China Power International Holding

THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION
If you are in any doubt as to any aspect of this circular or as to the action to be taken, you should consult your
stockbroker or other registered dealer in securities, bank manager, solicitor, professional accountant or other
professional adviser.
If you have sold or transferred all your shares in China Power International Development Limited, you should at
once hand this circular together with the accompanying form of proxy to the purchaser or other transferee or to the
bank, stockbroker or other agent through whom the sale was effected for transmission to the purchaser or transferee.
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility
for the contents of this circular, make no representation as to its accuracy or completeness and expressly disclaim
any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the
contents of this circular.
CHINA POWER INTERNATIONAL DEVELOPMENT LIMITED

中國電力國際發展有限公司
(incorporated in Hong Kong with limited liability)
(Stock Code: 2380)
(1) MAJOR AND CONNECTED TRANSACTIONS
IN RELATION TO THE ACQUISITIONS
AND
(2) REVISION OF ANNUAL CAP FOR
CONTINUING CONNECTED TRANSACTIONS
Joint Financial Advisers to the Company
Independent Financial Adviser to the Independent Board Committee

and the Independent Shareholders
A letter from the Board is set out on pages 6 to 22 of this circular. A letter from the Independent Board Committee
containing its recommendation to the Independent Shareholders is set out on page 23 of this circular. A letter from
Gram Capital, the Independent Financial Adviser, containing its advice to the Independent Board Committee and the
Independent Shareholders is set out on pages 24 to 48 of this circular.
A notice dated 18 August 2023 convening a GM to be held on Wednesday, 6 September 2023 at 10:30 a.m. at
Salon 5, JW Marriott Ballroom, 3/F, JW Marriott Hotel Hong Kong, Pacific Place, 88 Queensway, Hong Kong is set
out at the end of this circular on pages GM-1 to GM-3. Whether or not you are able to attend the GM, you are
requested to complete the form of proxy accompanying the notice of the GM in accordance with the instructions
printed thereon and return it (i) to the Company’s share registrar, Computershare Hong Kong Investor Services
Limited at 17M Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong, or (ii) electronically via the
Company’s email address at eproxy@chinapower.hk not less than 48 hours before the time appointed for the holding
of the GM or any adjournment thereof (as the case may be). Submission of the form of proxy will not preclude any
member of the Company from attending the GM or any adjournment thereof and voting in person if such member so
wishes and in such event, the form of proxy will be deemed to be revoked.
Please note that there will be NO serving of any refreshments or beverages and NO distribution of gifts,
souvenirs or bakery vouchers at the GM.
18 August 2023
CONTENTS
Page
DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
LETTER FROM THE BOARD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
LETTER FROM THE INDEPENDENT BOARD COMMITTEE . . . . . . . . . . . . . . . . 23
LETTER FROM GRAM CAPITAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
APPENDIX I — Financial Information of the Group . . . . . . . . . . . . . . . . . . . . . I-1
APPENDIX IIA — Accountants’ Report on Beijing Company . . . . . . . . . . . . . . . IIA-1
APPENDIX IIB — Accountants’ Report on Heilongjiang Company . . . . . . . . . IIB-1
APPENDIX IIC — Accountants’ Report on Fujian Company . . . . . . . . . . . . . . . . IIC-1
APPENDIX IID — Accountants’ Report on Shanxi Company . . . . . . . . . . . . . . . IID-1
APPENDIX IIE — Accountants’ Report on Jieyang Company . . . . . . . . . . . . . . . IIE-1
APPENDIX III — Management Discussion and Analysis of the

Target Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-1
APPENDIX IV — Unaudited Pro Forma Financial Information of the

Enlarged Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-1
APPENDIX V — Summary of Asset Appraisal Reports . . . . . . . . . . . . . . . . . . . . V-1
APPENDIX VI — Letter from the Joint Financial Advisers

on Profit Forecast of the Target Companies . . . . . . . . . . . VI-1
APPENDIX VII — Letter from Ernst & Young on Profit Forecast

of the Target Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VII-1
APPENDIX VIII — General information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VIII-1
NOTICE OF THE GENERAL MEETING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GM-1
Independent Shareholders are advised to read carefully the notice of the General Meeting and
its accompanying notes as set out at the end of this circular.
–i–
DEFINITIONS
In this circular, unless the context otherwise requires, the following expressions shall have the
meanings set out below:
‘‘Acquisitions’’ Acquisition I and Acquisition II (individually the Acquisition where the

context requires)
‘‘Acquisition Agreements’’ Agreement I and Agreement II (individually the Acquisition Agreement
where the context requires)
‘‘Acquisition I’’ the proposed acquisition of Equity Interests I by the Company pursuant to
Agreement I
‘‘Acquisition II’’ the proposed acquisition of Equity Interests II by the Company pursuant
to Agreement II
‘‘Agreement I’’ the conditional sale and purchase agreement dated 26 July 2023 entered
into by the Company and SPIC in relation to Acquisition I
‘‘Agreement II’’ the conditional sale and purchase agreement dated 26 July 2023 entered
into by the Company, SPIC Guangdong and CPCEC in relation to
Acquisition II
‘‘Announcement’’ the announcement of the Company dated 26 July 2023 regarding, among
other things, the Acquisitions
‘‘Appraisal Benchmark the date on which the appraised value of the Target Companies are
Date’’ determined as set out in the Asset Appraisal Reports, which is 31 March
2023
‘‘Asset Appraisal Reports’’ (i) the asset appraisal reports prepared by PCAA in relation to Beijing
Company, Heilongjiang Company and Shanxi Company; and
(ii) the asset appraisal reports prepared by Zhongtianhua in relation to
Fujian Company and Jieyang Company,
in each case as filed in accordance with the relevant regulations as
promulgated by the SASAC
‘‘associates’’ has the meaning given to it under the Listing Rules
‘‘Beijing Company’’ SPIC Beijing Electric Power Co., Ltd (國家電投集團北京電力有限公司),
a company incorporated in the PRC with limited liability and a non
wholly-owned subsidiary of SPIC, together with its subsidiaries from time
to time (excluding the Reorganization Equity Interests to which Beijing
Company relates)
‘‘Board’’ the board of Directors of the Company
‘‘CBIRC’’ China Banking and Insurance Regulatory Commission* (中國銀行保險監
督管理委員會), which was replaced by NAFR in May 2023
‘‘CITICS’’ CITIC Securities (Hong Kong) Limited (中信證券(香港)有限公司), one
of the Company’s joint financial advisers
‘‘Company’’, ‘‘China China Power International Development Limited (中國電力國際發展有限
Power’’ or ‘‘Purchaser’’ 公司), a company incorporated in Hong Kong with limited liability whose
shares are listed on the Main Board of the Stock Exchange
‘‘Completion’’ with respect to each of the Equity Interests, after all the conditions
precedent to the relevant Acquisition Agreement have been satisfied or
waived (if applicable), the completion of the SAMR filings for the change
in business registration in relation to the transfer of the respective Equity
Interests in the relevant Target Company pursuant to the relevant
Acquisition Agreement
–1–
DEFINITIONS
‘‘Completion Date’’ with respect to each of the Equity Interests, the date of Completion
‘‘connected person’’ has the meaning ascribed to it under the Listing Rules
‘‘controlling shareholder’’ has the meaning ascribed to it under the Listing Rules
‘‘CPCEC’’ or ‘‘Seller’’ as China Power Complete Equipment Co., Ltd. (中國電能成套設備有限公
to Agreement II 司), a company incorporated in the PRC with limited liability and a
wholly-owned subsidiary of SPIC, thus an associate of SPIC and a
connected person of the Company
‘‘CPDL’’ China Power Development Limited, a company incorporated in the British
Virgin Islands with limited liability, a substantial shareholder of the
Company and a subsidiary of CPI Holding, thus an associate of SPIC and
a connected person of the Company
‘‘CPI Holding’’ China Power International Holding Limited, a company incorporated in
Hong Kong with limited liability, the controlling shareholder of the
Company and a wholly-owned subsidiary of SPIC, thus an associate of
SPIC
‘‘CPNE’’ China Power (New Energy) Holdings Limited, a company incorporated in
Hong Kong with limited liability, a substantial shareholder of the
Company and an indirect non-wholly owned subsidiary of SPIC, thus an
associate of SPIC and a connected person of the Company
‘‘CSCI’’ China Securities (International) Corporate Finance Company Limited (中
信建投（國際）融資有限公司), one of the Company’s joint financial
advisers
‘‘Director(s)’’ director(s) of the Company
‘‘Enlarged Group’’ the Group as enlarged by the Acquisitions (assuming the Acquisitions
have been completed)
‘‘Equity Interests’’ Equity Interests I and Equity Interests II
‘‘Equity Interests I’’ 55.15% equity interest in Beijing Company, 100% equity interest in
Fujian Company, Heilongjiang Company and Shanxi Company
‘‘Equity Interests II’’ 100% equity interest in Jieyang Company
‘‘Existing FS Annual Cap’’ the maximum daily balance of deposits (including accrued interests)
placed by the Group with SPIC Financial during the term of the FS
Framework Agreement as set out in the announcement of the Company
dated 6 May 2022
‘‘FS Framework the framework agreement dated 6 May 2022 entered into between the
Agreement’’ or Company and SPIC Financial for provision of financial services by SPIC
‘‘Financial Services Financial to the Group
Framework Agreement’’
‘‘FS Framework Agreement the supplemental agreement dated 17 August 2023 entered into between
Supplemental the Company and SPIC Financial to amend the Existing FS Annual Cap
Agreement’’ set out in the FS Framework Agreement to the Revised FS Annual Cap
‘‘Fujian Company’’ SPIC Fujian Electric Power Co., Ltd (國家電投集團福建電力有限公司), a
company incorporated in the PRC with limited liability and a directly
to time (excluding the Reorganization Equity Interests to which Fujian
Company relates)
–2–
DEFINITIONS
‘‘General Meeting’’ or the general meeting of the Company to be convened to consider and, if
‘‘GM’’ thought fit, approve, among other things, the Acquisitions, the Revised FS
Annual Cap and the transactions contemplated thereunder, currently
scheduled to take place on 6 September 2023
‘‘Group’’ the Company and its subsidiaries from time to time
‘‘Heilongjiang Company’’ SPIC Heilongjiang Power Co., Ltd.* (國家電投集團黑龍江電力有限公
司), a company incorporated in the PRC with limited liability and a
directly wholly-owned subsidiary of SPIC, together with its subsidiaries
from time to time
‘‘HK$’’ Hong Kong dollars, the lawful currency of Hong Kong
‘‘Hong Kong’’ Hong Kong Special Administrative Region of the PRC
‘‘Independent Board the committee of all the independent non-executive Directors, consisting
Committee’’ of Mr. LI Fang, Mr. YAU Ka Chi and Mr. HUI Hon Chung, Stanley,
which has been formed to advise the Independent Shareholders in respect
of the Acquisitions and the Revised FS Annual Cap
‘‘Independent Financial Gram Capital Limited (嘉林資本有限公司), a licensed corporation to
Adviser’’ or ‘‘Gram carry out Type 6 (advising on corporate finance) regulated activity under
Capital’’ the SFO, being the independent financial adviser to the Independent Board
Committee and the Independent Shareholders in respect of the
Acquisitions and the Revised FS Annual Cap
‘‘Independent Shareholder(s) of the Company other than SPIC and its associates
Shareholder(s)’’
‘‘Jieyang Company’’ Jieyang Qianzhan Wind Power Co., Ltd.* (揭陽前詹風電有限公司), a
company incorporated in the PRC with limited liability and owned as to
95% by SPIC Guangdong and 5% by CPCEC, respectively
‘‘Joint Financial Advisers’’ CSCI and CITICS
‘‘Latest Practicable Date’’ 17 August 2023
‘‘Listing Rules’’ the Rules Governing the Listing of Securities on The Stock Exchange of
Hong Kong Limited
‘‘MW’’ megawatt, that is one million watts. The attributable installed capacity of
a power plant is generally expressed in MW
‘‘NAFR’’ The National Administration of Financial Regulation* (國家金融監督管理
總局)
‘‘PBOC’’ The People’s Bank of China* (中國人民銀行)
‘‘PCAA’’ Pan-China Assets Appraisal Co., Ltd.* (北京天健興業資產評估有限公
司), an independent and qualified PRC appraiser
‘‘percentage ratio’’ has the meaning ascribed to it under the Listing Rules
‘‘PRC’’ or ‘‘China’’ the People’s Republic of China
‘‘Pre-Acquisition the completion of the disposal of the Reorganization Equity Interests by
Reorganization’’ Beijing Company and Fujian Company pursuant to the Reorganization
Agreements
–3–
DEFINITIONS
‘‘Put Option’’ the right of the Company under the Acquisition Agreements to require the
Seller(s) or any third party appointed by the Seller(s) to buy back the
relevant Equity Interests under specific circumstances, further details of
which are set out headed in the section ‘‘Put Option under the Acquisition
Agreements’’ in this circular
‘‘Reorganization the conditional sale and purchase agreements entered or to be entered into
Agreements’’ by Beijing Company and Fujian Company and the respective purchasers in
relation to the disposal of the Reorganization Equity Interests by Beijing
Company and Fujian Company
‘‘Reorganization Equity the equity interest of:
Interests’’
(i) 100% in Fuxin Shenhua Xiehe Wind Power Generation Co., Ltd.*
(阜新申華協合風力發電有限公司);
(ii) 70% in Beijing Jingfeng Guowei Combined Energy Co., Ltd.* (北京
京豐國威綜合能源有限公司);
(iii) 100% in Shanxi Zhongshengda Energy Investment Co., Ltd.* (山西
中盛達能源投資有限公司);
(iv) 64.09% in Mianchi Xiangfeng New Energy Co., Ltd.* (澠池祥風新
能源有限公司);
(v) 100% in China Power Investment Corporation Qingyun Photovoltaic
Power (Lianyungang) Co., Ltd.* (中電投青雲光伏發電（連雲港）
有限公司);
(vi) 100% in Zhangzhou Jiaomei SPIC New Energy Development Co.,
Ltd.* (漳州角美國電投新能源開發有限公司);
(vii) 100% in State Power Investment Corporation Pingtan Energy Co.,
Ltd.* (國家電投集團平潭能源有限公司) (‘‘SPIC Pingtan’’); and
(viii) 60% in Nanping Ronghua SPIC New Energy Co., Ltd.* (南平市榮華
國電投新能源有限公司) (a non-wholly owned subsidiary of SPIC
Pingtan which is directly held as to 60% by SPIC Pingtan).
All of the above companies are incorporated in the PRC
‘‘Revised FS Annual Cap’’ the proposed revised maximum daily balance of deposits (including
accrued interests) placed by the Group (including the Target Companies)
with SPIC Financial during the term of the FS Framework Agreement
disclosed in this circular
‘‘RMB’’ Renminbi, the lawful currency of the PRC
‘‘SAMR’’ subordinate units of State Administration for Market Regulation (國家市
場監督管理總局) of the PRC
‘‘SASAC’’ the State-owned Assets Supervision and Administration Commission of
the State Council of the PRC* (中華人民共和國國務院國有資產監督管理
委員會)
‘‘Settlement of the the settlement of the consideration by the Company after the Completion
Acquisitions’’ as required under the Acquisition Agreements (or, where the context
requires, Agreement I or Agreement II)
‘‘SFO’’ the Securities and Futures Ordinance (Cap.571 of the Laws of Hong
Kong)
–4–
DEFINITIONS
‘‘Shanxi Company’’ SPIC Shanxi Power Co., Ltd.* (國家電投集團山西電力有限公司), a

company incorporated in the PRC with limited liability and a directly
to time
‘‘Share(s)’’ the ordinary share(s) of the Company
‘‘Shareholder(s)’’ person(s) whose name(s) appear on the register of members as registered
holder(s) of Share(s)
‘‘SPIC’’ or ‘‘Seller’’ as to State Power Investment Corporation Limited* (國家電力投資集團有限公
Agreement I 司), the ultimate controlling shareholder of the Company, a wholly State-
owned enterprise established by the approval of the State Council of the
PRC* (中華人民共和國國務院)
‘‘SPIC Finance HK’’ SPIC International Finance (Hong Kong) Company Limited, a company
incorporated in Hong Kong with limited liability and a wholly-owned
subsidiary of SPIC, thus an associate of SPIC
‘‘SPIC Financial’’ SPIC Financial Company Limited* (國家電投集團財務有限公司), a
company incorporated in the PRC with limited liability, a wholly-owned
subsidiary of SPIC and a non-bank financial institution approved by the
CBIRC
‘‘SPIC Group’’ SPIC and its subsidiaries from time to time
‘‘SPIC Guangdong’’ or SPIC Guangdong Electric Power Co., Ltd.* (國家電投集團廣東電力有限
‘‘Seller’’ as to 公司), a company incorporated in the PRC with limited liability and an
Agreement II indirectly wholly-owned subsidiary of SPIC, thus an associate of SPIC
and a connected person of the Company
‘‘Stock Exchange’’ The Stock Exchange of Hong Kong Limited
‘‘subsidiary(ies)’’ has the meaning ascribed to it under the Listing Rules
‘‘substantial shareholder’’ has the meaning ascribed to it under the Listing Rules
‘‘Target Companies’’ Target Companies I and Target Company II (individually the Target
Company where the context requires)
‘‘Target Companies I’’ Beijing Company, Heilongjiang Company, Fujian Company and Shanxi
Company, each of which a Target Company I
‘‘Target Company II’’ Jieyang Company
‘‘Zhongtianhua’’ Beijing Zhongtianhua Assets Appraisal Co., Ltd.* (北京中天華資產評估
有限責任公司), an independent and qualified PRC appraiser
* English or Chinese translation, as the case may be, is for identification only
This circular contains translation between Renminbi and Hong Kong dollars at RMB0.91 to
HK$1.00. The translation shall not be taken as representation that the Renminbi could actually be
converted into Hong Kong dollars at that rate, or at all.
–5–
LETTER FROM THE BOARD

(Stock Code: 2380)
Executive Directors: Registered Office:
HE Xi (Chairman of the Board) Suite 6301, 63/F, Central Plaza
GAO Ping (President) 18 Harbour Road,
Wanchai, Hong Kong
Non-executive Directors:
ZHOU Jie
HUANG Qinghua
Independent non-executive Directors:

LI Fang
YAU Ka Chi
HUI Hon Chung, Stanley
18 August 2023
To the Shareholders
Dear Sir or Madam,

AND
I. INTRODUCTION
The Acquisitions
Reference is made to the Announcement in relation to the Acquisitions.
On 26 July 2023, the Company entered into the Acquisition Agreements pursuant to which,
the Company has conditionally agreed to acquire (i) Equity Interests I from SPIC; and (ii) Equity
Interests II from SPIC Guangdong and CPCEC, respectively.
The Target Companies are principally engaged in clean energy power generation, mainly
wind power and photovoltaic power with power stations located in 21 provinces in the PRC and
with total installed capacity of 7,531.7MW in operation. The Acquisitions will accelerate the
positioning of the Company as the clean energy flagship listed subsidiary of SPIC, further promote
the implementation of the Company’s new development strategy of transforming itself into a
leading clean and low-carbon energy provider (details of which are set out in the announcement of
the Company dated 22 October 2021), committing to promote its high quality development,
continuously optimize its asset structure and geographical layout, and improve the quality of its
assets and its profitability.
–6–
Prior to Completion of the Acquisitions, two of the Target Companies (Beijing Company and
Fujian Company) should complete the Pre-Acquisition Reorganization.
The charts below set out the change in shareholding structure of the Target Companies.
(i) After the Pre-Acquisition Reorganization and immediately before Completion of the
Acquisitions:
SPIC
Indirectly holds Directly holds Directly holds Indirectly holds Directly

61.06% 55.15% 100% 100% holds 100%
The Beijing Heilongjiang Company, SPIC

CPCEC
Company Company Fujian Company and Guangdong
Shanxi Company
Directly Directly
holds 95% holds 5%
Jieyang
Company
(ii) After Completion of the Acquisitions
SPIC
Indirectly Indirectly Directly

holds 61.06% holds 100% holds 100%
The SPIC
CPCEC
Company Guangdong
Directly holds Directly holds Directly holds Directly holds Directly holds
55.15% 100% 100% 100% 100%
Beijing Heilongjiang Fujian Shanxi Jieyang

Company Company Company Company Company
Revision of Annual Cap
Reference is made to the announcement of the Company dated 17 August 2023 in relation to
the revision of annual cap to continuing connected transactions of the Company. Reference is also
made to the announcement of the Company dated 6 May 2022 and the circular dated 18 May 2022
of the Company in relation to the Financial Services Framework Agreement entered into between
the Company and SPIC Financial for a term of three years from 7 June 2022 to 6 June 2025.
Pursuant to the Listing Rules, the FS Framework Agreement constitutes continuing connected
transactions of the Company. The Existing FS Annual Cap for the FS Framework Agreement is
RMB5.5 billion for each of (i) the period from 7 June 2022 to 31 December 2022; (ii) the two
years ending 31 December 2023 and 2024; and (iii) the period from 1 January 2025 to 6 June
2025.
Following Completion, the Target Companies would become subsidiaries of the Company.
Accordingly, the provision of financial services by SPIC Financial to the Target Companies would
become continuing connected transactions of the Company and would fall within the scope of the
FS Framework Agreement of the Company.
–7–
After taking into account the estimated transaction amounts for the provision of financial
services by SPIC Financial to the Group after Completion (including the estimated transaction
amounts for the provision of financial services by SPIC Financial to the Target Companies after
Completion) for the remainder of the term of the FS Framework Agreement, the Company expects
that the Existing FS Annual Cap will be exceeded. Therefore, on 17 August 2023, the Company
and SPIC Financial entered into the FS Framework Agreement Supplemental Agreement to amend
the Existing FS Annual Cap to the Revised FS Annual Cap.
The purpose of this circular is to provide you with, among other things, (i) further details of
the Acquisitions and the Revised FS Annual Cap; (ii) a letter of recommendation of the
Independent Board Committee; (iii) a letter of advice from Gram Capital to the Independent Board
Committee and the Independent Shareholders; (iv) other information as required to be disclosed
under the Listing Rules; and (v) a notice of the General Meeting.
II. THE ACQUISITIONS
A. THE ACQUISITION AGREEMENTS
Agreement I
Date
26 July 2023
Parties
(i) the Company, as the Purchaser; and
(ii) SPIC, as the Seller.
Assets to be acquired
The Company has conditionally agreed to acquire, and SPIC has conditionally agreed to
sell, Equity Interests I.
Consideration
The total consideration for the acquisition of Equity Interests I is RMB8,811,044,100

(equivalent to approximately HK$9,682,466,000).
Pursuant to the Agreement I, the consideration for the acquisition of Equity Interests I
is to be satisfied by the Company in cash.
The consideration was arrived at after arm’s length negotiations between the Company
and SPIC and was based on (i) the appraised value set out in the Asset Appraisal Reports in
respect of the Target Companies I; and (ii) the percentage of equity interest in Target
Companies I to be acquired by the Company. The consideration is subject to adjustment of
not more than RMB400,000,000 in total by (i) any dividend attributable to the profits
generated from the Target Companies I up to the Appraisal Benchmark Date to be distributed
by Target Companies I to their original shareholders prior to Completion; (ii) the changes to
the financial position and operating results of Target Companies I as a result of any dividend
to be distributed by the relevant companies (to which the Reorganization Equity Interests
relate) to their original shareholders prior to completion of the Pre-Acquisition
Reorganization; and (iii) any other matters as agreed between the Company and SPIC.
–8–
Agreement II
Date
26 July 2023
Parties
(i) the Company, as the Purchaser; and
(ii) SPIC Guangdong and CPCEC, as the Sellers.
Assets to be acquired
The Company has conditionally agreed to acquire, and SPIC Guangdong and CPCEC
have conditionally agreed to sell, Equity Interests II.
Consideration
The total consideration for the acquisition of Equity Interests II is RMB1,974,016,700

(equivalent to approximately HK$2,169,249,000).
Pursuant to the Agreement II, the consideration for the acquisition of Equity Interests II
is to be satisfied by the Company in cash.
The consideration was arrived at after arm’s length negotiations between the Company,
SPIC Guangdong and CPCEC and was primarily based on the appraised value set out in the
Asset Appraisal Reports in respect of Target Company II.
The consideration allocated to each of the Equity Interests
The following table sets out (i) the appraised value of the entire equity interest of each
of the Target Companies as at the Appraisal Benchmark Date; and (ii) the consideration
allocated to each of the Equity Interests according to the Acquisition Agreements:
Appraised Percentage
value of Target of equity Percentage
Companies as interest Consideration of equity
at the represented by allocated to interest Consideration
Appraisal the relevant each of the represented by allocated
Benchmark Equity Equity Equity to Equity
Target Companies Date Interests I Interests I Interests II Interests II
(RMB’000) (RMB’000) (RMB’000)
1 Beijing Company 10,572,727.2 55.15% 5,830,859.1 — —
2 Heilongjiang Company 1,111,880.0 100% 1,111,880.0 — —
3 Fujian Company 1,251,355.0 100% 1,251,355.0 — —
4 Shanxi Company 616,950.0 100% 616,950.0 — —
5 Jieyang Company 1,974,016.7 — — 100% 1,974,016.7
Total 15,526,928.9 8,811,044.1Note 1
1,974,016.7Note 2
Notes:
1. The total consideration for Acquisition I of RMB8,811,044,100 (equivalent to approximately

HK$9,682,466,000) subject to adjustment of not more than RMB400,000,000
2. The total consideration for Acquisition II of RMB1,974,016,700 (equivalent to approximately

HK$2,169,249,000)
–9–
Conditions precedent to the Acquisition Agreements
Completion for each of the Target Companies is conditional upon satisfaction of, among
other things, the following conditions under the respective Agreement I and Agreement II:
(i) the Seller(s), the Company and the relevant Target Company having obtained all
necessary permissions, approvals, consents, registrations, filings and other legally
necessary types of authorizations internally and externally from regulatory
authorities and third parties for the execution and performance of the Acquisition
Agreements (including but not limited to those required by the relevant
government authorities or financial institutions);
(ii) the due execution and delivery by the relevant parties of the new articles of
association and new shareholders’ agreements of the relevant Target Company (if
any) and completion of all necessary documentation for the transfer of the Equity
Interests in the Target Companies;
(iii) the representations and warranties made by the relevant Seller(s) pursuant to the
relevant Acquisition Agreement, and all materials and information provided for
completion of due diligence on the relevant Target Company, being true, accurate,
complete and not misleading in any respect as at the signing date and effective
date of the relevant Acquisition Agreement and the relevant Completion Date;
(iv) the relevant Target Company did not violate any rules or regulations in relation to
its business operations prior to Completion;
(v) the Purchaser having convened a general meeting in accordance with the Listing
Rules and having obtained the approval of the Acquisition Agreements and the
Acquisitions contemplated thereunder from the Independent Shareholders;
(vi) the relevant Acquisition Agreement remaining valid and free from any breach and
dispute;
(vii) filing of the relevant Asset Appraisal Report in accordance with the relevant
regulations as promulgated by the SASAC;
(viii) there is no material adverse change in respect of the financial position, business
operations or prospects of each Target Company since the Appraisal Benchmark
Date;
(ix) (applicable to Beijing Company only) apart from the Seller, all the other
shareholder(s) of Beijing Company having given their written consent to the
transfer of the relevant Equity Interests and having waived all their pre-emptive
rights in written form; and
(x) (applicable to Agreement I only) the completion of the transfer of the relevant
Reorganization Equity Interests from the respective sellers to the respective
purchasers pursuant to the Reorganization Agreements and the registration of the
respective purchaser(s) as the shareholder(s) of the relevant Reorganization Equity
Interests.
For the avoidance of doubt, subject to relevant provisions in the Acquisition

Agreements, the parties to the relevant Acquisition Agreement could proceed to Completion
of any Target Company after the above conditions precedent in relation to such Target
Company having been satisfied or waived (if applicable).
– 10 –
Settlement of the consideration for the Acquisitions
The settlement of the consideration for the Acquisitions shall be made in cash in the
following manner:
(i) 40% of the respective consideration of Agreement I and Agreement II shall be

paid within three months after Completion;
(ii) 40% of the respective consideration of Agreement I and Agreement II shall be

paid within six months after Completion; and
(iii) 20% of the respective consideration of Agreement I and Agreement II shall be

paid within 12 months after Completion.
Put Option under the Acquisition Agreements
Pursuant to the Acquisition Agreements, if any of the Target Companies or any of their
respective subsidiaries is (i) unable to comply with any applicable laws or regulations; or (ii)
there occurs any non-compliance relating to land use or failure to complete property
ownership registration, and such occurrence has a significant impact on the operations of any
of the Target Companies or any of their respective subsidiaries such that there is a risk of
rendering any of the Target Companies or any of their respective subsidiaries becoming
unable to continue its operations, the Company shall have the right to require the Seller(s) or
any third party appointed by the Seller(s) to buy back the relevant Equity Interest(s) (or part
thereof as it relates to any subsidiary) at a consideration not lower than the appraised value of
the relevant Equity Interest(s) (or part thereof as it relates to any subsidiary) as at the time
when the Put Option is exercised. No premium is payable for the grant of the Put Option to
the Company.
Regulatory requirements in respect of the Acquisition Agreements
In order to comply with the PRC regulatory requirements set forth by the SASAC, the
Company engaged PCAA and Zhongtianhua, each of which is an independent and qualified
PRC appraiser, to perform asset appraisals and prepare the Asset Appraisal Reports in respect
of the Target Companies as at the Appraisal Benchmark Date.
Asset Appraisal Reports
The asset appraisals that formed the basis of the consideration for the Acquisitions were
made under the income approach with discounted cash flow method, which constituted a
profit forecast under Rule 14.61 of the Listing Rules. The key assumptions and
methodologies of the Asset Appraisal Reports are set out in Appendix V to this circular.
CSCI and CITICS, the Company’s Joint Financial Advisers, have confirmed that they are
satisfied that the profit forecast was made by the Board after due and careful enquiry. The
full text of the letter from the Joint Financial Advisers is contained in Appendix VI to this
circular. Ernst & Young, the Company’s reporting accountant, has reported on the
arithmetical accuracy of the calculations of the discounted cash flow forecast contained in
the Asset Appraisal Reports. The full text of the letter from Ernst & Young is contained in
Appendix VII to this circular.
The Company took into account the appraised value of RMB15,526,928,900 and the
percentage of equity interest in Target Companies I to be acquired by the Company as the
basis of the consideration for the Acquisitions. Based on these factors taken into account
when determining the consideration for the Acquisitions and other factors set out in the
paragraph under ‘‘Reasons for and Benefits of the Acquisitions’’ below, the Directors (save
for the members of the Independent Board Committee who will express their view after
– 11 –
having received Gram Capital’s advice in writing on the Acquisitions) are of the view that the
consideration for the Acquisitions is fair and reasonable and in the interests of the Company
and the Shareholders as a whole.
B. REASONS FOR AND BENEFITS OF THE ACQUISITIONS
(1) Accelerate the positioning of China Power as the flagship clean energy listed
subsidiary of SPIC
The Acquisitions involve acquisition of power generation project with a total

capacity of 9,268.3MW, including 7,531.7MW in operation and 1,736.6MW under
construction. Upon completion of the Acquisitions, it is expected that the proportion of
the Company’s installed capacity of clean energy will increase by approximately 6.9
percentage points. The Acquisitions will further consolidate China Power’s positioning
as the flagship clean energy listed subsidiary of SPIC, which in turn broadens China
Power’s operation and development potentials.
(2) Firmly implement the new development strategy of China Power
The acquisition of high-quality clean energy assets involved in the Acquisitions

shall further enhance the asset structure of the Company, firmly promote the
implementation of the Company’s new development strategy of transforming itself into
a leading clean and low-carbon energy provider and a frog-leap step towards its
strategic goal. Details of the new development strategy are set out in the announcement
of the Company dated 22 October 2021.
(3) Expand the regional layout of China Power’s business and promote its industry
influence
The Acquisitions involve assets located in 21 provinces in the PRC, mainly in

regions such as Shanxi, Inner Mongolia, Heilongjiang, Ningxia, Shandong, Xinjiang and
Guangdong, which will significantly strengthen China Power’s industry influence in the
power markets in various regions as well as upstream and downstream industry chains,
therefore creating better opportunities for the Company’s future development.
(4) Improve profitability of the Group
The Acquisitions will provide stable and attractive earnings which are expected to
improve the Group’s overall operating results and therefore the competitiveness of the
Group. The profitability of these assets can be further enhanced (which will in turn
contribute to the profitability of the Group) through subsequent technical
transformation, capital coordination and management synergy.
Taking into consideration all of the aforementioned in relation to the Acquisitions, the
Directors (save for the members of the Independent Board Committee who will express their
view after having received Gram Capital’s advice in writing on the Acquisitions) expect that
the Acquisitions will have a positive impact on the Company’s operations and future
prospects. They are of the view that the consideration for the Acquisitions and the other
terms of the Acquisition Agreements are fair and reasonable, on normal commercial terms
and that the Acquisitions are in the interest of the Company and the Shareholders as a whole.
C. PROPOSED FINANCING FOR THE ACQUISITIONS
The cash consideration payable by the Company to each of SPIC, SPIC Guangdong and
CPCEC under the Acquisition Agreements will be funded by the Group’s internal resources and/or
external debt financing.
– 12 –
The Company plans to obtain long-term acquisition-loan from banks to satisfy approximately
60% of the consideration for the Acquisitions, and utilise available short-term facilities to satisfy
the remaining 40%. As at the Latest Practicable Date, the Company has been in discussion with
banks and no material obstacle has been encountered.
As at 30 June 2023, the cash and cash equivalent of the Company and facilities available to
the Company amounted to approximately RMB2,539 million and approximately RMB24,018
million, respectively. In the unlikely event that the Company is unable to obtain the long-term
acquisition-loan as mentioned above, the Directors are of the view that the Group will still be able
to settle the consideration for the Acquisitions.
D. INFORMATION ABOUT THE TARGET COMPANIES
Set out below are the profit before/after taxation, total assets and net assets of the Target
Companies for the relevant periods or as at the dates indicated:
Beijing Company
For the year ended For the year ended
31 December 2021 31 December 2022
(RMB’000) (RMB’000)
Profit before taxation 1,066,212 942,159
Profit after taxation 915,875 770,722
As at 31 December 2021 As at 31 December 2022

(RMB’000) (RMB’000)
Total assets 35,437,465 37,772,456
Net assets 11,083,146 13,102,160
Heilongjiang Company

(RMB’000) (RMB’000)
Profit before taxation 72,321 57,509

(RMB’000) (RMB’000)
Total assets 8,484,372 11,274,027
Net assets 1,240,421 1,773,900
Fujian Company

(RMB’000) (RMB’000)

(RMB’000) (RMB’000)
Total assets 2,883,794 4,957,754
Net assets 761,568 1,653,540
– 13 –
Shanxi Company

(RMB’000) (RMB’000)

(RMB’000) (RMB’000)
Total assets 1,354,786 5,248,972
Net assets 214,990 1,084,909
Jieyang Company
(RMB’000) (RMB’000)

(RMB’000) (RMB’000)
Total assets 7,702,918 8,352,957
Net assets 1,344,233 1,810,725
Set out below are the principal business and installed capacity in operation of the Target
Companies as at the Latest Practicable Date:
Installed capacity
No. Target Company Principal business in operation
(MW)
1 Beijing Company Generation and sales of electricity in the PRC 4,529.9Note
2 Heilongjiang Company Generation and sales of electricity in the PRC, 1,650.0
including investment, development, operation
and management of wind power, photovoltaic
power and biomass power plants
3 Fujian Company Investment holdings, generation and sales of 514.1
electricity and the development of power plants
in the PRC
4 Shanxi Company Generation and sales of electricity in the PRC, 522.2
including investment, development, operation
and management of photovoltaic power and
wind power plants
5 Jieyang Company Generation and sales of electricity 315.5
Total 7,531.7
Note: This figure represents the entire installed capacity of Beijing Company, of which the Company proposes
to acquire 55.15%.
E. FINANCIAL EFFECTS OF THE ACQUISITIONS ON THE GROUP
Upon the Completion of the Acquisitions, the Target Companies will become wholly-owned
subsidiaries of the Company (save for Beijing Company, which will be held as to 55.15% by the
Company) and the consolidated financial results of the Target Companies will be consolidated into
– 14 –
the Group’s financial statement. The accompanying unaudited pro forma financial information of
the Enlarged Group as set out in Appendix IV to this circular is prepared as if the Acquisitions had
taken place at 31 December 2022 to illustrate the effect of the Acquisitions.
Assets and Liabilities
Based on the unaudited pro forma consolidated statement of assets and liabilities of the
Enlarged Group as set out in Appendix IV to this circular (assuming that the Acquisitions had
been completed on 31 December 2022), the total assets of the Group would have increased
from RMB211,405 million to RMB281,767 million on a pro forma basis, the total liabilities
of the Group would have increased from RMB142,815 million to RMB202,773 million on a
pro forma basis, and the net assets of the Group would have increased from RMB68,590
million to RMB78,994 million on a pro forma basis.
Earnings
Upon the Completion of the Acquisitions, the Target Companies will become wholly-
owned subsidiaries of the Company (save for Beijing Company, which will be held as to
55.15% by the Company) and the consolidated financial results of the Target Companies will
be consolidated into the financial statements of the Group. It is expected that the Company
will be able to record additional revenue stream from the Target Companies upon
Completion.
F. INFORMATION ON THE GROUP, SPIC GUANGDONG, CPCEC AND SPIC
The Company is a core subsidiary of SPIC. The Group is principally engaged in generation
and sales of electricity in Mainland China, including investment, development, operation and
management of hydropower, wind power, photovoltaic power, environmental power and thermal
power plants; and provision of energy storage, green power transportation, and integrated
intelligent energy solution services. Its businesses are located in various major power grid regions
of China.
SPIC Guangdong is a company incorporated in the PRC, an indirectly wholly-owned

subsidiary of SPIC. SPIC Guangdong and its subsidiaries are principally engaged in the generation
and supply of electricity and heat, provision of energy saving management services and technical
services in relation to wind power and photovoltaic power generation, etc.
CPCEC is a company incorporated in the PRC, a wholly-owned subsidiary of SPIC. CPCEC

and its subsidiaries are principally engaged in the manufacturing, supply, and sales of equipment
and components for hydropower and thermal power plants, act as the contractor for construction of
power plant projects, and act as tendering and bidding agents, etc.
SPIC is an investment holding company principally engaged in businesses that cover various
sectors, including power, coal, aluminum, logistics, finance, environmental protection and high-
tech industries in the PRC and abroad. SPIC, together with its subsidiaries, is an integrated energy
group which simultaneously owns thermal power, hydropower, nuclear power and renewable
energy resources in the PRC.
III. REVISION OF ANNUAL CAP — FINANCIAL SERVICES FRAMEWORK AGREEMENT
A. PROPOSED REVISION OF ANNUAL CAP AND BASIS OF DETERMINATION
Principal Terms of the Financial Services Framework Agreement
Save for the revision of the aforesaid Existing FS Annual Cap, other principal terms of
the FS Framework Agreement shall remain unchanged. A summary of the principal terms of
the FS Framework Agreement is set out below.
– 15 –
Parties
(i) the Company; and
(ii) SPIC Financial.
Effective period
For a term of three years from 7 June 2022 and ended 6 June 2025 (both days
inclusive).
(1) Services to be provided
SPIC Financial has agreed to provide the Group with deposit services, settlement
services, loan services and other financial services approved by the CBIRC on a non-
exclusive basis.
(2) Pricing Principles
When determining the price for any financial services to be provided pursuant to the FS
Framework Agreement, each of the Group and SPIC Financial shall refer to at least two
comparable transactions with independent third parties or two quotes obtained from
independent third parties during the same period.
Subject to compliance with the relevant laws, regulations and regulatory requirements,
SPIC Financial has agreed to adhere to the following principles in providing the above
financial services to the Group:
(a) Deposit services: The interest rate applicable to the Group for its deposits with
SPIC Financial during the same period shall not be lower than (i) the benchmark
interest rate specified by the PBOC of the same type of deposits; (ii) the interest
rate of the same type of deposits obtained from other major commercial banks in
the PRC to the Group; and (iii) the interest rate of same type of deposits placed by
other members of SPIC Group with SPIC Financial.
In addition, subject to the above, the applicable interest rate for the amount of the
Group’s deposits in current account(s) that exceeds RMB100,000, will be 23 basis
points higher than, and adjusted according to, the benchmark interest rate for
agreements deposits (協定存款基準利率) as published by the PBOC from time to
time.
(b) Loan services: The interest rate for loans to the Group granted by SPIC Financial
during the same period shall not be higher than (i) the benchmark interest rate
specified by the PBOC for the same type of loans; (ii) the interest rate obtained
from other major commercial banks in the PRC to the Group; and (iii) the interest
rate of the same type of loans under the same conditions offered by SPIC
Financial to other members of the SPIC Group.
In addition, subject to the above, the interest rate for loans granted to the Group
shall be 10 basis points lower than the loan prime rate (LPR) of the same type of
loans as specified by the PBOC during the same period and to be governed by
individual loan agreement(s).
Subject to compliance with the relevant laws, regulations and regulatory

requirements, SPIC Financial will provide the loan services on normal
commercial terms or better and such loans will not be secured by the assets of the
Group.
– 16 –
(c) Settlement services: The settlement services to the Group to facilitate clearing
among members of the Group shall be free of charge.
(d) Other financial services: The services fees for other financial services during the
same period shall be in accordance with the standard of fees for the same type of
services set by the PBOC or the CBIRC (if applicable), and shall not be higher
than (i) the fees charged by other major commercial banks in the PRC for the
same type of services/business activities; and (ii) the fees charged to other
members of the SPIC Group under the same conditions for providing the same
type of services/business activities by SPIC Financial.
(3) Capital Risk Control Measures
(a) SPIC Financial, as a non-bank financial institution approved by the CBIRC,

complies strictly with the regulatory requirements of the CBIRC to conduct its
operation and business, establish effective and complete internal control and risk
management systems in order to effectively manage risks and ensure the safety of
all capital.
(b) When providing financial services to the Group on a non-exclusive basis, SPIC
Financial will ensure the Group’s rights to own, use and the benefit derived from
its funds will not be affected. SPIC Financial is obliged to ensure the safety of the
Group’s funds deposited with it and the Group’s independent use of such funds.
(c) If any member of the Group cannot recover the deposits placed with SPIC
Financial as a result of SPIC Financial misappropriated the deposits of the Group
or used such deposits in breach of the FS Framework Agreement, the Group has
the right to set off the deposit amounts due to the Group from SPIC Financial
against any amounts of loan outstanding owing by the Group to SPIC Financial.
SPIC Financial does not have such set-off right.
(d) SPIC has given an undertaking to the Company that: (i) if SPIC Financial
encounters emergency financial difficulties in making payments to the Group,
SPIC will increase the capital of SPIC Financial accordingly to meet its actual
needs to overcome such financial difficulties; and (ii) SPIC will provide financial
support to SPIC Financial in accordance with its needs to ensure that the Group
will be able to withdraw all the deposits placed with SPIC Financial at any time.
(e) The monthly financial statements of SPIC Financial will be provided to the senior
management of the Group on the fifth working day of the following month to
enable the Group to have timely information on the financial conditions of SPIC
Financial.
(f) The Group, based on its own business needs, has the right, but not the obligation,
to choose to hold no less than 10% of the equity interest in SPIC Financial, hold
the relevant voting rights and appoint director(s) of SPIC Financial, and such right
is being granted at no premium or additional cost. If the Group chooses to
exercise such right, the terms of acquisition (including determination of the price
for such equity interest in SPIC Financial) will be subject to negotiations with
relevant parties on an arm’s length basis and approvals required under relevant
laws and regulations (including the Listing Rules).
(g) The Group has the unilateral right to terminate any services provided by SPIC
Financial under the FS Framework Agreement if the fees charged by any other
commercial banks in the PRC for such services are more favourable to the Group.
– 17 –
(h) The Group is entitled to appoint any other financial institutions for the provision
of the financial services in accordance with its own business needs and
requirements. SPIC Financial will be given preferential consideration under same
terms and conditions compared with other financial institutions.
(4) Payment
The consideration for the transactions contemplated under the FS Framework

Agreement will be paid in accordance with the specific terms as agreed under separate
agreements from time to time.
Historical Transaction Amounts
The table below sets out the historical highest daily deposit balance (including accrued
interests) in respect of the deposit services placed with SPIC Financial by (i) the Group
(without taking into account transactions of the Target Companies); and (ii) the Group
together with the Target Companies.
The period from

7 June 2022 to The year ending
(in RMB billion) (in RMB billion)
Existing FS Annual Cap 5.5 5.5
the Group (without taking into
account transactions of the 5.475 4.757 (up to 31 May
Target Companies) 2023)
the Group together with the Target 10.018 7.798 (up to 31 May
Companies 2023)
Revised FS Annual Cap and Basis of Determination
In determining the proposed revised maximum daily deposit balance (including accrued
interests) in the Group’s settlement account with SPIC Financial for the remainder of the term
of the FS Framework Agreement, the Board has considered the following factors (i) the
aforementioned historical highest daily balances of deposits of the Group (without taking into
account transactions of the Target Companies); and (ii) the aforementioned historical highest
daily balances of deposits of the Group together with the Target Companies.
The Revised FS Annual Cap will not exceed RMB9.0 billion (equivalent to
approximately HK$9.9 billion) for each of (i) the years ending 31 December 2023 and 2024;
and (ii) the period of 1 January 2025 to 6 June 2025.
The period from

Year ending 31 December 1 January 2025 to
2023 2024 6 June 2025
(in RMB billion) (in RMB billion) (in RMB billion)
Proposed Revised
Annual Cap 9.0 9.0 9.0
B. REASONS FOR AND BENEFITS OF THE REVISED FS ANNUAL CAP
The benefits to the Group from the transactions under the FS Framework Agreement have
been outlined in the announcement of the Company dated 6 May 2022. The Existing FS Annual
Cap was contemplated only for the purposes of the continuing connected transactions between the
Company (excluding the Target Companies) and SPIC Financial under the FS Framework
– 18 –
Agreement. Upon Completion of the Acquisitions, the Company expects that the Existing FS
Annual Cap will be exceeded, and therefore should be adjusted upwards into the Revised FS
Annual Cap (which will become effective upon Completion of any Target Company).
The Directors (save for the members of the Independent Board Committee who will express
their views after having received advice from Gram Capital) consider that the Revised FS Annual
Cap is fair and reasonable and is in the interests of the Company and its shareholders as a whole.
None of the Directors has material interest in the aforesaid transactions or is required to
abstain from voting on the relevant Board resolutions.
C. INFORMATION OF SPIC FINANCIAL
SPIC Financial was established in the PRC as a non-banking financial institution on 2

September 1992. It is licensed and regulated by the CBIRC and is engaged in the provision of
financial services which principally include deposit taking, provision of loans, issue of corporate
debentures, inter-bank lending, as well as other financial services such as finance leasing, bills
acceptance and discounting, entrusted loans and entrusted investment, arrangement of buyer’s
credit for member companies’ products, underwriting of corporate debentures of member
companies, provision of financial advisory, credit certification and other advisory agency services
and guarantee services to members of the SPIC Group. SPIC Financial only provides services to
members of the SPIC Group under the Measures on Administration of the Finance Companies of
Enterprise Groups 《企業集團財務公司管理辦法》
( ) promulgated by the CBIRC. SPIC Financial
has a registered capital of RMB7.5 billion and is owned as to 40.86% by SPIC and as to 59.14%
by other wholly-owned and controlled members of the SPIC Group, respectively.
IV. LISTING RULES IMPLICATIONS
Acquisitions
As at the Latest Practicable Date, SPIC indirectly owns approximately 61.06% of the issued
share capital of the Company and is the ultimate controlling shareholder of the Company.
Accordingly, SPIC, its subsidiaries and associates are connected persons of the Company within
the meaning of the Listing Rules. Each of SPIC Guangdong and CPCEC is a wholly-owned
subsidiary of SPIC and CPCEC is a direct wholly-owned subsidiary ultimately owned and
controlled by SPIC. As such, SPIC Guangdong and CPCEC are both connected persons of the
Company under Chapter 14A of the Listing Rules.
As one or more of the applicable percentage ratios (as defined under Rule 14.07 of the
Listing Rules) in respect of the Acquisitions, when aggregated, exceed(s) 25% but all are below
100%, the Acquisitions constitute (i) major transactions of the Company subject to the reporting,
announcement, circular and Shareholders’ approval requirements under Chapter 14 of the Listing
Rules; and (ii) connected transactions of the Company subject to the reporting, announcement,
circular and Independent Shareholders’ approval requirements under Chapter 14A of the Listing
Rules.
Put Option
The exercise of the Put Option is at the discretion of the Company. According to Rule
14A.79(2) of the Listing Rules, the grant of the Put Option is classified based on the amount of the
premium payable by the Company. As no premium is payable for the grant of the Put Option to the
Company, such grant falls within the de minimis threshold and is exempt from all reporting,
announcement and Independent Shareholders’ approval requirements under Rule 14A.76 of the
Listing Rules. The Company will comply with the requirements of the applicable Listing Rules in
this respect as and when appropriate.
– 19 –
Revision of Existing FS Annual Cap
SPIC Financial is a wholly-owned subsidiary of SPIC. SPIC is the ultimate controlling

shareholder of the Company, which is interested in approximately 61.06% of the issued share
capital of the Company. As such, SPIC Financial is a connected person of the Company as defined
in the Listing Rules.
Prior to Completion of the Acquisitions, SPIC Financial provided financial services to the
Target Companies under similar terms as contemplated under the FS Framework Agreement.
Following Completion, the Target Companies would become subsidiaries of the Company.
Accordingly, the provision of financial services by SPIC Financial to the Target Companies would
become continuing connected transactions of the Company and would fall within the scope of the
FS Framework Agreement of the Company.
Pursuant to Rule 14A.54 of the Listing Rules, the Company shall re-comply with the
requirements under Chapter 14A of the Listing Rules applicable to the Revised FS Annual Cap for
the financial services to be provided by SPIC Financial to the Enlarged Group before the Existing
FS Annual Cap is exceeded.
Deposit Services
As certain applicable percentage ratio(s) (as defined in Rule 14.07 of the Listing Rules) in
respect of deposit services under the Revised FS Annual Cap exceed(s) 25% but all are below
100%, transactions under the deposit services therefore constitute (i) major transactions of the
Company subject to the reporting, announcement, circular and Shareholders’ approval requirements
under Chapter 14 of the Listing Rules, and (ii) continuing connected transactions of the Company
subject to the reporting, announcement, Independent Shareholders’ approval and annual review
requirements under Chapter 14A of the Listing Rules.
Loan Services
The loan services to be provided by SPIC Financial to the Enlarged Group are on normal
commercial terms or better (i.e. terms that are similar or more favorable than those offered by
other major commercial banks in the PRC for the provision of comparable services) and are in the
interest of the Enlarged Group. No security over the assets of the Enlarged Group will be granted
to SPIC Financial in respect of the loan services. Such loans will therefore be exempted from all
reporting, announcement and Independent Shareholders’ approval requirements under Rule 14A.90
of the Listing Rules.
Settlement Services and Other Financial Services
The Company expects that each of the percentage ratios as defined in Rule 14.07 of the
Listing Rules applicable to the total fees payable by the Enlarged Group to SPIC Financial in
respect of the provision of settlement services (which will be free of charge) by SPIC Financial
and other financial services approved by the CBIRC under the FS Framework Agreement will fall
within the de minimis threshold and will be exempted from all reporting, announcement and
Independent Shareholders’ approval requirements under Rule 14A.76 of the Listing Rules.
To the best of the Directors’ knowledge, information and belief, having made all reasonable
enquiries, apart from the shareholding companies of the Company, namely CPI Holding (being
interested in 2,833,518,060 Shares, representing approximately 22.91% of the total number of
Shares as at the Latest Practicable Date), CPDL (being interested in 2,662,000,000 Shares,
representing approximately 21.52% of the total number of Shares as at the Latest Practicable Date),
SPIC Finance HK (being interested in 392,275,453 Shares, representing approximately 3.17% of
the total number of Shares as at the Latest Practicable Date) and CPNE (being interested in
1,664,910,662 Shares, representing approximately 13.46% of the total number of Shares as at the
Latest Practicable Date) (each of whom is required to abstain from voting), no other shareholder of
– 20 –
the Company will be required to abstain from voting on the resolution for approving the
Acquisitions, the Acquisition Agreements and the Revised FS Annual Cap at the General Meeting.
None of the Directors has a material interest in the proposed Acquisitions and had to abstain from
voting on the relevant Board resolutions.
An Independent Board Committee comprising all the independent non-executive Directors

has been formed to consider the Acquisitions, the Acquisition Agreements and the Revised FS
Annual Cap, and Gram Capital has been appointed as the Independent Financial Adviser to advise
the Independent Board Committee and the Independent Shareholders as to (i) whether the terms of
the Acquisition Agreements and the transactions contemplated thereunder are fair and reasonable,
on normal commercial terms or better and in the interests of the Company and the Independent
Shareholders as a whole, and (ii) whether the proposed Revised FS Annual Cap for the FS
Framework Agreement Supplemental Agreement and the transactions contemplated thereunder are
fair and reasonable, on normal commercial terms or better and in the interests of the Company and
its shareholders as a whole.
V. GENERAL MEETING
The GM will be held on Wednesday, 6 September 2023 at 10:30 a.m. at Salon 5, JW Marriott
Ballroom, 3/F, JW Marriott Hotel Hong Kong, Pacific Place, 88 Queensway, Hong Kong, during which
ordinary resolutions will be proposed to the shareholders of the Company to approve the Acquisitions,
the Acquisition Agreements, the FS Framework Agreement Supplemental Agreement, the Revised FS
Annual Cap and the transactions contemplated thereunder. CPI Holding, CPDL, SPIC Finance HK and
CPNE, being shareholders of the Company and associates of SPIC, will abstain from voting on the
ordinary resolution to approve the Acquisitions, the Acquisition Agreements, the FS Framework
Agreement Supplemental Agreement, the Revised FS Annual Cap and the transactions contemplated
thereunder. Any vote of the Independent Shareholders at the GM will be taken by poll.
A notice convening the GM for the purpose of considering and, if thought fit, approving the
Acquisitions, the Acquisition Agreements, the FS Framework Agreement Supplemental Agreement, the
Revised FS Annual Cap and the transactions contemplated is set out at the end of this circular on pages
GM-1 to GM-3.
Whether or not you are able to attend the GM, you are requested to complete the form of proxy
accompanying the notice of the GM in accordance with the instructions printed thereon and return it (i)
to the Company’s share registrar, Computershare Hong Kong Investor Services Limited at 17M Floor,
Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong, or (ii) electronically via the Company’s
email address at eproxy@chinapower.hk not less than 48 hours before the time appointed for the holding
of the GM or any adjournment thereof (as the case may be). Submission of the form of proxy will not
preclude any member of the Company from attending the GM or any adjournment thereof and voting in
person if such member so wishes and in such event, the form of proxy will be deemed to be revoked.
A form of proxy for use at the GM is enclosed with this circular or can be downloaded from the
website of the Stock Exchange at www.hkexnews.hk and on the Company’s website at
www.chinapower.hk.
Please note that there will be NO serving of any refreshments or beverages and NO
distribution of gifts, souvenirs or bakery vouchers at the GM.
– 21 –
VI. RECOMMENDATION
The Directors (including the independent non-executive Directors whose view are expressed in the
letter from the Independent Board Committee) consider that the Acquisitions, the Acquisition
Agreements, the FS Framework Agreement Supplemental Agreement, the Revised FS Annual Cap and
the transactions contemplated thereunder are in the interests of the Company and the Shareholders as a
whole, and the terms and transactions contemplated are fair and reasonable as far as the Shareholders are
concerned. Accordingly, the Directors recommend that Shareholders to vote in favour of the resolutions
to be proposed at the General Meeting to approve the Acquisitions, the Acquisition Agreements, the FS
Framework Agreement Supplemental Agreement, the Revised FS Annual Cap and the transactions
contemplated thereunder.
* English translation is for identification only.
Yours faithfully,
On behalf of the Board
China Power International Development Limited
HE Xi
Chairman
– 22 –
LETTER FROM THE INDEPENDENT BOARD COMMITTEE

(Stock Code: 2380)
18 August 2023
To the Independent Shareholders
Dear Sir or Madam,

AND
We refer to the circular dated 18 August 2023 (the ‘‘Circular’’) issued by the Company to the
Shareholders of which this letter forms part. Unless the context otherwise requires, capitalised terms
used herein shall have the same meanings as those defined in the Circular.
We have been appointed as members of the Independent Board Committee to advise the
Independent Shareholders in respect of the Acquisitions, the Acquisition Agreements, the FS Framework
Agreement Supplemental Agreement, the Revised FS Annual Cap and the transactions contemplated
thereunder, Gram Capital has been appointed as the Independent Financial Adviser to advise the
Independent Board Committee and the Independent Shareholders in the same respect.
We wish to draw your attention to the letter from the Board, as set out on pages 6 to 22 of the
Circular which contains, among others, information in connection with the Acquisition Agreements and
the FS Framework Agreement Supplemental Agreement, as well as the letter from Gram Capital set out
on pages 24 to 48 of the Circular which contains its advice and recommendation in the same respect.
Having considered the terms of the Acquisition Agreements and the FS Framework Agreement
Supplemental Agreement and taken into account the advice of Gram Capital, we consider that the
Acquisitions and the Revised FS Annual Cap, (i) are in the ordinary and usual course of business of the
Group; (ii) are in the interest of the Company and the Shareholders as a whole; and (iii) the terms of the
Acquisition Agreements and the FS Framework Agreement Supplemental Agreement are on normal
commercial terms and fair and reasonable as far as the Independent Shareholders are concerned.
Accordingly, we recommend the Independent Shareholders to vote in favour of the ordinary

resolutions to be proposed at the General Meeting to approve the Acquisitions, the Acquisition
Agreements, the FS Framework Agreement Supplemental Agreement, the Revised FS Annual Cap and
the transactions contemplated thereunder.
Yours faithfully,
For and on behalf of the
Independent Board Committee
LI Fang
YAU Ka Chi
HUI Hon Chung, Stanley
– 23 –
LETTER FROM GRAM CAPITAL
Set out below is the text of a letter received from Gram Capital, the Independent Financial Adviser to
the Independent Board Committee and the Independent Shareholders in respect of the Transactions for the
purpose of inclusion in this circular.
Room 1209, 12/F.

Nan Fung Tower
88 Connaught Road Central/
173 Des Voeux Road Central
Hong Kong
18 August 2023
To: The independent board committee and the independent shareholders

of China Power International Development Limited
Dear Sir/Madam,

AND
INTRODUCTION
We refer to our appointment as the Independent Financial Adviser to advise the Independent Board
Committee and the Independent Shareholders in respect of (i) the Acquisitions; and (ii) the transactions
contemplated under the FS Framework Agreement Supplemental Agreement (the ‘‘Revision’’, together
with the Acquisitions, the ‘‘Transactions’’), details of which are set out in the letter from the Board (the
‘‘Board Letter’’) contained in the circular dated 18 August 2023 issued by the Company to the
Shareholders (the ‘‘Circular’’), of which this letter forms part. Terms used in this letter shall have the
same meanings as defined in the Circular unless the context requires otherwise.
On 26 July 2023, the Company entered into the Acquisition Agreements pursuant to which, the
Company has conditionally agreed to acquire (i) Equity Interests I from SPIC at the total consideration of
RMB8,811,044,100; and (ii) Equity Interests II from SPIC Guangdong and CPCEC, respectively, at a
consideration of RMB1,974,016,700. The aforesaid considerations will be settled by cash.
Furthermore, on 17 August 2023, the Company entered into the FS Framework Agreement
Supplemental Agreement with SPIC Financial to amend the Existing FS Annual Cap as set out in the FS
Framework Agreement to the Revised FS Annual Cap.
With reference to the Board Letter, (i) the Acquisitions constitute major and connected transactions
of the Company and are subject to the reporting, announcement, circular and Independent Shareholders’
approval requirements under the Chapter 14 and Chapter 14A of the Listing Rules; and (ii) the Revision
constitutes major and continuing connected transactions of the Company and is subject to reporting,
announcement, Independent Shareholders’ approval and annual review requirements under Chapter 14 and
Chapter 14A of the Listing Rules.
The Independent Board Committee comprising Mr. LI Fang, Mr. YAU Ka Chi and Mr. HUI Hon
Chung, Stanley (being all independent non-executive Directors) has been formed to advise the Independent
Shareholders on (i) whether the terms of the Transactions are on normal commercial terms and are fair and
reasonable; (ii) whether the Transactions are in the interests of the Company and the Shareholders as a
whole and conducted in the ordinary and usual course of business of the Group; and (iii) how the
– 24 –
Independent Shareholders should vote in respect of the resolutions to approve the Transactions at the
General Meeting. We, Gram Capital Limited, have been appointed as the Independent Financial Adviser to
advise the Independent Board Committee and the Independent Shareholders in this respect.
INDEPENDENCE
During the past two years immediately preceding the Latest Practicable Date, Gram Capital was
independent financial adviser in respect of (i) discloseable and continuing connected transactions, details
of which were set out in the Company’s circular dated 18 May 2022; and (ii) discloseable and connected
transactions, details of which were set out in the Company’s circular dated 28 July 2022 (the ‘‘Previous
Acquisitions’’).
Notwithstanding the aforesaid, we are not aware of any relationships or interests between Gram
Capital and the Company, or any other parties during the past two years immediately preceding the Latest
Practicable Date that could be reasonably regarded as hindrance to Gram Capital’s independence to act as
the Independent Financial Adviser.
Having considered that (i) none of the circumstances as set out under Rule 13.84 of the Listing Rules
existed as at the Latest Practicable Date; and (ii) the aforesaid were independent financial advisory, we are
of the view that we are independent to act as the Independent Financial Adviser.
BASIS OF OUR OPINION
In formulating our opinion to the Independent Board Committee and the Independent Shareholders,
we have relied on the statements, information, opinions and representations contained or referred to in the
Circular and the information and representations as provided to us by the Directors. We have assumed that
all information and representations that have been provided by the Directors, for which they are solely and
wholly responsible, are true and accurate at the time when they were made and continue to be so as at the
Latest Practicable Date. We have also assumed that all statements of belief, opinion, expectation and
intention made by the Directors in the Circular were reasonably made after due enquiry and careful
consideration. We have no reason to suspect that any material facts or information have been withheld or
to doubt the truth, accuracy and completeness of the information and facts contained in the Circular, or the
reasonableness of the opinions expressed by the Company, its advisers and/or the Directors, which have
been provided to us. Our opinion is based on the Directors’ representation and confirmation that there is no
undisclosed private agreement/arrangement or implied understanding with anyone concerning the
Acquisition Agreements and FS Framework Agreement Supplemental Agreement. We consider that we
have taken sufficient and necessary steps on which to form a reasonable basis and an informed view for
our opinion in compliance with Rule 13.80 of the Listing Rules.
We have not made an independent evaluation or appraisal of the assets and liabilities of the Group or
the Target Companies and we have not been furnished with any such evaluation or appraisal, save as and
except for (i) the Asset Appraisal Reports of the Beijing Company, Heilongjiang Company and Shanxi
Company prepared by PCAA; and (ii) the Asset Appraisal Reports of the Fujian Company and Jieyang
Company prepared by Zhongtianhua. Since we are not experts in the valuation of assets or businesses, we
have relied solely upon the Asset Appraisal Reports as at the Appraisal Benchmark Date (i.e. 31 March
2023).
The Circular, for which the Directors collectively and individually accept full responsibility, includes
particulars given in compliance with the Listing Rules for the purpose of giving information with regard to
the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their
knowledge and belief, the information contained in the Circular is accurate and complete in all material
respects and not misleading or deceptive, and there are no other matters the omission of which would make
the Circular or any statement therein misleading. We, as the Independent Financial Adviser, take no
responsibility for the contents of any part of the Circular, save and except for this letter of advice.
– 25 –
We consider that we have been provided with sufficient information to reach an informed view and to
provide a reasonable basis for our opinion. We have not, however, conducted any independent in-depth
investigation into the business and affairs of the Company, SPIC, SPIC Guangdong, CPCEC, the Target
Companies, SPIC Financial or their respective subsidiaries or associates, nor have we considered the
taxation implication on the Group or the Shareholders as a result of the Transactions. Our opinion is
necessarily based on the financial, economic, market and other conditions in effect and the information
made available to us as at the Latest Practicable Date. Shareholders should note that subsequent
developments (including any material change in market and economic conditions) may affect and/or
change our opinion and we have no obligation to update this opinion to take into account events occurring
after the Latest Practicable Date or to update, revise or reaffirm our opinion. In addition, nothing contained
in this letter should be construed as a recommendation to hold, sell or buy any Shares or any other
securities of the Company.
Lastly, where information in this letter has been extracted from published or otherwise publicly
available sources, it is the responsibility of Gram Capital to ensure that such information has been
correctly extracted from the relevant sources.
PRINCIPAL FACTORS AND REASONS CONSIDERED
In arriving at our opinion in respect of the Transactions, we have taken into consideration the
following principal factors and reasons:
Information on the Group
With reference to the Board Letter, the Company is a core subsidiary of SPIC. The Group is
principally engaged in generation and sales of electricity in Mainland China, including investment,
development, operation and management of hydropower, wind power, photovoltaic power, environmental
power and thermal power plants; and provision of energy storage, green power transportation, and
integrated intelligent energy solution services. Its businesses are located in various major power grid
regions of China.
Set out below are the audited consolidated financial information of the Group for the two years ended
31 December 2022 as extracted from the Company’s annual report for the year ended 31 December 2022
(the ‘‘2022 Annual Report’’):
For the For the
year ended year ended
31 December 31 December Year-on-year
2022 2021 change
RMB’000 RMB’000 %
Revenue 43,689,129 35,476,703 23.15
— Thermal power electricity 28,583,266 22,170,770 28.92
— Hydropower electricity 4,685,036 5,347,552 (12.39)
— Wind power electricity 5,232,439 4,002,905 30.72
— Photovoltaic power electricity 4,292,128 3,375,872 27.14
— Energy storage 896,260 579,604 54.63
Operating profit 7,604,262 5,105,944 48.93
Profit/(loss) attributable to equity holders of
the Company 2,648,051 (256,257) N/A
As at As at
2022 2021 change
RMB’000 RMB’000 %
Total assets 211,404,964 175,245,988 20.63
Total liabilities 142,814,859 122,869,305 16.23
Total equity 68,590,105 52,376,683 30.96
– 26 –
As depicted in the above table, the Group recorded revenue of approximately RMB43.69 billion for
the year ended 31 December 2022 (‘‘FY2022’’), representing an increase of approximately 23.15% as
compared to that for the year ended 31 December 2021 (‘‘FY2021’’). With reference to the 2022 Annual
Report, such increase was mainly due to (i) the increase in market trading prices of thermal power as a
result of the relaxation of the on-grid tariff price cap for coal-fired power generated and the year-on-year
increase in electricity demand; (ii) the commencement of commercial operation and/or the consolidation of
various wind power and photovoltaic power generating units, and various thermal power generation
projects; and (iii) the substantial increase in the sales of energy storage equipment business, partially offset
by the decrease in electricity sales of hydropower as a result of decreased average rainfall in the river
basins where most of the Group’s hydropower plants are located.
The Group recorded profit attributable to equity holders of the Company of approximately RMB2.65
billion for FY2022 as opposed to the loss attributable to equity holders of the Company of approximately
RMB256 million for FY2021. With reference to the 2022 Annual Report and as advised by the Directors,
such turnaround was mainly due to (i) the increase in revenue as aforementioned; and (ii) the recognition
of negative goodwill as a result of the Previous Acquisitions, partially offset by (i) the increase in
operating costs mainly due to the increase in unit fuel cost; (ii) the increase in finance costs; and (iii)
increase in income tax expenses.
According to the Company’s announcement dated 10 July 2023, based on the preliminary assessment
of the internal unaudited consolidated management accounts of the Group and the information currently
available, the Board expected that the profit attributable to equity holders of the Company will be between
approximately RMB1.8 billion to RMB2.0 billion for the six months ended 30 June 2023, representing an
increase of approximately 112% to 135% compared with the corresponding period in 2022. The significant
increase in profit attributable to equity holders of the Company as compared to the corresponding period in
2022 was mainly due to (i) the Company has accelerated the pace of clean energy transformation through
self-development and acquisition of quality clean energy assets, coupled with the synergetic increase in
production capacity, production output and revenue from wind power and photovoltaic power generation,
profit for the period under review rose substantially, which largely offset the impact of the decline in profit
from the hydropower segment due to insufficient rainfall in the first half of 2023; (ii) benefitting from the
advantages of strategic collaboration of coal and power joint operation (the Company sold 60% equity
interest in a wholly-owned subsidiary engaging in coal-fired power generation to China Coal Group at the
end of 2022) and the decrease in coal prices, the performance of the Group’s coal-fired power segment
turned from a loss to a profit; and (iii) the Company actively organized and promoted debt structure
optimization on the basis of continuous improvement in operating cash flows, achieving a reduction in the
average cost of funds and a decrease in finance costs for the period under review.
As at 31 December 2022, the consolidated installed capacity of the Group’s power plants was
31,599.2MW, representing a year-on-year increase of 2,667.3MW. Among them, the consolidated installed
capacity of clean energy including hydropower, wind power, photovoltaic power and natural gas power
was 20,519.2MW in total, accounting for approximately 64.94% of the total consolidated installed
capacity. As at 31 December 2022, the Group’s total installed capacity of clean energy projects under
construction was 7,592.4MW in aggregate.
As at 31 December 2022, the Group had (i) total assets of approximately RMB211.40 billion; (ii) net
assets of approximately RMB68.59 billion; (iii) cash and cash equivalents of approximately RMB4.23
billion; and (iv) sufficient available undrawn financing facilities of approximately RMB35.09 billion to
safeguard against funding risks.
– 27 –
(1) ACQUISITIONS
Information on the Sellers
With reference to the Board Letter:
. SPIC is an investment holding company principally engaged in businesses that cover

various sectors, including power, coal, aluminium, logistics, finance, environmental
protection and high-tech industries in the PRC and abroad. SPIC, together with its
subsidiaries, is an integrated energy group which simultaneously owns thermal power,
hydropower, nuclear power and renewable energy resources in the PRC. As at the Latest
Practicable Date, SPIC indirectly owns approximately 61.06% of the issued share capital
of the Company and is the ultimate controlling shareholder of the Company.
. SPIC Guangdong is a company incorporated in the PRC, an indirectly wholly-owned

subsidiary of SPIC. SPIC Guangdong and its subsidiaries are principally engaged in the
generation and supply of electricity and heat, provision of energy saving management
services and technical services in relation to wind power and photovoltaic power
generation, etc.
. CPCEC is a company incorporated in the PRC, a wholly-owned subsidiary of SPIC.

CPCEC and its subsidiaries are principally engaged in the manufacturing, supply, and
sales of equipment and components for hydropower and thermal power plants, act as the
contractor for construction of power plant projects, and act as tendering and bidding
agents, etc.
Information on the Target Companies
With reference to the Board Letter, the Target Companies are principally engaged in clean
energy power generation, mainly wind power and photovoltaic power. As at the Latest Practicable
Date, except for Beijing Company which are owned as to 55.15% by SPIC, all other Target
Companies I were directly wholly-owned by SPIC; while the Target Company II was directly owned
as to 95% by SPIC Guangdong and 5% by CPCEC. Set out below are the principal business and
installed capacity in operation of the Target Companies as at the Latest Practicable Date, and the
profit before/after taxation of the Target Companies for the year ended 31 December 2022:
Installed
capacity in
No. Target Company Principal business operation
(MW)
1 Beijing Company Generation and sales of electricity in the PRC 4,529.9
(Note)
2 Heilongjiang Generation and sales of electricity in the PRC, including 1,650.0
Company investment, development, operation and management of
wind power, photovoltaic power and
biomass power plants
3 Fujian Company Investment holdings, generation and sales of electricity and 514.1
the development of power plants in the PRC
4 Shanxi Company Generation and sales of electricity in the PRC, including 522.2
investment, development, operation and management of
photovoltaic power and wind power plants
5 Jieyang Company Generation and sales of electricity 315.5
Total 7,531.7
Note: Each figure for Beijing Company represents that attributable to the entire equity interest in Beijing
Company, of which the Company proposes to acquire 55.15%.
– 28 –
Set out below are the audited financial information of the Target Companies for the two years
ended 31 December 2021 and 2022:
Beijing Company
For the For the
2022 2021 change
RMB’000 RMB’000 %
Profit before taxation 942,159 1,066,212 (11.63)
Profit after taxation 770,722 915,875 (15.85)
As at As at
2022 2021 change
RMB’000 RMB’000 %
Total assets 37,772,456 35,437,465 6.59
Net assets 13,102,160 11,083,146 18.22
For the For the
2022 2021 change
RMB’000 RMB’000 %
Profit before taxation 57,509 72,321 (20.48)
Profit after taxation 48,963 63,717 (23.16)
As at As at
2022 2021 change
RMB’000 RMB’000 %
Total assets 11,274,027 8,484,372 32.88
Net assets 1,773,900 1,240,421 43.01
Fujian Company
For the For the
2022 2021 change
RMB’000 RMB’000 %
Profit before taxation 60,532 37,272 62.41
Profit after taxation 45,608 34,901 30.68
As at As at
2022 2021 change
RMB’000 RMB’000 %
Total assets 4,957,754 2,883,794 71.92
Net assets 1,653,540 761,568 117.12
– 29 –
Shanxi Company
For the For the
2022 2021 change
RMB’000 RMB’000 %
As at As at
2022 2021 change
RMB’000 RMB’000 %
Total assets 5,248,972 1,354,786 287.44
Net assets 1,084,909 214,990 404.63
Jieyang Company
For the For the

2022 2021 change
RMB’000 RMB’000 %
As at As at
2022 2021 change
RMB’000 RMB’000 %
Total assets 8,352,957 7,702,918 8.44
Net assets 1,810,725 1,344,233 34.70
Please refer to Appendices IIA–IIE and Appendix III to the Circular for details of the financial
information of the Target Companies and its movements, for the three years ended 31 December
2022 and three months ended 31 March 2023.
Reasons for and benefits of the Acquisitions
With reference to the Board Letter, reasons for and benefits of the Acquisitions include (i)
accelerate the positioning of the Company as the flagship clean energy listed subsidiary of SPIC; (ii)
firmly implement the new development strategy of the Company; (iii) expand the regional layout of
the Company’s business and promote its industry influence; and (iv) improve profitability of the
Group.
– 30 –
(i) Accelerate the positioning of the Company as the flagship clean energy listed subsidiary of
SPIC
With reference to the Board Letter, the Acquisitions involve acquisition of power generation
project with a total capacity of 9,268.3MW, including 7,531.7MW in operation and 1,736.6MW
under construction. Upon completion of the Acquisitions, it is expected that the proportion of the
Company’s installed capacity of clean energy will increase by approximately 6.9 percentage points.
The Acquisitions will further consolidate the Company’s positioning as the flagship clean energy
listed subsidiary of SPIC, which in turn broadens the Company’s operation and development
potentials.
Industry overview
Electricity consumption in the PRC
Set out below are the electricity consumption in PRC and the clean energy consumption
(such as gas-fired power, hydropower, nuclear power and wind power) as a percentage of total
electricity consumption during the five years ended 31 December 2022, being the latest five
full-year statistics published by the China Electricity Council and the National Bureau of
Statistics of the PRC:
2018 2019 2020 2021 2022

Electricity consumption in the PRC
(billion kilowatt-hours) 6,844.9 7,225.5 7,511.0 8,312.8 8,637.2
Clean energy consumption to total
electricity consumption 22.1% 23.4% 24.3% 25.5% 25.9%
As shown in the table above, the electricity consumption in PRC recorded year-on-year
increase during each of the year 2019, 2020, 2021 and 2022. The electricity consumption in the
PRC increased from approximately 6,844.9 billion kilowatt-hours (‘‘kWh’’) in 2018 to
approximately 8,637.2 billion kWh in 2022, representing a compounded annual growth rate
(‘‘CAGR’’) of approximately 5.99%.
Furthermore, the clean energy consumption in the PRC as a percentage of total electricity
consumption also recorded year-on-year increase during each of the year 2019, 2020, 2021 and
2022. Such percentage increased from approximately 22.1% in 2018 to approximately 25.9% in
2022.
Electricity generated in the PRC
Set out below are the electricity generated in the PRC during the five years ended 31
December 2022, being the latest five full-year statistics published by the National Bureau of
2018 2019 2020 2021 2022

Electricity generated in the PRC
(billion kilowatt-hours) 7,111.8 7,503.4 7,779.1 8,534.3 8,848.7
As shown in the table above, the electricity generated in the PRC recorded year-on-year
increase during each of the year 2019, 2020, 2021 and 2022. The electricity generated in the
PRC increased from approximately 7,111.8 billion kWh in 2018 to approximately 8,848.7
billion kWh in 2022, representing a CAGR of approximately 5.61%.
– 31 –
Total installed power generation capacity in the PRC
Set out below are the total installed power generation capacity in the PRC and the
proportion of different types of installed power generation capacity during the five years ended
31 December 2022, being the latest five full-year statistics published by the National Bureau of
2018 2019 2020 2021 2022

Total installed power
generation capacity in the
PRC (MW) 1,899,670 2,010,660 2,200,580 2,376,920 2,564,050
Proportion of different types of
installed power generation
capacity:
Thermal power 60.2% 59.2% 56.6% 54.6% 52.0%
Hydropower 18.5% 17.7% 16.8% 16.5% 16.2%
Nuclear power 2.4% 2.4% 2.3% 2.2% 2.2%
Wind power 9.7% 10.5% 12.8% 13.8% 14.3%
Photovoltaic power 9.2% 10.2% 11.5% 12.9% 15.3%
As shown in the table above, the total installed power generation capacity in the PRC
recorded year-on-year increase during each of the year 2019, 2020, 2021 and 2022. The total
installed power generation capacity in the PRC increased from approximately 1.90 million MW
in 2018 to approximately 2.56 million MW in 2022, representing a CAGR of approximately
7.79%.
Furthermore, the installed renewable energy generation capacity in the PRC (i.e.
hydropower, wind power and photovoltaic power) as a percentage to the total installed power
generation capacity increased from approximately 37.4% in 2018 to approximately 45.8% in
2022, representing an increase of approximately 8.4 percentage points.
Relevant policies
In recent years, the PRC government issued various policies or made several decisions
which are favourable to the development of the renewable energy industry in the PRC, such as
《關於加快建立健全綠色低碳循環發展經濟體系的指導意見》(the Guiding Opinions on
Accelerating the Establishment and Improvement of a Green and Low-carbon Circular
Development Economic System*), 《中華人民共和國國民經濟和社會發展第十四個五
年(2021–2025)規劃和2035年遠景目標綱要》(the 14th Five-Year Plan for National Economic
and Social Development of the PRC (2021–2025) and the Outline of Long-term Objectives for
2035*), 《‘‘十四五’’城鎮生活垃圾分類和處理設施發展規劃》(14th Five-Year Plan for Urban
Domestic Waste Classification and Treatment Facility Development Plan*), and 《2030年前碳
達峰行動方案》(the Action Plan for Carbon Dioxide Peaking Before 2030*), etc.
In addition to the abovementioned policies, we also noted that on 6 April 2023, National
Energy Administration of the PRC issued《2023年能源工作指導意見》(Guiding Opinions on
Energy Work in 2023*), which outlined the main objectives of 2023, including (i) the
continuous improvement of energy supply assurance and targeting that the production level of
coal remains reasonable; (ii) the steady reduction in proportion of coal consumption to total
energy consumption and the increase in proportion of non-fossil energy in the total energy
consumption to approximately 18.3% (2022 proposal: 17.3%); and (iii) the increase in
proportion of wind and photovoltaic power generation to the total social electricity
consumption to 15.3% (2022 proposal: 12.2%).
Having considered the above, we are of the view that the prospect of the PRC’s clean
energy industry is generally positive and we concur with the Directors that the Acquisitions will
accelerate the positioning of the Company as the flagship clean energy listed subsidiary of
SPIC.
– 32 –
(ii) Firmly implement the new development strategy of the Company
With reference to the 2022 Annual Report, as of the end of 2022, the Group increased the
installed capacity of clean energy by 5.9 gigawatts (‘‘GW’’) and the proportion of installed capacity
of clean energy reached approximately 65%. During FY2022, the Group completed the Previous
Acquisitions for high-quality wind power, photovoltaic and environmental power generation assets
with a total installed capacity of approximately 2.16GW which was consolidated into the Group.
Focusing on achieving the goal of raising the Company’s installed capacity of clean energy to over
70% by 2023, the Group will prioritize the development of large-scale new energy base projects and
expand the Group’s integrated intelligent energy businesses.
With reference to the Board Letter and as detailed above, the Target Companies are principally
engaged in clean energy power generation, mainly including wind power and photovoltaic power
with total capacity of 9,268.3MW, including 7,531.7MW in operation and 1,736.6MW under
construction. Based on the Group’s total consolidated installed capacity of approximately 31.60 GW
and the Group’s consolidated installed capacity of clean energy of approximately 20.52GW as at 31
December 2022, upon Completion, the Group’s consolidated installed capacity of clean energy shall
increase to approximately 28.05GW and shall account for approximately 71.7% of the Group’s total
consolidated installed capacity.
Given (i) the Group’s goal to raise the Company’s installed capacity of clean energy to over
70% by 2023; (ii) that all Target Companies are principally engaged in clean energy power
generation with installed capacity of approximately 7.53GW in operation, we concur with the
Directors that the Acquisitions are in line with the Group’s development strategy.
(iii) Expand regional layout of the Company’s business and promote industry influence
With reference to the Board Letter, the Acquisitions involve assets located in 21 provinces in
the PRC, mainly in regions such as Shanxi, Inner Mongolia, Heilongjiang, Ningxia, Shandong,
Xinjiang and Guangdong, which will significantly strengthen the Company’s industry influence in the
power markets in various regions as well as upstream and downstream industry chains, therefore
creating better opportunities for the Company’s future development.
As noted from the 2022 Annual Report, the Group’s wind power plants are primarily located in
Guangxi, Hunan and Shanxi and the Group’s photovoltaic power station are primarily located in
Ningxia, Shanxi and Hubei, based on the consolidated installed capacity.
Based on the above, we concur with the Directors that the Acquisitions enable the Company to
expand the regional layout of its business and promote its industry influence.
(iv) Improve profitability of the Group
With reference to the Board Letter, the Acquisitions will provide stable and attractive earnings
which are expected to improve the Group’s overall operating results and therefore the
competitiveness of the Group. The profitability of these assets can be further enhanced (which will
in turn contribute to the profitability of the Group) through subsequent technical transformation,
capital coordination and management synergy.
As detailed above, each of the Target Companies (together with their relevant subsidiaries)
recorded profit after taxation for FY2022 with combined profit after taxation of approximately
RMB1.18 billion for FY2022. As the Target Companies will become subsidiaries of the Company
after Completion, the Directors expected that the Group’s revenue base and profitability will be
enhanced as a result of Completion.
Therefore, we concur with the Directors that the Acquisitions will improve the profitability of
the Group upon Completion.
– 33 –
In light of the above, we concur with the Directors that the Acquisitions are conducted in the
ordinary and usual course of business of the Group and in the interests of the Company and the
Shareholders as a whole.
Principal terms of the Acquisitions
Summarised below are the major terms of the Acquisitions, details of which are set out under
the section headed ‘‘A. ACQUISITION AGREEMENTS’’ of the Board Letter.
Agreement I Agreement II
Date 26 July 2023 26 July 2023
Parties (i) the Company (as the Purchaser) (i) the Company (as the Purchaser)
(ii) SPIC (as the Seller) (ii) SPIC Guangdong and CPCEC (as
the Sellers)
Assets to be The Company has conditionally agreed The Company has conditionally agreed
acquired to acquire, and SPIC has conditionally to acquire, and SPIC Guangdong and
agreed to sell, Equity Interests I. CPCEC have conditionally agreed to
sell, Equity Interests II.
Consideration The total consideration for the The total consideration for the
acquisition of Equity Interests I is acquisition of Equity Interests II is
RMB8,811,044,100, subject to RMB1,974,016,700.
adjustment of not more than
RMB400,000,000. Pursuant to the Agreement II, the
consideration for the acquisition of
Pursuant to the Agreement I, the Equity Interests II is to be satisfied by
consideration for the acquisition of the Company in cash.
Equity Interests I is to be satisfied by
the Company in cash.
Details of the allocation of the

consideration for the acquisition of
Equity Interests I are set out under the
sub-section headed ‘‘The consideration
allocated to each of the Equity
Interests’’ of the section headed ‘‘A.
THE ACQUISITION AGREEMENTS’’
of the Board Letter.
Completion Subject to relevant provisions in Agreement I and Agreement II, the parties to the
relevant Acquisition Agreement could proceed to Completion of any Target
Company after conditions precedent (details of which are set out in the sub-
section headed ‘‘Conditions precedent to the Acquisition Agreements’’ under the
section headed ‘‘A. THE ACQUISITION AGREEMENTS’’ of the Board Letter) in
relation to such Target Company having been satisfied.
Settlement of the The settlement of the consideration for the Acquisitions shall be made in cash and
consideration for shall be paid by instalments after Completion. Details of the settlement terms are
the Acquisition set out under the sub-section headed ‘‘Settlement of the Consideration for the
Acquisitions’’ under the section headed ‘‘A. THE ACQUISITION
AGREEMENTS’’ of the Board Letter.
– 34 –
Basis of consideration
The consideration under the Agreement I was arrived at after arm’s length negotiations between
the Company and SPIC and was based on (i) the appraised value set out in the Asset Appraisal
Reports in respect of the Target Companies I; (ii) the percentage of equity interest in Target
Companies I to be acquired by the Company.
The consideration under the Agreement II was arrived at after arm’s length negotiations
between the Company, SPIC Guangdong and CPCEC and was primarily based on the appraised value
set out in the Asset Appraisal Report in respect of Target Company II.
Asset Appraisal Reports
To assess the fairness and reasonableness of the consideration of the Acquisitions, we obtained
and reviewed the Asset Appraisal Reports. We noted that (i) the Asset Appraisal Reports of
Heilongjiang Company, Beijing Company and Shanxi Company were prepared by PCAA; (ii) the
Asset Appraisal Reports of Fujian Company and Jieyang Company were prepared by Zhongtianhua;
and (iii) the total appraised value of the Target Companies as at the Appraisal Benchmark Date was
approximately RMB15.53 billion, concluded by using income approach.
For our due diligence purpose, we reviewed and enquired into (i) the terms of engagement of
PCAA as jointly engaged by the Company and the respective Target Companies; (ii) the terms of
engagement of Zhongtianhua as jointly engaged by (a) the Company; and (b) the Fujian Company or
SPIC Guangdong (as the case may be); (iii) both PCAA and Zhongtianhua’s qualification in relation
to the preparation of the Asset Appraisal Reports; and (iv) the steps and due diligence measures taken
by both PCAA and Zhongtianhua for conducting the asset appraisals.
Qualification and independence
From the mandate letters and other relevant information provided by both PCAA and
Zhongtianhua, and based on our interview with each of PCAA and Zhongtianhua, we were satisfied
with the terms of engagements of both PCAA and Zhongtianhua as well as both of their qualification
for the preparation of the Assets Appraisal Reports.
Despite that PCAA was jointly engaged by the Company and SPIC; while Zhongtianhua was
jointly engaged by the Company and SPIC or SPIC Guangdong (as the case may be), having
considered the following factors, including:
(i) as required under provision four of《資產評估基本準則》(Asset Evaluation Standards-

Basic Standards*, the ‘‘Valuation Standards’’) as issued by Ministry of Finance of the
PRC and updated in 2017, asset appraisal institution and its professional staff shall carry
out asset appraisal activities in accordance with provisions of laws and administrative
regulations, uphold to the principle of independence, objectivity and impartiality;
(ii) as required under provision six of the Valuation Standards, when asset appraisal
institution and its professional staff shall carry out asset appraisal activities, they (a)
should perform independently in analysing, evaluating and forming their opinion; (b)
should not be affected by client or its relevant persons; and (c) should not determine the
value on pre-setting basis;
(iii) 《資產評估職業道德準則－獨立性》(Code of Professional Ethics for Asset Evaluation-

Independence*) as issued by China Appraisal Society in 2012 further elaborate and
emphasis the independence of asset appraisal institution and certified valuers;
(iv) based on the public information and the 2022 Annual Report, none of the shareholders of
PCAA or Zhongtianhua owned more than 10% equity interests in the Company and none
of the substantial Shareholders were shareholders of either PCAA or Zhongtianhua as at
31 December 2022;
– 35 –
(v) the selection of PCAA and Zhongtianhua was by way of bidding and tendering process;
and
(vi) upon our request, both PCAA and Zhongtianhua confirmed that they are independent to
the Group, the Target Companies and the Sellers,
we are satisfied with the independence of both PCAA and Zhongtianhua in respect of the preparation
of the Asset Appraisal Reports.
Methodologies
We also reviewed the Asset Appraisal Reports and enquired into both PCAA and Zhongtianhua
on the methodologies adopted and the basis and assumptions adopted in arriving at the Asset
Appraisals in order for us to understand the Asset Appraisal Reports. Key assumptions of Asset
Appraisal Reports are set out in Appendix V to the Circular. We noted from the Asset Appraisal
Reports that each of the Asset Appraisal Reports were prepared by PCAA or Zhongtianhua (as the
case may be) in accordance with various requirements/standards, including the Valuation Standards
as issued by the Ministry of Finance of the PRC. According to the Valuation Standards, (i) the
fundamental valuation approaches of assets valuation include income approach, market approach and
asset-based approach, and (ii) the valuer should analyse the applicability of the three fundamental
valuation approaches and select the valuation methodology.
In preparing the Asset Appraisal Reports, both PCAA and Zhongtianhua concluded the
respective appraisal with income approach. We noted from the Asset Appraisal Reports that, in
assessing the appraised value of each Target Companies under income approach, both PCAA and
Zhongtianhua had (1) assessed the enterprise value of the Target Companies (company level) using
income approach; (2) assessed the appraised value of the excess cash and other non-operating assets
and liabilities (including long-term investments in investee companies, with the appraised value of
such representing a significant portion of the non-operating assets and liabilities); and (3) added (1)
and (2) above to arrive at the appraised value of the Target Companies (consolidated level).
With reference to (i) the Asset Appraisal Reports of Beijing Company, Heilongjiang Company
and Shanxi Company prepared by PCAA; and (ii) the Asset Appraisal Report of Fujian Company
prepared by Zhongtianhua, and as confirmed by both PCAA and Zhongtianhua, PCAA and
Zhongtianhua considered each of the fundamental valuation approaches and we understood that:
. as companies operate in the clean energy industry, the approved electricity price of the
relevant power plants (as invested by these companies) at the time of grid-connection
were significantly higher than that as at the Appraisal Benchmark Date and thus the
replacement cost method under asset-based approach may not reflect the value of these
power plants. Furthermore, as platform companies which principally engaged the
management of the investee companies, the costs of such activities and their impacts on
the enterprise value are required to be adequately assessed according to applicable
valuation standards. Given that (a) replacement cost method may not reflect the value of
the power plants which the relevant Target Companies invested in; (b) the nature of asset-
based approach (which only assessed the value of a company by the value of its individual
assets and liabilities); and (c) such requirement by the applicable valuation standards,
asset-based approach is not applicable for the appraisals of Beijing Company,
Heilongjiang Company, Shanxi Company and Fujian Company;
. as the companies principally engaged in the operation of wind power stations and
photovoltaic power stations, information on comparable listed companies or comparable
transactions with targets similar to these Target Companies are publicly available.
Therefore, market approach is applicable for the appraisals of Beijing Company,
Heilongjiang Company, Shanxi Company and Fujian Company (on a consolidation basis);
and
– 36 –
. as the companies are profitable on its own and the management of the respective company
had provided profit forecast data for the future years, according to the historical operating
data of the respective companies and the internal and external operating environment, the
future level of profit of the enterprise can be reasonably forecasted. Therefore, income
approach is applicable for the appraisals of Beijing Company, Heilongjiang Company,
Shanxi Company and Fujian Company.
We noted from the Asset Appraisal Reports of Beijing Company, Heilongjiang Company,
Shanxi Company and Fujian Company that, despite both market approach and income approach are
applicable for the appraisals of Beijing Company, Heilongjiang Company, Shanxi Company and
Fujian Company, both PCAA and Zhongtianhua considered that (i) the results of income approach
comprehensively considered the equity value of the companies through their operational
characteristics and future development plans; and (ii) although various adjustments were applied to
the appraisee and the comparable transactions when conducting the appraisal under market approach,
there are uncertainties and factors (such as difference in gross profit margin, return on assets and
fixed assets turnover rate) that are unable to adjust given the uniqueness of each comparable
transaction. As such, PCAA and Zhongtianhua had rejected the results of market approach and
adopted the results of income approach when concluding the appraisals of Beijing Company,
Heilongjiang Company, Shanxi Company and Fujian Company.
With reference to the Asset Appraisal Report of Jieyang Company prepared by Zhongtianhua
and as confirmed by Zhongtianhua, Zhongtianhua considered each of the fundamental valuation
approaches and we understood that:
. Jieyang Company has complete financial information with vast sources of information to
obtain relevant data to calculate the replacement costs of each asset. Therefore, asset-
based approach is applicable for the appraisal of Jieyang Company;
. Jieyang Company is an offshore wind power project company with a relatively short
operation period after being connected to the power grid. As there are limited number of
transactions of similar offshore wind power project within the region which Jieyang
Company operates, and the incomparability between onshore wind power projects/
company and offshore wind power projects/company. Therefore, market approach is not
applicable for the appraisal of Jieyang Company; and
. Zhongtianhua considered Jieyang Company possesses the ability to continue as a going

concern and will be able to generate profits in the future, based on Zhongtianhua’s
understanding on Jieyang Company’s business nature, asset scale, historical operating
conditions, predictability of future income, adequacy of the information obtained and their
understanding on the clean energy power generation industry. Therefore, income approach
is applicable for the appraisal of Jieyang Company.
We noted from the Asset Appraisal Report of Jieyang Company that, despite asset-based
approach and income approach are applicable for the Jieyang Company’s appraisal, Zhongtianhua
considered that (i) the results of income approach comprehensively considered the equity value of the
Jieyang Company through its operational characteristics and future growth potential; and (ii) the
results of asset-based approach are based on the asset and liability of Jieyang Company, which may
not reflect the value of Jieyang Company given its power generation qualification, wind resources
and management team that contributes to Jieyang Company’s income. As such, Zhongtianhua had
rejected the results of asset-based approach and adopted the results of income approach when
concluding the appraisal of Jieyang Company.
Having considered that (i) the Asset Appraisal Reports were prepared by PCAA or
Zhongtianhua (as the case may be) in accordance with various requirements/standards; and (ii) both
PCAA and Zhongtianhua considered each of the fundamental valuation approaches before selecting
income approach over other approaches despite the applicability of the other two valuation
– 37 –
approaches to the appraisals of the Target Companies, we are of the view that the adoption of income
approach for the appraisals of the Target Companies is fair and reasonable and we did not consider
other approaches to assess the appraisals of the Target Companies. Both PCAA and Zhongtianhua
also confirmed that the income approach is one of the commonly adopted approaches for valuation of
companies and is also consistent with normal market practice.
As both PCAA and Zhongtianhua adopted income approach to conduct the appraisals of the
Target Companies (which is regarded as profit forecast pursuant to the Listing Rules), the Joint
Financial Advisers and the reporting accountants of the Company issued letter/report on profit
forecast. Please refer to Appendix VI and Appendix VII to the Circular for details.
Basis and assumptions
As aforementioned, the appraised value of the Target Companies (consolidated level) was
derived by the Valuer after assessing (1) the enterprise value of the Target Companies (company
level); and (2) the appraised value of the excess cash and other non-operating assets and liabilities of
the Target Companies (including long-term investments in investee companies). In addition to
income approach in assessing the appraised value of each Target Companies, asset-based approach
was also adopted in assessing the appraised value of certain investee companies (please refer to the
sub-section headed ‘‘2.2 Investee companies under asset-based approach’’ below for details). To
assess the fairness and reasonableness of the appraisals of the Target Companies, we conducted the
following works on the methodology, bases and assumptions used in arriving at the appraised values
of the Target Companies.
1 Enterprise value of the Target Companies (company level)
1.1 Enterprise value of Beijing Company, Heilongjiang Company and Fujian Company
(collectively, the ‘‘Platform Companies’’)
Upon our enquiry, we understood from both PCAA and Zhongtianhua that the Platform
Companies are investment holding companies which mainly derived their income (if any) from
managing these investee companies. As such, the forecasted income (if any) and the forecasted costs
of the Platform Companies were formulated with reference to (i) the expected costs to be incurred
from managing their respective investee companies; (ii) the expected remaining useful lives of the
power generation plants; and (iii) if applicable, the allocation basis of the forecasted costs based on
the installed capacity of the relevant plants.
We understood from the Directors that the useful lives of the photovoltaic plants are generally
25 years from the date of its grid-connection and the useful lives of the onshore wind farms are
generally 20 years from the date of its grid-connection. We reviewed the forecasted period of the
relevant companies and noted that each of the forecasted period is consistent with such assumption.
The discount rate (weighted average cost of capital of the Platform Companies, which was
calculated by multiplying the cost of each capital source (debt and equity) by its relevant weight and
then adding the products together) applied to the appraisal of the Platform Companies ranged from
7.64% to 7.72%.
We noted that both PCAA and Zhongtianhua adopted the capital asset pricing model
(‘‘CAPM’’) to assess the cost of equity of the Platform Companies for the relevant appraisals. In
arriving at the cost of equity, both PCAA and Zhongtianhua took into account a number of factors
including (1) risk-free rate; (2) market risk premium; (3) beta; and (4) specific risk premium.
For our due diligence purpose, we conducted the following works:
. We searched through the internet and noted that the CAPM technique is widely adopted
for the purpose of estimating the required rate of return on equity;
– 38 –
. We noted the risk-free rates adopted by PCAA and Zhongtianhua were 2.85% and 3.67%
respectively, which were determined with reference to the interest rates of 10-year
government bonds; or the interest rates of 10-year and above government bonds as at the
Appraisal Benchmark Date;
. We obtained the list of comparable companies used for the calculation of the re-levered
beta. We cross-checked the beta of the selected comparable companies through Wind
Financial Terminal and noted that the beta adopted by both PCAA and Zhongtianhua are
in line with our findings;
. We noted that the market risk premium adopted by PCAA and Zhongtianhua for the
appraisal of the Platform Companies were 7.07% and 5.39% respectively, which were
determined with reference to the China Securities Index 300 yield indicator;
We noted the cost of debt adopted by PCAA for the appraisal of Beijing Company and
Heilongjiang Company was 3.44%, which was determined with reference to the long-term loan prime
rate in the PRC.
We noted the cost of debt adopted by Zhongtianhua for the appraisal of Fujian Company was
3.36%, which was determined with reference to Fujian Company’s weighted average effective
interest rate.
1.2 Enterprise value of Shanxi Company and Jieyang Company
Upon our enquiry, we also understood from PCAA and Zhongtianhua that:
(i) as (a) Shanxi Company is principally engaged in the generation of photovoltaic power
through the operation of photovoltaic plant; and (b) Jieyang Company is principally
engaged in the generation of offshore wind power through the operation of wind farm, the
financial projections of Shanxi Company and Jieyang Company were forecasted based on
the expected remaining useful lives of the photovoltaic plant or offshore wind farm which
they operate.
As aforementioned, the useful lives of the photovoltaic plants are generally 25 years from
the date of its grid-connection and, as further advised by the Directors, the useful lives of
the offshore wind farms are generally 25 years from the date of its grid-connection. We
reviewed the forecasted period of the relevant companies and noted that each of the
forecasted period is consistent with such assumption.
(ii) operating income were forecasted based on (a) the capacity of the photovoltaic plant or
the wind farm; (b) the expected utilisation hours of photovoltaic/offshore wind power
generating units, (c) expected grid-connected power volume (in terms of megawatt-hour
(‘‘MWh’’)); and (d) the expected income from sale of electricity and expected
government subsidy in respect of the generation of photovoltaic/wind power.
For our due diligence purpose, we obtained and reviewed historical data of both Shanxi
Company and Jieyang Company. We noted that (1) the capacity of the photovoltaic plant
or wind farm for the forecasted period are in line with their respective existing capacity;
and (2) the expected utilisation hours of photovoltaic/wind power generating units, the
expected grid-connected power volume (in terms of MWh) and the expected unit price
(including government subsidy) in respect of the generation of photovoltaic/wind power
are determined with reference to the historical average data.
(iii) operating expenditures including depreciation, amortisation, staff costs and repair and
maintenance costs, which were determined with reference to the historical data or the
existing operating conditions of Shanxi Company and Jieyang Company. We cross-
– 39 –
checked the forecasted operating expenditures against the historical data of both Shanxi
Company and Jieyang Company and noted that forecasted operating expenditures are
generally in line with the respective historical data with reasonable growth rate adopted.
(iv) the discount rates (weighted average cost of capital, which were calculated by multiplying
the cost of each capital source (debt and equity) by its relevant weight and then adding the
products together) of Shanxi Company and Jieyang Company applied to the appraisal
ranged from 7.00% to 7.72%, taking into account the difference in applicable tax rates
throughout the expected life of the relevant offshore wind farms. In determining the
discount rates of Shanxi Company and Jieyang Company, PCAA and Zhongtianhua
adopted the same methodology and the same parameter selection basis as those for
determining the discount rates of the Platform Company detailed above.
2 Appraised value of the long-term investment in investee companies
2.1 Investee companies under income approach
With reference to the Asset Appraisal Reports and as confirmed by both PCAA and
Zhongtianhua, both PCAA and Zhongtianhua considered each of the fundamental valuation
approaches before concluding the appraisals of the investee companies using income approach and
we understood that these investee companies are principally engaged in the generation of
photovoltaic or wind power through the operation of photovoltaic plants or wind farms, the expected
income and expenses of these investee companies can be reasonably predicted based on their
business nature, operating scale and historical operating status and the future operating period of the
subject companies can be estimated based on the remaining life of the relevant power generation
units/projects. As such, income approach is applicable for the appraisal of these investee companies.
Having considered that (i) the appraisal of the investee companies under income approach were
prepared by either PCAA or Zhongtianhua in accordance with various requirements or standards; and
(ii) both PCAA and Zhongtianhua considered each of the fundamental valuation approaches and
PCAA and Zhongtianhua’s rationale in selecting income approach for the appraisal of these investee
companies, we are of the view that the adoption of income approach for the appraisal of these
investee companies is fair and reasonable and we did not consider other approaches to assess the
appraisal of these investee companies.
Upon our enquiry, we also understood from PCAA and Zhongtianhua that:
(i) as these investee companies are primarily engaged in the generation of photovoltaic
power through the operation of photovoltaic plants and/or the generation of wind power
through the operation of wind farms, the financial projections of these investee companies
were mainly forecasted based on the expected remaining useful lives of the photovoltaic
plant or wind farm which they operate.
As aforementioned, the useful lives of photovoltaic plants are generally 25 years from the
date of its grid-connection; the useful lives of onshore wind farms are generally 20 years
from the date of its grid-connection; and the useful lives of offshore wind farms are
generally 25 years from the date of its grid-connection. We also reviewed the forecasted
period of these investee companies and noted that each of the forecasted period is
consistent with such assumption.
– 40 –
(ii) operating income were forecasted based on (a) the capacity of the photovoltaic plant or
the wind farm; (b) the expected utilisation hours of photovoltaic/wind power generating
units, (c) expected grid-connected power volume (in terms of MWh); and (d) the expected
income from sale of electricity and expected government subsidy in respect of the
generation of photovoltaic/wind power.
For our due diligence purpose, we also obtained and reviewed historical data in respect of
these investee companies and noted that (1) the capacity of the photovoltaic plant or wind
farm for the forecasted period are in line with their respective existing capacity; and (2)
the expected utilisation hours of photovoltaic/wind power generating units, the expected
grid-connected power volume (in terms of MWh) and the expected unit price (including
government subsidy) in respect of the generation of photovoltaic/wind power are
determined with reference to the historical average data.
(iii) operating expenditures including depreciation, amortisation, staff costs and repair and
maintenance costs, which are determined with reference to the historical data or the
existing operating conditions of the relevant company. We cross-checked the forecasted
operating expenditures against the historical data of each of the subject companies and
noted that forecasted operating expenditures are generally in line with the historical data
with reasonable growth rate adopted.
(iv) the discount rates (weighted average cost of capital, which were calculated by multiplying
the cost of each capital source (debt and equity) by its relevant weight and then adding the
products together) of the investee companies that engaged in the generation of
photovoltaic power through the operation of photovoltaic plants or the generation of wind
power through the operation of wind farms, being majority of the investee companies held
by the relevant Target Companies, applied to the appraisal ranged from 6.96% to 7.72%.
In determining the discount rates of each individual investee companies, PCAA and
Zhongtianhua adopted the same methodology and the same parameter selection basis as
those for determining the discount rates of the Platform Company as detailed above.
2.2 Investee companies under asset-based approach
With reference to the Asset Appraisal Reports and as confirmed by both PCAA and
Zhongtianhua, both PCAA and Zhongtianhua concluded the appraisal of these investee companies
using asset-based approach given that these investee companies are (i) investment holding companies
with no actual expenses incurred; (ii) involved in clean energy projects that are in preliminary stages
with limited upfront costs incurred; or (iii) newly established companies without sufficient
information for PCAA or Zhongtianhua to comprehensively assess its appraised value using income
approach or market approach.
For investee companies that are solely established for the purpose of holding investments and
investee companies involved in clean energy projects that are in preliminary stages with limited
upfront costs incurred, the appraised values were determined with reference to the appraised value of
the individual assets and liabilities.
For investee companies that are newly established without sufficient information for PCAA or
Zhongtianhua to comprehensively assess its appraised value using income approach or market
approach, the appraised values were determined based on the investment amounts and the percentage
of shareholding in the investee companies.
– 41 –
Having considered the aforementioned (including our analyses and workdone), we do not doubt the
reasonableness of the assumption used in the appraisals of the Target Companies.
With reference to the Board Letter, the consideration for the acquisition of Equity Interests I is
subject to adjustment of not more than RMB400,000,000 in total by (i) any dividend attributable to the
profits generated from the Target Companies I up to the Appraisal Benchmark Date to be distributed by
Target Companies I to their original shareholders prior to Completion; (ii) the changes to the financial
position and operating results of Target Companies I as a result of any dividend to be distributed by the
relevant companies (to which the Reorganization Equity Interests relate) to their original shareholders prior
to completion of the Pre-Acquisition Reorganization; and (iii) any other matters as agreed between the
Company and SPIC.
For our due diligence purpose, we obtained the relevant resolutions in respect of the distribution of
dividends attributable to the profits generated from Target Companies I up to the Appraisal Benchmark
Date. We noted that the dividends attributable to the percentage of equity interest represented by Equity
Interests I were less than RMB400,000,000.
We summarised the appraised value of the Target Companies as at Appraisal Benchmark Date, the
percentage of equity interest represented by the relevant Equity Interests, and the consideration for Equity
Interests for the Acquisitions as follows:
Appraised value Percentage of

of Target equity interest
Companies as at represented by Consideration
the Appraisal the relevant for the relevant
Benchmark Date Equity Interests Equity Interests
(A) (B) (C)
(RMB’000) (RMB’000)
Beijing Company 10,572,727.2 55.15% 5,830,859.1
Heilongjiang Company 1,111,880.0 100% 1,111,880.0
Fujian Company 1,251,355.0 100% 1,251,355.0
Shanxi Company 616,950.0 100% 616,950.0
Jieyang Company 1,974,016.7 100% 1,974,016.7
Total 15,526,928.9 10,785,060.8
As the considerations of the Equity Interests equal to the appraised values of the Target Companies
multiplied by percentage of equity interest represented by the relevant Equity Interests (i.e. C = A x B), we
are of the view that the considerations for the Acquisitions are fair and reasonable.
Transitional period
Pursuant to the Acquisition Agreements, (i) the profit and loss of Target Companies during the
transitional period (i.e. a period commencing from the Appraisal Benchmark Date (i.e. 31 March 2023) to
the Completion Date) shall be enjoyed or borne by the transferee; and (ii) the transferors guarantee that the
loss incurred by the respective Target Companies during the transitional period shall not exceed 5% of
their respective appraised value. We also noted from the Acquisition Agreements that, during the
transitional period, the transferor shall manage the Target Companies and its assets with the duty of care
to ensure that no material adverse change to the Target Companies and its assets (other than any dividend
declared by the relevant Target Company to be distributed).
Having considered that the considerations of the Acquisitions were based on, among other things, the
appraised values the Target Companies (by income approach) as at 31 March 2023; and the profit or loss
from Appraisal Benchmark Date to the Completion Date was considered in the process of the asset
appraisals, we consider the arrangement for profit and loss during the transitional period to be reasonable.
– 42 –
Put Option under the Acquisition Agreements
Pursuant to the Acquisition Agreements and with reference to the Board Letter, if any of the Target
Companies or any of their respective subsidiaries is (i) unable to comply with any applicable laws or
regulations, or (ii) there occurs any non-compliance relating to land use or failure to complete property
ownership registration, and such occurrence has a significant impact on the operations of any of the Target
Companies or any of their respective subsidiaries such that there is a risk of rendering any of the Target
Companies or any of their respective subsidiaries becoming unable to continue its operations, the Company
shall have the right to require the Seller(s) or any third party appointed by the Seller(s) to buy back the
relevant Equity Interest(s) (or part thereof as it relates to any subsidiary) at a consideration not lower than
the appraised value of the relevant Equity Interest(s) (or part thereof as it relates to any subsidiary) as at
the time when the Put Option is exercised. No premium is payable for the grant of the Put Option to the
Company.
We consider such arrangement is in favour and in the interest of the Company.
Having reviewed and considered the terms of the Acquisition Agreements, in particular the key terms
as listed above and no abnormal term observed, we are of the view that the terms of the Acquisitions are on
normal commercial terms and are fair and reasonable.
Possible financial effects
With reference to the Board Letter, upon Completion, the Target Companies will become wholly-
owned subsidiaries of the Company (save for Beijing Company, which will be held as to 55.15% by the
Company) and the consolidated financial results of the Target Companies will be consolidated into the
Group’s financial statements.
The unaudited pro forma financial information of the Enlarged Group (the ‘‘Pro Forma
Information’’) is included in Appendix IV to the Circular.
As extracted from the 2022 Annual Report, the audited consolidated total assets and total liabilities
of the Group were approximately RMB211.4 billion and RMB142.8 billion as at 31 December 2022,
respectively. According to the Pro Forma Information, the unaudited consolidated total assets and total
liabilities of the Enlarged Group would be approximately RMB281.8 billion and RMB202.8 billion
respectively as if the Acquisitions had taken place on 31 December 2022.
It should be noted that the aforementioned analyses are for illustrative purposes only and do not
purport to represent how the financial position of the Group will be upon Completion.
Recommendation on the Acquisitions
Having taken into account the above factors and reasons, we are of the opinion that (i) the terms of
the Acquisitions are on normal commercial terms and are fair and reasonable; and (ii) the Acquisitions are
conducted in the ordinary and usual course of business of the Group and are in the interests of the
Company and the Shareholders as a whole. Accordingly, we recommend the Independent Board Committee
to advise the Independent Shareholders to vote in favour of the resolutions to be proposed at the General
Meeting to approve the Acquisitions and we recommend the Independent Shareholders to vote in favour of
the resolutions in this regard.
– 43 –
(2) REVISION
Information on SPIC Financial
With reference to the Board Letter, SPIC Financial was established in the PRC as a non-
banking financial institution on 2 September 1992. It is licensed and regulated by the CBIRC and is
engaged in the provision of financial services which principally include deposit taking, provision of
loans, issue of corporate debentures, inter-bank lending, as well as other financial services such as
finance leasing, bills acceptance and discounting, entrusted loans and entrusted investment,
arrangement of buyer’s credit for member companies’ products, underwriting of corporate debentures
of member companies, provision of financial advisory, credit certification and other advisory agency
services and guarantee services to members of the SPIC Group. SPIC Financial only provides
services to members of the SPIC Group under《企業集團財務公司管理辦法》(the Measures on
Administration of the Finance Companies of Enterprise Groups*, the ‘‘Administrative Measures’’)
promulgated by the CBIRC. SPIC Financial has a registered capital of RMB7.5 billion and is owned
as to 40.86% by SPIC and as to 59.14% by other wholly-owned and controlled members of the SPIC
Group, respectively.
Pursuant to the Administrative Measures, it regulates the operation of non-banking financial

institutions which provide financial management services to the enterprise group member entities.
The Administrative Measures set out certain compliance and risk control requirements/measures in
relation to the operation of group financing companies, including but not limited to maintaining
certain financial ratios at all times.
Based on our discussions with the management of SPIC Financial, we understood that the
CBIRC monitors SPIC Financial’s operations and compliance with relevant laws and regulations,
through on-site examinations and off-site surveillance, from time to time. The CBIRC may impose
corrective and punitive measures, including fines and ordering the suspension of certain business
activities. According to the management of SPIC Financial, the CBIRC has not taken any material
disciplinary actions, or imposed material penalties or fines on SPIC Financial for the two years ended
31 December 2022.
As further advised by the management of SPIC Financial, SPIC Financial is required to submit
quarterly compliance report regarding the business operation of SPIC Financial to the CBIRC.
Furthermore, pursuant to the Administrative Measures, in the event that a group finance
company faces any difficulty in making payment, its controlling shareholder(s) will increase such
group finance company’s capital accordingly based on the actual need. We noted from SPIC
Financial’s articles of association that SPIC, being the controlling shareholder of the Company,
undertook that SPIC will provide funding to SPIC Financial to satisfy its capital needs in the event
that SPIC Financial experiences any urgent payment difficulties.
In the event that the Group placed a substantial amount of deposits in the SPIC Financial for a
long period, the Group may face higher concentration risk (the ‘‘Concentration Risk’’) in relation to
maintaining a high level of cash deposits with one single finance company/institution. However,
having considered the factors including:
(i) SPIC, being the controlling shareholder of the SPIC Financial, undertook that SPIC will
provide funding to SPIC Financial to satisfy its capital needs in the event that SPIC
Financial experiences any urgent payment difficulties; and
(ii) as confirmed by the Directors:
. the Company will not deposit all of its cash and cash equivalents to the SPIC
Financial;
– 44 –
. the Company’s finance department will closely monitor the deposit services (the
‘‘Deposit Services’’) and enforcement news published from time to time; and
review regulatory report, monthly financial statement and monthly balance
statement provided by the SPIC Financial immediately after receiving the same;
. the Group will withdraw all of its deposits placed to the SPIC Financial if the SPIC
Financial fails to comply with any PRC regulatory requirement which may have
material adverse impact on the SPIC Financial’s financial and/or operational
positions; and
. the annual cap is a maximum daily balance, mainly to facilitate the possibility of
large cash inflow within a short period of time,
we consider that the Concentration Risk would be mitigated.
Reasons for and benefits of the Revision
As advised by the Directors, benefits of the entering into of the FS Framework Agreement
(including the Deposit Services) included, among other things, (i) enhancing efficiency of fund
utilisation; (ii) increasing interest income and finance cost saving; (iii) improving competitiveness;
(iv) facilitating fund management and control by the Group; and (v) risk assurance.
Pursuant to the FS Framework Agreement, the interest rate applicable to the Group for its
deposits with SPIC Financial during the same period shall not be lower than (i) the benchmark
interest rate specified by the PBOC of the same type of deposits; (ii) the interest rate of the same type
of deposits obtained from other major commercial banks in the PRC to the Group; and (iii) the
interest rate of same type of deposits placed by other members of the SPIC Group with SPIC
Financial. In addition, subject to the above, the applicable interest rate for the amount of the Group’s
deposit in current account(s) that exceeds RMB100,000, will be 23 basis points higher than, and
adjusted according to, the benchmark interest rate for agreements deposits (協定存款基準利率) as
published by the PBOC from time to time.
We further noted from the FS Framework Agreement that SPIC Financial has agreed to provide
the Group with the Deposit Services, settlement services, loan services and other financial services
approved by the CBIRC on a non-exclusive basis subject to the terms and conditions provided
therein. As further confirmed by the Directors, the Group will utilize the financial services of SPIC
Financial on a voluntary and non-compulsory basis and is not obliged to engage SPIC Financial for
any particular service.
In light of the above reasons, in particular, (i) the pricing policy of the Deposit Services; and
(ii) that the Group will utilize the financial services of SPIC Financial on a voluntary and non-
compulsory basis and is not obliged to engage SPIC Financial for any particular service, we consider
that the Deposit Services are in the interests of the Company and the Shareholders as a whole and are
conducted in the ordinary and usual course of business of the Group.
With reference to the Board Letter, the Existing FS Annual Cap was contemplated only for the
purposes of the continuing connected transactions between the Company (excluding the Target
Companies) and SPIC Financial under the FS Framework Agreement. Upon Completion, the
Company expects that the Existing FS Annual Cap will be exceeded, and therefore should be
adjusted upwards into the Revised FS Annual Cap (which will become effective upon Completion of
any Target Company).
Having considered (i) the reasons for and benefits of the Deposit Services as mentioned above;
(ii) the Existing FS Annual Cap was contemplated only for the purposes of the continuing connected
transactions between the Company (excluding the Target Companies) and SPIC Financial under the
FS Framework Agreement; and (iii) the Target Companies and its subsidiaries placed and shall
– 45 –
continue to place deposits in SPIC Financial, we concur with the Directors that the Revision is in the
interests of the Company and the Shareholders as a whole and is conducted in the ordinary and usual
course of business of the Group.
Principal terms of the Deposit Services and the Revision
The following table tabulates a summary of the major terms of the Deposit Services and the
Revision, details of which are set out in the section headed ‘‘III. REVISION OF ANNUAL CAP —
FINANCIAL SERVICES FRAMEWORK AGREEMENT’’ of the Board Letter:
Dates 6 May 2022 and 17 August 2023
Parties The Company; and SPIC Financial
Effective period For a term of three years from 7 June 2022 and ending on 6 June 2025
(both days inclusive).
Pricing principles The interest rate applicable to the Group for its deposits with SPIC
Financial during the same period shall not be lower than (i) the
benchmark interest rate specified by the PBOC of the same type of
deposits; (ii) the interest rate of the same type of deposits obtained
from other major commercial banks in the PRC to the Group; and (iii)
the interest rate of same type of deposits placed by other members of
SPIC Group with SPIC Financial.
In addition, subject to the above, the applicable interest rate for the
amount of the Group’s deposits in current account(s) that exceeds
RMB100,000, will be 23 basis points higher than, and adjusted
according to, the benchmark interest rate for agreements deposits (協
定存款基準利率) as published by the PBOC from time to time.
As advised by the Directors, to secure the interests of Shareholders, the Company adopted
certain internal control procedures and corporate governance measures (the ‘‘IC Measures’’) for
utilizing the financial services provided by SPIC Financial. Details of the IC Measures are set out in
the letter from the board as contained in the Company’s circular dated 18 May 2022. As there will be
interest rates monitoring and deposit rates collection procedures, we consider that the effective
implementation of the IC Measures would help to ensure fair pricing of the Deposit Service
according to the pricing policies.
Upon our request, we obtained deposit records showing (i) the Company placed deposits in
independent commercial banks and SPIC Financial; and (ii) members of SPIC Group placed deposits
in SPIC Financial, for the period from June 2022 to June 2023. We noted from the above deposit
records that the deposit rates as shown in the deposit records are in line with the deposit rates
requirements under the FS Framework Agreement. Accordingly, we do not doubt the effectiveness of
the IC Measures.
The Revised FS Annual Cap
Pursuant to the FS Framework Agreement Supplemental Agreement, the Revised FS Annual

Cap will not exceed RMB9.0 billion for (i) each of the years ending 31 December 2023 and 2024;
and (ii) the period from 1 January 2025 to 6 June 2025.
We noted that the Revised FS Annual Cap was determined after taking into account of various
factors, details of which are set out under the section headed ‘‘Revised FS Annual Cap and Basis of
Determination’’ of the Board Letter.
– 46 –
The table below sets out the historical highest daily deposit balance (including accrued
interests) in respect of the deposit services placed with SPIC Financial by the Group (without taking
into account transactions of the Target Companies):
For the period

from For the year
7 June 2022 to ending 31
31 December 2022 December 2023
(RMB billion) (RMB billion)
Historical highest daily deposit balance placed by
the Group (without taking into account
transactions of the Target Companies) 5.475 4.757 (Note)
Existing FS Annual Cap 5.5 5.5
Utilisation rates of the Existing FS Annual Cap 99.55% 86.49%
Note: the figure was for the five months ended 31 May 2023.
According to the above table, the utilisation rates of the Existing FS Annual Cap were
approximately 99.55% for the period from 7 June 2022 to 31 December 2022 and approximately
86.49% for the period from 1 January 2023 to 31 May 2023. Such utilisation rates were at high
levels.
To assess the fairness and reasonableness of the Revised FS Annual Cap, we conducted the
following analyses:
. As extracted from the 2022 Annual Report, as at 31 December 2022, the Group’s (i) cash
and cash equivalents were approximately RMB4.23 billion; and (ii) accounts receivable
was approximately RMB12.63 billion respectively. The summation of the aforesaid two
items were approximately RMB16.86 billion, which is greater than the Revised FS
Annual Cap and indicates the Group’s possible demand of deposit services to be provided
by commercial banks and SPIC Financial.
According to the Pro Forma Information, the unaudited consolidated cash and cash
equivalents; and accounts receivable of the Enlarged Group would be approximately
RMB7.46 billion and RMB20.84 billion respectively as if the Acquisitions had taken
place on 31 December 2022. The sum of the aforesaid two items (assuming if the
Acquisitions had taken place on 31 December 2022) would be approximately RMB28.31
billion, which is larger than the Revised FS Annual Cap, indicating the Enlarged Group’s
possible demand for deposit services to be provided by commercial banks and SPIC
Financial.
The Revised FS Annual Cap is approximately 63.64% higher than the Existing FS Annual
Cap. The increase is also in line with the approximately 67.86% increase in the
summation of (a) cash and cash equivalents; and (b) account receivables of the Enlarged
Group as compared to that of the Group as at 31 December 2022.
. With reference to the Board Letter, for the period from 7 June 2022 to 31 May 2023, the
maximum deposits placed with SPIC Financial by the Enlarged Group was approximately
RMB10.018 billion. The Revised FS Annual Cap of RMB9.0 billion is close to the
aforesaid maximum deposit amounts.
. As advised by the Directors, it is difficult to forecast the total cash level from the date of
effective of the FS Framework Agreement Supplemental Agreement to 6 June 2025 (the
‘‘Relevant Period’’). Nevertheless, should there be any substantial increase in total cash
of the Group, the Group may opt to deposit larger portion of cash in commercial banks or
re-comply with the applicable provisions of the Listing Rules governing continuing
connected transaction to revise the Revised FS Annual Cap.
– 47 –
Having also considered the above factors, we are of the view that the Revised FS Annual Cap,
which is the same during the Relevant Period, is fair and reasonable.
Having considered the above, including the principal terms of the Deposit Services and the
Revised FS Annual Cap, we are of the view that the terms of the Revision are fair and reasonable.
Listing Rules implication
The Directors confirmed that the Company shall comply with the requirements of Rules 14A.53
to 14A.59 of the Listing Rules pursuant to which (i) the Deposit Services must be restricted by the
Revised FS Annual Cap for the Relevant Period; (ii) the terms of the Deposit Services must be
reviewed by the independent non-executive Directors annually; (iii) details of independent non-
executive Directors’ annual review on the terms of the Deposit Services must be included in the
Company’s subsequent published annual reports.
Furthermore, it is also required by the Listing Rules that the auditors of the Company must
provide a letter to the Board confirming, among other things, whether anything has come to their
attention that causes them to believe that the Deposit Services (i) have not been approved by the
Board; (ii) were not entered into, in all material respects, in accordance with the relevant agreement
governing the transactions; and (iii) have exceeded the annual cap.
In the event that the maximum amounts of the Deposit Services are anticipated to exceed the
Revised FS Annual Cap, or that there is any proposed material amendment to the terms of the FS
Framework Agreement (as amended by the FS Framework Agreement Supplemental Agreement), as
confirmed by the Directors, the Company shall comply with the applicable provisions of the Listing
Rules governing continuing connected transaction.
With the stipulation of the above requirements for continuing connected transactions pursuant
to the Listing Rules, we are of the view that there are adequate measures in place to monitor the
transactions contemplated under the FS Framework Agreement (as amended by the FS Framework
Agreement Supplemental Agreement) and hence the interest of the Independent Shareholders would
be safeguarded.
Recommendation on the Revision
Having taken into account the above factors and reasons, we are of the opinion that (i) the terms
of the Revision are on normal commercial terms and are fair and reasonable; and (ii) the Revision is
conducted in the ordinary and usual course of business of the Group and is in the interests of the
Company and the Shareholders as a whole. Accordingly, we recommend the Independent Board
Committee to advise the Independent Shareholders to vote in favour of the resolution to be proposed
at the General Meeting to approve the Revision and we recommend the Independent Shareholders to
vote in favour of the resolutions in this regard.
Yours faithfully,
For and on behalf of
Gram Capital Limited
Graham Lam
Managing Director
Note: Mr. Graham Lam is a licensed person registered with the Securities and Futures Commission and a responsible officer of
Gram Capital Limited to carry out Type 6 (advising on corporate finance) regulated activity under the SFO. He has over 25
years of experience in investment banking industry.
* For identification purpose only
– 48 –
APPENDIX I FINANCIAL INFORMATION OF THE GROUP
1. SUMMARY OF FINANCIAL INFORMATION
The audited consolidated financial information of the Group for each of the three years ended 31
December 2020, 2021 and 2022 have been disclosed in the annual reports of the Company.
Details of the financial statements have been published on the Stock Exchange website
(http://www.hkexnews.hk) and Company website (http://www.chinapower.hk) and can be accessed by
the direct hyperlinks below:
(i) in respect of the annual report of the Company for the year ended 31 December 2022
published on 27 April 2023 (pages 143 to 265)
https://www1.hkexnews.hk/listedco/listconews/sehk/2023/0427/2023042703911.pdf
(ii) in respect of the annual report of the Company for the year ended 31 December 2021
(iii) in respect of the annual report of the Company for the year ended 31 December 2020
2. STATEMENT OF INDEBTEDNESS
As at the close of business on 30 June 2023, being the latest practicable date for the purpose of
ascertaining the indebtedness of the Enlarged Group prior to the printing of this circular, the Enlarged
Group had total issued debts of RMB157,573.4 million. Details of which are as follows:
RMB’000
Bank borrowings
— Secured and guaranteed 1,829,238
— Secured and unguaranteed 40,117,581
— Unsecured and guaranteed 431,050
— Unsecured and unguaranteed 71,053,232
Borrowings from related parties
Other borrowings
— Unsecured and guaranteed 29,340
Obligations under leases
— Secured and guaranteed 13,452
157,573,364
Save as aforesaid and apart from intra-group liabilities and normal trade and bills payables in the
ordinary course of the business, as at the close of business on 30 June 2023, the Enlarged Group did not
have other debt securities issued and outstanding, and authorized or otherwise created but unissued,
outstanding mortgages, charges, debentures or other loan capital, bank overdrafts or loans, other similar
indebtedness, finance leases or hire purchase commitments, liabilities under acceptance or acceptance
credits, guarantees or material contingent liabilities.
– I-1 –
APPENDIX I FINANCIAL INFORMATION OF THE GROUP
3. WORKING CAPITAL
The Directors are of the opinion that, taking into account the financial resources available to the
Enlarged Group, including the internally generated funds and the unutilized facilities from banks and a
related party and the available unutilized short-term commercial paper, the Enlarged Group has, in the
absence of unforeseeable circumstances, sufficient working capital for its present requirement for at least
12 months from the date of this circular.
4. FINANCIAL AND TRADING PROSPECTS OF THE GROUP
After the Acquisitions, the Group will continue to accelerate transformation and development,
devote significant efforts to develop clean energy, further proceed with the development of integrated
energy projects, provide reasonable planning for capital expenditure. In addition, the Group will
continue to leverage on the sustained and solid support from SPIC, to accelerate and facilitate the
injection of quality clean energy assets in order to enlarge the Group’s assets and business coverage, and
enhance its overall market competitiveness.
In light of the evolving economic and business environment, the Group constantly reviews its
existing operations from time to time. With the government policies encouraging clean energy power
and the broadened geographical base of the Group’s power projects, the Group remains optimistic on the
overall market environment and the Directors believe that the Group will continue to benefit from strong
power demand, operating costs control and improvement in overall efficiency, thereby enhancing the
Group’s profitability and the return to the Shareholders.
– I-2 –
APPENDIX IIA ACCOUNTANTS’ REPORT ON BEIJING COMPANY
ACCOUNTANTS’ REPORT ON BEIJING COMPANY

The following is the text of reports received from BDO Limited, Certified Public Accountants,
Hong Kong, for the purpose of incorporation in this circular.
ACCOUNTANTS’ REPORT ON HISTORICAL FINANCIAL INFORMATION OF SPIC BEIJING

ELECTRIC POWER CO., LTD AND ITS SUBSIDIARIES
TO THE DIRECTORS OF CHINA POWER INTERNATIONAL DEVELOPMENT LIMITED
Introduction
We report on the historical financial information of SPIC Beijing Electric Power Co., Ltd (國家電
投集團北京電力有限公司) (the ‘‘Target Company’’) and its subsidiaries (together, the ‘‘Target Group’’)
set out on pages IIA-3 to IIA-112, which comprises the consolidated statements of financial position, of
the Target Group as at 31 December 2020, 2021 and 2022 and 31 March 2023, the statements of
financial position of the Target Company as at 31 December 2020, 2021 and 2022 and 31 March 2023,
and the consolidated statements of profit or loss and other comprehensive income, the consolidated
statements of changes in equity and the consolidated statements of cash flows of the Target Group for
each of the years ended 31 December 2020, 2021 and 2022 and the three months ended 31 March 2023
(the ‘‘Track Record Period’’) and a summary of significant accounting policies and other explanatory
information (together the ‘‘Historical Financial Information’’). The Historical Financial Information set
out on pages IIA-3 to IIA-112 forms an integral part of this report, which has been prepared for
inclusion in the circular of China Power International Development Limited (the ‘‘Company’’) dated 18
August 2023 (the ‘‘Circular’’) in connection with the proposed major and connected transactions in
related to the acquisitions of the equity interests in the Target Company.
Directors’ responsibility for the Historical Financial Information
The directors of the Target Company are responsible for the preparation of the Historical Financial
Information that gives a true and fair view in accordance with the basis of preparation set out in Note 2
to the Historical Financial Information, and for such internal control as the directors determine is
necessary to enable the preparation of the Historical Financial Information that is free from material
misstatement, whether due to fraud or error.
The directors of the Company are responsible for the contents of this Circular in which the
Historical Financial Information of the Target Group is included, and such information is prepared based
on accounting policies materially consistent with those of the Company.
Reporting accountants’ responsibility
Our responsibility is to express an opinion on the Historical Financial Information and to report
our opinion to you. We conducted our work in accordance with Hong Kong Standard on Investment
Circular Reporting Engagements 200 ‘‘Accountants’ Reports on Historical Financial Information in
Investment Circulars’’ issued by the Hong Kong Institute of Certified Public Accountants (‘‘HKICPA’’).
This standard requires that we comply with ethical standards and plan and perform our work to obtain
reasonable assurance about whether the Historical Financial Information is free from material
misstatement.
Our work involved performing procedures to obtain evidence about the amounts and disclosures in
the Historical Financial Information. The procedures selected depend on the reporting accountants’
judgement, including the assessment of risks of material misstatement of the Historical Financial
Information, whether due to fraud or error. In making those risk assessments, the reporting accountants
consider internal control relevant to the entity’s preparation of Historical Financial Information that
gives a true and fair view in accordance with the basis of preparation set out in Note 2 to the Historical
Financial Information in order to design procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Our work also
included evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by the director of the Target Company, as well as evaluating the overall presentation of
the Historical Financial Information.
– IIA-1 –
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Opinion
In our opinion the Historical Financial Information gives, for the purposes of the accountants’
report, a true and fair view of the financial position of Target Company and the Target Group as at 31
December 2020, 2021 and 2022 and 31 March 2023 and of the Target Group’s financial performance and
cash flows for the Track Record Period in accordance with the basis of preparation set out in Note 2 to
Review of Stub Period Comparative Financial Information
We have reviewed the stub period comparative historical financial information of the Target Group
which comprises the consolidated statement of profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the three
months ended 31 March 2022 and other explanatory information (together the ‘‘Stub Period Comparative
Historical Financial Information’’). The directors of the Target Company are responsible for the
preparation of the Stub Period Comparative Historical Financial Information in accordance with the
basis of preparation set out in Note 2 to the Historical Financial Information. Our responsibility is to
express a conclusion on the Stub Period Comparative Historical Financial Information based on our
review. We conducted our review in accordance with Hong Kong Standard on Review Engagements
2410 ‘‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity’’
issued by the HKICPA. A review consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Hong Kong Standards on
Auditing and consequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the Stub Period
Comparative Historical Financial Information, for the purposes of the accountants’ report, is not
prepared, in all material respects, in accordance with the basis of preparation set out in Note 2 to the
Historical Financial Information.
Report on matters under the Rules Governing the Listing of Securities on The Stock Exchange of
Hong Kong Limited and the Companies (Winding up and Miscellaneous Provisions) Ordinance
Adjustments
In preparing the Historical Financial Information, no adjustments to the Underlying Financial

Statements as defined on page IIA-3 have been made.
Dividends
We refer to note 15 to the Historical Financial Information which states that dividends have
declared by the Target Company in respect of the Track Record Period.
BDO Limited
Certified Public Accountants
Fong Yat Sing, Cyrus

Practising Certificate Number: P07150
Hong Kong
18 August 2023
– IIA-2 –
I. HISTORICAL FINANCIAL INFORMATION OF THE TARGET GROUP
Preparation of Historical Financial Information
Set out below is the Historical Financial Information which forms an integral part of this
accountants’ report.
The consolidated financial statements of the Target Group for the Track Record, on which the
Historical Financial Information is based, were audited by BDO Limited in accordance with Hong
Kong standards on Auditing issued by the HKICPA (‘‘Underlying Financial Statements’’).
The Historical Financial Information is presented in Renminbi (‘‘RMB’’) and all values are
rounded to the nearest thousand (RMB’000) except when otherwise indicated.
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE

INCOME
Three months ended

Year ended 31 December 31 March
2020 2021 2022 2022 2023
Notes RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
(Unaudited)
Revenue 6 2,690,796 4,006,966 4,193,094 962,711 1,060,764
Other income 7 41,967 54,160 10,972 1,529 2,979
Depreciation (1,045,605) (1,424,802) (1,629,605) (392,974) (410,696)
Staff costs 8 (140,454) (197,533) (305,930) (60,410) (59,868)
Repairs and maintenance (14) (559) (5,286) (1,692) (421)
Consumables (5,463) (4,748) (11,978) (1,098) (2,908)
Other gains and losses, net 9 119,064 36,552 12,674 (3,210) 14,338
Other operating expenses 10 (234,959) (523,382) (449,673) (83,419) (96,766)
Operating profit 11 1,425,332 1,946,654 1,814,268 421,437 507,422
Finance income 12 7,184 20,749 20,010 17,656 8,184
Finance costs 12 (661,509) (918,175) (915,862) (184,153) (197,465)
Share of results of associates — 16,984 23,743 5,061 14,350
Profit before taxation 771,007 1,066,212 942,159 260,001 332,491
Income tax expense 13 (102,728) (150,337) (171,437) (35,781) (54,379)
Profit and total comprehensive income for
the year/period 668,279 915,875 770,722 224,220 278,112
Attributable to:
Equity holders of the Target Company 489,455 826,633 567,965 189,490 221,159
Non-controlling interests 178,824 89,242 202,757 34,730 56,953
668,279 915,875 770,722 224,220 278,112
– IIA-3 –
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As at
As at 31 December 31 March
2020 2021 2022 2023
Notes RMB’000 RMB’000 RMB’000 RMB’000
ASSETS
Non-current assets
Property, plant and equipment 16 19,534,802 23,391,855 24,536,458 24,844,177
Intangible assets 17 — 150,415 140,042 137,449
Right-of-use assets 18 575,936 658,659 875,288 860,255
Prepayments for construction of power plants 1,262,808 682,204 1,044,914 1,131,574
Prepayments 25 425,681 1,321,055 112,786 114,787
Goodwill 19 18,016 18,016 18,016 18,016
Interests in associates 20 — 227,312 239,657 254,007
Financial assets measured at amortised cost 21 59,402 — — —
Deferred income tax assets 22 13,504 26,318 60,331 59,399
21,890,149 26,475,834 27,027,492 27,419,664
Current assets
Inventories 23 52,291 23,370 20,555 20,445
Bills and accounts receivable 24 3,318,750 4,928,515 5,882,971 6,044,410
Prepayments, deposits and other receivables 25 1,263,126 1,210,815 864,981 883,383
Amounts due from related parties 35 1,095,817 2,015,907 1,480,055 1,506,806
Restricted deposits 26 — — 1,513 1,513
Cash and cash equivalents 27 2,111,288 783,024 2,494,889 2,956,400
7,841,272 8,961,631 10,744,964 11,412,957
Total assets 29,731,421 35,437,465 37,772,456 38,832,621
EQUITY
Equity attributable to equity holders of
the Target Company
Registered capital 28 6,116,057 6,116,057 6,116,057 6,116,057
Reserves 28 2,457,981 3,127,071 3,204,810 3,425,969
8,574,038 9,243,128 9,320,867 9,542,026
Non-controlling interests 39 2,732,905 1,840,018 3,781,293 3,818,163
Total equity 11,306,943 11,083,146 13,102,160 13,360,189
– IIA-4 –
As at
2020 2021 2022 2023
LIABILITIES
Non-current liabilities
Deferred income 24 21 18 17
Bank borrowings 29 8,006,483 10,139,685 11,598,776 12,220,209
Borrowing from related parties 30 2,116,611 2,370,508 1,873,740 1,964,161
Other borrowings 31 2,123,607 1,168,742 696,848 631,932
Lease liabilities 32 315,451 299,823 376,974 382,664
Deferred income tax liabilities 22 1,278 2,145 2,262 2,609
12,563,454 13,980,924 14,548,618 15,201,592
Current liabilities
Bills and accounts payable 33 51,965 46,695 27,244 30,034
Construction cost payables 1,380,588 1,470,610 1,439,649 1,342,369
Other payables and accruals 34 869,749 1,082,963 1,063,122 1,065,883
Amounts due to related parties 35 575,722 804,706 2,047,566 1,947,066
Bank borrowings 29 1,750,744 5,300,695 4,854,220 5,227,282
Borrowing from related parties 30 753,598 425,526 195,890 206,394
Other borrowings 31 415,144 1,159,659 387,233 346,533
Tax payable 47,292 51,752 56,063 73,723
5,861,024 10,373,395 10,121,678 10,270,840
Total liabilities 18,424,478 24,354,319 24,670,296 25,472,432
Total equity and liabilities 29,731,421 35,437,465 37,772,456 38,832,621
Net current assets/(liabilities) 1,980,248 (1,411,764) 623,286 1,142,117
Total assets less current liabilities 23,870,397 25,064,070 27,650,778 28,561,781
– IIA-5 –
STATEMENTS OF FINANCIAL POSITION OF THE TARGET COMPANY
As at
2020 2021 2022 2023
ASSETS
Non-current assets
Property, plant and equipment 4,272 4,223 3,731 3,442
Right-of-use assets 33,517 22,345 11,173 8,379
Interests in subsidiaries 4,135,333 5,581,333 6,867,432 6,961,483
4,173,122 5,607,901 6,882,336 6,973,304
Current assets
Amounts due from subsidiaries 6,950,611 8,344,303 8,811,348 8,672,566
Prepayments, deposits and other receivables 181,973 477,204 282,992 260,332
Cash and cash equivalents 501,268 121,776 28,120 60,755
7,633,852 8,943,283 9,122,460 8,993,653
Total assets 11,806,974 14,551,184 16,004,796 15,966,957
EQUITY
Registered capital 28 6,116,057 6,116,057 6,116,057 6,116,057
Capital reserve 42 1,607,232 1,607,232 1,607,232 1,607,232
(Accumulated losses)/Retained earnings 42 (118,331) 5,533 (414,921) (437,204)
Total equity 7,604,958 7,728,822 7,308,368 7,286,085
LIABILITIES
Bank borrowings 2,320,331 625,198 544,731 626,773
Lease liabilities 23,872 — — —
Borrowing from related parties 201,491 474,490 810,391 984,292
Other borrowings 488,509 560,675 579,609 443,928
Deferred income tax liabilities — 130 132 112
3,034,203 1,660,493 1,934,863 2,055,105
Current liabilities
Bills and accounts payable 6,129 4,136 3,838 3,838
Amounts due to subsidiaries 5,678 1,001,209 3,537,160 2,863,635
Other payables and accruals 24,637 33,535 8,363 50,102
Bank borrowings 1,120,214 4,099,117 3,200,000 3,698,988
Lease liabilities 11,155 23,872 12,204 9,204
1,167,813 5,161,869 6,761,565 6,625,767
Net current assets 6,466,039 3,781,414 2,360,895 2,367,886
– IIA-6 –
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Attributable to equity holders of

the Target Company
Non-
Paid-in Capital Retained controlling
capital reserve earnings Sub-total interests Total
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
At 1 January 2020 3,373,289 122,427 353,373 3,849,089 2,700,481 6,549,570
Profit and total comprehensive income
for the year — — 489,455 489,455 178,824 668,279
Capital injection (Note 28) 2,742,768 1,607,232 — 4,350,000 — 4,350,000
Transactions with non-controlling
interests (Note 39(a)) — — — — 12,956 12,956
Dividends (Note 15) — — (114,506) (114,506) — (114,506)
Dividends to non-controlling interests — — — — (159,356) (159,356)
At 31 December 2020 and
1 January 2021 6,116,057 1,729,659 728,322 8,574,038 2,732,905 11,306,943
for the year — — 826,633 826,633 89,242 915,875
Acquisitions of subsidiaries (Note 37) — — — — 151,689 151,689
Dividends (Note 15) — — (260,362) (260,362) — (260,362)
interests (Note 39(b)) — 102,819 — 102,819 (1,015,766) (912,947)
1 January 2022 6,116,057 1,832,478 1,294,593 9,243,128 1,840,018 11,083,146
for the year — — 567,965 567,965 202,757 770,722
Dividends (Note 15) — — (488,263) (488,263) — (488,263)
interests (Note 39(c)) — (1,963) — (1,963) 1,798,725 1,796,762
At 31 December 2022 6,116,057 1,830,515 1,374,295 9,320,867 3,781,293 13,102,160
At 1 January 2023 6,116,057 1,830,515 1,374,295 9,320,867 3,781,293 13,102,160
for the period — — 221,159 221,159 56,953 278,112
interests (Note 39(d)) — — — — 10,000 10,000
At 31 March 2023 6,116,057 1,830,515 1,595,454 9,542,026 3,818,163 13,360,189
At 1 January 2022 6,116,057 1,832,478 1,294,593 9,243,128 1,840,018 11,083,146
for the period — — 189,490 189,490 34,730 224,220
At 31 March 2022 (unaudited) 6,116,057 1,832,478 1,484,083 9,432,618 1,874,748 11,307,366
– IIA-7 –
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended

2020 2021 2022 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
(unaudited)
Cash flows from operating activities
Adjustments for:
Share of result of associates — (16,984) (23,743) (5,061) (14,350)
Finance cost 661,509 918,175 915,862 184,153 197,465
Interest income (7,184) (20,749) (20,010) (17,656) (8,184)
Depreciation of property, plant and equipment 1,015,431 1,378,841 1,569,827 377,276 395,663
Deprecation of right-of-use assets 30,174 45,961 59,778 15,698 15,033
Impairment of property, plant and equipment 10,338 26,780 69,096 — —
Reversal of impairment loss on bills and accounts
receivable — (8,603) — — —
Impairment loss/(reversal of impairment loss) on
prepayments, deposits and other receivables — 12,812 1,598 (2,684) —
Amortisation of intangible assets — 8,645 10,373 2,199 2,593
Loss/(gain) on disposal of property, plant and
equipment, net — 192 (2,196) — —
Gain on recognition of negative goodwill (41,329) (21,002) (20,062) (20,062) —
Operating cash flows before movements in working
capital 2,439,946 3,390,280 3,502,682 793,864 920,711
Movement in:
(Increase)/decrease in inventories (6,774) 29,651 2,815 2,006 110
Increase in bills and accounts receivable (164,717) (608,825) (366,081) (279,208) (161,439)
(Increase)/decrease in prepayments, deposits and
other receivables (1,283,611) 552,537 1,276,991 327,959 (107,063)
Increase/(decrease) in bills and accounts payable (923,321) (348,003) (25,658) 6,449 2,790
Increase/(decrease) in other payable and accruals 397,231 (363,500) (498,148) 556,897 (94,519)
Increase/(decrease) in deferred income 24 (3) (3) (1) (1)
Cash generated from operations 458,778 2,652,137 3,892,598 1,407,966 560,589
EIT paid (78,861) (172,151) (160,251) (57,283) (35,440)
Net cash generated from operating activities 379,917 2,479,986 3,732,347 1,350,683 525,149
– IIA-8 –
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Cash flows from investment activities
Purchase of property, plant and equipment (3,093,843) (3,492,886) (1,532,146) (93,365) (657,509)
Payments for right-of-use assets — (78,458) (122,883) (50,732) —
Proceeds from disposal of property, plant and
equipment 17,668 41,968 3,867 — —
Proceeds on redemption of financial assets
measured at amortised costs 151,168 59,402 — — —
Repayment from related parties 558,685 589,612 985,012 715,315 41,231
Advance to related parties (1,548,153) (1,509,702) (449,160) (371,668) (67,982)
Net cash outflow on acquisitions of subsidiaries
(Note 37) (106,743) (1,098,483) (1,153,387) (1,153,387) —
Investments in associates — (210,328) — — —
Dividend income received from associate — — 11,398 — —
Interests received 7,184 20,749 20,010 17,656 8,184
Placement in restricted deposits — — (1,513) — —
Net cash used in investing activities (4,014,034) (5,678,126) (2,238,802) (936,181) (676,076)
Cash flows from financing activities
Drawdown of bank borrowings 4,762,199 6,077,302 5,204,148 1,210,267 1,000,000
Drawdown of borrowings from related parties 599,322 587,420 2,628,529 547,610 153,464
Drawdown of other borrowings 235,100 259,816 352,244 100,641 7,000
Proceeds from disposal of equity interests in
subsidiaries without loss of control (Note 39) 12,956 1,087,053 1,796,762 — 10,000
Acquisition of non-controlling interests (Note 39) — (2,000,000) — — —
Net proceeds from capital injection (Note 28) 4,350,000 — — — —
Repayment of bank borrowings (3,920,363) (2,194,478) (5,134,219) (1,070,583) (148,951)
Repayment of borrowings from related parties (21,749) (771,535) (3,607,364) (1,024,607) (129,008)
Repayment of other borrowings (1,228,694) (975,884) (1,659,511) (873,138) (131,294)
Advance from related parties 824,053 604,282 1,751,527 783,571 756,881
Repayment to related parties (815,752) (375,298) (508,667) (244,766) (857,381)
Payments for lease liabilities (43,561) (50,388) (56,659) (12,936) (18,190)
Dividend paid (114,506) (260,362) (488,263) — —
Dividends paid to non-controlling interests (159,356) (118,052) (60,207) — (30,083)
Net cash generated from/(used in) financing
activities 4,479,649 1,869,876 218,320 (583,941) 612,438
Net increase/(decrease) in cash and cash
equivalents 845,532 (1,328,264) 1,711,865 (169,439) 461,511
Cash and cash equivalents at beginning of year/
period 1,265,756 2,111,288 783,024 783,024 2,494,889
Cash and cash equivalents at end of year/period 2,111,288 783,024 2,494,889 613,585 2,956,400
– IIA-9 –
II. NOTES TO THE HISTORICAL FINANCIAL INFORMATION

1. GENERAL INFORMATION
1.1 Corporation information
The Target Company was incorporated in the People’s Republic of China (the ‘‘PRC’’) as a limited liability company
on 16 December 2016. Its registered office is located at Room 802, Unit 3, 7th Floor, Building 18, Xizhimenwai Street,
Xicheng District, Beijing, the PRC.
The Target Group is principally engaged in generation and sale of electricity in Mainland China.
The Target Group is controlled by State Power Investment Corporation Limited (國家電力投資集團有限公司)
(‘‘SPIC’’), a wholly state-owned enterprise established in the PRC. The directors of the Target Company (the ‘‘Directors’’)
regard SPIC as the immediate and ultimate holding company of the Target Company.
1.2 Proposed acquisition
On 26 July 2023, the Company announced its proposal to acquire 55.15% equity interest of the Target Company at a
cash consideration of approximately RMB5,830,859,000 (the ‘‘Proposed Acquisition’’) pursuant to the sale and purchase
agreement entered into between the Company and shareholder of the Target Company.
2. BASIS OF PREPARATION AND PRESENTATION
(a) Statement of compliance and basis of consolidation
The Historical Financial Information set out in this report has been prepared in accordance with the accounting
policies set out in Note 4 with conform with Hong Kong Accounting Standards (‘‘HKASs’’), Hong Kong Financial
Reporting Standards and Interpretations (hereinafter collectively referred to as the ‘‘HKFRSs’’) issued by the Hong Kong
Institute of Certified Public Accountants (‘‘HKICPA’’). The Historical Financial Information also complies with the
applicable disclosure provisions of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong
Limited (the ‘‘Listing Rules’’).
The HKICPA has issued a number of new and revised HKFRSs. For the purpose of preparing this Historical
Financial Information, the Target Company has consistently applied the accounting policies which conform with all
applicable new and revised HKFRSs which are effective for the accounting period beginning on 1 January 2023 throughout
the Track Record Period, except for any new or revised standards or interpretations that are not yet effective for and have
not been early adopted by the Target Company, details of which are set out in Note 3.
The preparation of the Historical Financial Information in accordance with the accounting policies set out in Note 4
which conform with HKFRSs requires the use of certain critical accounting estimates. It also requires directors of the
Target Company to exercise its judgement in the process of applying the accounting policies. The areas involving a higher
degree of judgement or complexity, or areas where assumptions and estimates are significant to the Historical Financial
Information are disclosed in Note 5.
The Stub Period Comparative Historical Financial Information has been prepared in accordance with the same basis
of preparation adopted in respect of the Historical Financial Information.
In preparation of the Historical Financial Information, the directors of the Target Company have given due and
careful consideration to the liquidity of the Target Group in light of the Target Group’s net current liabilities of
RMB1,411,764,000 as at 31 December 2021. In the opinion of the directors of the Target Company, the Historical Financial
Information has been prepared on a going concern basis as the Target Company’s immediate and ultimate holding company,
SPIC, has agreed to provide adequate funds to enable the Target Group to meet its financial obligation as they fall due in
the foreseeable future.
The Historical Financial Information of the Target Group has been prepared solely for inclusion in the Circular of
the Company in connection with the Proposed Acquisition. For the purpose of preparation of the Historical Financial
Information of the Target Group, the assets and liabilities and operating results of Shanxi Zhongshengda Energy Investment
Co., Ltd. (山西中盛達能源投資有限公司), Mianchi Xiangfeng New Energy Co., Ltd. (澠池祥風新能源有限公司), Fuxin
Shenhua Xiehe Wind Power Co., Ltd. (阜新申華協合風力發電有限公司), China Power Investment Qingyun Photovoltaic
Power Generation (Lianyungang) Co., Ltd. (中電投青雲光伏發電（連雲港）有限公司) and Beijing Jingfeng Guowei
Integrated Energy Co., Ltd. (北京京豐國威綜合能源有限公司) (‘‘5 Entities’’) have been excluded throughout the Track
Record Period (i.e. a ‘‘carve-out’’ basis).
– IIA-10 –
Management of the Company is of the view that it is more appropriate to present the Historical Financial
Information during the Track Record Period on a ‘‘carve-out’’ basis, due to the following reasons:
. Target Group is clearly delineated from 5 Entities in terms of the nature of business and management and are
managed separately.
. There are clearly identifiable assets, liabilities, revenue and expenditures of the Target Group and of 5
Entities respectively.
. It is practicable to identify the historical financial information attributable to the Target Group’s business
given that the accounting books and records of the Target Group are maintained separately from the
accounting books and records of 5 Entities.
. 5 Entities does not form part of the businesses to be acquired by the Company under the Proposed Acquisition
and hence its historical financial information is not relevant to the trading record of the business proposed to
be acquired. The directors of the Company believe that presenting the Historical Financial Information of the
Target Group and 5 Entities, which would include the results of 5 Entities that is not the subject of the
Proposed Acquisition, would provide irrelevant and potentially misleading financial information to the users
of this Historical Financial Information. As such, presenting the historical financial information of the Target
Group on a ‘‘carve-out’’ basis would provide more direct and relevant information to the users of the financial
information.
No significant adjustments or allocations of expenses for adoption of a ‘‘carve-out’’ basis were made in the financial
information. For the purpose of the Proposed Acquisition as stated in Note 1.2, the Historical Financial Information of the
Target Group presents the consolidated financial positions, results and cash flows of the companies now comprising the
Target Group excluded the 5 Entities and as if the group structure had been in existence throughout the Track Record
Period.
(b) Basis of measurement
The Historical Financial Information has been prepared under the historical cost basis, unless otherwise stated. The
measurement bases are fully described in the accounting policies below in Note 4.
(c) Functional and presentation currency
The Historical Financial Information are presented in Renminbi (‘‘RMB’’), which is the functional currency of the
Target Company. All are rounded to the nearest thousand (‘‘RMB’000’’), except when otherwise indicated.
3. NEW AND REVISED HKFRSs THAT HAVE BEEN ISSUED BUT ARE NOT YET EFFECTIVE
At the date of this report, the following revised HKFRSs, potentially relevant to the Historical Financial Information, have
been issued, but are not yet effective and have not been early adopted by the Target Group. The Target Company’s current
intention is to apply these changes on the date they become effective.
Amendments to HKFRS 16 Lease Liability in a Sale and Leaseback1

Amendments to HKAS 7 and Supplier Finance Arrangements1
HKFRS 7
Amendments to HKFRS 10 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 2
and HKAS 28
Amendments to HKAS 1 Classification of Liabilities as Current or Non-current and the related amendments to Hong
Kong Interpretation 5 (Revised) Presentation of Financial Statements — Classification
by the Borrower of a Term Loan that Contains a Repayment on Demand Clause1
Amendments to HKAS 1 Non-current Liabilities with Covenants1
1
Effective for annual periods beginning on or after 1 January 2024
2
Effective for annual periods beginning on or after a date to be determined
The Target Group has already commenced an assessment of the impact of these revised HKFRSs. The directors of the
Target Company anticipate that the application of revised HKFRSs will have no material impact on the result and the financial
position of the Target Group.
– IIA-11 –
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
4.1 Consolidation
(a) Subsidiaries
A subsidiary is an entity (including a structured entity) over which the Target Group has control. The Target
Group controls an entity when the Target Group is exposed to, or has rights to, variable returns from its involvement
with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are
consolidated from the date on which control is transferred to the Target Group. They are deconsolidated from the
date that control ceases.
(i) Business combinations
The Target Group applies the acquisition method to account for business combinations. The
consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the
liabilities incurred to the former owners of the acquiree and the equity interests issued by the Target Group.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are
measured initially at their fair value at acquisition date, except that:
. deferred tax assets or liabilities, and assets or liabilities related to employee benefit
arrangements are recognised and measured in accordance with HKAS 12 Income Taxes and
HKAS 19 Employee Benefits respectively; and
. lease liabilities are recognised and measured at the present value of the remaining lease
payments (as defined in HKFRS 16) as if the acquired leases were new leases at the acquisition
date, except for leases for which (a) the lease term ends within 12 months of the acquisition
date; or (b) the underlying asset is of low value. Right-of-use assets are recognised and
measured at the same amount as the relevant lease liabilities, adjusted to reflect favourable or
unfavourable terms of the lease when compared with market terms.
The Target Group recognises any non-controlling interest in the acquiree on an acquisition-by-
acquisition basis. Non-controlling interests in the acquiree that are present ownership interests and entitle
their holders to a proportionate share of the relevant subsidiary’s net assets in the event of liquidation are
measured at either fair value or the present ownership interests’ proportionate share in the recognised amounts
of the acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction-by-
transaction basis. All other components of non-controlling interests are measured at their fair values at
acquisition date, unless another measurement basis is required by HKFRSs.
Acquisition-related costs are expensed as incurred.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree
and the fair value at acquisition date of any previous equity interest in the acquiree over the fair value of the
identifiable net assets acquired is recorded as goodwill. If the total of consideration transferred, non-
controlling interest recognised and previously held interest measured at fair value is less than the fair value of
the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognised directly
in the consolidated statements of profit or loss and other comprehensive income.
Intra-group transactions, balances and unrealised gains on transactions between group companies are
eliminated. Unrealised losses are also eliminated. When necessary, amounts reported by subsidiaries have
been adjusted to conform with the Target Group’s accounting policies.
Non-controlling interests in subsidiaries are presented separately from the Target Group’s equity
therein, which represent present ownership interests entitling their holders to a proportionate share of net
assets of the relevant subsidiaries upon liquidation.
(ii) Changes in ownership interests in existing subsidiaries
Transactions with non-controlling interests that do not result in loss of control are accounted for as
equity transactions. The carrying amounts of the Target Group’s interests and the non-controlling interests are
adjusted to reflect the changes in their relative interests in the subsidiaries, including re-attribution of relevant
reserves between the Target Group and the non-controlling interests according to the Target Group’s and the
non-controlling interests’ proportionate interests. Any difference between the amount by which the non-
controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly
in equity and attributed to equity holders of the Company.
– IIA-12 –
(b) Associates
Associates are entities over which the Target Group has significant influence but not control, generally
accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted
for using the equity method of accounting. Under the equity method, the investment is initially recognised at cost,
and the carrying amount is increased or decreased to recognise the investor’s share of the profit or loss and other
comprehensive income of the investee after the date of acquisition. Upon the acquisition of the ownership interest in
an associate, any difference between the cost of the associate and the Target Group’s share of the net fair value of
the associate’s identifiable assets and liabilities is accounted for as goodwill.
The Target Group’s share of post-acquisition profit or loss is recognised in the consolidated statements of
profit or loss and other comprehensive income, and its share of post-acquisition movements in other comprehensive
income is recognised in other comprehensive income with a corresponding adjustment to the carrying amount of the
investment. When the Target Group’s share of losses in an associate equals or exceeds its interest in the associate,
the Target Group does not recognise further losses, unless it has incurred legal or constructive obligations or made
payments on behalf of the associate.
The Target Group determines at each reporting date whether there is any objective evidence that the
investment in the associate is impaired. If this is the case, the Target Group calculates the amount of impairment as
the difference between the recoverable amount of the associate and its carrying value and recognised the amount in
the consolidated statements of profit or loss and other comprehensive income. Any impairment loss recognised is not
allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of
that impairment loss is recognised in accordance with HKAS 36 to the extent that the recoverable amount of the
investment subsequently increases.
Profits and losses resulting from upstream and downstream transactions between the Target Group and its
associates are recognised in the Target Group’s Historical Financial Information only to the extent of unrelated
investor’s interests in the associates. Unrealised losses are eliminated unless the transaction provides evidence of an
impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure
consistency with the policies adopted by the Target Group.
4.2 Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements of each of the Target Group’s entities are measured using the
currency of the primary economic environment in which the entity operates (the ‘‘functional currency’’). The
principal activities of the Target Group are mainly transacted in RMB and accordingly the Historical Financial
Information are presented in RMB, which is the Target Company’s functional and presentation currency.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at
the dates of the transactions or valuation where items are re-measured. Exchange gains and losses resulting from the
settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the consolidated statements of profit or loss and other
comprehensive income.
Exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the
consolidated statements of profit or loss and other comprehensive income within ‘‘finance costs’’. All other exchange
gains and losses are presented in the consolidated statements of profit or loss and other comprehensive income
within ‘‘other gains and losses, net’’.
4.3 Property, plant and equipment
Property, plant and equipment other than construction in progress are stated at cost less subsequent accumulated
depreciation and subsequent impairment losses. Cost includes any costs directly attributable to bringing the asset to the
location and condition necessary for it to be capable of operating in the manner intended by management and, for qualifying
assets, borrowing costs capitalised in accordance with the Target Group’s accounting policy. Depreciation of these assets
commences when the assets are ready for their intended use.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Target Group and the cost of the
item can be measured reliably. All other repairs and maintenance are charged to the consolidated statements of profit or loss
and other comprehensive income during the period in which they are incurred.
– IIA-13 –
Depreciation of property, plant and equipment (other than construction in progress) is calculated using the straight-
line method to allocate their costs less accumulated impairment losses over their estimated useful lives to their residual
values.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at end of each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount (Note 4.6(a)). Such impairment losses are recognised in the consolidated statements
of profit or loss and other comprehensive income.
Gains or losses on disposals are determined by comparing the net sales proceeds with the carrying amount of the
relevant assets and are recognised in the consolidated statements of profit or loss and other comprehensive income.
4.4 Intangible assets
Intangible assets acquired in a business combination are recognised separately from goodwill and are initially
recognised at their fair values at the acquisition date (which is regarded as their costs). Subsequent to initial recognition,
intangible assets acquired in a business combination with finite useful lives are reported at costs less accumulated
amortisation and any accumulated impairment losses, being their fair values at the date of the revaluation less subsequent
accumulated amortisation and any accumulated impairment losses, on the same basis as intangible assets that are acquired
separately.
Amortisation for intangible assets with finite useful lives is recognised on a straight-line basis over expected
beneficial period. The expected beneficial period and amortisation method are reviewed at the end of each reporting period,
with the effect of any changes in estimate being accounted for on a prospective basis.
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or
disposal. Gains and losses arising from derecognition of an intangible asset, measured as the difference between the net
disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the asset is derecognised.
The Target Group’s other intangible assets represent favourable tariff contracts as disclosed in Note 17.
4.5 Leases
Definition of a lease
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for
a period of time in exchange for consideration.
For contracts entered into or modified or arising from business combinations on or after the date of initial
application, the Target Group assesses whether a contract is or contains a lease based on the definition under HKFRS
16 at inception, modification date or acquisition date, as appropriate. Such contract will not be reassessed unless the
terms and conditions of the contract are subsequently changed.
The Target Group as a lessee
Allocation of consideration to components of a contract
For a contract that contains a lease component and one or more additional lease or non-lease components, the
Target Group allocates the consideration in the contract to each lease component on the basis of the relative stand-
alone price of the lease component and the aggregate stand-alone price of the non-lease components.
Non-lease components are separated from lease component on the basis of their relative stand-alone prices.
As a practical expedient, leases with similar characteristics are accounted on a portfolio basis when the Target
Group reasonably expects that the effects on the Historical Financial Information would not differ materially from
individual leases within the portfolio.
Short-term leases and leases of low-value assets
The Target Group applies the short-term lease recognition exemption to leases of equipment that have a lease
term of 12 months or less from the commencement date and do not contain a purchase option. It also applies the
recognition exemption for lease of low-value assets. Lease payments on short-term leases and leases of low-value
assets are recognised as expense on a straight-line basis or another systematic basis over the lease term.
– IIA-14 –
Right-of-use assets
The cost of right-of-use asset includes:
. the amount of the initial measurement of the lease liability;
. any lease payments made at or before the commencement date, less any lease incentives received;
. any initial direct costs incurred by the Target Group; and
. an estimate of costs to be incurred by the Target Group in dismantling and removing an underlying
asset, restoring the site on which it is located or restoring the underlying asset to the condition required
by the terms and conditions of the lease.
Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and
adjusted for any remeasurement of lease liabilities.
Right-of-use assets in which the Target Group is reasonably certain to obtain ownership of the underlying
leased assets at the end of the lease term are depreciated from commencement date to the end of the useful life.
Otherwise, right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and
the lease term.
When the Target Group obtains ownership of the underlying leased assets at the end of the lease term, upon
exercising purchase options, the carrying amount of the relevant right-of-use asset is transferred to property, plant
and equipment.
The Target Group presents right-of-use assets as a separate line item on the consolidated statements of
financial position.
Lease liabilities
At the commencement date of a lease, the Target Group recognised and measures the lease liability at the
present value of lease payments that are unpaid at that date. In calculating the present value of lease payments, the
Target Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the
lease is not readily determinable.
The lease payments include:
. fixed payments (including in-substance fixed payments) less any lease incentives receivable;
. variable lease payments that depend on an index or a rate, initially measured using the index or rate as
at the commencement date;
. amounts expected to be payable by the Target Group under residual value guarantees;
. the exercise price of a purchase option if the Target Group is reasonably certain to exercise the option;
and
. payments of penalties for terminating a lease, if the lease term reflects the Target Group exercising an
option to terminate the lease.
After the commencement date, lease liabilities are adjusted by interest accretion and lease payments.
The Target Group presents lease liabilities as a separate line item on the consolidated statements of financial
position.
4.6 Impairment of non-financial assets
(a) Non-financial assets other than goodwill
Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying
amount exceeds its recoverable amount.
The recoverable amounts of property, plant and equipment, right-of-use assets, and intangible assets and
prepayment are estimated individually. When it is not possible to estimate the recoverable amount of an asset
individually, the Target Group estimates the recoverable amount of the cash-generating unit (‘‘CGU’’) to which the
asset belongs.
– IIA-15 –
In addition, the Target Group assesses whether there is indication that corporate assets may be impaired. If
such indication exists, corporate assets are also allocated to individual CGU, when a reasonable and consistent basis
of allocation can be identified, or otherwise they are allocated to the smallest group of CGU for which a reasonable
and consistent allocation basis can be identified.
The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset (or a
CGU) for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or a CGU) is estimated to be less than its carrying amount, the carrying
amount of the asset (or a CGU) is reduced to its recoverable amount. For corporate assets or portion of corporate
assets which cannot be allocated on a reasonable and consistent basis to a CGU, the Target Group compares the
carrying amount of a group of CGUs, including the carrying amounts of the corporate assets or portion of corporate
assets allocated to that group of CGUs, with the recoverable amount of the group of CGUs. In allocating the
impairment loss, the impairment loss is allocated first to reduce the carrying amount of any goodwill (if applicable)
and then to the other assets on a pro-rata basis based on the carrying amount of each asset in the unit or the group of
CGUs. The carrying amount of an asset is not reduced below the highest of its fair value less costs of disposal (if
measurable), its value in use (if determinable) and zero. The amount of the impairment loss that would otherwise
have been allocated to the asset is allocated pro rata to the other assets of the unit or the group of CGUs. An
impairment loss is recognised immediately in profit or loss.
Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the
impairment at each reporting date.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or a CGU or a group of
CGUs) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does
not exceed the carrying amount that would have been determined had no impairment loss been recognised for the
asset (or a CGU or a group of CGUs) in prior years. A reversal of an impairment loss is recognised immediately in
profit or loss.
(b) Goodwill
Goodwill arises on the acquisition of subsidiaries, associates and joint ventures and represents the excess of
the consideration transferred over the Target Group’s interest in net fair value of the net identifiable assets, liabilities
and contingent liabilities of the acquiree.
For the purpose of impairment assessment, goodwill acquired in a business combination is allocated to each of
the CGUs or groups of CGUs, that is expected to benefit from the synergies of the combination. Each unit or group
of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is
monitored for internal management purposes. Goodwill is monitored at CGU level or groups of CGUs level within
the operating segment.
Goodwill impairment assessments are undertaken annually or more frequently if events or changes in
circumstances indicate a potential impairment. The carrying value of goodwill is compared to the recoverable
amount, which is the higher of value in use and the fair value less costs of disposal. Any impairment is recognised
immediately as an expense and is not subsequently reversed.
4.7 Financial assets
Classification and subsequent measurement of financial assets
Financial assets that meet the following conditions are subsequently measured at amortised cost:
. the financial assets is held within a business model whose objective is to collect contractual cash
flows; and
. the contractual term give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
Financial assets that meet the following conditions are subsequently measured at fair value through other
comprehensive income (‘‘FVTOCI’’):
. the financial asset is held within a business model whose objective is achieved by both selling and
collecting
. the contractual terms give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
– IIA-16 –
All other financial assets are subsequently measured at fair value through profit or loss (‘‘FVTPL’’), except
that at the date of initial recognition of a financial asset the Target Group may irrevocably elect to present
subsequent changes in fair value of an equity investment in other comprehensive income if that equity investment is
neither held for trading nor contingent consideration recognised by an acquirer in a business combination to which
HKFRS 3 Business Combinations applies.
A financial asset is held for trading if:
. it has been acquired principally for the purpose of selling in the near term; or
. on initial recognition it is a part of a portfolio of identified financial instruments that the Target Group
manages together and has a recent actual pattern of short-term profit-taking; or
. it is a derivative that is not designated and effective as a hedging instrument
In addition, the Target Group may irrevocably designate a financial asset that are required to be measured at
the amortised cost or FVTOCI as measured at FVTPL if doing so eliminates or significantly reduces an accounting
mismatch.
(a) Amortised cost and interest income
Interest income is recognised using the effective interest method for financial assets measured subsequently at
amortised cost. For financial instruments other than purchased or originated credit-impaired financial assets, interest
income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset, except
for financial assets that have subsequently become credit-impaired (see below). For financial assets that have
subsequently become credit-impaired, interest income is recognised by applying the effective interest rate to the
amortised cost of the financial asset from the next reporting period. If the credit risk on the credit impaired financial
instrument improves so that the financial asset is no longer credit-impaired, interest income is recognised by
applying the effective interest rate to the gross carrying amount of the financial asset from the beginning of the
reporting period following the determination that the asset is no longer credit impaired.
(b) Debt instruments classified as at FVTOCI
Subsequent changes in the carrying amounts for debt instruments classified as at FVTOCI are recognised in
other comprehensive income and accumulated under the heading of FVTOCI reserve. Impairment allowance are
recognised in profit or loss with corresponding adjustment to other comprehensive income without reducing the
carrying amounts of these debt instruments. When these debt instruments are derecognised, the cumulative gains or
losses previously recognised in other comprehensive income are reclassified to profit or loss.
(c) Equity instruments designated as at FVTOCI
Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses
arising from changes in fair value recognised in other comprehensive income and accumulated in the FVTOCI
reserve, and are not subject to impairment assessment. The cumulative gain or loss will not be reclassified to profit
or loss on disposal of the equity investments, and will be transferred to retained earnings.
Dividends from these investments in equity instruments are recognised in profit or loss when the Target
Group’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the
cost of the investment. Dividends are included in ‘‘other income’’ in the consolidated statements of profit or loss and
other comprehensive income.
Impairment of financial assets
The Target Group performs impairment assessment under expected credit loss (‘‘ECL’’) model on financial
assets (including bills and accounts receivable, financial assets measured at amortised cost, deposits and other
receivables, amounts due from related parties, restricted deposits and cash and cash equivalents) which are subject to
impairment under HKFRS 9. The amount of ECL is updated at each reporting date to reflect changes in credit risk
since initial recognition.
Lifetime ECL represents the ECL that will result from all possible default events over the expected life of the
relevant instrument. In contrast, 12-month (‘‘12m’’) ECL represents the portion of lifetime ECL that is expected to
result from default events that are possible within 12 months after the reporting date. Assessment is done based on
the Target Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general
economic conditions and an assessment of both the current conditions at the reporting date as well as the forecast of
future conditions.
– IIA-17 –
The Target Group always recognised lifetime ECL for accounts receivable other than accounts receivable with
significant financing components which is included in other non-current assets. The ECL on these assets are assessed
individually.
For accounts receivable with significant financing component and all other instruments, the Target Group
measures the loss allowance equal to 12m ECL, unless when there has been a significant increase in credit risk since
initial recognition or the financial instrument is not determined to have low credit risk at the reporting date, the
Target Group recognised lifetime ECL. The assessment of whether lifetime ECL should be recognised is based on
significant increases in the likelihood or risk of a default occurring since initial recognition.
Significant increase in credit risk
In assessing whether the credit risk has increased significantly since initial recognition, the Target Group
compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default
occurring on the financial instrument as at the date of initial recognition. In making this assessment, the Target
Group considers both quantitative and qualitative information that is reasonable and supportable, including historical
experience and forward-looking information that is available without undue cost or effort.
In particular, the following information is taken into account when assessing whether credit risk has increased
significantly:
. an actual or expected significant deterioration in the financial instruments external (if available) or
internal credit rating;
. significant deterioration in external market indicators of credit risk, e.g. a significant increase in the
credit spread, the credit default swap prices for the debtor;
. existing or forecast adverse changes in business, financial or economic conditions that are expected to
cause a significant decrease in the debtor’s ability to meet its debt obligations;
. an actual or expected significant deterioration in the operating results of the debtor; or
. an actual or expected significant adverse change in the regulatory, economic, or technological

environment of the debtor that results in a significant decrease in the debtor’s ability to meet its debt
obligations.
Irrespective of the outcome of the above assessment, the Target Group presumes that the credit risk has
increased significantly since initial recognition when contractual payments are more than 30 days past due, unless
the Target Group has reasonable and supportable information that demonstrates otherwise.
Despite the foregoing, the Target Group assumes that the credit risk on a debt instrument has not increased
significantly since initial recognition if the debt instrument is determined to have low credit risk at the reporting
date. A debt instrument is determined to have low credit risk if (i) it has a low risk of default, (ii) the borrower has a
strong capacity to meet its contractual cash flow obligations in the near term and (iii) adverse changes in economic
and business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfil
its contractual cash flow obligations. The Target Group considers a debt instrument to have low credit risk when it
has an internal or external credit rating of ‘‘investment grade’’ as per globally understood definitions.
The Target Group regularly monitors the effectiveness of the criteria used to identify whether there has been a
significant increase in credit risk and revises them as appropriate to ensure that the criteria are capable of identifying
significant increase in credit risk before the amount becomes past due.
Definition of default
For internal credit risk management, the Target Group considers an event of default occurs when information
developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors,
including the Target Group, in full (without taking into account any collaterals held by the Target Group).
Irrespective of the above, the Target Group considers that default has occurred when a financial asset is more
than 90 days past due (except for clean energy power price premium) unless the Target Group has reasonable and
supportable information to demonstrate that a more lagging default criterion is more appropriate.
Credit-impaired financial assets
A financial asset is credit-impaired when one or more events of default that have a detrimental impact on the
estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired
includes observable data about the following events:
. significant financial difficulty of the issuer or the borrower;
– IIA-18 –
. a breach of contract, such as a default or past due event;
. the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial
difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise;
. it is becoming probable that the borrower will enter bankruptcy or other financial reorganization;
. the disappearance of an active market for that financial asset because of financial difficulties; or
. the purchase or origination of a financial asset at a deep discount that reflects the incurred credit
losses.
Write-off policy
The Target Group writes off a financial asset when there is information indicating that the counterparty is in
severe financial difficulty and there is no realistic prospect of recovery, for example, when the counterparty has been
placed under liquidation or has entered into bankruptcy proceedings. Financial assets written off may still be subject
to enforcement activities under the Target Group’s recovery procedures, taking into account legal advice where
appropriate. A write-off constitutes a derecognition event. Any subsequent recoveries are recognised in profit or loss.
Measurement and recognition of ECL
The measurement of ECL is a function of the probability of default, loss given default (i.e., the magnitude of
the loss if there is a default) and the exposure at default. The assessment of the probability of default and loss given
default is based on historical data adjusted by forward-looking information. Estimation of ECL reflects an unbiased
and probability-weighted amount that is determined with the respective risks of default occurring as the weights.
Generally the ECL is the difference between all contractual cash flows that are due to the Target Group in
accordance with the contract and the cash flows that the Target Group expects to receive, discounted at the effective
interest rate determined at initial recognition.
Where ECL is measured on a collective basis or cater for cases where evidence at the individual instrument
level may not yet be available, the financial instruments are grouped on the following basis:
. Nature of financial instruments (i.e., the Target Group’s other receivables are assessed as a separate
group;
. Past-due status;
. Nature, size and industry of debtors; and
. External credit ratings where available.
The grouping is regularly reviewed by management to ensure the constituents of each group continue to share
similar credit risk characteristics.
Interest income is calculated based on the gross carrying amount of the financial asset unless the financial
asset is credit impaired, in which case interest income is calculated based on amortised cost of the financial asset.
Except for debt instruments that are measured at FVTOCI, the Target Group recognised an impairment loss or
reversal in profit or loss for all financial instruments by adjusting their carrying amount, with the exception of
accounts receivable and other receivables where the corresponding adjustment is recognised through a loss allowance
account. For debt instruments that are measured at FVTOCI, the loss allowance is recognised in other comprehensive
income and accumulated in the FVTOCI reserve without reducing the carrying amounts of these debt instruments.
Such amount represents the changes in the FVTOCI reserve in relation to accumulated loss allowance.
Derecognition of financial assets
The Target Group derecognised a financial asset only when the contractual rights to the cash flows from the
asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the
asset to another entity. If the Target Group neither transfers nor retains substantially all the risks and rewards of
ownership and continues to control the transferred asset, the Target Group recognised its retained interest in the asset
and an associated liability for amounts it may have to pay. If the Target Group retains substantially all the risks and
rewards of ownership of a transferred financial asset, the Target Group continues to recognise the financial asset and
also recognised a collateralized borrowing for the proceeds received.
On derecognition of a financial asset measured at amortized cost, the difference between the asset’s carrying
amount and the sum of the consideration received and receivable is recognised in profit or loss.
– IIA-19 –
On derecognition of an investment in a debt instrument classified as at FVTOCI, the cumulative gain or loss
previously accumulated in the FVTOCI reserve is reclassified to profit or loss.
On derecognition of an investment in equity instrument which the Target Group has elected on initial
recognition to measure at FVTOCI, the cumulative gain or loss previously accumulated in the FVTOCI reserve is not
reclassified to profit or loss, but is transferred to retained earnings.
Classification as debt or equity
Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the
substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
4.8 Financial liabilities and equity
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting
all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct
issue costs.
Financial liabilities
All financial liabilities including bank borrowings, borrowings from related parties, other borrowings,
amounts due to related parties, accounts and bills payables, construction costs payable and other payables and
accrued charge are subsequently measured at amortised cost using the effective interest method.
Financial assets and liabilities are offset and the net amount reported in the consolidated statements of
financial position when there is a legally enforceable right to offset the recognised amounts and there is an intention
to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must
not be contingent on future events and must be enforceable in the normal course of business and in the event of
default, insolvency or bankruptcy of the Target Group or the counterparty.
4.9 Provisions
Provisions are recognised when the Target Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that the Target Group will be required to settle that obligation, and a reliable estimate can be made of
the amount of the obligation.
Provisions are measured at the best estimate of the consideration required to settle the present obligation at the end
of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is
measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those
cash flows (where the effect of the time value of money is material). When some or all of the economic benefits required to
settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually
certain that reimbursement will be received and the amount of the receivable can be measured reliably.
4.10 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks and with other financial institutions
and other short-term highly liquid investments with original maturities of three months or less. Restricted deposits are
separately disclosed from cash and cash equivalents.
4.11 Inventories
Inventories comprise consumable supplies and spare parts held for consumption and usage and are stated at the lower
of cost and net realizable value after provision for obsolete items, and are expensed to fuel costs or repairs and maintenance
expense when used/consumed, or capitalised to property, plant and equipment when installed, as appropriate using weighted
average method. Cost comprises purchase price and other costs incurred in bringing the inventories to their present location
and condition and excludes borrowing costs.
4.12 Borrowings and borrowing costs
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently
carried at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is
recognised in the consolidated statements of profit or loss and other comprehensive income over the period of the
borrowings using the effective interest method.
Borrowings are classified as current liabilities unless the Target Group has an unconditional right to defer settlement
of the liability for at least 12 months after the end of each reporting period.
– IIA-20 –
General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are
added to the cost of those assets, until such time as these assets are substantially ready for their intended use or sale.
Any specific borrowing that remains outstanding after the related asset is ready for its intended use or sale is
included in the general borrowing pool for calculation of capitalization rate on general borrowings. Investment income
earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from
the borrowing costs eligible for capitalization.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
4.13 Current and deferred income tax
The tax expense for the year/period comprises current and deferred income tax. Tax is recognised in the consolidated
statements of profit or loss and other comprehensive income, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or
directly in equity, respectively.
(a) Current income tax
The current income tax is calculated on the basis of the tax laws enacted or substantively enacted at the end
of each reporting period in the places where the Target Company and its subsidiaries, associates and joint ventures
operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect
to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where
appropriate on the basis of amounts expected to be paid to the tax authorities.
In assessing any uncertainty over income tax treatments, the Target Group considers whether it is probable
that the relevant tax authority will accept the uncertain tax treatment used, or proposed to be used by individual
group entities in their income tax filings. If it is probable, the current and deferred taxes are determined consistently
with the tax treatment in the income tax filings. If it is not probable that the relevant taxation authority will accept
an uncertain tax treatment, the effect of each uncertainty is reflected by using either the most likely amount or the
expected value.
(b) Deferred income tax
Deferred income tax is recognised, using the liability method, on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the Historical Financial Information. However,
deferred income tax liabilities are not recognised if they arise from the initial recognition of goodwill, the deferred
income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than
a business combination that at the time of the transaction affects neither accounting nor taxable profits or losses.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the
end of each reporting period and are expected to apply when the related deferred income tax asset is realised or the
deferred income tax liability is settled.
Deferred income tax assets are recognised only to the extent that it is probable that future taxable profits will
be available against which the temporary differences can be utilized.
Deferred income tax liabilities are provided on taxable temporary differences arising from investments in
subsidiaries, associates and joint ventures, except for deferred income tax liability where the timing of the reversal of
the temporary difference is controlled by the Target Group and it is probable that the temporary difference will not
reverse in the foreseeable future. Generally, the Target Group is unable to control the reversal of the temporary
difference for associates. Only where there is an agreement in place that gives the Target Group the ability to control
the reversal of the temporary difference that deferred income tax liability is not recognised.
Deferred income tax assets are recognised on deductible temporary differences arising from investments in
subsidiaries, associates only to the extent that it is probable the temporary difference will reverse in the future and
there are sufficient taxable profits available against which the temporary difference can be utilized.
(c) Offsetting
Deferred income tax assets and liabilities are offset when there is a legally enforceable rights to offset current
income tax assets against current income tax liabilities and when the deferred income tax assets and liabilities relate
to income taxes levied to the same taxable entity by the same taxation authority.
– IIA-21 –
4.14 Employee benefits
(a) Pension obligations
A defined contribution plan is a pension plan under which the Target Group pays fixed contributions into a
separate entity. The Target Group has no legal or constructive obligations to pay further contributions if the fund
does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior
periods.
For employees in Mainland China, the Target Group contributes on a monthly basis to various defined
contribution plans organized by the relevant municipal and provincial governments in the PRC based on certain
percentage of the relevant employees’ monthly salaries. The municipal and provincial governments undertake to
assume the retirement benefit obligations payable to all existing and future retired employees under these plans and
the Target Group has no further constructive obligation for any post-retirement benefits beyond the contributions
made. Contributions to these plans are expensed as incurred.
All contributions to pension plans are fully and immediately vested and the Target Group had no unvested
benefits available to reduce its future contributions.
(b) Bonus entitlements
The expected cost of bonus payments is recognised as a liability when the Target Group has a present legal or
constructive obligation as a result of services rendered by employees and a reliable estimate of the obligation can be
made. Liabilities of bonus plan are expected to be settled within 12 months and are measured at the amounts
expected to be paid when they are settled.
4.15 Government grants
Grants and subsidies from the government are recognised at their fair values for monetary asset where there is a
reasonable assurance that the grant or subsidy will be received and the Target Group will comply with all attached
conditions.
Government grants and subsidies relating to costs are deferred and recognised in the consolidated statements of
profit or loss and other comprehensive income over the period necessary to match them with the costs that they are intended
to compensate.
Government grants and subsidies relating to property, plant and equipment and other environmental improvement
projects are included in non-current liabilities as deferred income and are credited to the consolidated statements of profit
or loss and other comprehensive income on a straight-line basis over the expected lives of the related assets and projects.
Non-monetary assets transferred from the government are recognised at nominal amount.
4.16 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision-makers. The chief operating decision-makers, who are responsible for allocating resources and assessing
performance of the operating segments, have been identified as the executive Directors and certain senior managements who
make strategic decisions.
4.17 Revenue from contracts with customers
Revenue is recognised to depict the transfer of promised goods or services to customers in an amount that reflects
the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, the Target
Group used a 5-step approach to revenue recognition:
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation
The Target Group recognises revenue from sales of electricity to regional and provincial power grid companies,
maintenance services and sales of equipment.
– IIA-22 –
The Target Group recognised revenue when (or as) a performance obligation is satisfied, i.e., when ‘‘control’’ of the
goods or services underlying the particular performance obligation is transferred to the customer.
A performance obligation represents a good and services (or a bundle of goods or services) that is distinct or a series
of distinct goods or services that are substantially the same.
Control is transferred over time and revenue is recognised over time by reference to the progress towards complete
satisfaction of the relevant performance obligation if one of the following criteria is met:
. the customer simultaneously receives and consumes the benefits provided by the Target Group’s performance
as the Target Group performs;
. the Target Group’s performance creates and enhances an asset that the customer controls as the Target Group
performs; or
. the Target Group’s performance does not create an asset with alternative use to the Target Group and the
Target Group has an enforceable right to payment for performance completed to date.
Otherwise, revenue is recognised at a point in time when the customer obtains control of the distinct good or service.
Existence of significant financing component
In determining the transaction price, the Target Group adjusts the promised amount of consideration for the
effects of the time value of money if the timing of payments agreed (either explicitly or implicitly) provides the
customer or the Target Group with a significant benefit of financing the transfer of goods or services to the
customer. In those circumstances, the contract contains a significant financing component. A significant financing
component may exist regardless of whether the promise of financing is explicitly stated in the contract or implied by
the payment terms agreed to by the parties to the contract.
For contracts where the period between payment and transfer of the associated goods or services is less than
one year, the Target Group applies the practical expedient of not adjusting the transaction price for any significant
financing component.
For contracts where the Target Group transferred the associated goods or services before payments from
customers in which the Target Group adjusts for the promised amount of consideration for significant financing
components, the Target Group applies a discount rate that would be reflected in a separate financing transaction
between the Target Group and the customer at contract inception. The Target Group recognised interest income
during the period between the payment from customers and the transfer of the associated goods or services.
Principal versus agent
When another party is involved in providing goods or services to a customer, the Target Group determines
whether the nature of its promise is a performance obligation to provide the specified goods or services itself (i.e.,
the Target Group is a principal) or to arrange for those goods or services to be provided by the other party (i.e., the
Target Group is an agent).
The Target Group is a principal if it controls the specified good or service before that good or service is
transferred to a customer.
The Target Group is an agent if its performance obligation is to arrange for the provision of the specified
good or service by another party. In this case, the Target Group does not control the specified good or service
provided by another party before that good or service is transferred to the customer. When the Target Group acts as
an agent, it recognised revenue in the amount of any fee or commission to which it expects to be entitled in
exchange for arranging for the specified goods or services to be provided by the other party.
Further details of revenue and income recognition policies are as follows:
Sales of electricity to regional and provincial power grid companies, and provision of power generation
Revenue is recognised upon transmission of electricity to the power grid when the control of the electricity is
transferred at the same time.
4.18 Dividend distribution
Dividend distribution to the Company’s equity holders is recognised as a liability in the period in which the
dividends are approved by the Company’s shareholders or Directors as appropriate.
– IIA-23 –
4.19 Related parties
A party is considered to be related to the Target Group if:
(a) the party is a person or a close member of that person’s family and that person:
(i) has control or joint control over the Target Group;
(ii) has a significant influence over the Target Group; or
(iii) is a member of the key management personnel of the Group or of a parent of the Target Group; or
(b) the party is an entity where any of the following conditions applies:
(i) the entity and the Target Group are members of the same group;
(ii) one entity is an associate or joint venture of the other entity (or of a parent, subsidiary or fellow
subsidiary of the other entity);
(iii) the entity and the Target Group are joint ventures of the same third party;
(iv) one entity is a joint venture of a third entity and the other entity is an associate of the third entity;
(v) the entity is a post-employment benefit plan for the benefit of employees of either the Target Group or
an entity related to the Target Group; (If the Target Group is itself a plan) and the sponsoring
employers of the post-employment benefit plan;
(vi) the entity is controlled or jointly controlled by a person identified in (a);
(vii) a person identified in (a)(i) has significant influence over the entity or is a member of the key
management personnel of the entity (or of a parent of the entity); and
(viii) the entity, or any member of a group of which it is a part, provides key management personnel services
to the Target Group or to the parent of the Target Group.
5. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The Target Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by
definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next twelve-month period are discussed below.
(a) Useful lives and residual values of plant and equipment and intangible assets
Useful lives of the Target Group’s plant and equipment and intangible assets with definite useful life are defined as
the period over which they are expected to be available for use by the Target Group. This estimate is based on the historical
experience of the actual useful lives of plant and equipment and intangible assets of similar nature and functions.
Management of the Target Group will increase the depreciation or amortisation charge where useful lives are less than
previously estimated lives, and it will write off or write down technically obsolete or non-strategic assets that have been
abandoned or sold. Actual economic lives may differ from estimated useful lives; and actual residual values may differ
from estimated residual values. Periodic review could result in a change in useful lives and residual values and therefore
depreciation or amortisation expense in future periods.
(b) Impairment of property, plant and equipment, right-of-use assets intangible assets and prepayment
Property, plant and equipment, right-of-use assets and intangible assets (favourable tariff) are reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. In view
of the impairment indicators, the Target Group would perform impairment assessment on these assets and determining their
recoverable amounts. The recoverable amounts of property, plant and equipment, right-of-use assets and prepayment
(prepayment for property, plant and equipment) have been determined based on higher of value in use calculations, which is
measured at the net present value of future cash flows which are estimated based upon the continued use of the asset in the
business, and fair value less costs of disposal. The recoverable amounts of intangible assets (favourable tariff) have been
determined based on the discounted cash flow of tariff difference (Note 17) during the expected beneficial period. These
calculations require the use of judgements and estimates.
Management judgement is required in the area of asset impairment and fair value assessment particularly in
assessing: (i) whether an event has occurred that may indicate that the related asset values may not be recoverable; (ii)
whether the carrying value of an asset can be supported by the recoverable amount; and (iii) the appropriate key
assumptions to be applied in preparing cash flow projections including whether these cash flow projections are discounted
– IIA-24 –
using an appropriate rate. When it is not possible to estimate the recoverable amount of an individual asset (including right-
of-use assets), the Group estimates the recoverable amount of the CGU or group of CGUs to which the asset belongs.
Changing the assumptions selected by management in assessing impairment, including the future sales volume, expected
tariff rates, fuel costs (if applicable), staff costs, the discount rates, growth rate and the beneficial period for the favourable
tariff contracts (of applicable) assumptions in the cash flow projections, could materially affect the net present value used in
the impairment assessment and as a result affect the Target Group’s financial condition and results of operations. If there is
a significant adverse change in the projected performance and resulting future cash flow projections, it may be necessary to
take an impairment charge to the consolidated statements of profit or loss and other comprehensive income.
For each of the years ended 31 December 2020, 2021, 2022 and three months ended 31 March 2023, the impairment
of property, plant and equipment was RMB10,338,000, RMB26,780,000, RMB69,096,000 and RMBNil respectively. No
impairment of right-of-use assets and intangible assets were provided.
(c) Income taxes
The Target Group is mainly subject to income taxes in the PRC. The Target Group carefully evaluates tax
implications of transactions in accordance with prevailing tax regulations and makes tax provision accordingly. However,
judgement is required in determining the Target Group’s provision for income taxes as there are many transactions and
calculations of which the ultimate tax determination is uncertain during the ordinary course of business. Where the final tax
outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income
tax and deferred tax provisions in the period in which such determination is made.
(d) Allowance for ECLs on bills and accounts receivables and other receivables and deposits
The impairment provisions for bills and accounts receivables, other receivables and deposits are based on
assumptions about expected credit loss. The Target Group uses judgement in making these assumptions and selecting the
inputs to the impairment calculation, based on the number of days that an individual receivable is outstanding as well as the
Target Group’s historical experience and forward-looking information at the end of the reporting period. Due to the
unprecedented nature of the COVID-19 pandemic, its effect on the Target Group’s debtors and their ability to meet their
financial obligations to the Target Group is difficult to predict. Changes in these assumptions and estimates could materially
affect the result of the assessment and it may be necessary to make additional impairment charge to the consolidated
statements of profit or loss and other comprehensive income.
As at 31 December 2020, 2021, 2022 and 31 March 2023, the Target Group had carrying amount of bills and
accounts receivable of approximately RMB3,318,750,000, RMB4,928,515,000, RMB5,882,971,000 and 6,044,410,000
respectively, loss allowance of the bills and accounts receivable as at 31 December 2020, 2021, 2022 and 31 March 2023
was insignificant.
As at 31 December 2020, 2021, 2022 and 31 March 2023, the Target Group had carrying amount of deposits and
other receivables approximately RMB46,333,000, RMB57,832,000, RMB54,661,000 and RMB51,004,000 respectively (net
of accumulated impairment losses of approximately RMB6,142,000, RMB18,954,000, RMB20,552,000 and RMB20,552,000
respectively).
(e) Acquisitions and business combinations
The directors of the Target Company determines whether the acquisitions as disclosed in note 37 should be
accounted as a business combination under HKFRS 3 or an asset acquisition by assessing if there are economic resources or
business process associated with the acquisition targets. A business is a group of assets that includes inputs, outputs and
processes that are capable of being managed together for providing a return to investors or other economic benefits. Not all
of the elements need to be present for the group of assets to be considered as a business and this determination involves
judgement. If the group of assets purchased do not constitute a business, the acquisition is considered as purchase of
individual assets. Different conclusion around this judgement may materially impact how the acquisition presented and
measured in the consolidated statements of financial position of the Target Group.
In the opinion of directors of the Target Company, the acquisitions had been accounted for as business combinations
using the acquisition method.
Under the acquisition method, the consideration transferred for the combinations is allocated to the identifiable assets
acquired and liabilities assumed based on their respective fair values as at acquisition date, including intangible assets. The
determination of the fair value of consideration transferred, assets acquired and liabilities assumed requires a set of
estimations and determination of key inputs. Any changes to these inputs may have significant impact on the fair value of
consideration transferred, assets acquired and liabilities assumed, and will consequently have further impact on the goodwill
or the profit or loss in the case of a negative gain on goodwill.
– IIA-25 –
(f) Impairment of interests in associates
In determining whether the interests in associates are impaired, the directors of the Target Group assesses the
recoverable amount of the interests in associates which is the higher of its fair value less costs of disposal and its value in
use. An impairment loss is made if the carrying amount of interests in associates exceeds its recoverable amount. In
determining the recoverable amount of the interests in associates, the directors of the Target Group require an estimation of
the future cash flows expected to arise from the associates in order to determine the value in use of the interests in
associates. When the actual future cash flows are less than expected, a material impairment loss may arise.
As at 31 December 2020, 2021, 2022 and 31 March 2023, the Target Group had carrying amount of interests in
associates was approximately Nil, RMB227,312,000, RMB239,657,000 and RMB254,007,000 respectively. No accumulated
impairment losses were recognised for the years ended 31 December 2020, 2021, 2022 and three months ended 31 March
2023.
6. REVENUE AND SEGMENT INFORMATION
Revenue recognised during the Track Record Period is as follows:
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Revenue from contracts with
customers
— Sales of electricity to regional and
provincial power grid companies
(note) 2,690,796 4,006,966 4,193,094 962,711 1,060,764
Timing of revenue recognition:
— At a point in time 2,690,796 4,006,966 4,193,094 962,711 1,060,764
Note:
Pursuant to the power purchase agreements entered into between the Target Group and the respective regional and
provincial power grid companies, the Target Group’s sales of electricity were made to these power grid companies at the
tariff rates agreed with the respective regional and provincial power grid companies as approved by the relevant government
authorities in the PRC, and some of these tariff rates followed the market-oriented price mechanism.
Segment information
The chief operating decision maker has been identified as the executive directors and certain senior management of
the target Group (collectively referred to as the ‘‘CODM’’) who make strategic decisions. The CODM reviews the internal
reporting of the Target Company and its subsidiaries in order to assess performance and allocate resources. Management
has determined the operating segments based on these reports.
The CODM assesses the performance of the operating segments based on a measure of profit/loss before taxation.
Other information provided to the CODM is measured in a manner consistent with that in the Historical Financial
Information.
Segment assets exclude financial assets measured at amortised cost, deferred income tax assets and corporate assets,
which are managed on a central basis.
– IIA-26 –
Segment liabilities exclude deferred income tax liabilities, tax payable and corporate liabilities, which are managed
on a central basis.
Year ended 31 December 2020
Photovoltaic
Wind power power Segment
electricity electricity total Unallocated Total
Segment revenue
Sales of electricity 1,518,378 1,172,418 2,690,796 — 2,690,796
Segment results 637,287 627,014 1,264,301 — 1,264,301
Unallocated income — — — 41,967 41,967
Unallocated gains — — — 119,064 119,064
Operating profit 637,287 627,014 1,264,301 161,031 1,425,332
Interest income 3,775 1,283 5,058 2,126 7,184
Finance costs (344,694) (263,662) (608,356) (53,153) (661,509)
Profit/(loss) before taxation 296,368 364,635 661,003 110,004 771,007
Income tax expense (44,437) (26,179) (70,616) (32,112) (102,728)
Profit/(loss) for the year 251,931 338,456 590,387 77,892 668,279
Other segment information
Amounts included in the measure of segment
profit or loss or segment assets:
Capital expenditure
— Property, plant and equipment, right-of-use
assets and prepayments for property,
plant and equipment 13,195,669 8,603,558 21,799,227 — 21,799,227
Depreciation of property, plant and equipment (602,718) (412,713) (1,015,431) — (1,015,431)
Depreciation of right-of-use assets (15,165) (15,009) (30,174) — (30,174)
Impairment of property, plant and equipment (7,493) (2,845) (10,338) — (10,338)
Gain on recognition of negative goodwill 41,329 — 41,329 — 41,329
At 31 December 2020
Photovoltaic
Segment assets
Other segment assets 15,438,190 12,811,718 28,249,908 — 28,249,908
Goodwill 18,016 — 18,016 — 18,016
15,456,206 12,811,718 28,267,924 — 28,267,924
Deferred income tax assets — 13,504 13,504 — 13,504
Other unallocated assets — — — 1,449,993 1,449,993
Total assets per consolidated statements of
financial position 15,456,206 12,825,222 28,281,428 1,449,993 29,731,421
Segment liabilities
Other segment liabilities (1,498,627) (1,511,585) (3,010,212) — (3,010,212)
Borrowings (6,665,387) (3,967,252) (10,632,639) (4,533,548) (15,166,187)
(8,164,014) (5,478,837) (13,642,851) (4,533,548) (18,176,399)
Deferred income tax liabilities — (1,278) (1,278) — (1,278)
Tax payable — — — (47,292) (47,292)
Other unallocated liabilities — — — (199,509) (199,509)
Total liabilities per consolidated statements
of financial position (8,164,014) (5,480,115) (13,644,129) (4,780,349) (18,424,478)
– IIA-27 –

Photovoltaic
Segment revenue
Segment results 944,409 911,533 1,855,942 — 1,855,942
Interest income 11,583 4,098 15,681 5,068 20,749
Finance costs (425,317) (418,079) (843,396) (74,779) (918,175)
Profit/(loss) before taxation 530,675 508,473 1,039,148 27,064 1,066,212
Profit/(loss) for the year 453,949 455,451 909,400 6,475 915,875
Capital expenditure
Amortization of intangible assets (8,645) — (8,645) — (8,645)
Loss on disposal of property, plant and
equipment, net 192 — 192 — 192
Impairment loss on prepayments, deposits and
other receivables (12,812) — (12,812) — (12,812)
At 31 December 2021
Photovoltaic
Segment assets
Goodwill 18,016 — 18,016 — 18,016
Interests in associates 126,202 — 126,202 101,110 227,312
18,786,884 15,569,919 34,356,803 101,110 34,457,913
Other unallocated assets — — — 953,234 953,234
Segment liabilities
Borrowings (9,038,030) (5,379,454) (14,417,484) (6,147,331) (20,564,815)
(10,917,398) (6,892,933) (17,810,331) (6,147,331) (23,957,662)
Tax payable — — — (51,752) (51,752)
– IIA-28 –

Photovoltaic
Segment revenue
Segment results 906,849 883,773 1,790,622 — 1,790,622
Interest income 11,241 4,276 15,517 4,493 20,010
Finance costs (422,576) (381,354) (803,930) (111,932) (915,862)
Profit/(loss) before taxation 495,514 519,035 1,014,549 (72,390) 942,159
Profit/(loss) for the year 422,773 435,161 857,934 (87,212) 770,722
Capital expenditure
Amortisation of intangible assets (10,373) — (10,373) — (10,373)
Gain on disposal of property, plant and
equipment, net 2,196 — 2,196 — 2,196
Impairment loss on prepayments, deposits and
other receivables (1,598) — (1,598) — (1,598)
At 31 December 2022
Photovoltaic
Segment assets
Goodwill 18,016 — 18,016 — 18,016
19,711,568 16,242,936 35,954,504 112,513 36,067,017
Segment liabilities
Borrowings (8,668,341) (5,291,678) (13,960,019) (5,646,688) (19,606,707)
(11,015,296) (7,177,406) (18,192,702) (5,646,688) (23,839,390)
Tax payable — — — (56,063) (56,063)
– IIA-29 –
Three months ended 31 March 2023

Photovoltaic
Segment revenue
Sales of electricity 603,918 456,846 1,060,764 — 1,060,764
Segment results 256,330 233,775 490,105 — 490,105
Operating profit 256,330 233,775 490,105 17,317 507,422
Interest income 4,338 1,620 5,958 2,226 8,184
Finance costs (96,202) (70,496) (166,698) (30,767) (197,465)
Profit/(loss) before taxation 164,466 169,593 334,059 (1,568) 332,491
Income tax (expense)/credit (30,761) (26,337) (57,098) 2,719 (54,379)
Profit/(loss) for the period 133,705 143,256 276,961 1,151 278,112
Capital expenditure
Depreciation of property, plant and equipment (242,394) (153,269) (395,663) — (395,663)
At 31 March 2023
Photovoltaic
Segment assets
Goodwill 18,016 — 18,016 — 18,016
20,348,454 16,403,521 36,751,975 122,170 36,874,145
Segment liabilities
Borrowings (9,521,828) (5,618,783) (15,140,611) (5,455,950) (20,596,561)
(11,769,377) (7,464,411) (19,233,788) (5,455,950) (24,689,738)
Tax payable — — — (73,723) (73,723)
– IIA-30 –

Photovoltaic
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
Segment revenue
Sales of electricity 523,584 439,127 962,711 — 962,711
Segment results 220,305 199,603 419,908 — 419,908
Interest income 9,499 3,443 12,942 4,714 17,656
Finance costs (100,211) (72,012) (172,223) (11,930) (184,153)
Profit/(loss) before taxation 129,593 133,955 263,548 (3,547) 260,001
Income tax expense (18,509) (17,103) (35,612) (169) (35,781)
Profit/(loss) for the period 111,084 116,852 227,936 (3,716) 224,220
Capital expenditure
Depreciation of property, plant and equipment (210,524) (156,248) (366,772) — (377,276)
Reversal of impairment on prepayments,
deposits and other receivables 2,684 — 2,684 — 2,684
All revenue from external customers is generated from the PRC.
As at 31 December 2020, 2021, 2022 and 31 March 2023, all of the Target Group’s assets, liabilities and capital
expenditure were located or utilised in the PRC.
For each of the years ended 31 December 2020, 2021, 2022 and three months ended 31 March 2022 and 31 March
2023, major customers who accounted for 10% or more of the Target Group’s external revenue are as follows:
Year ended 31 December Three months ended

31 March
2020 2021 2022 2022 2023
Segment RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
(unaudited)
Customer A Wind power electricity and 1,479,070 2,107,294 2,077,048 642,538 540,776
photovoltaic power electricity
Customer B Wind power electricity and # # # 109,121 #
Customer C Wind power electricity and 383,054 503,756 445,790 # 119,048
Customer D Wind power electricity and # # # # 108,337
1,862,124 2,611,050 2,522,838 751,659 768,161
# represents that the amount of revenue from that customer is less than 10% of the total revenue of that year/period.
– IIA-31 –
7. OTHER INCOME
Three months ended
2020 2021 2022 2022 2023
(unaudited)
Asset leasing income 2,155 6,155 2,155 530 —
Sales of equipment 1,548 — — — —
Other services income 37,212 45,862 7,114 — 96
Others 1,052 2,143 1,703 999 2,883
41,967 54,160 10,972 1,529 2,979
8. STAFF COSTS (INCLUDING DIRECTORS’ EMOLUMENTS)

Three months ended
2020 2021 2022 2022 2023
(unaudited)
Wages, salaries and bonuses 104,645 144,524 246,683 49,853 45,386
Staff welfare 13,189 17,226 16,690 1,551 2,556
Pension costs — defined contribution plans 22,620 35,783 42,557 9,006 11,926
140,454 197,533 305,930 60,410 59,868
9. OTHER GAINS AND LOSSES, NET

Three months ended
2020 2021 2022 2022 2023
(unaudited)
Government subsidies (Note) 20,989 59,239 60,037 11,329 14,338
(Loss)/gain on disposal of property, plant and
equipment, net — (192) 2,196 — —
Gain on recognition of negative goodwill
(Note 37) 41,329 21,002 20,062 20,062 —
Impairment loss on property, plant and
equipment (Note 16) (10,338) (26,780) (69,096) — —
Written off account payables 43,480 — — — —
Others 23,604 (16,717) (525) (34,601) —
119,064 36,552 12,674 (3,210) 14,338
Note:
Government grants mainly represented subsidies provided to the Target Group to finance its operations and there were no
unfulfilled conditions.
10. OTHER OPERATING EXPENSES

Three months ended
2020 2021 2022 2022 2023
(unaudited)
Research and development expenses 22,887 18,209 37,696 3,208 9,512
Short-term lease expenses 18,528 19,633 22,790 937 635
Reversal of impairment loss on bills and
accounts receivable (Note 24) — (8,603) — — —
Impairment loss/(reversal) on prepayments,
deposits and other receivables — 12,812 1,598 (2,684) —
Amortisation of intangible assets — 8,645 10,373 2,199 2,593
Administrative and selling related expenses 158,942 422,784 321,009 71,436 70,903
Other taxes and surcharges 34,602 49,902 56,207 8,323 13,123
234,959 523,382 449,673 83,419 96,766
– IIA-32 –
11. OPERATING PROFIT
Operating profit is stated after charging the following:
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Research and development expenses 22,887 18,209 37,696 3,208 9,512
Depreciation:
— property, plant and equipment (Note 16) 1,015,431 1,378,841 1,569,827 377,276 395,663
— right-of-use assets (Note 18) 30,174 45,961 59,778 15,698 15,033
Short-term lease expenses:
— equipment 18,528 19,633 22,790 937 635
12. FINANCE INCOME AND FINANCE COSTS
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Finance income
Interest income 7,184 20,749 20,010 17,656 8,184
Finance costs
Interest expense on
— bank borrowings 556,047 837,865 769,973 118,674 143,446
— borrowings from related parties 106,776 109,940 252,431 66,434 76,469
— other borrowings 174,910 112,917 62,947 15,553 18,678
— lease liabilities 13,387 14,557 20,394 6,212 4,745
Less: amounts capitalised to property, plant
and equipment (189,611) (157,104) (189,883) (22,720) (45,873)
661,509 918,175 915,862 184,153 197,465
Note:
The weighted average interest rate on capitalised borrowings during the year ended 31 December 2020, 2021 and 2022 and
three months ended 31 March 2023 are approximately 4.53%, 4.53%, 3.78% and 3.52% per annum respectively, to
expenditure on qualifying assets.
13. INCOME TAX EXPENSE
For Track Record Period, the provision for PRC current income tax is calculated based on the statutory tax rate of 25% on
the estimated assessable profits for the year/period except that certain subsidiaries were either exempted from PRC Enterprise
Income Tax or entitled to the preferential tax rate of 7.5%, 12.5% or 15%.
The amount of income tax recognised in the consolidated statements of profit or loss and other comprehensive income
represents:
Three months ended
2020 2021 2022 2022 2023
(unaudited)
Current income tax
Charge for the year/period 101,079 141,634 156,648 34,567 52,755
Under/(over) provision in prior years/period 1,831 12,573 5,822 (602) 345
102,910 154,207 162,470 33,965 53,100
Deferred income tax
(Credit)/charge for the year/period (Note 22) (182) (3,870) 8,967 1,816 1,279
102,728 150,337 171,437 35,781 54,379
– IIA-33 –
Income tax expense for the year/period can be reconciled to the profit before taxation as follows:
Three months ended
2020 2021 2022 2022 2023
(unaudited)
Calculated at the PRC statutory tax rate
of 25% 192,752 266,553 235,540 65,000 83,123
Effect on tax concession (71,399) (94,578) (108,042) (31,941) (23,023)
Income not subject to taxation (98,034) (122,300) (74,207) (12,654) (13,229)
Expenses not deductible for taxation purpose 142,296 159,973 96,639 5,146 4,514
Utilisation of tax losses previously not
recognised (80,326) (102,592) (29,743) (1,093) (5,552)
Tax effect of tax losses not recognised 15,608 30,708 45,428 11,925 8,201
Under/(over) provision in prior years/period 1,831 12,573 5,822 (602) 345
Income tax expense 102,728 150,337 171,437 35,781 54,379
14. DIRECTOR’S AND THE FIVE HIGHEST PAID INDIVIDUALS
(a) Directors’ emoluments
Details of directors’ remuneration during the Track Record Period are as follows:
Employer’s
Salaries and contribution to
For the year ended 31 December 2020 Fees other benefits pension plans Total
RMB’000 RMB’000 RMB’000 RMB’000
Ma Guolin — 1,152 145 1,297
Liu Juntao(1) — 149 — 149
Li Qiang(2) — 213 23 236
Wu Liancheng(3) — — — —
Wu Liyan(4) — — — —
— 1,514 168 1,682
Employer’s
RMB’000 RMB’000 RMB’000 RMB’000
Ma Guolin — 1,234 197 1,431
Liu Juntao(1) — 1,234 186 1,420
Li Qiang(2) — 837 136 973
Wu Liyan(4) — — — —
Xu Haiyan(5) — — — —
Li Qinglong(6) — — — —
Chen Bin(7) — — — —
Luo Yanhui(8) — — — —
— 3,305 519 3,824
Employer’s
RMB’000 RMB’000 RMB’000 RMB’000
Ma Guolin — 818 209 1,027
Liu Juntao(1) — 817 198 1,015
Li Qiang(2) — 725 134 859
Wu Liyan(4) — — — —
Chen Bin(7) — 726 84 810
— 3,086 625 3,711
– IIA-34 –
Employer’s
For the three months ended 31 March 2023 Fees other benefits pension plans Total
RMB’000 RMB’000 RMB’000 RMB’000
Ma Guolin — 148 55 203
Liu Juntao(1) — 160 55 215
Li Qiang(2) — — — —
Wu Liyan(4) — — — —
— 308 110 418
Employer’s
For the three months ended 31 March 2022 Fees other benefits pension plans Total
RMB’000 RMB’000 RMB’000 RMB’000
(unaudited) (unaudited) (unaudited) (unaudited)
Ma Guolin — 205 52 257
Liu Juntao(1) — 205 49 254
Li Qiang(2) — 184 42 226
Wu Liyan(4) — — — —
Chen Bin(7) — 361 44 405
— 955 187 1,142
There was no arrangement under which a director waived or agreed to waive any remuneration during the Track
Record Period.
During the Track Record Period, no remuneration was paid by the Target Company to any director as an inducement
to join or upon joining the Target company or as compensation for loss of office.
(1) Liu Juntao was appointed as a Director with effect from 25 August 2020.
(2) Li Qiang was appointed as a Director with effect from 25 August 2020.
(3) Wu Liancheng was appointed as a Director with effect from 25 August 2020.
(4) Wu Liyan was appointed as a Director with effect from 25 August 2020.
(5) Xu Haiyan was appointed as a Director with effect from 31 December 2021.
(6) Li Qinglong was appointed as a Director with effect from 31 December 2021.
(7) Chen Bin was appointed as a Director with effect from 31 December 2021 and resigned as a Director with
effect from 14 July 2022.
(8) Luo Yanhui was appointed as a Director with effect from 31 December 2021.
– IIA-35 –
(b) The five highest paid individuals
The five individuals whose emoluments were the highest in the Target Group for the Track Record Period included
1, 3, 3, 2, 4 (unaudited) directors of the Target Company whose emoluments during the year ended 31 December 2020,
2021 and 2022 and each of the three months ended 31 March 2023 and 2022 respectively are reflected in the analysis
presented above.
Emoluments payable to the remaining highest paid individuals during the Track Record Period are as follows:
Three months ended

2020 2021 2022 2022 2023
(Unaudited)
Salaries and other benefits 3,458 1,866 1,431 186 1,452
Employer’s contribution to pension
plans 335 340 359 44 133
3,793 2,206 1,790 230 1,585
Their emoluments were within the following bands:
Number of employees
Three months ended
2020 2021 2022 2022 2023
(Unaudited)
HKDNil to HKD1,000,000 1 — — 1 3
HKD1,000,001 to HKD1,500,000 3 2 2 — —
4 2 2 1 3
15. DIVIDENDS
After the approval of 2021 annual general meeting on 9 June 2022, cash dividend of RMB488,263,000 (tax included)
declared in accordance with the paid-in capital of RMB6,116,057,000.
– IIA-36 –
16. PROPERTY, PLANT AND EQUIPMENT

Furniture and
Buildings and Power Electricity fixtures, tools
leasehold generators and Transportation supply and other Construction
improvements equipment equipment equipment equipment in progress Total
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Cost
At 1 January 2020 720,888 16,959,810 25,248 3,575 47,293 2,168,858 19,925,672
Additions 51,920 673,914 5,907 367 7,784 2,543,562 3,283,454
Acquisitions of subsidiaries (Note 37) 31,098 1,266,707 10 — 134 — 1,297,949
Transfers from construction in progress 100,343 1,990,241 — — — (2,090,584) —
Disposals (3,846) (16,083) (934) (1,512) (1,176) — (23,551)
At 31 December 2020 and 1 January 2021 900,403 20,874,589 30,231 2,430 54,035 2,621,836 24,483,524
Additions 681 256,852 765 3,025 16,257 3,372,410 3,649,990
Acquisitions of subsidiaries (Note 37) 238,681 1,414,350 1,386 200 227 — 1,654,844
Transfers from construction in progress 112,757 4,413,116 284 15 1,478 (4,527,650) —
Disposals — (42,112) (1,295) (33) (147) — (43,587)
At 31 December 2021 and 1 January 2022 1,252,522 26,916,795 31,371 5,637 71,850 1,466,596 29,744,771
Additions 216,921 92,702 3,244 8,230 17,739 1,383,193 1,722,029
Acquisitions of subsidiaries (Note 37) 21,510 1,039,627 162 1,096 773 — 1,063,168
Transfers from construction in progress 25,451 761,974 — 1,392 21,375 (810,192) —
Disposals — (9,505) (626) — (2,088) — (12,219)
At 31 December 2022 and 1 January 2023 1,516,404 28,801,593 34,151 16,355 109,649 2,039,597 32,517,749
Additions — 2,997 159 1,230 570 698,426 703,382
Transfers from construction in progress — 392,711 — — 33 (392,744) —
At 31 March 2023 1,516,404 29,197,301 34,310 17,585 110,252 2,345,279 33,221,131
Accumulated depreciation and
impairment loss
At 1 January 2020 169,013 3,714,252 19,002 2,583 17,789 6,197 3,928,836
Charge for the year 40,515 966,279 2,472 286 5,879 — 1,015,431
Impairment loss recognised for the year — — — — — 10,338 10,338
Disposals (529) (1,845) (907) (1,505) (1,097) — (5,883)
At 31 December 2020 and 1 January 2021 208,999 4,678,686 20,567 1,364 22,571 16,535 4,948,722
Charge for the year 41,996 1,326,606 2,540 164 7,535 — 1,378,841
Impairment loss recognised for the year — 772 — — — 26,008 26,780
Disposals — (240) (1,088) (33) (66) — (1,427)
Charge for the year 63,826 1,489,293 2,695 2,196 11,817 — 1,569,827
Impairment loss recognised for the year 2,651 64,684 — — 5 1,756 69,096
Disposals — (9,505) (181) — (862) — (10,548)
Charge for the period 17,790 373,974 603 601 2,695 — 395,663
At 31 March 2023 335,262 7,924,270 25,136 4,292 43,695 44,299 8,376,954
Carrying amounts
At 31 March 2023 1,181,142 21,273,031 9,174 13,293 66,557 2,300,980 24,844,177
At 31 December 2022 1,198,932 21,251,297 9,618 12,664 68,649 1,995,298 24,536,458
At 31 December 2021 1,001,527 20,910,971 9,352 4,142 41,810 1,424,053 23,391,855
At 31 December 2020 691,404 16,195,903 9,664 1,066 31,464 2,605,301 19,534,802
Depreciation of property, plant and equipment (other than construction in progress) is calculated using the straight-line
method to allocate their costs less accumulated impairment losses over their estimated useful lives to their residual values, as
follows:
Buildings 30 years
Leasehold improvements Shorter of 5 years and over the lease term
Power generators and equipment 5–20 years
Transportation equipment 6 years
Electricity supply equipment 5 years
Furniture and fixtures, tools and other equipment 5 years
– IIA-37 –
As at 31 March 2023, the legal titles of certain properties of the Target Group with a net book value of RMB198,124,000
have not been transferred to the Target Group. However, the Directors are of the opinion that the risks and rewards of using these
assets have been transferred to the Target Group.
During the years ended 31 December 2020, 2021 and 2022 and the three months ended 31 March 2023, certain property,
plant and equipment of the Target Group with a net book value of RMB2,905,731,000, RMB3,117,638,000, RMB2,234,771,000
and RMB2,691,417,000 respectively were pledged as security for certain bank borrowings (Note 29(d)).
During the years ended 31 December 2020, 2021 and 2022 and the three months ended 31 March 2023, impairment loss
was recognised of RMB10,338,000, RMB26,780,000, RMB69,096,000 and RMBNil respectively.
(a) Given the potential adverse impact on the performance of the Target Group’s power plants as a result of the COVID-
19 pandemic as at 31 December 2020, 2021 and 2022, the management of the Target Group concluded there were
indication for impairment and conducted impairment assessment for under-performing power plants. These power
plants had property, plant and equipment with carrying amounts before the impairment loss recognised for that
financial year of RMB10,338,000, RMB26,780,000 and RMB69,096,000 as at 31 December 2020, 2021 and 2022
respectively. The Target Group estimates the recoverable amount of several cash-generating units (‘‘CGUs’’) of
segments to which the asset belongs when it is not possible to estimate the recoverable amount individually. Each
CGU represents the Target Group’s individual power plant.
(b) For the purpose of impairment assessment, the recoverable amount of each CGU is determined based on value in use
calculations. These calculations use pre-tax cash flow projections based on financial budgets approved by
management for the purposes of impairment assessment covering a five-year period. Annual cash flows beyond the
five-year period are expected to be similar to that of the fifth year based on the then production capacity, taking into
account of the expected remaining useful lives of the relevant underlying operating assets.
(c) Management prepared the financial budgets taking into account of the actual and prior years’ performance and
market development expectations. For certain CGUs in ‘‘Photovoltaic power electricity’’ segment, the growth rates in
electricity sold and pre-tax discount rates used for value in use calculations of 0% and 7.29%–8.04%, 0% and
6.95%–7.71%, 0% and 6.99%–7.74% and 0% and 6.97%–7.72% respectively as at 31 December 2020, 2021 and
2022. Management estimates the growth rates in electricity sold by reference to the expected demand for electricity
in the regions where the power plants are located. In addition, management estimates the discount rates using pre-tax
rate that reflects market assessments of the time value of money and the specific risks relating to the CGUs. Other
key assumptions applied in the impairment assessment include the expected tariff rates and staff costs.
(d) Management of the Target Group has performed impairment test of property, plant and equipment of related CGUs.
Based on the value in use calculation and the allocation, impairment loss of RMB10,338,000, RMB26,780,000 and
RMB69,096,000 has been recognised against the carrying amount of property, plant and equipment for the years
ended 31 December 2020, 2021 and 2022 respectively.
17. INTANGIBLE ASSETS
Operating rights
Cost RMB’000
At 1 January 2020, 31 December 2020 and 1 January 2021 —
Acquisitions of subsidiary (Note 37.24) 159,060
At 31 December 2021 and 1 January 2022, 31 December 2022, 1 January 2023 and 31 March 2023 159,060
Accumulated amortisation
At 1 January 2020, 31 December 2020 and 1 January 2021 —
Amortisation charge for the year 8,645
At 31 December 2021 and 1 January 2022 8,645
Amortisation charge for the year 10,373
Amortisation charge for the period 2,593
At 31 March 2023 21,611
Carrying amounts
At 31 March 2023 137,449
At 31 December 2022 140,042
At 31 December 2021 150,415
At 31 December 2020 —
Operating rights represent the carrying amount of the favourable tariff contracts acquired on the acquisition of clean energy
company. This intangible asset has finite useful lives and is amortised on a straight-line basis over the period of 20 years.
– IIA-38 –
The Target Group acquired the operating rights of RMB159,060,000 on acquisition of Youyu Huaguang during the year
ended 31 December 2021. Further details are disclosed in Note 37.24.
18. RIGHT-OF-USE ASSETS

Leasehold land Buildings Equipment Total
RMB’000 RMB’000 RMB’000 RMB’000
Cost
At 1 January 2020, 31 December 2020 and
1 January 2021 583,475 46,633 — 630,108
Additions 85,818 15,435 — 101,253
Acquisitions of subsidiaries (Note 37) 27,431 — — 27,431
At 31 December 2021 and 1 January 2022 696,724 62,068 — 758,792
Additions 173,664 8,237 56,908 238,809
Acquisitions of subsidiaries (Note 37) 37,598 — — 37,598
At 31 December 2022 and 1 January 2023
and 31 March 2023 907,986 70,305 56,908 1,035,199
Accumulated depreciation
At 1 January 2020 22,004 1,994 — 23,998
Depreciation charge for the year 25,039 5,135 — 30,174
Depreciation charge for the year 33,584 12,377 — 45,961
Depreciation charge for the year 38,306 15,036 6,436 59,778
At 31 December 2022 and 1 January 2023 118,933 34,542 6,436 159,911
Depreciation charge for the period 9,602 3,822 1,609 15,033
At 31 March 2023 128,535 38,364 8,045 174,944
Carrying amounts
At 31 March 2023 779,451 31,941 48,863 860,255
At 31 December 2022 789,053 35,763 50,472 875,288
At 31 December 2021 616,097 42,562 — 658,659
At 31 December 2020 536,432 39,504 — 575,936
During the years ended 31 December 2020, 2021, and 2022 and the three months ended 31 March 2023, the Target Group
leases leasehold land, land use right, buildings and equipment of power generators included in construction in progress for its
operations. Lease contracts are entered into for fixed term of 2 to 20 years. Lease terms are negotiated on an individual basis and
contain a wide range of different terms and conditions. In determining the lease term and assessing the length of the non-
cancellable period, the Target Group applies the definition of a contract and determines the period for which the contract is
enforceable.
The Target Group regularly entered into short-term leases for equipment. As at 31 December 2020, 2021, 2022 and 31
March 2023, portfolio of short-term leases was similar to the portfolio of short-term leases to which 2020, 2021, 2022 and 31
March 2023, the short-term lease expense was recognised and as disclosed in Note 11.
The amounts recognised in profit or loss as following:
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Depreciation expense on right-of-use assets 30,174 45,961 59,778 15,698 15,033
Interest expense on lease liabilities 13,387 14,557 20,394 6,212 4,745
Expense relating to short-term leases 18,528 19,633 22,790 937 635
For years ended 31 December 2020, 2021, 2022 and three months ended 31 March 2022 and 31 March 2023, the total cash
outflow for leases amounted to RMB62,089,000, RMB70,021,000, RMB79,449,000, RMB13,873,000 (unaudited) and
RMB18,825,000 respectively.
– IIA-39 –
19. GOODWILL
Total
RMB’000
Cost
At 1 January 2020, 31 December 2020, 1 January 2021, 31 December 2021, 1 January 2022, 31 December
2022, 1 January 2023 and 31 March 2023 18,016
Accumulated impairment losses
At 1 January 2020, 31 December 2020, 1 January 2021, 31 December 2021, 1 January 2022, 31 December
2022, 1 January 2023 and 31 March 2023 —
Net book value
At 31 December 2020, 31 December 2021, 31 December 2022 and 31 March 2023 18,016
Goodwill is allocated to the Target Group’s CGU identified according to operating arrangement.
Goodwill acquired in a business combination is allocated, at acquisition, to the cash generating unit that are expected to
benefit from that business combination. The carrying amount of goodwill had been allocated as follows:
At
At 31 December 31 March
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Wind power electricity segment
Yantai Runfeng New Energy Development Co., Ltd
(煙台潤豐新能源發展有限公司) 18,016 18,016 18,016 18,016
(a) For the purpose of impairment assessment, the recoverable amount of the CGU is determined based on value in use
calculations. These calculations use pre-tax cash flow projections based on financial budgets approved by
management for the purposes of impairment assessment covering a five-year period. Annual cash flows beyond the
five-year period are expected to be similar to that of the fifth year based on the then production capacity, taking into
account of the expected remaining useful lives of the relevant underlying operating assets.
(b) Management prepared the financial budgets taking into account of the actual and prior years’ performance and
market development expectations. For the CGU included in ‘‘wind power electricity’’ segment, as at the end of each
reporting period during the Track Record Period, the growth rates in electricity sold and pre-tax discount rates used
for value in use calculations are 0% and 8.4%, 0% and 8.2%, 0% and 8.1% and 0% and 8.1% respectively.
Management estimates the growth rates in electricity sold by reference to the expected demand for electricity in the
regions where the power plants are located. In addition, management estimates the discount rates using pre-tax rate
that reflects market assessments of the time value of money and the specific risks relating to the CGU. Other key
assumptions applied in the impairment assessment include the expected tariff rates and staff costs.
(c) Management of the Target Group has performed impairment test of goodwill of related CGU. Based on the value in
use calculation and the allocation, no impairment loss has been recognised against the carrying amount of goodwill
for the years ended 31 December 2020, 2021 and 2022 and the three months ended 31 March 2023.
20. INTERESTS IN ASSOCIATES
At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Cost of investment in associates — 210,328 210,328 210,328
Share of undistributed post-acquisition reserves — 16,984 29,329 43,679
— 227,312 239,657 254,007
There are no contingent liabilities relating to the Target Group’s interests in associates and these associates did not have any
material contingent liabilities as at 31 December 2021, 2022 and 31 March 2023.
Dividends from associates for the year ended 31 December 2020, 2021, 2022 and three months ended 31 March 2023
amounted to Nil, RMB11,398,000, Nil and Nil respectively.
– IIA-40 –
The followings are the details of the associates as at 31 December 2021, 2022 and 31 March 2023:
Proportion of
ownership interest
Place of — Held by
establishment Subsidiaries of the Type of legal
Name of companies and operation Paid up capital Target Company entity Principal activities
Fuxin Huashun Wind Power The PRC RMB153,000,000 49% (note) Limited liability Generation and sale
Generation Co., Ltd. (‘‘Fuxin company of electricity
Huashun’’) (阜新華順風力發
電有限公司)
Shanxi Jingtai New Energy Co., The PRC RMB271,564,000 35% (note) Limited liability Generation and sale
Ltd. (‘‘Shanxi Jingtai’’) (山 company of electricity
西京太新能源有限公司)
Note: According to the Articles of Association of Fuxin Huashun and Shanxi Jingtai, any resolution in a shareholders
meeting must be passed by 2/3 shareholders. As such, the Directors consider that the Target Company does not have
control over Fuxin Huashun and Shanxi Jingtai.
Summarised statements of financial position

Fuxin Huashun
At
2021 2022 2023
RMB’000 RMB’000 RMB’000
Non-current assets 188,411 169,933 165,307
Current assets 175,134 175,861 179,801
Non-current liabilities (60,000) — —
Current liabilities (45,992) (86,316) (76,051)
Net assets 257,553 259,478 269,057
Shanxi Jingtai
At
2021 2022 2023
RMB’000 RMB’000 RMB’000
Non-current assets 103,623 1,104,774 944,127
Current assets 450,214 290,674 322,695
Non-current liabilities — (340,773) (185,091)
Current liabilities (264,952) (733,208) (732,675)
Net assets 288,885 321,467 349,056
Summarised income statements and statements of comprehensive income

Fuxin Huashun
Three months ended
2021 2022 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
(Unaudited)
Revenue 65,173 56,485 13,642 17,189
Profit and total comprehensive income for the year/period 22,289 25,186 5,961 9,579
Dividend received from associates — 11,398 — —
Shanxi Jingtai
Three months ended
2021 2022 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
(Unaudited)
Revenue 71,728 143,456 10,184 51,938
Profit and total comprehensive income for the year/period 17,322 32,582 6,116 27,589
Dividend received from associates — — — —
– IIA-41 –
Reconciliation of summarised financial information presented above to the carrying amount of interests in associates
are as follows:
Fuxin Huashun
At
2021 2022 2023
RMB’000 RMB’000 RMB’000
Opening net assets — 257,553 259,478
Investment in an associate 235,264 — —
Profit and total comprehensive income for the year/period 22,289 25,186 9,579
Dividend paid — (23,261) —
Closing net assets 257,553 259,478 269,057
Interest in associate (at 49%) — At carrying amounts 126,202 127,144 131,837
Shanxi Jingtai
At
2021 2022 2023
RMB’000 RMB’000 RMB’000
Opening net assets — 288,885 321,467
Investment in an associate 271,564 — —
Profit and total comprehensive income for the year/period 17,322 32,582 27,589
Closing net assets 288,886 321,467 349,056
Interest in associate (at 35%) — At carrying amounts 101,110 112,513 122,170
21. FINANCIAL ASSETS MEASURED AT AMORTISED COST
At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Debt securities:
— Unlisted 59,402 — — —
These unlisted debt securities represent investments in unlisted debt issued by private entities established in the PRC. These
investments in debt instruments are not held for trading. Instead, they are held for medium to long-term strategic purposes.
During the year ended 31 December 2021, the Target Group disposed of the investments in unlisted debt, at a consideration
of RMB59,402,000, which was also the fair value as at the date of disposal as the investment no longer met the investment
objective of the Target Group after the change in short-term financing method for the Target Group’s horizontal integration.
– IIA-42 –
22. DEFERRED INCOME TAXES
Deferred income taxes are calculated in respect of temporary differences under the liability method using the tax rates
enacted or substantively enacted by the end of each financial reporting period during the Track Record Period.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current income tax
assets against current income tax liabilities and when the deferred income taxes relate to the same taxation authority. The
following amounts, determined after appropriate offsetting, are shown in the consolidated statements of financial position:
At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Deferred income tax assets 13,504 26,318 60,331 59,399
Deferred income tax liabilities (1,278) (2,145) (2,262) (2,609)
12,226 24,173 58,069 56,790
Notes:
(a) The net movements in the deferred income tax assets/(liabilities) during the year/period, without taking into
consideration the offsetting of balances within the same tax jurisdiction, are as follows:
Accelerated Right-of-use
tax assets/lease
depreciation liabilities Total
RMB’000 RMB’000 RMB’000
At 1 January 2020 12,192 (148) 12,044
Credited to profit or loss (Note 13) 173 9 182
At 31 December 2020 and 1 January 2021 12,365 (139) 12,226
Acquisition of subsidiaries (Note 37) 8,074 3 8,077
Credited to profit or loss (Note 13) 3,821 49 3,870
At 31 December 2021 and 1 January 2022 24,260 (87) 24,173
Acquisition of subsidiaries (Note 37) 42,859 4 42,863
(Charged)/credited to profit or loss (Note 13) (10,740) 1,773 (8,967)
At 31 December 2022 and 1 January 2023 56,379 1,690 58,069
Charged to profit or loss (Note 13) (1,120) (159) (1,279)
At 31 March 2023 55,259 1,531 56,790
(b) Deferred income tax assets are recognised for tax losses carried forward to the extent that the realisation of the
related tax benefit through future taxable profits is probable. As at 31 December 2020, 2021, 2022 and 31 March
2023, the Target Group had unrecognised tax losses to be carried forward against future taxable profits amounting to
RMB581,614,000, RMB630,706,000, RMB718,390,000 and RMB648,332,000 respectively, which will expire within
5 years due to the unpredictability of future profit streams for certain subsidiaries.
23. INVENTORIES
At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Equipment 8,788 — — —
Spare parts and consumables 43,503 23,370 20,555 20,445
52,291 23,370 20,555 20,445
24. BILLS AND ACCOUNTS RECEIVABLE
At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Bills receivable 68,048 79,104 20,013 11,881
Accounts receivable 3,250,702 4,849,411 5,862,958 6,032,529
3,318,750 4,928,515 5,882,971 6,044,410
– IIA-43 –
Notes:
(a) To measure the ECL of bills and accounts receivable, accounts and bills receivables have been assessed individually.
The loss allowance of the bills and accounts receivable as at 31 December 2020, 2021, 2022 and 31 March 2023 was
insignificant.
(b) The ageing analysis of the accounts receivable based on invoice date is as follows:
At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Unbilled 1,311,442 2,086,252 2,756,320 4,206,410
1 to 3 months 1,939,260 2,763,159 3,106,638 1,826,119
3,250,702 4,849,411 5,862,958 6,032,529
The estimated loss rates are estimated based on historical observed default rates over the expected life of the debtors
and are adjusted for forward looking information that is available without undue cost or effort. The grouping is
regularly reviewed by the management to ensure relevant information about specific debtor is updated.
As at 31 December 2020, 2021, 2022 and 31 March 2023, accounts receivable from regional and provincial power
grid companies include clean energy power price premium receivable of RMB1,311,442,000, RMB2,086,252,000,
RMB2,756,320,000 and RMB4,206,410,000 respectively, which is unbilled.
The clean energy power price premium, which is a component of the government-approved on-grid tariff for wind
and photovoltaic power generation, is recognised as revenue from sales of electricity in the consolidated statements
of profit or loss and other comprehensive income of the Target Group for its wind and photovoltaic power projects.
(c) As at 31 December 2020, 2021, 2022 and 31 March 2023, bills receivable were bank acceptance notes issued by
third parties and were normally with a maturity period of 360 days.
(d) As at 31 December 2020, 2021, 2022 and 31 March 2023, certain of the bank borrowings (Notes 29(d)) was secured
by the rights on certain accounts receivable. The accounts receivable pledged under these debts as at 31 December
2020, 2021, 2022 and 31 March 2023 amounted to RMB2,987,557,000, RMB4,521,269,000, RMB5,586,646,000 and
RMB5,368,324,000 respectively.
(e) The fair values of the accounts and bills receivables approximate their carrying amounts as the impact of discounting
is not significant. All accounts and bills receivables are denominated in RMB.
25. PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES
At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Current
Deposits and other receivables 52,475 76,786 75,213 71,556
Prepayments 80,066 84,427 53,517 58,450
Deductible value-added tax (‘‘VAT’’) 1,136,727 1,068,556 756,803 773,929
Provision under ECL (6,142) (18,954) (20,552) (20,552)
1,263,126 1,210,815 864,981 883,383
Non-current
Prepayments for property, plant and equipment (other than
construction of power plants) 47,027 63,810 50,565 50,565
Prepayments for acquisitions of subsidiaries 360,289 1,239,859 33,590 33,590
Other prepayments 18,365 17,386 28,631 30,632
425,681 1,321,055 112,786 114,787
1,688,807 2,531,870 977,767 998,170
26. RESTRICTED DEPOSITS
Restricted deposits are all restricted cash deposits and pledged to certain banks as security for loans and banking facilities
granted to the Target Group. As at 31 December 2022 and 31 March 2023, the restricted deposits of the Target Group are interest
bearing at 1.75% and 1.75% respectively per annum.
– IIA-44 –
27. CASH AND CASH EQUIVALENTS
At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Cash at banks and in hand 2,111,288 783,024 2,494,889 2,956,400
Denominated in:
RMB 2,111,288 783,024 2,494,889 2,956,400
The Target Group’s cash at banks as at 31 December 2020, 2021, 2022 and 31 March 2023 are interest bearing from 0.25%
to 1.15%, 0.25% to 1.15%, 0.25% to 1.15% and 0.25% to 1.15% respectively per annum.
28. SHAREHOLDERS’ EQUITY
Registered capital
2020 2021 2022 2023

RMB’000 RMB’000 RMB’000 RMB’000
At 1 January 3,373,289 6,116,057 6,116,057 6,116,057
Capital injection (Note) 2,742,768 — — —
At 31 December/31 March 6,116,057 6,116,057 6,116,057 6,116,057
Note:
On 8 December 2020, certain independent third parties made capital injection in aggregate of RMB2,742,768,000 at an
aggregate consideration of approximately RMB4,350,000,000 and resulted in approximately RMB1,607,232,000 credited to
capital reserve of the Target Company.
Reserves
Capital reserve
Capital reserve mainly represents capital injection of the Target Company in excess of nominal value of share
capital.
29. BANK BORROWINGS
Bank borrowings are analysed as follows:
At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Non-current
Long-term bank borrowings
— Secured (Note (d)) 5,893,288 7,638,907 7,823,902 8,062,324
— Unsecured 3,163,840 3,901,473 5,429,094 5,686,178
9,057,128 11,540,380 13,252,996 13,748,502
Less: Current portion of long-term bank borrowings (1,050,645) (1,400,695) (1,654,220) (1,528,293)
8,006,483 10,139,685 11,598,776 12,220,209
Current
Short-term bank borrowings
— unsecured 700,099 3,900,000 3,200,000 3,698,989
Current portion of long-term bank borrowings 1,050,645 1,400,695 1,654,220 1,528,293
1,750,744 5,300,695 4,854,220 5,227,282
9,757,227 15,440,380 16,452,996 17,447,491
Notes:
(a) The carrying amounts of the Target Group’s bank borrowings are denominated in RMB.
– IIA-45 –
(b) The repayments terms of the long-term bank borrowings are analysed as follows:
At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Within one year 1,050,645 1,400,695 1,654,220 1,528,293
Between one and two years — 360,963 20,023 1,692,071
Between two and five years 1,418,295 1,482,311 2,259,292 720,582
Over five years 6,588,188 8,296,411 9,319,461 9,807,556
9,057,128 11,540,380 13,252,996 13,748,502
(c) The effective interest rate per annum of the Target Group’s bank borrowings are as follows:
At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Short-term bank borrowings 3.70% 3.65% 3.50% 3.50%
Long-term bank borrowings (including current
portion) 4.36% 4.41% 4.20% 4.20%
The bank borrowings of the Target Group in fixed and floating rates are as follows:
At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Fixed-rate borrowings 8,752,594 14,507,452 15,748,242 16,751,463
Floating-rate borrowings 1,004,633 932,928 704,754 696,028
9,757,227 15,440,380 16,452,996 17,447,491
(d) The carrying amounts of bank borrowings of the Target Group are secured as follows:
At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Secured by certain property, plant and equipment
(Note 16) 2,905,731 3,117,638 2,234,772 2,691,417
Secured by bank balance (Note 26) — — 2,484 2,583
Secured against the rights on certain accounts
receivable (Note 24) 2,987,557 4,521,269 5,586,646 5,368,324
30. BORROWINGS FROM RELATED PARTIES
Borrowings from related parties are analysed as follows:

At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Non-current
Long-term borrowings from other related parties 2,870,209 2,796,034 2,069,630 2,170,555
Less: Current portion of long-term borrowings from other
related party (753,598) (425,526) (195,890) (206,394)
2,116,611 2,370,508 1,873,740 1,964,161
Current
Current portion of long-term borrowings from other
related party 753,598 425,526 195,890 206,394
2,870,209 2,796,034 2,069,630 2,170,555
– IIA-46 –
Notes:
(a) The carrying amounts of the Target Group’s borrowings from related parties are denominated in RMB.
(b) As at 31 December 2020, 2021, 2022 and 31 March 2023, the long-term borrowings from other related parties were
unsecured, interest bearing from 3.70% to 4.99%, 3.47% to 5.88%, 3.40% to 5.50% and 3.80% to 5.50% respectively
per annum.
31. OTHER BORROWINGS

At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Non-current
Long-term other borrowings from third parties (Note (a)) 2,123,607 1,168,742 696,848 631,932
Current
Short-term other borrowings from third parties (Note (b)) 415,144 1,159,659 387,233 346,533
2,538,751 2,328,401 1,084,081 978,465
Notes:
(a) As at 31 December 2020, 2021, 2022 and 31 March 2023, the balance is unsecured, interest bearing from 3.75% to
6.11%, 3.75% to 5.40%, 3.05% to 5.88% and 2.60% to 4.90% respectively per annum. The fair values of the long-
term other borrowings from third parties approximate their carrying amounts as the impact of discounting is not
significant.
(b) As at 31 December 2020, 2021, 2022 and 31 March 2023, the balance is unsecured, interest bearing from 3.70% to
4.99%, 3.47% to 5.88%, 3.40% to 5.50% and 3.80% to 5.50% respectively per annum.
(c) As at 31 December 2020, 2021 and 2022 and 31 March 2023, certain group entities of the Target Company had
provided corporate guarantee of RMB3,500,000,000, RMB2,750,000,000, RMB1,840,000,000 and
RMB1,360,000,000 respectively to secure the other borrowings.
32. LEASE LIABILITIES

At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Lease liabilities:
Within one year 16,222 30,789 50,691 31,556
Between one and two years 20,352 22,435 29,253 42,765
Between two and five years 60,124 63,432 87,653 86,243
Over five years 234,975 213,956 260,068 253,656
331,673 330,612 427,665 414,220
Less: Amounts payable within 12 months shown under
current liabilities (16,222) (30,789) (50,691) (31,556)
315,451 299,823 376,974 382,664
Except for short-term leases and low value leases in which the Target Group applied recognition exemption, the Target
Group has recognised additions of right-of-use assets of Nil, RMB128,684,000, RMB276,407,000 and Nil and lease liabilities of
Nil, RMB34,770,000, RMB133,318,000 and Nil for the year ended 31 December 2020, 2021, 2022 and three months ended 31
March 2023 respectively, of which right-of-use assets from acquisitions of subsidiaries amounted to Nil, RMB27,431,000,
RMB37,598,000 and Nil respectively.
33. BILLS AND ACCOUNTS PAYABLE

At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Bills payable — — — 569
Accounts payable (Note a) 51,965 46,695 27,244 29,465
51,965 46,695 27,244 30,034
– IIA-47 –
Note:
(a) The normal credit period for accounts payable generally ranges from 60 to 180 days. The ageing analysis of the
accounts payable based on invoice date is as follows:
At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
1 to 6 months 12,166 11,849 3,673 7,936
7–12 months 16,810 18,874 6,589 9,346
Over 1 year 22,989 15,972 16,982 12,183
51,965 46,695 27,244 29,465
34. OTHER PAYABLES AND ACCRUALS

At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Salaries and staff welfare payable 11,663 18,103 19,582 46,587
VAT payable 26,163 56,917 119,385 122,607
Other taxes payable 12,272 14,884 20,128 18,859
Interest payable 648 4,383 — —
Repairs and maintenance expense payable 1,731 6,770 10,522 10,168
Dividends payable to non-controlling shareholders of
subsidiaries 23,356 74,207 84,157 63,709
Payable for purchase of property, plant and equipment and
materials equipment 645,515 720,492 547,201 558,700
Other payables and accrued operating expenses 148,401 187,207 262,147 245,253
869,749 1,082,963 1,063,122 1,065,883
35. AMOUNTS DUE FROM/(TO) RELATED PARTIES
At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Amounts due from related parties
Amounts due from companies controlled by SPIC 1,095,817 2,015,907 1,480,055 1,506,806
Amounts due to related parties
Amounts due to SPIC (575,722) (804,706) (2,047,566) (1,947,066)
Balances with related parties are unsecured, interest free and repayable on demand.
36. FINANCIAL INSTRUMENTS
36.1 Categories of financial instruments
At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Financial assets
Amortised cost 6,631,590 7,785,278 9,914,089 10,560,133
Amortised cost 18,044,211 23,969,789 24,184,288 24,981,863
36.2 Financial risk management objectives and policies
The Target Group’s activities expose it to a variety of financial risks: interest rate risks, credit risk and liquidity risk.
The Target Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on the Target Group’s financial performance.
– IIA-48 –
(a) Interest rate risks
The Target Group’s income and operating cash flows are substantially independent of changes in market
interest rates. The Target Group’s interest-bearing assets mainly include cash at banks and deposits at SPIC Financial
Company Limited (‘‘SPIC Financial’’), details of which have been disclosed in Notes 26 and 27 respectively. The
Target Group’s exposure to changes in interest rates is mainly attributable to its borrowings and lease liabilities,
details of which have been disclosed in Notes 29 to 32 respectively. Borrowings carried at floating rates expose the
Target Group to cash flow interest rate risk whereas borrowings and lease liability carried at fixed rates expose the
Target Group to fair value interest rate risk, details of which have been disclosed in Notes 29 to 32. The Target
Group has not used any specific interest rate swap contracts to hedge its exposure to interest rate risk.
The Target Group’s cash flow interest rate risk is mainly concentrated on the fluctuation of People’s Bank of
China (‘‘PBOC’’) interest rate arising from the Target Group’s RMB denominated floating rate bank borrowings.
As at 31 December 2020, 2021, 2022 and 31 March 2023, if the interest rates on bank borrowings had been
50 basis higher/lower than the prevailing interest rates, with all other variables held constant, post-tax profit for the
year/period (net of interest capitalised) would have been RMB3,767,000, RMB3,498,000, RMB2,643,000 and
RMB2,610,000 lower/higher respectively which mainly as a result of higher/lower interest expense on floating rate
bank borrowings and borrowings from related parties.
(b) Credit risk and impairment test
The Target Group’s credit risk primarily arises from bills and accounts receivable (Note 24), deposits and
other receivables (Note 25), financial assets measured at amortised cost (Note 21), restricted deposits (Note 26), cash
and cash equivalents (Note 27) and amount due from related parties (Note 35). The Target Group does not hold any
collateral or other credit enhancements to cover its credit risks associated with its financial assets.
Accounts receivable arising from contracts with customers (including those under other non-current assets)
The Target Group is exposed to significant concentration of credit risk in terms of electricity sales as a
majority of the Target Group’s sales of electricity were made to regional and provincial power grid
companies. The Target Group normally grants credit terms ranged from 15 to 90 days to these power grid
companies except for the clean energy power price premium. The collection of such clean energy power price
premium is subject to the allocation of funds by relevant government authorities to local grid companies,
which therefore takes a relatively long time for settlement. The Target Group only accepts bills issued or
guaranteed by reputable PRC banks if accounts receivables are settled by bills and therefore the management
of the Target Group considers the credit risk arising from the endorsed or discounted bills is insignificant.
The Target Group normally does not require collaterals from trade debtors. In addition, the Target Group
performs impairment assessment under ECL model upon application of HKFRS 9 on accounts receivable
individually. Ageing analysis of the Target Group’s accounts receivable is disclosed in Note 24 and
management does not expect any losses from non-performance by these counterparties.
Deposits and other receivables and amount due from related parties
The counterparties of the Target Group’s deposits and other receivables and amount due from related
parties are mainly large state-owned enterprises with good credit quality and subsidiaries of SPIC. Under ECL
model upon application of HKFRS 9, management makes periodic collective assessment as well as individual
assessment on the recoverability of all receivables, based on historical payment records, the length of the
overdue period, the financial strength of the debtors and whether there are any disputes with the relevant
debtors. The Target Group’s historical experience in collection of receivables falls within the recorded
allowances and the Directors are of the opinion that adequate provision for uncollectible receivables has been
made.
Restricted deposits and cash and cash equivalents
Substantially all of the Target Group’s cash and deposits are held in major financial institutions, which
management believes are of high credit quality. Therefore, the Target Group performs impairment assessment
under 12m ECL model of HKFRS 9 on restricted deposits and cash and cash equivalents on collective basis.
Management does not expect any losses from non-performance by these counterparties.
Financial assets measured at amortised cost
The Target Group’s financial assets at amortised cost are Target Group’s certain bonds which were
considered as for holding to collect contractual cash flows. The bonds which have been classified as financial
assets measured at amortised cost are issued by large state-owned enterprises with high credit quality and
therefore are considered to be low credit risk investments. Therefore, the Target Group performs impairment
assessment under 12m ECL model of HKFRS 9 on financial assets at amortised cost on individual basis.
During the Track Record Period, no ECL on financial assets at amortised cost has been recognised.
– IIA-49 –
The tables below detail the credit risk exposures of the Target Group’s financial assets, including bills
and accounts receivable, deposits and other receivables, financial assets at amortised cost, restricted deposits
and cash and cash equivalents, which are subject to ECL assessment:
External Internal 12m or lifetime
Notes credit rating credit rating ECL Gross carrying amount
At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Financial assets measured at 21 A1 Note (i) 12m ECL 59,402 — — —
amortised cost
Restricted deposits 26 A1 Note (i) 12m ECL — — 1,513 1,513
Cash and cash equivalents 27 A1 Note (i) 12m ECL 2,111,288 783,024 2,494,889 2,956,400
Deposits and other receivables 25 N/A Note (ii) Lifetime ECL (credit 52,475 76,786 75,213 71,556
impaired)
Amount due from related parties 35 N/A Note (i) 12m ECL 1,095,817 2,015,907 1,480,055 1,506,806
Bills receivable 24 A1 Note (i) 12m ECL 68,048 79,104 20,013 11,881
Accounts receivable 24 A1 Note (iii) Lifetime ECL (not 3,259,305 4,849,411 5,862,958 6,032,529
credit impaired)
Notes:
(i) Financial assets measured at amortised cost, bills receivable, amounts due from related parties,
restricted deposits and cash and cash equivalents
At the end of the reporting period, the Directors have performed impairment assessment under
12m ECL model for financial assets at amortised cost, bills receivable, amount due from related
parties, restricted deposit and cash and cash equivalents, and concluded that there has been no
significant increase in credit risk since initial recognition. Since the counterparties are in major
financial institutions and large state-owned enterprises with high credit ratings assigned by
international credit-rating agencies, the probability of defaults of the counterparties are
insignificant and accordingly, no allowance for credit losses is provided for these financial
assets.
(ii) Deposits and other receivables
For the purposes of internal credit risk management, the Target Group uses past due information
to assess whether credit risk has increased significantly since initial recognition.
The Target Group’s internal credit risk grading assessment comprises the following categories:
Internal
credit Deposits and other
rating Description receivables
A The counterparties can honor the terms of the contracts. There 12m ECL
is no reason to doubt their ability to fulfill the payment on
a timely basis.
B The counterparties frequently repay after due dates but usually 12m ECL
settle after due date.
C The counterparties cannot repay in full and there has been a Lifetime ECL (not
significant increase in credit risk since initial recognition. credit-impaired)
D There is evidence indicating the asset is credit-impaired. Lifetime ECL
(credit-impaired)
Not past
due/No fixed
repayment
Past due terms Total
RMB’000 RMB’000 RMB’000
At 31 December 2020 52,475 — 52,475
At 31 December 2021 76,786 — 76,786
At 31 December 2022 75,213 — 75,213
At 31 March 2023 71,556 — 71,556
The grouping is regularly reviewed by management to ensure relevant information about

specific debtors is updated.
– IIA-50 –
(iii) Accounts receivable
As a majority of the Target Group’s sales of electricity were made to regional and provincial
power grid companies, the Target Group has applied the simplified approach in HKFRS 9 to
measure the loss allowance at lifetime ECL individually for accounts receivable. At the end of
the reporting period, the Directors have performed impairment assessment for accounts
receivable based on external credit rating and corresponding default rate issued by international
credit-rating agencies, and concluded that the credit losses of the accounts receivable as at 31
December 2020, 2021, 2022 and 31 March 2023 were insignificant and therefore no additional
allowance is provided for accounts receivable.
(c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents and the
availability of funding through an adequate amount of credit facilities.
The Target Group’s primary cash requirements have been for construction of power plants, additions of and
upgrades on property, plant and equipment, payment on related debts and payment for purchases and operating
expenses.
The Target Group finances its working capital requirements through a combination of internal resources,
borrowings from related parties, and short-term and long-term bank and other borrowings.
Management monitors regularly the Target Group’s current and expected liquidity requirements to ensure it
maintains sufficient cash and cash equivalents and has available funding through adequate amount of facilities to
meet its working capital requirements. The Target Group will refinance and/or restructure certain short-term loans
into long-term loans or consider alternative sources of financing, where applicable.
The table below analyses the Target Group’s financial liabilities into relevant maturity groupings based on the
remaining period at the end of each financial period during the Track Record Period to the contractual maturity date.
The amounts disclosed in the table are the contractual undiscounted cash outflows by maturity and its carrying
amounts.
Total
contractual Total
Within one Between one Between two Over five undiscounted Carrying
year and two years and five years years cash flows amount
At 31 December 2020
Bills and accounts payable 51,965 — — — 51,965 51,965
Construction cost payables 1,380,588 — — — 1,380,588 1,380,588
Other payables and accruals 869,749 — — — 869,749 869,749
Amounts due to related parties 575,722 — — — 575,722 575,722
Bank borrowings 1,785,759 — 1,446,660 6,719,952 9,952,371 9,757,227
Other borrowings 421,371 1,044,512 389,753 721,196 2,576,832 2,538,751
Borrowings from related parties 759,627 864,827 320,143 948,574 2,893,171 2,870,209
5,844,781 1,909,339 2,156,556 8,389,722 18,300,398 18,044,211
Lease liabilities 16,951 21,267 62,829 245,548 346,595 331,673
Total
contractual Total
At 31 December 2021
Other payables and accruals 1,082,963 — — — 1,082,963 1,082,963
Bank borrowings 5,406,709 368,182 1,511,958 8,462,339 15,749,188 15,440,380
Other borrowings 1,177,054 144,995 521,010 520,268 2,363,327 2,328,401
Borrowings from related parties 428,930 150,649 1,122,593 1,116,230 2,818,402 2,796,034
10,417,667 663,826 3,155,561 10,098,837 24,335,891 23,969,789
– IIA-51 –
Total
contractual Total
At 31 December 2022
Amounts due to related parties 2,047,566 — — — 2,047,566 2,047,566
Bank borrowings 4,951,304 20,423 2,304,478 9,505,850 16,782,055 16,452,996
Other borrowings 393,041 177,598 266,922 262,781 1,100,342 1,084,081
Borrowings from related parties 197,457 234,287 454,533 1,199,910 2,086,187 2,069,630
10,119,383 432,308 3,025,933 10,968,541 24,546,165 24,184,288
Total
contractual Total
At 31 March 2023
Amounts due to related parties 1,947,066 — — — 1,947,066 1,947,066
Bank borrowings 5,331,828 1,725,913 734,993 10,003,707 17,796,441 17,447,491
Other borrowings 351,731 231,550 98,963 310,898 993,142 978,465
Borrowings from related parties 208,045 561,605 195,721 1,222,548 2,187,919 2,170,555
10,276,956 2,519,068 1,029,677 11,537,153 25,362,854 24,981,863
36.3 Capital risk management
The Target Group’s objectives when managing capital are to safeguard the Target Group’s ability to continue as a
going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of
capital.
The Target Group manages the capital structure and makes adjustments to it in light of changes in economic
condition. In order to maintain or adjust the capital structure, the Target Group may adjust the dividend payments to
shareholders, return capital to shareholders, issue new shares, and sell assets to reduce debt or to obtain bank and other
borrowings.
The Target Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by
total capital. Net debt is calculated as total debts (including current and non-current borrowings as well as lease liabilities
as shown in the consolidated statements of financial position) less cash and cash equivalents. Total capital is calculated as
total equity, as shown in the consolidated statements of financial position, plus net debt.
The table below analyses the Target Group’s capital structure.

At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Bank borrowings (Note 29) 9,757,227 15,440,380 16,452,996 17,447,491

Borrowing from related parties (Note 30) 2,870,209 2,796,034 2,069,630 2,170,555
Other borrowings (Note 31) 2,538,751 2,328,401 1,084,081 978,465
Lease liabilities (Note 32) 331,673 330,612 427,665 414,220
Less: Cash and cash equivalents (Note 27) (2,111,288) (783,024) (2,494,889) (2,956,400)
Net debt 13,386,572 20,112,403 17,539,483 18,054,331
Total equity 11,306,943 11,083,146 13,102,160 13,360,189
Total capital 24,693,515 31,195,549 30,641,643 31,414,520
Gearing ratio 54% 64% 57% 57%
– IIA-52 –
36.4 Fair value estimation
The directors of the Target Company consider that the carrying amounts of financial assets and financial liabilities
recorded at amortised cost in the Historical Financial Information approximate to their fair values.
37. ACQUISITIONS OF SUBSIDIARIES
37.1 Acquisition of Zhongwei Hengji Weiye Photovoltaic Power Co., Ltd (中衛恒基偉業光伏電力有限公司)
On 31 August 2020, the Target Group acquired 100% equity interests in Zhongwei Hengji Weiye Photovoltaic Power
Co., Ltd (‘‘Zhongwei Hengji’’) from independent third party in form of paying cash consideration.
Consideration transferred
2020
RMB’000
Cash paid 91,000
Assets and liabilities recognised at the date of acquisition

2020
RMB’000
Non-current assets
Property, plant and equipment 262,954
Prepayments for property, plant and equipment 21,993
Current assets
Cash and cash equivalents 67
Bills and accounts receivable 101,209
Prepayments, deposits and other receivables 13,510
Bank borrowings (88,510)
Current liabilities
Bills and accounts payable (125,408)
Other payables and accruals (62,456)
Tax payable (9,306)
Net identifiable assets acquired 114,053
The bills and accounts receivable was acquired with a fair value and gross contractual amounts of
RMB101,209,000 at the date of acquisition.
Goodwill arising on acquisition

2020
RMB’000
Consideration transferred 91,000
Add: Non-controlling interests —
Less: Net identifiable assets acquired (114,053)
Gain on recognition of negative goodwill (Note 9) (23,053)
Net cash outflows arising on acquisition

2020
RMB’000
Consideration paid in cash 91,000
Less: Cash and cash equivalents acquired (67)
90,933
Revenue and profit contribution
During the period from the acquisition date to 31 December 2020, Zhongwei Hengji had contributed a total
revenue of approximately RMB12,358,000 and net loss of approximately RMB2,306,000.
If the acquisition had occurred on 1 January 2020, the consolidated revenue and net profit of the Target Group
for the year ended 31 December 2020 would have been increased by approximately RMB44,739,000 and
approximately RMB8,814,000 respectively.
The proforma financial information was for illustrative purpose only and did not necessarily reflect the Target
Group’s revenue and operating results if the acquisition has been completed on 1 January 2020 and could not serve
as a basis for the forecast of future operation result.
– IIA-53 –
37.2 Acquisition of Weifang Huaxu Solar Photovoltaic Agriculture Co., Ltd. (濰坊華旭太陽能光伏農業有限公司)
On 31 December 2020, the Target Group acquired 100% equity interests in Weifang Huaxu Solar Photovoltaic
Agriculture Co., Ltd. (‘‘Weifang Huaxu’’) from independent third party in form of paying cash consideration.
2020
RMB’000
Cash paid 13,308

2020
RMB’000
Non-current assets
Current assets
Cash and cash equivalents 3,746
Current liabilities
2020
RMB’000
2020
RMB’000
Less: Cash and cash equivalents acquired (3,746)
9,562
During the period from the acquisition date to 31 December 2020, the Weifang Huaxu had contributed a total
revenue of approximately RMBNil and net profit of approximately RMBNil.
– IIA-54 –
37.3 Acquisition of Weifang Guanggu Agricultural Ecological Park Co., Ltd. (濰坊光穀農業生態園有限公司)
On 31 December 2020, the Target Group acquired 100% equity interests in Weifang Guanggu Agricultural
Ecological Park Co., Ltd. (‘‘Weifang Guanggu’’) from independent third party in form of paying cash consideration.
2020
RMB’000
Cash paid 8,514

2020
RMB’000
Non-current assets
Current assets
Current liabilities
2020
RMB’000
2020
RMB’000
4,847
During the period from the acquisition date to 31 December 2020, Weifang Guanggu had contributed a total
– IIA-55 –
37.4 Acquisition of Anqiu Guangneng New Energy Co., Ltd. (安丘市光能新能源有限公司)
On 31 December 2020, the Target Group acquired 100% equity interests in Anqiu Guangneng New Energy Co., Ltd.
(‘‘Anqiu Guangneng’’) from independent third party in form of paying cash consideration.
2020
RMB’000
Cash paid 178

2020
RMB’000
Non-current assets
Current assets
Current liabilities
Net identifiable assets acquired 986

2020
RMB’000
Consideration transferred 178
Less: Net identifiable assets acquired (986)
Gain on recognition of negative goodwill (Note 9) (808)
Net cash Inflows arising on acquisition
2020
RMB’000
Consideration paid in cash 178
(620)
During the period from the acquisition date to 31 December 2020, Anqiu Guangneng had contributed a total
– IIA-56 –
37.5 Acquisition of Tianneng Power Investment (Beijing) New Energy Technology Co., Ltd.
(天能電投（北京）新能源科技有限公司)
On 31 December 2020, the Target Group acquired 100% equity interests in Tianneng Power Investment (Beijing)
New Energy Technology Co., Ltd (‘‘Tianneng Power’’) from independent third party in form of paying cash consideration.
2020
RMB’000
Cash paid 1,600

2020
RMB’000
Non-current assets
Prepayments for property, plant and equipment 644
Current assets
Other borrowings (22,003)
Current liabilities
Tax payable (1,530)

2020
RMB’000

2020
RMB’000
1,588
During the period from the acquisition date to 31 December 2020, Tianneng Power had contributed a total
revenue of approximately RMB300,000 and net loss of approximately RMB109,000.
approximately RMB776,000 respectively.
– IIA-57 –
37.6 Acquisition of Wuzhong Hongsibao Qihuang New Energy Development Co., Ltd.
(吳忠市紅寺堡區杞煌新能源開發有限公司)
On 1 July 2020, the Target Group acquired 100% equity interests in Wuzhong Hongsibao Qihuang New Energy
Development Co., Ltd. (‘‘Wuzhong Hongsibao’’) from independent third party in form of paying cash consideration.
2020
RMB’000
Cash paid —
2020
RMB’000
Non-current assets
Current assets
Current liabilities
Net identifiable assets acquired —
Net cash inflows arising on acquisition
2020
RMB’000
Consideration paid in cash —
(3,036)
During the period from the acquisition date to 31 December 2020, Wuzhong Hongsibao had contributed a
total revenue of approximately RMB9,621,000 and net loss of approximately RMB1,519,000.
– IIA-58 –
37.7 Acquisition of Yongning Defu New Energy Co., Ltd. (永寧縣德伏新能源有限公司)
On 31 December 2020, the Target Group acquired 100% equity interests in Yongning Defu New Energy Co., Ltd.
(‘‘Yongning Defu’’) from independent third party in form of paying cash consideration.
2020
RMB’000
Cash paid —
2020
RMB’000
Non-current assets
Current assets
Current liabilities
Tax payable (87)
2020
RMB’000
Consideration transferred —
During the period from the acquisition date to 31 December 2020, Yongning Defu had contributed a total
– IIA-59 –
37.8 Acquisition of Yongning Deguang New Energy Co., Ltd. (永寧縣德光新能源有限公司)
On 31 December 2020, the Target Group acquired 100% equity interests in Yongning Deguang New Energy Co.,
Ltd. (‘‘Yongning Deguang’’) from independent third party in form of paying cash consideration.
2020
RMB’000
Cash paid —

2020
RMB’000
Non-current assets
Current assets
Current liabilities
Tax payable (94)
Negative goodwill arising on acquisition

2020
RMB’000
During the period from the acquisition date to 31 December 2020, Yongning Deguang had contributed a total
– IIA-60 –
37.9 Acquisition of Ningxia Yanchi Tongshang New Energy Co., Ltd. (寧夏鹽池通商新能源有限公司)
During the year ended 31 December 2020, the Target Group acquired 100% equity interests in Ningxia Yanchi
Tongshang New Energy Co., Ltd. (‘‘Ningxia Yanchi’’) from independent third party in form of paying cash consideration.
2020
RMB’000
Cash paid 4,690

2020
RMB’000
Non-current assets
Current assets
Current liabilities
Tax payable (94)
The bills and accounts receivable was acquired with a fair value and gross contractual amounts of RMB21,187,000 at
the date of acquisition.

2020
RMB’000

2020
RMB’000
3,471
During the period from the acquisition date to 31 December 2020, Ningxia Yanchi had contributed a total
– IIA-61 –
37.10 Acquisition of Ningxia Liancheng Photovoltaic Power Generation Co., Ltd. (寧夏聯成光伏發電有限公司)
On 31 December 2020, the Target Group acquired 100% equity interests in Ningxia Liancheng Photovoltaic Power
Generation Co., Ltd (‘‘Ningxia Liancheng’’) from independent third party in form of paying cash consideration.
2020
RMB’000
Cash paid —

2020
RMB’000
Non-current assets
Current assets
Current liabilities
Tax payable (14)

2020
RMB’000
(1)
During the period from the acquisition date to 31 December 2020, Ningxia Liancheng had contributed a total
– IIA-62 –
37.11 Acquisition of Yongning Derunyuan New Energy Co., Ltd. (永寧縣德潤源新能源有限公司)
On 31 December 2020, the Target Group acquired 100% equity interests in Yongning Derunyuan New Energy Co.,
Ltd. (‘‘Yongning Derunyuan’’) from independent third party in form of paying cash consideration.
2020
RMB’000
Cash paid —

2020
RMB’000
Non-current assets
Current assets
Current liabilities
Tax payable (108)

2020
RMB’000

2020
RMB’000
(1)
During the period from the acquisition date to 31 December 2020, Yongning Derunyuan had contributed a
total revenue of approximately RMBNil and net profit of approximately RMBNil.
for the year ended 31 December 2020 would have been increased by approximately RMB18,661,000 and decreased
by approximately RMB303,000 respectively.
– IIA-63 –
37.12 Acquisition of Fuxin United Wind Power Generation Co., Ltd. (阜新聯合風力發電有限公司)
On 28 February 2021, the Target Group acquired 100% equity interests in Fuxin United Wind Power Generation Co.,
Ltd. (‘‘Fuxin United’’) from independent third party in form of paying cash consideration.
2021
RMB’000
Cash paid 168,756

2021
RMB’000
Non-current assets
Current assets
Inventories 687
Current liabilities
Tax payable (1,433)

2021
RMB’000

2021
RMB’000
138,397
During the period from the acquisition date to 31 December 2021, Fuxin United had contributed a total
revenue of approximately RMB45,611,000 and net profit of approximately RMB12,528,000.
– IIA-64 –
37.13 Acquisition of Taipusiqi United Wind Power Generation Co., Ltd. (太僕寺旗聯合風力發電有限公司)
On 28 February 2021, the Target Group acquired 100% equity interests in Taipusiqi United Wind Power Generation
Co., Ltd. (‘‘Taipusiqi United’’) from independent third party in form of paying cash consideration.
2021
RMB’000
Cash paid 126,060

2021
RMB’000
Non-current assets
Current assets
Inventories 24
Current liabilities
Tax payable (1,698)

2021
RMB’000

2021
RMB’000
122,544
During the period from the acquisition date to 31 December 2021, Taipusiqi United had contributed a total
– IIA-65 –
37.14 Acquisition of Taipusiqi CENTURYCONCORD-SHE Nhua Wind Power Investment Limited

(太僕寺旗申華協合風力發電投資有限公司)
On 28 February 2021, the Target Group acquired 100% equity interests in Taipusiqi CENTURYCONCORD-SHE
Nhua Wind Power Investment Limited (‘‘CENTURYCONCORD-SHE’’) from independent third party in form of paying
cash consideration.
2021
RMB’000
Cash paid 134,604

2021
RMB’000
Non-current assets
Current assets
Inventories 19
Current liabilities
Tax payable (3,358)

2021
RMB’000

2021
RMB’000
121,924
During the period from the acquisition date to 31 December 2021, the Target Entities had contributed a total
– IIA-66 –
37.15 Acquisition of Wuyi County Wind Power Co., Ltd. (武川縣義合風力發電有限公司)
On 28 February 2021, the Target Group acquired 100% equity interests in Wuyi County Wind Power Co., Ltd.
(‘‘Wuyi County’’) from independent third party in form of paying cash consideration.
2021
RMB’000
Cash paid 94,810

2021
RMB’000
Non-current assets
Current assets
Current liabilities
Tax payable (1,132)

2021
RMB’000

2021
RMB’000
90,713
During the period from the acquisition date to 31 December 2021, Wuyi County had contributed a total
– IIA-67 –
37.16 Acquisition of Lingshou Anxiusheng New Energy Technology Co., Ltd. (靈壽縣安旭晟新能源科技有限公司)
On 30 June 2021, the Target Group acquired 100% equity interests in Lingshou Anxiusheng New Energy Technology
Co., Ltd. (‘‘Lingshou Anxiusheng’’) from independent third party in form of paying cash consideration.
2021
RMB’000
Cash paid —

2021
RMB’000
Non-current assets
Property, plant and equipment 437
Current assets
Current liabilities
Tax payable (7)

2021
RMB’000

2021
RMB’000
(389)
During the period from the acquisition date to 31 December 2021, the Target Entities had contributed a total
revenue of approximately RMB233,000 and net profit of approximately RMB116,000.
for the year ended 31 December 2021 would have been increased by approximately RMB265,000 and approximately
RMB138,000 respectively.
– IIA-68 –
37.17 Acquisition of Beijing Jiulang Photovoltaic Technology Co., Ltd. (北京九朗光伏科技有限公司)
On 31 October 2021, the Target Group acquired 100% equity interests in Beijing Jiulang Photovoltaic Technology
Co., Ltd. (‘‘Beijing Jiulang’’) from independent third party in form of paying cash consideration.
2021
RMB’000
Cash paid 16,638

2021
RMB’000
Non-current assets
Current assets
Current liabilities
Tax payable (182)

2021
RMB’000

2021
RMB’000
16,298
During the period from the acquisition date to 31 December 2021, Beijing Jiulang had contributed a total
– IIA-69 –
37.18 Acquisition of Beijing Qingying Photovoltaic Technology Co., Ltd. (北京清英光伏科技有限公司)
On 1 January 2021, the Target Group acquired 100% equity interests in Beijing Qingying Photovoltaic Technology
Co., Ltd. (‘‘Beijing Qingying’’) from independent third party in form of paying cash consideration.
2021
RMB’000
Cash paid —

2021
RMB’000
Non-current assets
Current assets
Bills and accounts receivable 345
Current liabilities
Other payables and accruals (301)
Bank borrowings (760)
RMB345,000 at the date of acquisition.

2021
RMB’000

2021
RMB’000
(10)
During the period from the acquisition date to 31 December 2021, Beijing Qingying had contributed a total
for the year ended 31 December 2021 would have been increased by approximately RMB976,000 and approximately
– IIA-70 –
37.19 Acquisition of Beijing Jingfuxinneng New Energy Technology Co., Ltd (北京京福鑫能新能源科技有限公司)
On 1 January 2021, the Target Group acquired 100% equity interests in Beijing Jingfuxinneng New Energy
Technology Co., Ltd (‘‘Beijing Jingfuxinneng’’) from independent third party in form of paying cash consideration.
2021
RMB’000
Cash paid 500

2021
RMB’000
Non-current assets
Current assets
Current liabilities
The bills and accounts receivable was acquired with a fair value and gross contractual amounts of RMB3,866,000 at
the date of acquisition.

2021
RMB’000

2021
RMB’000
325
During the period from the acquisition date to 31 December 2021, Beijing Jingfuxinneng had contributed a
total revenue of approximately RMB3,024,000 and net profit of approximately RMB680,000.
– IIA-71 –
37.20 Acquisition of Aohanqi ShuoKe Photovoltaic Power Generation Co., Ltd. (敖漢旗爍科光伏發電有限公司)
On 1 January 2021, the Target Group acquired 98.41% equity interests in Aohanqi ShuoKe Photovoltaic Power
Generation Co., Ltd. (‘‘Aohanqi ShuoKe’’) from independent third party in form of paying cash consideration.
2021
RMB’000
Cash paid 135,018

2021
RMB’000
Non-current assets
Current assets
Current liabilities
Tax payable (2,608)
Non-controlling interests
The non-controlling interests in Aohanqi ShuoKe recognised at the acquisition date were measured by
reference to the proportionate share of recognised amounts of net assets of the Aohanqi ShuoKe and amounts to
RMB2,193,000.

2021
RMB’000
Add: Non-controlling interests 2,193

2021
RMB’000
134,288
During the period from the acquisition date to 31 December 2021, Aohanqi ShuoKe had contributed a total
– IIA-72 –
37.21 Acquisition of Guodian Nailuntumotezuoqi Solar Power Co., Ltd. (國電奈倫土默特左旗光伏發電有限公司)
On 1 January 2021, the Target Group acquired 55% equity interests in Guodian Nailuntumotezuoqi Solar Power Co.,
Ltd. (‘‘Guodian Nailuntumotezuoqi’’) from independent third party in form of paying cash consideration.
2021
RMB’000
Cash paid 182,710

2021
RMB’000
Non-current assets
Deferred tax assets 8,077
Current assets
Current liabilities
Tax payable (10,277)
The non-controlling interests in Guodian Nailuntumotezuoqi recognised at the acquisition date were measured
by reference to the proportionate share of recognised amounts of net assets of the Guodian Nailuntumotezuoqi and
amounts to RMB149,496,000.

2021
RMB’000

2021
RMB’000
182,689
During the period from the acquisition date to 31 December 2021, Guodian Nailuntumotezuoqi had
contributed a total revenue of approximately RMB82,738,000 and net profit of approximately RMB25,584,000.
– IIA-73 –
37.22 Acquisition of Xinjiang Hope Chuangmei Photoelectric Engineering Co., Ltd (新疆希望創美光電工程有限公司)
On 1 January 2021, the Target Group acquired 100% equity interests in Xinjiang Hope Chuangmei Photoelectric
Engineering Co., Ltd. (‘‘Xinjiang Hope’’) from independent third party in form of paying cash consideration.
2021
RMB’000
Cash paid 42,561

2021
RMB’000
Non-current assets
Current assets
Current liabilities
Tax payable (807)

2021
RMB’000
Gain on recognition of negative goodwill (Note 9) —

2021
RMB’000
34,912
During the period from the acquisition date to 31 December 2021, Xinjiang Hope had contributed a total
– IIA-74 –
37.23 Acquisition of Hefei Yuanjing Photovoltaic Power Co., Ltd. (合肥源景光伏電力有限公司)
On 1 January 2021, the Target Group acquired 100% equity interests in Hefei Yuanjing Photovoltaic Power Co., Ltd.
(‘‘Hefei Yuanjing’’) from independent third party in form of paying cash consideration.
2021
RMB’000
Cash paid 154,000

2021
RMB’000
Non-current assets
Right-of-use assets 11,975
Current assets
Lease liabilities (11,975)
Current liabilities
Tax payable (523)

2021
RMB’000

2021
RMB’000
145,528
During the period from the acquisition date to 31 December 2021, Hefei Yuanjing had contributed a total
– IIA-75 –
37.24 Acquisition of Youyu Huaguang Power Generation Co., Ltd. (右玉縣華光發電有限責任公司)
On 28 February 2021, the Target Group acquired 100% equity interests in Youyu Huaguang Power Generation Co.,
Ltd. (‘‘Youyu Huaguang’’) from independent third party in form of paying cash consideration.
2021
RMB’000
Cash paid 96,100

2021
RMB’000
Non-current assets
Intangible assets 159,060
Current assets
Current liabilities
Tax payable (379)
The bills and accounts receivable was acquired with a fair value and gross contractual amounts of RMB227,297,000
at the date of acquisition.

2021
RMB’000

2021
RMB’000
92,280
During the period from the acquisition date to 31 December 2021, Youyu Huaguang had contributed a total
– IIA-76 –
37.25 Acquisition of Ningxia Zhongguang Energy Technology Co., Ltd. (寧夏中光能源科技有限公司)
On 1 January 2021, the Target Group acquired 100% equity interests in Ningxia Zhongguang Energy Technology
Co., Ltd. (‘‘Ningxia Zhongguang’’) from independent third party in form of paying cash consideration.
2021
RMB’000
Cash paid —

2021
RMB’000
Non-current assets
Current assets
Prepayments, deposits and other receivables 271
Current liabilities
2021
RMB’000
(123)
During the period from the acquisition date to 31 December 2021, Ningxia Zhongguang had contributed a
total revenue of approximately RMB29,866,000 and net profit of approximately RMB28,978,000.
– IIA-77 –
37.26 Acquisition of Jianghua Yao Autonomous County Kunhao Wind Power Co., Ltd.
(江華瑤族自治縣坤昊風力發電有限公司)
On 31 March 2021, the Target Group acquired 100% equity interests in Jianghua Yao Autonomous County Kunhao
Wind Power Co., Ltd. (‘‘Kunhao Wind’’) from independent third party in form of paying cash consideration.
2021
RMB’000
Cash paid 20,000

2021
RMB’000
Non-current assets
Current assets
Current liabilities

2021
RMB’000
Gain on recognition of negative goodwill (Note 9) —

2021
RMB’000
19,107
During the period from the acquisition date to 31 December 2021, Kunhao Wind had contributed a total
– IIA-78 –
37.27 Acquisition of Yuli Zhongjiancai Junxin Photovoltaic Power Generation Co., Ltd.
(尉犁縣中建材浚鑫光伏發電有限公司)
On 1 January 2022, the Target Group acquired 100% equity interests in Yuli Zhongjiancai Junxin Autonomous
County Kunhao Wind Power Co., Ltd. (‘‘Yuli Junxin’’) from independent third party in form of paying cash consideration.
2022
RMB’000
Cash paid 278,177

2022
RMB’000
Non-current assets
Current assets
Current liabilities
Bills and accounts payable (563)
Tax payable (1,322)

2022
RMB’000

2022
RMB’000
265,358
During the period from the acquisition date to 31 December 2022, Yuli Junxin had contributed a total revenue
of approximately RMB40,802,000 and net profit of approximately RMB8,835,000.
– IIA-79 –
37.28 Acquisition of Puyang Zhongjian New Energy Technology Development Co., Ltd.
(濮陽中建新能源科技發展有限公司)
On 1 January 2022, the Target Group acquired 100% equity interests in Puyang Zhongjian New Energy Technology
Development Co., Ltd. (‘‘Puyang Zhongjian’’) from independent third party in form of paying cash consideration.
2022
RMB’000
Cash paid 310,580

2022
RMB’000
Non-current assets
Current assets
Current liabilities
Tax payable (26)

2022
RMB’000

2022
RMB’000
295,636
During the period from the acquisition date to 31 December 2022, Puyang Zhongjian had contributed a total
– IIA-80 –
37.29 Acquisition of Luoning Zhongjiancai Junxin Photovoltaic Power Generation Co., Ltd.
(洛寧縣中建材浚鑫光伏發電有限公司)
On 1 January 2022, the Target Group acquired 100% equity interests in Luoning Zhongjiancai Junxin Photovoltaic
Power Generation Co., Ltd. (‘‘Luoning Zhongjiancai’’) from independent third party in form of paying cash consideration.
2022
RMB’000
Cash paid 301,450

2022
RMB’000
Non-current assets
Current assets
Current liabilities
Tax payable (255)

2022
RMB’000

2022
RMB’000
292,131
During the period from the acquisition date to 31 December 2022, Luoning Zhongjiancai had contributed a
– IIA-81 –
37.30 Acquisition of Suqian Zhongjiancai Photovoltaic Power Generation Co., Ltd. (宿遷市中建材光伏發電有限公司)
On 1 January 2022, the Target Group acquired 100% equity interests in Suqian Zhongjiancai Photovoltaic Power
Generation Co., Ltd. (‘‘Suqian Zhongjiancai’’) from independent third party in form of paying cash consideration.
2022
RMB’000
Cash paid 144,450

2022
RMB’000
Non-current assets
Current assets
Current liabilities
Bank borrowings (408)

2022
RMB’000

2022
RMB’000
133,061
During the period from the acquisition date to 31 December 2022, Suqian Zhongjiancai had contributed a total
– IIA-82 –
37.31 Acquisition of Keping Zhongjiancai Photovoltaic Power Generation Co., Ltd. (柯坪縣中建材光伏發電有限公司)
On 1 January 2022, the Target Group acquired 100% equity interests in Keping Zhongjiancai Photovoltaic Power
Generation Co., Ltd. (‘‘Keping Zhongjiancai’’) from independent third party in form of paying cash consideration.
2022
RMB’000
Cash paid 71,849

2022
RMB’000
Non-current assets
Current assets
Current liabilities
Tax payable (489)

2022
RMB’000

2022
RMB’000
70,353
During the period from the acquisition date to 31 December 2022, Keping Zhongjiancai had contributed a
– IIA-83 –
37.32 Acquisition of Yingjisha Baode Photovoltaic Power Generation Co., Ltd. (英吉沙保德光伏發電有限公司)
On 1 January 2022, the Target Group acquired 100% equity interests in Yingjisha Baode Photovoltaic Power
Generation Co., Ltd. (‘‘Yingjisha Baode’’) from independent third party in form of paying cash consideration.
2022
RMB’000
Cash paid 99,356

2022
RMB’000
Non-current assets
Current assets
Current liabilities

2022
RMB’000

2022
RMB’000
96,553
During the period from the acquisition date to 31 December 2022, Yingjisha Baode had contributed a total
– IIA-84 –
37.33 Acquisition of Puyang JunXin Agricultural Technology Co., Ltd. (濮陽浚鑫農業科技有限公司)
On 1 January 2022, the Target Group acquired 100% equity interests in Puyang JunXin Agricultural Technology Co.,
Ltd. (‘‘Puyang JunXin’’) from independent third party in form of paying cash consideration.
2022
RMB’000
Cash paid 408

2022
RMB’000
Current assets
Current liabilities

2022
RMB’000

2022
RMB’000
295
During the period from the acquisition date to 31 December 2022, Puyang JunXin had contributed a total
revenue of approximately RMBNil and net profit of approximately RMB8,000.
for the year ended 31 December 2022 would have been increased by approximately RMBNil and approximately
– IIA-85 –
38. RELATED PARTY DISCLOSURES
The Target Group is non-wholly owned subsidiary of SPIC, SPIC is controlled by the PRC government which also owns a
significant portion of the productive assets in the PRC. In accordance with HKAS 24 (Revised), government-related entities and
their subsidiaries, directly or indirectly controlled, jointly controlled or significantly influenced by the PRC government are
defined as related parties of the Target Group. On that basis, related parties include SPIC, its subsidiaries, joint ventures and
associates (other than the Target Group), other government-related entities and their subsidiaries, other entities and corporations in
which the Target Company is able to control or exercise significant influence and key management personnel of the Target
Company and SPIC as well as their close family members.
For the purpose of the related party transactions disclosures, the Directors believe that it is also meaningful to disclose the
related party transactions with SPIC companies for the interests of financial statements users. The Directors believe that the
information of related party transactions has been adequately disclosed in the Historical Financial Information.
The following is a summary of significant related party transactions which, in the opinion of the Directors, are entered into
in the ordinary course of the Target Group’s business in addition to the related party information shown elsewhere in the Historical
Financial Information.
(a) Summary of transactions
Three months ended

2020 2021 2022 2022 2023
(Unaudited)
Expenditure
Interest expenses:
— SPIC 66,670 47,166 205,513 41,325 35,092
— companies controlled by SPIC 40,106 62,774 56,918 25,109 41,377
Labour and services
Purchases of materials and facilities
Interest expenses to these related parties are charged at interest rates ranged from 2.05% to 7% (2021: ranged from
1.85% to 7%) per annum.
The key management personnel of the Target Company are the directors. Details of remuneration paid to them are
set out in Note 14 to the Historical Financial Information.
(b) Summary of balance
Balance due to related parties as follows:
At
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Amount due from related parties (Note 35) (Note a) 1,095,817 2,015,907 1,480,055 1,506,806
Borrowings from related parties (Note 30) (Note b) 2,870,209 2,796,034 2,069,630 2,170,555
Amount due to related parties (Note 35) (Note a) 575,722 804,706 2,047,566 1.947,066
Notes:
(a) Amount due from/(to) related parties are unsecured, interest free and repayable on demand.
(b) The borrowings from related parties were unsecured, interest bearing from 3.70% to 4.99%, 3.47% to 5.88%,
3.40% to 5.50% and 3.80% to 5.50% respectively per annum.
– IIA-86 –
39. PARTICULARS OF PRINCIPAL SUBSIDIARIES
At 31 December At 31 March At the date of this report

2020 2021 2022 2023
Proportion of ownership Proportion of ownership Proportion of ownership Proportion of ownership
interest interest interest interest
Place of Held by the Held by the Held by the Held by the Held by the
establishment Registered/paid up Target Held by Target Held by Target Held by Target Held by Target Held by
APPENDIX IIA
Name of subsidiaries and operation capital Company subsidiaries Company subsidiaries Company subsidiaries Company subsidiaries Company subsidiaries Principal activities
Beijing Dayou The PRC RMB5,000,000 — — 100% — 100% — 100% — 100% — Generation and sale
Comprehensive of electricity
Energy Co., Ltd.
(北京大有綜合能源
有限公司)
State Power Investment The PRC RMB100,000,000 — — — — 100% — 100% — 100% — Generation and sale
Group Beijing of electricity
Electric Power Co.,
Ltd. (國電投（北京）
綜合能源有限公司)
Power Investment The PRC RMB971,000,000 — — — — — 100% — 100% — 100% Generation and sale
(Beijing) of electricity
Comprehensive
Energy Service
Center (Limited
– IIA-87 –
Partnership) (電投
（北京）綜合能源服
務中心（有限合夥）)
State Power Investment The PRC RMB10,000,000 — — — — 100% — 100% — 100% — Generation and sale
(Beijing) of electricity
Comprehensive
Intelligent Energy
Research Institute
Co., Ltd. (國電投
（北京）綜合智慧能
源研究院有限公司)
Beijing Huaqing Smart The PRC RMB400,000,000 — 100% — 100% — 100% — 100% — 100% Provision of
Energy Management technical services
Co., Ltd (北京華慶 in relation to
智慧能源管理有限 generation of
公司) electricity
2020 2021 2022 2023
State Power Investment The PRC RMB370,810,000 100% — 100% — 100% — 100% — 100% — Provision of
(Beijing) New technical services
APPENDIX IIA
Energy Investment in relation to

Co., Ltd. Group (國 generation of
家電投集團（北京） electricity
新能源投資有限公
司)
Beijing Dianxing The PRC RMB20,000,000 100% — 100% — 100% — 100% — 100% — Generation and sale
Huangcun New of electricity
Energy Co., Ltd.
(北京電興黃村新能
源有限公司)
National Power The PRC RMB138,000,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
Investment Group of electricity
Channel Wind
Power Co., Ltd. (國
家電投集團通道風
– IIA-88 –
力發電有限公司)
Hunan Hongrun Wind The PRC RMB75,270,000 — 51% — 51% — 51% — 51% — 51% Generation and sale
Power Development of electricity
Co., Ltd. (湖南虹潤
風電開發有限公司)
Jianghua Yao The PRC RMB100,000,000 — — — 100% — 100% — 100% — 100% Generation and sale
Autonomous County of electricity
Kunhao Wind
Power Co., Ltd. (江
華瑤族自治縣坤昊
風力發電有限公司)
Leiyang Taiping Wind The PRC RMB85,562,000 — 66% — 66% — 66% — 66% — 66% Generation and sale
Power Co., Ltd. (耒 of electricity
陽太平風電有限公
司)
2020 2021 2022 2023
Tianneng Power The PRC RMB3,000,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
Investment (Beijing) of electricity
APPENDIX IIA
New Energy
Technology Co.,
Ltd. (天能電投（北
京）新能源科技有
限公司)
Beijing Guoyuan The PRC RMB2,000,000 — — — — — 51% — 51% — 51% Generation and sale
Zhilian Energy of electricity
Development Co.,
Ltd. (北京國遠智聯
能源發展有限公司)
Inner Mongolia Jinghe The PRC RMB4,197,020,188/ 57% — 100% — 100% — 100% — 100% — Generation and sale
New Energy Co., RMB1,026,519,163 of electricity
Ltd. (內蒙古京和新
能源有限公司)
– IIA-89 –
2020 2021 2022 2023
Yantai Runfeng New The PRC RMB79,000,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
Energy of electricity
APPENDIX IIA
Development Co.,
Ltd. (煙台潤豐新能
源發展有限公司)
State Power Investment The PRC RMB89,000,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
Group Jishan of electricity
Zhongnengda
Photovoltaic Power
Generation Co.,
Ltd. (國家電投集團
稷山縣中能達光伏
發電有限公司)
China Power The PRC RMB55,000,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
Investment Shexian of electricity
Photovoltaic Power
Generation Co.,
– IIA-90 –
Ltd. (中電投涉縣光
伏發電有限公司)
Beijing Jingkai The PRC RMB1,367,750,793/ 100% — 79% — 70% — 70% — 70% — Generation and sale
Comprehensive (2020: of electricity
Intelligent Energy RMB170,000,000;
Co., Ltd. (北京經開 2021:
綜合智慧能源有限 RMB1,367,750,793;
公司) 2022:
RMB1,948,224,191;
2023:
RMB1,948,224,191)
Beijing Jingtong The PRC RMB10,000,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
National Post New of electricity
energy Co., Ltd. (北
京京通國郵新能源
有限公司)
Beijing Qingying The PRC RMB819,000/ — — — 100% — 100% — 100% — 100% Generation and sale
Photovoltaic RMB1,000,000 of electricity
Technology Co.,
Ltd. (北京清英光伏
科技有限公司)
2020 2021 2022 2023
Beijing Jingshun New The PRC RMB50,000,000 — — — 100% — 100% — 100% — 100% Generation and sale
Energy Co., Ltd. of electricity
APPENDIX IIA
(北京京順新能源有
限公司)
Beijing Jingfu Xinneng The PRC RMB5,000,000 — — — 100% — 100% — 100% — 100% Generation and sale
New Energy of electricity
Technology Co.,
Ltd. (北京京福鑫能
新能源科技有限公
司)
Beijing Xicheng Tianhe The PRC RMB2,000,000 — — — 100% — 100% — 100% — 100% Generation and sale
Intelligent Energy of electricity
Co., Ltd. (北京西城
天和智慧能源有限
公司)
Beijing Jiulang The PRC RMB5,500,000 — — — 100% — 100% — 100% — 100% Generation and sale
Photovoltaic of electricity
– IIA-91 –
Technology Co.,
Ltd. (北京九朗光伏
科技有限公司)
Lingshou County Green The PRC RMB1,000,000/ — 100% — — — 100% — 100% — 100% Generation and sale
Light Technology RMB27,520,000 of electricity
Co., Ltd. (靈壽縣綠
光科技有限公司)
Lingshou County The PRC RMB47,820,000 — — — — — 100% — 100% — 100% Generation and sale
Qingying of electricity
Technology Co.,
Ltd. (靈壽縣清英科
技有限公司)
Lingshou County The PRC RMB1,000,000/ — 100% — 100% — 100% — 100% — 100% Generation and sale
Anxusheng New RMB27,520,000 of electricity
Energy Technology
Co., Ltd. (靈壽縣安
旭晟新能源科技有
限公司)
2020 2021 2022 2023
Hebei Jielan New The PRC RMB10,000,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
Energy Technology of electricity
APPENDIX IIA
Co., Ltd. (河北潔藍

新能源科技有限公
司)
Zhongwei Hengji The PRC RMB90,000,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
Weiye Photovoltaic of electricity
Power Co., Ltd. (中
衛恒基偉業光伏電
力有限公司)
Fuxin Shenhua Joint The PRC RMB175,500,000 — — — 100% — 100% — 100% — 100% Provision of
Wind Power Co., technical services
Ltd. (阜新聯合風力 of electricity
發電有限公司)
State Power Investment The PRC RMB321,900,000 — — — 100% — 100% — 100% — 100% Generation and sale
Group Damao of electricity
Banner New Energy
– IIA-92 –
Power Generation
Co., Ltd. (國家電投
集團達茂旗新能源
發電有限公司)
State Power Investment The PRC RMB314,890,000 — — — 100% — 100% — 100% — 100% Generation and sale
Group Siziwang Qi of electricity
Wind Power
Heating Co., Ltd.
(國家電投集團四子
王旗風電供熱有限
公司)
Taiwusi Banner United The PRC RMB89,000,000 — — — 100% — 100% — 100% — 100% Generation and sale
Wind Power Co., of electricity
Ltd. (太僕寺旗聯合
Taiwusi Banner The PRC RMB136,000,000 — — — 100% — 100% — 100% — 100% Generation and sale
Shenhua Joint Wind of electricity
Power Investment
Co., Ltd. (太僕寺旗
申華協合風力發電
投資有限公司)
2020 2021 2022 2023
Wujiaqu Fengyang New The PRC RMB150,000,000 — 75% — 75% — 75% — 75% — 75% Generation and sale
APPENDIX IIA
(五家渠風陽新能源
有限公司)
Turpan Electric New The PRC RMB168,000,000 — 52% — 52% — 52% — 52% — 52% Provision of
Energy Co., Ltd. technical services
(吐魯番特變電工新 of electricity
能源有限公司)
Mulei County Haiyuan The PRC RMB3,333,333 — 70% — 70% — 70% — 70% — 70% Generation and sale
Wind Power of electricity
Limited Liability
Company (木壘縣海
元風力發電有限責
任公司)
Wujiaqu Xinte Energy The PRC RMB38,000,000 — 60% — 60% — 60% — 60% — 60% Generation and sale
Co., Ltd. (五家渠特 of electricity
變電工光電科技有
– IIA-93 –
限責任公司)
Jimu Is Xinte Wind The PRC RMB75,640,000 — 51% — 51% — 51% — 51% — 51% Generation and sale
Power Co., Ltd. (吉 of electricity
木乃新特風電有限
公司)
Tumu Shukemeng New The PRC RMB35,000,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
Photovoltaic Power of electricity
Generation Co.,
Ltd. (圖木舒克蒙新
光伏發電有限公司)
Tumushuk City Haitian The PRC RMB32,360,000 — 97% — 97% — 97% — 97% — 97% Generation and sale
New Energy Co., of electricity
Ltd. (圖木舒克市海
天達新能源有限公
司)
Emin Haitianda The PRC RMB32,070,000 — 85% — 85% — 85% — 85% — 85% Generation and sale
Optoelectronics Co., of electricity
Ltd. (額敏海天達光
電有限公司)
2020 2021 2022 2023
Xinjiang Hope The PRC RMB34,000,000 — — — 100% — 100% — 100% — 100% Generation and sale
Chuangmei of electricity
APPENDIX IIA
Photoelectric
Engineering Co.,
Ltd. (新疆希望創美
光電工程有限公司)
Weili County Building The PRC RMB280,000,000 — — — — — 100% — 100% — 100% Provision of
Materials Junxin technical services
Guangfu Power of electricity
Generation Co.,
Ltd. (尉犁縣中建材
浚鑫光伏發電有限
公司)
Yingji Shabaode The PRC RMB80,000,000 — — — — — 100% — 100% — 100% Generation and sale
Generation Co.,
Ltd. (英吉沙保德光
– IIA-94 –
Emin Haitianda The PRC RMB56,000,000 — 55% — 55% — 55% — 55% — 55% Generation and sale
Generation Co.,
Ltd. (額敏海天達光
Keping County The PRC RMB93,000,000 — — — — — 100% — 100% — 100% Generation and sale
Building Materials of electricity
Photovoltaic Power
Generation Co.,
Ltd. (柯坪縣中建材
Emin County Wind The PRC RMB56,000,000 — 75% — 75% — 75% — 75% — 75% Generation and sale
Sunshine Volt of electricity
Power Generation
Co., Ltd. (額敏縣風
陽光伏發電有限公
司)
2020 2021 2022 2023
Puyang Zhongjian New The PRC RMB250,000,000 — — — — — 100% — 100% — 100% Generation and sale
APPENDIX IIA
Development Co.,
Ltd. (濮陽中建新能
源科技發展有限公
司)
Luoning County The PRC RMB238,000,000 — — — — — 100% — 100% — 100% Generation and sale
Building Materials of electricity
Junxin Light Volt
Power Generation
Co., Ltd. (洛寧縣中
建材浚鑫光伏發電
有限公司)
Puyang JunXin The PRC RMB2,000,000 — — — — — 100% — 100% — 100% Generation and sale
Agricultural of electricity
Technology Co.,
Ltd. (濮陽浚鑫農業
– IIA-95 –
科技有限公司)
Suqian City Building The PRC RMB119,000,000 — — — — — 100% — 100% — 100% Generation and sale
Materials of electricity
Photovoltaic Power
Generation Co.,
Ltd. (宿遷市中建材
State Power Investment The PRC RMB586,095,700 100% — 100% — 100% — 100% — 100% — Generation and sale
Group Inner of electricity
Mongolia New
Energy Co., Ltd.
(國家電投集團內蒙
古新能源有限公司)
Guodian Nailun Tumt The PRC RMB109,993,800 — — — 55% — 55% — 55% — 55% Generation and sale
Left Banner of electricity
Photovoltaic Power
Generation Co.,
Ltd. (國電奈倫土默
特左旗光伏發電有
限公司)
2020 2021 2022 2023
Aohanqi ShuoKe The PRC RMB64,000,000 — — — 99% — 100% — 100% — 100% Generation and sale
APPENDIX IIA
Generation Co.,
Ltd. (敖漢旗爍科光
Dengkou County Desert The PRC RMB100,000,000 — — — — — 100% — 100% — 100% Generation and sale
Control New of electricity
Energy Co., Ltd.
(磴口縣沙漠治理新
能源股份有限公司)
Inner Mongolia Alxa The PRC RMB111,472,300 — — — — — 100% — 100% — 100% Generation and sale
Yellow and Sand of electricity
New Energy Co.,
Ltd. (內蒙古阿拉善
治黃治沙新能源有
限公司)
Dengkou County The PRC RMB112,828,200 — — — — — 100% — 100% — 100% Generation and sale
– IIA-96 –
Yellow Sand of electricity
Control New
Energy Limited
Liability Company
(磴口縣治黃治沙新
能源有限責任公司)
Ningxia Jingyin Smart The PRC RMB10,000,000/ 100% — 100% — 100% — 100% — 100% — Provision of
New Energy Co., RMB166,440,000 technical services
Ltd. (寧夏京銀智慧 of electricity
新能源有限公司)
Qingtongxia Guxia The PRC RMB155,200,000 — — — 70% — 70% — 70% — 70% Provision of
New Energy Co., technical services
Ltd. (青銅峽市古峽 of electricity
Shizuishan Jingao New The PRC RMB91,480,000/ — 100% — 100% — 100% — 100% — 100% Generation and sale
Energy Technology RMB121,970,000 of electricity
Co., Ltd. (石嘴山晶
澳新能源技術有限
公司)
2020 2021 2022 2023
Ningxia Zhongguang The PRC RMB155,200,000 — — — 70% — 70% — 70% — 70% Generation and sale
APPENDIX IIA
Co., Ltd. (寧夏中光

能源科技有限公司)
Ningxia Liancheng The PRC RMB28,770,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
Generation Co.,
Ltd. (寧夏聯成光伏
發電有限公司)
Yongning County Devu The PRC RMB31,750,000 — 100% — 100% — 100% — 100% — 100% Provision of
Ltd. (永寧縣德伏新 of electricity
能源有限公司)
Yongning County The PRC RMB31,510,000 — 100% — 100% — 100% — 100% — 100% Provision of
Deguang New technical services
(永寧縣德光新能源
– IIA-97 –
有限公司)
Yongning County The PRC RMB27,990,000 — 100% — 100% — 100% — 100% — 100% Provision of
Derun Source New technical services
(永寧縣德潤源新能
源有限公司)
Ningxia Yanchi Trade The PRC RMB33,200,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
Ltd. (寧夏鹽池通商
Yinchuan Jingao New The PRC RMB91,480,000/ — 100% — 100% — 100% — 100% — 100% Provision of
Energy Technology RMB121,970,000 technical services
Co., Ltd. (銀川市晶 of electricity
澳新能源科技有限
公司)
Ningxia GuQing New The PRC RMB136,980,000 — — — — — 70% — 70% — 70% Generation and sale
(寧夏古青新能源有
限公司)
2020 2021 2022 2023
Tongxin County The PRC RMB136,980,000 — — — — — 70% — 70% — 70% Generation and sale
Yuexin Energy Co., of electricity
APPENDIX IIA
Ltd. (同心縣粵中新
能源有限公司)
Group Pingluo of electricity
Huayi Wind Power
集團平羅華儀風力
發電有限公司)
Jingtai Xinneng The PRC RMB71,600,000 — 70% — 70% — 70% — 70% — 70% Generation and sale
Yongtai Wind of electricity
Power Co., Ltd. (景
泰新能永泰風電有
限公司)
Jingtai Xinneng Temple The PRC RMB72,000,000 — 80% — 80% — 80% — 80% — 80% Generation and sale
Wind Power Co., of electricity
– IIA-98 –
Ltd. (景泰新能寺灘
風電有限公司)
Group Ningxia of electricity
Zhongrui Wind
Energy Co., Ltd.
(國家電投集團寧夏
中瑞風能有限公司)
Group Ningxia of electricity
Luoshitan Wind
家電投集團寧夏落
石灘風力發電有限
公司)
State Power Investment The PRC RMB251,250,000/ 100% — 100% — 100% — 100% — 100% — Generation and sale
Group Shandong RMB393,250,000 of electricity
New energy Co.,
山東新能源有限公
司)
2020 2021 2022 2023
Huaiyuan Green The PRC RMB100,000,000 — — — — — 100% — 100% — 100% Generation and sale
Electric New of electricity
APPENDIX IIA
Energy Co., Ltd.

(懷遠綠電新能源有
限公司)
Xintai Green Electric The PRC RMB20,000,000 — — — 100% — 100% — 100% — 100% Generation and sale
Ltd. (新泰綠電新能
源有限公司)
Yangxin Dehui Wind The PRC RMB218,000,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
Power Co., Ltd. (陽 of electricity
信德惠風力發電有
限公司)
Leling Runneng Wind The PRC RMB127,430,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
Power Co., Ltd. (樂 of electricity
陵潤能風力發電有
限公司)
– IIA-99 –
Gaotang Runneng New The PRC RMB50,000,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
(高唐潤能新能源有
限公司)
Shanxian Huangbai The PRC RMB32,000,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
River Photovoltaic of electricity
Power Generation
Co., Ltd. (單縣黃白
河光伏發電有限公
司)
Xiajin Huineng Wind The PRC RMB81,000,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
Power Co., Ltd. (夏 of electricity
津惠能風力發電有
限公司)
State Power Investment The PRC RMB1,520,000 — 70% — 70% — 70% — 70% — 70% Provision of
(Qingdao) technical services
Comprehensive of electricity
Intelligent Energy
（青島）綜合智慧能
源有限公司)
2020 2021 2022 2023
Weifang Huaxu Solar The PRC RMB38,450,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
Photovoltaic of electricity
APPENDIX IIA
Agriculture Co.,
Ltd. (濰坊華旭太陽
能光伏農業有限公
司)
Weifang Guanggu The PRC RMB21,360,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
Agricultural of electricity
Ecological Park
Co., Ltd. (濰坊光穀
農業生態園有限公
司)
Anqiu Light Energy The PRC RMB1,000,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
Ltd. (安丘市光能新
能源有限公司)
Gaotang Longhong The PRC RMB34,350,000 — 100% — 100% — 100% — 100% — 100% Provision of
– IIA-100 –
Ltd. (高唐龍泓新能 of electricity
源有限公司)
Shandong Zhongjing The PRC RMB46,850,000 — 100% — 100% — 100% — 100% — 100% Provision of
Energy Investment technical services
Development Co.,
Ltd. (山東中景能投
新能源開發有限公
司)
Lingshou County The PRC RMB5,000,000 — — — 100% — 100% — 100% — 100% Generation and sale
Guoxin New Energy of electricity
Technology Co.,
Ltd. (靈壽縣國鑫新
能源科技有限公司)
Lingshou County The PRC RMB5,000,000 — — — 100% — 100% — 100% — 100% Provision of
Yingyuan New technical services
Co., Ltd. (靈壽縣英
源新能源科技有限
公司)
2020 2021 2022 2023
Hefei Yuanjing The PRC RMB111,797,456 — — — 100% — 100% — 100% — 100% Generation and sale
APPENDIX IIA
Co., Ltd. (合肥源景

光伏電力有限公司)
Yantai Qingneng Wind The PRC RMB155,000,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
Power Co., Ltd. (煙 of electricity
台清能風力發電有
限公司)
Beijing Guorui Fuding The PRC RMB127,125,206 — 93% — 100% — 100% — 100% — 100% Provision of
Investment Co., technical services
Ltd. (北京國瑞福鼎 of electricity
投資股份有限公司)
Liaocheng Longhong The PRC RMB34,370,000 — 100% — 100% — 100% — 100% — 100% Provision of
Ltd. (聊城龍泓新能 of electricity
源有限公司)
Nanjing Zhonghuan The PRC RMB5,000,000 — 100% — 100% — 100% — 100% — 100% Provision of
Light Power Energy technical services
– IIA-101 –
Co., Ltd. (南京中環 of electricity
之光電力能源有限
公司)
Zhucheng Green The PRC RMB20,000,000 — — — — — 100% — 100% — 100% Generation and sale
Electric New of electricity
Energy Co., Ltd.
(諸城綠電新能源有
限公司)
State Power Investment The PRC RMB751,365,000 100% — 100% — 100% — 100% — 100% — Generation and sale
Group Shanxi New of electricity
Energy Co., Ltd.
(國家電投集團山西
Group Yuxian Wind of electricity
家電投集團盂縣風
電有限公司)
2020 2021 2022 2023
Guodian Investment The PRC RMB20,000,000 — — — — — 100% — 100% — 100% Generation and sale
Qinshui of electricity
APPENDIX IIA
Comprehensive
Intelligent Energy
Co., Ltd. (國電投沁
水綜合智慧能源有
限公司)
Group Shanxi New of electricity
Energy Co., Ltd.
Qinshui Branch (國
家電投集團山西新
能源有限公司沁水
分公司)
State Power Investment The PRC RMB267,800,000 — 100% — 100% — 100% — 100% — 100% Provision of
Group LAN County technical services
– IIA-102 –
嵐縣新能源有限公
司)
Linfen Hua Deyu New The PRC RMB10,000,000 — 70% — 70% — 70% — 70% — 70% Generation and sale
(臨汾華得宇新能源
有限公司)
Youyu County The PRC RMB93,400,000 — — — 100% — 100% — 100% — 100% Generation and sale
Huaguang Power of electricity
Generation Co.,
Ltd. (右玉縣華光發
電有限責任公司)
State Power Investment The PRC RMB15,000,000/ — 60% — 60% — 60% — 60% — 60% Generation and sale
Group Shanyin RMB89,980,000 of electricity
County Yuyuantai
Photovoltaic Power
Generation Co.,
山陰縣煜元泰光伏
發電有限公司)
2020 2021 2022 2023
State Power Investment The PRC RMB126,000,000/ — 100% — 100% — 100% — 100% — 100% Provision of
Group Fanzhi New RMB154,480,000 technical services
APPENDIX IIA

(國家電投集團繁峙
CLP Gujiao New The PRC RMB67,470,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
(中電投古交新能源
有限公司)
Group Fanzhi of electricity
Yunwuyu Wind
家電投集團繁峙雲
霧峪風電有限公司)
State Power Investment The PRC RMB215,873,000/ 100% — 100% — 100% — 100% — 100% — Generation and sale
(Tianjin) Distributed RMB253,373,000 of electricity
Energy Co., Ltd.
– IIA-103 –
(國電投(天津)分散
式能源有限公司)
Tianjin Zhongdian The PRC RMB248,260,000 — 70% — 70% — 70% — 70% — 70% Generation and sale
Shengfa of electricity
Photovoltaic Power
Generation Co.,
Ltd. (天津中電晟發
Investment (Tianjin of electricity
Wuqing)
Photovoltaic Power
Generation Co.,
Ltd. (中電投（天津
武清）光伏發電有
限公司)
2020 2021 2022 2023
Investment Jingrun of electricity
APPENDIX IIA
(Tianjin)
Photovoltaic Power
Generation Co.,
Ltd. (中電投京潤
（天津）光伏發電有
限公司)
Investment of electricity
Jingsheng (Tianjin)
Photovoltaic Power
Generation Co.,
Ltd. (中電投京盛
（天津）光伏發電有
限公司)
Tianjin Jingneng The PRC RMB9,719,400 — 100% — 100% — 100% — 100% — 100% Generation and sale
Shengfa New of electricity
– IIA-104 –
Energy Technology
Co., Ltd. (天津靜能
盛發新能源技術有
限公司)
Tianjin Zhongtian The PRC RMB22,290,000 — 70% — 70% — 70% — 70% — 70% Generation and sale
Eneng Photovoltaic of electricity
Power Generation
Co., Ltd. (天津中天
恩能光伏發電有限
公司)
Tianjin Zhongtian The PRC RMB20,900,000 — 70% — 70% — 70% — 70% — 70% Generation and sale
Xinde Photovoltaic of electricity
Power Generation
Co., Ltd. (天津中天
信德光伏發電有限
公司)
(Huanghua) New of electricity
Energy Co., Ltd.
(國電投（黃驊）新
能源有限公司)
2020 2021 2022 2023
Guodian Investment The PRC RMB2,000,000 — 100% — 100% — 100% — 100% — 100% Generation and sale
Port Energy of electricity
APPENDIX IIA
(Tianjin) New
Energy Co., Ltd.
(國電投港能（天津）
新能源有限責任公
司)
Guote Intelligent The PRC RMB5,000,000 — 70% — 70% — 70% — 70% — 70% Generation and sale
Energy (Tianjin) of electricity
Co., Ltd. (國特智慧
能源（天津）有限
公司)
Jinyuan Xinde (Tianjin) The PRC RMB32,040,000 — 70% — 70% — 70% — 70% — 70% Generation and sale
Technology Co.,
Ltd. (津源信德（天
津）新能源科技有
限公司)
– IIA-105 –
State Power Investment The PRC RMB2,600,000/ — — — — — 100% — 100% — 100% Generation and sale
(Anyang) Clean RMB7,300,000 of electricity
Energy Co., Ltd.
(國電投（安陽）清
潔能源有限公司)
Power Investment The PRC RMB9,750,000/ — — — — — 60% — 60% — 60% Provision of
(Greater Hinggan RMB18,759,000 technical services
Mountains) Clean of electricity
Energy Co., Ltd.
(電投（大興安嶺）
清潔能源有限公司)
Note:
(a) The English translation of the companies’ names is for reference only. The official names of these companies are in Chinese.
(b) Statutory financial statement of these PRC subsidiaries were unaudited for the each of the years ended 31 December 2020, 2021 and 2022, statutory financial statement of these PRC
subsidiaries prepared and audited by BDO China Shu Lun Pan Certified Public Accountants LLP.
Material non-controlling interests
The table below shows details of non wholly-owned subsidiaries of the Target Company that have material non-controlling interests:
Proportion of ownership interests and

Place of voting rights held by non-controlling Total comprehensive income allocated to
Name of subsidiaries incorporation interests non-controlling interests Accumulated non-controlling interests
Three Three Three
months months months
ended ended ended
APPENDIX IIA
Years ended 31 December 31 March Years ended 31 December 31 March Years ended 31 December 31 March
2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Inner Mongolia Jinghe PRC 43% — — — 141,704 — — — 1,941,085 — — —
New Energy Co., Ltd.
(內蒙古京和新能源有
限公司) and it
subsidiaries
(collectively known as
‘‘Jinghe Group’’)
Beijing Jingkai PRC — 21% 30% 30% — 14,363 71,570 13,027 — 778,693 1,873,913 1,913,913
Comprehensive
Intelligent Energy Co.,
Ltd. (北京經開綜合智
慧能源有限公司) and
its subsidiaries
(collectively known as
– IIA-106 –
‘‘Jingkai Group’’)
Subsidiaries with individually immaterial non-controlling interests 791,820 1,061,325 1,907,380 1,904,250
2,732,905 1,840,018 3,781,293 3,818,163
The non-controlling interests in respect of the rest of entities with non-controlling interests were individually not material. Set out below are the
summarised financial information in respect of each the Target Company’s subsidiaries that has material non-controlling interests.
(1) Jinghe Group
Summarised consolidated statements of financial position

Three
months
ended
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Non-current assets 6,508,083 4,404,697 4,006,331 3,969,251
Current assets 2,291,912 2,004,175 2,635,538 2,709,872
Non-current liabilities (2,282,751) (2,079,771) (1,898,564) (1,731,499)
Current liabilities (1,158,162) (1,440,958) (1,564,426) (1,678,664)
Total equity 5,359,082 2,888,143 3,178,879 3,268,960
Non-controlling interests within Jinghe Group (825,595) — — —
Jinghe Group 4,533,487 2,888,143 3,178,879 3,268,960
Non-controlling interests of Jinghe Group (at 43%) 1,941,085 N/A N/A N/A
(Note: Jinghe Group became a wholly-owned subsidiary of the Target Company from 12 August 2021.)
Summarised consolidated income statements and consolidated statements of comprehensive income

Three
months
ended
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Revenue 1,037,409 1,041,243 823,656 235,634
Profit and total comprehensive income for the year/
period 355,561 453,010 26,188 86,961
Profit and total comprehensive income attributable
to the non-controlling interests of Jinghe Group’s
subsidiaries (24,605) — — —
to equity holders of Jinghe Group 330,956 453,010 26,188 86,961
Total comprehensive income attributable to the non-
controlling interests of Jinghe Group (at 43%) 141,704 — — —
Summarised consolidated statements of cash flows

Three
months
ended
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Dividends paid — — — —
Dividends paid to non-controlling interests — — — —
Net cash inflow (outflow) from operating activities 555,766 879,493 (184,587) 708,159
Net cash (outflow) inflow from investing activities (62,982) (32,969) 228,272 (2,717)
Net cash (outflow) inflow from financing activities (429,518) (1,023,855) 48,118 (484,542)
Net increase in cash and cash equivalents 63,266 (177,331) 91,803 220,900
period 139,747 203,013 25,682 117,485
Cash and cash equivalents at end of year/period 203,013 25,682 117,485 338,385
The financial information presented above is before inter-company eliminations.
– IIA-107 –
(2) Jingkai Group

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Non-current assets 405,611 1,494,267 1,457,299 1,454,395
Current assets 209,593 3,368,350 5,917,377 6,039,103
Non-current liabilities (88,510) (432,963) (326,100) (327,325)
Current liabilities (342,281) (651,425) (760,277) (743,646)
Total equity 184,413 3,778,229 6,288,299 6,422,527
Non-controlling interests within Jingkai Group — — — —
Equity attributable to equity holders of Jingkai
Group 184,413 3,778,229 6,288,299 6,422,527
Non-controlling interests of Jingkai Group (2021: at
21%, 2022: at 30%, 2023: at 30%) N/A 778,693 1,873,913 1,913,913
Summarised consolidated statements of profit or loss and consolidated statements of comprehensive income
Three
months
ended
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Revenue 14,633 212,617 259,096 65,299
Profit and total comprehensive income for the year/
period 14,412 69,686 240,168 43,714
to the non-controlling interests of Jingkai Group’s
subsidiaries — — — —
to equity holders of Jingkai Group 14,412 69,686 240,168 43,714
Total comprehensive income attributable to the non-
controlling interests of Jingkai Group (2021: at
21%, 2022: at 30%, 2023: at 30%) N/A 14,363 71,570 13,027
Summarised consolidated statements of cash flows

Three
months
ended
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Net cash inflow/(outflow) from operating activities (4,531) 190,679 193,496 33,849
Net cash outflow from investing activities (390,604) (686,580) (60,053) (17,530)
Net cash inflow/(outflow) from financing activities 401,305 556,713 (75,387) 67,128
Net increase in cash and cash equivalents 6,170 60,812 58,056 83,447
period — 6,170 66,982 125,038
Cash and cash equivalents at end of year/period 6,170 66,982 125,038 208,485
– IIA-108 –
Transactions with non-controlling interests
(a) During the year ended 31 December 2020, the non-controlling shareholders of certain non-wholly owned subsidiaries
of the Target Group made capital injection in aggregate of approximately RMB12,956,000.
(b) On 12 August 2021, the Target Group acquired remaining 43% equity of Jinghe Group from the non-controlling
equity shareholder with cash consideration of RMB2,000,000,000. Immediately prior to the purchase, the carrying
amount of the 49% non-controlling interests in these the PRC subsidiaries in aggregate was approximately
RMB1,941,085,000. The Group recognised an decrease in non-controlling interests by approximately
RMB1,941,085,000.
On 30 December 2021, Jingkai Group entered into an share addition agreement with ICBC Financial Asset
Investment Co. Ltd (工銀金融資產投資有限公司) (‘‘ICBC Financial Asset’’), ICBC Financial Asset agreed to issue
inject share capital to Jingkai Group and resulted an increase in non-controlling interests of 21%. The Target Group
recognised an increase in non-controlling interest by approximately RMB791,950,000.
During the year ended 31 December 2021, the non-controlling equity shareholders of certain non-wholly owned
subsidiaries of the Target Group made capital injection in aggregate of approximately RMB295,103,000 and
recognised an increase in non-controlling interest by approximately RMB133,369,000 and credited to capital reserve
by approximately RMB43,904,000.
(c) On 30 June 2022, Jingkai Group entered into an share addition agreement with Beijing Chengtong ICBC Equity
Investment Fund (北京誠通工銀股權投資基金) (‘‘Beijing Chengtong’’), Beijing Chengtong agreed to inject share
capital to Jingkai Group and resulted an increase in non-controlling interests of from 21% to 30%. The Target Group
recognised an increase in non-controlling interest by RMB1,798,725,000 and decrease in capital reserve by
RMB1,963,000.
(d) During the period ended 31 March 2023, the non-controlling equity shareholders of certain non-wholly owned
subsidiaries made capital injection in aggregate of approximately RMB10,000,000.
40. CONTINGENT LIABILITIES
As at 31 December 2020, 2021 and 2022 and 31 March 2023, the Target Group had no significant contingent liabilities.
41. RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES CASH FLOWS
Borrowings Amounts
from due to
Bank Other related related Lease
borrowings borrowings parties parties Liabilities
At 1 January 2020 8,270,834 3,049,689 2,185,860 567,421 361,847
Drawdown of bank borrowings 4,762,199 — — — —
Repayment of bank borrowings (3,920,363) — — — —
Drawdown of other borrowings — 235,100 — — —
Repayment of other borrowings — (1,228,694) — — —
Drawdown of borrowings from related parties — — 599,322 — —
Repayment of borrowings from related parties — — (21,749) — —
Advance from related parties — — — 824,053 —
Repayment to related parties — — — (815,752) —
Payments for lease liabilities — — — — (43,561)
Interest expense (Note 12) 556,047 174,910 106,776 — 13,387
Acquisitions of subsidiaries (Note 37) 88,510 307,746 — — —
– IIA-109 –
Borrowings Amounts
from due to
At 31 December 2020 and 1 January 2021 9,757,227 2,538,751 2,870,209 575,722 331,673
Repayment of other borrowings — (975,884) — — —
New lease — — — — 22,795
Acquisitions of subsidiaries (Note 37) 962,464 392,801 — — 11,975
At 31 December 2021 15,440,380 2,328,401 2,796,034 804,706 330,612
Borrowings Amounts
from due to
At 1 January 2022 15,440,380 2,328,401 2,796,034 804,706 330,612
Repayment of other borrowings — (1,659,511) — — —
Drawdown of borrowings from related parties — — 2,628,529 — —
Repayment of borrowings from related parties — — (3,607,364) — —
Advance from related parties — — — 1,751,527 —
New lease — — — — 115,926
Acquisitions of subsidiaries (Note 37) 172,714 — — — 17,392
At 31 December 2022 and 1 January 2023 16,452,996 1,084,081 2,069,630 2,047,566 427,665
Repayment of bank borrowings (148,951) — — — —
At 31 March 2023 17,447,491 978,465 2,170,555 1,947,066 414,220
– IIA-110 –
Borrowings Amounts
from due to
At 1 January 2022 15,440,380 2,328,401 2,796,034 804,706 330,612
Repayment of borrowings from related parties — — (1,024,607) — —
New lease — — — — 5,388
Acquisitions of subsidiaries (Note 37) 172,714 — — — 17,392
At 31 March 2022 (unaudited) 15,871,452 1,571,457 2,385,471 1,343,511 346,668
42. STATEMENTS OF RESERVES OF THE TARGET COMPANY
Movements in the Target Company’s reserves
(Accumulated
losses)/Retained
Capital reserve earnings Total
RMB’000 RMB’000 RMB’000
At 1 January 2020 1,607,232 (434,300) 1,172,932
Profit and total comprehensive income for the year — 430,475 430,475
Dividends (Note 15) — (114,506) (114,506)
At 31 December 2020 and 1 January 2021 1,607,232 (118,331) 1,488,901
Dividends (Note 15) — (260,362) (260,362)
At 31 December 2021 and 1 January 2022 1,607,232 5,533 1,612,765
Dividends (Note 15) — (488,263) (488,263)
At 31 December 2022 and 1 January 2023 1,607,232 (414,921) 1,192,311
Loss and total comprehensive expense for the period — (22,283) (22,283)
At 31 March 2023 1,607,232 (437,204) 1,170,028
At 1 January 2022 1,607,232 5,533 1,612,765
Profit and total comprehensive income for the period — 114,288 114,288
At 31 March 2022 (unaudited) 1,607,232 119,821 1,727,053
43. COMMITMENTS
Save as disclosed elsewhere in the Historical Financial Information, the Target Group has the following capital
commitments.
Three
months
ended
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Contracted but not provided for in respect of
— Property, plant and equipment 79,309 96,810 56,640 59,472
— Construction in progress 474,161 204,553 289,019 297,690
44. EARNINGS PER SHARE
No earnings per share information is presented for the purpose of this report as its inclusion is not considered meaningful.
– IIA-111 –
45. EVENTS AFTER THE REPORTING PERIOD
There are no significant subsequent events occurred after 31 March 2023 and up to the date of this accountants’ report.
III. SUBSEQUENT FINANCIAL INFORMATION
No audited financial statements have been prepared by the Target Group in respect of any period
subsequent to 31 March 2023.
– IIA-112 –
APPENDIX IIB ACCOUNTANTS’ REPORT ON HEILONGJIANG COMPANY
ACCOUNTANTS’ REPORT ON HEILONGJIANG COMPANY
The following is the text of reports received from Confucius International CPA Limited, Certified
Public Accountants, Hong Kong, for the purpose of incorporation in this circular.
ACCOUNTANTS’ REPORT ON HISTORICAL FINANCIAL INFORMATION OF SPIC

HEILONGJIANG POWER CO., LTD. AND ITS SUBSIDIARIES
Introduction
We report on the historical financial information of SPIC Heilongjiang Power Co., Ltd.* (國家電
投集團黑龍江電力有限公司) (formerly known as SPIC Heilongjiang Lvtuo New Energy Co., Ltd.* (國
家電投集團黑龍江綠拓新能源有限公司)) (the ‘‘Target Company’’) and its subsidiaries (together, the
‘‘Target Group’’) set out on pages IIB-4 to IIB-57, which comprises the consolidated statements of
financial position as at 31 December 2020, 2021, 2022 and 31 March 2023, and the consolidated
statements of profit or loss and other comprehensive income, the consolidated statements of changes in
equity and the consolidated statements of cash flows for each of years ended 31 December 2020, 2021
and 2022 and the three months ended 31 March 2023 (the ‘‘Relevant Periods’’) and a summary of
significant accounting policies and other explanatory information (together, the ‘‘Historical Financial
Information’’). The Historical Financial Information of the Target Group set out on pages IIB-4 to IIB-
57 forms an integral part of this report, which has been prepared for inclusion in the circular of China
Power International Development Limited (the ‘‘Company’’) dated 18 August 2023 (the ‘‘Circular’’) in
connection with the major and connected transactions in relation to the acquisition of the Target
Company.
Director’s responsibilities for the Historical Financial Information
The sole director of the Target Company is responsible for the preparation of Historical Financial
Information that gives a true and fair view in accordance with the basis of preparation set out in Note 2
to the Historical Financial Information, and for such internal control as the sole director determine is
necessary to enable the preparation of Historical Financial Information that is free from material
Investment Circulars’’ issued by the Hong Kong Institute of Certified Public Accountants (the
‘‘HKICPA’’). This standard requires that we comply with ethical standards and plan and perform our
work to obtain reasonable assurance about whether the Historical Financial Information is free from
material misstatement.
– IIB-1 –
estimates made by the sole director of the Target Company, as well as evaluating the overall
presentation of the Historical Financial Information.
our opinion.
Opinion
In our opinion, the Historical Financial Information gives, for the purposes of the accountants’
report, a true and fair view of the Target Group’s financial position as at 31 December 2020, 2021, 2022
and 31 March 2023, and of the Target Group’s financial performance and cash flows for the Relevant
Periods in accordance with the basis of preparation set out in Note 2 to the Historical Financial
Information.
Review of stub period comparative financial information
We have reviewed the stub period comparative financial information of the Target Group which
comprises the consolidated statement of profit or loss and other comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the three months ended
31 March 2022 and other explanatory information (the ‘‘Stub Period Comparative Financial
Information’’). The sole director of the Target Company is responsible for the preparation of the Stub
Period Comparative Financial Information in accordance with the basis of preparation set out in Note 2
to the Historical Financial Information. Our responsibility is to express a conclusion on the Stub Period
Comparative Financial Information based on our review. We conducted our review in accordance with
Hong Kong Standard on Review Engagements 2410 ‘‘Review of Interim Financial Information
Performed by the Independent Auditor of the Entity’’ issued by the HKICPA. A review consists of
making inquiries, primarily of persons responsible for financial and accounting matters, and applying
analytical and other review procedures. A review is substantially less in scope than an audit conducted
in accordance with Hong Kong Standards on Auditing and consequently does not enable us to obtain
assurance that we would become aware of all significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion. Based on our review, nothing has come to our
attention that causes us to believe that the Stub Period Comparative Financial Information, for the
purposes of the accountants’ report, is not prepared, in all material respects, in accordance with the basis
of preparation set out in Note 2 to the Historical Financial Information.
Hong Kong Limited and the Companies (Winding Up and Miscellaneous Provisions) Ordinance
Adjustments

Statements as defined on page IIB-4 have been made.
– IIB-2 –
Dividends
We refer to Note 17 to the Historical Financial Information which contains information about the
dividends paid by the Target Company in respect of the Relevant Periods.
Confucius International CPA Limited

Tsang Kwong Kin

Practising Certificate Number: P07368
Hong Kong, 18 August 2023
– IIB-3 –
HISTORICAL FINANCIAL INFORMATION OF THE TARGET GROUP
The financial statements of the Target Group for the Relevant Periods, on which the Historical
Financial Information is based, were audited by Confucius International CPA Limited in accordance
with the Hong Kong Standards on Auditing issued by the HKICPA (‘‘Underlying Financial
Statements’’).
The Historical Financial Information of the Target Group is presented in Renminbi (‘‘RMB’’) and
all values are rounded to the nearest thousand (RMB’000) except when otherwise indicated.
– IIB-4 –
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE

INCOME
Three months ended
2020 2021 2022 2022 2023
(Unaudited)
Revenue 9 401,845 914,639 1,282,159 290,076 366,304
Other income 10 421 497 1,053 275 397
Fuel costs — — (135,406) (40,405) (70,033)
Depreciation (140,151) (357,336) (468,291) (92,384) (131,247)
Staff costs 11 (25,028) (49,644) (67,039) (18,823) (25,443)
Repairs and maintenance — (605) (3,719) (1,203) (397)
Subcontracting costs (12,219) (41,828) (82,536) (21,078) (19,642)
Consumables (1,607) (7,570) (16,528) (3,562) (5,435)
Impairment losses on trade and other receivables under
expected credit loss model — (1,606) (654) — —
Other gains and (losses), net 12 9,198 3,439 7,105 — 1,627
Operating profit 14 179,704 406,765 453,069 98,528 101,978
Finance income 15 945 1,358 2,163 238 182
Finance costs 15 (173,163) (335,802) (397,723) (83,109) (92,160)
Profit before tax 7,486 72,321 57,509 15,657 10,000
Income tax credit (expense) 16 1,613 (8,604) (8,546) (2,690) (2,164)
Profit for the year/period 9,099 63,717 48,963 12,967 7,836
Other comprehensive income
Item that will not be reclassified to profit or loss:
Fair value gain on equity instruments at fair value
through other comprehensive income (‘‘FVTOCI’’),
net of tax — — 3,408 — 1,342
Other comprehensive income for the year/period — — 3,408 — 1,342
Total comprehensive income for the year/period 9,099 63,717 52,371 12,967 9,178
Profit for the year/period attributable to:
Equity holder of the Target Company 1,127 56,641 52,396 2,146 (5,492)
Non-controlling interests 7,972 7,076 (3,433) 10,821 13,328
9,099 63,717 48,963 12,967 7,836
Total comprehensive income for the year/period
attributable to:
Equity holder of the Target Company 1,127 56,641 55,804 2,146 (4,150)
Non-controlling interests 7,972 7,076 (3,433) 10,821 13,328
9,099 63,717 52,371 12,967 9,178
The accompany notes form part of the Historical Financial Information.
– IIB-5 –
CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at
2020 2021 2022 2023
Non-current assets
Intangible assets 21 132,970 124,935 122,896 120,418
Equity instruments at FVTOCI 22 3,557 7,105 51,650 93,439
Deferred tax assets 23 50,845 54,416 62,579 63,426
Other non-current assets 24 108,745 299,727 244,361 375,300
7,187,048 7,456,189 10,089,769 10,147,690
Current assets
Inventories 25 — — 61,245 87,488
Trade and bills receivables 26 738,902 169,344 452,486 591,660
Prepayments, deposits and other receivables 27 629,705 767,015 325,033 314,289
Cash and cash equivalents 28 197,313 91,824 345,494 241,610
1,565,920 1,028,183 1,184,258 1,235,047
Current liabilities
Trade and bills payables 29 7,243 104,788 8,030 16,504
Construction payables 228,996 199,440 263,762 239,554
Contract liabilities 30 — — 29,454 3,567
Other payables and accrued charges 31 118,782 135,686 112,520 67,320
Bank borrowings 32 314,300 268,062 406,836 455,212
Borrowings from a related party 34 — — 809,077 809,077
Tax payables 2,704 5,176 7,623 8,530
674,072 715,245 1,647,617 1,607,074
Net current assets (liabilities) 891,848 312,938 (463,359) (372,027)
Deferred income 36 — 527 506 501
Bank borrowings 32 3,864,700 4,747,994 5,852,488 6,219,721
Other borrowings 33 1,727,686 169,743 150,523 153,119
Borrowings from a related party 34 1,107,000 1,357,791 1,595,854 1,256,264
Deferred tax liabilities 23 37,083 38,350 41,007 41,776
Other non-current liabilities 37 19,073 18,286 17,460 17,501
6,934,964 6,528,706 7,852,510 7,885,289
Net assets 1,143,932 1,240,421 1,773,900 1,890,374
Capital and reserves
Share capital 38 386,580 450,580 450,580 450,580
Other equity instruments 39 — — 360,000 460,000
Reserves 489,863 508,269 524,377 520,227
Equity attributable to equity holder
of the Target Company 876,443 958,849 1,334,957 1,430,807
Non-controlling interests 267,489 281,572 438,943 459,567
Total equity 1,143,932 1,240,421 1,773,900 1,890,374
– IIB-6 –
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to equity holder of the Target Company
Non-
Share Other equity Statutory FVTOCI Retained controlling
capital instruments reserve reserve Other reserve earnings Sub-total interests Total Equity
(Note 38) (Note 39) (Note 50(i)) (Note 50(ii))
Notes RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
As at 1 January 2020 227,150 — — — — 116,775 343,925 266,149 610,074
Total comprehensive income for the year — — — — — 1,127 1,127 7,972 9,099
Transfer to statutory reserve — — 2,771 — — (2,771) — — —
Capital injections from shareholder 159,430 — — — — — 159,430 — 159,430
Capital injections from non-controlling
shareholders of subsidiaries — — — — — — — 321 321
Acquisition of subsidiaries 43 — — — — 399,628 — 399,628 — 399,628
Step-acquisition of a subsidiary 44 — — — — 2,303 — 2,303 (6,953) (4,650)
Final dividend paid 17 — — — — — (29,970) (29,970) — (29,970)
As at 31 December 2020 and
1 January 2021 386,580 — 2,771 — 401,931 85,161 876,443 267,489 1,143,932
Total comprehensive income for the year — — — — — 56,641 56,641 7,076 63,717
Transfer to statutory reserve — — 2,815 — — (2,815) — — —
Capital injections from shareholder 64,000 — — — — — 64,000 — 64,000
Acquisition of subsidiaries 43 — — — — — — — 7,328 7,328
Deregistration of a subsidiary 45 — — — — — — — (321) (321)
1 January 2022 450,580 — 5,586 — 401,931 100,752 958,849 281,572 1,240,421
Profit for the year — — — — — 52,396 52,396 (3,433) 48,963
Other comprehensive income for the year — — — 3,408 — — 3,408 — 3,408
Total comprehensive income for the year — — — 3,408 — 52,396 55,804 (3,433) 52,371
Issue of perpetual debts — 360,000 — — — — 360,000 — 360,000
shareholders of subsidiaries — — — — — — — 20,047 20,047
Acquisition of subsidiaries 43 — — — — — — — 122,597 122,597
Step-acquisition of subsidiaries 44 — — — — 8,502 — 8,502 (282,741) (274,239)
Deemed partial disposal of subsidiaries 46 — — — — (901) — (901) 300,901 300,000
1 January 2023 450,580 360,000 5,586 3,408 409,532 105,851 1,334,957 438,943 1,773,900
Profit for the period — — — — — (5,492) (5,492) 13,328 7,836
Other comprehensive income for the period — — — 1,342 — — 1,342 — 1,342
Total comprehensive income for the period — — — 1,342 — (5,492) (4,150) 13,328 9,178
Issue of perpetual debts — 100,000 — — — — 100,000 — 100,000
shareholders of subsidiaries — — — — — — — 7,296 7,296
As at 31 March 2023 450,580 460,000 5,586 4,750 409,532 100,359 1,430,807 459,567 1,890,374
At 31 December 2021 and 1 January 2022 450,580 — 5,586 — 401,931 100,752 958,849 281,572 1,240,421
Profit for the period — — — — — 2,146 2,146 10,821 12,967
As at 31 March 2022 (unaudited) 450,580 — 5,586 — 401,931 102,898 960,995 292,393 1,253,388
– IIB-7 –
CONSOLIDATED STATEMENT OF CASH FLOWS
Three months ended

2020 2021 2022 2022 2023
(Unaudited)
Operating activities
Adjustments for:
Depreciation of property, plant and equipment 125,941 339,912 444,561 86,451 125,592
Depreciation of right-of-use assets 14,210 17,424 23,730 5,933 5,655
Amortisation of intangible assets 34 8,662 8,975 2,244 2,478
Impairment loss on property, plant and
equipment 6,406 — — — —
Impairment losses on trade and other receivables
under expected credit loss model — 1,606 654 — —
Amortisation of deferred income — (2) (21) — (5)
Finance income (945) (1,358) (2,163) (238) (182)
Finance cost 173,163 335,802 397,723 83,109 92,160
Gain on deregistration of a subsidiary — (1,606) — — —
Gain on bargain purchase of subsidiaries (15,480) — (5,186) — —
Operating cash flows before movements in working
capital 310,815 772,761 925,782 193,156 235,698
Increase in inventories — — (15,391) (26,206) (26,243)
Decrease (increase) in trade and bills receivables 71,633 569,558 (133,404) (184,722) (139,174)
Decrease (increase) in deposits, prepayments and
other receivables 1,232,336 (120,686) 546,504 (123,173) 10,744
(Decrease) increase in trade and bills payables (69,602) (25,543) (482,801) 255,467 8,474
Increase (decrease) in construction payables 33,343 (29,556) 64,322 (199,440) (24,208)
Increase (decrease) in contract liabilities — — 13,071 3,102 (25,887)
(Decrease) increase in other payable and accruals (456,304) (182,452) (45,197) 426,769 (45,200)
Increase (decrease) in non-current liabilities 19,073 (787) (826) (18,286) 41
Net cash generated from (used in) operations 1,141,294 983,295 872,060 326,667 (5,755)
Income tax paid (9,516) (8,436) (12,780) (5,424) (1,782)
Net cash generated from (used in) operating
activities 1,131,778 974,859 859,280 321,243 (7,537)
Investing activities
Purchase of property, plant and equipment and
prepayments for property, plant and equipment (1,043,989) (295,185) (2,084,208) (1,706,629) (148,995)
Purchase of right-of-use assets (7,109) (3,010) (14,282) — —
Purchase of intangible assets (41) (627) (6,687) — —
Receipt from disposal of intangible assets 33 — — — —
Purchase of equity instruments at FVTOCI (3,557) (3,548) (40,000) — (40,000)
Net cash outflow on acquisition of subsidiaries (641) (2,062) (171,325) — —
Cash outflow on step-acquisition of subsidiaries (4,650) — (274,239) — —
Cash inflow on deemed partial disposal of
subsidiaries — — 300,000 — —
Interest received 945 1,358 2,163 238 182
Net cash used in investing activities (1,059,009) (303,074) (2,288,578) (1,706,391) (188,813)
– IIB-8 –
Three months ended

2020 2021 2022 2022 2023
(Unaudited)
Financing activities
Net (repayment) drawdown of other borrowings (426,095) (1,557,943) (19,220) (78,043) 2,596
Net drawdown of bank borrowings 107,918 837,056 800,703 3,166,757 415,609
Borrowing (repayment) from a related party 250,180 250,791 1,047,140 (1,357,791) (339,590)
Receipt of deferred government grants — 529 — — —
shareholders of subsidiaries 321 — 20,047 — 7,296
Capital injections from shareholder 159,430 64,000 — — —
Dividend paid (29,970) (38,235) (47,297) — —
Payment of lease liabilities (1,598) (6,591) (90,099) (56,170) (3,676)
Interest paid (166,127) (326,881) (388,306) (80,755) (89,769)
Issue of perpetual debts — — 360,000 — 100,000
Net cash (used in) generated from financing
activities (105,941) (777,274) 1,682,968 1,593,998 92,466
Net (decrease) increase in cash and
cash equivalents (33,172) (105,489) 253,670 208,850 (103,884)
period 230,485 197,313 91,824 91,824 345,494
Cash and cash equivalents at end
of year/period 197,313 91,824 345,494 300,674 241,610
Analysis of cash and cash equivalents:
Bank balances 197,313 91,824 345,494 300,674 241,610
– IIB-9 –
NOTES TO THE HISTORICAL FINANCIAL INFORMATION

SPIC Heilongjiang Power Co., Ltd.* (國家電投集團黑龍江電力有限公司) (formerly known as SPIC Heilongjiang Lvtuo
New Energy Co., Ltd.* (國家電投集團黑龍江綠拓新能源有限公司)) (the ‘‘Target Company’’) is a limited liability company
established in the People’s Republic of China (the ‘‘PRC’’) on 4 July 2016. The registered office and principal place of business is
located Building 13, 1616 Chuangxin Road, Songbei District, Harbin City, Heilongjiang Province, the PRC.
The Target Company and its subsidiaries (together, the ‘‘Target Group’) are principally engaged in generation and sales of
electricity in the PRC, including investment, development, operation and management of wind power, photovoltaic power and
biomass plants. The particulars of the subsidiaries are set out in Note 51.
The controlling party of the Target Company is State Power Investment Corporation Limited* (國家電力投資集團有限公
司) (‘‘SPIC’’).
The Historical Financial Information is presented in RMB and all values are rounded to nearest thousand (RMB’000), which
is also the functional currency of the Target Company and its subsidiaries.
2. BASIS OF PREPARATION OF HISTORICAL FINANCIAL INFORMATION
The Historical Financial Information has been prepared based on the accounting policies set out in Note 4 which conform
with the Hong Kong Financial Reporting Standards (‘‘HKFRSs’’).
As at 31 December 2022 and 31 March 2023, the Target Group’s current liabilities exceeded their current assets by
approximately RMB463,359,000 and RMB372,027,000 respectively. Taking into account the borrowing facilities available to the
Target Group, the sole director of the Target Company has, at the time of approving the Historical Financial Information, a
reasonable expectation that the Target Group has adequate resources to meet its liabilities as and when they fall due and to
continue in operational existence for the foreseeable future. Thus the Target Group continues to adopt the going concern basis of
accounting in preparing its Historical Financial Information.
3. APPLICATION OF NEW AND AMENDMENTS TO HKFRSs
For the purpose of preparing the Historical Financial Information for the Relevant Periods, the Target Group has
consistently applied the accounting policies which conform with HKFRSs, which are effective for the accounting period beginning
on 1 January 2023 throughout the Relevant Periods.
New and amendments to HKFRSs in issue but not yet effective
The Target Group has not early applied the following new and amendments to HKFRSs that have been issued but are
not yet effective:
Amendments to HKAS 1 Non-current liabilities with Covenants1

Amendments to HKAS 1 Classification of Liabilities as Current or Non-current and related amendments to
Hong Kong Interpretation 5 (2020)1
Amendments to HKFRS 10 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture2
and HKAS 28
1
2
Effective for annual periods beginning on or after a date to be determined
The sole director of the Target Company anticipates that the application of all other new and amendments to
HKFRSs will have no material impact on the Target Group’s consolidated financial statements in the foreseeable future.
4. SIGNIFICANT ACCOUNTING POLICIES
Statement of compliance
The Historical Financial Information has been prepared in accordance with HKFRSs issued by the Hong Kong
Institute of Certified Public Accountants (‘‘HKICPA’’). In addition, the Historical Financial Information include applicable
disclosures required by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the
‘‘Listing Rules’’) and by the Hong Kong Companies Ordinance.
The Stub Period Comparative Financial Information has been prepared in accordance with the same basis of
preparation and presentation adopted in respect of the Historical Financial Information.
* For identification purposes only
– IIB-10 –
Basis of preparation
The Historical Financial Information has been prepared on the historical cost basis except for certain financial
instruments that are measured at fair value at the end of each reporting period, as explained in the accounting policies set
out below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price is directly observable or estimated
using another valuation technique. In estimating the fair value of an asset or a liability, the Target Group takes into account
the characteristics of the asset or liability if market participants would take those characteristics into account when pricing
the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these Historical
Financial Information is determined on such a basis, except for share-based payment transactions that are within the scope
of HKFRS 2 Share-based Payment, leasing transactions that are accounted for in accordance with HKFRS 16 Leases, and
measurements that have some similarities to fair value but are not fair value, such as net realisable value in HKAS 2
Inventories or value in use in HKAS 36 Impairment of Assets.
For financial instruments which are transacted at fair value and a valuation technique that unobservable inputs are to
be used to measure fair value in subsequent periods, the valuation technique is calibrated so that at initial recognition the
results of the valuation technique equals the transaction price.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on
the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair
value measurement in its entirety, which are described as follows:
. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date;
. Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset
or liability, either directly or indirectly; and
. Level 3 inputs are unobservable inputs for the asset or liability.
The principal accounting policies are set out below.
Basis of consolidation
The Historical Financial Information incorporate the financial statements of the Target Company and entities
controlled by the Target Company and its subsidiaries. Control is achieved when the Target Company:
. has power over the investee;
. is exposed, or has rights, to variable returns from its involvement with the investee; and
. has the ability to use its power to affect its returns.
The Target Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control listed above.
Consolidation of a subsidiary begins when the Target Group obtains control over the subsidiary and ceases when the
Target Group loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of
during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date
the Target Group gains control until the date when the Target Group ceases to control the subsidiary.
Profit or loss and each item of other comprehensive income are attributed to the owners of the Target Company and
to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Target
Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in
line with the Target Group’s accounting policies.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between
members of the Target Group are eliminated in full on consolidation.
Non-controlling interests in subsidiaries are presented separately from the Target Group’s equity therein, which
represent present ownership interests entitling their holders to a proportionate share of net assets of the relevant subsidiaries
upon liquidation.
– IIB-11 –
Changes in the Target Group’s interests in existing subsidiaries
Changes in the Target Group’s interests in subsidiaries that do not result in the Target Group losing control over the
subsidiaries are accounted for as equity transactions. The carrying amounts of the Target Group’s relevant components of
equity and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries,
including re-attribution of relevant reserves between the Target Group and the non-controlling interests according to the
Target Group’s and the non-controlling interests’ proportionate interests.
Any difference between the amount by which the non-controlling interests are adjusted, and the fair value of the
consideration paid or received is recognised directly in equity and attributed to owners of the Target Company.
When the Target Group loses control of a subsidiary, the assets and liabilities of that subsidiary and non-controlling
interests (if any) are derecognised. A gain or loss is recognised in profit or loss and is calculated as the difference between
(i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the
carrying amount of the assets (including goodwill), and liabilities of the subsidiary attributable to the owners of the Target
Company. All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for
as if the Target Group had directly disposed of the related assets or liabilities of the subsidiary (i.e., reclassified to profit or
loss or transferred to another category of equity as specified/permitted by applicable HKFRSs). The fair value of any
investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial
recognition for subsequent accounting under HKFRS 9 Financial Instruments or, when applicable, the cost on initial
recognition of an investment in an associate or a joint venture.
Business combinations
A business is an integrated set of activities and assets which includes an input and a substantive process that together
significantly contribute to the ability to create outputs. The acquired processes are considered substantive if they are critical
to the ability to continue producing outputs, including an organised workforce with the necessary skills, knowledge, or
experience to perform the related processes or they significantly contribute to the ability to continue producing outputs and
are considered unique or scarce or cannot be replaced without significant cost, effort, or delay in the ability to continue
producing outputs.
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a
business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the
assets transferred by the Target Group, liabilities incurred by the Target Group to the former owners of the acquiree and the
equity interests issued by the Target Group in exchange for control of the acquiree. Acquisition-related costs are generally
recognised in profit or loss as incurred.
For business combinations in which the acquisition date is on or after 1 January 2022, the identifiable assets
acquired and liabilities assumed must meet the definitions of an asset and a liability in the Conceptual Framework for
Financial Reporting 2018 issued in June 2018 (the ‘‘Conceptual Framework’’) except for transactions and events within the
scope of HKAS 37 or HK(IFRIC)-Int 21, in which the Target Group applies HKAS 37 or HK(IFRIC)- Int 21 instead of the
Conceptual Framework to identify the liabilities it has assumed in a business combination. Contingent assets are not
recognised.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value,
except that:
. deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are
recognised and measured in accordance with HKAS 12 Income Taxes and HKAS 19 Employee Benefits
respectively;
. liabilities or equity instruments related to share-based payment arrangements of the acquire or share-based
payment arrangements of the Target Group entered into to replace share-based payment arrangements of the
acquire are measured in accordance with HKFRS 2 at the acquisition date (see the accounting policy below);
. assets (or disposal groups) that are classified as held for sale in accordance with HKFRS 5 Non-current Assets
Held for Sale and Discontinued Operations are measured in accordance with that standard; and
. lease liabilities are recognised and measured at the present value of the remaining lease payments (as defined
in HKFRS 16) as if the acquired leases were new leases at the acquisition date, except for leases for which (a)
the lease term ends within 12 months of the acquisition date; or (b) the underlying asset is of low value.
Right-of-use assets are recognised and measured at the same amount as the relevant lease liabilities, adjusted
to reflect favourable or unfavourable terms of the lease when compared with market terms.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling
interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the
net amount of the identifiable assets acquired and the liabilities assumed as at acquisition date. If, after re-assessment, the
– IIB-12 –
net amount of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the
amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the
acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase gain.
Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the
relevant subsidiary’s net assets in the event of liquidation are initially measured at the non-controlling interests’
proportionate share of the recognised amounts of the acquiree’s identifiable net assets or at fair value.
When the consideration transferred by the Target Group in a business combination includes a contingent
consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of
the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that
qualify as measurement period adjustments are adjusted retrospectively. Measurement period adjustments are adjustments
that arise from additional information obtained during the ‘‘measurement period’’ (which cannot exceed one year from the
acquisition date) about facts and circumstances that existed at the acquisition date.
The subsequent accounting for the contingent consideration that do not qualify as measurement period adjustments
depends on how the contingent consideration is classified. Contingent consideration that is classified as equity is not
remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent
consideration that is classified as an asset or a liability is remeasured to fair value at subsequent reporting dates, with the
corresponding gain or loss being recognised in profit or loss.
When a business combination is achieved in stages, the Target Group’s previously held equity interest in the acquiree
is remeasured to fair value at the acquisition date (i.e., the date when the Target Group obtains control), and the resulting
gain or loss, if any, is recognised in profit or loss or other comprehensive income, as appropriate. Amounts arising from
interests in the acquiree prior to the acquisition date that have previously been recognised in other comprehensive income
and measured under HKFRS 9 would be accounted for on the same basis as would be required if the Target Group had
disposed directly of the previously held equity interest.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the
combination occurs, the Target Group reports provisional amounts for the items for which the accounting is incomplete.
Those provisional amounts are adjusted retrospectively during the measurement period (see above), and additional assets or
liabilities are recognised, to reflect new information obtained about facts and circumstances that existed at the acquisition
date that, if known, would have affected the amounts recognised at that date.
Investments in subsidiaries
Investments in subsidiaries are stated at cost less any identified impairment loss on the statement of financial
position of the Target Company.
Revenue from contracts with customers
The Target Group recognises revenue from sales of electricity to regional and provincial power grid companies and
provision of services.
The Target Group recognises revenue when (or as) a performance obligation is satisfied, i.e. when ‘‘control’’ of the
A performance obligation represents a good or service (or a bundle of goods or services) that is distinct or a series of
distinct goods or services that are substantially the same.
satisfaction of the relevant performance obligation if one of the following criteria is met:
. the Target Group’s performance creates or enhances an asset that the customer controls as the Target Group
performs; or
. the Target Group’s performance does not create an asset with an alternative use to the Target Group and the
A contract asset represents the Target Group’s right to consideration in exchange for goods or services that the
Target Group has transferred to a customer that is not yet unconditional. It is assessed for impairment in accordance with
HKFRS 9. In contrast, a receivable represents the Target Group’s unconditional right to consideration, i.e., only the passage
of time is required before payment of that consideration is due.
– IIB-13 –
A contract liability represents the Target Group’s obligation to transfer goods or services to a customer for which the
Target Group has received consideration (or an amount of consideration is due) from the customer.
A contract asset and a contract liability relating to the same contract are accounted for and presented on a net basis.
(i) Sales of electricity to regional and provincial power grid company
(ii) Provision of services
Services fee income are recognised in accordance with the terms of underlying agreement when relevant
services are rendered.
Leases
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration.
For contracts entered into or modified on or after the date of initial application of HKFRS 16 or arising from
business combinations, the Target Group assesses whether a contract is or contains a lease based on the definition under
HKFRS 16 at inception, modification date or acquisition date, as appropriate. Such contract will not be reassessed unless
the terms and conditions of the contract are subsequently changed.
For a contract that contains a lease component and one or more additional lease or non-lease components, the Target
Group allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of
the lease component and the aggregate stand-alone price of the non-lease components.
The Target Group applies the short-term lease recognition exemption to leases that have a lease term of 12 months or
less from the commencement date and do not contain a purchase option. It also applies the recognition exemption for lease
of low-value assets. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a
straight-line basis or another systematic basis over the lease term.
Right-of-use assets
. an estimate of costs to be incurred by the Target Group in dismantling and removing the underlying assets,
restoring the site on which it is located or restoring the underlying asset to the condition required by the terms
and conditions of the lease.
Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for
any remeasurement of lease liabilities.
Right-of-use assets in which the Target Group is reasonably certain to obtain ownership of the underlying leased
assets at the end of the lease term are depreciated from commencement date to the end of the useful life. Otherwise, right-
of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term.
The Target Group presents right-of-use assets as a separate line item on the consolidated statement of financial
position.
– IIB-14 –
Refundable rental deposits
Refundable rental deposits paid are accounted under HKFRS 9 and initially measured at fair value. Adjustments to
fair value at initial recognition are considered as additional lease payments and included in the cost of right-of-use assets.
Lease liabilities
At the commencement date of a lease, the Target Group recognises and measures the lease liability at the present
value of lease payments that are unpaid at that date. In calculating the present value of lease payments, the Target Group
uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily
determinable.
. variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the
commencement date;
. the exercise price of a purchase option if the Target Group is reasonably certain to exercise the option; and
. payments of penalties for terminating a lease, if the lease term reflects the Target Group exercising an option
to terminate the lease.
The Target Group remeasures lease liabilities (and makes a corresponding adjustment to the related right-of-use
assets) whenever:
. the lease term has changed or there is a change in the assessment of exercise of a purchase option, in which
case the related lease liability is remeasured by discounting the revised lease payments using a revised
discount rate at the date of reassessment.
. the lease payments change due to changes in market rental rates following a market rent review/expected
payment under a guaranteed residual value, in which cases the related lease liability is remeasured by
discounting the revised lease payments using the initial discount rate.
The Target Group presents lease liabilities as a separate line item on the consolidated statement of financial position.
Government grants
Government grants are not recognised until there is reasonable assurance that the Target Group will comply with the
conditions attaching to them and that the grants will be received.
Government grants are recognised in profit or loss on a systematic basis over the periods in which the Target Group
recognises as expenses the related costs for which the grants are intended to compensate. Specifically, government grants
whose primary condition is that the Target Group should purchase, construct or otherwise acquire non-current assets are
recognised as deferred income in the consolidated statement of financial position and transferred to profit or loss on a
systematic and rational basis over the useful lives of the related assets.
Government grants related to income that are receivable as compensation for expenses or losses already incurred or
for the purpose of giving immediate financial support to the Target Group with no future related costs are recognised in
profit or loss in the period in which they become receivable. Such grants are presented under ‘‘other gains and (losses),
net’’.
Cash and cash equivalents
Cash and cash equivalents presented on the consolidated statement of financial position include:
(a) cash, which comprises of cash on hand and demand deposits, excluding bank balances that are subject to
regulatory restrictions that result in such balances no longer meeting the definition of cash; and
(b) cash equivalents, which comprises of short-term (generally with original maturity of three months or less),
highly liquid investments that are readily convertible to a known amount of cash and which are subject to an
insignificant risk of changes in value. Cash equivalents are held for the purpose of meeting short-term cash
commitments rather than for investment or other purposes.
– IIB-15 –
For the purposes of the consolidated statement of cash flows, cash and cash equivalents consist of cash and cash
equivalents as defined above, net of outstanding bank overdrafts which are repayable on demand and form an integral part
of the Target Group’s cash management. Such overdrafts are presented as short-term borrowings in the consolidated
statement of financial position.
Foreign currencies
In preparing the financial statements of each individual group entity, transactions in currencies other than the
functional currency of that entity (foreign currencies) are recognised at the rates of exchanges prevailing on the dates of the
transactions. At the end of the reporting period, monetary items denominated in foreign currencies are retranslated at the
rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are
retranslated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured
in terms of historical cost in a foreign currency are not retranslated.
Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are
recognised in profit or loss in the period in which they arise.
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of
those assets until such time as the assets are substantially ready for their intended use or sale.
Any specific borrowing that remain outstanding after the related asset is ready for its intended use or sale is included
in the general borrowing pool for calculation of capitalisation rate on general borrowings. Investment income earned on the
temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing
costs eligible for capitalisation.
Employee benefits
Retirement benefit costs
Payments to defined contribution retirement benefit plans are recognised as an expense when employees have
rendered service entitling them to the contributions.
As stipulated by the rules and regulations of the People’s Republic of China (the ‘‘PRC’’), the Target Company and
its subsidiaries registered in the PRC are required to contribute to a state-sponsored retirement plan for all its PRC
employees at certain percentages of the basic salaries predetermined by the local governments. The state-sponsored
retirement plan is responsible for the entire retirement benefit obligations payable to retired employees and the Target
Group has no further obligations for the actual retirement benefit payments or other post-retirement benefits beyond the
annual contribution.
The costs of employee retirement benefits are recognised as expenses in profit or loss in the period in which they are
incurred.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax because
of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Target
Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of
the reporting period.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
Historical Financial Information and the corresponding tax bases used in the computation of taxable profit. Deferred tax
liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all
deductible temporary differences to the extent that it is probable that taxable profits will be available against which those
deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary
difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction
that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the
temporary difference arises from the initial recognition of goodwill.
– IIB-16 –
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries,
except where the Target Group is able to control the reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary
differences associated with such investments and interests are only recognised to the extent that it is probable that there will
be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to
reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset is realised, based on tax rate (and tax laws) that have been enacted or substantively enacted
by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the
manner in which the Target Group expects, at the end of the reporting period, to recover or settle the carrying amount of its
assets and liabilities.
For the purposes of measuring deferred tax for leasing transactions in which the Target Group recognises the right-
of-use assets and the related lease liabilities, the Target Group first determines whether the tax deductions are attributable
to the right-of-use assets or the lease liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to income taxes levied to the same taxable entity by the same taxation
authority.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in
other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other
comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting
for a business combination, the tax effect is included in the accounting for the business combination.
Property, plant and equipment
Property, plant and equipment, other than construction in progress, are stated in the consolidated statement of
financial position at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes any costs
directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the
manner intended by management and, for qualifying assets, borrowing costs capitalised in accordance with the Target
Group’s accounting policy. Depreciation of these assets commences when the assets are ready for their intended use.
item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the period in which
they are incurred.
values.
than its estimated recoverable amount. Such impairment losses are recognised in profit or loss.
Gain or losses on disposals are determined by comparing the net sales proceeds with the carrying amount of the
relevant assets and are recognised in profit or loss.
Construction in progress
Construction in progress represents property, plant and equipment under construction and pending installation and is
stated at cost less accumulated impairment losses, if any. Cost includes the costs of construction of buildings, the costs of
plant and machinery, direct labour costs and overheads and, for qualifying assets, borrowing costs capitalised in accordance
with the Target Group’s accounting policy. No provision for depreciation is made on construction in progress until such
time as the relevant assets are completed and are available for the intended use. When the assets concerned are brought into
use, the costs are transferred to the appropriate categories of property, plant and equipment and depreciated in accordance
with the policy as stated above.
– IIB-17 –
Intangible assets
Intangible assets acquired separately
Intangible assets with finite useful lives that are acquired separately are carried at costs less accumulated
amortisation and any accumulated impairment losses. Amortisation for intangible assets with finite useful lives is
recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are
reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a
prospective basis.
Intangible assets acquired in a business combination
Intangible assets acquired in a business combination are recognised separately from goodwill and are initially
recognised at their fair values at the acquisition date (which is regarded as their costs).
Subsequent to initial recognition, intangible assets acquired in a business combination with finite useful lives are
reported at costs less accumulated amortisation and any accumulated impairment losses, being their fair values at the date
of the revaluation less subsequent accumulated amortisation and any accumulated impairment losses, on the same basis as
intangible assets that are acquired separately.
Impairment losses on property, plant and equipment, right-of-use assets and intangible assets other than goodwill
At the end of the reporting period, the Target Group reviews the carrying amounts of its property, plant and
equipment, right-of-use assets, and intangible assets with finite useful lives to determine whether there is any indication that
these assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the relevant asset is
estimated in order to determine the extent of the impairment loss (if any).
The recoverable amount of property, plant and equipment, right-of-use assets and intangible assets are estimated
individually. When it is not possible to estimate the recoverable amount individually, the Target Group estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
In testing a cash-generating unit for impairment, corporate assets are allocated to the relevant cash-generating unit
when a reasonable and consistent basis of allocation can be established, or otherwise they are allocated to the smallest
group of cash generating units for which a reasonable and consistent allocation basis can be established. The recoverable
amount is determined for the cash-generating unit or group of cash-generating units to which the corporate asset belongs,
and is compared with the carrying amount of the relevant cash-generating unit or group of cash-generating units.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset (or a cash-generating unit) for which the
estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or a cash-generating unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or a cash-generating unit) is reduced to its recoverable amount. For corporate assets or portion
of corporate assets which cannot be allocated on a reasonable and consistent basis to a cash-generating unit, the Target
Group compares the carrying amount of a group of cash-generating units, including the carrying amounts of the corporate
assets or portion of corporate assets allocated to that group of cash-generating units, with the recoverable amount of the
group of cash-generating units. In allocating the impairment loss, the impairment loss is allocated first to reduce the
carrying amount of any goodwill (if applicable) and then to the other assets on a pro-rata basis based on the carrying
amount of each asset in the unit or the group of cash-generating units. The carrying amount of an asset is not reduced below
the highest of its fair value less costs of disposal (if measurable), its value in use (if determinable) and zero. The amount of
the impairment loss that would otherwise have been allocated to the asset is allocated pro rata to the other assets of the unit
or the group of cash-generating units. An impairment loss is recognised immediately in profit or loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit or a group
of cash-generating units) is increased to the revised estimate of its recoverable amount, but so that the increased carrying
amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for
the asset (or a cash-generating unit or a group of cash-generating units) in prior years. A reversal of an impairment loss is
recognised immediately in profit or loss.
– IIB-18 –
Inventories
Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on a weighted
average method. Net realisable value represents the estimated selling price for inventories less all estimated costs of
completion and costs necessary to make the sale. Cost necessary to make the sale include incremental costs directly
attributable to the sale and non-incremental costs which the Target Group must incur to make the sale.
Provisions
Provisions are recognised when the Target Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that the Target Group will be required to settle that obligation, and a reliable estimate can be made of
the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.
When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the
present value of those cash flows (where the effect of the time value of money is material).
Financial instruments
Financial assets and financial liabilities are recognised when a group entity becomes a party to the contractual
provisions of the instrument. All regular way purchases or sales of financial assets are recognised and derecognised on a
trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets
within the time frame established by regulation or convention in the market place.
Financial assets and financial liabilities are initially measured at fair value except for trade receivables arising from
contracts with customers which are initially measured in accordance with HKFRS 15. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets or financial
liabilities at fair value through profit or loss (‘‘FVTPL’’)) are added to or deducted from the fair value of the financial
assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition
of financial assets or financial liabilities at FVTPL are recognised immediately in profit or loss.
The effective interest method is a method of calculating the amortised cost of a financial asset or financial liability
and of allocating interest income and interest expense over the Relevant Periods. The effective interest rate is the rate that
exactly discounts estimated future cash receipts and payments (including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of
the financial asset or financial liability, or, where appropriate, a shorter period, to the net carrying amount on initial
recognition.
Financial assets
. the financial asset is held within a business model whose objective is to collect contractual cash flows; and
. the contractual terms give rise on specified dates to cash flows that are solely payments of principal and
. the financial asset is held within a business model whose objective is achieved by both selling and collecting
contractual cash flows; and
. the contractual terms give rise on specified dates to cash flows that are solely payments of principal and
All other financial assets are subsequently measured at FVTPL, except that at initial recognition of a financial asset
the Target Group may irrevocably elect to present subsequent changes in fair value of an equity investment in other
comprehensive income if that equity investment is neither held for trading nor contingent consideration recognised by an
acquirer in a business combination to which HKFRS 3 Business Combinations applies.
In addition, the Target Group may irrevocably designate a financial asset that are required to be measured at the
amortised cost or FVTOCI as measured at FVTPL if doing so eliminates or significantly reduces an accounting mismatch.
– IIB-19 –
(i) Amortised cost and interest income
amortised cost and debt instruments subsequently measured at FVTOCI. For financial instruments other than
purchased or originated credit-impaired financial assets, interest income is calculated by applying the effective
interest rate to the gross carrying amount of a financial asset, except for financial assets that have subsequently
become credit-impaired. For financial assets that have subsequently become credit-impaired, interest income is
recognised by applying the effective interest rate to the amortised cost of the financial asset from the next reporting
period. If the credit risk on the credit-impaired financial instrument improves so that the financial asset is no longer
credit-impaired, interest income is recognised by applying the effective interest rate to the gross carrying amount of
the financial asset from the beginning of the reporting period following the determination that the asset is no longer
credit-impaired.
(ii) Equity instruments designated as at FVTOCI
Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses
arising from changes in fair value recognised in other comprehensive income and accumulated in the FVTOCI
reserve, and are not subject to impairment assessment. The cumulative gain or loss will not be reclassified to profit
or loss on disposal of the equity investments, and will be transferred to retained earnings.
Dividends from these investments in equity instruments are recognised in profit or loss when the Target
Group’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the
cost of the investment. Dividends are included in ‘‘other income’’ in the consolidated statement of profit or loss and
other comprehensive income.
The Target Group performs impairment assessment under expected credit loss (‘‘ECL’’) model on financial assets
(including trade and bills receivables, deposits and other receivables and cash and cash equivalents) which are subject to
impairment assessment under HKFRS 9. The amount of ECL is updated at each reporting date to reflect changes in credit
risk since initial recognition.
relevant instrument. In contrast, 12-month ECL (‘‘12m ECL’’) represents the portion of lifetime ECL that is expected to
result from default events that are possible within 12 months after the reporting date. Assessments are done based on the
Target Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic
conditions and an assessment of both the current conditions at the reporting date as well as the forecast of future conditions.
The Target Group always recognises lifetime ECL for trade receivable without significant financing component.
For all other financial instruments, the Target Group measures the loss allowance equal to 12m ECL, unless there
has been a significant increase in credit risk since initial recognition, in which case the Target Group recognises lifetime
ECL. The assessment of whether lifetime ECL should be recognised is based on significant increases in the likelihood or
risk of a default occurring since initial recognition.
(i) Significant increase in credit risk
significantly:
. an actual or expected significant deterioration in the financial instrument’s external (if available) or
. an actual or expected significant deterioration in the operating results of the debtor;
– IIB-20 –

obligations.
(ii) Definition of default
than 90 days past due (except for trade receivables from regional and provincial power grid companies) unless the
Target Group has reasonable and supportable information to demonstrate that a more lagging default criterion is
more appropriate.
(iii) Credit-impaired financial assets
A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated
future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes
observable data about the following events:
(a) significant financial difficulty of the issuer or the borrower;
(b) a breach of contract, such as a default or past due event;
(c) the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial
difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise
consider;
(d) it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation;
(e) the disappearance of an active market for that financial asset because of financial difficulties; or
(f) the purchase or origination of a financial asset at a deep discount that reflects the incurred credit
losses.
(iv) Write-off policy
(v) Measurement and recognition of ECL
The measurement of ECL is a function of the probability of default, loss given default (i.e. the magnitude of
default is based on historical data and forward-looking information. Estimation of ECL reflects an unbiased and
probability-weighted amount that is determined with the respective risks of default occurring as the weights. The
Target Group uses a practical expedient in estimating ECL on trade and bills receivables and contract assets using a
provision matrix taking into consideration historical credit loss experience, adjusted for forward looking information
that is available without undue cost or effort.
Generally, the ECL is the difference between all contractual cash flows that are due to the Target Group in
– IIB-21 –
Lifetime ECL for certain trade and bills receivables is considered on a collective basis taking into
consideration past due information and relevant credit information such as forward-looking macroeconomic
information.
For collective assessment, the Target Group takes into consideration the following characteristics when
formulating the grouping:
. Past-due status;
asset is credit-impaired, in which case interest income is calculated based on amortised cost of the financial asset.
The Target Group recognises an impairment loss or reversal in profit or loss for all financial instruments by
adjusting their carrying amount, with the exception of trade receivable where the corresponding adjustment is
recognised through a loss allowance account.
The Target Group derecognises a financial asset only when the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to
another entity. If the Target Group neither transfers nor retains substantially all the risks and rewards of ownership and
continues to control the transferred asset, the Target Group recognises its retained interest in the asset and an associated
liability for amounts it may have to pay. If the Target Group retains substantially all the risks and rewards of ownership of
a transferred financial asset, the Target Group continues to recognise the financial asset and also recognises a collateralised
borrowing for the proceeds received.
On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount
and the sum of the consideration received and receivable is recognised in profit or loss.
On derecognition of an investment in equity instrument which the Target Group has elected on initial recognition to
measure at FVTOCI, the cumulative gain or loss previously accumulated in the FVTOCI reserve is not reclassified to profit
or loss, but is transferred to retained earnings.
Financial liabilities and equity
Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance
of the contractual arrangements and the definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of
its liabilities. Equity instruments issued by the Target Company are recognised at the proceeds received, net of direct issue
costs.
The perpetual notes and other perpetual instruments issued by the Target Company are recognised as ‘‘Other equity
instruments’’.
All financial liabilities are subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
The Target Group derecognises financial liabilities when, and only when, the Target Group’s obligations are
discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognised
and the consideration paid and payable is recognised in profit or loss.
– IIB-22 –
Offsetting a financial asset and a financial liability
A financial asset and a financial liability are offset and the net amount presented in the consolidated statement of
financial position when, and only when, the Target Group currently has a legally enforceable right to set off the recognised
amounts; and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Related parties
A related party is a person or entity that is related to the Target Group.
(a) A person, or a close member of that person’s family, is related to the Target Group if that person:
(i) has control or joint control of the Target Group;
(ii) has significant influence over the Target Group; or
(iii) is a member of the key management personnel of the Target Group or of a parent of the Target Group.
(b) An entity is related to the Target Group if any of the following conditions applies:
(i) the entity and the Target Group are members of the same group (which means that each parent,
subsidiary and fellow subsidiary is related to the others);
(ii) one entity is an associate or joint venture of the other entity (or an associate or joint venture of a
member of a group of which the other entity is a member);
(iii) both entities are joint ventures of the same third party;
(iv) one entity is a joint venture of a third entity and other entity is an associate of the third entity;
an entity related to the Target Group. If the Target Group is itself such a plan, the sponsoring
employers are also related to the Target Group;
management personnel of the entity (or of a parent of the entity); or
to the Target Group or to the Target Group’s parent.
Close members of the family of a person are those family members who may be expected to influence, or be
influenced by, that person in their dealings with the entity, and include:
(a) that person’s children and spouse or domestic partner;
(b) children of that person’s spouse or domestic partner; and
(c) dependents of that person or that person’s spouse or domestic partner.
5. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the Target Group’s accounting policies, which are described in Note 4, the sole director of the Target
Company is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are
not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other
factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and
future periods if the revision affects both current and future periods.
Critical judgements in applying accounting policies
The following are the critical judgements, apart from those involving estimations (see below), that the sole director
of the Target Company has made in the process of applying the Target Group’s accounting policies and that have the most
significant effect on the amounts recognised in the Historical Financial Information.
– IIB-23 –
Other borrowing versus non-controlling interests’ contribution
During the year 2019, the Target Company (the ‘‘Equity Transferor’’) entered into several share transfer agreements
(the ‘‘Share Transfer Agreements’’) with several parties (the ‘‘Equity Transferee’’) in which the Equity Transferor agreed to
transfer and the Equity Transferee agreed to take certain percentages of the share of the several subsidiaries of the Equity
Transferor. The contract periods of the Share Transfer Agreements range from 20 to 25 years. According to the Share
Transfer Agreements, the Equity Transferee only entitle a fixed amount/percentage of return, range from 8% to 14%, which
was calculated based on the amount invested. In addition, at the end of the contract period, the Equity Transferee has a
right to demand the repayment of the amount invested which will base on the distributable amount of these subsidiaries.
Accordingly, the management of the Target Group considers the amount invested by the Equity Transferee as an other
borrowing which amounting to approximately RMB157,284,000, RMB154,743,000, RMB150,523,000 and RMB153,119,000
for the years ended 31 December 2020, 2021, 2022 and three months ended 31 March 2023 respectively.
Key sources of estimation uncertainty
The key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed
below.
Residual value, depreciation and useful lives of property, plant and equipment
The Target Group depreciates property, plant and equipment over their estimated useful lives after taking into
account of their estimated residual values, using the straight-line method. The estimated useful lives reflect the sole
director’s estimates of the periods that the Target Group intends to derive future economic benefits from the use of the
Target Group’s property, plant and equipment. The residual values reflect the sole director’s estimated amount that the
Target Group would currently obtain from the disposal of the assets, after deducting the estimated costs of disposal, if the
assets were already of the age and in the condition expected at the end of their useful lives.
Impairment of non-financial assets
The Target Group assesses whether there are any indicators of impairment for all non-financial assets (including
property, plant and equipment, right-of-use assets and intangible assets) at the end of each reporting period. Other non-
financial assets are tested for impairment when there are indicators that the carrying amounts may not be recoverable. An
impairment exists when the carrying value of an asset or a cash-generating unit exceeds its recoverable amount, which is
the higher of its fair value less costs of disposal and its value in use. The calculation of the fair value less costs of disposal
is based on available data from binding sales transactions in an arm’s length transaction of similar assets or observable
market prices less incremental costs for disposing of the asset. When value-in-use calculations are undertaken, management
must estimate the expected future cash flows from the asset or cash-generating unit and choose a suitable discount rate in
order to calculate the present value of those cash flows.
Provision of ECL for trade and other receivables
The Target Group uses a provision matrix to calculate ECLs for trade and bills receivables and other receivables.
The provision rates are based on internal credit rating as groupings of various customers that have similar loss patterns.
The information about the ECLs on the Target Group’s trade and bills receivables and other receivables is disclosed
in Notes 26 and 27.
Recognition of current taxes and deferred tax
There were transactions and calculations for which the ultimate tax determination was uncertain during the ordinary
course of business. As detailed in the Target Group’s accounting policies, deferred tax is provided, using the liability
method, on all temporary differences at the end of the reporting period between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes. Where the final tax outcomes of these matters are different from the
amounts that were initially recorded, such differences will impact on the income tax and deferred tax provisions in the
periods in which such determination is made.
Deferred income tax assets relating to certain temporary differences and tax losses are recognised when management
considers to be probable that future taxable profit will be available against which the temporary differences or tax losses
can be utilised. The outcome of their actual utilisation may be different.
6. CAPITAL RISK MANAGEMENT
The Target Group manages its capital to ensure that entities in the Target Group will be able to continue as a going concern
while maximising the return to shareholders through the optimisation of the debt and equity balances. The Target Group’s overall
strategy remains unchanged throughout the Relevant Periods.
– IIB-24 –
The capital structure of the Target Group consists of lease liabilities, bank borrowings, other borrowings, borrowings from a
related party, cash and cash equivalents and equity attributable to owner of the Target Group, comprising issued share capital and
reserves.
The management of the Target Group reviews and manages its capital structure on a regular basis. As part of this review,
the management of the Target Group consider the cost of capital and the risks associated with each class of capital, and will take
appropriate actions to balance its overall capital structure.
(a) Categories of financial instruments
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Financial assets
Financial assets at FVTOCI 3,557 7,105 51,650 93,439
Financial assets at amortised cost
Trade and bills receivables 738,902 169,344 452,486 591,660
973,017 471,569 842,143 879,895
976,574 478,674 893,793 973,334
Financial liabilities at amortised cost
Trade and bills payables 7,243 104,788 8,030 16,504
Other payables and accrued charges 112,619 130,279 82,055 56,375
Bank borrowings 4,179,000 5,016,056 6,259,324 6,674,933
Borrowing from a related party 1,107,000 1,357,791 2,404,931 2,065,341
Other borrowings 1,727,686 169,743 150,523 153,119
Lease liabilities 181,469 198,108 204,987 203,717
Other non-current liabilities 19,073 18,286 17,460 17,501
7,563,086 7,194,491 9,391,072 9,427,044
(b) Financial risk management objectives and policies
The Target Group’s major financial instruments include equity investment at FVTOCI, trade receivables, deposits
and other receivables, cash and cash equivalents, trade and bills payables, construction costs payables, other payables and
accrual charges, bank borrowings, other borrowings, borrowings from a related party, lease liabilities and other non-current
liabilities. Details of these financial instruments are disclosed in respective notes. The risks associated with these financial
instruments include market risk (foreign currency risk, interest rate risk and price risk), credit risk and liquidity risk. The
policies on how to mitigate these risks are set out below. The management manages and monitors these exposures to ensure
appropriate measures are implemented on a timely and effective manner.
Market risk
(i) Foreign currency risk
The Target Group has minimal exposure to foreign currency risk as most of its business transactions, assets and
liabilities are principally denominated in the functional currencies of the group entities. The Target Group currently does
not have a foreign currency hedging policy in respect of foreign currency transactions, assets and liabilities. The Target
Group monitors its foreign currency exposure closely and will consider hedging significant foreign currency exposure
should the need arise. The sole director considers that foreign currency risk of the Target Group for the years ended 31
December 2020, 2021 and 2022 and for the three months ended 31 March 2023 are insignificant and therefore no sensitivity
analysis is presented thereon.
(ii) Interest rate risk
The Target Group’s income and operating cash flows are substantially independent of changes in market interest
rates. The Target Group’s exposure to changes in interest rates is mainly attributable to its variable-rate borrowings, details
of which have been disclosed in Notes 32 to 34. Borrowings carried at floating rates expose the Target Group to cash flow
interest rate risk whereas borrowings carried at fixed rates expose the Target Group to fair value interest rate risk, details of
– IIB-25 –
which have been disclosed in Notes 32 to 34. The Target Group has not used any specific interest rate swap contracts to
hedge its exposure to interest rate risk. The Target Group manages its interest rate exposures by assessing the potential
impact arising from any interest rate movements based on interest rate level and outlook. The Target Group currently does
not use any derivative contract to hedge its exposure to interest rate risk. However, the management will consider hedging
significant interest rate exposure should the need arise.
Sensitivity analysis
The sensitivity analysis below, which indicates interest rate exposure to interest rate risk in relation to bank
borrowings, other borrowings and borrowing from a related party at the end of each reporting period. A 100 basis
points increase or decrease is used, which represents management’s assessment of the possible change in interest
rates.
If interest rates have been 100 basis points higher/lower and all other variables held constant, the Target
Group’s profit for the three months ended 31 March 2023 would decrease/increase by approximately RMB66,249,000
(for the years ended 31 December 2020, 2021 and 2022 would decrease/increase by approximately RMB44,560,000,
RMB50,161,000 and RMB62,093,000 respectively).
(iii) Price risks
The Target Group is exposed to equity price risk through its investments in unquoted equity securities and private
fund measured at FVTOCI. The sensitivity analyses for those unquoted financial assets with fair value measurement
categorised within Level 3 were disclosed in Note 7(c).
Credit risk and impairment assessment
Credit risk refers to the risk that the Target Group’s counterparties default on their contractual obligations resulting
in financial losses to the Target Group. The Target Group’s credit risk exposures are primarily attributable to trade
receivables, other receivables, and cash and cash equivalents. The Target Group does not hold any collateral or other credit
enhancements to cover its credit risks associated with its financial assets.
Trade receivables arising from contract with customers
The Target Group is exposed to significant concentration of credit risk in terms of electricity sales as a majority of
the Target Group’s sales of electricity were made to regional and provincial power grid companies. The Target Group
normally grants credit terms ranged from 30 days to these power grid companies. The Target Group only accepts bills
issued or guaranteed by reputable PRC banks if accounts receivables are settled by bills and therefore the management of
the Target Group considers the credit risk arising from the endorsed or discounted bills is insignificant. The Target Group
normally does not require collaterals from trade debtors. In addition, the Target Group performs impairment assessment
under ECL model upon application of HKFRS 9 on trade receivable individually. Ageing analysis of the Target Group’s
trade receivable is disclosed in Note 26.
Deposits and other receivables
For deposits and other receivables, the management of the Target Group makes periodic individual assessment on the
recoverability of deposits and other receivables based on historical settlement records, past experience and also quantitative
and qualitative information that is reasonable and supportive forward-looking information. The management believes that
there are no significant increase in credit risk of these amounts since initial recognition and the Target Group provided
impairment based on 12m ECL.
The credit risk on cash and cash equivalents is limited because the counterparties are mainly well-established
financial institutions.
The tables below detail the credit risk exposures of the Target Group’s financial assets, which are subject to ECL
assessment.
Gross
carrying
External Internal 12m or amounts
As at 31 December 2020 Notes credit rating credit rating lifetime ECL RMB’000
Trade and bills receivables 26 N/A (Note) Lifetime ECL 738,902
(not credit impaired)
Deposits and other receivables 27 N/A Low risk 12m ECL 36,802
Cash and cash equivalents 28 From AA+ or above N/A 12m ECL 197,313
– IIB-26 –
Gross
carrying
Trade receivables 26 N/A (Note) Lifetime ECL 169,344
Cash and cash equivalents 28 From BBB or above N/A 12m ECL 91,824
Gross
carrying
Cash and cash equivalents 28 From A or above N/A 12m ECL 345,494
Gross
carrying
Cash and cash equivalents 28 From BB+ or above N/A 12m ECL 241,610
Note:
For trade receivables, the Target Group has applied the simplified approach in HKFRS 9 to measure the loss
allowance at lifetime ECL. Except for debtors with significant outstanding balances or credit-impaired, the Target
Group determines the ECL on these items on a collective basis, grouped by past due status.
Liquidity risk
In the management of the liquidity risk, the Target Group monitors and maintains a level of cash and cash
equivalents deemed adequate by the management to finance the Target Group’s operations and mitigate the effects of
fluctuations in cash flows.
The following table details the Target Group’s remaining contractual maturity for its non-derivative financial
liabilities. The table has been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest
date on which the Target Group can be required to pay. The maturity dates for other non-derivative financial liabilities are
based on the agreed repayment dates.
Weighted Total
Average On demand Between Between contractual
effective or less than 1 and 2 2 and 5 Over undiscounted Carrying
interest rate 1 year years years 5 years cash flows amount
% RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
As at 31 December 2020
Trade payables N/A 7,243 — — — 7,243 7,243
Construction payables N/A 228,996 — — — 228,996 228,996
Other payables and accrued charges N/A 112,619 — — — 112,619 112,619
Bank borrowings 4.5% 502,773 424,652 1,236,237 4,548,128 6,711,790 4,179,000
Borrowings from a related party 4.3% 47,712 47,712 1,250,135 — 1,345,559 1,107,000
Other borrowings 6.1% 105,394 659,194 1,119,621 438,742 2,322,951 1,727,686
Lease liabilities 4.9% 3,794 3,557 17,621 321,612 346,584 181,469
Other non-current liabilities N/A 19,073 — — — 19,073 19,073
1,027,604 1,135,115 3,623,614 5,308,482 11,094,815 7,563,086
– IIB-27 –
Weighted Total
Average On demand Between Between contractual
effective or less than 1 and 2 2 and 5 Over undiscounted Carrying
interest rate 1 year years years 5 years cash flows amount
Trade and bills payables N/A 104,788 — — — 104,788 104,788
Bank borrowings 4.4% 487,264 540,729 1,665,810 5,072,770 7,766,573 5,016,056
Borrowings from a related party 3.8% 51,189 51,189 1,511,357 — 1,613,735 1,357,791
Other borrowings 9.4% 15,942 15,942 61,386 417,307 510,577 169,743
1,010,745 619,687 3,246,394 5,811,971 10,688,797 7,194,491
Bank borrowings 3.9% 651,576 674,744 2,136,118 5,584,039 9,046,477 6,259,324
Borrowing from a related party 3.5% 586,972 67,171 2,104,365 — 2,758,508 2,404,931
1,636,520 759,490 4,295,481 6,294,140 12,985,631 9,391,072
As at 31 March 2023
Bank borrowings 3.9% 713,532 721,315 2,233,054 5,787,072 9,454,973 6,674,933
Borrowing from a related party 3.5% 575,191 55,340 1,729,282 — 2,359,813 2,065,341
1,644,487 793,935 4,023,716 6,481,547 12,943,685 9,427,044
(c) Financial instruments measured at fair value
Fair value of the Target Group’s financial assets that are measured at fair value on a recurring basis
Some of the Target Group’s financial assets are measured at fair value at the end of each reporting period.
The following Table gives information about how the fair value of these financial assets are determined (in
particular, the valuation techniques and inputs used).
Relationship
of the
As at Valuation Significant significant
31 March As at 31 December Fair value technique unobservable input for
Financial assets Classified as 2023 2022 2021 2020 hierarchy and key input input(s) fair value
RMB‘000 RMB‘000 RMB‘000 RMB‘000
Unlisted equity Financial assets 7,105 7,105 7,105 3,557 Level 3 Net asset value N/A N/A
investment at FVTOCI
in the PRC
Unlisted fund Financial assets 86,334 44,545 — — Level 3 Net asset value N/A N/A
investment at FVTOCI
in the PRC
There are no transfers between fair value hierarchies during the Relevant Periods.
Fair value of financial assets and financial liabilities that are not measured at fair value on a recurring basis
The sole director of the Target Company considers that the carrying amounts of the Target Group’s financial
assets and financial liabilities carried at amortised cost are approximate their fair values.
– IIB-28 –
8. SEGMENT REPORTING
The chief operation decision maker (i.e. the sole director of the Target Company) (the ‘‘CODM’’) reviews the internal
reporting of the Target Company and its subsidiaries in order to assess performance and allocate resources. Management has
determined the operating segments based on these reports.
The CODM assesses the performance of the operating segments based on a measure of profit before tax.
For the three months ended 31 March 2023
Photovoltaic
Wind power power Biomass
electricity electricity electricity Segment total Unallocated Total
Segment revenue
Sales of electricity 30,150 230,675 98,652 359,477 — 359,477
Service income — — 6,827 6,827 — 6,827
30,150 230,675 105,479 366,304 — 366,304
Segment results 12,503 81,255 9,648 103,406 — 103,406
Unallocated income — — — — 2,024 2,024
Unallocated expenses — — — — (3,452) (3,452)
Operating profit (loss) 12,503 81,255 9,648 103,406 (1,428) 101,978
Finance income — 182 — 182 — 182
Finance costs (8,290) (77,192) (6,678) (92,160) — (92,160)
Profit (loss) before tax 4,213 4,245 2,970 11,428 (1,428) 10,000
Income tax expense — (2,164) — (2,164) — (2,164)
Profit (loss) for the period 4,213 2,081 2,970 9,264 (1,428) 7,836
Capital expenditure
Property, plant and equipment 794 2,570 14,692 18,056 — 18,056
Depreciation of property,
plant and equipment 16,487 99,142 9,963 125,592 — 125,592
Depreciation of right-of-use assets 66 5,314 275 5,655 — 5,655
Amortisation of intangible assets — 2,457 21 2,478 — 2,478
Segment assets
Other segment assets 1,920,100 8,131,167 1,145,000 11,196,267 — 11,196,267
Equity instruments at FVTOCI — 93,439 — 93,439 — 93,439
Deferred tax assets — 59,176 4,250 63,426 — 63,426
Other unallocated assets — — — — 29,605 29,605
Total assets 1,920,100 8,283,782 1,149,250 11,353,132 29,605 11,382,737
Segment liabilities
Other segment liabilities (33,516) (426,497) (48,291) (508,304) — (508,304)
Bank borrowings (1,031,424) (5,031,999) (611,510) (6,674,933) — (6,674,933)
Borrowings from a related party — (2,065,341) — (2,065,341) — (2,065,341)
Other borrowings — (153,119) — (153,119) — (153,119)
(1,064,940) (7,676,956) (659,801) (9,401,697) — (9,401,697)
Deferred tax liabilities — (38,561) — (38,561) (3,215) (41,776)
Tax payables — (7,383) (193) (7,576) (954) (8,530)
Other unallocated liabilities — — — — (40,360) (40,360)
Total liabilities (1,064,940) (7,722,900) (659,994) (9,447,834) (44,529) (9,492,363)
– IIB-29 –
For the year ended 31 December 2022
Photovoltaic
Segment revenue
Sales of electricity 97,394 853,956 227,159 1,178,509 — 1,178,509
Service income — 97,864 5,786 103,650 — 103,650
97,394 951,820 232,945 1,282,159 — 1,282,159
Segment results 36,916 487,359 (17,346) 506,929 — 506,929
Operating profit (loss) 36,916 487,359 (17,346) 506,929 (53,860) 453,069
Finance income — 379 — 379 1,784 2,163
Finance costs (26,852) (344,030) (26,260) (397,142) (581) (397,723)
Profit (loss) before tax 10,064 143,708 (43,606) 110,166 (52,657) 57,509
Income tax expense — (8,519) (27) (8,546) — (8,546)
Profit (loss) for the year 10,064 135,189 (43,633) 101,620 (52,657) 48,963
Capital expenditure
Property, plant and equipment 180,200 1,958,247 30,581 2,169,028 — 2,169,028
Depreciation of right-of-use assets 112 21,733 1,885 23,730 — 23,730
Gain on bargain purchase of
subsidiaries — — — — 5,186 5,186
Segment assets
Other segment assets 1,368,620 8,783,317 918,805 11,070,742 — 11,070,742
Deferred tax assets — 58,329 4,250 62,579 — 62,579
Total assets 1,368,620 8,893,296 923,055 11,184,971 89,056 11,274,027
Segment liabilities
Other segment liabilities (222,736) (292,182) (78,566) (593,484) — (593,484)
Bank borrowings (706,955) (4,929,617) (622,752) (6,259,324) — (6,259,324)
(929,691) (7,777,253) (701,318) (9,408,262) — (9,408,262)
Deferred tax liabilities — (39,871) — (39,871) (1,136) (41,007)
Tax payables — (7,157) (307) (7,464) (159) (7,623)
Total liabilities (929,691) (7,824,281) (701,625) (9,455,597) (44,530) (9,500,127)
– IIB-30 –
Photovoltaic
Segment revenue
Sales of electricity — 806,941 — 806,941 — 806,941
Service income — 107,698 — 107,698 — 107,698
— 914,639 — 914,639 — 914,639
Segment results — 414,205 — 414,205 — 414,205
Operating profit — 414,205 — 414,205 (7,042) 407,163
Finance income — 1,358 — 1,358 — 1,358
Finance costs — (335,802) — (335,802) — (335,802)
Profit (loss) before tax — 79,761 — 79,761 (7,042) 72,719
Profit (loss) for the year — 71,157 — 71,157 (7,042) 64,115
Capital expenditure
Property, plant and equipment — 264,215 — 264,215 — 264,215
plant and equipment — 339,912 — 339,912 — 339,912
Depreciation of right-of-use assets — 17,424 — 17,424 — 17,424
Amortisation of intangible assets — 8,662 — 8,662 — 8,662
Gain on deregistration
of a subsidiary — — — — 1,606 1,606
Segment assets
Other segment assets — 8,066,894 — 8,066,894 — 8,066,894
Deferred tax assets — 54,416 — 54,416 — 54,416
Total assets — 8,128,415 — 8,128,415 355,957 8,484,372
Segment liabilities
Other segment liabilities — (312,905) — (312,905) — (312,905)
Bank borrowings — (5,016,056) — (5,016,056) — (5,016,056)
— (6,856,495) — (6,856,495) — (6,856,495)
Deferred tax liabilities — (38,350) — (38,350) — (38,350)
Tax payables — (5,176) — (5,176) — (5,176)
Total liabilities — (6,900,021) — (6,900,021) (343,930) (7,243,951)
– IIB-31 –
Photovoltaic
Segment revenue
Sales of electricity — 401,845 — 401,845 — 401,845
Segment results — 193,906 — 193,906 — 193,906
Operating profit — 193,906 — 193,906 (14,202) 179,704
Finance income — 945 — 945 — 945
Finance costs — (173,163) — (173,163) — (173,163)
Profit (loss) before tax — 21,688 — 21,688 (14,202) 7,486
Income tax (credit) expense — 1,928 — 1,928 (315) 1,613
Profit (loss) for the year — 23,616 — 23,616 (14,517) 9,099
Capital expenditure
Property, plant and equipment — 1,269,674 — 1,269,674 — 1,269,674
Depreciation of right-of-use assets — 14,210 — 14,210 — 14,210
Amortisation of intangible assets — 34 — 34 — 34
Impairment loss on property,
Gain on bargain purchase of
subsidiaries — — — — 15,480 15,480
Segment assets
Other segment assets — 8,669,560 — 8,669,560 — 8,669,560
Deferred tax assets — 50,845 — 50,845 — 50,845
Total assets — 8,723,962 — 8,723,962 29,006 8,752,968
Segment liabilities
Other segment liabilities — (553,957) — (553,957) — (553,957)
Bank borrowings — (4,179,000) — (4,179,000) — (4,179,000)
Other borrowings — (1,727,686) — (1,727,686) — (1,727,686)
— (7,567,643) — (7,567,643) — (7,567,643)
Deferred tax liabilities — (37,083) — (37,083) — (37,083)
Tax payables — (2,704) — (2,704) — (2,704)
Total liabilities — (7,607,430) — (7,607,430) (1,606) (7,609,036)
– IIB-32 –
For the three months ended 31 March 2022 (unaudited)

Photovoltaic
Segment revenue
Sales of electricity 13,907 264,016 12,153 290,076 — 290,076
Segment results 9,537 131,176 788 141,501 — 141,501
Unallocated income — — — — 473 473
Operating profit 9,537 131,176 788 141,501 (42,973) 98,528
Finance income — — — — 238 238
Finance costs (2,953) (74,926) — (77,879) (5,230) (83,109)
Profit before tax 6,584 56,250 788 63,622 (47,965) 15,657
Profit for the year 6,584 53,560 788 60,932 (47,965) 12,967
Capital expenditure
Property, plant and equipment 38,587 1,903,324 6,548 1,948,459 — 1,948,459
Depreciation of right-of-use assets — 5,524 409 5,933 — 5,933
As at 31 December 2020, 31 December 2021, 31 December 2022 and 31 March 2023, substantially all of the Target
Group’s assets, liabilities and capital expenditure were located or utilised in the PRC.
Information about major customers
Revenue from major customers during the Relevant Periods, each of them accounted for 10% or more of the Target Group’s
revenue, are set out below:
Three months ended
2020 2021 2022 2022 2023
(unaudited)
Customer A 128,761 192,035 * * *
Customer B 273,084 504,338 670,406 274,973 260,913
* Contributed less than 10% of the revenue for the year/period
9. REVENUE
Three months ended
2020 2021 2022 2022 2023
(Unaudited)
Disaggregation of revenue from contracts with
customers:
Sales of electricity to regional and provincial
power grid companies (Note a) 401,845 806,941 1,178,509 290,076 359,477
Service income — 107,698 103,650 — 6,827
401,845 914,639 1,282,159 290,076 366,304
Timing of revenue recognition
At a point in time 401,845 806,941 1,178,509 290,076 359,477
Over time — 107,698 103,650 — 6,827
401,845 914,639 1,282,159 290,076 366,304
– IIB-33 –
Note:
(a) Pursuant to the power purchase agreements entered into between the Target Group and the respective regional and
provincial power grid companies, the Target Group’s sales of electricity were made to these power grid companies at
the tariff rates agreed with the respective regional and provincial power grid companies as approved by the relevant
government authorities in the PRC.
10. OTHER INCOME
Three months ended

2020 2021 2022 2022 2023
(Unaudited)
Compensation received — 452 129 — —
Sundry income 421 45 924 275 397
421 497 1,053 275 397
11. STAFF COSTS (INCLUDING DIRECTOR’S EMOLUMENTS)
Three months ended

2020 2021 2022 2022 2023
(Unaudited)
Staff welfare 2,906 5,278 8,535 2,396 3,591
Pension costs — defined contribution plans 3,476 8,731 15,033 4,222 3,847
25,028 49,644 67,039 18,823 25,443
12. OTHER GAINS AND (LOSSES), NET
Three months ended

2020 2021 2022 2022 2023
(Unaudited)
Government subsidies 124 1,833 730 — 1,627
Impairment loss on property, plant and equipment (6,406) — — — —
Gain on sales of material — — 673 — —
Gain on bargain purchase of subsidiaries 15,480 — 5,186 — —
Gain on deregistration of a subsidiary — 1,606 — — —
Sundry income — — 516 — —
9,198 3,439 7,105 — 1,627
Three months ended

2020 2021 2022 2022 2023
(Unaudited)
Lease expenses 1,021 768 246 526 509
Penalties — 320 4,059 — 1
Administrative and selling related expenses 31,822 21,537 16,274 385 2,231
Taxes and surcharges 231 7,803 9,251 1,935 2,246
Others 19,647 14,131 24,270 9,278 6,688
52,755 53,221 63,075 14,368 14,153
– IIB-34 –
14. OPERATING PROFIT
Operating profit has been arrived after charging (crediting) the followings:
Three months ended

2020 2021 2022 2022 2023
(Unaudited)
Depreciation:
— property, plant and equipment 125,941 339,912 444,561 86,451 125,592
— right-of-use assets 14,210 17,424 23,730 5,933 5,655
Impairment loss on property, plant and equipment 6,406 — — — —
Gain on deregistration of a subsidiary — (1,606) — — —
Gain on bargain purchase of subsidiaries (15,480) — (5,186) — —
Three months ended

2020 2021 2022 2022 2023
(Unaudited)
Finance income
Bank interest income 945 1,358 2,163 238 182
Finance costs
Interest expense on
— borrowings 166,127 326,881 388,306 80,755 89,769
— lease liabilities 7,036 8,921 9,417 2,354 2,391
173,163 335,802 397,723 83,109 92,160
16. INCOME TAX (CREDIT) EXPENSE
Three months ended

2020 2021 2022 2022 2023
(Unaudited)
PRC current income tax
Charge for the year/period 351 10,908 10,710 2,690 2,689
Deferred income tax
Credit for the year/period (Note 23) (1,964) (2,304) (2,164) — (525)
(1,613) 8,604 8,546 2,690 2,164
Under the Law of the PRC on Enterprise Income Tax (the ‘‘EIT Law’’) and Implementation Regulation of the EIT Law, the
standard tax rate of the Target Group is 25% except for subsidiaries which would be entitled to reduced Enterprise Income Tax
rates of 0% and 12.5% respectively.
The relevant tax rates for the Target Group range from 0% to 25%.
– IIB-35 –
The income tax (credit) expense for the Relevant Periods can be reconciled to the profit before tax per the consolidated
statements of profit or loss and other comprehensive income as follows:
Three months ended

2020 2021 2022 2022 2023
(Unaudited)
Calculated at the PRC statutory tax rate of 25% 1,871 18,080 14,377 3,915 2,500
Tax effect of income not taxable for tax purpose — — — — (1)
Tax effect of expenses not deductible for tax purpose — 1,258 3,132 — 830
Tax effect on temporary difference not recognised (2,533) (10,474) (21,981) (660) (4,128)
Tax effect of unused tax loss not recognised — 13,484 22,998 — 5,870
Utilisation of tax losses previously not recognised — (353) — — (1,351)
Tax effect of tax concession (951) (13,391) (9,980) (565) (1,556)
Income tax (credit) expense (1,613) 8,604 8,546 2,690 2,164
17. DIVIDENDS
Three months ended

2020 2021 2022 2022 2023
(Unaudited)
Dividends for equity holder of the Target Company
Final dividend declared and paid 29,970 38,235 47,297 — —
The sole director of the Target Company proposes a final dividend of approximately RMB40,942,000 for the year ended 31
December 2022 (2021: RMB47,297,000, 2020: RMB38,235,000 and 2019: RMB29,970,000). This proposed final dividend is not
reflected as a dividend payable as of 31 March 2023 and 31 December 2022, but recorded as a distribution of retained earnings for
the subsequent reporting period.
The sole director of the Target Company does not recommend the payment of dividend for the three months ended 31
March 2022 and 2023.
18. DIRECTOR’S EMOLUMENTS AND FIVE HIGHEST PAID INDIVIDUALS
(a) Director emoluments
Salaries, Employer’s
allowances contribution
and other Discretionary to pension
Director’s fee benefits bonus plans Total
Wang Guoli — 953 534 129 1,616
Wang Guoli — 888 501 157 1,546
Wang Guoli — 718 305 154 1,177
Wang Guoli — 396 293 54 743
(Unaudited)
Wang Guoli — 403 300 39 742
– IIB-36 –
(b) Director’s termination benefits
During the Relevant Periods, there was no termination benefits received by the director.
(c) Consideration provided to third parties for making available director’s services
During the Relevant Periods, no consideration was paid for making available the services of the director.
(d) Information about loans, quasi-loans and other dealings in favour of director, controlled bodies corporate by
and connected entities with such director
During the Relevant Periods, there was no loans, quasi-loans and other dealings entered into by the Target Company
or subsidiaries undertaking of the Target Company, where applicable, in favour of director.
(e) Director’s material interests in transactions, arrangements or contracts
No significant transactions, arrangements and contracts in relation to the Target Group’s business to which the Target
Group was a party and in which the director of the Target Company had a material interest, whether directly or indirectly,
subsisted at the end of the year/period or at any time during the Relevant Periods.
(f) Five highest paid individuals
The five individuals whose emoluments were the highest in the Target Group for the Relevant Periods included 1
director. The emoluments payable to the remaining 4 individuals during the Relevant Periods are as follows:
Three months ended

2020 2021 2022 2022 2023
(Unaudited)
Salaries, allowances and benefits in kind 3,470 4,007 3,190 2,096 2,103
Employer’s contribution to pension plans 418 580 607 157 195
3,888 4,587 3,797 2,253 2,298
Their emoluments fell within the following bands:
Three months ended

2020 2021 2022 2022 2023
(Unaudited)
Nil to RMB500,000 — — — 1 1
RMB500,001 to RMB1,000,000 2 1 3 3 3
RMB1,000,001 to RMB1,500,000 2 3 1 — —
4 4 4 4 4
No emoluments were paid by the Target Group to the five highest paid individuals as an inducement to join or upon joining
the Target Group or as compensation for loss of office.
– IIB-37 –
Buildings and
leasehold Plant and Transportation Electricity Furniture and Other Construction in
improvements equipment facilities equipment fixtures equipment progress Total
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Cost
At 1 January 2020 99,705 3,210,596 1,761 547 39 17,386 353,996 3,684,030
Additions 2,345 3,191 98 700 130 4,122 1,259,088 1,269,674
Acquisitions of subsidiaries 9,088 2,316,305 586 106 69 471 110 2,326,735
Transfer between categories 61,326 433,277 — 202 — (936) (493,869) —
At 31 December 2020 172,464 5,963,369 2,445 1,555 238 21,043 1,119,325 7,280,439
Additions — 35 1,245 359 52 97 262,427 264,215
Acquisitions of subsidiaries — — — — — — 155,198 155,198
Deregistration of a subsidiary — — — — — — (6,727) (6,727)
Transfer between categories 152,516 1,009,651 — — 3,764 — (1,165,931) —
At 31 December 2021 324,980 6,973,055 3,690 1,914 4,054 21,140 364,292 7,693,125
Additions — 64 1,719 1,160 244 128 2,165,713 2,169,028
Acquisitions of subsidiaries 6,836 840,721 8,499 — — — — 856,056
Transfer between categories 318,294 1,928,413 286 — — — (2,246,993) —
At 31 December 2022 650,110 9,742,253 14,194 3,074 4,298 21,268 283,012 10,718,209
Additions — 243 14 35 — 30 17,734 18,056
Transfer between categories — 962 — — — 1,653 (2,615) —
At 31 March 2023 650,110 9,743,458 14,208 3,109 4,298 22,951 298,131 10,736,265
Accumulated depreciation and impairment
At 1 January 2020 8,336 211,911 635 272 10 1,284 — 222,448
Acquisition of subsidiaries 8,043 405,925 441 106 40 471 — 415,026
Charge for the year 12,049 112,789 118 91 8 886 — 125,941
Impairment loss for the year — — — — — — 6,406 6,406
At 31 December 2020 28,428 730,625 1,194 469 58 2,641 6,406 769,821
Charge for the year 11,693 326,421 560 182 33 1,023 — 339,912
Deregistration of a subsidiary — — — — — — (6,406) (6,406)
At 31 December 2021 40,121 1,057,046 1,754 651 91 3,664 — 1,103,327
Acquisition of subsidiaries 13,443 41,369 523 — — 14 — 55,349
Charge for the year 55,654 385,136 1,879 363 459 1,070 — 444,561
At 31 December 2022 109,218 1,483,551 4,156 1,014 550 4,748 — 1,603,237
Charge for the period 6,884 117,388 170 148 76 926 — 125,592
At 31 March 2023 116,102 1,600,939 4,326 1,162 626 5,674 — 1,728,829
Carrying amounts
At 31 March 2023 534,008 8,142,519 9,882 1,947 3,672 17,277 298,131 9,007,436
At 31 December 2022 540,892 8,258,702 10,038 2,060 3,748 16,520 283,012 9,114,972
At 31 December 2021 284,859 5,916,009 1,936 1,263 3,963 17,476 364,292 6,589,798
At 31 December 2020 144,036 5,232,744 1,251 1,086 180 18,402 1,112,919 6,510,618
Notes:
(a) The above items of property, plant and equipment, except for construction in progress, after taking into account the
residual values, are depreciated on a straight-line basis over the following periods:
Buildings and leasehold improvements 20–50 years

Plant and equipment 10–20 years
Transportation facilities 6 years
Electricity equipment 5 years
Furniture and fixtures 5–10 years
Other equipment 5–10 years
(b) Details of pledged property, plant and equipment as at 31 December 2020, 2021, 2022 and 31 March 2023 are set out
in Note 40.
– IIB-38 –
Leasehold lands
RMB’000
Cost
At 1 January 2020 400,013
Additions 10,342
Acquisition of subsidiaries 2,288
Additions 17,319
Additions 101,843
Acquisition of a subsidiary 37,589
Additions 15
At 31 March 2023 569,409
At 1 January 2020 18,042
Charge for the year 14,210
Acquisition of subsidiaries 78
1 January 2022 49,754
Acquisition of a subsidiary 2,599
Charge for the period 5,655
At 31 March 2023 81,738
Carrying amounts
At 31 March 2023 487,671
At 31 December 2022 493,311
At 31 December 2021 380,208
At 31 December 2020 380,313
Three months ended 31 March Year ended 31 December

2020 2021 2022 2022 2023
(Unaudited)
Expense relating to short-term leases 1,021 768 246 526 509
Total cash outflow for leases 2,619 7,359 90,345 56,696 4,185
Additions to right-of-use assets 10,342 17,319 101,843 — 15
21. INTANGIBLE ASSETS

Power Heating
generation generation
Software rights rights Total
RMB’000 RMB’000 RMB’000 RMB’000
Cost
At 1 January 2020 242 — — 242
Additions 41 — — 41
Acquisition of subsidiaries — 133,545 — 133,545
Disposal (33) — — (33)
At 31 December 2020 and 1 January 2021 250 133,545 — 133,795
Additions 1 — 6,686 6,687
Acquisition of subsidiaries 384 — — 384
At 31 December 2022, 1 January 2023 and 31 March 2023 1,262 133,545 6,686 141,493
– IIB-39 –
Power Heating
generation generation
Software rights rights Total
RMB’000 RMB’000 RMB’000 RMB’000
At 1 January 2020 77 — — 77
Charge for the year 34 — — 34
Acquisition of subsidiaries — 714 — 714
At 31 December 2020 and 1 January 2021 111 714 — 825
Charge for the year 87 8,575 — 8,662
Charge for the year 155 8,560 260 8,975
Acquisition of subsidiaries 135 — — 135
At 31 December 2022 and 1 January 2023 488 17,849 260 18,597
Charge for the period 59 2,354 65 2,478
At 31 March 2023 547 20,203 325 21,075
Carrying amounts
At 31 March 2023 715 113,342 6,361 120,418
At 31 December 2022 774 115,696 6,426 122,896
At 31 December 2021 679 124,256 — 124,935
At 31 December 2020 139 132,831 — 132,970
The above intangible assets have finite useful lives. Such intangible assets are amortised on a straight-line basis over the
following periods:
Software 10 years
Power generation rights 15.6 years
Heating generation rights 30 years
22. EQUITY INSTRUMENTS AT FVTOCI

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Unlisted equity investment in the PRC 3,557 7,105 7,105 7,105
Unlisted fund investment in the PRC — — 44,545 86,334
3,557 7,105 51,650 93,439
Note: The above investments represent the Target Company’s equity interest in a private entity and interest in a private
fund established in the PRC respectively. The sole director of the Target Company have elected to designate these
investments as equity instruments at FVTOCI as the sole director of the Company believes that recognising short-
term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Target Group’s
strategy of holding these investments for long-term purposes and realising their performance potential in the long
run.
23. DEFERRED TAX ASSETS (LIABILITIES)
Deferred taxes are calculated in respect of temporary differences under the liability method using the tax rates enacted or
substantively enacted by the end of reporting period.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current income tax assets
against current income tax liabilities and when the deferred income taxes relate to the same taxation authority. The following
amounts, determined after appropriate offsetting, are shown in the consolidated statement of financial position:
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Deferred tax assets 50,845 54,416 62,579 63,426
Deferred tax liabilities (37,083) (38,350) (41,007) (41,776)
13,762 16,066 21,572 21,650
– IIB-40 –
The following are the major deferred tax assets (liabilities) recognised and movements thereon during the year/period:
Right-of-use
assets/lease Business Changes in
liabilities Tax losses combinations fair value Others Total
At 1 January 2020 — — — — — —
Acquisition of subsidiaries — — 11,798 — — 11,798
Credited (charged) to profit or loss 2,280 — (316) — — 1,964
At 31 December 2020 and 1 January 2021 2,280 — 11,482 — — 13,762
At 31 December 2021 and 1 January 2022 5,274 — 10,792 — — 16,066
Acquisition of subsidiaries — 4,250 — — 229 4,479
Charged to other comprehensive income — — — (1,137) — (1,137)
At 31 December 2022 and 1 January 2023 8,128 4,250 10,102 (1,137) 229 21,572
Credited (charged) to profit or loss 698 — (173) — — 525
Charged to other comprehensive income — — — (447) — (447)
At 31 March 2023 8,826 4,250 9,929 (1,584) 229 21,650
As at 31 March 2023, the Target Group has unused tax losses of approximately RMB131,004,000 (as at 31 December 2020,
2021 and 2022 were RMB33,677,000. RMB28,104,000 and RMB101,566,000 respectively) available for offset against future
profits. A deferred tax asset has been recognised in respect of approximately RMB17,001,000 (as at 31 December 2020, 2021 and
2022 were RMBNil. RMBNil and RMB17,001,000 respectively) of such losses. No deferred tax asset has been recognised in
respect of the remaining approximately RMB114,003,000 (for the years ended 31 December 2020, 2021 and 2022 were
RMB33,677,000, RMB28,104,000 and RMB84,565,000 respectively) due to the unpredictability of future profit streams. Included
in unrecognised tax losses are losses with expiry dates as disclosed in the following table. No losses may be carried forward
indefinitely.
As at
Year 2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
2022 3 — — —
2023 5,093 3,651 3,729 —
2024 7,518 7,518 9,651 7,518
2025 21,063 — 3,989 —
2026 — 16,935 16,935 16,935
2027 — — 67,262 62,500
2028 — — — 44,051
33,677 28,104 101,566 131,004
24. OTHER NON-CURRENT ASSETS

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Prepayments for property, plant and equipment 108,745 299,727 244,361 375,300
25. INVENTORIES
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Fuel — — 61,245 87,488
– IIB-41 –
26. TRADE AND BILLS RECEIVABLES

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Trade receivables from contract with customers 736,582 169,344 453,140 592,314
Bills receivables 2,320 — — —
738,902 169,344 453,140 592,314
Less: Provision for impairment loss under ECL model — — (654) (654)
738,902 169,344 452,486 591,660
Details of pledged trade receivables as at 31 December 2020, 2021, 2022 and 31 March 2023 are set out in Note 40.
Details of the trade receivables due from related parties are set out in Note 47.
The Target Group allows a credit period of 30 days to its customers. The following is an ageing analysis of trade
receivables (net of impairment loss under ECL model) presented based on the invoice dates, at the end of each Relevant Periods:
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Current to 30 days 234,582 147,728 428,268 569,567
31–90 days 38,224 2,577 5,828 3,703
91–180 days 12,520 — — —
181–365 days 63,939 — — —
Over 1 year 387,317 19,039 18,390 18,390
736,582 169,344 452,486 591,660
The balance of trade receivables included debtors (see below for ageing analysis) who are past due as at the reporting date
for which the Target Group has not provided for impairment due to no significant change in the creditworthiness of these debtors
and, hence, the amounts are still considered recoverable. Trade receivables that were neither past due nor impaired relate to a large
number of diversified customers for whom there was no recent history of default. The management of the Target Group have
assessed the expected credit losses of all trade and bills receivables and made impairment when they considered as appropriate.
Ageing of trade receivables which are past due but not impaired:
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Overdue by:
1–90 days 38,224 2,577 5,828 3,703
91–180 days 12,520 — — —
181–365 days 63,939 — — —
Over 1 year 387,317 19,039 18,390 18,390
502,000 21,616 24,218 22,093
Movement of impairment losses on trade and bills receivables under ECL model:
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Opening balance — — — 654
Charged for the year/period — — 654 —
Closing balance — — 654 654
Details of impairment assessment are set out in Note 7.
– IIB-42 –

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Other receivables 36,483 210,683 42,264 41,476
Less: Provision for impairment loss under ECL model — (1,606) (1,606) (1,606)
36,483 209,077 40,658 39,870
Prepayments 55,814 18,402 26,323 23,777
Deposits 319 1,324 3,505 6,755
Other tax recoverable 537,089 538,212 254,547 243,887
629,705 767,015 325,033 314,289
Movement of impairment losses on other receivables under ECL model:

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Opening balance — — 1,606 1,606
Charged for the year/period — 1,606 — —
Closing balance — 1,606 1,606 1,606
Details of impairment assessment are set out in Note 7.

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Bank balances 197,313 91,824 345,494 241,610
Notes:
(a) Bank balances carry interest at market rates which range from 0.2% to 0.35% per annum during the Relevant
Periods.
(b) As at 31 December 2020, 2021, 2022 and 31 March 2023, the Target Group’s cash and cash equivalents denominated
in RMB of approximately RMB197,313,000, RMB91,824,000, RMB345,494,000 and RMB241,610,000 are deposited
at banks in the PRC respectively. The conversion of these RMB denominated balances into foreign currencies and
the remittance of funds out of the PRC are subject to the rules and regulations of foreign exchange control
promulgated by the PRC government.
(c) Details of impairment assessment are set out in Note 7.
29. TRADE AND BILLS PAYABLES

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Trade payables 7,243 5,700 8,030 16,504
Bills payable — 99,088 — —
7,243 104,788 8,030 16,504
Details of the trade payables due to related parties are set out in Note 47.
– IIB-43 –
Payment terms with suppliers are mainly on credit ranging from 60 to 180 days from the time when the goods and/or
services are received from the suppliers. The following is an ageing analysis of the trade payables presented based on the date of
receipts of goods/services by the Target Group, at the end of each Relevant Periods:
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Within 6 months 759 2,898 6,410 10,471
7 to 12 months 1,157 2,783 1,218 6,031
Over 1 year 5,327 19 402 2
7,243 5,700 8,030 16,504
Notes:
(a) As at 31 December 2021, bills payables are bills of exchange with maturity period within 3 months.
(b) All trade and bills payables are denominated in RMB.
30. CONTRACT LIABILITIES
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Receipts in advance of performance obligation under sales of
electricity — — 29,454 3,567
Movement in contract liabilities
Opening balance — — — 29,454
Received during the year/period — — 57,853 11,132
Revenue recognised during the year/period — — (28,399) (37,019)
Closing balance — — 29,454 3,567
The Target Group’s contract liabilities mainly represent the Target Group’s obligation to sell of electricity to customers
subsequently for which the Target Group has received advance payments from the customers.
31. OTHER PAYABLES AND ACCRUED CHARGES
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Salaries and staff welfare payables 357 587 620 1,954
Deposits received 322 987 291 277
Receipt in advance 228 1,737 192 1,112
Interest payable 12,032 12,672 8,078 8,612
Other tax payables 5,935 3,670 30,273 9,833
Other payables 99,908 116,033 73,066 45,532
118,782 135,686 112,520 67,320
32. BANK BORROWINGS
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Secured 1,639,383 1,545,886 2,137,467 2,100,893
Unsecured 2,539,617 3,470,170 4,121,857 4,574,040
4,179,000 5,016,056 6,259,324 6,674,933
– IIB-44 –
The carrying amounts of the bank borrowings are repayable:

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Within one year 314,300 268,062 406,836 455,212
Within a period of more than one year but not exceeding two years 250,354 333,242 445,912 480,612
Within a period of more than two years but not exceeding five years 747,216 1,087,036 1,501,927 1,566,743
Within a period of more than five years 2,867,130 3,327,716 3,904,649 4,172,366
4,179,000 5,016,056 6,259,324 6,674,933
Less: Amounts due within one year shown under current liabilities (314,300) (268,062) (406,836) (455,212)
Amounts shown under non-current liabilities 3,864,700 4,747,994 5,852,488 6,219,721
The exposure of the Target Group’s bank borrowings are as follows:

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Fixed-rate borrowings — — 50,051 50,000
Variable-rate borrowings 4,179,000 5,016,056 6,209,273 6,624,933
4,179,000 5,016,056 6,259,324 6,674,933
The ranges of effective interest rates (which are also equal to contracted interest rates) on the Target Group’s bank
borrowings are as follows:
As at
2020 2021 2022 2023
Fixed-rate bank borrowings N/A N/A 3.3% 3.3%
Variable-rate bank borrowings 4.05% to 5.15% 3.3% to 5.15% 3.1% to 4.8% 2.95% to 4.8%
Notes:
(a) Details of secured assets for secured bank borrowings are set out in Note 40.
(b) As at 31 December 2020, 2021, 2022 and 31 March 2023, bank borrowings amounting to approximately RMBNil,
RMBNil, RMB593,702,000 and RMB582,510,000 were guaranteed by a non-controlling shareholder of a Target
Group’s subsidiary respectively.
(c) As at 31 December 2020, 2021, 2022 and 31 March 2023, the Target Group had available unutilised banking
facilities amounted to approximately RMB1,094,195,000, RMB1,541,195,000, RMB195,855,000 and

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Unsecured other loans 1,727,686 169,743 150,523 153,119
The carrying amounts of the other borrowings are repayable:

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Within one year — — — —
Within a period of more than one year but not exceeding two years 553,800 — — —
Within a period of more than two years but not exceeding five years 1,016,602 15,000 — —
Within a period of more than five years 157,284 154,743 150,523 153,119
1,727,686 169,743 150,523 153,119
Less: Amounts due within one year shown under current liabilities — — — —
Amounts shown under non-current liabilities 1,727,686 169,743 150,523 153,119
As at 31 December 2020, 2021, 2022 and 31 March 2023, the balance is unsecured, interest bearing from 5.2% to 14.34%,
4.8% to 14.34%, 8% to 14.34% and 8% to 14.34% per annum respectively.
– IIB-45 –
34. BORROWINGS FROM A RELATED PARTY
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Borrowings from a related party 1,107,000 1,357,791 2,404,931 2,065,341
The carrying amounts of the borrowings from a related party are repayable:
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Within one year — — 809,077 809,077
Within a period of more than one year but not exceeding two years — 307,000 500,000 500,000
Within a period of more than two years but not exceeding five years 1,107,000 1,050,791 1,095,854 756,264
Within a period of more than five years — — — —
1,107,000 1,357,791 2,404,931 2,065,341
Less: Amounts due within one year shown under current liabilities — — (809,077) (809,077)
1,107,000 1,357,791 1,595,854 1,256,264
As at 31 December 2020, 2021 and 2022 and 31 March 2023, the balance is unsecured, interest bearing from 3.85% to
5.5%, 3.75% to 3.85%, 3.5% to 3.85%and 3.5% to 3.85% per annum respectively.
Present value of minimum lease payments:
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Within one year 2,047 2,093 10,315 7,310
Over five years 163,245 181,318 185,922 184,779
181,469 198,108 204,987 203,717
Less: Amounts payables within 12 months under current liabilities (2,047) (2,093) (10,315) (7,310)
Amounts payables after 12 months shown under non-current
liabilities 179,422 196,015 194,672 196,407
The incremental borrowing rates applied to lease liabilities for the Relevant Periods were 4.9% per annum.
36. DEFERRED INCOME
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Opening balance — — 527 506
Additions — 529 — —
Recognised in profit or loss — (2) (21) (5)
Closing balance — 527 506 501
Analysed as:
Current — — — —
Non-current — 527 506 501
— 527 506 501
– IIB-46 –
37. OTHER NON-CURRENT LIABILITIES

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Provisions for poverty alleviation 19,073 18,286 17,460 17,501
During the years 2016 and 2017, three subsidiaries of the Target Group entered into three agreements in respect of
provision for poverty alleviation fund with the local poverty office, respectively. According to the agreements, these three
subsidiaries have to provide poverty alleviation fund to the defined poverty households for twenty years.
38. SHARE CAPITAL
The movements of share capital of the Target Company during the Relevant Periods are as follows:
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
At beginning of the year/period 227,150 386,580 450,580 450,580
Capital injections from shareholder 159,430 64,000 — —
At end of the year/period 386,580 450,580 450,580 450,580
39. OTHER EQUITY INSTRUMENTS
In November 2022 and February 2023, the Target Company issued the perpetual debt with principal amounts of
RMB360,000,000 and RMB100,000,000 to a subsidiary of SPIC, Bridge Trust Co., Ltd.. The perpetual debt carries interest rate at
6.18% and 6.53% per annum with an initial base term of 5 years.
40. PLEDGED OF ASSETS

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Trade receivables 229,219 46,803 205,313 304,352
1,096,485 344,595 487,432 570,798
Other than as disclosed above, the whole equity interests of two subsidiaries within the Target Group in Tailai Haoxin
Photovoltaic Power Generation Co., Limited* (泰來好新光伏發電有限公司) and Daqing Huaguang Solar Power Generation Co.,
Limited* (大慶華光太陽能發電有限責任公司) had been pledged to secure bank borrowings with carrying amount of
approximately RMB114,250,000 RMB140,885,000 RMB126,444,000 and RMB126,251,000 as at 31 December 2020, 2021, 2022
and 31 March 2023 respectively.
41. COMMITMENTS
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
— Property, plant and equipment 2,307,408 3,479,182 2,147,807 2,527,577
42. RETIREMENT BENEFITS SCHEME
The employees of the Target Group which operate in the PRC are required to participate in a central pension scheme
operated by the local municipal government. Target Group is required to contribute a certain percentage of their payroll costs to
the central pension scheme. The contributions are charged to profit or loss as they become payable in accordance with the rules of
the central pension scheme.
For the years ended 31 December 2020, 2021, 2022 and three months ended 31 March 2022 and 2023, the total contribution
to defined contribution retirement benefits scheme charged to the consolidated statement of profit or loss and other comprehensive
income amounted to approximately RMB3,476,000, RMB8,731,000, RMB15,033,000, RMB4,222,000 (unaudited) and
– IIB-47 –
43. ACQUISITION OF SUBSIDIARIES
During the year ended 31 December 2020, the Target Group acquired 100% equity interests in Quzhou Hangkai New
Energy Technology Co., Limited* (衢州杭開新能源科技有限公司) and 100% equity interests in Yunhe Zhongji Energy Co.,
Limited* (雲和縣中機能源有限公司); SPIC assigned 100% equity interests in SPIC Heilongjiang New Energy Co., Limited* (國
家電投集團黑龍江新能源有限公司) (‘‘SPIC Heilongjiang’’) to the Target Group as a capital injection from shareholder.
During the year ended 31 December 2021, the Target Group agreed to subscribe the raised capital of Anda Wanyang Energy
Technology Co., Limited* (‘‘Anda Wanyang’’) (安達市萬揚能源科技有限公司) and to inject RMB7,007,000 for equivalent to
51% equity interests of Anda Wanyang.
During the year ended 31 December 2022, the Target Group acquired 100% equity interests in Muling Huacan New Energy
Co., Limited* (穆棱市華燦新能源有限公司), 100% equity interests in Daqing Honggang District Haizhi New Energy
Development Co., Limited* (大慶市紅崗區海智新能源開發有限公司), 51% equity interests in Daqing Huisheng New Energy Co.,
Limited (大慶會晟新能源有限公司), 51% equity interests in Daqing Saertu District Changrong Solar Power Co., Limited (大慶薩
爾圖區昌榮太陽能發電有限公司), 51% equity interests in Qiqihar Jiuzhou Environmental Energy Co., Limited (齊齊哈爾九洲環
境能源有限公司), 100% equity interests in Keshan Yufeng New Energy Co., Limited (克山縣裕風新能源有限責任公司) and
100% equity interests in Jilin Fubon Energy Technology Service Co., Limited* (吉林省富邦能源科技服務有限公司) in aggregate
of consideration amounted to approximately RMB193,389,000.
Year ended 31 December

2020 2021 2022
RMB’000 RMB’000 RMB’000
Consideration transferred 437,197 7,007 193,389
Add: Non-controlling interests — 7,328 122,597
Less: Net identifiable assets acquired 452,677 14,335 321,172
Gain on bargain purchase of subsidiaries (15,480) — (5,186)

2020 2021 2022
RMB’000 RMB’000 RMB’000
Non-current assets
Property, plant and equipment 1,911,709 155,198 800,707
Right-of-use assets 2,210 — 34,990
Intangible assets 132,831 — 249
Deferred tax assets 11,798 — 4,479
Other non-current assets 150,097 160,012 29,454
Current assets
Inventories — — 45,854
Trade and bills receivables 406,259 — 150,392
Prepayments, deposits and other receivables 1,011,575 18,230 104,522
Cash and cash equivalents 36,928 4,945 22,064
Current liabilities
Trade and bills payables (76,845) (123,088) (386,043)
Other payables and accrued charges (155,392) (200,962) (22,031)
Contract liabilities — — (16,383)
Bank borrowings (20,000) — (50,055)
Tax payables (8,261) — (4,517)
Bank borrowings (2,093,412) — (392,510)
Borrowings from a related party (856,820) — —
Net identifiable assets acquired 452,677 14,335 321,172

2020 2021 2022
RMB’000 RMB’000 RMB’000
Consideration 437,197 7,007 193,389
Less: Other reserve 399,628 — —
Less: Cash and cash equivalents acquired 36,928 4,945 22,064
Net cash outflow arising on acquisition 641 2,062 171,325
– IIB-48 –
44. STEP-ACQUISITION OF SUBSIDIARIES
During the year ended 31 December 2020, the Target Group further acquired 30% of equity interests in Daqing Huaguang
Solar Power Generation Co., Limited* (‘‘Daqing Huaguang’’) (大慶華光太陽能發電有限責任公司) from a non-controlling
shareholder at a consideration of approximately RMB6,953,000. Daqing Huaguang became a wholly-owned subsidiary of the
Target Group. It recognised a gain on step-acquisition of a subsidiary of approximately RMB2,303,000 and credited to other
reserve which shown in consolidated statement of changes in equity.
During the year ended 31 December 2022, the Target Group acquired 49% of equity interest in Anda Longdian New Energy
Co., Limited* (‘‘Anda Longdian’’) (安達市龍電新能源有限公司) and Anda Xingdian New Energy Co., Limited* (‘‘Anda
Xingdian’’) (安達市興電新能源有限公司) from the non-controlling shareholders at consideration in aggregate of approximately
RMB282,741,000. Anda Longdian and Anda Xingdian became wholly-owned subsidiaries of the Target Group. It recognised a
gain on step-acquisition of subsidiaries of approximately RMB8,502,000 and credited to other reserve which shown in consolidated
statement of changes in equity.
45. GAIN ON DEREGISTRATION OF A SUBSIDIARY
During the year ended 31 December 2021, a subsidiary of the Target Group, SPIC Harbin Power Heating Co., Limited* (國
家電投集團哈爾濱熱電有限公司) (‘‘SPIC Harbin’’) was deregistered.
The net liabilities of SPIC Harbin at the date of deregistration were as follows:
RMB’000
Other payables (1,606)
Net liabilities being disposal of (1,285)
Non-controlling interest (321)
Gain arising on deregistration of a subsidiary (1,606)
Analysis of cash flow of cash and cash equivalents arising from
deregistration of a subsidiary —
46. DEEMED PARTIAL DISPOSAL OF SUBSIDIARIES
During the year ended 31 December 2022, the Target Group entered into an agreement (‘‘Agreement’’) in respect of capital
raising of SPIC Heilongjiang with an independent third party (‘‘Subscriber’’). Pursuant to the Agreement, the Subscriber agreed to
inject RMB300,000,000 for equivalent to 40.35% equity interests of SPIC Heilongjiang.
The net assets of SPIC Heilongjiang and its subsidiaries at the date of deemed partial disposal were as follows:
RMB’000
Property, plant and equipment 1,842,312
Intangible assets 17,102
Other non-current assets 32,240
Trade and bills receivables 163,212
Trade and bills payables (14,996)
Other payables and accrued charges (733,611)
Tax payables (4,322)
Borrowings (1,399,303)
Deferred tax liabilities (4,148)
Other non-current liabilities (24,448)
Net assets at the date of deemed partial disposal 745,711
Net assets deemed disposed of 300,901
Less: Cash inflow from deemed partial disposal of subsidiaries 300,000
Loss on deemed partial disposal of subsidiaries — other reserve 901
– IIB-49 –
47. RELATED PARTY TRANSACTIONS
(a) Other than as disclosed elsewhere in the Historical Financial Information, during the Relevant Periods, the Target
Group entered into transactions/had balances with the following related parties:
Nature of Year ended 31 December Three months ended 31 March

Relationship transactions/balance 2020 2021 2022 2022 2023
(unaudited)
Fellow subsidiaries Interest expenses — 3,194 4,889 1,222 1,934
Consultancy fee — — 2,503 250 —
Service income — — 8,441 — —
As at
As at December 31 March
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Fellow subsidiaries Trade receivables — — 10,557 10,557
Prepayment, deposits and other receivables 33,993 33,158 28,410 31,235
Other payable and accrued charges 13,070 25,387 38,481 16,340
(b) Compensation of key management personnel
The sole director of the Target Company considered that he is the only key management personnel of the Target
Group and his remuneration has been set out in Note 18.
48. RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES
Lease liabilities Borrowings Total

RMB’000 RMB’000 RMB’000
At 1 January 2020 142,510 4,111,451 4,253,961
Cash flows:
— Repayment (1,598) (234,124) (235,722)
Non-cash movements:
— Interest expense 7,036 166,127 173,163
— Acquisition of subsidiaries — 2,970,232 2,970,232
— Other changes 33,521 — 33,521
At 31 December 2020 and 1 January 2021 181,469 7,013,686 7,195,155
Cash flows:
— Repayment (6,591) (796,977) (803,568)
Non-cash movements:
— Other changes 14,309 — 14,309
Cash flows:
— Drawdown (repayment) (90,099) 1,440,317 1,350,218
Non-cash movements:
— Acquisition of subsidiaries — 442,565 442,565
— Other changes 87,561 — 87,561
Cash flows:
— Repayment (3,676) (11,154) (14,830)
Non-cash movements:
— Other changes 15 — 15
At 31 March 2023 203,717 8,893,393 9,097,110
– IIB-50 –
49. STATEMENT OF FINANCIAL POSITION OF THE TARGET COMPANY
As at
2020 2021 2022 2023
Non-current assets
Intangible assets 29 590 457 425
Investment in subsidiaries 1,102,229 1,195,879 2,202,490 2,269,770
Equity instruments at FVTOCI 3,557 7,105 51,650 93,439
Other non-current assets 334 19,495 334 334
1,216,586 1,353,352 2,425,663 2,533,224
Current assets
Trade and bills receivables 50,410 — — —
Amounts due from subsidiaries 280,876 791,126 1,827,185 1,481,104
481,673 1,209,173 1,881,115 1,562,901
Current liabilities
Trade and bills payables — 210 891 849
Amounts due to subsidiaries 562,524 524,295 896,898 1,178,528
Borrowings from a related party — — 809,077 809,077
Tax payables 259 177 159 49
609,608 644,125 1,792,149 2,035,456
Net current (liabilities) assets (127,935) 565,048 88,966 (472,555)
Borrowings from a related party 307,000 1,057,791 1,293,680 756,265
Deferred tax liabilities — — 1,137 1,584
307,000 1,057,791 1,294,817 757,849
Net assets 781,651 860,609 1,219,812 1,302,820
Capital and reserves
Share capital 38 386,580 450,580 450,580 450,580
Reserves 50 395,071 410,029 409,232 392,240
Total equity 781,651 860,609 1,219,812 1,302,820
– IIB-51 –
50. RESERVES MOVEMENT OF THE TARGET COMPANY
Statutory FVTOCI Accumulated

reserve reserve Other reserve losses Total
(Note i) (Note ii)
At 1 January 2020 — — — (15) (15)
Total comprehensive income for the year — — — 27,709 27,709
Transfer to statutory reserve 2,771 — — (2,771) —
Capital injections from shareholder — — 397,347 — 397,347
Final dividend paid — — — (29,970) (29,970)
At 31 December 2020 and 1 January 2021 2,771 — 397,347 (5,047) 395,071
Total comprehensive income for the year — — — 33,193 33,193
Transfer to statutory reserve 2,815 — — (2,815) —
Capital re-organisation on subsidiaries — — 20,000 — 20,000
At 31 December 2021 and 1 January 2022 5,586 — 417,347 (12,904) 410,029
Profit for the year — — — 10,932 10,932
Other comprehensive income:
Fair value gain on equity instruments
at FVTOCI, net of tax — 3,408 — — 3,408
Total comprehensive income — 3,408 — 10,932 14,340
Capital re-organisation on subsidiaries — — 32,160 — 32,160
At 31 December 2022 and 1 January 2023 5,586 3,408 449,507 (49,269) 409,232
Loss for the period — — — (18,334) (18,334)
Other comprehensive income:
Fair value gain on equity instruments
at FVTOCI, net of tax — 1,342 — — 1,342
Total comprehensive expense — 1,342 — (18,334) (16,992)
At 31 March 2023 5,586 4,750 449,507 (67,603) 392,240
Notes:
(i) Statutory reserve
Statutory reserves are non-distributable and the transfers to these funds are determined by the directors of the
relevant PRC entities in accordance with the relevant laws and regulations in the PRC.
(ii) Other reserve
Other reserve mainly represents the difference between the fair value of the net assets injected by the owner of the
relevant companies of the Target Group and the registered capital of these companies upon their establishment.
– IIB-52 –
Details of the Target Company’s subsidiaries at the end of the Relevant Periods are set out below:
Place of
incorporation/ Registered/paid-up
operations capital Proportion of ownership interest and voting power held by the Target Company directly and indirectly Principal activities
As at 31 December As at 31 March
2020 2021 2022 2023
APPENDIX IIB
Name of subsidiary Directly Indirectly Directly Indirectly Directly Indirectly Directly Indirectly
Yunhe Zhongji Energy Co., Limited* The PRC RMB50,000,000 100% — 100% — 100% — 100% — Generation and sales of
(雲和縣中機能源有限公司) electricity
Quzhou Hangkai New Energy The PRC RMB51,380,000 100% — 100% — 100% — 100% — Generation and sales of
Technology Co., Limited* (衢州 electricity
杭開新能源科技有限公司)
Daqing Huaguang Solar Power The PRC RMB15,500,000 100% — 100% — 100% — 100% — Generation and sales of
Generation Co., Limited* (大慶華 electricity
光太陽能發電有限責任公司)
Anda Longdian New Energy Co., The PRC RMB107,800,000 51% — 51% — 100% — 100% — Generation and sales of
Limited* (安達市龍電新能源有限 electricity
公司)
Anda Xingdian New Energy Co., The PRC RMB635,000,000 51% — 51% — 100% — 100% — Generation and sales of
Limited* (安達市興電新能源有限 electricity
公司)
Quzhou Qujiang Hehe New Energy The PRC RMB101,323,700 56% — 56% — 56% — 56% — Generation and sales of
– IIB-53 –
Technology Co., Limited* (衢州 electricity
市衢江區禾和新能源科技有限公
司)
Suichang Jinghe New Energy The PRC RMB59,658,500 55% — 55% — 55% — 55% — Generation and sales of
Technology Co., Limited* (遂昌 electricity
縣晶禾新能源科技有限公司)
SPIC Heilongjiang New Energy Co., The PRC RMB670,589,400 100% — 100% — 60% — 60% — Generation and sales of
Limited* (國家電投集團黑龍江新 electricity
能源有限公司)
Tailai Haoxin Photovoltaic Power The PRC RMB33,500,000 — 100% — 100% — 60% — 60% Generation and sales of
Generation Co., Limited* (泰來好 electricity
新光伏發電有限公司)
Anda Tongke New Energy Co., The PRC RMB65,600,000 — 100% — 100% — 60% — 60% Generation and sales of
Limited* (安達市同科新能源有限 electricity
公司)
Zhaozhou Jingrui New Energy The PRC RMB104,500,000 — 100% — 100% — 60% — 60% Generation and sales of
Technology Co., Limited* (肇州 electricity
縣精銳新能源科技有限公司)
Daqing Lvrui Solar Power Co., The PRC RMB69,500,000 — 100% — 100% — 60% — 60% Generation and sales of
Limited* (大慶綠銳太陽能發電有 electricity
限公司)
Place of
2020 2021 2022 2023
Liaoning Zhitong Dongguan The PRC RMB20,000,000 — 100% 100% — — 60% — 60% Generation and sales of
APPENDIX IIB
Photovoltaic Power Co., Limited* electricity

(遼寧直通東關光伏電力有限公司)
Liaoning Sanyi Photovoltaic Power The PRC RMB77,700,000 — 100% — 100% — 60% — 60% Generation and sales of
Co., Limited* (遼寧三義光伏電力 electricity
有限公司)
Liaoning Huayu Sanxin Photovoltaic The PRC RMB78,300,000 — 100% — 100% — 60% — 60% Generation and sales of
Power Co., Limited* (遼寧華宇三 electricity
鑫光伏電力有限公司)
Jilin Fubon Energy Technology The PRC RMB37,000,000 — — — — — 60% — 60% Generation and sales of
Service Co., Limited* (吉林省富 electricity
邦能源科技服務有限公司)
Nongan Xinsheng New Energy Co., The PRC RMB28,513,000 — 100% — 100% — 60% — 60% Generation and sales of
Limited* (農安縣欣盛新能源有限 electricity
公司)
Songyuan Green Building The PRC RMB27,800,000 — 100% — 100% — 60% — 60% Generation and sales of
Photovoltaic Power Generation electricity
– IIB-54 –
Co., Limited* (松原綠築光伏發電
有限公司)
Changchun Longfa New Energy Co., The PRC RMB26,542,000 — 100% — 100% — 60% — 60% Generation and sales of
Limited* (長春龍發新能源有限公 electricity
司)
Tailai Zhongdian Shuangxing The PRC RMB15,718,600 — 100% — 100% — 60% — 60% Generation and sales of
Co., Limited* (泰來中電雙興光伏
發電有限公司)
China Power Investment Tailai The PRC RMB15,893,840 — 100% — 100% — 60% — 60% Generation and sales of
Co., Limited* (中電投泰來光伏發
電有限公司)
Nong’an Xinhe Energy Investment The PRC RMB7,112,040 — 100% — 100% — 60% — 60% Generation and sales of
Co., Limited* (農安新合能源投資 electricity
有限公司)
Kedong Lvzhi New Energy Co., The PRC RMB117,000,000 — — 100% — 100% — 100% — Generation and sales of
Limited* (克東縣綠智新能源有限 electricity
公司)
Place of
2020 2021 2022 2023
Muling Huacan New Energy Co., The PRC RMB5,340,000 — — 100% — 100% — 100% — Generation and sales of
APPENDIX IIB
Limited* (穆棱市華燦新能源有限 electricity

公司)
Daqing Huisheng New Energy Co., The PRC RMB36,150,000 — — 100% — 100% — 100% — Generation and sales of
Limited* (大慶會晟新能源有限公 electricity
司)
Qiqihar Jiuzhou Environmental The PRC RMB238,786,000 — — 51% — 51% — 51% — Generation and sales of
Energy Co., Limited* (齊齊哈爾 electricity
九洲環境能源有限公司)
Anda Wanketong Power Technology The PRC RMB27,926,042 — — — 51% — 51% — 51% Generation and sales of
Co., Limited* (安達市萬客通電力 electricity
科技有限公司)
Anda City Wide Area Power The PRC RMB15,875,737 — — — 51% — 51% — 51% Generation and sales of
Technology Co., Limited* (安達 electricity
市廣域電力科技有限公司)
Keshan Yufeng New Energy Co., The PRC RMB89,774,000 — — — — 100% — 100% — Generation and sales of
Limited* (克山縣裕風新能源有限 electricity
– IIB-55 –
責任公司)
Daqing Honggang District Haizhi The PRC RMB178,000,000 — — — — 100% — 100% — Generation and sales of
New Energy Development Co., electricity
Limited* (大慶市紅崗區海智新能
源開發有限公司)
Mudanjiang Lvzhi New Energy Co., The PRC RMB12,100,300 — — — — 70% — 70% — Generation and sales of
Limited* (牡丹江市綠智新能源有 electricity
限公司)
Heilongjiang Lvsheng Energy The PRC RMB30,660,000 — — — — 60% — 60% — Generation and sales of
Development Co., Limited* (黑龍 electricity
江綠晟能源發展有限公司)
Baoqing Lvsheng Heating Co., The PRC RMB27,599,800 — — — — — 60% — 60% Generation and sales of
Limited* (寶清縣綠晟供熱有限公 electricity
司)
Daqing Saertu District Changrong The PRC RMB63,798,881 — — — — 51% — 51% — Generation and sales of
Solar Power Co., Limited* (大慶 electricity
薩爾圖區昌榮太陽能發電有限公
司)

52. DETAILS OF NON WHOLLY-OWNED SUBSIDIARIES THAT HAVE MATERIAL NON-CONTROLLING INTERESTS
The table below shows details of non wholly-owned subsidiaries of the Target Group that have material non-controlling interests:
Place of
incorporation/ Proportion of ownership interest and voting power
Name of subsidiary operations held by the non-controlling interests Profit allocate to non-controlling interests Accumulated non-controlling interests
As at Three months ended As at
As at 31 December 31 March Year ended 31 December 31 March As at 31 December 31 March
2020 2021 2022 2023 2020 2021 2022 2022 2023 2020 2021 2022 2023
APPENDIX IIB
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000

(Unaudited)
Anda Xingdian New Energy Co., Limited*
(安達市興電新能源有限公司) The PRC 49% 49% — — 2,434 6,726 — — — 208,871 215,597 — —
SPIC Heilongjiang New Energy Co.,
Limited* (國家電投集團黑龍江新能源有
限公司) and its subsidiaries The PRC — — 40% 40% — — 2,352 3,725 4,588 — — 303,769 308,357
Individually immaterial subsidiaries with
non-controlling interests 58,618 65,975 135,174 151,210
267,489 281,572 438,943 459,567
– IIB-56 –
53. EARNINGS PER SHARE
Earnings per share information is not presented as its inclusion for the purpose of this report is not considered meaningful.
54. EVENTS AFTER REPORTING PERIOD
There are no significant subsequent events occurred after 31 March 2023 and up to the date of this accountants’ report.
55. SUBSEQUENT FINANCIAL STATEMENTS
No audited financial statements of the Target Group, the Target Company or any of its subsidiaries have been prepared in
respect of any period subsequent to the end of the Relevant Periods.
– IIB-57 –
APPENDIX IIC ACCOUNTANTS’ REPORT ON FUJIAN COMPANY
ACCOUNTANTS’ REPORT ON FUJIAN COMPANY
The following is the text of reports received from Baker Tilly Hong Kong Limited, Certified Public
Accountants, Hong Kong, for the purpose of incorporation in this circular.
ACCOUNTANTS’ REPORT ON HISTORICAL FINANCIAL INFORMATION OF SPIC FUJIAN

ELECTRIC POWER CO., LTD
Introduction
We report on the historical financial information of SPIC Fujian Electric Power Co., Ltd (國家電
投集團福建電力有限公司) (the ‘‘Target Company’’) and its subsidiaries (together, the ‘‘Target Group’’)
set out on pages IIC-4 to IIC-67, which comprises the combined statements of financial position as at 31
December 2020, 2021 and 2022 and 31 March 2023, and the combined statements of profit or loss and
other comprehensive income, the combined statements of changes in equity and the combined statements
of cash flows for each of the years ended 31 December 2020, 2021 and 2022 and the three months ended
31 March 2023 (the ‘‘Relevant Periods’’) and a summary of material accounting policy information and
other explanatory information (the ‘‘Historical Financial Information’’). The Historical Financial
Information set out on pages IIC-4 to IIC-67 forms an integral part of this report, which has been
prepared for inclusion in the circular of China Power International Development Limited (the
‘‘Company’’) dated 18 August 2023 (the ‘‘Circular’’) in connection with the proposed acquisition of
100% of equity interests of the Target Company by the Company (the ‘‘Proposed Acquisition’’).
The directors of the Target Company (the ‘‘Directors’’) are responsible for the preparation of the
Historical Financial Information that gives a true and fair view in accordance with the basis of
preparation set out in Note 2 to the Historical Financial Information, and for such internal control as the
Directors determine is necessary to enable the preparation of the Historical Financial Information that is
free from material misstatement, whether due to fraud or error.
– IIC-1 –
estimates made by the Directors, as well as evaluating the overall presentation of the Historical
our opinion.
Opinion
In our opinion, the Historical Financial Information gives, for the purpose of the accountants’
report, a true and fair view of the Target Group’s financial position as at 31 December 2020, 2021 and
2022 and 31 March 2023 and of the financial performance and cash flows of the Target Group for the
Relevant Periods in accordance with the basis of preparation set out in Note 2 to the Historical Financial
Information.
We have reviewed the stub period comparative financial information of the Target Group which
comprises the combined statement of profit or loss and other comprehensive income, the combined
statement of changes in equity and the combined statement of cash flows for the three months ended 31
March 2022 and other explanatory information (the ‘‘Stub Period Comparative Financial Information’’).
The Directors are responsible for the preparation and presentation of the Stub Period Comparative
Financial Information in accordance with the basis of preparation and presentation set out in Note 2 to
the Historical Financial Information. Our responsibility is to express a conclusion on the Stub Period
Comparative Financial Information based on our review. We conducted our review in accordance with
Hong Kong Standard on Review Engagements 2410 ‘‘Review of Interim Financial Information
Performed by the Independent Auditor of the Entity’’ issued by the HKICPA. A review consists of
making inquiries, primarily of persons responsible for financial and accounting matters, and applying
analytical and other review procedures. A review is substantially less in scope than an audit conducted
in accordance with Hong Kong Standards on Auditing and consequently does not enable us to obtain
assurance that we would become aware of all significant matters that might be identified in an audit.
attention that causes us to believe that the Stub Period Comparative Financial Information, for the
purposes of the accountants’ report, is not prepared, in all material respects, in accordance with the basis
of preparation and presentation set out in Note 2 to the Historical Financial Information.
Hong Kong Limited and the Companies (Winding Up and Miscellaneous Provisions) Ordinance
Adjustments

Statements as defined on page IIC-4 have been made.
– IIC-2 –
Dividends
dividends declared by the Target Company for the Relevant Periods.
Baker Tilly Hong Kong Limited

Wan Wing Ping
Practising certificate number P07471
– IIC-3 –
HISTORICAL FINANCIAL INFORMATION OF THE TARGET GROUP
The combined financial statements of the Target Group for the Relevant Periods, on which the
Historical Financial Information is based, have been prepared in accordance with accounting policies
which conform with Hong Kong Financial Reporting Standards (‘‘HKFRSs’’) issued by the Hong Kong
Institute of Certified Public Accountants (‘‘HKICPA’’) (‘‘Underlying Financial Statements’’) and were
audited by us in accordance with Hong Kong Standards on Auditing issued by the HKICPA.
I. HISTORICAL FINANCIAL INFORMATION OF THE TARGET GROUP
COMBINED STATEMENTS OF PROFIT AND LOSS AND OTHER COMPREHENSIVE

INCOME
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Revenue 4 74,488 220,180 371,941 86,808 136,886
Other income 5 3,966 867 10,732 1,355 5,086
Depreciation (23,220) (72,789) (128,715) (28,905) (41,668)
Staff costs 6 (10,164) (25,308) (60,283) (12,412) (22,939)
Repairs and maintenance (316) (673) (2,170) (92) (271)
Other gains and losses, net 7 8,109 28,972 10,255 1,332 (26,177)
Operating profit 9 29,347 103,583 132,666 36,685 27,645
Finance income 10 2,477 1,804 241 45 80
Finance costs 10 (22,944) (68,115) (85,562) (19,170) (23,180)
Share of result of an associate — — (37) — (20)
Share of result of a joint venture — — 13,224 (404) 3,725
Profit before taxation 8,880 37,272 60,532 17,156 8,250
Income tax expense 11 (890) (2,371) (14,924) (34) (4,842)
for the year/period 7,990 34,901 45,608 17,122 3,408
Attributable to:
Equity holders of the Target Company 5,656 31,958 21,870 14,385 (4,661)
Non-controlling interests 2,334 2,943 23,738 2,737 8,069
7,990 34,901 45,608 17,122 3,408
The accompanying notes form part of the Historical Financial Information.
– IIC-4 –
COMBINED STATEMENTS OF FINANCIAL POSITION

As at
2020 2021 2022 2023
ASSETS
Non-current assets
Property, plant and equipment 14 675,543 2,288,305 3,290,290 3,302,375
Other intangible assets 17 — — 280,909 280,073
Interest in an associate 18 — — 47 27
Interest in a joint venture 19 — — 213,224 216,949
Prepayments for construction of power plants 16 — — 54,054 38,662
679,202 2,305,977 4,028,892 4,025,891
Current assets
Inventories 20 91 115 368 1,186
Accounts receivable 21 186,135 303,263 475,562 547,438
Amounts due from related parties 23 55,201 3,321 3,339 3,495
Restricted deposits 24 4,000 — — —
439,798 577,817 928,862 981,392
Total assets 1,119,000 2,883,794 4,957,754 5,007,283
EQUITY
Equity attributable to equity holders of the Target Company
Paid-in capital 26 35,500 434,910 895,124 895,124
Reserves 28 190,320 221,798 253,918 247,809
225,820 656,708 1,249,556 1,244,242
Non-controlling interests 63,427 104,860 403,984 413,389
Total equity 289,247 761,568 1,653,540 1,657,631
LIABILITIES
Bank borrowings 29 13,000 654,337 1,146,660 1,715,989
Other borrowings 30 277,439 905,700 727,714 596,038
Borrowings from related parties 31 166,201 124,943 358,752 28,460
Deferred income — — 4,000 4,761
Deferred tax liabilities 33 — — 12,177 12,177
456,640 1,684,980 2,249,303 2,357,425
Current liabilities
Construction costs payable 135,377 210,696 322,320 336,165
Amounts due to related parties 23 6 651 645 5,354
Bank borrowings 29 49,906 38,883 100,803 88,987
Other borrowings 30 842 43,618 119,375 110,654
Borrowings from related parties 31 128,000 28,038 304,023 250,000
Leases liabilities 32 — — 37,892 19,543
Tax payable 856 2,899 2,392 5,646
373,113 437,246 1,054,911 992,227
Total liabilities 829,753 2,122,226 3,304,214 3,349,652
Net current assets/(liabilities) 66,685 140,571 (126,049) (10,835)
Total assets less current liabilities 745,887 2,446,548 3,902,843 4,015,056
– IIC-5 –
COMBINED STATEMENTS OF CHANGES IN EQUITY

Attributable to equity shareholder of the Target Company
Other Non-
Paid-in equity Other Retained controlling Total
capital instruments reserves earnings Sub-total interests equity
(Note 26) (Note 27)
At 1 January 2020 — — 176,943 7,721 184,664 22,473 207,137
Profit and total comprehensive income for the year — — — 5,656 5,656 2,334 7,990
Capital injection 35,500 — — — 35,500 — 35,500
Acquisitions of subsidiaries — — — — — (3,680) (3,680)
Capital injection from non-controlling shareholders
of subsidiaries — — — — — 42,300 42,300
At 31 December 2020 and 1 January 2021 35,500 — 176,943 13,377 225,820 63,427 289,247
Transactions with non-controlling interests — — 1,156 — 1,156 (6,513) (5,357)
Acquisitions of subsidiaries — — — — — 26,318 26,318
of subsidiaries — — — — — 18,685 18,685
Dividends recognised as distribution — — — (1,636) (1,636) — (1,636)
At 31 December 2021 434,910 — 178,099 43,699 656,708 104,860 761,568
At 1 January 2022 434,910 — 178,099 43,699 656,708 104,860 761,568
of subsidiaries — — — — — 6,876 6,876
Accrual of safety fund reserve — — 481 (677) (196) 196 —
Deemed disposal of interests in a subsidiary without
loss of control — — 28,686 — 28,686 271,314 300,000
Issuance of perpetual capital instruments — 100,000 — — 100,000 — 100,000
Profit attributable to holders of other equity
instruments — 514 — (514) — — —
Deregistration of a subsidiary — — — — — (3,000) (3,000)
Dividends recognised as distribution — — — (14,796) (14,796) — (14,796)
Others — — (2,930) — (2,930) — (2,930)
At 31 December 2022 and 1 January 2023 895,124 100,514 204,336 49,582 1,249,556 403,984 1,653,540
(Loss)/profit and total comprehensive (expense)/
income for the period — — — (4,661) (4,661) 8,069 3,408
Accrual of safety fund reserve — — 1,522 (2,175) (653) 653 —
of subsidiaries — — — — — 683 683
Profit attributable to holders of other equity
instruments — 795 — (795) — — —
At 31 March 2023 895,124 101,309 205,858 41,951 1,244,242 413,389 1,657,631
At 1 January 2022 (audited) 434,910 — 178,099 43,699 656,708 104,860 761,568
Profit and total comprehensive income for the period — — — 14,385 14,385 2,737 17,122
of subsidiaries — — — — — 1,804 1,804
Others — — (2,180) — (2,180) — (2,180)
At 31 March 2022 (unaudited) 634,910 — 175,919 58,084 868,913 109,401 978,314
– IIC-6 –
COMBINED STATEMENTS OF CASH FLOWS
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Net cash (used in)/generated from operating
activities 35(a) 1,295 54,689 224,017 (15,549) (4,082)
Cash flows from investing activities
Payments for property, plant and equipment and
prepayments for construction of power plants (64,581) (819,004) (334,391) (159,573) (53,620)
Payments for right-of-use assets (2,565) (5,075) (12,771) — (259)
Additions to other intangible assets — — (280,909) — —
Net cash outflow on acquisitions of subsidiaries (47,279) (69,899) (102,679) — —
Investment in an associate — — (84) — —
Investment in a joint venture — — (200,000) (200,000) —
Decrease in restricted deposits — 4,000 — — —
Interests received 2,477 1,804 241 45 80
Deregistration of a subsidiary — — (3,000) — —
Acquisition of non-controlling interests — (5,357) — — —
Net cash used in investing activities (111,948) (893,531) (933,593) (359,528) (53,799)
Drawdown of bank borrowings 35(b) 283,028 683,537 664,202 188,643 577,202
Drawdown of borrowings from related parties 35(b) 294,201 20,500 1,007,811 — —
Drawdown of other borrowings 35(b) 118,435 794,743 75,757 118,317 —
shareholders of subsidiaries 42,300 18,685 6,876 1,804 683
Net proceeds from capital injection 35,500 399,410 460,214 200,000 —
Deemed disposal in interest in a subsidiary
without loss of control — — 300,000 — —
Repayment of bank borrowings 35(b) (507,822) (53,223) (219,959) (28,773) (19,689)
Repayment of borrowings from related parties 35(b) — (161,720) (498,017) (49,481) (384,315)
Repayment of other borrowings 35(b) (147,003) (851,338) (1,070,213) (43,618) (140,397)
Payments for lease liabilities 35(b) — — (20,825) — (18,349)
Dividend paid — (1,636) (14,796) — —
Issuance of perpetual capital instruments — — 100,000 — —
Net cash generated from financing activities 118,639 848,958 791,050 386,892 15,135
equivalents 7,986 10,116 81,474 11,815 (42,746)
Cash and cash equivalents at beginning of the
year/period 54,520 62,506 72,622 72,622 154,096
Cash and cash equivalents at end of the
year/period 25 62,506 72,622 154,096 84,437 111,350
– IIC-7 –
II. NOTES TO THE HISTORICAL FINANCIAL INFORMATION OF THE TARGET GROUP

The Target Company was established in the People’s Republic of China (the ‘‘PRC’’) as a limited liability company on 14
April 2020. The Target Company did not carry on any business until the completion of the Reorganisation (as defined below).
The Target Group is principally engaged in investment holdings, generation and sales of electricity and the development of
power plants in the PRC (the ‘‘Relevant Business’’). The principal place of business is Fujian Province in the PRC.
The Target Group is controlled by State Power Investment Corporation Limited (國家電力投資集團有限公司) (‘‘SPIC’’), a
wholly state-owned enterprise established in the PRC. The Directors regard SPIC as the immediate and ultimate holding company
of the Target Company.
2. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION
The material accounting policy information applied in the preparation of the Historical Financial Information are set out
below. These policies have been consistently applied throughout the Relevant Periods.
2.1 Basis of preparation
Prior to the establishment of the Target Company, the Relevant Business was carried out through State Power
Investment Group Fujian New Energy Co., Ltd. (國家電投集團福建新能源有限公司) (‘‘Fujian New Energy’’) and State
Power Investment Corporation Pingtan Energy Co., Ltd. (國家電投集團平潭能源有限公司) (‘‘SPIC Pingtan’’), which were
wholly-owned by SPIC, the immediate parent of the Target Company, and their subsidiaries. Pursuant to the equity transfer
agreement (the ‘‘Transfer Agreement’’) dated 2 July 2020, SPIC agreed to gratuitously transfer its entire equity interests in
Fujian New Energy and Pingtan Energy to the Target Company (the ‘‘Reorganisation’’).
Upon completion of the Reorganisation on 2 July 2020, Fujian New Energy and Pingtan Energy became wholly-
owned subsidiaries of the Target Company. As the Reorganisation brought two previously uncombined business (i.e. Fujian
New Energy and Pingtan Energy) together under a newly set up company (i.e. the Target Company), and all these entities
were ultimately controlled by SPIC before and after the Reorganisation and the control is not transitory, it constitutes a
business combination involving entities or businesses under common control and is accounted for using merger accounting
in accordance with Hong Kong Accounting Guideline 5 (Revised), Merger Accounting for Common Control Combinations.
The Historical Financial Information has been prepared as if the Target Company had been in existence throughout
the reported period presented as the combining businesses, in substance, are continuing to trade as before, but with a new
legal parent (i.e. the Target Company). The net assets of the combining entities or businesses are consolidated/combined
using existing book values from SPIC’s perspective. No amount is recognised in respect of goodwill or bargain purchase
gain at the time of this common control combination. The consolidated/combined statement of profit or loss and other
comprehensive income includes the results of each of the combining entities or businesses from the earliest date presented
or since the date when the combining entities or businesses first came under the common control, where this is a shorter
period.
The Historical Financial Information of the Target Group has been prepared solely for inclusion in the Circular of
the Company in connection with the proposed acquisition. For the purpose of preparation of the Historical Financial
Information of the Target Group, the assets and liabilities and operating results of SPIC Pingtan, Zhangzhou Jiaomei SPIC
New Energy Development Co., Ltd. (漳州角美國電投新能源開發有限公司) and Nanping Ronghua SPIC New Energy Co.,
Ltd. (南平市榮華國電投新能源有限公司) (‘‘the Excluded Entities’’) have been excluded (i.e. a ‘‘carve-out’’ basis).
Management of the Company is of the view that it is more appropriate to present the Historical Financial
Information during the Relevant Periods on a ‘‘carve-out’’ basis, due to the following reasons:
. Target Group is clearly delineated from Excluded Entities in terms of the nature of business and management.
. There are clearly identifiable assets, liabilities, revenue and expenditures of the Target Group and of the
Excluded Entities respectively.
. It is practicable to identify the historical financial information attributable to the Target Group’s business
given that the accounting books and records of the Target Group are maintained separately from the
accounting books and records of Excluded Entities.
. Excluded Entities do not form part of the businesses to be acquired by the Company under the Proposed
Acquisition and hence its historical financial information is not relevant to the trading record of the business
proposed to be acquired. The directors of the Company believe that presenting the Historical Financial
Information of the Target Group and Excluded Entities, which would include the results of Excluded Entities
that is not the subject of the Proposed Acquisition, would provide irrelevant and potentially misleading
– IIC-8 –
financial information to the users of this Historical Financial Information. As such, presenting the historical
financial information of the Target Group on a ‘‘carve-out’’ basis would provide more direct and relevant
information to the users of the financial information.
No significant adjustments or allocations of expenses for adoption of a ‘‘carve-out’’ basis were made in the financial
information. For the purpose of the Proposed Acquisition, the Historical Financial Information of the Target Group presents
the combined financial positions, results and cash flows of the companies now comprising the Target Group excluded the
Excluded Entities and as if the group structure had been in existence throughout the Relevant Periods.
Intra-group balances, transactions and unrealised gains/losses on intra-group transactions are eliminated in full in
preparing the Historical Financial Information.
The Historical Financial Information has been prepared in accordance with Hong Kong Financial Reporting
Standards (‘‘HKFRSs’’) issued by the HKICPA. In addition, the Historical Financial Information also complies with the
applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong
Limited.
The Historical Financial Information has been prepared under the historical cost convention. The Historical Financial
Information is presented in Renminbi (‘‘RMB’’) and all values are rounded to the nearest thousand (RMB’000) except when
otherwise indicated.
The Stub Period Corresponding Financial Information has been prepared in accordance with the same basis of
preparation and presentation adopted in respect of the Historical Financial Information.
As at 31 December 2022 and 31 March 2023, the Target Group’s current liabilities exceeded their current assets by
RMB126,049,000 and RMB10,835,000 respectively. Taking into account the banking facilities available to the Target
Group, the Directors have, at the time of approving the Historical Financial Information, a reasonable expectation that the
Target Group has adequate resources to meet its liabilities as and when they fall due and to continue in operational
existence for the foreseeable future. Thus the Target Group continues to adopt the going concern basis of accounting in
preparing its Historical Financial Information.
2.2 Changes in accounting policies and disclosures
For the purpose of preparing and presenting the Historical Financial Information for the Relevant Periods, the Target
Group has consistently adopted the HKFRSs issued by the HKICPA which are effective for the Target Group’s financial
period beginning on 1 January 2023.
2.3 Issued but not yet effective HKFRSs
The HKICPA has issued a number of new and revised HKFRSs. The Target Group has not early applied the
following new and amendments to HKFRSs that have been issued but are not yet effective:
Amendments to HKFRS 10 and Sale or Contribution of Assets between an Investor and its Associate or Joint
HKAS 28 Venture1
Amendments to HKAS 1 Classification of Liabilities as Current or Non-current and related
amendments to Hong Kong Interpretation 5 (the ‘‘2020 Amendments’’)2, 3
Amendments to HKAS 1 Non-current Liabilities with Covenants (the ‘‘2022 Amendments’’)2
1
No mandatory effective date yet determined but available for adoption
2
Effective for annual periods beginning on or January 1, 2024
3
As a consequence of the 2022 Amendments, the effective date of the 2020 Amendments was deferred to
annual periods beginning on or after 1 January 2024. In addition, as a consequence of the 2020 Amendments
and 2022 Amendments, Hong Kong Interpretation 5 ‘‘Presentation of Financial Statements — Classification
by the Borrower of a Term Loan that Contains a Repayment on Demand Clause’’ was revised to align the
corresponding wording with no change in conclusion
The Directors anticipate that the application of all other new and amendments to HKFRSs will have no material
impact on the Historical Financial Information in the foreseeable future.
– IIC-9 –
2.4 Consolidation
(a) Subsidiaries
A subsidiary is an entity (including a structured entity) over which the Target Group has control. The Target
Group controls an entity when the Target Group is exposed to, or has rights to, variable returns from its involvement
with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are
consolidated from the date on which control is transferred to the Target Group. They are deconsolidated from the
date that control ceases.
(i) Business combinations
consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the
liabilities incurred to the former owners of the acquiree and the equity interests issued by the Target Group.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are
measured initially at their fair value at acquisition date, except that:
arrangements are recognised and measured in accordance with HKAS 12 Income Taxes and
HKAS 19 Employee Benefits respectively;
payments (as defined in HKFRS 16) as if the acquired leases were new leases at the acquisition
date, except for leases for which (a) the lease term ends within 12 months of the acquisition
date; or (b) the underlying asset is of low value. Right-of-use assets are recognised and
measured at the same amount as the relevant lease liabilities, adjusted to reflect favourable or
unfavourable terms of the lease when compared with market terms.
acquisition basis. Non-controlling interests in the acquiree that are present ownership interests and entitle
their holders to a proportionate share of the relevant subsidiary’s net assets in the event of liquidation are
measured at either fair value or the present ownership interests’ proportionate share in the recognised amounts
of the acquiree’s identifiable net assets. The choice of measurement basis is made on a transaction-by-
transaction basis. All other components of non-controlling interests are measured at their fair values at
acquisition date, unless another measurement basis is required by HKFRS.
If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s
previously held equity interest in the acquiree is re-measured to fair value at the acquisition date; any gains or
losses arising from such re-measurement are recognised in profit or loss or other comprehensive income, as
appropriate.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree
and the fair value at acquisition date of any previous equity interest in the acquiree over the fair value of the
identifiable net assets acquired is recorded as goodwill. If the total of consideration transferred, non-
controlling interest recognised and previously held interest measured at fair value is less than the fair value of
the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognised directly
in the combined statements of profit or loss and other comprehensive income.
Intra-group transactions, balances and unrealised gains on transactions between group companies are
eliminated. Unrealised losses are also eliminated. When necessary, amounts reported by subsidiaries have
been adjusted to conform with the Target Group’s accounting policies.
therein, which represent present ownership interests entitling their holders to a proportionate share of net
assets of the relevant subsidiaries upon liquidation.
(ii) Changes in ownership interests in existing subsidiaries
Transactions with non-controlling interests that do not result in loss of control are accounted for as
equity transactions. The carrying amounts of the Target Group’s interests and the non-controlling interests are
adjusted to reflect the changes in their relative interests in the subsidiaries, including re-attribution of relevant
reserves between the Target Group and the non-controlling interests according to the Target Group’s and the
– IIC-10 –
non-controlling interests’ proportionate interests. Any difference between the amount by which the non-
controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly
in equity and attributed to equity holders of the Target Company.
(iii) Disposal of subsidiaries
When the Target Group ceases to have control, any retained interest in the entity is re-measured to its
fair value at the date when control is lost. The fair value is the initial carrying amount for the purposes of
subsequent accounting for the retained interest as associates, joint ventures or financial assets. A gain or loss
is recognised in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of
the consideration received and the fair value of any retained interest and (ii) the carrying amount of the assets
(including goodwill), and liabilities of the subsidiary attributable to the equity holders of the Target Company.
All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted
for as if the Target Group had directly disposed of the related assets or liabilities of the subsidiary. This may
mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.
(b) Associates
accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are accounted
for using the equity method of accounting. Under the equity method, the investment is initially recognised at cost,
and the carrying amount is increased or decreased to recognise the investor’s share of the profit or loss and other
comprehensive income of the investee after the date of acquisition. Upon the acquisition of the ownership interest in
an associate, any difference between the cost of the associate and the Target Group’s share of the net fair value of
the associate’s identifiable assets and liabilities is accounted for as goodwill.
If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate
share of the amounts previously recognised in other comprehensive income is reclassified to profit or loss.
The Target Group’s share of post-acquisition profit or loss is recognised in the combined income statement,
and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive
income with a corresponding adjustment to the carrying amount of the investment. When the Target Group’s share of
losses in an associate equals or exceeds its interest in the associate, the Target Group does not recognise further
losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.
investment in the associate is impaired. If this is the case, the Target Group calculates the amount of impairment as
the difference between the recoverable amount of the associate and its carrying value and recognises the amount in
the combined statements of profit or loss and other comprehensive income. Any impairment loss recognised is not
allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of
that impairment loss is recognised in accordance with HKAS 36 to the extent that the recoverable amount of the
investment subsequently increases.
Profits and losses resulting from upstream and downstream transactions between the Target Group and its
associates are recognised in the Target Group’s combined financial statements only to the extent of unrelated
investor’s interests in the associates. Unrealised losses are eliminated unless the transaction provides evidence of an
impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure
consistency with the policies adopted by the Target Group.
Gains or losses on dilution of equity interests in associates are recognised in the combined statements of
profit or loss and other comprehensive income.
(c) Joint ventures
The Target Group has applied HKFRS 11 to all joint arrangements. Under HKFRS 11, investments in joint
arrangements are classified as either joint operations or joint ventures depending on the contractual rights and
obligations of each investor. The Target Group has assessed the nature of its joint arrangements and determined them
to be joint ventures. Joint ventures are accounted for using the equity method.
Under the equity method of accounting, interests in joint ventures are initially recognised at cost and adjusted
thereafter to recognise the Target Group’s share of the post-acquisition profits or losses and movements in other
comprehensive income. Upon the acquisition of the ownership interest in a joint venture, any difference between the
cost of the joint venture and the Target Group’s share of the net fair value of the joint venture’s identifiable assets
and liabilities is accounted for as goodwill. When the Target Group’s share of losses in a joint venture equals or
exceeds its interests in the joint ventures (which includes any long-term interests that, in substance, form part of the
Target Group’s net investment in the joint ventures), the Target Group does not recognise further losses, unless it has
incurred obligations or made payments on behalf of the joint ventures.
– IIC-11 –
Unrealised gains on transactions between the Target Group and its joint ventures are eliminated to the extent
of the Target Group’s interest in the joint ventures. Unrealised losses are also eliminated unless the transaction
provides evidence of an impairment of the asset transferred. Accounting policies of the joint ventures have been
changed where necessary to ensure consistency with the policies adopted by the Target Group.
Items included in the financial statements of each of the Target Group’s entities are measured using the
currency of the primary economic environment in which the entity operates (the ‘‘functional currency’’). The
principal activities of the Target Group are mainly transacted in RMB and accordingly the Historical Financial
Information are presented in RMB, which is the Target Company’s functional and presentation currency.
denominated in foreign currencies are recognised in the combined income statement.
combined income statement within ‘‘finance costs’’. All other exchange gains and losses are presented in the
combined income statement within ‘‘other operating expenses’’.
assets, borrowing costs capitalised in accordance with the Target Group’s accounting policy. Depreciation of these assets
item can be measured reliably. All other repairs and maintenance are charged to the combined income statement during the
period in which they are incurred.
values.
than its estimated recoverable amount (note 2.10). Such impairment losses are recognised in the combined statements of
profit or loss and other comprehensive income.
relevant assets and are recognised in the combined statements of profit or loss and other comprehensive income.
2.7 Construction in progress and prepayments for construction of power plants
with the Target Group’s accounting policy. No provision for depreciation is made on construction in progress until such
with the policy as stated in Note 2.6 above.
Prepayments for construction of power plants represent advance payments made to contractors in connection with the
construction of the Target Group’s power plants including payments for equipment and machineries pending delivery to the
relevant power plants for installation. Such prepayments are stated at cost less accumulated impairment losses, if any.
– IIC-12 –
2.8 Intangible assets
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation
and any accumulated impairment losses. Amortisation for intangible assets with finite useful lives is recognised on a
straight-line basis over expected beneficial period. The expected beneficial period and amortisation method are reviewed at
the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
2.9 Leases
application, the Target Group assesses whether a contract is or contains a lease based on the definition under HKFRS
16 at inception, modification date or acquisition date, as appropriate. Such contract will not be reassessed unless the
terms and conditions of the contract are subsequently changed.
Target Group allocates the consideration in the contract to each lease component on the basis of the relative stand-
alone price of the lease component and the aggregate stand-alone price of the non-lease components.
Group reasonably expects that the effects on the Historical Financial Information would not differ materially from
The Target Group applies the short-term lease recognition exemption to leases of offices and equipment that
have a lease term of 12 months or less from the commencement date and do not contain a purchase option. It also
applies the recognition exemption for lease of low-value assets. Lease payments on short-term leases and leases of
low-value assets are recognised as expense on a straight-line basis or another systematic basis over the lease term.
Refundable rental deposits paid are accounted under HKFRS 9 and initially measured at fair value.
Adjustments to fair value at initial recognition are considered as additional lease payments and included in the cost
of right-of-use assets.
Right-of-use assets
. an estimate of costs to be incurred by the Target Group in dismantling and removing an underlying
– IIC-13 –
Right-of-use assets in which the Target Group is reasonably certain to obtain ownership of the underlying
the lease term.
When the Target Group obtains ownership of the underlying leased assets at the end of the lease term, upon
exercising purchase options, the carrying amount of the relevant right-of-use asset is transferred to property, plant
and equipment.
The Target Group presents right-of-use assets as a separate line item on the combined statements of financial
position.
Lease liabilities
At the commencement date of a lease, the Target Group recognises and measures the lease liability at the
Target Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the
lease is not readily determinable.
. the exercise price of a purchase option if the Target Group is reasonably certain to exercise the option;
and
. payments of penalties for terminating a lease, if the lease term reflects the Target Group exercising an
option to terminate the lease.
Variable lease payments that reflect changes in market rental rates are initially measured using the market
rental rates as at the commencement date. Variable lease payments that do not depend on an index or a rate are not
included in the measurement of lease liabilities and right-of-use assets, and are recognised as expense in the period
in which the event or condition that triggers the payment occurs.
The Target Group remeasures lease liabilities (and makes a corresponding adjustment to the related right-of-
use assets) whenever:
. the lease term has changed or there is a change in the assessment of exercise of a purchase option, in
which case the related lease liability is remeasured by discounting the revised lease payments using a
revised discount rate at the date of reassessment; and
. the lease payments change due to changes in market rental rates following a market rent review/
expected payment under a guaranteed residual value, in which cases the related lease liability is
remeasured by discounting the revised lease payments using the initial discount rate.
The Target Group presents lease liabilities as a separate line item on the combined statements of financial
position.
Lease modifications
The Target Group accounts for a lease modification as a separate lease if:
. the modification increases the scope of the lease by adding the right to use one or more underlying
assets; and
. the consideration for the leases increases by an amount commensurate with the stand-alone price for
the increase in scope and any appropriate adjustments to that stand-alone price to reflect the
circumstances of the particular contract.
– IIC-14 –
For a lease modification that is not accounted for as a separate lease, the Target Group remeasures the lease
liability based on the lease term of the modified lease by discounting the revised lease payments using a revised
discount rate at the effective date of the modification.
The Target Group accounts for the remeasurement of lease liabilities by making corresponding adjustments to
the relevant right-of-use asset. When the modified contract contains a lease component and one or more additional
leases or non-lease components, the Target Group allocates the consideration in the modified contract to each lease
component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price
of the non-lease components.
Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount.
The recoverable amounts of property, plant and equipment, right-of-use assets, and intangible assets are estimated
individually. When it is not possible to estimate the recoverable amount of an asset individually, the Target Group estimates
the recoverable amount of the cash-generating unit (‘‘CGU’’) to which the asset belongs.
In addition, the Target Group assesses whether there is indication that corporate assets may be impaired. If such
indication exists, corporate assets are also allocated to individual CGU, when a reasonable and consistent basis of allocation
can be identified, or otherwise they are allocated to the smallest Target Group of CGU for which a reasonable and
consistent allocation basis can be identified.
The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset (or a CGU) for which the
amount of the asset (or a CGU) is reduced to its recoverable amount. For corporate assets or portion of corporate assets
which cannot be allocated on a reasonable and consistent basis to a CGU, the Target Group compares the carrying amount
of a group of CGUs, including the carrying amounts of the corporate assets or portion of corporate assets allocated to that
group of CGUs, with the recoverable amount of the group of CGUs. In allocating the impairment loss, the impairment loss
is allocated first to reduce the carrying amount of any goodwill (if applicable) and then to the other assets on a pro-rata
basis based on the carrying amount of each asset in the unit or the group of CGUs. The carrying amount of an asset is not
reduced below the highest of its fair value less costs of disposal (if measurable), its value in use (if determinable) and zero.
The amount of the impairment loss that would otherwise have been allocated to the asset is allocated pro rata to the other
assets of the unit or the group of CGUs. An impairment loss is recognised immediately in profit or loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or a CGU or a group of CGUs) is
increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the
carrying amount that would have been determined had no impairment loss been recognised for the asset (or a CGU or a
group of CGUs) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
flows; and
collecting contractual cash flows; and
– IIC-15 –
that at the date of initial application of HKFRS 9/initial recognition of a financial asset the Target Group may
irrevocably elect to present subsequent changes in fair value of an equity investment in other comprehensive income
if that equity investment is neither held for trading nor contingent consideration recognised by an acquirer in a
business combination to which HKFRS 3 Business Combinations applies.
. on initial recognition it is a part of a portfolio of identified financial instruments that the Target Group
manages together and has a recent actual pattern of short-term profit-taking; or
. it is a derivative that is not designated and effective as a hedging instrument.
In addition, the Target Group may irrevocably designate a financial asset that are required to be measured at
the amortised cost or FVTOCI as measured at FVTPL if doing so eliminates or significantly reduces an accounting
mismatch.
Amortised cost and interest income
The Target Group performs impairment assessment under expected credit loss (‘‘ECL’’) model on financial
assets (including accounts receivable, note receivables, other receivables, deposits, amounts due from related parties,
debt instruments at FVTOCI, restricted deposits and cash and cash equivalents) which are subject to impairment
under HKFRS 9. The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial
recognition.
result from default events that are possible within 12 months after the reporting date. Assessment are done based on
the Target Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general
future conditions.
The Target Group always recognises lifetime ECL for accounts receivable other than accounts receivable with
significant financing components which is included in other non-current assets. The ECL on these assets are assessed
individually.
For accounts receivable with significant financing component and all other instruments, the Target Group
Target Group recognises lifetime ECL. The assessment of whether lifetime ECL should be recognised is based on
– IIC-16 –
significantly:

obligations.
Despite the foregoing, the Target Group assumes that the credit risk on a debt instrument has not increased
its contractual cash flow obligations. The Target Group considers a debt instrument to have low credit risk when it
has an internal or external credit rating of ‘‘investment grade’’ as per globally understood definitions.
than 90 days past due (except for clean energy power price premium) unless the Target Group has reasonable and
supportable information to demonstrate that a more lagging default criterion is more appropriate.
. it is becoming probable that the borrower will enter bankruptcy or other financial reorganization;
losses.
– IIC-17 –
Write-off policy
Generally the ECL is the difference between all contractual cash flows that are due to the Target Group in
. Nature of financial instruments (i.e. the Target Group’s other receivables are assessed as a separate
group. Amounts due from related parties are assessed for expected credit losses on an individual basis);
. Past-due status;
Except for debt instruments that are measured at FVTOCI, the Target Group recognises an impairment loss or
reversal in profit or loss for all financial instruments by adjusting their carrying amount, with the exception of
accounts receivable where the corresponding adjustment is recognised through a loss allowance account. For debt
instruments that are measured at FVTOCI, the loss allowance is recognised in other comprehensive income and
accumulated in the FVTOCI reserve without reducing the carrying amounts of these debt instruments. Such amount
represents the changes in the FVTOCI reserve in relation to accumulated loss allowance.
The Target Group derecognises a financial asset only when the contractual rights to the cash flows from the
asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the
asset to another entity. If the Target Group neither transfers nor retains substantially all the risks and rewards of
ownership and continues to control the transferred asset, the Target Group recognises its retained interest in the asset
and an associated liability for amounts it may have to pay. If the Target Group retains substantially all the risks and
rewards of ownership of a transferred financial asset, the Target Group continues to recognise the financial asset and
also recognises a collateralised borrowing for the proceeds received.
On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying
– IIC-18 –
Equity instruments
all of its liabilities. Equity instruments issued by the Target Group are recognised at the proceeds received, net of
direct issue costs.
Perpetual securities
Perpetual securities are classified as equity if they are non-redeemable, or redeemable only at the issuer’s
option, and any interest and distributions are discretionary. Interest and distributions on perpetual securities
classified as equity are recognised as distributions within equity.
The perpetual notes and other perpetual instruments issued by the Target Company are recognised as ‘‘Other
equity instruments’’.
All financial liabilities including bank borrowings, borrowings from related parties, other borrowings, lease
liabilities, amounts due to related parties, construction costs payable and other payables and accrued charge are
subsequently measured at amortised cost using the effective interest method.
Financial assets and liabilities are offset and the net amount reported in the statement of financial position
when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net
basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent
on future events and must be enforceable in the normal course of business and in the event of default, insolvency or
bankruptcy of the Target Group or the counterparty.
2.14 Inventories
Inventories comprise coal, oil, consumable supplies and spare parts held for consumption and usage and are stated at
the lower of cost and net realisable value after provision for obsolete items, and are expensed to fuel costs or repairs and
maintenance expense when used/consumed, or capitalised to property, plant and equipment when installed, as appropriate
using weighted average method. Cost comprises purchase price and other costs incurred in bringing the inventories to their
present location and condition and excludes borrowing costs.
recognised in the combined income statement over the period of the borrowings using the effective interest method.
Borrowings are classified as current liabilities unless the Target Group has an unconditional right to defer settlement
of the liability for at least 12 months after the end of the reporting period.
The tax expense for the year comprises current and deferred income tax. Tax is recognised in the combined income
statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In
this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.
– IIC-19 –
of reporting period in the places where the Target Group operate and generate taxable income. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is
subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to
the tax authorities.
In assessing any uncertainty over income tax treatments, the Target Group considers whether it is probable
that the relevant tax authority will accept the uncertain tax treatment used, or proposed to be use by individual group
entities in their income tax filings. If it is probable, the current and deferred taxes are determined consistently with
the tax treatment in the income tax filings. If it is not probable that the relevant taxation authority will accept an
uncertain tax treatment, the effect of each uncertainty is reflected by using either the most likely amount or the
expected value.
end of reporting period and are expected to apply when the related deferred income tax asset is realised or the
be available against which the temporary differences can be utilised.
Deferred income tax liabilities are provided on taxable temporary differences arising from investments in
subsidiaries, associates and joint ventures, except for deferred income tax liability where the timing of the reversal of
the temporary difference is controlled by the Target Group and it is probable that the temporary difference will not
reverse in the foreseeable future. Generally the Target Group is unable to control the reversal of the temporary
difference for associates. Only where there is an agreement in place that gives the Target Group the ability to control
the reversal of the temporary difference that deferred income tax liability is not recognised.
Deferred income tax assets are recognised on deductible temporary differences arising from investments in
subsidiaries, associates and joint ventures only to the extent that it is probable the temporary difference will reverse
in the future and there is sufficient taxable profits available against which the temporary difference can be utilised.
For the purposes of measuring deferred tax for leasing transactions in which the Target Group recognises the
right-of-use assets and the related lease liabilities, the Target Group first determines whether the tax deductions are
attributable to the right-of-use assets or the lease liabilities. For leasing transactions in which the tax deductions are
attributable to the lease liabilities, the Target Group applies HKAS 12 Income Taxes requirements to the leasing
transaction as a whole. Temporary differences relating to right-of-use assets and lease liabilities are assessed on a net
basis. Excess of depreciation on right-of-use assets over the lease payments for the principal portion of lease
liabilities results in net deductible temporary differences.
(c) Offsetting
2.17 Employee benefit
A defined contribution plan is a pension plan under which the Target Group pays fixed contributions into a
separate entity. The Target Group has no legal or constructive obligations to pay further contributions if the fund
periods.
For employees in Mainland China, the Target Group contributes on a monthly basis to various defined
contribution plans organised by the relevant municipal and provincial governments in the PRC based on certain
– IIC-20 –
the Target Group has no further constructive obligation for any post-retirement benefits beyond the contributions
All contributions to pension plans are fully and immediately vested and the Target Group had no unvested
The expected cost of bonus payments is recognised as a liability when the Target Group has a present legal or
constructive obligation as a result of services rendered by employees and a reliable estimate of the obligation can be
made. Liabilities of bonus plan are expected to be settled within 12 months and are measured at the amounts
2.18 Provisions
Provisions (including provisions for inundation compensation) are recognised when the Target Group has a present
legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to
settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an
outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligations
using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to
the obligation. The increase in the provision due to passage of time is recognised as interest expense.
Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is
no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the
provision shall be reversed.
reasonable assurance that the grant or subsidy will be received and the Target Group will comply with all attached
conditions.
Government grants and subsidies relating to costs are deferred and recognised in the combined income statement
over the period necessary to match them with the costs that they are intended to compensate.
projects are included in non-current liabilities as deferred income and are credited to the combined income statement on a
straight-line basis over the expected lives of the related assets and projects.
performance of the operating segments, have been identified as the directors of the Target Company and certain senior
managements that make strategic decisions.
The Target Group recognises revenue from sales of electricity to regional and provincial power grid companies and
provision of power generation. The revenue is recognised at a point in time generally when the power is transmitted to the
power grid.
The Target Group recognises revenue when (or as) a performance obligation is satisfied, i.e. when ‘‘control’’ of the
– IIC-21 –
satisfaction of the relevant performance obligation if one of the following criteria is met
. the Target Group’s performance creates and enhances an asset that the customer controls as the Target Group
performs; or
. the Target Group’s performance does not create an asset with alternative use to the Target Group and the
In determining the transaction price, the Target Group adjusts the promised amount of consideration for the
effects of the time value of money if the timing of payments agreed (either explicitly or implicitly) provides the
customer or the Target Group with a significant benefit of financing the transfer of goods or services to the
one year, the Target Group applies the practical expedient of not adjusting the transaction price for any significant
financing component.
For contracts where the Target Group transferred the associated goods or services before payments from
customers in which the Target Group adjusts for the promised amount of consideration for significant financing
components, the Target Group applies a discount rate that would be reflected in a separate financing transaction
between the Target Group and the customer at contract inception, The Target Group recognises interest income
When another party is involved in providing goods or services to a customer, the Target Group determines
whether the nature of its promise is a performance obligation to provide the specified goods or services itself (i.e. the
Target Group is a principal) or to arrange for those goods or services to be provided by the other party (i.e. the
Target Group is an agent).
The Target Group is a principal if it controls the specified good or service before that good or service is
The Target Group is an agent if its performance obligation is to arrange for the provision of the specified
good or service by another party. In this case, the Target Group does not control the specified good or service
provided by another party before that good or service is transferred to the customer. When the Target Group acts as
an agent, it recognises revenue in the amount of any fee or commission to which it expects to be entitled in exchange
for arranging for the specified goods or services to be provided by the other party.
2.22 Revenue from other sources
Rental income is recognised on a time proportion basis over the lease terms. Variable lease payments that do not
depend on an index or a rate are recognised as income in the accounting period in which they are incurred.
Service income is recognised when the relevant service is rendered.
Dividend distribution to the Target Company’s equity holders is recognised as a liability in the period in which the
dividends are approved by the Target Company’s shareholders or Directors as appropriate.
– IIC-22 –
A party is considered to be related to the Target Group if:
(ii) has a significant influence over the Target Group; or
(iii) is a member of the key management personnel of the Target Group or of a parent of the Target Group;
or
(i) the entity and the Target Group are members of the same group;
(iii) the entity and the Target Group are joint ventures of the same third party;
an entity related to the Target Group; (If the Target Group is itself a plan) and the sponsoring
to the Target Group or to the parent of the Target Group.
Estimates and judgements used in preparing the Historical Financial Information are continually evaluated and are based on
historical experience and other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
The Target Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by
adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
(i) Impairment of property, plant and equipment and right-of-use assets
Property, plant and equipment and right-of-use assets are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. The recoverable amounts have been determined
based on higher of value-in-use calculations or fair value less costs of disposal. These calculations require the use of
judgements and estimates.
Management judgement is required in the area of asset impairment particularly in assessing: (i) whether an event has
occurred that may indicate that the related asset values may not be recoverable; (ii) whether the carrying value of an asset
can be supported by the recoverable amount, being the higher of fair value less costs of disposal and net present value of
future cash flows which are estimated based upon the continued use of the asset in the business; and (iii) the appropriate
key assumptions to be applied in preparing cash flow projections including whether these cash flow projections are
discounted using an appropriate rate. Changing the assumptions selected by management in assessing impairment, including
the discount rates or the growth rate assumptions in the cash flow projections, could materially affect the recoverable
amounts.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, the carrying amounts of property, plant and equipment
are RMB675,543,000, RMB2,288,305,000, RMB3,290,290,000 and RMB3,302,375,000 respectively.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, the carrying amounts of right-of-use assets are
RMB3,659,000, RMB17,672,000, RMB190,368,000 and RMB187,805,000 respectively.
– IIC-23 –
(ii) Current and deferred income tax expenses
The Target Group is subject to income taxes in various locations within PRC. Judgement is required in determining
the provision for income taxes in each of these locations. There are transactions and calculations during the ordinary course
of business for which the ultimate tax determination is uncertain. Where the final tax outcome of these matters is different
from the amounts that were initially recorded, such differences will impact the current income tax and deferred income tax
provisions in the period in which such determination is made.
Deferred income tax assets relating to certain temporary differences and tax losses are recognised when management
considers it is probable that future taxable profits will be available against which the temporary differences or tax losses
can be utilised. When the expectation is different from the original estimate, such differences will impact the recognition of
deferred tax assets and taxation amount in the period in which such estimate is changed.
(iii) Useful lives, residual values and depreciation charges of property, plant and equipment
The Target Group’s management determines the estimated useful lives, residual values and related depreciation
charges for the Target Group’s property, plant and equipment, other than construction in progress. This estimate is based on
the historical experience of the actual useful lives and residual values of property, plant and equipment of similar nature
and functions. It could change significantly as a result of technological advancement and innovations in the power industry.
Management will adjust the depreciation charge where useful lives or residual values vary with previously estimated, or it
will write-off or write down technically obsolete. Actual economic lives may differ from estimated useful lives and actual
residual values may differ from estimated residual values. Periodic review could result in a change in depreciable lives and
residual values and therefore depreciation charges in the future periods. As at 31 December 2020, 2021 and 2022 and 31
March 2023, the carrying amount of property, plant and equipment, other than construction in progress, was
RMB563,696,000, RMB2,029,744,000, RMB2,366,332,000 and RMB3,150,737,000.
(iv) Allowance for ECLs on accounts and other receivables and deposits
The allowance for ECLs on the accounts and other receivables and deposits are estimated based on assumptions
about the risk of default and credit risk of respective receivables. The loss allowance amount is measured at the difference
between the asset’s carrying amount and the present value of estimated future cash flows with the consideration of expected
future credit loss of the respective receivables. Such assessment involves high degree of estimation and uncertainty. When
the actual future cash flows are less or more than expected, a material ECLs or material reversal of ECLs may arise,
accordingly.
ECL are measured as an allowance equal to 12-month ECL or lifetime ECL for respective receivables. An asset will
use lifetime ECL when its credit risk has increased significantly since initial recognition. HKFRS 9 does not define what
constitutes a significant increase in credit risk. In assessing whether the credit risk of an asset has significantly increased,
the Target Company takes into account quantitative and qualitative reasonable and supportable forward looking information
including available debtors’ historical data and existing and forecast market conditions.
A. Revenue
Revenue, representing turnover net of sales related taxes, recognised during the year/period is as follows:
Three months ended
2020 2021 2022 2022 2023
(unaudited)
Types of goods or services:
Sales of electricity to regional and provincial
power grid companies (Note (a)) 74,488 220,180 371,941 86,808 118,808
Energy storage revenue (Note (b)) — — — — 18,078
74,488 220,180 371,941 86,808 136,886
At a point in time 74,488 220,180 371,941 86,808 136,886
Notes:
(a) Pursuant to the power purchase agreements entered into between the Target Group and the respective regional
and provincial power grid companies, the Target Group’s sales of electricity were made to these power grid
companies at the tariff rates agreed with the respective regional and provincial power grid companies as
approved by the relevant government authorities in the PRC, and some of these tariff rates followed the
market-oriented price mechanism.
– IIC-24 –
(b) Energy storage revenue includes leasing of electricity storage capacities.
B. Segment information
The chief operating decision maker has been identified as the directors and certain senior management (collectively
referred to as the ‘‘CODM’’) who make strategic decisions. The CODM reviews the internal reporting of the Target Group
in order to assess performance and allocate resources. Management has determined the operating segments based on these
reports.
The CODM assesses the performance of the operating segments based on a measure of profit before taxation. Other
information provided to the CODM is measured in a manner consistent with that in the Historical Financial Information.
Segment assets and liabilities of the Target Group are not reported to the Target Group’s CODM management. As a
result, reportable segment assets and liabilities have not been presented in the Historical Financial Information.

Thermal Photovoltaic
Wind power power power
generation generation generation Energy Segment
business business business storage Total Unallocated Total
Segment revenue
Sales of electricity — — 74,488 — 74,488 — 74,488
Segment results — — 37,373 — 37,373 — 37,373
Unallocated expenses — — — — — (8,026) (8,026)
Operating profit — — 37,373 — 37,373 (8,026) 29,347
Finance income — — 2,446 — 2,446 31 2,477
Finance costs — — (22,944) — (22,944) — (22,944)
Profit before taxation — — 16,875 — 16,875 (7,995) 8,880
Income tax expense — — (890) — (890) — (890)
Profit for the year — — 15,985 — 15,985 (7,995) 7,990
profit or loss:
Depreciation of property, plant and equipment — — 23,041 — 23,041 — 23,041
Depreciation of right-of-use assets — — 179 — 179 — 179
Gain on recognition of negative goodwill — — 5,142 — 5,142 — 5,142
– IIC-25 –

Segment revenue
Sales of electricity 80,905 — 139,275 — 220,180 — 220,180
Segment results 70,915 — 52,325 — 123,240 — 123,240
Unallocated income — — — — — 4 4
Operating profit 70,915 — 52,325 — 123,240 (19,657) 103,583
Finance income 19 — 1,626 — 1,645 159 1,804
Finance costs (25,426) — (42,689) — (68,115) — (68,115)
Profit before taxation 45,508 — 11,262 — 56,770 (19,498) 37,272
Income tax expense — — (2,371) — (2,371) — (2,371)
Profit for the year 45,508 — 8,891 — 54,399 (19,498) 34,901
profit or loss:
Depreciation of property, plant and equipment 28,055 — 43,828 — 71,883 318 72,201
Depreciation of right-of-use assets — — 588 — 588 — 588
Gain on recognition of negative goodwill 24,978 — — — 24,978 — 24,978

Segment revenue
Sales of electricity 215,862 5,927 150,152 — 371,941 — 371,941
Segment results 120,174 2,302 49,138 — 171,614 — 171,614
Unallocated income — — — — — 15,055 15,055
Operating profit 120,174 2,302 49,138 — 171,614 (38,948) 132,666
Finance income 22 — 117 — 139 102 241
Finance costs (43,590) — (41,959) — (85,549) (13) (85,562)
Share of result of an associate — — (37) — (37) — (37)
Share of result of a joint venture — — — — — 13,224 13,224
Profit before taxation 76,606 2,302 7,259 — 86,167 (25,635) 60,532
Income tax expense (488) (12,177) (2,250) — (14,915) (9) (14,924)
Profit for the year 76,118 (9,875) 5,009 — 71,252 (25,644) 45,608
profit or loss:
Depreciation of property, plant and equipment 66,621 — 56,845 — 123,466 272 123,738
Depreciation of right-of-use assets 3,655 552 770 — 4,977 — 4,977
– IIC-26 –

Segment revenue
Sales of electricity 71,343 8,851 38,614 — 118,808 — 118,808
Energy storage revenue — — — 18,078 18,078 — 18,078
71,343 8,851 38,614 18,078 136,886 — 136,886
Segment results 42,602 5,446 (17,321) 9,396 40,123 — 40,123
Operating profit 42,602 5,446 (17,321) 9,396 40,123 (12,478) 27,645
Finance income 16 5 21 12 54 26 80
Finance costs (9,784) (680) (6,928) (3,801) (21,193) (1,987) (23,180)
Share of result of an associate — — (20) — (20) — (20)
Share of result of a joint venture — — — — — 3,725 3,725
Profit before taxation 32,834 4,771 (24,248) 5,607 18,964 (10,714) 8,250
Income tax expense (3,922) — (920) — (4,842) — (4,842)
Profit for the year 28,912 4,771 (25,168) 5,607 14,122 (10,714) 3,408
profit or loss:
Depreciation of property, plant and equipment 19,542 351 16,171 2,782 38,846 — 38,846
Depreciation of right-of-use assets 1,813 527 482 — 2,822 — 2,822
Amortisation of other intangible assets — 836 — — 836 — 836
Impairment of property, plant and equipment — — 31,926 — 31,926 — 31,926
Three months ended 31 March 2022 (Unaudited)

(unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
Segment revenue
Sales of electricity 54,873 — 31,935 — 86,808 — 86,808
Segment results 36,282 — 10,858 — 47,140 — 47,140
Operating profit 36,282 — 10,858 — 47,140 (10,455) 36,685
Finance income 7 — 14 — 21 24 45
Finance costs (8,401) — (10,767) — (19,168) (2) (19,170)
Share of result of a joint venture — — — — — (404) (404)
Profit before taxation 27,888 — 105 — 27,993 (10,837) 17,156
Income tax expense — — (34) — (34) — (34)
Profit for the year 27,888 — 71 — 27,959 (10,837) 17,122
profit or loss:
Depreciation of property, plant and equipment 14,974 — 12,687 — 27,661 — 27,661
Depreciation of right-of-use assets 913 138 193 — 1,244 — 1,244
Geographical information
No geographical segment information is presented as the Target Group’s revenue are all derived from the PRC
and the Target Group’s property, plant and equipment are all located in the PRC by physical location of assets.
– IIC-27 –
The Target Group’s major customers are regional and provincial power grid companies. For the years ended
31 December 2020, 2021 and 2022 and three months ended 31 March 2022 and 2023, the Target Group’s external
revenue amounted to RMB47,652,000, RMB125,278,000, RMB202,558,000, and RMB64,802,000 and
RMB63,595,000 was generated from six major customers, each of which accounted for 10% or more of the Target
Group’s external revenue.
For the years ended 31 December 2020, 2021 and 2022 and three months ended 31 March 2022 and 2023,
major customers who accounted for 10% or more of the Target Group’s external revenue are as follows:
Three months ended
Segment 2020 2021 2022 2022 2023
(unaudited)
Customer A Thermal power electricity, wind 29,141 44,373 # # #
power electricity and
Customer B Thermal power electricity, wind 9,832 # # # #
Customer C Thermal power electricity, wind 8,679 # # # #
Customer D Thermal power electricity, wind # 44,264 59,591 23,210 15,035
Customer E Thermal power electricity, wind # 36,641 106,080 31,663 30,482
Customer F Thermal power electricity, wind # # 36,887 9,929 18,078
47,652 125,278 202,558 64,802 63,595
# Represents that the amount of revenue from that customer is less than 10% of the total revenue of that year/
period.
5. OTHER INCOME
Three months ended
2020 2021 2022 2022 2023
(unaudited)
Rental income — — — — 1,475
Income from provision of repairs and maintenance
services — — 1,426 — 49
Income from provision of IT and other services 1,492 867 9,030 1,336 3,092
Others 2,474 — 276 19 470
3,966 867 10,732 1,355 5,086

Three months ended
2020 2021 2022 2022 2023
(unaudited)
Staff welfare 2,357 6,487 13,367 977 2,439
Pension costs — defined contribution plans 56 1,687 2,095 224 947
10,164 25,308 60,283 12,412 22,939
– IIC-28 –

Three months ended
2020 2021 2022 2022 2023
(unaudited)
Refund of value added taxes (Note) — 9 972 — 1,055
Government grants 71 19 2,985 — 3,210
Gain on recognition of negative goodwill 5,142 24,978 — — —
Profits on trading of electricity 3,176 3,966 6,704 1,332 1,538
Impairment of property, plant and equipment (Note 14) — — — — (31,926)
Others (280) — (406) — (54)
8,109 28,972 10,255 1,332 (26,177)
Note: It represents the value added taxes refunded from the relevant government authorities as an incentive for the Target
Group’s operation.

Three months ended
2020 2021 2022 2022 2023
(unaudited)
Amortisation of other intangible assets (Note 17) — — — — 836
Research and development expenses — — 9 — —
Lease expenses 1,362 3,059 3,685 255 35
Reversal of impairment of amounts due from related
parties and other receivables 1,850 2,274 3,940 551 905
Power and heat generation costs 9,642 16,184 39,139 6,481 20,431
Administrative and selling related expenses 10,580 26,143 21,868 4,114 1,017
Taxes and surcharges 82 6 453 — 48
23,516 47,666 69,094 11,401 23,272
9. OPERATING PROFIT
Operating profit is stated after charging/(crediting) the following:

Three months ended
2020 2021 2022 2022 2023
(unaudited)
Amortisation of other intangible assets (Note 17) — — — — 836
Auditor’s remuneration 445 129 383 135 —
Depreciation:
— Property, plant and equipment (Note 14) 23,041 72,201 123,738 27,661 38,846
— Right-of-use assets (Note 15) 179 588 4,977 1,244 2,822
Impairment losses included in other operating expense
— Property, plant and equipment (Note 14) — — — — (31,926)
Lease expenses:
— Transportation facilities 4 18 88 2 6
— Leasehold lands and buildings 1,358 3,041 3,597 253 29
– IIC-29 –

Three months ended
2020 2021 2022 2022 2023
(unaudited)
Finance income
Interest income from bank deposits 249 233 218 21 76
Interest income from related parties 2,228 1,571 23 24 4
2,477 1,804 241 45 80
Finance costs
Interest expense on
— bank and other borrowings 13,449 66,902 88,810 18,934 23,126
— borrowings from related parties 12,464 3,511 18,940 1,339 2,181
25,913 70,413 107,750 20,273 25,307
Less: amounts capitalised in property, plant and
equipment (2,969) (2,298) (22,188) (1,103) (2,127)
22,944 68,115 85,562 19,170 23,180
As at 31 December 2020, 2021 and 2022 and 31 March 2022 and 2023, the weighted average interest rate on capitalised
borrowings is approximately 4.46%, 4.51%, 4.29%, 4.43% and 3.51% per annum, respectively.
The provision for PRC current income tax is calculated based on the statutory tax rate of 25% on the estimated assessable
profits for the year except that certain subsidiaries were either exempted from PRC Enterprise Income Tax or entitled to the
preferential tax rate of 7.5%, 12.5% or 15%.
The amount of income tax recognised in the combined income statement represents:
Three months ended
2020 2021 2022 2022 2023
(unaudited)
Charge for the year/period 1,306 3,398 3,248 250 4,880
Over provision in prior years/period (416) (1,027) (501) (216) (38)
890 2,371 2,747 34 4,842
Deferred income tax
Charge for the year/period (Note 33) — — 12,177 — —
890 2,371 14,924 34 4,842
The income tax expense on the Target Group’s profit before taxation differs from the theoretical amount that would arise
using the income tax rate of the PRC as follows:
Three months ended
2020 2021 2022 2022 2023
(unaudited)
Less: Share of result of an associate — — 37 — 20
Share of result of a joint venture — — (13,224) 404 (3,725)
8,880 37,272 47,345 17,560 4,545
Calculated at the PRC statutory tax rate of 25% 2,220 9,318 11,836 4,390 1,136
Expenses not deductible for taxation purpose 41 812 1,501 — —
Income not subject to taxation (1,285) (6,660) — — —
Effect on tax concession (1,605) (8,870) (25,752) (7,649) (6,930)
Tax losses with no deferred income tax assets recognised 2,532 10,606 15,174 3,711 3,490
Deductible temporary differences with no deferred
income tax assets recognised — — 13,935 — 7,982
Utilisation of tax losses previously not recognised (639) (1,137) (1,449) (202) (326)
Over provision in prior years/period (416) (1,027) (501) (216) (38)
Others 42 (671) 180 — (472)
Income tax expense 890 2,371 14,924 34 4,842
– IIC-30 –
12. DIRECTORS’ AND FIVE HIGHEST PAID INDIVIDUALS
(a) Directors’ emoluments

Basic salary,
housing
allowance, other
allowances, Employer’s
bonuses and contribution to
Fees benefits in kind pension plans Total
RMB’000 RMB’000 RMB’000 RMB’000
Yan Houshan (Note (i)) — 239 38 277
Lu Jue (Note (ii)) — 864 — 864
Cai Wenzhen (Note (iii)) — 525 37 562
Liu Xiangdong (Note (i)) — — — —
Wang Qi (Note (iv)) — — — —
— 1,628 75 1,703
Fees other benefits pension plans Total
RMB’000 RMB’000 RMB’000 RMB’000
Xue Feng (Note (v)) — 772 33 805
Nie Yitao (Note (vi)) — — — —
Zhou Boxiao (Note (vii)) — — — —
— 2,329 100 2,429
RMB’000 RMB’000 RMB’000 RMB’000
Xue Feng (Note (v)) — 775 37 812
Tong Yi (Note (viii)) — 745 37 782
Li Jingtao (Note (viii)) — — — —
Lu Bibo (Note (viii)) — — — —
— 2,608 119 2,727
RMB’000 RMB’000 RMB’000 RMB’000
(unaudited)
Xue Feng (Note (v)) — 127 8 135
— 467 34 501
– IIC-31 –
RMB’000 RMB’000 RMB’000 RMB’000
Xue Feng (Note (v)) — 128 10 138
Li Jingtao (Note (viii)) — — — —
Lu Bibo (Note (viii)) — — — —
— 381 29 410
Notes:
(i) Yan Houshan and Liu Xiangdong were appointed as director with effect from 13 July 2020. The directors’
emoluments were for the services in connection with the management of the affairs of the Target Group.
(ii) Lu Jue, was appointed as director with effect from 13 July 2020 and resigned as director with effect from 23
October 2020.
(iii) Cai Wenzhen, was appointed as director with effect from 13 July 2020 and resigned as director with effect
from 8 March 2022.
(iv) Wang Qi, was appointed as director with effect from 13 July 2020 and resigned as director from 23 June
2022.
(v) Xue Feng, was appointed as director with effect from 26 July 2021. The directors’ emoluments were for the
services in connection with the management of the affairs of the Target Group.
(vi) Nie Yitao, was appointed as director with effect from 25 November 2021. The directors’ emoluments were for
the services in connection with the management of the affairs of the Target Group.
(vii) Zhou Boxiao, was appointed as director with effect from 25 November 2021 and resigned as director with
effect from 21 July 2022.
(viii) Tong Yi, Li Jingtao and Lu Bibo were appointed as director with effect from 9 March 2022, 24 June 2022 and
22 July 2022 respectively. The directors’ emoluments were for the services in connection with the
management of the affairs of the Target Group.
There was no arrangement under which a director waived or agreed to waive any remuneration for the years ended
31 December 2020, 2021 and 2022 and three months ended 31 March 2022 and 2023.
For the years ended 31 December 2020, 2021 and 2022 and three months ended 31 March 2022 and 2023, no
remuneration was paid by the Target Group to any director as an inducement to join or upon joining the Target Group or as
compensation for loss of office.
(b) Five highest paid individuals
The five individuals whose emoluments were the highest in the Target Group for the years ended 31 December 2020,
2021 and 2022 and three months ended 31 March 2022 and 2023 included 3, 3, 4, 4 and 3 directors of the Target Company.
The emoluments payable to the remaining 2, 2, 1,1 and 2 individuals for the years ended 31 December 2020, 2021 and 2022
and three months ended 31 March 2022 and 2023 are as follows:
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Basic salaries, housing allowance, other
allowances and benefits in kind 1,897 1,750 1,345 167 251
2,013 1,856 1,437 187 277
– IIC-32 –
Number of individual
Three months ended
2020 2021 2022 2022 2023
(unaudited)
Zero to HKD1,000,000 (equivalent to
RMB876,100) 2 — — 1 2
HKD1,000,000 to HKD1,500,000 (equivalent to
RMB876,100 to RMB1,314,000) — 2 1 — —
13. DIVIDENDS AND EARNINGS PER SHARE
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Final dividend recognised as distribution — 1,636 14,796 — —
No earnings per share information are presented as its inclusion, for the purpose of this report, is not meaningful.
Furniture and
Buildings and Power fixtures, tools
leasehold generators and and other Transportation Construction
improvements equipment equipment facilities in progress Total
Cost
At 1 January 2020 41,356 216,410 4,054 1,292 77,746 340,858
Additions 320 902 120 157 51,037 52,536
Acquisition of subsidiaries (Note 38) 41,768 289,482 356 34 — 331,640
Transfer — 13,745 3,191 — (16,936) —
At 31 December 2020 83,444 520,539 7,721 1,483 111,847 725,034
impairment losses
At 1 January 2020 10 25,214 778 448 — 26,450
Depreciation charge for the year 5,499 16,864 464 214 — 23,041
At 31 December 2020 5,509 42,078 1,242 662 — 49,491
Net book value
At 31 December 2020 77,935 478,461 6,479 821 111,847 675,543
Cost
At 1 January 2021 83,444 520,539 7,721 1,483 111,847 725,034
Additions 125 1,096 1,966 890 508,059 512,136
Acquisition of subsidiaries (Note 38) 19,131 1,074,683 17 — 78,996 1,172,827
Transfer 4,348 434,453 1,540 — (440,341) —
At 31 December 2021 107,048 2,030,771 11,244 2,373 258,561 2,409,997
impairment losses
At 1 January 2021 5,509 42,078 1,242 662 — 49,491
Depreciation charge for the year 3,307 66,715 1,902 277 — 72,201
At 31 December 2021 8,816 108,793 3,144 939 — 121,692
Net book value
At 31 December 2021 98,232 1,921,978 8,100 1,434 258,561 2,288,305
– IIC-33 –
Furniture and
Buildings and Power fixtures, tools
leasehold generators and and other Transportation Construction
improvements equipment equipment facilities in progress Total
Cost
At 1 January 2022 107,048 2,030,771 11,244 2,373 258,561 2,409,997
Additions 256 2,009 2,593 599 259,414 264,871
Acquisition of subsidiaries (Note 38) 33,318 159,843 315 51 667,325 860,852
Transfer 8,287 252,793 262 — (261,342) —
At 31 December 2022 148,909 2,445,416 14,414 3,023 923,958 3,535,720
impairment losses
At 1 January 2022 8,816 108,793 3,144 939 — 121,692
Depreciation charge for the year 6,687 113,655 3,030 366 — 123,738
At 31 December 2022 15,503 222,448 6,174 1,305 — 245,430
Net book value
At 31 December 2022 133,406 2,222,968 8,240 1,718 923,958 3,290,290
Cost
At 1 January 2023 148,909 2,445,416 14,414 3,023 923,958 3,535,720
Additions — — 371 — 82,486 82,857
Transfer 100,882 717,490 36,434 — (854,806) —
At 31 March 2023 249,791 3,162,906 51,219 3,023 151,638 3,618,577
impairment losses
At 1 January 2023 15,503 222,448 6,174 1,305 — 245,430
Depreciation charge for the period 2,469 35,613 649 115 — 38,846
Impairment loss — 31,926 — — — 31,926
At 31 March 2023 17,972 289,987 6,823 1,420 — 316,202
Net book value
At 31 March 2023 231,819 2,872,919 44,396 1,603 151,638 3,302,375
Notes:
(a) Depreciation of property, plant and equipment (other than construction in progress) is calculated using the straight-
line method to allocate their costs less accumulated impairment losses over their estimated useful lives to their
residual values, as follows:
Buildings 8–45 years

Leasehold improvements 1–3 years
Furniture and fixtures, tools and other equipment 5–18 years
(b) As at 31 December 2020, 2021 and 2022 and 31 March 2023, property, plant and equipment amounting to
approximately RMB487,557,000, RMB883,709,000, RMB680,271,000 and RMB671,172,000 were pledged as
securities for certain other borrowings and borrowings from related parties of the Target Group (Notes 30(c) and
31(d)).
(c) For the three months ended 31 March 2023, management has performed impairment assessment on certain property,
plant and equipment with impairment indication included in ‘‘Wind power electricity generation’’ segment and an
impairment loss of RMB31,926,000 was recognised.
The recoverable amounts of the associated CGUs had been determined based on value in use calculations. These
calculations use pretax cash flow projections based on financial budgets approved by management for the purposes
of impairment assessment covering a five-year period. Annual cash flows beyond the five-year period are expected to
be similar to that of the fifth year based on the current production capacity, taking into account of the expected
remaining useful lives of the relevant underlying operating assets. Management prepared the financial budgets taking
into account of the actual and prior years’ performance and market development expectations. The growth rates in
electricity sold and pre-tax discount rates used for value in use calculations was 0% and from 6.96% to 7.64%
respectively. Management estimates the growth rates in electricity sold by reference to the expected demand for
electricity in the regions where the power plants are located. In addition, management estimates the discount rates
using pre-tax rate that reflects market assessments of the time value of money and the specific risks relating to the
CGUs. Other key assumptions applied in the impairment assessment include the expected tariff rates, fuel costs and
staff costs.
– IIC-34 –
Leasehold Transportation
lands Buildings facilities Total
RMB’000 RMB’000 RMB’000 RMB’000
Cost
At 1 January 2020 — — — —
Additions 2,565 — — 2,565
Acquired on acquisitions of subsidiaries (Note 38) 1,273 — — 1,273
At 31 December 2020 3,838 — — 3,838
At 1 January 2020 — — — —
Depreciation charge for the year 179 — — 179
At 31 December 2020 179 — — 179
Net book value
At 31 December 2020 3,659 — — 3,659
Expenses relating to short-term leases and other
leases with lease terms end within 12 months 1,358
Expenses relating to leases of low-value assets,
excluding short-term leases of low value assets 4
Total cash outflow for leases 3,927
Additions to right-of-use assets 3,838
Cost
At 1 January 2021 3,838 — — 3,838
Additions 5,075 — — 5,075
At 31 December 2021 18,439 — — 18,439
At 1 January 2021 179 — — 179
Depreciation charge for the year 588 — — 588
At 31 December 2021 767 — — 767
Net book value
At 31 December 2021 17,672 — — 17,672
– IIC-35 –
Leasehold Transportation
lands Buildings facilities Total
RMB’000 RMB’000 RMB’000 RMB’000
Cost
At 1 January 2022 18,439 — — 18,439
Additions 12,771 56,241 2,476 71,488
At 31 December 2022 137,395 56,241 2,476 196,112
At 1 January 2022 767 — — 767
Depreciation charge for the year 4,426 502 49 4,977
At 31 December 2022 5,193 502 49 5,744
Net book value
At 31 December 2022 132,202 55,739 2,427 190,368
Cost
At 1 January 2023 137,395 56,241 2,476 196,112
At 31 March 2023 137,654 56,241 2,476 196,371
At 1 January 2023 5,193 502 49 5,744
Depreciation charge for the period 2,295 502 25 2,822
At 31 March 2023 7,488 1,004 74 8,566
Net book value
At 31 March 2023 130,166 55,237 2,402 187,805
For the period ended 31 March 2023
leases with lease terms end within 12 months 29
Additions to right-of-use assets 259
Note:
During the years ended 31 December 2020, 2021 and 2022 and three months ended 31 March 2023, the Target Group leases
leasehold lands, buildings and transportation facilities for its operations. Lease contracts are entered into for fixed term of 5
to 28 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. In
determining the lease term and assessing the length of the non-cancellable period, the Target Group applies the definition of
a contract and determines the period for which the contract is enforceable.
The Target Group regularly entered into short-term leases for transportation facilities. As at 31 December 2020, 2021 and
2022 and 31 March 2023, the portfolio of short-term leases is similar to the portfolio of short-term leases to which the
short-term lease expense was recognised and disclosed in Note 9.
16. PREPAYMENTS FOR CONSTRUCTION OF POWER PLANTS
construction of the Target Group’s power plants including payments for equipment and machinery pending delivery to the relevant
power plants for installation.
As at 31 December 2022 and 31 March 2023, the balance of prepayments for construction of power plants includes an
amount of RMB46,287,000 and RMB30,943,000, which was prepayments to related parties (companies controlled by SPIC other
than SPIC Financial Company Limited (‘‘SPIC Financial’’), associates and non-controlling shareholders of subsidiaries) for
construction of power plants.
– IIC-36 –
17. OTHER INTANGIBLE ASSETS
As at As at
31 December 31 March
2022 2023
RMB’000 RMB’000
Cost
At beginning of year/period — 280,909
Additions 280,909 —
At the end of the year/period 280,909 280,909
At beginning of year/period — —
Amortisation charge for the year/period — 836
At the end of the year/period — 836
Net book value
At the end of the year/period 280,909 280,073
Other intangible assets represent the carrying amount of the franchise rights. These intangible assets have finite useful lives
and are amortised on a straight-line basis over the period of 28 years.
18. INTEREST IN AN ASSOCIATE
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Cost of investment in an associate — — 84 84
Share of undistributed post- acquisition reserves — — (37) (57)
— — 47 27
There are no contingent liabilities relating to the Target Group’s interest in the associate and the associate did not have any
material contingent liabilities as at 31 December 2022 and 31 March 2023.
No dividend was received from an associate for the year ended 31 December 2022 and three months ended 31 March 2023.
The followings are the details of the associate as at 31 December 2022 and 31 March 2023:
Proportion of
Place of ownership
establishment Registered/ interest held by
Name of company and operation paid-up capital the Target Group Principal activities
Zhang Zhou Huan Dian New Energy Co., Ltd. The PRC RMB5,000,000/ 15% Generation and sale of
(漳州煥電新能源科技有限公司) (Note) RMB83,388 electricity
Note: Zhang Zhou Huan Dian New Energy Co., Ltd. was considered as an associate of the Target Group because the
Target Group has virtue of the contractual right to appoint 1 out of the 5 directors to the board of directors of that
company.
The above associate was not individually material to the Target Group.
19. INTEREST IN A JOINT VENTURE
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Unlisted investment, at cost — — 200,000 200,000
Share of undistributed post- acquisition reserves — — 13,224 16,949
— — 213,224 216,949
– IIC-37 –
The followings are the details of the joint venture as at 31 December 2022 and 31 March 2023:
Proportion of ownership interest Held by

the Target Group
Place of
establishment Registered/ Principal As at
Name of company and operation paid-up capital activities As at 31 December 31 March
2020 2021 2022 2023
Shenzhen Feng He Energy Investment Co., The PRC RMB580,000,000/ Generation — — 50% 50%
Ltd. (深圳峰和能源投資有限公司) RMB200,000,000 and sale of
(‘‘Shenzhen Feng He’’) electricity
There are no contingent liabilities relating to the Target Group’s interest in the joint venture and the joint venture did not
have any material contingent liabilities as at 31 December 2022 and 31 March 2023.
Summarised statements of financial position
As at As at
2022 2023
RMB’000 RMB’000
Non-current assets 329,751 328,506
Current assets 869,740 848,450
Non-current liabilities (7,217) (6,230)
Current liabilities (603,479) (568,754)
Net assets 588,795 601,972
Summarised statements of profits or loss and other comprehensive income
Year ended Three months ended

2022 2022 2023
RMB’000 RMB’000 RMB’000
(unaudited)
Revenue 465,968 80,840 105,199
Profit/(loss) and total comprehensive income/(expense) for the year/period 58,539 (1,518) 13,177
Dividend received from Shenzhen Feng He — — —
Reconciliation of the above summarised financial information to the carrying amount of the interest in a joint venture
recognised in the Historical Financial Information:
As at As at
2022 2023
RMB’000 RMB’000
Net assets of Shenzhen Feng He 588,795 601,972
Less: non-controlling interests of Shenzhen Feng He (162,347) (168,075)
426,448 433,897
Proportion of the Target Group’s ownership 50% 50%
Carrying amount of the Target Group’s interest in Shenzhen Feng He 213,224 216,949
20. INVENTORIES
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Spare parts and consumables 91 115 368 1,186
– IIC-38 –
21. ACCOUNTS RECEIVABLE
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Accounts receivable from regional and provincial power grid
companies (Note (b)) 183,948 301,351 349,329 412,923
Accounts receivable from other companies (Note (b)) 2,187 1,544 120,308 133,515
186,135 302,895 469,637 546,438
Notes receivable (Note (c)) — 368 5,925 1,000
186,135 303,263 475,562 547,438
Notes:
(a) To measure the ECL of accounts receivable has been assessed individually. The loss allowance of the accounts
receivable as at 31 December 2020, 2021 and 2022 and 31 March 2023 was considered insignificant, please refer to
note 37.2 (b) for details of credit risk assessment.
(b) The ageing analysis of accounts receivable based on invoice date is as follows:
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Unbilled 185,838 293,292 469,514 522,562
1 to 3 months 297 9,603 123 23,876
186,135 302,895 469,637 546,438
As at 31 December 2020, 2021 and 2022 and 31 March 2023, accounts receivable from regional and provincial
power grid companies include clean energy power price premium receivable of RMB185,838,000, RMB293,292,000,
RMB469,514,000 and RMB522,562,000, which is unbilled.
The clean energy power price premium, which is a component of the government-approved on-grid tariff for wind
and photovoltaic power generation, is recognised as revenue from sales of electricity in the combined statements of
profit or loss and other comprehensive income of the Target Group for its wind and photovoltaic power projects.
(c) As at 31 December 2020, 2021, and 2022 and 31 March 2023, notes receivable were bank acceptance notes issued by
third parties and were normally with a maturity period of 360, 360, 360 and 360 days.
(d) As at 31 December 2020, 2021 and 2022 and 31 March 2023, accounts receivable amounting to approximately
RMB136,191,000, RMB206,493,000, RMB370,617,000 and RMB436,061,000 are pledged as securities for certain
bank borrowings, other borrowings and borrowings from related parties of the Target Group (Note 29(d), 30(c) and
31(d)).
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Prepayments 3,805 3,612 4,560 14,310
Deductible valued-added tax 81,713 129,153 200,801 198,217
Others 15,206 14,229 22,415 26,260
131,865 198,496 295,497 317,923
– IIC-39 –
23. AMOUNTS DUE FROM/(TO) RELATED PARTIES
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Amounts due from companies controlled by SPIC (Note (a)) 55,201 3,321 3,339 3,495
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Amounts due to companies controlled by SPIC (Note (b)) 6 651 645 5,354
Note:
(a) The amounts due from companies controlled by SPIC are unsecured, interest-free and repayable on demand, except
for balances of RMB40,275,000 and RMB14,822,000 which is interest bearing at 5% and 1.5% per annum
respectively as at 31 December 2020 and a balance of RMB2,923,000, RMB2,923,000 and RMB2,923,000 which is
interest bearing at 1.50%, 1.50% and 1.50% per annum as at 31 December 2021 and 2022 and 31 March 2023
respectively.
(b) The amounts due to related parties are unsecured, interest-free and repayable on demand.
24. RESTRICTED DEPOSITS
Restricted deposits are all restricted cash deposits. As at 31 December 2020, the restricted deposits of the Target Group are
interest bearing from 1.3% to 1.5% per annum.
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Cash at banks and in hand (Note (a)) 6,143 7,872 12,131 6,140
Deposit at SPIC Financial (Note (b)) 56,363 64,750 141,965 105,210
62,506 72,622 154,096 111,350
Notes:
(a) As at 31 December 2020, 2021 and 2022 and 31 March 2023, the Target Group’s cash at banks are interest bearing
0.30%, 0.30%, 0.25% and 0.25% per annum, respectively.
(b) As at 31 December 2020, 2021 and 2022 and 31 March 2023, the Target Group’s deposit at SPIC Financial are
interest bearing at 0.35%, 0.35%, 0.35% and 0.35% per annum, respectively.
(c) As at 31 December 2020, 2021 and 2022 and 31 March 2023, the Target Group’s cash and cash equivalents
denominated in RMB of RMB62,506,000, RMB72,622,000, RMB154,096,000 and RMB111,350,000 are deposited at
banks and SPIC Financial.
26. PAID-IN CAPITAL
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
At 1 January — 35,500 434,910 895,124
Capital injection 35,500 399,410 460,214 —
At 31 December/31 March 35,500 434,910 895,124 895,124
– IIC-40 –
On 19 December 2022, the Target Company entered into the perpetual debt investment contract with Bridge Trust Co., Ltd.
(a subsidiary of SPIC). The Target Group has received RMB100,000,000 perpetual debts with an initial interest rate ranging from
3.18% to 6% per annum.
During the year ended 31 December 2022 and three months ended 31 March 2023, the profit attributable to holders of other
equity instruments, based on the applicable interest rate, was RMB514,000 and RMB795,000 respectively.
28. STATEMENT OF FINANCIAL POSITION AND RESERVES OF THE TARGET COMPANY
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
ASSETS
Non-current assets
Property, plant and equipment 680 1,943 3,834 3,611
Investments in subsidiaries 195,309 520,940 686,902 687,825
Interest in a joint venture — — 213,224 216,949
195,989 522,883 903,960 908,385
Current assets
Inventories — 19 — —
Amounts due from subsidiaries 33,804 171,362 633,114 623,283
49,926 202,958 685,762 644,678
Total assets 245,915 725,841 1,589,722 1,553,063
EQUITY
Paid-in capital 35,500 434,910 895,124 895,124
Other equity instruments — — 100,514 101,309
Reserves (note) 208,812 207,205 34,449 23,733
Total equity 244,312 642,115 1,030,087 1,020,166
LIABILITIES
Current liabilities
Amounts due to subsidiaries — 71,381 275,716 275,570
Borrowings from related parties — — 260,000 230,000
Total liabilities 1,603 83,726 559,635 532,897
Total equity and liabilities 245,915 725,841 1,589,722 1,553,063
Net current assets 48,323 119,232 126,127 111,781
Total assets less current liabilities 244,312 642,115 1,030,087 1,020,166
– IIC-41 –
Note:
Movements in the Target Company’s reserves

Capital Accumulated
reserve losses Total
RMB’000 RMB’000 RMB’000
At 14 April 2020 (date of incorporation) — — —
Capital re-organisation on subsidiaries 216,797 — 216,797
At 31 December 2020 and 1 January 2021 216,797 (7,985) 208,812
Profit and total comprehensive income for the year — 28 28
Dividends recognised as distribution — (1,635) (1,635)
Loss and total comprehensive expense for the year — (25,779) (25,779)
Capital re-organisation on subsidiaries (131,667) — (131,667)
Profit attributable to holders of other equity instruments — (514) (514)
Dividends recognised as distribution — (14,796) (14,796)
Profit attributable to holders of other equity instruments — (795) (795)
At 31 March 2023 85,130 (61,397) 23,733
At 1 January 2022 (audited) 216,797 (9,592) 207,205
Others (2,180) — (2,180)
At 31 March 2022 (unaudited) 214,617 (18,382) 196,235
29. BANK BORROWINGS

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Non-current
Long-term bank borrowings, secured (Note (a)) 13,520 615,112 1,224,774 1,772,934
Long-term bank borrowings, unsecured 49,386 78,108 22,689 32,042
62,906 693,220 1,247,463 1,804,976
Less: Current portion of long-term borrowings
— secured bank borrowings 520 37,475 98,197 85,342
— unsecured bank borrowings 49,386 1,408 2,606 3,645
49,906 38,883 100,803 88,987
13,000 654,337 1,146,660 1,715,989
Current
Current portion of long-term borrowings 49,906 38,883 100,803 88,987
Total bank borrowings 62,906 693,220 1,247,463 1,804,976
Notes:
(a) The carrying amounts of the Target Group’s bank borrowings are denominated in RMB.
(b) The repayment terms of the long-term bank borrowings are analysed as follows
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Within one year 49,906 38,883 100,803 88,987
Over five years 6,680 360,348 606,359 1,004,846
62,906 693,220 1,247,463 1,804,976
– IIC-42 –
(c) The effective interest rates per annum of the Target Group’s bank borrowings are as follows:
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Long-term bank borrowings (including current
portion) 4.48% 4.73% 4.23% 4.34%
As at 31 December 2020, 2021 and 2022 and 31 March 2023, all bank borrowings of the Target Group are in
floating rates.
(d) Secured long-term bank borrowings are secured by accounts receivable with carrying amounts of approximately
RMB13,520,000, RMB615,112,000, RMB1,224,774,000 and RMB1,772,934,000 as at 31 December 2020, 2021 and
2022 and 31 March 2023 (Note 21(d)).
(e) As at 31 December 2020, 2021 and 2022 and 31 March 2023, the Target Group had available unutilised banking
facilities amounting to approximately RMBnil, RMB394,693,000, RMB1,252,237,000 and RMB1,381,758,000
respectively.
(f) The fair values of long-term bank borrowings at floating interest rates approximate their carrying amounts.
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Non-current
Long-term other borrowings from third parties (Note (b)) 278,281 949,318 847,089 706,692
from third parties 842 43,618 119,375 110,654
277,439 905,700 727,714 596,038
Current
Current portion of long-term borrowings from third
parties 842 43,618 119,375 110,654
Total other borrowings 278,281 949,318 847,089 706,692
Notes:
(a) The carrying amounts of the Target Group’s other borrowings are denominated in RMB.
(b) As at 31 December 2020, 2021 and 2022 and 31 March 2023, the balance are secured, interest bearing at floating
rate ranging from 4.60% to 4.65%, 4.07% to 5.60%, 4.07% to 4.8%, and 4.07% to 4.80% per annum, respectively.
(c) Other borrowings are secured by property, plant and equipment and accounts receivable with carrying amounts of
approximately RMB278,281,000, RMB949,318,000, RMB847,089,000 and RMB706,692,000 as at 31 December
2020, 2021 and 2022 and 31 March 2023 (Note 14(b) and 21(d)).
– IIC-43 –
31. BORROWINGS FROM RELATED PARTIES

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Non-current
Long-term borrowings from SPIC Financial (Note (b)) 121,200 40,500 56,500 48,460
Long-term borrowings from other related parties (Note (c)) 133,001 112,481 346,275 —
254,201 152,981 402,775 48,460
— from SPIC Financial 88,000 — 20,000 20,000
— from other related parties — 28,038 24,023 —
88,000 28,038 44,023 20,000
166,201 124,943 358,752 28,460
Current
Short-term borrowings from SPIC Financial 40,000 — 260,000 230,000
Current portion of long-term borrowings from SPIC Financial 88,000 — 20,000 20,000
Current portion of long-term borrowings from other related parties — 28,038 24,023 —
128,000 28,038 304,023 250,000
Total borrowings 294,201 152,981 662,775 278,460
Notes:
(a) The carrying amounts of the Target Group’s borrowings from related parties are denominated in RMB.
(b) As at 31 December 2020, 2021 and 2022 and 31 March 2023, the borrowings from SPIC Financial are unsecured,
interest bearing at floating rate ranging from 4.28% to 5%, 4% to 5.5%, 3.45% to 5.5% and 3.45% to 5.5% per
annum, respectively.
The repayment terms of these borrowings are analysed as follows:

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Within one year 128,000 28,038 304,023 250,000
Between two and five years 20,000 16,000 13,000 —
Over five years 133,001 88,943 329,752 7,500
294,201 152,981 662,775 278,460
(c) As at 31 December 2020, 2021 and 2022 and 31 March 2023, the borrowings from other related parties are secured,
interest bearing at floating rate from 4.40% to 4.65%, 4.40% to 4.65%, 5% and nil per annum, respectively.
(d) Long-term borrowings from other related parties are secured by property, plant and equipment and accounts
receivable with carrying amounts of approximately RMB133,001,000, RMB112,481,000, RMB346,275,000 and
RMBnil as at 31 December 2020, 2021 and 2022 and 31 March 2023 (Note 14(b) and 21(d)).
(e) As at 31 December 2020, 2021 and 2022 and 31 March 2023, the Target Group available unutilised facilities from
SPIC Financial amounting to approximately RMBnil, RMB195,500,000, RMB350,500,000 and RMB350,500,000,
respectively.

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Lease liabilities payable:
Within one year — — 37,892 19,543
Less: Amounts payable within 12 months shown under current liabilities — — — —
Amounts payable after 12 months shown under non-current liabilities — — 37,892 19,543
The lease liabilities are repayable on demand.
– IIC-44 –
33. DEFERRED TAXES LIABILITIES
Deferred income taxes are calculated in respect of temporary differences under the liability method using the tax rates
enacted or substantively enacted by the end of each financial reporting period during the Relevant Periods.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current income tax
assets against current income tax liabilities and when the deferred income taxes relate to the same taxation authority. The
following amounts, determined after appropriate offsetting, are shown in the combined statements of financial position:
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Deferred income tax liabilities — — (12,177) (12,177)
Notes:
(a) The net movements in the deferred income tax liabilities during the year/period, without taking into consideration the
offsetting of balances within the same tax jurisdiction, are as follows:
Right-of-use assets/
lease liabilities Total
RMB’000 RMB’000
At 1 January 2020, 31 December 2020, 31 December 2021 and 1
January 2022 — —
Charged to profit or loss (Note 11) (12,177) (12,177)
At 31 December 2022 and 31 March 2023 (12,177) (12,177)
(b) Deferred tax assets are recognised for tax losses carry forward to the extent that the realisation of the related tax
benefit through future taxable profits is probable. As at 31 December 2020, 2021 and 2022 and 31 March 2023, the
Target Group had unrecognised tax losses to be carried forward against future taxable profits amounting to
RMB86,892,000, RMB124,768,000, RMB179,668,000 and RMB192,324,000 respectively, which will expire within
five years.
(c) As at 31 December 2020, 2021 and 2022 and 31 March 2023, the Target Group has deductible temporary differences
of RMBnil, RMBnil, RMB55,738,000 and RMB87,664,000. No deferred tax asset has been recognised in relation to
such deductible temporary difference as it is not probable that taxable profit will be available against which the
deductible temporary differences can be utilised.
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Salaries and staff welfare payable — 431 3,933 9,412
Value added tax payable 305 329 15,951 16,211
Other taxes payable 467 1,748 2,231 1,196
Dividend payable — 45 — —
Interest payable 180 8 297 258
Service fee payable 340 2,064 1,857 3,034
58,126 112,461 167,461 175,878
– IIC-45 –
35. NOTES TO THE COMBINED STATEMENTS OF CASH FLOWS
(a) Reconciliation of profit before taxation to cash (used in)/generated from operating activities
Year ended 31 December Three months 31 March

2020 2021 2022 2022 2023
(unaudited)
Adjustments for:
Share the result of an associate — — 37 — 20
Share the result of a joint venture — — (13,224) 404 (3,725)
Finance income (2,477) (1,804) (241) (45) (80)
Finance costs 22,944 68,115 85,562 19,170 23,180
Depreciation of property, plant and equipment
(Note 14) 23,041 72,201 123,738 27,661 38,846
Depreciation of right-of-use Assets (Note 15) 179 588 4,977 1,244 2,822
Amortisation of intangible Assets (Note 17) — — — — 836
Impairment loss of property, plant and
equipment (Note 14) — — — — 31,926
Gain on recognition of negative Goodwill (5,142) (24,978) — — —
Operating cash flows before working capital
changes 47,425 151,394 261,381 65,590 102,075
(Increase)/decrease in Inventories — (24) (253) 24 (818)
Increase in accounts receivable (38,677) (53,701) (79,297) (47,111) (71,876)
Decrease/(increase)in prepayments, deposits and
other receivables 54,244 (9,351) 130,309 (40,445) (22,426)
(Increase)/decrease in amounts due from related
parties (55,096) 51,880 (18) 2,923 (156)
Increase/(decrease) in other payables and
accrued charges 16,787 (17,384) (3,234) 24,429 8,417
Increase/(decrease) in amounts due to related
parties — 645 (6) — 4,709
(Decrease)/increase in deferred income (18) — 4,000 — 761
Cash generated from operations 24,665 123,459 312,882 5,410 20,686
Interest paid (22,936) (68,115) (85,547) (19,170) (23,180)
Profit tax paid (434) (655) (3,318) (1,789) (1,588)
Net cash generated from/(used in) operating
activities 1,295 54,689 224,017 (15,549) (4,082)
– IIC-46 –
(b) Analysis of changes in financing activities during the year/period
Bank
borrowings and Borrowings
other from related
borrowings parties Leases liabilities
RMB’000 RMB’000 RMB’000
At 1 January 2020 295,084 — —
Drawdown of bank borrowings 283,028 — —
Repayment of bank borrowings (507,822) — —
Drawdown of other borrowings 118,435 — —
Repayment of other borrowings (147,003) — —
Drawdown of borrowings from related parties — 294,201 —
Repayment of borrowings from related parties — — —
Acquisitions of subsidiaries (Note 38) 299,465 — —
At 31 December 2020 and 1 January 2021 341,187 294,201 —
Repayment of borrowings from related parties — (161,720) —
Acquisitions of subsidiaries (Note 38) 727,632 — —
At 31 December 2021 and 1 January 2022 1,642,538 152,981 —
Repayment of other borrowings (1,070,213) — —
Drawdown of borrowings from related parties — 1,007,811 —
Addition of lease liabilities — — 58,717
Payments for lease liabilities — — (20,825)
Acquisitions of subsidiaries (Note 38) 1,002,227 — —
At 31 December 2022 and 1 January 2023 2,094,552 662,775 37,892
Drawdown of other borrowings — — —
Drawdown of borrowings from related parties — — —
At 31 March 2023 2,511,668 278,460 19,543
– IIC-47 –
36. COMMITMENTS
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Contracted but not provided for in respect
of property, plant and equipment 8,499 684,004 437,437 342,796

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Financial assets
Financial assets at amortised cost 338,983 430,708 700,718 741,419
Financial liabilities at amortised cost 828,125 2,117,250 3,267,463 3,309,661
The Target Group’s activities expose it to a variety of financial risks: interest rate risks, credit risk and liquidity risk.
The Target Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on the Target Group’s financial performance.
(a) Interest rate risks
The Target Group’s income and operating cash flows are substantially independent of changes in market
interest rates. The Target Group’s interest-bearing assets mainly include amounts due from related parties and cash at
banks and deposits at SPIC Financial, details of which have been disclosed in Note 23 and 25. The Target Group’s
exposure to changes in interest rates is mainly attributable to its borrowings and lease liabilities, details of which
have been disclosed in Notes 29 to 32. Borrowings carried at floating rates expose the Target Group to cash flow
interest rate risk whereas borrowings and lease liabilities carried at fixed rates expose the Target Group to fair value
interest rate risk, details of which have been disclosed in Notes 29 to 32. The Target Group has not used any specific
interest rate swap contracts to hedge its exposure to interest rate risk.
The Target Group’s cash flow interest rate risk is mainly concentrated on the fluctuation of People’s Bank of
China interest rate arising from the Target Group’s RMB denominated floating rate bank borrowings.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, if the interest rates on bank and other
borrowings and borrowings from related parties had been 50 basis points higher/lower than the prevailing interest
rates, with all other variables held constant, post-tax profit for the year/period (net of interest capitalised) would
have been RMB2,383,000, RMB6,733,000, RMB10,340,000, and RMB10,463,000 for the years 31 December 2020,
2021 and 2022 and three months ended 31 March 2023 lower/higher mainly as a result of higher/lower interest
expense on floating rate bank borrowings, other borrowings and borrowings from related parties.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, if the interest rates on cash at banks and
deposits at SPIC Financial had been 50 basis points higher/lower than the prevailing interest rates, with all other
variables held constant, post-tax profit for the year would have been RMB234,000, RMB272,000, RMB578,000, and
RMB418,000 for the years 31 December 2020, 2021 and 2022 and three months 31 March 2023 higher/lower mainly
as a result of higher/lower interest income on floating rate cash at banks and deposits at SPIC Financial.
Total interest income from financial assets that are measured at amortised cost is as follows:
2020 2021 2022 2021 2022
(unaudited)
Interest income:
Cash and cash equivalents 249 233 218 21 76
Amounts due from related parties 2,228 1,571 23 24 4
Total interest income 2,477 1,804 241 45 80
– IIC-48 –
Interest expense on financial liabilities not measured at FVTPL:

2020 2021 2022 2021 2022
(unaudited)
Interest expense on financial liabilities
at amortised cost 22,944 68,115 85,562 19,170 23,180
The Target Group’s credit risk primarily arises from accounts receivable (Note 21), deposits and other
receivables (Note 22), restricted deposits (Note 24) and cash and cash equivalents (Note 25). The Target Group does
not hold any collateral or other credit enhancements to cover its credit risks associated with its financial assets.
Accounts receivable arising from contracts with customers
which therefore takes a relatively longer time for settlement. The Target Group only accepts bills issued or
guaranteed by reputable PRC banks if accounts receivables are settled by bills and therefore the management
of the Target Group considers the credit risk arising from the endorsed or discounted bills is insignificant.
The Target Group normally does not require collaterals from trade debtors. In addition, the Target Group
individually. Ageing analysis of the Target Group’s accounts receivable is disclosed in Note 21 and
management does not expect any losses from non-performance by these counterparties.
Deposits and other receivables and amounts due from related parties
The counterparties of the Target Group’s deposits, other receivables and amounts due from related
parties are mainly large state-owned enterprises with good credit quality and subsidiaries of SPIC. Under ECL
model upon application of HKFRS 9, management makes periodic collective assessment as well as individual
assessment on the recoverability of all loans and receivables, based on historical payment records, the length
of the overdue period, the financial strength of the debtors and whether there are any disputes with the
relevant debtors. The counterparties of the Target Group’s deposits and other receivables, amounts due from
related parties are mainly large state-owned enterprises with good credit quality and subsidiaries of SPIC.
Under ECL model upon application of HKFRS 9, management makes periodic collective assessment as well
as individual assessment on the recoverability of all receivables, based on historical payment records, the
length of the overdue period, the financial strength of the debtors and whether there are any disputes with the
relevant debtors. The Target Group assessed the ECL for the receivables are insignificant and thus no loss
allowance is recognised.
Restricted deposits and cash and cash equivalents
Substantially all of the Target Group’s cash and deposits are held in major financial institutions and
SPIC Financial, which management believes are of high credit quality. Therefore, the Target Group performs
impairment assessment under 12m ECL model upon application of HKFRS 9 on restricted deposits and cash
and cash equivalents on collective basis. Management does not expect any losses from non-performance by
these counterparties.
– IIC-49 –
The tables below detail the credit risk exposures of the Target Group’s financial assets, including
accounts receivable, deposits and other receivables, amounts due from related parties, restricted deposits and
cash and cash equivalents, which are subject to ECL assessment:
Gross carrying amount

External Internal
credit credit 12m ECL or As at
Notes rating rating lifetime ECL As at 31 December 31 March
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Financial assets at amortised cost:
Restricted deposits 24 A1 (Note (i)) 12m ECL 4,000 — — —
Cash and cash 25 A1 (Note (i)) 12m ECL 62,506 72,622 154,096 111,350
equivalents
Deposits and other 22 N/A (Note 12m ECL 31,141 51,502 67,721 79,136
receivables (iii))
Accounts receivable 21 A1 (Note (iv)) Lifetime ECL 186,135 302,895 469,637 546,438
(not credit
impaired)
Notes receivable 21 A1 (Note (iv)) 12m ECL — 368 5,925 1,000
Amounts due from 23 N/A (Note (ii)) 12m ECL 55,201 3,321 3,339 3,495
related parties
Notes:
(i) Restricted deposits and cash and cash equivalents:
12m ECL model for restricted deposits and cash and cash equivalents, and concluded that there
has been no significant increase in credit risk since initial recognition. Since the counterparties
are in major financial institutions with high credit ratings assigned by international credit-rating
agencies, the probability of defaults of the counterparties are insignificant and accordingly, no
allowance for credit losses is provided for these financial assets.
(ii) Amounts due from related parties:
to assess whether credit risk has increased significantly since initial recognition. The
management assessed no past due situation based on historical payment, therefore concluded
that these receivables have low credit risk and remote possibility of default.
Not past
due/No fixed
repayment
RMB’000 RMB’000 RMB’000
At 31 December 2020 — 55,201 55,201
At 31 December 2021 — 3,321 3,321
At 31 December 2022 — 3,339 3,339
At 31 March 2023 — 3,495 3,495
For all amounts due from related parties, the Target Group measures the loss allowance equal to
12m ECL, unless when there has been a significant increase in credit risk since initial
recognition or the financial instrument is not determined to have low credit risk at the reporting
date, the Target Group recognises lifetime ECL. The assessment of whether lifetime ECL should
be recognised is based on significant increases in the likelihood or risk of a default occurring
since initial recognition. The estimated loss rates are estimated based on historical observed
default rates over the expected life of the debtors and are adjusted for forward-looking
information that is available without undue costs or effort.
– IIC-50 –
(iii) Deposits and other receivables:
to assess whether credit risk has increased significantly since initial recognition.
The Target Group’s internal credit risk grading assessment comprises the following categories:
Internal
credit rating Description Deposits and other receivables
A The counterparties can honor the terms of 12m ECL
the contracts. There is no reason to doubt
their ability to fulfill the payment on a
timely basis.
B The counterparties frequently repay after due 12m ECL
dates but usually settle after due date.
C The counterparties cannot repay in full and Lifetime ECL (not credit-
there has been a significant increase in impaired)
credit risk since initial recognition.
D There is evidence indicating the asset is Lifetime ECL (credit-impaired)
credit-impaired.
Not past
due/No fixed
repayment
RMB’000 RMB’000 RMB’000
At 31 December 2020 — 31,141 31,141
At 31 December 2021 — 51,502 51,502
At 31 December 2022 — 67,721 67,721
At 31 March 2023 — 79,136 79,136
(iv) Accounts receivable and notes receivable:
As a majority of the Target Group’s sales of electricity were made to regional and provincial
power grid company, the Target Group has applied the simplified approach in HKFRS 9 to
measure the loss allowance at lifetime ECL individually for accounts receivable and notes
receivable. At the end of the reporting period, the Directors have performed impairment
assessment for accounts receivable and notes receivable based on external credit rating and
corresponding default rate issued by international credit-rating agencies, and concluded that the
credit losses of the accounts receivable and notes receivable as at 31 December 2020, 2021 and
2022 and 31 March 2023 was insignificant and therefore no allowance is provided for accounts
receivable and notes receivable.
(c) Liquidity risk
The Target Group’s primary cash requirements have been for construction of power plants, additions of and
expenses. The Target Group finances its working capital requirements through a combination of internal resources,
borrowings from related parties, and short-term and long-term bank and other borrowings and perpetual securities.
– IIC-51 –
The table below analyses the Target Group’s financial liabilities into relevant maturity Target Group based on
the remaining period at the end of reporting period to the contractual maturity date. The amounts disclosed in the
table are the contractual undiscounted cash outflows by maturity and its carrying amounts.
Total
On demand Between one Between two contractual Total
or within and two and five Over undiscounted Carrying
one year years years five years cash outflows amount
At 31 December 2020
Other payables and accrued charges 57,354 — — — 57,354 57,354
Construction costs payable 135,377 — — — 135,377 135,377
Amounts due to related parties 6 — — — 6 6
Bank borrowings 52,272 4,188 1,990 7,439 65,889 62,906
Other borrowings 880 64,393 196,650 28,950 290,873 278,281
Borrowings from related parties 134,016 13,820 20,940 139,252 308,028 294,201
379,905 82,401 219,580 175,641 857,527 828,125
At 31 December 2021
Bank borrowings 40,722 115,298 192,596 377,392 726,008 693,220
437,678 320,795 663,366 783,238 2,205,077 2,117,250
At 31 December 2022
Bank borrowings 104,730 131,262 430,084 629,977 1,296,053 1,247,463
Lease liabilities 37,892 — — — 37,892 37,892
1,056,523 783,356 536,026 1,006,564 3,382,469 3,267,463
At 31 March 2023
Bank borrowings 92,403 160,582 577,869 1,043,432 1,874,286 1,804,976
Borrowings from related parties 260,563 21,846 — 7,817 290,226 278,460
Lease liabilities 19,543 — — — 19,543 19,543
988,061 350,728 1,001,873 1,081,418 3,422,080 3,309,661
– IIC-52 –
The Target Group’s objectives when managing capital are to safeguard the Target Group’s ability to continue as a
going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of
capital.
The Target Group manages the capital structure and makes adjustments to it in light of changes in economic
condition. In order to maintain or adjust the capital structure, the Target Group may adjust the dividend payments to
borrowings.
The Target Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by
as shown in the Combined statements of financial position) less cash and cash equivalents. Total capital is calculated as
total equity, as shown in the Combined statements of financial position, plus net debt.
The table below analyses the Target Group’s capital structure.

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Bank borrowings (Note 29) 62,906 693,220 1,247,463 1,804,976
Other borrowings (Note 30) 278,281 949,318 847,089 706,692
Borrowings from related parties (Note 31) 294,201 152,981 662,775 278,460
Lease liabilities (Note 32) — — 37,892 19,543
Less: Cash and cash equivalents (Note 25) (62,506) (72,622) (154,096) (111,350)
Net debt 572,882 1,722,897 2,641,123 2,698,321
Total equity 289,247 761,568 1,653,540 1,657,631
Total capital 862,129 2,484,465 4,294,663 4,355,952
The Directors consider that the carrying amounts of financial assets and financial liabilities recorded at amortised
cost in the Historical Financial Information approximate to their fair value as at 31 December 2020, 2021 and 2022 and 31
March 2023.
– IIC-53 –
38. ACQUISITIONS OF SUBSIDIARIES
38.1 Acquisitions of Xunwu Aikang New Energy Technology Co., Ltd. And Chongren Aikang New Energy
Technology Co., Ltd.
On 30 April 2020, the Target Group acquired 100% equity interests in Xunwu Aikang New Energy Technology Co.,
Ltd. (尋烏愛康新能源科技有限公司) (‘‘Xunwu Aikang’’) and 60% equity interests in Chongren Aikang New Energy
Technology Co., Ltd. (崇仁縣愛康新能源科技有限公司) (‘‘Chongren Aikang’’) from an independent third party in form of
paying cash consideration.
2020
RMB’000
Cash paid 34,474
Non-current assets
Current assets
Accounts receivable 77,140
Current liabilities
Construction costs payable (34,043)
The accounts receivable was acquired with a fair value and gross contractual amounts of RMB77,140,000 at the date
of acquisition.
The non-controlling interests (40%) in Chongren Aikang recognised at the acquisition date was measured by
reference to the proportionate share of recognised amounted of net liabilities of Chongren Aikang and amounted to
RMB3,680,000.

2020
RMB’000
Add: Non-controlling interests (3,680)
Gain on recognition of negative goodwill (note 7) (2,805)

2020
RMB’000
31,195
During the period from the acquisition date to 31 December 2020, Xunwu Aikang and Chongren Aikang had
contributed a total revenue of approximately RMB29,141,000 and net profit of approximately RMB6,200,000.
– IIC-54 –
38.2 Acquisition of Guzhen Aikang Photovoltaic New Energy Co., Ltd.
On 30 September 2020, the Target Group acquired 100% equity interests in Guzhen Aikang Photovoltaic New
Energy Co., Ltd. (固鎮縣愛康光伏新能源有限公司) (‘‘Guzhen Aikang’’) from an independent third party in form of paying
cash consideration.
2020
RMB’000
Cash paid 20,453
Non-current asset
Current asset
Non-current liability
Current liabilities
of acquisition.
2020
RMB’000
Gain on recognition of negative goodwill (note 7) (632)
2020
RMB’000
19,090
During the period from the acquisition date to 31 December 2020, Guzhen Aikang had contributed a total
revenue of approximately RMB4,063,000 and net profit of approximately RMB536,000.
– IIC-55 –
38.3 Acquisition of Mingguang Aikang Electric Power Development Co., Ltd.
On 30 September 2020, the Target Group acquired 100% equity interests in Mingguang Aikang Electric Power
Development Co., Ltd. (明光愛康電力開發有限公司) (‘‘Mingguang Aikang’’) from an independent third party in form of
paying cash consideration.
2020
RMB’000
Cash paid —
Non-current asset
Current asset
Current liabilities
Other payables and accrued charges (4)
of acquisition.
2020
RMB’000
2020
RMB’000
(3,006)
During the period from the acquisition date to 31 December 2020, Mingguang Aikang had contributed a total
revenue of approximately RMB1,956,000 and net profit of approximately RMB457,000.
– IIC-56 –
38.4 Acquisition of Yanjin Kexing New Energy Co., Ltd.
On 31 March 2021, the Target Group acquired 100% equity interests in Yanjin Kexing New Energy Co., Ltd. (延津
縣科興新能源有限公司) (‘‘Yanjin Kexing’’) from independent third parties in form of paying cash consideration.
2021
RMB’000
Cash paid —
Non-current asset
Current assets
Current liabilities
Tax payable (327)
of acquisition.
2021
RMB’000
2021
RMB’000
(7,648)
During the period from the acquisition date to 31 December 2021, Yanjin Kexing had contributed a total
– IIC-57 –
38.5 Acquisition of Ningxia Xuyang Electric Power Co., Ltd.
On 31 March 2021, the Target Group acquired 100% equity interests in Ningxia Xuyang Electric Power Co., Ltd. (寧
夏旭陽電力有限公司) (‘‘Ningxia Xuyang’’) from an independent third party in form of paying cash consideration.
2021
RMB’000
Cash paid 1,000
Non-current asset
Current assets
Accounts receivables 5,230
Current liabilities
of acquisition.
2021
RMB’000
Goodwill arising from acquisition —
2021
RMB’000
985
During the period from the acquisition date to 31 December 2021, Ningxia Xuyang had contributed a total
revenue of approximately RMBnil and net profit of approximately RMBnil.
for the year ended 31 December 2021 would have been increased by approximately RMBnil and net profit of
approximately RMBnil.
– IIC-58 –
38.6 Acquisition of Huaian Zhongheng New Energy Co., Ltd.
On 31 July 2021, the Target Group acquired 80% equity interests in Huaian Zhongheng New Energy Co., Ltd. (淮安
中恒新能源有限公司) (‘‘Huaian Zhongheng’’) from an independent third party in form of paying cash consideration.
2021
RMB’000
Cash paid 82,180
Non-current assets
Current assets
Current liabilities
of acquisition.
The non-controlling interests (20%) in Huaian Zhongheng recognised at the acquisition date was measured by
reference to the proportionate share of recognised amounts of net assets of Huaian Zhongheng and amounted to
RMB26,318,000.
2021
RMB’000
2021
RMB’000
76,562
During the period from the acquisition date to 31 December 2021, Huaian Zhongheng had contributed a total
for the year ended 31 December 2021 would have been increased by approximately RMB93,232,000 and net profit of
approximately RMB25,605,000.
– IIC-59 –
38.7 Acquisition of Inner Mongolia Fuqiang Wind Power Co., Ltd.
On 31 July 2022, the Target Group acquired 100% equity interests in Inner Mongolia Fuqiang Wind Power Co., Ltd.
(內蒙古富強風力發電有限公司) (‘‘Inner Mongolia’’) from an independent third party in form of paying cash consideration.
2022
RMB’000
Cash paid 105,690
Non-current assets
Current assets
Current liabilities
Tax payable (64)
of acquisition.
2022
RMB’000
Goodwill arising on acquisition —
2022
RMB’000
102,958
During the period from the acquisition date to 31 December 2022, Inner Mongolia had contributed a total
for the year ended 31 December 2022 would have been increased by approximately RMB47,314,000 and net profit of
approximately RMB5,699,000.
– IIC-60 –
38.8 Acquisition of Ningxia Jiaxu New energy Technology Co., Ltd.
On 31 October 2022, the Target Group acquired 100% equity interests in Ningxia Jiaxu New energy Technology Co.,
Ltd. (寧夏嘉旭新能源科技有限公司) (‘‘Ningxia Jiaxu’’) from an independent third party in form of paying cash
consideration.
2022
RMB’000
Cash paid —
Non-current asset
Current assets
Current liabilities
2022
RMB’000
(279)
During the period from the acquisition date to 31 December 2022, Ningxia Xuyang had contributed a total
revenue of approximately RMBnil and net profit of approximately RMBnil.
for the year ended 31 December 2022 would have been increased by approximately RMBnil and net profit of
approximately RMBnil.
The Target Group is wholly owned subsidiary of SPIC, SPIC is controlled by the PRC government which also owns a
defined as related parties of the Target Group. On that basis, related parties include SPIC, its subsidiaries, joint ventures and
associates (other than the Target Group), other government-related entities and their subsidiaries, other entities and corporations in
which the Target Company is able to control or exercise significant influence and key management personnel of the Target
– IIC-61 –
in the ordinary course of the Target Group’s business in addition to the related party information shown elsewhere in these
(a) Transactions with related parties
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Income from provision of IT and other
services to companies controlled by SPIC 136 493 464 — —
Interest income from companies controlled
by SPIC (i) 2,228 1,571 23 24 4
Interest expense to companies controlled
by SPIC (ii) (12,464) (3,511) (18,940) (1,339) (2,181)
Labour and services to companies controlled
by SPIC (133) (1,475) (1,811) (1,435) (298)
Purchases of materials and facilities to
companies controlled by SPIC (224) (2,453) (14,348) (76) (4,184)
Notes:
(i) For the years ended 31 December 2020, 2021 and 2022 and for the period ended 31 March 2022 and 2023,
interest income from companies controlled by SPIC was charged at interest rates from 0.35% to 5%, 0.35% to
1.5%, 0.35% to 1.5%, 0.35% to 1.5% and 0.35% to 1.5% per annum, respectively.
(ii) For the years ended 31 December 2020, 2021 and 2022 and for the period ended 31 March 2022 and 2023,
interest expenses to companies controlled by SPIC are charged at interest rates ranged from 4.28% to 5%, 4%
to 5.5%, 3.45% to 5.5%, 4% and 5.5% and 3.45% to 5.5% per annum, respectively.
(b) Period-end balances with related parties
Period-end balances with related parties are disclosed in Notes 21, 23, 25,27 and 31.
(c) For the years ended 31 December 2020, 2021 and 2022 and three months ended 31 March 2022 and 2023, the Target
Group’s significant transactions and balances with entities that were controlled, jointly-controlled or significantly
influenced by the PRC government mainly include:
(i) bank deposits in state-owned banks and the related interest income
(ii) bank borrowings from state-owned banks and the related interest expenses
(iii) sales of electricity to provincial power grid companies owned by the PRC government and the related
receivables
(iv) service fees to state-owned enterprises
The prices and terms of these transactions are set out in the relevant agreements governing these transactions or as
mutually agreed.
(d) Key management personnel compensation
The key management personnel of the Target Company are the directors. Details of remuneration paid to them are
set out in Note 12 to the Historical Financial Information.
40. TRANSACTIONS WITH NON-CONTROLLING INTERESTS
Deemed disposal in interest in a subsidiary without loss of control
During the year ended 31 December 2022, Fuzhou Minxin Power Investment Energy Co., Ltd (福州市閩新電投能源
有限公司) (‘‘Minxin Power Investment Energy’’), a wholly owned subsidiary of the Target Company, entered into a capital
increase agreement with an independent third party, pursuant to which the Minxin Power Investment Energy investor agreed
to contribute RMB300,000,000 to Minxin Power Investment Energy. After that, the Target Group’s effective equity interests
in Minxin Power Investment Energy were diluted from 100.00% to 58.18%. As a result, the Target Group recognised an
increase in equity attributable to owners of the Target Company of approximately RMB28,686,000 and an increase in non-
controlling interests of approximately RMB271,314,000.
– IIC-62 –
As at 31 December 2021 As at 31 March 2023

2020 Proportion of Proportion of ownership 2022 Proportion of Proportion of ownership
ownership interest interest ownership interest interest
Place of establishment Registered/paid up Held by the Held by Held by the Held by Held by the Held by Held by the Held by
Name of subsidiaries and operation capital Company subsidiaries Company subsidiaries Company subsidiaries Company subsidiaries Principal activities
Zhangzhou Guodian Investment New The PRC 10,000,000/ — 100% — 100% — 100% — 100% Generation and sales of
Energy Co., Ltd. 8,486,100 electricity
APPENDIX IIC
(漳州國電投新能源有限公司)
Zhangpu Guodian Investment The PRC 14,000,000/ — 100% — 100% — 100% — 100% Generation and sales of
Photovoltaic Co., Ltd. 14,000,000 electricity
(漳浦國電投光伏有限公司)
Wuping Puji Solar Technology The PRC 14,000,000/ — 60% — 60% — 60% — 60% Generation and sales of
Development Co., Ltd. 11,500,000 electricity
(武平普集太陽能科技發展
有限公司)
Fuqing Guodian Investment Energy The PRC 20,000,000/ — 100% — 100% — 100% — 100% Generation and sales of
Co., Ltd. 12,736,800 electricity
(福清國電投能源有限公司)
Chongren Aikang New Energy The PRC 25,102,000/ — 60% — 60% — 60% — 60% Generation and sales of
Technology Co., Ltd. 19,940,000 electricity
(崇仁縣愛康新能源科技
有限公司)
Xunwu Aikang New energy The PRC 65,000,000/ — 100% — 100% — 100% — 100% Generation and sales of
– IIC-63 –
(尋烏愛康新能源科技
有限公司)
Guzhen Aikang Photovoltaic New The PRC 120,000,000/ — 100% — 100% — 100% — 100% Generation and sales of
Energy Co., Ltd. 120,000,000 electricity
(固鎮縣愛康光伏新能源
有限公司)
Huaian Zhongheng New Energy Co., The PRC 300,000,000/ — — 80% — — 80% — 80% Generation and sales of
Ltd. 170,968,000 electricity
(淮安中恒新能源有限公司) (Note
(i))
Yanjin Kexing New Energy Co., Ltd. The PRC 76,800,000/ — — — 100% — 100% — 100% Generation and sales of
(延津縣科興新能源有限 76,800,000 electricity
公司)
Mingguang Aikang Electric Power The PRC 29,000,000/ — 100% — 100% — 100% — 100% Generation and sales of
(明光愛康電力開發有限公司)
As at 31 December 2021 As at 31 March 2023
2020 Proportion of Proportion of ownership 2022 Proportion of Proportion of ownership
ownership interest interest ownership interest interest
Place of establishment Registered/paid up Held by the Held by Held by the Held by Held by the Held by Held by the Held by
Name of subsidiaries and operation capital Company subsidiaries Company subsidiaries Company subsidiaries Company subsidiaries Principal activities
Zhongwei Changyang New Energy The PRC 74,000,000/ — — — 100% — 100% — 100% Generation and sales of
Technology Co., Ltd. (中衛市常陽 74,000,000 electricity
新能源科技有限公司)
Inner Mongolia Fuqiang Wind Power The PRC 85,500,000/ 100% 100% Generation and sales of
APPENDIX IIC
— — — — — —
Co., Ltd. 85,500,000 electricity
(內蒙古富強風力發電有限公司)
Dancheng Minneng Power The PRC 39,000,000/ — 100% — 100% — 100% — 100% Generation and sales of
(鄲城縣閩能電力發展有限公司)
State Power Investment Taiqian The PRC 104,000,000/ — 51% — 51% — 51% — 51% Generation and sales of
Comprehensive Smart Energy 85,710,000 electricity
Development Co., Ltd.
(國電投台前縣綜合智慧能源發展
有限公司)
Ningxia Jiaxu New Energy The PRC 160,000,000/ — — — — 100% — 100% — Generation and sales of
(寧夏嘉旭新能源科技有限公司)
Note:
– IIC-64 –
(i) During the year ended 31 December 2021, 80% of the interest of this company was directly held by the Target Company. From the year ended 31 December 2022 onwards, 80% of
the interest of this company was held indirectly by the Target Company through a wholly owned subsidiary.
Material non-controlling interests
The table below shows details of non wholly-owned subsidiaries of the Target Company that have material non-controlling interests:
Place of Proportion of ownership interests and voting rights held by Total comprehensive income allocated to non-controlling
Name of subsidiaries incorporation non-controlling interests interests Accumulated non-controlling interests
Three
months
As at ended As at
APPENDIX IIC
As at 31 December 31 March Year ended 31 December 31 March As at 31 December 31 March

2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023
% % % % RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
福州市閩新電投能源有限公司 and its subsidiaries PRC — — 41.82 41.82 — — 32,847 10,143 — — 289,682 299,825
(collectively known as ‘‘Minxin Power Investment
Energy Group’’)
Subsidiaries with individually immaterial non-controlling 63,427 104,860 114,302 113,564
interests
63,427 104,860 403,984 413,389
– IIC-65 –
The non-controlling interests in respect of the rest of entities with non-controlling interests were individually not material.
Set out below are the summarised financial information in respect of each of the Target Group’s subsidiaries that has material non-
controlling
(1) Minxin Power Investment Energy Group
Summarised consolidated statement of financial position

Minxin Power Investment Energy Group
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Non-current assets — 328,062 1,323,372 1,304,568
Current assets — 37,019 582,690 610,410
Non-current liabilities — (249,890) (625,910) (641,991)
Current liabilities — (68,433) (541,110) (506,795)
Total equity — 46,758 739,042 766,192
Non-controlling interests within Minxin Power
Investment Energy Group — — (46,355) (49,250)
Equity attributable to equity holders of Minxin
Power Investment Energy Group — 46,758 692,687 716,942
Non-controlling interests of Minxin Power
Investment Energy Group (at 41.82%) N/A N/A 289,682 299,825
Summarised consolidated statement of profit or loss and other comprehensive income

Three months
ended
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Revenue — 44,264 229,900 63,632
for the year — 14,456 85,700 27,150
attributable to the non-controlling interests of
Minxin Power Investment Energy Group’s
subsidiaries — — (7,157) (2,895)
attributable to the equity holders of Minxin
Power Investment Energy Group — 14,456 78,543 24,255
attributable to the non-controlling interests of
(at 41.82%) N/A N/A 32,847 10,143
Summarised consolidated statement of cash flows

Three months
ended
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Net cash inflow from operating activities — 46,753 161,056 40,846
Net cash outflow from investing activities — (104,904) (1,372,465) (58,939)
Net cash inflow from financing activities — 58,848 1,246,909 14,665
equivalents — 697 35,500 (3,428)
Cash and cash equivalents at 1 January — — 697 36,197
Cash and cash equivalents at 31 December — 697 36,197 32,769
– IIC-66 –
42. SUBSEQUENT EVENTS
No significant event requiring disclosure has been taken place subsequent to 31 March 2023.
43. SUBSEQUENT FINANCIAL STATEMENTS
No audited combined financial statements have been prepared by the Target Group in respect of any period subsequent to
31 March 2023. No dividend or distribution has been declared or made by the Target Group in respect of any period subsequent to
31 March 2023.
– IIC-67 –
APPENDIX IID ACCOUNTANTS’ REPORT ON SHANXI COMPANY
ACCOUNTANTS’ REPORT ON SHANXI COMPANY

The following is the text of reports received from Grant Thornton Hong Kong Limited, Certified
Public Accountants, Hong Kong, for the purpose of incorporation in this circular.
ACCOUNTANTS’ REPORT ON HISTORICAL FINANCIAL INFORMATION OF SPIC SHANXI

POWER CO., LTD. AND ITS SUBSIDIARIES TO THE DIRECTORS OF CHINA POWER
INTERNATIONAL DEVELOPMENT LIMITED
Introduction
We report on the historical financial information of SPIC Shanxi Power Co., Ltd.* (國家電投集團
山西電力有限公司) (the ‘‘Target Company’’) and its subsidiaries (together, the ‘‘Target Group’’) set out
on pages IID-3 to IID-52, which comprises the consolidated statements of financial position of the
Target Group as at 31 December 2020, 2021 and 2022 and 31 March 2023, the statements of financial
position of the Target Company as at 31 December 2020, 2021 and 2022 and 31 March 2023, and the
consolidated income statements, the consolidated statements of changes in equity and the consolidated
statements of cash flows for each of the years ended 31 December 2020, 2021 and 2022 and the three
months ended 31 March 2023 (the ‘‘Relevant Periods’’), and a summary of significant accounting
policies and other explanatory information (together, the ‘‘Historical Financial Information’’). The
Historical Financial Information set out on pages IID-3 to IID-52 forms an integral part of this report,
which has been prepared for inclusion in the circular of China Power International Development Limited
(the ‘‘Company’’) dated 18 August 2023 (the ‘‘Circular’’) in connection with the proposed acquisition of
the entire equity interests in the Target Company by the Company.
Directors’ Responsibility for the Historical Financial Information
The directors of the Target Company are responsible for the preparation of the Historical Financial
Information that gives a true and fair view in accordance with the basis of preparation set out in note 2.1
to the Historical Financial Information, and for such internal control as the directors determine is
necessary to enable the preparation of the Historical Financial Information that is free from material
on the accounting policies materially consistent with those of the Company.
Reporting Accountants’ Responsibility
Investment Circulars’’ issued by the Hong Kong Institute of Certified Public Accountants (‘‘HKICPA’’).
This standard requires that we comply with ethical standards and plan and perform our work to obtain
reasonable assurance about whether the Historical Financial Information is free from material
misstatement.
gives a true and fair view in accordance with the basis of preparation set out in note 2.1 to the Historical
estimates made by the directors, as well as evaluating the overall presentation of the Historical Financial
Information.
* For identification purposes only
– IID-1 –
our opinion.
Opinion
report, a true and fair view of the Target Group’s and Target Company’s financial position as at 31
December 2020, 2021 and 2022 and 31 March 2023, and of the Target Group’s financial performance
and cash flows for the Relevant Periods in accordance with the basis of preparation set out in note 2.1 to
Review of stub period corresponding financial information
We have reviewed the stub period corresponding historical financial information of the Target
Group which comprises the consolidated income statements, the consolidated statement of changes in
equity and the consolidated cash flow statement for the three months ended 31 March 2022 and other
explanatory information (together the ‘‘Stub Period Corresponding Historical Financial Information’’).
The directors of the Target Company are responsible for the preparation of the Stub Period
Corresponding Historical Financial Information in accordance with the basis of preparation set out in
note 2.1 to the Historical Financial Information. Our responsibility is to express a conclusion on the
Stub Period Corresponding Historical Financial Information based on our review. We conducted our
review in accordance with Hong Kong Standard on Review Engagements 2410 ‘‘Review of Interim
Financial Information Performed by the Independent Auditor of the Entity’’ issued by the HKICPA. A
review consists of making enquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A review is substantially less in scope
than an audit conducted in accordance with Hong Kong Standards on Auditing and consequently does
not enable us to obtain assurance that we would become aware of all significant matters that might be
identified in an audit.
attention that causes us to believe that the Stub Period Corresponding Historical Financial Information,
for the purpose of the accountants’ report, is not prepared, in all material respects, in accordance with
the basis of preparation set out in note 2.1 to the Historical Financial Information.
REPORT ON MATTERS UNDER THE RULES GOVERNING THE LISTING OF SECURITIES
ON THE STOCK EXCHANGE OF HONG KONG LIMITED (THE ‘‘LISTING RULES’’)
Adjustments
Statements as defined on page IID-3 have been made.
Dividends
We refer to note 14 to the Historical Financial Information which states that dividends have been
declared by the Target Company in respect of the Relevant Periods.
Grant Thornton Hong Kong Limited

11th Floor, Lee Garden Two
28 Yun Ping Road
Causeway Bay
Hong Kong
18 August 2023
Chiu Wing Ning
Practising Certificate No.: P04920
– IID-2 –
I. HISTORICAL FINANCIAL INFORMATION
The consolidated financial statements of the Target Group for the Relevant Periods, on which
the Historical Financial Information is based, were audited by Grant Thornton Hong Kong Limited
in accordance with Hong Kong Standards on Auditing issued by the Hong Kong Institute of
Certified Public Accountants (‘‘HKICPA’’) (‘‘Underlying Financial Statements’’).
(A) Consolidated Income Statements
Three months ended

Notes 2020 2021 2022 2022 2023
(unaudited)
Revenue 4 68,344 120,798 185,038 23,926 147,683
Other income 5 8,468 13,346 43,443 3,314 12,421
Depreciation (32,292) (53,657) (75,284) (13,223) (49,958)
Staff costs 11 (9,800) (16,586) (24,832) (2,770) (10,244)
Repair and maintenance costs (5,754) (12,860) (24,452) (2,046) (9,478)
Other gains and (losses), net 6 — 3,840 9,647 — 7
Finance income 8 183 4,322 5,291 127 329
Finance costs 9 (24,572) (41,673) (69,215) (8,107) (27,577)
Share of results of associates — 1,102 338 (1,774) 1,477
Profit/(loss) before income tax 10 3,174 12,137 33,902 (2,649) 59,395
Income tax credit/(expense) 13 606 (1,825) (13,201) (606) (9,728)
Profit/(loss) for the year/period 3,780 10,312 20,701 (3,255) 49,667
Attributable to:
— Equity holders of the
Target Company 3,780 10,312 17,206 (3,255) 46,365
— Non-controlling interests — — 3,495 — 3,302
3,780 10,312 20,701 (3,255) 49,667
– IID-3 –
(B) Consolidated Statements of Financial Position

As at
Notes 2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
ASSETS
Non-current assets
Property, plant and equipment 15 515,656 846,208 3,738,389 3,853,314
Interests in associates 17 — 34,962 85,320 86,797
Financial assets measured at amortised cost 18 — — 10,000 10,000
Accounts receivables 20 46,399 161,932 318,842 346,639
Deferred tax assets 29 1,128 5,772 6,626 7,513
580,453 1,083,373 4,242,270 4,386,437
Current assets
Inventories 19 10 588 1,476 1,139
Accounts receivables 20 3,461 12,712 334,714 388,426
Restricted deposits 22 — 100 1,155 1,140
368,093 271,413 1,006,702 1,084,373
Total assets 948,546 1,354,786 5,248,972 5,470,810
EQUITY
Equity attributable to equity holders of the
Target Company
Paid-in capital 23 195,900 195,900 458,252 458,252
Reserves 8,817 19,090 27,295 75,947
204,717 214,990 585,547 734,199
Non-controlling interests — — 499,362 502,664
Total equity 204,717 214,990 1,084,909 1,236,863
LIABILITIES
Bank borrowings 25 451,390 404,965 2,519,991 2,935,345
Other borrowings 26 200,000 450,507 269,651 487,951
Other non-current liabilities 28 — 71,350 68,106 68,725
Deferred tax liabilities 29 — 2,953 95,133 93,695
659,876 955,828 2,999,667 3,632,169
Current liabilities
Accounts and bills payables 30 54,859 90,333 175,419 205,192
Bank borrowings 25 18,700 37,380 95,563 168,019
Other borrowings 26 — 21,557 551,813 8,857
Lease liabilities 27 — 291 4,728 1,241
Tax payable 237 2,495 22,266 18,023
83,953 183,968 1,164,396 601,778
Total liabilities 743,829 1,139,796 4,164,063 4,233,947
Total equity and liabilities 948,546 1,354,786 5,248,972 5,470,810
Net current assets/(liabilities) 284,140 87,445 (157,694) 482,595
Total assets less current liabilities 864,593 1,170,818 4,084,576 4,869,032
– IID-4 –
(C) Consolidated Statements of Changes in Equity

Attributable to equity holders of the Target Company
Safety
Other production Statutory
Paid-in capital equity reserve* reserve* Retained Non-controlling Total
(note 23(a)) instruments* (note 23(b)) (note 23(c)) earnings* Sub-total interests equity
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
At 1 January 2020 195,900 — — 67 4,700 200,667 — 200,667
Profit and total comprehensive
income for the year — — — — 3,780 3,780 — 3,780
Transfer to statutory reserve — — — 5 (5) — — —
Safety production reserve — — 270 — — 270 — 270
1 January 2021 195,900 — 270 72 8,475 204,717 — 204,717
income for the year — — — — 10,312 10,312 — 10,312
Transfer to statutory reserve — — — 28 (28) — — —
Safety production reserve — — (2) — — (2) — (2)
Dividend declared (note 14) — — — — (37) (37) — (37)
1 January 2022 195,900 — 268 100 18,722 214,990 — 214,990
income for the year — — — — 17,206 17,206 3,495 20,701
Issuance of paid-in capital
(note 23) 262,352 — — — — 262,352 — 262,352
Issuance of perpetual debts
(note 24) — 100,000 — — — 100,000 — 100,000
Capital injections from non-
controlling shareholders of
subsidiaries — — — — — — 495,867 495,867
Transfer to statutory reserve — — — 4,780 (4,780) — — —
Safety production reserve — — 52 — — 52 — 52
Dividend declared (note 14) — — — — (9,053) (9,053) — (9,053)
1 January 2023 458,252 100,000 320 4,880 22,095 585,547 499,362 1,084,909
income for the period — — — — 46,365 46,365 3,302 49,667
Issuance of perpetual debts
(note 24) — 100,000 — — — 100,000 — 100,000
Safety production reserve — — 2,287 — — 2,287 — 2,287
At 31 March 2023 458,252 200,000 2,607 4,880 68,460 734,199 502,664 1,236,863
(Unaudited)
At 31 December 2021
and 1 January 2022 195,900 — 268 100 18,722 214,990 — 214,990
Loss and total comprehensive
expense for the period — — — — (3,255) (3,255) — (3,255)
Capital injection — — — — — — 2,133 2,133
Safety production reserve — — (268) — — (268) — (268)
At 31 March 2022 195,900 — — 100 15,467 211,467 2,133 213,600
* These reserve accounts comprise the Target Group’s reserves in the statement of financial position.
– IID-5 –
(D) Consolidated Statements of Cash Flows
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Profit/(loss) before income tax 3,174 12,137 33,902 (2,649) 59,395
Adjustments for:
plant and equipment 30,791 51,911 72,119 12,951 49,039
Depreciation of right of use assets 1,502 1,746 3,166 3,147 919
Finance income (183) (4,322) (5,291) (127) (329)
Finance costs 24,572 41,673 69,215 8,107 27,577
Safety production reserve 270 (2) 52 (268) 2,287
Share of results of associates — (1,102) (338) 1,774 (1,477)
Operating profit before working capital changes 60,126 102,041 172,825 22,935 137,411
(Increase)/Decrease in inventories — (578) (888) 1 337
(Increase)/Decrease in accounts receivables (24,373) (54,953) 170,334 (39,184) (81,509)
(Increase)/Decrease in prepayments, deposits
and other receivables (27,023) 52,075 14,763 11,584 (21,605)
(Decrease)/Increase in accounts and bills
payables (12,109) (21,463) 39,126 (4,703) 29,773
(Decrease)/Increase in other payables and
accrued charges (7,087) (279,551) (260,152) 192,258 (113,542)
Cash generated (used in)/from operations (10,466) (202,429) 136,008 182,891 (49,135)
Tax (paid)/refund (335) 556 4,667 (2,117) (16,296)
Net cash (used in)/from operating activities (10,801) (201,873) 140,675 180,774 (65,431)
Interest received 183 4,322 5,291 127 329
Payment for property, plant and equipment (565) (74,667) (637,708) (8,161) (157,919)
Acquisition of subsidiaries, net of cash
acquired — (46,460) (658,460) — —
Investments in associates — (33,860) (87,180) — —
Payment for financial assets measured at
amortised costs — — (10,000) — —
Capital injections 65,900 — 262,352 — —
(Increase)/Decrease in restricted deposits — (100) (1,055) 100 15
Net cash from/(used in) investing activities 65,518 (150,765) (1,126,760) (7,934) (157,575)
– IID-6 –
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Drawdown of bank borrowings — 148,955 511,353 100,063 583,373
Drawdown of other borrowings 200,000 272,064 370,957 28,497 227,157
Issuance of perpetual debts — — 100,000 — 100,000
Capital contribution from non-controlling
interests — — 495,867 2,133 —
Interests paid (24,572) (41,673) (77,120) (8,107) (33,622)
Repayment of bank borrowings (28,700) (176,700) (37,380) — (95,563)
Repayment of other borrowings — — (21,557) (288,113) (551,813)
Payment for lease liabilities (366) (1,117) (2,522) (7,094) (3,820)
Dividend paid — (37) (9,053) — —
Net cash from/(used in) financing activities 146,362 201,492 1,330,545 (172,621) 225,712
equivalents 201,079 (151,146) 344,460 219 2,706
Cash and cash equivalent at beginning of the
year/period 58,688 259,747 108,601 108,601 453,061
Cash and cash equivalent at end of year/
period 259,767 108,601 453,061 108,820 455,767
– IID-7 –
(E) Statements of Financial Position of the Target Company
As at
Notes 2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
ASSETS
Non-current assets
Interests in subsidiaries 128,000 218,162 773,382 852,560
Financial assets measured at amortised cost — — 1,133,190 906,450
Accounts receivables — 1,312 — —
144,397 248,147 1,927,684 1,780,104
Current assets
Inventories 10 10 10 10
Accounts receivables 5,055 6,317 1,939 2,390
268,068 311,460 171,558 336,015
Total assets 412,465 559,607 2,099,242 2,116,119
EQUITY
the Target Company
Paid-in capital 23 195,900 195,900 458,252 458,252
Reserves 38 731 979 39,723 41,818
Total equity 196,631 196,879 597,975 700,070
LIABILITIES
Other borrowings 200,000 100,224 — 297,600
Other non-current liabilities — 166,332 — —
200,000 266,556 — 297,600
Current liabilities
Accounts and bills payables — — 204 242
Other payables and accrued charges 15,727 73,984 1,121,494 1,039,910
Other borrowings — 21,557 373,813 76,580
Tax payable 107 631 5,756 1,717
15,834 96,172 1,501,267 1,118,449
Total liabilities 215,834 362,728 1,501,267 1,416,049
Total equity and liabilities 412,465 559,607 2,099,242 2,116,119
Net current assets/(liabilities) 252,234 215,288 (1,329,709) (782,434)
Total assets less current liabilities 396,631 463,435 597,975 997,670
– IID-8 –
II. NOTES TO THE HISTORICAL FINANCIAL INFORMATION OF THE TARGET GROUP

SPIC Shanxi Power Company Limited (formerly known as SPIC Shanxi Clean Energy Co., Ltd., the ‘‘Target
Company’’) was incorporated in the People’s Republic of China (the ‘‘PRC’’) on 31 July 2017. The address of its registered
office is Room 2113, 21st Floor, Building 14, Pingyang Jingyuan, No. 65 Pingyang Road, Xiaodian District, Taiyuan City,
Shanxi Province, PRC.
The Target Company and its subsidiaries (together referred to as the ‘‘Target Group’’) are principally engaged in
generation and sales of electricity in the People’s Republic of China (the ‘‘PRC’’), including investment, development,
operation and management of photovoltaic power and wind power plants. Its businesses are located in various major power
grid regions of the PRC.
In the opinion of the directors of the Target Company, the immediate holding company and ultimate holding
company of the Target Company is State Power Investment Corporation Limited (國家電力投資集團有限公司) (‘‘SPIC’’),
companies incorporated in the PRC with limited liability, respectively.
The Historical Financial Information is presented in Renminbi (‘‘RMB’’), rounded to the nearest thousand
(RMB’000), which is also the functional currency of the Target Company.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Historical Financial Information set out in this report has been prepared in accordance with Hong Kong
Financial Reporting Standards (‘‘HKFRSs’’) which includes all applicable individual Hong Kong Financial Reporting
Standards, Hong Kong Accounting Standards, amendments and interpretations issued by the Hong Kong Institute of
Certified Public Accountants (‘‘HKICPA’’) and the accounting principles generally accepted in Hong Kong and the
applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong
Kong Limited. The Stub Period Corresponding Historical Financial Information has been prepared in accordance
with the same basis of preparation adopted in respect of the Historical Financial Information.
For the purpose of preparing and presenting the Historical Financial Information for the Relevant Periods, the
Target Group has consistently applied all HKFRSs which are effective during the Relevant Periods, except for any
new standards or interpretations that are not yet effective during the Relevant Periods. The significant accounting
policies that have been used in the preparation of the Historical Financial Information have been consistently applied
throughout the Relevant Periods. The adoption of new or amended HKFRSs that are issued but not yet effective and
their impact on Historical Financial Information, if any, are disclosed below.
The Historical Financial Information has been prepared on the historical cost basis. The measurement bases
are fully described in the accounting policies below.
The preparation of the Historical Financial Information in conformity with HKFRSs requires the use of
certain critical accounting estimates. The areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the Historical Financial Information are disclosed in note 3 below.
Issued but not yet effective HKFRSs
The Target Group has not early adopted the following new and amended HKFRSs which have been
issued but are not yet effective for the Relevant Periods.
Amendments to HKFRS 10 Sale or Contribution of Assets between an Investor and its Associate
and HKAS 28 or Joint Venture 2
Amendments to HKAS 1 Classification of Liabilities as Current or Non-current and related
amendments to Hong Kong Interpretation 5 (2020) 1, 3
Amendments to HKAS 1 Non-current Liabilities with Covenants1
1
2
3
As a consequence of the 2022 Amendments, the effective date of the 2020 Amendments was
deferred to annual periods beginning on or after 1 January 2024. In addition, as a consequence
of the 2020 Amendments and 2022 Amendments, Hong Kong Interpretation 5 ‘‘Presentation of
Financial Statements — Classification by the Borrower of a Term Loan that Contains a
Repayment on Demand Clause’’ was revised to align the corresponding wording with no change
in conclusion
– IID-9 –
The directors of the Target Group anticipate that all of the pronouncements will be adopted in the
Target Group’s accounting policy for the first period beginning after the effective date of the pronouncement,
and these are not expected to have a material impact on the Target Group’s financial statements.
2.2 Basis of consolidation
(a) Subsidiaries
A subsidiary is an entity (including a structured entity) over which the Target Group has control. The
Target Group controls an entity when the Target Group is exposed to, or has rights to, variable returns from
its involvement with the entity and has the ability to affect those returns through its power over the entity.
Subsidiaries are consolidated from the date on which control is transferred to the Target Group. They are
deconsolidated from the date that control ceases.
Business combinations
consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred,
the liabilities incurred to the former owners of the acquiree and the equity interests issued by the
Target Group. Identifiable assets acquired and liabilities and contingent liabilities assumed in a
business combination are measured initially at their fair value at acquisition date, except that:
arrangements are recognised and measured in accordance with HKAS 12 Income Taxes
and HKAS 19 Employee Benefits respectively; and
payments (as defined in HKFRS 16) as if the acquired leases were new leases at the
acquisition date, except for leases for which (a) the lease term ends within 12 months of
the acquisition date; or (b) the underlying asset is of low value. Right-of-use assets are
recognised and measured at the same amount as the relevant lease liabilities, adjusted to
reflect favourable or unfavourable terms of the lease when compared with market terms.
acquisition basis. Non-controlling interests in the acquiree that are present ownership interests and
entitle their holders to a proportionate share of the relevant subsidiary’s net assets in the event of
liquidation are measured at either fair value or the present ownership interests’ proportionate share in
the recognised amounts of the acquiree’s identifiable net assets. The choice of measurement basis is
made on a transaction-by-transaction basis. All other components of non-controlling interests are
measured at their fair values at acquisition date, unless another measurement basis is required by
HKFRS.
If the business combination is achieved in stages, the acquisition date carrying value of the
acquirer’s previously held equity interest in the acquiree is re-measured to fair value at the acquisition
date; any gains or losses arising from such re-measurement are recognised in profit or loss or other
comprehensive income, as appropriate.
The excess of the consideration transferred, the amount of any non-controlling interest in the
acquiree and the fair value at acquisition date of any previous equity interest in the acquiree over the
fair value of the identifiable net assets acquired is recorded as goodwill. If the total of consideration
transferred, non-controlling interest recognised and previously held interest measured at fair value is
less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase,
the difference is recognised directly in the consolidated income statement.
Intra-group transactions, balances and unrealised gains on transactions between group

companies are eliminated. Unrealised losses are also eliminated. When necessary, amounts reported by
subsidiaries have been adjusted to conform with the Target Group’s accounting policies.
therein, which represent present ownership interests entitling their holders to a proportionate share of
net assets of the relevant subsidiaries upon liquidation.
– IID-10 –
(b) Associates
accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are
accounted for using the equity method of accounting. Under the equity method, the investment is initially
recognised at cost, and the carrying amount is increased or decreased to recognise the investor’s share of the
profit or loss and other comprehensive income of the investee after the date of acquisition. Upon the
acquisition of the ownership interest in an associate, any difference between the cost of the associate and the
Target Group’s share of the net fair value of the associate’s identifiable assets and liabilities is accounted for
as goodwill. If the ownership interest in an associate is reduced but significant influence is retained, only a
proportionate share of the amounts previously recognised in other comprehensive income is reclassified to
profit or loss.
The Target Group’s share of post-acquisition profit or loss is recognised in the consolidated income
statement, and its share of post-acquisition movements in other comprehensive income is recognised in other
comprehensive income with a corresponding adjustment to the carrying amount of the investment. When the
Target Group’s share of losses in an associate equals or exceeds its interest in the associate, the Target Group
does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on
behalf of the associate.
investment in the associate is impaired. If this is the case, the Target Group calculates the amount of
impairment as the difference between the recoverable amount of the associate and its carrying value and
recognises the amount in the consolidated income statement. Any impairment loss recognised is not allocated
to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of
that impairment loss is recognised in accordance with HKAS 36 to the extent that the recoverable amount of
the investment subsequently increases.
Profits and losses resulting from upstream and downstream transactions between the Target Group and
its associates are recognised in the Target Group’s consolidated financial statements only to the extent of
unrelated investor’s interests in the associates. Unrealised losses are eliminated unless the transaction provides
evidence of an impairment of the asset transferred. Accounting policies of associates have been changed
where necessary to ensure consistency with the policies adopted by the Target Group.
Gains or losses on dilution of equity interests in associates are recognised in the consolidated income
statement.
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-makers. The chief operating decision-makers, who are responsible for allocating resources and
assessing performance of the operating segments, have been identified as the executive Directors and certain senior
managements who make strategic decisions.
Property, plant and equipment other than construction in progress are stated at cost less subsequent
accumulated depreciation and subsequent impairment losses. Cost includes any costs directly attributable to bringing
the asset to the location and condition necessary for it to be capable of operating in the manner intended by
management and, for qualifying assets, borrowing costs capitalised in accordance with the Target Group’s accounting
policy. Depreciation of these assets commences when the assets are ready for their intended use.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Target Group and the
cost of the item can be measured reliably. All other repairs and maintenance are charged to the consolidated income
statement during the period in which they are incurred.
Depreciation of property, plant and equipment (other than construction in progress) is calculated using the
straight-line method to allocate their costs less accumulated impairment losses over their estimated useful lives to
their residual values.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at end of each reporting
period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount (note 2.7). Such impairment losses are recognised in the
consolidated income statement.
– IID-11 –
Gains or losses on disposals are determined by comparing the net sales proceeds with the carrying amount of
the relevant assets and are recognised in the consolidated income statement.
2.5 Construction in progress
Construction in progress represents property, plant and equipment under construction and pending installation
and is stated at cost less accumulated impairment losses, if any. Cost includes the costs of construction of buildings,
the costs of plant and machinery, direct labour costs and overheads and, for qualifying assets, borrowing costs
capitalised in accordance with the Target Group’s accounting policy. No provision for depreciation is made on
construction in progress until such time as the relevant assets are completed and are available for the intended use.
When the assets concerned are brought into use, the costs are transferred to the appropriate categories of property,
plant and equipment and depreciated in accordance with the policy as stated in note 2.4 above.
2.6 Leases
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration.
For contracts entered into or modified or arising from business combinations on or after the date of
initial application, the Target Group assesses whether a contract is or contains a lease based on the definition
under HKFRS 16 at inception, modification date or acquisition date, as appropriate. Such contract will not be
reassessed unless the terms and conditions of the contract are subsequently changed.
For a contract that contains a lease component and one or more additional lease or non-lease
components, the Target Group allocates the consideration in the contract to each lease component on the basis
of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease
components.
Non-lease components are separated from lease component on the basis of their relative stand-alone
prices.
As a practical expedient, leases with similar characteristics are accounted on a portfolio basis when the
Target Group reasonably expects that the effects on the consolidated financial statements would not differ
materially from individual leases within the portfolio.
The Target Group applies the short-term lease recognition exemption to leases of offices and
equipment that have a lease term of 12 months or less from the commencement date and do not contain a
purchase option. It also applies the recognition exemption for lease of low-value assets. Lease payments on
short-term leases and leases of low-value assets are recognised as expense on a straight-line basis or another
systematic basis over the lease term.
Right-of-use assets
. any lease payments made at or before the commencement date, less any lease incentives
received;
. an estimate of costs to be incurred by the Target Group in dismantling and removing an

underlying asset, restoring the site on which it is located or restoring the underlying asset to the
condition required by the terms and conditions of the lease.
– IID-12 –
Right-of-use assets in which the Target Group is reasonably certain to obtain ownership of the
underlying leased assets at the end of the lease term are depreciated from commencement date to the end of
the useful life. Otherwise, right-of-use assets are depreciated on a straight-line basis over the shorter of its
estimated useful life and the lease term.
When the Target Group obtains ownership of the underlying leased assets at the end of the lease term,
upon exercising purchase options, the carrying amount of the relevant right-of-use asset is transferred to
property, plant and equipment.
The Target Group presents right-of-use assets as a separate line item on the consolidated statement of
financial position.
Lease liabilities
At the commencement date of a lease, the Target Group recognises and measures the lease liability at
the present value of lease payments that are unpaid at that date. In calculating the present value of lease
payments, the Target Group uses the incremental borrowing rate at the lease commencement date if the
interest rate implicit in the lease is not readily determinable.
. variable lease payments that depend on an index or a rate, initially measured using the index or
rate as at the commencement date;
. the exercise price of a purchase option if the Target Group is reasonably certain to exercise the
option; and
. payments of penalties for terminating a lease, if the lease term reflects the Target Group
exercising an option to terminate the lease.
Variable lease payments that reflect changes in market rental rates are initially measured using the
market rental rates as at the commencement date. Variable lease payments that do not depend on an index or a
rate are not included in the measurement of lease liabilities and right-of-use assets, and are recognised as
expense in the period in which the event or condition that triggers the payment occurs.
The Target Group remeasures lease liabilities (and makes a corresponding adjustment to the related
right-of-use assets) whenever:
. the lease term has changed or there is a change in the assessment of exercise of a purchase
option, in which case the related lease liability is remeasured by discounting the revised lease
payments using a revised discount rate at the date of reassessment.
The Target Group presents lease liabilities as a separate line item on the consolidated statement of
financial position.
Lease modifications
The Target Group accounts for a lease modification as a separate lease if:
. the modification increases the scope of the lease by adding the right to use one or more
underlying assets; and
. the consideration for the leases increases by an amount commensurate with the stand-alone price
for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the
– IID-13 –
For a lease modification that is not accounted for as a separate lease, the Target Group remeasures the
lease liability based on the lease term of the modified lease by discounting the revised lease payments using a
revised discount rate at the effective date of the modification.
The Target Group accounts for the remeasurement of lease liabilities by making corresponding
adjustments to the relevant right-of-use asset. When the modified contract contains a lease component and one
or more additional leases or non-lease components, the Target Group allocates the consideration in the
modified contract to each lease component on the basis of the relative stand-alone price of the lease
component and the aggregate stand-alone price of the non-lease components.
Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying
amount exceeds its recoverable amount.
The recoverable amounts of property, plant and equipment and right-of-use assets are estimated individually.
When it is not possible to estimate the recoverable amount of an asset individually, the Target Group estimates the
recoverable amount of the cash-generating unit (‘‘CGU’’) to which the asset belongs.
In addition, the Target Group assesses whether there is indication that corporate assets may be impaired. If
such indication exists, corporate assets are also allocated to individual CGU, when a reasonable and consistent basis
of allocation can be identified, or otherwise they are allocated to the smallest group of CGU for which a reasonable
and consistent allocation basis can be identified.
The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset (or a
CGU) for which the estimates of future cash flows have not been adjusted.
amount of the asset (or a CGU) is reduced to its recoverable amount. For corporate assets or portion of corporate
assets which cannot be allocated on a reasonable and consistent basis to a CGU, the Target Group compares the
carrying amount of a group of CGUs, including the carrying amounts of the corporate assets or portion of corporate
assets allocated to that group of CGUs, with the recoverable amount of the Target Group of CGUs. In allocating the
impairment loss, the impairment loss is allocated first to reduce the carrying amount of any goodwill (if applicable)
and then to the other assets on a pro-rata basis based on the carrying amount of each asset in the unit or the Target
Group of CGUs. The carrying amount of an asset is not reduced below the highest of its fair value less costs of
disposal (if measurable), its value in use (if determinable) and zero. The amount of the impairment loss that would
otherwise have been allocated to the asset is allocated pro rata to the other assets of the unit or the Target Group of
CGUs. An impairment loss is recognised immediately in profit or loss.
Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at each
reporting date.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or a CGU or a group of
CGUs) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does
not exceed the carrying amount that would have been determined had no impairment loss been recognised for the
asset (or a CGU or a group of CGUs) in prior years. A reversal of an impairment loss is recognised immediately in
profit or loss.
. the financial assets is held within a business model whose objective is to collect contractual
cash flows; and
. the contractual term give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
Financial assets that meet the following conditions are subsequently measured at FVTOCI:
. the financial asset is held within a business model whose objective is achieved by both selling
and collecting contractual cash flows; and
– IID-14 –
. the contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
All other financial assets are subsequently measured at fair value through profit or loss (‘‘FVTPL’’),
except that at the date of initial application of HKFRS 9/initial recognition of a financial asset the Target
Group may irrevocably elect to present subsequent changes in fair value of an equity investment in other
comprehensive income if that equity investment is neither held for trading nor contingent consideration
recognised by an acquirer in a business combination to which HKFRS 3 Business Combinations applies.
. on initial recognition it is a part of a portfolio of identified financial instruments that the Target
Group manages together and has a recent actual pattern of short-term profit-taking; or
In addition, the Target Group may irrevocably designate a financial asset that are required to be
measured at the amortised cost or FVTOCI as measured at FVTPL if doing so eliminates or significantly
reduces an accounting mismatch.
(a) Amortised cost and interest income
Interest income is recognised using the effective interest method for financial assets measured
subsequently at amortised cost. For financial instruments other than purchased or originated credit-impaired
financial assets, interest income is calculated by applying the effective interest rate to the gross carrying
amount of a financial asset, except for financial assets that have subsequently become credit-impaired (see
below). For financial assets that have subsequently become credit-impaired, interest income is recognised by
applying the effective interest rate to the amortised cost of the financial asset from the next reporting period.
If the credit risk on the credit impaired financial instrument improves so that the financial asset is no longer
credit-impaired, interest income is recognised by applying the effective interest rate to the gross carrying
amount of the financial asset from the beginning of the reporting period following the determination that the
asset is no longer credit impaired.
(b) Debt instruments classified as at FVTOCI
Subsequent changes in the carrying amounts for debt instruments classified as at FVTOCI are
recognised in other comprehensive income and accumulated under the heading of FVTOCI reserve.
Impairment allowance are recognised in profit or loss with corresponding adjustment to other comprehensive
income without reducing the carrying amounts of these debt instruments. When these debt instruments are
derecognised, the cumulative gains or losses previously recognised in other comprehensive income are
reclassified to profit or loss.
(c) Equity instruments designated as at FVTOCI
Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and
losses arising from changes in fair value recognised in other comprehensive income and accumulated in the
FVTOCI reserve, and are not subject to impairment assessment. The cumulative gain or loss will not be
reclassified to profit or loss on disposal of the equity investments, and will be transferred to retained earnings.
Dividends from these investments in equity instruments are recognised in profit or loss when the
Target Group’s right to receive the dividends is established, unless the dividends clearly represent a recovery
of part of the cost of the investment. Dividends are included in ‘‘other gains and losses, net’’ in the
consolidated income statement.
The Target Group performs impairment assessment under expected credit loss (‘‘ECL’’) model on
financial assets (including accounts receivable, deposits and other receivables, restricted deposits and cash and
cash equivalents) which are subject to impairment under HKFRS 9. The amount of ECL is updated at each
reporting date to reflect changes in credit risk since initial recognition.
Lifetime ECL represents the ECL that will result from all possible default events over the expected life
of the relevant instrument. In contrast, 12-month (‘‘12m’’) ECL represents the portion of lifetime ECL that is
expected to result from default events that are possible within 12 months after the reporting date. Assessment
– IID-15 –
is done based on the Target Group’s historical credit loss experience, adjusted for factors that are specific to
the debtors, general economic conditions and an assessment of both the current conditions at the reporting
date as well as the forecast of future conditions.
The Target Group always recognises lifetime ECL for accounts receivable other than accounts
receivable with significant financing components which is included in non-current portion of accounts
receivables. The ECL on these assets are assessed individually.
For accounts receivable with significant financing component and all other instruments, the Target
Group measures the loss allowance equal to 12m ECL, unless when there has been a significant increase in
credit risk since initial recognition or the financial instrument is not determined to have low credit risk at the
reporting date, the Target Group recognises lifetime ECL. The assessment of whether lifetime ECL should be
recognised is based on significant increases in the likelihood or risk of a default occurring since initial
recognition.
In assessing whether the credit risk has increased significantly since initial recognition, the Target
Group compares the risk of a default occurring on the financial instrument as at the reporting date with the
risk of a default occurring on the financial instrument as at the date of initial recognition. In making this
assessment, the Target Group considers both quantitative and qualitative information that is reasonable and
supportable, including historical experience and forward-looking information that is available without undue
cost or effort.
In particular, the following information is taken into account when assessing whether credit risk has
increased significantly:
. an actual or expected significant deterioration in the financial instruments external (if available)
or internal credit rating;
. significant deterioration in external market indicators of credit risk, e.g. a significant increase in
the credit spread, the credit default swap prices for the debtor;
. existing or forecast adverse changes in business, financial or economic conditions that are
expected to cause a significant decrease in the debtor’s ability to meet its debt obligations;

environment of the debtor that results in a significant decrease in the debtor’s ability to meet its
debt obligations.
increased significantly since initial recognition when contractual payments are more than 30 days past due,
unless the Target Group has reasonable and supportable information that demonstrates otherwise.
Despite the foregoing, the Target Group assumes that the credit risk on a debt instrument has not
increased significantly since initial recognition if the debt instrument is determined to have low credit risk at
the reporting date. A debt instrument is determined to have low credit risk if (i) it has a low risk of default,
(ii) the borrower has a strong capacity to meet its contractual cash flow obligations in the near term and (iii)
adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce
the ability of the borrower to fulfil its contractual cash flow obligations. The Target Group considers a debt
instrument to have low credit risk when it has an internal or external credit rating of ‘‘investment grade’’ as
per globally understood definitions.
The Target Group regularly monitors the effectiveness of the criteria used to identify whether there has
been a significant increase in credit risk and revises them as appropriate to ensure that the criteria are capable
of identifying significant increase in credit risk before the amount becomes past due.
For internal credit risk management, the Target Group considers an event of default occurs when
information developed internally or obtained from external sources indicates that the debtor is unlikely to pay
its creditors, including the Target Group, in full (without taking into account any collaterals held by the
Target Group).
– IID-16 –
Irrespective of the above, the Target Group considers that default has occurred when a financial asset
is more than 90 days past due (except for clean energy power price premium) unless the Target Group has
reasonable and supportable information to demonstrate that a more lagging default criterion is more
appropriate.
A financial asset is credit-impaired when one or more events of default that have a detrimental impact
on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is
credit-impaired includes observable data about the following events:
. the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s
financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not
otherwise;
. it is becoming probable that the borrower will enter bankruptcy or other financial
reorganisation;
losses.
Write-off policy
The Target Group writes off a financial asset when there is information indicating that the counterparty
is in severe financial difficulty and there is no realistic prospect of recovery, for example, when the
counterparty has been placed under liquidation or has entered into bankruptcy proceedings. Financial assets
written off may still be subject to enforcement activities under the Target Group’s recovery procedures, taking
into account legal advice where appropriate. A write-off constitutes a derecognition event. Any subsequent
recoveries are recognised in profit or loss.
The measurement of ECL is a function of the probability of default, loss given default (i.e., the
magnitude of the loss if there is a default) and the exposure at default. The assessment of the probability of
default and loss given default is based on historical data adjusted by forward-looking information. Estimation
of ECL reflects an unbiased and probability-weighted amount that is determined with the respective risks of
default occurring as the weights.
Generally the ECL is the difference between all contractual cash flows that are due to the Target Group
in accordance with the contract and the cash flows that the Target Group expects to receive, discounted at the
effective interest rate determined at initial recognition.
Where ECL is measured on a collective basis or cater for cases where evidence at the individual
instrument level may not yet be available, the financial instruments are grouped on the following basis:
. Nature of financial instruments (i.e., the Target Group’s other receivables are assessed as a
separate group. Amounts due from related parties are assessed for expected credit losses on an
individual basis);
. Past-due status;
The Target Grouping is regularly reviewed by management to ensure the constituents of each group
continue to share similar credit risk characteristics.
Interest income is calculated based on the gross carrying amount of the financial asset unless the
financial asset is credit impaired, in which case interest income is calculated based on amortised cost of the
financial asset.
– IID-17 –
Except for debt instruments that are measured at FVTOCI, the Target Group recognises an impairment
loss or reversal in profit or loss for all financial instruments by adjusting their carrying amount, with the
exception of accounts receivable where the corresponding adjustment is recognised through a loss allowance
account. For debt instruments that are measured at FVTOCI, the loss allowance is recognised in other
comprehensive income and accumulated in the FVTOCI reserve without reducing the carrying amounts of
these debt instruments. Such amount represents the changes in the FVTOCI reserve in relation to accumulated
loss allowance.
The Target Group derecognises a financial asset only when the contractual rights to the cash flows
from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another entity. If the Target Group neither transfers nor retains substantially all the
risks and rewards of ownership and continues to control the transferred asset, the Target Group recognises its
retained interest in the asset and an associated liability for amounts it may have to pay. If the Target Group
retains substantially all the risks and rewards of ownership of a transferred financial asset, the Target Group
continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds
received.
On derecognition of a financial asset measured at amortised cost, the difference between the asset’s
carrying amount and the sum of the consideration received and receivable is recognised in profit or loss.
On derecognition of an investment in a debt instrument classified as at FVTOCI, the cumulative gain

or loss previously accumulated in the FVTOCI reserve is reclassified to profit or loss.
On derecognition of an investment in equity instrument which the Target Group has elected on initial
recognition to measure at FVTOCI, the cumulative gain or loss previously accumulated in the FVTOCI
reserve is not reclassified to profit or loss, but is transferred to retained earnings.
Debt and equity instruments are classified as either financial liabilities or as equity in accordance with
the substance of the contractual arrangements and the definitions of a financial liability and an equity
instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments issued by the Target Company are recognised at the
proceeds received, net of direct issue costs.
Perpetual securities
Perpetual securities are classified as equity if they are non-redeemable, or redeemable only at the
issuer’s option, and any interest and distributions are discretionary. Interest and distributions on perpetual
securities classified as equity are recognised as distributions within equity.
The perpetual notes and other perpetual instruments issued by the Target Company are recognised as
‘‘Other equity instruments’’.
All financial liabilities including bank borrowings, other borrowings, lease liabilities, other payables
and accrued charges, accounts and bills payables, and other non-current liabilities are subsequently measured
at amortised cost using the effective interest method.
Financial assets and liabilities are offset and the net amount reported in the consolidated statement of
financial position when there is a legally enforceable right to offset the recognised amounts and there is an
intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally
enforceable right must not be contingent on future events and must be enforceable in the normal course of
business and in the event of default, insolvency or bankruptcy of the Target Group or the counterparty.
– IID-18 –
Cash and cash equivalents include cash in hand, deposits held at call with banks and with other financial
institutions and other short-term highly liquid investments with original maturities of three months or less. Restricted
deposits are separately disclosed from cash and cash equivalents.
2.11 Inventories
Inventories comprise consumable supplies and spare parts held for consumption and usage and are stated at
the lower of cost and net realisable value after provision for obsolete items, and are expensed to repairs and
maintenance expense when used/consumed, or capitalised to property, plant and equipment when installed, as
appropriate using weighted average method. Cost comprises purchase price and other costs incurred in bringing the
inventories to their present location and condition and excludes borrowing costs.
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are
subsequently carried at amortised cost; any difference between the proceeds (net of transaction costs) and the
redemption value is recognised in the consolidated income statement over the period of the borrowings using the
effective interest method.
Borrowings are classified as current liabilities unless the Target Group has an unconditional right to defer
settlement of the liability for at least 12 months after the end of the reporting period.
General and specific borrowing costs directly attributable to the acquisition, construction or production of
qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended
use or sale, are added to the cost of those assets, until such time as these assets are substantially ready for their
intended use or sale.
Any specific borrowing that remains outstanding after the related asset is ready for its intended use or sale is
included in the general borrowing pool for calculation of capitalisation rate on general borrowings. Investment
income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is
deducted from the borrowing costs eligible for capitalisation.
The tax expense for the year/period comprises current and deferred income tax. Tax is recognised in the
consolidated income statement, except to the extent that it relates to items recognised in other comprehensive income
or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity,
respectively.
The current income tax is calculated on the basis of the tax laws enacted or substantively enacted at the
end of reporting period in the places where the Target Company and its subsidiaries, associates and joint
ventures operate and generate taxable income. Management periodically evaluates positions taken in tax
returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes
provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
In assessing any uncertainty over income tax treatments, the Target Group considers whether it is
probable that the relevant tax authority will accept the uncertain tax treatment used, or proposed to be used by
individual group entities in their income tax filings. If it is probable, the current and deferred taxes are
determined consistently with the tax treatment in the income tax filings. If it is not probable that the relevant
taxation authority will accept an uncertain tax treatment, the effect of each uncertainty is reflected by using
either the most likely amount or the expected value.
Deferred income tax is recognised, using the liability method, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial
statements. However, deferred income tax liabilities are not recognised if they arise from the initial
recognition of goodwill, the deferred income tax is not accounted for if it arises from initial recognition of an
asset or liability in a transaction other than a business combination that at the time of the transaction affects
neither accounting nor taxable profits or losses. Deferred income tax is determined using tax rates (and laws)
that have been enacted or substantively enacted by the end of reporting period and are expected to apply when
the related deferred income tax asset is realised or the deferred income tax liability is settled.
– IID-19 –
Deferred income tax assets are recognised only to the extent that it is probable that future taxable
profits will be available against which the temporary differences can be utilised.
Deferred income tax liabilities are provided on taxable temporary differences arising from investments
in subsidiaries, associates and joint ventures, except for deferred income tax liability where the timing of the
reversal of the temporary difference is controlled by the Target Group and it is probable that the temporary
difference will not reverse in the foreseeable future. Generally, the Target Group is unable to control the
reversal of the temporary difference for associates. Only where there is an agreement in place that gives the
Target Group the ability to control the reversal of the temporary difference that deferred income tax liability
is not recognised.
Deferred income tax assets are recognised on deductible temporary differences arising from
investments in subsidiaries, associates and joint ventures only to the extent that it is probable the temporary
difference will reverse in the future and there are sufficient taxable profits available against which the
temporary difference can be utilised.
For the purposes of measuring deferred tax for leasing transactions in which the Target Group
recognises the right-of-use assets and the related lease liabilities, the Target Group first determines whether
the tax deductions are attributable to the right-of-use assets or the lease liabilities.
For leasing transactions in which the tax deductions are attributable to the lease liabilities, the Target
Group applies HKAS 12 Income Taxes requirements to the leasing transaction as a whole. Temporary
differences relating to right-of-use assets and lease liabilities are assessed on a net basis. Excess of
depreciation on right-of-use assets over the lease payments for the principal portion of lease liabilities results
in net deductible temporary differences.
(c) Offsetting
Deferred income tax assets and liabilities are offset when there is a legally enforceable rights to offset
current income tax assets against current income tax liabilities and when the deferred income tax assets and
liabilities relate to income taxes levied to the same taxable entity by the same taxation authority.
2.14 Employee benefits
The Target Group contributes on a monthly basis to various defined contribution plans organised by
the relevant municipal and provincial governments in the PRC based on certain percentage of the relevant
employees’ monthly salaries. The municipal and provincial governments undertake to assume the retirement
benefit obligations payable to all existing and future retired employees under these plans and the Target
Group has no further constructive obligation for any post-retirement benefits beyond the contributions made.
Contributions to these plans are expensed as incurred.
All contributions to pension plans are fully and immediately vested and the Target Group had no
unvested benefits available to reduce its future contributions.
The expected cost of bonus payments is recognised as a liability when the Target Group has a present
legal or constructive obligation as a result of services rendered by employees and a reliable estimate of the
obligation can be made. Liabilities of bonus plan are expected to be settled within 12 months and are
measured at the amounts expected to be paid when they are settled.
2.15 Provisions
Provisions (including provisions for inundation compensation) are recognised when the Target Group has a
present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be
required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future
operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement
is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of
an outflow with respect to any one item included in the same class of obligations may be small.
– IID-20 –
Provisions are measured at the present value of the expenditures expected to be required to settle the
obligations using a pre-tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest
expense.
Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If
it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the
obligation, the provision shall be reversed.
Grants and subsidies from the government are recognised at their fair values for monetary asset where there is
a reasonable assurance that the grant or subsidy will be received and the Target Group will comply with all attached
conditions.
Government grants and subsidies relating to costs are deferred and recognised in the consolidated income
statement over the period necessary to match them with the costs that they are intended to compensate.
Government grants and subsidies relating to property, plant and equipment and other environmental
improvement projects are included in non-current liabilities as deferred income and are credited to the consolidated
income statement on a straight-line basis over the expected lives of the related assets and projects.
The Target Group recognises revenue from sales of electricity to regional and provincial power grid
companies, provision of power generation, subcontracting services and sales of energy storage equipment.
The Target Group recognises revenue when (or as) a performance obligation is satisfied, i.e., when ‘‘control’’
of the goods or services underlying the particular performance obligation is transferred to the customer.
A performance obligation represents a good and services (or a bundle of goods or services) that is distinct or
a series of distinct goods or services that are substantially the same.
Control is transferred over time and revenue is recognised over time by reference to the progress towards
complete satisfaction of the relevant performance obligation if one of the following criteria is met:
. the customer simultaneously receives and consumes the benefits provided by the Target Group’s
performance as the Target Group performs;
. the Target Group’s performance creates and enhances an asset that the customer controls as the Target
Group performs; or
. the Target Group’s performance does not create an asset with alternative use to the Target Group and
the Target Group has an enforceable right to payment for performance completed to date.
Otherwise, revenue is recognised at a point in time when the customer obtains control of the distinct good or
service.
In determining the transaction price, the Target Group adjusts the promised amount of consideration
for the effects of the time value of money if the timing of payments agreed (either explicitly or implicitly)
provides the customer or the Target Group with a significant benefit of financing the transfer of goods or
services to the customer. In those circumstances, the contract contains a significant financing component. A
significant financing component may exist regardless of whether the promise of financing is explicitly stated
in the contract or implied by the payment terms agreed to by the parties to the contract.
For contracts where the period between payment and transfer of the associated goods or services is less
than one year, the Target Group applies the practical expedient of not adjusting the transaction price for any
significant financing component.
For contracts where the Target Group transferred the associated goods or services before payments
from customers in which the Target Group adjusts for the promised amount of consideration for significant
financing components, the Target Group applies a discount rate that would be reflected in a separate financing
– IID-21 –
transaction between the Target Group and the customer at contract inception. The Target Group recognises
interest income during the period between the payment from customers and the transfer of the associated
goods or services.
(i) Sales of electricity to regional and provincial power grid companies, and provision of power
generation
Revenue is recognised upon transmission of electricity to the power grid when the control of the
electricity is transferred at the same time.
(ii) Dividend income
Dividend income is recognised when the shareholders’ right to receive payment has been
established, it is probable that the economic benefits associated with the dividend will flow to the
Target Group and the amount of the dividend can be measured reliably.
(iii) Interest income
Interest income is recognised over time using the effective interest method.
For the purposes of these financial statements, a party is considered to be related to the Target Group if:
(a) the party, is a person or a close member of that person’s family and if that person,
(ii) has significant influence over the Target Group; or
(iii) is a member of the key management personnel of the Target Group or of a parent of the Target
Group.
(i) the entity and the Target Group are members of the same group.
(ii) one entity is an associate or joint venture of the other entity (or an associate or joint venture of
a member of a group of which the other entity is a member).
(iii) the entity and the Target Group are joint ventures of the same third party.
(iv) one entity is a joint venture of a third entity and the other entity is an associate of the third
entity.
(v) the entity is a post-employment benefit plan for the benefit of employees of either the Target
Group or an entity related to the Target Group.
(vi) the entity is controlled or jointly controlled by a person identified in (a).
management personnel of the entity (or of a parent of the entity).
(viii) the entity, or any member of a group of which it is a part, provides key management personnel
services to the Target Group or to the parent of the Target Group.
Close members of the family of a person are those family members who may be expected to influence, or be
influenced by, that person in their dealings with the entity.
– IID-22 –
3. CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS
Estimates and judgements are continually evaluated and are based on historical experience and other factors,
including expectations of future events that are believed to be reasonable under the circumstances.
The Target Group makes estimates and assumptions concerning the future. The resulting accounting estimates will,
by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
(a) Impairment of non-financial assets
The Target Group’s property, plant and equipment and right-of-use assets are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Target
Group also re-measures the assets and disposal groups classified as held for sale annually to see if impairment
provision is needed. The recoverable amounts of property, plant and equipment and right-of-use assets have been
determined based on higher of value in use calculations, which is measured at the net present value of future cash
flows which are estimated based upon the continued use of the asset in the business, and fair value less costs of
disposal. These calculations require the use of judgements and estimates.
Management judgement is required in the area of asset impairment and fair value assessment particularly in
assessing: (i) whether an event has occurred that may indicate that the related asset values may not be recoverable;
(ii) whether the carrying value of an asset can be supported by the recoverable amount; and (iii) the appropriate key
assumptions to be applied in preparing cash flow projections including whether these cash flow projections are
discounted using an appropriate rate. When it is not possible to estimate the recoverable amount of an individual
asset (including right-of-use assets), the Target Group estimates the recoverable amount of the CGU or group of
CGUs to which the asset belongs. Changing the assumptions selected by management in assessing impairment,
including the future sales volume, expected tariff rates, fuel costs (if applicable), staff costs, the discount rates and
growth rate assumptions in the cash flow projections, could materially affect the net present value used in the
impairment assessment and as a result affect the Target Group’s financial condition and results of operations. If there
is a significant adverse change in the projected performance and resulting future cash flow projections, it may be
necessary to take an impairment charge to the consolidated income statements.
For the years ended 31 December 2020, 2021 and 2022 and the three months ended 31 March 2023,
management has performed impairment assessments based on value in use calculation by measuring the recoverable
amount of certain property, plant and equipment, included in ‘‘Photovoltaic power electricity’’ segment, and ‘‘Wind
power electricity’’ segment.
As at 31 December 2020, the carrying amounts of property, plant and equipment and right-of-use assets were
RMB515,656,000 and RMB17,270,000 respectively, of which no impairment were recognised for the year then
ended.
RMB846,208,000 and RMB34,499,000 respectively, of which no impairment were recognised for the year then
ended.
RMB3,738,389,000 and RMB83,093,000 respectively, of which no impairment were recognised for the year then
ended.
As at 31 March 2023, the carrying amounts of property, plant and equipment and right-of-use assets were
RMB3,853,314,000 and RMB82,174,000 respectively, of which no impairment were recognised for the period then
ended.
(b) Impairment of accounts receivables
The Target Group makes provision for impairment of accounts receivables based on assumptions about risk of
default and ECL rate. The Target Group uses judgement in making these assumptions and selecting the inputs to the
impairment calculation, based on the Target Group’s past history, existing market conditions as well as forward
looking estimates at the end of each reporting period. Note 35.3 provides the basis of the calculation of the loss
allowance.
(c) Useful lives, residual values and depreciation charges of property, plant and equipment
The Target Group’s management determines the estimated useful lives, residual values and related
depreciation charges for the Target Group’s property, plant and equipment, other than construction in progress. This
estimate is based on the historical experience of the actual useful lives and residual values of property, plant and
equipment of similar nature and functions. It could change significantly as a result of technological advancement and
– IID-23 –
innovations in the power industry. Management will adjust the depreciation charge where useful lives or residual
values vary with previously estimated, or it will write-off or write down technically obsolete. Actual economic lives
may differ from estimated useful lives and actual residual values may differ from estimated residual values. Periodic
review could result in a change in depreciable lives and residual values and therefore depreciation charges in the
future periods. As at 31 December 2020, 2021 and 2022 and 31 March 2023, the carrying amount of property, plant
and equipment, other than construction in progress, were RMB515,656,000, RMB830,997,000, RMB3,085,605,000
and RMB3,083,373,000 respectively.
(d) Current and deferred income tax expenses
The Target Group is subject to income taxes in various locations within PRC. Judgement is required in
determining the provision for income taxes in each of these locations. There are transactions and calculations during
the ordinary course of business for which the ultimate tax determination is uncertain. Where the final tax outcome of
these matters is different from the amounts that were initially recorded, such differences will impact the current
income tax and deferred income tax provisions in the period in which such determination is made.
Deferred income tax assets relating to certain temporary differences and tax losses are recognised when
management considers it is probable that future taxable profits will be available against which the temporary
differences or tax losses can be utilised. When the expectation is different from the original estimate, such
differences will impact the recognition of deferred tax assets and taxation amount in the period in which such
estimate is changed.
The chief operating decision maker has been identified as the executive Directors and certain senior management
(collectively referred to as the ‘‘CODM’’) who make strategic decisions. The CODM reviews the internal reporting of the
Target Company and its subsidiaries in order to assess performance and allocate resources. Management has determined the
operating segments based on these reports.
The CODM assesses the performance of the operating segments based on a measure of profit/loss before taxation.
Other information provided to the CODM is measured in a manner consistent with that in the consolidated financial
statements.
Segment assets, deferred income tax assets and corporate assets, which are managed on a central basis.
Segment liabilities exclude deferred tax liabilities, tax payable and corporate liabilities, which are managed on a
central basis.

Photovoltaic
power Wind power
electricity electricity Unallocated Total
RMB’000 RMB’000 RMB’000 RMB’000
Segment revenue
Sales of electricity 68,344 — — 68,344
Segment results 27,563 — — 27,563
Operating profit 27,563 — — 27,563
Finance income 183 — — 183
Finance costs (24,572) — — (24,572)
Profit before income tax 3,174 — — 3,174
Income tax credit 606 — — 606
Profit for the year 3,780 — — 3,780
Amounts included in the measure of segment profit
or loss or segment assets:
Capital expenditure — Property, plant and
equipment, right-of-use assets and prepayments
for construction of power plants 19,337 — — 19,337
Depreciation of property, plant and equipment 30,790 — — 30,790
Depreciation of right-of-use assets 1,502 — — 1,502
– IID-24 –
Photovoltaic
power Wind power
RMB’000 RMB’000 RMB’000 RMB’000
Segment assets
Other segment assets 947,418 — — 947,418
Deferred tax assets 1,128 — — 1,128
financial position 948,546 — — 948,546
Segment liabilities
Other segment liabilities 73,502 — — 73,502
Borrowings 670,090 — — 670,090
Tax payable 237 — — 237
Total liabilities per consolidated statements of
financial position 743,829 — — 743,829

Photovoltaic
power Wind power
RMB’000 RMB’000 RMB’000 RMB’000
Segment revenue
Finance income 4,322 — — 4,322
Finance costs (41,673) — — (41,673)
Share of results of associates 1,102 — — 1,102
Profit before income tax 12,137 — — 12,137
Income tax expense (1,825) — — (1,825)
Profit for the year 10,312 — — 10,312
equipment and right-of-use assets 42,856 1,759 3,913 48,528
Photovoltaic
power Wind power
RMB’000 RMB’000 RMB’000 RMB’000
Segment assets
Other segment assets 1,314,052 — — 1,314,052
Interests in associates 34,962 — — 34,962
financial position 1,354,786 — — 1,354,786
Segment liabilities
Other segment liabilities 219,939 — — 219,939
Borrowings 914,409 — — 914,409
Deferred tax liabilities 2,953 — — 2,953
Tax payable 2,495 — — 2,495
financial position 1,139,796 — — 1,139,796
– IID-25 –

Photovoltaic
power Wind power
RMB’000 RMB’000 RMB’000 RMB’000
Segment revenue
Sales of electricity 118,793 66,245 — 185,038
Segment results 40,133 37,793 19,562 97,488
Operating profit 40,133 37,793 19,562 97,488
Finance income 5,176 59 56 5,291
Finance costs (59,084) (9,671) (460) (69,215)
Share of results of associates 338 — — 338
(Loss)/Profit before income tax (13,437) 28,181 19,158 33,902
Income tax (expense)/credit (6,953) 907 (7,155) (13,201)
(Loss)/Profit for the year (20,390) 29,088 12,003 20,701
Capital expenditure — Property, and equipment and
right-of-use assets 607,739 2,031 63,541 673,311
Depreciation of property, plant and equipment 51,804 20,250 64 72,118
Photovoltaic
power Wind power
RMB’000 RMB’000 RMB’000 RMB’000
Segment assets
Other segment assets 1,992,002 3,039,552 — 5,031,554
Interests in associates — 85,320 — 85,320
Other unallocated assets — — 125,472 125,472
financial position 1,998,628 3,124,872 125,472 5,248,972
Segment liabilities
Other segment liabilities 311,591 111,371 — 422,962
Borrowings 1,448,284 1,968,716 20,018 3,437,018
Deferred tax liabilities 2,812 92,321 — 95,133
Tax payable 8,106 4,081 10,079 22,266
Other unallocated liabilities — — 186,684 186,684
Photovoltaic
power Wind power
RMB’000 RMB’000 RMB’000 RMB’000
Segment revenue
Sales of electricity 26,898 120,785 — 147,683
Segment results (517) 79,604 6,079 85,166
Operating (loss)/profit (517) 79,604 6,079 85,166
Finance income 174 143 12 329
Finance costs (9,293) (18,223) (61) (27,577)
Share of results of associates 1,477 — — 1,477
(Loss)/Profit before income tax (8,159) 61,524 6,030 59,395
Income tax credit/(expense) 1,862 (8,101) (3,489) (9,728)
(Loss)/Profit for the period (6,297) 53,423 2,541 49,667
Capital expenditure — Property, and equipment and
right-of-use assets 143,632 676 19,656 163,964
Depreciation of property, plant and equipment 13,224 35,779 36 49,039
Depreciation of right-of-use assets 919 — — 919
– IID-26 –
As at 31 March 2023
Photovoltaic
power Wind power
RMB’000 RMB’000 RMB’000 RMB’000
Segment assets
Other segment assets 2,314,409 2,908,306 — 5,222,715
Interests in associates — 86,797 — 86,797
Other unallocated assets — — 153,785 153,785
Segment liabilities
Other segment liabilities 298,278 112,441 — 410,719
Borrowings 1,508,643 2,043,481 48,048 3,600,172
Deferred tax liabilities 2,776 90,919 — 93,695
Tax payable 4,312 9,607 4,104 18,023
Other unallocated liabilities — — 111,338 111,338

Photovoltaic
power Wind power
RMB’000 RMB’000 RMB’000 RMB’000
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Segment revenue
Finance income 127 — — 127
Finance costs (8,107) — — (8,107)
Share of results of associates (1,774) — — (1,774)
Loss before income tax (2,649) — — (2,649)
Income tax expense (606) — — (606)
Loss for the period (3,255) — — (3,255)
equipment and right-of-use assets 5,426 — — 5,426
Depreciation of right-of-use assets 420 — — 420
As at 31 December 2020, 2021 and 2022 and 31 March 2023, the Target Group’s assets, liabilities and capital
expenditure were located or utilised in the PRC.
The Target Group’s major customers are regional and provincial power grid companies. For the years ended 31
December 2020, 2021 and 2022 and the three months ended 31 March 2022 and 2023, the Target Group’s external revenue
amounting to RMB67,540,000, RMB119,814,000, RMB183,941,000, RMB23,739,000 and RMB147,425,000 was generated
from one major customer, which accounted for around 99% or more of the Target Group’s external revenue on photovoltaic
power electricity and wind power electricity.
– IID-27 –
5. OTHER INCOME
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Incentive scheme 10 71 100 — 50
Wavier of other payables — 2,300 — — —
Electricity sales services fee income — — 27,325 241 9,513
Operation and maintenance income 5,660 7,428 12,752 2,211 2,834
Provision of fuel pipe income 2,797 2,985 3,254 848 —
Others 1 562 12 14 24
8,468 13,346 43,443 3,314 12,421
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Income relates to the debt securities investment — — 9,647 — 7
Bad debt recovered — 3,840 — — —
— 3,840 9,647 — 7
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Short-term lease expenses 330 1,217 2,607 309 279
Administrative and selling related expenses 935 4,848 9,760 1,755 4,009
Taxes and surcharges 69 90 2,175 29 866
Compensation payment — — 650 — —
Donation — — 100 — —
Others 69 340 780 3 111
1,403 6,495 16,072 2,096 5,265
8. FINANCE INCOME
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Interest income from bank deposits 174 215 185 39 191
Interest income from related parties 9 3,663 5,106 88 138
Interest income from discounting effect on
clean energy power price premium — 444 — — —
183 4,322 5,291 127 329
– IID-28 –
9. FINANCE COSTS
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Interest expenses on:
— bank and other borrowings 23,786 22,093 55,659 5,960 28,669
— borrowings from related parties 401 8,358 13,041 1,062 3,795
— lease liabilities 385 11,222 8,420 1,085 1,158
24,572 41,673 77,120 8,107 33,622
Less: amounts capitalised on qualifying assets
(note) — — (7,905) — (6,045)
24,572 41,673 69,215 8,107 27,577
Note: The borrowing costs have been capitalised at a rate range from 3.05% to 3.55% per annum for the year ended
31 December 2022 and the three months ended 31 March 2023.
10. PROFIT/(LOSS) BEFORE INCOME TAX
Profit/(loss) for the year/period is arrived at after charging/(crediting):
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Auditor’s remuneration 151 229 428 — —
Depreciation:
— Property, plant and equipment 30,791 51,911 72,118 12,563 49,039
— Right-of-use assets 1,502 1,746 3,166 420 919
11. STAFF COSTS
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Staff welfare 2,159 4,332 6,196 551 1,605
Pension costs — defined contribution plans 508 2,331 2,758 200 607
9,800 16,586 24,832 2,770 10,244
12. DIRECTORS’ EMOLUMENTS AND FIVE HIGHEST PAID INDIVIDUALS
12.1 Directors’ emoluments
No emolument was paid or payable to the directors of the Target Group during the Relevant Periods.
During the Relevant Periods, there was no amount paid or payable by the Target Group to the directors as an
inducement to join or upon joining the Target Group as compensation for loss of office. There was no arrangement
under which any director or five highest paid individuals waived or agreed to waive any remuneration during the
Relevant Periods.
– IID-29 –
12.2 Five highest paid individuals
The five highest paid individuals in the Target Group during the Relevant Periods did not include any
director. The emoluments of these five highest individuals for the Relevant Periods are set out below:
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Salaries, wages and bonus 2,249 3,003 2,913 1,038 1,308
Retirement benefit scheme contributions — — — — —
2,249 3,003 2,913 1,038 1,308
Their emoluments were within the band of Nil to HK$1,000,000 (equivalent to Nil to RMB888,000).
13. INCOME TAX (CREDIT)/EXPENSE
The Target Group’s operations in the PRC are subject to the corporate income tax law of the PRC (the ‘‘PRC
Corporate Income Tax’’). The standard PRC Corporate Income Tax rate is 25% on the estimated assessable profits for the
year/period under the law of the PRC on Enterprise Income Tax (the ‘‘EIT Law’’) and implementation regulations of the
EIT Law except that certain subsidiaries were either exempted from PRC Corporate Income Tax or entitled to the
preferential tax rate of 12.5%.
The Target Group engaged in photovoltaic power and wind power projects, under the EIT Law and its relevant
regulations, is entitled tax holidays of first 3-year full exemption followed by 3-year 50% exemption.
Three months ended

2020 2021 2022 2022 2023
(unaudited)
— charge for the year/period — 2,273 14,109 332 11,512
Deferred income tax
— credit for the year/period (606) (448) (908) — (1,784)
(606) 1,825 13,201 606 9,728
Reconciliation between income tax (credit)/expense and accounting profit/(loss) at applicable tax rate are as follows:
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Profit/(loss) before income tax 3,174 12,137 33,902 (2,649) 59,395
Less: Share of result of associates — (1,102) (338) 1,774 (1,477)
3,174 11,035 33,564 (875) 57,918
Calculated at the PRC statutory tax rate of 25% 793 2,758 8,391 (219) 14,480
Effect on tax concession (1,741) (6,257) (2,927) (605) (6,740)
Expenses not deductible for taxation purpose 58 2,248 940 1,430 537
Income tax adjustment from prior year/period — 17 4,549 2,923 (2,945)
Impact of tax rate changes on deferred income at
the beginning of the year/period — 166 — — —
Deductible temporary differences with no deferred
income tax assets 284 (30) (29) — 4,396
Utilisation of tax losses previously not recognised — 2,923 (2,923) (2,923) —
Others — — 5,200 — —
Income tax (credit)/expense (606) 1,825 13,201 606 9,728
14. DIVIDENDS
The Target Company declared and paid dividends of RMB37,000 and RMB9,053,000 during the years ended 31
December 2021 and 2022 respectively. No dividends have been paid, declared or proposed during the year ended 31
December 2020 and the three months ended 31 March 2023.
– IID-30 –
Furniture,
Power fixtures and
generators and Transportation office Construction
Buildings equipment facilities equipment in progress Total
Cost
At 1 January 2020 22,557 549,261 470 159 — 572,447
Additions — 10 292 263 — 565
1 January 2021 22,557 549,271 762 422 — 573,012
Additions — — 271 14,071 15,211 29,553
Acquisition of subsidiaries — 309,084 — 71,752 — 380,836
Written-off (1,143) (26,783) — — — (27,926)
1 January 2022 21,414 831,572 1,033 86,245 15,211 955,475
Additions — 2,158 2,781 2,111 637,573 644,623
Acquisition of subsidiaries 31,180 2,286,761 388 1,351 — 2,319,680
Written-off — — — (6) — (6)
1 January 2023 52,594 3,120,491 4,202 89,701 652,784 3,919,772
Additions — 612 64 206 163,082 163,964
Transfer between categories — 45,925 — — (45,925) —
At 31 March 2023 52,594 3,167,028 4,266 89,907 769,941 4,083,736
At 1 January 2020 918 25,536 101 11 — 26,566
Depreciation charge 1,098 29,606 76 10 — 30,790
1 January 2021 2,016 55,142 177 21 — 57,356
Depreciation charge 1,021 44,448 146 6,296 — 51,911
1 January 2022 3,037 99,590 323 6,317 — 109,267
Depreciation charge 1,318 64,548 285 5,968 — 72,119
Written-off — — — (3) — (3)
1 January 2023 4,355 164,138 608 12,282 — 181,383
Depreciation charge 793 46,418 179 1,649 — 49,039
At 31 March 2023 5,148 210,556 787 13,931 — 230,422
Net book value
At 31 December 2020 20,541 494,129 585 401 — 515,656
At 31 December 2021 18,377 731,982 710 79,928 15,211 846,208
At 31 December 2022 48,239 2,956,353 3,594 77,419 652,784 3,738,389
At 31 March 2023 47,446 2,956,472 3,479 75,976 769,941 3,853,314
Notes:
(a) Depreciation of property, plant and equipment (other than construction in progress) is calculated using the
straight-line method to allocate their costs less accumulated impairment losses over their estimated useful
lives to their residual values, as follows:

Furniture, fixtures and office equipment 5 years
(b) As at 31 December 2020, 2021 and 2022 and 31 March 2023, certain property, plant and equipment of the
Target Group with a net book value of approximately nil, nil, RMB1,345,195,000 and RMB1,323,286,000
were pledged as security for certain bank borrowings (note 25).
– IID-31 –
This note provides information for leases where the Target Group is a lessee.
The Target Group’s right-of-use assets arise from land use rights for photovoltaic and wind power plant projects with
typically lease term of 20 years. Lease terms are negotiated on an individual basis and contain a wide range of different
terms and conditions. The lease agreements do not impose any covenants.
The movements of right-of-use assets are analysed as follows:
Leasehold
Buildings land Total
RMB’000 RMB’000 RMB’000
Cost
At 1 January 2020 — — —
Additions — 18,772 18,772
At 31 December 2020 and 1 January 2021 — 18,772 18,772
Additions — 18,975 18,975
Additions 1,326 27,362 28,688
Acquisition of subsidiaries — 23,072 23,072
At 31 December 2022, 1 January 2023 and
31 March 2023 1,326 88,181 89,507
At 1 January 2020 — — —
Depreciation charge — 1,502 1,502
Depreciation charge — 1,746 1,746
Depreciation charge 331 2,835 3,166
At 31 December 2022 and 1 January 2023 331 6,083 6,414
Depreciation charge 111 808 919
At 31 March 2023 442 6,891 7,333
Net book value
At 31 December 2020 — 17,270 17,270
At 31 December 2021 — 34,499 34,499
At 31 December 2022 995 82,098 83,093
At 31 March 2023 884 81,290 82,174
Note:
For both years, the Target Group leases buildings and leasehold land for its operations. Lease contracts are entered
into for fixed term of 2 to 20 years, but may have extension options as described below. Lease terms are negotiated
on an individual basis and contain a wide range of different terms and conditions. In determining the lease term and
assessing the length of the non-cancellable period, the Target Group applies the definition of a contract and
determines the period for which the contract is enforceable.
The Target Group regularly entered into short-term leases for equipment. As at 31 December 2020, 2021 and 2022
and 31 March 2023, the portfolio of short-term leases was similar to the portfolio of short-term leases to which the
short-term lease expense was recognised and as disclosed in note 7.
The total cash outflow for leases is disclosed in note 27.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, certain right-of-use assets of the Target Group with a
net book value of approximately nil, nil, RMB7,977,000 and RMB7,918,000 were pledged as security for certain
bank borrowings (note 25).
Extension options
The Target Group has extension options in a number of leases for leasehold land. The majority of extension
options held are exercisable only by the Target Group and not by the respective lessors.
– IID-32 –
The Target Group assesses at lease commencement date whether it is reasonably certain to exercise the
extension options. Based on the assessment, the extension option of leasehold land lease was reasonably certain to be
exercised so that the extension period was included in lease period.
In addition, the Target Group reassesses whether it is reasonably certain to exercise an extension option, upon
the occurrence of either a significant event or a significant change in circumstances that is within the control of the
lessee. During the years ended 31 December 2020, 2021 and 2022 and the three months ended 31 March 2023, there
is no such triggering event.
17. INTERESTS IN ASSOCIATES
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Cost of investment in associates — 33,860 84,982 84,982
Share of undistributed post-acquisition reserves — 1,102 338 1,815
— 34,962 85,320 86,797
The followings are the details of the associates:
Proportion of ownership held by subsidiaries

Place of As at
establishment Registered/paid- As at 31 December 31 March Type of Principal
Name of companies and operation in capital 2020 2021 2022 2023 legal entity activities
Shanxi Power Investment Jianneng PRC RMB50,000,000 — — 20% 20% Limited liability Generation and
Technology Co., Ltd.# company sales of
(山西電投建能科技有限公司) electricity
(‘‘Power Investment Jianneng’’)
Shanxi Diantou Clean Energy PRC RMB169,300,000 — 20% — — Limited liability Generation and
Technology Co., Ltd.# (note 37.4) company sales of
(山西電投清潔能源科技有限公司) electricity
(‘‘Diantou Clean Energy’’)
#
The English translation of the name of the company established in the PRC is for reference only. The official
name of this company is in Chinese.
(i) Power Investment Jianneng
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Non-current assets — — 964,897 948,716
Current assets — — 266,623 214,745
Non-current liabilities — — (640,983) (636,584)
Current liabilities — — (163,939) (92,890)
— — 426,598 433,987
Summarised consolidated income statements
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Revenue — — 39,659 — 33,207
Profit for the year/period — — 33,207 — 7,389
– IID-33 –
Reconciliation of summarised unaudited financial information
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Opening net assets — — — 426,598
Net assets of Power Investment Jianneng — — 424,910 —
Profit for the year/period — — 1,688 7,389
Closing net assets — — 426,598 433,987
Interest in associates (at 20%)
— At carrying amount — — 85,320 86,797
(ii) Diantou Clean Energy
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Non-current assets — 817,625 782,904 —
Current assets — 152,788 217,234 —
Non-current liabilities — (630,037) (745,026) —
Current liabilities — (165,565) (87,950) —
— 174,811 167,162 —
Summarised consolidated income statements
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Revenue — 38,161 80,017 14,940 —
Profit/(loss) for the year/period — 5,512 (3,649) (8,874) —
Reconciliation of summarised unaudited financial information
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Opening net assets — — 174,812 —
Net assets of Diantou Clean Energy — 169,300 —
Profit/(loss) for the year/period — 5,512 (7,649) —
Closing net assets — 174,812 167,163 —
Interest in associates (at 20%)
— At carrying amount — 34,962 — —
During the year ended 31 December 2022, the Target Group acquired additional interests in Diantou Clean
Energy from an independent shareholder. Upon completion of the acquisition, Diantou Clean Energy became
subsidiary of the Target Group with remeasurement gain on the interests in associates of RMB2,198,000 and
transferred to subsidiary in amount of RMB37,160,000 (note 37.4).
18. FINANCIAL ASSETS MEASURED AT AMORTISED COST
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Unlisted debt securities in the PRC — — 10,000 10,000
Note: Unlisted debt securities mainly represent investment in unlisted debt issued by private entities established in
the PRC. The investment in debt instruments is not held for trading. Instead, it is held for medium to long-
term strategic purposes.
– IID-34 –
19. INVENTORIES
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Consumables 10 588 1,476 1,139
20. ACCOUNTS RECEIVABLES
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Accounts receivable from regional and provincial power
grid companies (note (b) 49,860 174,644 653,556 735,065
Analysed for reporting purpose as:
— Non-current (note (b) 46,399 161,932 318,842 346,639
— Current 3,461 12,712 334,714 388,426
49,860 174,644 653,556 735,065
Notes:
(a) To measure the ECL of accounts receivable, accounts receivables have been assessed individually upon the
application of HKFRS 9. The loss allowance of the accounts receivable as at 31 December 2020, 2021 and
2022 and 31 March 2023 was insignificant.
(b) The ageing analysis of the accounts receivables based on invoice date is as follows:
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Unbilled 46,399 161,932 318,842 346,639
1 to 3 months 3,461 12,712 334,714 388,203
3 to 6 months — — — 223
49,860 174,644 653,556 735,065
The accounts receivable that are neither past due nor impaired have been assessed by reference to the
historical information about counterparty default rates. The existing counterparties did not have significant
default in the past.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, accounts receivable from regional and
provincial power grid companies include clean energy power price premium receivable of RMB46,399,000,
RMB161,932,000, RMB318,842,000 and RMB346,639,000, which is unbilled and is stated after discounting.
The clean energy power price premium, which is a component of the government-approved on-grid tariff for
wind and photovoltaic power generation, is recognised as revenue from sales of electricity in the consolidated
income statements of the Target Group for its wind and photovoltaic power projects.
The financial resource for the clean energy power price premium is the national renewable energy fund that
accumulated through a special levy on the consumption of electricity. Pursuant to Caijian [2012] No. 102
Notice on the Interim Measures for Administration of Subsidy Funds for Tariff Premium of Renewable
Energy (可再生能源電價附加補助資金管理暫行辦法) jointly issued by the Ministry of Finance (the
‘‘MOF’’), the National Development and Reform Commission (the ‘‘NDRC’’) and the National Energy
Administration (the ‘‘NEA’’) in March 2012, the standardised application and approval procedures on a
project by project basis for the settlement of the tariff premium came into force since 2012, and such
applications are accepted and approved batch by batch jointly by the MOF, the NDRC and the NEA at
intervals in form of announcing renewable energy subsidy catalogues (the ‘‘Subsidy Catalogue’’).
In February 2020, the MOF, the NDRC and the NEA jointly issued new guidelines and notices, i.e., Caijian
[2020] No. 4 Guidelines on the Stable Development of Non-Water Renewable Energy Generation (關於促進
非水可再生能源發電健康發展的若干意見) and Caijian [2020] No. 5 Measures for Administration of Subsidy
Funds for Tariff Premium of Renewable Energy (可再生能源電價附加資金管理辦法) (collectively referred to
as the ‘‘New Guidelines’’). Pursuant to the New Guidelines, the quota of new subsidies are decided based on
the scale of subsidy funds, there will not be any new Subsidy Catalogue to be published for tariff premium
– IID-35 –
and as an alternative, power grid companies will publish lists of renewable energy projects qualified for tariff
premium (the ‘‘Subsidy List’’) periodically after the renewable energy generators have gone through certain
approval and information publicity process.
Based on the above New Guidelines and their past experience, the Directors estimate that there are no
foreseeable obstacles that would lead to the application not being approved before entering into either the
Subsidy Catalogue or the Subsidy List. It is expected that the Target Group’s wind and photovoltaic power
projects will be listed as qualified projects for tariff premium after 31 December 2023 and the corresponding
premium receivables are estimated to be recovered after twelve months from the reporting date. Therefore, the
Directors consider the renewable energy electricity sales contract for projects before entering into the Subsidy
Catalogue or the Subsidy List contains a significant financing component. For the years ended 31 December
2020, 2021, 2022 and the three months ended 31 March 2023, the respective clean energy power price
premiums were adjusted for this financing component based on an effective interest rate of 4.01%, 4.01%,
3.81%, 3.81% per annum respectively.
(c) As at 31 December 2020, 2021 and 2022 and 31 March 2023, certain of the bank borrowings and lease
liabilities (notes 25 and 27) were secured by the rights on certain accounts receivable. The accounts
receivable pledged under these debts as at 31 December 2020, 2021 and 2022 and 31 March 2023 amounted
to approximately RMB49,317,000, RMB73,983,000, RMB497,556,000 and RMB553,269,000 respectively.
(d) Apart from certain clean energy power price premium receivables of RMB46,399,000, RMB161,932,000,
RMB318,842,000 and RMB346,639,000 as at 31 December 2020, 2021 and 2022 and 31 March 2023
respectively which are stated after discounting, the fair values of the remaining accounts receivables
approximate their carrying amounts as the impact of discounting is not significant. All accounts receivables
are denominated in RMB.
Prepayments, deposits and other receivables mainly represent current portion of deductible value-added tax, deposits
and other receivables.
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Prepayments 26,600 16,384 21,859 37,719
Deposits 15,500 16,875 23,385 23,620
Other receivables 8,267 44,908 57,870 49,707
Deductible value-added tax 54,508 71,245 113,182 126,855
104,875 149,412 216,296 237,901
22. RESTRICTED DEPOSITS AND CASH AND CASH EQUIVALENTS
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Restricted deposits (note (a) — 100 1,155 1,140
Cash at banks and in hand (note (b) 259,747 108,601 453,061 455,767
Denominated in:
RMB 259,747 108,701 454,216 456,907
Notes:
(a) As at 31 December 2020, 2021 and 2022 and 31 March 2023, the restricted deposits of the Target Group are
interest bearing from 0.25% to 0.3% per annum.
(b) The Target Group’s cash at banks are interest bearing from 0.25% to 0.385% per annum.
– IID-36 –
23. SHAREHOLDERS’ EQUITY
(a) Paid-in capital
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
At the beginning of year/period 195,900 195,900 195,900 458,252
Capital injection — — 262,352 —
At the ended of year/period 195,900 195,900 458,252 458,252
(b) Safety production reserve
Pursuant to Caizi [2012] No. 16, the ‘‘Administrative Measures for the Collection and Utilisation of
Enterprise Work Safety Funds’’ jointly published by the Ministry of Finance and the Ministry of Emergency
Management on 14 February 2012, the Target Group provided for safety production expenses which were recognised
in consolidated statement of profit or loss and included in reserve during the years ended 31 December 2020, 2021
and 2022 and the three months ended 31 March 2022 and 2023.
(c) Statutory reserve
In accordance with the relevant laws and regulations for the Target Group, it is required to transfer at least
10% of its annual net profit determined in accordance with Accounting Standards for Business Enterprises issued by
the Ministry of Finance of PRC, after offsetting any prior years’ losses, to the statutory reserve. When the balance of
such a reserve reaches 50% of the registered capital of the respective company, any further appropriation is at the
discretion of shareholders. The statutory reserve can be used to offset prior years’ losses, if any, and may be
converted into share capital by issuing new shares to shareholders in proportion to their existing share holding or by
increasing the par value of the shares currently held by them, provided that the remaining balance of the reserve after
such an issue is not less than 25% of registered capital. The statutory reserve is non-distributable.
On 28 October 2022, the Target Company entered into the perpetual debt investment contracts with Bridge Trust
Co., Ltd (‘‘Bridge Trust’’, a subsidiary of SPIC). The Target Group has received RMB100,000,000 perpetual debts with an
initial interest rate of 3.18% per annum and an initial base term 5 years.
On 29 March 2023, the Target Company entered into another perpetual debt investment contracts with Bridge Trust.
The Target Group has received RMB100,000,000 perpetual debts with an initial interest rate of 3.53% per annum and an
initial base term of 5 years.
25. BANK BORROWINGS
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Non-current
Secured long-term bank borrowings 470,090 442,345 2,555,120 3,103,364
Less: Current portion of long-term bank borrowings (18,700) (37,380) (35,129) (168,019)
451,390 404,965 2,519,991 2,935,345
Current
Secured short-term bank borrowings — — 60,434 —
Current portion of long-term bank borrowings 18,700 37,380 35,129 168,019
18,700 37,380 95,563 168,019
470,090 442,345 2,615,554 3,103,364
Notes:
(a) As at 31 December 2020, 2021 and 2022 and 31 March 2023, the carrying amounts of the Target Group’s
bank borrowings are denominated in RMB.
– IID-37 –
(b) The repayment terms of the long-term bank borrowings are analysed as follows:
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Within one year 18,700 37,380 35,129 168,019
Over five years 301,870 364,490 1,379,758 1,649,267
470,090 442,345 2,555,120 3,103,364
(c) The effective interest rates per annum of the Target Group’s bank borrowings are as follows:
As at
2020 2021 2022 2023
Short-term bank borrowings — — 3.6% —
Long-term bank borrowings (including current portion) 4% 4% 3% 3%
As at 31 December 2020, 2021 and 2022 and 31 March 2023, all of the bank borrowings of the Target Group
are in floating rates.
(d) As at 31 December 2020, 2021 and 2022 and 31 March 2023, the bank borrowings of the Target Group are
secured as follows:
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Secured by certain property, plant and equipment (note 15) — — 1,345,195 1,323,286
Secured by certain right-of-use assets (note 16) — — 7,977 7,918
Secured against the rights on certain accounts receivable
(note 20) 49,317 73,983 497,556 553,269
49,317 73,983 1,850,728 1,884,473
(e) As at 31 December 2020, 2021 and 2022 and 31 March 2023, the Target Group had available unutilised
banking facilities amounting to RMB39,910,000, RMB68,290,000, RMB3,714,082,000 and
(f) The fair values of short-term bank borrowings approximate their carrying amounts as the impact of
discounting is not significant.
The fair values of long-term bank borrowings at floating interest rates approximate their carrying amounts.

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Non-current
Long-term other borrowings from third parties — 187,889 186,460 412,857
Long-term other borrowings from related parties 200,000 284,175 184,084 83,951
200,000 472,064 370,544 496,808
Less:
Current portion of long-term other borrowings from third parties — — (100,893) (8,857)
Current portion of long-term other borrowings from related parties — (21,557) — —
200,000 450,507 269,651 487,951
Current
Short-term other borrowings from third parties — — 300,680 —
Short-term other borrowings from related parties — — 150,240 —
Current portion of long-term other borrowings from third parties — 21,557 100,893 8,857
— 21,557 551,813 8,857
200,000 472,064 821,464 496,808
– IID-38 –
As at 31 December 2020, 2021 and 2022 and 31 March 2023, the balance is unsecured, interest bearing from 0.69%
to 3.5% per annum. The fair values of the long-term other borrowings from third parties approximate their carrying amounts
as the impact of discounting is not significant.
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Total minimum lease payments:
Due within one year — 580 5,766 1,897
Due in the second to fifth years — 6,189 15,141 19,521
Due after the fifth year 12,444 30,431 45,114 40,337
Future finance changes on lease liabilities (3,958) (10,856) (14,507) (14,061)
Present value of lease liabilities 8,486 26,344 51,514 47,694
Present value of minimum lease payments:
Due within one year — 291 4,728 1,241
Due in the second to fifth years — 5,108 12,545 15,562
Due after the fifth year 8,486 20,945 34,241 30,891
Less: Portion due within one year included under
current liabilities — (291) (4,728) (1,241)
Portion due after one year included under non-current
liabilities 8,486 26,053 46,786 46,453
During the years ended 31 December 2020, 2021 and 2022 and the three months ended 31 March 2023, the total cash
outflows for the leases are RMB1,081,000, RMB13,556,000, RMB13,549,000 and RMB5,257,000 respectively.
28. OTHER NON-CURRENT LIABILITIES
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Provisions for poverty alleviation — 71,350 68,106 68,725
During the year ended 31 December 2021, two of the subsidiaries of the Target Group entered into an agreement in
respect of provision for poverty alleviation fund with the local poverty office, respectively. According to the agreement, the
subsidiary have to provide poverty alleviation fund to the defined poverty households for twenty years.
29. DEFERRED TAX ASSETS/(LIABILITIES)
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Deferred tax assets 1,128 5,772 6,626 7,513
Deferred tax liabilities — (2,953) (95,133) (93,695)
– IID-39 –
The movement during the years in the deferred tax liabilities/(assets) is as follows:
Deferred tax liabilities

Fair value
adjustments
arising from
acquisition of
Depreciation subsidiaries Total
RMB’000 RMB’000 RMB’000
At 1 January 2020, 31 December 2020 and 1 January 2021 — — —
Acquisition of subsidiaries — 122 122
Recognised in profit or loss 2,838 (7) 2,831
At 31 December 2021 and 1 January 2022 2,838 115 2,953
Recognised in profit or loss (134) (915) (1,049)
Recognised in profit or loss (34) (1,404) (1,438)
At 31 March 2023 2,670 91,025 93,695
Deferred tax assets

Fair value
adjustments
arising from
acquisition of
Depreciation subsidiaries Total
RMB’000 RMB’000 RMB’000
At 1 January 2020 — — —
Recognised in profit or loss — 1,128 1,128
Recognised in profit or loss 2,506 202 2,708
Recognised in profit or loss (60) 914 854
Recognised in profit or loss (24) 911 887
At 31 March 2023 2,422 5,091 7,513
30. ACCOUNTS AND BILL PAYABLES

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Account payables 54,859 90,333 175,419 176,600
Bill payables — — — 28,592
Total 54,859 90,333 175,419 205,192
Notes:
(a) The normal credit period for accounts payable generally ranges from 60 to 180 days. The ageing analysis of
the accounts payable based on invoice date is as follows:
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
1 to 6 months 896 10,994 93,347 69,349
7 to 12 months 12,858 1,159 203 85
Over 1 year 41,105 78,180 81,869 107,166
Total 54,859 90,333 175,419 176,600
(b) As at 31 March 2023, bills payable are bills of exchange with maturity period ranged from 1 to 2 months.
(c) The fair values of accounts and bills payables approximate their carrying amounts as the impact of
discounting is not significant. All accounts and bills payables are denominated in RMB.
– IID-40 –
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Salaries and staff welfare payable 367 469 2,580 6,767
Consideration payable for acquisition of subsidiaries — 5,320 165,780 96,589
Construction cost payable — 1,247 69,162 81,567
Other taxes payable — 4,273 — 1,918
Current portion of provisions for poverty alleviation (note 28) — 3,059 3,184 3,280
Total 10,157 31,912 314,607 200,446
32. RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES
Bank Other Lease

borrowings borrowings liabilities
RMB’000 RMB’000 RMB’000
As at 1 January 2020 498,790 — 7,350
Cash flows
— Drawdown of borrowings — 200,000 —
— Repayment of borrowings (28,700) — —
— Payments for lease liabilities — — (366)
— Interest paid — — (385)
Non-cash changes
— Finance costs — — 385
— Entering into new leases — — 1,502
As at 31 December 2020 and 1 January 2021 470,090 200,000 8,486
Cash flows
— Drawdown of borrowings 148,955 272,064 —
— Repayment of borrowings (176,700) — —
— Payments for lease liabilities — — (1,117)
— Interest paid — — (11,222)
Non-cash changes
— Finance costs — — 11,222
Cash flows
— Repayment of borrowings (37,380) (21,557) —
— Acquisitions of subsidiaries 1,699,236 — —
Non-cash changes
As at 31 December 2022 and 1 January 2023 2,615,554 821,464 51,514
Cash flows
— Repayment of borrowings (95,563) (551,813) —
Non-cash changes
As at 31 March 2023 3,103,364 496,808 47,694
– IID-41 –
Bank Other Lease

borrowings borrowings liabilities
RMB’000 RMB’000 RMB’000
(Unaudited)
Cash flows
— Repayment of borrowings — (288,113) —
Non-cash changes
As at 31 March 2022 542,408 212,448 19,250
33. COMMITMENTS
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
— property, plant and equipment — — 1,958,751 1,958,751
34. MATERIAL RELATED PARTY TRANSACTIONS
(a) Names and relationships with related parties
Related parties are those parties that have the ability to control, jointly control or exert significant influence
over the other party in holding power over the investee; exposure, or rights, to variable returns from its involvement
with the investee; and the ability to use its power over the investee to affect the amount of the investor’s returns.
Parties are also considered to be related if they are subject to common control or joint control.
The following companies are related parties of the Target Group that had material balances and/or material
transactions with the Target Group during the Relevant Periods.
Relationship with the
Name of related parties Target Group
SPIC Ultimate holding company
Datang Quanzhou New Energy Co., Ltd.# Subsidiary of an associate
(大唐全州新能源有限公司) (‘‘Datang Quanzhou’’)
Datang Yongzhou New Energy Co., Ltd.# Subsidiary of an associate
(大唐永州新能源有限公司) (‘‘Datang Yongzhou’’)
SPIC Digital Technology Co., Ltd.# Subsidiary of SPIC
(國家電投集團數字科技有限公司) (‘‘SPIC Digital Technology’’)
SPIC Finance Co., Ltd. # (國家電投集團財務有限公司) (‘‘SPIC Finance’’) Subsidiary of SPIC
Power Investment Jianneng Subsidiary of SPIC
State Power Investment Corporation Pingding Dongfang New Energy Power Subsidiary of SPIC
Generation Co., Ltd.#
(國家電投集團平定東方新能源發電有限公司)
State Power Investment Corporation Yuxian Dongfang New Energy Power Subsidiary of SPIC
Generation Co., Ltd.# (國家電投集團盂縣東方新能源發電有限公司)
State Power Investment Corporation Heshun Dongfang New Energy Power Subsidiary of SPIC
Generation Co., Ltd.# (國家電投集團和順東方新能源發電有限公司)
SPIC Fanzhi Jinfeng New Energy Power Generation Co., Ltd.# Subsidiary of SPIC
(國家電投集團繁峙金豐新能源發電有限公司)
Shanghai Energy Technology Development Co., Ltd.# Subsidiary of SPIC
(上海能源科技發展有限公司)
State Power Investment (Suzhou) Shared Services Co., Ltd.# Subsidiary of SPIC
(國電投(蘇州)共用服務有限公司)
State Power Investment Corporation Mengdong Energy Co., Ltd. # Subsidiary of SPIC
(國家電投集團蒙東能源有限公司)
State Power Investment Group Aluminum Power Investment Co., Ltd.# Subsidiary of SPIC
(國家電投集團鋁電投資有限公司)
State Power Investment Nanyang Thermal Power Co., Ltd. # Subsidiary of SPIC
(國電投南陽熱力有限責任公司)
Bridge Trust Subsidiary of SPIC
#
The English translation of the name of the company established in the PRC is for reference only. The
official name of this company is in Chinese.
– IID-42 –
(b) Significant related parties transactions
In addition to those disclosed elsewhere in the Historical Financial Information, the following is a summary of
the significant transactions carried out between the Target Group and its related parties in the ordinary course of
business during the Relevant Periods.
Three months ended
2020 2021 2022 2022 2023
(unaudited)
Ultimate holding company
Administration staff cost re-charge 2,797 2,985 3,254 848 —
Subsidiaries of an associate
Sales of electricity — — 9,500 — 2,860
Interest expenses paid — — 1,002 — 337
Interest income received — — 4,349 — 66
Companies controlled by SPIC
Administration staff cost re-charge — 948 — — —
Interest expense paid 401 8,358 12,039 1,062 3,458
Interest income received 9 176 757 88 72
(c) Cash and cash equivalents balances placed with related company
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
SPIC Finance 249,010 107,735 185,966 353,888
(d) Balances with related parties

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Other receivables
— an associate (note) — — 13,902 13,968
— subsidiaries of an associate (note) — — 375 3,407
— companies controlled by SPIC — — 400 750
— — 14,677 18,125
Trade payables
— ultimate holding company — 175 184 184
— companies controlled by SPIC 13,666 20,270 19,135 272
13,666 20,445 19,319 456
Other payables
— ultimate holding company (note) 5,111 5,416 2,300 796
— a subsidiary of an associate (note) — — 61,002 —
— companies controlled by SPIC (note) — 764 764 843
5,111 6,180 64,066 1,639
Other borrowings
SPIC Finance 200,000 100,224 100,133 —
Bridge Trust — 183,951 83,951 83,951
200,000 284,175 184,084 83,951
Note: The amounts due are non-trade nature, unsecured, interest-free, repayable on demand and denominated
in RMB.
(e) Financial assistance provided by a related party
As disclosed in note 24, the Target Company entered into the perpetual debt investment contracts with Bridge
Trust. For the year ended 31 December 2022 and the three months ended 31 March 2023, the Target Group received
RMB100,000,000 perpetual debts, respectively.
– IID-43 –
35. FINANCIAL RISK MANAGEMENT AND FAIR VALUE MEASUREMENTS
The Target Group’s activities expose it to a variety of financial risks: market risk (including interest rate risk), credit
risk and liquidity risk. The Target Group’s overall risk management programme focuses on the unpredictability of financial
markets and seeks to minimise potential adverse effects on the Target Group’s financial performance.
35.1 Categories of financial assets and liabilities
The carrying amounts presented in the statements of financial position relate to the following categories of
financial assets and financial liabilities:
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Financial assets
— Accounts receivables 49,860 174,644 653,556 735,065
— Deposits and other receivables 78,275 133,028 194,437 200,182
— Restricted deposits — 100 1,155 1,140
— Cash and cash equivalents 259,747 108,601 453,061 455,767
— Unlisted debt securities — — 10,000 10,000
387,882 416,373 1,312,209 1,402,154
Financial liabilities at amortised cost
— Accounts and bills payables 54,859 90,333 175,419 205,192
— Other payables 9,790 28,384 308,843 190,399
— Lease liabilities 8,486 26,344 51,514 47,694
— Bank borrowings 470,090 442,345 2,615,554 3,103,364
— Other borrowings 200,000 472,064 821,464 496,808
743,225 1,059,470 3,972,794 4,043,457
35.2 Interest rate risk
The Target Group is exposed to interest rate risk through the impact of rates changes on interest-bearing
borrowings which bear floating interest rates.
The Target Group monitors closely its interest rate exposure by maintaining an appropriate mix of fixed and
floating rate borrowings and considers hedging significant interest rate exposure should the need arise. The position
is regularly monitored and evaluated by reference of anticipated changes in market interest rate.
Based on the balance of its interest-bearing borrowings as at 31 December 2020, 2021 and 2022 and 31 March
2023, it is estimated that should there be a general increase/decrease of 50 basis points in lending rates of the
People’s Bank of China with all other variables being held constant, this would have the effect of decreasing/
increasing on profit for the years ended 31 December 2020, 2021 and 2022 and the three months ended 31 March
2023, and retained earnings as at 31 December 2020, 2021 and 2022 and 31 March 2023 by approximately
RMB2,513,000, RMB3,429,000, RMB10,971,000 and RMB13,501,000 respectively.
The changes in interests rates do not affect the Target Group’s other components of equity. The above
sensitivity analysis is prepared based on the assumption that the borrowings as at 31 December 2020, 2021 and 2022
and 31 March 2023 existed throughout the respective reporting periods.
35.3 Credit risk
Credit risk arises if a customer or other counterparty fails to meet its contractual obligations. The credit risk
of the Target Group mainly arises from accounts receivables, deposits and other receivables, restricted deposits and
cash and cash equivalents.
The Target Group has five types of assets that are subject to the ECL model:
. Accounts receivables
. Deposits and other receivables
. Restricted deposits
– IID-44 –
. Unlisted debt securities
. Cash and cash equivalents
(i) Accounts receivables
which therefore takes a relatively long time for settlement. The Target Group normally does not require
collaterals from trade debtors. In addition, the Target Group performs impairment assessment under ECL
model upon application of HKFRS 9 on accounts receivable individually. Ageing analysis of the Target
Group’s accounts receivable is disclosed in note 20 and management does not expect any losses from non-
performance by these counterparties.
(ii) Deposits and other receivables
The counterparties of the Target Group’s deposits and other receivables are mainly large state-owned
enterprises with good credit quality and subsidiaries of SPIC. Under ECL model upon application of HKFRS
9, management makes periodic collective assessment as well as individual assessment on the recoverability of
all loans and receivables, based on historical payment records, the length of the overdue period, the financial
strength of the debtors and whether there are any disputes with the relevant debtors. The Target Group’s
historical experience in collection of loans and receivables falls within the recorded allowances and the
management are of the opinion that adequate provision for uncollectible receivables has been made.
(iii) Unlisted debt securities, restricted deposits and cash and cash equivalents
At the end of each reporting period, the management have performed impairment assessment under 12-
month ECL model for unlisted debt securities, restricted deposits and cash and cash equivalents, and
concluded that there has been no significant increase in credit risk since initial recognition. Since the
counterparties are reputable banks, major financial institutions and SPIC Financial with management believes
are of high credit quality, the probability of defaults of the counterparties are insignificant and accordingly,
no allowance for credit losses is provided for these financial assets.
35.4 Liquidity risk
Cash flow forecasts are prepared by the Target Group’s management. The Target Group’s management
monitors rolling forecasts on the liquidity requirements to ensure the Target Group maintains sufficient liquidity
reserve to support sustainability and growth of the Target Group’s business. Currently, the Target Group finances its
working capital requirements through funds generated from operations and obtaining other borrowings.
The Target Company’s management monitors rolling forecasts of the Target Group’s liquidity reserve on the
basis of expected cash flows. The Target Group’s policy is to regularly monitor current and expected liquidity
requirements and its compliance with lending covenants, to ensure that it maintains sufficient reserves of cash and
adequate committed lines of funding from major financial institutions to meet its liquidity requirements in the short
and long term.
– IID-45 –
The table below analyses the Target Group’s financial liabilities into relevant maturity groupings based on the
remaining period at the end of the reporting period to the contractual maturity date. The amounts disclosed in the
table are the contractual undiscounted cash flows.
On demand Between Between Total Total

Effective or less than 1 and 2 and More than undiscounted carrying
interest rate 1 year 2 years 5 years 5 years cash flows amount
At 31 December 2020
Accounts and bills
payables — 13,754 41,105 — — 54,859 54,859
Other payables — 9,790 — — — 9,790 9,790
Lease liabilities 4.5% — — — 12,444 12,444 8,486
Bank borrowings 4.0% 18,700 37,380 112,140 301,870 470,090 470,090
Other borrowings 4.8% — — 200,000 — 200,000 200,000
42,244 78,485 312,140 314,314 747,183 743,225
At 31 December 2021
Accounts and bills
payables — 12,153 78,180 — — 90,333 90,333
Other payables — 28,384 — — — 28,384 28,384
Lease liabilities 4.5% 580 4,450 1,739 30,431 37,200 26,344
Bank borrowings 4.0% 37,380 28,559 11,916 364,490 442,345 442,345
Other borrowings 4.0%–4.8% 21,557 266,556 183,951 — 472,064 472,064
100,054 377,745 197,606 394,921 1,070,326 1,059,470
At 31 December 2022
Accounts and bills
payables — 93,550 81,869 — — 175,419 175,419
Other payables — 308,843 — — — 308,843 308,843
Bank borrowings 3.0%–3.6% 95,563 351,047 789,186 1,379,758 2,615,554 2,615,554
Other borrowings 3.18%–4.0% 551,813 183,191 86,460 — 821,464 821,464
1,055,535 618,017 888,878 1,424,872 3,987,302 3,972,794
At 31 March 2023
Accounts and bills
payables — 98,026 107,166 — — 205,192 205,192
Other payables — 190,399 — — — 190,399 190,399
Bank borrowings 3.0% 168,019 320,197 965,881 1,649,267 3,103,364 3,103,364
Other borrowings 3.18%–4.54% 8,857 76,011 101,940 310,000 496,808 496,808
467,198 514,177 1,076,539 1,999,604 4,057,518 4,043,457
All other current financial instruments are carried at amounts not materially different from their fair values as
at 31 December 2020, 2021 and 2022 and 31 March 2023.
– IID-46 –
2020 2021 2022 2023
Proportion of Proportion of Proportion of Proportion of
ownership interest ownership interest ownership interest ownership interest
Place of Held by Held by Held by Held by Held by Held by Held by Held by
establishment and Registered/paid up the Target subsidiaries the Target subsidiaries the Target subsidiaries the Target subsidiaries Type of Principal
APPENDIX IID
Name of subsidiaries operation capital Company Company Company Company legal entity activities
SPIC Shouyang Clean Energy Co., The PRC RMB128,000,000 — 100% — 100% — 100% — — Limited liability Generation and
Ltd. (國家電投集團壽陽清潔能源 company sale of
有限公司) electricity
Datong Yunzhou Longji Lvneng The PRC RMB39,400,000 — — 100% — 100% — 100% — Limited liability Generation and
Clean Energy Co., Ltd. company sale of
(‘‘Yunzhou Clean Energy’’) electricity
(note 37.1) (大同市雲州區隆基
綠能清潔能源有限公司)
Guangling Longxing Lvneng Clean The PRC RMB27,160,000 — — 100% — 100% — 100% — Limited liability Generation and
Energy Co., Ltd. (‘‘Guangling company sale of
Clean Energy’’) (note 37.2) (廣 electricity
靈縣隆興綠能清潔能源有限公司)
Diantou (Yuanping) Renewable The PRC RMB15,700,000 100% — 100% — 100% — 100% — Limited liability Provision of
Energy Co., Ltd (電投(原平)可 company biological gas
再生能源有限公司)
– IID-47 –
Power Investment Xiangyuan Clean The PRC RMB100,000,000 100% — 100% — 100% — 100% — Limited liability Generation and
Energy Co., Ltd. (電投襄垣清潔 company sale of
能源有限公司) electricity
Power Investment Nanzhao County The PRC RMB45,000,000 100% — 100% — 100% — 100% — Limited liability Generation and
Clean Energy Co., Ltd. (電投南 company sale of
召縣清潔能源有限責任公司) electricity
Power Investment Yongji New The PRC RMB36,000,000 100% — 100% — 100% — 100% — Limited liability Generation and
Energy Co., Ltd. (電投永濟新能 company sale of
源有限公司) electricity
State Power Investment Shanxi The PRC RMB210,000,000 100% — 100% — 100% — 100% — Limited liability Provision of
Energy Service Co., Ltd. company energy
(國電投山西能源服務有限 services
公司)
Diantou Changzi Clean Energy Co., The PRC RMB20,000,000 100% — 100% — 100% — 100% — Limited liability Generation and
Ltd (電投長子清潔能源有限公 company sale of
司) electricity
Power Investment Zhongyu The PRC RMB30,999,900 60% — 60% — 60% — 60% — Limited liability Generation and
(Huairen) Clean Energy Co., company sale of
Ltd. (電投中宇(懷仁)清潔能源有 electricity
限公司)
2020 2021 2022 2023
Proportion of Proportion of Proportion of Proportion of
ownership interest ownership interest ownership interest ownership interest
Place of Held by Held by Held by Held by Held by Held by Held by Held by
establishment and Registered/paid up the Target subsidiaries the Target subsidiaries the Target subsidiaries the Target subsidiaries Type of Principal
Name of subsidiaries operation capital Company Company Company Company legal entity activities
Power Investment Zhongyu (Youyu) The PRC RMB30,999,900 60% — 60% — 60% — 60% — Limited liability Generation and
Clean Energy Co., Ltd. (電投中 company sale of
APPENDIX IID
宇(右玉)清潔能源有限公司) electricity
Diantou Clean Energy (note 37.4) The PRC RMB223,602,651 — — — — 100% — 100% — Limited liability Investment
(山西電投清潔能源科技有限公 (note iii) company management
司)
Pianguan Intelligent Energy Wind The PRC RMB190,000,000 — 100% — 100% — 100% — 100% Limited liability Generation and
Power Co., Ltd. (偏關智慧能源 company sale of
風力發電有限公司) electricity
Shanxi Power Investment Bairui The PRC RMB5,000,000 — 100% — 100% — 100% — 100% Limited liability Investment
New Energy Co., Ltd. (山西電投 company management
百瑞新能源有限公司)
Shanxi Yulong Group Youyu The PRC RMB375,920,000 — — — 100% — 100% — 100% Limited liability Generation and
Niuxinbao Wind Power Co., Ltd company sale of
(‘‘Youyu Niuxinbao’’) (note electricity
37.3) (山西玉龍集團右玉牛心堡
– IID-48 –
Shandong Power Investment The PRC RMB30,000,000 100% — 100% — 100% — 100% — Limited liability Generation and
Dongbin Clean Energy Co., Ltd. company sale of
(山東電投東濱清潔能源有限公 electricity
司)
Notes:
(i) The English names of the subsidiaries represent the best effort by the management of the Target Group to translate their Chinese names, as these subsidiaries do not have official
English names.
(ii) The above table lists the subsidiaries of the Target Company which, in the opinion of the management of the Target Group, principally affected the results or assets of the Target
Group. To give details of other subsidiaries would, in the opinion of the management of the Target Group, result in particulars excessive length.
(iii) Diantou Clean Energy was an associate of the Target Group which accounted for using the equity method during the year ended 31 December 2021 (Note 17). On 25 November
2022, the Target Group acquired the remaining interests in Diantou Clean Energy, accordingly Diantou Clean Energy was classified as a subsidiary as at 31 December 2022. Details
of the acquisition are set out in note 37.4.
37. ACQUISITION OF SUBSIDIARIES
37.1 Acquisition of Yunzhou Clean Energy
On 1 January 2021, the Target Group acquired entire equity interest in Yunzhou Clean Energy from
independent third party in form of paying cash consideration. Yunzhou Clean Energy mainly engaged in generation
and sale of electricity. Acquisition related cost is insignificant.
Consideration
RMB’000
Total consideration — Cash 37,200
Assets acquired and liabilities recognised at the date of acquisition
Fair value of
net identifiable
assets and
liabilities
acquired
RMB’000
Deferred tax assets 283
Accounts and bills payables (30,181)
Deferred tax liabilities (122)
Total identifiable net assets at fair value 37,200
Net cash outflow on acquisition of Yunzhou Clean Energy
2021
RMB’000
Less: Cash and cash equivalent acquired (890)
Net outflow of cash and cash equivalents included in the cash flows from investing
activities 32,590
Impact of acquisition on the results of the Target Group
The revenue and profit included in the consolidated statement of profit or loss and other
comprehensive income for the year ended 31 December 2021 since the acquisition date contributed by
Yunzhou Clean Energy were RMB28,059,000 and RMB7,050,000, respectively.
37.2 Acquisition of Guangling Clean Energy
On 1 January 2021, the Target Group acquired entire equity interest in Guangling Clean Energy from
independent third party in form of paying cash consideration. Guangling Clean Energy mainly engaged in generation
and sale of electricity. Acquisition related cost is insignificant.
Consideration
RMB’000
– IID-49 –
Fair value of
net identifiable
assets and
liabilities
acquired
RMB’000
Net cash outflow on acquisition of Guangling Clean Energy
2021
RMB’000
Less: Cash and cash equivalent acquired (530)
activities 13,870
Guangling Clean Energy were RMB36,109,000 and RMB9,109,000, respectively.
37.3 Acquisition of Youyu Niuxinbao
On 26 October 2022, the Target Group acquired entire equity interest in Youyu Niuxinbao from independent
third party in form of paying cash consideration. Youyu Niuxinbao mainly engaged in generation and sale of
electricity. Acquisition related cost is insignificant.
Consideration
RMB’000
Fair value of
net identifiable
assets and
liabilities
acquired
RMB’000
Property, plant and equipment 1,527,000
Deferred tax assets —
Bank and other borrowings (954,210)
– IID-50 –
Net cash outflow on acquisition of Youyu Niuxinbao
2022
RMB’000
Less: Cash and cash equivalent acquired (68,713)
activities 540,567
comprehensive income for the year ended 31 December 2022 since the acquisition date contributed by Youyu
Niuxinbao were RMB55,434,000 and RMB27,487,000, respectively.
If the acquisition had occurred on 1 January 2022, the Target Group’s revenue and profit for the year
ended 31 December 2022 would have been RMB390,432,000 and RMB78,425,000, respectively. These pro
forma information are for illustrative purposes only and are not necessarily an indication of revenue and
results of operations of the Target Group that actually would have been achieved had the acquisition been
completed on 26 October 2022, nor are they intended to be a projection of future results.
37.4 Acquisition of Diantou Clean Energy
On 25 November 2022, the Target Group acquired 80% equity interest in Diantou Clean Energy (classified as
an associate before the acquisition) from independent third party in form of paying cash consideration. Diantou
Clean Energy mainly engaged in investment management. Acquisition related cost is insignificant.
Consideration
RMB’000
Cash 148,640
The fair value of the equity held before the acquisition date 37,160
Total consideration 185,800
Fair value of
net identifiable
assets and
liabilities
acquired
RMB’000
Bank and other borrowings (745,026)
Net cash outflow on acquisition of Diantou Clean Energy
2022
RMB’000
Less: Cash and cash equivalent acquired (30,747)
activities 117,893
– IID-51 –
Diantou Clean Energy were RMB11,153,000 and RMB2,977,000, respectively.
If the acquisition had occurred on 1 January 2022, the Target Group’s revenue and profit for the year
ended 31 December 2022 would have been RMB265,055,000 and RMB17,052,000, respectively. These pro
forma information are for illustrative purposes only and are not necessarily an indication of revenue and
results of operations of the Target Group that actually would have been achieved had the acquisition been
completed on 25 November 2022, nor are they intended to be a projection of future results.
Accordingly, the Target Group remeasured its previously held equity interest in Diantou Clean Energy
at its acquisition date fair value and recognised the resulting gain of RMB2,198,000 in the profit or loss in
accordance with HKFRS 3 (Revised) ‘‘Business Combinations’’. The fair value of this previously held equity
interest is then added to the sum of the consideration transferred in a business combination.
Upon the completion of the acquisition, the Target Group becomes a holding company of Diantou
Clean Energy.
38. STATEMENTS OF RESERVES OF THE TARGET COMPANY
Safety
production Statutory Retained
reserve reserve earnings Total
RMB’000 RMB’000 RMB’000 RMB’000
At 1 January 2020 — 67 603 670
Profit and total comprehensive income for the year — — 55 55
Transfer to statutory reserve — 5 (5) —
Safety production reserve 6 — — 6
At 31 December 2020 and 1 January 2021 6 72 653 731
Profit and total comprehensive income for the year — — 282 282
Transfer to statutory reserve — 28 (28) —
Dividend declared (note 14) — — (37) (37)
At 31 December 2021 and 1 January 2022 9 100 870 979
Profit and total comprehensive income for the year — — 47,798 47,798
Transfer to statutory reserve — 4,780 (4,780) —
Safety production reserve (1) — — (1)
Dividend declared (note 14) — — (9,053) (9,053)
At 31 December 2022 and 1 January 2023 8 4,880 34,835 39,723
Profit and total comprehensive income for the period — — 2,076 2,076
At 31 March 2023 27 4,880 36,911 41,818
39. CAPITAL MANAGEMENT
The Target Group’s capital management objectives are to ensure the Target Group’s ability to continue as a going
concern and to provide an adequate return to shareholders and benefits for other stakeholders and to maintain an optimal
capital structure to enhance shareholders’ value in the long term.
The Target Group actively and regularly reviews its capital structure and makes adjustments in light of changes in
economic conditions. As part of this review, the directors of the Target Group consider cost of capital. The Target Group
may adjust the amount of dividends paid to shareholders, return capital to shareholders, raise new debt financing or sell
assets to reduce debt.
40. EVENT AFTER THE REPORTING PERIODS
On 30 June 2023, the Target Company declared dividend of approximately RMB26,661,000.
III. SUBSEQUENT FINANCIAL STATEMENTS
No audited financial statements have been prepared by the Target Group in respect of any period
subsequent to 31 March 2023 and up to the date of this report.
– IID-52 –
APPENDIX IIE ACCOUNTANTS’ REPORT ON JIEYANG COMPANY
ACCOUNTANTS’ REPORT ON JIEYANG COMPANY
The following is the text of reports received from Baker Tilly Hong Kong Limited, Certified Public
Accountants, Hong Kong, for the purpose of incorporation in this circular.
ACCOUNTANTS’ REPORT ON HISTORICAL FINANCIAL INFORMATION OF JIEYANG

QIANZHAN WIND POWER CO., LTD.
Introduction
We report on the historical financial information of Jieyang Qianzhan Wind Power Co., Ltd.* (揭
陽前詹風電有限公司) (the ‘‘Target Company’’) set out on pages IIE-3 to IIE-41, which comprises the
statements of financial position as at 31 December 2020, 2021 and 2022 and 31 March 2023, and the
statements of profit or loss and other comprehensive income, the statements of changes in equity and the
statements of cash flows, for each of the years ended 31 December 2020, 2021 and 2022 and the three
months ended 31 March 2023 (the ‘‘Relevant Periods’’) and a summary of material accounting policy
information and other explanatory information (the ‘‘Historical Financial Information’’). The Historical
Financial Information set out on pages IIE-3 to IIE-41 forms an integral part of this report, which has
been prepared for inclusion in the circular of China Power International Development Limited (the
‘‘Company’’) dated 18 August 2023 (the ‘‘Circular’’) in connection with the proposed acquisition of
100% of equity interests of the Target Company by the Company.
The directors of Target Company (the ‘‘Directors’’) are responsible for the preparation of the
Historical Financial Information that gives a true and fair view in accordance with the basis of
preparation set out in note 2 to the Historical Financial Information, and for such internal control as the
Directors determine is necessary to enable the preparation of the Historical Financial Information that is
free from material misstatement, whether due to fraud or error.
Historical Financial Information of the Target Company is included, and such information is prepared
based on accounting policies materially consistent with those of the Company.
gives a true and fair view in accordance with the basis of preparation set out in note 2 to the Historical
– IIE-1 –
estimates made by the Directors, as well as evaluating the overall presentation of the Historical
our opinion
Opinion
report, a true and fair view of the financial position of the Target Company as at as at 31 December
2020, 2021 and 2022 and 31 March 2023 and of the financial performance and cash flows of the Target
Company for the Relevant Periods in accordance with the basis of preparation set out in note 2 to the
We have reviewed the stub period comparative financial information of the Target Company which
comprises the statements of profit or loss and other comprehensive income, the statements of changes in
equity and the statements of cash flows for the three months ended 31 March 2022 and other explanatory
information (the ‘‘Stub Period Comparative Financial Information’’). The Directors are responsible for
the preparation of the Stub Period Comparative Financial Information in accordance with the basis of
preparation and presentation set out in Note 2 to the Historical Financial Information. Our responsibility
is to express a conclusion on the Stub Period Comparative Financial Information based on our review.
We conducted our review in accordance with Hong Kong Standard on Review Engagements 2410
‘‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity’’ issued
by the HKICPA. A review consists of making inquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing and
consequently does not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Based on
our review, nothing has come to our attention that causes us to believe that the Stub Period Comparative
Financial Information, for the purposes of the accountants’ report, is not prepared, in all material
respects, in accordance with the basis of preparation and presentation set out in Note 2 to the Historical
Hong Kong Limited and the Companies (Winding up and Miscellaneous Provisions) Ordinance
Adjustments

Statements as defined on page IIE-3 have been made.
Dividends
dividends declared by the Target Company for the Relevant Periods.
Baker Tilly Hong Kong Limited

Wan Wing Ping
Practising certificate number P07471
– IIE-2 –
HISTORICAL FINANCIAL INFORMATION OF THE TARGET COMPANY
The financial statements of the Target Company for the Relevant Periods, on which the Historical
Financial Information is based, have been prepared in accordance with accounting policies which
conform with Hong Kong Financial Reporting Standards (‘‘HKFRSs’’) issued by the HKICPA
(‘‘Underlying Financial Statements’’) and were audited by us in accordance with Hong Kong Standards
on Auditing issued by the HKICPA.
The Historical Financial Information is presented in Renminbi (‘‘RMB’’) which is also the
functional currency of the Target Company and all values are rounded to the nearest thousands
(RMB’000), except when otherwise indicated.
I. HISTORICAL FINANCIAL INFORMATION OF THE TARGET COMPANY
STATEMENTS OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Revenue 4 — 124,335 848,743 287,153 262,575
Depreciation — — (314,307) (72,876) (78,607)
Staff costs 5 — (267) (16,327) (1,454) (6,210)
Repairs and maintenance — — (52) — (627)
Subcontracting costs — — (1,771) — (865)
Consumables — — (933) — (169)
Other gains and losses, net 6 — — 178 21 9
Other operating expenses 7 — (3,951) (66,325) (2,024) (15,658)
Operating profit 8 — 120,117 449,206 210,820 160,448
Finance income 9 — — 7,378 54 21,963
Finance costs 9 — (3,269) (164,227) (39,678) (52,248)
Profit before taxation — 116,848 292,357 171,196 130,163
Income tax expense 10 — — (17) — —
for the year/period — 116,848 292,340 171,196 130,163
– IIE-3 –
STATEMENTS OF FINANCIAL POSITION
As
2020 2021 2022 2023
ASSETS
Non-current assets
Payment for construction of power plants 16 — — 11 —
3,258,926 7,537,529 6,523,120 6,430,361
Current assets
Accounts receivable 17 — 113,458 519,598 636,885
Loan to a fellow subsidiary 19 — — 100,000 100,000
Amounts due from fellow subsidiaries 20 99 332 1,045,978 582,919
16,698 165,389 1,829,837 1,531,796
Total assets 3,275,624 7,702,918 8,352,957 7,962,157
EQUITY 22
Paid-in capital 386,000 1,227,385 1,401,537 1,401,537
Reserves — 116,848 409,188 59,351
Total equity 386,000 1,344,233 1,810,725 1,460,888
LIABILITIES
Bank borrowings 23 1,072,693 2,914,234 4,120,591 4,240,591
Other borrowings 24 1,128,020 876,518 — —
Borrowings from a related party 25 100,000 — 230,000 230,000
2,362,886 3,851,502 4,409,855 4,529,855
Current liabilities
Construction costs payable 27 201,353 1,809,449 1,356,567 1,317,731
Bank borrowings 23 — 124,554 765,581 164,197
Other borrowings 24 185,720 263,188 — —
Borrowings from a related party 25 45,000 300,000 — —
Tax payable — — 17 —
526,738 2,507,183 2,132,377 1,971,414
Net current liabilities (510,040) (2,341,794) (302,540) (439,618)
– IIE-4 –
STATEMENTS OF CHANGES IN EQUITY
Paid-in Other Statutory

capital reserve reserve Retained Total
(Note 22(a)) (Note 22(b)) (Note 22(c)) earnings equity
At 1 January 2020 216,000 — — — 216,000
for the year — — — — —
Capital injection 170,000 — — — 170,000
At 31 December 2020 and 1 January 2021 386,000 — — — 386,000
Profit and total comprehensive income for the
year — — — 116,848 116,848
Transfer to statutory reserve — — 11,685 (11,685) —
At 31 December 2021 and 1 January 2022 1,227,385 — 11,685 105,163 1,344,233
year — — — 292,340 292,340
Others — 50 — (50) —
At 31 December 2022 and 1 January 2023 1,401,537 50 40,914 368,224 1,810,725
period — — — 130,163 130,163
Dividends recognised as distribution (Note 13) — — — (480,000) (480,000)
Others — 2,400 — (2,400) —
At 31 March 2023 1,401,537 2,450 53,690 3,211 1,460,888
At 1 January 2022 (audited) 1,227,385 — 11,685 105,163 1,344,233
period — — — 171,196 171,196
At 31 March 2022 (unaudited) 1,227,385 — 28,804 259,240 1,515,429
– IIE-5 –
STATEMENTS OF CASH FLOWS
Three months ended

2020 2021 2022 2022 2023
(unaudited)
activities 29(a) (61,047) (523,382) 57,851 (58,579) 109,191
Payments for property, plant and equipment and
prepayments for construction of power plants (1,985,891) (2,244,843) (907,384) (204,584) (39,491)
Payments for right-of-use assets (1) — — — —
Proceeds from disposal of property, plant and
equipment — — 1,686 — —
Advance to fellow subsidiaries — — (85,000) — —
Repayment from fellow subsidiaries — — 226,272 — 481,384
Loan to a fellow subsidiary — — (100,000) — —
Interest received — — 2,951 54 1,225
Net cash (used in)/generated from investing
activities (1,985,892) (2,244,843) (861,475) (204,530) 443,118
Net proceeds from capital injection 170,000 841,385 174,152 — —
Drawdown of bank borrowings 29(b) 1,072,793 3,389,473 1,972,138 1,067,145 120,000
Drawdown of borrowings from a related party 29(b) 165,000 200,000 230,000 120,000 —
Drawdown of other borrowings 29(b) 1,050,553 1,057,037 — — —
Repayment of bank borrowings 29(b) (100) (1,423,378) (124,754) (14,347) (601,384)
Repayment of borrowings from a related party 29(b) (290,000) (45,000) (300,000) (200,000) —
Repayment of other borrowings 29(b) (107,081) (1,231,071) (1,139,706) (703,544) —
Payments for lease liabilities 29(b) (4,129) (4,128) (4,129) — —
Net cash generated from/(used in) financing
activities 2,057,036 2,784,318 807,701 269,254 (481,384)
Net increase in cash and cash equivalents 10,097 16,093 4,077 6,145 70,925
Cash and cash equivalents at beginning of
the year/period 5,490 15,587 31,680 31,680 35,757
Cash and cash equivalents at end of
the year/period 21 15,587 31,680 35,757 37,825 106,682
– IIE-6 –
II. NOTES TO THE HISTORICAL FINANCIAL INFORMATION OF THE TARGET COMPANY

The Target Company was incorporated in the People’s Republic of China (the ‘‘PRC’’) as a limited liability company on 21
March 2019. Its registered office is located at Room 101, Office Building between Goushu Village and Chiao Village, Qianzhan
Town, Huilai County, Guangdong Province, the PRC.
The Target Company is principally engaged in generation and sales of electricity in the PRC.
The Target Company is controlled by State Power Investment Group Guangdong Electric Power Corporation Limited (國家
電投集團廣東電力有限公司) (‘‘SPIC Guangdong’’), the subsidiary of State Power Investment Corporation Limited (國家電力投資
集團有限公司) (‘‘SPIC’’), a wholly state-owned enterprise established in the PRC. The Directors regard SPIC Guangdong and
SPIC as the immediate and ultimate holding company of the Target Company.
2. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION
The material accounting policy information applied in the preparation of the Historical Financial Information are set out
below. These policies have been consistently applied throughout the Relevant Periods.
The Historical Financial Information has been prepared in accordance with Hong Kong Financial Reporting
Standards (‘‘HKFRSs’’) which collective term includes all applicable individual Hong Kong Financial Reporting Standards,
Hong Kong Accounting Standards and Interpretations issued by the Hong Kong Institute of Certified Public Accountants
(the ‘‘HKICPA’’). In addition, the Historical Financial Information also complies with the applicable disclosure provisions
of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
The Stub Period Comparative Historical Financial Information has been prepared in accordance with the same basis
of preparation and presentation adopted in respect of the Historical Financial Information.
The Historical Financial Information has been prepared under the historical cost convention. The Historical Financial
Information is presented in Renminbi (‘‘RMB’’) and all values are rounded to the nearest thousand (RMB’000) except when
otherwise indicated.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, the Target Company’s current liabilities exceeded their
current assets by RMB510,040,000, RMB2,341,794,000, RMB302,540,000 and RMB439,618,000 respectively. Taking into
account the banking facilities available to the Target Company, the Directors have, at the time of approving the Historical
Financial Information, a reasonable expectation that the Target Company has adequate resources to meet its liabilities as
and when they fall due and to continue in operational existence for the foreseeable future. Thus the Target Company
continues to adopt the going concern basis of accounting in preparing its Historical Financial Information.
2.2 Changes in accounting policies and disclosures
For the purpose of preparing and presenting the Historical Financial Information for the Relevant Periods, the Target
Company has consistently adopted the HKFRSs issued by the HKICPA which are effective for the Target Company’s
financial period beginning on 1 January 2023.
2.3 Issued but not yet effective HKFRSs
The HKICPA has issued a number of new and revised HKFRSs. The Target Company has not early applied the
following new and amendments to HKFRSs that have been issued but are not yet effective:
Amendments to HKFRS 10 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 1
and HKAS 28
Amendments to HKAS 1 Classification of Liabilities as Current or Non-current and related amendments to Hong
Kong Interpretation 5 (the ‘‘2020 Amendments’’)2, 3
Amendments to HKAS 1 Non-current Liabilities with Covenants (the ‘‘2022 Amendments’’)2
1
2
Effective for annual periods beginning on or January 1, 2024
3
As a consequence of the 2022 Amendments, the effective date of the 2020 Amendments was deferred to
annual periods beginning on or after 1 January 2024. In addition, as a consequence of the 2020 Amendments
and 2022 Amendments, Hong Kong Interpretation 5 ‘‘Presentation of Financial Statements — Classification
by the Borrower of a Term Loan that Contains a Repayment on Demand Clause’’ was revised to align the
corresponding wording with no change in conclusion
– IIE-7 –
The Directors anticipate that the application of all new and amendments to HKFRSs will have no material impact on
the Historical Financial Information in the foreseeable future.
Items included in the Historical Financial Information of the Target Company are measured using the
currency of the primary economic environment in which the Target Company operates (the ‘‘functional currency’’).
The principal activities of the Target Company are mainly transacted in RMB and accordingly the Historical
Financial Information are presented in RMB, which is the Target Company’s functional and presentation currency.
denominated in foreign currencies are recognised in the statements of profit or loss and other comprehensive income.
statements of profit or loss and other comprehensive income within ‘‘finance costs’’. All other exchange gains and
losses are presented in the statements of profit or loss and other comprehensive income within ‘‘other gains and
losses, net’’.
assets, borrowing costs capitalised in accordance with the Target Company’s accounting policy. Depreciation of these assets
when it is probable that future economic benefits associated with the item will flow to the Target Company and the cost of
the item can be measured reliably. All other repairs and maintenance are charged to the statements of profit or loss and
other comprehensive income during the period in which they are incurred.
values.
than its estimated recoverable amount (Note 2.8). such impairment losses are recognised in the statements of profit or loss
and other comprehensive income.
relevant assets and are recognised in the statements of profit or loss and other comprehensive income.
2.6 Construction in progress and prepayments for construction of power plants
with the Target Company’s accounting policy. No provision for depreciation is made on construction in progress until such
with the policy as stated in Note 2.5 above.
construction of the Target Company’s power plants including payments for equipment and machineries pending delivery to
the relevant power plants for installation. Such prepayments are stated at cost less accumulated impairment losses, if any.
– IIE-8 –
2.7 Leases
application, the Target Company assesses whether a contract is or contains a lease based on the definition under
HKFRS 16 at inception, modification date or acquisition date, as appropriate. Such contract will not be reassessed
unless the terms and conditions of the contract are subsequently changed.
The Target Company as a lessee
Target Company allocates the consideration in the contract to each lease component on the basis of the relative
stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.
Company reasonably expects that the effects on the Historical Financial Information would not differ materially from
The Target Company applies the short-term lease recognition exemption to leases of offices and equipment
that have a lease term of 12 months or less from the commencement date and do not contain a purchase option. It
also applies the recognition exemption for lease of low-value assets. Lease payments on short-term leases and leases
of low-value assets are recognised as expense on a straight-line basis or another systematic basis over the lease term.
Refundable rental deposits paid are accounted under HKFRS 9 and initially measured at fair value.
Adjustments to fair value at initial recognition are considered as additional lease payments and included in the cost
of right-of-use assets.
Right-of-use assets
. any initial direct costs incurred by the Target Company; and
. an estimate of costs to be incurred by the Target Company in dismantling and removing an underlying
Right-of-use assets in which the Target Company is reasonably certain to obtain ownership of the underlying
the lease term.
When the Target Company obtains ownership of the underlying leased assets at the end of the lease term,
upon exercising purchase options, the carrying amount of the relevant right-of-use asset is transferred to property,
plant and equipment.
The Target Company presents right-of-use assets as a separate line item on the statements of financial
position.
– IIE-9 –
Lease liabilities
At the commencement date of a lease, the Target Company recognises and measures the lease liability at the
Target Company uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in
the lease is not readily determinable.
. amounts expected to be payable by the Target Company under residual value guarantees;
. the exercise price of a purchase option if the Target Company is reasonably certain to exercise the
option; and
. payments of penalties for terminating a lease, if the lease term reflects the Target Company exercising
an option to terminate the lease.
Variable lease payments that reflect changes in market rental rates are initially measured using the market
rental rates as at the commencement date. Variable lease payments that do not depend on an index or a rate are not
included in the measurement of lease liabilities and right-of-use assets, and are recognised as expense in the period
in which the event or condition that triggers the payment occurs.
The Target Company remeasures lease liabilities (and makes a corresponding adjustment to the related right-
of-use assets) whenever:
. the lease term has changed or there is a change in the assessment of exercise of a purchase option, in
which case the related lease liability is remeasured by discounting the revised lease payments using a
revised discount rate at the date of reassessment; and
The Target Company presents lease liabilities as a separate line item on the statements of financial position.
Lease modifications
The Target Company accounts for a lease modification as a separate lease if:
. the modification increases the scope of the lease by adding the right to use one or more underlying
assets; and
. the consideration for the leases increases by an amount commensurate with the stand-alone price for
the increase in scope and any appropriate adjustments to that stand-alone price to reflect the
For a lease modification that is not accounted for as a separate lease, the Target Company remeasures the
lease liability based on the lease term of the modified lease by discounting the revised lease payments using a
revised discount rate at the effective date of the modification.
The Target Company accounts for the remeasurement of lease liabilities by making corresponding adjustments
to the relevant right-of-use asset. When the modified contract contains a lease component and one or more additional
leases or non-lease components, the Target Company allocates the consideration in the modified contract to each
lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone
price of the non-lease components.
Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount.
– IIE-10 –
The recoverable amounts of property, plant and equipment and right-of-use assets are estimated individually. When it
is not possible to estimate the recoverable amount of an asset individually, the Target Company estimates the recoverable
amount of the cash-generating unit (‘‘CGU’’) to which the asset belongs.
In addition, the Target Company assesses whether there is indication that corporate assets may be impaired. If such
indication exists, corporate assets are also allocated to individual CGU, when a reasonable and consistent basis of allocation
can be identified, or otherwise they are allocated to the smallest Target Company of CGU for which a reasonable and
consistent allocation basis can be identified.
The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset (or a CGU) for which the
amount of the asset (or a CGU) is reduced to its recoverable amount. For corporate assets or portion of corporate assets
which cannot be allocated on a reasonable and consistent basis to a CGU, the Target Company compares the carrying
amount of a group of CGUs, including the carrying amounts of the corporate assets or portion of corporate assets allocated
to that group of CGUs, with the recoverable amount of the group of CGUs. In allocating the impairment loss, the
impairment loss is allocated first to reduce the carrying amount of any goodwill (if applicable) and then to the other assets
on a pro-rata basis based on the carrying amount of each asset in the unit or the group of CGUs. The carrying amount of an
asset is not reduced below the highest of its fair value less costs of disposal (if measurable), its value in use (if
determinable) and zero. The amount of the impairment loss that would otherwise have been allocated to the asset is
allocated pro rata to the other assets of the unit or the group of CGUs. An impairment loss is recognised immediately in
profit or loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or a CGU or a group of CGUs) is
increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the
carrying amount that would have been determined had no impairment loss been recognised for the asset (or a CGU or a
group of CGUs) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
flows; and
collecting contractual cash flows; and
that at the date of initial application of HKFRS 9/initial recognition of a financial asset the Target Company may
irrevocably elect to present subsequent changes in fair value of an equity investment in other comprehensive income
if that equity investment is neither held for trading nor contingent consideration recognised by an acquirer in a
business combination to which HKFRS 3 Business Combinations applies.
. on initial recognition it is a part of a portfolio of identified financial instruments that the Target
Company manages together and has a recent actual pattern of short-term profit-taking; or
– IIE-11 –
In addition, the Target Company may irrevocably designate a financial asset that are required to be measured
at the amortised cost or FVTOCI as measured at FVTPL if doing so eliminates or significantly reduces an accounting
mismatch.
Amortised cost and interest income
The Target Company performs impairment assessment under expected credit loss (‘‘ECL’’) model on financial
assets (including accounts receivable, note receivables, other receivables, deposits, amounts due from related parties,
debt instruments at FVTOCI and cash and cash equivalents) which are subject to impairment under HKFRS 9. The
amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition.
result from default events that are possible within 12 months after the reporting date. Assessment are done based on
the Target Company’s historical credit loss experience, adjusted for factors that are specific to the debtors, general
future conditions.
The Target Company always recognises lifetime ECL for accounts receivable other than accounts receivable
with significant financing components which is included in other non-current assets. The ECL on these assets are
assessed individually.
For accounts receivable with significant financing component and all other instruments, the Target Company
Target Company recognises lifetime ECL. The assessment of whether lifetime ECL should be recognised is based on
In assessing whether the credit risk has increased significantly since initial recognition, the Target Company
Company considers both quantitative and qualitative information that is reasonable and supportable, including
historical experience and forward-looking information that is available without undue cost or effort.
significantly:

obligations.
– IIE-12 –
Irrespective of the outcome of the above assessment, the Target Company presumes that the credit risk has
the Target Company has reasonable and supportable information that demonstrates otherwise.
Despite the foregoing, the Target Company assumes that the credit risk on a debt instrument has not increased
its contractual cash flow obligations. The Target Company considers a debt instrument to have low credit risk when
it has an internal or external credit rating of ‘‘investment grade’’ as per globally understood definitions.
The Target Company regularly monitors the effectiveness of the criteria used to identify whether there has
been a significant increase in credit risk and revises them as appropriate to ensure that the criteria are capable of
identifying significant increase in credit risk before the amount becomes past due.
For internal credit risk management, the Target Company considers an event of default occurs when
information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its
creditors, including the Target Company, in full (without taking into account any collaterals held by the Target
Company).
Irrespective of the above, the Target Company considers that default has occurred when a financial asset is
more than 90 days past due (except for clean energy power price premium) unless the Target Company has
reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate.
. it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation;
. the disappearance of an active market for that financial asset because of financial difficulties; or the
purchase or origination of a financial asset at a deep discount that reflects the incurred credit losses.
Write-off policy
The Target Company writes off a financial asset when there is information indicating that the counterparty is
in severe financial difficulty and there is no realistic prospect of recovery, for example, when the counterparty has
been placed under liquidation or has entered into bankruptcy proceedings. Financial assets written off may still be
subject to enforcement activities under the Target Company’s recovery procedures, taking into account legal advice
where appropriate. A write-off constitutes a derecognition event. Any subsequent recoveries are recognised in profit
or loss.
Generally the ECL is the difference between all contractual cash flows that are due to the Target Company in
accordance with the contract and the cash flows that the Target Company expects to receive, discounted at the
effective interest rate determined at initial recognition.
– IIE-13 –
. Nature of financial instruments (i.e. the Target Company’s other receivables are assessed as a separate
group. Amounts due from related parties are assessed for expected credit losses on an individual basis);
. Past-due status;
Except for debt instruments that are measured at FVTOCI, the Target Company recognises an impairment loss
or reversal in profit or loss for all financial instruments by adjusting their carrying amount, with the exception of
accounts receivable where the corresponding adjustment is recognised through a loss allowance account. For debt
instruments that are measured at FVTOCI, the loss allowance is recognised in other comprehensive income and
accumulated in the FVTOCI reserve without reducing the carrying amounts of these debt instruments. Such amount
represents the changes in the FVTOCI reserve in relation to accumulated loss allowance.
The Target Company derecognises a financial asset only when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of
the asset to another entity. If the Target Company neither transfers nor retains substantially all the risks and rewards
of ownership and continues to control the transferred asset, the Target Company recognises its retained interest in the
asset and an associated liability for amounts it may have to pay. If the Target Company retains substantially all the
risks and rewards of ownership of a transferred financial asset, the Target Company continues to recognise the
financial asset and also recognises a collateralised borrowing for the proceeds received.
On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying
Equity instruments
all of its liabilities. Equity instruments issued by the Target Company are recognised at the proceeds received, net of
direct issue costs.
All financial liabilities including bank borrowings, borrowings from a related party, other borrowings, lease
liabilities, construction costs payable and other payables and accrued charge are subsequently measured at amortised
cost using the effective interest method.
Financial assets and liabilities are offset and the net amount reported in the statements of financial position
when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net
basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent
on future events and must be enforceable in the normal course of business and in the event of default, insolvency or
bankruptcy of the Target Company or the counterparty.
– IIE-14 –
recognised in the statements of profit or loss and other comprehensive income over the period of the borrowings using the
effective interest method.
Borrowings are classified as current liabilities unless the Target Company has an unconditional right to defer
settlement of the liability for at least 12 months after the end of the reporting period.
The tax expense for the year comprises current and deferred income tax. Tax is recognised in the statements of profit
or loss and other comprehensive income, except to the extent that it relates to items recognised in other comprehensive
income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity,
respectively.
of reporting period in the places where the Target Company operate and generate taxable income. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is
subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to
the tax authorities.
In assessing any uncertainty over income tax treatments, the Target Company considers whether it is probable
that the relevant tax authority will accept the uncertain tax treatment used, or proposed to be use by individual group
entities in their income tax filings. If it is probable, the current and deferred taxes are determined consistently with
the tax treatment in the income tax filings. If it is not probable that the relevant taxation authority will accept an
uncertain tax treatment, the effect of each uncertainty is reflected by using either the most likely amount or the
expected value.
end of reporting period and are expected to apply when the related deferred income tax asset is realised or the
be available against which the temporary differences can be utilised.
For the purposes of measuring deferred tax for leasing transactions in which the Target Company recognises
the right-of-use assets and the related lease liabilities, the Target Company first determines whether the tax
deductions are attributable to the right-of-use assets or the lease liabilities. For leasing transactions in which the tax
deductions are attributable to the lease liabilities, the Target Company applies HKAS 12 Income Taxes requirements
– IIE-15 –
to the leasing transaction as a whole. Temporary differences relating to right-of-use assets and lease liabilities are
assessed on a net basis. Excess of depreciation on right-of-use assets over the lease payments for the principal
portion of lease liabilities results in net deductible temporary differences.
(c) Offsetting
2.14 Employee benefit
A defined contribution plan is a pension plan under which the Target Company pays fixed contributions into a
separate entity. The Target Company has no legal or constructive obligations to pay further contributions if the fund
periods.
For employees in the Mainland China, the Target Company contributes on a monthly basis to various defined
contribution plans organised by the relevant municipal and provincial governments in the PRC based on certain
the Target Company has no further constructive obligation for any post-retirement benefits beyond the contributions
All contributions to pension plans are fully and immediately vested and the Target Company had no unvested
The expected cost of bonus payments is recognised as a liability when the Target Company has a present legal
or constructive obligation as a result of services rendered by employees and a reliable estimate of the obligation can
be made. Liabilities of bonus plan are expected to be settled within 12 months and are measured at the amounts
2.15 Provisions
Provisions (including provisions for inundation compensation) are recognised when the Target Company has a
present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required
to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating
losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an
outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligations
using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to
the obligation. The increase in the provision due to passage of time is recognised as interest expense.
Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is
no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the
provision shall be reversed.
reasonable assurance that the grant or subsidy will be received and the Target Company will comply with all attached
conditions.
Government grants and subsidies relating to costs are deferred and recognised in the statements of profit or loss and
other comprehensive income over the period necessary to match them with the costs that they are intended to compensate.
projects are included in non-current liabilities as deferred income and are credited to the statements of profit or loss and
other comprehensive income on a straight-line basis over the expected lives of the related assets and projects.
– IIE-16 –
performance of the operating segments, have been identified as the Directors and certain senior management that make
strategic decisions.
The Target Company recognises revenue from sales of electricity to regional and provincial power grid companies
and provision of power generation. The revenue is recognised at a point in time generally when the power is transmitted to
the power grid.
The Target Company recognises revenue when (or as) a performance obligation is satisfied, i.e. when ‘‘control’’ of
the goods or services underlying the particular performance obligation is transferred to the customer.
satisfaction of the relevant performance obligation if one of the following criteria is met
. the customer simultaneously receives and consumes the benefits provided by the Target Company’s
performance as the Target Company performs;
. the Target Company’s performance creates and enhances an asset that the customer controls as the Target
Company performs; or
. the Target Company’s performance does not create an asset with alternative use to the Target Company and
the Target Company has an enforceable right to payment for performance completed to date.
In determining the transaction price, the Target Company adjusts the promised amount of consideration for
the effects of the time value of money if the timing of payments agreed (either explicitly or implicitly) provides the
customer or the Target Company with a significant benefit of financing the transfer of goods or services to the
one year, the Target Company applies the practical expedient of not adjusting the transaction price for any
significant financing component.
For contracts where the Target Company transferred the associated goods or services before payments from
customers in which the Target Company adjusts for the promised amount of consideration for significant financing
components, the Target Company applies a discount rate that would be reflected in a separate financing transaction
between the Target Company and the customer at contract inception, The Target Company recognises interest income
When another party is involved in providing goods or services to a customer, the Target Company determines
whether the nature of its promise is a performance obligation to provide the specified goods or services itself (i.e. the
Target Company is a principal) or to arrange for those goods or services to be provided by the other party (i.e. the
Target Company is an agent).
The Target Company is a principal if it controls the specified good or service before that good or service is
– IIE-17 –
The Target Company is an agent if its performance obligation is to arrange for the provision of the specified
good or service by another party. In this case, the Target Company does not control the specified good or service
provided by another party before that good or service is transferred to the customer. When the Target Company acts
as an agent, it recognises revenue in the amount of any fee or commission to which it expects to be entitled in
exchange for arranging for the specified goods or services to be provided by the other party.
Dividend distribution to the Target Company’s equity holders is recognised as a liability in the period in which the
dividends are approved by the Target Company’s shareholders or Directors as appropriate.
A party is considered to be related to the Target Company if:
(i) has control or joint control over the Target Company;
(ii) has a significant influence over the Target Company; or
(iii) is a member of the key management personnel of the Target Company or of a parent of the Target
Company.
or
(i) the entity and the Target Company are members of the same group;
(iii) the entity and the Target Company are joint ventures of the same third party;
(v) the entity is a post-employment benefit plan for the benefit of employees of either the Target Company
or an entity related to the Target Company; (If the Target Company is itself a plan) and the sponsoring
to the Target Company or to the parent of the Target Company.
Estimates and judgements used in preparing the Historical Financial Information are continually evaluated and are based on
historical experience and other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
The Target Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by
adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below
(i) Current income tax expenses
The Target Company is subject to income taxes in various locations within PRC. Judgement is required in
determining the provision for income taxes in each of these locations. There are transactions and calculations during the
ordinary course of business for which the ultimate tax determination is uncertain. Where the final tax outcome of these
matters is different from the amounts that were initially recorded, such differences will impact the current income tax and
deferred income tax provisions in the period in which such determination is made.
– IIE-18 –
(ii) Useful lives, residual values and depreciation charges of property, plant and equipment
The Target Company’s management determines the estimated useful lives, residual values and related depreciation
charges for the Target Company’s property, plant and equipment, other than construction in progress. This estimate is based
on the historical experience of the actual useful lives and residual values of property, plant and equipment of similar nature
and functions. It could change significantly as a result of technological advancement and innovations in the power industry.
Management will adjust the depreciation charge where useful lives or residual values vary with previously estimated, or it
will write-off or write down technically obsolete. Actual economic lives may differ from estimated useful lives and actual
residual values may differ from estimated residual values. Periodic review could result in a change in depreciable lives and
residual values and therefore depreciation charges in the future periods. As at 31 December 2020, 2021 and 2022 and 31
March 2023, the carrying amount of property, plant and equipment, other than construction in progress, were approximately
RMB76,175,000, RMB5,922,020,000, RMB6,047,308,000 and RMB5,969,658,000 respectively.
(iii) Allowance for ECLs on accounts and other receivables and deposits
The allowance for ECLs on the accounts and other receivables and deposits are estimated based on assumptions
about the risk of default and credit risk of respective receivables. The loss allowance amount is measured at the difference
between the asset’s carrying amount and the present value of estimated future cash flows with the consideration of expected
future credit loss of the respective receivables. Such assessment involves high degree of estimation and uncertainty. When
the actual future cash flows are less or more than expected, a material ECLs or material reversal of ECLs may arise,
accordingly.
ECL are measured as an allowance equal to 12-month ECL or lifetime ECL for respective receivables. An asset will
use lifetime ECL when its credit risk has increased significantly since initial recognition. HKFRS 9 does not define what
constitutes a significant increase in credit risk. In assessing whether the credit risk of an asset has significantly increased,
the Target Company takes into account quantitative and qualitative reasonable and supportable forward looking information
including available debtors’ historical data and existing and forecast market conditions.
A. Revenue
Revenue, representing the amounts received and receivable for electricity sold in the normal course of business net
of sales related taxes, recognised during the year/period is as follows:
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Sales of electricity to a regional and
provincial power grid company
(Note) — 124,335 848,743 287,153 262,575
At a point in time — 124,335 848,743 287,153 262,575
Note: Pursuant to the power purchase agreements entered into between the Target Company and the respective
regional and provincial power grid company, the Target Company’s sales of electricity were made to the
power grid company at the tariff rates agreed with the respective regional and provincial power grid company
as approved by the relevant government authorities in the PRC, and some of these tariff rates followed the
market-oriented price mechanism.
B. Segment information
For the years ended 31 December 2020, 2021 and 2022 and three months ended 31 March 2022 and 2023, the Target
Company’s operation was solely derived from sales of electricity in the PRC. For the purpose of resources allocation and
performance assessment, the chief operating decision maker (‘‘CODM’’) (i.e. Directors) reviewed the overall results and
financial position of the Target Company as a whole prepared based on same accounting policies set out in Note 2.
Accordingly, the Target Company have only one single operating and reportable segment and no further analysis of this
single segment is presented.
– IIE-19 –
Geographical information
No geographical segment information is presented as the Target Company’s revenue are all derived from the
PRC and the Target Company’s property, plant and equipment are all located in the PRC by physical location of
assets.
The Target Company’s major customer is a regional and provincial power grid company. For the years ended
31 December 2020, 2021 and 2022 and three months ended 31 March 2022 and 2023, the Target Company’s external
revenue amounted to approximately Nil, RMB124,335,000, RMB848,743,000, RMB287,153,000 and
RMB262,575,000, respectively, were generated from one major customer, which accounted for 100% of the Target
Company’s external revenue.
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Staff welfare 792 1,001 1,349 45 175
Pension costs — defined contribution plans 1,525 2,801 4,105 653 1,213
10,238 14,028 18,950 2,513 6,210
Less: amounts capitalised to property,
plant and equipment (10,238) (13,761) (2,623) (1,059) —
— 267 16,327 1,454 6,210
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Government grants — — 55 2 9
Gain on disposal of property, plant and equipment,
net — — 123 19 —
— — 178 21 9
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Insurance — — 21,995 — 7,170
Short-term lease expenses — — 892 181 181
Legal and professional fees — — 23,793 — 6,174
Administrative and selling related expenses — 3,938 14,270 1,177 1,387
Taxes and surcharges — — 2,105 175 520
Others — 13 3,270 491 226
— 3,951 66,325 2,024 15,658
– IIE-20 –
8. OPERATING PROFIT
Operating profit is stated after charging the following:
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Depreciation:
— Property, plant and equipment (note 14) 334 3,912 311,517 72,832 77,891
— Right-of-use assets (note 15) 2,862 2,862 2,861 115 716
3,196 6,774 314,378 72,947 78,607
plant and equipment (3,196) (6,774) (71) (71) —
— — 314,307 72,876 78,607
Short-term lease expenses
— Equipment 2,161 5,139 14,294 14,294 —
— Leasehold land — 365 1,166 362 204
2,161 5,504 15,460 14,656 204
plant and equipment (2,161) (5,504) (14,568) (14,475) (23)
— — 892 181 181
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Finance income
Interest income from bank deposits — — 7 3 —
Interest income from related parties — — 7,371 51 21,963
— — 7,378 54 21,963
Finance costs
Interest expenses on
— bank borrowings 22,513 71,398 148,340 31,669 49,086
— other borrowings 38,663 54,803 10,238 10,320 —
— borrowings from a related party 4,105 7,609 9,056 3,251 3,162
— lease liabilities 2,821 2,764 2,705 — —
68,102 136,574 170,339 45,240 52,248
Less: amounts capitalised in property, plant and
equipment (68,102) (133,305) (6,112) (5,562) —
— 3,269 164,227 39,678 52,248
For the years ended 31 December 2020, 2021 and 2022 and three months ended 31 March 2022 and 2023, the
weighted average interest rate on capitalised borrowings is approximately 4.17%, 3.98%, 4.16%, 4.16% and Nil per annum
respectively.
(a) Taxation in the statements of profit or loss and other comprehensive income represents:
Three months ended

2020 2021 2022 2022 2023
(unaudited)
PRC Enterprise Income Tax (‘‘EIT’’)
Charge for the year — — 17 — —
– IIE-21 –
(b) The income tax expense on the Target Company’s profit before taxation differs from the theoretical amount that
would arise using the income tax rate of the PRC as follows:
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Calculated at the PRC statutory tax rate
of 25% — 29,212 73,089 42,799 32,541
Effect on tax concession — (29,212) (73,072) (42,799) (32,541)
Income tax expense — — 17 — —
The provision for PRC current income tax is calculated based on the statutory tax rate of 25% on the estimated
assessable profits for the years ended 31 December 2020, 2021 and 2022 and three months ended 31 March 2022 and
2023.
Pursuant to Caishui [2012] No. 10 ‘‘Notice on the Execution of the Catalogue of Public Infrastructure Projects
Entitled for Preferential Tax Treatment’’, certain wind power projects of the Target Company, which were set up
after 1 January 2008, are entitled to a tax holiday of a three-year full exemption, followed by a three-year 50%
exemption of enterprise income tax, commencing from their first turnover-making year, the Target Company’s
offshore wind power project is in compliance with the preferential policy of three-year exemption and three-half
reduction of income tax from the year when the first income is obtained. In 2021, the Target Company’s offshore
wind power project obtained the first income and exempt from corporate income tax for years ended 31 December
2021 to 2023.
(c) No provision for deferred taxation has been made as there were no material temporary difference at the end of the
reporting period.
11. DIRECTORS’ EMOLUMENTS
Details of directors’ remuneration for the years ended 31 December 2020, 2021 and 2022 and three months ended 31 March
2022 and 2023 are as follows:
Basic salary,
housing
allowance, other Employer’s
allowances, contribution
bonuses and to pension
Fees benefits in kind plans Total
Note RMB’000 RMB’000 RMB’000 RMB’000
Mr. GAO Haixue (i) — — — —
Mr. GUO Junju (v) — — — —
Mr. LI Haoshi (v) — — — —
Mr. LI Tianhua — — — —
Mr. LIU Ming (ii) — 334 66 400
Mr. LIU Qiang (i) — — — —
Mr. QU Ruihang (v) — — — —
Mr. SHAO Bin (v) — 422 76 498
Mr. WANG Bin (iii) — 392 79 471
Mr. WANG Guanghui (iii) — 424 77 501
Mr. XIAO Yiyu (iii) — — — —
Mr. XU Chaogang (ii) — — — —
Mr. YIN Jun (v) — — — —
Mr. ZHANG Pengju (i) — — — —
Mr. ZHANG Yi (i) — — — —
Mr. ZHAO Chunyi (v) — — — —
Mr. ZHOU Jue (v) — — — —
— 1,572 298 1,870
– IIE-22 –
Basic salary,
housing
Mr. LIU Ming (ii) — 866 79 945
Mr. SHAO Bin (v) — 128 — 128
Mr. WANG Bin (iii) — 155 — 155
Mr. WANG Guanghui (iii) — 313 53 366
Mr. YIN Jun (v) — — — —
— 1,462 132 1,594
Basic salary,
housing
Mr. CHEN Hongjun (iv) — 252 71 323
Mr. LIU Ming (ii) — 749 94 843
Mr. SHAO Bin (v) — — — —
Mr. WANG Bin (iii) — — — —
Mr. WANG Guanghui (iii) — — — —
Mr. YIN Jun (v) — — — —
— 1,001 165 1,166
– IIE-23 –
Basic salary,
housing
Three months ended
31 March 2022 (unaudited)
Mr. CHEN Hongjun (iv) — — — —
Mr. LIU Ming (ii) — 64 22 86
Mr. SHAO Bin (v) — — — —
Mr. WANG Bin (iii) — — — —
Mr. WANG Guanghui (iii) — — — —
Mr. YIN Jun (v) — — — —
— 64 22 86
Basic salary,
housing
Mr. CHEN Hongjun (iv) — 62 24 86
Mr. LIU Ming (ii) — 50 25 75
— 112 49 161
Notes:
(i) Mr. GAO Haixue, Mr. LIU Qiang, Mr. ZHANG Pengju and ZHANG Yi resigned as directors with effect from 9
September 2020.
(ii) Mr. LIU Ming and Mr. XU Chaogang were appointed as directors with effect from 9 September 2020.
(iii) Mr. WANG Bin, Mr. WANG Guanghui and Mr. XIAO Yiyu were appointed as directors with effect from 9
September 2020 and resigned as directors with effect from 5 January 2022.
(iv) Mr. CHEN Hongjun was appointed as an director with effect from 5 January 2022.
(v) Mr. GUO Junju, Mr. LI Haoshi, Mr. QU Ruihang, Mr. SHAO Bin, Mr. YIN Jun, Mr. ZHAO Chunyi and Mr. ZHOU
Jue resigned as directors with effect from 5 January 2022.
There was no arrangement under which a director waived or agreed to waive any remuneration for the years ended 31
December 2020, 2021 and 2022 and three months ended 31 March 2022 and 2023.
For the years ended 31 December 2020, 2021 and 2022 and three months ended 31 March 2022 and 2023, no remuneration
was paid by the Target Company to any director as an inducement to join or upon joining the Target company or as compensation
for loss of office.
– IIE-24 –
12. FIVE HIGHEST PAID INDIVIDUALS
The five individuals whose emoluments were the highest in the Target Company for the years ended 31 December 2020,
2021 and 2022 and three months ended 31 March 2022 and 2023 included four, one, one, one and two Directors. The emoluments
payable to the remaining one, four, four, four and three individuals during for the years ended 31 December 2020, 2021 and 2022
and three months ended 31 March 2022 and 2023 as follows:
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Basic salaries, housing allowance, other allowances,
bonuses and benefits in kind 396 1,830 1,743 357 1,200
445 2,066 2,046 439 1,270
Number of individual
Three months ended
2020 2021 2022 2022 2023
(unaudited)
Zero to HK$1,000,000 (Equivalent
to RMB876,000) 1 4 4 4 3
13. DIVIDENDS AND EARNINGS PER SHARE
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Interim dividend recognised as distribution — — — — 480,000
No earnings per share information are presented as its inclusion, for the purpose of this report, is not meaningful.
Furniture and
Power fixtures, tools
generators and and other Transportation Construction
Buildings equipment equipment facilities in progress Total
Cost
At 1 January 2020 — — 613 679 737,055 738,347
Additions 75,025 — 577 — 2,260,017 2,335,619
At 31 December 2020 75,025 — 1,190 679 2,997,072 3,073,966
At 1 January 2020 — — 342 43 — 385
Depreciation charge for the year — — 224 110 — 334
At 31 December 2020 — — 566 153 — 719
Net book value
At 31 December 2020 75,025 — 624 526 2,997,072 3,073,247
– IIE-25 –
Furniture and
Power fixtures, tools
generators and and other Transportation Construction
Buildings equipment equipment facilities in progress Total
Cost
At 1 January 2021 75,025 — 1,190 679 2,997,072 3,073,966
Additions — — 978 39,486 3,955,823 3,996,287
Disposals — — (384) — — (384)
Transfer between categories 99,393 5,709,900 — — (5,809,293) —
At 31 December 2021 174,418 5,709,900 1,784 40,165 1,143,602 7,069,869
At 1 January 2021 — — 566 153 — 719
Depreciation charge for the year 2,079 — 197 1,636 — 3,912
Eliminated on disposals — — (384) — — (384)
At 31 December 2021 2,079 — 379 1,789 — 4,247
Net book value
At 31 December 2021 172,339 5,709,900 1,405 38,376 1,143,602 7,065,622
Cost
At 1 January 2022 174,418 5,709,900 1,784 40,165 1,143,602 7,069,869
Additions 2,193 — 2,323 — 456,158 460,674
Disposals — — — (15,204) (1,151,514) (1,166,718)
Transfer between categories — 446,264 — — (446,264) —
At 31 December 2022 176,611 6,156,164 4,107 24,961 1,982 6,363,825
At 1 January 2022 2,079 — 379 1,789 — 4,247
Depreciation charge for the year 5,415 302,833 659 2,610 — 311,517
Eliminated on disposals — — — (1,229) — (1,229)
At 31 December 2022 7,494 302,833 1,038 3,170 — 314,535
Net book value
At 31 December 2022 169,117 5,853,331 3,069 21,791 1,982 6,049,290
Cost
At 1 January 2023 176,611 6,156,164 4,107 24,961 1,982 6,363,825
Additions — — 241 — 425 666
At 31 March 2023 176,611 6,156,164 4,348 24,961 2,407 6,364,491
At 1 January 2023 7,494 302,833 1,038 3,170 — 314,535
Depreciation charge for the period 1,338 75,711 220 622 — 77,891
At 31 March 2023 8,832 378,544 1,258 3,792 — 392,426
Net book value
At 31 March 2023 167,779 5,777,620 3,090 21,169 2,407 5,972,065
Note:
values, as follows:

Furniture and fixtures, tools and other equipment 5 years
Transportation facilities 6–10 years
During the year ended 31 December 2022, the Target Company has disposed the transportation facilities and
construction in progress to its fellow subsidiaries. Sales proceeds from disposal of which is approximately
RMB1,165,874,000 and approximately RMB1,164,189,000 has been settled through amounts due from fellow subsidiaries.
Gain on disposal of property, plant and equipment resulting from which is approximately RMB123,000.
– IIE-26 –
Leasehold
lands Sea use rights Total
RMB’000 RMB’000 RMB’000
Cost
At 1 January 2020 22,990 — 22,990
Additions 1 64,846 64,847
At 31 December 2020 22,991 64,846 87,837
At 1 January 2020 115 — 115
Depreciation charge for the year 460 2,402 2,862
At 31 December 2020 575 2,402 2,977
Net book value
At 31 December 2020 22,416 62,444 84,860
Expenses relating to short-term leases and other leases with lease terms
end within 12 months 2,161
Total cash out flow for leases 6,291
Leasehold
RMB’000 RMB’000 RMB’000
Cost
At 1 January and 31 December 2021 22,991 64,846 87,837
At 1 January 2021 575 2,402 2,977
At 31 December 2021 1,035 4,804 5,839
Net book value
At 31 December 2021 21,956 60,042 81,998
Leasehold
RMB’000 RMB’000 RMB’000
Cost
At 1 January and 31 December 2022 22,991 64,846 87,837
At 1 January 2022 1,035 4,804 5,839
At 31 December 2022 1,495 7,205 8,700
Net book value
At 31 December 2022 21,496 57,641 79,137
– IIE-27 –
Leasehold
RMB’000 RMB’000 RMB’000
Cost
At 1 January and 31 March 2023 22,991 64,846 87,837
At 1 January 2023 1,495 7,205 8,700
Depreciation charge for the period 115 601 716
At 31 March 2023 1,610 7,806 9,416
Net book value
At 31 March 2023 21,381 57,040 78,421
For the period ended 31 March 2023
end within 12 months 204
Total cash out flow for leases 204
Note:
During the years ended 31 December 2020, 2021 and 2022 and three months ended 31 March 2023, the Target
Company leases leasehold lands and sea use rights for its operations. Lease contracts are typically made for fixed periods of
27 to 50 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and
conditions. In determining the lease term and assessing the length of the non-cancellable period, the Target Company
applies the definition of a contract and determines the period for which the contract is enforceable.
The Target Company regularly entered into short-term leases for leasehold land and equipment. As at 31 December
2020, 2021 and 2022 and 31 March 2023, the portfolio of short-term leases is similar to the portfolio of short-term leases to
which the short-term lease expense was recognised and disclosed in Note 8.
16. PREPAYMENT FOR CONSTRUCTION OF POWER PLANTS
construction of the Target Company’s power plants including payments for equipment and machinery pending delivery to the
relevant power plants for installation.
17. ACCOUNTS RECEIVABLE
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Accounts receivable from regional and provincial power grid company — 113,458 519,598 636,885
Notes:
(a) The ECL of accounts receivable has been assessed individually. The loss allowance of the accounts receivable as at
31 December 2020, 2021 and 2022 and 31 March 2023 was considered insignificant please refer to note 31.2(b) for
details of credit risk assessment.
(b) The ageing analysis of the accounts receivable based on invoice date is as follows:
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Unbilled — 58,215 458,367 581,752
1 to 3 months — 55,243 61,231 55,133
— 113,458 519,598 636,885
The accounts receivable that are neither past due nor impaired has been assessed by reference to the historical information
about counterparty default rates. The existing counterparty did not have significant default in the past.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, there are no accounts receivable balance are past due as at the
reporting date. Those amount have been assessed by reference to the historical information about counterparty default rates. The
existing counterparty did not have significant default in the past.
– IIE-28 –
As at 31 December 2020, 2021 and 2022 and 31 March 2023, accounts receivable from regional and provincial power grid
company include clean energy power price premium receivable of Nil, RMB58,215,000, RMB458,367,000 and RMB581,752,000
respectively, which is unbilled.
The clean energy power price premium, which is a component of the government-approved on-grid tariff for wind is
recognised as revenue from sales of electricity in the statements of profit or loss and other comprehensive income of the Target
Company for its wind power project.
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Prepayments 580 2,202 9,519 3,296
Value added tax receivable 100,819 406,073 513,294 481,509
Deposits paid 432 410 343 343
Others — 1,143 30 37
101,831 409,828 523,186 485,185
Less: Non-current portion show under non-current assets (100,819) (389,909) (394,682) (379,875)
1,012 19,919 128,504 105,310
19. LOAN TO A FELLOW SUBSIDIARY
The loan receivable from a fellow subsidiary, Jieyang Cihang Wind Power Co., Ltd., is unsecured, interest bearing at fixed
rate 3.70% per annum and repayable in May 2023.
20. AMOUNTS DUE FROM FELLOW SUBSIDIARIES
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
China Power Investment Qianzhan Gangdian Co., Ltd (note (i)) 99 98 340 5,145
State Nuclear Electric Power Planning Design & Research Institute
Co., Ltd. (note (i)) — 234 234 234
State Power Investment Group Xuwen Wind Power Co., Ltd. (note (i)) — — 7,002 7,002
Jieyang Cihang Wind Power Co., Ltd. (note (ii)) — — 274,264 277,762
Jieyang Jinghai Wind Power Co., Ltd. (note (ii)) — — 576,474 101,300
Jieyang Shenquan Wind Power Co., Ltd. (note (ii)) — — 187,664 191,476
99 332 1,045,978 582,919
Notes:
(i) The amounts due from fellow subsidiaries are unsecured, interest free and repayable on demand.
(ii) The amounts due from fellow subsidiaries are unsecured, interest bearing at fixed rate 3.70% per annum and
repayable on demand.
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Cash at banks and in hand (note (a)) 189 219 239 237
Deposits at SPIC Financial Company Limited (‘‘SPIC Financial’’)
(note (b)) 15,398 31,461 35,518 106,445
Notes:
(a) As at 31 December 2020, 2021 and 2022 and 31 March 2023, the Target Company’s cash at banks are interest
bearing at 0.30%, 0.30%, 0.25% and 0.25% per annum, respectively.
– IIE-29 –
(b) As at 31 December 2020, 2021 and 2022 and 31 March 2023, the Target Company’s deposits at SPIC Financial, a
related party of the Target Company are interest bearing at 0.35%, 0.35%, 0.35% and 0.35% per annum, respectively.
(c) As at 31 December 2020, 2021 and 2022 and 31 March 2023, the Target Company’s cash and cash equivalents are
denominated in RMB.
22. PAID-IN CAPITAL AND RESERVES
(a) Paid-in Capital
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
At 1 January 216,000 386,000 1,227,385 1,401,537
Capital injection 170,000 841,385 174,152 —
At 31 December/31 March 386,000 1,227,385 1,401,537 1,401,537
(b) Other reserve
Other reserve comprised the pursuant to relevant PRC regulations, power generation companies are required to set
aside an amount to a fund for future development and work safety which they transferred certain amounts from retained
earnings to capital reserve. The fund can then be used for future development and work safety of the power generation
operations, and is not available for distribution to shareholders. When qualifying development expenditure and
improvements of safety incurred, an equivalent amount is transferred from capital reserve to retained earnings.
(c) Statutory reserve
In accordance with the relevant laws and regulations of the PRC and the articles of association of the Target
Company, it is required to appropriate 10% of its net profit under PRC GAAP, after offsetting any prior years’ losses, to
the statutory surplus reserve. When the balance of such reserve reaches 50% of the Target Company’s share capital, any
further appropriation is optional.
The statutory surplus reserve can be used to offset prior years’ losses, if any, and may be converted into share capital
by issuing new shares to shareholders in proportion to their existing shareholding or by increasing the par value of the
shares currently held by them, provided that the remaining balance of the reserve after such an issue is not less than 25% of
share capital.
23. BANK BORROWINGS
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Non-current
Long-term bank borrowings, unsecured 1,072,693 2,914,234 4,886,172 4,404,788
Less: Current portion of long-term bank borrowings, unsecured — — (765,581) (164,197)
Non-current portion of long-term borrowings 1,072,693 2,914,234 4,120,591 4,240,591
Current
Short-term bank borrowing, unsecured — 124,554 — —
Current portion of long-term bank borrowings, unsecured — — 765,581 164,197
— 124,554 765,581 164,197
Total borrowings 1,072,693 3,038,788 4,886,172 4,404,788
Notes:
(a) The carrying amounts of the Target Company’s bank borrowings are denominated in RMB.
– IIE-30 –
(b) The repayment terms of the long-term bank borrowings are analysed as follows:
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Within one year — — 765,581 164,197
Between one and two years — 707,784 193,472 193,472
Between two and five years 1,072,693 1,157,200 882,522 882,522
Over five years — 1,049,250 3,044,597 3,164,597
1,072,693 2,914,234 4,886,172 4,404,788
(c) The effective interest rates per annum of the Target Company’s bank borrowings are as follows:
As at
2020 2021 2022 2023
Short-term bank borrowings — 3.40% — —
Long-term bank borrowings (including current portion) 4.02% 3.87% 3.41% 3.27%
As at 31 December 2020, 2021 and 2022 and 31 March 2023, the bank borrowings of the Target Company in fixed
and floating rates are as follows:
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Fixed-rate borrowings — 124,554 — —
Floating-rate borrowings 1,072,693 2,914,234 4,886,172 4,404,788
1,072,693 3,038,788 4,886,172 4,404,788
(d) As at 31 December 2020, 2021 and 2022 and 31 March 2023, the Target Company had available unutilised banking
facilities amounting to approximately RMB2,327,307,000, RMB11,761,212,000, RMB11,413,828,000 and
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Non-current
Long-term other borrowings from third parties 1,313,740 1,139,706 — —
Less: Current portion of long-term other borrowings from third parties (185,720) (263,188) — —
Non-current portion of long-term borrowings 1,128,020 876,518 — —
Current
Current portion of long-term other borrowings from third parties 185,720 263,188 — —
Total other borrowings 1,313,740 1,139,706 — —
Notes:
(a) The carrying amounts of the Target Company’s other borrowings are denominated in RMB.
(b) As at 31 December 2020, 2021 and 2022 and 31 March 2023, the balance are unsecured, interest bearing from 4.13%
to 4.28%, 4.13%, Nil and Nil per annum, respectively.
– IIE-31 –
25. BORROWINGS FROM A RELATED PARTY
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Non-current
Long-term borrowings from SPIC Financial 100,000 100,000 230,000 230,000
Less: Current portion of long-term borrowings from SPIC Financial — (100,000) — —
Non-current portion of long-term borrowings from SPIC Financial 100,000 — 230,000 230,000
Current
Short-term borrowings from SPIC Financial 45,000 200,000 — —
Current portion of long-term borrowings from SPIC Financial — 100,000 — —
45,000 300,000 — —
Total borrowings 145,000 300,000 230,000 230,000
Notes:
(a) The carrying amounts of the Target Company’s borrowings from a related party are denominated in RMB.
(b) As at 31 December 2020, 2021 and 2022 and 31 March 2023, the loans from SPIC Financial are unsecured, interest
bearing at fixed rate ranging from 4.00% to 5.50%, 3.95% to 5.50%, 5.50% and 5.50% per annum, respectively.
The repayment terms of the these borrowings are analysed as follows:
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Within one year 45,000 300,000 — —
Between one and two years 100,000 — — —
Between two and five years — — 230,000 230,000
145,000 300,000 230,000 230,000
(c) As at 31 December 2020, 2021 and 2022 and 31 March 2023, the Target Company available unutilised facilities
from SPIC Financial amounting to approximately Nil, Nil, RMB170,000,000 and RMB170,000,000, respectively.
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Lease liabilities payable:
Within one year 1,365 1,424 1,486 1,486
Over five years 54,407 52,645 50,807 50,807
63,538 62,174 60,750 60,750
Less: Amounts payable within 12 months shown
under current liabilities (1,365) (1,424) (1,486) (1,486)
Amounts payable after 12 months shown under non-current liabilities 62,173 60,750 59,264 59,264
As at 31 December 2020, 2021 and 2022 and 31 March 2023, except for short-term leases in which the Target Company
applied recognition exemption, the Target Company has recognised additions of right-of-use assets of approximately
RMB64,847,000, Nil, Nil and Nil and lease liabilities of RMB64,846,000, Nil, Nil and Nil, respectively.
– IIE-32 –
27. CONSTRUCTION COSTS PAYABLE
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Amounts due to third parties 184,841 1,700,488 1,265,314 1,220,019
Amounts due to fellow subsidiaries 16,512 108,961 91,253 97,712
201,353 1,809,449 1,356,567 1,317,731
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Salaries and staff welfare payable 273 602 979 1,702
Value added tax payable 106 725 436 520
Other payables and accrued operating expenses 107 105 145 154
Interest payable related to bank borrowings 1,186 3,396 4,013 4,301
Interest payable related to other borrowings 2,466 622 — —
Interest payable related to borrowings from SPIC Financial 223 344 270 387
Amounts due to fellow subsidiaries (note (i)) 58,073 2,774 2,883 936
Amount due to immediate holding company (note (i)) 30,866 — — —
Dividend payable to shareholders — — — 480,000
93,300 8,568 8,726 488,000
Note:
(i) The amounts due to fellow subsidiaries and immediate holding company are unsecured, interest-free and repayable
on demand.
29. NOTES TO THE STATEMENTS OF CASH FLOWS
(a) Reconciliation of profit before taxation to net cash (used in)/generated from operating activities

2020 2021 2022 2022 2023
(unaudited)
Adjustments for:
Finance income — — (7,378) (54) (21,963)
Finance costs — 3,269 164,227 39,678 52,248
Depreciation of property, plant and
equipment — — 311,446 72,761 77,891
Depreciation of right of use assets — — 2,861 115 716
Gain on disposal of property, plant and
equipment, net — — (123) (19) —
Operating cash flows before working capital
changes — 120,117 763,390 283,677 239,055
Increase in accounts receivable — (113,458) (406,140) (229,986) (117,287)
(Increase)/decrease in prepayments, deposits
and other receivables (95,271) (307,997) (113,358) 45,702 38,001
Decrease/(increase) in amounts due from
fellow subsidiaries 8,562 (233) (18,302) (109,056) 2,413
Increase/(decrease) in other payables and
accrued charges 87,348 (85,219) (26) (224) (1,131)
Cash generated from/(used in) operations 639 (386,790) 225,564 (9,887) 161,051
Interest paid (61,686) (136,592) (167,713) (48,692) (51,843)
PRC income tax paid — — — — (17)
activities (61,047) (523,382) 57,851 (58,579) 109,191
– IIE-33 –
(b) Analysis of changes in financing during the year/period

Bank and Borrowings
other from a related Lease
borrowings party liabilities
RMB’000 RMB’000 RMB’000
At 1 January 2020 370,268 270,000 —
New leases — — 64,846
Drawdown of bank borrowings 1,072,793 — —
Drawdown of other borrowings 1,050,553 — —
Repayment of bank borrowings (100) — —
Interest expense on lease liabilities (note 9) — — 2,821
Drawdown of other borrowings 1,057,037 — —
Repayment of bank borrowings (1,423,378) — —
At 31 December 2022 and1 January 2023 4,886,172 230,000 60,750
At 31 March 2023 4,404,788 230,000 60,750
(c) Major non-cash transactions
During the years ended 31 December 2020, the Target Company entered into new lease agreements for the sea use
rights for 27 years. Upon the lease commencement, the Target Company recognised right-of-use assets of approximately
RMB64,846,000 and lease liabilities of approximately RMB64,846,000 respectively.
30. COMMITMENTS
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Contracted but not provided for in respect of property, plant
and equipment 17,524,088 13,594,326 595,216 595,216
– IIE-34 –

As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Financial assets
Financial assets at amortised cost 16,118 147,023 1,701,706 1,426,866
Financial liabilities at amortised cost 2,889,518 6,357,960 6,541,779 6,500,749
The Target Company’s activities expose it to a variety of financial risks: interest rate risk, credit risk and liquidity
risk. The Target Company’s overall risk management programme focuses on the unpredictability of financial markets and
seeks to minimise potential adverse effects on the Target Company’s financial performance.
(a) Interest rate risk
The Target Company’s income and operating cash flows are substantially independent of changes in market
interest rates. The Target Company’s interest-bearing assets mainly include cash at banks, deposits at SPIC Financial,
loan to a fellow subsidiary and amounts due from fellow subsidiaries, details of which have been disclosed in Notes
19 to 21 to the Historical Financial Information. The Target Company’s exposure to changes in interest rates is
mainly attributable to its borrowings and lease liabilities, details of which have been disclosed in Notes 23 to 26 to
the Historical Financial Information. The Target Company has not used any specific interest rate swap contracts to
hedge its exposure to interest rate risk.
The Target Company’s cash flow interest rate risk is mainly concentrated on the fluctuation of People’s Bank
of China interest rate arising from the Target Company’s RMB denominated floating rate bank borrowings.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, if the interest rates on bank and other
borrowings had been 50 basis points higher/lower than the prevailing interest rates, with all other variables held
constant, post-tax profit for the year (net of interest capitalised) would have been approximately RMB8,949,000,
RMB15,202,000, RMB18,270,000, and RMB16,465,000 as at 31 December 2020, 2021 and 2022 and 31 March 2023
respectively, lower/higher mainly as a result of higher/lower interest expense on floating rate bank borrowings and
borrowings from related parties.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, if the interest rates on cash at banks and
deposits at SPIC Financial had been 50 basis points higher/lower than the prevailing interest rates, with all other
variables held constant, post-tax profit for the year would have been approximately RMB58,000, RMB119,000,
RMB134,000, and RMB400,000 as at 31 December 2020, 2021 and 2022 and 31 March 2023 respectively, higher/
lower mainly as a result of higher/lower interest income on floating rate cash at banks and deposits at SPIC
Financial.
Total interest income from financial assets that are measured at amortised cost is as follows:

2020 2021 2022 2021 2022
(unaudited)
Interest income:
Cash and cash equivalents — — 7 3 —
Amounts due from fellow subsidiaries — — 7,371 51 21,963
Total interest income — — 7,378 54 21,963
– IIE-35 –
Interest expense on financial liabilities not measured at FVTPL:

2020 2021 2022 2021 2022
(unaudited)
Interest expense on financial
liabilities at amortised cost — 3,269 164,227 39,678 52,248
The Target Company’s credit risk primarily arises from accounts receivable (Note 17), deposits and other
receivables (Note 18), loan to a fellow subsidiary (Note 19), amounts due from fellow subsidiaries (Note 20) and
cash and cash equivalents (Note 21). The Target Company does not hold any collateral or other credit enhancements
to cover its credit risks associated with its financial assets.
Accounts receivable arising from contracts with customers
The Target Company is exposed to significant concentration of credit risk in terms of electricity sales
as a majority of the Target Company’s sales of electricity were made to regional and provincial power grid
company. The Target Company normally grants credit terms ranged from 30 to 90 days to the power grid
company except for the clean energy power price premium. The collection of such clean energy power price
premium is subject to the allocation of funds by relevant government authorities to local grid company, which
therefore takes a relatively long time for settlement. The Target Company only accepts bills issued or
guaranteed by reputable PRC banks if accounts receivable are settled by bills and therefore the management
of the Target Company considers the credit risk arising from the endorsed or discounted bills is insignificant.
The Target Company normally does not require collaterals from trade debtor. In addition, the Target Company
individually. Ageing analysis of the Target Company’s accounts receivable is disclosed in Note 18 and
management does not expect any losses from non-performance by the counterparty.
Deposits and other receivables, loan to a fellow subsidiary, amounts due from fellow subsidiaries
The counterparties of the Target Company’s deposits and other receivables, loan to a fellow subsidiary,
amounts due from fellow subsidiaries are mainly large state-owned enterprises with good credit quality and
subsidiaries of SPIC. Under ECL model upon application of HKFRS 9, management makes periodic collective
assessment as well as individual assessment on the recoverability of all loans and receivables, based on
historical payment records, the length of the overdue period, the financial strength of the debtors and whether
there are any disputes with the relevant debtors. Management does not expect any losses from non-
performance by these counterparties.
Substantially all of the Target Company’s cash and deposits are held in major financial institutions and
SPIC Financial, which management believes are of high credit quality. Therefore, the Target Company
performs impairment assessment under 12m ECL model upon application of HKFRS 9 on cash and cash
equivalents on collective basis. Management does not expect any losses from non-performance by these
counterparties.
– IIE-36 –
The tables below detail the credit risk exposures of the Target Company’s financial assets, including
accounts receivable, deposits and other receivables, loan to a fellow subsidiary, amounts due from fellow
subsidiaries and cash and cash equivalents, which are subject to ECL assessment:
Gross carrying amount

External Internal
credit credit 12m or lifetime As at
Note rating rating ECL As at 31 December 31 March
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Financial assets at amortised cost:
Accounts receivable 17 A1 Note (i) Lifetime ECL — 113,458 519,598 636,885
(not credit
impaired)
Deposits and other 18 N/A Note (ii) 12m ECL 432 1,553 373 380
receivable
Loan to a fellow 19 N/A Note (ii) 12m ECL — — 100,000 100,000
subsidiary
Amounts due from fellow 20 N/A Note (ii) 12m ECL 99 332 1,045,978 582,919
subsidiaries
Cash and cash equivalents 21 A1 Note (iii) 12m ECL 15,587 31,680 35,757 106,682
Notes:
(i) Accounts receivable:
As a majority of the Target Company’s sales of electricity were made to regional and provincial
power grid company, the Target Company has applied the simplified approach in HKFRS 9 to
measure the loss allowance at lifetime ECL individually for accounts receivable. At the end of
the reporting period, the Directors have performed impairment assessment for accounts
receivable based on external credit rating and corresponding default rate issued by international
credit-rating agencies, and concluded that the credit losses of the accounts receivable as at 31
December 2020, 2021 and 2022 and 31 March 2023 was insignificant and therefore no
allowance is provided for accounts receivable.
(ii) Deposits and other receivables, loan to a fellow subsidiary and amounts due from fellow
subsidiaries:
For the purposes of internal credit risk management, the Target Company uses past due
information to assess whether credit risk has increased significantly since initial recognition.
The Target Company’s internal credit risk grading assessment comprises the following
categories:
Internal credit
rating Description Deposits and other receivables
A The counterparties can honor the terms 12m ECL
of the contracts. There is no reason
to doubt their ability to fulfill the
payment on a timely basis.
B The counterparties frequently repay 12m ECL
after due dates but usually settle
after due date.
C The counterparties cannot repay in full Lifetime ECL (not credit-
and there has been a significant impaired)
increase in credit risk since initial
recognition.
D There is evidence indicating the asset is Lifetime ECL (credit-impaired)
credit-impaired.
The grouping is regularly reviewed by management to ensure relevant information about

specific debtors is updated.
– IIE-37 –
(iii) Cash and cash equivalents:
12m ECL model for cash and cash equivalents, and concluded that there has been no significant
increase in credit risk since initial recognition. Since the counterparties are in major financial
institutions with high credit ratings assigned by international credit-rating agencies, the
probability of defaults of the counterparties are insignificant and accordingly, no allowance for
credit losses is provided for these financial assets.
(c) Liquidity risk
The Target Company primary cash requirements have been for construction of power plants, additions of and
expenses. The Target Company finances its working capital requirements through a combination of internal
resources, borrowings from a related party, and short-term and long-term bank and other borrowings.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, the Target Company’s current liabilities
exceeded their current assets by RMB510,040,000, RMB2,341,794,000, RMB302,540,000 and RMB439,618,000
respectively. Management monitors regularly the Target Company’s current and expected liquidity requirements to
ensure it maintains sufficient cash and cash equivalents and has available funding through adequate amount of
facilities to meet its working capital requirements. As at 31 December 2020, 2021 and 2022 and 31 March 2023, the
Target Company had available unutilised facilities in writing from banks and from a related party amounted to
approximately RMB2,327,307,000, RMB11,761,212,000, RMB11,583,828,000 and RMB8,665,212,000 respectively
as disclosed in Notes 23(d) and 25(c) to the Historical Financial Information respectively, and will refinance and/or
restructure certain short-term loans into long-term loans or consider alternative sources of financing, where
applicable.
The table below analyses the Target Company’s financial liabilities into relevant maturity Target Company
based on the remaining period at the end of reporting period to the contractual maturity date. The amounts disclosed
in the table are the contractual undiscounted cash outflows by maturity and its carrying amounts.
Total
contractual
Within one Between one Between two undiscounted Total Carrying
year and two years and five years Over five years cash outflows amount
At 31 December 2020
Construction cost payable 201,353 — — — 201,353 201,353
Bank borrowings 43,085 43,085 1,082,836 — 1,169,006 1,072,693
Other borrowings 286,167 771,528 379,498 — 1,437,193 1,313,740
Borrowings from a related party 51,780 110,419 — — 162,199 145,000
679,707 929,160 1,474,719 86,697 3,170,283 2,889,518
At 31 December 2021
Construction cost payable 1,809,449 — — — 1,809,449 1,809,449
Bank borrowings 238,560 801,141 1,362,854 1,103,466 3,506,021 3,038,788
Other borrowings 1,047,490 293,545 — — 1,341,035 1,139,706
Borrowings from a related party 312,754 — — — 312,754 300,000
3,420,224 1,098,814 1,375,239 1,186,034 7,080,311 6,357,960
– IIE-38 –
Total
contractual
Within one Between one Between two undiscounted Total Carrying
year and two years and five years Over five years cash outflows amount
At 31 December 2022
Bank borrowings 911,002 329,189 1,150,948 3,524,562 5,915,701 4,886,172
Borrowings from a related party 12,650 12,650 241,932 — 267,232 230,000
2,292,637 345,967 1,405,265 3,603,002 7,646,871 6,541,779
At 31 March 2023
Bank borrowings 319,895 331,254 1,233,571 3,658,304 5,543,024 4,404,788
Borrowings from a related party 12,650 12,650 238,117 — 263,417 230,000
22,141,884 348,032 1,484,073 3,736,744 7,710,733 6,500,749
The Target Company’s objectives when managing capital are to safeguard the Target Company’s ability to continue
as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the
cost of capital.
The Target Company manages the capital structure and makes adjustments to it in light of changes in economic
condition. In order to maintain or adjust the capital structure, the Target Company may adjust the dividend payments to
borrowings.
The Target Company monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by
as shown in the statements of financial position) less cash and cash equivalents. Total capital is calculated as total equity,
as shown in the statements of financial position, plus net debt.
The table below analyses the Target Company’s capital structure.
As at
2020 2021 2022 2023
RMB’000 RMB’000 RMB’000 RMB’000
Bank borrowings (Note 23) 1,072,693 3,038,788 4,886,172 4,404,788
Other borrowings (Note 24) 1,313,740 1,139,706 — —
Borrowings from a related party (Note 25) 145,000 300,000 230,000 230,000
Lease liabilities (Note 26) 63,538 62,174 60,750 60,750
Less: Cash and cash equivalents (Note 21) (15,587) (31,680) (35,757) (106,683)
Net debt 2,579,384 4,508,988 5,141,165 4,588,855
Total equity 386,000 1,344,233 1,810,725 1,460,888
Total capital 2,965,384 5,853,221 6,951,890 6,049,743
The Directors consider that the carrying amounts of financial assets and financial liabilities recorded at amortised
cost in the Historical Financial Information approximate to their fair values as at 31 December 2020, 2021 and 2022 and 31
March 2023.
– IIE-39 –
The Target Company is wholly owned subsidiary of SPIC, SPIC is controlled by the PRC government which also owns a
defined as related parties of the Target Company. On that basis, related parties include SPIC, its subsidiaries, joint ventures and
associates (other than the Target Company), other government-related entities and their subsidiaries, other entities and corporations
in which the Target Company is able to control or exercise significant influence and key management personnel of the Target
in the ordinary course of the Target Company’s business in addition to the related party information shown elsewhere in the
(a) Income
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Interest income from
— SPIC Financial (i) — — 178 51 51
— fellow subsidiaries (ii) — — 7,193 — 21,912
Sales proceeds from disposal of property,

plant and equipment from fellow
subsidiaries (iii) — — 1,165,874 61,967 —
Notes:
(i) For the years ended 31 December 2020, 2021 and 2022 and for the three months ended 31 March 2022 and
2023, the interest income from SPIC Financial was charged at interest rates at 0.35% per annum.
(ii) For the year ended 31 December 2022 and for the three months ended 31 March 2023, the interest income
from fellow subsidiaries were charged at fixed 3.70% per annum.
(iii) These income were charged in accordance with the terms of the relevant agreements.
(b) Expenses
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Construction costs and other services fees to: (i)
— Immediate holding company 30,376 3,573 23,662 — 6,174
— fellow subsidiaries 335,136 3,965,911 100,198 — 263
Interest expenses to:

— SPIC Financial (ii) 4,105 7,609 9,056 3,251 3,162
Notes:
(i) Construction costs and other services fees were mainly related to construction services, consultancy services
and other services which were charged based on mutually agreed prices.
(ii) For the years ended 31 December 2020, 2021 and 2022 and for the three months ended 31 March 2022 and
2023, the interest expenses to SPIC Financial are unsecured, interest bearing at fixed rate ranging from 4.00%
to 5.50%, 3.95% to 5.50%, 5.50%, 5.50% and 5.50% per annum, respectively.
– IIE-40 –
(c) Period-end balances with related parties
Year-end balances with related parties are disclosed in Notes 19, 20, 21, 25, 27 and 28.
(d) Key management personnel compensation
Three months ended

2020 2021 2022 2022 2023
(unaudited)
Fees, basic salaries, housing allowance, other
allowances and benefits in kind,
discretionary bonuses and other benefits 1,928 3,334 2,836 766 2,291
2,276 3,814 3,319 895 2,432
33. EVENTS AFTER THE REPORTING PERIOD
No significant event requiring disclosure has been taken place subsequent to 31 March 2023.
III. SUBSEQUENT FINANCIAL INFORMATION
No audited financial statements have been prepared by the Target Company in respect of any
period subsequent to 31 March 2023.
– IIE-41 –
APPENDIX III MANAGEMENT DISCUSSION AND ANALYSIS OF THE TARGET COMPANIES
MANAGEMENT DISCUSSION AND ANALYSIS OF THE TARGET COMPANIES

Set out below is the management discussion and analysis on the Target Companies for each of the
three years ended 31 December 2020, 2021 and 2022 and the three months ended 31 March 2023 (the
‘‘Reporting Period’’). The following financial information is based on the accountants’ report of the
Target Companies as set out in Appendices IIA-IIE to this circular.
I. MANAGEMENT DISCUSSION AND ANALYSIS OF BEIJING COMPANY
Set out below is the management discussion and analysis on Beijing Company for the Reporting
Period. The discussion and analysis relate to the consolidated results and financial position of Beijing
Company. The following discussion and analysis should be read in conjunction with the accountants’
report set out in Appendix IIA to this circular.
A. BUSINESS OVERVIEW
Beijing Company was incorporated in the PRC on 16 December 2016 as a limited liability
company and is principally engaged in generation and sale of electricity in the PRC. For further details
of Beijing Company, please refer to the section headed ‘‘Information of the Target Companies’’ of the
Letter from the Board in this circular.
B. FINANCIAL OVERVIEW
Revenue
Beijing Company recorded revenue of RMB2,690.8 million, RMB4,007.0 million,
RMB4,193.1 million, RMB962.7 million and RMB1,060.7 million for the years ended 31
December 2020, 2021 and 2022 and the three months ended 31 March 2022 and 2023, respectively.
During the Reporting Period, Beijing Company generated revenue from two segments, being (i)
wind power electricity, and (ii) photovoltaic power electricity.
. With respect to the wind power electricity segment, Beijing Company recorded revenue
of RMB1,518.4 million, RMB2,283.9 million, RMB2,315.3 million and RMB603.9
million for the years ended 31 December 2020, 2021 and 2022 and the three months
ended 31 March 2023, respectively; and
. With respect to the photovoltaic power electricity segment, Beijing Company recorded
revenue of RMB1,172.4 million, RMB1,723.1 million, RMB1,877.8 million and
RMB456.8 million for the years ended 31 December 2020, 2021 and 2022 and the three
months ended 31 March 2023, respectively.
The continuous increase in revenue of Beijing Company during the Reporting Period was
primarily due to the increase of revenue from the sale of electricity in both wind power electricity
and photovoltaic power electricity from the year ended 31 December 2021.
Segment Information
During the Reporting Period, Beijing Company generated revenue from two segments, being
the sale of (i) wind power electricity, and (ii) photovoltaic power electricity. Beijing Company’s
sales of electricity were made to provincial power grid companies at the tariff rates agreed with the
relevant regional and provincial power grid companies as approved by the relevant government
authorities in the PRC, and some of these tariff rates followed the market-oriented price
mechanism.
Operating Expenses
The operating expenses of Beijing Company primarily comprised depreciation, staff costs,
repairs and maintenance, consumables, and other operating expenses.
. Beijing Company’s operating expenses increased by RMB724.5 million from
RMB1,426.5 million for the year ended 31 December 2020 to RMB2,151.0 million for
the year ended 31 December 2021, representing an increase of 50.8%. The increase was
mainly due to (i) the increase in depreciation expenses of RMB379.2 million and (ii)
the increase in staff costs of RMB57.0 million.
– III-1 –
. Beijing Company’s operating expenses increased by RMB251.5 million from

approximately RMB2,151.0 million for the year ended 31 December 2021 to
RMB2,402.5 million for the year ended 31 December 2022, representing an increase
of11.7%. The increase was mainly due to (i) the increase in depreciation expenses of
RMB204.8 million and (ii) the increase in staff costs of RMB108.4 million.
. Beijing Company’s operating expenses increased by RMB31.1 million from RMB539.6

million for the three months ended 31 March 2022 to RMB570.7 million for the three
months ended 31 March 2023, representing an increase of 5.8%. The increase was
mainly due to (i) the increase in depreciation expenses of RMB17.7 million and (ii) the
increase in other operating expenses of RMB13.4 million.
Other gains or losses
Other gains or losses of Beijing Company primarily comprised government subsidies, net
loss/gain on property, plant and equipment, gain on recognition of negative goodwill, impairment
loss on property, plant and equipment, written off account payables, and others.
For the year ended 31 December 2020, other gains of Beijing Company amounted to
RMB119.1 million, which was mainly contributed by government subsidies, gain on recognition of
negative goodwill, written off account payables, and others.
RMB36.6 million, which was mainly contributed by government subsidies, which offset losses in
others.
RMB12.7 million, which was mainly contributed by government subsidies, which partially offset
the impairment loss on property, plant and equipment.
For the three months ended 31 March 2023, other gains of Beijing Company amounted to
RMB14.3 million, which was mainly contributed by government subsidies.
Other Income
The other income of Beijing Company primarily comprised asset leasing income, sales of
equipment, other services income, and others.
. Beijing Company’s other income increased by RMB12.2 million from RMB42.0 million
for the year ended 31 December 2020 to RMB54.2 million for the year ended 31
December 2021, representing an increase of 29.0%. The increase was mainly due to an
increase in other services income of RMB8.7 million.
. Beijing Company’s other income decreased by RMB43.2 million from RMB54.2 million
December 2022, representing a decrease of 79.7%. The decrease was mainly due to a
decrease in other services income of RMB38.8 million.
. Beijing Company’s other income increased by RMB1.5 million from RMB1.5 million
for the three months ended 31 March 2022 to RMB3.0 million for the three months
ended 31 March 2023, representing an increase of 100.0%. The increase was mainly due
to the increase in others income of RMB1.9 million.
– III-2 –
Finance Costs
Finance costs represent interest expenses on bank borrowings, borrowings from related
parties, other borrowings, and lease liabilities. Beijing Company recorded finance costs of
RMB661.5 million, RMB918.2 million, RMB915.9 million, RMB184.2 million and RMB197.5
million for each of the years ended 31 December 2020, 2021 and 2022, and the three months ended
31 March 2022 and 2023, respectively. The changes over the Reporting Period were relatively
consistent with the changes in the total borrowings of Beijing Company over the same period.
Income Tax Expenses
The income tax expenses mainly represent the PRC current income tax and deferred income
tax.
. Beijing Company’s income tax expenses increased by RMB47.6 million from

approximately RMB102.7 million for the year ended 31 December 2020 to RMB150.3
million for the year ended 31 December 2021, representing an increase of 46.3%. The
increase was mainly attributable to the increase in current income tax of RMB51.3
million offset by the decrease in deferred income tax of RMB3.7 million.
. Beijing Company’s income tax expenses increased by RMB21.1 million from

RMB150.3 million for the year ended 31 December 2021 to RMB171.4 million for the
year ended 31 December 2022, representing an increase of 14.0%. The increase was
mainly attributable to the increase in current income tax of RMB8.3 million and the
increase in deferred income tax of RMB12.8 million.
. Beijing Company’s income tax expenses increased by RMB18.6 million from RMB35.8
mainly attributable to an increase in current income tax of RMB19.1 million offset by
the decrease in deferred income tax of RMB0.5 million.
Profit for the year/period
Beijing Company’s profit increased by RMB247.6 million from RMB668.3 million for the
year ended 31 December 2020 to RMB915.9 million for the year ended 31 December 2021,
representing an increase of 37.0%. The increase was mainly attributable to the increase in revenue
due to the reasons as stated in the above paragraph headed ‘‘Revenue’’.
Beijing Company’s profit decreased by RMB145.2 million from RMB915.9 million for the
representing a decrease of 15.9%. The decrease was mainly attributable to the increase in operating
expenses and decrease in other income due to the reasons as stated in the above paragraphs headed
‘‘Operating Expenses’’ and ‘‘Other Income’’
Beijing Company’s profit increased by RMB53.9 million from RMB224.2 million for the
three months ended 31 March 2022 to RMB278.1 million for the three months ended 31 March
2023, representing an increase of 24.0%. The increase was mainly attributable to the increase in
revenue due to the reasons as stated in the above paragraph headed ‘‘Revenue’’.
Liquidity and Financial Resources and Capital Structure
As at 31 December 2020, 2021, 2022 and 31 March 2023, Beijing Company had total current
assets of RMB7,841.3 million, RMB8,961.6 million, RMB10,745.0 million, and RMB11,413.0
million, respectively, which mainly comprised inventories, bills and accounts receivable,
prepayments, deposits and other receivables, amounts due from related parties, restricted deposits,
and cash and cash equivalents.
– III-3 –
As at 31 December 2020, 2021, 2022 and 31 March 2023, Beijing Company had total current
liabilities of RMB5,861.0 million, RMB10,373.4 million, RMB10,121.7 million and RMB10,270.8
million, respectively, which mainly comprised bills and accounts payable, construction cost
payables, other payables and accruals, amounts due to related parties, current portion of — bank
borrowings, borrowing from related parties, other borrowings and lease liabilities, and tax payable.
As at 31 December 2020, 2021, 2022 and 31 March 2023, Beijing Company had cash and
cash equivalents of RMB2,111.3 million, RMB783.0 million, RMB2,494.9 million and
RMB2,956.4 million, respectively.
As at the end of the Reporting Period, the substantial part of the cash and bank balances of
Beijing Company were denominated in RMB.
Beijing Company historically met its liquidity requirements through a combination of the
cash flow generated from their daily operation and short-term and long-term borrowings.
As at 31 December 2020, 2021, 2022 and 31 March 2023, Beijing Company had bank
borrowings, borrowings from related parties and other borrowings of RMB15,166.2 million,
RMB20,564.8 million, RMB19,606.7 million and RMB20,596.5 million, respectively.
Beijing Company’s weighted average interest rate on capitalized borrowings is 4.53%, 4.53%,
3.78% and 3.52% for the years ended 31 December 2020, 2021, 2022 and the three months ended
31 March 2023, respectively.
The long-term and short-term borrowings of Beijing Company were denominated in RMB.
The total equity of Beijing Company as at 31 December 2020, 2021, 2022 and 31 March
2023 was RMB11,306.9 million, RMB11,083.1 million, RMB13,102.2 million and RMB13,360.2
million, respectively.
Gearing Ratio
As at 31 December 2020, 2021, 2022 and 31 March 2023, the gearing ratio of Beijing
Company (being net debt over total capital) was 54.2%, 64.5%, 57.2% and 57.5%, respectively.
The objective of the treasury policies of Beijing Company is to minimise risks. Beijing
Company adopts a prudent treasury policy towards its overall business operation and manage as
well as monitor its financial risk exposures to ensure that appropriate measures are implemented on
a timely and effective manner.
Charge on Assets
Beijing Company’s bank borrowings of RMB2,905.7 million, RMB3,117.6 million,

RMB2,234.8 million and RMB2,691.44 million as at 31 December 2020, 2021 and 2022 and 31
March 2023, respectively, were secured by certain property, plant and equipment. Beijing
Company’s bank borrowings of nil, nil, RMB2.5 million and RMB2.6 million as at 31 December
2020, 2021 and 2022 and 31 March 2023, respectively, were secured by its banks balance. Beijing
Company’s bank borrowings of RMB2,987.6 million, RMB4,521.3 million, RMB5,586.6 million
and RMB5,368.3 million as at 31 December 2020, 2021 and 2022 and 31 March 2023,
respectively, were secured against the rights on certain accounts receivable.
Contingent Liabilities
As at 31 December 2020, 2021 and 2022 and 31 March 2023, Beijing Company did not have
any significant contingent liabilities.
– III-4 –
Foreign Exchange Exposure
Beijing Company is principally operating in the PRC, with all transactions denominated in
RMB. Beijing Company is not exposed to any significant foreign exchange exposure and carried
out no foreign exchange hedging activities.
Material Investment, Acquisition and Disposals
During the Reporting Period, Beijing Company acquired the equity interests in various
companies, details of which are set out in note 37 of the accountants’ report of Beijing Company
as set out in Appendix IIA to this circular.
The details of Beijing Company’s investments in associates as at 31 December 2020, 2021,

2022 and 31 March 2023 are set out in note 20 of the accountants’ report of Beijing Company in
Appendix IIA to this circular.
Save as disclosed above, Beijing Company did not have any material acquisition, disposals or
significant investment during the Reporting Period. Beijing Company has no specific future plan
for material investments or capital assets in the coming year after the Acquisitions. The expected
sources of funding for Beijing Company’s future plans for material investments or capital assets in
the coming year after the Acquisitions are internal resources.
Employees and Remuneration Policies
As at 31 December 2020, 2021, 2022 and 31 March 2023, Beijing Company had an average
of 860, 918, 980 and 987 employees, respectively.
Beijing Company recruits, employs, promotes and remunerates its employees based on their
qualifications, experience, skills, performances and contributions. Remuneration is also determined
with reference to, among others, the market trend. The staff costs of Beijing Company for the years
ended 31 December 2020, 2021 and 2022 and the three months ended 31 March 2022 and 2023
were RMB140.5 million, RMB197.5 million, RMB305.9 million, RMB60.4 million and RMB59.9
million, respectively, which mainly included wages, salaries and bonuses, staff welfare, and
pension costs, details of which are set out in note 8 of the accountants’ report of Beijing Company
as set out in Appendix IIA to this circular.
Prospects
Upon completion of the Acquisitions, Beijing Company will continue to engage in generation
and sale of electricity in the PRC. Save as disclosed above, Beijing Company has no specific
future plan for material investments or capital assets in the coming year after the Acquisitions.
II. MANAGEMENT DISCUSSION AND ANALYSIS OF HEILONGJIANG COMPANY
Set out below is the management discussion and analysis on Heilongjiang Company and its
subsidiaries for the Reporting Period. The discussion and analysis relate to the consolidated results and
financial position of Heilongjiang Company. The following discussion and analysis should be read in
conjunction with the accountants’ report set out in Appendix IIB to this circular.
Heilongjiang Company was incorporated in the PRC on 4 July 2016 as a limited liability company
and is principally engaged in generation and sales of electricity in the PRC, including investment,
development, operation and management of photovoltaic power, wind power, thermal plants, and
provision of energy storage, green power transportation and integrated intelligent energy solution
services. For further details of Heilongjiang Company, please refer to the section headed ‘‘Information
of the Target Companies’’ of the Letter from the Board in this circular.
– III-5 –
Revenue
Heilongjiang Company recorded revenue of RMB401.8 million, RMB914.6 million,

RMB1,282.2 million, RMB290.1 million and RMB366.3 million for the years ended 31 December
2020, 2021 and 2022 and the three months ended 31 March 2022 and 2023, respectively. During
the Reporting Period, Heilongjiang Company generated revenue from three segments, being (i)
wind power electricity, (ii) photovoltaic power electricity, and (iii) biomass segment.
. With respect to the wind power electricity segment, Heilongjiang Company recorded
revenue of nil, nil, RMB97.4 million, RMB13.9 million and RMB30.2 million for the
years ended 31 December 2020, 2021 and 2022 and the three months ended 31 March
2022 and 2023, respectively;
. With respect to the photovoltaic power electricity segment, Heilongjiang Company

recorded revenue of RMB401.8 million, RMB914.6 million, RMB951.8 million,
RMB264.0 million and RMB230.7 million for the years ended 31 December 2020,
2021 and 2022 and the three months ended 31 March 2022 and 2023, respectively; and
. With respect to the biomass segment, Heilongjiang Company recorded revenue of nil,
nil, RMB232.9 million, RMB12.2 million and RMB105.5 million for the years ended 31
December 2020, 2021 and 2022 and the three months ended 31 March 2022 and 2023,
respectively.
The general increase in revenue of Heilongjiang Company during the Reporting Period was
primarily due to the increase in revenue from the photovoltaic power electricity segment for the
year ended 31 December 2021 and the increase in revenue from the wind power electricity segment
and biomass segment since the year ended 31 December 2022.
Segment Information
During the Reporting Period, Heilongjiang Company generated revenue from three segments,
being the sale of (i) wind power electricity; (ii) photovoltaic power electricity; and (iii) biomass in
the PRC. Heilongjiang Company’s sales of electricity were made to power grid companies at the
tariff rates agreed with the respective regional and provincial power grid companies as approved by
the relevant government authorities in the PRC.
Operating Expenses
The operating expenses of Heilongjiang Company primarily comprised fuel costs,

depreciation, staff costs, repairs and maintenance, subcontracting costs, consumables and other
operating expenses.
. Heilongjiang Company’s operating expenses increased by RMB278.4 million from

mainly due to (i) the increase in depreciation expenses of RMB217.2 million; (ii) the
increase in subcontracting costs of RMB29.6 million.

mainly due to (i) the increase in fuel costs of RMB135.4 million and (ii) the increase in
depreciation expenses of RMB111.0 million.
– III-6 –

RMB191.8 million for the three months ended 31 March 2022 to RMB266.4 million for
the three months ended 31 March 2023, representing an increase of 38.9%. The increase
was mainly due to (i) the increase in fuel costs of RMB29.6 million and (ii) the increase
in depreciation expenses of RMB38.9 million.
Other gains or losses of Heilongjiang Company primarily comprised gain on bargain purchase
of subsidiaries, gain on deregistration of a subsidiary, government subsidies, impairment loss on
property, plant and equipment and profits on sales of material.
For the year ended 31 December 2020, other gains of Heilongjiang Company amounted to
RMB9.2 million, which was mainly due to the gain on bargain purchase of subsidiaries of
RMB15.5 million offset by the impairment loss on property, plant and equipment of RMB6.4
million.
RMB3.4 million, which comprised government subsidies and gain on deregistration of a subsidiary.
RMB7.1 million, which was mainly due to the increase in gain on bargain purchase of subsidiaries.
For the three months ended 31 March 2023, other gains of Heilongjiang Company amounted
to RMB1.6 million, which comprised government subsidies.
Other Income
The other income of Heilongjiang Company primarily comprised compensation received and
sundry income.
. Heilongjiang Company’s other income increased by RMB0.1 million from RMB0.4

million for the year ended 31 December 2020 to RMB0.5 million for the year ended 31
December 2021. The increase was mainly due to the increase in compensation received
of RMB0.5 million.

December 2022. The increase was mainly due to the increase in sundry income of
RMB0.9 million.

months ended 31 March 2023. The increase was mainly due to the increase in sundry
income of RMB0.1 million.
Finance Costs
Finance costs represent interest expenses on bank borrowings, other borrowings, borrowing
from a related party and lease liabilities. Heilongjiang Company recorded finance costs of
RMB173.2 million, RMB335.8 million, RMB397.7 million, RMB83.1 million and RMB92.2
million for each of the years ended 31 December 2020, 2021 and 2022, and the three months ended
31 March 2022 and 2023, respectively. The steady increase in finance costs was mainly
attributable to business need of Heilongjiang Company for borrowings following the increase in its
scale of operation.
– III-7 –
Income Tax Expenses
tax.
. Heilongjiang Company recorded an income tax credit of RMB1.6 million for the year
ended 31 December 2020. Heilongjiang Company’s income tax expenses increased by
RMB10.2 million to RMB8.6 million for the year ended 31 December 2021. The
increase was mainly attributable to the increase in current income tax of RMB10.5
million as a result of the business growth in 2021, offset by the increase in deferred
income tax of RMB0.3 million.
. Heilongjiang Company’s income tax expenses decreased by RMB0.1 million from

RMB8.6 million for the year ended 31 December 2021 to RMB8.5 million for the year
ended 31 December 2022, representing a decrease of 0.7%. The decrease was mainly
attributable to the decrease in current income tax of RMB0.2 million.
. Heilongjiang Company’s income tax expenses decreased by RMB0.5 million from

RMB2.7 million for the three months ended 31 March 2022 to RMB2.2 million for the
three months ended 31 March 2023, representing an decrease of 19.6%. The decrease
was mainly attributable to the increase in the deferred income tax credit of RMB0.5
million.
Heilongjiang Company’s profit increased by RMB54.6 million from RMB9.1 million for the
representing an increase of 600.3%. The increase was mainly attributable to the increase in revenue
due to the reasons as stated in the above paragraph headed ‘‘Revenue’’.
Heilongjiang Company’s profit decreased by RMB14.7 million from RMB63.7 million for the
expenses and finance costs due to the reasons as stated in the above paragraphs headed ‘‘Operating
Expenses’’ and ‘‘Finance Costs’’ following the increase in Heilongjiang Company’s scale of
operation.
Heilongjiang Company’s profit decreased by RMB5.2 million from RMB13.0 million for the
three months ended 31 March 2022 to RMB7.8 million for the three months ended 31 March 2023,
expenses and finance costs due to the reasons as stated in the above paragraphs headed ‘‘Operating
Expenses’’ and ‘‘Finance Costs’’ following the increase in Heilongjiang Company’s scale of
operation.
As at 31 December 2020, 2021, 2022 and 31 March 2023, Heilongjiang Company had total
current assets of RMB1,565.9 million, RMB1,028.2 million, RMB1,184.3 million, and
RMB1,235.0 million, respectively, which mainly comprised inventories, trade and bills
receivables, prepayments, deposits and other receivables and cash and cash equivalents.
current liabilities of RMB674.1 million, RMB715.2 million, RMB1,647.6 million and RMB1,607.1
million, respectively, which mainly comprised trade and bills payables, construction payables,
contract liabilities, other payables and accrued charges, bank borrowings, borrowings from a
related party, lease liabilities and tax payables.
– III-8 –
As at 31 December 2020, 2021, 2022 and 31 March 2023, Heilongjiang Company had cash
and cash equivalents of RMB197.3 million, RMB91.8 million, RMB345.5 million and RMB241.6
Heilongjiang Company were denominated in RMB.
Heilongjiang Company historically met its liquidity requirements through a combination of

the cash flow generated from their daily operation and short-term and long-term borrowings.
borrowings of RMB7,013.7 million, RMB6,543.6 million, RMB8,814.8 million and RMB8,893.4
Heilongjiang Company’s effective interest rate on bank borrowings was in the range of
4.05%-5.15%, 3.30%-5.15%, 3.10%-4.80% and 2.95%-4.80% for the years ended 31 December
2020, 2021, 2022 and the three months ended 31 March 2023, respectively.
The long-term and short-term borrowings of Heilongjiang Company were denominated in

RMB.
The total equity of Heilongjiang Company as at 31 December 2020, 2021, 2022 and 31
March 2023 was RMB1,143.9 million, RMB1,240.4 million, RMB1,773.9 million and RMB1,890.4
Gearing Ratio
As at 31 December 2020, 2021, 2022 and 31 March 2023, the gearing ratio of Heilongjiang
Company (being total net debt over total capital) was 85.9%, 84.3%, 83.0% and 82.4%,
respectively.
The objective of the treasury policies of Heilongjiang Company is to minimise risks.

Heilongjiang Company adopts a prudent treasury policy towards its overall business operation and
manage as well as monitor its financial risk exposures to ensure that appropriate measures are
implemented on a timely and effective manner.
Charge on Assets
Heilongjiang Company’s secured bank borrowings were secured by its property, plant and
equipment, and trade receivables amounting to RMB1,096.5 million, RMB344.6 million,
RMB487.4 million and RMB570.8 million as at 31 December 2020, 2021 and 2022 and 31 March
2023, respectively.
Other than as disclosed above, the entire equity interests in Tailai Haoxin Photovoltaic Power
Generation Co., Limited* (‘‘泰來好新光伏發電有限公司’’) and Daqing Huaguang Solar Power
Generation Co., Limited* (‘‘大慶華光太陽能發電有限責任公司’’), being two subsidiaries of
Heilongjiang Company, had been pledged to secure bank borrowings with carrying amount of
RMB114.3 million, RMB140.9 million, RMB126.4 million and RMB126.3 million as at 31
December 2020, 2021, 2022 and 31 March 2023, respectively.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, Heilongjiang Company did not
have any material contingent liabilities.
– III-9 –
Heilongjiang Company is principally operating in the PRC, with all transactions denominated
in RMB. Heilongjiang Company is not exposed to any significant foreign exchange exposure and
carried out no foreign exchange hedging activities.
During the year ended 31 December 2020, SPIC assigned 100% equity interest in SPIC
Heilongjiang New Energy Co., Limited.* (‘‘國家電投集團黑龍江新能源有限公司’’) (‘‘SPIC
Heilongjiang’’) to Heilongjiang Company as a capital injection from shareholder. During year
ended 31 December 2022, Heilongjiang Company entered into an agreement with a third party,
pursuant to which third party agreed to acquired 40.35% equity interests in SPIC Heilongjiang, by
a capital injection of RMB300,000,000. Apart from the diluted shareholding owned by
Heilongjiang Company, there were no material changes on investment in SPIC Heilongjiang.
For details of the acquisitions and disposals of Heilongjiang Company during the Reporting
Period, please refer to notes 43 and 46 of the accountants’ report of Heilongjiang Company as set
out in Appendix IIB to this circular.
Heilongjiang Company has no specific future plan for material investments or capital assets
in the coming year after the Acquisitions. The expected sources of funding for Heilongjiang
Company’s future plans for material investments or capital assets in the coming year after the
Acquisitions are a combination of internal resources and external financing.
As at 31 December 2020, 2021, 2022 and 31 March 2023, Heilongjiang Company had an
average of 120, 152, 217 and 259 employees, respectively.
Heilongjiang Company recruits, employs, promotes and remunerates its employees based on
their qualifications, experience, skills, performances and contributions. Remuneration is also
determined with reference to, among others, the market trend. The staff costs of Heilongjiang
Company for the years ended 31 December 2020, 2021 and 2022 and the three months ended 31
March 2022 and 2023 were RMB25.0 million, RMB49.6 million, RMB67.0 million, RMB18.8
million and RMB25.4 million, respectively, which mainly included wages, salaries and bonuses,
staff welfare and pension costs, details of which are set out in note 11 of the accountants’ report of
Heilongjiang Company as set out in Appendix IIB to this circular.
Prospects
Upon completion of the Acquisitions, Heilongjiang Company will continue to engage in

investment holdings, generation and sales of electricity and the development of power plants in the
PRC. Save as disclosed above, Heilongjiang Company has no specific future plan for material
investments or capital assets in the coming year after the Acquisitions.
III. MANAGEMENT DISCUSSION AND ANALYSIS OF FUJIAN COMPANY
Set out below is the management discussion and analysis on Fujian Company and its subsidiaries
for the Reporting Period. The discussion and analysis relate to the consolidated results and financial
position of Fujian Company. The following discussion and analysis should be read in conjunction with
the accountants’ report set out in Appendix IIC to this circular.
– III-10 –
Fujian Company was incorporated in the PRC on 14 April 2020 as a limited liability company and
is principally engaged in investment holdings, generation and sales of electricity and the development of
power plants in the PRC. For further details of Fujian Company, please refer to the section headed
‘‘Information of the Target Companies’’ of the Letter from the Board in this circular.
Revenue
Fujian Company recorded revenue of RMB74.5 million, RMB220.2 million, RMB371.9
million, RMB86.8 million and RMB136.9 million for the years ended 31 December 2020, 2021 and
2022 and the three months ended 31 March 2022 and 2023, respectively. During the Reporting
Period, Fujian Company generated revenue from four segments, being (i) wind power generation,
(ii) thermal power generation; (iii) photovoltaic power generation; and (iv) energy storage.
. With respect to the wind power generation segment, Fujian Company recorded revenue
of nil, RMB80.9 million, RMB215.9 million, RMB54.9 million and RMB71.3 million
for the years ended 31 December 2020, 2021 and 2022 and the three months ended 31
March 2022 and 2023, respectively;
. With respect to the thermal power generation segment, Fujian Company recorded
revenue of nil, nil, RMB5.9 million, nil and RMB8.9 million for the years ended 31
respectively;
. With respect to the photovoltaic power generation segment, Fujian Company recorded
revenue of RMB74.5 million, RMB139.3 million, RMB150.2 million, RMB31.9 million
and RMB38.6 million for the years ended 31 December 2020, 2021 and 2022 and the
three months ended 31 March 2022 and 2023, respectively; and
. With respect to the energy storage segment, Fujian Company recorded revenue of nil,
nil, nil, nil and RMB18.1 million for the years ended 31 December 2020, 2021 and
2022 and the three months ended 31 March 2022 and 2023, respectively.
The continuous increase in revenue of Fujian Company during the Reporting Period was
primarily due to (i) the subsidiaries of Fujian Company which were in the construction phase being
gradually completed and put into operation; and (ii) Fujian Company’s continuous acquisitions and
establishment of new project companies.
Segment Information
During the Reporting Period, Fujian Company generated revenue from four segments, being
(i) wind power generation; (ii) thermal power generation; (iii) photovoltaic power generation; and
(iv) energy storage in the PRC. Majority of the sales of electricity to regional and provincial power
grid companies are pursuant to the power purchase agreements entered into between Fujian
Company and the respective regional and provincial power grid companies. Fujian Company’s
sales of electric power were made to these power grid companies at the tariff rates agreed with the
respective regional and provincial power grid companies as approved by the relevant government
authorities.
Operating Expenses
The operating expenses of Fujian Company primarily comprised depreciation, staff costs,
repairs and maintenance, and other operating expenses.
. Fujian Company’s operating expenses increased by RMB89.2 million from RMB57.2
million for the year ended 31 December 2020 to RMB146.4 million for the year ended
31 December 2021, representing an increase of 155.9%. The increase was mainly due to
(i) the increase in depreciation expenses of RMB49.6 million and (ii) the increase in
other operating expenses of RMB24.2 million.
– III-11 –

(i) the increase in depreciation expenses of RMB55.9 million and (ii) the increase in
staff costs of RMB35.0 million.

mainly due to (i) the increase in depreciation expenses of RMB12.8 million; (ii) the
increase in other operating expenses of RMB11.9 million; and (iii) the increase in staff
costs of RMB10.5 million.
Other Income
The other income of Fujian Company primarily comprised rental income, income from
provision of repairs and maintenance services, income from provision of IT and other services and
others.
. Fujian Company’s other income decreased by RMB3.1 million from RMB4.0 million for
the year ended 31 December 2020 to RMB0.9 million for the year ended 31 December
2021. The decrease was mainly due to the decrease in income from provision of IT and
other services and other income of RMB3.1 million.
. Fujian Company’s other income increased by RMB9.8 million from RMB0.9 million for
the year ended 31 December 2021 to RMB10.7 million for the year ended 31 December
2022. The increase was mainly due to the increase in income from provision of IT and
other services of RMB9.0 million.
. Fujian Company’s other income increased by RMB3.7 million from RMB1.4 million for
the three months ended 31 March 2022 to RMB5.1 million for the three months ended
31 March 2023. The increase was mainly due to the increase in (i) rental income of
RMB1.5 million; and (ii) income from provision of IT and other services of RMB3.1
million.
Finance Costs
Finance costs represent interest expenses on bank loans and other borrowings and borrowings
from related parties. Fujian Company recorded finance costs of RMB22.9 million, RMB68.1
million, RMB85.6 million, RMB19.2 million and RMB23.2 million for each of the years ended 31
December 2020, 2021 and 2022, and the three months ended 31 March 2022 and 2023,
respectively. Fujian Company’s increasing finance costs over the Reporting Period were mainly
due to the increase in total borrowings with the increasing number of subsidiaries owned by Fujian
Company through mergers and acquisitions and new subsidiaries over the same period.
Income Tax Expenses
tax.
. Fujian Company’s income tax expenses increased by RMB1.5 million from RMB0.9
December 2021, representing an increase of 166.4%. The increase was mainly
attributable to the increase in income tax of RMB0.9 million as a result of the expiry
of period during which income tax benefit was enjoyed by certain subsidiaries of Fujian
Company.
– III-12 –
. Fujian Company’s income tax expenses increased by RMB12.5 million from RMB2.4
December 2022, representing an increase of 529.4%. The increase was mainly
attributable to the increase in deferred income tax of RMB12.2 million.
. Fujian Company’s income tax expenses increased by RMB4,808,000 from RMB34,000

for the three months ended 31 March 2022 to RMB4,842,000 for the three months
ended 31 March 2023, representing an increase of 14,141.2%. The increase was mainly
attributable to the increase in income tax of RMB4,808,000 as a result of the expiry of
period during which income tax benefit was enjoyed by certain subsidiaries of Fujian
Company.
Fujian Company’s profit increased by RMB26.9 million from RMB8.0 million for the year
ended 31 December 2020 to RMB34.9 million for the year ended 31 December 2021, representing
an increase of 336.8%. The increase was mainly attributable to the increase in revenue due to the
reasons as stated in the above paragraph headed ‘‘Revenue’’.
Fujian Company’s profit increased by RMB10.7 million from RMB34.9 million for the year
an increase of 30.7%. The increase was mainly attributable to the increase in revenue due to the
reasons as stated in the above paragraph headed ‘‘Revenue’’.
Fujian Company’s profit decreased by RMB13.7 million from RMB17.1 million for the three
months ended 31 March 2022 to RMB3.4 million for the three months ended 31 March 2023,
representing an decrease of 80.1%. The decrease was mainly attributable to the increase in
operating expenses and decrease in other income due to the reasons as stated in the above
paragraphs headed ‘‘Operating Expenses’’, ‘‘Finance Costs’’ and ‘‘Income Tax Expenses’’.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, Fujian Company had total
current assets of RMB439.8 million, RMB577.8 million, RMB928.9 million, and RMB981.4
million, respectively, which mainly comprised inventories, accounts receivable, prepayments,
deposits and other receivables, amounts due from related parties, restricted deposits and cash and
cash equivalents.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, Fujian Company had total
current liabilities of RMB373.1 million, RMB437.2 million, RMB1,054.9 million and RMB992.2
million, respectively, which mainly comprised construction costs payable, other payables and
accrued charges, amounts due to related parties, current portion of bank and other borrowings,
current portion of borrowings from related parties, lease liabilities and tax payable.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, Fujian Company had cash and
cash equivalents of RMB62.5 million, RMB72.6 million, RMB154.1 million and RMB111.4
As at the end of the Reporting Period, the cash and bank balances of Fujian Company were
denominated in RMB.
Fujian Company historically met its liquidity requirements through a combination of the cash
flow generated from their daily operation and borrowings.
As at 31 December 2020, 2021, 2022 and 31 March 2023, Fujian Company had bank and
other borrowings, borrowings from related parties and lease liabilities of RMB635.4 million,
RMB1,795.5 million, RMB2,795.2 million and RMB2,809.7 million, respectively.
– III-13 –
Fujian Company’s weighted average interest rate on capitalized borrowings is 4.46%, 4.51%,
4.29% and 0.88% for the years ended 31 December 2020, 2021, 2022 and the three months ended
31 March 2023, respectively.
The long-term and short-term borrowings of Fujian Company were denominated in RMB.
The total equity of Fujian Company as at 31 December 2020, 2021 and 2022 and 31 March
2023 was RMB289.2 million, RMB761.6 million, RMB1,653.5 million and RMB1,657.6 million,
respectively.
Gearing Ratio
As at 31 December 2020, 2021 and 2022 and 31 March 2023, the gearing ratio of Fujian
The objective of the treasury policies of Fujian Company is to minimise risks. Fujian
Charge on Assets
Fujian Company’s secured bank borrowings, other borrowings and borrowings from related
parties were secured by accounts receivable with carrying amounts of RMB136.2 million,
RMB206.5 million, RMB370.6 million and RMB436.1 million as at 31 December 2020, 2021 and
2022 and 31 March 2023, respectively.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, Fujian Company did not have
any material contingent liabilities.
Fujian Company is principally operating in the PRC, with all transactions denominated in
RMB. Fujian Company is not exposed to any significant foreign exchange exposure and carried out
no foreign exchange hedging activities.
For the year ended 31 December 2022, Fujian Company acquired 50% equity interest in
Shenzhen Fenghe Energy Investment Co. Ltd* (深圳峰和能源投資有限公司), a company
principally engaged in generation and sale of electricity in the PRC with a consideration at
RMB200 million. The fair value of the equity interest acquired as at 31 March 2023 was
RMB216.9 million, representing 4.3% of Fujian Company’s total assets. As at 31 December 2022
and 31 March 2023, the amount of undistributed post-acquisition reserves were RMB13.2 million
and RMB16.9 million, respectively. The investment strategy of Fujian Company for these
significant investments is to optimize the size and quality of assets in accordance with its
development plan, promote continuous improvement of its revenue and profitability, and achieve
sustainable development.
The details of Fujian Company’s investments in joint venture as at 31 December 2020, 2021
and 2022 and 31 March 2023 are set out in note 19 of the accountants’ report of Fujian Company
in Appendix IIC to this circular.
Save as disclosed above, Fujian Company did not have any material acquisition, disposals or
significant investment during the Reporting Period. Fujian Company has no specific future plan for
material investments or capital assets in the coming year after the Acquisitions. The expected
– III-14 –
sources of funding for Fujian Company’s future plans for material investments or capital assets in
the coming year after the Acquisitions are a combination of internal resources and external
financing.
As at 31 December 2020, 2021, 2022 and 31 March 2023, Fujian Company had an average of
83, 117, 170 and 208 employees, respectively.
Fujian Company recruits, employs, promotes and remunerates its employees based on their
with reference to, among others, the market trend. The staff costs of Fujian Company for the years
million, respectively, which mainly included wages, salaries and bonuses and staff welfare, details
of which are set out in note 6 of the accountants’ report of Fujian Company as set out in Appendix
IIC to this circular.
Prospects
Upon completion of the Acquisitions, Fujian Company will continue to engage in investment
holdings, generation and sales of electricity and the development of power plants in the PRC. Save
as disclosed above, Fujian Company has no specific future plan for material investments or capital
assets in the coming year after the Acquisitions.
IV. MANAGEMENT DISCUSSION AND ANALYSIS OF SHANXI COMPANY
Set out below is the management discussion and analysis on Shanxi Company and its subsidiaries
(together, the ‘‘Shanxi Company’’) for the Reporting Period. The discussion and analysis relate to the
consolidated results and financial position of Shanxi Company. The following discussion and analysis
should be read in conjunction with the accountants’ report set out in Appendix IID to this circular.
Shanxi Company was incorporated in the PRC on 31 July 2017 as a limited liability company and
is principally engaged in generation and sales of electricity in the PRC, including investment,
development, operation and management of photovoltaic power and wind power plants. For further
details of Shanxi Company, please refer to the section headed ‘‘Information of the Target Companies’’
of the Letter from the Board in this circular.
Revenue
Shanxi Company recorded revenue of RMB68.3 million, RMB120.8 million, RMB185.0

million, RMB23.9 million and RMB147.7 million for the years ended 31 December 2020, 2021 and
2022 and the three months ended 31 March 2022 and 2023, respectively. During the Reporting
Period, Shanxi Company generated revenue from two segments, being (i) photovoltaic power
electricity; and (ii) wind power electricity.
. With respect to the photovoltaic power electricity segment, Shanxi Company recorded
revenue of RMB68.3 million, RMB120.8 million, RMB118.8 million, RMB23.9 million
and RMB26.9 million for the years ended 31 December 2020, 2021 and 2022 and the
three months ended 31 March 2022 and 2023, respectively; and
– III-15 –
. With respect to the wind power electricity segment, Shanxi Company recorded revenue
of nil, nil, RMB66.2 million, nil and RMB120.8 million for the years ended 31
respectively.
The continuous increase in revenue of Shanxi Company during the Reporting Period was
primarily due to the various acquisitions made by Shanxi Company as detailed in the below
paragraph headed ‘‘Material Investment, Acquisition and Disposals’’.
Segment Information
During the Reporting Period, Shanxi Company generated revenue from two segments, being
the sale of (i) photovoltaic power electricity and (ii) wind power electricity in the PRC. Shanxi
Company’s major customers were regional and provincial power grid companies.
Operating Expenses
The operating expenses of Shanxi Company primarily comprised depreciation, staff costs,
repairs and maintenance costs, and other operating expenses.
. Shanxi Company’s operating expenses increased by RMB40.4 million from RMB49.2

December 2021, representing an increase of 82.1%. The increase was mainly due to (i)
the increase in depreciation expenses of RMB21.4 million, (ii) the increase in staff costs
of RMB6.8 million, and (iii) the increase in repair and maintenance costs of RMB7.1
million, associated with Shanxi Company’s acquisitions and business expansion.

(i) the increase in depreciation expenses RMB21.6 million, (ii) the increase in staff
costs of RMB8.2 million, (iii) the increase in repairs and maintenance costs of
RMB11.6 million, and (iv) the increase in other operating expenses of RMB9.6 million,
associated with Shanxi Company’s acquisitions and business expansion.

mainly due to (i) the increase in depreciation expenses of RMB36.7 million, (ii) the
increase in staff costs of RMB7.5 million, and (iii) the increase in repairs and
maintenance costs of RMB7.4 million, associated with Shanxi Company’s acquisitions
and business expansion.
Other gains or losses of Shanxi Company primarily comprised gains from re-measurement of
equity at fair value, and other.
For the year ended 31 December 2020, other losses of Shanxi Company amounted to nil.
For the year ended 31 December 2021, other gains of Shanxi Company amounted to RMB3.8
million, which was mainly due to bad debt recovered.
For the year ended 31 December 2022, other gains of Shanxi Company amounted to RMB9.6
million, which was mainly due to the gains on investment.
For the three months ended 31 March 2023, other gains of Shanxi Company amounted to
RMB6,791.7, which was mainly due to the gains on investment.
– III-16 –
Other Income
The other income of Shanxi Company primarily comprised incentive scheme, inventories
gain, waiver of liabilities, and others.
. Shanxi Company’s other income increased by RMB4.8 million from RMB8.5 million
December 2021, representing an increase of 56.5%. The increase was mainly due to (i)
the increase in waiver of liabilities of RMB2.3 million, and (ii) the increase in operation
and maintenance income of RMB1.8 million.
December 2022, representing an increase of 226.3%. The increase was mainly due to
the increase in electricity sales services fee income of RMB27.3 million.
for the three months ended 31 March 2022 to RMB12.4 million for the three months
ended 31 March 2023, representing an increase of 275.8%. The increase was mainly due
to the increase in electricity sales services fee income of RMB9.3 million.
Finance Costs
Finance costs represent interest expenses less amounts capitalised on qualifying assets.
Shanxi Company recorded finance costs of RMB24.6 million, RMB41.7 million, RMB69.2 million,
RMB8.1 million and RMB27.6 million for each of the years ended 31 December 2020, 2021 and
2022, and the three months ended 31 March 2022 and 2023, respectively. The changes were mainly
attributable to the increase in borrowings associated with Shanxi Company’s business expansion.
Income Tax Credit/Expense
The income tax credit/expense mainly represent the PRC current income tax and deferred
income tax.
. Shanxi Company’s income tax credit being RMB0.6 million for the year ended 31
December 2020 changed to an income tax expense of RMB1.8 million for the year
ended 31 December 2021. The change was mainly attributable to increased income tax
associated with Shanxi Company’s business expansion.
. Shanxi Company’s income tax expenses increased by RMB11.4 million from RMB1.8
December 2022. The increase was mainly attributable to increased income tax
associated with Shanxi Company’s business expansion.
. Shanxi Company’s income tax expenses increased by RMB9.1 million from RMB0.6
months ended 31 March 2023. The increase was mainly attributable to increased income
tax associated with Shanxi Company’s business expansion.
Shanxi Company’s profit increased by RMB6.5 million from RMB3.8 million for the year
an increase of 171.1%. The increase was mainly attributable to the increase in revenue associated
with Shanxi Company’s business expansion.
– III-17 –
Shanxi Company’s profit increased by RMB10.4 million from RMB10.3 million for the year
an increase of 101.0%. The increase was mainly attributable to the increase in revenue associated
with Shanxi Company’s business expansion.
Shanxi Company’s profit increased by RMB52.9 million from a loss of RMB3.3 million for
the three months ended 31 March 2022 to a profit of RMB49.7 million for the three months ended
31 March 2023. The increase was mainly attributable to the increase in revenue associated with
Shanxi Company’s business expansion.
As at 31 December 2020, 2021, 2022 and 31 March 2023, Shanxi Company had total current
assets of RMB368.1 million, RMB271.4 million, RMB1,006.7 million, and RMB1,084.4 million,
respectively, which mainly comprised inventories, accounts receivables, prepayments, deposits and
other receivables, restricted deposits, and cash and cash equivalents.
As at 31 December 2020, 2021, 2022 and 31 March 2023, Shanxi Company had total current
liabilities of RMB84.0 million, RMB184.0 million, RMB1,164.4 million and RMB601.8 million,
respectively, which mainly comprised accounts and bills payables, other payables and accrued
charges, bank borrowings, other borrowings, lease liabilities and tax payable.
As at 31 December 2020, 2021, 2022 and 31 March 2023, Shanxi Company had cash and
cash equivalents of RMB259.7 million, RMB108.6 million, RMB453.1 million and RMB455.8
Shanxi Company were denominated in RMB.
Shanxi Company historically met its liquidity requirements through a combination of the cash
flow generated from their daily operation and short-term and long-term borrowings.
As at 31 December 2020, 2021, 2022 and 31 March 2023, Shanxi Company had bank
borrowings and other borrowings of RMB670.1 million, RMB914.4 million, RMB3,437.0 million
and RMB3,600.2 million, respectively.
Shanxi Company had no capitalised borrowings for the years ended 31 December 2020 and
2021. Shanxi Company’s weighted average interest rate on capitalised borrowings was 3.55% and
3.05% for the year ended 31 December 2022 and the three months ended 31 March 2023,
respectively.
The long-term and short-term borrowings of Shanxi Company were denominated in RMB.
The total equity of Shanxi Company as at 31 December 2020, 2021, 2022 and 31 March 2023
was RMB204.7 million, RMB215.0 million, RMB1,084.9 million and RMB1,236.9 million,
respectively.
Gearing Ratio
As at 31 December 2020, 2021, 2022 and 31 March 2023, the gearing ratio of Shanxi
The objective of the treasury policies of Shanxi Company is to minimise risks. Shanxi
– III-18 –
Charge on Assets
Shanxi Company’s secured bank borrowings were secured by certain property, plant and
equipment, right-of-use assets, and accounts receivables amounting to RMB49.3 million, RMB74.0
million, RMB1,850.7 million and RMB1,884.5 million as at 31 December 2020, 2021 and 2022
and 31 March 2023, respectively.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, Shanxi Company did not have
Shanxi Company is principally operating in the PRC, with all transactions denominated in
RMB. Shanxi Company is not exposed to any significant foreign exchange exposure and carried
For the year ended 31 December 2021, Shanxi Company acquired 100% equity interests in (i)
Datong Yunzhou District Longji Green Energy Clean Energy Co., Ltd.* (大同市雲州區隆基綠能清
潔能源有限公司), a company mainly engaged in generation and sale of electricity for a
consideration of RMB37.2 million; and (ii) Guangling County Longxing Green Energy Clean
Energy Co., Ltd.* (廣靈縣隆興綠能清潔能源有限公司), a company mainly engaged in generation
and sale of electricity for a consideration of RMB16.0 million.
For the year ended 31 December 2022, Shanxi Company acquired 100% equity interests in (i)
Shanxi Yulong Group Youyu Niuxinbao Wind Power Generation Co., Ltd.* (山西玉龍集團右玉牛
心堡風力發電有限公司), a company mainly engaged in generation and sale of electricity for a
consideration of RMB761.6 million; and (ii) Shanxi Diantou Clean Energy Technology Co., Ltd.*
(山西電投清潔能源科技有限公司), a company mainly engaged in generation and sale of electricity
for a consideration of RMB185.8 million.
The details of Shanxi Company’s investments in associates as at 31 December 2020, 2021,

2022 and 31 March 2023 are set out in note 17 of the accountants’ report of Shanxi Company in
Appendix IID to this circular.
Shanxi Company has no specific future plan for material investments or capital assets in the
coming year after the Acquisitions. The expected sources of funding for Shanxi Company’s future
plans for material investments or capital assets in the coming year after the Acquisitions are a
combination of internal resources and external financing.
As at 31 December 2020, 2021, 2022 and 31 March 2023, Shanxi Company had an average
of 27, 65, 126 and 170 employees, respectively.
Shanxi Company recruits, employs, promotes and remunerates its employees based on their
with reference to, among others, the market trend. The staff costs of Shanxi Company for the years
million, respectively, which mainly included wages, salaries and bonuses, staff welfare and pension
costs, details of which are set out in note 11 of the accountants’ report of Shanxi Company as set
out in Appendix IID to this circular.
– III-19 –
Prospects
Upon completion of the Acquisitions, Shanxi Company will continue to engage in investment
holdings, generation and sales of electricity and the development of power plants in the PRC. Save
as disclosed above, Shanxi Company has no specific future plan for material investments or capital
assets in the coming year after the Acquisitions.
V. MANAGEMENT DISCUSSION AND ANALYSIS OF JIEYANG COMPANY
Set out below is the management discussion and analysis on Jieyang Company for the Reporting
Period. The discussion and analysis relate to the consolidated results and financial position of Jieyang
Company. The following discussion and analysis should be read in conjunction with the accountants’
report set out in Appendix IIE to this circular.
Jieyang Company was incorporated in the PRC on 21 March 2019 as a limited liability company
and is principally engaged in generation and sales of electricity in the PRC. For further details of
Jieyang Company, please refer to the section headed ‘‘Information of the Target Companies’’ of the
Letter from the Board in this circular.
Revenue
Jieyang Company recorded revenue of nil, RMB124.3 million, RMB848.7 million, RMB287.2
million and RMB262.6 million for the years ended 31 December 2020, 2021 and 2022 and the
three months ended 31 March 2022 and 2023, respectively. The increase in revenue of Jieyang
Company over the years ended 31 December 2020 and 2021 was due to the fact that Jieyang
Company was not yet in operation for the year ended 31 December 2020 and did not record any
revenue. Revenue for the year ended 31 December 2022 was significantly higher than that of the
year ended 31 December 2021 due to fact that the main construction of Jieyang Company’s wind
power project was only completed in the fourth quarter of 2021, with electricity generation starting
thereafter. As a result, revenue for Jieyang Company was initially recorded in December 2021. The
slight decrease in revenue of Jieyang Company over the three months ended 31 March 2022 and
2023 was primarily due to the decrease in wind power electricity generation affected by
availability of wind resources.
Segment Information
During the Reporting Period, Jieyang Company generated revenue from its single segment,
being the sale of wind power electricity in the PRC. For the same period, the major customer of
Jieyang Company is Guangdong Grid Co* (廣東電網有限責任公司), which accounted for 100% of
Jieyang Company’s external revenue.
Operating Expenses
The operating expenses of Jieyang Company primarily comprised depreciation, staff costs,
repairs and maintenance, subcontracting costs, consumables and other operating expenses.
. Jieyang Company’s operating expenses increased by RMB4.2 million from nil for the
year ended 31 December 2020 to RMB4.2 million for the year ended 31 December
2021. The increase was mainly due to the fact that Jieyang Company was not yet in
operation, as the main construction of the wind power project was still in progress for
the year ended 31 December 2020. Therefore, no revenue nor operating expenses were
recorded.
– III-20 –
. Jieyang Company’s operating expenses increased by RMB395.5 million from RMB4.2

31 December 2022, representing an increase of 9,376.4%. The increase was mainly due
to the fact that operating expenses accounted for only one month of operation in the
year ended 31 December 2021, as compared to the full year for the year ended 31
December 2022.
. Jieyang Company’s operating expenses increased by RMB25.7 million from RMB76.4

mainly due to (i) the increase in depreciation expenses of RMB5.7 million, (ii) the
increase in staff costs of RMB4.8 million, and (iii) the increase in other operating
expenses of RMB13.6 million.
Other gains and losses
Other gains and losses of Jieyang Company primarily comprised net gain on disposal of
property, plant and equipment and government grants.
For the years ended 31 December 2020 and 2021, other gains and losses of Jieyang Company
were nil and nil.
For the year ended 31 December 2022, other gains of Jieyang Company amounted to
RMB178,000, which was mainly due to the net gain from the sale of submarine cable equipment to
other subsidiaries of SPIC and government grants received.
For the three months ended 31 March 2023, other gains of Jieyang Company amounted to
RMB9,000, which was mainly due to government grants received.
Finance Costs
Finance costs represent interest expenses on bank borrowings, other borrowings, borrowings
from a related party and lease liabilities, less amounts capitalized in property, plant and equipment.
Jieyang Company recorded finance costs of nil, RMB3.3 million, RMB164.2 million, RMB39.7
million and RMB52.2 million for each of the years ended 31 December 2020, 2021 and 2022, and
the three months ended 31 March 2022 and 2023, respectively. The changes were mainly
attributable to (i) the decrease in capitalized interest expense after completion of the main
construction of Jieyang Company’s wind power project in the fourth quarter of 2021; and (ii) the
changes in amount of borrowings of Jieyang Company.
Income Tax Expenses
The income tax expenses mainly represent the PRC enterprise income tax.
Jieyang Company’s income tax expenses was nil for the year ended 31 December 2020, as
profit before taxation for the same period was nil.
Jieyang Company’s income tax expenses were nil, RMB17,000, nil and nil for each of the
years ended 31 December 2021 and 2022, and the three months ended 31 March 2022 and 2023,
respectively. As Jieyang Company’s offshore wind power projects are in compliance with the
preferential enterprise income tax policy of three-year exemption and three-half reduction of
income tax from the year when the first income is obtained, there was no enterprise income tax
payable for the year ended 31 December 2021 and three months ended 31 March 2022 and 2023,
with the exception of the year ended 31 December 2022, due to receipt of government job
stabilization grants as other income, which did not fall within the above tax exemption.
– III-21 –
Jieyang Company’s profit increased by RMB116.8 million from nil for the year ended 31
December 2020 to RMB116.8 million for the year ended 31 December 2021. The increase was
mainly attributable to the fact that Jieyang Company was not yet in operation for the year ended 31
December 2020 and did not record any revenue and profit.
Jieyang Company’s profit increased by RMB175.5 million from RMB116.8 million for the
representing an increase of 150.2%. The increase was mainly attributable to the fact that Jieyang
Company was in operation for only one month in the year ended 31 December 2021, as compared
to the full year for the year ended 31 December 2022.
Jieyang Company’s profit decreased by RMB41.0 million from RMB171.2 million for the
three months ended 31 March 2022 to RMB130.2 million for the three months ended 31 March
2023, representing a decrease of 24.0%. The decrease was mainly attributable to the decrease in
revenue due to the decrease in wind power electricity generation affected by availability of wind
resources.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, Jieyang Company had total
current assets of RMB16.7 million, RMB165.4 million, RMB1,829.8 million, and RMB1,531.8
million, respectively, which mainly comprised accounts receivables, prepayments, deposits and
other receivables, loans to a fellow subsidiary, amounts due from fellow subsidiaries and cash and
cash equivalents.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, Jieyang Company had total
current liabilities of RMB526.7 million, RMB2,507.2 million, RMB2,132.4 million and
RMB1,971.4 million, respectively, which mainly comprised construction costs payables, other
payables and accrued charges, current portion of bank borrowings, current portion of other
borrowings, current portion of borrowings from related party, current portion of lease liabilities
and tax payables.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, Jieyang Company had cash and
cash equivalents of RMB15.6 million, RMB31.7 million, RMB35.8 million and RMB106.7 million,
respectively.
Jieyang Company were denominated in RMB.
Jieyang Company historically met its liquidity requirements through a combination of the
cash flow generated from their daily operation and borrowings.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, Jieyang Company had bank
borrowings, other borrowings, borrowings from a related party and lease liabilities of RMB2,595.0
million, RMB4,540.7 million, RMB5,176.9 million and RMB4,695.5 million, respectively.
Jieyang Company’s weighted average interest rate on capitalised borrowings was 4.17%,
3.98%, 4.16% and nil for the years ended 31 December 2020, 2021 and 2022 and the three months
ended 31 March 2023, respectively.
All of the borrowings of Jieyang Company were denominated in RMB.
The total equity of Jieyang Company as at 31 December 2020, 2021 and 2022 and 31 March
2023 was RMB386.0 million, RMB1,344.2 million, RMB1,810.7 million and RMB1,460.9 million,
respectively.
– III-22 –
Gearing Ratio
As at 31 December 2020, 2021 and 2022 and 31 March 2023, the gearing ratio of Jieyang
The objective of the treasury policies of Jieyang Company is to minimise risks. Jieyang
Charge on Assets
Jieyang Company did not have any secured bank or other borrowings or borrowings from a
related party as at 31 December 2020, 2021 and 2022 and 31 March 2023, respectively.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, Jieyang Company did not have
Jieyang Company is principally operating in the PRC, with all transactions denominated in
RMB. Jieyang Company is not exposed to any significant foreign exchange exposure and carried
Jieyang Company did not have any material acquisition, disposals or significant investment
during the Reporting Period. Jieyang Company has no specific future plan for material investments
or capital assets in the coming year after the Acquisitions. The expected sources of funding for
Jieyang Company’s future plans for material investments or capital assets in the coming year after
the Acquisitions are a combination of internal resources and external financing.
As at 31 December 2020, 2021 and 2022 and 31 March 2023, Jieyang Company had an
average of 30, 40, 44 and 47 employees, respectively.
Jieyang Company recruits, employs, promotes and remunerates its employees based on their
with reference to, among others, the market trend. The staff costs of Jieyang Company for the
years ended 31 December 2020, 2021 and 2022 and the three months ended 31 March 2022 and
2023 were nil, RMB0.3 million, RMB16.3 million, RMB1.5 million and RMB6.2 million,
respectively, which mainly included wages, salaries and bonuses, staff welfare and pension costs,
details of which are set out in note 6 of the accountants’ report of Jieyang Company as set out in
Appendix IIE to this circular.
Prospects
Upon completion of the Acquisitions, Jieyang Company will continue to engage in generation
and sales of electricity in the PRC. Save as disclosed above, Jieyang Company has no specific
future plan for material investments or capital assets in the coming year after the Acquisitions.
– III-23 –
APPENDIX IV UNAUDITED PRO FORMA FINANCIAL
INFORMATION OF THE ENLARGED GROUP
UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE ENLARGED GROUP
Introduction
The following is an illustrative unaudited pro forma consolidated statement of assets and liabilities
of the Group as enlarged as if the Acquisitions (as defined in this circular), had been completed.
The unaudited pro forma financial information of the Enlarged Group (as defined in this circular),
has been prepared based on the audited consolidated statement of financial position of the Group as at
31 December 2022 included in the published annual report of the Company for the year ended 31
December 2022 and other financial information included elsewhere in this circular, after giving effect to
the unaudited pro forma adjustments as described in the accompanying notes.
The unaudited pro forma financial information of the Enlarged Group has been prepared by the
directors of the Company for illustrative purposes only and, because of its hypothetical nature, it may
not give a true picture of the financial position of the Enlarged Group had the Acquisitions been
completed as at 31 December 2022, where applicable, or any future dates. The unaudited pro forma
financial information should be read in conjunction with other financial information included elsewhere
in this circular.
Pro forma
amounts of
Beijing Shanxi Fujian Heilongjiang Jieyang the Enlarged
The Group Company Company Company Company Company Pro forma adjustments Group
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
(Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
(Note 1) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 3) (Note 4) (Note 5)
ASSETS
Non-current assets
Property, plant and equipment 142,306,292 24,844,177 3,853,314 3,302,375 9,007,436 5,972,065 — — — 189,285,659
Right-of-use assets 6,893,878 860,255 82,174 187,805 487,671 78,421 — — — 8,590,204
Prepayments for construction of power
plants 4,951,116 1,131,574 — 38,662 — — — — — 6,121,352
Goodwill 832,388 18,016 — — — — — 469,019 — 1,319,423
Interests in associates 5,455,182 254,007 86,797 27 — — — — — 5,796,013
Interests in joint ventures 1,201,014 — — 216,949 — — — — — 1,417,963
Equity instruments at FVTOCI 4,131,667 — — — 93,439 — — — — 4,225,106
Other intangible assets 8,286,390 137,449 — 280,073 120,418 — — 1,876,075 — 10,700,405
Deferred income tax assets 288,300 59,399 7,513 — 63,426 — — — — 418,638
Restricted deposits 18,711 — — — — — — — — 18,711
Other non-current assets 6,154,281 114,787 356,639 — 375,300 379,875 — — — 7,380,882
180,519,219 27,419,664 4,386,437 4,025,891 10,147,690 6,430,361 — 2,345,094 — 235,274,356
Current assets
Inventories 1,091,344 20,445 1,139 1,186 87,488 — — — — 1,201,602
Accounts receivable 12,634,771 6,044,410 388,426 547,438 591,660 636,885 — — — 20,843,590
Prepayments, deposits and other receivables 6,594,392 883,383 237,901 317,923 314,289 105,310 — — — 8,453,198
Amounts due from related parties 6,098,185 1,506,806 — 3,495 — 682,919 — — — 8,291,405
Tax recoverable 70,738 — — — — — — — — 70,738
Debt instruments at FVTOCI 108,972 — — — — — — — — 108,972
Restricted deposits 59,244 1,513 1,140 — — — — — — 61,897
Cash and cash equivalents 4,228,099 2,956,400 455,767 111,350 241,610 106,682 (571,185) — (67,000) 7,461,723
30,885,745 11,412,957 1,084,373 981,392 1,235,047 1,531,796 (571,185) — (67,000) 46,493,125
Total assets 211,404,964 38,832,621 5,470,810 5,007,283 11,382,737 7,962,157 (571,185) 2,345,094 (67,000) 281,767,481
– IV-1 –
Pro forma
amounts of
Beijing Shanxi Fujian Heilongjiang Jieyang the Enlarged
The Group Company Company Company Company Company Pro forma adjustments Group
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
(Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
(Note 1) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 3) (Note 4) (Note 5)
LIABILITIES
Deferred income 35,625 17 — 4,761 501 — — — — 40,904
Bank borrowings 62,212,186 12,220,209 2,935,345 1,715,989 6,219,721 4,240,591 — 6,263,852 — 95,807,893
Borrowings from related parties 10,415,324 1,964,161 — 28,460 1,256,264 230,000 — — — 13,894,209
Other borrowings 16,811,531 631,932 487,951 596,038 153,119 — — — — 18,680,571
Lease liabilities 3,189,645 382,664 46,453 — 196,407 59,264 — — — 3,874,433
Deferred income tax liabilities 2,275,328 2,609 93,695 12,177 41,776 — — 469,019 — 2,894,604
Provisions for other long-term liabilities 1,866,003 — — — — — — — — 1,866,003
Other non- current liabilities 84,183 — 68,725 — 17,501 — — — — 170,409
96,889,825 15,201,592 3,632,169 2,357,425 7,885,289 4,529,855 — 6,732,871 — 137,229,026
Current liabilities
Accounts and bills payables 2,566,171 30,034 205,192 — 16,504 — — — — 2,817,901
Construction costs payable 11,990,216 1,342,369 — 336,165 239,554 1,317,731 — — — 15,226,035
Other payables and accrued charges 3,607,678 1,065,883 200,446 175,878 67,320 488,000 — — — 5,605,205
Amounts due to related parties 3,412,795 1,947,066 — 5,354 — — — — — 5,365,215
Bank borrowings 16,726,791 5,227,282 168,019 88,987 455,212 164,197 — 4,175,902 — 27,006,390
Borrowings from related parties 4,718,980 206,394 — 250,000 809,077 — — — — 5,984,451
Other borrowings 2,015,000 346,533 8,857 110,654 — — — — — 2,481,044
Lease liabilities 517,007 31,556 1,241 19,543 7,310 1,486 — — — 578,143
Tax payable 370,396 73,723 18,023 5,646 8,530 — — — — 476,318
Contract liabilities — — — — 3,567 — — — — 3,567
45,925,034 10,270,840 601,778 992,227 1,607,074 1,971,414 — 4,175,902 — 65,544,269
Total liabilities 142,814,859 25,472,432 4,233,947 3,349,652 9,492,363 6,501,269 — 10,908,773 — 202,773,295
NET ASSETS 68,590,105 13,360,189 1,236,863 1,657,631 1,890,374 1,460,888 (571,185) (8,563,679) (67,000) 78,994,186
Less: Non-controlling interests 21,621,460 3,818,163 502,664 413,389 459,567 — — 4,515,989 — 31,331,232
46,968,645 9,542,026 734,199 1,244,242 1,430,807 1,460,888 (571,185) (13,079,668) (67,000) 47,662,954
Notes to the Unaudited Pro Forma Financial Information of the Enlarged Group
1. The amounts are extracted from the audited consolidated statement of financial position of the
Group as at 31 December 2022 included in the published annual report of the Company for the
year ended 31 December 2022.
2. The amounts are extracted from the historical financial information of the respective target
companies as of 31 March 2023, which has been audited by respective auditors, as set out in
Appendices IIA to IIE to the Circular.
3. On 10 July 2023, Beijing Company has announced dividend distribution to its shareholders
amounting to approximately RMB503.6 Million. On 13 July 2023, Heilongjiang Company has
announced dividend distribution to its shareholder amounting to approximately RMB40.9 Million.
On 30 June 2023, Shanxi Company has announced dividend distribution to its shareholder
amounting to approximately RMB26.6 Million. All dividends are expected to be paid in cash
before completion of the Acquisitions.
4. The pro forma adjustment represents the effect of considerations for the Acquisitions. Pursuant to
the Acquisition Agreements, the Consideration payable to existing shareholders of the Target
Companies, i.e. SPIC, SPIC Guangdong and CPCEC, shall be RMB10,785 Million, being the fair
value of the equity shares to be transferred, less any dividend distribution to its shareholders.
Based on the dividend distributions announced so far, the adjusted consideration is expected to be
RMB10,440 Million.
– IV-2 –
The Consideration is to be satisfied by the Company in cash. The Company has plans to obtain
long-term acquisition-loan amounting to RMB6,264 Million from Banks in Mainland China. The
Company will utilize available short-term facilities to satisfy the remaining amount of the
Consideration of RMB4,176 Million.
The Group has applied the acquisition method in accordance with HKFRS 3 to account for the
Acquisitions as if the Acquisitions had been completed on 31 December 2022. For the purpose of
the unaudited pro forma financial information of the Enlarged Group, it is assumed the except for
the newly identified other intangible assets related to preferential electricity price arrangements
and the related deferred income tax liabilities, pro forma fair value of the Target Companies’
identifiable assets and liabilities approximate their respective carrying amounts as of 31 March
2023. Below is an illustrative of the preliminary purchase price allocation:
RMB’000
Cash consideration (after dividend distribution adjustment) 10,439,754
Add: Fair value of minority interest in Beijing Company 4,515,989
Less: Fair value of assets and liabilities of the Target Companies (13,079,668)
Other intangible assets identified 1,876,075
Deferred tax liabilities accrued (25%) (469,019)
Add: Fair value of assets and liabilities of the Target Companies 13,079,668
Fair value of net identifiable assets of the Target Companies 14,486,724
Cash consideration (after dividend distribution adjustment) 10,439,754
Add: Fair value of minority interest in Beijing Company 4,515,989
Less: Fair value of net identifiable assets of the Target Companies (14,486,724)
Goodwill identified 469,019
For the purpose of the unaudited pro forma financial information of the Enlarged Group, the
Group’s management has performed an impairment assessment on the provisional other intangible
assets arising from the Acquisitions in accordance with Hong Kong Accounting Standards 36
‘‘Impairment of Assets’’ and concluded that it would have been no impairment of the newly
recognized other intangible assets if the Acquisitions had been completed on 31 December 2022.
The recoverable amount under impairment assessment was derived based on the value-in-used
method.
The actual fair value of net identifiable assets acquired and liabilities assumed from the
Acquisitions at the date of completion may be different from the values used above in the
preparation of the Unaudited Pro Forma Financial Information.
5. The adjustment represents the estimated transaction costs, including legal and professional fees of
approximately RMB67,000,000 that are directly attributable to the Acquisitions and will be settled
by cash.
– IV-3 –
INDEPENDENT REPORTING ACCOUNTANTS’ ASSURANCE REPORT ON THE

COMPILATION OF UNAUDITED PRO FORMA FINANCIAL INFORMATION
The following is the text of a report received from the reporting accountants, Ernst & Young,
Certified Public Accountants Hong Kong, in respect of the Group’s unaudited pro forma financial
information for the purpose of incorporation in this circular.
To the Directors of China Power International Development Limited
We have completed our assurance engagement to report on the compilation of unaudited pro forma
financial information of China Power International Development Limited (the ‘‘Company’’) and its
subsidiaries (hereinafter collectively referred to as the ‘‘Group’’) by the directors of the Company (the
‘‘Directors’’) for illustrative purposes only. The unaudited pro forma financial information consists of
the unaudited pro forma consolidated statement of assets and liabilities as at 31 December 2022 and
related notes as set out in Appendix IV to the circular issued by the Company dated 18 August 2023 (the
‘‘Circular’’). The applicable criteria on the basis of which the Directors have compiled the unaudited pro
forma financial information are described in Appendix IV to the Circular.
The unaudited pro forma financial information has been compiled by the Directors to illustrate the
impact of the proposed acquisition of equity interest in the Target Companies on the Group’s assets and
liabilities as at 31 December 2022 as if the Proposed Acquisition had taken place on 31 December 2022.
As part of this process, information about the Group’s financial position has been extracted by the
Directors from the Group’s consolidated financial statements for the year ended 31 December 2022, on
which an audit report has been published.
Directors’ Responsibility for the Unaudited Pro Forma Financial Information
The Directors are responsible for compiling the unaudited pro forma financial information in
accordance with paragraph 4.29 of the Rules Governing the Listing of Securities on The Stock Exchange
of Hong Kong Limited (the ‘‘Listing Rules’’) and with reference to Accounting Guideline (‘‘AG’’) 7
Preparation of Pro Forma Financial Information for Inclusion in Investment Circulars issued by the
Hong Kong Institute of Certified Public Accountants (the ‘‘HKICPA’’).
Our Independence and Quality Control
We have complied with the independence and other ethical requirements of the Code of Ethics for
Professional Accountants issued by the HKICPA, which is founded on fundamental principles of
integrity, objectivity, professional competence and due care, confidentiality and professional behavior.
Our firm applies Hong Kong Standard on Quality Management 1 Quality Management for Firms
that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services
Engagements which requires the firm to design, implement and operate a system of quality management
including policies or procedures regarding compliance with ethical requirements, professional standards
and applicable legal and regulatory requirements.
– IV-4 –
Reporting Accountants’ responsibilities
Our responsibility is to express an opinion as required by paragraph 4.29(7) of the Listing Rules on
the unaudited pro forma financial information and to report our opinion to you. We do not accept any
responsibility for any reports previously given by us on any financial information used in the
compilation of the unaudited pro forma financial information beyond that owed to those to whom those
reports were addressed by us at the dates of their issue.
We conducted our engagement in accordance with Hong Kong Standard on Assurance

Engagements 3420 Assurance Engagements to Report on the Compilation of Pro Forma Financial
Information Included in a Prospectus issued by the HKICPA. This standard requires that the reporting
accountants plan and perform procedures to obtain reasonable assurance about whether the Directors
have compiled, in all material respects, the unaudited pro forma financial information in accordance with
paragraph 4.29 of the Listing Rules and with reference to AG 7 issued by the HKICPA.
For purposes of this engagement, we are not responsible for updating or reissuing any reports or
opinions on any historical financial information used in compiling the unaudited pro forma financial
information, nor have we, in the course of this engagement, performed an audit or review of the
financial information used in compiling the unaudited pro forma financial information.
The purpose of unaudited pro forma financial information included in the Circular is solely to
illustrate the impact of a significant event or transaction on unadjusted financial information of the
Group as if the event had occurred or the transaction had been undertaken at an earlier date selected for
purposes of the illustration. Accordingly, we do not provide any assurance that the actual outcome of the
event or transaction at 31 December 2022 would have been as presented.
A reasonable assurance engagement to report on whether the unaudited pro forma financial
information has been compiled, in all material respects, on the basis of the applicable criteria involves
performing procedures to assess whether the applicable criteria used by the Directors in the compilation
of the unaudited pro forma financial information provide a reasonable basis for presenting the significant
effects directly attributable to the event or transaction, and to obtain sufficient appropriate evidence
about whether:
. The related pro forma adjustments give appropriate effect to those criteria; and
. The unaudited pro forma financial information reflects the proper application of those
adjustments to the unadjusted financial information.
The procedures selected depend on the reporting accountants’ judgment, having regard to the
reporting accountants’ understanding of the nature of the Group, the event or transaction in respect of
which the unaudited pro forma financial information has been compiled, and other relevant engagement
circumstances. The engagement also involves evaluating the overall presentation of the unaudited pro
forma financial information.
our opinion.
– IV-5 –
Opinion
In our opinion:
(a) the unaudited pro forma financial information has been properly compiled on the basis stated;
(b) such basis is consistent with the accounting policies of the Group; and
(c) the adjustments are appropriate for the purpose of the unaudited pro forma financial
information as disclosed pursuant to paragraph 4.29(1) of the Listing Rules.
Ernst & Young

Hong Kong
18 August 2023
– IV-6 –
APPENDIX V SUMMARY OF ASSET APPRAISAL REPORTS
Set out below is a summary of the Asset Appraisal Reports containing the asset appraisals of the
Target Companies. For the purpose of complying with Rule 14.62 of the Listing Rules, the principal
assumptions of the income approach valuation with discounted cash flow method (which constituted
profit forecast under Rule 14.61 of the Listing Rules) set out in the Asset Appraisal Reports in respect of
the Target Companies are also set out below.
VALUATION ASSUMPTIONS
General Assumptions
(I) General assumptions applicable to all companies
1. Transaction assumption: It is assumed that all assets to be appraised are in the course of
transaction, and the appraiser carries out the valuation by benchmarking to simulated
market based on the conditions for transaction of the assets to be appraised.
2. Open market assumption: An open market assumption is an assumption made on the

conditions of the market where the assets are proposed to enter and how the assets will
be affected under such market conditions. An open market, which has been fully
developed with comprehensive market conditions, refers to a competitive market with
willing buyers and sellers acting voluntarily and rationally on arm’s length basis, having
sufficient opportunities and time to obtain market information and under no compulsion
or restrictions to buy or sell.
3. Assumption of continuous use: The assumption of continuous use is an assumption

made on the conditions of the market where the assets are proposed to enter and the
state of the assets under such market conditions. It is first assumed that the assets to be
appraised are in use, and it is further assumed that the assets that are in use will be used
continuously. Under the assumption of continuous use, no consideration is given to the
conversion of the use of the assets or utilization of the assets under the best condition.
Thus, the valuation results are subject to a restricted scope of applicability.
Specific Assumptions
(I) Specific assumptions applicable to all companies
1. There are no material changes in the existing relevant national laws, regulations and
policies, or in the national macroeconomic conditions. There are no material changes in
the political, economic and social environment of the regions where the parties to this
transaction are located. There are no human factors or other force majeure factors that
may have a material adverse impact on the enterprise.
2. Unless otherwise stated, it is assumed that the company is in full compliance with all
relevant laws and regulations.
3. It is assumed that the accounting policies to be adopted by the company in the future
are basically consistent with those adopted in the preparation of this report in material
aspects.
4. The basic information and financial information provided by the principal and the
appraised entity are true, accurate and complete.
5. There are no material changes in, amongst others, interest rates, exchange rates,
taxation bases, tax rates and policy-based levies.
– V-1 –
6. It is assumed that the operator of the company will be responsible and the management
of the company will have the capability to perform its duties.
7. It is assumed that the business scope and mode of the company will be in line with the
current direction on the basis of the existing management approach and standard.
8. The principal businesses, revenue and cost composition and cost controls of the new
energy project companies directly or indirectly held by the appraised entity during the
future operating period will be in line with the management’s expectations without
material changes.
9. It is assumed that the enterprise will operate as a going concern within the life span of
the power station in view of the actual condition of the assets as at the Appraisal
Benchmark Date.
10. Each asset under this appraisal is appraised based on the actual inventory as at the
Appraisal Benchmark Date, and the current market price of the relevant assets is based
on the effective domestic prices as at the Appraisal Benchmark Date.
11. It is assumed that the projected annual sales revenue, costs and expenses of the
enterprise will be generated evenly.
12. It is assumed that the onshore wind power enterprise will determine the forecast period
based on the approved period and design life of the project, and the subsidy period and
operation term of power generation are 20 years and 20 years, respectively.
13. It is assumed that the photovoltaic power enterprise will determine the forecast period
based on the approved period and design life of the project, and the subsidy period and
operation term of power generation are 20 years and 25 years, respectively.
14. It is assumed that the residual value of fixed assets and intangible assets of the new
energy power stations will be recovered at their carrying values as at the end of the
operation period.
15. It is assumed that the calculation of compensation for ancillary services and grid-
connected operation assessment of each power station under the appraised entity will
remain consistent with those in the historical years.
16. It is assumed that the benchmark tariff and subsidized tariff implemented by the local
government of the region where the appraised entity is located as at the benchmark date
will remain unchanged during the forecast period. It is assumed that the policies for
power generation and on-grid electricity in the region where the power station is located
in future years will remain consistent with those implemented as at the benchmark date.
17. According to Article 1 of the ‘‘Announcement on Extension of Enterprise Income Tax

Policy for the Development of the Western Regions (Announcement [2020] No. 23 of
the Ministry of Finance) 《關於延續西部大開發企業所得稅政策的公告》
( (財政部公告
2020年第23號))’’ issued by the Ministry of Finance (MOF), the State Administration of
Taxation (SAT) and the National Development and Reform Commission (NDRC),
‘‘from 1 January 2021 to 31 December 2030, enterprise income tax shall be levied at a
reduced rate of 15% on enterprises engaging in the encouraged industries and
established in the Western Regions’’. According to the ‘‘Announcement on Preferential
Income Tax Policies for Small and Micro Enterprises and Individual Businesses
(Announcement [2023] No. 6 of the MOF and the SAT) 《關於小微企業和個體工商戶
(
– V-2 –
所得稅優惠政策的公告》( 財政部稅務總局公告 2 0 2 3 年第 6 號 ) ) ’’ a n d t h e
‘‘Announcement on Further Implementing the Preferential Income Tax Policies for
Small and Micro Enterprises (Announcement [2022] No. 13 of the MOF and the SAT)
《關於進一步實施小微企業所得稅優惠政策的公告》(財政部稅務總局公告2022年第13
號)’’, the portion of the annual taxable income of small and micro enterprises not
exceeding RMB3 million can enjoy 25% taxable income deduction and are subject to
corporate income tax at a rate of 20% until 31 December 2024. Considering that the
Enterprise Income Tax Policy for the Development of the Western Regions and the
Preferential Income Tax Policies for Small and Micro Enterprises have been extended
for several times, this appraisal assumes that the above policies will continue
throughout the forecast period.
18. According to the relevant provisions of the ‘‘Notice of the Ministry of Finance and the
State Administration of Taxation on the Value-added Tax Policy for Wind Power
Generation (Cai Shui [2015] No. 74) 《財政部、國家稅務總局關於風力發電增值稅政
(
策的通知》(財稅[2015]74號))’’, ‘‘starting from 1 July 2015, taxpayer who sell self-
produced power products using wind power will be subject to the policy of immediate
50% value-added tax (VAT) refund upon collection’’. The impact of this policy has
been considered in this appraisal and it is assumed that this policy will continue until
the end of the operation period of the project.
19. This appraisal assumes that the appraised entity and its subsidiaries will not develop or
invest in any new projects based of the existing investment projects in future years, and
that the existing projects will exit at maturity and cease to operate upon the expiry of
the operation period of the last project in which it has invested. This appraisal assumes
that no further costs in relation to the development and investment of new projects will
be incurred in future years.
20. In the appraisal under the market approach, both the comparable companies and the
appraised entity are able to continue their operations as a going concern in accordance
with the business model, business structure and capital structure publicly disclosed at
the time of the transaction.
21. In the appraisal under the market approach, the information disclosed by the comparable
companies are true, accurate and complete, and there are no false statements,
misstatements or material omissions that may affect the value judgment.
22. In the appraisal under the market approach, the appraisers select the comparison
dimensions and indicators only based on the relevant information of the comparable
companies publicly disclosed, without consideration to the impact of other non-public
matters on the value of the appraised entity.
23. There are no other force majeure and unforeseeable factors that may have a material
adverse impact on the enterprise.
(II) Specific assumptions applicable to Heilongjiang Company, Shanxi Company and Beijing
Company
1. In forecasting the collection of subsidies for renewable energy of the power stations, it
is assumed that the outstanding subsidy receivables as at the Appraisal Benchmark Date
will be received in an evenly distributed manner based on the actual default cycle
experienced by the power stations. The subsidies will be received at a faster pace in
future years and the collection cycle of subsidies for renewable energy in 2030 and
beyond will be 1 year.
– V-3 –
Assumptions applicable to individual companies only
(I) Specific assumptions applicable to Fujian Company only
1. If the collection cycle of national subsidies for new energy projects directly or
indirectly held by the appraised entity is about 1 year as at the Appraisal Benchmark
Date (i.e. the national subsidies before March 2022 have been received as at the
benchmark date, 31 March 2023), it is assumed that the collection cycle of national
subsidies for 2023 to 2029 shall be 1 year (the national subsidies for 2022 will be
received in 2023, the national subsidies for 2023 will be received in 2024, and so on); if
the collection cycle of national subsidies as at the Appraisal Benchmark Date is about 2
years (i.e. the national subsidies before March 2021 have been received as at the
benchmark date), it is assumed that the collection cycle of national subsidies for 2023
to 2029 will be 2 years (the national subsidies for 2021 will be received in 2023, the
national subsidies for 2022 will be received in 2024, and so on); if the collection cycle
of national subsidies as at the Appraisal Benchmark Date is about 3 years (i.e. the
national subsidies before March 2020 have been received as at the benchmark date), it
is assumed that the national subsidies for 2020 and 2021 will be received in 2023 and
the collection cycle of national subsidies for 2024 to 2029 will be 2 years (the national
subsidies for 2022 will be received in 2024, the national subsidies for 2023 will be
received in 2025, and so on); and it is assumed that the accounting period of national
subsidies for all projects in 2030 and beyond will be 1 year.
(II) Specific assumptions applicable to Jieyang Company only
1. Assuming that the company will be able to maintain normal operations under the
current business model, the valid period of the Electricity Business License can be
extended normally to 25 years, which is the life cycle of the offshore wind power
projects.
2. This appraisal assumes that the provision to be made by the company for safety
production costs in future years will be expensed in full by the end of the life cycle of
the project.
3. This appraisal assumes that the reasonable subsidy utilization hours of the entire life
cycle of the offshore wind power project of the appraised entity are 52,000 hours.
4. The appraised entity has not received any national subsidy for new energy power
generation since it was connected to the power grid in July 2021. It is assumed that the
collection period of national subsidy for the appraised entity is 2 years for 2030 and
before, and 1 year after 2030.
(III) Valuation assumptions under the income approach applicable to Heilongjiang Company only
1. According to the ‘‘Electricity Business License of the People’s Republic of China 《中

(
華人民共和國電力業務許可證》)’’ (No. 1020921–01036) issued by the Northeast China
Energy Regulatory Bureau of the NEA, the license is valid from 30 June 2021 to 29
June 2041. It is assumed that the forecast period of the biomass heat and electricity
cogeneration project will be determined based on the approved term of the electricity
business, and the terms of both heat supply and electricity supply are 20 years.
– V-4 –
2. It is assumed that the policy of VAT exemption for revenue from heating fees derived
from heat supply services provided by heat supply enterprises to individual residents
and the policy of exemption from real estate tax and urban land use tax for plants and
land used for heat supply services provided to residents that are applicable to heat
supply enterprises will continue.
3. It is assumed that the prices of heat supply implemented by the local government of the
appraised entity will remain unchanged as that of the Appraisal Benchmark Date during
the forecast period.
4. It is assumed that the heat supply demonstration project under construction will be
completed as planned and provide heat supply services as scheduled.
5. It is assumed that the entrustment operation cooperation agreements entered into by and
between the appraised entity and Beidahuang Group Heilongjiang 853 Farm Co., Ltd.*
(北大荒集團黑龍江八五三農場有限公司) and Beidahuang Group Heilongjiang Yanjun
Farm Co., Ltd* (北大荒集團黑龍江延軍農場), respectively can be renewed upon expiry
and the appraised entity can continue to receive entrustment fees as agreed under the
contracts.
6. It is assumed that Daqing Lvrui Solar Power Generation Co., Ltd.* (大慶綠銳太陽能發
電有限公司) can receive 90% rebate for land use tax during the forecast period.
7. It is assumed that Liaoning Zhitong Dongguan Photovoltaic Power Co., Ltd.* (遼寧直通
東關光伏電力有限公司), Liaoning Huayu Sanxin Photovoltaic Power Co., Ltd.* (遼寧
華宇三鑫光伏電力有限公司) and Liaoning Sanyi Photovoltaic Power Co., Ltd.* (遼寧
三義光伏電力有限公司) are eligible to apply for the implementation of the standards
regarding subsidy amount and subsidized tariff for Class II resource areas under the ‘‘Fa
Gai Neng Yuan Circular [2018] No. 1459’’.
8. It is assumed that the appraised entity will not make any deductions for the clean heat
supply transactions and fund pools during the forecast period.
(IV) Valuation assumptions under the income approach applicable to Shanxi Company only
1. As the photovoltaic power station of Datong Yunzhou Longji Lvneng Clean Energy Co.,
Ltd.* (大同市雲州區隆基綠能清潔能源有限公司) with an installed capacity of 7MW
and the photovoltaic power station of Guangling Longxing Lvneng Clean Energy Co.,
Ltd.* (廣靈縣隆興綠能清潔能源有限公司) with an installed capacity of 7.07MW have
been included in the second batch of subsidy list of renewable energy power generation
projects for poverty alleviation, it is assumed that the subsidized tariffs for renewable
energy in relation to poverty alleviation capacity will be deferred for 3 months.
2. It is assumed that SPIC Shouyang Clean Energy Co., Ltd.* (國家電投集團壽陽清潔能

源有限公司), Pianguan Intelligent Energy Wind Power Co., Ltd.* (偏關智慧能源風力
發電有限公司) and the photovoltaic power station of Datong Yunzhou Longji Lvneng
Clean Energy Co., Ltd.* (大同市雲州區隆基綠能清潔能源有限公司) with an installed
capacity of 23MW, and the photovoltaic power station of Guangling Longxing Lvneng
Clean Energy Co., Ltd.* (廣靈縣隆興綠能清潔能源有限公司) with an installed capacity
of 22.97MW will be included in the subsidy list of renewable energy generation
projects in 2023, and the subsidized tariff will be received starting from 2024.
– V-5 –
3. It is assumed that the outstanding subsidy receivables of the rooftop photovoltaic power
station of Northern Machinery* (北方機械)/the rooftop photovoltaic power station of
Huyan Water Plant* (呼延水廠), the photovoltaic power station of Datong Yunzhou
Longji Lvneng Clean Energy Co., Ltd.* (大同市雲州區隆基綠能清潔能源有限公司)
with a non-poverty alleviation installed capacity of 23MW, the photovoltaic power
station of Guangling Longxing Lvneng Clean Energy Co., Ltd.* (廣靈縣隆興綠能清潔
能源有限公司) with a non-poverty alleviation installed capacity of 22.93MW, SPIC
Shouyang Clean Energy Co., Ltd.* (國家電投集團壽陽清潔能源有限公司), Pianguan
Intelligent Energy Wind Power Co., Ltd.* (偏關智慧能源風力發電有限公司), Datang
Quanzhou New Energy Co. Ltd.* (大唐全州新能源有限公司)、Datang Yongzhou New
Energy Co., Ltd.* (大唐永州新能源有限公司) and Shanxi Yulong Group Youyu
Niuxinbao Wind Power Co., Ltd.* (山西玉龍集團右玉牛心堡風力發電有限公司) will
be received in an evenly distributed manner based on the actual default cycle of the
power stations. The subsidies will be received at a faster pace in future years and the
collection cycle of subsidies for renewable energy in 2030 and beyond will be 1 year.
(V) Valuation assumptions under the income approach applicable to Beijing Company only
1. High-and-New-Tech Enterprises accredited in accordance with the ‘‘Administrative

Measures for the Accreditation of High-and-New-Tech Enterprises’’ 《高新技術企業認
(
定管理辦法》) and the ‘‘High-and-New-Tech Areas with Key State Support’’ 《國家重點 (
支持的高新技術領域》) jointly promulgated by the Ministry of Science and Technology
(MOST), the MOF and the SAT in April 2008 are eligible to apply for a preferential tax
policy to enjoy a reduced enterprise income tax rate of 15% pursuant to the
requirements of, amongst others, the new Enterprise Income Tax Law 《企業所得稅 (
法》) and its Implementation Regulations 《實施條例》
( ) effective on 1 January 2008, the
Law of the People’s Republic of China on the Administration of Tax Collection 《中華
(
人民共和國稅收徵收管理法》) (hereinafter referred to as the ‘‘Tax Collection Law’’)
and the Implementation Rules for the Law of the People’s Republic of China on the
Administration of Tax Collection 《中華人民共和國稅收徵收管理法實施細則》
( )
(hereinafter referred to as the ‘‘Implementation Rules’’). As of the Appraisal
Benchmark Date, Tianjin Zhongdian Shengfa Photovoltaic Power Generation Co., Ltd.*
(天津中電晟發光伏發電有限公司) and SPIC Fanshi Yunwuyu Wind Power Co., Ltd.*
(國家電投集團繁峙雲霧峪風電有限公司), both being subsidiaries of the appraised
entity, have obtained the certificates of High-and-New-Tech Enterprises. This appraisal
assumes that the income tax rate of the above companies is 15% up to the end of the
operation period.
2. It is assumed that Beijing Company, as the platform management company, and its 11
Tier-1 subsidiaries will no longer receive management service fees from the new energy
project operating companies in future years.
In accordance with the requirements of asset appraisal, it is determined that these

assumptions are valid on the Appraisal Benchmark Date. When the economic environment changes
greatly in the future, no liability will be assumed for deriving different appraisal conclusions due
to changes of these assumptions.
– V-6 –
VALUATION METHODOLOGIES
Selection of valuation approach
(I) Heilongjiang Company, Shanxi Company, Beijing Company and Fujian Company
. The income approach is built on the theory of expected utility in economics, which
means that for investors, the value of an enterprise lies in the income that the enterprise
is expected to generate in the future. Although the income approach does not directly
use reference available in the real market to demonstrate the present fair market value
of the appraised target, it assesses an asset by its expected profitability, which is the
essential basis for determining the present fair market value of the asset. As such, it can
completely reflect the overall value of an enterprise and its valuation conclusion is more
reliable and convincing. From the perspective of the applicable conditions of the income
approach, since the enterprise is profitable in its own right and the management of the
appraised entity has provided the profit forecast data for the future years, according to
the historical operating data of the enterprise and the internal and external operating
environment, the future level of profit of the enterprise can be reasonably forecasted. In
addition, the risk of future income can be reasonably quantified. Therefore, the income
approach is applicable to this appraisal.
. The market approach refers to the valuation approach that determines the value of the
appraised target by comparing the appraised target with comparable listed companies or
comparable transactions. The underlying premise of the market approach is that there
must be a sufficiently public and active trading market for the subject assets and the
comparable companies. As the appraised entity is principally engaged in the operation
of wind power stations and photovoltaic power stations, there are similar comparable
listed companies or comparable transactions in the open market. Therefore, the market
approach is applicable for conducting the appraisal of the appraised entity.
. In summary, the income approach and market approach have been adopted for this
appraisal. As a limited number of subsidiaries of the appraised entity are pure platform
companies that do not generate incomes, costs and expenses, or are projects either at a
preliminary stage that have not commenced yet or under construction and thus have
uncertainty over their future incomes, these subsidiaries or projects are not qualified for
adopting the income approach for valuation. However, since they are able to provide
comprehensive financial information, they are qualified for adopting the asset-based
approach for valuation. As such, the appraisal of these limited number of subsidiaries
were carried out by using the asset-based approach.
(II) Jieyang Company
. Based on our understanding of the enterprise nature, asset scale, historical operating
conditions, predictability of future income, adequacy of the valuation information
obtained of the appraised entity, as well as the research and analysis of the relevant
industries and markets in which it is based, we believe that the company is expected to
possess the ability to continue as a going concern and generate profits in the future, and
is therefore qualified to adopt the income approach for valuation.
. The market approach refers to the valuation approach that determines the value of the
appraised target by comparing the appraised target with comparable listed companies or
comparable transactions. Considering that Jieyang Company is an offshore wind power
project company with a relatively short operation period after being connected to the
power grid, and given the limited number of transactions of similar offshore wind
– V-7 –
power project within the surrounding areas of the appraised entity in the market and the
inadequate information disclosure in relation thereof, the market approach is therefore
not applicable to this appraisal.
. Despite the fact that it has only been established for a relatively short period of time,
the appraised enterprise has comprehensive financial information and asset management
data available. Besides, as an offshore wind power project with a relatively short
operation period after being connected to the power grid, it has a relatively wide range
of sources of data and information in respect of asset reacquisition costs. Meanwhile, in
combination with the purpose of this appraisal, in order to enable the investors to have
a more objective understanding of the replacement investment costs of the appraised
entity, given that the asset-based approach has a stronger objective basis for its
valuation results, the asset-based approach is therefore applicable to this appraisal.
. Based on the above analysis, the income approach and the asset-based approach have
been adopted for this appraisal. The final appraised value will be determined by
comparing the valuation conclusions derived by the two valuation approaches and
analyzing the reasons for the differences arising therefrom.
Determination of valuation approach
(I) Heilongjiang Company, Beijing Company, Shanxi Company and Fujian Company
. According to the future development plan of the appraised entity, it is expected that the
development planning for electricity business will outperform its current operating
performance. The future power generation forecast provided by the appraised entity can
reflect the value of the enterprise based on the income approach. As such, the valuation
conclusion sufficiently covers the value of the entire shareholders’ equity of the
appraised entity. Although the appraisers make sufficient and necessary adjustments to
comparable listed companies when conducting the appraisal under the market approach,
there are still uncertainties such as the fact that the appraisers are uncertain about the
intangible assets or contingent liabilities that are unique to comparable listed companies
or factors that are difficult to adjust, leading to the risk of a larger divergence between
the valuation results and the actual value of the enterprise. As a result, this valuation
adopted the valuation results based on the income approach as the final valuation
conclusion.
. Asset-based approach is adopted mainly based on the explicit assets and liabilities
stated on the financial statements of an enterprise, which may not fully reflect the value
of intangible assets owned by an enterprise that contribute to the earnings of a company
such as power generation licenses, wind resources and management team, resulting in a
material difference in valuation results between asset-based approach and income
approach.
. Income approach is a valuation method to determine asset values by discounting the

future income of an enterprise to the present value. The valuation technique of the
income approach better represents the ‘‘expected principle’’ of assets. The present
values of its future income can reflect the contribution of various resources occupied by
the enterprise to the enterprise value, which enable the valuation process to fully reflect
the profitability and growth ability of the enterprise and reflect the various tangible and
intangible assets owned by the enterprise and its profitability in the valuation results,
resulting in a fairer valuation result. Meanwhile, from the perspective of investment, the
– V-8 –
value of an enterprise is determined by the profitability of the enterprise. The return on

equity investment is realized by obtaining equity compensation, and the equity
compensation is the basis of equity pricing.
. Based on the above reasons, we are of the view that the valuation results based on the
income approach are more in line with the value implication of the appraised target
corresponding to this economic activity. As a result, this report adopted the valuation
results based on the income approach of RMB1,974.0167 million as the final valuation
conclusion.
KEY VALUATION INPUTS
The income approach appraisal adopts the discounted cash flow method, and the cash flow selected
is the free cash flow of the enterprise, so as to indirectly obtain the value of the entire shareholders’
equity through the appraisal of the enterprise value as a whole.
The total shareholders’ equity under this appraisal is calculated by adding together the discounted
value of the enterprise’s total operating assets, surplus assets and non-operating assets, less interest-
bearing liabilities. The value of the enterprise’s total operating assets is based on the total net free cash
flow of the enterprise for a number of years in the future, discounted by an appropriate discount rate. Set
out below are the key valuation inputs:
Determination of projected income
The free cash flow of the enterprise is used in this appraisal as a quantitative indicator of expected
earnings of the enterprise. The formula is as follows:
The free cash flow of the enterprise = net income after tax + depreciation and amortization +
interest expense x (1 – tax rate T) – capital expenditure – change in working capital.
Basis of the projections on key financial figures of the Target Companies
(I) Beijing Company, Shanxi Company, Heilongjiang Company and Fujian Company
A. Forecast of operating income
Operating income is mainly attributable to the income from power generation, which is
forecasted based on the following factors.
1. Forecast of future annual power generation
Future annual power generation = power generation utilization hours × (1 –

deterioration rate) × installed capacity of the power plants.
This assessment determines the power generation utilization hours of the appraised
entity in the future years by analysing the historical annual data with reference to feasibility
studies and due diligence conducted, and the budget data of the appraised entity for 2023.
The deterioration rate of photovoltaic power plants is forecasted with reference to

feasibility studies and due diligence conducted, and the power generation efficiency of the
appraised entity.
– V-9 –
The range of power generation utilization hours for power plants under Heilongjiang
Company, Beijing Company, Shanxi Company and Fujian Company are as follows:
Target Company Range of power generation utilization hours
Photovoltaic power 986–1,701
Wind power 3,000–3,612
Beijing Company
Photovoltaic power 1,300–1,876
Shanxi Company
Photovoltaic power 1,443–1,605
Fujian Company
Photovoltaic power 902–1,608
Waste power 8,000
2. Forecast of unit price of electricity
Based on the tariff documents implemented by the appraised entity, the forecast is made
using the currently implemented tariff level.
The range of unit price of electricity for power plants under Heilongjiang Company,
Beijing Company, Shanxi Company and Fujian Company are as follows:
Range of unit price of electricity

Target Company (RMB/kWh)
Photovoltaic power 0.31–1.10
Wind power 0.31–0.52
Beijing Company
Shanxi Company
Fujian Company
Waste power 0.606
According to Caijian [2020] No. 4 Guidelines on the Stable Development of Non-Water

Renewable Energy Generation (關於促進非水可再生能源發電健康發展的若干意見) and
Caijian [2020] No. 426 Supplementary Notice on Matters Relating to Guidelines on the
Stable Development of Non-Water Renewable Energy Generation (關於促進非水可再生能源
– V-10 –
發電健康發展的若干意見有關事項的補充通知), the amount of national subsidies for

renewable energy power generation projects is approved based on the number of reasonable
utilization hours. The reasonable utilization hours for type one, type two, type three, and type
four wind power projects for each of its entire life cycle are 48,000 hours, 44,000 hours,
40,000 hours and 36,000 hours, respectively. The reasonable utilization hours for type one,
type two and type three photovoltaic power generation projects are 32,000, 26,000 and
22,000 hours, respectively.
Subsidised electricity volume for the entire project life cycle = project capacity ×
reasonable utilization hours of entire project life cycle. Project capacity is based on the
capacity determined at the time of project approval (filing). Should the actual capacity of the
project be lower than the approved (filed) capacity, the actual capacity shall prevail.
Projects included in the scope of the renewable energy power generation subsidy list in
accordance with the Caijian [2020] No. 5 Measures for Administration of Subsidy Funds for
Tariff Premium of Renewable Energy (可再生能源電價附加資金管理辦法) will no longer be
entitled to the national subsidies for the portion of the power generated in excess of the
subsidised electricity volume for the entire project life cycle. Wind power and photovoltaic
power generation projects will no longer enjoy the national subsidies after 20 years from the
date of grid connection, and biomass power generation projects will no longer enjoy the
national subsidies after 15 years from the date of grid connection, regardless of whether the
project reaches the subsidised electricity volume.
B. Forecast of operating costs
Operating costs mainly consist of depreciation and amortization, repair and material costs,
entrusted operation fees, financial service fees, land lease charges, employee remuneration and
other expenses.
1. Depreciation and amortization: the forecast is based on the original book value of fixed
assets and intangible assets of the appraised entity which are depreciated and amortized
under operating costs as at the Appraisal Benchmark Date, the amount of depreciation
and amortization to be provided for in accordance with the current accounting policies
of each appraised entity.
2. Repair and material costs: the forecast is made with reference to historical data during
the warranty period, and with reference to the parameters of SPIC’s other new energy
investment and acquisition projects after the warranty period.
3. Entrusted operation fees and financial service fees: entrusted operation fee is forecasted
based on the entrusted operation contract, and if no contract has been signed, based on
feasibility studies (in respect of Fujian Company, entrusted operation fee was measured
based on its parent company’s apportionment plan for entrusted operation fees to its
subsidiaries, whereas the financial service fee was measured based on Fujian Company’s
apportionment plan for the financial service fee of its subsidiaries).
4. Land lease charges: the forecast is made based on the amount of lease contracts
currently executed by each appraised entity.
5. Employee compensation: the forecast is made on the assumption that stabilization will
be reached after an annual increase of 2% for four consecutive years.
6. Other expenses: determined after analysing the historical annual expense levels of each
appraised entity and the amount of the financial budget for 2023.
– V-11 –
C. Forecast of taxes and surcharges
Taxes and surcharges include urban construction tax of 5% or 7%, education surcharge of
3%, local education surcharge of 2%, property tax of 1.2%, land tax of RMB0.2 per square meter
to RMB10 per square meter, stamp duty of 0.3% to 1% and others. Forecasts are based on the
assumption that tax rate applicable to each appraised entity as at the Appraisal Benchmark Date
will remain unchanged.
D. Forecast of management expenses
None of the project companies of the Target Companies incur management expenses (only
the parent company or platform company which perform management functions incur management
expenses). The management expenses include depreciation and amortization, employee
remuneration, insurance premiums, lease expenses, information technology expenses, hospitality
expenses, party organization working expenses and others.
1. Depreciation and amortization: mainly depreciation of fixed assets and amortization of

intangible assets. This valuation forecasts depreciation in management expenses based
on the original book value of various types of fixed assets and intangible assets of the
enterprises which are depreciated and amortized under management expenses as at the
Appraisal Benchmark Date, and the amount of depreciation that should be accrued over
the period of earnings in accordance with the current accounting policies of the
respective companies.
2. Employee remuneration: projections are based on a 2% increase in remuneration per

year until 2026 with reference to actual remuneration in 2022 and assumed to remain
unchanged from 2027 onward.
3. Insurance premiums: based on insurance contracts executed as at the Appraisal

Benchmark Date.
4. Lease payments: based on the amount of lease contracts signed.
5. Other expenses: based on historical annual levels.
E. Forecast of finance costs
Finance costs are mainly interest expenses on borrowings. As the appraisal adopts the
corporate free cash flow where R = profit before interest and after tax + depreciation and
amortization – capital expenditure – changes in net working capital, no prediction of interest
expenses is made.
F. Forecast of other income
According to the relevant provisions of the ‘‘Notice of the Ministry of Finance and the State
Administration of Taxation on the Value-added Tax Policy for Wind Power Generation (Cai Shui
[2015] No. 74) 《財政部、國家稅務總局關於風力發電增值稅政策的通知》
( (財稅[2015]74號))’’,
‘‘starting from 1 July 2015, taxpayer who sell self-produced power products using wind power will
be subject to the policy of immediate 50% value-added tax (VAT) refund upon collection’’. The
impact of this policy has been considered in this appraisal and it is assumed that this policy will
continue until the end of the operation period of the project.
– V-12 –
G. Forecast of corporate income tax
Forecast is made based on income tax policies and corresponding tax rates applicable to the
appraised entity. The main tax incentives are:
1. The income derived by an enterprise from investment and operation of projects such as
ports and terminals, airports, railroads, highways, urban public transportation, electric
power and water conservancy projects shall be fully exempt from enterprise income tax
for the first to the third year (0% tax rate), and shall be payable in half from the fourth
to the sixth year (12.5% tax rate), after which the applicable tax rate will be forecast at
25%.
2. According to ‘‘Announcement on Extension of Enterprise Income Tax Policy for the

Development of the Western Regions (Announcement [2020] No. 23 of the Ministry of
Finance) 《關於延續西部大開發企業所得稅政策的公告》
( (財政部公告2020年第23號))’’
issued by the Ministry of Finance (MOF), the State Administration of Taxation (SAT)
and the National Development and Reform Commission (NDRC), ‘‘from 1 January 2021
to 31 December 2030, enterprise income tax shall be levied at a reduced rate of 15% on
enterprises engaging in the encouraged industries and established in the Western
Regions’’. According to the ‘‘Announcement on Preferential Income Tax Policies for
Small and Micro Enterprises and Individual Businesses (Announcement [2023] No. 6 of
the MOF and the SAT) 《關於小微企業和個體工商戶所得稅優惠政策的公告》
( (財政部
稅務總局公告2023年第6號))’’ and the ‘‘Announcement on Further Implementing the
Preferential Income Tax Policies for Small and Micro Enterprises (Announcement
[2022] No. 13 of the MOF and the SAT)《關於進一步實施小微企業所得稅優惠政策的
公告》(財政部稅務總局公告2022年第13號)’’, the portion of the annual taxable income
of small and micro enterprises not exceeding RMB3 million can enjoy 25% taxable
income deduction and are subject to corporate income tax at a rate of 20% until 31
December 2024. Considering that the Enterprise Income Tax Policy for the
Development of the Western Regions and the Preferential Income Tax Policies for
Small and Micro Enterprises have been extended for several times, this appraisal
assumes that the above policies will continue throughout the forecast period.
H. Forecast of depreciation and amortization
Depreciation is forecasted based on the size of fixed assets and the depreciation policy
implemented by the appraised entity. Amortization is forecasted based on the book balance and the
original recorded amount as at the Appraisal Benchmark Date, and future additions of each
appraised entity. Depreciation of fixed assets is calculated using the straight-line method over their
estimated useful lives as follows:
Buildings 45 years
Other equipment 5 years
Land use rights 40–50 years
I. Forecast of capital expenditures
Capital expenditures refer to expenditures for the renewal of existing fixed assets and
equipment and the possible increase of capital expenditures in the future as well as the investment
of long-term assets for more than one year, which are required by the appraised entity to meet its
future business plan. Based on one of the assumptions of the income approach in this appraisal,
– V-13 –
which assumes that the term of future earnings is of limited duration, capital expenditures are the
renewal expenditures that must be invested in order to meet the project’s plans to put the project
into operation and to maintain ongoing operations. It is assumed in this appraisal that the appraised
entity will not consider continuing to expand its scale of operation.
J. Determination of additional working capital
Additional working capital refers to the cash used for obtaining commercial credit from
others and the cash required to be maintained for normal operations in accordance with the changes
in the business activities of the appraised entity. Estimating the increase in working capital
requires, in principle, consideration of the major factors such as cash required to be maintained for
normal operations, accounts receivable, prepayments and accounts payable.
With reference to the annual turnover of various current assets and liabilities involved in the
operation of the appraised entity over the years, the forecast of working capital for future years is
measured by the following:
1. Receivables for the forecast period, the receivable benchmark settlement income is
settled with the State Grid once every month and is recognized on the basis of 1
month’s tax-inclusive income;
indirectly held by the appraised entity is about 1 year as at the Appraisal Benchmark
Date, it is assumed that the collection cycle of national subsidies for 2023 to 2029 shall
be 1 year;
indirectly held by the appraised entity is about 2 years as at the Appraisal Benchmark
be 2 years;
indirectly held by the appraised entity is about 3 years as at the Appraisal Benchmark
be 2 years;
5. The collection cycle of national subsidies for all new energy projects in 2030 and
thereafter is assumed to be 1 year.
6. Forecast annual prepayment = annual operating cost / number of forecast prepayment

made in the year.
7. Forecast annual accounts payable = annual operating costs / number of payment for
forecast accounts payable in the year.
8. Forecast operating cash flow = (operating costs + tax + expenses – depreciation and
amortization) in the year / the average number of cash payments in the year.
9. Forecast working capital = working capital + receivables + prepayments – payables –

taxes payable – employee compensation payable in the year.
10. Additional working capital = working capital required in the year – working capital
required in the previous year.
– V-14 –
A. Forecast of operating income
Operating income mainly refers to income attributable to wind power generation. Forecasts of
operating income are based on the appraised entity’s total installed capacity, historical annual
power generation, utilization hours, consolidated plant power rate, and future business plans.
Combined with the actual power generation in historical years, the utilisation hours of wind power
generation are expected to remain at the 2022 level of 3,752.4 hours in the future years.
According to the subsidy list of renewable energy power generation projects (Phase XII,
Phase XIII and Phase XV) published by Guangdong Power Grid Co., Ltd.* (廣東電網有限責任公
司), [2019] No. 882 Notice of the National Development and Reform Commission on Improving
the Policy on On-grid Tariff for Wind Power (國家發展改革委關於完善風電上網電價政策的通
知), and [2021] No. 433 Letter of the Development and Reform Commission of Guangdong
Province on Clarifying the Tax-inclusive On-Grid Tariff of Coal-fired Power Generating
Enterprises (廣東省發展和改革委員會關於明確燃煤發電企業含稅上網電價的函), the appraised
entity implemented an on-grid tariff of RMB0.85 per kWh including tax. The settlement tariff, i.e.
the benchmark price for coal-fired units in Guangdong Province (including desulphurization,
denitrification and dedusting), is RMB0.453 per kWh including tax; and the renewable energy
subsidy standard is RMB0.397 per kWh including tax.
According to Caijian [2020] No. 4 Guidelines on the Stable Development of Non-Water

Renewable Energy Generation (關於促進非水可再生能源發電健康發展的若干意見) and Caijian
[2020] No. 426 Supplementary Notice on Matters Relating to Guidelines on the Stable
Development of Non-Water Renewable Energy Generation (關於促進非水可再生能源發電健康發
展的若干意見有關事項的補充通知), the amount of national subsidies for renewable energy power
generation projects is approved based on the number of reasonable utilization hours. The
reasonable utilization hours for type one, type two, type three, and type four wind power projects
for each of its entire life cycle are 48,000 hours, 44,000 hours, 40,000 hours and 36,000 hours,
respectively. The reasonable utilization hours of offshore wind power plants in its entire life cycle
is 52,000 hours. Subsidised electricity volume for the entire project life cycle = project capacity ×
reasonable utilization hours of entire project life cycle. Future annual tariffs are projected to
remain constant at the level as at the Appraisal Benchmark Date.
B. Forecast of operating costs
Operating costs consist of utility rates, material costs, maintenance fees, employee
remuneration, depreciation and amortization (depreciation of fixed assets, amortization of
intangible assets and amortization of long-term amortization expenses), insurance and other
expenses.
1. Utility rates: expected to be consistent with the level of the year ended 31 December
2022.
2. Material costs: according to the engineering, procurement and construction contract

signed by the appraised entity pursuant to which a warranty period of five years is
agreed, the appraised entity was connected to the power grid at full capacity in
December 2021. The material costs within the warranty period are forecasted according
to the historical annual level and the material costs after the warranty period are
forecasted with reference to the data in the feasibility study report.
– V-15 –
3. Maintenance fees: according to the engineering, procurement and construction contract

signed by the appraised entity pursuant to which a warranty period of five years is
agreed, the appraised entity was connected to the power grid at full capacity in
December 2021. The maintenance fees within the warranty period are forecasted
according to the historical annual level and the maintenance fees after the warranty
period are forecasted with reference to the data in the feasibility study report.
4. Depreciation and amortization expenses: the forecast is made based on the accounting
system provided by the appraised entity, taking into account the depreciation of the
existing fixed assets and new assets to be added in the future years, and the existing
value of the intangible assets and long-term amortization expenses and the amortization
policy for the respective years.
5. Employee remuneration: the forecast is made according to the current remuneration

level with an annual increase of 2% until 2030 (considering the harsher working
conditions for offshore wind power projects), which will remain unchanged thereafter.
6. Insurance expenses: forecasted at 0.59% of net fixed assets for the future years.
7. Consulting service fees: according to the consulting service contract signed by the
appraised entity, the fee refers to the consulting service fee incurred by the appraised
entity in the early stage of operation. After communicating with the appraised entity, it
is understood that it is uncertain as to whether such expenses will be incurred in the
coming years, therefore the forecast of 2023 is based on the appraised entity’s historical
position as at the valuation benchmark date, and the expense will not be taken into
account in 2024 and future years.
8. Other expenses: other expenses are mainly daily sporadic expenditure costs, the
fluctuation of which are not significant, and other expenses in future years are
forecasted in accordance with the level of 2022.
C. Forecast of other income
The appraised entity will apportion the amount of management fees, operation and inspection
fees, repair fees, etc. payable by the project companies to the appraised entity according to their
respective installed capacity on an annual basis. The appraised entity will also apportion the
amount of depreciation or amortization in accordance with the installed capacity of each project
company, and will charge leasing fees from each project company for their use of the appraised
entity’s assets.
D. Forecast of taxes and surcharges
The taxes and surcharges of the appraised entity consist of land use tax, vehicle and vessel
use tax, stamp duty, water conservancy construction fund and urban construction and maintenance
tax, education surcharge and local education surcharge calculated on the basis of the amount of
value-added tax payable. As at the Appraisal Benchmark Date, the tax rates were: stamp duty
mainly levied at 0.03% of revenue, urban construction and maintenance tax rate of 7%, education
surcharge of 3% and local education surcharge of 2%. Land use tax and property tax: Currently,
the appraised entity is in a stable operation stage, and there is no plan to add new land and
property in the future, therefore, this recognition is based on the level of occurrence in historical
years.
– V-16 –
E. Forecast of finance costs
Finance costs are mainly interest expenses on borrowings. As the appraisal adopts the
corporate free cash flow where R = profit before interest and after tax + depreciation and
amortization – capital expenditure – changes in net working capital, no prediction of interest
expenses is made.
F. Forecast of other gains
According to the relevant provisions of the ‘‘Notice of the Ministry of Finance and the State
Administration of Taxation on the Value-added Tax Policy for Wind Power Generation (Cai Shui
[2015] No. 74) 《財政部、國家稅務總局關於風力發電增值稅政策的通知》
( (財稅[2015]74號))’’,
‘‘starting from 1 July 2015, taxpayer who sell self-produced power products using wind power will
be subject to the policy of immediate 50% value-added tax (VAT) refund upon collection’’. The
impact of this policy has been considered in this appraisal and it is assumed that this policy will
continue until the end of the operation period of the project.
G. Forecast of corporate income tax
The applicable enterprise income tax rate for the appraised entity is 25%. According to Guo
Shui Fa [2009] No. 80 Circular of the State Administration of Taxation on the Implementation of
Preferential Issues on Enterprise Income Tax for Public Infrastructure Projects with Key State
Support’ (國家稅務總局關於實施國家重點扶持的公共基礎設施項目企業所得稅優惠問題的通知)
and Cai Shui [2014] No. 55 ‘‘Supplementary Circular of the State Administration of Taxation on
the Implementation of Preferential Issues on the Enjoyment of Enterprise Income Tax for Public
Infrastructure Projects with Key State Support (國家稅務總局關於實施國家重點扶持的公共基礎
設施項目享受企業所得稅優惠問題的補充通知), the appraised entity’s offshore wind power
project is eligible for the preferential policy of three full exemptions and three reductions in
income tax from the year in which the appraised entity first records its revenue. The appraised
entity will enjoy a three-year exemption period from 2021 to 2023, and will be entitled to a
reduced enterprise income tax rate by 50% (12.5%) from 2024 to 2026.
H. Depreciation and amortization projections
Depreciation of fixed assets includes depreciation of existing fixed assets, depreciation of

renewed fixed assets and depreciation of new fixed assets. Depreciation of fixed assets is
forecasted based on the scale of existing fixed assets, the condition of existing fixed assets, the
scale of investment in new fixed assets and the depreciation policy implemented by the appraised
entity. Depreciation is provided in accordance with the established amortization method of the
appraised entity based on the book balance and original recorded amount as at the Appraisal
Benchmark Date. Depreciation of fixed assets is calculated using the straight-line method over
their estimated useful lives as follows:
Buildings 30 years
Land use rights 40–50 years
– V-17 –
I. Forecast of capital expenditures
Capital expenditures refer to expenditures for the renewal of existing fixed assets and
equipment and the possible increase of capital expenditures in the future as well as the investment
of long-term assets for more than one year, which are required by the appraised entity to meet its
future business plan. Based on one of the assumptions of the income approach in this appraisal,
which assumes that the term of future earnings is of limited duration, capital expenditures are the
renewal expenditures that must be invested in order to meet the project’s plans to put the project
into operation and to maintain ongoing operations. It is assumed in this appraisal that the
enterprise will not consider continuing to expand its scale of operation.
J. Determination of additional working capital
Additional working capital refers to the cash used for obtaining commercial credit from
others and the cash required to be maintained for normal operations in accordance with the changes
in the business activities of the appraised entity. Estimating the increase in working capital
requires, in principle, consideration of the major factors such as cash required to be maintained for
normal operations, accounts receivable, prepayments and accounts payable.
According to Caijian [2020] No. 426 Supplementary Notice on Matters Relating to

Guidelines on the Stable Development of Non-Water Renewable Energy Generation (關於促進非
水可再生能源發電健康發展的若干意見有關事項的補充通知), the reasonable utilization hours of
offshore wind power plants in its entire life cycle is 52,000 hours. The collection cycle of national
subsidies for 2030 and before is delayed by two years, and collection cycle of national subsidies
for 2030 and after is delayed by one year. With reference to the annual turnover of various current
assets and liabilities involved in the operation of the appraised entity over the years, the forecast of
working capital for future years is measured by the following:
1. Forecast annual prepayment = annual operating cost / number of forecast prepayment

made in the year.
2. Forecast annual accounts payable = annual operating costs / number of payment for
forecast accounts payable in the year.
3. Forecast operating cash flow = (operating costs + tax + expenses – depreciation and
amortization) in the year / the average number of cash payments in the year.
4. Forecast working capital = working capital + receivables + prepayments – payables –

taxes payable – employee compensation payable in the year.
5. Additional working capital = working capital required in the year – working capital
required in the previous year.
– V-18 –
Forecast period
Beijing Heilongjiang Fujian Shanxi Jieyang

Company Company Company Company Company
Forecast period April 2023 to April 2023 to April 2023 to April 2023 to April 2023 to
31 December 31 December August 2050 31 December June 2046
2048 2047 2048
Basis for the forecast period This appraisal assumes that the appraised entity and its subsidiaries will Based on the
not develop or invest in any new projects based of the existing investment designed lives of
projects in future years, and that the existing projects will exit at maturity offshore wind
and cease to operate upon the expiry of the operation period of the last power stations of
project in which it has invested. This appraisal assumes that no further 25 years.
costs in relation to the development and investment of new projects will be
incurred in future years.
The designed lives of wind power stations is 20 years, and the designed
lives of photovoltaic power stations is 25 years. The forecast period is
determined from the date of its grid-connection to the end of its designed
lives.
Discount rate
This evaluation adopts the free cash flow of the appraised entity, and the discount rate is the
weighted average cost of capital (WACC) of the corresponding standard. The WACC of the Target
Companies is in the range of 6.96% to 7.72%.
The weighted average cost of capital (WACC) model is used in this evaluation to determine the
discount rate r.
r = (1 – t) × rd × wd + re × we
t: income tax rate
Wd：Debt ratio
D
wd =
(E + D)
We：Equity capital ratio
E
we =
(E + D)
It should be noted that:
t income tax rate: public infrastructure projects enjoy preferential enterprise income tax i.e. from
the tax year when the project derives the first production and operational income, enterprise income tax
is exempted for the first three years (0% tax rate) and subject to a 50% reduction for the subsequent
three years (12.5% tax rate).
– V-19 –
wd debt ratio and we equity capital ratio: assuming 40% debt and 60% equity as the target capital
structure of the appraised entity, which references the average value of the capital structure of
comparable listed companies.
rd cost of debt: determined by reference to the LPR rate published by the People’s Bank of China
with a maturity term of 5 years or more, the fact that the cost of debt for state-owned enterprises is
lower than the benchmark data, and the weighted average effective borrowing rate of the target
company. The cost of debt for each of the Target Companies was determined as follows:
(1) Fujian Company: 3.36% considering its consolidated weighted average actual borrowing rate.
(2) Jieyang Company: 3.47% considering its consolidated weighted average actual borrowing
rate.
(3) Beijing Company, Shanxi Company and Heilongjiang Company: 3.44% considering the LPR
rate of over 5 years published by the People’s Bank of China, and that the cost of debt of
SOEs was lower than the benchmark data and calculated based on a downward fluctuation of
20%.
re cost of equity capital: determined in accordance with the Capital Asset Pricing Model (CAPM).
re = rf + βe × (rm – rf ）+ε
(1) rf risk-free rate: determined by reference to the yield to maturity of China treasury bonds at
the valuation reference date is used to determine the risk-free rate of return. The risk-free rate
for each of the Target Companies was determined as follows:
(1) Fujian Company and Jieyang Company: with reference to the average yield to maturity
of treasury bonds with a remaining maturity of 10 years or more of 3.67% as at the
Appraisal Benchmark Date.
(2) Beijing Company, Shanxi Company and Heilongjiang Company: with reference to the
information disclosed on the official website of the China Appraisal Society, the yield
to maturity of treasury bonds with a maturity of 10 years was 2.85% per annum as at
the Appraisal Benchmark Date.
(2) rm expected market return: determined by reference to Shenzhen CSI 300 Index, which is
used as an index to measure the change in volatility of China’s stock market and as a
measurement of its market risk reward rate. The expected market return for each of the
Target Companies was determined as follows:
(1) Fujian Company and Jieyang Company: 9.06% by taking the average return of CSI 300
closing index at the end of each year retrieved from Wind financial database* (Wind資
訊統計數據).
(2) Beijing Company, Shanxi Company and Heilongjiang Company: 9.92% by taking the
average return of the stock investment market based on the historical data of CSI 300
index and the monthly data up to the valuation benchmark date retrieved from Wind
financial database* (Wind資訊統計數據).
(3) ε: specific risk adjustment of 1%: based on the differences in terms of enterprise operational
environment, enterprise scale, business model, risk resistance capability etc. between the
enterprise to be valuated and comparable listed companies that have been selected.
– V-20 –
(4) βe: expected equity risk coefficient. the estimated value of the expected equity risk
coefficient was determined by the average beta coefficients of four comparable listed
companies in the A-share market (excluding financial leverage in the past five years). A
range from 0.8515 to 1.0669 was used. The average value of the capital structure of
comparable listed companies was selected as the target capital structure of the appraised
entity.
(5) principles for screening comparable companies in determining the βe coefficient:
. comparable companies must be listed for at least two years in China;
. new energy power generation industry is the industry or main business in which the
comparable company is engaged in; and
. there is no major asset reorganization or other events affecting share price volatility of
the comparable company in the past two years.
Determination of the appraised value of interest-bearing debts
Interest-bearing debts include short-term and long-term borrowings, the value of which is based on
market value.
Determination of the appraised value of surplus assets and non-operating assets
Surplus assets refer to excess assets that are not directly related to corporate income and exceed
the needs of corporate operations, and generally refer to excess monetary funds and transactional
financial assets, etc. Non-operating assets refer to assets that are not directly related to corporate
income, do not produce benefits, or are not considered in operating assets estimated by discounted cash
flow.
According to PCAA and Zhongtianhua, the valuation assumptions and conditions are made in
accordance with the relevant laws and regulations of the PRC, and are in line with market practice and
standard. The profit forecasts made are in line with the actual situation of the appraised entities and are
not significantly different from the parameters of comparable companies.
For details, please refer to the Asset Appraisal Reports which will be published on the websites of
the Company (www.chinapower.hk) and the Stock Exchange (www.hkexnews.hk) during the period of
14 days from the date of this circular.
Sensitivity Analysis
No sensitivity analysis has been conducted for the valuation of the Target Companies.
– V-21 –
APPENDIX VI LETTER FROM THE JOINT FINANCIAL ADVISERS ON
PROFIT FORECAST OF THE TARGET COMPANIES
LETTER FROM JOINT FINANCIAL ADVISERS
The following is the full text of the report from the Joint Financial Advisers, for the purpose of,
among other things, incorporation into this circular.
The Board of Directors

Suite 6301, 63/F, Central Plaza
18 Harbour Road
Wanchai
Hong Kong
26 July 2023
Ladies and Gentlemen:
We refer to the announcement of China Power International Development Limited (the

‘‘Company’’) dated 26 July 2023 (the ‘‘Announcement’’) in relation to (i) the acquisition of 55.15%
equity interest in SPIC Beijing Electric Power Co., Ltd. (‘‘Beijing Company’’), 100% equity interest in
SPIC Fujian Electric Power Co., Ltd. (‘‘Fujian Company’’), SPIC Heilongjiang Power Co., Ltd.
(‘‘Heilongjiang Company’’) and SPIC Shanxi Power Co., Ltd. (‘‘Shanxi Company’’) (the ‘‘Equity
Interest I’’) by the Company from State Power Investment Corporation Limited (國家電力投資集團有
限公司); and (ii) the acquisition of 100% equity interest in Jieyang Qianzhan Wind Power Co., Ltd.
(‘‘Jieyang Company’’) (the ‘‘Equity Interest II’’) by the Company from SPIC Guangdong Electric
Power Co., Ltd. (國家電投集團廣東電力有限公司) and China Power Complete Equipment Co., Ltd. (中
國電能成套設備有限公司). Unless otherwise defined or if the context otherwise requires, all terms
defined in the Announcement shall have the same meaning when used in this letter.
The Announcement refers to the valuation of Beijing Company, Heilongjiang Company and Shanxi
Company by the independent appraiser, Pan-China Assets Appraisal Co., Ltd (北京天健興業資產評估有
限公司) and the valuation of Fujian Company and Jieyang Company by the independent appraiser,
Beijing Zhongtianhua Assets Appraisal Co., Ltd. (北京中天華資產評估有限責任公司) (together, the
‘‘Independent Appraisers’’), which are contained in the respective asset appraisal reports (the ‘‘Asset
Appraisal Reports’’), all dated 25 July 2023 except for the asset appraisal report regarding the
valuation of Beijing Company which was dated 26 July 2023, prepared by the Independent Appraisers
for the purpose of the acquisition of Equity Interest I and Equity Interest II (together, the ‘‘Proposed
Acquisition’’). We understand that the Asset Appraisal Reports and certain other documents relevant to
the Proposed Acquisition have been provided to you as directors of the Company (the ‘‘Directors’’) in
connection with your consideration of the Proposed Acquisition. We understand that the Independent
Appraisers have adopted income approach in arriving at the valuation results in the Asset Appraisal
Reports, which is regarded as profit forecast (the ‘‘Profit Forecast’’) under Rule 14.61 of the Hong
Kong Listing Rules (the ‘‘Listing Rules’’).
For the purpose of this letter, we have (1) reviewed the Profit Forecast included in the Asset
Appraisal Reports and disclosed in the Announcement, for which you as the Directors are solely
responsible, (2) made enquiries with you, the management of the Company and the Independent
Appraisers regarding the qualifications, bases and assumptions upon which the Profit Forecast in the
Asset Appraisal Reports has been made, and (3) reviewed the reports to the Directors from Ernst &
Young, dated 26 July 2023, as set forth in Appendix III to the Announcement regarding the calculations
of discounted future cash flows on which the Profit Forecast is based. The Profit Forecast is based on a
number of bases and assumptions. As the relevant bases and assumptions are about future events which
may or may not occur, the actual financial performance of the business of the Target Companies may or
may not achieve as expected and the variation may be material.
– VI-1 –
APPENDIX VI LETTER FROM THE JOINT FINANCIAL ADVISERS ON
On the basis of the foregoing and without giving any opinion on the reasonableness of the
valuation methods, bases and assumptions selected by the Independent Appraisers and the Company, for
which the Independent Appraisers and the Company are solely responsible, we are of the opinion that
the Profit Forecast disclosed in the Announcement have been made after due and careful enquiry by you.
The Directors are responsible for such Profit Forecast, including the preparation of the discounted future
cash flows in accordance with the bases and assumptions determined by the Directors and as set out in
the Asset Appraisal Reports. This responsibility includes carrying out appropriate procedures relevant to
the preparation of the discounted future cash flows for the Asset Appraisal Reports and applying an
appropriate basis of preparation; and making estimates that are reasonable in the circumstances. For the
avoidance of doubt, this letter does not constitute an independent valuation or fairness opinion and is
expressly limited to the matters described herein.
The work undertaken by us is for the purpose of reporting solely to you under Rule 14.62(3) of the
Listing Rules and for no other purpose. We have not independently verified the assumptions or
computations leading to the valuation as set out in the Asset Appraisal Reports. We have had no role or
involvement and have not provided and will not provide any assessment of the valuation as set out in the
Asset Appraisal Reports. We have assumed that all information, materials and representations provided
to us by the Company and the Independent Appraisers, including all information, materials, and
representations referred to or contained in the Announcement were true, accurate, complete and not
misleading at the time they were supplied or made, and remained so up to the date of this letter and that
no material fact or information has been omitted from the information and materials supplied. No
representation or warranty, whether express or implied, is made by us on the accuracy, truthfulness or
completeness of such information, materials or representations. Accordingly, we accept no
responsibility, whether expressly or implicitly, on the valuation as set out in the Asset Appraisal
Reports.
Yours faithfully,
For and on behalf of
China Securities (International) CITIC Securities (Hong Kong) Limited

Corporate Finance Company Limited
George Yen Edmund Chan

Executive Director Managing Director, Head of M&A
– VI-2 –
APPENDIX VII LETTER FROM ERNST & YOUNG ON
REPORT FROM ERNST & YOUNG
The following is the full text of the report from Ernst & Young, for the purpose of, among other
things, incorporation into this circular.
26 July 2023
The Board of Directors

Suite 6301, 63/F., Central Plaza
18 Harbour Road,
Wanchai,
Hong Kong
REPORT FROM REPORTING ACCOUNTANTS ON THE DISCOUNTED CASH FLOW

FORECAST IN CONNECTION WITH THE VALUATION OF EQUITY INTERESTS IN THE
TARGET COMPANIES
Dear Sirs,
We have been engaged to report on the arithmetical accuracy of the calculations of the discounted
cash flow forecast (the ‘‘Forecast’’) on which the valuation dated 31 March 2023 prepared by Pan-China
Assets Appraisal Co., Ltd. and Beijing Zhongtianhua Assets Appraisal Co., Ltd. in respect of certain
companies (the ‘‘Target Companies’’) set out in the ‘‘List of Target Companies’’ below as at 31
March 2023 is based. The valuation is set out in the announcement of China Power International
Development Limited (the ‘‘Company’’) dated 26 July 2023 (the ‘‘Announcement’’) in connection with
the proposed acquisition of equity interests in the Target Companies. The valuation based on the
Forecast is regarded by The Stock Exchange of Hong Kong Limited as a profit forecast under paragraph
14.61 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited
(the ‘‘Listing Rules’’).
Directors’ responsibilities
The directors of the Company (the ‘‘Directors’’) are solely responsible for the Forecast. The
Forecast has been prepared using a set of bases and assumptions (the ‘‘Assumptions’’), the
completeness, reasonableness and validity of which are the sole responsibility of the Directors. The key
Assumptions are set out in Appendix I (Key Assumptions of the Asset Appraisal Reports) to the
Announcement.
Our independence and quality control
We have complied with the independence and other ethical requirements of the Code of Ethics for
Professional Accountants issued by the Hong Kong Institute of Certified Public Accountants
(‘‘HKICPA’’), which is founded on fundamental principles of integrity, objectivity, professional
competence and due care, confidentiality and professional behavior.
Our firm applies Hong Kong Standard on Quality Management 1 Quality Management for Firms
that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services
Engagements, which requires the firm to design, implement and operate a system of quality control
including policies or procedures regarding compliance with ethical requirements, professional standards
and applicable legal and regulatory requirements.
Reporting accountants’ responsibilities
Our responsibility is to express an opinion on the arithmetical accuracy of the calculations of the
Forecast based on our work. The Forecast does not involve the adoption of accounting policies.
– VII-1 –
APPENDIX VII LETTER FROM ERNST & YOUNG ON
We conducted our engagement in accordance with Hong Kong Standard on Assurance

Engagements 3000 (Revised) Assurance Engagements Other than Audits or Reviews of Historical
Financial Information issued by the HKICPA. This standard requires that we plan and perform our work
to obtain reasonable assurance as to whether, so far as the arithmetical accuracy of the calculations are
concerned, the Directors have properly compiled the Forecast in accordance with the Assumptions
adopted by the Directors. Our work consisted primarily of checking the arithmetical accuracy of the
calculations of the Forecast prepared based on the Assumptions made by the Directors. Our work is
substantially less in scope than an audit conducted in accordance with Hong Kong Standards on
Auditing issued by the HKICPA. Accordingly, we do not express an audit opinion.
We are not reporting on the appropriateness and validity of the Assumptions on which the Forecast
are based and thus express no opinion whatsoever thereon. Our work does not constitute any valuation
of the Target Companies. The Assumptions used in the preparation of the Forecast include hypothetical
assumptions about future events and management actions that may or may not occur. Even if the events
and actions anticipated do occur, actual results are still likely to be different from the Forecast and the
variation may be material. Our work has been undertaken for the purpose of reporting solely to you
under paragraph 14.62(2) of the Listing Rules and for no other purpose. We accept no responsibility to
any other person in respect of our work, or arising out of or in connection with our work.
Opinion
Based on the foregoing, in our opinion, so far as the arithmetical accuracy of the calculations of
the Forecast is concerned, the Forecast has been properly compiled in all material respects in accordance
with the Assumptions adopted by the Directors.
Yours faithfully,

Hong Kong
List of Target Companies
1. SPIC Fujian Electric Power Co., Ltd.
2. SPIC Heilongjiang Power Co., Ltd.
3. SPIC Beijing Electric Power Co., Ltd.
4. SPIC Shanxi Power Co., Ltd.
5. Jieyang Qianzhan Wind Power Co., Ltd.
– VII-2 –
APPENDIX VIII GENERAL INFORMATION
1. RESPONSIBILITY STATEMENT
This circular, for which the Directors collectively and individually accept full responsibility,
includes particulars given in compliance with the Listing Rules for the purpose of giving information
with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the
best of their knowledge and belief the information contained in this circular is accurate and complete in
all material respects and not misleading or deceptive, and there are no other matters the omission of
which would make any statement herein or this circular misleading.
2. DISCLOSURE OF INTERESTS
As at the Latest Practicable Date, save as the share options granted to our Directors under a share
option incentive scheme pursuant to the ordinary resolution passed by the Shareholders on 15 June 2022
as disclosed in the table below, none of the Directors or the chief executive has any interest or short
positions in the shares, underlying shares or debentures of the Company or any of its associated
corporations within the meaning of Part XV of the SFO which will have to be notified to the Company
and the Hong Kong Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including
interests and short positions which they are taken or deemed to have under such provisions of the SFO),
or which will be required, pursuant to Section 352 of the SFO, to be entered in the register referred to
therein or which will be required to be notified to the Company and the Hong Kong Stock Exchange
pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers.
Number of
underlying
Name of shares interested Percentage of
company in under physically issued share
which interests settled equity capital of the Long/short
Name of Director Capacity are held Date of grant derivatives Company (%) position
HE Xi beneficial owner the Company 5 July 2022 1,100,000 0.009 Long
GAO Ping beneficial owner the Company 5 July 2022 1,100,000 0.009 Long
3. DIRECTORS’ SERVICE CONTRACTS
As at the Latest Practicable Date, none of the Directors had any existing or proposed service
contract with any member of the Enlarged Group which was not determinable by the employing
company within one year without payment of compensation other than statutory compensation.
4. DIRECTORS’ INTEREST IN COMPETING BUSINESS
As at the Latest Practicable Date, save as disclosed below, none of the Directors and their
associates had any interests in a business which competes or is likely to compete, either directly or
indirectly, with the business of the Group:
Position(s) within
Name of the Director the Company Other Interests
HE Xi Chairman of the Board and Chief engineer of new energy of SPIC
Executive Director
ZHOU Jie Non-executive Director Special duty director of SPIC
Director of CPI Holding
Director of SPIC Guangdong
Director of Qinghai Huanghe Hydropower

Development Co., Ltd.* (青海黃河上游水電
開發有限責任公司)
– VIII-1 –
Position(s) within
Name of the Director the Company Other Interests
HUANG Qinghua Non-executive Director Special duty director of SPIC
Director of SPIC Guizhou Jinyuan Co., Ltd.*

(國家電投集團貴州金元股份有限公司)
Director of SPIC Chongqing Electric Power

Co., Ltd.* (國家電投集團重慶電力有限公司)
Director of State Nuclear Zhanjiang Nuclear

Power Co., Ltd.* (國核湛江核電有限公司)
5. DIRECTOR’S INTERESTS IN CONTRACTS
None of the Directors was materially interested in any contract or arrangement entered into by any
member of the Enlarged Group since 31 December 2022, being the date to which the latest published
audited financial statements of the Group were made up or subsisting at the Latest Practicable Date, and
which was significant in relation to the business of the Enlarged Group.
6. EXPERTS AND CONSENTS
The following are the qualifications of the professional adviser who has given opinions or advice
contained in this circular:
Name Qualifications
Baker Tilly Hong Kong Limited certified public accountants
BDO Limited certified public accountants
CITICS a licensed corporation to carry out Type 4 (advising on

securities) and Type 6 (advising on corporate finance)
regulated activities under the SFO
Confucius International CPA certified public accountants

Limited
CSCI registered institution under the SFO, licensed to carry on

Type 1 (dealing in securities) and Type 6 (advising on
corporate finance) regulated activities
Ernst & Young certified public accountants
Gram Capital a licensed corporation to carry out Type 6 (advising on

corporate finance) regulated activity under the SFO
Grant Thornton Hong Kong certified public accountants

Limited
PCAA independent and qualified PRC appraiser
Zhongtianhua independent and qualified PRC appraiser
– VIII-2 –
As at the Latest Practicable Date, all of the experts set out above:
(i) did not have any beneficial shareholding in any member of the Group or the right (whether
legally enforceable or not) to subscribe for or nominate persons to subscribe for securities in
any member of the Group; and
(ii) did not have any direct or indirect interests in any assets which have been acquired or
disposed of by or leased to or are proposed to be acquired or disposed of by or leased to any
member of the Enlarged Group since 31 December 2022, being the date to which the latest
published audited consolidated financial statements of the Company were made up.
All of the experts set out above had given and had not withdrawn their written consents to the
issue of this circular with the inclusions of their reports, opinions or statements (as the case may be) as
set out in this circular and references to their name in the form and context in which they are included.
7. INTERESTS IN ASSETS
As at the Latest Practicable Date, (i) none of the Directors was materially interested, directly or
indirectly, in any contract or arrangement entered into by any member of the Enlarged Group subsisting
at the Latest Practicable Date and which was significant in relation to the business of the Enlarged
Group; and (ii) none of the Directors or expert named in paragraph 6 of this Appendix had any direct or
indirect interest in any assets which had been, since 31 December 2022 (being the date of which the
latest published audited consolidated accounts of the Company were made up), acquired or disposed of
by or leased to any member of the Enlarged Group, or were proposed to be acquired or disposed of by
or leased to any member of the Enlarged Group.
8. MATERIAL ADVERSE CHANGE
As at the Latest Practicable Date, the Directors are not aware of any material adverse change in the
financial or trading position or prospect of the Group since 31 December 2022, the date to which the
latest published audited consolidated financial statements of the Group were made up.
9. LITIGATION
As at the Latest Practicable Date, none of the members of the Enlarged Group was engaged in any
litigation or arbitration of material importance and there was no litigation or claim of material
importance known to the Directors to be pending or threatened by or against any member of the
Enlarged Group.
10. MISCELLANEOUS
(a) The company secretary of the Company is Ms. CHEUNG Siu Lan, who is a fellow member
of The Hong Kong Chartered Governance Institute and The Chartered Governance Institute,
holding Chartered Secretary and Chartered Governance Professional dual designations. She is
also a fellow member of Hong Kong Institute of Certified Public Accountants and CPA
Australia.
(b) The registered office of the Company is Suite 6301, 63/F. Central Plaza, 18 Harbour Road,
Wanchai, Hong Kong.
(c) Computershare Hong Kong Investor Services Limited, the share registrar of the Company, is
located at Shops 1712–1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai,
Hong Kong.
(d) This circular has been prepared in both English and Chinese. In the case of inconsistency, the
English text of this circular will prevail over the Chinese text.
– VIII-3 –
11. MATERIAL CONTRACTS
As at the Latest Practicable Date, the following contracts (not being contracts entered into in the
ordinary course of business) were entered into by members of the Enlarged Group within the two years
immediately preceding the date of this circular and are, or may be, material:
(a) Agreement I; and
(b) Agreement II.
12. DOCUMENTS ON DISPLAY
Copies of the following documents will be published on the websites of the Company
(www.chinapower.hk) and the Stock Exchange (www.hkexnews.hk) during the period of 14 days from
the date of this circular:
(i) the Acquisition Agreements;
(ii) the Asset Appraisal Reports;
(iii) FS Framework Agreement Supplemental Agreement;
(iv) the letter dated 18 August 2023 from the Independent Board Committee, the text of which is
set out in this circular;
(v) the letter dated 18 August 2023 from Gram Capital, the text of which is set out in this
circular;
(vi) the accountants’ reports on the Target Companies, the text of which is set out in Appendix II;
(vii) Unaudited pro forma financial information of the Enlarged Group set out in Appendix IV;
(viii) the letter on profit forecast of the Target Companies dated 26 July 2023 from the Joint
Financial Advisers, the text of which is set out in Appendix VI;
(ix) the letter on profit forecast of the Target Companies dated 26 July 2023 from Ernst & Young,
the text of which is set out in Appendix VII; and
(x) the written consents referred to in the section headed ‘‘6. Experts and Consents’’ in this
Appendix.
– VIII-4 –
NOTICE OF THE GENERAL MEETING

(Stock Code: 2380)
NOTICE IS HEREBY GIVEN that a general meeting of China Power International Development
Limited (the ‘‘Company’’) will be held on Wednesday, 6 September 2023 at 10:30 a.m. at Salon 5, JW
Marriott Ballroom, 3/F, JW Marriott Hotel Hong Kong, Pacific Place, 88 Queensway, Hong Kong (the
‘‘General Meeting’’ or ‘‘GM’’), for the purposes of considering and, if thought fit, passing, with or
without modifications, the following resolutions as ordinary resolutions of the Company:
ORDINARY RESOLUTIONS
1. ‘‘THAT:
a. the conditional sale and purchase agreement (the ‘‘Agreement I’’) dated 26 July 2023
between the Company and State Power Investment Corporation Limited* (國家電力投
資集團有限公司) (‘‘SPIC’’), pursuant to which the Company has conditionally agreed
to acquire, and SPIC has conditionally agreed to sell, 55.15% equity interest in SPIC
Beijing Power Co., Ltd.* (國家電投集團北京電力有限公司), 100% equity interest in
SPIC Fujian Electric Power Co., Ltd.* (國家電投集團福建電力有限公司), SPIC
Heilongjiang Power Co., Ltd.* (國家電投集團黑龍江電力有限公司) and SPIC Shanxi
Power Co., Ltd.* (國家電投集團山西電力有限公司) at a total consideration of
RMB8,811,044,100 (equivalent to approximately HK$9,682,466,000), a copy of which
has been produced to the meeting marked ‘‘A’’ and has been initialled by the chairman
of this meeting for the purpose of identification, and all the transactions contemplated
thereunder, be and are hereby generally and unconditionally approved, confirmed and
ratified;
b. the conditional sale and purchase agreement (the ‘‘Agreement II’’) dated 26 July 2023
between the Company and SPIC Guangdong Electric Power Co., Ltd. * (國家電投集團
廣東電力有限公司) (‘‘SPIC Guangdong’’), China Power Complete Equipment Co.,
Ltd.* (中國電能成套設備有限公司) (‘‘CPCEC’’), pursuant to which the Company has
conditionally agreed to acquire, and SPIC Guangdong and CPCEC has conditionally
agreed to sell 100% equity interest in Jieyang Qianzhan Wind Power Co., Ltd.* (揭陽前
詹風電有限公司) at a total consideration of RMB1,974,016,700 (equivalent to
approximately HK$2,169,249,000), a copy of which has been produced to the meeting
marked ‘‘B’’ and has been initialled by the chairman of this meeting for the purpose of
identification, and all the transactions contemplated thereunder, be and are hereby
generally and unconditionally approved, confirmed and ratified; and
c. any director(s) of the Company be and is/are hereby authorised to enter into any
agreement, deed or instrument and/or to execute and deliver all such documents and/or
do all such acts on behalf of the Company as he/she may consider necessary, desirable
or expedient for the purpose of, or in connection with (i) the implementation and
completion of Agreement I and Agreement II and transactions contemplated thereunder
and (ii) any amendment, variation or modification of Agreement I and Agreement II and
the transactions contemplated thereunder.’’
– GM-1 –
2. ‘‘THAT:
a. the entering into of the financial services framework agreement supplemental agreement
(the ‘‘FS Framework Agreement Supplemental Agreement’’) between the Company
and SPIC Financial Company Limited* (國家電投集團財務有限公司) (‘‘SPIC
Financial’’) dated 17 August 2023 (a copy of the FS Framework Agreement
Supplemental Agreement has been produced to the meeting marked ‘‘C’’ and has been
initialled by the chairman of this meeting for the purpose of identification) and all other
matters of and incidental thereto or in connection therewith be and are hereby approved
and confirmed;
b. the annual cap of the deposit services contemplated under the FS Framework Agreement
Supplemental Agreement, being the proposed revised maximum daily balance of
deposits (including accrued interests) placed by the Company and its subsidiaries from
time to time with SPIC Financial during the term of the FS Framework Agreement as
more particularly set out in the circular of the Company dated 18 August 2023 (a copy
of which has been produced to the meeting marked ‘‘D’’ and has been initialled by the
chairman of this meeting for the purpose of identification), be and is hereby approved
and confirmed; and
c. any director(s) of the Company be and is/are hereby authorized for and on behalf of the
Company, amongst other matters, to sign, seal, execute, perfect, deliver, do or to
authorize signing, executing, perfecting and delivering and doing all such documents,
deeds, acts, matters and things as he/she may in his/her discretion consider necessary,
expedient or desirable to give effect to and implement the terms of the FS Framework
Agreement Supplemental Agreement and to make and agree such variations of a non-
material nature in or to the terms of the FS Framework Agreement Supplemental
Agreement as he/she may in his discretion consider to be desirable and in the interests
of the Company.’’
* English or Chinese translation, as the case may be, is for identification only
By Order of the Board

HE Xi
Chairman
Registered Office:
Suite 6301, 63/F., Central Plaza
18 Harbour Road
Wanchai
Hong Kong
Notes:
1. Each of the resolutions set out in this notice will be voted by way of a poll. A member of the Company entitled to vote at
the GM is entitled to appoint one or more proxies to attend and vote on his/her behalf. A proxy need not be a member of
the Company.
2. To be valid, the form of proxy, together with the power of attorney or other authority, if any, under which it is signed, or a
notarially certified copy of that power or authority must be deposited (i) at the Company’s share registrar, Computershare
Hong Kong Investor Services Limited at 17M Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong, or
(ii) electronically via the Company’s email address at eproxy@chinapower.hk not less than 48 hours before the time
appointed for the holding of the GM or any adjournment thereof (as the case may be). This email address is provided solely
for receiving proxy forms relating to the GM and shall not be used for any other purposes.
– GM-2 –
3. Closure of register of members of the Company for the GM: The register of members of the Company will be closed
from Friday, 1 September 2023 to Wednesday, 6 September 2023, both days inclusive, during which period no transfer of
shares of the Company will be effected. In order to qualify to vote at the GM, all transfers accompanied by the relevant
share certificates must be lodged with the Company’s share registrar, Computershare Hong Kong Investor Services Limited,
at Shops 1712–1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong not later than 4:30 p.m.
on Thursday, 31 August 2023.
4. In the event that a gale warning (tropical cyclone no. 8 or above) or black rainstorm warning is in effect at any time
between 9:00 a.m. and 10:30 a.m. on the day of the above meeting, the above meeting will be automatically postponed to a
later date. In this event, the Company will, as soon as practicable, post an announcement on its website and on the website
of the Stock Exchange to notify the Shareholders that the above meeting has been postponed (however, a failure to post
such an announcement shall not affect the automatic postponement of such meeting). Shareholders may also telephone the
Company’s hotline on (852) 2862 8555 to enquire whether the meeting has been cancelled. When the date, time and
location of the rescheduled meeting has been fixed, the Company will post a further announcement on its website and on
the website of the Stock Exchange to notify the Shareholders of the date, time and location of the rescheduled meeting. At
least seven clear days’ notice shall be given of the rescheduled meeting.
5. As at the date of this notice, the directors of the Company are: executive directors HE Xi and GAO Ping, non-executive
directors ZHOU Jie and HUANG Qinghua, and independent non-executive directors LI Fang, YAU Ka Chi and HUI Hon
Chung, Stanley.
If Shareholders have any questions relating to the GM, please contact the share registrar of the Company as follows:
Computershare Hong Kong Investor Services Limited

17M Floor, Hopewell Centre
183 Queen’s Road East
Wanchai, Hong Kong
Tel: (852) 2862 8555
Fax: (852) 2865 0990
Online Enquiries: www.computershare.com/hk/en/online_feedback
Please note that there will be NO serving of any refreshments or beverages and NO distribution of
gifts, souvenirs or bakery vouchers at the GM.
– GM-3 –

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THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

CHINA POWER INTERNATIONAL DEVELOPMENT LIMITED

Joint Financial Advisers to the Company

Independent Financial Adviser to the Independent Board Committee

LETTER FROM THE BOARD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

LETTER FROM THE INDEPENDENT BOARD COMMITTEE . . . . . . . . . . . . . . . . 23

LETTER FROM GRAM CAPITAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

APPENDIX I — Financial Information of the Group . . . . . . . . . . . . . . . . . . . . . I-1

APPENDIX IIA — Accountants’ Report on Beijing Company . . . . . . . . . . . . . . . IIA-1

APPENDIX IIB — Accountants’ Report on Heilongjiang Company . . . . . . . . . IIB-1

APPENDIX IIC — Accountants’ Report on Fujian Company . . . . . . . . . . . . . . . . IIC-1

APPENDIX IID — Accountants’ Report on Shanxi Company . . . . . . . . . . . . . . . IID-1

APPENDIX IIE — Accountants’ Report on Jieyang Company . . . . . . . . . . . . . . . IIE-1

APPENDIX III — Management Discussion and Analysis of the

APPENDIX IV — Unaudited Pro Forma Financial Information of the

APPENDIX V — Summary of Asset Appraisal Reports . . . . . . . . . . . . . . . . . . . . V-1

APPENDIX VI — Letter from the Joint Financial Advisers

APPENDIX VII — Letter from Ernst & Young on Profit Forecast

APPENDIX VIII — General information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VIII-1

NOTICE OF THE GENERAL MEETING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . GM-1

‘‘Acquisitions’’ Acquisition I and Acquisition II (individually the Acquisition where the

‘‘Shanxi Company’’ SPIC Shanxi Power Co., Ltd.* (國家電投集團山西電力有限公司), a

CHINA POWER INTERNATIONAL DEVELOPMENT LIMITED

Independent non-executive Directors:

Dear Sir or Madam,

(1) MAJOR AND CONNECTED TRANSACTIONS

Reference is made to the Announcement in relation to the Acquisitions.

Indirectly holds Directly holds Directly holds Indirectly holds Directly

The Beijing Heilongjiang Company, SPIC

(ii) After Completion of the Acquisitions

Indirectly Indirectly Directly

Beijing Heilongjiang Fujian Shanxi Jieyang

Revision of Annual Cap

II. THE ACQUISITIONS

A. THE ACQUISITION AGREEMENTS

(i) the Company, as the Purchaser; and

(ii) SPIC, as the Seller.

The total consideration for the acquisition of Equity Interests I is RMB8,811,044,100

(i) the Company, as the Purchaser; and

(ii) SPIC Guangdong and CPCEC, as the Sellers.

The total consideration for the acquisition of Equity Interests II is RMB1,974,016,700

The consideration allocated to each of the Equity Interests

1. The total consideration for Acquisition I of RMB8,811,044,100 (equivalent to approximately

2. The total consideration for Acquisition II of RMB1,974,016,700 (equivalent to approximately

Conditions precedent to the Acquisition Agreements

For the avoidance of doubt, subject to relevant provisions in the Acquisition

Settlement of the consideration for the Acquisitions

(i) 40% of the respective consideration of Agreement I and Agreement II shall be

(ii) 40% of the respective consideration of Agreement I and Agreement II shall be

(iii) 20% of the respective consideration of Agreement I and Agreement II shall be

Put Option under the Acquisition Agreements

Regulatory requirements in respect of the Acquisition Agreements

Asset Appraisal Reports

B. REASONS FOR AND BENEFITS OF THE ACQUISITIONS

The Acquisitions involve acquisition of power generation project with a total

(2) Firmly implement the new development strategy of China Power

The acquisition of high-quality clean energy assets involved in the Acquisitions

The Acquisitions involve assets located in 21 provinces in the PRC, mainly in

(4) Improve profitability of the Group