Glorious flowers in spring symbolize the harvest in autumn and a year of abundance. The year 2024 marked a crucial period foradvancing the implementation of China's 14th Five-Year Plan, and proved pivotal for SDIC Power as it made substantial progressin deepening reforms while embarking on China's modernization path toward national rejuvenation and building a strongernation.

Throughout the year, we remained steadfast in our mission as a central state-owned enterprise, resolutely serving national energy security and the "dual carbon" strategy. Guided by our brand philosophy of "Brighten Nature, Brighter Power", we united our efforts to anchor our course toward high-quality development. We actively pursued growth, optimized our structure with scientific precision, and implemented targeted risk controls, continuously strengthening our core functions and enhancing our competitive edge. With proactive engagement in the transformation of our times, we achieved renewal and growth through reform, writing a remarkable chapter in SDIC Power's development story.

Throughout the year, we extended our green footprint and comprehensively advanced clean energy development. SDIC Power has unswervingly pursued a high-quality development path that prioritizes ecological conservation, resource efficiency, and green low-carbon transformation, accelerating our comprehensive transformation toward sustainability. We implemented the "Standardization Advancement Year" initiative for ecological and environmental protection, systematically elevating the standards of ecological environmental protection management. We vigorously promoted energy conservation, carbon reduction and efficiency enhancement, significantly reducing the energy consumption of coal-fired power units while improving their operational flexibility and regulation capacity. Concurrently, we sustained substantial investments in clean energy development, accelerating the deployment of high-quality renewable projects. With balanced consideration for both hydropower development and ecological protection, we advanced the integrated development of the hydro-wind-solar integration base in the Yalong River Basin. In 2024, SDIC Power achieved a significant milestone with clean energy capacity accounting for over 70% of the total installed capacity. We successfully fulfilled all energy conservation and environmental protection targets, accomplishing "full coverage" of on-site environmental supervision and inspection. Notably, the coal consumption for power supply for coal-fired power units reached 296.71g/kWh.

Throughout the year, we kept national priorities at heart and meticulously built a better future for all. SDIC Power has consistently strengthened its safety management capabilities, supporting stable economic operations through a reliable energy supply and effectively translating high-quality development achievements into better quality of life for the people. SDIC Power has established and improved the work safety responsibility system, carried out system review and problem diagnosis in a downto-earth manner, and focused on promoting the improvement of the safety, health and environmental management system. The Company has maintained strict oversight of critical operational processes, including cascade hydropower dispatch and coal supply logistics, ensuring full-capacity generation from all power units. Beyond operations, SDIC Power has actively fulfilled its social responsibilities through industrial support, consumption assistance and capacity-building partnerships. These efforts empower local communities, strengthen grassroots development, and advance rural vitalization in alignment with national strategies. In 2024, the Company allocated RMB 61.40 million in rural vitalization assistance funds and contributed a total of RMB 6.0979 million in public welfare donations. Our efforts in work safety and energy supply assurance were commended multiple times by government authorities.

Throughout the year, we optimized corporate governance and delivered high-quality market value. SDIC Power has upheld highstandard corporate governance as its core principle, enhancing compliance management, standardizing operations as a listed company, safeguarding shareholder rights, and advancing sustainable development. The Company adhered to a majority of nonexecutive directors on its Board of Directors, ensuring well-established governance procedures, standardized processes, and a balanced membership structure. We have continuously improved our scientific risk management framework and internal control mechanisms while refining our compliance management system to develop an ESG management system with corporate characteristics. Furthermore, we have built a multi-tiered, comprehensive value delivery system, maintaining a consistent and stable dividend policy to effectively enhance investor returns. In 2024, the Company raised the dividend payout ratio commitment by 5 percentage points to 55%, its average daily total market capitalization surpassed RMB 100 billion for the first time, and received a grade A in information disclosure from the Shanghai Stock Exchange for the eighth consecutive year. The Company successfully introduced the National Council for Social Security Fund as a strategic investor, injecting new momentum into the development of the core business operations.

Throughout the year, we implemented lean management practices and deepened our commitment to quality improvement and efficiency enhancement initiatives. SDIC Power has advanced the development of its lean management system, fully leveraging the supporting role of human resources and the driving force of technological innovation to enhance its core functions and competitive edge continuously. We have enhanced its operational management capabilities by conducting industry benchmark cost comparisons and strengthening scientific and refined financial management. We have continuously optimized human resource management by accelerating talent acquisition, expanding professional development channels, and building robust career platforms for employees. Furthermore, we have reinforced the organization and implementation of technological projects, encouraging business units to play a leading role in innovation. The Yalong River Hydropower project, "Key Technologies and Applications for Intelligent Construction of High Dam Engineering under Complex Conditions", was awarded the Second Prize of the National Science and Technology Progress Award. In 2024, the Company's total assets reached RMB 296.537 billion at the end of the year, with an operating revenue of RMB 57.819 billion and a total profit of RMB 15.706 billion.

With great ambitions, we will embark on a new journey and forge ahead with determination to compose a glorious chapter. In 2025, SDIC Power will uphold its profound sense of social responsibility and mission. Driven by innovation and committed to excellence, we will combine pragmatic action with bold leadership to fortify national energy security, deliver outstanding results in building a modern energy system, and advance resolutely toward our goal to become a globally-trusted investor & operator in integrated energy.

Chairman of SDIC Power Guo Xuyuan