CGN Power : 2021 ANNUAL REPORT04-07

(A joint stock company incorporated in the People's Republic of China with limited liability)

Stock Code: 1816

PASS ON FOR

GENERATIONS

2021 ANNUAL REPORT

Contents

Business at a Glance for the Year

Capitals

Financial Report

• 1 2021 Major Events

  • 46 Production Capital

    • 166 Audit Report

• 2 Key Data for 2021

  • 50 Intellectual Capital

    • 170 Consolidated Balance Sheet

• 7 Business Model

• 54 Human Capital

  • 172 Balance Sheet of the

    • 8 Chairman's Statement

• 65 Financial Capital

  • Parent Company

    • 12 President's Review

  • 174 Consolidated Income

• 72 Environmental Capital

  • Statement

    • 17 Shareholder Value

• 74 Social and Relationship Capital

• 176 Income Statement of

  Parent Company

• 177 Consolidated Cash

  Finance, Assets and Investment

  Corporate Governance

  Flow Statement

• 179 Cash Flow Statement of

  • 22 Financial Performance and Analysis

    • 80 Board of Directors, Supervisory

• the Parent Company

  • Committee and Senior

• 180 Consolidated Statement

  • 26 Assets and Investment

  • Management

• of Changes in

  • 87 Corporate Governance Report

• Shareholders' Equity

  Business Performance and Outlook

  • 122 Directors' Report

• 181 Statement of Changes in

  Shareholders' Equity of

  • 141 Audit and Risk Management

• Parent Company

  • 30 Industry Overview

    • Committee Report

• 182 Notes to the Financial

• 32 Business Performance and Analysis

  • 143 Remuneration Committee

    Statements

    Report

    315 Company Information

• 42 Future Outlook

• 145 Nomination Committee

  Report

• 148 Nuclear Safety Committee

  Report

• 150 Supervisory Committee

  Report

• 155 Risk Management Report

This 2021 Annual Report ("Annual Report") is the eighth annual report of CGN Power Co., Ltd. * ("CGN Power", the "Company", "we" or "us") since its listing. We continue to adopt the International Integrated Reporting Framework published by the International Integrated Reporting Council ("IIRC", website:www.theiirc.org) in December 2013 as the major guideline for this Annual Report. In preparing this report, we have also followed the "Environmental, Social and Governance Reporting Guide" of The Stock Exchange of Hong Kong Limited ("Hong Kong Stock Exchange") as amended on December 18, 2019 and referred to other relevant documents and guidelines such as "The Standards for Contents and Formats of Information Disclosure by Companies Publicly Offering Securities No. 2 - Contents and Formats of Annual Reports (Revision 2021)" of China Securities Regulatory Commission (the "CSRC") as published on June 28, 2021.

For continuous improvement of the quality of annual reports, we welcome valuable advice on the contents and formats of this Annual Report. Please give us feedback by filling out the feedback form at the end of this Annual Report.

Unless otherwise defined in this Annual Report, the terms used in this Annual Report shall have the same meanings as those defined in the 2020 Annual Report of the Company dated April 12, 2021. This Annual Report has been prepared in Chinese and English respectively. In case of discrepancy, the Chinese version shall prevail.

For 2021, we continue to publish the Environmental, Social and Governance Report (the "ESG Report") separately to report to the community, the public, shareholders and all relevant parties on more environmental, social and governance practices in 2021. For details, please refer to the 2021 Environmental, Social and Governance Report (the "2021 ESG Report") published on our website atwww.cgnp.com.cnon March 18, 2021.

Business at a Glance for the Year

CGN Power Co., Ltd. was established on March 25, 2014, listed on the Main Board of the Hong Kong Stock Exchange on December 10, 2014, and listed on the Shenzhen Stock Exchange ("SZSE") on August 26, 2019.

CGN Power is the sole platform for nuclear power generation of China General Nuclear Power Corporation (中國廣核集團有限公司) ("CGNPC"). We build, operate and manage nuclear power plants ("NPP(s)"), sell electricity generated by these NPPs, and organize to develop the design and research & development ("R&D") of NPPs.

Based on our principle of "Safety First, Quality Foremost, Pursuit of Excellence" and our work style focusing on "Strict Compliance, Prudent Decision-making, Detail-oriented and Fact-based Approach", we are committed to nuclear power-based electricity supply and services, to create the best benefits for our customers, shareholders, employees and society, and strive to become a world-class nuclear power supplier and service provider with international competitiveness.

2021 Major Events

On August 26, 2021, the Nuclear Energy Industry Medium and Long-term Development Strategy and 14th Five-Year Plan《( 核能產業中長期 發展戰略及"十四五"規劃》) of the Company was approved by the Board.

On July 31, 2021, Hongyanhe Unit 5 commenced commercial operation.

On May 26, 2021, the Dividend Distribution Plan for the Coming Five Years (2021-2025) of the Company was approved at the 2020 AGM.

Note: The nuclear power generating units under construction managed by the Group as entrusted by the controlling shareholder.

CGN Power Co., Ltd.2021 Annual Report

Business at a Glance for the Year

Key Data for 2021

RMB 80,678.7 million,Dividend per Share RMB 0.084 (tax inclusive)RMB 36,757.6 million

increasing from 2020 by 14.30%

increasing from 2020 by 5.00%increasing from 2020 by 1.95%

25 GENERATING UNITS IN OPERATION:

7 GENERATING UNITS UNDER CONSTRUCTIONNOTE

with an installed capacity of 28,261MW

with an installed capacity of 8,299MW

accounting for

41.01%

in mainland China

Note:Including generating units managed by the Company as entrusted by associates of the Company and the controlling shareholder.

EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION EBITDA

NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY

NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY

(excluding the effect of non-recurring gains or losses Note)

RMB 36,762.7 millionRMB 9,732.6 million

(excluding the effect of non-recurring gains or losses)

RMB 9,729.9 million

increasing from 2020 by 2.48%

increasing from 2020 by 1.78%

increasing from 2020 by 3.42%

Note:For the details of non-recurring gains or losses, please refer to the notes to the financial statements in this report.