GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

The Semi-annual Report 2026

August 2026

I. Important Notice, Table of Contents and Definitions

The Board of Directors ,Directors and Senior Executives of the Company hereby guarantees that there are no misstatement, misleading representation or important omissions in this report and shall assume joint and severa liability for the authenticity, accuracy and completeness of the contents hereof.

Mr.Zheng Yunpeng, The Company leader, Mr. Liu Wei, Chief financial officer and the Mr.Meng Fei, the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this semi-annual report.

Directors other than the following ones have attended the Board meeting to review the Summary- annual report.

The main business of the company is the investment, construction and operation management of power projects and new energy projects. For the risks and countermeasures that the company may face in its future development, Refer to Section 10 of Chapter III of this annual report-situation faced and countermeasures for relevant information.

The Company Will not distribute cash dividend or bonus shares, neither capitalizing of common reserves.

Table of Contents

I.Important Notice, Table of contents and Definitions

II. Company Profile & Financial Highlights.

III. Management Discussion & Analysis

IV. Corporate Governance, Environmental and Social Responsibility

V. Important Events

VI. Change of share capital and shareholding of Principal Shareholders

VII. Corporate Bond

VIII. Financial Report

Documents available for inspection

1.Financial statements bearing the seal and signature of legal representative, financial controller and the person in charge of the accounting organ;

2.All original copies of official documents and notices, which were disclosed in China Securities Journal, Securities Times, Shanghai Securities News, Securities Daily and Hong Kong Commercial Daily (Both English and Chinese version);

3.Chinese version of the semi-annual report.

The documents mentioned above are kept in office, and are ready for reference at any time (except public holidays, Saturday and Sunday).

Definition

II. Company Profile & Financial Highlights.

I. Company Profile

Ⅱ. Contact person and contact manner

III. Other info.

1. Way of contact

Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or not

□ Applicable √ Not applicable

Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period, found more details in Annual report 2025.

2. Information inquiry

Whether information disclosure and preparation place changed in reporting period or not

□ Applicable √ Not applicable

None of the official presses, website, and place of enquiry has been changed in the semi report period. found more details in Annual report 2025.

3. Other relevant information

Did any change occur to other relevant information during the reporting period?

□ Applicable √ Not applicable

IV. Summary of Accounting data and Financial index

Whether it has retroactive adjustment or re-statement on previous accounting data □Yes √No

V.The differences between domestic and international accounting standards

1).Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial reports of differences in net income and net assets.

□ Applicable□√ Not applicable

None

2).Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards.

□ Applicable √Not applicable

None

VI. Item and amount of non-current gains and losses

√Applicable □Not applicable

In RMB

Details of other profit and loss items that meet the non-recurring profit and loss definition

□ Applicable√ Not applicable

None

For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason.

√ Applicable □ Not applicable

III. Management Discussion & Analysis

Ⅰ.Main Business the Company is Engaged in During the Report Period

The Company shall comply with the disclosure requirements of power-related industries in the Guideline No.3 for Self-regulation of Listed Companies of Shenzhen Stock Exchange-Industry Information Disclosure.

The Company mainly engages in the investment, construction and operation management of power projects, and the production and sales of electric power. It belongs to the power, heat production and supply industry classified in the “Guidelines for the Industry Classification of Listed Companies” by the China Securities Regulatory Commission. Since its foundation, the Company has always adhered to the business tenet of “Capital from the people, using it for electricity, and benefiting the public” and adheres to the business policy of “Centering on the main business of electricity, with diversified development”, focusing on the main business of power and making the power structure go diversified. In addition to the development, construction and operation of large-scale coal fired power plants, it also has clean energy projects such as LNG power generation, wind power generation and hydropower generation, which provides reliable and clean energy to users through the grid company.

As of June 30,2026,the Company had a controllable installed capacity of 47.7410 million kilowatts, of which 45.0171 million kilowatts were owned by the Company and 2.7238 million kilowatts were owned by the Company. Among them: coal-fired power generation holding installed capacity of 24.15 million kilowatts, accounting for 53.6 per cent; gas power holding installed capacity of 11.847 million kilowatts, accounting for 26.32 per cent; wind power holding installed capacity of 3.8948 million kilowatts, accounting for 8.65 per cent; photovoltaic holding installed capacity of 4.8925 million kilowatts, accounting for 10.87 per cent; hydroelectricity holding installed capacity of 132,800 kilowatts; Biomass holding installed capacity of 100,000 kilowatts; the above wind power, hydropower, photovoltaic, biomass and other renewable energy power generation holding installed capacity 9.0201 million kilowatts, accounting for 20.04%. In addition, The entrusted management installed capacity by the Company is 9.0455 million kilowatts (6.65 million kilowatts of thermal power, 2.2955 million kilowatts of hydropower, and 100,000 kilowatts of wind power), and the total controllable installed capacity and entrusted management installed capacity are 56.4745 million kilowatts.

Income source is primarily contributed by power production and sales, and main business income is derived from Guangdong Province. The company electricity sales price is subject to the benchmark price verified by the price authority per relevant policies based on National Development and Reform Commission (NDRC) and the electricity transaction price through the market trade implementation per Guangdong Electricity Market Trade Basic Rules and supporting files. During the reporting period, The Company's electricity sales were 65.714 billion kWh, a YOY increase of 23.14%; The average price of electricity sold in the consolidated statement was 445.90 yuan/ Thousand KWh, a YOY decrease of 34.11 yuan/Thousand kWh, a decrease of 7.11%; The operating income was 26,333.09 million yuan, a YOY increase of 3,191.65 million yuan or an increase of 13.79%.

The Company's main business is thermal power generation, the fuel costs account for a large proportion of operating costs, and fluctuations in coal and natural gas prices have a great impact on the Company's operating performance. During the reporting period, the Company's fuel cost was 19,313.78 million yuan, accounting for 76.25% of the operating cost, Affected by increased power generation and rising market prices for coal and natural gas, and the fuel cost increased by 4,325.61 million yuan YOY.

In the first half of 2026, thanks to the commissioning of new coal-fired power projects and improvements in the generation efficiency of existing units, the Company’s electricity supply to the grid increased by 23.14 per cent year-on-year. However, due to the continued decline in the comprehensive grid-connected electricity tariff, a yearon-year rise in fuel costs, and lower-than-expected utilisation hours for new energy projects—coupled with the impact of increased expenses such as depreciation, labour costs and interest on newly commissioned units—the gross profit margin of the Company’s power generation business continued to narrow. During the reporting period, the Company as a whole recorded a net profit attributable to shareholders of –545.78 million yuan, representing a loss compared with the previous year. Specifically, the coal-fired power business recorded a net profit attributable to shareholders of –544.90 million yuan; the gas-fired power business recorded a net profit attributable to shareholders of –256.55 million yuan; the hydropower business recorded a net profit attributable to shareholders of 6.03 million yuan; and the new energy business recorded a net profit attributable to shareholders of –97.89 million yuan; the Company’s head office investment operations recorded a net profit attributable to shareholders of 194.64 million yuan.

The Company shall comply with the disclosure requirements of power-related industries in the Guideline No.3 for Self-regulation of Listed Companies of Shenzhen Stock Exchange-Industry Information Disclosure.

As of June 2026, the Company had a total installed capacity of approximately 8.7873 million kilowatts in new energy sources such as wind power and photovoltaic power, of which approximately 2.2015 million KW was offshore wind power, approximately 1.6934 million kilowatts was onshore wind power, and approximately 4.8925 million kilowatts was photovoltaic power generation. In the first half of 2026, there were 300,000 kilowatts of wind power projects under construction at Guangdong Huilai Shibeishan and Shanxi Yuncheng, and approximately 500,000 kilowatts of photovoltaic projects under construction in Hainan, Guangdong and other regions in aggregate. In addition, 1.79 million kilowatts of projects had completed decision-making and were proposed for construction. In the future, the Company will continue to actively grasp the general development trend of accelerating energy transformation under the goals of "carbon peaking" and "carbon neutrality", implement the specific deployment of "1310" by the Guangdong Provincial Committee, further expand highquality new energy project resources, and build an ecologically civilized power generation enterprise.

II. Analysis On core Competitiveness

1. The largest listed company of power in Guangdong

The Company's main power generation assets are located in Guangdong Province, with a total asset size of more than 188.893 billion yuan，It is the largest listed company with state-owned assets in Guangdong Province. As of June 30, 2026, the Company, as the largest listed power company in Guangdong Province, It has a total of 39.0597 million kilowatts of unified dispatch units in the province, accounting for 14.10% of the installed capacity of Guangdong Province.

2. Strong background and resource advantages

Guangdong Energy Group, the controlling shareholder of the company, as a provincial key energy enterprise, has been actively supporting listed companies to become better and stronger by using the advantages of its resources, technology and asset scale. As the only listed company and main force of Guangdong Energy Group, the company has always been subordinated to serving the overall situation of the reform and development of Guangdong Province and Guangdong Yudean Group. It has deeply cultivated the main power industry, actively played the value discovery function and resource allocation function of the capital market, and assisted the reform and development of Guangdong Province's energy resources.

3. Comprehensive advantages of main business

Guided by the national energy development strategy, the Company implements the specific deployment of "1310" by the Guangdong Provincial Committee of the Communist Party of China, strives to build a first-class green and low-carbon listed power company, coordinates safety and development, optimizes and strengthens its coal-fired power, gas-fired power, and biomass power generation businesses, and vigorously develops new energy. The Company has a rich project pipeline and broad development prospects; with a clear core business, a rational structure, and prominent industry position and market share, it possesses strong comprehensive strength and vast development prospects.

4. Competitive advantage in electricity market

The Company's power generation units feature high parameters, large capacity, high operating efficiency, low coal consumption, stable operation, and superior environmental performance, providing it with a strong competitive advantage in the market. In the first half of 2026, the Company's cumulative grid-connected electricity volume within Guangdong Province amounted to 62.058 billion kWh, and its electricity sales scale continued to rank first in the province, with electricity sales prices better than the provincial average. The Company fully leverages its three major advantages of scale, brand, and service, utilizing its province-wide marketing service network, deep technical expertise in the power industry, and integrated resources to provide auxiliary value-added services to the power grid, such as peak shaving, frequency regulation, and reserve services, and to provide users with high-quality value-added services including comprehensive energy conservation and electricity consumption consulting.

5. Advantage of financial resources

The Company's total assets exceeded 180 billion yuan. and the cash flow of its stock business is abundant, which provides a good support for the Company's sustainable development. The Company is in good financia condition, with smooth financing channels such as bank credit, bonds and securities markets and diversified financing methods. The Company will make full use of internal and external financial resources to provide strong financial guarantee for the enterprise production and operation, key project construction and rapid development of new energy industries.

6. Regional development advantages

As the main energy source in Guangdong Province, the company shoulders the important task of helping Guangdong Province to build a clean, low-carbon, safe and efficient modern energy system. The Company wil actively integrate into the development of the Guangdong-Hong Kong-Macao Greater Bay Area, steadily promote the construction of key energy projects and new energy development in the province, actively seek to expand to regions with better resource conditions and higher power demand. Based on Guangdong, The Company will carr out the layout in the whole country, and help the implementation of the "30·60" goal.

III.Main business analysis

Found more in "I. Main businesses of the Company in the reporting period" Changes in the financial data

In RMB

Major changes to the profit structure or sources of the Company in the reporting period □ Applicable √Not applicable The profit composition or sources of the Company have remained largely unchanged during the report period.

In RMB

(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating Profit with Profit over 10%

√ Applicable □Not applicable

In RMB

Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on latest on year’s scope of period-end.

□ Applicable √Not applicable

IV. Analysis of Non-core Business

□ Applicable √Not applicable

V. Analysis of assets and liabilities

1.Significant changes in asset composition

In RMB

2.Main assets overseas

□ Applicable √Not applicable

3.Asset and Liabilities Measured by Fair Value

√ Applicable □Not applicable

In RMB

Other change Did great change take place in measurement of the principal assets in the reporting period ? □ Yes √ No

4. Restricted asset rights as of the end of this Reporting Period

On June 30, 2026, individual subsidiaries of the Group pledged the right to impose electricity charges to banks to obtain long-term loans of 3,606,305,646 yuan which: the balance of long-term loans due within one year was 373,905,838yuan (as of December 31, 2025. Some subsidiaries of the Group have pledged their electricit billing rights to a bank to obtain a long-term loan of 3,935,009,425 yuan, including: the long-term borrowings due within one year amounted to 456,142,964 yuan .

VI. Investment situation

1. General

√ Applicable □ Not applicable

2.Condition of Acquiring Significant Share Right Investment during the Report Period

√Applicable □ Not applicable

In RMB

3.Situation of the Significant Non-equity Investment Undergoing in the Report Period

□ Applicable √ Not applicable

4.Investment of Financial Asset

（1）Securities investment

√ Applicable □ Not applicable

In RMB

（2）Investment in Derivatives

□ Applicable √ Not applicable

The Company had no investment in derivatives in the reporting period.

5.Application of the raised capita

□ Applicable √ Not applicable

The Company had no application of the raised capital in the reporting period.

VII. Sales of major assets and equity

1.Situation of Significant Asset Sale

□ Applicable √ Not applicable

2.Sales of major equity

□ Applicable √ Not applicable

VIII. Analysis of the Main Share Holding Companies and Share Participating Companies

√ Applicable □ Not applicable

Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company In RMB

Acquirement and disposal of subsidiaries in the Reporting period

√ Applicable □ Not applicable

Note

(1) Affected by factors such as the continued decline in the comprehensive on-grid tariff and rising fuel prices, the operating performance of some of the Company's subordinate thermal power plants decreased year-on-year during the reporting period.

(2) During the reporting period, due to lower-than-expected utilization hours of photovoltaic power generation projects, combined with the impact of project commissioning and transfer to fixed assets, which resulted in a yearon-year increase in depreciation and interest expenses, the loss of the Company's subordinate Shache Company widened year-on-year.

(3) During the reporting period, the profitability of the Company's equity-investee finance company and Shanxi Energy Company remained largely flat year-on-year; the equity-investee fuel company, driven by an increase in purchase and sales business volume, recorded a 43% year-on-year increase in operating revenue, and the Company's investment income from equity investees grew year-on-year.

IX．Structured vehicle controlled by the Company

√Applicable □Not applicable

GF Securities issued the Guangdong Wind Power Company New Energy Infrastructure Investment Green Carbon Neutral Asset-Backed Special Plan in 2024, with the wind farm projects held by the Company's subsidiaries, Pingyuan Wind Power and Herun New Energy, as the underlying assets; China Securities Co., Ltd. issued the Guangdong Electric Power-Binhaiwan Energy Infrastructure Investment Asset-Backed Special Plan in 2025, with the natural gas power plant project held by the Company's subsidiary, Binhaiwan Company, as the underlying assets; GF Securities issued the Guangdong Wind Power Company New Energy Infrastructure Investment Green Carbon Neutral Asset-Backed Special Plan during the current period, with the new energy power generation projects held by the Company's subsidiaries, Lanshan Yuefeng and Qinglong Manchu Photovoltaic, as the underlying assets. In accordance with the "Accounting Standards for Business Enterprises No. 33 – Consolidated Financial Statements", the Company has included three structured entities that meet the definition of "control" within the scope of consolidated statement. As of June 30, 2026, the equity of the above structured entities attributable to the Group amounted to RMB 1,607,760,517; the equity of other equity holders is presented as noncontrolling interests in the consolidated statements, totaling RMB 6,554,043,895.

X. Risks facing the Company and countermeasures

1. Work safety risk

First, In the post-flood season, typhoons are characterized by higher intensity and greater impact, with frequent local meteorological disasters such as heavy rainfall and strong winds, leading to continuously escalating safety risks in the fields of flood control, typhoon prevention, and drought relief; Second, Currently, the critical period for ensuring power supply during the summer peak demand overlaps deeply with the dispatch and operation of the electricity spot market, resulting in increased frequency of deep peak shaving and start-stop operations of units, which places significant pressure on the intrinsic safety and operational stability of equipment.Third,infrastructure construction, maintenance, and technical upgrade projects are being advanced intensively, with high-risk operations covering a wide scope, and the difficulty of on-site full-process safety management and control has increased.

Response measures: First, make every effort to carry out all flood control and typhoon prevention work during the post-flood season, closely monitor rainfall and flood conditions, strengthen duty attendance, Timely obtain early warning and emergency response information, strengthen coordination and analysis, promptly activate the emergency response, and proactively implement preventive measures in advance. Second, in light of the characteristics of summer peak demand and spot electricity dispatch conditions, strengthen equipment maintenance and overhaul, daily operational inspections, and specialized technical supervision in a targeted manner, meticulously and in detail, enhance the operational reliability and condition stability of unit equipment, and ensure safe and stable power supply. Third, focus on infrastructure, maintenance, and technical upgrade projects, achieve full-coverage safety management at operation sites, strictly implement rigid systems such as high-risk operation approval, on-site attendant supervision, and safety measure verification, consolidate safety responsibilities at all levels, rigorously investigate and penalize rule-breaking operations, strengthen personnel safety training, resolutely prevent and curb all types of personal injury accidents, firmly hold the bottom line of work safety, and ensure a stable and controllable production situation.

2. Increasingly fierce competition in the electricity market

As market-oriented reforms in the electricity sector continue to deepen, competition in Guangdong Province’s generation market is becoming increasingly fierce, with traditional power generation units facing price pressures and their profit margins continuing to narrow; compounded by the high proportion of medium- and long-term transactions and falling contract prices for long-term agreements, power stations are facing significant pressure on their operating revenue and profits.

Countermeasures: First, spare no effort to expand the market. Strengthen the power generation process management, optimize the operation mode of the units, ensure the implementation of various types of electricity contracts for thermal power units, and ensure that new energy units can generate more electricity at full capacity, striving to achieve the Company's annual electricity target. Second, strengthen the analysis and judgment of the electricity market, dynamically optimize market competition strategies, continuously improve and strengthen the construction of the electricity marketing system, strive for the tariff of electricity traded in the market above the market average level, further improve the collaborative operation mechanism of the electricity spot market, and scientifically formulate the trading strategies. Third, focus on cost control. Strengthen the idea of leading an austere life, strictly control general management expenses and non production expenses, strive to control power generation and operating costs, and improve the Company's market competitiveness.

3. Risk of power structure adjustment

Under the background of carbon peaking and carbon neutrality, as well as the "30•60" goal, energy production and consumption are accelerating towards low carbon transformation. According to China's requirements of optimizing the energy structure, It will promote the transformation of coal-fired power from a basic guarantee power source to a supporting and regulating power source. The growth in installed capacity and power generation of new energy sources such as wind power and photovoltaic power will further squeeze the power generation space of traditional energy units.By the end of June 2026, the holding installed capacity of the Company's coalfired power accounted for 53.65%, which was high, with greater transformation pressure of clean and low-carbon power supply.

Countermeasures: First, steadily promote the transformation and upgrading of power supply structure, strive to achieve greater breakthroughs in structural adjustment, Solidly promote Dananhai gas and electricity project, Xinjiang Karamay photovoltaic project, Yunfu natural gas cogeneration project, Huizhou New Materials Industrial Park cogeneration project, etc., to ensure that the project investment and construction plan are completed on schedule. The second is to actively explore the development space of new energy in other provinces and regions in China, anchor high-quality development goals, and explore high-quality resources. The third is to continue to optimize carbon asset management, make full use of internal and external resources, strengthen carbon emission data management and carbon asset operation and management, promote energy conservation and carbon reduction, and realize the value-added and income of carbon assets. The Fourth is to Actively lay out the new energy storage industry, solidly advance the Zhuhai Fushan independent energy storage power station and the Guangdong Province thermal power combined frequency regulation energy storage projects, and continuously enrich the pipeline of energy storage projects.

XI. Formulation and implementation of market value management system and valuation boost plan

Whether the Company has established a market value management system

^Yes□ No

Whether the Company has disclosed plans for valuation boost.

□YesNo

In accordance with The Company Law of the People's Republic of China, The Securities Law of the People's Republic of China, the Rules for the Listing of Stocks on the Shenzhen Stock Exchange, the Regulatory Guidelines for Listed Companies No. 10 - Market Value Management and other relevant laws and regulations and the articles of association of the Company, the Company formulates the Market Value Management System of Guangdong Electric Power Development Co., Ltd. The Company will firmly establish a sense of returning shareholders, take measures to protect the interests of investors, especially small and medium-sized investors, be honest and trustworthy, standardize operations, focus on the main business, operate steadily, promote the improvement of business level and development quality with the cultivation and application of new quality productivity, and on this basis, do a good job in investor relations management, enhance the quality and transparency of information disclosure, and actively take measures to boost investor confidence when necessary, and promote the Company's investment value to reasonably reflect the Company's quality.

XII. The implementation of the action plan of "Double improvement of quality and return".

Whether the Company has disclosed the action plan of "Double improvement of quality and return".

^Yes □No

1.Focus on the main responsibility and main business, and build a first-class green and low-carbon power listed company. Since its establishment, the Company has always adhered to the business philosophy of "drawing capital from the people, using capital for electricity, and benefiting the public" and the business policy of "focusing on electricity, with diversified development", focusing on the main business of electricity. It has diversified power structure and various energy projects such as large-scale coal-fired power generation, natural gas power generation, biomass power generation, wind power generation, solar power generation, and hydropower generation, to provide reliable and clean energy to users through the power grid company. As of June 30, 2026, the Company has a controllable installed capacity of 47.7410 million kilowatts, including 24.15 million kW controlling installed capacity of coal-fired power, 11.847 million kW controlling installed capacity of gas fired power, and 8.7873 million kW controlling installed capacity of new energy such as wind power and photovoltaic power, and a total controllable installed capacity and entrusted management installed capacity of 56.4745 million kW. It is the largest listed power company in Guangdong Province in terms of installed capacity.

2. Strengthen technological leadership, actively cultivate and develop new productive forces. The Company actively implements the strategy driven by scientific and technological innovation, and orderly constructs a deep integration system of "Industry-University-Research Institution Cooperation". Since 2023, the Company has added one provincial-level certified R&D platform and three municipal level certified R&D platforms, undertaken one national key R&D project and three provincial key R&D projects; In 2026, 49 new utility model patents were granted and 11 invention patents.

3. Value shareholder returns, stabilize dividends, and share the fruits of business development. The Company attaches great importance to protecting the rights and interests of investors and adheres to the principle of "Any profit must be distributed" Except for the periodic losses incurred during 2021-2022 in fulfilling the responsibility of power and energy security, the Company has consistently adhered to distributing cash dividends to shareholders. The Company's cash dividend policy objective is normal dividend plus extra dividend. The Company's annual profit distributed in cash shall not be less than 10% of the distributable profit realized in that year, and the cumulative profit distributed in cash over the most recent three years shall not be less than 30% of the average annual distributable profit realized over the most recent three years. When the Company distributes profits, the proportion of cash dividends in such profit distribution shall be at least 20%.Since its listing in 1993, the Company has accumulated cash distributions to shareholders of RMB 13.376 billion, which fully demonstrates the Company's sound operating performance and its sincere return to investors.

4. Standardize information disclosure and strengthen investor relation management. The Company strictly adheres to the provisions of laws and regulations such as the Company Law and the Management Measures for Information Disclosure of Listed Companies, and follows the principles of "truthfulness, accuracy, completeness, timeliness, and fairness" to fulfill its information disclosure obligations in accordance with the law. Its information disclosure has been rated "A" by the Shenzhen Stock Exchange for eleven consecutive years. The Company will continue to focus on improving transparency and lead by investor demand, and enhance the pertinence and effectiveness of information disclosure through voluntary release of disclosure announcement on quarterly power generation completion information and other measures; At the same time, it will continue to strengthen investor relation management, establish a multi-channel and multi-level investor communication system through on-site investor research, investor hotlines, emails, the Shenzhen Stock Exchange's platform (irm.cninfo.com.cn), performance briefings, and other forms, increase investors' (especially the medium and small investors') understanding of the Company's production and operation, and build a positive interactive investor relationship, to provide investors with a real, transparent, and compliant Guangdong Electric Power.

IV Corporate Governance, Enviornmental and Social Responsibility

I. Changes of directors, supervisors and senior executives

^Applicable □Not applicable

II. Profit distribution plan and capitalizing of common reserves plan for the Period

□Applicable^Not applicable

The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for the semi-annual.

III. Implementation of the company’s stock incentive plan, employee stock ownership plan or other employee incentives

□Applicable^Not applicable

The Company had no implementation of the company’s stock incentive plan, employee stock ownership plan or other employee incentives in the reporting period.

IV. Environmental information disclosure situation

Whether the listed companies and their main subsidiaries are included in the list of enterprises that disclose environmental information according to law

The Company is required to comply with the disclosure requirements for the ‘Electricity Supply Sector’ set out in the Shenzhen Stock Exchange’s‘Guideline No. 3 on Self-Regulatory Supervision of Listed Companies - Industry Information Disclosure

1. The Company strictly complies with the relevant laws of People’s Republic of China in the course of its production and business operations. In the first half of 2026, the Company’s thermal power stations incurred operating expenses totalling approximately 99.86 million yuan, primarily for the purchase of desulphurisation and denitrification materials, in accordance with environmental protection policies and regulations; the Company paid environmental protection tax amounting to 51.14 million yuan.

2. In the first half of 2026, the Company’s thermal power stations recorded a comprehensive standard coa consumption for electricity generation of 287.70 grams per kilowatt-hour, with performance values for sulphur dioxide emissions of 0.052 grams per kilowatt-hour, nitrogen oxides emissions of 0.126 grams per kilowatt-hour, and particulate matter emissions of 0.008 grams per kilowatt-hour. Specifically, the desulphurisation units operated at 100 per cent capacity, with an average desulphurisation efficiency of 98.91 per cent; the denitrification units operated at an average capacity of 99.83 per cent, with an average denitrification efficiency of 88.03 per cent; and the dry dust removal units operated at 100 per cent capacity, with an average dust removal efficiency of 99.88 per cent.

3. In the first half of 2026, the Company launched a special campaign to control and reduce coal consumption in coal-fired power units, completing flow-optimisation retrofits on two units, resulting in a year-on-year reduction in coal consumption for power generation of 7.38 grams per kilowatt-hour.

4. The Company continued to focus on carbon asset management and carbon resource development, helping regulated enterprises reduce compliance costs by approximately 6 million yuan.

Details of environmental incidents involving the listed company

In the first half of 2026, the Company did not experience any environmental incidents.

V. Social responsibilities

In 2026, the Company has actively responded to the national rural revitalization strategy, thoroughly implemented the deployment of the "High-quality Development Project of 100 Counties, 1000 Towns and 100 Villages" in Guangdong Province, and actively carried out consumption assistance in combination with the local development situation, continuously explored and practiced new consumption poverty alleviation models, and set up a specia working group to solidly promote the work of helping villages in towns, accurately met the needs of the assistance areas, and continued to deliver key resources such as funds, technology and talents, so as to contribute to the rura revitalization and regional development of Guangdong Province.

The Company has selected village cadres to go to Jishui Village, Bawan Town, Lufeng City, to carry out rural revitalization work around the five major revitalizations of Jishui Village, including industry, talents, culture, ecology and organization. In 2026,

In 2026, Red Bay Power Generation Company applied for project funds of RMB 280,000 to support the Jishu Village farmland irrigation channel construction project, effectively ensuring crop irrigation water, improving grain yield and multiple cropping index, and contributing to agricultural production increase and farmers' income growth; carried out youth forest tree-planting activities to support the ecological construction of Green and Beautiful Guangdong, planting a total of 684 trees respectively in Shanwei Red Bay Economic Development Zone and Jishui Village, Bawan Town, Lufeng City, Shanwei City (a rural revitalization support point). Meanwhile, through the Alipay Ant Forest public welfare platform, it carried out "online cloud planting and breeding" activities, including tree adoption, nurturing, donation, and protection of ancient and famous trees.

1.HongHaiwan Power Generation Company counterpart helps Jishui Village, Bawan Town, Lufeng City The Company has selected village cadres to go to Jishui Village, Bawan Town, Lufeng City, to carry out rural revitalization work around the five major revitalizations of Jishui Village, including industry, talents, culture, ecology and organization. In 2026, In 2026, Red Bay Power Generation Company applied for project funds of RMB 280,000 to support the Jishui Village farmland irrigation channel construction project, effectively ensuring crop irrigation water, improving grain yield and multiple cropping index, and contributing to agricultural production increase and farmers' income growth; carried out youth forest tree-planting activities to support the ecological construction of Green and Beautiful Guangdong, planting a total of 684 trees respectively in Shanwei Red Bay Economic Development Zone and Jishui Village, Bawan Town, Lufeng City, Shanwei City (a rural revitalization support point). Meanwhile, through the Alipay Ant Forest public welfare platform, it carried out "online cloud planting and breeding" activities, including tree adoption, nurturing, donation, and protection of ancient and famous trees.

2.Jinghai Power Generation Company counterpart helps Huilai County, Jieyang City

In 2026, Jinghai Power Generation Company participated in the unveiling ceremony of the "Energy Hut" at Hailai No.2 Middle School in Jinghai Town, HuiLai County, Jieyang City. and conducted special lectures on power science popularization inside the Energy Hut, teaching knowledge on power safety and power generation environmental protection, integrating the power plant's professional knowledge into practice, which not only enhanced students' understanding of the energy sector but also strengthened the promotion of safety and environmental awareness; It invited more than 30 teachers and student representatives from Jinghai Town Centra Primary School to visit the plant area and held a public open day for environmental protection facilities, allowing them to experience the production process and environmental practices of green power up close, helping rura students broaden their horizons and increase their knowledge, and further demonstrating Jinghai Power Generation Company's green and open corporate image.

3. Shaoguan Power Plant counterpart helps Dongping Town, Ruyuan Yao Autonomous County, Shaoguan City In 2026, Shaoguan Power Plant made every effort to promote rural revitalization in Dongping Town: organized multiple field surveys to consolidate support responsibilities; completed two rounds of visits to 211 monitored households and provided targeted support to 39 key households; carried out New Year outreach activities to convey the Company's warmth; promoted agricultural product consumption through multiple channels; planned to donate RMB 100,000 to support the construction of a basketball court in Changxi Village; and over 40 volunteers from the Company carried out tree-planting activities. Through multiple measures, it continuously empowered rural revitalization.

4. Yunhe Power Generation Company counterpart helps Yaogu Town, Yunfu Yuncheng District

First, Joint construction and co-building, planting and protecting greenery to foster new social norms. The Yunhe Power Generation Company has collaborated with all the affiliated units within the group, and in collaboration with the Yaogu Town People's Government, carried out a themed event titled "Planting New Green with Youth, Nurturing the Original Aspiration with Clean Breeze". Over 80 participants, including Party members and cadres from the supporting units, members of the resident working team in Yaogu Town, and youth volunteers, took par in the event. Through practical actions, they contributed to the greening and beautification of rural areas and promoted a culture of integrity and upright conduct. Second, Deepening consumption support to help increase farmers' income. Yunhe Power Generation Company organized a consumption support activity, centrally purchasing agricultural specialty products such as sword flower, rice, and peanut oil from Shuidong Village through the Shuidong Economic Joint Cooperative of Yaogu Town, Yuncheng District, Yunfu City, with a tota procurement amount of RMB 129,000. Through market-oriented procurement, it directly benefited farmers and promoted the transformation from "blood transfusion-style support" to "blood production-style support", effectively stimulating the endogenous driving force of rural industries.

5. Zhongyue Energy Company counterpart helps Jijia Town, Leizhou City

In 2026, First, Zhongyue Energy Company, following a multi-tiered screening process that involved preliminary reporting by village committees, joint review by the Civil Affairs Office, the Agricultural Office, and the resident working team, and final approval by town leadership, identified 60 households in financial difficulty for visitation and support activities. Second, The Company conducted in-home visits, engaging in face-to-face conversations with residents, distributing care packages, and providing tailored assistance based on the specific circumstances of each household. In collaboration with the Leizhou Calligraphers Association, the Company held a Spring Festival couplet giveaway event at the small square in front of the Jijia Town Government office, under the theme "Party Leadership Empowers Rural Revitalization – Welcoming Spring with Blessings, Warming Every Home". Festive couplets were distributed free of charge to local residents, adding to the joyful atmosphere of the upcoming New Year. Third, Actively responding to the call for the ecological construction of Green and Beautiful Guangdong, it twice organized Party members and young employees to go to Jijia Town, Leizhou City to carry out activities themed on jointly building the "Hundred-Thousand-Ten-Thousand Project" support forest and on jointly building beautiful town entry corridors. Fourth, To support primary and secondary education in Jijia Town, the company conducted surveys and visits to local schools and compiled a list of educational assistance needs. Through various channels, the Company reached out to local dignitaries, charitable foundations, and public welfare organizations to secure donations of a wide range of supplies, including integrated teaching machines, desks and chairs, a reading room, books, water purifiers, dining tables, sports shoes, and clothing. In addition, it provided financial support to 15 students from low-income families and awarded 51 outstanding students, contributing to improved teaching quality and the development of campus culture. Fifth, The company conducted a comprehensive assessment of the current state of agricultural industry development in Jijia Town, Leizhou City, to establish a foundation for the formulation of targeted industrial assistance policies. It also led relevant enterprises on on-site inspections, creating conditions for increased agricultural efficiency and higher farmer incomes.

V. Important Events

I. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor, senior management personnel and other related parities.

□ Applicable √Not applicable

There is no commitment that has not been fulfilled by actual controller, shareholders, related parties, acquirers of the Company

II. Particulars about the non-operating occupation of funds by the controlling shareholder

□ Applicable √ Not applicable

No non-operational fund occupation from controlling shareholders and its related party in period.

III. External guarantee out of the regulations

□ Applicable √ Not applicable

No external guarantee out of the regulations occurred in the period.

IV. Appointment and non-reappointment (dismissal) of CPA

Whether the semi-annual financial report had been audited

□Yes √ No

The semi-annual report was not audited

V. Explanation on “non Qualified Opinion” from CPA by the Board and Supervisory Committee

□ Applicable √ Not applicable

VI. Explanation from the Board for “non Qualified Opinion” of last year’s

□ Applicable √ Not applicable

VII. Bankruptcy reorganization

□ Applicable √ Not applicable

No bankruptcy reorganization for the Company in reporting period

VIII. Litigations and arbitrations

Significant litigations and arbitrations

□ Applicable √ Not applicable

No such cases in the reporting period.

Other lawsuits

^Applicable □Not applicable

IX. Penalty and rectification

□ Applicable √ Not applicable

During the reporting period, the Company had no Penalty and rectification.

X. Integrity of the company and its controlling shareholders and actual controllers

□ Applicable √ Not applicable

XI. Material related transactions

1. Related transactions in connection with daily operation

^Applicable □Not applicable

The related transactions to the company's daily operations that occurred during the reporting period are detailed in "7. Other Major Related Transactions".

2. Related-party transactions arising from asset acquisition or sale

□Applicable √ Not applicable

No such cases in the reporting period.

3. Related party transactions of joint outbound investment

^Applicable □Not applicable

The related transactions to the company's daily operations that occurred during the reporting period are detailed in "7. Other Major Related Transactions".

4. Credits and liabilities with related parties

□Applicable √ Not applicable

No non-operational contact of related liability or debts in Period

5. Transactions with related finance company, especially one that is controlled by the Company

√ Applicable □Not applicable

Deposit business

Loan business

Credit extension or other financial services

6. Transactions with related finance company controlled by the Company

 Applicable √ Not applicable

A non-controlled financial company of the company.

7. Other significant related-party transactions

√ Applicable □Not applicable

（1）. On January 21,2026, the 9th meeting of the 11th Board of Directors of the company reviewed and passed the "Proposal on Daily Connected Transactions between the Company and Guangdong Energy Group Co., Ltd. in 2026", and this connected transaction matter was reviewed and approved for implementation by the company's first extraordinary general meeting of shareholders in 2026.

（2）. On January 21, 2026, the 9th meeting of the 11th Board of Directors of the company reviewed and passed the "Proposal on Signing the 'Financial Services Framework Agreement' with Guangdong Energy Group Finance Co., Ltd.",and the "Proposal on Signing the 'Financing Leasing Cooperation Framework Agreement' with Guangdong Energy Financing Leasing Co., Ltd." The above-mentioned connected transaction matters were reviewed and approved for implementation by the company's first extraordinary general meeting of shareholders in 2026.

（3）On June 5,2026, the 12th meeting of the 11th Board of Directors of the company reviewed and passed the " Proposal on the Investment and Construction of the Zhuhai Fushan 200MW/400MWh Independent Energy Storage Power Station Project". Zhuhai Yudean New Energy Co., Ltd. shall act as the investment entity to invest in and construct the Zhuhai Fushan 200MW/400MWh Independent Energy Storage Power Station Project. The total investment of the project is 424.42 million yuan, with the capital set at 20% of the total investment, amounting to 84.884 million yuan, After the capital increase and share expansion, the equity structure of Zhuhai Yudean New Energy Co., Ltd. will be: Guangdong Yudean New Energy Development Co., Ltd. holds 51% of the shares, and Guangdong Energy Storage Industry Development Co., Ltd. holds 49% of the shares.

Website for temporary disclosure of the connected transaction

XII. Significant contracts and execution

1.Entrustments, contracting and leasing

（1）Entrustment

√ Applicable □Not applicable

Statement of Trusteeship Situation :

According to the statement of Guangdong Energy Group on fulfilling relevant matters, and to avoid the horizontal competition and fulfill the relevant commitment of the horizontal competition, the Company signed Stock Trusteeship Agreementwith Guangdong Energy Group, wherein the shareholder's rights within the trusteeship range, except the ownership, right of earning and right of disposition, will be trusted to the Company, The custody fee collected from each company directly holding the first-class target of Guangdong Energy Group is RMB 100,000/year; The custody fee collected from each company indirectly holding the secondary target is RMB 50,000/year.published by the Company in China Securities Daily, Securities Times and http://www.cninfo.com.cn on January 13, 2018(Announcement No.2018-04). In the first half of 2026, the Company confirmed a custody income of RMB 900,000.

Gains/losses to the Company from projects that reached over 10% in total profit of the Company in reporting period

□Applicable √ Not applicable

No gains or losses to the Company from projects that reached over 10% in total profit of the Company in reporting period

(2) Contract

□ Applicable √ Not applicable

No any contract for the Company in the reporting period.

(3) Lease

□ Applicable √ Not applicable

Note

As the lessee, the company has incurred a rental fee of RMB 13.12 million in the first half of 2026,

Project which generates profit or loss reaching over 10% of total profits of the Company during the Reporting Period

□ Applicable √ Not applicable

There were no leases with a 10% or greater impact on the Company’s gross profit in the Reporting Period.

Explanation on guarantee with composite way:

Not applicable

3. Finance management on commission

□Applicable √ Not applicable

No such cases in the reporting period.

4. Other material contracts

□ Applicable √ Not applicable

No other material contracts in the period.

XIII.Particulars about researches, visits and interviews received in this reporting period √ Applicable □Not applicable

XIV. Explanation on other significant events

□ Applicable Not applicable

XV. Significant event of subsidiary of the Company

Applicable □ Not applicable

VI. Change of share capital and shareholding of Principal Shareholders

I. Changes in share capital

1. Changes in share capital

In shares

Reasons for share changed

□Applicable √Not applicable

Approval of Change of Shares

□Applicable √Not applicable

Ownership transfer of share changes

□Applicable √Not applicable

Progress on any share repurchase:

□ Applicable √ Not applicable

Progress on reducing the repurchased shares by means of centralized bidding:

□ Applicable √ Not applicable

Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of Company in latest year and period

□ Applicable √ Not applicable

Other information necessary to disclose for the company or need to disclosed under requirement from security regulators

□ Applicable √Not applicable

2. Change of shares with limited sales condition

□ Applicable √Not applicable

II. Securities issue and listing

□ Applicable √Not applicable

III. Number of shareholders and shareholding

In Shares

Information of shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares participating in the lending of shares in securities lending and borrowing business □Applicable ^Not applicable

The top 10 shareholders and the top 10 shareholders of unrestricted tradable shares have changed compared with the previous period due to the securities lending/returning,

□ Applicable √ Not applicable

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buyback agreement dealing in reporting period.

□ Yes √ No

The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy –back agreement dealing in reporting period.

IV. Changes in shareholdings of directors, supervisors and executive officers

□ Applicable √ Not applicable

Shares held by directors, supervisors and senior executives have no changes in reporting period, found more details in Annual Report 2025.

V. Changes in controlling shareholders or actual controllers

Change of controlling shareholder during the reporting period

□Applicable^Not applicable

The Company had no change of controlling shareholder during the reporting period

Change of actual controller during the reporting period

□Applicable^Not applicable

The Company had no change of actual controller during the reporting period

VI. Preferred stock

□Applicable^Not applicable

The Company had no preferred stock in the Period.

VII. Corporate Bond

^Applicable □Not applicable

I. Enterprise bond

□ Applicable √ Not applicable

No such cases in the reporting period.

II. Corporate bond

√ Applicable □ Not applicable

I. Basic information of corporate bonds

In RMB 10,000

Overdue and outstanding bonds

□ Applicable √ Not applicable

1. Debt financing instruments of non-financial enterprises In RMB10,000 Bond name Bond short name Bond code Issue day Value date Due day Bond balance Interest rate Servicing way Trading 2022 MTN (Phase I) of Guangdong Electric Power Development Co., Ltd. 22Yudean Fa MTN001 102281929.IB August 24,2022 August 26,2022 August 26,2027 60,000 2.9% Using simple interest rate on a yearly basis, regardless of compound interest. Due payments once a year, maturing debt at a time. In the final phase, interest is paid together with the principal redemption. Interbank market 2023 MTN (Phase I) of Guangdong Electric Power Development Co., Ltd.

2.. Trigger and implementation of option clauses and investor protection clauses of the issuer or investor

□ Applicable √ Not applicable

3.Adjustment of credit rating results during the reporting period

□ Applicable √ Not applicable

4. The implementation and changes of guarantee, debt repayment plan and other debt repayment guarantee measures during the reporting period and their impact on the rights and interests of bond investors

□ Applicable √ Not applicable

III. Debt financing instruments of non-financial enterprises

√ Applicable □ Not applicable

1. Debt financing instruments of non-financial enterprises

In RMB10,000

Overdue and unpaid bonds

□ Applicable √ Not applicable

2. Trigger and implementation of option clauses and investor protection clauses of the issuer or investor

□ Applicable √ Not applicable

3.Adjustment of credit rating results during the reporting period

□ Applicable √ Not applicable

4.The implementation and changes of guarantee, debt repayment plan and other debt repayment guarantee measures during the reporting period and their impact on the rights and interests of bond investors

□ Applicable √ Not applicable

IV. Convertible bond

□ Applicable √ Not applicable

No such cases in the reporting period

V. The loss within the scope of consolidated statements in the reporting period exceeded 10% of the net assets at the end of the previous year

□ Applicable √ Not applicable

VI. Main accounting data and financial indicators of the Company in recent two years by the end of the reporting period

In RMB10,000

VIII. Financial Report

I. Audit report

Has this semi-annual report been audited?

□ Yes √ No

The semi-annual financial report has not been audited.

II. Financial statements

Currency unit for the statements in the notes to these financial statements: RMB

1. Consolidated balance sheet

Prepared by：Guangdong Electric Power Development Co., Ltd. June 30,2026

In RMB

Legal representative ：Zheng Yunpengn Person-in-charge of the accounting work：Liu Wei

Person-in -charge of the accounting organ：Meng Fei

2.Parent Company Balance Sheet

In RMB

3.Consolidated Income statement

In RMB

As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before combination while 0 Yuan achieved last period.

Legal representative ：Zheng Yunpeng

Person-in-charge of the accounting work：Liu Wei

Person-in -charge of the accounting organ：Meng Fei

4. Income statement of the Parent Company

5. Consolidated Cash flow statement

In RMB

6. Cash Flow Statement of the Parent Company

In RMB

7. Consolidated Statement on Change in Owners’ Equity Amount in this period

In RMB

Amount in last year

In RMB

8.Statement of change in owner’s Equity of the Parent Company

Amount in this period

In RMB

Amount in last year In RMB

III．Basic Information of the Company

Guangdong Electric Power Development Co., Ltd. (hereinafter “Guangdong Electric Power”, “the Company”) is a limited liability company jointly established by Guangdong Electric Power Holding Company, China Construction Bank, Guangdong Province Trust Investment Company, Guangdong Power Development Co., Ltd., Guangdong International Trust, and China Guangfa Bank (currently named as Guangdong Guangkong Group Co., Ltd.). The address of the Company's registered office and head office is F33-F36 South Tower Building of Yudean Square on 2nd Tianhe East Road, Guangzhou, Guangdong Province, the People's Republic of China ("the PRC"). The Company's parent company is Guangdong Energy Group Co., Ltd. ("GEGC") and its ultimate controlling shareholder is the State-owned Assets Supervision and Administration Commission of the People's Government of Guangdong Province.

The Company’s issuing RMB ordinary shares (“A-share”) and domestic listed foreign shares (“B-share”) are listed for transactions in Shenzhen Stock Exchange respectively on 26 November 1993 and 28 June 1995. On 30 June 2025, the total share capital of the Company is RMB 5,250,283,986 with par value of RMB 1 each.

The Company and its subsidiaries (collectively referred to as "the Group") are principally engaged in the businesses of developing and operating electric power projects in Guangdong Province, Yunnan Province, Xinjiang Uygur Autonomous Region, Hunan Province, Guangxi Zhuang Autonomous Region and Inner Mongolia Autonomous Region.

The financial statement has been approved for issue by the Company’s Board of Directors on August 24,20 26.

For the Consolidation scope changed of the Group, please refer to IX and X(Equity in other entities

IV.Basis for the preparation of financial statements

1.Basis for the preparation

The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises and corresponding application guidance, interpretations and other related provisions issued by the Ministry of Finance (collectively, "Accounting Standards for Business Enterprises"). In addition, the Company also disclosed the relevant financial information in accordance with the Explanatory Announcement No. 15 on Information Disclosure for Companies Offering Their Securities to the Public —General Requirements for Financial Reporting (2023 version) issued by the China Securities Regulatory Commission.

The financial statements are prepared on a going concern basis. The Company adopts the accrual basis of accounting. Except for certain financial instruments, the financial statements are prepared under the historical cost. In the event that impairment of assets occurs, a loss allowance is made accordingly in accordance with the relevant regulations.

2. Continuous operation.

This financial statement is prepared on a going-concern basis.

When preparing the financial statements for this year, the Board of Directors of the Company made a full evaluation on the Company's going-concern ability for 12 months from the end of the reporting period, and the evaluation results showed no major doubts about its going-concern ability.

V. Significant accounting policies and accounting estimates

Specific accounting policies and accounting estimates tips:

The Company determines specific accounting policies and accounting estimates based on the characteristics of production and operation, which are mainly reflected in the measurement of expected credit losses(“ECL”) of receivables and contract assets, costing of inventory, depreciation of fixed assets, amortization of intangible assets and right-of-use assets. Specific accounting policies are detailed in Notes V.11, Notes V.17, Notes V.24, Notes V.29, Notes V.30, Notes V.37, Notes V.40, and Notes V.41.

Details of the Group’s critical judgements, critical accounting estimates and key assumptions used in determining significant accounting policies are set forth in Note V.42.

1.Complying with the statements in Accounting Standards for Business Enterprises

The financial Report and statements are prepared with compliance to the requirement of the Enterprise Accounting Standard. They reflect the financial position as of June 30, 2025 as well as the business performance and cash flow situation in the first half of 2026 of the Company frankly and completely.

2. Accounting period

Fiscal year is dated from Gregorian calendar Jan., 1 to Gregorian calendar December, 31.

The accounting of the financial statements during the period starts from January 1, 2026 to 6 months ended June 30,2026.

3.Operating cycle

The business cycles for principal activities are usually less than 12 months.

4.Standard currency for bookkeeping

The Company and domestic subsidiaries use Renminbi (RMB) as their recording currency. The currency used by the Company in preparing these financial statements is Renminbi (RMB).

5.Determination method and selection basis of importance standard

^Applicable □Not applicable

6. Accounting process method of enterprise consolidation under same and different controlling.

(1) Business combinations involving enterprises under common control

The consideration paid and net assets obtained by the Company in a business combination are measured at the carrying amount. If the acquiree is acquired from a third party by the ultimate controlling party in a prior year, the consideration paid and net assets obtained by the Company are measured based on the carrying amounts of the acquiree’s assets and liabilities (including the goodwill arising from the acquisition of the acquiree by the ultimate controlling party) presented in the consolidated financial statements of the ultimate controlling party. The difference between the carrying amount of the net assets obtained from the combination and the carrying amount of the consideration paid for the combination is treated as an adjustment to capital surplus (share premium). If the capital surplus (share premium) is not sufficient to absorb the difference, the remaining balance is adjusted against retained earnings

Realize business combinations under the same control through multiple transactions in stages

The assets and liabilities acquired by the acquirer from the acquiree in the merger are measured at the book value in the consolidated financial statements of the ultimate controlling party on the merger date. The difference between the sum of the book value of the investments held before the merger and the book value of the newly paid consideration on the merger date, and the book value of the net assets acquired in the merger, is adjusted to the capital reserves. If the capital reserves are insufficient to offset, the retained earnings are adjusted. For long-term equity investments held by the acquirer before obtaining control of the acquiree, the related profits and losses, other comprehensive income, and other changes in owner's equity recognized between the date of acquiring the original equity and the later of the dates when both the acquirer and the acquiree are under the same ultimate control, and up to the merger date, should be offset against the beginning retained earnings or current profits and losses during the comparative reporting period.

(2) Business combinations not involving enterprises under common control

For business combinations involving enterprises not under common control, the Company adopts concentration test to judge whether the acquired production and operation activities or asset groups constitute a business. If the concentration test is passed, the Company conducts accounting treatment according to the relevant asset purchase principle; if the concentration test fails, the Company will further judge whether it constitutes a business based on whether the relevant groups obtained in the merger have at least one input and one substantive processing process, and the combination of the two has a significant contribution to the output capacity.

The cost of combination and identifiable net assets obtained by the Group in a business combination are measured at fair value at the acquisition date. Where the cost of the combination exceeds the Group’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognised as goodwill; where the cost of combination is lower than the Group’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognised in profit or loss for the current period.

Realize business combinations not under common control through multiple transactions and steps

The cost of combination is the sum of the consideration paid on the acquisition date and the fair value of the equity already held by the acquirer in the acquiree on the acquisition date. For the equity already held by the acquirer in the acquiree before the acquisition date, it is remeasured at its fair value on the acquisition date, and the difference between the fair value and its book value is recognized in the current investment income. The equity already held by the acquirer in the acquiree before the acquisition date involving other comprehensive income and other changes in owner's equity is transferred to the current income on the acquisition date, except for other comprehensive income arising from the remeasurement of net liabilities or net assets of the defined benefit plan by the investee and other comprehensive income related to non-trading equity instrument investments originally designated to be measured at fair value with changes recognized in other comprehensive income.

(3) Handling of transaction costs in business combinations

The intermediary fees incurred for auditing, legal services, evaluation and consultation, as well as other related management expenses for the purpose of corporate mergers, are recorded profit or loss profit or loss for the current period. When they are incurred. The transaction costs of equity securities or debt securities issued as merger consideration are included in the initial recognition amount of the equity securities or debt securities.

7. Judgment criteria for control and method for preparing consolidated financial statements

(1) Judgment criteria for control

The scope of consolidation for consolidated financial statements is determined on a control basis. Control refers to the power that the Company has over the invested entity, the variable returns it enjoys through participating in the relevant activities of the invested entity, and the ability to use its power over the invested entity to affect its return amount. When changes in relevant facts and circumstances lead to changes in the relevant elements involved in the definition of control, the Company will conduct a reassessment.

(2) Preparation of consolidated financial statements

The consolidated financial statements are prepared by the Company based on the financial statements of the Company and its subsidiaries and other relevant information. When preparing the consolidated financial statements, the accounting policies and accounting periods of the subsidiaries shall be consistent with those established by the Company. All significant intra-company balances and transactions shall be eliminated.

Where a subsidiary or business was acquired during the reporting period, through a business combination involving entities under common control, the financial performance and the cash flows of the subsidiary are included in the consolidated income statement and consolidated cash flow statement of the Company as if the combination had occurred at the date that the ultimate controlling party first obtained control.

Where a subsidiary or business was acquired during the reporting period, through a business combination involving entities not under common control, its revenue, expenses and profit from the acquisition date to the end of the reporting period are included in the consolidated income statement and its cash flows are included in the consolidated cash flow statement.

Minority interests of the subsidiary that is not attributable to the Company are presented separately in the shareholders’ equity section within the consolidated balance sheet. Net profit or loss attributable to noncontrolling shareholders is presented separately as minority interests below the net profit within the consolidated income statement. When the amount of loss for the current period attributable to the non controlling shareholders of a subsidiary exceeds the non-controlling shareholders’ share of the opening owners equity of the subsidiary, the excess is adjusted to minority interests

(3) Acquire the subsidiaries’ non-controlling interests

Where the Company acquires a non-controlling interest from a subsidiary’s non-controlling shareholders or disposes of a portion of an interest in a subsidiary without a change in control, the difference between the proportion interests of the subsidiary’s net assets being acquired or disposed and the amount of the consideration paid or received is adjusted to the capital reserve in the consolidated balance sheet, with any excess adjusted to retained earnings.

(4) Handling of losing control over a subsidiary

When the Company loses control over a subsidiary due to partial disposal of equity investment or other reasons, the remaining equity interests is re-measured at its fair value at the date when the control is lost. The resulting gain or loss is the total of consideration received from the disposal of equity investment and the remaining equity investment at its fair value, deducted the total of proportion interests of the subsidiary’s net asset and goodwill calculated based on the original shareholding ratio since the acquisition date. Any resulting gain or loss is recognized as investment income for the current period

Other comprehensive income related to the equity investment in the original subsidiary is accounted for on the same basis as the direct disposal of related assets or liabilities by the original subsidiary upon the loss of control. All other changes in owner's equity related to the original subsidiary and accounted for using the equity method are transferred to the current period profit or loss upon the loss of control.

8. Classification and Accounting Treatment for Joint Arrangement

A joint arrangement is an arrangement of which two or more parties have joint control. The Company classifies joint arrangements into joint operations and joint ventures.

(1) Joint operation

A joint operation is a joint arrangement whereby the Company has rights to the assets, and obligations for the liabilities, relating to the arrangement. The Company is not involved in joint operations.

(2) Joint venture

A joint venture is a joint arrangement whereby the Company has rights to the net assets of the arrangement. The Company adopts equity method of long-term equity investment to account for its investment in joint venture.

9. Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on demand, and short term and highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

10.Foreign currency transactions

Foreign currency transactions are translated to the functional currency of the Company at the spot exchange rates on the dates of the transactions.

Monetary items denominated in foreign currencies are translated at the spot exchange rate at the balance sheet date. The resulting exchange differences between the spot exchange rate at balance sheet date and the spot exchange rate at initial recognition or at the previous balance sheet date are recognized in profit or loss. Nonmonetary items that are measured at historical cost in foreign currencies are translated to functional currency using the spot exchange rate at the transaction date. Non-monetary items that are measured at fair value in foreign currencies are translated using the spot exchange rate at the date when the fair value is determined. The resulting exchange differences are recognized in profit or loss or other comprehensive income according to the nature of the non-monetary items.

11.Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or an equity instrument of another entity.

(1) Recognition and derecognition of financial instruments

A financial asset or a financial liability is recognized when the Company becomes a party to the contractual provisions of a financial instrument.

A financial asset is derecognised when one of the following criteria is met:

The contractual rights to the cash flows from the financial asset expire; or

The financial asset has been transferred and met the following conditions for derecognition.

A financial liability (or partially) is derecognized when its contractual obligation (or partially) is ceased. When the Company (debtor) enters into an agreement with the creditor to replace the existing financial liability with a new assumed financial liability, and contractual terms are different in substance, the existing financial liability is derecognized while a new financial liability is recognized.

Conventionally traded financial assets are recognized and derecognized at the transaction date.

(2) Classification and measurement of financial assets

Based on the Company’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets, financial assets are classified as: financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive income and financial assets measured at fair value through profit or loss.

At initial recognition, the financial assets are measured at fair value. For financial assets measured at fair value through profit or loss, the transaction costs are expensed in profit or loss for the current period. For other types of financial assets, the transaction costs are included in the initially recognised amounts. Accounts receivable arising from sale of products or rendering of services (excluding or without regard to significant financing components), the Company recognizes the amount of consideration that it is expected to be entitled to receive as the initially recognised amounts.

Financial assets measured at amortized cost

The Company classifies financial assets that meet all of the following conditions and are not designated as financial assets at fair value through profit or loss as financial assets measured at amortized cost:

The objective of the Company’s business model is to hold the financial assets to collect the contractual cash flows;

The contractual terms of the financial asset stipulate that the cash flows generated on specific dates are solely payments on the principal and interest based on the outstanding principal amount.

After initial recognition, such financial assets are measured at amortized cost using the effective interest method. Gains or losses arising from financial assets measured at amortized cost that are not part of any hedging relationship are recognized in the current period profit or loss when they are derecognized, amortized using the effective interest method, or recognized as impaired.

Financial assets measured at fair value through other comprehensive income

The Company classifies financial assets that meet all of the following conditions and are not designated as financial assets measured at fair value through profit or loss, as financial assets measured at fair value through in other comprehensive income:

The business model of our company for managing this financial asset aims both at collecting contractual cash flows and at selling the financial asset;

The contractual terms of the financial asset stipulate that the cash flows generated on specific dates are solely payments on the principal and interest based on the outstanding principal amount. After initial recognition, subsequent measurements of such financial assets are measured at fair value. Interests calculated using the effective interest method, impairment losses or gains, and exchange gains or losses are recognized in the current period profit or loss, while other gains or losses are recorded in other comprehensive income. Upon derecognition, the cumulative gains or losses previously recorded in other comprehensive incomeare transferred out of other comprehensive income and recognized in the current period profit or loss.

Financial assets measured at fair value through profit or loss

In addition to the financial assets at amortized cost and those measured at fair value through other comprehensive income as mentioned above, the Company categorizes all other financial assets as those measured at fair value through profit or loss. Upon initial recognition, in order to eliminate or significantly reduce accounting mismatches, the Company irrevocably designates some financial assets that should be measured at amortized cost or at fair value through in other comprehensive income as financial assets measured at fair value through profit or loss.

After initial recognition, subsequent measurements of such financial assets are measured at fair value, and any gains or losses (including interest and dividend income) arising therefrom are recorded in the current period profit or loss, unless the financial asset is part of a hedging relationship.

However, for non-trading equity instrument investments, the Company irrevocably designates them as financial assets measured at fair value through other comprehensive income upon initial recognition. This designation is made on an individual investment basis, and the relevant investments meet the definition of equity instruments from the perspective of the issuer.

After initial recognition, subsequent measurements of such financial assets are measured at fair value. Dividend income that meets the criteria is recorded in profit or loss, while other gains or losses and changes in fair value are recorded in other comprehensive income. Upon derecognition, the cumulative gains or losses previously recorded in other comprehensive income are transferred out of other comprehensive income and recorded in retained earnings.

The business model for managing financial assets refers to how the company manages its financial assets to generate cash flows. The business model determines whether the source of cash flows from the financial assets managed by the company is from the collection of contractual cash flows, the sale of financial assets, or a combination of both.

The company determines its business model for managing financial assets based on objective facts and the specific business objectives for managing financial assets determined by key management personnel. The Company evaluates the contractual cash flow characteristics of financial assets to determine whether the contractual cash flows generated by the relevant financial assets on a specific date are solely payments of principal and interest based on the outstanding principal amount. The principal refers to the fair value of the financial asset at initial recognition; interest includes consideration for the time value of money, credit risk associated with the outstanding principal amount during a specific period, as well as other basic borrowing risks, costs, and profits. In addition, the Company evaluates contract terms that may lead to changes in the time distribution or amount of contractual cash flows of financial assets to determine whether they meet the requirements of the aforementioned contractual cash flow characteristics.

Only when the company changes its business model for managing financial assets, all affected relevant financial assets will be reclassified on the first day of the first reporting period following the change in business model. Otherwise, financial assets shall not be reclassified after initial recognition.

(3) Classification and measurement of financial liabilities

The financial liabilities of the Company are classified at initial recognition as either financial liabilities measured at fair value through profit or loss, or financial liabilities measured at amortized cost. For financial liabilities not classified as measured at fair value through profit or loss, the transaction costs are included in their initially recognised amounts.

Financial liabilities measured at fair value through profit or loss

Financial liabilities measured at fair value through profit or loss include trading financial liabilities and financial liabilities designated at initial recognition as measured at fair value through profit or loss. For such financial liabilities, subsequently measured at fair value, and gains or losses arising from changes in fair value, as well as dividend and interest expenses related to these financial liabilities, are recognized in current profit or loss.

Financial liabilities measured at amortized cost

Other financial liabilities are subsequently measured at amortized cost using the effective interest method, and gains or losses arising from derecognition or amortization are recognized in the current period profit or loss.

Distinction between financial liabilities and equity instruments

A financial liability is recognized if one of the following conditions is satisfied::

① A contractual obligation to deliver cash or another financial asset to another entity;

② A contractual obligation to exchange financial assets or financial liabilities with another entity under potentially unfavorable conditions;

② A non-derivative instrument contract that will or may be settled in the Company’s own equity instruments and the Company is obliged to deliver a variable number of the Company’s own equity instruments;

④ A derivative instrument contract that will or may be settled in the Company’s own equity instruments in the future, except for a derivative instrument contract that is settled by the exchange of a fixed number of the Company’s own equity instruments for a fixed amount of cash or other financial assets.

An equity instrument is a contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

If the Company does not have an unconditional right to avoid delivering cash or another financial asset to settle a contractual obligation, the obligation meets the definition of a financial liability.

If a financial instrument will or may be settled by the Company’s own equity instruments, classification of the instrument depends on whether the Company’s own equity instruments work as the replacement of cash or other financial instrument, or represent the investor’s residual interest in the Company’s assets after deducting all its liabilities. In the former case, the instrument is classified as a financial liability; in the latter case, the instrument is classified as an equity instrument.

(4) Fair value of financial instruments

For the determination of fair value of financial assets and financial liabilities, please refer to Note III.12.

(5) Impairment of financial assets

Based on ECL, the Company performs impairment accounting treatment on the following items and recognizes loss provisions:

Financial assets measured at amortized cost;

Receivables and debt instrument investments measured at fair value through other comprehensive income;

Contract assets as defined in "Accounting Standards for Business Enterprises No. 14 - Revenue"; Lease receivables;

Financial guarantee contract (except for those measured at fair value through profit and loss, the transfer of financial assets does not meet the conditions for derecognition or continue to involve in the transferred financial assets)

Measurement of ECL

ECL refers to the weighted average of credit losses for financial instruments, calculated by weighting the risk of default occurring. Credit loss is defined as the difference between all contractual cash flows receivable by the entity under the agreement and all expected cash flows to be collected, discounted at the original effective interest rate. This represents the present value of all cash shortfalls.

The Company measures the expected credit losses of financial instruments at different stages separately. The financial instrument is at the first stage when there is no significant increase in credit risk since initia recognition. The Company measures the loss allowance according to the expected credit losses in the next 12 months. The financial instrument is at the second stage when there is significant increase in credit risk since initial recognition and credit loss is not yet occurred. The Company then measures the loss allowance according to expected credit losses over the lifetime of a financial instrument. The financial instrument is at the third stage when there is significant increase in credit risk since initial recognition and credit loss occurred. The Company then measures the loss allowance according to expected credit losses over the lifetime of a financial instrument. For financial instrument that has low credit risk at the balance sheet date, the Company assumes there is no significant increase in its credit risk since initial recognition. The Company measures the loss allowance according to the expected credit losses in the next 12 months.

Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument. Expected credit losses in the next 12 months are the portion of expected losses that result from default events that are possible within the 12 months after the balance sheet date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating expected credit losses is the maximum contractual period (including extension options) over which the Company is exposed to credit risk. For the financial instruments at the first and second stage as well as financial instruments that have low credit risk, the Company calculates the interest income based on the book value without loss allowance deducted and effective interest rate. While for the financial instruments at the third stage, the Company calculates the interest income based on the amortized cost of the book value less loss allowance and effective interest rate. For accounts receivable such as notes receivable, accounts receivable, accounts receivable financing, other receivables, and contract assets, if the credit risk characteristics of a particular customer are significantly different from those of other customers in the group, or if there is a significant change in the credit risk characteristics of that customer, the company will individually accrue bad debt reserves for that account receivable. Apart from the account receivables for which bad debt reserves are individually accrued, the company divides account receivables into groups based on credit risk characteristics and calculates bad debt reserves on a group basis.

Notes receivable, accounts receivable, contract assets, and other receivables

For notes receivable, accounts receivable, and contract assets, regardless of whether there is a significant financing component, the Company consistently measures their loss provisions at an amount equivalent to the ECL over the entire duration.

For various financial assets whose ECL are calculated on an individual basis, their credit risk characteristics are significantly different from those of other financial assets within the same category. When it is not possible to assess the ECL of an individual financial asset at a reasonable cost, the Company categorizes accounts receivable into several groups based on credit risk characteristics. The ECL are calculated on a group basis, and the basis and method for determining the group are as follows:

For notes receivable and contract assets classified as groups, the Company calculates ECL by referencing historical credit loss experience, considering current conditions, and forecasting future economic conditions, based on the exposure to default risk and the expected credit loss rate over the entire duration.

For accounts receivable classified into groups, the Company calculates ECL by referring to historical credit loss experience, combining current conditions with predictions of future economic conditions, and using default risk exposure and expected credit loss rate over the entire duration. For other receivables classified into portfolios, the Company calculates ECL by referring to historical credit loss experience, combining current conditions with predictions of future economic conditions, and using default risk exposure and expected credit loss rate within the next 12 months or over the entire duration.

The Company recognises the loss provision made or reversed into profit or loss for the current period.

Debt investment, other debt investments

For debt investments and other debt investments, the Company calculates ECL based on the nature of the investment, various types of counterparties and risk exposures, through default risk exposures and expected credit loss rates within the next 12 months or throughout the entire duration

Assessment of significant increase in credit risk

In assessing whether the credit risk of a financial instrument has increased significantly since initial recognition, the Company compares the risk of default occurring on the financial instrument assessed at the balance sheet date with that assessed at the date of initial recognition. When determining whether the credit risk has increased significantly since initial recognition, the Company considers the reasonable and supportable information that is available without undue cost or effort, including forward-looking information. In particular, the following information is taken into account:

Debtors fail to make payments of principal or interest on their contractually due dates;

An actual or expected significant deterioration in a financial instrument’s external or internal credit rating (if available);

An actual or expected significant deterioration in the operating results of the debtor; and Existing or anticipated changes in the technological, market, economic or legal environment that have a significant adverse effect on the debtor’s ability to meet its obligation to the Company.

Depending on the nature of the financial instruments, the Company assesses whether there is a significant increase in credit risk on either an individual basis or a collective basis. When the assessment is performed on a collective basis, the financial instruments are classified into groups based on shared credit risk characteristics, such as past due status and credit risk ratings.

If the overdue period exceeds 30 days, the Company determines that the credit risk of the financial instrument has significantly increased.

Credit-impaired financial assets

At each balance sheet date, the Company assesses whether financial assets measured at amortized cost and debt investments measured at fair value through other comprehensive income are creditimpaired. A financial asset is credit-impaired when one or more events that have adverse impact on the expected future cash flows of financial asset have occurred. Evidence that a financial asset is creditimpaired includes the following observable information:

Significant financial difficulty of the debtor or issuer;

A breach of contract by the debtor, such as default or overdue in interest or principal payments; For economic or contractual reasons relating to the debtor’s financial difficulty, the Company having granted to the debtor a concessions that would not otherwise consider;

It is probable that the debtor will enter into bankruptcy or other financial restructuring;

The disappearance of an active market for that financial asset because of issuer’s or debtor’s financial difficulties.

Presentation of allowance for expected credit losses

In order to reflect the change of the credit risk of financial instruments since the initial recognition, the Company re-measures the expected credit losses at each balance sheet date. Any increase or recovered amount of the loss allowance which generated shall be recognized as loss allowance or gain in the profit or loss for the current period. For financial asset measured at amortized cost, the loss allowance shall offset against the carrying amount of the financial asset as stated in the balance sheet; for the debt investment measured at fair value through other comprehensive income, the Company recognizes its loss allowance in other comprehensive income and does not offset against the carrying amount of the financial asset.

Write-off

The gross carrying amount of a financial asset is written off (either partially or entirely) to the extent that there is no realistic prospect of recovery of the contractual cash flows. A write-off constitutes a derecognition event. This is generally the case when the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

Subsequent recoveries of an asset that was previously written off are recognized as a reversal of impairment in profit or loss in the period when the recovery occurs.

(6) Transfer of financial assets

Transfer of financial assets is the transfer or delivery of financial assets to another party (the transferee) other than the issuer of financial assets.

A financial asset is derecognized if the Company transfers substantially all the risks and rewards of ownership of the financial asset to the transferee. A financial asset is not derecognized if the Company retains substantially all the risks and rewards of ownership of the financial asset.

The Company neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset, the accounting treatments are as following: if control over the financial assets is surrendered, the Company derecognizes the financial assets and recognizes any assets and liabilities arose; if the Company retains the control of the financial assets, financial assets to the extent of the continuing involvement in the transferred financial assets by the Company as well as any relating liability.

(7) Offset between financial assets and financial liabilities

When the Company has an enforceable legal right to offset the recognized financial assets against the financial liabilities, and the Company plans to settle by net amount or realize the financial assets and settle the financial liabilities, the amount after being offset will be presented in the balance sheet. Otherwise, financial assets and financial liabilities are presented separately in the balance sheet and not allowed to offset against each other.

12.Note receivable

See Note V (11) Financial Instruments for details.

13.Account receivable

See Note V (11) Financial Instruments for details.

14.Financing receivable

Not applicable

15.Other account receivable

Determination method of expected credit loss of other receivables and accounting treatment method See Note V (11) Financial Instruments for details.

16.Contract assets

See Note V (11) Financial Instruments for details.

17.Inventories

18.Held-for-sale assets Not applicable

19.Creditor's rights investment Not applicable

20.Other Creditor's rights investment Not applicable

21.Long-term account receivable

See Note V (11) Financial Instruments for details.

22.Long-term equity investments

Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries, and the Company’s long-term equity investments in its joint ventures and associates. If the Company is able to exert significant influence over the invested entity, it is considered as the Company's associated enterprise.

(1) Determination of initial investment cost

For long-term equity investments acquired through a business combination involving enterprises under common control, the investment cost shall be the absorbing party’s share of the carrying amount of owners’ equity of the party being absorbed in the consolidated financial statements of the ultimate controlling party at the combination date; for long-term equity investments acquired through a business combination involving enterprises not under common control, the investment cost shall be the combination cost.

For long-term equity investments acquired not through a business combination: for long-term equity investments acquired by payment in cash, the initial investment cost shall be the purchase price actually paid; for long-term equity investments acquired by issuing equity securities, the initial investment cost shall be the fair value of the equity securities issued.

(2)Subsequent measurement and recognition of profit or loss

Investments in subsidiaries are accounted for using the cost method, unless the investment meets the conditions for held-for-sale; investments in associates and joint ventures are accounted for using the equity method.

For long-term equity investments accounted for using the cost method, except for the actual payment made at the time of investment or the cash dividends or profits included in the consideration that have been declared but not yet distributed, the cash dividends or profits declared and distributed by the investee are recognized as investment income in profit or loss for the current period.

For long-term equity investments accounted for using the equity method, where the initial investment cost exceeds the Company’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, the investments is initially measured at that cost; where the initial investment cost is less than the Company’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, the difference is included in profit or loss for the current period and the cost of the long-term equity investment is adjusted upwards accordingly

When accounting using the equity method, investment income and other comprehensive income are recognized based on the share of net profit or loss and other comprehensive income realized by the invested entity that should be enjoyed or shared, and the book value of the long-term equity investments is adjusted accordingly. The portion of profits or cash dividends declared and distributed by the invested entity that should be enjoyed is calculated, and the book value of the long-term equity investments is correspondingly reduced. For other changes in the owner's equity of the invested entity other than net profit or loss, other comprehensive income, and profit distribution, the book value of the long-term equity investment is adjusted and included in capital reserves (other capital reserves). When recognizing the share of net profit or loss of the invested entity that should be enjoyed, the fair value of the identifiable assets and other items of the invested entity at the time of investment acquisition is used as the basis, and the net profit of the invested entity is adjusted according to the accounting policies and accounting periods of the company before recognition.

If, due to reasons such as additional investments, the investor is able to exert significant influence or joint control over the investee but does not constitute control, on the transition date, the sum of the fair value of the original equity and the newly added investment cost shall be regarded as the initial investment cost accounted for using the equity method. If the original equity is classified as a nontrading equity instrument investment measured at fair value with changes recognized in other comprehensive income, the cumulative fair value changes previously recognized in other comprehensive income related to it shall be transferred to retained earnings when accounting for it using the equity method.

If joint control or significant influence over the investee is lost due to reasons such as the disposal of a portion of equity investment, the remaining equity after disposal shall be accounted for in accordance with "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments" on the date when joint control or significant influence is lost. The difference between fair value and book value shall be recorded in the profit or loss for the current period. For other comprehensive income recognized from the original equity investment accounted for using the equity method, accounting treatment shall be conducted on the same basis as the direct disposal of related assets or liabilities by the investee when the equity method is no longer used for accounting. All other changes in owner's equity related to the original equity investment shall be transferred to the profit or loss for the current period.

If control over the invested entity is lost due to reasons such as the disposal of a portion of equity investment, and the remaining equity after disposal can jointly control or exert significant influence over the invested entity, the equity method shall be adopted for accounting, and the remaining equity shall be adjusted as if it had been accounted for using the equity method from the time of acquisition. If the remaining equity after disposal cannot jointly control or exert significant influence over the invested entity, accounting treatment shall be conducted in accordance with the relevant provisions of "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments", and the difference between its fair value and book value at the date of loss of control shall be recognized in profit or loss for the current period.

If the Company's shareholding ratio decreases due to capital increases by other investors, resulting in the loss of control but still enabling joint control or significant influence over the invested entity, the Company shall recognize its share of the net assets increased by the invested entity due to the capital increase based on the new shareholding ratio. The difference between this share and the original book value of the long-term equity investment corresponding to the decreased shareholding ratio shall be recorded in profit or loss for the current period. Subsequently, adjustments shall be made using the equity method as if the new shareholding ratio had been applied from the time of investment acquisition.

The unrealized internal transaction losses and gains between the Company and its associated enterprises and joint ventures are calculated based on the shareholding ratio and attributed to the Company. The investment losses and gains are recognized on an offset basis. Any losses resulting from transactions between the Company and its investees, which are attributable to asset impairment losses are not eliminated.

(1) Basis for determining existence of control, joint control or significant influence over investees

Joint control is the agreed sharing of control over an arrangement, and the decision of activities relating to such arrangement requires the unanimous consent of the Company and other parties sharing control. In determining whether joint control exists, the first step is to assess whether all participating parties or a combination of participating parties collectively control the arrangement. The second step is to determine whether decisions regarding the relevant activities of the arrangement must be unanimously agreed upon by these collectively controlling parties. If all participating parties or a group of participating parties must act in unison to decide on the relevant activities of an arrangement, it is considered that all participating parties or a group of participating parties collectively control the arrangement. If there are two or more combinations of participating parties capable of collectively controlling an arrangement, it does not constitute joint control. When determining whether joint control exists, protective rights enjoyed are not considered.

Significant influence is the power to participate in making the decisions on financial and operating policies of the investee, but is not control or joint control over making those policies. When determining whether the investor can exert significant influence on the invested entity, the consideration includes the voting shares directly or indirectly held by the investor in the invested entity, as well as the impact of the current executable potential voting rights held by the investor and other parties after assuming that they are converted into equity in the invested entity, including the impact of the current convertible warrants, share options, and convertible corporate bonds issued by the invested entity.

When the Company directly or indirectly, through its subsidiaries, holds more than 20% (inclusive) but less than 50% of the voting shares of the invested entity, it is generally considered to have significant influence over the invested entity, unless there is clear evidence indicating that it cannot participate in the production and operation decisions of the invested entity in such circumstances and does not exert significant influence. When the Company holds less than 20% (exclusive) of the voting shares of the invested entity, it is generally not considered to have significant influence over the invested entity, unless there is clear evidence indicating that it can participate in the production and operation decisions of the invested entity in such circumstances and exert significant influence.

(2) Impairment testing method and impairment provision method

The method for calculating asset impairment for investments in subsidiaries, associates, and joint ventures is provided in the Note V. 30.

23. Investment properties

The measurement mode of investment property

The measurement by the cost method

Depreciation or amortization method

Investment property refers to real estate held for the purpose of generating rentals or capital appreciation, or both. The investment properties of the Company include land use rights that have been leased out, land use rights held for transfer after appreciation, and buildings that have been leased out.

The investment properties of the Company are initially measured at their acquisition costs and are subject to depreciation or amortization on a regular basis in accordance with the relevant provisions for fixed assets or intangible assets. The estimated useful lives, the net residual values that are expressed as a percentage of cost and the annual depreciation (amortization) rates of investment properties are as follows:

The investment property’s estimated useful life, estimated net residual value and depreciation (amortization) method applied are reviewed and adjusted as appropriate at each year-end.

When an investment property is transferred to owner-occupied property, it is reclassified to fixed asset and intangible assets with the carrying amounts determined at the carrying amounts of the investment property at the date of the transfer. An investment property is derecognised on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal. The net amount of proceeds from sale, transfer, retirement or damage of an investment property after its carrying amount and related taxes and expenses is recognised in profit or loss for the current period.

For investment properties measured using the cost model, the method for calculating asset impairment is provided in Note V.30

24.Fixed assets

(1) Recognition and initial measurement of fixed assets

The fixed assets of the company refer to tangible assets held for the purpose of producing goods, providing services, leasing, or business management, with a service life exceeding one accounting year, including buildings, power generation equipment, motor vehicles, and other equipment.

Fixed assets are recognised when it is probable that the related economic benefits will flow into the Group and the costs can be reliably measured.

Fixed assets purchased or constructed by the Group are initially measured at cost at the time of acquisition. The fixed assets contributed by the State shareholders at the reorganization of the Company into a corporation entity are recognised based on the evaluated amounts approved by the state-owned assets administration department.

Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable that the associated economic benefits will flow to the Group and the related cost can be reliably measured. The carrying amount of the replaced part is derecognised. All the other subsequent expenditures are recognised in profit or loss for the period in which they are incurred.

(2) Depreciation methods

The Company adopts the straight-line method for depreciation accrual. Depreciation is accrued for fixed assets from the time they reach their intended usable condition and ceases when they are derecognized or classified as non-current assets held for sale.

Except for fixed assets purchased using work safety funds, other fixed assets are depreciated using the straightline method to allocate the cost of the assets to their estimated net residual values over their estimated useful lives. For the fixed assets that have been provided for impairment loss, the related depreciation charge is prospectively determined based upon the adjusted carrying amounts over their remaining useful lives.

The impairment test method and impairment provision method for fixed assets are described in Note V.30. At the end of each year, the Company reviews the useful life, estimated net residual value, and depreciation method of its fixed assets.

Disposals of fixed assets

A fixed asset is derecognised on disposal or when no future economic benefits are expected from its use or disposal. The amount of proceeds from disposals on sale, transfer, retirement or damage of a fixed asset net of its carrying amount and related taxes and expenses is recognised in profit or loss for the current period.

25.Construction in progress

26.Borrowing costs

(1) Recognition principle for capitalization of borrowing costs

The borrowing costs incurred by the Company, which can be directly attributed to the acquisition, construction, or production of assets eligible for capitalization, shall be capitalized and included in the cost of the relevant assets. Other borrowing costs shall be recognized as expenses based on their actual amount at the time of occurrence and included in profit or loss for the current period. Borrowing costs that meet the following conditions shall commence capitalization:

① Asset expenditure has already occurred, which includes expenditure incurred in the form of cash payments, transfers of non-cash assets, or the assumption of interest-bearing debts for the acquisition, construction, or production of assets eligible for capitalization;

② The borrowing costs have already been incurred;

③ The acquisition, construction, or production activities necessary to prepare the asset for its intended use or sale have commenced.

(2) Capitalization period of borrowing costs

When the assets eligible for capitalization acquired, constructed, or produced by the company reach the expected usable or marketable state, the capitalization of borrowing costs ceases. Borrowing costs incurred after the assets eligible for capitalization reach the expected usable or marketable state are recognized as expenses based on their actual amount at the time of occurrence and recorded profit or loss for the current period.

Capitalization of borrowing costs is suspended during periods in which the acquisition or construction of an asset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition or construction is resumed; borrowing costs incurred during normal interruptions shall continue to be capitalized.

(3) Calculation method for capitalization rate and capitalization amount of borrowing costs

The amount of interest expenses actually incurred on special borrowings in the current period, after deducting the interest income earned on the unused borrowing funds deposited in the bank or the investment income earned from temporary investments, shall be capitalized. For general borrowings, the capitalization amount shall be determined by multiplying the weighted average of asset expenditures exceeding the special borrowings by the capitalization rate of the general borrowings used. The capitalization rate shall be calculated and determined based on the weighted average interest rate of the general borrowings.

During the capitalization period, the exchange differences on foreign currency specific borrowings are fully capitalized; the exchange differences on foreign currency general borrowings are recorded profit or loss for the current period.

During the capitalization period, the exchange differences on foreign currency specific borrowings are fully capitalized; the exchange differences on foreign currency general borrowings are recorded profit or loss for the current period.

27.Biological Assets

Not applicable

28.Oil & Gas assets

Not applicable

29. Intangible assets

（1） Service life and its determination basis, estimation, amortization method or review procedure

The intangible assets of the company primarily comprise land use rights, sea area use rights, rights to use supporting power transmission and transformation projects, software, non-patented technology, and others.

Intangible assets are initially measured at cost, and their useful lives are assessed upon acquisition. If the useful life is finite, an amortization method that reflects the expected realization of economic benefits related to the asset is adopted, starting from the point when the intangible asset is ready for use, and amortization is carried out over the expected useful life. If the expected realization method cannot be reliably determined, the straightline method is used for amortization. Intangible assets with an uncertain useful life are not amortized. The amortization method for intangible assets with limited service life is as follows:

At the end of each year, the Company reviews the useful life and amortization method of intangible assets with a limited useful life. If the review results in a difference from previous estimates, the original estimates are adjusted and treated as a change in accounting estimates.

If it is estimated on the balance sheet date that an intangible asset can no longer bring future economic benefits to the enterprise, the entire book value of the intangible asset shall be transferred to profit or loss for the current period.

The method for calculating asset impairment for intangible assets is provided in Note V.30.

（2）Collection scope of R&D expenditure and related accounting treatment methods

The expenditure on an internal research and development project is classified into expenditure on the research phase and expenditure on the development phase based on its nature and whether there is material uncertainty that the research and development activities can form an intangible asset at the end of the project.

Expenditure on the research phase is recognised in profit or loss in the period in which it is incurred. Expenditure on the development phase is capitalized only if all of the following conditions are satisfied:

management intends to complete the intangible asset, and use or sell it;

it can be demonstrated how the intangible asset will generate economic benefits: products with the application of intangible assets or the intangible assets themselves can prove to have market value, intangible assets for internal use application can prove to be of usefulness;

there are adequate technical, financial and other resources to complete the development and the ability to use or sell the intangible asset;

it is technically feasible to complete the intangible asset so that it will be available for use or sale; and

the expenditure attributable to the intangible asset during its development phase can be reliably measured.

Other development expenditures that do not meet the conditions above are recognised in profit or loss in the period in which they are incurred. Development costs previously recognised as expenses are not recognised as an asset in a subsequent period. Capitalized expenditure on the development phase is presented as development costs in the balance sheet and transferred to intangible assets at the date that the asset is ready for its intended use.

30. Impairment of long-term assets

The impairment of assets such as long-term equity investments in subsidiaries, associates, and joint ventures, investment properties measured using the cost model, fixed assets, construction in progress, right-of-use assets, intangible assets, goodwill, etc. (excluding inventories, deferred tax assets, and financial assets) shall be determined according to the following methods:

On the balance sheet date, we assess whether there are any indications that assets may be impaired. If there are such indications, the company will estimate their recoverable amounts and conduct an impairment test. Impairment tests are conducted annually for goodwill formed through business combinations, intangible assets with uncertain useful lives, and intangible assets that have not yet reached their intended use, regardless of whether there are any indications of impairment.

The recoverable amount is determined based on the higher of the net amount after deducting disposal expenses from the fair value of the asset and the present value of the expected future cash flows of the asset. The Company estimates the recoverable amount of an individual asset; if it is difficult to estimate the recoverable amount of an individual asset, the recoverable amount of the asset group to which the asset belongs is determined. The identification of an asset group is based on whether the main cash inflows generated by the asset group are independent of the cash inflows of other assets or asset groups.

When the recoverable amount of an asset or asset group is lower than its carrying amount, the Company will reduce its carrying amount to the recoverable amount, and the reduced amount will be recorded profit or loss for the current period. At the same time, a corresponding provision for asset impairment will be made.

Regarding the impairment test of goodwill, the carrying value of goodwill formed through business combinations is amortized to the relevant asset groups using a reasonable method from the acquisition date. If it is difficult to allocate to the relevant asset groups, it is amortized to the relevant combinations of asset groups. The relevant asset groups or combinations of asset groups are those that can benefit from the synergistic effects of business combinations and are not larger than the reporting segments determined by the company.

During impairment testing, if there are signs of impairment in the asset group or combination of asset groups related to goodwill, the impairment test is first conducted on the asset group or combination of asset groups excluding goodwill. The recoverable amount is calculated, and the corresponding impairment loss is recognized. Then, the impairment test is conducted on the asset group or combination of asset groups including goodwill. The book value is compared with the recoverable amount. If the recoverable amount is lower than the book value, the impairment loss of goodwill is recognized.

Once the asset impairment loss is recognized, it will not be reversed in subsequent accounting periods.

31. Long-term prepaid expenses

The long-term deferred expenses incurred by the company are priced at actual cost and amortized evenly over the expected benefit period. For long-term deferred expense items that do not benefit future accounting periods, their amortized value is fully recorded in profit or loss for the current period.

32.Constract Liabilities

See Note V (37) Revenue for details.

33. Employee benefits

(1) Short-term employee benefits

Short-term employee benefits include wages or salaries, bonus, allowances and subsidies, staff welfare, premiums or contributions on medical insurance, work injury insurance and maternity insurance, housing funds, union running costs and employee education costs and short-term paid absences. The short-term employee benefits actually occurred are recognised as a liability in the accounting period in which the service is rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets.

(2) Post-employment benefits

The Company classifies post-employment benefit plans as either defined contribution plans or defined benefit plans. Defined contribution plans are post-employment benefit plans under which the Company pays fixed contributions into a separate fund and will have no obligation to pay further contributions; and defined benefit plans are post-employment benefit plans other than defined contribution plans. During the reporting period, the Company’s post-employment benefits mainly include basic pensions, unemployment insurance and supplementary pensions, and all of them belong to the defined contribution plans; non-planned expenses provided to retired employees fall under defined benefit plans.

Basic pensions

The Group’s employees participate in the basic pension plan set up and administered by local authorities of Ministry of Human Resource and Social Security. Monthly payments of premiums on the basic pensions are calculated according to the bases and percentage prescribed by the relevant local authorities. When employees retire, the relevant local authorities are obliged to pay the basic pensions to them

Supplementary pensions

The Company purchases supplementary pensions for employees, and pays insurance premium according to the policies of the parent company, Guangdong Energy Group. The amounts based on the above calculations are recognised as liabilities in the accounting period in which the service has been rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets.

Defined benefit plan

For defined benefit plan, the Company uses the projected unit credit method and includes the obligation of the defined benefit plan in the accounting period in which the service has been rendered by the employees, with a corresponding charge to the profit or loss for the period. The cost of employee benefits arising from defined benefit plans are classified into the following parts: Service costs (including current service costs and settlement gains and losses);

Net interest on net liabilities of defined benefit plans (including interest expenses on defined benefit plan obligations); as well as remeasure the changes arising from the net liability of the defined benefit plan.

Service costs and net interest on net liabilities of defined benefit plans are recorded in profit or loss for the current period. Changes arising from the remeasurement of net liabilities of defined benefit plans, including actuarial gains or losses, are recorded in other comprehensive income.

(3) Termination benefits

The Company recognises a liability arising from compensation for termination of the employment relationship with employees, with a corresponding charge to profit or loss for the current period at the earlier of the following dates: when the Company cannot unilaterally withdraw an employment termination plan or a curtailment proposal; or when the Company recognises costs or expenses for a restructuring that involves the payment of termination benefits.

For the implementation of internal employee retirement plans, the economic compensation before the official retirement date is considered as a dismissal benefit. From the date when the employee ceases to provide services until the normal retirement date, the proposed payment of wages for early retired employees and social insurance premiums are included in profit or loss for the current period on a onetime basis. The economic compensation after the official retirement date (such as normal pension benefits) is treated as post-employment benefits.

(4)Other long-term benefits

Early retirement benefits:

The Company offers early retirement benefits to those employees who accept early retirement arrangements. The early retirement benefits refer to the salaries and social security contributions to be paid to and for the employees who accept voluntary retirement before the normal retirement date prescribed by the State, as approved by the management. The Group pays early retirement benefits to those early retired employees from the early retirement date until the normal retirement date. The Group accounts for the early retirement benefits in accordance with the treatment for termination benefits, in which the salaries and social security contributions to be paid to and for the early retired employees from the off-duty date to the normal retirement date are recognised as liabilities with a corresponding charge to the profit or loss for the current period. The differences arising from the changes in the respective actuarial assumptions of the early retirement benefits and the adjustments of benefitstandards are recognised in profit or loss in the period in which they occur. The termination benefits expected to be paid within one year from the balance sheet date are presented as Employee benefits payable.

34． Provisions

If the obligations related to contingencies simultaneously meet the following conditions, the Company will recognize them as provisions：

(1) This obligation is a present obligation undertaken by the Company;

(2) It is probable that an outflow of economic benefits will be required to settle the obligation;

(3) The amount of the obligation can be reliably measured.

A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation. Factors surrounding a contingency, such as the risks, uncertainties and the time value of money, are taken into account as a whole in reaching the best estimate of a provision. Where the effect of the time value of money is material, the best estimate is determined by discounting the related future cash outflows. The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflect the current best estimate.

If the expenditure required to settle the confirmed provisions is expected to be fully or partially compensated by a third party or other parties, the compensation amount can only be separately recognized as an asset when it is virtually certain that it will be received. The recognized compensation amount shall not exceed the book value of the confirmed liability.

35. Share payment

Not applicable

36. Other financial instruments such as preferred stocks and perpetual bonds

Not applicable

37. Revenue

Accounting policies adopted for income recognition and measurement

(1) General principles

The Company recognizes revenue when it has fulfilled its performance obligations under the contract, that is, when the customer obtains control over the relevant goods or services.

If a contract contains two or more performance obligations, the Company, on the contract start date, allocates the transaction price to each individual performance obligation based on the relative proportion of the separate selling prices of the goods or services promised under each individual performance obligation, and measures revenue based on the transaction price allocated to each individual performance obligation.

When one of the following conditions is met, it is considered fulfilling the performance obligation within a certain time period; otherwise, it is considered fulfilling the performance obligation at a certain point in time:

①Customers obtain and consume the economic benefits brought by the company's performance while the company is fulfilling its contract. ② Customers have the ability to control the goods that are in progress during the company's fulfillment process. ③ The goods produced by the company during the performance of the contract have irreplaceable uses, and the company has the right to collect payments for the accumulated performance completed to date throughout the contract period.

For performance obligations that are fulfilled within a certain period, the Company recognizes revenue based on the progress of fulfillment during that period. When the progress of fulfillment cannot be reasonably determined, if the costs already incurred by the Company are expected to be compensated, revenue is recognized at the amount of the costs already incurred until the progress of fulfillment can be reasonably determined.

For performance obligations that are fulfilled at a certain point in time, the Company recognizes revenue at the point when the customer obtains control over the relevant goods or services. In determining whether the customer has obtained control over the goods or services, the Company considers the following indicators:

①The company has a current right to receive payment for the goods or services, which means the customer has a current obligation to pay for the goods.

② The company has transferred the legal ownership of the product to the customer, meaning that the customer now holds the legal ownership of the product.

③ The company has transferred the physical possession of the product to the customer, meaning that the customer has physically taken possession of the product.

④ The company has transferred the significant risks and rewards of ownership of the goods to the customer, meaning that the customer has assumed the significant risks and rewards of ownership of the goods.

⑤ The customer has accepted the product or service.

⑥ Other signs indicating that the customer has obtained control over the goods.

(2) Specific methods

When the customer obtains control over the relevant goods or services, the company recognizes revenue based on the expected amount of consideration it is entitled to receive.

①Revenue from sale of electricity and heat energy Revenue is recognised when electricity and heat energy are supplied to grid companies or customers, and they obtain control over electricity. ② Revenue from sale of byproducts

Revenue from the sale of goods is recognised when the Company transfers by-products (such as coal ash) produced by electricity generations to the designated delivery place pursuant to the contract or agreement, the resource utilization enterprise confirms receipt and obtains control over the by-products.

③ Provision of electric power transaction service

For the electric power transaction service provided by the Company to external parties, upon the receipt of the service, revenue is recognised based on the difference between the purchase price and the selling price of electricity

④ Rendering of services

The Company provides maintenance services to external clients, and recognizes revenue over a period of time based on the progress of the services completed. The progress of the completed services is determined by the proportion of incurred costs to the estimated total costs. On the balance sheet date, the company re-estimates the progress of the completed services to reflect changes in performance.

When recognizing revenue based on the progress of completed labor services, the Company recognizes the portion for which it has obtained unconditional rights to receive payment as accounts receivable, and the remaining portion as contract assets. Loss provisions are recognized for accounts receivable and contract assets based on expected credit losses ,for details, please refer to(Note V5 (11)). If the contract price received or receivable by the Company exceeds the labor services completed, the excess is recognized as contract liabilities. The Company presents contract assets and contract liabilities under the same contract on a net basis.

Contract costs include contract performance costs and contract acquisition costs. The costs incurred by the Company for providing maintenance services are recognized as contract performance costs, and are carried forward and included in the main business costs based on the progress of the completed services when revenue is recognized.

38. Contract Costs

Contract costs include incremental costs incurred for obtaining the contract and contract performance costs.

Incremental costs incurred to obtain a contract refer to costs that would not have been incurred if the company did not obtain the contract (such as sales commissions). If such costs are expected to be recoverable, the company recognizes them as contract acquisition costs and recognizes them as an asset. Other expenses incurred by the company to obtain a contract, other than the incremental costs expected to be recoverable, are recognized in profit or loss for the period when they are incurred.

For costs incurred in the performance of a contract, if they do not fall within the scope of other enterprise accounting standards such as inventories and simultaneously meet the following conditions, the company recognizes them as contract performance costs and recognizes them as an asset:

① The costs are directly attributable to a contract or an anticipated contract, including direct labor, direct materials, overheads (or similar expenses), costs that are explicitly chargeable to the customer, and other costs that are incurred solely in connection with the contract;

② The costs enhance the Company's future resources for fulfilling its performance obligations; ③ The costs are expected to be recovered.

Assets recognized for costs of obtaining a contract or costs to fulfill a contract (hereinafter referred to as "assets related to contract cost") shall be amortized on the same basis as revenue recognition of goods or services related to such assets and recognized into profit or loss for the current period when incurred.

When the carrying amount of an asset related to contract costs exceeds the difference between the following two items, the Company makes an impairment provision for the excess and recognizes it as an asset impairment loss:

① The remaining consideration that the Company expects to receive in exchange for the goods or services to which the asset relates;

② The costs to be incurred for the transfer of the relevant goods or services

39. Government grants

Government subsidies are recognized when the conditions attached to the subsidies are met and the subsidies can be received. For government subsidies for monetary assets, they are measured at the received or receivable amount.

For government subsidies for non-monetary assets, they are measured at fair value; if the fair value cannot be reliably obtained, they are measured at a nominal amount of 1 yuan.

Government subsidies related to assets refer to those obtained by the company and used for the acquisition, construction, or formation of long-term assets through other means; otherwise, they are considered government subsidies related to income.

For government documents that do not explicitly specify the recipients of subsidies, if the subsidy can form long-term assets, the portion of the government subsidy corresponding to the asset value shall be regarded as government subsidies related to assets, and the remaining portion shall be regarded as government subsidies related to income; if it is difficult to distinguish, the entire government subsidy shall be regarded as government subsidies related to income.

Government subsidies related to assets are recognized as deferred income and are recorded in profit or loss over the useful life of the relevant assets using a reasonable and systematic method.

Government subsidies related to income, which are used to compensate for related costs or losses already incurred, are recorded in the current profit or loss. Those used to compensate for related costs or losses in future periods are recorded in deferred income and are recorded in the current profit or loss during the period when the related costs or losses are recognized.

Government subsidies measured at their nominal amounts are directly recorded in the current profit or loss. The Company adopts a consistent approach to handling the same or similar government subsidy transactions. Government subsidies related to daily activities are recorded in other income based on the substance of the economic transaction. Government subsidies unrelated to daily activities are recorded in no operating income.

When confirmed government subsidies need to be returned, if the book value of the relevant assets was offset during initial recognition, the book value of the assets should be adjusted. If there is a balance of related deferred income, the book balance of the related deferred income should be offset, and the excess should be recorded in profit or loss for the current period. In other cases, it should be directly recorded in t profit or loss for the current period.

40. Deferred tax assets and deferred tax liabilities

Income tax comprises current income tax and deferred income tax. Except for the adjusted goodwill arising from business combinations or the deferred income tax related to transactions or events directly recognized in owner's equity, which is recorded in owner's equity, all other income taxes are recognized as income tax expenses and recorded in profit or loss for the current period.

The Company recognizes deferred income tax using the balance sheet liability method based on the temporary differences between the carrying amount of assets and liabilities at the balance sheet date and their tax bases.

The deferred income tax liabilities are recognized for all taxable temporary differences, unless the taxable temporary difference arises from the following transactions:

(1) Initial recognition of goodwill, or initial recognition of assets or liabilities arising from transactions that meet the following criteria: the transaction is not a business combination, and at the time of occurrence, it neither affects accounting profit nor affects taxable income (except for individual transactions where the initially recognized assets and liabilities result in equal amounts of taxable temporary differences and deductible temporary differences);

(2) For taxable temporary differences related to investments in subsidiaries, joint ventures, and associated enterprises, the timing of the reversal of such temporary differences can be controlled, and it is likely that such temporary differences will not reverse in the foreseeable future.

For deductible temporary differences, deductible losses that can be carried forward to future years, and tax credits, the Company recognizes the resulting deferred tax assets to the extent that it is likely to obtain future taxable income that can be used to offset the deductible temporary differences, deductible losses, and tax credits, unless the deductible temporary differences arise from the following transactions:

(1) The transaction is not a business combination, and at the time of transaction, it neither affects accounting profit nor affects taxable income (except for individual transactions where the initial recognition of assets and liabilities results in equal amounts of taxable temporary differences and deductible temporary differences);

(2) For deductible temporary differences related to investments in subsidiaries, joint ventures, and associated enterprises, corresponding deferred tax assets are recognized when both of the following conditions are met: the temporary differences are likely to be reversed in the foreseeable future, and it is likely that future taxable income will be available to offset the deductible temporary differences.

On the balance sheet date, the Company measures deferred tax assets and deferred tax liabilities at the tax rate applicable during the expected period of asset recovery or liability settlement, and reflects the income tax impact of the expected asset recovery or liability settlement method on the balance sheet date.

On the balance sheet date, the Company reviews the carrying amount of deferred tax assets. If it is likely that sufficient taxable income will not be available in future periods to offset the benefit of the deferred tax asset, the carrying amount of the deferred tax asset is reduced. When sufficient taxable income is likely to be available, the reduced amount is reversed.

On the balance sheet date, deferred tax assets and deferred tax liabilities are presented at the net amount after offsetting when both of the following conditions are met:

(1) The taxable entity within the company has the statutory right to settle current income tax assets and current income tax liabilities on a net basis;

(2) Deferred tax assets and deferred tax liabilities are related to income taxes levied by the same tax authority on the same taxable entity within the company.

41. Leases

(1) The Group as the lessee

At the lease commencement date, the Company recognises the right-of-use asset and measures the lease liability at the present value of the lease payments that are not paid at that date. Lease payments include fixed payments, the exercise price of a purchase option or termination penalty if the lessee is reasonably certain to exercise that option etc. Variable lease payments in proportion to sales are excluded from lease payments and recognised in profit or loss as incurred. Lease liabilities that are due within one year (inclusive) as from the balance sheet date are included in the current portion of noncurrent liabilities. Right-of-use assets of the Group comprise leased land use rights, buildings, machinery and equipment, and motor vehicles.

Right-of-use assets are measured initially at cost which comprises the amount of the initial measurement of lease liabilities, any lease payments made at or before the commencement date and any initial direct costs, less any lease incentives received. If there is reasonable certainty that the Group will obtain ownership of the underlying asset by the end of the lease term, the asset is depreciated over its remaining useful life; otherwise, the asset is depreciated over the shorter of the lease term and its remaining useful life. The carrying amount of the right-of-use asset is reduced to the recoverable amount when the recoverable amount is below the carrying amount. .For details，please refer to NoteIII.30.

For short-term leases with a term of 12 months or less and leases of an individual asset (when new) of low value, the Company chooses to include the lease payments in the cost of the underlying assets or in the profit or loss for the current period on a straight-line basis over the lease term, instead of recognizing right-of-use assets and lease liabilities.

The Group accounts for a lease modification as a separate lease if both:

① The modification increases the scope of the lease by adding the right to use one or more underlying assets;

② The consideration for the lease 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 contract.

When lease modifications are not accounted for as a separate lease, except for contract modifications that can adopt a simplified method as stipulated by the Ministry of Finance, the company redetermines the lease term on the effective date of the lease modification, and uses the revised discount rate to discount the lease payment amount after modification, thereby remeasuring the lease liability. If the lease modification results in a reduction in the scope of the lease or a shortened lease term, the company correspondingly reduces the book value of the right-to-use asset and includes the related gains or losses from partial or complete termination of the lease in profit or loss for the current period.

For other lease modifications that result in a remeasurement of the lease liability, the company correspondingly adjusts the book value of the right-to-use asset. For eligible rent reductions agreed upon in existing lease contracts, the Company opts to adopt a simplified approach. Upon reaching an agreement to terminate the original payment obligation, the undiscounted amount of the reduction is recorded in profit or loss for the current period, and the lease liability is adjusted accordingly.

（2）The Group as the lessor

Leases that have essentially transferred almost all risks and rewards related to the ownership of the leased asset are classified as financial leases. Other leases are classified as operating leases. Operating leases Where the Company leases out self-owned buildings and land use rights under operating leases, rental income there from is recognised on a straight-line basis over the lease term. Variable rental that is linked to a certain percentage of sales is recognised in rental income as incurred.

For the qualified rent concessions agreed on existing lease contracts, the Company applies the practical expedient to account for the concessions as variable lease payments and record the concessions in profit or loss during the waiving period

Except that the above changes in qualified contract which are accounted for by applying the practical expedient, for a lease modification, the Company accounts for it as a new lease from the effective date of the modification, and considers any lease payments received in advance and receivable relating to the lease before modification as receivables of the new lease

42. Other significant accounting policies and estimates

（1）Work safety funds

In accordance with relevant regulations, the Company allocates work safety funds in accordance with the "Administrative Measures for the Allocation and Use of Work Safety Expenses in Enterprises" (Cai Zi [2022] No. 136). Subsidiaries engaged in power generation business shall appropriate work safety funds based on the actual revenue in the previous year and at the following percentages:

 3% for the proportion of revenue up to RMB 10 million in the previous year;

 1.5% for the proportion of revenue between RMB 100 million and RMB 1 billion in the previous year;

 1% for the proportion of revenue between RMB 100 million and RMB 1 billion in previous year;

 0.8% for the proportion of revenue between RMB 1 billion and RMB 5 billion in the previous year;

• 0.6% for the proportion of revenue between RMB5,000 million and RMB10,000 million in the previous year;

 0.2% for the proportion of revenue exceeding RMB 10 billion in the previous year.

Work safety funds are recognised in profit or loss as the "Specific reserve" item for the current period when appropriated.

When using the special reserve, if the expenditures are expenses in nature, the expenses incurred are offset against the specific reserve directly when incurred. If they result in the formation of fixed assets, the incurred expenditures shall first be collected under the "Construction in Progress" account. Once the safety project is completed and reaches its intended usable state, the fixed assets shall be recognized. Simultaneously, the special reserves shall be offset against the cost of forming the fixed assets, and the accumulated depreciation of the same amount shall be recognized. No further depreciation shall be accrued for this fixed asset in subsequent periods.

（2）Carbon emission use rights

Categorized as an Enterprise with High Emissions, the Group needs to fulfill its emission reduction obligations and recognise carbon emission related assets and expenditures per relevant regulations:

(i) The present obligations incurred by the Group in fulfilling its emission reduction obligations are measured at the best estimate of the expenditure required and recognised as other payables and non-operating expenses.

(ii) The Group purchases carbon emission allowances and recognises related carbon emission rights assets based on the cost paid or payable at the acquisition date, and the balance is included in other current assets; the Group makes no accounting treatment for carbon emission allowances purchased at nil consideration;

(iii) The Group uses the purchased carbon emission allowances to fulfill its emission reduction obligations and recognises the book balance of the allowances used as a reduction of carbon emission rights assets; the Group makes no accounting treatment if it uses carbon emission allowances purchased at nil consideration to fulfill its obligations;

(iv) The Group sells carbon emission allowances and recognises related non-operating income or nonoperating expenses based on the difference between the amount received or receivable at the date of sale and the book balance of the allowances sold

（3）Segment information

The Group identifies operating segments based on the internal organisation structure, management requirements and internal reporting system, and discloses segment information of reportable segments which is determined on the basis of operating segments.

An operating segment is a component of the Group that satisfies all of the following conditions: (a) the component is able to earn revenue and incur expenses from its ordinary activities; (b) whose operating results are regularly reviewed by the Group’s management to make decisions about resources to be allocated to the segment and to assess its performance, and (c) for which the information on financial position, operating results and cash flows is available to the Group. Two or more operating segments that have similar economic characteristics and satisfy certain conditions can be aggregated into one single operating segment.

（4）Critical accounting estimates and judgements

The Group continually evaluates the critical accounting estimates and key judgements applied based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

(a)Critical judgements in applying the accounting policies

(i) Classification of financial assets

Significant judgements made by the Group in the classification of financial assets include analysis on business models and contractual cash flow characteristics.

The Group determines the business model for financial asset management at the level of different groups, and factors to be considered include the methods of evaluation on financial asset performance and reporting of financial asset performance to key management personnel, risks affecting financial asset performance and management methods for such risks, the ways in which related business management personnel are remunerated, etc.

When assessing whether contractual cash flow characteristics of financial assets are consistent with basic lending arrangement, key judgements made by the Group include: the possibility of changes in timing or amount of the principal during the duration due to reasons such as early repayment; whether interest only include time value of money, credit risks, other basic lending risks and considerations for costs and profits. For example, whether the amount of prepayment only reflects the principal outstanding and the interest based on the principal outstanding, as well as the reasonable compensation due to the early termination of the contract.

(ii) Determination of significant increase in credit risk

When the Group classifies financial instruments into different stages, its criteria for significant increase in credit risk and credit-impaired are as follows:

Judgement of the Group for significant increase in credit risk is mainly based on whether one or more of the following indicators changed significantly: business environment of the debtor, internal and external credit rating, significant changes in actual or expected operating results, significant decrease in value of collateral or credit rate of guarantor, etc.

Judgement of the Group on the occurred credit impairment is mainly based on whether it meets one or more of the following conditions: the debtor is suffering significant financial difficulties, engaged in other debt restructuring, or it is probable that the debtor will enter bankruptcy, etc.

(iii) Timing of revenue recognition

With regard to sale of electricity to grid companies, the Group supplies electricity to grid companies in accordance with the contract. Thereafter, the grid companies have the right to sell electricity and the discretion in pricing, and take the risks of any price fluctuation or loss of the products. The Group believes that the grid companies obtain control over electric power upon the receiving of the electric power. Therefore, revenue is recognised upon the receiving of the electric power of grid companies.

(b) Critical accounting estimates and key assumptions

(i) Assessment on impairment of fixed assets

A fixed asset is tested for impairment by the Group if there is any indication that it may be impaired at the balance sheet date by calculating and comparing the recoverable amount of the fixed asset with its carrying amount to check the difference. If the result of the impairment test indicates that the recoverable amount of an asset is less than its carrying amount, a provision for impairment and an asset impairment loss are recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the future cash flows expected to be derived from the asset. The determination of the recoverable amount involves accounting estimates.

When assessing whether the above assets are impaired, management mainly evaluates and analyses: (i) whether events affecting asset impairment occurred; (ii) whether the present value of expected cash flows arising from the continuing use or disposals of the asset is lower than its carrying amount; and (iii) whether the significant assumptions used in the calculation of the present value of the estimated cash flows are appropriate

The calculation of the present value of future cash flows involves management’s significant estimates and judgements, including the discount rate, the growth rate of the estimated on-grid electricity price, the growth rate of the estimated electricity sale and the variability rate of the estimated price of coal used in power generation. Changes in these assumptions may have material impact on the present value used in the impairment test, and cause impairment in the above-mentioned long-term assets of the Group

(ii) Measurement of ECL

The Group calculates ECL through exposure at default and ECL rates, and determines the ECL rates based on probability of default and loss given default. In determining the ECL rates, the Group uses data such as internal historical credit loss experience, etc., and adjusts historical data based on current conditions and forward-looking information.

When considering forward-looking information, the Group considered different macroeconomic scenarios. Significant macroeconomic assumptions and parameters related to the estimation of ECL include the risk of economic downturn, external market environment, technological environment, changes in customer conditions, Gross Domestic Product (“GDP”) and Consumer Price Index (“CPI”), etc. The Group regularly monitors and reviews assumptions and parameters related to the calculation of ECL

(iii) Income taxes and deferred income taxes

The Group is subject to income taxes in numerous jurisdictions. There are some transactions and events for which the ultimate tax determination is uncertain during the ordinary course of business. Significant judgement is required from the Group in determining the provision for income tax in each of these jurisdictions. Where the final tax outcomes of these matters are different from the amounts that were initially recorded, such differences will impact the income tax and deferred income tax provisions in the period in which such determination is made.

As stated in Note 6, some subsidiaries of the Group are high-tech enterprises. The high-tech enterprise certificate is effective for three years. Upon expiration, application for high-tech enterprise identification should be submitted again to the relevant government authorities. Based on the historical experience of reassessment for high-tech enterprise upon expiration and the actual condition of the subsidiaries, the Group considers that the subsidiaries are able to obtain the qualification for high-tech enterprises in future years, and therefore a preferential tax rate of 15% is used to calculate the corresponding deferred income tax. If some subsidiaries cannot obtain the qualification for high-tech enterprise upon expiration, then the subsidiaries are subject to a statutory tax rate of 25% for the calculation of the income tax, which further influences the recognised deferred tax assets, deferred tax liabilities and income tax expenses.

A deferred tax asset is recognised for the carry forward of unused deductible losses to the extent that it is probable that future taxable profits will be available against which the deductible losses can be utilised. Future taxable profits include taxable profits that can be achieved through normal operations and the increase in taxable profits due to the reversal of taxable temporary differences arising from previous period in future period. The Group determines the future taxable profits based on the future financial forecast, which requires management’s significant estimates and judgements, including the estimated electricity sale, estimated on-grid electricity price, the estimated price of coal used in power generation and other operating expenses. If there is any difference between the actual and the estimates, adjustment may be made to the carrying amount of deferred tax assets.

43.Change of main accounting policies and estimations

(1)Change of main accounting policies

□Applicable ^Not applicable

(2) Change of main accounting estimations

√Applicable□ Not applicable In RMB

The specific depreciation lives before and after the change are as follows:

（3）The information of the adjusting items related to the financial statements at the beginning of the year of first implementation due to the first implementation of new accounting standards from 2026.Adjustment description

□Applicable√ Not applicable

44.Other

Not applicable

VI. Taxation

1. Main categories and rates of taxes

2. Tax preference

Corporate income tax incentives

Pursuant to the approval documents (Cai Shui [2008] No. 46 and Guo Shui Fa [2009] No. 80), the Company and several subsidiaries are approved to engage in wind power projects and photovoltaic projects since 1 January 2008 and are exempted from enterprise income tax in the first three years counting from the year when revenue from production and operations of those projects is recorded for the first time, and can enjoy half rate reduction in the following three years (“three-year exemptions and three-year halves”).

Pursuant to the Supplementary Notice on Issues Concerning the Preferential Enterprise Income Tax Policies for Public Infrastructure Projects (Cai Shui [2014] No. 55), enterprises invest and operate public infrastructure projects in compliance with the List of Public Infrastructure Projects Enjoying Enterprise Income Tax Preferential, those which adopt one-off approval and are subject to construction in batches (such as terminals, berths, airport terminals, runways, sections, generator units, etc.) are subject to income tax calculated in units of each batch and enjoy the tax preferential policy of “three-year exemptions and three-year halves” when the following conditions are satisfied: (i) different batches are space-independent; (ii) each batch has its own revenue function; (iii) they are accounted for in units of each batch and are subject to income tax individually, while the period expenses are allocated rationally.

The subsidiaries which enjoy this tax preference as listed as below

In 2022, the Group's subsidiaries, Zhanjiang Wind Power and Biomass Power Generation, obtained the "Hightech Enterprise Certificate" (certificate numbers GR202244006758 and GR202244008597) jointly issued by the Guangdong Provincial Department of Science and Technology, the Guangdong Provincial Department of Finance, and the Guangdong Tax Service under the State Taxation Administration. The certificate is valid for 3 years and was issued on December 22, 2022. According to Article 28 of the "Enterprise Income Tax Law of the People's Republic of China", the applicable enterprise income tax rate for Zhanjiang Wind Power and Biomass Power Generation from 1 January 2026 to 30 June 2026 is 15%.

In 2024, the Group's subsidiary, Guangdong Wind Power, obtained the "High-tech Enterprise Certificate" (Certificate No. GR202444008116) jointly issued by the Guangdong Provincial Department of Science and Technology, the Guangdong Provincial Department of Finance, and the Guangdong Provincial Tax Service of the State Taxation Administration. The certificate is valid for 3 years and was issued on December 11, 2024. According to Article 28 of the "Enterprise Income Tax Law of the People's Republic of China", the applicable enterprise income tax rate for Guangdong Wind Power from 1 January 2026 to June 2026 is 15%.

According to the approval provided in Announcement No. 6 of 2023 by the State Taxation Administration, Announcement of the Ministry of Finance and the State Taxation Administration on Preferential Income Tax Policies for Small and Micro Enterprises and Self-Employed Individuals, for small and micro-profit enterprises with annual taxable income not exceeding 1 million yuan, the taxable income shall be calculated at a reduced rate of 25%, and the enterprise income tax shall be paid at a rate of 20%. The aforementioned small and micro enterprises refer to those engaged in industries not restricted or prohibited by the state, and simultaneously meeting three conditions: (1) annual taxable amount do not exceed RMB 3 million, (2) number of employees do not exceed 300 staffs, and (3) total assets do not exceed RMB50 million. Certain subsidiaries of the Company enjoy the above tax benefits from 1 January 2026 to June 2026.

According to the Notice on Issues Concerning the Implementation of the Preferential Income Tax Catalogue for Enterprises Engaged in Comprehensive Resource Utilization (Cai Shui [2008] No. 47), from January 1, 2008, enterprises that use resources listed in the Preferential Income Tax Catalogue for Enterprises Engaged in Comprehensive Resource Utilization as their main raw materials to produce products that meet relevant national or industry standards within the aforementioned catalogue will have their income calculated at a reduced rate of 90% for the total income of the enterprise for the current year. The subsidiaries of our group, Zhanjiang Electric Power Co., Ltd. and Guangdong Huizhou Pinghai Power Generation Co., Ltd., use fly ash to produce commercial fly ash, which meets the aforementioned preferential income tax conditions for comprehensive resource utilization and will enjoy the aforementioned tax benefits from 1 January 2026 to June 2026.

According to the "Notice of the Ministry of Finance and the State Administration of Taxation on Issues Concerning the Implementation of the Preferential Income Tax Catalogue for Enterprises Using Specialized Equipment for Environmental Protection, the Preferential Income Tax Catalogue for Enterprises Using Specialized Equipment for Energy and Water Conservation, and the Preferential Income Tax Catalogue for Enterprises Using Specialized Equipment for Safe Production" (Cai Shui [2008] No. 48), enterprises that purchase and actually use specialized equipment for environmental protection, energy and water conservation, and safe production within the scope of the "Preferential Income Tax Catalogue for Enterprises Using Special

In RMB

Equipment for Environmental Protection", the "Preferential Income Tax Catalogue for Enterprises Using Special Equipment for Energy and Water Conservation", and the "Preferential Income Tax Catalogue for Enterprises Using Specialized Equipment for Safe Production" from January 1, 2008, can offset 10% of the investment amount in specialized equipment against the current year's enterprise income tax payable. If the current year's enterprise income tax payable is less than 10% of the investment amount, it can be carried forward to future years but the carry-forward period shall not exceed five taxable years. Some subsidiaries of the group enjoy the above tax benefits from 1 January 2026 to June 2026.

 VAT tax incentives

Pursuant to Announcement No. 10 in 2025 of the State Taxation Administration, the "Announcement on Adjusting Value-Added Tax Policies for Wind Power Generation, etc.", a policy of immediate VAT refund at 50% is applied to the sale of self-produced electricity generated from offshore wind power by taxpayers. The Group's subsidiaries, Guangdong Energy Qingzhou Offshore Wind Power Co., Ltd., Guangdong Yuedean Zhuhai Offshore Wind Power Co., Ltd., and Guangdong Yuedean Yangjiang Offshore Wind Power Co., Ltd., enjoyed the above tax incentives from January to June 2026.

3.Other

Not applicable

VII. Notes on major items in consolidated financial statements

1. Monetary funds

In RMB

Other note

As of June 30, 2026, the Group had no funds deposited overseas (December 31, 2025: None).

As of June 30, 2026, Other monetary funds amounted to RM30,192,654 (On December 31, 2025: RMB25,738,324), which mainly are deposits such as ecological protection deposits and performance guarantee deposits.

2. Transactional financial assets

3. Derivative financial assets

In RMB

4. Notes receivable

(1) Notes receivable listed by category

In RMB

（2）By accrual of bad debt provision

In RMB

Name of bad debt provision by portfolio: portfolio of notes receivable

In RMB

Note：

None

If the provision for bad debts of notes receivable is made in accordance with the general model of expected credit losses, please refer to the disclosure of other account receivable to disclose related information about baddebt provisions:

□Applicable ^Not applicable

(3) Bad debt provision accrual, collected or reversal in the period

Accrual of bad debt provision in the period:

None

Including important amount of bad debt provision collected or reversal in the period:

□Applicable ^Not applicable

(4) Note receivable pledged at period-end

None

(5) Note receivable which have endorsed and discount at period-end and has not expired on balance sheet date

None

(6) Note receivable actually written-off in the period

None

5. Account receivable

(1) Accounts receivable disclosed by category

In RMB

（2） According to the bad debt provision method classification disclosure

In RMB

Accrual of bad debt provision by portfolio:：Electricity sales receivable

In RMB

Note：

Portfolio 1.As at 30 June 2026, the Group’s receivables from sale of electricity amounted to RMB 10,333,909,577 (31 December 2025:RMB 9,481,647,765), which mainly comprised receivables of RMB 10,173,762,353 from China Southern Power Grid Co., Ltd. and its subsidiaries (collectively referred to as “China Southern Power Grid”) and RMB 153,040,515 from State Grid Corporation of China (“State Grid”) and its subsidiaries. Considering the favorable credit history of China Southern Power Grid and State Grid, is the amount that should be collected from Inner Mongolia Electric Power (Group) Co., Ltd.

Receivables for electricity sales, including general electricity sales proceeds and receivables for renewable energy subsidies;

Considering the favorable credit history of China Southern Power Grid and State Grid, the Group held that there was no significant credit risk arising from receivables from sale of electricity. Since the possibility of material losses due to the default by China Southern Power Grid and State Grid was extremely low, the Group made no provision for the ECL of the receivables from sale of electricity (31 December 2025: Nil)

For the receivables of renewable energy subsidies, the Group has made provision for bad debts based on the expected credit loss model, the balance of which is RMB39,922,723 as of June 30, 2026(31 December 2025: RMB35,903,282)

On 30 June 2026, the right to collect electric charges of the Group’s certain subsidiaries, was pledged to banks to obtain long-term borrowings with a principal of RMB3,606,305,646, including current portion of longterm borrowings with a principal of RMB373,905,838. (December 31, 2025: longterm borrowings with a principal of RMB3,935,009,425, including current portion of long-term borrowings with a principal of RMB456,142,964.).

Accrual of bad debt provision by portfolio: Related party receivable

In RMB

Note：

Portfolio 2：- Related party receivable：As at 30 June 2026, the amount of receivables from related parties of the Group was RMB40,874,983（December 31,2025:RMB48,322,028) , and the historical loss rate was extremely low. Therefore, The Group believes that there is no significant credit risk in the receivables from related parties, and the possibility of significant losses due to their default is extremely low. The Group's expected credit loss rate for receivables from related parties is 0%. （December 31,2025:0%).

Accrual of bad debt provision by portfolio: Steam sale and other receivable

In RMB