Dongfang Electric : PRELIMINARY ANNOUNCEMENT OF 2020 INTERIM RESULTS

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

PRELIMINARY ANNOUNCEMENT OF 2020 INTERIM RESULTS

RESULTS HIGHLIGHTS

Total operating revenue of the Group in the first half of 2020 amounted to RMB17,753 million, representing an increase of 12.07% compared with the same period of the previous year;

Net profit of the Group attributable to shareholders of the parent company in the first half of 2020 amounted to RMB954 million, representing an increase of 30.79% compared with the same period of the previous year;

Earnings per share of the Group in the first half of 2020 amounted to RMB0.31, as compared with RMB0.24 for the same period of the previous year;

New orders of the Group in the first half of 2020 amounted to RMB25,887 million; and

The Board does not recommend the payment of an interim dividend.

The board (the "Board") of directors (the "Directors") of Dongfang Electric Corporation Limited (the "Company") is pleased to announce the unaudited interim consolidated results of the Company and its subsidiaries (collectively, the "Group") for the six months ended 30 June 2020 (the "Period" or "Reporting Period") prepared in accordance with the China Accounting Standards for Business Enterprises. The unaudited interim consolidated results have been reviewed by the audit and review committee of the Company.

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1. FINANCIAL INFORMATION

(Amounts are expressed in RMB unless otherwise stated)

Consolidated Statement of Financial Position

30 June 2020

Item	Notes		30 June 2020	31 December 2019
			(Unaudited)		(Audited)
Current Assets:
Cash and cash equivalents		29,572,496,641.84		30,479,728,679.02
Clearing provision			-		-
Funds for lending			-	469,762,000.00
Held-for-trading financial
assets		2,379,042,891.01		1,606,664,199.35
Derivative financial assets			-		-
Notes receivable		2,020,516,077.20		1,518,715,778.12
Accounts receivable	3	7,701,159,476.45		6,215,286,948.87
Receivables financing		1,005,202,251.96		1,816,408,795.25
Prepayments		2,725,962,363.96		2,467,333,662.69
Premiums receivable			-		-
Amounts receivable under
reinsurance contracts			-		-
Reinsurer's share of insurance
contract reserves			-		-
Other receivables		752,750,630.61		989,033,924.05
Financial assets purchased
under resale agreements		2,540,000,000.00		2,490,000,000.00
Inventories		13,758,239,335.44		13,142,022,679.41
Contract assets		7,733,552,158.13		7,290,368,005.89
Assets held for sale			-		-
Non-current assets due within
one year			-		-
Other current assets			982,415,342.07			913,567,655.40
Total Current Assets		71,171,337,168.67		69,398,892,328.05

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Item	Notes	30 June 2020	31 December 2019
		(Unaudited)		(Audited)
Non-current Assets:
Loans and advances		1,227,511,850.50		1,025,152,847.76
Debt investments		4,923,102,491.00		3,756,152,435.75
Other debt investments		-		-
Long-term receivables		301,753,716.39		390,738,271.80
Long-term equity investments	10	1,775,202,520.72		1,717,650,083.08
Other investments in equity
instruments		2,744,649.47		4,889,859.48
Other non-current financial
assets		-		-
Investment properties		169,349,801.97		175,495,834.49
Fixed assets		5,007,042,108.49		5,279,930,962.85
Constructions in process		446,895,153.14		382,771,135.73
Productive biological assets		-		-
Oil and gas assets		-		-
Right-of-use assets		226,627,440.94		291,388,386.25
Intangible assets		1,600,216,271.59		1,632,833,016.54
Development expenditure		-		-
Goodwill		-		-
Long-term deferred expenses		40,328,894.83		50,792,966.40
Deferred tax assets		2,925,530,857.16		2,892,961,105.86
Other non-current assets		2,918,723,749.98		2,619,316,321.68
Total Non-current Assets		21,565,029,506.18		20,220,073,227.67
TOTAL ASSETS		92,736,366,674.85		89,618,965,555.72

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Item	Notes		30 June 2020	31 December 2019
			(Unaudited)		(Audited)
Current Liabilities:
Short-term Loans		36,380,000.00		13,850,000.00
Loans from the central bank		67,036,458.15			-
Taking from banks and other
financial institutions		424,770,000.00			-
Held-for-trading financial
liabilities			-		-
Derivative financial liabilities			-		-
Notes payable		3,192,449,801.80		3,650,947,932.56
Accounts payable	4	13,999,434,472.05		11,833,812,175.96
Receipts in advance			-	28,000,000.00
Contract liabilities		26,427,359,402.90		25,873,464,019.06
Financial assets sold under
repurchase agreements			-		-
Customer deposits and deposits
from banks and other
financial institutions		4,799,383,336.18		4,999,411,987.90
Funds from securities trading
agency			-		-
Funds from underwriting
securities agency			-		-
Employee benefits payable		668,751,061.69		780,900,223.52
Taxes payable		122,866,642.55		261,045,191.58
Other payables		2,336,783,565.21		1,770,776,404.82
Fees and commissions payable			-		-
Amounts payable under
insurance contracts			-		-
Liabilities as held for sale			-		-
Non-current liabilities due
within one year		123,967,481.10		154,232,008.74
Other current liabilities		73,988,323.36		87,375,624.68
Total Current Liabilities		52,273,170,544.99		49,453,815,568.82

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Item	Notes	30 June 2020	31 December 2019
		(Unaudited)		(Audited)
Non-current Liabilities:
Insurance contract reserves		-		-
Long-term borrowings		622,717,903.80		627,019,323.12
Bonds payable		-		-
Including: Preferred stock		-		-
Perpetual capital securities		-		-
Lease liabilities		108,072,699.30		156,664,637.27
Long-term payables		9,473,942.42		9,600,357.51
Long-term accrued payroll		763,458,350.08		784,413,550.52
Provisions liabilities		6,164,426,273.28		6,280,380,090.91
Deferred income		444,176,838.78		470,607,566.07
Deferred tax liabilities		37,432,742.46		38,031,490.91
Other non-current liabilities		-		-
Total Non-current Liabilities		8,149,758,750.12		8,366,717,016.31
TOTAL LIABILITIES		60,422,929,295.11		57,820,532,585.13

- 5 -

Item	Notes		30 June 2020	31 December 2019
			(Unaudited)		(Audited)
OWNERS' EQUITY：
Share capital		3,118,792,130.00		3,090,803,431.00
Other equity instruments			-		-
Including: Preferred stock			-		-
Perpetual capital securities			-		-
Capital reserves		11,331,960,245.62		11,345,339,174.91
Less: Treasury shares		165,972,988.00		165,972,988.00
Other comprehensive income		(21,767,001.52)	(24,418,047.58)
Special reserves		91,599,565.07		76,102,748.09
Surplus reserves		907,174,974.45		907,174,974.45
General risk reserves			-		-
Retained profits	5	14,541,621,676.76		14,225,616,456.64
Total owners' equity
attributable to equity holders
of the parent company		29,803,408,602.38		29,454,645,749.51
Non-controlling Shareholders'
equity		2,510,028,777.36		2,343,787,221.08
Total owners' equity		32,313,437,379.74		31,798,432,970.59
TOTAL LIABILITIES AND
OWNERS' EQUITY		92,736,366,674.85		89,618,965,555.72

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Consolidated Income Statement

For the six months ended January-June 2020

(Amounts are expressed in RMB unless otherwise stated)

Item	Notes	January-June 2020	January-June 2019
			(Unaudited)	(Unaudited)
I.	Total revenue	6	17,752,970,500.73	15,841,165,600.17
	Including: Operating income		17,220,493,375.80	15,309,891,387.85
	Interest income		531,303,054.28	531,274,212.32
	Premium earned		-	-
	Fee and commission income		1,174,070.65	-
II.	Total operating costs		16,342,701,521.47	14,529,860,250.66
	Including: Operating costs		13,952,748,578.34	11,993,909,056.13
	Interest expenses		47,110,050.60	40,719,217.85
	Fee and commission expenses		538,467.32	594,693.41
	Surrenders		-	-
	Net claims		-	-
	Net provision for insurance
	contract		-	-
	Insurance policyholder
	dividends		-	-
	Expenses for reinsurance
	accepted		-	-
	Tax and levies		98,761,632.25	133,237,744.74
	Sales expenses		365,245,712.90	461,061,153.42
	Administrative expenses		1,032,305,007.66	1,144,703,122.20
	R&D expenses		882,438,413.90	785,932,757.27
	Financial expenses		(36,446,341.50)	(30,297,494.36)
	Including: Interest expenses		14,328,027.89	16,965,368.96
	Interest income		18,780,641.10	41,526,780.39

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Item		Notes	January-June 2020	January-June 2019
			(Unaudited)	(Unaudited)
Add:	Other gains		52,270,749.46	35,193,001.67
	Investment income (Loss is
	indicated by "-")		113,443,156.99	150,623,380.79
	Including: Income from
	investments in
	associates and
	joint ventures		72,334,525.29	101,336,724.54
	Derecognition
	gains on
	financial assets
	measured at
	amortized cost		-	-
	Foreign exchange gains (losses
	are indicated by ("-")		413,609.59	407,997.15
	Gains from net exposure
	hedges (losses are indicated
	by "-")		-	-
	Gains from changes in fair
	values (losses are indicated
	by "-")		(110,146,758.23)	(78,884,253.33)
	Credit impairment loss (losses
	are indicated by "-")		(74,067,558.00)	(176,131,592.81)
	Impairment loss of assets
	(losses are indicated by "-")		(214,254,727.16)	(347,801,337.28)
	Gains from disposal of assets
	(losses are indicated by "-")		4,914,531.35	1,200,600.28
III. Operating profit (Loss is indicated by "-")		1,182,841,983.26	895,913,145.98
Add: Non-operating income		23,303,528.84	36,121,605.45
Less: Non-operating expenses		56,519,445.40	14,056,491.92
IV. Total profit (Total loss is indicated by "-")		1,149,626,066.70	917,978,259.51
Less: Income tax expenses	7	130,091,593.13	131,858,274.81

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Item	Notes January-June 2020	January-June 2019
	(Unaudited)	(Unaudited)
V. Net profit (Net loss is indicated by "-"))	1,019,534,473.57	786,119,984.70
(I). Classified by continuing operations	-	-
1. Net profit from continuing operations
(net loss indicated by "-")	1,019,534,473.57	786,119,984.70
2. Net profit from discontinued
operations (net loss indicated
by "-")	-	-
(II). Classified by ownership
1. Net profit attributable to
shareholders of parent company
(net loss indicated by "-")	954,371,842.93	729,692,676.27
2. Profit or loss attributable to
non-controlling interest
(net loss indicated by "-")	65,162,630.64	56,427,308.43
VI. Other comprehensive income ("OCI") (net
of tax)	3,860,709.34	2,630,247.87
OCI attributable to owners of the parent
company (net of tax)	3,636,809.90	2,609,900.25
(I) OCI that will not be reclassified to
profit and loss	1,158,533.99	-
1. Changes arising from re-
measurement benefit plans
recognized	-	-
2. OCI by equity method that will
not be reclassified to profit
and loss	-	-
3. Changes in fair value of
investment in other equity
instruments	1,158,533.99	-
4. Changes in fair value of the
Company's own credit risks	-	-

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Item		Notes	January-June 2020	January-June 2019
			(Unaudited)	(Unaudited)
(II) OCI that will be reclassified to
	profit and loss		2,478,275.91	2,609,900.25
1.	OCI by equity method that will
	be reclassified to profit and
	loss		(10,413.15)	-
2.	Changes in fair value of other
	debt investment		-	-
3.	The amount of financial assets
	reclassified into OCI		-	-
4.	Credit impairment provisions
	for other debt investment		-	-
5.	Reserve on cash flow hedges		-	-
6.	Exchange differences from
	translation of financial
	statements		2,488,689.06	2,,609,900.25
7.	Others		-	-
OCI attributable to non-controlling interest,
(net of tax)		223,899.44	20,347.62
VII.Consolidated income		1,023,395,182.91	788,750,232.57
Consolidated income attributable to owners
of parent company		958,008,652.83	732,302,576.52
Consolidated income attributable to
non-controlling interests		65,386,530.08	56,447,656.05
VIII. Earnings per share:
(1) Basic earnings per share (RMB/share)	8	0.31	0.24
(2) Diluted earnings per share
(RMB/share)	8	0.31	0.24

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NOTES TO THE FINANCIAL INFORMATION

For the six months ended 30 June 2020

(Amounts are expressed in RMB unless otherwise stated)

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
2. 1. Basis of preparation
      Based on the going-concern assumption and transactions and events actually incurred, the financial statements have been prepared by the Company in accordance with the Accounting Standards for Business Enterprises - Basic Standard and specific accounting standards, the Accounting Standards for Business Enterprises - Application Guide, interpretations to the Accounting Standards for Business Enterprises and the other related provisions (hereafter collectively referred to as "ASBEs") by the Ministry of Finance, No. 15 Information Disclosures Regulations for Companies Offering Shares in Public - General Rules of Preparing Financial Reports issued by China Securities Regulatory Commission, and disclosure requirements under Rules Governing the Listing of Securities on The Stock Exchanges of Hong Kong Limited and Hong Kong Companies Ordinance.
3. S I G N I F I C A N T A C C O U N T I N G P O L I C I E S A N D A C C O U N T I N G ESTIMATES
4. 1. Statement on compliance with the Accounting Standards for Business Enterprises
      The financial statements meet the requirements of the Accounting Standards for Business Enterprises issued by the Ministry of Finance, and truly and completely reflect the consolidated financial position of the Company as at 30 June 2020 and the consolidated operating results from January to June 2020.

1. Functional currency
   The functional currency of the Company is Renminbi (RMB).

3. ACCOUNTS RECEIVABLE

Item		30 June 2020	31 December 2019
		(Unaudited)		(Audited)
Accounts receivable	12,250,912,587.73	10,477,791,761.13
Less: Provision for bad debts	(4,549,753,111.28)	(4,262,504,812.26)
Net accounts receivable	7,701,159,476.45	6,215,286,948.87

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Aging analysis of accounts receivable
Aging		30 June 2020	31 December 2019
		(Unaudited)		(Audited)
Within 1 year	5,085,659,289.21		3,584,734,118.98
1 to 2 years	1,588,681,717.37		1,220,225,381.88
2 to 3 years	834,279,457.50		1,242,701,454.24
3 to 4 years	1,147,710,652.61		1,120,166,619.62
4 to 5 years	837,970,428.60		859,218,842.68
Over 5 years	2,756,611,042.44		2,450,745,343.73
Sub-total	12,250,912,587.73		10,477,791,761.13
Less: Provision for bad debts	(4,549,753,111.28)	(4,262,504,812.26)
Total	7,701,159,476.45		6,215,286,948.87
Note: The Group conducted the aging analysis for accounts receivable based on the dates of
relevant invoices and settlement statements.
4. ACCOUNTS PAYABLE
Aging analysis of accounts payable
		30 June 2020 31 December 2019
Aging		(Unaudited)		(Audited)
Within 1 year (inclusive)	11,911,024,870.91		9,606,589,127.35
1 to 2 years (inclusive)	683,037,559.38		803,022,569.41
2 to 3 years (inclusive)	538,330,022.88		501,740,777.39
Over 3 years		867,042,018.88			922,459,701.81
Total	13,999,434,472.05		11,833,812,175.96

The Company conducted the aging analysis for accounts payable based on the dates of relevant invoices and settlement statements.

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5. RETAINED PROFITS
Item	30 June 2020	31 December 2019
	(Unaudited)		(Unaudited)
Retained profits at the beginning of
the Period	14,255,616,456.64	13,324,105,405.23
Add: Net profits attributable to owners
of parent company for the Period	954,371,842.93	729,692,676.27
Less: Withdrawal of statutory surplus
reserves	-		-
Withdrawal of discretionary surplus
reserve	-		-
Withdrawal of general risk reserve	-		-
Dividend payable on ordinary
shares	639,352,386.65	339,988,377.41
Ordinary shares dividends
transferred to share capital	-		-
Carry-forward of other
comprehensive income for
retained earnings	(985,763.84)		-
Retained profits at the end of the Period	14,541,621,676.76	13,713,809,704.09

6. OPERATING REVENUE AND OPERATING COST

	For the six months ended 30 June 2020	For the six months ended 30 June 2019
		(Unaudited)	(Unaudited)
				Cost/Interest			Cost/Interest
				expenses/Fee and			expenses/Fee and
				commission			commission
Item		Revenue		expenses	Revenue		expenses
Principal operations	16,971,221,005.09	13,815,417,335.42		15,131,864,131.73	11,861,171,565.55
Other operations	249,272,370.71	137,331,242.92		178,027,256.12	132,737,490.58
Interest income	531,303,054.28	47,110,050.60		531,274,212.32	40,719,217.85
Fee and commission income		1,174,070.65		538,467.32		-		594,693.41
Total	17,752,970,500.73	14,000,397,096.26		15,841,165,600.17	12,035,222,967.39

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7. INCOME TAX EXPENSES
	For the	For the
	six months ended	six months ended
Item	30 June 2020	30 June 2019
	(Unaudited)	(Unaudited)
Income tax expenses for current period	163,260,092.88		173,152,950.72
Deferred income tax expenses	(33,168,499.75)	（41,294,675.91）
Total	130,091,593.13		131,858,274.81

Except for four overseas subsidiaries of the Company, namely Dongfang Electric (India) Private Limited ( 東 方 電 氣（ 印 度 ）有 限 公 司), Dongfang Electric (Indonesia) Private Limited ( 東 方 電 氣（印 尼）有 限 公 司), Dongfang Electric Machinery Venezuela Co., Ltd. ( 東 方 電 機 委 內 瑞 拉 有 限 責 任 公 司) and Laos Nam Mang Power Company Limited ( 老 撾 南 芒 河 電 力 有 限 公 司), which are subject to corporate income tax as stipulated by their respective local laws, Dongfang Electric Wind Power (Fujian) Co., Ltd. ( 東 方 電 氣 風 電（福 建 ）有 限 公 司) and Science and Technology Institute Co., Ltd. of Dongfang Electric Corporation ( 東 方 電 氣 集 團 科 學 技 術 研 究 院 有 限 公 司) is subject to corporate income rate applicable to small and low-profitenterprise and certain other subsidiaries which enjoy a preferential tax rate of 15%, the remaining subsidiaries are subject to corporate income tax at a rate of 25%.

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8. EARNINGS PER SHARE

1. Basic earnings per share
   Basic earnings per share are computed by dividing the consolidated net profit attributable to the holders of ordinary shares of the Parent Company by the weighted average number of the Parent Company's outstanding ordinary shares.

	For the	For the
	six months ended	six months ended
Item	30 June 2020	30 June 2019
	(Unaudited)	(Unaudited)
Combined net profit attributable to
Parent Company's shareholders of
ordinary shares	954,371,842.93		729,692,676.27
Combined net profit attributable to
Parent Company's shareholders of
ordinary shares (after deducting
non-recurring profit or loss)	982,498,415.86		717,476,185.36
Weighted average number of
outstanding ordinary shares of the
Company	3,090,803,431.00		3,090,803,431.00
Basic earnings per share (RMB per
share)	0.31	0.24
Basic earnings per share (RMB
per share) (after deducting non-
recurring profit or loss)	0.32		0.23

(2) Process for calculating the weighted average number of ordinary shares:

	For the	For the
	six months ended	six months ended
Item	30 June 2020	30 June 2019
	(Unaudited)	(Unaudited)
Number of outstanding ordinary
shares at the beginning of the year	3,090,803,431.00		3,090,803,431.00
Weighted average number of
outstanding ordinary shares	3,090,803,431.00		3,090,803,431.00

- 15 -

Weighted average of the Company's outstanding ordinary shares

• Share capital at the beginning of the year + shares issued in the current period * months counted from the next month following share increase to the end of the Reporting Period/the number of months during the Reporting Period

=3,090,803,431.00

Basic earnings per share

• the consolidated net profit attributable to the holders of ordinary shares of the Parent Company/the weighted average number of the outstanding ordinary shares

=954,371,842.93/3,090,803,431.00=0.31

1. Diluted earnings per share
   Since there was no dilution effect on the share equity during the Period (no dilution effect during the same period of the previous year), the diluted earnings per share equals to the basic earnings per share.

9. SEGMENT INFORMATION

According to the Company's internal organization structure, management requirement and internal reporting system, the Company's operating business are divided into five reportable segments, which are determined on the basis of the internal organization structure, management requirement and internal reporting system. The Company's management regularly evaluates the operating results of these reportable segments to determine the allocation of resources and assess its performance. Main products and labor services provided by each reportable segment of the Company are respectively as follows: high-efficient clean energy equipment, renewable energy equipment, engineering and trade, modern manufacturing services, and emerging growth business.

Information on segment reporting are disclosed according to the accounting policies and measurement standards adopted by each segment to report to the management, which are consistent with the accounting and measurement basis adopted when the financial statements are prepared.

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Reportable segments for the first half of 2020

		High-efficient		Renewable					Modern
		clean energy		energy		Engineering		Manufacturing		Emerging
Item		equipment		equipment		and trade	services business		growth business		Summary		Write-off		Total
Operating income	13,592,185,112.09	4,564,167,843.68	2,699,927,065.90	2,166,157,270.73	2,153,252,377.20	25,175,689,669.60	7,422,719,168.87	17,752,970,500.73
Including: External transaction
income	8,455,535,717.65	3,200,435,990.79	2,209,839,088.11	1,972,341,354.37	1,914,818,349.81	17,752,970,500.73		-	17,752,970,500.73
Inter-segment transaction income	5,136,649,394.44	1,363,731,852.89	490,087,977.79	193,815,916.36	238,434,027.39	7,422,719,168.87	7,422,719,168.87		-
Operating cost	6,959,009,656.70	2,759,676,709.49	1,707,443,047.05	954,444,057.52	1,619,823,625.50	14,000,397,096.26	7,321,691,430.47	6,678,705,665.79
Cost written off	5,223,350,012.65	1,279,454,842.75	489,404,505.95	148,817,783.74	180,664,285.38	7,321,691,430.47	7,321,691,430.47		-
Expenses for the period		-		-		-		-		-	1,887,208,401.86	(356,334,391.10)	2,243,542,792.96
Operating profit (loss)	6,633,175,455.39	1,804,491,134.19	992,484,018.85	1,211,713,213.21	533,428,751.70	9,288,084,171.48	8,105,242,188.22	1,182,841,983.26
Total assets																165,447,668,703.87	72,711,302,029.02	92,736,366,674.85
Including: Amount of substantial
impairment loss on a
single asset
Total liabilities																112,382,067,139.28	51,959,137,844.17	60,422,929,295.11
Supplemental information
Capital expenditure																	-		-		-
Recognized impairment loss of the
current period																252,951,055.57		18,042,937.30	234,908,118.27
Including: Amortization of
impairment of
goodwill
Depreciation and amortization
expenses																503,092,476.30			-	503,092,476.30
Non-cash expenses other than
impairment loss, depreciation
and amortization																	-		-		-

- 17 -

Reportable segments for the first half of 2019

		High-efficient		Renewable					Modern
		clean energy		energy		Engineering		manufacturing		Emerging
Item		equipment		equipment		and trade		services business		growth business		Summary		Write-off		Total
Operating income	14,744,369,809.50	3,135,231,820.71	1,186,441,080.25	2,186,149,761.57	1,880,662,411.24	23,132,854,883.27	7,291,689,283.10	15,841,165,600.17
Including: External transaction
income	8,710,411,128.52	2,581,451,833.10	1,314,457,623.64	1,877,141,526.89	1,357,703,488.02	15,841,165,600.17		-	15,841,165,600.17
Inter-segment transaction income	6,033,958,680.98	553,779,987.61	(128,016,543.39)	309,008,234.68	522,958,923.22	7,291,689,283.10	7,291,689,283.10		-
Operating cost	12,926,678,413.06	2,771,937,804.43	952,961,354.78	1,558,443,931.70	1,420,391,152.83	19,630,412,656.80	7,595,189,689.41	12,035,222,967.39
Cost written off	6,184,935,179.51	543,816,982.22	(117,427,474.82)	620,506,544.67	363,358,457.83	7,595,189,689.41	7,595,189,689.41		-
Expenses for the period		-		-		-		-		-	2,170,891,314.37	(323,745,968.90)	2,494,637,283.27
Operating profit (loss)	1,817,691,396.44	363,294,016.28	233,479,725.47	627,705,829.87	460,271,258.41	1,331,550,912.10	435,637,766.12	895,913,145.98
Total assets
															155,995,906,230.91	69,632,570,964.96	86,363,335,265.95
Including: Amount of substantial
impairment loss on a
single asset
Total liabilities																104,307,857,816.37	49,428,761,531.73	54,879,096,284.64
Supplemental information
Capital expenditure																	-		-		-
Recognized impairment loss of the
current period																451,465,825.81		(72,467,104.28)	523,932,930.09
Including: Amortization of
impairment of
goodwill
Depreciation and amortization
expenses																459,164,757.66			-	459,164,757.66
Non-cash expenses other than
impairment loss, depreciation
and amortization																	-		-		-

- 18 -

10.	LONG-TERM EQUITY INVESTMENTS
																																						Unit: RMB
															Increase/decrease for the Period
																																											Balance of
															Recognized		Adjustment						Announcement									Provision for			provision for
			Balance at											investment		to other						of distribution									impairment		impairment at
			the beginning			Follow-on		Decrease in			loss/gain by		comprehensive		Other change in		of cash dividends					Balance at the	made in the			the end of
Invested companies		of the year			investment		investment		equity method		income			equity			or profit		Others		end of the Period		Period			the Period
1. Joint ventures
MHPS Dongfang Boiler Co., Ltd	201,740,045.96			-			-	703,513.23		-			-				-		-	202,443,559.19		-				-
Dongfang Framatome Nuclear Pump
Co., Ltd		197,683,241.32			-			-	299,373.24		-			-				-		-	197,982,614.56		-				-
Dongfang Electric (Xichang)
Hydrogen Energy Co., Ltd.	6,797,753.04			-			-	4,382.48		-			-				-		-	6,802,135.52		-				-
Sub-total
	406,221,040.32				-			-	1,007,268.95			-			-				-		-	407,228,309.27		-				-
2. Associated companies
Sichuan Wind Power Industry
Investment Co., Ltd	377,037,984.14		16,600,000.00			-	54,217,940.02				-			-			-		-	447,855,924.16				-			-
Huadian Longkou Wind Power Co.,
Ltd		69,411,440.90				-			-	6,175,494.58				-			-	19,787,607.31			-	55,799,328.17				-			-
Inner Mongolia Energy Power
Hongnijing Wind Power Co., Ltd.	24,089,758.61				-			-	1,718,798.05				-			-	7,017,408.83			-	18,791,147.83				-			-
CLP Combined Heavy Gas Turbine
Technology Co., Ltd.	131,727,987.41				-			-	2,744.55				-			-			-		-	131,730,731.96				-			-
Inner Mongolia Mengneng
Sanshengtai Wind Power Co., Ltd.	20,507,393.99				-			-	1,476,429.17				-			-	3,460,131.28			-	18,523,691.88				-			-
Inner Mongolia Mengneng Wulan
New Energy Co., Ltd.	43,555,480.19				-			-	806,089.88				-			-	3,828,807.76			-	40,532,762.31				-			-
Mitsubishi Heavy Industries
Dongfang Gas Turbine
(Guangzhou) Co., Ltd	501,521,321.70				-			-	2,520,517.33				-			-			-	5,099,899.58	509,141,738.61				-			-
Sichuan Dongshu New Material Co.,
Ltd.		138,140,317.21				-			-	5,353,757.03			(11,032.05)			-	2,377,000.00			-	141,106,042.19				-			-
Leshan City Dongle Heavy Piece
Handling Co., Ltd.	3,414,983.64				-			-	(944,514.27)			-			-			-		-	2,470,469.37				-			-
Liangshan Fengguang New Energy
Operation and Maintenance Co.,
Ltd		2,022,374.97				-			-			-		-			-			-		-	2,022,374.97				-			-
Sub-total
	1,311,429,042.76		16,600,000.00			-	71,327,256.34			(11,032.05)			-	36,470,955.18		5,099,899.58	1,367,974,211.45				-			-
Total
	1,717,650,083.08		16,600,000.00			-	72,334,525.29			(11,032.05)			-	36,470,955.18		5,099,899.58	1,775,202,520.72				-			-

- 19 -

11. DIVIDENDS

The Company paid 2019 final dividend of RMB2.05 for every 10 shares (before tax) totalling a cash distribution of RMB639,352,386.65 (before tax) to its shareholders on 24 August 2020, with the approval at the 2019 annual general meeting held on 24 June 2020.

The Board does not recommend the payment of interim dividend for the six months ended 30 June 2020 (30 June 2019: Nil).

1. MANAGEMENT DISCUSSION AND ANALYSIS Industry Information
   In the first half of 2020, China's economy faced severe challenges such as the impact of COVID-19 epidemic. Under the implementation of a series of policies, China's economic operation first fell and then rose and recovered steadily. The main indicators have gradually picked up. The gross domestic product (GDP) for the second quarter of 2020 increased by 3.2% as compared with the same period of the previous year, turning negative to positive from the decrease of 6.8% in the first quarter of 2020, and the overall electricity consumption situation in the whole community continued to improve. From January to June of 2020, the national total electricity consumption was 3,354.7 billion kWh, representing a year-on- year decrease of 1.3%, of which, the national total electricity consumption in June of 2020 was 635 billion kWh, representing a year-on-year increase of 6.1%. The investment in power engineering of major power generation enterprises in the PRC increased by 51.5% as compared with the same period of the previous year, of which the investment in hydropower and wind power increased by 25.3% and 152.2% as compared with the same period of the previous year, respectively, while the investment in nuclear power was slightly lower than that of the previous year, and the investment in thermal power decreased by 31.9% as compared with the same period of the previous year.

- 20 -

Overall Business Review

The Company engages in the power equipment industry, adhering to the objective of "to create value and to enjoy fruits together ( 共 創 價 值、 共 享 成 功)", committed to becoming a world leading manufacturer of energy and equipment and service provider with international competitiveness. The Company's main products include 50,000-1 million kilowatt-class thermal power generating units, 50,000-1 million kilowatt-classhydro-electric turbine generator units, 1-1.75 million kilowatt-class nuclear power units, heavy-duty gas turbine equipment, 1.5-10megawatt-class wind power equipment and high-efficiency solar power plants equipment, hydrogen energy and fuel cell automotive power system, large environmental protection and water treatment equipment, power electronics and control system, new energy batteries and energy storage system and intelligent equipment. The Company has created a product structure where six power generations, namely "hydropower, thermal power, nuclear power, wind power, steam power, and solar power generation" are simultaneously developed in a coordinated way.

The Company is mainly engaged in developing, designing, manufacturing and selling large, advanced sets of equipment for high-efficiency and clean generation of hydropower, thermal power, nuclear power, wind power, steam power and solar thermal. The Group is also engaged in such related business as providing global electricity operators with construction contracting and services. As one of the largest R&D and manufacturing bases of power generation equipment and one of the mega enterprises for power-plant project contracting in globe, the Company has ranked top globally for successive years in terms of production volume of power generation equipment. With its power generation equipment and service business covering nearly 80 countries and regions, the Company is highly competitive and influential in the field of power generation equipment. In the first half of 2020, there was no material change to the principal business of the Company.

Discussion and Analysis of Operations

In the first half of 2020, facing with the impact of the COVID-19 epidemic, the Company adhered to scientific epidemic prevention and control according to the deployment of the Party and the state, implemented the resumption of work and production, continued to promote the high-quality development of the Company, and achieved "Double Victories" in epidemic prevention and control as well as in production and operation.

- 21 -

Growth in Production and Operation Against the Trend

In the first half of 2020, the Company overcame the adverse effects of the pandemic, made unremitting efforts to manage well in all aspects of production and operation, and consolidated and enhanced the good momentum of high- quality development. During the Reporting Period, the Company recorded a total operating revenue of RMB17.753 billion, representing an increase of 12.07% over the same period of the previous year; net profit attributable to shareholders of the Company was RMB954 million, representing an increase of 30.79% over the same period of the previous year; and earnings per share of RMB0.31. Consolidated gross profit margin was 21.14%.

Capacity of Power Generation Equipment

During the Reporting Period, the Company produced power generation equipment with total capacity of 12,494.7 MW, representing an increase of 33.86% as compared with the same period of the previous year. The equipment included 4,530.4 MW hydro-electric turbine generator units (17 units), up by 115.61% as compared with the same period of the previous year; 7,068 MW steam turbine generators (68 generators), up by 2.66% as compared with the same period of the previous year; 896.3 MW wind turbine generator sets (342 sets), up by 157.56% as compared with the same period of the previous year; 6,091.4 MW power station boilers (22 boilers), down by 18.77% as compared with the same period of the previous year; and 4,122.5 MW power station steam turbines (51 turbines), down by 55.76% as compared with the same period of the previous year.

Orders Fulfillment

Under the impact of COVID-19 pandemic and the economic downturn, the Company overcame difficulties and actively explored the market. In the first half of 2020, the Company obtained new orders in the amount of RMB25.887 billion, representing a year-on-year increase of 34.4%. In the wind power segment, the Company continued to strengthen market development efforts and seize orders. In the first half of 2020, the Company obtained new orders in the amount of RMB8 billion, launched high-power offshore wind turbines, and won the bid for batch orders for 10MW units-Fujian Changle Offshore 100 MW offshore wind power project; Batch orders for 7MW units were placed in two cities consecutively, and won the bid for the offshore wind power projects of 300 MW in Yangjiang, Guangdong and 300 MW in Laizhou, Shandong. In respect of the international business in the first half of 2020, it has overcome the adverse impact of the COVID-19 pandemic and the rapid changes in the international environment. It has successfully signed a contract for the equipment supply of the Julino Hydropower Station in Tanzania, which is a unit contract for China's overseas hydropower project with the largest capacity; a new breakthrough was made in the overseas gas turbine market, and the Saidepu Gas Turbine Project in Bangladesh has taken effect successfully.

- 22 -

Deepening Reform

During the Reporting Period, the Company mainly promoted the reform of the "three systems" and the reform of its subordinate secondary enterprises with mixed ownership. As for the reform of the "three systems", the Company established the assessment and evaluation mechanisms of the reform of the "three systems", implemented the professional manager system in Dongfang Electric Wind Power Co., Ltd. ("Dongfang Electric Wind Power") and Dongfang Electric (Chengdu) Hydrogen Fuel Cell Technology Co., Ltd. and generally conducted a tenure system and the contractual management of the managers in other secondary enterprises. Dongfang Electric Wind Power and DEC Dongfang Boiler Group Co., Ltd., the subsidiaries of the Company, have been included in the pilot enterprises of "Double Hundred Actions" plan. Dongfang Wind Power has been undergoing the shareholding listing of the mixed ownership reform, etc.

Scientific and Technological Innovation

The Company strengthened top-level design, insisted on system innovation, and fully promoted three major innovation projects: key and core technology research, product innovation and optimization, and intelligent manufacturing transformation. Major development projects such as the million-kilowatt hydropower unit in Baihetan and the 50MW gas turbine rotor have overcome the adverse impact of the pandemic and have continued to advance with orderly progress under control. The 10MW offshore wind power unit with the largest single-unit capacity in the Asia-Pacific region have been successfully connected to the grid for power generation. "Digital workshop construction project for intelligent manufacturing of the large-scale clean and efficient power generation equipment" of Dongfang Electric passed the national inspection and acceptance.

Improvement in Business Management

The Company insisted on seeking benefits from management, continuously enhancing the management ability and improving management level. Moreover, it accelerated the management informatization and formulated and implemented the overall planning scheme for the construction of financial shared service system. In addition, it vigorously promoted the target cost management and strengthened the rigid constraint of budget. Furthermore, it effectively intensified the quality management and formulated the Management Measures for Quality and Safety Status Report. No material quality accident occurred in the first half of 2020.

- 23 -

1. Analysis of Principal Business

1. Analysis of changes in certain items in the financial statements

	For the	For the
	six months ended	six months ended
Item	30 June 2020	30 June 2019	Change
	(Unaudited)	(Unaudited)	(%)
Operating revenue	17,220,493,375.80	15,309,891,387.85	12.48
Operating cost	13,952,748,578.34	11,993,909,056.13	16.33
Selling expenses	365,245,712.90	461,061,153.42	(20.78)
Administrative
expenses	1,032,305,007.66	1,144,703,122.20	(9.82)
Finance costs	(36,446,341.50)	(30,297,494.36)	N/A
R&D expenses	882,438,413.90	785,932,757.27	12.28
Net cash flows
from operating
activities	972,054,379.41	(3,249,813,611.86)	N/A
Net cash flows
from investing
activities	(2,105,228,811.78)	(1,306,576,124.09)	N/A
Net cash flows
from financing
activities	(38,488,150.78)	95,418,061.99	(140.34)

1. The operating revenue for the current period increased by 12.48% from the same period of the previous year, mainly due to the year- on-year increase of 68.12% in engineering and trade, the increase of 23.98% in renewable energy equipment and the increase of 41.03% in emerging growth business.
2. The operating costs for the current period increased by 16.33% from the same period of the previous year, mainly due to the corresponding increase in operating costs as a result of the increase in operating income.
3. The selling expenses for the current period decreased by 20.78% from the same period of the previous year, mainly due to the decrease of 24.10% in sales and service fees, 9.50% in employees remuneration and 48.71% in travel expense.

- 24 -

1. The administrative expenses for the current period decreased by 9.82% from the same period of the previous year, mainly due to the decrease of 4.41% in employees remuneration, 41.01% in insurance expense and 46.73% in travel expense, etc.
2. The finance costs for the current period decreased RMB6,148,800 from the same period of the previous year, mainly due to the increase in foreign exchange gains.
3. The R&D expenses increased year-on-year by 12.28%, which was mainly due to the continued increase in the research and development investment of the Company during the Period.
4. The net cash flows from operating activities for the current period increased RMB4,222 million from the same period of the previous year, which was due to: first, the receivable for the Period represented the year-on year increase; second, the cash inflow for the investment in the financial service by DEC Finance of the Company for the Period represented the year-on-year increase.
5. The cash flows from investing activities for the current period decreased RMB799 million from the same period of the previous year, mainly due to the year-on-year increase in the investment outflow of the bank's wealth management products of DEC Finance of the Company during the Period.
6. The cash flows from financing activities for the current period decreased RMB134 million from the same period of the previous year, mainly due to the year-on-year decrease in cash received from capital injection during the Period.

- 25 -

1. Analysis on Assets and Liabilities

1. Assets and liabilities

												Change in
												proportion
											of balance at the
											end of the current
											period compared
												with the same
			Percentage				Percentage		period of the
		30 June		in total		30 June	in total		end of the
Item	2020		assets	2019	assets		prior year	Note
			(%)				(%)	(%)	(See note below)
Notes receivable	2,020,516,077.20	2.18	3,523,209,806.01		4.08		-42.65		(1)
Non-current assets due
within one year		-		-	8,500,000.00		0.01		-100.00		(2)
Other current assets	982,415,342.07	1.06	441,751,481.47		0.51		122.39		(3)
Other investments in equity
instruments	2,744,649.47	0.00	5,989,859.48		0.01		-54.18		(4)
Constructions in process	446,895,153.14	0.48	287,095,704.88		0.33		55.66		(5)
Right-of-use assets	226,627,440.94	0.24	36,192,597.79		0.04		526.17		(6)
Short-term borrowings	36,380,000.00	0.04	232,417,000.00		0.27		-84.35		(7)
Notes payable	3,192,449,801.80	3.44	2,046,294,554.01		2.37		56.01		(8)
Non-current liabilities due
within one year	123,967,481.10	0.13	16,320,000.00		0.02		659.60		(9)
Long-term borrowings	622,717,903.80	0.67	453,222,718.36		0.52		37.40		(10)
Lease liabilities	108,072,699.30	0.12	35,731,374.49		0.04		202.46		(11)
Long-term payables	9,473,942.42	0.01	26,445,460.52		0.03		-64.18		(12)
Deferred tax liabilities	37,432,742.46	0.04	21,337,057.58		0.02		75.44		(13)

1. Notes receivable for the Period is the classification of notes receivable managed under the business model for the collection of contractual cash flow and held both for sale and transfer into financial assets measured at fair value through other comprehensive income.
2. The decrease in non-current assets due within one year is mainly due to the decrease in loans and advances due within one year.
3. The increase in other current assets is mainly due to the increase in prepaid taxes and tax credits, short-term loans and discounted assets.
4. The decrease in other investments in equity instruments is mainly due to the disposal of some other equity instrument investments.

- 26 -

1. The increase in construction in progress is mainly due to the increase in wind power production base.
2. The increase in right-of-use assets is mainly due to the increase in the leasing of buildings and structures.
3. The decrease in short-term borrowings is mainly due to the repayment of short-term borrowings when due.
4. The increase in notes payable is mainly due to the increase in the settlement of bills.
5. The increase in non-current liabilities due within one year is mainly due to the increase in lease liabilities due within one year.
6. The increase in long-term borrowings is mainly due to the increase in credit borrowings.
7. The increase in lease liabilities is mainly due to the increase in the leasing of buildings and structures.
8. The decrease in long-term payables is mainly due to the decrease in special payables.
9. The increase in deferred tax liabilities is mainly due to temporary differences in tax payable.

2. Gearing ratio
	Amount at Amount at the
	the end of	beginning of	Year-on-
Item	the Period	the year	year increase
			(percentage
			point)
Gearing ratio (%)	65.16	64.52	0.64
Note: Gearing ratio = total liabilities/total assets × 100%

The gearing ratio of the Group was 65.16% at the end of the Period, representing an increase of 0.64 percentage point as compared with the beginning of the year. The risk relating to the asset structure of the Company is in a controllable state.

- 27 -

3. Bank borrowings

As at 30 June 2020, the Group had financial institution (bank) borrowings of RMB36 million due within one year and financial institution (bank) borrowings of RMB623 million due beyond one year. The Company's borrowings are mainly denominated in RMB. In particular, RMB659 million were fixed-rate loans. The Group has maintained a favorable credit rating with banks and a sound financing capacity.

4. Cash and cash equivalents

As at 30 June 2020, the cash and cash equivalents in RMB and US dollars held by the Group accounted for 88.31% and 10.93% of the Group's cash and cash equivalents respectively.

5. Exchange risk management

With the increasing scale of the international operations of the Group, foreign exchange rate risk has become a more important element that affects the Company's operating results. With a view to effectively reduce the impact of fluctuations in foreign currency exchange rates on the Company's financial position and operating results, the Company prudently adopts exchange rate hedging instruments including forward exchange settlement for hedging purpose to limit the risks arising from exchange rate fluctuations.

6. Pledge of assets

As at 30 June 2020, the Company had pledged bank borrowings of RMB428 million (31 December 2019: RMB432 million), which were related to borrowings from financial institutions secured by concession. As at 30 June 2020, net concession value amounted to RMB580 million (31 December 2019: RMB585 million). As at the end of the Period, this part of borrowings was not due and repayable.

- 28 -

1. Analysis of Operations by Industry, Product or Region

1. Total operating revenue by industry and product

						Year-on-
				Year-on-	Year-on-	year increase/
				year increase/	year increase/	decrease in
			Gross profit	decrease in	decrease in	gross profit
By product	Revenue	Cost	margin	revenue	cost	margin
						（percentage
			(%)	(%)	(%)	point）
		Operations by industry
High-efficient clean energy
equipment	8,455,535,717.65	6,959,009,656.70	17.70	(2.93)	3.22	(4.90)
Renewable energy equipment	3,200,435,990.79	2,759,676,709.49	13.77	23.98	23.86	0.08
Engineering and trade	2,209,839,088.11	1,707,443,047.05	22.73	68.12	59.52	4.16
Modern manufacturing
services business	1,972,341,354.37	954,444,057.52	51.61	5.07	1.76	1.58
Emerging growth business	1,914,818,349.81	1,619,823,625.50	15.41	41.03	53.24	(6.74)

1. The Company sought for restructuring and upgrading proactively during the Period. While focusing on the objectives of the "refining the main business operations and developing new business operations", it optimized the allocation of resources and improved its quality control continuously, realizing varying level of income growth in other main products except for thermal power, nuclear power and engineering, which recorded a decrease in revenue. Total operating revenue increased year-on-year by 12.07% during the Period.
2. The operating revenue from high-efficiency clean energy equipment decreased year-on-year by 2.93%, mainly due to a decrease in the scale of sales of thermal power and nuclear power products during the Period. The gross profit margin of high- efficiency clean energy equipment decreased year-on-year by 4.90 percentage points, mainly due to the change in project mix during the Period.
3. The revenue from renewable energy equipment increased year- on-year by 23.98%, mainly due to the year-on-year increase of 41.05% in revenue from hydropower products. The gross profit margin of renewable energy equipment for the Period remained basically flat as compared with the corresponding period of last year.

- 29 -

1. The operating revenue from engineering and trade increased year- on-year by 68.12%, mainly due to the year-on-year increase in revenue from trade. The gross profit margin of engineering and trade increased year-on-year by 4.16 percentage points during the Period, mainly due to the increase in the gross profit margin of engineering business.
2. The operating revenue from modern manufacturing services business increased year-on-year by 5.07%, mainly due to the year- on-year growth in logistics services. The gross profit margin of modern manufacturing services increased year-on-year by 1.58 percentage points, mainly due to the year-on-year increase in the gross profit margin of power plant services.
3. The operating revenue from emerging growth business increased year-on-year by 41.03%, mainly due to the year-on-year growth in revenue from electronic power and intelligent control products and environmental protection products. The gross profit margin of emerging growth business for the Period decreased by 6.74 percentage points as compared with the corresponding period of last year, mainly due to the low gross profit of some environmental products.

2. Total operating revenue by region

			Unit: RMB
			Year-on-
			year increase/
			decrease in
	Total operating	total operating
Region	revenue	revenue
Mainland China	15,436,164,544.32		8.08%
Overseas	2,316,805,956.41		48.59%
Total	17,752,970,500.73		12.07%

- 30 -

(IV) Material Events

There are no material events that have significant impacts on the Company and its subsidiaries since the end of the Period.

1. 1. Prospect for the Second Half of 2020
      The Company will continue to carry out the COVID-19 epidemic prevention and control work, enhance market development, optimize enterprise internal management, strengthen technological innovation and control internal and external risks, so as to ensure steady growth in operating income and continued increase in total profit, and promote high-quality development of the Company.
2. OTHER EVENTS
3. 1. Capital Structure
      On 22 November 2019, the Company considered and approved the Resolution regarding the Restricted A Share Incentive Scheme for 2019 (Draft Amendment) and its Summary at the Company's 2019 first extraordinary general meeting, the 2019 first A Shares class meeting and the 2019 first H Shares class meeting. On the same day, the Company held the 21st meeting of the 9th session of the Board and 14th meeting of the 9th session of Supervisory Committee, at which, the Resolution regarding the First Grant of the Restricted Shares to Participants under the Restricted A Share Incentive Scheme for 2019 was considered and approved. On 7 January 2020, 27,988,699 ordinary A Shares were directly issued to 780 participants under the Restricted A Share Incentive Scheme, and were registered at the Shanghai Branch of China Securities Depository and Clearing Corporation Limited and listed. All of the proceeds generated from the issuance of restricted shares were used for supplementing the Company's working capital.

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As of 30 June 2020, the total share capital of the Company amounted to RMB3,118,792,130, divided into 2,778,792,130 A shares of RMB1.00 per share and 340,000,000 H shares of RMB1.00 per share. The capital structure of the Company is as follows:

		As at 30 June 2020		As at 30 June 2019
				% of total				% of total
				number of				number of
		Number	share capital		Number	share capital
Class of shares		of shares	issued		of shares	issued
A share	2,778,792,130		89.10%	2,750,803,431	89.00%
H share	340,000,000		10.90%	340,000,000	11.00%
Total	3,118,792,130		100%		3,090,803,431		100%

(II) Purchase, Sales or Redemption of Listed Securities of the Company

Neither the Company nor any of its subsidiaries purchased, sold or redeemed any listed securities of the Company during the Reporting Period.

(III) Major Acquisition and Disposal of Subsidiaries and Associates

There were no other major acquisition and disposal of subsidiaries and associates during the six months ended 30 June 2020.

(IV) Capital expenditure commitments and utilization

Significant commitment events as at the balance sheet date

The Company had significant external investment commitments on capital construction and equipment contracted but not yet paid, details of which are set out as follows:

				Unit: RMB'0,000
Item	30 June 2020	31 December 2019
	(Unaudited)		(Audited)
Capital construction	9,502.36		12,416.57
Equipment	11,267.67		12,559.94
Total	20,770.03		24,976.51

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As of 30 June 2020, the Company had significant external investment commitments of RMB207,700,300 on capital construction and equipment contracted but not yet paid, details of which are set out as follows:

							Unit: RMB'0,000
	Name of	Contracted Investment Investment	Expected
	investment	investment		amount		amount investment
Commitment companies	project		amount		paid		unpaid	period
The Company and	capital
its subsidiaries	construction	47,195.19	37,692.83	9,502.36		2020-2023
The Company and
its subsidiaries	equipment	26,268.35	15,000.68	11,267.67		2020-2022
Total		73,463.54	52,693.51	20,770.03

1. Signed lease contracts being performed or to be performed and their financial effects

As at 30 June 2020, the total payment for future minimum rents payable required for irrevocable operating leases of the Company as a lessee are listed in the following periods:

	Six months	As of
	as of 30 June	31 December
Period	2020	2019
	(Unaudited)	(Audited)
Within 1 year	123,803,445.10	160,655,855.87
1-2 years	175,168,573.58	175,168,573.58
2-3 years	6,678,365.93	6,678,365.93
Over 3 years	5,490,030.00	5,490,030.00
Total	311,140,414.61		347,992,825.38

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1. Guarantee to external parties and performance thereof
   As of 30 June 2020, the Company provided financing guarantees for Inner Mongolia Energy Power Hongnijing Wind Power Co., Ltd., Inner Mongolia Mengneng Sanshengtai Wind Power Co., Ltd. and Inner Mongolia Mengneng Wulan New Energy Co., Ltd. with its 20% equity interests in each of above three companies. The guarantees shall be valid from the effective date of the equity pledge agreement until all debts under the financial leasing contract being repaid. The guarantee provided by DEC Dongfang Steam Turbine Co., Ltd. for Mitsubishi Heavy Industries Dongfang Gas Turbine (Guangzhou) Co., Ltd. constitutes a continuous security of payment and performance of obligations. The guarantor's obligations under the guarantee should not exceed and should be limited to the scope of obligations and liabilities to be assumed by the vendor pursuant to the contract. At the end of the Reporting Period, the aggregate guarantee of the Company amounted to RMB92.5 million, representing 0.29% of the net assets of the Company.
   For details on the above guarantees, please refer to the announcements on financial leasing guarantee issued by the Company on the website of the Shanghai Stock Exchange on 9 January 2016, 28 June 2016 and 26 August 2016, respectively.

(VI) Material Litigation, Arbitration and Matters Commonly Questioned by the Media

During the Period, the Company was not involved in any material litigation, arbitration or matters commonly questioned by the media.

(VII) Employees and Remuneration Policy

As at 30 June 2020, the total number of employees of the Company was 18,256. The total amount of remuneration paid to the employees during the Reporting Period was RMB1,049,500,000.

The Company has formulated management systems including total wages, performance assessment, employee remuneration distribution, medium and long-term incentives, etc., and established an internal remuneration distribution system adapting to market competition based on the position value, and with performance contribution as orientation. Employee remuneration is paid with reference to enterprise economic efficiency and individual performance.

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During the Reporting Period, guided by the development strategy, the Company formulated the annual unified training plan of the Company and the annual training plan of each enterprise, so as to improve the professional ability of employees and boost their career development. The Company implemented hierarchical and classified trainings, and planned that the number of trainings per employee in the year should be not less than 7 times. The Company's unified training plan focuses on improving the management ability of leaders and the professional skills of employees, highlighting the unified training of management talents, core technical talents, excellent skilled talents and backbone young talents; the annual training plan of each enterprise affiliated to the Company highlights the improvement of professional skills and comprehensive abilities of all employees. Through the combination of online and offline trainings, independent trainings and superior trainings, the Company made full use of the Company's "learning cloud" platform, effectively coordinated the training resources inside and outside the Group, promoted the implementation of training plans, and continuously improved the position performance capacity and development potential of talents in various fields and at all levels to promote the mutual development of employees and the Company.

(VIII) Corporate Governance Code

The Company has fully complied with all applicable code provisions of the Corporate Governance Code contained in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited during the Period.

(IX) Model Code for Securities Transactions

The Company has adopted a code of conduct regarding securities transactions by Directors and supervisors of the Company on the required standard set out in the Model Code for Securities Transactions by Directors of Listed Issuers (the "Model Code") contained in Appendix 10 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. Having made specific enquiry to all directors and supervisors of the Company, the Company confirms that as of 30 June 2020, the directors and supervisors of the Company had complied with the provisions regarding the securities transactions by directors and supervisors as set out in the Model Code.

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1. Audit Committee
   The Board has set up an audit committee comprising three independent non- executive directors, Mr. Gu Dake, Mr. Xu Haihe, and Mr. Liu Dengqing. Mr. Xu Haihe, the independent non-executive director, holds the position of the Chairman. The audit committee has reviewed the interim results of the Company for the Period, and agreed with the accounting treatment method adopted by the Company.

(XI) Information Disclosure

The results announcement is published on the websites of Hong Kong Stock Exchange (http://www.hkexnews.hk) and the Company (http://dfem.wsfg.hk). The interim report of the Company for the period ended 30 June 2020, which contains all information as proposed in the Disclosure of Financial Information set out in Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, will be dispatched to shareholders of the Company and published on the websites of Hong Kong Stock Exchange and the Company's website in due course.

This announcement is prepared in both Chinese and English by the Company. In case of any inconsistency between the Chinese version and the English version, the Chinese version shall prevail.

By Order of the Board

Dongfang Electric Corporation Limited

Zou Lei

Chairman

Chengdu, Sichuan, the People's Republic of China

27 August 2020

As at the date of this announcement, the directors of the Company are as follows:

Directors: Zou Lei, Yu Peigen, Huang Wei, Xu Peng and Bai Yong

Independent Non-executive Directors: Gu Dake, Xu Haihe and Liu Dengqing

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