Ticker: 000037, 200037 Stock name: Shenzhen Nanshan Power A, Shenzhen Nanshan Power B Announcement No.: 2024-019
Shenzhen Nanshan Power Co., Ltd.
2023 Annual Report
April 2024
2023 Annual ReportSection I Important, contents and definitions
The Board of Directors, the Board of Supervisors, directors, supervisors and senior officers guaranteethat the contents of the annual report are true, accurate and complete, without any false records,misleading statements or major omissions, and shall bear individual and joint legal liability.Kong Guoliang, the Principal, Chen Yuhui, the Chief Accountant, Zhang Xiaoyin, the Chief FinancialOfficer, and Lin Xiaojia, Head of the Finance Department (Finance Head), guarantee that the financialreports in the annual report are true, accurate and complete.Except for the following directors, all other directors attended in person the meeting of the Board ofDirectors to review this annual report
| Name of director who was not present in person | Position of director who was not present in person | Reasons for not attending the meeting in person | Name of the person entrusted |
| Sun Huirong | Director | Work related reasons | Huang Qing |
| Huang Xiqin | Independent director | Work related reasons | Du Wei |
| Chen Zetong | Independent director | Work related reasons | Du Wei |
The Company plans not to distribute cash dividends, give away bonus shares, or increase share capital bycapital reserves.If there are forward-looking statements in the annual report involving the company's future developmentstrategy, business plans, etc., they do not constitute the Company's substantive commitment to investors.Investors are advised to maintain adequate risk awareness and understand the differences between plans,forecasts and commitments, and pay attention to investment risks.The annual report is prepared in Chinese and English respectively. If there is any ambiguity in theunderstanding of the two texts, the Chinese text shall prevail. Investors are requested to read the full textof the annual report carefully.
Table of contents
Section I Important, contents and definitions ...... 2
Section II Company profile and key financial indicators ...... 6
Section III Management discussion and analysis ...... 12
Section IV Corporate governance ...... 48
Section V Environmental and social responsibilities ...... 78
Section VI Important matters ...... 82
Section VII Changes in shares and shareholders ...... 89
Section VIII Preferred shares ...... 98
Section IX Bonds ...... 99
Section X Financial report ...... 100
List of documents for inspectionI. The original 2023 annual report signed by the Company's legal representatives.II. Financial statements signed and stamped by the Company's Principal, Chief Accountant, Chief FinancialOfficer and Head of the Finance Department (Finance Head).III. The original audit report stamped by the accounting firm and signed and stamped by the certified publicaccountant.IV. All the Company's original documents and announcements publicly disclosed in designated media duringthe reporting period.V. Location for inspection: the office of Board of Directors of the Company.
Interpretation
| Item | Refer to | Content |
| Company, the Company, Shenzhen Nanshan Power and listed company | Refer to | Shenzhen Nanshan Power Co., Ltd. |
| CSRC | Refer to | China Securities Regulatory Commission |
| Shenzhen State-owned Assets Supervision and Administration Commission | Refer to | State-owned Assets Supervision and Administration Commission of Shenzhen People's Government |
| Shenzhen Nanshan Power Zhongshan Company | Refer to | Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. |
| Shenzhen Nanshan Power Engineering Company | Refer to | Shenzhen Nanshan Power Gas Turbine Engineering Technology (Shenzhen) Co., Ltd. |
| Shenzhen Nanshan Power Environmental Protection Company | Refer to | Shenzhen Nanshan Power Environmental Protection (Shenzhen) Co., Ltd. |
| Xiefu Company | Refer to | Shenzhen Xiefu Energy Co., Ltd. |
| New Power Company | Refer to | Shenzhen New Power Industrial Co., Ltd. |
| Nanshan Power Plant | Refer to | Shenzhen Nanshan Power Co., Ltd. Nanshan Power Plant |
| Zhongshan Nanlang Power Plant | Refer to | Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. Zhongshan Nanlang Power Plant |
| Company Law | Refer to | Company Law of the People's Republic of China |
| Securities Law | Refer to | Securities Law of the People's Republic of China |
| Stock Listing Rules | Refer to | Rules Governing the Listing of Stocks on Shenzhen Stock Exchange |
| Articles of Association | Refer to | Articles of Association of Shenzhen Nanshan Power Co., Ltd. |
| RMB, RMB 10,000, RMB 100,000,000 | Refer to | Except for the specially described currency units, the remaining currency units are RMB, RMB 10,000, and RMB 100,000,000 |
| Reporting period | Refer to | January 1, 2023 to December 31, 2023 |
Section II Company profile and key financial indicatorsI. Company information
| Stock name | 000037、200037 | Ticker | Shenzhen Nanshan Power A, Shenzhen Nanshan Power B |
| Stock exchange | Shenzhen Stock Exchange | ||
| Name in Chinese | 深圳南山热电股份有限公司 | ||
| Abbreviation in Chinese | 深南电 | ||
| Name in English (if any) | Shenzhen Nanshan Power Co., Ltd. | ||
| Registered address | No. 2097, Yueliangwan Avenue, Nanshan District, Shenzhen, Guangdong Province | ||
| Postal code of registered address | 518054 | ||
| Historical changes of registered address | None | ||
| Office address | 16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, Guangdong Province | ||
| Postal code of office address | 518053 | ||
| Website | http://www.nsrd.com.cn | ||
| public@nspower.com.cn; investor@nspower.com.cn | |||
II. Contact person and contact details
| Secretary of the Board of Directors | Securities representative | |
| Name | Zou Yi | |
| Contact address | 16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, Guangdong Province | |
| Tel. | 0755-26003611 | |
| Fax | 0755-26003684 | |
| investor@nspower.com.cn |
III. Information disclosure and preparation location
| The stock exchange website where the Company discloses its annual report | Shenzhen Stock Exchange: http://www.szse.cn/ |
| Name and website of the media where the Company discloses its annual report | Securities Times: http://www.stcn.com/, CNINFO: http://www.cninfo.com.cn/ |
| Preparation location of annual report | Office of the Board of Directors, 17/F, Hantang Building, OCT, Nanshan District, Shenzhen, Guangdong Province |
IV. Changes in registration
| Unified social credit code | 91440300618815121H |
| Changes in the Company's main business since its listing (if any) | None |
| Previous changes in controlling shareholders (if any) | No controlling shareholder |
V. Other relevant informationThe accounting firm hired by the Company
| Name of the accounting firm | Lixinzhonglian CPAS (Special General Partnership) |
| Office address | 1-1-2205-1, North District, Financial and Trade Center, No. 6865 Yazhou Road, Tianjin Pilot Free Trade Zone (Dongjiang Bonded Port Zone) |
| Name of signatory accountant | Cao Wei and Zou Yang |
The sponsor institution hired by the Company to perform continuous supervision responsibilities during thereporting period
□Applicable ? Not applicable
Financial consultant hired by the Company to perform continuous supervision duties during the reporting period
□Applicable ? Not applicable
VI. Key accounting data and financial indicatorsWhether the Company need to retroactively adjust or restate the previous accounting data
□Yes ? No
| 2023 | 2022 | Change compared with the previous year | 2021 | |
| Operating revenue (RMB) | 589,780,190.71 | 694,227,657.28 | -15.05% | 757,175,743.41 |
| Net profit attributable to shareholders of listed companies (RMB) | 4,158,797.10 | -160,163,240.67 | 102.60% | -439,448,712.13 |
| Net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses (RMB) | -70,789,007.91 | -225,967,573.71 | 68.67% | -514,142,213.75 |
| Net cash flows generated from operating activities | -100,371,976.92 | 207,168,402.26 | -148.45% | -39,258,302.07 |
| (RMB) | ||||
| Basic earnings per share (RMB/share) | 0.0069 | -0.2657 | 102.60% | -0.7291 |
| Diluted earnings per share (RMB/share) | 0.0069 | -0.2657 | 102.60% | -0.7291 |
| Weighted average rate of return on net assets | 0.29% | -10.43% | +10.72 percentage points | -23.95% |
| End of 2023 | End of 2022 | Change compared with the end of the previous year | End of 2021 | |
| Total assets (RMB) | 2,049,365,388.69 | 2,606,216,345.99 | -21.37% | 2,790,002,824.41 |
| Net assets attributable to shareholders of listed companies (RMB) | 1,459,288,691.94 | 1,455,129,894.84 | 0.29% | 1,615,293,135.51 |
The Company's net profit before and after deducting non-recurring gains and losses in the past three fiscal years,whichever is lower, is negative; meanwhile, the audit report for the most recent year shows that there isuncertainty in the Company's going-concern ability
□Yes ? No
The lower of net profit before and after deducting non-recurring profit or loss is negative?Yes □ No
| Item | 2023 | 2022 | Remark |
| Operating revenue (RMB) | 589,780,190.71 | 694,227,657.28 | Mainly received from power production and sale and revenue from integrated energy services |
| Amount after deduction of operating revenue (RMB) | 1,409,620.51 | 1,611,967.02 | Mainly received from house lease revenue |
| Amount after deduction of operating revenue (RMB) | 588,370,570.20 | 692,615,690.26 | Operating revenue after deduction of house rent |
VII. Differences in accounting data under domestic and foreign accounting standards
1. Differences in net profit and net assets in financial reports disclosed in accordance with bothinternational and Chinese accounting standards
□Applicable ? Not applicable
There was no difference between net profit and net assets in the financial reports disclosed in accordance with
both international and Chinese accounting standards during the reporting period of the Company.
2. Differences in net profit and net assets in financial reports disclosed in accordance with bothinternational and Chinese accounting standards
□Applicable ? Not applicable
There was no difference between net profit and net assets in the financial reports disclosed in accordance withboth international and Chinese accounting standards during the reporting period of the Company.VIII. Key financial indicators by quarter
Unit: RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operating revenue | 111,067,616.64 | 160,200,568.41 | 182,838,205.80 | 135,673,799.86 |
| Net profit attributable to shareholders of listed companies | -31,147,959.30 | -6,092,780.26 | 8,482,149.79 | 32,917,386.87 |
| Net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses | -41,178,992.24 | -13,698,338.39 | 2,109,131.54 | -18,020,808.82 |
| Net cash flows from operating activities | -36,865,225.55 | -20,151,263.99 | -62,363,198.51 | 19,007,711.13 |
Whether there are significant differences between the above financial indicators or their totals and the relevantfinancial indicators disclosed by the Company in quarterly reports and semi-annual reports or not
□Yes ? No
IX. Non-recurring profit or loss and amounts?Applicable □ Not applicable
Unit: RMB
| Item | Amount in 2023 | Amount in 2022 | Amount in 2021 | Remark |
| Profit or loss on disposal of non-current assets (including the write-off of provision for asset impairment) | 1,878,391.11 | -1,171,953.71 | 974,699.74 | Mainly due to the impact of profit or loss on the disposal of various non-current assets |
| Government | 44,431,212.00 | 9,333,093.72 | 23,396,336.60 | Mainly government |
| subsidies included in current profit or loss (except those that are closely related to the Company's normal business, in line with national policy regulations and in accordance with defined criteria, and have a lasting impact on the Company's profit or loss) | subsidies related to income and apportionment of government subsidies related to assets, etc. | |||
| Profit or loss from changes in fair value of financial assets and liabilities held by non-financial enterprises and profit or loss from the disposal of financial assets and liabilities, except for effective hedging operations related to the Company's normal business operations | 18,538,064.54 | 58,227,971.21 | 47,887,839.11 | Mainly investment income received from financial assets held for trading |
| Profit or loss arising from contingencies unrelated to the Company's normal business operations | 0.00 | 0.00 | 5,000,000.00 | |
| Reversal of provision for impairment of receivables individually tested for impairment | 1,235,154.68 | 0.00 | 0.00 | Mainly due to the reversal of the provision for bad debts made was that the lease deposits were expected to be recovered upon surrender of the leases. |
| Other non-operating revenue and expenses other than those mentioned above | 11,628,630.83 | -635,065.42 | 13,652.99 |
Mainly due to thereceipt of thecompensation forpower outage byShenzhen NanshanPower ZhongshanCompany andNanshan PowerPlant this year.
| Less: income tax impact | 0.00 | 0.00 | 0.00 | |
| Changes in the amount of minority interests (after tax) | 2,763,648.15 | -50,287.24 | 2,579,026.82 | |
| Total | 74,947,805.01 | 65,804,333.04 | 74,693,501.62 |
Details of other profit or loss that meet the definition of non-recurring gains and losses:
?Applicable ? Not applicableThe Company has no other specific circumstances of profit or loss that meet the definition of non-recurringgains and losses.Explanation on defining non-recurring profit or loss listed in the Explanatory Announcement No. 1 onInformation Disclosure of Companies that Offer Securities to the Public - Non-recurring Gains and Losses asrecurring profit or loss.
□Applicable ? Not applicable
The company does not define non-recurring profit or loss listed in the Explanation on defining non-recurringprofit or loss listed in the Explanatory Announcement No. 1 on Information Disclosure of Companies that OfferSecurities to the Public - Non-recurring Gains and Losses as recurring profit or loss.
Section III Management discussion and analysisI. Industry status of the Company during the reporting periodThe Company shall comply with the disclosure requirements for power supply industry in the Shenzhen StockExchange Listed Company Self-Regulatory Guidelines No. 3 - Industry Information DisclosureAccording to the 2023-2024 Analysis and Forecast Report of National Power Supply and Demand released bythe China Electricity Council, in 2023, the nation's total social electricity consumption was 9.22 trillion KWH,with per capita electricity consumption of 6,539 KWH; the electricity consumption of the whole societyincreased by 6.7% YoY, with a growth rate of 3.1 percentage points higher than 2022. The rebound of thenational economy has driven the growth rate of electricity consumption to increase YoY. In each quarter, theelectricity consumption of the whole society increased by 3.6%, 6.4%, 6.6% and 10.0% YoY respectively, withthe YoY growth rate increasing quarter by quarter; affected by factors such as the low base in the same periodof 2022 and economic recovery, the YoY growth rate of electricity consumption in the entire society increasedsignificantly in the fourth quarter. The two-year average growth rate in the fourth quarter was 6.8%, which wasclose to the two-year average growth rate in the third quarter. In terms of industries, first, the electricityconsumption of the primary industry continued to grow rapidly. In 2023, the electricity consumption of theprimary sector was 127.8 billion KWH, a year-on-year increase of 11.5%; second, the growth rate of electricityconsumption in the secondary sector increased quarter by quarter. In 2023, the secondary sector consumed 6.07trillion KWH of electricity, a year-on-year increase of 6.5%; third, electricity consumption in the tertiary sectorresumed rapid growth. In 2023, the electricity consumption of the tertiary sector was 1.67 trillion KWH, a year-on-year increase of 12.2%. Fourth, the electricity consumption of urban and rural residents increased at a slowrate. In 2023, urban and rural residents' domestic electricity consumption was 1.35 trillion KWH, a year-on-yearincrease of 0.9%. The high base of the previous year is an important reason for the low growth of residents'domestic electricity consumption in 2023. Electricity consumption in 31 provinces across the country allshowed positive growth, with the western region leading the way.As of the end of 2023, the installed capacity of power generation in China was 2.92 billion KW, a year-on-yearincrease of 13.9%; Since the per capita installed capacity of power generation historically exceeded 1 kW at theend of 2014, it historically exceeded 2 kW for the first time in 2023, reaching 2.1 kW. The installed capacity ofnon-fossil energy power generation exceeded thermal power for the first time in 2023, accounting for more than50% of total installed capacity for the first time in 2023, while the installed capacity of coal power droppedbelow 40% for the first time. Judging from investment by type, growth rate of power generation capacity andstructural changes, the trend of green and low-carbon transformation in power industry continued to advance. In2023, the power system operated safely and stably, with the overall balance of power supply and demand inChina and good results in ensuring power supply.According to the Southern (Starting from Guangdong) Spot Power Market 2024 Annual Report, the maximumregulated load in Guangdong Province in 2023 was 145 million KW (July 27), a year-on-year increase of 2.1%;the regulated power generation and reception was 820.8 billion KWH, a year-on-year increase of 7.8%. Themaximum west-to-east power transmission was 42,220,000 KW, an increase of approximately 1,990,000 KWover the annual plan; the cumulative power received from west-to-east power transmission was 178.5 billionKWH, a year-on-year decrease of 1.8%. There was no peak power rationing throughout the year. The province'sinstalled capacity under unified dispatching was 193 million KW, including 147 million KW from provincialdispatching and 45,320,000 KW from municipal dispatching. The utilization hours of coal-fired unit under
provincial dispatching were 4,926 hours, an increase of 206 hours year-on-year; 2,875 hours for gas-fired unit,an increase of 288 hours year-on-year; 7,315 hours for nuclear power units, an increase of 198 hours year-on-year; 2,734 hours for hydropower unit , an increase of 255 hours year-on-year; 923 hours for photovoltaic unit ,a decrease of 202 hours year-on-year; 2,499 hours for wind unit, an increase of 151 hours year-on-year; 4,124hours for biomass, an increase of 623 hours year-on-year. The cumulative on-grid energy of wind power,photovoltaic, hydropower and biomass reached 90.09 billion KWH, a year-on-year increase of 11.9%; thecumulative on-grid energy of nuclear was 99.87 billion KWH, a year-on-year increase of 3.9%. On December29, 2023, the Guangdong Power Trading Center issued the Notice of the Guangdong Provincial Developmentand Reform Commission and the National Energy Southern Regulatory Bureau on the Official Operation of theGuangdong Spot Power Market, indicating that the spot power market in Guangdong officially started formaloperation from now on. Guangdong became the second province after Shanxi to officially operate spot powermarket.According to third-party data from the natural gas industry, China's natural gas production was 229.7 billioncubic meters in 2023, a year-on-year increase of 5.8%; natural gas import volume was 177.556 billion cubicmeters, a year-on-year increase of 9.9%; natural gas export volume was 6.52 billion cubic meters, a year-on-year increase of 10.1%; the apparent consumption of natural gas was 394.53 billion cubic meters, a year-on-year increase of 7.6%. In terms of LNG supply and demand, China's apparent LNG consumption in 2023 was
35.2713 million tons, a year-on-year increase of 22.80%. Among them, domestic LNG supply was 23.2593million tons, a year-on-year increase of 12.9%; imported LNG tanker supply was 12.012 million tons, a year-on-year increase of 47.90%. In terms of LNG prices, the average ex-factory price of China's LNG in 2023 wasRMB 4,911/ton, a year-on-year decrease of 27.61%. Among them, the average ex-factory price of domesticLNG was RMB 4,830/ton, a year-on-year decrease of 24.86%; the average ex-factory price of imported LNGwas RMB 5,126/ton, a year-on-year decrease of 28.73%; the average delivery price of LNG delivered to Chinawas RMB 5,164/ton, a year-on-year decrease of 26.62%. Generally speaking, against the background of thegradual normalization of the Russia-Ukraine war and the slow recovery of the global economy, the overallnatural gas price declined in 2023. International natural gas spot prices fell significantly, with the average priceof the Asian spot natural gas index JKM in 2023 falling by 50% compared with 2022. The Company's fuelprocurement costs decreased slightly from 2022 due to lower international oil prices and natural gas spot gasprices, as well as lower domestic pipeline gas prices compared to 2022.II. Main business of the Company during the reporting periodThe Company shall comply with the disclosure requirements for power supply industry in the Shenzhen StockExchange Listed Company Self-Regulatory Guidelines No. 3 - Industry Information DisclosureThe Company's main business includes power and heat supply for production and operation, and technicalconsulting and technical services related to power plants (stations). At the end of the reporting period, theCompany owned two gas turbine power plants. Among them, Nanshan Power Plant had three sets of 9E gas-steam combined cycle generating units with total installed capacity of 540,000 kilowatts, located in the powerload center area of Qianhai Free Trade Zone, Shenzhen. They are main peak shaving power in the region, andare currently in normal production and operation; Zhongshan Nanlang Power Plant received the Letter onMatters Regarding the Units Shutdown of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. NanlangPower Plant from Energy Bureau of Guangdong Province on November 6, 2023 (YNDLH [2023] No. 672), inwhich Energy Bureau of Guangdong Province agreed to shut down two 180MW gas-fired cogeneration units ofZhongshan Nanlang Power Plant. At present, the two 9E gas-steam combined cycle power generating units
owned by Zhongshan Nanlang Power Plant have been shut down and withdrawn from dispatching operation,and the related assets of the power generating units have entered the public listing and transfer process.During the reporting period, the Company's main power business faced challenges such as fierce competition inthe power market and sustained high fuel price. In order to reduce the negative impact of the externalenvironment on the Company's operating performance, the Company has implemented a series of businesslayout and management changes with innovative thinking and perseverance. The Company clarified annualbusiness goals and policies, adopted targeted major measures, and continuously increased the efforts ineconomic operation management on the basis of strict work safety management. The Company, in line with thetrend of accelerating the power market-oriented reform process in Guangdong Province, organized subordinatepower plants to actively participate in power market marketing and achieved good results, which madecontributions to the Company's turn from losses to profits.During the reporting period, the Company paid close attention to the operational development and marketexpansion of its existing business. Its subsidiary Shenzhen Nanshan Power Engineering Company continued todevelop technical consulting and technical services for domestic and foreign gas turbine power stationconstruction projects while seizing strategic opportunities for the development new energy industry. It focusedon exploring new energy business, tried to build a "construction, operation, management and maintenance"platform for new energy. With its professional and refined technical capabilities, Shenzhen Nanshan PowerEngineering Company has signed multiple contracts to provide clients with professional technical services;Shenzhen Nanshan Power Environmental Protection Company took integrated energy service as itstransformation and development direction, actively expanded comprehensive energy service projects such asindustrial and commercial energy storage, distributed photovoltaic, charging pile, striving to create a newintegrated energy service business model.Main production and operation information
| Item | The reporting period | Same period last year |
| Total installed capacity (10,000 KW) | 54 | 90 |
| Installed capacity of newly commissioned unit (10,000 KW) | 0 | 0 |
| Planned installed capacity of approved projects (10,000 KW) | 0 | 0 |
| Planned installed capacity of projects under construction (10,000 KW) | 0 | 0 |
| Power generation (100 million KWH) | 6.57 | 8.60 |
| On-grid energy or energy sold (100 million KWH) | 6.54 | 8.58 |
| Average power consumption rate of the power plant (%) | 3.90% | 3.50% |
| Utilization hours of the power plant (hours) | 723 | 946 |
The Company's power sales
?Applicable □ Not applicableIn 2023, the Company's two power plants completed a total of 654 million KWH of actual on-grid energy, withmedium- and long-term contracted power such as purchasing and market power amounting to 1.183 billionKWH. The completion of power is as follows: Nanshan Power Plant completed 597 million KWH on-gridenergy, with medium- and long-term contracted power such as purchasing and market power amounting to 945million KWH; Zhongshan Nanlang Power Plant completed 57 million KWH on-grid energy, with medium- andlong-term contracted power such as purchasing and market power amounting to 237 million KWH .Reasons for significant changes in relevant data?Applicable □ Not applicableOn February 21, 2022, Board of Directors reviewed and approved the Proposal on Initiating the Shutdown andRetirement of Two Sets of 9E Gas-fired Unit of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. TheCompany initiated the shutdown and retirement of two 9E gas-fired units of Shenzhen Nanshan PowerZhongshan Company, and submitted an official shutdown and retirement application to Energy Bureau ofGuangdong Province on November 24, 2022. On November 6, 2023, Zhongshan Nanlang Power Plant receivedthe Letter on Matters Concerning the Shutdown of the Units of Shenzhen Nanshan Power (Zhongshan) PowerCo., Ltd. Nanlang Power Plant (YNDLH [2023] No. 672) from Energy Bureau of Guangdong Province.According to the Letter, Energy Bureau of Guangdong Province agreed to shut down two 180 MW gas-firedcogeneration units of Zhongshan Nanlang Power Plant. As of the end of 2023, the Company's total installedcapacity has dropped to 540,000 KW.III. Core competitiveness analysisIn recent years, affected by the macroeconomic situation and common problems in the gas turbine powergeneration industry, the Company's main business is facing increasing difficulties and challenges. However, thebasic core competitiveness formed by more than 30 years of operation and development and the strong supportof the Company's major shareholders, as well as the innovative management measures taken by the Board ofDirectors and management team have laid the necessary foundation for the Company's continued operations andpursuit of transformation and development. During the reporting period, the Company closely focused on thecore task of high-quality party building to lead high-quality development, anchored the two major goals ofoperation and development, and adhered to the management principles of standardization, science, pragmatism,efficiency, fairness and justice, and performed various tasks in a down-to-earth manner. These initiatives havefully promoted the Company's overall development, further consolidating and enhancing the Company's corecompetitiveness.
1. Management culture of hard work and innovation. The Company has a group of management personnel witha sense of innovation and the spirit of hard work. By deepening human resource reform and building aperformance-oriented appraisal and incentive mechanism, the Company advocates and creates a managementculture of unity, hard work, innovation and progress. At the same time, the Company attaches great importanceto and vigorously promotes the construction of institutional system, management system and compliancesystems. It adheres to standardized management in a legal, scientific and rigorous, efficient and orderly manner.Through refined and standardized management orientation, a good foundation has been laid for the Company todeeply explore internal potential and actively seek external opportunities.
2. Professional and enterprising technical talents. With more than 30 years of hard work and influence in the gasturbine power generation industry, the Company has attracted and trained a group of technical experts andprofessionals in the gas turbine industry, and has accumulated rich experience in the construction andoperational management of gas turbine power plants. In order to comply with the market trend of power market-oriented reform in the Guangdong Province, the Company has established a professional power marketing teamto study power trading strategies, explore and build power marketing mathematical models. The accumulativerich experience in power marketing has laid a solid foundation for the Company to participate in theconstruction of new power market and integrate into the wave of power market reform. In addition, ShenzhenNanshan Power Engineering Company also provides professional services such as technical consultation,commissioning, and operation guarantee for dozens of domestic and overseas gas turbine power stations; theCompany has successively undertaken technical personnel training services for dozens of power plants at homeand abroad, and has become a well-known professional talent training base in the domestic gas turbine industry,establishing a good reputation and professional brand image in the peer group.
3. A level of expertise that is up to date. The Company has a number of independent utility model patents andsoftware copyrights, and jointly drafted and compiled 1 national standard. On December 23, 2021, it wasrecognized by the Shenzhen Municipal Certification Management Agency as the second batch of high-techenterprise in 2021, representing that the company's scientific R&D and innovation work has been unanimouslyaffirmed by the society. During the reporting period, the Company applied for 7 utility model patents and 1invention patent, with 6 utility model patents having been authorized. The Company's total number ofauthorized patents has reached 44 (including 4 invention patents) and 8 software copyrights, which has greatlyenhanced the Company's brand image and industrial competitiveness.
4. Rich experience in industrial exploration. The Company gives full play to its own advantages to accumulateexperience in the construction and operation of new energy industries such as electrochemical energy storage,photovoltaic, and charging pile, and actively develop comprehensive energy business. Through the preliminarywork of independent energy storage power stations and the construction and operation of photovoltaic projects,the Company has accumulated certain experience in the preliminary preparation, construction, commissioning,operation and maintenance of energy storage projects, and has trained a group of professionals. The rich talentpool and technological advantages in the traditional power industry enable the Company to tap its potential andhave laid a solid technology and talents foundation for the Company to enter the new energy service field
5. Leading environmental protection level. The Company's power plants are all gas-fired generator units thatuse natural gas as fuel. The CO
emissions in flue gas are approximately 42% of those of coal-fired powerplants, providing strong support for the national "carbon peaking and carbon neutrality" construction. Inaccordance with the requirements of the Shenzhen Municipal People's Government 2018 'Shenzhen Blue'Sustainable Action Plan, the Company fully completed the "Shenzhen Blue" transformation of the #3, #10 and#1 gas turbines of Nanshan Power Plant. After the transformation, the nitrogen oxide emissions of each unitwere reduced to less than 15mg/m
, reaching the world's most advanced level. Nanshan Power Plant was alsoselected as the Top Plant Award by Power Magazine, the most authoritative magazine in the global powerindustry founded in 1882.
IV. Main business analysis
1. Overview
2023 is the first year to fully implement the spirit of the 20th National Congress of the Communist Party ofChina. It is also a critical year for the Company to carry out the transformation strategy. The Company'smanagement leads all employees to face difficulties and work hard. Focusing on the core task of high-qualityparty building to lead high-quality development, and anchoring the two major goals of operation anddevelopment, we make every effort to ensure the safety and stability of power production, vigorously improvethe profitability of main business, and actively explore the development path of transformation and upgrade,while also comprehensively carrying out the optimization, improvement and innovation of internal managementsystems and mechanisms. All the initiatives have helped us to build a standardized and efficient institutionalsystem and a long-term mechanism for compliance operations. As a result, the clean and upright corporateculture is reshaped, a vigorous atmosphere of entrepreneurship is created, achieving operating results that farexceeded expectations, and turned losses into profits.The main work carried out by the Company during the reporting period is as follows:
(1) Strengthening the foundation by paying close attention to safety and stability. In 2023, the Company firmlyestablished the concept of safe development, persisted in ensuring work safety, comprehensively consolidatedthe mechanism of main body responsibility and the foundation of work safety. We have actively carried outwork safety supervision and management to ensure the safe and orderly operation of the Company's productionand operations. We also maintained a stable environment for work safety and kept good records of the "FiveNos" safety goals. First, we have signed a safety responsibility list to improve target control measures. Wecomprehensively implemented safety management responsibilities and the work safety responsibility system forall employees, strictly and meticulously implement work safety measures, so as to build a solid work safetybottom line, and ensure the Company's sustainable development. Second, we have carried out solid safetyhazard investigation to make every effort to resolve safety risks. We carried out in-depth "special action toinvestigate and manage major safety hazards in the Company" to fully understand and dynamically grasp thenumber of major work safety hazards; meanwhile, we promoted the implementation of the statutory duties ofcompany leaders and the work safety responsibility system, so as to promote the transformation of the worksafety management model to pre-emptive prevention. Third, we have strengthened technical supervision andpay close attention to the source of safety. In response to equipment failures, we organized equipmentassessment work to comprehensively evaluate equipment status, grasp the technical status of productionequipment. Based on the assessment, we analyzed equipment health and reliability to carry out targetedequipment rectification, so as to ensure equipment reliability, and improve the intrinsic safety of equipment.
(2) Make overall plans to improve performance by tapping potential and enhancing efficiency. In 2023, whenthe external market environment was not improved significantly, the Company made overall planning andcoordination of internal resources to maximize the cost reduction and efficiency increase on the basis of fullyensuring the safe and stable operation of power production, resulting in a year-on-year reduction in net profitattributable to parent company by RMB 164.32 million. The first thing we have done is to optimize the gas andelectricity matching mechanism. The Company's headquarters fully coordinated the fuel procurement andpower marketing work of Nanshan Power Plant and Shenzhen Nanshan Power Zhongshan Company. Bystrengthening the matching management of gas and power, we meticulously formulated and dynamicallyadjusted the clearing strategy, striving for the decrease in natural gas price, and effectively avoiding unplanneddowntime penalties. Under the circumstances where the fuel price did not drop significantly, the Company's
marginal contribution of main business turned losses into gains. Second, we strengthened budget control in anall-round way. On the premise of ensuring work safety, we strictly controlled all kinds of non-essential and non-urgent expenses, and at the same time, realized a significant year-on-year decline in period expenses by meansof intensive procurement and suppression of variable expenses; by strengthening communication withgovernment departments, we actively sorted out power generation-related subsidy policies, proactively exploredpotential subsidy funds, and followed up on the entire process of subsidy application and issuance. Finally, wesuccessfully obtained government subsidies RMB 25.40 million. The third is to strengthen post-investmentmanagement. The dividends received from the investment on Nanjing Sunpower, Liaoyuan EnvironmentalProtection and Yuanzhi Ruixin Asset were approximately RMB 10 million.
(3) Concentrating efforts to tackle difficulties and striving for development. At the beginning of 2023, theCompany clarified the strategic direction of transformation and development as focusing on new energyindustry and energy storage field, and also set annual goals. Over the past year, the Company has activelyplanned around the integrated energy service industry chain to actively participate in the establishment of equityfund for new energy storage industry in Shenzhen. We leveraged the energy storage fund's synergy andempowerment in terms of capital, industrial ecology, business resources, M&A opportunities, etc., so as topromote the Company's business innovation and expansion and industrial upgrading; meanwhile, we preparedthe Company's five-year strategic plan to specify the its strategic positioning for the next five years, includingspecific ideas and measures, comprehensively leading the Company's transformation and development in thenext stage. All subsidiaries found their own correct path for transformation and development. In the face ofdifficulties and challenges, they never gave up but worked hard with perseverance. All the staff from top tobottom made joint efforts to resolutely achieve the common goal. Finally, we successfully completed the annualgoal. First, we revitalized those inefficient assets. When facing difficulties such as unplanned downtime, landacquisition and storage, and employee resettlement, despite many challenges and huge pressures such as fewprevious lessons to draw on, great difficulty, wide involvement, urgent schedule, complex work nodes, theShenzhen Nanshan Power Zhongshan Company still achieved significant progress and three breakthroughs. Aswe could see that Zhongshan Company's unit shutdown was approved, the land purchase and storage agreementwas implemented, and employee placement was smoothly resolved, all these greatly reduced the Company'soperating pressure and cost burden, laying a solid foundation for the Company's transformation anddevelopment of its main business. Second, we activated the existing power. With its key breakthroughs andinnovative achievements in technology, engineering, and management in the field of gas turbine power plantconstruction for many years, Shenzhen Nanshan Power Engineering Company, previously rated as a national"high-tech enterprise", was successfully selected as the 2023 Shenzhen "specialized, refined, differential andinnovation small and medium-sized enterprises"; the "construction, operation, management and maintenance"management platform established in the field of new energy and energy storage grasped the general trend toseize the maintenance service market; meanwhile, we actively developed domestic maintenance servicebusiness, and concluded multiple contracts. Third, we explored market opportunities. Shenzhen Nanshan PowerEnvironmental Protection Company actively explored and expanded project opportunities in industrial andcommercial energy storage field. It successfully developed the Zhaochi energy storage project, and at the sametime obtained the trading qualification of a power sales company, achieving a new breakthrough in itstransformation and development into an integrated energy service provider. Fourth, we optimized the businessstructure. Xiefu Company seized opportunities to carry out the property lease management service business ofShenzhen Energy Corporation. It increased its profitability by grasping this business opportunity.
(4) Focusing on strengthening management through innovation and change. In 2023, the Company adhered tothe concept of "only innovators advance, only innovators are strong, and only innovators win". Aiming at thedirection of the Company's strategic transformation, while comprehensively implementing the adjustment andoptimization of the industrial layout, we established and improved the market-oriented institutional mechanismcompatible with the transformation and development. These initiatives laid the foundation for comprehensivestandardized management of the Company. Additionally, we deepened the reform with a focus on improvingthe vitality and efficiency of the Company's system with a mindset of innovation and pursuit of change. First,we advanced the construction of the Company's compliance management system in a scientific and orderlymanner in line with state-owned assets supervision. We vigorously promoted the construction of a complianceculture, standardized working mechanisms, and optimized business processes. We also continuously carried outinstitutional system sorting work to optimize and improve work. During the year, 134 new systems were addedand revised to comprehensively reconstruct the Company's management system and improve thestandardization of the Company's operations. Second, we strengthened the foundation of the team by optimizingpersonnel service. We deeply promoted the reform of the personnel selection and employment mechanism,comprehensively implemented the rectification of personnel selection and employment issues. We introduced aseries of management systems for the selection and appointment of middle-level cadres in order to standardizeand improve related work processes such as cadre selection and appointment, employee recruitment andpromotion; we scientifically formulated and assigned positions and staffing plans to strengthen the rigidrestrictions on job allocation; we innovated senior management job competition and contractual management.We established an motivation & restriction assessment mechanism for senior management in order to strengthenthe application of performance assessment results. These initiatives effectively stimulated the overall dynamicsand vitality within the Company, and enabled the Company's transformation and development. Third, we madegeneral reforms to fully promote the Company's systematization and informatization construction. Weinnovated the intelligent management model by completing the optimization and upgrade of the OA system. Wesuccessfully created an efficient and intelligent office platform that met the needs of the Company'sstandardization, process and fine management, significantly improving our operating efficiency; wecomprehensively upgraded the financial information system, simultaneously promoted the standardization andregularization of accounting basics, so as to help the Company's financial accounting system transform tounified management and control, and improve financial management efficiency and level. Fourth, we madeoverall arrangements to consolidate comprehensive budget management and control capabilities. Wecomprehensively upgraded the budget management concept. We transformed into comprehensive and proactivebudget control by using budget control tools; we carried out in-depth economic operation regulation work toenhance the economic operation regulation level and improve the operation briefing system, so as to support theachievement of operating performance.
(5) Creating a clean and upright ecosystem under the guidance of the Party. In 2023, the Company thoroughlyimplemented Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the spirit of the20th National Congress of the Communist Party of China. We strengthened Party leadership and Party buildingwith a high political stance. With the goal of high-quality party building to promote high-quality development,and with the focus on strengthening the foundation of party building and reinforcing "one post & tworesponsibilities" system, we promoted the integration of party building and business. The first is to learn, thinkand practice and strengthen theoretical arming. Adhering to the guidance of party building, we conscientiouslyorganized, studied and implemented the important instructions of General Secretary Xi Jinping’s series ofimportant speeches; adhering to the unity of learning, thinking and application, and the unity of knowledge,belief and action, we transformed the results of party building work into important measures to guide and
promote the Company's operation and development; we regularly organized theoretical study, center groupstudy and first topic study, and carried out concentrated study and seminars. The second is to continue toconsolidate the foundation of party building. We established and improved party building rules and regulations,improved the rules of procedure for party committee meetings, and strengthened the leadership role of the partycommittee in "guiding the direction, managing the overall situation, and ensuring implementation"; westrengthened the construction of organizational teams and recruited full-time party cadres, so as to enhance therole of grassroots party organizations as a fighting fortress. The third is to make sure the fulfillment ofresponsibilities to strengthen the construction of a clean and upright ecosystem for party building. We continuedto promote the responsibility system for a clean and upright ecosystem for party building by strengthening workstyle construction and strictly implementing inner-party supervision. We conscientiously implemented the workof "eliminating the four forms of decadence" to establish new practices. We ensured the fulfillment ofresponsibilities to comprehensively and strictly administering the party. We consolidated the organizationalfoundation of discipline inspection and supervision by establishing a discipline inspection and supervisionoffice; meanwhile, we improved relevant working mechanisms to effectively strengthen self-supervision, andpurify the political ecology.In 2023, the Company reported operating revenue of RMB 589,780,200, with net profit attributable toshareholders of the listed company of RMB 4,158,800, and basic earnings per share of RMB 0.0069.
2. Revenue and costs
(1) Composition of operating revenue
Unit: RMB
| 2023 | 2022 | Year-on-year increase or decrease | |||
| Amount | Proportion to operating revenue | Amount | Proportion to operating revenue | ||
| Total operating revenue | 589,780,190.71 | 100% | 694,227,657.28 | 100% | -15.05% |
| By sector | |||||
| Power industry | 588,370,570.20 | 99.76% | 692,615,690.26 | 99.77% | -15.05% |
| Others | 1,409,620.51 | 0.24% | 1,611,967.02 | 0.23% | -12.55% |
| By product | |||||
| Power industry - power production and sales | 562,688,722.91 | 95.41% | 650,670,587.61 | 93.73% | -13.52% |
| Power industry -integrated energy service | 25,681,847.29 | 4.35% | 41,945,102.65 | 6.04% | -38.77% |
| Others | 1,409,620.51 | 0.24% | 1,611,967.02 | 0.23% | -12.55% |
| By region | |||||
| Domestic | 589,780,190.71 | 100.00% | 694,227,657.28 | 100.00% | -15.05% |
| Sales mode | |||||
| Direct sales | 589,780,190.71 | 100.00% | 694,227,657.28 | 100.00% | -15.05% |
(2) Industries, products, regions, and sales models that account for more than 10% of the Company'soperating revenue or operating profit?Applicable □ Not applicableThe Company shall comply with the disclosure requirements for power supply industry in the Shenzhen StockExchange Listed Company Self-Regulatory Guidelines No. 3 - Industry Information Disclosure
Unit: RMB
| Operating revenue | Operating costs | Gross margin | Year-on-year increase or decrease in operating revenue | Year-on-year increase or decrease in operating costs | Year-on-year increase or decrease in gross margin | |
| By product | ||||||
| Power industry - power production and sales | 562,688,722.91 | 572,117,240.68 | -1.68% | -13.52% | -26.63% | 18.16% |
| By region | ||||||
| Domestic | 589,780,190.71 | 581,442,543.98 | 1.41% | -15.05% | -27.74% | 17.32% |
| By sales mode | ||||||
| Direct sales | 589,780,190.71 | 581,442,543.98 | 1.41% | -15.05% | -27.74% | 17.32% |
Reasons for major changes in relevant financial indicators
□Applicable ? Not applicable
(3) Whether the Company's physical sales revenue is greater than its labor service revenue?Yes □ No
| Industry | Item | Unit | 2023 | 2022 | Year-on-year increase or decrease |
| Power industry | Sales volume | 100 million KWH | 6.54 | 8.58 | -23.78% |
| Production | 100 million KWH | 6.57 | 8.60 | -23.60% | |
| Inventory | 100 million KWH | 0.00 | 0.00 | - |
Explanation for relevant data changed by more than 30% year-on-year
□Applicable ? Not applicable
(4) Performance of the major sales contracts and major procurement contracts signed by the Company asof the reporting period
□Applicable ? Not applicable
(5) Composition of operating costs
Industry and product classification
Unit: RMB
| Industry | Item | 2023 | 2022 | Year-on-year increase or decrease | ||
| Amount | Proportion to operating costs | Amount | Proportion to operating costs | |||
| Power industry | Fuel | 470,823,746.78 | 80.98% | 661,182,466.78 | 82.17% | -28.79% |
| Power industry | Employee compensation | 39,310,209.34 | 6.75% | 37,731,564.54 | 4.69% | 4.18% |
| Power industry | Depreciation and amortization | 26,880,870.06 | 4.62% | 28,340,291.45 | 3.52% | -5.15% |
| Power industry | Others | 44,166,016.19 | 7.60% | 77,166,066.61 | 9.59% | -42.76% |
| Others | Others | 261,701.61 | 0.05% | 258,934.10 | 0.03% | 1.07% |
Unit: RMB
| Product | Item | 2023 | 2022 | Year-on-year increase or decrease | ||
| Amount | Proportion to operating costs | Amount | Proportion to operating costs | |||
| Power industry - power production and sales | Fuel | 470,823,746.78 | 80.98% | 661,182,466.78 | 82.17% | -28.79% |
| Power industry - power production and sales | Employee compensation | 37,939,920.55 | 6.52% | 37,731,564.54 | 4.69% | 0.55% |
| Power industry - power production and sales | Depreciation and amortization | 26,880,870.06 | 4.62% | 28,340,291.45 | 3.52% | -5.15% |
| Power industry - power production and sales | Others | 36,472,703.29 | 6.27% | 52,478,923.00 | 6.52% | -30.50% |
| Power industry -integrated energy service | Engineering labor | 9,063,601.69 | 1.56% | 24,687,143.61 | 3.07% | -63.29% |
| Others | Others | 261,701.61 | 0.05% | 258,934.10 | 0.03% | 1.07% |
RemarkThe Company's operating costs are mostly from natural gas. In 2023, the Company's cost of natural gasaccounted for 80.98% of operating costs; in 2022, the Company's cost of natural gas accounted for 82.17% ofoperating costs.
(6) Whether there are changes in the consolidation scope during the reporting period?Yes □ NoAs of December 31, 2023, there were a total of 8 entities included in the Company's consolidated financialstatements, one less than the beginning of the period. The main reason was that during the reporting period, thebusiness strategy of Shenzhen Nanshan Power Zhongshan Company adjusted. In view of the fact that theCompany's controlling subsidiary Shenzhen Nanshan Power (Zhongshan) Warehousing Co., Ltd. has nosubstantive operations, so there was no need for existence. As a result, we made the cancellation of registrationfor the company on December 13, 2023.
(7) Significant changes or adjustments to the Company's business, products or services during thereporting period
□Applicable ? Not applicable
(8) Major sales customers and major suppliers
The Company's main sales customers
| Total sales amount of top five customers (RMB) | 588,238,682.41 |
| Ratio of the total sales amount of the top five customers to total annual sales | 99.74% |
| Ratio of sales to related parties in the annual total sales of the top five customers | 0.00% |
Information on the Company’s top 5 customers
| No. | Customer name | Sales (RMB) | Ratio to total annual sales |
| 1 | Shenzhen Power Supply Bureau Co., Ltd. | 499,838,060.26 | 84.75% |
| 2 | Guangdong Grid Co., Ltd. | 62,850,661.65 | 10.66% |
| 3 | China Machinery Engineering Corporation | 24,522,358.98 | 4.16% |
| 4 | Dengfeng International Engineering Co., | 767,924.52 | 0.13% |
| Ltd. | |||
| 5 | Sinohydro Engineering Bureau 8 Co., Ltd. | 259,677.00 | 0.04% |
| Total | -- | 588,238,682.41 | 99.74% |
Other information on major customers
□Applicable ? Not applicable
The Company's main suppliers
| Total purchase amount of top five suppliers (RMB) | 504,438,800.25 |
| Ratio of the total purchase amount of the top five suppliers to the total annual purchase amount | 99.16% |
| Ratio of purchase amount of related parties among the top five suppliers to the total annual purchase amount | 0.00% |
Information on the Company's top 5 suppliers
| No. | Supplier name | Purchase amount (RMB) | Ratio to total annual purchase amount |
| 1 | Shenzhen Gas Group Co., Ltd. | 284,515,538.23 | 55.93% |
| 2 | CNOOC Gas & Power Group Co., Ltd. | 189,023,738.54 | 37.16% |
| 3 | Shenzhen Power Supply Bureau Co., Ltd. | 21,297,990.54 | 4.19% |
| 4 | Shenzhen Water and Environment (Group) Co., Ltd. | 6,686,147.73 | 1.31% |
| 5 | Zhongshan Power Supply Bureau of Guangdong Grid Co., Ltd. | 2,915,385.21 | 0.57% |
| Total | -- | 504,438,800.25 | 99.16% |
Other information on major suppliers
□Applicable? Not applicable
3. Cost
Unit: RMB
| 2023 | 2022 | Year-on-year increase or decrease | Description of significant changes | |
| Selling and distribution expenses | 2,831,748.65 | 375,055.78 | 655.02% | The Company's continued strengthening of project development and vigorous expansion |
| of business in the field of integrated energy service have led to a year-on-year increase in the selling and distribution expenses | ||||
| G&A expenses | 58,330,596.87 | 79,099,350.54 | -26.26% | The Company strengthened comprehensive budgetary control and strictly controlled all kinds of non-essential and non-urgent expenses, which resulted in a year-on-year decrease in G&A expenses |
| Financial expenses | 11,579,637.38 | 32,142,802.50 | -63.97% | The optimization of asset and liability structure of the Company has led to a decrease in financing scale, and a year-on-year decrease in financial expenses |
| R&D expenses | 26,839,912.74 | 25,647,534.39 | 4.65% |
4. R&D investment
?Applicable □ Not applicable
| Name of main R&D project | Purpose | Progress | Goals to be achieved | Expected impact on the Company's future development |
| R&D of intelligent fire protection device for gas turbine |
The R&D of theoverall upgrade ofthe #3 gas turbineCO2 fire protectionsystem caneffectively securethe unit's safeoperation and
| Completed | Complete the upgrade and transformation of the gas turbine CO2 fire protection system and created an intelligent equipment | Improve the safety and reliability of power production, effectively ensure the stable operation of the unit, and enhance the technological content and core competitiveness of the |
| reliability; scientific and reasonable selection of modified products to ensure the stable operation of the unit. | management model. | Company's products and services. | ||
| R&D of built-in atomized air pipeline structure for steam turbine high-pressure bypass | We aim to optimize the structure of the atomizing steam pipe through R&D; meanwhile, it is transformed from the outside of the valve body to the inside of the valve body, so that the direction of the atomizing steam pipe is improved and safety hazards are completely eliminated. | Completed | Complete the optimization of built-in atomized air pipeline structure for steam turbine high-pressure bypass; meanwhile, new technologies are used to eliminate potential safety hazards. | Improve the performance of equipment, optimize the system structure of equipment, eliminate safety hazards, and enhance the technological content and core competitiveness of the Company's products and services. |
| R&D of jacking oil pump system of gas turbine based on automatic adjustment | The modification and development of the unit's jacking oil pump system and pipelines can eliminate the operational safety hazards of the jacking oil pump, so that the reliability of the equipment can be effectively improved, and at the same time the efficiency of operation, inspection and maintenance can be improved. | Completed | Complete the upgrade and transformation of the unit's jacking oil pump system and pipeline performance; meanwhile, focus on the innovative use of excellent technologies, so as to solve technical difficulties of the equipment. | Optimize and improve equipment performance, improve the operation safety and reliability of the equipment, enhance the work efficiency of inspection personnel, eliminate safety hazards, and enhance the technological content and core competitiveness of the Company's products and services. |
| R&D of black start | Through R&D of | Completed | Optimize the | Conduct in-depth |
| of gas turbine power plants based on electrochemical energy storage system | electrochemical energy storage systems, system parameter data can be optimized to further improve power supply reliability; the upgrade of energy storage system can activate black start function and auxiliary frequency modulation function. | electrochemical energy storage system; reasonably adopt new data parameters to optimize black start and auxiliary frequency regulation functions, so as to improve power supply reliability. | research to improve equipment performance, optimize energy storage systems, improve power supply reliability, and enhance the technological content and core competitiveness of the Company's products and services. | |
| Research and development of exciter rotor armature-specific connecting piece using silver soldering technology | Apply the silver-based solder in the research and development of upgrading the exciter armature coil-specific connecting piece. This reduces the likelihood of the connecting piece breaking due to thermal stress and interference from the high-speed rotation of the exciter armature coil, thereby ensuring prolonged and stable operation of the gas turbine generator. | Completed | Application of new materials and new welding technologies to improve the service life of the exciter rotor armature-specific connecting piece. | Proactively pursue the development of new technologies aimed at improving the operational efficiency of units, extending stable operation cycles, and elevating the technological content and core competitiveness of the Company's products and services. |
| Research and development of circulating water cooling system for thermal power plants with two plate heat | Upgrade research and development of the gas turbine cooling water system to eliminate the risk of equipment leakage | Completed | Creation of a new parallel operation mode for gas turbine cooling water systems to improve the efficiency of circulating water |
Conduct in-depthresearch on thetechnological innovationand application ofequipment, use newtechnologies to reducethe adverse effects of
| exchangers operating in parallel | and hidden dangers that may compromise the safe and stable operation of units, thereby improving the operating reliability of unit and improving the working efficiency of circulating water cooling. | cooling. | unstable equipment operation, improve equipment performance, and enhance the technological sophistication and core competitiveness of the Company's products and services. | |
| Research and development of energy-saving devices for high-pressure feed water pumps of power plant boilers based on frequency modulation | Study the frequency modulation technique for connecting the high-pressure motor of water supply to the boiler, ensure energy-efficient operation of boiler water supply. This approach effectively reduces factory power consumption while enhancing the safety of the boiler's water supply system. | Completed | Complete upgrade and transformation of the frequency modulation technique for connecting the high-pressure motor of water supply to the boiler to reduce the power consumption of the boiler in the water supply plant. | Conduct in-depth research on the technological innovation and development of equipment to effectively reduce operating energy consumption of units, improve equipment safety, and enhance the technological sophistication and core competitiveness of the Company's products and services. |
R&D staff
| 2023 | 2022 | Change ratio | |
| Number of R&D staff | 87 | 71 | 22.54% |
| Proportion of number of R&D staff | 30.63% | 18.59% | 12.04% |
| Educational structure of R&D staff | |||
| Undergraduate | 47 | 34 | 38.24% |
| Postgraduate | 1 | 1 | 0.00% |
| Age composition of R&D staff | |||
| Under 30 years old | 16 | 6 | 166.67% |
| 30-40 years old | 10 | 8 | 25.00% |
| Over 40 years old | 61 | 57 | 7.02% |
R&D investment of the Company
| 2023 | 2022 | Change ratio | |
| Amount of R&D investment (RMB) | 26,839,912.74 | 25,647,534.39 | 4.65% |
| Ratio of R&D investment in the operating revenue | 4.55% | 3.69% | 0.86% |
| Amount of R&D investment (RMB) | 0.00 | 0.00 | 0.00% |
| Ratio of capitalized R&D investment in R&D investment | 0.00% | 0.00% | 0.00% |
Reasons and impacts of major changes in the Company's R&D staff composition?Applicable □ Not applicableThe number of R&D staff holding bachelor's degree increased by 38.24% compared with 2022, and the numberof personnel under 30 years old grew by 166.67% compared with 2022. This is mainly due to factors such aspersonnel changes related to entry, resignation, and retirement, as well as adjustments to R&D staff based on theneeds of R&D projects. The Company's number of R&D staff meets the ratio requirements of national high-techenterprise.Reasons for the significant change in the proportion of total R&D investment in operating revenue comparedwith the previous year
□Applicable ? Not applicable
Reasons for substantial changes R&D investment capitalization rates and their rationale
□Applicable ? Not applicable
5. Cash flow
Unit: RMB
| Item | 2023 | 2022 | Year-on-year increase or decrease |
| Sub-total of cash inflows from operating activities | 739,641,073.57 | 1,141,649,432.06 | -35.21% |
| Sub-total of cash outflows from operating activities | 840,013,050.49 | 934,481,029.80 | -10.11% |
| Net cash flows from operating activities | -100,371,976.92 | 207,168,402.26 | -148.45% |
| Sub-total of cash inflows from investing activities | 749,228,184.97 | 178,535,035.18 | 319.65% |
| Sub-total of cash outflows from investing activities | 456,538,387.59 | 283,315,286.80 | 61.14% |
| Net cash flows from investing activities | 292,689,797.38 | -104,780,251.62 | 379.34% |
| Sub-total of cash inflows | 421,093,926.90 | 1,089,969,316.66 | -61.37% |
| from financing activities | |||
| Sub-total of cash outflows from financing activities | 950,780,554.86 | 1,234,410,158.23 | -22.98% |
| Net cash flows from financing activities | -529,686,627.96 | -144,440,841.57 | -266.72% |
| Net increase in cash and cash equivalents | -337,286,752.50 | -41,582,961.53 | -711.12% |
Explanation of the main factors affecting significant year-on-year changes in relevant data?Applicable □ Not applicable
(1) During the reporting period, cash inflows from operating activities decreased by 35.21% year-on-year,mainly due to the receipt of refunds for VAT retained for future offsetting, RMB 330 million, in the same periodlast year. There was no such cash inflow this year, and cash inflows from operating activities decreased year-on-year.
(2) During the reporting period, net cash flows generated from operating activities decreased by 148.45% year-on-year, mainly due to the receipt of refunds for VAT retained for future offsetting in the same period last year.There was no such cash inflow this year, and net cash flows from operating activities decreased year-on-year.
(3) During the reporting period, cash inflows from investing activities increased by 319.65% year-on-year,mainly due to the recovery of financial assets held for trading the current period, and cash inflows frominvesting activities increased year-on-year.
(4) During the reporting period, cash outflows from investing activities increased by 61.14% year-on-year,mainly due to the increase in large-amount negotiable certificates of deposit for the current period, resulting in ayear-on-year increase in cash outflows from investing activities.
(5) During the reporting period, net cash flows from investing activities increased by 379.34% year-on-year,mainly due to the recovery of financial assets held for trading during the current period, and net cash flows frominvesting activities increased year-on-year.
(6) During the reporting period, cash inflows from financing activities decreased by 61.37% year-on-year. Thiswas mainly due to the optimization of asset and liability structure during the current period, the reduction infinancing scale, and the year-on-year decrease in cash inflows from financing activities.
(7) During the reporting period, net cash flows from financing activities decreased by 266.72% year-on-year,mainly due to the optimization asset and liability structure and the reduction of financing scale the currentperiod, resulting in a year-on-year decrease in net cash flows from financing activities.
(8) During the reporting period, net increase in cash equivalents decreased by 711.12% year-on-year, mainlydue to the receipt of refunds for VAT retained for future offsetting in the same period last year. There was nosuch cash inflow this year, which affected the decrease in net cash flows from operating activities; TheCompany optimized its asset and liability structure and reduced financing scale, which led to the decrease in netcash flows financing activities.Explanation of the reasons for the significant difference between the net cash flow generated by the Company'soperating activities during the reporting period and net profit for the year
?Applicable □ Not applicableDuring the reporting period, there was a significant difference between the Company's net cash flows fromoperating activities of RMB -100,372,000 and the net profit of RMB -2,005,700 for the year, which was mainlydue to the combined effect of investment income, amortization of deferred income, changes in operatingreceivables and payables, depreciation and amortization and other non-cash expenses, and financial expenses, ofwhich the major items were: (1) investment income of RMB 34,997,900, which was included in net profit forthe year but did not affect the net cash flows from operating activities; (2) new advances to suppliers amountingto RMB 22,546,200 were made during the year, which reduced net cash flows from operating activities but didnot affect net profit for the year; (3) government subsidies related to assets received in previous yearsamounting to RMB 17,043,700 were allocated from other income and included in net profit for the current yearbut did not affect the net cash flows from operating activities.V. Analysis of non-main business?Applicable □ Not applicable
Unit: RMB
| Amount | Ratio in total profit | Explanation of causes | Sustainability | |
| Investment income | 34,997,898.47 | -1,744.93% | Mainly due to investment income and dividend income obtained from financial assets held for trading, as well as investment income accounted for under the equity method and recognized by joint-stock companies | Recognized investment income accounted for under the equity method is sustainable |
| Asset impairment | -162,985.78 | 8.13% | Mainly due to provision for inventory depreciation | No |
| Non-operating revenue | 11,687,001.25 | -582.69% | Mainly due to the receipt of the compensation for power outage by Shenzhen Nanshan Power Zhongshan Company and Nanshan Power Plant this year | No |
| Non-operating expenses | 66,116.23 | -3.30% | Mainly due to losses, damage and | No |
scrapping of non-current assets, etc.
VI. Analysis of assets and liabilities
1. Major changes in asset composition
Unit: RMB
| End of 2023 | Beginning of 2023 | Increase or decrease in proportion | Description of significant changes | |||
| Amount | Ratio of total assets | Amount | Ratio of total assets | |||
| Monetary funds | 316,188,782.49 | 15.43% | 675,496,266.40 | 25.92% | -10.49% | Mainly due to the increase in debt repayment and large-amount negotiable certificate of deposit |
| Accounts receivable | 111,975,251.10 | 5.46% | 135,833,492.64 | 5.21% | 0.25% | |
| Contract assets | 88,000.00 | 0.00% | 217,009.58 | 0.01% | -0.01% | |
| Inventories | 86,158,251.16 | 4.20% | 85,279,298.35 | 3.27% | 0.93% | |
| Investment properties | 1,664,566.60 | 0.08% | 1,833,344.20 | 0.07% | 0.01% | |
| Long-term equity investments | 90,001,176.04 | 4.39% | 83,496,098.24 | 3.20% | 1.19% | |
| Fixed assets | 571,482,734.35 | 27.89% | 591,290,204.31 | 22.69% | 5.20% | |
| Construction in progress | 3,448,855.10 | 0.17% | 4,861,062.16 | 0.19% | -0.02% | |
| Right-of-use assets | 2,266,946.42 | 0.11% | 7,707,617.90 | 0.30% | -0.19% | |
| Short-term borrowings | 341,237,886.72 | 16.65% | 879,957,857.44 | 33.76% | -17.11% | Mainly due to the optimization asset and liability structure and the repayment of short-term borrowings in the current period |
| Long-term borrowings | 58,829,426.30 | 2.87% | 28,019,758.68 | 1.08% | 1.79% | |
| Lease liabilities | 0.00% | 2,262,160.03 | 0.09% | -0.09% | ||
| Financial assets held for trading | 226,000,000.00 | 11.03% | 440,013,571.10 | 16.88% | -5.85% | Mainly due to the redemption of trading financial products purchased with existing funds of the current period |
| Other current assets | 232,865,968.63 | 11.36% | 188,248,840.44 | 7.22% | 4.14% | Mainly due to the increase in large-amount negotiable certificate of deposit |
| Other non-current assets | 36,157,735.24 | 1.76% | 5,371,398.18 | 0.21% | 1.55% | Mainly due to the increase in land acquisition and storage of the current period in Shenzhen Nanshan Power Zhongshan Company, suspension of production and business, payment of employee compensation and relocation expenses |
| Other investments in equity instruments | 300,615,000.00 | 14.67% | 300,615,000.00 | 11.53% | 3.14% | |
| Other non-current liabilities | 104,045,112.54 | 5.08% | 47,511.72 | 0.00% | 5.08% | Mainly due to the receipt of land acquisition and storage progress payment by Shenzhen Nanshan Power Zhongshan Company |
Overseas assets account for a high proportion
□Applicable ? Not applicable
2. Assets and liabilities measured at fair value
?Applicable □ Not applicable
Unit: RMB
| Item | Beginning balance | Profit or loss from | Cumulative fair | Provision for | Purchase amount | Sales amount | Other changes | Ending balance |
| changes in fair value of the current period | value changes included in equity | impairment of the current period | of the current period | the current period | ||||
| Financial assets | ||||||||
| 1. Financial assets held for trading (excluding derivative financial assets) | 440,013,571.10 | 931,000,000.00 | 1,145,013,571.10 | 226,000,000.00 | ||||
| 2. Derivative financial assets | ||||||||
| 3. Other debt investments | ||||||||
| 4. Other investments in equity instruments | 300,615,000.00 | 300,615,000.00 | ||||||
| Total | 740,628,571.10 | 931,000,000.00 | 1,145,013,571.10 | 526,615,000.00 | ||||
| Financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
Other changesWhether there are significant changes in the measurement attributes of the Company's main assets during thereporting period
□Yes ? No
3. Restrictions of asset rights as of the end of the reporting period
| Item | Ending balance (RMB) | Balance at the end of the previous year (RMB) |
| Deposit for bank acceptance bills | 0.00 | 27,474,594.34 |
| L/G deposit | 5,453,862.93 | 0.00 |
| Total | 5,453,862.93 | 27,474,594.34 |
VII. Investment status analysis
1. Overall situation
?Applicable □ Not applicable
| Investment amount during the reporting period (RMB) | Investment amount during the same period last year (RMB) | Range of change |
| 0.00 | 100,000,000.00 | -100.00% |
2. Major equity investments acquired during the reporting period
□Applicable? Not applicable
3. Major ongoing non- equity investments during the reporting period
□Applicable? Not applicable
4. Financial assets investment
(1) Securities investment situation
□Applicable? Not applicable
The Company had no securities investments during the reporting period.
(2) Derivatives investment situation
□Applicable? Not applicable
The Company had no derivative investments during the reporting period.
5. Usage of raised funds
□Applicable? Not applicable
The Company has not used the raised funds during the reporting period.VIII. Major asset and equity sales
1. Sale of major assets
?Applicable □ Not applicable
| Counterparty | Assets sold | Date of sale | Transaction prices (RMB 10,000) | Net profit contributed by the asset to the listed company from the beginning of the current period to the date of sale (RMB 10,000) | Impact of the sale on the Company (Note 3) | Ratio of net profit contributed by asset sales to the listed company in the total net profit | Pricing principles of asset sale | Whether it is related transactions | Relationship with the counterparty (applicable to related transactions) | Whether have all the property rights of the assets involved been transferred | Whether all the claims and debts involved have been transferred | Whether it is implemented as planned and as scheduled. If it is not implemented as planned, the reasons and the measures the Company has taken should be explained. | Disclosure date | Disclosure index |
| Zhongshan Cuiheng New Distr | Shenzhen Nanshan Power Zho | December 12, 2023 | 58,445.35 | 0.00 | This land acquisition and storage matter may revitalize | 0.00% | It is based on the Asset Appraisal Report | No | No | Not applicable | Yes | November 8, 2023 | Announcement No.: 2023-048; Announceme |
| ict Management Committee | ngshan Company has three state-owned land use right located in Hengmen Industrial Zone, Nanlang Street, Cuiheng New District, Zhongshan City | the Company's assets in stock, improve the Company's cash flows, reduce the Company's operating pressure, and enable the Company to better focus on transformation and development. This is in line with the Company's strategic development plan, and will have no major impact on the Company's production and operations. | issued by Guangdong Zhixin Land and Real Estate Appraisal Co., Ltd. (YZXPBZ No. [2023] 1175) and determined after consultation between the two parties. |
ntname:
Announcement onmattersrelatedto landacquisitionandstoragesubsidiariesheldShenzhenNanshanPower(Zhongshan)PowerCo.,Ltd.
2. Sale of major equity interests
□Applicable ? Not applicable
IX. Analysis of major holding and joint-stock companies?Applicable □ Not applicableInformation about major subsidiary and joint-stock companies that affect the Company's net profit by more than10%
Unit: RMB 10,000
| Company name | Company type | Main business | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. | Subsidiary | Gas turbine power generation, waste heat power generation, power supply and heating, lease of terminals, oil depots (excluding refined oil, excluding hazardous chemicals, excluding flammable and explosive materials) and power equipment facilities; Land use rights lease; Nonresidential real estate lease. | RMB 746.8 million | 26,831.82 | -53,199.64 | 6,290.86 | -3,537.15 | -3,119.81 |
| Shenzhen New Power Industrial Co., Ltd. | Subsidiary | Technology development for waste heat utilization (excluding restricted projects); electricity generation through waste heat utilization; | RMB 113.85 million | 11,292.65 | 8,223.56 | 23,514.79 | -3,073.99 | -3,030.02 |
| electricity generation through gas turbines. | ||||||||
| Shennan Energy (Singapore) Co., Ltd. | Subsidiary | Oil products trading and gas turbine spare parts agency. | USD 900,000 | 11,797.03 | 11,732.18 | 1,580.29 | 1,627.84 | |
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | Subsidiary | Equity investments, venture capital | RMB 141,478,000 | 14,150.77 | 14,150.77 | 793.35 | 793.35 | |
| Shenzhen Nanshan Power Gas Turbine Engineering Technology (Shenzhen) Co., Ltd. | Subsidiary | Technical consulting services of construction engineering for gas-steam combined cycle power plant (stations), maintenance and overhaul of operating equipment for gas-steam combined cycle power plant (stations); Engineering management services, technical services of engineering, power generation, solar power generation, and energy storage, as well as repairs of electrical equipment and | RMB 10 million | 9,537.79 | 3,553.39 | 4,229.95 | -394.47 | -354.34 |
| general equipment, etc. | ||||||||
| Shenzhen Xiefu Energy Co., Ltd. | Subsidiary | Import and export of goods and technology, domestic trade (excluding specialized, exclusively controlled, and exclusively sold goods); real estate agency, etc. | RMB 53.3 million | 9,241.04 | 7,668.08 | 110.11 | -238.22 | -63.34 |
| Shenzhen Nanshan Power Environmental Protection (Shenzhen) Co., Ltd. | Subsidiary | Energy storage technology services; Energy saving management services; contract energy management; technical services of solar power generation technology; centralized fast charging stations; engage in investing activities with self-owned funds. | RMB 79 million | 5,029.18 | 4,297.17 | 4.95 | 20.19 | |
| Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. | Participating companies | Chemical raw materials, chemicals and energy | RMB 40.75 million | 96,558.01 | 74,054.06 | 66,040.43 | 7,386.62 | 8,593.73 |
Situation of acquiring and disposing subsidiary during the reporting period?Applicable □ Not applicable
| Company name | Methods of acquiring and disposing subsidiary during the reporting period | Impact on overall production operations and performance |
| Shenzhen Nanshan Power (Zhongshan) Warehousing Co., Ltd. | Cancellation during the current period | No substantial operational impact |
Situation descriptionDuring the reporting period, business strategy of Shenzhen Nanshan Power Zhongshan Company was adjusted.In view of the fact that the Company's controlling subsidiary Shenzhen Nanshan Power (Zhongshan)Warehousing Co., Ltd. has no substantive operations and there is no need for its existence. The cancellation ofregistration was completed on December 13, 2023.X. Structured entities controlled by the company
□Applicable ? Not applicable
XI. Prospects for the Company's future development
1. Analysis of the Company's operating situation in 2024
In 2024, the company's main power business will still face an extremely severe operating situation. First, naturalgas price will remain high. Although the Russia-Ukraine conflict has simmered, the global natural gas supplysituation has shown signs of relaxation as long as there are no new geopolitical emergencies or otheremergencies. Nevertheless, with the domestic economy steadily rebounding and demand gradually rising, it isless probable for natural gas prices to witness a significant drop. Despite both the long-term contract price andthe anticipated spot-node electricity price in 2024 being low, the potential for cost-revenue inversion in powergeneration production persists. Second, the Company still faces a challenging responsibility to ensure thecontinuity of power supply. According to the National Electricity Supply and Demand Situation Analysis andForecast Report in 2023 and 2024 released by the China Electricity Council, a steady growth in nationalelectricity consumption is anticipated for 2024. Considering macroeconomic factors and the electrification ofend-use energy, and based on results of forecasting societal electricity consumption through diverse predictionmethodologies, it is projected that the total electricity usage in 2024 will reach 9,800 billion KWH. Thisrepresents a growth of approximately 6% compared to the consumption levels in 2023. It is estimated that thenational maximum power load will be 1.45 billion KW in 2024, an increase of about 100 million KW from2023. During peak periods in the summer and winter, the national electricity supply and demand situation willmaintain a tight balance. As far as Guangdong Province is concerned, considering economic factors, the scale ofnew large-scale users before the summer and the influence of temperature, the maximum regulated load demandduring the summer is expected to be 158,000 MW, a year-on-year increase of 9.2%. The maximum powerplanned to receive Western Power is 38,732 MW, a year-on-year decrease of 3.7 %. The Shenzhen area wherethe Company is located has a predicted maximum load of 24,000 MW in 2024, a year-on-year increase of
8.76%. While power load demand continues to rise, according to the planning arrangements of the ShenzhenMunicipal Government, Nanshan Power Plant may be reduced from dual gas sources to a single gas source.This will further increase the difficulty of ensuring fuel supply and further increase the pressure on theCompany to ensure power supply. Third, competition in the spot power market has become increasingly fierce.On December 29, 2023, the Guangdong spot power market commenced official operations, making Guangdongthe second province after Shanxi to officially operate spot power market. At this stage, spot power market in
Guangdong Province has established a power market system of "medium and long-term plus spot and ancillaryservices", which has clarified the goals of developing a clean, low-carbon, safe and efficient market. As a largenumber of new unit with higher energy efficiency and larger capacity come into operation, the Company'sexisting 9E unit will be subject to an increasingly unfavorable situation in spot power market.Although the Company faces difficulties and challenges in operation, management and development, its clearstrategic development direction is highly consistent with the country's requirements to accelerate the planningand construction of a new energy system, deepen the energy revolution, and achieve the "dual carbon" goals.Simultaneously, the Company boasts extensive business expertise in the energy and power sectors, and hasnurtured a cadre of proficient technical professionals, establishing a solid foundation for the expansion ofintegrated energy services and energy storage operations. The ongoing industrial and commercial energystorage initiatives, alongside the "construction, operation, management, and maintenance" platforms, as well asthe implementation of photovoltaic and other new energy industry upgrade projects by the Company alignclosely with the latest national, provincial, and municipal policy directives. Firmly grasping the pivotalmomentum of new energy's rapid advancement, the Company is transitioning from passive survival to proactivedevelopment, committing wholeheartedly to foster high-quality growth and advancement.
2. Summary of the Company's business plan in 2024
The year 2024 marks the first year for the Company to officially implement its five-year strategic developmentplan, and it is also a critical year for the Company to achieve breakthrough progress in its transformation anddevelopment journey. The Company will uphold the guidance of Xi Jinping Thought on Socialism with ChineseCharacteristics for a New Era, adhering to the guidance of high-quality Party building to ensure high-qualitydevelopment, actively implementing the important decisions and arrangements of the Party Central Committeeon deepening and improving the reform of state-owned enterprises and the "technological capital" developmentstrategy of shareholder's agencies. The Company will deepen market-oriented reform, firmly adhere to theannual overall goal of "achieving fundamental breakthroughs in strategic transformation", make full efforts todrive the revitalization of the Company's main business.
(1) Stick to the bottom line and make every effort to ensure work safety and stable operations. First, firmlyestablish the concept of safe development, further improve the political position, comprehensively consolidatethe main responsibilities, consolidate the foundation of work safety, and make every effort to resolve varioussafety risks. Second, combine the Company's transformation and development needs to build a work safety andtechnical supervision and management system that is compatible with new businesses and new formats toprotect the Company's diversified business development. Third, comprehensively sort out the Company's safetymanagement and technical supervision practices, improve the management process, and gradually realize thestandardization, standardization and informatization of safety management and technical supervision. Fourth,comprehensively collate the Company's emergency plan based on the current situation of the Company's safetymanagement, organize and complete the revision of the emergency plan, strengthen emergency drills, andeffectively improve the company's emergency management level.
(2) Optimize the layout and continue to promote the revitalization of the main business and strategictransformation. First, seize policy opportunities, focus on new energy and energy storage, energy utilities, high-end power equipment and other industrial fields to invest in new projects, and fully promote the implementationof projects that support the Company's sustainable development. Second, create a professional operationplatform for "investment, construction, operation, management and maintenance" in the field of energy storage,gradually build a integrated energy service business model, give full play to the advantages of listed companies'
capital operation platforms and energy storage funds, and increase the layout of energy storage businessexpansion. Third, develop an implementation plan for power sales that aligns with the Company's integratedenergy service transformation strategy, ensuring a clear path forward in executing the Company's power salesinitiatives. Carry out power sales based on the implementation plan, and finalize the establishment of aninstitutional system related to management of the Company's power sales. Fourth, strive to promote thetransformation and development of non-power enterprises, bolster the development of comprehensive energymanagement projects, and establish a sustainable business model; give full play to the role of revitalizing thesystem’s assets in stock and effectively absorbing and utilizing personnel, actively explore new businessdomains and scale them up effectively.
(3) Innovate while staying true to tradition, turning loss into profit through the management of assets in stock.First, execute the comprehensive shutdown of units and the disposal of assets at Shenzhen Nanshan PowerZhongshan Company, make every effort to advance the decommissioning process to ensure the thoroughdisposal of all assets; finalize the transfer of land assets and other tasks as stipulated in the relevant landacquisition and storage agreements. Second, continuously enhance the efficiency of the power tradingmechanism while maintaining comprehensive control over transaction risks. Amidst the upcoming transition toa single gas source model in 2024, proactive measures will be implemented to reinforce fuel supply assuranceand ensure comprehensive coordination. Prioritizing the maximization of the Company's interests, meticulousattention will be given to gas and electricity alignment. This approach will effectively fulfill the responsibilityof guaranteeing power supply while simultaneously enhancing the profitability of the power business. Third,bolster economic operations, intensify unit equipment maintenance, and systematically enhance the marginalcontribution and profitability of power production. This will be achieved through targeted and refined technicalmeasures and management methodologies. Fourth, make more scientifically sound, reasonable, and adaptableoverall strategies for fuel supply, monthly medium and long-term transactions, and unit maintenance. Thesestrategies will be tailored to accommodate changes in capacity price policies, with a primary focus onmaximizing the company's interests. Fifth, enhance research in technological innovation, drive thetransformation and practical application of findings, and cultivate a synergistic environment for value creation.Sixth, strength comprehensive budget management, rigorously monitor all expenses and expenditures, andproactively explore diverse financing avenues to fulfill funding requirements for transformation anddevelopment. Concurrently, efforts will be made to minimize financing costs wherever feasible; closely trackand deeply explore government policy dividends or preferential policies to increase revenue and reduceexpenditure.
(4) Establish a solid foundation and elevate standardized management to a new level. First, strengthen corporategovernance, keep up with the latest requirements of national laws, regulations and securities supervisionregulations, and continuously optimize and improve the institutional system of corporate governance;According to the actual development needs of the Company and market conditions, the functions of the capitaloperation platform of listed companies will be fully utilized to assist the implementation of the Company'stransformation and development tasks. Second, enhance standardized management practices, deepencompliance protocols, and further refine the Company's institutional system and operational mechanisms ofcompliance management. Execute specialized compliance initiatives in key areas, and extend the reach of thecompliance management system to subsidiary enterprises. Third, strengthen the management of affiliatedenterprises. All functional departments of the Company must efficiently fulfill their service roles andcollaborate across all business chains to elevate the institutionalization, standardization, and refinement ofmanagement practices within affiliated enterprises. Fourth, Intensify financial management by anchoring on
comprehensive budgeting as the lever. Establish a budget management organizational framework fosteringcross-departmental collaboration and multifaceted coordination. Reinforce budget performance management,leveraging comprehensive budgeting as a vital instrument to propel the reform of market-oriented mechanismsand bolster the implementation of the Company's strategic planning. Fifth, enhance audit risk controlmanagement by reinforcing internal audit oversight and compliance with risk control measures. Vigilantlymonitor and implement the audit rectifications and spearhead efforts to elevate the Company's standardizedmanagement practices and enhance levels of risk prevention and control.
(5) Deepen reforms and continuously enhance corporate vitality and competitiveness. First, explore andimplement a more flexible and efficient market-based salary management mechanism reform and establish aperformance-linked salary revenue distribution system. Second, continuously advance a performance-drivenculture by instituting a mid- to long-term incentive mechanism for the management team, incorporating bothannual objectives and the goals associated with employees' tenures. Develop a scientifically sound, reasonable,and challenging system of differentiated performance indicator assessment, adhering to the principle of 'oneenterprise, one policy'; Further strengthen the evaluation of operating performance indicators for affiliatedenterprises and the performance assessment of the Company's management cadre. Implement rigorousconstraints of evaluation. Third, continue to facilitate the integration and optimization of human resourceswithin the system, while actively attracting exceptional external talents to cultivate a skilled team aligned withthe company's transformation and development objectives. Fourth, develop the targeted and professionaltraining plans tailored to the Company's transition towards an integrated energy service industry. Enhancetraining programs to nurture skilled talents of different skills aligned with the Company's strategic positioning;deploy internal competition mechanisms and job rotation exchange programs to actively foster and identifyexceptional young cadres, while proactively building a talent reservoir. This initiative aims to cultivate a high-caliber talent pool tailored to meet the Company's evolving transformation and development requirements.
(6) Unite hearts and minds, emphasizing the importance of Party leadership and Party building. First, enhancepolitical guidance, uphold comprehensive and rigorous governance within the Party, ensuring the effectivemanifestation of the Party's core role through the "six unifications". This will enable the leading and supportingrole of Party building efforts in enterprise reform, transformation, and development. Second, continue tostrengthen consolidating grassroots Party building, give full play to the role of grassroots Party Branches asfrontline bastions, and take the Company's reform, transformation and development as the starting point andgoal of Party building efforts. Third, adhere to the Party's oversight of talent and cadre management,endeavoring to nurture a team of proficient management professionals versed in politics, adept in administration,and skilled in operations. This effort aims to provide robust organizational and talent support for the Company'stransformation and development. Fourth, commit to fostering a culture of integrity within the Party to ensurehigh-quality development. Unwaveringly reinforce the cultivation of a clean and honest party ethos,conscientiously implementing anti-corruption measures. Consolidate and deepen the outcomes of inspectionsand rectifications, utilizing the promotion of a clean and honest party culture to safeguard the Company'stransformation and development.The business plan and related situation analysis described in this annual report do not constitute theCompany's commitment to investors. The Company reminds investors to maintain due risk awareness,understand the differences between the business plan and actual operating conditions, and make prudentdecisions of investment.
3. Potential major risks and countermeasures
(1) Main business: since 2023, the Company's power plants have encountered significant challenges due tovarious factors, including the continuous increase in fuel prices and outdated unit energy efficiency. With theofficial commencement of Guangdong Province's power marketization, the 9E unit faces profitabilitydifficulties in competing with more efficient and cost-effective units. The operational outlook for theCompany's core business is expected to become increasingly challenging. The Company will persist inenhancing the operation and management of assets in stocks, proactively adapting to the demands and dynamicsof the power market, and striving to optimize the profitability of its core operations and overall operationalefficiency. Simultaneously, the Company will prioritize integrated energy services, actively investigatingdiverse business models and opportunities to transition from a traditional power generation entity to acomprehensive energy service provider. These efforts aim to foster favorable conditions for the Company'ssustained operations and robust growth.
(2) Safety management: under the market-oriented power production model, power plants will face moreflexible scheduling methods and stricter assessment policies, which entail heightened demands on the operationand maintenance of existing aging power generation equipment. The Company will continuously improve themaintenance and management level of equipment by formulating scientific and reasonable maintenance andtechnical transformation plans, investing corresponding funds and technical forces, implementing primaryresponsibility for work safety, and ensuring the safe and stable operation of production facilities;Simultaneously, the Company will enhance training and emergency preparedness, ensuring the implementationof work safety responsibilities across five key areas: responsibility of work safety, management, investment,training, and emergency response. Doing so aims to prevent any human-induced work safety accidents withinthe Company's system while maintaining the supporting role of the main peak-shaving power supply point.
(3) Fuel procurement: in 2024, the Company's natural gas purchase price will mainly depend on changes in theinternational fuel market and the sales prices set by the Company's existing suppliers. Amidst the backdrop of asluggish global economic recovery and the alleviation of tensions in the Russia-Ukraine conflict, it isanticipated that international energy prices will persist in their decline throughout 2024. However, geopoliticalrisks remain a factor of consideration. As a result, the Company's natural gas procurement costs in 2024 maycontinue to decrease compared to 2023. However, despite this decline, the overall price level remains elevated,with the potential for increased fluctuation. Furthermore, the Company may transition from a dual gas sourcestructure to a single gas source structure. This transition may have a negative impact on gas supply stability,flexibility in coordinating gas volumes, and the economic aspect of gas prices. At the same time, the operationof electricity spot trading rules and the introduction of capacity price policies have put forward higherrequirements for the stability and flexibility of natural gas supply. The Company will continue to optimizeupstream cooperation relationships, coordinate gas supply work under a single gas source, and do its best tominimize natural gas procurement costs while ensuring gas demand for power production.
(4) Land of Nanshan Power Plant: in June 2023, the company learned about the Notice of Shenzhen MunicipalBureau of Planning and Natural Resources on Issuing the 2023 Shenzhen City Urban Renewal and LandPreparation Plan on the official website of the Shenzhen Municipal Planning and Natural Resources Bureau,according to the relevant content in its appendix, 2023 Shenzhen City Urban Renewal and Land PreparationPlan still includes the Land of Nanshan Power Plant and related content. The Company will maintain closecommunication with relevant departments of Shenzhen, actively follow up on the implementation progress ofrelevant government plans, and work with legal advisors to carefully study Land of Nanshan Power Plant, studyand formulate response strategies and work plans, and make every effort to protect the listed company and allthe legitimate rights and interests of shareholders.
The Company advises investors to take note of the aforementioned major risks as well as other potentialrisks that may affect the Company, and to make prudent and informed investment decisions accordingly.XII. Reception of visitors intended for research, communication, interviews and other activities duringthe reporting period?Applicable □ Not applicable
| Reception date | Reception location | Means of reception | Visitor type | Visitor | Main content discussed and information provided | Basic information index of the survey |
| January - December 2023 | Headquarters office area of the Company | Field research | Individuals | 4 | Participate in General Meetings, receive visits from individual investors, etc. | The Company welcomes visitors in accordance with laws and regulations |
| January - December 2023 | Interactive platform and email of the Company | Written Inquiry | Individuals | 57 | Inquire about the Company's future development direction, the updates of the Company's investment matters and land-related matters, etc. | The Company offers prompt response in writing. |
| January - December 2023 | Telephone communication | Telephone communication | Individuals | 69 | Inquire about the Company's performance, market performance, land-related matters, and the update of the Company's investment matters, etc. | The Company responded in accordance with the law |
XIII. Implementation of the action plan entitled Double Improvement of Quality and ReturnWhether the Company has disclosed the action plan entitled Double Improvement of Quality and Return
□Yes ? No
Section IV Corporate governance
I. Basic situation of corporate governanceDuring the reporting period, the Company continued to enhance its corporate governance structure and improvethe modern corporate governance structure in accordance with the relevant laws, regulations, normativedocuments such as the Company Law, Securities Law, Code of Governance of Listed Companies, Stock ListingRules, and the Company's Articles of Association. The Company improved the level of standardizedgovernance and refined management, and effectively protected the legitimate rights and interests of listedcompanies, investors and employees.
1. General Meeting: the Company convened General Meetings in strict accordance with legal procedures toensure that shareholders exercise their rights in accordance with the law. During the reporting period, theCompany held one regular General Meeting and four Extraordinary General Meetings to carefully study anddeliberate on major matters requiring decision-making by the shareholders' meeting. The convening and callingprocedures of the Company's General Meetings, the attendees and the subject qualifications of the convener,voting procedures and voting results were all in compliance with the Company Law, Securities Law, Rules forGeneral Meetings of Listed Companies and other laws, regulations, normative documents and relevantprovisions of the Company's Articles of Association. The Company had neither major shareholder nor relatedparties involved in the appropriation or transfer of the Company's funds, assets and other resources in any form.
2. Board of Directors: the Board of Directors of the Company adheres to standardized operation andmanagement, implementing various measures to enhance its own development, and elevate the standardizationand scientific decision-making capabilities of the Board. During the reporting period, Board of Directors of theCompany held 2 regular meetings and 10 extraordinary meetings to meticulously deliberate and review majormatters within its scope of authority. The four special committees under the Board of Directors, namely theStrategy and Investment Management Committee, the Audit Committee, the Nomination Committee, and theRemuneration and Appraisal Committee, meticulously deliberate and review relevant matters according to theirrespective responsibilities. They provided opinions and suggestions to fully leverage the role of each committeein addressing major issues. These committees actively contributed to investment decision-making, keypersonnel adjustments, standardized management, internal auditing, and risk control, ensuring the scientificnature of the company's decision-making processes and management standardization.
3. Board of Supervisors: the Company's Board of Supervisors conscientiously performs its supervisory duties inaccordance with relevant laws and regulations, demonstrating a responsible attitude toward the Company andshareholders. During the reporting period, the Company's Board of Supervisors held 2 regular meetings and 7extraordinary meetings to supervise and inspect important matters such as the Company's financial situation,major decision-making matters, internal control, and standardized management, and expressed opinions. At thesame time, the Board of Supervisors also performed its supervisory duties by attending General Meetings andthe meetings of Board of Directors and organizing on-site inspections of the Company's subsidiaries to gain anin-depth understanding of the Company's operations and management.
4. Managers: during the reporting period, the Company's managers strictly followed relevant laws andregulations and the requirements of the Company's Articles of Association, conscientiously implemented thedecisions of the General Meeting and Board of Directors, actively organized and carried out the Company'sproduction, operation and management activities. They consistently refined the office meeting system and
internal control system, consistently optimized work processes and decision-making procedures, followed theworking principles of reasonable division of labor, enhanced cooperation and the purpose of collective decision-making on major matters, continuously improved the Company's management level, striving to achieve annualoperating goals.
5. Information disclosure and investor relations management: board of Directors of the Company strictlycomplies with the requirements of the Measures for the Administration of Information Disclosure of ListedCompanies, the Stock Listing Rules and other regulations and normative documents, and conscientiouslyperforms its information disclosure obligations. During the reporting period, the Company diligently preparedand disclosed regular and ad-hoc reports in compliance with relevant laws and regulations. A total of 122announcements were issued over the year, aiming to provide investors with comprehensive insights into theCompany's production, operations, management, and significant developments. The Company rigorouslyadheres to stipulations outlined in normative documents such as the Guidelines for the Management of InvestorRelations of Listed Companies and the Shenzhen Stock Exchange Self-Regulatory Guidelines for ListedCompanies No. 1 - Standardized Operations of Main Board Listed Companies to effectively manage investorrelations. The Company has facilitated investor engagement through on-site visits, email correspondence,investor hotlines, the Shenzhen Stock Exchange's interactive platform, and other communication channels, so asto enhance investors' understanding of the Company.
6. Insider information management: the Company strictly follows the requirements of regulations and normativedocuments such as the Information Disclosure Management Measures for Listed Companies and the Guidelinesfor the Supervision of Listed Companies No. 5 - Registration and Management System for Insiders of ListedCompanies' Insider Information, standardizes the Company's insider information management, andconscientiously submits memoranda on updates of major event and insider information files in accordance withrelevant regulations. During the reporting period, the Company neither leaked any inside information, norviolated information disclosure regulations by providing undisclosed information to major shareholders.
7. Internal control and standardized management: during the reporting period, the Company meticulouslycarried out internal control self-evaluation, internal audit and other aspects, and took active and effectivemeasures to correct existing problems and deficiencies. Meanwhile, the Company strengthened businesstraining and compliance education for directors, supervisors, senior officers and middle-level managementcadres at all levels, increased assessments, rewards and punishments, further improved standardizedmanagement levels, and strive to prevent operational management risks.Whether the Company's actual situation of corporate governance is significantly different from the laws,administrative regulations and the provisions on listed company governance issued by CSRC
□Yes ? No
There is no significant difference between the actual situation of the Company's corporate governance and thelaws, administrative regulations and regulations on the governance of listed companies issued by the CSRC.II. The Company's independent possession of assets, personnel, finance, organization, and business, etc.from its controlling shareholders and actual controllers.The Company has no controlling shareholder. The Company is completely independent of its majorshareholders in terms of personnel, assets, finance, business, and institutions, and has the ability to makeindependent decisions and operate effectively.
1. Personnel independence: the Company has an independent human resources management system, salary andwelfare system; All senior officers of the Company are full-time managers of the Company and do not holdother administrative positions other than directors and supervisors in shareholder entities; The Company recruitsand fires employees on its own within the scope approved by Board of Directors and based on operational andmanagement needs. The Company has established a comprehensive human resources management system andhas independent management rights.
2. Asset independence: the Company has independent production facilities and auxiliary systems, land use rightand housing property rights, office facilities and equipment. Within the scope of authorization by the GeneralMeeting and Board of Directors, it has the power to independently purchase and dispose of assets.
3. Financial independence: the Company has an independent Financial Management Department andaccounting system, has equipped with independent financial management and accounting personnel, hasestablished a more complete financial management system, and has independent bank accounts and taxaccounts. The Company has independent financial decision-making power within the scope authorized by theGeneral Meeting and the Board of Directors, and there is no situation in which major shareholders interfere withfinancial management or misappropriation of funds, etc.
4. Business independence: the Company independently carries out production and operating activities, and hasestablished independent and complete production, procurement and sales channels and management system.Within the scope authorized by the General Meeting and the Board of Directors, the Company operatesindependently, manages itself and is responsible for its own profits and losses.
5. Institutional independence: based on the needs of production, operation, and management, the Company hasestablished a more perfect organizational structure and management structure in accordance with modernenterprise management standards. There is no situation in which shareholders interfere with the establishmentand operation of the Company's institutions, and there is no situation in which they share the organizationalstructure with shareholders.III. Horizontal competition
□Applicable ? Not applicable
IV. Relevant information on the Annual General Meeting and Extraordinary General Meeting heldduring the reporting period
1. Information on the General Meeting during the reporting period
| Session | Type | Investor participation ratio | Convening date | Disclosure date | Resolution |
| The First Extraordinary General Meeting for 2023 | Extraordinary General Meeting | 38.36% | March 23, 2023 | March 23, 2023 | The Proposal on By-election of non-employee supervisors of the Ninth Board of Supervisors of the Company was reviewed and approved |
| 2022 Annual | Annual | 38.40% | May 5, 2023 | May 5, 2023 | 13 proposals including |
| General Meeting | General Meeting | 2022 Work Report of the Board of Directors and 2022 Work Report of Board of Supervisors were reviewed and approved | |||
| The Second Extraordinary General Meeting for 2023 | Extraordinary General Meeting | 38.32% | September 15, 2023 | September 15, 2023 | The Proposal on Hiring an Auditor for 2023 and Determining Its Remuneration was reviewed and approved |
| The Third Extraordinary General Meeting for 2023 | Extraordinary General Meeting | 12.23% | November 3, 2023 | November 3, 2023 | The Proposal on Investment in Shenzhen New Energy Storage Industry Equity Funds and Related Transactions was reviewed and approved |
| The Fourth Extraordinary General Meeting for 2023 | Extraordinary General Meeting | 38.36% | November 24, 2023 | November 24, 2023 | The Proposal on Land Acquisition and Storage of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. was reviewed and approved |
2. Preferred shareholders whose voting rights have been restored request the convening of anExtraordinary General Meeting of Shareholders
□Applicable? Not applicable
V. Directors, supervisors and senior officersI. Basic information
| Name | Gender | Age | Position | Incumbency status | Commencement of term | Expiration of term | Number of shares held at the beginning of the period (shar | Number of shares increased in the current period | Number of shares reduced in the current period (shares) | Other increases/decreases (shares) | Number of shares held at the end of the period (shares) | Reasons for increase or decrease in shares |
| es) | (shares) | |||||||||||
| Kong Guoliang | Male | 40 | Chairman | Incumbent | September 13, 2022 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Hu Ming | Male | 53 | Vice Chairman | Incumbent | September 13, 2021 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Huang Qing | Male | 52 | Director | Incumbent | June 3, 2019 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Chen Yuhui | Male | 58 | Director | Incumbent | August 28, 2017 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| General Manager | Incumbent | August 11, 2017 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | ||||
| Wu Guowen | Male | 58 | Director | Incumbent | April 25, 2016 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Executive Deputy General Manager | Incumbent | April 1, 2016 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | ||||
| Sun Huirong | Male | 40 | Director | Incumbent | April 26, 2021 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Huang Xiqin | Female | 52 | Independent director | Incumbent | August 2, 2022 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Chen Zetong | Male | 53 | Independent director | Incumbent | November 17, 2017 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 |
| Du Wei | Male | 68 | Independent director | Incumbent | November 11, 2019 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Zhai Baojun | Male | 52 | Chairman of the Board of Supervisors | Incumbent | March 23, 2023 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Li Caijun | Male | 45 | Supervisor | Incumbent | April 26, 2021 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Liao Junkai | Male | 35 | Supervisor | Incumbent | June 3, 2019 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Qian Wenhui | Male | 55 | Employee representative supervisor | Incumbent | April 26, 2021 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Lu Yindi | Female | 41 | Employee representative supervisor | Incumbent | April 26, 2021 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Li Chao | Male | 52 | Deputy general | Incumbent | September 18, 2023 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 |
| manager | ||||||||||||
| Tao Lin | Male | 56 | Deputy general manager | Incumbent | September 18, 2023 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Zhang Xiaoyin | Male | 36 | Chief Financial Officer | Incumbent | June 13, 2022 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Zou Yi | Male | 50 | Secretary of the Board of Directors | Incumbent | April 26, 2021 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Ye Qiliang | Male | 60 | Chairman of the Board of Supervisors | Leave office | November 17, 2017 | February 27, 2023 | 0 | 0 | 0 | 0 | 0 | |
| Zhang Jie | Female | 55 | Deputy general manager | Leave office | December 30, 2006 | March 20, 2023 | 17,325 | 0 | 0 | 0 | 17,325 | |
| Total | -- | -- | -- | -- | -- | -- | 17,325 | 0 | 0 | 0 | 17,325 |
Whether there was any departure of directors and supervisors and dismissal of senior officers during their termof office during the reporting period?Yes □ No
On February 27, 2023, the Board of Supervisors of the Company received a written resignation report submittedby Mr. Ye Qiliang, the Chairman of the Board of Supervisors. Mr. Ye Qiliang resigned from his position as thesupervisor of the Ninth Session of the Board of Supervisors and Chairman of the Board of Supervisors of theCompany due to reaching the statutory retirement age, and his resignation took effect from the date on whichhis resignation report was delivered to the Company's Board of Supervisors.On March 20, 2023, the Board of Directors of the Company received a written resignation report submitted byMs. Zhang Jie, the Deputy General Manager. Ms. Zhang Jie resigned from her position as Deputy GeneralManager of the Company due to reaching the statutory retirement age, and her resignation took effect from thedate on which his resignation report was delivered to the Board of Directors of the Company.Changes in directors, supervisors and senior officers of the Company?Applicable □ Not applicable
| Name | Position held | Type | Date | Reason |
| Li Chao | Deputy general manager | Appointed | September 18, 2023 | |
| Tao Lin | Deputy general manager | Appointed | September 18, 2023 | |
| Ye Qiliang | Chairman of the Board of Supervisors | Leave office | February 27, 2023 | Retired |
| Zhang Jie | Deputy general manager | Leave office | March 20, 2023 | Retired |
2. Position
The professional background and main work experience of the Company's incumbent directors, supervisors andsenior officers, as well as their main responsibilities currently
(1) Members of the Board of Directors of the Company:
Mr. Kong Guoliang: was born in 1983, is a member of the CPC, has obtained a master's degree in finance fromCentral University of Finance and Economics, and is a Certified Public Accountant and Economist. He hassuccessively served as Warrant Services Manager and Securities Representative of Shenzhen Zhenye (Group)Co., Ltd., Senior Manager and Deputy Minister of the Investment Department of Shenzhen Yuanzhi InvestmentCo., Ltd., Minister of Capital Operations Department, Minister of Investment and Development II, Minister(Director) of the Department of Strategic Studies (Office of the Board of Directors) and Secretary of the Boardof Directors of Shenzhen Capital Holdings Co., Ltd., a director of Shenzhen Zhenye (Group) Co., Ltd., adirector of China International Marine Containers (Group) Co., Ltd., General Manager of Shenzhen PingwenDevelopment Investment Co., Ltd., and Chairman of Shenzhen Yuanzhi Culture Holding Co., Ltd. Currently, heis the Chairman of Shenzhen Energy Corporation, the director of Shenzhen Energy (Hong Kong) InternationalLimited, and the director of HONG KONG NAM HOI (INTERNATIONAL) LTD. From September 2022 tothe present, he has served as the Chairman of the Company, and from November 2022 to the present, he hasserved as the Secretary of the Party Committee of the Company.Mr. Hu Ming: was born in 1970, is a member of China National Democratic Construction Association, hasobtained a master's degree, and is a Senior Engineer. From March 2003 to December 2019, he served in
government-related agencies such as Nanshan District Housing and Construction Bureau, Audit Bureau, etc.;from January 2020 to August 2021, he served as the Managing Director of Shenzhen Dashahe ConstructionInvestment Co., Ltd. and the Managing Director of Shenzhen Nanshan Anju Construction and Development Co.,Ltd.; from August 2021 to present, he has served as the Managing Director of Shenzhen Guangju Energy Co.,Ltd., and from September 2021 to present, he has served as the Vice Chairman of the Company.Mr. Huang Qing: was born in 1971, is a member of the CPC, is an Economist with a master's degree ineconomics, and graduated from Wuhan University majoring in National Economic Planning and Management.He has successively served as a Clerk, Deputy Chief Clerk and Chief Clerk of the General Office of ShenzhenMunicipal Government, Deputy Director of the Comprehensive Department of the General Office of ShenzhenMunicipal Government, Director of the Comprehensive Department of the General Office of ShenzhenMunicipal Government, Deputy Secretary of the General Office of Shanxi Provincial Government, DeputyDirector of the Shanxi Provincial Government Office in Guangzhou, member of the Party Group, etc. Currently,he is the Deputy General Manager of Shenzhen Capital Holdings Co., Ltd., and also serves as a Director ofShenzhen Energy Corporation, a Director of Shenzhen Environment and Water Investment Group Co., Ltd., aDirector of Shenzhen High-tech Investment Group Co., Ltd., and a Director of Xiong'an Green Research ThinkTank Co., Ltd., a Director of Shenzhen Institute of Building Research Co., Ltd., and Chairman of ShenzhenYixin Investment Co., Ltd.; from June 2019 to present, he has served as a director of the Company.Mr. Chen Yuhui: was born in 1965, is a member of the CPC, is a Senior Engineer, graduated from ShanghaiJiaotong University, and has obtained a bachelor's degree in ship power (undergraduate degree) and a master'sdegree in vibration, impact and noise (graduate degree). In 1989, he worked in the Maintenance Department ofShenyang Liming Gas Turbine Co., Ltd.; From December 1989 to June 2006, he worked at the YueliangwanPower Plant of Shenzhen Energy Group, where he served as the Duty Officer of the Operation Department, aSpecialist in the Chief Engineer's Office, Deputy Director of the Maintenance Department, Deputy PlantDirector, Plant Director, etc; from June 2006 to July 2014, he worked at the Eastern Power Plant of ShenzhenEnergy Group, where he served as Deputy General Manager and Operations Director; from July 2014 to August2017, he served as Chairman, General Manager and Party Branch Secretary of Zuhai Shenzhen EnergyHongwan Power Co., Ltd.; from August 2017 to present, he has served as the director and General Manager ofthe Company, and from May 2019 to present, he has served as Deputy Secretary of the Party Committee of theCompany.Mr. Wu Guowen: was born in 1965, and has obtained a bachelor's degree. Since 1994, he has worked inShenzhen Guangju Energy Co., Ltd. From 2008 to November 2010, he worked in Shenzhen Yisheng LiquidWarehousing Co., Ltd. as Deputy General Manager; from December 2010 to March 2016, he worked inShenzhen Guangju Real Estate Co., Ltd., and served successively as Executive Deputy General Manager, legalrepresentative, executive director, and General Manager; from August 2013 to March 2018, he served asemployee supervisor of Shenzhen Guangju Energy Co., Ltd.; from March 2018 to September 2021, he alsoserved as the Chairman of Shenzhen Xiefu Energy Co., Ltd.; since January 2022, he has also served as adirector of Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd.; from April 2016 to present, hehas served as a director and Executive Deputy General Manager of the Company.Mr. Sun Huirong: was born in 1983, is a member of the CPC, has obtained a master's degree, and is an Engineer.He has successively served as Senior Staff and Project Manager of Shenzhen Geotechnical Investigation &Surveying Institute Co., Ltd., Chief Investment Officer of Shenzhen Dipingxian Investment Management Co.,Ltd., and Senior Manager and Deputy Minister of Research Department and Deputy Minister of Strategic
Research and M&A and Restructuring Department, etc. of Shenzhen Capital Holdings Co., Ltd. He is currentlythe Minister of Asset Management Department of Shenzhen Capital Holdings Co., Ltd., and he also serves as adirector of China International Marine Containers (Group) Co., Ltd., a director of Shenzhen Institute ofBuilding Research Co., Ltd., a director of Shenzhen Zhenye (Group) Co., Ltd., and a director of ShenzhenMTC Co., Ltd., etc. he has served as a director of the Company since April 2021.Ms. Huang Xiqin: was born in 1971, has obtained a bachelor's degree in law and a master's degree in economicsfrom the Party School of the Central Committee of the CPC, and a master's degree in business administrationfor senior officers from Guanghua School of Management, Peking University. She started working inSeptember 1992. From September 1992 to May 1998, she served as Appraiser, Manager, etc. of ShenzhenInternational Real Estate Consulting Co., Ltd.; from May 1998 to date, she has served as executive director ofGuozhonglian Asset Appraisal Land and Real Estate Valuation Co., Ltd.; from December 2000 to date, he hasserved as Chairman of Guozhonglian Construction Engineering Management Consulting Co., Ltd.; fromNovember 2001 to present, she serves as Chairman of Guangdong Guozhonglianxing Asset Appraisal Land andReal Estate Valuation, Planning and Consulting Co., Ltd.; from February 2015 to date, she has served as adirector of Beijing Guozhonglian Auction Co., Ltd.; from January 2022 to present, she has also served as anExternal director of Guangdong Construction Engineering Group Co., Ltd. She has served as an independentdirector of the Company since August 2022.Mr. Chen Zetong: was born in 1970, has obtained a bachelor's degree in law from Southwest University ofPolitical Science and Law, a master's degree in law from the University of Hong Kong, and a doctorate in lawfrom Jilin University. From 1994 to 2003, he served as a Clerk, Assistant Judge and Judge in the Real EstateTribunal of Shenzhen Intermediate People's Court; from 2003 to 2006, he served as the Presiding Judge of theEconomic Tribunal; from July to August 2002, he interned in the High Court of Hong Kong as a JudicialAssistant; from 2006 to 2010, he served as the Deputy Chief Judge of the Seventh Civil Tribunal (CorporateLiquidation and Bankruptcy Tribunal). From 2010 to 2012, he served as a Consultant and Partner of King &Wood Mallesons in Beijing. From 2012 to present, he has served as a Senior Partner of Beijing Junzejun LawOffices. He is currently an Arbitrator of China International Economic and Trade Arbitration Commission, anArbitrator of Shenzhen Court of International Arbitration (also known as South China International Economicand Trade Arbitration Commission and Shenzhen Arbitration Commission) and an Arbitrator of HuizhouArbitration Commission. He is also an independent director of CALB Group Co., Ltd., and an independentdirector of unlisted companies, Fude Insurance Holdings Co., Ltd., Fude Sino-Life Insurance Co., Ltd. and SinoLife Asset Management Co., Ltd. He has served as an independent director of the Company from November2017 to date.Mr. Du Wei: was born in 1955, is a member of the CPC, is a Senior Engineer, has obtained doctorate, andgraduated from Institute of Plasma Physics Chinese Academy of Sciences, majoring in Nuclear Fusion andPlasma Physics. He has served as a Cadre of the National Energy Commission, Assistant Engineer and ChiefClerk of Yangtze River Basin Planning Office, Engineer and Deputy Department Manager of China NanshanDevelopment Co., Ltd., Deputy General Manager and General Manager of Shenzhen Changjiang ComputerIndustry Co., Ltd., Deputy Minister (Deputy Division Director) and Minister (Division Director) of theEvaluation and Recommendation Center for Senior Managers of the Organization Department of ShenzhenMunicipal Party Committee, Deputy General Manager of Shenzhen Expressway Development Co., Ltd.,Chairman of Shenzhen International Western Logistics Co., Ltd., General Manager of Shenzhen InternationalQianhai Industrial (Shenzhen) Co., Ltd., Senior Consultant of Shenzhen International Business Management(Shenzhen) Co., Ltd., and executive director and General Manager of Shenzhen Tianyu Freight Forwarding Co.,
Ltd. Currently, he is the executive director and General Manager of Shenzhen Borun Investment Co., Ltd. Hehas served as an independent director of the Company from November 2019 to present.
(2) Members of the Board of Supervisors of the Company:
Mr. Zhai Baojun: was born in August 1971, is a member of the CPC, and has obtained a bachelor's degree.From May 1993 to August 2001, he served as the Manager of Sales Department of Zhaobao Real EstateCompany in Baoan District, Shenzhen; from August 2001 to November 2013, he worked at Shenzhen GuangjuEnergy Co., Ltd., where he served successively as Secretary of the Youth League Committee, Armed Officer,Office Director, Director of the Party Office, and Vice Chairman of the Trade Union of the Company; fromDecember 2013 to April 2015, he served as Deputy General Manager of Shenzhen Guangju Yida HazardousChemicals Storage Co., Ltd.; from May 2015 to April 2020, he served as Deputy General Manager of ShenzhenXiefu Energy Co., Ltd.; from May 2020 to March 2023, he served as Acting General Manager of XiefuCompany; from March 2023 to present, he has served as Chairman of Board of Supervisors of the Company.Mr. Li Caijun: was born in 1978, is a member of the CPC, and has obtained a master's degree. He once servedas an Accounting Teacher in Chongqing Beibei Vocational High School, Manager of Finance Department ofChongqing Yanlong Property Development Co., Ltd., Manager of Investment Banking Department of ShenzhenEnergy Finance Co., Ltd., Head of Financial Management Department and Deputy Minister of FinancialManagement Department of Shenzhen SEZ Construction and Development Group Co., Ltd., Deputy Minister ofStrategic Research and M&A and Restructuring Department of Shenzhen Capital Holdings Co., Ltd., ChiefFinancial Officer of Shenzhen Environment and Water Investment Group Co., Ltd., and Minister of Planningand Finance Department of Shenzhen Capital Holdings Co., Ltd., etc. He is currently serves as the GeneralManager of Shenzhen Yuanzhi Culture Holding Co., Ltd. He has served as the supervisor of the Company fromApril 2021 to present.Mr. Liao Junkai: was born in 1988, is a member of the CPC, has obtained a master's degree in law, andgraduated from South China University of Technology, majoring in Master of Laws. He served successively asAssistant, Supervisor, Manager, etc. of the Risk Control Department of Shenzhen Capital Holdings Co., Ltd.;from November 2020 to November 2021, he also served as a supervisor of Shenzhen Institute of BuildingResearch Co., Ltd.; from June 2021, he has served as the General Manager of Asset Management Center ofShenzhen CLOU Electronics Co., Ltd. He has served as the supervisor of the Company from June 2019 topresent.Mr. Qian Wenhui: was born in 1968, is an Accountant, has obtained a bachelor's degree, and graduated fromChangsha Normal University of Water Resources and Electric Engineering in 1990, majoring in FinancialAccounting. From July to October 1990, he worked at Yangluo Power Plant in Wuhan. From October 1990 toAugust 2003, he worked in the Finance Department the Company; from August 2003 to October 2011, heserved as Chief Financial Officer of Zhongshan Zhongfa Electric Power Co., Ltd.; from March 2014 toDecember 2016, he served as a supervisor of Zhongshan Shenzhong Real Estate Development Co., Ltd. andZhongshan Shenzhong Real Estate Investment and Property Co., Ltd.; from November 2010 to present, he hasserved as the Director of Audit and Risk Control Department the Company; from May 2014 to present, he hasserved as a supervisor of Xiefu Company. From April 2021 to present, he has served as employee representativesupervisor of the Company.Ms. Lu Yindi: was born in 1982, is a member of the CPC, has obtained a master's degree, and graduated fromSchool of Management, Huazhong University of Science & Technology in 2008, majoring in Management
Science and Engineering. In July 2008, she joined the Global Supply Chain Management Division of FoxconnTechnology Group's iDSBG Business Group, where he served successively as Deputy Section Chief, SectionChief and Specialist of the Supply Chain Management Division. She joined the Company in August 2018, andhas successively served as Supervisor of Contracts and Bidding Management of the Safety and TechnologyDepartment, Deputy Director of the Supply Department and Director of the Supply Department of NanshanPower Plant (a subsidiary of the Company), and Deputy Director of the Company's Fuel ManagementDepartment; from June 2021 to present, she has served as the Director and Deputy Director of the Office of theBoard of Directors of the Company. From April 2021 to present, he has served as employee representativesupervisor of the Company.
(3) senior officers of the Company:
For information about Chen Yuhui, the General Manager, and Wu Guowen, the Executive Deputy GeneralManager, please refer to the aforementioned directors' resumes.Mr. Li Chao: was born in 1971, graduated from the Department of Finance of Shanxi University of Finance andEconomics, has obtained a master's degree in Business Administration of Macau University of Science andTechnology, and is a Senior Accountant. He started working in July 1994 and has once served as ProjectManager of the Audit Department of Shenzhen Dahua Certified Public Accountants, Finance Manager ofCompaq Computer Technology (China) Co., Ltd., and Chief Financial Officer of China Electricity Finance(Hong Kong) Limited; he joined Shenzhen Nanshan Power Co., Ltd. in February 2001, and he servedsuccessively as Assistant Minister, Minister, Deputy Chief Economist, Manager, and Assistant to the GeneralManager of the Corporate Development Department of the Company. He is currently the Chairman of XiefuCompany. From September 2023 to present, he has served as Deputy General Manager of the Company.Mr. Tao Lin: was born in 1967, graduated from Shanghai Jiaotong University, majoring in Power System andAutomation, has obtained a master's degree in Business Administration from the School of Economics andManagement, Tsinghua University, and is an Economist. He started working in July 1989, and has once servedas Production Officer of the Youth League Committee of Dalian Electric Power Bureau and the On-siteSecretary of the Office of Shenzhen Huaneng Economic Development Company. In January 1992, he joinedShenzhen Nanshan Power Co., Ltd., and served successively as Office Secretary, Director, Secretary of theBoard of Directors, General Manager of Shenzhen Xiefu Oil Supply Co., Ltd., General Manager of ZhongshanPower Co., Ltd. and Zhongshan Zhongfa Power Co., Ltd., and Deputy Chief Economist of the Company, andAssistant to the General Manager. He currently serves as Vice Chairman of Shenzhen Nanshan PowerZhongshan Company, Chairman of Shenzhen Nanshan Power Environmental Protection Company, andexecutive director of New Power Company. From September 2023 to present, he has served as Deputy GeneralManager of the Company.Mr. Zhang Xiaoyin: was born in 1987, is a member of the CPC, with a master's degree, has obtained abachelor's degree in Economics from Xiamen University and a master's degree in Business Administration fromWuhan University, and has obtained professional qualifications such as Senior Accountant, Certified PublicAccountant, CertifiedTaxAgent, Asset Appraiser, Financial Risk Manager (FRM), etc. He started working inOctober 2008, and has served as an Auditor of the Financial Services Group of Shenzhen Branch of Ernst &Young Huaming Certified Public Accountants, a Financial Accountant of the Planning and Finance Departmentof Wanlian Securities Co., Ltd., a Senior Manager of the Financial Management Department of ChinaResources SZITIC Trust Co., Ltd. and Head of Accounting and supervisor of China Resources Energy ServicesCompany Limited, and an Investment Director (Deputy Minister) of Yuanzhi Venture Capital (Investment
Development Department II) of Shenzhen Capital Holdings Co., Ltd. From June 2022 to present, he has servedas Chief Financial Officer of the Company.Mr. Zou Yi: was born in 1973, is a member of the CPC, is an Economist, has obtained a master's degree ineconomics. From July 1994 to September 2007, he worked at the Headquarters of Shenzhen Energy Group Co.,Ltd., and served as Business Manager of the Finance Department, Deputy Director of the Business of theCapital Office, and Business Director of the Secretariat of the Board of Directors; from September 2007 toDecember 2017, he served as the Minister of Fund Department of Shenzhen Energy Finance Co., Ltd.; fromDecember 2017 to July 2019, he served as Deputy General Manager of Shenzhen Energy Finance Co., Ltd.;from August 2017 to November 2018, he also served as a director of Huizhou SEC Fengda Electric Power Co.,Ltd.; from August 2019 to April 2021, he served as the Director of the Office of the Board of Directors of theCompany, and from July 2020 to April 2021, he also served as the Director of the Administration Departmentof the Company. From April 2021 to the present, he has served as Secretary of the Board of Directors of theCompany, and from December 2023 to the present, he has also served as the Director of the Office of the Boardof Directors.Incumbency status in the shareholder entity?Applicable □ Not applicable
| Name of incumbent | Entity name | Positions held in the shareholder entity | Commencement of term | Expiration of term | Whether to receive remuneration allowance in the shareholder entity |
| Kong Guoliang | Shenzhen Energy Corporation | Chairman | November 2, 2022 | No | |
| Huang Qing | Shenzhen Energy Corporation | Director | April 24, 2019 | No | |
| Kong Guoliang | HONG KONG NAM HOI (INTERNATIONAL) LTD | Director | September 9, 2022 | No |
Incumbency status in other entities?Applicable □ Not applicable
| Name of incumbent | Other entity name | Positions held in other entities | Commencement of term | Expiration of term | Whether to receive remuneration allowance in other entities |
| Kong Guoliang | Shenzhen Energy (Hong Kong) International Limited | Director | April 24, 2023 | No |
| Hu Ming | Shenzhen Guangju Energy Co., Ltd. | Director | August 20, 2021 | Yes | |
| General Manager | August 4, 2021 | ||||
| Huang Qing | Shenzhen Capital Holdings Co., Ltd. | Deputy general manager | September 1, 2016 | Yes | |
| Shenzhen Environment and Water Investment Group Co., Ltd. | Director | December 4, 2020 | No | ||
| Shenzhen High-tech Investment Group Co., Ltd. | Director | March 9, 2018 | No | ||
| Xiong'an Green Research Think Tank Co., Ltd. | Director | November 9, 2017 | No | ||
| Shenzhen Institute of Building Research Co., Ltd. | Director | January 31, 2018 | No | ||
| Shenzhen Yixin Investment Co., Ltd. | Chairman | October 10, 2022 | No | ||
| Wu Guowen | Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. | Director | January 28, 2022 | No | |
| Sun Huirong | Shenzhen Capital Holdings Co., Ltd. | Minister of Asset Management Department | April 18, 2021 | Yes | |
| China International Marine Containers (Group) Co., Ltd. | Director | November 14, 2022 | No | ||
| Shenzhen Institute of Building Research Co., Ltd. | Director | April 18, 2021 | No | ||
| Shenzhen Zhenye (Group) Co., Ltd. | Director | November 24, 2022 | No | ||
| Shenzhen MTC Co., Ltd. | Director | November 9, 2022 | No | ||
| Huang Xiqin | Guozhonglian Asset Appraisal Land and Real Estate Valuation Co., Ltd. | Executive Director | May 26, 2005 | Yes |
| Guozhonglian Construction Engineering Management Consulting Co., Ltd. | Chairman | December 13, 2000 | Yes | ||
| Guangdong Guozhonglianxing Asset Appraisal Land and Real Estate Valuation, Planning and Consulting Co., Ltd. | Chairman | November 26, 2001 | Yes | ||
| Beijing Guozhonglian Auction Co., Ltd. | Director | February 28, 2015 | No | ||
| Guangdong Construction Engineering Group Co., Ltd. | External director | January 2022 | Yes | ||
| Chen Zetong | Beijing Junzejun Law Offices | Senior Partner | September 1, 2012 | Yes | |
| CALB Group Co., Ltd. | Independent director | October 6, 2022 | Yes | ||
| Du Wei | Shenzhen Borun Investment Co., Ltd. | Director, General Manager | February 1, 2020 | No | |
| Li Caijun | Shenzhen Yuanzhi Culture Holding Co., Ltd. | General Manager | December 17, 2022 | Yes | |
| Liao Junkai | Shenzhen CLOU Electronics Co., Ltd. | General Manager of Asset Management Center | June 7, 2021 | Yes |
Punishments by Securities Regulatory Authorities in the past three years on the Company's directors,supervisors and senior officers who are currently in office and leave office during the reporting period
□Applicable ? Not applicable
3. Remuneration of directors, supervisors and senior officers
Decision-making procedures, basis for determination and actual payment of remuneration of directors,supervisors and senior officers
(1) Decision-making procedures: according to the relevant provisions of the Company's Articles of Association,the remuneration of directors and supervisors shall be determined by the General Meeting, and the remunerationof senior officers shall be determined by the Board of Directors.
(2) Basis for determination: at present, the Company has not yet implemented a remuneration system for non-independent directors and supervisors, and directors and employee supervisors who serve in the Company onlyreceive remuneration for the administrative positions they hold in the Company. The Board of Directors of theCompany determines the annual remuneration standards for the Company's senior officers based on factors suchas annual operating efficiency, job rank, etc. as well as taking into account the remuneration levels in theindustry, and determines the actual remuneration standards that can be paid based on the assessment and auditof the annual operating performance indicators.
(3) Actual payment: the Company pays remuneration in strict accordance with the decision-making proceduresand the basis for determining the remuneration of directors, supervisors and senior officers, and the expensesrelated to transportation, accommodation, research, inspection and attendance at meetings, etc. incurred bydirectors and supervisors due to the performance of their duties shall be borne by the Company.Remuneration of directors, supervisors and senior officers of the Company during the reporting period:
Unit: RMB 10,000
| Name | Gender | Age | Position | Incumbency status | Total pre-tax remuneration received from the Company | Whether to receive remuneration from related parties of the Company |
| Kong Guoliang | Male | 40 | Chairman | Incumbent | 85.67 | No |
| Hu Ming | Male | 53 | Vice Chairman | Incumbent | 0.00 | Yes |
| Huang Qing | Male | 52 | Director | Incumbent | 0.00 | Yes |
| Chen Yuhui | Male | 58 | Director, General Manager | Incumbent | 77.66 | No |
| Wu Guowen | Male | 58 | Director, Executive Deputy General Manager | Incumbent | 72.17 | No |
| Sun Huirong | Male | 40 | Director | Incumbent | 0.00 | Yes |
| Huang Xiqin | Female | 52 | Independent director | Incumbent | 12.98 | No |
| Chen Zetong | Male | 53 | Independent director | Incumbent | 13.33 | No |
| Du Wei | Male | 68 | Independent director | Incumbent | 14.40 | No |
| Zhai Baojun | Male | 52 | Chairman of the Board of Supervisors | Incumbent | 62.07 | No |
| Li Caijun | Male | 45 | Supervisor | Incumbent | 0.00 | Yes |
| Liao Junkai | Male | 35 | Supervisor | Incumbent | 0.00 | Yes |
| Qian Wenhui | Male | 55 | Employee Supervisor | Incumbent | 36.43 | No |
| Lu Yindi | Female | 41 | Employee Supervisor | Incumbent | 28.78 | No |
| Li Chao | Male | 52 | Deputy general manager | Incumbent | 44.81 | No |
| Tao Lin | Male | 56 | Deputy general manager | Incumbent | 46.10 | No |
| Zhang Xiaoyin | Male | 36 | Chief Financial Officer | Incumbent | 0.00 | Yes |
| Zou Yi | Male | 50 | Secretary of the Board of Directors | Incumbent | 69.66 | No |
| Ye Qiliang | Male | 60 | Chairman of the Board of Supervisors | Leave office | 18.14 | No |
| Zhang Jie | Female | 55 | Deputy general manager | Leave office | 17.64 | No |
| Total | - | - | - | - | 599.84 | - |
Other information
□Applicable ? Not applicable
VI. Directors' performance of duties during the reporting period
1. Information of the Board of Directors during the reporting period
| Session | Convening date | Disclosure date | Resolution |
| The 12th Extraordinary Meeting of the Ninth Board of Directors | January 16, 2023 | January 18, 2023 | The Proposal on Matters Related to Fixed Assets Inventory, the Proposal on Amending the Provisions on the Management of Fixed Assets and the Proposal on Using Temporarily Idle Self-owned Funds for the Deposit of Structured Deposits were reviewed and approved |
| The 13th Extraordinary Meeting of the Ninth Board of Directors | March 6, 2023 | March 7, 2023 | The Proposal on Convening the First Extraordinary General Meeting for 2023 was reviewed and approved |
| The 5th Meeting of the Ninth Board of Directors | April 4, 2023 | April 7, 2023 | 14 proposals, including the 2022 Work Report of the Board of Directors and the 2022 Work Report of the General Manager, were reviewed and approved |
| The 14th Extraordinary Meeting of the Ninth Board of Directors | April 24, 2023 | April 26, 2024 | The 2023 First Quarter Report was reviewed and approved |
| The 15th Extraordinary Meeting of the Ninth Board of Directors | June 29, 2023 | July 1, 2023 | The Proposal on Formulating and Amending 14 Systems, including the Compliance Management Measures and the General Manager's Working Rules, was reviewed and approved |
| The 6th Meeting of the Ninth Board of Directors | August 23, 2023 | August 25, 2023 | The full text and summary of the 2023 Semi-annual Report, the Proposal on the Establishment of the Company's Discipline Inspection and Supervision Office, the Proposal on the Engagement of an Auditor for 2023 and the Determination of Its Remuneration and the Proposal on Convening the Second Extraordinary General Meeting for 2023 were reviewed and approved |
| The 16th Extraordinary Meeting of the Ninth Board of Directors | September 18, 2023 | September 19, 2023 | The Proposal on the Appointment of Mr. Li Chao as the Company's Deputy General Manager, the Proposal on the Appointment of Mr. Tao Lin as the Company's Deputy General Manager and the Proposal on the Review of 2023 Operating Performance Responsibility Letter of the Company's Deputy General Manager were reviewed and approved |
| The 17th Extraordinary Meeting of the Ninth Board of Directors | October 17, 2023 | October 18, 2023 | The Proposal on Investment in Shenzhen New Energy Storage Industry Equity Fund and Related Transactions and the Proposal on Convening the Third Extraordinary General Meeting for 2023 were reviewed and approved |
| The 18th Extraordinary Meeting of the Ninth Board of Directors | October 25, 2023 | October 27, 2023 | The Proposal on Formulating the Internal Audit Management Regulations, the Proposal on Formulating the Comprehensive Risk and Internal Control Management Measures and the Authorization of Relevant Responsibilities, the Proposal on Amending the Financial Management System, the Proposal on Amending the Development Strategy and Planning Management Regulations, and the 2023 Third Quarter Report were reviewed and |
| approved | |||
| The 19th Extraordinary Meeting of the Ninth Board of Directors | November 7, 2023 | November 8, 2023 | The Proposal on Land Acquisition and Storage of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. and the Proposal on Convening the Fourth Extraordinary General Meeting for 2023 were reviewed and approved |
| The 20th Extraordinary Meeting of the Ninth Board of Directors | November 21, 2023 | The Proposal on Applying for Credit Lines from Financial Institutions by Pledge of Patents was reviewed and approved | |
| The 21st Extraordinary Meeting of the Ninth Board of Directors | December 21, 2023 | December 23, 2023 | 9 proposals, including the Proposal on Amending the Articles of Association of Shenzhen Nanshan Power Co., Ltd. and the Proposal on Amending the Rules of Procedure of the Board of Directors of Shenzhen Nanshan Power Co., Ltd. were reviewed and approved |
2. Attendance of directors at the Board of Directors and the General Meeting
| Attendance of directors at the Board of Directors and the General Meeting of Shareholders | |||||||
| Name of Director | Number of times of attendance at the Board of Directors during the reporting period | Number of times of on-site attendance at the Board of Directors | Number of times of attendance at the Board of Directors by correspondence | Number of times of attendance at the Board of Directors by proxy | Number of times of absences from the Board of Directors | Have you failed to attend the meetings of Board of Directors in person for two consecutive times | Number of times of attendance at the General Meeting |
| Kong Guoliang | 12 | 3 | 9 | 0 | 0 | No | 5 |
| Hu Ming | 12 | 2 | 9 | 1 | 0 | No | 0 |
| Huang Qing | 12 | 3 | 9 | 0 | 0 | No | 5 |
| Chen Yuhui | 12 | 3 | 9 | 0 | 0 | No | 5 |
| Wu Guowen | 12 | 3 | 9 | 0 | 0 | No | 5 |
| Sun Huirong | 12 | 2 | 9 | 1 | 0 | No | 4 |
| Huang Xiqin | 12 | 3 | 9 | 0 | 0 | No | 3 |
| Chen Zetong | 12 | 2 | 9 | 1 | 0 | No | 2 |
| Du Wei | 12 | 3 | 9 | 0 | 0 | No | 5 |
Note on failure to attend the Board of Directors in person for two consecutive timesDuring the reporting period, there is no failure to attend the Board of Directors in person for two consecutivetimes.
3. Directors' objections to matters relating to the Company
Whether the directors have raised any objections to matters relating to the Company
□Yes ? No
During the reporting period, the directors did not raise any objection to matters relating to the Company.
4. Other notes on directors' performance of duties
Whether the directors' recommendations to the Company have been adopted?Yes □ NoThe statement that the directors' proposals relating to the Company have or have not been adoptedDuring the reporting period, all directors of the company have been diligent and conscientious in carrying outtheir work in strict accordance with the relevant regulations of CSRC and Shenzhen Stock Exchange, as well asthe Company's Articles of Association, Rules of Procedure of the Board of Directors and other systems, paidclose attention to the Company's standardized operation and business situation, and carefully studied the variousproposals submitted to the Board of Directors for review based on the Company's actual situation, so as toensure scientific decision-making and safeguard the legitimate rights and interests of the Company and allshareholders.VII. Information of Special Committees under the Board of Directors during the reporting period
| Name of the Committee | Members | Number of meetings held | Convening date | Content of the meeting | Important comments and suggestions put forward | Other performance of duties | Details of the objections (if any) |
| Strategy and Investment Management Committee | Kong Guoliang, Hu Ming, Huang Qing, Chen Yuhui, Wu | 5 | January 16, 2023 | Reviewing the Proposal on Using Temporarily Idle Self-owned Funds for the Deposit of Structured Deposits | All the members present agreed to the proposal without objection | ||
| April 4, | Reviewing the 2022 | All the |
| Guowen | 2023 | Annual Performance Report of the Strategy and Investment Management Committee of the Board of Directors | members present agreed to the proposal without objection | |||
| October 17, 2023 | Reviewing the Proposal on Investment in Shenzhen New Energy Storage Industry Equity Fund and Related Transactions | All the members present agreed to the proposal without objection | 1. Affiliated committee members, Kong Guoliang, Huang Qing and Chen Yuhui abstained from voting; 2. Since the number of non-affiliated committee members attending the meeting was less than 3, the Proposal was directly submitted to the Board of Directors of the Company for review. | |||
| November 7, 2023 | Reviewing the Proposal on Land Acquisition and Storage of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. | All the members present agreed to the proposal without objection | ||||
| December 21, 2023 | Reviewing the Proposal on the Adjustment of the Partnership Agreement of Zhuhai Hengqin Zhuozhi Investment Partnership | All the members present agreed to the proposal without |
| (Limited Partnership) and the Signing of the Supplemental Agreement to the Entrusted Management Agreement | objection | ||||||
| Nomination Committee | Chen Zetong, Hu Ming, Du Wei | 2 | April 4, 2023 | Reviewing the 2022 Annual Performance Report of the Nomination Committee of the Board of Directors | All the members present agreed to the proposal without objection | ||
| September 18, 2023 | 1. Reviewing the Proposal on the Appointment of Mr. Li Chao as the Company's Deputy General Manager 2. Reviewing the Proposal on the Appointment of Mr. Tao Lin as the Company's Deputy General Manager | All members present at the meeting agreed to all the proposals without objection | |||||
| Remuneration and Assessment Committee | Huang Xiqin, Wu Guowen, Du Wei | 2 | April 4, 2023 | 1. Reviewing the 2022 Annual Performance Report of the Remuneration and Assessment Committee of the Board of Directors 2. Reviewing the Proposal on the 2023 Annual Remuneration Plan | All members present at the meeting agreed to all the proposals without objection | ||
| September 18, 2023 | Reviewing the Proposal on the Review of 2023 Operating Performance Responsibility Letter of the Company's Deputy General Manager | All the members present agreed to the proposal without objection | |||||
| Audit Committee | Huang Xiqin, Sun | 7 | January 18, 2023 | Listening to and discussing the Communication Letter | All the members present at |
| Huirong, Chen Zetong | between Certified Public Accountants and Those Charged with Governance submitted by Lixinzhonglian CPAS | the meeting have no objection | ||||
| April 4, 2023 | 1. Reviewing the 2022 Annual Financial Report 2. Reviewing the 2022 Annual Audit Report on Internal Control 3. Reviewing the Proposal on the 2022 Annual Financial Final Report 4. Reviewing the Proposal on Provision for Impairment of Assets for 2022 5. Reviewing the Proposal on the Profit Distribution Plan for 2022 6. Reviewing the Proposal on Submitting for Review the 2022 Evaluation Report on Internal Control 7. Reviewing the 2022 Annual Performance Report of the Audit Committee of the Board of Directors | All members present at the meeting agreed to all the proposals without objection | ||||
| April 24, 2023 | 1. Reviewing the 2023 First Quarter Report 2. Listening to the Financial Settlement Report for the First Quarter of 2023 3. Listening to the Work Report of Audit and Risk Control Department for the First Quarter of 2023 | All members present at the meeting agreed to all the proposals without objection | ||||
| August 23, 2023 | 1. Reviewing the full text and summary of the | All members |
| 2023 Semi-annual Report 2. Reviewing the Proposal on the Engagement of an Auditor for 2023 and the Determination of Its Remuneration 3. Listening to the 2023 Semi-annual Financial Performance Report 4. Listening to the Work Report of Audit and Risk Control Department in the Second Quarter of 2023 | present at the meeting agreed to all the proposals without objection | |||
| October 17, 2023 | Reviewing the Proposal on Investment in Shenzhen New Energy Storage Industry Equity Fund and Related Transactions | All the members present agreed to the proposal without objection | ||
| October 25, 2023 | 1. Reviewing the Proposal on Formulating the Internal Audit Management Regulations 2. Reviewing the Proposal on Formulating the Comprehensive Risk and Internal Control Management Measures and the Authorization of Relevant Responsibilities 3. Reviewing the Proposal on Amending the Financial Management System 4. Reviewing the 2023 Third Quarter Report 5. Listening to the Financial Performance Report for | All members present at the meeting agreed to all the proposals without objection |
| the Third Quarter of 2023 6. Listening to the Work Report of Audit and Risk Control Department for the Third Quarter of 2023 | ||||
| November 6, 2023 | Listening to the 2023 Audit Plan of Shenzhen Nanshan Power Co., Ltd. | All the members present at the meeting have no objection |
8. Work of the Board of Supervisors
Whether the Board of Supervisors has identified any risks to the Company in its supervisory activities duringthe reporting period
□Yes ? No
The Board of Supervisors has no objection to the supervision matters during the reporting period.
9. Employees
1. Number of employees, professional composition and education background
| Number of active employees of parent company at the end of the reporting period | 239 |
| Number of active employees of major subsidiaries at the end of the reporting period | 45 |
| Total number of active employees at the end of the reporting period | 284 |
| Total number of employees receiving remuneration in the current period | 281 |
| Number of retired employees whose the parent company and major subsidiaries have to bear the expenses | 0 |
| Professional composition | |
| Category | Number |
| Production staff | 71 |
| Salesperson | 7 |
| Technical staff | 45 |
| Financial staff | 14 |
| Administrative staff | 147 |
| Total | 284 |
| Education background | |
| Category | Number |
| High school and below | 28 |
| Junior college and technical secondary school education | 94 |
| Bachelor's degree | 137 |
| Master's degree or above | 25 |
| Total | 284 |
2. Remuneration policy
The Board of Directors implements the principle of annual remuneration quota accrual for the company basedon fixed basic remuneration. The remuneration of the Chairman shall be submitted to the General Meeting forapproval and determination after being reviewed and approved by the Board of Directors; The remuneration ofsenior officers at the level of General Manager and Deputy General Manager shall be formulated by theRemuneration and Assessment Committee of the Board of Directors and submitted to the Board of Directors forapproval and determination. The remuneration of other personnel is authorized to be managed by theCompany's management team based on the principles of "fixing salary based on position" and "getting paidaccording to work". Within the annual remuneration quota approved by the Board of Directors, the Companystrictly controls the remuneration costs, establishes a remuneration incentive mechanism linked to theperformance of the employees, formulates the remuneration standards, distribution plans, assessment andrewards and punishment methods for the personnel at all levels, and is responsible for organizing andimplementing them, so as to give full play to the role of the incentive role of the remuneration.
3. Training plan
The Company attaches great importance to employee training and has established a more complete trainingsystem. By strengthening employee training, it improves the job skills and comprehensive quality of theemployees, better meets the needs of the Company's operation and management for talent, and at the same timecultivates reserve talents for the Company's sustainable development. During the reporting period, in terms ofsafety training, the Company has organized safety education and training, emergency rescue drills, emergencyresponse capability training, etc. at all levels of the Company in accordance with the Work Safety Law andother laws and regulations in respect of safety training, so as to improve the safety awareness, accidentprevention capabilities and business level of cadres and employees at all levels. In terms of on-the-job training,the Company has adopted a combination of expatriate learning and internal training, carried out certified on-the-job training for key business and technical positions to improve the capabilities of employees to perform theirduties, and also relied on the gas turbine simulation training base to improve the practical operation andadaptability of power plant operators. In terms of training and learning in Party members, the Company's PartyCommittee and Party Branch have strictly followed the requirements of the higher Party organizations,continued to strengthen education and learning in Party members through a combination of online and offlinemethods, and implemented daily personal self-study through the distribution of books and materials. At thesame time, they have strictly implemented the "Three Meetings and One Lesson" system, enriched the form oflearning and education through diversified forms such as organizing visits to red bases, special trainings, studytours, and "Party lectures given by the Secretaries", etc., so as to ensure that the Party organization plays therole of strong backing and reliable support, and leads the majority of the Party members to play a vanguard andexemplary role.
4. Outsourcing of labor
□Applicable ? Not applicable
X. Profit distribution and capitalization of capital reserve of the CompanyThe formulation, implementation or adjustment of profit distribution policies, especially cash dividend policies,during the reporting period
□Applicable ? Not applicable
During the reporting period, the Company are profitable and the parent company's profits available fordistribution to shareholders are positive, but no cash dividend distribution plan has been put forward?Applicable □ Not applicableIn view of the fact that the Company is still facing tremendous operating pressure and is in a critical period ofsimultaneous promotion of operation and transformation and development work of assets in stock, it is difficultto meet the requirements for profit distribution conditions in the Company's Articles of Association. Therefore,the Company proposes not to make any profit distribution in 2023. The undistributed profits of the parentcompany will be mainly used to supplement the working capital and meet operational needs to ensure theachievement of operating objectives.Profit distribution and capitalization of capital reserve during the reporting period
□Applicable ? Not applicable
The Company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into sharecapital during the year.XI. Implementation of the Company's equity incentive plan, employee stock ownership plan or otheremployee incentive measures
□Applicable ? Not applicable
The company has no equity incentive plan, employee stock ownership plan or other employee incentivemeasures and their implementation during the reporting period.XII. Construction and implementation of the internal control system during the reporting period
1. Construction and implementation of internal control
In accordance with the provisions of the Basic Standards Internal Control of Enterprises and its supportingguidelines, the Company timely updates and improves the Company's internal control system, establishes a setof scientifically designed and applicable internal control system, and supervises and evaluates the Company'sinternal control management by the Audit Committee and the Internal Audit Department, which together formthe Company's risk-based internal control management organization system. Through the operation, analysisand evaluation of the internal control system, the Company has effectively prevented risks in operation andmanagement and promoted the realization of internal control objectives.
2. Details of major defects in internal control identified during the reporting period
□Yes ? No
XIII. Management and control of subsidiaries by the Company during the reporting periodThe Company has formulated the Regulations on Property Rights Management, which clarifies the relationshipbetween responsibilities, rights and benefits in the property rights management of affiliated enterprises, ensuresthat assets are clearly attributed, rights and responsibilities are clearly defined, promotes the further scientific,standardized and legalized management of property rights, and meets the needs of the Company's overalldevelopment strategy.XIV. Evaluation Report on Internal Control or Audit Report on Internal Control
1. Evaluation Report on Internal Control
| Date of disclosure of full text of Evaluation Report on Internal Control | April 12, 2024 | |
| Full-text disclosure index of Evaluation Report on Internal Control | 2023 Evaluation Report on Internal Control, cninfo.com.cn http://www.cninfo.com.cn | |
| Ratio of the total assets of the unit included in the evaluation scope to the total assets of the Company's consolidated financial statements | 93.10% | |
| Ratio of operating revenue of the unit included in the evaluation scope to operating revenue of the Company's consolidated financial statements | 100.00% | |
| Defect identification standards | ||
| Category | Financial report | Non-financial report |
| Qualitative standards | Major defects: under major business activities, many consolidated statements companies have serious defects; or a few consolidated statements companies have serious defects, but the companies with serious defects are the main participant in the major business activities; Great defects: under major business activities, a few consolidated statements companies have serious defects, and the companies with serious defects are not the main participants in the major business activities; or multiple consolidated statements | Major defects: under major business activities, many consolidated statements companies have serious defects; or a few consolidated statements companies have serious defects, but the companies with serious defects are the main participant in the major business activities; Great defects: under major business activities, a few consolidated statements companies have serious defects, and the companies with serious defects are not the main participants in the major business activities; or multiple consolidated statements |
| companies have moderate defects; or a few consolidated statements companies have moderate defects, but the companies with moderate defects are the main participants in the major business activities; General defect: in major business activities, a few companies sharing consolidated statements have moderate defect, and these companies with moderate defect are not the main participants in the major business activities; or companies share consolidated statements only have common defects; or there are no defects in internal control in major business activities, with only defects in internal control in non-major business activities. | companies have moderate defects; or a few consolidated statements companies have moderate defects, but the companies with moderate defects are the main participants in the major business activities; General defect: in major business activities, a few companies sharing consolidated statements have moderate defect, and these companies with moderate defect are not the main participants in the major business activities; or companies share consolidated statements only have common defects; or there are no defects in internal control in major business activities, with only defects in internal control in non-major business activities. | |
| Quantitative standards | Major defects: misstated amount is ≥ 0.5% of total assets in the consolidated statements; great defect: 0.2% of total assets in the consolidated statements ≤ misstated amount < 0.5% of total assets in the consolidated statements; general defect: misstated amount < 0.2% of total assets in the consolidated statements. | Major defect: amount of direct loss ≥ 0.5% of total assets in the consolidated statements; great defect: 0.2% of total assets in the consolidated statements ≤ amount of direct loss < 0.5% of total assets in the consolidated statements; general defect: amount of direct losses < 0.2% of total assets in the consolidated statements. |
| Number of major defects in financial reports | 0 | |
| Number of major defects in non-financial reports | 0 | |
| Number of great defects in financial reports | 0 | |
| Number of great defects in non-financial reports | 0 | |
2. Audit Report on Internal Control
?Applicable □ Not applicable
| The accounting firm believes that Shenzhen Nanshan Power Co., Ltd. has maintained effective financial report on internal control in all material aspects in accordance with the Basic Standards for Enterprise Internal Control and relevant regulations. | |
| Disclosure of Audit Report on Internal Control | Disclosed |
| Full-text disclosure date of the Audit Report on Internal Control | April 12, 2024 |
| Full-text disclosure index of the Audit Report on Internal Control | 2023 Audit Report on Internal Control can be found on http://www.cninfo.com.cn |
| Opinion type of the internal audit report | Standard unqualified opinion |
| Whether there are major defects in the non-financial report | No |
Whether the accounting firm issues an Audit Report on Internal Control with non-standard opinions
□Yes ? No
Whether the Audit Report on Internal Control issued by the accounting firm is consistent with the self-evaluation report of Board of Directors?Yes □ NoXV. Rectification of issues found in the self-examination of the special action on corporate governance ofthe listed companyThe self-examination and rectification of the special action on corporate governance of the listed company hasbeen completed in 2021. During the reporting period, the Company strictly followed the relevant laws andregulations, closely focused on the Company's development strategy, diligently performed its obligations andexercised its powers, conscientiously implemented various resolutions of the General Meeting, actively andeffectively carried out various tasks of Board of Directors, and effectively safeguarded the legitimate rights andinterests of the Company and all its shareholders.
Section V Environmental and social responsibilities
I. Major environmental protection issuesWhether the listed company and its subsidiaries are key pollutant-discharging units announced by theenvironmental protection department?Yes □ No
1. Policies and industry standards related to environmental protection
The Company belongs to the thermal power generation industry under the national economic classification 4411,and is currently implementing the Emission Standards of Air Pollutants for Thermal Power Plants GB-13223-2011. At the same time, its affiliated Nanshan Power Plant strictly controls nitrogen oxide emissions inaccordance with the 2018 "Shenzhen Blue" Sustainable Action Plan.
2. Administrative licenses for environmental protection
Nanshan Power Plant, the Company's subsidiary, has obtained a pollutant discharge license issued by theNanshan Administration Bureau of Shenzhen Ecological Environment Bureau, with license No.of:91440300764983799T001P. The subsidiary Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. hasobtained a pollutant discharge license issued by the Zhongshan Ecological Environment Bureau, with licenseNo. of: 914420007564567614001P.
3. Industry emission standards and specific information on the pollutant emissions involved in production andoperating activities
| Name of the company or name of its subsidiary | Types of main pollutants and specific pollutants | Names of main pollutants and specific pollutants | Emission mode | Number of discharge outlets | Distribution of discharge outlets | Emission concentration/intensity | Pollutant emission standards | Total emissions | Total approved emissions | Excessive emission |
| Shenzhen Nanshan Power Co., Ltd. | Nitrogen oxides | Nitrogen oxides | Concentrated emission of boiler and chimney | 2 | Inside the Nanshan Power Plant | <15 mg/m? | "Shenzhen Blue" emission standard <15mg/m? | 46.59 tons | 457.5 tons | None |
| Shenzhen New Power Industri | Nitrogen oxides | Nitrogen oxides | Concentrated emission of | 1 | Inside the Nanshan | <15 mg/m? | "Shenzhen Blue" emissio | 20.37 tons | 228.75 tons | None |
| al Co., Ltd. | boiler and chimney | Power Plant | n standard <15mg/m? | |||||||
| Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. | Nitrogen oxides | Nitrogen oxides | Concentrated emission of boiler and chimney | 2 | Inside the Zhongshan Nanlang Power Plant | <50 mg/m? | GB13223 | 9.65 tons | 803.06 tons | None |
4. Treatment of pollutants
Shenzhen Nanshan Power Co., Ltd. has two sets of 9E units and Shenzhen New Power Industrial Co., Ltd. hasone set of 9E unit, both of which use General Electric's DLN1.0+ low-nitrogen combustion system. ShenzhenNanshan Power (Zhongshan) Power Co., Ltd. has two sets of 9E units, which adopt General Electric's DLN1.0low-nitrogen combustion system. During the reporting period, the Company and its subsidiaries strictlycomplied with national environmental protection laws and regulations, with all pollutants discharged meetingthe national emission standards. There were no environmental pollution accidents, nor were there any penaltiesimposed by relevant departments due to major environmental problems.
5. Emergency plan for environmental emergencies
The emergency plan for sudden environmental incidents has been filed with the Guangdong ProvincialEnvironmental Protection Department and the corresponding municipal environmental protection bureau.
6. Environmental self-monitoring plan
An environmental self-monitoring plan has been prepared and reviewed by the environmental protectiondepartment; the monitoring data was disclosed timely on the environmental protection department’s website.
7. Information on investment in environmental governance and protection and payment of environmentalprotection taxThe Company attaches great importance to environmental protection and strengthens on-site management bycarrying out special tasks such as the investigation of potential environmental risks and standardizedmanagement of hazardous waste; in addition, the Company continues to increase investment on themaintenance of environmental protection facilities and improves environmental protection infrastructure. Allthese initiatives have greatly improved the level of pollution prevention and control. The Company paysenvironmental protection tax in strict accordance with the Presidential Order No. 61 of the EnvironmentalProtection Tax Law of the People's Republic of China and other relevant laws and regulations.
8. Measures taken to reduce carbon emissions during the reporting period and the results
?Applicable □ Not applicableDuring the reporting period, the Company's affiliated power plants continued to improve unit efficiency andreduce carbon emissions by taking technical transformation measures such as unit condenser technical andturbine high-pressure bypass valve technology.
9. Administrative penalties for environmental issues during the reporting period
None
10. Other environmental information that shall be disclosed
None
11. Other environmental protection related information
None
12. The Company shall comply with the disclosure requirements of power supply industry stipulated in theShenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3 - Industry InformationDisclosure.None
13. Information on environmental accidents occurring in the listed company
NoneII. Social responsibilitiesIn 2023, although the Company faced many challenges in production, operation and management, the Companyhad the courage to assume social responsibilities, actively ensured power supply when the cost and price ofpower generation were seriously inverted, and conscientiously performed its social responsibilities to the best ofits ability. In terms of work safety, the Company attached great importance to work safety by identifying themain disparities. We vigorously promoted the improvement of employees' safety responsibility awareness andsafety skills, effectively enhanced their work initiative, and maintained the "Five Nos" goal of work safety. Interms of environmental protection, the Company strictly complied with national and local environmentalprotection regulations, and always adhered to the concept of clean power generation and circular economydevelopment. All environmental protection work was effectively implemented, with environmental protectionemission meeting the requirement and no environmental pollution accidents. In terms of charity assistance, theCompany actively implemented Shenzhen's consumption poverty alleviation policy, participating inconsumption poverty alleviation with a total contribution of RMB 142,200. We fulfilled social responsibilitiesto the best of our ability.III. Consolidation and enhancing of the results of poverty eradication and rural revitalizationIn 2023, the Company actively responded to the calls of the Party Central Committee and the State Council onpoverty alleviation and rural revitalization. According to Shenzhen's consumption poverty alleviation policy, weactively participated in consumption poverty alleviation despite the difficulties encountered in the Company'sproduction and operation. The total amount of contribution regarding consumption poverty alleviation wasRMB 142,200.
Section VI Important mattersI. Fulfillment of commitments
1. Commitments made by the Company’s actual controller, shareholders, related parties, acquirers andthe Company that have been fulfilled during the reporting period and have not yet been fulfilled by theend of the reporting period
□Applicable ? Not applicable
During the reporting period, there were no commitments made by the Company’s actual controller, shareholders,related parties, acquirers and the Company that were fulfilled during the reporting period and had not yet beenfulfilled by the end of the reporting period.
2. If there is a profit forecast for the Company's assets or projects and the reporting period is still in theprofit forecast period, the company shall explain that the assets or projects have met the original profitforecast and the reasons for that.
□Applicable ? Not applicable
II. Non-operating capital occupation of the listed company by controlling shareholders and other relatedparties
□Applicable ? Not applicable
There was no non-operational occupation of funds by the controlling shareholder or other related parties of thelisted company during the reporting period.III. Illegal external guarantees
□Applicable ? Not applicable
The Company had no illegal external guarantees during the reporting period.IV. Statement of the Board of Directors on the latest "Non-standard Audit Report"
□Applicable ? Not applicable
V. Explanation of the "Non-standard Audit Report" issued by the accounting firm for the reportingperiod by the Board of Directors, Board of Supervisors and independent directors (if any)
□Applicable ? Not applicable
VI. Description of changes in accounting policies, accounting estimates or correction of major accountingerrors compared with the previous year's financial report
□Applicable ? Not applicable
The company had no changes in accounting policies, accounting estimates or correction of major accountingerrors during the reporting period.
VII. Explanation of changes in the scope of consolidated statements compared with the previous year'sfinancial report?Applicable □ Not applicableAs of December 31, 2023, there were a total of 8 entities included in the Company's consolidated financialstatements, one less than at the beginning of the period. The main reason was that during the reporting period,the business strategy of Shenzhen Nanshan Power Zhongshan Company adjusted. From the perspective of theCompany's subsequent business strategy, Shenzhen Nanshan Power (Zhongshan) Warehousing Co., Ltd., theCompany's controlling subsidiary, no longer has the necessity to survive. As a result, we applied for thecancellation of registration for the company on December 13, 2023.VIII. Appointment and dismissal of the accounting firmCurrently employed accounting firm
| Name of the domestic accounting firm | Lixinzhonglian CPAS (Special General Partnership) |
| Remuneration of the domestic accounting firm (RMB 10,000) | 73 |
| Length of audit services provided by the domestic accounting firm | 5 |
| Name of certified public accountant of domestic accounting firm | Cao Wei and Zou Yang |
| Length of audit services provided by certified public accountant of the domestic accounting firm | 5 |
Whether to hire a new accounting firm during the current period
□Yes ? No
Recruitment of accounting firm, financial consultants or sponsors for internal control audit?Applicable □ Not applicableDuring the reporting period, the Company hired Lixinzhonglian CPAS (Special General Partnership) as theCompany's accounting firm for internal control audit, and paid an audit fee of RMB 230,000.IX. Possible delisting after the disclosure of the annual report
□Applicable ? Not applicable
X. Matters related to bankruptcy and reorganization
□Applicable ? Not applicable
The Company had no bankruptcy or reorganization related matters during the reporting period.XI. Major litigation and arbitration matters
□Applicable ? Not applicable
The Company had no major litigation or arbitration matters during the reporting period.
XII. Punishment and rectification
□Applicable ? Not applicable
The Company had no penalties or rectifications during the reporting period.XIII. Integrity of the Company, its controlling shareholders and actual controllers?Applicable □ Not applicableDuring the reporting period, the Company and the its largest shareholder did not fail to fulfill the effective courtjudgments, or had large amounts of debts that were not repaid at maturity, and were in good standing in terms ofintegrity. The company had no controlling shareholder or actual controller during the reporting period.XIV. Major related transactions
1. Related transactions related to daily operations
□Applicable ? Not applicable
The Company had no related transactions related to daily operations during the reporting period.
2. Related transactions involving acquisition or sale of assets or equity
□Applicable ? Not applicable
The Company had no related transactions involving acquisition or sale of assets or equity during the reportingperiod.
3. Related transactions involving joint external investment
?Applicable □ Not applicable
| Co-investors | Relationship | Name of the investee | Main business of the investee | Registered capital of the investee (RMB 10,000) | Total assets of the investee (RMB 10,000) | Net assets of the investee (RMB 10,000) | Net profit of the investee (RMB 10,000) |
| Shenzhen Capital Holdings Co., Ltd., Shenzhen Yuanzhi Energy Storage Private Equity Fund Management Co., | Related legal person | Shenzhen New Energy Storage Industry Equity Fund Partnership (Limited Partnership) | Use private equity funds to engage in equity investments, investment management, asset management and other | 621,000 | 310,227.16 | 310,227.16 | -272.84 |
| Ltd., etc. | activities (operating activities can only be carried out after registering with the Asset Management Association of China) |
4. Related credit and debt accounts
□Applicable ? Not applicable
The Company had no related credit and debt accounts during the reporting period.
5. Transactions with financial companies that have relationship with the Company
□Applicable ? Not applicable
There were no deposits, loans, credit or other financial business between the Company and financial companieswith relationship and related parties.
6. The transactions between financial companies controlled by the Company and related parties
□Applicable ? Not applicable
There were no deposits, loans, credit or other financial business between financial companies controlled by theCompany and related parties.
7. Other major related transactions
□Applicable ? Not applicable
The Company had no other major related transactions during the reporting period.XV. Major contracts and their performance
1. Custody, contracting and lease matters
(1) Custody
□Applicable ? Not applicable
The Company had no custody during the reporting period.
(2) Contracting
□Applicable ? Not applicable
The Company had no contracting during the reporting period.
(3) Lease
□Applicable ? Not applicable
The Company had no lease during the reporting period.
2. Material guarantee
□Applicable ? Not applicable
The Company had no material guarantee during the reporting period.
3. Entrusting others to asset management
(1) Entrusted wealth management
?Applicable □ Not applicableOverview of entrusted wealth management during the reporting period
Unit: RMB 10,000
| Type | Sources of funds for entrusted wealth management | Amount of entrusted wealth management | Outstanding balance | Overdue amount not recovered | Overdue recovery of the amount of impairment accrued |
| Bank financial products | Self-owned funds | 21,001.37 | 0.00 | 0.00 | 0.00 |
| Total | 21,001.37 | 0.00 | 0.00 | 0.00 | |
Specific cases of high-risk entrusted wealth management with a large single amount or low security and poorliquidity
□Applicable ? Not applicable
The principal of entrusted wealth management is unlikely to be recovered or other cases that may lead toimpairment
□Applicable ? Not applicable
(2) Entrusted loans
□Applicable ? Not applicable
The Company had no entrusted loans during the reporting period.
4. Other major contracts
□Applicable ? Not applicable
XVI. Description of other major matters?Applicable □ Not applicable
1. Land of Nanshan Power Plant: in June 2023, the Company learned about the Notice of Shenzhen MunicipalBureau of Planning and Natural Resources on Issuing the 2023 Shenzhen Urban Renewal and Land PreparationPlan on the official website of the Shenzhen Planning and Natural Resources Bureau. According to the relevantcontent in its appendix, 2023 Shenzhen Urban Renewal and Land Preparation Plan still includes the Land ofNanshan Power Plant and related content. (For details, please see the Announcement on Shenzhen MunicipalBureau of Planning and Natural Resources Issuing the 2023 Shenzhen Urban Renewal and Land IntegrationPlan disclosed by the Company in the Securities Times and Jcninfo.com.cn, with announcement No. of: 2023-023)
2. Matters of obtaining government subsidies: on November 21, 2023, the Company received a financial reliefsubsidy of RMB 25.4 million from the Shenzhen Municipal Government dedicated for gas-fired thermal powerplants. (For details, please refer to the Announcement on Obtaining Government Subsidies disclosed by theCompany in the Securities Times and cninfo.com.cn, with announcement No. of: 2023-050)Except for the above matters, the refunds due to the Company's "Project Technical Transformation BenefitFund" had no progress or change during the reporting period.XVII. Major events of the Company's subsidiaries?Applicable □ Not applicable
1. Matters concerning the shutdown of two sets of 9E gas-fired units of Shenzhen Nanshan Power ZhongshanCompany: on November 6, 2023, the Company received Energy Bureau of Guangdong Province's Letter onMatters Related to the Shutdown of the Unit of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd.Nanlang Power Plant (YNDLH [2023] No. 672). According to the Letter, Energy Bureau of GuangdongProvince agreed to shut down two sets of 180MW gas-fired cogeneration units of the Shenzhen Nanshan Power(Zhongshan) Power Co., Ltd. Nanlang Power Plant. (For details, please see the Announcement on the Progressof the Shutdown and Retirement of Two Sets of 9E Gas-fired Units of the Company's Subsidiary ShenzhenNanshan Power (Zhongshan) Power Co., Ltd. disclosed by the Company in Securities Times and cninfo.com.cn,with announcement No. of: 2023-045)
2. Land acquisition and storage matters of Shenzhen Nanshan Power Zhongshan Company: the Company heldthe 19th Extraordinary Meeting of the Ninth Board of Directors, the 10th Extraordinary Meeting of the NinthBoard of Supervisors on November 7, 2023, and the Fourth Extraordinary General Meeting of 2023 onNovember 24, 2023. These meetings reviewed and adopted the Proposal on Land Acquisition and Storage ofShenzhen Nanshan Power (Zhongshan) Power Co., Ltd., and agreed the State-owned Land Use RightRequisition Agreement and Relocation Compensation Agreement signed by Shenzhen Nanshan PowerZhongshan Company and Zhongshan Cuiheng New District Management Committee. On December 15, 2023,the company disclosed the "Progress Announcement on Land Acquisition and Storage Related Matters of theControlling Subsidiary Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. " Shenzhen Nanshan PowerZhongshan Company and Cuiheng New District Management Committee formally signed the " state-ownedland use right Requisition Agreement" and " relocation compensation agreement ". On December 20, 2023, theCompany disclosed the Announcement on the Progress of Matters Related to Land Acquisition and Storage ofthe Company's Subsidiary Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd., indicating that Shenzhen
Nanshan Power Zhongshan Company received the first payment of the first phase of compensation in theamount of RMB 104,000,000. (For details, please refer to the Announcement on Resolutions of the 19thExtraordinary Meeting of the Ninth Board of Directors, the Announcement on Resolutions of the 10thExtraordinary Meeting of the Ninth Board of Supervisors, Announcement on Matters Related to LandAcquisition and Storage of the Company's Subsidiary Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd.,Announcement on Resolutions of the Fourth Extraordinary General Meeting in 2023, and Announcement on theProgress of Matters Related to Land Acquisition and Storage of the Company's Subsidiary Shenzhen NanshanPower (Zhongshan) Power Co., Ltd. disclosed by the Company in Securities Times and cninfo.com.cn, withannouncement No. of: 2023-046, 047, 048, 051, 52, 53)
Section VII Changes in shares and shareholdersI. Changes in shares
1. Changes in shares
Unit: share
| Before the change | Increase or decrease in the change (+, -) | After the change | |||||||
| Quantity | Ratio | Issuance of new shares | Bonus shares | Provident fund conversion | Others | Subtotal | Quantity | Ratio | |
| I. Shares subject to selling restrictions | 12,994 | 0.0022% | 12,994 | 0.0022% | |||||
| 1. State shareholding | |||||||||
| 2. State-owned legal person shareholding | |||||||||
| 3. Other domestic shareholdings | 12,994 | 0.0022% | 12,994 | 0.0022% | |||||
| Including: domestic legal person shareholding | |||||||||
| Domestic natural person shareholding | 12,994 | 0.0022% | 12,994 | 0.0022% | |||||
| 4. Foreign shareholding | |||||||||
| Including: foreign | |||||||||
| legal person shareholding | |||||||||
| Foreign natural person shareholding | |||||||||
| II. Shares without selling restrictions | 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. Domestic-listed foreign shares | 263,854,446 | 43.7742% | 263,854,446 | 43.7742% | |||||
| 3. Overseas-listed foreign shares | |||||||||
| 4. Others | |||||||||
| III. Total number of shares | 602,762,596 | 100.00% | 602,762,596 | 100.00% |
Reasons for changes in shares
□Applicable ? Not applicable
Approval status of changes in shares
□Applicable ? Not applicable
Transfer status of changes in shares
□Applicable ? Not applicable
The impact of changes in shares on basic earnings per share and diluted earnings per share, net assets per shareattributable to the Company's ordinary shareholders, and other financial indicators in the most recent year andthe most recent period
□Applicable ? Not applicable
Other information that the Company deems necessary or that securities regulators require to be disclosed
□Applicable ? Not applicable
2. Changes in shares with selling restrictions
□Applicable ? Not applicable
II. Issuance and listing of securities
1. Securities issuance (excluding preferred shares) during the reporting period
□Applicable ? Not applicable
2. Explanation of changes in the Company's total number of shares and shareholder structure, andchanges in the Company's asset and liability structure
□Applicable ? Not applicable
3. Existing internal employee shares
□Applicable ? Not applicable
III. Shareholders and actual controllers
1. Number of the Company's shareholders and shareholding status
Unit: share
| Total number of ordinary shareholders at the end of the reporting period | 48,884 | Total number of ordinary shareholders at the end of the previous month before the annual report disclosure date | 54,471 | Total number of preferred shareholders whose voting right were restored at the end of the reporting period (if any) (see Note 8) | 0 | Total number of preferred shareholders whose voting right were restored at the end of the previous month before the annual report disclosure date (if any) (see Note 8) | 0 |
Shareholding status of shareholders holding more than 5% of the shares or the top 10 shareholders (excluding
shares lent through refinancing)
| Name of shareholder | Nature of shareholder | Shareholding ratio | Number of shares held at the end of the reporting | Increases and decreases during the reporting | Number of shares held with selling restrictions | Number of shares with selling restrictions | Pledge, marking or freezing | |
| Share status | Quantity | |||||||
| period | period | |||||||
| 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 Corporation | State-owned legal person | 10.80% | 65,106,130 | 65,106,130 | ||||
| BOCI SECURITIES LIMITED | Overseas legal person | 1.91% | 11,522,048 | -2,586,990 | 11,522,048 | |||
| Zeng Ying | Domestic natural person | 1.19% | 7,159,600 | 7,159,600 | ||||
| China Merchants Securities (Hong Kong) Co., Ltd. | Overseas legal person | 0.88% | 5,330,854 | -99,874 | 5,330,854 | |||
| Meiyi Investment Real Estate Co., Ltd. | Domestic non-state-owned legal persons | 0.87% | 5,223,200 | 5,223,200 | ||||
| LISHERYNZHANMING | Overseas natural person | 0.66% | 4,005,959 | 1,441,759 | 4,005,959 | |||
| Haitong International Securities Company | Overseas legal person | 0.65% | 3,908,357 | 3,908,357 |
| Limited-Account Client | ||||||||
| Huang Yilong | Domestic natural person | 0.64% | 3,866,500 | 3,866,500 | ||||
| Strategic investors or general legal persons becoming the top 10 shareholders due to allotment of new shares (if any) (see Note 3) | None | |||||||
| Explanation of the above-mentioned shareholders' relationship or concerted actions | 1. Shenzhen Energy Corporation holds 100% equity of HONG KONG NAM HOI (INTERNATIONAL) LTD 2. The Company does not know whether the other above-mentioned public shareholders are in relationship or are persons in concerted actions | |||||||
| Explanation of the circumstances in which the above-mentioned shareholders involve entrusted voting right and abstention from voting right | None | |||||||
| Special note on the existence of a special repurchase account among the top 10 shareholders (if any) (see Note 10) | None | |||||||
| Shareholding status of the top 10 shareholders without selling restrictions | ||||||||
| Name of shareholder | Number of shares without selling restrictions held at the end of the reporting period | Type of shares | ||||||
| Type of shares | Quantity | |||||||
| HONG KONG NAM HOI (INTERNATIONAL) LTD | 92,123,248 | Domestic listed foreign shares | 92,123,248 | |||||
| Shenzhen Guangju Industrial Co., Ltd. | 73,666,824 | RMB ordinary shares | 73,666,824 | |||||
| Shenzhen Energy | 65,106,130 | RMB | 65,106,13 | |||||
| Corporation | ordinary shares | 0 | |
| BOCI SECURITIES LIMITED | 11,522,048 | Domestic listed foreign shares | 11,522,048 |
| Zeng Ying | 7,159,600 | Domestic listed foreign shares | 7,159,600 |
| China Merchants Securities (Hong Kong) Co., Ltd. | 5,330,854 | Domestic listed foreign shares | 5,330,854 |
| Meiyi Investment Real Estate Co., Ltd. | 5,223,200 | RMB ordinary shares | 5,223,200 |
| LISHERYNZHANMING | 4,005,959 | Domestic listed foreign shares | 4,005,959 |
| Haitong International Securities Company Limited-Account Client | 3,908,357 | Domestic listed foreign shares | 3,908,357 |
| Huang Yilong | 3,866,500 | RMB ordinary shares | 3,866,500 |
| Explanation of relationship or concerted action among the top 10 shareholders of tradable shares without selling restrictions, and between the top 10 shareholders of tradable shares without selling restrictions and the top 10 shareholders | 1. Shenzhen Energy Corporation holds 100% equity of HONG KONG NAM HOI (INTERNATIONAL) LTD 2. The Company does not know whether the other above-mentioned public shareholders are in relationship or are persons in concerted actions | ||
| Description of the top 10 ordinary | None | ||
shareholders'participation in margintrading and securitieslending business (ifany) (see Note 4)
The top ten shareholders participating share lending through refinancing
□Applicable ? Not applicable
Changes in the top 10 shareholders compared with the previous period?Applicable □ Not applicable
Unit: share
| Changes in the top 10 shareholders compared with the end of the previous period | |||||
| Shareholder name (full name) | New/withdrawal during the reporting period | Number of shares lent through refinancing and not yet returned at the end of the period | Number of shares held in shareholders' general accounts and credit accounts, and shares lent through refinancing and not yet returned at the end of the period | ||
| Total quantity | Ratio to total share capital | Total quantity | Ratio to total share capital | ||
| Li Baoqin | Withdrawal | 3,048,150 | 0.51% | ||
| LISHERYNZHANMING | New | 4,005,959 | 0.66% | ||
Whether the Company's top 10 ordinary shareholders and the top 10 ordinary shareholders without sellingrestrictions conducted agreed repurchase transactions during the reporting period
□Yes ? No
The the Company's top 10 ordinary shareholders and the top 10 ordinary shareholders without sellingrestrictions did not engage in any agreed repurchase transactions during the reporting period.
2. Information on the Company's controlling shareholder
Nature of controlling shareholder: noneType of controlling shareholders: noneExplanation that the Company has no controlling shareholderCurrently, the Company has no controlling shareholder as defined in the Company Law and Stock Listing Rules.Changes in controlling shareholders during the reporting period
□Applicable ? Not applicable
The Company's controlling shareholder did not change during the reporting period.
3. The Company's actual controller and its persons acting in concert
Nature of actual controller: no actual controllerType of actual controller: do not existExplanation of the fact that the Company has no actual controllerAt present, the Company does not meet the criteria for identifying actual controller of a listed company asstipulated in the Company Law, the Measures for the Administration of Acquisition of Listed Companies andthe Stock Listing Rules.Whether there are shareholders with a shareholding ratio of more than 10% at the Company's ultimatecontrolling level
□Yes? No
Changes in actual controller during the reporting period
□Applicable? Not applicable
The Company's actual controller did not change during the reporting period.Block diagram of the Company's property rights and control relationship
Actual controller controls the Company through trust or other asset management methods
□Applicable ? Not applicable
4. Cumulative number of pledged shares by the Company's controlling shareholder or largestshareholder and persons acting in concert accounts for 80% of the Company's shares held by them.
□Applicable ? Not applicable
Shenzhen State-owned Assets Supervisionand Administration CommissionShenzhen Capital Holdings Co., Ltd.
Shenzhen Capital Holdings Co., Ltd.Shenzhen Energy Corporation
Shenzhen Energy Corporation
Shenzhen Energy (Hong Kong) International
Limited
Shenzhen Energy (Hong Kong) International
LimitedHONG KONG NAM HOI(INTERNATIONAL) LTD
HONG KONG NAM HOI(INTERNATIONAL) LTDShenzhen Nanshan Power Co., Ltd.
Shenzhen Nanshan Power Co., Ltd.Shenzhen Nanshan District State-ownedAssets Supervision and Management Bureau
Shenzhen Nanshan District State-ownedAssets Supervision and Management BureauShenzhen Shenhuitong Investment Holding
Co., Ltd.
Shenzhen Shenhuitong Investment Holding
Co., Ltd.
Shenzhen Kehuitong Investment Holding
Co., Ltd.
Shenzhen Kehuitong Investment Holding
Co., Ltd.Shenzhen Guangju Investment Holdings (Group)
Co., Ltd.
Shenzhen Guangju Investment Holdings (Group)
Co., Ltd.Shenzhen Guangju Energy Co., Ltd.
Shenzhen Guangju Energy Co., Ltd.Shenzhen Guangju Industrial Co., Ltd.
Shenzhen Guangju Industrial Co., Ltd.Shenzhen Huitong Financial Holdings FundInvestment Co., Ltd.
5. Other legal person shareholders holding more than 10% of the shares
?Applicable □ Not applicable
| Name of legal person shareholder | Legal representative/company principal | Date of establishment | Registered capital | Main business or management activities |
| HONG KONG NAM HOI (INTERNATIONAL) LTD | Kong Guoliang | May 14, 1985 | HKD 15.33 million | Investment holdings |
| Shenzhen Guangju Industrial Co., Ltd. | Deng Zhenwu | May 31, 1989 | RMB 111.11 million | Establishing industries and investing in power (specific projects will be declared separately), etc. |
| Shenzhen Energy Corporation | Kong Guoliang | July 15, 1985 | RMB 230,971,224 | Development, production, purchase and sale of various conventional energy sources (including electricity, heat, coal, oil and gas) and new energy sources |
6. Shareholding restrictions and reductions of controlling shareholders, actual controllers, reorganizersand other commitment entities
□Applicable ? Not applicable
IV. Specific implementation of share repurchases during the reporting periodProgress of implementation in share repurchase
□Applicable ? Not applicable
Implementation progress of reducing repurchased shares in centralized bidding transaction method
□Applicable ? Not applicable
Section VIII Preferred shares
□Applicable ? Not applicable
There were no preferred shares in the Company during the reporting period.
Section IX Bonds
□Applicable ? Not applicable
Section X Financial report
| Type of audit opinion | Unqualified opinion |
| Signing date of audit report | April 10, 2024 |
| Name of audit agency | Lixinzhonglian CPAS (Special General Partnership) |
| Audit Report No. | LXZLSZ [2024] No.D-0139 |
| Name of certified public accountant | Cao Wei and Zou Yang |
(See the attached audit report for details)
Audit Report
LXZLSZ [2024] No.D-0139
To the Shareholders of Shenzhen Nanshan Power Co., Ltd.,I. Audit opinionsWe have audited the accompanying financial statements of Shenzhen Nanshan Power Co., Ltd. (hereinafterreferred to as Shenzhen Nanshan Power), which comprise the consolidated and parent company's balance sheetas at December 31, 2023, the consolidated and parent company's income statement, the consolidated and parentcompany's statement of cash flows, the consolidated and parent company's statement of changes in shareholders'equity for the year then ended, and the notes to the financial statements.In our opinion, the financial statements attached are prepared, in all material respects, in accordance with theAccounting Standards for Business Enterprises, and present fairly the consolidated and parent company'sfinancial positions as at December 31, 2023 and the consolidated and parent company's operating results andcash flows for the year then ended.II. Basis for OpinionWe conducted our audit in accordance with Auditing Standards for Certified Public Accountants in China. Ourresponsibilities under those standards are further described in the "Auditors' Responsibilities for the Audit of theFinancial Statements" of this audit report. According to the Code of Ethics for Certified Public Accountants ofChina, we are independent of Shenzhen Nanshan Power, and we have fulfilled other responsibilities in theaspect of code of ethics. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.III. Key audit mattersKey audit matters are those matters that, in our professional judgment, are of most significance in our audit ofthe financial statements for the current period. These matters were addressed in the context of our audit of thefinancial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinionon these matters.
| Key audit matters | How these matters were addressed in the audit |
| (I) Revenue recognition | |
| For details accounting policies for revenue recognition and analysis of revenue, please consolidated financial statements to accounting policies described in Note (XXV) of "III. Significant accounting policies and accounting estimates" of the Notes to the Consolidated Financial | The audit procedures related to the recognition of operating revenue include the following procedures: 1. Evaluating the design and operating effectiveness of key internal control related to revenue recognition; 2. For power production and sales revenue, we obtained and checked the electricity sales contract |
| Statements and Note (XXXIX) of "V. Notes to consolidated financial statements". In 2023, Shenzhen Nanshan Power consolidated operating revenue of RMB 589,780,190.71, with a decrease of 15.05% from the previous period. As operating revenue is one of the Company's key performance indicators and there is an inherent risk that the time point of revenue recognition may be manipulated to meet specific goals or expectations, we identified recognition of operating revenue as a key audit matter. | and settlement statements, and confirmed the balance of accounts receivable at the end of the period and the current operating revenue, and confirmed the authenticity of the electricity sales revenue in combination with the post-period accounts receivable; 3. For revenue from integrated energy services, we obtained and reviewed the Company's accounting policies, understood and evaluated the management's method of determining the completion progress, evaluated the rationality of time point of revenue recognition, and determined the rationality of the project completion progress by checking external evidence such as project contracts, project delivery, acceptance settlement, etc., and confirmed the authenticity and completeness of revenue from integrated energy services in combination with the confirmation reply and post-period collection; 4. Performing substantive analysis procedures on operating revenue and gross margin to determine the rationality of changes in operating revenue and gross margin the current period; 5. Performing a cut-off testing on operating revenue to evaluate whether operating revenue has been included in the appropriate accounting period. 6. Checking whether information related to operating revenue has been properly reported in the financial statements |
| (II) Asset impairment | |
| Please refer to accounting policies described in Note (XX) of "III. Significant accounting policies and accounting estimates " in the notes to the financial statements. As of December 31, 2023, the book value of inventories, fixed assets and construction in progress in consolidated financial statements of Shenzhen Nanshan Power totaled RMB 661,089,840.61, accounting for 32.26% of the consolidated total assets, which is an important part of Shenzhen Nanshan Power's assets. | Our audit procedures regarding asset impairment include: 1. Evaluating and testing the design and implementation effectiveness of internal control related to asset impairment; 2. Obtaining accounting policies for asset impairment, check whether the provision method of asset impairment complies with regulations, and obtain and review the details of provision for asset impairment made by the management; 3. Supervising the inventory taking to check the quantity and status of inventories, and implement |
IV. Other informationShenzhen Nanshan Power's management (hereinafter referred to as the management) is responsible for otherinformation. Other information includes information included in the relevant documents constituting the 2023Annual Report, but excludes the financial statements and our audit report.Our opinion on the financial statements does not cover the other information and we do not and will not expressany form of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the other informationidentified above and, in doing so, consider whether the other information is materially inconsistent with thefinancial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.If we determine, based on the work we have performed, that other information is materially misstated, weshould report that fact. We have nothing to report in this regard.V. Responsibilities of the Management and Those Charged with Governance for the Financial StatementsThe management is responsible for preparing the financial statements in accordance with the requirements ofthe Accounting Standards for Business Enterprises to achieve a fair presentation, and for designing,implementing and maintaining internal control that is necessary to ensure that the financial statements are freefrom material misstatements, whether due to frauds or errors.In preparing the financial statements, the Management is responsible for assessing the Shenzhen NanshanPower’s going-concern ability, disclosing the matters related to going concern and using the going-concernassumption unless the Management either intends to liquidate Shenzhen Nanshan Power or to cease operations,or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing Shenzhen Nanshan Power's financial reportingprocess.VI. Auditors' Responsibilities for the Audit of the Financial Statements
| Shenzhen Nanshan Power's management has evaluated whether there are indications of impairment of the above assets. If indications of impairment are identified, the management calculates recoverable amount of the individual asset or the asset group to which it belongs, and conducts impairment test on it by comparing recoverable amount with book value. Since Shenzhen Nanshan Power's management needs to use significant accounting estimates and judgments when determining the estimated recoverable amount of assets, which have significant affected amount, we determine the asset impairment loss as a key audit matter. | inventory supervision procedures for long-term assets on sample basis to understand whether the assets are facing problems such as backward technology, long-term idleness, and low load rate; 4. Using the work of external appraiser experts to conduct a comprehensive evaluation of the external appraiser's qualifications, competencies, assessment methods and various parameters used in the assessment. |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an audit report that includes our opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordancewith the audit standards will always detect a material misstatement when it exists. Misstatements may arisefrom fraud or error and are generally considered material if separate or aggregated misstatements are reasonablyexpected to possibly influence the economic decisions made by the users of financial statements on the basis ofthese financial statements.In the process of performing audit work in accordance with the auditing standards, we use professionaljudgment and maintain professional skepticism. Meanwhile, we also:
(1) Identifying and assessing the risks of material misstatement of the financial statements, whether due to fraudor error, design and perform audit procedures responsive to those risks, and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,intentional omissions, misrepresentations, or the override of internal control.
(2) Understanding internal control related to the audit in order to design audit procedures that are appropriate inthe circumstances.
(3) Evaluating the appropriateness of accounting policies used by and the reasonableness of accountingestimates and related disclosures made by the management.
(4) Drawing conclusions on the appropriateness of the management's use of going concern basis. Meanwhile,according to the audit evidence acquired, the management comes to conclusion on matters which may causesignificant misgiving against the going-concern ability of Shenzhen Nanshan Power or whether the saidsituation exists material uncertainty or not. If we conclude that a material uncertainty exists, auditing standardsrequire us to draw the attention of users of the financial statements to the related disclosures in financialstatements in our audit report; If such disclosures are inadequate, we should modify our opinion. Ourconclusions are based on the information available as of the date of our audit report. However, future events orconditions may cause Shenzhen Nanshan Power to cease to continue as a going concern.
(5) Evaluating the overall presentation, structure and content of financial statements, and evaluate whetherfinancial statements fairly reflect relevant transactions and events.
(6) Obtaining sufficient appropriate audit evidence regarding the financial information of the entities or businessactivities within Shenzhen Nanshan Power to express an opinion on the financial statements. We are responsiblefor directing, supervising and performing group audits and take full responsibility for our audit opinions.We communicate with those charged with governance regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internal control thatwe identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and other matters thatmay reasonably be thought to bear on our independence, and where applicable, related safeguards.From the matters communicated with those charged with governance, we determine those matters that are ofmost significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor's report, unless these matters are forbidden by laws andregulations to be disclosed or in extremely rare circumstances, when the negative impact arising from thereasonable and expected communication about a certain matter in a audit report exceeds the public interestbenefits arising therefrom, we determine that such matter should not be communicated in the auditors' report.
Lixinzhonglian CPAS (Special General Partnership) Certified Public Accountant of China:Cao Wei
(Engagement Partner)
Certified Public Accountant of China:Zou Yang
Tianjin, China April 10, 2024
Financial Statements
1. Consolidated Balance Sheet
Prepared by: Shenzhen Nanshan Power Co., Ltd.
Unit: RMB
| Item | December 31, 2023 | January 1, 2023 |
| Current assets: | ||
| Monetary funds | 316,188,782.49 | 675,496,266.40 |
| Balances with clearing companies | ||
| Loans to banks and other financial institutions | ||
| Financial assets held for trading | 226,000,000.00 | 440,013,571.10 |
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 111,975,251.10 | 135,833,492.64 |
| Receivables financing | ||
| Advances to suppliers | 26,869,175.59 | 45,448,287.86 |
| Premiums receivable | ||
| Reinsurance accounts receivable | ||
| Reinsurance contract reserves receivable | ||
| Other receivables | 19,233,117.52 | 18,314,003.84 |
| Including: interest receivable | ||
| Dividends receivable | ||
| Financial assets purchased under resale agreements | ||
| Inventories | 86,158,251.16 | 85,279,298.35 |
| Contract assets | 88,000.00 | 217,009.58 |
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | 232,865,968.63 | 188,248,840.44 |
| Total current assets | 1,019,378,546.49 | 1,588,850,770.21 |
| Non-current assets: | ||
| Disbursement of loans and advances | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 90,001,176.04 | 83,496,098.24 |
| Other investments in equity instruments | 300,615,000.00 | 300,615,000.00 |
| Other non-current financial assets | ||
| Investment properties | 1,664,566.60 | 1,833,344.20 |
| Fixed assets | 571,482,734.35 | 591,290,204.31 |
| Construction in progress | 3,448,855.10 | 4,861,062.16 |
| Productive biological assets |
| Oil and gas assets | ||
| Right-of-use assets | 2,266,946.42 | 7,707,617.90 |
| Intangible assets | 19,285,629.03 | 19,799,355.12 |
| Development expenses | ||
| Goodwill | ||
| Long-term deferred expenses | 3,891,832.93 | 1,219,129.18 |
| Deferred tax assets | 1,172,366.49 | 1,172,366.49 |
| Other non-current assets | 36,157,735.24 | 5,371,398.18 |
| Total non-current assets | 1,029,986,842.20 | 1,017,365,575.78 |
| Total assets | 2,049,365,388.69 | 2,606,216,345.99 |
| Current liabilities: | ||
| Short-term borrowings | 341,237,886.72 | 879,957,857.44 |
| Borrowing from the central bank | ||
| Loans from banks and other financial institutions | ||
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | 137,298,902.17 | |
| Accounts payable | 4,342,166.50 | 5,227,836.22 |
| Advances from customers | ||
| Contract liabilities | ||
| Financial assets sold under repurchase agreements | ||
| Absorption of deposits and interbank deposits | ||
| Receivings from vicariously traded securities | ||
| Receivings from vicariously sold securities | ||
| Employee compensation payable | 46,238,982.57 | 29,296,815.07 |
| Taxes payable | 3,089,330.47 | 5,107,666.73 |
| Other payables | 13,973,447.42 | 22,997,466.80 |
| Including: interest payable | ||
| Dividends payable | ||
| Handling charges and commissions payable | ||
| Reinsurance accounts payable | ||
| Liabilities held for sale | ||
| Non-current liabilities maturing within one year | 3,926,326.45 | 6,014,119.95 |
| Other current liabilities | 21,600.00 | |
| Total current liabilities | 412,808,140.13 | 1,085,922,264.38 |
| Non-current liabilities: | ||
| Reserves for insurance contract | ||
| Long-term borrowings | 58,829,426.30 | 28,019,758.68 |
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 2,262,160.03 |
| Long-term payables | ||
| Long-term employee compensations payable | ||
| Estimated liabilities | 15,000,000.00 | 15,000,000.00 |
| Deferred income | 67,869,348.07 | 82,145,596.60 |
| Deferred tax liabilities | ||
| Other non-current liabilities | 104,045,112.54 | 47,511.72 |
| Total non-current liabilities | 245,743,886.91 | 127,475,027.03 |
| Total liabilities | 658,552,027.04 | 1,213,397,291.41 |
| Owners' equity: | ||
| Share capital | 602,762,596.00 | 602,762,596.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 362,770,922.10 | 362,770,922.10 |
| Less: treasury shares | ||
| Other comprehensive income | -2,500,000.00 | -2,500,000.00 |
| Special reserves | ||
| Surplus reserves | 332,908,397.60 | 332,908,397.60 |
| General risk reserves | ||
| Undistributed profits | 163,346,776.24 | 159,187,979.14 |
| Total of owners' equity attributable to the parent company | 1,459,288,691.94 | 1,455,129,894.84 |
| Minority interests | -68,475,330.29 | -62,310,840.26 |
| Owners' equity | 1,390,813,361.65 | 1,392,819,054.58 |
| Total Liabilities and owners' equity | 2,049,365,388.69 | 2,606,216,345.99 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang XiaoyinHead of the Finance Department: Lin Xiaojia
2. Parent Company's Balance Sheet
Unit: RMB
| Item | December 31, 2023 | January 1, 2023 |
| Current assets: | ||
| Monetary funds | 288,209,271.60 | 652,703,545.21 |
| Financial assets held for trading | 226,000,000.00 | 440,013,571.10 |
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 26,981,407.91 | 47,995,982.82 |
| Receivables financing | ||
| Advances to suppliers | 15,384,546.45 | 29,715,650.29 |
| Other receivables | 714,553,901.02 | 851,189,111.89 |
| Including: interest receivable | ||
| Dividends receivable | ||
| Inventories | 79,966,182.19 | 79,504,053.32 |
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | 225,282,791.79 | 180,501,049.31 |
| Total current assets | 1,576,378,100.96 | 2,281,622,963.94 |
| Non-current assets: | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 495,642,748.40 | 352,171,153.27 |
| Other investments in equity instruments | 160,615,000.00 | 160,615,000.00 |
| Other non-current financial assets | ||
| Investment properties | ||
| Fixed assets | 270,785,343.05 | 279,587,315.87 |
| Construction in progress | 2,267,334.95 | 1,976,173.28 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 2,266,946.42 | 7,707,617.90 |
| Intangible assets | 159,361.27 | 193,607.19 |
| Development expenses | ||
| Goodwill | ||
| Long-term deferred expenses | 699,249.25 | 1,106,385.13 |
| Deferred tax assets | ||
| Other non-current assets | 857,135.84 | |
| Total non-current assets | 933,293,119.18 | 803,357,252.64 |
| Total assets | 2,509,671,220.14 | 3,084,980,216.58 |
| Current liabilities: | ||
| Short-term borrowings | 341,237,886.72 | 285,705,357.36 |
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | 737,298,902.17 | |
| Accounts payable | 896,652.87 | 3,759,009.04 |
| Advances from customers | ||
| Contract liabilities | ||
| Employee compensation payable | 7,012,680.38 | 18,905,560.54 |
| Taxes payable | 1,413,720.40 | 1,203,569.67 |
| Other payables | 203,625,916.75 | 170,451,537.10 |
| Including: interest payable | ||
| Dividends payable | ||
| Liabilities held for sale | ||
| Non-current liabilities maturing within one year | 3,926,326.45 | 6,014,119.95 |
| Other current liabilities | ||
| Total current liabilities | 558,113,183.57 | 1,223,338,055.83 |
| Non-current liabilities: | ||
| Long-term borrowings | 58,829,426.30 | 28,019,758.68 |
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 2,262,160.03 | |
| Long-term payables | ||
| Long-term employee compensations payable | ||
| Estimated liabilities | ||
| Deferred income | 48,280,623.30 | 48,978,528.78 |
| Deferred tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 107,110,049.60 | 79,260,447.49 |
| Total liabilities | 665,223,233.17 | 1,302,598,503.32 |
| Owners' equity: | ||
| Share capital | 602,762,596.00 | 602,762,596.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 289,963,039.70 | 289,963,039.70 |
| Less: treasury shares | ||
| Other comprehensive income | ||
| Special reserves | ||
| Surplus reserves | 332,908,397.60 | 332,908,397.60 |
| Undistributed profits | 618,813,953.67 | 556,747,679.96 |
| Owners' equity | 1,844,447,986.97 | 1,782,381,713.26 |
| Total Liabilities and owners' equity | 2,509,671,220.14 | 3,084,980,216.58 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang XiaoyinHead of the Finance Department: Lin Xiaojia
3. Consolidated Income Statement
Unit: RMB
| Item | 2023 | 2022 |
| I. Total operating revenue | 589,780,190.71 | 694,227,657.28 |
| Including: operating revenue | 589,780,190.71 | 694,227,657.28 |
| Interest income | ||
| Premiums earned | ||
| Revenue from handling charges and commissions | ||
| II. Total operating costs | 685,824,056.18 | 947,345,416.89 |
| Including: operating costs | 581,442,543.98 | 804,679,323.48 |
| Interest expenses | ||
| Expenses from handling charges and |
| commissions | ||
| Surrender deposit | ||
| Net amount of compensation payout | ||
| Net amount withdrawn for insurance contract reserves | ||
| Policy dividends | ||
| Reinsurance costs | ||
| Taxes and surcharges | 4,799,616.56 | 5,401,350.20 |
| Selling and distribution expenses | 2,831,748.65 | 375,055.78 |
| G&A expenses | 58,330,596.87 | 79,099,350.54 |
| R&D expenses | 26,839,912.74 | 25,647,534.39 |
| Financial expenses | 11,579,637.38 | 32,142,802.50 |
| Including: interest expenses | 18,400,119.58 | 40,218,036.98 |
| Interest income | 7,358,119.93 | 8,790,975.96 |
| Plus: other income | 44,505,889.51 | 9,333,093.72 |
| Investment income (losses expressed with "-") | 34,997,898.47 | 70,717,321.61 |
| Including: investment income from associates and joint ventures | 7,719,627.80 | 3,635,763.05 |
| Gains from derecognition of financial assets measured at amortized costs | ||
| Exchange gains (losses expressed with "-") | ||
| Net exposure hedging gains (losses expressed with "-") | ||
| Gains from fair value changes (losses expressed with "-") | ||
| Losses from credit impairment (losses expressed with "-") | 1,190,348.40 | -1,711,964.42 |
| Asset impairment loss (losses expressed with "-") | -162,985.78 | -8,946,433.92 |
| Gains from disposal of assets (losses expressed with "-") | 1,886,136.92 | 291,985.88 |
| III. Operating profit (losses expressed with "-") | -13,626,577.95 | -183,433,756.74 |
| Plus: non-operating revenue | 11,687,001.25 | 39,600.00 |
| Less: non-operating expenses | 66,116.23 | 2,191,784.23 |
| IV. Total profit (total losses expressed with "-") | -2,005,692.93 | -185,585,940.97 |
| Less: income tax expenses | -63,080.11 | |
| V. Net profit (net losses expressed with "-") | -2,005,692.93 | -185,522,860.86 |
| (I) Classification by operations continuity | -2,005,692.93 | -185,522,860.86 |
| 1. Net profit from continued operations (net losses expressed with "-") | -2,005,692.93 | -185,522,860.86 |
| 2. Net profit from discontinued operations (net losses expressed with "-") | ||
| (II) Classification by ownership | -2,005,692.93 | -185,522,860.86 |
| 1. Net profit attributable to shareholders of the parent company | 4,158,797.10 | -160,163,240.67 |
| 2. Minority interest income | -6,164,490.03 | -25,359,620.19 |
| VI. Net of tax of other comprehensive income | ||
| Net of tax of other comprehensive income attributable to shareholders of the parent company | ||
| (I) Other comprehensive income that cannot be reclassified into profit or loss | ||
| 1. Remeasure changes in benefit plans | ||
| 2. Other comprehensive income that cannot be converted into profit or loss under the equity method | ||
| 3. Fair value changes of other investments in equity instruments | ||
| 4. Fair value changes of the enterprise's own credit risk | ||
| 5. Others | ||
| (II) Other comprehensive income to be reclassified into profit or loss | ||
| 1. Other comprehensive income that can be converted into profit or loss under the equity method | ||
| 2. Fair value changes of other debt investments | ||
| 3. Amounts reclassified from financial assets into other comprehensive income | ||
| 4. Credit loss provisions for other debt investments | ||
| 5. Cash flows hedging reserve | ||
| 6. Difference in translation of foreign-currency financial statements | ||
| 7. Others | ||
| Net of tax of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | -2,005,692.93 | -185,522,860.86 |
| Total comprehensive income attributable to shareholders of the parent company | 4,158,797.10 | -160,163,240.67 |
| Total comprehensive income attributable to minority shareholders | -6,164,490.03 | -25,359,620.19 |
| VIII. Earnings per share | ||
| (I) Basic earnings per share | 0.0069 | -0.2657 |
| (II) Diluted earnings per share | 0.0069 | -0.2657 |
If a business combination under common control occurs in the current period, the net profit reported by thecombined party before the combination is: RMB X, and the net profit reported by the combined party in theprevious period is: RMB X.
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang XiaoyinHead of the Finance Department: Lin Xiaojia
4. Parent company's income statement
Unit: RMB
| Item | 2023 | 2022 |
| I. Operating revenue | 391,649,949.09 | 423,083,901.93 |
| Less: operating costs | 363,689,532.32 | 454,563,835.47 |
| Taxes and surcharges | 2,280,457.39 | 2,377,366.77 |
| Selling and distribution expenses | 963,163.50 | - |
| G&A expenses | 33,986,762.85 | 25,040,490.15 |
| R&D expenses | 13,244,617.52 | 14,071,545.66 |
| Financial expenses | -14,764,469.81 | -7,205,301.51 |
| Including: interest expenses | 14,182,249.86 | 29,858,590.98 |
| Interest income | 29,605,337.48 | 38,552,729.42 |
| Plus: other income | 30,169,947.71 | 5,553,834.58 |
| Investment income (losses expressed with "-") | 32,562,187.79 | 72,910,517.66 |
| Including: investment income from associates and joint ventures | 6,966,316.30 | 6,208,396.44 |
| Income from derecognition of financial assets measured at amortized costs (losses expressed with "-") | ||
| Net exposure hedging gains (losses expressed with "-") | ||
| Gains from fair value changes (losses expressed with "-") | ||
| Losses from credit impairment (losses expressed with "-") | 1,105,348.40 | - |
| Asset impairment loss (losses expressed with "-") | - | -16,871,485.12 |
| Gains from disposal of assets (losses expressed with "-") | 1,749,289.52 | -291,564.09 |
| II. Operating profit (losses expressed with "-") | 57,836,658.74 | -4,462,731.58 |
| Plus: non-operating revenue | 4,287,730.08 | 10,000.00 |
| Less: non-operating expenses | 58,115.11 | 1,539,264.83 |
| III. Total profit (total losses expressed with "-") | 62,066,273.71 | -5,991,996.41 |
| Less: income tax expenses | - | |
| IV. Net profit (net losses expressed with "-") | 62,066,273.71 | -5,991,996.41 |
| (I) Net profit from continued operations (net losses expressed with "-") | 62,066,273.71 | -5,991,996.41 |
| (II) Net profit from discontinued operations (net losses expressed with "-") | ||
| V. Net of tax of other comprehensive income | ||
| (I) Other comprehensive income that cannot be reclassified into profit or loss | ||
| 1. Remeasure changes in benefit plans | ||
| 2. Other comprehensive income that cannot be converted into profit or loss under the equity method | ||
| 3. Fair value changes of other investments in equity instruments | ||
| 4. Fair value changes of the enterprise's own credit risk | ||
| 5. Others | ||
| (II) Other comprehensive income to be reclassified into profit or loss | ||
| 1. Other comprehensive income that can be converted into profit or loss under the equity method | ||
| 2. Fair value changes of other debt investments | ||
| 3. Amounts reclassified from financial assets into other comprehensive income | ||
| 4. Credit loss provisions for other debt investments | ||
| 5. Cash flows hedging reserve | ||
| 6. Difference in translation of foreign-currency financial statements | ||
| 7. Others | ||
| VI. Total comprehensive income | 62,066,273.71 | -5,991,996.41 |
| VII. Earnings per share | ||
| (I) Basic earnings per share |
| 0.1030 | -0.0099 | |
| (II) Diluted earnings per share | 0.1030 | -0.0099 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang XiaoyinHead of the Finance Department: Lin Xiaojia
5. Consolidated statement of cash flows
Unit: RMB
| Item | 2023 | 2022 |
| I. Cash flows generated from operating activities: | ||
| Cash received from selling goods and providing services | 693,869,206.44 | 757,303,689.96 |
| Net increase in customer deposits and inter-bank deposits | ||
| Net increase in borrowing from the central bank | ||
| Net increase in borrowings from banks and other financial institutions | ||
| Cash received from premiums from original insurance contract | ||
| Net cash received from reinsurance business | ||
| Net increase in policyholders' savings and investment funds | ||
| Cash collected from interest, handling charges and commissions | ||
| Net increase in borrowings from banks and other financial institutions | ||
| Net increase in funds from repurchase business | ||
| Net cash received from securities trading agency | ||
| Tax refunds received | 330,262,197.76 | |
| Other cash related to operating activities received | 45,771,867.13 | 54,083,544.34 |
| Sub-total of cash inflows from operating activities | 739,641,073.57 | 1,141,649,432.06 |
| Cash paid for purchasing goods or receiving services | 661,135,671.43 | 746,137,912.91 |
| Increase in loans and advances to customers | ||
| Net increase in central-bank deposits and inter-bank deposits | ||
| Cash paid for indemnity payment of original insurance contract | ||
| Net increase in lending funds | ||
| Cash paid for interest, handling charges and commissions | ||
| Cash paid for policy dividends |
| Cash paid to and for employees | 110,624,945.12 | 130,590,587.11 |
| Various taxes paid | 31,928,707.60 | 31,947,280.10 |
| Other cash related to operating activities paid | 36,323,726.34 | 25,805,249.68 |
| Sub-total of cash outflows from operating activities | 840,013,050.49 | 934,481,029.80 |
| Net cash flows from operating activities | -100,371,976.92 | 207,168,402.26 |
| II. Cash flows generated from investing activities: | ||
| Cash received from recovery of investments | 620,010,220.37 | 120,000,725.39 |
| Cash received from investment income | 24,318,744.60 | 57,197,267.13 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 104,554,420.00 | 1,337,042.66 |
| Net cash received from disposal of subsidiary and other business institutions | ||
| Other cash related to investing activities received | 344,800.00 | |
| Sub-total of cash inflows from investing activities | 749,228,184.97 | 178,535,035.18 |
| Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets | 10,145,320.80 | 3,306,286.80 |
| Cash paid for investment | 100,000,000.00 | |
| Net increase in pledge loans | ||
| Net cash paid for acquisition of subsidiary and other business institutions | ||
| Other cash related to investing activities paid | 446,393,066.79 | 180,009,000.00 |
| Sub-total of cash outflows from investing activities | 456,538,387.59 | 283,315,286.80 |
| Net cash flows from investing activities | 292,689,797.38 | -104,780,251.62 |
| III. Cash flows generated from financing activities: | ||
| Cash received from investment absorption | 199.92 | |
| Including: cash received from absorption of minority investments by subsidiaries | 199.92 | |
| Cash received from acquisition of borrowings | 421,093,926.90 | 1,089,969,116.74 |
| Other cash related to financing activities received | ||
| Sub-total of cash inflows from financing activities | 421,093,926.90 | 1,089,969,316.66 |
| Cash paid to repay debt | 933,281,007.65 | 1,191,887,723.08 |
| Cash paid to distribute dividend, profits or repay interest | 11,184,721.21 | 15,047,840.81 |
| Including: dividends and profits paid to minority shareholders by subsidiaries | ||
| Other cash related to financing activities paid | 6,314,826.00 | 27,474,594.34 |
| Sub-total of cash outflows from financing activities | 950,780,554.86 | 1,234,410,158.23 |
| Net cash flows from financing activities | -529,686,627.96 | -144,440,841.57 |
| IV. The impact of fluctuation in exchange rate on cash and cash equivalents | 82,055.00 | 469,729.40 |
| V. Cash and net increase in cash equivalents | -337,286,752.50 | -41,582,961.53 |
| Plus: beginning cash and balance of cash equivalents | 648,021,672.06 | 689,604,633.59 |
| VI. Closing cash and balance of cash equivalents | 310,734,919.56 | 648,021,672.06 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang XiaoyinHead of the Finance Department: Lin Xiaojia
6. Parent company's statement of cash flows
Unit: RMB
| Item | 2023 | 2022 |
| I. Cash flows generated from operating activities: | ||
| Cash received from selling goods and providing services | 585,940,800.94 | 719,471,315.94 |
| Tax refunds received | - | 321,424,443.28 |
| Other cash related to operating activities received | 101,359,126.91 | 266,804,943.28 |
| Sub-total of cash inflows from operating activities | 687,299,927.85 | 1,307,700,702.50 |
| Cash paid for purchasing goods or receiving services | 466,366,789.52 | 356,279,013.18 |
| Cash paid to and for employees | 66,128,967.09 | 85,583,891.95 |
| Various taxes paid | 16,336,435.27 | 13,597,429.91 |
| Other cash related to operating activities paid | 232,370,081.08 | 17,608,551.99 |
| Sub-total of cash outflows from operating activities | 781,202,272.96 | 473,068,887.03 |
| Net cash flows from operating activities | -93,902,345.11 | 834,631,815.47 |
| II. Cash flows generated from investing activities: | ||
| Cash received from recovery of investments | 620,010,220.37 | 110,000,725.39 |
| Cash received from investment income | 22,636,345.42 | 57,194,268.15 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 4,770.62 | 1,337,042.66 |
| Net cash received from disposal of subsidiary and other business institutions | ||
| Other cash related to investing activities received | 126,000,000.00 | 20,061,163.76 |
| Sub-total of cash inflows from investing activities | 768,651,336.41 | 188,593,199.96 |
| Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets | 9,955,363.27 | 1,639,514.07 |
| Cash paid for investment | - | 100,000,000.00 |
| Net cash paid for acquisition of subsidiary and other business institutions | - | 559,800.08 |
| Other cash related to investing activities paid | 464,000,000.00 | 342,762,500.00 |
| Sub-total of cash outflows from investing activities | 473,955,363.27 | 444,961,814.15 |
| Net cash flows from investing activities | 294,695,973.14 | -256,368,614.19 |
| III. Cash flows generated from financing activities: | ||
| Cash received from investment absorption | ||
| Cash received from acquisition of borrowings | 421,093,926.90 | 507,211,616.74 |
| Other cash related to financing activities received | - | 13,000,000.00 |
| Sub-total of cash inflows from financing activities | 421,093,926.90 | 520,211,616.74 |
| Cash paid to repay debt | 933,281,007.65 | 1,011,887,723.08 |
| Cash paid to distribute dividend, profits or repay interest | 11,182,322.03 | 15,044,841.83 |
| Other cash related to financing activities paid | 19,898,880.17 | 39,068,511.01 |
| Sub-total of cash outflows from financing activities | 964,362,209.85 | 1,066,001,075.92 |
| Net cash flows from financing activities | -543,268,282.95 | -545,789,459.18 |
| IV. The impact of fluctuation in exchange rate on cash and cash equivalents | 1,112.72 | 3,994.89 |
| V. Cash and net increase in cash equivalents | -342,473,542.20 | 32,477,736.99 |
| Plus: beginning cash and balance of cash equivalents | 625,228,950.87 | 592,751,213.88 |
| VI. Closing cash and balance of cash equivalents | 282,755,408.67 | 625,228,950.87 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang XiaoyinHead of the Finance Department: Lin Xiaojia
7. Consolidated statements of changes in owners' equity
The current period amountUnit: RMB
| Item | 2023 | ||||||||||||||
| Owners' equity attributable to the parent company | Minority interests | Owners' equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive income | Special reserves | Surplus reserves | General risk reserves | Undistributed profits | Others | Subtotal | |||||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| I. Closing balance of the previous year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 159,187,979.14 | 1,455,129,894.84 | -62,310,840.26 | 1,392,819,054.58 | |||||||
| Plus: changes in accounting policies | |||||||||||||||
| Correction of prior period errors | |||||||||||||||
| Others | |||||||||||||||
| II. Beginning balance of the current year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 159,187,979.14 | 1,455,129,894.84 | -62,310,840.26 | 1,392,819,054.58 | |||||||
| III. Changes in the current period (decreases expressed with "-") | 4,158,797.10 | 4,158,797.10 | -6,164,490.03 | -2,005,692.93 | |||||||||||
| (I) Total comprehensive | 4,158,797.10 | 4,158,797.10 | -6,164,4 | -2,005,6 | |||||||||||
| income | 90.03 | 92.93 | |||||||||||||
| (II) Owner's investment and reductions in capital | |||||||||||||||
| 1. Ordinary shares invested by owners | |||||||||||||||
| 2. Capital invested by other equity instruments holders | |||||||||||||||
| 3. Share-based payments included in owners' equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (III) Profit distribution | |||||||||||||||
| 1. Withdrawal of surplus reserve | |||||||||||||||
| 2. Withdrawal of general risk reserve | |||||||||||||||
| 3. Distributions to owners (or shareholders) | |||||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal transfer of owners' equity | |||||||||||||||
| 1. Capital reserve converted into capital (or share capital) |
| 2. Surplus reserve converted into capital (or share capital) | |||||||||||||||
| 3. Surplus reserve to cover losses | |||||||||||||||
| 4. Changes in benefit plans transferred to retained earnings | |||||||||||||||
| 5. Other comprehensive income transferred to retained earnings | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserve | |||||||||||||||
| 1. Withdrawal in the current period | 13,270,901.66 | 13,270,901.66 | 13,270,901.66 | ||||||||||||
| 2. Usage in the current period | 13,270,901.66 | 13,270,901.66 | 13,270,901.66 | ||||||||||||
| (VI) Others | |||||||||||||||
| IV. Closing balance in the current period | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 163,346,776.24 | 1,459,288,691.94 | -68,475,330.29 | 1,390,813,361.65 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia
Amount in previous period
Unit: RMB
| Item | 2022 | ||||||||||||||
| Owners' equity attributable to the parent company | Minority interests | Owners' equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive income | Special reserves | Surplus reserves | General risk reserves | Undistributed profits | Others | Subtotal | |||||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| I. Closing balance of the previous 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 | |||||||
| Plus: changes in accounting policies | |||||||||||||||
| Correction of prior period errors | |||||||||||||||
| Others | |||||||||||||||
| II. Beginning balance of the current year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 319,351,219.81 | 1,615,293,135.51 | -36,951,220.07 | 1,578,341,915.44 | |||||||
| III. Changes in the current period (decreases expressed with "-") | -160,163,240.67 | -160,163,240.67 | -25,359,620.19 | -185,522,860.86 | |||||||||||
| (I) Total comprehensive | -160,163, | -160,163,2 | -25,359,6 | -185,522, | |||||||||||
| income | 240.67 | 40.67 | 20.19 | 860.86 | |||||||||||
| (II) Owner's investment and reductions in capital | |||||||||||||||
| 1. Ordinary shares invested by owners | |||||||||||||||
| 2. Capital invested by other equity instruments holders | |||||||||||||||
| 3. Share-based payments included in owners' equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (III) Profit distribution | |||||||||||||||
| 1. Withdrawal of surplus reserve | |||||||||||||||
| 2. Withdrawal of general risk reserve | |||||||||||||||
| 3. Distributions to owners (or shareholders) | |||||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal transfer of owners' equity | |||||||||||||||
| 1. Capital reserve converted into capital (or share capital) |
| 2. Surplus reserve converted into capital (or share capital) | |||||||||||||||
| 3. Surplus reserve to cover losses | |||||||||||||||
| 4. Changes in benefit plans transferred to retained earnings | |||||||||||||||
| 5. Other comprehensive income transferred to retained earnings | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserve | |||||||||||||||
| 1. Withdrawal in the current period | 879,946.49 | 879,946.49 | 879,946.49 | ||||||||||||
| 2. Usage in the current period | 879,946.49 | 879,946.49 | 879,946.49 | ||||||||||||
| (VI) Others | |||||||||||||||
| IV. Closing balance in the current period | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 159,187,979.14 | 1,455,129,894.84 | -62,310,840.26 | 1,392,819,054.58 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia
8. Statement of changes in owner's equity of the parent company
The current period amount
Unit: RMB
| Item | 2023 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive income | Special reserves | Surplus reserves | Undistributed profits | Others | Owners' equity | |||
| Preferred shares | Perpetual bonds | Others | ||||||||||
| I. Closing balance of the previous year | 602,762,596.00 | - | - | - | 289,963,039.70 | - | - | - | 332,908,397.60 | 556,747,679.96 | 1,782,381,713.26 | |
| Plus: changes in accounting policies | ||||||||||||
| Correction of prior period errors | ||||||||||||
| Others | ||||||||||||
| II. Beginning balance of the current year | 602,762,596.00 | - | - | - | 289,963,039.70 | - | - | - | 332,908,397.60 | 556,747,679.96 | 1,782,381,713.26 | |
| III. Changes in the current period (decreases expressed with "-") | 62,066,273.71 | 62,066,273.71 | ||||||||||
| (I) Total comprehensive income | 62,066,273.71 | 622,066,273.71 | ||||||||||
| (II) Owner's investment | ||||||||||||
| and reductions in capital | ||||||||||||
| 1. Ordinary shares invested by owners | ||||||||||||
| 2. Capital invested by other equity instruments holders | ||||||||||||
| 3. Share-based payments included in owners' equity | ||||||||||||
| 4. Others | ||||||||||||
| (III) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserve | ||||||||||||
| 2. Distributions to owners (or shareholders) | ||||||||||||
| 3. Others | ||||||||||||
| (IV) Internal transfer of owners' equity | ||||||||||||
| 1. Capital reserve converted into capital (or share capital) | ||||||||||||
| 2. Surplus reserve converted into capital (or share capital) | ||||||||||||
| 3. Surplus reserve to cover losses | ||||||||||||
| 4. Changes in benefit plans transferred to retained earnings | ||||||||||||
| 5. Other comprehensive income transferred to |
| retained earnings | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserve | ||||||||||||
| 1. Withdrawal in the current period | 7,778,687.26 | 7,778,687.26 | ||||||||||
| 2. Usage in the current period | 7,778,687.26 | 7,778,687.26 | ||||||||||
| (VI) Others | ||||||||||||
| IV. Closing balance in the current period | 602,762,596.00 | - | - | - | 289,963,039.70 | - | - | - | 332,908,397.60 | 618,813,953.67 | 1,844,447,986.97 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia
Amount in previous period
Unit: RMB
| Item | 2022 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive income | Special reserves | Surplus reserves | Undistributed profits | Others | Owners' equity | |||
| Preferred shares | Perpetual bonds | Others | ||||||||||
| I. Closing balance of the previous year | 602,762,596.00 | - | - | - | 289,963,039.70 | - | - | - | 332,908,397.60 | 562,739,676.37 | 1,788,373,709.67 | |
| Plus: changes in accounting policies | ||||||||||||
| Correction of prior period errors | ||||||||||||
| Others | ||||||||||||
| II. Beginning balance of the current year | 602,762,596.00 | - | - | - | 289,963,039.70 | - | - | - | 332,908,397.60 | 562,739,676.37 | 1,788,373,709.67 | |
| III. Changes in the current period (decreases expressed with "-") | -5,991,996.41 | -5,991,996.41 | ||||||||||
| (I) Total comprehensive income | -5,991,9 | -5,991,996. | ||||||||||
| 96.41 | 41 | |||||||||||
| (II) Owner's investment and reductions in capital | ||||||||||||
| 1. Ordinary shares invested by owners | ||||||||||||
| 2. Capital invested by other equity instruments holders | ||||||||||||
| 3. Share-based payments included in owners' equity | ||||||||||||
| 4. Others | ||||||||||||
| (III) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserve | ||||||||||||
| 2. Distributions to owners (or shareholders) | ||||||||||||
| 3. Others | ||||||||||||
| (IV) Internal transfer of owners' equity | ||||||||||||
| 1. Capital reserve converted into capital (or share capital) | ||||||||||||
| 2. Surplus reserve converted into capital (or share capital) | ||||||||||||
| 3. Surplus reserve to cover losses | ||||||||||||
| 4. Changes in benefit plans transferred to retained |
| earnings | ||||||||||||
| 5. Other comprehensive income transferred to retained earnings | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserve | ||||||||||||
| 1. Withdrawal in the current period | 434,489.58 | 434,489.58 | ||||||||||
| 2. Usage in the current period | 434,489.58 | 434,489.58 | ||||||||||
| (VI) Others | ||||||||||||
| IV. Closing balance in the current period | 602,762,596.00 | - | - | - | 289,963,039.70 | - | - | - | 332,908,397.60 | 556,747,679.96 | 1,782,381,713.26 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 1
Shenzhen Nanshan Power Co., Ltd.2023 Notes to the Financial statements(Unless otherwise specified, the monetary unit is RMB)I. Basic information of the Company(I) Company profileShenzhen Nanshan Power Co., Ltd. (the Company) was reorganized and established from aforeign investment enterprise to a joint stock limited company on November 25, 1993, with theapproval of the General Office of the Shenzhen Municipal People's Government under documentSFBF [1993] No. 897.As approved by the General Office of the Shenzhen Municipal People's Government underdocument SZBF [1993] No. 179, the Company issued 40 million RMB ordinary shares and 37million domestically listed foreign shares to domestic and overseas investors respectively onJanuary 3, 1994. On July 1, 1994 and November 28, 1994, the RMB ordinary shares (A shares)and domestically listed foreign shares (B shares) issued by the Company were listed and traded onShenzhen Stock Exchange.The Company's main business is the production and operation of power supply and heating, aswell as technical consultation and technical services related to power plant (station). TheCompany's registered address is located at No. 2097 Moon Bay Avenue, Nanshan District,Shenzhen, Guangdong. The Company's headquarters office is located at 16F/17F, HantangBuilding, Overseas Chinese Town, Nanshan District, Shenzhen, Guangdong.The financial statements have been approved by the Company's Board of Directors on April 10,2024.
(II) Scope of financial statementsThere are a total of 8 subsidiaries (enterprises) included in the scope of the consolidated financialstatements in the current period, including:
| Subsidiary (enterprise) name | Shareholding ratio % | Remark |
| Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. (Shenzhen Nanshan Power Zhongshan Company) | 80.00 | |
| Shenzhen Nanshan Power Gas Turbine Engineering Technology (Shenzhen) Co., Ltd. (Shenzhen Nanshan Power Engineering Company) | 100.00 | |
| Shenzhen Nanshan Power Environmental Protection (Shenzhen) Co., Ltd. (Shenzhen Nanshan Power Environmental Protection Company) | 100.00 | |
| Shenzhen Xiefu Energy Co., Ltd. (Xiefu Company) | 50.00 | |
| Shenzhen New Power Industrial Co., Ltd. (New Power Company) | 100.00 | |
| Shennan Energy (Singapore) Co., Ltd. (Shennan Energy (Singapore) Company) | 100.00 | |
| Hong Kong Syndisome Co., Ltd. (Hong Kong Syndisome) | 100.00 | |
| Zhuhai Hengqin Zhuozhi Investment Partnership ( Limited Partnership) (Zhuhai Hengqin) | 99.96 |
For details on the scope of consolidated financial statements in the current period and its changes,please refer to Note "VII. Interests in Other Entities".
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 2
II. Basis for the preparation of financial statementsThe financial statements are prepared in accordance with Accounting Standards for BusinessEnterprises - Basic Standards promulgated by the Ministry of Finance and the specific accountingstandards, application guidelines, interpretations and other relevant regulations promulgated andrevised thereafter (collectively referred to as the "Accounting Standards for Business Enterprises").In addition, the financial statements also disclose relevant financial information in accordancewith the Information Disclosure and Preparation Rules for Companies that Issue Public Offeringof Securities No. 15 - General Provisions on Financial Reports (Revised in 2023.The financial statements are prepared on a going concern basis. The Company has not found anyfactors that would cause significant doubts about its going-concern ability within 12 months fromthe end of the reporting period.
III. Important accounting policies and accounting estimatesBased on its actual production and operation characteristics and the provisions of relevantAccounting Standards for Business Enterprises, the Company has formulated several specificaccounting policies and accounting estimates, which are mainly reflected in the Provision for BadDebts of Accounts Receivable (Note III (XI) 6), Inventories (Note III (XII)), Fixed Assets (NoteIII (XVI)), Long-term Deferred Expenses (Note III (XXI)), Revenue Recognition andMeasurement (Note III (XXV)), Special Reserves (Note III (XXX)) etc.
(I) Statement on compliance with Accounting Standards for Business EnterprisesThe financial statements comply with the requirements of Accounting Standards for BusinessEnterprises promulgated by the Ministry of Finance, and truly and completely reflect theCompany's combination and the parent company's financial status as of December 31, 2023, aswell as the Company's combination and the parent company's operating results and cash flows in2023.
(II) Accounting periodA fiscal year begins on January 1 and ends on December 31 of the Gregorian calendar.
(III) Operating cycleThe Company uses 12 months of the year as its normal operating cycle and uses the operatingcycle as a criterion for classifying the liquidity of its assets and liabilities.
(IV) Recording currencyThe Company uses RMB as the recording currency.
(V) Materiality criteria determination method and selection basis
| Item | Materiality criterion |
| Significant individual provision for bad debts of accounts receivable | Original book value is greater than RMB 1 million |
| Significant provision for bad debts of accounts receivable recovered or | The amount of individual provision for bad debts of accounts receivable recovered or reversed |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 3
| Item | Materiality criterion |
| reversed in the current period | exceeds RMB 1 million |
| Write-off of significant accounts receivable | The write-off amount of individual accounts receivable exceeds RMB 1 million |
| Important construction in progress | The individual amount is greater than RMB 5 million |
| Significant estimated liabilities | The individual amount is greater than RMB 5 million |
(VI) Accounting treatments for business combinations under common control and not undercommon controlFor a business combination under common control, the assets and liabilities acquired by thecombining party in a business combination are measured at the book value of the assets andliabilities of the combined party at the combination date (including goodwill resulting from theacquisition of the combined party by the ultimate controller) in the consolidated financialstatements of the ultimate controller. The difference between the book value of net assets acquiredin the combination and the book value of the combination consideration paid (or the total nominalvalue of shares issued) is adjusted to the equity premium in capital reserve, or to retained earningsif the equity premium in capital reserve is not sufficient for elimination.For a business combination not under common control, the assets given, liabilities incurred orassumed by the purchaser as consideration for the business combination are measured at fair valueat the purchase date, and the difference between the fair value and its book value is recognized incurrent profit or loss. Goodwill is recognized if the combination cost is greater than the differencein the share of fair value of identifiable net assets of the acquiree acquired in the combination;current profit or loss is recognized if the combination cost is lower than the difference in the shareof fair value of identifiable net assets of the acquiree acquired in the combination.Costs directly related to business combinations are recognized in current profit or loss as incurred;transaction costs for the issuance of equity securities or debt securities for business combinationsare presented in the amount initially recognized for equity securities or debt securities.
(VII) Method of preparation for consolidated financial statements
1. Consolidation scope
The consolidation scope of the consolidated financial statements is determined based on control,and covers the Company and all subsidiaries.
2. Consolidation procedure
The Company prepares consolidated financial statements based on its own financial statementsand those of its subsidiaries' and other relevant information. When the Company preparesconsolidated financial statements, it treats the entire enterprise group as an accounting entity, andreflects the overall financial status, operating results and cash flows of the enterprise group inaccordance with the recognition, measurement and presentation requirements of relevantAccounting Standards for Business Enterprises and in accordance with unified accounting policies.Accounting policies and accounting periods adopted by all subsidiaries included in theconsolidation scope of consolidated financial statements are consistent with those of the Company.If accounting policies and accounting periods adopted by subsidiaries are inconsistent with thoseof the Company, necessary adjustments are made when preparing consolidated financialstatements in accordance with the Company's accounting policies and accounting periods. For asubsidiary acquired through business combination not under common control, its financialstatements are adjusted based on fair value of identifiable net assets on the purchase date. For asubsidiary acquired through business combination under common control, adjustments are made
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 4
to its financial statements based on the book value of its assets and liabilities (including goodwillresulting from acquisition of the subsidiary by ultimate controller) in the ultimate controller'sfinancial statements.The subsidiary's owners' equity, current net profit or loss and current comprehensive incomebelonging to minority shareholders are presented under the item of owners' equity in theconsolidated balance sheet, under the item of net profit and under the item of total comprehensiveincome in the consolidated income statement, respectively. The balance resulting from the excessof the minority shareholders' share of the current loss of a subsidiary over the minority's share ofthe subsidiary's owners' equity at the beginning of the period is used to offset the minority interests.
(1) Increases in subsidiaries or businesses
If there are increases in subsidiaries or businesses as a result of business combination undercommon control during the reporting period, the beginning balance of the consolidated balancesheet is adjusted; include revenue, expenses and profits of subsidiaries or business combinationsfrom the beginning of the current period to the end of the reporting period in the consolidatedincome statement; include cash flows from the beginning of the period to the end of the reportingperiod of subsidiaries or business combinations in the consolidated statement of cash flows, andadjust the relevant line items in the comparative statements to deem the consolidated reportingentity to have been in existence since the time point at which the ultimate controller began tocontrol.If control can be exercised over an investee under common control as a result of an additionalinvestment, etc., the parties involved in the combination are deemed to have been adjusted basedon their current status when the ultimate controller began to control. For equity investments heldprior to the acquisition of right of control of the combined party, the relevant profit or loss, othercomprehensive income and other changes in net assets have been recognized between the later ofthe combination date of the original equity and the date on which the merging party and themerged party were under common control and the combination date, whichever is later, and areoffset against the beginning retained earnings or current profit or loss of comparative statementsperiod.If there are increases in subsidiaries or businesses as a result of a business combination not undercommon control during the reporting period, the beginning balance of the consolidated balancesheet will not be adjusted; include revenue, expenses and profits of subsidiary or business from thepurchase date to the end of the reporting period in consolidated income statement; include the cashflows of the subsidiary or business from the purchase date to the end of the reporting period in theconsolidated statement of cash flows.If the Company can control an investee that is not under common control as a result of additionalinvestment, etc., the Company remeasures the acquiree's equity interest held prior to the purchasedate at the fair value of the equity interest at the purchase date of the equity interest. Thedifference between the fair value and its book value is recognized in current investment income. Ifthe equity interest in the acquiree held prior to the purchase date is related to other comprehensiveincome accounted for under the equity method and other changes in owners' equity other than netprofit or loss, other comprehensive income and profit distribution, the other comprehensiveincome and other changes in owners' equity related to them are transferred to investment incomefor the period in which they are held at the purchase date, except for other comprehensive incomedue to the remeasurement of the investee's net liabilities under defined benefit plans or changes innet assets.
(2) Disposal of subsidiaries or businesses
① General treatment method
If the Company disposes the subsidiary or business during the reporting period, the revenue,expenses and profits of the subsidiary or business from the beginning of the period to the date ofdisposal are included in the consolidated income statement; cash flows of the subsidiary orbusiness from the beginning of the period to the date of disposal are included in the consolidatedstatement of cash flows.
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When the Company loses right of control over the investee due to the disposal of part of the equityinvestments or other reasons, the Company remeasures the remaining equity investments after thedisposal according to its fair value on the date of loss of control. The difference between the sumof the consideration received for the disposal of equity interest and the fair value of the remainingequity interest less the sum of the share of the original subsidiary's net assets continuouslymeasured from the purchase date or the combination date based on the original shareholding ratioand goodwill is recognized as investment income in the period in which the loss of control occurs.Other comprehensive income related to equity investments in subsidiaries or other changes inowners' equity other than net profit or loss, other comprehensive income and profit distribution aretransferred to investment income in the current period upon loss of control, except for othercomprehensive income due to remeasurement of net liabilities under defined benefit plans orchanges in net assets by the investee.If the Company's shareholding ratio decreases due to other investors' capital increase in thesubsidiary and the Company loss of control, accounting treatment is carried out in accordance withthe above principles.
① Disposal of subsidiaries in stages
For a disposal of equity investments in subsidiaries through multiple transactions in stages untilthe loss of control, it generally indicates that multiple transactions are accounted for as a packagedeal if the terms, conditions, and economic effects of each transaction of such disposal of equityinvestments in subsidiaries meet one or more of the following circumstances:
i. Such transactions are entered into simultaneously or with consideration of their effects on eachother;ii. Such transactions can only achieve a complete business result when taken as an entirety;iii. The occurrence of one transaction depends on the occurrence of at least one other transaction;iv. A transaction is uneconomical when considered in isolation, but economical when consideredin conjunction with other transactions.If the transactions that dispose of the equity investments in subsidiaries until of loss of controlbelongs to a package deal, the Company account for each transaction as a transaction in whichsubsidiary is disposed of and loss of control; however, the difference between the disposal priceand the net asset share of the subsidiary corresponding to the disposal of the investment in eachcase prior to the loss of control is recognized in the consolidated financial statements as othercomprehensive income and transferred to current profit or loss in the period in which the loss ofcontrol occurs.If various transactions involving the disposal of equity investments in subsidiaries until loss ofcontrol do not belong to a package deal, prior to the loss of control, accounting treatment isperformed in accordance with the relevant policies for partial disposal of equity investments insubsidiary without loss of control; upon loss of control, accounting treatment is performed inaccordance with general method for disposal subsidiary.
(3) Purchase of minority interests in subsidiaries
The difference between the newly acquired long-term equity investments resulting from thepurchase of minority interests and the Company's net asset share of the subsidiaries calculated onthe basis of the ratio of the newly acquired shares in the subsidiaries' net assets on an ongoingbasis from the purchase date (or the combination date) is adjusted to the equity premium in thecapital reserve in the consolidated balance sheet, or to the retained earnings if the equity premiumin the capital reserve is insufficient to offset the difference.
(4) Partially dispose of equity investments in subsidiaries without loss of controlThe difference between the disposal price obtained from the partial disposal of long-term equityinvestments in subsidiaries without loss of control and the corresponding subsidiaries' net assetshare on a continuing basis from the purchase date (or the combination date) of the long-termequity investments disposed of is adjusted to the equity premium in the capital reserve in theconsolidated balance sheet, or to the retained earnings if the capital reserve is insufficient to offset
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the difference.
(VIII) Joint venture arrangements classification and accounting treatmentsJoint venture arrangements are divided into joint operations and joint ventures.When the Company is a joint party to joint venture arrangements, is entitled to the assets andassumes the liabilities related to the arrangements, it is a joint operation.The Company confirms the following items related to the interest share in joint operations, andperforms accounting treatments in accordance with the relevant Accounting Standards forBusiness Enterprises:
(1) Recognizing assets held separately by the Company and recognizing jointly held assets basedon the Company's share;
(2) Recognizing liabilities borne separately by the Company and recognizing liabilities bornejointly based on the Company's share;
(3) Recognizing revenue from the sale of the Company's share of joint operations outputs;
(4) Recognizing revenue from joint operations arising from the sale of output based on theCompany's share;
(5) Recognizing expenses incurred independently, and recognizing expenses incurred by jointoperations based on the Company's share.The Company's accounting policies for investments in joint ventures are set out in Note "III. (XIV)Long-term Equity Investments".
(IX) Determination criteria for cash and cash equivalentsWhen preparing the statement of cash flows, the Company's cash on hand and deposits that can beused for payment at any time are recognized as cash. Investments that meet the four conditions ofshort term (due within three months from the purchase date), strong liquidity, easy conversion intoknown amounts of cash, and small risk of value changes are determined as cash equivalents.
(X) Foreign currency transactions and translation of foreign currency statements
1. Foreign currency transactions
Foreign currency transactions are recorded using the spot exchange rate at the transaction date asthe translation rate to convert the foreign currency amount into RMB.The balance of foreign currency monetary items on the balance sheet date is translated at spotexchange rate on balance sheet date. The resulting exchange differences are recognized in currentprofit or loss, except for those arising from foreign-currency special borrowings related to theacquisition and construction of assets eligible for capitalization, which are treated in accordancewith the principle of capitalization of borrowing costs.
2. Translation of foreign currency financial statements
Assets and liability items in the balance sheet are translated using spot exchange rate on thebalance sheet date; Owners' equity items, except for "undistributed profits", are translated at spotexchange rate at the time of occurrence. Revenue and expense items in the income statement aretranslated at spot exchange rate on the transaction date.When disposing of an overseas operation, the translation difference of the translation of foreign-currency financial statements related to the overseas operation is transferred from owners' equityitems to the current profit or loss in the period of disposal.
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(XI) Financial instrumentsFinancial instruments include financial assets, financial liabilities and equity instruments.
1. Classification of financial instruments
Based on the Company's business model for managing financial assets and the contract cash flowscharacteristics of financial assets, financial assets are classified upon initial recognition into:
financial assets measured at amortized costs, financial assets measured at fair value with changesincluded in other comprehensive income financial assets (debt instruments) and financial assetsmeasured at fair value with changes included in current profit or loss.Financial assets with a business model whose objective is to collect the contract cash flows andwhose contract cash flows consist solely of payments of principal and interest based on theprincipal amount outstanding are classified as financial assets measured at amortized costs;Financial assets with a business model whose objective is both to collect the contract cash flowsand to sell the financial assets and whose contract cash flows consist solely of payments ofprincipal and interest based on the principal amount outstanding are classified as financial assets atfair value with changes included in other comprehensive income (debt instruments); otherfinancial assets beyond these are classified as financial assets measured at fair value with changesincluded in current profit or loss.For investments in non-trading equity instruments, the Company determines upon initialrecognition whether to designate them as financial assets (equity instruments) measured at fairvalue with changes included in other comprehensive income.Financial liabilities are classified upon initial recognition into: financial liabilities measured at fairvalue with changes included in current profit or loss and financial liabilities measured at amortizedcosts.Financial liabilities that meet one of the following conditions can be designated upon initialmeasurement as financial liabilities measured at fair value with changes included in current profitor loss:
(1) The designation can eliminate or significantly reduce the accounting mismatch.
(2) Manage and evaluate the performance of the financial liabilities portfolio or the financialassets and financial liabilities portfolio on a fair value basis in accordance with the enterprise's riskmanagement or investment strategy as set out in formal written document, and report on this basiswithin the enterprise to key officers.
(3) The financial liabilities contain embedded derivatives that are subject to separate spin-off.
2. Recognition basis and measurement method for financial instruments
(1) Financial assets measured at amortized costs
Financial assets measured at amortized costs including notes receivable, accounts receivable, otherreceivables, long-term receivables, debt investments, etc., are initially measured at fair value, withrelated transaction costs included in the initial recognition amount; accounts receivable that do notcontain significant financing components and accounts receivable that the Company decides not toconsider the financing components of less than one year are initial measurement at the contracttransaction prices.Interest calculated using the effective interest method during the holding period is included incurrent profit or loss.When financial assets are recovered or disposed of, the difference between the price obtained andthe book value of the financial assets is recorded in current profit or loss.
(2) Financial assets (debt instruments) measured at fair value with changes included in othercomprehensive incomeFinancial assets (debt instruments) measured at fair value with changes included in othercomprehensive income including receivables financing, other debt investments, etc., are initiallymeasured at fair value, with related transaction costs included in the initial recognition amount.
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The subsequent measurement of the financial assets is carried out at fair value, with fair valuechanges recognized in other comprehensive income, except for interest calculated using theeffective interest method, impairment losses or gains, and foreign exchange profit or loss.On derecognition, accumulated gains or losses previously included in other comprehensiveincome are transferred out of other comprehensive income and included in current profit or loss.
(3) Financial assets (equity instruments) measured at fair value with changes included in othercomprehensive incomeFinancial assets (equity instruments) measured at fair value with changes included in othercomprehensive income including other investments in equity instruments, etc., are initiallymeasured at fair value, with related transaction costs included in the initial recognition amount.The subsequent measurement of the financial assets is carried out at fair value, with fair valuechanges included in other comprehensive income. Dividend received are included in current profitor loss.On derecognition, accumulated gains or losses previously included in other comprehensiveincome are transferred out of other comprehensive income and included in retained earnings.
(4) Financial assets measured at fair value with changes included in current profit or lossFinancial assets measured at fair value with changes included in current profit or loss includingfinancial assets held for trading, derivative financial assets, other non-current financial assets, etc.,are initially measured at fair value, with related transaction costs included in current profit or loss.The subsequent measurement of the financial assets is carried out at fair value, with fair valuechanges included in current profit or loss.
(5) Financial liabilities measured at fair value with changes included in current profit or lossFinancial liabilities measured fair value with changes included in current profit or loss includingfinancial liabilities held for trading, derivative financial liabilities, etc., are initially measured atfair value, with related transaction costs included in current profit or loss. The subsequentmeasurement of the financial liabilities is carried out at fair value, with fair value changesincluded in current profit or loss.On derecognition, the difference between the book value and the consideration paid is included incurrent profit or loss.
(6) Financial liabilities measured at amortized costs
Financial liabilities measured at amortized costs including short-term borrowings, notes payable,accounts payable, other payables, long-term borrowings, bonds payable, and long-term payables,are initially measured at fair value, with related transaction costs included in the initial recognitionamount.Interest calculated using the effective interest method during the holding period is included incurrent profit or loss.On derecognition, the difference between the consideration paid and the book value of thefinancial liabilities is included in current profit or loss.
3. Recognition basis and measurement method for transfer of financial assetsThe Company assesses the extent to which it retains the risks and rewards of ownership offinancial assets when a transfer of financial assets occurs and treats them as follows, respectively:
(1) If substantially all the risks and rewards of ownership of financial assets are transferred, thefinancial assets are derecognized, and rights and obligations arising from or retained in the transferare recognized separately as assets or liabilities.
(2) If substantially all the risks and rewards of ownership of financial assets are retained, thefinancial assets continue to be recognized.
(3) If the Company neither transfers nor retains substantially all risks and rewards of ownershipfinancial assets (i.e., in cases other than those in (1) and (2) of this Article), it treats the financial
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assets, according to whether or not it retains control over the financial asset, respectively asfollows:
1) If control over the financial assets is not retained, the financial assets are derecognized and therights and obligations arising from or retained in the transfer are recognized separately as assets orliabilities.
2) If control of financial assets is retained, the financial assets continue to be recognized to theextent of continued involvement in the transferred financial assets, and related liabilities arerecognized accordingly. The extent of continued involvement in the transferred financial assets isthe extent to which the Company bears the risk or rewards of changes in the value of thetransferred financial assets.In determining whether the transfer of financial assets satisfies the above conditions forderecognition of financial assets, the principle of substance over form is applied. The Companydistinguishes between transfer of financial assets in their entirety and partial transfer of financialassets.
(1) When the financial assets are transferred in their entirety to satisfy the conditions forderecognition, the difference between the following two amounts is recognized in current profit orloss:
1) The book value of transferred financial assets on the derecognition date.
2) The sum of the consideration received for the transfer of the financial assets and the amountcorresponding to the derecognized part of the cumulative fair value changes included directly inother comprehensive income (the financial assets involved in the transfer are financial assets atfair value with changes included in other comprehensive income).
(2) If financial assets are partially transferred and the transferred part as a whole meets conditionsfor derecognition, the book value of the entire financial assets before the transfer is dividedbetween the derecognized part and the continued recognition part (in this case, the retained serviceassets are deemed to continue to be recognized as part of financial assets) are amortized accordingto their respective relative fair values on the transfer date , and the difference between thefollowing two amounts is included in current profit or loss:
1) The book value of derecognized part on the derecognition date.
2) The sum of the consideration received for the derecognized part and the amount correspondingto the derecognized part of the cumulative amount of fair value changes originally included inother comprehensive income (the financial assets involved in the transfer are financial assets atfair value with changes included in other comprehensive income).If the transfer of financial assets does not satisfy the conditions for derecognition, the financialassets continue to be recognized and the consideration received is recognized as financialliabilities.
4. Conditions for derecognition of financial liabilities
If the current obligations for financial liabilities are fully or partially discharged, the financialliabilities, or a part thereof, are derecognized; if the Company enters into an agreement with acreditor to replace the existing financial liabilities by assuming new financial liabilities, and thecontractual terms of the new financial liabilities are substantially different from those of theexisting financial liabilities, the existing financial liabilities are derecognized and the newfinancial liabilities are recognized simultaneously.If all or part of the contractual terms of the existing financial liabilities are substantially modified,the existing financial liabilities or a part thereof are derecognized, and the modified financialliabilities are recognized as new financial liabilities.When financial liabilities are fully or partially derecognized, the difference between the bookvalue of the derecognized financial liabilities and the consideration paid (including non-cashassets transferred out or new financial liabilities assumed) is recognized in current profit or loss.If the Company repurchases part of financial liabilities, it allocates the overall book value of the
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financial liabilities based on the relative fair values of the continued recognition part andderecognized part on the repurchase date. The difference between the book value allocated to thederecognized part and the consideration paid (including non-cash assets transferred out or newfinancial liabilities assumed) is recognized in current profit or loss.
5. Methods for determining fair values of financial assets and financial liabilitiesFor financial instruments that have an active market, their fair values are determined based on thequoted price in the active market. For financial instruments that do not have active market, theirfair values are determined by valuation techniques. In valuing the fair value, the Company usesvaluation techniques that are applicable in the current circumstances and are supported bysufficient available data and other information, selects inputs that are consistent with thecharacteristics of the assets or liabilities that would be considered by a market participant in atransaction for the underlying assets or liabilities, and prioritizes the use of relevant observableinputs. Non-observable inputs are used only when relevant observable inputs are not available ornot practicable to obtain.
6. Impairment of financial assets
The Company estimates expected credit losses on financial assets measured at amortized costs andfinancial assets measured at fair value with changes included in other comprehensive income (debtinstruments), either individually or in combination, taking into account all reasonable andsupportable information including forward-looking information. The measurement of expectedcredit losses depends on whether a significant increase in credit risk has occurred in the financialassets since initial recognition.The Company uses a simplified measurement method to measure loss provisions based onexpected credit losses over the entire life of all notes receivable, contract assets, accountsreceivable and lease receivables generated from daily operating activities such as sales of goodsand provision of services that are regulated by the revenue standard; for notes receivable,receivables financing and other receivables classified as portfolio other than these, the Companycalculates expected credit losses by reference to historical credit loss experience, currentconditions, and projections of future economic conditions by using default risk exposures, andexpected credit loss over the life of the instruments rate within the next 12 months or over theentire duration.In addition to the above-mentioned simplified measurement methods and various other receivablesand temporary payments other than purchased or originated credit loss, the Company evaluates onbalance sheet date whether credit risk of relevant financial instruments has increased significantlysince the initial recognition, measures its provision for losses and recognizes expected creditlosses and changes therein, respectively.
(1) Recognition criteria and methods for provision for provision for bad debts of accountsreceivable with significant individual provision and single provision for bad debtsThe Company conducts separate impairment test on accounts receivable with significantindividual amounts, and conducts separate impairment test on financial assets that have not beenimpaired and includes them in financial assets portfolio with similar credit risk characteristics.Accounts receivable for which impairment losses are recognized in individual test are no longerincluded in the portfolio of accounts receivable with similar credit risk characteristics forimpairment testing.
(2) Accounts receivable with individually insignificant amount but individual provision for baddebtsFor accounts receivable whose individual amounts are not significant but have the followingcharacteristics, such as: accounts receivable that are in dispute with the other party or involved inlitigation or arbitration; The debtor fails to be contacted and there is no third-party pursuer; Theaccounts receivable that have obvious signs that the debtor is likely to be unable to fulfill itsrepayment obligations shall be subject to a separate impairment test. If any object evidenceproving the existence of impairment, impairment loss is recognized and provision for impairmentis made at the difference between present value of future cash flows and their book value.
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(3) Determination basis and calculation method of accounts receivable whose expected creditlosses are calculated based on credit risk portfolioWhen sufficient evidence of expected credit losses cannot be assessed at a reasonable cost at theindividual instrument level, the Company divides notes receivable, accounts receivable, otherreceivables, and contract assets into portfolios based on credit risk characteristics by referring tohistorical credit loss experience, taking into account current conditions as well as judgments offuture economic conditions, and calculates expected credit losses on a portfolio basis.
| Name of portfolio | Basis for determining the portfolio |
| Portfolio I | Portfolio of bank acceptance bills |
| Portfolio II | Receivables from power production and sales |
| Portfolio III | Integrated energy service receivables |
| Portfolio IV | Consolidated accounts receivable from related parties, other receivables and contract asset portfolios |
| Portfolio V | Margin, security deposit and petty cash portfolio |
| Portfolio VI | Export tax rebate, VAT refunded upon collection and other tax portfolios |
| Portfolio VII | Other receivables and temporary payments other than the above portfolios |
(XII) Inventories
1. Classification of inventories
The Company's main business is the power production and sale of power. The Company'sinventories mainly consist of materials and supplies consumed in the course of production orrendering of services, mainly including fuel, raw materials, spare parts and maintenanceequipment, etc.
2. Valuation method for dispatched inventories
Inventories are initially measured at the cost when acquired, but measured at weighted averagemethod when dispatched.
3. Basis for determining net realizable value of different categories of inventoriesFor goods inventories for direct sale, including finished products, stock commodities and materialsfor sale, their net realizable values shall be recognized at the estimated selling prices minus theestimated selling and distribution expenses and the relevant taxes and surcharges in the course ofnormal production and operation; For material inventories required for process, in the course ofnormal production and operation, their net realizable values are recognized at the estimated sellingprices of finished products minus estimated costs until completion, selling and distributionexpenses and relevant taxes and surcharges; For inventories held to execute sales contract orservice contract, their net realizable values are calculated on the basis of contract price. If thequantities of inventories specified in sales contracts are less than the quantities held by theCompany, the net realizable value of the excess portion of inventories shall be based on generalselling prices.Provision for inventory depreciation will be made at the end of the period on an individual basis.However, for inventories with large quantities and low unit prices, provision for inventorydepreciation are made according to the category of inventories; For the inventories related to theseries of products manufactured and sold in the same area, and of which the final use or purpose isidentical or similar thereto, and if it is difficult to measure them by separating them from otheritems, the provision for inventory depreciation reserve shall be made on a consolidation basis.When making provision for inventory depreciation, if the factors causing any write-down of
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inventory value have disappeared, leading to the net realizable values of inventories higher than itsbook value, the amount of write-down shall be reversed from the original provision for inventorydepreciation with the reversal being included in the current profit or loss.
4. Inventory system
The perpetual inventory system is adopted.
5. Amortization method for low-value consumables and packaging materials
(1) Low-value consumables are amortized at lump-sum method.
(2) Packaging materials are amortized at lump-sum method.
(XIII) Contract assetsIf the Company has transferred the goods to the customer and has the right to receiveconsideration, and the right depends on factors other than the passage of time, it is recognized ascontract assets. The Company's unconditional (i.e., subject only to the passage of time) right toreceive consideration from customers is presented separately as accounts receivable.See Note III.(XI) 6. Impairment of financial assets, for the Company's determination method andaccounting treatment for the expected credit losses of contract assets.
(XIV) Long-term equity investments
1. Judgment criteria for common control and significant influence
Common control refers to the mutual control over certain arrangement based on relevantagreements, however, activities related to such arrangement can be decided only when theconsensus of the participating party sharing the right of control is obtained. Where the Companyexercises common control over the investees together with other parties to the joint ventures andenjoys the right on the investee's net assets, the investee is a joint venture of the Company.Significant influence refers to the power to participate in making decisions on the financial andoperating policies of an enterprise, but not the power to control, or jointly control, the formulationof such policies with other parties. If the Company can exert significant influence on investees,investees shall be associates of the Company.
2. Determination of initial investment cost
(1) Long-term equity investments formed by business combination
Business combination under common control: if the Company pays cash, transfers non-cash assetsor assumes debts, and issues equity securities as the combination consideration, the share of bookvalue of acquiring the owners' equity of the combined party in the ultimate controller'sconsolidated financial statements is taken as the initial investment cost of long-term equityinvestments on the combination date. In case the Company can exercise control over the investeeunder common control for additional investments or other reasons, the initial investment cost oflong-term equity investments should be recognized at the share of book value of net asset of thecombined party after the combination in the consolidated financial statements of the ultimatecontroller on the combination date. If there is a difference between the initial investment cost ofthe long-term equity investments on the combination date and the sum of the book value of thelong-term equity investments before combination and the book value of the consideration newlypaid by shares acquired on the combination date, the difference shall be used to adjust the equitypremium; and if the equity premium is insufficient to be offset, retained earnings shall be offset.Business combination not under common control: the Company shall use the combination costdetermined on the purchase date as the initial investment cost of long-term equity investments. Ifit is possible to exercise control investees that is not under common control due to additionalinvestment or other reasons, the sum of the book value of the original equity investments plus thecost of the new investment will be used as initial investment cost accounted under the cost method.
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(2) Long-term equity investments obtained through other means
For long-term equity investments acquired from cash payment, the initial investment cost is theactually paid purchasing cost.For the long-term equity investments acquired by issuing equity securities, the initial investmentcost is the fair value of the issued equity securities.On the premise that exchange of non-monetary assets is of commercial nature and the fair value ofthe asset traded in and out can be measured reliably, the initial investment cost of long-term equityinvestments traded in with non-monetary asset should be determined according to the fair value ofthe asset traded out and relevant taxes and surcharges payable, unless any concrete evidenceindicates that the fair value of the asset traded in is more reliable; For exchange of non-monetaryassets that do not meet the above premise, the book value of the asset traded out and relevant taxesand surcharges payable should be recognized as the initial investment cost of the long-term equityinvestments traded.For long-term equity investments obtained through debt restructuring, its book value is determinedby the fair value of the abandoned creditor's right and the other taxes directly attributable to theassets, and the difference between the fair value of the abandoned creditor's right and the bookvalue is included into the current profit or loss.
3. Subsequent measurements and recognition of profit or loss
(1) Long-term equity investments accounted for under the cost method
The Company's long-term equity investments in subsidiary is accounted for under the cost method.Except for the actual price paid for acquisition of investment or the cash dividends or profitscontained in the consideration which have been declared but not yet distributed, the Companyrecognizes the investment income in the current period at the cash dividends or profits declared bythe investee.
(2) Long-term equity investments accounted for under the equity method
Long-term equity investments in associates and joint ventures are accounted for under the equitymethod. If the initial investment cost is in excess of the share of fair value of identifiable net assetsin the investee when the investment is made, the difference will not be adjusted to the initialinvestment cost of long-term equity investments; if the initial investment cost is in short of theshare of fair value of identifiable net assets in the investee when the investment is made, thedifference will be included in the current profit or loss.The Company should recognize the investment income and other comprehensive incomerespectively in accordance with its share of net profit or loss and other comprehensive incomerealized by the investees that it should enjoy or share, and adjust the book value of long-termequity investments; The book value of long-term equity investments will be reduced accordinglyin the light of the profits or cash dividends that the investee declares to distribute; For otherchanges in the owners' equity of investees other than net profit or loss, other comprehensiveincome and profit distribution, the book value of long-term equity investments is adjusted andincluded in owners' equity.When confirming the shares of net profit or loss of the investee which the Company shall enjoy,based on the fair value of the identifiable net assets of the investee at the time of acquisition of theinvestment, the Company confirms the net profit of the investee after adjustment in accordancewith the Company's accounting policies and the accounting period. During the period when theinvestment is held, if the investees prepares consolidated financial statements, the accounting shallbe made based on the amount attributable to investees in net profit, other comprehensive incomeand other changes in owners' equity in the consolidated financial statements.When the Company recognizes the losses of investees that it should share, it shall proceed in thefollowing order: Firstly, reduce book value of long-term equity investments. Secondly, if the bookvalue of long-term equity investments is not sufficient to offset it, the investment losses willcontinue to be recognized to the extent of book value of other long-term interests that essentiallyconstitute a net investment of the investees, to offset the book value of long-term receivables, etc.
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Finally, after the above processing, if the enterprise still bears additional obligations according tothe investment contract or agreement, the estimated liabilities will be recognized based on theestimated obligations and included in the current investment losses.
(3) Disposal of long-term equity investments
When disposing of long-term equity investments, the difference between the book value and theactual price obtained shall be included in the current profit or loss.When disposing of long-term equity investments accounted for under the equity method, theportion originally included in other comprehensive income will be accounted for in acorresponding ratio on the same basis as the investees' direct disposal of relevant assets orliabilities. The owners' equity recognized due to the changes in owners' equity other than net profitor loss, other comprehensive income, and profit distribution shall be carried forward to the currentprofit or loss on a proportional basis, except for other comprehensive income arising from theinvestee's remeasurement of changes in net liabilities or net assets under the defined benefit plans.If common control or significant influence on investees is lost due to the disposal of part equityinvestments or other reasons, the remaining equity after disposal shall be calculated in accordancewith recognition and measurement standards of financial instruments. The difference between itsfair value and book value at the date of loss of common control or significant influence isrecognized in the current profit or loss. For other comprehensive income recognized due to theoriginal equity investments accounted for under the equity method, it shall be accounted for on thesame basis as the investees' direct disposal of relevant assets or liabilities when the accounting forequity method is no longer adopted. The owners' equity recognized due to other changes inowners' equity of the investee other than net profit or loss, other comprehensive income and profitdistribution will all be transferred to the current profit and loss when accounted for under theequity method is terminated.If the Company loses right of control over investees due to the disposal of part of equityinvestments or increase in capital of the subsidiary by other investors, resulting in a decrease in theCompany's shareholding ratio, when preparing individual financial statements, if the remainingequity can exercise common control or significant influence over investees, it shall be accountedby under equity method, which shall be deemed to be adjusted under the equity method since thetime of acquisition. If the remaining equity cannot common control or exert significant influenceon investees, it shall be accounted for in accordance with the relevant provisions of recognitionand measurement standards of financial instruments, and the difference between its fair value andbook value on the date of loss of control shall be included in the current profit or loss.Where the equity disposed of are acquired through business combination as a result of additionalinvestment and other reasons, if the remaining equities after disposal are calculated under the costmethod or equity method upon preparation of separate financial statements, other comprehensiveincome and other owners' equity recognized in equity investments held before the purchase date asa result of accounting under equity method shall be carried forward pro rata; If the remainingequity after disposal is accounted for in accordance with recognition and measurement standardsof financial instruments, other comprehensive income and other owners' equity will be carriedforward.
(XV) Investment propertiesThe investment properties refer to the properties held for earning rentals or/and capitalappreciation, including leased land use right, land use right held for transfer upon appreciation,and leased building (including self-built buildings or buildings developed for renting or buildingsunder construction or development for future renting).The Company measures its existing investment properties under the cost model. For investmentproperties measured under the cost model - in terms of buildings for renting, the same depreciationpolicy as that for fixed assets of the Company is adopted; for land use rights for renting, the sameamortization policy as that for intangible assets is adopted.
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(XVI) Fixed assets
1. Recognition conditions of fixed assets
Fixed assets refer to the tangible assets of the Company held for the purpose of producingcommodities, rendering services, renting or business management with service life exceeding oneaccounting year. Fixed assets are recognized when the following conditions are met at the sametime:
(1) It is very likely that the economic benefits associated with the fixed assets will flow into theenterprise;
(2) The cost of the fixed assets can be measured reliably.
2. Depreciation method
The Company provides the depreciation based on the production method within its service lifeafter deducting estimated net residual value and accumulated provision for impairment from thecost of gas turbine generator unit; Other fixed assets are depreciated under straight-line methodover their service life based on their costs less estimated net residual value and accumulatedprovision for impairment.If service life of the various components of fixed assets are different or they provide economicbenefits to the enterprise in different ways, different depreciation rates or depreciation methodshould be selected and depreciation should be accrued separately.The depreciation method, depreciation life, residual rate and annual depreciation rate of fixedassets are as follows:
| Category | Depreciation method | Depreciation life (years) | Residual rate(%) | Annual depreciation rate (%) |
| Houses and buildings | Straight-line method | 20 years | 10 | 4.5 |
| Machinery equipment gas turbine generator unit | Workload method | 10 | ||
| Machinery equipment (except for gas turbine generator unit) | Straight-line method | 15-20 years | 10 | 4.5-6 |
| Means of transport | Straight-line method | 5 years | 10 | 18 |
| Others | Straight-line method | 5 years | 10 | 18 |
3. Subsequent expenditure
Subsequent expenditures on fixed assets refer to renovation and reconstruction expenses, repaircosts, etc. incurred during the use of fixed assets. Subsequent expenditures such as the renewaland transformation of fixed assets, if they meet the conditions for capitalization, shall be includedin the cost of fixed assets, and book value of the replaced part shall be deducted; The repair costsof fixed assets that do not meet the conditions for capitalization are included in the current profitor loss when incurred.
(XVII) Construction in progressThe Company's construction in progress are classified into infrastructure projects, technicaltransformation projects, integrated energy service, information construction, etc.The initial book values of the fixed assets are stated at necessary expenditures incurred before
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construction in progress reaches the working conditions for its intended use. For construction inprogress that has reached working conditions for its intended use but for which the completion ofsettlement has not been handled, it shall be transferred into fixed assets at the estimated valueaccording to the project budget, construction price, actual cost, etc. from the date when it reachesthe working conditions for its intended use. And the fixed assets shall be depreciated inaccordance with the Company’s policy on depreciation of fixed assets. Adjustment shall be madeto the originally and provisionally estimated value based on the actual cost after the completion ofsettlement is handled, but depreciation provided will not be adjusted.The standards for construction in progress to be transferred to fixed assets when they reach thecondition for its intended use are as follows:
| Item | Criteria and time point for transfer to fixed assets |
| Houses and buildings | (1) The main construction project and supporting projects have been substantially completed; (2) When the construction project meets the requirements for predetermined design, it must be accepted by the survey, design, construction, supervision and other entities; (3) Acceptance by external departments such as fire protection department, state-owned land department and planning department, etc.; (4) If a construction project has reached the intended usable state but has not yet completed the final settlement, it shall be transferred to fixed assets at an estimated value based on the actual cost of the project from the date on which it reaches the intended usable state. |
| Machinery equipment | (1) Relevant equipment and other supporting facilities have been installed; (2) The equipment can maintain normal and stable operation for a period of time after debugging; (3) The production equipment can stably produce qualified products over a period of time; (4) The equipment has been inspected and accepted by asset managers and users. |
(XVIII) Borrowing costs
1. Recognition principles for capitalization of borrowing costs
The borrowing costs include borrowing interest, amortization of discounts or premiums, auxiliaryexpenses, and exchange differences arising from foreign currency borrowings, etc.The borrowing costs incurred by the company that can be directly attributed to the purchase,construction or production of assets that meet the capitalization conditions shall be capitalized andincluded in the cost of the related assets; Other borrowing costs are recognized as expenses basedon the amount incurred when incurred and included in the current profit or loss.Assets eligible for capitalization refer to fixed assets, investment properties, inventories and otherassets which may reach their intended use or sale status only after long-time acquisition andconstruction or production activities.Capitalization of borrowing costs begins when the following conditions are met at the same time:
(1) Asset expenditures having occurred. Asset expenditures include expenditures in the form ofcash payments, transfers of non-cash assets or interest-bearing debts for the acquisition,construction or production of assets that meet capitalization conditions;
(2) Borrowing costs having been incurred;
(3) The purchase, construction or production activities necessary to bring the asset to its intendedusable or salable state having begun.
2. Period of capitalization of borrowing costs
The capitalization period refers to the period from the time point at which capitalization ofborrowing costs commences to the time point at which capitalization ceases, excluding the periodduring which capitalization of borrowing costs is suspended.
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When the acquisition, construction or production of assets that meet the capitalization conditionsreaches the intended usable or salable state, the capitalization of borrowing costs ceases.When part of the projects in the acquisition, construction or production of assets that meet thecapitalization conditions are completed and can be used independently, the capitalization ofborrowing costs of this part of the assets ceases.If each part of an asset purchased, constructed or produced is completed separately, but it cannotbe used or sold until the entirety is completed, capitalization of borrowing costs stops when theentire asset is completed.
3. Capitalization suspension period
If an asset that meets the capitalization conditions is abnormally interrupted during the acquisition,construction or production process, and the interruption lasts for more than 3 months, thecapitalization of borrowing costs is suspended; if the interruption is a necessary procedure for theacquired, constructed or produced assets that meet the capitalization conditions to reach theintended usable or salable state, the capitalization of borrowing costs continues. Borrowing costsincurred during the interruption period are recognized as current profit or loss, and thecapitalization of borrowing costs continues until the acquisition, construction or productionactivities of the assets restart.
4. Calculation method for capitalization of borrowing costs rate and capitalization amountFor special borrowings for the purpose of purchasing, constructing or producing assets eligible forcapitalization, the capitalization amount of borrowing costs is determined by the actual borrowingcosts incurred in the period of the special borrowing, less the amount of interest income earned onthe unused borrowed funds deposited in the bank or investment income earned on the temporaryinvestment.For general borrowings taken up for the acquisition or production of assets eligible forcapitalization, the amount of borrowing costs to be capitalized is determined by multiplyingweighted average of the asset expenditures that exceed special borrowings by the capitalizationrate of the general borrowings general borrowings used. The capitalization rate is calculated anddetermined based on the weighted average interest rate of general borrowings.
(XIX) Intangible assetsIntangible assets including land use right, patented technology, software, etc., are initiallymeasured at actual cost.
1. Valuation method of intangible assets
(1) The Company initially measures intangible assets at cost when acquiring them;The cost of outsourced intangible assets includes the purchase price, relevant taxes and otherexpenses directly attributable to bringing the assets to the intended use. If the purchase price ofintangible assets is deferred beyond normal credit conditions and is essentially financing in nature,the cost of intangible assets is determined based on the present value of the purchase price.The book value of intangible assets acquired in a debt restructuring for use by the debtor against adebt are determined based on the fair value of the claim waived and other costs directlyattributable to bringing the asset to its intended use, such as taxes, and the difference between thefair value of the claim waived and the book value of the intangible assets is recognized in currentprofit or loss.Provided that the exchange of non-monetary assets has commercial substance and the fair value ofboth the assets exchanged in and the assets exchanged out can be measured reliably, the intangibleassets exchanged in by exchange of non-monetary assets are recorded at their fair value based onthe fair value of the assets exchanged out, unless there is conclusive evidence that the fair value ofthe assets exchanged in is more reliable; For exchange of non-monetary assets that do not meet theabove prerequisites, the book value of the exchanged assets and related taxes payable arerecognized as the cost of the intangible assets exchanged, and profit or loss is derecognized.
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(2) Subsequent measurement
Analyze and determine service life of intangible assets when acquiring them.For intangible assets with limited service life, they are amortized on straight-line method withinthe period that they bring economic benefits to the enterprise; if it is not foreseeable that intangibleassets will bring economic benefits to the enterprise, they are regarded as intangible assets withindefinite service life and are not amortized.
2. Estimated service life of intangible assets with limited service life
For Intangible assets with limited service life, their original values less the estimated net residualvalue and the cumulative amount of the provision for impairment that has been made areamortized in equal installments using the straight-line method over the estimated service life fromthe time they are available for use. Intangible assets with indefinite service life are not amortized.At the end of the period, service life and amortization method of intangible assets with limitedservice life are reviewed and changes, if any, are treated as changes in accounting estimates. Thespecific amortization period are as follows:
| Category | Amortization method | Amortization period (year) | Basis for use |
| Land use right | Straight-line method | 30-50 | Within the validity period of the land title certificate |
| Patented technology | Straight-line method | 10 | Patent certificate |
| Software | Straight-line method | 5 | Software availability period |
3. Basis for judgment of intangible assets with indefinite service life and procedures forreviewing their service lifeWhen reviewing the service life of intangible assets with indefinite service life, the service life isestimated and amortized in accordance with the amortization policy for intangible assets withlimited service life, if there is evidence that the period over which the intangible asset will provideeconomic benefits to the enterprise is foreseeable.
4. Specific criteria for dividing research and development stages
Expenditures on the Company's internal research and development projects are divided intoresearch stage expenditures and development stage expenditures.Research stage: the stage of creative and planned investigation and research activities to obtainand understand new scientific or technical knowledge.Development stage: the stage in which research results or other knowledge are applied to a certainplan or design to produce new or substantially improved materials, devices, products, etc. beforecommercial production or use.Development stage expenditures meet specific criteria for capitalizationExpenditures during the development stage of internal research and development projects arerecognized as intangible assets when the following conditions are met:
1. Being technically feasible to complete the intangible assets so that it can be used or sold;
2. Having the intention to complete the intangible assets and use or sell them;
3. The manner in which intangible assets generate economic benefits (including where it can bedemonstrated that a market exists for the product to be produced using such intangible assets orthat a market exists for the intangible assets themselves and that the intangible assets are to beused internally) demonstrating their usefulness;
4. Having sufficient technical, financial and other resource support to complete the developmentof the intangible assets, and having the ability to use or sell the intangible assets;
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5. Expenditures attributable to the development stage of the intangible assets being able to bemeasured reliably.
(XX) Asset impairmentLong-term assets such long-term equity investments, investment properties measured under thecost model, fixed assets, construction in progress, and intangible assets with limited service lifeare subject to impairment test if there are signs of indications of impairment on the balance sheetdate. If the results of impairment test indicate that the recoverable amount of assets is less than itsbook value, a provision for impairment is made based on the difference and the assets arerecognized as impairment losses. The recoverable amount is the net of the fair value of the assetsless costs of disposal and the current value of the expected future cash flows from the assets(whichever is higher). Provision for asset impairment is calculated and recognized on the basis ofindividual assets. If it is difficult to estimate the recoverable amount of an individual asset, therecoverable amount of an asset group is determined based on the asset group to which the assetbelongs. The asset group is the smallest combination of assets that can independently generatecash inflows.Goodwill, intangible assets with indefinite service life, and intangible assets that have not yetreached a usable state are subject to impairment test at least at the end of each year.The Company performs the impairment test for goodwill. For the book value of goodwill arisingfrom a business combination, the Company amortizes it to the relevant asset group on a reasonablemethod from the purchase date; if it is difficult to be amortized to the relevant asset group, it isamortized to the relevant portfolio of asset groups. When amortizing the book value of goodwill,the Company amortizes it based on the relative benefits that the relevant asset groups or portfolioof asset groups can obtain from the synergies of business combination, and performs goodwillimpairment test on this basis.In the impairment test for the relevant asset group or combination of asset groups containinggoodwill, if there are indications of impairment for the asset group or combination of asset groupsrelated to goodwill, the asset group or combination of asset groups that does not contain goodwillis first tested for impairment, the recoverable amount is calculated and compared with the relevantbook value, and corresponding impairment losses are recognized. An impairment test is thenperformed on the asset group or combination of asset groups containing goodwill by comparingthe book value of the relevant asset group or combination of asset groups (including the part of thebook value of the goodwill apportioned to it) with its recoverable amount. If the recoverableamount of the relevant asset group or combination of asset groups is less than its book value,impairment losses on goodwill are recognized.Once the above-mentioned asset impairment losses are recognized, they will not be reversed insubsequent accounting periods.
(XXI) Long-term deferred expenses
1. Amortization method for long-term deferred expenses
The Company's long-term deferred expenses refer to various expenses that have been incurred butthe benefit period is more than one year (excluding one year). Long-term deferred expenses areamortized in installments according to the benefit period of the expense item. If a long-termdeferred expense item cannot benefit future accounting periods, all the amortized value of the itemthat has not been amortized will be transferred to the current profit or loss.The renovation of lease premises is recognized as long-term deferred expenses and amortized overthe shorter of the following two periods:
(1) The estimated service life of the renovation (the estimated time until the next renovation);
(2) The estimated remaining service life of the main structure of the property
The Company's subsequent expenditure that do not meet the conditions for fixed assets
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recognition, such as capital repairs, are recognized as long-term deferred expenses in the year theyoccur, and are subsequently amortized in installments during the benefit period.
2. Amortization period of long-term deferred expenses
| Item | Amortization period |
| Renovation of rented fixed assets | The estimated service life of the renovation and the estimated remaining service life of the main structure of the property (whichever is shorter). |
| Expenditures for capital repairs of fixed assets | Overhaul cycle for gas generator unit |
(XXII) Contract liabilitiesContract liabilities refer to the Company's obligation to transfer goods or services to customers forconsideration received or receivable from customers. Contract assets and contract liabilities underthe same contract are presented in the net term.(XXIII) Employee compensation
1. Accounting treatments of short-term compensation
During the accounting period when employees provide services for the Company, the Companyrecognizes the actual short-term compensation as a liability and includes it in the current profit orloss or related asset costs.The Company contributes social insurance premiums and housing fund for its employees, as wellas labor union fund and employee education expenses withdrawn as required, and calculates anddetermines the corresponding amount of employee compensation in accordance with theprescribed accrual basis and accrual ratio during the accounting period in which the employeesrender services to the Company.For non-monetary employee benefits, if they can be measured reliably, they are measured at fairvalue.
2. Accounting treatments for post-employment benefits
Defined contribution plansThe Company pays basic endowment insurance and unemployment insurance for its employees inaccordance with relevant regulations of the local government. During the accounting period whenemployees provide services to the Company, the amount payable is calculated based on thepayment base and ratio stipulated by the local government, and is recognized as a liability andincluded in current profit or loss or related asset costs.In addition to basic endowment insurance, the Company has also established an enterprise annuitypayment system (supplementary endowment insurance)/enterprise annuity plan in accordance withthe relevant policies of the national enterprise annuity system. The Company pays contributions tolocal social insurance institutions/annuity plans based on a certain ratio of total employee wages,and includes the corresponding expenditures in current profit or loss or related asset costs.
3. Accounting treatments for dismissal benefits
When the Company cannot unilaterally withdraw dismissal benefits provided by the terminationof labor relationship plan or redundancy proposal, or when it recognizes the costs or expensesrelated to the restructuring involving the payment of dismissal benefits (whichever is earlier),employee compensation liabilities arising from dismissal benefits are recognized and included incurrent profit or loss.
(XXIV) Estimated liabilities
1. Recognition criteria for estimated liabilities
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The Company recognizes the obligations related to contingencies such as litigation, debtguarantees, onerous contracts, restructuring matters, etc. as estimated liabilities when thefollowing conditions are met at the same time:
(1) The obligation being the current obligation of the Company;
(2) The performance of the obligation being likely to cause economic benefits to flow out theCompany;
(3) The amount of the obligation being able to be measured reliably.
2. Measurement methods for various types of estimated liabilities
(1) When the obligations generated from such contingencies as external guarantee, contentiousmatters, products quality guarantees and onerous contracts are present obligations of the Company,the performance of such obligations is likely to result in outflow of economic benefits from theCompany and if the amount of the obligations can be measured reliably, such obligations shall berecognized as estimated liabilities by the Company.
(2) The estimated liabilities of the Company are initially measured at the best estimate of expensesrequired for the performance of relevant present obligations, and the book value of the estimatedliabilities shall be reviewed on the balance sheet date.The Company's estimated liabilities are initially measured at best estimate of the expendituresrequired to perform the related present obligations.When determining best estimate, the Company comprehensively considers factors such as risks,uncertainty and time value of money related to contingencies. Where the effect on the time valueof money is material, the best estimate is determined by discounting the relevant future cashoutflows.Best estimate is treated separately as follows:
If there being a continuous range (or interval) of required expenditures, and various outcomeswithin the range are equally likely to occur, best estimate is determined based on the middle valueof the range, that is, the average of the upper and lower limits.If there being no continuous range (or interval) of required expenditures, or if there being acontinuous range but the probabilities of occurrence of the various results within the range are notthe same, the best estimate is determined on the basis of the most probable amount to be incurredif the contingency relates to a single item; if the contingency involves multiple projects, bestestimate is calculated and determined based on various possible outcomes and related probabilities.If all or part of the Company's expenses required to settle estimated liabilities are expected to becompensated by a third party, the compensation amount is recognized separately as an asset whenit is basically certain that it can be received. The recognized compensation amount shall notexceed the book value of estimated liabilities.
(XXV) Revenue
1. General principles
If the Company fulfills its performance obligations under a contract, that is, when the customerobtains right of control of the relevant goods or services, revenue is recognized. Performanceobligations are contractual commitments in which the Company transfers clearly distinguishablegoods or services to the customer. Obtaining right of control of the relevant goods or servicesrefers to the ability to control the use of the goods or the provision of the services and to derivevirtually all of the economic benefits therefrom.
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If one of the following conditions is met, it is performance obligations to be fulfilled within acertain period of time, and the Company recognizes revenue over a period of time in accordancewith the performance progress: (1) the customer obtaining and consuming the economic benefitsarising from the Company's performance at the same time as the Company's performance; (2) thecustomer being able to control the goods under construction during the Company's performance;
(3) the goods produced by the Company during the performance of the contract havingirreplaceable uses, and the Company having the right to collect payment for the cumulativeperformance part completed so far during the entire contract period. Otherwise, the Companyrecognizes revenue at the time point at which the customer obtains the right of control of therelated goods or services.
2. Sales with quality assurance clauses
For sales with a quality guarantee clause, if the quality guarantee provides a separate service to thecustomer in addition to the assurance that the goods or services sold meet standards specifiedherein, the quality guarantee constitutes an individual performance obligation.Otherwise, theCompany accounts for the quality assurance liability in accordance with the provisions of theAccounting Standards for Business Enterprises No. 13 - Contingencies.
3. Main responsible persons and agent
The Company identifies itself as the person with main liabilities or the agent when engaging intransactions based on whether it has the right of control of the goods or services beforetransferring them to the customer.If the Company has the right of control of the goods or servicesbefore transferring them to the customer, the Company identifies itself as the person with mainliabilities and recognizes revenue based on the total consideration received or receivable;otherwise, the Company identifies itself as the agent and recognizes revenue based on the amountof commissions or handling charges that may be received. This amount is determined according tothe net amount after deducting the price payable to other related parties from the totalconsideration received or receivable, or according to the specified commissions amount, ratio orother factors.
4. Principles
If the Company fulfills its performance obligations under a contract, that is, when the customerobtains right of control of the relevant goods or services, revenue is recognized. Obtaining right ofcontrol of the relevant goods or services refers to the ability to control the use of the goods or theprovision of the services and to derive virtually all of the economic benefits therefrom.
(1) Revenue from power production and sales
When the power is transmitted to the power grid company specified in the power sales contract,which means the power grid company has obtained the right of control of the power, the Companyshall recognize the reported sales revenue.
(2) Revenue from integrated energy services
Revenue from integrated energy services between the Company and its customers mainly includesrevenue from engineering labor and services such as operation and maintenance, management,commissioning, and overhaul. If multiple performance obligations are involved, they shall be splitreasonably. The equipment sales shall be processed according to the sales of goods business. Theprovision of labor and services is generally dealt with according to the output method based on theperformance obligation fulfilled within a certain time period. Requirements are as follows:
1) Sales of supporting equipment
For sales of equipment, revenue shall be recognized when the customer obtains the right of controlthe equipment. In general, the recognition time point shall be the time when the customer signsafter receiving the completed or delivered products. Based on the terms of the Contract, therequired attachments for revenue recognition include but are not limited to the sales contract,commodity shipping order, customer receipt sheet, equipment acceptance sheet or customsdeclaration form, etc.
2) Labor and services provided
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① The recognition and settlement of revenue from such business shall comply with the provisionsof the business contract signed by both parties. At the end of each settlement period, the necessarydocuments stipulated in the Contract, such as the attendance sheet, service application form, etc.confirmed by both parties shall be provided as the proof of the cumulative revenue recognition ofthe settlement period and materials for collecting service price.
① On each balance sheet date within the settlement period, revenue shall be tentatively estimatedbased on the performance progress. When using the output method to determine the performanceprogress, the progress is usually determined in combination with the actual measured completionprogress, assessment of achieved results, achieved milestones, progress of the schedule, completedor delivered products and other output indicators.
(XXVI) Contract costsCosts of obtaining the contractThe incremental costs incurred by the Company to obtain the Contract (that is, costs which wouldnot have been incurred without obtaining the Contract) that may be recovered shall be recognizedas an asset and amortized on the same basis as the revenue recognition of goods or services relatedto the asset. In addition, the asset shall be included in the current profit or loss. If the amortizationperiod of the asset does not exceed one year, the asset shall be included in the current profit or losswhen incurred. Other expenses incurred by the Company to obtain the contract shall be includedin the current profit or loss when incurred, unless otherwise the expenses are borne by thecustomer.Costs of performing the contractThe costs incurred by the Company to perform the Contract are recognized as an asset if they donot fall within the scope of other provisions specified in the Accounting Standards for BusinessEnterprises other than the revenue standards and meet all the following conditions: (1) when thecost is directly related to an existing or expected contract; (2) when the cost increases theCompany resources for fulfilling performance obligations in the future; (3) when the cost isexpected to be recovered. The above-mentioned asset shall be amortized on the same basis as therevenue recognition of goods or services related to the asset and included in the current profit orloss.Impairment of contract costsWhen recognizing impairment losses of assets related to contract costs, the Company shall firstrecognize impairment losses of other assets related to the Contract that are recognized inaccordance with other relevant accounting standards for business enterprises; then, if book value ishigher than difference between the remaining consideration expected to be obtained by theCompany for the transfer of the goods related to the asset and the estimated cost to be incurred forthe transfer of the related goods, provision for impairment shall be made for the excess, and itshall be recognized as the asset impairment loss.If the factors of impairment in the previous period subsequently changed, causing theaforementioned difference to be higher than the book value of the asset, provision for assetimpairment that has been made previously shall be reversed and the higher part shall be includedin the current profit or loss, but the book value of the asset after the reversal shall not exceed thebook value of the asset on the date of reversal assuming no provision for impairment is made.
(XXVII) Government subsidies
1. Type
Government subsidies refer to the monetary and non-monetary assets obtained by the Companyfrom the government free of charge. Government subsidies are divided into asset-relatedgovernment subsidies and income-related government subsidies.Asset-related government subsidies refer to government subsidies obtained by the Company and
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used to purchase, construct or otherwise form long-term assets. Income-related governmentsubsidies refer to government subsidies other than asset-related government subsidies.
2. Recognition time point
At the end of the reporting period, if there is evidence that the Company can meet the relevantconditions stipulated in the financial support policy and is expected to receive financial supportfunds, government subsidies shall be recognized based on the amount receivable. Otherwise,government subsidies shall be recognized when they are actually received.If government subsidies are monetary assets, they shall be measured at the amount received orreceivable. If government subsidies are non-monetary assets, they shall be measured at the fairvalue; If the fair value cannot be obtained reliably, government subsidies shall be measured at thenominal amount (RMB 1). Government subsidies measured at the nominal amount shall bedirectly included in the current profit or loss.
3. Accounting treatment
Asset-related government subsidies shall be used to offset the book value of the relevant assets orrecognized as the deferred income. Government subsidies which are recognized as the deferredincome shall be included in the current profit or loss in installments according to a reasonable andsystematic method within service life of the relevant assets (if the government subsidies arerelated to the daily activities of the Company, the subsidies shall be included in other income; ifthe government subsidies are not related to the daily activities of the Company, the subsidies shallbe included in non-operating revenue);income-related government subsidies that are used to compensate the Company for relevant costsor losses in subsequent periods shall be recognized as the deferred income and included in thecurrent profit or loss (if the government subsidies are related to the daily activities of the Company,the subsidies shall be included in other income; if the government subsidies are not related to thedaily activities of the Company, the subsidies shall be included in non-operating revenue) or usedto offset relevant costs or losses; if the subsidies are used to compensate for the relevant costs orlosses incurred by the Company, the subsidies shall be directly included in the current profit orloss (if the government subsidies are related to the daily activities of the Company, the subsidiesshall be included in other income; if the government subsidies are not related to the daily activitiesof the Company, the subsidies shall be included in non-operating revenue) or used to offsetrelevant costs or losses.The policy-based preferential loan interest subsidies obtained by the Company will be accountedfor differently in the following two situations:
(1) if the central finance allocates interest subsidies to the lending bank, and the lending bankprovides loans to the Company at a policy-based preferential interest rate, the Company will usethe actual loan amount received as the entry value of the loan and calculate related borrowingcosts based on the loan principal and the policy-based preferential interest rate.
(2) if the central finance directly allocates interest subsidies to the Company, the Company willuse the corresponding interest subsidies to offset related borrowing costs.
(XXVIII) Deferred tax assets and deferred tax liabilitiesFor deductible temporary differences, deferred tax assets shall be recognized with the taxableincome that is likely to be obtained in the subsequent period to offset deductible temporarydifferences as the limit. For deductible losses and tax credits which can be carried forward tosubsequent years, the corresponding deferred tax assets shall be recognized with the future taxableincome that is likely to be obtained to offset deductible losses and tax credits as the limit.For taxable temporary differences, except in special circumstances, the deferred tax liabilities shallbe recognized.Special circumstances in which deferred tax assets or deferred tax liabilities are not recognizedinclude: initial recognition of goodwill; other transactions or matters, except for business
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combination, that affect neither accounting profits nor taxable income (or deductible losses) whenincurred.When the Company is entitled to the legal right to settle on a net basis and intends to settle on anet basis or obtain assets and pay off liabilities at the same time, the current income tax assets andcurrent income tax liabilities shall be reported at the net amount after offsetting.When the Company is entitled to settle current income tax assets and current income tax liabilitieson a net basis, and deferred tax assets and deferred tax liabilities are related to income tax leviedby the same taxation department on the same taxpayer or different taxpayers, but in eachsignificant period when deferred tax assets and liabilities are reversed, if the taxpayer involvedintends to settle current income tax assets and liabilities on a net basis or obtain assets and pay offliabilities at the same time, deferred tax assets and deferred tax liabilities shall be reported at thenet amount after offsetting.
(XXIX) LeaseLease refers to a contract whereby the lessor transfers the right to use an asset to the lessee inexchange for consideration for a certain period of time.
1. The Company acts as a lessee
The Company shall determine the right-of-use assets on the starting date of the lease term andrecognize lease liabilities based on the present value of the unpaid lease payments. Leasepayments include fixed payments and amounts payable when the purchase option or option toterminate lease is likely to be exercised. Variable rent determined based on a certain ratio of salesamount shall not be included in lease payments and shall be included in the current profit or losswhen actually incurred.The Company's right-of-use assets include leased houses and buildings, machinery equipment,means of transport, computers and electronic equipment, etc.For short-term leases with lease term of no more than 12 months and leases of low value assetswith a single asset at a low value when it is new, the Company will not to recognize right-of-useassets and lease liabilities, and the relevant rental expenses will be calculated based on thestraight-line method in each period during lease term and included in the current profit or loss orrelated asset costs.
2. The Company acts as a lessor
Financing lease refers to the lease that basically transfers all the risks and rewards related to theownership of leased assets. Other leases are operating leases.
(1) Operating leases
When the Company rents out its own buildings, machinery equipment and means of transport, therental income from operating leases is recognized in accordance with the straight-line methodduring lease term. Variable rents, which are determined by the Company at a certain percentage ofsales, are included in rental income when actually incurred.
(2) Financing lease
On the commencement date of the lease term, the Company recognizes the finance leasereceivables for the financing lease and terminates the derecognition of related assets. TheCompany lists finance lease receivables as long-term receivables, while the finance leasereceivables collected within one year (including) from the balance sheet date are listed as non-current assets due within one year.
(XXX) Special reservesThe Safety production costs extracted from the Company's power production and sales business inaccordance with national regulations are included in the cost of related products or current profit
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or loss as well as in the "special reserve" account. The currently accrual standard is based onoperating revenue of the previous year, using an excess regressive method to determine the accrualamount for the current year. Such amount shall be withdrawn evenly every month, and be includedin the cost of related products or current profit or loss as well as in the "special reserve" account.When the Company uses special reserve, the amount shall be charged directly to the specialreserve if it belongs to cost of spending; if fixed assets are formed, they will be recognized asfixed assets when such assets reach the intended usable state; at the same time, special reserve isoffset according to the cost of fixed assets formed, and accumulated depreciation of the sameamount shall be recognized. Such fixed assets will no longer be depreciated in subsequent periods.
(XXXI) Changes in significant accounting policies and accounting estimates
1. Significant changes in accounting policies
(1) Interpretation No. 16 of Accounting Standards for Business Enterprises
The Ministry of Finance issued the Interpretation No. 16 of Accounting Standards for BusinessEnterprises on December 13, 2022. The Company implemented the "Initial recognition of deferredincome taxes related to assets and liabilities arising from a single transaction is not applicable"from January 1, 2023, and adjusted the cumulative impact to the initial retained earnings and otherrelated financial statement items for the earliest period in which the financial statements arepresented. The implementation of the above accounting policies had no impact on the Company.
2. Changes in significant accounting estimates
The main accounting estimates had no chang during the reporting period.
IV. Taxes(I) Main tax type and rates
| Tax type | Tax basis | Tax rate |
| Value-added tax | The output tax is calculated based on revenue from the sale of goods and taxable services calculated according to the tax law. After deducting the input tax allowed to be deducted in the current period, difference shall be the value-added tax payable. | 13%、9%、6%、5%、3% |
| Urban maintenance and construction tax | Based on the actual value-added tax and consumption tax paid | 7% |
| Education surcharge | Based on the actual value-added tax and consumption tax paid | 3% |
| Local education surcharge | Based on the actual value-added tax and consumption tax paid | 2% |
| Corporate income tax | Based on taxable income | Except for the following enterprises that enjoy tax preferential treatment, tax shall be paid at 25% of the taxable income. |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 27
| Tax type | Tax basis | Tax rate |
| Urban land use tax | For the actual occupied land area of industrial land in Nanshan District, Shenzhen, tax shall be paid at RMB 2-8/square meter. For the actual occupied land area of industrial land in Zhongshang, tax shall be paid at RMB 1/square meter. | |
| Foreign taxes | Foreign taxes shall be calculated according to the tax regulations of each overseas country and region. |
The taxpayers with different corporate income tax are as follows:
| Taxpayer name | Income tax rate |
| The Company | 15% |
| Shenzhen Nanshan Power Engineering Company | 15% |
(II) Main tax preferential treatment
1. Corporate income tax
(1) The Company obtained a national high-tech enterprise certificate numbered GR202144204080,which is valid for 3 years. From 2021 to 2023, the Company's corporate income tax enjoys apreferential income tax rate of 15% for high-tech enterprise.
(2) Shenzhen Nanshan Power Engineering Company obtained a national high-tech enterprisecertificate numbered GR202344200269, which is valid for 3 years. From 2023 to 2025, theCompany's corporate income tax enjoys a preferential income tax rate of 15% for high-techenterprise.
2. Value-added tax
| Tax type | Company name | Relevant laws, regulations and policies | Approval authority | Approval No. | Preference enjoyed | Validity period |
| Value-added tax | Shenzhen Nanshan Power Environmental Protection Company | Notice on the Catalog of Preferential Value value-added Tax on Products and Services for Comprehensive Utilization of Resources (CS [2015] No. 78) | Shenzhen Qianhai State Taxation Administration | SQSST [2018] No. 18302 | Instant collection/refund of value-added tax for comprehensive resource utilization | August 1, 2020- July 31, 2023 |
| Value-added tax | Shenzhen Nanshan Power Engineering Company | Measures for the Administration of Value-added Tax Exemption for Cross-border Taxable Activities in Replacement of Business Tax with Value-added tax | Shenzhen Qianhai State Taxation Administration | GJSWZJGG [2016] No. 29 | Value-added tax exemption for cross-border taxable activities |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 28
V. Notes to consolidated financial statements items(I) Monetary funds
| Item | Ending balance | Balance at the end of last year |
| Cash on hand | 30,329.83 | 37,698.63 |
| Bank deposits | 310,694,227.98 | 647,983,965.23 |
| Other monetary funds | 5,464,224.68 | 27,474,602.54 |
| Deposits with financial company | ||
| Total | 316,188,782.49 | 675,496,266.40 |
| Including: total amount deposited abroad | 6,105,051.40 | 6,016,949.57 |
The details of monetary funds that have restrictions on their use due to mortgage, pledge orfreezing, as well as those deposited overseas with restrictions on repatriation are as follows:
| Item | Ending balance | Balance at the end of last year |
| L/G deposit | 5,453,862.93 | |
| Deposit for bank acceptance bills | 27,474,594.34 | |
| Total | 5,453,862.93 | 27,474,594.34 |
In addition, as at December 31, 2023, the Company had no monetary funds subject to therestriction to use due to mortgage, pledge or freezing and with potential recovery risks.(II) Financial assets held for trading
| Item | Ending balance | Balance at the end of last year |
| Financial assets measured at fair value with changes included in the current profit or loss | 226,000,000.00 | 440,013,571.10 |
| Including: investments in debt instruments | ||
| Investments in equity instruments | ||
| Derivative financial assets | ||
| Others (note) | 226,000,000.00 | 440,013,571.10 |
| Financial assets designated as measured at fair value and whose changes are recorded in profit or loss for the period | ||
| Including: investments in debt instruments | ||
| Investments in equity instruments | ||
| Total | 226,000,000.00 | 440,013,571.10 |
Note: the balance at the end of the current year is the structured deposits of the Company's idleself-owned funds.
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 29
(III) Accounts receivable
1. Disclosure of accounts receivable on an aging basis
| Aging | Ending balance | Balance at the end of last year |
| Within 1 year | 51,764,528.59 | 103,306,168.76 |
| 1-2 years | 40,359,448.07 | 34,239,288.30 |
| 2-3 years | 21,478,238.86 | |
| Over 3 years | 5,464,799.07 | 5,558,673.67 |
| Subtotal | 119,067,014.59 | 143,104,130.73 |
| Less: provision for bad debts | 7,091,763.49 | 7,270,638.09 |
| Total | 111,975,251.10 | 135,833,492.64 |
2. Accounts receivable are classified and disclosed according to the method of provision forbad debts
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | 5,464,799.07 | 4.59 | 5,464,799.07 | 100.00 | |
| Provision provision for bad debts on a credit risk portfolio basis | 113,602,215.52 | 95.41 | 1,626,964.42 | 1.43 | 111,975,251.10 |
| Total | 119,067,014.59 | 100.00 | 7,091,763.49 | 5.96 | 111,975,251.10 |
| Category | Balance at the end of last year | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | 5,558,673.67 | 3.88 | 5,558,673.67 | 100.00 | |
| Provision provision for bad debts on a credit risk portfolio basis | 137,545,457.06 | 96.12 | 1,711,964.42 | 1.24 | 135,833,492.64 |
| Total | 143,104,130.73 | 100.00 | 7,270,638.09 | 5.08 | 135,833,492.64 |
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（1）Important provision for bad debts on an individual basis
| Name | Balance at the end of last year | Ending balance | ||||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | Provision ratio (%) | Reasons for provision | |
| Shenzhen Petrochemical Oil Products Bonded Trading Co., Ltd. | 3,474,613.06 | 3,474,613.06 | 3,474,613.06 | 3,474,613.06 | 100.00 | Not expected to be recovered |
| China Solibase Engineering Co., Ltd. | 1,137,145.51 | 1,137,145.51 | 1,137,145.51 | 1,137,145.51 | 100.00 | Not expected to be recovered |
| Total | 4,611,758.57 | 4,611,758.57 | 4,611,758.57 | 4,611,758.57 | 100.00 | |
(2) Provision for bad debts by portfolio
| Name of portfolio | Ending balance | ||
| Accounts receivable | Provision for bad debts | Provision ratio (%) | |
| Portfolio II: receivables from power production and sales | 26,995,169.61 | ||
| Portfolio III: receivables from integrated energy service | 86,607,045.91 | 1,626,964.42 | 1.88 |
| Total | 113,602,215.52 | 1,626,964.42 | 1.43 |
3. Provision for bad debts accrued, reversed or recovered for the current period
| Category | Balance at the end of last year | Amount of changes for the current period | Ending balance | |||
| Accrual | Reverse or recovery | Charge-off or write-off | Others | |||
| Provision for bad debts on an individual basis | 5,558,673.67 | 93,874.60 | 5,464,799.07 | |||
| Provision for bad debts on a credit risk portfolio basis | 1,711,964.42 | 85,000.00 | 1,626,964.42 | |||
| Total | 7,270,638.09 | 85,000.00 | 93,874.60 | 7,091,763.49 | ||
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
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4. Accounts receivable from actual write-off for the current period
| Item | Write-off amount |
| Accounts receivable from actual written-off | 93,874.60 |
5. Accounts receivable and contract assets of the top five ending balances by debtors
| Entity name | Ending balance of accounts receivable | Ending balance of contract assets | Ending balance of accounts receivable and contract assets | Proportion to the total ending balance of accounts receivable and contract assets (%) | Ending balance of provision for bad debts of accounts receivable and provision for contract asset impairment |
| China Machinery Engineering Corporation | 81,821,045.91 | 81,821,045.91 | 68.67 | 1,626,964.42 | |
| Shenzhen Power Supply Bureau Co., Ltd. | 26,981,407.91 | 26,981,407.91 | 22.64 | ||
| Power China Hubei Engineering Co., Ltd. | 4,539,000.00 | 88,000.00 | 4,627,000.00 | 3.88 | |
| Shenzhen Petrochemical Oil Products Bonded Trading Co., Ltd. | 3,474,613.06 | 3,474,613.06 | 2.92 | 3,474,613.06 | |
| China Solibase Engineering Co., Ltd. | 1,137,145.51 | 1,137,145.51 | 0.96 | 1,137,145.51 | |
| Total | 117,953,212.39 | 88,000.00 | 118,041,212.39 | 99.07 | 6,238,722.99 |
(IV) Advances to suppliers
1. Advances to suppliers are listed based on aging
| Aging | Ending balance | Balance at the end of last year | ||
| Book balance | Ratio (%) | Book balance | Ratio (%) | |
| Within 1 year | 26,780,454.52 | 99.67 | 44,506,222.90 | 97.93 |
| 1 to 2 years | 72,700.00 | 0.27 | 514,851.14 | 1.13 |
| 2 to 3 years | 389,626.88 | 0.86 | ||
| Over 3 years | 16,021.07 | 0.06 | 37,586.94 | 0.08 |
| Total | 26,869,175.59 | 100.00 | 45,448,287.86 | 100.00 |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
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2. Prepayments of the top five ending balances by prepayment objects
| Entity name | Book balance | Proportion to the prepayment balance (%) |
| CNOOC Gas & Power Group Co., Ltd. | 15,992,752.12 | 59.52 |
| Shenzhen Gas Group Co., Ltd. | 9,618,506.86 | 35.80 |
| Shenzhen Rici Clinic | 172,600.00 | 0.64 |
| Shenzhen Weinuosi Technology Development Co., Ltd. | 157,800.00 | 0.59 |
| Shenzhen Branch of Ping An Pension Insurance Co., Ltd. | 131,400.00 | 0.49 |
| Total | 26,073,058.98 | 97.04 |
(V) Other receivables
| Item | Ending balance | Balance at the end of last year |
| Interest receivable | ||
| Dividends receivable | ||
| Other receivables | 19,233,117.52 | 18,314,003.84 |
| Total | 19,233,117.52 | 18,314,003.84 |
1. Other receivables
(1) Disclosure based on aging
| Aging | Ending balance | Balance at the end of last year |
| Within 1 year | 1,617,984.30 | 1,058,183.07 |
| 1 to 2 years | 3,356.31 | 36,436.71 |
| 2 to 3 years | 243,391.13 | |
| Over 3 years | 48,002,435.80 | 49,016,380.54 |
| Subtotal | 49,623,776.41 | 50,354,391.45 |
| Less: provision for bad debts | 30,390,658.89 | 32,040,387.61 |
| Total | 19,233,117.52 | 18,314,003.84 |
(2) Disclosure by category
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an | 30,390,658.89 | 61.24 | 30,390,658.89 | 100.00 | |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
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| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| individual basis | |||||
| Provision provision for bad debts on a credit risk portfolio basis | 19,233,117.52 | 38.76 | 19,233,117.52 | ||
| Total | 49,623,776.41 | 100.00 | 30,390,658.89 | 61.24 | 19,233,117.52 |
| Category | Balance at the end of last year | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | 32,328,502.39 | 64.20 | 32,040,387.61 | 99.11 | 288,114.78 |
| Provision provision for bad debts on a credit risk portfolio basis | 18,025,889.06 | 35.80 | 18,025,889.06 | ||
| Total | 50,354,391.45 | 100.00 | 32,040,387.61 | 63.63 | 18,314,003.84 |
① Provision for bad debts on individual provision basis
| Name | Balance at the end of last year | Ending balance | ||||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | Provision ratio (%) | Reasons for provision | |
| Huiyang Kangtai Industrial Company | 14,311,626.70 | 14,311,626.70 | 14,311,626.70 | 14,311,626.70 | 100.00 | Not expected to be recovered |
| Receivables from employee benefit fund dividends and taxes | 9,969,037.63 | 9,969,037.63 | 9,969,037.63 | 9,969,037.63 | 100.00 | Not expected to be recovered |
| Shandong Jinan Power Equipment | 3,560,000.00 | 3,560,000.00 | 3,560,000.00 | 3,560,000.00 | 100.00 | Not expected to be recovere |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
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| Name | Balance at the end of last year | Ending balance | ||||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | Provision ratio (%) | Reasons for provision | |
| Factory | d | |||||
| Receivables from purchase of employee dormitories | 1,736,004.16 | 1,736,004.16 | 1,736,004.16 | 1,736,004.16 | 100.00 | Not expected to be recovered |
| Others | 2,751,833.90 | 2,463,719.12 | 813,990.40 | 813,990.40 | 100.00 | Not expected to be recovered |
| Total | 32,328,502.39 | 32,040,387.61 | 30,390,658.89 | 30,390,658.89 | 100.00 | |
① Provision provision for bad debts on a portfolio basis
| Name | Ending balance | ||
| Other receivables | Provision for bad debts | Provision ratio (%) | |
| Portfolio V: guarantee, deposit and petty cash portfolio | 2,650,577.32 | ||
| Portfolio VII: other receivables and temporary payments | 16,582,540.20 | ||
| Total | 19,233,117.52 | ||
(3) Disclosure by nature of payment
| Nature of payment | Ending book balance | Book balance at the end of last year |
| Guarantee and deposit | 2,869,769.32 | 2,821,122.05 |
| Receivable from employees | 12,415,545.61 | 11,025,579.22 |
| Current accounts with external units | 34,338,461.48 | 36,507,690.18 |
| Subtotal | 49,623,776.41 | 50,354,391.45 |
| Less: provision for bad debts | 30,390,658.89 | 32,040,387.61 |
| Total | 19,233,117.52 | 18,314,003.84 |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 35
(4) Provision provision for bad debts
| Provision for bad debts | The first stage | The second stage | The third phase | Total |
| Expected credit losses over the next 12 months | Expected credit loss over the life of the instruments (no credit impairment has occurred) | Expected credit loss over the life of the instruments (credit impairment has occurred) | ||
| Beginning balance | 32,040,387.61 | 32,040,387.61 | ||
| Beginning balance in the current period | ||||
| --Transfer to the second stage | ||||
| --Transfer to the third stage | ||||
| --Reverse to the second stage | ||||
| --Reverse to the first stage | ||||
| Provision for the current period | 129,806.28 | 129,806.28 | ||
| Reverse for the current period | 1,235,154.68 | 1,235,154.68 | ||
| Charge-off for the current period | 544,380.32 | 544,380.32 | ||
| Write-off for the current period | ||||
| Other changes | ||||
| Ending balance | 30,390,658.89 | 30,390,658.89 |
(5) Provision for bad debts made, reversed or recovered for the current period
| Category | Balance at the end of last year | Amount of changes for the current period | Ending balance | |||
| Accrual | Reverse or recovery | Charge-off or write-off | Others | |||
| Individual provision | 32,040,387.61 | 129,806.28 | 1,235,154.68 | 544,380.32 | 30,390,658.89 | |
| Total | 32,040,387.61 | 129,806.28 | 1,235,154.68 | 544,380.32 | 30,390,658.89 | |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 36
The amount of provision for bad debts reversed or recovered for the current period, which isimportant
| Entity name | Reversed or recovered amount | Reason for the reverse or recovery | Method of recovery | The basis for determining the original provision for bad debts and its rationality |
| Shenzhen OCT Co., Ltd. Asset Management Branch | 1,172,781.26 | It is likely to be recovered | Recovered on surrender of lease | Long aging |
| Total | 1,172,781.26 |
(6) Other receivables of the top five ending balances by debtors
| Entity name | Nature of payment | Book balance | Aging | Proportion to the total ending balance of other receivables (%) | Ending balance of provision for bad debts |
| Huidong Xiefu Port Comprehensive Development Co., Ltd. | Current accounts | 15,532,630.74 | Within 1 year and 1-3 years | 31.30 | |
| Huiyang Kangtai Industrial Company | Current accounts | 14,311,626.70 | Over 3 years | 28.84 | 14,311,626.70 |
| Shandong Jinan Power Equipment Factory Co., Ltd. | Current accounts | 3,560,000.00 | Over 3 years | 7.17 | 3,560,000.00 |
| Shenzhen OCT Co., Ltd. Asset Management Branch | Deposit | 1,460,919.00 | Over 3 years | 2.94 | |
| Lai Weicheng | Current accounts | 1,408,866.89 | Over 3 years | 2.85 | 1,408,866.89 |
| Total | 36,274,043.33 | 73.10 | 19,280,493.59 |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
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(VI) Inventories
1. Inventories classification
| Item | Ending balance | Balance at the end of last year | ||||
| Book balance | Provision for inventory depreciation or provision for impairment of contract performance costs | Book value | Book balance | Provision for inventory depreciation or provision for impairment of contract performance costs | Book value | |
| Fuel and spare parts | 144,943,485.98 | 59,223,967.83 | 85,719,518.15 | 144,000,440.38 | 59,079,222.05 | 84,921,218.33 |
| Auxiliary materials and low-value consumables, etc. | 344,882.11 | 344,882.11 | 358,080.02 | 358,080.02 | ||
| Others | 93,850.90 | 93,850.90 | ||||
| Total | 145,382,218.99 | 59,223,967.83 | 86,158,251.16 | 144,358,520.40 | 59,079,222.05 | 85,279,298.35 |
2. Provision for inventory depreciation and provision for impairment of contractperformance costs
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance | ||
| Accrual | Others | Reverse or charge-off | Others | |||
| Fuel and spare parts | 59,079,222.05 | 191,133.50 | 46,387.72 | 59,223,967.83 | ||
| Total | 59,079,222.05 | 191,133.50 | 46,387.72 | 59,223,967.83 | ||
(VII) Contract assets
1. Contract assets
| Item | Ending balance | Balance at the end of last year | ||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |
| Project quality guarantee | 88,000.00 | 88,000.00 | 217,009.58 | 217,009.58 | ||
| Total | 88,000.00 | 88,000.00 | 217,009.58 | 217,009.58 | ||
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Notes to the Financial statements Page 38
2. Disclosure by the method of provision for bad debts
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | |||||
| Provision provision for bad debts on a credit risk portfolio basis | 88,000.00 | 100.00 | 88,000.00 | ||
| Total | 88,000.00 | 100.00 | 88,000.00 | ||
| Category | Balance at the end of last year | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | |||||
| Provision provision for bad debts on a credit risk portfolio basis | 217,009.58 | 100.00 | 217,009.58 | ||
| Total | 217,009.58 | 100.00 | 217,009.58 | ||
(VIII) Other current assets
| Item | Ending balance | Balance at the end of last year |
| Large-amount negotiable certificate of deposit and accrued interest | 225,278,591.79 | 180,496,849.31 |
| Prepaid income tax | 6,583,089.98 | 6,583,089.98 |
| Amount of input value-added tax to be deducted | 996,267.20 | 1,103,481.37 |
| Others | 8,019.66 | 65,419.78 |
| Total | 232,865,968.63 | 188,248,840.44 |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 39
(IX) Long-term equity investments
| Investees | Balance at the end of last year | Ending balance of provision for impairment | Increase and decrease in the current period | Ending balance | Ending balance of provision for impairment | |||||||
| Additional investment | Reduced investment | Investment profit or loss recognized under the equity method | Adjustments to the other comprehensive income | Other changes in equity | Declaration of cash dividend or profits | Provision for impairment | Others | |||||
| 1. Associates | ||||||||||||
| Huidong Xiefu Port Comprehensive Development Co., Ltd. (hereinafter referred to as "Huidong Xiefu") | 4,414,021.80 | 753,311.50 | 5,167,333.30 | |||||||||
| Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. (hereinafter referred to as "Liaoyuan | 79,082,076.44 | 6,966,316.30 | 1,214,550.00 | 84,833,842.74 | ||||||||
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| Investees | Balance at the end of last year | Ending balance of provision for impairment | Increase and decrease in the current period | Ending balance | Ending balance of provision for impairment | |||||||
| Additional investment | Reduced investment | Investment profit or loss recognized under the equity method | Adjustments to the other comprehensive income | Other changes in equity | Declaration of cash dividend or profits | Provision for impairment | Others | |||||
| Environmental Protection") | ||||||||||||
| Total | 83,496,098.24 | 7,719,627.80 | 1,214,550.00 | 90,001,176.04 | ||||||||
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 41
(X) Other investments in equity instruments
1. Other investments in equity instruments
| Item | Ending balance in the current year | Balance at the end of last year | ||||
| Original book value | Fair value changes | Ending balance | Original book value | Fair value changes | Ending balance | |
| Sunpower Technology (Jiangsu) Co., Ltd. | 140,000,000.00 | 140,000,000.00 | 140,000,000.00 | 140,000,000.00 | ||
| Shenzhen Yuanzhi Ruixin New Generation Information Technology Private Equity Investments Fund Partnership (Limited Partnership) | 100,000,000.00 | 100,000,000.00 | 100,000,000.00 | 100,000,000.00 | ||
| Jiangxi Nuclear Power Co., Ltd. | 60,615,000.00 | 60,615,000.00 | 60,615,000.00 | 60,615,000.00 | ||
| Shenzhen Petrochemical Oil Products Bonded Trading Co., Ltd. | 2,500,000.00 | -2,500,000.00 | 2,500,000.00 | -2,500,000.00 | ||
| Total | 303,115,000.00 | -2,500,000.00 | 300,615,000.00 | 303,115,000.00 | -2,500,000.00 | 300,615,000.00 |
2. Investment in non-trading equity instruments
| Item | Dividend income recognized in the current period | Accumulated gains | Accumulated losses | The amount of other comprehensive income transferred to retained earnings | Reasons for measuring at fair value and whose changes are recognized in other comprehensive income | Reasons for transferring other comprehensive income to retained earnings |
| Sunpower Technology (Jiangsu) Co., Ltd. | 8,400,000.00 | Plan to hold for the long term | ||||
| Shenzhen Yuanzhi Ruixin New Generation Information Technology Private Equity Investments Fund Partnership (Limited Partnership) | 340,206.13 | Plan to hold for the long term | ||||
| Jiangxi Nuclear Power Co., Ltd. | Plan to hold for the long term | |||||
| Shenzhen Petrochemical Oil Products Bonded | 2,500,000.00 | Plan to hold for the long term |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 42
| Item | Dividend income recognized in the current period | Accumulated gains | Accumulated losses | The amount of other comprehensive income transferred to retained earnings | Reasons for measuring at fair value and whose changes are recognized in other comprehensive income | Reasons for transferring other comprehensive income to retained earnings |
| Trading Co., Ltd. | ||||||
| Total | 8,740,206.13 | 2,500,000.00 |
(XI) Investment properties
1. Investment properties measured using cost model
| Item | Houses and buildings | Total |
| 1. Original book value | ||
| (1) Balance at the end of last year | 9,708,014.96 | 9,708,014.96 |
| (2) Increased amount in the current period | ||
| (3) Reduced amount in the current period | ||
| (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 | 7,874,670.76 | 7,874,670.76 |
| (2) Increased amount in the current period | 168,777.60 | 168,777.60 |
| (3) Reduced amount in the current period | ||
| (4) Ending balance | 8,043,448.36 | 8,043,448.36 |
| 3. Provision for impairment | ||
| (1) Balance at the end of last year | ||
| (2) Increased amount in the current period | ||
| (3) Reduced amount in the current period | ||
| (4) Ending balance | ||
| 4. Book value | ||
| (1) Ending book value | 1,664,566.60 | 1,664,566.60 |
| (2) Book value at the end of last year | 1,833,344.20 | 1,833,344.20 |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 43
(XII) Fixed assets
1. Fixed assets and disposal of fixed assets
| Item | Ending balance | Balance at the end of last year |
| Fixed assets | 385,390,614.45 | 591,290,204.31 |
| Disposal of fixed assets(note） | 186,092,119.90 | |
| Total | 571,482,734.35 | 591,290,204.31 |
Note: On November 6, 2023, Shenzhen Nanshan Power Zhongshan Company received the Letteron Matters Related to the Shutdown of Units of Shenzhen Nanshan Power (Zhongshan) Power Co.,Ltd. Nanlang Power Plant (YNDLH [2023] No. 672) from Energy Bureau of Guangdong Province,according to which, the Energy Bureau of Guangdong Province agreed on the shutdown of two180MW gas-fired cogeneration units of Zhongshan Nanlang Power Plant. The relevant unitequipment and other assets are planned to be externally disposed of and have been listed onShenzhen United Property and Equity Exchange in 2024; In addition, according to the latestindustrial planning of Zhongshan Cuiheng New District, Cuiheng New District ManagementCommittee paid for the acquisition and storage of the use rights of three parcels of state-ownedland of Shenzhen Nanshan Power Zhongshan Company located in Hengmen Industrial Zone,Nanlang Street, Cuiheng New District, Zhongshan City (hereinafter referred to as "the ProposedAcquisition and Storage Land"). On December 12, 2023, Shenzhen Nanshan Power ZhongshanCompany and Cuiheng New District Management Committee formally signed the State-ownedLand Use Right Recovery Agreement and Relocation Compensation Agreement. Assets related tothis matter, such as buildings, unit equipment and cogeneration projects under construction inprogress were transferred to the fixed assets to be disposed.
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 44
2. Fixed assets
| Item | Houses and buildings | Machinery equipment | Means of transport | Electronic equipment and other equipment | Total |
| 1. Original book value | |||||
| (1) Balance at the end of last year | 424,154,183.71 | 2,725,092,344.93 | 8,138,535.02 | 44,622,476.80 | 3,202,007,540.46 |
| (2) Increased amount in the current period | 9,310,486.55 | 619,173.18 | 9,929,659.73 | ||
| -Purchase | 478,923.62 | 478,923.62 | |||
| -Transfer construction in progress | 8,575,561.48 | 140,249.56 | 8,715,811.04 | ||
| -Others | 734,925.07 | 734,925.07 | |||
| (3) Reduced amount in the current period | 129,266,768.52 | 1,091,448,053.55 | 1,832,964.37 | 777,795.06 | 1,223,325,581.50 |
| -Disposal or scrapping | 129,266,768.52 | 1,091,448,053.55 | 1,698,464.37 | 131,474.77 | 1,222,544,761.21 |
| ---Others | 134,500.00 | 646,320.29 | 780,820.29 | ||
| (4) Ending balance | 294,887,415.19 | 1,642,954,777.93 | 6,305,570.65 | 44,463,854.92 | 1,988,611,618.69 |
| 2. Accumulated depreciation | |||||
| (1) Balance at the end of last year | 294,778,055.90 | 1,912,442,654.22 | 5,011,870.15 | 33,757,207.10 | 2,245,989,787.37 |
| (2) Increased amount in the current period | 9,243,346.13 | 17,124,749.92 | 1,130,492.64 | 2,542,508.49 | 30,041,097.18 |
| -Provision | 9,243,346.13 | 16,463,317.36 | 1,130,492.64 | 2,491,389.64 | 29,328,545.77 |
| -Others | 661,432.56 | 51,118.85 | 712,551.41 | ||
| (3) Reduced amount in the current period | 99,818,329.32 | 689,937,238.61 | 1,426,368.64 | 683,071.08 | 791,865,007.65 |
| -Disposal or scrapping | 99,818,329.32 | 689,937,238.61 | 1,305,318.64 | 91,569.67 | 791,152,456.24 |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 45
| Item | Houses and buildings | Machinery equipment | Means of transport | Electronic equipment and other equipment | Total |
| -Others | 121,050.00 | 591,501.41 | 712,551.41 | ||
| (4) Ending balance | 204,203,072.71 | 1,239,630,165.53 | 4,715,994.15 | 35,616,644.51 | 1,484,165,876.90 |
| 3. Provision for impairment | |||||
| (1) Balance at the end of last year | 22,573,968.96 | 341,888,879.56 | 53,176.48 | 211,523.78 | 364,727,548.78 |
| (2) Increased amount in the current period | 33,800.00 | 33,800.00 | |||
| -Others | 33,800.00 | 33,800.00 | |||
| (3) Reduced amount in the current period | 4,721,921.12 | 240,950,500.32 | 33,800.00 | 245,706,221.44 | |
| -Disposal or scrapping | 4,721,921.12 | 240,950,500.32 | 245,672,421.44 | ||
| ---Others | 33,800.00 | 33,800.00 | |||
| (4) Ending balance | 17,852,047.84 | 100,972,179.24 | 53,176.48 | 177,723.78 | 119,055,127.34 |
| 4. Book value | |||||
| (1) Ending book value | 72,832,294.64 | 302,352,433.16 | 1,536,400.02 | 8,669,486.63 | 385,390,614.45 |
| (2) Book value at the end of last year | 106,802,158.85 | 470,760,811.15 | 3,073,488.39 | 10,653,745.92 | 591,290,204.31 |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 46
3. Fixed assets without the certificate of title
| Item | Book value | Reasons for failure to acquire the certificate of title |
| Circulating water pump workshop | 719,232.91 | Formalities not completed |
| Cooling tower | 673,259.25 | Formalities not completed |
| Complex building | 443,246.19 | Formalities not completed |
| Cafeteria of complex building | 208,735.47 | Formalities not completed |
| Chemical water treatment workshop | 232,960.00 | Formalities not completed |
| Mail room at the main entrance | 47,264.13 | Formalities not completed |
| Total | 2,324,697.95 |
4. Disposal of fixed assets
| Item | Ending balance | Balance at the end of last year |
| Houses and buildings | 24,723,346.08 | |
| Machinery equipment | 160,560,314.62 | |
| Means of transport | 16,103.45 | |
| Construction in progress - cogeneration projects | 792,355.75 | |
| Total | 186,092,119.90 |
For details, please see Note V (XII) 1. Fixed assets and disposal of fixed assets of the notes to thefinancial statements.(XIII) Construction in progress
1. Construction in progress
| Item | Ending balance | Balance at the end of last year |
| Construction in progress | 3,448,855.10 | 4,861,062.16 |
| Total | 3,448,855.10 | 4,861,062.16 |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 47
2. Construction in progress
| Item | Ending balance | Balance at the end of last year | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Combined heat and power project(note） | 60,307,712.44 | 59,515,356.69 | 792,355.75 | |||
| Oil to gas project | 9,441,286.39 | 9,441,286.39 | 9,441,286.39 | 9,441,286.39 | ||
| Technical transformation project | 4,080,877.62 | 1,605,000.00 | 2,475,877.62 | 5,673,706.41 | 1,605,000.00 | 4,068,706.41 |
| Others | 972,977.48 | 972,977.48 | ||||
| Total | 14,495,141.49 | 11,046,286.39 | 3,448,855.10 | 75,422,705.24 | 70,561,643.08 | 4,861,062.16 |
Note: for the cogeneration projects to be transferred to the fixed assets to be disposed due to plannedland acquisition and storage, please see Note V (XII) 1. Fixed assets and disposal of fixed assets of thenotes to the financial statements for details.
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 48
3. Changes in the current period of important construction in progress
| Project name | Budget amount | Balance at the end of last year | Increased amount in the current period | Amount transferred to fixed assets in the current period | Other decreases in the current period (note) | Ending balance | Proportion of cumulative project investment to budget (%) | Project progress (%) | Accumulated amount of interest capitalization | Including: amount of interest capitalization in the current period | Interest capitalization rate in the current period (%) | Sources of funds |
| Combined heat and power project | 60,000,000.00 | 60,307,712.44 | 60,307,712.44 | 100.51 | 100.00 | 6,476,185.46 | Self-financing and borrowing | |||||
| Oil to gas project | 9,441,286.39 | 9,441,286.39 | Self-financed | |||||||||
| Total | 60,000,000.00 | 69,748,998.83 | 60,307,712.44 | 9,441,286.39 | 6,476,185.46 |
Note: For details, please see Note V (XII) 1. Fixed assets and disposal of fixed assets to the notes to the financial statements
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 49
(XIV) Right-of-use assets
1. Right-of-use assets
| Item | Houses and buildings | Total |
| I. Original book value | ||
| 1. Beginning balance | 16,322,014.37 | 16,322,014.37 |
| 2. Increased amount in the current period | ||
| 3. Decreased amount in the current period | ||
| 4. Ending balance | 16,322,014.37 | 16,322,014.37 |
| II. Accumulated depreciation | ||
| 1. Beginning balance | 8,614,396.47 | 8,614,396.47 |
| 2. Increased amount in the current period | 5,440,671.48 | 5,440,671.48 |
| (1) Provision | 5,440,671.48 | 5,440,671.48 |
| 3. Decreased amount in the current period | ||
| 4. Ending balance | 14,055,067.95 | 14,055,067.95 |
| III. Provision for impairment | ||
| IV. Book value | ||
| 1. Ending book value | 2,266,946.42 | 2,266,946.42 |
| 2. Beginning book value | 7,707,617.90 | 7,707,617.90 |
Note: right-of-use assets for the current period refer to the 16th and 17th floors of the HantangBuilding Property for office under the Company's operating leases.
(XV) Intangible assets
1. Intangible assets
| Item | Land use right | Patent | Software | Total |
| 1. Original book value | ||||
| (1) Balance at the end of last year | 60,813,994.76 | 138,625.07 | 3,782,983.49 | 64,735,603.32 |
| (2) Increased amount in the current period | 75,575.23 | 75,575.23 | ||
| -Purchase | 75,575.23 | 75,575.23 | ||
| (3) Reduced amount in the current period | ||||
| -Others | ||||
| (4) Ending balance | 60,813,994.76 | 138,625.07 | 3,858,558.72 | 64,811,178.55 |
| 2. Accumulated amortization | ||||
| (1) Balance at the end of last year | 41,265,885.15 | 31,817.30 | 3,638,545.75 | 44,936,248.20 |
| (2) Increased amount in the current period | 519,956.44 | 17,347.80 | 51,997.08 | 589,301.32 |
| -Provision | 519,956.44 | 17,347.80 | 51,997.08 | 589,301.32 |
| (3) Reduced amount in the current period |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 50
| Item | Land use right | Patent | Software | Total |
| —Disposal | ||||
| (4) Ending balance | 41,785,841.59 | 49,165.10 | 3,690,542.83 | 45,525,549.52 |
| 3. Provision for impairment | ||||
| (1) Balance at the end of last year | ||||
| (2) Increased amount in the current period | ||||
| -Provision | ||||
| (3) Reduced amount in the current period | ||||
| —Disposal | ||||
| (4) Ending balance | ||||
| 4. Book value | ||||
| (1) Ending book value | 19,028,153.17 | 89,459.97 | 168,015.89 | 19,285,629.03 |
| (2) Book value at the end of last year | 19,548,109.61 | 106,807.77 | 144,437.74 | 19,799,355.12 |
2. Land use right without the certificate of title
| Item | Book value | Reasons for failure to acquire the certificate of title |
| Land use rights for docks and pipeline corridors | 372,219.18 | Formalities not completed |
| Total | 372,219.18 |
(XVI) Long-term deferred expenses
| Item | Balance at the end of last year | Increased amount in the current period | Amortization amount in the current period | Other reductions | Ending balance |
| Renovation costs | 1,219,129.18 | 497,331.12 | 721,798.06 | ||
| Major repair expenses | 3,588,718.72 | 418,683.85 | 3,170,034.87 | ||
| Total | 1,219,129.18 | 3,588,718.72 | 916,014.97 | 3,891,832.93 |
(XVII) Deferred tax assets and deferred tax liabilities
1. Deferred tax assets not offset
| Item | Ending balance | Balance at the end of last year | ||
| Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 51
| Item | Ending balance | Balance at the end of last year | ||
| Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | |
| Provision for bad debts | 3,649,109.93 | 547,366.49 | 3,649,109.93 | 547,366.49 |
| Fair value changes of other investments in equity instruments | 2,500,000.00 | 625,000.00 | 2,500,000.00 | 625,000.00 |
| Total | 6,149,109.93 | 1,172,366.49 | 6,149,109.93 | 1,172,366.49 |
2. Details of unrecognized deferred tax assets
| Item | Ending balance | Balance at the end of last year |
| Deductible temporary differences | 547,773,352.17 | 545,598,991.76 |
| Deductible losses | 542,749,124.79 | 560,445,722.73 |
| Total | 1,090,522,476.96 | 1,106,044,714.49 |
3. The deductible losses for which deferred tax assets have not been recognized will expire inthe following years
| Year | Ending balance | Balance at the end of last year |
| 2023 | 37,872,366.36 | |
| 2024 | 5,350,767.06 | 5,350,767.06 |
| 2025 | 3,443,492.77 | 3,443,492.77 |
| 2026 | 174,438,579.72 | 156,697,644.85 |
| 2027 | 187,111,062.55 | 180,144,071.23 |
| 2028 | 62,579,931.14 | |
| 2029 | 6,019,123.66 | |
| 2030 | 26,803,142.56 | 66,557,231.23 |
| 2031 | 15,911,576.84 | 34,136,713.56 |
| 2032 | 50,074,067.52 | 70,224,312.01 |
| 2033 | 17,036,504.63 | |
| Total | 542,749,124.79 | 560,445,722.73 |
(XVIII) Other non-current assets
| Item | Ending balance | Balance at the end of last year |
| Land acquisition, storage, production and business suspension, employee | 36,157,735.24 |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 52
| Item | Ending balance | Balance at the end of last year |
| compensation and relocation expenses, etc. (Note) | ||
| Project quality guarantee | 5,371,398.18 | |
| Total | 36,157,735.24 | 5,371,398.18 |
Note: according to the latest industrial plan of Zhongshan Cuiheng New District, Cuiheng NewDistrict Management Committee has acquired three state-owned land use rights of ShenzhenNanshan Power Zhongshan Company located in Hengmen Industrial Zone, Nanlang Street,Cuiheng New District, Zhongshan (hereinafter referred to as "the Proposed Acquisition andStorage Land") with compensation. On December 15, 2023, Shenzhen Nanshan Power ZhongshanCompany and Cuiheng New District Management Committee formally signed the State-ownedLand Use Right Recovery Agreement and Relocation Compensation Agreement. On December 18,2023, Shenzhen Nanshan Power Zhongshan Company received the first installment of RMB104,000,000 in the first phase of compensation, which was recorded in other non-current liabilities.The expenses incurred by the Company in fulfilling the land acquisition and storage, such as theloss of demolition of houses and other appurtenances, relocation expenses, employeecompensation paid during the suspension of production and business operations were recognizedin other non-current assets.
(XIX) Assets with restricted ownership or use rights
| Item | Ending balance | Balance at the end of last year | ||||||
| Book balance | Book value | Restricted type | Restrictions | Book balance | Book value | Restricted type | Restrictions | |
| Monetary funds | 5,453,862.93 | 5,453,862.93 | Guarantee | Freeze | 27,474,594.34 | 27,474,594.34 | Guarantee | Freeze |
| Total | 5,453,862.93 | 5,453,862.93 | 27,474,594.34 | 27,474,594.34 | ||||
(XX) Short-term borrowings
Short-term borrowings classification
| Item | Ending balance | Balance at the end of last year |
| Credit loan | 270,933,506.37 | 878,150,962.14 |
| Pledge loan | 70,000,000.00 | |
| Short term loan interest payable | 304,380.35 | 1,806,895.30 |
| Total | 341,237,886.72 | 879,957,857.44 |
Note: the Company used its own patent rights pledge a loan of RMB 70 million from ShanghaiPudong Development Bank Shenzhen Branch.
(XXI) Notes payable
| Type | Ending balance | Balance at the end of last year |
| Bank acceptance bill | 137,298,902.17 |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 53
| Type | Ending balance | Balance at the end of last year |
| Total | 137,298,902.17 |
(XXII) Accounts payable
1. Accounts payable
| Item | Ending balance | Balance at the end of last year |
| Labor and service payments | 3,435,338.05 | 3,997,800.00 |
| Electricity bill | 896,652.87 | 937,613.72 |
| Payment for materials | 10,175.58 | 292,422.50 |
| Total | 4,342,166.50 | 5,227,836.22 |
At the end of the reporting period, the Company had no important accounts payable aged over oneyear.
2. Top five accounts payable
| Entity name | Book balance | Proportion to the accounts payable balance (%) |
| Shenyang LES Power Service Co., Ltd. | 1,558,834.05 | 35.90 |
| Nanjing Pengpai Power Engineering Technology Co., Ltd. | 1,265,040.00 | 29.13 |
| Shenzhen Power Supply Bureau Co., Ltd. | 896,652.87 | 20.65 |
| Nanjing Fire Fighting Equipment Co., Ltd. | 316,550.00 | 7.29 |
| Shenzhen Power Transmission and Transformation Engineering Co., Ltd. | 128,250.00 | 2.96 |
| Total | 4,165,326.92 | 95.93 |
(XXIII) Employee compensation payable
1. Employee compensation payable
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| Short-term compensation | 29,296,815.07 | 78,753,525.70 | 94,050,214.20 | 14,000,126.57 |
| Post-employment benefits- defined contribution plans | 17,126,112.08 | 17,126,112.08 | ||
| Dismissal benefits (note) | 32,238,856.00 | 32,238,856.00 | ||
| Other benefits due within one year |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 54
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| Total | 29,296,815.07 | 128,118,493.78 | 111,176,326.28 | 46,238,982.57 |
Note: for the employee compensation matters relating to land acquisition and storage of ShenzhenNanshan Power Zhongshan Company, please refer to the Note V (XVIII).
2. Short-term compensation
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| (1) Salaries, bonuses, allowances and subsidies | 28,806,319.36 | 51,335,303.97 | 66,236,784.86 | 13,904,838.47 |
| (2) Employee welfare fees | 107,277.20 | 9,551,427.64 | 9,658,704.84 | |
| (3) Social insurance premiums | 5,862,608.52 | 5,862,608.52 | ||
| Including: medical insurance premiums | 5,180,471.81 | 5,180,471.81 | ||
| Work injury insurance premium | 324,480.70 | 324,480.70 | ||
| Maternity insurance premium | 357,656.01 | 357,656.01 | ||
| (4) Housing provident fund | 10,248,597.80 | 10,248,597.80 | ||
| (5) Trade union funds and employee education expenses | 383,218.51 | 1,755,587.77 | 2,043,518.18 | 95,288.10 |
| (6) Short-term paid absence from work | ||||
| (7) Short-term profit sharing plan | ||||
| (8) Others | ||||
| Total | 29,296,815.07 | 78,753,525.70 | 94,050,214.20 | 14,000,126.57 |
3. Defined contribution plans list
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| Basic endowment insurance | 11,538,360.11 | 11,538,360.11 | ||
| Unemployment insurance premiums | 140,457.97 | 140,457.97 |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 55
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| Enterprise annuity payment | 5,447,294.00 | 5,447,294.00 | ||
| Total | 17,126,112.08 | 17,126,112.08 |
(XXIV) Taxes payable
| Tax items | Ending balance | Balance at the end of last year |
| Value-added tax | 2,282,514.44 | 2,068,236.33 |
| Personal income tax | 620,879.50 | 1,825,992.00 |
| Stamp duty | 160,105.10 | 170,883.69 |
| Urban maintenance and construction tax | 15,063.61 | 2,464.98 |
| Education surcharge | 6,404.48 | 630.08 |
| Local education surcharge | 4,346.16 | 420.06 |
| Property tax | 996,166.86 | |
| Other taxes | 17.18 | 42,872.73 |
| Total | 3,089,330.47 | 5,107,666.73 |
(XXV) Other payables
| Item | Ending balance | Balance at the end of last year |
| Interest payable | ||
| Dividends payable | ||
| Other payables | 13,973,447.42 | 22,997,466.80 |
| Total | 13,973,447.42 | 22,997,466.80 |
1. Other payables
(1) Presented according to nature of payment
| Item | Ending balance | Balance at the end of last year |
| Guarantee | 8,993,154.68 | 6,973,652.54 |
| Labor and service fees | 1,522,715.43 | 7,525,391.28 |
| Others | 3,457,577.31 | 8,498,422.98 |
| Total | 13,973,447.42 | 22,997,466.80 |
(2) Top five other payables
| Entity name | Book balance | Proportion to the other accounts payable balance (%) |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 56
| Entity name | Book balance | Proportion to the other accounts payable balance (%) |
| Shenzhen Nangang Power Engineering Co., Ltd. | 4,760,000.00 | 34.06 |
| Zike Co., Ltd. | 1,872,500.00 | 13.40 |
| Shanghai Power Equipment Research Institute Co., Ltd. | 1,773,515.02 | 12.69 |
| Zhongshan Nanlang Construction and Development Company | 860,190.12 | 6.16 |
| Shenzhen Trony New Energy Technology Co., Ltd. | 458,593.39 | 3.28 |
| Total | 9,724,798.53 | 69.59 |
(XXVI) Non-current liabilities maturing within one year
| Item | Ending balance | Balance at the end of last year |
| Long-term borrowings due within one year | 1,399,170.93 | |
| Lease liabilities due within one year | 2,556,609.50 | 6,279,115.44 |
| Less: unrecognized financing expenses | 29,453.98 | 264,995.49 |
| Total | 3,926,326.45 | 6,014,119.95 |
(XXVII) Other current liabilities
| Item | Ending balance | Balance at the end of last year |
| Value-added tax pending charge-off | 21,600.00 | |
| Total | 21,600.00 |
(XXVIII) Long-term borrowings
| Item | Ending balance | Balance at the end of last year |
| Credit loan | 58,829,426.30 | 28,019,758.68 |
| Total | 58,829,426.30 | 28,019,758.68 |
(XXIX) Lease liabilities
1. Lease liabilities details
| Item | Ending balance | Balance at the end of last year |
| Lease liabilities | 2,291,614.01 | |
| Less: unrecognized financing | 29,453.98 |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 57
| Item | Ending balance | Balance at the end of last year |
| expenses | ||
| Total | 2,262,160.03 |
2. Lease liabilities maturity analysis
| Item | Ending balance | Balance at the end of last year |
| 1-2 years | 2,262,160.03 | |
| Total | 2,262,160.03 |
(XXX) Estimated liabilities
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance | Causes |
| Others | 15,000,000.00 | 15,000,000.00 | |||
| Total | 15,000,000.00 | 15,000,000.00 |
Note: on November 29, 2013, Shenzhen Xiefu and Jiahua Construction Products (Shenzhen) Co.,Ltd. ("Jiahua Construction") signed a supplementary agreement to the equity transfer agreement inrespect of the historical issues in relation to the vesting and division of interests in Yapojiao Wharfbetween Shenzhen Xiefu, Huidong Xiefu and the Huidong Renshan Town Government and itssubordinate Renshan Group. In order to solve the historical issues, Shenzhen Xiefu depositedRMB 12,500,000.00 into the escrow account as guarantee. In addition, Shenzhen Xiefu pledged its20% equity interest in Huidong Xiefu to Jiahua Construction for a period of two years and theamount of the pledge secured claim was not more than RMB 15,000,000.00. The Companyexpected a loss of RMB 27,500,000.00 in relation to this matter. The balance at the end of 2019was RMB 26,646,056.28.On November 12, 2020, Huidong Xiefu and other relevant parties reached a preliminarysettlement agreement on the land dispute matter in estimated liabilities. Shenzhen Xiefuaccordingly reversed the estimated liabilities by RMB 6,584,816.78. In 2020, Shenzhen Xiefuborne the lawyer and other expenses of RMB 137,731.22 for this matter according to the agreedratio, and the estimated liabilities decreased by a total of RMB 6,722,548.00 in 2020. The balanceof RMB 19,923,508.28 is the repayment obligation that is likely to occur before the above mattersare completed.On November 12, 2020, Huizhou Commercial Construction and Development Corporation andHuidong Xiefu Port Comprehensive Development Co., Ltd. signed the Debt Transfer Agreementand the execution and settlement record of the Huidong County People's Court. The historicalissues left over from the ownership and division of the rights and interests of Yapojiao Wharf werepartially resolved. On January 20, 2021, Shenzhen Xiefu received a refund of RMB 5,000,000.00from the co-managed account. Shenzhen Xiefu accordingly reversed the estimated liabilities byRMB 4,573,508.28. In 2021, Shenzhen Xiefu borne the lawyer and other expenses of RMB350,000 for this matter according to the agreed ratio, and the estimated liabilities decreased by atotal of RMB 4,923,508.28 in 2021. The balance of RMB 15,000,000.00 is the repaymentobligation that is likely to occur before the above matters are completed.
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(XXXI) Deferred income
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance | Causes |
| Government subsidies(Note) | 82,145,596.60 | 3,690,000.00 | 17,966,248.53 | 67,869,348.07 | |
| Total | 82,145,596.60 | 3,690,000.00 | 17,966,248.53 | 67,869,348.07 |
Note: for the government subsidies recognized in the current profit or loss, please refer to NoteVIII (I) of the notes to the financial statements.(XXXII) Other non-current liabilities
| Item | Ending balance | Balance at the end of last year |
| Progress payment for land acquisition and storage(Note) | 104,000,000.00 | |
| Interests of other partners in the partnership | 45,112.54 | 47,511.72 |
| Total | 104.045,112.54 | 47,511.72 |
Note: for the transfer matters relating to the land acquisition and storage and the shutdown andretirement of unit assets of Shenzhen Nanshan Power Zhongshan Company, please refer to theNote V (XVIII).
(XXXIII) Share capital
| Item | Balance at the end of last year | Increase (+) and decrease (-) in the current period | Ending balance | ||||
| Issuance of new shares | Bonus shares | Provident fund conversion | Others | Subtotal | |||
| Total shares | 602,762,596.00 | 602,762,596.00 | |||||
(XXXIV) Capital reserves
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| Capital premium (equity premium) | 233,035,439.62 | 233,035,439.62 | ||
| Other capital reserve | 129,735,482.48 | 129,735,482.48 | ||
| Total | 362,770,922.10 | 362,770,922.10 |
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(XXXV) Other comprehensive income
| Item | Balance at the end of last year | Beginning balance | The current period amount | Ending balance | |||||
| Amount before income tax for the current period | Less: recognized in other comprehensive income in the previous period and transferred to profit and loss in the current period | Less: recognized in other comprehensive income in the previous period and transferred to retained earnings in the current period | Less: income tax expenses | Attributable to parent company after tax | Attributable to minority shareholders after tax | ||||
| 1. Other comprehensive income that cannot be reclassified into profit or loss | |||||||||
| Including: remeasure changes in benefit plans | |||||||||
| Other comprehensive income that cannot be transferred to profit or loss under the equity method | |||||||||
| Fair value changes of other | -2,500,000.00 | -2,500,000.00 | -2,500,000.00 | ||||||
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| Item | Balance at the end of last year | Beginning balance | The current period amount | Ending balance | |||||
| Amount before income tax for the current period | Less: recognized in other comprehensive income in the previous period and transferred to profit and loss in the current period | Less: recognized in other comprehensive income in the previous period and transferred to retained earnings in the current period | Less: income tax expenses | Attributable to parent company after tax | Attributable to minority shareholders after tax | ||||
| investments in equity instruments | |||||||||
| Total other comprehensive income | -2,500,000.00 | -2,500,000.00 | -2,500,000.00 | ||||||
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(XXXVI) Special reserves
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| Safety production costs | 13,270,901.66 | 13,270,901.66 | ||
| Total | 13,270,901.66 | 13,270,901.66 |
Note: in accordance with the Management Measures for the Withdrawal and Use of EnterpriseSafety Production Costs (CZ [2022] No. 136) (released on December 12, 2022), the Companywithdrew safety production costs and included them in the current profit or loss, and transferredthem to special reserve at the same time.
(XXXVII) Surplus reserves
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| Statutory surplus reserve | 310,158,957.87 | 310,158,957.87 | ||
| Discretionary surplus reserve | 22,749,439.73 | 22,749,439.73 | ||
| Total | 332,908,397.60 | 332,908,397.60 |
(XXXVIII) Undistributed profits
| Item | The current period amount | Amount in previous period |
| Undistributed profits at the end of last year before adjustments | 159,187,979.14 | 319,351,219.81 |
| Adjustments to the total amount of the undistributed profits at the beginning of the year (increase +, decrease -) | ||
| Undistributed profits at the beginning of the year after adjustments | 159,187,979.14 | 319,351,219.81 |
| Plus: net profit attributable to owners of parent company for the current period | 4,158,797.10 | -160,163,240.67 |
| Less: withdrawal of statutory surplus reserve | ||
| Dividends payable on ordinary shares | ||
| Ending undistributed profits | 163,346,776.24 | 159,187,979.14 |
(XXXIX) Operating revenue and operating costs
| Item | The current period amount | Amount in previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 588,370,569.20 | 581,180,842.37 | 692,615,690.26 | 804,420,389.38 |
| Other business | 1,409,621.51 | 261,701.61 | 1,611,967.02 | 258,934.10 |
| Total | 589,780,190.71 | 581,442,543.98 | 694,227,657.28 | 804,679,323.48 |
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1. Break down by product or service type
| Item | The current period amount | Amount in previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Power production and sales revenue | 562,688,722.91 | 572,117,240.68 | 650,670,587.61 | 779,733,245.77 |
| Revenue from integrated energy services | 25,681,847.29 | 9,063,601.69 | 41,945,102.65 | 24,687,143.61 |
| Other revenue | 1,409,620.51 | 261,701.61 | 1,611,967.02 | 258,934.10 |
| Total | 589,780,190.71 | 581,442,543.98 | 694,227,657.28 | 804,679,323.48 |
2. By region
| Item | The current period amount | Amount in previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Domestic | 589,780,190.71 | 581,442,543.98 | 694,227,657.28 | 804,679,323.48 |
| Total | 589,780,190.71 | 581,442,543.98 | 694,227,657.28 | 804,679,323.48 |
3. Revenue broken down by time of transfer of goods or services
| Item | The current period amount | Amount in previous period |
| Recognize revenue at a certain time point | 564,098,343.42 | 652,282,554.63 |
| Recognize revenue at a certain time point | 25,681,847.29 | 41,945,102.65 |
| Total | 589,780,190.71 | 694,227,657.28 |
(XL) Taxes and surcharges
| Item | The current period amount | Amount in previous period |
| Property tax | 2,241,783.87 | 2,254,621.19 |
| Land use tax | 887,196.02 | 761,201.97 |
| Stamp duty | 542,870.30 | 827,734.86 |
| Urban maintenance and construction tax | 653,636.44 | 881,150.58 |
| Education surcharge | 277,505.45 | 376,909.09 |
| Local education surcharge | 185,003.66 | 251,272.77 |
| Environmental protection tax | 8,230.82 | 32,638.18 |
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| Item | The current period amount | Amount in previous period |
| Vehicle and vessel tax | 3,390.00 | 15,821.56 |
| Total | 4,799,616.56 | 5,401,350.20 |
(XLI) Selling and distribution expenses
| Item | The current period amount | Amount in previous period |
| Employee compensation | 1,884,492.17 | 273,048.37 |
| Travel expenses | 363,759.10 | |
| Office expenses | 250,648.83 | |
| Entertainment expenses | 160,201.41 | 13,684.45 |
| Agency fee | 141,603.76 | 45,050.50 |
| Others | 31,043.38 | 43,272.46 |
| Total | 2,831,748.65 | 375,055.78 |
(XLII) G&A expenses
| Item | The current period amount | Amount in previous period |
| Employee compensation | 29,928,766.04 | 49,552,978.78 |
| Depreciation cost | 15,161,467.11 | 12,727,414.30 |
| Agency fee | 2,506,646.25 | 2,917,219.44 |
| Entertainment expenses | 1,500,934.74 | 2,262,676.26 |
| Water, electricity and property management fees | 1,094,236.61 | 1,066,655.06 |
| Repair costs | 815,123.18 | 438,047.18 |
| Communication and information fees | 744,919.13 | 632,219.43 |
| Travel expenses | 702,232.98 | 346,228.17 |
| Vehicle usage fee | 607,305.89 | 1,000,874.34 |
| Office expenses | 572,337.65 | 566,218.06 |
| Board of Directors fees | 472,695.27 | 458,825.47 |
| Greening and cleaning fees | 326,335.65 | 207,689.97 |
| Rental fees | 291,561.03 | 326,066.00 |
| Stock related fee | 114,895.51 | 512,986.66 |
| Amortization of intangible assets | 65,558.04 | 76,716.36 |
| Others | 3,425,581.79 | 6,006,535.06 |
| Total | 58,330,596.87 | 79,099,350.54 |
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(XLIII) R&D expenses
| Item | The current period amount | Amount in previous period |
| Employee compensation | 24,140,938.27 | 23,134,437.76 |
| Depreciation cost | 1,705,020.54 | 1,822,436.62 |
| Others | 993,953.93 | 690,660.01 |
| Total | 26,839,912.74 | 25,647,534.39 |
(XLIV) Financial expenses
| Item | The current period amount | Amount in previous period |
| Interest expenses | 18,400,119.58 | 40,218,036.98 |
| Less: interest income | 7,358,119.93 | 8,790,975.96 |
| Exchange losses (income expressed with "-") | -72,164.01 | -460,083.33 |
| Handling charges | 344,806.25 | 247,340.17 |
| Unrecognized amortization of financing expenses | 264,995.49 | 928,484.64 |
| Total | 11,579,637.38 | 32,142,802.50 |
(XLV) Other benefits
1.Details of other income
| Item | The current period amount | Amount in previous period |
| Government subsidies | 44,431,212.00 | 9,033,196.38 |
| Personal tax handling charges refund | 74,677.51 | 299,897.34 |
| Total | 44,505,889.51 | 9,333,093.72 |
2.Government subsidies included in other income
For information on the amount of government subsidies included in other income for the currentperiod, please see Note VIII (II) of the notes to the financial statements.
(XLVI) Investment income
| Item | The current period amount | Amount in previous period |
| Investment income from financial assets held for trading during the holding period | 18,538,064.54 | 58,227,971.21 |
| Dividend income received from investments in equity instruments during the holding period | 8,740,206.13 | 8,853,587.35 |
| Income from long-term equity investments accounted for equity method under the equity method | 7,719,627.80 | 3,635,763.05 |
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| Item | The current period amount | Amount in previous period |
| Total | 34,997,898.47 | 70,717,321.61 |
(XLVII) Losses from credit impairment
| Item | The current period amount | Amount in previous period |
| Provision for bad debts of accounts receivable | 85,000.00 | -1,711,964.42 |
| Provision for bad debts of other receivables | 1,105,348.40 | |
| Total | 1,190,348.40 | -1,711,964.42 |
(XLVIII) Asset impairment loss
| Item | The current period amount | Amount in previous period |
| Inventory depreciation loss and provision for impairment of contract performance cost | -162,985.78 | -661,460.81 |
| Provision for impairment of fixed assets | -7,246,238.48 | |
| Provision for impairment of construction in progress | -1,038,734.63 | |
| Total | -162,985.78 | -8,946,433.92 |
(XLIX) Gains from disposal of assets
| Item | The current period amount | Amount in previous period | Amount included in non-recurring gains and losses in the current period |
| Profits and losses on disposal of non-current assets | 1,886,136.92 | 291,985.88 | 1,886,136.92 |
| Total | 1,886,136.92 | 291,985.88 | 1,886,136.92 |
(L) Non-operating revenue
| Item | The current period amount | Amount in previous period | Amount included in non-recurring gains and losses in the current period |
| Power outage and insurance compensation | 5,522,309.24 | 5,522,309.24 | |
| Payables that really cannot be paid | 3,683,060.82 | 3,683,060.82 | |
| Government subsidies | 39,600.00 | ||
| Others | 2,476,793.13 | 2,476,793.13 | |
| Total | 11,687,001.25 | 39,600.00 | 11,687,001.25 |
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(LI) Non-operating expenses
| Item | The current period amount | Amount in previous period | Amount included in non-recurring gains and losses in the current period |
| Losses from damage or scrapping of non-current assets | 7,745.81 | 1,463,939.59 | 7,745.81 |
| External donations | 10,000.00 | ||
| Others | 58,370.42 | 717,844.64 | 58,370.42 |
| Total | 66,116.23 | 2,191,784.23 | 66,116.23 |
(LII) Income tax expenses
1. Income tax expenses schedule
| Item | The current period amount | Amount in previous period |
| Current income tax expenses | ||
| Deferred income tax expenses | -63,080.11 | |
| Total | -63,080.11 |
2. Adjustment process of accounting profit and income tax expenses
| Item | The current period amount |
| Total profit | -2,005,692.93 |
| Income tax expenses calculated at statutory [or applicable] tax rate | -300,853.94 |
| Impact of different tax rates applicable to subsidiaries | -5,988,013.88 |
| Impact of adjusting prior periods' income taxes | |
| Impact of non-taxable revenue | -1,233,275.33 |
| Impact of non-deductible costs, expenses and losses | 276,028.61 |
| Impact of deductible losses on the use of unrecognized deferred tax assets in prior periods | |
| Impact of deductible temporary differences or deductible losses for which no deferred tax assets have been recognized in the current period | 11,272,101.45 |
| Changes in beginning deferred tax assets/liability balances due to tax rate adjustment | |
| Impact of additional deduction for R&D expenses | -4,025,986.91 |
| Income tax expenses |
(LIII) 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 of outstanding ordinary
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shares of the Company:
| Item | The current period amount | Amount in previous period |
| Consolidated net profit attributable to ordinary shareholders of the parent company | 4,158,797.10 | -160,163,240.67 |
| Weighted average of outstanding ordinary shares of the Company | 602,762,596.00 | 602,762,596.00 |
| Basic earnings per share | 0.0069 | -0.2657 |
2. Diluted earnings per share
| Item | The current period amount | Amount in previous period |
| Consolidated net profit attributable to ordinary shareholders of the parent company (diluted) | 4,158,797.10 | -160,163,240.67 |
| Weighted average of outstanding ordinary shares of the Company (diluted) | 602,762,596.00 | 602,762,596.00 |
| Diluted earnings per share | 0.0069 | -0.2657 |
(LIV) Items of Statement of Cash Flows
1. Cash related to operating activities
（1) Other cash received related to operating activities
| Item | The current period amount | Amount in previous period |
| Income from government subsidies | 30,154,963.47 | 2,800,716.98 |
| Interest income | 6,416,103.02 | 9,272,736.48 |
| Current accounts received, etc. | 9,200,800.64 | 42,010,090.88 |
| Total | 45,771,867.13 | 54,083,544.34 |
(2) Other cash paid related to operating activities
| Item | The current period amount | Amount in previous period |
| Expenses from payment period | 32,799,144.64 | 24,583,319.72 |
| Current accounts paid, etc. | 3,524,581.70 | 1,221,929.96 |
| Total | 36,323,726.34 | 25,805,249.68 |
2. Cash related to investing activities
(1) Other cash received related to investing activities
| Item | The current period amount | Amount in previous period |
| Received interest on current accounts among related parties | 344,800.00 | |
| Total | 344,800.00 |
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(2) Other cash payments related to investing activities
| Item | The current period amount | Amount in previous period |
| Deposit of financial assets held for trading and large certificates of deposit for cash payments | 446,000,000.00 | 180,000,000.00 |
| Cash paid for disposal of assets | 393,066.79 | 9,000.00 |
| Total | 446,393,066.79 | 180,009,000.00 |
3. Cash related to financing activities
（1）Other cash paid related to financing activities
| Item | The current period amount | Amount in previous period |
| Note deposit | 27,474,594.34 | |
| Rental fees | 6,314,826.00 | |
| Total | 6,314,826.00 | 27,474,594.34 |
（2）Changes in liabilities arising from financing activities
| Item | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance | ||
| Cash changes | Non-cash changes | Cash changes | Non-cash changes | |||
| Lease liabilities (including those due within one year) | 8,276,279.98 | 830,697.03 | 6,314,826.00 | 264,995.49 | 2,527,155.52 | |
| Short-term borrowings (including those due within one year) | 879,957,857.44 | 341,933,506.37 | 5,575,880.96 | 886,229,358.05 | 341,237,886.72 | |
| Long-term borrowings | 28,019,758.68 | 79,160,420.53 | 57,868.77 | 47,009,450.75 | 60,228,597.23 | |
| Total | 916,253,896.10 | 421,093,926.90 | 6,464,446.76 | 939,553,634.80 | 264,995.49 | 403,993,639.47 |
(LV) Supplementary information of Statement of Cash Flows
1. Supplementary information of Statement of Cash Flows
| Supplementary information | The current period amount | Amount in previous period |
| 1. Adjusting net profit to cash flows from |
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| Supplementary information | The current period amount | Amount in previous period |
| operating activities | ||
| Net profit | -2,005,692.93 | -185,522,860.86 |
| Plus: losses from credit impairment | -1,190,348.40 | 1,711,964.42 |
| Provision for asset impairment | 162,985.78 | 8,946,433.92 |
| Depreciation and amortization of investment properties | 168,777.60 | 175,707.60 |
| Depreciation of fixed assets | 29,328,545.77 | 31,258,029.09 |
| Depreciation of right-of-use assets | 5,440,671.48 | 8,614,396.47 |
| Amortization of intangible assets | 589,301.32 | 701,403.22 |
| Amortization of long-term deferred expenses | 916,014.97 | 497,331.12 |
| Amortization of deferred income | -17,966,248.53 | -6,324,373.49 |
| Losses from disposal of fixed assets, intangible assets and other long-term assets (income expressed with "-") | -1,886,136.92 | -291,985.88 |
| Losses on write-off of fixed assets (income expressed with "-") | 7,745.81 | 1,463,939.59 |
| Losses from changes in fair value (income expressed with "-") | ||
| Financial expenses (income expressed with "-") | 18,665,115.07 | 40,218,036.98 |
| Investment losses (income expressed with "-") | -34,997,898.47 | -70,717,321.61 |
| Decrease in deferred tax assets (increases expressed with "-") | -63,080.11 | |
| Increase in deferred tax liabilities (decreases expressed with "-") | ||
| Decrease in inventories (increases expressed with "-") | -1,023,698.59 | 5,500,517.27 |
| Decrease in operating receivables (increases expressed with "-") | 43,475,853.03 | 289,715,229.11 |
| Increase in operating payables (decreases expressed with "-") | -140,056,963.91 | 81,285,035.42 |
| Others | ||
| Net cash flows from operating activities | -100,371,976.92 | 207,168,402.26 |
| 2. Significant investments and financing activities that do not involve cash receipts and payments | ||
| Conversion of debt into capital | ||
| Convertible corporate bonds due within one year | ||
| Fixed assets acquired under financial lease | ||
| 3. Net changes in cash and cash equivalents | ||
| Ending balance of cash | 310,734,919.56 | 648,021,672.06 |
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| Supplementary information | The current period amount | Amount in previous period |
| Less: beginning balance of cash | 648,021,672.06 | 456,751,614.75 |
| Plus: ending balance of cash equivalents | ||
| Less: beginning balance of cash equivalents | 232,853,018.84 | |
| Net increase in cash and cash equivalents | -337,286,752.50 | -41,582,961.53 |
2. Composition of cash and cash equivalents
| Item | Ending balance | Balance at the end of last year |
| I. Cash | 310,734,919.56 | 648,021,672.06 |
| Including: cash on hand | 30,329.83 | 37,698.63 |
| Bank deposits readily available for payment | 310,694,227.98 | 647,983,965.23 |
| Other monetary funds readily available for payment | 10,361.75 | 8.20 |
| Deposits with the central bank available for payment | ||
| Interbank deposits | ||
| Interbank lending | ||
| II. Cash equivalents | ||
| Including: bond investments due within three months | ||
| III. Balance of ending cash and cash equivalents | 310,734,919.56 | 648,021,672.06 |
| Including: restricted cash and cash equivalents used by the parent company or subsidiaries within the group |
3. Monetary funds that are not classified as cash and cash equivalents
| Item | The current period amount | Amount in previous period | Reasons for not being classified as cash and cash equivalents |
| L/G deposit | 5,453,862.93 | Frozen, restricted | |
| Deposit for bank acceptance bills | 27,474,594.34 | Frozen, restricted | |
| Total | 5,453,862.93 | 27,474,594.34 |
(LVI) Assets with restricted ownership or right of use
| Item | Ending book value | Reason for restriction |
| Monetary funds | 5,453,862.93 | L/G deposit |
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| Item | Ending book value | Reason for restriction |
| Total | 5,453,862.93 |
(LVII) Foreign currency monetary items
1. Foreign currency monetary items
| Item | Ending foreign currency balance | Conversion exchange rate | Ending converted RMB balance |
| Monetary funds | |||
| Including: USD | 838,420.63 | 7.0827 | 5,931,199.10 |
| EUR | 1,017.87 | 7.8592 | 7,999.64 |
| HKD | 179,036.04 | 0.90622 | 162,246.04 |
| SGD | 3,328.03 | 5.3772 | 17,895.49 |
(LVIII) Lease
1. The Company serves as the Lessee
| Item | The current period amount | Amount in previous period |
| Interest expenses on lease liabilities | 264,995.49 | 928,484.64 |
| Total cash outflow related to lease | 6,314,826.00 | 6,014,119.00 |
| Total | 6,579,821.49 | 6,942,603.64 |
2. The Company serves as the Lessor
（1）Operating leases when serving as the Lessor
| Item | Lease income | Including: revenue related to variable lease payments not included in lease receipts |
| House lease | 1,258,431.54 | |
| Total | 1,258,431.54 |
VI. R&D expenditures
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Employee compensation | 24,140,938.27 | 23,134,437.76 |
| Depreciation and amortization costs | 1,705,020.54 | 1,822,436.62 |
| Repair costs | 946,164.21 | 581,590.04 |
| Royalties | 47,789.72 | 108,219.97 |
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Notes to the Financial statements Page 72
| Item | Amount incurred in the current period | Amount incurred in previous period |
| Others | 850.00 | |
| Total | 26,839,912.74 | 25,647,534.39 |
| Including: expensed R&D expenditures | 26,839,912.74 | 25,647,534.39 |
| Capitalized R&D expenditures | ||
| Total | 26,839,912.74 | 25,647,534.39 |
VII. Equity in other entities(I) Equity in subsidiaries
1. Composition of enterprise group
| Name of subsidiary | Main place of business | Shareholding ratio (%) | Acquisition method | |
| Direct | Indirect | |||
| Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. | Zhongshan | 80.00 | Establishment | |
| Shenzhen Nanshan Power Gas Turbine Engineering Technology (Shenzhen) Co., Ltd. | Shenzhen | 100.00 | Establishment | |
| Shenzhen Nanshan Power Environmental Protection (Shenzhen) Co., Ltd. | Shenzhen | 100.00 | Establishment | |
| Shenzhen Xiefu Energy Co., Ltd. | Shenzhen | 50.00 | Establishment | |
| Shenzhen New Power Industrial Co., Ltd. | Shenzhen | 100.00 | Establishment | |
| Shennan Energy (Singapore) Co., Ltd. | Singapore | 100.00 | Establishment | |
| Hong Kong Syndisome Co., Ltd. | Hongkong | 100.00 | Establishment | |
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | Zhuhai | 99.96 | Establishment | |
Note: Shenzhen Nanshan Power (Zhongshan) Warehousing Co., Ltd. was canceled on December13, 2023.
2. Important non-wholly owned subsidiaries
| Name of subsidiary | Shareholding ratio of minority shareholders (%) | Profits and losses attributable to minority shareholders in the current period | Ending balance of minority interests |
| Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. | 20.00 | -6,239,610.76 | -106,399,280.71 |
1、
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3. Main financial information of important non-wholly owned subsidiaries
| Name of subsidiary | Ending balance/RMB | Balance at the end of the previous year/RMB | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. (Shenzhen Nanshan Power Zhongshan Company) | 24,201,215.36 | 244,116,938.96 | 268,318,154.32 | 696,314,557.88 | 104,000,000.00 | 800,314,557.88 | 43,407,571.96 | 216,418,067.18 | 259,825,639.14 | 755,501,588.98 | 5,122,399.93 | 760,623,988.91 |
| Name of subsidiary | Amount for the current period/RMB | Amount in previous period/RMB | ||||||
| Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | |
| Shenzhen Nanshan Power (Zhongshan) | 62,908,561.23 | -31,198,053.79 | -31,198,053.79 | -1,869,970.79 | 18,619,522.44 | -111,394,129.17 | -111,394,129.17 | 69,486,856.28 |
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| Name of subsidiary | Amount for the current period/RMB | Amount in previous period/RMB | ||||||
| Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | |
| Power Co., Ltd. (Shenzhen Nanshan Power Zhongshan Company) | ||||||||
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(II) Equity in joint venture arrangements or associates
1. Significant joint ventures or associates
| Name of joint ventures or associates | Main place of business | Main business activities | Shareholding ratio (%) | Accounting treatments for investments in joint ventures or associates | |
| Direct | Indirect | ||||
| Huidong Xiefu | Renshan Town, Huidong County | Terminal operations | 40.00 | Equity method | |
| Liaoyuan Environmental Protection (note) | Yixing, Jiangsu | Environmental protection | 9.935 | Equity method | |
Note: The Company invested RMB 72,873,680.00 in Liaoyuan Environmental Protection,accounting for 9.935% of the equity of Liaoyuan Environmental Protection, making it the secondlargest shareholder Liaoyuan Environmental Protection.. The Board of Directors of LiaoyuanEnvironmental Protection has five members, with the Company appointing one member on March12, 2022, which has a significant influence on Liaoyuan Environmental Protection.
2. Main financial information of significant joint ventures or associates
| Ending balance/amount incurred in the current period | Balance at the end of previous year/amount incurred in previous period | |||
| Liaoyuan Environmental Protection | Huidong Xiefu | Liaoyuan Environmental Protection | Huidong Xiefu | |
| Current assets | 545,635,587.61 | 9,376,533.54 | 596,029,890.70 | 7,664,392.90 |
| Non-current assets | 419,944,510.12 | 9,354,277.78 | 440,877,926.65 | 10,364,232.86 |
| Total assets | 965,580,097.73 | 18,730,811.32 | 1,036,907,817.35 | 18,028,625.76 |
| Current liabilities | 198,836,634.15 | 36,567,083.73 | 345,141,327.50 | 37,712,176.91 |
| Non-current liabilities | 26,202,854.57 | 25,415,201.79 | ||
| Total liabilities | 225,039,488.72 | 36,567,083.73 | 370,556,529.29 | 37,712,176.91 |
| Minority interests | 223,928,134.66 | 207.978.431.69 | ||
| Equity attributable to shareholders of the parent company | 516,612,474.35 | -17,836,272.41 | 458,372,856.37 | -19,683,551.15 |
| Net asset share calculated based on shareholding ratio | 51,325,449.33 | -7,134,508.96 | 45,539,343.28 | -7,873,420.46 |
| Adjustments | 33,508,393.41 | 12,301,842.26 | 33,542,733.16 | 12,287,442.26 |
| -Others | 33,508,393.41 | 12,301,842.26 | 33,542,733.16 | 12,287,442.26 |
| Book value of equity investments in associates | 84,833,842.74 | 5,167,333.30 | 79,082,076.44 | 4,414,021.80 |
| Fair value of equity investments in associates with publicly quoted prices | ||||
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| Ending balance/amount incurred in the current period | Balance at the end of previous year/amount incurred in previous period | |||
| Liaoyuan Environmental Protection | Huidong Xiefu | Liaoyuan Environmental Protection | Huidong Xiefu | |
| Operating revenue | 660,404,337.83 | 8,268,259.69 | 646,656,060.19 | 7,234,419.21 |
| Net profit | 85,937,325.14 | 1,883,278.74 | 138,734,347.94 | -632,550.08 |
| Net profit attributable to shareholders of the parent company | 68,971,850.12 | 1,883,278.74 | 116,960,145.29 | -632,550.08 |
| Net profit from discontinued operations | ||||
| Other comprehensive income | ||||
| Total comprehensive income | 68,971,850.12 | 1,883,278.74 | 116,960,145.29 | -632,550.08 |
| Dividends received from associates in the current period | 1,214,550.00 | |||
VIII. Government subsidies
(1) Liability items involving government subsidies
| Liabilities | Balance at the end of last year | New subsidy amount in the current period | Amount included in non-operating revenue in the current period | Amount transferred to other income in the current period | Other changes in the current period | Ending balance | Related to assets/income |
| Deferred income | 82,145,596.60 | 3,690,000.00 | 17,966,248.53 | 67,869,348.07 | Asset related | ||
| Total | 82,145,596.60 | 3,690,000.00 | 17,966,248.53 | 67,869,348.07 |
The details of the projects involving government subsidies are as follows:
| Item | Balance at the end of last year | New subsidy amount in the current period | Amount recognized in profit or loss in the current period | Other changes | Ending balance | Asset related/income related |
| Shenzhen air quality improvement subsidy | 49,330,169.80 | 4,731,818.16 | 44,598,351.64 | Asset related | ||
| Government subsidies for low-nitrogen equipment renovation | 23,615,664.69 | 5,239,056.75 | 18,376,607.94 | Asset related |
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| Circular economy support fund for sludge drying project | 5,510,265.19 | 4,564,285.60 | 945,979.59 | Asset related | ||
| Treasury bond subsidy for sludge drying project | 2,061,250.00 | 2,061,250.00 | Asset related | |||
| Funds for technological transformation and investment projects in 2021-2022 | 988,055.58 | 70,666.68 | 917,388.90 | Asset related | ||
| Special funds for energy conservation and emission reduction | 342,111.34 | 342,111.34 | Asset related | |||
| Motor energy efficiency improvement subsidy scheme | 298,080.00 | 34,560.00 | 263,520.00 | Asset related | ||
| Special funds for promoting high-quality industrial development | 1,500,000.00 | 375,000.00 | 1,125,000.00 | Asset related | ||
| Funding for Carbon Peak Support Program Industrial Energy Conservation and Comprehensive Utilization Project | 2,190,000.00 | 547,500.00 | 1,642,500.00 | Asset related | ||
| Total | 82,145,596.60 | 3,690,000.00 | 17,966,248.53 | 67,869,348.07 |
(II) Government subsidies included in the current profits and losses
| Subsidy project | Amount incurred in the current period | Amount incurred in previous period |
| Other benefits | 44,431,212.00 | 9,033,196.38 |
| Non-operating revenue | 39,600.00 |
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| Total | 44,431,212.00 | 9,072,796.38 |
Details of government subsidies included in other income are as follows:
| Subsidy project | The current period amount | Amount in previous period | Asset related/income related |
| Low nitrogen project renovation grants | 5,239,056.75 | 488,621.77 | Asset related |
| Shenzhen air quality improvement subsidy | 4,731,818.16 | 4,731,818.16 | Asset related |
| Circular economy support fund for sludge drying project | 4,564,285.60 | 647,002.92 | Asset related |
| Treasury bond subsidy for sludge drying project | 2,061,250.00 | 255,000.00 | Asset related |
| Special funds for energy conservation and emission reduction | 342,111.34 | 114,037.32 | Asset related |
| Motor energy efficiency improvement subsidy scheme | 34,560.00 | 34,560.00 | Asset related |
| Funds for technological transformation and investment projects in 2021-2022 | 70,666.68 | 53,333.32 | Asset related |
| Pilot demonstration funding for industrial "carbon peak" work | 375,000.00 | Asset related | |
| Industrial development special grants | 547,500.00 | Asset related | |
| Thermal power plant relief grants | 25,400,000.00 | Income related | |
| Green and low-carbon development project grants | 450,000.00 | Income related | |
| National high-tech enterprise doubling program | 300,000.00 | 500,000.00 | Income related |
| Stable employment subsidy | 140,838.47 | 153,231.98 | Income related |
| Pilot demonstration funding for industrial "carbon peak" work | 100,000.00 | 570,000.00 | Income related |
| Science and technology innovation voucher | 46,500.00 | 28,000.00 | Income related |
| Special funds for industrial development | 27,625.00 | Income related | |
| Industrial development special grants | 246,100.00 | Income related | |
| One-time training subsidy for employees who stay on duty | 128,000.00 | Income related | |
| Support funds for office buildings of listed companies | 1,000,000.00 | Income related | |
| Social security subsidies | 83,490.91 | Income related | |
| Total | 44,431,212.00 | 9,033,196.38 |
IX. Risks related to financial instrumentsThe Company's main financial instruments include equity investments, long-term and short-termborrowings, accounts receivable, accounts payable, other receivables, etc. For details of variousfinancial instruments, please refer to the relevant items in the Note V. The risks related to thesefinancial instruments, and the risk management policies adopted by the Company to mitigate theserisks are described below. The management of the Company manages and monitors these risk
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exposures to ensure that the above risks are controlled within a limited range.The Company uses sensitivity analysis techniques to analyze the impact that reasonable andprobable changes in risk variables may have on current profit or loss or shareholders' equity. Sinceany risk variables rarely changes in isolation, and the correlation between variables will have asignificant effect on the final amount of impact of a change in a certain risk variable, the followingis therefore based on the assumption that changes in each variable are made independently of eachother:
(I) Credit riskCredit risk refers to the risk that one party to financial instruments fails to perform its obligations,causing the other party to suffer financial losses. The Company is mainly exposed to customercredit risk caused by credit sales. Before entering into a new contract, the Company assesses thecredit risk of the new customers, including external credit ratings and, in some cases, bankreferences (when this information is available). The Company sets a credit limit for each customer,which is the maximum amount for which no additional approval is required.The Company ensures that the Company's overall credit risk is within a controllable range throughquarterly monitoring of credit ratings of existing customers and monthly review of aging analysisof accounts receivable. When monitoring the credit risk of customers, customers are groupedaccording to their credit characteristics. Customers rated as "high risk" are placed on the restrictedcustomer list and may only be given for credit sales by the Company in the future with additionalapproval, otherwise they must be required to pay the corresponding amount in advance.
(II) Liquidity riskLiquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligations thatis settled by the delivery of cash or other financial assets. It is the Company's policy to ensure thatit has sufficient cash to repay its debts as and when they fall due. Liquidity risk is centrallycontrolled by the Company's Finance Department. The Finance Department ensures that theCompany has sufficient funds to repay its debt under all reasonable forecasts by monitoring cashbalances, readily realizable securities, and rolling forecasts of cash flows over the next 12 months.
(III) Market riskMarket risk of financial instruments refers to the risk that the fair value or future cash flows offinancial instruments fluctuates due to changes in market prices, including exchange rate risk,interest rate risk and other price risks.
(1) Interest rate risk
Interest rate risk refers to the risk that the fair value or future cash flows of financial instrumentsfluctuates due to changes in market interest rates. The Company's risk of changes in cash flows offinancial instruments due to changes in interest rates is mainly related to variable-rate bankborrowings.The sensitivity analysis of interest rate risk is based on the following assumptions:
changes in market interest rates affect interest income or expenses of variable-rate financialinstruments; for fixed-rate financial instruments measured fair value, changes in market interestrates only affect their interest income or expenses; for derivative financial instruments designatedas hedging instruments, changes in market interest rates affect their fair value, and all interest ratehedging is expected to be highly effective; changes in the fair value of derivative financialinstruments and other financial assets and liabilities which are calculated by using the discountedcash flow method at the market interest rate on the balance sheet date.As of December 31, 2023, the Company's interest on bank borrowings at variable rates totaledRMB 4,087,502.74. Based on the above assumptions, with other variables unchanged, assuming a5% changes in interest rates, the pre-tax impact on current profits and losses and shareholders'equity is as follows:
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| Changes in interest rates | Current year | Previous year | ||
| Impact on profits | Impact on shareholders' equity | Impact on profits | Impact on shareholders' equity | |
| Increase of 5% | -204,375.14 | -204,375.14 | -365,252.94 | -365,252.94 |
| Decrease of 5% | 204,375.14 | 204,375.14 | 365,252.94 | 365,252.94 |
(2) Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flows of financial instrumentsfluctuates due to fluctuations in foreign exchange rates. The Company tries its best to matchforeign currency revenues with foreign currency expenditures to reduce exchange rate risk. Inaddition, the Company may also enter into forward foreign exchange contracts or currency swapcontracts to avoid exchange rate risk. During the current period and the previous period, theCompany did not sign any forward foreign exchange contract or currency swap contract.The exchange rate risk exposed to the Company mainly comes from financial assets and financialliabilities denominated in foreign currencies, and the amounts of foreign-currency financial assetsand foreign-currency financial liabilities converted into RMB are listed as follows:
| Item | Ending balance | Balance at the end of last year | ||||
| USD | Other foreign currencies | Total | USD | Other foreign currencies | Total | |
| Monetary funds | 5,938280.40 | 188,141.17 | 6,119,340.27 | 5,815,610.10 | 279,292.55 | 6,094,902.65 |
| Total | 5,938280.40 | 188,141.17 | 6,119,340.27 | 5,815,610.10 | 279,292.55 | 6,094,902.65 |
As of December 31, 2023, with all other variables remaining unchanged, if RMB appreciates ordepreciates by 5% against foreign currencies, the Company's net profit will increase or decreaseby RMB 306,321.08. The Management believes that 5% reasonably reflects the reasonable rangeof possible changes in RMB against foreign currencies in the following year.X. Disclosure of fair valueThe input value used for measuring fair value is divided into three levels:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilitiesthat the Company can access on the measurement date.Level 2 inputs are directly or indirectly observable inputs of relevant assets or liabilities other thanLevel 1 inputs.Level 3 inputs are unobservable inputs of related assets or liabilities.The level to which the results of fair value measurement belong is determined by the lowest levelof inputs that are significant to fair value measurement as a whole.
1. Fair values of assets and liabilities measured at fair value as at December 31, 2023
| Item | Fair value as at December 31, 2023 | |||
| Measured at the fair value of level 1 | Measured at the fair value of level 2 | Measured at the fair value of level 3 | Total | |
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| Item | Fair value as at December 31, 2023 | |||
| Measured at the fair value of level 1 | Measured at the fair value of level 2 | Measured at the fair value of level 3 | Total | |
| Continuous measurement at fair value | ||||
| Financial assets held for trading | 226,000,000.00 | 226,000,000.00 | ||
| Other investments in equity instruments | 300,615,000.00 | 300,615,000.00 | ||
| Total assets with continuous measurement at fair value | 526,615,000.00 | 526,615,000.00 | ||
2. Basis for determining the market price of items measured at the fair value of level 3 on acontinuing and non-continuous basisFor financial instruments that are not traded in the active market, the Company uses valuationtechniques to determine their fair values. The valuation models used mainly are discounted cashflow model and market comparable company model, etc. The input values of valuation techniquesmainly include risk-free interest rate, benchmark interest rate, exchange rate, credit spread,liquidity premium, illiquidity discount, etc.
XI.. Related parties and related transactions(I) Information on the parent company of the CompanyThe Company does not have a parent company as none of its shareholders hold more than 50% ofthe Company's shares and cannot form a control relationship with the Company by other means.
(II) Information on the Company's subsidiariesFor details of the Company's subsidiaries, please refer to the Note "VII. (I) Equity in subsidiaries".
(III) Information on the Company's joint ventures and associatesFor details of the Company's significant joint ventures or associates, please refer to the Note "VII.(II) Equity in joint venture arrangements or associates".(IV) Information on other related parties
| Name of other related parties | Relationship between other related parties and the Company |
| Shenzhen Energy Corporation (hereinafter referred to as "Energy Corporation") | Legal person holding more than 5% of the Company's shares |
| Shenzhen Guangju Industrial Co., Ltd. | Legal person holding more than 5% of the Company's shares |
| HONG KONG NAM HOI (INTERNATIONAL) LTD | Legal person holding more than 5% of the Company's shares |
| Shenzhen Capital Holdings Co., Ltd. | Legal person that indirectly holds more than 5% of the Company's shares through Energy Corporation |
| Artron Art (Group) Co., Ltd. | Sun Huirong, the director of the |
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| Name of other related parties | Relationship between other related parties and the Company |
| Company, serves as a director of this company | |
| Directors, supervisors and senior officers of the Company | Key managers |
(V) Related transactions
1. Related transactions of purchase and sale of goods and rendering and acceptance ofservicesPurchase of goods/acceptance of services
Unit: RMB
| Related party | Details of related transactions | Amount incurred in the current period | Amount of transactions approved | Whether the transaction limit is exceeded | Amount incurred in previous period |
| Artron Art (Group) Co., Ltd. | Purchase of goods | 146,016.00 |
2. Related guarantees
The Company has no related-party guarantees.
3. Remuneration of key officers
| Item | The current period amount | Amount in previous period |
| Remuneration of directors, supervisors and senior officers | RMB 5.9984 million | RMB 7.5319 million |
(VI) Receivables and payables of related parties
1. Receivables
| Project name | Related party | Ending book balance | Book balance at the end of last year |
| Other receivables | |||
| Huidong Xiefu | 15,532,630.74 | 15,640,915.45 | |
| Total | 15,532,630.74 | 15,640,915.45 |
XII. Commitments and contingencies(I) Important commitments
1. Information on letters of guarantee issued as of December 31, 2023
Within the credit limit, the Company applied to the Shenzhen Branch of China Guangfa Bank fora performance bond for the Company and its wholly-owned subsidiary, New Power Company,with an amount of RMB 27,202,171.15, which will expire on March 31, 2024.Within the credit limit, the Company applied to the Shenzhen Branch of China Minsheng Bank
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Co., Ltd. for a performance bond for the Company and its wholly-owned subsidiary, New PowerCompany, with an amount of RMB 30,000,000.00, which will expire on June 30, 2024.
2. Other commitments
As of December 31, 2023, except for the above matters, the Company has no other importantcommitments that need to be disclosed.(II) ContingenciesAs of December 31, 2023, the Company has no contingencies that need to be disclosed.
XIII. Events after the balance sheet date
(I) Important non-adjusting events
1. After the audit and approval of the 23rd Extraordinary Meeting of the Ninth Board of Directorson February 6, 2024, Shenzhen Nanshan Power Zhongshan Company, a subsidiary of theCompany, intends to classify and package and dispose of two sets of generating units and heavyoil processing line related assets through public invitation for offer and transfer on ShenzhenUnited Property and Equity Exchange (hereinafter referred to as "Shenzhen Stock Exchange").The above assets have an assessed value of RMB 159.4852 million excluding tax. ShenzhenPengxin Asset Appraisal Land and Real Estate Valuation Co., Ltd. has issued an appraisal reportwith October 31, 2023 as the appraisal base date (PXZPBZ [2023] No. S211, PXZPBZ [2023] No.S212).
2. After deliberation and approval at the 22nd Extraordinary Meeting of the Ninth Board ofDirectors of the Company, the Company and its held subsidiary Xiefu Company intend to enterinto a Property Entrustment Management Contract with the Energy Group, specifying that theCompany will serve as the supervisory and guiding entity, and Xiefu Company will provideproperty leasing and management services to the Energy Group. Energy Group will entrust andauthorize Xiefu Company to operate and manage the 13 properties it holds. Period of entrustedmanagement: 5 years (From January 1, 2024 to December 31, 2024 is the period of trial operation,and from January 1, 2025 to December 31, 2028 is the period of formal operation).Apart from this, as of the date of this report, the Company has no subsequent events that need tobe disclosed.
XIV. Other important events(I) Information on segments
1. Determination basis and accounting policies of reporting segments
For management purposes, the Company and subsidiaries are divided into business units based onproducts and services. The Company has three reporting segments as follows:
（1）Power production and sale segment;
（2）Integrated energy service segment;
（3）Other Segments
The Company's management periodically evaluates the operating results of its operating segmentsto decide on the allocation of resources to them and to evaluate their performance.Segment reporting information is disclosed in accordance with the accounting policies andmeasurement criteria used by the segments in reporting to the Management, which are consistentwith the basis of accounting and measurement used in the preparation of the financial statements.
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2. Financial information of reporting segments
| Item | Power Production and Sale Division | Integrated Energy Service Segment | Other Segments | Inter-segment offseting | Total |
| Operating revenue | 563,055,729.51 | 26,287,885.03 | 1,101,142.92 | 664,566.75 | 589,780,190.71 |
| Operating costs | 572,347,128.29 | 9,063,601.69 | 189,242.84 | 157,428.84 | 581,442,543.98 |
| Total assets | 2,230,338,488.91 | 145,669,771.41 | 358,772,209.04 | 685,415,080.67 | 2,049,365,388.69 |
| Total liabilities | 835,651,310.37 | 67,164,161.20 | 22,582,902.16 | 266,846,346.69 | 658,552,027.04 |
(II) OthersAnnuity planAccording to the Company's enterprise annuity plan, the Company accrues and pays enterpriseannuities at 8% of employees' wages.
XV. Notes to the main items of the parent company's financial statements(I) Accounts receivable
1. Disclosure of accounts receivable on an aging basis
| Aging | Ending balance | Balance at the end of last year |
| Within 1 year | 26,981,407.91 | 47,995,982.82 |
| Subtotal | 26,981,407.91 | 47,995,982.82 |
| Less: provision for bad debts | ||
| Total | 26,981,407.91 | 47,995,982.82 |
2. Accounts receivable are classified and disclosed according to the method of provision forbad debts
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad | |||||
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| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| debts on an individual basis | |||||
| Provision provision for bad debts on a credit risk portfolio basis | 26,981,407.91 | 100.00 | 26,981,407.91 | ||
| Total | 26,981,407.91 | 100.00 | 26,981,407.91 | ||
| Category | Balance at the end of last year | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | |||||
| Provision provision for bad debts on a credit risk portfolio basis | 47,995,982.82 | 100.00 | 47,995,982.82 | ||
| Total | 47,995,982.82 | 100.00 | 47,995,982.82 | ||
(1) Provision for bad debts on a portfolio basis:
| Name of portfolio | Ending balance | ||
| Accounts receivable | Provision for bad debts | Provision ratio (%) | |
| Portfolio II: receivables from power production and sales | 26,981,407.91 | ||
| Total | 26,981,407.91 | ||
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3. Accounts receivable and contract assets of the top five ending balances by debtors
| Entity name | Ending balance of accounts receivable | Ending balance of contract assets | Ending balance of accounts receivable and contract assets | Proportion to the total ending balance of accounts receivable and contract assets (%) | Ending balance of provision for bad debts of accounts receivable and provision for contract asset impairment |
| Shenzhen Power Supply Bureau Co., Ltd. | 26,981,407.91 | 26,981,407.91 | 100.00 | ||
| Total | 26,981,407.91 | 26,981,407.91 | 100.00 |
(II) Other receivables
| Item | Ending balance | Balance at the end of last year |
| Interest receivable | ||
| Dividends receivable | ||
| Other receivables | 714,553,901.02 | 851,189,111.89 |
| Total | 714,553,901.02 | 851,189,111.89 |
1. Other receivables
(1) Disclosure based on aging
| Aging | Ending balance | Balance at the end of last year |
| Within 1 year | 711,403,571.07 | 452,449,473.00 |
| 1 to 2 years | 2,500.00 | 94,733,821.40 |
| 2 to 3 years | 19,926.83 | |
| Over 3 years | 29,172,845.44 | 331,315,534.10 |
| Subtotal | 740,578,916.51 | 878,518,755.33 |
| Less: provision for bad debts | 26,025,015.49 | 27,329,643.44 |
| Total | 714,553,901.02 | 851,189,111.89 |
(2) Disclosure by category
| Category | Ending balance | ||
| Book balance | Provision for bad debts | Book value | |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 87
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | 26,025,015.49 | 3.51 | 26,025,015.49 | 100.00 | |
| Provision provision for bad debts on a credit risk portfolio basis | 714,553,901.02 | 96.49 | 714,553,901.02 | ||
| Total | 740,578,916.51 | 100.00 | 26,025,015.49 | 3.51 | 714,553,901.02 |
| Category | Balance at the end of last year | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | 27,617,758.22 | 3.14 | 27,329,643.44 | 98.96 | 288,114.78 |
| Provision provision for bad debts on a credit risk portfolio basis | 850,900,997.11 | 96.86 | 850,900,997.11 | ||
| Total | 878,518,755.33 | 100.00 | 27,329,643.44 | 3.11 | 851,189,111.89 |
① Provision for bad debts on an individual basis:
| Name | Balance at the end of last year | Ending balance | ||||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | Provision ratio (%) | Reasons for provision | |
| Huiyang Kangtai Industrial Company | 14,311,626.70 | 14,311,626.70 | 14,311,626.70 | 14,311,626.70 | 100.00 | Not expected to be recovered |
| Receivables from employee benefit fund dividends and taxes | 9,969,037.63 | 9,969,037.63 | 9,969,037.63 | 9,969,037.63 | 100.00 | Not expected to be recovered |
| Receivables from purchase | 1,736,004.16 | 1,736,004.16 | 1,736,004.16 | 1,736,004.16 | 100.00 | Not expected to be |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
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| Name | Balance at the end of last year | Ending balance | ||||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | Provision ratio (%) | Reasons for provision | |
| of employee dormitories | recovered | |||||
| Others | 1,601,089.73 | 1,312,974.95 | 8,347.00 | 8,347.00 | 100.00 | Not expected to be recovered |
| Total | 27,617,758.22 | 27,329,643.44 | 26,025,015.49 | 26,025,015.49 | 100.00 | |
① Provision for bad debts on a portfolio basis
| Name | Ending balance | ||
| Other receivables | Provision for bad debts | Provision ratio (%) | |
| Portfolio IV: transactions among related parties within the combination | 712,425,641.88 | ||
| Portfolio V: guarantee, deposit and petty cash portfolio | 1,625,577.32 | ||
| Portfolio VII: other receivables and temporary payments | 502,681.82 | ||
| Total | 714,553,901.02 | ||
(3) Classification by nature of payment
| Nature of payment | Ending book balance | Book balance at the end of last year |
| Transactions among related parties within the combination | 712,425,641.88 | 850,503,678.18 |
| Other receivables and temporary payments | 14,645,149.15 | 16,178,134.74 |
| Receivable from employees | 11,882,548.16 | 10,084,796.20 |
| Margin, security deposit and petty cash portfolio | 1,625,577.32 | 1,752,146.21 |
| Subtotal | 740,578,916.51 | 878,518,755.33 |
| Less: provision for bad debts | 26,025,015.49 | 27,329,643.44 |
| Total | 714,553,901.02 | 851,189,111.89 |
(4) Provision provision for bad debts
| Provision for bad debts | The first stage | The second stage | The third phase | Total |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 89
| Expected credit losses over the next 12 months | Expected credit loss over the life of the instruments (no credit impairment has occurred) | Expected credit loss over the life of the instruments (credit impairment has occurred) | ||
| Beginning balance | 27,329,643.44 | 27,329,643.44 | ||
| Beginning balance in the current period | ||||
| --Transfer to the second stage | ||||
| --Transfer to the third stage | ||||
| --Reverse to the second stage | ||||
| --Reverse to the first stage | ||||
| Provision for the current period | 129,806.28 | 129,806.28 | ||
| Reverse for the current period | 1,235,154.68 | 1,235,154.68 | ||
| Charge-off for the current period | 199,279.55 | 199,279.55 | ||
| Write-off for the current period | ||||
| Other changes | ||||
| Ending balance | 26,025,015.49 | 26,025,015.49 |
(5) Centralized fund management
| Amounts included in other receivables due to centralized fund management | 690,731,979.36 |
| Situation description | The Company centrally manages the funds of its subsidiaries, with principal and interest receivable from the subsidiaries amounting to RMB 690,731,979.36 and principal and interest payable to subsidiaries amounting to RMB 95,299,883.34. |
(III) Long-term equity investments
| Item | Ending balance | Balance at the end of last year | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Investments in subsidiar | 855,811,150.92 | 445,002,245.26 | 410,808,905.66 | 718,091,322.09 | 445,002,245.26 | 273,089,076.83 |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
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| Item | Ending balance | Balance at the end of last year | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| ies | ||||||
| Investments in associates and joint ventures | 84,833,842.74 | 84,833,842.74 | 79,082,076.44 | 79,082,076.44 | ||
| Total | 940,644,993.66 | 445,002,245.26 | 495,642,748.40 | 797,173,398.53 | 445,002,245.26 | 352,171,153.27 |
1. Investments in subsidiaries
| Investees | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance | Provision for impairment in the current period | Ending balance of provision for impairment |
| Shenzhen Xiefu Energy Co., Ltd. | 26,650,000.00 | 26,650,000.00 | ||||
| Shennan Energy (Singapore) Co., Ltd. | 6,703,800.00 | 6,703,800.00 | ||||
| Shenzhen New Power Industrial Co., Ltd. | 71,270,000.00 | 104,367,763.02 | 175,637,763.02 | 13,709,556.49 | ||
| Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. | 410,740,000.00 | 1.00 | 410,740,001.00 | 410,740,000.00 | ||
| Shenzhen Nanshan Power Gas Turbine Engineering Technology (Shenzhen) Co., Ltd. | 6,000,000.00 | 18,460,360.00 | 24,460,360.00 | |||
| Shenzhen Nanshan Power Environme | 55,300,000.00 | 14,891,704.81 | 70,191,704.81 | 20,552,688.77 |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 91
| Investees | Balance at the end of last year | Increased amount in the current period | Decreased amount in the current period | Ending balance | Provision for impairment in the current period | Ending balance of provision for impairment |
| ntal Protection (Shenzhen) Co., Ltd. | ||||||
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | 141,427,522.09 | 141,427,522.09 | ||||
| Total | 718,091,322.09 | 137,719,828.83 | 855,811,150.92 | 445,002,245.26 |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
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2. Investments in associates and joint ventures
| Investees | Balance at the end of last year | Ending balance of provision for impairment | Increase and decrease in the current period | Ending balance | Ending balance of provision for impairment | |||||||
| Additional investment | Reduced investment | Investment profit or loss recognized under the equity method | Adjustments to the other comprehensive income | Other changes in equity | Declaration of cash dividend or profits | Provision for impairment | Others | |||||
| 1. Associates | ||||||||||||
| Liaoyuan Environmental Protection | 79,082,076.44 | 6,966,316.30 | 1,214,550.00 | 84,833,842.74 | ||||||||
| Subtotal | 79,082,076.44 | 6,966,316.30 | 1,214,550.00 | 84,833,842.74 | ||||||||
| Total | 79,082,076.44 | 6,966,316.30 | 1,214,550.00 | 84,833,842.74 | ||||||||
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
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(IV) Operating revenue and operating costs
| Item | The current period amount | Amount in previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 264,690,176.35 | 357,865,804.80 | 331,675,472.61 | 454,500,441.17 |
| Other business | 126,959,772.74 | 5,823,727.52 | 91,408,429.32 | 63,394.30 |
| Total | 391,649,949.09 | 363,689,532.32 | 423,083,901.93 | 454,563,835.47 |
1. Break down by product or service type
| Item | The current period amount | Amount in previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Power production and sale | 391,340,842.07 | 363,617,073.55 | 422,521,038.95 | 454,563,835.47 |
| Others | 309,107.02 | 72,458.77 | 562,862.98 | |
| Total | 391,649,949.09 | 363,689,532.32 | 423,083,901.93 | 454,563,835.47 |
2. By region
| Item | The current period amount | Amount in previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Domestic | 391,649,949.09 | 363,689,532.32 | 423,083,901.93 | 454,563,835.47 |
| Total | 391,649,949.09 | 363,689,532.32 | 423,083,901.93 | 454,563,835.47 |
3. Revenue broken down by time of transfer of goods or services
| Item | The current period amount | Amount in previous period |
| Recognize revenue at a certain time point | 391,649,949.09 | 423,083,901.93 |
| Total | 391,649,949.09 | 423,083,901.93 |
(V) Investment income
| Item | The current period amount | Amount in previous period |
| Income from long-term equity investments accounted for equity method under the equity method | 6,966,316.30 | 6,208,396.44 |
| Investment income from financial assets held for trading during the holding period | 18,538,064.54 | 57,851,532.85 |
| Dividend income received from investments in equity instruments during the holding period | 340,206.13 | 453,587.35 |
| Dividends from long-term equity investments | 6,717,600.82 | 8,397,001.02 |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
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| Item | The current period amount | Amount in previous period |
| Total | 32,562,187.79 | 72,910,517.66 |
XV. Supplementary information(I) Statement of non-recurring gains and losses in the current period
| Item | Amount | Remark |
| Profits and losses on disposal of non-current assets, including write-offs of provision for asset impairment that has been made | 1,878,391.11 | |
| Government subsidies included in the current profits and losses, except for those that are closely related to the Company's normal business operations, comply with national policies and regulations, are enjoyed according to determined standards, and have a sustained impact on the Company's profits and losses | 44,431,212.00 | |
| Except for the effective hedging business related to the Company's normal operating business, profits and losses from changes in fair value of financial assets and financial liabilities held by non-financial enterprises and profits and losses arising from the disposal of financial assets and financial liabilities | 18,538,064.54 | |
| Fund occupation fees charged to non-financial enterprises included in the current profits and losses | ||
| Profits and losses from entrusting others to invest or manage assets | ||
| Profits and losses from external entrusted loans | ||
| Loss of assets due to force majeure, such as natural disasters | ||
| Reversal of provision for impairment of receivables individually tested for impairment | 1,235,154.68 | |
| The investment cost in subsidiaries, associates and joint ventures acquired by an enterprise is less than the gains from the fair value of the identifiable net assets of the investees that shall be enjoyed when acquiring the investment | ||
| Current net profit and loss of subsidiaries from the beginning of the period to the combination date arising from business combination under the common control | ||
| Profits and losses on exchange of non-monetary assets | ||
| Profits and losses of debt restructuring | ||
| One-time expenses incurred by the enterprise due to the fact that the relevant operating activities are no longer sustainable, such as expenses for relocating employees, etc. | ||
| One-time impact on current profits and losses due to adjustments in laws and regulations such as taxation and accounting, etc. | ||
| One-time confirmed share-based payments expenses due to cancellation or modification of equity incentive plan | ||
| For cash-settled share-based payments, profits and losses arising from fair value changes of employee compensation payable after the vesting date | ||
| Profits and losses from fair value changes of investment |
Shenzhen Nanshan Power Co., Ltd.2023Notes to the Financial statements
Notes to the Financial statements Page 95
| Item | Amount | Remark |
| properties that are subsequently measured by using the fair value model | ||
| Gains arising from transactions at significantly unfair transaction prices | ||
| Profit or loss arising from contingencies unrelated to the Company's normal business operations | ||
| Revenue from custody fees obtained from entrusted operations | ||
| Other non-operating revenue and expenses other than those mentioned above | 11,628,630.83 | |
| Other profit and loss items that meet the definition of non-recurring gains and losses | ||
| Subtotal | 77,711,453.16 | |
| Less: income tax impact | ||
| Changes in the amount of minority interests (after tax) | 2,763,648.15 | |
| Total | 74,947,805.01 |
(II) Return on equity and earnings per share
| Profit during the reporting period | Weighted average rate of return on net assets (%) | Earnings per share (RMB) | |
| Basic earnings per share | Diluted earnings per share | ||
| Net profit attributable to ordinary shareholders of the Company | 0.2854 | 0.0069 | 0.0069 |
| Net profit attributable to ordinary shareholders of the Company after deducting non-recurring gains and losses | -4.8578 | -0.1174 | -0.1174 |
Shenzhen Nanshan Power Co., Ltd.
(Official seal)
April 10, 2024