Shenzhen Nanshan Power Co., Ltd.
Semi-annual Report 2022
【Disclosure Date】August 19, 2022
Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and seniorofficers of Shenzhen Nanshan Power Co., Ltd. (hereinafter, the Company)guarantee that the Semi-Annual Report contains no misrepresentations,misleading statements or material omissions, and take all responsibilities,individual and/or joint, for the reality, accuracy and completion of the wholecontents.
Principal of the Company- Li Xinwei (Mr. Li Xinwei has resigned as the directorand chairman of the Company on July 25, 2022), person in charger ofaccounting works- Chen Yuhui, CFO Zhang Xiaoyin and person in charge ofaccounting organ (chief accountants)-Lin Xiaojia guarantee that the FinancialReport of the semi-annual report disclosed is truthful, accurate and complete.
All directors are attended the Board Meeting for report deliberation.
The Company plans to pay no cash dividends, send no bonus shares and not toincrease share capital by converting from public reserves.
Concerning the forward-looking statements with future planning involved in theSemi-annual Report, they do not constitute a substantial commitment forinvestors. Investors are advised to exercise caution of investment risks.
Contents
Section I. Important Notice, Contents and Interpretation .......................................................................................... 1
Section II. Company Profile and Main Financial Indexes ......................................................................................... 5
Section III Management Discussion and Analysis ...... 9
Section IV. Corporate Governance .......................................................................................................................... 22
Section V. Environmental and Social Responsibility ............................................................................................... 23
Section VI. Important Event .................................................................................................................................... 25
Section VII. Changes Unit: shares and Particulars about Shareholders ................................................................... 32
Section VIII. Preferred Stock................................................................................................................................... 37
Section IX. Corporate Bonds ................................................................................................................................... 38
Section X. Financial Report ..................................................................................................................................... 39
Document Available for Reference
I. Original Semi-Annual Report of 2022 carrying the signature of the legal representative of the CompanyII. Financial statement with signature and seal of legal person, person in charge of accounting works (Generalmanager), CFO and person in charge of accounting organ(chief accountant);III. Text of notice and original draft that public on Securities Times, China Securities Journal and Hong KongCommercial Daily during the reporting period.IV. The place where the document placed: Shenzhen Stock Exchange, Office of Board of Directors of theCompany.
Interpretation
| Items | Refers to | Contents |
| Company, the Company, Shen Nan Dian, The listed company | Refers to | Shenzhen Nanshan Power Co., Ltd. |
| Shen Nan Dian Zhongshan Company | Refers to | Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. |
| Shen Nan Dian Engineering Company | Refers to | Shenzhen Shennandian Turbine Engineering Technology Co., Ltd |
| Shen Nan Dian Environment Protection Company | Refers to | Shenzhen Shen Nan Dian Environment Protection Co., Ltd. |
| Server Company | Refers to | Shenzhen Server Petrochemical Supplying Co., Ltd |
| New Power Company | Refers to | Shenzhen New Power Industrial Co., Ltd. |
| Singapore Company | Refers to | Shen Nan Energy (Singapore) Co., Ltd. |
| Nanshan Power Factory | Refers to | Nanshan Power Factory of Shenzhen Nanshan Power Co., Ltd. |
| Zhongshan Nanlang Power Plant | Refers to | Zhongshan Nanlang Power Plant of Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. |
| Articles of Association | Refers to | Article of Association of Shenzhen Nanshan Power Co., Ltd. |
| Yuan, ten thousand Yuan, one hundred million | Refers to | Except the special description of the monetary unit, the rest of the monetary unit is RMB Yuan, ten thousand Yuan,one hundred million Yuan |
| Reporting period | Refers to | 1 January 2022 to 30 June 2022 |
Section II. Company Profile and Main Financial IndexesI. Company profile
| Short form of the stock | Shen Nan Dian A , Shen Nan Dian B | Stock code | 000037, 200037 |
| Stock exchange for listing | Shenzhen Stock Exchange | ||
| Name of the Company (in Chinese) | 深圳南山热电股份有限公司 | ||
| Short form of the Company (in Chinese) (if applicable) | 深南电 | ||
| Foreign name of the Company (if applicable) | Shenzhen Nanshan Power Co., Ltd. | ||
| Legal representative | Li Xinwei | ||
II. Person/Way to contact
| Secretary to the BOD | Rep. of security affairs | |
| Name | Zou Yi | |
| Contact add. | 16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, Guangdong Province | |
| Tel. | 0755-26003611 | |
| Fax. | 0755-26003684 | |
| investor@nspower.com.cn |
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period ornot
□ Applicable √Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,found more details in Annual Report 2021.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparationplace for semi-annual report have no change in reporting period, found more details in Annual Report 2021.
3.Other relevant information
Whether other relevant information has changed during the reporting period
□ Applicable √ Not applicable
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes √ No
| Current period | Same period last year | Changes in the current reporting period compared with the same period of the previous year (+,-) | |
| Operating revenue (RMB) | 229,243,542.07 | 376,602,393.38 | -39.13% |
| Net profit attributable to shareholders of the listed Company (RMB) | -94,098,149.09 | 1,456,269.68 | -6,561.59% |
| Net profit attributable to shareholders of the listed Company after deducting non-recurring gains and losses (RMB) | -127,505,554.48 | -19,517,615.51 | -553.28% |
| Net cash flow arising from operating activities (RMB) | 200,588,083.30 | 68,920,712.99 | 191.04% |
| Basic earnings per share (RMB/Share) | -0.1561 | 0.0024 | -6,604.17% |
| Diluted earnings per share (RMB/Share) | -0.1561 | 0.0024 | -6,604.17% |
| Weighted average ROE | -6.00% | 0.07% | 6.07 percentage points down |
| End of current period | End of last year | Changes at the end of the reporting period compared with the end of the previous year (+,-) | |
| Total assets (RMB) | 2,998,519,336.41 | 2,790,002,824.41 | 7.47% |
| Net assets attributable to shareholder of listed Company (RMB) | 1,521,194,986.42 | 1,615,293,135.51 | -5.83% |
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (InternationalAccounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules orChinese GAAP (Generally Accepted Accounting Principles) in the period.VI. Items and amounts of non-recurring (extraordinary) profit (gains)/loss
√Applicable □ Not applicable
In RMB/CNY
| Item | Amount | Note |
| Governmental subsidy calculated into current gains and losses(while closely related with the normal business of the Company, the government subsidy that accord with the provision of national policies and are continuously enjoyed in line with a certain standard quota or quantity are excluded) | 4,440,645.78 | The government subsidy related to assets are being amortized |
| Gains/losses of fair value changes arising from holding of the trading financial asset, trading financial liability and investment earnings obtained from disposing the trading financial asset, trading financial liability, and financial assets available for sale, except for the effective hedging business related to normal operation of the Company | 29,212,829.84 | Income from wealth management |
| Other non-operating income and expenditure except for the aforementioned items | -228,495.85 | |
| Less: Impact on minority shareholders’ equity (post-tax) | 17,574.38 | |
| Total | 33,407,405.39 |
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□ Applicable √ Not applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.
Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&AAnnouncement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
□ Applicable √ Not applicable
There are no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&AAnnouncement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
Section III Management Discussion and AnalysisI. Main businesses of the Company in the reporting period
In the first half of 2022, the national electricity consumption of the whole society was 4,100 billion kWh, ayear-on-year increase of 2.9%. In the first and second quarters, the total electricity consumption of the wholesociety increased by 5.0% and 0.8% on a year-on-year basis respectively. In the second quarter, the growth ratedropped significantly mainly due to the influence of the pandemic situation in some areas in April and May, andthe total electricity consumption of the whole society recorded negative growth for two consecutive months. InJune, as the pandemic eased, the effects of economic stabilization policies were gradually implemented, and withthe addition of high-temperature weather factors in many places, the electricity consumption of the whole societyin the month increased by 4.7% on a year-on-year basis, 6.0 percentage points higher than the growth rate in May.The apparent rebound in the growth rate of electricity consumption in June reflected to a certain extent that thecurrent resumption of work and production and the resumption of business and markets have achieved positiveresults. According to the main statistical indicators of Guangdong in the first half of 2022 released by theGuangdong Provincial Bureau of Statistics, the total electricity consumption in Guangdong Province in the firsthalf of the year was 355.608 billion kWh, a year-on-year decrease of 2.4%; the industrial electricity consumptionwas 212.082 billion kWh, a year-on-year decrease of 3.4%; the electricity consumption of the manufacturingindustry was 174.914 billion kWh, a year-on-year decrease of 4.3%. It is expected that during the peak summerperiod, the national power supply and demand will be in a tight balance overall. The power supply and demand insome provinces in East China, Central China, and South China will be tight during peak hours, and the powersupply and demand in North China, Northeast China, and Northwest China will be basically balanced. During thepeak winter period, the national power supply and demand shall be generally in a tight balance. The power supplyand demand in some provinces in East China, Central China, South China, and Northwest China shall be tightduring peak hours, and the power supply and demand in North China and Northeast China shall be basicallybalanced.
The company is specialized in power and thermal supply, as well as providing technical consulting and technicalservices for power stations. At the end of reporting period, the Company holds two wholly-owned and holding gasturbine plants, which equipped with five sets of 9E gas steam combined cycle power generating units, with totalinstalled capacity up to 900,000 KW (Nanshan Power Factory: 3×180000KW, Zhongshan Nanlang Power Plant:
2×180000KW).The two gas turbine plants are located in the power-load center of the Pearl River Delta, and it isthe main peak-regulating power supply in the region which is currently in normal production and operation state.
In the first half of 2022, domestic pandemics had frequent and sporadic outbreaks, and the internationalenvironment became more complex and severe. In the face of extremely complex and difficult situations, the
company conscientiously implemented the relevant requirements of competent government departments at alllevels on the security and supply of energy and electricity, took strong and effective measures, and went all out toensure the safety and reliability of electricity production, provided a strong power guarantee for pandemicprevention and control and economic and social development. From January to June 2022, two subordinate powergeneration enterprises of the company completed a total of 275 million kWh of actual grid electricity and 634million kWh of financial settlement electricity. The completion of electricity of each subsidiary of the companywas as follows: Nanshan Power Factory completed the actual grid electricity of 264.5 million kWh and thefinancial settlement electricity of 412 million kWh. Zhongshan Nanlang Power Plant completed the actual gridelectricity of 10.5 million kWh and the financial settlement electricity of 223 million kWh. While the overallelectricity consumption of the whole province declined, due to the fact that the price of natural gas remained high,the company's actual on-grid electricity dropped significantly on a year-on-year basis.
During the reporting period, the domestic and foreign pandemics, macro economy, fuel supply, temperature, aswell as continuous large-scale losses of coal and power companies were intertwined and superimposed, thecompany’s main power business faced many challenges, such as repeated COVID-19 pandemics, persistently highfuel prices, trial operation of the spot market settlement of electric power, and the continued shortage of electricitysupply and demand in the southern region where it locates. The company not only had to fulfill the socialresponsibility of ensuring electricity supply, but bear the huge operating pressure caused by the sharp rise in fuelprices, facing extremely severe business situation. In order to minimize the negative impact of the externalenvironment on the company's business performance, the company implemented a series of business layout andmanagement changes with innovative thinking and tenacity, clarified the annual business goals and guidelines,and took targeted major measures. While focusing on safe production, strengthening internal management, andcontinuously improving the operation and management level and management efficiency of the company's stockassets, actively promoted the withdrawal of backward production capacity, we went all out to promote thedemonstration and implementation of new production capacity and new projects. While striving to adapt to theaccelerating trend of the reform process of electricity marketization in Guangdong Province, we strived to achievetransformation and development as soon as possible.
II. Core Competitiveness AnalysisIn recent years, due to the impact of the macroeconomic situation and the common problems of gas turbinegenerating industry, the Company’s main business has been facing increasing difficulties and challenges. However,the basic core competitiveness formed by the operation and development for more than three decades and thanksto the strong support from major shareholders, and the management innovations adopted by the Board and leadinggroup, it has laid a necessary foundation for the Company to survive and seeking transformation and development.During the reporting period, the company's core competitiveness has been further consolidated and improved, andthere have been no major changes that may affect the company's future operations. (core competitiveness analysisfound more in the Annual Report 2021)
III. Main business analysisOverviewFound more in”I. Main businesses of the Company in the reporting period”Y-o-y changes of main financial data
In RMB/CNY
| Current period | Same period of last year | Y-o-y increase/decrease (+,-) | Reasons for changes | |
| Operating revenue | 229,243,542.07 | 376,602,393.38 | -39.13% | The revenue from electricity settlement declined for the dropping of generating capacity |
| Operating costs | 282,486,432.21 | 351,210,223.91 | -19.57% | Cost of natural gas reduced for the dropping of generating capacity |
| Sales expenses | 696,436.80 | -100.00% | Affected by macro economy policy, Shen Nan Dian Environment Protection Company need to carry out transformation and eliminating on the sludge drying facilities, the sales expenses was 0 yuan | |
| Administrative expenses | 43,777,644.68 | 40,014,168.55 | 9.41% | |
| Finance expenses | 16,729,716.11 | 2,835,034.71 | 490.11% | The volume of credit increased |
| R&D investment | 17,072,589.13 | 3,360,629.60 | 408.02% | New expenses of R&D increased from parent company |
| Net cash flow arising from operating activities | 200,588,083.30 | 68,920,712.99 | 191.04% | The VAT credit refund received |
| Net cash flow arising from investment activities | -730,434,844.43 | -442,542,660.44 | -65.05% | More expenses on procurement of wealth management products |
| Net cash flow arising from financing activities | 309,964,533.04 | 60,903,494.60 | 408.94% | Soaring in bank loans |
| Net increase of cash and cash equivalent | -219,586,524.40 | -312,778,014.74 | -29.79% | On a y-o-y basis, the net increase in cash from operating and financing activities was greater than the net |
decrease in cash frominvestment activities
decrease in cash frominvestment activities
No changes on profit composition or profit resources in reporting period
Constitution of operating revenue
In RMB/CNY
| Current period | Same period of last year | Y-o-y changes (+,-) | |||
| Amount | Ratio in operating revenue | Amount | Ratio in operating revenue | ||
| Total operating revenue | 229,243,542.07 | 100% | 376,602,393.38 | 100% | -39.13% |
| According to industries | |||||
| Energy industry | 205,738,094.27 | 89.75% | 356,995,223.97 | 94.79% | -42.37% |
| Engineering labor | 22,901,068.56 | 9.99% | 15,650,905.64 | 4.16% | 46.32% |
| Sludge drying | 3,388,263.75 | 0.90% | -100.00% | ||
| Other | 604,379.24 | 0.26% | 568,000.02 | 0.15% | 6.40% |
| According to products | |||||
| Electricity sales | 205,738,094.27 | 89.75% | 356,995,223.97 | 94.79% | -42.37% |
| Engineering labor | 22,901,068.56 | 9.99% | 15,650,905.64 | 4.16% | 46.32% |
| Sludge drying | 3,388,263.75 | 0.90% | -100.00% | ||
| Other | 604,379.24 | 0.26% | 568,000.02 | 0.15% | 6.40% |
| According to region | |||||
| Shenzhen | 212,734,667.53 | 92.80% | 306,547,992.61 | 81.40% | -30.60% |
| Zhongshan | 16,508,874.54 | 7.20% | 70,054,400.77 | 18.60% | -76.43% |
The industries, products, or regions accounting for over 10% of the Company’s operating revenue or operating profit
√Applicable □ Not applicable
In RMB/CNY
| Operating revenue | Operating costs | Gross profit ratio | (+,-)Increase/decrease of operating revenue y-o-y | (+,-)Increase/decrease of operating cost y-o-y | (+,-)Increase/decrease of gross profit ratio y-o-y | |
| According to industries | ||||||
| Energy industry | 205,738,094.27 | 268,797,532.96 | -30.65% | -42.37% | -19.60% | -37.00% |
| Engineering labor | 22,901,068.56 | 13,594,750.26 | 40.64% | 46.32% | 49.02% | -1.07% |
| According to products | ||||||
| Electricity sales | 205,738,094.27 | 268,797,532.96 | -30.65% | -42.37% | -19.60% | -37.00% |
| Engineering labor | 22,901,068.56 | 13,594,750.26 | 40.64% | 46.32% | 49.02% | -1.07% |
| According to region | ||||||
| Shenzhen | 212,130,288.29 | 254,638,845.99 | -20.04% | -30.67% | -9.03% | -28.56% |
| Zhongshan | 16,508,874.54 | 27,756,267.42 | -68.13% | -76.43% | -61.01% | -66.52% |
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based onlatest one year’s scope of period-end
□ Applicable √ Not applicable
Reasons for y-o-y relevant data with over 30% changes
√Applicable □ Not applicable
1.Revenue from electricity sales drops 42.37% from a year earlier, mainly because the revenue from electricity settlement declinedfor the dropping of generating capacity; gross profit ratio reduced on a y-o-y basis mainly due to the soaring costs of
natural gas.
2. Revenue from engineering labor rose 46.32% from a year earlier, mainly due to the increase in revenue settlement of engineeringlabor from aboard; operating costs increased 49.02% on a y-o-y basis, mainly because the business of engineering labor growth leadsto a corresponding growth in costs.
3. Revenue from sludge drying decreases 100% from a year earlier, mainly because affected by macro economy policy, Shen NanDian Environment Protection Company need to carry out transformation and eliminating on the sludge drying facilitiesIV. Analysis of the non-main business
√Applicable □ Not applicable
In RMB/CNY
| Amount | Ratio in total profit | Note | Whether be sustainable (Y/N) | |
| Investment income | 27,741,227.07 | -27.26% | The income from wealth management | N |
| Non-operating expenditure | 228,495.85 | -0.22% | N |
V. Analysis of assets and liability
1. Major changes of assets composition
In RMB/CNY
| End of the current Period | End of last year | Ratio changes (+,-) | Notes of major changes | |||
| Amount | Ratio in total assets | Amount | Ratio in total assets | |||
| Monetary fund | 470,018,109.19 | 15.68% | 689,604,633.59 | 24.72% | -9.04% | Purchasing more wealth management products |
| Account receivable | 136,622,627.23 | 4.56% | 73,610,161.02 | 2.64% | 1.92% | |
| Contractual assets | 0.00 | 0.00% | 1,040,0000.00 | 0.04% | -0.04% | |
| Inventory | 86,153,552.73 | 2.87% | 88,500,991.13 | 3.17% | -0.30% | |
Investment realestate
| Investment real estate | 1,917,733.00 | 0.06% | 2,009,051.80 | 0.07% | -0.01% | |
| Long-term equity investment | 5,515,052.42 | 0.18% | 6,986,655.19 | 0.25% | -0.07% | |
| Fixed assets | 616,207,380.43 | 20.55% | 643,256,398.30 | 23.06% | -2.51% | |
| Construction in process | 5,609,774.20 | 0.19% | 6,088,768.51 | 0.22% | -0.03% | |
| Short-term loans | 1,334,338,596.65 | 44.50% | 858,444,163.25 | 30.77% | 13.73% | Increase in bank loans |
| Trading financial assets | 1,280,776,513.22 | 42.71% | 632,874,406.39 | 22.68% | 20.03% | Increase in wealth management products |
| Other current assets | 8,925,003.96 | 0.30% | 331,868,661.62 | 11.89% | -11.59% | The VAT credit refund received |
| Note payable | 135,025,883.27 | 4.84% | -4.84% | Return of the payable bank notes on maturity |
2.Main foreign assets
□ Applicable √ Not applicable
3. Assets and liability measured by fair value
√Applicable □Not applicable
In RMB/CNY
| Item | Opening amount | Gain/loss of fair value changes in the Period | Cumulative change of fair value recorded into equity | Impairment accrual in the Period | Amount purchased in the Period | Amount sold in the Period | Other changes | Ending amount |
| Financial assets | ||||||||
| Trading financial assets (derivative financial assets excluded) | 632,874,406.39 | 647,902,106.83 | 1,280,776,513.22 | |||||
| Other equity instrument investment | 200,615,000.00 | 100,000,000.00 | 300,615,000.00 | |||||
| Subtotal of financial assets | 833,489,406.39 | 747,902,106.83 | 1,581,391,513.22 | |||||
Other changesN/AWhether there is a significant changes in the measurement attributes of the main assets during the period
□Yes √No
4. Assets right restriction till end of reporting period
N/A
VI. Investment analysis
1. Overall situation
√ Applicable □Not applicable
| Investment amount in the Period (RMB) | Investment amount at same period last year (RMB) | Changes (+,-) |
| 100,000,000.00 | 118,957,517.00 | -15.94% |
2. The major equity investment obtained in the reporting period
□Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company had no derivatives investment in the reporting period.
5.Use of proceeds
□ Applicable √ Not applicable
The Company had no use of proceeds in the reporting period.
VII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
VIII. Analysis of main Holding Company and stock-jointly companies
√Applicable □Not applicable
Particular about main subsidiaries and stock-jointly companies with an impact of 10% or more on the Company’s net profit
In RMB/CNY
| Name | Type | Main business | Register capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Shenzhen New Power Industrial Co., Ltd. | Subsidiary | Technology development regarding to application of remaining heat (excluding restricted items) and power generation with remaining heat. Add: power generation through burning machines. | RMB 113.85 million | 826,794,329.21 | 51,079,176.21 | 92,783,779.73 | -44,309,214.37 | -44,309,214.37 |
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | Subsidiary |
Sludge drying; thedesign andoperationsmanagement ofsludge treatmentand disposalfacilities andengineering; thetechnologydevelopment,technologytransfer, technicaladvice, technicalservices of
| RMB 79 million | 64,627,630.43 | 47,389,061.75 | 24,000.00 | -4,678,870.83 | -4,678,870.83 |
environmentalpollution controlandcomprehensiveutilizationdomain; (Exceptfor the projectsrequired to beapproved beforeregistration bylaws,administrativeregulations, ordecisions andstipulation of theState Council, therestricted itemsmust be approvedbefore operating)
| environmental pollution control and comprehensive utilization domain; (Except for the projects required to be approved before registration by laws, administrative regulations, or decisions and stipulation of the State Council, the restricted items must be approved before operating) | ||||||||
| Shenzhen Shennandian Turbine Engineering Technology Co., Ltd | Subsidiary | Engage in the technical advisory service for the construction projects of gas-steam combined cycle power plant (station), and undertake the maintenance and overhaul of the operation equipment of gas-steam combined cycle power plant (station). Import and export of goods and technologies (excluding distribution and state monopoly commodities) | RMB 10 million | 70,151,088.10 | 41,065,930.65 | 22,901,068.56 | 2,077,549.45 | 2,077,549.45 |
ShenzhenServerPetrochemicalSupplyingCo., Ltd
| Shenzhen Server Petrochemical Supplying Co., Ltd | Subsidiary | Self-supporting or import agent business of fuel oil; trade (excluding production and storage and transportation) in diesel, lubricating oil, liquefied petroleum gas, natural gas, compressed gas and liquefied gas, chemical products (excluding dangerous chemicals); investment, construction and technical supports in liquefied petroleum gas, natural gas and related facilities; import and export businesses and domestic trade of goods and technologies (excluding franchise, exclusive control, and monopoly products); leasing business. Licensed projects: fuel oil warehousing business (except for refined oil); general freight transport, special transportation of | RMB 53.3 million | 97,796,694.06 | 80,270,360.16 | 546,857.12 | -3,205,367.11 | -3,205,367.11 |
goods(containers),specialtransportation ofgoods (tank)
| goods (containers), special transportation of goods (tank) | ||||||||
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | Subsidiary | Gas turbine power generation, waste heat power generation, power supply and heating(heating pipe network excluded), leasing of wharf, oil depots and power equipment felicities (excluding refined oil, dangerous chemicals, or flammable and explosive goods); leasing of land-use right; non-residential real estate leasing | RMB 746.8 million | 267,788,122.94 | -419,728,685.71 | 16,508,874.54 | -30,314,465.11 | -30,324,465.11 |
| Shen Nan Energy (Singapore) Co., Ltd. | Subsidiary | Agent for oils trade and spare parts of gas turbine | US $ 0.9 million | 103,704,281.62 | 101,163,025.70 | 0 | 931,993.18 | 931,993.18 |
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | Subsidiary | Equity investment, venture capital | RMB 140,918,000 | 140,279,612.23 | 140,279,612.23 | 0 | -10,538.00 | -10,538.00 |
Subsidiary disposes and acquired in the period
□ Applicable √Not applicable
Statement of main holding company and stock-jointly companiesNot applicable
IX. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
X. Risks and countermeasures
1. In terms of main business: In 2022, the Guangdong power market starts the continuous trial operation of spotelectricity. With the natural gas prices remaining high, the company’s two power plants have to fulfill the socialresponsibility of ensuring power supply, and confront with great operating pressure. In the face of theabove-mentioned unfavorable policy and industry situation, in order to minimize the loss of the main business ofelectric power, the company mainly relies on industry associations such as the Gas Turbine Special Committee,the Natural Gas Power Generation Supply Chain Special Committee, etc., actively appeals to the relevantgovernment departments to implement the gas-electricity price linkage mechanism according to the relevantdocuments and the actual operation status, and promotes the implementation of policies such as capacitycompensation, long-term subsidies, and two-part electricity price. At the same time, the subordinate power plantscontinue to strengthen the coordination work of equipment management and economic operation, and strive toincrease revenue from power generation and ancillary services.
2. Safety management: In the face of the unfavorable external environment of the normalization of COVID-19pandemic prevention and control and the continuous and sporadic outbreaks of the pandemic in many places, thecompany has continuously strengthened safety production management, consolidated the main responsibility forpandemic prevention and control and safety production, and actively carried out safety production supervision andmanagement, continued to promote system safety construction, and earnestly supervised the implementation ofannual overhaul technical transformation and daily maintenance work of units through key safety inspections,practical emergency drills, promotion of standardized overhaul management, and equipment status assessments.We make efforts to overcome unfavorable situations such as the continued high natural gas price and the repeatedpandemic, so as to ensure a stable and orderly production safety situation.
3. In terms of fuel procurement: In the first half of 2022, due to the expected supply shortage caused by theRussian-Ukrainian war, the supply reduction of Beixi-1, low inventories in Europe, and high temperature weatherin some countries, the international natural gas prices rose sharply, which drove up domestic gas prices, and thecompany's natural gas purchase price has risen sharply compared with the same period in 2021. It is expected thatthe natural gas purchase cost in the second half of 2022 will not be optimistic.Since the natural gas procurementcontract must be signed in advance, the contract gas has been basically determined when signing, due to thecharacteristics of the electric power market, it is difficult to match the expected electricity generation with theactual electricity generation, and the planned purchase quantity of natural gas is difficult to match the actualpickup quantity. If the natural gas cannot be picked up according to the contract due to the influence of electricitytransaction marketization and other factors in the later period, which may cause related risks of insufficient pickupof contractual gas quantity and fluctuations in prices of increased gas. The company will continue to optimize the
upstream and downstream cooperation, give full play to the advantages of large-scale procurement and theregulating function of multiple gas sources, and try its best to reduce the cost of natural gas procurement whileensuring the gas demand for power production.
4. In terms of lands of Nanshan Power Factory, during the reporting period, the company actively used everyopportunity to express its own demands and suggestions, but by the end of the reporting period, there was stilllittle effect. The company will keep close communication and contact with the relevant functional departments ofShenzhen and Qianhai Authority, actively follow up the implementation of the government-related planningprogress, and seriously study the land related situation of Nanshan Power Factory with legal advisers, formulatecoping strategies and work plans so as to ensure the legitimate rights and interests of the listed company and allshareholders.
Section IV. Corporate Governance
I. In the report period, the Company held annual shareholders’ general meeting andextraordinary shareholders’ general meeting
1. Shareholders’ General Meeting in the report period
| Session of meeting | Type | Ratio of investor participation | Opening date | Date of disclosure | Resolution |
| Annual General Meeting (AGM) of 2021 | AGM | 38.45% | 2022-04-15 | 2022-04-15 | Deliberated and approved proposals including: Report on the Work of BOD for year of 2021; Report on the Work of BOS for year of 2021; Financial Report for year of 2021; Profit Distribution Plan for year of 2021; Annual Report of 2021 (full-text) and its Summary; Remuneration of the Chairman for year of 2022; Appointment of Auditing Institution for year of 2022 and Remuneration Determination; |
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
II. Change of the Directors, Supervisors and Senior Executive
√Applicable □Not applicable
| Name | Title | Type | Date | Causes |
| Zhang Xiaoyin | CFO | Appointments | 2022-06-13 |
III. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either forthe semi-annual year.
IV. Implementation of the equity incentive plan, employee stock ownership plan or otheremployee incentives
□ Applicable √ Not applicable
The Company has no implementation of the equity incentive plan, employee stock ownership plan or other employee incentives inthe Period.
Section V. Environmental and Social Responsibility
I. Major environmental protectionThe listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department
√Yes □No
| Enterprise or subsidiary | Main pollutant and features | Way of discharge | Number of discharge outlet | Distribution of the discharge outlet | Emission concentration | Pollutant discharge standard implemented | Total discharge | Total approved emissions | Excessive emission |
| Shenzhen Nanshan Power Co., Ltd. | Nitrogen oxides | Organized emissions | 2 | In plant area of Nanshan Power Factory | <15 mg/m? | Implementation of “Shenzhen Blue” emission standard<15mg/m? | 20.34 tons | 457.5 tons | 0 |
| Shenzhen New Power Industrial Co., Ltd. | Nitrogen oxides | Organized emissions | 1 | In plant area of Nanshan Power Factory | <15 mg/m? | Implementation of “Shenzhen Blue” emission standard<15mg/m? | 11.45 tons | 228.75 tons | 0 |
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | Nitrogen oxides | Organized emissions | 2 | In plant area of Zhongshan Nanlang Power Plant | <25 mg/m? | Emission standards for air pollutants from thermal power plants GB13223-2011 | 0.32 tons | 324.50 tons | 0 |
Construction and operation of the pollution controlling instrumentsAll pollution prevention and control facilities are operating normally, and all pollutant discharges are stable and up to standard.Shenzhen Nanshan Power Co., Ltd and the gas units under Shenzhen New Power Industrial Co., Ltd are strictly control the pollutantemissions in line with the relevant requirement of “The Sustainability Action Plan of “Shenzhen Blue” for 2018”(Shen Fu Ban Gui(2018) No.6).
Environmental impact assessment of construction projects and other environmental protection administrative licensesAll the above three legal entities have passed the environmental impact assessment and have been filed in Guangdong EnvironmentalProtection Department. All of them have obtained the pollution discharge permits, and conduct routine environmental management instrictly accordance with the requirement of pollution discharge permits.
Emergency plan for sudden environmental incident:
The emergency plan for sudden environmental incidents has been filed in Guangdong Environmental Protection Department and thecorresponding Municipal Environmental Protection Bureau.
Environmental self-monitoring programThe environmental self-monitoring program has been prepared and reviewed by the environmental protection department; theinformation on the monitoring data is disclosed on the website of the environmental protection department on time.
Administrative penalties imposed for environmental issues during the reporting periodN/A
Other environmental information that should be disclosedN/A
Measures taken to reducing the carbon emissions during the reporting period and their effectiveness
□Applicable √Not applicable
Other environmental protection related informationN/A
The Company shall comply with the relevant disclosure requirement for electricity-related industries of Shenzhen Stock ExchangeSelf-Regulatory Guidelines for Listed Companies No.3 - Disclosure of Industry Information
II. Social Responsibility
The Company has not carried out targeted poverty alleviation work during the reporting period.
Section VI. Important EventI. Commitments that the actual controller, shareholders, related parties, acquirer and the Company havefulfilled during the reporting period and have not yet fulfilled by the end of reporting period
□Applicable √Not applicable
There was no commitments that the actual controller, shareholders, related parties, acquirer and the Companyhave fulfilled during the reporting period and have not yet fulfilled by the end of the reporting periodII. Non-operational fund occupation from controlling shareholders and its related party
□Applicable √Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.III. External guarantee out of the regulations
□Applicable √Not applicable
No external guarantee out of the regulations occurred in the period.IV. Appointment and non-reappointment (dismissal) of CPAWhether the financial report of semi-annual report has been audited
□Yes √No
The semi-annual report of the Company is unaudited.
V. Explanation from Board of Directors and Supervisory Committee for “Non-standard auditreport” that issued by CPA
□Applicable √Not applicable
VI. Explanation from the BOD on the previous year’s “non-standard audit report”
□Applicable √Not applicable
VII. Bankruptcy reorganization
□Applicable √Not applicable
No bankruptcy reorganization for the Company in reporting period.VIII. LitigationMajor litigation and arbitration
□Applicable √Not applicable
No major litigation and arbitration occurred in the Period.
Other litigation
□Applicable √Not applicable
IX. Penalty and rectification
□Applicable √Not applicable
X. Integrity of the Company and its controlling shareholders and actual controllers
√Applicable □Not applicable
During the reporting period, the company neither had any failure to implement the court’s effective judgments, nor had large amountof due and unpaid debts that were, etc., and had a good credit. During the reporting period, the company had no controllingshareholders or actual controllers.XI. Major related party transaction
1. Related party transaction with routine operation concerned
□Applicable √Not applicable
The Company has no related party transaction with routine operation concerned occurred during the reportingperiod.
2. Related party transactions by assets acquisition and sold
□Applicable ?Not applicable
No related party transactions by assets acquisition and sold for the Company in Period.
3. Main related transactions of mutual investment outside
?Applicable □Not applicable
| Co-investors | Affiliations | Investee company | Main business of the investee company | Registered capital of the investee company | Total assets of the investee company (10 thousand yuan) | Net assets of the investee company (10 thousand yuan) | Net profit of the investee company (10 thousand yuan) |
| Shenzhen Capital Holdings Co., Ltd. , Shenzhen Yuanzhi Ruixin | Affiliated corporations | Shenzhen Yuanzhi Ruixin New Generation Information Technology Private | Investment funds | 100,000.00 | 50,127.38 | 50,127.38 | 127.38 |
| Equity Investment Management Co., Ltd. | Equity Investment Fund Partnership (Limited Partnership) | ||
| Progress of major on-going projects of the investee company (if applicable) | N/A | ||
4. Contact of related credit and debt
□Applicable √Not applicable
No contact of related credit and debt occurred in the Period
5. Contact with the related finance companies
□Applicable √Not applicable
There are no deposits, loans, credits or other financial business between the Company, the related financecompanies and related parties.
6. Transactions between the finance company controlled by the Company and related parties
□Applicable √Not applicable
There are no deposits, loans, credits or other financial business between the finance companies controlled by theCompany and related parties
7. Other major related party transactions
□Applicable √Not applicable
There are no other major related party transactions occurred in the periodXII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
√Applicable □Not applicable
Explanation on trustIn accordance with the “Assets (Generator Sets) Custody Operation Contract of Shenzhen New Power Industrial Co., Ltd.” signedwith the New Power Company, the Company entrusted with management for the generator assets owned by New Power Company(wholly-owned subsidiary of the Company). During the reporting period, the Company received an assets custody services of 10.0855million Yuan
Gains/losses to the Company from projects that reached over 10% in total profit of the Company in reporting period
□Applicable √Not applicable
No gains or losses to the Company from projects that reached over 10% in total profit of the Company in reporting period.
(2) Contract
□Applicable √Not applicable
No contract for the Company in reporting period
(3) Leasing
□Applicable √Not applicable
No leasing for the Company in reporting period.
2. Major guarantees
□Applicable √Not applicable
No major guarantees occurred in the Period
3.Trust financing
√Applicable □Not applicable
In 10 thousand Yuan
| Type | Capital sources | Amount occurred | Outstanding balance | Overdue amount | Amount with impairment accrual for the overdue financial products which has not been recovered |
| Bank financial products | Own funds | 146,656.28 | 120,790.28 | 0 | 0 |
| Total | 146,656.28 | 120,790.28 | 0 | 0 | |
Details of the single major amount, or high-risk trust investment with low security, poor fluidity and non-guaranteed
□Applicable √Not applicable
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□Applicable √Not applicable
4. Other material contracts
√Applicable □Not applicable
| The name | The name | Con | The date | The book | The asses | Name of | The base | Pricing princip | Barg | Whe | Inci | The perfo | Th | The |
| of the contracting company | of the contracted company | tract object | of signature of the contract | value of the assets involved in the contract (10 thousand Yuan) (if applicable) | sed value of the assets involved in the contract (10 thousand Yuan) (if applicable) | the evaluation organization (if applicable) | date evaluation (if applicable) | les | ain price (10 thousand Yuan) | ther connected transaction (Y/N) | dence relation | rmance by the end of the term | e date of disclosure | index of disclosure |
| The Company,New Power Company | Shenzhen Gas Group Co., Ltd. | Pipeline natural gas | 2018-05-14 | N/A | The contract is a framework agreement, price of the NG will decide through consultation by supplemental agreement between the two parties | N | Not applicable | In progress | Failure to meet specific disclosure requirements |
XIII. Other important events
√Applicable □Not applicable
1.The company has been recognized as a high-tech enterprise: On January 17, 2022, the company received the "Announcement onthe Filing of the Second Batch of High-tech Enterprises Recognized by Shenzhen in 2021" issued by the Office of the Leading Groupfor Recognition and Management of National High-tech Enterprises, the company was recognized as a high-tech enterprise accordingto the "Filing of the Second batch of High-tech Enterprises Recognized by Shenzhen in 2021". (For details, please refer to the Notice
of the Company Recognized as a High-Tech Enterprise disclosed by the company in China Securities Journal, Securities Times,Hong Kong Commercial Daily and www.cninfo.com.cn, Notice No. : 2022-001)
2.Start on the shutdown and withdrawal of two sets of 9E gas-fired units of Shen Nan Dian (Zhongshan) Electric Power Co., Ltd.: OnFebruary 21, 2022, upon consideration and approval at the fifth extraordinary meeting of the ninth board of directors of the company,the company launched the shutdown and withdrawal of two sets of 9E gas-fired units in Shen Nan Dian (Zhongshan) Power Co., Ltd.(For details, please refer to the Resolution of the fifth extraordinary meeting of the ninth BOD disclosed by the company in ChinaSecurities Journal, Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn, Notice No. : 2022-003)
3.Assets disposal of units 7# and 9# of Nanshan Power Factory: On March 23, 2022, the company held the 3
rd session of the 9
thboardof directors, reviewed and approved the "Proposal on the Assets Disposal of Units 7# and 9# of Nanshan Power Factory", agreed tocarry out the assets disposal of units 7# and 9# of Nanshan Power Factory, and agreed to publicly list and transfer on ShenzhenUnited Property and Equity Exchange (hereinafter referred to as "Shenzhen Stock Exchange") at the valuation of gas turbine 7# ,boiler 7# and steam turbine 9# carried out by Shenzhen Pengxin Assets Appraisal Land Real Estate Appraisal Co., Ltd. by referringto the relevant provisions of the "Measures for the Supervision and Administration of State-owned Assets Transactions of Enterprise".In May, the company received the "Transferee Qualification Confirmation Letter" and "Online Bidding Transaction ConfirmationLetter" from the Shenzhen Stock Exchange. According to the above documents, Shanghai Qingjie New Energy Technology Co., Ltd.became the transferee of the transfer project including 9Egas turbine units, and the transfer price was 10,505,930 yuan; ShaanxiJinhui Renewable Resources Co., Ltd. successfully acquired a batch of equipment such as waste heat boiler 7# and steam turbine 9#through open bidding at the online bidding meeting, and the transaction price was 6,336,014 yuan. (For details, please refer to theResolution of 3
rd Session of 9
thBOD disclosed by the company in China Securities Journal, Securities Times, Hong KongCommercial Daily and www.cninfo.com.cn, Notice No. : 2022-004; and Voluntary Disclosure of the Progress of Assets Disposal onUnits 7# and 9# of Nanshan Power Factory, Notice No. : 2022-016 )
4. Resignation of Independent Director: On May 13, 2022, the board of directors of the company received a written resignation reportsubmitted by Mr. Mo Jianmin, an independent director of the company. Due to the resignation of Mr. Mo Jianmin, the number ofindependent directors of the company will be less than one-third of the members of the board of directors. According to relevantregulations, his resignation report will take effect after the election of new independent directors at the company's general meeting ofshareholders. Prior to this, Mr. Mo Jianmin will continue to perform his duties in accordance with relevant laws, administrativeregulations, departmental rules and normative documents. On August 2, 2022, the first extraordinary general meeting of shareholdersin 2022 deliberated and passed the proposal on by election of independent directors. Mr. Mo Jianmin's resignation took effect afterMs. Huang Xiqin was elected as an independent director of the ninth board of directors of the company. (For details, please refer tothe Notice on Resignation of Independent Director disclosed by the company in China Securities Journal, Securities Times, HongKong Commercial Daily and www.cninfo.com.cn, Notice No. : 2022-017,2022-031)
5. Investment in Yuanzhi Ruixin New Generation Information Technology Equity Investment Fund: On May 25, 2022, the companyreceived a notice from the fund manager, Shenzhen Yuanzhi Ruixin Equity Investment Management Co., Ltd., that Shenzhen YuanzhiRuixin New Generation Information Technology Private Equity Investment Fund Partnership (Limited Partnership) had completedthe fund filing procedures at the Asset Management Association of China in accordance with the requirements of the SecuritiesInvestment Fund Law and the Interim Measures for the Supervision and Administration of Private Investment Funds and other lawsand regulations. (For details, please refer to the Notice on Completion of the Private Investment Funding Filing of Shenzhen YuanzhiRuixin New Generation Information Technology Private Equity Investment Fund Partnership (Limited Partnership) disclosed by thecompany in China Securities Journal, Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn, Notice No. :
2022-018)
6. The independent energy storage project of the company and its holding subsidiary Shen Nan Dian (Zhongshan) Electric Power Co.,Ltd.: In June 2022, the company and its holding subsidiary Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. respectivelyobtained the "Shenzhen Social Investment Project Record Certificate" issued by Shenzhen Nanshan District Development andReform Bureau and the "Guangdong Provincial Enterprise Investment Project Record Certificate" issued by Zhongshan Developmentand Reform Bureau, approving the filing of the independent energy storage demonstration project phase I of the technicaltransformation and upgrading of the decommissioned equipment of Shennandian Nanshan Power Factory and the filing of the300MW/600MWh independent energy storage power station (the first-phase project) in Cuiheng New District, Zhongshan City. (Fordetails, please refer to the Notice on Obtaining a Record of the Independent Energy Storage Project of the company and its holdingsubsidiary Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. disclosed by the company in China Securities Journal, SecuritiesTimes, Hong Kong Commercial Daily and www.cninfo.com.cn, Notice No. : 2022-020)
7. Receipt of the VAT withholding Tax Refund at Period-end: On June 10, 2022, the Company received a tax refund of317,249,405.40 yuan. (For details, please refer to the Notice on Receipt of VAT Retained Tax Refund at Period-end disclosed by thecompany in China Securities Journal, Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn, Notice No. :
2022-021)
8. Abnormal fluctuations in stock trading: On June 17, June 20, and June 21, 2022, the trading price of the company's A-share stock(stock abbreviation: Shennandian A, stock code: 000037) had the closing price rise with a cumulative deviation value rate of morethan 20% for three consecutive trading days; while the cumulative deviation value rate of closing price decline reached more than20% for three consecutive trading days on June 24, June 27, and June 28, 2022. According to relevant regulations of the "TradingRules of Shenzhen Stock Exchange", the above two stock trading fluctuations are abnormal fluctuations in stock trading, and thecompany has separately disclosed the "Announcement on Abnormal Fluctuations in Stock Trading". (For details, please refer to theNotice on Abnormal Fluctuations in Stock Trading disclosed by the company in China Securities Journal, Securities Times, HongKong Commercial Daily and www.cninfo.com.cn, Notice No. : 2022-022, 2022-023)
In addition to the above matters, the company actively promoted the investment in Zhuhai Hengqin Zhuozhi Investment Partnership(Limited Partnership), and there was no progress or change in meeting the disclosure standards during the reporting period. Therewas no progress or change in the refund of the company’s "Project Technical Improvement Benefit Fund" or in the Xinjiang aidproject of Guangdong Province in which the company participated in 2013 during the reporting period.
XIV. Significant event of subsidiary of the Company
□Applicable √Not applicable
Section VII. Changes Unit: shares and Particulars about ShareholdersI. Changes Unit: share Capital
1. Changes Unit: share Capital
Unit: share
| Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
| Amount | Proportion | New shares issued | Bonus shares | Capitalization of public reserve | Others | Subtotal | Amount | Proportion | |
| I. Restricted shares | 12,994 | 0.0022% | 12,994 | 0.0022% | |||||
| 1. State-owned shares | |||||||||
| 2. State-owned legal person’s shares | |||||||||
| 3. Other domestic shares | 12,994 | 0.0022% | 12,994 | 0.0022% | |||||
| Including: Domestic legal person’s shares | |||||||||
| Domestic natural person’s shares | 12,994 | 0.0022% | 12,994 | 0.0022% | |||||
| 4. Foreign shares | |||||||||
| Including: Foreign legal person’s shares | |||||||||
| Foreign natural person’s shares | |||||||||
| II. Unrestricted shares | 602,749,602 | 99.9978% | 602,749,602 | 99.9978% | |||||
| 1. RMB Ordinary shares | 338,895,156 | 56.2236% | 338,895,156 | 56.2236% | |||||
| 2. Domestically listed foreign shares | 263,854,446 | 43.7742% | 263,854,446 | 43.7742% | |||||
| 3. Overseas listed foreign shares | |||||||||
| 4. Others | |||||||||
| III. Total shares | 602,762,596 | 100.00% | 602,762,596 | 100.00% | |||||
Reasons for share changed
□Applicable √Not applicable
Approval of share changed
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Progress of shares buy-back (repurchase)
□Applicable √Not applicable
Implementation progress of reducing holdings of shares buy-back by centralized bidding
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable tocommon shareholders of Company in latest year and period
□Applicable √Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□Applicable √Not applicable
2. Changes of restricted shares
□Applicable ?Not applicable
II. Securities issuance and listing
□Applicable √Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
Unit: share
| Total number of ordinary shareholders at end of the reporting period | 47,808 | Total number of preferred shareholders whose voting rights were restored at end of the reporting period (if applicable) (see note 8) | 0 | |||||
| Particulars about common shares held above 5% by shareholders or top ten common shareholders | ||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Amount of common shares held at the end of | Changes in report period | Amount of restricted common shares held | Amount of common shares held without | Information of shares pledged, tagged or frozen | |
| State | Amount | |||||||
| reporting period | restriction | of share | ||||||
| HONG KONG NAM HOI (INTERNATIONAL) LTD. | Overseas legal person | 15.28% | 92,123,248 | 92,123,248 | ||||
| Shenzhen Guangju Industrial Co., Ltd | State-owned legal person | 12.22% | 73,666,824 | 73,666,824 | ||||
| Shenzhen Energy Group Co., Ltd. | State-owned legal person | 10.80% | 65,106,130 | 65,106,130 | ||||
| BOCI SECURITIES LIMITED | Overseas legal person | 2.37% | 14,267,038 | -343,824 | 14,267,038 | |||
| Zeng Ying | Domestic nature person | 1.19% | 7,159,600 | 7,159,600 | ||||
| China Merchants Securities H.K. Co., Ltd. | Overseas legal person | 0.91% | 5,480,428 | -137,800 | 5,480,428 | |||
| Meiyi Investment Property Co., Ltd. | Domestic non state-owned legal person | 0.87% | 5,218,100 | 100 | 5,218,100 | |||
| LISHERYNZHANMING | Overseas natural person | 0.65% | 3,922,328 | 385,828 | 3,922,328 | |||
| Haitong International Securities Company Limited-Account Client | Overseas legal person | 0.65% | 3,908,357 | -1,000 | 3,908,357 | |||
| Guosen Securities (HK) Brokerage Limited | Overseas legal person | 0.61% | 3,651,901 | 3,651,901 | ||||
| Strategy investors or general corporation comes top 10 shareholders due to rights issue (if applicable) (see note 3) | Not applicable | |||||||
| Explanation on associated relationship among the aforesaid shareholders | 1. 100% equity of HONG KONG NAM HOI (INTERNATIONAL) LIMITED 100% held by Shenzhen Energy Group Co., Ltd.; 2. The Company is unknown whether there exists associated relationship or belongs to the consistent actor among the other shareholders. | |||||||
| Description of the above shareholders in relation to | N/A | |||||||
| delegate/entrusted voting rights and abstention from voting rights. | |||
| Special note on the repurchase account among the top 10 shareholders (if applicable) (see note 11) | N/A | ||
| Particular about top ten shareholders with un-lock up common stocks held | |||
| Shareholders’ name | Amount of common shares held without restriction at Period-end | Type of shares | |
| Type | Amount | ||
| HONG KONG NAM HOI (INTERNATIONAL) LTD. | 92,123,248 | Domestically listed foreign shares | 92,123,248 |
| Shenzhen Guangju Industrial Co., Ltd | 73,666,824 | RMB common shares | 73,666,824 |
| Shenzhen Energy Group Co., Ltd. | 65,106,130 | RMB common shares | 65,106,130 |
| BOCI SECURITIES LIMITED | 14,267,038 | Domestically listed foreign shares | 14,267,038 |
| Zeng Ying | 7,159,600 | Domestically listed foreign shares | 7,159,600 |
| China Merchants Securities H.K. Co., Ltd. | 5,480,428 | Domestically listed foreign shares | 5,480,428 |
| Meiyi Investment Property Co., Ltd. | 5,218,100 | RMB common shares | 5,218,100 |
| LISHERYNZHANMING | 3,922,328 | Domestically listed foreign shares | 3,922,328 |
| Haitong International Securities Company Limited-Account Client | 3,908,357 | Domestically listed foreign shares | 3,908,357 |
| Guosen Securities (HK) Brokerage Limited | 3,651,901 | Domestically listed foreign shares | 3,651,901 |
| Expiation on associated relationship or consistent actors within the top 10 un-restrict shareholders and between top 10 un-restrict shareholders and top 10 shareholders | 1. 100% equity of HONG KONG NAM HOI (INTERNATIONAL) LIMITED 100% held by Shenzhen Energy Group Co., Ltd.; 2. The Company is unknown whether there exists associated relationship or belongs to the consistent actor among the other shareholders. | ||
| Explanation on top 10 shareholders involving margin business (if applicable) (see note 4) | N/A | ||
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-backagreement dealing in reporting period
□Yes √No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have nobuy-back agreement dealing in reporting period.IV. Changes of shares held by directors, supervisors and senior executives
□Applicable √Not applicable
Shares held by directors, supervisors and senior officers have no changes in reporting period, found more details in Annual Report2021.
V. Changes in controlling shareholders or actual controllersChange of controlling shareholder during the reporting period
□Applicable √Not applicable
The Company had no change of controlling shareholder during the reporting period
Change of actual controller during the reporting period
□Applicable √Not applicable
The Company had no change of actual controller during the reporting period
Section VIII. Preferred Stock
□Applicable √Not applicable
The Company had no preferred stock in the Period.
Section IX. Corporate Bonds
□Applicable √Not applicable
Section X. Financial Report
I. Audit reportWhether the semi annual report is audited
□Yes √No
The company's semi annual financial report has not been audited
II. Financial StatementUnits of the annotations of Financial Statement are CNY/RMB
1. Consolidated balance sheet
| Item | June 30, 2022 | December 31, 2021 |
| Current assets: | ||
| Monetary fund | 470,018,109.19 | 689,604,633.59 |
| Trading financial assets | 1,280,776,513.22 | 632,874,406.39 |
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | 136,622,627.23 | 73,610,161.02 |
| Receivable financing | ||
| Accounts paid in advance | 35,570,753.71 | 64,415,236.66 |
| Other account receivable | 27,889,289.20 | 25,841,206.66 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Inventory | 86,153,552.73 | 88,500,991.13 |
| Contractual assets | 1,040,000.00 | |
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 8,925,003.96 | 331,868,661.62 |
| Total current assets | 2,045,955,849.24 | 1,907,755,297.07 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 5,515,052.42 | 6,986,655.19 |
| Other equity instrument investment | 300,615,000.00 | 200,615,000.00 |
| Other non-current financial assets | ||
| Investment real estate | 1,917,733.00 | 2,009,051.80 |
| Fixed assets | 616,207,380.43 | 643,256,398.30 |
| Construction in process | 5,609,774.20 | 6,088,768.51 |
| Productive biological asset |
Oil and gas asset
| Oil and gas asset | ||
| Right-of-use assets | ||
| Intangible assets | 20,121,466.00 | 20,465,906.86 |
| Expense on Research and Development | ||
| Goodwill | ||
| Long-term expenses to be apportioned | 1,467,794.74 | 1,716,460.30 |
| Deferred income tax asset | 1,109,286.38 | 1,109,286.38 |
| Other non-current asset | ||
| Total non-current asset | 952,563,487.17 | 882,247,527.34 |
| Total assets | 2,998,519,336.41 | 2,790,002,824.41 |
| Current liabilities: | ||
| Short-term loans | 1,334,338,596.65 | 858,444,163.25 |
| Trading financial liability | ||
| Derivative financial liability | ||
| Note payable | 135,025,883.27 | |
| Account payable | 15,615,185.36 | 6,703,466.71 |
| Accounts received in advance | ||
| Contractual liability | ||
| Wage payable | 43,789,015.63 | 41,533,020.96 |
| Taxes payable | 5,501,289.25 | 4,145,839.89 |
| Other account payable | 22,717,231.20 | 62,678,254.02 |
| Including: Interest payable | ||
| Dividend payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | ||
| Total current liabilities | 1,421,961,318.09 | 1,108,530,628.10 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | ||
| Long-term wages payable | ||
| Accrual liability | 15,000,000.00 | 15,000,000.00 |
| Deferred income | 84,931,517.77 | 88,079,970.09 |
| Deferred income tax liabilities | ||
| Other non-current liabilities | 50,310.78 | 50,310.78 |
| Total non-current liabilities | 99,981,828.55 | 103,130,280.87 |
| Total liabilities | 1,521,943,146.64 | 1,211,660,908.97 |
| Shareholders' equity: | ||
| Share capital | 602,762,596.00 | 602,762,596.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities |
Capital public reserve
| 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 |
| Retained profit | 225,253,070.72 | 319,351,219.81 |
| Total equity attributable to shareholders of the parent company | 1,521,194,986.42 | 1,615,293,135.51 |
| Minority interests | -44,618,796.65 | -36,951,220.07 |
| Total shareholders' equity | 1,476,576,189.77 | 1,578,341,915.44 |
| Total liabilities and shareholders' equity | 2,998,519,336.41 | 2,790,002,824.41 |
Legal Representative: Li XinweiPerson in charge of accounting works: Chen YuhuiChief Financial Officer: Zhang XiaoyinPerson in charge of accounting institute: Lin Xiaojia
2. Balance Sheet of Parent Company
| Item | June 30, 2022 | December 31, 2021 |
| Current assets: | ||
| Monetary fund | 445,197,216.30 | 592,751,213.88 |
| Trading financial assets | 1,270,776,513.22 | 622,874,406.39 |
| Derivative financial assets | ||
| Note receivable | 180,000,000.00 | |
| Account receivable | 71,242,570.68 | 35,966,056.15 |
| Receivable financing | ||
| Accounts paid in advance | 8,619,927.25 | 60,381,018.05 |
| Other account receivable | 560,100,745.56 | 618,436,063.60 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Inventory | 79,205,383.71 | 79,904,055.96 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | 321,673,866.15 | |
| Total current assets | 2,615,142,356.72 | 2,331,986,680.18 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investment | 287,301,269.81 | 287,301,269.81 |
| Other equity instrument investment | 160,615,000.00 | 60,615,000.00 |
Other non-current financial assets
| Other non-current financial assets | ||
| Investment real estate | ||
| Fixed assets | 291,918,670.25 | 314,308,562.41 |
| Construction in process | 1,156,738.42 | 1,399,062.85 |
| Productive biological assets | ||
| Oil and natural gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 219,783.25 | 247,959.31 |
| Research and development costs | ||
| Goodwill | ||
| Long-term deferred expenses | 1,309,953.07 | 1,513,521.01 |
| Deferred income tax assets | ||
| Other non-current assets | ||
| Total non-current assets | 742,521,414.80 | 665,385,375.39 |
| Total assets | 3,357,663,771.52 | 2,997,372,055.57 |
| Current liabilities | ||
| Short-term loans | 634,338,596.65 | 458,444,163.25 |
| Trading financial liability | ||
| Derivative financial liability | ||
| Note payable | 700,000,000.00 | 535,025,883.27 |
| Account payable | 9,768,358.22 | 1,280,357.11 |
| Accounts received in advance | ||
| Contractual liability | ||
| Wage payable | 31,876,666.22 | 29,251,444.37 |
| Taxes payable | 2,019,199.96 | 562,233.61 |
| Other accounts payable | 162,958,997.99 | 132,397,663.39 |
| Including: Interest payable | ||
| Dividend payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | ||
| Total current liabilities | 1,540,961,819.04 | 1,156,961,745.00 |
| 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 | ||
| Accrual liabilities | ||
| Deferred income | 50,316,898.18 | 52,036,600.90 |
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 50,316,898.18 | 52,036,600.90 |
| Total liabilities | 1,591,278,717.22 | 1,208,998,345.90 |
Shareholders' equity:
| Shareholders' 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 | 540,751,021.00 | 562,739,676.37 |
| Total shareholders' equity | 1,766,385,054.30 | 1,788,373,709.67 |
| Total liabilities and shareholders' equity | 3,357,663,771.52 | 2,997,372,055.57 |
Legal Representative: Li XinweiPerson in charge of accounting works: Chen YuhuiChief Financial Officer: Zhang XiaoyinPerson in charge of accounting institute: Lin Xiaojia
3. Consolidated Profit Statement
| Item | January-June 2022 | January-June 2021 |
| I. Total operating income | 229,243,542.07 | 376,602,393.38 |
| Including: Operating income | 229,243,542.07 | 376,602,393.38 |
| II. Total operating cost | 362,962,644.74 | 399,762,506.97 |
| Including: Operating cost | 282,486,432.21 | 351,210,223.91 |
| Tax and extras | 2,896,262.61 | 1,646,013.40 |
| Sales expense | 696,436.80 | |
| Administrative expense | 43,777,644.68 | 40,014,168.55 |
| R&D expense | 17,072,589.13 | 3,360,629.60 |
| Financial expense | 16,729,716.11 | 2,835,034.71 |
| Including: Interest expenses | 20,539,845.79 | 13,028,372.76 |
| Interest income | 3,594,848.74 | 10,344,030.33 |
| Add: other income | 4,440,645.78 | 3,368,979.50 |
| Investment income (Loss is listed with “-”) | 27,741,227.07 | 12,828,359.95 |
| Including: Investment income on affiliated company and joint venture | -1,471,602.77 | -1,148,715.33 |
| The termination of income recognition for financial assets measured by amortized cost | ||
| 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 “-”) | 974,699.74 |
III. Operating profit (Loss is listed with “-”)
| III. Operating profit (Loss is listed with “-”) | -101,537,229.82 | -5,988,074.40 |
| Add: Non-operating income | 5,261,868.55 | |
| Less: Non-operating expense | 228,495.85 | 35,388.00 |
| IV. Total profit (Loss is listed with “-”) | -101,765,725.67 | -761,593.85 |
| Less: Income tax expense | ||
| V. Net profit (Net loss is listed with “-”) | -101,765,725.67 | -761,593.85 |
| (i) Classify by business continuity | -101,765,725.67 | -761,593.85 |
| 1.continuous operating net profit (net loss listed with ‘-”) | -101,765,725.67 | -761,593.85 |
| 2.termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership | -101,765,725.67 | -761,593.85 |
| 1.Net profit attributable to owner’s of parent company | -94,098,149.09 | 1,456,269.68 |
| 2.Minority shareholders’ gains and losses | -7,667,576.58 | -2,217,863.53 |
| 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(The effective portion of the gain/loss from cash flow hedge) | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | -101,765,725.67 | -761,593.85 |
| Total comprehensive income attributable to owners of parent Company | -94,098,149.09 | 1,456,269.68 |
| Total comprehensive income attributable to minority shareholders | -7,667,576.58 | -2,217,863.53 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share (yuan/share) | -0.1561 | 0.0024 |
| (ii) Diluted earnings per share (yuan/share) | -0.1561 | 0.0024 |
Legal Representative: Li XinweiPerson in charge of accounting works: Chen YuhuiChief Financial Officer: Zhang Xiaoyin
Person in charge of accounting institute: Lin Xiaojia
4. Profit Statement of Parent Company
| Item | January-June 2022 | January-June 2021 |
| I. Operating income | 129,074,352.66 | 184,931,162.25 |
| Less: Operating cost | 153,243,699.14 | 171,383,039.58 |
| Taxes and surcharge | 1,561,901.55 | 182,295.14 |
| Sales expenses | - | - |
| Administration expenses | 14,624,528.90 | 18,205,121.93 |
| R&D expenses | 11,637,676.90 | - |
| Financial expenses | 1,145,966.46 | -8,003,413.78 |
| Including: interest expenses | 18,356,302.31 | 13,876,981.75 |
| Interest income | 17,449,061.98 | 21,956,978.18 |
| Add: other income | 2,453,965.18 | 1,894,186.55 |
| Investment income (Loss is listed with “-”) | 28,915,295.59 | 13,977,075.28 |
| Including: Investment income on affiliated Company and joint venture | ||
| The termination of income recognition for financial assets measured by amortized cost | ||
| 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 “-”) | 944,667.70 | |
| II. Operating profit (Loss is listed with “-”) | -21,770,159.52 | 19,980,048.91 |
| Add: Non-operating income | ||
| Less: Non-operating expense | 218,495.85 | |
| III. Total Profit (Loss is listed with “-”) | -21,988,655.37 | 19,980,048.91 |
| Less: Income tax | ||
| IV. Net profit (Net loss is listed with “-”) | -21,988,655.37 | 19,980,048.91 |
| (i) continuous operating net profit (net loss listed with ‘-”) | -21,988,655.37 | 19,980,048.91 |
| (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 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
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve(The effective portion of the gain/loss from cash flow hedge) | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| VI. Total comprehensive income | -21,988,655.37 | 19,980,048.91 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share (yuan/share) | ||
| (ii) Diluted earnings per share (yuan/share) |
Legal Representative: Li XinweiPerson in charge of accounting works: Chen YuhuiChief Financial Officer: Zhang XiaoyinPerson in charge of accounting institute: Lin Xiaojia
5. Consolidated Cash Flow Statement
| Item | January-June 2022 | January-June 2021 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 210,746,338.10 | 455,910,102.76 |
| Write-back of tax received | 321,785,326.40 | 188,709.78 |
| Other cash received concerning operating activities | 45,493,756.61 | 15,878,060.82 |
| Subtotal of cash inflow arising from operating activities | 578,025,421.11 | 471,976,873.36 |
| Cash paid for purchasing commodities and receiving labor service | 283,749,702.63 | 287,613,597.56 |
| Cash paid to/for staff and workers | 64,322,418.53 | 79,004,549.15 |
| Taxes paid | 7,023,037.32 | 11,130,068.18 |
| Other cash paid concerning operating activities | 22,342,179.33 | 25,307,945.48 |
| Subtotal of cash outflow arising from operating activities | 377,437,337.81 | 403,056,160.37 |
| Net cash flows arising from operating activities | 200,588,083.30 | 68,920,712.99 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | ||
| Cash received from investment income | 19,707,290.27 | 13,595,677.64 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 1,812,386.50 | |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 5,000,000.00 | |
| Subtotal of cash inflow from investing activities | 19,707,290.27 | 20,408,064.14 |
Cash paid for purchasing fixed, intangible and otherlong-term assets
| Cash paid for purchasing fixed, intangible and other long-term assets | 2,242,860.09 | 28,044,760.20 |
| Cash paid for investment | 747,899,274.61 | 434,905,964.38 |
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | ||
| Subtotal of cash outflow from investing activities | 750,142,134.70 | 462,950,724.58 |
| Net cash flows arising from investing activities | -730,434,844.43 | -442,542,660.44 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | 42,483.00 | |
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | ||
| Cash received from loans | 1,021,949,358.06 | 514,022,740.80 |
| Other cash received concerning financing activities | ||
| Subtotal of cash inflow from financing activities | 1,021,949,358.06 | 514,065,223.80 |
| Cash paid for settling debts | 706,518,623.08 | 438,233,285.00 |
| Cash paid for dividend and profit distributing or interest paying | 5,466,201.94 | 14,928,444.20 |
| Including: Dividend and profit of minority shareholder paid by subsidiaries | ||
| Other cash paid concerning financing activities | ||
| Subtotal of cash outflow from financing activities | 711,984,825.02 | 453,161,729.20 |
| Net cash flows arising from financing activities | 309,964,533.04 | 60,903,494.60 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 295,703.69 | -59,561.89 |
| V. Net increase of cash and cash equivalents | -219,586,524.40 | -312,778,014.74 |
| Add: Balance of cash and cash equivalents at the period -begin | 689,604,633.59 | 764,601,272.21 |
| VI. Balance of cash and cash equivalents at the period -end | 470,018,109.19 | 451,823,257.47 |
Legal Representative: Li XinweiPerson in charge of accounting works: Chen YuhuiChief Financial Officer: Zhang XiaoyinPerson in charge of accounting institute: Lin Xiaojia
6. Cash Flow Statement of Parent Company
| Item | January-June 2022 | January-June 2021 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 195,459,447.73 | 339,874,588.88 |
| Write-back of tax received | 317,508,755.71 | 181,606.65 |
| Other cash received concerning operating activities | 882,162,936.47 | 81,393,879.95 |
Subtotal of cash inflow arising from operating activities
| Subtotal of cash inflow arising from operating activities | 1,395,131,139.91 | 421,450,075.48 |
| Cash paid for purchasing commodities and receiving labor service | 139,104,100.10 | 115,934,173.38 |
| Cash paid to/for staff and workers | 42,760,321.94 | 56,654,760.87 |
| Taxes paid | 366,550.16 | 909,616.90 |
| Other cash paid concerning operating activities | 358,690,786.29 | 149,731,282.02 |
| Subtotal of cash outflow arising from operating activities | 540,921,758.49 | 323,229,833.17 |
| Net cash flows arising from operating activities | 854,209,381.42 | 98,220,242.31 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | ||
| Cash received from investment income | 19,707,290.27 | 13,595,677.64 |
| Net cash received from disposal of fixed, intangible and other long-term assets | - | 1,756,774.50 |
| Net cash received from disposal of subsidiaries and other units | - | - |
| Other cash received concerning investing activities | - | - |
| Subtotal of cash inflow from investing activities | 19,707,290.27 | 15,352,452.14 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 780,194.99 | 26,800,456.86 |
| Cash paid for investment | 747,899,274.61 | 315,905,964.38 |
| Net cash received from subsidiaries and other units obtained | - | 118,957,517.00 |
| Other cash paid concerning investing activities | ||
| Subtotal of cash outflow from investing activities | 748,679,469.60 | 461,663,938.24 |
| Net cash flows arising from investing activities | -728,972,179.33 | -446,311,486.10 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | ||
| Cash received from loans | 439,191,858.06 | 514,022,740.80 |
| Other cash received concerning financing activities | ||
| Subtotal of cash inflow from financing activities | 439,191,858.06 | 514,022,740.80 |
| Cash paid for settling debts | 706,518,623.08 | 438,233,285.00 |
| Cash paid for dividend and profit distributing or interest paying | 5,466,201.94 | 14,928,444.20 |
| Other cash paid concerning financing activities | - | - |
| Subtotal of cash outflow from financing activities | 711,984,825.02 | 453,161,729.20 |
| Net cash flows arising from financing activities | -272,792,966.96 | 60,861,011.60 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 1,767.29 | -785.91 |
| V. Net increase of cash and cash equivalents | -147,553,997.58 | -287,231,018.10 |
| Add: Balance of cash and cash equivalents at the period -begin | 592,751,213.88 | 656,244,294.18 |
VI. Balance of cash and cash equivalents at the period -end
| VI. Balance of cash and cash equivalents at the period -end | 445,197,216.30 | 369,013,276.08 |
Legal Representative: Li XinweiPerson in charge of accounting works: Chen YuhuiChief Financial Officer: Zhang XiaoyinPerson in charge of accounting institute: Lin Xiaojia
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Period
| Item | January-June 2022 | ||||||||||||||
| 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 | 319,351,219.81 | 1,615,293,135.51 | -36,951,220.07 | 1,578,341,915.44 | |||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. Balance at year-begin | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 319,351,219.81 | 1,615,293,135.51 | -36,951,220.07 | 1,578,341,915.44 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | -94,098,149.09 | -94,098,149.09 | -7,667,576.58 | -101,765,725.67 | |||||||||||
| (i) Total comprehensive income | -94,098,149.09 | -94,098,149.09 | -7,667,576.58 | -101,765,725.67 | |||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
3. Amount
reckoned intoowners equitywithshare-basedpayment
| 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 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 | -2,500,000.00 | 332,908,397.60 | 225,253,070.72 | 1,521,194,986.42 | -44,618,796.65 | 1,476,576,189.77 |
Last Period
| Item | January-June 2021 | ||
| Owners’ equity attributable to the parent Company | Minorit | Total | |
Sharecapital
| 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 | y interests | owners’ equity | |||
| 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 | 758,799,931.94 | 2,054,741,847.64 | 33,000,673.95 | 2,087,742,521.59 | |||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. Balance at year-begin | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 758,799,931.94 | 2,054,741,847.64 | 33,000,673.95 | 2,087,742,521.59 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | 1,456,269.68 | 1,456,269.68 | -2,217,863.53 | -761,593.85 | |||||||||||
| (i) Total comprehensive income | 1,456,269.68 | 1,456,269.68 | -2,217,863.53 | -761,593.85 | |||||||||||
| (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. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||||
| 4. Other | |||||||||||||||
(IV) Carryingforwardinternalowners’ equity
| (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 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 760,256,201.62 | 2,056,198,117.32 | 30,782,810.42 | 2,086,980,927.74 |
Legal Representative: Li XinweiPerson in charge of accounting works: Chen YuhuiChief Financial Officer: Zhang XiaoyinPerson in charge of accounting institute: Lin Xiaojia
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Period
| Item | January-June 2022 | |||||||||||
| 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 securiti | Other | ||||||||||
es
| es | ||||||||||||
| I. Balance at the end of the last year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 562,739,676.37 | 1,788,373,709.67 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. Balance at year-begin | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 562,739,676.37 | 1,788,373,709.67 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | -21,988,655.37 | -21,988,655.37 | ||||||||||
| (i) Total comprehensive income | -21,988,655.37 | -21,988,655.37 | ||||||||||
| (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 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 definedbenefit plans
| 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 | 540,751,021.00 | 1,766,385,054.30 |
Last period
| Item | January-June 2021 | |||||||||||
| 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 | 685,077,973.07 | 1,910,712,006.37 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. Balance at year-begin | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 685,077,973.07 | 1,910,712,006.37 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | 19,980,048.91 | 19,980,048.91 | ||||||||||
| (i) Total comprehensive income | 19,980,048.91 | 19,980,048.91 | ||||||||||
| (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 equitywithshare-basedpayment
| 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 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 | 705,058,021.98 | 1,930,692,055.28 |
Legal Representative: Li XinweiPerson in charge of accounting works: Chen YuhuiChief Financial Officer: Zhang XiaoyinPerson in charge of accounting institute: Lin Xiaojia
Shenzhen Nanshan Power Co., Ltd.Annotations to the semi-annual financial statement of 2022(Unless otherwise stated, the amount of unit is RMB/CNY)
I. Company Profile
(1) Profile
Shenzhen Nanshan Power Co., Ltd (hereinafter, “Company” or “the Company” ) was reorganizedto be a joint-stock enterprise from a foreign investment enterprise on 25 November 1993, upon theapproval of General Office of Shenzhen Municipal Government with Document Shen Fu Ban Fu[1993] No.897.
After approved by Document Shen Zhu Ban Fu [1993] No.179 issued by Shenzhen SecuritiesRegulatory Office, on 3 January 1994, the Company offered 40,000,000 RMB common shares and37,000,000 domestically listed foreign shares in and out of China. And the RMB common shares(A-stock) and domestically listed foreign listed shares (B-stock) were listed in Shenzhen StockExchange 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 August 17, 2022.
(2) Scope of financial statement
(i) There are 9 subsidiaries included in the consolidate financial statement, including:
| Subsidiary | Share holding ratio% | Note |
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. (“Zhongshan Electric Power”) | 80.00 | |
| Shenzhen Shennandian Turbine Engineering Technology Co., Ltd (“Engineering Company”) | 100.00 | |
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd. (“Environment Protection Company”) | 100.00 | |
| Shenzhen Server Petrochemical Supplying Co., Ltd (“Shenzhen Server”) | 50.00 | |
| Shenzhen New Power Industrial Co., Ltd. (“New Power”) | 100.00 | |
| Shen Nan Energy (Singapore) Co., Ltd. (“Singapore Company”) | 100.00 | |
| Hong Kong Syndisome Co., Ltd. (“Syndisome”) | 100.00 | |
| Zhongshan Shen Nan Dian Storage Co., Ltd (“Shen Storage”) | 80.00 |
Scope of the consolidate financial statement and its changes found more in the VI. Change of Consolidate Scope andVII. Equity in other entity carry in the Note
II. Preparation basis of Financial statement
(1) Preparation basis
The Company’s financial statements have been prepared based on the going concern and theactual transactions and events. In accordance with the Accounting Standards for BusinessEnterprises- Basic Norms and every specific accounting rules, the application guidelines of theAccounting Standards for Business Enterprises, interpretations and other related rules of theAccounting Standards for Business Enterprises (hereinafter referred to as “ASBEs”), and thedisclosure requirements of the “Regulation on the Preparation of Information Disclosures ofCompanies Issuing Public Shares, No. 15- General Requirements for Financial Reports” of ChinaSecurities Regulatory Commission.
(2)Going concern
The Company is capable of going concern for 12 months from the end of the reporting period, andthere are no major 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 ofpower and heat, power plant construction, fuel trading, engineering consulting and sludge drying.According to the actual production and operation characteristics, the Company and its subsidiariesestablish certain specific accounting policies and accounting estimates in respect of theirtransactions and matters such as sales revenue recognition pursuant to relevant businessaccounting principles. Details are set out in (24) Revenue under Note III.
(1) Statement on observation of Accounting Standard for Business EnterprisesThe Financial Statements are up to requirements of Accounting Standards for Business Enterprises,and reflect the financial status, operation outcomes, changes of owners(shareholders) equity andcash flows of the Company in reporting period in truthfulness and completeness.
(2) Accounting period
A fiscal year from January 1 to December 31 of the Gregorian calendar.
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) (“Zhuhai Hengqin”) | 99.96 |
(3)Operating cycle
The Company takes 12 months of a year as the normal operating cycle, and takes the operatingcycle as the standard for the liquidity division of assets and liabilities.
(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 controlEnterprise combination under the same control: The assets and liabilities obtained by thecombining party in enterprise combination are measured at the book value of the consolidatedfinancial statements of the ultimate controlling party in accordance with the assets and liabilitiesof the combined party on the date of combination. The difference between the carrying amount ofthe net assets obtained and the carrying amount of the consideration paid for the combination (orthe 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 toabsorb the difference, any excess shall be adjusted against retained earnings.
Enterprise combinations not under the same control: The purchaser's assets paid and liabilitiesincurred or assumed on the date of purchase as a consideration of enterprise combination aremeasured at fair value, and the difference between the fair value and its book value is included inthe current profit and loss. Where the cost of a business combination exceeds the acquirer’sinterest in the fair value of the acquiree’s identifiable net assets, the difference is recognized asgoodwill; 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 afterdouble-check.
The directly relevant fees incurred in the merger of enterprises shall be reckon into the currentgains/losses when incurred; the transaction costs of issuing equity securities or debt security forthe purpose of enterprise combination should be reckon into the initial recognition of equitysecurity or debt security.
(6)Preparation methods for consolidated statement
6.1.Consolidate scope
Scope of the consolidate financial statement is determined on a control basis, including theCompany and all subsidiaries.
6.2.Consolidate procedures
Based on the financial statements of itself and its subsidiaries, the Company compiles theconsolidated financial statements in line with other relevant information. The Company compilesconsolidated financial statements, considers the entire enterprise group as an accounting entity,and reflects the overall financial position, operating results and cash flow of the enterprise groupin accordance with the relevant accounting standards' recognition, measurement and presentationrequirements and in accordance with unified accounting policies.
The accounting policies and accounting periods adopted by all subsidiaries included in theconsolidation scope of the consolidated financial statements are consistent with the Company. Ifthe accounting policies and accounting periods adopted by the subsidiaries are inconsistent withthe Company, when preparing the consolidated financial statements, make necessary adjustmentsaccording to the accounting policies and accounting periods of the Company. For a subsidiaryacquired through a business combination not under the same control, its financial statements areadjusted based on the fair value of the identifiable net assets at the acquisition date. For asubsidiary acquired through a business combination under the same control, its financialstatements are adjusted based on the book value of its assets and liabilities (including the goodwillformed by the ultimate controlling party's acquisition of the subsidiary) in the ultimate controllingparty's financial statements.
The subsidiary's owner's equity, current net profit or loss and the share of current comprehensiveincome belonging to minority shareholders are separately listed under the owner's equity item inthe consolidated balance sheet, under the net profit item in the consolidated income statement andunder the total comprehensive income item. If the current loss shared by the minority shareholdersof a subsidiary exceeds the minority shareholder' share in the owner's equity of the subsidiary atthe beginning of the period, the balance shall offset against the minority shareholders' equity.
(1) Increase subsidiaries or businesses
During the reporting period, if a subsidiary or business is added due to a business combinationunder the same control, adjust the opening balance of the consolidated balance sheet; incorporatethe income, expenses, and profits of the subsidiary or business combination from the beginning ofthe current period to the end of the reporting period into the consolidated income statement;incorporate the cash flows of the subsidiary or business combination from the beginning of thecurrent period to the end of the reporting period into the consolidated cash flow statement, andadjust the relevant items of the comparative statement as if the consolidated reporting entity hadbeen 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, all parties participating in the combination are deemed to have adjusted in theircurrent state when the ultimate controlling party commenced control. The equity investment heldbefore the control of the combined party is obtained, the relevant profit or loss and othercomprehensive income that have been confirmed between the date of acquisition of the originalequity and the date on which the combining party and the combined party are under the samecontrol until the combining date, as well as other changes in net assets respectively write down theretained earnings at the beginning of period or the current profits and losses in the comparativestatements.
During the reporting period, if a subsidiary or business is added due to a business combination notunder the same control, the opening balance of the consolidated balance sheet period will not beadjusted; the income, expenses, and profits of the subsidiary or business from the acquisition dateto the end of the reporting period will be included in the consolidated income statement; the cashflows of the subsidiary or business from the acquisition date to the end of the reporting period areincluded in the consolidated statement of cash flow.
For reasons such as additional investments that can control an investee not under the same control,the Company remeasures the equity of the acquiree held before the purchase date according to thefair value of the equity on the purchase date, and the balance between the fair value and its bookvalue is included in the current investment income. If the equity of the acquiree held before thepurchase date involves other comprehensive income under the equity method and other changes inowner's equity other than net profit or loss, other comprehensive income and profit 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 othercomprehensive income arising from the re-measurement of the net liabilities or changes in netassets of the defined benefit plan of the investee.
(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 and profits of the subsidiary or business from the beginning of the period to the disposaldate are included in the consolidated income statement, while the cash flow of the subsidiary orthe business from the beginning of the period to the disposal date is included in the consolidatedstatement of cash flow.
For control rights loss in original subsidiary for partial equity investment disposal or other reasons,the remained equity should re-measured based on the fair value at date of control losses. Thedifference between the net assets of original subsidiary share by proportion held that sustainable
calculated since purchased date (or combination date) and sum of consideration obtained by equitydisposal and fair value of remain equity, reckoned into the current investment income of controlrights loss. Other comprehensive income related to the original subsidiary's equity investment orother 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, exceptfor other comprehensive income arising from the remeasurement of the net liabilities or changes innet assets of the defined benefit plan of the investee.
If other investors’ capital increases in the subsidiary results in a decline in the Company'sshareholding ratio and thus loss of control power, accounting shall be conducted in accordancewith the above principles.
① Dispose subsidiary step-by-step
When the Company disposes of equity investment in a subsidiary by a stage-up approach withseveral transactions until the control over the subsidiary is lost, these several transactions relatedto the disposal of equity investment in a subsidiary are accounted for as transactions in a basketwhen the terms, conditions and economic impacts of these several transactions meet the followingone or more conditions:
i. these transactions are entered into at the same time or after considering their impacts on eachother;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 whenconsidered with other transactions.
When several transactions related to the disposal of equity investment in a subsidiary until thecontrol over the subsidiary is lost fall within transactions in a basket, each of which is accountedfor as disposal of a subsidiary with a transaction until the control over a subsidiary is lost; however,the different between the amount of disposal prior to the loss of control and the net assets of asubsidiary attributable to the disposal investment shall be recognized as other comprehensiveincome in consolidated financial statements and transferred to profit or loss for the period at thetime when the control is lost.
If the transactions that dispose of the equity investment in the subsidiary until the loss of controldo not belong to the package transaction, before the loss of control, the relevant policies for partialdisposal of the equity investment in the subsidiary shall be accounted for without losing control.When the control right is lost, the accounting treatment shall be carried out according to thegeneral 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 thepurchase of minority shares and the net assets share calculated continuously by the subsidiaryfrom the date of purchase (or merger date) in accordance with the calculation of the newlyincreased shareholding ratio, adjust the equity premium in the capital reserve in the consolidatedbalance sheet, if the equity premium in the capital reserve is insufficient to offset, adjust theretained earnings.
(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-termequity investment in a subsidiary without losing control and the net assets share calculatedcontinuously by the subsidiary from the date of purchase or merger corresponding to the disposalof the long-term equity investment, adjust the equity premium in the capital reserve in theconsolidated balance sheet, if the equity premium in the capital reserve is insufficient to offset,adjust the retained earnings.
(7) Classification of joint venture 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 assetsrelated to the arrangement 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 in accordance with the provisions of the relevant accounting standards for accountingtreatment:
(1) Recognize the assets held solely by the Company, and recognize assets held jointly by theCompany in appropriation to the share of the Company;
(2) Recognize the obligations assumed solely by the Company, and recognize obligations assumedjointly by the Company 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 (13) Long-term equityinvestment under Note III.
(8) Determination criteria of cash and cash equivalent
While preparing the cash flow statement, the stock cash and savings available for payment at anytime are recognized as cash. The investments meets the follow four conditions at the same time are
recognized as cash equivalent, that is short-term (normally fall due within three months from thedate of acquisition) and highly liquid investments held the Group which are readily convertibleinto known amounts of cash and which are subject to insignificant risk of value change.
(9) Foreign currency business and foreign currency statement translation
9.1.Foreign currency business
Foreign currency business uses the spot exchange rate on the transaction date as the conversionrate to convert foreign currency amounts into RMB for accounting.
The balance of foreign currency monetary items at the balance sheet date is converted at the spotexchange rate on the balance sheet date, the resulting exchange difference is included in currentprofit and loss, except that the exchange difference arising from foreign currency specialborrowings related to the acquisition or construction of assets eligible for capitalization is disposedwith the principle of borrowing expenses capitalization.
9.2. Foreign currency statement translation
Assets and liabilities in the balance sheet are converted at the spot exchange rate on the balancesheet date; the owners' equity items are converted at the spot exchange rate at the time ofoccurrence, except for the "undistributed profit" item. The income and expense items in theincome statement are converted at the spot exchange rate on the transaction date.
When disposing of an overseas operation, the translation difference in the foreign currencyfinancial statements related to the overseas operation is transferred from the owner's equity item tothe disposal of current profit or loss.
(10) Financial instrument
Financial instrument consist of financial assets, financial liability and equity instrument.
10.1.Classification of financial instrument
Based on the Company's business model for managing financial assets and the contractual cashflow characteristics of financial assets, financial assets are classified as the financial assetsmeasured at amortized cost, the financial assets (debt instruments) measured at fair value andwhose changes are included in other comprehensive income and the financial assets measured atfair value and whose changes are included in current profit and loss at initial recognition.
Business model to collect the contractual cash flow, and the contractual cash flow is only thepayment of the principal and the interest based on the outstanding principal amount, is classifiedas a financial asset measured at amortized cost; business model to collect the contractual cash flow
and sell the financial asset, and the contractual cash flow is only the payment of principal and theinterest based on the outstanding principal amount, is classified as a financial asset measured atfair value and whose changes are included in other comprehensive income (debt instruments);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 initialrecognition whether to designate it as a financial asset (equity instrument) measured at fair valueand whose changes are included in other comprehensive income.
At the time of initial recognition, financial liabilities are classified into financial liabilities that aremeasured at fair value and whose changes are included in the current profit and loss and financialliabilities that are measured at amortized cost.
A financial liability that meets one of the following conditions can be designated as a financialliability measured at fair value and whose changes are included in current profit and loss at initialmeasurement:
1) This designation can eliminate or significantly reduce accounting mismatches.
2) In accordance with the corporate risk management or investment strategy stated in formalwritten documents, make management and performance evaluation to financial liability portfoliosor financial assets and financial liability portfolios based on fair value, and report to the keymanagement personnel within the enterprise based on this.
3) The financial liability includes embedded derivatives that need to be split separately.
According to the above conditions, the financial liabilities designated by the Company mainlyinclude: (Specific description of the designated situation)
10.2 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, otherreceivables, long-term receivables, debt investment, etc., which are initially measured at fair value,and related transaction costs are included in the initially recognized amount; accounts receivableexcluding significant financing components and accounts receivable with financing componentsnot exceeding one year that the Company decides not to consider are initially measured at thecontract transaction price.
The interest calculated by using the effective interest method during the holding period is includedin the current profit and loss.
When taking back or disposing, the difference between the cost obtained and the book value of thefinancial asset is included in the current profit and loss.
(2) Financial assets (debt instrument) measured at fair value and whose changes are reckoned intoother comprehensive income
The financial assets (debt instrument) measured at fair value and whose changes are reckoned intoother comprehensive income consist of receivable financing and other debt investment andinitially measured at fair value, relevant transaction fees are included in initial recognized amount.The financial assets are subsequently measured at fair value, and the fair value changes arereckoned into other comprehensive income except for the interest, impairment loss or gain andexchange gain or loss calculated by actual interest rate method.
Upon termination of the recognition, the accumulated gains or losses previously included in othercomprehensive income shall be transferred out and reckoned into current profit and loss.
(3) Financial assets (equity instrument) measured at fair value and whose changes are reckonedinto other comprehensive income
The financial assets (equity instrument) measured at fair value and whose changes are reckonedinto other comprehensive income consist of the equity instrument investment etc. and initiallymeasured at fair value, relevant transaction fees are included in initial recognized amount. Thefinancial assets are subsequently measured at fair value, and the fair value changes are reckonedinto other comprehensive income. The dividend obtained should reckoned into currentgains/losses.
Upon termination of the recognition, the accumulated gains or losses previously included in othercomprehensive income shall be transferred out and reckoned into retained earnings.
(4) Financial assets measured at fair value and whose changes are reckoned into currentgains/lossesThe financial assets measured at fair value and whose changes are reckoned into currentgains/losses consist of trading financial assets, derivative financial assets and other non-currentfinancial assets etc. and initially measured at fair value, relevant transaction fees are included incurrent gains/losses. The financial assets are subsequently measured at fair value, and the fairvalue changes are reckoned into current gains/losses.
(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 currentgains/losses consist of trading financial liability and derivative financial liability etc. and initiallymeasured at fair value, relevant transaction fees are included in current gains/losses. The financialliabilities are subsequently measured at fair value, and the fair value changes are reckoned intocurrent gains/losses.
Upon termination of the recognition, the difference between its book value and the considerationpaid is included in the current gains/losses.
(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 accountpayable, and initially measured at fair value, relevant transaction fees are included in initialrecognized amount.
The interests calculated by effective interest rate method during the holding period is reckonedinto current gains/losses.
Upon termination of the recognition, the difference between consideration paid and the book valueof financial liability is reckoned into current gains/losses.
10.3. Recognition basis and measurement method for transfer of financial assetsIn the event of financial asset transfer, the Company shall assess the degree of risk and reward ofretaining the ownership of the financial asset and deal with the following circumstancesrespectively:
(1) Where almost all risks and rewards on the ownership of a financial asset are transferred, therecognition of the financial asset shall be terminated, and the rights and obligations generated orretained in the transfer shall be separately recognized as assets or liabilities.
(2) Where almost all risks and rewards on the ownership of a financial asset are retained, thefinancial asset shall continue to be recognized.
(3) Where virtually all risks and rewards on the ownership of a financial asset are neithertransferred nor retained (that is, other conditions except for (1) and (2) of this Article), dependingon whether it retains control of the financial asset, deal with the following circumstances
respectively:
1) Where the control of such financial asset is not retained, the recognition of the financial asset isterminated, and the rights and obligations generated or reserved in the transfer are identified as anasset or liability.
2) Where the control of such financial asset is retained, the relevant financial assets shall continueto be recognized according to the extent of its continued involvement in the transferred financialassets, and the relevant liabilities shall be recognized accordingly. The extent of continuedinvolvement in the transferred financial assets refers to the extent of the risk or reward of changesin the value of the transferred financial asset assumed by the Company.
When judging whether the financial asset transfer meets the termination of recognition of the saidfinancial asset, adopt the principle of substance over form. The company divides the financialasset transfer into overall transfer and partial transfer of financial asset.
(1) Where the overall transfer of financial assets meets the conditions for recognizing thetermination, the difference between the following two amounts shall be recorded into the profitsand losses of the current period:
1) The carrying amount of the transferred financial asset on the date of the termination ofrecognition.
2) The sum of the consideration received by the transfer of financial assets and the amountcorresponding to the portion of which the recognition is terminated of the accumulated amount ofchanges in fair value originally included in other comprehensive income (The financial assetsinvolved in transfer are measured at fair value and their changes are included in othercomprehensive income).
(2) Where the financial asset is partially transferred and the transferred portion overall meets theconditions for recognizing the termination, the carrying amount of overall financial asset beforetransfer shall be apportioned between the portion to be terminated from recognition and theportion continued to be recognized (In such circumstances, the retained service assets shall beregarded as a portion of the financial assets continuing to be recognized) in accordance with theirrelative fair value on the transfer date, and the difference between the following two amounts shallbe recorded into the profits and losses of current period.
1) The carrying amount of the portion on the date of the termination of recognition.
2) The sum of the consideration received from the portion of which the recognition is terminatedand the amount corresponding to the portion of which the recognition is terminated of theaccumulated amount of changes in fair value originally and directly included in othercomprehensive income (The financial assets involved in transfer are measured at fair value andtheir changes are included in other comprehensive income).
If the transfer of financial assets does not meet the conditions for derecognition, the financialassets are continuously recognized, and the consideration received is recognized as a financialliability.
10.4. Termination recognition of financial liability
Where the current obligation of a financial liability have been discharged in whole or in part, therecognition of the financial liability or part thereof shall be terminated; If the Company enteredinto an agreement with its creditors to replace its existing financial liabilities with the newfinancial liability, and the contract terms of the new financial liabilities and the existing financialliabilities are substantially different, the existing financial liabilities shall be terminated forrecognition and the new ones shall be recognized at the same time.
As for substantive changes made to the contract terms (in whole or in part) of the existingfinancial liabilities, the existing financial liabilities (or part of it) will be terminated for recognition,and the financial liabilities after term revision will be recognized as a new financial liability.
When a financial liability is derecognized in whole or in part, the difference between the bookvalue of the financial liability derecognized and the consideration paid (including the non-cashassets transferred out or the new financial liabilities assumed) is included in the current profit andloss.
If the Company repurchases part of the financial liabilities, the entire book value of the financialliabilities will be allocated on the repurchase date according to the relative fair value of thecontinuing recognition part and the derecognition part. The difference between the book valueallocated to the derecognition part and the consideration paid (including the transferred non-cashassets or assumed new financial liabilities) is included in the current profit and loss.
10.5. Methods for determining the fair value of financial assets and financial liabilitiesFor financial instruments that have an active market, their fair values are determined by usingquotes in the active market. For financial instruments that do not have an active market, valuationtechniques are used to determine their fair values. In the valuation, the Company adopts valuation
techniques that are applicable under the current circumstances and have sufficient available dataand other information support, chooses the input values consistent with the characteristics ofassets or liabilities considered by market participants in the transactions of related assets orliabilities, and prioritizes the relevant observable input values. The Company uses unobservableinput values only if the relevant observable input values cannot be obtained or are not practicable.
10.6. Test methods and accounting treatment methods for impairment of financial assetsThe Company considers all reasonable and evidence-based information, includingforward-looking information, and estimates the expected credit losses of financial assets measuredat amortized cost by the single or combined way and financial assets (debt instruments) measuredat fair value and whose changes are included in other comprehensive income. The measurement ofexpected credit losses depends on whether a significant increase in credit risk has occurred sincethe initial recognition of a financial asset.
If the credit risk of the financial instrument has increased significantly since initial recognition, theCompany shall measure its loss provision at an amount equivalent to the expected credit lossthroughout the life of the financial instrument. If the credit risk of the financial instrument has notincreased significantly since initial recognition, the Company shall measure its loss provision at anamount equivalent to the expected credit loss of the financial instrument in the next 12 months.The increased or reversed amount of the loss provision thus formed shall be included in thecurrent profit and loss as impairment losses or gains.
Usually, the Company considers that the credit risk of the financial instrument has increasedsignificantly when it is overdue for more than 30 days, unless there is conclusive evidence that thecredit risk of the financial instrument has not increased significantly after initial recognition.
If the credit risk of a financial instrument at the balance sheet date is low, the Company willconsider that the credit risk of the financial instrument has not increased significantly since initialrecognition.
Regarding the note receivable, account receivables and receivables financing, whether or not itcontains a significant financing component, the Company always measures its loss provisions atan amount equivalent to the expected credit loss throughout the duration.
For lease receivables and long-term receivables formed by the company through sales of goods orrendering of services, the Company always chooses to measure the loss reserves at an amountequivalent to expected credit losses during the entire duration.
For notes receivable, accounts receivable, other receivables, financing of accounts receivable andlong-term receivables with objective evidence showing that there is impairment and is applicableto individual assessment, perform separate impairment tests, confirm expected credit losses, andmake provisions for impairment; for notes receivable, accounts receivable, other receivables, andfinancing of accounts receivable for which there is no objective basis for impairment, or whenthere is insufficient evidence to assess expected credit losses at a reasonable cost at the level ofindividual instruments, the Company refers to historical credit loss experience, combines withcurrent conditions and judgments on future economic conditions, and divides the notes receivable,accounts receivable, other receivables, financing of accounts receivable and long-term receivablesinto several portfolios based on the characteristics of credit risk, and calculates the expected creditloss on the basis of the portfolio. Details as follows:
(1) Note receivables
| Name of the combination | Method of measuring credit loss |
| Bank acceptance bill of state-owned banks | For notes receivable classified as bank acceptance portfolio, the management appraises that such payments have low credit risks and low expected credit loss rate, and should make no provision for impairment. |
(2) Account receivable
| Name of the combination | Method of measuring credit loss |
| Electricity transaction receivable | Regarding accounts receivable divided into power transactions, engineering operation and maintenance, and environmental protection services, referring to historical credit loss experience, and combined with current conditions and forecasts of future economic conditions, the management evaluates that such payments have low credit risk and low expected credit loss rate, so no impairment provision is made; unless there is evidence that the credit risk of a certain receivable is relatively large. |
| Receivable for engineering operation and maintenance | |
| Environmental protection labor receivables |
(3)Other account receivable
| Name of the combination | Method of measuring credit loss |
| Combination of the export tax rebate, VAT rebate upon levy | The company classifies the payments, tax refunds receivable, and collection and withholding payments from subsidiaries within the scope of accounts receivable consolidation that have no significant recovery risks into other portfolios, and no bad debt provision is made. |
| Combination of the deposit margin reserve | |
| Other vary receivable and temporary payment in addition to the above combination |
(4) Receivable financing
| Name of the combination | Method of measuring credit loss |
Bank acceptance bill of the bank withlower credit risk
| Bank acceptance bill of the bank with lower credit risk | With reference to historical credit loss experience, combined with current conditions and forecasts of future economic conditions, the expected credit loss is calculated through the default risk exposure and the expected credit loss rate of the entire duration. |
| Trade acceptance |
(11) Inventory
11.1. Categories of inventory
Inventory consists of fuels and raw materials etc.
11.2. Valuation method of delivered inventory
The inventories are valued on a weighted average basis at the time of delivery.
11.3.Basis for determining the net realizable value of different types of inventoriesFor inventory of products that are directly used for sale, such as finished products, inventoryproducts, and materials for sale, in the normal production and operation process, the amount aftersubtracting the estimated selling expenses and relevant taxes from the estimated selling price shallbe used to determine the net realizable value. For inventory of materials that need to be processed,in the normal production and operation process, the amount after subtracting the estimated cost,estimated sales expense, and related taxes at the time of completion from the estimated sellingprice of the finished product shall be used to determine the net realizable value. The net realizablevalue of the inventory held for the execution of the sales contract or labor service contract iscalculated on the basis of the contract price. If the quantity of the inventory held is more than thequantity ordered by the sales contract, the net realizable value of the excess inventory is calculatedbased on the general sales price.
At the end of the period, provision for inventory depreciation is made based on a single inventoryitem; but for inventory with a large quantity and low unit price, provision for inventorydepreciation is made based on the inventory category. For inventories that are related to theproduct series produced and sold in the same region, have the same or similar end-use or purpose,and are difficult to measure separately from other items, the inventory depreciation reserve shallbe accrued in a consolidated manner.
11.4. Inventory system
Perpetual inventory system required
11.5. Amortization method of low-value consumables and packaging
(1) Low-value consumables-one pass method
(2) Packaging- one pass method
(12) Contractual assets
If the Company has transferred goods to customers and has the right to receive consideration, andthe right depends on factors other than the time lapses, it is recognized as contractual assets. TheCompany's unconditional (that is, only depending on the time lapses) right to collect considerationfrom customers are separately listed as receivables.
The Company's determination method and accounting treatment method for the expected creditloss of contract assets are detailed in Note III/(10) 6. Impairment of financial instruments.
(13) Long-term equity investment
13.1 Criteria judgement for joint control and significant influence
Joint control is the Company’s contractually agreed sharing of control over an arrangement, whichrelevant activities of such arrangement must be decided by unanimously agreement from partieswho share control. Where the Company and other joint ventures exercise joint control over theinvestee and enjoy the rights to the net assets of the investee, the investee is a joint venture of theCompany.
Significant influence is the right of the Company to participate in the financial and operationdecision-making of an enterprise, but not to control or jointly control the formulation of suchpolicies with other parties. Where the Company is able to exert significant influence on theinvestee, the investee shall be a joint venture of the Company.
13.2 Determination of initial investment cost
(1) Long-term equity investment resulting from enterprise combination
Enterprise combination under the same control: If the Company pays cash, transfers non-cashassets or assumes debt, and issues equity securities as the consideration for the merger, the shareof the book value of the owner's equity of the combined party in the consolidated financialstatements of the ultimate controlling party on the combining date shall be used as the initialinvestment cost of long-term equity investment. If it is possible to control the investee under thesame control due to additional investments, etc., the initial investment cost of long-term equityinvestment 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 themerger date. The difference between the initial investment cost of the long-term equity investment
on the merger date and the sum of the book value of the long-term equity investment before themerger plus the book value of the new share payment consideration obtained on the merger dateadjusts the equity premium. If the equity premium is insufficient to be offset, the retained earningsshall be offset.
Business combination not under the same control: The Company uses the combination costdetermined on the purchase date as the initial investment cost of the long-term equity investment.If it is possible to exercise control over an investee that is not under the same control due toadditional investments, etc., the sum of the book value of the original equity investment plus thenewly increased investment cost is used as the initial investment cost calculated by the costmethod.
(2) Long-term equity investment obtained through other methods
For a long-term equity investment obtained by paying cash, the actually paid purchase price istaken as the initial investment cost.
For a long-term equity investment obtained by issuing equity securities, the fair value of the issuedequity securities is taken as the initial investment cost.
On the premise that the non-monetary asset exchange has commercial substance and that the fairvalue of the assets swapped in or out can be reliably measured, the initial investment cost of thelong-term equity investment swapped in by non-monetary assets exchange is determined by thefair value of assets swapped out and the relevant payable taxes and fees, unless there is conclusiveevidence that the fair value of the assets swapped in is more reliable; for non-monetary assetsexchange that do not meet the above preconditions, the book value of the assets swapped out andthe relevant taxes and fees payable are used as the initial investment cost of the long-term equityinvestment swapped in.
For a long-term equity investment obtained through debt restructuring, its entry value isdetermined based on the fair value of the abandoned creditor's rights and other costs such as taxesdirectly attributable to the asset, and the difference between the fair value of the abandonedcreditor's rights and the book value is included in the current profit and loss.
13.3 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 actualprices or the announced but yet undistributed cash dividend or profit in consideration valuation,
the current investment return is recognized by the announced cash dividend or profit by theinvested units.
(2) Long-term equity investment measured at equity
The long-term equity investment in associated enterprise and joint ventures shall be measured atcost. If the initial investment cost is greater than than the share of fair value of the invested entity’sidentifiable net assets, the initial investment cost of the long-term equity investment will not beadjusted; if the initial investment cost is less than than the share of fair value of the investedentity’s identifiable net assets, the difference shall reckoned in current gains/losses.
The investment gain and other comprehensive income shall be recognized based on theCompany’s share of the net profits or losses and other comprehensive income made by theinvestee, respectively. Meanwhile, the carrying amount of long-term equity investment shall beadjusted. The carrying amount of long-term equity investment shall be reduced based on theGroup’s share of profit or cash dividend distributed by the investee. In respect of the othermovement of net profit or loss, other comprehensive income and profit distribution of investee, thecarrying value 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 fairvalues of the investee’s individual separately identifiable assets at the time of acquisition, aftermaking appropriate adjustments thereto during the accounting period and according to theaccounting policy of the Company. During the period of holding the investment, the investeeprepares the consolidated financial statements based on the net profit, other comprehensiveincome, 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 shallproceed in the following order. Firstly, write off the book value of the long-term equity investment.Secondly, if the book value of the long-term equity investment is not sufficient to offset, theinvestment loss shall continue to be recognized within the limit of the book value of long-termequity that substantially constitutes a net investment in the investee, and offset the book value oflong-term receivables. Finally, after the above-mentioned treatment, if the enterprise still bearsadditional obligations as stipulated in the investment contract or agreement, the accrual liabilitiesare recognized 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 purchase price is included in the current profit and loss.
When disposing of a long-term equity investment accounted for by using the equity method, usethe same basis as the investee directly disposes of related assets or liabilities, and make accountingtreatment to the portion that was originally included in other comprehensive income according tothe corresponding proportion. The owner's equity recognized as a result of changes in otherowner's equity of the investee other than net profit or loss, other comprehensive income, and profitdistribution is carried forward to the current profit and loss on a pro rata basis, except for othercomprehensive 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 theequity investment, etc., the remaining equity after disposal shall be calculated in accordance withthe financial instrument recognition and measurement standards, and the difference between thefair value and the book value on the day of losing the joint control or significant influence isincluded in the current profit and loss. Other comprehensive income of the original equityinvestment recognized due to using the equity method for accounting shall adopt the accountingtreatment 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 aresult of changes in the owner's equity other than net profit or loss, other comprehensive incomeand profit distribution of the investee is transferred to current profit and loss when terminating theadoption of equity method for accounting.
The control over the investee is lost due to the disposal of part of the equity investment and thecapital increase in the subsidiary by other investors resulting in a decline in the shareholding ratioof the Company, in preparing separate financial statements, the remaining equity interest whichcan apply common control or impose significant influence over the investee shall be accountedfor using equity method. Such remaining equity interest shall be treated as accounting for usingequity method since it is obtained and adjustment was made accordingly. For remaining equityinterest 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 difference between its fair value and carrying amount as at the date of losing control shall beincluded in profit or loss for the current period.
The disposed equity is obtained through business combination due to additional investment andother reasons, when preparing individual financial statements, if the remaining equity afterdisposal uses cost method or equity method for accounting, the equity investments held before theacquisition date shall be carried forward in proportion to other comprehensive income and other
owner's equity recognized through equity method accounting; For the remaining equity interestafter disposal accounted for using the recognition and measurement standard of financialinstruments, other comprehensive income and other owners’ equity shall be fully transferred.
(14) Investment real estate
Investment real estate is defined as the real estate with the purpose to earn rent or capitalappreciation or both, including the rented land use rights and the land use rights which are heldand prepared for transfer after appreciation, the rented buildings. (Including buildings for leaseafter self-construction or development activities completed and buildings under construction ordevelopment for lease in the future)
Investment real estate of the Company are measured at cost model. The Investment real estate-rental buildings measured at cost model has the same depreciation policy as fixed assets, the landuse right for lease is exercise the amortization policy as intangible assets.
(15) Fixed assets
15.1 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 ofservice life. Fixed assets are recognized 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.
15.2 Depreciation method
The depreciation of fixed assets is calculated and accrued by the straight-line depreciationmethod, and the depreciation rate is determined according to the fixed asset category, estimateduseful life and estimated net residual value rate. If the service life of each component of the fixedasset is different or the economic benefits are provided to the enterprise in different ways, differentdepreciation rates or depreciation methods shall be selected and depreciation shall be calculatedseparately.Depreciation method, depreciation period, residuals rate and annual depreciation rate for all kindsof fixed assets are as follows:
| Category | Depreciation method | Depreciation period (Year) | Residuals rate(%) | Annual depreciation rate (%) |
Category
| Category | Depreciation method | Depreciation period (Year) | Residuals rate(%) | Annual depreciation rate (%) |
| Houses and buildings | Straight-line | 20 years | 10 | 4.5 |
| Equipment-fuel machinery sets(Note) | The work quantity method | 10 | ||
| Equipment (fuel machinery sets excluded) | Straight-line | 15-20 years | 10 | 4.5-6 |
| Transportation tools | Straight-line | 5 years | 10 | 18 |
| Other | Straight-line | 5 years | 10 | 18 |
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# | 989.98 |
| Generating unit 3# | 862.43 |
(16) Construction in process
Construction in progress take the necessary expenditures incurred before the construction of theasset reaching the expected usable state as the entry value of the fixed assets. If the constructedfixed assets have reached the expected usable state of the project, but the final accounts forcompletion have not yet been processed, from the date of reaching the expected usable state, theconstructed fixed assets will be transferred to the fixed assets at the estimated value based on theproject budget, cost, or actual project cost, and accrue the depreciation of fixed assets according tothe Company's fixed asset depreciation policy, and adjust the original temporary estimated valueaccording to the actual cost after completing the final accounts, but not adjust the original accrueddepreciation amount.
(17) Borrowing expenses
17.1 Recognition principle of the capitalization of borrowing expenses
Borrowing expenses include interest, amortization of discounts or premiums related to borrowings,ancillary costs incurred in connection with the arrangement of borrowings, and exchange
differences arising from foreign currency borrowings.
If the borrowing expenses incurred by the company can be directly attributable to the acquisition,construction or production of assets that meet the capitalization conditions, they shall becapitalized and included in the cost of the relevant assets; other borrowing expenses shall berecognized as expenses based on the amount incurred when incurred and included in current profitand loss.
Assets qualified for capitalization, refers to the fixed assets, investment real estate, inventory andother assets that require a considerable period of time for purchase, construction or productionactivities to reach the intended use or sale status.
The capitalization of borrowing expenses starts when the following conditions are met at the sametime:
(1) Asset expenditures have occurred, including expenditures in the form of paying cash,transferring non-cash assets, or assuming interest-bearing debts for the acquisition, construction orproduction of assets that meet the conditions for capitalization;
(2) borrowing expenses have incurred;
(3) The acquisition, construction or production activities necessary for the assets to reach theintended usable or saleable state have begun.
17.2 Period of capitalization of borrowing expenses
The period of capitalization refers to the period from the point when the capitalization of theborrowing expenses starts to the point when the capitalization is stopped. The period during whichthe capitalization of the borrowing expenses is suspended is not included.
When the acquisition, construction or production of assets that meet the capitalization conditionsreaches the intended usable or saleable state, the capitalization of borrowing expenses shall cease.
When part of projects in the acquisition, construction or production of assets that meet thecapitalization conditions are completed separately and can be used independently, thecapitalization of the borrowing expenses of the part of the assets shall be stopped.
If each part of the assets purchased, constructed or produced is completed separately, but cannotbe used or sold until the entirety is completed, the capitalization of borrowing expenses shall bestopped when the entire asset is completed.
17.3The period of suspension of capitalization
If an abnormal interruption occurs during the acquisition, construction or production of an assetthat meets the capitalization conditions, and the interruption lasts for more than 3 months, thecapitalization of borrowing expenses shall be suspended; if the interruption is the necessaryprocedure for the acquisition, construction or production of assets that meet the capitalizationconditions to reach the intended usable state or saleable state, the borrowing expenses shallcontinue to be capitalized. The borrowing expenses incurred during the interruption period shall berecognized as the current profit and loss, and the borrowing expenses shall continue to becapitalized until the acquisition, construction or production of the asset restarts.
17.4 Calculation method of capitalization rate and capitalization amount of borrowingexpenses
For special loans borrowed for the acquisition, construction or production of assets that meet thecapitalization conditions, the amount after subtracting the interest income obtained by depositingthe unused borrowing funds in the bank or the investment income obtained from temporaryinvestment from the actual borrowing expenses incurred in the current period of the special loansis used to determine the capitalized amount of borrowing expenses.
For general borrowings used for the acquisition, construction or production of assets that meet thecapitalization conditions, the amount of borrowing expenses that should be capitalized for generalborrowings is calculated and determined based on the weighted average of the asset expendituresof the accumulated asset expenditure exceeding the part of the special borrowings multiplied bythe capitalization rate of the general borrowings used. The capitalization rate is calculated anddetermined based on the weighted average interest rate of general borrowings.
(18) Intangible assets
18.1 Valuation methods of intangible assets
(1) When the company obtains intangible assets, they shall be initially measured at cost;The cost of outsourcing intangible assets includes the purchase price, relevant taxes, and otherexpenditures incurred to make the assets reach the intended purpose. If the purchase price ofintangible assets have a delay in payment beyond normal credit conditions and is of financingnature, the cost of intangible assets is determined on the basis of the current value of the purchaseprice.
For intangible assets used by the debtor to repay the debt through debt restructuring, the entry
value is determined by the fair value of the waived creditor’s rights and other costs that can bedirectly attributable to the tax incurred to make the asset reach its intended use, and the differencebetween the fair value and the book value of the waived creditor's rights is included in the currentprofit and loss.
On the premise that the non-monetary asset exchange has commercial substance and the fair valueof the swap-in assets and the swap-out assets can be reliably measured, the entry value of theswap-in intangible assets through non-monetary assets exchange is determined on the basis of thefair value of the swap-out assets, unless there is conclusive evidence that the fair value of theswap-in assets is more reliable; for non-monetary asset exchanges that do not meet the abovepremises, the book value of the swap-out assets and the relevant taxes and fees payable shall beused as the cost of the swap-in intangible assets, but not recognize the profit and loss.
(2) Follow-up measurement
Analyze and judge the service life of intangible assets when acquiring them.Intangible assets with a limited service life are amortized on a straight-line basis within the periodof economic benefits brought to the enterprise; or the intangible assets shall be regarded as with anuncertain service life if the period of economic benefits brought by intangible assets cannot beforeseen, and shall not be amortized.
18.2 Estimated service life of intangible assets with limited service life
An intangible asset with a limited useful life shall be amortized evenly over the expected usefullife using the straight-line method for the original value minus the estimated net residual value andthe accumulated amount of provision for impairment from the time it is available for use.Intangible assets with uncertain service life shall not be amortized.
At the end of the period, review the useful life and amortization method of intangible assets with alimited useful life. If there is any change, it will be treated as a change in accounting estimates.
18.3 Judgment basis for intangible assets with uncertain service life and procedures forreviewing their service life
To review the service life of an intangible asset with a uncertain service life, if there is evidencethat the period of economic benefits brought by the intangible asset is predictable, estimate itsservice life and amortize according to the amortization policy for intangible assets with limitedservice life.
18.4 Specific criteria for dividing the research phase and the development phase
The company's internal research and development project expenditures are divided into researchphase expenditures and development phase expenditures.Research phase: it’s the phase of planned investigations and research activities with originality toacquire and understand new scientific or technical knowledge, etc.Development phase: it’s the phase to apply the research results or other knowledge to a certainplan or design so as to produce new or substantially improved materials, devices, products andother activities before commercial production or use.
Specific criteria for expenditure in the development phase to conform to capitalizationExpenditures in the development stage of internal research and development projects arerecognized as intangible assets when the following conditions are met simultaneously:
1. It is technically feasible to complete the intangible asset so that it can be used or sold;
2. There is an intention to complete the intangible asset and use or sell it;
3. The way that intangible assets generate economic benefits, including the ability to prove that theproducts produced by the intangible assets are marketable or the intangible assets themselves aremarketable, and the intangible assets will be used internally, which can prove their usefulness;
4. There are sufficient technical, financial and other resource supports to complete thedevelopment of the intangible asset, and have the ability to use or sell the intangible asset;
5. The expenditure attributable to the development stage of the intangible asset can be reliablymeasured.
(19) Impairment of long-term assets
Long-term equity investments, investment real estate measured by the cost model, fixed assets,construction in progress, intangible assets with limited service life and other long-term assets thatshow signs of impairment on the balance sheet date shall be tested for impairment. If theimpairment test result shows that the recoverable amount of an asset is less than its carryingamount, the impairment provision will be made according to the difference and recognized as animpairment loss. The recoverable amount of an asset is the higher of its fair value less costs ofdisposal and the present value of the future cash flows expected to be derived from the asset.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 therecoverable amount of the asset group to which the asset belongs. The asset group is the smallestgroup of assets capable of generating cash flows independently.
As for the goodwill, intangible assets with an indefinite useful life and intangible assets beyondworking conditions, the impairment tests shall be carried out at least at the end of each year.
The Company conducts a goodwill impairment test. The book value of the goodwill formed by thebusiness combination shall be allocated to the relevant asset group according to a reasonablemethod from the date of purchase; if it is difficult to allocate to the relevant asset group, it shall beallocated to the relevant portfolio of asset groups. The Company allocates the book value ofgoodwill based on the relative benefits that the relevant asset group or portfolio of asset groupscan obtain from the synergies of the business combination, and conducts a goodwill impairmenttest on this basis.
When conducting an impairment test on a related asset group or portfolio of asset groups thatcontains goodwill, if there are signs of impairment for an asset group or portfolio of asset groupsrelated to goodwill, the asset group or portfolio of asset groups that does not contain goodwillshould be tested first, calculate the recoverable amount, and compare it with the relevant bookvalue to confirm the corresponding impairment loss. Then conduct an impairment test on the assetgroup or portfolio of asset groups that contains goodwill, and compare the book value of theserelated asset groups or asset group portfolios (including the book value of the allocated goodwill)with the recoverable amount, if the recoverable amount of the relevant asset group or the assetgroup portfolio is lower than its book value, the impairment loss of goodwill shall be recognized.
Once the above assets impairment loss is recognized, it will not be carried back in futureaccounting periods.
(20) Long-term deferred expenses
The Company's long-term deferred expenses refer to the expenses that have been paid, but thebenefit period is more than one year (excluding one year). Long-term deferred expenses areamortized in installments according to the benefit period of the expense items. If the long-termdeferred expense item cannot benefit the future accounting period, all the amortized value of theitem that has not been amortized shall be transferred to the current profit and loss.
(21) Contractual liabilities
Contractual liabilities refer to the Company's obligation to transfer goods or services to customersfor consideration received or receivable from customers. Contractual assets and contractualliabilities under the same contract are presented in net amount.
(22) Staff remuneration
22.1 Accounting treatment of a short-term compensation
During the accounting period when employees provide services to the Company, the Companyrecognizes the actual short-term compensation as a liability and includes it in the current profit andloss or the cost of related assets.
The social insurance premiums and housing provident fund paid by the Company for employees,as well as the labor union funds and employee education funds drawn in accordance with theregulations, of which the corresponding employee compensation amount shall be calculated anddetermined according to the specified accrual basis and accrual ratio during the accounting periodwhen the employees provide services to the Company.
If employee welfare expenses are non-monetary and can be measured reliably, they shall bemeasured at fair value.
22.2 Accounting treatment methods for post-employment benefits
(1) Defined contribution plans
The Company pays basic endowment insurance and unemployment insurance for employees inaccordance with the relevant regulations of the local government. During the accounting periodwhen employees provide services to the Company, the amount payable is calculated based on thelocal payment base and proportion, recognized as a liability, and included in current profit and lossor related asset cost.
In addition to basic endowment insurance, the Company has also established an enterprise annuitypayment system (supplementary endowment insurance)/enterprise annuity plan in accordance withthe relevant policies of the national enterprise annuity system. The Company pays a certainpercentage of the total wages of employees to the local social insurance agency/annuity plan, andthe corresponding expenditure is included in the current profit and loss or the cost of relatedassets.
(2) Defined benefit plans
The Company assigns the welfare obligations arising from the defined benefit plans to the periodduring which the employees provide services according to the formula determined by the expectedcumulative welfare unit method, and includes them in the current profit and loss or the cost ofrelated assets.
The deficit or surplus formed by the present value of the defined benefit plan’s obligations minusthe fair value of the defined benefit plan’s assets is recognized as a defined benefit plan’s netliabilities or net assets. If there is a surplus in the defined benefit plan, the Company shall use thelower of the surplus of the defined benefit plan and the asset ceiling to measure the net assets ofthe defined benefit plan.
All defined benefit plans obligations, including obligations expected to be paid within twelvemonths after the end of the annual reporting period in which employees provide services, arediscounted based on the market yield of the national debt matching with the obligation period andcurrency of the defined benefit plan or the high-quality corporate bonds in an active market on thebalance sheet date.
The service cost incurred by the defined benefit plan and the net interest of the net liabilities or netassets of the defined benefit plan are included in the current profit and loss or the related asset cost;the changes in net liabilities or net assets resulting from the remeasurement of defined benefitplans are included in other comprehensive income, and shall not be transferred back to profit orloss in the subsequent accounting period, and the part that was originally included in othercomprehensive income will be carried forward to undistributed profit within the scope of equitywhen the original defined benefit plan is terminated.
In the settlement of the defined benefit plan, the difference between the present value of theobligation of the defined benefit plan and the settlement price determined on the settlement date isused to confirm the settlement gain or loss.
22.3 Accounting treatment methods for dismissal benefits
When the Company cannot unilaterally withdraw the dismissal benefits provided by thetermination of the labor relationship plan or redundancy proposal, or when confirming the costs orexpenses related to the reorganization involving the payment of the dismissal benefits (the earlierof the two), recognize employee compensation liabilities arising from dismissal benefits andinclude in the current profit and loss.
(23) Accrual liability
23.1 Recognition criteria
The obligations with contingencies concerned as litigation, debt guarantee and contract in loss arerecognized as accrual 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.
23.2 Measurement on vary accrual liability
The Company's accrual liabilities are initially measured based on the best estimate of theexpenditure required to perform the relevant current obligations.
When determining the best estimate, the Company comprehensively considers factors such asrisks, uncertainties and time value of money related to contingencies. If the time value of moneyhas a significant impact, the best estimate is determined after discounting the relevant future cashoutflows.The best estimates are handled separately in the following situations:
If there is a continuous range (or interval) for the required expenditure, and the probability ofoccurrence of various results within this range is the same, the best estimate is determinedaccording to the middle value of the range, that is, the average number of the upper and lowerlimits.
There is no continuous range (or interval) for the required expenditure, or although there is acontinuous range, the possibility of occurrence of various results within the range is not the same,if the contingency involves a single item, the best estimate shall be determined based on theamount most likely to occur; if the contingency involves multiple items, the best estimate shall becalculated and determined according to various possible outcomes and related probabilities.
If all or part of the expenditures required by the Company to settle the accrual liabilities areexpected to be compensated by a third party, the compensation amount shall be separatelyrecognized as an asset when it is basically certain that it can be received, and the confirmedcompensation amount shall not exceed the book value of the accrual liability.
(24) Revenue
General principlesThe Company recognizes the income when it has fulfilled its performance obligations in thecontract, that is, when the customer has obtained control of the relevant goods or services. Theperformance obligation refers to the commitment in the contract that the Group transfers clearlydistinguishable goods or services to the customer. Obtaining control over related goods or servicesmeans being able to lead the use of the goods or the provision of the service and obtain almost allof the economic benefits.
For a performance obligation that meets one of the following conditions and is performed within acertain period of time, the Company recognizes revenue within a period of time according to theperformance of the contract: (1) The customer obtains and consumes the economic benefitsbrought by the Company's performance at the same time as the Company fulfills the contract; (2)The customer can control the products under construction during the performance of the Company;
(3) The products produced during the performance of the Company have irreplaceable uses, andthe Company has the right to collect payment for the accumulated performance part that has beencompleted so far during the entire contract period. Otherwise, the Company recognizes revenue atthe point when the customer obtains control of the relevant goods or services.
Variable considerationSome of the Company’s contracts with customers include sales rebates, quantity discounts,commercial discounts, performance bonuses and claims, which forms variable consideration. TheCompany determines the best estimate of the variable consideration based on the expected valueor the most likely amount, but the transaction price that includes the variable consideration doesnot exceed the amount that the accumulated recognized revenue is most unlikely to be materiallyreversed when the relevant uncertainty is eliminated.
Significant financing componentIf there is a significant financing component in the contract, the Company shall determine thetransaction price based on the amount payable in cash when the customer assumes control of thegoods or services. The difference between the transaction price and the contract considerationshall be amortized by the effective interest method during the contract period.
On the starting date of the contract, if the company expects the customer to obtain control of theproduct and the customer pays the payment within one year, the significant financing componentin the contract will not be considered.
Non-cash considerationIf the customer pays a non-cash consideration, the Company shall determine the transaction pricebased on the fair value of the non-cash consideration. If the fair value of the non-cashconsideration cannot be reasonably estimated, the Company indirectly determines the transactionprice by referring to the stand-alone selling price of the goods promised to be transferred to thecustomer. If the fair value of non-cash consideration changes due to reasons other than the form ofconsideration, it shall be used as variable consideration for accounting treatment in accordancewith relevant regulations.
Consideration payable to customers
For the consideration payable to customers, the Company offsets the transaction price from theconsideration payable to the customer, and offsets the current revenue at the time point of the laterwhen the relevant revenue is recognized and the promised payment of the customer consideration,unless the consideration payable is to obtain other clearly distinguished products from thecustomer.
Sales with sales return clausesFor sales with a sales return clause, when the customer obtains control of the relevant product, ourcompany recognizes the revenue in accordance with the amount of consideration expected to beentitled to be collected due to transfer of goods to customers (that is, does not include the amountexpected to be refunded due to sales returns), and recognizes liabilities in accordance with theamount expected to be refunded due to sales returns. At the same time, according to the expectedbook value of the returned goods at the time of transfer, the balance after deducting the estimatedcost of recovering the goods (including the value impairment of the returned goods) is recognizedas an asset, and the net carry-over cost of the above asset cost is deducted according to the bookvalue of the transferred commodity at the time of transfer. On each balance sheet date, re-estimatethe future sales return situation, and if there is any change, it will be treated as a change inaccounting estimates.
Sales with quality assurance clausesFor sales with quality assurance clauses, if the quality assurance provides a separate service inaddition to ensuring that the goods or services sold to the customer meet the established standards,the quality assurance constitutes a single performance obligation. Otherwise, the Company willmake an accounting treatment for quality assurance responsibilities in accordance with the"Accounting Standards for Business Enterprises No. 13 - Contingencies".
Principal and agentThe Company judges whether the Company’s identity is the principal responsible person or anagent at the time of the transaction based on whether it has control over the product or servicebefore the transfer of the product or service to the customer. If the Company is able to control theproducts or services before transferring the products or services to the customers, the Company isthe principal responsible person, and the income is recognized based on the total considerationreceived or receivable; otherwise, the Company is the agent, and the income is recognizedaccording to the amount of commission or handling fee expected to have the right to collect, theamount is determined according to the net amount of the total consideration received or receivableafter deducting the price payable to other related parties, or according to the establishedcommission amount or ratio.
Sales with additional purchase options for customers
For sales with additional purchase options for customers, the Company assesses whether theoption provides customers with a major right. If an enterprise provides a major right, it shall be asingle performance obligation, and the transaction price shall be allocated to the performanceobligation in accordance with the relevant provisions of the standards. When the customerexercises the purchase option in the future to obtain control of the relevant commodity, or whenthe option lapses, the corresponding income shall be recognized. If the stand-alone selling price ofthe customer's additional purchase option cannot be directly observed, the Company shallreasonably estimate after considering all relevant information such as the difference between thediscounts that the customer can obtain from exercising and not exercising the option, thepossibility of the customer exercising the option, etc.. Although the customer has additionallypurchased the commodity option, the price at the time when the customer exercises the option topurchase the commodity reflects the stand-alone selling price of these commodities, and it shouldnot be considered that the company has provided the customer with a major right.
Grant intellectual property licenses to customersIf an intellectual property license is granted to a customer, the Company assesses whether theintellectual property license constitutes a single performance obligation in accordance with therelevant provisions of the standards, and if it constitutes a single performance obligation, it shallfurther determine whether it will be performed within a certain period of time or at a certain pointin time.When the following conditions are met at the same time, the relevant revenue is recognized as aperformance obligation performed within a certain period of time; otherwise, the relevant revenueis recognized as a performance obligation performed at a certain point in time:
(1) Contract requirements or customers can reasonably expect that the enterprise will engage inactivities that have a significant impact on the intellectual property rights;
(2) The activity will have a favorable or unfavorable impact on customers;
(3) The activity will not result in the transfer of a certain commodity to the customer.
After-sales repurchase transactionFor after-sales repurchase transactions, the Company distinguishes the following two situations foraccounting treatment:
(1)If there is a repurchase obligation due to the existence of a long-term arrangement with thecustomer or the Company enjoys the repurchase right, the Company shall conduct thecorresponding accounting treatment as a lease transaction or financing transaction. Among them,if the repurchase price is lower than the original selling price, it shall be regarded as a leasetransaction, and shall be accounted for in accordance with the relevant provisions of the standards;if the repurchase price is not lower than the original selling price, it shall be regarded as afinancing transaction, and the financial liabilities shall be confirmed when receiving the client's
payment, and the difference between the payment and the repurchase price is recognized asinterest expenses during the repurchase period. If the Company fails to exercise the repurchaseright upon maturity, when the repurchase right expires, the financial liabilities is derecognized,and the revenue is recognized at the same time.
(2)If the Company is obliged to repurchase commodities at the request of the customer, it shallassess whether the customer has a major economic motivation to exercise the right of claim on thecommencement date of contract. If the customer has a major economic motivation to exercise theright of claim, the enterprise shall treat the after-sale repurchase as a lease transaction or financingtransaction, and conduct accounting treatment in accordance with the provisions of present article
(1); otherwise, the Company will treat it as a sales transaction with a sales return clause, andperform accounting treatments in accordance with relevant regulations of the standards.
Customer's unexercised rightsIf the Company receives advance payments from customers for sales of goods, it shall firstrecognize the payments as liabilities, and then convert them into revenue when the relevantperformance obligations are fulfilled. When the advance payment does not need to be refundedand the customer may waive all or part of its contract rights, the Company expects to be entitled toobtain the amount related to the contract rights waived by the customer, and the above-mentionedamount shall be recognized as revenue in proportion to the mode in which the customer exercisesthe contractual rights. Otherwise, the Company can only convert the relevant balance of the aboveliabilities into income when the possibility of the customer requesting it to perform the remainingperformance obligations is extremely low.
Initial fee no need to be refundedThe initial fee collected by the Company from the customer on the commencement date of thecontract (or close to the commencement date) shall be included in the transaction price, and it shallbe assessed whether the initial fee is related to the transfer of the promised goods to the customer.If the initial fee is related to the transfer of the promised goods to the customer, and the goodsconstitutes a single performance obligation, the Company recognizes the income at the transactionprice allocated to the goods when transferring the goods. If the initial fee is related to the goodspromised to transfer to the customer, but the goods does not constitute a single performanceobligation, the Company will recognize the income at the transaction price allocated to the singleperformance obligation when the single performance obligation containing the product is fulfilled.If the initial fee is not related to the goods promised to transfer to the customer, it shall be used asan advance payment for the goods to be transferred in the future, and shall be recognized asincome when the goods is transferred in the future.
If the Company has collected an initial fee that does not need to be refunded and should carry out
initial activities to perform the contract, but these activities do not transfer the promised goods tothe customer, the initial fee is related to the goods promised to be transferred in the future, andshould be recognized as revenue when transferring the goods in the future, and the Company doesnot consider these initial activities when determining the progress of the contract. The Company’sexpenditures for the initial activities should be recognized as an asset or included in the currentprofit and loss in accordance with the relevant provisions of the standards.Specific principlesThe Company recognizes the revenue when it fulfills its performance obligations in the contract,that is, when the customer obtains control of the relevant goods or services. Obtaining control overrelated goods or services means being able to lead the use of the goods or the provision of theservice and obtain almost all of the economic benefits from it.
(1) Commodity sales revenue
The sales contract between the Company and the customers usually only contains the performanceobligation for the transferred goods. The Company usually recognizes revenue at a certain point intime on the basis of comprehensive consideration of the following factors: obtaining the currentright to receive payment of the goods, the transfer of major risks and rewards in the ownership ofthe goods, the transfer of the legal ownership of the goods, and the transfer of the physical asset ofthe goods, the customer accepts the goods.
Electricity sales revenueThe Company produces electricity through firepower and realizes sales through integration intoGuangdong Power Grid. For electricity sales, the Company recognizes the realization of revenuewhen it has produced electricity and obtains the grid electricity statistical table confirmed by theElectric Power Bureau.
(2) Income from rendering of labor services
The service contracts between the Company and the customers usually include performanceobligations such as operation and maintenance services, labor services, etc.The Company evaluates the contract on the start date of the contract, identifies each individualperformance obligation contained in the contract, and determines whether each individualperformance obligation is performed within a certain period of time or at a certain point in time. Ifone of the following conditions is met, it is a performance obligation performed within a certainperiod of time, the Company recognizes revenue within a period of time according to the progressof the contract:
(1) The customer obtains and consumes the economic benefits brought by the Company'sperformance at the same time as the Company's performance;
(2) Customers can control the products under construction during the performance of theCompany;
(3) The goods produced by the Company during the performance of the contract haveirreplaceable uses, and the Company has the right to collect payment for the cumulativeperformance part that has been completed so far during the entire contract period. Otherwise, theCompany recognizes revenue at the time point when the customer obtains control of the relevantgoods or services.
○1Recognition standards of income from labor services provided by Environment ProtectionCompany:
The company recognizes revenue based on the obtained sludge treatment settlement statementjointly confirmed with the transportation company, the water purification unit, and the company.○
2Specific standards for revenue recognition of Engineering Company:
Debugging projects: when the debugging is successful, obtain the confirmation of successfuldebugging, and recognize the income according to the contract;Operation and maintenance, management projects: monthly revenue is temporarily estimated andrecognized based on attendance time and labor prices of attendants, and the temporary estimatedrevenue will be adjusted after obtaining the monthly statement confirmed by the supplier's stampand signature, the progress confirmation letter, and the attendance sheet.
(25)Contractual costs
The cost of obtaining the contractIf the incremental cost (that is, the cost that would not be incurred without obtaining the contract)incurred by the Company to obtain the contract is expected to be recovered, it shall be recognizedas an asset, and use the same basis for the recognition of the income of goods or services related tothe asset for sales, and be included in the current profit and loss. If the asset amortization perioddoes not exceed one year, it shall be included in the current profit and loss when it occurs. Otherexpenses incurred by the Group in order to obtain the contract shall be included in the currentprofit and loss when incurred, except for those clearly borne by the customer.
The cost of fulfilling the contractThe cost incurred by the Company for the performance of the contract that does not fall within thescope of other accounting standards for business enterprises except the income standard and meetsthe following conditions at the same time is recognized as an asset: (1) The cost is directly relatedto a current or expected contract; (2) The cost increases the resources of the Group for fulfillingthe performance obligations in the future; (3) The cost is expected to be recovered. Theabove-mentioned assets are amortized on the same basis as the recognition of the income of goodsor services related to the asset and included in the current profit and loss.
Contract cost impairment
When the Company determines the impairment loss of assets related to the contract cost, it firstdetermines the impairment loss of other assets related to the contract that are confirmed inaccordance with other relevant enterprise accounting standards; then, based on the differencebetween the book value of which is higher than the remaining consideration that the Company isexpected to obtain due to the transfer of the asset-related commodities and the estimated cost oftransferring the related commodities, the excess shall be provided for impairment and recognizedas an asset impairment loss.
If the impairment factors of the previous period have changed, causing the aforementioneddifference is higher than the book value of the asset, the original provision for asset impairmentshall be reversed and included in the current profit and loss, but the book value of the asset afterthe reversal shall not exceed the book value of the asset on the date of reversal under theassumption that no impairment provision is made.
(25) Contractual costs
The cost of obtaining the contractIf the incremental cost (that is, the cost that would not be incurred without obtaining the contract)incurred by the Company to obtain the contract is expected to be recovered, it shall be recognizedas an asset, and use the same basis for the recognition of the income of goods or services related tothe asset for sales, and be included in the current profit and loss. If the asset amortization perioddoes not exceed one year, it shall be included in the current profit and loss when it occurs. Otherexpenses incurred by the Group in order to obtain the contract shall be included in the currentprofit and loss when incurred, except for those clearly borne by the customer.
The cost of fulfilling the contractThe cost incurred by the Company for the performance of the contract that does not fall within thescope of other accounting standards for business enterprises except the income standard and meetsthe following conditions at the same time is recognized as an asset: (1) The cost is directly relatedto a current or expected contract; (2) The cost increases the resources of the Group for fulfillingthe performance obligations in the future; (3) The cost is expected to be recovered. Theabove-mentioned assets are amortized on the same basis as the recognition of the income of goodsor services related to the asset and included in the current profit and loss.
Contract cost impairmentWhen the Company determines the impairment loss of assets related to the contract cost, it firstdetermines the impairment loss of other assets related to the contract that are confirmed inaccordance with other relevant enterprise accounting standards; then, based on the differencebetween the book value of which is higher than the remaining consideration that the Company is
expected to obtain due to the transfer of the asset-related commodities and the estimated cost oftransferring the related commodities, the excess shall be provided for impairment and recognizedas an asset impairment loss.
If the impairment factors of the previous period have changed, causing the aforementioneddifference is higher than the book value of the asset, the original provision for asset impairmentshall be reversed and included in the current profit and loss, but the book value of the asset afterthe reversal shall not exceed the book value of the asset on the date of reversal under theassumption that no impairment provision is made.
(26) Government subsidy
26.1 Type
Government subsidy refers to the monetary asset and non-monetary asset that the Companyobtains from the government free of charge which are divided into the asset-related governmentsubsidy and the income-related government subsidy.
Government subsidies related to assets refer to government subsidies obtained by the Company forpurchase and construction or to form long-term assets in other ways. Government subsidies relatedto income refer to government subsidies other than government subsidies related to assets.
26.2 Time point of recognition
If there is evidence at the end of the period that the company can meet the relevant conditionsstipulated in the financial support policy and is expected to receive financial support funds, thegovernment subsidy shall be recognized according to the amount receivable. In addition,government subsidies are confirmed when they are actually received.
If a government subsidy is a monetary asset, it shall be measured at the amount received orreceivable. If a government subsidy is a non-monetary asset, it shall be measured at its fair value;if its fair value cannot be obtained reliably, it shall be measured at its nominal amount (1 Yuan).Government subsidies measured at their nominal amounts are directly included in the currentprofits and losses.
26.3 Accounting treatment
Government subsidies related to assets are used to offset the book value of related assets or berecognized as deferred income, those recognized as deferred income shall be included in the
current profit and loss (those related to the Company’s daily activities shall be included in otherincome; those not related to the Company’s daily activities shall be included in the non-operatingincome) in a reasonable and systematic way within the useful life of the relevant assets;
Government subsidies related to income that are used to compensate the Company’s related costsor losses in subsequent periods shall be recognized as deferred income, and shall be included inthe current profits and losses (those related to the Company’s daily activities shall be included inother income; those not related to the Company’s daily activities shall be included in thenon-operating income) or used to offset related costs or losses during the period when the relevantcosts or losses are recognized; those used to compensate the Company’s related costs or losses aredirectly included in the current profits and losses (those related to the Company’s daily activitiesshall be included in other income; those not related to the Company’s daily activities shall beincluded in the non-operating income) or used to offset related costs or losses.
The policy-related preferential loan interest discount obtained by the Company is divided into thefollowing two situations and is accounted for separately:
(1) The finance allocates interest subsidy to the lending bank, if the lending bank provides loans tothe Company at a preferential policy interest rate, the Company uses the amount of borrowingactually received as the entry value of the loan, and calculates the related borrowing costsaccording to the loan principal and the policy preferential interest rates.
(2) If the finance directly allocates interest subsidy funds to the Company, the Company will offsetthe corresponding interest discount against the relevant borrowing costs.
(27) Deferred income tax asset/ deferred income tax liability
For deductible temporary differences to recognize deferred income tax assets, they shall be withinthe limit of the taxable income that is likely to be obtained in the future to deduct deductibletemporary differences. For the deductible losses and tax deductions that can be carried forward forsubsequent years, they shall be within the limit of the future taxable income that is likely to beused to deduct the deductible losses and tax deductions to recognize the corresponding deferredincome tax assets.
For taxable temporary differences, except for special circumstances, deferred income tax liabilitiesare recognized.
Special circumstances that do not recognize deferred income tax assets or deferred income taxliabilities include initial recognition of goodwill; Other transactions or matters that do not affectaccounting profits or taxable income (or deductible losses) when they occur except for a business
combination.
When having the statutory right to settle on a net basis, and intending to settle on a net basis orobtain assets and pay off liabilities at the same time, the current income tax assets and currentincome tax liabilities are presented as the net amount after offsetting.
When having the statutory right to settle current income tax assets and current income taxliabilities on a net basis, and the deferred income tax assets and deferred income tax liabilities arerelated to the income tax levied by the same tax administration department on the same taxpayeror related to different taxpayers, however, in the future period during which important deferredincome tax assets and liabilities are reversed, when the taxpayer involved intends to settle thecurrent income tax assets and liabilities on a net basis or obtain assets and repay liabilities at thesame time, the deferred income tax assets and deferred income tax liabilities are presented as thenet amount after offsetting.
(28) Leasing
A leasing is a contract in which the lessor cedes the right to use an asset to the lessee for a certainperiod of time in return for consideration.
28.1 The Company acts as the lessee
The Company recognizes the right-of-use assets on the commencement date of the lease term andrecognizes the lease liabilities at the present value of the outstanding lease payments. The leasepayments include fixed payments, as well as payments where there is reasonable certainty that apurchase option will be exercised or a lease option will be terminated. The variable rentdetermined based on a certain percentage of sales is not included in the lease payment, and isincluded in the current profit and loss when it actually occurs.
The Company’s right-of-use assets include leased houses and buildings, machinery and equipment,means of transport, computers and electronic equipment, etc.
For short-term leases with a lease term of less than 12 months and low-value asset leases with alow value when a single asset is brand-new, the Company chooses not to recognize theright-of-use assets and lease liabilities, and includes the relevant rental expenses into currentprofits and losses or the relevant assets cost in each period of the lease term according to thestraight-line method.
28.2 The Company acts as the lessor
A lease that transfers substantially all the risks and rewards associated with the ownership of theleased asset is a finance lease. Other leases are operating leases.
(1) Operating lease
When the Company operates leased buildings, machinery and equipment, and means of transport,the rental income from operating leases shall be recognized in accordance with the straight-linemethod during the lease term. The Company will include variable rent determined based on apercentage of sales in rental income when it actually incurs.
(2) Finance lease
On the beginning date of the lease term, the Company recognizes the finance lease receivables forfinance leases and derecognizes related assets. The Company presents the finance leasereceivables as long-term receivables, and the finance lease receivables received within one year(including one year) from the balance sheet date are presented as non-current assets due withinone year.
(29) Changes of major accounting policy and accounting estimation
29.1 Change of major accounting policies
No changes of major accounting policy during the reporting period
29.2 Change of major accounting estimation
No change of major accounting estimation during the reporting period
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. | 13%, 9%, 6%, 5%, 3% |
| City maintenance tax | According to the actual payment of VAT and consumption tax | 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 | 25%, 17%, 16.5%, 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 |
(2) Explanation of the income tax rate of the taxpayer of enterprise income tax
| Taxpaying body | Rate of income tax |
| The Company | 15% |
| New Power | 25% |
| Engineering Company | 15% |
| Shenzhen Server | 25% |
| Environment Protection Company | 15% |
| Zhongshan Electric Power | 25% |
| Singapore Company | 17% |
| Shen Storage | 25% |
| Syndisome (HK) | 16.5% |
(3) Preferential tax policies and basis
1. Preferential corporate income tax policy:
(1) According to the Record List of the Second Batch of High-tech Enterprises recognized byShenzhen in 2021, Shenzhen Nanshan Power Co., Ltd. has obtained the National High-techEnterprise Certification no. GR202144204080, which is valid for 3 years. From 2021 to 2023, thecompany enjoys the preferential corporate income tax of high-tech enterprises, the corporateincome tax is paid at the rate of 15.00%.
(2) According to the Document GKHZ (2020) No. 46, Shenzhen Shennandian TurbineEngineering Technology Co., Ltd. has obtained the National High-tech Enterprise Certification no.GR202044200352, which is valid for 3 years. From 2020 to 2022, the company enjoys thepreferential corporate income tax of high-tech enterprises, the corporate income tax is paid at therate of 15.00%.
(3) According to the Document GKHZ (2020) No. 46, Shenzhen Shen Nan Dian EnvironmentProtection Co., Ltd has obtained the National High-tech Enterprise Certification no.GR202044200405, which is valid for 3 years. From 2020 to 2022, the company enjoys thepreferential corporate income tax of high-tech enterprises, the corporate income tax is paid at therate of 15.00%.
2. Value-added tax preferential policies:
| Tax | Name of the company | Relevant regulation and policies basis | Approval institution | Approval documents | Exemption range | Period of validity |
| VAT | Environment | Notice on "contents of products with | Shenzhen Provincial | SQSST[2018]No.: 18302 | Resource comprehensi | 31 Aug. 2018 to 31 |
Tax
| Tax | Name of the company | Relevant regulation and policies basis | Approval institution | Approval documents | Exemption range | Period of validity |
| Protection Company | comprehensive utilization of resources and value-added tax privilege of labor service" (CS No. [2015] 78) | Office, SAT (Qianhai SAT) | ve utilization of VAT refund | July 2022 | ||
| VAT | Engineering Company | Administrative Measures on VAT Exemption for Cross-boarder Taxable Acts with VAT Replaced by Business Tax | Shenzhen Provincial Office, SAT (Qianhai SAT) | VAT Exemption for Cross-boarder Taxable Acts |
V. Annotation of the items in consolidate financial statement
(1) Monetary fund
| Item | Ending balance | Balance at the end of last year |
| Cash on hand | 36,401.40 | 35,963.95 |
| Bank savings | 420,081,707.79 | 456,715,650.80 |
| Other monetary fund | 49,900,000.00 | 232,853,018.84 |
| Total | 470,018,109.19 | 689,604,633.59 |
| Including: total amount saving aboard | 5,829,122.75 | 51,205,621.70 |
No monetary funds that are restricted to use due to mortgage, pledge or freezing, and are placed overseas and therepatriation of funds are restricted.
(2) Trading financial assets
| Item | Ending balance | Balance at the end of last year |
| Financial assets measured by fair value and with variation reckoned into current gains/losses | 1,207,902,833.22 | 560,000,726.39 |
| Including: Debt instrument investment | ||
| Equity instrument investment | ||
| Other | 1,207,902,833.22 | 560,000,726.39 |
| Designated as financial assets measured by fair value and with variation reckoned into current gains/losses | 72,873,680.00 | 72,873,680.00 |
| Including: Debt instrument investment | ||
| Equity instrument investment | 72,873,680.00 | 72,873,680.00 |
| Total | 1,280,776,513.22 | 632,874,406.39 |
(3) Account receivable
1. Age analysis
Account age
| Account age | Ending balance | Balance at the end of last year |
| Within one year | 81,916,225.11 | 73,610,161.02 |
| 1-2 years | 54,706,402.12 | |
| Over 3 years | 5,558,673.67 | 5,558,673.67 |
| Subtotal | 142,181,300.90 | 79,168,834.69 |
| Less: Bad debt provision | 5,558,673.67 | 5,558,673.67 |
| Total | 136,622,627.23 | 73,610,161.02 |
2. According to accrual method for bad debts
| Category | Ending balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| Accounts receivable with single provision for bad debts | 5,558,673.67 | 3.91 | 5,558,673.67 | 100.00 | - |
| Provision for bad debts by combination of risk characteristics | 136,622,627.23 | 96.09 | 136,622,627.23 | ||
| Including: risk-free portfolio | 136,622,627.23 | 96.09 | - | - | 136,622,627.23 |
| Total | 142,181,300.90 | 100.00 | 5,558,673.67 | 3.91 | 136,622,627.23 |
| Category | Balance at the end of last year | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| Accounts receivable with single provision for bad debts | 5,558,673.67 | 7.02 | 5,558,673.67 | 100.00 | |
| Provision for bad debts by combination of risk characteristics | 73,610,161.02 | 92.98 | 73,610,161.02 | ||
| Including: risk-free portfolio | 73,610,161.02 | 92.98 | 73,610,161.02 | ||
| Total | 79,168,834.69 | 100.00 | 5,558,673.67 | 7.02 | 73,610,161.02 |
With single provision for bad debts
| Name | Ending balance | |||
| Book balance | 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., Ltd. | 1,137,145.51 | 1,137,145.51 | 100.00 | Uncollectible in excepted |
| Shenzhen Fuhuade Power Co., Ltd | 800,000.00 | 800,000.00 | 100.00 | Uncollectible in excepted |
| Other | 146,915.10 | 146,915.10 | 100.00 | Uncollectible in excepted |
| Total | 5,558,673.67 | 5,558,673.67 | 100.00 | |
3. Bad debt provision accrual, collected or switch back
| Category | Balance at the end of last year | Current amount changed | Ending balance | ||
| Accrual | Collected or switch back | Other | |||
| Accounts receivable with single provision for bad debts | 5,558,673.67 | 5,558,673.67 | |||
| Total | 5,558,673.67 | 5,558,673.67 | |||
4. Top 5 receivables at Ending balance by arrears party
Total period-end balance of top five receivables by arrears party amounting to 140,097,189.39Yuan, takes98.53% of the total account receivable at period-end, bad debt provision accrualcorrespondingly at period-end amounting as 3,474,613.06 Yuan
(4) Account paid in advance
1. Account paid in advance classified according to age
| Account age | Ending balance | Balance at the end of last year | ||
| Book balance | Proportion (%) | Book balance | Proportion (%) | |
| Within one year | 34,913,117.53 | 98.15 | 63,880,339.98 | 99.17 |
| 1-2 years | 596,049.24 | 1.68 | 441,309.74 | 0.69 |
| Over 3 years | 61,586.94 | 0.17 | 93,586.94 | 0.14 |
| Total | 35,570,753.71 | 100.00 | 64,415,236.66 | 100.00 |
2. Top five accounts paid in advance at period-end balance listed by object
The aggregate amount of the top five Ending balance of account paid in advance collected by thearrears is 33,083,457.32 Yuan, accounting for 93.01% of the total number of account in Endingbalance of paid in advance
(5) Other account receivable
| Item | Ending balance | Balance at the end of last year |
| Interest receivable | ||
| Dividends receivable | ||
| Other account receivable | 27,889,289.20 | 25,841,206.66 |
| Total | 27,889,289.20 | 25,841,206.66 |
1. Other account receivable
(1) Age analysis
| Account age | Ending balance | Balance at the end of last year |
| Within one year | 4,647,856.81 | 3,823,549.28 |
| 1-2 years | 450,539.90 | 553,190.98 |
| 2-3 years | 1,288,672.21 | 1,765,816.10 |
| Over 3 years | 53,542,607.89 | 51,739,037.91 |
| Subtotal | 59,929,676.81 | 57,881,594.27 |
| Less: Bad debt provision | 32,040,387.61 | 32,040,387.61 |
| Total | 27,889,289.20 | 25,841,206.66 |
(2) By category
| Category | Ending balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| Accounts receivable with single provision for bad debts | 32,676,165.92 | 54.52 | 32,040,387.61 | 98.05 | 635,778.31 |
| Provision for bad debts by | 27,253,510.89 | 45.48 | - | - | 27,253,510.89 |
Category
| Category | Ending balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| portfolio of credit risk | |||||
| Including: risk-free portfolio | 27,253,510.89 | 45.48 | |||
| Total | 59,929,676.81 | 100.00 | 32,040,387.61 | 53.46 | 27,889,289.20 |
| Category | Balance at the end of last year | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| Accounts receivable with single provision for bad debts | 32,676,135.85 | 56.45 | 32,040,387.61 | 98.05 | 635,748.24 |
| Provision for bad debts by portfolio of credit risk | 25,205,458.42 | 43.55 | 25,205,458.42 | ||
| Including: risk-free portfolio | 25,205,458.42 | 43.55 | 25,205,458.42 | ||
| Total | 57,881,594.27 | 100.00 | 32,040,387.61 | 55.36 | 25,841,206.66 |
With single provision for bad debts：
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual proportion (%) | Causes | |
| Huiyang Kangtai Industrial Company | 14,311,626.70 | 14,311,626.70 | 100.00 | Unable to recover |
| Individual income tax | 2,470,039.76 | 2,470,039.76 | 100.00 | Unable to recover |
| Dormitory amount receivable | 2,083,698.16 | 1,736,004.16 | 83.31 | Unable to recover |
| Deposit receivable | 1,601,059.26 | 1,312,974.95 | 82.01 | Unable to recover |
| Personal receivables | 7,498,997.87 | 7,498,997.87 | 100.00 | Unable to recover |
| Shandong Jinan Generation Equipment Plant | 3,560,000.00 | 3,560,000.00 | 100.00 | Unable to recover |
| Zuohao Clothing (Shenzhen) Co., Ltd. | 43,068.31 | 43,068.31 | 100.00 | Unable to recover |
| Shenzhen Guanhua Printing and Dyeing Co., Ltd. | 53,591.75 | 53,591.75 | 100.00 | Unable to recover |
| Shenzhen Nanhua Printing and Dyeing Co., Ltd. | 41,407.01 | 41,407.01 | 100.00 | Unable to recover |
Name
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual proportion (%) | Causes | |
| Huizhou Bangde Agricultural Ecological Organic Fertilizer Co., Ltd. | 25,788.00 | 25,788.00 | 100.00 | Unable to recover |
| Huizhou Lvhuan Fertilizer Co., Ltd. | 44,112.1 | 44,112.1 | 100.00 | Unable to recover |
| Other | 942,777.00 | 942,777.00 | 100.00 | Unable to recover |
| Total | 32,676,165.92 | 32,040,387.61 | 98.05 | |
(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 | 32,040,387.61 | 32,040,387.61 | ||
| Balance at year-begin of the period | ||||
| ——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 | ||||
| Ending balance | 32,040,387.61 | 32,040,387.61 |
(3) By nature
| Nature | Ending book balance | Book balance at last year-end |
| Deposit and security deposit | 7,729,415.18 | 8,213,574.51 |
| Reserve fund | 1,062,821.06 | 610,723.06 |
| Withholding payment | 4,423,719.97 | 9,182,463.86 |
Nature
| Nature | Ending book balance | Book balance at last year-end |
| Current payment | 30,752,297.03 | 24,404,083.76 |
| Accounts receivable of Huidong Server | 15,961,423.57 | 14,740,501.44 |
| Other | - | 730,247.64 |
| Subtotal | 59,929,676.81 | 57,881,594.27 |
| Less: Bad debt provision | 32,040,387.61 | 32,040,387.61 |
| Total | 27,889,289.20 | 25,841,206.66 |
(4) Top five other account receivables at period-end balance listed by arrears partyThe total amount of the top five other receivables at the end of the period aggregated by the owingparty was 40,697,322.19 Yuan, accounting for 67.91% of the total balance of other receivables atthe end of the period.
(6) Inventory
1. Classification
| Item | Ending balance | Balance at the end of last year | ||||
| Book balance | Inventory falling price reserves | Book value | Book balance | Inventory falling price reserves | Book value | |
| Raw materials | 144,898,465.30 | 58,744,912.57 | 86,153,552.73 | 149,489,121.27 | 61,358,046.54 | 88,131,074.73 |
| Low-value consumables | - | - | - | 369,916.40 | 369,916.40 | |
| Total | 144,898,465.30 | 58,744,912.57 | 86,153,552.73 | 149,859,037.67 | 61,358,046.54 | 88,500,991.13 |
2. Inventory falling price reserves
| Item | Balance at the end of last year | Current increased | Current decreased | Ending balance | ||
| Accrual | Other | Switch-back or write-off | Other | |||
| Raw materials | 61,358,046.54 | 2,613,133.97 | 58,744,912.57 | |||
| Total | 61,358,046.54 | 2,613,133.97 | 58,744,912.57 | |||
(7) Contract assets
| Item | Ending balance | Balance at the end of last year |
Item
| Item | Ending balance | Balance at the end of last year |
| Operation and maintenance project settlement accounts receivable | 1,040,000.00 | |
| Subtotal | 1,040,000.00 | |
| Provision for impairment of contract assets | ||
| Total | 1,040,000.00 |
(8) Other current assets
| Item | Ending balance | Balance at the end of last year |
| VAT input tax deductible | 2,292,514.98 | 324,040,257.98 |
| Income tax paid in advance | 6,583,089.98 | 6,583,089.98 |
| Accrual interest of time deposit | - | 1,195,914.66 |
| Other | 49,399.00 | 49,399.00 |
| Total | 8,925,003.96 | 331,868,661.62 |
(9) Long-term equity investment
| The invested entity | Balance at the end 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 | 6,986,655.19 | -1,471,602.77 | 5,515,052.42 | ||||||||
| Total | 6,986,655.19 | -1,471,602.77 | 5,515,052.42 | ||||||||
(10) Other equity instrument investment
1. Other equity instrument investment
| Item | Ending balance | Balance at the end of last year |
| CPI Jiangxi Nuclear Power Company | 60,615,000.00 | 60,615,000.00 |
| Zhongsheng Technology (Jiangsu) Co., Ltd. | 140,000,000.00 | 140,000,000.00 |
| Yuanzhi Credit Suisse New Generation Information Technology Equity Investment Fund | 100,000,000.00 | |
| Shenzhen Petrochemical Products Bonded Trading Co., Ltd. - investment cost | 2,500,000.00 | 2,500,000.00 |
| Shenzhen Petrochemical Products Bonded Trading Co., Ltd. - change in fair value | -2,500,000.00 | -2,500,000.00 |
| Total | 300,615,000.00 | 200,615,000.00 |
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 |
| CPI Jiangxi Nuclear Power Company | Intents to holding for a long-term | |||||
| Zhongsheng Technology (Jiangsu) Co., Ltd. | Intents to holding for a long-term | |||||
| Yuanzhi Ruixin New Generation Information Technology Equity Investment Fund | Intents to holding for a long-term | |||||
| Shenzhen Petrochemical Products Bonded Trading Co., Ltd. | -2,500,000.00 | Intents to holding for a long-term | ||||
| Total | -2,500,000.00 |
(11) Investment real estate
1. Investment real estate measured at cost
| Item | House and building | Total |
| 1. Original book value | ||
| (1) Balance at the end 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) Balance at the end of last year | 7,698,963.16 | 7,698,963.16 |
| (2) Current increased | 91,318.80 | 91,318.80 |
| (3) Current decreased | ||
| (4) Ending Balance | 7,790,281.96 | 7,790,281.96 |
| 3. Depreciation provision | ||
| (1) Balance at the end of last year | ||
| (2) Current increased | ||
| (3) Current decreased | ||
| (4) Ending Balance | ||
| 4. Book value | ||
| (1) Ending book value | 1,917,733.00 | 1,917,733.00 |
| (2) Book value of end of last year | 2,009,051.80 | 2,009,051.80 |
(12) Fixed assets
1. Fixed assets and disposal of fixed asset
| Item | Ending balance | Balance at the end of last year |
| Fixed assets | 616,039,027.88 | 643,256,398.30 |
| Disposal of fixed assets | 168,352.55 | |
| Total | 616,207,380.43 | 643,256,398.30 |
2. Fixed assets
| Item | House and buildings | Machinery equipment | Transportation tools | Other | Total |
| 1. Original book value | |||||
| (1) Balance at the end of last year | 426,009,822.97 | 3,191,370,467.04 | 14,881,705.15 | 61,313,836.82 | 3,693,575,831.98 |
| (2) Current increased | - | 2,290,055.69 | - | 245,646.63 | 2,535,702.32 |
| —Purchase | - | - | - | 245,646.63 | 245,646.63 |
| Construction in progress transfer-in | - | 2,290,055.69 | - | - | 2,290,055.69 |
| (3) Current decreased | - | 460,447,110.57 | - | 34,335.56 | 460,481,446.13 |
| —Disposal or scrapping | - | 460,447,110.57 | - | 34,335.56 | 460,481,446.13 |
| ---Decrease in disposal of subsidiaries | |||||
| (4) Ending Balance | 426,009,822.97 | 2,733,213,412.16 | 14,881,705.15 | 61,525,147.89 | 3,235,630,088.17 |
| 2. Accumulated depreciation | |||||
| (1) Balance at the end of last year | 286,391,266.26 | 2,308,965,299.56 | 8,678,482.02 | 46,874,270.77 | 2,650,909,318.61 |
| (2) Current increased | 5,064,242.49 | 7,543,455.65 | 881,933.91 | 1,428,063.14 | 14,917,695.19 |
| —Accrual | 5,064,242.49 | 7,543,455.65 | 881,933.91 | 1,428,063.14 | 14,917,695.19 |
| (3) Current decreased | - | 404,662,174.15 | - | 30,902.01 | 404,693,076.16 |
| —Disposal or scrapping | - | 404,662,174.15 | - | 30,902.01 | 404,693,076.16 |
| —Decrease in disposal of subsidiaries | |||||
| (4) Ending Balance | 291,455,508.75 | 1,911,846,581.06 | 9,560,415.93 | 48,271,431.90 | 2,261,133,937.64 |
Item
| Item | House and buildings | Machinery equipment | Transportation tools | Other | Total |
| 3. Depreciation provision | |||||
| (1) Balance at the end of last year | 22,469,672.10 | 376,720,124.57 | 56,300.08 | 164,018.32 | 399,410,115.07 |
| (2) Current increased | - | - | - | - | - |
| —Accrual | - | - | - | - | - |
| —Other | - | - | - | - | - |
| (3) Current decreased | - | 40,952,992.42 | - | - | 40,952,992.42 |
| —Disposal or scrapping | - | 40,952,992.42 | - | - | 40,952,992.42 |
| —Decrease in disposal of subsidiaries | |||||
| —Other | |||||
| (4) Ending Balance | 22,469,672.10 | 335,767,132.15 | 56,300.08 | 164,018.32 | 358,457,122.65 |
| 4. Book value | |||||
| (1) Ending book value | 112,084,642.12 | 485,599,698.95 | 5,264,989.14 | 13,089,697.67 | 616,039,027.88 |
| (2) Book value of end of last year | 121,297,084.35 | 501,536,843.17 | 6,146,923.05 | 14,275,547.73 | 643,256,398.30 |
3. Idle fixed assets temporary
| Item | Original book value | Accumulated depreciation | Depreciation provision | Book value | Note |
| Housing & buildings | 127,893,412.10 | 99,084,318.83 | 19,801,856.52 | 9,007,236.75 | |
| Machinery equipment | 108,281,079.11 | 78,046,419.35 | 28,514,659.76 | 1,720,000.00 | |
| Total | 236,174,491.21 | 177,130,738.18 | 48,316,516.28 | 10,727,236.75 |
4. Fixed assets without property rights certificate
| Item | Book value | Reasons for failing to complete the property rights certificate |
| Circulating Water Pump House | 1,009,125.92 | Procedures uncompleted |
| Cooling Tower | 673,259.25 | Procedures uncompleted |
| Complex Building | 443,246.19 | Procedures uncompleted |
| Comprehensive building canteen | 237,602.25 | Procedures uncompleted |
| Chemical water treatment workshop | 232,960.00 | Procedures uncompleted |
| Main entrance mail room | 69,418.02 | Procedures uncompleted |
| Total | 2,665,611.63 |
(13) Construction in progress
1. Construction in progress and Engineering materials
| Item | Ending balance | Balance at the end of last year |
| Construction in process | 5,609,774.20 | 6,088,768.51 |
| Engineering materials | ||
| Total | 5,609,774.20 | 6,088,768.51 |
2. Construction in progress
| Item | Ending balance | Balance at the end of last year | ||||
| Book balance | Depreciation provision | Book value | Book balance | Depreciation provision | Book value | |
| Cogeneration | 60,307,712.44 | 58,610,372.06 | 1,697,340.38 | 60,307,712.44 | 58,610,372.06 | 1,697,340.38 |
| Oil to Gas Works | 13,230,574.53 | 13,230,574.53 | - | 13,230,574.53 | 13,230,574.53 | |
| Technical innovation | 5,383,683.82 | 1,471,250.00 | 3,912,433.82 | 5,862,678.13 | 1,471,250.00 | 4,391,428.13 |
| Total | 78,921,970.79 | 73,312,196.59 | 5,609,774.20 | 79,400,965.10 | 73,312,196.59 | 6,088,768.51 |
3. Changes of significant projects in construction in the period
| Item | Budget | Balance at the end of last year | Current increased | Transferred fixed assets in this period | Other decrease in the period | Ending 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 | 60,307,712.44 | 60,307,712.44 | 100.51 | 100.00 | 6,476,185.46 | Self-raised and borrowing | |||||
| Oil to Gas Works | 74,000,000.00 | 13,230,574.53 | 13,230,574.53 | 17.88 | 17.88 | Self-raised | ||||||
| Technical innovation | 5,862,678.13 | 1,811,061.38 | 2,290,055.69 | 5,383,683.82 | Not applicable | Not applicable | Self-raised | |||||
| Total | 134,000,000.00 | 79,400,965.10 | 1,811,061.38 | 2,290,055.69 | 78,921,970.79 | 6,476,185.46 |
(14) Intangible assets
1. Intangible assets
| Item | Land use right | Software | Patent technology | Total |
| I. Original book value | ||||
| 1. Opening balance | 60,813,994.76 | 3,886,757.08 | 64,700,751.84 | |
| 2. Current increased | - | - | 103,773.59 | 103,773.59 |
| (1) Purchase | - | - | ||
| (2) Other | 103,773.59 | |||
| 3. Current decreased | 103,773.59 | 103,773.59 | ||
| (1) Purchase | - | - | ||
| (2) Other | 103,773.59 | |||
| 4.Ending balance | 60,813,994.76 | 3,782,983.49 | 103,773.59 | 64,700,751.84 |
| II. Accumulated amortization | - | |||
| 1. Opening balance | 40,643,255.55 | 3,591,589.43 | 44,234,844.98 | |
| 2. Current increased | 311,314.80 | 27,937.32 | 12,107.06 | 351,359.18 |
| (1) Accrual | 311,314.80 | 27,937.32 | 5,188.74 | 344,440.86 |
| (2) Other | 6,918.32 | 6,918.32 | ||
| 3. Current decreased | 6,918.32 | 6,918.32 | ||
| (1) Purchase | - | - | ||
| (2) Other | 6,918.32 | 6,918.32 | ||
| 4. Ending balance | 40,954,570.35 | 3,612,608.43 | 12,107.06 | 44,579,285.84 |
| III. Depreciation provision | - | |||
| 1. Opening balance | - | - | - | |
| 2. Current increased | - | |||
| (1) Accrual | - | - | - | |
| 3. Current decreased | - | |||
| (1) Disposal | - | - | - | |
| 4. Ending balance | - | - | - | |
| IV. Book value | - | |||
| 1. Ending book value | 19,859,424.41 | 170,375.06 | 91,666.53 | 20,121,466.00 |
| 2. Opening book value | 20,170,739.21 | 295,167.65 | - | 20,465,906.86 |
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 | 496,082.05 | Property rights certificate is undergoing |
| Total | 496,082.05 |
(15) Long-term deferred expenses
| Item | Balance at the end of last year | Current increased | Amortized in the Period | Other decrease | Ending balance |
| Decoration amount | 1,716,460.30 | 248,665.56 | 1,467,794.74 | ||
| Total | 1,716,460.30 | 248,665.56 | 1,467,794.74 |
(16) Deferred income tax assets and deferred income tax liabilities
Deferred income tax assets without offsetting
| Item | Ending balance | Balance at the end of last year | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Bad debt provision | 1,937,145.52 | 484,286.38 | 1,937,145.52 | 484,286.38 |
| Changes in fair value of other equity instrument investments | 2,500,000.00 | 625,000.00 | 2,500,000.00 | 625,000.00 |
| Total | 4,437,145.52 | 1,109,286.38 | 4,437,145.52 | 1,109,286.38 |
(17) Short-term loans
1. Classification
| Item | Ending balance | Balance at the end of last year |
| Credit loans | 1,330,598,458.05 | 856,861,840.80 |
| Accrued interest | 3,740,138.60 | 1,582,322.45 |
| Total | 1,334,338,596.65 | 858,444,163.25 |
(18) Note payable
| Species | Ending balance | Balance at the end of last year |
| Bank acceptance | 135,025,883.27 | |
| Total | 135,025,883.27 |
(19) Account payable
1. Account payable
| Item | Ending balance | Balance at the end of last year |
| Materials | 8,386,783.92 | 2,325,920.64 |
| Electricity | 1,496,861.44 | 1,078,066.07 |
| Labor | 5,731,540.00 | 3,299,480.00 |
| Total | 15,615,185.36 | 6,703,466.71 |
(20) Wages payable
1. Wages payable
| Item | Balance at the end of last year | Current increased | Current Decreased | Ending balance |
| Short-term remuneration | 40,963,433.02 | 54,391,066.00 | 53,680,371.33 | 41,674,127.69 |
| Post-employment welfare-defined contribution plans | 569,587.94 | 8,192,164.72 | 6,646,864.72 | 2,114,887.94 |
| Severance Pay | - | - | - | - |
| Other welfare due within one year | - | - | - | - |
| Total | 41,533,020.96 | 62,583,230.72 | 60,327,236.05 | 43,789,015.63 |
2. Short-term remuneration
| Item | Balance at the end of last year | Current increased | Current Decreased | Ending balance |
| (1) Wages, bonuses, allowances and subsidies | 40,511,401.25 | 44,939,801.21 | 44,253,012.74 | 41,198,189.72 |
| (2) Welfare for workers and staff | 62,077.00 | 489,000.00 | 460,200.00 | 90,877.00 |
| (3) Social insurance | 2,839,953.36 | 2,839,953.36 | - | |
| Including: Medical insurance | 2,719,017.40 | 2,719,017.40 | - | |
| Work injury insurance | 65,475.30 | 65,475.30 | - | |
| Maternity insurance | 55,460.66 | 55,460.66 | - | |
| (4) Housing accumulation fund | 5,232,609.76 | 5,232,609.76 | - | |
| (5) Labor union expenditure and personnel education expense | 389,954.77 | 889,701.67 | 894,595.47 | 385,060.97 |
| (6) Short-term paid absence | ||||
| (7) Short-term profit sharing plan |
Item
| Item | Balance at the end of last year | Current increased | Current Decreased | Ending balance |
| (8) Other | ||||
| Total | 40,963,433.02 | 54,391,066.00 | 53,680,371.33 | 41,674,127.69 |
3. Defined contribution plans (DCP)
| Item | Balance at the end of last year | Current increased | Current Decreased | Ending balance |
| Basic endowment insurance | 6,009,613.72 | 6,009,613.72 | - | |
| Unemployment insurance | 67,651.00 | 67,651.00 | - | |
| Enterprise annuity | 569,587.94 | 2,114,900.00 | 569,600.00 | 2,114,887.94 |
| Total | 569,587.94 | 8,192,164.72 | 6,646,864.72 | 2,114,887.94 |
(21) Taxes payable
| Item | Ending balance | Balance at the end of last year |
| VAT | 1,281,618.67 | 706,615.96 |
| Environmental tax | 62,437.77 | |
| Personal Income Tax | 1,497,246.21 | 1,402,165.48 |
| Urban maintenance and construction tax | 44,798.79 | 43,868.84 |
| Local education surcharge | 17,270.44 | 16,902.90 |
| Education surcharge | 25,905.66 | 25,354.34 |
| Property tax | 2,139,073.51 | 1,524,487.98 |
| Stamp duty | 63,247.50 | |
| Other | 495,375.97 | 300,759.12 |
| Total | 5,501,289.25 | 4,145,839.89 |
(22) Other account payable
| Item | Ending balance | Balance at the end of last year |
| Interest payable | ||
| Other account payable | 22,717,231.20 | 62,678,254.02 |
| Total | 22,717,231.20 | 62,678,254.02 |
1. Other account payable
(1) Other payable by nature
| Item | Ending balance | Balance at the end of last year |
| Engineering funds | 9,655,703.14 | 4,991,246.36 |
| Quality assurance | 6,558,306.04 | 6,308,254.95 |
| Accrued expenses | 3,506,506.84 | 8,537,422.41 |
| Material payment | - | 30,721,390.14 |
| Other | 2,996,715.18 | 12,119,940.16 |
| Total | 22,717,231.20 | 62,678,254.02 |
(2) Top five other payable
The ending balance of the top five other payable aggregated by the arrears party is 5,659,038.21Yuan, accounting for 24.91% of the total ending balance of other payable.
(23) Accrual liability
| Item | Balance at the end of last year | Current increased | Current Decreased | Ending balance | Reason |
| Pending litigation | 15,000,000.00 | 15,000,000.00 | |||
| Total | 15,000,000.00 | 15,000,000.00 |
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 saved12,500,000.00 Yuan in condominium deposit account as guarantee. In addition, Server pledged its 20% of equityholding from Huidong Server to Jiahua Architecture with pledge duration of 2 years. The amount of collateral onloans could not exceed 15,000,000.00 Yuan. Relevant losses with the event concerned predicted amounting to 27,500,000.00 Yuan by the Group, the balance at the end of 2019 was 26,646,056.28 Yuan.
On November 12, 2020, Huidong Server and other related parties reached a preliminary settlement agreement onthe land disputes in the estimated liabilities. According to this, accrual liability of 6,584,816.78 Yuan was reversedby Shenzhen Server. In 2020, Shenzhen Server to bear the lawyer’s and other expenses in accordance with theagreed proportion, that is 137,731.22 Yuan, the accrual liability has 6,722,548.00 Yuan declined in total in thePeriod. Balance of 19,923,508.28 Yuan refers to the repayment obligations that are likely to occur before thecompletion of the above matters.
On November 12, 2020, Huizhou Commercial Construction and Development Corporation and Huidong Server
Harbor Comprehensive Development Company signed the "Creditor's Rights Assignment Agreement", and thereconciliation record was executed by the People's Court of Huidong County, which partially solved the issues ofownership and division of rights and interests of Yapojiao Wharf. On January 20, 2021, Shenzhen Server received5,000,000.00Yuan returned from the joint account. Accordingly, Shenzhen Server reverted its estimated liabilitiesof 4,573,508.28Yuan. In 2021, Shenzhen Serverbore the lawyer and other expenses of 350,000 Yuan for the issuesin accordance with the agreed proportion, the estimated liabilities totally reduced by 4,923,508.28 Yuan in currentperiod. The balance of 15,000,000.00 Yuan is a repayment obligation likely to occur before the completion of theabove matters.
(24) Deferred income
| Item | Balance at the end of last year | Current increased | Current Decreased | Ending balance | Reason |
| Government subsidy | 88,079,970.09 | 3,148,452.32 | 84,931,517.77 | ||
| Total | 88,079,970.09 | 3,148,452.32 | 84,931,517.77 |
Items with government subsidy involved:
| Liability | Balance at the end of last year | Subsidy amount newly increased in the current period | Amount included in current profit and loss | Other change | Ending Balance | Assets related/income related |
| Government subsidies for low-nitrogen equipment renovation | 24,104,286.46 | 286,402.74 | 23,817,883.72 | Assets related | ||
| Subsidies for the Motor Energy Efficiency Improvement Funding Scheme | 332,640.00 | 17,280.00 | 315,360.00 | Assets related | ||
| Support fund of recycling economy for sludge drying | 6,157,268.11 | 323,501.46 | 5,833,766.65 | Assets related | ||
| Treasury subsidies for sludge drying | 2,316,250.00 | 127,500.00 | 2,188,750.00 | Assets related | ||
| Special funds for energy conservation and emission reduction | 456,148.66 | 5,525.72 | 450,622.94 | Assets related | ||
| Subsidy for quality promotion of the air environment in Shenzhen | 54,061,987.96 | 2,365,909.08 | 51,696,078.88 | Assets related | ||
| 2021 Technical Transformation | 651,388.90 | 22,333.32 | 629,055.58 | Assets related |
Project
| Project | ||||||
| Total | 88,079,970.09 | 3,148,452.32 | - | 84,931,517.77 |
(25) Other non-current liabilities
| Item | Ending balance | Balance at the end of last year |
| Amounts payable to other shareholders | 50,310.78 | 50,310.78 |
| Total | 50,310.78 | 50,310.78 |
(26) Share capital
| Item | Balance at the end 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 | |||||
(27) Capital reserve
| Item | Balance at the end of last year | Current increased | Current Decreased | Ending 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 |
(28) Other comprehensive income
| Item | Balance at the end of last year | Balance at year-begin | Current period | Ending 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: written in other comprehensive income in previous period and carried forward to retained earnings 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 | |||||||||
| 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 | |||||||
| Total other comprehensive income | -2,500,000.00 | -2,500,000.00 | |||||||
(29) Surplus reserve
| Item | Balance at the end of last year | Current increased | Current Decreased | Ending 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 |
(30) Retained profit
| Item | Current amount | Last-period amount |
| Retained profit of last year before adjusted | 319,351,219.81 | 758,799,931.94 |
| Total retained profit adjusted (increased with +, decreased with -) | ||
| Retained profit at beginning of the year after adjusted | 319,351,219.81 | 758,799,931.94 |
| Add: net profit attributable to shareholders of parent company | -94,098,149.09 | 1,456,269.68 |
| Less: withdrawal of statutory surplus reserve | ||
| Common Stock dividend payable | ||
| Retained profit at period-end | 225,253,070.72 | 760,256,201.62 |
(31) Operating income and operating cost
| Item | Current amount | Last-period amount | ||
| Income | Cost | Income | Cost | |
| Main business | 228,639,162.83 | 282,392,283.22 | 376,034,393.36 | 351,092,415.61 |
| Other business | 604,379.24 | 94,148.99 | 568,000.02 | 117,808.30 |
| Total | 229,243,542.07 | 282,486,432.21 | 376,602,393.38 | 351,210,223.91 |
(32) Tax and surcharge
| Item | Current amount | Last-period amount |
| Property tax | 1,521,117.59 | 324,101.18 |
| Stamp duty | 335,629.10 | 266,520.80 |
| Environmental protection tax | 12,569.90 | 15,666.44 |
| Land holding tax | 452,503.02 | 150,379.56 |
Item
| Item | Current amount | Last-period amount |
| Urban maintenance and construction tax | 335,501.06 | 472,057.07 |
| Education surcharge | 142,789.14 | 250,372.97 |
| Local education surcharge | 96,152.80 | 166,915.38 |
| Total | 2,896,262.61 | 1,646,013.40 |
(33) Sales expense
| Item | Current amount | Last-period amount |
| Sludge treatment costs | 192,016.41 | |
| Salary, welfare and social insurance | 349,797.37 | |
| Communication expenses | 6,500.00 | |
| Social expenses | 47,432.90 | |
| Fleet cost | 7,000.00 | |
| Inspection charges | 2,358.49 | |
| Labor insurance fee | 9,137.32 | |
| Rental fee | 3,600.00 | |
| Property insurance | 48,684.42 | |
| Agency engagement fee | 6,152.26 | |
| Other | 23,757.63 | |
| Total | 696,436.80 |
(34) Administration expense
| Item | Current amount | Last-period amount |
| Wages | 20,381,559.27 | 16,794,177.76 |
| Rental fee | 3,046,301.79 | 3,313,168.39 |
| Social expenses | 913,815.31 | 1,256,510.86 |
| Agency fee | 697,476.86 | 674,252.82 |
| Fleet cost | 1,220,827.30 | 1,627,388.66 |
| Board charges | 313,528.29 | 549,111.22 |
| Depreciation | 3,949,187.75 | 3,487,075.49 |
| Amortization of intangible assets | 36,421.38 | 112,174.94 |
Item
| Item | Current amount | Last-period amount |
| Eco fee | 87,602.71 | 70,012.09 |
| Food expenses | 1,434,218.09 | 1,538,651.55 |
| Corporate culture fee | 184,358.80 | 145,089.00 |
| Property management fee | 493,842.17 | 485,464.34 |
| Office fee | 200,798.79 | 169,218.09 |
| Communication expenses | 521,423.22 | 551,184.44 |
| Business travel expenses | 53,447.95 | 189,323.48 |
| Fee for stock certificate | 238,083.50 | 238,018.32 |
| Union funds | 439,523.97 | 367,422.85 |
| Employee education expenses | 19,839.00 | 20,380.94 |
| Other | 9,545,388.53 | 8,425,543.31 |
| Total | 43,777,644.68 | 40,014,168.55 |
(35) R&D expenses
| Item | Current amount | Last-period amount |
| Employee's salary | 15,356,997.69 | 3,236,384.22 |
| Depreciation | 1,306,880.89 | 106,285.00 |
| Patent fee | 34,283.02 | 17,960.38 |
| Repair fee | 374,427.53 | |
| Total | 17,072,589.13 | 3,360,629.60 |
(36) Financial expense
| Item | Current amount | Last-period amount |
| Interest expenses | 20,539,845.79 | 13,028,372.76 |
| Less: capitalized interest | ||
| Expenses interest | 20,539,845.79 | 13,028,372.76 |
| Less: interest income | 3,594,848.74 | 10,344,030.33 |
| Exchange loss (gains is listed with ”-”) | -273,651.02 | 11,161.84 |
| Other | 58,370.08 | 139,530.44 |
| Total | 16,729,716.11 | 2,835,034.71 |
(37) Other income
| Item | Current amount | Last-period amount |
| Government subsidies | 4,440,645.78 | 3,368,979.50 |
| Total | 4,440,645.78 | 3,368,979.50 |
Government subsidies included in other income
| Item | Current amount | Last-period amount | Asset related / income related |
| Special fund subsidy of the improvement of Shenzhen air enviornment quality | 2,365,909.08 | 2,365,909.08 | Asset related |
| Subsidy for low-nitrogen transformation | 234,909.80 | 276,757.74 | Asset related |
| Support of the enterprise informatization construction | 25,490.12 | Asset related | |
| Subsidy for energy-saving technology renovation | 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 |
| 2021 Technical Transformation Subsidy | 22,333.32 | Asset related | |
| Personal tax handing fee refund | 243,753.86 | 175,522.44 | Income related |
| Job stabilization subsidy | 76,639.60 | Income related | |
| Funding subsidy of the industrial "carbon peaking" pilot demonstration | 200,000.00 | Income related | |
| Retained worker training subsidy | 128,000.00 | Income related | |
| Subsidy for the high-tech enterprise mltiplier support | 643,800.00 | Income related | |
| Total | 4,440,645.78 | 3,368,979.50 |
(38) Investment income
| Item | Current amount | Last-period amount |
| Long-term equity investment income by equity | -1,471,602.77 | -1,148,715.33 |
| Investment income during the holding period of Trading financial assets | 29,212,829.84 | 13,977,075.28 |
| Total | 27,741,227.07 | 12,828,359.95 |
(39) Income from disposal of assets
Item
| Item | Current amount | Last-period amount | Amount reckoned into non-recurring gains/losses of the Period |
| Profit and loss on disposal of fixed assets | 974,699.74 | ||
| Total | 974,699.74 |
(40) Non-operating revenue
| Item | Current amount | Last-period amount | Amount reckoned into non-recurring gains/losses of the Period |
| Reversal of accrual liabilities | 5,000,000.00 | ||
| Other | 261,868.55 | ||
| Total | 5,261,868.55 |
(41) 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 | 10,000.00 |
| Loss of scrap from non-current assets | 880.34 | 25,388.00 | 880.34 |
| Other | 217,615.51 | 217,615.51 | |
| Total | 228,495.85 | 35,388.00 | 228,495.85 |
(42) Earnings per share
1. Basic earnings per share
Basic earnings per share is calculated by dividing the consolidated net profit attributable toordinary shareholders of the parent company by the weighted average number of ordinary sharesissued by the company:
| Item | Current amount | Last-period amount |
| Consolidated net profit attributable to ordinary shareholders of the parent company | -94,098,149.09 | 1,456,269.68 |
| Weighted average number of common shares issued by the company | 602,762,596.00 | 602,762,596.00 |
| Basic earnings per share | -0.1561 | 0.0024 |
2. Diluted earnings per share
| Item | Current amount | Last-period amount |
| Consolidated net profit attributable to ordinary shareholders of the parent company (diluted) | -94,098,149.09 | 1,456,269.68 |
| Weighted average number of common shares issued by the company (diluted) | 602,762,596.00 | 602,762,596.00 |
| Diluted earnings per share | -0.1561 | 0.0024 |
(43) Cash flow statement
1. Cash received with other operating activities concerned
| Item | Current amount | Last-period amount |
| Interest income | 4,800,937.34 | 12,142,721.92 |
| Government subsidy | 1,048,439.60 | 679,508.93 |
| Intercourse funds | 38,142,088.17 | |
| Other | 1,502,291.50 | 3,055,829.97 |
| Total | 45,493,756.61 | 15,878,060.82 |
2. Other cash paid in relation to operation activities
3. Other cash received in relation to investment activities
| Item | Current amount | Last-period amount |
| Debt repayment received from Huidong Server | 5,000,000.00 | |
| Total | 5,000,000.00 |
(44) Supplementary information to statement of cash flow
1. Supplementary information to statement of cash flow
| Supplementary information | Current amount | Last-period amount |
Item
| Item | Current amount | Last-period amount |
| Fee payment | 21,958,179.33 | 24,840,140.78 |
| Other | 384,000.00 | 467,804.70 |
| Total | 22,342,179.33 | 25,307,945.48 |
Supplementary information
| Supplementary information | Current amount | Last-period amount |
| 1. Net profit adjusted to cash flow of operation activities | ||
| Net profit | -101,765,725.67 | -761,593.85 |
| Add: assets depreciation provision | ||
| Depreciation of fixed assets | 15,009,013.99 | 24,944,215.60 |
| Amortization of intangible assets | 344,440.86 | 420,194.42 |
| Amortization of long-term deferred expenses | 248,665.56 | -683,491.47 |
| Loss from disposing fixed assets, intangible assets and other long-term assets (income listed with “-“) | - | -974,699.74 |
| Loss on retirement of fixed assets (gain is listed with “-”) | 880.34 | 25,388.00 |
| Loss from changes of fair value (income listed with “-“) | ||
| Financial expense (gain listed with “-”) | 20,539,845.79 | 13,028,372.76 |
| Investment loss (gain listed with “-”) | -27,741,227.07 | -12,828,359.95 |
| Decrease of deferred income tax asset( (increase is listed with “-”) | 2,347,438.40 | -962,540.21 |
| Decrease of inventory (increase is listed with “-”) | 314,198,626.07 | -37,938,391.09 |
| Decrease of inventory (increase is listed with “-”) | -22,593,874.97 | 84,651,618.52 |
| Net cash flow arising from operating activities | 200,588,083.30 | 68,920,712.99 |
| 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: | ||
| Ending Balance of cash | 420,118,109.19 | 436,470,238.63 |
| Less: Opening Balance of cash | 456,751,614.75 | 397,101,272.21 |
| Add: Ending Balance of cash equivalent | 49,900,000.00 | 15,353,018.84 |
| Less: Opening Balance of cash equivalent | 232,853,018.84 | 367,500,000.00 |
| Net increasing of cash and cash equivalents | -219,586,524.40 | -312,778,014.74 |
2. Composition of cash and cash equivalent
| Item | Ending balance | Balance at the end of last year |
| I. Cash | 420,118,109.19 | 456,751,614.75 |
| Including: Cash on hand | 36,401.40 | 35,963.95 |
| Bank savings available for payment needed | 420,081,707.79 | 456,715,650.80 |
Item
| Item | Ending balance | Balance at the end of last year |
| Other monetary capital available for payment needed | ||
| II. Cash equivalent | 49,900,000.00 | 232,853,018.84 |
| including: bond investment due within three months | ||
| III. Balance of cash and cash equivalent at period-end | 470,018,109.19 | 689,604,633.59 |
| Including: Cash and cash equivalent of the parent company or subsidiaries with use restricted |
(45) Assets of ownership or use right restricted
No assets of ownership or use right restricted in the period.
(46) 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 | 834,327.52 | 6.71140 | 5,599,505.72 |
| Euro | 1,017.87 | 7.00840 | 7,133.64 |
| HKD | 323,613.10 | 0.85519 | 276,750.69 |
| SGD | 4,078.03 | 4.81700 | 19,643.87 |
(47) 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 gain/loss or loss resulting from related costs off-setting | ||
| Current amount | Last-period amount | |||||
| Subsidy for low-nitrogen transformation | 43,032,780.00 | Deferred income | 234,909.80 | 276,757.74 | Other income | |
| of informatization construction | 520,000.00 | Deferred income | 25,490.12 | Other income | ||
| Support fund of recycling economy for sludge drying | 11,750,000.00 | Deferred income | 323,501.46 | 323,501.46 | Other income | |
| Treasury subsidies for sludge drying | 5,100,000.00 | Deferred income | 127,500.00 | 127,500.00 | Other income | |
| Special funds for energy conservation and | 1,530,000.00 | Deferred income | 57,018.66 | 57,018.66 | Other income | |
Type
| 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 gain/loss or loss resulting from related costs off-setting | |
| Current amount | Last-period amount | ||||
| emission reduction | |||||
| Motor engery efficiency improment subsidy | 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 | 2,365,909.08 | Other income |
| 2021 Technical Transformation Project | 670,000.00 | Deferred income | 22,333.32 | Other income | |
| Total | 134,098,453.00 | 3,148,452.32 | 3,193,457.06 | ||
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-period amount | |||
| VAT refund | 243,753.86 | 243,753.86 | 175,522.44 | Other income |
| Job stabilization subsidy | 76,639.60 | 76,639.60 | Other income | |
| Funding subsidy of the industrial "carbon peaking" pilot demonstration | 200,000.00 | 200,000.00 | Other income | |
| Retained worker training subsidy | 128,000.00 | 128,000.00 | Other income | |
| Subsidy for the high-tech enterprise mltiplier support | 643,800.00 | 643,800.00 | Other income | |
| Total | 1,292,193.46 | 1,292,193.46 | 175,522.44 | |
VI. Change of consolidate scopeNo change in the company included in the consolidated statement scope during the reportingperiod.
VII. Equity in other entity
(1) Equity in subsidiaries
1. Composition of the Group
| Subsidiary | Main | Shareholding ratio (%) | Acquired way |
operationplace
| operation place | Directly | Indirectly | ||
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | Zhongshan | 55.00 | 25.00 | Establishment |
| Shenzhen Shennandian Turbine Engineering Technology Co., Ltd | Shenzhen | 60.00 | 40.00 | Establishment |
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | Shenzhen | 70.00 | 30.00 | Establishment |
| Shenzhen Server Petrochemical Supplying Co., Ltd | Shenzhen | 50.00 | Establishment | |
| Shenzhen New Power Industrial Co., Ltd. | Shenzhen | 75.00 | 25.00 | Establishment |
| Shen Nan Energy (Singapore) Co., Ltd. | Singapore | 100.00 | Establishment | |
| Hong Kong Syndisome Co., Ltd. | Hong Kong | 100.00 | Establishment | |
| Zhongshan Shennandian Storage Co., Ltd. | Zhongshan | 80.00 | Establishment | |
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | Zhuhai | 99.96 | Establishment |
2. Important non-wholly-owned subsidiary
| Subsidiary | Share-holding ratio of minority (%) | Gains/losses attributable to minority in the Period | Ending equity of minority |
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | 20.00 | -6,064,893.02 | -83,945,737.14 |
3. Main finance of the important non-wholly-owned subsidiary
| Subsidiary | Ending Balance /Yuan | Balance at the end of last year/Yuan | ||||||||||
| 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 | |
| Shennandian (Zhongshan) Power Co., Ltd. (“Zhongshan Power”) | 40,743,627.77 | 227,044,495.17 | 267,788,122.94 | 682,313,062.17 | 5,203,746.48 | 687,516,808.65 | 32,544,636.55 | 231,154,252.88 | 263,698,889.43 | 647,836,819.17 | 5,266,290.86 | 653,103,110.03 |
| Subsidiary | Current amount/Yuan | Last-period amount/Yuan | ||||||
| Operation Income | Net profit | Total comprehensive income | Cash flow from operation activity | Operation Income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Shennandian (Zhongshan) Power Co., Ltd. (“Zhongshan Power”) | 16,508,874.54 | -30,324,465.11 | -30,324,465.11 | -53,373,996.76 | 70,054,400.77 | -18,254,913.13 | -18,254,913.13 | -3,240,430.86 |
财务报表附注第133页
(2) Equity in joint venture and cooperative enterprise
1. Major joint venture and cooperative enterprise
| Name of joint venture or cooperative enterprise | Main operation place | Main business activities | Share-holding ratio（%） | Accounting treatment on investment for joint venture and cooperative enterprise | |
| Directly | Indirectly | ||||
| Huidong Server Harbor Comprehensive Development Company | Renshan Town, Huidong County | Wharf operation | 40.00 | Equity method | |
2. Main financial information of significant joint ventures or associates
| Ending balance /Current amount | Opening Balance/Last-period amount | |
| Total book value of investment | 5,515,052.42 | 6,986,655.19 |
| Total numbers measured by share-holding ratio | ||
| Net profit | -1,471,602.77 | -1,148,715.33 |
| Other comprehensive income | ||
| Total comprehensive income | -1,471,602.77 | -1,148,715.33 |
VIII. Risks relating to financial instrumentsThe Company's main financial instruments include equity investment, notes receivable, long-termand short-term loans, accounts receivable, accounts payable, other payable, etc., see details of eachfinancial instrument in related items of this annotation III (10). The risks associated with thesefinancial instruments and the risk management policies adopted by the Company to reduce theserisks are described as below. The management of the Company manages and monitors these riskexposures to ensure that the above risks are controlled within the limit range.The Company uses the sensitivity analysis technique to analyze the possible impact of the riskvariable on the current profit and loss or the shareholders' equity. Since any risk variable rarelychanges in isolation, and the correlation existing among the variables shall have a significanteffect on the final amount of changes about a certain risk variable, therefore, the followingproceeds by assuming that the change in each variable is independent.
(1) Credit risk
Credit risk refers to the risk that one party to a financial instrument fails to perform its obligations,
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causing the other party to suffer financial losses. The Company is mainly faced with customercredit risk caused by credit sales. Before signing a new contract, the Company will evaluate thecredit risk of the new customer, including the external credit rating and, in some cases, the bankcredit certificate (when this information is available). The company has set a credit limit for eachcustomer, which is the maximum amount without additional approval.The company ensures that the company's overall credit risk is within a controllable range throughquarterly monitoring of existing customer credit ratings and monthly review of accountsreceivable aging analysis. When monitoring the credit risk of customers, they are groupedaccording to their credit characteristics. Customers rated as "high risk" will be placed on therestricted customer list, and only with additional approval, the company can sell them on credit inthe future, otherwise they must be required to pay the corresponding amount in advance.
(2) Market risk
Market 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 ismainly related to the floating interest rate bank loans.
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.As of 30 June 2022, interest on bank loans at floating interest rate totalled 3,772,950.38 Yuan.Based on the above assumptions and with other variables unchanged, the pre-tax impact of a 5%changes in interest rate on current gain/loss 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 | -188,647.52 | -188,647.52 | -651,409.17 | -643,610.18 |
| 5% decreased | 188,647.52 | 188,647.52 | 651,409.17 | 643,610.18 |
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(2) FX risks
Foreign exchange risk refers to the risk of losses due to exchange rate changes. The Company’sforeign exchange risk is mainly related to the US dollar. On 30 June 2022, except for the balanceof foreign currency monetary items of (46), foreign currency monetary in Note V, the assets andliabilities of the Company are RMB balance. The foreign exchange risk arising from the assets andliabilities of such foreign currency balances may have an impact on the Company's operatingresults.
(3) Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation ofsettlement by means of cash or other financial assets. The Company's policy is to ensure that it hassufficient cash to repay the debts due. Liquidity risk is centrally controlled by the Company'sfinancial department. The financial department monitors cash balances, marketable securities thatcan be cashed at any time, and rolling forecasts of cash flows in the next 12 months to ensure thatthe company has sufficient funds to repay debts under all reasonable forecasts.
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 forma holding relationship of the Company through any methods. The Company has no parentcompany.
(2) Subsidiaries of the Company
See details in Note VII. (1) Equity in other entity
(3) Joint venture and affiliated enterprise of the Group
See details in Note VII. (2) Interest in joint venture arrangements or associates
(4) Other related party
| Other related party | Relationship with the Company |
| Shenzhen Energy Group Co., Ltd. | Legal person holding more than 5% of the company's shares |
| Shenzhen Guangju Industrial Co., Ltd. | Legal person holding more than 5% of the company's shares |
| HONG KONG NAM HOI (INTERNATIONAL) LTD. | Legal person holding more than 5% of the company's shares |
| Shenzhen Capital Holdings Co., Ltd. | Legal person indirectly holding more than 5% of the company's shares through Shenzhen Energy |
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Other related party
| Other related party | Relationship with the Company |
| Group | |
| Directors, supervisors and senior management of the company | Key managers |
(5) Receivable/payable items of related parties
1. Receivable
| Item | Related party | Ending book balance | Book balance at last year-end |
| Other account receivable | |||
| Huidong Server | 14,911,484.45 | 14,740,501.44 | |
| Huidong Server managed account | 1,049,939.12 | 1,014,945.19 | |
| Total | 15,961,423.57 | 15,755,446.63 |
X. Commitment and Contingency
(1) Major Commitment
As of 30 June 2022, the company has no commitments that need to be disclosed.
(2) Contingency
As of 30 June 2022, the company has no commitments that need to be disclosed.
XI. Events Occurring after the Balance Sheet DateAs of the date of this report, the company has no contingencies that need to be disclosed.
XII. Other important matters
(1) Segment information
1. Determining basis and accounting policies of the report divisions
According to the Company’s internal organizational structure, management requirements andinternal reporting system, the Company’s operating business is divided into three businessdivisions, i.e. power supply and heating, fuel trading, and other businesses. The Company’smanagement regularly evaluates the business performance of these divisions in order to determinethe allocation of resources and evaluate the performance.Divisional reporting information is disclosed in accordance with the accounting policies andmeasurement standards adopted when each division reports to the management. These
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measurement bases are consistent with the accounting and measurement bases used whenpreparing financial statements.
2. Financial information of the reportable segment
| Item | Power supply & heating | Fuel trading | Other | Fuel trading | Total |
| Operation income | 238,367,006.93 | 546,857.12 | 22,925,068.56 | 32,595,390.54 | 229,243,542.07 |
| Operation cost | 301,428,093.71 | 91,318.80 | 13,594,750.26 | 32,627,730.56 | 282,486,432.21 |
| Total assets | 4,452,246,223.67 | 97,796,694.06 | 378,762,612.38 | 1,930,286,193.70 | 2,998,519,336.41 |
| Total liabilities | 3,054,510,678.87 | 17,526,333.90 | 48,864,982.05 | 1,598,958,848.18 | 1,521,943,146.64 |
XIII. Note to main items of financial statements of the Company
(1) Account receivable
1. Age analysis
| Account age | Ending balance | Balance at the end of last year |
| Within one year | 71,242,570.68 | 35,966,056.15 |
| Over 3 years | ||
| Subtotal | 71,242,570.68 | 35,966,056.15 |
| Less: Bad debt provision | ||
| Total | 71,242,570.68 | 35,966,056.15 |
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 | |||||
| Provision for bad debts by combination of risk characteristics | 71,242,570.68 | 100.00 | 71,242,570.68 | ||
| Including: risk-free portfolio | 71,242,570.68 | 100.00 | 71,242,570.68 | ||
| Total | 71,242,570.68 | 100.00 | 71,242,570.68 | ||
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| Category | Balance at the end of last year | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| With single provision for bad debts | |||||
| Provision for bad debts by combination of risk characteristics | 35,966,056.15 | 100.00 | 35,966,056.15 | ||
| Including: risk-free portfolio | 35,966,056.15 | 100.00 | 35,966,056.15 | ||
| Total | 35,966,056.15 | 100.00 | 35,966,056.15 | ||
Provision for bad debts by portfolio:
| Name | Ending balance | ||
| Account receivable | Bad debt provision | Accrual proportion (%) | |
| Grid accounts receivable | 71,242,570.68 | ||
| Total | 71,242,570.68 | ||
3. Top 5 receivables at ending balance by arrears party
Total period-end balance of top five receivables by arrears party amounting to 71,242,570.68Yuan, takes 100.00% of the total account receivable at period-end, bad debt provision accrualcorrespondingly at period-end amounting as 0.00 Yuan
(2) Other account receivable
| Item | Ending balance | Balance at the end of last year |
| Interest receivable | ||
| Dividends receivable | ||
| Other account receivable | 560,100,745.56 | 618,436,063.60 |
| Total | 560,100,745.56 | 618,436,063.60 |
1. Other account receivable
(1)Age analysis
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Account age
| Account age | Ending balance | Balance at the end of last year |
| Within one year | 207,443,387.57 | 98,550,452.19 |
| 1-2 years | 26,562,799.10 | 64,095.20 |
| 2-3 years | 21,857,481.00 | 35,844,839.81 |
| Over 3 years | 331,566,721.33 | 511,306,319.84 |
| Subtotal | 587,430,389.00 | 645,765,707.04 |
| Less: Bad debt provision | 27,329,643.44 | 27,329,643.44 |
| Total | 560,100,745.56 | 618,436,063.60 |
(2) By category
| Category | Ending balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| With single provision for bad debts | 27,965,421.75 | 4.76 | 27,329,643.44 | 97.73 | 635,778.31 |
| Provision for bad debts by combination of risk characteristics | 559,464,967.25 | 95.24 | - | 559,464,967.25 | |
| Including: risk-free portfolio | 559,464,967.25 | 95.24 | 559,464,967.25 | ||
| Total | 587,430,389.00 | 100.00 | 27,329,643.44 | 4.65 | 560,100,745.56 |
| Category | Balance at the end of last year | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| With single provision for bad debts | 27,965,391.68 | 4.33 | 27,329,643.44 | 97.73 | 635,748.24 |
| Provision for bad debts by combination of risk characteristics | 617,800,315.36 | 95.67 | 617,800,315.36 | ||
| Including: risk-free | 617,800,315.36 | 95.67 | 617,800,315.36 | ||
财务报表附注第140页Category
| Category | Balance at the end of last year | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| portfolio | |||||
| Total | 645,765,707.04 | 100.00 | 27,329,643.44 | 4.23 | 618,436,063.60 |
With single provision for bad debts：
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual proportion (%) | Causes | |
| Individual income tax | 2,470,039.76 | 2,470,039.76 | 100.00 | Unable to recover |
| Dormitory amount receivable | 2,083,698.16 | 1,736,004.16 | 83.31 | Unable to recover |
| Huiyang Kangtai Industrial Company | 14,311,626.70 | 14,311,626.70 | 100.00 | Unable to recover |
| Beneficiary fund dividends (personal receivables) | 7,498,997.87 | 7,498,997.87 | 100.00 | Unable to recover |
| Deposit receivable | 1,601,059.26 | 1,312,974.95 | 82.01 | Unable to recover |
| Total | 27,965,421.75 | 27,329,643.44 | 97.73 | |
(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 | ||
| Balance at year-begin of the period | ||||
| ——Turn to phase II | ||||
| ——Turn to phase III | ||||
| ——Return to Phase II | ||||
| ——Return to Phase I | ||||
| Current accrual | ||||
| Current switch back |
财务报表附注第141页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) | ||
| Rewrite in the period | ||||
| Write-off in the period | ||||
| Other changes | ||||
| Ending balance | 27,329,643.44 | 27,329,643.44 |
(5) By nature
| Nature | Ending book balance | Book balance at last year-end |
| Related party transactions | 557,692,420.65 | 616,401,741.49 |
| Dormitory receivable | 2,083,698.16 | 2,083,698.16 |
| Deposit receivable | 1,601,059.26 | 1,750,498.58 |
| Personal money | 8,931,302.60 | 8,567,330.57 |
| Other | 17,121,908.33 | 16,962,438.24 |
| Subtotal | 587,430,389.00 | 645,765,707.04 |
| Less: Bad debt provision | 27,329,643.44 | 27,329,643.44 |
| Total | 560,100,745.56 | 618,436,063.60 |
(3) Long-term equity investment
| Item | Ending balance | Balance at the end of last year | ||||
| Book balance | Depreciation provision | Book value | Book balance | Depreciation provision | Book value | |
| Investment in subsidiary | 716,893,717.00 | 429,592,447.19 | 287,301,269.81 | 716,893,717.00 | 429,592,447.19 | 287,301,269.81 |
| Total | 716,893,717.00 | 429,592,447.19 | 287,301,269.81 | 716,893,717.00 | 429,592,447.19 | 287,301,269.81 |
1. Investment to subsidiary
| The invested entity | Balance at the end of last year | Current increased | Current Decreased | Ending balance | Impairment provision accrual in the Period | Period-end balance of depreciation reserves |
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The investedentity
| The invested entity | Balance at the end of last year | Current increased | Current Decreased | Ending balance | Impairment provision accrual in the Period | Period-end balance of depreciation reserves |
| Shenzhen Xiefu Oil Supply Company | 26,650,000.00 | 26,650,000.00 | ||||
| Shennan Energy Singapore Company | 6,703,800.00 | 6,703,800.00 | ||||
| Shenzhen New Power Industrial Co., Ltd. | 71,270,000.00 | 71,270,000.00 | ||||
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | 410,740,000.00 | 410,740,000.00 | 410,740,000.00 | |||
| Shenzhen Shennandian Turbine Engineering Technology Co., Ltd | 6,000,000.00 | 6,000,000.00 | ||||
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | 55,300,000.00 | 55,300,000.00 | 18,852,447.19 | |||
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | 140,229,917.00 | 140,229,917.00 | ||||
| Total | 716,893,717.00 | 716,893,717.00 | 429,592,447.19 |
(4) Operation revenue and operation cost
| Item | Current amount | Last-period amount | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 96,445,440.00 | 153,240,868.95 | 149,153,876.16 | 170,891,694.03 |
| Other business | 32,628,912.66 | 2,830.19 | 35,777,286.09 | 491,345.55 |
| Total | 129,074,352.66 | 153,243,699.14 | 184,931,162.25 | 171,383,039.58 |
(5) Investment income
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Item
| Item | Current amount | Last-period amount |
| Investment income from trading financial assets during the holding period | 28,915,295.59 | 13,977,075.28 |
| Total | 28,915,295.59 | 13,977,075.28 |
XIV. Supplementary information
(1) Statement of non-recurring gains/losses
| Item | Amount | Note |
| Gains and losses from disposal of non-current assets | ||
| 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 | 4,440,645.78 | |
| 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 | ||
| 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 Trading financial assets and tradable financial liabilities, and investment income from disposal of Trading financial assets, tradable financial liabilities and financial assets available for sale | 29,212,829.84 | |
| 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 |
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Item
| Item | Amount | Note |
| Other non-operating income and expenditure except for the aforementioned items | -228,495.85 | |
| Other gains and losses items complying with definition for non-recurring gains and losses | ||
| Subtotal | 33,424,979.77 | |
| Less: impact on income tax | ||
| Less: impact on minority equity | 17,574.38 | |
| Total | 33,407,405.39 |
(2) ROE and EPS
| Profit in the Period | Weighted average ROE (%)） | EPS (Yuan) | |
| Basic EPS | Diluted EPS | ||
| Net profit attributable to shareholders of the listed company | -6.00% | -0.1561 | -0.1561 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | -8.13% | -0.2115 | -0.2115 |