III) Position of the Company in the industry

IV. Analysis of Core Competitiveness during the Reporting Period

(I) Absolute control over Yalong Hydro

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

(III) Professional manager system established to maximize the Company's management vitality

(IV) Mature investment and management experience in the power industry at home and abroad

(I) Analysis of principal businesses

1. Analysis on Changes of Relevant Items in Income Statement and Cash Flow Statement

2. Analysis on revenue and costs

(1) Performance of principal businesses by industry, by product, by region and by sales model

Description of information on principle businesses by industry, by product and by region

Power industry operational information analysis

4. Analysis of generating capacity

5. Information on the capital expenditures

6. Power market transaction

7. Operation of power sales business

8. Other descriptions

(V) Analysis on Investment

Overall Analysis of External Equity Investments

① Overall situation

② Information on invested companies

③ The holding equity of unlisted financial enterprises

④ The holding equity of other listed companies

1. Major equity investment

VI. Discussion and Analysis on the Future Development of the Company

(I) Industry structure and trends

(II) Development strategy of the Company

(III) Operation plan

1. Annual investment expenditure plan.

2. Annual financing plan.

(IV) Possible risks

1. Electric power market risk

2. Tariff risk

3. Coal price risk

4. The yield of new energy projects is in down turn

5. Environmental risk

6. Financial risk

SDIC Power Holdings Co., LTD Annual Report 2021