(Concise Edition)en.cgnpc.com.cn/encgn/re2018/201807/e1e3224b265a4bb59da7...safety as a concrete manifesto of "political awareness". We will keep in mind General Secretary Xi Jinping's

China General Nuclear

Power Corporation

2017 Corporate Social

Responsibility Report(Concise Edition)

Questions and answers with the Chairman02

About CGN04

Responsibility performance34

Responsibility demonstrated by practices

Nuclear power exporting, "Created in Chinagoes" global

Husab Uranium Mine, a modern plant in barren desert

Responsibility enshrined in management culture

06 10

Nuclear safety is the bedrock of CGN

Going steadily on the road to reform

Building a beautiful China, natural energy powering

nature

10

16

22

Talent development

Transparent public communication

26

30

06

08

About the Report ContentsIntroduction

The time period covered by this report is from January 1, 2017 to December 31, 2017; some of its contents have been extended. The report content covers China General Nuclear Power Corporation and its affiliated branches and subsidiaries. All information and data released in the report are sourced from official CGN documents, and others officially published by external organizations. China General Nuclear Power Corporation confirms that the information disclosed in the report is true and reliable without misinterpretation, misleading statements or major omissions.

"China General Nuclear Power Corporation 2017 Corporate Social Responsibility Report" is the 7th corporate social responsibility report since 2012 published by China General Nuclear Power Corporation (China General Nuclear Power Corporation is also referred to as "China General Nuclear Power Group", "CGN", "Group", "Company" or "We" in this report). This report discloses in detail the practices and achievements of China General Nuclear Power Corporation in the fields of economic activity, the environment and society in 2017.

This report (Concise Edition) is available in English.Please visit www.cgnpc.com.cn to download the PDF version of the report.

How to Obtain the Report

Scope of the Report

Compilation ConformanceSASAC "The Guidance for the Central Enterprises to Disclose Their Social Responsibilities Information" (GZFYJ [2008] No.1) International 0rganization for Standardization "ISO26000: Guidance on Social Responsibility (2010)"Global Reporting Initiative "Sustainability Reporting Guidelines (G4)"National Standard "Guideline on Social Responsibility Reporting Preparation" (GB/T 36001-2015)Chinese Academy of Social Sciences "Guideline on Social Responsibility Reporting Preparation of Chinese Corporation" CASS-CSR3.0

Daya Bay Nuclear Power Plant Clover Onshore Wind Power Project in the UK

Questions and answers with the Chairman

He Yu, Secretary of the leading Party group and Chairman of CGN

Q The 19th National Congress of the Communist Party of China proposed a strategic plan to speed up reform of the system for developing an ecological civilization, promote green development, and build a beautiful China. What measures will CGN take as a clean energy company?

Q 2017 is CGN's "Year of Nuclear Power Safety Management Improvement". What has CGN achieved in nuclear power safety?

Q In 2017, CGN actively implemented the "Belt and Road Initiative" and made great achievements in "going global". Where does the confidence come from and what advantages does CGN have in "going global"?

A We positioned 2017 as the "Year of Nuclear Power Safety Management Improvement" of CGN. To this end, we specifically formulated programs to improve nuclear power safety management, carried out special projects to enhance our safety management, and effectively improved safety management capability. At the same time, we also formulated special action implementation plans, organized self-examination and self-correction reports, and effectively implemented rectifications subject to joint supervision and inspection by the National Development and Reform Commission, the National Energy Administration, the Ministry of Environmental Protection, and the State Administration for Science, Technology and Industry for National Defense.

A In 2017, CGN actively participated in the "Belt and Road Initiative" and made outstanding achievements in overseas business, setting "eight records" among domestic peers in going global -- the largest investment projects in the UK and Europe (UK's nuclear power projects), and in Africa (Husab Uranium Project), the largest foreign direct investor in Malaysia, the largest Chinese company to invest in Ireland, the largest independent power producer in Bangladesh and Egypt, and the largest onshore wind farm in Belgium. At present, CGN has international business covering more than 20 countries and its overseas operating revenue accounts for more than 20% of the total, making the company a pioneer among central enterprises in the "Belt and Road Initiative"

After one year's effort, CGN's safety performance has been greatly improved. The overall performance of nuclear power safety of CGN's units is better than that of France, and is in line with that of the US. Indications are that CGN units top their global peers, and the company has also maintained zero negative scores in the assessment conducted by the State-owned Assets Supervision and Administration Commission of the State Council. In 2017, 72% of CGN's results in the World Association of Nuclear Operators (WANO) indicators for mature units reached the world's top decile (excellent level), and 72% of its results for new units in the WANO indicators were in the world's top quartile (advanced level).

CGN's going global reflects three stages of a development strategy: learning, cooperation and creating. In any case, the corporation follows the principle of achieving shared growth through discussion and collaboration. CGN is not only responsible for financial investment, but also helps export China's technology, China's equipment, China's construction and China's experience to eventually achieve multi-win results. That's where our confidence comes from.

According to the Institute of Nuclear Power Operations (INPO) index, the safety performance indicators of six CGN's units out of 16 commercial units [note: according to the statistical rules, four units are not included into the statistics due to time restrictions on commercial operations] were tied for No. 1 when compared to 98 US commercial units. At the end of 2017, CGN has gained 36 first prizes at the annual NPP safety competition held by French nuclear giant Electricite de France (EDF). Unit 1 of Ling Ao Nuclear Power Plant has safely operated for 4,279 days with zero unplanned shutdown days, topping its global counterparts.

CGN has obvious advantages. First, based on the competitive edges, industrial chain integrating capacity, assets, government support and rich experiences China's nuclear power industry has accumulated over the past 30 years, CGN is capable of offering tailored energy solutions for target markets in terms of nuclear power plant construction and operation, and nuclear power construction and management.Second, China's third-generation nuclear power technology "Hualong One (HPR1000)" with independent intellectual property rights is at international advanced levels in technical safety, and its economic performance is better than that of its international counterparts. It also has a comparative advantage in the industrial chain. Third, CGN has formed a unique nuclear safety culture. We always adhere to the basic principle of "safety first, quality first, and pursuing excellence", and practice the core value of "doing things right in one go", while our solid "cultural confidence" serves as the backbone to promote sustainable development.

Facing the new challenges in the new era, we will translate the spirit of the 19th CPC National Congress into a powerful driving force for deepening reforms and promoting development. We will implement new development concepts, constantly explore, innovate and upgrade, strengthen top-level design, and adhere to the direction of market-oriented reforms. We will strive to eliminate the outstanding problems in institutional mechanisms that have hindered the development of CGN, and demonstrate the new look and new achievement of CGN in the new era.

A The report of the 19th CPC National Congress reviewed the great achievements made by the people of all ethnic groups in China led by the Party Central Committee with Comrade Xi Jinping as the core in the past five years. It pointed out the direction for the development of the next five years or even three decades, which is invigorating and encouraging. CGN is a central enterprise dedicated to the development of clean energy, and is closely related to many important issues such as innovation-driven development, green development, beautiful China, structural reform of energy supply side, targeted poverty alleviation, and the "Belt and Road Initiative" mentioned in the report of the 19th CPC National Congress.

We have formulated a medium-to-long-term development plan for CGN after in-depth thinking and systematic planning based on the grand blueprint of the "two-stage development plan (2020-2050)" proposed by the 19th CPC National Congress, and made it clear that we will create two more "CGNs" by 2020. We also offer development outlooks for 2025 and 2030. We will closely follow the new era and earnestly implement the new ideas, new concepts, and new strategies in the Report.

The first and foremost is to insist on the principle of nuclear safety first. "Without nuclear safety, there would be no CGN." We will regard safeguarding nuclear safety as a concrete manifesto of "political awareness". We will keep in mind General Secretary Xi Jinping's trust, adhere to the core value of "doing things right in one go", insist on the basic principles of "safety first, quality foremost and pursuing excellence" and promote the level of nuclear safety management.Second, we will stick to innovation-driven development. As innovation is the "foundation and base" of CGN, we will adhere to the path of innovation-driven development, keep an eye on international advanced technology, and place innovation in a more important position. Third, we will adhere to international development, take an active role in promoting the "Belt and Road Initiative", develop a number of support and flagship projects and promote nuclear power and clean energy to go global. The fourth is to insist on comprehensively deepening reforms. We must resolutely get rid of all outdated thinking and ideas and all institutional ailments, and break through the blockades of vested interests. The fifth is to uphold and strengthen Party leadership. The leadership of the Communist Party of China is the root and soul of the State-owned enterprises, never wavering at any time. We will continue to uphold and strengthen the Party's leadership in a straightforward manner and give play to the unique advantages of CGN's being a central enterprise.

Q Q: As 2018 marks the 40th anniversary of Reform and Opening-up, what measures will CGN take in its reform and innovation?

A The central enterprise of CGN has been growing up along with the policy of the Reform and Opening-up and has achieved remarkable progress and leap-frogged development over the past more than 30 years. Starting from the Daya Bay Nuclear Power Plant (NPP), CGN has forged ahead, conquered tricky difficulties and explored a series of practical experiences in innovation and development. CGN plays a leading role in safely operating NPPs, developing new energy and facing market-oriented operational challenges. The example of the Husab Uranium Mine project shows how CGN has led China's nuclear power industry chain in going global and promoted international cooperation, joint construction, and win-win cooperation. CGN has rich experience in mixed ownership reforms, cutting-edge nuclear technologies, public transparent communication and targeted poverty alleviation. "CGN Experience" condenses the wisdom and hard work of CGN's people and will advance the sustainable and sound development of the corporation in the future.

Socialism with Chinese characteristics entering a new era places CGN at a new historical starting point for development. The people of CGN will stay true to our founding mission and work hard together to maintain CGN as a globally competitive clean energy enterprise. We will make due contributions to the realization of the Chinese dream and the great rejuvenation of the Chinese nation.

02 China General Nuclear Power Corporation 03 2017 Corporate Social Responsibility Report

05 2017 Corporate Social Responsibility Report04 China General Nuclear Power Corporation

About CGN

Q Q: CGN has always explored better communication with the public. Can you introduce some innovative measures CGN has adopted to promote transparent communication?

CGN views "transparency" as an important prerequisite and responsibility for achieving effective communication and winning trust. CGN continuously explores more open and transparent public communication mechanisms and has established a platform for public communication. The subordinate nuclear power plants of CGN have also established a normalized pattern of opening up to the public.In 2017, we continued to increase press releases and organized 18 press conferences, winning the favor of mainstream media in China. CCTV reported to the public 38 times in 2017, 10 of which involved "Xinwen Lianbo" (CCTV's flagship news program at 7 pm), a record high. We continued to increase communication with key populations, and participated in 15 large-scale domestic and overseas exhibitions. More than 600,000 people have visited nuclear power bases of CGN. In the 2017 Astana EXPO, CGN attracted more than 10 heads of government and hundreds of thousands of international tourists.

CGN continues to expand the brand influence of the "Public Open Day" and innovatively launched the "Most beautiful wedding photos taken at an NPP" activity, which attracts the attention of 9 million people and helped create a new brand for public communication and nuclear power science popularization in the nuclear energy industry. We changed the impression of nuclear power among the public from being mysterious to being warm and beautiful, a most vivid science popularization of nuclear power throughout the country. In the future, CGN will continue to explore innovative public communication and build CGN's social responsibility brand of transparent communication.

Mission:Developing clean energy to benefit mankind

Vision:To build a world-class clean energy corporation

Core value:Doing things right in one go

Brand slogan:Natural energy powering nature

Our culture

Basic principle

Doing things right in one go

Safety

first

Quality

foremost

Pursuing

excellence

enterprising

Valu

e cr

eatio

nCustomer-oriented

Be innovative and

Rigorous and practical

Acc

ounta

bility

"Without nuclear safety, there would be no CGN." "Doing things right in one go" is our core value, which we regard as the working attitude and job objective that we always adhere to; we involve it in every step of R&D, production, operations and management to ensure safe production and operations, improve quality, and promote sustainable development.

CGN is a super-large scale State-owned enterprise group consisting of the core enterprise China General Nuclear Power Corporation and 45 major subsidiaries. It was formally incorporated in September 1994. Taking "developing clean energy to benefit mankind" as its mission, CGN builds and simultaneously operates made good progress in nuclear technology, finance, public utilities, and energy conservation technology and other fields. In 2017, CGN maintained the largest nuclear power company in China and the third largest in the world, as well as the world's largest nuclear power builder. CGN has the largest installed capacity of overseas gas-powered projects among its Chinese counterparts. CGN is a key profit-making and profit-raising enterprise under the State-owned Assets Supervision and Administration Commission of the State Council, with its comprehensive performance ranking top among central enterprises.

Up: Yunnan Menghai Wind FarmDown: Tea garden at Fujian Ningde Nuclear Power Plant

CGN Building


The construction of the main project of Hinkley Point C (HPC) invested by CGN commenced on March 24, 2017 in the United Kingdom.

Nuclear power exporting, "Created in China" goes global

GDA review highlights strength

CGN, EDF and the British government signed a package of agreements for the construction of new nuclear power projects in the UK on September 29, 2016, a historical breakthrough in China's nuclear power going global. According to the agreement, CGN will cooperate with EDF to build three nuclear power projects including the HPC, Sizewell C(SZC)and Bradwell B (BRB). The Chinese side of the HPC project accounts for 33.5%, and two units using the European advanced pressurized water reactor technology EPR will be built. The follow-up BRB project, led by CGN and participated by EDF, will use China's homegrown third-generation nuclear power technology, HPR1000, modeled on Unit 3 of the Fangchenggang NPP in the Guangxi Zhuang autonomous region.

"It’s China's largest investment project in the UK and in Europe," said Chinese ambassador to Britain Liu Xiaoming in an interview. CGN took home an award for Chinese investment in the UK at a Chinese New Year Dinner held by the 48 Group Club on January 23, 2017. "Chinese investment is creating new jobs, generating green, low carbon growth and bringing economic prosperity and stability," said Liu Xiaoming in a signed article published in the London Evening Standard. Liu said that "The Hinkley Point C project, partly financed by the Chinese company CGN, for example, is expected to create 26,000 jobs and, upon completion, reduce carbon dioxide emissions by nine million tons every year."

Chinese nuclear technologies begin exporting

"As the sixth applicant, we are confident that HPR1000 will pass the GDA assessment in about five years and push China's homegrown third-generation nuclear power technology and Chinese manufacturing capacities to the UK and the world," Mao said with optimism.

The British authorities issued a joint statement on the morning of November 16, 2017, local time, announcing that the first phase of the GDA review was completed and at that point the second phase officially began. The second phase of the assessment is estimated to take about 12 months.

From being a follower CGN has grown into a pacemaker, and experienced the shift from being an importer to developing and exporting its own nuclear technologies.Relying on China’s domestically-developed HPR1000, CGN will further increase its efforts to"go global"and let the" national calling card"of nuclear power be well known in the world.

The Bradwell B (BRB) project is the first overseas NPP to use China's homegrown third-generation nuclear power technology "Hualong One (HPR1000)". It is expected to pave the way for the international development of China's nuclear industry. However, the prerequisite for HPR1000’s entering the UK is passing a UK Generic Design Assessment (GDA) review, which features a long assessment cycle, a high level of difficulty and large investment.

"It is the first time that China's homegrown nuclear power technology is being tested by overseas markets, in particular, a developed market with the world's advanced nuclear power technologies," Mao Qing, chief technical officer at CGN responsible for the HPR1000 GDA, pointed out. "It is a good opportunity for China to demonstrate its own nuclear power technology capabilities to the world."

General Nuclear System Limited (GNS) —— a joint venture between CGN and EDF —— was established to undertake the GDA process. In January 2017, CGN officially applied for HPR1000 assessment and after 10 months of preparation, the preliminary safety report completed by GNS for the second phase of the assessment was approved by the UK Office for Nuclear Regulation and the UK Environment Agency.



In 2012, CGN started to construct the Swakop Uranium (Namibia Husab mine). On December 31, 2016, the first barrel of natural uranium was successfully produced, and in 2017 the mine registered a cumulative output of 1,345 tons. CGN created a "miracle" within just five years in the vast desert, a win-win cooperation between the two countries.

It is beyond imagination that five years ago, it was a wilderness, still untouched by the vigorous construction procedures of the Husab plant. CGN invested in building a 22 kilometer tarmac road in Namibia with the highest grade, paving a 65 kilometer water pipeline, and upgrading the power facilities along its length. Thanks to that improved infrastructure, the factory was built smoothly and great improvements were achieved in traffic conditions and supply of water and electricity to local residents.

Factory in desert

The local talents in Namibia are important to the development of the Husab Uranium Mine. The proportion of local employees in 2017 reached 95%. In order to further enhance employment, CGN has invested nearly 200 million Namibian dollars into systematic training for contract workers, maintenance workers, and operators.

In addition, CGN has developed a hotel-style camping ground for local employees, which is divided into office, residential, dining, and leisure areas. The accommodation for employees is well-equipped with facilities including air-conditioning and showers, allowing employees to live and work comfortably in a harsh environment.

Personnel training

Any money left over from the marathon funds is donated to local primary schools, helping improve sports facilities and support the development of sports and culture in Namibia.

CGN has also established the Swakop Fund to develop local small and medium-sized enterprises and educational and community resources.

CGN has actively integrated itself into the local communities in Namibia to promote environmental, social and cultural development. CGN was committed to minimizing the impact on the environment during the entire construction process. In the early stage of project construction, CGN worked with local botanists to optimize the project design in order to protect welwitschia mirabilis, a rare plant in Namibia. Only three plants have had to be transplanted instead of an anticipated 200, thanks to CGN's efforts.

In an effort to enrich local cultural life, CGN has hosted marathons for several years with the number of participants growing to nearly 800. The annual event takes place in August, attracting people from various countries including China, Namibia, Zambia and South Africa. It has become one of the most influential sports events on the continent.

On August 27, 2017, Zhang Gaoli, then a member of the Standing Committee of the Political Bureau of the Communist Party of China and vice premier of China, visited Husab Uranium Mine and said that CGN is a "reliable" enterprise in term of implementing the going global strategy. He made the remark after being told that huge changes have taken place in Namibia and a group of Chinese enterprises have expanded overseas business as a direct result of the CGN Husab project.

It took CGN only four years to bring diverse vitality to the desert area. The Husab project guarantees stable fuel for China's nuclear power units, and also provides Namibia with a new driving force for development, benefiting local communities and residents and setting a vivid example for Chinese companies to fulfill their overseas responsibilities. It sets up a new win-win cooperation pattern for Chinese enterprises when taking part in the "Belt and Road Initiative" in the new era.

Community contribution

Husab Uranium Mine is China's largest investment project in Africa. According to statistics from the Chinese Embassy in Namibia, Chinese companies have invested about $3 billion in Namibia, 73% of which is accounted for by the CGN's Husab Uranium Mine. Upon reaching its targeted capacity, the project is expected to contribute tax of up to 1.7 billion Namibian dollars to local government annually, making Namibia the second largest natural uranium production and export country in the world. It means a 20% increase in export volume, a 5% increase in GDP and thousands of jobs for Namibian people.

Two Namibian presidents have visited the Husab project, each claiming that it is a "flagship project" in the country. On February 23, 2017, after learning that the Husab Uranium project had successfully produced the first barrel of qualified natural uranium, Namibian President Hage Geingob sent a congratulatory letter exclusively through the Chinese Ministry of Foreign Affairs. Geingob said in the letter that as Namibia records an annual economic aggregate of less than $10 billion, and the Husab project's huge investment has made a remarkable contribution to Namibian employment, taxation, and skills, "Namibia welcomes such an investor."

The flagship project

Husab Uranium Mine, a modern plant in barren desert

08 China General Nuclear Power Corporation 09 2017 Corporate Social Responsibility Report


Ensuring nuclear safety SDGs

Our ActionsContinue to carry out "Leaders are on site" activityImprove nuclear power safety management Strengthen engineering construction quality controlPromote the standardization of operations in an all-round wayImprove independent innovation capability

Safety performance

Accident rate for every 200,000 working hours

reached 0.01 0 events INES level-2 and above events

reach the world’s top decile (excellence level)

of WANO indicators of mature units72 %

Fujian Ningde Nuclear Power Plant


Nuclear Power Safety Management Engineering Construction

2017 marks the "Year of Improving Nuclear Power Safety Management" for CGN. To this end, we set a task force and formulated a plan subdivided into 153 items in 18 categories. We also organized self-examination and self-correction activities among the subsidiaries, and responded actively to the joint supervision and inspection of the National Development and Reform Commission, the National Energy Administration, the Ministry of Environmental Protection, and the State Administration for Science, Technology and Industry for National Defense.

%

—— The World Association of Nuclear Operators (WANO)

"CGN has made great progress in nuclear safety management, and its experience is worth learning for WANO."

—— The statement represents the conclusion of the joint supervision and inspection team of the National Development and Reform Commission, the National Energy Administration, the Ministry of Environmental Protection, and the State Administration for Science, Technology and Industry for National Defense.

"The nuclear energy safety management system of CGN is sound and effective, and safety production is under control. There is no major hidden danger affecting the safety of the industry. The safety of nuclear power is fully guaranteed."

Achievement

0 deaths

0 serious injuries

Guangdong Yangjiang Nuclear Power Plant

A total of 66 energy projects covering nuclear power, wind power and solar energy were under construction in 2017.

Quality Project

Hoisting of the steel-lined cylinder of the reactor building was completed at Fangchenggang NPP Unit 3 on December 31, 2017 — a demonstration project of CGN's UK Project using HPR1000 technology.

The nine-layer cylinder is 45 meters in diameter and 45.45 meters in height, and weighs 447 tons. Started on March 12, 2017, the hoisting project was finished in 294 days.

Wind power34 projects under construction

Solar energy23 projects under construction

Nuclear power8 projects under construction in China1 project under construction in the UK's HPC

Nuclear power construction accident rate for every 200,000 working hours reached

0.01

In the overall rating of international safety, quality and management for engineering construction,CGN projects reach

Nuclear projects at Hongyanhe NPP reach

7level

8level

Note: The rating system

has ten levels to evaluate a

comprehensive improvement

in the quality and quantity

of performance, field

construction and management

standardization. Levels 7

and 8 are advanced.

HSE incidents

Note: HSE refers to Health, Safety, and Environment management syste

8.3decreased by


Safe OperationCGN's 20 nuclear power units recorded safe and stable operations in 2017. 72% of WANO indicators of CGN mature units reached the world's top decile (the excellent level), while 72% of WANO indicators of new units reached the world's top quartile (the advanced level).

Independent Innovation

Technological Innovation Platforms

National Energy Nuclear-grade Equipment Research and Development Center

National Energy NPP R&D Center for NPP Digital I&C Systems

National Energy Advanced Nuclear Fuel Elements R&D (Experiment) Center

National Nuclear Power Operation and Life Management Technology R&D Center

National Energy Nuclear Power Engineering & Construction Technology R&D (Experiment) Center

National Energy Concentrating Solar Power Technology R&D Center

National Energy Ocean Nuclear Power Platform R&D Center

Nuclear Power Plant Safety and Reliability Research Center

First national engineering technology research center on nuclear industry in China

China's Energy Research and Development Center

Nuclear Power Safety Monitoring Technology and Equipment Lab

First national key lab on nuclear industry in China

Research Achievements

patent applications patents granted software registrations

1,033 157627

second prize National S&T Progress Award

provincial and ministerial science and technology awards

China Patent Awards of Excellence

1 406

The British government started the GDA process on China-developed third-generation HPR1000 nuclear technology in January 2017. The first phase was completed on November 16, 2017 and now the second phase is underway.

CGN delivered the completed Yangjiang project, a high-temperature gas-cooled reactor project and saw acceptance of a transformation project in Algeria. CGN signed a contract to supply nuclear equipment to four units in South Korea with Doosan, a further step into the South Korean market.

FirmSys

Various models of STEP-S (8 feet), STEP-12 (12 feet), and STEP-14 (14 feet) have been independently developed by CGN as the "China Core" of nuclear power plants.

STEP-series fuel assemblies

Remote-controlled environmental monitoring robots, emergency rescue detection and multi-functional operation robots fill domestic gaps and improve the level of nuclear security intelligence.

Robots

The China-first plasma-based hazardous waste treatment demonstration project in Qingyuan, South China's Guangdong province, which has a designated processing capacity of 100,000 metric tons of waste per day, passed acceptance and review by experts.

Plasma-based

hazardous waste

treatment

The electron beam treatment industrial wastewater technology jointly developed by CGN and Tsinghua University passed the identification of scientific and technological achievements. The demonstration project is in operation in Jinhua, Zhejiang province. It marks a historic breakthrough in China's industrial wastewater advanced treatment and is a technological leap in the field of industrial wastewater treatment in China and the rest of the world.

Electron beam industrial

wastewater treatment technology

HPR1000

CGN's subsidiary, Daya Bay Nuclear Power Operations and Management Company (DNMC), came first in two areas -- Capability Factor and Nuclear Safety/Automatic Scram -- in the annual nuclear power plant (NPP) safety competition held by French nuclear giant Electricite de France (EDF) in Paris on March 29, 2017. DNMC held a top place among similar nuclear power operators with 36 first prizes in total in this global competition.

CGN wins two first places in safety performance challenge competitionCase

consecutive days

According to the INPO index, indicators of 6 (Unit 2 of Daya Bay NPP, Unit 2 of Hongyanhe NPP, Units 1 and 2 of Ling Ao NPP, and Unit 3 of Ningde NPP) out of 16 commercial units were tied for first place when competing against 98 US commercial units.

Note: Four units are not included in the statistics, due to the time restrictions on commercial operation.

4,279

Unit 1 of Ling Ao Nuclear Power Plant Phase I achieved safe operations for

without unplanned shutdown as of December 31, 2017.Ranking first among 64 units of the same type in the world.

The total funding for science and technology activities in 2017 reached

billion yuan3.39The research and development investment amounts to

billion yuan1.75


Going steadily on the road to reform

SDGs

Business performanceAnnual operating income totals

85 billion yuan

Total in-service installed capacity reaches

45.11 GW

On-grid electricity of clean energy reaches

211.9 TWh

Our actionsDeveloping diverse industries

Actively exploring overseas markets

Driving nuclear power industry chain

"going global"

Carrying out lean management


Diversified development

Nuclear fuel

The daily production capacity of Husab Uranium Mine steadily increased to 230 tons and its annual production reached 1,345 tons. At the same time, CGN has deepened cooperation with Kazakhstan, Australia and other countries on the development of uranium resources and processing of nuclear fuel assemblies, and promoted development of the nuclear fuel industry chain in an all-round way.

Nuclear power

In 2017, CGN had 20 nuclear power generating units in operation with an installed capacity of 21.47 GW, 8 units were under construction in China with the installed capacity of 10.27 GW, and 1 overseas unit was under construction, maintaining CGN's status as China's largest and the world's third largest operator and the world's largest nuclear power builder.

Nuclear Power Plant/Unit Progress

Unit 5 of Yangjiang NPP

Unit 6 of Yangjiang NPP

Unit 1 of Taishan NPP

Unit 2 of Taishan NPP

Unit 5, 6 of Hongyanhe NPP

Unit 3, 4 of Fangchenggang NPP

HPC project in the UK

System commissioning

Equipment installation

System commissioning

Equipment installation

Civil construction

Civil construction

Construction of main project

New energy

In 2017, CGN's new energy sector completed the integration of its wind power and solar energy business, forming a scientific layout of clean energy business including wind power, solar energy and biomass energy, as well as emerging industries such as regional comprehensive energy supply.

CGN Europe Energy, based on the European "New Energy Circle", promotes investment and acquisition, development, construction, operation and maintenance of European renewable energy projects such as onshore and offshore wind power projects. Currently, CGN Europe Energy is expanding in the UK, France, Belgium, and Ireland. CGN has grown to be the sixth largest new energy operator in France.

Energy saving and environmental protection services

CGN Energy Service is dedicated to building a clean energy company committed to comprehensive utilization of natural gas with its own characteristics and differentiated competitive advantages. It has become the largest natural gas distributor in South China and the third largest in the country. It is responsible for the largest electrical heat storage heating project in China and the single largest biogas project in Asia.

7 countriesincluding the US, India,and Thailand

Exporting to

19sets of accelerators

Exporting

Nuclear technology

CGN Nuclear Technology Application Co.,Ltd. completed major asset restructuring and delivery with Dalian International on February 27, 2017. Renamed CGN Nuclear Technology Development (CGNNT, 000881.SZ), it is the country's first non-power nuclear technology application company listed on the A-share market, as well as CGN's first A-share listed company.

Financial services

CGN Capital Holdings Co.,Ltd. is in charge of CGN's financial sector. It has eight member companies and supplies financial services such as fund settlement, debt risk management, credit financing, investment banking, insurance brokering, financial leasing, direct investment, and centralized management of domestic and overseas funds in the Chinese mainland, Hong Kong, Macao and Taiwan.

CGN Service focuses on the development of water supply and water environment treatment, solid waste treatment and disposal, and environmental management of industrial parks. The company set up the first governance laboratory in this field and has engaged in several projects to help improve local environments in Hebei, Yunnan, Sichuan and other regions.

CGN successfully issued 5-year, 7-year and 10-year overseas senior unsecured bonds in US dollars and euros, and successfully raised funds of 900 million dollars and 500 million euros on December 5, 2017. It was CGN's largest ever issuance of overseas bonds and marks the first ever listing of green bonds in euro currency. The issuance also involved the largest participation rate of international investors to date in the company's bond history.

CGN successfully issues euro-denominated overseas green bonds and USD-denominated senior unsecured bonds with multiple tenors

Case

137.7 TWh

On-grid electricity of nuclear power reaches

23.64 GW

Installed capacity from new energies, including wind power and photovoltaic power reaches

CGN Power Co Ltd was granted the "Best Investment Value Award for Listed Companies" of the 2017 China Securities Golden Bauhinia Awards.

CGN Chairman He Yu is granted the "2017 China Securities Golden Bauhinia Awards: Capital Market Special Contribution Award of the 20th Anniversary of Hong Kong's Return to China"

CGN Europe Energy has an installed capacity of

773 MW

Esperance Onshore Wind Power Project in Belgium


01 08

02 07

03 06

04 05

CGN makes

"eight records" in Chinese enterprises

going globalThe largest entity investment project in Africa — Husab Uranium Mine

China's largest investmentproject in the UK — UK Nuclear Power Projects

The largest foreign direct investor in Malaysia

The largest onshore wind farm in Belgium

The largest independent

power producer in Egypt

The largest independent

power producer in

Bangladesh

The largest investment in

Ireland from Chinese

enterprises

China's largest investment project in Europe — UK Nuclear Power Projects

International cooperation

International exchange

CGN signed memorandum of understanding with British Ultra Electronics

The two sides will strengthen cooperation in the fields of instrument, sensors, detectors, and radiation monitoring, and further enhance cooperation in global nuclear power projects.

The two sides plan to give full play to respective advantages in nuclear energy R&D and cooperate in fields of accident-tolerant fuels and radioactive waste treatment, and explore a feasible path for CGN to allocate R&D resources on a global scale.

CGN and the Kenya Nuclear Electricity Bureau (KNEB) signed the "Cooperation Framework Agreement on Nuclear Electricity Training between CGN and KNEB" and reached consensus on personnel training and other issues to boost the development of nuclear electricity in Kenya.

CGN and University of Manchester set up a joint research and development center

CGN signed a cooperation agreement on talent training with the Kenya Nuclear Electricity Bureau (KNEB)

In 2017, CGN cooperated with more than 20 countries with overseas revenue accounting for more than

of its total revenue %20

Mar.

May

Jan.

Jun.

Jul.

Sep.

Nov.

Dec.

CGN, as the only invited nuclear power enterprise, participated in the 2nd Asian Sustainable Energy and Technology ExhibitionCGN attended the Boao Forum for Asia (BFA) annual conference 2017

He Yu attended the 2nd World Nuclear Energy Development Forum and delivered a keynote speech

He Yu attended the BRICS Summit

CGN takes part in the 2017 China-EU Blue Industry Cooperation Forum

He Yu attended the Davos Forum in Switzerland

He Yu attended the Belt and Road Forum for International Cooperation

CGN New Energy participated in the 3rd East Asia Summit Clean Energy Forum

He Yu attended the 2017 Asia-Pacific Economic Cooperation (APEC) meetings and forums in Vietnam

Cargo Wharf at Hongyanhe Nuclear Power Plant in Liaoning province

Overseas expansion


Building a beautiful China, making good use of natural energy

SDGs

Our actionsPromote development of clean energy

Develop energy-saving services and

technologies to prevent water pollution

Constantly monitor the environment

Protect biological diversity

Contributions to Environmental ProtectionElectricity generated from clean energy

was equivalent to a reduction of

of standard coal

66.13 million tons

of polluting the environment

0 incidents

A reduction of greenhouse gas emissions by

million tons160

Xilin Gol Wind Farm in the Inner Mongolia autonomous region


In 2017, CGN's on-grid electricity of clean energy reached 211.9 TWh, an increase of 20% year-on-year. This is equivalent to a reduction of 66.13 million tons of standard coal, a reduction of carbon dioxide emissions of 160 million tons or afforestation of 480,000 hectares.

CGN is awarded "2017 International Clean Energy Company of the Year" at the 6th International Forum on Clean Energy held in Macao

CGN Energy Service's biogas project in Hengshui, Hebei province produced qualified compressed natural gas and bio-organic fertilizer and was officially put into trial operation on December 29, 2017. The Hengshui project is Asia's single largest biogas project, featuring global advanced and proven technologies and equipment, and has filled a number of gaps in the domestic industry.

Hengshui biogas project enters trial operationCase

The concepts of green, ecological, and environmental protection have always been integrated into the entire process of site selection, demonstration, construction, and operation and maintenance of CGN's projects. We have attached great importance to local environmental protection and culture when developing and constructing every wind farm, and are dedicated to building a number of wind power plants with local characteristics based on natural landscape and folk customs to achieve harmonious integration of new energy construction with the environment, ecology and tourism.

Sample of ecological civilization of CGN wind farmCase

Develop clean energy

site selection construct recoverdesign

On-grid electricity of clean energy reaches 211.9 TWh

35%

65%On-grid electricity of nuclear power reaches 137.7 TWh

Wind power, photovoltaic power generation and other new energy sources reach 74.2 TWh

Reduction of nitrogen oxides by about 320 kilotons

Reduction of standard coal by about 66.13 million tons

On-grid electricity of clean energy equivalent

to

160 million tons

Reduction of carbon dioxide emissions by about

Reduction of sulfur dioxide emissions by about 320 kilotons

25 2017 Corporate Social Responsibility ReportChina General Nuclear Power Corporation

Anxi Longmen Wind Farm in Fujian provinc

Talent development

SDGs

Staff DevelopmentTotal number of staff

41,040Annual training hours per staff member

103 hours

Recreational and sports activities

518 times

Our actionsEnsure employees' basic rights and benefits

Promote occupational health

Champion staff development and promotion

opportunities

Assist employees in need

Staff members of Yangjiang Nuclear Power Plant and their family members fly hand-painted kites


Total number of staff

41,040

%8.37

Proportion of female staff in mid-level and above management posts

Note: A factor influencing the maximum personal irradiation doses of each plant is annual outage. Compared with that of 2016, the overhaul activities of the Ling Ao NPP and Ling Dong NPP in 2017 were basically the same, and therefore the number did not change much. The reduction of overhauls in the Daya Bay and Yangjiang NPPs resulted in a decrease in the number compared with 2016, while major repairs at Fangchenggang and Hongyanhe NPPs increased, giving rise to the increased doses. The annual maximum personal dose of each NPP is far below the management target value of the power plant, which is also far below the limit (50 mSv/year) specified in national regulations.

28 years old and below : 11,565

29~35 years old : 15,624

36~45 years old : 8,988

46 years old and above : 4,863

Technical secondary schooland below : 7,650

Associate degree : 6,007

Bachelor degree : 21,993

Master’s degree and above : 5,390

Male staff : 34,526

Female staff : 6,514

Age structureEducation levelGender structure

16%84%

15%53%

13%

19%38%

22%12%

28%

Occupational Health

We value staff's occupational health and provide free regular physical examinations, strengthen occupational health protection and disease prevention and achieve a zero occurrence of occupational disease throughout the year.

Maximum personal radiation dose in each nuclear power plant in operation* (Unit: mSv)

Daya Bay NPP

Ling Ao NPP

Ling Dong NPP

Units 1, 2, 3 of Yangjiang NPP

Units 1, 2, 3, 4 of Hongyanhe NPP

Units 1, 2, 3, 4 of Ningde NPP

Units 1, 2 of Fangchenggang

6.756

6.610

7.668

2017

8.277

6.071

6.834

2016

7.14

8.51

5.26

2015

6.91

7.73

4.10

2014

13.35

13.70

5.66

——

1.11

1.27

——

1.02

8.08

6.06

——

6.72

5.62

12.01

——

13.078V

5.404

7.537

0.432

7.889

7.803

8.624

8.034

2013Nuclear/Power

Employee compositionStaff Training

New staff training

We provide a series of theoretical and practical training courses for new employees, and help them quickly integrate into the company and their posts.

We have formally implemented a senior executive development programs (EDP) to help senior executives develop global vision while streamlining management structure. We completed the first phase of the "Egret-Flying Plan" targeting senior executive associates and the "Egret-Flying-on Plan" targeting middle-and long-term senior executive associates.

CGN has developed and implemented diversified personnel training programs including international talent orientation training classes, language classes, and senior executive classes, and has trained more than 500 international talents. In April 2017, CGN was designated as one of the five pilot units for introducing international talents and innovation by the State-owned Assets Supervision and Administration Commission of the State Council.

We organized 31 managerial staff to take part in training activity named as " Visiting Formosa Group, learning lean management" in Taiwan.

Senior management training

Key personnel training

Staff Development

CGN established an international talent pool and a reserve talent pool. At present, we have 2,032 international talents in reserve. A total of 245 excellent employees have been selected to work for overseas projects in the UK, France, Namibia and Malaysia.

2

We have continuously managed and improved the internal talent pool. At the end of 2017, 178 job opportunities had been offered to our internal employees, and 2,100 employees signed up for it. A further 2,400 people expressed interest in doing so. The internal personnel turnover rate of CGN has reached 55% .

4

1 CGN formulated a policy of sending employees abroad to help them realize their values and better the company's personnel structure.

We also develop localized recruitment in overseas project sites in countries such as the UK, Namibia, and Malaysia. Posts including chief operating officer, human resources manager, legal advisor, and financial manager were taken by local people, and a total of 1,776 employees were recruited locally by CGN. The numbers of local workers recruited at the Swakop and Edra projects were 1,538 and 131 respectively.

3

4.37 million hours

In 2017, training hours of staff reached

289 operators

153 senior operators

In 2017, CGN cultivated

and

Training hours of each staff reached

103 hours


Promote transparent communication

SDGs

Our actions

Promote Community Development

More than

people have visited a nuclear power basein the past few years

600,000

Donated

41.44 million yuan

8,600 staff members

participated in public service activities

9 million people

The“Taking wedding photos in an NPP”activity attracted nearly

Promote transparent communicationAdvance targeted poverty relief effortsEncourage volunteering and corporate responsibilityStrive to blend into the local community

Participants in the “Taking wedding photos in a NPP”activity: Sun Zhiqin (R) and Li Shaoting (L)


Transparent communication

15Participated in

large-scale domestic and overseas exhibitions

Organized

press conferences

18

600,000More than

people have visited CGN's 12 science exhibition halls

10of them on "Xinwen Lianbo" (CCTV's flagship news program at 7 pm)

38CCTV aired

reports on CGN in 2017

9 million people

The activity of "Taking wedding photos in a NPP" attracted nearly

and became a phenomenon-level topic in the nuclear industry in China

Communication channel

Reach outInvite in

Industrial tourismRegular community

notification

Nuclear power science popularization in campus

Nuclear power science popularization in community

Exhibition

Brand activityPress conference

Public open day

Tour of nuclear power plant

Science exhibition hall

The EXPO Astana 2017 opened in Kazakhstan on June 9, local time. CGN promoted China's homegrown nuclear technology HPR1000 at the future energy-themed exhibition, drawing more than 10 heads of government and hundreds of thousands of tourists. Chinese President Xi Jinping introduced "HPR1000" technology to Kazakhstan President Nursultan Nazarbayev when visiting the China Pavilion.

HPR1000 going global through 2017 Astana EXPOCase

Overseas community

Swakop has provided special funding to support youth employment, food supply, drought relief and other special funds through the construction and operation of the Husab Uranium Mine. CGN's contributions to economic development, social progress, infrastructure construction,and international relations under the plan are highly recognized and appreciated by President Hage Geingob.

The third Husab Marathon, one of the biggest marathons in Africa, kicked off in Namibia on August 5, 2017, attracting over 780 marathon enthusiasts from China, Namibia, and South Africa.

The Edra project in Malaysia is actively engaged in community charity projects such as offering scholarships, sponsoring the non-profit organization Women of Will to assist low-income single mothers and disadvantaged women, to serve and promote local development.

CGN Europe Energy opened its wind farms to 50 pupils in Lower Normandy on Global Wind Day, giving children lectures on wind power.

A harmonious community relationship is of great importance to the successful implementation of CGN's overseas projects. We learn from overseas community building experiences and launch featured culture and craft activities to create harmonious communities.


Responsibility performanceSafe Production

Category Indicator2015

Comparison of performance

Number of units put into operation

advanced indicators of mature units accounted for

Unplanned shutdown (times)

INES level 2 and above nuclear events

INES level 0*2

Death toll

Mortality rate per 100,000 people during nuclear power construction

Number of serious injuries

0

0

0

0

0

0

0verdose radiation accidents (times)

Loss of radioactive sources (times)

Internal contamination accidents (times)

Work hours of nuclear power project (one hundred million man-hours)

Work hours of conventional power project (one hundred million man-hours)

Total (one hundred million man-hours)

14

71.4%

2

0

8

2016

19

72.2%

1

0

36

2017

20

73.8%*1

2

0

16

Nuclear safety

Personal safety

Fire safety Number of fire accidents (times) 0 0

0

0

0

0

0

0

0

0

0

0

0

0

1.1

0.27

1.37

0.9

0.2

1.1

0.88

0.5

1.38

0

Radioprotection

Amount of

project risk

Year 2015

506

65.24

14.92

14.08

Operating income (RMB 100 million)

Total tax payment (RMB 100 million)

Nuclear power in operation (GW)

Non-nuclear energy in operation (GW)

2016

654

86.35

20. 38

23.33

2017

850

97.08

21.47

23.64

2015

4,327

2016

5,292

2017

6,352

Total assets (RMB 100 million)

2015

29

2016

43.71

2017

45.11

Installed capacity in operation (GW)

Note 1: Data listed above is for 20 units in operation

Note 2: According to the INES prepared by IAEA, level 0 events have no impact on nuclear power plant operation and the environment, so they are excluded from consideration from a safety standpoint.

Clean and Environmental Protection

Care for staff

Value Creation

Harmonious community

Daya Bay Nuclear Power BaseIndicator2016

0.17%

0.14%

180.4

Normal

0.47%

0.44%

276.4

Normal

0.49%

0.35%

21.2

Normal

0.38%

0.30%

42.8

Normal

0.09%

0.26%

12.9

Normal

0.78%

0.39%

101.25

Normal

0.32%

0.58%

183.6

Normal

0.38%

0.51%

176.4

Normal

0.23%

0.18%

114.4

Normal

0.22%

0.15%

196.8

Normal

2017 2016 2017 2016 2017 2016 2017 2016 2017

Yangjiang NPP Fangchenggang NPP

Ningde NPP Hongyanhe NPP

Proportion of liquid effluent(radionuclides except for tritium) in national annual limitProportion of gaseous effluent (inert gases) in national annual limit

Amount of solid radioactive waste (m3 )

Environmental monitoring result

Discharge of the three wastes

2015

0.3109

2016

0.3078

2017

0.2019

2015

148.42

2016

169.84

2017

163.90

2015

8,511

2016

13,985

2017

16,000

Consumption of comprehensive energy (10,000 tons of standard coal)

Synthetic energy consumptionper 10,000 RMB of GDP (tons of standard coal with current price/10,000 RMB)

Clean power equivalence toreduction of CO emission (10,000 tons)2

Performance indicators 2015

34,874

16.93%

7.7%

371

122

4,645

4%

Number of staff

Proportion of female staff

Proportion of management posts

Training hours for staff(10,000 hours)

Training hours per staff (hour)

Number of new staff

Turnover rate of staff

2016

37,857

16.72%

7.0%

416

130

4,148

3.91%

2017

41,040

15.87%

7.41%

437

103

4,306

7.29%

Performance indicators 2015

2,211

10,000

65,000

Total donations (RMB 10,000)

Voluntary services (person-time)

Number of nuclear base visitors (person-times)

2016

2,631.34

7,500

66,000

2017

4,144

8,600

100,000

WeChat Official Account of CGN

"hebaoyizu"Wechat Account

China General Nuclear Power Corporation

Postcode: 518026

Fax: 86-755-83699900

Website: en.cgnpc.com.cn

Address: CGN Building,

No. 2002 Shennan

Boulevard,

Shenzhen, 518026, P.R.

China

Documents

(Concise Edition)en.cgnpc.com.cn/encgn/re2018/201807/e1e3224b265a4bb59da7...safety as a concrete manifesto of "political awareness". We will keep in mind General Secretary Xi Jinping's