| Stock code: 000037, 200037 | Stock abbreviation: Shenzhen Nanshan Power A, Shenzhen Nanshan Power B | Announcement No.: 2025-009 |
Shenzhen Nanshan Power Co., Ltd.
2024 Annual Report
April 2025
2024 Annual Report
Section I Important, contents and definitions
The Board of Directors, the Board of Supervisors, directors, supervisors andsenior officers guarantee that the contents of the annual report are true,accurate and complete, without any false records, misleading statements ormajor omissions, and shall bear individual and joint legal liability.Kong Guoliang, the Principal, Chen Yuhui, the Chief Accountant, ZhangXiaoyin, the Chief Financial Officer, and Lin Xiaojia, Head of the FinanceDepartment (Finance Head), guarantee that the financial reports in the annualreport are true, accurate and completeAll directors attended the meeting of Board of Directors at which the reportwas reviewed.The Company has planned not to distribute cash dividends, give away bonusshares, or increase share capital by capital reserves.The annual report is prepared in Chinese and English respectively. If there isany ambiguity in the understanding of the two texts, the Chinese text shallprevail. Investors are requested to read the full text of the annual reportcarefully.If there are forward-looking statements in the annual report involving thecompany's future development strategy, business plans, etc., they do not
constitute the Company's substantive commitment to investors. Investors areadvised to maintain adequate risk awareness and understand the differencesbetween plans, forecasts and commitments, and pay attention to investmentrisks.
Table of contents
Section I Important, contents and definitions ...... 2
Section II Company profile and key financial indicators ...... 7
Section III Management discussion and analysis ...... 12
Section IV Corporate governance ...... 45
Section V Environmental and social responsibilities ...... 72
Section VI Important matters ...... 75
Section VII Changes in shares and shareholders ...... 83
Section VIII Preferred shares ...... 91
Section IX Bonds ...... 91
Section X Financial report ...... 92
List of documents for inspection
I. Financial statements bearing the signatures and seals of the Principal, Chief Financial Officer and Chief Accountant
(accounting supervisor) of the Company.II. The original auditor's report stamped by the accounting firm and signed and stamped by the certified public accountant.III. The originals of all the Company's documents and announcements that have been publicly disclosed on the designated
media during the reporting period.IV. Place of inspection: office of the Company's Board of Directors.
Interpretation
| Item | Refer to | Content |
| Company, the Company, Shenzhen Nanshan Power and listed company | Refer to | Shenzhen Nanshan Power Co., Ltd. |
| CSRC | Refer to | China Securities Regulatory Commission |
| Shenzhen State-owned Assets Supervision and Administration Commission | Refer to | State-owned Assets Supervision and Administration Commission of Shenzhen People's Government |
| Energy Corporation | Refer to | Shenzhen Energy Corporation |
| Shenzhen Nanshan Power Zhongshan Company | Refer to | Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. |
| Shenzhen Nanshan Power Engineering Company | Refer to | Shenzhen Nanshan Power Gas Turbine Engineering Technology (Shenzhen) Co., Ltd. |
| Shenzhen Nanshan Power Environmental Protection Company | Refer to | Shenzhen Nanshan Power Environmental Protection (Shenzhen) Co., Ltd. |
| Shenzhen Nanshan Power Xiwan Company | Refer to | Shenzhen Nanshan Power Xiwan Energy (Zhongshan) Co., Ltd. |
| Xiefu Company | Refer to | Shenzhen Xiefu Energy Co., Ltd. |
| New Power Company | Refer to | Shenzhen New Power Industrial Co., Ltd. |
| Nanshan Power Plant | Refer to | Shenzhen Nanshan Power Co., Ltd. Nanshan Power Plant |
| Zhongshan Nanlang Power Plant | Refer to | Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. Zhongshan Nanlang Power Plant |
| Huidong Xiefu | Refer to | Huidong Xiefu Port Comprehensive Development Co., Ltd. |
| Shenzhen United Property and Equity Exchange | Refer to | Shenzhen United Property and Equity Exchange |
| Zhuozi Fund | Refer to | Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) |
| Company Law | Refer to | Company Law of the People's Republic of China |
| Securities Law | Refer to | Securities Law of the People's Republic of China |
| Stock Listing Rules | Refer to | Rules Governing the Listing of Stocks on Shenzhen Stock Exchange |
| Articles of Association | Refer to | Articles of Association of Shenzhen Nanshan Power Co., Ltd. |
| RMB, RMB 10,000, RMB 100,000,000 | Refer to | Except for the specially described monetary units, the remaining ones are RMB, RMB 10,000, and RMB 100,000,000 |
| Reporting period | Refer to | From January 1, 2024 to December 31, 2024 |
Section II Company profile and key financial indicatorsI. Company information
| Stock name | Shenzhen Nanshan Power A, Shenzhen Nanshan Power B | Ticker | 000037, 200037 |
| Stock exchange | Shenzhen Stock Exchange | ||
| Name in Chinese | Shenzhen Nanshan Power Co., Ltd. | ||
| Abbreviation in Chinese | Shenzhen Nanshan Power | ||
| Name in English (if any) | Shenzhen Nanshan Power Co., Ltd. | ||
| Legal representative of the Company | Kong Guoliang | ||
| Registered address | No. 2097, Yueliangwan Avenue, Nanshan District, Shenzhen, Guangdong Province | ||
| Postal code | 518054 | ||
| Historical changes of registered address | None | ||
| Office address | 16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, Guangdong Province | ||
| Postal code | 518053 | ||
| Website | http://www.nsrd.com.cn | ||
| Public@nspower.com.cn; investor@nspower.com.cn | |||
II. Contact and contact information
| Secretary of the Board of Directors | Securities representative | |
| Name | Zou Yi | |
| Contact address | 16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, Guangdong Province | |
| Tel. | 0755-26003611 | |
| Fax | 0755-26003684 | |
| investor@nspower.com.cn |
III. Information disclosure and preparation location
| The stock exchange website where the Company discloses its annual report | Shenzhen Stock Exchange: http://www.szse.cn/ |
| Name and website of the media where the Company discloses its annual report | Securities Times: http://www.stcn.com/ Cninfo: http://www.cninfo.com.cn/ |
| Preparation location of annual report | Office of the Board of Directors, 17/F, Hantang Building, OCT, Nanshan District, Shenzhen, Guangdong Province |
IV. Changes in registration
| Unified social credit code | 91440300618815121H |
| Changes in the Company's main business since its listing (if any) | No change |
| Previous changes in controlling shareholders (if any) | No controlling shareholder |
V. Other relevant informationThe accounting firm hired by the Company
| Name of the accounting firm | Lixinzhonglian CPAS (Special General Partnership) |
| Office address | 1-1-2205-1, North District, Financial and Trade Center, No. 6865 Yazhou Road, Tianjin Pilot Free Trade Zone (Dongjiang Bonded Port Zone) |
| Name of signatory accountant | Cao Wei, Li Mincong |
The sponsor hired by the Company to perform continuous supervision responsibilities during the reporting period
□ Applicable ?Not applicable
Financial consultant hired by the Company to perform continuous supervision duties during the reporting period
□ Applicable ?Not applicable
VI. Key accounting data and financial indicators
Whether the Company needs to retroactively adjust or restate the accounting data of previous years
□Yes ?No
| 2024 | 2023 | Change compared with the previous year | 2022 | |
| Operating revenue (RMB) | 442,971,955.85 | 589,780,190.71 | -24.89% | 694,227,657.28 |
| Net profit attributable to shareholders of listed companies (RMB) | 21,908,828.57 | 4,158,797.10 | 426.81% | -160,163,240.67 |
| Net profit attributable to shareholders of listed companies after deducting non-recurring profit or loss (RMB) | -87,508,091.57 | -70,789,007.91 | -23.62% | -225,967,573.71 |
| Net cash flows from operating activities (RMB) | -37,635,766.05 | -100,371,976.92 | 62.50% | 207,168,402.26 |
| Basic earnings per share (RMB/share) | 0.0363 | 0.0069 | 426.09% | -0.2657 |
| Diluted earnings per share (RMB/share) | 0.0363 | 0.0069 | 426.09% | -0.2657 |
| Weighted average rate of return on net assets | 1.49% | 0.29% | Increased by 1.20 percentage points | -10.43% |
| End of 2024 | End of 2023 | Change compared with the end of the previous year | End of 2022 |
| Total assets (RMB) | 2,012,736,635.59 | 2,049,365,388.69 | -1.79% | 2,606,216,345.99 |
| Net assets attributable to shareholders of listed companies (RMB) | 1,485,380,575.08 | 1,459,288,691.94 | 1.79% | 1,455,129,894.84 |
The Company's net profit before and after deducting non-recurring profit or loss in the past three fiscal years, whichever is lower,is negative; meanwhile, the auditor's report for the most recent year shows that there is uncertainty in the Company's going-concern ability
□Yes ?No
The lower of net profit before and after deducting non-recurring profit or loss is negative.?Yes □No
| Item | 2024 | 2023 | Remark |
| Operating revenue (RMB) | 442,971,955.85 | 589,780,190.71 | Mainly from power production and sales and integrated energy services |
| Amount after deduction of operating revenue (RMB) | 5,642,037.47 | 1,409,620.51 | Mainly from self-owned property lease and property lease management services |
| Amount after deduction of operating revenue (RMB) | 437,329,918.38 | 588,370,570.20 | Operating revenue after deducting revenue from self-owned property lease and property lease management services |
VII. Differences in accounting data under domestic and foreign accounting standards
1. Differences in net profit and net assets in financial reports disclosed in accordance with bothinternational and Chinese accounting standards
□ Applicable ?Not applicable
There was no difference between net profit and net assets in the financial reports disclosed in accordance with both internationaland Chinese accounting standards during the reporting period of the Company.
2. Differences in net profit and net assets in financial reports disclosed in accordance with bothinternational and Chinese accounting standards
□ Applicable ?Not applicable
There was no difference between net profit and net assets in the financial reports disclosed in accordance with both internationaland Chinese accounting standards during the reporting period of the Company.
VIII. Key financial indicators by quarter
Unit: RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operating revenue | 80,580,975.91 | 107,323,288.80 | 183,104,712.19 | 71,962,978.95 |
| Net profit attributable to shareholders of listed companies | -29,071,219.61 | -8,779,890.29 | -7,777,120.17 | 67,537,058.64 |
| Net profit attributable to shareholders of listed companies after deducting non-recurring profit or loss | -32,868,603.74 | -11,891,453.34 | -11,138,395.03 | -31,609,639.46 |
| Net cash flows from operating activities | -71,854,442.05 | 18,857,950.62 | -28,410,239.05 | 43,770,964.43 |
Whether there are significant differences between the above financial indicators or their totals and the relevant financial indicatorsdisclosed by the Company in quarterly reports and semi-annual reports or not
□Yes ?No
IX. Non-recurring profit or loss and amounts
?Applicable □Not applicable
Unit: RMB
| Item | Amount in 2024 | Amount in 2023 | Amount in 2022 | Remark |
| Profit or loss on disposal of non-current assets (including write-off of provision for asset impairment) | 163,881,112.16 | 1,878,391.11 | -1,171,953.71 | Mainly affected by the profit or loss of the 40% equity transfer of Huidong Xiefu and the profit or loss of land acquisition and storage of Shenzhen Nanshan Power Zhongshan Company. |
| Government subsidies included in current profit or loss (except those that are closely related to the Company's normal business, in line with national policy regulations and in accordance with defined criteria, and have a lasting impact on the Company's profit or loss) | 486,069.90 | 44,431,212.00 | 9,333,093.72 | Mainly due to the government subsidies related to income. |
| Profit or loss from changes in fair value of financial assets and liabilities held by non-financial enterprises and profit or loss from the disposal of financial assets and financial liabilities, except for effective hedging operations related to the Company's normal business operations | 11,286,239.10 | 18,538,064.54 | 58,227,971.21 | Mainly from the investment income obtained from the structured deposits. |
| Reversal of provision for impairment of receivables individually tested for impairment | 0.00 | 1,235,154.68 | 0.00 | |
| Other non-operating revenue and expenses other than the above | 775,495.19 | 11,628,630.83 | -635,065.42 | Mainly due to housing demolition and resettlement subsidies. |
| Less: income tax impact | 9,140,402.85 | 0.00 | 0.00 | |
| Changes in the amount of minority interests (after tax) | 57,871,593.36 | 2,763,648.15 | -50,287.24 | |
| Total | 109,416,920.14 | 74,947,805.01 | 65,804,333.04 | -- |
Details of other profit or loss that meet the definition of non-recurring profit or loss:
□ Applicable ?Not applicable
The Company had no specific profit or loss items that meet the definition of non-recurring profit or loss.Notes on the definition of the non-recurring profit or loss items listed in the "Interpretive Announcement No. 1 on InformationDisclosure of Companies Issuing Securities to the Public - Non-recurring Profit or Loss" as recurring profit or loss items
□ Applicable ?Not applicable
The Company had no circumstances of definition of the non-recurring profit or loss items listed in the "Interpretive AnnouncementNo. 1 on Information Disclosure of Companies Issuing Securities to the Public - Non-recurring Profit or Loss" as recurring profitor loss items.
Section III Management discussion and analysisI. Industry status of the Company during the reporting periodThe Company shall comply with the disclosure requirements for power supply industry in the Shenzhen Stock Exchange ListedCompany Self-Regulatory Guidelines No. 3 - Industry Information DisclosureIn 2024, China's power consumption demand continued to grow steadily, with the national total electricity consumption reaching
9.85 trillion KWH, a year-on-year increase of 6.8% and an increase of growth rate by 0.1% compared with the previous year, andwith the electricity consumption of the whole industry (including the primary, secondary and tertiary industries) reaching 8.36trillion KWH, a year-on-year increase of 6.2%, reflecting the stability of China's economic fundamentals and the continuousimprovement of the electrification level of terminal energy consumption. Driven by the "Carbon Peaking and Carbon Neutrality"goal and energy transition, the power production industry accelerated its transition to green and low-carbon. As at the end of 2024,the annual installed capacity of power generation exceeded 3.35 billion KWH, a year-on-year increase of 14.6%, and the installedcapacity of non-fossil energy accounted for more than half, marking a new stage in China's energy structure adjustment.Specifically, the installed capacity of new energy power generation, including wind power, solar power and biomass powergeneration, reached 1.45 billion KWH, surpassing the installed capacity of thermal power (1.44 billion KWH) for the first timeand becoming the main supporting power source of the new power system. Among them, the installed capacity of solar powergeneration was 887 million KWH (up 45.2% YoY), and the installed capacity of wind power was 521 million KWH (up 18%YoY), which completed the goal of "1.2 billion KWH of total installed capacity of wind power in 2030" proposed at the nationalclimate ambition summit six years ahead of schedule. The growth rate of thermal power installed capacity slowed downsignificantly (up 3.2% YoY), coal-fired power's share of total installed capacity declining to 35.7% (down 4.2% Yo Y).Nevertheless, coal power still plays an important role in the grid as both baseload and peaking capacity. The annual coal powergeneration still accounted for 54.8% of the total electricity output, remaining the cornerstone of grid stability. In general, a newpower system with new energy as its mainstay is being formed at an accelerating pace.In the context of the accelerated restructuring of the global energy pattern and the continuous advancement of the "carbon peakingand carbon neutrality goals", building a new power system with new energy as the mainstay and deepening the reform of thepower system have become a key task for China's energy development. In 2024, China's new energy storage maintained rapidgrowth, with an annual new energy storage installed capacity of 43.7 million KWH/109.8 million KWH. By the end of 2024, thecumulative installed capacity of new energy storage projects in China reached 73.76 million KWH/168 million KWH, about 20times that at the end of the 13th Five-Year Plan, with an increase of more than 130% compared with the end of 2023. Thecumulative installed capacity of new energy storage exceeded that of pumped storage for the first time. This indicates that thesupporting development path of the coordinated development of energy storage and new energy has gradually transformed fromthe initial stage of policy promotion to market-oriented development needs. With the rapid development of the new energy andenergy storage industry, a large number of new energy and energy storage projects need professional technical service support, andthe integrated energy service industry has also ushered in development opportunities. Under the development trend of deepsynergy of "source, network, load and storage", integrated energy service, as an emerging business model, can integrate variousenergy resources, provide customers with one-stop and integrated energy solutions, effectively meet customers' diversified needsfor energy efficient use, low-carbon environmental protection and cost control, and show great development potential and broadmarket prospects.
II. Main business of the Company during the reporting periodThe Company shall comply with the disclosure requirements for power supply industry in the Shenzhen Stock Exchange ListedCompany Self-Regulatory Guidelines No. 3 - Industry Information Disclosure
The Company's primary business includes power and heat supply for production and operation, and technical consulting andtechnical services related to power plants (stations). At the end of the reporting period, the Company's Nanshan Power Plant had atotal of 3 sets of 9E type gas-steam combined cycle generating units with a total installed capacity of 540,000 KW. The powerplant is located in the power load center area of Qianhai Free Trade Zone, Shenzhen, and is the main peak shaving power supplyplant in the region. It is currently in normal production and operation. Zhongshan Nanlang Power Plant received the Letter onMatters Regarding the Units Shutdown of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. Nanlang Power Plant fromEnergy Bureau of Guangdong Province on November 6, 2023, in which Energy Bureau of Guangdong Province agreed to shutdown two 180MW gas-fired cogeneration units of Zhongshan Nanlang Power Plant. At present, the two sets of 9E gas-steamcombined cycle power generating units owned by Zhongshan Nanlang Power Plant have been shut down and withdrawn fromdispatching operation, and the generating unit equipment and related assets have been successfully listed for transfer in March2025.During the reporting period, the Company's primary business of power faced challenges such as fierce competition in the powermarket and sustained high fuel price. In the face of the complex and ever-changing economic situation at home and abroad and theincreasingly fierce market competition, the Company has strengthened its confidence in development, maintained its strategicfocus, adhered to the core values of "professionalism and dedication, innovation and efficiency, courage and decisiveness,harmony and mutual benefit", took deepening reform as a key breakthrough point, actively responded to various problems andchallenges, and made every effort to promote the orderly development of all work. Through a series of solid measures, theCompany's new business layout has achieved breakthroughs, the main business has been further compacted, the managementefficiency has been continuously improved, the market-oriented reform has been steadily advanced, and the profit level hasreached a new level, laying a solid foundation for the sustainable development of the Company.During the reporting period, the Company focused on the operation and development and market expansion of affiliates. ShenzhenNanshan Power Engineering Company, relying on its years of technical experience in the construction of gas turbine power stationprojects and accumulated cooperation resources, focused on the relevant engineering service business in the gas turbine field. Withprofessional and refined technical capabilities, it signed a number of contracts successively to provide professional technicalservices for customers; Shenzhen Nanshan Power Environmental Protection Company takes integrated energy service as thetransformation development direction, comprehensively develops integrated energy service projects such as industrial andcommercial energy storage, distributed photovoltaics and charging piles, and strives to build a new integrated energy servicebusiness model. It has initially formed an integrated service model of "investment, construction, operation, management andmaintenance"; Xiefu Company actively expanded its business scope, focused on the property lease management service businessof Energy Corporation, and significantly improved its market development ability, property management ability and profitability.At the same time, it efficiently revitalized inefficient resources and successfully completed the transfer of 40% equity of HuidongXiefu.
Main production and operation information
| Item | Reporting period | Same period last year |
| Total installed capacity (10,000 KW) | 54 | 54 (excluding the installed capacity of two generating units of Zhongshan Nanlang Power Plant that were shut down and withdrawn from dispatching operation in November 2023) |
| Installed capacity of newly commissioned unit (10,000 KW) | 0 | 0 |
| Planned installed capacity of approved projects (10,000 KW) | 0 | 0 |
| Planned installed capacity of projects under construction (10,000 KW) | 0 | 0 |
| Power generation (100 million KWH) | 5.12 | 6.57 |
| On-grid energy or energy sold (100 million KWH) | 5.10 | 6.54 |
| Average power consumption rate of the power plant (%) | 3.85% | 3.90% |
| Utilization hours of the power plant (hours) | 933 | 723 |
The Company's power sales?Applicable □Not applicableShenzhen Nanshan Power Environmental Protection Company, a subsidiary of the Company, was approved to carry out market-oriented power sales in Guangdong Province in January 2024. While carrying out power sales, Shenzhen Nanshan PowerEnvironmental Protection Company actively expands power value-added services, including industrial and commercial energystorage, contract energy management, comprehensive energy saving and energy consulting services. In 2024, Shenzhen NanshanPower Environmental Protection Company purchased 34.42 million KWH of electricity on behalf of its users, a remarkablebreakthrough.Reasons for significant changes in relevant data
□ Applicable ?Not applicable
III. Core competitiveness analysis
In recent years, the Company's primary business has been facing increasing difficulties and challenges due to the macroeconomicsituation and common issues in the gas turbine power generation industry. However, the fundamental core competitiveness formedover more than thirty years of operation and development, along with strong support from the major shareholders, innovativemanagement practices adopted by the Company's Board of Directors and management team, have laid a necessary foundation forthe Company's ongoing operations and pursuit of transformative development. During the reporting period, the Company adheredto the concept of steady development, firmly believed in its strategy, flexibly adjusted its business strategy, carefully optimized itsresource allocation, successfully overcame a series of development problems, and further consolidated and enhanced its corecompetitiveness.
1. Management culture of hard work and innovation. The Company has a group of management personnel with a sense ofinnovation and the spirit of hard work. By deepening human resource reform and building a performance-oriented appraisal andincentive mechanism, the Company advocates and creates a management culture of unity, hard work, innovation and progress. Inaddition, the Company attaches great importance to and vigorously promotes the construction of its institutional, management, andcompliance systems. It adheres to a standardized management that is law-abiding, regulation-compliant scientific, rigorous,efficient and orderly. Through process-based, refined and standardized management guidance, the Company has established asolid foundation for deeply tapping into internal potential and actively seeking external opportunities.
2. Professional and enterprising technical talents. With more than 30 years of hard work and influence in the gas turbine powergeneration industry, the Company has attracted and trained a group of technical experts and professionals in the gas turbineindustry, and has accumulated rich experience in the construction and operational management of gas turbine power plants. In
order to comply with the market trend of power market-oriented reform in the Guangdong Province, the Company has establisheda professional power marketing team to study power trading strategies, explore and build power marketing mathematical models.The accumulative rich experience in power marketing has laid a solid foundation for the Company to participate in theconstruction of new power market and integrate into the wave of power market reform. In addition, with its excellent technicalstrength, Shenzhen Nanshan Power Engineering Company has provided comprehensive professional services such as technicalconsulting, commissioning and operation guarantee for dozens of gas turbine power stations at home and abroad; The Companyhas successively undertaken the technical personnel training business of dozens of power plants at home and abroad. With high-quality training content and professional teaching team, it has become a well-known professional talent training base in thedomestic gas turbine industry, and has established a good reputation and professional brand image in the industry.
3. A level of expertise that is up to date. In recent years, the Company has continued to increase its R&D efforts and promotedthe implementation of innovation-driven development. The scientific research and innovation work has been unanimouslyrecognized by the society. On December 26, 2024, it successfully passed the review again and obtained the national high-techenterprise certificate. The Company has a number of independent invention patents, utility model patents and software copyrights,and jointly drafted and prepared 1 national standard. During the reporting period, the Company applied for 2 invention patents and5 utility model patents to the China National Intellectual Property Administration, of which 1 utility model patent has been granted.The Company's total number of authorized patents has reached 45 (including 5 invention patents) and 8 software copyrights,which has greatly enhanced the Company's brand image and industrial competitiveness.
4. Rich experience in industrial exploration. The Company gives full play to its own advantages, makes every effort to developthe integrated energy service business field, and continuously accumulates experience in the construction and operation of newenergy industries such as electrochemical energy storage, photovoltaics, and charging piles. Through the construction andoperation of energy storage black start projects, photovoltaic projects, MTC industrial and commercial energy storage project, theconstruction of Zhongshan independent energy storage power station, and the development of integrated photovoltaic, storage andcharging projects, the Company has accumulated rich experience in the construction, commissioning and operation & maintenanceof new energy and energy storage projects, and has trained a group of professional and technical talents. In addition, the talentaccumulation and technical advantages of the traditional power industry have prepared sufficient technical and talent resources forthe Company to enter the field of integrated energy service and laid a solid foundation.
5. Leading environmental protection level. The Company's generator units are all gas-fired generator units that use natural gasas fuel. The CO2 emissions in flue gas are approximately 42% of those of coal-fired power plants, providing strong support for thenational "carbon peaking and carbon neutrality" construction. In accordance with the requirements of the Shenzhen MunicipalPeople's Government 2018 'Shenzhen Blue' Sustainable Action Plan, the Company fully completed the "Shenzhen Blue"transformation of the #3, #10 and #1 gas turbines of Nanshan Power Plant. After the transformation, the nitrogen oxide emissionsof each unit were reduced to less than 15mg/m3, reaching the world's most advanced level. Nanshan Power Plant was also selectedas the Top Plant Award by Power Magazine, the most authoritative magazine in the global power industry founded in 1882.IV. Main business analysis
1. Overview
In 2024, the Company officially entered the integrated energy service business field. The Company has always adhered to the corevalues of "professionalism and dedication, innovation and efficiency, courage and decisiveness, harmony and mutual benefit",took professionalism and dedication as the cornerstone, deeply cultivated the integrated energy service business field, andcontinuously improved its professional ability and service level; driven by innovation and efficiency, the Company activelyexplored system and mechanism reform, optimized processes, and improved operation efficiency; with courage and boldness, theCompany dares to break through and take responsibility when facing market competition and uncertainties; with harmony and
mutual benefit as the goal, the Company works together with shareholders, customers, partners and employees to create value. Themain work carried out by the Company during the reporting period is as follows:
(1) Optimize the industrial layout and make new breakthroughs in transformation and development. In the current context ofaccelerating restructuring of the global energy landscape and increasingly fierce market competition, the Company has furtherclarified its strategic direction of transformation to an integrated energy service provider based on industry trends, market demandand its own advantages. During the reporting period, the Company closely focused on the strategic transformation direction, madeevery effort to expand the integrated energy service projects, initially built the "investment, construction, operation, managementand maintenance" platform, and was committed to providing customers with more professional services and enhancing theCompany's core competitiveness. In the field of investment, the Company completed the first investment of RMB 50 million in theenergy storage master fund, and invested in the establishment of an energy storage sub-fund with a total scale of RMB 400 million.It plans to set up an energy storage company with a scale of RMB 200 million under the energy storage sub-fund, which isresponsible for the investment of power station projects. The investment direction mainly includes independent energy storagepower stations, industrial and commercial energy storage power stations, and integrated light storage and charging stations.Shenzhen Nanshan Power Environmental Protection Company will coordinate with the resources within the Company's system todo a good job in the operation and maintenance management of energy storage companies, provide comprehensive and integratedservices for the development, research and judgment, investment, construction, operation and maintenance of fund power stationprojects, and promote the strategic layout of the Company in new energy and energy storage and other fields with the help of thefund, and accelerate the exploration and construction of integrated energy service business models. In the field of projectconstruction, Shenzhen Nanshan Power Environmental Protection Company has seized the opportunity of the development ofenergy storage industry, and focused on the transformation to new energy and energy storage fields, with new energy projectsflourishing in many places. During the construction of the MTC Industrial and Commercial Energy Storage Project, ShenzhenNanshan Power Environmental Protection Company strictly controlled the project quality, carefully optimized the project cost,improved the cost control system, and refined the project standardized management process to complete the project constructionwith high quality. After the project was officially put into operation, the energy storage system operated efficiently and well, andthe revenue was higher than expected, laying a solid foundation for the Company to expand into the field of integrated energyservice. In the field of project operation and maintenance, Shenzhen Nanshan Power Engineering Company, with its years oftechnical experience in gas turbine power station engineering construction and accumulated cooperation resources, has given fullplay to the advantages of technical personnel, obtained the license qualification for contracting and commissioning power facilities,and focused on the relevant engineering service business in the field of gas turbine and new energy, and has signed a number oftechnical service contracts successively. In the Qinghai Golmud 300 MW Gas Turbine Power Station Project, through providingprofessional technical services to customers, the Company successfully signed several contracts for project management,supervision, EPCM management, commissioning and operation and maintenance, demonstrating the Company's profoundfoundation in the field of project operation and maintenance. In the field of property lease management, Xiefu Company seized theopportunity in property lease management services. Facing the challenges of its shortfalls in professional capabilities, it took theinitiative and quickly organized all its employees to participate in real estate business ability training, comprehensively improvedmarket development ability, property management ability, and comprehensive service level. As a result, the overall occupancy ratehas been steadily rising, and its profitability has been continuously improving.
(2) Focus on increasing the efficiency of existing resources, with comprehensive business capabilities reaching a new level.During the reporting period, the Company has always adhered to the enterprising attitude of hard work, focused on its mainresponsibilities and primary business, actively implemented the concept of lean management with innovative thinking and activeawareness, and was committed to improving the profitability of assets in stock, revitalizing assets in stock, and maximizing theefficiency of assets. In terms of improving the operating capacity of assets in stock, the Company dynamically adjusted the powermarketing and fuel procurement strategies, scientifically coordinated the gas-electric matching, and completed the on-grid energy
of 510 million KWH. At the same time, the Company deeply studied the capacity tariff policy and actively strived for the incomeof capacity tariff. In addition, Shenzhen Nanshan Power Environmental Protection Company has achieved a remarkablebreakthrough in the power sales, with a cumulative sales of 34.42 million KWH, adding a new profit growth point for theCompany. In terms of revitalization of assets in stock, the Company has made every effort to promote the land acquisition andstorage of Shenzhen Nanshan Power Zhongshan Company, and on the one hand, further optimized and adjusted the transfer,recovery, land certificate cancellation and relocation compensation payment time of the land involved in the original Agreementon the Recovery of State-Owned Land Use Rights and the Relocation Compensation Agreement, signed a supplementaryagreement, and realized the delivery of 190 mu of land in Plot A, and received a total of RMB 220 million of compensation forland acquisition and storage. On the other hand, it made full use of the line assets of Shenzhen Nanshan Power ZhongshanCompany, on the basis of the traditional project operation concept, innovatively used the capital operation concept, and proposedan innovative solution for the reuse of existing facilities and the contribution of line assets, according to which, Shenzhen NanshanPower Zhongshan Company and Zhongshan Nanlang Construction Development Co., Ltd. jointly established a Project Companyto implement the construction of the 300 MW/600 MWh Independent Energy Storage Power Station (Phase I) in Cuiheng NewDistrict, Zhongshan City, and built an independent energy storage power station with a scale of 100 MW/200 MWh, whicheffectively revitalized the assets in stock and significantly expanded the Company's energy storage industry layout. At the sametime, the Company actively promoted the listing and transfer of generating unit equipment and related assets of Shenzhen NanshanPower Zhongshan Company, optimized the listing plan in a timely manner according to market conditions, actively expandedpotential buyer resources, dynamically adjusted negotiation strategies, and promoted the transaction process in multipledimensions, and finally successfully delisted the unit equipment and related assets in March 2025; in addition, Xiefu Companysuccessfully completed the listing and transfer of 40% equity of Huidong Xiefu, and recovered RMB 57.89 million.
(3) Coordinate safety and development, and build a new pattern of safety management. The Company has firmly established theconcept of safety development, continuously improved the work safety guarantee system, comprehensively implemented the mainresponsibility, consolidated the work safety foundation, actively carried out work safety supervision and management, madeefforts to ensure a stable work safety situation, and continuously maintained the "five-no" safety goal, which has laid a solid safetyfoundation for the Company's steady progress. First, sign the list of safety responsibilities, improve the target management andcontrol measures, and comprehensively clarify and carry out the safety management responsibilities. Implement the work safetyresponsibility system for all employees, strictly and meticulously implement work safety measures, and firmly build the bottomline of work safety. Second, carry out safety management work in a solid manner and make every effort to resolve safety risks.Deepen the "three-year special action for fundamental improvement of work safety", actively implement self-examination andself-correction of safety precautions and cross-checking, comprehensively find out and dynamically grasp the bottom line of majorhidden dangers of work safety, and promote the implementation of statutory responsibilities of enterprise leaders and work safetyresponsibility system, and promote the pre-prevention work safety governance model. Third, go deep into the front line to carryout service coordination and make every effort to strengthen safety supervision. Continuously strengthen the safety supervision ofthe affiliated enterprises, in the form of "leading group to the grassroots" and "Four No's and Two Directs", form a strong safetyculture atmosphere, lay a solid foundation for work safety, and promote the smooth development of various safety work.
(4) Highlight the improvement of efficiency, and take new steps in market-oriented reform. The Company focuses on market-oriented reform to stimulate the vitality of endogenous innovation and development. During the reporting period, the Companycontinued to improve the market-oriented salary incentive mechanism, strengthen the performance-oriented assessment standards,and fully stimulate the initiative of the team; further promoted the performance-oriented culture, continuously optimized theincentive and restraint assessment mechanism for senior executives, and innovatively implemented the "annual + term" dual-targetcontractual management for senior executives; Establish a scientific and reasonable differentiated performance indicatorassessment system, further strengthen the business performance indicators of affiliates and the performance assessment of theCompany's management personnel, and create an incentive and constraint system focusing on value contribution. Continue to
improve the management efficiency of all links of talent selection, cultivation and retention, and adhere to the training andselection of young management personnel as a strategic measure to lay a foundation for long-term benefits; strengthen campusrecruitment and promote the transformation of talent introduction to recruit more professional and younger employees; strengthentalent training, focus on improving the comprehensive ability of management personnel and employees of the Company, andimplement targeted policies to improve the quality and efficiency of comprehensive training. Optimize and improve the market-oriented management and control mode of affiliates, formulate a list of powers and responsibilities for each enterprise according toits specific situation, scientifically and reasonably delegate authority, realize the equivalence of rights, responsibilities and benefits,and effectively improve the operational efficiency and innovation ability of affiliates.
(5) Focus on scientific and efficient methods, and achieve new results in management system reform. Adhering to the principleof "building a firm foundation, whole-chain coordination, gradual deepening, and focusing on practical results", the Company hascomprehensively reformed the management system and mechanism to build a solid foundation for the transformation anddevelopment of the Company. During the reporting period, the Company completed the re-election of the Board of Directors andthe Board of Supervisors, further improved the Company's legal person governance structure, and vigorously promoted thestandardization of the legal person governance process of its affiliates to improve the overall legal person governance level of theCompany; continuously optimized its institutional system, actively carried out the construction of process standardization system,completed the construction of its process standardization management system framework, and effectively improved the itsstandardized management level; deepened the construction of compliance system, organized all affiliates to build a complianceaudit mechanism for key processes and key decision-making matters, and strengthened compliance management; strengthenedaudit supervision, paid attention to risk prevention and control in key areas, paid close attention to the implementation of auditrectification by carrying out special audits such as economic benefit audit, economic responsibility audit and procurement audit,and promoted the improvement of the Company's risk prevention and control level; continuously consolidated the accountingsystem, strengthened the foundation of financial and tax management, promoted comprehensive budget management with highstandards, improved the effectiveness and efficiency of financial services, further optimized the capital management mechanism,and continuously improved the capital structure of the Company.
(6) Strengthen organizational support and continuously strengthen the building of Party organizations. The Company adheres tothe guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, firmly grasps the generalrequirements of Party building in the new era, focuses on the key links of the Company's operation management and reform anddevelopment, promotes the deep integration of party building work and business, and provides a solid political guarantee for theCompany's high-quality development. First, strengthen the political leadership of Party organizations. The Company hassuccessfully completed the high-standard election of the Party Committee and Discipline Inspection Commission, while refiningthe leadership mechanism of "two-way entry and cross-appointment" to achieve organic unity between Party leadership andcorporate governance. The Company has resolutely implemented the request-for-instructions and reporting system for majormatters, ensuring the Party organization fully exercises its leadership role insetting direction, managing overall situations, andguaranteeing implementation. Second, strengthen the ideological leadership of the Party organization. The Company hasthoroughly studied and implemented the spirit of the Third Plenary Session of the 20th CPC Central Committee, strictlyimplemented the "First Topic" system, and refined the Party Committee Theoretical Study Center Group learning mechanism. Theleading group of the Party Committee has carried out in-depth special research on key topics, established and improvedmechanisms for translating study outcomes into practice, and effectively improved the effectiveness of ideological guidance. Third,improve the Party organization's capacity to mobilize the masses. The Company has meticulously developed the "Party-building+"mechanism and carried out a series of "Party-building + Culture" activities. By focusing on diverse groups such as frontlineemployees and young staff, it enriched workers' spiritual and cultural lives through varied activities, effectively achievingideological unity and cohesion of collective strength.
In 2024, the Company reported an operating revenue of RMB 442.972 million, and net profit attributable to shareholders of thelisted company of RMB 21.9088 million, maintaining profitability after achieving a turnaround against market headwinds in 2023,with basic earnings per share standing at RMB 0.0363.
2. Revenue and costs
(1) Composition of operating revenue
Unit: RMB
| 2024 | 2023 | Year-on-year increase or decrease | |||
| Amount | Proportion to operating revenue | Amount | Proportion to operating revenue | ||
| Total operating revenue | 442,971,955.85 | 100% | 589,780,190.71 | 100% | -24.89% |
| By sector | |||||
| Power industry | 437,329,918.38 | 98.73% | 588,370,570.20 | 99.76% | -25.67% |
| Others | 5,642,037.47 | 1.27% | 1,409,620.51 | 0.24% | 300.25% |
| Total | 442,971,955.85 | 100.00% | 589,780,190.71 | 100.00% | -24.89% |
| By product | |||||
| Power production and sale | 419,930,286.71 | 94.80% | 562,688,722.91 | 95.41% | -25.37% |
| Integrated energy service | 39,382,694.07 | 8.89% | 42,299,536.01 | 7.17% | -6.90% |
| Others | 5,768,308.02 | 1.30% | 1,468,149.52 | 0.25% | 292.90% |
| Consolidation offset | -22,109,332.95 | -4.99% | -16,676,217.73 | -2.83% | -32.58% |
| Total | 442,971,955.85 | 100.00% | 589,780,190.71 | 100.00% | -24.89% |
| By region | |||||
| Domestic | 442,971,955.85 | 100.00% | 589,780,190.71 | 100.00% | -24.89% |
| Total | 442,971,955.85 | 100.00% | 589,780,190.71 | 100.00% | -24.89% |
| Sales mode | |||||
| Direct sales | 442,971,955.85 | 100.00% | 589,780,190.71 | 100.00% | -24.89% |
| Total | 442,971,955.85 | 100.00% | 589,780,190.71 | 100.00% | -24.89% |
(2) Industries, products, regions, and sales models that account for more than 10% of the Company's operating revenue oroperating profit?Applicable □ Not applicableThe Company shall comply with the disclosure requirements for power supply industry in the Shenzhen Stock Exchange ListedCompany Self-Regulatory Guidelines No. 3 - Industry Information Disclosure
Unit: RMB
| Operating revenue | Operating costs | Gross margin | Year-on-year increase or decrease in operating revenue | Year-on-year increase or decrease in operating costs | Year-on-year increase or decrease in gross margin | |
| By sector | ||||||
| Power industry | 437,329,918.38 | 414,222,881.99 | 5.28% | -25.67% | -28.73% | 4.06% |
| Others | 5,642,037.47 | 1,223,850.40 | 78.31% | 300.25% | 367.65% | -3.13% |
| Total | 442,971,955.85 | 415,446,732.39 | 6.21% | -24.89% | -28.55% | 4.80% |
| By product | ||||||
| Power production and sale | 419,930,286.71 | 405,194,367.48 | 3.51% | -25.37% | -29.18% | 5.18% |
| Integrated energy service | 39,382,694.07 | 28,530,461.10 | 27.56% | -6.90% | 13.78% | -13.16% |
| Others | 5,768,308.02 | 1,223,850.40 | 78.78% | 292.90% | 367.65% | -3.39% |
| Consolidation offset | -22,109,332.95 | -19,501,946.59 | -32.58% | -21.80% | ||
| Total | 442,971,955.85 | 415,446,732.39 | 6.21% | -24.89% | -28.55% | 4.80% |
| By region | ||||||
| Domestic | 442,971,955.85 | 415,446,732.39 | 6.21% | -24.89% | -28.55% | 4.80% |
| Total | 442,971,955.85 | 415,446,732.39 | 6.21% | -24.89% | -28.55% | 4.80% |
| Sales mode | ||||||
| Direct sales | 442,971,955.85 | 415,446,732.39 | 6.21% | -24.89% | -28.55% | 4.80% |
| Total | 442,971,955.85 | 415,446,732.39 | 6.21% | -24.89% | -28.55% | 4.80% |
Reasons for major changes in relevant financial indicators
□ Applicable ?Not applicable
(3) Whether the Company's physical sales revenue is greater than its labor service revenue?Yes □No
| Industry | Item | Unit | 2024 | 2023 | Year-on-year increase or decrease |
| Power industry | Sales volume | 100 million KWH | 5.10 | 6.54 | -22.02% |
| Production | 100 million KWH | 5.12 | 6.57 | -22.07% | |
| Inventory | 100 million KWH | 0.00 | 0.00 |
Explanation for relevant data changed by more than 30% year-on-year
□ Applicable ?Not applicable
(4) Performance of the major sales contracts and major procurement contracts signed by the Company as of the reportingperiod
□ Applicable ?Not applicable
(5) Composition of operating costs
Industry classification
Unit: RMB
| Industry | Item | 2024 | 2023 | Year-on-year increase or decrease | ||
| Amount | Proportion to operating costs | Amount | Proportion to operating costs | |||
| Power industry | Fuel | 334,421,830.98 | 80.50% | 470,823,746.78 | 80.98% | -28.97% |
| Power industry | Employee compensation | 24,415,894.99 | 5.88% | 39,310,209.34 | 6.75% | -37.89% |
| Power industry | Manufacturing cost | 55,385,156.02 | 13.33% | 71,046,886.25 | 12.22% | -22.04% |
| Other non-primary business | Others | 1,223,850.40 | 0.29% | 261,701.61 | 0.05% | 367.65% |
(6) Whether there are changes in the consolidation scope during the reporting period
?Yes □NoIn July 2024, Shenzhen Nanshan Power Zhongshan Company contributed RMB 51 million (accounting for 51%) in kind to jointlyestablish Shenzhen Nanshan Power Xiwan Energy (Zhongshan) Co., Ltd. with Zhongshan Nanlang Construction Development Co.,Ltd. The project company was included in the scope of consolidated statements of the Company during the reporting period.
(7) Significant changes or adjustments to the Company's business, products or services during the reporting period
□ Applicable ?Not applicable
(8) Major sales customers and major suppliers
The Company's main sales customers
| Total sales amount of top five customers (RMB) | 437,747,218.87 |
| Ratio of the total sales amount of the top five customers to total annual sales | 98.82% |
| Ratio of sales to related parties in the annual total sales of the top five customers | 1.20% |
Information on the Company’s top 5 customers
| No. | Customer name | Sales (RMB) | Ratio to total annual sales |
| 1 | Shenzhen Power Supply Bureau Co., Ltd. | 419,942,071.51 | 94.80% |
| 2 | China Machinery Engineering Corporation | 8,396,522.89 | 1.90% |
| 3 | Shenzhen Energy Corporation | 4,155,080.27 | 0.94% |
| 4 | PetroChina Company Limited Qinghai Oilfield Company | 4,096,132.08 | 0.92% |
| 5 | Shenzhen MTC Co., Ltd. | 1,157,412.12 | 0.26% |
| Total | - | 437,747,218.87 | 98.82% |
Other information on major customers?Applicable □ Not applicableShenzhen Energy Corporation and Shenzhen MTC Co., Ltd. are affiliated legal persons of the Company.
The Company's main suppliers
| Total purchase amount of top five suppliers (RMB) | 359,774,622.94 |
| Ratio of the total purchase amount of the top five suppliers to the total annual purchase amount | 83.54% |
| Ratio of purchase amount of related parties among the top five suppliers to the total annual purchase amount | 0.00% |
Information on the Company's top 5 suppliers
| No. | Supplier name | Purchase amount (RMB) | Ratio to total annual purchase amount |
| 1 | Shenzhen Gas Group Co., Ltd. | 314,701,539.09 | 73.07% |
| 2 | CNOOC Gas & Power Group Guangdong Company | 19,720,291.89 | 4.58% |
| 3 | Shenzhen Power Supply Bureau Co., Ltd. | 11,333,832.48 | 2.63% |
| 4 | Yotai Digital Energy Technology (Shenzhen) Co., Ltd. | 7,864,648.45 | 1.83% |
| 5 | Shenzhen Zhongshenli Development Technology Co., Ltd. | 6,154,311.03 | 1.43% |
| Total | - | 359,774,622.94 | 83.54% |
Other information on major suppliers
□ Applicable ?Not applicable
3. Cost
Unit: RMB
| 2024 | 2023 | Year-on-year increase or decrease | Description of significant changes | |
| Selling and distribution expenses | 3,155,604.58 | 2,831,748.65 | 11.44% | |
| G&A expenses | 95,507,099.03 | 58,330,596.87 | 63.73% | Mainly due to: first, the performance bonus was settled due to changes in operating conditions in the previous year, resulting in a decrease in employee compensation in the current year; second, according to the development needs of the Company's strategic transformation and new business, to strengthen the construction of the management system, the relevant expenses have increased this year. |
| Financial expenses | 6,815,765.10 | 11,579,637.38 | -41.14% | Mainly due to the Company's continuous optimization of asset and liability structure and reduction in financing scale, resulting in a year-on-year decrease in financial expenses. |
| R&D expenses | 21,341,778.27 | 26,839,912.74 | -20.48% |
4. R&D investment
?Applicable □Not applicable
| Name of main R&D project | Purpose | Progress | Goals to be achieved | Expected impact on the Company's future development |
| Research and Development of Power Access System for | Conduct research and development of the photovoltaic power | Completed | Achieve the diversified application of power supply access methods | Improve the safety and reliability of the production, operation |
| Intelligent Operation and Maintenance of Photovoltaic Power Gas Turbine Power Plant | access system, change the traditional single power supply mode and improve the access system performance; reduce operation and maintenance costs and ensure the stable operation of local power grids. | of gas turbine power plants, realize the safe use of the access method of "self-consumption and surplus power on the grid" for photovoltaic power generation in the traditional power system, and reduce energy consumption. | and maintenance of unit equipment, and enhance the scientific and technological content and core competitiveness of the Company's products and services. | |
| Research and Development of Cooling Water Recycling System for Gas Turbine Power Plants | Through research and development, optimize the cooling water pipeline structure, improve the direction of the cooling water pipeline, realize recycling and reduce costs. | Completed | Complete the structural optimization of the gas turbine cooling water system, and adopt new technologies to improve economic benefits. | Improve the performance of the equipment, optimize the system structure of the equipment, reduce costs, and improve the scientific and technological content and core competitiveness of the Company's products and services. |
| Research and Development of Control Method for Central Cooling System of Gas Turbine Waste Heat Boiler | Through research and development, optimize the control method of boiler centralized cooling, improve the efficiency of equipment cooling, and improve the economy of equipment operation. | Completed | Complete the performance upgrade and update of the centralized cooling system of the waste heat boiler, innovatively use excellent technologies, and reduce energy consumption. | Optimize and improve the performance of the equipment, improve the operating efficiency of the equipment, and enhance the scientific and technological content and core competitiveness of the Company's products and services. |
| Research and Development of Intelligent Access System for NEV Charging Pile With Photovoltaic Power Generation | Through the research and development of the intelligent access system of the charging pile, optimize the system parameters to improve the automation of the access system and the reliability of the operation. | Completed | Optimize the intelligent access system of the vehicle charging pile, effectively use new data parameters to improve the comprehensive performance, and improve the reliability of the photovoltaic charging access system. | Improve equipment performance through research, optimize the reliability of photovoltaic system operation, and improve the scientific and technological content and core competitiveness of the Company's products and services. |
| Research and Development of Intelligent Control System for Turbine Power Supply | Through research and development, optimize the turbine power switching device in design and application, improve the AC power supply performance of the power grid and improve the safety of equipment operation. | Completed | Optimize the equipment in design and application, improve the performance of grid power supply, and improve the operation safety of equipment. | Actively develop new design technologies, improve the performance and safety of unit equipment, and enhance the scientific and technological content and core competitiveness of the Company's products and services. |
| Research and Development of 6 KV Auxiliary Power Rapid Switching System for Gas Turbine Power Plants | Conduct research and development on the 6 KV auxiliary power rapid switching system for the gas turbine to eliminate the hidden dangers and risks of the equipment and improve the operation reliability of the unit. | Completed | Complete the innovative upgrade of the 6 KV auxiliary power rapid switching system of the gas turbine to ensure the safe operation of the unit equipment. | Research the technological and innovative application in equipment, use new technologies to reduce hidden dangers in equipment operation, improve equipment performance, and enhance the scientific and technological content and core competitiveness of the Company's products and services. |
| Research and Development of Adjustable Negative Pressure System Device for 9E Gas Turbine Oil Tank | Through the research on the adjustable negative pressure system in the gas turbine oil tank, ensure the safe operation of the gas turbine oil tank, eliminate the risk of oil leakage and fire, and improve the safety of the unit equipment operation. | Completed | Complete the upgrading and reconstruction of the negative pressure adjustable system of the gas turbine oil tank to ensure the safe and stable operation of the unit. | Optimize the performance of the equipment, eliminate hidden dangers, improve the safety of the equipment, and improve the scientific and technological content and core competitiveness of the Company's products and services. |
R&D staff
| 2024 | 2023 | Change ratio | |
| Number of R&D staff | 86 | 87 | -1.15% |
| Proportion of number of R&D staff | 29.45% | 30.63% | -1.18% |
| Educational structure of R&D staff | |||
| Undergraduate | 52 | 47 | 10.64% |
| Postgraduate | 2 | 1 | 100.00% |
| Age composition of R&D staff | |||
| Under 30 years old | 16 | 16 | 0.00% |
| 30-40 years old | 10 | 10 | 0.00% |
| Over 40 years old | 60 | 61 | -1.64% |
R&D investment of the Company
| 2024 | 2023 | Change ratio | |
| Amount of R&D investment (RMB) | 21,341,778.27 | 26,839,912.74 | -20.48% |
| Ratio of R&D investment in the operating revenue | 4.82% | 4.55% | 0.27% |
| Amount of R&D investment (RMB) | 0.00 | 0.00 | 0.00% |
| Ratio of capitalized R&D investment in R&D investment | 0.00% | 0.00% | 0.00% |
Reasons and impacts of major changes in the Company's R&D staff composition
□ Applicable ?Not applicable
Reasons for the significant change in the proportion of total R&D investment in operating revenue compared with the previousyear
□ Applicable ?Not applicable
Reasons for substantial changes R&D investment capitalization rates and their rationale
□ Applicable ?Not applicable
5. Cash flow
Unit: RMB
| Item | 2024 | 2023 | Year-on-year increase or decrease |
| Sub-total of cash inflows from operating activities | 552,472,905.42 | 739,641,073.57 | -25.31% |
| Sub-total of cash outflows from operating activities | 590,108,671.47 | 840,013,050.49 | -29.75% |
| Net cash flows from operating activities | -37,635,766.05 | -100,371,976.92 | 62.50% |
| Sub-total of cash inflows from investing activities | 592,454,642.68 | 749,228,184.97 | -20.92% |
| Sub-total of cash outflows from investing activities | 292,298,619.89 | 456,538,387.59 | -35.98% |
| Net cash flows from investing activities | 300,156,022.79 | 292,689,797.38 | 2.55% |
| Sub-total of cash inflows from financing activities | 484,026,209.56 | 421,093,926.90 | 14.94% |
| Sub-total of cash outflows from financing activities | 586,252,718.34 | 950,780,554.86 | -38.34% |
| Net cash flows from financing activities | -102,226,508.78 | -529,686,627.96 | 80.70% |
| Net increase in cash equivalents | 160,332,202.10 | -337,286,752.50 | 147.54% |
Explanation of the main factors affecting significant year-on-year changes in relevant data?Applicable □ Not applicable
(1)During the reporting period, the cash outflow from operating activities decreased by 29.75% year-on-year, mainly becauseShenzhen Nanshan Power Zhongshan Company no longer engaged in power production due to land acquisition and storage andthe approved unit shutdown, which reduced the cash outflow due to the inverted cost price of gas-fired electricity; at the same time,due to the Company's strengthening of comprehensive budget control and vigorously implementing management measures toreduce costs and increase efficiency, the cost control level has increased through the implementation of intensive procurement andthe reduction of variable costs.
(2) During the reporting period, the net cash flows from operating activities increased by 62.5% year-on-year, mainly due to theCompany's strengthening of working capital management, the recovery of accounts receivable from the integrated energy servicebusiness in previous years by Shenzhen Nanshan Power Engineering Company, and the cessation of power production and salebusiness by Shenzhen Nanshan Power Zhongshan Company, resulting in a year-on-year decrease in cash outflows from operatingactivities.
(3) During the reporting period, the cash outflow from investing activities decreased by 35.98% year-on-year, mainly due to theyear-on-year decrease in the structured deposits of the Company's stock funds in commercial banks and the year-on-year decreasein the cash outflow from investing activities.
(4) During the reporting period, the cash outflow from financing activities decreased by 38.34% year-on-year, mainly due to theoptimization of the Company's asset and liability structure and the decrease in cash paid for debt repayment, resulting in thedecrease in cash outflow from financing activities year-on-year.
(5) During the reporting period, the net cash flows from financing activities increased by 80.7% year-on-year, mainly due to thefact that the Company revitalized the line assets and resources of Shenzhen Nanshan Power Zhongshan Company after landacquisition and storage and unit shutdown, the newly established Shenzhen Nanshan Power Xiwan Company received the paid-incapital from external shareholders, and the cash paid for debt repayment decreased year-on-year, resulting in the increase in netcash flows from financing activities year-on-year.
(6) During the reporting period, the net increase in cash and cash equivalents increased by 147.54% year-on-year, mainly due to:
first, the revitalization of the Company's assets in stock was remarkable, Shenzhen Nanshan Power Zhongshan Company receivedthe progress payment for land acquisition and storage, and Xiefu Company completed the equity transfer of Huidong Xiefu;second, the Company strengthened working capital management, and Shenzhen Nanshan Power Engineering Company receivedaccounts receivable from integrated energy service business in previous years; third, the Company revitalized the line assets andresources of Shenzhen Nanshan Power Zhongshan Company, and the newly established Shenzhen Nanshan Power XiwanCompany received the paid-up capital contribution from external shareholders; in addition, the cash paid by the Company to repaydebts decreased year-on-year, and the comprehensive impact on the net increase in cash and cash equivalents increased year-on-year.Explanation of the reasons for the significant difference between the net cash flow generated by the Company's operating activitiesduring the reporting period and net profit for the year?Applicable □ Not applicableDuring the reporting period, the net cash flow from operating activities of the Company was -RMB 37.6358 million, which wassignificantly changed from the net profit of RMB 63.9274 million in the current year. It was mainly due to the comprehensiveimpact of non-cash expenses such as gains from disposal of assets, investment income, asset impairment loss, losses from creditimpairment, amortization of deferred income, changes in operating receivables and payables, depreciation and amortization, andfinancial expenses. The main items are as follows:
(1) The gain from disposal of assets of RMB 163.53 million was included in the net profit of the current year but did not affect thenet cash flow from operating activities;
(2) The investment income of RMB 84.4883 million was included in the net profit of the current year but did not affect the netcash flow from operating activities;
(3) The asset impairment loss of RMB 66.3895 million was included in the net profit of the current year but did not affect the netcash flow from operating activities;
(4) In the current year, the Company received accounts receivable of RMB 50.3205 million for integrated energy services inprevious years, which increased the net cash flow from operating activities but did not affect the net profit of the current year;
(5) The interest cost of RMB 11.8295 million was included in the net profit of the current year but did not affect the net cash flowfrom operating activities.V. Analysis of non-main business
?Applicable □ Not applicable
Unit: RMB
| Amount | Ratio in total profit | Explanation of causes | Sustainability | |
| Investment income | 84,488,299.90 | 114.77% | Mainly from the investment income obtained by the transfer of 40% equity of Huidong Xiefu by Xiefu Company, the investment income obtained by the structured deposits held by the Company, and the investment income recognized and accounted for under the equity method for the participated companies. | The investment income recognized and accounted for under the equity method for the participated companies is sustainable |
| Asset impairment | -66,389,539.68 | -90.18% | Mainly due to the asset impairment losses recognized in accordance with the transaction status of the listed power generation unit equipment and related assets of Shenzhen Nanshan Power Zhongshan Company after the land acquisition and storage and the decommissioning of the generating units. | No |
| Gains from disposal of assets | 163,529,971.97 | 222.14% | Mainly from the gains from disposal of assets of Plot A that has been derecognized. This is because Shenzhen Nanshan Power Zhongshan Company completed the cancellation of the land use rights and building structures within the scope of land acquisition and storage, as well as the confirmation of the transfer of the land of Plot A in this year. | No |
| Non-operating revenue | 553,068.40 | 0.75% | No | |
| Non-operating expenses | 135,334.48 | 0.18% | No |
VI. Analysis of assets and liabilities
1. Major changes in asset composition
Unit: RMB
| End of 2024 | Beginning of 2024 | Increase or decrease in proportion | Description of significant changes | |||
| Amount | Ratio of total assets | Amount | Ratio of total assets | |||
| Monetary funds | 478,979,221.66 | 23.80% | 316,188,782.49 | 15.43% | 8.37% | First, the company actively promoted the revitalization of assets in stock. Shenzhen Nanshan Power Zhongshan Company completed the handover confirmation of Plot A and received the progress payment of land acquisition and storage; Xiefu Company completed the equity transfer of Huidong Xiefu and recovered the equity transfer payment; second, the Company strengthened working capital management, and Shenzhen Nanshan Power Engineering |
| Company recovered the accounts receivable of the integrated energy service business in previous years; third, the Company revitalized the line assets of Shenzhen Nanshan Power Zhongshan Company, and the newly established Shenzhen Nanshan Power Xiwan Company received paid-in capital contribution from external shareholders, resulting in an increase in monetary funds. | ||||||
| Accounts receivable | 67,817,025.91 | 3.37% | 111,975,251.10 | 5.46% | -2.09% | Mainly due to the Company's strengthening of working capital management, and the recovery of accounts receivable of previous years' integrated energy service business in the current period, resulting in a decrease in accounts receivable. |
| Contract assets | 95,580.68 | 0.00% | 88,000.00 | 0.00% | 0.00% | |
| Inventories | 80,234,374.79 | 3.99% | 86,158,251.16 | 4.20% | -0.21% | |
| Investment properties | 1,498,009.84 | 0.07% | 1,664,566.60 | 0.08% | -0.01% | |
| Long-term equity investments | 90,587,521.44 | 4.50% | 90,001,176.04 | 4.39% | 0.11% | |
| Fixed assets | 451,203,790.97 | 22.42% | 571,482,734.35 | 27.89% | -5.47% | Mainly due to the fact that according to the land acquisition and storage agreement of Shenzhen Nanshan Power Zhongshan Company, the houses and buildings and other assets included in the scope of acquisition and storage in the current period were transferred to the assets held for sale, and the asset impairment loss of the generating unit equipment and related assets of Shenzhen Nanshan Power Zhongshan Company was accrued, resulting in a decrease in fixed assets. |
| Construction in progress | 6,983,713.85 | 0.35% | 3,448,855.10 | 0.17% | 0.18% | |
| Right-of-use assets | 6,160,020.43 | 0.31% | 2,266,946.42 | 0.11% | 0.20% | |
| Short-term borrowings | 268,615,009.19 | 13.35% | 341,237,886.72 | 16.65% | -3.30% | Mainly due to the optimization of the asset and liability structure and the repayment of short-term borrowings in the current period. |
| Contract liabilities | 50,000.00 | 0.00% | 0.00 | 0.00% | 0.00% | |
| Long-term borrowings | 0.00 | 0.00% | 58,829,426.30 | 2.87% | -2.87% | Mainly due to the optimization of the asset and liability structure and the repayment of long-term borrowings in the current period. |
| Lease liabilities | 2,125,910.18 | 0.11% | 0.00 | 0.00% | 0.11% |
| Other current liabilities | 107,922,984.82 | 5.36% | 0.00 | 0.00% | 5.36% | Mainly due to the compensation for Plot B received by Shenzhen Nanshan Power Zhongshan Company due to land acquisition and storage. Plot B has not been handed over, and the received compensation has been reclassified to other current liabilities. |
| Estimated liabilities | 0.00 | 0.00% | 15,000,000.00 | 0.73% | -0.73% | Mainly due to the transfer of 40% equity of Huidong Xiefu by Xiefu Company, the equity pledge was released, and the relevant estimated liabilities were reversed. |
| Financial assets held for trading | 0.00 | 0.00% | 226,000,000.00 | 11.03% | -11.03% | Mainly due to the redemption of structured deposits purchased with stock funds. |
| Other non-current liabilities | 0.00 | 0.00% | 104,045,112.54 | 5.08% | -5.08% | Mainly due to the fact that according to the latest progress of land acquisition and storage of Shenzhen Nanshan Power Zhongshan Company, the land compensation price received for Plot B of the land has been reclassified to other current liabilities. |
| Assets held for sale | 24,582,784.59 | 1.22% | 0.00 | 0.00% | 1.22% | Mainly due to the fact that according to the land acquisition and storage agreement of Shenzhen Nanshan Power Zhongshan Company, in the current period, assets such as building structures and land use rights within the scope of land acquisition and storage were transferred to assets held for sale according to the transfer list, resulting in an increase in assets held for sale. |
| Other receivables | 131,831,575.62 | 6.55% | 19,233,117.52 | 0.94% | 5.61% | Mainly due to the fact that according to the land acquisition and storage agreement of Shenzhen Nanshan Power Zhongshan Company, the income from the land acquisition and storage of Plot A was recognized in the current period, leading to an increase in the accounts receivable related to the land acquisition and storage. |
| Intangible assets | 1,349,731.81 | 0.07% | 19,285,629.03 | 0.94% | -0.87% | Mainly due to the fact that according to the land acquisition and storage agreement of Shenzhen Nanshan Power Zhongshan Company, in the current period, the land use rights within the scope of land acquisition and storage were transferred to assets held for sale according to the transfer list, resulting in a decrease in intangible assets. |
| Other investments in equity instruments | 354,798,054.57 | 17.63% | 300,615,000.00 | 14.67% | 2.96% | Mainly due to the Company's new investment in Shenzhen New Energy Storage Industry Equity Fund, and the increase in |
| investments in other equity instruments in the current period. | ||||||
| Employee compensation payable | 16,052,879.47 | 0.80% | 46,238,982.57 | 2.26% | -1.46% | Mainly due to the payment of employee resettlement compensation related to land acquisition and storage of Shenzhen Nanshan Power Zhongshan Company in the current period, resulting in a decrease in employee compensation payable |
Overseas assets account for a high proportionApplicable ?Not applicable
2. Assets and liabilities measured at fair value
?Applicable □ Not applicable
Unit: RMB
| Item | Beginning balance | Profit or loss from changes in fair value of the current period | Cumulative changes in fair value included in equity | Provision for impairment of the current period | Purchase amount of the current period | Sales amount the current period | Other changes | Ending balance |
| Financial assets | ||||||||
| 1. Financial assets held for trading (excluding derivative financial assets) | 226,000,000.00 | 226,000,000.00 | 0.00 | |||||
| 2. Derivative financial assets | ||||||||
| 3. Other debt investments | ||||||||
| 4. Investments in other equity instruments | 300,615,000.00 | 4,183,054.57 | 1,683,054.57 | 50,000,000.00 | 354,798,054.57 | |||
| 5. Other non-current financial assets | ||||||||
| Subtotal of | ||||||||
| financial assets | ||||||||
| Investment properties | ||||||||
| Others | ||||||||
| Total | 526,615,000.00 | 4,183,054.57 | 1,683,054.57 | 50,000,000.00 | 226,000,000.00 | 354,798,054.57 | ||
| Financial liabilities | 0.00 | 0.00 |
Whether there are significant changes in the measurement attributes of the Company's main assets during the reporting period
□Yes ?No
3. Restrictions of asset rights as of the end of the reporting period
| Item | Ending balance (RMB) | Balance at the end of the previous year (RMB) |
| L/G deposit | 7,912,100.00 | 5,453,862.93 |
| Total | 7,912,100.00 | 5,453,862.93 |
VII. Investment status analysis
1. Overall situation
?Applicable □Not applicable
| Investment amount during the reporting period (RMB) | Investment amount during the same period last year (RMB) | Range of change |
| 101,000,000.00 | 0.00 | 100.00% |
2. Major equity investments acquired during the reporting period
?Applicable □Not applicable
Unit: RMB
| Name of investee | Main business | Investment method | Investment amount | Shareholding ratio | Sources of funds | Partner | Investment period | Product type | Progress as of the balance sheet date | Expected earnings | Profit or loss of investment in the current period | Litigation involved or not | Date of disclosure (if any) | Disclosure index (if any) |
| Shenzhen New Ener | Engage in equity invest | Not available due | 100,000,000.00 | 1.54% | Self-owned funds | Shenzhen Capital | The investment perio | Fund | Invested 50,000,000 | 0.00 | No | October 18, 2023; | Announcement No.: |
| gy Storage Industry Equity Fund Partnership (Limited Partnership) | ments, investment management, asset management and other activities with private funds | to short establishment time | Holdings Co., Ltd., Shenzhen Longhua Industrial Capital Investment Co., Ltd., etc. | d is ten years, and the exit period is five years. The extension of the operation period shall be reviewed by the general meeting of partners. | .00 | February 23, March 19, 2024 | 2023-039; 2024-012,014 | |||||||
| Shenzhen Nanshan Power Xiwan Energy (Zhongshan) Co., Ltd. | Energy storage technology services; solar power generation technical services; sales of photovoltaic equipment and components, etc. | Not available due to short establishment time | 51,000,000.00 | 51.00% | Contribution in kind | Zhongshan Nanlang Construction Development Co., Ltd. | Long term | Limited liability company | Preliminary construction has started | 0.00 | No | July 19, 2024 | Announcement No.: 2024-048 | |
| Shenzhen Yuanzhi Zhongkai | Engage in equity investments, invest | Not available due to short | 26,000,000.00 | 6.50% | Self-owned funds | Shenzhen Yuanzhi Energy | The investment period is 5 years | Fund | No | October 25, 2024 | Announcement No.: 2024-060 |
| Energy Storage Technology Innovation Private Fund Partnership (Limited Partnership) | ment management, asset management and other activities with private funds | establishment time | Storage Private Fund Management Co., Ltd., Shenzhen New Energy Storage Industry Equity Fund Partnership (Limited Partnership), etc. | and the exit period is 3 years; the extension of the operation period shall be reviewed by the general meeting of partners and can be extended for 2 years. |
3. Major ongoing non- equity investments during the reporting period
□Applicable ?Not applicable
4. Financial assets investment
(1) Securities investment situation
□Applicable ?Not applicable
The Company had no securities investments during the reporting period.
(2) Derivatives investment situation
□Applicable ?Not applicable
The Company had no derivative investments during the reporting period.
5. Usage of raised funds
□Applicable ?Not applicable
The Company has not used the raised funds during the reporting period.VIII. Major asset and equity sales
1. Sale of major assets
?Applicable □Not applicable
| Counterparty | Assets sold | Date of sale | Transaction prices (RMB 10,000) | Net profit contributed by the asset to the listed company from the beginning of the current period to the date of sale (RMB 10,000) | Impact of the sale on the Company (Note 3) | Ratio of net profit contributed by asset sales to the listed company in the total net profit | Pricing principles of asset sale | Whether it is related transactions | Relationship with the counterparty (applicable to related transactions) | Whether have all the property rights of the assets involved been transferred | Whether all the claims and debts involved have been transferred | Whether it is implemented as planned and as scheduled. If it is not implemented as planned, the reasons and the measures the Company has taken should be explained. | Disclosure date | Disclosure index |
| Cuiheng New District Management Committee, Zhongshan | Shenzhen Nanshan Power Zhongshan Company has three state- | December 12, 2023 | 58,445.35 | 13,058.77 | It is conducive to revitalizing the Company's assets in stock, improving its operating cash flows, relieving | 177.39% | Based on the asset appraisal results, it shall be determined after consultation by the Parties. | No | Non-related parties | No | No | Yes | November 8, December 15 and December 20, 2023; April 13, | Announcement No.: 2023-048, 052, 053; 2024-027,062,076。 |
| City | owned land use right located in Hengmen Industrial Zone, Nanlang Street, Cuiheng New District, Zhongshan City | its operating pressure, supporting it to better focus on transformation and development, and is in line with the Company's strategic development plan. | November 6, December 28, 2024. | |||||||||||
| Fujian Hengjing Investment Co., Ltd. | Generating units and auxiliary equipment of Shenzhen Nanshan Power Zhongshan Company | March 4, 2025 | 6,372.69 | -5,118.63 | It is conducive to ensuring the smooth completion of land acquisition and storage work of Shenzhen Nanshan Power Zhongshan Company, revitalizing assets in stock, and helping the Company's transformation and development. | -69.53% | The transfer shall be made through public listing on the Shenzhen United Property and Equity Exchange with the asset evaluation value as the base price for listing. | No | Non-related parties | No | No | Yes | December 7, 2024, March 6, 2025 | Announcement No.: 2024-070, 2025-002. |
2. Sale of major equity interests
?Applicable □Not applicable
| Counterparty | Equity sold | Date of sale | Transaction prices (RMB | Net profit contributed | Impact of the sale on the Company | Proportion of net profit | Pricing principles for equity sale | Whether it is relate | Relationship with the | Whether the equity | Whether it is imple | Disclosure date | Disclosure index |
| 10,000) | by the equity to the listed company from the beginning of the current period to the date of sale (RMB 10,000) | contributed by the equity sold to the total net profit of the listed company | d transactions | counterparty | involved has been transferred in full | mented as planned and as scheduled. If it is not implemented as planned, the reasons and the measures the Company has taken should be explained. | |||||||
| Huizhou Port Investment Group Co., Ltd. | 40% equity of Huidong Xiefu | October 25, 2024 | 5,788.77 | 2,867.05 | It is conducive to Xiefu Company to revitalize existing resources, improve the efficiency of asset operation, reduce capital pressure, make full use of the recovered funds, improve business conditions, and contribute to the Company's transformation and development. | 38.95% | The transfer shall be made through public listing on the Shenzhen United Property and Equity Exchange with the asset evaluation value as the base price for listing. | No | Non-related parties | Yes | Not applicable | September 12, October 30, December 3, 2024 | Announcement No.: 2024-055, 061, 066; |
IX. Analysis of major holding and joint-stock companies
?Applicable □Not applicableInformation about major subsidiary and joint-stock companies that affect the Company's net profit by more than 10%
Unit: RMB 10,000
| Company name | Company type | Main business | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. | Subsidiary | Gas turbine power generation, waste heat power generation, power supply and heat supply (excluding heat supply pipe networks), wharves, oil depots (excluding refined oil, hazardous chemicals and flammable and explosive products) and lease of power equipment and facilities; Land use rights lease; Nonresidential real estate lease. | 74,680 | 31,607.11 | -41,612.01 | 1,111.38 | 6,677.92 | 6,687.63 |
| Shenzhen Xiefu Energy Co., Ltd. | Subsidiary | Import and export business of goods and technology, domestic trade (excluding exclusive, controlled, and monopolized goods); lease business, etc. | 5,330 | 14,365.84 | 13,328.90 | 536.41 | 6,574.86 | 5,660.82 |
| Shenzhen New Power Industrial Co., Ltd. | Subsidiary | Technology development of waste heat utilization (excluding restricted items): waste heat utilization for power generation, gas turbine power generation. | 11,385 | 26,438.73 | 25,320.40 | 9,730.61 | -2,329.82 | -2,329.85 |
| Shenzhen Nanshan Power Gas Turbine Engineering Technology (Shenzhen) Co., Ltd. | Subsidiary | Technical consulting services of construction engineering for gas-steam combined cycle power plant (stations), maintenance and overhaul of operating equipment for gas-steam combined cycle power plant (stations); Engineering management services, technical services of engineering, power generation, solar power generation, and energy storage, as well as repairs of electrical equipment and general | 1,000 | 4,877.49 | 1,436.59 | 3,709.35 | -2,062.07 | -2,116.81 |
| equipment, etc. | ||||||||
| Shenzhen Nanshan Power Environmental Protection (Shenzhen) Co., Ltd. | Subsidiary | Energy storage technology services; Energy saving management services; Contract energy management; Technical services of solar power generation technology; Centralized fast charging stations; Engage in investing activities with self-owned funds. | 7,900 | 4,708.35 | 3,900.45 | 228.92 | -395.92 | -396.72 |
| Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. | Joint stock company | Chemical raw materials, chemicals, and energy | 4,075 | 105,598.54 | 82,629.80 | 69,972.00 | 11,094.03 | 9,706.63 |
Situation of acquiring and disposing subsidiary during the reporting period?Applicable □Not applicable
| Company name | Methods of acquiring and disposing subsidiary during the reporting period | Impact on overall production operations and performance |
| Shenzhen Nanshan Power Xiwan Energy (Zhongshan) Co., Ltd. | Not available due to short establishment time | It is conducive to promoting the Company's exploration and practice in the field of large-scale energy storage and helping the Company to transform to integrated energy service; the project is still in the construction stage and has no significant impact on the Company's operating performance. |
Notes to main holding and shareholding companiesShenzhen Nanshan Power Zhongshan Company: in December 2024, Shenzhen Nanshan Power Zhongshan Company received thefirst payment of RMB 45 million of the remaining compensation for the Plot A. As of the end of the reporting period, theCompany had cumulatively received the compensation payment of RMB 112,413,478 for Plot A, accounting for 50.03% of thetotal compensation payment for Plot A. In view of the fact that Plot A has met the conditions for derecognition, ShenzhenNanshan Power Zhongshan Company realized a profit or loss on asset disposal of RMB 163.2347 million in 2024.Xiefu Company: In September 2024, Xiefu Company publicly listed to transfer 40% of the equity of Huidong Xiefu. At the end ofOctober, Xiefu Company and Huizhou Port Investment Group Co., Ltd. signed the Property Transaction Contract on the transferof 40% of the equity of Huidong Xiefu. The total transfer price was RMB 57,887,725.65. During the reporting period, XiefuCompany received the transfer price of RMB 57,887,725.65 for 40% of the equity of Huidong Xiefu, and completed the industrialand commercial registration procedures for the change of shareholders.
X. Structured entities controlled by the company
□Applicable ?Not applicable
XI. Prospects for the Company's future development
1. Analysis of the Company's operating situation in 2025
In 2025, the Company's primary business will still face an extremely severe operating situation. First, natural gas price will remainhigh. With the steady recovery of the domestic economy and the gradual increase in demand, it is unlikely that the natural gasprice will experience a significant decline. Even though both the long-term contract price in 2025 and the expected spot nodalelectricity price are relatively low, there is still a possibility that the cost of power generation production could exceed the revenue.Second, the Company still faces a challenging responsibility to ensure the continuity of power supply. According to the Analysisand Forecast Report on the National Electricity Supply and Demand for 2024-2025 released by China Electricity Council, it isexpected that the total electricity consumption of the whole society in China will increase by about 6% YoY in 2025. According torelevant forecasts, for Guangdong Province, taking into account the continuous economic development and the continuousincrease in the installed capacity of new energy sources, it is expected that the maximum unified dispatching load demand duringthe summer period will reach 165 million kilowatts, representing a YoY growth of 5.1%. While the demand for power loadcontinues to rise, according to the planning arrangement of the Shenzhen Municipal Government, the Nanshan Power Plant hasbeen reduced from dual gas sources to single gas sources, the difficulty of fuel supply guarantee has further increased, and thepressure of the Company to guarantee power supply has further increased. Third, competition in the spot power market hasbecome increasingly fierce. At this stage, spot power market in Guangdong Province has established a power market system of"medium and long-term plus spot and ancillary services", which has clarified the goals of developing a clean, low-carbon, safe andefficient market. As a large number of new unit with higher energy efficiency and larger capacity come into operation, theCompany's existing 9E unit will be subject to an increasingly unfavorable situation in spot power market.Although the Company still faces difficulties and challenges, since 2024, a series of policies and safeguard measures have beenissued intensively at the national level, which have played a strong role in leading and promoting the construction of a new energysystem and further promoted the grid connection and dispatching of new energy storage. The 2025 National Energy WorkConference clearly stated that it is necessary to adhere to the green and low-carbon transformation, continue to promote theoptimization and adjustment of energy structure, and coordinate the energy work tasks of promoting the construction of newpower system. In this context, the Company's clear strategic development direction is highly consistent with the requirements ofthe country to accelerate the planning and construction of a new energy system, further promote the energy revolution, andachieve the "dual carbon" goals. With its long-term practice in the field of power system, the Company has built a mature andperfect power system operation mechanism, trained a large number of professional and technical talents in the fields of gas turbinepower generation, power trading, energy storage project "construction, operation, management and maintenance", and has certainadvantages in integrated energy service and energy storage project construction, operation, management and maintenance, laying agood foundation for the Company to carry out integrated energy service and energy storage business and build a "investment,construction, operation and maintenance" platform. At present, the Company is implementing independent energy storage,industrial and commercial energy storage, photovoltaic and other new energy industry upgrading projects, which are in line withthe latest policy guidance of the state, provinces and cities. The Company will seize the major historical opportunity of leapfrogdevelopment of new energy, continue to explore external opportunities for transformation and development by continuouslydeveloping the market, continue to deepen reform and innovation to stimulate internal potential and vitality, and continue tostrengthen capacity building to improve the overall quality of personnel, and spare no effort to promote the Company's high-quality development.
2. Summary of the Company's business plan in 2025
The year 2025 is a year for formulating the Company's 15th Five-Year Plan and also a crucial year for breaking the deadlock in theCompany's transformation and development. The Company will continue to be guided by Xi Jinping's thought of socialism withChinese characteristics in the new era, uphold the core values of "professionalism, innovation, efficiency, courage, and win-win",take "creating a green future with competent people" as its mission, carry forward the enterprise spirit of "being responsible,seeking new, succeeding in doing, and winning in doing", seize the major historical opportunity of leapfrog development of thenew energy industry, take "stabilizing the stock, increasing the increment, and deepening the reform" as the core task, fullycombine its own resources and ability endowment, and strive to build an integrated platform of "investment, construction,operation, management, and maintenance", actively create a diversified and intelligent integrated energy service system,continuously improve its core competitiveness, and firmly move forward around the vision of "becoming a domestic advancedintegrated energy service provider".
(1) Strengthen the direction and optimize the layout, and fully promote the transformation and development of the Company. First,focus on the strategic direction of building an integrated energy service provider, focus on key areas, fully expand projects, andcontinue to promote the Company's transformation and development. Second, promote the formal operation of the energy storagesub-fund, strengthen the linkage between the energy storage parent fund and the sub-fund, vigorously expand integrated energyservice projects by leveraging the fund tool, and deepen the Company's layout in the field of comprehensive energy servicebusiness. Third, take operation and maintenance as the starting point, improve the model of integrated energy service provider,and forge the ability of the whole industry chain. Give full play to the Company's advantages in the field of electric power, throughthe undertaking of diversified operation and maintenance projects, continuously accumulate site resources, enrich projectexperience, build a professional team, gradually establish an industry-leading professional operation and maintenance platform,and on this basis, build a full-chain service system integrating "investment, construction, operation and maintenance",continuously enhance the Company's core competitiveness in the field of integrated energy services, and gradually build a perfectbusiness model of integrated energy service provider. Fourth, fully promote the transformation and upgrading of affiliatedenterprises around the strategic direction of the Company. Shenzhen Nanshan Power Environmental Protection Company hasmade every effort to promote the development of integrated energy management projects, form a diversified integrated energyservice portfolio, create photovoltaic, energy storage, and charging pile benchmark demonstration projects, while optimize andimprove the project management process standardization system, forming a replicable and promotable operation mechanism andprofit model, and comprehensively improving the standardization and efficiency of project full-cycle management. ShenzhenNanshan Power Engineering Company actively explores new projects at home and abroad, speeds up the pace of market-orientedreform, and uses project experience to form a replicable market-oriented project expansion operation and maintenance model. Atthe same time, relying on the advantages of gas turbine service field, it actively explores the feasibility of expanding to the newenergy field. Xiefu Company continues to promote the property lease management service business of Energy Corporation,strengthens the comprehensive service level, strives to improve the property rental rate, and improves the operating efficiency.
(2) Make every effort to revitalize assets in stock and realize optimal allocation and value-added of resources. First,comprehensively coordinate key businesses such as power production operation, fuel supply, and cost control, build an efficientoperation mechanism, optimize gas-electricity matching, and actively participate in various power market transactions on the basisof fully controlling transaction risks. Simultaneously, continuously deepen the work of reducing costs and increasing efficiency,and enhance the level of equipment management. While earnestly fulfilling the social responsibilities of ensuring power supply,steadily enhance the profitability of the power business to achieve a win-win situation between economic benefits and socialbenefits. Secondly, further strengthen market awareness, fully expand and maintain power sales channels, and improve theCompany's market competitiveness and bargaining power. At the same time, focus on strengthening the construction ofemployees' professional capabilities, conduct in-depth research on relevant policies, actively explore the policy orientation andmarket mechanisms for new energy assets to participate in electricity market transactions, and improve the return on investment ofassets. Third, continuously and deeply promote the follow-up work of the land acquisition and storage and the asset disposal work
of Shenzhen Nanshan Power Zhongshan Company. Make every effort to ensure the successful completion of key tasks such as thedismantling of unit equipment, soil assessment, and plot handover, and simultaneously properly dispose of the relevant assets.
(3) Resolutely build a solid safety defense line to ensure the work safety and stable operation of the Company. Focus onstrengthening the overall planning and overall deployment of work safety, improve the safety management system throughsystematic risk assessment and precise control, strengthen the investigation and governance of hidden dangers, improve theemergency response capacity, and ensure the steady progress of the Company's various businesses. First, continuously promote theconstruction of the safety management system for new businesses and new business form, comprehensively improve the worksafety responsibility system, actively learn from and draw on the advanced management methods within the industry, optimizesafety standards and specifications, etc., and take multiple measures simultaneously to continuously enhance the safetymanagement level. Second, strengthen the safety management of construction in progress, focus on key areas, keep an eye on keylinks, check weak parts, continuously improve the safety risk prevention and control capabilities, and make every effort to ensurethe safe and orderly progress of construction in progress. Third, comprehensively optimize the safety management assessment andevaluation system, strengthen the construction of safety culture, and actively build a new pattern of work safety of the Company.
(4) Continue to improve the modern enterprise system and comprehensively enhance the ability to create value. First, continuouslyimprove the Company's governance level. In accordance with the requirements of the latest regulatory policies, optimize theinstitutional system of corporate governance to ensure a reasonable corporate governance structure and standardized decision-making procedures. At the same time, continue to improve the quality of investor relations management and enhance investorconfidence. Second, continuously improve the level of standardized management, comprehensively complete the construction ofthe Company's process standardized management system, streamline business processes, optimize chain collaboration, and achievecomprehensive coverage and effective connection of business in all fields. Third, continuously improve the level of financialservices, use financial information systems to improve the quality of financial information, continuously optimize comprehensivebudget, financial analysis and capital management, explore more efficient financial management and control models, and promotethe organic integration of finance and business. Fourth, continuously improve the level of risk prevention, strengthen internalsupervision and risk control compliance management, deepen compliance management construction, strengthen risk identificationand control in new business areas, and ensure the stable operation of the Company.
(5) Deeply promote the reform of incentive mechanism to enhance internal vitality and motivation. First, comprehensively build adifferentiated performance appraisal system, continuously improve the salary incentive mechanism, establish an incremental salaryincentive mechanism, fully stimulate the enthusiasm and creativity of employees, and improve the overall operation efficiency ofthe enterprise. Second, promote the establishment of a reserve talent pool, establish a young talent cultivation system, and cultivatea reserve cadre team that meets the development needs of the Company's new business and new business forms in a systematic andscientific manner. Third, actively build an internal personnel flow mechanism, implement the model of personnel secondment andexchange, realize the efficient and flexible allocation of the Company's existing human resources, and improve organizationalefficiency. Fourth, vigorously promote the leadership responsibility system. The Company's leaders personally shall take the leadto go deep into the front-line management of the key businesses of subordinate enterprises, coordinate internal and externalresources according to the actual needs and existing problems of subordinate enterprises, provide accurate support, promote therapid development of subordinate enterprises, and promote the coordinated improvement of the overall business.
(6) Adhere to the leading direction of party building and comprehensively consolidate the foundation of high-quality development.First, unremittingly grasp the theoretical armament, insist on enriching the mind with the party's theory, guide practice andpromote work. Second, continue to build a "1+2+3+N" working system, deepen the "Party building +" model, give full play to thevanguard and exemplary role of Party members, and promote business development to make new breakthroughs under theleadership of Party building. Third, adhere to the comprehensive governance of the Party, carry out regular study and education ofParty discipline, deeply rectify formalism and bureaucracy to reduce the burden on the grassroots, actively solve the problems
existing in the development and form a long-term mechanism, and continue to empower and increase efficiency for corporategovernance and transformation development. Fourth, strengthen the construction of the Party's work style, integrity, and anti-corruption efforts, enhance the supervisory responsibilities, enforce discipline and accountability, explore the application mode ofthe fault-tolerance mechanism, and create a clean and upright environment for business and undertakings. Fifth, continue toenhance the "soft power" of corporate culture, promote the deep integration of corporate culture and production and operationthrough party building, and pool the strength for development.The business plan and related situation analysis described in this annual report do not constitute the Company'scommitment to investors. The Company reminds investors to maintain due risk awareness, understand the differencesbetween the business plan and actual operating conditions, and make prudent decisions of investment.
3. Potential major risks and countermeasures
(1) Primary business: in 2025, due to multiple factors, the Company's power plants will face great pressure from the continuoushigh fuel price and the backward energy efficiency of the unit. The 9E unit will have difficulty in making profits under thepressure of competition with more efficient and lower cost unit, and the operation situation of the Company's main business willbe even more severe. The Company will persist in enhancing the operation and management of assets in stocks, proactivelyadapting to the demands and dynamics of the power market, and striving to optimize the profitability of its primary business andoverall operational efficiency. At the same time, the Company will focus on integrated energy service, actively explore diversifiedbusiness models, seize the opportunity to transform from a traditional power generation company to an integrated energy serviceprovider, and create better conditions for the Company's continued operation and healthy development.
(2) In terms of safety management: with the diversified development of the Company's business, safety risks are intertwined andsuperimposed. Therefore, the Company has further strengthened the overall planning and overall deployment of safetymanagement. According to the risk characteristics and work requirements of each business segment, for prominent problems anddifficulties, it has deeply analyzed the root causes, organized consultation and judgment, formulated practical solutions, andcarried out systematic deployment to ensure that the safety management meets the needs of business development and effectivelyprevents various safety risks. With the advancement of power market-oriented reform, power plants will face more flexibledispatching methods and stricter assessment policies, which puts forward higher requirements for the operation and maintenanceof the existing aging power generation equipment. The Company will continuously improve the maintenance and managementlevel of equipment by formulating scientific and reasonable maintenance and technical transformation plans, investingcorresponding funds and technical forces, implementing primary responsibility for work safety, and ensuring the safe and stableoperation of production facilities; Simultaneously, the Company will enhance training and emergency preparedness, ensuring theimplementation of work safety responsibilities across five key areas: responsibility of work safety, management, investment,training, and emergency response. Doing so aims to prevent any human-induced work safety accidents within the Company'ssystem while maintaining the supporting role of the main peak-shaving power supply point.
(3) Fuel procurement: In 2025, the Company's natural gas purchase price will mainly depend on changes in the international fuelmarket and the sales prices set by the Company's existing suppliers. Under the background of slow global economic recovery andthe premise that there is no fierce geopolitical conflict for the time being, the international energy price level is expected tomaintain the current level or even continue to decline in 2025. Affected by this, the Company's natural gas procurement cost isexpected to continue to decrease slightly in 2025 compared with 2024, but the overall price level is still high. In addition, theCompany has transform from dual gas sources to a single gas source pattern, which has a negative impact on the stability of gassupply, the flexibility of gas volume coordination and the economy of gas price. At the same time, with the continuousimplementation of electricity spot trading rules and capacity price policies, as well as the successive commissioning of powersupply points around Shenzhen, higher requirements have been put forward for the stability and flexibility of natural gas supply.
The Company will continue to optimize upstream cooperation relationships, coordinate gas supply work under a single gas source,and do its best to minimize natural gas procurement costs while ensuring gas demand for power production.
(4) Land of Nanshan Power Plant: at the end of 2024, the Company again accessed the Notice of Shenzhen Municipal Bureau ofPlanning and Natural Resources on Issuing the Shenzhen Land Consolidation Plan for 2024 on the official website of ShenzhenMunicipal Bureau of Planning and Natural Resources. According to its attached table, Shenzhen Land Consolidation Plan for 2024still included the land acquisition and storage of Nanshan Power Plant and related content, with no substantial change from thecontent of the land consolidation plans disclosed in recent years. The Company will maintain close communication with relevantdepartments of Shenzhen, actively follow up on the implementation progress of relevant government plans, and work with legaladvisors to carefully study Land of Nanshan Power Plant, study and formulate response strategies and work plans, and make everyeffort to protect the listed company and all the legitimate rights and interests of shareholders.The Company advises investors to take note of the aforementioned major risks as well as other potential risks that mayaffect the Company, and to make prudent and informed investment decisions accordingly.XII. Reception of visitors intended for research, communication, interviews and otheractivities during the reporting period?Applicable □Not applicable
| Reception date | Reception location | Means of reception | Visitor type | Visitor | Main content discussed and information provided | Basic information index of the survey |
| April 29, 2024 | Value online platform | Online communication on the network platform | Individuals, institutions | 15 | Inquire about the Company's performance, market performance, future development direction, progress of the Company's investment matters and land-related matters, etc. | The Company offers prompt response in writing. |
| January - December 2024 | Headquarters office area of the Company | Field research | Individuals | 17 | Participate in General Meetings, receive visits from individual investors, etc. | The Company welcomes visitors in accordance with laws and regulations |
| January - December 2024 | irm.cninfo network | Written Inquiry | Individuals | 74 | Inquire about the Company's future development direction, the updates of the Company's investment matters and land-related matters, etc. | The Company offers prompt response in writing. |
| January - December 2024 | Telephone communication | Telephone communication | Individuals | 70 | Inquire about the Company's performance, market | The Company responded in accordance with the law |
performance, land-related matters, andthe update of theCompany'sinvestment matters,etc.
XIII. Formulation and implementation of market value management system and valuationimprovement planWhether the Company has formulated a market value management system.
□Yes ?No
Whether the Company has disclosed plans for valuation enhancement.
□Yes ?No
XIV. Implementation of the action plan of "Double Improvement of Quality Return"
Whether the company has disclosed the announcement of the action plan of "Double Improvement of Quality and Return".
□Yes ?No
Section IV Corporate governanceI. Basic situation of corporate governanceDuring the reporting period, the Company continued to enhance its corporate governance structure and improve the moderncorporate governance structure in accordance with the relevant laws, regulations, normative documents such as the Company Law,Securities Law, Code of Governance of Listed Companies, Stock Listing Rules, and the Company's Articles of Association. TheCompany improved the level of standardized governance and refined management, and effectively protected the legitimate rightsand interests of listed companies, investors and employees.
1. General Meeting: The Company convened General Meetings in strict accordance with legal procedures to ensure thatshareholders exercise their rights in accordance with the law. During the reporting period, the Company held a regular and fiveextraordinary general meetings to carefully study and review on major matters requiring decision-making by the shareholders'meeting. The convening and calling procedures of the Company's General Meetings, the attendees and the subject qualifications ofthe convener, voting procedures and voting results were all in compliance with the Company Law, Securities Law, Rules forGeneral Meetings of Listed Companies and other laws, regulations, normative documents and relevant provisions of theCompany's Articles of Association. The Company had neither major shareholder nor related parties involved in the appropriationor transfer of the Company's funds, assets and other resources in any form.
2. Board of Directors: The Board of Directors of the Company adheres to standardized operation and management,implementing various measures to enhance its own development, and elevate the standardization and scientific decision-makingcapabilities of the Board. During the reporting period, Board of Directors of the Company held 3 regular and 9 extraordinarymeetings to meticulously deliberate and review major matters within its scope of authority. The four special committees under theBoard of Directors, namely the Strategy and Investment Management Committee, the Audit Committee, the NominationCommittee, and the Remuneration and Appraisal Committee, meticulously deliberate and review relevant matters according totheir respective responsibilities. They provided opinions and suggestions to fully leverage the role of each committee in addressingmajor issues. These committees actively contributed to investment decision-making, key personnel adjustments, standardizedmanagement, internal auditing, and risk control, ensuring the scientific nature of the company's decision-making processes andmanagement standardization.
3. Board of Supervisors: The Company's Board of Supervisors conscientiously performs its supervisory duties in accordancewith relevant laws and regulations, demonstrating a responsible attitude toward the Company and shareholders. During thereporting period, the Company's Board of Supervisors held 3 regular meetings and 7 extraordinary meetings to supervise andinspect important matters such as the Company's financial position, major decision-making matters, internal control, andstandardized management, and expressed opinions. At the same time, the Board of Supervisors also performed its supervisoryduties by attending General Meetings and the meetings of Board of Directors and organizing on-site inspections of the Company'ssubsidiaries to gain an in-depth understanding of the Company's operations and management.
4. Managers: During the reporting period, the Company's managers strictly followed relevant laws and regulations and therequirements of the Company's Articles of Association, conscientiously implemented the decisions of the General Meeting andBoard of Directors, actively organized and carried out the Company's production, operation and management activities. Theyconsistently refined the office meeting system and internal control system, consistently optimized work processes and decision-making procedures, followed the working principles of reasonable division of labor, enhanced cooperation and the purpose ofcollective decision-making on major matters, continuously improved the Company's management level, striving to achieve annualoperating goals.
5. Information disclosure and investor relations management: Board of Directors of the Company strictly complies with therequirements of the Measures for the Administration of Information Disclosure of Listed Companies, the Stock Listing Rules andother regulations and normative documents, and conscientiously performs its information disclosure obligations. During thereporting period, the Company completed the preparation and disclosure of regular reports and interim reports in accordance withlaws and regulations, and disclosed a total of 110 announcement documents throughout the year, striving to allow investors tofully understand the Company's production and operation management and major events. The Company rigorously adheres tostipulations outlined in normative documents such as the Guidelines for the Management of Investor Relations of ListedCompanies and the Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operationsof Main Board Listed Companies to effectively manage investor relations. The Company has facilitated investor engagementthrough on-site visits, email correspondence, investor hotlines, the Shenzhen Stock Exchange's interactive platform, and othercommunication channels, so as to enhance investors' understanding of the Company.
6. Insider information management: The Company strictly follows the requirements of regulations and normative documentssuch as the Information Disclosure Management Measures for Listed Companies and the Guidelines for the Supervision of ListedCompanies No. 5 - Registration and Management System for Insiders of Listed Companies' Insider Information, standardizes theCompany's insider information management, and conscientiously submits memoranda on updates of major event and insiderinformation files in accordance with relevant regulations. During the reporting period, the Company did not have any insideinformation leakage.
7. Internal control and standardized management: During the reporting period, the Company attaches great importance to theconstruction of internal control, solidly carries out internal control self-evaluation and internal audit work, comprehensivelyevaluates the effectiveness of internal control and accurately identifies potential risk points through scientific and rigorousprocesses, so as to ensure the continuous optimization and improvement of the internal control system. At the same time, theCompany vigorously carries out the construction of compliance system, effectively improves the overall standardised managementlevel of the Company, and builds a solid line of defence for the prevention of operation and management risks.Whether the Company's actual situation of corporate governance is significantly different from the laws, administrative regulationsand the provisions on listed company governance issued by CSRC
□Yes ?No
There is no significant difference between the actual situation of the Company's corporate governance and the laws, administrativeregulations and regulations on the governance of listed companies issued by the CSRC.II. The Company's independent possession of assets, personnel, finance, organization, andbusiness, etc. from its controlling shareholders and actual controllers.The Company has no controlling shareholder. The Company is completely independent of its major shareholders in terms ofpersonnel, assets, finance, business, and institutions, and has the ability to make independent decisions and operate effectively.
1. Personnel independence: The Company has an independent human resources management system, salary and welfare system;All senior officers of the Company are full-time managers of the Company and do not hold other administrative positions otherthan directors and supervisors in shareholder entities; The Company recruits and fires employees on its own within the scopeapproved by Board of Directors and based on operational and management needs. The Company has established a comprehensivehuman resources management system and has independent management rights.
2. Asset independence: The Company has independent production facilities and auxiliary systems, land use right and housingproperty rights, office facilities and equipment. Within the scope of authorization by the General Meeting and Board of Directors,it has the power to independently purchase and dispose of assets.
3. Financial independence: the Company has an independent Financial Management Department and accounting system, hasequipped with independent financial management and accounting personnel, has established a more complete financialmanagement system, and has independent bank accounts and tax accounts. The Company has independent financial decision-making power within the scope authorized by the General Meeting and the Board of Directors, and there is no situation in whichmajor shareholders interfere with financial management or misappropriation of funds, etc.
4. Business independence: the Company independently carries out production and operating activities, and has establishedindependent and complete production, procurement and sales channels and management system. Within the scope authorized bythe General Meeting and the Board of Directors, the Company operates independently, manages itself and is responsible for itsown profit or loss.
5. Institutional independence: based on the needs of production, operation, and management, the Company has established amore perfect organizational structure and management structure in accordance with modern enterprise management standards.There is no situation in which shareholders interfere with the establishment and operation of the Company's institutions, and thereis no situation in which they share the organizational structure with shareholders.III. Horizontal competition
□Applicable ?Not applicable
IV. Relevant information on the Annual General Meeting and Extraordinary GeneralMeeting held during the reporting period
1. Information on the General Meeting during the reporting period
| Session | Type | Investor participation ratio | Convening date | Disclosure date | Resolution |
| The 1st Extraordinary General Meeting in 2024 | Extraordinary General Meeting | 38.31% | January 9, 2024 | January 9, 2024 | Reviewed and approved the Proposal on Amending the Articles of Association of Shenzhen Nanshan Power Co., Ltd., the Proposal on Amending the Rules of Procedure of the Board of Directors of Shenzhen Nanshan Power Co., Ltd., and the Proposal on Amending the Working System for Independent Directors of Shenzhen Nanshan Power Co., Ltd. |
| The 2nd Extraordinary General Meeting in 2024 | Extraordinary General Meeting | 38.32% | February 26, 2024 | February 26, 2024 | Reviewed and approved the Proposal on Listing and Transfer of the Assets Related to the Generating Units and Heavy Oil Processing Line of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd., a Held Subsidiary of the Company |
| 2023 Annual General Meeting | Annual General Meeting | 38.34% | May 8, 2024 | May 8, 2024 | Reviewed and approved seven proposals, including the 2023 Report on the Work of the Board of Directors and the 2023 Report on the Work of the Board of Supervisors |
| The 3rd | Extraordinar | 38.33% | June 20, 2024 | June 20, 2024 | Reviewed and approved the Proposal on the |
| Extraordinary General Meeting in 2024 | y General Meeting | Renewal of the Board of Directors and the Election of Non-independent Directors of the Tenth Board of Directors, the Proposal on the Renewal of the Board of Directors and the Election of Independent Directors of the Tenth Board of Directors, the Proposal on the Renewal of the Board of Supervisors and the Election of Non-employee Representative Supervisor of the Tenth Board of Supervisors, and the Proposal on Re-listing and Transferring the Generating Unit and Heavy Oil Treatment Line Related Assets of the Company's Held Subsidiary Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. | |||
| The 4th Extraordinary General Meeting in 2024 | Extraordinary General Meeting | 38.62% | December 12, 2024 | December 12, 2024 | Reviewed and approved the Proposal on Formulating the Management System for the Selection of Accounting Firm and the Proposal on the Engagement of the Auditor in 2024 and Determination of Remuneration |
| The 5th Extraordinary General Meeting in 2024 | Extraordinary General Meeting | 38.75% | December 23, 2024 | December 23, 2024 | Reviewed and approved the Proposal on Re-listing and Transfer of the Relevant Assets of the Generating Units of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd., a Held Subsidiary of the Company |
2. Preferred shareholders whose voting rights have been restored request the convening of anExtraordinary General Meeting of Shareholders
□Applicable ? Not applicable
V. Directors, supervisors and senior officersI. Basic information
| Name | Gender | Age | Position | Incumbency status | Commencement of term | Expiration of term | Number of shares held at the beginning of the period (shares) | Number of shares increased in the current period (shares) | Number of shares reduced in the current period (shares) | Other increases/decreases (shares) | Number of shares held at the end of the period (shares) | Reasons for increase or decrease in shares |
| Kong Guoliang | Male | 41 | Chairman | Incumbent | September 13, 2022 | June 19, 2027 | 0 | 0 | 0 | 0 | 0 | |
| Hu Ming | Male | 54 | Vice Chairman | Incumbent | September 13, 2021 | June 19, 2027 | 0 | 0 | 0 | 0 | 0 | |
| Huang Qing | Male | 53 | Director | Incumbent | June 3, 2019 | June 19, | 0 | 0 | 0 | 0 | 0 |
| 2027 | ||||||||||||
| Chen Yuhui | Male | 59 | Director | Incumbent | August 28, 2017 | June 19, 2027 | 0 | 0 | 0 | 0 | 0 | |
| General Manager | Incumbent | August 11, 2017 | June 19, 2027 | |||||||||
| Chen Yedong | Male | 51 | Director | Incumbent | June 20, 2024 | June 19, 2027 | 0 | 0 | 0 | 0 | 0 | |
| Wu Guowen | Male | 59 | Director | Incumbent | April 25, 2016 | June 19, 2027 | 0 | 0 | 0 | 0 | 0 | |
| Executive Deputy General Manager | Incumbent | April 1, 2016 | June 19, 2027 | |||||||||
| Huang Xiqin | Female | 53 | Independent director | Incumbent | August 2, 2022 | June 19, 2027 | 0 | 0 | 0 | 0 | 0 | |
| Du Wei | Male | 69 | Independent director | Incumbent | November 11, 2019 | June 19, 2027 | 0 | 0 | 0 | 0 | 0 | |
| Ning Jie | Male | 41 | Independent director | Incumbent | June 20, 2024 | June 19, 2027 | 0 | 0 | 0 | 0 | 0 | |
| Zhai Baojun | Male | 53 | Chairman of the Board of Supervisors | Incumbent | March 23, 2023 | June 19, 2027 | 0 | 0 | 0 | 0 | 0 | |
| Zhang Ming | Male | 36 | Supervisor | Incumbent | June 20, 2024 | June 19, 2027 | 0 | 0 | 0 | 0 | 0 | |
| Yu Haiyong | Male | 42 | Supervisor | Incumbent | June 20, 2024 | June 19, 2027 | 0 | 0 | 0 | 0 | 0 | |
| Qian Wenhui | Male | 56 | Employee representative supervisor | Incumbent | April 26, 2021 | June 19, 2027 | 0 | 0 | 0 | 0 | 0 | |
| Lu Yindi | Female | 42 | Employee representative | Incumbent | April 26, 2021 | June 19, 2027 | 0 | 0 | 0 | 0 | 0 |
| supervisor | ||||||||||||
| Li Chao | Male | 53 | Deputy General Manager | Incumbent | September 18, 2023 | June 19, 2027 | 0 | 0 | 0 | 0 | 0 | |
| Tao Lin | Male | 57 | Deputy General Manager | Incumbent | September 18, 2023 | June 19, 2027 | 0 | 0 | 0 | 0 | 0 | |
| Zhang Xiaoyin | Male | 37 | Chief Financial Officer | Incumbent | June 13, 2022 | June 19, 2027 | 0 | 0 | 0 | 0 | 0 | |
| Zou Yi | Male | 51 | Secretary of the Board of Directors | Incumbent | April 26, 2021 | June 19, 2027 | 0 | 0 | 0 | 0 | 0 | |
| Sun Huirong | Male | 41 | Director | Resigned | April 26, 2021 | June 20, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Chen Zetong | Male | 54 | Independent director | Resigned | November 17, 2017 | June 20, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Li Caijun | Male | 46 | Supervisor | Resigned | April 26, 2021 | June 20, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Liao Junkai | Male | 36 | Supervisor | Resigned | June 3, 2019 | June 20, 2024 | 0 | 0 | 0 | 0 | 0 |
Whether there was any departure of directors and supervisors and dismissal of senior officers during their term of office during thereporting period
□Yes ?No
Changes in directors, supervisors and senior officers of the Company?Applicable □Not applicable
| Name | Position held | Type | Date | Reason |
| Chen Yedong | Director | Elected | June 20, 2024 | |
| Ning Jie | Independent director | Elected | June 20, 2024 | |
| Zhang Ming | Supervisor | Elected | June 20, 2024 | |
| Yu Haiyong | Supervisor | Elected | June 20, 2024 | |
| Sun Huirong | Director | Resignation upon expiration of term | June 20, 2024 | |
| Chen Zetong | Independent director | Resignation upon expiration of term | June 20, 2024 | |
| Li Caijun | Supervisor | Resignation upon expiration of term | June 20, 2024 |
| Liao Junkai | Supervisor | Resignation upon expiration of term | June 20, 2024 |
2. Position
The professional background and main work experience of the Company's incumbent directors, supervisors and senior officers, aswell as their main responsibilities currently
(1) Members of the Board of Directors
Mr. Kong Guoliang: Born in 1983, he is a member of the CPC, with a master's degree in Finance from Central University ofFinance and Economics. He is a Certified Public Accountant and Economist. He has successively served as Warrant ServicesManager and Securities Representative of Shenzhen Zhenye (Group) Co., Ltd., Senior Manager and Deputy Minister of theInvestment Department of Shenzhen Yuanzhi Investment Co., Ltd., Minister of Capital Operations Department, Minister ofInvestment and Development II, Minister (Director) of the Department of Strategic Studies (Office of the Board of Directors) andSecretary of the Board of Directors of Shenzhen Capital Holdings Co., Ltd., a director of Shenzhen Zhenye (Group) Co., Ltd., adirector of China International Marine Containers (Group) Co., Ltd., General Manager of Shenzhen Pingwen DevelopmentInvestment Co., Ltd., and Chairman of Shenzhen Yuanzhi Culture Holding Co., Ltd. Currently, he is the Chairman of ShenzhenEnergy Corporation, the director of Shenzhen Energy (Hong Kong) International Limited, and the director of HONG KONGNAM HOI (INTERNATIONAL) LTD. From September 2022 to the present, he has served as the Chairman of the Company, andfrom November 2022 to the present, he has served as the Secretary of the Party Committee of the Company.Mr. Hu Ming: Born in 1970, he is a member of China Democratic National Construction Association, with a master's degree. Heis a Senior Engineer. From March 2003 to December 2019, he served in government-related agencies such as Nanshan DistrictHousing and Construction Bureau, Audit Bureau, etc.; From January 2020 to August 2021, he served as the Director and GeneralManager of Shenzhen Dashahe Construction Investment Co., Ltd. and the Director and General Manager of Shenzhen NanshanAnju Construction Development Co., Ltd.; from August 2021 to present, he has served as the Director and General Manager ofShenzhen Guangju Energy Co., Ltd., and from September 2021 to present, he has served as the Vice Chairman of the Company.Mr. Huang Qing: Born in 1971, he is a member of the CPC. He is an Economist with a master's degree in economics, andgraduated from Wuhan University majoring in National Economic Planning and Management. He has successively served asDeputy Director and Director of the General Office of Shenzhen Municipal Government, Secretary of the General Offices ofHunan Provincial Government and Shanxi Provincial Government, Deputy Director of the Guangzhou Office of Shanxi ProvincialGovernment and member of the Party Leading Group, etc. He is currently the Deputy General Manager of Shenzhen CapitalHoldings Co., Ltd., and concurrently serves as the Chairman of Shenzhen Yixin Investment Co., Ltd., the Chairman of ShenzhenYuanzhi Ruixin Equity Management Co., Ltd., the Chairman of Shenzhen Huijin Intelligent Industry Co., Ltd., the Director ofShenzhen Energy Corporation, the Director of Shenzhen Water and Environment Investment Group Co., Ltd., the Director ofShenzhen High-tech Investment Group Co., Ltd., the Director of Shenzhen Institute of Building Research Co., Ltd., the Director ofChina Resources SZITIC Investment Co., Ltd., the Director of Shenzhen Enterprise Service Group Co., Ltd., the Director ofShenzhen Capital International Co., Ltd., and the Director of Shenzhen Capital (Hong Kong) Container Investment Co., Ltd.;From June 2019 to present, he has served as a director of the Company.Mr. Chen Yuhui: Born in 1965, he is a member of the CPC. He is a Senior Engineer, graduated from Shanghai JiaotongUniversity, and has obtained a bachelor's degree in ship power and a master's degree in vibration, impact and noise. In 1989, heworked in the Maintenance Department of Shenyang Liming Gas Turbine Co., Ltd.; From December 1989 to June 2006, heworked at the Yueliangwan Power Plant of Shenzhen Energy Corporation, where he served as the Duty Officer of the OperationDepartment, a Specialist in the Chief Engineer's Office, Deputy Director of the Maintenance Department, Deputy Plant Director,Plant Director, etc; From June 2006 to July 2014, he worked at the Eastern Power Plant of Shenzhen Energy Corporation, where
he served as Deputy General Manager and Operations Director; From July 2014 to August 2017, he served as Chairman, GeneralManager and Party Branch Secretary of Zuhai Shenzhen Energy Hongwan Power Co., Ltd.; From August 2017 to present, he hasserved as the director and General Manager of the Company, and from May 2019 to present, he has served as Deputy Secretary ofthe Party Committee of the Company.Mr. Chen Yedong: Born in 1973, he is a member of the CPC and has a master's degree. He holds a bachelor's degree ineconomics from Dongbei University of Finance and Economics and a master's degree in business administration from ZhongnanUniversity of Economics and Law. He has served as Senior Manager and Deputy Director of the Strategy Research Department,Director of the Asset Management Department and Director of the Risk Control Department of Shenzhen Capital Holdings Co.,Ltd., Chairman of the Board of Supervisors and Secretary of the Party Committee of Shenzhen Clou Electronics Co., Ltd. SinceJune 2023, he has served as the Deputy Secretary of the Party Committee of the Company, and since November 2023, he hasserved as the Director of Shenzhen Nanshan Power Gas Turbine Engineering Technology (Shenzhen) Co., Ltd. From June 2024 topresent, he has served as a Director of the Company.Mr. Wu Guowen: Born in 1965, he holds a bachelor's degree. From January 1994 to December 2007, he worked in ShenzhenGuangju Energy Co., Ltd. From January 2008 to November 2010, he worked in Shenzhen Yisheng Liquid Warehousing Co., Ltd.as Deputy General Manager; From December 2010 to March 2016, he worked in Shenzhen Guangju Real Estate Co., Ltd., andserved successively as Executive Deputy General Manager, legal representative, executive director, and General Manager; FromAugust 2013 to March 2018, he served as employee supervisor of Shenzhen Guangju Energy Co., Ltd.; From March 2018 toSeptember 2021, he also served as the Chairman of Shenzhen Xiefu Energy Co., Ltd.; Since January 2022, he has also served as adirector of Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd.; From April 2016 to present, he has served as adirector and Executive Deputy General Manager of the Company.Ms. Huang Xiqin: Born in 1971, she holds a bachelor's degree in law, a master's degree in economics from the Party School ofthe Central Committee of the CPC, and a master's degree in Business Administration (EMBA) from the Guanghua School ofManagement at Peking University. She started working in September 1992. From September 1992 to May 1998, she served asAppraiser, Manager, etc. of Shenzhen International Real Estate Consulting Co., Ltd.; From November 2001 to January 2025, heserved as the Chairman of Guozhonglian Assets Evaluation Lands&Real Estate Evaluation Consulting Co.,Ltd. Since January2025, he has served as the director of Guangdong Guozhonglian Assets Evaluation Lands&Real Estate Evaluation ConsultingCo.,Ltd.; From May 1998 to date, she has served as executive director of Guozhonglian Asset Appraisal Land and Real EstateValuation Co., Ltd.; From December 2000 to date, he has served as Chairman of Guozhonglian Construction EngineeringManagement Consulting Co., Ltd.; From February 2015 to date, she has served as a director of Beijing Guozhonglian Auction Co.,Ltd.; Since January 2021, he has served as the supervisor of Guangdong Guozhonglian Construction Engineering Co., Ltd.; FromJanuary 2022 to present, she has also served as an External director of Guangdong Construction Engineering Group Co., Ltd. Shehas served as an independent director of the Company since August 2022.Mr. Du Wei: Born in 1955, he is a member of the CPC, Senior Engineer, with a doctorate degree, graduated from the Institute ofPlasma Physics Chinese Academy of Sciences, majoring in Nuclear Fusion and Plasma Physics. He has served as a Cadre of theNational Energy Commission, Assistant Engineer and Chief Clerk of Yangtze River Basin Planning Office, Engineer and DeputyDepartment Manager of China Nanshan Development Co., Ltd., Deputy General Manager and General Manager of ShenzhenChangjiang Computer Industry Co., Ltd., Deputy Minister (Deputy Division Director) and Minister (Division Director) of theEvaluation and Recommendation Center for Senior Managers of the Organization Department of Shenzhen Municipal PartyCommittee, Deputy General Manager of Shenzhen Expressway Development Co., Ltd., Chairman of Shenzhen InternationalWestern Logistics Co., Ltd., General Manager of Shenzhen International Qianhai Industrial (Shenzhen) Co., Ltd., He serves asSenior Consultant of Shenzhen International Commercial Property Management Co., Ltd.; Executive Director and General
Manager of Shenzhen Tianyu Freight Forwarder Co. , Ltd. Currently, he is the executive director and General Manager ofShenzhen Borun Investment Co., Ltd. He has served as an independent director of the Company from November 2019 to present.Mr. Ning Jie: Born in 1983, he is a member of the CPC, holding a Bachelor of Laws and a Bachelor of Management from theLaw School of Southwest University of Political Science and Law. From September 2005 to July 2008, he served in ShenzhenIntermediate People's Court; from July 2008 to December 2008, he worked in Beijing Zhonglun (Shenzhen) Law Firm; fromDecember 2008 to February 2012, he served as the Manager of the legal department of Shenzhen Merchants Property ConsultantsCo., Ltd.; from February 2012 to February 2015, he worked at Shanghai Jintiancheng (Shenzhen) Law Firm; from September 2020to February 2024, he served as the Executive Director of Peterson International Limited; from January 2022 to August 2023, heserved as an independent director of Min Fu International Holding Co., Ltd.; since February 2015, he has served as a seniorpartner of Guangdong Ganglian Law Firm. Served as an independent director of the Company since June 2024.
(2) Members of the Board of Supervisors
Mr. Zhai Baojun: Born in August 1971, he is a member of the CPC with a bachelor's degree. From May 1993 to August 2001, heserved as the Manager of Sales Department of Zhaobao Real Estate Company in Baoan District, Shenzhen; From August 2001 toNovember 2013, he worked at Shenzhen Guangju Energy Co., Ltd., where he served successively as Secretary of the YouthLeague Committee, Armed Officer, Office Director, Director of the Party Office, and Vice Chairman of the Trade Union of theCompany; From December 2013 to April 2015, he served as Deputy General Manager of Shenzhen Guangju Yida HazardousChemicals Storage Co., Ltd.; From May 2015 to April 2020, he served as Deputy General Manager of Shenzhen Xiefu Energy Co.,Ltd.; From May 2020 to March 2023, he served as the acting General Manager of Shenzhen Xiefu Energy Co., Ltd. Since March2023, he has served as the Chairman of the Board of Supervisors of the Company, and since March 2024, he has served as theSecretary of the Disciplinary Committee of the Company.Mr. Zhang Ming: Born in 1988, he is a member of the CPC, graduated from Harbin Engineering University with a major inManagement Science and Engineering, holding a master's degree in management. He used to be a transfer student of theOrganization Department of the Heilongjiang Provincial Party Committee, the head of the Factor Market Research Center ofShenzhen Huajing Management Consulting Co., Ltd., and the Manager of the Strategic Research Department, the Manager of theCapital Operation Department, and the Senior Manager of the Asset Management Department of Shenzhen Capital Holdings Co.,Ltd. He is currently the Deputy Director of the Asset Management Department of Shenzhen Capital Holdings Co., Ltd., Ltd., adirector of Artron Art (Group) Co., Ltd., a director of Shenzhen Institute of Building Research Co., Ltd., a director of ShenzhenClou Electronics Co., Ltd., a supervisor of Shenzhen Water and Environment Investment Group Co., Ltd. , and General Managerof Shenzhen Energy Corporation He has served as the supervisor of the Company from June 2024 to present.Mr. Yu Haiyong: Born in 1982, he is a member of the CPC, graduated from the Law Department of Zhongnan University ofEconomics and Law, with a master's degree in Laws. He once served as a procurator of Nanshan District Procuratorate, the DeputyDirector of the Anti-Malfeasance and Infringement Bureau and Grade IV procurator of Nanshan District Procuratorate, Grade IVchief staff member of the Supervision Commission of Nanshan District Discipline Inspection Commission, Deputy Director of theSixth Discipline Inspection and Supervision Office, Deputy Director of the Third Discipline Inspection and Supervision Office,Grade I chief staff member, etc. Currently, he is the Deputy Director of the Discipline Inspection and Supervision Office (Board ofSupervisors Office) of Shenzhen Capital Holdings Co., Ltd., and the supervisor of Shenzhen Yuanzhi Energy Storage Private FundManagement Co., Ltd. He has served as the supervisor of the Company from June 2024 to present.Mr. Qian Wenhui: Born in 1968, he is an Accountant, with a bachelor's degree. He graduated from Changsha Normal Universityof Water Resources and Electric Engineering in 1990, majoring in Financial Accounting. From July to October 1990, he worked atYangluo Power Plant in Wuhan. From October 1990 to August 2003, he worked in the Finance Department the Company; FromAugust 2003 to October 2011, he served as Chief Financial Officer of Zhongshan Zhongfa Electric Power Co., Ltd.; From March
2014 to December 2016, he served as a supervisor of Zhongshan Shenzhong Real Estate Development Co., Ltd. and ZhongshanShenzhong Real Estate Investment and Property Co., Ltd.; From November 2010 to July 2024, he served as the director of theAudit and Risk Control Department of the Company; from May 2014 to October 2024, he served as the supervisor of ShenzhenXiefu Energy Co., Ltd. Since July 2024, he has served as the Director and Deputy General Manager of Shenzhen GuonengProperty Management Co., Ltd.; From April 2021 to present, he has served as employee representative supervisor of the Company.Ms. Lu Yindi: Born in 1982, she is a member of the CPC, graduated from the School of Management, Huazhong University ofScience & Technology with a major in management science and engineering, with a master's degree in management. In July 2008,she joined the Global Supply Chain Management Division of Foxconn Technology Group's iDSBG Business Group, where heserved successively as Deputy Section Chief, Section Chief and Specialist of the Supply Chain Management Division. She joinedthe Company in August 2018, and has successively served as Supervisor of Contracts and Bidding Management of the Safety andTechnology Department, Deputy Director of the Supply Department and Director of the Supply Department of Nanshan PowerPlant (a subsidiary of the Company), and Deputy Director of the Company's Fuel Management Department; From June 2021 topresent, she has served as the Director and Deputy Director of the Office of the Board of Directors of the Company. From April2021 to present, he has served as employee representative supervisor of the Company.
(3) Senior Officers
For information about Chen Yuhui, the General Manager, and Wu Guowen, the Executive Deputy General Manager, please referto the aforementioned directors' resumes.Mr. Li Chao: Born in 1971, graduated from the Department of Finance of Shanxi University of Finance and Economics, he hasobtained a master's degree in Business Administration of Macau University of Science and Technology, and he is a SeniorAccountant. He started working in July 1994 and has once served as Project Manager of the Audit Department of Shenzhen DahuaCertified Public Accountants, Finance Manager of Compaq Computer Technology (China) Co., Ltd., and Chief Financial Officerof China Electricity Finance (Hong Kong) Limited; He joined Shenzhen Nanshan Power Co., Ltd. in February 2001, and he servedsuccessively as Assistant Minister, Minister, Deputy Chief Economist, Manager, and Assistant to the General Manager of theCorporate Development Department of the Company. He has served as the Deputy General Manager of the Company sinceSeptember 2023, and is currently the Chairman of the Board of Directors of Shenzhen Nanshan Power (Zhongshan) Power Co.,Ltd. and Shenzhen Xiefu Energy Co., Ltd.Mr. Tao Lin: Born in 1967, he is an economist, graduated from Shanghai Jiao Tong University with a major in Power System andAutomation. He holds a master's degree in Business Administration from the School of Economics and Management of TsinghuaUniversity. He started working in July 1989, and has once served as Production Officer of the Youth League Committee of DalianElectric Power Bureau and the On-site Secretary of the Office of Shenzhen Huaneng Economic Development Company. InJanuary 1992, he joined Shenzhen Nanshan Power Co., Ltd., and served successively as Office Secretary, Director, Secretary ofthe Board of Directors, General Manager of Shenzhen Xiefu Oil Supply Co., Ltd., General Manager of Zhongshan Power Co., Ltd.and Zhongshan Zhongfa Power Co., Ltd., and Deputy Chief Economist of the Company, and Assistant to the General Manager. Hehas served as the Deputy General Manager of the Company since September 2023. He is currently the Vice Chairman of ShenzhenNanshan Power (Zhongshan) Power Co., Ltd. and the Executive Director of Shenzhen New Power Industrial Co., Ltd.Mr. Zhang Xiaoyin: Born in 1987, he is a member of the CPC. He is a senior accountant, with a bachelor's degree in economicsfrom Xiamen University, and a master's degree in business administration from Wuhan University. He also holds professionalqualifications such as Certified Public Accountant of China, Australian certified public accountant, Certified Tax Agent, AssetAppraiser, and Financial Risk Manager (FRM). He started working in October 2008, and has served as an Auditor of the FinancialServices Group of Shenzhen Branch of Ernst & Young Huaming Certified Public Accountants, a Financial Accountant of thePlanning and Finance Department of Wanlian Securities Co., Ltd., a Senior Manager of the Financial Management Department of
China Resources SZITIC Trust Co., Ltd. and Head of Accounting and supervisor of China Resources Energy Services CompanyLimited, and an Investment Director (Deputy Minister) of Yuanzhi Venture Capital (Investment Development Department II) ofShenzhen Capital Holdings Co., Ltd. From June 2022 to present, he has served as Chief Financial Officer of the Company.Mr. Zou Yi: Born in 1973, he is a member of the CPC, economist, with a master's degree in Economics from ZhongnanUniversity of Economics and Law. From July 1994 to September 2007, he worked at the Headquarters of Shenzhen EnergyCorporation, and served as Business Manager of the Finance Department, Deputy Director of the Business of the Capital Office,and Business Director of the Secretariat of the Board of Directors; From September 2007 to December 2017, he served as theMinister of Fund Department of Shenzhen Energy Finance Co., Ltd.; From December 2017 to July 2019, he served as DeputyGeneral Manager of Shenzhen Energy Finance Co., Ltd.; From August 2017 to November 2018, he also served as a director ofHuizhou SEC Fengda Electric Power Co., Ltd.; From August 2019 to April 2021, he served as the Director of the Office of theBoard of Directors of the Company, and from July 2020 to April 2021, he also served as the Director of the AdministrationDepartment of the Company. From April 2021 to the present, he has served as Secretary of the Board of Directors of the Company,and from December 2023 to the present, he has also served as the Director of the Office of the Board of Directors.Incumbency status in the shareholder entity?Applicable □Not applicable
| Name of incumbent | Entity name | Positions held in the shareholder entity | Commencement of term | Expiration of term | Whether to receive remuneration allowance in the shareholder entity |
| Kong Guoliang | Shenzhen Energy Corporation | Chairman | November 4, 2022 | No | |
| Huang Qing | Shenzhen Energy Corporation | Director | April 8, 2019 | No | |
| Kong Guoliang | HONG KONG NAM HOI (INTERNATIONAL) LTD | Director | September 9, 2022 | No | |
| Zhang Ming | Shenzhen Energy Corporation | General Manager | August 26, 2024 | No |
Incumbency status in other entities?Applicable □Not applicable
| Name of incumbent | Other entity name | Positions held in other entities | Commencement of term | Expiration of term | Whether to receive remuneration allowance in other entities |
| Kong Guoliang | Shenzhen Energy (Hong Kong) International Limited | Director | April 24, 2023 | No | |
| Hu Ming | Shenzhen Guangju Energy Co., Ltd. | Director | August 20, 2021 | Yes | |
| General Manager | August 4, 2021 | ||||
| Huang Qing | Shenzhen Capital Holdings Co., Ltd. | Deputy General Manager | September 1, 2016 | Yes | |
| Shenzhen Water and Environment Investment Group Co., Ltd. | Director | December 4, 2020 | No |
| Shenzhen High-tech Investment Group Co., Ltd. | Director | March 9, 2018 | No | ||
| Xiong'an Green Research Think Tank Co., Ltd. | Director | November 9, 2017 | December 9, 2024 | No | |
| Shenzhen Institute of Building Research Co., Ltd. | Director | January 31, 2018 | No | ||
| Shenzhen Yixin Investment Co., Ltd. | Chairman | October 10, 2022 | No | ||
| Resources SZITIC Investment Co., Ltd. | Director | April 23, 2021 | No | ||
| Shenzhen Enterprise Service Group Co., Ltd. | Director | April 28, 2021 | No | ||
| Shenzhen Capital International Co., Ltd. | Director | June 22, 2017 | No | ||
| Wu Guowen | Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. | Director | January 28, 2022 | No | |
| Huang Xiqin | Guozhonglian Asset Appraisal Land and Real Estate Valuation Co., Ltd. | Executive Director | May 26, 1998 | Yes | |
| Guozhonglian Construction Engineering Management Consulting Co., Ltd. | Chairman | December 13, 2000 | Yes | ||
| Guozhonglian Assets Evaluation Lands&Real Estate Evaluation Consulting Co.,Ltd. | Chairman | November 26, 2001 | January 27, 2025 | Yes | |
| Director | January 27, 2025 | Yes | |||
| Beijing Guozhonglian Auction Co., Ltd. | Director | February 28, 2015 | No | ||
| Guangdong Construction Engineering Group Co., Ltd. | External director | January 1, 2022 | Yes | ||
| Du Wei | Shenzhen Borun Investment Co., Ltd. | Director, General Manager | February 1, 2020 | No | |
| Ning Jie | Guangdong Ganglian Law Firm | Senior Partner | February 2, 2015 | Yes | |
| Zhang Ming | Shenzhen Capital Holdings Co., Ltd. | Deputy Director of the Asset Management Department | June 25, 2023 | Yes | |
| Shenzhen Water and Environment Investment Group Co., Ltd. | Supervisor | September 22, 2022 | No | ||
| Shenzhen Clou Electronics Co., Ltd. | Director | June 26, 2023 | No | ||
| Artron Art (Group) | Director | October 30, 2024 | No |
| Co., Ltd. | |||||
| Yu Haiyong | Shenzhen Capital Holdings Co., Ltd. | Deputy Director of Discipline Inspection and Supervision Office (Office of Board of Supervisors) | January 2024 | Yes | |
| Shenzhen Yuanzhi Energy Storage Private Fund Management Co., Ltd. | Supervisor | April 29, 2024 | No | ||
| Qian Wenhui | Shenzhen Guoneng Property Management Co., Ltd. | Director, Deputy General Manager | July 26, 2024 | No |
Punishments by Securities Regulatory Authorities in the past three years on the Company's directors, supervisors and seniorofficers who are currently in office and leave office during the reporting period
□Applicable ?Not applicable
3. Remuneration of directors, supervisors and senior officers
Decision-making procedures, basis for determination and actual payment of remuneration of directors, supervisors and seniorofficers
(1) Decision-making procedures: according to the relevant provisions of the Company's Articles of Association, the remunerationof directors and supervisors shall be determined by the General Meeting, and the remuneration of senior officers shall bedetermined by the Board of Directors.
(2) Basis for determination: at present, the Company has not yet implemented a remuneration system for non-independentdirectors and supervisors, and directors and employee supervisors who serve in the Company only receive remuneration for theadministrative positions they hold in the Company. The Company has established the Administrative Measures for theRemuneration and Assessment of Senior Officers, which determines the annual remuneration standards for the Company's seniorofficers. The senior officers of the Company are subject to an annual salary system. The annual remuneration consists of two parts:
the basic annual salary and the performance annual salary, accounting for 40% and 60% respectively. The Board of Directorsshall determine the actual remuneration to be paid based on the assessment results and audit of the annual operating performanceindicators of the Senior Officers. If a senior officer changes his position, promotion, position value or other special reasons, hissalary plan shall be re-verified according to the principle of "salary change with position change", and the salary shall becalculated according to the position standard and the actual time in the position.
(3) Actual payment: the Company pays remuneration in strict accordance with the decision-making procedures and the basis fordetermining the remuneration of directors, supervisors and senior officers, and the expenses related to transportation,accommodation, research, inspection and attendance at meetings, etc. incurred by directors and supervisors due to the performanceof their duties shall be borne by the Company.Remuneration of directors, supervisors and senior officers of the Company during the reporting period:
Unit: RMB 10,000
| Name | Gender | Age | Position | Incumbency status | Total pre-tax remuneration received from the Company | Whether to receive remuneration from related |
| parties of the Company | ||||||
| Kong Guoliang | Male | 41 | Chairman | Incumbent | 80.35 | No |
| Hu Ming | Male | 54 | Vice Chairman | Incumbent | 0.00 | Yes |
| Huang Qing | Male | 53 | Director | Incumbent | 0.00 | Yes |
| Chen Yuhui | Male | 59 | Director, General Manager | Incumbent | 76.55 | No |
| Chen Yedong | Male | 51 | Director | Incumbent | 68.95 | No |
| Wu Guowen | Male | 59 | Director, Executive Deputy General Manager | Incumbent | 68.95 | No |
| Huang Xiqin | Female | 53 | Independent director | Incumbent | 11.90 | Yes |
| Du Wei | Male | 69 | Independent director | Incumbent | 13.33 | No |
| Ning Jie | Male | 41 | Independent director | Incumbent | 6.67 | Yes |
| Zhai Baojun | Male | 53 | Chairman of the Board of Supervisors | Incumbent | 68.95 | No |
| Zhang Ming | Male | 36 | Supervisor | Incumbent | 0.00 | Yes |
| Yu Haiyong | Male | 42 | Supervisor | Incumbent | 0.00 | Yes |
| Qian Wenhui | Male | 56 | Employee representative supervisor | Incumbent | 47.00 | No |
| Lu Yindi | Female | 42 | Employee representative supervisor | Incumbent | 33.72 | No |
| Li Chao | Male | 53 | Deputy General Manager | Incumbent | 73.84 | No |
| Tao Lin | Male | 57 | Deputy General Manager | Incumbent | 73.84 | No |
| Zhang Xiaoyin | Male | 37 | Chief Financial Officer | Incumbent | 0.00 | Yes |
| Zou Yi | Male | 51 | Secretary of the Board of Directors | Incumbent | 64.39 | No |
| Sun Huirong | Male | 41 | Director | Resigned | 0.00 | Yes |
| Chen Zetong | Male | 54 | Independent director | Resigned | 6.67 | Yes |
| Li Caijun | Male | 46 | Supervisor | Resigned | 0.00 | Yes |
| Liao Junkai | Male | 36 | Supervisor | Resigned | 0.00 | Yes |
| Total | - | - | - | - | 695.11 | - |
Other information
□Applicable ?Not applicable
VI. Directors' performance of duties during the reporting period
1. Information of the Board of Directors during the reporting period
| Session | Convening date | Disclosure date | Resolution |
| The 22nd Extraordinary Meeting of the Ninth Board of Directors | January 23, 2024 | January 25, 2024 | Reviewed and approved the Proposal on the Property Lease Management Services Provided by Shenzhen Xiefu Energy Co., Ltd., a Held Subsidiary of the Company, to Shenzhen Energy Corporation and the Related Transactions |
| The 23rd Extraordinary Meeting of the Ninth Board of Directors | February 6, 2024 | February 7, 2024 | Reviewed and approved the Proposal on Listing and Transfer of the Assets Related to the Generating Units and Heavy Oil Processing Line of Shenzhen Nanshan Power (Zhongshan) Power Co., |
| Ltd., a Held Subsidiary of the Company and the Proposal on Convening the Second Extraordinary General Meeting of Shareholders in 2024. | |||
| The 7th Meeting of the Ninth Board of Directors | April 10, 2024 | April 12, 2024 | Reviewed and approved 21 proposals, including the 2023 Report on the Work of the Board of Directors and the 2023 Report on the Work of the General Manager |
| The 24th Extraordinary Meeting of the Ninth Board of Directors | April 24, 2024 | April 26, 2024 | Reviewed and approved the 2024 First Quarter Report |
| The 25th Extraordinary Meeting of the Ninth Board of Directors | May 31, 2024 | June 1, 2024 | Reviewed and approved five proposals, including the Proposal on the Re-election of the Board of Directors and the Election of Non-independent Directors for the Tenth Board of Directors and the Proposal on the Re-election of the Board of Directors and the Election of Independent Directors for the Tenth Board of Directors. |
| The First Meeting of the Tenth Board of Directors | June 20, 2024 | June 21, 2024 | Reviewed and approved eight proposals, including Proposal on the Election of the Chairman of the Tenth Board of Directors of the Company and Proposal on the Election of the Vice Chairman of the Tenth Board of Directors of the Company. |
| The First Extraordinary Meeting of the Tenth Board of Directors | July 18, 2024 | July 19, 2024 | Reviewed and approved the Proposal on Investing in the Project of the 300MW/600MWh Independent Energy Storage Power Station in Cuiheng New Area, Zhongshan City (Phase I). |
| The Second Meeting of the Tenth Board of Directors | August 21, 2024 | August 23, 2024 | Reviewed and approved the full text and summary of the 2024 Semi-Annual Report |
| The Second Extraordinary Meeting of the Tenth Board of Directors | September 11, 2024 | September 12, 2024 |
Reviewed and approved the Proposal on the PublicListing and Transfer of 40% of the Equity ofHuidong Xiefu Port Comprehensive DevelopmentCo., Ltd. by Xiefu Company, a Held Subsidiary ofthe Company.
| The Third Extraordinary Meeting of the Tenth Board of Directors | October 23, 2024 | October 25, 2024 | Reviewed and approved the Third Quarter Report of 2024 and the Proposal on the Investment by Shenzhen Nanshan Power Environmental Protection (Shenzhen) Co., Ltd., a Wholly-owned Subsidiary of the Company, in Shenzhen Yuanzhi Zhongkai Energy Storage Technology Innovation Private Fund Partnership (Limited Partnership) and the Related Transactions. |
| The Fourth Extraordinary Meeting of the Tenth Board of Directors | November 25, 2024 | November 26, 2024 | Reviewed and approved Proposal on the Formulation of the Management System for Appointing Accounting Firms, Proposal on Appointing the Audit Institution for 2024 and Determining Its Remuneration, Proposal on Applying for a Line of Credit from a Financial Institution by Pledging Patent Rights, and Proposal on Convening the Fourth Extraordinary General Meeting in 2024. |
| The Fifth Extraordinary Meeting of the Tenth Board of Directors | December 5, 2024 | December 7, 2024 | Reviewed and approved the Proposal on Re-listing and Transferring the Relevant Assets of the Generating Unit of the Company's Held Subsidiary Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd., the Proposal on Scrapping the Assets of the Held Subsidiary Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd., and the Proposal on Convening the Fifth Extraordinary General |
Meeting in 2024
2. Attendance of directors at the Board of Directors and the General Meeting
| Attendance of directors at the Board of Directors and the General Meeting of Shareholders | |||||||
| Name of Director | Number of times of attendance at the Board of Directors during the reporting period | Number of times of on-site attendance at the Board of Directors | Number of times of attendance at the Board of Directors by correspondence | Number of times of attendance at the Board of Directors by proxy | Number of times of absences from the Board of Directors | Have you failed to attend the meetings of Board of Directors in person for two consecutive times | Number of times of attendance at the General Meeting |
| Kong Guoliang | 12 | 3 | 9 | 0 | 0 | No | 6 |
| Hu Ming | 12 | 3 | 9 | 0 | 0 | No | 2 |
| Huang Qing | 12 | 2 | 9 | 1 | 0 | No | 6 |
| Chen Yuhui | 12 | 3 | 9 | 0 | 0 | No | 5 |
| Chen Yedong | 7 | 2 | 5 | 0 | 0 | No | 2 |
| Wu Guowen | 12 | 3 | 9 | 0 | 0 | No | 6 |
| Huang Xiqin | 12 | 1 | 10 | 1 | 0 | No | 6 |
| Du Wei | 12 | 3 | 9 | 0 | 0 | No | 6 |
| Ning Jie | 7 | 2 | 5 | 0 | 0 | No | 2 |
| Sun Huirong | 5 | 0 | 4 | 1 | 0 | No | 4 |
| Chen Zetong | 5 | 0 | 4 | 1 | 0 | No | 4 |
Note on failure to attend the Board of Directors in person for two consecutive timesDuring the reporting period, there is no failure to attend the Board of Directors in person for two consecutive times.
3. Directors' objections to matters relating to the Company
Whether the directors have raised any objections to matters relating to the Company
□Yes ?No
During the reporting period, the directors did not raise any objection to matters relating to the Company.
4. Other notes on directors' performance of duties
Whether the directors' recommendations to the Company have been adopted?Yes □NoThe statement that the directors' proposals relating to the Company have or have not been adoptedDuring the reporting period, all directors of the company have been diligent and conscientious in carrying out their work in strictaccordance with the relevant regulations of CSRC and Shenzhen Stock Exchange, as well as the Company's Articles ofAssociation, Rules of Procedure of the Board of Directors and other systems, paid close attention to the Company's standardizedoperation and business situation, and carefully studied the various proposals submitted to the Board of Directors for review basedon the Company's actual situation, so as to ensure scientific decision-making and safeguard the legitimate rights and interests ofthe Company and all shareholders.
VII. Information of Special Committees under the Board of Directors during the reportingperiod
| Name of the Committee | Members | Number of meetings held | Convening date | Content of the meeting | Important comments and suggestions put forward | Other performance of duties | Details of the objections (if any) |
| Strategy and Investment Management Committee | Kong Guoliang, Hu Ming, Huang Qing, Chen Yuhui, Wu Guowen | 8 | February 6, 2024 | Reviewed the Proposal on Listing and Transfer of the Assets Related to the Generating Units and Heavy Oil Processing Line of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd., a Held Subsidiary of the Company | All the members present agreed to the proposal without objection | ||
| April 10, 2024 | 1. Reviewed the 2023 Annual Performance Report of the Strategy and Investment Management Committee of the Board of Directors 2. Reviewed the Proposal on the Application for Comprehensive Credit and Provision of Guarantees by the Company and Held Subsidiaries in 2024 3. Reviewing the Proposal on Using Temporarily Idle Self-owned Funds of the Company for the Deposit of Structured Deposits in 2024 | All members present at the meeting had no objection and agreed to all proposals of the meeting | |||||
| May 31, 2024 | Reviewed the Proposal on Re-listing and Transfer of the Assets Related to the Generating Units and Heavy Oil Processing Line of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd., a Held Subsidiary of the Company | All the members present agreed to the proposal without objection | |||||
| July 18, 2024 | Reviewed the Proposal on Investing in the Project of the 300MW/600MWh Independent Energy Storage Power Station in Cuiheng New Area, Zhongshan City (Phase I). | All the members present agreed to the proposal without objection | |||||
| September 11, 2024 | Reviewed the Proposal on the Public Listing and Transfer of 40% of the Equity of Huidong Xiefu Port Comprehensive Development Co., Ltd. by Xiefu Company, a Held Subsidiary of the Company. | All the members present agreed to the proposal without objection | |||||
| October 23, 2024 | Reviewed the Proposal on the Investment by Shenzhen Nanshan Power Environmental Protection (Shenzhen) Co., Ltd., a Wholly-owned Subsidiary of the | All the members present agreed to the proposal |
| Company, in Shenzhen Yuanzhi Zhongkai Energy Storage Technology Innovation Private Fund Partnership (Limited Partnership) and the Related Transactions. | without objection | ||||||
| November 25, 2024 | Reviewed the Proposal on Applying for Credit Lines from Financial Institutions by Pledge of Patents | All the members present agreed to the proposal without objection | |||||
| December 5, 2024 | Reviewed the Proposal on Re-listing and Transferring the Relevant Assets of the Generating Units of the Held Subsidiary Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. | All the members present agreed to the proposal without objection | |||||
| Nomination Committee | Chen Zetong, Hu Ming, Du Wei | 2 | April 8, 2024 | Reviewed the 2023 Annual Performance Report of the Nomination Committee of the Board of Directors | All the members present agreed to the proposal without objection | ||
| May 31, 2024 | 1. Reviewed the Proposal on the Re-election of the Board of Directors and the Election of Non-independent Directors of the Tenth Board of Directors 2. Reviewed the Proposal on the Re-election of the Board of Directors and the Election of Independent Directors of the Tenth Board of Directors | All members present at the meeting had no objection and agreed to all proposals of the meeting | |||||
| Du Wei, Hu Ming, Ning Jie | 1 | June 20, 2024 | 1. Reviewed the Proposal on the Appointment of the Company's General Manager 2. Reviewed the Proposal on the Appointment of the Company's Deputy General Manager 3. Reviewed the Proposal on the Appointment of the Company's Chief Financial Officer 4. Reviewed the Proposal on the Appointment of the Company's Secretary of the Board of Directors | All members present at the meeting had no objection and agreed to all proposals of the meeting | |||
| Remuneration and Assessment Committee | Huang Xiqin, Wu Guowen, Du Wei | 1 | April 8, 2024 | 1. Reviewed the 2023 Annual Performance Report of the Remuneration and Appraisal Committee of the Board of Directors 2. Reviewed the Management Measures for the Remuneration | All members present at the meeting had no objection and agreed |
| and Performance Appraisal of Senior Officers 3. Reviewed the Proposal on the 2024 Annual Remuneration Plan | to all proposals of the meeting | ||||||
| Huang Xiqin, Huang Qing, Du Wei | 1 | June 20, 2024 | Reviewed the Proposal on the Consideration of the 2024 Annual and Tenure Business Performance Responsibility Letters of the Company's Management | All the members present agreed to the proposal without objection | |||
| Audit Committee | Huang Xiqin, Sun Huirong, Chen Zetong | 3 | January 23, 2024 | Listening to and discussing the Communication Letter between Certified Public Accountants and Those Charged with Governance submitted by Lixinzhonglian CPAS | All the members present at the meeting have no objection | ||
| April 8, 2024 | 1. Reviewed the 2023 Annual Performance Report of the Audit Committee of the Board of Directors 2. Reviewed the full text and summary of the 2023 Annual Report 3. Reviewed the Proposal on the 2023 Final Financial Accounts Report 4. Reviewed the Proposal on the Provision and Reversal of Assets Impairment in 2023 5. Reviewed the Proposal on the Financial Write-off of Long-outstanding Receivables and Payables in 2023 6. Reviewed the Proposal on the 2023 Annual Profit Distribution Plan 7. Reviewed the Proposal on the Adjustment of the Residual Value Rate of Fixed Assets and the Change in Accounting Estimates. 8. Reviewed the 2023 Evaluation Report on Internal Control 9. Reviewed the 2023 Work Summary of the Internal Audit Institution and the 2024 Audit Plan 10. Reviewed the 2023 Annual Evaluation Report on the Performance of the Accounting Firm 11. Reviewed the Report on the Performance of the Supervision Duties by the Audit Committee of the Board of Directors over the Accounting Firm in 2023 | All members present at the meeting had no objection and agreed to all proposals of the meeting | |||||
| April 24, | 1. Reviewed the 2024 First | All |
| 2024 | Quarter Report 2. Listened to the 2024 First Quarter Report 3. Listened to the 2024 First Quarter Work Report of the Audit and Risk Control Department | members present at the meeting had no objection and agreed to all proposals of the meeting | ||||
| Huang Xiqin, Huang Qing, Ning Jie | 6 | June 20, 2024 | Reviewed the Proposal on the Appointment of the Company's Chief Financial Officer | All the members present agreed to the proposal without objection | ||
| August 20, 2024 | 1. Reviewed the full text and summary of the 2024 Semi-annual Report 2. Listened to the 2024 Semi-annual Final Financial Account Report 3. Listened to the 2024 Second Quarter Work Report of the Audit and Risk Control Department | All members present at the meeting had no objection and agreed to all proposals of the meeting | ||||
| October 22, 2024 | 1. Reviewed the 2024 Third Quarter Report 2. Listened to the 2024 Third Quarter Financial Account Report 3. Listened to the 2024 Semi-annual Audit Work Report 4. Listened to the 2024 Third Quarter Work Report of the Audit and Risk Control Department | All members present at the meeting had no objection and agreed to all proposals of the meeting | ||||
| November 22, 2024 | 1. Reviewed the Proposal on Formulating the Management System for the Appointment of the Accounting Firm 2. Reviewed the Proposal on Appointing the Audit Institutions and Determining Their Remuneration in 2024 | All members present at the meeting had no objection and agreed to all proposals of the meeting | ||||
| December 4, 2024 | Reviewed the Proposal on the Scrapping of Assets of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd., a Held Subsidiary | All the members present agreed to the proposal without objection | ||||
| December 30, 2024 | Listened to the 2024 Audit Plan of Shenzhen Nanshan Power Co., Ltd. submitted by Lixinzhonglian CPAS | All the members present at the meeting |
have noobjection
8. Work of the Board of Supervisors
Whether the Board of Supervisors has identified any risks to the Company in its supervisory activities during the reporting period
□Yes ?No
The Board of Supervisors has no objection to the supervision matters during the reporting period.
9. Employees
1. Number of employees, professional composition and education background
| Number of active employees of parent company at the end of the reporting period | 234 |
| Number of active employees of major subsidiaries at the end of the reporting period | 58 |
| Total number of active employees at the end of the reporting period | 292 |
| Total number of employees receiving remuneration in the current period | 289 |
| Number of retired employees whose the parent company and major subsidiaries have to bear the expenses | 0 |
| Professional composition | |
| Category | Number |
| Production staff | 64 |
| Salesperson | 8 |
| Technical staff | 57 |
| Financial staff | 12 |
| Administrative staff | 151 |
| Total | 292 |
| Education background | |
| Category | Number |
| Junior college and technical secondary school education | 123 |
| Bachelor's degree | 140 |
| Master's degree or above | 29 |
| Total | 292 |
2. Remuneration policy
The Board of Directors implements the principle of fixed basic salary + floating performance salary for the Company's annualsalary accrual. The remuneration of the Chairman shall be submitted to the General Meeting for approval and determination afterbeing reviewed and approved by the Board of Directors; The remuneration of senior officers at the level of General Manager andDeputy General Manager shall be formulated by the Remuneration and Assessment Committee of the Board of Directors andsubmitted to the Board of Directors for approval and determination. The remuneration of other personnel is authorized to bemanaged by the Company's management team based on the principles of "fixing salary based on position", "getting paid accordingto work" and "performance-oriented". Within the annual remuneration quota approved by the Board of Directors, the Companystrictly controls the remuneration costs, establishes a remuneration incentive mechanism linked to the performance of the
employees, formulates the remuneration standards, distribution plans, assessment and rewards and punishment methods for thepersonnel at all levels, and is responsible for organizing and implementing them, so as to give full play to the role of the incentiverole of the remuneration.
3. Training plan
The Company attaches great importance to employee training and has established a more complete training system. Bystrengthening employee training, it improves the job skills and comprehensive quality of the employees, better meets the needs ofthe Company's operation and management for talent, and at the same time cultivates reserve talents for the Company's sustainabledevelopment. During the reporting period, in terms of safety training, the Company has organized safety education and training,emergency rescue drills, emergency response capability training, etc. at all levels of the Company in accordance with the WorkSafety Law and other laws and regulations in respect of safety training, so as to improve the safety awareness, accident preventioncapabilities and business level of cadres and employees at all levels. In terms of on-the-job training, the Company has adopted acombination of expatriate learning and internal training, carried out certified on-the-job training for key business and technicalpositions to improve the capabilities of employees to perform their duties, and also relied on the gas turbine simulation trainingbase to improve the practical operation and adaptability of power plant operators. In terms of training and learning of Partymembers, the Party organizations at all levels of the Company strictly implement the relevant work requirements of superiors,solidly carry out "three meetings and one lesson", integrate online and offline resources, and build a normal and diversifiededucation and training system for Party members. At the same time, through various forms such as red base research, specialtraining, visit and exchange, and "Secretary's Party class", enrich the learning and education carriers, lead the majority of Partymembers to give full play to the vanguard and exemplary role, and build a strong and powerful battle fortress of grassroots partyorganizations.
4. Outsourcing of labor
□Applicable ?Not applicable
X. Profit distribution and capitalization of capital reserve of the CompanyThe formulation, implementation or adjustment of profit distribution policies, especially cash dividend policies, during thereporting period?Applicable □Not applicableProfit distribution policy of the Company(I) The Company implements a continuous and stable profit distribution policy, taking into account the reasonable return oninvestment of investors and the long-term development of the Company. The profit distribution of the Company shall not exceedthe scope of the accumulated profits available for distribution, and shall not damage the going-concern ability of the Company,and shall adhere to the principle of distribution in the statutory order and non-distribution in the principle of non-distribution ofoutstanding losses.(II) The Company's profit distribution may be made in cash, in shares, in a combination of cash and shares, or in other wayspermitted by laws and regulations.(III) Conditions for cash dividends
1. With a positive annual or semi-annual distributable profit and abundant cash flow, the implementation of cash dividends willnot affect the Company's subsequent going concern;
2. The audit institution issues a standard auditor's report with unqualified opinion on the Company's annual or semi-annualfinancial report; or the auditor issues a non-standard unqualified auditor's report on the Company's annual or semi-annual financialreport, but it does not affect the financial position, operating results and cash flows of the year;
3. There are no major investment plans or major cash disbursements (except for projects with raised funds).Major investment plans or major cash expenditures refer to the cumulative expenditures of the Company's proposed foreigninvestment, asset acquisition or equipment purchase in the next twelve months that reach or exceed 30% of the Company's latestaudited total assets.(IV) Under the condition of ensuring the full cash dividend distribution, the Company may, according to the accumulated profitsavailable for distribution, the provident fund and the cash flow, adopt the stock dividend method for profit distribution in order tomaintain the expansion of share capital in line with the growth of performance, on the premise of ensuring the minimum cashdividend ratio and the reasonable scale of the Company's share capital.(V) On the premise of complying with the Company's profit distribution principles, meeting the conditions for cash dividends, andensuring the Company's normal operation and long-term development, the Company will actively distribute dividends in cash. Inprinciple, cash dividends will be distributed once a year, and the amount of cash dividends shall not be less than 10% of thedistributable profit realized in that year. Within any three consecutive accounting years, the cumulative amount of profitsdistributed in cash by the Company shall not be less than 30% of the average annual distributable profit realized in these threeyears.(VI) The Board of Directors may propose interim cash dividends based on the Company's profitability and capital needs.(VII) After the Company's general meeting makes a resolution on the profit distribution plan, the Board of Directors shallcomplete the distribution of dividend (or shares) within 2 months after the general meeting is held.
| Special instructions for cash dividend policy | |
| Whether it complies with the Articles of Association or the resolutions of the General Meeting: | Yes |
| Whether the dividend standards and proportions are explicit and clear: | Yes |
| Whether relevant decision-making procedures and mechanisms are complete: | Yes |
| Whether the Independent Directors have fulfilled their duties and played their due role: | Yes |
| If the Company does not make cash dividends, it shall disclose the specific reasons and the next measures to be taken to enhance the return level of investors: | Yes |
| Whether minority shareholders have the opportunity to fully express their opinions and demands, and whether their legitimate rights and interests are fully protected: | Yes |
| Whether the conditions and procedures are compliant and transparent if the cash dividend policy is adjusted or changed: | Yes |
During the reporting period, the Company are profitable and the parent company's profits available for distribution to shareholdersare positive, but no cash dividend distribution plan has been put forward?Applicable □Not applicable
| Reasons for not proposing a cash dividend distribution plan when the Company has made a profit during the reporting period and the distributable profit available to shareholders in the parent company is positive | Use and use plan of the Company's undistributed profits |
| The Company is still under great operating pressure and is in a critical period of simultaneous progress in assets in stock operation and transformation and development, which makes it difficult to meet the relevant provisions of the Articles of Association on profit distribution conditions. Therefore, the Company does not intend to distribute cash dividends in 2024. | To replenish the operating cash flow and make adequate reserve of funds for subsequent transformation and development. |
Profit distribution and capitalization of capital reserve during the reporting period?Applicable □Not applicable
| Number of bonus shares issued per 10 shares (shares) | 0 |
| Amount of dividend per 10 shares (RMB) (including tax) | 0 |
| Number of shares converted for every 10 shares (shares) | 0 |
| Share capital base of distribution plan (shares) | 602,762,596 |
| Amount of cash dividends (RMB) (tax included) | 0.00 |
| Amount of cash dividends paid by other means (such as repurchase of shares) (RMB) | 0.00 |
| Total cash dividends (including other methods) (RMB) | 0 |
| Distributable profit (RMB) | 185,255,604.81 |
| Proportion of total cash dividends (including other methods) in total profit distribution | 0 |
| Cash dividends this time | |
| Others | |
| Details of profit distribution and conversion of capital reserves into share capital | |
| None | |
XI. Implementation of the Company's equity incentive plan, employee stock ownership planor other employee incentive measures
□Applicable ?Not applicable
The Company has no equity incentive plan, employee stock ownership plan or other employee incentive measures and theirimplementation during the reporting period.XII. Construction and implementation of the internal control system during the reportingperiod
1. Construction and implementation of internal control
In accordance with the provisions of the Basic Standard for Enterprise Internal Control and its supporting guidelines, the Companyhas established an organizational system for comprehensive risk management and internal control, with the Board of Directorsresponsible, the Board of Supervisors supervising, the Compliance and Risk Management Committee coordinating and leading,the Audit and Risk Control Department organizing implementation and evaluation, and all departments and affiliated enterprisesfully performing their duties, to supervise and evaluate the Company's internal control management. The Company effectivelyprevents risks in operation and management and promotes the realization of internal control objectives through the operation,analysis and evaluation of the internal control system.
2. Details of major defects in internal control identified during the reporting period
□Yes ?No
XIII. Management and control of subsidiaries by the Company during the reporting period
The Company has formulated management systems such as the Property Rights Management Measures, the Post-investmentManagement Measures, and the List of Rights and Responsibilities of the Company and Nanshan Power Plant and its SubordinateHolding Enterprises, which can achieve the effects of clarifying authority, specifying responsibilities, improving efficiency,optimizing resource allocation, and standardizing enterprise management, and can meet the needs of the Company's overalldevelopment strategy.XIV. Evaluation Report on Internal Control or Audit Report on Internal Control
1. Evaluation Report on Internal Control
| Date of disclosure of full text of Evaluation Report on Internal Control | April 23, 2025 | |
| Full-text disclosure index of Evaluation Report on Internal Control | 2024 Evaluation Report on Internal Control, cninfo.com.cn http://www.cninfo.com.cn | |
| Ratio of the total assets of the unit included in the evaluation scope to the total assets of the Company's consolidated financial statements | 84.19% | |
| Ratio of operating revenue of the unit included in the evaluation scope to operating revenue of the Company's consolidated financial statements | 99.96% | |
| Defect identification standards | ||
| Category | Financial report | Non-financial report |
| Qualitative standards | Major defects: under major business activities, many consolidated statements companies have serious defects; Or a few consolidated statements companies have serious defects, but the companies with serious defects are the main participant in the major business activities; Great defects: under major business activities, a few consolidated statements companies have serious defects, and the companies with serious defects are not the main participants in the major business activities; Or multiple consolidated statements companies have moderate defects; Or a few consolidated statements companies have moderate defects, but the companies with moderate defects are the main participants in the major business activities; General defect: in major business activities, a few companies sharing consolidated statements have moderate defect, and these companies with moderate defect are not the main | Major defects: under major business activities, many consolidated statements companies have serious defects; Or a few consolidated statements companies have serious defects, but the companies with serious defects are the main participant in the major business activities; Great defects: under major business activities, a few consolidated statements companies have serious defects, and the companies with serious defects are not the main participants in the major business activities; Or multiple consolidated statements companies have moderate defects; Or a few consolidated statements companies have moderate defects, but the companies with moderate defects are the main participants in the major business activities; General defect: in major business activities, a few companies sharing consolidated statements have moderate defect, and these companies with moderate defect are not the main |
| participants in the major business activities; Or companies share consolidated statements only have common defects; Or there are no defects in internal control in major business activities, with only defects in internal control in non-major business activities. | participants in the major business activities; Or companies share consolidated statements only have common defects; Or there are no defects in internal control in major business activities, with only defects in internal control in non-major business activities. | |
| Quantitative standards | Major defects: misstated amount is ≥ 0.5% of total assets in the consolidated statements; Great defect: 0.2% of total assets in the consolidated statements ≤ misstated amount < 0.5% of total assets in the consolidated statements; General defect: misstated amount < 0.2% of total assets in the consolidated statements. | Major defect: amount of direct loss ≥ 0.5% of total assets in the consolidated statements; Great defect: 0.2% of total assets in the consolidated statements ≤ amount of direct loss < 0.5% of total assets in the consolidated statements; General defect: amount of direct losses < 0.2% of total assets in the consolidated statements. |
| Number of major defects in financial reports | 0 | |
| Number of major defects in non-financial reports | 0 | |
| Number of great defects in financial reports | 0 | |
| Number of great defects in non-financial reports | 0 | |
2. Audit Report on Internal Control
?Applicable □Not applicable
| Considerations in Audit Report on Internal Control | |
| The accounting firm believes that Shenzhen Nanshan Power Co., Ltd. has maintained effective financial report on internal control in all material aspects in accordance with the Basic Standards for Enterprise Internal Control and relevant regulations. | |
| Disclosure of the auditor's report on internal control | Disclosed |
| Full-text disclosure date of the Audit Report on Internal Control | April 23, 2025 |
| Full-text disclosure index of the Audit Report on Internal Control | 2024 Audit Report on Internal Control, http://www.cninfo.com.cn |
| Opinion type of the internal auditor's report | Standard unqualified opinion |
| Whether there are major defects in the non-financial report | No |
Whether the accounting firm issues an Audit Report on Internal Control with non-standard opinions
□Yes ?No
Whether the Audit Report on Internal Control issued by the accounting firm is consistent with the self-evaluation report of Boardof Directors?Yes □No
XV. Rectification of issues found in the self-examination of the special action on corporategovernance of the listed companyThe self-examination and rectification of the special action on corporate governance of the listed company has been completed in2021. During the reporting period, the Company strictly followed the relevant laws and regulations, closely focused on theCompany's development strategy, diligently performed its obligations and exercised its powers, conscientiously implementedvarious resolutions of the General Meeting, actively and effectively carried out various tasks of Board of Directors, and effectivelysafeguarded the legitimate rights and interests of the Company and all its shareholders.
Section V Environmental and social responsibilities
I. Major environmental protection issuesWhether the listed company and its subsidiaries are key pollutant-discharging units announced by the environmental protectiondepartment?Yes □No
1. Policies and industry standards related to environmental protection
The Company belongs to the thermal power generation industry under the national economic classification 4411, and is currentlyimplementing the Emission Standards of Air Pollutants for Thermal Power Plants GB-13223-2011. At the same time, its affiliatedNanshan Power Plant strictly controls nitrogen oxide emissions in accordance with the 2018 "Shenzhen Blue" Sustainable ActionPlan.
2. Administrative licenses for environmental protection
Nanshan Power Plant, the Company's subsidiary, has obtained a pollutant discharge license issued by the Nanshan AdministrationBureau of Shenzhen Ecological Environment Bureau, with license No. of 91440300764983799T001P.
3. Industry emission standards and specific information on the pollutant emissions involved in productionand operating activities
| Name of the Company or subsidiary | Types of main pollutants and specific pollutants | Names of main pollutants and specific pollutants | Emission mode | Number of discharge outlets | Distribution of discharge outlets | Emission concentration/intensity | Pollutant emission standards | Total emissions | Total approved emissions | Excessive emission |
| Shenzhen Nanshan Power Co., Ltd. | Nitrogen oxides | Nitrogen oxides | Concentrated emission of boiler and chimney | 3 | Inside the Nanshan Power Plant | <15 mg/m? | "Shenzhen Blue" emission standard <15mg/m? | 52.27 tons | 686.25 tons | None |
4. Treatment of pollutants
Shenzhen Nanshan Power Co., Ltd. owns three sets of 9E units, all of which adopt the DLN1.0+ low-nitrogen combustion systemof General Electric Company. During the reporting period, the Company strictly abided by the national environmental protectionlaws and regulations, and the pollutants discharged met the national discharge standards. There were no environmental pollutionaccidents, nor were there any penalties imposed by relevant departments due to major environmental protection problems.
5. Emergency plan for environmental emergencies
The emergency plan for sudden environmental incidents has been filed with the Guangdong Provincial Environmental ProtectionDepartment and the corresponding municipal environmental protection bureau.
6. Environmental self-monitoring plan
An environmental self-monitoring plan has been prepared and reviewed by the environmental protection department; Themonitoring data was disclosed timely on the environmental protection department’s website.
7. Information on investment in environmental governance and protection and payment of environmentalprotection tax
The Company attaches great importance to environmental protection and strengthens on-site management by carrying out specialtasks such as the investigation of potential environmental risks and standardized management of hazardous waste; In addition, theCompany continues to increase investment on the maintenance of environmental protection facilities and improves environmentalprotection infrastructure. All these initiatives have greatly improved the level of pollution prevention and control. The Companypays environmental protection tax in strict accordance with the Presidential Order No. 61 of the Environmental Protection TaxLaw of the People's Republic of China and other relevant laws and regulations.
8. Measures taken to reduce carbon emissions during the reporting period and the results
?Applicable □Not applicableDuring the reporting period, the power plants subordinate to the Company continuously improved the unit efficiency and reducedcarbon emissions by taking measures such as the technical renovation of the boiler's online flue gas system.
9. Administrative penalties for environmental issues during the reporting periodNone
10. Other environmental information that shall be disclosed
None
11. Other environmental protection related information
NoneThe Company shall comply with the disclosure requirements for power supply industry in the Shenzhen Stock Exchange ListedCompany Self-Regulatory Guidelines No. 3 - Industry Information Disclosure
12. Information on environmental accidents occurring in the listed companyNoneII. Social responsibilities
In 2024, although the Company faced many challenges in production, operation and management, the Company had the courage toassume social responsibilities, actively ensured power supply when the cost and price of power generation were seriously inverted,and conscientiously performed its social responsibilities to the best of its ability. In terms of work safety, the Company has beenadhering to the principle of work safety, making every effort to ensure the safety and stability of power production, activelyexploring the work safety management model under new business and new formats, optimizing and improving the internal worksafety management system and mechanism of the Company, and carrying out work safety, technical supervision, and innovationmanagement in an orderly manner, thus achieving the goal of "five-noes" in work safety. In terms of environmental protection, theCompany strictly complied with national and local environmental protection regulations, and always adhered to the concept ofclean power generation and circular economy development. All environmental protection work was effectively implemented, withenvironmental protection emission meeting the requirement and no environmental pollution accidents. In terms of love assistance,the Company thoroughly implemented the strategic decision-making and deployment of the central government for rural
revitalization, implemented the task of fixed-point assistance for rural revitalization in towns and villages, and dispatched a town-based assistance personnel to actively play a unique role in consumption assistance. The Company has also achieved a cumulativeamount of consumption assistance of about RMB 150,000 per year by purchasing agricultural products from the work sites in thetown, helping the sales of agricultural products inside and outside the province, and helping the in-depth implementation of the"High-quality Development Project for Hundreds of Counties, Thousands of Towns and Tens of Thousands of Villages" with solidactions and good results.
III. Consolidation and enhancing of the results of poverty eradication and ruralrevitalizationIn 2024, the Company thoroughly implemented the strategic decision-making and deployment of the central government for ruralrevitalization, implemented the task of fixed-point assistance for rural revitalization in towns and villages, and dispatched a town-based assistance personnel to actively play a unique role in consumption assistance. The Company has also achieved a cumulativeamount of consumption assistance of about RMB 150,000 per year by purchasing agricultural products from the work sites in thetown, helping the sales of agricultural products inside and outside the province, and helping the in-depth implementation of the"High-quality Development Project for Hundreds of Counties, Thousands of Towns and Tens of Thousands of Villages" with solidactions and good results.
Section VI Important mattersI. Fulfillment of commitments
1. Commitments made by the Company’s actual controller, shareholders, related parties, acquirers andthe Company that have been fulfilled during the reporting period and have not yet been fulfilled by theend of the reporting period
□Applicable ?Not applicable
During the reporting period, there were no commitments made by the Company’s actual controller, shareholders, related parties,acquirers and the Company that were fulfilled during the reporting period and had not yet been fulfilled by the end of the reportingperiod.
2. If there is a profit forecast for the Company's assets or projects and the reporting period is still in theprofit forecast period, the company shall explain that the assets or projects have met the original profitforecast and the reasons for that.
□Applicable ?Not applicable
II. Non-operating capital occupation of the listed company by controlling shareholders andother related parties
□Applicable ?Not applicable
There was no non-operational occupation of funds by the controlling shareholder or other related parties of the listed companyduring the reporting period.III. Illegal external guarantees
□Applicable ?Not applicable
The Company had no illegal external guarantees during the reporting period.
IV. Statement of the Board of Directors on the latest "Non-standard Audit Report"
□Applicable ?Not applicable
V. Explanation of the "Non-standard Audit Report" issued by the accounting firm for thereporting period by the Board of Directors, Board of Supervisors and independent directors(if any)
□Applicable ?Not applicable
VI. Description of changes in accounting policies, accounting estimates or correction ofmajor accounting errors compared with the previous year's financial report
?Applicable □Not applicable
1. Significant changes in accounting policies
| Content and reasons for changes in accounting policies | Names of report items significantly affected | Affected amount |
| In October 2023, the Ministry of Finance issued the Interpretation No. 17 of the Accounting Standards for Business Enterprises (CK [2023] No. 21), which stipulates the relevant contents of "the division of current liabilities and non-current liabilities", "the disclosure of financing arrangements of the supplier" and "the accounting treatment of after-sales leaseback transactions". The interpretation shall come into force as of January 1, 2024 and be implemented by the Company as of January 1, 2024. | No impact | 0.00 |
| In March 2024 and December 2024, the Ministry of Finance compiled and issued the Compilation of Application Guidelines for Accounting Standards for Business Enterprises 2024 and issued the Accounting Standards for Business Enterprises Interpretation No. 18 (CK [2024] No. 24), stipulating that the estimated liabilities arising from the quality assurance that does not belong to the individual performance obligation shall be included in the "primary business costs" and "other business costs" according to the determined amount, and shall no longer be included in the "selling and distribution expenses". The Interpretation shall come into force as of the date of issuance, and the Company shall implement the Interpretation No. 18 of the Accounting Standards for Business Enterprises as of January 1, 2024. | No impact | 0.00 |
2. Changes in significant accounting estimates
| Content and reasons for changes in accounting estimates | Approval procedure | Changes in accounting estimates Effective time point | Remark |
| In order to further strengthen the management of fixed assets, by sorting out the fixed assets card information of the Company and its held subsidiary, and combining with the actual use of the Company's fixed assets, the Company, in accordance with the principle of prudence, adjusted the net residual value rate of the fixed assets of house decoration, machinery equipment (except for gas turbine generator unit), means of transport, electronic equipment and other equipment, from the original 10% to 0-5%. | It has been reviewed and approved by the Board of Directors and the Board of Supervisors | Effective from January 1, 2024 |
Notes to changes in accounting estimates: for details of the changes in accounting estimates of the Company, please refer to theAnnouncement No. 2024-022 Announcement of Shenzhen Nanshan Power Co., Ltd. on Adjustment of Residual Value Rate ofFixed Assets and Changes in Accounting Estimates.VII. Explanation of changes in the scope of consolidated statements compared with theprevious year's financial report?Applicable □Not applicableIn July 2024, the Company's held subsidiary, Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd., contributed RMB 51million (accounting for 51%) in kind to establish Shenzhen Nanshan Power Xiwan Energy (Zhongshan) Co., Ltd. with ZhongshanNanlang Construction Development Co., Ltd. The project was included in the scope of consolidated statements of the Companyduring the reporting period.VIII. Appointment and dismissal of the accounting firmCurrent accounting firm
| Name of the domestic accounting firm | Lixinzhonglian CPAS (Special General Partnership) |
| Remuneration of the domestic accounting firm (RMB 10,000) | 65 |
| Length of audit services provided by the domestic accounting firm | 6 |
| Name of certified public accountant of domestic accounting firm | Cao Wei, Li Mincong |
| Length of audit services provided by certified public accountant of the domestic accounting firm | 5,1 |
Whether to hire a new accounting firm during the current period
□Yes ?No
Recruitment of accounting firm, financial consultants or sponsors for internal control audit?Applicable □Not applicableDuring the reporting period, the Company appointed Lixinzhonglian CPAS (Special General Partnership) as the accounting firmfor the internal control audit of the Company for the year 2024, and paid RMB 210,000 for the internal control audit fee.IX. Possible delisting after the disclosure of the annual report
□Applicable ?Not applicable
X. Matters related to bankruptcy and reorganization
□Applicable ?Not applicable
The Company had no bankruptcy or reorganization related matters during the reporting period.XI. Major litigation and arbitration matters
□Applicable ?Not applicable
The Company had no major litigation or arbitration matters during the reporting period.XII. Punishment and rectification
□Applicable ?Not applicable
The Company had no penalties or rectifications during the reporting period.XIII. Integrity of the Company, its controlling shareholders and actual controllers?Applicable □Not applicableDuring the reporting period, the Company and the its largest shareholder did not fail to fulfill the effective court judgments, or hadlarge amounts of debts that were not repaid at maturity, and were in good standing in terms of integrity. The company had nocontrolling shareholder or actual controller during the reporting period.XIV. Major related transactions
1. Related transactions related to daily operations
?Applicable □Not applicable
| Related party | Relationship | Type of related transactions | Details of related transactions | Pricing principles of related transa | Price of related transactions | Amount of related transactions (RMB 10,00 | Proportion in the amount of similar transa | Approved trading quota (RMB 10,000) | Whether the approved limit is excee | Settlement method of related transactions | Available market price of similar transa | Disclosure date | Disclosure index |
| ctions | 0) | ctions | ded | ctions | |||||||||
| Shenzhen MTC Co., Ltd. | Related legal person | Provision of energy management services to related persons | Energy management services | Fair value | Market price | 122.69 | 0.28% | 120 | Yes | Monthly settlement | Not applicable | April 12, 2024 | Announcement No.: 2024-025 |
| Artron Art (Group) Co., Ltd. and its subsidiaries | Related legal person | Purchase of goods from related parties | Purchase of goods | Fair value | Market price | 2.89 | 0.01% | 20 | No | Single settlement | Not applicable | April 12, 2024 | Announcement No.: 2024-025 |
| China Science and Technology Development Co., Ltd. | Related legal person | Provision of technical services to related persons | Technical transformation service | Fair value | Market price | 5.88 | 0.01% | Not applicable | Single settlement | Not applicable | Not applicable | Not applicable | |
| Shenzhen Energy Corporation | Related legal person | Rendering of services to related parties | Property custody service | Fair value | Market price | 440.44 | 0.99% | No | Annual settlement | Not applicable | January 25, 2024 | Announcement No.: 2024-005 | |
| Shenzhen Clou Electronics Co., Ltd. and its subsidiary | Related legal person | Provision of technical services to related persons | Engineering installation services | Fair value | Market price | 25.27 | 0.06% | Not applicable | Single settlement | Not applicable | Not applicable | Not applicable | |
| Total | - | - | 597.17 | - | 140 | - | - | - | - | - | |||
| Details of large-amount sales returns | None | ||||||||||||
| The actual performance during the reporting period (if any) if the total | It is expected that related transactions with Artron Art (Group) Co., Ltd. and its subsidiaries will amount to RMB 200,000 in 2024. The total amount of daily related transactions that | ||||||||||||
| amount estimated by category of the daily related transactions expected to occur in the current period | occurred during the reporting period is within the approved scope; It is expected that the amount of daily related transactions with Shenzhen MTC Co., Ltd. will be RMB 1.2 million. However, the actual transaction amount is RMB 1,226,900. This is due to the fact that Shenzhen Nanshan Power Environmental Protection Company, a wholly-owned subsidiary of the Company, provided energy management services to Shenzhen MTC Co., Ltd. According to the actual operation of the project, the actual transaction amount is slightly higher than the expected amount. Since the excess amount is negligible, it does not meet the criteria for special disclosure. The wholly-owned subsidiaries, Shenzhen Nanshan Power Gas Turbine Engineering Technology (Shenzhen) Co., Ltd. and Shenzhen Nanshan Power Environmental Protection (Shenzhen) Co., Ltd., respectively provided engineering installation services and technical transformation services to Sichuan Ruinan Electric Power Construction Engineering Co., Ltd. and China Science and Technology Development Co., Ltd., which are not expected in early 2024, and the transaction amount is relatively small. |
| Reasons for large differences between transaction prices and market reference prices (if applicable) | Not applicable |
2. Related transactions involving acquisition or sale of assets or equity
□Applicable ?Not applicable
The Company had no related transactions involving acquisition or sale of assets or equity during the reporting period.
3. Related transactions involving joint external investment
?Applicable □Not applicable
| Co-investors | Relationship | Name of the investee | Primary business of the investees | Registered capital of the investee (RMB 10,000) | Total assets of the investee (RMB 10,000) | Net assets of the investee (RMB 10,000) | Net profit of the investee (RMB 10,000) |
| Shenzhen Capital Holdings Co., Ltd., Shenzhen Yuanzhi Energy Storage Private Fund Management Co., Ltd., etc. | Related legal person | Shenzhen New Energy Storage Industry Equity Fund Partnership (Limited Partnership) | Engage in equity investments, investment management, asset management and other activities with private funds. | 651,000 | 325,572.40 | 325,572.40 | 345.24 |
| Shenzhen Yuanzhi Energy Storage Private Fund Management Co., Ltd., Shenzhen Zhongke Incubation Equity Investments Fund Management Co., Ltd., Shenzhen New Energy Storage Industry Equity Fund Partnership (Limited | Related legal person | Shenzhen Yuanzhi Zhongkai Energy Storage Technology Innovation Private Fund Partnership (Limited Partnership) | Engage in equity investments, investment management, asset management and other activities with private funds. | 40,000 | - | - | - |
Partnership), ChinaScience andTechnologyDevelopment Co.,Ltd., etc.
4. Related credit and debt accounts
□Applicable ?Not applicable
The Company had no related credit and debt accounts during the reporting period.
5. Transactions with financial companies that have relationship with the Company
□Applicable ?Not applicable
There were no deposits, loans, credit or other financial business between the Company and financial companies with relationshipand related parties.
6. The transactions between financial companies controlled by the Company and related parties
□Applicable ?Not applicable
There were no deposits, loans, credit or other financial business between financial companies controlled by the Company andrelated parties.
7. Other major related transactions
?Applicable □Not applicableAfter review and approval at the 22nd extraordinary meeting of the Ninth Board of Directors of the Company, Xiefu Company, theCompany and the Energy Corporation signed the Property Entrustment Management Contract, in which the Company acts as thesupervisory and guiding unit, and Xiefu Company provides property lease management services to the Energy Corporation.Related queries on the website of interim report disclosure of major related transactions
| Name of the interim announcement | Disclosure date of interim announcement | Website name of the interim announcement disclosure |
| Announcement on the Property Lease Management Service and Related Transactions of Shenzhen Energy Corporation by Shenzhen Xiefu Energy Co., Ltd., a Held Subsidiary of the Company | January 25, 2024 | cninfo.com.cn, Securities Times |
XV. Major contracts and their performance
1. Custody, contracting and lease matters
(1) Custody
□Applicable ?Not applicable
The Company had no custody during the reporting period.
(2) Contracting
□Applicable ?Not applicable
The Company had no contracting during the reporting period.
(3) Lease
□Applicable ?Not applicable
The Company had no lease during the reporting period.
2. Material guarantee
□Applicable ?Not applicable
The Company had no material guarantee during the reporting period.
3. Entrusting others to asset management
(1) Entrusted wealth management
□Applicable ?Not applicable
The Company had no entrusted wealth management during the reporting period.
(2) Entrusted loans
□Applicable ?Not applicable
The Company had no entrusted loans during the reporting period.
4. Other major contracts
□Applicable ?Not applicable
The Company had no other significant contracts during the reporting period.XVI. Description of other major matters
?Applicable □Not applicable
1. New energy storage industry equity fund matters: in February 2024, the Company jointly signed the Shenzhen New EnergyStorage Industry Equity Fund Partnership (Limited Partnership) Partnership Agreement, with 11 parties including ShenzhenCapital Holdings Co., Ltd., Shenzhen Yuanzhi Energy Storage Private Fund Management Co., Ltd., and SHENZHEN ENERGYCorporation. In March 2024, the Company completed the first installment of the capital contribution (i.e. 50% of the subscribedcapital contribution) of the Energy Storage Fund, and has completed the registration procedures for the industrial and commercialchanges of the Energy Storage Fund on February 29, 2024, and has completed the procedures for the change of information relatedto the private investment funds on March 14, 2024 in the Asset Management Association of China. (For details, please refer to therelevant announcements disclosed by the Company in the Securities Times and cninfo.com.cn, Announcement No.: 2024-012, 014)
2. Matters related to the land of Nanshan Power Plant: in 2024, the Company accessed the Notice of Shenzhen MunicipalBureau of Planning and Natural Resources on Issuing the Shenzhen Land Consolidation Plan for 2024 again from the officialwebsite of Shenzhen Municipal Bureau of Planning and Natural Resources. Shenzhen Land Consolidation Plan for 2024 stillincludes the land acquisition and storage of Nanshan Power Plant and related contents, which is no substantial change from the
contents of the land preparation plan disclosed in recent years. For details, please refer to the relevant announcements disclosed bythe Company in the Securities Times and cninfo.com.cn (Announcement No.: 2024-067)Except for the above matters, the refunds due to the Company's "Project Technical Transformation Benefit Fund" had no progressor change during the reporting period.
XVII. Major events of the Company's subsidiaries
□Applicable ?Not applicable
The Listing and Transfer of Generating Units of Shenzhen Nanshan Power Zhongshan Company: On February 6 and February 26,2024, the Company convened the 23rd Extraordinary Meeting of the Ninth Board of Directors, the 12th Extraordinary Meeting ofthe Ninth Board of Supervisors, and the Second Extraordinary General Meeting of 2024, respectively. During these meetings, theProposal on Listing and Transfer of the Assets Related to the Generating Units and Heavy Oil Processing Line of ShenzhenNanshan Power (Zhongshan) Power Co., Ltd., a Held Subsidiary of the Company was reviewed and approved, grantingauthorization for the listing and transfer of two sets of generating units along with their auxiliary equipment, as well as the heavyoil processing line equipment and spare parts of Shenzhen Nanshan Power Zhongshan Company, through the Shenzhen UnitedProperty and Equity Exchange; On May 31 and June 20, 2024, the 25th extraordinary meeting of the Ninth Board of Directors, the14th extraordinary meeting of the Ninth Board of Supervisors and the third extraordinary general meeting in 2024 of the Companyreviewed and approved the Proposal on the Re-listing and Transfer of the Assets Related to the Generating Units and Heavy OilProcessing Line of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd., a Held Subsidiary of the Company, and agreed to re-list and transfer the two sets of generating units and auxiliary equipment, heavy oil treatment line equipment and spare parts ofShenzhen Nanshan Power Zhongshan Company on the Shenzhen United Property and Equity Exchange. As of the disclosure dateof this annual report, Shenzhen Nanshan Power Zhongshan Company has signed the Physical Asset Transaction Contract withFujian Hengjing Investment Co., Ltd., and the transfer of generating unit equipment and related assets has been successful. (Fordetails, please refer to the relevant announcements disclosed by the Company on the Securities Times and cninfo.com.cn, withAnnouncement No.: 2024-008, 009, 010, 013, 032, 033, 035, 043, 068, 069, 070, 075, 2025-002)
Section VII Changes in shares and shareholdersI. Changes in shares
1. Changes in shares
Unit: Share
| Before the change | Increase or decrease in the change (+, -) | After the change | |||||||
| Quantity | Scale | Issuance of new shares | Bonus shares | Conversion of provident fund into shares | Others | Subtotal | Quantity | Scale | |
| I. Shares subject to selling restrictions | 12,994 | 0.0022% | -12,994 | -12,994 | 0 | 0.00% | |||
| 1. State shareholding | |||||||||
| 2. State-owned legal person shareholding | |||||||||
| 3. Other domestic shareholdings | 12,994 | 0.0022% | -12,994 | -12,994 | 0 | 0.00% | |||
| Including: domestic legal person shareholding | |||||||||
| Domestic natural person shareholding | 12,994 | 0.0022% | -12,994 | -12,994 | 0 | 0.00% | |||
| 4. Foreign shareholding | |||||||||
| Including: | |||||||||
| foreign legal person shareholding | |||||||||
| Foreign natural person shareholding | |||||||||
| II. Shares without selling restrictions | 602,749,602 | 99.9978% | 12,994 | 12,994 | 602,762,596 | 100.00% | |||
| 1. RMB ordinary shares | 338,895,156 | 56.2236% | 12,994 | 12,994 | 338,908,150 | 56.2258% | |||
| 2. Domestic-listed foreign shares | 263,854,446 | 43.7742% | 263,854,446 | 43.7742% | |||||
| 3. Overseas-listed foreign shares | |||||||||
| 4. Others | |||||||||
| III. Total number of shares | 602,762,596 | 100.00% | 0 | 0 | 602,762,596 | 100.00% |
Reasons for changes in shares?Applicable □Not applicableAt the end of the reporting period, Ms. Zhang Jie left her post for 6 months and her original term of office expired for 6 months,and her 17,325 A shares of the Company were all unlocked in accordance with relevant regulations.Approval status of changes in shares
□Applicable ?Not applicable
Transfer status of changes in shares
□Applicable ?Not applicable
The impact of changes in shares on basic earnings per share and diluted earnings per share, net assets per share attributable to theCompany's ordinary shareholders, and other financial indicators in the most recent year and the most recent period
□Applicable ?Not applicable
Other information that the Company deems necessary or that securities regulators require to be disclosed
□Applicable ?Not applicable
2. Changes in shares with selling restrictions
?Applicable □Not applicable
Unit: Share
| Name | Beginning number of restricted shares | Increase in restricted shares in the current period | Number of restricted shares lifted in the current period | Ending number of restricted shares | Reasons for sales restriction | Date of lifting sales restrictions |
| Zhang Jie | 12,994 | 0 | 12,994 | 0 | Ms. Zhang Jie used to be the Deputy General Manager of the Company, and her original term of office was until April 26, 2024. According to relevant regulations, part of the Company's shares held by her was restricted. | October 26, 2024 |
| Total | 12,994 | 0 | 12,994 | 0 | -- | -- |
II. Issuance and listing of securities
1. Securities issuance (excluding preferred shares) during the reporting period
□Applicable ?Not applicable
2. Explanation of changes in the Company's total number of shares and shareholder structure, andchanges in the Company's asset and liability structure
□Applicable ?Not applicable
3. Existing internal employee shares
□Applicable ?Not applicable
III. Shareholders and actual controllers
1. Number of the Company's shareholders and shareholding status
Unit: Share
| Total number of | 39,609 | Total number of | 40,424 | Total number of | 0 | Total number of preferred shareholders whose voting | 0 |
| ordinary shareholders at the end of the reporting period | ordinary shareholders at the end of the previous month before the annual report disclosure date | preferred shareholders whose voting right were restored at the end of the reporting period (if any) (see Note 8) | right were restored at the end of the previous month before the annual report disclosure date (if any) (see Note 8) |
Shareholding status of shareholders holding more than 5% of the shares or the top 10 shareholders (excluding shares lent through
refinancing)
| Name | Nature of shareholder | Shareholding ratio | Number of shares held at the end of the reporting period | Increases and decreases during the reporting period | Number of shares held with selling restrictions | Number of shares with selling restrictions | Pledge, marking or freezing | |
| Share status | Quantity | |||||||
| HONG KONG NAM HOI (INTERNATIONAL) LTD | Overseas legal person | 15.28% | 92,123,248 | 0 | 0 | 92,123,248 | Not applicable | 0 |
| Shenzhen Guangju Industrial Co., Ltd. | State-owned legal person | 12.22% | 73,666,824 | 0 | 0 | 73,666,824 | Not applicable | 0 |
| Shenzhen Energy Corporation | State-owned legal person | 10.80% | 65,106,130 | 0 | 0 | 65,106,130 | Not applicable | 0 |
| Zeng Ying | Domestic natural person | 1.19% | 7,159,600 | 0 | 0 | 7,159,600 | Not applicable | 0 |
| GUOTAI JUNAN SECURITIES（HONG KONG） LIMITED | Overseas legal person | 1.09% | 6,592,879 | 4,436,997 | 0 | 6,592,879 | Not applicable | 0 |
| Li Baoqin | Domestic natural person | 0.97% | 5,835,773 | 2,787,623 | 0 | 5,835,773 | Not applicable | 0 |
| China Merchants Securities (Hong Kong) Co., Ltd. | Overseas legal person | 0.90% | 5,438,154 | 107,300 | 0 | 5,438,154 | Not applicable | 0 |
| BOCI SECURITIES | Overseas legal person | 0.73% | 4,423,066 | -7,098,982 | 0 | 4,423,066 | Not applicable | 0 |
| LIMITED | |||||||||||
| LISHERYNZHANMING | Overseas natural person | 0.69% | 4,149,400 | 143,441 | 0 | 4,149,400 | Not applicable | 0 | |||
| Haitong International Securities Company Limited-Account Client | Overseas legal person | 0.65% | 3,908,357 | 0 | 0 | 3,908,357 | Not applicable | 0 | |||
| Strategic investors or general legal persons becoming the top 10 shareholders due to allotment of new shares (if any) (see Note 3) | None | ||||||||||
| Explanation of the above-mentioned shareholders' relationship or concerted actions | 1. Shenzhen Energy Corporation holds 100% equity in HONG KONG NAM HOI (INTERNATIONAL) LTD 2. The Company is unaware of whether the above-mentioned other public shareholders have any relationship or are persons acting in concert. | ||||||||||
| Explanation of the circumstances in which the above-mentioned shareholders involve entrusted voting right and abstention from voting right | None | ||||||||||
| Special note on the existence of a special repurchase account among the top 10 shareholders (if any) (see Note 10) | None | ||||||||||
| The shareholding situation of the top 10 shareholders with unrestricted tradable shares (excluding shares lent out through refinancing and senior executive/locked shares) | |||||||||||
| Name | Number of shares without selling restrictions held at the end of the reporting period | Type of shares | |||||||||
| Type of shares | Quantity | ||||||||||
| HONG KONG NAM HOI (INTERNATIONAL) LTD | 92,123,248 | Domestic listed foreign shares | 92,123,248 | ||||||||
| Shenzhen Guangju Industrial Co., Ltd. | 73,666,824 | RMB ordinary shares | 73,666,824 | ||||||||
| Shenzhen Energy Corporation | 65,106,130 | RMB ordinary shares | 65,106,130 | ||||||||
| Zeng Ying | 7,159,600 | Domestic listed foreign shares | 7,159,600 | ||||||||
| GUOTAI JUNAN SECURITIES（HONG KONG） LIMITED | 6,592,879 | Domestic listed foreign shares | 6,592,879 | ||||||||
| Li Baoqin | 5,835,773 | RMB ordinary shares | 2,790,000 | ||||||||
| Domestic listed foreign shares | 3,045,773 | ||||||||||
| China Merchants Securities (Hong Kong) Co., Ltd. | 5,438,154 | Domestic listed foreign shares | 5,438,154 | ||||||||
| BOCI SECURITIES LIMITED | 4,423,066 | Domestic listed foreign shares | 4,423,066 | ||||||||
| LISHERYNZHANMING | 4,149,400 | Domestic listed foreign shares | 4,149,400 | ||||||||
| Haitong International Securities Company Limited-Account Client | 3,908,357 | Domestic listed foreign shares | 3,908,357 | ||||||||
| Explanation of relationship or concerted action among the top 10 shareholders of tradable shares without selling restrictions, and between the top 10 shareholders of tradable shares without selling restrictions and the top 10 | 1. Shenzhen Energy Corporation holds 100% equity in HONG KONG NAM HOI (INTERNATIONAL) LTD 2. The Company is unaware of whether the above-mentioned other public shareholders have any relationship or are persons acting in concert. | ||||||||||
| shareholders | |
| Description of the top 10 ordinary shareholders' participation in margin trading and securities lending business (if any) (see Note 4) | None |
Participation of shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10 shareholders ofunrestricted tradable shares in refinancing business and lending shares
□Applicable ?Not applicable
Changes of the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares compared with the previous perioddue to refinancing lending/repayment
□Applicable ?Not applicable
Whether the Company's top 10 ordinary shareholders and the top 10 ordinary shareholders without selling restrictions conductedagreed repurchase transactions during the reporting period
□Yes ?No
The the Company's top 10 ordinary shareholders and the top 10 ordinary shareholders without selling restrictions did not engage inany agreed repurchase transactions during the reporting period.
2. Information on the Company's controlling shareholder
Nature of controlling shareholder: noneType of controlling shareholders: noneExplanation that the Company has no controlling shareholderCurrently, the Company has no controlling shareholder as defined in the Company Law and Stock Listing Rules.Changes in controlling shareholders during the reporting period
□Applicable ?Not applicable
The Company's controlling shareholder did not change during the reporting period.
3. The Company's actual controller and its persons acting in concert
Nature of actual controller: no actual controllerType of actual controller: do not existExplanation of the fact that the Company has no actual controllerAt present, the Company does not meet the criteria for identifying actual controller of a listed company as stipulated in theCompany Law, the Measures for the Administration of Acquisition of Listed Companies and the Stock Listing Rules.Whether there are shareholders with a shareholding ratio of more than 10% at the Company's ultimate controlling level
□Yes ?No
□Shareholders holding more than 5% of the Company's ultimate controlling level □Shareholders holding less than 5% of totalcontrolling level of the CompanyChanges in actual controller during the reporting period
□Applicable ?Not applicable
The Company's actual controller did not change during the reporting period.Block diagram of property rights and control relationship between the Company and the actual controller
Actual controller controls the Company through trust or other asset management methods
□Applicable ?Not applicable
4. Cumulative number of pledged shares by the Company's controlling shareholder or largestshareholder and persons acting in concert accounts for 80% of the Company's shares held by them.
□Applicable ?Not applicable
5. Other legal person shareholders holding more than 10% of the shares
?Applicable □Not applicable
| Name of legal person shareholder | Legal representative/company principal | Date of establishment | Registered capital | Main business or management activities |
| HONG KONG NAM HOI (INTERNATIONAL) LTD | Kong Guoliang | May 14, 1985 | HKD 15.33 million | Investment holdings |
| Shenzhen Guangju Industrial Co., Ltd. | Deng Zhenwu | May 31, 1989 | RMB 111.11 million | Establishing industries and investing in power (specific projects will be declared separately), etc. |
| Shenzhen Energy Corporation | Kong Guoliang | July 15, 1985 | RMB 230,971,224 | Development, production, purchase and sale of various conventional energy sources (including electricity, heat, coal, oil and gas) and new energy sources |
Shenzhen State-owned Assets Supervision andAdministration Commission
| Shenzhen State-owned Assets Supervision and Administration Commission | Shenzhen Nanshan District Finance Bureau |
Shenzhen Capital Holdings Co., Ltd
Shenzhen Capital Holdings Co., LtdShenzhen Shenhuitong Investment Holdings
Co., Ltd
Shenzhen Shenhuitong Investment Holdings
Co., Ltd
Shenzhen Kehuitong Investment Holdings
Co., Ltd
Shenzhen Kehuitong Investment Holdings
Co., Ltd
Shenzhen Huitong Financial Holding FundInvestment Co., Ltd
Shenzhen Huitong Financial Holding FundInvestment Co., Ltd
Shenzhen Energy Corporation
Shenzhen Energy CorporationShenzhen Energy (H.K.) International Limited
Shenzhen Energy (H.K.) International LimitedHong Kong Nam Hoi (International)
Limited
Hong Kong Nam Hoi (International)
Limited
Shenzhen Guangju Investment Holdings (Group) Co.,
Ltd
Shenzhen Guangju Investment Holdings (Group) Co.,
Ltd
Shenzhen Guangju Energy Co., Ltd.
Shenzhen Guangju Energy Co., Ltd.Shenzhen Guangju Industrial Co., Ltd.
Shenzhen Guangju Industrial Co., Ltd.Shenzhen Nanshan Power Co., Ltd.
6. Shareholding restrictions and reductions of controlling shareholders, actual controllers, reorganizersand other commitment entities
□Applicable ?Not applicable
IV. Specific implementation of share repurchases during the reporting period
Progress of implementation in share repurchase
□Applicable ?Not applicable
Implementation progress of reducing repurchased shares in centralized bidding transaction method
□Applicable ?Not applicable
Section VIII Preferred shares
□Applicable ?Not applicable
There were no preferred shares in the Company during the reporting period.
Section IX Bonds
□Applicable ?Not applicable
Section X Financial report
| Type of audit opinion | Unqualified opinion |
| Signing date of auditor's report | April 21, 2025 |
| Name of audit agency | Lixinzhonglian CPAS (Special General Partnership) |
| Auditor's Report No. | LXZLSZ [2025] No. D-0857 |
| Name of certified public accountant | Cao Wei, Li Mincong |
Auditor's ReportLXZLSZ [2025] No. D-0857To shareholders of Shenzhen Nanshan Power Co., Ltd.,I. Audit opinionsWe have audited the accompanying financial statements of Shenzhen Nanshan Power Co., Ltd.(hereinafter referred to as "Shenzhen Nanshan Power"), which comprise the consolidated andparent company's balance sheet as at December 31, 2024, the consolidated and parent company'sincome statement, the consolidated and parent company's statement of cash flows, theconsolidated and parent company's statement of changes in shareholders' equity for the year thenended, and the notes to the financial statements.In our opinion, the financial statements attached are prepared, in all material respects, inaccordance with the Accounting Standards for Business Enterprises, and present fairly theconsolidated and parent company's financial positions of Shenzhen Nanshan Power as atDecember 31, 2024 and the consolidated and parent company's operating results and cash flowsfor the year then ended.II. Basis for OpinionWe conducted our audit in accordance with Auditing Standards for Certified Public Accountantsin China. Our responsibilities under those standards are further described in the "Auditors'Responsibilities for the Audit of the Financial Statements" of this auditor's report. According tothe Code of Ethics for Certified Public Accountants of China, we are independent of ShenzhenNanshan Power, and we have fulfilled other responsibilities in the aspect of code of ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion.III. Key audit mattersKey audit matters are those matters that, in our professional judgment, are of most significance inour audit of the financial statements for the current period. These matters were addressed in thecontext of our audit of the financial statements as a whole, and in forming our opinion thereon,and we do not provide a separate opinion on these matters.
| Key audit matters | How these matters were addressed in the audit |
| (I) Revenue recognition | |
| For details accounting policies for revenue recognition and analysis of revenue, please consolidated financial statements to accounting policies described in Note (XXVIII) of "III. Significant accounting policies and accounting estimates" of the Notes to the Consolidated Financial Statements and Note (XXXIX) of "V. Notes to consolidated financial statements". In 2024, Shenzhen Nanshan Power's consolidated operating revenue of RMB 442,971,955.85, with a decrease of 24.89% from the previous period. As operating revenue is one of the Company's key performance indicators and there is an inherent risk that the time point of revenue recognition may be manipulated to meet specific goals or expectations, we identified recognition of operating revenue as a key audit matter. | The audit procedures related to the recognition of operating revenue include the following procedures: 1. Evaluating the design and operating effectiveness of key internal control related to revenue recognition; 2. For power production and sales revenue, we obtained and checked the electricity sales contract and settlement statements, and confirmed the balance of accounts receivable at the end of the period and the current operating revenue, and confirmed the authenticity of the electricity sales revenue in combination with the post-period accounts receivable; 3. For revenue from integrated energy services, we obtained and reviewed the Company's accounting policies, understood and evaluated the management's method of determining the completion progress, evaluated the rationality of time point of revenue recognition, and determined the rationality of the project completion progress by checking external evidence such as project contracts, project delivery, acceptance settlement, etc., and confirmed the authenticity and completeness of revenue from integrated energy services in combination with the confirmation reply and post-period collection; 4. Performing substantive analysis procedures on operating revenue and gross margin to determine the rationalit |
| y of changes in operating revenue and gross margin during the current period; 5. Performing a cut-off testing on operating revenue to evaluate whether operating revenue has been included in the appropriate accounting period. 6. Checking whether information related to operating revenue has been properly reported in the financial statements | |
| (II) Asset impairment | |
| Please refer to accounting policies described in Notes (XI), (XII) and (XXII) of "III. Significant accounting policies and accounting estimates " in the notes to the financial statements. As of December 31, 2024, the total book value of inventories, investments in other equity instruments, fixed assets and construction in progress in the consolidated financial statements of the Company is RMB 893,219,934.18, accounting for 44.38% of the total consolidated assets, which is an important part of the assets of the Company. The Shenzhen Nanshan Power's management conducts an impairment test on inventories and evaluates whether there are any indications of impairment in the above-mentioned other assets. If indications of impairment are identified, the management calculates recoverable amount of the individual asset or the asset group to which it belongs, and conducts impairment test on it by comparing | Our audit procedures regarding asset impairment include: 1. Evaluating and testing the design and implementation effectiveness of internal control related to asset impairment; 2. Obtaining accounting policies for asset impairment, check whether the provision method of asset impairment complies with regulations, and obtain and review the details of provision for asset impairment made by the management; 3. Supervising the inventories, checking the quantity and status of the inventories, obtaining the latest financial statements and other information of the investees, understanding the operating conditions of the investees, selecting samples to implement the supervision procedure of long-term assets to understand whether the assets have problems such as backward technology, long-term idleness, and low load rate; |
| recoverable amount with book value. Since Shenzhen Nanshan Power's management needs to use significant accounting estimates and judgments when determining the estimated recoverable amount of assets, which have significant affected amount, we determine the asset impairment loss as a key audit matter. | 3. Using the work of external appraiser experts to conduct a comprehensive evaluation of the external appraiser's qualifications, competencies, assessment methods and various parameters used in the assessment. |
| (III) Recognition of income from relocation compensation | |
| For the state-owned land use rights of three parcels located in Hengmen Industrial Zone, Nanlang Sub-district, Cuiheng New District, Zhongshan City, belonging to Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd., a subsidiary of Shenzhen Nanshan Power, Plot A was acquired and reserved with the transfer procedures with Cuiheng New District Management Committee, Zhongshan City. Shenzhen Nanshan Power recognized the land acquisition and reservation compensation price of RMB 224.7116 million for Plot A in 2024. The final recognized cost expenditure for Plot A was RMB 61.6930 million, and the net income from the land acquisition was RMB 163.0186 million. Due to the significant amount of relocation compensation, which has a significant impact on the operating results of Shennan Power in 2024, we have identified the recognition of relocation compensation income as a key audit matter. | We have mainly performed the following audit procedures for the recognition of income from relocation compensation: 1. By comparing the Accounting Standards for Business Enterprises No. 42 - Non-current Assets Held for Sale, Disposal Groups and Discontinued Operations and other accounting standards and application guidelines, as well as the CSRC's Guidelines for the Application of Regulatory Rules - Accounting No. 3, analyze whether the relocation compensation income recognition policy adopted by Shenzhen Nanshan Power is appropriate. 2. Obtaining and checking the land acquisition and storage contract, analyzing and check the contract terms, and reviewing the agreement on the rights and obligations of the parties to the contract, so as to check the accuracy of the time point of loss of control of the disposed assets. 3. Inquiring and communicating with the Shenzhen Nanshan Power's management (hereinafter referred to as the "management") to understand the relocation process and the performance of Shenzhen Nanshan Power's obligat |
IV. Other informationShenzhen Nanshan Power's management (hereinafter referred to as the "management") isresponsible for other information. Other information includes information included in the relevantdocuments constituting the 2024 Annual Report, but excludes the financial statements and ourauditor's report.Our opinion on the financial statements does not cover the other information and we do not andwill not express any form of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the otherinformation identified above and, in doing so, consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in the audit, orotherwise appears to be materially misstated.If we determine, based on the work we have performed, that other information is materiallymisstated, we should report that fact. We have nothing to report in this regard.V. Responsibilities of the Management and Those Charged with Governance for theFinancial Statements
The management is responsible for preparing the financial statements in accordance with therequirements of the Accounting Standards for Business Enterprises to achieve a fair presentation,and for designing, implementing and maintaining internal control that is necessary to ensure thatthe financial statements are free from material misstatements, whether due to frauds or errors.In preparing the financial statements, the Management is responsible for assessing the ShenzhenNanshan Power's going-concern ability, disclosing the matters related to going concern and usingthe going-concern assumption unless the management either intends to liquidate ShenzhenNanshan Power or to cease operations, or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing Shenzhen Nanshan Power'sfinancial reporting process.VI. Auditors' Responsibilities for the Audit of the Financial StatementsOur objectives are to obtain reasonable assurance about whether the financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue an auditor'sreport that includes our opinion. Reasonable assurance is a high level of assurance, but is not aguarantee that an audit conducted in accordance with the audit standards will always detect amaterial misstatement when it exists. Misstatements may arise from fraud or error and aregenerally considered material if separate or aggregated misstatements are reasonably expected topossibly influence the economic decisions made by the users of financial statements on the basisof these financial statements.In the process of performing audit work in accordance with the auditing standards, we useprofessional judgment and maintain professional skepticism. Meanwhile, we also:
(1) identifying and assessing the risks of material misstatement of the financial statements,whether due to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The riskof not detecting a material misstatement resulting from fraud is higher than for one resulting fromerror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or theoverride of internal control.
(2) understanding internal control related to the audit in order to design audit procedures that areappropriate in the circumstances.
(3) evaluating the appropriateness of accounting policies used by and the reasonableness ofaccounting estimates and related disclosures made by the management.
(4) drawing conclusions on the appropriateness of the management's use of going concern basis.Meanwhile, according to the audit evidence acquired, the management comes to conclusion onmatters which may cause significant misgiving against the going-concern ability of ShenzhenNanshan Power or whether the said situation exists material uncertainty or not. If we concludethat a material uncertainty exists, auditing standards require us to draw the attention of users ofthe financial statements to the related disclosures in financial statements in our auditor's report; Ifsuch disclosures are inadequate, we should modify our opinion. Our conclusions are based on theinformation available as of the date of our auditor's report. However, future events or conditions
may cause Shenzhen Nanshan Power to cease to continue as a going concern.
(5) evaluating the overall presentation, structure and content of financial statements, and evaluatewhether financial statements fairly reflect relevant transactions and events.
(6) obtaining sufficient appropriate audit evidence regarding the financial information of theentities or business activities within Shenzhen Nanshan Power to express an opinion on thefinancial statements. We are responsible for directing, supervising and performing group auditsand take full responsibility for our audit opinions.We communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied withrelevant ethical requirements regarding independence, and to communicate with them allrelationships and other matters that may reasonably be thought to bear on our independence, andwhere applicable, related safeguards.From the matters communicated with those charged with governance, we determine those mattersthat are of most significance in the audit of the financial statements of the current period and aretherefore the key audit matters. We describe these matters in our auditor's report, unless thesematters are forbidden by laws and regulations to be disclosed or in extremely rare circumstances,when the negative impact arising from the reasonable and expected communication about acertain matter in a audit report exceeds the public interest benefits arising therefrom, wedetermine that such matter should not be communicated in the auditors' report.
| Lixinzhonglian CPAS (Special General Partnership) | Certified Public Accountant of China: Cao Wei |
| (Engagement Partner) |
Certified Public Accountant of China: Li Mincong
Tianjin, China April 21, 2025
Financial Statements
1. Consolidated balance sheet
Prepared by: Shenzhen Nanshan Power Co., Ltd.
Unit: RMB
| Item | December 31, 2024 | January 1, 2024 |
| Current assets: | ||
| Monetary funds | 478,979,221.66 | 316,188,782.49 |
| Balances with clearing companies | ||
| Loans to banks and other financial institutions | ||
| Financial assets held for trading | 226,000,000.00 | |
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 67,817,025.91 | 111,975,251.10 |
| Receivables financing | ||
| Advances to suppliers | 19,062,352.04 | 26,869,175.59 |
| Premiums receivable | ||
| Reinsurance accounts receivable | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 131,831,575.62 | 19,233,117.52 |
| Including: interest receivable | ||
| Dividends receivable | ||
| Financial assets purchased under resale agreements | ||
| Inventories | 80,234,374.79 | 86,158,251.16 |
| Contract assets | 95,580.68 | 88,000.00 |
| Assets held for sale | 24,582,784.59 | |
| Non-current assets due within one year | ||
| Other current assets | 285,528,539.22 | 232,865,968.63 |
| Total current assets | 1,088,131,454.51 | 1,019,378,546.49 |
| Non-current assets: | ||
| Issuance of loans and advances | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 90,587,521.44 | 90,001,176.04 |
| Other investments in equity instruments | 354,798,054.57 | 300,615,000.00 |
| Other non-current financial assets | ||
| Investment properties | 1,498,009.84 | 1,664,566.60 |
| Fixed assets | 451,203,790.97 | 571,482,734.35 |
| Construction in progress | 6,983,713.85 | 3,448,855.10 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 6,160,020.43 | 2,266,946.42 |
| Intangible assets | 1,349,731.81 | 19,285,629.03 |
| Development expenses | ||
| Goodwill | ||
| Long-term deferred expenses | 5,802,861.77 | 3,891,832.93 |
| Deferred tax assets | 625,000.00 | 1,172,366.49 |
| Other non-current assets | 5,596,476.40 | 36,157,735.24 |
| Total non-current assets | 924,605,181.08 | 1,029,986,842.20 |
| Total assets | 2,012,736,635.59 | 2,049,365,388.69 |
| Current liabilities: | ||
| Short-term borrowings | 268,615,009.19 | 341,237,886.72 |
| Loans from the Central Bank | ||
| Loans from banks and other financial institutions | ||
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 14,022,157.61 | 4,342,166.50 |
| Advances from customers | ||
| Contract liabilities | 50,000.00 | |
| Financial assets sold under repurchase agreements | ||
| Customer bank deposits and due to banks and other financial institutions | ||
| Receivings from vicariously traded securities | ||
| Receivings from vicariously underwritten securities | ||
| Employee compensation payable | 16,052,879.47 | 46,238,982.57 |
| Taxes payable | 14,348,908.04 | 3,089,330.47 |
| Other payables | 15,685,234.29 | 13,973,447.42 |
| Including: interest payable | ||
| Dividends payable | ||
| Handling charges and commissions | ||
| Reinsurance accounts payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 4,466,835.32 | 3,926,326.45 |
| Other current liabilities | 107,922,984.82 | |
| Total current liabilities | 441,164,008.74 | 412,808,140.13 |
| Non-current liabilities: | ||
| Reserves for insurance contract |
| Long-term borrowings | 58,829,426.30 | |
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 2,125,910.18 | |
| Long-term payables | ||
| Long-term employee compensations payable | ||
| Estimated liabilities | 15,000,000.00 | |
| Deferred income | 61,522,875.97 | 67,869,348.07 |
| Deferred tax liabilities | ||
| Other non-current liabilities | 104,045,112.54 | |
| Total non-current liabilities | 63,648,786.15 | 245,743,886.91 |
| Total liabilities | 504,812,794.89 | 658,552,027.04 |
| Owners' equity: | ||
| Equity | 602,762,596.00 | 602,762,596.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual bonds | ||
| Capital reserve | 362,770,922.10 | 362,770,922.10 |
| Less: treasury shares | ||
| Other comprehensive income | 1,683,054.57 | -2,500,000.00 |
| Special reserve | ||
| Surplus reserve | 332,908,397.60 | 332,908,397.60 |
| General risk reserve | ||
| Undistributed profits | 185,255,604.81 | 163,346,776.24 |
| Total equity attributable to the owners of the parent company | 1,485,380,575.08 | 1,459,288,691.94 |
| Minority interests | 22,543,265.62 | -68,475,330.29 |
| Total owners' equity | 1,507,923,840.70 | 1,390,813,361.65 |
| Total liabilities and owners' equity | 2,012,736,635.59 | 2,049,365,388.69 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the FinanceDepartment: Lin Xiaojia
2. Parent Company's Balance Sheet
Unit: RMB
| Item | December 31, 2024 | January 1, 2024 |
| Current assets: | ||
| Monetary funds | 408,963,344.55 | 288,209,271.60 |
| Financial assets held for trading | 226,000,000.00 | |
| Derivative financial assets |
| Notes receivable | ||
| Accounts receivable | 26,641,173.11 | 26,981,407.91 |
| Receivables financing | ||
| Advances to suppliers | 17,256,415.27 | 15,384,546.45 |
| Other receivables | 614,157,681.93 | 714,553,901.02 |
| Including: interest receivable | ||
| Dividends receivable | ||
| Inventories | 76,391,256.94 | 79,966,182.19 |
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 236,196,142.37 | 225,282,791.79 |
| Total current assets | 1,379,606,014.17 | 1,576,378,100.96 |
| Non-current assets: | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 568,752,639.83 | 495,642,748.40 |
| Other investments in equity instruments | 110,615,000.00 | 160,615,000.00 |
| Other non-current financial assets | ||
| Investment properties | ||
| Fixed assets | 351,782,033.61 | 270,785,343.05 |
| Construction in progress | 1,654,419.67 | 2,267,334.95 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 6,160,020.43 | 2,266,946.42 |
| Intangible assets | 1,234,568.04 | 159,361.27 |
| Development expenses | ||
| Goodwill | ||
| Long-term deferred expenses | 5,802,861.77 | 699,249.25 |
| Deferred tax assets | ||
| Other non-current assets | 857,135.84 | 857,135.84 |
| Total non-current assets | 1,046,858,679.19 | 933,293,119.18 |
| Total assets | 2,426,464,693.36 | 2,509,671,220.14 |
| Current liabilities: | ||
| Short-term borrowings | 106,590,219.19 | 341,237,886.72 |
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | 132,000,000.00 | |
| Accounts payable | 7,836,364.14 | 896,652.87 |
| Advances from customers | ||
| Contract liabilities | ||
| Employee compensation payable | 10,343,784.13 | 7,012,680.38 |
| Taxes payable | 4,194,761.79 | 1,413,720.40 |
| Other payables | 249,849,964.57 | 203,625,916.75 |
| Including: interest payable | ||
| Dividends payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 4,466,835.32 | 3,926,326.45 |
| Other current liabilities | ||
| Total current liabilities | 515,281,929.14 | 558,113,183.57 |
| Non-current liabilities: | ||
| Long-term borrowings | 58,829,426.30 | |
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 2,125,910.18 | |
| Long-term payables | ||
| Long-term employee compensations payable | ||
| Estimated liabilities | ||
| Deferred income | 60,705,055.43 | 48,280,623.30 |
| Deferred tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 62,830,965.61 | 107,110,049.60 |
| Total liabilities | 578,112,894.75 | 665,223,233.17 |
| Owners' equity: | ||
| Equity | 602,762,596.00 | 602,762,596.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual bonds | ||
| Capital reserve | 289,963,039.70 | 289,963,039.70 |
| Less: treasury shares | ||
| Other comprehensive income | ||
| Special reserve | ||
| Surplus reserve | 332,908,397.60 | 332,908,397.60 |
| Undistributed profits | 622,717,765.31 | 618,813,953.67 |
| Total owners' equity | 1,848,351,798.61 | 1,844,447,986.97 |
| Total liabilities and owners' equity | 2,426,464,693.36 | 2,509,671,220.14 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the FinanceDepartment: Lin Xiaojia
3. Consolidated Income Statement
Unit: RMB
| Item | Year 2024 | Year 2023 |
| I. Total operating revenue | 442,971,955.85 | 589,780,190.71 |
| Including: operating revenue | 442,971,955.85 | 589,780,190.71 |
| Interest income | ||
| Premiums earned | ||
| Handling charges and commission income | ||
| II. Total operating costs | 546,888,840.95 | 685,824,056.18 |
| Including: operating costs | 415,446,732.39 | 581,442,543.98 |
| Interest costs | ||
| Handling charges and commission expenses | ||
| Surrender value | ||
| Net amount of compensation payout | ||
| Net amount withdrawn for insurance contract reserves | ||
| Policy dividends | ||
| Reinsurance costs | ||
| Taxes and surcharges | 4,621,861.58 | 4,799,616.56 |
| Selling and distribution expenses | 3,155,604.58 | 2,831,748.65 |
| G&A expenses | 95,507,099.03 | 58,330,596.87 |
| R&D expenses | 21,341,778.27 | 26,839,912.74 |
| Financial expenses | 6,815,765.10 | 11,579,637.38 |
| Including: interest expenses | 11,829,545.09 | 18,665,115.07 |
| Interest income | 5,185,764.60 | 7,358,119.93 |
| Plus: other income | 6,867,023.46 | 44,505,889.51 |
| Investment income (losses expressed with "-") | 84,488,299.90 | 34,997,898.47 |
| Including: investment income from associates and joint ventures | 6,326,077.76 | 7,719,627.80 |
| Gains from derecognition of financial assets measured at amortized costs | ||
| Exchange gains (losses expressed with "-") | ||
| Net exposure hedging gains (losses expressed with "-") | ||
| Gains from fair value changes (losses expressed with "-") | ||
| Losses from credit impairment (losses expressed with "-") | -11,381,410.65 | 1,190,348.40 |
| Asset impairment loss (losses expressed with "-") | -66,389,539.68 | -162,985.78 |
| Gains from disposal of assets (losses expressed with "-") | 163,529,971.97 | 1,886,136.92 |
| III. Operating profit (losses expressed with "-") | 73,197,459.90 | -13,626,577.95 |
| Plus: non-operating revenue | 553,068.40 | 11,687,001.25 |
| Less: non-operating expenses | 135,334.48 | 66,116.23 |
| IV. Total profit (total losses expressed with "-") | 73,615,193.82 | -2,005,692.93 |
| Less: income tax expenses | 9,687,769.34 | |
| V. Net profit (losses expressed with "-") | 63,927,424.48 | -2,005,692.93 |
| (I) Classification by business continuity | 63,927,424.48 | -2,005,692.93 |
| 1. Net profit from continuing operations (net losses expressed with "-") | 63,927,424.48 | -2,005,692.93 |
| 2. Net profit from discontinued operations (net losses expressed with "-") | ||
| (II) Classification by ownership | 63,927,424.48 | -2,005,692.93 |
| 1. Net profit attributable to shareholders of the parent company | 21,908,828.57 | 4,158,797.10 |
| 2. Minority interest income | 42,018,595.91 | -6,164,490.03 |
| VI. Net after-tax amount of other comprehensive income | 4,183,054.57 | |
| Net after-tax amount of other comprehensive income attributable to owners of parent company | 4,183,054.57 | |
| (I) Other comprehensive income that cannot be reclassified into profit or loss | 4,183,054.57 | |
| 1. Remeasurement of changes in defined benefit plans | ||
| 2. Other comprehensive income that cannot be transferred to profit or loss under the equity method | ||
| 3. Fair value changes of investments in other equity instruments | 4,183,054.57 | |
| 4. Fair value changes of the enterprise's own credit risk | ||
| 5. Others | ||
| (II) Other comprehensive income that will be reclassified to profit or loss | ||
| 1. Other comprehensive income that can be transferred to profit or loss under the equity method | ||
| 2. Fair value changes of other debt investments | ||
| 3. Amount of financial assets reclassified and included in other comprehensive income | ||
| 4. Provision for credit impairment of other debt investments | ||
| 5. Cash flow hedging reserve | ||
| 6. Differences arising from foreign currency financial statements | ||
| 7. Others | ||
| Net after-tax amount of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | 68,110,479.05 | -2,005,692.93 |
| Total comprehensive income attributable to owners of the parent company | 26,091,883.14 | 4,158,797.10 |
| Total comprehensive income attributable to minority shareholders | 42,018,595.91 | -6,164,490.03 |
| VIII. Earnings per share | ||
| (I) Basic earnings per share | 0.0363 | 0.0069 |
| (II) Diluted earnings per share | 0.0363 | 0.0069 |
For business combination under common control that occurred in the current period, the net profit realized by the combined partybefore the combination was: RMB , and the net profit realized by the combined party in the previous period was: RMB .Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the FinanceDepartment: Lin Xiaojia
4. Parent company's income statement
Unit: RMB
| Item | Year 2024 | Year 2023 |
| I. Operating revenue | 379,476,727.51 | 391,649,949.09 |
| Less: operating costs | 342,873,813.14 | 363,689,532.32 |
| Taxes and surcharges | 2,310,988.15 | 2,280,457.39 |
| Selling and distribution expenses | 1,051,335.73 | 963,163.50 |
| G&A expenses | 64,842,087.48 | 33,986,762.85 |
| R&D expenses | 16,117,457.80 | 13,244,617.52 |
| Financial expenses | -10,921,290.44 | -14,764,469.81 |
| Including: interest expenses | 10,825,393.90 | 14,182,249.86 |
| Interest income | 22,013,162.19 | 29,605,337.48 |
| Plus: other income | 5,471,255.16 | 30,169,947.71 |
| Investment income (losses expressed with "-") | 35,323,947.41 | 32,562,187.79 |
| Including: investment income from associates and joint ventures | 6,563,378.70 | 6,966,316.30 |
| Income from derecognition of financial assets measured at amortized costs (losses expressed with "-") | ||
| Net exposure hedging gains (losses expressed with "-") | ||
| Gains from fair value changes (losses expressed with "-") | ||
| Losses from credit impairment (losses expressed with "-") | 1,105,348.40 | |
| Asset impairment loss (losses expressed with "-") | -718,034.64 | - |
| Gains from disposal of assets (losses expressed with "-") | 295,289.14 | 1,749,289.52 |
| II. Operating profit (losses expressed with "-") | 3,574,792.72 | 57,836,658.74 |
| Plus: non-operating revenue | 453,068.40 | 4,287,730.08 |
| Less: non-operating expenses | 124,049.48 | 58,115.11 |
| III. Total profit (total losses expressed with "-") | 3,903,811.64 | 62,066,273.71 |
| Less: income tax expenses | ||
| IV. Net profit (net losses expressed with "-") | 3,903,811.64 | 62,066,273.71 |
| (I) Net profit from continued operations (net losses expressed with "-") | 3,903,811.64 | 62,066,273.71 |
| (II) Net profit from discontinued operations (net losses expressed with "-") | ||
| V. Net of tax of other comprehensive income | ||
| (I) Other comprehensive income that cannot be reclassified into profit or loss | ||
| 1. Remeasurement of changes in defined benefit plans | ||
| 2. Other comprehensive income that cannot be transferred to profit or loss under the equity method | ||
| 3. Fair value changes of investments in other equity instruments | ||
| 4. Fair value changes of the enterprise's own credit risk | ||
| 5. Others |
| (II) Other comprehensive income that will be reclassified to profit or loss | ||
| 1. Other comprehensive income that can be transferred to profit or loss under the equity method | ||
| 2. Fair value changes of other debt investments | ||
| 3. Amount of financial assets reclassified and included in other comprehensive income | ||
| 4. Provision for credit impairment of other debt investments | ||
| 5. Cash flow hedging reserve | ||
| 6. Differences arising from foreign currency financial statements | ||
| 7. Others | ||
| VI. Total comprehensive income | 3,903,811.64 | 62,066,273.71 |
| VII. Earnings per share | ||
| (I) Basic earnings per share | 0.0065 | 0.1030 |
| (II) Diluted earnings per share | 0.0065 | 0.1030 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the FinanceDepartment: Lin Xiaojia
5. Consolidated statement of cash flows
Unit: RMB
| Item | Year 2024 | Year 2023 |
| I. Cash flows from operating activities: | ||
| Cash received from sales of goods and rendering of services | 531,827,063.92 | 693,869,206.44 |
| Net increase in customer bank deposits and due to banks and other financial institutions | ||
| Net increase in borrowings from the Central Bank | ||
| Net increase in borrowings from banks and other financial institutions | ||
| Cash received from premiums from the original insurance contract | ||
| Net cash received from reinsurance business | ||
| Net increase in policyholder deposits and investments | ||
| Cash received from interest, handling charges and commissions | ||
| Net increase in borrowings from banks and other financial institutions | ||
| Net increase in funds from repurchase business | ||
| Net cash received from vicariously traded securities | ||
| Tax refunds received | ||
| Other cash received related to operating activities | 20,645,841.50 | 45,771,867.13 |
| Sub-total of cash inflows from operating activities | 552,472,905.42 | 739,641,073.57 |
| Cash paid for purchase of goods and acceptance of services | 384,674,207.34 | 661,135,671.43 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits with the Central Bank and interbank funds |
| Cash paid for compensation for the original insurance contract | ||
| Net increase in loans to banks and other financial institutions | ||
| Cash paid for interest, handling charges and commissions | ||
| Cash paid for policy dividends | ||
| Cash paid to and on behalf of employees | 111,037,016.22 | 110,624,945.12 |
| Taxes and fees paid | 29,330,485.19 | 31,928,707.60 |
| Payments of other cash related to operating activities | 65,066,962.72 | 36,323,726.34 |
| Sub-total of cash outflows from operating activities | 590,108,671.47 | 840,013,050.49 |
| Net cash flows from operating activities | -37,635,766.05 | -100,371,976.92 |
| II. Cash flows from investing activities: | ||
| Recovery of cash received from investment | ||
| Cash received from investment income | 5,517,908.37 | 24,318,744.60 |
| Net cash recovered from disposal of fixed assets, intangible assets and other long-term assets | 77,304,322.46 | 104,554,420.00 |
| Net cash received from disposal of subsidiaries and other business units | 57,632,411.85 | |
| Other cash received relating to investing activities | 452,000,000.00 | 620,355,020.37 |
| Sub-total of cash inflows from investing activities | 592,454,642.68 | 749,228,184.97 |
| Cash paid for the acquisition and construction of fixed assets, intangible assets and other long-term assets | 16,298,619.89 | 10,145,320.80 |
| Cash paid for investments | 50,000,000.00 | |
| Net increase in pledge loans | ||
| Net cash paid for acquisition of subsidiaries and other business units | ||
| Payments of other cash related to investing activities | 226,000,000.00 | 446,393,066.79 |
| Sub-total of cash outflows from investing activities | 292,298,619.89 | 456,538,387.59 |
| Net cash flows from investing activities | 300,156,022.79 | 292,689,797.38 |
| III. Cash flows from financing activities: | ||
| Cash received from absorption of investments | 49,000,000.00 | |
| Including: cash received by subsidiaries from absorption of minority shareholders' investments | ||
| Cash received from acquisition of borrowings | 435,026,209.56 | 421,093,926.90 |
| Other cash received related to financing activities | ||
| Sub-total of cash inflows from financing activities | 484,026,209.56 | 421,093,926.90 |
| Cash paid for debt repayment | 571,104,234.83 | 933,281,007.65 |
| Cash paid for distribution of dividends, profits or interest payments | 8,221,444.61 | 11,184,721.21 |
| Including: dividends and profits paid by subsidiaries to minority shareholders | ||
| Payments of other cash related to financing activities | 6,927,038.90 | 6,314,826.00 |
| Sub-total of cash outflows from financing activities | 586,252,718.34 | 950,780,554.86 |
| Net cash flows from financing activities | -102,226,508.78 | -529,686,627.96 |
| IV. Impact of fluctuation in exchange rate on cash and cash equivalents | 38,454.14 | 82,055.00 |
| V. Net increase in cash and cash equivalents | 160,332,202.10 | -337,286,752.50 |
| Plus: beginning balance of cash and cash equivalents | 310,734,919.56 | 648,021,672.06 |
| VI. Ending balance of cash and cash equivalents | 471,067,121.66 | 310,734,919.56 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the FinanceDepartment: Lin Xiaojia
6. Parent company's statement of cash flows
Unit: RMB
| Item | Year 2024 | Year 2023 |
| I. Cash flows from operating activities: | ||
| Cash received from sales of goods and rendering of services | 474,669,435.32 | 585,940,800.94 |
| Tax refunds received | - | - |
| Other cash received related to operating activities | 207,618,244.62 | 101,359,126.91 |
| Sub-total of cash inflows from operating activities | 682,287,679.94 | 687,299,927.85 |
| Cash paid for purchase of goods and acceptance of services | 305,890,582.62 | 466,366,789.52 |
| Cash paid to and on behalf of employees | 79,309,098.79 | 66,128,967.09 |
| Taxes and fees paid | 20,426,634.39 | 16,336,435.27 |
| Payments of other cash related to operating activities | 83,733,542.41 | 232,370,081.08 |
| Sub-total of cash outflows from operating activities | 489,359,858.21 | 781,202,272.96 |
| Net cash flows from operating activities | 192,927,821.73 | -93,902,345.11 |
| II. Cash flows from investing activities: | ||
| Recovery of cash received from investment | ||
| Cash received from investment income | 5,517,908.37 | 22,636,345.42 |
| Net cash recovered from disposal of fixed assets, intangible assets and other long-term assets | 471,400.00 | 4,770.62 |
| Net cash received from disposal of subsidiaries and other business units | - | |
| Other cash received relating to investing activities | 626,093,917.54 | 746,010,220.37 |
| Sub-total of cash inflows from investing activities | 632,083,225.91 | 768,651,336.41 |
| Cash paid for the acquisition and construction of fixed assets, intangible assets and other long-term assets | 1,597,378.94 | 9,955,363.27 |
| Cash paid for investments | 50,000,000.00 | - |
| Net cash paid for acquisition of subsidiaries and other business units | - | |
| Payments of other cash related to investing activities | 252,170,000.00 | 464,000,000.00 |
| Sub-total of cash outflows from investing activities | 303,767,378.94 | 473,955,363.27 |
| Net cash flows from investing activities | 328,315,846.97 | 294,695,973.14 |
| III. Cash flows from financing activities: | ||
| Cash received from absorption of investments | ||
| Cash received from acquisition of borrowings | 150,413,251.22 | 421,093,926.90 |
| Other cash received related to financing activities | 60,775,644.30 | - |
| Sub-total of cash inflows from financing activities | 211,188,895.52 | 421,093,926.90 |
| Cash paid for debt repayment | 571,104,234.83 | 933,281,007.65 |
| Cash paid for distribution of dividends, profits or interest payments | 7,422,777.94 | 11,182,322.03 |
| Payments of other cash related to financing activities | 27,698,183.34 | 19,898,880.17 |
| Sub-total of cash outflows from financing activities | 606,225,196.11 | 964,362,209.85 |
| Net cash flows from financing activities | -395,036,300.59 | -543,268,282.95 |
| IV. Impact of fluctuation in exchange rate on cash and cash equivalents | 567.77 | 1,112.72 |
| V. Net increase in cash and cash equivalents | 126,207,935.88 | -342,473,542.20 |
| Plus: beginning balance of cash and cash equivalents | 282,755,408.67 | 625,228,950.87 |
| VI. Ending balance of cash and cash equivalents | 408,963,344.55 | 282,755,408.67 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the FinanceDepartment: Lin Xiaojia
7. Consolidated statements of changes in owners' equity
The current period amount
Unit: RMB
| Item | Year 2024 | ||||||||||||||
| Owners' equity attributable to the parent company | Minority interests | Total owners' equity | |||||||||||||
| Equity | Other equity instruments | Capital reserve | Less: treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General risk reserve | Undistributed profits | Others | Subtotal | |||||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| I. Ending balance of the previous year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 163,346,776.24 | 1,459,288,691.94 | -68,475,330.29 | 1,390,813,361.65 | |||||||
| Plus: changes in accounting policies | |||||||||||||||
| Correction of prior period errors | |||||||||||||||
| Others | |||||||||||||||
| II. Beginning balance of the current year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 163,346,776.24 | 1,459,288,691.94 | -68,475,330.29 | 1,390,813,361.65 | |||||||
| III. Changes in the current period (decreases expressed with "-") | 4,183,054.57 | 21,908,828.57 | 26,091,883.14 | 91,018,595.91 | 117,110,479.05 | ||||||||||
| (I) Total comprehensive income | 21,908,828.57 | 21,908,828.57 | 42,018,595.91 | 63,927,424.48 | |||||||||||
| (II) Owner's investment and reductions in capital | 49,000,000.00 | 49,000,000.00 | |||||||||||||
| 1. Ordinary shares invested by owners | 49,000,000.00 | 49,000,000.00 | |||||||||||||
| 2. Capital invested by other equity instruments holders | |||||||||||||||
| 3. Share-based payments included in owners' equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (III) Profit distribution | |||||||||||||||
| 1. Withdrawal of surplus reserve | |||||||||||||||
| 2. Withdrawal of general risk reserve | |||||||||||||||
| 3. Distributions to owners (or shareholders) | |||||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal transfer of owners' equity | |||||||||||||||
| 1. Capital reserve converted into capital (or share capital) | |||||||||||||||
| 2. Surplus reserve converted into capital (or share capital) | |||||||||||||||
| 3. Surplus reserve to cover losses | |||||||||||||||
| 4. Changes in benefit plans transferred to retained earnings | |||||||||||||||
| 5. Other comprehensive income transferred to retained earnings | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserve |
| 1. Withdrawal in the current period | 5,767,486.06 | 5,767,486.06 | 5,767,486.06 | ||||||||||||
| 2. Usage in the current period | 5,767,486.06 | 5,767,486.06 | 5,767,486.06 | ||||||||||||
| (VI) Others | 4,183,054.57 | 4,183,054.57 | 4,183,054.57 | ||||||||||||
| IV. Ending balance in the current period | 602,762,596.00 | 362,770,922.10 | 1,683,054.57 | 332,908,397.60 | 185,255,604.81 | 1,485,380,575.08 | 22,543,265.62 | 1,507,923,840.70 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia
Amount in previous period
Unit: RMB
| Item | Year 2023 | ||||||||||||||
| Owners' equity attributable to the parent company | Minority interests | Total owners' equity | |||||||||||||
| Equity | Other equity instruments | Capital reserve | Less: treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General risk reserve | Undistributed profits | Others | Subtotal | |||||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| I. Ending balance of the previous year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 159,187,979.14 | 1,455,129,894.84 | -62,310,840.26 | 1,392,819,054.58 | |||||||
| Plus: changes in accounting policies | |||||||||||||||
| Correction of prior period errors | |||||||||||||||
| Others | |||||||||||||||
| II. Beginning balance of the current year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 159,187,979.14 | 1,455,129,894.84 | -62,310,840.26 | 1,392,819,054.58 | |||||||
| III. Changes in the current period (decreases expressed with "-") | 4,158,797.10 | 4,158,797.10 | -6,164,490.03 | -2,005,692.93 | |||||||||||
| (I) Total comprehensive income | 4,158,797.10 | 4,158,797.10 | -6,164,490.03 | -2,005,692.93 | |||||||||||
| (II) Owner's investment and reductions in capital | |||||||||||||||
| 1. Ordinary shares invested by owners | |||||||||||||||
| 2. Capital invested by other equity instruments holders | |||||||||||||||
| 3. Share-based payments included in owners' equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (III) Profit distribution | |||||||||||||||
| 1. Withdrawal of surplus reserve | |||||||||||||||
| 2. Withdrawal of general risk reserve | |||||||||||||||
| 3. Distributions to owners (or shareholders) | |||||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal transfer of owners' equity | |||||||||||||||
| 1. Capital reserve converted into capital (or share capital) | |||||||||||||||
| 2. Surplus reserve converted into capital (or |
| share capital) | |||||||||||||||
| 3. Surplus reserve to cover losses | |||||||||||||||
| 4. Changes in benefit plans transferred to retained earnings | |||||||||||||||
| 5. Other comprehensive income transferred to retained earnings | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserve | |||||||||||||||
| 1. Withdrawal in the current period | 13,270,901.66 | 13,270,901.66 | 13,270,901.66 | ||||||||||||
| 2. Usage in the current period | 13,270,901.66 | 13,270,901.66 | 13,270,901.66 | ||||||||||||
| (VI) Others | |||||||||||||||
| IV. Ending balance in the current period | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 163,346,776.24 | 1,459,288,691.94 | -68,475,330.29 | 1,390,813,361.65 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia
8. Statement of changes in owners' equity of the parent company
The current period amount
Unit: RMB
| Item | Year 2024 | |||||||||||
| Equity | Other equity instruments | Capital reserve | Less: treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Undistributed profits | Others | Total owners' equity | |||
| Preferred shares | Perpetual bonds | Others | ||||||||||
| I. Ending balance of the previous year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 618,813,953.67 | 1,844,447,986.97 | |||||||
| Plus: changes in accounting policies | ||||||||||||
| Correction of prior period errors | ||||||||||||
| Others | ||||||||||||
| II. Beginning balance of the current year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 618,813,953.67 | 1,844,447,986.97 | |||||||
| III. Changes in the current period (decreases expressed with "-") | 3,903,811.64 | 3,903,811.64 | ||||||||||
| (I) Total comprehensive income | 3,903,811.64 | 3,903,811.64 | ||||||||||
| (II) Owner's investment and reductions in capital | ||||||||||||
| 1. Ordinary shares invested by owners | ||||||||||||
| 2. Capital invested by other equity instruments holders | ||||||||||||
| 3. Share-based payments included in owners' equity | ||||||||||||
| 4. Others | ||||||||||||
| (III) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserve | ||||||||||||
| 2. Distributions to owners (or shareholders) | ||||||||||||
| 3. Others | ||||||||||||
| (IV) Internal transfer of owners' equity | ||||||||||||
| 1. Capital reserve converted |
| into capital (or share capital) | ||||||||||||
| 2. Surplus reserve converted into capital (or share capital) | ||||||||||||
| 3. Surplus reserve to cover losses | ||||||||||||
| 4. Changes in benefit plans transferred to retained earnings | ||||||||||||
| 5. Other comprehensive income transferred to retained earnings | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserve | ||||||||||||
| 1. Withdrawal in the current period | 5,750,504.93 | 5,750,504.93 | ||||||||||
| 2. Usage in the current period | 5,750,504.93 | 5,750,504.93 | ||||||||||
| (VI) Others | ||||||||||||
| IV. Ending balance in the current period | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 622,717,765.31 | 1,848,351,798.61 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia
Amount in previous period
Unit: RMB
| Item | Year 2023 | |||||||||||
| Equity | Other equity instruments | Capital reserve | Less: treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Undistributed profits | Others | Total owners' equity | |||
| Preferred shares | Perpetual bonds | Others | ||||||||||
| I. Ending balance of the previous year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 556,747,679.96 | 1,782,381,713.26 | |||||||
| Plus: changes in | ||||||||||||
| accounting policies | ||||||||||||
| Correction of prior period errors | ||||||||||||
| Others | ||||||||||||
| II. Beginning balance of the current year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 556,747,679.96 | 1,782,381,713.26 | |||||||
| III. Changes in the current period (decreases expressed with "-") | 62,066,273.71 | 62,066,273.71 | ||||||||||
| (I) Total comprehensive income | 62,066,273.71 | 62,066,273.71 | ||||||||||
| (II) Owner's investment and reductions in capital | ||||||||||||
| 1. Ordinary shares invested by owners | ||||||||||||
| 2. Capital invested by other equity instruments holders | ||||||||||||
| 3. Share-based payments included in owners' equity | ||||||||||||
| 4. Others | ||||||||||||
| (III) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserve | ||||||||||||
| 2. Distributions to owners (or shareholders) | ||||||||||||
| 3. Others | ||||||||||||
| (IV) Internal transfer of owners' equity | ||||||||||||
| 1. Capital reserve converted into capital (or share capital) | ||||||||||||
| 2. Surplus reserve converted into capital (or share capital) |
| 3. Surplus reserve to cover losses | ||||||||||||
| 4. Changes in benefit plans transferred to retained earnings | ||||||||||||
| 5. Other comprehensive income transferred to retained earnings | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserve | ||||||||||||
| 1. Withdrawal in the current period | 7,778,687.26 | 7,778,687.26 | ||||||||||
| 2. Usage in the current period | 7,778,687.26 | 7,778,687.26 | ||||||||||
| (VI) Others | ||||||||||||
| IV. Ending balance in the current period | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 618,813,953.67 | 1,844,447,986.97 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
Shenzhen Nanshan Power Co., Ltd.Notes to the Financial Statements for the Year Ended
December 31, 2024
(Unless otherwise specified, the monetary unit is RMB)
I. Basic information of the Company（I） Company profileShenzhen Nanshan Power Co., Ltd. (the Company) was reorganized and established from aforeign investment enterprise to a joint stock limited company on November 25, 1993, with theapproval of the General Office of the Shenzhen Municipal People's Government under documentSFBF [1993] No. 897.As approved by the General Office of the Shenzhen Municipal People's Government underdocument SZBF [1993] No. 179, the Company issued 40 million RMB ordinary shares and 37million domestically listed foreign shares to domestic and overseas investors respectively onJanuary 3, 1994. On July 1, 1994 and November 28, 1994, the RMB ordinary shares (A shares)and domestically listed foreign shares (B shares) issued by the Company were listed and traded onShenzhen Stock Exchange.The Company's primary business is the production and operation of power supply and heating, aswell as technical consultation and technical services related to power plant (station). TheCompany's registered address is located at No. 2097 Moon Bay Avenue, Nanshan District,Shenzhen, Guangdong. The Company's headquarters is located at 16F/17F, Hantang Building,Overseas Chinese Town, Nanshan District, Shenzhen, Guangdong.The financial statements were approved for disclosure by the Board of Directors of the Companyon April 21, 2025.（II） Scope of consolidated financial statementsAs of December 31, 2024, the subsidiaries within the scope of the Company's consolidatedfinancial statements are as follows:
| Subsidiary (enterprise) name | Shareholding ratio % | Remark |
| Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. ("Shenzhen Nanshan Power Zhongshan Company") | 80.00 | |
| Shenzhen Nanshan Power Gas Turbine Engineering Technology (Shenzhen) Co., Ltd. ("Shenzhen Nanshan Power Engineering Company") | 100.00 | |
| Shenzhen Nanshan Power Environmental Protection (Shenzhen) Co., Ltd. ("Shenzhen Nanshan Power Environmental Protection Company") | 100.00 | |
| Shenzhen Xiefu Energy Co., Ltd. ("Xiefu Company") | 50.00 | |
| Shenzhen New Power Industrial Co., Ltd. ("New Power Company") | 100.00 | |
| Shennan Energy (Singapore) Co., Ltd. ("Singapore Company") | 100.00 | |
| Hong Kong Hing Tak Shing Limited ("Hing Tak Shing") | 100.00 | |
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) ("Zhuhai Hengqin") | 99.96 | |
| Shenzhen Nanshan Power Xiwan Energy (Zhongshan) Co.,Ltd. | 51.00 |
For details on the scope of consolidated financial statements in the current period and its changes,please refer to Note VII. Interests in Other Entities.Basis for the preparation of financial statementsBased on the continuing operation and according to the actual transactions and events, the
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
Company prepares the financial statements in accordance with "the Accounting Standards forBusiness Enterprises - Basic Standards " promulgated by the Ministry of Finance and variousspecific accounting standards, application guidelines for accounting standards for businessenterprises, interpretations and other relevant provisions for accounting standards for businessenterprises (hereinafter collectively referred to as the "Accounting Standards for BusinessEnterprises"), as well as the disclosure provisions by " General Provisions on Financial Reporting,No. 15 of the Rules for Information Disclosure and Presentation by Companies that Publicly IssueSecurities" issued by the China Securities Regulatory Commission.The Company has no events or circumstances that cast significant doubt on the going-concernability within 12 months from the end of the reporting period.Important accounting policies and accounting estimatesBased on its actual production and operation characteristics and the provisions of relevantAccounting Standards for Business Enterprises, the Company has formulated several specificaccounting policies and accounting estimates, which are mainly reflected in the Provision for BadDebts of Accounts Receivable (Note III (XI) 6), Inventories (Note III (XII)), Fixed Assets (NoteIII (XVII)), Long-term Deferred Expenses (Note III (XXIII)), Revenue Recognition andMeasurement (Note III (XXVIII)), Special Reserves (Note III (XXXIII)) etc.（III） Statement on compliance with Accounting Standards for Business EnterprisesThe financial statements comply with the requirements of Accounting Standards for BusinessEnterprises promulgated by the Ministry of Finance, and truly and completely reflect theCompany's combination and the parent company's financial status as of December 31, 2024, aswell as the Company's combination and the parent company's operating results and cash flows in2024.（IV） Accounting periodA fiscal year begins on January 1 and ends on December 31 of the Gregorian calendar.（V） Operating cycleThe Company's operating cycle is 12 months, and the operating cycle is used as the liquidityclassification standard for assets and liabilities.（VI） Recording currencyThe Company uses RMB as the recording currency.（VII） Materiality criteria determination method and selection basis
| Item | Materiality criterion |
| Significant individual provision for bad debts of accounts receivable | Original book value is greater than RMB 1 million |
| Significant provision for bad debts of accounts receivable recovered or reversed in the current period | The amount of individual provision for bad debts of accounts receivable recovered or reversed exceeds RMB 1 million |
| Write-off of significant accounts receivable | The write-off amount of individual accounts receivable exceeds RMB 1 million |
| Important construction in progress | The individual amount is greater than RMB 5 million |
| Significant estimated liabilities | The individual amount is greater than RMB 5 million |
（VIII） Accounting treatments for business combinations under common control and notunder common controlFor a business combination under common control, the assets and liabilities acquired by thecombining party in a business combination are measured at the book value of the assets andliabilities of the combined party at the combination date (including goodwill resulting from the
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
acquisition of the combined party by the ultimate controller) in the consolidated financialstatements of the ultimate controller. The difference between the book value of net assets acquiredin the combination and the book value of the combination consideration paid (or the total nominalvalue of shares issued) is adjusted to the equity premium in capital reserve, or to retained earningsif the equity premium in capital reserve is not sufficient for elimination.For a business combination not under common control, the assets given, liabilities incurred orassumed by the purchaser as consideration for the business combination are measured at fair valueat the purchase date, and the difference between the fair value and its book value is recognized incurrent profit or loss. Goodwill is recognized if the combination cost is greater than the differencein the share of fair value of identifiable net assets of the acquiree acquired in the combination;Current profit or loss is recognized if the combination cost is lower than the difference in the shareof fair value of identifiable net assets of the acquiree acquired in the combination.Costs directly related to business combinations are recognized in current profit or loss as incurred;Transaction costs for the issuance of equity securities or debt securities for business combinationsare presented in the amount initially recognized for equity securities or debt securities.（IX） Method of preparation for consolidated financial statements
1. Consolidation scope
The consolidation scope of the consolidated financial statements is determined based on control,and covers the Company and all subsidiaries.
2. Consolidation procedure
The Company prepares consolidated financial statements based on its own financial statementsand those of its subsidiaries' and other relevant information. When the Company preparesconsolidated financial statements, it treats the entire enterprise group as an accounting entity, andreflects the overall financial status, operating results and cash flows of the enterprise group inaccordance with the recognition, measurement and presentation requirements of relevantAccounting Standards for Business Enterprises and in accordance with unified accountingpolicies.Accounting policies and accounting periods adopted by all subsidiaries included in theconsolidation scope of consolidated financial statements are consistent with those of the Company.If accounting policies and accounting periods adopted by subsidiaries are inconsistent with thoseof the Company, necessary adjustments are made when preparing consolidated financialstatements in accordance with the Company's accounting policies and accounting periods. For asubsidiary acquired through business combination not under common control, its financialstatements are adjusted based on fair value of identifiable net assets on the purchase date. For asubsidiary acquired through business combination under common control, adjustments are madeto its financial statements based on the book value of its assets and liabilities (including goodwillresulting from acquisition of the subsidiary by ultimate controller) in the ultimate controller'sfinancial statements.The subsidiary's owners' equity, current net profit or loss and current comprehensive incomebelonging to minority shareholders are presented under the item of owners' equity in theconsolidated balance sheet, under the item of net profit and under the item of total comprehensiveincome in the consolidated income statement, respectively. The balance resulting from the excessof the minority shareholders' share of the current loss of a subsidiary over the minority's share ofthe subsidiary's owners' equity at the beginning of the period is used to offset the minorityinterests.
(1) Increases in subsidiaries or businesses
If there are increases in subsidiaries or businesses as a result of business combination undercommon control during the reporting period, the beginning balance of the consolidated balancesheet is adjusted; Include revenue, expenses and profits of subsidiaries or business combinationsfrom the beginning of the current period to the end of the reporting period in the consolidatedincome statement; Include cash flows from the beginning of the period to the end of the reportingperiod of subsidiaries or business combinations in the consolidated statement of cash flows, and
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
adjust the relevant line items in the comparative statements to deem the consolidated reportingentity to have been in existence since the time point at which the ultimate controller began tocontrol.If control can be exercised over an investee under common control as a result of an additionalinvestment, etc., the parties involved in the combination are deemed to have been adjusted basedon their current status when the ultimate controller began to control. For equity investments heldprior to the acquisition of right of control of the combined party, the relevant profit or loss, othercomprehensive income and other changes in net assets have been recognized between the later ofthe combination date of the original equity and the date on which the merging party and themerged party were under common control and the combination date, whichever is later, and areoffset against the beginning retained earnings or current profit or loss of comparative statementsperiod.If there are increases in subsidiaries or businesses as a result of a business combination not undercommon control during the reporting period, the beginning balance of the consolidated balancesheet will not be adjusted; Include revenue, expenses and profits of subsidiary or business fromthe purchase date to the end of the reporting period in consolidated income statement; Include thecash flows of the subsidiary or business from the purchase date to the end of the reporting periodin the consolidated statement of cash flows.If the Company can control an investee that is not under common control as a result of additionalinvestment, etc., the Company remeasures the acquiree's equity interest held prior to the purchasedate at the fair value of the equity interest at the purchase date of the equity interest. Thedifference between the fair value and its book value is recognized in current investment income. Ifthe equity interest in the acquiree held prior to the purchase date is related to other comprehensiveincome accounted for under the equity method and other changes in owners' equity other than netprofit or loss, other comprehensive income and profit distribution, the other comprehensiveincome and other changes in owners' equity related to them are transferred to investment incomefor the period in which they are held at the purchase date, except for other comprehensive incomedue to the remeasurement of the investee's net liabilities under defined benefit plans or changes innet assets.
(2) Disposal of subsidiaries or businesses
① General treatment method
If the Company disposes the subsidiary or business during the reporting period, the revenue,expenses and profits of the subsidiary or business from the beginning of the period to the date ofdisposal are included in the consolidated income statement; Cash flows of the subsidiary orbusiness from the beginning of the period to the date of disposal are included in the consolidatedstatement of cash flows.When the Company loses right of control over the investee due to the disposal of part of the equityinvestments or other reasons, the Company remeasures the remaining equity investments after thedisposal according to its fair value on the date of loss of control. The difference between the sumof the consideration received for the disposal of equity interest and the fair value of the remainingequity interest less the sum of the share of the original subsidiary's net assets continuouslymeasured from the purchase date or the combination date based on the original shareholding ratioand goodwill is recognized as investment income in the period in which the loss of control occurs.Other comprehensive income related to equity investments in subsidiaries or other changes inowners' equity other than net profit or loss, other comprehensive income and profit distribution aretransferred to investment income in the current period upon loss of control, except for othercomprehensive income due to remeasurement of net liabilities under defined benefit plans orchanges in net assets by the investee.If the Company's shareholding ratio decreases due to other investors' capital increase in thesubsidiary and the Company loss of control, accounting treatment is carried out in accordance withthe above principles.
② Disposal of subsidiaries in stages
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
For a disposal of equity investments in subsidiaries through multiple transactions in stages untilthe loss of control, it generally indicates that multiple transactions are accounted for as a packageof transactions if the terms, conditions, and economic effects of each transaction of such disposalof equity investments in subsidiaries meet one or more of the following circumstances:
i. such transactions are entered into simultaneously or with consideration of their effects on eachother;ii. such transactions can only achieve a complete business result when taken as an entirety;iii. the occurrence of a transaction depends on the occurrence of at least one other transaction;iv. a transaction is uneconomical when considered in isolation, but economical when considered inconjunction with other transactions.If the transactions that dispose of the equity investments in subsidiaries until of loss of controlbelongs to a package of transactions, the Company account for each transaction as a transaction inwhich subsidiary is disposed of and loss of control; However, the difference between the disposalprice and the net asset share of the subsidiary corresponding to the disposal of the investment ineach case prior to the loss of control is recognized in the consolidated financial statements as othercomprehensive income and transferred to current profit or loss in the period in which the loss ofcontrol occurs.If various transactions involving the disposal of equity investments in subsidiaries until loss ofcontrol do not belong to a package of transactions, prior to the loss of control, accountingtreatment is performed in accordance with the relevant policies for partial disposal of equityinvestments in subsidiary without loss of control; Upon loss of control, accounting treatment isperformed in accordance with general method for disposal subsidiary.
(3) Purchase of minority interests in subsidiaries
The difference between the newly acquired long-term equity investments resulting from thepurchase of minority interests and the Company's net asset share of the subsidiaries calculated onthe basis of the ratio of the newly acquired shares in the subsidiaries' net assets on an ongoingbasis from the purchase date (or the combination date) is adjusted to the equity premium in thecapital reserve in the consolidated balance sheet, or to the retained earnings if the equity premiumin the capital reserve is insufficient to offset the difference.
(4) Partially dispose of equity investments in subsidiaries without loss of controlThe difference between the disposal price obtained from the partial disposal of long-term equityinvestments in subsidiaries without loss of control and the corresponding subsidiaries' net assetshare on a continuing basis from the purchase date (or the combination date) of the long-termequity investments disposed of is adjusted to the equity premium in the capital reserve in theconsolidated balance sheet, or to the retained earnings if the capital reserve is insufficient to offsetthe difference.（X） Joint venture arrangements classification and accounting treatmentsJoint venture arrangements are divided into joint operations and joint ventures.When the Company is a joint party to joint venture arrangements, is entitled to the assets andassumes the liabilities related to the arrangements, it is a joint operation.The Company confirms the following items related to the interest share in joint operations, andperforms accounting treatments in accordance with the relevant Accounting Standards forBusiness Enterprises:
(1) recognizing assets held separately by the Company and recognizing jointly held assets basedon the Company's share;
(2) recognizing liabilities borne separately by the Company and recognizing liabilities bornejointly based on the Company's share;
(3) recognizing revenue from the sale of the Company's share of joint operations outputs;
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
(4) recognizing revenue from joint operations arising from the sale of output based on theCompany's share;
(5) recognizing expenses incurred independently, and recognizing expenses incurred by jointoperations based on the Company's share.See Note "III (XV) Long-term equity investments" for the accounting policies of the Company'sinvestment in joint ventures.（XI） Determination criteria for cash and cash equivalentsWhen preparing the statement of cash flows, the Company's cash on hand and deposits that can beused for payment at any time are recognized as cash. Investments that meet the four conditions ofshort term (due within three months from the purchase date), strong liquidity, easy conversion intoknown amounts of cash, and small risk of value changes are determined as cash equivalents.（XII） Foreign currency transactions and translation of foreign currency statements
1. Foreign currency transactions
Foreign currency transactions are recorded using the spot exchange rate at the transaction date asthe translation rate to convert the foreign currency amount into RMB.The balance of foreign currency monetary items on the balance sheet date is translated at spotexchange rate on balance sheet date. The resulting exchange differences are recognized in currentprofit or loss, except for those arising from foreign-currency special borrowings related to theacquisition and construction of assets eligible for capitalization, which are treated in accordancewith the principle of capitalization of borrowing costs.
2. Translation of foreign currency financial statements
Assets and liability items in the balance sheet are translated using spot exchange rate on thebalance sheet date; Owners' equity items, except for "undistributed profits", are translated at spotexchange rate at the time of occurrence. Revenue and expense items in the income statement aretranslated at spot exchange rate on the transaction date.When disposing of an overseas operation, the difference arising from the translation of foreign-currency financial statements related to the overseas operation is transferred from owners' equityitems to the current profit or loss in the period of disposal.（XIII） Financial instrumentsFinancial instruments include financial assets, financial liabilities and equity instruments.
1. Classification of financial instruments
Based on the Company's business model for managing financial assets and the contractual cashflows characteristics of financial assets, financial assets are classified upon initial recognition into:
financial assets measured at amortized costs, financial assets measured at fair value with changesincluded in other comprehensive income financial assets (debt instruments) and financial assetsmeasured at fair value with changes included in current profit or loss.Financial assets with a business model whose objective is to collect the contractual cash flows andwhose contract cash flows consist solely of payments of principal and interest based on theprincipal amount outstanding are classified as financial assets measured at amortized costs;Financial assets with a business model whose objective is both to collect the contractual cashflows and to sell the financial assets and whose contract cash flows consist solely of payments ofprincipal and interest based on the principal amount outstanding are classified as financial assets atfair value with changes included in other comprehensive income (debt instruments); Otherfinancial assets beyond these are classified as financial assets measured at fair value with changesincluded in current profit or loss.For investments in non-trading equity instruments, the Company determines upon initialrecognition whether to designate them as financial assets (equity instruments) measured at fairvalue with changes included in other comprehensive income. At the time of initial recognition, inorder to eliminate or significantly reduce accounting mismatches, financial assets can be
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
designated as financial assets measured at fair value through the current profit or loss. Accordingto the above conditions, the financial assets designated by the Company mainly include:
(specifically describe the designated situation)Financial liabilities are classified upon initial recognition into: financial liabilities measured at fairvalue with changes included in current profit or loss and financial liabilities measured at amortizedcosts.Financial liabilities that meet one of the following conditions can be designated upon initialmeasurement as financial liabilities measured at fair value with changes included in current profitor loss:
1) Such designation can eliminate or significantly reduce accounting mismatches.
2) According to the enterprise risk management or investment strategies stated in formal writtendocuments, the Company manages and evaluates the performance of the financial liabilitiesportfolio or the portfolio of financial assets and financial liabilities on the basis of the fair value,and reports to the key officers within the enterprise on this basis.
3) The financial liabilities contain embedded derivative instruments that need to be separatelysplit.In accordance with the above conditions, such financial liabilities designated by the Companymainly include: (specifically describe the circumstances specified)
2. Recognition basis and measurement method for financial instruments
(1) Financial assets measured at amortized costs
Financial assets measured at amortized costs including notes receivable, accounts receivable, otherreceivables, long-term receivables, debt investments, etc., are initially measured at fair value, withrelated transaction costs included in the initial recognition amount; Accounts receivable that do notcontain significant financing components and accounts receivable that the Company decides not toconsider the financing components of less than one year are initial measurement at the contracttransaction prices.Interest calculated using the effective interest method during the holding period is included incurrent profit or loss.When financial assets are recovered or disposed of, the difference between the price obtained andthe book value of the financial assets is recorded in current profit or loss.
(2) Financial assets (debt instruments) measured at fair value with changes included in othercomprehensive incomeFinancial assets (debt instruments) measured at fair value with changes included in othercomprehensive income including receivables financing, other debt investments, etc., are initiallymeasured at fair value, with related transaction costs included in the initial recognition amount.The subsequent measurement of the financial assets is carried out at fair value, with fair valuechanges recognized in other comprehensive income, except for interest calculated using theeffective interest method, impairment losses or gains, and foreign exchange profit or loss.On derecognition, accumulated gains or losses previously included in other comprehensiveincome are transferred out of other comprehensive income and included in current profit or loss.
(3) Financial assets (equity instruments) measured at fair value with changes included in othercomprehensive incomeFinancial assets (equity instruments) measured at fair value with changes included in othercomprehensive income including other investments in equity instruments, etc., are initiallymeasured at fair value, with related transaction costs included in the initial recognition amount.The subsequent measurement of the financial assets is carried out at fair value, with fair valuechanges included in other comprehensive income. Dividend received are included in current profitor loss.On derecognition, accumulated gains or losses previously included in other comprehensive
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
income are transferred out of other comprehensive income and included in retained earnings.
(4) Financial assets measured at fair value with changes included in current profit or lossFinancial assets measured at fair value with changes included in current profit or loss includingfinancial assets held for trading, derivative financial assets, other non-current financial assets, etc.,are initially measured at fair value, with related transaction costs included in current profit or loss.The subsequent measurement of the financial assets is carried out at fair value, with fair valuechanges included in current profit or loss.
(5) Financial liabilities measured at fair value with changes included in current profit or lossFinancial liabilities measured fair value with changes included in current profit or loss includingfinancial liabilities held for trading, derivative financial liabilities, etc., are initially measured atfair value, with related transaction costs included in current profit or loss. The subsequentmeasurement of the financial liabilities is carried out at fair value, with fair value changesincluded in current profit or loss.On derecognition, the difference between the book value and the consideration paid is included incurrent profit or loss.
(6) Financial liabilities measured at amortized costs
Financial liabilities measured at amortized costs including short-term borrowings, notes payable,accounts payable, other payables, long-term borrowings, bonds payable, and long-term payables,are initially measured at fair value, with related transaction costs included in the initial recognitionamount.Interest calculated using the effective interest method during the holding period is included incurrent profit or loss.On derecognition, the difference between the consideration paid and the book value of thefinancial liabilities is included in current profit or loss.
3. Recognition basis and measurement method for transfer of financial assetsThe Company assesses the extent to which it retains the risks and rewards of ownership offinancial assets when a transfer of financial assets occurs and treats them as follows, respectively:
(1) If substantially all the risks and rewards of ownership of financial assets are transferred, thefinancial assets are derecognized, and rights and obligations arising from or retained in the transferare recognized separately as assets or liabilities.
(2) If substantially all the risks and rewards of ownership of financial assets are retained, thefinancial assets continue to be recognized.
(3) If the Company neither transfers nor retains substantially all risks and rewards of ownershipfinancial assets (i.e., in cases other than those in (1) and (2) of this Article), it treats the financialassets, according to whether or not it retains control over the financial asset, respectively asfollows:
1) If control over the financial assets is not retained, the financial assets are derecognized and therights and obligations arising from or retained in the transfer are recognized separately as assets orliabilities.
2) If control of financial assets is retained, the financial assets continue to be recognized to theextent of continued involvement in the transferred financial assets, and related liabilities arerecognized accordingly. The extent of continued involvement in the transferred financial assets isthe extent to which the Company bears the risk or rewards of changes in the value of thetransferred financial assets.In determining whether the transfer of financial assets satisfies the above conditions forderecognition of financial assets, the principle of substance over form is applied. The Companydistinguishes between transfer of financial assets in their entirety and partial transfer of financialassets.
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
(1) When the financial assets are transferred in their entirety to satisfy the conditions forderecognition, the difference between the following two amounts is recognized in current profit orloss:
1) The book value of transferred financial assets on the derecognition date.
2) The sum of the consideration received for the transfer of the financial assets and the amountcorresponding to the derecognized part of the cumulative fair value changes included directly inother comprehensive income (the financial assets involved in the transfer are financial assets atfair value with changes included in other comprehensive income).
(2) If financial assets are partially transferred and the transferred part as a whole meets conditionsfor derecognition, the book value of the entire financial assets before the transfer is dividedbetween the derecognized part and the continued recognition part (in this case, the retained serviceassets are deemed to continue to be recognized as part of financial assets) are amortized accordingto their respective relative fair values on the transfer date , and the difference between thefollowing two amounts is included in current profit or loss:
1) The book value of derecognized part on the derecognition date.
2) The sum of the consideration received for the derecognized part and the amount correspondingto the derecognized part of the cumulative amount of fair value changes originally included inother comprehensive income (the financial assets involved in the transfer are financial assets atfair value with changes included in other comprehensive income).If the transfer of financial assets does not satisfy the conditions for derecognition, the financialassets continue to be recognized and the consideration received is recognized as financialliabilities.
4. Conditions for derecognition of financial liabilities
If the current obligations for financial liabilities are fully or partially discharged, the financialliabilities, or a part thereof, are derecognized; If the Company enters into an agreement with acreditor to replace the existing financial liabilities by assuming new financial liabilities, and thecontractual terms of the new financial liabilities are substantially different from those of theexisting financial liabilities, the existing financial liabilities are derecognized and the newfinancial liabilities are recognized simultaneously.If all or part of the contractual terms of the existing financial liabilities are substantially modified,the existing financial liabilities or a part thereof are derecognized, and the modified financialliabilities are recognized as new financial liabilities.When financial liabilities are fully or partially derecognized, the difference between the bookvalue of the derecognized financial liabilities and the consideration paid (including non-cashassets transferred out or new financial liabilities assumed) is recognized in current profit or loss.If the Company repurchases part of financial liabilities, it allocates the overall book value of thefinancial liabilities based on the relative fair values of the continued recognition part andderecognized part on the repurchase date. The difference between the book value allocated to thederecognized part and the consideration paid (including non-cash assets transferred out or newfinancial liabilities assumed) is recognized in current profit or loss.
5. Methods for determining fair values of financial assets and financial liabilitiesFor financial instruments that have an active market, their fair values are determined based on thequoted price in the active market. For financial instruments that do not have active market, theirfair values are determined by valuation techniques. In valuing the fair value, the Company usesvaluation techniques that are applicable in the current circumstances and are supported bysufficient available data and other information, selects inputs that are consistent with thecharacteristics of the assets or liabilities that would be considered by a market participant in atransaction for the underlying assets or liabilities, and prioritizes the use of relevant observableinputs. Non-observable inputs are used only when relevant observable inputs are not available ornot practicable to obtain.
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
6. Test method and accounting treatment method of financial assets impairmentThe Company estimates expected credit losses on financial assets measured at amortized costs andfinancial assets measured at fair value with changes included in other comprehensive income (debtinstruments), either individually or in combination, taking into account all reasonable andsupportable information including forward-looking information. The measurement of expectedcredit losses depends on whether a significant increase in credit risk has occurred in the financialassets since initial recognition.The Company uses a simplified measurement method to measure loss provision based on expectedcredit losses over the entire life of all notes receivable, contract assets, accounts receivable andlease receivables generated from daily operating activities such as sales of goods and provision ofservices that are regulated by the revenue standard; For notes receivable, receivables financing andother receivables classified as portfolio other than these, the Company calculates expected creditlosses by reference to historical credit loss experience, current conditions, and projections offuture economic conditions by using default risk exposures, and expected credit loss over the lifeof the instruments rate within the next 12 months or over the entire duration.In addition to the above-mentioned simplified measurement methods and various other receivablesand temporary payments other than purchased or originated credit loss, the Company evaluates onbalance sheet date whether credit risk of relevant financial instruments has increased significantlysince the initial recognition, measures its provision for losses and recognizes expected creditlosses and changes therein, respectively.
(1) Recognition criteria and methods for provision for provision for bad debts of accountsreceivable with individually insignificant amount but individual provision for bad debtsThe Company conducts separate impairment test on accounts receivable with significantindividual amounts, and conducts separate impairment test on financial assets that have not beenimpaired and includes them in financial assets portfolio with similar credit risk characteristics.Accounts receivable for which impairment losses are recognized in individual test are no longerincluded in the portfolio of accounts receivable with similar credit risk characteristics forimpairment testing.
(2) Accounts receivable with individually insignificant amount but individual provision for baddebtsFor accounts receivable whose individual amounts are not significant but have the followingcharacteristics, such as: accounts receivable that are in dispute with the other party or involved inlitigation or arbitration; The debtor fails to be contacted and there is no third-party pursuer; Theaccounts receivable that have obvious signs that the debtor is likely to be unable to fulfill itsrepayment obligations shall be subject to a separate impairment test. If any object evidenceproving the existence of impairment, impairment loss is recognized and provision for impairmentis made at the difference between present value of future cash flows and their book value.
(3) Determination basis and calculation method of accounts receivable whose expected creditlosses are calculated based on credit risk portfolioWhen sufficient evidence of expected credit losses cannot be assessed at a reasonable cost at theindividual instrument level, the Company divides notes receivable, accounts receivable, otherreceivables, and contract assets into portfolios based on credit risk characteristics by referring tohistorical credit loss experience, taking into account current conditions as well as judgments offuture economic conditions, and calculates expected credit losses on a portfolio basis.
| Name of portfolios | Basis for determining the portfolio |
| Portfolio I | Portfolio of bank acceptance bills |
| Portfolio II | Receivables from power production and sales |
| Portfolio III | Integrated energy service receivables |
| Portfolio IV | Consolidated accounts receivable from related parties, other receivables and contract asset portfolios |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Portfolio V | Margin, security deposit and petty cash portfolio |
| Portfolio VI | Export tax rebate, VAT refunded upon collection and other tax portfolios |
| Portfolio VII | Other receivables and temporary payments other than the above portfolios |
（XIV） Inventories
1. Classification of inventories
The Company's main business is the power production and sale of power. The Company'sinventories mainly consist of materials and supplies consumed in the course of production orrendering of services, mainly including fuel, raw materials, spare parts and maintenanceequipment, etc.
2. Valuation method for dispatched inventories
Inventories are initially measured at the cost when acquired, but measured at weighted averagemethod when dispatched.
3. Basis for determining net realizable value of different categories of inventoriesFor goods inventories for direct sale, including finished products, stock commodities and materialsfor sale, their net realizable values shall be recognized at the estimated selling prices minus theestimated selling and distribution expenses and the relevant taxes and surcharges in the course ofnormal production and operation; For material inventories required for process, in the course ofnormal production and operation, their net realizable values are recognized at the estimated sellingprices of finished products minus estimated costs until completion, selling and distributionexpenses and relevant taxes and surcharges; For inventories held to execute sales contract orservice contract, their net realizable values are calculated on the basis of contract price. If thequantities of inventories specified in sales contracts are less than the quantities held by theCompany, the net realizable value of the excess portion of inventories shall be based on generalselling prices.Provision for inventory depreciation will be made at the end of the period on an individual basis.However, for inventories with large quantities and low unit prices, provision for inventorydepreciation are made according to the category of inventories; For the inventories related to theseries of products manufactured and sold in the same area, and of which the final use or purpose isidentical or similar thereto, and if it is difficult to measure them by separating them from otheritems, the provision for inventory depreciation reserve shall be made on a consolidation basis.When making provision for inventory depreciation, if the factors causing any write-down ofinventory value have disappeared, leading to the net realizable values of inventories higher than itsbook value, the amount of write-down shall be reversed from the original provision for inventorydepreciation with the reversal being included in the current profit or loss.
4. Inventory system
The perpetual inventory system is adopted.
5. Amortization method for low-value consumables and packaging materials
(1) Low-value consumables are amortized at lump-sum method.
(2) Packaging materials are amortized at lump-sum method.
（XV） Contract assets
1. Recognition methods and standards of contract assets
Contract assets refer to the right of the Company to receive consideration for goods or servicestransferred to customers, and the right depends on factors other than the passage of time. TheCompany's unconditional (i.e., subject only to the passage of time) right to receive considerationfrom customers is presented separately as accounts receivable.
2. Determination method and accounting treatment method of expected credit losses of
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
contract assetsFor the determination method and accounting treatments of the expected credit losses of thecontract assets, please refer to the accounting treatment of the relevant accounts receivable in NoteIII "(XI) 6. Test method and accounting treatments of financial assets impairment".（XVI） Assets held for sale
1. The Company classifies non-current assets or disposal groups that meet the followingconditions into the category of assets held for sale:
(1) According to the practice of selling such assets or disposal groups in similar transactions, theycan be sold immediately under the current conditions;
(2) The sale is highly likely to occur, that is, the Company has made a resolution on a sale planand obtained a firm purchase commitment, and the sale is expected to be completed within oneyear. Where the relevant regulations require the approval of the relevant authority or regulatorydepartment of the Company before the sale, the approval has been obtained.
2. The Company classifies a component that meets one of the following conditions and iscapable of being separately distinguished, and the component has been disposed of orclassified as held for sale:
(1) The component represents an independent major business or a separate major business area;
(2) The component is a part of an associated plan to dispose of an independent major business or aseparate major business area;
(3) The component is a subsidiary acquired for resale.
3. Presentation method
The Company presents separately in the balance sheet the assets in the non-current assets ordisposal group held for sale from other assets, and the liabilities in the disposal group held for salefrom other liabilities. The assets in the non-current assets held for sale or the disposal group heldfor sale shall not be offset against the liabilities in the disposal group held for sale, and shall bepresented as the current assets and current liabilities respectively.The Company presents the profit or loss of continuing operations and the profit or loss ofdiscontinued operations in the income statement separately. For non-current assets or disposalgroups held for sale that do not meet the definition of discontinued operations, their impairmentlosses and reversal amounts and disposal profit or loss shall be presented as profit or loss fromcontinuing operations. Operating profit or loss such as impairment losses and reversal amount ofdiscontinued operations and disposal profit or loss shall be presented as the profit or loss fromdiscontinued operations.（XVII） Long-term equity investments
1. Judgment criteria for common control and significant influence
Common control refers to the mutual control over certain arrangement based on relevantagreements, however, activities related to such arrangement can be decided only when theconsensus of the participating party sharing the right of control is obtained. Where the Companyexercises common control over the investees together with other parties to the joint ventures andenjoys the right on the investee's net assets, the investee is a joint venture of the Company.Significant influence refers to the power to participate in making decisions on the financial andoperating policies of an enterprise, but not the power to control, or jointly control, the formulationof such policies with other parties. If the Company can exert significant influence on investees,investees shall be associates of the Company.
2. Determination of initial investment cost
(1) Long-term equity investments formed by business combination
Business combination under common control: if the Company pays cash, transfers non-cash assetsor assumes debts, and issues equity securities as the combination consideration, the share of book
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
value of acquiring the owners' equity of the combined party in the ultimate controller'sconsolidated financial statements is taken as the initial investment cost of long-term equityinvestments on the combination date. In case the Company can exercise control over the investeeunder common control for additional investments or other reasons, the initial investment cost oflong-term equity investments should be recognized at the share of book value of net asset of thecombined party after the combination in the consolidated financial statements of the ultimatecontroller on the combination date. If there is a difference between the initial investment cost ofthe long-term equity investments on the combination date and the sum of the book value of thelong-term equity investments before combination and the book value of the consideration newlypaid by shares acquired on the combination date, the difference shall be used to adjust the equitypremium; and if the equity premium is insufficient to be offset, retained earnings shall be offset.Business combination not under common control: the Company shall use the combination costdetermined on the purchase date as the initial investment cost of long-term equity investments. Ifit is possible to exercise control investees that is not under common control due to additionalinvestment or other reasons, the sum of the book value of the original equity investments plus thecost of the new investment will be used as initial investment cost accounted under the costmethod.
(2) Long-term equity investments obtained through other means
For long-term equity investments acquired from cash payment, the initial investment cost is theactually paid purchasing cost.For the long-term equity investments acquired by issuing equity securities, the initial investmentcost is the fair value of the issued equity securities.On the premise that exchange of non-monetary assets is of commercial nature and the fair value ofthe asset traded in and out can be measured reliably, the initial investment cost of long-term equityinvestments traded in with non-monetary asset should be determined according to the fair value ofthe asset traded out and relevant taxes and surcharges payable, unless any concrete evidenceindicates that the fair value of the asset traded in is more reliable; For exchange of non-monetaryassets that do not meet the above premise, the book value of the asset traded out and relevant taxesand surcharges payable should be recognized as the initial investment cost of the long-term equityinvestments traded.For long-term equity investments obtained through debt restructuring, its book value is determinedby the fair value of the abandoned creditor's right and the other taxes directly attributable to theassets, and the difference between the fair value of the abandoned creditor's right and the bookvalue is included into the current profit or loss.
3. Subsequent measurements and recognition of profit or loss
(1) Long-term equity investments accounted for under the cost method
The Company's long-term equity investments in subsidiary is accounted for under the costmethod. Except for the actual price paid for acquisition of investment or the cash dividends orprofits contained in the consideration which have been declared but not yet distributed, theCompany recognizes the investment income in the current period at the cash dividends or profitsdeclared by the investee.
(2) Long-term equity investments accounted for under the equity method
Long-term equity investments in associates and joint ventures are accounted for under the equitymethod. If the initial investment cost is in excess of the share of fair value of identifiable net assetsin the investee when the investment is made, the difference will not be adjusted to the initialinvestment cost of long-term equity investments; If the initial investment cost is in short of theshare of fair value of identifiable net assets in the investee when the investment is made, thedifference will be included in the current profit or loss.The Company should recognize the investment income and other comprehensive incomerespectively in accordance with its share of net profit or loss and other comprehensive incomerealized by the investees that it should enjoy or share, and adjust the book value of long-term
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
equity investments; The book value of long-term equity investments will be reduced accordinglyin the light of the profits or cash dividends that the investee declares to distribute; For otherchanges in the owners' equity of investees other than net profit or loss, other comprehensiveincome and profit distribution, the book value of long-term equity investments is adjusted andincluded in owners' equity.When confirming the shares of net profit or loss of the investee which the Company shall enjoy,based on the fair value of the identifiable net assets of the investee at the time of acquisition of theinvestment, the Company confirms the net profit of the investee after adjustment in accordancewith the Company's accounting policies and the accounting period. During the period when theinvestment is held, if the investees prepares consolidated financial statements, the accounting shallbe made based on the amount attributable to investees in net profit, other comprehensive incomeand other changes in owners' equity in the consolidated financial statements.The unrealized profit or loss of internal transactions between the Company and associates andjoint ventures shall be offset according to the proportion attributable to the Company, and theinvestment income shall be recognized on this basis. Unrealized internal transaction loss incurredbetween the Company and the investee shall be recognized in full if such loss belongs to the assetimpairment loss. If the Company invests or sells assets to associates and joint ventures, and theassets constitute business, the accounting treatment shall be made in accordance with the relevantpolicies disclosed in "III. (VI) Accounting treatments of business combination under commoncontrol and not under common control" and "III. (VII) Preparation method of consolidatedfinancial statements" in this note.When the Company recognizes the losses of investees that it should share, it shall proceed in thefollowing order: Firstly, reduce book value of long-term equity investments. Secondly, if the bookvalue of long-term equity investments is not sufficient to offset it, the investment losses willcontinue to be recognized to the extent of book value of other long-term interests that essentiallyconstitute a net investment of the investees, to offset the book value of long-term receivables, etc.Finally, after the above processing, if the enterprise still bears additional obligations according tothe investment contract or agreement, the estimated liabilities will be recognized based on theestimated obligations and included in the current investment losses.
(3) Disposal of long-term equity investments
When disposing of long-term equity investments, the difference between the book value and theactual price obtained shall be included in the current profit or loss.When disposing of long-term equity investments accounted for under the equity method, theportion originally included in other comprehensive income will be accounted for in acorresponding ratio on the same basis as the investees' direct disposal of relevant assets orliabilities. The owners' equity recognized due to the changes in owners' equity other than net profitor loss, other comprehensive income, and profit distribution shall be carried forward to the currentprofit or loss on a proportional basis, except for other comprehensive income arising from theinvestee's remeasurement of changes in net liabilities or net assets under the defined benefit plans.If common control or significant influence on investees is lost due to the disposal of part equityinvestments or other reasons, the remaining equity after disposal shall be calculated in accordancewith recognition and measurement standards of financial instruments. The difference between itsfair value and book value at the date of loss of common control or significant influence isrecognized in the current profit or loss. For other comprehensive income recognized due to theoriginal equity investments accounted for under the equity method, it shall be accounted for on thesame basis as the investees' direct disposal of relevant assets or liabilities when the accounting forequity method is no longer adopted. The owners' equity recognized due to other changes inowners' equity of the investee other than net profit or loss, other comprehensive income and profitdistribution will all be transferred to the current profit or loss when accounted for under the equitymethod is terminated.If the Company loses right of control over investees due to the disposal of part of equityinvestments or increase in capital of the subsidiary by other investors, resulting in a decrease in theCompany's shareholding ratio, when preparing individual financial statements, if the remaining
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
equity can exercise common control or significant influence over investees, it shall be accountedby under equity method, which shall be deemed to be adjusted under the equity method since thetime of acquisition. If the remaining equity cannot common control or exert significant influenceon investees, it shall be accounted for in accordance with the relevant provisions of recognitionand measurement standards of financial instruments, and the difference between its fair value andbook value on the date of loss of control shall be included in the current profit or loss.Where the equity disposed of are acquired through business combination as a result of additionalinvestment and other reasons, if the remaining equities after disposal are calculated under the costmethod or equity method upon preparation of separate financial statements, other comprehensiveincome and other owners' equity recognized in equity investments held before the purchase date asa result of accounting under equity method shall be carried forward pro rata; If the remainingequity after disposal is accounted for in accordance with recognition and measurement standardsof financial instruments, other comprehensive income and other owners' equity will be carriedforward.（XVIII） Investment propertiesThe investment properties refer to the properties held for earning rentals or/and capitalappreciation, including leased land use right, land use right held for transfer upon appreciation,and leased building (including self-built buildings or buildings developed for renting or buildingsunder construction or development for future renting).The Company measures its existing investment properties under the cost model. For investmentproperties measured under the cost model - in terms of buildings for renting, the same depreciationpolicy as that for fixed assets of the Company is adopted; for land use rights for renting, the sameamortization policy as that for intangible assets is adopted.（XIX） Fixed assets
1. Recognition conditions of fixed assets
Fixed assets refer to the tangible assets of the Company held for the purpose of producingcommodities, rendering services, renting or business management with service life exceeding oneaccounting year. Fixed assets are recognized when the following conditions are met at the sametime:
(1) It is very likely that the economic benefits associated with the fixed assets will flow into theenterprise;
(2) The cost of the fixed assets can be measured reliably.
2. Depreciation method
The depreciation of fixed assets is provided on a category basis by using the straight-line method(or: unit-of-production method, double declining balance method and sum-of-the-years-digitsmethod, etc.), and the depreciation rate is determined according to the category, estimated servicelife and estimated net residual value rate of the fixed assets. If service life of the variouscomponents of fixed assets are different or they provide economic benefits to the enterprise indifferent ways, different depreciation rates or depreciation method should be selected anddepreciation should be accrued separately.The depreciation method, depreciation life, residual rate and annual depreciation rate of fixedassets are as follows:
| Category | Depreciation method | Depreciation life (years) | Residual rate(%) | Annual depreciation rate (%) |
| Buildings and constructions | Straight-line method | 20 years | 0-10 | 4.5-5 |
| House decoration | Straight-line method | 10 years | 0-5 | 9.5-10 |
| Machinery equipment - gas turbine generator units | Workload method | - | 0-10 | - |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Category | Depreciation method | Depreciation life (years) | Residual rate(%) | Annual depreciation rate (%) |
| Machinery equipment (except for gas turbine generator unit) | Straight-line method | 15-20 years | 0-5 | 4.75-6.67 |
| Means of transport | Straight-line method | 5 years | 0-5 | 19-20 |
| Electronic equipment | Straight-line method | 5 years | 0-5 | 19-20 |
| Other equipment | Straight-line method | 5 years | 0-5 | 19-20 |
3. Subsequent expenditures
Subsequent expenditures on fixed assets refer to renovation and reconstruction expenses, repaircosts, etc. incurred during the use of fixed assets. Subsequent expenditures such as the renewaland transformation of fixed assets, if they meet the conditions for capitalization, shall be includedin the cost of fixed assets, and book value of the replaced part shall be deducted; The repair costsof fixed assets that do not meet the conditions for capitalization are included in the current profitor loss when incurred.（XX） Construction in progressThe Company's construction in progress are classified into infrastructure projects, technicaltransformation projects, integrated energy service, information construction, etc.The initial book values of the fixed assets are stated at necessary expenditures incurred beforeconstruction in progress reaches the working conditions for its intended use. For construction inprogress that has reached working conditions for its intended use but for which the completion ofsettlement has not been handled, it shall be transferred into fixed assets at the estimated valueaccording to the project budget, construction price, actual cost, etc. from the date when it reachesthe working conditions for its intended use. And the fixed assets shall be depreciated inaccordance with the Company’s policy on depreciation of fixed assets. Adjustment shall be madeto the originally and provisionally estimated value based on the actual cost after the completion ofsettlement is handled, but depreciation provided will not be adjusted.The standards for construction in progress to be transferred to fixed assets when they reach thecondition for its intended use are as follows:
| Item | Criteria and time point for transfer to fixed assets |
| Buildings and constructions | (1) The main construction project and supporting projects have been substantially completed; (2) When the construction project meets the requirements for predetermined design, it must be accepted by the survey, design, construction, supervision and other entities; (3) Acceptance by external departments such as fire protection department, state-owned land department and planning department, etc.; (4) If a construction project has reached the intended usable state but has not yet completed the final settlement, it shall be transferred to fixed assets at an estimated value based on the actual cost of the project from the date on which it reaches the intended usable state. |
| Machinery equipment | (1) Relevant equipment and other supporting facilities have been installed; (2) The equipment can maintain normal and stable operation for a period of time after debugging; (3) The production equipment can stably produce qualified products over a period of time; (4) The equipment has been inspected and accepted by asset managers and users. |
（XXI） Borrowing costs
1. Recognition principles for capitalization of borrowing costs
The borrowing costs include borrowing interest, amortization of discounts or premiums, auxiliary
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
expenses, and exchange differences arising from foreign currency borrowings, etc.The borrowing costs incurred by the company that can be directly attributed to the purchase,construction or production of assets that meet the capitalization conditions shall be capitalized andincluded in the related asset cost; Other borrowing costs are recognized as expenses based on theamount incurred when incurred and included in the current profit or loss.Assets eligible for capitalization refer to fixed assets, investment properties, inventories and otherassets which may reach their intended use or sale status only after long-time acquisition andconstruction or production activities.Capitalization of borrowing costs begins when the following conditions are met at the same time:
(1) asset expenditures having occurred. Asset expenditures include expenditures in the form ofcash payments, transfers of non-cash assets or interest-bearing debts for the acquisition,construction or production of assets that meet capitalization conditions;
(2) borrowing costs having been incurred;
(3) the purchase, construction or production activities necessary to bring the asset to its intendedusable or salable state having begun.
2. Period of capitalization of borrowing costs
The capitalization period refers to the period from the time point at which capitalization ofborrowing costs commences to the time point at which capitalization ceases, excluding the periodduring which capitalization of borrowing costs is suspended.When the acquisition, construction or production of assets that meet the capitalization conditionsreaches the intended usable or salable state, the capitalization of borrowing costs ceases.When part of the projects in the acquisition, construction or production of assets that meet thecapitalization conditions are completed and can be used independently, the capitalization ofborrowing costs of this part of the assets ceases.If each part of an asset purchased, constructed or produced is completed separately, but it cannotbe used or sold until the entirety is completed, capitalization of borrowing costs stops when theentire asset is completed.
3. Capitalization suspension period
If an asset that meets the capitalization conditions is abnormally interrupted during the acquisition,construction or production process, and the interruption lasts for more than 3 months, thecapitalization of borrowing costs is suspended; If the interruption is a necessary procedure for theacquired, constructed or produced assets that meet the capitalization conditions to reach theintended usable or salable state, the capitalization of borrowing costs continues. Borrowing costsincurred during the interruption period are recognized as current profit or loss, and the
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
capitalization of borrowing costs continues until the acquisition, construction or productionactivities of the assets restart.
4. Calculation method for capitalization of borrowing costs rate and capitalization amountFor special borrowings for the purpose of purchasing, constructing or producing assets eligible forcapitalization, the capitalization amount of borrowing costs is determined by the actual borrowingcosts incurred in the period of the special borrowing, less the amount of interest income earned onthe unused borrowed funds deposited in the bank or investment income earned on the temporaryinvestment.For general borrowings taken up for the acquisition or production of assets eligible forcapitalization, the amount of borrowing costs to be capitalized is determined by multiplyingweighted average of the asset expenditures that exceed special borrowings by the capitalizationrate of the general borrowings general borrowings used. The capitalization rate is calculated anddetermined based on the weighted average interest rate of general borrowings.（XXII） Right-of-use assetsExcept for short-term leases and leases of low value assets, the Company recognizes the right-of-use assets for the lease on the lease commencement date. The lease commencement date refers tothe date when the lessor provides the leased assets for use by the Company. Right-of-use assets areinitially measured at cost. This cost includes:
1. The initial measurement amount of the lease liabilities;
2. For lease payments paid on or before the lease commencement date, if there is a lease incentive,the amount related to the lease incentive enjoyed shall be deducted;
3. Initial direct costs incurred by the Company;
4. The costs that the Company expects to incur to dismantle and remove leased assets, restore thesite where leased assets are located, or restore leased assets to the state stipulated in the leaseterms, but does not include costs incurred for the production of inventories.The Company shall make provision for depreciation of the right-of-use assets with reference to therelevant depreciation provisions of Accounting Standards for Business Enterprises No. 4 - FixedAssets. If the Company can reasonably determine that the ownership of leased assets will beobtained at the expiration of the lease term, the right-of-use assets shall be depreciated within theremaining useful life of the leased assets. If there is no reasonable assurance that the ownership ofthe leased assets can be obtained at the expiration of the lease term, the depreciation shall be madewithin the shorter of the lease term or the remaining useful life of the leased assets.The Company determines whether the right-of-use assets have been impaired in accordance withthe Accounting Standards for Business Enterprises No. 8 - Asset Impairment, and carries outaccounting treatment for the identified impairment losses.
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
（XXIII） Intangible assetsIntangible assets including land use right, patented technology, software, etc., are initiallymeasured at actual cost.
1. Valuation method of intangible assets
(1) The Company shall initially measure the intangible assets at cost when obtaining the sameThe cost of outsourced intangible assets includes the purchase price, relevant taxes and otherexpenses directly attributable to bringing the assets to the intended use. If the purchase price ofintangible assets is deferred beyond normal credit conditions and is essentially financing in nature,the cost of intangible assets is determined based on the present value of the purchase price.The book value of intangible assets acquired in a debt restructuring for use by the debtor against adebt are determined based on the fair value of the claim waived and other costs directlyattributable to bringing the asset to its intended use, such as taxes, and the difference between thefair value of the claim waived and the book value of the intangible assets is recognized in currentprofit or loss.Provided that the exchange of non-monetary assets has commercial substance and the fair value ofboth the assets exchanged in and the assets exchanged out can be measured reliably, the intangibleassets exchanged in by exchange of non-monetary assets are recorded at their fair value based onthe fair value of the assets exchanged out, unless there is conclusive evidence that the fair value ofthe assets exchanged in is more reliable; For exchange of non-monetary assets that do not meet theabove prerequisites, the book value of the exchanged assets and related taxes payable arerecognized as the cost of the intangible assets exchanged, and profit or loss is derecognized.
(2) Subsequent measurement
Analyze and determine service life of intangible assets when acquiring them.For intangible assets with limited service life, they are amortized on straight-line method withinthe period that they bring economic benefits to the enterprise; If it is not foreseeable thatintangible assets will bring economic benefits to the enterprise, they are regarded as intangibleassets with indefinite service life and are not amortized.
2. Estimated service life of intangible assets with limited service life
| Category | Amortization method | Amortization period (year) | Basis for use |
| Land use right | Straight-line method | 30-50 | Within the validity period of the land title certificate |
| Patented technology | Straight-line method | 10 | Patent certificate |
| Software | Straight-line method | 5 | Software availability period |
3. Basis for judgment of intangible assets with indefinite service life and procedures forreviewing their service life
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
When reviewing the service life of intangible assets with indefinite service life, the service life isestimated and amortized in accordance with the amortization policy for intangible assets withlimited service life, if there is evidence that the period over which the intangible asset will provideeconomic benefits to the enterprise is foreseeable.
4. Specific criteria for dividing research and development stages
The expenditures of the Company's internal research and development projects are divided intoexpenditures in the research stage and expenditures in the development stage.Research stage: the stage of creative and planned investigation and research activities to obtainand understand new scientific or technical knowledge.Development stage: the stage in which research results or other knowledge are applied to a certainplan or design to produce new or substantially improved materials, devices, products, etc. beforecommercial production or use.Development stage expenditures meet specific criteria for capitalizationExpenditures during the development stage of internal research and development projects arerecognized as intangible assets when the following conditions are met:
(1) It is technically feasible to complete the intangible assets so that it can be used or sold;
(2) Have the intention to complete the intangible assets and use or sell it;
(3) The usefulness of methods for intangible assets to generate economic benefits shall be proved,including being able to prove that there is a potential market for the products manufactured byapplying the intangible assets or there is a potential market for the intangible assets themselves orthe intangible assets will be used internally;
(4) Have sufficient technical, financial and other resource support to complete the development ofthe intangible assets, and have the ability to use or sell the intangible assets;
(5) Expenditures attributable to the development stage of the intangible assets can be measuredreliably.（XXIV） Asset impairmentFor long-term assets such as long-term equity investments, investment properties measured underthe cost model, fixed assets, construction in progress, right-of-use assets, and intangible assetswith limited useful lives, if there are signs of impairment on the balance sheet date, an impairmenttest shall be conducted. If the results of impairment test indicate that the recoverable amount ofassets is less than its book value, a provision for impairment is made based on the difference andthe assets are recognized as impairment losses. The recoverable amount is the net of the fair valueof the assets less costs of disposal and the current value of the expected future cash flows from theassets (whichever is higher). Provision for asset impairment is calculated and recognized on thebasis of individual assets. If it is difficult to estimate the recoverable amount of an individual asset,the recoverable amount of an asset group is determined based on the asset group to which the assetbelongs. The asset group is the smallest combination of assets that can independently generatecash inflows.Goodwill, intangible assets with indefinite service life, and intangible assets that have not yetreached a usable state are subject to impairment test at least at the end of each year.The Company performs the impairment test for goodwill. For the book value of goodwill arisingfrom a business combination, the Company amortizes it to the relevant asset group on a reasonablemethod from the purchase date; If it is difficult to be amortized to the relevant asset group, it isamortized to the relevant portfolio of asset groups. When amortizing the book value of goodwill,the Company amortizes it based on the relative benefits that the relevant asset groups or portfolioof asset groups can obtain from the synergies of business combination, and performs goodwillimpairment test on this basis.In the impairment test for the relevant asset group or combination of asset groups containinggoodwill, if there are indications of impairment for the asset group or combination of asset groups
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
related to goodwill, the asset group or combination of asset groups that does not contain goodwillis first tested for impairment, the recoverable amount is calculated and compared with the relevantbook value, and corresponding impairment losses are recognized. An impairment test is thenperformed on the asset group or combination of asset groups containing goodwill by comparingthe book value of the relevant asset group or combination of asset groups (including the part of thebook value of the goodwill apportioned to it) with its recoverable amount. If the recoverableamount of the relevant asset group or combination of asset groups is less than its book value,impairment losses on goodwill are recognized. Once the above-mentioned asset impairment lossesare recognized, they will not be reversed in subsequent accounting periods.（XXV） Long-term deferred expenses
1. Amortization method
The Company's long-term deferred expenses refer to various expenses that have been incurred butthe benefit period is more than one year (excluding one year). Long-term deferred expenses areamortized in installments according to the benefit period of the expense item. If a long-termdeferred expense item cannot benefit future accounting periods, all the amortized value of the itemthat has not been amortized will be transferred to the current profit or loss.The renovation of lease premises is recognized as long-term deferred expenses and amortized overthe shorter of the following two periods:
(1) the estimated service life of the renovation (the estimated time until the next renovation);
(2) the estimated remaining service life of the main structure of the property
The Company's subsequent expenditure that do not meet the conditions for recognition of fixedassets, such as major repair costs, are recognized as long-term deferred expenses in the year theyoccur, and are subsequently amortized in installments during the benefit period.
2. Amortization period
| Item | Amortization period |
| Renovation of rented fixed assets | The estimated service life of the renovation and the estimated remaining service life of the main structure of the property (whichever is shorter). |
| Expenditures for capital repairs of fixed assets | Overhaul cycle for gas generator unit |
（XXVI） Contract liabilitiesContract liabilities refer to the Company's obligation to transfer goods or services to customers forconsideration received or receivable from customers. Contract assets and contract liabilities underthe same contract are presented in the net term.（XXVII） Employee compensation
1. Accounting treatments of short-term compensation
During the accounting period when employees provide services for the Company, the Companyrecognizes the actual short-term compensation as a liability and includes it in the current profit orloss or related asset costs.The Company contributes social insurance premiums and housing fund for its employees, as wellas labor union fund and employee education expenses withdrawn as required, and calculates anddetermines the corresponding amount of employee compensation in accordance with theprescribed accrual basis and accrual ratio during the accounting period in which the employeesrender services to the Company.For non-monetary employee benefits, if they can be measured reliably, they are measured at fairvalue.
2. Accounting treatments for post-employment benefits
Defined contribution plansThe Company pays basic endowment insurance and unemployment insurance for its employees in
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
accordance with relevant regulations of the local government. During the accounting period whenemployees provide services to the Company, the amount payable is calculated based on thepayment base and ratio stipulated by the local government, and is recognized as a liability andincluded in current profit or loss or related asset costs.In addition to basic endowment insurance, the Company has also established an enterprise annuitypayment system (supplementary endowment insurance)/enterprise annuity plan in accordance withthe relevant policies of the national enterprise annuity system. The Company pays contributions tolocal social insurance institutions/annuity plans based on a certain ratio of total employee wages,and includes the corresponding expenditures in current profit or loss or related asset costs.
3. Accounting treatments for dismissal benefits
When the Company cannot unilaterally withdraw dismissal benefits provided by the terminationof labor relationship plan or redundancy proposal, or when it recognizes the costs or expensesrelated to the restructuring involving the payment of dismissal benefits (whichever is earlier),employee compensation liabilities arising from dismissal benefits are recognized and included incurrent profit or loss.（XXVIII） Lease liabilitiesExcept for short-term leases and leases of low value assets, the Company makes initialmeasurement of the lease liabilities on the lease commencement date according to the presentvalue of the unpaid lease payments on that date. In calculating the present value of the leasepayments, the Company uses the interest rate implicit in the lease as the discount rate, and if theinterest rate implicit in the lease cannot be determined, the incremental borrowing rate is used asthe discount rate.Lease payments are payments made by the Company to the lessor in connection with the right touse the leased assets during the lease term, including:
1. Fixed payment amount (including substantial fixed payment amount), if there is any leaseincentive, the relevant amount of the lease incentive shall be deducted;
2. Variable lease payments depending on the index or ratio;
3. The Company reasonably determines the exercise price of the purchase option to be exercised;
4. The lease term reflects the amount to be paid by the Company for exercising the option toterminate the lease;
5. The amount expected to be paid according to the residual value of the guarantee provided by theCompany.The variable lease payments depending on the index or ratio is determined at the initialmeasurement according to the index or ratio on the commencement date of the lease term. Thevariable lease payments not included in the measurement of lease liabilities shall be included inthe current profit or loss or the related asset cost when they actually occur.After the lease commencement date, the Company calculates the interest expenses of the leaseliabilities for each period of the lease term at a fixed periodic interest rate and includes it in thecurrent profit or loss or related asset cost.After the lease commencement date, if the following circumstances occur, the Company will re-measure lease liabilities and adjust the corresponding right-of-use assets. If the book value ofright-of-use assets has been reduced to zero, but lease liabilities still need to be further reduced,the Company will include the difference in the current profit or loss.
1. If the lease term changes or the evaluation result of the purchase option changes, the Companyshall remeasure the lease liabilities according to the present value calculated by the changed leasepayments and the revised discount rate;
2. If the estimated amount payable according to the guaranteed residual value or the index or ratioused to determine the lease payments changes, the Company remeasures the lease liabilitiesaccording to the changed lease payments and the present value calculated by the original discount
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
rate. If the change in lease payments is due to the change in floating interest rate, the reviseddiscount rate shall be used to calculate the present value.Lease liabilities are presented as current liabilities or non-current liabilities in the balance sheetaccording to their liquidity. The ending book value of non-current lease liabilities maturing withinone year from the balance sheet date shall be reflected in the item of "non-current liabilitiesmaturing within one year".（XXIX） Estimated liabilities
1. Recognition criteria for estimated liabilities
The Company recognizes the obligations related to contingencies such as litigation, debtguarantees, onerous contracts, restructuring matters, etc. as estimated liabilities when thefollowing conditions are met at the same time:
(1) the obligation being the current obligation of the Company;
(2) the performance of the obligation being likely to cause economic benefits to flow out theCompany;
(3) the amount of the obligation being able to be measured reliably.
2. Measurement methods for various types of estimated liabilities
The Company's estimated liabilities are initially measured at best estimate of the expendituresrequired to perform the related present obligations.When determining best estimate, the Company comprehensively considers factors such as risks,uncertainty and time value of money related to contingencies. Where the effect on the time valueof money is material, the best estimate is determined by discounting the relevant future cashoutflows.Best estimate is treated separately as follows:
If there being a continuous range (or interval) of required expenditures, and various outcomeswithin the range are equally likely to occur, best estimate is determined based on the middle valueof the range, that is, the average of the upper and lower limits.If there being no continuous range (or interval) of required expenditures, or if there being acontinuous range but the probabilities of occurrence of the various results within the range are notthe same, the best estimate is determined on the basis of the most probable amount to be incurredif the contingency relates to a single item; If the contingency involves multiple projects, bestestimate is calculated and determined based on various possible outcomes and relatedprobabilities.If all or part of the Company's expenses required to settle estimated liabilities are expected to becompensated by a third party, the compensation amount is recognized separately as an asset whenit is basically certain that it can be received. The recognized compensation amount shall notexceed the book value of estimated liabilities.（XXX） RevenueDisclosure of accounting policies adopted for revenue recognition and measurement according tobusiness type. The Company's revenue mainly comes from the following business types:
(1) Revenue from power production and sales; (2) Revenue from integrated energy services; (3)Other revenue.
1. General principles
If the Company fulfills its performance obligations under a contract, that is, when the customerobtains right of control of the relevant goods or services, revenue is recognized. Performanceobligations are contractual commitments in which the Company transfers clearly distinguishablegoods or services to the customer. Obtaining right of control of the relevant goods or servicesrefers to the ability to control the use of the goods or the provision of the services and to derivevirtually all of the economic benefits therefrom.
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
If one of the following conditions is met, it is performance obligations to be fulfilled within acertain period of time, and the Company recognizes revenue over a period of time in accordancewith the performance progress: (1) the customer obtaining and consuming the economic benefitsarising from the Company's performance at the same time as the Company's performance; (2) thecustomer being able to control the goods under construction during the Company's performance;
(3) the goods produced by the Company during the performance of the contract havingirreplaceable uses, and the Company having the right to collect payment for the cumulativeperformance part completed so far during the entire contract period. Otherwise, the Companyrecognizes revenue at the time point at which the customer obtains the right of control of therelated goods or services.
2. Sales with a quality guarantee clause
For sales with a quality guarantee clause, if the quality guarantee provides a separate service to thecustomer in addition to the assurance that the goods or services sold meet standards specifiedherein, the quality guarantee constitutes an individual performance obligation. Otherwise, theCompany accounts for the quality assurance liability in accordance with the provisions of theAccounting Standards for Business Enterprises No. 13 - Contingencies.
3. Identification of the person with main liabilities and the agent
The Company identifies itself as the person with main liabilities or the agent when engaging intransactions based on whether it has the right of control of the goods or services beforetransferring them to the customer. If the Company has the right of control of the goods or servicesbefore transferring them to the customer, the Company identifies itself as the person with mainliabilities and recognizes revenue based on the total consideration received or receivable;Otherwise, the Company identifies itself as the agent and recognizes revenue based on the amountof commissions or handling charges that may be received. This amount is determined according tothe net amount after deducting the price payable to other related parties from the totalconsideration received or receivable, or according to the specified commissions amount, ratio orother factors.
4. Principles
If the Company fulfills its performance obligations under a contract, that is, when the customerobtains right of control of the relevant goods or services, revenue is recognized. Obtaining right ofcontrol of the relevant goods or services refers to the ability to control the use of the goods or theprovision of the services and to derive virtually all of the economic benefits therefrom.
(1) Revenue from power production and sales
When the power is transmitted to the power grid company specified in the power sales contract,which means the power grid company has obtained the right of control of the power, the Companyshall recognize the reported sales revenue.
(2) Revenue from integrated energy services
The revenue of services provided between the Company and customers mainly includesengineering labor and services such as operation and maintenance, management, commissioning,and overhaul, as well as energy service revenue for industrial and commercial energy storage andpower sales. If multiple performance obligations are involved, they should be reasonably split, andequipment sales should be handled with reference to the sale of goods business. The provision oflabor and services is generally dealt with according to the output method based on theperformance obligation fulfilled within a certain time period. Requirements are as follows:
1) Sales of supporting equipment
For sales of equipment, revenue shall be recognized when the customer obtains the right of controlthe equipment. In general, the recognition time point shall be the time when the customer signsafter receiving the completed or delivered products. Based on the terms of the Contract, therequired attachments for revenue recognition include but are not limited to the sales contract,commodity shipping order, customer receipt sheet, equipment acceptance sheet or customsdeclaration form, etc.
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
2) Labor and services provided
① The recognition and settlement of revenue from such business shall comply with the provisionsof the business contract signed by both parties. At the end of each settlement period, the necessarydocuments stipulated in the Contract, such as the attendance sheet, service application form, etc.confirmed by both parties shall be provided as the proof of the cumulative revenue recognition ofthe settlement period and materials for collecting service price.
② On each balance sheet date within the settlement period, revenue shall be tentatively estimatedbased on the performance progress. When using the output method to determine the performanceprogress, the progress is usually determined in combination with the actual measured completionprogress, assessment of achieved results, achieved milestones, progress of the schedule, completedor delivered products and other output indicators.
3) Energy service income from industrial and commercial energy storage and power salesFor the industrial and commercial energy storage service business, after the expiration of eachsettlement cycle, check and confirm the charging and discharging records of the energy storageproject with the customer, and sign the confirmation form of electricity charge settlement ofenergy storage power station, tentatively estimate the confirmation revenue of service fees, andmake formal settlement according to the actual electricity bill issued by the power supply bureauat the beginning of each month, adjust the tentatively estimated revenue, and confirm the energyservice revenue.For power sales service, the energy service revenue of the current month shall be confirmedaccording to the power sales revenue statement of Guangdong Power Exchange Co., Ltd.（XXXI） Contract costs
1. Cost of contract acquisition
The incremental costs incurred by the Company to obtain the Contract (that is, costs which wouldnot have been incurred without obtaining the Contract) that may be recovered shall be recognizedas an asset and amortized on the same basis as the revenue recognition of goods or services relatedto the asset. In addition, the asset shall be included in the current profit or loss. If the amortizationperiod of the asset does not exceed one year, the asset shall be included in the current profit or losswhen incurred. Other expenses incurred by the Company to obtain the contract shall be includedin the current profit or loss when incurred, unless otherwise the expenses are borne by thecustomer.
2. Contract performance cost
The costs incurred by the Company to perform the Contract are recognized as an asset if they donot fall within the scope of other provisions specified in the Accounting Standards for BusinessEnterprises other than the revenue standards and meet all the following conditions: (1) when thecost is directly related to an existing or expected contract; (2) when the cost increases theCompany resources for fulfilling performance obligations in the future; (3) when the cost isexpected to be recovered. The above-mentioned asset shall be amortized on the same basis as therevenue recognition of goods or services related to the asset and included in the current profit orloss.
3. Impairment of contract costs
When recognizing impairment losses of assets related to contract costs, the Company shall firstrecognize impairment losses of other assets related to the Contract that are recognized inaccordance with other relevant accounting standards for business enterprises; Then, if book valueis higher than difference between the remaining consideration expected to be obtained by theCompany for the transfer of the goods related to the asset and the estimated cost to be incurred forthe transfer of the related goods, provision for impairment shall be made for the excess, and itshall be recognized as the asset impairment loss.If the factors of impairment in the previous period subsequently changed, causing theaforementioned difference to be higher than the book value of the asset, provision for assetimpairment that has been made previously shall be reversed and the higher part shall be included
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
in the current profit or loss, but the book value of the asset after the reversal shall not exceed thebook value of the asset on the date of reversal assuming no provision for impairment is made.（XXXII） Government subsidies
1. Type
Government subsidies refer to the monetary and non-monetary assets obtained by the Companyfrom the government free of charge. Government subsidies are divided into asset-relatedgovernment subsidies and income-related government subsidies.Asset-related government subsidies refer to government subsidies obtained by the Company andused to purchase, construct or otherwise form long-term assets. Income-related governmentsubsidies refer to government subsidies other than asset-related government subsidies.
2. Recognition time point
If there is evidence that the Company can meet the relevant conditions stipulated in the financialsupport policy and is expected to receive financial support funds, government subsidies shall berecognized based on the amount receivable. Otherwise, government subsidies shall be recognizedwhen they are actually received.If government subsidies are monetary assets, they shall be measured at the amount received orreceivable. If government subsidies are non-monetary assets, they shall be measured at the fairvalue; If the fair value cannot be obtained reliably, government subsidies shall be measured at thenominal amount (RMB 1). Government subsidies measured at the nominal amount shall bedirectly included in the current profit or loss.
3. Accounting treatment
Asset-related government subsidies shall be used to offset the book value of the relevant assets orrecognized as the deferred income. Government subsidies which are recognized as the deferredincome shall be included in the current profit or loss in installments according to a reasonable andsystematic method within service life of the relevant assets (if the government subsidies arerelated to the daily activities of the Company, the subsidies shall be included in other income; ifthe government subsidies are not related to the daily activities of the Company, the subsidies shallbe included in non-operating revenue).Income-related government subsidies that are used to compensate the Company for relevant costsor losses in subsequent periods shall be recognized as the deferred income and included in thecurrent profit or loss (if the government subsidies are related to the daily activities of theCompany, the subsidies shall be included in other income; if the government subsidies are notrelated to the daily activities of the Company, the subsidies shall be included in non-operatingrevenue) or used to offset relevant costs or losses; If the subsidies are used to compensate for therelevant costs or losses incurred by the Company, the subsidies shall be directly included in thecurrent profit or loss (if the government subsidies are related to the daily activities of theCompany, the subsidies shall be included in other income; if the government subsidies are notrelated to the daily activities of the Company, the subsidies shall be included in non-operatingrevenue) or used to offset relevant costs or losses.The policy-based preferential loan interest subsidies obtained by the Company will be accountedfor differently in the following two situations:
(1) if the central finance allocates interest subsidies to the lending bank, and the lending bankprovides loans to the Company at a policy-based preferential interest rate, the Company will usethe actual loan amount received as the entry value of the loan and calculate related borrowingcosts based on the loan principal and the policy-based preferential interest rate.
(2) if the central finance directly allocates interest subsidies to the Company, the Company willuse the corresponding interest subsidies to offset related borrowing costs.（XXXIII） Deferred tax assets and deferred tax liabilitiesFor deductible temporary differences, deferred tax assets shall be recognized with the taxableincome that is likely to be obtained in the subsequent period to offset deductible temporary
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
differences as the limit. For deductible losses and tax credits which can be carried forward tosubsequent years, the corresponding deferred tax assets shall be recognized with the future taxableincome that is likely to be obtained to offset deductible losses and tax credits as the limit.For taxable temporary differences, except in special circumstances, the deferred tax liabilities shallbe recognized.Special circumstances in which deferred tax assets or deferred tax liabilities are not recognizedinclude: initial recognition of goodwill; Other transactions or matters, except for businesscombination, that affect neither accounting profits nor taxable income (or deductible losses) whenincurred.When the Company is entitled to the legal right to settle on a net basis and intends to settle on anet basis or obtain assets and pay off liabilities at the same time, the current income tax assets andcurrent income tax liabilities shall be reported at the net amount after offsetting.When the Company is entitled to settle current income tax assets and current income tax liabilitieson a net basis, and deferred tax assets and deferred tax liabilities are related to income tax leviedby the same taxation department on the same taxpayer or different taxpayers, but in eachsignificant period when deferred tax assets and liabilities are reversed, if the taxpayer involvedintends to settle current income tax assets and liabilities on a net basis or obtain assets and pay offliabilities at the same time, deferred tax assets and deferred tax liabilities shall be reported at thenet amount after offsetting.（XXXIV） LeaseLease refers to a contract whereby the lessor transfers the right to use an asset to the lessee inexchange for consideration for a certain period of time.
1. The Company acts as a lessee
The Company shall determine the right-of-use assets on the starting date of the lease term andrecognize lease liabilities based on the present value of the unpaid lease payments. Leasepayments include fixed payments and amounts payable when the purchase option or option toterminate lease is likely to be exercised. Variable rent determined based on a certain ratio of salesamount shall not be included in lease payments and shall be included in the current profit or losswhen actually incurred.The Company's right-of-use assets include leased buildings and constructions, machineryequipment, means of transport, computers and electronic equipment, etc.For short-term leases with lease term of no more than 12 months and leases of low value assetswith a single asset at a low value when it is new, the Company will not to recognize right-of-useassets and lease liabilities, and the relevant rental expenses will be calculated based on thestraight-line method in each period during lease term and included in the current profit or loss orrelated asset costs.
2. The Company acts as a lessor
Financing lease refers to the lease that basically transfers all the risks and rewards related to theownership of leased assets. Other leases are operating leases.
(1) Operating leases
When the Company rents out its own buildings, machinery equipment and means of transport, therental revenue from operating leases is recognized in accordance with the straight-line methodduring lease term. Variable rents, which are determined by the Company at a certain percentage ofsales, are included in rental revenue when actually incurred.
(2) Financing lease
On the commencement date of the lease term, the Company recognizes the finance leasereceivables for the financing lease and terminates the derecognition of related assets. TheCompany lists finance lease receivables as long-term receivables, while the finance leasereceivables collected within one year (including) from the balance sheet date are listed as non-
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
current assets due within one year.（XXXV） Special reserveThe work safety expenses extracted from the Company's power production and sales business inaccordance with national regulations are included in the cost of related products or current profitor loss as well as in the "special reserve" account. The currently accrual standard is based onoperating revenue of the previous year, using an excess regressive method to determine the accrualamount for the current year. Such amount shall be withdrawn evenly every month, and be includedin the cost of related products or current profit or loss as well as in the "special reserve" account.When the Company uses special reserve, the amount shall be charged directly to the specialreserve if it belongs to cost of spending; If fixed assets are formed, they will be recognized asfixed assets when such assets reach the intended usable state; At the same time, special reserve isoffset according to the cost of fixed assets formed, and accumulated depreciation of the sameamount shall be recognized. Such fixed assets will no longer be depreciated in subsequent periods.（XXXVI） Changes in significant accounting policies and accounting estimates
1. Significant changes in accounting policies
| Content and reasons for changes in accounting policies | Names of report items significantly affected | Affected amount |
| In October 2023, the Ministry of Finance issued the Interpretation No. 17 of the Accounting Standards for Business Enterprises (CK [2023] No. 21), which stipulates the relevant contents of "the division of current liabilities and non-current liabilities", "the disclosure of financing arrangements of the supplier" and "the accounting treatment of after-sales leaseback transactions". The interpretation shall come into force as of January 1, 2024 and be implemented by the Company as of January 1, 2024. | No impact | 0.00 |
| In March 2024 and December 2024, the Ministry of Finance compiled and issued the Compilation of Application Guidelines for Accounting Standards for Business Enterprises 2024 and issued the Accounting Standards for Business Enterprises Interpretation No. 18 (CK [2024] No. 24), stipulating that the estimated liabilities arising from the quality assurance that does not belong to the individual performance obligation shall be included in the "primary business costs" and "other business costs" according to the determined amount, and shall no longer be included in the "selling and distribution expenses". The Interpretation shall come into force as of the date of issuance, and the Company shall implement the Interpretation No. 18 of the Accounting Standards for Business Enterprises as of January 1, 2024. | No impact | 0.00 |
2. Changes in significant accounting estimates
| Content and reasons for changes in accounting estimates | Approval procedure | Changes in accounting estimates Effective time point | Remark |
| In order to further strengthen the management of fixed assets, by sorting out the fixed assets card information of the Company and its held subsidiary, and combining with the actual use of the Company's fixed assets, the Company, in accordance with the principle of prudence, adjusted the net residual value rate of the fixed assets of house decoration, machinery equipment (except for gas turbine generator unit), means of transport, electronic equipment and other equipment, from the original 10% to 0-5%. | It has been reviewed and approved by the Board of Directors and the Board of Supervisors | Effective from January 1, 2024 |
Description of changes in accounting estimates:
For details of the changes in accounting estimates of the Company, please refer to theAnnouncement No. 2024-022 Announcement of Shenzhen Nanshan Power Co., Ltd. onAdjustment of Residual Value Rate of Fixed Assets and Changes in Accounting Estimates.Taxes
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
（XXXVII） Main tax type and rates
| Tax type | Tax basis | Tax rate |
| Value-added tax | The output tax is calculated based on revenue from the sale of goods and taxable services calculated according to the tax law. After deducting the input tax allowed to be deducted in the current period, difference shall be the value-added tax payable. | 13%,9%,6%,5%,3% |
| Urban maintenance and construction tax | Based on the actual value-added tax and consumption tax paid | 7% |
| Education surcharge | Based on the actual value-added tax and consumption tax paid | 3% |
| Local education surcharge | Based on the actual value-added tax and consumption tax paid | 2% |
| Corporate income tax | Based on taxable income | Except for the following enterprises that enjoy tax preferential treatment, tax shall be paid at 25% of the taxable income. |
| Urban land use tax | For the actual occupied land area of industrial land in Nanshan District, Shenzhen, tax shall be paid at RMB 2-8/square meter. For the actual occupied land area of industrial land in Zhongshang, tax shall be paid at RMB 1/square meter. | |
| Foreign taxes | Foreign taxes shall be calculated according to the tax regulations of each overseas country and region. |
The tax subjects with different corporate income tax rates are as follows:
| Taxpayer name | Income tax rate |
| The Company | 15% |
| Shenzhen Nanshan Power Engineering Company | 15% |
（XXXVIII） Tax preferential treatment
1. Corporate income tax
(1) The Company obtained a national high-tech enterprise certificate numbered GR202444200365,which is valid for 3 years. From 2024 to 2026, the Company's corporate income tax enjoys apreferential income tax rate of 15% for high-tech enterprise.
(2) Shenzhen Nanshan Power Engineering Company obtained a national high-tech enterprisecertificate numbered GR202344200269, which is valid for 3 years. From 2023 to 2025, theCompany's corporate income tax enjoys a preferential income tax rate of 15% for high-techenterprise.
2. Value-added tax
| Tax type | Company name | Relevant laws, regulations and policies | Approval authority | Approval No. | Preference enjoyed | Validity period |
| Value-added tax | Shenzhen Nanshan Power Engineering Company | Measures for the Administration of Value-added Tax Exemption for Cross-border Taxable Activities in Replacement of Business Tax with Value-added tax | Shenzhen Qianhai State Taxation Administration | GJSWZJGG [2016] No. 29 | Value-added tax exemption for cross-border taxable activities | - |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
Notes to consolidated financial statements items（XXXIX） Monetary funds
| Item | Ending balance | Balance at the end of last year |
| Cash on hand | 30,264.98 | 30,329.83 |
| Bank deposits | 471,032,644.67 | 310,694,227.98 |
| Other monetary funds | 7,916,312.01 | 5,464,224.68 |
| Total | 478,979,221.66 | 316,188,782.49 |
| Including: total amount deposited abroad | 6,190,580.08 | 6,105,051.40 |
The details of monetary funds that have restrictions on their use due to mortgage, pledge orfreezing, as well as those deposited overseas with restrictions on repatriation are as follows:
| Item | Ending balance | Balance at the end of last year |
| L/G deposit | 7,912,100.00 | 5,453,862.93 |
| Total | 7,912,100.00 | 5,453,862.93 |
In addition, as at December 31, 2024, the Company had no monetary funds subject to therestriction to use due to mortgage, pledge or freezing and with potential recovery risks.（XL） Financial assets held for trading
| Item | Ending balance | Balance at the end of last year |
| Financial assets measured at fair value with changes included in the current profit or loss | 226,000,000.00 | |
| Including: investments in debt instruments | ||
| Investments in equity instruments | ||
| Derivative financial assets | ||
| Others (note) | 226,000,000.00 | |
| Financial assets designated as measured at fair value and whose changes are recorded in profit or loss for the period | ||
| Including: investments in debt instruments | ||
| Others | ||
| Total | 226,000,000.00 |
Note: Other financial assets held for trading of the Company are structured deposits deposited incommercial banks, which will mature by the end of 2024.（XLI） Accounts receivable
1. Disclosure of accounts receivable on an aging basis
| Aging | Ending balance | Balance at the end of last year |
| Within 1 year | 44,124,575.22 | 51,764,528.59 |
| 1 to 2 years | 21,094,465.13 | 40,359,448.07 |
| 2 to 3 years | 14,485,054.31 | 21,478,238.86 |
| Over 3 years | 3,648,959.88 | 5,464,799.07 |
| Total | 83,353,054.54 | 119,067,014.59 |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
2. Accounts receivable are classified and disclosed according to the method of provisionfor bad debts
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | 43,546,002.21 | 52.24 | 15,128,128.63 | 34.74 | 28,417,873.58 |
| Provision for bad debts on a credit risk portfolio basis | 39,807,052.33 | 47.76 | 407,900.00 | 1.02 | 39,399,152.33 |
| Total | 83,353,054.54 | 100.00 | 15,536,028.63 | 18.64 | 67,817,025.91 |
Continued
| Category | Balance at the end of last year | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | 5,464,799.07 | 4.59 | 5,464,799.07 | 100.00 | |
| Provision for bad debts on a credit risk portfolio basis | 113,602,215.52 | 95.41 | 1,626,964.42 | 1.43 | 111,975,251.10 |
| Total | 119,067,014.59 | 100.00 | 7,091,763.49 | 5.96 | 111,975,251.10 |
Important accounts receivable with provision for bad debts made on an individual basis:
| Description | Ending balance | |||
| Book balance | Provision for bad debts | Provision ratio (%) | Reasons for provision | |
| China Machinery Engineering Corporation | 40,018,348.65 | 11,600,475.07 | 28.99 | Not expected to be recovered |
| Shenzhen Petrochemical Oil Products Bonded Trading Co., Ltd. | 3,474,613.06 | 3,474,613.06 | 100.00 | Legacy matters from the distant past |
| Total | 43,492,961.71 | 15,075,088.13 | ||
Provision for bad debts made by portfolio:
Items accrued on a portfolio basis:
| Description | Ending balance | ||
| Accounts receivable | Provision for bad debts | Provision ratio (%) | |
| Portfolio II: receivables from power production and sales | 26,657,255.44 | - | |
| Portfolio III: receivables from integrated energy service | 13,149,796.89 | 407,900.00 | 3.10 |
| Total | 39,807,052.33 | 407,900.00 | 1.02 |
3. Provision for bad debts accrued, reversed or recovered for the current period
| Category | Balance at the end of last year | Amount of changes for the current period | Ending balance | ||
| Accrual | Reverse or recovery | Charge-off or write-off | |||
| Provision for bad debts on an individual basis | 5,464,799.07 | 11,600,475.07 | 1,937,145.51 | 15,128,128.63 | |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Category | Balance at the end of last year | Amount of changes for the current period | Ending balance | ||
| Accrual | Reverse or recovery | Charge-off or write-off | |||
| Provision for bad debts on a credit risk portfolio basis | 1,626,964.42 | 407,900.00 | 1,626,964.42 | 407,900.00 | |
| Total | 7,091,763.49 | 12,008,375.07 | 1,626,964.42 | 1,937,145.51 | 15,536,028.63 |
4. Accounts receivable from actual write-off for the current period
| Item | Write-off amount |
| Accounts receivable from actual written-off | 1,937,145.51 |
Important write-off of accounts receivable:
| Entity name | Nature of accounts receivable | Write-off amount | Reasons for write-off | Write-off procedures performed | Whether the payment is generated by related transactions |
| China Solibase Engineering Co., Ltd. | Engineering and technical services | 1,137,145.51 | The claim is time-barred due to the extended lapse of time and is deemed irrecoverable | Review by the Board of Directors | No |
| Total | 1,137,145.51 |
5. Accounts receivable and contract assets of the top five ending balances by debtors
| Entity name | Ending balance of accounts receivable | Ending balance of contract assets | Ending balance of accounts receivable and contract assets | Proportion to the total ending balance of accounts receivable and contract assets (%) | Ending balance of provision for bad debts of accounts receivable and provision for contract asset impairment |
| China Machinery Engineering Corporation | 40,018,348.65 | 40,018,348.65 | 47.96 | 11,600,475.07 | |
| Shenzhen Power Supply Bureau Co., Ltd. | 26,641,173.11 | 26,641,173.11 | 31.93 | - | |
| Shenzhen Energy Corporation | 4,404,385.09 | 4,404,385.09 | 5.28 | - | |
| Power China Hubei Engineering Co., Ltd. | 4,079,000.00 | 88,000.00 | 4,167,000.00 | 4.99 | 407,900.00 |
| Shenzhen Petrochemical Bonded Oil Trading Co., Ltd. | 3,474,613.06 | 3,474,613.06 | 4.16 | 3,474,613.06 | |
| Total | 78,617,519.91 | 88,000.00 | 78,705,519.91 | 94.32 | 15,482,988.13 |
（XLII） Advances to suppliers
1. Advances to suppliers are listed based on aging
| Aging | Ending balance | Balance at the end of last year | ||
| Book balance | Ratio (%) | Book balance | Ratio (%) | |
| Within 1 year | 18,960,631.08 | 99.47 | 26,780,454.52 | 99.67 |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Aging | Ending balance | Balance at the end of last year | ||
| Book balance | Ratio (%) | Book balance | Ratio (%) | |
| 1 to 2 years | 90,037.73 | 0.47 | 72,700.00 | 0.27 |
| 2 to 3 years | ||||
| Over 3 years | 11,683.23 | 0.06 | 16,021.07 | 0.06 |
| Total | 19,062,352.04 | 100.00 | 26,869,175.59 | 100.00 |
Note: there were no advances to suppliers with an aging of more than one year and a significantamount at the end of the period.
2. Prepayments of the top five ending balances by prepayment objects
| Prepayment object | Ending balance | Proportion in total ending balance of advances to suppliers (%) |
| Shenzhen Gas Group Co., Ltd. | 16,187,956.50 | 84.92 |
| Zhongshan Nanlang Town Property Management Co.,Ltd. | 1,832,916.00 | 9.62 |
| Shenzhen OCT Property (Group) Co., Ltd. Commercial Property Management Branch | 249,600.00 | 1.31 |
| Shenzhen Branch of Ping An Pension Insurance Co., Ltd. | 120,742.00 | 0.63 |
| Hangzhou Motanni Technology Co., Ltd. Shenzhen Branch | 65,094.34 | 0.34 |
| Total | 18,456,308.84 | 96.82 |
（XLIII） Other receivables
| Item | Ending balance | Balance at the end of last year |
| Interest receivable | ||
| Dividends receivable | ||
| Other receivables | 131,831,575.62 | 19,233,117.52 |
| Including: land acquisition and storage compensation receivable (Note) | 112,298,115.00 | |
| Total | 131,831,575.62 | 19,233,117.52 |
Note: the receivable for land acquisition and storage compensation pertains to the remainingoutstanding compensation payment for Plot A, recognized by the subsidiary Shenzhen NanshanPower Zhongshan Company. The details are as follows:
On December 12, 2023, Shenzhen Nanshan Power Zhongshan Company signed the Agreement onthe Recovery of State-Owned Land Use Rights and the Relocation Compensation Agreement withthe Cuiheng New District Management Committee. The agreements confirm the compensated landreserve acquisition by the Cuiheng New District Management Committee of three parcels of state-owned land use rights held by Shenzhen Nanshan Power Zhongshan Company in the HengmenIndustrial Zone, Nanlang Street, Cuiheng New District, Zhongshan City, with a total landacquisition and storage compensation amount to RMB 584,453,529. Cuiheng New DistrictManagement Committee entrusted Zhongshan Xiwan Construction Investment Co., Ltd. to payand advance the project compensation funds.On November 4, 2024, in order to ensure the construction land demand of the 300 MW/600 MWhindependent energy storage power station (Phase I) project in Cuiheng New District, ZhongshanCity, and ensure the smooth progress of the land acquisition and storage of Shenzhen NanshanPower Zhongshan Company, Shenzhen Nanshan Power Zhongshan Company and Cuiheng NewDistrict Management Committee signed a Supplementary Agreement, which divided the original
434.86 mu plot into two parts, namely Plot A and Plot B, of which Plot A was about 190.87 mu,
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
and the compensation price was RMB 224,711,593; Plot B was about 244 mu, and thecompensation price was RMB 359,741,936.On November 29, 2024, Shenzhen Nanshan Power Zhongshan Company has signed the LandTransfer Confirmation Letter with Cuiheng New District Management Committee for Plot A tocomplete the transfer confirmation; At the same time, in accordance with the agreement, ShenzhenNanshan Power Zhongshan Company submitted an application to the Zhongshan MunicipalBureau of Natural Resources for land recovery of all the plot of 434.86 mu, and obtained theDecision on Administrative Handling on December 5, 2024, completing the cancellation ofregistration of the project land. According to the Accounting Standards for Business Enterprisesand the CSRC's Guidelines for the Application of Regulatory Rules - Accounting No. 3, Plot A hasmet the conditions for derecognition. As of the end of 2024, the compensation price of Plot A hasbeen collected in total of RMB 112,413,478. According to the agreement, the remaining paymentof RMB 112,298,115 will be made by December 31, 2026 at the latest.
1. Other receivables
(1) Other receivables disclosed by aging
| Aging | Ending balance | Balance at the end of last year |
| Within 1 year | 116,706,098.92 | 1,617,984.30 |
| 1 to 2 years | 322,956.77 | 3,356.31 |
| 2 to 3 years | ||
| Over 3 years | 46,193,178.82 | 48,002,435.80 |
| Total | 163,222,234.51 | 49,623,776.41 |
(2) Disclosure by category
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | 31,390,658.89 | 19.23 | 31,390,658.89 | 100.00 | - |
| Provision for bad debts on a credit risk portfolio basis | 131,831,575.62 | 80.77 | - | 131,831,575.62 | |
| Total | 163,222,234.51 | 100.00 | 31,390,658.89 | 19.23 | 131,831,575.62 |
Continued
| Category | Balance at the end of last year | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | 30,390,658.89 | 61.24 | 30,390,658.89 | 100.00 | |
| Provision for bad debts on a credit risk portfolio basis | 19,233,117.52 | 38.76 | 19,233,117.52 | ||
| Total | 49,623,776.41 | 100.00 | 30,390,658.89 | 61.24 | 19,233,117.52 |
Provision for bad debts made on an individual basis:
| Description | Ending balance |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Book balance | Provision for bad debts | Provision ratio (%) | Reasons for provision | |
| Huiyang Kangtai Industrial Company | 14,311,626.70 | 14,311,626.70 | 100.00 | Historical leftover items, which date back to long time ago and are expected to be irrecoverable |
| Receivables from employee benefit fund dividends and taxes | 9,969,037.63 | 9,969,037.63 | 100.00 | |
| Shandong Jinan Power Equipment Factory Co., Ltd. | 3,560,000.00 | 3,560,000.00 | 100.00 | |
| Receivables from purchase of employee dormitories | 1,736,004.16 | 1,736,004.16 | 100.00 | |
| Accounts receivable from Zhongshan cogeneration project | 1,000,000.00 | 1,000,000.00 | 100.00 | |
| Others | 813,990.40 | 813,990.40 | 100.00 | |
| Total | 31,390,658.89 | 31,390,658.89 | 100.00 |
Provision for bad debts made by portfolio:
| Description | Ending balance | ||
| Other receivables | Provision for bad debts | Provision ratio (%) | |
| Portfolio V: guarantee, deposit and petty cash portfolio | 3,674,076.67 | - | - |
| Portfolio VII: other receivables and temporary payments | 128,157,498.95 | - | - |
| Total | 131,831,575.62 | - | - |
(3) Provision provision for bad debts
| Provision for bad debts | The first stage | The second stage | The third phase | Total |
| Expected credit losses over the next 12 months | Expected credit loss for the entire duration (without credit impairment) | Expected credit loss for the entire duration (with credit impairment) | ||
| Balance at the end of last year | 30,390,658.89 | 30,390,658.89 | ||
| Balance at the end of the previous year in the current period | ||||
| --Transfer to the second stage | ||||
| --Transfer to the third stage | ||||
| --Reverse to the second stage | ||||
| --Reverse to the first stage | ||||
| Provision for the current period | 1,000,000.00 | 1,000,000.00 | ||
| Reverse for the current period | ||||
| Charge-off for the current period | ||||
| Write-off for the current period | ||||
| Other changes | ||||
| Ending balance | 31,390,658.89 | 31,390,658.89 |
(4) Provision for bad debts made, reversed or recovered for the current period
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Category | Balance at the end of last year | Amount of changes for the current period | Ending balance | ||
| Accrual | Reverse or recovery | Charge-off or write-off | |||
| Individual provision | 30,390,658.89 | 1,000,000.00 | 31,390,658.89 | ||
(5) There were no other receivables actually write-off in the current period
(6) Classification by nature of payment
| Nature of payment | Ending book balance | Book balance at the end of last year |
| Guarantee and deposit | 4,674,076.67 | 2,869,769.32 |
| Receivable from employees | 12,264,858.97 | 12,415,545.61 |
| Current accounts with external units | 146,283,298.87 | 34,338,461.48 |
| Total | 163,222,234.51 | 49,623,776.41 |
(7) Other receivables of the top five ending balances by debtors
| Entity name | Nature of payment | Ending balance | Aging | Proportion to the total ending balance of other receivables (%) | Ending balance of provision for bad debts |
| Zhongshan Xiwan Construction Investment Co., Ltd. | Current accounts with external units | 112,298,115.00 | Within 1 year | 68.80 | |
| Huidong Xiefu Port Comprehensive Development Co., Ltd. | Current accounts with external units | 14,954,889.50 | Within 1 year, more than 5 years | 9.16 | |
| Huiyang Kangtai Industrial Company | Current accounts with external units | 14,311,626.70 | Over 5 years | 8.77 | 14,311,626.70 |
| Receivables from employee benefit fund dividends and taxes | Receivable from employees | 9,969,037.63 | Over 5 years | 6.11 | 9,969,037.63 |
| Shandong Jinan Power Equipment Factory Co., Ltd. | Current accounts with external units | 3,560,000.00 | Over 5 years | 2.18 | 3,560,000.00 |
| Total | 155,093,668.83 | 95.02 | 27,840,664.33 |
（XLIV） Inventories
1. Inventories classification
| Item | Ending balance | Balance at the end of last year | ||||
| Book balance | Provision for inventory depreciation | Book value | Book balance | Provision for inventory depreciation | Book value | |
| Spare parts | 133,818,765.80 | 55,519,200.72 | 78,299,565.08 | 144,943,485.98 | 59,223,967.83 | 85,719,518.15 |
| Auxiliary materials and low-value consumables, etc. | 417,181.86 | 79,264.71 | 337,917.15 | 344,882.11 | 344,882.11 | |
| Contract performa | 1,549,695.97 | 1,549,695.97 | ||||
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Item | Ending balance | Balance at the end of last year | ||||
| Book balance | Provision for inventory depreciation | Book value | Book balance | Provision for inventory depreciation | Book value | |
| nce cost | ||||||
| Others | 47,196.59 | 47,196.59 | 93,850.90 | 93,850.90 | ||
| Total | 135,832,840.22 | 55,598,465.43 | 80,234,374.79 | 145,382,218.99 | 59,223,967.83 | 86,158,251.16 |
2. Provision for inventory depreciation and provision for impairment of contractperformance costs
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance | ||
| Accrual | Others | Reverse or charge-off | Others | |||
| Spare parts | 59,223,967.83 | 2,902,185.86 | 6,606,952.97 | 55,519,200.72 | ||
| Auxiliary materials and low-value consumables, etc. | 79,264.71 | 79,264.71 | ||||
| Total | 59,223,967.83 | 2,981,450.57 | 6,606,952.97 | 55,598,465.43 | ||
（XLV） Contract assets
| Item | Ending balance | Balance at the end of last year | ||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |
| Project quality guarantee | 95,580.68 | 95,580.68 | 88,000.00 | 88,000.00 | ||
| Total | 95,580.68 | 95,580.68 | 88,000.00 | 88,000.00 | ||
（XLVI） Assets held for sale
| Item | Ending book balance | Provision for impairment | Ending book value | Fair value | Estimated disposal cost | Estimated disposal time |
| Fixed assets | 14,800,817.46 | 14,800,817.46 | - | - | 2025 | |
| Intangible assets | 9,781,967.13 | 9,781,967.13 | - | - | 2025 | |
| Total | 24,582,784.59 | 24,582,784.59 |
Note: the ending book value of assets held for sale are all carried forward from fixed assets andintangible assets due to land acquisition and storage by the Company's subsidiary, ShenzhenNanshan Power Zhongshan Company. Please refer to the notes to other receivables in Note V (V)to the financial statements for details of the relevant land acquisition and storage matters.According to the Relocation Compensation Agreement, the Agreement on the Recovery of State-Owned Land Use Rights and the supplementary agreement signed by Shenzhen Nanshan PowerZhongshan Company and Cuiheng New District Management Committee, Zhongshan City, theland acquisition and storage for Plot B will be completed and handed over to the ManagementCommittee before June 30, 2025. If the Company fails to complete the handover of Plot B beforethe expiration of the agreed handover period, the Parties may extend the handover period, and theextension period shall not exceed 3 months. Based on the irrevocable legal binding nature of theagreements, the smooth progress of the land acquisition and storage process for Plot A, the orderlypreparations for the acquisition and storage of Plot B, the certainty of completing the handoverwithin one year, and the compliance status where pre-reserve asset usage does not affect the
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
transaction with clearly defined rights and obligations, the Company has classified Plot B and itsabove-ground structures as the "assets held for sale" in accordance with applicable accountingstandards, reflecting their actual status and anticipated disposal arrangements.（XLVII） Other current assets
| Item | Ending balance | Balance at the end of last year |
| Large-amount negotiable certificate of deposit and accrued interest | 232,165,987.85 | 225,278,591.79 |
| Land acquisition and storage, production and business suspension, employee compensation and relocation expenses, etc. (Note) | 37,899,306.75 | - |
| Amount of input value-added tax to be deducted | 8,614,307.70 | 996,267.20 |
| Prepaid income tax | 6,583,089.98 | 6,583,089.98 |
| Others | 265,846.94 | 8,019.66 |
| Total | 285,528,539.22 | 232,865,968.63 |
Note: it is collected by the Company's subsidiary, Shenzhen Nanshan Power Zhongshan Company,in relation to the land acquisition and storage matters. For details of the relevant land acquisitionand storage matters, please refer to the explanatory notes under Other Receivables in Note V (V)of the notes to the financial statements.In accordance with the Accounting Treatment for Relocation Compensation Matters stipulated inthe CSRC's Guidance on the Application of Regulatory Rules - Accounting Category No. 3,Shenzhen Nanshan Power Zhongshan Company has classified the expenses incurred forimplementing the land acquisition and storage matters, including demolition losses of buildingsand ancillary facilities, relocation expenses, and employee compensation paid during theproduction suspension period, as other current assets following the land reserve process.（XLVIII） Long-term equity investments
| Investees | Beginning balance | Beginning balance of provision for impairment | Increase and decrease in the current period | |||
| Additional investment | Reduced investment | Investment profit or loss recognized under the equity method | Adjustments to the other comprehensive income | |||
| I. Associates | ||||||
| Huidong Xiefu Port Comprehensive Development Co., Ltd. (hereinafter referred to as "Huidong Xiefu") | 5,167,333.30 | 5,063,937.72 | -103,395.58 | |||
| Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. (hereinafter referred to as "Liaoyuan Environmental Protection") | 84,833,842.74 | 6,563,378.70 | ||||
| Total | 90,001,176.04 | 5,063,937.72 | 6,459,983.12 | |||
Continued:
| Investees | Increase and decrease in the current period | Ending balance | Ending balance of provision for impairment | |||
| Other changes in equity | Declaration of cash dividend or profits | Provision for impairment | Others | |||
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Investees | Increase and decrease in the current period | Ending balance | Ending balance of provision for impairment | |||
| Other changes in equity | Declaration of cash dividend or profits | Provision for impairment | Others | |||
| I. Associates | ||||||
| Huidong Xiefu Port Comprehensive Development Co., Ltd. (hereinafter referred to as "Huidong Xiefu") | ||||||
| Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. (hereinafter referred to as "Liaoyuan Environmental Protection") | 809,700.00 | 90,587,521.44 | ||||
| Total | 809,700.00 | 90,587,521.44 | ||||
（XLIX） Other investments in equity instruments
1. Other investments in equity instruments
| Item | Ending balance | Balance at the end of last year | ||||
| Original book value | Fair value changes | Ending balance | Original book value | Fair value changes | Ending balance | |
| Sunpower Technology (Jiangsu) Co., Ltd. (Note 1) | 140,000,000.00 | 22,782,620.92 | 162,782,620.92 | 140,000,000.00 | 140,000,000.00 | |
| Shenzhen Yuanzhi Ruixin New Generation Information Technology Private Equity Investments Fund Partnership (Limited Partnership) (Note 2) | 100,000,000.00 | -18,599,566.35 | 81,400,433.65 | 100,000,000.00 | 100,000,000.00 | |
| Jiangxi Nuclear Power Co., Ltd. | 60,615,000.00 | 60,615,000.00 | 60,615,000.00 | 60,615,000.00 | ||
| Shenzhen New Energy Storage Industry Equity Fund Partnership (Limited Partnership) | 50,000,000.00 | - | 50,000,000.00 | |||
| Shenzhen Petrochemical Oil Products Bonded Trading Co., Ltd. | 2,500,000.00 | -2,500,000.00 | 2,500,000.00 | -2,500,000.00 | ||
| Total | 353,115,000.00 | 1,683,054.57 | 354,798,054.57 | 303,115,000.00 | -2,500,000.00 | 300,615,000.00 |
Note 1: The changes in fair value recognized in the current period were mainly due to thecontinuous growth of the operating performance of the investee. Since the invested enterprise is anon-public company without active market quotations, and considering the Company holds aminority stake without significant influence, it is impracticable to apply either the incomeapproach or market approach for valuation purposes. Consequently, as neither Level 1 nor Level 2inputs are obtainable, the Company has determined the fair value of this equity investments basedon the investee's net asset value at period-end, with corresponding fair value changes recognizedaccordingly.
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
Note 2: the decrease in the fair value recognized in the current period is mainly due to thetemporary decline in the stock price of the listed company invested by the partnership.
2. Investment in non-trading equity instruments
| Item | Dividend income recognized in the current period | Accumulated gains | Accumulated losses | The amount of other comprehensive income transferred to retained earnings | Reasons for measuring at fair value and whose changes are recognized in other comprehensive income | Reasons for transferring other comprehensive income to retained earnings |
| Sunpower Technology (Jiangsu) Co., Ltd. | 22,782,620.92 | Plan to hold for the long term | ||||
| Shenzhen Yuanzhi Ruixin New Generation Information Technology Private Equity Investments Fund Partnership (Limited Partnership) | 201,969.03 | 18,599,566.35 | Plan to hold for the long term | |||
| Jiangxi Nuclear Power Co., Ltd. | Plan to hold for the long term | |||||
| Shenzhen Petrochemical Oil Products Bonded Trading Co., Ltd. | 2,500,000.00 | Plan to hold for the long term | ||||
| Total | 201,969.03 | 22,782,620.92 | 21,099,566.35 |
（L） Investment properties
| Item | Houses and buildings | Total |
| 1. Original book value | ||
| (1) Balance at the end of last year | 9,708,014.96 | 9,708,014.96 |
| (2) Increased amount in the current period | ||
| - Outsourcing | ||
| (3) Reduced amount in the current period | ||
| —Disposal | ||
| (4) Ending balance | 9,708,014.96 | 9,708,014.96 |
| 2. Accumulated depreciation and accumulated amortization | ||
| (1) Balance at the end of last year | 8,043,448.36 | 8,043,448.36 |
| (2) Increased amount in the current period | 166,556.76 | 166,556.76 |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Item | Houses and buildings | Total |
| - Provision or amortization | 166,556.76 | 166,556.76 |
| (3) Reduced amount in the current period | ||
| —Disposal | ||
| (4) Ending balance | 8,210,005.12 | 8,210,005.12 |
| 3. Provision for impairment | ||
| (1) Balance at the end of last year | ||
| (2) Increased amount in the current period | ||
| -Provision | ||
| (3) Reduced amount in the current period | ||
| —Disposal | ||
| (4) Ending balance | ||
| 4. Book value | ||
| (1) Ending book value | 1,498,009.84 | 1,498,009.84 |
| (2) Book value at the end of last year | 1,664,566.60 | 1,664,566.60 |
（LI） Fixed assets
1. Fixed assets and disposal of fixed assets
| Item | Ending balance | Balance at the end of last year |
| Fixed assets | 377,498,094.30 | 385,390,614.45 |
| Disposal of fixed assets (Note) | 73,705,696.67 | 186,092,119.90 |
| Total | 451,203,790.97 | 571,482,734.35 |
Note: the amount was recognized by the Company's subsidiary, Shenzhen Nanshan PowerZhongshan Company, in relation to land acquisition and storage compensation and post-unitshutdown activities. The decrease in the current period balance was primarily attributable to:
(1) Provision for impairment: among them, the provision for impairment of generating unit andrelated assets was RMB 63.98 million; The estimated disposal loss of non-relocable and scrappedassets related to land acquisition and storage was RMB 19.09 million.
(2) According to the land acquisition and storage agreement and the supplementary agreement, thebuildings and other assets included in the scope of acquisition and storage are about RMB 26.44million, which are transferred from the disposal of fixed assets to the "assets held for sale". SeeNote V (VIII) "Assets held for sale" to the financial statements. According to the agreement,Shenzhen Nanshan Power Zhongshan Company will complete the handover of B plot before June30, 2025.
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
2. Fixed assets
| Item | Houses, buildings and decoration | Machinery equipment | Means of transport | Electronic equipment and other equipment | Total |
| 1. Original book value | |||||
| (1) Balance at the end of last year | 294,887,415.19 | 1,657,023,298.51 | 6,305,570.65 | 44,463,854.92 | 2,002,680,139.27 |
| (2) Increased amount in the current period | 905,836.15 | 13,132,923.82 | - | 164,673.63 | 14,203,433.60 |
| -Purchase | - | 1,717,259.24 | - | 164,673.63 | 1,881,932.87 |
| - Transfer-in from projects under construction | 905,836.15 | 11,415,664.58 | - | - | 12,321,500.73 |
| (3) Reduced amount in the current period | 1,074,210.00 | - | 1,096,968.18 | 3,695,220.44 | 5,866,398.62 |
| -Disposal or scrapping | 1,074,210.00 | - | 1,096,968.18 | 3,695,220.44 | 5,866,398.62 |
| (4) Ending balance | 294,719,041.34 | 1,670,156,222.33 | 5,208,602.47 | 40,933,308.11 | 2,011,017,174.25 |
| 2. Accumulated depreciation | - | - | |||
| (1) Balance at the end of last year | 204,203,072.71 | 1,253,698,686.11 | 4,715,994.15 | 35,616,644.51 | 1,498,234,397.48 |
| (2) Increased amount in the current period | 4,581,037.76 | 14,189,744.01 | 968,301.79 | 1,779,795.09 | 21,518,878.65 |
| -Provision | 4,581,037.76 | 14,189,744.01 | 968,301.79 | 1,779,795.09 | 21,518,878.65 |
| (3) Reduced amount in the current period | 966,789.00 | - | 977,213.07 | 3,241,294.52 | 5,185,296.59 |
| -Disposal or scrapping | 966,789.00 | - | 977,213.07 | 3,241,294.52 | 5,185,296.59 |
| (4) Ending balance | 207,817,321.47 | 1,267,888,430.12 | 4,707,082.87 | 34,155,145.08 | 1,514,567,979.54 |
| 3. Provision for impairment | |||||
| (1) Balance at the end of last year | 17,852,047.84 | 100,972,179.24 | 53,176.48 | 177,723.78 | 119,055,127.34 |
| (2) Increased amount in the current period | - | - | |||
| -Provision | - | - | - | ||
| (3) Reduced amount in the current period | - | - | - | 104,026.93 | 104,026.93 |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Item | Houses, buildings and decoration | Machinery equipment | Means of transport | Electronic equipment and other equipment | Total |
| -Disposal or scrapping | 104,026.93 | 104,026.93 | |||
| (4) Ending balance | 17,852,047.84 | 100,972,179.24 | 53,176.48 | 73,696.85 | 118,951,100.41 |
| 4. Book value | |||||
| (1) Ending book value | 69,049,672.03 | 301,295,612.97 | 448,343.12 | 6,704,466.18 | 377,498,094.30 |
| (2) Book value at the end of last year | 72,832,294.64 | 302,352,433.16 | 1,536,400.02 | 8,669,486.63 | 385,390,614.45 |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
3. Fixed assets without the certificate of title
| Item | Book value | Reasons for failure to acquire the certificate of title |
| Oil depot complex | 443,246.19 | Formalities not completed |
| Chemical water treatment workshop | 232,960.00 | Formalities not completed |
| Cooling tower | 673,259.25 | Formalities not completed |
| Cafeteria of complex building | 189,744.15 | Formalities not completed |
| Mail room at the main entrance | 47,264.13 | Formalities not completed |
| Total | 1,586,473.72 |
4. Disposal of fixed assets
| Item | Ending balance | Balance at the end of last year |
| Buildings and constructions | - | 24,723,346.08 |
| Machinery equipment | 72,098,979.01 | 160,560,314.62 |
| Means of transport | 50,000.00 | 16,103.45 |
| Electronic equipment and other equipment | 189,564.16 | |
| Others | 1,367,153.50 | 792,355.75 |
| Total | 73,705,696.67 | 186,092,119.90 |
Note: for details, please refer to the Note V (XIII) 1. "Fixed assets and disposal of fixed assets" tothe financial statements.（LII） Construction in progress
1. Construction in progress and project materials
| Item | Ending balance | Balance at the end of last year |
| Construction in progress | 6,983,713.85 | 3,448,855.10 |
| Project materials | ||
| Total | 6,983,713.85 | 3,448,855.10 |
2. Construction in progress
| Item | Ending balance | Balance at the end of last year | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Oil-to-gas project of Nanshan Power Plant | 9,441,286.39 | 9,441,286.39 | - | 9,441,286.39 | 9,441,286.39 | |
| Technical Renovation Project of Nanshan Power Plant | 4,238,664.96 | 1,605,000.00 | 2,633,664.96 | 4,080,877.62 | 1,605,000.00 | 2,475,877.62 |
| Zhongshan Independent Energy Storage Project | 4,259,294.18 | 4,259,294.18 | ||||
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Item | Ending balance | Balance at the end of last year | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Others | 90,754.71 | 90,754.71 | 972,977.48 | 972,977.48 | ||
| Total | 18,030,000.24 | 11,046,286.39 | 6,983,713.85 | 14,495,141.49 | 11,046,286.39 | 3,448,855.10 |
3. Changes in significant construction in progress in the current period
| Project name | Beginning balance | Increased amount in the current period | Transferred for the current period Fixed assets | Other decreases in the current period | Ending balance |
| Zhongshan Independent Energy Storage Project | 4,259,294.18 | 4,259,294.18 | |||
| MTC industrial and commercial energy storage project | 111,520.15 | 9,213,594.06 | 9,325,114.21 |
Continued:
| Project name | Budget amount (RMB 10,000) | Proportion of project investment in budget (%) | Project progress (%) | Accumulated amount of interest capitalization | Including: amount of interest capitalization in the current period | Interest capitalization rate in the current period (%) | Sources of funds |
| Zhongshan Independent Energy Storage Project | 30,715.24 | 17.09 | 17.09 | Self-financed | |||
| MTC industrial and commercial energy storage project | 939.12 | 99.30 | 99.30 | Self-financed |
（LIII） Right-of-use assets
1. Right-of-use assets
| Item | Buildings | Total |
| I. Original book value | ||
| 1. Beginning balance | 16,322,014.37 | 16,322,014.37 |
| 2. Increased amount in the current period | 8,696,499.48 | 8,696,499.48 |
| 3. Decreased amount in the current period | 16,322,014.37 | 16,322,014.37 |
| 4. Ending balance | 8,696,499.48 | 8,696,499.48 |
| II. Accumulated depreciation | ||
| 1. Beginning balance | 14,055,067.95 | 14,055,067.95 |
| 2. Increased amount in the current period | 4,803,425.47 | 4,803,425.47 |
| (1) Provision | 4,803,425.47 | 4,803,425.47 |
| 3. Decreased amount in the current period | 16,322,014.37 | 16,322,014.37 |
| 4. Ending balance | 2,536,479.05 | 2,536,479.05 |
| III. Provision for impairment |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Item | Buildings | Total |
| IV. Book value | ||
| 1. Ending book value | 6,160,020.43 | 6,160,020.43 |
| 2. Beginning book value | 2,266,946.42 | 2,266,946.42 |
Note: the right-of-use assets refer to the Company's operating leases of 16F/17F, Hantang BuildingProperty for office use.（LIV） Intangible assets
| Item | Land use right | Patent | Software | Total |
| 1. Original book value | ||||
| (1) Balance at the end of last year | 60,813,994.76 | 138,625.07 | 3,858,558.72 | 64,811,178.55 |
| (2) Increased amount in the current period | - | - | 1,384,584.86 | 1,384,584.86 |
| -Purchase | 1,384,584.86 | 1,384,584.86 | ||
| (3) Reduced amount in the current period | 30,013,383.62 | - | 55,813.56 | 30,069,197.18 |
| —Disposal (Note) | 30,013,383.62 | 55,813.56 | 30,069,197.18 | |
| (4) Ending balance | 30,800,611.14 | 138,625.07 | 5,187,330.02 | 36,126,566.23 |
| 2. Accumulated amortization | ||||
| (1) Balance at the end of last year | 41,785,841.59 | 49,165.10 | 3,690,542.83 | 45,525,549.52 |
| (2) Increased amount in the current period | 6,591.12 | 17,347.44 | 320,565.45 | 344,504.01 |
| -Provision | 6,591.12 | 17,347.44 | 320,565.45 | 344,504.01 |
| (3) Reduced amount in the current period | 11,037,405.55 | - | 55,813.56 | 11,093,219.11 |
| —Disposal | 11,037,405.55 | 55,813.56 | 11,093,219.11 | |
| (4) Ending balance | 30,755,027.16 | 66,512.54 | 3,955,294.72 | 34,776,834.42 |
| 3. Provision for impairment | ||||
| (1) Balance at the end of last year | ||||
| (2) Increased amount in the current period | ||||
| -Provision | ||||
| (3) Reduced amount in the current period | ||||
| —Disposal | ||||
| (4) Ending balance | ||||
| 4. Book value | ||||
| (1) Ending book value | 45,583.98 | 72,112.53 | 1,232,035.30 | 1,349,731.81 |
| (2) Book value at the end of last year | 19,028,153.17 | 89,459.97 | 168,015.89 | 19,285,629.03 |
Note: the main reason is that, due to land acquisition and storage, the Company's subsidiary,Shenzhen Nanshan Power Zhongshan Company, transferred the land use right included in thescope of acquisition and storage from the intangible assets to the "assets held for sale" accordingto the land acquisition and storage agreement and the supplementary agreement, as detailed in theNote V (VIII) "Assets held for sale" to the financial statements.（LV）Long-term deferred expenses
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Item | Balance at the end of last year | Increased amount in the current period | Amortization amount in the current period | Other reductions | Ending balance |
| Major repair expenses | 3,170,034.87 | 4,304,675.85 | 1,963,954.16 | 5,510,756.56 | |
| Renovation costs | 721,798.06 | 429,692.85 | 292,105.21 | ||
| Total | 3,891,832.93 | 4,304,675.85 | 2,393,647.01 | 5,802,861.77 |
（LVI） Deferred tax assets and deferred tax liabilities
1. Deferred tax assets not offset
| Item | Ending balance | Balance at the end of last year | ||
| Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | |
| Fair value changes of other investments in equity instruments | 2,500,000.00 | 625,000.00 | 2,500,000.00 | 625,000.00 |
| Provision for bad debts | 3,649,109.93 | 547,366.49 | ||
| Total | 2,500,000.00 | 625,000.00 | 6,149,109.93 | 1,172,366.49 |
2. Details of unrecognized deferred tax assets
| Item | Ending balance | Balance at the end of last year |
| Deductible temporary differences | 1,065,725,874.19 | 547,773,352.17 |
| Deductible losses | 369,872,214.75 | 542,749,124.79 |
| Total | 1,435,598,088.94 | 1,090,522,476.96 |
3. The deductible losses for which deferred tax assets have not been recognized will expirein the following years
| Year | Ending balance | Balance at the end of last year | Remark |
| Year 2024 | 5,350,767.06 | ||
| 2025 | 3,443,492.77 | ||
| 2026 | 59,517,953.84 | 174,438,579.72 | |
| 2027 | 88,187,897.68 | 187,111,062.55 | |
| 2028 | 65,849,419.76 | 62,579,931.14 | |
| 2029 | 63,539,789.28 | ||
| 2030 | 1,402,852.84 | 26,803,142.56 | |
| 2031 | 10,426,619.64 | 15,911,576.84 | |
| 2032 | 50,074,067.52 | 50,074,067.52 | |
| 2033 | 15,746,106.25 | 17,036,504.63 | |
| 2034 | 15,127,507.94 | ||
| Total | 369,872,214.75 | 542,749,124.79 |
（LVII） Other non-current assets
| Item | Ending balance | Balance at the end of last year | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Advance | 4,739,340.56 | 4,739,340.56 | ||||
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Item | Ending balance | Balance at the end of last year | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| payment for Zhongshan independent energy storage project | ||||||
| Relevant expenses for functional substitution of Nanshan Power Plant and land acquisition and storage payment of Zhongshan Company (Note) | 857,135.84 | 857,135.84 | 36,157,735.24 | 36,157,735.24 | ||
| Total | 5,596,476.40 | 5,596,476.40 | 36,157,735.24 | 36,157,735.24 | ||
Note: The main reason for the decrease in the balance of the current period is that, according to thelatest progress of land acquisition and storage of the Company's subsidiary, Shenzhen NanshanPower Zhongshan Company, losses from demolition of houses and other appurtenances, relocationexpenses, employee compensation paid during the suspension of production and business andother expenses incurred in the land acquisition and storage, have been reclassified to other currentassets. For details, please refer to the Note V (IX) "Other current assets" to the FinancialStatements .（LVIII） Assets with restricted ownership or use rights
| Item | Ending balance | Balance at the end of last year | ||||||
| Book balance | Book value | Restricted type | Restrictions | Book balance | Book value | Restricted type | Restrictions | |
| Monetary funds | 7,912,100.00 | 7,912,100.00 | Guarantee | Freeze | 5,453,862.93 | 5,453,862.93 | Guarantee | Freeze |
| Total | 7,912,100.00 | 7,912,100.00 | 5,453,862.93 | 5,453,862.93 | ||||
（LIX） Short-term borrowings
| Item | Ending balance | Balance at the end of last year |
| Credit loan | 106,558,036.22 | 270,933,506.37 |
| Pledged loan (note) | 162,000,000.00 | 70,000,000.00 |
| Accrued interest on short-term borrowings | 56,972.97 | 304,380.35 |
| Total | 268,615,009.19 | 341,237,886.72 |
Note: The Company pledged its own patent for invention to China Merchants Bank Co., Ltd.Shenzhen Branch for a loan of RMB 30 million, pledged a letter of credit to Shanghai PudongDevelopment Bank Co., Ltd. Shenzhen Branch for a loan of RMB 87 million, and pledged a letterof credit to Industrial Bank Co., Ltd. Shenzhen Branch for a loan of RMB 45 million.（LX）Accounts payable
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
1. Accounts payable
| Item | Ending balance | Balance at the end of last year |
| Payments for goods, labor services and services | 13,560,180.89 | 3,445,513.63 |
| Electricity bill | 461,976.72 | 896,652.87 |
| Total | 14,022,157.61 | 4,342,166.50 |
2. Top five accounts payable
| Entity name | Book balance | Proportion to the accounts payable balance (%) |
| Shenzhen Nangang Power Engineering Co., Ltd. | 4,851,983.00 | 34.60 |
| Zike Co., Ltd. | 1,872,500.00 | 13.35 |
| Yotai Digital Energy Technology (Shenzhen) Co., Ltd. | 1,187,768.30 | 8.47 |
| Shenzhen Zhongshenli Development Technology Co., Ltd. | 825,338.42 | 5.89 |
| Shenzhen Yutuo Intelligent Co., Ltd | 815,750.00 | 5.82 |
| Total | 9,553,339.72 | 68.13 |
（LXI） Contract liabilities
| Item | Ending balance | Balance at the end of last year |
| Advance payment for integrated energy service | 50,000.00 | - |
| Total | 50,000.00 | - |
（LXII） Employee compensation payable
1. Employee compensation payable
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| Short-term compensation | 14,000,126.57 | 100,689,582.83 | 98,636,829.93 | 16,052,879.47 |
| Post-employment benefits- defined contribution plans | - | 15,980,622.91 | 15,980,622.91 | - |
| Dismissal benefits (note) | 32,238,856.00 | - | 32,238,856.00 | - |
| Total | 46,238,982.57 | 116,670,205.74 | 146,856,308.84 | 16,052,879.47 |
Note: For the employee compensation related to land acquisition and storage of ZhongshanCompany, please refer to the Note V (V) "Other receivables" to the financial statements for detailsof the relevant land acquisition and storage matters.
2. Short-term compensation
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| (1) Salaries, bonuses, allowances and subsidies | 13,904,838.47 | 72,782,435.40 | 71,507,091.53 | 15,180,182.34 |
| (2) Employee welfare fees | - | 12,359,112.01 | 11,627,411.90 | 731,700.11 |
| (3) Social insurance premiums | - | 4,565,286.80 | 4,565,286.80 | - |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| Including: medical insurance premiums | - | 3,687,064.40 | 3,687,064.40 | - |
| Work injury insurance premium | - | 508,366.08 | 508,366.08 | - |
| Maternity insurance premium | - | 369,856.32 | 369,856.32 | - |
| (4) Housing provident fund | - | 9,300,532.44 | 9,300,532.44 | - |
| (5) Trade union funds and employee education expenses | 95,288.10 | 1,682,216.18 | 1,636,507.26 | 140,997.02 |
| Total | 14,000,126.57 | 100,689,582.83 | 98,636,829.93 | 16,052,879.47 |
3. Defined contribution plans list
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| Basic endowment insurance | - | 10,784,065.94 | 10,784,065.94 | - |
| Unemployment insurance premiums | - | 625,546.07 | 625,546.07 | - |
| Enterprise annuity payment | - | 4,571,010.90 | 4,571,010.90 | - |
| Total | - | 15,980,622.91 | 15,980,622.91 | - |
（LXIII） Taxes payable
| Tax items | Ending balance | Balance at the end of last year |
| Corporate income tax | 9,140,402.85 | |
| Value-added tax | 4,261,775.21 | 2,282,514.44 |
| Personal income tax | 712,556.99 | 620,879.50 |
| Stamp duty | 172,648.01 | 160,105.10 |
| Urban maintenance and construction tax | 32,043.68 | 15,063.61 |
| Education surcharge | 13,687.09 | 6,404.48 |
| Local education surcharge | 9,201.24 | 4,346.16 |
| Others | 6,592.97 | 17.18 |
| Total | 14,348,908.04 | 3,089,330.47 |
（LXIV） Other payables
| Item | Ending balance | Balance at the end of last year |
| Interest payable | ||
| Dividends payable | ||
| Other payables | 15,685,234.29 | 13,973,447.42 |
| Total | 15,685,234.29 | 13,973,447.42 |
1. Other payables
(1) Presented according to nature of payment
| Item | Ending balance | Balance at the end of last year |
| Labor and service fees (note) | 14,687,088.11 | 1,522,715.43 |
| Guarantee | 750,651.39 | 8,993,154.68 |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Item | Ending balance | Balance at the end of last year |
| Others | 247,494.79 | 3,457,577.31 |
| Total | 15,685,234.29 | 13,973,447.42 |
Note: The main reason for the increase in the balance of the current period is that, its subsidiary,Shenzhen Nanshan Power Zhongshan Company, made provision for the costs of dismantling anddisposing the oil tank and oil pipeline in plot A according to the agreement signed with ZhongshanXiwan Construction Investment Co., Ltd. for land acquisition and storage matters.
(2) Top five other payables
| Entity name | Book balance | Proportion to the other accounts payable balance (%) |
| Zhongshan Xiwan Construction Investment Co., Ltd. | 11,754,465.14 | 74.94 |
| Lixinzhonglian CPAS (Special General Partnership) | 470,000.00 | 3.00 |
| Zhanjiang Hongda Petrochemical Co., Ltd. | 336,413.68 | 2.14 |
| Shenzhen Shennong Kitchen Co., Ltd | 301,800.00 | 1.92 |
| Cummins Power Equipment (Dongguan) Co., Ltd. | 206,000.00 | 1.31 |
| Total | 13,068,678.82 | 83.31 |
（LXV） Non-current liabilities due within one year
| Item | Ending balance | Balance at the end of last year |
| Lease liabilities due within one year | 4,466,835.32 | 2,527,155.52 |
| Long-term borrowings due within one year | 1,399,170.93 | |
| Total | 4,466,835.32 | 3,926,326.45 |
（LXVI） Other current liabilities
| Item | Ending balance | Balance at the end of last year |
| Progress payment for land acquisition and storage compensation (Note) | 107,922,581.00 | |
| Interests of other partners in the partnership | 403.82 | |
| Total | 107,922,984.82 |
Note: For the compensation of Plot B received by the Company's subsidiary, Shenzhen NanshanPower Zhongshan Company, due to land acquisition and storage matters, please refer to the NoteV (V) "Other receivables" to the financial statements for details of the relevant land acquisitionand storage matters.The total compensation price of Plot B was RMB 359,741,936. As of the end of 2024, the progresspayment of Plot B compensation of RMB 107,922,581 has been received. As of the end of thereporting period, the transfer of Plot B has not been completed, and the compensation received hasbeen reclassified to other current liabilities.
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
（LXVII） Long-term borrowings
| Item | Ending balance | Balance at the end of last year |
| Credit loan | - | 58,829,426.30 |
| Total | - | 58,829,426.30 |
（LXVIII） Lease liabilities
1. Lease liabilities details
| Item | Ending balance | Beginning balance |
| Lease liabilities | 2,125,910.18 | |
| Total | 2,125,910.18 |
2. Lease liabilities maturity analysis
| Item | Ending balance | Beginning balance |
| 1-2 years | 2,125,910.18 | |
| Total | 2,125,910.18 |
（LXIX） Estimated liabilities
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance | Causes |
| Others | 15,000,000.00 | - | 15,000,000.00 | - | |
| Total | 15,000,000.00 | - | 15,000,000.00 | - |
Note: On November 29, 2013, Xiefu Company and Jiahua Construction Products (Shenzhen) Co.,Ltd. ("Jiahua Construction") signed a supplementary agreement to the equity transfer agreementwith respect to the historical issues between Xiefu Company, Huidong Xiefu and HuidongRenshan Town Government and its subordinate Renshan Group on the ownership and division ofthe rights and interests of Yapojiao Wharf. In order to solve the historical issues, Shenzhen Xiefudeposited RMB 12,500,000.00 into the co-managed account for guarantee. In addition, Xiefupledged 20% of the equity of Huidong Xiefu to Jiahua Construction, with a pledge period of twoyears and the amount of claims guaranteed by pledge not exceeding RMB 15,000,000.00. TheCompany expected a loss of RMB 27,500,000.00 in relation to this matter. The balance at the endof 2019 was RMB 26,646,056.28.On November 12, 2020, Huidong Xiefu and other parties concerned reached a preliminaryreconciliation agreement on the land dispute in the estimated liabilities. Xiefu Company reversedthe estimated liabilities of RMB 6,584,816.78 accordingly. In 2020, Xiefu Company bore thelawyer's fees and other expenses of RMB 137,731.22 for the matter according to the agreedproportion, and the estimated liabilities were reduced by RMB 6,722,548.00 in 2020. The balanceof RMB 19,923,508.28 is the repayment obligation that is likely to occur before the above mattersare completed.On November 12, 2020, Huizhou Commercial Construction and Development Company andHuidong Server Harbor Comprehensive Development Company signed the Agreement on Transferof Claims and the record of enforcement and compromise of the People's Court of HuidongCounty, partially resolving the historical issues concerning the ownership and division of theequity of Yapojiao Wharf. On January 20, 2021, Xiefu Company received the refund of RMB5,000,000.00 from the co-managed account, and it reversed the estimated liabilities RMB4,573,508.28 accordingly. In 2021, Shenzhen Server bore the legal and other expenses of RMB350,000 in accordance with the agreed ratio, with a total decrease of RMB 4,923,508.28 inestimated liabilities in 2021. The balance of RMB 15,000,000.00 is the repayment obligation that
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
is likely to occur before the above matters are completed.On September 18, 2024, Xiefu Company had completed the cancellation of registration of equitypledge, and the deregistration number was (YH) GQZXZ (2024) No. 44130012400157271. OnOctober 25, 2024, Xiefu Company and Huizhou Gangtou Group signed the Property TransactionContract on the transfer of 40% equity of Huizhou Xiefu. On November 11, 2024, Xiefu Companyhad received the money for transferring 40% equity of Huidong Xiefu from Huizhou GangtouGroup through the Shenzhen United Property and Equity Exchange, and completed the industrialand commercial registration procedures for the change of shareholders. Xiefu Company will nolonger bear the repayment obligation for the above matters and will reverse the recognizedestimated liabilities.（LXX） Deferred income
1. Classification of deferred income
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance | Causes |
| Government subsidies | 67,869,348.07 | - | 6,346,472.10 | 61,522,875.97 | See Table 2 for details |
| Total | 67,869,348.07 | - | 6,346,472.10 | 61,522,875.97 |
2. Deferred income related to government subsidies
| Liabilities | Balance at the end of last year | New subsidy amount in the current period | Amount recognized in profit or loss in the current period | Other changes | Ending balance | Asset related/income related |
| Shenzhen air quality improvement subsidy | 44,598,351.64 | - | 4,731,818.23 | - | 39,866,533.41 | Asset related |
| Government subsidies for low-nitrogen equipment renovation | 18,376,607.94 | 458,768.16 | 17,917,839.78 | Asset related | ||
| Motor energy efficiency improvement subsidy scheme | 263,520.00 | 34,560.00 | - | 228,960.00 | Asset related | |
| Funds for technological transformation and investment projects in 2021-2022 | 917,388.90 | 70,666.66 | 846,722.24 | Asset related | ||
| Industrial development special grants | 1,125,000.00 | 375,000.00 | 750,000.00 | Asset related | ||
| Supporting funds for industrial energy conservation and comprehensive utilization projects in the Green Development and Industrial "Carbon Peak" Support Program | 1,642,500.00 | 547,500.00 | 1,095,000.00 | Asset related |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Liabilities | Balance at the end of last year | New subsidy amount in the current period | Amount recognized in profit or loss in the current period | Other changes | Ending balance | Asset related/income related |
| Circular economy support fund for sludge drying project | 945,979.59 | 128,159.05 | 817,820.54 | Asset related | ||
| Total | 67,869,348.07 | 6,346,472.10 | 61,522,875.97 |
（LXXI） Other non-current liabilities
| Item | Ending balance | Balance at the end of last year |
| Progress payment for land acquisition and storage compensation (Note) | 104,000,000.00 | |
| Interests of other partners in the partnership | 45,112.54 | |
| Total | 104,045,112.54 |
Note: the main reason for the decrease in the balance in the current period is that according to thelatest progress of land acquisition and storage of the Company's subsidiary Shenzhen NanshanPower Zhongshan Company, the land compensation price received for Plot B has been reclassifiedto other current liabilities. For details, please refer to the Note V (XXVIII) "Other currentliabilities" to the financial statements.（LXXII） Equity
| Item | Balance at the end of last year | Increase (+) and decrease (-) in the current period | Ending balance | ||||
| Issuance of new shares | Bonus shares | Conversion of provident fund into shares | Others | Subtotal | |||
| Total shares | 602,762,596.00 | 602,762,596.00 | |||||
（LXXIII） Capital reserve
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| Capital premium (equity premium) | 233,035,439.62 | 233,035,439.62 | ||
| Other capital reserve | 129,735,482.48 | 129,735,482.48 | ||
| Total | 362,770,922.10 | 362,770,922.10 |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
（LXXIV） Other comprehensive income
| Item | Balance at the end of last year | The current period amount | Ending balance | |||||
| Amount before income tax for the current period | Less: recognized in other comprehensive income in the previous period and transferred to current profit or loss | Less: recognized in other comprehensive income in the previous period and transferred to retained earnings in the current period | Less: income tax expenses | Attributable to parent company after tax | Attributable to minority shareholders after tax | |||
| 1. Other comprehensive income that cannot be reclassified into profit or loss | ||||||||
| Including: remeasure changes in benefit plans | ||||||||
| Other comprehensive income that cannot be transferred to profit or loss under the equity method | ||||||||
| Fair value changes of other investments in equity instruments | -2,500,000.00 | 4,183,054.57 | - | - | 4,183,054.57 | - | 1,683,054.57 | |
| Total other comprehensive income | -2,500,000.00 | 4,183,054.57 | - | - | 4,183,054.57 | - | 1,683,054.57 | |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
（LXXV） Special reserve
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| Safety production costs | 5,767,486.06 | 5,767,486.06 | ||
| Total | 5,767,486.06 | 5,767,486.06 |
Note: the Company's power production business shall be withdrawn in accordance with the AdministrativeMeasures for the Withdrawal and Use of Enterprise Work Safety Expenses (CZ [2022] No. 136) (issued onDecember 12, 2022) and the work safety expenses shall be included in the current profit or loss, and transferred tothe special reserves at the same time.（LXXVI） Surplus reserve
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| Statutory surplus reserve | 310,158,957.87 | 310,158,957.87 | ||
| Discretionary surplus reserve | 22,749,439.73 | 22,749,439.73 | ||
| Total | 332,908,397.60 | 332,908,397.60 |
（LXXVII） Undistributed profits
| Item | The current period amount | Amount in previous period |
| Undistributed profits at the end of last year before adjustments | 163,346,776.24 | 159,187,979.14 |
| Adjustments to the total amount of the undistributed profits at the beginning of the year (increase +, decrease -) | ||
| Undistributed profits at the beginning of the year after adjustments | 163,346,776.24 | 159,187,979.14 |
| Plus: net profit attributable to owners of parent company for the current period | 21,908,828.57 | 4,158,797.10 |
| Less: withdrawal of statutory surplus reserve | ||
| Dividends payable on ordinary shares | ||
| Ending undistributed profits | 185,255,604.81 | 163,346,776.24 |
（LXXVIII） Operating revenue and operating costs
1. Operating revenue and operating costs
| Item | The current period amount | Amount in previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 437,329,918.38 | 410,482,141.18 | 588,370,569.20 | 581,180,842.37 |
| Other business | 5,642,037.47 | 4,964,591.21 | 1,409,621.51 | 261,701.61 |
| Total | 442,971,955.85 | 415,446,732.39 | 589,780,190.71 | 581,442,543.98 |
2. Break down by product or service type
| Item | The current period amount | Amount in previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Power production and sale | 419,930,286.71 | 405,194,367.48 | 562,688,722.91 | 572,117,240.68 |
| Integrated energy service | 39,382,694.07 | 28,530,461.10 | 42,299,536.01 | 25,075,252.67 |
| Others | 5,768,308.02 | 1,223,850.40 | 1,468,149.52 | 261,701.61 |
| Consolidation offset | -22,109,332.95 | -19,501,946.59 | -16,676,217.73 | -16,011,650.98 |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Item | The current period amount | Amount in previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Total | 442,971,955.85 | 415,446,732.39 | 589,780,190.71 | 581,442,543.98 |
3. By region
| Item | The current period amount | Amount in previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Domestic | 442,971,955.85 | 415,446,732.39 | 589,780,190.71 | 581,442,543.98 |
| Total | 442,971,955.85 | 415,446,732.39 | 589,780,190.71 | 581,442,543.98 |
4. Revenue arising from contracts
| Item | The current period amount | Amount in previous period |
| Classification by contract performance obligations | ||
| Including: revenue recognized at a certain time point | 425,572,324.18 | 564,098,343.42 |
| Revenue recognized within a certain period of time | 17,399,631.67 | 25,681,847.29 |
| Total | 442,971,955.85 | 589,780,190.71 |
（LXXIX） Taxes and surcharges
| Item | The current period amount | Amount in previous period |
| Property tax | 2,329,842.01 | 2,241,783.87 |
| Land use tax | 937,331.78 | 887,196.02 |
| Stamp duty | 499,797.33 | 542,870.30 |
| Urban maintenance and construction tax | 468,703.79 | 653,636.44 |
| Education surcharge | 200,873.02 | 277,505.45 |
| Local education surcharge | 133,915.34 | 185,003.66 |
| Environmental protection tax | 49,598.31 | 8,230.82 |
| Vehicle and vessel tax | 1,800.00 | 3,390.00 |
| Total | 4,621,861.58 | 4,799,616.56 |
（LXXX） Selling and distribution expenses
| Item | The current period amount | Amount in previous period |
| Employee compensation | 2,529,240.42 | 1,884,492.17 |
| Travel expenses | 57,932.89 | 363,759.10 |
| Office expenses | 2,189.62 | 250,648.83 |
| Entertainment expenses | 73,589.20 | 160,201.41 |
| Agency fee | 478,121.30 | 141,603.76 |
| Others | 14,531.15 | 31,043.38 |
| Total | 3,155,604.58 | 2,831,748.65 |
（LXXXI） G&A expenses
| Item | The current period amount | Amount in previous period |
| Employee compensation | 65,990,120.42 | 29,928,766.04 |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Item | The current period amount | Amount in previous period |
| Depreciation cost | 11,649,901.01 | 15,161,467.11 |
| Agency fee | 1,992,538.79 | 2,506,646.25 |
| Entertainment expenses | 1,602,591.82 | 1,500,934.74 |
| Water, electricity and property management fees | 2,392,530.81 | 1,094,236.61 |
| Repair costs | 1,289,469.91 | 815,123.18 |
| Communication and information fees | 902,311.16 | 744,919.13 |
| Travel expenses | 824,632.99 | 702,232.98 |
| Vehicle usage fee | 756,417.89 | 607,305.89 |
| Office expenses | 709,686.09 | 572,337.65 |
| Fees of the Board of Directors | 406,182.95 | 472,695.27 |
| Greening and cleaning fees | 728,772.95 | 326,335.65 |
| Rental fees | 581,042.03 | 291,561.03 |
| Stock related fee | 256,854.79 | 114,895.51 |
| Amortization of intangible assets | 332,318.80 | 65,558.04 |
| Others | 5,091,726.62 | 3,425,581.79 |
| Total | 95,507,099.03 | 58,330,596.87 |
（LXXXII） R&D expenses
| Item | The current period amount | Amount in previous period |
| Employee compensation | 14,757,285.96 | 24,140,938.27 |
| Depreciation cost | 6,091,463.31 | 1,705,020.54 |
| Others | 493,029.00 | 993,953.93 |
| Total | 21,341,778.27 | 26,839,912.74 |
（LXXXIII） Financial expenses
| Item | The current period amount | Amount in previous period |
| Interest costs | 11,829,545.09 | 18,665,115.07 |
| Less: interest income | 5,185,764.60 | 7,358,119.93 |
| Foreign exchange losses | -91,424.96 | -72,164.01 |
| Bank handling charges | 263,409.57 | 344,806.25 |
| Total | 6,815,765.10 | 11,579,637.38 |
（LXXXIV） Other benefits
| Item | The current period amount | Amount in previous period |
| Government subsidies | 6,832,542.00 | 44,431,212.00 |
| Personal tax handling charges refund | 34,481.46 | 74,677.51 |
| Total | 6,867,023.46 | 44,505,889.51 |
Government subsidies included in other income
| Subsidy project | The current period amount | Amount in previous period | Asset related/income related |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Subsidy project | The current period amount | Amount in previous period | Asset related/income related |
| Shenzhen air quality improvement subsidy | 4,731,818.23 | 4,731,818.16 | Asset related |
| Supporting funds for industrial energy conservation and comprehensive utilization projects in the Green Development and Industrial "Carbon Peak" Support Program | 547,500.00 | 547,500.00 | Asset related |
| Low nitrogen project renovation grants | 458,768.16 | 5,239,056.75 | Asset related |
| Industrial development special grants | 375,000.00 | 375,000.00 | Asset related |
| Special project for promoting high-quality industrial development | 241,800.00 | Income related | |
| Subsidies for promoting the continuous and smooth operation of industries above designated size | 139,600.00 | Income related | |
| Supporting funds for sludge drying project | 128,159.05 | 6,625,535.60 | Asset related |
| Stable employment subsidy | 83,669.90 | 140,838.47 | Income related |
| Financing plan for technological transformation investment projects | 70,666.66 | 70,666.68 | Asset related |
| Motor energy efficiency improvement subsidy scheme | 34,560.00 | 34,560.00 | Asset related |
| Subsidies for supporting industrial enterprises to increase production and efficiency | 20,000.00 | Income related | |
| Lump-sum post expansion subsidy | 1,000.00 | Income related | |
| Special funds for energy conservation and emission reduction | 342,111.34 | Asset related | |
| Green and low-carbon development project grants | 450,000.00 | Income related | |
| Thermal power plant relief grants | 25,400,000.00 | Income related | |
| Special funds for industrial development | 27,625.00 | Income related | |
| National high-tech enterprise doubling program | 300,000.00 | Income related | |
| Pilot demonstration funding for industrial "carbon peak" work | 100,000.00 | Income related | |
| Science and technology innovation voucher | 46,500.00 | Income related | |
| Total | 6,832,542.00 | 44,431,212.00 |
（LXXXV） Investment income
| Item | The current period amount | Amount in previous period |
| Investment income from disposal of long-term equity investments (Note) | 66,718,753.76 | |
| Investment income from financial assets held for trading during the holding period | 11,286,239.10 | 18,538,064.54 |
| Income from long-term equity investments accounted for equity method under the equity method | 6,326,077.76 | 7,719,627.80 |
| Dividend income received from investments in equity instruments during the holding period | 201,969.03 | 8,740,206.13 |
| Bill discount expenses | -44,739.75 | |
| Total | 84,488,299.90 | 34,997,898.47 |
Note: in order to actively promote the revitalization of assets in stock, during the reporting period, theCompany's subsidiary Xiefu Company publicly listed and transferred its 40% equity in Huidong Xiefu throughthe Shenzhen United Property and Equity Exchange, signed the Property Transaction Contract on October 25,
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
2024, and received all the equity transfer consideration on November 11, 2024, the industrial and commercialregistration change procedure was completed for the relevant equity on November 29, 2024, meeting theconditions for derecognition, and finally confirming the investment income of the equity transfer.（LXXXVI） Losses from credit impairment
| Item | The current period amount | Amount in previous period |
| Loss from bad debts of accounts receivable (Note) | -10,381,410.65 | 85,000.00 |
| Loss from bad debts of other receivables | -1,000,000.00 | 1,105,348.40 |
| Total | -11,381,410.65 | 1,190,348.40 |
Note: For details of the provision for losses from credit impairment of accounts receivable, please refer to NoteV (III) "accounts receivable" 3. "Provision for bad debts accrued, reversed or recovered in the current period" tothe financial statements.（LXXXVII） Asset impairment loss
| Item | The current period amount | Amount in previous period |
| Loss from impairment of fixed assets (Note) | -63,982,886.86 | |
| Impairment losses of inventories, contract performance costs, etc. | -2,406,652.82 | -162,985.78 |
| Total | -66,389,539.68 | -162,985.78 |
Note: the losses from impairment of fixed assets are provided for the power generation unit equipment andrelated assets of Shenzhen Nanshan Power Zhongshan Company. The above assets were listed for sale on theShenzhen United Property and Equity Exchange on December 25, 2024 for the generating unit equipment andrelated assets. On February 26, 2025, the listed assets were successfully delisted, and on March 4, 2025, aPhysical Asset Transaction Contract was signed with the transferee, Fujian Hengjing Investment Co., Ltd. OnMarch 30, 2025, the delivery procedures of assets will be completed. As of the end of the reporting period,based on the principle of prudence, Shenzhen Nanshan Power Zhongshan Company has made provision forimpairment for the relevant assets based on the recoverable amount of the public listing transaction amountminus the disposal expenses. The specific calculation is as follows (unit: RMB 10,000):
| Item | Amount | Remark |
| Book value before provision for impairment | 12,374.58 | |
| Recoverable amount | 5,976.29 | Based on the listed transaction price in February 2025 and considering the relevant disposal costs |
| Accrued provision for impairment | 6,398.29 |
（LXXXVIII） Gains from disposal of assets
| Item | The current period amount | Amount in previous period | Amount included in non-recurring profit or loss in the current period |
| Profit or loss from disposal of non-current assets (Note) | 163,529,971.97 | 1,886,136.92 | 163,529,971.97 |
| Total | 163,529,971.97 | 1,886,136.92 | 163,529,971.97 |
Note: it is mainly for the land acquisition and storage of Shenzhen Nanshan Power Zhongshan Company. Fordetails, please refer to the Note V (V) "Other receivables" to the financial statements.Refer to the Accounting Treatment of Relocation Compensation Matters in the Guidelines for the Application of
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
Regulatory Rules - Accounting No. 3 issued by the CSRC: costs such as loss on demolition of buildings and otherappurtenances, relocation expenses, and employee compensation paid during the period of suspension ofproduction and business, etc., incurred in order to fulfill the above asset disposal transactions are transferred toprofit or loss upon derecognition of the assets disposed of if they are expected to be reimbursed by theconsideration for the disposal of the assets in the future. The compensation price for land acquisition and storageof Plot A of Shenzhen Nanshan Power Zhongshan Company was RMB 224.7116 million, the final confirmed costand expense expenditure of Plot A was RMB 61.693 million, and the net income from land acquisition and storagewas RMB 163.0186 million. The specific calculation is as follows (unit: RMB 10,000):
| Item | Amount |
| Compensation for land acquisition and storage of Plot A | 22,471.16 |
| Subtotal of revenue | 22,471.16 |
| Losses from demolition of buildings, land use right and other appurtenances | 2,688.35 |
| Employee compensation paid during the period of suspension of production and business | 2,178.32 |
| Relocation expenses | 1,302.62 |
| Subtotal of expenditure | 6,169.30 |
| Net income from land acquisition and storage | 16,301.86 |
（LXXXIX） Non-operating revenue
| Item | The current period amount | Amount in previous period | Amount included in non-recurring profit or loss in the current period |
| Subsidies for house demolition and resettlement | 453,068.40 | 2,481,631.19 | 453,068.40 |
| Revenue from compensation for violation | 100,000.00 | 100,000.00 | |
| Compensation for power outage and insurance | 5,522,309.24 | ||
| Payables that cannot be paid | 3,683,060.82 | ||
| Total | 553,068.40 | 11,687,001.25 | 553,068.40 |
（XC） Non-operating expenses
| Item | The current period amount | Amount in previous period | Amount included in non-recurring profit or loss in the current period |
| Losses from damage or scrapping of non-current assets | 121,310.78 | 7,745.81 | 121,310.78 |
| Others | 14,023.70 | 58,370.42 | 14,023.70 |
| Total | 135,334.48 | 66,116.23 | 135,334.48 |
（XCI） Income tax expenses
1. Income tax expenses schedule
| Item | The current period amount | Amount in previous period |
| Current income tax expenses | 9,140,402.85 | |
| Deferred income tax expenses | 547,366.49 | |
| Total | 9,687,769.34 |
2. Adjustment process of accounting profit and income tax expenses
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Item | The current period amount |
| Total profit | 73,615,193.82 |
| Income tax expenses calculated at statutory [or applicable] tax rate | 11,637,362.48 |
| Impact of different tax rates applicable to subsidiaries | 15,803,032.94 |
| Impact of non-taxable revenue | -984,506.81 |
| Impact of non-deductible costs, expenses and losses | 945,463.55 |
| Impact of deductible losses on the use of unrecognized deferred tax assets in prior periods | -53,730,954.71 |
| Impact of deductible temporary differences or deductible losses for which no deferred tax assets have been recognized in the current period | 36,017,371.89 |
| Income tax expenses | 9,687,769.34 |
（XCII） Earnings per share
1. Basic earnings per share
Basic earnings per share is calculated by dividing the consolidated net profit attributable to ordinary shareholdersof the parent company by the weighted average of outstanding ordinary shares of the Company:
| Item | The current period amount | Amount in previous period |
| Consolidated net profit attributable to ordinary shareholders of the parent company | 21,908,828.57 | 4,158,797.10 |
| Weighted average of outstanding ordinary shares of the Company | 602,762,596.00 | 602,762,596.00 |
| Basic earnings per share | 0.0363 | 0.0069 |
2. Diluted earnings per share
Diluted earnings per share are calculated by dividing the consolidated net profit (diluted) attributable to ordinaryshareholders of the parent company by the weighted average (diluted) of the Company's outstanding ordinaryshares:
| Item | The current period amount | Amount in previous period |
| Consolidated net profit attributable to ordinary shareholders of the parent company (diluted) | 21,908,828.57 | 4,158,797.10 |
| Weighted average of outstanding ordinary shares of the Company (diluted) | 602,762,596.00 | 602,762,596.00 |
| Diluted earnings per share | 0.0363 | 0.0069 |
（XCIII） Statement of cash flows items
1. Cash received from other operating activities
| Item | The current period amount | Amount in previous period |
| Current accounts received, etc. | 9,172,925.54 | 9,200,800.64 |
| Interest income | 5,646,611.86 | 6,416,103.02 |
| L/G deposit recovered | 5,453,862.93 | |
| Income from government subsidies | 372,441.17 | 30,154,963.47 |
| Total | 20,645,841.50 | 45,771,867.13 |
2. Cash paid for other operating activities
| Item | The current period amount | Amount in previous period |
| Expenses from payment period | 54,929,118.83 | 32,799,144.64 |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Item | The current period amount | Amount in previous period |
| Paid L/G deposit | 7,912,100.00 | |
| Current accounts paid, etc. | 2,225,743.89 | 3,524,581.70 |
| Total | 65,066,962.72 | 36,323,726.34 |
3. Cash received from other investing activities
| Item | The current period amount | Amount in previous period |
| Redemption of structured deposits and cash of certificates of deposit | 452,000,000.00 | 620,010,220.37 |
| Received interest on current accounts among related parties | - | 344,800.00 |
| Total | 452,000,000.00 | 620,355,020.37 |
4. Cash paid for other investing activities
| Item | The current period amount | Amount in previous period |
| Cash of structured deposits and certificates of deposit | 226,000,000.00 | 446,000,000.00 |
| Cash paid for disposal of assets | - | 393,066.79 |
| Total | 226,000,000.00 | 446,393,066.79 |
5. Cash paid for other financing activities
| Item | The current period amount | Amount in previous period |
| Payment for principal and interest of lease liabilities | 6,927,038.90 | 6,314,826.00 |
| Total | 6,927,038.90 | 6,314,826.00 |
6. Changes in liabilities arising from financing activities
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance | ||
| Cash changes | Non-cash changes | Cash changes | Non-cash changes | |||
| Short-term borrowings | 341,237,886.72 | 313,558,036.22 | 7,046,969.68 | 393,227,883.43 | 268,615,009.19 | |
| Long-term borrowings | 58,829,426.30 | 1,167,282.14 | 59,996,708.44 | |||
| Non-current liabilities due within one year | 3,926,326.45 | 4,466,835.32 | 3,926,326.45 | 4,466,835.32 | ||
| Lease liabilities | 9,182,836.13 | 2,280,749.20 | 4,776,176.75 | 2,125,910.18 | ||
| Total | 403,993,639.47 | 313,558,036.22 | 21,863,923.27 | 459,431,667.52 | 4,776,176.75 | 275,207,754.69 |
（XCIV） Supplementary information of Statement of Cash Flows
1. Supplementary information of Statement of Cash Flows
| Supplementary information | The current period amount | Amount in previous period |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Supplementary information | The current period amount | Amount in previous period |
| 1. Adjusting net profit to cash flows from operating activities | ||
| Net profit | 63,927,424.48 | -2,005,692.93 |
| Plus: losses from credit impairment | 11,381,410.65 | -1,190,348.40 |
| Provision for asset impairment | 66,389,539.68 | 162,985.78 |
| Depreciation and amortization of investment properties | 166,556.76 | 168,777.60 |
| Depreciation of fixed assets | 21,518,878.65 | 29,328,545.77 |
| Depreciation of right-of-use assets | 4,803,425.47 | 5,440,671.48 |
| Amortization of intangible assets | 344,504.01 | 589,301.32 |
| Amortization of long-term deferred expenses | 2,393,647.01 | 916,014.97 |
| Amortization of deferred income | -6,346,472.10 | -17,966,248.53 |
| Losses from disposal of fixed assets, intangible assets and other long-term assets (income expressed with "-") | -163,529,971.97 | -1,886,136.92 |
| Losses on write-off of fixed assets (income expressed with "-") | 121,310.78 | 7,745.81 |
| Losses from changes in fair value ("-" for gains) | - | |
| Financial expenses (income expressed with "-") | 11,829,545.09 | 18,665,115.07 |
| Investment losses (income expressed with "-") | -84,488,299.90 | -34,997,898.47 |
| Decrease in deferred tax assets (increases expressed with "-") | 547,366.49 | |
| Increase in deferred tax liabilities (decreases expressed with "-") | - | |
| Decrease in inventories (increases expressed with "-") | 16,156,331.74 | -1,023,698.59 |
| Decrease in operating receivables (increases expressed with "-") | 36,300,129.85 | 43,475,853.03 |
| Increase in operating payables (decreases expressed with "-") | -19,151,092.74 | -140,056,963.91 |
| Others | ||
| Net cash flows from operating activities | -37,635,766.05 | -100,371,976.92 |
| 2. Significant investments and financing activities that do not involve cash receipts and payments | ||
| Conversion of debt into capital | ||
| Convertible corporate bonds due within one year | ||
| 3. Net changes in cash and cash equivalents | ||
| Ending balance of cash | 471,067,121.66 | 310,734,919.56 |
| Less: beginning balance of cash | 310,734,919.56 | 648,021,672.06 |
| Plus: ending balance of cash equivalents | ||
| Less: beginning balance of cash equivalents | - | |
| Net increase in cash equivalents | 160,332,202.10 | -337,286,752.50 |
2. Composition of cash and cash equivalents
| Item | Ending balance | Balance at the end of last year |
| I. Cash | 471,067,121.66 | 310,734,919.56 |
| Including: cash on hand | 30,264.98 | 30,329.83 |
| Bank deposits readily available for payment | 471,032,644.67 | 310,694,227.98 |
| Other monetary funds readily available for payment | 4,212.01 | 10,361.75 |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Item | Ending balance | Balance at the end of last year |
| Deposits with the central bank available for payment | ||
| Interbank deposits | ||
| Interbank lending | ||
| II. Cash equivalents | ||
| Including: bond investments due within three months | ||
| III. Balance of ending cash and cash equivalents | 471,067,121.66 | 310,734,919.56 |
| Including: restricted cash and cash equivalents used by the parent company or subsidiaries within the group |
3. Monetary funds that are not classified as cash and cash equivalents
| Item | The current period amount | Amount in previous period | Reasons for not being classified as cash and cash equivalents |
| L/G deposit | 7,912,100.00 | 5,453,862.93 | Frozen, restricted |
| Total | 7,912,100.00 | 5,453,862.93 |
（XCV） Assets with restricted ownership or right of use
| Item | Ending book value | Reason for restriction |
| Monetary funds | 7,912,100.00 | L/G deposit |
（XCVI） Foreign currency monetary items
| Item | Ending foreign currency balance | Conversion exchange rate | Ending converted RMB balance |
| Monetary funds | |||
| Including: USD | 841,884.64 | 7.1884 | 6,051,803.55 |
| EUR | 1,018.00 | 7.5257 | 7,661.17 |
| HKD | 146,681.29 | 0.9260 | 135,832.74 |
| SGD | 2,858.03 | 5.2562 | 15,022.47 |
| Total | 6,210,319.93 | ||
（XCVII） Lease
1. The Company serves as the Lessee
| Item | The current period amount | Amount in previous period |
| Interest expenses on lease liabilities | 176,995.22 | 264,995.49 |
| Total cash outflow related to lease | 5,048,300.00 | 6,314,826.00 |
| Variable lease payments not included in the measurement of lease liabilities | ||
| Lease expenses for short-term lease or low-value assets simplified |
2. The Company serves as the Lessor
Operating leases when serving as the Lessor
| Item | Lease income | Including: revenue related to variable lease payments not included in lease |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| receipts | ||
| House lease | 1,435,783.34 | |
| Total | 1,435,783.34 |
R&D expenditures
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Employee compensation | 14,757,285.96 | 24,140,938.27 |
| Depreciation cost | 6,091,463.31 | 1,705,020.54 |
| Others | 493,029.00 | 993,953.93 |
| Total | 21,341,778.27 | 26,839,912.74 |
| Including: expensed R&D expenditures | 21,341,778.27 | 26,839,912.74 |
| Total | 21,341,778.27 | 26,839,912.74 |
Equity in other entities（XCVIII） Equity in subsidiaries
1. Composition of enterprise group
| Name of subsidiary | Main place of business | Shareholding ratio (%) | Acquisition method | |
| Direct | Indirect | |||
| Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. | Zhongshan | 80.00 | Establishment | |
| Shenzhen Nanshan Power Gas Turbine Engineering Technology (Shenzhen) Co., Ltd. | Shenzhen | 100.00 | Establishment | |
| Shenzhen Nanshan Power Environmental Protection (Shenzhen) Co., Ltd. | Shenzhen | 100.00 | Establishment | |
| Shenzhen Xiefu Energy Co., Ltd. | Shenzhen | 50.00 | Establishment | |
| Shenzhen New Power Industrial Co., Ltd. | Shenzhen | 100.00 | Establishment | |
| Shennan Energy (Singapore) Co., Ltd. | Singapore | 100.00 | Establishment | |
| Hong Kong Syndisome Co., Ltd. | Hongkong | 100.00 | Establishment | |
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | Zhuhai | 99.96 | Establishment | |
| Shenzhen Nanshan Power Xiwan Energy (Zhongshan) Co.,Ltd. | Zhongshan | 51.00 | Establishment | |
2. Important non-wholly owned subsidiaries
| Name of subsidiary | Shareholding ratio of minority shareholders (%) | Profits and losses attributable to minority shareholders in the current period | Dividends declared to be distributed to minority shareholders the current period | Ending balance of minority interests |
| Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. | 20% | 13,278,764.45 | -93,004,719.71 |
3. Main financial information of important non-wholly owned subsidiaries
| Name of subsidiary | Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. | |||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Name of subsidiary | Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. | |||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Ending balance | 231,477,900.81 | 84,593,178.85 | 316,071,079.66 | 732,191,175.33 | - | 732,191,175.33 |
| Amount at the end of last year | 24,201,215.36 | 244,116,938.96 | 268,318,154.32 | 696,314,557.88 | 104,000,000.00 | 800,314,557.88 |
Continued
| Name of subsidiary | The current period amount | Amount in previous period | ||||||
| Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | |
| Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. | 11,113,824.47 | 66,876,307.89 | 66,876,307.89 | -4,165,698.91 | 62,908,561.23 | -31,198,053.79 | -31,198,053.79 | -1,869,970.79 |
（XCIX） Equity in joint venture arrangements or associates
1. Significant joint ventures or associates
| Name of joint ventures or associates | Main place of business | Place of registration | Nature of business | Shareholding ratio (%) | Accounting treatments for investments in joint ventures or associates | Whether the Company's activities are strategic | |
| Direct | Indirect | ||||||
| Liaoyuan Environmental Protection (note) | Yixing, Jiangsu | Yixing, Jiangsu | Environmental protection | 9.935 | Equity method | No | |
Note: the Company invested RMB 72,873,680.00 in Liaoyuan Environmental Protection, accounting for 9.935%of the equity of Liaoyuan Environmental Protection, and is the second largest shareholder of LiaoyuanEnvironmental Protection. The Board of Directors of Liaoyuan Environmental Protection has five directors. OnMarch 12, 2022, the Company appointed one director, constituting a significant impact on LiaoyuanEnvironmental Protection.
2. Main financial information of significant joint ventures or associates
| Item | Ending balance/current amount | Balance at the end of the previous year/Amount for the previous period |
| Liaoyuan Environmental Protection | Liaoyuan Environmental Protection | |
| Current assets | 651,001,263.41 | 545,635,587.61 |
| Non-current assets | 404,984,086.78 | 419,944,510.12 |
| Total assets | 1,055,985,350.19 | 965,580,097.73 |
| Current liabilities | 203,426,112.83 | 198,836,634.15 |
| Non-current liabilities | 26,261,285.84 | 198,836,634.15 |
| Total liabilities | 229,687,398.67 | 225,039,488.72 |
| Minority interests | 251,069,667.59 | 223,928,134.66 |
| Equity attributable to shareholders of the parent company | 575,228,283.93 | 516,612,474.35 |
| Net asset share calculated based on shareholding ratio | 57,148,930.01 | 51,325,449.33 |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Item | Ending balance/current amount | Balance at the end of the previous year/Amount for the previous period |
| Liaoyuan Environmental Protection | Liaoyuan Environmental Protection | |
| Adjustments | 32,502,512.58 | 33,508,393.41 |
| -Others | 32,502,512.58 | 33,508,393.41 |
| Book value of equity investments in associates | 90,587,521.44 | 84,833,842.74 |
| Fair value of equity investments in associates with publicly quoted prices | - | - |
| Operating revenue | 699,720,001.48 | 660,404,337.83 |
| Net profit | 97,066,322.72 | 85,937,325.14 |
| Net profit attributable to shareholders of the parent company | 66,681,142.05 | 68,971,850.12 |
| Net profit from discontinued operations | ||
| Other comprehensive income | ||
| Total comprehensive income | 66,681,142.05 | 68,971,850.12 |
| Dividends received from associates in the current period | 809,700.00 | 1,214,550.00 |
Government subsidies（C） Liability items involving government subsidies
| Liabilities | Balance at the end of last year | New subsidies in the current period Amount | Amount included in non-operating revenue in the current period | Amount included in other income for the current period |
| Deferred income | 67,869,348.07 | 6,346,472.10 |
(Continued)
| Liabilities | Amount of cost offset in the current period | Other changes | Ending balance | Asset-related/ income-related |
| Deferred income | 61,522,875.97 | Asset related |
（CI） Government subsidies included in the current profit or loss
| Subsidy project | Amount incurred in the current period | Amount incurred in previous period |
| Other benefits | 6,832,542.00 | 44,431,212.00 |
| 6,832,542.00 | 44,431,212.00 |
Risks related to financial instrumentsThe Company's main financial instruments include equity investments, long-term and short-term borrowings,accounts receivable, accounts payable, other receivables, etc. For details of various financial instruments, pleaserefer to the relevant items in the Note V. The risks related to these financial instruments, and the risk managementpolicies adopted by the Company to mitigate these risks are described below. The management of the Companymanages and monitors these risk exposures to ensure that the above risks are controlled within a limited range.The Company uses sensitivity analysis techniques to analyze the impact that reasonable and probable changes inrisk variables may have on current profit or loss or shareholders' equity. As any risk variable seldom changes inisolation, and the correlation between the variables will have a significant effect on the final affected amount ofthe change of a risk variable, the following contents are carried out under the assumption that the change of eachvariable is independently:
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
（CII） Credit riskCredit risk refers to the risk that one party to financial instruments fails to perform its obligations, causing theother party to suffer financial losses. The Company is mainly exposed to customer credit risk caused by creditsales. Before entering into a new contract, the Company assesses the credit risk of the new customers, includingexternal credit ratings and, in some cases, bank references (when this information is available). The Company setsa credit limit for each customer, which is the maximum amount for which no additional approval is required.The Company ensures that the Company's overall credit risk is within a controllable range through quarterlymonitoring of credit ratings of existing customers and monthly review of aging analysis of accounts receivable.When monitoring the credit risk of customers, customers are grouped according to their credit characteristics.Customers rated as "high risk" are placed on the restricted customer list and may only be given for credit sales bythe Company in the future with additional approval, otherwise they must be required to pay the correspondingamount in advance.（CIII） Market riskMarket risk of financial instruments refers to the risk that the fair value or future cash flows of financialinstruments fluctuates due to changes in market prices, including exchange rate risk, interest rate risk and otherprice risks.
(1) Interest rate risk
Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments fluctuates due tochanges in market interest rates. The Company's risk of changes in cash flows of financial instruments due tochanges in interest rates is mainly related to variable-rate bank borrowings.The sensitivity analysis of interest rate risk is based on the following assumptions:
Changes in market interest rates affect interest income or expenses of variable-rate financial instruments; Forfixed-rate financial instruments measured fair value, changes in market interest rates only affect their interestincome or expenses; For derivative financial instruments designated as hedging instruments, changes in marketinterest rates affect their fair value, and all interest rate hedging is expected to be highly effective; Changes in thefair value of derivative financial instruments and other financial assets and liabilities which are calculated byusing the discounted cash flow method at the market interest rate on the balance sheet date.As of December 31, 2024, the Company's bank borrowings with floating interest rate totaled RMB 2,309,631.11.Based on the above assumptions, with other variables unchanged, assuming a 5% changes in interest rates, thepre-tax impact on current profit or loss and shareholders' equity is as follows:
| Changes in interest rates | Current year | Previous year | ||
| Impact on profits | Impact on shareholders' equity | Impact on profits | Impact on shareholders' equity | |
| Increase of 5% | -115,481.56 | -115,481.56 | -204,375.14 | -204,375.14 |
| Decrease of 5% | 115,481.56 | 115,481.56 | 204,375.14 | 204,375.14 |
(2) Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flows of financial instruments fluctuates dueto fluctuations in foreign exchange rates. The Company tries its best to match foreign currency revenues withforeign currency expenditures to reduce exchange rate risk. In addition, the Company may also enter into forwardforeign exchange contracts or currency swap contracts to avoid exchange rate risk. During the current period andthe previous period, the Company did not sign any forward foreign exchange contract or currency swap contract.
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
The exchange rate risk exposed to the Company mainly comes from financial assets and financial liabilitiesdenominated in foreign currencies, and the amounts of foreign-currency financial assets and foreign-currencyfinancial liabilities converted into RMB are listed as follows:
| Item | Ending balance | Balance at the end of last year | ||||
| USD | Other foreign currencies | Total | USD | Other foreign currencies | Total | |
| Monetary funds | 6,051,803.55 | 158,516.38 | 6,210,319.93 | 5,931,199.10 | 188,141.17 | 6,119,340.27 |
| Total | 6,051,803.55 | 158,516.38 | 6,210,319.93 | 5,931,199.10 | 188,141.17 | 6,119,340.27 |
As of December 31, 2024, with all other variables remaining unchanged, if RMB appreciates or depreciates by 5%against foreign currencies, the Company's net profit will increase or decrease by RMB 310,516. The Managementbelieves that 5% reasonably reflects the reasonable range of possible changes in RMB against foreign currenciesin the following year.（CIV） Liquidity riskLiquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligations that is settled bythe delivery of cash or other financial assets. It is the Company's policy to ensure that it has sufficient cash torepay its debts as and when they fall due. Liquidity risk is centrally controlled by the Company's FinanceDepartment. The Finance Department ensures that the Company has sufficient funds to repay its debt under allreasonable forecasts by monitoring cash balances, readily realizable securities, and rolling forecasts of cash flowsover the next 12 months.Disclosure of fair valueThe input value used for measuring fair value is divided into three levels:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Companycan access on the measurement date.Level 2 inputs are directly or indirectly observable inputs of relevant assets or liabilities other than Level 1 inputs.Level 3 inputs are unobservable inputs of related assets or liabilities.The level to which the results of fair value measurement belong is determined by the lowest level of inputs thatare significant to fair value measurement as a whole.
1. Fair values of assets and liabilities measured at fair value as at December 31, 2024
| Item | Fair value as at December 31, 2024 | |||
| Measured at the fair value of level 1 | Measured at the fair value of level 2 | Measured at the fair value of level 3 | Total | |
| Continuous measurement at fair value | ||||
| Other investments in equity instruments | 354,798,054.57 | 354,798,054.57 | ||
| Including: non-trading equity instrument investments | 354,798,054.57 | 354,798,054.57 | ||
| Total assets with continuous measurement at fair value | 354,798,054.57 | 354,798,054.57 | ||
2. Valuation techniques and qualitative and quantitative information of important parameters used for itemsmeasured at the fair value of Level 2 on a continuing and non-continuous basisAt the end of the period, the structured deposits are taken as the fair value according to the type of financialproducts and the forecast of future cash flows.
3. Basis for determining the market price of items measured at the fair value of Level 3 on a continuing and non-continuous basis
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
For non-trading equity instruments investments, the Company uses valuation techniques to determine their fairvalue. The valuation models used mainly are discounted cash flow model and market comparable company model,etc. The input values of valuation techniques mainly include risk-free interest rate, benchmark interest rate,exchange rate, credit spread, liquidity premium, illiquidity discount, etc.Related parties and related transactions（CV） Information on the parent company of the CompanyThe Company does not have a parent company as none of its shareholders hold more than 50% of the Company'sshares and cannot form a control relationship with the Company by other means.（CVI） Information on the Company's subsidiariesFor details of the Company's subsidiaries, please refer to "VII. (I) Interests in Other entities" in the notes.（CVII） Information on the Company's joint ventures and associatesFor details of the Company's significant joint ventures or associates, please refer to the Note "VII. (II) Equity injoint venture arrangements or associates".（CVIII） Information on other related parties
| Name of other related parties | Relationship between other related parties and the Company |
| Shenzhen Energy Corporation (hereinafter referred to as "Energy Corporation") | Legal person holding more than 5% of the Company's shares |
| Shenzhen Guangju Industrial Co., Ltd. | Legal person holding more than 5% of the Company's shares |
| HONG KONG NAM HOI (INTERNATIONAL) LTD | Legal person holding more than 5% of the Company's shares |
| Shenzhen Capital Holdings Co., Ltd. | Legal person that indirectly holds more than 5% of the Company's shares through Energy Corporation |
| Artron Art (Group) Co., Ltd. | Zhang Ming, the supervisor of the Company, serves as a director of the Company |
| Shenzhen MTC Co., Ltd. | Holding enterprise of the Company's largest shareholder |
| Directors, supervisors and senior officers of the Company | Key managers |
（CIX） Related transactions
1. Related transactions of purchase and sale of goods and rendering and acceptance of servicesPurchase of goods/acceptance of services
| Related party | Details of related transactions | The current period amount | Amount in previous period |
| Artron Art (Group) Co., Ltd. and its subsidiaries | Purchase of goods | 28,918.50 | 146,016.00 |
Sales of goods/rendering of services
| Related party | Details of related transactions | The current period amount | Amount in previous period |
| SHENZHEN ENERGY Corporation | Services for property management | 4,404,385.09 | |
| Shenzhen MTC Co., Ltd. | Energy management services | 1,226,856.89 | - |
| China Science and Technology Development Co., Ltd. | Technical transformation service | 58,800.00 | - |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Related party | Details of related transactions | The current period amount | Amount in previous period |
| Shenzhen Clou Electronics Co., Ltd. and its subsidiary | Engineering installation services | 252,689.25 | - |
2. Related party guarantees
The Company has no related-party guarantees.
3. Remuneration of key officers
| Item | The current period amount | Amount in previous period |
| Remuneration of key officers | RMB 6.9511 million | RMB 5.9984 million |
（CX） Receivables and payables of related parties
1. Receivables
| Project name | Related party | Ending balance | Balance at the end of last year | ||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | ||
| Other receivables | Huidong Xiefu | - | 15,532,630.74 | ||
Commitments and contingencies（CXI） Important commitments
1. Information on letters of guarantee issued as of December 31, 2024The Company applied to Shanghai Pudong Development Bank Co., Ltd. Shenzhen Branch for issuing a paymentguarantee within the credit line, with an amount of RMB 30 million and due on July 16, 2025.The Company's subsidiary, Shenzhen Nanshan Power Environmental Protection Company, applied to ChinaMerchants Bank Co., Ltd. Shenzhen Branch for issuing a performance guarantee within the credit line, with anamount of RMB 2.8 million and due on March 31, 2025. Shenzhen Nanshan Power Environmental ProtectionCompany applied to China Merchants Bank Co., Ltd. Shenzhen Branch for issuing a performance guaranteewithin the credit line, with an amount of RMB 3.7 million and due on March 31, 2026.The Company's subsidiary, Shenzhen Nanshan Power Engineering Company, applied to Agricultural Bank ofChina Limited Shenzhen OCT Sub-branch for issuing a performance guarantee within the credit line, with anamount of RMB 1.4121 million and due on June 30, 2027.
2. Other commitments
As of December 31, 2024, except for the above matters, the Company had no other important commitmentsrequired to be disclosed.（CXII） ContingenciesAs of December 31, 2024, the Company had no contingencies required to be disclosed.Events after the balance sheet dateAs of December 31, 2024, the Company had no other subsequent events required to be disclosed.Other important events（CXIII） Information on segments
1. Determination basis and accounting policies of reporting segmentsFor management purposes, the Company and subsidiaries are divided into business units based on products and
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
services. The Company has three reporting segments as follows:
(1) Power Production and Sale Division;
(2) Integrated Energy Service Segment;
(3) Other segments
The Company's management periodically evaluates the operating results of its operating segments to decide on theallocation of resources to them and to evaluate their performance.Segment reporting information is disclosed in accordance with the accounting policies and measurement criteriaused by the segments in reporting to the Management, which are consistent with the basis of accounting andmeasurement used in the preparation of the financial statements.
2. Financial information of reporting segments
| Item | Power Production and Sale Division | Integrated Energy Service Segment | Other Segments | Inter-segment offsetting | Total |
| Operating revenue | 420,334,462.86 | 39,382,694.07 | 5,364,131.87 | 22,109,332.95 | 442,971,955.85 |
| Operating costs | 405,195,393.12 | 28,530,461.10 | 1,222,824.76 | 19,501,946.59 | 415,446,732.39 |
| Total assets | 2,270,795,129.83 | 95,858,355.43 | 264,470,740.27 | 618,387,589.94 | 2,012,736,635.59 |
| Total liabilities | 702,631,828.38 | 42,488,019.60 | 12,747,325.44 | 253,054,378.53 | 504,812,794.89 |
（CXIV） Others
1. Annuity plan
According to the Company's enterprise annuity plan, the Company accrues and pays enterprise annuities at 8% ofemployees' wages.Notes to the main items of the parent company's financial statements（CXV） Accounts receivable
1. Disclosure of accounts receivable on an aging basis
| Aging | Ending balance | Balance at the end of last year |
| Within 1 year | 26,641,173.11 | 26,981,407.91 |
| Subtotal | 26,641,173.11 | 26,981,407.91 |
| Less: provision for bad debts | ||
| Total | 26,641,173.11 | 26,981,407.91 |
2. Accounts receivable are classified and disclosed according to the method of provision for bad debts
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | |||||
| Provision for bad debts on a credit risk portfolio basis | 26,641,173.11 | 100.00 | 26,641,173.11 | ||
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Total | 26,641,173.11 | 100.00 | 26,641,173.11 | ||
| Category | Balance at the end of last year | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | |||||
| Provision for bad debts on a credit risk portfolio basis | 26,981,407.91 | 100.00 | 26,981,407.91 | ||
| Total | 26,981,407.91 | 100.00 | 26,981,407.91 | ||
Provision for bad debts made by portfolio:
Items accrued on a portfolio basis:
| Description | Ending balance | ||
| Accounts receivable | Provision for bad debts | Provision ratio (%) | |
| Portfolio II: receivables from power production and sales | 26,641,173.11 | ||
| Total | 26,641,173.11 | ||
3. Accounts receivable and contract assets of the top five ending balances by debtors
| Entity name | Ending balance of accounts receivable | Ending balance of contract assets | Ending balance of accounts receivable and contract assets | Proportion to the total ending balance of accounts receivable and contract assets (%) | Ending balance of provision for bad debts of accounts receivable and provision for contract asset impairment |
| Shenzhen Power Supply Bureau Co., Ltd. | 26,641,173.11 | 26,641,173.11 | 100.00 | ||
| Total | 26,641,173.11 | 26,641,173.11 | 100.00 |
（CXVI） Other receivables
| Item | Ending balance | Balance at the end of last year |
| Interest receivable | ||
| Dividends receivable | ||
| Other receivables | 614,157,681.93 | 714,553,901.02 |
| Total | 614,157,681.93 | 714,553,901.02 |
1. Other receivables
(1) Disclosure based on aging
| Aging | Ending balance | Balance at the end of last year |
| Within 1 year | 100,172,359.91 | 711,403,571.07 |
| 1 to 2 years | 512,439,711.54 | 2,500.00 |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Aging | Ending balance | Balance at the end of last year |
| 2 to 3 years | ||
| Over 3 years | 27,570,625.97 | 29,172,845.44 |
| Total | 640,182,697.42 | 740,578,916.51 |
(2) Disclosure by category
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | 26,025,015.49 | 4.07 | 26,025,015.49 | 100.00 | - |
| Provision for bad debts on a credit risk portfolio basis | 614,157,681.93 | 95.93 | 614,157,681.93 | ||
| Total | 640,182,697.42 | 100.00 | 26,025,015.49 | 4.07 | 614,157,681.93 |
Continued
| Category | Balance at the end of last year | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | 26,025,015.49 | 3.51 | 26,025,015.49 | 100.00 | |
| Provision for bad debts on a credit risk portfolio basis | 714,553,901.02 | 96.49 | 714,553,901.02 | ||
| Total | 740,578,916.51 | 100.00 | 26,025,015.49 | 3.51 | 714,553,901.02 |
(3) Provision for bad debts on an individual basis
| Description | Ending balance | |||
| Book balance | Provision for bad debts | Provision ratio (%) | Reasons for provision | |
| Huiyang Kangtai Industrial Company | 14,311,626.70 | 14,311,626.70 | 100.00 | Historical leftover items, which date back to long time ago and are expected to be irrecoverable |
| Receivables from employee benefit fund dividends and taxes | 9,969,037.63 | 9,969,037.63 | 100.00 | |
| Receivables from purchase of employee dormitories | 1,736,004.16 | 1,736,004.16 | 100.00 | |
| Others | 8,347.00 | 8,347.00 | 100.00 | |
| Total | 26,025,015.49 | 26,025,015.49 | 100.00 | |
(4) Provision for bad debts on a portfolio basis
| Description | Ending balance | ||
| Other receivables | Provision for bad debts | Provision ratio (%) | |
| Portfolio IV: current accounts of related parties within the consolidation | 611,645,846.09 | ||
| Portfolio V: guarantee, deposit and petty cash portfolio | 1,528,568.67 | ||
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Description | Ending balance | ||
| Other receivables | Provision for bad debts | Provision ratio (%) | |
| Portfolio VII: other receivables and temporary payments | 983,267.17 | ||
| Total | 614,157,681.93 | ||
(5) Provision for bad debts
| Provision for bad debts | The first stage | The second stage | The third phase | Total |
| Expected credit losses over the next 12 months | Expected credit loss for the entire duration (without credit impairment) | Expected credit loss for the entire duration (with credit impairment) | ||
| Balance at the end of last year | 26,025,015.49 | 26,025,015.49 | ||
| Balance at the end of the previous year in the current period | ||||
| --Transfer to the second stage | ||||
| --Transfer to the third stage | ||||
| --Reverse to the second stage | ||||
| --Reverse to the first stage | ||||
| Provision for the current period | ||||
| Reverse for the current period | ||||
| Charge-off for the current period | ||||
| Write-off for the current period | ||||
| Other changes | ||||
| Ending balance | 26,025,015.49 | 26,025,015.49 |
(6) Classification by nature of payment
| Nature of payment | Ending book balance | Book balance at the end of last year |
| Transactions among related parties within the combination | 611,645,846.09 | 712,425,641.88 |
| Other receivables and temporary payments | 15,170,475.09 | 14,645,149.15 |
| Receivable from employees | 11,837,807.57 | 11,882,548.16 |
| Margin, security deposit and petty cash portfolio | 1,528,568.67 | 1,625,577.32 |
| Total | 640,182,697.42 | 740,578,916.51 |
(7) Centralized fund management
| Amounts included in other receivables due to centralized fund management | 607,171,580.03 |
| Situation description | The Company centralizedly manages the funds, and the principal and interest of the subsidiary receivable is RMB 607,171,580.03, and the principal and interest of the subsidiary payable is RMB 130,549,686.64. |
（CXVII） Long-term equity investments
| Item | Ending balance | Balance at the end of last year | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Investments in | 923,167,363.65 | 445,002,245.26 | 478,165,118.39 | 855,811,150.92 | 445,002,245.26 | 410,808,905.66 |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Item | Ending balance | Balance at the end of last year | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| subsidiaries | ||||||
| Investments in associates and joint ventures | 90,587,521.44 | 90,587,521.44 | 84,833,842.74 | 84,833,842.74 | ||
| Total | 1,013,754,885.09 | 445,002,245.26 | 568,752,639.83 | 940,644,993.66 | 445,002,245.26 | 495,642,748.40 |
1. Investments in subsidiaries
| Investees | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance | Provision for impairment in the current period | Ending balance of provision for impairment |
| Shenzhen Xiefu Energy Co., Ltd. | 26,650,000.00 | 26,650,000.00 | ||||
| Shennan Energy (Singapore) Co., Ltd. | 6,703,800.00 | 6,703,800.00 | ||||
| Shenzhen New Power Industrial Co., Ltd. | 175,637,763.02 | 257,272,360.58 | 49,916,147.85 | 382,993,975.75 | 13,709,556.49 | |
| Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. | 410,740,001.00 | - | 410,740,001.00 | 410,740,000.00 | ||
| Shenzhen Nanshan Power Gas Turbine Engineering Technology (Shenzhen) Co., Ltd. | 24,460,360.00 | - | 24,460,360.00 | |||
| Shenzhen Nanshan Power Environmental Protection (Shenzhen) Co., Ltd. | 70,191,704.81 | - | 70,191,704.81 | 20,552,688.77 | ||
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | 141,427,522.09 | - | 140,000,000.00 | 1,427,522.09 | ||
| Total | 855,811,150.92 | 257,272,360.58 | 189,916,147.85 | 923,167,363.65 | 445,002,245.26 |
2. Investments in associates and joint ventures
| Investees | Beginning balance | Beginning balance of provision for impairment | Increase and decrease in the current period | |||
| Additional investment | Reduced investment | Investment profit or loss recognized under the equity method | Adjustments to the other comprehensive income | |||
| Associates | 84,833,842.74 | 6,563,378.70 | ||||
| Subtotal | 84,833,842.74 | 6,563,378.70 | ||||
| Total | 84,833,842.74 | 6,563,378.70 | ||||
Continued:
| Investees | Increase and decrease in the current period | Ending balance | Ending balance of provision for impairment | |||
| Other changes in equity | Declaration of cash dividend or profits | Provision for impairment | Others | |||
| Associates | 809,700.00 | 90,587,521.44 | ||||
| Subtotal | 809,700.00 | 90,587,521.44 | ||||
| Total | 809,700.00 | 90,587,521.44 | ||||
（CXVIII） Operating revenue and operating costs
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
1. Operating revenue and operating costs
| Item | The current period amount | Amount in previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 322,454,274.03 | 339,266,651.44 | 264,690,176.35 | 357,865,804.80 |
| Other business | 57,022,453.48 | 3,607,161.70 | 126,959,772.74 | 5,823,727.52 |
| Total | 379,476,727.51 | 342,873,813.14 | 391,649,949.09 | 363,689,532.32 |
2. Break down by product or service type
| Item | The current period amount | Amount in previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Power production and sale | 379,072,551.36 | 342,872,787.50 | 391,340,842.07 | 363,617,073.55 |
| Others | 404,176.15 | 1,025.64 | 309,107.02 | 72,458.77 |
| Total | 379,476,727.51 | 342,873,813.14 | 391,649,949.09 | 363,689,532.32 |
3. By region
| Item | The current period amount | Amount in previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Domestic | 379,476,727.51 | 342,873,813.14 | 391,649,949.09 | 363,689,532.32 |
| Total | 379,476,727.51 | 342,873,813.14 | 391,649,949.09 | 363,689,532.32 |
4. Revenue arising from contracts
| Item | The current period amount | Amount in previous period |
| Classification by contract performance obligations | ||
| Including: revenue recognized at a certain time point | 379,476,727.51 | 391,649,949.09 |
| Revenue recognized within a certain period of time | ||
| Total | 379,476,727.51 | 391,649,949.09 |
（CXIX） Investment income
| Item | The current period amount | Amount in previous period |
| Income from long-term equity investments accounted for equity method under the equity method | 6,563,378.70 | 6,966,316.30 |
| Investment income from financial assets held for trading during the holding period | 11,286,239.10 | 18,538,064.54 |
| Dividend income received from investments in equity instruments during the holding period | 17,474,329.61 | 340,206.13 |
| Dividends from long-term equity investments | 6,717,600.82 | |
| Total | 35,323,947.41 | 32,562,187.79 |
Supplementary information（CXX） Statement of non-recurring profit or loss in the current period
| Item | Amount | Remark |
| Profits and losses on disposal of non-current assets | 163,881,112.16 | |
| Tax returns, deduction and exemption approved beyond the authority or without official approval documents |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
| Item | Amount | Remark |
| Government subsidies included in the current profit or loss (except for government subsidies closely related to the enterprise business, obtained by quota or quantity at unified state standards) | 486,069.90 | |
| Fund occupation fees charged to non-financial enterprises included in the current profit or loss | ||
| The investment cost in subsidiaries, associates and joint ventures acquired by an enterprise is less than the gains from the fair value of the identifiable net assets of the investees that shall be enjoyed when acquiring the investment | ||
| Profit or loss from exchange of non-monetary assets | ||
| Profit or loss from entrusting others to invest or manage assets | ||
| Various provision for asset impairment made due to force majeure factors, such as natural disasters | ||
| Profits and losses of debt restructuring | ||
| Enterprise reorganizing expenses, such as employee accommodation costs and integration expenses, etc. | ||
| Profit or loss in excess of the fair value arising from transactions with obviously unfair transaction price | ||
| Current net profit or loss of subsidiaries from the beginning of the period to the combination date arising from business combination under the common control | ||
| Profit or loss arising from contingencies unrelated to the Company's normal business operations | ||
| Profit or loss from changes in fair value arising from holdings of financial assets held for trading, derivative financial assets, financial liabilities held for trading and derivative financial liabilities, and investment income from disposal of financial assets held for trading, derivative financial assets, financial liabilities held for trading, derivative financial liabilities and other debt investments, except for effective hedging operations related to the normal business of the Company | 11,286,239.10 | |
| Reversal of provision for impairment of receivables individually tested for impairment | ||
| Profit or loss from external entrusted loans | ||
| Profit or loss from fair value changes of investment properties that are subsequently measured by using the fair value model | ||
| Impact of one-off adjustment to the current profit or loss in accordance with laws and regulations on taxation and accounting on the current profit or loss | ||
| Revenue from custody fees obtained from entrusted operations | ||
| Other non-operating revenue and expenses other than the above | 775,495.19 | |
| Other profit or loss items that meet the definition of non-recurring profit or loss | ||
| Subtotal | 176,428,916.35 | |
| Less: income tax impact | 9,140,402.85 | |
| Changes in the amount of minority interests (after tax) | 57,871,593.36 | |
| Total | 109,416,920.14 |
（CXXI） Return on equity and earnings per share
| Profit during the reporting period | Weighted average rate of return on net assets (%) | Earnings per share (RMB) | |
| Basic earnings per share | Diluted earnings per share | ||
| Net profit attributable to ordinary shareholders of the Company | 1.49 | 0.0363 | 0.0363 |
| Net profit attributable to ordinary shareholders of the Company after deducting non-recurring profit or loss | -5.95 | -0.1452 | -0.1452 |
Notes to the Financial Statements for the Year Ended December 31, 2024 of Shenzhen Nanshan Power Co., Ltd.
Shenzhen Nanshan Power Co., Ltd.
(Official seal)
April 21, 2025