Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| Stock code: 000037, 200037 | Stock Abbreviation: Shenzhen Nanshan Power A, Shenzhen Nanshan Power B | Announcement No.: 2024-051 |
Shenzhen Nanshan Power Co., Ltd.The Semi-Annual Report 2024
August 23, 2024
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
Section I Important, contents and definitions
The Board of Directors, the Board of Supervisors, directors, supervisors andsenior officers of the Company guarantee that the contents of the semi-annualreport are true, accurate and complete, and do not contain false records,misleading statements or major omissions, and that they bear individual andjoint legal liabilities.Kong Guoliang (legal representative), Chen Yuhui (chief accountant), ZhangXiaoyin (Chief Financial Officer), and Lin Xiaojia (head of the accountingdepartment) (accounting officer) declare that the financial reports in this semi-annual report are true, accurate and complete.All directors attended the meeting of Board of Directors at which the semi-annual report was reviewed.The Company has planned not to distribute cash dividends, give away bonusshares, or increase share capital by capital reserves.Any forward-looking statements in this semi-annual report, including futureplans, do not constitute a material commitment of the Company to investors.Investors are kindly requested to pay attention to investment risks.The semi-annual report is prepared in Chinese and English respectively. Incase of any ambiguity between the two versions, the Chinese version shallprevail. Investors are advised to read the full text of this semi-annual reportcarefully.
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
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 ...... 9
Section IV Corporate governance ...... 24
Section V Environmental and social responsibilities ...... 26
Section VI Important matters ...... 28
Section VII Changes in shares and shareholders ...... 34
Section VIII Preferred shares ...... 40
Section IX Bonds ...... 41
Section X Financial report ...... 42
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
List of documents for inspectionI. Original of the 2024 semi-annual report bearing the signature of the Company's legalrepresentative.II. Financial statements signed and stamped by the Company's Legal Representative, ChiefAccountant, Chief Financial Officer and Head of the Finance Department (Accounting Officer).III. Originals of all the Company's documents and announcements that have been publiclydisclosed on the designated media during the reporting period.IV. Place of inspection: the Office of the Company's Board of Directors.
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
Interpretation
| Item | Refer to | Content |
| Company, the Company, Shenzhen Nanshan Power and listed company | Refer to | Shenzhen Nanshan Power Co., Ltd. |
| New Power Company | Refer to | Shenzhen New Power Industrial Co., Ltd. |
| Shenzhen Nanshan Power Zhongshan Company, Zhongshan Nanlang Power Plant | 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. |
| Nanshan Power Plant | Refer to | Shenzhen Nanshan Power Co., Ltd. Nanshan Power Plant |
| 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 | From January 1, 2024 to June 30, 2024 |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
Section II Company profile and key financial indicatorsI. Company profile
| Stock abbreviation | Shenzhen Nanshan Power A, Shenzhen Nanshan Power B | Stock code | 000037,200037 |
| Stock exchange | Shenzhen Stock Exchange | ||
| Name in Chinese | Shenzhen Nanshan Power Co., Ltd. | ||
| Chinese abbreviation of the Company (if any) | Shenzhen Nanshan Power | ||
| Name in English (if any) | Shenzhen Nanshan Power Co., Ltd. | ||
| Legal representative of the Company | Kong Guoliang | ||
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. Other information
1. Contact information of the Company
Whether the Company's registered address, office address, postal code, website, e-mail address, etc. have changed during thereporting period
□Applicable ?Not applicable
The Company's registered address, office address and postal code, website and e-mail address have not changed during thereporting period. For details, please refer to the 2023 Annual Report.
2. Place of information disclosure and provision
Whether the place of information disclosure and provision has changed during the reporting period
□Applicable ?Not applicable
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
The website of stock exchange and the name and URL of the media where the Company discloses its semi-annual report, and theplace of provision of the Company's semi-annual report have not changed during the reporting period. For details, please refer tothe 2023 Annual Report.
3. Other relevant information
Whether other relevant information has changed in the reporting period
□Applicable ?Not applicable
IV. Key accounting data and financial indicators
Whether the Company needs to retroactively adjust or restate the accounting data of previous years
□Yes ?No
| Reporting period | Same period last year | Changes YoY | |
| Operating revenue (RMB) | 187,904,264.71 | 271,268,185.05 | -30.73% |
| Net profit attributable to shareholders of listed companies (RMB) | -37,851,109.90 | -37,240,739.56 | -1.64% |
| Net profit attributable to shareholders of listed companies after deducting non-recurring profit or loss (RMB) | -44,760,057.08 | -54,877,330.63 | 18.44% |
| Net cash flows from operating activities (RMB) | -52,996,491.43 | -57,016,489.54 | 7.05% |
| Basic earnings per share (RMB/share) | -0.0628 | -0.0618 | -1.62% |
| Diluted earnings per share (RMB/share) | -0.0628 | -0.0618 | -1.62% |
| weighted average rate of return on net assets | -2.63% | -2.59% | -0.04pct |
| At the end of the reporting period | At the end of the previous year | Changes YoY | |
| Total assets (RMB) | 2,152,674,345.54 | 2,049,365,388.69 | 5.04% |
| Net assets attributable to shareholders of listed companies (RMB) | 1,422,924,430.50 | 1,459,288,691.94 | -2.49% |
V. Differences in accounting data under domestic and foreign accounting standards
1. Differences in net profit and net assets in financial reports disclosed in accordance with bothinternational and Chinese accounting standards
□Applicable ?Not applicable
There was no difference between net profit and net assets in the financial reports disclosed in accordance with both internationaland Chinese accounting standards during the reporting period of the Company.
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
2. Differences in net profit and net assets in financial reports disclosed in accordance with bothinternational and Chinese accounting standards
□Applicable ?Not applicable
There was no difference between net profit and net assets in the financial reports disclosed in accordance with both internationaland Chinese accounting standards during the reporting period of the Company.VI. Non-recurring profit or loss items and amounts?Applicable □Not applicable
Unit: RMB
| Item | Amount | Remark |
| Profit or loss on disposal of non-current assets (including write-off of provision for asset impairment) | -108,730.90 | Mainly due to the disposal profit or loss from fixed assets. |
| Government subsidies included in the current profit or loss (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 profit or loss) | 439,079.24 | Mainly due to the government subsidies related to income. |
| Profit or loss from changes in fair value of financial assets and liabilities held by non-financial enterprises and profit or loss from the disposal of financial assets and financial liabilities, except for effective hedging operations related to the Company's normal business operations | 6,510,401.50 | Mainly investment income obtained from financial assets held for trading. |
| Other non-operating revenue and expenses other than the above | 75,461.40 | Mainly due to housing demolition and resettlement subsidies. |
| Less: income tax impact | 0.00 | |
| Changes in the amount of minority interests (after tax) | 7,264.06 | |
| Total | 6,908,947.18 |
Details of other profit or loss that meet the definition of non-recurring profit or loss:
□Applicable ?Not applicable
The Company had no specific profit or loss items that meet the definition of non-recurring profit or loss.Notes on the definition of the non-recurring profit or loss items listed in the "Interpretive Announcement No. 1 on InformationDisclosure of Companies Issuing Securities to the Public - Non-recurring Profit or Loss" as recurring profit or loss items
□Applicable ?Not applicable
The Company had no circumstances of definition of the non-recurring profit or loss items listed in the "Interpretive AnnouncementNo. 1 on Information Disclosure of Companies Issuing Securities to the Public - Non-recurring Profit or Loss" as recurring profitor loss items.
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
Section III Management discussion and analysis
I. Main business engaged in by the Company during the reporting periodThe Company shall comply with the disclosure requirements for "power supply industry" as set out in "Self-Regulation andSupervision Guidelines No. 3 for Shenzhen Stock Exchange-Listed Companies - Industry Information Disclosure ".According to the data released by China Electricity Council, in 1H24, the national electricity consumption of the whole societywas 4.66 trillion kWh, with a YoY increase of 8.1%, and the growth rate of 3.1 percentage points higher than that of the sameperiod last year. In terms of industries, the electricity consumption of the primary industry in the first half of the year was 62.3billion KWH, accounting for 1.3% of the electricity consumption of the whole society, with a YoY increase of 8.8%; Theelectricity consumption of the secondary industry in the first half of the year was 3.07 trillion kWh, with a YoY increase of 6.9%;The electricity consumption of the tertiary industry in the first half of the year was 852.5 billion KWH, with a YoY increase of
11.7%; In the first half of the year, the domestic electricity consumption of urban and rural residents was 675.7 billion KWH, witha YoY increase of 9.0%. In the first half of the year, the industrial power generation above the designated size increased by 5.2%YoY, of which the solar power/hydropower/wind power/thermal power/nuclear power generation of power plants above thedesignated size increased by 27.1%/21.4%/6.9%/1.7%/0.1% YoY respectively. In the second quarter, due to a YoY increase inprecipitation and the low base in the same period last year, the hydropower generation in April/May/June increased by
21.0%/38.6%/44.5% YoY respectively. In the first half of the year, the total non-fossil energy power generation increased by
293.5 billion KWH YoY, accounting for 84.2% of the YoY increase in China's total electricity consumption during the sameperiod, highlighting the significant progress in the power industry's green and low-carbon transition.The Company's primary business includes power and heat supply for production and operation, and technical consulting andtechnical services related to power plants (stations). At the end of the reporting period, the Company's Nanshan Power Plant had atotal of 3 sets of 9E type gas-steam combined cycle generating units with a total installed capacity of 540,000 KW. The powerplant is located in the power load center area of Shenzhen and is the main peak shaving power supply plant in the region. It iscurrently in normal production and operation. Zhongshan Nanlang Power Plant received the Letter on Matters Regarding the UnitsShutdown of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. Nanlang Power Plant from Energy Bureau of GuangdongProvince on November 6, 2023 (YNDLH [2023] No. 672), in which Energy Bureau of Guangdong Province agreed to shut downtwo 180MW gas-fired cogeneration units of Zhongshan Nanlang Power Plant. At present, the two 9E gas-steam combined cyclepower generating units owned by Zhongshan Nanlang Power Plant have been shut down and withdrawn from dispatchingoperation, and the related assets of the power generating units have been in the public listing and transfer process. During thereporting period, the Company conscientiously implemented the relevant requirements of the competent government departmentsat all levels on energy and power security and supply, took effective measures, and made every effort to ensure the safety andreliability of power production, providing a strong power guarantee for economic and social development. The Company'ssubsidiary Nanshan Power Plant has completed a total of 222,223,000 kWh of on-grid energy and 284,312,000 kWh of settlementcontract energy; The power sales business of the Company's subsidiary Shenzhen Nanshan Power Environmental ProtectionCompany has contributed a total of 6,941,300 kWh of energy for agent users.During the reporting period, the Company insisted on combining market-oriented direction with optimizing industrial layout,combining work safety with innovative development, combining cost control with management efficiency improvement,combining problem-orientation with goal-orientation, taking deepening reform as a breakthrough point, stimulating its own vitalitywhile increasing pressure to forge ahead, and effectively promoting various tasks to achieve phased results. Firstly, alwaysmaintain strategic focus and unswervingly move forward in the direction of strategic transformation in the new energy industry
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
and energy storage. In 1H24, the Company focused on the strategic direction and completed the first phase of the Shenzhen NewEnergy Storage Industry Equity Fund with a contribution of RMB 50 million; additionally, the Company continued to promote theland acquisition and storage of Shenzhen Nanshan Power Zhongshan Company and the disposal of generating unit assets, deeplytapped its own resource endowment advantages, broke through many obstacles, actively coordinated and fully promoted thecooperation with the local government of Cuiheng New District, Zhongshan City, resulting in the implementation of the 300MW/600 MWh Independent Energy Storage Power Station Project (Phase I) in Cuiheng New District, Zhongshan City, with theestimated static investment of about RMB 303 million. This not only revitalized the line assets of Shenzhen Nanshan PowerZhongshan Company, but also expands the company's energy storage industry layout, supporting Zhongshan City to establish alow-carbon green demonstration park benchmark and build an energy storage industry ecosystem. Secondly, Shenzhen NanshanPower Engineering Company actively created an organizational operation mode adapting to the market-oriented mechanism,established a new energy business department, focused on the gas turbine and new energy related engineering service business,and successively signed relevant maintenance and test, technical consulting service contracts; Meanwhile, the training of technicalteams has been strengthened in a targeted manner, and the qualification certificate of the license for undertaking the installation,maintenance and testing of power facilities has been obtained, which provides a solid guarantee for meeting the managementrequirements of the "construction, operation, management and maintenance" platform in the field of new energy and energystorage and new business development. Thirdly, Shenzhen Nanshan Power Environmental Protection Company takes integratedenergy service as the transformation and development direction, comprehensively develops industrial and commercial energystorage, distributed photovoltaic, charging pile and other integrated energy service projects, and strives to create a new integratedenergy service business model. In the first half of the year, the construction of the Zhaochi energy storage project was completedand officially put into commercial operation in April 2024; moreover, Shenzhen Nanshan Power Environmental ProtectionCompany was successfully included in the List of Electricity Sales Companies in Guangdong Province in January 2024, andsigned power sales contracts with 4 clients. In the first half of the year, the total power of the agent users was 6,941,300 kWh,which added a new profit growth driver for the Company. Fourthly, Xiefu Company mobilized all levels to carry out the propertylease management service business of Shenzhen Energy Corporation. In the first half of the year, the overall rental rate of the realestate business reached 60%, and the market development ability, property management ability and profitability were greatlyimproved.During the reporting period, the Company actively advocated and deeply practiced the concept of fine management, optimizedmanagement effectiveness, and actively implemented cost reduction and efficiency improvement with innovative thinking andinitiative to ensure that various measures achieved actual results. Firstly, strive to maximize the benefits of capacity tariff.Thoroughly study the latest capacity tariff policy, fully tap the benefit potential under the capacity tariff model, and actively strivefor capacity tariff income. Secondly, scientifically coordinate gas-electricity matching. In the face of the contradiction between theuncertainty of unit clearing and the certainty of natural gas contract volume, as well as the challenge of single gas source mode, theCompany strengthened overall planning and coordination, adjusted the power marketing and fuel procurement strategies accordingto the dynamic changes in the market situation, scientifically, reasonably and flexibly coordinated the gas-electricity matching, andmade every effort to coordinate to avoid the penalty of high natural gas contract volume as much as possible, and greatly improvedthe marginal contribution of power business. Thirdly, tap the potential of economic operation in an all-round way. Through theimplementation of maintenance and technical transformation projects and in-depth technical research, the performance andoperation mode of unit equipment are continuously optimized, and the normalized management measures for the economicoperation of production equipment in terms of power saving, water saving and gas saving are continuously strengthened, so as toachieve the maximum cost reduction and efficiency increase, open source and water saving, and save production costs. Fourthly,vigorously carry out the construction of process standardization system. Actively build an internal process system framework,form 14 categories of main processes, 90 functional processes and 218 business operation processes, and complete thestandardization of core business processes to help the Company achieve standardized, process-oriented and refined management.
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
II. Core competitiveness analysisIn recent years, affected by the macroeconomic situation and common problems in the gas turbine power generation industry, theCompany's primary business is facing increasing difficulties and challenges. However, the basic core competitiveness formed bymore than 30 years of operation and development and the strong support of the Company's major shareholders, as well as theinnovative management measures taken by the Board of Directors and management team have laid the necessary foundation forthe Company's continued operations and pursuit of transformation and development. During the reporting period, the Companyclosely focused on the core 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 have fully promoted the Company'soverall development, further consolidating and enhancing the Company's core competitiveness.
1. Management culture of hard work and innovation. The Company has a group of management personnel with a sense ofinnovation and the spirit of hard work. By deepening human resource reform and building a performance-oriented appraisal andincentive mechanism, the Company advocates and creates a management culture of unity, hard work, innovation and progress. Atthe same time, the Company attaches great importance to and vigorously promotes the construction of institutional system,management system and compliance systems. It adheres to standardized management in a legal, scientific and rigorous, efficientand orderly manner. Through refined and standardized management orientation, a good foundation has been laid for the Companyto deeply 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 gas turbine powergeneration industry, the Company has attracted and trained a group of technical experts and professionals in the gas turbineindustry, and has accumulated rich experience in the construction and operational management of gas turbine power plants. Inorder to comply with the market trend of power market-oriented reform in the Guangdong Province, the Company has establisheda professional power marketing team to study power trading strategies, explore and build power marketing mathematical models.The accumulative rich experience in power marketing has laid a solid foundation for the Company to participate in theconstruction of new power market and integrate into the wave of power market reform. In addition, Shenzhen Nanshan PowerEngineering Company also provides professional services such as technical consultation, commissioning, and operation guaranteefor dozens of domestic and overseas gas turbine power stations; the Company has successively undertaken technical personneltraining services for dozens of power plants at home and abroad, and has become a well-known professional talent training base inthe 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 invention patents, utility model patents and softwarecopyrights, and jointly drafted and prepared 1 national standard. On December 23, 2021, the Company obtained the national high-tech enterprise certificate. This year, the Company is actively organizing the national high-tech enterprise review and identificationwork. In recent years, the Company has continued to increase R&D efforts to promote the Company to implement innovation-driven development, and the scientific research and innovation work has been unanimously affirmed by the society. During thereporting period, the Company applied for 2 invention patents and 5 utility model patents to the China National IntellectualProperty Administration, of which 1 utility model patent has been granted. The Company's total number of authorized patents hasreached 45 (including 5 invention patents) and 8 software copyrights, which has greatly enhanced the Company's brand image andindustrial competitiveness.
4. Rich experience in industrial exploration. The Company gives full play to its own advantages to accumulate experience in theconstruction and operation of new energy industries such as electrochemical energy storage, photovoltaic, and charging pile, andactively develop comprehensive energy business. Through the preliminary work of independent energy storage power stations andthe construction and operation of photovoltaic projects, the Company has accumulated certain experience in the preliminarypreparation, construction, commissioning, operation and maintenance of energy storage projects, and has trained a group of
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
professionals. The rich talent pool and technological advantages in the traditional power industry enable the Company to tap itspotential and have 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 subordinate power plants all use gas-fired power generation units,adopting natural gas as fuel, and the CO2 emission in the flue gas is about 42% of that of the coal-fired power plants, providingstrong support for the national "double carbon" (carbon peaking and carbon neutrality) construction, According to therequirements of the "2018 'Shenzhen Blue' Sustainable Action Plan" of the Shenzhen Municipal People's Government, theCompany has fully completed the "Shenzhen Blue" transformation of #3, #10 and #1 gas turbines of Nanshan Power Plant. Afterthe transformation, the nitrogen oxides emissions of each unit have been reduced to less than 15mg/m
, reaching the world's mostadvanced level. Nanshan Power Plant was also selected as the best power plant of the Top Plant Award by Power Magazine, themost authoritative magazine in the global power industry, founded in 1882.III. Primary business analysisOverviewPlease refer to the relevant contents of "I. Main businesses engaged in by the Company during the reporting period".Changes YoY in key financial data
Unit: RMB
| Reporting period | Same period last year | Changes YoY | Reasons for changes | |
| Operating revenue | 187,904,264.71 | 271,268,185.05 | -30.73% | Mainly because Shenzhen Nanshan Power Zhongshan Company no longer engaged in power production and sales business due to shutdown units and land acquisition and storage in the current period, resulting in a decrease in the operating revenue on a year-on-year basis. |
| Operating costs | 180,350,403.95 | 285,367,929.90 | -36.80% | Mainly because Shenzhen Nanshan Power Zhongshan Company no longer engaged in power production and sales business due to shutdown units and land acquisition and storage in the current period, resulting in a decrease in the operating costs on a year-on-year basis |
| Selling and distribution expenses | 1,609,144.89 | 897,707.82 | 79.25% | Mainly due to the Company's continued efforts to strengthen project development and vigorously expansion of its business in the field of integrated energy service, resulting in an increase in the selling and distribution expenses on a year-on-year basis |
| G&A expenses | 36,646,293.91 | 34,513,202.72 | 6.18% | |
| Financial expenses | 5,742,174.61 | 6,730,365.12 | -14.68% |
Mainly due to the Company'soptimization of the asset and liabilitystructure and continued reduction offinancing costs, resulting in a
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| decrease in the financial expenses on a year-on-year basis. | ||||
| Income tax expenses | 0.00 | 479.55 | -100.00% | The Company has not incurred income tax expenses in the current period. |
| R&D investment | 15,116,862.75 | 13,297,926.31 | 13.68% | Mainly due to the Company's increased investment in R&D projects, which resulted in a YoY increase in R&D expenses. |
| Net cash flows from operating activities | -52,996,491.43 | -57,016,489.54 | 7.05% | |
| Net cash flows from investing activities | -29,435,927.80 | 262,106,770.11 | -111.23% | Mainly due to the new investment in Shenzhen New Energy Storage Industry Equity Fund in the current period, the YoY increase in the trading financial products purchased with existing funds, and the YoY decrease in the net cash flows from investing activities. |
| Net cash flows from financing activities | 81,386,462.47 | -592,949,390.25 | 113.73% | Mainly due to the Company's optimization of its asset and liability structure, the cash paid for debt repayment decreased year-on-year during the current period, resulting in an increase in the net cash flows from financing activities on a year-on-year basis. |
| Net increase in cash equivalents | -1,008,351.65 | -387,622,035.71 | 99.74% | Mainly due to the Company's optimization of its asset and liability structure, resulting in a decrease in the cash paid for debt repayment in the current period on a year-on-year basis, and an increase in the net increase in cash and cash equivalents on a year-on-year basis. |
Major changes in the Company's profit composition or profit sources during the reporting period
□Applicable ?Not applicable
There were no major changes in the profit composition or profit source of the Company during the reporting period.Composition of operating revenue
Unit: RMB
| Reporting period | Same period last year | Changes YoY | |||
| Amount | Proportion to operating revenue | Amount | Proportion to operating revenue | ||
| Total operating revenue | 187,904,264.71 | 100% | 271,268,185.05 | 100% | -30.73% |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| By sector | |||||
| Power industry | 187,206,813.92 | 99.63% | 270,628,454.23 | 99.76% | -30.83% |
| Others | 697,450.79 | 0.37% | 639,730.82 | 0.24% | 9.02% |
| Total | 187,904,264.71 | 100.00% | 271,268,185.05 | 100.00% | -30.73% |
| By product | |||||
| Power production and sale | 182,701,860.97 | 97.23% | 260,794,861.20 | 96.14% | -29.94% |
| Integrated energy service | 18,756,095.68 | 9.98% | 19,368,926.99 | 7.14% | -3.16% |
| Others | 697,450.79 | 0.37% | 639,730.82 | 0.24% | 9.02% |
| Consolidation offset | -14,251,142.73 | -7.58% | -9,535,333.96 | -3.52% | -49.46% |
| Total | 187,904,264.71 | 100.00% | 271,268,185.05 | 100.00% | -30.73% |
| By region | |||||
| Domestic | 187,904,264.71 | 100.00% | 271,268,185.05 | 100.00% | -30.73% |
| Total | 187,904,264.71 | 100.00% | 271,268,185.05 | 100.00% | -30.73% |
Industries, products or regions that account for more than 10% of the Company's operating revenue or operating profit?Applicable □Not applicable
Unit: RMB
| operating revenue | operating costs | gross margin | Changes YoY in operating revenue | Changes YoY in operating costs | Changes YoY in gross margin | |
| By sector | ||||||
| Power industry | 187,206,813.92 | 180,267,125.57 | 3.71% | -30.83% | -36.81% | 9.12% |
| Others | 697,450.79 | 83,278.38 | 88.06% | 9.02% | -16.19% | 3.59% |
| Total | 187,904,264.71 | 180,350,403.95 | 4.02% | -30.73% | -36.80% | 9.22% |
| By product | ||||||
| Power production and sale | 182,701,860.97 | 181,148,653.86 | 0.85% | -29.94% | -35.59% | 8.70% |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| Integrated energy service | 18,756,095.68 | 11,858,462.90 | 36.78% | -3.16% | -11.58% | 6.02% |
| Others | 697,450.79 | 83,278.38 | 88.06% | 9.02% | -16.19% | 3.59% |
| Consolidation offset | -14,251,142.73 | -12,739,991.19 | -49.46% | -35.43% | ||
| Total | 187,904,264.71 | 180,350,403.95 | 4.02% | -30.73% | -36.80% | 9.22% |
| By region | ||||||
| Domestic | 187,904,264.71 | 180,350,403.95 | 4.02% | -30.73% | -36.80% | 9.22% |
| Total | 187,904,264.71 | 180,350,403.95 | 4.02% | -30.73% | -36.80% | 9.22% |
Under the circumstances that the calculation method of the Company's main business data is adjusted during the reporting period,the Company's main business data for the latest period is adjusted according to the calculation method at the end of the reportingperiod
□Applicable ?Not applicable
IV. Non-primary business analysis
?Applicable □Not applicable
Unit: RMB
| Amount | Ratio in total profit | Explanation of causes | Sustainability | |
| Investment income | 9,007,609.64 | -22.15% |
Mainly investment income anddividend income obtained fromfinancial assets held for trading,as well as investment incomeaccounted for under the equitymethod and recognized by joint-stock companies.
| Recognized investment income accounted for under the equity method is sustainable. | ||||
| Non-operating revenue | 75,461.40 | -0.19% | Mainly due to housing demolition and resettlement subsidies. | No |
| Non-operating expenses | 108,730.90 | -0.27% | Mainly due to the loss of fixed assets. | No |
V. Analysis of assets and liabilities
1. Major changes in asset composition
Unit: RMB
| At the end of the reporting period | At the end of last year | Increase or decrease in | Description of significant changes |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| Amount | Ratio of total assets | Amount | Ratio of total assets | proportion | ||
| Monetary funds | 312,526,567.91 | 14.52% | 316,188,782.49 | 15.43% | -0.91% | |
| Accounts receivable | 118,860,740.60 | 5.52% | 111,975,251.10 | 5.46% | 0.06% | |
| Contract assets | 0.00% | 88,000.00 | 0.00% | 0.00% | ||
| Inventories | 83,727,533.35 | 3.89% | 86,158,251.16 | 4.20% | -0.31% | |
| Investment properties | 1,581,288.22 | 0.07% | 1,664,566.60 | 0.08% | -0.01% | |
| Long-term equity investments | 91,619,964.42 | 4.26% | 90,001,176.04 | 4.39% | -0.13% | |
| Fixed assets | 572,547,386.78 | 26.60% | 571,482,734.35 | 27.89% | -1.29% | |
| Construction in progress | 2,488,051.21 | 0.12% | 3,448,855.10 | 0.17% | -0.05% | |
| Right-of-use assets | 8,334,145.33 | 0.39% | 2,266,946.42 | 0.11% | 0.28% | |
| Short-term borrowings | 470,944,226.88 | 21.88% | 341,237,886.72 | 16.65% | 5.23% | |
| Contract liabilities | 119,549.51 | 0.01% | 0.00 | 0.00% | 0.01% | |
| Long-term borrowings | 0.00% | 58,829,426.30 | 2.87% | -2.87% | ||
| Lease liabilities | 4,640,491.00 | 0.22% | 0.00 | 0.00% | 0.22% | |
| Financial assets held for trading | 273,000,000.00 | 12.68% | 226,000,000.00 | 11.03% | 1.65% | |
| Other current assets | 287,836,740.79 | 13.37% | 232,865,968.63 | 11.36% | 2.01% | |
| Other investments in equity instruments | 350,615,000.00 | 16.29% | 300,615,000.00 | 14.67% | 1.62% |
2. Main overseas assets
□Applicable ? Not applicable
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
3. Assets and liabilities measured at fair value
?Applicable □Not applicable
Unit: RMB
| Item | beginning balance | Profit or loss from changes in fair value of the current period | Cumulative fair value changes included in equity | Provision for impairment of the current period | Purchase amount of the current period | Sales amount the current period | Other changes | ending balance |
| Financial assets | ||||||||
| 1. Financial assets held for trading (excluding derivative financial assets) | 226,000,000.00 | 454,000,000.00 | 407,000,000.00 | 273,000,000.00 | ||||
| 2. Derivative financial assets | ||||||||
| 3. Other debt investments | ||||||||
| 4. Other investments in equity instruments | 300,615,000.00 | 50,000,000.00 | 350,615,000.00 | |||||
| Total | 526,615,000.00 | 504,000,000.00 | 407,000,000.00 | 623,615,000.00 | ||||
| Financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 | ||||
Other changes
Whether there are significant changes in the measurement attributes of the Company's main assets during the reporting period
□Yes ?No
4. Restrictions on asset rights as of the end of the reporting period
| Item | Ending balance (RMB) | Ending balance of previous year (RMB) |
| L/G deposit | 2,800,000.00 | 5,453,862.93 |
| Total | 2,800,000.00 | 5,453,862.93 |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
VI. 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 |
| 50,000,000.00 | 0.00 | 100.00% |
2. Major equity investments acquired during the reporting period
?Applicable □Not applicable
Unit: RMB
| Name of investee | Main business | Investment method | Investment amount | Shareholding ratio | Sources of funds | Partner | Investment period | Product type | Progress as of the balance sheet date | Expected earnings | Profit or loss of investment in the current period | Litigation involved or not | Date of disclosure (if any) | Disclosure index (if any) |
| Shenzhen New Energy Storage Industry Equity Fund Partnership (Limited Partnership) | Use private equity funds to engage in equity investments, investment management, asset management and other activities (operating activities can only be carried out after registering with the Asset Management Association of China) | Not available due to short establishment time | 100,000,000.00 | 1.54% | Self-owned funds | Shenzhen Capital Holdings Co., Ltd., Shenzhen Longhua Industrial Capital Investment Co., Ltd., etc. | The investment period of the Partnership is ten years, counting from the date when the initial capital contribution is received. | Fund | Invested 50,000,000.00 | Not applicable | 0.00 | No | October 18, 2023; February 23, 2024, March 19, 2024 | Announcement No.: 2023-039; 2024-012、014 |
| Total | -- | -- | 100,000,000.00 | -- | -- | -- | -- | -- | -- | -- | 0.00 | -- | -- | -- |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
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.VII. Sale of major assets and equity
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 shoul | Disclosure date | disclosure index |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| d be explained. | ||||||||||||||
| Zhongshan Cuiheng New District Management Committee | Shenzhen Nanshan Power Zhongshan Company has three state-owned land use right located in Hengmen Industrial Zone, Nanlang Street, Cuiheng New District, Zhongshan City | December 12, 2023 | 58,445.35 | 0 | This land acquisition and storage matter may revitalize 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. | 0.00% | It is based on the Asset Appraisal Report issued by Guangdong Zhixin Land and Real Estate Appraisal Co., Ltd. (YZXPBZ No. [2023] 1175) and determined after consultation between the two parties. | No | Non-related parties | No | Not applicable | Yes | November 8, December 15 and December 20, 2023; April 13, 2024 | Announcement No.: 2023-048, 052, 053; 2024-027。 |
2. Sale of major equity interests
□Applicable ? Not applicable
VIII. Analysis of major holding and shareholding companies
?Applicable □Not applicableInformation about major subsidiary and joint-stock companies that affect the Company's net profit by more than 10%
Unit: RMB 10,000
| Company name | Company type | Main business | registered capital | total assets | net assets | operating revenue | operating profit | net profit |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| Shenzhen New Power Industrial Co., Ltd. | subsidiary | Technology development for waste heat utilization (excluding restricted projects); electricity generation through waste heat utilization; electricity generation through gas turbines. | RMB 113.85 million | 6,695.70 | 1,265.69 | 9,925.56 | -1,966.26 | -1,966.26 |
| 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 | 26,036.67 | -54,137.67 | 1,103.35 | -938.03 | -938.03 |
| 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 | RMB 10 million | 6,989.12 | 3,133.96 | 1,837.39 | -419.43 | -419.43 |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
electricalequipment andgeneralequipment, etc.
Situation of acquiring and disposing subsidiary during the reporting period
□Applicable ? Not applicable
Notes to main holding and shareholding companies
IX. Structured entities controlled by the Company
□Applicable ? Not applicable
X. Risks faced by the Company and countermeasures
1. Primary business: Since 2024, affected by multiple factors, the annual medium- and long-term contract prices of the Company'sNanshan Power Plant have dropped significantly. At the same time, with the official commencement of the Guangdong Province'sspot power market, the 9E unit faces profitability difficulties in competing with more efficient and cost-effective units. As a result,the Company's main business continues to face severe operational difficulties. The Company will persist in enhancing theoperation and management of assets in stocks, proactively adapting to the demands and dynamics of the power market, andstriving to optimize the profitability of its primary business and overall operational efficiency. Simultaneously, the Company willprioritize integrated energy services, actively investigating diverse business models and opportunities to transition from atraditional power generation entity to a comprehensive energy service provider. These efforts aim to foster favorable conditions forthe Company's sustained operations and robust growth.
2. Safety management: Under the market-oriented power production model, power plants will face more flexible schedulingmethods and stricter assessment policies, which put forward higher requirements for the operation and maintenance of existingaging power generation equipment. The Company will continuously improve the maintenance and management level of equipmentby formulating scientific and reasonable maintenance and technical transformation plans, investing corresponding funds andtechnical forces, implementing primary responsibility for work safety, and ensuring the safe and stable operation of productionfacilities; Simultaneously, the Company will enhance training and emergency preparedness, ensuring the implementation of worksafety responsibilities across five key areas: responsibility of work safety, management, investment, training, and emergencyresponse. Doing so aims to prevent any human-induced work safety accidents within the Company's system while maintaining thesupporting role of the main peak-shaving power supply point.
3. Fuel procurement: The Company's natural gas procurement price mainly depends on changes in the international fuel marketand the sales price of the Company's existing suppliers. In 1H24, as the spot price of natural gas declined, the Company's naturalgas procurement cost decreased YoY. However, due to the breakdown or overhaul of transmission and distribution capacity ofsome natural gas transmission and distribution facilities, strong seasonal demand caused by rising temperatures and still existinggeopolitical influences, the spot price of natural gas began to rise from May. In addition, the Company's gas source pattern haschanged fundamentally from dual gas sources to single gas sources. The simplification of gas sources has had a negative impact onthe stability of gas supply, the flexibility of gas volume coordination and the economy of gas prices. At the same time, theoperation of electricity spot trading rules and the implementation of capacity price policies have put forward higher requirementsfor the stability and flexibility of natural gas supply. The Company will continue to optimize upstream cooperation relationships,coordinate gas supply work under a single gas source, and do its best to minimize natural gas procurement costs while ensuringgas demand for power production.
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
4. In terms of Land of Nanshan Power Plant: In June 2023, the Company learned about the Notice of Shenzhen Municipal Bureauof Planning and Natural Resources on the Issuance of the Shenzhen 2023 Urban Renewal and Land Preparation Plan on theofficial website of Shenzhen Municipal Bureau of Planning and Natural Resources, and according to the relevant content in itsschedule, the Shenzhen 2023 Urban Renewal and Land Preparation Plan still includes the land acquisition and storage of NanshanPower Plant, the Company's subsidiary, and related content. The Company will maintain close communication with relevantdepartments of Shenzhen, actively follow up on the implementation progress of relevant government plans, and work with legaladvisors to carefully study Land of Nanshan Power Plant, study and formulate response strategies and work plans, and make everyeffort to protect the listed company and all the legitimate rights and interests of shareholders.XI. Implementation of the action plan of "Double Improvement of Quality Return"Whether the company has disclosed the announcement of the action plan of "Double Improvement of Quality and Return".
□Yes ? No
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
Section IV Corporate governanceI. Relevant information of the annual general meeting and extraordinary general meetingheld during the reporting period
1. Information on the General Meeting during the reporting period
| Session | Type | Investor participation ratio | Convening date | Disclosure date | Resolution |
| The First Extraordinary General Meeting for 2024 | Extraordinary General Meeting | 38.31% | January 9, 2024 | January 9, 2024 | Deliberated and approved the Proposal on Revising the Articles of Association of Shenzhen Nanshan Power Co., Ltd., the Proposal on Revising the Rules of Procedure of the Board of Directors of Shenzhen Nanshan Power Co., Ltd., and the Proposal on Revising the Working System of Independent Directors of Shenzhen Nanshan Power Co., Ltd. |
| The Second Extraordinary General Meeting for 2024 | Extraordinary General Meeting | 38.32% | February 26, 2024 | February 26, 2024 | Deliberated and approved the Proposal on the Listing and Transfer of the Assets Related to the Generator Units and Heavy Oil Treatment Line of the Company's Held Subsidiary Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. |
| 2023 Annual General Meeting | Annual General Meeting | 38.34% | May 8, 2024 | May 8, 2024 | Deliberated and approved seven proposals, including the 2023 Work Report of the Board of Directors, the 2023 Work Report of the Board of Supervisors, the 2023 Annual Report and the summary. |
| The Third Extraordinary General Meeting for 2024 | Extraordinary General Meeting | 38.33% | June 20, 2024 | June 20, 2024 | Deliberated and approved four proposals, including the Proposal on the Change of Board of Directors and the Election of Non-Independent Directors of the Tenth Board of Directors, and the Proposal on the Change of Board of Directors and the Election of Independent Directors of the Tenth Board of Directors |
2. Preferred shareholders whose voting rights have been restored request the convening of anExtraordinary General Meeting of Shareholders
□Applicable ? Not applicable
II. Changes in the Company's directors, supervisors and senior officers?Applicable □Not applicable
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| Name | Position held | Type | Date | Reason |
| Chen Yedong | Director | Elected | June 20, 2024 | Election at expiration of term |
| Ning Jie | Independent director | Elected | June 20, 2024 | Election at expiration of term |
| Zhang Ming | Supervisor | Elected | June 20, 2024 | Election at expiration of term |
| Yu Haiyong | Supervisor | Elected | June 20, 2024 | Election at expiration of term |
| Sun Huirong | Director | Resignation upon expiration of term | June 20, 2024 | Change of term |
| Chen Zetong | Independent director | Resignation upon expiration of term | June 20, 2024 | Change of term |
| Li Caijun | Supervisor | Resignation upon expiration of term | June 20, 2024 | Change of term |
| Liao Junkai | Supervisor | Resignation upon expiration of term | June 20, 2024 | Change of term |
III. Profit distribution and conversion of capital reserves into share capital during thereporting period
□Applicable ? Not applicable
The Company has planned not to distribute cash dividends, bonus shares or convert capital reserves into share capital in the halfyear.IV. Implementation of the Company's equity incentive plans, employee stock ownershipplans or other employee incentive measures
□Applicable ? Not applicable
The Company has no equity incentive plan, employee stock ownership plan or other employee incentive measures and theirimplementation during the reporting period.
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
Section V Environmental and social responsibilities
I. Major environmentalprotection issuesWhether the listed company and its subsidiaries are key pollutant-discharging units announced by the environmental protectiondepartment?Yes □ No
1. Policies and industry standards related to environmental protection
The Company belongs to the thermal power generation industry under the national economic classification 4411, and is currentlyimplementing the Emission Standards of Air Pollutants for Thermal Power Plants GB-13223-2011. Meanwhile, its affiliate,Nanshan Power Plant, strictly controls nitrogen oxide emissions in accordance with the relevant requirements of the 2018"Shenzhen Blue" Sustainable Action Plan.
2. Administrative licenses for environmental protection
The Company's affiliate, Nanshan Power Plant, has obtained the pollutant discharge license issued by Nanshan AdministrationBureau of the Bureau of Ecology and Environment of Shenzhen City with the license No. 91440300764983799T001P.
3. Industry emission standards and specific information on the pollutant emissions involved in production and operating activities
| Name of the Company or subsidiary | Types of main pollutants and specific pollutants | Names of main pollutants and specific pollutants | Emission mode | Number of discharge outlets | Distribution of discharge outlets | Emission concentration/intensity | Pollutant emission standards | Total emissions | Total approved emissions | Excessive emission |
| Shenzhen Nanshan Power Co., Ltd. | Nitrogen oxides | Nitrogen oxides | Concentrated emission of boiler and chimney | 3 | Inside the Nanshan Power Plant | <15 mg/m? | "Shenzhen Blue" emission standard <15mg/m? | 20.97 tons | 704.25 tons | None |
4. Treatment of pollutants
Shenzhen Nanshan Power Co., Ltd. has 3 sets of 9E units with the DLN1.0+ low nitrogen combustion system of General ElectricCompany. During the reporting period, the Company strictly abided by the national environmental protection laws and regulations,and the pollutants discharged met the national discharge standards. There were no environmental pollution accidents, nor werethere any penalties imposed by relevant departments due to major environmental protection problems.
5. Emergency plan for environmental emergencies
The emergency plan for sudden environmental incidents has been filed with the Guangdong Provincial Environmental ProtectionDepartment and the corresponding municipal environmental protection bureau.
6. Information on investment in environmental governance and protection and payment of environmental protection tax
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
The Company attaches great importance to environmental protection and strengthens on-site management by carrying out specialtasks such as the investigation of potential environmental risks and standardized management of hazardous waste; in addition, theCompany continues to increase investment on the maintenance of environmental protection facilities and improves environmentalprotection infrastructure. All these initiatives have greatly improved the level of pollution prevention and control. The Companypays environmental protection tax in strict accordance with the Presidential Order No. 61 of the Environmental Protection TaxLaw of the People's Republic of China and other relevant laws and regulations.
7. Environmental self-monitoring plan
An environmental self-monitoring plan has been prepared and reviewed by the environmental protection department; themonitoring data was disclosed timely on the environmental protection department` s website.
8. Administrative penalties for environmental issues during the reporting period
None
9. Other environmental information that shall be disclosed
None
10. Measures taken to reduce its carbon emissions during the reporting period and their effects?Applicable □Not applicableDuring the reporting period, the Power Plant affiliated to the Company continuously improved the efficiency of units and reducedcarbon emissions by adopting technical transformation measures such as unit boiler flue gas monitoring system and gas turbine oilfume fan system.
11. Other environmental protection related information
None
12. Information on environmental accidents occurring in the listed company
NoneThe Company shall comply with the disclosure requirements for "power supply industry" as set out in "Self-Regulation andSupervision Guidelines No. 3 for Shenzhen Stock Exchange-Listed Companies - Industry Information Disclosure ".II. Social responsibilitiesIn 1H24, although the Company faced many challenges in production, operation and management, the Company had the courageto assume social responsibilities, actively ensured power supply when the cost and price of power generation were seriouslyinverted, and conscientiously performed its social responsibilities to the best of its ability. In terms of work safety, the Companyattached great importance to work safety by identifying the main disparities. We vigorously promoted the improvement ofemployees' safety responsibility awareness and safety skills, effectively enhanced their work initiative, and maintained the "FiveNos" goal of work safety. In terms of environmental protection, the Company strictly complied with national and localenvironmental protection regulations, and always adhered to the concept of clean power generation and circular economydevelopment. All environmental protection work was effectively implemented, with environmental protection emission meetingthe requirement and no environmental pollution accidents.
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
Section VI Important matters
I. Commitments made by the Company's actual controller, shareholders, related parties,acquirers, the Company and other related parties that have been fulfilled within thereporting period and those that have not been fulfilled within the time limit as of the end ofthe reporting period
□Applicable ? Not applicable
During the reporting period, there were no commitments that were made by the actual controllers, shareholders, related parties,acquirers, and other related parties of the Company to be fulfilled during the reporting period but failed to be fulfilled as of the endof the reporting period.II. Non-operating capital occupation of the listed company by controlling shareholders andother related parties
□Applicable ? Not applicable
There was no non-operational occupation of funds by the controlling shareholder or other related parties of the listed companyduring the reporting period.III. Illegal external guarantees
□Applicable ? Not applicable
The Company had no illegal external guarantees during the reporting period.IV. Appointment and dismissal of accounting firmsWhether the semi-annual report has been audited.
□Yes ? No
The Company's semi-annual report has not been audited.
V. Explanation of the Board of Directors and the Board of Supervisors on the "modifiedreport" of the accounting firm during the Reporting Period
□Applicable ? Not applicable
VI. Explanation of the Board of Directors on the "modified report" of the previous year
□Applicable ? Not applicable
VII. Bankruptcy and restructuring related matters
□Applicable ? Not applicable
The Company had no bankruptcy or reorganization related matters during the reporting period.VIII. Litigation
Major litigation and arbitration matters
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
□Applicable ? Not applicable
The Company had no major litigation or arbitration matters during the reporting period.Other litigation events?Applicable □Not applicable
| Basic information of litigation (arbitration) | Amount involved (RMB10,000) | Whether to form estimated liabilities | Proceedings of litigation (arbitration) | Results and influence of litigation (arbitration) trial | Execution of litigation (arbitration) judgment | Disclosure date | disclosure index |
| Other litigation that does not meet the disclosure standards for major litigation | 502.95 | No | In the stages of case filing and trial respectively | No significant impact | Not applicable | -- | Failure to meet the special disclosure standards |
IX. Penalties and rectification
□Applicable ?Not applicable
The Company had no penalties or rectifications during the reporting period.
X. Integrity status of the Company and its controlling shareholders and actual controller?Applicable □Not applicableDuring the reporting period, the Company and the its largest shareholder did not fail to fulfill the effective court judgments, or hadlarge amounts of debts that were not repaid at maturity, and were in good standing in terms of integrity. The company had nocontrolling shareholder or actual controller during the reporting period.XI. Major related transactions
1. Related transactions related to daily operations
?Applicable □Not applicable
| Related party | relationship | Type of related transactions | Details of related transactions | Pricing principles of related transactions | Price of related transactions | Amount of related transactions (RMB10,000) | Proportion in the amount of similar transactions | Approved trading quota (RMB 10,000) | Whether the approved limit is exceeded | Settlement method of related transactions | Available market price of similar transactions | Disclosure date | disclosure index |
| Shenzhen MTC Co., Ltd. | Related legal person | Provision of energy management | Energy management services | Fair value | Market price | 30.91 | 0.15% | 120 | No | Monthly settlement | Not applicable | April 12, 2024 | Announcement on the Estimated Daily |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| services to related persons | Related Transactions in 2024 (Announcement No.: 2024-025) | |
Artron Art(Group)Co.,Ltd.anditssubsidiaries
| Artron Art (Group) Co., Ltd. and its subsidiaries | Related legal person | Purchase of goods from related parties | Purchase of goods | Fair value | Market price | 0.94 | 0.00% | 20 | No | Single settlement | Not applicable | ||
| CASTD | Related legal person | Provision of technical services to related persons | Technical transformation service | Fair value | Market price | 5.88 | 0.03% | Not applicable | No | Single settlement | Not applicable | Not applicable | Not applicable |
| Total | -- | -- | 37.73 | -- | 140 | -- | -- | -- | -- | -- | |||
| Details of large-amount sales returns | None | ||||||||||||
| The actual performance during the reporting period (if any) if the total amount estimated by category of the daily related transactions expected to occur in the current period | 1. In 2024, it is estimated that the daily related transactions with Shenzhen MTC Co., Ltd. will be RMB 1.2 million, and the related transactions with Artron Art (Group) Co., Ltd. and its subsidiaries will be RMB 200,000. The total amount of the daily related transactions during the reporting period is within the scope of approval. 2. The Company's provision of technical transformation services for CASTD was not estimated at the beginning of 2024, and the total amount was small, which did not meet the special information disclosure standards. | ||||||||||||
| Reasons for large differences between transaction prices and market reference prices (if applicable) | Not applicable | ||||||||||||
2. Related transactions involving acquisition or sale of assets or equity
□Applicable ? Not applicable
The Company had no related transactions involving acquisition or sale of assets or equity during the reporting period.
3. Related transactions involving joint external investment
?Applicable □Not applicable
| Co-investors | relationship | Name of the investee | Main business of the investee | Registered capital of the investee | Total assets of the investee | Net assets of the investee (RMB | Net profit of the investee (RMB |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| (RMB 10,000) | 10,000) | 10,000) | |||||
| Shenzhen Capital Holdings Co., Ltd., Shenzhen Yuanzhi Energy Storage Private Equity Fund Management Co., Ltd., etc. | 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 activities (operating activities can only be carried out after registering with the Asset Management Association of China) | RMB 6.51 billion | 324,550.07 | 324,550.07 | -677.09 |
| Progress of major projects under construction of the investee (if any) | None | ||||||
4. Related credit and debt accounts
□Applicable ? Not applicable
The Company had no related credit and debt accounts during the reporting period.
5. Transactions with financial companies that have relationship with the Company
□Applicable ? Not applicable
There were no deposits, loans, credit or other financial business between the Company and financial companies with relationshipand related parties.
6. The transactions between financial companies controlled by the Company and related parties
□Applicable ?Not applicable
There were no deposits, loans, credit or other financial business between financial companies controlled by the Company andrelated parties.
7. Other major related transactions
□Applicable ?Not applicable
The Company had no other major related transactions during the reporting period.
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
XII. 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. Entrusted wealth management
□Applicable ?Not applicable
The Company had no entrusted wealth management during the reporting period.
4. Other major contracts
□Applicable ?Not applicable
The Company had no other significant contracts during the reporting period.XIII. Explanation of other major matters?Applicable □Not applicableNew energy storage industry equity fund matters: in February 2024, the Company jointly signed the Shenzhen New EnergyStorage Industry Equity Fund Partnership (Limited Partnership) Partnership Agreement, with 11 parties including ShenzhenCapital Holdings Co., Ltd., Shenzhen Yuanzhi Energy Storage Private Equity Fund Management Co., Ltd., and SHENZHENENERGY Corporation. In March 2024, the Company completed the first installment of the capital contribution (i.e. 50% of thesubscribed capital contribution) of the Energy Storage Fund, and has completed the registration procedures for the industrial andcommercial changes of the Energy Storage Fund on February 29, 2024, and has completed the procedures for the change ofinformation related to the private investment funds on March 14, 2024 in the Asset Management Association of China. (For details,please refer to the Announcement on the Progress of Investment in Shenzhen New Energy Storage Industry Equity Fund andRelated Transactions disclosed by the Company in the Securities Times and cninfo.com.cn, Announcement No.: 2024-012 and 014)In addition to the above matters, the Company's land of Nanshan Power Plant-related matters and the refundable items of the"Project Technical Transformation Benefit Fund" had no progress or change during the reporting period.
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
XIV. Major matters of the Company's subsidiaries?Applicable □Not applicable
1. Land acquisition and storage matters of Shenzhen Nanshan Power Zhongshan Company: on April 10, 2024, Shenzhen NanshanPower Zhongshan Company received the second payment of RMB 71,336,059 in the first phase of compensation. Up to now, atotal of RMB 175,336,059 has been received, accounting for 30.00% of the total compensation for land acquisition and storage.(For details, please refer to the Progress Announcement on Matters Related to Land Acquisition and Storage of the HeldSubsidiary Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. disclosed by the Company on the Securities Times andcninfo.com.cn, Announcement No.: 2024-027)
2. Matters related to listing and transfer of units of Shenzhen Nanshan Power Zhongshan Company: On February 6 and February26, 2024, the Company held the 23rd Extraordinary Meeting of the Ninth Board of Directors, the 12th Extraordinary Meeting ofthe Ninth Board of Supervisors and the 2024 2nd Extraordinary General Meeting respectively, at which it reviewed and approvedthe Proposal on Listing and Transfer of Assets Related to Generating Units and Heavy Oil Treatment Line of Shenzhen NanshanPower (Zhongshan) Power Co., Ltd., a held subsidiary of the Company, and agreed to the listing and transfer of two generatingunits and their auxiliary equipment, heavy oil treatment line equipment and spare parts of Shenzhen Nanshan Power ZhongshanCompany on the Shenzhen United Property and Equity Exchange; On May 31 and June 20, 2024, the Company held the 25thExtraordinary Meeting of the Ninth Board of Directors, the 14th Extraordinary Meeting of the Ninth Board of Supervisors and the2024 3rd Extraordinary General Meeting, at which it reviewed and approved the Proposal on Re-listing and Transfer of AssetsRelated to Generating Units and Heavy Oil Treatment Line of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd., a heldsubsidiary of the Company, and agreed to the re-listing and transfer of two sets of generating units and their auxiliary equipment,heavy oil treatment line equipment and spare parts of Shenzhen Nanshan Power Zhongshan Company on the Shenzhen UnitedProperty and Equity Exchange. So far, the assets related to the generating units are in the process of public listing and transfer.(For details, please refer to the relevant announcements disclosed by the Company on the Securities Times and cninfo.com.cn,with Announcement No.: 2024-008, 009, 010, 013, 032, 033, 035, 043)
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
Section VII Changes in shares and shareholders
I. 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% | |||||
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| 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
Progress of implementation in share repurchase
□Applicable ?Not applicable
Implementation progress of reducing and repurchasing shares through centralized bidding
□Applicable ?Not applicable
The impact of changes in shares on basic earnings per share and diluted earnings per share, net assets per share attributable to theCompany's ordinary shareholders, and other financial indicators in the most recent year and the most recent period
□Applicable ?Not applicable
Other information that the Company deems necessary or that securities regulators require to be disclosed
□Applicable ?Not applicable
2. Changes in shares with selling restrictions
□Applicable ?Not applicable
II. Issuance and listing of securities
□Applicable ?Not applicable
III. Number of the Company's shareholders and shareholding status
Unit: Share
| Total number of ordinary shareholders at the end of the reporting period | 59,801 | Total number of preferred shareholders whose voting right were restored at the end of the reporting period (if any) (see Note 8) | 0 | ||||
| Shareholding of ordinary shareholders or the top 10 ordinary shareholders holding more than 5% of the shares (excluding shares lent through refinancing) | |||||||
| Name | Nature of | Sharehold | Quantity of | Increases | Quantity | Number of | Pledge, marking |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| shareholder | ing ratio | ordinary shares held at the end of the reporting period | and decreases during the reporting period | of ordinary shares with restrictive conditions for sales | ordinary shares without restrictive conditions for sales | or freezing | ||
| Share status | Quantity | |||||||
| HONG KONG NAM HOI (INTERNATIONAL) LTD | Overseas legal person | 15.28% | 92,123,248 | 0 | 0 | 92,123,248 | Not applicable | 0 |
| Shenzhen Guangju Industrial Co., Ltd. | State-owned legal person | 12.22% | 73,666,824 | 0 | 0 | 73,666,824 | Not applicable | 0 |
| Shenzhen Energy Corporation | State-owned legal person | 10.80% | 65,106,130 | 0 | 0 | 65,106,130 | Not applicable | 0 |
| Zeng Ying | Domestic natural person | 1.19% | 7,159,600 | 0 | 0 | 7,159,600 | Not applicable | 0 |
| China Merchants Securities (Hong Kong) Co., Ltd. | Overseas legal person | 0.90% | 5,402,154 | 71,300 | 0 | 5,402,154 | Not applicable | 0 |
| BOCI SECURITIES LIMITED | Overseas legal person | 0.87% | 5,252,215 | -6,269,833 | 0 | 5,252,215 | Not applicable | 0 |
| GUOTAI JUNAN SECURITIES(HONG KONG) LIMITED | Overseas legal person | 0.70% | 4,190,882 | 2,035,000 | 0 | 4,190,882 | Not applicable | 0 |
| Haitong International Securities Company Limited-Account Client | Overseas legal person | 0.65% | 3,908,357 | 0 | 0 | 3,908,357 | Not applicable | 0 |
| Huang Yilong | Domestic natural person | 0.64% | 3,866,500 | 0 | 0 | 3,866,500 | Not applicable | 0 |
| Meiyi Investment Real Estate Co., Ltd. | Domestic non-state-owned legal | 0.59% | 3,579,300 | -1,643,900 | 0 | 3,579,300 | Not applicable | 0 |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| person | ||||
| Strategic investors or general legal persons becoming the top 10 ordinary shareholders due to placement of new shares (if any) (see Note 3) | None | |||
| Explanation of the above-mentioned shareholders' relationship or concerted actions | 1. Shenzhen Energy Corporation holds 100% equity in HONG KONG NAM HOI (INTERNATIONAL) LTD 2. The Company is unaware of whether the above-mentioned other public shareholders have any relationship or are persons acting in concert. | |||
| Explanation of the circumstances in which the above-mentioned shareholders involve entrusted voting right and abstention from voting right | None | |||
| Special explanation for the existence of repurchase accounts among the top 10 shareholders (if any) (see Note 11) | None | |||
| Shareholdings of the top 10 non-restricted ordinary shareholders (excluding shares lent through refinancing and locked shares of senior executives) | ||||
| Name | Ending number of ordinary shares without restrictive conditions for sales | 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 | Renminbi ordinary shares | 73,666,824 | |
| Shenzhen Energy Corporation | 65,106,130 | Renminbi ordinary shares | 65,106,130 | |
| Zeng Ying | 7,159,600 | Domestic listed foreign shares | 7,159,600 | |
| China Merchants Securities (Hong Kong) Co., Ltd. | 5,402,154 | Domestic listed foreign shares | 5,402,154 | |
| BOCI SECURITIES LIMITED | 5,252,215 | Domestic listed foreign shares | 5,252,215 | |
| GUOTAI JUNAN SECURITIES(HONG KONG) LIMITED | 4,190,882 | Domestic listed foreign shares | 4,190,882 | |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| Haitong International Securities Company Limited-Account Client | 3,908,357 | Domestic listed foreign shares | 3,908,357 |
| Huang Yilong | 3,866,500 | Renminbi ordinary shares | 3,866,500 |
| Meiyi Investment Real Estate Co., Ltd. | 3,579,300 | Renminbi ordinary shares | 3,579,300 |
| Description of association or concerted action among the top 10 ordinary shareholders without restrictive condition for sales and that between the top 10 ordinary shareholders without restrictive condition for sales and the top 10 ordinary shareholders | 1. Shenzhen Energy Corporation holds 100% equity in HONG KONG NAM HOI (INTERNATIONAL) LTD 2. The Company is unaware of whether the above-mentioned other public shareholders have any relationship or are persons acting in concert. | ||
| Description of the top 10 ordinary shareholders' participation in margin trading and securities lending business (if any) (see Note 4) | None | ||
Participation of shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10 shareholders ofunrestricted tradable shares in refinancing business and lending shares
□Applicable ? Not applicable
Changes of the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares compared with the previous perioddue to refinancing lending/repayment
□Applicable ? Not applicable
Whether the Company's top 10 ordinary shareholders and the top 10 ordinary shareholders without selling restrictions conductedagreed repurchase transactions during the reporting period
□Yes ?No
The the Company's top 10 ordinary shareholders and the top 10 ordinary shareholders without selling restrictions did not engage inany agreed repurchase transactions during the reporting period.IV. Changes in shareholding of directors, supervisors and senior officers
□Applicable ? Not applicable
There were no changes in the shareholdings of the Company's directors, supervisors and senior officers during the reporting period.For details, please refer to the 2023 Annual Report.V. Changes in the controlling shareholder or the actual controllerChanges in controlling shareholders during the reporting period
□Applicable ? Not applicable
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
The Company's controlling shareholder did not change during the reporting period.Changes in actual controller during the reporting period
□Applicable ? Not applicable
The Company's actual controller did not change during the reporting period.
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
Section VIII Preferred shares
□Applicable ?Not applicable
There were no preferred shares in the Company during the reporting period.
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
Section IX Bonds
□Applicable ?Not applicable
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
Section X Financial report
I. Auditor's reportWhether the semi-annual report has been audited.
□Yes ?No
The Company's semi-annual report has not been audited.II. Financial statementsThe unit in the notes to the financial statements is: RMB
1. Consolidated balance sheet
Prepared by: Shenzhen Nanshan Power Co., Ltd.
June 30, 2024
Unit: RMB
| Item | Ending balance | Beginning balance |
| Current assets: | ||
| Monetary funds | 312,526,567.91 | 316,188,782.49 |
| Balances with clearing companies | ||
| Loans to banks and other financial institutions | ||
| Financial assets held for trading | 273,000,000.00 | 226,000,000.00 |
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 118,860,740.60 | 111,975,251.10 |
| Receivables financing | ||
| Advances to suppliers | 836,450.53 | 26,869,175.59 |
| Premiums receivable | ||
| Reinsurance accounts receivable | ||
| Receivable reinsurance contract reserve |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| Other receivables | 19,558,020.33 | 19,233,117.52 |
| Including: interest receivable | ||
| Dividends receivable | ||
| Financial assets purchased under resale agreements | ||
| Inventories | 83,727,533.35 | 86,158,251.16 |
| Including: data resources | ||
| Contract assets | 88,000.00 | |
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 287,836,740.79 | 232,865,968.63 |
| Total current assets | 1,096,346,053.51 | 1,019,378,546.49 |
| Non-current assets: | ||
| Issuance of loans and advances | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 91,619,964.42 | 90,001,176.04 |
| Other investments in equity instruments | 350,615,000.00 | 300,615,000.00 |
| Other non-current financial assets | ||
| Investment properties | 1,581,288.22 | 1,664,566.60 |
| Fixed assets | 572,547,386.78 | 571,482,734.35 |
| Construction in progress | 2,488,051.21 | 3,448,855.10 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 8,334,145.33 | 2,266,946.42 |
| Intangible assets | 20,389,648.48 | 19,285,629.03 |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| Including: data resources | ||
| Development expenses | ||
| Including: data resources | ||
| Goodwill | ||
| Long-term deferred expenses | 6,680,865.39 | 3,891,832.93 |
| Deferred tax assets | 1,172,366.49 | 1,172,366.49 |
| Other non-current assets | 899,575.71 | 36,157,735.24 |
| Total non-current assets | 1,056,328,292.03 | 1,029,986,842.20 |
| Total assets | 2,152,674,345.54 | 2,049,365,388.69 |
| Current liabilities: | ||
| Short-term borrowings | 470,944,226.88 | 341,237,886.72 |
| Borrowing from the Central Bank | ||
| Borrowings from banks and other financial institutions | ||
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 13,429,401.56 | 4,342,166.50 |
| Advances from customers | ||
| Contract liabilities | 119,549.51 | |
| Financial assets sold under repurchase agreements | ||
| Customer bank deposits and due to banks and other financial institutions | ||
| Receivings from vicariously traded securities | ||
| Receivings from vicariously underwritten securities | ||
| Employee compensation payable | 4,568,860.87 | 46,238,982.57 |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| Taxes payable | 4,863,438.40 | 3,089,330.47 |
| Other payables | 15,699,302.91 | 13,973,447.42 |
| Including: interest payable | ||
| Dividends payable | ||
| Handling charges and commissions | ||
| Reinsurance accounts payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 31,604,800.29 | 3,926,326.45 |
| Other current liabilities | 175,425,195.71 | |
| Total current liabilities | 716,654,776.13 | 412,808,140.13 |
| Non-current liabilities: | ||
| Reserves for insurance contract | ||
| Long-term borrowings | 58,829,426.30 | |
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 4,640,491.00 | |
| Long-term payables | ||
| Long-term employee compensations payable | ||
| Estimated liabilities | 15,000,000.00 | 15,000,000.00 |
| Deferred income | 64,695,900.62 | 67,869,348.07 |
| Deferred tax liabilities | ||
| Other non-current liabilities | 45,112.54 | 104,045,112.54 |
| Total non-current liabilities | 84,381,504.16 | 245,743,886.91 |
| Total liabilities | 801,036,280.29 | 658,552,027.04 |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| Owners' equity: | ||
| Equity | 602,762,596.00 | 602,762,596.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual bonds | ||
| Capital reserve | 362,770,922.10 | 362,770,922.10 |
| Less: treasury shares | ||
| Other comprehensive income | -2,500,000.00 | -2,500,000.00 |
| Special reserves | 1,486,848.46 | |
| Surplus reserves | 332,908,397.60 | 332,908,397.60 |
| General risk reserves | ||
| Undistributed profits | 125,495,666.34 | 163,346,776.24 |
| Total equity attributable to the owners of the parent company | 1,422,924,430.50 | 1,459,288,691.94 |
| Minority interests | -71,286,365.25 | -68,475,330.29 |
| Total owners' equity | 1,351,638,065.25 | 1,390,813,361.65 |
| Total liabilities and owners' equity | 2,152,674,345.54 | 2,049,365,388.69 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the FinanceDepartment: Lin Xiaojia
2. Parent Company's Balance Sheet
Unit: RMB
| Item | Ending balance | Beginning balance |
| Current assets: | ||
| Monetary funds | 238,132,520.44 | 288,209,271.60 |
| Financial assets held for trading | 273,000,000.00 | 226,000,000.00 |
| Derivative financial assets | ||
| Notes receivable |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| Accounts receivable | 58,955,956.80 | 26,981,407.91 |
| Receivables financing | ||
| Advances to suppliers | 1,293,346.83 | 15,384,546.45 |
| Other receivables | 700,585,696.79 | 714,553,901.02 |
| Including: interest receivable | ||
| Dividends receivable | ||
| Inventories | 78,147,454.03 | 79,966,182.19 |
| Including: data resources | ||
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 232,604,238.82 | 225,282,791.79 |
| Total current assets | 1,582,719,213.71 | 1,576,378,100.96 |
| Non-current assets: | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 447,317,326.90 | 495,642,748.40 |
| Other investments in equity instruments | 210,615,000.00 | 160,615,000.00 |
| Other non-current financial assets | ||
| Investment properties | ||
| Fixed assets | 360,689,519.42 | 270,785,343.05 |
| Construction in progress | 1,418,051.21 | 2,267,334.95 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 8,334,145.33 | 2,266,946.42 |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| Intangible assets | 1,280,943.68 | 159,361.27 |
| Including: data resources | ||
| Development expenses | ||
| Including: data resources | ||
| Goodwill | ||
| Long-term deferred expenses | 6,680,865.39 | 699,249.25 |
| Deferred tax assets | ||
| Other non-current assets | 899,575.71 | 857,135.84 |
| Total non-current assets | 1,037,235,427.64 | 933,293,119.18 |
| Total assets | 2,619,954,641.35 | 2,509,671,220.14 |
| Current liabilities: | ||
| Short-term borrowings | 213,944,226.88 | 341,237,886.72 |
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | 257,000,000.00 | |
| Accounts payable | 8,698,409.13 | 896,652.87 |
| Advances from customers | ||
| Contract liabilities | ||
| Employee compensation payable | 1,131,878.33 | 7,012,680.38 |
| Taxes payable | 1,168,873.79 | 1,413,720.40 |
| Other payables | 193,504,567.31 | 203,625,916.75 |
| Including: interest payable | ||
| Dividends payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 31,604,800.29 | 3,926,326.45 |
| Other current liabilities |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| Total current liabilities | 707,052,755.73 | 558,113,183.57 |
| Non-current liabilities: | ||
| Long-term borrowings | 58,829,426.30 | |
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 4,640,491.00 | |
| Long-term payables | ||
| Long-term employee compensations payable | ||
| Estimated liabilities | ||
| Deferred income | 63,814,211.93 | 48,280,623.30 |
| Deferred tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 68,454,702.93 | 107,110,049.60 |
| Total liabilities | 775,507,458.66 | 665,223,233.17 |
| Owners' equity: | ||
| Equity | 602,762,596.00 | 602,762,596.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual bonds | ||
| Capital reserve | 289,963,039.70 | 289,963,039.70 |
| Less: treasury shares | ||
| Other comprehensive income | ||
| Special reserve | 1,486,848.46 | |
| Surplus reserve | 332,908,397.60 | 332,908,397.60 |
| Undistributed profits | 617,326,300.93 | 618,813,953.67 |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| Total owners' equity | 1,844,447,182.69 | 1,844,447,986.97 |
| Total liabilities and owners' equity | 2,619,954,641.35 | 2,509,671,220.14 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the FinanceDepartment: Lin Xiaojia
3. Consolidated Income Statement
Unit: RMB
| Item | 1H24 | 1H23 |
| I. Total operating revenue | 187,904,264.71 | 271,268,185.05 |
| Including: operating revenue | 187,904,264.71 | 271,268,185.05 |
| Interest income | ||
| Premiums earned | ||
| Handling charges and commission income | ||
| Ii. Total operating costs | 241,153,276.40 | 342,848,838.47 |
| Including: operating costs | 180,350,403.95 | 285,367,929.90 |
| Interest costs | ||
| Handling charges and commission expenses | ||
| Surrender value | ||
| Net amount of compensation payout | ||
| Net amount of insurance liability reserve withdrawn | ||
| Policy dividends | ||
| Reinsurance costs | ||
| Taxes and surcharges | 1,688,396.29 | 2,041,706.60 |
| Selling and distribution expenses | 1,609,144.89 | 897,707.82 |
| G&A expenses | 36,646,293.91 | 34,513,202.72 |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| R&D expenses | 15,116,862.75 | 13,297,926.31 |
| Financial expenses | 5,742,174.61 | 6,730,365.12 |
| Including: interest expenses | 7,949,322.98 | 9,747,951.03 |
| Interest income | -2,338,321.70 | -3,020,964.70 |
| Plus: other income | 3,612,526.69 | 4,065,271.26 |
| Investment income ("-" for losses) | 9,007,609.64 | 19,725,870.53 |
| Including: investment income from associates and joint ventures | 2,428,488.38 | 1,643,156.49 |
| Gains from derecognition of financial assets measured at amortized costs | ||
| Exchange gains ("-" for losses) | ||
| Net exposure hedging gains ("-" for losses) | ||
| Gains from fair value changes ("-" for losses) | ||
| Losses from credit impairment ("-" for losses) | ||
| Losses from assets impairment ("-" for losses) | ||
| Gains from disposal of assets ("-" for losses) | 111,895.22 | |
| III. Operating profit ("-" for losses) | -40,628,875.36 | -47,677,616.41 |
| Plus: non-operating revenue | 75,461.40 | 4,994,213.17 |
| Less: non-operating expenses | 108,730.90 | 6,208.32 |
| IV. Total profit ("-" for total losses) | -40,662,144.86 | -42,689,611.56 |
| Less: income tax expenses | 479.55 | |
| V. Net profit ("-" for net losses) | -40,662,144.86 | -42,690,091.11 |
| (I) Classification by business continuity | ||
| 1. Net profit from continued operation ("-" for net loss) | -40,662,144.86 | -42,690,091.11 |
| 2. Net profit from discontinued operations ("-" for net loss) |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| (II) Classification by ownership | ||
| 1. Net profit attributable to shareholders of the parent company ("-" for net loss) | -37,851,109.90 | -37,240,739.56 |
| 2. Minority interest income ("-" for net loss) | -2,811,034.96 | -5,449,351.55 |
| VI. Net after-tax amount of other comprehensive income | ||
| Net after-tax amount of other comprehensive income attributable to owners of parent company | ||
| (I) Other comprehensive income that cannot be reclassified into profit or loss | ||
| 1. Remeasurement of changes in defined benefit plans | ||
| 2. Other comprehensive income that cannot be transferred to profit or loss under the equity method | ||
| 3. Fair value changes of investments in other equity instruments | ||
| 4. Fair value changes of the enterprise's own credit risk | ||
| 5. Others | ||
| (II) Other comprehensive income that will be reclassified to profit or loss | ||
| 1. Other comprehensive income that can be transferred to profit or loss under the equity method | ||
| 2. Fair value changes of other debt investments | ||
| 3. Amount of financial assets reclassified and included in other comprehensive income | ||
| 4. Provision for credit impairment of other debt investments | ||
| 5. Cash flow hedging reserve | ||
| 6. Differences arising from foreign currency financial statements | ||
| 7. Others |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| Net after-tax amount of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | -40,662,144.86 | -42,690,091.11 |
| Total comprehensive income attributable to owners of the parent company | -37,851,109.90 | -37,240,739.56 |
| Total comprehensive income attributable to minority shareholders | -2,811,034.96 | -5,449,351.55 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share | -0.0628 | -0.0618 |
| (II) Diluted earnings per share | -0.0628 | -0.0618 |
In case of any business combination under the same control in the current period, the net profit realized by the combinee before thecombination was RMB0.00, and the net profit realized by the combinee in the previous period was RMB0.00.Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the FinanceDepartment: Lin Xiaojia
4. Parent company's income statement
Unit: RMB
| Item | 1H24 | 1H23 |
| I. Operating revenue | 140,040,524.58 | 167,763,232.36 |
| Less: operating costs | 118,685,219.63 | 167,385,274.90 |
| Taxes and surcharges | 1,101,670.24 | 797,742.96 |
| Selling and distribution expenses | 537,063.19 | 333,513.64 |
| G&A expenses | 26,326,867.76 | 13,560,282.42 |
| R&D expenses | 9,249,152.47 | 8,859,406.25 |
| Financial expenses | -3,091,965.12 | -15,313,487.00 |
| Including: interest expenses | 7,829,242.34 | 6,443,539.09 |
| Interest income | -11,090,119.70 | -22,272,424.92 |
| Plus: other income | 2,333,552.74 | 2,014,744.97 |
| Investment income ("-" for losses) | 8,979,547.61 | 17,708,671.86 |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| Including: investment income from associates and joint ventures | 2,400,426.35 | 1,308,357.00 |
| Income on termination of recognition of financial assets measured at amortized costs ("-" for losses) | ||
| Net exposure hedging gains ("-" for losses) | ||
| Gains from fair value changes ("-" for losses) | ||
| Losses from credit impairment ("-" for losses) | ||
| Losses from assets impairment ("-" for losses) | ||
| Gains from disposal of assets ("-" for losses) | -40,000.01 | |
| II. Operating profits ("-" for losses) | -1,454,383.24 | 11,823,916.01 |
| Plus: non-operating revenue | 75,461.40 | 847,884.24 |
| Less: non-operating expenses | 108,730.90 | 6,208.32 |
| III. Total profits ("-" for total losses) | -1,487,652.74 | 12,665,591.93 |
| Less: income tax expenses | 479.55 | |
| IV. Net profit ("-" for net loss) | -1,487,652.74 | 12,665,112.38 |
| (I) Net profit from continued operations ("-" for net loss) | -1,487,652.74 | 12,665,112.38 |
| (II) Net profit from discontinued operations ("-" for net loss) | ||
| V. Net of tax of other comprehensive income | ||
| (I) Other comprehensive income that cannot be reclassified into profit or loss | ||
| 1. Remeasurement of changes in defined benefit plans | ||
| 2. Other comprehensive income that cannot be transferred to profit or loss under the equity method | ||
| 3. Fair value changes of investments in other equity instruments |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| 4. Fair value changes of the enterprise's own credit risk | ||
| 5. Others | ||
| (II) Other comprehensive income that will be reclassified to profit or loss | ||
| 1. Other comprehensive income that can be transferred to profit or loss under the equity method | ||
| 2. Fair value changes of other debt investments | ||
| 3. Amount of financial assets reclassified and included in other comprehensive income | ||
| 4. Provision for credit impairment of other debt investments | ||
| 5. Cash flow hedging reserve | ||
| 6. Differences arising from foreign currency financial statements | ||
| 7. Others | ||
| VI. Total comprehensive income | -1,487,652.74 | 12,665,112.38 |
| VII. Earnings per share: | ||
| (I) Basic earnings per share | -0.0025 | 0.0210 |
| (II) Diluted earnings per share | -0.0025 | 0.0210 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the FinanceDepartment: Lin Xiaojia
5. Consolidated statement of cash flows
Unit: RMB
| Item | 1H24 | 1H23 |
| I. Cash flows from operating activities: | ||
| Cash received from sales of goods and rendering of services | 204,720,091.12 | 296,915,732.81 |
| Net increase in customer bank deposits and due to banks and other financial institutions |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| Net increase in borrowings from the Central Bank | ||
| Net increase in borrowings from banks and other financial institutions | ||
| Cash received from premiums from the original insurance contract | ||
| Net cash received from reinsurance business | ||
| Net increase in policyholder deposits and investments | ||
| Cash received from interest, handling charges and commissions | ||
| Net increase in borrowings from banks and other financial institutions | ||
| Net increase in funds from repurchase business | ||
| Net cash received from vicariously traded securities | ||
| Tax refunds received | ||
| Other cash received related to operating activities | 17,132,583.98 | 12,296,599.09 |
| Sub-total of cash inflows from operating activities | 221,852,675.10 | 309,212,331.90 |
| Cash paid for purchase of goods and acceptance of services | 149,321,071.54 | 280,708,443.46 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits with the Central Bank and interbank funds | ||
| Cash paid for compensation for the original insurance contract | ||
| Net increase in loans to banks and other financial institutions | ||
| Cash paid for interest, handling charges and commissions | ||
| Cash paid for policy dividends |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| Cash paid to and on behalf of employees | 90,936,937.95 | 54,829,117.40 |
| Taxes and fees paid | 13,324,028.30 | 12,312,023.45 |
| Payments of other cash related to operating activities | 21,267,128.74 | 18,379,237.13 |
| Sub-total of cash outflows from operating activities | 274,849,166.53 | 366,228,821.44 |
| Net cash flows from operating activities | -52,996,491.43 | -57,016,489.54 |
| II. Cash flows from investing activities: | ||
| Recovery of cash received from investment | 134,000,000.00 | 285,010,220.37 |
| Cash received from investment income | 3,998,821.38 | 29,300,616.97 |
| Net cash recovered from disposal of fixed assets, intangible assets and other long-term assets | 71,336,059.00 | 550,880.00 |
| Net cash received from disposal of subsidiaries and other business units | ||
| Other cash received relating to investing activities | ||
| Sub-total of cash inflows from investing activities | 209,334,880.38 | 314,861,717.34 |
| Cash paid for the acquisition and construction of fixed assets, intangible assets and other long-term assets | 7,770,808.18 | 2,754,947.23 |
| Cash paid for investments | 50,000,000.00 | |
| net increase in pledge loans | ||
| Net cash paid for acquisition of subsidiaries and other business units | ||
| Payments of other cash related to investing activities | 181,000,000.00 | 50,000,000.00 |
| Sub-total of cash outflows from investing activities | 238,770,808.18 | 52,754,947.23 |
| Net cash flows from investing activities | -29,435,927.80 | 262,106,770.11 |
| III. Cash flows from financing activities: | ||
| Cash received from absorption of |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| investments | ||
| Including: cash received by subsidiaries from absorption of minority shareholders' investments | ||
| Cash received from acquisition of borrowings | 312,026,209.56 | 265,878,587.77 |
| Other cash received related to financing activities | ||
| Sub-total of cash inflows from financing activities | 312,026,209.56 | 265,878,587.77 |
| Cash paid for debt repayment | 218,385,088.06 | 847,229,358.05 |
| Cash paid for distribution of dividends, profits or interest payments | 6,770,219.03 | 6,158,185.74 |
| Including: dividends and profits paid by subsidiaries to minority shareholders | ||
| Payments of other cash related to financing activities | 5,484,440.00 | 5,440,434.23 |
| Sub-total of cash outflows from financing activities | 230,639,747.09 | 858,827,978.02 |
| Net cash flows from financing activities | 81,386,462.47 | -592,949,390.25 |
| IV. Impact of fluctuation in exchange rate on cash and cash equivalents | 37,605.11 | 237,073.97 |
| V. Net increase in cash and cash equivalents | -1,008,351.65 | -387,622,035.71 |
| Plus: beginning balance of cash and cash equivalents | 310,734,919.56 | 648,021,672.06 |
| VI. Ending balance of cash and cash equivalents | 309,726,567.91 | 260,399,636.35 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the FinanceDepartment: Lin Xiaojia
6. Parent company's statement of cash flows
Unit: RMB
| Item | 1H24 | 1H23 |
| I. Cash flows from operating activities: | ||
| Cash received from sales of goods and | 174,377,280.01 | 238,785,052.21 |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| rendering of services | ||
| Tax refunds received | ||
| Other cash received related to operating activities | 153,330,653.50 | 56,464,858.58 |
| Sub-total of cash inflows from operating activities | 327,707,933.51 | 295,249,910.79 |
| Cash paid for purchase of goods and acceptance of services | 88,477,771.52 | 169,853,255.01 |
| Cash paid to and on behalf of employees | 40,489,337.93 | 33,292,463.79 |
| Taxes and fees paid | 9,522,902.24 | 4,813,280.65 |
| Payments of other cash related to operating activities | 50,400,653.94 | 129,718,913.30 |
| Sub-total of cash outflows from operating activities | 188,890,665.63 | 337,677,912.75 |
| Net cash flows from operating activities | 138,817,267.88 | -42,428,001.96 |
| II. Cash flows from investing activities: | ||
| Recovery of cash received from investment | 504,336,059.00 | 285,010,220.37 |
| Cash received from investment income | 3,998,821.38 | 27,618,217.79 |
| Net cash recovered from disposal of fixed assets, intangible assets and other long-term assets | ||
| Net cash received from disposal of subsidiaries and other business units | ||
| Other cash received relating to investing activities | ||
| Sub-total of cash inflows from investing activities | 508,334,880.38 | 312,628,438.16 |
| Cash paid for the acquisition and construction of fixed assets, intangible assets and other long-term assets | 893,442.13 | 2,608,372.23 |
| Cash paid for investments | 50,000,000.00 | |
| Net cash paid for acquisition of subsidiaries and other business units | ||
| Payments of other cash related to | 457,630,000.00 | 63,500,000.00 |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| investing activities | ||
| Sub-total of cash outflows from investing activities | 508,523,442.13 | 66,108,372.23 |
| Net cash flows from investing activities | -188,561.75 | 246,520,065.93 |
| III. Cash flows from financing activities: | ||
| Cash received from absorption of investments | ||
| Cash received from acquisition of borrowings | 57,413,251.22 | 265,878,587.77 |
| Other cash received related to financing activities | ||
| Sub-total of cash inflows from financing activities | 57,413,251.22 | 265,878,587.77 |
| Cash paid for debt repayment | 218,385,088.06 | 847,229,358.05 |
| Cash paid for distribution of dividends, profits or interest payments | 6,295,552.36 | 6,155,786.56 |
| Payments of other cash related to financing activities | 15,984,323.34 | 10,578,867.57 |
| Sub-total of cash outflows from financing activities | 240,664,963.76 | 863,964,012.18 |
| Net cash flows from financing activities | -183,251,712.54 | -598,085,424.41 |
| IV. Impact of fluctuation in exchange rate on cash and cash equivalents | 118.18 | 1,964.51 |
| V. Net increase in cash and cash equivalents | -44,622,888.23 | -393,991,395.93 |
| Plus: beginning balance of cash and cash equivalents | 282,755,408.67 | 625,228,950.87 |
| VI. Ending balance of cash and cash equivalents | 238,132,520.44 | 231,237,554.94 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the FinanceDepartment: Lin Xiaojia
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
7. Consolidated statements of changes in owners' equity
Current period
Unit: RMB
| Item | 1H24 | ||||||||||||||
| Owners' equity attributable to the parent company | Minority interests | Total owners' equity | |||||||||||||
| Equity | Other equity instruments | Capital reserve | Less: treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General risk reserve | Undistributed profits | Others | Subtotal | |||||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| I. Ending balance of the previous year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 163,346,776.24 | 1,459,288,691.94 | -68,475,330.29 | 1,390,813,361.65 | |||||||
| Plus: changes in accounting policies | |||||||||||||||
| Correction of prior period errors | |||||||||||||||
| Others | |||||||||||||||
| II. Beginning balance of the current year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 163,346,776.24 | 1,459,288,691.94 | -68,475,330.29 | 1,390,813,361.65 | |||||||
| III. Changes in the current period ("-" for decrease) | 1,486,848.46 | -37,851,109.90 | -36,364,261.44 | -2,811,034.96 | -39,175,296.40 | ||||||||||
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| (I) Total comprehensive income | -37,851,109.90 | -37,851,109.90 | -2,811,034.96 | -40,662,144.86 | |||||||||||
| (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 |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| 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 |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| (V) Special reserve | 1,486,848.46 | 1,486,848.46 | 1,486,848.46 | ||||||||||||
| 1. Withdrawal in the current period | 2,811,200.91 | 2,811,200.91 | 2,811,200.91 | ||||||||||||
| 2. Usage in the current period | 1,324,352.45 | 1,324,352.45 | 1,324,352.45 | ||||||||||||
| (VI) Others | |||||||||||||||
| IV. Ending balance in the current period | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 1,486,848.46 | 332,908,397.60 | 125,495,666.34 | 1,422,924,430.50 | -71,286,365.25 | 1,351,638,065.25 |
Previous year
Unit: RMB
| Item | 1H23 | ||||||||||||||
| Owners' equity attributable to the parent company | Minority interests | Total owners' equity | |||||||||||||
| Equity | Other equity instruments | Capital reserve | Less: treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General risk reserve | Undistributed profits | Others | Subtotal | |||||
| Preferred shares | Perpetual bonds | Others | |||||||||||||
| I. Ending balance of the previous year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 159,187,979.14 | 1,455,129,894.84 | -62,310,840.26 | 1,392,819,054.58 | |||||||
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| 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 ("-" for decrease) | 219,435.94 | -37,240,739.56 | -37,021,303.62 | -5,449,351.55 | -42,470,655.17 | ||||||||||
| (I) Total comprehensive income | -37,240,739.56 | -37,240,739.56 | -5,449,351.55 | -42,690,091.11 | |||||||||||
| (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 |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| 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 |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| 5. Other comprehensive income transferred to retained earnings | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserve | 219,435.94 | 219,435.94 | 219,435.94 | ||||||||||||
| 1. Withdrawal in the current period | 5,086,973.52 | 5,086,973.52 | 5,086,973.52 | ||||||||||||
| 2. Usage in the current period | 4,867,537.58 | 4,867,537.58 | 4,867,537.58 | ||||||||||||
| (VI) Others | |||||||||||||||
| IV. Ending balance in the current period | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 219,435.94 | 332,908,397.60 | 121,947,239.58 | 1,418,108,591.22 | -67,760,191.81 | 1,350,348,399.41 |
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
Current period
Unit: RMB
| Item | 1H24 | |||||||||
| Equity | Other equity instruments | Capital | Less: | Other | Special | Surplus | Undistribute | Others | Total owners' | |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| Preferred shares | Perpetual bonds | Others | reserve | treasury shares | comprehensive income | reserve | reserve | d profits | equity | |||
| I. Ending balance of the previous year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 618,813,953.67 | 1,844,447,986.97 | |||||||
| Plus: changes in accounting policies | ||||||||||||
| correction of prior period errors | ||||||||||||
| Others | ||||||||||||
| II. Beginning balance of the current year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 618,813,953.67 | 1,844,447,986.97 | |||||||
| III. Changes in the current period ("-" for decrease) | 1,486,848.46 | -1,487,652.74 | -804.28 | |||||||||
| (I) Total comprehensive income | -1,487,652.74 | -1,487,652.74 | ||||||||||
| (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 |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| (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 | 1,486,848.46 | 1,486,848.46 | ||||||||||
| 1. Withdrawal in the current period | 2,794,219.78 | 2,794,219.78 | ||||||||||
| 2. Usage in the current period | 1,307,371.3 | 1,307,371.32 |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| 2 | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Ending balance in the current period | 602,762,596.00 | 289,963,039.70 | 1,486,848.46 | 332,908,397.60 | 617,326,300.93 | 1,844,447,182.69 |
Amount last year
Unit: RMB
| Item | 1H23 | |||||||||||
| Equity | Other equity instruments | Capital reserve | Less: treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Undistributed profits | Others | Total owners' equity | |||
| Preferred shares | Perpetual bonds | Others | ||||||||||
| I. Ending balance of the previous year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 556,747,679.96 | 1,782,381,713.26 | |||||||
| Plus: changes in accounting policies | ||||||||||||
| correction of prior period errors | ||||||||||||
| Others | ||||||||||||
| II. Beginning balance of the current year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 556,747,679.96 | 1,782,381,713.26 | |||||||
| III. Changes in the current period ("-" for decrease) | 219,435.94 | 12,665,112.38 | 12,884,548.32 | |||||||||
| (I) Total comprehensive income | 12,665,112.38 | 12,665,112.38 | ||||||||||
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| (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 |
Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co., Ltd.
| 5. Other comprehensive income transferred to retained earnings | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserve | 219,435.94 | 219,435.94 | ||||||||||
| 1. Withdrawal in the current period | 3,810,328.32 | 3,810,328.32 | ||||||||||
| 2. Usage in the current period | 3,590,892.38 | 3,590,892.38 | ||||||||||
| (VI) Others | ||||||||||||
| IV. Ending balance in the current period | 602,762,596.00 | 289,963,039.70 | 219,435.94 | 332,908,397.60 | 569,412,792.34 | 1,795,266,261.58 |
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia
Notes to the Financial Statements Page 1
Shenzhen Nanshan Power Co., Ltd.Notes to the 2024 Semi-Annual 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 were approved for disclosure by the Board of Directors of the Companyon August 21, 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 |
Notes to the Financial Statements Page 2
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.
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 consolidated and parent company's financial status as of June 30, 2024, as well as theconsolidated and parent company's operating results and cash flows for the year ended June 30,2024.(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 reversed in the current period | The amount of individual provision for bad debts of accounts receivable recovered or reversed exceeds RMB 1 million |
| Write-off of significant accounts receivable | The write-off amount of individual accounts receivable exceeds RMB 1 million |
Notes to the Financial Statements Page 3
| Item | Materiality criterion |
| Significant 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 under
common controlFor a business combination under common control, the assets and liabilities acquired by thecombining party in a business combination are measured at the book value of the assets andliabilities of the combined party at the combination date (including goodwill resulting from 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 madeto its financial statements based on the book value of its assets and liabilities (including goodwillresulting from acquisition of the subsidiary by ultimate controller) in the ultimate controller'sfinancial statements.The subsidiary's owners' equity, current net profit or loss and current comprehensive incomebelonging to minority shareholders are presented under the item of owners' equity in the
Notes to the Financial Statements Page 4
consolidated 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.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 ratio
Notes to the Financial Statements Page 5
and goodwill is recognized as investment income in the period in which the loss of control occurs.Other comprehensive income related to equity investments in subsidiaries or other changes inowners' equity other than net profit or loss, other comprehensive income and profit distribution aretransferred to investment income in the current period upon loss of control, except for othercomprehensive income due to remeasurement of net liabilities under defined benefit plans orchanges in net assets by the investee.If the Company's shareholding ratio decreases due to other investors' capital increase in thesubsidiary and the Company loss of control, accounting treatment is carried out in accordance withthe above principles.
② Disposal of subsidiaries in stages
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 a 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 offsetthe 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 and
Notes to the Financial Statements Page 6
assumes 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. (14)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.(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 the
Notes to the Financial Statements Page 7
principal 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.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.
Notes to the Financial Statements Page 8
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 financialassets, according to whether or not it retains control over the financial asset, respectively asfollows:
1) if control over the financial assets is not retained, the financial assets are derecognized andthe rights and obligations arising from or retained in the transfer are recognized separately asassets or liabilities.
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.
Notes to the Financial Statements Page 9
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 meetsconditions for derecognition, the book value of the entire financial assets before the transfer isdivided between the derecognized part and the continued recognition part (in this case, theretained service assets are deemed to continue to be recognized as part of financial assets) areamortized according to their respective relative fair values on the transfer date , and the differencebetween the following 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 amountcorresponding to the derecognized part of the cumulative amount of fair value changes originallyincluded in other comprehensive income (the financial assets involved in the transfer are financialassets at fair value with changes included in other comprehensive income).If the transfer of financial assets does not satisfy the conditions for derecognition, the financialassets continue to be recognized and the consideration received is recognized as financialliabilities.
4. Conditions for derecognition of financial liabilities
If the current obligations for financial liabilities are fully or partially discharged, the financialliabilities, or a part thereof, are derecognized; if the Company enters into an agreement with acreditor to replace the existing financial liabilities by assuming new financial liabilities, and thecontractual terms of the new financial liabilities are substantially different from those of theexisting financial liabilities, the existing financial liabilities are derecognized and the newfinancial liabilities are recognized simultaneously.If all or part of the contractual terms of the existing financial liabilities are substantially modified,the existing financial liabilities or a part thereof are derecognized, and the modified financialliabilities are recognized as new financial liabilities.When financial liabilities are fully or partially derecognized, the difference between the bookvalue of the derecognized financial liabilities and the consideration paid (including non-cashassets transferred out or new financial liabilities assumed) is recognized in current profit or loss.If the Company repurchases part of financial liabilities, it allocates the overall book value of thefinancial liabilities based on the relative fair values of the continued recognition part andderecognized part on the repurchase date. The difference between the book value allocated to thederecognized part and the consideration paid (including non-cash assets transferred out or newfinancial liabilities assumed) is recognized in current profit or loss.
5. Methods for determining fair values of financial assets and financial liabilitiesFor financial instruments that have an active market, their fair values are determined based on thequoted price in the active market. For financial instruments that do not have active market, theirfair values are determined by valuation techniques. In valuing the fair value, the Company usesvaluation techniques that are applicable in the current circumstances and are supported bysufficient available data and other information, selects inputs that are consistent with the
Notes to the Financial Statements Page 10
characteristics 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 provision based on expectedcredit losses over the entire life of all notes receivable, contract assets, accounts receivable andlease receivables generated from daily operating activities such as sales of goods and provision ofservices that are regulated by the revenue standard; for notes receivable, receivables financing andother receivables classified as portfolio other than these, the Company calculates expected creditlosses by reference to historical credit loss experience, current conditions, and projections offuture economic conditions by using default risk exposures, and expected credit loss over the lifeof the instruments rate within the next 12 months or over the entire duration.In addition to the above-mentioned simplified measurement methods and various other receivablesand temporary payments other than purchased or originated credit loss, the Company evaluates onbalance sheet date whether credit risk of relevant financial instruments has increased significantlysince the initial recognition, measures its provision for losses and recognizes expected creditlosses and changes therein, respectively.
(1) Recognition criteria and methods for provision for provision for bad debts of accountsreceivable with individually insignificant amount but individual provision for bad debtsThe Company conducts separate impairment test on accounts receivable with significantindividual amounts, and conducts separate impairment test on financial assets that have not beenimpaired and includes them in financial assets portfolio with similar credit risk characteristics.Accounts receivable for which impairment losses are recognized in individual test are no longerincluded in the portfolio of accounts receivable with similar credit risk characteristics forimpairment testing.
(2) Accounts receivable with individually insignificant amount but individual provision for baddebtsFor accounts receivable whose individual amounts are not significant but have the followingcharacteristics, such as: accounts receivable that are in dispute with the other party or involved inlitigation or arbitration; The debtor fails to be contacted and there is no third-party pursuer; Theaccounts receivable that have obvious signs that the debtor is likely to be unable to fulfill itsrepayment obligations shall be subject to a separate impairment test. If any object evidenceproving the existence of impairment, impairment loss is recognized and provision for impairmentis made at the difference between present value of future cash flows and their book value.
(3) Determination basis and calculation method of accounts receivable whose expected creditlosses are calculated based on credit risk portfolioWhen sufficient evidence of expected credit losses cannot be assessed at a reasonable cost at theindividual instrument level, the Company divides notes receivable, accounts receivable, otherreceivables, and contract assets into portfolios based on credit risk characteristics by referring tohistorical credit loss experience, taking into account current conditions as well as judgments offuture economic conditions, and calculates expected credit losses on a portfolio basis.
| Name of portfolios | Basis for determining the portfolio |
| Portfolio I | Portfolio of bank acceptance bills |
Notes to the Financial Statements Page 11
| 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 ofinventory value have disappeared, leading to the net realizable values of inventories higher than itsbook value, the amount of write-down shall be reversed from the original provision for inventorydepreciation with the reversal being included in the current profit or loss.
4. Inventory system
The perpetual inventory system is adopted.
5. Amortization method for low-value consumables and packaging materials
(1) Low-value consumables are amortized at lump-sum method.
(2) Packaging materials are amortized at lump-sum method.
(XIII) Contract assets
Notes to the Financial Statements Page 12
If 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 "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 influenceCommon 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.
(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.
Notes to the Financial Statements Page 13
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 subsidiaries are accounted for under the costmethod. Except for the actual price paid for acquisition of investment or the cash dividends orprofits contained in the consideration which have been declared but not yet distributed, theCompany recognizes the investment income in the current period at the cash dividends or profitsdeclared by the investee.
(2) Long-term equity investments accounted for under the equity method
Long-term equity investments in associates and joint ventures are accounted for under the equitymethod. If the initial investment cost is in excess of the share of fair value of identifiable net assetsin the investee when the investment is made, the difference will not be adjusted to the initialinvestment cost of long-term equity investments; if the initial investment cost is in short of theshare of fair value of identifiable net assets in the investee when the investment is made, thedifference will be included in the current profit or loss.The Company should recognize the investment income and other comprehensive incomerespectively in accordance with its share of net profit or loss and other comprehensive incomerealized by the investees that it should enjoy or share, and adjust the book value of long-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.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.
Notes to the Financial Statements Page 14
If common control or significant influence on investees is lost due to the disposal of part equityinvestments or other reasons, the remaining equity after disposal shall be calculated in accordancewith recognition and measurement standards of financial instruments. The difference between itsfair value and book value at the date of loss of common control or significant influence isrecognized in the current profit or loss. For other comprehensive income recognized due to theoriginal equity investments accounted for under the equity method, it shall be accounted for on thesame basis as the investees' direct disposal of relevant assets or liabilities when the accounting forequity method is no longer adopted. The owners' equity recognized due to other changes inowners' equity of the investee other than net profit or loss, other comprehensive income and profitdistribution will all be transferred to the current profit or loss when accounted for under the equitymethod is terminated.If the Company loses right of control over investees due to the disposal of part of equityinvestments or increase in capital of the subsidiary by other investors, resulting in a decrease in theCompany's shareholding ratio, when preparing individual financial statements, if the 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.(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 over the service life understraight-line method at their cost less estimated net residual value and accumulated provision for
Notes to the Financial Statements Page 15
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 | 0-10 | 4.5-5 |
| House decoration | straight-line method | 10 | 0-5 | 9.5-10 |
| Machinery equipment (except for gas turbine generator unit) | straight-line method | 15-20 | 0-5 | 4.75-6.67 |
| Machinery equipment - gas turbine generator units | Workload method | 0-10 | ||
| means of transport | straight-line method | 5 | 0-5 | 19-20 |
| Electronic equipment | straight-line method | 5 | 0-5 | 19-20 |
| Other equipment | straight-line method | 5 | 0-5 | 19-20 |
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 beforeconstruction in progress reaches the working conditions for its intended use. For construction inprogress that has reached working conditions for its intended use but for which the completion ofsettlement has not been handled, it shall be transferred into fixed assets at the estimated valueaccording to the project budget, construction price, actual cost, etc. from the date when it reachesthe working conditions for its intended use. And the fixed assets shall be depreciated inaccordance with the Company’s policy on depreciation of fixed assets. Adjustment shall be made
Notes to the Financial Statements Page 16
to 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, which can be directly attributable to theacquisition or production of assets eligible for capitalization, it shall be capitalized and included inthe cost of relevant assets; Other borrowing costs are recognized as expenses based on the amountincurred when incurred and included in the current profit or loss.Assets eligible for capitalization refer to fixed assets, investment properties, inventories and otherassets which may reach their intended use or sale status only after long-time acquisition andconstruction or production activities.Capitalization of borrowing costs begins when the following conditions are met at the same time:
(1) asset expenditures having occurred. Asset expenditures include expenditures in the form ofcash payments, transfers of non-cash assets or interest-bearing debts for the acquisition,construction or production of assets that meet capitalization conditions;
(2) borrowing costs having been incurred;
(3) the purchase, construction or production activities necessary to bring the asset to its intendedusable or salable state having begun.
2. Period of capitalization of borrowing costs
The capitalization period refers to the period from the time point at which capitalization ofborrowing costs commences to the time point at which capitalization ceases, excluding the periodduring which capitalization of borrowing costs is suspended.When the acquisition, construction or production of assets that meet the capitalization conditionsreaches the intended usable or salable state, the capitalization of borrowing costs ceases.When part of the projects in the acquisition, construction or production of assets that meet thecapitalization conditions are completed and can be used independently, the capitalization ofborrowing costs of this part of the assets ceases.
Notes to the Financial Statements Page 17
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 shall initially measure the intangible assets at cost when obtaining the samethe cost of outsourced intangible assets includes the purchase price, relevant taxes and otherexpenses directly attributable to bringing the assets to the intended use. If the purchase price ofintangible assets is deferred beyond normal credit conditions and is essentially financing in nature,the cost of intangible assets is determined based on the present value of the purchase price.The book value of intangible assets acquired in a debt restructuring for use by the debtor against adebt are determined based on the fair value of the claim waived and other costs directlyattributable to bringing the asset to its intended use, such as taxes, and the difference between thefair value of the claim waived and the book value of the intangible assets is recognized in currentprofit or loss.Provided that the exchange of non-monetary assets has commercial substance and the fair value ofboth the assets exchanged in and the assets exchanged out can be measured reliably, the intangibleassets exchanged in by exchange of non-monetary assets are recorded at their fair value based onthe fair value of the assets exchanged out, unless there is conclusive evidence that the fair value ofthe assets exchanged in is more reliable; For exchange of non-monetary assets that do not meet theabove prerequisites, the book value of the exchanged assets and related taxes payable arerecognized as the cost of the intangible assets exchanged, and profit or loss is derecognized.
(2) Subsequent measurement
Analyze and determine service life of intangible assets when acquiring them.For intangible assets with limited service life, they are amortized on straight-line method withinthe period that they bring economic benefits to the enterprise; if it is not foreseeable that intangibleassets will bring economic benefits to the enterprise, they are regarded as intangible assets withindefinite service life and are not amortized.
Notes to the Financial Statements Page 18
2. Estimated service life of intangible assets with limited service lifeFor 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
The expenditures of the Company's internal research and development projects are divided intoexpenditures in the research stage and expenditures in the development stage.Research stage: the stage of creative and planned investigation and research activities to obtainand understand new scientific or technical knowledge.Development stage: the stage in which research results or other knowledge are applied to a certainplan or design to produce new or substantially improved materials, devices, products, etc. beforecommercial production or use.Development stage expenditures meet specific criteria for capitalizationExpenditures during the development stage of internal research and development projects arerecognized as intangible assets when the following conditions are met:
(1) It is technically feasible to complete the intangible assets so that it can be used or sold;
(2) Have the intention to complete the intangible assets and use or sell it;
(3) The usefulness of methods for intangible assets to generate economic benefits shall be proved,including being able to prove that there is a potential market for the products manufactured byapplying the intangible assets or there is a potential market for the intangible assets themselves orthe intangible assets will be used internally;
(4) Have sufficient technical, financial and other resource support to complete the developmentof the intangible assets, and have the ability to use or sell the intangible assets;
(5) Expenditures attributable to the development stage of the intangible assets can be measuredreliably.(XX) Asset impairment
Notes to the Financial Statements Page 19
Long-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.
2. Amortization period of long-term deferred expenses
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 propertyThe Company's subsequent expenditure that do not meet the conditions for recognition of fixedassets, such as major repair costs, are recognized as long-term deferred expenses in the year theyoccur, and are subsequently amortized in installments during the benefit period.
| Item | Amortization period |
Notes to the Financial Statements Page 20
| 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 shall calculate and determine the corresponding amount of employee compensationfor social insurance premiums and housing provident fund paid for employees and trade unionfunds withdrawn in accordance with the prescribed accrual basis and accrual ratio during theaccounting period when employees provide services for 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
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.
Notes to the Financial Statements Page 21
2. Measurement methods for various types of estimated liabilities
The Company's estimated liabilities are initially measured at best estimate of the expendituresrequired to perform the related present obligations.
(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 ofexpenses required for the performance of relevant present obligations, and the book value of theestimated liabilities shall be reviewed on the balance sheet date.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) RevenueDisclosure of accounting policies adopted for revenue recognition and measurement according tobusiness type. The Company's revenue mainly comes from the following business types:
(1) Revenue from power production and sales; (2) Revenue from integrated energy services; (3)Other revenue.
1. General principles
If the Company fulfills its performance obligations under a contract, that is, when the customerobtains right of control of the relevant goods or services, revenue is recognized. Performanceobligations are contractual commitments in which the Company transfers clearly distinguishablegoods or services to the customer. Obtaining right of control of the relevant goods or servicesrefers to the ability to control the use of the goods or the provision of the services and to derivevirtually all of the economic benefits therefrom.The Company evaluates the contract on the contract commencement date, identifies each singleperformance obligation contained in the contract, and determines whether each individualperformance obligation is performed within a certain period or at a certain time point. If one of thefollowing conditions is met, it is performance obligations to be fulfilled within a certain period oftime, and the Company recognizes revenue over a period of time in accordance with theperformance progress: (1) the customer obtaining and consuming the economic benefits arisingfrom 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 cumulative
Notes to the Financial Statements Page 22
performance part completed so far during the entire contract period. Otherwise, the Companyrecognizes revenue at the time point at which the customer obtains the right of control of therelated goods or services.
2. Sales with a quality guarantee clause
For sales with a quality guarantee clause, if the quality guarantee provides a separate service to thecustomer in addition to the assurance that the goods or services sold meet standards specifiedherein, the quality guarantee constitutes an individual performance obligation. Otherwise, theCompany accounts for the quality assurance liability in accordance with the provisions of theAccounting Standards for Business Enterprises No. 13 - Contingencies.
3. Identification of the person with main liabilities and the agent
The Company identifies itself as the person with main liabilities or the agent when engaging intransactions based on whether it has the right of control of the goods or services beforetransferring them to the customer. If the Company has the right of control of the goods or servicesbefore transferring them to the customer, the Company identifies itself as the person with mainliabilities and recognizes revenue based on the total consideration received or receivable;otherwise, the Company identifies itself as the agent and recognizes revenue based on the amountof commissions or handling charges that may be received. This amount is determined according tothe net amount after deducting the price payable to other related parties from the totalconsideration received or receivable, or according to the specified commissions amount, ratio orother factors.
4. Principles
If the Company fulfills its performance obligations under a contract, that is, when the customerobtains right of control of the relevant goods or services, revenue is recognized. Obtaining right ofcontrol of the relevant goods or services refers to the ability to control the use of the goods or theprovision of the services and to derive virtually all of the economic benefits therefrom.
(1) Revenue from power production and sales
When the power is transmitted to the power grid company specified in the power sales contract,which means the power grid company has obtained the right of control of the power, the Companyshall recognize the reported sales revenue.
(2) Revenue from integrated energy services
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, as well as energy service revenue from industrial and commercialenergy storage and power sales. If multiple performance obligations are involved, they shall besplit reasonably, and the equipment sales shall be processed according to the sales of goodsbusiness. The provision of labor and services is generally dealt with according to the outputmethod based on the performance obligation fulfilled within a certain time period. Requirementsare 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
① The recognition and settlement of revenue from such business shall comply with theprovisions of the business contract signed by both parties. At the end of each settlement period, thenecessary documents stipulated in the Contract, such as the attendance sheet, service applicationform, etc. confirmed by both parties shall be provided as the proof of the cumulative revenue
Notes to the Financial Statements Page 23
recognition of the settlement period and materials for collecting service price.
② On each balance sheet date within the settlement period, revenue shall be tentativelyestimated based on the performance progress. When using the output method to determine theperformance progress, the progress is usually determined in combination with the actual measuredcompletion progress, assessment of achieved results, achieved milestones, progress of theschedule, completed or delivered products and other output indicators.
3) Energy service income from industrial and commercial energy storage and power salesFor the industrial and commercial energy storage service business, after the expiration of eachsettlement cycle, check and confirm the charging and discharging records of the energy storageproject with the customer, and sign the confirmation form of electricity charge settlement ofenergy storage power station, tentatively estimate the confirmation revenue of service fees, andmake formal settlement according to the actual electricity bill issued by the power supply bureauat the beginning of each month, adjust the tentatively estimated revenue, and confirm the energyservice revenue.For power sales service, the energy service revenue of the current month shall be confirmedaccording to the power sales revenue statement of Guangdong Power Exchange Co., Ltd.(XXVI) Contract costs
1. Costs of obtaining the contract
The incremental costs incurred by the Company to obtain the Contract (that is, costs which wouldnot have been incurred without obtaining the Contract) that may be recovered shall be recognizedas an asset and amortized on the same basis as the revenue recognition of goods or services relatedto the asset. In addition, the asset shall be included in the current profit or loss. If the amortizationperiod of the asset does not exceed one year, the asset shall be included in the current profit or losswhen incurred. Other expenses incurred by the Company to obtain the contract shall be includedin the current profit or loss when incurred, unless otherwise the expenses are borne by thecustomer.
2. Costs of performing the contract
The costs incurred by the Company to perform the Contract are recognized as an asset if they donot fall within the scope of other provisions specified in the Accounting Standards for BusinessEnterprises other than the revenue standards and meet all the following conditions: (1) when thecost is directly related to an existing or expected contract; (2) when the cost increases theCompany resources for fulfilling performance obligations in the future; (3) when the cost isexpected to be recovered. The above-mentioned asset shall be amortized on the same basis as therevenue recognition of goods or services related to the asset and included in the current profit orloss.
3. Impairment of contract costs
When recognizing impairment losses of assets related to contract costs, the Company shall firstrecognize impairment losses of other assets related to the Contract that are recognized inaccordance with other relevant accounting standards for business enterprises; then, if book 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
Notes to the Financial Statements Page 24
Government subsidies refer to the monetary and non-monetary assets obtained by the Companyfrom the government free of charge. Government subsidies are divided into asset-relatedgovernment subsidies and income-related government subsidies.Asset-related government subsidies refer to government subsidies obtained by the Company andused to purchase, construct or otherwise form long-term assets. Income-related governmentsubsidies refer to government subsidies other than asset-related government subsidies.
2. Recognition time point
If there is evidence that the Company can meet the relevant conditions stipulated in the financialsupport policy and is expected to receive financial support funds, government subsidies shall berecognized based on the amount receivable. Otherwise, government subsidies shall be recognizedwhen they are actually received.If government subsidies are monetary assets, they shall be measured at the amount received orreceivable. If government subsidies are non-monetary assets, they shall be measured at the fairvalue; If the fair value cannot be obtained reliably, government subsidies shall be measured at thenominal amount (RMB 1). Government subsidies measured at the nominal amount shall bedirectly included in the current profit or loss.
3. Accounting treatment
Asset-related government subsidies shall be used to offset the book value of the relevant assets orrecognized as the deferred income. Government subsidies which are recognized as the deferredincome shall be included in the current profit or loss in installments according to a reasonable andsystematic method within service life of the relevant assets (if the government subsidies arerelated to the daily activities of the Company, the subsidies shall be included in other income; ifthe government subsidies are not related to the daily activities of the Company, the subsidies shallbe included in non-operating revenue).income-related government subsidies that are used to compensate the Company for relevant costsor losses in subsequent periods shall be recognized as the deferred income and included in thecurrent profit or loss (if the government subsidies are related to the daily activities of 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.
Notes to the Financial Statements Page 25
Special circumstances in which deferred tax assets or deferred tax liabilities are not recognizedinclude: initial recognition of goodwill; other transactions or matters, except for businesscombination, that affect neither accounting profits nor taxable income (or deductible losses) whenincurred.When the Company is entitled to the legal right to settle on a net basis and intends to settle on anet basis or obtain assets and pay off liabilities at the same time, the current income tax assets andcurrent income tax liabilities shall be reported at the net amount after offsetting.When the Company is entitled to settle current income tax assets and current income tax liabilitieson a net basis, and deferred tax assets and deferred tax liabilities are related to income tax leviedby the same taxation department on the same taxpayer or different taxpayers, but in eachsignificant period when deferred tax assets and liabilities are reversed, if the taxpayer involvedintends to settle current income tax assets and liabilities on a net basis or obtain assets and pay offliabilities at the same time, deferred tax assets and deferred tax liabilities shall be reported at thenet amount after offsetting.(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 profitor loss as well as in the "special reserve" account. The currently accrual standard is based on
Notes to the Financial Statements Page 26
operating 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
There were no changes in significant accounting policies during the reporting period.
2. Changes in significant accounting estimates
According to the relevant provisions of the Accounting Standards for Business Enterprises No. 4 -Fixed Assets, the enterprise shall review the service life, estimated net residual value anddepreciation method of the fixed assets at least at the end of each year. By sorting out the fixedassets card information of each unit and combining with the actual use of the Company's fixedassets, in order to more fairly and appropriately reflect the value of the Company's fixed assets, itis proposed to adjust the net residual value rate of the fixed assets of house decoration, machineryequipment (except for gas turbine generator unit), means of transport, electronic equipment andother equipment, from the original 10% to 0-5%. The changes in accounting estimates wereimplemented from January 1, 2024.According to the Accounting Standards for Business Enterprises No. 28 - Accounting Estimates,Changes in Accounting Estimates and Correction of Errors, the changes in accounting estimatesadopt the prospective application method, so the changes in accounting estimates will not affectthe financial position and operating costs of Shenzhen Nanshan Power in previous periods.IV. Taxes(XXXII) 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 |
Notes to the Financial Statements Page 27
| Tax type | Tax basis | Tax rate |
| the taxable income. | ||
| Urban land use tax | For the actual occupied land area of industrial land in Nanshan District, Shenzhen, tax shall be paid at RMB 2-8/square meter. Calculated and paid at RMB 1/m2 for the actual land area occupied by industrial land in Zhongshan | |
| Foreign taxes | Foreign taxes shall be calculated according to the tax regulations of each overseas country and region. |
The tax subjects with different corporate income tax tax rates are as follows:
| Taxpayer name | Income tax rate |
| Shenzhen Nanshan Power Engineering Company | 15% |
(XXXIII) Main tax preferential treatment
1. Corporate income tax
Shenzhen Nanshan Power Engineering Company obtained a national high-tech enterprisecertificate No. GR202344200269, which is valid for 3 years. From 2023 to 2025, the Company'scorporate income tax enjoys a preferential income tax rate of 15% for high-tech enterprise.Note: During the reporting period, the national high-tech enterprise recognition of the Companywas in the review stage.
2. Value-added tax
| tax type | Company name | Relevant laws, regulations and policies | Approval authority | Approval No. | Preference enjoyed | Validity period |
| value-added tax | Shenzhen Nanshan Power Engineering Company | Measures for the Administration of Value-added Tax Exemption for Cross-border Taxable Activities in Replacement of Business Tax with Value-added tax | Shenzhen Qianhai State Taxation Administration | GJSWZJGG [2016] No. 29 | Value-added tax exemption for cross-border taxable activities |
V. Notes to the items of consolidated financial statements(I) Monetary funds
| Item | Ending balance | Ending balance of previous year |
| cash on hand | 30,227.42 | 30,329.83 |
Notes to the Financial Statements Page 28
| Item | Ending balance | Ending balance of previous year |
| bank deposits | 308,882,584.66 | 310,694,227.98 |
| Other monetary funds | 3,613,755.83 | 5,464,224.68 |
| Deposits with financial company | ||
| Total | 312,526,567.91 | 316,188,782.49 |
| Including: total amount deposited abroad | 6,144,424.14 | 6,105,051.40 |
The details of monetary funds that have restrictions on their use due to mortgage, pledge orfreezing, as well as those deposited overseas with restrictions on repatriation are as follows:
| Item | Ending balance | Ending balance of previous year |
| L/G deposit | 2,800,000.00 | 5,453,862.93 |
| Total | 2,800,000.00 | 5,453,862.93 |
In addition, as at June 30, 2024, the Company had no monetary funds subject to the restriction touse due to mortgage, pledge or freezing and with potential recovery risks.(II) Financial assets held for trading
| Item | Ending balance | Ending balance of previous year |
| Financial assets measured at fair value with changes included in the current profit or loss | 273,000,000.00 | 226,000,000.00 |
| Including: investments in debt instruments | ||
| investments in equity instruments | ||
| Derivative financial assets | ||
| Others (note) | 273,000,000.00 | 226,000,000.00 |
| Financial assets designated as measured at fair value and whose changes are recorded in profit or loss for the period | ||
| Including: investments in debt instruments | ||
| investments in equity instruments | ||
| Total | 273,000,000.00 | 226,000,000.00 |
Note: the balance at the end of the year is the structured deposits deposited by the Company withidle self-owned funds.
Notes to the Financial Statements Page 29
(III) Accounts receivable
1. Disclosure of accounts receivable on an aging basis
| Aging | Ending balance | Ending balance of previous year |
| Within 1 year | 74,943,040.66 | 51,764,528.59 |
| 1 to 2 years | 26,239,543.25 | 40,359,448.07 |
| 2 to 3 years | 19,305,121.11 | 21,478,238.86 |
| Over 3 years | 5,464,799.07 | 5,464,799.07 |
| Subtotal | 125,952,504.09 | 119,067,014.59 |
| Less: provision for bad debts | 7,091,763.49 | 7,091,763.49 |
| Total | 118,860,740.60 | 111,975,251.10 |
2. Accounts receivable are classified and disclosed according to the method of provisionfor bad debts
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | 5,464,799.07 | 4.34 | 5,464,799.07 | 100 | |
| Provision for bad debts on a credit risk portfolio basis | 120,487,705.02 | 95.66 | 1,626,964.42 | 1.35 | 118,860,740.60 |
| Total | 125,952,504.09 | 100.00 | 7,091,763.49 | 5.63 | 118,860,740.60 |
| Category | Ending balance of previous year | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | 5,464,799.07 | 4.59 | 5,464,799.07 | 100.00 | |
Notes to the Financial Statements Page 30
| Category | Ending balance of previous year | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| 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 |
(1) Important provision for bad debts on an individual basis
| Name | Ending balance of previous 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 portfolios | Ending balance | ||
| Accounts receivable | Provision for bad debts | Provision ratio (%) | |
| Portfolio II: receivables from power production and sales | 58,955,956.80 | ||
| Portfolio III: receivables from integrated energy service | 61,531,748.22 | 1,626,964.42 | 2.64 |
Notes to the Financial Statements Page 31
| Name of portfolios | Ending balance | ||
| Accounts receivable | Provision for bad debts | Provision ratio (%) | |
| Total | 120,487,705.02 | 1,626,964.42 | 1.35 |
3. Provision for bad debts accrued, reversed or recovered for the current period
| Category | Ending balance of previous 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 | 5,464,799.07 | 5,464,799.07 | ||||
| Provision for bad debts on a credit risk portfolio basis | 1,626,964.42 | 1,626,964.42 | ||||
| Total | 7,091,763.49 | 7,091,763.49 | ||||
4. Accounts receivable from actual write-off for the current period
| Item | Write-off amount |
| Accounts receivable from actual written-off | 0.00 |
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 |
| Shenzhen Power Supply Bureau Co., Ltd. | 58,955,956.80 | 58,955,956.80 | 46.81 | ||
| China Machinery Engineering Corporation | 56,419,011.30 | 56,419,011.30 | 44.79 | 1,626,964.42 | |
| Power China Hubei Engineering Co., Ltd. | 4,079,000.00 | 4,079,000.00 | 3.24 |
Notes to the Financial Statements Page 32
| 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 Petrochemical Oil Products Bonded Trading Co., Ltd. | 3,474,613.06 | 3,474,613.06 | 2.76 | 3,474,613.06 | |
| China Solibase Engineering Co., Ltd. | 1,137,145.51 | 1,137,145.51 | 0.90 | 1,137,145.51 | |
| Total | 124,065,726.67 | 124,065,726.67 | 98.50 | 6,238,722.99 |
(IV) Advances to suppliers
1. Advances to suppliers are listed based on aging
| Aging | Ending balance | Ending balance of previous year | ||
| Book balance | Ratio (%) | Book balance | Ratio (%) | |
| Within 1 year | 788,948.14 | 94.32 | 26,780,454.52 | 99.67 |
| 1 to 2 years | 34,000.00 | 4.06 | 72,700.00 | 0.27 |
| 2 to 3 years | ||||
| Over 3 years | 13,502.39 | 1.61 | 16,021.07 | 0.06 |
| Total | 836,450.53 | 100.00 | 26,869,175.59 | 100.00 |
Note: there were no advances to suppliers with an aging of more than one year and a significantamount at the end of the period.
2. Prepayments of the top five ending balances by prepayment objects
| Entity name | Book balance | Proportion to the prepayment balance (%) |
| Bescient Technologies (Shenzhen) Co., Ltd. | 209,000.00 | 24.99 |
| Guangzhou Dingyuan Information Technology Co., Ltd. | 99,245.28 | 11.87 |
| Shenzhen Tongchuang Energy Technology Co., Ltd. | 72,065.90 | 8.62 |
| Hangzhou Motanni Technology Co., Ltd. Shenzhen Branch | 65,094.34 | 7.78 |
| Guangzhou Zhixunda Information | 38,877.50 | 4.65 |
Notes to the Financial Statements Page 33
| Entity name | Book balance | Proportion to the prepayment balance (%) |
| Technology Co., Ltd. | ||
| Total | 484,283.02 | 57.90 |
(V) Other receivables
| Item | Ending balance | Ending balance of previous year |
| Interest receivable | ||
| Dividends receivable | ||
| Other receivables | 19,558,020.33 | 19,233,117.52 |
| Total | 19,558,020.33 | 19,233,117.52 |
1. Other receivables
(1) Disclosure based on aging
| Aging | Ending balance | Ending balance of previous year |
| Within 1 year | 1,946,243.42 | 1,617,984.30 |
| 1 to 2 years | 3,356.31 | |
| 2 to 3 years | ||
| Over 3 years | 48,002,435.80 | 48,002,435.80 |
| Subtotal | 49,948,679.22 | 49,623,776.41 |
| Less: provision for bad debts | 30,390,658.89 | 30,390,658.89 |
| Total | 19,558,020.33 | 19,233,117.52 |
(2) Disclosure by category
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual | 30,390,658.89 | 60.84 | 30,390,658.89 | 100.00 | |
Notes to the Financial Statements Page 34
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| basis | |||||
| Provision for bad debts on a credit risk portfolio basis | 19,558,020.33 | 39.16 | 19,558,020.33 | ||
| Total | 49,948,679.22 | 100.00 | 30,390,658.89 | 60.84 | 19,558,020.33 |
| Category | Ending balance of previous year | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | 30,390,658.89 | 61.24 | 30,390,658.89 | 100.00 | |
| Provision for bad debts on a credit risk portfolio basis | 19,233,117.52 | 38.76 | 19,233,117.52 | ||
| Total | 49,623,776.41 | 100.00 | 30,390,658.89 | 61.24 | 19,233,117.52 |
① Provision for bad debts on individual provision basis
| Name | Ending balance of previous 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 Factory Co., Ltd. | 3,560,000.00 | 3,560,000.00 | 3,560,000.00 | 3,560,000.00 | 100.00 | Not expected to be recovered |
| 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 |
Notes to the Financial Statements Page 35
| Name | Ending balance of previous year | Ending balance | ||||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | Provision ratio (%) | Reasons for provision | |
| Others | 813,990.40 | 813,990.40 | 813,990.40 | 813,990.40 | 100.00 | Not expected to be recovered |
| Total | 30,390,658.89 | 30,390,658.89 | 30,390,658.89 | 30,390,658.89 | 100.00 | |
② 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 | 3,233,068.55 | ||
| Portfolio VII: other receivables and temporary payments | 16,324,951.78 | ||
| Total | 19,558,020.33 | ||
(3) Disclosure by nature of payment
| Nature of payment | Ending book balance | Ending book balance of previous year |
| Guarantee and deposit | 3,110,692.41 | 2,869,769.32 |
| Receivable from employees | 12,961,807.69 | 12,415,545.61 |
| Current accounts with external units | 33,876,179.12 | 34,338,461.48 |
| Subtotal | 49,948,679.22 | 49,623,776.41 |
| Less: provision for bad debts | 30,390,658.89 | 30,390,658.89 |
| Total | 19,558,020.33 | 19,233,117.52 |
(4) Provision for bad debts
| Provision for bad | The first stage | The second stage | The third stage | Total |
Notes to the Financial Statements Page 36
| debts | 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 | 30,390,658.89 | 30,390,658.89 | ||
| Beginning balance in the current period | ||||
| - Transfer to the second stage | ||||
| - Transfer to the third stage | ||||
| - Reversal to the second stage | ||||
| - Reversal to the first stage | ||||
| Provision for the current period | ||||
| Reverse for the current period | ||||
| Charge-off for the current period | ||||
| Write-off for the current period | ||||
| Other changes | ||||
| Ending balance | 30,390,658.89 | 30,390,658.89 |
(5) Provision, reversal or recovery of provision for bad debts in the current period
| Category | Ending balance of previous year | Amount of changes for the current period | Ending balance | |||
| Accrual | Reverse or recovery | Charge-off or write-off | Others | |||
| Individual provision | 30,390,658.89 | 30,390,658.89 | ||||
| Total | 30,390,658.89 | 30,390,658.89 | ||||
Notes to the Financial Statements Page 37
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 |
| Total |
(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 | 15,637,433.45 | Within 1 year, 1-3 years | 31.31 | |
| Huiyang Kangtai Industrial Company | Current accounts | 14,311,626.70 | Over 3 years | 28.65 | 14,311,626.70 |
| Shandong Jinan Power Equipment Factory Co., Ltd. | Current accounts | 3,560,000.00 | Over 3 years | 7.13 | 3,560,000.00 |
| Shenzhen OCT Co., Ltd. Asset Management Branch | Deposit | 1,460,919.00 | Over 3 years | 2.92 | |
| Lai Weicheng | Current accounts | 1,408,866.89 | Over 3 years | 2.82 | 1,408,866.89 |
| Total | 36,378,846.04 | 72.83 | 19,280,493.59 |
(VI) Inventories
1. Inventories classification
Notes to the Financial Statements Page 38
| Item | Ending balance | Ending balance of previous 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 | 134,335,259.26 | 58,226,839.29 | 76,108,419.97 | 144,943,485.98 | 59,223,967.83 | 85,719,518.15 |
| Auxiliary materials and low-value consumables, etc. | 6,594,987.04 | 6,594,987.04 | 344,882.11 | 344,882.11 | ||
| Others | 1,024,126.34 | 1,024,126.34 | 93,850.90 | 93,850.90 | ||
| Total | 141,954,372.64 | 58,226,839.29 | 83,727,533.35 | 145,382,218.99 | 59,223,967.83 | 86,158,251.16 |
2. Provision for inventory depreciation and provision for impairment of contractperformance costs
| Item | Ending balance of previous 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 | 59,223,967.83 | 997,128.54 | 58,226,839.29 | |||
| Total | 59,223,967.83 | 997,128.54 | 58,226,839.29 | |||
(VII) Contract assets
1. Contract assets
| Item | Ending balance | Ending balance of previous year | ||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |
| Project quality | 88,000.00 | 88,000.00 | ||||
Notes to the Financial Statements Page 39
| guarantee | ||||||
| Total | 88,000.00 | 88,000.00 |
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 for bad debts on a credit risk portfolio basis | |||||
| Total | |||||
| Category | Ending balance of previous year | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | |||||
| Provision for bad debts on a credit risk portfolio basis | 88,000.00 | 100.00 | 88,000.00 | ||
| Total | 88,000.00 | 100.00 | 88,000.00 | ||
(VIII) Other current assets
| Item | Ending balance | Ending balance of previous year |
| Large-amount negotiable certificate of deposit and accrued interest | 231,461,407.75 | 225,278,591.79 |
| Land acquisition, storage, production and business suspension, employee compensation and relocation expenses, etc. (Note) | 43,889,714.09 | |
| Amount of input value-added tax to be deducted | 6,583,089.98 | 996,267.20 |
Notes to the Financial Statements Page 40
| Item | Ending balance | Ending balance of previous year |
| Prepaid income tax | 5,894,509.31 | 6,583,089.98 |
| Others | 8,019.66 | 8,019.66 |
| Total | 287,836,740.79 | 232,865,968.63 |
Note: according to the latest industrial plan of Cuiheng New District in Zhongshan, the CuihengNew District Management Committee of Zhongshan City has paid for the storage of three state-owned land use rights of Shenzhen Nanshan Power Zhongshan Company located in HengmenIndustrial Zone, Nanlang Street, Cuiheng New District, Zhongshan City. On December 12, 2023,Shenzhen Nanshan Power Zhongshan Company formally signed the Agreement on ReclaimingState-owned Land Use Right and the Relocation Compensation Agreement with Cuiheng NewDistrict Management Committee. On December 18, 2023, Shenzhen Nanshan Power ZhongshanCompany had received the first payment of RMB 104,000,000 from the first tranche ofcompensation, and on April 10, 2024, the company had received the second payment of RMB71,336,059.00 from the first tranche of compensation, both of which were included in othercurrent liabilities.According to the progress of land acquisition and storage of Shenzhen Nanshan Power ZhongshanCompany, at the end of the reporting period, the demolition loss, relocation expenses, employeecompensation and other expenses incurred by Shenzhen Nanshan Power Zhongshan Company toperform the land acquisition and storage matters are included to other current assets.
Notes to the Financial Statements Page 41
(IX) Long-term equity investments
| Investees | Ending balance of previous 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") | 5,167,333.30 | 28,062.03 | 5,195,395.33 | |||||||||
| Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. (hereinafter referred to as "Liaoyuan Environmental Protection") | 84,833,842.74 | 2,400,426.35 | 809,700.00 | 86,424,569.09 | ||||||||
| Total | 90,001,176.04 | 2,428,488.38 | 809,700.00 | 91,619,964.42 | ||||||||
Notes to the Financial Statements Page 42
(X) Other investments in equity instruments
1. Other investments in equity instruments
| Item | Ending balance in the current year | Ending balance of previous 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 New Energy Storage Industry Equity Fund Partnership (Limited Partnership) | 50,000,000.00 | 50,000,000.00 | ||||
| Shenzhen Petrochemical Oil Products Bonded Trading Co., Ltd. | 2,500,000.00 | -2,500,000.00 | 2,500,000.00 | -2,500,000.00 | ||
| Total | 353,115,000.00 | -2,500,000.00 | 350,615,000.00 | 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 included in other comprehensive income | Accumulated losses included in other comprehensive income | 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. | Plan to hold for the long term | |||||
| Shenzhen Yuanzhi Ruixin New Generation Information Technology Private | 68,719.76 | Plan to hold for the long term |
Notes to the Financial Statements Page 43
| Item | Dividend income recognized in the current period | Accumulated gains included in other comprehensive income | Accumulated losses included in other comprehensive income | 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 |
| Equity Investments Fund Partnership (Limited Partnership) | ||||||
| Jiangxi Nuclear Power Co., Ltd. | Plan to hold for the long term | |||||
| Shenzhen New Energy Storage Industry Equity Fund Partnership (Limited Partnership) | Plan to hold for the long term | |||||
| Shenzhen Petrochemical Oil Products Bonded Trading Co., Ltd. | 2,500,000.00 | Plan to hold for the long term | ||||
| Total | 68,719.76 | 2,500,000.00 |
(XI) Investment properties
1. Investment properties measured using cost model
| Item | Houses and buildings | Total |
| 1. Original book value | ||
| (1) Ending balance of previous 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) Ending balance of previous year | 8,043,448.36 | 8,043,448.36 |
| (2) Increased amount in the current period | 83,278.38 | 83,278.38 |
| (3) Reduced amount in the current period |
Notes to the Financial Statements Page 44
| Item | Houses and buildings | Total |
| (4) Ending balance | 8,126,726.74 | 8,126,726.74 |
| 3. Provision for impairment | ||
| (1) Ending balance of previous 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 | 1,581,288.22 | 1,581,288.22 |
| (2) Ending book value of previous year | 1,664,566.60 | 1,664,566.60 |
(XII) Fixed assets
1. Fixed assets and disposal of fixed assets
| Item | Ending balance | Ending balance of previous year |
| Fixed assets | 386,455,266.88 | 385,390,614.45 |
| Disposal of fixed assets (Note) | 186,092,119.90 | 186,092,119.90 |
| Total | 572,547,386.78 | 571,482,734.35 |
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 plan of Cuiheng New District in Zhongshan, the Cuiheng New District ManagementCommittee of Zhongshan City has paid for the storage of three state-owned land use rights ofShenzhen Nanshan Power Zhongshan Company located in Hengmen Industrial Zone, NanlangStreet, Cuiheng New District, Zhongshan City. On December 12, 2023, Shenzhen Nanshan PowerZhongshan Company formally signed the Agreement on Reclaiming State-owned Land Use Rightand the Relocation Compensation Agreement with Cuiheng New District Management Committee.Assets related to this matter, such as buildings, unit equipment and cogeneration projects underconstruction in progress were transferred to the fixed assets to be disposed.
Notes to the Financial Statements Page 45
2. Fixed assets
| Item | Houses and buildings | Machinery equipment | Means of transport | Electronic equipment and other equipment | Total |
| 1. Original book value | |||||
| (1) Ending balance of previous year | 294,887,415.19 | 1,642,954,777.93 | 6,305,570.65 | 44,463,854.92 | 1,988,611,618.69 |
| (2) Increased amount in the current period | 905,836.15 | 10,677,328.26 | 91,582.87 | 11,674,747.28 | |
| -Purchase | 91,582.87 | 91,582.87 | |||
| -Transfer construction in progress | 905,836.15 | 10,677,328.26 | 11,583,164.41 | ||
| -Others | |||||
| (3) Reduced amount in the current period | 1,074,210.00 | 13,099.00 | 1,087,309.00 | ||
| -Disposal or scrapping | 1,074,210.00 | 13,099.00 | 1,087,309.00 | ||
| -Others | |||||
| (4) Ending balance | 294,719,041.34 | 1,653,632,106.19 | 6,305,570.65 | 44,542,338.79 | 1,999,199,056.97 |
| 2. Accumulated depreciation | |||||
| (1) Ending balance of previous year | 204,203,072.71 | 1,239,630,165.53 | 4,715,994.15 | 35,616,644.51 | 1,484,165,876.90 |
Notes to the Financial Statements Page 46
| Item | Houses and buildings | Machinery equipment | Means of transport | Electronic equipment and other equipment | Total |
| (2) Increased amount in the current period | 2,276,790.50 | 6,657,712.64 | 563,987.25 | 1,002,873.56 | 10,501,363.95 |
| -Provision | 2,276,790.50 | 6,657,712.64 | 563,987.25 | 1,002,873.56 | 10,501,363.95 |
| -Others | |||||
| (3) Reduced amount in the current period | 966,789.00 | 11,789.10 | 978,578.10 | ||
| -Disposal or scrapping | 966,789.00 | 11,789.10 | 978,578.10 | ||
| -Others | |||||
| (4) Ending balance | 205,513,074.21 | 1,246,287,878.17 | 5,279,981.40 | 36,607,728.97 | 1,493,688,662.75 |
| 3. Provision for impairment | |||||
| (1) Ending balance of previous year | 17,852,047.84 | 100,972,179.24 | 53,176.48 | 177,723.78 | 119,055,127.34 |
| (2) Increased amount in the current period | |||||
| -Others | |||||
| (3) Reduced amount in the current period |
Notes to the Financial Statements Page 47
| Item | Houses and buildings | Machinery equipment | Means of transport | Electronic equipment and other equipment | Total |
| -Disposal or scrapping | |||||
| ---Others | |||||
| (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 | 71,353,919.29 | 306,372,048.78 | 972,412.77 | 7,756,886.04 | 386,455,266.88 |
| (2) Ending book value of previous year | 72,832,294.64 | 302,352,433.16 | 1,536,400.02 | 8,669,486.63 | 385,390,614.45 |
Notes to the Financial Statements Page 48
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 | |
| Chemical water treatment workshop | 232,960.00 | Formalities not completed | |
| Cafeteria of complex building | 199,239.82 | Formalities not completed | |
| Mail room at the main entrance | 47,264.13 | Formalities not completed | |
| Buildings (subject to quality, progress, investment and safety control) | 865,000.00 | Formalities not completed | |
| Layer addition of office building | 347,933.80 | Formalities not completed | |
| Total | 3,528,136.10 | ||
4. Disposal of fixed assets
| Item | Ending balance | Ending balance of previous year |
| Houses and buildings | 24,723,346.08 | 24,723,346.08 |
| Machinery equipment | 160,560,314.62 | 160,560,314.62 |
| Means of transport | 16,103.45 | 16,103.45 |
| Construction in progress - cogeneration projects | 792,355.75 | 792,355.75 |
| Total | 186,092,119.90 | 186,092,119.90 |
Note: For details, please see Note V (XII) 1. Fixed assets and disposal of fixed assets to the notesto the financial statements.
(XIII) Construction in progress
1. Construction in progress
| Item | Ending balance | Ending balance of previous year |
| Construction in progress | 2,488,051.21 | 3,448,855.10 |
| Total | 2,488,051.21 | 3,448,855.10 |
Notes to the Financial Statements Page 49
2. Construction in progress
| Item | Ending balance | Ending balance of previous year | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Oil to gas project | 9,441,286.39 | 9,441,286.39 | 9,441,286.39 | 9,441,286.39 | ||
| Technical transformation project | 4,060,504.04 | 1,605,000.00 | 2,455,504.04 | 4,080,877.62 | 1,605,000.00 | 2,475,877.62 |
| Others | 32,547.17 | 32,547.17 | 972,977.48 | 972,977.48 | ||
| Total | 13,534,337.60 | 11,046,286.39 | 2,488,051.21 | 14,495,141.49 | 11,046,286.39 | 3,448,855.10 |
Notes to the Financial Statements Page 50
3. Changes in the current period of important construction in progress
| Project name | Budget amount | Ending balance of previous 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 |
| Oil to gas project | 9,441,286.39 | 9,441,286.39 | Self-financed | |||||||||
| Total | 9,441,286.39 | 9,441,286.39 |
Notes to the Financial Statements Page 51
(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 | 8,696,499.48 | 8,696,499.48 |
| 3. Decreased amount in the current period | ||
| 4. Ending balance | 25,018,513.85 | 25,018,513.85 |
| II. Accumulated depreciation | ||
| 1. Beginning balance | 14,055,067.95 | 14,055,067.95 |
| 2. Increased amount in the current period | 2,629,300.57 | 2,629,300.57 |
| (1) Provision | 2,629,300.57 | 2,629,300.57 |
| 3. Decreased amount in the current period | ||
| 4. Ending balance | 16,684,368.52 | 16,684,368.52 |
| III. Provision for impairment | ||
| IV. Book value | ||
| 1. Ending book value | 8,334,145.33 | 8,334,145.33 |
| 2. Beginning book value | 2,266,946.42 | 2,266,946.42 |
Note: the right-of-use assets in the current period refer to the Company's operating lease of the 16-17th floors of Hantang Building Property for office use.(XV) Intangible assets
1. Intangible assets
| Item | Land use right | Patent | Software | Total |
| 1. Original book value | ||||
| (1) Ending balance of previous year | 60,813,994.76 | 138,625.07 | 3,858,558.72 | 64,811,178.55 |
| (2) Increased amount in the current period | 1,276,094.30 | 1,276,094.30 | ||
| -Purchase | 1,276,094.30 | 1,276,094.30 |
Notes to the Financial Statements Page 52
| Item | Land use right | Patent | Software | Total |
| (3) Reduced amount in the current period | ||||
| -Others | ||||
| (4) Ending balance | 60,813,994.76 | 138,625.07 | 5,134,653.02 | 66,087,272.85 |
| 2. Accumulated amortization | ||||
| (1) Ending balance of previous year | 41,785,841.59 | 49,165.10 | 3,690,542.83 | 45,525,549.52 |
| (2) Increased amount in the current period | 3,295.56 | 8,673.72 | 160,105.57 | 172,074.85 |
| -Provision | 3,295.56 | 8,673.72 | 160,105.57 | 172,074.85 |
| (3) Reduced amount in the current period | ||||
| —Disposal | ||||
| (4) Ending balance | 41,789,137.15 | 57,838.82 | 3,850,648.40 | 45,697,624.37 |
| 3. Provision for impairment | ||||
| (1) Ending balance of previous 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 | 19,024,857.61 | 80,786.25 | 1,284,004.62 | 20,389,648.48 |
| (2) Ending book value of previous year | 19,028,153.17 | 89,459.97 | 168,015.89 | 19,285,629.03 |
Notes to the Financial Statements Page 53
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 | Ending balance of previous year | Increased amount in the current period | Amortization amount in the current period | Other reductions | Ending balance |
| Renovation costs | 721,798.06 | 226,120.83 | 495,677.23 | ||
| Major repair expenses | 3,170,034.87 | 3,544,486.28 | 529,332.99 | 6,185,188.16 | |
| Total | 3,891,832.93 | 3,544,486.28 | 755,453.82 | 6,680,865.39 |
(XVII) Deferred tax assets and deferred tax liabilitiesDeferred tax assets not offset
| Item | Ending balance | Ending balance of previous year | ||
| Deductible temporary difference | 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 |
(XVIII) Other non-current assets
Notes to the Financial Statements Page 54
| Item | Ending balance | Ending balance of previous year |
| Relevant expenses for functional substitution of Nanshan Power Plant and land acquisition and storage payment of Zhongshan Company (Note) | 857,135.84 | 36,157,735.24 |
| Project quality guarantee | 42,439.87 | |
| Total | 899,575.71 | 36,157,735.24 |
Note: according to the progress of land acquisition and storage of Shenzhen Nanshan PowerZhongshan Company, at the end of the reporting period, the relevant expenses of land acquisitionand storage of Shenzhen Nanshan Power Zhongshan Company and the suspension and withdrawalof unit assets have been included to other current assets. See Note V. (VIII) to the notes to thefinancial statements.
(XIX) Assets with restricted ownership or use rights
| Item | Ending balance | Ending balance of previous year | ||||||
| Book balance | Book value | Restricted type | Restrictions | Book balance | Book value | Restricted type | Restrictions | |
| monetary funds | 2,800,000.00 | 2,800,000.00 | guarantee | Freeze | 5,453,862.93 | 5,453,862.93 | guarantee | Freeze |
| Total | 2,800,000.00 | 2,800,000.00 | 5,453,862.93 | 5,453,862.93 | ||||
(XX) Short-term borrowings
| Item | Ending balance | Ending balance of previous year |
| Credit loan | 400,773,375.35 | 270,933,506.37 |
| Pledge loan | 70,000,000.00 | 70,000,000.00 |
| Accrued interest on short-term borrowings | 170,851.53 | 304,380.35 |
| Total | 470,944,226.88 | 341,237,886.72 |
Note: the Company used its own patent rights pledge a loan of RMB 70 million from ShanghaiPudong Development Bank Shenzhen Branch.
(XXI) Accounts payable
1. Accounts payable
| Item | Ending balance | Ending balance of previous year |
Notes to the Financial Statements Page 55
| Item | Ending balance | Ending balance of previous year |
| Labor and service payments | 6,588,396.76 | 3,435,338.05 |
| Fuel payment | 5,434,676.78 | 10,175.58 |
| Electricity bill | 1,406,328.02 | 896,652.87 |
| Total | 13,429,401.56 | 4,342,166.50 |
At the end of the reporting period, the Company had no significant accounts payable with an agingof more than one year.
2. Top five accounts payable
| entity name | Book balance | Proportion to the accounts payable balance (%) |
| Shenzhen Gas Group Co., Ltd. | 5,427,996.78 | 40.42 |
| Hangzhou Xingyuan Installation Co., Ltd. | 3,028,840.50 | 22.55 |
| Yotai Digital Energy Technology (Shenzhen) Co., Ltd. | 2,614,030.23 | 19.46 |
| Shenzhen Power Supply Bureau Co., Ltd. | 1,406,328.02 | 10.47 |
| Dongguan Xinda Gas Co., Ltd. | 397,100.00 | 2.96 |
| Total | 12,874,295.53 | 95.86 |
(XXII) Contract liabilities
| Item | Ending balance | Ending balance of previous year |
| Advances from labor and services | 119,549.51 | |
| Total | 119,549.51 |
(XXIII) Employee compensation payable
1. Employee compensation payable
| Item | Ending balance of previous year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
Notes to the Financial Statements Page 56
| Item | Ending balance of previous year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| Short-term compensation | 14,000,126.57 | 41,888,525.56 | 51,319,791.26 | 4,568,860.87 |
| Post-employment benefits- defined contribution plans | 6,428,265.39 | 6,428,265.39 | ||
| Dismissal benefits (note) | 32,238,856.00 | 32,238,856.00 | ||
| Other benefits due within one year | ||||
| Total | 46,238,982.57 | 48,316,790.95 | 89,986,912.65 | 4,568,860.87 |
Note: For the employee compensation related to the land acquisition and storage of ZhongshanCompany, see Note V. (VIII) for explanation.
2. Short-term compensation
| Item | Ending balance of previous year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| (1) Salaries, bonuses, allowances and subsidies | 13,904,838.47 | 29,355,185.25 | 38,784,356.55 | 4,475,667.17 |
| (2) Employee welfare fees | 4,853,580.86 | 4,853,580.86 | ||
| (3) Social insurance premiums | 2,257,920.67 | 2,257,920.67 | ||
| Including: medical insurance premiums | 1,852,201.53 | 1,852,201.53 | ||
| Work injury insurance premium | 219,201.98 | 219,201.98 | ||
| Maternity insurance premium | 186,517.16 | 186,517.16 | ||
| (4) Housing provident fund | 4,699,196.44 | 4,699,196.44 | ||
| (5) Trade union funds and employee education expenses | 95,288.10 | 722,642.34 | 724,736.74 | 93,193.70 |
| (6) Short-term paid absence from work | ||||
| (7) Short-term profit sharing plan |
Notes to the Financial Statements Page 57
| Item | Ending balance of previous year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| (8) Others | ||||
| Total | 14,000,126.57 | 41,888,525.56 | 51,319,791.26 | 4,568,860.87 |
3. Defined contribution plans list
| Item | Ending balance of previous year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| basic endowment insurance | 5,285,998.55 | 5,285,998.55 | ||
| Unemployment insurance premiums | 317,219.04 | 317,219.04 | ||
| Enterprise annuity payment | 752,598.00 | 752,598.00 | ||
| Others | 72,449.80 | 72,449.80 | ||
| Total | 6,428,265.39 | 6,428,265.39 |
(XXIV) Taxes payable
| Tax items | Ending balance | Ending balance of previous year |
| Value-added tax | 2,856,221.11 | 2,282,514.44 |
| Property tax | 1,142,905.17 | |
| Land use tax | 456,129.42 | |
| Personal income tax | 370,828.18 | 620,879.50 |
| Stamp duty | 36,750.00 | 160,105.10 |
| Urban maintenance and construction tax | 352.64 | 15,063.61 |
| Education surcharge | 151.13 | 6,404.48 |
| Local education surcharge | 100.75 | 4,346.16 |
| Other taxes | 17.18 | |
| Total | 4,863,438.40 | 3,089,330.47 |
Notes to the Financial Statements Page 58
(XXV) Other payables
| Item | Ending balance | Ending balance of previous year |
| Interest payable | ||
| Dividends payable | ||
| Other payables | 15,699,302.91 | 13,973,447.42 |
| Total | 15,699,302.91 | 13,973,447.42 |
1. Other payables
(1) Presented according to nature of payment
| Item | Ending balance | Ending balance of previous year |
| Security deposit | 8,751,355.44 | 8,993,154.68 |
| Labor and service fees | 2,336,327.97 | 1,522,715.43 |
| Others | 4,611,619.50 | 3,457,577.31 |
| Total | 15,699,302.91 | 13,973,447.42 |
(2) Top five other payables
| entity name | Book balance | Proportion to the other accounts payable balance (%) |
| Shenzhen Nangang Power Engineering Co., Ltd. | 4,873,983.00 | 31.05 |
| Guangzhou Zike Environmental Protection Technology Co., Ltd. | 1,872,500.00 | 11.93 |
| Shanghai Power Equipment Research Institute Co., Ltd. | 1,773,515.02 | 11.30 |
| Zhongshan Nanlang Construction Development Co., Ltd. | 860,190.12 | 5.48 |
| Shenzhen Zhonghang Decoration Group Co., Ltd. | 662,877.82 | 4.22 |
| Total | 10,043,065.96 | 63.98 |
(XXVI) Non-current liabilities due within one year
Notes to the Financial Statements Page 59
| Item | Ending balance | Ending balance of previous year |
| Long-term borrowings due within one year | 27,525,963.50 | 1,399,170.93 |
| Lease liabilities due within one year | 4,291,942.82 | 2,556,609.50 |
| Less: unrecognized financing expenses | 213,106.03 | 29,453.98 |
| Total | 31,604,800.29 | 3,926,326.45 |
(XXVII) Other current liabilities
| Item | Ending balance | Ending balance of previous year |
| Progress payment for land acquisition and storage (Note) | 175,336,059.00 | |
| Value-added tax pending charge-off | 89,136.71 | |
| Total | 175,425,195.71 |
Note: according to the progress of land acquisition and storage of Shenzhen Nanshan PowerZhongshan Company, the progress payment of land acquisition and storage of Shenzhen NanshanPower Zhongshan Company has been presented to other current liabilities at the end of thereporting period. See Note V. (VIII) of the notes to the financial statements for the explanation.(XXVIII) Long-term borrowings
| Item | Ending balance | Ending balance of previous year |
| Credit loan | 58,829,426.30 | |
| Total | 58,829,426.30 |
(XXIX) Lease liabilities
1. Lease liabilities details
| Item | Ending balance | Ending balance of previous year |
| lease liabilities | 4,713,898.09 | |
| Less: unrecognized financing expenses | 73,407.09 | |
| Total | 4,640,491.00 | - |
2. Lease liabilities maturity analysis
Notes to the Financial Statements Page 60
| Item | Ending balance | Ending balance of previous year |
| 1-2 years | 4,640,491.00 | |
| Total | 4,640,491.00 |
(XXX) Estimated liabilities
| Item | Ending balance of previous 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 Company andHuidong Server Harbor Comprehensive Development Company signed the Agreement on Transferof Claims and the record of enforcement and compromise of the People's Court of HuidongCounty, partially resolving the historical issues concerning the ownership and division of theequity of Yapojiao Wharf. On January 20, 2021, Shenzhen Xiefu received a refund of RMB5,000,000.00 from the co-managed account. Shenzhen Xiefu accordingly reversed the estimatedliabilities by RMB 4,573,508.28. In 2021, Shenzhen Xiefu borne the lawyer and other expenses ofRMB 350,000 for this matter according to the agreed ratio, and the estimated liabilities decreasedby a total 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.
(XXXI) Deferred income
| Item | Ending balance of previous year | Increased amount in the current period | Decreased amount in the current period | Ending balance | Causes |
Notes to the Financial Statements Page 61
| Item | Ending balance of previous year | Increased amount in the current period | Decreased amount in the current period | Ending balance | Causes |
| Government subsidies (Note) | 67,869,348.07 | 3,173,447.45 | 64,695,900.62 | ||
| Total | 67,869,348.07 | 3,173,447.45 | 64,695,900.62 |
Note: the amount of government subsidies included in the current profit or loss is detailed in NoteVI (II) to the financial statements.
(XXXII) Other non-current liabilities
| Item | Ending balance | Ending balance of previous year |
| Progress payment for land acquisition and storage (Note) | 104,000,000.00 | |
| Interests of other partners in the partnership | 45,112.54 | 45,112.54 |
| Total | 45,112.54 | 104,045,112.54 |
Note: according to the progress of land acquisition and storage of Shenzhen Nanshan PowerZhongshan Company, the progress payment of land acquisition and storage of Shenzhen NanshanPower Zhongshan Company has been presented to other current liabilities at the end of thereporting period. See Note V. (VIII) of the notes to the financial statements for the explanation.
(XXXIII) Equity
| Item | Ending balance of previous 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 | Ending balance of previous 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 |
Notes to the Financial Statements Page 62
| Item | Ending balance of previous year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| Other capital reserve | 129,735,482.48 | 129,735,482.48 | ||
| Total | 362,770,922.10 | 362,770,922.10 |
Notes to the Financial Statements Page 63
(XXXV) Other comprehensive income
| Item | Ending balance of previous year | Beginning balance | Current period | Ending balance | |||||
| Amount before income tax for the current period | Less: recognized in other comprehensive income in the previous period and transferred to profit or 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 investments in equity instruments | -2,500,000.00 | -2,500,000.00 | -2,500,000.00 | ||||||
Notes to the Financial Statements Page 64
| Item | Ending balance of previous year | Beginning balance | Current period | Ending balance | |||||
| Amount before income tax for the current period | Less: recognized in other comprehensive income in the previous period and transferred to profit or 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 | ||||
| Total other comprehensive income | -2,500,000.00 | -2,500,000.00 | -2,500,000.00 | ||||||
Notes to the Financial Statements Page 65
(XXXVI) Special reserves
| Item | Ending balance of previous year | Increased amount in the current period | Decreased amount in the current period | Ending balance |
| Safety production costs | 2,811,200.91 | 1,324,352.45 | 1,486,848.46 | |
| Total | 2,811,200.91 | 1,324,352.45 | 1,486,848.46 |
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 | Ending balance of previous 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 | Ending balance | Ending balance of previous year |
| Undistributed profits at the end of last year before adjustments | 163,346,776.24 | 159,187,979.14 |
| Adjustments to the total amount of the undistributed profits at the beginning of the year (increase +, decrease -) | ||
| Undistributed profits at the beginning of the year after adjustments | 163,346,776.24 | 159,187,979.14 |
| Plus: net profit attributable to owners of parent company for the current period | -37,851,109.90 | 4,158,797.10 |
| Less: withdrawal of statutory surplus reserve | ||
| Dividends payable on ordinary shares | ||
| Ending undistributed profits | 125,495,666.34 | 163,346,776.24 |
Notes to the Financial Statements Page 66
(XXXIX) Operating revenue and operating costs
| Item | Current period | Previous period | ||
| revenue | Cost | revenue | Cost | |
| Main business | 187,206,813.92 | 180,267,125.57 | 270,628,454.23 | 285,268,563.82 |
| Other business | 697,450.79 | 83,278.38 | 639,730.82 | 99,366.08 |
| Total | 187,904,264.71 | 180,350,403.95 | 271,268,185.05 | 285,367,929.90 |
1. Breakdown by product or service type
| Item | Current period | Previous period | ||
| revenue | Cost | revenue | Cost | |
| Power production and sale | 182,701,860.97 | 178,403,013.82 | 260,794,861.20 | 281,263,633.98 |
| Integrated energy service | 4,504,952.95 | 1,864,111.75 | 9,833,593.03 | 4,004,929.84 |
| Others | 697,450.79 | 83,278.38 | 639,730.82 | 99,366.08 |
| Total | 187,904,264.71 | 180,350,403.95 | 271,268,185.05 | 285,367,929.90 |
2. By region
| Item | Current period | Previous period | ||
| revenue | Cost | revenue | Cost | |
| Domestic | 187,904,264.71 | 180,350,403.95 | 271,268,185.05 | 285,367,929.90 |
| Total | 187,904,264.71 | 180,350,403.95 | 271,268,185.05 | 285,367,929.90 |
3. Revenue broken down by time of transfer of goods or services
| Item | Current period | Previous period |
| Recognize revenue at a certain time point | 183,399,311.76 | 261,434,592.02 |
| Recognize revenue at a certain time point | 4,504,952.95 | 9,833,593.03 |
| Total | 187,904,264.71 | 271,268,185.05 |
Notes to the Financial Statements Page 67
(XL) Taxes and surcharges
| Item | Current period | Previous period |
| Property tax | 878,745.93 | 961,121.19 |
| Land use tax | 305,752.50 | 376,969.53 |
| Urban maintenance and construction tax | 218,338.44 | 323,664.43 |
| Stamp duty | 121,268.67 | 150,371.40 |
| Education surcharge | 93,573.61 | 136,671.47 |
| Local education surcharge | 62,382.40 | 91,114.32 |
| Environmental protection tax | 7,974.74 | 714.26 |
| Vehicle and vessel tax | 360.00 | 1,080.00 |
| Total | 1,688,396.29 | 2,041,706.60 |
(XLI) Selling and distribution expenses
| Item | Current period | Previous period |
| Employee compensation | 1,231,401.93 | 683,687.41 |
| Agency fee | 277,424.53 | 17,924.52 |
| Entertainment expenses | 55,369.70 | 60,438.80 |
| Others | 44,948.73 | 135,657.09 |
| Total | 1,609,144.89 | 897,707.82 |
(XLII) G&A expenses
| Item | Current period | Previous period |
| Employee compensation | 22,381,477.28 | 16,678,744.54 |
| Depreciation cost | 3,506,184.76 | 2,869,544.54 |
| Rental fees | 2,636,120.57 | 3,116,499.10 |
| Agency fee | 786,977.48 | 1,040,133.44 |
| Property management fee | 771,883.89 | 491,101.02 |
| Entertainment expenses | 562,297.27 | 709,926.13 |
Notes to the Financial Statements Page 68
| Item | Current period | Previous period |
| Vehicle expenses | 390,789.84 | 128,763.36 |
| Communication expenses | 377,172.45 | 381,621.13 |
| Travel expenses | 327,219.49 | 304,075.94 |
| Environmental protection fee | 318,601.76 | 63,096.10 |
| Fees of Board of Directors | 197,914.04 | 227,754.47 |
| Amortization of intangible assets | 166,886.35 | 31,717.80 |
| Office expenses | 139,670.26 | 195,789.57 |
| Repair costs | 105,850.09 | 359,247.29 |
| Stock related fee | 81,111.77 | 19,713.42 |
| Others | 3,896,136.61 | 7,895,474.87 |
| Total | 36,646,293.91 | 34,513,202.72 |
(XLIII) R&D expenses
| Item | Current period | Previous period |
| Employee compensation | 12,068,981.04 | 11,392,275.80 |
| Depreciation cost | 3,040,458.21 | 969,806.88 |
| Others | 7,423.50 | 935,843.63 |
| Total | 15,116,862.75 | 13,297,926.31 |
(XLIV) Financial expenses
| Item | Current period | Previous period |
| Interest costs | 7,897,040.69 | 9,582,105.76 |
| Less: interest income | 2,338,321.70 | 3,020,964.70 |
| Exchange losses (“-” for gains) | -37,606.16 | -199,804.29 |
| Handling charges | 168,779.49 | 203,183.08 |
| Unrecognized amortization of financing expenses | 52,282.29 | 165,845.27 |
| Total | 5,742,174.61 | 6,730,365.12 |
Notes to the Financial Statements Page 69
(XLV) Other benefits
1. Details of other income
| Item | Current period | Previous period |
| government subsidies | 3,578,045.23 | 3,990,464.54 |
| Personal tax handling charges refund | 34,481.46 | 74,806.72 |
| Total | 3,612,526.69 | 4,065,271.26 |
2. Government subsidies included in other income
See Note VI (II) to the financial statements for the amount of government subsidies included inother income in the current period.
(XLVI) Investment income
| Item | Current period | Previous period |
| Investment income from financial assets held for trading during the holding period | 6,510,401.50 | 9,342,507.91 |
| Income from long-term equity investments accounted for equity method under the equity method | 2,428,488.38 | 1,643,156.49 |
| Dividend income received from investments in equity instruments during the holding period | 68,719.76 | 8,740,206.13 |
| Total | 9,007,609.64 | 19,725,870.53 |
(XLVII) Losses from credit impairment
| Item | Current period | Previous period |
| Losses from bad debts of accounts receivable | ||
| Loss from bad debts of other receivables | ||
| Total |
(XLVIII) Asset impairment loss
| Item | Current period | Previous period |
| Inventory depreciation losses and impairment losses from contract |
Notes to the Financial Statements Page 70
| Item | Current period | Previous period |
| performance costs | ||
| Impairment loss of fixed assets | ||
| Impairment loss of construction in progress | ||
| Total |
(XLIX) Gains from disposal of assets
| Item | Current period | Previous period | Amount included in non-recurring gains and losses in the current period |
| Profit or loss on disposal of non-current assets | 111,895.22 | ||
| Total | 111,895.22 |
(L) Non-operating revenue
| Item | Current period | Previous period | Amount included in non-recurring gains and losses in the current period |
| Compensation for power outage and insurance | 4,767,828.93 | ||
| Subsidies for house demolition and resettlement | 75,461.40 | 226,384.24 | 75,461.40 |
| Total | 75,461.40 | 4,994,213.17 | 75,461.40 |
(LI) Non-operating expenses
| Item | Current period | Previous period | Amount included in non-recurring gains and losses in the current period |
| Losses from damage or scrapping of non-current assets | 108,730.90 | 5,873.61 | 108,730.90 |
| Others | 334.71 |
Notes to the Financial Statements Page 71
| Item | Current period | Previous period | Amount included in non-recurring gains and losses in the current period |
| Total | 108,730.90 | 6,208.32 | 108,730.90 |
(LII) Income tax expensesIncome tax expenses schedule
| Item | Current period | Previous period |
| Current income tax expenses | 479.55 | |
| Deferred income tax expenses | ||
| Total | 479.55 |
(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 ordinaryshares of the Company:
| Item | Current period | Previous period |
| Consolidated net profit attributable to ordinary shareholders of the parent company | -37,851,109.90 | -37,240,739.56 |
| Weighted average of outstanding ordinary shares of the Company | 602,762,596.00 | 602,762,596.00 |
| basic earnings per share | -0.0628 | -0.0618 |
2. Diluted earnings per share
| Item | Current period | Previous period |
| Consolidated net profit attributable to ordinary shareholders of the parent company (diluted) | -37,851,109.90 | -37,240,739.56 |
| Weighted average of outstanding ordinary shares of the Company (diluted) | 602,762,596.00 | 602,762,596.00 |
| Diluted earnings per share | -0.0628 | -0.0618 |
(LIV) Statement of cash flows items
Notes to the Financial Statements Page 72
1. Cash related to operating activities
(1) Cash received from other operating activities
| Item | Current period | Previous period |
| Interest income | 2,288,271.75 | 5,037,876.59 |
| Income from government subsidies | 241,800.00 | 693,966.28 |
| Current accounts received, etc. | 14,602,512.23 | 6,564,756.22 |
| Total | 17,132,583.98 | 12,296,599.09 |
(2) Other cash paid related to operating activities
| Item | Current period | Previous period |
| Expenses from payment period | 20,583,772.82 | 17,969,237.13 |
| Current accounts paid, etc. | 683,355.92 | 410,000.00 |
| Total | 21,267,128.74 | 18,379,237.13 |
2. Cash related to investing activities
(1) Other cash received related to investing activities
| Item | Current period | Previous period |
| Received interest on current accounts among related parties | ||
| Total |
(2) Other cash paid related to investing activities
| Item | Current period | Previous period |
| Deposit of financial assets held for trading and large certificates of deposit for cash payments | 181,000,000.00 | 50,000,000.00 |
| Total | 181,000,000.00 | 50,000,000.00 |
3. Cash related to financing activities
(1) Other cash received from other financing activities
| Item | Current period | Previous period |
Notes to the Financial Statements Page 73
| Item | Current period | Previous period |
| Total |
(2) Other cash paid related to financing activities
| Item | Current period | Previous period |
| Note deposit | 2,800,000.00 | 5,440,434.23 |
| Payment for principal and interest of lease liabilities | 2,684,440.00 | |
| Total | 5,484,440.00 | 5,440,434.23 |
(LV) Supplementary information of Statement of Cash Flows
1. Supplementary information of Statement of Cash Flows
| Supplementary information | Current period | Previous period |
| 1. Adjusting net profit to cash flows from operating activities | ||
| Net profit | -40,662,144.86 | -42,690,091.11 |
| Plus: losses from credit impairment | ||
| Provision for asset impairment | ||
| Depreciation and amortization of investment properties | 83,278.38 | 84,388.80 |
| Depreciation of fixed assets | 10,501,363.95 | 13,874,121.49 |
| Depreciation of right-of-use assets | 2,629,300.57 | 2,720,335.74 |
| amortization of intangible assets | 172,074.85 | 344,926.02 |
| amortization of long-term deferred expenses | 755,453.82 | 248,665.56 |
| Amortization of deferred income | -3,173,447.45 | -3,178,964.54 |
| Losses from disposal of fixed assets, intangible assets and other long-term assets (“-” for gains) | -111,895.22 | |
| Losses on write-off of fixed assets (“-” for gains) | 108,730.90 | 5,873.61 |
| Losses from changes in fair value (“-” for gains) | ||
| Financial expenses (“-” for gains) | 5,742,174.61 | 11,768,338.22 |
Notes to the Financial Statements Page 74
| Supplementary information | Current period | Previous period |
| Investment losses (“-” for gains) | -9,007,609.64 | -19,725,870.53 |
| Decrease in deferred tax assets (“-” for increases) | ||
| Increase in deferred tax liabilities (“-” for decreases) | ||
| Decrease in inventories (“-” for increases) | 2,430,717.81 | 283,099.78 |
| Decrease in operating receivables (“-” for increases) | -36,060,439.41 | -22,241,067.45 |
| Increase in operating payables (“-” for decreases) | 13,484,055.04 | 1,601,650.09 |
| Others | ||
| Net cash flows from operating activities | -52,996,491.43 | -57,016,489.54 |
| 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 | 309,726,567.91 | 260,399,636.35 |
| Less: beginning balance of cash | 310,734,919.56 | 648,021,672.06 |
| Plus: ending balance of cash equivalents | ||
| Less: beginning balance of cash equivalents | ||
| Net increase in cash equivalents | -1,008,351.65 | -387,622,035.71 |
2. Composition of cash and cash equivalents
| Item | Ending balance | Ending balance of previous year |
| I. Cash | 309,726,567.91 | 310,734,919.56 |
| Including: cash on hand | 30,227.42 | 30,329.83 |
| Bank deposits readily available for payment | 308,882,584.66 | 310,694,227.98 |
| Other monetary funds readily available for payment | 813,755.83 | 10,361.75 |
Notes to the Financial Statements Page 75
| Item | Ending balance | Ending balance of previous year |
| Deposits with the central bank available for payment | ||
| Interbank deposits | ||
| Interbank lending | ||
| II. Cash equivalents | ||
| Including: bond investments due within three months | ||
| III. Balance of ending cash and cash equivalents | 309,726,567.91 | 310,734,919.56 |
| Including: restricted cash and cash equivalents used by the parent company or subsidiaries within the group |
3. Monetary funds that are not classified as cash and cash equivalents
| Item | Current period | Previous period | Reasons for not being classified as cash and cash equivalents |
| L/G deposit | 2,800,000.00 | 5,440,434.23 | Frozen, restricted |
| deposit for bank acceptance bills | 27,474,594.34 | Frozen, restricted | |
| Total | 2,800,000.00 | 32,915,028.57 |
(LVI) Assets with restricted ownership or right of use
| Item | Ending book value | Reason for restriction |
| Monetary funds | 2,800,000.00 | L/G deposit |
| Total | 2,800,000.00 |
(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 | 840,420.61 | 7.1268 | 5,989,509.59 |
Notes to the Financial Statements Page 76
| Item | Ending foreign currency balance | Conversion exchange rate | Ending converted RMB balance |
| EUR | 1,017.87 | 7.6617 | 7,798.62 |
| HKD | 167,411.74 | 0.9127 | 152,793.37 |
| SGD | 3,153.03 | 5.2790 | 16,644.85 |
(LVIII) Lease
1. The Company serves as the Lessee
| Item | Current period | Previous period |
| Interest expenses on lease liabilities | 52,282.29 | 165,845.27 |
| Total cash outflow related to lease | 2,556,609.50 | 2,946,188.55 |
| Variable lease payments not included in the measurement of lease liabilities | ||
| Lease expenses for short-term lease or low-value assets simplified |
2. The Company serves as the Lessor
Operating leases when serving as the Lessor
| Item | Lease income | Including: revenue related to variable lease payments not included in lease receipts |
| House lease | 697,450.79 | |
| Total | 697,450.79 |
IV. R&D expenditures
| Item | Current period | Previous period |
| Employee compensation | 12,068,981.04 | 11,392,275.80 |
| Depreciation and amortization costs | 3,040,458.21 | 969,806.88 |
| Repair costs | 919,704.23 | |
| Royalties | 2,235.00 | 10,950.66 |
| Others | 5,188.50 | 5,188.74 |
| Total | 15,116,862.75 | 13,297,926.31 |
Notes to the Financial Statements Page 77
| Item | Current period | Previous period |
| Including: expensed R&D expenditures | 15,116,862.75 | 13,297,926.31 |
| Total | 15,116,862.75 | 13,297,926.31 |
V. 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 | |
2. Important non-wholly owned subsidiaries
| Name of subsidiary | Shareholding ratio of minority shareholders (%) | Profit or loss attributable to minority shareholders in the current period | Ending balance of minority interests |
| Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. | 20 | -1,876,061.54 | -108,275,342.25 |
Notes to the Financial Statements Page 78
3. Main financial information of important non-wholly owned subsidiaries
| Name of subsidiary | Ending balance/RMB | Ending balance of 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) | 52,269,274.86 | 208,097,428.93 | 260,366,703.79 | 801,743,415.03 | - | 801,743,415.03 | 24,201,215.36 | 244,116,938.96 | 268,318,154.32 | 696,314,557.88 | 104,000,000.00 | 800,314,557.88 |
| Name of subsidiary | Current period/RMB | 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) Power Co., Ltd. (Shenzhen Nanshan Power Zhongshan Company) | 11,033,515.24 | -9,380,307.68 | -9,380,307.68 | -34,505,641.13 | 43,549,971.34 | -23,988,910.88 | -23,988,910.88 | -1,700,627.90 |
Notes to the Financial Statements Page 79
(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, and is the secondlargest shareholder of Liaoyuan Environmental Protection. The Board of Directors of LiaoyuanEnvironmental Protection consists of five directors. The Company appointed one director onMarch 12, 2022, which has a significant impact on Liaoyuan Environmental Protection.
2. Main financial information of significant joint ventures or associates
| Ending balance/Current period | Ending balance of previous year/Previous period | |||
| Liaoyuan Environmental Protection | Huidong Xiefu | Liaoyuan Environmental Protection | Huidong Xiefu | |
| Current assets | 556,477,861.67 | 9,818,899.24 | 545,635,587.61 | 9,376,533.54 |
| Non-current assets | 408,458,430.21 | 8,946,052.32 | 419,944,510.12 | 9,354,277.78 |
| Total assets | 964,936,291.88 | 18,764,951.56 | 965,580,097.73 | 18,730,811.32 |
| Current liabilities | 174,170,502.32 | 36,531,068.89 | 198,836,634.15 | 36,567,083.73 |
| Non-current liabilities | 25,471,765.00 | 26,202,854.57 | ||
| Total liabilities | 199,642,267.32 | 36,531,068.89 | 225,039,488.72 | 36,567,083.73 |
| Minority interests | 232,211,556.33 | 223,928,134.66 | ||
| Equity attributable to shareholders of the parent company | 533,082,468.22 | -17,766,117.33 | 516,612,474.35 | -17,836,272.41 |
Notes to the Financial Statements Page 80
| Ending balance/Current period | Ending balance of previous year/Previous period | |||
| Liaoyuan Environmental Protection | Huidong Xiefu | Liaoyuan Environmental Protection | Huidong Xiefu | |
| Net asset share calculated based on shareholding ratio | 52,961,743.22 | -7,106,446.93 | 51,325,449.33 | -7,134,508.96 |
| Adjustments | 33,462,825.87 | 12,301,842.26 | 33,508,393.41 | 12,301,842.26 |
| -Others | 33,462,825.87 | 12,301,842.26 | 33,508,393.41 | 12,301,842.26 |
| Book value of equity investments in associates | 86,424,569.09 | 5,195,395.33 | 84,833,842.74 | 5,167,333.30 |
| Fair value of equity investments in associates with publicly quoted prices | ||||
| Operating revenue | 290,020,271.67 | 2,425,109.98 | 303,498,169.30 | 4,152,124.26 |
| Net profit | 35,511,384.03 | 70,155.08 | 29,264,974.12 | 836,998.72 |
| Net profit attributable to shareholders of the parent company | 24,779,256.21 | 70,155.08 | 25,136,762.60 | 836,998.72 |
| Net profit from discontinued operations | ||||
| Other comprehensive income | ||||
| Total comprehensive income | 24,779,256.21 | 70,155.08 | 25,136,762.60 | 836,998.72 |
| Dividends received from associates in the current period | 809,700.00 | 1,214,550.00 | ||
VI. Government subsidies(I) Liability items involving government subsidies
| Liabilities | Ending balance of | New subsidy | Amount included in | Amount transferred | Other changes | Ending | Related to |
Notes to the Financial Statements Page 81
| previous year | amount in the current period | non-operating revenue in the current period | to other income in the current period | in the current period | balance | assets/income | |
| Deferred income | 67,869,348.07 | 3,173,447.45 | 64,695,900.62 | Asset related | |||
| Total | 67,869,348.07 | 3,173,447.45 | 64,695,900.62 |
The details of the projects involving government subsidies are as follows:
| Item | Ending balance of previous year | New subsidy amount in the current period | Amount recognized in profit or loss in the current period | Other changes | Ending balance | Asset related/income related |
| Shenzhen air quality improvement subsidy | 44,598,351.64 | 2,365,909.13 | 42,232,442.51 | Asset related | ||
| Government subsidies for low-nitrogen equipment renovation | 18,376,607.94 | 229,384.08 | 18,147,223.86 | Asset related | ||
| Funding for Carbon Peak Support Program Industrial Energy Conservation and Comprehensive Utilization Project | 1,642,500.00 | 273,750.00 | 1,368,750.00 | Asset related | ||
| Special funds for promoting high-quality industrial development | 1,125,000.00 | 187,500.00 | 937,500.00 | Asset related | ||
| Circular economy support fund for sludge drying project | 945,979.59 | 64,290.90 | 881,688.69 | Asset related | ||
| Funds for technological transformation and investment projects in 2021-2022 | 917,388.90 | 35,333.34 | 882,055.56 | Asset related | ||
| Motor energy efficiency improvement subsidy scheme | 263,520.00 | 17,280.00 | 246,240.00 | Asset related | ||
| Total | 67,869,348.07 | 3,173,447.45 | 64,695,900.62 |
(II) Government subsidies included in the current profit or loss
| Subsidy project | Current period | Previous period |
| Other benefits | 3,578,045.23 | 3,990,464.54 |
| non-operating revenue | ||
| Total | 3,578,045.23 | 3,990,464.54 |
Notes to the Financial Statements Page 82
Details of government subsidies included in other income are as follows:
| Subsidy project | Current period | Previous period | Asset related/income related |
| Shenzhen air quality improvement subsidy | 2,365,909.13 | 2,365,909.08 | Asset related |
| Treasury bond subsidy for sludge drying project | 64,290.90 | 323,501.46 | Asset related |
| Green and low-carbon development project grants | 300,000.00 | Income related | |
| Science and technology innovation voucher | 296,500.00 | Income related | |
| Low nitrogen project renovation grants | 229,384.08 | 252,422.00 | Asset related |
| Circular economy support fund for sludge drying project | 127,500.00 | Asset related | |
| Stable employment subsidy | 3,197.78 | 115,000.00 | Income related |
| National high-tech enterprise doubling program | 100,000.00 | Income related | |
| Special funds for energy conservation and emission reduction | 57,018.66 | Asset related | |
| Funds for technological transformation and investment projects in 2021-2022 | 35,333.34 | 35,333.34 | Asset related |
| Motor energy efficiency improvement subsidy scheme | 17,280.00 | 17,280.00 | Asset related |
| Special funds for industrial development | 20,000.00 | Income related | |
| Special funds for promoting high-quality industrial development | 187,500.00 | Asset related | |
| Special funds for promoting high-quality industrial development in Nanshan District | 241,800.00 | Income related | |
| Supporting funds for industrial energy conservation and comprehensive utilization projects in the carbon peak support plan | 273,750.00 | Asset related | |
| Funding project for promoting the continuous and smooth operation of | 139,600.00 | Income |
Notes to the Financial Statements Page 83
| Subsidy project | Current period | Previous period | Asset related/income related |
| industries above designated size | related | ||
| Total | 3,578,045.23 | 3,990,464.54 |
VII. 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 riskexposures 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. Asany risk variable seldom changes in isolation, and the correlation between the variables will have asignificant effect on the final affected amount of the change of a risk variable, the followingcontents are carried out under the assumption that the change of each variable is independently:
(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.
Notes to the Financial Statements Page 84
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 June 30, 2024, the Company's bank borrowings with floating interest rate totaled RMB1,961,625.26. Based on the above assumptions, with other variables unchanged, assuming a 5%changes in interest rates, the pre-tax impact on current profit or loss and shareholders' equity is asfollows:
| 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% | -98,081.26 | -98,081.26 | -82,238.69 | -82,238.69 |
| Decrease of 5% | 98,081.26 | 98,081.26 | 82,238.69 | 82,238.69 |
(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 | Ending balance of previous year | ||||
| USD | Other foreign currencies | Total | USD | Other foreign currencies | Total | |
| Monetary funds | 5,989,509.59 | 177,236.84 | 6,166,746.43 | 5,931,199.10 | 188,141.17 | 6,119,340.27 |
| Total | 5,989,509.59 | 177,236.84 | 6,166,746.43 | 5,931,199.10 | 188,141.17 | 6,119,340.27 |
As of June 30, 2024, 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 308,337.32. The Management believes that 5% reasonably reflects the reasonable rangeof possible changes in RMB against foreign currencies in the following year.
VIII. Disclosure of fair valueThe input value used for measuring fair value is divided into three levels:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities
Notes to the Financial Statements Page 85
that 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 June 30, 2024
| Item | Fair value as at June 30, 2024 | |||
| Measured at the fair value of level 1 | Measured at the fair value of level 2 | Measured at the fair value of level 3 | Total | |
| Continuous measurement at fair value | ||||
| Financial assets held for trading | 273,000,000.00 | 273,000,000.00 | ||
| Other investments in equity instruments | 350,615,000.00 | 350,615,000.00 | ||
| Total assets with continuous measurement at fair value | 623,615,000.00 | 623,615,000.00 | ||
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.
IX. 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 "V (I) Interests 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 "V (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 |
Notes to the Financial Statements Page 86
| Name of other related parties | Relationship between other related parties and the Company |
| 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, a director who left the Company in the past 12 months, served as a director of the Company |
| Shenzhen MTC Co., Ltd. | Sun Huirong, a director who left the Company in the past 12 months, served as a director of the 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
| Related party | Details of related transactions | Amount in current period | Amount of transactions approved | Whether the transaction limit is exceeded | Amount in previous period |
| Artron Art (Group) Co., Ltd. and its subsidiaries | Purchase of goods | 9,418.50 | |||
| Shenzhen MTC Co., Ltd. | Accepting labor services | 309,121.92 |
2. Related-party guarantees
The Company has no related-party guarantees.
(VI) Receivables and payables of related parties
1. receivables
| Project name | Related party | Ending book balance | Ending book balance of previous year |
| Other receivables | Huidong Xiefu | 15,637,433.45 | 15,532,630.74 |
Notes to the Financial Statements Page 87
| Project name | Related party | Ending book balance | Ending book balance of previous year |
| Total | 15,637,433.45 | 15,532,630.74 |
X. Commitments and contingencies(I) Commitments
1. Information on guarantees issued as of June 30, 2024
The Company applied to China Merchants Bank Co., Ltd. Shenzhen Branch for a performancebond of RMB 2,800,000.00 for the Company and its wholly-owned subsidiary Shenzhen NanshanPower Environmental Protection Company within the credit line, which will expire on March 31,2025.
2. Other commitments
As of June 30, 2024, except for the above matters, the Company has no other importantcommitments required to be disclosed.(II) ContingenciesAs of June 30, 2024, the Company had no contingencies required to be disclosed.XI. Events after the balance sheet date(I) Important non-adjusting eventsAs of the date of the Report, the Company has no subsequent events that need to be disclosed.XII. Other important events(I) Information on segments
1. Determination basis and accounting policies of reporting segmentsFor 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 Division;
(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.
2. Financial information of reporting segments
| Item | Power Production and Sale Division | Integrated Energy Service Segment | Other Segments | Inter-Segment Offsetting | Total |
| Operating revenue | 182,794,785.96 | 18,756,095.68 | 604,525.80 | 14,251,142.73 | 187,904,264.71 |
| Operating costs | 181,148,653.86 | 11,858,462.90 | 83,278.38 | 12,739,991.19 | 180,350,403.95 |
Notes to the Financial Statements Page 88
| Item | Power Production and Sale Division | Integrated Energy Service Segment | Other Segments | Inter-Segment Offsetting | Total |
| Total assets | 2,171,009,352.02 | 120,583,899.52 | 349,703,172.22 | 488,622,078.22 | 2,152,674,345.54 |
| Total liabilities | 967,294,084.30 | 48,507,864.16 | 16,383,769.56 | 231,149,437.73 | 801,036,280.29 |
(II) Others
1. Annuity plan
According to the Company's enterprise annuity plan, the Company accrues and pays enterpriseannuities at 8% of employees' wages.
XIII. 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 | Ending balance of previous year |
| Within 1 year | 58,955,956.80 | 26,981,407.91 |
| Subtotal | 58,955,956.80 | 26,981,407.91 |
| Less: provision for bad debts | ||
| Total | 58,955,956.80 | 26,981,407.91 |
2. Accounts receivable are classified and disclosed according to the method of provisionfor bad debts
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | |||||
| Provision for bad debts on a credit risk portfolio basis | 58,955,956.80 | 100.00 | 58,955,956.80 | ||
| Total | 58,955,956.80 | 100.00 | 58,955,956.80 | ||
Notes to the Financial Statements Page 89
| Category | Ending balance of previous year | ||||
| Book balance | provision for bad debts | book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | |||||
| Provision for bad debts on a credit risk portfolio basis | 26,981,407.91 | 100.00 | 26,981,407.91 | ||
| Total | 26,981,407.91 | 100.00 | 26,981,407.91 | ||
(1) Provision for bad debts on a portfolio basis:
| Name of portfolios | Ending balance | ||
| Accounts receivable | Provision for bad debts | Provision ratio (%) | |
| Portfolio II: receivables from power production and sales | 58,955,956.80 | ||
| Total | 58,955,956.80 | ||
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. | 58,955,956.80 | 58,955,956.80 | 100.00 | ||
| Total | 58,955,956.80 | 58,955,956.80 | 100.00 |
(II) Other receivables
| Item | Ending balance | Ending balance of previous year |
Notes to the Financial Statements Page 90
| Item | Ending balance | Ending balance of previous year |
| Interest receivable | ||
| Dividends receivable | ||
| Other receivables | 700,585,696.79 | 714,553,901.02 |
| Total | 700,585,696.79 | 714,553,901.02 |
1. Other receivables
(1) Disclosure based on aging
| Aging | Ending balance | Ending balance of previous year |
| Within 1 year | 697,503,734.93 | 711,403,571.07 |
| 1 to 2 years | 2,500.00 | |
| 2 to 3 years | 2,500.00 | |
| Over 3 years | 29,104,477.35 | 29,172,845.44 |
| Subtotal | 726,610,712.28 | 740,578,916.51 |
| Less: provision for bad debts | 26,025,015.49 | 26,025,015.49 |
| Total | 700,585,696.79 | 714,553,901.02 |
(2) Disclosure by category
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | 26,025,015.49 | 3.58 | 26,025,015.49 | 100.00 | |
| Provision for bad debts on a credit risk portfolio basis | 700,585,696.79 | 96.42 | 700,585,696.79 | ||
| Total | 726,610,712.28 | 100.00 | 26,025,015.49 | 100.00 | 700,585,696.79 |
Notes to the Financial Statements Page 91
| Category | Ending balance of previous year | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Provision ratio (%) | ||
| Provision for bad debts on an individual basis | 26,025,015.49 | 3.51 | 26,025,015.49 | 100.00 | |
| Provision for bad debts on a credit risk portfolio basis | 714,553,901.02 | 96.49 | 714,553,901.02 | ||
| Total | 740,578,916.51 | 100.00 | 26,025,015.49 | 100.00 | 714,553,901.02 |
① Provision for bad debts on an individual basis:
| Name | Ending balance of previous 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 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 | 8,347.00 | 8,347.00 | 8,347.00 | 8,347.00 | 100.00 | Not expected to be recovered |
| Total | 26,025,015.49 | 26,025,015.49 | 26,025,015.49 | 26,025,015.49 | 100.00 | |
② Provision for bad debts on a portfolio basis
Notes to the Financial Statements Page 92
| Name | Ending balance | ||
| Other receivables | Provision for bad debts | Provision ratio (%) | |
| Portfolio IV: current accounts of related parties within the consolidation | 698,655,120.20 | ||
| Portfolio V: guarantee, deposit and petty cash portfolio | 1,473,898.05 | ||
| Portfolio VII: other receivables and temporary payments | 456,678.54 | ||
| Total | 700,585,696.79 | ||
(3) Classification by nature of payment
| Nature of payment | Ending book balance | Ending book balance of previous year |
| Transactions among related parties within the combination | 698,655,120.20 | 712,425,641.88 |
| Other receivables and temporary payments | 14,648,411.55 | 14,645,149.15 |
| Receivable from employees | 11,833,282.48 | 11,882,548.16 |
| Margin, security deposit and petty cash portfolio | 1,473,898.05 | 1,625,577.32 |
| Subtotal | 726,610,712.28 | 740,578,916.51 |
| Less: provision for bad debts | 26,025,015.49 | 26,025,015.49 |
| Total | 700,585,696.79 | 714,553,901.02 |
(4) Provision for bad debts
| Provision for bad debts | The first stage | The second stage | The third stage | 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 | 26,025,015.49 | 26,025,015.49 |
Notes to the Financial Statements Page 93
| Provision for bad debts | The first stage | The second stage | The third stage | 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 in the current period | ||||
| - Transfer to the second stage | ||||
| - Transfer to the third stage | ||||
| - Reversal to the second stage | ||||
| - Reversal to the first stage | ||||
| Provision for the current period | ||||
| Reverse for the current period | ||||
| Charge-off for the current period | ||||
| Write-off for the current period | ||||
| Other changes | ||||
| Ending balance | 26,025,015.49 | 26,025,015.49 |
(5) Centralized fund management
| Amounts included in other receivables due to centralized fund management | 650,964,195.46 |
| Situation description | The Company centralizedly manages the funds, and the principal and interest of the subsidiary receivable is RMB 650,964,195.46, and the principal and interest of the subsidiary payable is RMB 82,126,419.27. |
(III) Long-term equity investments
| Item | Ending balance | Ending balance of previous year |
Notes to the Financial Statements Page 94
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Investments in subsidiaries | 805,895,003.07 | 445,002,245.26 | 360,892,757.81 | 855,811,150.92 | 445,002,245.26 | 410,808,905.66 |
| Investments in associates and joint ventures | 86,424,569.09 | 86,424,569.09 | 84,833,842.74 | 84,833,842.74 | ||
| Total | 892,319,572.16 | 445,002,245.26 | 447,317,326.90 | 940,644,993.66 | 445,002,245.26 | 495,642,748.40 |
1. Investments in subsidiaries
| Investees | Ending balance of previous year | Increased amount in the current period | Decreased amount in the current period | Ending balance | Provision for impairment in the current period | Ending balance of provision for impairment |
| Shenzhen Xiefu Energy Co., Ltd. | 26,650,000.00 | 26,650,000.00 | ||||
| Shennan Energy (Singapore) Co., Ltd. | 6,703,800.00 | 6,703,800.00 | ||||
| Shenzhen New Power Industrial Co., Ltd. | 175,637,763.02 | 49,916,147.85 | 125,721,615.17 | 13,709,556.49 | ||
| Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. | 410,740,001.00 | 410,740,001.00 | 410,740,000.00 | |||
| Shenzhen Nanshan Power Gas Turbine Engineering Technology (Shenzhen) Co., Ltd. | 24,460,360.00 | 24,460,360.00 | ||||
| Shenzhen Nanshan Power Environmental Protection (Shenzhen) Co., Ltd. | 70,191,704.81 | 70,191,704.81 | 20,552,688.77 | |||
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | 141,427,522.09 | 141,427,522.09 | ||||
| Total | 855,811,150.92 | 49,916,147.85 | 805,895,003.07 | 445,002,245.26 |
Shenzhen Nanshan Power Co., Ltd.Year 2024Notes to the Financial Statements
Notes to the Financial Statements Page 95
2. Investments in associates and joint ventures
| Investees | Ending balance of previous 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 | |||||
| Associates | ||||||||||||
| Liaoyuan Environmental Protection | 84,833,842.74 | 2,400,426.35 | 809,700.00 | 86,424,569.09 | ||||||||
| Subtotal | 84,833,842.74 | 2,400,426.35 | 809,700.00 | 86,424,569.09 | ||||||||
| Total | 84,833,842.74 | 2,400,426.35 | 809,700.00 | 86,424,569.09 | ||||||||
Shenzhen Nanshan Power Co., Ltd.Year 2024Notes to the Financial Statements
Notes to the Financial Statements Page 96
(IV) Operating revenue and operating costs
| Item | Current period | Previous period | ||
| revenue | Cost | revenue | Cost | |
| Main business | 83,356,643.60 | 117,329,074.78 | 123,160,499.18 | 167,370,297.62 |
| Other business | 56,683,880.98 | 1,356,144.85 | 44,602,733.18 | 14,977.28 |
| Total | 140,040,524.58 | 118,685,219.63 | 167,763,232.36 | 167,385,274.90 |
1. Break down by product or service type
| Item | Current period | Previous period | ||
| revenue | Cost | revenue | Cost | |
| Power production and sale | 139,947,599.59 | 117,329,074.78 | 167,714,012.09 | 167,370,297.62 |
| Others | 92,924.99 | 49,220.27 | 14,977.28 | |
| Total | 140,040,524.58 | 118,685,219.63 | 167,763,232.36 | 167,385,274.90 |
2. By region
| Item | Current period | Previous period | ||
| revenue | Cost | revenue | Cost | |
| Domestic | 140,040,524.58 | 118,685,219.63 | 167,763,232.36 | 167,385,274.90 |
| Total | 140,040,524.58 | 118,685,219.63 | 167,763,232.36 | 167,385,274.90 |
3. Revenue broken down by time of transfer of goods or services
| Item | Current period | Previous period |
| Recognize revenue at a certain time point | 140,040,524.58 | 167,763,232.36 |
| Total | 140,040,524.58 | 167,763,232.36 |
Shenzhen Nanshan Power Co., Ltd.Year 2024Notes to the Financial Statements
Notes to the Financial Statements Page 97
(V) Investment income
| Item | Current period | Previous period |
| Income from long-term equity investments accounted for equity method under the equity method | 2,400,426.35 | 1,308,357.00 |
| Investment income from financial assets held for trading during the holding period | 6,510,401.50 | 9,342,507.91 |
| Dividend income received from investments in equity instruments during the holding period | 68,719.76 | 340,206.13 |
| Dividends from long-term equity investments | 6,717,600.82 | |
| Total | 8,979,547.61 | 17,708,671.86 |
XIV. Supplementary information(I) Statement of non-recurring profit or loss in the current period
| Item | Amount | Remark |
| Profit or loss on disposal of non-current assets, including write-offs of provision for asset impairment that has been made | -108,730.90 | |
| Government subsidies included in the current profit or loss, 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 profit or loss | 439,079.24 | |
| Except for the effective hedging business related to the Company's normal operating business, profit or loss from changes in fair value of financial assets and financial liabilities held by non-financial enterprises and profit or loss arising from the disposal of financial assets and financial liabilities | 6,510,401.50 | |
| Fund occupation fees charged to non-financial enterprises included in the current profit or loss | ||
| Profit or loss from entrusting others to invest or manage assets | ||
| Profit or loss 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 |
Shenzhen Nanshan Power Co., Ltd.Year 2024Notes to the Financial Statements
Notes to the Financial Statements Page 98
| Item | Amount | Remark |
| 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 or loss of subsidiaries from the beginning of the period to the combination date arising from business combination under the common control | ||
| Profit or loss from exchange of non-monetary assets | ||
| Profit or loss from 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 profit or loss 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, profit or loss arising from fairvalue changes of employee compensation payable after the vesting date
| Profit or loss from fair value changes of investment 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 the above | 75,461.40 | |
| Other profit or loss items that meet the definition of non-recurring profit or loss | ||
| Subtotal | 6,916,211.24 | |
| Less: income tax impact | ||
| Changes in the amount of minority interests (after tax) | 7,264.06 |
Shenzhen Nanshan Power Co., Ltd.Year 2024Notes to the Financial Statements
Notes to the Financial Statements Page 99
| Item | Amount | Remark |
| Total | 6,908,947.18 |
(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 | -2.63 | -0.0628 | -0.0628 |
| Net profit attributable to ordinary shareholders of the Company after deducting non-recurring profit or loss | -3.11 | -0.0743 | -0.0743 |
Shenzhen Nanshan Power Co., Ltd.
(Official seal)
August 23, 2024