深圳南山热电股份有限公司2020年半年度财务报告
Shenzhen Nanshan Power Co., Ltd
Financial Report
2020-06-30I. Auditing report
The financial report of the semi-annual report has not been audited.II. Financial Statement
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated balance sheet
Shenzhen Nanshan Power Co., Ltd.
2020-06-30
In RMB
| Item | 2020-6-30 | 2019-12-31 |
| Current assets: | ||
| Monetary funds | 1,084,903,966.81 | 773,209,854.84 |
| Settlement provisions | ||
| Capital lent | ||
| Tradable financial assets | ||
| Derivative financial assets | ||
| Note receivable | 2,900,000.00 | |
| Account receivable | 132,037,467.25 | 178,150,580.32 |
| Receivable financing | ||
| Accounts paid in advance | 32,848,698.89 | 70,005,681.50 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 80,837,116.58 | 32,321,826.94 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Buying back the sale of financial assets | ||
| Inventories | 108,553,898.22 | 124,686,443.61 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 491,760,334.29 | 445,236,731.33 |
| Total current assets | 1,933,841,482.04 | 1,623,611,118.54 |
| Non-current assets: |
深圳南山热电股份有限公司2020年半年度财务报告
| Loans and payments on behalf | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 14,375,580.60 | 14,619,203.03 |
| Investment in other equity instrument | 60,615,000.00 | 60,615,000.00 |
| Other non-current financial assets | ||
| Investment real estate | 2,303,258.20 | 2,401,327.00 |
| Fixed assets | 954,992,268.00 | 1,381,675,872.68 |
| Construction in progress | 60,831,928.29 | 66,474,630.23 |
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | ||
| Intangible assets | 21,334,118.82 | 43,602,166.44 |
| Expense on Research and Development | ||
| Goodwill | ||
| Long-term expenses to be apportioned | 1,048,199.78 | 1,174,171.16 |
| Deferred income tax asset | 2,206,049.69 | 2,206,049.69 |
| Other non-current asset | 22,882,181.78 | |
| Total non-current asset | 1,117,706,403.38 | 1,595,650,602.01 |
| Total assets | 3,051,547,885.42 | 3,219,261,720.55 |
| Current liabilities: | ||
| Short-term loans | 755,480,134.11 | 881,075,378.48 |
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | ||
| Derivative financial liability | ||
| Note payable | ||
| Account payable | 13,361,192.95 | 19,871,102.41 |
| Accounts received in advance | ||
| Contractual liability | ||
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 41,045,198.56 | 55,208,432.53 |
| Taxes payable | 11,824,882.40 | 21,769,273.77 |
| Other account payable | 34,163,258.96 | 43,691,472.06 |
| Including: Interest payable | ||
| Dividend payable | ||
| Commission charge and commission payable | ||
| Reinsurance payable |
深圳南山热电股份有限公司2020年半年度财务报告
| Liability held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | ||
| Total current liabilities | 855,874,666.98 | 1,021,615,659.25 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | ||
| Long-term wages payable | ||
| Accrual liability | 26,646,056.28 | 26,646,056.28 |
| Deferred income | 96,957,757.04 | 108,507,683.52 |
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 123,603,813.32 | 135,153,739.80 |
| Total liabilities | 979,478,480.30 | 1,156,769,399.05 |
| Owner’s equity: | ||
| Share capital | 602,762,596.00 | 602,762,596.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 362,770,922.10 | 362,770,922.10 |
| Less: Inventory shares | ||
| Other comprehensive income | -2,500,000.00 | -2,500,000.00 |
| Reasonable reserve | ||
| Surplus public reserve | 332,908,397.60 | 332,908,397.60 |
| Provision of general risk | ||
| Retained profit | 746,816,139.04 | 706,830,892.54 |
| Total owner’ s equity attributable to parent company | 2,042,758,054.74 | 2,002,772,808.24 |
| Minority interests | 29,311,350.38 | 59,719,513.26 |
| Total owner’ s equity | 2,072,069,405.12 | 2,062,492,321.50 |
| Total liabilities and owner’ s equity | 3,051,547,885.42 | 3,219,261,720.55 |
Legal Representative: Li XinweiGeneral Manager: Chen YuhuiCFO: Dai XijiPerson in charge of financial dept.: Wang YiTabulator: Liu Yan
深圳南山热电股份有限公司2020年半年度财务报告
2. Balance Sheet of Parent Company
In RMB
| Item | 2020-6-30 | 2019-12-31 |
| Current assets: | ||
| Monetary funds | 1,012,488,905.86 | 632,948,706.11 |
| Trading financial assets | ||
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | 61,629,518.43 | 31,824,693.69 |
| Receivable financing | ||
| Accounts paid in advance | 27,966,084.58 | 46,152,700.57 |
| Other account receivable | 660,835,522.34 | 873,861,071.55 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Inventories | 97,843,620.07 | 101,728,367.43 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | 485,147,244.31 | 438,613,774.49 |
| Total current assets | 2,345,910,895.59 | 2,125,129,313.84 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investments | 228,918,765.00 | 303,341,165.00 |
| Investment in other equity instrument | 60,615,000.00 | 60,615,000.00 |
| Other non-current financial assets | ||
| Investment real estate | ||
| Fixed assets | 315,117,782.13 | 321,395,526.04 |
| Construction in progress | 2,355,233.61 | 1,949,450.23 |
| Productive biological assets | ||
| Oil and natural gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 229,435.21 | 404,104.06 |
| Research and development costs | ||
| Goodwill | ||
| Long-term deferred expenses | 709,967.63 | 790,841.39 |
| Deferred income tax assets | ||
| Other non-current assets | ||
| Total non-current assets | 607,946,183.58 | 688,496,086.72 |
| Total assets | 2,953,857,079.17 | 2,813,625,400.56 |
| Current liabilities | ||
| Short-term borrowings | 755,480,134.11 | 580,640,114.59 |
| Trading financial liability |
深圳南山热电股份有限公司2020年半年度财务报告
| Derivative financial liability | ||
| Notes payable | ||
| Account payable | 1,756,794.04 | 864,016.74 |
| Accounts received in advance | ||
| Contractual liability | ||
| Wage payable | 26,769,914.84 | 33,840,544.53 |
| Taxes payable | 1,279,402.89 | 718,630.17 |
| Other accounts payable | 193,871,721.75 | 203,332,331.14 |
| Including: Interest payable | ||
| Dividend payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | ||
| Total current liabilities | 979,157,967.63 | 819,395,637.17 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | ||
| Long term employee compensation payable | ||
| Accrued liabilities | ||
| Deferred income | 56,533,398.56 | 58,261,356.20 |
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 56,533,398.56 | 58,261,356.20 |
| Total liabilities | 1,035,691,366.19 | 877,656,993.37 |
| Owners’ equity: | ||
| Share capital | 602,762,596.00 | 602,762,596.00 |
| Other equity instrument | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 289,963,039.70 | 289,963,039.70 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Special reserve | ||
| Surplus reserve | 332,908,397.60 | 332,908,397.60 |
| Retained profit | 692,531,679.68 | 710,334,373.89 |
| Total owner’s equity | 1,918,165,712.98 | 1,935,968,407.19 |
| Total liabilities and owner’s equity | 2,953,857,079.17 | 2,813,625,400.56 |
Legal Representative: Li Xinwei
深圳南山热电股份有限公司2020年半年度财务报告
General Manager: Chen YuhuiCFO: Dai XijiPerson in charge of financial dept.: Wang YiTabulator: Liu Yan
深圳南山热电股份有限公司2020年半年度财务报告
3. Consolidated Profit Statement
In RMB
| Item | 2020 semi-annual | 2019 semi-annual |
| I. Total operating income | 518,150,606.21 | 408,124,616.38 |
| Including: Operating income | 518,150,606.21 | 408,124,616.38 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 508,157,542.84 | 443,959,972.56 |
| Including: Operating cost | 453,109,436.14 | 382,997,137.69 |
| Interest expense | ||
| Commission charge and commission expense | ||
| Cash surrender value | ||
| Net amount of expense of compensation | ||
| Net amount of withdrawal of insurance contract reserve | ||
| Bonus expense of guarantee slip | ||
| Reinsurance expense | ||
| Tax and extras | 4,419,108.69 | 2,825,433.43 |
| Sales expense | 2,527,403.66 | 2,566,269.52 |
| Administrative expense | 43,036,872.15 | 44,931,864.50 |
| R&D expense | ||
| Financial expense | 5,064,722.20 | 10,639,267.42 |
| Including: Interest expenses | 18,187,759.13 | 23,542,971.21 |
| Interest income | -13,142,285.32 | -13,189,605.67 |
| Add: other income | 8,755,536.55 | 4,962,155.46 |
| Investment income (Loss is listed with “-”) | 33,291,259.12 | -677,552.37 |
| Including: Investment income on affiliated company and joint venture | -243,622.43 | -677,552.37 |
| The termination of income recognition for financial assets measured by amortized cost(Loss is listed with “-”) | ||
| Exchange income (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Income from change of fair value (Loss is listed with “-”) | ||
| Loss of credit impairment (Loss is listed with “-”) | ||
| Losses of devaluation of asset (Loss is listed with “-”) | ||
| Income from assets disposal (Loss is listed with “-”) | 828,535.66 | -417,926.32 |
| III. Operating profit (Loss is listed with “-”) | 52,868,394.70 | -31,968,679.41 |
深圳南山热电股份有限公司2020年半年度财务报告
| Add: Non-operating income | 4,753.84 | 103,166.50 |
| Less: Non-operating expense | 11,110.00 | 46,124.97 |
| IV. Total profit (Loss is listed with “-”) | 52,862,038.54 | -31,911,637.88 |
| Less: Income tax expense | 610,366.52 | 1,157,865.76 |
| V. Net profit (Net loss is listed with “-”) | 52,251,672.02 | -33,069,503.64 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with ‘-”) | 52,251,672.02 | -33,069,503.64 |
| 2.termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to owner’s of parent company | 52,040,498.42 | -25,283,190.82 |
| 2.Minority shareholders’ gains and losses | 211,173.60 | -7,786,312.82 |
| VI. Net after-tax of other comprehensive income | ||
| Net after-tax of other comprehensive income attributable to owners of parent company | ||
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders |
深圳南山热电股份有限公司2020年半年度财务报告
| VII. Total comprehensive income | 52,251,672.02 | -33,069,503.64 |
| Total comprehensive income attributable to owners of parent Company | 52,040,498.42 | -25,283,190.82 |
| Total comprehensive income attributable to minority shareholders | 211,173.60 | -7,786,312.82 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.09 | -0.04 |
| (ii) Diluted earnings per share | 0.09 | -0.04 |
Legal Representative: Li XinweiGeneral Manager: Chen YuhuiCFO: Dai XijiPerson in charge of financial dept.: Wang YiTabulator: Liu Yan
深圳南山热电股份有限公司2020年半年度财务报告
4. Profit Statement of Parent Company
In RMB
| Item | 2020 semi-annual | 2019 semi-annual |
| I. Operating income | 145,767,015.34 | 165,514,051.23 |
| Less: Operating cost | 137,936,919.09 | 172,328,135.53 |
| Taxes and surcharge | 1,043,521.78 | 1,087,030.23 |
| Sales expenses | ||
| Administration expenses | 20,573,683.41 | 24,673,677.93 |
| R&D expenses | ||
| Financial expenses | -15,583,586.02 | -14,339,507.18 |
| Including: interest expenses | 14,003,693.17 | 22,030,984.10 |
| Interest income | -29,739,688.14 | -36,594,234.59 |
| Add: other income | 6,061,054.97 | 1,973,036.55 |
| Investment income (Loss is listed with “-”) | -14,432,400.00 | |
| Including: Investment income on affiliated Company and joint venture | ||
| The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Changing income of fair value (Loss is listed with “-”) | ||
| Loss of credit impairment (Loss is listed with “-”) | ||
| Losses of devaluation of asset (Loss is listed with “-”) | ||
| Income on disposal of assets (Loss is listed with “-”) | 828,535.66 | -231,373.37 |
| II. Operating profit (Loss is listed with “-”) | -5,746,332.29 | -16,493,622.10 |
| Add: Non-operating income | ||
| Less: Non-operating expense | 1,110.00 | |
| III. Total Profit (Loss is listed with “-”) | -5,747,442.29 | -16,493,622.10 |
| Less: Income tax | -2,246,824.86 | |
| IV. Net profit (Net loss is listed with “-”) | -5,747,442.29 | -14,246,797.24 |
| (i)continuous operating net profit (net loss listed with ‘-”) | -5,747,442.29 | -14,246,797.24 |
| (ii) termination of net profit (net loss listed with ‘-”) | ||
| V. Net after-tax of other comprehensive income | ||
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot |
深圳南山热电股份有限公司2020年半年度财务报告
| be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (II) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| VI. Total comprehensive income | -5,747,442.29 | -14,246,797.24 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | ||
| (ii) Diluted earnings per share |
Legal Representative: Li XinweiGeneral Manager: Chen YuhuiCFO: Dai XijiPerson in charge of financial dept.: Wang YiTabulator: Liu Yan
深圳南山热电股份有限公司2020年半年度财务报告
5. Consolidated Cash Flow Statement
In RMB
| Item | 2020 semi-annual | 2019 semi-annual |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 546,650,431.87 | 428,898,326.58 |
| Net increase of customer deposit and interbank deposit | ||
| Net increase of loan from central bank | ||
| Cash received from original insurance contract fee | ||
| Net cash received from reinsurance business | ||
| Net increase of insured savings and investment | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of capital borrowed | ||
| Net increase of returned business capital | ||
| Net cash received by agents in sale and purchase of securities | ||
| Write-back of tax received | 825,437.15 | 1,346,224.12 |
| Other cash received concerning operating activities | 22,506,294.89 | 70,033,512.82 |
| Subtotal of cash inflow arising from operating activities | 569,982,163.91 | 500,278,063.52 |
| Cash paid for purchasing commodities and receiving labor service | 375,599,637.22 | 333,819,040.13 |
| Net increase of customer loans and advances | ||
| Net increase of deposits in central bank and interbank | ||
| Cash paid for original insurance contract compensation | ||
| Net increase of capital lent | ||
| Cash paid for interest, commission charge and commission | ||
| Cash paid for bonus of guarantee slip | ||
| Cash paid to/for staff and workers | 75,085,663.24 | 66,444,597.80 |
| Taxes paid | 28,204,829.24 | 17,292,868.12 |
| Other cash paid concerning operating activities | 21,155,472.75 | 26,504,180.58 |
| Subtotal of cash outflow arising from operating activities | 500,045,602.45 | 444,060,686.63 |
| Net cash flows arising from operating activities | 69,936,561.46 | 56,217,376.89 |
| II. Cash flows arising from investing |
深圳南山热电股份有限公司2020年半年度财务报告
| activities: | ||
| Cash received from recovering investment | ||
| Cash received from investment income | 254,147.93 | |
| Net cash received from disposal of fixed, intangible and other long-term assets | 1,989,560.00 | |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 800,000.00 | |
| Subtotal of cash inflow from investing activities | 1,054,147.93 | 1,989,560.00 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 5,447,277.81 | 22,830,724.69 |
| Cash paid for investment | 53,434,321.12 | |
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 12,577,163.02 | |
| Subtotal of cash outflow from investing activities | 71,458,761.95 | 22,830,724.69 |
| Net cash flows arising from investing activities | -70,404,614.02 | -20,841,164.69 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | ||
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | ||
| Cash received from loans | 844,233,285.00 | 730,000,000.00 |
| Other cash received concerning financing activities | 170,000,000.00 | 7,303,338.86 |
| Subtotal of cash inflow from financing activities | 1,014,233,285.00 | 737,303,338.86 |
| Cash paid for settling debts | 670,000,000.00 | 634,000,000.00 |
| Cash paid for dividend and profit distributing or interest paying | 30,452,445.36 | 23,755,459.28 |
| Including: Dividend and profit of minority shareholder paid by subsidiaries | ||
| Other cash paid concerning financing activities | ||
| Subtotal of cash outflow from financing activities | 700,452,445.36 | 657,755,459.28 |
| Net cash flows arising from financing activities | 313,780,839.64 | 79,547,879.58 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 101,178.77 | 3,136.95 |
| V. Net increase of cash and cash equivalents | 313,413,965.85 | 114,927,228.73 |
深圳南山热电股份有限公司2020年半年度财务报告
| Add: Balance of cash and cash equivalents at the period -begin | 771,490,000.96 | 914,956,611.70 |
| VI. Balance of cash and cash equivalents at the period -end | 1,084,903,966.81 | 1,029,883,840.43 |
Legal Representative: Li XinweiGeneral Manager: Chen YuhuiCFO: Dai XijiPerson in charge of financial dept.: Wang YiTabulator: Liu Yan
深圳南山热电股份有限公司2020年半年度财务报告
6. Cash Flow Statement of Parent Company
In RMB
| Item | 2020 semi-annual | 2019 semi-annual |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 175,122,223.90 | 179,341,203.60 |
| Write-back of tax received | 171,207.01 | |
| Other cash received concerning operating activities | 255,646,269.06 | 472,584,897.62 |
| Subtotal of cash inflow arising from operating activities | 430,939,699.97 | 651,926,101.22 |
| Cash paid for purchasing commodities and receiving labor service | 117,118,694.51 | 166,269,024.94 |
| Cash paid to/for staff and workers | 47,301,346.15 | 37,380,527.03 |
| Taxes paid | 222,887.49 | 9,889,753.49 |
| Other cash paid concerning operating activities | 275,229,334.87 | 180,626,305.78 |
| Subtotal of cash outflow arising from operating activities | 439,872,263.02 | 394,165,611.24 |
| Net cash flows arising from operating activities | -8,932,563.05 | 257,760,489.98 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 59,990,000.00 | |
| Cash received from investment income | 254,147.93 | |
| Net cash received from disposal of fixed, intangible and other long-term assets | 1,794,800.00 | |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 230,318,617.98 | |
| Subtotal of cash inflow from investing activities | 290,562,765.91 | 1,794,800.00 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 1,915,256.43 | 15,789,275.99 |
| Cash paid for investment | 53,434,321.12 | |
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | ||
| Subtotal of cash outflow from investing activities | 55,349,577.55 | 15,789,275.99 |
| Net cash flows arising from investing activities | 235,213,188.36 | -13,994,475.99 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing |
深圳南山热电股份有限公司2020年半年度财务报告
| investment | ||
| Cash received from loans | 544,233,285.00 | 430,000,000.00 |
| Other cash received concerning financing activities | 5,000,000.00 | |
| Subtotal of cash inflow from financing activities | 549,233,285.00 | 430,000,000.00 |
| Cash paid for settling debts | 370,000,000.00 | 530,000,000.00 |
| Cash paid for dividend and profit distributing or interest paying | 25,373,959.23 | 20,895,394.22 |
| Other cash paid concerning financing activities | 600,600.00 | |
| Subtotal of cash outflow from financing activities | 395,974,559.23 | 550,895,394.22 |
| Net cash flows arising from financing activities | 153,258,725.77 | -120,895,394.22 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 848.67 | 391.81 |
| V. Net increase of cash and cash equivalents | 379,540,199.75 | 122,871,011.58 |
| Add: Balance of cash and cash equivalents at the period -begin | 632,948,706.11 | 766,041,463.01 |
| VI. Balance of cash and cash equivalents at the period -end | 1,012,488,905.86 | 888,912,474.59 |
Legal Representative: Li XinweiGeneral Manager: Chen YuhuiCFO: Dai XijiPerson in charge of financial dept.: Wang YiTabulator: Liu Yan
深圳南山热电股份有限公司2020年半年度财务报告
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
| Item | 2020 semi-annual | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. Balance at the end of the last year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 706,830,892.54 | 2,002,772,808.24 | 59,719,513.26 | 2,062,492,321.50 | |||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. Balance at the beginning of this year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 706,830,892.54 | 2,002,772,808.24 | 59,719,513.26 | 2,062,492,321.50 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | 39,985,246.50 | 39,985,246.50 | -30,408,162.88 | 9,577,083.62 | |||||||||||
| (i) Total comprehensive income | 52,040,498.42 | 52,040,498.42 | 211,173.60 | 52,251,672.02 | |||||||||||
| (ii) Owners’ devoted and decreased capital | -30,619,336.48 | -30,619,336.48 | |||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
深圳南山热电股份有限公司2020年半年度财务报告
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | -30,619,336.48 | -30,619,336.48 | |||||||||||||
| (III) Profit distribution | -12,055,251.92 | -12,055,251.92 | -12,055,251.92 | ||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | -12,055,251.92 | -12,055,251.92 | -12,055,251.92 | ||||||||||||
| 4. Other | |||||||||||||||
| (IV) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4．Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5．Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (V) Reasonable reserve | |||||||||||||||
| 1. Withdrawal in the report |
深圳南山热电股份有限公司2020年半年度财务报告
| period | |||||||||||||||
| 2. Usage in the report period | |||||||||||||||
| (VI)Others | |||||||||||||||
| IV. Balance at the end of the report period | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 746,816,139.04 | 2,042,758,054.74 | 29,311,350.38 | 2,072,069,405.12 |
Last Period
In RMB
| Item | 2019 semi-annual | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. Balance at the end of the last year | 602,762,596.00 | 362,770,922.10 | 332,908,397.60 | 679,429,935.81 | 1,977,871,851.51 | 58,927,527.37 | 2,036,799,378.88 | ||||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. Balance at the beginning of this year | 602,762,596.00 | 362,770,922.10 | 332,908,397.60 | 679,429,935.81 | 1,977,871,851.51 | 58,927,527.37 | 2,036,799,378.88 | ||||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | -25,283,190.82 | -25,283,190.82 | -7,786,312.82 | -33,069,503.64 | |||||||||||
| (i) Total comprehensive income | -25,283,190.82 | -25,283,190.82 | -7,786,312.82 | -33,069,503.64 | |||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||||
| 1.Common shares invested | |||||||||||||||
深圳南山热电股份有限公司2020年半年度财务报告
| by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | |||||||||||||||
| (III) Profit distribution | |||||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||||
| 4. Other | |||||||||||||||
| (IV) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4．Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5．Carry-over retained earnings from other comprehensive |
深圳南山热电股份有限公司2020年半年度财务报告
| income | |||||||||||||||
| 6. Other | |||||||||||||||
| (V) Reasonable reserve | |||||||||||||||
| 1. Withdrawal in the report period | |||||||||||||||
| 2. Usage in the report period | |||||||||||||||
| (VI)Others | |||||||||||||||
| IV. Balance at the end of the report period | 602,762,596.00 | 362,770,922.10 | 332,908,397.60 | 654,146,744.99 | 1,952,588,660.69 | 51,141,214.55 | 2,003,729,875.24 |
Legal Representative: Li XinweiGeneral Manager: Chen YuhuiCFO: Dai XijiPerson in charge of financial dept.: Wang YiTabulator: Liu Yan
深圳南山热电股份有限公司2020年半年度财务报告
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
| Item | 2020 semi-annual | |||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. Balance at the end of the last year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 710,334,373.89 | 1,935,968,407.19 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. Balance at the beginning of this year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 710,334,373.89 | 1,935,968,407.19 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | -17,802,694.21 | -17,802,694.21 | ||||||||||
| (i) Total comprehensive income | -5,747,442.29 | -5,747,442.29 | ||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (III) Profit distribution | -12,055,251.92 | -12,055,251.92 | ||||||||||
| 1. Withdrawal of | ||||||||||||
深圳南山热电股份有限公司2020年半年度财务报告
| surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | -12,055,251.92 | -12,055,251.92 | ||||||||||
| 3. Other | ||||||||||||
| (IV) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4．Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5．Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (V) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period | ||||||||||||
| (VI)Others | ||||||||||||
| IV. Balance at the end of the report period | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 692,531,679.68 | 1,918,165,712.98 |
Last period
In RMB
| Item | 2019 semi-annual | |||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. Balance at the end of the last | 602,762,596. | 289,963,039.70 | 332,908,397.60 | 709,581,350.64 | 1,935,215,383.94 | |||||||
深圳南山热电股份有限公司2020年半年度财务报告
| year | 00 | |||||||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. Balance at the beginning of this year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 709,581,350.64 | 1,935,215,383.94 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | -14,246,797.24 | -14,246,797.24 | ||||||||||
| (i) Total comprehensive income | -14,246,797.24 | -14,246,797.24 | ||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (III) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | ||||||||||||
| 3. Other | ||||||||||||
| (IV) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital |
深圳南山热电股份有限公司2020年半年度财务报告
| reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4．Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5．Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (V) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period | ||||||||||||
| (VI)Others | ||||||||||||
| IV. Balance at the end of the report period | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 695,334,553.40 | 1,920,968,586.70 |
Legal Representative: Li XinweiGeneral Manager: Chen YuhuiCFO: Dai XijiPerson in charge of financial dept.: Wang YiTabulator: Liu Yan
深圳南山热电股份有限公司2020年半年度财务报告
Shenzhen Nanshan Power Co., Ltd.Notes to financial statement of Semi-Annual 2020I. Company Profile
(1) Profile
Shenzhen Nanshan Power Co., Ltd (hereinafter, the “Company”) was reorganized to be a joint-stock enterprisefrom a foreign investment enterprise on 25 November 1993, upon the approval of General Office of ShenzhenMunicipal Government with Document Shen Fu Ban Fu [1993] No.897.
After approved by Document Shen Zhu Ban Fu [1993] No.179 issued by Shenzhen Securities Regulatory Office,on 3 January 1994, the Company offered 40,000,000 RMB common shares and 37,000,000 domestically listedforeign shares in and out of China. And the RMB common shares (A-stock) and domestically listed foreign listedshares (B-stock) were listed in Shenzhen Stock Exchange successively on July 1, 1994 and Nov. 28, 1994.
Headquarter of the Company located on 16/F, 17/F, Han Tang Building, OCT, Nanshan District, Shenzhen City,Guangdong Province, P.R.C.
The financial statement has approved for report by the Board on 12 August 2020.
(2) Scope of consolidate financial statement
Subsidiary included in the consolidate financial statement of the Company up to 30 June 2020 are as:
| Subsidiary |
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd.（“Zhongshan Electric Power”） |
| Shenzhen Shennandian Turbine Engineering Technology Co., Ltd.（“Engineering Company”） |
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd.（“Environment Protection Company”） |
| Shenzhen Server Petrochemical Supplying Co., Ltd（“Shenzhen Server”） |
| Shenzhen New Power Industrial Co., Ltd.（“New Power”） |
| Shen Nan Energy (Singapore) Co., Ltd.（“Singapore Company”） |
| Hong Kong Syndisome Co., Ltd.（“Syndisome ”） |
| Zhongshan Shen Nan Dian Storage Co., Ltd.（“Shen Storage”） |
Scope of the consolidate financial statement and its changes found more in the VI. Change of Consolidate Scopeand VII. Equity in other entity carry in the Note
II. Preparation basis of Financial statement
(1) Preparation basis
深圳南山热电股份有限公司2020年半年度财务报告
The Company’s financial statements have been prepared based on the going concern and the actual transactionsand events. In accordance with the Accounting Standards for Business Enterprises- Basic Norms and everyspecific accounting rules, the application guidelines of the Accounting Standards for Business Enterprises,interpretations and other related rules of the Accounting Standards for Business Enterprises (hereinafter referred toas “ASBEs”), and the disclosure requirements of the “Regulation on the Preparation of Information Disclosures ofCompanies Issuing Public Shares, No. 15- General Requirements for Financial Reports” of China SecuritiesRegulatory Commission.
(2)Going concern
The Company is capable of going concern for 12 months from the end of the reporting period, and there are nomajor issues affecting the ability to go concern.
III. Major Accounting Policies and EstimationThe Company together with its subsidiaries is mainly engaged in businesses as production of power and heat,power plant construction, fuel trading, engineering consulting and and sludge drying.According to the actualproduction and operation characteristics, the Company and its subsidiaries establish certain specific accountingpolicies and accounting estimates in respect of their transactions and matters such as sales revenue recognitionpursuant to relevant business accounting principles. Details are set out in (16) Fixed assets and the (25) Revenueunder Note III. For explanation on material accounting judgment and estimate issued by the management, pleaserefer to (32) Major accounting judgment and estimation under Note III.
(1) Statement on observation of Accounting Standard for Business Enterprises
The Financial Statements are up to requirements of Accounting Standards for Business Enterprises, and reflect thefinancial status, operation outcomes and cash flows of the Company in reporting period in truthfulness andcompleteness.
(2) Accounting period
Accounting period of the Company divide into annual and medium-term, and the medium-term is the reportingperiod that shorter than one completed accounting year. The Company’s accounting year is Gregorian calendaryear, namely from 1
st January to 31
st
December.
(3) Operating cycle
The operating cycle of the Company is 12 months.
(4) Book-keeping standard currency
Book-keeping standard of the Company is RMB(CNY)
(5) Accounting treatment on enterprise combine under the same control and under thedifferent control
Enterprise combination under the same control: The assets and liabilities obtained by the Company in enterprisecombination are measured at the book value of the consolidated financial statements of the ultimate controlling
深圳南山热电股份有限公司2020年半年度财务报告
party in accordance with the assets and liabilities of the combined party on the date of combination. The differencebetween the carrying amount of the net assets obtained and the carrying amount of the consideration paid for thecombination (or the aggregate nominal value of shares issued as consideration) is charged to the share capitalpremium in capital reserve. If the share capital premium in capital reserve is not sufficient to absorb the difference,any excess shall be adjusted against retained earnings.
Enterprise combinations not under the same control: The Company's assets paid and liabilities incurred or assumedon the date of purchase as a consideration of enterprise combination are measured at fair value, and the differencebetween the fair value and its book value is included in the current profit and loss. Where the cost of a businesscombination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the differenceis recognized as goodwill; where the cost of a business combination less than the acquirer’s interest in the fairvalue of the acquiree’s identifiable net assets, reckoned into current gains/losses after double-check.
The intermediary fees, such as auditing, legal services, consultation and other directly relevant incurred in themerger of enterprises shall be reckon into the current gains/losses when incurred; the transaction costs of issuingequity securities for the purpose of enterprise combination should be charge-off.
(6) Preparation methods for consolidated statement
1.Consolidate scope
Scope of the consolidate financial statement is determined on a control basis, all subsidiaries (including the part ofthe enterprise under control of the investee that can be divided) are included in the consolidated financialstatement.
2. Consolidate procedures
Based on the financial statements of itself and its subsidiaries, the Company compiles the consolidated financialstatements in line with other relevant information. The Company compiles consolidated financial statements,considers the entire enterprise group as an accounting entity, and reflects the overall financial position, operatingresults and cash flow of the enterprise group in accordance with the relevant accounting standards' recognition,measurement and presentation requirements and in accordance with unified accounting policies.
The accounting policies and accounting periods adopted by all subsidiaries included in the consolidation scope ofthe consolidated financial statements are consistent with the Company. If the accounting policies and accountingperiods adopted by the subsidiaries are inconsistent with the Company, when preparing the consolidated financialstatements, make necessary adjustments according to the accounting policies and accounting periods of theCompany. For a subsidiary acquired through a business combination not under the same control, its financialstatements are adjusted based on the fair value of the identifiable net assets at the acquisition date. For a subsidiaryacquired through a business combination under the same control, its financial statements are adjusted based on thebook value of its assets and liabilities (including the goodwill formed by the ultimate controlling party's acquisitionof the subsidiary) in the ultimate controlling party's financial statements.
The subsidiary's owner's equity, current net profit or loss and the share of current comprehensive income belongingto minority shareholders are separately listed under the owner's equity item in the consolidated balance sheet,under the net profit item in the consolidated income statement and under the total comprehensive income item. If
深圳南山热电股份有限公司2020年半年度财务报告
the current loss shared by the minority shareholders of a subsidiary exceeds the minority shareholder' share in theowner's equity of the subsidiary at the beginning of the period, the balance shall offset against the minorityshareholders' equity.
(1) Increase subsidiaries or businesses
During the reporting period, if a subsidiary or business is added due to a business combination under the samecontrol, adjust the opening balance of the consolidated balance sheet; incorporate the income, expenses, and profitsof the subsidiary or business combination from the beginning of the current period to the end of the reportingperiod into the consolidated income statement; incorporate the cash flows of the subsidiary or businesscombination from the beginning of the current period to the end of the reporting period into the consolidated cashflow statement, and adjust the relevant items of the comparative statement as if the consolidated reporting entityhad been existing since the time when the ultimate controlling party began controlling.
Where it is possible to exercise control over an investee under the same control due to additional investment, allparties participating in the combination are deemed to have adjusted in their current state when the ultimatecontrolling party commenced control. The equity investment held before the control of the combined party isobtained, the relevant profit or loss and other comprehensive income that have been confirmed between the date ofacquisition of the original equity and the date on which the combining party and the combined party are under thesame control until the combining date, as well as other changes in net assets respectively write down the retainedearnings at the beginning of period or the current profits and losses in the comparative statements.
During the reporting period, if a subsidiary or business is added due to a business combination not under the samecontrol, the opening balance of the consolidated balance sheet period will not be adjusted; the income, expenses,and profits of the subsidiary or business from the acquisition date to the end of the reporting period will beincluded in the consolidated income statement; the cash flows of the subsidiary or business from the acquisitiondate to the end of the reporting period are included in the consolidated statement of cash flow.
For reasons such as additional investments that can control an investee not under the same control, the Companyremeasures the equity of the acquiree held before the purchase date according to the fair value of the equity on thepurchase date, and the balance between the fair value and its book value is included in the current investmentincome. If the equity of the acquiree held before the purchase date involves other comprehensive income under theequity method and other changes in owner's equity other than net profit or loss, other comprehensive income andprofit distribution, other comprehensive income and other changes in owner's equity related to it shall be convertedinto the investment income of the current period on the date of purchase, except for other comprehensive incomearising from the re-measurement of the net liabilities or changes in net assets of the defined benefit plan of theinvestee.
(2) Disposal of subsidiaries or businesses
①General treatment method
During the reporting period, when the Company disposes of a subsidiary or business, the income, expenses andprofits of the subsidiary or business from the beginning of the period to the disposal date are included in theconsolidated income statement, while the cash flow of the subsidiary or the business from the beginning of theperiod to the disposal date is included in the consolidated statement of cash flow.
深圳南山热电股份有限公司2020年半年度财务报告
For control rights loss in original subsidiary for partial equity investment disposal or other reasons, the remainedequity should re-measured based on the fair value at date of control losses. The difference between the net assets oforiginal subsidiary share by proportion held that sustainable calculated since purchased date (or combination date)and sum of consideration obtained by equity disposal and fair value of remain equity, reckoned into the currentinvestment income of control rights loss. Other comprehensive income related to the original subsidiary's equityinvestment or other changes in owner's equity other than net profit and loss, other comprehensive income andprofit distribution will be converted to current investment income when the control is lost, except for othercomprehensive income arising from the remeasurement of the net liabilities or changes in net assets of the definedbenefit plan of the investee.
If other investors’ capital increases in the subsidiary results in a decline in the Company's shareholding ratio andthus loss of control power, accounting shall be conducted in accordance with the above principles.
② Dispose subsidiary step-by-step
When the Company disposes of equity investment in a subsidiary by a stage-up approach with several transactionsuntil the control over the subsidiary is lost, these several transactions related to the disposal of equity investment ina subsidiary are accounted for as transactions in a basket when the terms, conditions and economic impacts ofthese several transactions meet the following one or more conditions:
i. these transactions are entered into at the same time or after considering their impacts on each other;ii. these transactions as a whole can reach complete business results;iii the occurrence of a transaction depends on at least the occurrence of an other transaction;iv.an individual transaction is not deemed as economic, but is deemed as economic when considered with othertransactions.
When several transactions related to the disposal of equity investment in a subsidiary until the control over thesubsidiary is lost fall within transactions in a basket, each of which is accounted for as disposal of a subsidiarywith a transaction until the control over a subsidiary is lost; however, the different between the amount of disposalprior to the loss of control and the net assets of a subsidiary attributable to the disposal investment shall berecognized as other comprehensive income in consolidated financial statements and transferred to profit or loss forthe period at the time when the control is lost.
If the transactions that dispose of the equity investment in the subsidiary until the loss of control do not belong tothe package transaction, before the loss of control, the relevant policies for partial disposal of the equity investmentin the subsidiary shall be accounted for without losing control. When the control right is lost, the accountingtreatment shall be carried out according to the general treatment method for disposing of the subsidiary.
(3) Purchase of minority shares in subsidiaries
The difference between the Company's newly acquired long-term equity investment due to the purchase ofminority shares and the net assets share calculated continuously by the subsidiary from the date of purchase (ormerger date) in accordance with the calculation of the newly increased shareholding ratio, adjust the equitypremium in the capital reserve in the consolidated balance sheet, if the equity premium in the capital reserve isinsufficient to offset, adjust the retained earnings.
深圳南山热电股份有限公司2020年半年度财务报告
(4) Partial disposal of equity investment in subsidiaries without losing control
The difference between the disposal cost obtained as a result of partial disposal of long-term equity investment in asubsidiary without losing control and the net assets share calculated continuously by the subsidiary from the dateof purchase or merger corresponding to the disposal of the long-term equity investment, adjust the equity premiumin the capital reserve in the consolidated balance sheet, if the equity premium in the capital reserve is insufficientto offset, adjust the retained earnings.
(7) Classification of joint arrangement and accounting treatment
Joint arrangement is divided into joint operation and joint venture.As a joint party of the joint arrangement, it is a joint operation when the Company enjoys assets related to thearrangement and bears the liabilities related to the arrangement.The company confirms the following items related to the share of interests in its joint operations, and inaccordance with the provisions of the relevant accounting standards for accounting treatment:
(1) Recognize the assets held solely by the Company, and recognize assets held jointly by the Company inappropriation to the share of the Company;
(2) Recognize the obligations assumed solely by the Company, and recognize obligations assumed jointly by theCompany in appropriation to the share of the Company;
(3) Recognize revenue from disposal of the share of joint operations of the Company;
(4) Recognize fees solely occurred by Company;
(5) Recognize fees from joint operations in appropriation to the share of the Company.
Accounting policy for the joint venture investment found more in (14) Long-term equity investment under NoteIII.
(8) Determination criteria of cash and cash equivalent
While preparing the cash flow statement, the stock cash and savings available for payment at any time arerecognized as cash. The investments meets the follow four conditions at the same time are recognized as cashequivalent, that is short-term (normally fall due within three months from the date of acquisition) and highly liquidinvestments held the Group which are readily convertible into known amounts of cash and which are subject toinsignificant risk of value change.
(9) Foreign currency business and foreign currency statement translation
1.Foreign currency business
Foreign currency business uses the spot exchange rate on the transaction date as the conversion rate to convertforeign currency amounts into RMB for accounting.
The balance of foreign currency monetary items at the balance sheet date is converted at the spot exchange rate onthe balance sheet date, the resulting exchange difference is included in current profit and loss, except that theexchange difference arising from foreign currency special borrowings related to the acquisition or construction ofassets eligible for capitalization is disposed with the principle of borrowing costs capitalization.
2. Foreign currency statement translation
Assets and liabilities in the balance sheet are converted at the spot exchange rate on the balance sheet date; the
深圳南山热电股份有限公司2020年半年度财务报告
owners' equity items are converted at the spot exchange rate at the time of occurrence, except for the "undistributedprofit" item. The income and expense items in the income statement are converted at the spot exchange rate on thetransaction date.
When disposing of an overseas operation, the translation difference in the foreign currency financial statementsrelated to the overseas operation is transferred from the owner's equity item to the disposal of current profit or loss.
(10) Financial instrument
Financial instrument consist of financial assets, financial liability and equity instrument.
1.Classification of financial instrument
Based on the Company's business model for managing financial assets and the contractual cash flow characteristicsof financial assets, financial assets are classified as the financial assets measured at amortized cost, the financialassets (debt instruments) measured at fair value and whose changes are included in other comprehensive incomeand the financial assets measured at fair value and whose changes are included in current profit and loss at initialrecognition.
Business model to collect the contractual cash flow, and the contractual cash flow is only the payment of theprincipal and the interest based on the outstanding principal amount, is classified as a financial asset measured atamortized cost; business model to collect the contractual cash flow and sell the financial asset, and the contractualcash flow is only the payment of principal and the interest based on the outstanding principal amount, is classifiedas a financial asset measured at fair value and whose changes are included in other comprehensive income (debtinstruments); other financial assets other than these are classified as financial assets measured at fair value andwhose changes are included in the current profit and loss.
For a non-tradable equity instrument investment, the Company determines at the time of initial recognitionwhether to designate it as a financial asset (equity instrument) measured at fair value and whose changes areincluded in other comprehensive income. At the time of initial recognition, in order to eliminate or significantlyreduce accounting mismatches, financial assets can be designated as financial assets that are measured at fair valueand whose changes are included in the current profit and loss.
At the time of initial recognition, financial liabilities are classified into financial liabilities that are measured at fairvalue and whose changes are included in the current profit and loss and financial liabilities that are measured atamortized cost.
A financial liability that meets one of the following conditions can be designated as a financial liability measuredat fair value and whose changes are included in current profit and loss at initial measurement:
1) This designation can eliminate or significantly reduce accounting mismatches.
2) In accordance with the corporate risk management or investment strategy stated in formal written documents,make management and performance evaluation to financial liability portfolios or financial assets and financialliability portfolios based on fair value, and report to the key management personnel within the enterprise based onthis.
3) The financial liability includes embedded derivatives that need to be split separately.
深圳南山热电股份有限公司2020年半年度财务报告
2. Recognition basis and measurement method of financial instruments
(1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include bills receivable, accounts receivable, other receivables,long-term receivables, debt investment, etc., which are initially measured at fair value, and related transaction costsare included in the initially recognized amount; accounts receivable excluding significant financing componentsand accounts receivable with financing components not exceeding one year that the Company decides not toconsider are initially measured at the contract transaction price.The interest calculated by using the effective interest method during the holding period is included in the currentprofit and loss.
When taking back or disposing, the difference between the cost obtained and the book value of the financial assetis included in the current profit and loss.
(2) Financial assets (debt instrument) measured at fair value and whose changes are reckoned into othercomprehensive incomeThe financial assets (debt instrument) measured at fair value and whose changes are reckoned into othercomprehensive income consist of receivable financing and other debt investment and initially measured at fairvalue, relevant transaction fees are included in initial recognized amount. The financial assets are subsequentlymeasured at fair value, and the fair value changes are reckoned into other comprehensive income except for theinterest, impairment loss or gain and exchange gain or loss calculated by actual interest rate method.Upon termination of the recognition, the accumulated gains or losses previously included in other comprehensiveincome shall be transferred out and reckoned into current profit and loss.
(3) Financial assets (equity instrument) measured at fair value and whose changes are reckoned into othercomprehensive incomeThe financial assets (equity instrument) measured at fair value and whose changes are reckoned into othercomprehensive income consist of the equity instrument investment etc. and initially measured at fair value,relevant transaction fees are included in initial recognized amount. The financial assets are subsequently measuredat fair value, and the fair value changes are reckoned into other comprehensive income. The dividend obtainedshould reckoned into current gains/losses.Upon termination of the recognition, the accumulated gains or losses previously included in other comprehensiveincome shall be transferred out and reckoned into retained earnings.
(4) Financial assets measured at fair value and whose changes are reckoned into current gains/lossesThe financial assets measured at fair value and whose changes are reckoned into current gains/losses consist oftrading financial assets, derivative financial assets and other non-current financial assets etc. and initially measuredat fair value, relevant transaction fees are included in current gains/losses. The financial assets are subsequentlymeasured at fair value, and the fair value changes are reckoned into current gains/losses.Upon termination of the recognition, the difference between its fair value and initial entry amount is recognized asinvestment income, and adjust the gains/losses from fair value changes at the same time.
(5) Financial liability measured at fair value and whose changes are reckoned into current gains/losses
The financial liability measured at fair value and whose changes are reckoned into current gains/losses consist oftrading financial liability and derivative financial liability etc. and initially measured at fair value, relevant
深圳南山热电股份有限公司2020年半年度财务报告
transaction fees are included in current gains/losses. The financial liabilities are subsequently measured at fairvalue, and the fair value changes are reckoned into current gains/losses.
Upon termination of the recognition, the difference between its fair value and initial entry amount is recognized asinvestment income, and adjust the gains/losses from fair value changes at the same time.
(6) Financial liability measured at amortized cost
The financial liabilities measured at amortized cost consist of short-term loans, note payable, account payable,other account payable, long-term loans, bond payable and long-term account payable, and initially measured at fairvalue, relevant transaction fees are included in initial recognized amount.
The interests calculated by effective interest rate method during the holding period is reckoned into currentgains/losses.
Upon termination of the recognition, the difference between consideration paid and the book value of financialliability is reckoned into current gains/losses.
3. Recognition basis and measurement method for transfer of financial assets
When the Company transfers financial assets, if almost all risks and rewards of ownership of financial assets havebeen transferred to the transferee, derecognize the financial assets; if almost all risks and rewards of ownership offinancial assets have been retained, don’t derecognize the financial assets.
When determining whether the transfer of financial assets meets the above conditions for the termination ofrecognition of financial assets, adopt the principle of substance over form. The Company distinguishes the transferof financial assets into overall transfers and partial transfers of financial assets. If the overall transfer of financialassets meets the conditions for derecognition, the difference between the following two amounts is included in thecurrent profit and loss:
(1) The book value of the transferred financial assets;
(2) The sum of the consideration received as a result of the transfer and the cumulative amount of changes in thefair value that were directly credited to the owner's equity (the transferred financial asset is an available-for-salefinancial asset).
If partial transfer of financial assets meets the conditions for derecognition, the entire book value of the transferredfinancial assets is apportioned between the derecognized parts and non-derecognized parts according to theirrelative fair values, and the difference between the following two amounts is included in the current profit and loss:
(1) The book value of the derecognition part;
(2) The sum of the consideration of the derecognition part and the amount corresponding to the derecognition partof the cumulative total of changes in fair value that were directly credited to the owner's equity (the transferredfinancial asset is an available-for-sale financial asset).If the transfer of financial assets does not meet the conditions for derecognition, the financial assets arecontinuously recognized, and the consideration received is recognized as a financial liability.
4. Termination recognition of financial liability
深圳南山热电股份有限公司2020年半年度财务报告
Where the current obligation of a financial liability have been discharged in whole or in part, the recognition of thefinancial liability or part thereof shall be terminated; If the Company entered into an agreement with its creditors toreplace its existing financial liabilities with the new financial liability, and the contract terms of the new financialliabilities and the existing financial liabilities are substantially different, the existing financial liabilities shall beterminated for recognition and the new ones shall be recognized at the same time. As for substantive changes madeto the contract terms (in whole or in part) of the existing financial liabilities, the existing financial liabilities (orpart of it) will be terminated for recognition, and the financial liabilities after term revision will be recognized as anew financial liability.
When a financial liability is derecognized in whole or in part, the difference between the book value of thefinancial liability derecognized and the consideration paid (including the non-cash assets transferred out or the newfinancial liabilities assumed) is included in the current profit and loss.
If the Company repurchases part of the financial liabilities, the entire book value of the financial liabilities will beallocated on the repurchase date according to the relative fair value of the continuing recognition part and thederecognition part. The difference between the book value allocated to the derecognition part and the considerationpaid (including the transferred non-cash assets or assumed new financial liabilities) is included in the current profitand loss.
5. Methods for determining the fair value of financial assets and financial liabilities
For financial instruments that have an active market, their fair values are determined by using quotes in the activemarket. For financial instruments that do not have an active market, valuation techniques are used to determinetheir fair values. In the valuation, the Company adopts valuation techniques that are applicable under the currentcircumstances and have sufficient available data and other information support, chooses the input values consistentwith the characteristics of assets or liabilities considered by market participants in the transactions of related assetsor liabilities, and prioritizes the relevant observable input values. The Company uses unobservable input valuesonly if the relevant observable input values cannot be obtained or are not practicable.
6. Test methods and accounting treatment methods for impairment of financial assets (excluding receivables)The Company considers all reasonable and evidence-based information, including forward-looking information,and estimates the expected credit losses of financial assets measured at amortized cost by the single or combinedway and financial assets (debt instruments) measured at fair value and whose changes are included in othercomprehensive income. The measurement of expected credit losses depends on whether a significant increase incredit risk has occurred since the initial recognition of a financial asset.
If the credit risk of the financial instrument has increased significantly since initial recognition, the Company shallmeasure its loss provision at an amount equivalent to the expected credit loss throughout the life of the financialinstrument. If the credit risk of the financial instrument has not increased significantly since initial recognition, theCompany shall measure its loss provision at an amount equivalent to the expected credit loss of the financialinstrument in the next 12 months. The increased or reversed amount of the loss provision thus formed shall beincluded in the current profit and loss as impairment losses or gains.
Usually, the Company considers that the credit risk of the financial instrument has increased significantly when itis overdue for more than 30 days, unless there is conclusive evidence that the credit risk of the financial instrument
深圳南山热电股份有限公司2020年半年度财务报告
has not increased significantly after initial recognition.
If the credit risk of a financial instrument at the balance sheet date is low, the Company will consider that the creditrisk of the financial instrument has not increased significantly since initial recognition.
(11) Bad deb provision of account receivable
Regarding account receivables, whether or not it contains a significant financing component, the Company alwaysmeasures its loss provisions at an amount equivalent to the expected credit loss throughout the duration, and theresulting increase and reversed amount of loss provisions is included in the current profit and loss as impairmentlosses or gains.
In addition to receivables that individually assess credit risk, based on their credit risk characteristics, they aredivided into different portfolios:
| Item | Accrual ratio for account receivable (%) |
| Group 1: low-risk | The portfolio is determined based on the similarity of credit risk characteristics, the Company believes that the credit risk of a receivable that has not been impaired in a single assessment of credit risk is low, and no provision for bad debts is made unless there is evidence that the credit risk of a certain receivable is high. |
If there is objective evidence that a certain account receivable has suffered credit impairment, the Company shallmake provision for bad debts on that account receivable and confirm the expected credit loss.
(12) Inventory
1. Categories of inventory
Inventory consists of fuels and raw materials etc.
2. Valuation method of delivered inventory
The inventories are initially measured at cost. When the inventory is delivered, the actual cost of deliveredinventory shall be determined by weighted average method.
3.Basis for determining the net realizable value of different types of inventories
On the balance sheet day, the inventory is measured by the lower one between the cost and the net realizablevalue. As the net realizable value is lower than the cost, the inventory depreciation provision is accrued. Thenet realizable value is balance of the estimated sale price less the estimated forthcoming cost upon thecompletion, the estimated sale expense, and the relevant tax in the daily activities. Upon the recognition ofnet realizable value of the inventory, the concrete evidence is based on and the purpose of holding theinventory and the influence of events after the balance sheet day are considered.
深圳南山热电股份有限公司2020年半年度财务报告
As for the inventory of large sum and lower price, the inventory depreciation provision is accrued by the inventorycategories. As for the inventory related to the product series produced and sold in the same district, of the same orsimilar final use or purpose and impossible to be separated from the other items, the provision is consolidated andaccrued. The provision for other inventory is accrued by the difference between the cost and net realizable value.
Upon the accrual of the inventory depreciation provision, if the previous influence factors on the inventorydeduction disappeared, which resulted in the net realizable value being higher than its book value; the accrual istransferred back within the previous accrual of the provision and reckoned into the current gain/loss.
4. Inventory system
Perpetual inventory system required
5. Amortization method of low-value consumables and packaging
(1) Low-value consumables-one pass method
(2) Packaging- one pass method
(13) Contract assets
1. Confirmation methods and standards of contract assets
If the Company has transferred goods to customers and has the right to receive consideration, and the right dependson factors other than the time lapses, it is recognized as contract assets. The Company's unconditional (that is, onlydepending on the time lapses) right to collect consideration from customers are separately listed as receivables.
2. Determination method and accounting treatment method of expected credit loss of contract assetsThe Company's determination method and accounting treatment method for the expected credit loss of contractassets are detailed in Note III/(11) Provision for bad debts of receivables
(14) Long-term equity investment
1. Criteria judgement for joint control and significant influence
Joint control is the Company’s contractually agreed sharing of control over an arrangement, which relevantactivities of such arrangement must be decided by unanimously agreement from parties who share control. Wherethe Company and other joint ventures exercise joint control over the investee and enjoy the rights to the net assetsof the investee, the investee is a joint venture of the Company.
Significant influence is the right of the Company to participate in the financial and operation decision-making ofan enterprise, but not to control or jointly control the formulation of such policies with other parties. Where theCompany is able to exert significant influence on the investee, the investee shall be a joint venture of the Company.
2. Determination of initial investment cost
(1) Long-term equity investment resulting from enterprise combination
深圳南山热电股份有限公司2020年半年度财务报告
Enterprise combination under the same control: If the Company pays cash, transfers non-cash assets or assumesdebt, and issues equity securities as the consideration for the merger, the share of the book value of the owner'sequity of the combined party in the consolidated financial statements of the ultimate controlling party on thecombining date shall be used as the initial investment cost of long-term equity investment. If it is possible tocontrol the investee under the same control due to additional investments, etc., the initial investment cost oflong-term equity investment shall be determined based on the share of the book value of the net assets of thecombined party in the consolidated financial statements of the ultimate controlling party on the merger date. Thedifference between the initial investment cost of the long-term equity investment on the merger date and the sum ofthe book value of the long-term equity investment before the merger plus the book value of the new share paymentconsideration obtained on the merger date adjusts the equity premium. If the equity premium is insufficient to beoffset, the retained earnings shall be offset.
Business combination not under the same control: The Company uses the combination cost determined on thepurchase date as the initial investment cost of the long-term equity investment. If it is possible to exercise controlover an investee that is not under the same control due to additional investments, etc., the sum of the book value ofthe original equity investment plus the newly increased investment cost is used as the initial investment costcalculated by the cost method.
(2) Long-term equity investment obtained through other methods
For a long-term equity investment obtained by paying cash, the actually paid purchase price is taken as the initialinvestment cost.
For a long-term equity investment obtained by issuing equity securities, the fair value of the issued equitysecurities is taken as the initial investment cost.
On the premise that the non-monetary asset exchange has commercial substance and that the fair value of theassets swapped in or out can be reliably measured, the initial investment cost of the long-term equity investmentswapped in by non-monetary assets exchange is determined by the fair value of assets swapped out and therelevant payable taxes and fees, unless there is conclusive evidence that the fair value of the assets swapped in ismore reliable; for non-monetary assets exchange that do not meet the above preconditions, the book value of theassets swapped out and the relevant taxes and fees payable are used as the initial investment cost of the long-termequity investment swapped in.
For a long-term equity investment obtained through debt restructuring, its entry value is determined based on thefair value of the abandoned creditor's rights and other costs such as taxes directly attributable to the asset, and thedifference between the fair value of the abandoned creditor's rights and the book value is included in the currentprofit and loss.
3. Follow-up measurement and gain/loss recognition
(1) Long-term equity investment measured at cost
The long-term equity investment in subsidiaries shall be measured at cost. In addition to the actual prices or theannounced but yet undistributed cash dividend or profit in consideration valuation, the current investment return isrecognized by the announced cash dividend or profit by the invested units.
深圳南山热电股份有限公司2020年半年度财务报告
(2) Long-term equity investment measured at equity
The long-term equity investment in associated enterprise and joint ventures shall be measured at cost. If the initialinvestment cost is greater than than the share of fair value of the invested entity’s identifiable net assets, the initialinvestment cost of the long-term equity investment will not be adjusted; if the initial investment cost is less thanthan the share of fair value of the invested entity’s identifiable net assets, the difference shall reckoned in currentgains/losses.
The investment gain and other comprehensive income shall be recognized based on the Company’s share of the netprofits or losses and other comprehensive income made by the investee, respectively. Meanwhile, the carryingamount of long-term equity investment shall be adjusted. The carrying amount of long-term equity investmentshall be reduced based on the Group’s share of profit or cash dividend distributed by the investee. In respect of theother movement of net profit or loss, other comprehensive income and profit distribution of investee, the carryingvalue of long-term equity investment shall be adjusted and included in the owners’ equity.
The Company shall recognize its share of the investee’s net profits or losses based on the fair values of theinvestee’s individual separately identifiable assets at the time of acquisition, after making appropriate adjustmentsthereto during the accounting period and according to the accounting policy of the Company. During the period ofholding the investment, the investee prepares the consolidated financial statements based on the net profit, othercomprehensive income, and the amount attributable to the investee in changes in other owners' equity in theconsolidated financial statements for business accounting.
When the Company confirms that it should share the losses incurred by the investee, it shall proceed in thefollowing order. Firstly, write off the book value of the long-term equity investment. Secondly, if the book value ofthe long-term equity investment is not sufficient to offset, the investment loss shall continue to be recognizedwithin the limit of the book value of long-term equity that substantially constitutes a net investment in the investee,and offset the book value of long-term receivables. Finally, after the above-mentioned treatment, if the enterprisestill bears additional obligations as stipulated in the investment contract or agreement, the estimated liabilities arerecognized according to the estimated obligations and included in the current investment loss.
(3) Disposal of long-term equity investment
When disposing of a long-term equity investment, the difference between its book value and the actual purchaseprice is included in the current profit and loss.
When disposing of a long-term equity investment accounted for by using the equity method, use the same basis asthe investee directly disposes of related assets or liabilities, and make accounting treatment to the portion that wasoriginally included in other comprehensive income according to the corresponding proportion. The owner's equityrecognized as a result of changes in other owner's equity of the investee other than net profit or loss, othercomprehensive income, and profit distribution is carried forward to the current profit and loss on a pro rata basis,except for other comprehensive income arising from the remeasurement of the net liabilities or net assets changesof the defined benefit plan by the investee.
If the joint control or significant influence on the investee is lost due to the disposal of part of the equityinvestment, etc., the remaining equity after disposal shall be calculated in accordance with the financial instrumentrecognition and measurement standards, and the difference between the fair value and the book value on the day of
深圳南山热电股份有限公司2020年半年度财务报告
losing the joint control or significant influence is included in the current profit and loss. Other comprehensiveincome of the original equity investment recognized due to using the equity method for accounting shall adopt theaccounting treatment on the same basis as the investee directly disposes of related assets or liabilities whenterminating the adoption of equity method for accounting. The owner's equity recognized as a result of changes inthe owner's equity other than net profit or loss, other comprehensive income and profit distribution of the investeeis transferred to current profit and loss when terminating the adoption of equity method for accounting.
The control over the investee is lost due to the disposal of part of the equity investment and the capital increase inthe subsidiary by other investors resulting in a decline in the shareholding ratio of the Company, in preparingseparate financial statements, the remaining equity interest which can apply common control or impose significantinfluence over the investee shall be accounted for using equity method. Such remaining equity interest shall betreated as accounting for using equity method since it is obtained and adjustment was made accordingly. Forremaining equity interest which cannot apply common control or impose significant influence over the investeel, itshall be accounted for using the recognition and measurement standard of financial instruments. The differencebetween its fair value and carrying amount as at the date of losing control shall be included in profit or loss for thecurrent period.
The disposed equity is obtained through business combination due to additional investment and other reasons,when preparing individual financial statements, if the remaining equity after disposal uses cost method or equitymethod for accounting, the equity investments held before the acquisition date shall be carried forward inproportion to other comprehensive income and other owner's equity recognized through equity method accounting;For the remaining equity interest after disposal accounted for using the recognition and measurement standard offinancial instruments, other comprehensive income and other owners’ equity shall be fully transferred.
(15) Investment real estate
Investment real estate is defined as the real estate with the purpose to earn rent or capital appreciation or both,including the rented land use rights and the land use rights which are held and prepared for transfer afterappreciation, the rented buildings. (Including buildings for lease after self-construction or development activitiescompleted and buildings under construction or development for lease in the future)
Investment real estate of the Company are measured at cost model. The Investment real estate- rental buildingsmeasured at cost model has the same depreciation policy as fixed assets, the land use right for lease is exercise theamortization policy as intangible assets.
(16) Fixed assets
1. Recognition conditions for the fixed assets
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing services,lease or for operation & management, and have more than one fiscal year of service life. Fixed assets arerecognized when the following conditions are simultaneously met:
(1) The economic benefits with the fixed assets concerned are likely to flow into the enterprise; and
(2) cost of the fixed assets can be measured reliably.
深圳南山热电股份有限公司2020年半年度财务报告
2. Depreciation method
From the next month since reaching the intended use state, depreciation on fixed assets shall be accounted by usingthe method of average life length except the steam turbine generating unit that accounted by withdrawal theworking volume method.
Life expectancy, expected net impairment value and annual depreciation rate of all assets are as follows:
| Category | Depreciation method | Depreciation life (Year) | Residuals rate(%) | Annual depreciation rate (%) |
| Houses and buildings | Straight-line | 20-year | 10 | 4.5 |
| Equipment (fuel machinery sets excluded) | Straight-line | 15-20-year | 10 | 4.5-6 |
| Equipment-fuel machinery sets(Note) | The work quantity method | 10 | The work quantity method | |
| Transportation tools | Straight-line | 5-year | 10 | 18 |
| Other equipment | Straight-line | 5-year | 10 | 18 |
Estimated salvage value refers to the amount of value retrieved after deducting of predicted disposal expense whenthe expected using life of a fixed asset has expired and in the expected state of termination.
Note: gas turbine generator set is provided with depreciation under workload method, namely to determine thedepreciation amount per hour of gas turbine generator set based on equipment value, predicted net remaining valueand predicted generation hours. Details are set out as follows:
| Name of the Company | Fixed assets | Depreciation amount (RMB/Hour) |
| The Company | Generating unit 1# | 538.33 |
| Generating unit 3# | 601.20 | |
| New Power | Generating unit 10# | 520.61 |
| Zhongshan Electric Power | Generating unit 1# | 4,246.00 |
| Generating unit 3# | 4,160.83 |
深圳南山热电股份有限公司2020年半年度财务报告
3. Recognition basis and measurement method of fixed assets under finance lease
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks andrewards of ownership to the lessee. Title may or may not eventually be transferred. The depreciation policy forfixed asset held under finance lease is consistent with that for its owned fixed asset. When a leased asset can bereasonably determined that its ownership will be transferred at the end of the lease term, it is depreciated over theperiod of expected use; otherwise, the leased asset is depreciated over the shorter period of the lease term and theperiod of expected use.
4. Other explanation
Concerning the follow-up expenses related to fixed assets, if the relevant economy benefit of fixed assets probablyin-flow into the Company and can be measured reliably, reckoned into cost of fixed assets and terminated therecognition of the book value of the parts that been replaced. Others follow-up expenses should reckoned intocurrent gains/losses while occurred.
Terminated the recognition of fixed assets that in the status of disposal or pass through the predicted usage orwithout any economy benefits arising from disposal. Income from treatment of fixed asset disposing, transferring,discarding or damage, the balance after deducting of book value and relative taxes is recorded into current incomeaccount.
The Company re-reviews useful life, expected net residual value and depreciation method of fixed assets at least ateach year end. Any change thereof would be recorded as change of accounting estimates.
(17) Construction in process
Cost of construction in process is determined at practical construction expenditures, including all expenses duringthe construction, capitalized loan expenses before the construction reaches useful status, and other relativeexpenses. It is transferred to fixed asset as soon as the construction reaches the useful status.
(18) Borrowing expenses
Borrowing expenses include interest, amortization of discounts or premiums related to borrowings, ancillary costsincurred in connection with the arrangement of borrowings, and exchange differences arising from foreigncurrency borrowings. Borrowing expenses that can be directly attributed for purchasing or construction of assetsthat are complying with capitalizing conditions start to be capitalized when the payment of asset and borrowingexpenses have already occurred, and the purchasing or production activities in purpose of make the asset usablehave started; Capitalizing will be terminated as soon as the asset that complying with capitalizing conditions hasreached its usable or saleable status. The other borrowing expenses are recognized as expenses when occurred.
Interest expenses practically occurred at the current term of a special borrowing are capitalized after deducting ofthe bank saving interest of unused borrowed fund or provisional investment gains; Capitalization amounts ofcommon borrowings are decided by the weighted average of exceeding part of accumulated asset expenses overthe special borrowing assets multiply the capitalizing rate of common borrowings adopted. Capitalization rates are
深圳南山热电股份有限公司2020年半年度财务报告
decided by the weighted average of common borrowings.
During the capitalization period, exchange differences on a specific purpose borrowing denominated in foreigncurrency shall be capitalized. Exchange differences related to general-purpose borrowings denominated in foreigncurrency shall be included in profit or loss for the current period.
Qualifying assets are assets (fixed assets, investment property, inventories, etc.) that necessarily take a substantialperiod of time for acquisition, construction or production to get ready for their intended use or sale.
Capitalization of borrowing costs shall be suspended during periods in which the acquisition, construction orproduction of a qualifying asset is interrupted abnormally, when the interruption is for a continuous period of morethan 3 months, until the acquisition, construction or production of the qualifying asset is resumed.
(19) Intangible assets
An intangible asset is an identifiable non-monetary asset without physical substance owned or controlled by theCompany.
An intangible asset shall be initially measured at cost. The expenditures incurred on an intangible asset shall berecognized as cost of the intangible asset only if it is probable that economic benefits associated with the asset willflow to the Company and the cost of the asset can be measured reliably. Other expenditures on an item asset shallbe charged to profit or loss when incurred.
Land use right acquired shall normally be recognized as an intangible asset. Self-constructed buildings (e.g. plants),related land use right and the buildings shall be separately accounted for as an intangible asset and fixed asset. Forbuildings and structures purchased, the purchase consideration shall be allocated among the land use right and thebuildings on a reasonable basis. In case there is difficulty in making a reasonable allocation, the consideration shallbe recognized in full as fixed assets.
An intangible asset with a finite useful life shall be stated at cost less estimated net residual value and anyaccumulated impairment loss provision and amortized using the straight-line method over its useful life when theasset is available for use. Intangible assets with indefinite life are not amortized.
The Group shall review the useful life of intangible asset with a finite useful life and the amortization methodapplied at least at each financial year-end. A change in the useful life or amortization method used shall beaccounted for as a change in accounting estimate. For an intangible asset with an indefinite useful life, the Groupshall review the useful life of the asset in each accounting period. If there is evidence indicating that the useful lifeof that intangible asset is finite, the Company shall estimate the useful life of that asset and apply the accountingpolicies accordingly.
(20) Impairment of long-term assets
The Group will judge if there is any indication of impairment as at the balance sheet date in respect of non-currentnon-financial assets such as fixed assets, construction in process, intangible assets with an infinite useful life,
深圳南山热电股份有限公司2020年半年度财务报告
investment properties measured at cost, and long-term equity investments in subsidiaries, joint ventures andassociates. If there is any evidence indicating that an asset may be impaired, recoverable amount shall be estimatedfor impairment test. Goodwill, intangible assets with an indefinite useful life and intangible assets beyond workingconditions will be tested for impairment annually, regardless of whether there is any indication of impairment.
If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount, theimpairment provision will be made according to the difference and recognized as an impairment loss. Therecoverable amount of an asset is the higher of its fair value less costs of disposal and the present value of thefuture cash flows expected to be derived from the asset. An asset’s fair value is the price in a sale agreement in anarm’s length transaction. If there is no sale agreement but the asset is traded in an active market, fair value shall bedetermined based on the bid price. If there is neither sale agreement nor active market for an asset, fair value shallbe based on the best available information. Costs of disposal are expenses attributable to disposal of the asset,including legal fee, relevant tax and surcharges, transportation fee and direct expenses incurred to prepare the assetfor its intended sale. The present value of the future cash flows expected to be derived from the asset over thecourse of continued use and final disposal is determined as the amount discounted using an appropriately selecteddiscount rate. Provisions for assets impairment shall be made and recognized for the individual asset. If it is notpossible to estimate the recoverable amount of the individual asset, the Group shall determine the recoverableamount of the asset group to which the asset belongs. The asset group is the smallest group of assets capable ofgenerating cash flows independently.
For the purpose of impairment testing, the carrying amount of goodwill presented separately in the financialstatements shall be allocated to the asset groups or group of assets benefiting from synergy of businesscombination. If the recoverable amount is less than the carrying amount, the Group shall recognize an impairmentloss. The amount of impairment loss shall first reduce the carrying amount of any goodwill allocated to the assetgroup or set of asset groups, and then reduce the carrying amount of other assets (other than goodwill) within theasset group or set of asset groups, pro rata on the basis of the carrying amount of each asset.
Once an impairment loss of these assets is recognized, it is not allowed to be reversed even if the value can berecovered in subsequent period.
(21) Long-term unamortized expenses
Long-term unamortized expenses are those already occurred and amortizable to the current term and successiveterms for over one year. Long-term amortizable expenses are amortized by straight-line method to the benefitperiod.
(22)Contract liabilities
1. Confirmation method of contract liabilities
The Company's obligation to transfer goods or provide services to customers for consideration received orreceivable from customers is listed as contract liabilities.
(23) Staff remuneration
Staff remuneration includes short term staff remuneration, post office benefit, dismissal benefit and other long term
深圳南山热电股份有限公司2020年半年度财务报告
staff benefits, among which:
Short term staff remuneration mainly consists of salary, bonus, allowance and subsidy, staff benefits, medicalinsurance, maternity insurance, work related injury insurance, housing funds, labor unit fee and education fee,non-monetary benefits, etc. short term staff remuneration actually happened during the accounting period in whichstaff provides services to the Company is recognized as liability, and shall be included in current gains and lossesor relevant asset cost. Non-monetary benefits are measured at fair value.
Post office benefits mainly consist of defined withdraw plan and defined benefit plan. Defined withdraw planmainly includes basic pension insurance, unemployment insurance and annuity, and the contribution payable isincluded in relevant asset cost or current gains and losses when occurs.
When the Company terminates the employment relationship with employees before the end of the employmentcontracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, theCompany shall recognize employee compensation liabilities arising from compensation for staff dismissal andincluded in profit or loss for the current period, when the Company cannot revoke unilaterally compensation fordismissal due to the cancellation of labor relationship plans and employee redundant proposals; and the Companyrecognize cost and expenses related to payment of compensation for dismissal and restructuring, whichever isearlier. However, if the compensation for termination of employment is not expected to be fully paid within 12months from the reporting period, it shall be accounted for other long-term staff remuneration.
The early retirement plan shall be accounted for in accordance with the accounting principles for compensation fortermination of employment. The salaries or wages and the social contributions to be paid for the employees whoretire before schedule from the date on which the employees stop rendering services to the scheduled retirementdate, shall be recognized (as compensation for termination of employment) in the current profit or loss by theGroup if the recognition principles for provisions are satisfied.
For other long-term employee benefits provided by the Company to its employees, if satisfy with the establishedwithdraw plan, then the benefits are accounted for under the established withdraw plan, otherwise accounted forunder defined benefit scheme.
(24) Accrual liability
1. Recognition criteria
The obligations with contingencies concerned as litigation, debt guarantee and contract in loss are recognized asaccrual liability when the following conditions are met simultaneously:
(1) the liability is the current liability that undertaken by the Company;
(2) the liability has the probability of result in financial benefit outflow; and
(3) the responsibility can be measured reliably for its value.
Measurement on vary accrual liability
At balance sheet day, with reference to the risks, uncertainty and periodic value of currency that connected to the
深圳南山热电股份有限公司2020年半年度财务报告
contingent issues, the predicted liabilities are measured according to the best estimation on the payment to fulfillthe current responsibility.
If the expenses for clearing of predictive liability is fully or partially compensated by a third party, and thecompensated amount can be definitely received, it is recognized separated as asset. The compensated amount shallnot be greater than the book value of the predictive liability.
(1) Contact in loss
Contact in loss is identified when the inevitable cost for performance of the contractual obligation exceeds theinflow of expected economic benefits. When a contract in loss is identified and the obligations there under arequalified by the aforesaid recognition criterion for contingent liability, the difference of estimated loss undercontract over the recognized impairment loss (if any) of the subject matter of the contract is recognized ascontingent liability.
(2) Restructuring obligations
For detailed, official and publicly announced restructuring plan, the direct expenses attributable to the restructuringare recognized as contingent liabilities, provided that the aforesaid recognition criterion for contingent liability ismet. For restructuring obligations arising from disposal of part business, the Company will recognize theobligations relating to restructuring only when it undertakes to dispose part business (namely entering intofinalized disposal agreement).
(25) Revenue
The Company’s revenue is recognized after it has fulfilled the performance obligations in the contract, that is,when the customer obtains control of the relevant assets (goods or services). Whether the performance obligation isfulfilled within a certain period of time or at a certain time point depends on the terms of the contract and relevantlegal provisions. If the Company meets one of the following conditions, it belongs to the performance obligationwithin a certain period of time:
1. The customer obtains and consumes the economic benefits brought by the Company's performance when theCompany fulfills its performance.
2. The client can control the assets under construction during the performance of the Company.
3. The assets produced by the Company during the performance have irreplaceable uses, and the Company has theright to collect payment for the cumulative performance that has been completed so far during the entire contractperiod.
If the performance obligation is performed within a certain period of time, the Company recognizes revenueaccording to the performance progress. Otherwise, the Company recognizes revenue at a certain point when thecustomer obtains control of the relevant assets. The performance progress is measured by the Company'sexpenditure or investment in fulfilling the performance obligations, and the progress is determined based on theproportion of the cumulative cost incurred as of the balance sheet date of each contract to the estimated total cost.
When determining the contract transaction price, if there is a variable consideration, the Company shall determinethe best estimate of the variable consideration based on the expected value or the most likely amount, and theamount that does not exceed the cumulatively recognized revenue when the relevant uncertainty is eliminated and
深圳南山热电股份有限公司2020年半年度财务报告
that is very likely not to have significant reversal is included in the transaction price. If there is a major financingcomponent in the contract, the Company will adjust the transaction price according to the financing component inthe contract; if the interval between the transfer of control and the payment by the customer is less than one year,the Company will not consider the financing component.
Detail recognition according to specific revenue:
1. Power marketing revenue
The Group generates electricity by thermal power, and realizes sales through incorporation into Guangdong powergrid. As for power sales, the Group realizes revenue when it produces electricity and obtains the grid powerstatistics table confirmed by the power bureau.
2. Specific criteria for revenue recognition of the Environment Protection Company
At the end of each month, the company confirms the monthly income based on the initially confirmed sludgetransportation volume and sludge treatment price, and revises the revenue confirmed last month after checkingwith the relevant units in the next month, and the correction proportion is relatively small.
3. Specific criteria for revenue recognition of the Engineering Company
(1)Debugging projects: When the debugging is successful, obtain the confirmation of successful debugging, andconfirm the income according to the contract;
(2) Operation and maintenance and management projects: Temporarily estimate and confirm the income everymonth according to the attendance time and labor service price of attendance staff, and adjust the temporarilyestimated income after obtaining the monthly settlement statement sealed and signed by suppliers, the confirmationof progress, and the attendance form.
(26)Contract costs
Contract costs are divided into contract performance costs and contract acquisition costs.The cost incurred by the Company to perform the contract is recognized as an asset as the contract performancecost when meeting the following conditions:
1. The cost is directly related to a current or expected contract.
2. The cost increases the Company's future resources for fulfilling contract performance obligations.
3. The cost is expected to be recovered.
The incremental cost incurred by the Company for obtaining the contract is expected to be recovered, and it isrecognized as an asset as the cost of obtaining the contract.
Assets related to contract costs are amortized on the same basis as the revenue of goods or services related to theasset; however, if the amortization period of contract acquisition costs does not exceed one year, the Company willinclude them in the current profits and losses when they occur.If the book value of assets related to contract costs is higher than the difference between the following two items,the Company will make provisions for impairment for the excess part and recognize it as an asset impairment loss:
深圳南山热电股份有限公司2020年半年度财务报告
1. The remaining consideration expected to be obtained due to the transfer of goods or services related to the asset;
2. Costs estimated to incur for the transfer of the related goods or services.
If the aforementioned asset impairment provision is subsequently reversed, the book value of the asset afterreversal shall not exceed the book value of the asset on the date of reversal under the assumption that noimpairment provision is made.
(27) Government subsidy
Government subsidy refers to the monetary asset and non-monetary asset that the Company obtains from thegovernment free of charge, excluding the capital that the government invests as an investor and enjoys thecorresponding owner's equity. Government subsidies are divided into the asset-related government subsidy and theincome-related government subsidy.
If the government subsidy is a monetary asset, it shall be measured according to the received or receivable amount.If the government subsidy is a non-monetary asset, it shall be measured at fair value. If the fair value cannot beobtained reliably, it shall be measured according to the nominal amount. Government subsidy measured bynominal amount is directly included in the current profits and losses.
The government subsidy related to the assets is recognized as deferred income and is recorded into the currentprofits and losses or the book value of the relevant assets in a reasonable and systematic manner within the usefullife of the relevant assets. Revenue-related government grants are used to compensate for the related costs or lossesincurred during the subsequent period and are recognized as deferred income and are recognized in the currentprofit or loss or related expenses during the period of recognition of the relevant cost expense or loss; Incurredcosts or losses incurred, directly included in the current profits and losses or offset the relevant costs.
For the government subsidy containing both asset-related parts and income-related parts at the same time,distinguish the different parts and make the accounting treatment, classify the parts which are difficult to bedistinguished as the income-related government subsidy.
The government subsidy related to the Company’s daily activities is included in other incomes or offsets relatedcosts in accordance with the essence of economic business; while the government subsidy unrelated to theCompany’s daily activities is included in non-operating income and expenditure.
When the recognized government subsidy needs to be refunded or has balance of related deferred income, offsetthe book balance of related deferred income, and include the excess parts in the current profits and losses or (theasset-related government subsidy for offsetting the book value of underlying assets in initial recognition) adjust thebook value of assets; directly include these belong to other situations in the current profits and losses.
(28) Deferred income tax asset/ deferred income tax liability
1. Current income tax
On balance sheet date, current income tax liability (or asset) formed during and before current period will be
深圳南山热电股份有限公司2020年半年度财务报告
measured as amount of income tax payable (or repayable) as specified by tax law. The taxable income forcalculating the current income tax expenses is based on the pre-tax accounting profit of the current year afteradjustment according to relevant regulations of taxation.
2. Deferred income tax asset & deferred income tax liability
For balance of book value of some asset/liability item and its tax base, or temporary difference derived frombalance of book value and tax base of the item, which is not confirmed as asset or liability but tax base can befixed as specified by tax law, deferred income tax asset & deferred income tax liability will be confirmed inbalance sheet liability approach.
Deferred income tax liabilities are not recognized for taxable temporary differences related to: the initialrecognition of goodwill; and the initial recognition of an asset or liability in a transaction which is neither abusiness combination nor affects accounting profit or taxable profit (or deductible loss) at the time of thetransaction. In addition, the Group recognizes the corresponding deferred income tax liability for taxabletemporary differences associated with investments in subsidiaries, associates and joint ventures, except when bothof the following conditions are satisfied: the Company able to control the timing of the reversal of the temporarydifference; and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are not recognized for deductible temporary differences related to the initial recognitionof an asset or liability in a transaction which is neither a business combination nor affects accounting profit ortaxable profit (or deductible loss) at the time of the transaction. In addition, the Group recognizes thecorresponding deferred income tax asset for deductible temporary differences associated with investments insubsidiaries, associates and joint ventures to the extent that it is probable that taxable profits will be availableagainst which the deductible temporary differences can be utilized, except when both of the following conditionsare satisfied: it is not probable that the temporary difference will reverse in the foreseeable future; and it is notprobable that taxable profits will be available in the future, against which the temporary difference can be utilized.
For deductible loss and taxation decrease which can be carried over to following fiscal year, relevant deferredincome tax asset may be confirmed subject to amount of taxable income which is likely to be acquired to deductdeductible loss and taxation decrease in the future.On balance sheet day, those deferred income tax assets and income tax liabilities, according to the tax law,calculation will be on tax rate applicable to retrieving period of assets or clearing of liabilities.On balance sheet day, verification will be performed on the book value of differed income tax assets. If it is notpossible to obtain enough taxable income to neutralize the benefit of differed income tax assets, then the bookvalue of the differed income tax assets shall be reduced. Whenever obtaining of taxable income became possible,the reduced amount shall be restored.
3. Income tax expenses
Income tax expense includes current income tax and deferred income tax.Current deferred income tax and deferred income tax expenses or income shall reckoned into current gains/lossesother that those current income tax and deferred income tax with transactions and events concerned, that reckonedinto shareholder’s equity directly while recognized as other comprehensive income; and the book value of thegoodwill adjusted for deferred income tax arising from enterprise combination.
深圳南山热电股份有限公司2020年半年度财务报告
4. Offset of income tax
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to realize theassets and settle the liabilities simultaneously, current tax assets and current tax liabilities are offset and presentedon a net basis.
When the Group has a legal right to settle current tax assets and liabilities on a net basis, and deferred tax assetsand deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxableentity or different taxable entities which intend either to settle current tax assets and liabilities on a net basis or torealize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred taxassets or liabilities are expected to be reversed, deferred tax assets and deferred tax liabilities are offset andpresented on a net basis.
(29) Leasing
Finance lease is to virtually transfer all risks and rewards related to ownership of asset, the ownership is maytransfer ultimately or not. Leases other than finance lease are operating leases.
1.Lease business with the Company as the rentee
The rental is reckoned into the relevant assets cost or the current loss/gain in the straight-line method. The initialdirect expenses are reckoned into the current gain/loss, or the actual rental into the current loss/gain.
2.Lease business with the Company as the renter
The rental is reckoned into the relevant assets cost or the current loss/gain in the linear way. The initial directsubstantive expenses are capitalized and reckoned into the current gain/loss, or the actual rental into the currentloss/gain. The initial direct small expenses are reckoned into the current actual gain/loss, or the actual rental intothe current loss/gain.
3. Financing lease business with the Group recorded as lessee
On the beginning date of the lease, the entry value of leased asset shall be at the lower of the fair value of theleased asset and the present value of minimum lease payment at the beginning date of the lease. Minimum leasepayment shall be the entry value of long-term accounts payable, with difference recognized as unrecognizedfinancing expenses. In addition, initial direct costs attributable to leased items incurred during the process of leasenegotiation and signing of lease agreement shall be included in the value of leased assets. The balance of minimumlease payment after deducting unrecognized financing expenses shall be accounted for long-term liability andlong-term liability due within one year.
Unrecognized financing expenses shall be recognized as financing expenses for the current period using effectiveinterest method during the leasing period. Contingent rent shall be included in profit or loss for the current periodat the time it incurred.
4.Financing lease business with the Group recorded as lessor
On the beginning date of the lease, the entry value of lease receivable shall be the aggregate of minimum lease
深圳南山热电股份有限公司2020年半年度财务报告
receivable and initial direct costs at the beginning date of the lease. The unsecured balance shall be recorded. Theaggregate of minimum lease receivable, initial direct costs and unsecured balance and the different between theirpresent value shall be recognized as unrealized financing income. The balance of lease receivable after deductingunrecognized financing income shall be accounted for long-term debt and long-term debt due within one year.
Unrecognized financing income shall be recognized as financing income for the current period using effectiveinterest method during the leasing period. Contingent rent shall be included in profit or loss for the current period
(30) Other major accounting policies and estimations
The discontinued operation refers to the component that meets one of following conditions and has been disposedby the Company or classified as held-for-sale and can be individually distinguished when operating and preparingthe financial statements: 1- the component represents an independent main Business or a major operating area; 2-the component is a parts that intends to dispose or arrange an independent main business or a major operating area;3- the component is a subsidiary obtained only for re-sale.
(31) Changes of major accounting policy and accounting estimation
1. Change of major accounting policies
The Accounting Standards for Business Enterprises No. 14 - Revenue was revised by Ministry of Finance in 2017.In accordance with the Revised Standard, the cumulative impact of the first implementation of the standard isadjusted for the amount of retained earnings and other related items in the financial statements at the beginning ofthe first implementation period (January 1, 2020), and no adjustment is made to the comparable period information.Main influence while exercising the above provision are as:
| Content / causes for the changes of accounting policies | Approval procedures | Note |
| The Company implemented the Accounting Standards for Business Enterprises No. 14 - Revenue revised by Ministry of Finance in 2017 since 1 Jan. 2020 | Deliberated and approved by 6th session of 8th BOD | No significant influence |
2. Change of accounting estimation
No change of accounting estimation occurred in the reporting period
(32)Major accounting judgment and estimation
When using the accounting policies, the Company needs to made judgment, estimation and assumption forcarrying value of certain items which cannot be measured adequately due to inherent uncertainty of economicactivities. Such judgment, estimation and assumption are based on historical experiences of the Group’smanagement, together with consideration of other relevant factors. These judgments, estimations and assumptionwould affect the reported amount of income, expense, asset and liability and disclosure of contingent liabilities onbalance sheet date. However, actual results resulting from the uncertainty of these estimates may differ from thecurrent estimation made by management of the Company, which would in turn lead to material adjustments to thecarrying value of assets or liabilities which will be affected in future.
深圳南山热电股份有限公司2020年半年度财务报告
The Group conducts regular re-review on the aforesaid judgment, estimation and assumption on a continuedoperation basis. If the change of accounting estimation only affect current period, the affected amount isrecognized in the period when change occurs. If the change affects current and future periods both, the affectedamount is recognized in the period when change occurs and future periods.
On balance sheet date, major aspects in the statement need to judge, estimate and consumption by the Companyare as:
1.Fixed assets are provided for depreciation by output method
The Group recognizes depreciation for unit electricity based on values of power generation machine sets, projectedpower sales volume and projected net remaining value, and provides for depreciation according to depreciation ofunit electricity and actual power sales volume. Taking into account the prevailing industry policies, technologies,consumption, allocation method of power management authorities and past experiences, and the Groupmanagement believes that it is adequate for utilization life of such power generation machine sets, projected powersales volume, projected net remaining value and provision method for depreciation. If the future actual power salesvolume differs substantially from the projected one, the Group would make adjustment to unit electricitydepreciation, which would bring affects to the depreciation expenses included in profit and loss for the current andfuture periods.
2.Provision for bad debts
The Group use allowance method to state bad debt losses according to the accounting policies of accountsreceivable. Impairment of receivables is based on the assessment of the collectibility of accounts receivable.Identification of impairment of receivables requires management judgments and estimates. The differencesbetween actual results and the original estimate will affect the book value of accounts receivable as well as therecognition or reversal of provision for bad debts in the period in which the estimate is changed.
3.Allowance for inventories
Under the accounting policies of inventories and by measuring at the lower of cost and net realizable value, theGroup makes allowance for inventories that have costs higher than net realizable value or become obsolete andslow moving. Write-down of inventories to their net realizable values is based on the salability of the evaluatedinventory and their net realizable values. Identification of inventories requires management to make judgments andestimates on the basis of obtaining conclusive evidence, and considering the purpose of holding inventory and theevents after balance sheet date. The differences between actual results and the original estimate will affect the bookvalue of inventories as well as the recognition or reversal of provision for inventories in the period in which theestimate is changed.
4. Impairment provision for long-term assets
The Company makes judgment on each balance sheet date on whether there is indication of impairment in respectof non-current assets other than financial assets. Intangible assets with indefinite useful life shall also be furthertested for impairment when there is indication of impairment, in addition to the annual impairment test. Othernon-current assets other than financial assets would be test for impairment when there is indication showing itscarrying value in not likely to be recovered.
Impairment exists when carrying value of asset or assets group is higher than recoverable amount, namely the
深圳南山热电股份有限公司2020年半年度财务报告
higher of fair value less disposal cost and present value of expected future cash flow.
The calculation of the fair value less costs of disposal is based on available data from binding sales transactions inan arm’s length transaction of similar assets or observable market prices less incremental costs for disposing of theasset.
In assessing value in use, significant judgments are exercised over the asset’s production, selling price, relatedoperating expenses and discount rate to calculate the present value. All relevant materials which can be obtainedare used for estimation of the recoverable amount, including the estimation of the production, selling price andrelated operating expenses based on reasonable and supportable assumptions.
The Group determines whether goodwill is impaired at least on an annual basis. This requires an estimation of thevalue in use of the cash-generating units to which the goodwill is allocated. Estimating the value in use requires theGroup to make an estimate of the expected future cash flows from the cash-generating units and also to choose asuitable discount rate in order to calculate the present value of those cash flows.
5. Depreciation and amortization
Assets such as investment real estate and intangible assets are depreciated and amortized over their useful livesunder straight line method after taking into account residual value. The estimated useful lives of the assets areregularly reviewed to determine the depreciation and amortization costs charged in each reporting period. Theuseful lives of the assets are determined based on historical experience of similar assets and the estimated technicalchanges. If there have been significant changes in the factors used to determine the depreciation or amortization,the rate of depreciation or amortization is revised prospectively.
6. Deferred income tax assets
Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable profit willbe available against which the losses can be utilized. Significant management judgment is required to determinethe amount of deferred income tax assets that can be recognized, based upon the likely timing and level of futuretaxable profits together with future tax planning strategies.
7. Accrual liability
Provision for product quality guarantee, estimated onerous contracts, and delay delivery penalties shall berecognized in terms of contract, current knowledge and historical experience. If the contingent event has formed apractical obligation which probably results in outflow of economic benefits from the Group, a projected liabilityshall be recognized on the basis of the best estimate of the expenditures to settle relevant practical obligation.Recognition and measurement of the accrual liability significantly rely on the management’s judgmentsinconsideration of the assessment of relevant risks, uncertainties, time value of money and other factors related tothe contingent events.
In addition, the Company would accrual liability for after-sale quality maintenance commitment provided tocustomers in respect of goods sold, maintained and reconstructed by the Company. Recent maintenance experienceof the Company has been considered when projecting liabilities, while the recent maintenance experience may notreflect the future maintenance. Any increase or decrease of this provision may affect profit or loss for future years.
深圳南山热电股份有限公司2020年半年度财务报告
IV. Taxes
(1) Main taxation and rates
| Taxation items | Taxation basis | Tax rate |
| VAT | Calculate the output tax based on the sales of goods and taxable service income calculated according to the tax law, after deducting the input tax allowable for deduction in the current period, the difference is the VAT payable. | 6%, 9%, 10%, 11% , 13%, 16% |
| City maintenance tax | According to the actual payment of VAT and consumption tax | 5%, 7% |
| Education surtax | According to the actual payment of VAT and consumption tax | 3% |
| Local education surtax | According to the actual payment of VAT and consumption tax | 2% |
| Enterprise income tax | According to the taxable income amount | 16.5%, 17%, 25%, 15% |
| Land-use tax of town | 2 Yuan ~ 8Yuan per square meter of the actual occupied are for the industrial land located in Nanshan District, Shenzhen City; 1Yuan per square meter of the actual occupied are for the industrial land located in Zhongshan City | |
| Land VAT | Tax by the Value-added amount from transferring state-owned land use right, landing construction and its affiliates with four super-rate progressive tax rate | |
As for the taxpaying bodies have different enterprise income tax rate, explanation as:
| Taxpaying body | Rate of income tax |
| The Company | 25% |
| New Power Company | 25% |
| Engineering Company | 25% |
| Shenzhen Server | 25% |
| Environment Protection Company | 15% |
| Zhongshan Electric Power | 25% |
深圳南山热电股份有限公司2020年半年度财务报告
| Taxpaying body | Rate of income tax |
| Singapore Company | 17% |
| Shen Storage | 25% |
| Syndisome | 16.5% |
(2) Taxes preferential
1. VAT
| Tax | Name of the company | Relevant regulation and policies basis | Approval institution | Approval documents | Exemption range | Period of validity |
| VAT | Environment Protection Company | Notice on "contents of products with comprehensive utilization of resources and value-added tax privilege of labor service" (CS No. [2015] 78) | Shenzhen Provincial Office, SAT (Qianhai SAT) | SQSST[2018]No.: 18302 | Resource comprehensive utilization of VAT refund | 31 Aug. 2018 to 31 July 2022 |
2. Income tax
According to the announcement (No. 60 of 2019) of the Ministry of Finance, the State Administration of Taxation,the National Development and Reform Commission, and the Ministry of Ecological Environment, and theAnnouncement on Issues Concerning Income Tax Policies for Third-Party Enterprises Engaged in PollutionPrevention and Control of the Ministry of Finance and the State Administration of Taxation, from January 1, 2019to December 31, 2021, the corporate income tax will be levied at a reduced rate of 15% on eligible third-partyenterprises engaged in pollution prevention and control. The Company’s subordinate Environment ProtectionCompany enjoys the above preferential policy and levies corporate income tax at a rate of 15%
V. Annotation of the items in consolidate financial statement
(1) Monetary fund
| Item | Ending Balance | Year-end balance of last year |
| Cash on hand | 65,138.88 | 84,307.60 |
| Bank savings | 467,274,657.16 | 731,339,856.01 |
| Other monetary fund | 617,564,170.77 | 41,785,691.23 |
| Total | 1,084,903,966.81 | 773,209,854.84 |
| Including: total amount saving aboard | 6,292,429.36 | 6,242,072.77 |
Note: among the above mentioned “other monetary fund”, the restricted monetary fund including cash deposit of 0Yuan in total (on 31 Dec. 2019, the restricted monetary fund include cash deposit of 1,719,853.88 Yuan)
(2) Bill receivable
| Item | Ending Balance | Year-end balance of last year |
| Bank acceptance note | 2,900,000.00 | 0.00 |
| Commercial Acceptance Notes | 0.00 | 0.00 |
| Total | 2,900,000.00 | 0.00 |
(3) Account receivable
1. Age analysis
| Account age | Ending Balance | Year-end balance of last year |
| Within one year | 132,034,578.25 | 178,147,691.32 |
| 1 to 2 years | ||
| 2 to 3 years | ||
| Over 3 years | 5,769,529.84 | 5,769,529.84 |
| Subtotal | 137,804,108.09 | 183,917,221.16 |
| Less: Bad debt provision | 5,766,640.84 | 5,766,640.84 |
| Total | 132,037,467.25 | 178,150,580.32 |
2. According to accrual method for bad debts
| Category | Ending Balance |
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| With single provision for bad debts | 5,766,640.84 | 4.18 | 5,766,640.84 | 100.00 | |
| With bad debt provision accrual based on similar credit risk characteristics of a portfolio | 132,037,467.25 | 95.82 | 132,037,467.25 | ||
| Total | 137,804,108.09 | 100.00 | 5,766,640.84 | 4.18 | 132,037,467.25 |
| Category | Year-end balance of last year | |||||
| Book balance | Bad debt provision | Book value | ||||
| Amount | Ratio (%) | Amount | Accrual ratio (%) | |||
| With single provision for bad debts | 5,766,640.84 | 3.14 | 5,766,640.84 | 100.00 | ||
| With bad debt provision accrual based on similar credit risk characteristics of a portfolio | 178,150,580.32 | 96.86 | 178,150,580.32 | |||
| Total | 183,917,221.16 | 100.00 | 5,766,640.84 | 3.14 | 178,150,580.32 | |
With single provision for bad debts:
| Name | Ending Balance | |||
| Book amount | Bad debt provision | Accrual proportion (%) | Causes | |
| Shenzhen Petrochemical Products Bonded Trading Co., Ltd. | 3,474,613.06 | 3,474,613.06 | 100.00 | Uncollectible in excepted |
| Zhongji Construction Development Co., | 1,137,145.51 | 1,137,145.51 | 100.00 | Uncollectible in excepted |
| Name | Ending Balance | |||
| Book amount | Bad debt provision | Accrual proportion (%) | Causes | |
| Ltd. | ||||
| Shenzhen Fuhuade Power Co., Ltd | 800,000.00 | 800,000.00 | 100.00 | Uncollectible in excepted |
| Other | 354,882.27 | 354,882.27 | 100.00 | Uncollectible in excepted |
| Total | 5,766,640.84 | 5,766,640.84 | 100.00 | |
Provision for bad debts by portfolio：
Provision by portfolio：
| Name | Ending balance | ||
| Account receivable | Bad debt provision | Accrual proportion (%) | |
| With minor credit risk | 132,037,467.25 | 0.00 | |
Recognition standards and specifications on provisions by portfolio:
The account receivable with provision for bad debts by portfolio mainly refers to the amount fromGuangdong Power Grid Co., Ltd., Shenzhen Power Supply Bureau Co., Ltd. and Shenzhen WaterBureau etc., which have minor credit risk and no provision for bad debts.
3. Bad debt provision accrual collected or switch back
| Category | Year-end balance of last year | Current amount changed | Ending Balance | ||
| Accrual | Collected or switch back | Rewrite or write-off | |||
| With single provision for bad debts | 5,766,640.84 | 5,766,640.84 | |||
There is no receivable with significant recovery or reversal amount of bad debt provision in thecurrent period.
4. Account receivable without actual charge off in the period
5. Top 5 receivables at ending balance by arrears party
Total period-end balance of top five receivables by arrears party amounting to129,063,847.54 Yuan, takes 93.66 percent of the total account receivable at period-end, baddebt provision accrual correspondingly at period-end amounting as 0 Yuan
6. No accounts receivable terminated recognition due to transfer of financial assets at the end
of the period
(4) Account paid in advance
1. Account paid in advance classified according to age
| Age | Ending Balance | Year-end balance of last year | ||
| Book balance | Proportion (%) | Book balance | Proportion (%) | |
| Within 1year | 28,934,955.72 | 88.09 | 69,896,494.56 | 99.84 |
| 1 to 2years | 3,820,156.23 | 11.63 | 15,600.00 | 0.02 |
| 2 to 3years | 32,000.00 | 0.05 | ||
| Over 3 years | 93,586.94 | 0.28 | 61,586.94 | 0.09 |
| Total | 32,848,698.89 | 100.00 | 70,005,681.50 | 100.00 |
2. Top five accounts paid in advance at period-end balance listed by object
| Paid in advance to | Book balance | Proportion in total book balance of accounts paid in advance (%) |
| Guangdong sales branch of CNOOC Gas Power Group Co., Ltd. | 22,631,736.13 | 68.90 |
| Shenzhen Gas Group Co., Ltd. | 3,820,156.23 | 11.63 |
| Guangzhou Zike Environmental Protection Technology Co., Ltd. | 802,500.00 | 2.44 |
| Xinao Energy Trading Co., Ltd. | 351,988.63 | 1.07 |
| Yongcheng Property Insurance Co., Ltd. Shenzhen Branch | 161,674.43 | 0.49 |
| Total | 27,768,055.42 | 84.53 |
(5) Other account receivable
| Item | Book balance | Year-end balance of last year |
| Interest receivable | ||
| Dividend receivable | ||
| Other account receivable | 80,837,116.58 | 32,321,826.94 |
| Total | 80,837,116.58 | 32,321,826.94 |
1. Other account receivable
(1) Age analysis
| Account age | Book balance | Year-end balance of last year |
| Within one year | 50,107,926.26 | 4,589,653.32 |
| 1 to 2 years | 1,215,311.98 | 1,223,336.54 |
| 2 to 3 years | 2,758,753.80 | 3,414,019.37 |
| Over 3 years | 58,587,544.98 | 54,927,238.15 |
| Subtotal | 112,669,537.02 | 64,154,247.38 |
| Less: Bad debt provision | 31,832,420.44 | 31,832,420.44 |
| Total | 80,837,116.58 | 32,321,826.94 |
(2) By category
| Category | Book balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| With single provision for bad debts | 32,525,936.22 | 28.87 | 31,832,420.44 | 97.87 | 693,515.78 |
| With bad debt provision accrual based on similar credit risk characteristics of a portfolio | 80,143,600.80 | 71.13 | 80,143,600.80 | ||
| Total | 112,669,537.02 | 100.00 | 31,832,420.44 | 28.25 | 80,837,116.58 |
| Category | Year-end balance of last year | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| With single provision for bad debts | 32,525,936.22 | 50.70 | 31,832,420.44 | 97.87 | 693,515.78 |
| With bad debt provision | 31,628,311.16 | 49.30 | 31,628,311.16 | ||
| Category | Year-end balance of last year | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| accrual based on similar credit risk characteristics of a portfolio | |||||
| Total | 64,154,247.38 | 100.00 | 31,832,420.44 | 49.62 | 32,321,826.94 |
With single provision for bad debts:
| Name | Book balance | |||
| Book balance | Bad debt provision | Accrual ratio （%） | Accrual reasons | |
| Huiyang Kangtai Industrial Company | 14,311,626.70 | 14,311,626.70 | 100.00 | Un-collectable in excepted |
| Shandong Jinan Generation Equipment Plant | 3,560,000.00 | 3,560,000.00 | 100.00 | Un-collectable in excepted |
| Individual income tax | 2,470,039.76 | 2,470,039.76 | 100.00 | Un-collectable in excepted |
| Dormitory amount receivable | 2,083,698.16 | 1,736,004.16 | 83.31 | Some un-collectable in excepted |
| Personal receivables | 7,498,997.87 | 7,498,997.87 | 100.00 | Un-collectable in excepted |
| Deposit receivable | 1,658,796.73 | 1,312,974.95 | 79.15 | Some un-collectable in excepted |
| Other | 942,777.00 | 942,777.00 | 100.00 | Un-collectable in excepted |
| Total | 32,525,936.22 | 31,832,420.44 | 97.87 | |
Provision for bad debts by portfolio：
Provision by portfolio：
| Name | Ending balance | ||
| Other account receivable | Bad debt provision | Accrual proportion (%) | |
| With minor credit risk | 80,143,600.80 | ||
Recognition standards and specifications on provisions by portfolio:
The Company believes that the credit risk of other account receivable with no impairment in the
single assessment is relatively low, no provision for bad debts, unless there is an evidence that acertain other account receivable is at greater credit risk.
(3) Accrual of bad debt provision
| Bad debt provision | Phases I | Phases II | Phases III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance at last year-end | 31,832,420.44 | 31,832,420.44 | ||
| Book balance of other account receivable at year-begin | ||||
| ——Turn to phase II | ||||
| ——Turn to phase III | ||||
| ——Return to Phase II | ||||
| ——Return to Phase I | ||||
| Current accrual | ||||
| Current switch back | ||||
| Rewrite in the period | ||||
| Write-off in the period | ||||
| Other changes | ||||
| Book balance | 31,832,420.44 | 31,832,420.44 |
(4) Bad debt provision accrual collected or switch-back in the period
| Category | Year-end balance of last year | Current amount changed | Book balance | ||
| Accrual | Collected or switch back | Rewrite or write-off | |||
| Bad debt provision for other receivables | 31,832,420.44 | 31,832,420.44 | |||
(5) No other accounts receivable that had actually written off in the period
(6) By nature
| Nature | Ending book balance | Book balance at last year-end |
| Dormitory receivables | 2,083,698.16 | 2,083,698.16 |
| Deposit receivable | 8,114,769.72 | 8,114,769.72 |
| Personal receivables | 10,625,884.03 | 10,625,884.03 |
| Co management account | 13,243,635.56 | 13,114,012.69 |
| Accounts receivable of Huidong Server | 8,432,761.42 | 9,060,361.44 |
| Receivables from equity transfer | 44,990,000.00 | - |
| Other | 25,178,788.13 | 21,155,521.34 |
| Total | 112,669,537.02 | 64,154,247.38 |
(7) Top five other account receivables at period-end balance listed by arrears party
| Name of the company | Nature | Ending balance | Age | Proportion in total period-end balance of other account receivable (%) | Period-end balance of bad debt provision |
| Shenzhen Gas Group Co., Ltd. | Equity transfer | 44,990,000.00 | Within 1 years | 39.93 | |
| Huidong Server Harbor Comprehensive Development Co., Ltd. | Intercourse fund | 21,676,396.98 | Over 3 years | 19.24 | |
| Huiyang County Kangtai Industrial Company | Other | 14,311,626.70 | Over 3 years | 12.70 | 14,311,626.70 |
| China Machinery Engineering Corporation | Guarantee money | 4,906,822.44 | Within 3 years | 4.36 | |
| Shandong Jinan Power Equipment Factory | Other | 3,560,000.00 | Over 3 years | 3.16 | 3,560,000.00 |
| 89,444,846.12 | 79.39 | 17,871,626.70 |
(8) No receivables involving government subsidies at the end of the period
(9) No other receivables terminated recognition due to transfer of financial assets
(6) Inventory
1. Classification
| Item | Ending Balance | Year-end balance of last year | ||||
| Book balance | Inventory falling price reserves | Book value | Book balance | Inventory falling price reserves | Book value | |
| Raw materials | 150,562,248.76 | 42,008,350.54 | 108,553,898.22 | 171,828,426.19 | 47,141,982.58 | 124,686,443.61 |
Note: After the sale of the equity of Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd. this year, ShenNan Dian (Dongguan) Weimei Electric Power Co., Ltd. will no longer be included in the scope of consolidationfrom April 30, 2020, and the original assets and liabilities have been transferred out.
2. Inventory falling price reserves
| Item | Year-end balance of last year | Current increased | Current decreased | Ending Balance | ||
| Accrual | Other | Switch-back or write-off | Changes in scope of consolidation | |||
| Raw materials | 47,141,982.58 | 5,133,632.04 | 42,008,350.54 | |||
3. Accrual basis for the depreciation provision of inventory and reasons of switch-back orwrite-off in the year
| Item | Accrual basis | Reasons of switch-back | Reasons of write-off |
| Raw materials | Cost higher the net realizable value | Not applicable | Spare parts on sale |
(7) Other current assets
| Item | Ending Balance | Opening Balance |
| VAT input tax deductible | 341,415,281.38 | 349,953,491.34 |
| Enterprise income tax paid in advance | 6,583,089.98 | 6,583,089.98 |
| Financial products | 139,674,162.93 | 86,000,000.00 |
| Item | Ending Balance | Opening Balance |
| Accrual interest of time deposit | 4,057,800.00 | 2,670,150.01 |
| Other | 30,000.00 | 30,000.00 |
| Total | 491,760,334.29 | 445,236,731.33 |
(8) Long-term equity investment
| The invested entity | Year-end balance of last year | Changes +,- | Ending Balance | Period-end balance of depreciation reserves | |||||||
| Additional investment | Disinvestment | Investment gains/losses recognized by equity method | Other comprehensive income adjustment | Other changes in equity | Declaration of cash dividends or profits | Provision for impairment | Other | ||||
| 1. Joint venture | |||||||||||
| Huidong Server Harbor Comprehensive Development Company (“Huidong Server” for short) | 14,619,203.03 | -243,622.43 | 14,375,580.60 | ||||||||
| Total | 14,619,203.03 | -243,622.43 | 14,375,580.60 | ||||||||
(9) Other equity instrument investment
1. Other equity instrument investment
| Item | Book balance |
| CPI Jiangxi Nuclear Power Company | 60,615,000.00 |
| Shenzhen Petrochemical Oil Bonded Trade Co., Ltd. - investment cost | 2,500,000.00 |
| Shenzhen Petrochemical Oil Bonded Trade Co., Ltd. - change in fair value | -2,500,000.00 |
| Total | 60,615,000.00 |
2. Non trading equity instrument investment
| Item | Dividend income recognized in the current period | Accumulated gain | Accumulated loss | Retained earnings transferred from other comprehensive income | Designated as the investment measured at fair value and whose changes reckoned into other comprehensive income (explain reasons) | Reasons of retained earnings transferred from other comprehensive income |
| Jiangxi Nuclear Power Co., Ltd. | intents to holding for a long-term | |||||
| Shenzhen Petrochemical Oil Bonded Trade Co., Ltd. | -2,500,000.00 | intents to holding for a long-term | ||||
| Total | -2,500,000.00 |
(10) Investment real estate
1. Investment real estate measured at cost
| Item | House and building | Land use right | Construction in progress | Total |
| 1. Original book value | ||||
| (1) Year-end balance of last year | 9,708,014.96 | 9,708,014.96 | ||
| (2) Current increased | ||||
| (3) Current decreased | ||||
| (4) Ending Balance | 9,708,014.96 | 9,708,014.96 | ||
| 2. Accumulated depreciation and accumulated amortization | - | |||
| (1) Year-end balance of last year | 7,306,687.96 | 7,306,687.96 | ||
| (2) Current increased | 98,068.80 | 98,068.80 | ||
| —Accrual or amortization | 98,068.80 | 98,068.80 | ||
| (3) Current decreased | - | - | ||
| (4) Book balance | 7,404,756.76 | 7,404,756.76 | ||
| 3. Depreciation provision | ||||
| (1) Year-end balance of last year | ||||
| (2) Current increased | ||||
| (3) Current decreased | ||||
| (4) Book balance | ||||
| 4. Book value | ||||
| (1) Period-end book value | 2,303,258.20 | 2,303,258.20 | ||
| (2) Year-begin book value | 2,401,327.00 | 2,401,327.00 |
(11) Fixed assets
1. Fixed assets and disposal of fixed assets
| Item | Ending Balance | Year-end balance of last year |
| Fixed assets | 954,992,268.00 | 1,381,675,872.68 |
| Disposal of fixed assets | ||
| Total | 954,992,268.00 | 1,381,675,872.68 |
2. Fixed assets
| Item | House and buildings | Machinery equipment | Transportation tools | Other equipment | Total |
| I. Original book value | |||||
| 1. Opening balance | 501,321,101.48 | 4,079,001,987.60 | 16,336,684.19 | 55,807,562.91 | 4,652,467,336.18 |
| 2. Increased in the year | 3,270,619.85 | 71,238.94 | 873,334.63 | 4,215,193.42 | |
| (1) Purchase | 823,506.59 | 167,066.26 | 990,572.85 | ||
| (2) Construction in progress transfer-in | 2,447,113.26 | 71,238.94 | 706,268.37 | 3,224,620.57 | |
| (3) Increase in business combination | |||||
| 3. Decreased in the year | 75,311,278.51 | 912,852,652.58 | 1,677,249.73 | 1,101,001.76 | 990,942,182.58 |
| (1) Disposal or scrapping | 0.00 | 11,100.00 | 11,100.00 | ||
| (2) Reduction of consolidation scope changes | 75,311,278.51 | 912,852,652.58 | 1,677,249.73 | 1,089,901.76 | 990,931,082.58 |
| Item | House and buildings | Machinery equipment | Transportation tools | Other equipment | Total |
| 4. Ending Balance | 426,009,822.97 | 3,169,419,954.87 | 14,730,673.40 | 55,579,895.78 | 3,665,740,347.02 |
| II. Accumulated depreciation | |||||
| 1. Opening balance | 308,704,855.95 | 2,768,225,963.03 | 9,246,358.34 | 43,480,376.06 | 3,129,657,553.38 |
| 2. Increased in the year | 5,651,134.50 | 18,473,218.63 | 726,108.03 | 954,942.33 | 25,805,403.49 |
| (1) Accrual | 5,651,134.50 | 18,473,218.63 | 726,108.03 | 954,942.33 | 25,805,403.49 |
| 3. Decreased in the year | 44,544,371.88 | 505,772,982.44 | 1,268,277.91 | 780,774.36 | 552,366,406.59 |
| (1) Disposal or scrapping | 9,990.00 | 9,990.00 | |||
| (2) Reduction of consolidation scope changes | 44,544,371.88 | 505,772,982.44 | 1,268,277.91 | 770,784.36 | 552,356,416.59 |
| 4. Book balance | 269,811,618.57 | 2,280,926,199.22 | 8,704,188.46 | 43,654,544.03 | 2,603,096,550.28 |
| III. Impairment provision | |||||
| 1. Opening balance | 14,860,025.13 | 126,273,884.99 | 141,133,910.12 |
| Item | House and buildings | Machinery equipment | Transportation tools | Other equipment | Total |
| 2. Increased in the year | |||||
| (1) Accrual | |||||
| 3. Decreased in the year | 5,059,785.83 | 28,422,595.55 | 33,482,381.38 | ||
| (1) Disposal or scrapping | |||||
| (2) Reduction of consolidation scope changes | 5,059,785.83 | 28,422,595.55 | 33,482,381.38 | ||
| 4. Book balance | 9,800,239.30 | 97,851,289.44 | 107,651,528.74 | ||
| IV. Book value | |||||
| (1) Closing book value | 146,397,965.10 | 790,642,466.21 | 6,026,484.94 | 11,925,351.75 | 954,992,268.00 |
| (2) Opening book value | 177,756,220.40 | 1,184,502,139.58 | 7,090,325.85 | 12,327,186.85 | 1,381,675,872.68 |
3. Idle fixed assets temporary
| Item | Original book value | Accumulated depreciation | Impairment provision | Book value | Note |
| Housing & buildings | 127,893,412.10 | 98,010,753.95 | 13,948,439.04 | 15,934,219.11 | |
| Machinery equipment | 523,528,339.27 | 452,630,912.68 | 32,087,951.59 | 38,809,475.00 | |
| Transportation equipment | 256,300.00 | 230,670.00 | 25,630.00 | ||
| Total | 651,678,051.37 | 550,872,336.63 | 46,036,390.63 | 54,769,324.11 |
4. No fixed assets acquired by financing lease
5. No fixed assets acquired by operating lease
6. Fixed assets without property rights certificate
| Item | Book value | Reasons for failing to complete the property rights certificate |
| Booster station | 3,962,705.44 | Procedures uncompleted |
| Steam turbine workshop | 1,437,359.56 | Procedures uncompleted |
| Chemical water tower | 2,363,171.86 | Procedures uncompleted |
| Treatment shop for heavy oil | 464,359.97 | Procedures uncompleted |
| Start-up boiler house | 104,559.07 | Procedures uncompleted |
| Fire pump room | 242,318.01 | Procedures uncompleted |
| Circulating water pump house | 1,520,701.82 | Procedures uncompleted |
| Comprehensive building | 2,589,240.59 | Procedures uncompleted |
| Production and inspection building | 4,396,371.57 | Procedures uncompleted |
| Administrative building | 4,520,121.49 | Procedures uncompleted |
| Mail room of the main entrance | 183,112.49 | Procedures uncompleted |
| Chemical water treatment workshop | 232,960.00 | Procedures uncompleted |
| Cooling tower | 673,259.25 | Procedures uncompleted |
| Comprehensive building canteen | 276,091.29 | Procedures uncompleted |
| Comprehensive building | 443,246.19 | Procedures uncompleted |
| Total | 23,409,578.60 |
(12) Construction in progress
1. Construction in progress and Engineering materials
| Item | Ending Balance | Year-end balance of last year |
| Construction in progress | 60,831,928.29 | 66,474,630.23 |
| Engineering materials | ||
| Total | 60,831,928.29 | 66,474,630.23 |
2. Construction in progress
| Item | Ending Balance | Year-end balance of last year | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Cogeneration | 57,946,875.63 | 57,946,875.63 | 63,151,182.64 | 63,151,182.64 | ||
| Oil to Gas Works | 13,230,574.53 | 13,230,574.53 | 32,871,600.26 | 32,871,600.26 | ||
| Technical innovation | 2,217,378.76 | 2,217,378.76 | 3,061,557.07 | 3,061,557.07 | ||
| Other | 667,673.90 | 667,673.90 | 261,890.52 | 261,890.52 | ||
| Total | 74,062,502.82 | 13,230,574.53 | 60,831,928.29 | 99,346,230.49 | 32,871,600.26 | 66,474,630.23 |
3. Changes of significant projects in construction in the year
| Item | Budget | Opening balance | Increase of this period | Transferred fixed assets in this period | Reduction of consolidation scope changes | Other decrease in the period | Closing balance | Proportion of accumulative project investment in budget (%) | Project progress (%) | Accumulative amount of capitalization of interest | Including: capitalization of interest | Rate of interest capitalization (%) | Capital sources |
| Cogeneration | 60,000,000.00 | 63,151,182.64 | 45,871.71 | 5,250,178.72 | 57,946,875.63 | 96.58 | 6,476,185.46 | Self-raised and borrowing | |||||
| Oil to Gas Works | 74,400,000.00 | 32,871,600.26 | 19,641,025.73 | 13,230,574.53 | 63.76 | 63.76 | Self-raised | ||||||
| Technical innovation | 3,061,557.07 | 1,066,319.79 | 1,910,498.10 | 2,217,378.76 | Not applicable | Not applicable | Self-raised | ||||||
| Other | 261,890.52 | 1,719,905.85 | 1,314,122.47 | 667,673.90 | Self-raised | ||||||||
| Total | 134,400,000.00 | 99,346,230.49 | 2,832,097.35 | 3,224,620.57 | 5,250,178.72 | 19,641,025.73 | 74,062,502.82 | 6,476,185.46 |
4. No accrual of impairment provision for Construction in progress in the period
(13) Intangible assets
1. Intangible assets
| Item | Land use right | Software | Total |
| I. Original book value | |||
| 1. Opening balance | 91,355,995.46 | 3,577,588.80 | 94,933,584.26 |
| 2. Increased in the year | - | ||
| (1) Purchase | - | - | |
| 3. Decreased in the year | 30,542,000.70 | - | 30,542,000.70 |
| (1) Reduction of consolidation scope changes | 30,542,000.70 | - | 30,542,000.70 |
| 4. Ending Balance | 60,813,994.76 | 3,577,588.80 | 64,391,583.56 |
| II. Accumulated depreciation | |||
| 1. Opening balance | 48,080,331.33 | 3,251,086.49 | 51,331,417.82 |
| 2. Increased in the year | 388,916.55 | 97,067.10 | 485,983.65 |
| (1) Accrual | 388,916.55 | 97,067.10 | 485,983.65 |
| 3. Decreased in the year | 8,759,936.73 | - | 8,759,936.73 |
| (1) Reduction of consolidation scope changes | 8,759,936.73 | - | 8,759,936.73 |
| 4. Book balance | 39,709,311.15 | 3,348,153.59 | 43,057,464.74 |
| III. Impairment provision | |||
| 1. Opening balance | - | - | - |
| 2. Increased in the year | |||
| (1) Accrual | - | - | - |
| 3. Decreased in the year | |||
| (1) Disposal | - | - | - |
| 4. Book balance | - | - | - |
| IV. Book value | |||
| (1) Closing book value | 21,104,683.61 | 229,435.21 | 21,334,118.82 |
| (2) Opening book value | 43,275,664.13 | 326,502.31 | 43,602,166.44 |
2. Land use rights without property rights certificate
| Item | Book value | Reasons for failing to complete the property rights certificate |
| Land use right of the wharf and pipe gallery | 530,733.25 | Property rights certificate is undergoing |
(14) Long-term deferred expenses
| Item | Year-end balance of last year | Current increased amount | Amortized in the Period | Other decrease | Book balance |
| Exhibition hall decoration amount | 1,174,171.16 | 125,971.38 | 1,048,199.78 |
(15) Deferred income tax assets and deferred income tax liabilities
1. Deferred income tax assets without offsetting
| Item | Ending Balance | Year-end balance of last year | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Bad debt provision for account receivable | 5,628,573.77 | 1,400,153.44 | 5,628,573.77 | 1,400,153.44 |
| Bad debt provision for other receivable | 723,585.00 | 180,896.25 | 723,585.00 | 180,896.25 |
| Changes in fair value of other equity instrument investments | 2,500,000.00 | 625,000.00 | 2,500,000.00 | 625,000.00 |
| Other | ||||
| Total | 8,852,158.77 | 2,206,049.69 | 8,852,158.77 | 2,206,049.69 |
(16) Other non-current assets
| Item | Ending Balance | Year-end balance of last year | ||||
| Book balance | Depreciation reserve | Book value | Book balance | Depreciation reserve | Book value | |
| Project of LNG | 22,882,181.78 | 22,882,181.78 | ||||
| Total | 22,882,181.78 | 22,882,181.78 | ||||
(17) Short-term loans
1. Classification
| Item | Ending Balance | Year-end balance of last year |
| Guarantee loans | 300,000,000.00 | |
| Credit loans | 754,233,285.00 | 580,000,000.00 |
| Accrued interest | 1,246,849.11 | 1,075,378.48 |
| Total | 755,480,134.11 | 881,075,378.48 |
(18) Account payable
1. Account payable
| Item | Ending Balance | Year-end balance of last year |
| Materials | 2,854,019.71 | 12,180,417.48 |
| Electricity | 1,884,315.07 | 1,760,985.99 |
| Labor | 6,101,200.00 | 3,102,530.32 |
| Others | 2,521,658.17 | 2,827,168.62 |
| Total | 13,361,192.95 | 19,871,102.41 |
2. There is no major amount payable with over one year age at end of the period
(19)Payroll payable
1. Payroll payable
| Item | Year-end balance of last year | Current increased | Current Decreased | Ending Balance |
| Short-term remuneration | 54,801,004.42 | 57,502,762.80 | 73,035,130.07 | 39,268,637.15 |
| Post-employment | 407,428.11 | 6,482,783.84 | 5,113,650.54 | 1,776,561.41 |
| Item | Year-end balance of last year | Current increased | Current Decreased | Ending Balance |
| welfare-defined contribution plans | ||||
| Severance Pay | ||||
| Other welfare due within one year | ||||
| Total | 55,208,432.53 | 63,985,546.64 | 78,148,780.61 | 41,045,198.56 |
2. Short-term remuneration
| Item | Year-end balance of last year | Current increased | Current Decreased | Book balance |
| (1) Wages , bonuses, allowances and subsidies | 53,579,116.98 | 44,870,304.70 | 59,821,822.13 | 38,627,599.55 |
| (2) Welfare for workers and staff | 63,050.00 | 413,654.74 | 378,393.74 | 98,311.00 |
| (3) Social insurance | 199,344.99 | 2,418,356.33 | 2,569,608.69 | 48,092.63 |
| Including: Medical insurance | 167,818.74 | 2,351,191.23 | 2,476,620.10 | 42,389.87 |
| Work injury insurance | 13,139.34 | 7,859.44 | 20,962.00 | 36.78 |
| Maternity insurance | 18,386.91 | 59,305.66 | 72,026.59 | 5,665.98 |
| (4) Housing accumulation fund | 614,780.58 | 9,085,609.07 | 9,549,296.93 | 151,092.72 |
| (5) Labor union expenditure and personnel education expense | 344,711.87 | 714,837.96 | 716,008.58 | 343,541.25 |
| Total | 54,801,004.42 | 57,502,762.80 | 73,035,130.07 | 39,268,637.15 |
3. Defined contribution plans
| Item | Year-end balance of last year | Current increased | Current Decreased | Book balance |
| Item | Year-end balance of last year | Current increased | Current Decreased | Book balance |
| Basic endowment insurance | 394,280.13 | 3,829,721.67 | 4,201,766.55 | 22,235.25 |
| Unemployment insurance | 12,849.98 | 22,162.21 | 34,888.99 | 123.20 |
| Enterprise annuity | 298.00 | 2,630,899.96 | 876,995.00 | 1,754,202.96 |
| Total | 407,428.11 | 6,482,783.84 | 5,113,650.54 | 1,776,561.41 |
(20) Taxes payable
| Item | Ending Balance | Year-end balance of last year |
| Enterprise income tax | 475,248.33 | 3,407,074.02 |
| Real estate tax | 1,957,956.15 | 996,166.86 |
| Individual income tax | 1,043,897.37 | 1,550,858.52 |
| Land-use tax of town | 452,439.30 | |
| VAT | 7,538,071.86 | 15,053,172.64 |
| Other | 357,269.39 | 762,001.73 |
| Total | 11,824,882.40 | 21,769,273.77 |
(21) Other account payable
| Item | Ending Balance | Year-end balance of last year |
| Interest payable | ||
| Dividends payable | ||
| Other account payable | 34,163,258.96 | 43,691,472.06 |
| Total | 34,163,258.96 | 43,691,472.06 |
1. Other account payable
(1) Other payable by nature
| Item | Book balance | Year-end balance of last year |
| Engineering funds | 11,861,176.64 | 13,045,165.88 |
| Quality assurance | 6,633,006.27 | 6,825,475.53 |
| Item | Book balance | Year-end balance of last year |
| Accrued expenses | 10,143,950.69 | 10,301,185.40 |
| Equipment fund | 3,718,050.65 | |
| Other | 5,525,125.36 | 9,801,594.60 |
| Total | 34,163,258.96 | 43,691,472.06 |
(2) Other account payable of more than one year is of 18,271,785.62 Yuan (December 31, 2019:
18,303,816.84 Yuan), which is mainly the engineering equipment fund payable and guaranteemoney.
(22) Accrual liability
| Item | Book balance | Year-end balance of last year | Reason |
| Guarantee offering outside | 26,646,056.28 | 26,646,056.28 | |
| Total | 26,646,056.28 | 26,646,056.28 |
Note: On 29 November 2013, Shenzhen Server and Jiahua Building Products (Shenzhen) Co., Ltd. (JiahuaBuilding) signed a supplementary term aiming at equity transfer over equity attribution and division of YapojiaoDock, which belongs to Shenzhen Server, Huidong Server, and Huidong Nianshan Town Government as well as itssubordinate Nianshan Group. In order to solve this remaining historic problem, Shenzhen Server saved RMB12,500,000.00 in condominium deposit account as guarantee. In addition, Server pledged its 20% of equity holdingfrom Huidong Server to Jiahua Architecture with pledge duration of 2 years. The amount of collateral on loanscould not exceed RMB 15,000,000.00. Relevant losses with the event concerned predicted amounting to RMB 27,500,000.00 by the Group. The costs for lawyers from 2014 to June 2020 and the costs for problem left over byhistory amounting to 853,943.72 Yuan, ending balance amounted as 26,646,056.28 Yuan.
(23) Deferred income
| Item | Year-end balance of last year | Current increased | Current decreased | Ending Balance | Reasons |
| Government subsidy | 108,507,683.52 | 11,549,926.48 | 96,957,757.04 |
Items with government subsidy involved:
| Liability | Opening balance | Subsidy amount newly increased in the current period | Amount included in current profit and loss | Reduction of consolidation scope changes | Book balance | Assets related/income related |
| Subsidy for low-nitrogen transformation | 25,165,130.64 | 261,374.29 | 3,736,754.75 | 21,167,001.60 | Assets related | |
| Information construction | 86,666.60 | 30,588.24 | 56,078.36 | Assets related | ||
| Support fund of recycling economy for sludge drying | 7,451,273.95 | 323,501.46 | 7,127,772.49 | Assets related | ||
| Treasury subsidies for sludge drying | 2,826,250.00 | 127,500.00 | 2,698,750.00 | Assets related | ||
| Special funds for energy conservation and emission reduction | 684,223.30 | 57,018.66 | 627,204.64 | Assets related | ||
| Funded of energy efficiency improvement for electric machine | 401,760.00 | 17,280.00 | 384,480.00 | Assets related | ||
| Subsidy for quality promotion of the air environment in Shenzhen | 67,262,379.03 | 2,365,909.08 | 64,896,469.95 | Assets related | ||
| Cogeneration | 4,630,000.00 | 4,630,000.00 | Assets related | |||
| Total | 108,507,683.52 | 3,183,171.73 | 8,366,754.75 | 96,957,757.04 |
(24) Share capital
| Item | Year-end balance of last year | Changes in this period(+ -) | Ending Balance | ||||
| New shares issued | Bonus shares | Capitalizing from reserves | Other | Subtotal | |||
| Item | Year-end balance of last year | Changes in this period(+ -) | Ending Balance | ||||
| New shares issued | Bonus shares | Capitalizing from reserves | Other | Subtotal | |||
| Total shares | 602,762,596.00 | 602,762,596.00 | |||||
(25) Capital reserve
| Item | Year-end balance of last year | Current increased | Current decreased | Book balance |
| Capital premium（Share 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 |
(26) Other comprehensive income
| Item | Year-end balance of last year | Current period | Book balance | ||||
| Account before income tax in the year | Less: written in other comprehensive income in previous period and carried forward to gains and losses in current period | Less : income tax expense | Belong to parent company after tax | Belong to minority shareholders after tax | |||
| 1. Other comprehensive income items which will not be reclassified subsequently to profit of loss | -2,500,000.00 | -2,500,000.00 | |||||
| Including: changes of the defined benefit plans that re-measured | |||||||
| Other comprehensive income under equity method that cannot be transfer to gain/loss | |||||||
| Change of fair value of investment in other equity instrument | -2,500,000.00 | -2,500,000.00 | |||||
| Fair value change of enterprise's credit risk | |||||||
| Item | Year-end balance of last year | Current period | Book balance | ||||
| Account before income tax in the year | Less: written in other comprehensive income in previous period and carried forward to gains and losses in current period | Less : income tax expense | Belong to parent company after tax | Belong to minority shareholders after tax | |||
| 2. Other comprehensive income items which will be reclassified subsequently to profit or loss | |||||||
| including: other comprehensive income under equity method that can transfer to gain/loss | |||||||
| Change of fair value of other debt investment | |||||||
| Amount of financial assets re-classify to other comprehensive income | |||||||
| Credit impairment provision for other debt investment | |||||||
| Cash flow hedging reserve | |||||||
| Item | Year-end balance of last year | Current period | Book balance | ||||
| Account before income tax in the year | Less: written in other comprehensive income in previous period and carried forward to gains and losses in current period | Less : income tax expense | Belong to parent company after tax | Belong to minority shareholders after tax | |||
| Translation differences arising on translation of foreign currency financial statements | |||||||
| Total other comprehensive income | -2,500,000.00 | -2,500,000.00 | |||||
(27) Surplus reserve
| Item | Year-end balance of last year | Current increased | Current decreased | Book balance |
| Legal 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 |
Note: according to the Company Law and the Articles of Association, the Company takes 10% of the net profitaside as legal surplus reserve. No more provision is made when the accumulated legal surplus reserve exceeds 50%of the registered capital.After provision for legal surplus reserve, the Company can make provision for other surplus reserve. As approved,other surplus reserve can be used to make up for previous loss or increase share capital.
(28) Retained profit
| Item | Current amount | Year-end balance of last year |
| Retained profit of last year before adjusted | 706,830,892.54 | 679,429,935.81 |
| Total retained profit adjusted (increased with +, decreased with -) | 2,500,000.00 | |
| Retained profit at beginning of the year after adjusted | 706,830,892.54 | 681,929,935.81 |
| Add: net profit attributable to shareholders of parent company | 52,040,498.42 | 24,900,956.73 |
| Less: withdrawal of statutory surplus reserve | ||
| Surplus reserves withdrawal | ||
| General risk reserve withdrawal | ||
| Common Stock dividend payable | 12,055,251.92 | |
| Dividend of common shares transfer as share capital | ||
| Retained profit at period-end | 746,816,139.04 | 706,830,892.54 |
(29) Operating income and operating cost
| Item | Current amount | Last-period amount |
| Income | Cost | Income | Cost | |
| Main business | 516,766,342.40 | 453,011,367.34 | 407,283,308.09 | 382,899,068.89 |
| Other business | 1,384,263.81 | 98,068.80 | 841,308.29 | 98,068.80 |
| Total | 518,150,606.21 | 453,109,436.14 | 408,124,616.38 | 382,997,137.69 |
(30) Tax and surcharge
| Item | Current amount | Last-period amount |
| City maintenance tax | 1,383,140.70 | 347,935.14 |
| Education surtax | 994,801.55 | 239,773.87 |
| Real estate tax | 1,208,396.49 | 1,299,068.45 |
| Stamp tax | 249,088.14 | 223,246.10 |
| Environmental protection tax | 52,684.43 | 71,377.28 |
| Land holding tax | 528,926.56 | 622,976.03 |
| Other | 2,070.82 | 21,056.56 |
| Total | 4,419,108.69 | 2,825,433.43 |
(31) Sales expense
| Item | Current amount | Last-period amount |
| Sludge treatment costs | 1,759,061.64 | 2,091,758.08 |
| Salary, welfare and social insurance | 483,096.28 | 211,222.62 |
| Communication expenses | 3,600.00 | 3,600.00 |
| Social expenses | 102,828.00 | 115,344.00 |
| Fleet cost | 14,862.00 | 15,559.00 |
| Inspection charges | 8,254.72 | 5,707.55 |
| Labor insurance fee | 12,146.33 | 10,530.68 |
| Rental fee | 14,400.00 | 14,400.00 |
| Property insurance | 55,981.53 | 49,130.74 |
| Agency engagement fee | 49,056.60 | 37,735.85 |
| Other | 24,116.56 | 11,281.00 |
| Total | 2,527,403.66 | 2,566,269.52 |
(32) Administration expense
| Item | Current amount | Last-period amount |
| Wages | 22,642,057.64 | 23,892,967.48 |
| Rental fee | 3,190,390.04 | 3,288,377.42 |
| Social expenses | 1,215,245.44 | 1,532,058.32 |
| Intermediary agency fee | 769,240.68 | 1,231,759.70 |
| Fleet cost | 1,544,894.98 | 1,007,200.26 |
| Board charges | 643,383.04 | 588,713.32 |
| Depreciation | 3,219,527.40 | 2,735,952.70 |
| Amortization of intangible assets | 438,195.11 | 924,080.54 |
| Environmental protection fee | 112,454.45 | 985,970.24 |
| Food fee | 1,683,299.91 | 1,636,173.21 |
| Corporate culture fee | 466,986.30 | 416,397.26 |
| Property management fee | 476,391.32 | 473,682.63 |
| Office fee | 451,606.20 | 351,693.34 |
| Communication expenses | 584,900.66 | 555,998.52 |
| Business travel expenses | 150,697.01 | 309,115.10 |
| Fee for stock certificate | 268,361.53 | 86,822.94 |
| Union funds | 296,122.92 | 303,547.56 |
| Employee education expenses | 25,496.98 | 55,175.25 |
| Other | 4,857,620.54 | 4,556,178.71 |
| Total | 43,036,872.15 | 44,931,864.50 |
(33) Financial expense
| Item | Current amount | Last-period amount |
| Interest expenses | 18,800,827.68 | 23,542,971.21 |
| Less: capitalized interest | 613,068.55 | |
| Expenses interest | 18,187,759.13 | 23,542,971.21 |
| Less: interest income | 13,142,285.32 | 13,189,605.67 |
| Item | Current amount | Last-period amount |
| Exchange loss (gains is listed with ”-”) | -56,923.92 | -6,301.58 |
| Other | 76,172.31 | 292,203.46 |
| Total | 5,064,722.20 | 10,639,267.42 |
(34) Other Income
| Item | Current amount | Last-period amount |
| Government grants | 8,588,818.18 | 4,962,155.46 |
| Additional deduction on input tax | ||
| Commission for withholding the individual income tax | 166,718.37 | |
| Income from debt restructuring | ||
| Total | 8,755,536.55 | 4,962,155.46 |
Government subsidies included in other income
| Item | Current amount | Last-period amount | Asset related / income related |
| Special Fund Subsidy for Shenzhen Atmospheric Environmental Quality Improvement | 2,365,909.08 | 1,201,651.54 | Asset related |
| Subsidy for low-nitrogen transformation | 261,374.29 | 251,403.55 | Asset related |
| Enterprise information construction project funding | 30,588.24 | 30,588.24 | Asset related |
| Subsidies for energy-saving technological transformation projects | 57,018.66 | 57,018.66 | Asset related |
| Treasury subsidies for sludge drying | 127,500.00 | 127,500.00 | Asset related |
| Support fund of recycling economy for sludge drying | 323,501.46 | 323,501.46 | Asset related |
| Funded of energy efficiency improvement for electric machine | 17,280.00 | 17,280.00 | Asset related |
| VAT rebates | 1,134,065.17 | 1,753,212.01 | Income related |
| Unemployment insurance refund of affected enterprises | - | Income related |
| Item | Current amount | Last-period amount | Asset related / income related |
| 4,171,581.28 | |||
| Subsidies for further steady growth of funding projects | 100,000.00 | Income related | |
| Supporting funds of office occupancy for listed companies | 1,000,000.00 | Income related | |
| Reward to encouraging small and medium-sized enterprise to growth as a scale-sized company | 200,000.00 | Income related | |
| Total | 8,588,818.18 | 4,962,155.46 |
(35) Investment income
| Item | Current amount | Last-period amount |
| Long-term equity investment income by equity | -243,622.43 | -677,552.37 |
| Investment income from disposal of long-term investments | 33,534,881.55 | |
| Total | 33,291,259.12 | -677,552.37 |
(36)Income from disposal of assets
| Item | Current amount | Last-period amount | Amount reckoned into non-recurring gains/losses of the Period |
| Profit and loss on disposal of fixed assets | -417,926.32 | ||
| Profit and loss on disposal of construction in process | 828,535.66 | 828,535.66 | |
| Total | 828,535.66 | -417,926.32 | 828,535.66 |
(37) Non-operating revenue
| Item | Current amount | Last-period amount | Amount reckoned into non-recurring gains/losses of the Period |
| Sales of waste materials | 98,666.50 | ||
| Other | 4,753.84 | 4,500.00 | 4,753.84 |
| Total | 4,753.84 | 103,166.50 | 4,753.84 |
(38) Non-operating expenditure
| Item | Current amount | Last-period amount | Amount reckoned into non-recurring gains/losses of the Period |
| External donation | 10,000.00 | 10,000.00 | |
| Loss of scrap from non-current assets | 1,110.00 | 1,110.00 | |
| Other | 46,124.97 | ||
| Total | 11,110.00 | 46,124.97 | 11,110.00 |
(39) Income tax expense
| Item | Current amount | Last-period amount |
| Current income tax calculated in accordance with tax laws and related regulations | 610,366.52 | 1,157,865.76 |
(40) Cash flow statement
1. Cash received with other operating activities concerned
| Item | Current amount | Last-period amount |
| Government subsidy collected | 4,688,786.13 | 39,297,273.00 |
| Intercourse funds collected | 13,431,789.29 | |
| Interest income | 10,929,678.85 | 12,982,668.91 |
2. Other cash paid in relation to operation activities
| Item | Current amount | Last-period amount |
| Hiring intermediary agency fee | 769,240.68 | 1,231,759.70 |
| Board fee | 643,383.04 | 588,713.32 |
| Rental fees | 3,850,120.43 | 3,762,060.05 |
| Communication fee | 1,215,245.44 | 1,532,058.32 |
| Fleet cost | 1,544,894.98 | 1,007,200.26 |
| Corporate culture fee | 466,986.30 | 416,397.26 |
| Communication fee | 584,900.66 | 555,998.52 |
| Environmental protection fee | 112,454.45 | 985,970.24 |
| Other | 11,968,246.77 | 16,424,022.91 |
| Total | 21,155,472.75 | 26,504,180.58 |
3. Cash received from other investment activities
| Item | Current amount | Last-period amount |
| Repayment of loan from Huidong Serve | 800,000.00 |
4. Other cash paid related to investment activities
| Item | Current amount | Last-period amount |
| The cash difference bewteen the cash balance of Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd and the cash received from the disposal of the equity on the date when disposing | 12,577,163.02 |
5. Other cash received in relation to financing activities
| Item | Current amount | Last-period amount |
| Margin received | 7,303,338.86 | |
| Received a loan from Shenzhen Gas Group Co., Ltd. | 170,000,000.00 | |
| Total | 170,000,000.00 | 7,303,338.86 |
| Other | 6,887,829.91 | 4,321,781.62 |
| Total | 22,506,294.89 | 70,033,512.82 |
(41) Supplementary information to statement of cash flow
1. Supplementary information to statement of cash flow
| Supplementary information | Current amount | Last-period amount |
| 1. Net profit adjusted to cash flow of operation activities | ||
| Net profit | 52,251,672.02 | -33,069,503.64 |
| Add: Assets impairment provision | ||
| Depreciation of fixed assets | 25,805,403.49 | 44,801,828.95 |
| Amortization of intangible assets | 485,983.65 | 1,232,100.02 |
| Amortization of long-term deferred expenses | 125,971.38 | 22,548.81 |
| Loss from disposing fixed assets, intangible assets and other long-term assets (income) | -828,535.66 | 417,926.32 |
| Loss on retirement of fixed assets | ||
| Financial expense (income) | 18,800,827.68 | 23,542,971.21 |
| Investment loss (income) | 33,291,259.12 | 677,552.37 |
| Decrease of deferred income tax asset( (increase) | ||
| Decrease of inventory (increase) | 16,132,545.39 | 278,786.02 |
| Decrease of operating receivable accounts (increase) | -18,919,356.88 | 4,043,360.79 |
| Increase of operating payable accounts (decrease) | -57,209,208.73 | 14,269,806.04 |
| Net cash flow arising from operating activities | 69,936,561.46 | 56,217,376.89 |
| 2. Material investment and financing not involved in cash flow | ||
| Debt capitalization | ||
| Convertible company bond due within one year | ||
| Fixed assets acquired under finance leases | ||
| 3. Net change of cash and cash equivalents: | ||
| Closing balance of cash and cash equivalent | 1,084,903,966.81 | 1,029,883,840.43 |
| Less: Opening balance of cash and cash equivalent | 771,490,000.96 | 914,956,611.70 |
| Net increasing of cash and cash equivalents | 313,413,965.85 | 114,927,228.73 |
2. Composition of cash and cash equivalent
| Item | Book balance | Year-end balance of last year |
| I. Cash | 324,903,966.81 | 381,490,000.96 |
| Including: Cash on hand | 65,138.88 | 84,307.60 |
| Bank savings available for payment needed | 317,274,657.16 | 381,339,856.01 |
| Other monetary capital available for payment needed | 7,564,170.77 | 65,837.35 |
| Account due from central bank available for payment | ||
| Amount due from banks | ||
| Amount call loans to banks | ||
| II. Cash equivalent | 760,000,000.00 | 390,000,000.00 |
| including: bond investment due within three months | ||
| III. Balance of cash and cash equivalent at period-end | 1,084,903,966.81 | 771,490,000.96 |
| Including: Cash and cash equivalent of the parent company or subsidiaries with use restricted |
(42) Foreign currency
1. Foreign currency
| Item | Balance of foreign currency at period-end | Conversion rate | Balance of RMB converted at period-end |
| Monetary fund | |||
| Including: USD | 840,153.18 | 7.08 | 5,947,607.19 |
| HKD | 976.71 | 7.96 | 7,775.59 |
| Euro | 466,204.75 | 0.91 | 425,833.72 |
| SGD | 5,558.03 | 5.08 | 28,242.02 |
VI. Change of consolidate scope
1. Disposal of subsidiary
| Name of subsidiary | Equity disposal price | Equity disposal ratio (%) | Equity disposal method | Time point of loss of control | Basis for determining the time point of loss of control | Consolidated statement level corresponding to disposal price and |
| disposal investment enjoys the difference of the subsidiary’s net asset share | ||||||
| Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd | 104,980,000.00 | 70% | Assignment by agreement | 2020/4/30 | The sale has been approved by the general meeting of shareholders, more than 50% of the disposal payment has been received, the equity transfer procedures have been completed, and the board of directors has been completely replaced | 33,534,881.55 |
Cont.
| Name of subsidiary | Proportion of remaining equity on the day of loss of control (%) | Book value of remaining equity on the date of loss of control | Fair value of the remaining equity on the date of loss of control | Gains or losses arising from recalculating the remaining equity at fair value | Determination method and main assumptions of the fair value of the remaining equity on the date of loss of control | Amount of other comprehensive income related to the equity investment of the original subsidiary that transferred to the investment profit and loss |
| Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd | N/A | N/A | N/A | N/A | N/A | N/A |
VII. Equity in other entity
(1) Equity in subsidiaries
1. Composition of the Group
| Subsidiary | Main operation | Registration place | Business nature | Shareholding ratio (%) | Acquired way |
| place | Directly | Indirectly | ||||
| Shenzhen Server (note) | Shenzhen | Shenzhen | Trading | 50 | Establishment | |
| New Power | Shenzhen | Shenzhen | Power generation | 75 | 25 | Establishment |
| Zhongshan Electric Power | Zhongshan | Zhongshan | Power generation | 55 | 25 | Establishment |
| Engineering Company | Shenzhen | Shenzhen | Engineering consulting | 60 | 40 | Establishment |
| Environment Protection Company | Shenzhen | Shenzhen | Engineering | 70 | 30 | Establishment |
| Singapore Company | Singapore | Singapore | Trading | 100 | Establishment | |
| Shenzhen Storage | Zhongshan | Zhongshan | Storage | 80 | Establishment | |
| Syndisome | Hong Kong | Hong Kong | Exp. & imp. Trading | 100 | Under different control |
Note : The Company holds 50% equity of Shenzhen Server, and holds a majority of voting rights in the company'sboard of directors at the same time. Therefore, the Company has substantive control over it, and it is included inthe consolidation scope of the consolidated financial statements.
2. Important non-wholly-owned subsidiary
| Subsidiary | Share-holding ratio of minority (%) | Gains/losses attributable to minority in the Period | Dividend announced to distribute for minority in the Period | Ending equity of minority |
| Zhongshan Electric Power | 20.00 | 2,788,481.06 | -16,079,276.55 |
3. Main finance of the important non-wholly-owned subsidiary
| Subsidiary | Ending Balance | Year-end balance of last year | ||||||||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liability | Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liability | |
| Zhongshan Electric Power | 78,383,348.34 | 517,641,214.85 | 596,024,563.19 | 670,872,281.50 | 5,548,664.49 | 676,420,945.99 | 67,810,211.56 | 529,800,968.49 | 597,611,180.05 | 686,312,294.78 | 5,637,673.36 | 691,949,968.14 |
| Subsidiary | Current amount | Last-year amount | ||||||
| Operation Income | Net profit | Total comprehensive income | Cash flow from operation activity | Operation Income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Zhongshan Electric Power | 85,765,596.92 | 13,942,405.29 | 13,942,405.29 | 31,248,237.34 | 66,364,051.74 | -11,987,240.04 | -11,987,240.04 | 30,421,274.57 |
(2) Equity in joint venture and cooperative enterprise
1. Major joint venture and cooperative enterprise
| Name | Main operation place | Registered place | Business nature | Share-holding ratio（%） | Accounting treatment on investment for joint venture and cooperative enterprise | |
| Directly | Indirectly | |||||
| Huidong Server | Huizhou | Huizhou | Wharf operation | 40.00 | Equity method | |
2. Financial summary for un-important joint venture or cooperative enterprise
| Ending Balance /Current amount | Year-end balance of last year /Last-year amount | |
| Joint venture: | ||
| Total book value of the investment | 14,375,580.60 | 14,619,203.03 |
| Total numbers measured by share-holding ratio | ||
| —Net profit | -243,622.43 | -677,552.37 |
| —Other comprehensive income | ||
| —Total comprehensive income | -243,622.43 | -677,552.37 |
VIII. Risks relating to financial instrumentsThe Company's main financial instruments include equity investment, borrowings, accounts receivable, accountspayable, etc., see details of each financial instrument in related items of this annotation V. The risks associated withthese financial instruments and the risk management policies adopted by the Company to reduce these risks aredescribed as below. The management of the Company manages and monitors these risk exposures to ensure thatthe above risks are controlled within the limit range.The Company uses the sensitivity analysis technique to analyze the possible impact of the risk variable on thecurrent profit and loss or the shareholders' equity. Since any risk variable rarely changes in isolation, and thecorrelation existing among the variables shall have a significant effect on the final amount of changes about acertain risk variable, therefore, the following proceeds by assuming that the change in each variable is independent.The objective of the Company's risk management is to gain a proper balance between risks and profits, minimizethe negative impact of risks on the Company's operating results, and maximize the benefits of shareholders andother equity investors. Based on the risk management objective, the basic strategy of the Company's risk
management is to identify and analyze the risks faced by the Company, establish appropriate bottom line to bearthe risks and carry out risk management, and timely and reliably supervise the risks so as to control the risks withinthe limit range.(I) Credit riskOn 30 June 2020, the maximum credit risk exposure that could cause financial loss to the Company is mainly dueto the failure of the other party to fulfill the obligations, resulting in losses to the Company's financial assets,including:
Carrying value of financial assets recognized in consolidated balance sheet. As for financial instrument at fairvalue, carrying value reflects its risk exposure, while not the largest risk exposure. The largest risk exposure willvary as fair value changes in future.In order to bring down credit risk, the Company establishes a special working team to take charge of determiningcredit limit, making credit approval and implementing other monitor procedures to ensure necessary measures areadopted to collect overdue debts. In addition, recovery of each single account receivable is reviewed on eachbalance sheet date to ensure adequate bad debt provision is made for unrecoverable amount. Therefore,management believes that the Company has substantially reduced the credit risks it assumes.Our current capital is deposited with highly-rated banks, thus credit risk arising from current capital is relativelylow.(II) Market riskMarket risks of financial instruments refers to the risks that the fair value or future cash flow ofsuch financial instruments will fluctuate due to the changes in market prices, including FX risks,interest rate risks and other price risks.
1. Interest rate risk
The Company's cash flow change risk of financial instruments arising from interest rate change is mainly related tothe floating interest rate bank loans (see details in Note V (16);Interest rate risk sensitivity analysis:
The interest rate risk sensitivity analysis is based on the following assumptions:
Changes in market interest rates affect the interest income or expense of financial instruments withvariable interest rate; For financial instruments with fixed rate by fair value measurement, thechanges in market interest rates only affect their interest income or expense; For derivativefinancial instruments designated as hedging instruments, the changes in market interest rates affecttheir fair value, and all interest rate hedging prediction is highly effective; Calculate the changes infair value of derivative financial instruments and other financial assets and liabilities by using thecash flow discount method at the market interest rate at the balance sheet date.On the basis of above assumptions, in case that other variables keep unchanged, the pre-tax effect of possiblereasonable changes in interest rates on current profits and losses and shareholders' equity is as follows:
| Rate changes | Current year | Last year | ||
| Impact on profit | Impact on shareholders’ equity | Impact on profit | Impact on shareholders’ equity | |
| 5% increased | 878,221.61 | 800,563.02 | 1,177,083.56 | 1,139,067.58 |
| Rate changes | Current year | Last year | ||
| Impact on profit | Impact on shareholders’ equity | Impact on profit | Impact on shareholders’ equity | |
| 5% decreased | -878,221.61 | -800,563.02 | -1,177,083.56 | -1,139,067.58 |
2. FX risks
Foreign exchange risk refers to the risk of losses due to exchange rate changes. The Company’s foreign exchangerisk is mainly related to the US dollar. On 30 June 2020, except for the balance of foreign currency monetary itemsof 42. Foreign currency monetary in Note V, the assets and liabilities of the Company are RMB balance. Theforeign exchange risk arising from the assets and liabilities of such foreign currency balances may have an impacton the Company's operating results.(III) Liquidity riskIn managing the liquidity risk, the Company keeps the cash and cash equivalents that the management considers tobe sufficient and supervise them so as to meet the Company's operating needs and reduce the impact offluctuations in cash flows. The Company’s management monitors the use of bank loans and ensures to complywith the loan agreement.The Company uses bank loans as the main source of funds.IX. Related party and related party transactions
(1) Parent company of the Group
Share holding proportion of any shareholder of the Company didn't reach 50%, and couldn't form a holdingrelationship of the Company through any methods. The Company has no parent company.
(2) Subsidiaries of the Company
See details in Note VII. Equity in other entity
(3) Joint venture and affiliated enterprise of the Group
See details in Note VII. Equity in other entity
(4) Other related party
| Other related party | Relationship with the Company |
| Shenzhen Energy Group Co., Ltd. (“Shenzhen Energy Group” for short) | 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 Co., Ltd. | Legal person indirectly holding more than 5% of the company's shares through Shenzhen Energy Group |
| Other related party | Relationship with the Company |
| Wanhe Securities Co., Ltd. | Other related parties |
| Shenzhen Energy Group Co., Ltd. | Other related parties |
| Fuel branch of Shenzhen Energy Group Co., Ltd. | Other related parties |
| Shenzhen Energy and Gas Investment Holding Co., Ltd. | Other related parties |
| Directors, supervisors and senior management of the company | Key managers |
(5) Receivable/payable items of related parties
1. Receivable
| Item | Related party | Ending Balance | Year-end balance of last year | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Other account receivable | |||||
| Huidong Server | 8,432,761.42 | 9,060,361.44 | |||
| Huidong Server managed account | 13,243,635.56 | 13,114,012.69 | |||
| Total | 21,676,396.98 | 22,174,374.13 | |||
X. Government subsidies
(1) Government subsidies related to assets
| Type | Amount | Balance sheet | The amount included in current gain/loss or loss resulting from related costs off-setting | Item of the amount included in |
| Current amount | Last amount | current gain/loss or loss resulting from related costs off-setting | |||
| Subsidy for low-nitrogen transformation | 43,032,780.00 | Deferred income | 261,374.29 | 251,403.55 | Other income |
| Information construction | 520,000.00 | Deferred income | 30,588.24 | 30,588.24 | Other income |
| Support fund of recycling economy for sludge drying | 10,000,000.00 | Deferred income | 127,500.00 | 127,500.00 | Other income |
| Treasury subsidies for sludge drying | 5,100,000.00 | Deferred income | 323,501.46 | 323,501.46 | Other income |
| Special funds for energy conservation and emission reduction | 1,530,000.00 | Deferred income | 57,018.66 | 57,018.66 | Other income |
| Funded of energy efficiency improvement for electric machine | 518,400.00 | Deferred income | 17,280.00 | 17,280.00 | Other income |
| Subsidy for quality promotion of the air environment in Shenzhen | 70,977,273.00 | Deferred income | 2,365,909.08 | 1,201,651.54 | Other income |
| Total | 131,678,453.00 | 3,183,171.73 | 2,008,943.45 |
(2) Government subsidies related to income
| Type | Amount | The amount included in current gain/loss or loss resulting from related costs off-setting | Item of the amount included in current gain/loss or loss resulting from related costs off-setting | |
| Current amount | Last amount | |||
| VAT refund | 1,134,065.17 | 1,134,065.17 | 1,753,212.01 | Other income |
| Type | Amount | The amount included in current gain/loss or loss resulting from related costs off-setting | Item of the amount included in current gain/loss or loss resulting from related costs off-setting | |
| Current amount | Last amount | |||
| Unemployment insurance refund of affected enterprises | 4,171,581.28 | 4,171,581.28 | Other income | |
| Subsidies for further steady growth of funding projects | 100,000.00 | 100,000.00 | Other income | |
| Office housing support funds for listed companies | 1,000,000.00 | Other income | ||
| Encourage SMEs to scale up rewards | 200,000.00 | Other income | ||
| Total | 5,405,646.45 | 5,405,646.45 | 2,953,212.01 | |
XI. Commitment and Contingency
(1) Major Commitment
Nil
(2) Contingency
Nil
XII. Events Occurring after the Balance Sheet DateOn March 5 and March 23, 2020, the Eleventh Extraordinary Meeting of the Company’s EighthBoard of Directors and the 2020 First Extraordinary General Meeting of Shareholders under thename of Shenzhen Nanshan Power Co., Ltd (hereinafter referred to as the Company) respectivelyreviewed and approved the Proposal on the Agreement to Transfer 70% Equity of Shen Nan Dian(Dongguan) Weimei Electric Power Co., Ltd.", agreeing to transfer 70% equity of Shen Nan DianDongguan Company directly and indirectly held by the company to Shenzhen Gas Group Co., Ltd.(hereinafter referred to as Shenzhen Gas) at a total price of 104.98 million yuan. According to theequity transfer agreement signed between the company and Shenzhen Gas, after the companyreceived 40% of equity transfer fund, i.e. 59.99 million yuan, of Shen Nan Dian DongguanCompany from Shenzhen Gas, Shen Nan Dian Dongguan Company has completed the industrialand commercial change registration on April 9, 2020. Since then, the total loan of 300 million
yuan applied by Shen Nan Dian Dongguan Company from Bank of Ningbo Shenzhen Branch andIndustrial Bank Shenzhen Branch has been repaid, and the joint guarantee and liability guaranteeprovided by the company for the above loan of Shen Nan Dian Dongguan Company has beenlifted; Shen Nan Dian Dongguan Company has fully repaid the principal and interest of thecompany's 180 million yuan of financial assistance.
On July 2, 2020, the company's wholly-owned subsidiary Hong Kong Syndisome Co., Ltd.received the remaining 30% equity transfer payment of 44.99 million yuan from Shenzhen Gas.So far, the company has received all the equity transfer payments paid by Shenzhen Gas, and thetransfer of 70% equity of Shen Nan Dian Dongguan Company was completed.
XIII. Other important events
(1) Segment information
1. Determining basis and accounting policies of reportable segments
According to the Group's internal organization structure, management requirements and internal reporting system, theGroup's business is divided into three operating segments including power and heat supply, fuel oil trade and otherbusiness, the Group's management periodically evaluates the operating results of these segments so as to determinethe allocation of resources and assess their performances.Segmental reporting information is disclosed in accordance with the accounting policies and measurement standardsadopted by each segment for reporting to the management, the measurement basis keep pace with the accounting andmeasurement basis used for preparing financial statements.
2. Financial information of the reportable segment
| Item | Power supply & heating | Fuel trading | Other | Fuel trading | Total |
| Operation income | 492,269,718.83 | 535,619.08 | 46,696,529.61 | 21,351,261.31 | 518,150,606.21 |
| Operation cost | 443,625,551.12 | 98,068.80 | 36,294,452.93 | 26,908,636.71 | 453,109,436.14 |
| Total assets | 3,739,501,185.55 | 121,784,714.52 | 346,595,525.59 | 1,156,333,540.24 | 3,051,547,885.42 |
| Total liabilities | 1,751,424,593.52 | 29,386,981.49 | 44,802,294.92 | 846,135,389.63 | 979,478,480.30 |
XIV. Note to main items of financial statements of the Company
(1) Account receivable
1. Age analysis
| Account age | Book balance | Year-end balance of last year |
| Within one year | 61,626,629.43 | 31,821,804.69 |
| 1 to 2 years |
| Account age | Book balance | Year-end balance of last year |
| 2 to 3 years | ||
| Over 3 years | 2,889.00 | 2,889.00 |
| Subtotal | 61,629,518.43 | 31,824,693.69 |
| Less: Bad debt provision | ||
| Total | 61,629,518.43 | 31,824,693.69 |
2. According to accrual method for bad debts
| Category | Book balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| With single provision for bad debts | |||||
| With bad debt provision accrual based on similar credit risk characteristics of a portfolio | 61,629,518.43 | 100.00 | 61,629,518.43 | ||
| Total | 61,629,518.43 | 100.00 | 61,629,518.43 | ||
| Category | Year-end balance of last year | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| With single provision for bad debts | |||||
| With bad debt provision accrual based on similar | 31,824,693.69 | 100 | 31,824,693.69 | ||
| Category | Year-end balance of last year | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| credit risk characteristics of a portfolio | |||||
| Total | 31,824,693.69 | 100 | 31,824,693.69 | ||
3. No account receivable with single provision for bad debts
Provision for bad debts by portfolio：
Provision by portfolio：
| Name | Book balance | ||
| Account receivable | Bad debt provision | Accrual proportion (%) | |
| With minor credit risk | 61,629,518.43 | ||
Recognition standards and specifications on provisions by portfolio:
The account receivable with provision for bad debts by portfolio mainly refers to the amount fromShenzhen Power Supply Bureau Co., Ltd etc., which has minor credit risk and no provision forbad debts.
4. No provision for bad debts in the current period
5. Top 5 receivables at ending balance by arrears party
Total period-end balance of top five receivables by arrears party amounting to 61,629,518.43 Yuan, takes 100percent of the total account receivable at period-end, bad debt provision accrual correspondingly at period-endamounting as 0 Yuan
6. No accounts receivable terminated recognition due to transfer of financial assets at theperiod
(2) Other account receivable
| Item | Ending Balance | Last year-end balance |
| Interest receivable | ||
| Dividend receivable | ||
| Other account receivable | 660,835,522.34 | 873,861,071.55 |
| Total | 660,835,522.34 | 873,861,071.55 |
1. Other account receivable
(1) Disclosure by age
| Account age | Ending Balance | Last year-end balance |
| Within one year | 181,599,583.37 | 239,265,595.88 |
| 1 to 2 years | 262,147,773.68 | 89,264,291.59 |
| 2 to 3 years | 136,709,590.00 | 100,729,690.00 |
| Over 3 years | 107,708,218.73 | 471,931,137.52 |
| Subtotal | 688,165,165.78 | 901,190,714.99 |
| Less: Bad debt provision | 27,329,643.44 | 27,329,643.44 |
| Total | 660,835,522.34 | 873,861,071.55 |
(2) Disclosure by category
| Category | Book balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| With single provision for bad debts | 28,023,159.22 | 4.07 | 27,329,643.44 | 97.53 | 693,515.78 |
| With bad debt provision accrual based on similar credit risk characteristics of a portfolio | 660,142,006.56 | 95.93 | 660,142,006.56 | ||
| Total | 688,165,165.78 | 100.00 | 27,329,643.44 | 3.97 | 660,835,522.34 |
| Category | Year-end balance of last year | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| With single provision for bad debts | 28,023,159.22 | 3.11 | 27,329,643.44 | 97.53 | 693,515.78 |
| Category | Year-end balance of last year | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| With bad debt provision accrual based on similar credit risk characteristics of a portfolio | 873,167,555.77 | 96.89 | 873,167,555.77 | ||
| Total | 901,190,714.99 | 100.00 | 27,329,643.44 | 3.03 | 873,861,071.55 |
With single provision for bad debts:
| Name | Book balance | |||
| Book amount | Bad debt provision | Accrual proportion (%) | Causes | |
| Huiyang Kangtai Industrial Company | 14,311,626.70 | 14,311,626.70 | 100.00 | Un-collectable in excepted |
| Individual income tax | 2,470,039.76 | 2,470,039.76 | 100.00 | Un-collectable in excepted |
| Dormitory amount receivable | 2,083,698.16 | 1,736,004.16 | 83.31 | Some un-collectable in excepted |
| Personal receivables | 7,498,997.87 | 7,498,997.87 | 100.00 | Un-collectable in excepted |
| Deposit receivable | 1,658,796.73 | 1,312,974.95 | 79.15 | Some un-collectable in excepted |
| Total | 28,023,159.22 | 27,329,643.44 | 97.53 | |
Provision for bad debts by portfolio:
Provision by portfolio:
| Name | Book balance | ||
| Other account receivable | Bad debt provision | Accrual proportion (%) | |
| Name | Book balance | ||
| Other account receivable | Bad debt provision | Accrual proportion (%) | |
| With minor credit risk | 660,142,006.56 | ||
Recognition standards and specifications on provisions by portfolio:
The Company believes that the credit risk of other account receivable with no impairment in the single assessmentis relatively low, no provision for bad debts, unless there is evidence that a certain other account receivable is atgreater credit risk.
(3) Accrual of bad debt provision
| Bad debt provision | Phases I | Phases II | Phases III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance at year-begin | 27,329,643.44 | 27,329,643.44 | ||
| Book balance of other account receivable at year-begin | ||||
| ——Turn to phase II | ||||
| ——Turn to phase III | ||||
| ——Return to Phase II | ||||
| ——Return to Phase I | ||||
| Current accrual | ||||
| Current switch back | ||||
| Rewrite in the period | ||||
| Write-off in the period | ||||
| Other changes | ||||
| Book balance | 27,329,643.44 | 27,329,643.44 |
(4) No provision for bad debts in the current period
(5) No other accounts receivable that had actually written off in the period
(6) By nature
| Nature | Ending book balance | Book balance at last year-end |
| Dormitory receivables | 2,083,698.16 | 2,083,698.16 |
| Deposit receivable | 1,738,810.86 | 1,658,796.73 |
| Related party transactions | 656,170,887.94 | 866,978,723.13 |
| Personal account | 10,008,932.63 | 10,008,932.63 |
| Other | 18,162,836.19 | 20,460,564.34 |
| Total | 688,165,165.78 | 901,190,714.99 |
(7) Top 5 other account receivables at period-end listed by arrears party
| Name of the company | Relationship with the Company | Ending Balance | Age | Proportion in total other account receivable(%) | Ending balance of bad debt provision |
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | Intercourse funds | 648,154,459.86 | 0-3 year, Over 3 years | 94.19 | |
| Huiyang County Kangtai Industrial Company | Other | 14,311,626.70 | Over 3 years | 2.08 | 14,311,626.70 |
| Shenzhen Shennandian Turbine Engineering Technology Co., Ltd. | Intercourse funds | 4,204,379.85 | Within 1 year | 0.61 | |
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | Intercourse funds | 3,812,048.23 | Within 1 year | 0.55 | |
| Dormitory receivables | Intercourse funds | 2,083,698.16 | Over 3 years | 0.30 | 1,736,004.16 |
| Total | 672,566,212.80 | 97.73 | 16,047,630.86 |
(8) No receivables involving government subsidies
(9) No other receivables terminated recognition due to transfer of financial assets
(3) Long-term equity investment
| Item | Ending Balance | Last year-end balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Investment to subsidiary | 576,663,800.00 | 347,745,035.00 | 228,918,765.00 | 691,982,849.76 | 388,641,684.76 | 303,341,165.00 |
| Investment to joint venture and affiliate enterprise | ||||||
| Total | 576,663,800.00 | 347,745,035.00 | 228,918,765.00 | 691,982,849.76 | 388,641,684.76 | 303,341,165.00 |
1. Investment to subsidiary
| The invested entity | Last year-end balance | Increase in the period | Decrease in the period | Ending Balance | Impairment provision accrual in the Period | Period-end balance of depreciation reserves |
| Shenzhen Server | 26,650,000.00 | 26,650,000.00 | ||||
| New Power Company | 71,270,000.00 | 71,270,000.00 | ||||
| Zhongshan Electric Power | 410,740,000.00 | 410,740,000.00 | 347,745,035.00 | |||
| Engineering Company | 6,000,000.00 | 6,000,000.00 | ||||
| Weimei Electric Power | 115,319,049.76 | 115,319,049.76 | ||||
| Singapore | 6,703,800.00 | 6,703,800.00 |
| The invested entity | Last year-end balance | Increase in the period | Decrease in the period | Ending Balance | Impairment provision accrual in the Period | Period-end balance of depreciation reserves |
| Company | ||||||
| Environment Protection Company | 55,300,000.00 | 55,300,000.00 | ||||
| Total | 691,982,849.76 | 115,319,049.76 | 576,663,800.00 | 347,745,035.00 |
(4) Operation revenue/operation cost
| Item | Current amount | Last-period amount | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 118,119,714.73 | 133,626,167.32 | 127,282,753.58 | 166,390,507.99 |
| Other business | 27,647,300.61 | 4,310,751.77 | 38,231,297.65 | 5,937,627.54 |
| Total | 145,767,015.34 | 137,936,919.09 | 165,514,051.23 | 172,328,135.53 |
XV. Supplementary information
(1) Statement of non-recurring gains/losses
| Item | Amount | Note |
| Gains and losses from disposal of non-current assets | 34,363,417.21 | |
| Tax refund or mitigate due to examination-and-approval beyond power or without official approval document | ||
| Governmental subsidy reckoned into current gains/losses(not including the subsidy enjoyed in quota or ration, which are closely relevant to enterprise’s normal business | 7,621,471.38 | |
| Capital occupancy expense, collected from non-financial enterprises and recorded in current gains and losses | ||
| Income from the exceeding part between investment cost of the Company paid for obtaining subsidiaries, associates and joint-ventures and recognizable net assets fair value attributable to the Company when acquiring the investment | ||
| Gains and losses from exchange of non-monetary assets |
| Item | Amount | Note |
| Gains and losses from assets under trusted investment or management | ||
| Various provision for impairment of assets withdrew due to act of God, such as natural disaster | ||
| Gains and losses from debt restructuring | ||
| Enterprise restructuring costs, such as expenses for staff placement, integration costs, etc | ||
| Gains and losses of the part arising from transaction in which price is not fair and exceeding fair value | ||
| Current net gains and losses occurred from period-begin to combination day by subsidiaries resulting from business combination under common control | ||
| Gains and losses arising from contingent proceedings irrelevant to normal operation of the Company | ||
| Except for effective hedge business relevant to normal operation of the Company, gains and losses arising from fair value change of tradable financial assets and tradable financial liabilities, and investment income from disposal of tradable financial assets, tradable financial liabilities and financial assets available for sale | ||
| Switch-back of provision of impairment of account receivable which are treated with separate depreciation test | ||
| Gains and losses obtained from external trusted loans | ||
| Gains and losses arising from change of fair value of investment real estate whose follow-up measurement are conducted according to fair value pattern | ||
| Affect on current gains and losses after an one-time adjustment according to requirements of laws and regulations regarding to taxation and accounting | ||
| Trust fee obtained from trust operation | ||
| Other non-operating income and expenditure except for the aforementioned items | -6,356.16 | |
| Other gains and losses items complying with definition for non-recurring gains and losses | ||
| Impact on income tax | -67,935.50 | |
| Impact on minority shareholders’ equity | -19,828.93 |
| Item | Amount | Note |
| Total | 41,890,768.00 |
(2) ROE and EPS
| Profit in the Period | Weighted average ROE (%)） | EPS | |
| Basic EPS | Diluted EPS | ||
| Net profit attributable to shareholders of the listed company | 2.57 | 0.09 | 0.09 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | 0.51 | 0.02 | 0.02 |