深圳南山热电股份有限公司Shenzhen Nanshan Power Co., Ltd.
Annual Report 2018
Notice No.: 2019-011
March 2019
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and seniorexecutives of Shenzhen Nanshan Power Co., Ltd. (hereinafter referred to as theCompany) hereby confirm that there are no any fictitious statements, misleadingstatements, or important omissions carried in this report, and shall take allresponsibilities, individual and/or joint, for the reality, accuracy and completionof the whole contents.Principal of the Company- Chairman Li Xinwei, person in charger ofaccounting works- Director and GM Chen Yuhui, CFO Dai Xiji and person incharge of accounting organ (chief accountants)- deputy GM Wang Yi(act forfinancial works) hereby confirm that the Financial Report of the annual reportis authentic, accurate and complete.Except the followed directors, other directors are attending the meeting forannual report deliberation in person
| Director not personally attended | Title of the director not personally attended | Reasons for absent | Mandatory |
| Yu Chunling | Director | Job-related reason | Li Xinwei |
| Chen Zetong | Independent Director | Job-related reason | Mo Jianmin |
Investors are advised to exercise caution of investment risks.The report has been prepared in both Chinese and English, for anydiscrepancies, the Chinese version shall prevail. Please read the full reportseriously.
Contents
Section I. Important Notice, Contents and Paraphrase ................................................................. 2
Section I Important Notice, Contents and Paraphrase ...... 5
Section II Company Profile and Main Financial Indexes ...... 6
Section III Summary of Company Business ...... 10
Section IV Discussion and Analysis of the Operation ...... 13
Section V Important Events ...... 32
Section VI Changes in shares and particular about shareholders ...... 51
Section VII Preferred Stock ...... 58Section VIII Particulars about Directors, Supervisors, Senior Executives and Employees ..... 59Section IX Corporate Governance ...... 70
Section X Corporate-bond ...... 80
Section XI Financial Report ...... 81
Section XII Documents available for reference ...... 218
Paraphrase
| Items | Refers to | Contents |
| Company, the Company, Shen Nan Dian, The listed company | Refers to | Shenzhen Nanshan Power Co., Ltd. |
| Shen Nan Dian Zhongshan Company | Refers to | Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. |
| Shen Nan Dian Dongguan Company | Refers to | Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd |
| Shen Nan Dian Engineering Company | Refers to | Shenzhen Shennandian Turbine Engineering Technology Co., Ltd. |
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | Refers to | Shenzhen Shen Nan Dian Environment Protection Co., Ltd. |
| Server Company | Refers to | Shenzhen Server Petrochemical Supplying Co., Ltd |
| New Power Company | Refers to | Shenzhen New Power Industrial Co., Ltd. |
| Singapore Company | Refers to | Shen Nan Energy (Singapore) Co., Ltd. |
| Nanshan Power Factory | Refers to | Nanshan Power Factory of Shenzhen Nanshan Power Co., Ltd. |
| Zhongshan Nanlang Power Plant | Refers to | Zhongshan Nanlang Power Plant of Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. |
| Dongguan Gaobu Power Plant | Refers to | Dongguan Gaobu Power Plant of Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd |
| NAM HOI | Refers to | HONG KONG NAM HOI (INTERNATIONAL) LTD. |
| Hong Kong Energy | Refers to | Shenzhen Energy (Hong Kong) International Co.,LTD. |
| Shen Energy Group | Refers to | Shenzhen Energy Co., Ltd. |
| Energy Group | Refers to | Shenzhen Energy Group Co., Ltd. |
| Guangju Industrial | Refers to | Shenzhen Guangju Industrial Co., Ltd. |
| Guangju Holding | Refers to | Shenzhen Guangju Investment Holding (Group) Co., Ltd. |
| Guangju Energy | Refers to | Shenzhen Guangju Energy Co., Ltd. |
| Kehuitong | Refers to | Shenzhen Kehuitong Investment Holding Co., Ltd. |
| Auditing institute, Ruihua CPA, Accounting Institute | Refers to | Ruihua Certified Public Accounts (Engagement Partner) |
| Articles of Association | Refers to | Article of Association of Shenzhen Nanshan Power Co., Ltd. |
| RMB, in 10 thousand Yuan, 100 Million Yuan | Refers to | Except the special description of the monetary unit, rest of the monetary unit is RMB Yuan, ten thousand Yuan, the 100 Million Yuan |
| Reporting period | Refers to | The 1 January 2018 to 31 December 2018 |
Section II. Company Profile and Main Financial Indexes
I. Company information
| Short form of the stock | Shen Nan Dian A , Shen Nan Dian B | Stock code | 000037, 200037 |
| Stock exchange for listing | Shenzhen Stock Exchange | ||
| Name of the Company (in Chinese) | 深圳南山热电股份有限公司 | ||
| Short form of the Company (in Chinese) | 深南电 | ||
| Foreign name of the Company (if any) | Shenzhen Nanshan Power Co., Ltd. | ||
| Legal representative | President LI XINWEI | ||
| Registrations add. | No.2097 Yueliangwan Avenue, Nanshan District, Shenzhen, Guangdong Province | ||
| Code for registrations add | 518054 | ||
| Offices add. | 16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, Guangdong Province | ||
| Codes for office add. | 518053 | ||
| Company’s Internet Web Site | http://www.nsrd.com.cn | ||
| public@nspower.com.cn; investor@nspower.com.cn | |||
| Secretary of the Board | Rep. of security affairs | |
| Name | Zhang Jie | |
| Contact add. | 16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, Guangdong Province | |
| Tel. | 0755-26003611 | |
| Fax. | 0755-26003684 | |
| investor@nspower.com.cn |
| Newspaper appointed for information disclosure | China Securities Journal; Securities Times; Hong Kong Commercial Daily |
| Website for annual report publish appointed by | http://www.cninfo.com.cn/ |
| Preparation place for annual report | Secretariat of the Board of Directors, 17/F, Hantang Building, OCT, |
Nanshan District, Shenzhen, Guangdong Province
Nanshan District, Shenzhen, Guangdong Province
IV. Registration changes of the Company
| Unified social credit code | 91440300618815121H |
| Changes of main business since listing (if applicable) | N/A |
| Previous changes for controlling shareholders (if applicable) | N/A |
| Name of CPA | Ruihua Certified Public Accounts (Engagement Partner) |
| Offices add. for CPA | 5-11/F, West Tower, China Oversea Property Plaza, NO. 7 Building of No. 8 West Binhe Rd., Dongcheng District, Beijing |
| Signing Accountants | Zhang Liping, Huang Shaoqin |
| 2018 | 2017 | Changes over last year | 2016 | |
| Operating income (RMB) | 1,884,937,109.00 | 2,045,766,831.74 | -7.86% | 1,574,088,977.85 |
| Net profit attributable to | 19,253,766.12 | 15,904,182.47 | 21.06% | 1,306,694,835.46 |
| Financial consultant | Office address | Sponsor of the consultant | Continuous supervision period |
| China Merchants Securities | CMS Building, No. 111, Fuhua 1 Rd., Futian District, Shenzhen | Zhan Chao, Wang Xinyu | Not less than ONE completed accounting year after the Sale of Substantial Assets completed since the target assets (each 75% equity of Zhongshan Shenzhong Real Estate Investment Property Co., Ltd. and Zhongshan Shenzhong Real Estate Development Co., Ltd. held by the Company transferred) completed its industrial & commercial registration procedures |
shareholders of the listed Company(RMB)
| shareholders of the listed Company (RMB) | ||||
| Net profit attributable to shareholders of the listed Company after deducting non-recurring gains and losses (RMB) | -13,515,247.29 | 11,413,492.42 | -218.41% | -128,991,534.34 |
| Net cash flow arising from operating activities (RMB) | 236,563,160.38 | 196,799,855.73 | 20.20% | 926,321,325.40 |
| Basic earnings per share (RMB/Share) | 0.032 | 0.026 | 21.06% | 2.17 |
| Diluted earnings per share (RMB/Share) | 0.032 | 0.026 | 21.06% | 2.17 |
| Weighted average ROE | -0.69% | 0.59% | -1.28% | -10.00% |
| End of 2018 | End of 2017 | Changes over end of last year | End of 2016 | |
| Total assets (RMB) | 3,307,148,289.92 | 2,883,804,392.70 | 14.68% | 4,363,703,614.03 |
| Net assets attributable to shareholder of listed Company (RMB) | 1,977,871,851.51 | 1,958,618,085.39 | 0.98% | 1,942,713,902.92 |
| First quarter | Second quarter | Third quarter | Fourth quarter | |
| Operating income | 403,525,942.67 | 676,234,272.13 | 540,079,674.10 | 265,097,220.10 |
Net profit attributable toshareholders of the listed Company
| Net profit attributable to shareholders of the listed Company | -10,927,762.57 | 40,939,857.79 | 7,163,302.91 | -17,921,632.01 |
| Net profit attributable to shareholders of the listed Company after deducting non-recurring gains and losses | -11,221,495.07 | 40,125,867.85 | 5,706,327.68 | -48,125,947.75 |
| Net cash flow arising from operating activities | -69,260,605.97 | 121,851,240.25 | 182,384,779.63 | 1,587,746.47 |
| Item | 2018 | 2017 | 2016 | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | - | -454,644.16 | 1,660,659,958.12 | - |
| Governmental subsidy calculated into current gains and losses(while closely related with the normal business of the Company, excluding the fixed-amount or fixed-proportion governmental subsidy according to the unified national standard) | 5,124,971.79 | 4,331,837.03 | -2,463,841.18 | Government grants with assets concerned are amortized |
| Switch back of the impairment for receivables which has impairment test independently | - | 1,504,310.97 | - | - |
| Other non-operating income and expenditure except for the aforementioned items | 37,044,913.53 | 335,919.18 | -965,906.07 | The accounts which are no need to paid are transfer to non-operating income |
| Less: impact on income tax | 6,525,056.89 | 803,999.72 | 221,481,615.44 | - |
| Impact on minority shareholders’ equity (post-tax) | 2,875,815.02 | 422,733.25 | 62,225.63 | - |
| Total | 32,769,013.41 | 4,490,690.05 | 1,435,686,369.80 | -- |
□ Applicable √ Not applicableConcerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, the Company has no such items in the reporting period for the aforesaid
Section III. Summary of Company Business
I. Main businesses of the Company in the reporting period
Does the Company need to comply with the disclosure requirement of the special industryNoThe company is specialized in power and thermal supply, as well as providing technical consulting and technical services for powerstations. The company has three wholly-owned or holding gas turbine plants, which equipped with seven sets of 9E gas steamcombined cycle power generating units, with total installed capacity up to 1260 MW (Nanshan Power Factory: 3×180 MW,Zhongshan Nanlang Power Plant: 2×180 MW, Dongguan Gaobu Power Plant: 2×180 MW). These three gas turbine plants are alllocated in the power load center of Pearl River Delta area, which are the main peaking power sources in their areas. During thereporting period, due to the impact of reducing in the price of electricity on the grid and higher requirements for environmentalprotection, the company faced greater pressure in its main business of electric power. In order to minimize the negative impact of theexternal environment on the company’s operating performance, on the basis of paying close attention to safety productionmanagement, the company increased its economic operation management, complied with the constantly accelerating trend of thepower market-oriented reform process in Guangdong Province, organized Zhongshan Nanlang Power Plant and Dongguan GaobuPower Plant to actively participate in the power market marketing competition and achieved good results. In 2018, the company’ssubordinate power plants completed the actual on-grid electricity quantity of 2.797 billion kWh and the electricity marketing quantityof 1.473 billion kWh, totally completed electricity quantity (on-grid electricity quantity + electricity marketing quantity) of 4.27billion kWh, with a year-on-year growth of 37.17%, there-into, Nanshan Power Factory completed 1.766 billion kWh of on-gridelectricity, with a year-on-year growth of 11.98%; Zhongshan Nanlang Power Plant completed 494 million kWh of on-grid electricity,the full electricity quantity totaled 1.224 billion kWh, with a year-on-year growth of 38.46%; Dongguan Gaobu Power Plantcompleted 537 million kWh of electricity on the grid, the full electricity quantity totaled 1.28 billion kWh, with a year-on-yearincrease of 96.32%.
During the reporting period, the company not only strive to improve the operating efficiency of its main business of electric power,but also made great efforts to the operation and expansion of related businesses. The subordinate Shen Nan Dian EngineeringCompany continued to develop the technical consultation and technology service business for the construction of domestic andinternational gas turbine power stations. Shen Nan Dian Environmental Protection Company engaged in the drying treatment of wetsludge in sewage treatment plants by utilizing the waste heat generated by gas turbines, and the annual processing capacity of wetsludge was 142,000 tons, which created a new record for its production, and realized the reduction and harmless treatment of sludgeand the comprehensive utilization of resources.
II. Major changes in main assets
1. Major changes in main assets
| Major assets | Note of major changes |
Equity assets
| Equity assets | N/A |
| Fixed assets | N/A |
| Intangible assets | N/A |
| Construction in process | The expenditures from low-nitrogen combustion system upgrading and cogeneration technical improvement increased |
| Monetary fund | Loans from the bank increased |
| Note receivable | The note receivable for project settlement declined |
| Account receivable | The electricity income receivable from Shenzhen Power Supply Bureau increased |
| Advance payment | The account paid in advance for natural gas declined in this year |
technical experts and professionals in the gas turbine industry, accumulated rich experience in the construction and operationmanagement of gas turbine power plants. On the basis of ensuring the safe and stable operation of the company’s power generationequipment, we also exported technical consultation and training and other professional services. Shen Nan Dian EngineeringCompany has provided professional services such as technical consulting, commissioning and maintenance for dozens of domesticand international gas turbine power stations. The company's training center has successively undertaken the technician trainingbusiness for tens of power plants at home and abroad, and has become a renowned professional training base in the domestic gasturbine industry, and has established a good reputation and professional brand image in the industry. The company also has a groupof management talents with innovative consciousness and fighting spirit, based on the principle of being highly responsible to thecompany, they lead all employees to make unremitting efforts for the company’s continuous operation and transformationdevelopment.
Section IV. Discussion and Analysis of the Operation
I. Introduction
2018 was the opening year to fully implement the spirit of the 19
th
National Congress of the Communist Party of China, and it wasalso a crucial year for the implementation of the 13th Five-Year Plan. Striving for improvement in stability was still the chiefkeystone of China’s economic work in 2018.In 2018, the economic operation of Guangdong Province continued the development trend of “stable overall and some indicatorsslowed down”. According to the statistics and analysis of relevant authorities, the province’s total electricity consumption for thewhole year was 632.34 billion kWh, an increase of 6.1% on a year-on-year basis; the annual electricity purchase was 599.5 billionkWh, an increase of 6.3% on a year-on-year basis; newly increased 23 units with a total capacity of 12,194,000 kilowatts. The wholeprovince’s electric power supply met the demand and the overall electricity supply was surplus. With the deepening of the reform ofelectric power market in Guangdong Province, the power generation has gradually changed from planned power generation tomarketing-oriented production and operation mode, and the competition in the power marketing market have become more intense.In addition, in the case of a year-on-year increase in the purchase price of natural gas, the price of electricity on the grid of threepower plants under the company was lowered again. According to the Notice on the Relevant Matters Concerning Reducing theOn-grid Price of Natural Gas Power Generation issued by the Guangdong Provincial Development and Reform Commission, sinceJuly 1, 2018, the on-grid price of the three power plants under the company has been lowered from 0.715 yuan per kWh to 0.665yuan per kWh (including tax), which further increased the company’s operating pressure.During the reporting period, under the guidance of the “1+5” strategic roadmap, and on the basis that a series of pioneering andinnovative initiatives being implemented since August 2017 have achieved initial successes, the company’s new leadership team ledall employees to reform, work hard, and build dreams together, strive to find a way out in the predicament and explore opportunitiesin the crisis with open mind and tenacious perseverance, took feasible and effective measures to do a good job in asset managementand internal management, made unremitting efforts to overcome the difficulties, and created conditions for the pursuit oftransformation and development. The main tasks carried out during the reporting period were as follows:
1. Paid close attention to safety and environmental protection management, always put safety at the top of enterprise managementand earnestly fulfill environmental responsibility, overcame the difficulties of old power generation equipment, achieved the goal ofsafety “five nos” throughout the year by strengthening the safety production responsibility system, innovating the safety productionsupervision mode, and implementing the whole process and all-round safety management, and the safety production indicatorsachieved the best results in more than a decade, actively responded to the call of the municipal government, carried out the“Shenzhen Blue” technical transformation project on schedule, strictly implemented the environmental protection requirements, andthe environmental index throughout the year reached the standard.2. Established four operation management centers: power sales center, fuel center, financial center and information center, realizedthe effective integration of various resources and the efficient operation of core business of the company. Among them, built amathematical model of power trading through the power sales center and elaborately and scientifically developed power tradingstrategies, which significantly enhanced the competitiveness of the company’s power marketing, and the total electric quantity ofelectricity marketing throughout the year amounted to 1.473 billion kWh. Made overall planning for the organization andcoordination of fuel procurement in the company’s system through the fuel center, strengthened the supply of natural gas to reducethe cost of natural gas procurement. Built a “shared pool of funds” through the financial center to strengthen the overall managementof funds within the company’s system, and kept up with changes in the external situation, dynamically and scientifically madefinancial analysis and calculation to provide decision-making basis for the company’s production and operation. Built a safe andconvenient basic information sharing platform through the information center to not only support the information security, but also
support and assist the operation of three business centers.3. Developed the second gas source of Nanshan Thermal Power Plant. Overcoming the pressure of time and heavy tasks, thecompany completed the construction of the technical transformation project of the natural gas terminal station of Shenzhen Gas forNanshan Thermal Power Plant in a short period of time, broadened the natural gas supply channel, and improved the stability andreliability of the gas supply, which created favorable conditions for the company to reduce the natural gas procurement cost and resistthe market challenges, and effectively improved the operational efficiency of the company’s stock assets.4. Implemented the “Shenzhen Blue” technical transformation project and related technical transformation. Through technologicaltransformation, the nitrogen oxide emission of the generator set was superior to the emission standards required by the government,which has made positive contributions to the improvement of environmental quality in Shenzhen, and at the same time kept thecompany’s power generation equipment in a healthy operation state, which provided necessary guarantees for reducing the non-stopsof the unit and for the power generation.5. Innovated the production management mechanism. Through the establishment of the production scheduling mechanism andenvironmental protection project joint on-site coordination mechanism of Nanshan Thermal Power Plant, made overall planning andcoordination for the power generation production, fuel supply and environmental sludge drying production of environmentalprotection company of Nanshan Thermal Power Plant, improved the production decision-making efficiency, and achieved the optimalsharing of production information and resources.6. Further improved and continued to implement the “military order” assessment method. Closely focused on the company’s overallstrategy, aimed at maximizing the company’s operating efficiency, closely linked the personal income with team benefits andcompany benefits together, and motivated all cadres and employees to work hard to complete and strive to outperform the annualbusiness tasks.7. Comprehensively deepen the reform of human resources. Further optimize the human resources allocation by perfecting the humanresource management mechanism and management system so that the sense of duty of the managerial staff and the employees’aggressiveness were significantly improved to establish the necessary talent base to achieve the company’s business developmentgoals.8. Attached great importance to standard management of internal control. According to the overall operation and deployment of thecompany, combined with the actual situation of the business operations, the company comprehensively teased out, reviewed andrevised and improved the various management system and main work processes, which laid a management foundation for thecompany’s efficient decision-making and rapid action and created necessary conditions for the standard operation and prevention ofinternal control risks.In 2018, the general party branch of the company took the socialism with Chinese characteristics in the new era of Xi Jinping as theguidelines, focused on the spirit of the 19
th
National Congress and the overall requirements of party building work in the new era,actively promoted the deep integration of party building and company’s operation management, and strengthened the party’sorganizational construction, ideological and political construction, institutional improvement and work style construction, activelyimplemented the requirements of comprehensively strengthening the party discipline and the relevant requirements of the partybuilding work of state-owned enterprises, incorporated the party building work into the company’s Articles of Association, andcompleted the general election of the party general branch committee, and realized that the posts of the general branch secretary andthe president were held by one person, which fully demonstrated the core leading role of the party’s leadership in the company’soperation and management.In year of 2018, the Company has achieved a revenue in operation of 1885 million Yuan, the net profit attributable to parentcompany amounted as 19.2538 million Yuan and basic EPS was 0.03 Yuan.
II. Main business analysis
1. Introduction
Found more in I. Introduction in Discussion and Analysis of the Operation
2. Revenue and cost(1) Constitute of operation revenue
In RMB
| 2018 | 2017 | Increase/decrease y-o-y | |||
| Amount | Ratio in operation revenue | Amount | Ratio in operation revenue | ||
| Total operation revenue | 1,884,937,109.00 | 100% | 2,045,766,831.74 | 100% | -7.86% |
| Industry classification | |||||
| Energy industry | 1,768,441,244.50 | 93.82% | 1,957,332,612.00 | 95.67% | -9.65% |
| Engineering service | 45,701,543.76 | 2.42% | 38,416,883.29 | 1.88% | 18.96% |
| Sludge drying | 64,698,909.32 | 3.43% | 44,384,947.49 | 2.17% | 45.77% |
| Other business | 6,095,411.42 | 0.32% | 5,632,388.96 | 0.28% | 8.22% |
| Product classification | |||||
| Electricity sales | 1,768,441,244.50 | 93.82% | 1,957,332,612.00 | 95.67% | -9.65% |
| Engineering service | 45,701,543.76 | 2.42% | 38,416,883.29 | 1.88% | 18.96% |
| Sludge drying | 64,698,909.32 | 3.43% | 44,384,947.49 | 2.17% | 45.77% |
| Other business | 6,095,411.42 | 0.32% | 5,632,388.96 | 0.28% | 8.22% |
| Region classification | |||||
| Domestic | 1,884,937,109.00 | 100.00% | 2,045,766,831.74 | 100.00% | -7.86% |
| overseas | - | - | - | - | - |
| Operating revenue | Operating cost | Gross profit ratio | Increase/decrease of operating | Increase/decrease of operating cost | Increase/decrease of gross profit |
revenue y-o-y
| revenue y-o-y | y-o-y | ratio y-o-y | ||||
| Industry classification | ||||||
| Energy industry | 1,768,441,244.50 | 1,679,314,517.30 | 5.04% | -9.65% | -7.11% | -2.59% |
| Engineering service | 45,701,543.76 | 31,319,671.15 | 31.47% | 18.96% | 7.41% | 7.37% |
| Sludge drying | 64,698,909.32 | 40,161,542.67 | 37.93% | 45.77% | 8.42% | 21.39% |
| Product classification | ||||||
| Electricity sales | 1,768,441,244.50 | 1,679,314,517.30 | 5.04% | -9.65% | -7.11% | -2.59% |
| Engineering service | 45,701,543.76 | 31,319,671.15 | 31.47% | 18.96% | 7.41% | 7.37% |
| Sludge drying | 64,698,909.32 | 40,161,542.67 | 37.93% | 45.77% | 8.42% | 21.39% |
| Region classification | ||||||
| Industries | Item | Unit | 2018 | 2017 | Increase/decrease y-o-y |
| Electric Power | Sales volume | 100 million KWH | 42.7 | 31.13 | 37.17% |
| Output | 100 million KWH | 27.97 | 31.13 | -10.15% | |
| Storage | 100 million KWH | - | - | - |
①In January 2013, the Company signed a five-year National Gas Sale Contract with Guangdong Trade Branch of CNOOC Gas andPower Group, the contract comes to an end on 31 December 2017. and in August 2017, entered into a Supplementary Agreement ofthe National Gas Sale Contract with Guangdong/Zhuhai Sales Branch of CNOOC Gas and Power Group to renew the validity periodof the above contract for one year, and the relevant contract has been completed.
②In December 2013, controlling subsidiary of the Company - Shen Nan Dian Dongguan Company, signed a five-year National GasSale Contract with Guangdong Trade Branch of CNOOC Gas and Power LTD, relevant contract has been completed .③ In May 2014, controlling subsidiary of the Company -Shen Nan Dian Dongguan Company, signed a five-year National Gas SaleContract with Zhuhai Trade Branch of CNOOC Gas and Power LTD, which is under implementation presently.
(5) Constitute of operation cost
Industry and products classification
In RMB
| Industries | Item | 2018 | 2017 | Increase/decrease y-o-y | ||
| Amount | Ratio in operation cost | Amount | Ratio in operation cost | |||
| Energy industry | Power, heat supply | 1,679,314,517.30 | 95.84% | 1,807,939,570.93 | 96.44% | -7.11% |
| Engineering service | Engineering cost | 31,319,671.15 | 1.79% | 29,158,224.56 | 1.56% | 7.41% |
| Other business | Sludge drying etc. | 41,519,138.75 | 2.37% | 37,465,193.45 | 2.00% | 10.82% |
| Products | Item | 2018 | 2017 | Increase/decrease y-o-y | ||
| Amount | Ratio in operation cost | Amount | Ratio in operation cost | |||
| Electricity sales | Power supplying | 1,679,314,517.30 | 95.84% | 1,807,939,570.93 | 96.44% | -7.11% |
| Engineering service | Engineering cost | 31,319,671.15 | 1.79% | 29,158,224.56 | 1.56% | 7.41% |
| Sludge drying | Sludge treatment | 40,161,542.67 | 2.29% | 37,041,469.83 | 1.98% | 8.42% |
| Other business | Leasing | 1,357,596.08 | 0.08% | 423,723.62 | 0.02% | 220.40% |
(7) Major changes or adjustment in business, product or service of the Company in Reporting Period
□ Applicable √ Not applicable
(8) Major sales and main suppliers
Major sales client of the Company
| Total top five clients in sales (RMB) | 1,860,551,385.99 |
| Proportion in total annual sales volume for top five clients | 98.71% |
| Serial | Name | Sales (RMB) | Proportion in total annual sales |
| 1 | Shenzhen Power Supply Bureau Co., Ltd. | 1,054,330,052.26 | 55.93% |
| 2 | Guangdong Power Grid Co., Ltd. | 715,314,991.83 | 37.95% |
| 3 | Shenzhen Municipal Water Affairs Bureau | 36,667,177.79 | 1.95% |
| 4 | China Machinery Engineering Corporation | 27,504,147.04 | 1.46% |
| 5 | Shenzhen Water Group | 26,735,017.07 | 1.42% |
| Total | -- | 1,860,551,385.99 | 98.71% |
| Total purchase amount from top five suppliers (RMB) | 1,464,984,380.81 |
| Proportion in total annual purchase amount for top five suppliers | 92.33% |
| Serial | Name | Purchases (RMB) | Proportion in total annual purchases |
| 1 | Guangdong Sales branch of China National Offshore Oil & Gas Corporation | 753,647,948.21 | 47.50% |
| 2 | Shenzhen Gas Corporation Ltd. | 388,150,548.44 | 24.46% |
| 3 | Zhuhai Sales branch of China National Offshore Oil & Gas Corporation | 150,350,760.61 | 9.48% |
| 4 | Dongguan Jiufeng NG Storage Co., Ltd. | 104,085,123.55 | 6.56% |
| 5 | Shenzhen Nan Guang Power Co., Ltd. | 68,750,000.00 | 4.33% |
| Total | -- | 1,464,984,380.81 | 92.33% |
3. Expenses
In RMB
| 2018 | 2017 | Increase/decrease y-o-y | Note of major changes | |
| Sales expense | 3,715,812.95 | 3,046,206.09 | 21.98% | Cost of dry sludge treatment from Shen Nan Dian Environment Protection Company (wholly-owned subsidiary) increased |
| Management expense | 93,529,697.87 | 99,021,102.92 | -5.55% | Reduced the expenses by cost controlling |
| Financial expense | 39,606,243.43 | 53,518,125.67 | -25.99% | Financial expense decreased from a year earlier due to the declined in loans |
| Item | 2018 | 2017 | Y-o-y changes |
| Subtotal of cash in-flow from operation activity | 2,228,506,103.32 | 2,842,226,576.52 | -21.59% |
| Subtotal of cash out-flow from operation activity | 1,991,942,942.94 | 2,645,426,720.79 | -24.70% |
| Net cash flow from operation activity | 236,563,160.38 | 196,799,855.73 | 20.20% |
| Subtotal of cash in-flow from investment activity | 284,400.00 | 100.00% | |
| Subtotal of cash out-flow from investment activity | 152,775,247.81 | 66,604,848.94 | 129.38% |
| Net cash flow from investment activity | -152,490,847.81 | -66,604,848.94 | 128.95% |
| Subtotal of cash in-flow from financing activity | 1,551,000,000.00 | 740,290,000.00 | 109.51% |
| Subtotal of cash out-flow from financing activity | 1,132,043,516.39 | 1,847,970,120.16 | -38.74% |
| Net cash flow from financing activity | 418,956,483.61 | -1,107,680,120.16 | -137.82% |
Net increased amount of cashand cash equivalent
| Net increased amount of cash and cash equivalent | 503,343,234.63 | -977,868,950.79 | -151.47% |
| Amount | Ratio in total profit | Note | Whether be sustainable (Y/N) | |
| Investment income | -2,205,628.45 | -7.75% | Income from long-term equity investment measured by equity | Y |
| Assets impairment | 385,343.65 | 1.35% | Provision for bad debts | N |
| Non-operating income | 39,264,446.03 | 138.02% | Account payable that no need to pay | N |
| Non-operating expenditure | 1,141,532.50 | 4.01% | Loss from non-current assets disposal | N |
IV. Assets and liability
1. Major changes of assets composition
In RMB
| End of2018 | End of2017 | Ratio changes | Notes of major changes | |||
| Amount | Ratio in total assets | Amount | Ratio in total assets | |||
| Monetary fund | 925,829,404.44 | 27.99% | 438,316,169.81 | 15.20% | 12.79% | Bank borrowing increased |
| Account receivable | 132,430,024.97 | 4.00% | 113,349,775.76 | 3.93% | 0.07% | The electricity income receivable from Shenzhen Power Supply Bureau increased |
| Inventory | 124,758,334.97 | 3.77% | 77,834,903.89 | 2.70% | 1.07% | The equipment of low nitrogen combustion system increased |
| Investment property | 2,606,302.71 | 0.08% | 2,802,440.31 | 0.10% | -0.02% | - |
| Long-term equity investment | 16,049,044.95 | 0.49% | 18,254,673.40 | 0.63% | -0.14% | - |
| Fix assets | 1,405,649,989.24 | 42.50% | 1,420,620,565.05 | 49.26% | -6.76% | Total assets increased in the period |
| Construction in process | 82,348,008.39 | 2.49% | 50,958,741.92 | 1.77% | 0.72% | The expenditures from low-nitrogen combustion system upgrading and cogeneration technical improvement increased |
| Short-term loans | 1,000,000,000.00 | 30.24% | 515,850,000.00 | 17.89% | 12.35% | Bank borrowing increased |
| Long-term loans | 25,940,000.00 | 0.78% | 25,940,000.00 | 0.90% | -0.12% | - |
| Amount invested (RMB) | Last period’s amount (RMB) | Changes |
| 0.00 | 1,300,000.00 | 0.00% |
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicableThe Company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable √ Not applicableThe Company has no derivatives investment in the reporting period.
5. Application of raised proceeds
□ Applicable √ Not applicableThe Company had no application of raised proceeds in the reporting period.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicableThe Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
VII. Analysis of main holding Company and stock-jointly companies
√Applicable □ Not applicableParticular about main subsidiaries and stock-jointly companies net profit over 10%In RMB
| Company name | Type | Main business | Register capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
ShenzhenNew PowerIndustrialCo., Ltd.
| Shenzhen New Power Industrial Co., Ltd. | Subsidiary | Technology development regarding to application of remaining heat (excluding restricted items) and power generation with remaining heat. Add: power generation through burning machines. | RMB 113.85 million | 187,870,629.90 | 157,884,013.68 | 401,903,866.29 | -14,492,458.68 | -9,055,748.95 |
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | Subsidiary | Sludge drying; the design and operations management of sludge treatment and disposal facilities and engineering; the technology development, technology transfer, technical advice, technical services of environmental pollution control and comprehensive utilization domain; (Except for the projects required to be | RMB 79 million | 138,768,896.83 | 111,262,274.76 | 64,698,909.32 | 20,466,326.32 | 15,523,546.78 |
approvedbeforeregistration bylaws,administrativeregulations, ordecisions andstipulation ofthe StateCouncil, therestricteditems must beapprovedbeforeoperating)
| approved before registration by laws, administrative regulations, or decisions and stipulation of the State Council, the restricted items must be approved before operating) | ||||||||
| Shenzhen Shennandian Turbine Engineering Technology Co., Ltd. | Subsidiary | Engage in the technical advisory service for the construction projects of gas-steam combined cycle power plant (station), and undertake the maintenance and overhaul of the operation equipment of gas-steam combined cycle power plant (station). Import and export of goods and technologies (excluding distribution and state monopoly commodities) | RMB 10 million | 43,198,937.89 | 27,799,037.89 | 45,701,543.76 | 9,400,410.35 | 9,515,599.73 |
| Shenzhen Server Petrochemical Supplying Co., Ltd | Subsidiary | Self-supporting or import agent business of fuel oil; trade (excluding production and storage and | RMB 53.3 million | 128,361,637.07 | 98,434,643.73 | 1,138,647.65 | 1,583,795.56 | 710,159.34 |
transportation)in diesel,lubricating oil,liquefiedpetroleum gas,natural gas,compressedgas andliquefied gas,chemicalproducts(excludingdangerouschemicals);investment,constructionand technicalsupports inliquefiedpetroleum gas,natural gasand relatedfacilities;import andexportbusinesses anddomestic tradeof goods andtechnologies(excludingfranchise,exclusivecontrol, andmonopolyproducts);leasingbusiness.Licensedprojects: fueloilwarehousingbusiness(except forrefined oil);
general freighttransport,specialtransportationof goods(containers),specialtransportationof goods(tank)
| general freight transport, special transportation of goods (containers), special transportation of goods (tank) | ||||||||
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | Subsidiary | Gas turbine power generation, waste heat power generation, power supply and heating (excluding heating pipe network), leasing of wharf and oil depots (excluding refined oil, dangerous chemicals, or flammable and explosive goods). | RMB 746.8 million | 653,058,346.46 | -94,994,875.49 | 342,354,122.68 | -32,567,118.56 | -32,577,118.56 |
| Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd | Subsidiary | Construction and operation of natural gas power stations, construction and operation of natural gas cogeneration power plants. | US $ 35.04 million | 592,982,762.52 | 98,391,400.62 | 373,748,319.27 | -11,342,218.89 | -2,135,324.42 |
| Shen Nan Energy (Singapore) Co., Ltd. | Subsidiary | Agent for oils trade and spare parts of gas turbine | US $ 0.9 million | 150,029,402.25 | 147,387,763.53 | 0 | -194,310,732.06 | -194,310,732.06 |
| CPI Jiangxi Nuclear Power | Joint stock Company | The development, construction, operation and | RMB 1167.27 million | 3,735,857,714.34 | 1,200,206,072.67 | 19,021,431.18 | 5,129,688.84 | 5,149,688.84 |
Company
| Company | management of nuclear power projects; the production electricity and related products; the operation of foreign trade (except for the import and export businesses of goods with state trading management); (except for those projects with special permission) |
Province is imminent, under the current condition that the natural gas price is high and the price of on-grid electricity has beenlowered by 0.05 yuan/kWh since July 1, 2018, the company’s existing main business is facing a more severe business situation. .(II) Summary of the company’s annual business plan for 2019In 2019, the company will continue to face the challenges of the macroeconomic situation and the external market environment underthe guidance of the “1+5” strategic roadmap, comply with the comprehensive planning of Dawan District and the development trendof Qianhai area, and overcome the difficulties faced by the operation of the stock assets, explore opportunities in a dangeroussituation, seek transformation under the predicament, work together, follow the trend, work hard, and look forward to tomorrow.In 2019, the company will focus on the following aspects:
1. Strengthen safety management and implement environmental responsibility. First, conscientiously implement the principle of“safety first, prevention first, comprehensive management”, strictly carry out the entity responsibility of safety production and thesafety production responsibility system for all employees, and further improve the safety production supervision system andguarantee system. Second, strengthen the “zero non-planned outages” high standard safety index management, implement the safetyproduction grid management, promote the safety production pre-management and process management and control, continue tostrengthen the peripheral management and dynamic assessment, and prevent all kinds of accidents. Third, build a full staff, all-roundand all-weather security patterns, strive to create an all-around security situation of production, operation, management, etc., ensurethe realization of the annual safety “five nos” and the capital chain security. Fourth, do a good job in environmental protection andstrictly control emission targets to ensure the goal of achieving a blue card in the environmental credit evaluation.2. Optimize standard operation and improve governance level. First, further improve the corporate governance structure and modernenterprise management system of listed companies, persist in managing enterprises according to law and standardize operations.Second, do a good job in information disclosure in accordance with the laws and regulations, strengthen the inside informationmanagement and conscientiously implement the insider registration system of inside information, and further improve the level ofinvestor relations management and protect the interests and the legitimate rights and interests of investors. Third, keep up withchanges in the policy situation, launch propaganda and training on relevant laws, regulations and policies in multiple channels, andstrengthen the risk awareness and legal awareness of management personnel at all levels and all employees, and further improve thelevel of legal governance and standard operation. Fourth, it is necessary to adapt to the new development situation, optimize andinnovate the system, and create a more standardized, orderly, efficient, and streamlined working mechanism and management culture.Fifth, further optimize the organizational structure, shorten the decision-making chain and improve the efficiency of operations byestablishing a flat organization and implementing intensive management.3. Strengthen the party building work and play the core role. First, improve the construction of grassroots party organizations inaccordance with the Constitution of the Communist Party of China and the Regulations on the Work of the Communist Party ofChina, and carry out the election at expiration of office terms. Second, continue to study and implement the spirit of the 19thNational Congress of the Communist Party of China, and adopt the socialism with Chinese characteristics in the new era of XiJinping as the guidelines, grasp the implementation of the responsibility system for party building, and give play to the political corerole of the party organization. Third, adhere to the “Three Meetings One Class” system, and continue to promote the “Two Studiesand One Does” and “Study strengthens the country” to make learning and education normalization and institutionalization. Fourth,enhance the core leadership of the party organization, give play to the role of the party organization as a fighting bastion, and achievethe goal of promoting business by promoting party building.4. Pay close attention to the main business and activate the stock assets. First, pay close attention to the production, operation andmanagement of the main business of power generation. Under the circumstances that the power marketization degree is deepening,further enhance the company’s power marketing capabilities, and combine with the fuel price trend to seriously study and formulatethe company’s economic power generation strategy, and strive to maximize the benefits of the main business. Second, make full useof the advantage that all power plants in the company’s system have achieved multiple gas sources, dynamically formulate thenatural gas procurement strategies based on the power plan and the trend of natural gas prices, and minimize the cost of fuelprocurement while meeting the needs of power-generating and gas-using. Third, strengthen the overall management of funds and thebudget management, adopt diversified approaches to expand financing channels, reduce financial costs, and control the risk of funds;
Fourth, further improve the company’s financial analysis and coordination management level, use scientific financial analysis toprovide basis for the company’s business decision-making, and improve the company’s economic operation level. Fifth, strengthenthe support of the environmental protection industry, strive to develop in diversified ways, and promote the social benefits of thesludge drying industry while striving to achieve the sharing of economic benefits.5. Seek opportunities for development and expand living space. First, tease out and analyze the status of stock assets, and exploreways to optimize the establishment and management. Second, carefully study relevant industrial policies, regulatory policies andindustry dynamics, and achieve effective paths of industrial transformation and upgrading through the optimization and adjustment ofequity and asset structure, and the innovation of operation and management models. Third, comply with the new normal of economicdevelopment, take advantage of the capital platform of listed companies, actively and cautiously seek new projects and developmentopportunities, explore diversified development models and transformation directions, and seek sustainable management and healthygrowth of the company.6. Improve incentive mechanism and improve work performance. The first is to further improve the remuneration and incentivemechanism, and formulate incentive targets and rewards and punishments in a targeted manner so that the limited remuneration canplay a greater incentive role and provide motivation for the company’s operation and development. The second is to continue tooptimize and implement the “military order” assessment and incentive mechanism, strengthen the target responsibility system,improve the performance management system, and promote the continuous improvement of the overall performance level. The thirdis to continue to deepen the human resources reform, continue to optimize the allocation of human resources, and strengthen theconstruction of contingent of cadres and the cultivation of reserve talents so as to make necessary talent reserves for the company’ssustainable operation and development.7. Focus on Qianhai planning and protect the company’s interests. First, it is necessary to track and study the Qianhai regionalplanning and related policy dynamics, deeply analyze the impacts and opportunities that the implementation of Qianhai planning maybring, maintain communication with relevant functional departments of Shenzhen and the Qianhai Authority, and study and formulatecoping strategies and work program. Second, carry out various tasks in accordance with the standardization requirements of listedcompanies with the participation and cooperation of legal consultants, and fulfill the necessary decision-making approval proceduresand information disclosure obligations to maximize the protection of the interests of the company and all shareholders and thelegitimate interest of employees.The business plan and related situation analysis described in this report do not constitute the company’s performance commitment toinvestors. The company reminds investors to maintain sufficient risk awareness and understand the difference between business planand performance commitment and make prudent investment decision making.(III) Possible main risks1. Main business: Since July 1, 2018, the on-grid price of the three power plants under the company has been adjusted from 0.715yuan/kWh to 0.665 yuan/kWh, and the company’s subsidiary Nanshan Thermal Power Plant is included in the marketization powergeneration subject in 2019 and will participate in the power marketing work in Guangdong Province. Under the condition that thenatural gas price is still high, the main business of power generation is in a difficult situation, and the company faces enormousoperational pressure in 2019. The company will actively communicate with relevant provincial and municipal governmentdepartments to respond the difficulties of enterprises and seek government support, and will strive to improve the profitability andoverall operating efficiency of the main business by strengthening the operating management of the stock assets. At the same time,the company will actively explore diversified business models and transformational development opportunities to create betterconditions for the company’s sustainable operation and healthy development.2. Safety production: The power generation equipment of the company’s subordinate power plants have various degrees of aging,potential malfunction and safety risks increase year by year, which make higher requirements on the equipment management andmaintenance investment, in addition, the aging problem of the company’s employees becomes increasingly obvious, so thecompany’s safety management faces big challenges. The company will strengthen the equipment inspection and maintenance work,enhance the employees’ safety education and training, intensify the safety production responsibility system, and strictly implementthe safety management system and other measures while combining with the assessments, rewards and punishment so as to raise the
awareness of safety and responsibilities among staff at all levels and ensure the production safety.3. Fuel procurement: The conflict between the price marketization of natural gas used for power generation in 9E gas turbine powerplants and the electricity selling price priced by the government cannot be resolved in the short term. Affected by many factors suchas the international situation and the gas source, the purchase price of natural gas has remained high, additionally, the twoconsecutive reductions in the price of electricity have put a lot of pressure on the company’s production and operation; with theupcoming spot trading in the electricity market in Guangdong Province, the uncertainty of the company’s power generation plan willfurther increase, and there are conflicts with the planning required by the fuel purchase, which may lead to the case that the gasvolume in the contract cannot be fully delivered, or there may be cases that the contract gas volume cannot meet the supply. Thecompany will continue to take advantage of the scale procurement and the regulatory functions of multi-gas sources, and do itsutmost to reduce the cost of natural gas procurement while ensuring it meets the power production needs.4. Land of Nanshan Power Plant: The Comprehensive Planning of China (Guangdong) Pilot Free Trade Zone Shenzhen QianhaiShekou Area and the Surrounding Area of Big and Small Nanshan issued by the Urban Planning and Land Resources Committee ofShenzhen at the end of 2018 and the Guangdong, Hong Kong and Macao Dawan District Development Plan issued by the StateCouncil of the People’s Republic of China in February 2019 respectively include the contents of “accelerating the relocation ofYueliangwan Power Plant and Nanshan Thermal Power Plant” and “accelerating the development and construction of ShenzhenQianhai, Guangzhou Nansha, Zhuhai Hengqin and other major platforms”. The company will closely maintain communication withthe relevant functional departments of Shenzhen and Qianhai Authority, actively follow up the progress of the implementation ofrelevant government plans, and work closely with legal counsel to study the related situation of the land of Nanshan Thermal PowerPlant, study and formulate coping strategies and work plans, and do their best to safeguard the legitimate rights and interests of listedcompanies and all shareholders.
The company reminds investors to pay attention to the above-mentioned major risks and other risks that the company may face andmake prudent and rational investment decisions.
X. Reception of research, communication and interview
1. In the report period, reception of research, communication and interview
√Applicable □ Not applicable
| Time | Way | Type | Basic situation index of investigation |
| 28 March 2018 | Field research | Individual （10） | Continuous operation of the Company, relevant lands issues of Nanshan Power Factory and future development ideas etc. no material required |
| 26 December 2018 | Field research | Individual （9） | Continuous operation of the Company, relevant lands issues of Nanshan Power Factory and future development ideas etc. no material required |
| Jan.-Dec. 2018 | Reply on interaction easily | Individual （30） | Continuous operation of the Company, relevant lands issues of Nanshan Power Factory and future development ideas |
etc. Written reply
| etc. Written reply | ||||
| Jan.-Dec. 2018 | Telephoning | Individual （Dozens of times） | Continuous operation of the Company, relevant lands issues of Nanshan Power Factory and future development ideas etc. no material required | |
| Reception (times) | 32( telephone and written communication excluded） | |||
| Number of hospitality | 0 | |||
| Number of individual reception | 49 | |||
| Number of other reception | 0 | |||
| Disclosed, released or let out major undisclosed information | N | |||
Section V. Important Events
I. Profit distribution plan of common stock and capitalizing of common reserves plan
Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy duringthe Reporting Period□ Applicable √ Not applicableProfit distribution plan (pre-plan) of common stock and capitalizing of common reserves plan (pre-plan) in latest three years(including the reporting period)1. In 2016, audited by Ruihua Certified Public Accounts (Engagement Partner) , the net profit attributable to shareholders of listedCompany for year of 2016 amounting as RMB 1,306,694,835.46. The Company has no plans of surplus accumulation fund accrual,no profit distribution plan and capitalizing of common reserves either. (For details, please refer to the announcement of the 10
th
session of the 7
th
BOD (No.: 2017-007) published on China Securities Journal, Securities Times, Hong Kong Commercial Daily andJuchao information website dated 28 March 2017.)2. In 2017, audited by Ruihua Certified Public Accounts (Engagement Partner) , the net profit attributable to shareholders of listedCompany for year of 2017 amounting as RMB 15,904,182.47. The Company has no plans of surplus accumulation fund accrual, noprofit distribution plan and capitalizing of common reserves either. (For details, please refer to the announcement of the 2
nd
session of
th
BOD (No.: 2018-003) published on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchaoinformation website dated 22 March 2018.)3. In 2018, audited by Ruihua Certified Public Accounts (Engagement Partner) , the net profit attributable to shareholders of listedCompany for year of 2018 amounting as RMB 19,253,766.12. The Company has no plans of surplus accumulation fund accrual, noprofit distribution plan and capitalizing of common reserves either. (For details, please refer to the announcement of the 4
th
session of
th
BOD (No.: 2019-008) published on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchaoinformation website dated 28 March 2019.)
Cash dividend of common stock in latest three years (including the reporting period)
In RMB
| Year for bonus shares | Amount for cash bonus (tax included) | Net profit attributable to common stock shareholders of listed company in consolidation statement for bonus year | Ratio of the cash bonus in net profit attributable to common stock shareholders of listed company contained in consolidation statement | Proportion for cash bonus by other ways(i.e. share buy-backs) | Ratio of the cash bonus by other ways in net profit attributable to common stock shareholders of listed company contained in consolidation statement | Total cash bonus (including other ways) | Ratio of the total cash bonus (other ways included) in net profit attributable to common stock shareholders of listed company contained in consolidation statement |
| 2018 | 0.00 | 19,253,766.12 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
2017
| 2017 | 0.00 | 15,904,182.47 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
| 2016 | 0.00 | 1,306,694,835.46 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
| The reason that why the revenues and profits distributed for common stock holder from the parent company are positive during reporting period, but the cash bonus distribution plan of common stock is not proposed | The usage and using plan of undistributed profit |
| According to the Article 197 of the Article of Association concerning the profit distribution policy: (I)The company shall carry out sustainable and stable profit distribution policy, comprehensively taking reasonable return on investment of the investors and the long-term development of the company into consideration. The profit distribution of the Company shall not exceed the cumulative profits available for distribution, shall not damage the on-going business capability, and shall adhere to principle of distribution in doctrine of legal sequence and shall not be distributed if deficit not yet made up. (II) . … (III) The condition of cash bonus 1. The annual and semi-annual distributive profits are positive and the cash flow is abundant, and the cash bonus shall not affect the on-going business and operation of the Company. 2. … In line with the Rules of the Company, combined with analysis to the operation situation of company itself, the Company was absence of the conditions for profit distribution for the year of 2018, the reasons as below: In 2018, the company continued to follow the “1+5” strategic roadmap and implemented a series of operation and management innovation initiatives. We controlled the cost of power generation fuel in the company’s system to the limit by developing fuel supply channels, maximized the marketing revenue of power market by strengthening the economic operation management of the main business of electric power and by formulating the power marketing strategies; realized the year-on-year growth of non-electrical business by taking serious measures to the operating management of non-electrical business, thus achieved a net profit of RMB 19,253,800 belonging to the shareholders of listed companies. However, due to the adverse factors such as the reduction of on-grid electricity, lowering of electricity prices and | We still have huge pressure in operation thought the Company achieved earnings in 2018. Therefore, the retained profit 679,429,935.81 Yuan will supplying the current funds and using for routine operation in order to achieved the business target |
rising fuel prices, the company’s main business incomedecreased on a year-on-year basis, and the company still facesdifficulties in continuing operations. In 2019, with theacceleration of power market-oriented reform, Nanshan ThermalPower Plant will participate in the power market transaction inGuangdong Province, in addition, the spot trading of the powermarket in Guangdong Province will be implemented soon, underthe current unfavorable conditions of high natural gas prices andreduction of on-grid electricity prices, the company will faceeven more severe business situation. In 2019, the company willcontinue to take the overall goal of “turning losses and getting ridof poverty, transforming development, and deepening reforms”as the guidelines, do a good job in the management of stockassets, actively seek effective ways to achieve healthy andsustainable development, and continue to work hard tothoroughly get rid of business difficulties.The Company is still faced with great operation pressure, so thecompany is unable to meet the requirements on the profitdistribution condition made in the Article of Association.Therefore, the Company shall not distribute profits for the yearof 2018.
rising fuel prices, the company’s main business incomedecreased on a year-on-year basis, and the company still facesdifficulties in continuing operations. In 2019, with theacceleration of power market-oriented reform, Nanshan ThermalPower Plant will participate in the power market transaction inGuangdong Province, in addition, the spot trading of the powermarket in Guangdong Province will be implemented soon, underthe current unfavorable conditions of high natural gas prices andreduction of on-grid electricity prices, the company will faceeven more severe business situation. In 2019, the company willcontinue to take the overall goal of “turning losses and getting ridof poverty, transforming development, and deepening reforms”as the guidelines, do a good job in the management of stockassets, actively seek effective ways to achieve healthy andsustainable development, and continue to work hard tothoroughly get rid of business difficulties.The Company is still faced with great operation pressure, so thecompany is unable to meet the requirements on the profitdistribution condition made in the Article of Association.Therefore, the Company shall not distribute profits for the yearof 2018.
II. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicableThe Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either forthe year
III. Implementation of commitment
1. Commitments that the actual controller, shareholders, related parties, acquirer and the Company havefulfilled during the reporting period and have not yet fulfilled by the end of reporting period
□Applicable √Not applicableThere was no commitments that the actual controller, shareholders, related parties, acquirer and the Company have fulfilled duringthe reporting period and have not yet fulfilled by the end of the reporting period
2. Concerning assets or project of the Company, which has profit forecast, and reporting period still inforecasting period, explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
IV. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicableNo non-operational fund occupation from controlling shareholders and its related party in period.
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors(if applicable) for “Modified Audit Report” issued by CPA
□ Applicable √ Not applicable
VI. Particulars about the changes in aspect of accounting policy, estimates and calculationmethod compared with the financial report of last year
√ Applicable □ Not applicableChange of accounting policies arising from adoption of new Business Accounting Standards and amendment on other laws andregulationsThe Notice of the Ministry of Finance on Revising and Printing the Format of Financial Statements for General Enterprises in 2018(CK [2018] No.15)(hereinafter referred to as New Format of Financial Statement) was issued on 15 June 2018 by Ministry ofFinance. The New Format of Financial Statement mainly consolidates and presents some items in the balance sheet. The R&Dexpenses“ originally under the list of “Administrative expenses”in Profit Statement will present independently, new item of “R&Dexpenses” newly presenting the expenses occurred during the research and development in Company.In accordance with the Accounting Standards for Business Enterprises No. 30 - Presentation of Financial Statements and otherrelevant regulations, the Company adopted the retrospective adjustment method for this accounting policy change, and thecomparative financial statements of 2018 & 2017 have been re-stated. There is no impact on the 2017 annual consolidated financialstatements or on the profit and loss items related to the parent company’s financial statements.
VII. Major accounting errors within reporting period that needs retrospective restatement
□ Applicable √ Not applicableNo major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
VIII. Compare with last year’s financial report; explain changes in consolidation statement’sscope
□ Applicable √ Not applicableNo changes in consolidation statement scope during the period
IX. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
| Name of domestic accounting firm | Ruihua Certified Public Accounts (Engagement Partner) |
| Remuneration for domestic accounting firm (in 10 thousand Yuan) | 90 |
| Continuous life of auditing service for domestic accounting firm | 6 |
| Name of domestic CPA | Zhang Liping, Huang Shaoqin |
| Continuous life of auditing service for domestic CPA | 3 |
XII. Significant lawsuits and arbitration of the Company
□ Applicable √ Not applicableNo significant lawsuits and arbitration occurred in the period
XIII. Penalty and rectification
□ Applicable √ Not applicableNo penalty and rectification for the Company in reporting period.
XIV. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XV. Implementation of the Company’s stock incentive plan, employee stock ownership planor other employee incentives
□ Applicable √ Not applicableThe Company has no equity incentive plan, employee stock ownership plans or other employee incentives.
XVI. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicableThe Company had no related transaction with routine operation concerned in the reporting period.
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicableNo related transactions by assets acquisition and sold for the Company in reporting period.
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicableNo main related transactions of mutual investment outside for the Company in reporting period.
4. Contact of related credit and debt
□ Applicable √ Not applicableContact of related credit and debt without operational concerned√Yes □NoClaim receivable from related party
Related
party
| Related party | Relationship | Causes | Whether has non-business capital occupying or not | Balance at period-begin (10 thousand Yuan) | Current newly added (10 thousand Yuan) | Current recovery (10 thousand Yuan) | Interest rate | Current interest (10 thousand Yuan) | Ending balance (10 thousand Yuan) |
| Shen Nan Dian Environment Protection Company | Subsidiary | Routine current account | N | 1,275.39 | 1,137.67 | 1,842.71 | - | - | 570.35 |
| Shen Nan Dian Dongguan Company | Subsidiary | Routine current account | N | 28,809.47 | 43,780 | 30,920.69 | 5.20% | 1,921.7 | 43,590.48 |
| Shen Nan Dian Zhongshan Company | Subsidiary | Routine current account | N | 60,793.38 | 26,247.54 | 30,195.09 | 5.20% | 3,275.13 | 60,120.96 |
| Shen Nan Dian Engineering Company | Subsidiary | Routine current account | N | 134.96 | 221.95 | 134.96 | - | - | 221.95 |
| Singapore Company | Subsidiary | Routine current account | N | 147.71 | 4.48 | - | - | - | 152.19 |
| Influence on business performance and financial status of the Company from related creditor’s rights | Current assets 134.9502 million Yuan increased in the Period | ||||||||
| Related party | Relationship | Causes | Balance at period-begin (10 thousand Yuan) | Current newly added (10 thousand Yuan) | Repayment amount in the period (10 thousand Yuan) | Interest rate | Current interest (10 thousand Yuan) | Ending balance (10 thousand Yuan) |
| New Power Company | Subsidiary | Routine current | 6,380.34 | 72,948.34 | 74,248.46 | - | - | 5,080.21 |
account
| account | ||||||||
| Server Company | Subsidiary | Routine current account | 7,000 | - | 277.86 | 3.92% | 277.86 | 7,000 |
| Syndisome Company | Subsidiary | Routine current account | 361.77 | 45.15 | 26.39 | - | - | 380.54 |
| Influence on business performance and financial status of the Company from related debts | Current liability -12.8136 million Yuan increased in the Period | |||||||
(1) Guarantees
In 10 thousand Yuan
| Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries) | ||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening (Date of signing agreement) | Actual guarantee limit | Guarantee type | Guarantee term | Implemented (Y/N) | Guarantee for related party (Y/N) |
| Total approving external guarantee in report period (A1) | 0 | Total actual occurred external guarantee in report period (A2) | 0 | |||||
| Total approved external guarantee at the end of report period ( A3) | 0 | Total actual balance of external guarantee at the end of report period (A4) | 0 | |||||
| Guarantee of the Company for the subsidiaries | ||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening (Date of signing agreement) | Actual guarantee limit | Guarantee type | Guarantee term | Implemented (Y/N) | Guarantee for related party (Y/N) |
| Shen Nan Dian Zhongshan Company | 28 March 2017 | 4,400 | 27 May 2017 | 2,594 | General assurance | 5-year | N | Y |
| Shen Nan Dian Zhongshan Company | 22 March 2018 | 5,000 | 9 July 2018 | 1,034 | General assurance | One year | N | Y |
| Shen Nan Dian Zhongshan Company | 22 March 2018 | 20,000 | 29 Dec. 2018 | 10,000 | General assurance | One year | N | Y |
| Shen Nan Dian Dongguan Company | 28 March 2017 | 10,000 | 25 July 2017 | 0 | General assurance | 2-year | N | Y |
| Shen Nan Dian Dongguan Company | 22 March 2018 | 12,000 | 3 July 2018 | 0 | General assurance | One year | N | Y |
| Shen Nan Dian Dongguan Company | 22 March 2018 | 4,000 | 24 Dec. 2018 | 4,000 | General assurance | One year | N | Y |
| Total amount of approving guarantee for subsidiaries in report | 41,000 | Total amount of actual occurred guarantee for subsidiaries in report period | 15,034 | |||||
period (B1)
| period (B1) | (B2) | |||||||
| Total amount of approved guarantee for subsidiaries at the end of reporting period (B3) | 55,400 | Total balance of actual guarantee for subsidiaries at the end of reporting period (B4) | 17,628 | |||||
| Guarantee of the subsidiary for the subsidiaries | ||||||||
| Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening (Date of signing agreement) | Actual guarantee limit | Guarantee type | Guarantee term | Implemented (Y/N) | Guarantee for related party (Y/N) |
| Total amount of approving guarantee for subsidiaries in report period (C1) | 0 | Total amount of actual occurred guarantee for subsidiaries in report period (C2) | 0 | |||||
| Total amount of approved guarantee for subsidiaries at the end of reporting period (C3) | 0 | Total balance of actual guarantee for subsidiaries at the end of reporting period (C4) | 0 | |||||
| Total amount of guarantee of the Company (total of three above-mentioned guarantee) | ||||||||
| Total amount of approving guarantee in report period (A1+B1+C1) | 41,000 | Total amount of actual occurred guarantee in report period (A2+B2+C2) | 15,034 | |||||
| Total amount of approved guarantee at the end of report period (A3+B3+C3) | 55,400 | Total balance of actual guarantee at the end of report period (A4+B4+C4) | 17,628 | |||||
| The proportion of the total amount of actually guarantee in the net assets of the Company (that is A4+ B4+C4) | 8.91% | |||||||
| Including: | ||||||||
| Amount of guarantee for shareholders, actual controller and its related parties (D) | 0 | |||||||
| The debts guarantee amount provided for the guaranteed parties whose assets-liability ratio exceed 70% directly or indirectly (E) | 17,628 | |||||||
| Proportion of total amount of guarantee in net assets of the Company exceed 50% (F) | 0 | |||||||
| Total amount of the aforesaid three guarantees (D+E+F) | 17,628 | |||||||
| Explanations on possibly bearing joint and several liquidating | N/A | |||||||
responsibilities for undue guarantees (if applicable)
| responsibilities for undue guarantees (if applicable) | |
| Explanations on external guarantee against regulated procedures (if applicable) | N/A |
| The name of the contracting company | The name of the contracted company | Contract object | The date of signature of the contract | The book value of the assets involved in the contract(RMB’0000)(if any) | The assessed value of the assets involved in the contract(RMB’0000)(if any) | Name of the evaluation organization(if any) | The base date evaluation (if any) | Pricing principles | Bargain price(RMB’0000) | Whether connected transaction | Incidence relation | The performance by the end of the term | The date of disclosure | The index of disclosure |
| The Company | Guangdong Trade Branch of CNOOC Gas and Power | Natural Gas | The master agreement signed on 15 | N/A | Composed of natural gas prices, | Composed of natural gas prices, the cost | N | Not applicable | Relevant contract has been compl | Released on 15 Dec. 2012 and | Notice No.: 2012-054 and 2017-054. The |
Group,Guangdong/ZhuhaiSalesBranch ofCNOOCGas andPowerGroup
| Group, Guangdong/Zhuhai Sales Branch of CNOOC Gas and Power Group | Jan. 2013 and runs until 31 Dec. 2017. The two parties entered into a supplemental agreement on 22 Aug. 2017, and renewing the validity of the master agreement for one year | the cost of integrated services and tax | of integrated services and tax | eted | on 22 Aug. 2017 | “Notice of Purchasing Natural Gas” and “Proposal of Gas Sales Contract Renewal” released on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website | ||||||||
| Shen Nan Dian Dongguan Company | Guangdong Trade Branch of CNOOC Gas and Power Group | Natural Gas | 21 Dec. 2013 | N/A | Composed of natural gas prices, the cost of integrated | Composed of natural gas prices, the cost of integrated service | N | Not applicable | Relevant contract has been completed | Released on 30 Nov. 2013 | Notice of Major Contract (Notice No.: 2013-044) release |
services andtax
| services and tax | s and tax | d on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website | ||||||||||||
| Shen Nan Dian Zhongshan Company | Zhuhai Trade Branch of CNOOC Gas and Power Group | Natural Gas | 31 May 2014 | N/A | Composed of natural gas prices, the cost of integrated services and tax | Composed of natural gas prices, the cost of integrated services and tax | N | Not applicable | The relevant contract is now in operation | Released on 25 April 2014 | Notice of Major Contract (Notice No.: 2014-030) released on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website |
TheCompany,NewPowerCompany
| The Company, New Power Company | Shenzhen Gas Corporation Ltd. | Natural Gas | 14 May 2018 | N/A | The contract is a framework agreement, price of the NG will decide through consultation by supplemental agreement between the two parties | The contract is a framework agreement, price of the NG will decide through consultation by supplemental agreement between the two parties | N | Not applicable | The relevant contract is now in operation | Failure to meet specific disclosure requirements |
2. Standardized operation: The company improved and revised eight corporate governance systems and more than twenty basic
management systems and related business processes of the Articles of Association and Rule of Procedure of Shareholders’ Meetingby combining the changes in relevant laws and regulations and its own operation, management and development needs. At the sametime, continued to strengthen the overall budget management, continued to optimize the risk management and internal control,further strengthened internal audit and special auditing effort, timely took effective measures to solve the discovered problems, andstrive to improve the company’s decision-making efficiency and standardized management.
3. Security Management: we seriously in line with the Law on Safety in Production and relevant laws and regulations, and the rulesof “same responsibility of the Party & Government, double duties, concerted efforts and negligence of duty”;established andperfected comprehensive safety management organization network and safety management system; Strengthened the all-round safetymanagement concept and safety awareness at all levels, and strengthened the “zero non-stop”, dynamic assessment and terminalmanagement through innovative safety production supervision mode, which strictly prevented all kinds of accidents, and realized the“jumping” progress in safety production indicators and the company’s best safety management achievements in the past ten years.
4. Environment protection: the Company has stringently complied with the national and local environment laws and regulations andconsistently adhered to the policy of eco-friendly power generation and cyclic economic development. Our works relating toenvironment protection were effectively implemented with satisfaction of all the emission standards. It completed the task set forreduction of pollutant discharge, therefore, no environment pollution accident occurred. Besides, there was no effective complaintregarding environment pollution and no administrative punishment in connection with the same. The Company was rated as the “bluerate” and above rate at the annual environment credit rating for year of 2017. All the working targets for environment issues havebeen achieved for the year. In 2018, the company actively implemented the “Shenzhen Blue” sustainable action plan formulated bythe Shenzhen Municipal Government, and completed the upgrading and transformation of the low-nitrogen combustion system of the#10 gas turbine and #3 gas turbine of Nanshan Thermal Power Plant within the prescribed time limit. The nitrogen oxide emissionvalue after transformation was superior to the 15mg/m3 emission standard required by the government, which has made positivecontributions to the improvement of ambient air quality in Shenzhen. In addition, under the severe situation that the centralenvironmental protection inspection team implemented the strict “looking back” supervision and some non-standard sludge treatmententerprises were exposed and discontinued successively, the company’s subordinate Shennandian Environmental ProtectionCompany maintained the normal production due to the strict implementation of environmental management, which greatly eased thesludge disposal pressure in Shenzhen and fulfilled its social responsibilities to the utmost extent.5. Care for employees:The company strictly abide by the Labor Law, Labor Contract Law and other relevant laws and regulations,listened to the employees’ opinions on the employees’ labor contract, work attendance, vacation, welfare and other human resourcemanagement system concerning the employees’ vital interests through the staff representative meeting so as to protect the legitimaterights and interests of employees in accordance with the law; deepened the human resources reform, further optimized the allocationof human resources, and provided platforms for more grassroots employees to grow professionally and exert value; improved theoverall quality and professional level of employees at all levels through diversified training; actively advocated the cultural conceptof “passionate work, happy life”, strive to create a harmonious and enterprising working atmosphere, and strengthened the corporatecohesion and centripetal force by strengthening corporate culture propaganda; cared for employees’ physical and mental health,organized useful cultural and sports activities, and carried out a series of heart-winning projects which improved the happiness andsatisfaction of employees, and actively built a harmonious labor-management relations.
2. Fulfill the precise social responsibility for poverty alleviation
Nil
3. Environmental protection
(1) The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protectiondepartmentYes
| Enterprise or subsidiary | Main pollutant and features | Way of discharge | Number of discharge outlet | Distribution of the discharge outlet | Emission concentration | Pollutant discharge standard implemented | Total discharge | Total approved emissions | Excessive emission |
| Shenzhen Nanshan Power Co., Ltd. | Oxynitride | Concentrate emission from boiler uptake | 2 | In plant area of Nanshan Power Factory | <15 mg/m3 | Implementation of “Shenzhen Blue” emission standard<15 mg/m3 | 260.4 ton | 457.5 ton | 0 |
| Shenzhen New Power Industrial Co., Ltd. | Oxynitride | Concentrate emission from boiler uptake | 1 | In plant area of Nanshan Power Factory | <15 mg/m3 | Implementation of “Shenzhen Blue” emission standard<15 mg/m3 | 130.2 ton | 228.75 ton | 0 |
| Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd | Oxynitride | Concentrate emission from boiler uptake | 2 | In plant area of Gaobu Power Plant | <25 mg/m3 | GB13223 | 69.2 ton | 438.9 ton | 0 |
| Shen Nan Dian (Zhongshan) Power Co., Ltd. | Oxynitride | Concentrate emission from boiler uptake | 2 | In plant area of Nanlang Power Plant | <25 mg/m3 | GB13223 | 61.83 ton | 324.50 ton | 0 |
Emergency plan for abrupt environmental accidentsThe plans have file in department of Environmental Protection of Guangdong province and corresponding environmental protectionbureau
Environmental self-monitoring planWe have prepared the plans of self-monitoring and approved by Environmental Protection Bureau; monitoring data will release onEnvironmental Protection Website on time
Other information need for releasedNil
Relevant environmental protection informationNil
XIX. Other important events
√Applicable □ Not applicable1. T102-0011, T102-0155 land related matters. During the reporting period, the Company closely tracked the situation of thecomprehensive planning of the Qianhai Shekou Free Trade Zone and the work dynamics of the Shenzhen Municipal Government andother relevant departments.In March 2018, the company and the special legal consultants gave the reply to the Notice of PublicParticipation in the Social Stability Risk Analysis of the Yueliangwan Avenue Rapid Reconstruction Project issued by the ShenzhenMunicipal Transportation Committee, which proposed comments and suggestions on the significant impact that the projectconstruction may make on the company and its subsidiaries. In view of the fact that the company did not receive any reply about theStatement of Objections to the Comprehensive Planning of Qianhai Shekou Free Trade Zone submitted by the company on August 10,2017 to the Urban Planning and Land Resources Committee of Shenzhen, in April 2018, the company once again submitted anapplication for revising the comprehensive planning of Qianhai Shekou Area to the Urban Planning and Land Resources Committeeof Shenzhen, reaffirming the possible impact of the planning on the company, and proposing to modify the contents involving thecompany’s land in the planning. In August 2018, the Urban Planning and Land Resources Committee of Shenzhen announced theLand Preparation Plan of Shenzhen in 2018, the 2018 annual land preparation plan of Qianhai cooperation zone still included theland parcel belonging to the company’s subordinate Nanshan Thermal Power Plant. In December 2018, the Urban Planning and LandResources Committee of Shenzhen published the Comprehensive Planning of China (Guangdong) Pilot Free Trade Zone ShenzhenQianhai Shekou Area and the Surrounding Area of Big and Small Nanshan (Hereinafter referred to as “Comprehensive Planning”) onits other public numbers. The Article 92 of the Comprehensive Planning includes “accelerating the relocation of Yueliangwan PowerPlant and Nanshan Thermal Power Plant” and other contents. The company timely fulfilled its information disclosure obligationsafter obtaining the above information through public channels of Urban Planning and Land Resources Committee of Shenzhen. Thecompany will continue to actively carry out relevant work with the participation and cooperation of legal counsel, closely track thecomprehensive planning of the Qianhai Shekou Free Trade Zone, do its utmost to safeguard the rights and interests of the company’sshareholders and employees, and fulfill the information disclosure obligations according to law. (For details, please refer to theNotice on the Land Preparation Plan of Shenzhen in 2018 Published by the Urban Planning and Land Resources Committee ofShenzhen and the Notice on the Comprehensive Planning of China (Guangdong) Pilot Free Trade Zone Shenzhen Qianhai ShekouArea and the Surrounding Area of Big and Small Nanshan Published by the Urban Planning and Land Resources Committee ofShenzhen (Notice No.: 2018-022 & 2018-034) disclosed on China Securities Journal, Securities Times, Hong Kong Commercial
Daily and www.cninfo.com.cn by the company.
2. “Shenzhen Blue” technical improvement: In April 2018, the Shenzhen Municipal Government issued the Notice of the GeneralOffice of the Shenzhen Municipal People’s Government on Printing and Distributing the “Shenzhen Blue” Sustainable Action Plan in2018, and clarified that the whole city’s seven gas-fired power plants would be supervised and urged to respectively complete theupgrade of low-nitrogen burners or the transformation of flue gas denitrification of more than one gas turbine set before October 31,2018. From November 1
st
, 2018, the gas turbine sets that have not completed low-nitrogen burner upgrade or flue gas denitrificationtransformation should not be dispatched to generate electricity. Thereafter, in September 2018, the Shenzhen Human SettlementCommittee issued the Notice of the Municipal Human Settlement Committee and the Municipal Finance Committee on Printing andDistributing the “Shenzhen Atmospheric Environmental Quality Improvement Subsidy Measures (2018-2020)”, and clarified thesubsidy standards for power generation companies. According to the above documents, the company completed the upgrade andtransformation of the low-nitrogen burners of two 9E gas turbine sets respectively from Nanshan Thermal Power Plant and ShenzhenNew Power Industrial Co., Ltd. before October 31
st
, the nitrogen oxide emission value after transformation is superior to the emissionstandard of 15mg/m3 required by the government. The upgrade and transformation project of the remaining one 9E gas-turbine set inNanshan Thermal Power Plant is being implemented. At present, the first batch of subsidies of the Shenzhen Human SettlementCommittee amounting to RMB 32.88 million has been transferred, and the company will actively follow up the implementation ofthe government’s follow-up subsidies. (For details, please refer to the Notice About Received the Notification of ShenzhenMunicipal People’s Government on Printing and Issuing the 2018 “Shenzhen Blue” Sustainable Action Plan and the “ShenzhenAtmospheric Environmental Quality Improvement Subsidy Measures (2018-2020)” (Notice No.: 2018-015; 2018-028) that theCompany disclosed on China Securities Journal, Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn).
3. Natural gas power generation on-grid price adjustment. During the reporting period, according to the Notice on Reducing theOn-grid Price of Natural Gas Power Generation issued by the Guangdong Provincial Development and Reform Commission, sinceJuly 1, 2018, the on-grid prices of some natural gas power generation enterprises in the province have been reduced. The on-gridprices of the three power plants under the company were adjusted from 0.715 yuan/kWh to 0.665 yuan/kWh, which exertedtremendous pressure on the company’s main business operations, the company will do its utmost to reduce the negative effects ofon-grid prices reduction on the company by further strengthening the management of power assets, paying close attention to themanagement of stock assets, and exploring diversified business management models. (For details, please refer to the Notice onAdjustment for On-grid Price of Natural Gas (Notice No.: 2018-027) that the Company disclosed on China Securities Journal,Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn).
4. Termination of the planned issue of medium-term notes and corporate bonds. During the reporting period, as the registrationdocuments of planned issue of medium-term notes with a total amount of RMB 500 million and planned issue of corporate bonds notexceeding RMB 2 billion (including RMB 2 billion) that the company made an application for registration to the NationalAssociation of Financial Market Institutional Investors had reached the expiration date, the planned issue was terminated. (For details,please refer to the “Notice on Issue of Medium-Term Notes” and “Notice on Scheme of Non-Public Offering of Corporate Bonds”(Notice No.: 2015-062; 2015-063) that the Company disclosed on China Securities Journal, Securities Times, Hong KongCommercial Daily and www.cninfo.com.cn dated 25 Aug. 2015)In addition to the above matters, the construction-aid project for Xinjiang in Guangdong Province participated in 2013 and thecollection for refunds of “technical reform benefit fund” are no further progress or changes in the period
XX. Significant event of subsidiary of the Company
□ Applicable √Not applicable
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
| Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
| Amount | Proportion | New shares issued | Bonus shares | Capitalization of public reserve | Others | Subtotal | Amount | Proportion | |
| I. Restricted shares | 14,139 | 0.0023% | 14,139 | 0.0023% | |||||
| 3. Other domestic shares | 14,139 | 0.0023% | 14,139 | 0.0023% | |||||
| Domestic natural person’s shares | 14,139 | 0.0023% | 14,139 | 0.0023% | |||||
| II. Unrestricted shares | 602,748,457 | 99.9977% | 602,748,458 | 99.9977% | |||||
| 1. RMB Ordinary shares | 338,894,011 | 56.22% | 338,894,011 | 56.22% | |||||
| 2. Domestically listed foreign shares | 263,854,446 | 43.77% | 263,854,446 | 43.77% | |||||
| III. Total shares | 602,762,596 | 100.00% | 602,762,596 | 100.00% | |||||
Other information necessary to disclose or need to disclosed under requirement from security regulators□ Applicable √ Not applicable
2. Changes of restricted shares
□ Applicable √ Not applicable
II. Securities issuance and listing
1. Security offering (without preferred stock) in Reporting Period
□ Applicable √ Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets andliability structure
□ Applicable √ Not applicable
3. Existing internal staff shares
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
In Share
| Total common stock shareholders in reporting period-end | 30,799 | Total common stock shareholders at end of last month before annual report disclosed | 32,518 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) (see note 8) | 0 | Total preference shareholders with voting rights recovered at end of last month before annual report disclosed (if applicable) (see note 8) | 0 | ||||||
| Particulars about shares held above 5% by shareholders or top ten shareholders | |||||||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Total shareholders at the end of report period | Changes in report period | Amount of restricted shares held | Amount of un-restricted shares held | Number of share pledged/frozen | ||||||
| State of share | Amount | ||||||||||||
HONG KONGNAM HOI(INTERNATIONAL) LTD.
| HONG KONG NAM HOI (INTERNATIONAL) LTD. | Overseas legal person | 15.28% | 92,123,248 | 92,123,248 | ||||
| Shenzhen Guangju Industrial Co., Ltd. | State-owned legal person | 12.22% | 73,666,824 | 73,666,824 | ||||
| Shenzhen Energy Co., Ltd. | State-owned legal person | 10.80% | 65,106,130 | 65,106,130 | ||||
| BOCI SECURITIES LIMITED | Overseas legal person | 1.43% | 8,640,627 | 8,640,627 | ||||
| Zeng Ying | Domestic nature person | 1.24% | 7,484,000 | 7,484,000 | ||||
| China Merchants Securities H.K. Co., Ltd. | State-owned legal person | 0.97% | 5,834,669 | 5,834,669 | ||||
| Meiyi Investment Property Co., Ltd. | Domestic non state legal person | 0.77% | 4,616,000 | 4,616,000 | ||||
| Liu Fang | Domestic nature person | 0.67% | 4,035,773 | 4,035,773 | ||||
| Li Baoqin | Domestic nature person | 0.66% | 3,972,451 | 3,972,451 | ||||
| Chen Qin | Domestic nature person | 0.65% | 3,926,894 | 3,926,894 | ||||
| Strategy investors or general corporation comes top 10 shareholders due to rights issue (if applicable) (see note3) | N/A | |||||||
| Explanation on associated relationship among the aforesaid shareholders | 1. 100% equity of HONG KONG NAM HOI (INTERNATIONAL) LIMITED100% held by Shenzhen Energy Co., Ltd.; 2. The Company is unknown whether there exists associated relationship or belongs to the consistent actor among the other shareholders. | |||||||
| Particular about top ten shareholders with un-restrict shares held | ||||||||
| Shareholders’ name | Amount of un-restrict shares held at Period-end | Type of shares | ||||||
| Type | Amount | |||||||
| HONG KONG NAM HOI (INTERNATIONAL) LTD. | 92,123,248 | Domestically listed foreign shares | 92,123,248 | |||||
| Shenzhen Guangju Industrial Co., Ltd. | 73,666,824 | RMB common | 73,666,824 | |||||
shares
| shares | |||
| Shenzhen Energy Co., Ltd. | 65,106,130 | RMB common shares | 65,106,130 |
| BOCI SECURITIES LIMITED | 8,640,627 | Domestically listed foreign shares | 8,640,627 |
| Zeng Ying | 7,484,000 | Domestically listed foreign shares | 7,484,000 |
| China Merchants Securities H.K. Co., Ltd. | 5,834,669 | Domestically listed foreign shares | 5,834,669 |
| Meiyi Investment Property Co., Ltd. | 4,616,000 | RMB common shares | 4,616,000 |
| Liu Fang | 4,035,773 | RMB common shares | 1,090,873 |
| Domestically listed foreign shares | 2,944,900 | ||
| Li Baoqin | 3,972,451 | RMB common shares | 946,700 |
| Domestically listed foreign shares | 3,025,751 | ||
| Chen Qin | 3,926,894 | RMB common shares | 3,926,894 |
| Expiation on associated relationship or consistent actors within the top 10 un-restrict shareholders and between top 10 un-restrict shareholders and top 10 shareholders | 1. 100% equity of HONG KONG NAM HOI (INTERNATIONAL) LIMITED100% held by Shenzhen Energy Co., Ltd.; 2. The Company is unknown whether there exists associated relationship or belongs to the consistent actor among the other shareholders. | ||
| Explanation on top 10 shareholders involving margin business (if applicable) (see note 4) | Among the top ten shareholders, Ms. Liu Fang holds 1,090,873 shares through credit transaction guarantee securities account | ||
2. Controlling shareholders
Nature of controlling shareholders: no controlling bodyType of controlling shareholders: nilExplanation on the Company’s absence of controlling shareholderIn accordance with the paraphrase of controlling shareholder carried in Stock Listing Rules, the Company has no controllingshareholder and such condition has no changes in the reporting periodChange of controlling shareholder in reporting period□Applicable √Not applicableNo changes of controlling shareholder for the Company in reporting period
3. Actual controller of the Company and persons acting in concert
Nature of actual controller: no actual controllerType of actual controller: nilExplanation on the Company’s absence of actual controllerAccording to the “stock listing rules” definition of actual controlling, no actual controlling of the Company and no changes for theaforesaid condition in reporting periodWhether has shareholder owns over 10% shares at ultimate control level√Yes □NoLegal PersonShare-holding at ultimate control level
| Shareholder | Legal representative/Person in charge of the enterprise | Date of establishment | Organization code | Main business |
| Shenzhen SASAC | Yu Gang | 28 June 2004 | K3172806-7 | Fulfill investor duty on behalf of the Shenzhen Municipal Government |
| Shenzhen Nanshan District SASAC | Wen Jinyu | 30 December 2005 | 114403050075421285 | Administrative units |
| Other equity of listed companies in and out of China controlled by shareholder in ultimate control level during the reporting period | Not applicable | |||
4. The first majority shareholder of the Company
Shenzhen Energy Co., Ltd. holds 157,229,378 shares of the Company directly and indirectly, a 26.08% in total shares of theCompany and is the first majority shareholder of the Company. The corporate representative is Gao Zimin. Shenzhen Energy Co., Ltd.was established on July 15
th
, 1985 with registration capital of RMB 230.9712 million. It is a limited liability Company and itsoperating scope covers developing, producing, purchasing and selling various normal energies (including power, heat, coal, oil andgas) and new energies, designing, constructing, managing and operating various energy engineering projects, operating equipmentand accessories, apparatuses, aluminum materials, wood materials, cement and other materials needed by the energy engineeringproject, operating import-export services (transacted according to No. 147 message of SMGSZZD), operating the services ofpersonnel training and consulting matched with the energy engineering, as well as other relevant services (report or declareadditionally for details), developing and transferring environmental protection technologies, and providing technical service,investing and operating the transportation services on the fuels, materials and equipment needed by the energy project. Propertymanagement (operating with the property management qualification certificate) and own property leasing.Relation schema of property rights and control between the Company and main shareholders:
Actual controller controlling the Company by entrust or other assets management□ Applicable √ Not applicable
5. Particulars about other legal person shareholders with over 10% shares held
□Applicable √Not applicable
6. Shares reduction restriction from controlling shareholder, actual controller, recombined square andother commitment entity
□ Applicable √ Not applicable
Section VII. Preferred Stock
□ Applicable √ Not applicableThe Company had no preferred stock in the Period
Section VIII. Particulars about Directors, Supervisors, Senior
Executives and Employees
I. Changes of shares held by directors, supervisors and senior executives
| Name | Title | Working status | Sex | Age | Start dated of office term | End date of office term | Shares held at period-begin (Share) | Amount of shares increased in this period (Share) | Amount of shares decreased in this period (Share) | Other changes (share) | Shares held at period-end (Share) |
| Li Xinwei | Chairman | Currently in office | M | 53 | 28 Aug. 2017 | 17 Nov. 2020 | 0 | 0 | 0 | 0 | 0 |
| Li Hongsheng | Vice chairman | Currently in office | M | 55 | 13 Jan. 2011 | 17 Nov. 2020 | 0 | 0 | 0 | 0 | 0 |
| Chen Yuhui | Director, GM | Currently in office | M | 53 | 28 Aug. 2017; 11 Aug. 2017 | 17 Nov. 2020 | 0 | 0 | 0 | 0 | 0 |
| Zhang Wenqiao | Director | Currently in office | M | 49 | 12 Nov. 2014 | 17 Nov. 2020 | 0 | 0 | 0 | 0 | 0 |
| Yu Chunling | Director | Currently in office | F | 53 | 1 Aug. 1998 | 17 Nov. 2020 | 0 | 0 | 0 | 0 | 0 |
| Wu Guowen | Director, Standing deputy GM | Currently in office | M | 53 | 25 April 2016; 1 April 2016 | 17 Nov. 2020 | 0 | 0 | 0 | 0 | 0 |
| Mo Jianmin | Independent director | Currently in office | M | 52 | 17 Nov. 2017 | 17 Nov. 2020 | 0 | 0 | 0 | 0 | 0 |
| Chen Zetong | Independent director | Currently in office | M | 48 | 17 Nov. 2017 | 17 Nov. 2020 | 0 | 0 | 0 | 0 | 0 |
| Liao Nangang | Independent director | Currently in office | M | 48 | 15 Nov. 2013 | 2019年11月14日 | 0 | 0 | 0 | 0 | 0 |
YeQiliang
| Ye Qiliang | Chairman of supervisory board | Currently in office | M | 55 | 17 Nov. 2017 | 17 Nov. 2020 | 0 | 0 | 0 | 0 | 0 |
| Xiong Qingsheng | Supervisor | Currently in office | M | 45 | 17 Nov. 2017 | 17 Nov. 2020 | 0 | 0 | 0 | 0 | 0 |
| Pan sha | Supervisor | Currently in office | F | 46 | 17 Nov. 2017 | 17 Nov. 2020 | 0 | 0 | 0 | 0 | 0 |
| Liang Jianqiang | Employee supervisor | Currently in office | M | 50 | 12 Nov. 2014 | 17 Nov. 2020 | 0 | 0 | 0 | 0 | 0 |
| Peng Bo | Employee supervisor | Currently in office | M | 45 | 17 Nov. 2017 | 17 Nov. 2020 | 1,527 | 0 | 0 | 0 | 1,527 |
| Lin Qing | Deputy GM | Currently in office | F | 54 | 17 Oct. 2003 | 17 Nov. 2020 | 0 | 0 | 0 | 0 | 0 |
| Zhang Jie | Deputy GM, secretary of the Board | Currently in office | F | 50 | 30 Dec. 2006; 23 Dec. 2015 | 17 Nov. 2020 | 17,325 | 0 | 0 | 0 | 17,325 |
| Dai Xiji | CFO | Currently in office | M | 49 | 17 Nov. 2017 | 17 Nov. 2020 | 0 | 0 | 0 | 0 | 0 |
| Total | -- | -- | -- | -- | -- | -- | 18,852 | 18,852 |
Mawan Power Co., Ltd.; from 2004 to 2006, he also served as the chairman of Huizhou City Gas Development Co., Ltd.; from 2006to August 2017, he held the post of managing director of Shenzhen Energy Finance Co., Ltd., he also holds the post of chairman ofSichuan Shenzhen Energy Power Investment Holding Co., Ltd. from 2015 to October 2018; and he has held the post of director andchairman of the Company since August 2017.
Mr. Li Hongsheng, born in 1963, was Communist party member, a master. From November 2004, he served as director of ShenzhenGuangju Investment Holding (Group) Co., Ltd, director financial controller of Shenzhen Guangju Energy Co., Ltd, chairman ofShenzhen Yangrun Investment Co., Ltd.;From December 2007 to now he serves as Managing director of Shenzhen Guangju EnergyCo., Ltd. and director of Guangju Energy (HK) Co., Ltd; and he serves as director and vice chairman of the Company since January2011
Mr. Chen Yuhui was born in 1965, a senior engineer, graduated from Shanghai Jiao Tong University and obtained a bachelor'sdegree in marine power and a master's degree in vibration, shock & noise (postgraduate degree). In 1989, he worked in themaintenance department of Shenyang Liming Gas Turbine Co., Ltd.; from December 1989 to June 2006, he worked in ShenzhenEnergy Group Yueliangwan Power Plant, and successively held the posts of chief-operator of operation department, specialistengineer of general office, deputy director of maintenance department, factory deputy manager, factory manager, etc.; from June2006 to July 2014, he worked in Shenzhen Energy East Power Plant and held the posts of deputy general manager and operationdirector; from July 2014 to August 2017, he served as the chairman, general manager, and party branch secretary of Zhuhai ShenzhenEnergy Hongwan Power Co., Ltd.; and he has held the posts of director and general manager of the Company and the chairman ofShennandian (Zhongshan) Power Co., Ltd. and Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd since August 2017.
Mr. Zhang Wenqiao was born in 1969, master, graduated from Xi’an Jiaotong University, major in electric. He worked in ShenzhenMawan Power Co., Ltd since 1991, and served as deputy director of the fuel management dept. of Shenzhen Energy Group since2006, he successively served chief and GM of the property rights legal department of Shenzhen Energy Group Co., Ltd. since 2008;now he serves as GM of the fuel material dept. of Shenzhen Energy Group Co., Ltd. and GM of fuel branch of Shenzhen EnergyGroup Co., Ltd., he currently serves as director of the Company since November 2014.
Ms. Yu Chunling was born in 1965, a senior engineer, an on-the-job master of economics in Peking University, and graduated frompower plant building structural engineering of Wuhan Institute of Hydraulic and Electric Engineering. She served successively as atechnician and civil engineering contract engineer at engineering department of Guangdong Nuclear Power Joint Venture Co., Ltd.,the project manager of Shenzhen Energy Investment Co., Ltd., and the deputy director and director of office business, the director offuel trade department, and the director of planning and development department of Shenzhen Energy Group Co., Ltd., and thedirector of preparation office of Shenzhen Pumped Storage Power Station. She serves as the managing director of Shenzhen Energy(Hong Kong) International Co., Ltd, the director of HONG KONG NAM HOI (INTERNATIONAL) LTD. and the director of theCompany.
Mr. Wu Guowen, born in 1965, an undergraduate, He worked in Shenzhen Guangju Energy Co., Ltd. since 1994; and worked inShenzhen Yisheng Liquid Storage Co., Ltd. from 2008 to November 2010, and served as deputy GM; he works in Shenzhen GuangjuReal Estate Co., Ltd. From December 2010 to March 2016, and successively appointed as standing deputy GM, legal representative,executive director and GM; serves as staff supervisor in Shenzhen Guangju Energy Co., Ltd. since August 2013. he serves as director,standing deputy GM of the Company since April 2016, he serves as chairman of Shenzhen Server Energy Co., Ltd. Since March2018
Mr. Mo Jianmin was born in 1966, a China Certified Public Accountant, graduated from School of Law of Nanchang University.From March 1985 to October 1996, he worked at Tonggu County Taxation Bureau of Jiangxi Province and Local Taxation Bureau of
Tonggu County; from November 1996 to October 1999, he worked at Shenzhen Tongren Certified Public Accountants; from October1999 to March 2001, he worked at Zhongtianqin Certified Public Accountants; from April 2001 to December 2003, worked atShenzhen Languang Enterprise Group; from January 2004 to December 2010, he worked at Shenzhen Jinniu Accounting Firm; fromJanuary 2011 to October 2012, he was appointed as a partner of Jonten Certified Public Accountants Shenzhen Branch; fromNovember 2012 to May 2014, he served as a partner of Beijing Yongtuo Certified Public Accountants; he has served as a partner ofDa Hua Certified Public Accountants since June 2014.He serves as independent director of the Company since Nov. 2017
Mr. Chen Zetong was born in 1970, a bachelor of laws at Southwest University of Political Science and Law, a master of laws at theUniversity of Hong Kong, a doctor of laws at Jilin University. From 1994 to 2003, he served as a court clerk, assistant judge andjudge at the Real Estate Trial Division of Shenzhen Intermediate People's Court; from July to August 2002, he practiced as a judicialassistant in the High Court of Hong Kong; from 2003 to 2006, he served as the presiding judge at the Economic Trial Division; from2006 to 2010, he served as the deputy presiding judge at the seventh court of Shenzhen Intermediate People's Court (CorporateLiquidation and Bankruptcy Trial Division), and presided over the work of this court from June 2006 to August 2008. From 2010 to2012, he served as a partner of Beijing King & Wood Mallesons. Since 2012, he has been a senior partner of Beijing JunZeJun LawOffices. He is currently an arbitrator of Shenzhen Court of International Arbitration, concurrently an independent director of listedcompany Tianma Microelectronics Co., Ltd. (A-share 000050), an independent director of Hubei Sanxia New Building Materials Co.,Ltd. (A-share 600293), an independent director of New Sports Group Limited (00299 HK), an independent director of non-listedcompany Funde Insurance Holding Co., Ltd., an independent director of Funde Sino Life Co., Ltd., and an independent director ofSino Life Assets Management Co., Ltd. He serves an independent director of the Company since November 2017
Mr. Liao Nangang, was born in 1970, bachelor of East China Political Science and Law in law major. He served as assistant judgeand judicial office in People’s Court of Shenzhen Nanshan District from September 1992 to December 2000; a lawyer in GuangdongZhongAn Laws Firm from March 2001 to February 2004; act as lawyer and partner of Guangdong Haohui Laws Firm from February2004 to October 2013 and serves as partner and lawyer of Guangdong Guangjin Laws Firm since from November 2013 to November2017; he serves as lawyer and partner of the Guangdong Leyi Laws Firm since December 2017. From 2008 to January 2019, he alsoact as arbitrator in Shenzhen Arbitration Commission and owns the qualification of independent directors. He had offered systemiclegal services for listed companies as China Merchants Property Development Co., Ltd. and China Merchants Bank Co., Ltd. (HQ)and serves as independent director of the listed company (600828)- Maoye Commercial Co., Ltd. He holds the post of independentdirector of the Company since November 2013
Members of supervisory committee of the board:
Mr. Ye Qiliang was born in 1963, a member of the Communist Party of China with a college degree. From 1979 to January 1984, heserved in the Army 83020; from January 1984 to March 1997, he worked in Quannan County of Jiangxi Province; from March 1997to February 1999, he worked at Shenzhen Shennan Petroleum (Group) Co., Ltd. and served as a clerk in the investment department;from February 1999 to June 2009, he worked at Shenzhen Guangju Energy Co., Ltd. and served as the deputy director of the generalmanager office, the deputy director of the secretariat of the board of directors, and the representative of securities affairs; he serves asthe committee member of labor union of Shenzhen Guangju Energy Co., Ltd. since July 2012; from July 2009 to March 2016, hesuccessively served as the deputy general manager and general party branch member of Shenzhen Nanshan Petroleum Co., Ltd.; hehas served as the secretary of party general branch of the Company from April 2016 to July 2018, now he holds the deputy secretaryof party general branch of the Company since July 2018
Mr. Xiong Qingsheng was born in 1973, an engineer and lawyer, a master of business administration of Sichuan University. FromJuly 1992 to December 2005, he worked on the operation and grassroots management at Mawan Power Plant, a subsidiary ofShenzhen Energy Group; from December 2005 to April 2008, he served as the legal secretary of the Secretariat of Board and the
deputy director of business of Shenzhen Energy Group Board of Directors Secretariat; from April 2008 to March 2014, he served as asenior legal adviser to the board office of Shenzhen Energy Group; from March 2014 to December 2017, he served as a seniormanager of investor relations for the board office of Shenzhen Energy Group Co., Ltd.; he has served as the deputy general managerShenzhen Energy Gas Investment Holdings Co., Ltd. and concurrently as the general manager of Hebei Zhaoxian Asia Pacific GasCo., Ltd. since December 2017. He serves as supervisor of the Company since November 2017
Ms. Pan Sha was born in 1972, an auditor, and a bachelor in auditing at Wuhan University. From July 1995 to April 2000, she servesas a cadre at the Supervision Department of Shenzhen Energy Corporation; from April 2000 to April 2008, she served as deputydirector of audit department of Energy Group, deputy director and director of business of audit and supervision department, anddirector of business of audit department; from April 2008 to December 2014, she served as a senior auditor and audit manager at ofaudit management department of Shenzhen Energy Group Co., Ltd.; she has served as the vice GM and senior audit manager at theaudit management department of Shenzhen Energy Group Co., Ltd. since December 2014. She serves as supervisor of the Companysince November 2017
Mr. Liang Jianqiang, born in 1968, an engineer, bachelor degree, graduated from department of engineering physics of TsinghuaUniversity in 1991, major in nuclear energy and heat energy utilization. He worked in Shenzhen Moon Bay Gas Turbine Power Plantfrom 1991 to 1998, successively served as specialist engineer of gas turbine in operation department, sub-director of the gas turbinein inspection and maintenance department and specialist engineer of planning in inspection and maintenance department. He worksin Shenzhen Nanshan Power Co., Ltd. since July 1998 transferred by Shenzhen Energy Group Co., Ltd, and successively served asdeputy chief, chief of the inspection and maintenance department, deputy chief of the operation department, director of productionmanagement department and security chief. Served as chief of production technology department and security chief of the Companyfrom 2005 to 2013; he serves as employee supervisor of the Company since November 2014. Serves as deputy director in NanshanPower Plant in December 2013 and acting manager of Nanshan Power Plant since October 2017. he serves as director of NanshanPower Plant since December 2017. and now he serves as director of Shen Nan Dian Environmental Protection Co., Ltd and the vicechairman of Shenzhen New Power Industrial Co., Ltd.
Mr. Peng Bo was born in 1973, a senior economist, engineer, and a master graduate student. He graduated from Huazhong Universityof Science and Technology, majoring in power system automation in 1994, and then he majored in business administration atHuazhong University of Science and Technology and obtained a master's degree. He has been working in Shenzhen Nanshan PowerCo., Ltd. since 1994, and has served as a professional engineer of gas turbine thermal control maintenance, supervisor of labor andcapital, assistant of office director, and deputy director of human resources department; from April 2007 to December 2013, heserved as the director of human resources department, and concurrently served as the supervisor of a subsidiary Zhongshan ZhongfaPower Company; from May 2011 to November 2014, he served as the employee supervisor of the company's sixth board ofsupervisors; from December 2013 to December 2017, he served as the deputy director of Nanshan Thermal Power Plant; he serves sthe director and GM of Shenzhen Shennandian Environmental Protection Co., Ltd. since December 2017. now he holds the employeesupervisor of the Company since November 2017
Senior managers of the Company:
Resume of Director/GM Chen Yuhui and Director/ standing deputy GM Wu Guowen found the aforesaid
Ms. Lin Qing was born in 1964, a senior engineer, and a master of electrical engineering at Hunan University. From 1985 to 1990,she taught at the department of electric power at Changsha Normal University of Water Resources and Electric Power. From 1990 to1991, she worked in the engineering department of Guangdong Daya Bay Nuclear Power Plant. Since December 1991, she hasserved successively as the secretary of general office and the business director of Shenzhen Energy Corporation, the office director ofShenzhen Western Power Co., Ltd., the chairman of the party and the masses department, the chairman of the labor union of the
office, the office director, the party branch secretary of the office, the director of the labor union office, the member of the partycommittee of the Group, the general manager assistant at Shenzhen Energy Group Co., Ltd.. She has been serving as the deputygeneral manager of the Company from October 2003 to now. She served as a director of the Company from April 2015 to November2017.
Ms. Zhang Jie, born in 1968, CHRM, Master of Psychology of Beijing University; she was successively study with specialty ofBritish and American Literature in the Foreign Language Department of Zhengzhou University and specialty of applied psychologyin the Psychology Department, Beijing University. She used to work in Henan Provincial Seismological Bureau as a translator in1990, worked in the financial department and office of Shenzhen Nanshan Power Co., Ltd. since October 1990; she successively heldthe posts of secretary, office director, general manager assistant and employee supervisor of the Company since 1993. and holds theposts of deputy GM of the Company since December 2006. She worked as chairman of Shenzhen Shen Nan Dian EnvironmentProtection Co., Ltd from 2014 to September 2018. She holds the secretary of the Board of the Company since 23 December 2015
Mr. Dai Xiji was born in 1969, a bachelor, and a senior accountant. From July 1992 to December 1996, he served as an accountant ofShenzhen Mawan Power Co., Ltd. Mawan Power Plant; from January 1997 to July 1998, he served as an accountant at the financedepartment of Shenzhen Energy Corporation Power Generation Branch; from July 1998 to December 1999, he was an accountant atthe finance and accounting division of Shenzhen Energy Group Co., Ltd.; from December 1999 to December 2007, he served as thedeputy director at finance department and the director at finance and accounting division of Mawan Power Plant; from January 2008to September 2008, she served as the director at finance department of Shenzhen Mawan Power Co., Ltd.; from August to September2008, he served as the cadre at the preparation office of Binhai Power Plant; from September 2008 to July 2014, he served as thesenior manager at financial management department of Shenzhen Energy Group Co., Ltd.; From February 2011 to June 2014, heconcurrently serves as the manager at the financial management department of Shenzhen Energy Fuel Branch; from July 2014 toNovember 2017, he was appointed as the deputy general manager of Shenzhen Energy Fuel Branch, he serves as CFO of theCompany since November 2017 and now he also acts as the chairman of Shenzhen New Power Industrial Co., Ltd., the subordinateEnterprise of the Company and director of Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd
Post-holding in shareholder’s unit√Applicable □ Not applicable
| Name | Name of shareholder’s unit | Position in shareholder’s unit n | Worked from | Expired in | Received remuneration from shareholder’s unit (Y/N) |
| Yu Chunling | HONG KONG NAM HOI (INTERNATIONAL) LTD. | Chairman | 2008 | N |
| Name | Name of other units | Position in other unit | Worked from | Expired in | Received remuneration from other unit (Y/N) |
| Li Xinwei | Sichuan Shenneng Power Investment | Chairman | 2015 | 2018 | N |
Co.,Ltd.
| Co.,Ltd. | |||||
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | Chairman | 2018 | N | ||
| Li Hongsheng | Shenzhen Guangju Energy Co., Ltd. | Director, GM | 2007 | Y | |
| Chen Yuhui | Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | Chairman | 2017 | N | |
| Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd | Chairman | 2017 | N | ||
| Shenzhen Shennandian Turbine Engineering Technology Co., Ltd. | Chairman | 2018 | 2019 | N | |
| Zhang Wenqiao | Shenzhen Energy Group Co., Ltd. | GM of Fuel material Dept. | 2017 | Y | |
| Fuel Branch of Shenzhen Energy Group Co., Ltd. | GM | 2017 | N | ||
| Yu Chunling | Shenzhen Energy (H.K) International Co., Ltd. | Director, GM | 2013 | Y | |
| Wu Guowen | Shenzhen Guangju Energy Co., Ltd. | Employee Supervisor | 2013 | 2018 | N |
| Shenzhen Server Energy Co., Ltd. | Chairman | 2018 | N | ||
| Mo Jianmin | Da Hua Certified Public Accountants | Partner | 2014 | Y | |
| Chen Zetong | Junzejun Law Offices | Senior partner | 2012 | Y | |
| Liao Nangang | Guangdong Leyi Laws Firm | Partner, lawyer | 2017 | Y | |
| Ye Qiliang | Shenzhen Shennandian Turbine Engineering Technology Co., Ltd. | Vice chairman | 2016 | 2018 | N |
| Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd | Director | 2016 | 2018 | N | |
| Xiong Qingsheng | Shenzhen Energy Fuel Investment Holding Co., Ltd. | Deputy GM | 2017 | Y | |
| Hebei Zhaoxian Asia-Pacific Fuel Co., Ltd. | GM | 2017 | N | ||
| Pan sha | Shenzhen Energy Group Co., Ltd. | Vice GM of auditing management dept. | 2014 | Y | |
| Liang Jianqiang | Shenzhen New Power Industrial Co., Ltd. | Vice chairman | 2018 | N |
Shenzhen Shen Nan Dian EnvironmentProtection Co., Ltd.
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | Director | 2014 | N | ||
| Peng Bo | Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | Director, GM | 2017 | Y | |
| Zhang Jie | Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | Chairman | 2014 | 2018 | N |
| Dai Xiji | Shenzhen New Power Industrial Co., Ltd. | Chairman | 2018 | N | |
| Shen Nan Energy (Singapore) Co., Ltd. | Director | 2017 | N | ||
| Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd | Director | 2017 | N |
| Name | Title | Sex | Age | Post-holding status | Total remuneration obtained from the Company (before taxes) | Whether remuneration obtained from related party of the Company |
| Li Xinwei | Chairman | M | 53 | Currently in office | 79.5 | N |
| Li Hongsheng | Vice chairman | M | 55 | Currently in | 0 | Y |
office
| office | ||||||
| Chen Yuhui | Director, GM | M | 53 | Currently in office | 71.5 | N |
| Zhang Wenqiao | Director | M | 49 | Currently in office | 0 | Y |
| Yu Chunling | Director | F | 53 | Currently in office | 0 | Y |
| Wu Guowen | Director, Standing deputy GM | M | 53 | Currently in office | 67 | N |
| Mo Jianmin | Independent director | M | 52 | Currently in office | 11.9 | N |
| Chen Zetong | Independent director | M | 48 | Currently in office | 11.9 | N |
| Liao Nangang | Independent director | M | 48 | Currently in office | 11.9 | N |
| Ye Qiliang | Chairman of supervisory committee | M | 55 | Currently in office | 66.5 | N |
| Xiong Qingsheng | Supervisor | M | 45 | Currently in office | 0 | Y |
| Pan sha | Supervisor | F | 46 | Currently in office | 0 | Y |
| Liang Jianqiang | Employee supervisor | M | 50 | Currently in office | 32.7 | N |
| Peng Bo | Employee supervisor | M | 45 | Currently in office | 32.49 | N |
| Lin Qing | Deputy GM | F | 54 | Currently in office | 66.5 | N |
| Zhang Jie | Deputy GM, secretary of the Board | F | 50 | Currently in office | 64.5 | N |
| Dai Xiji | CFO | M | 49 | Currently in office | 64.5 | N |
| Total | -- | -- | -- | -- | 580.89 | -- |
V. Particulars of workforce
1. Number of Employees, Professional categories, Education background
| Employee in-post of the parent Company (people) | 279 |
| Employee in-post of main Subsidiaries (people) | 241 |
| The total number of current employees (people) | 520 |
| The total number of current employees to receive pay (people) | 520 |
| Retired employee’ s expenses borne by the parent Company and main Subsidiaries (people) | 0 |
| Professional categories | |
| Types of professional category | Numbers of professional category |
| Production and technical personnel | 293 |
| Financial staff | 29 |
| Administration staff | 198 |
| Total | 520 |
| Education background | |
| Type of education background | Numbers (people) |
| High school and below | 93 |
| 3-years regular college graduate and Polytechnic school graduate | 239 |
| Bachelor degree | 166 |
| Master and above | 22 |
| Total | 520 |
of the Company on the basis of annual operating efficiency, post rank and other factors and in consideration of the industrialremuneration level and the actually paid remuneration standard by referring to the examination of annual operation performance andaudit status. The operation team is authorized to manage the remuneration and incentive of other personnel on the principle of“defining salary in terms of post and obtaining remuneration in terms of labor”. Within the annual remuneration limit approved bythe board of directors, and in compliance with the remuneration principle and Interim Remuneration Management Provision set downby the Board of Directors, determine and execute the remuneration standard, distribution plan, examination and incentive method ofemployees at each level.
3. Training programs
The Company always attached great importance to staff training, and established of the "staff training and management regulations"and a more perfect training network. Through strengthening the staff training, enhancing the staff's job skills and comprehensivequality, to better meet the Company's management, management demand for talent, while training reserve personnel for theCompany's sustainable development. During the reporting period, the Company strictly implemented the training plans thatformulated in beginning of the Year, mainly carried out the following aspects of the training:
(1) Safety Training: According to the Production Safety Law, other laws and regulations and the Safety Training Regulations of theCompany, organize the safety certificate training and following training for the safety principal, principal and security officer of theCompany headquarters and affiliated companies in order to meet legal regulatory requirements for security training, carry outemergency drills and safety management procedures training, and improve the safety awareness and accident prevention capacity ofmanagement at all levels and employee;(2) Post qualification training: by means of learning assignments, the obtaining of certificate, internal training and assessment, carryout certification training for key business and technical post, meet with requirements of relevant laws and regulations for vocationalqualification requirements, and improve employee job performance ability.(3) Simulator skills training: relying on gas turbine simulation training base, continued to carry out stimulator training for theoperation personnel within three power plants of the Company, and improve the practical operation and adaptability to changes ofplant operations personnel.(4) The induction training of new employees: Carry out systematic and pointed job skill and professional training for the newlyrecruited graduates of the company;(5) External training project: While training for the employees of the company, the company made use of the training advantagesaccumulated by the training center for gas-fired combined cycle post technology over the years to expand the post skills trainingprograms for external units, which not only contributed profits to the company and consolidated the own part-time teacher team, butalso trained reserve talents for the sustainable development of the company.(6) Training of party members:The party general branch and the party branches of the company will formulate detailed and feasibleplans according to the requirements of the higher-level organizations, and actively carry out the learning activities of “two studiesand one doing” and “studying makes a stronger country” by adopting various forms such as issuing books and materials, bringing inexperts, and leading party members to go out; strictly implement the “three meetings and one class” system, and develop activitiessuch as “secretary teaches party lessons”. ensured the party's organizations to play a core role and the majority of party members toplay a vanguard and exemplary role through training and study.
4. Labor outsourcing
□ Applicable √ Not applicable
Section IX. Corporate Governance
I. Corporate governance of the Company
During the reporting period, in accordance with guideline of Company Law, Securities Law, Corporate Governance Guidelines,Stock Listing Rules and other regulatory documents, and requirements of Articles of Associations and rules of procedures, constantlyoptimized the corporate governance structure, constantly maintained sound modern enterprise management system, and furtherimproved the right balancing mechanism of the general meeting of shareholders, board of directors and supervisory board,standardized the operations and decision-making procedures of the general meeting of shareholders, board of directors andsupervisory board and the manager office, fulfilled important information confidentiality and information disclosure obligations,strengthened the internal audit and risk control, made great efforts to improve governance and standardization meticulousmanagement, and effectively protected the interests and legitimate rights of listed companies, investors and employees.1. Shareholders' meeting: During the reporting period, the Company held one regular shareholders’ meeting to carefully deliberateand decide on issues which were submitted to the general shareholders’ meeting for approval. The convening of the shareholders’meeting was legal and all decision-making processes were open, fair and just. The site voting and online voting were orderlyorganized and witnessed by lawyers and the regulation where connected shareholders should be excluded from voting was strictlyimplemented. Resolutions passed in shareholders’ meeting were timely disclosed to ensure the information right and voting right ofall shareholders, especially minority shareholder related to major events of the Company. The operation and management of theCompany's shareholders' meeting complied with laws and regulations. Shareholders of the Company earnestly fulfilled theirresponsibilities under the Company Law and Articles of Association to regulate operations in all aspects. There were no largeshareholders and related parties who occupied or transferred the Company's funds, assets and other resources with various forms. Thefair rights of all shareholders were protected legally.
2. Board of Directors: In the report period, the Board of Directors of the Company held two regular meetings and two extraordinarymeetings to carefully research, deliberate and make decisions on significant matters within the rights of board of directors. Theconvening of the meetings of the board was legal and all decision-making processes were open, fairness and justice. Four specialcommittees under the Board of Directors, the Strategy and Investment Committee, Nomination Committee, Audit Committee, as wellas Remuneration and Appraisal Committee are carefully deliberated relevant proposals and giving opinions and suggestions toprovide reference and support for the efficient operation and scientific decision of the BOD. All directors were in a serious andresponsible attitude to actively attend the Board meeting, made prudent decision on all resolutions and issued a clear opinion,earnestly fulfilled their obligations of diligence, good faith and impartiality, and made efforts to safeguard the interests of theCompany and its shareholders. Independent directors played their professional advantages, upheld the objective and independentprinciple and conscientiously performed their duties. They issued independent opinions on resolutions and brought forwardconstructive comments and suggestions on the Company’s standardized operation and risk prevention, and paid attention to theinterests of the Company as a whole and those the shareholders of the Company, especially the legitimate interests of minorityshareholders.
3. Supervisory Committee: During the reporting period, the Supervisory Committee of the Board held two regular meetings and twoextraordinary meeting, to carefully research, deliberate and make decisions on important matters within the scope of its rights. Theconvening of the meeting of supervisory board was legal and all decision-making processes were open, fairness and justice. The
Supervisory Committee also attended the shareholders’ meeting and board’s meeting as a nonvoting delegate and organized the spotvisit to the affiliates of the Company so as to comprehensively and deeply understand the Company's operations, management of, andbetter carry out its oversight responsibilities. All supervisors of the Company actively attended all meetings of Supervisory Board andtook part in meetings of shareholders and the board of directors as nonvoting delegates, seriously considered the resolutions of theSupervisory Board and then issued proposals on significant decisions made by shareholders’ meeting and board of directors,efficiently supervised the legality of Company operation and management as well as the normative performance directors, and seniormanagement. They did perform their duties on the diligent, objective and independent basis so as to safeguard the interests of theCompany, shareholders and employees.4. Manager Office: During the Manager Office of the Company performed their duties in strict accordance with the Company Law,other relevant laws and regulations, the Articles of Association and other regulatory documents, established and continuouslyimproved the office system and internal control system, continuously optimized the work-flow and decision-making procedures,followed the working principle of rational division of labor and strengthening cooperation, and the tent to make collectively decisionson major issues, and tried to improve the standardization of the management level. Based on the spirit of law, integrity, loyalty anddiligence, carefully organized the production, operation and management of the Company, made great efforts to create a positive,harmonious and aggressive corporate culture, respected and safeguarded the legitimate rights and interests of shareholders,employees and relevant stakeholders. For the matter to be submitted to the board of directors and the shareholders’ meeting, carefullyorganized research, demonstration and documentation, and strictly implemented the resolutions of the Board of Directors and thegeneral meeting of shareholders to ensure the effective implementation of resolutions.5. Information disclosure and major information confidentiality system: the Company executed the major information confidentialitysystem in accordance with the relevant provisions of the Company Law, Securities Law, Stock Listing Rules and other majorinformation security system, fulfilled its obligation of information disclosure, designated Securities Times, China Securities Journal,Hong Kong Commercial Daily and www.cninfom.com to disclose information, and carefully disclosed information with the reportingperiod and strive to improve the quality of information disclosure. During the reporting period, the Company did not provideundisclosed information to large shareholders and actual controllers in violation of information disclosure requirements. Tostrengthen the management of non-public information, the Company strictly controlled the scope of insiders, standardizedinformation transfer process, strictly implemented the relevant provisions of the Insiders Registration System, reported regularlyinsider information and kindly reminded the insider information to strictly comply with the related regulations on insider informationconfidentiality and stocks trading of the Company before the convening of the meetings of general shareholders, board of directorsand supervisory board. There were no significant information disclosures within the reporting period.
6. Investor relations management: the Company regularly counted and analyzed status of shareholders, dynamically tracked changesin investors, carefully interviewed the visit and consultation of investors, and timely replied investor inquiries via telephone andnetwork. In receiving the visiting investors and replied to inquiries, the Company strictly complied with Stock Listing Rules and therequirements for the confidentiality of other insider information, adhered to the fair, just and open principle, respected the legitimaterights and interests of investors under the premise of not violating laws and carefully fulfilled its responsibilities of investor relationsmanagement.
7. Internal control system and standardized management: During the reporting period, in order to better meet the company's needs forstandardized governance and efficient operation, the company has revised eight systems with governance concerned in Article ofAssociation, Rules of Procedure of Shareholder General Meeting and Rules of Procedure of the Board, as well as more than 20 basicmanagement systems and relevant business procedures in Budget Management Rule and Management Regulation on Labor Contractfor Employee. The company carried out special audit work on internal control self-evaluation, internal regular audit, departure auditand compensation management, and business normativity of subordinate enterprise, and took active and effective measures to
improve existing problems and deficiencies. Strengthened the training and ideological education of directors, supervisors, seniormanagement personnel, and middle-level management cadres at all levels, and emphasized the performance of duties according tolaw, standardized the words and deeds, and fought against corruption. The company has been striving to prevent businessmanagement risks by continuously improving the internal control system, increasing the assessment and rewards and punishments,and further improving the standardization of management.
Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance forlisted Company from CSRC?□Yes √ NoThere are no differences between the actual condition of corporate governance and relevant regulations about corporate governancefor listed Company from CSRC.
II. Independence of the Company relative to controlling shareholders’ in aspect of businesses,personnel, assets, organization and finance
The Company has not controlling shareholder. The Company is completely independent in personnel, assets, finance, business, andinstitutions and is able to make independent decision and operations.1. Personnel independence: The Company has set up an independent human resource management system and compensation &benefits systems. All members of the management level and senior executives are full-time executives and are paid remuneration bythe Company and none of them takes other administrative posts in shareholders. Within the amount approved by the Board, theCompany independently hires or fires employees according to the management needs. The Company has established a more perfecthuman resources management system, and has an independent management right.2. Assets independence: the Company has independent production facilities and auxiliary systems, land use rights, property rights,office facilities and equipment. Within the range authorized by the board of directors and general shareholders’ meeting, theCompany has the powers of independent acquisition and disposition of assets.3. Financial independence: The Company has independent financial management and accounting system, is equipped withindependent financial management and accounting personnel, and establishes a relatively sound financial management system,independent bank account and tax accounts. Within the range authorized by the board of directors and shareholders’ meeting, theCompany can made independent financial decision and there are no substantial shareholders with financial management interference,embezzlement of funds and other circumstances.4. Business independence: the Company independently carries out production and business activities, has set up independent andcomplete production, procurement, sales channels and management system. Within the range authorized by the board of directors andshareholders’ meeting, the Company makes its own management decisions, carries out self management and takes fullresponsibilities for its own profits and losses.5. Independent organization: The Company, in accordance with the needs of production, operation, management, followed modernenterprise management standards and established a relatively sound organization and management structure. There were neitherinterference of shareholders in the establishment and operation of the neither Company nor organization structure shared betweenshareholders and the Company.
III. Horizontal competition
□ Applicable √ Not applicable
IV. In the report period, the Company held annual shareholders’ general meeting andextraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
| Session of meeting | Type | Ratio of investor participation | Date | Date of disclosure | Index of disclosure |
| Annual General Meeting of 2017 | AGM | 38.80% | 12 April 2018 | 13 April 2018 | “Resolution Notice of Annual General Meeting 2017” No.:2018-014, published on “China Securities Journal” “Securities Times” “Hong Kong Commercial Daily” and Juchao Website |
| The attending of independent directors to Board Meeting and Shareholders General Meeting | |||||||
| Independent Director | Times of Board meeting supposed to attend in the report period | Times of Presence | Times of attending the Board Meeting by communication | Times of entrusted presence | Times of Absence | Absent the Meeting for the second time in a row (Y/N) | Times of attend the general meeting |
| Liao Nangang | 4 | 1 | 3 | 0 | 0 | N | 1 |
| Mo Jianmin | 4 | 1 | 3 | 0 | 0 | N | 1 |
| Chen Zetong | 4 | 1 | 3 | 0 | 0 | N | 1 |
□ Yes √ NoNo independent directors come up with objection about Company’s relevant matters in the Period
3. Other explanation about responsibility performance of independent directors
The opinions from independent directors have been adopted√ Yes □ NoExplanation on advice that accepted/not accepted from independent directors
Within the reporting period, in accordance with the Company Law, the Corporate Governance Guidelines, Guideline on theEstablishment of Independent Directors in Listed Companies, the Working System of Independent Directors, the Articles ofAssociation and other requirements of normative documents, and based on the spirit of independence, objectivity and the principle ofprudence, all independent directors of the Company conscientiously performed their duties, understood and paid attention to theCompany's business development, and deliberated and voted all resolutions submitted by the board of directors. Besides, by means oftheir professional advantages in their respective fields, all independent directors deeply and prudently judged significant matters forwhich the opinions of independent directors were necessary, delivered a written independent opinions and made recommendations tosafeguard the legitimate interests of the Company and all shareholders. The Board of Directors fully respected the performance ofduties by independent directors, attached great importance to and carefully accepted the views and recommendations of theindependent director. And there were no recommendations of independent directors not adopted.
VI. Duty performance of the special committees under the board during the reporting period
(i) Strategy and investment management committee1. Attending the meeting of the Board and shareholders general meeting, keep track of the production, operation and development ofthe CompanyIn 2018, member of the strategy and investment management committee attended the 4 meetings of the Board, one shareholdersgeneral meeting and one work report meeting for first half year, they careful review the comprehensive documents as Work Report ofGM for year of 2017 and Integrated Business Plans for year of 2018, performing the duties and offering advice and suggestions to theBoard with purpose of keep track of the Company’s production and operation
2. Convening a meeting of strategy and investment management committee, review the Performance Report for yea of 2017 andoffering suggestion to the BoardOn 20 March 2018, the 8
th
strategy and investment management committee holds one meeting to deliberated and approved thePerformance Report for yea of 2017, and formulated a working ideas and plans for the year of 2018.
(ii) Audit Committee
1. Attending the meeting of the Board and shareholder general meeting, keep track of the production, operation and development ofthe Company and propose opinions and suggestion on financial and IC auditing
In 2018, the audit committee members of the company’s board of directors attended four board meetings, one shareholders meetingand one work report meeting in the first half year, and carefully reviewed the integrated documents including “2017 Annual GeneralManager Work Report” and “Proposal on the 2018 Annual Comprehensive Business Plan” etc. Carefully performing their duties andcreating condition for offering suggestion and plan to the Board. Furthermore, propose professional opinions in respect of the
auditing report and documents with IC issued by the CPA.
2. Held meeting of Audit Committee and issued opinions on annual audit and other related matters.(1) On 5 January 2018, the 8
th
audit committee of the Board hold one meeting voting by correspondence to deliberated and approvedthe Auditing Plan for year of 2017 of Shenzhen Nanshan Power Co., Ltd. prepared by Shenzhen Branch of Ruihua CPA.(2) On 9 Feb. 2018, the Audit Committee of the 8
th
Board of Directors of the Company convened the 2
nd
meeting to listen to thecommunication matters between Ruihua Certified Public Accountants and the management during the 2017 annual audit, discussedthe important issues presented by the accountants in the process of auditing term by term, confirmed the opinions on the handling ofimportant issues, required the company to cooperate with the audit authority and complete the preparation work of 2017 annual auditreport in strict accordance with the requirements of the regulatory authorities.(3) On March 20, 2018, the Audit Committee of the Board convened the 3
rd
meeting to communicate with Ruihua Certified PublicAccountants about the finalization of 2017 annual audit report, and listened to the accounting firm's suggestions to the annual auditwork, the deliberation reviewed and passed the Proposal for Reviewing 2017 Annual Internal Control Evaluation Report, theProposal on the Company's Work Plan for 2018 Annual Internal Audit and Internal Control, the Re-engagaement of AuditingInstitution and Remuneration for year of 2017 and the 2017 Duty Performance Report of the Audit Committee of the Board etc.(4) On 26 Oct. 2018, the audit committee of the Board hold fourth meeting voting by correspondence to deliberated and approved theAuditing Plan for year of 2018 of Shenzhen Nanshan Power Co., Ltd. prepared by Shenzhen Branch of Ruihua CPA.
(iii) Nomination Committee1. Attending the meeting of the Board and shareholder general meeting, keep track of the production, operation and development ofthe CompanyIn 2018, members of the Nomination Committee attended 4 Board meetings, one shareholders’ meeting and one work report meetingfor first half year, they careful review the comprehensive documents as Work Report of GM for year of 2017 and Integrated BusinessPlans for year of 2018 etc. Keep track of the Company’s production and creating condition for performing the duties and offeringadvice and suggestions to the Board2. Convened meeting of Nomination Committee deliberated the “Performance Report for year of 2017 of Nomination Committee ofthe Board” and propose suggestion to the BoardOn March 20, 2018, the Nomination Committee of the 8
th
Board of Directors of the Company convened the 2
nd
meeting, reviewedand approved the Performance Report for year of 2017 of Nomination Committee of the Board, and formulated a working ideas andplans for the year of 2018.
(iv) Remuneration and Appraisal Committee1. Attending the meeting of the Board and shareholders general meeting, and propose opinions and plans on remuneration,assessment and rewardIn 2018, members of the remuneration and appraisal committee attended 4 Board meetings, one shareholders’ meeting and one workreport meeting for first half year, they careful review the documents as Work Report of GM for year of 2017 and Integrated BusinessPlans for year of 2018 etc. and creating condition for offering suggestion and plan to the Board in order to performing their duties;Furthermore, reviewing and deliberating relevant proposals with remuneration and awarding plans concerned, keep eyes on theimplementation of remuneration and propose suggestion; organized activities of formulating relevant reward programs and supervisethe implementation, which conscientiously fulfill the obligation of diligence and duties.
2. Held meeting of Remuneration and Appraisal Committee, deliberated the resolution on the provision of annual remuneration andrelevant rewards with appraisal concerned, and make recommendations for the Board of DirectorsOn March 20, 2018, the Remuneration and Appraisal Committee of the 8
th
Board of Directors convened 1
st
meeting to listen to theReport on the Implementation of the 2017 Remuneration Withdrawal and Appraisal Program, reviewed and approved the Proposal onthe 2018 Remuneration Withdrawal and Appraisal Program, the Proposal for Rewarding the Special Award for year of 2017 andDuty Performance Report of the Remuneration and Appraisal Committee of the Board for 2017, and put forward professionalopinions and suggestions for the next year's work.
VII. Works from Supervisory Committee
The Company has risks in reporting period that found in supervisory activity from supervisory committee□ Yes √ NoSupervisory committee has no objection about supervision events in reporting period
VIII. Examination and incentives of senior management
The Remuneration and Evaluation Committee of the Board is responsible for setting down and supervision implementation theappraisal and remuneration system of Company managers and other senior management personnel to develop, established theremuneration incentive mechanism liked with operation performance. At the beginning of the year, according to the annual operationtarget, core tasks and post ranks of senior management, and in comprehensive consideration of the industrial and regionalremuneration level, research and determine the total amount of remuneration and the remuneration and appraisal standard of seniormanagement. After the year ends, determine the annual remuneration granting standard and incentive scheme in accordance with theappraisal of completion of operation performance and in combination of the performance of duties of senior management.
IX. Internal Control
1. Details of major defects in IC appraisal report that found in reporting period
□ Yes √ No
2. Appraisal Report of Internal Control
| Disclosure date of full internal control evaluation report | 28 March 2019 |
| Disclosure index of full internal control evaluation report | “Audit report of internal control for year of 2018” published on Juchao Website (www.cninfo.com.cn) |
| The ratio of the total assets of units included in the scope of evaluation accounting for the total assets on the Company's consolidated financial | 100.00% |
statements
| statements | ||
| The ratio of the operating income of units included in the scope of evaluation accounting for the operating income on the Company's consolidated financial statements | 100.00% | |
| Defects Evaluation Standards | ||
| Category | Financial Reports | Non-financial Reports |
| Qualitative criteria | Major defects: under major operational activities, there are major defects in several companies which are consolidated into the preparation of financial statements, or there are major defects in few of companies which are consolidated into the preparation of financial statements but the Company with major defect are the main one participating into such major operation activities; Substantial defects: under major operational activities, there are substantial defects in few of companies which are consolidated into the preparation of financial statements, or there are moderate defects in several companies which are consolidated into the preparation of financial statements but the Company with major defect are the main on participating into such major operation activities; or there are moderate defects in few of companies which are consolidated into the preparation of financial statements but the Company with moderate defect are the main one participating into such major operation activities; General defects: under major operational activities, there are moderate defects in few of companies which are consolidated into the preparation of financial statements, and the Company with moderate defects is not the main one participating into the major operational activities; or there are only general defects in companies which are consolidated into the preparation of financial statements; there are no internal control | Major defects: under major operational activities, there are major defects in several companies which are consolidated into the preparation of financial statements, or there are major defects in few of companies which are consolidated into the preparation of financial statements but the Company with major defect are the main one participating into such major operation activities; Substantial defects: under major operational activities, there are substantial defects in few of companies which are consolidated into the preparation of financial statements, or there are moderate defects in several companies which are consolidated into the preparation of financial statements but the Company with major defect are the main on participating into such major operation activities; or there are moderate defects in few of companies which are consolidated into the preparation of financial statements but the Company with moderate defect are the main one participating into such major operation activities; General defects: under major operational activities, there are moderate defects in few of companies which are consolidated into the preparation of financial statements, and the Company with moderate defects is not the main one |
defects in major operational activities andthere are only internal control defects inminor operational activities.
| defects in major operational activities and there are only internal control defects in minor operational activities. | participating into the major operational activities; or there are only general defects in companies which are consolidated into the preparation of financial statements; there are no internal control defects in major operational activities and there are only internal control defects in minor operational activities. | |
| Quantitative standard | Major defects: mistaken amount ≥total assets in consolidated financial statement×0.5% Substantial defects: total assets in consolidated financial statement×0.2%≤mistaken amount< total assets in consolidated financial statement×0.5% General defect: mistaken amount <total assets in consolidated financial statement×0.2% | Major defects: amount of direct loss ≥total assets in consolidated financial statement ×0.5% Substantial defects: total assets in consolidated financial statement×0.2%≤ amount of direct loss< total assets in consolidated financial statement×0.5% General defect: amount of direct loss <total assets in consolidated financial statement×0.2% |
| Amount of significant defects in financial reports | 0 | |
| Amount of significant defects in non-financial reports | 0 | |
| Amount of important defects in financial reports | 0 | |
| Amount of important defects in non-financial reports | 0 | |
| Deliberations in Internal Control Audit Report | |
| The accountant firm thinks Shenzhen Nanshan Power Co., Ltd. maintains effective internal control of financial report in all significant aspects in accordance with the Basic Regulation of Enterprise Internal Control | |
| Disclosure date of audit report of internal control (full-text) | 28 March 2019 |
| Index of audit report of internal | “Audit report of internal control for year of 2018” published on Juchao Website |
control (full-text)
| control (full-text) | (www.cninfo.com.cn) |
| Opinion type of auditing report of IC | Standard unqualified |
| whether the non-financial report had major defects | No |
Section X. Corporation Bonds
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date whenannual report approved for released or fail to cash in full on dueNo
Section XI. Financial Report
I. Audit report
| Type of audit opinion | Standard unqualified opinion |
| Name of audit institute | Ruihua Certified Public Accounts (Engagement Partner) |
| Serial of Auditing Report | Ruihua zi[2019]No.48510001 |
| Name of CPA | Zhang Liping, Huang Shaoqin |
Auditor’s Report
Ruihua zi[2019]No.48510001
To Shareholders of Shenzhen Nanshan Power Co., Ltd.I. Auditor’s opinionWe, as the auditors, audited the financial statements of Shenzhen Nanshan Power Co., Ltd. (the “Company”),which included the consolidated balance sheet as of 31 December 2018, the consolidated statement of income, theconsolidated statement of cash flow and the consolidated statement of changes in equity of the Company for theyear ended 31 December 2018, together with the relevant notes thereto.We are the view that the attached financial statements are prepared in accordance with the Business AccountingStandards in all material aspects, which reflect fairly the consolidated financial position of the Company as of 31December 2018 and the operating results and cash flow of the Company for the year of 2018.
II. Basis for audit opinionsWe conducted this audit under the requirements of the Auditing Standards of the Certified Public Accountant ofthe PRC. The section headed “Certified Public Accountant’s responsibility for audit of financial statement” in theaudit report has further clarified our responsibilities under these standards. Pursuant to the code of professionalconduct as certified public accountant in the PRC, we are independent of the Company and have performed otherresponsibility as required by our professional ethics. We believe that the audit evidence obtained by us is sufficientand adequate, which provides foundation for us to issue audit opinion.
III. Key audit issuesKey audit issues refer to those which in our opinion based on our professional judgment are the most importantissues in respect of audit for the current financial statements. We issue audit opinions on these issues in their entityand provide no opinions separately for each of them. We identified the following issues to be the key audit issueswhich need to be discussed and negotiated in the audit report.(I) Impairment of fixed assets1. General descriptionAs at 31 December 2018, the Company has fixed assets with carrying value of RMB 1,405,648,674.64, accountingfor 42.50% of the consolidated total assets and 85.70% of the non-current assets of the Company, which
| 通讯地址：北京市东城区永定门西滨河路8号院7号楼中海地产广场西塔9层 Postal Address:9/F,West Tower of China Overseas Property Plaza, Building 7,NO.8,Yongdingmen Xibinhe Road, Dongcheng District, Beijing 邮政编码（Post Code）：100077 电话（Tel）：+86(10)88095588 传真（Fax）：+86(10)88091199 |
constitutes the essential part of the Company’s assets. The management has assessed whether there is any sign ofimpairment in fixed assets. For those assets with impairment sign identified, the management makes impairmenttest by comparison between the recoverable amount of the fixed assets (calculated individually or the assets groupin which the asset belongs to) and their carrying value.Since recognization of the ending carrying value of fixed assets requires the management to identify the impaireditems and objective evidence for such impairment, estimate the expected cash flow to be received in future and thepresent value, which involves application of material accounting estimates and judgments made by themanagement, we therefore determine that impairment of fixed assets shall be a key audit issue.2.Audit actionsThe major audit procedures adopted by us for this key audit issue include:
(1)assess and test the design and effectiveness of execution of the internal control related to fixed assetsimpairment, including adoption of key assumption and review and approval of amount of impairment provision;(2)select samples of fixed assets to implement supervision procedure, so as to understand whether the assetsexperience backward crafts, long-term idle and load rate;(3)review the procedure adopted by the management to identify impairment sign of fixed assets;(4)obtain the impairment test table for the fixed assets in which impairment sign exists prepared by themanagement, make independent re-review on judgment of assets group so as to make sure whether it belongs tothe minimum assets group that can generate cash flow-in separately. Assess the majoy indicators used by themanagement to identify the assets or assets group’s recoverable amount when it makes fixed assets impairment test.Also, it takes into account the previous operation of the assets or assets group in the history, industry trend, newmarket opportunity and cost and expense reduction resulting from scale effect, in order to evaluate whether thefuture income growth rate, gross profit margin and expense ratio assumptions used by the management is withinthe reasonable range;(5)take use of the works done by internal valuer to evaluate the reasonableness of the impairment test method anddiscount rate used by the management;(6)inspect the relevant disclosure in note 10 “fixed assets” and note 34 “assets impairment” in appendix VI.(II)Recognition of operating income1. Brief descriptionThe Company is mainly engaged in power production and sales. In 2018, the combined operating income is RMB1,884,937,109.00, representing a -year-on-year decrease of 7.86%. the operating income is one of the keyperformance indicators of the Company, and the truthfulness and deadline for calculation of operating income mayexist misstatement. We therefore identify recognition of operating income as key audit issue.
2. Audit actionsThe major audit procedures adopted by us for this key audit issue include:
(1)understand and evaluate the reasonableness of internal control design of the Company’s sales procedure, andtest the effectiveness of execution of relevant key audit internal;(2)review sales contract and interview with the management, analize the significant risks and timing of rewardtransfer relating to recognization of operating income, so as to evaluate the reasonableness of the the Company’spolicies to recognize operating income;(3)make substantial analysis process with respect to operating income and gross profit, and make judgment on thereasonableness of the change in operating income and groww profit for the period;
(4)select samples from the accounting records of operating income and settlement sheet of power rate to review thetruthfulness and completeness of recognization of operating income; inspect receivables records and select samplesto issue letters to enquire the balance of ending trade receivables and amount received in advance. Together withthe collection of trade receivables in subsequent periods, to confirm the truthfulness of sales transactions;(5)make deadline test on operating income to confirm whether the operating income is recorded in appropriateaccounting periods.
IV. Other informationThe Company’s management is responsible for other information, which includes the information covered in the2018 Annual Report except for the financial statements and our audit report.Our audit opinion issued on financial statement does not cover other information, and we would not issue any formof verification conclusion for those information.
To prepare our audit on financial statement, we are required to read other information, and during the procedure, toconsider that whether other information differs materially from the financial statement or the information obtainedby us during the audit or whether there exits material error.
Based on the works done by us, in case we find any material error in other information, we shall report this fact. Inthis regard, we have nothing to report.
V. Management’s responsibility for financial statementsThe Company’s management is responsible for preparing financial statements according to the BusinessAccounting Standards which make fair reflection, and for designing, implementing and maintaining necessaryinternal control system to make sure that there is no material misstatement in the financial statements due to fraudor mistake.
When preparing the financial statements, the management is responsible for assessing the Company’s ability ofcontinuous operation, disclosing the matters relating to continuous operation (if applicable) and applying theassumption of continuous operation, unless the management plans to liquidate the Company, terminate operationor has no other practicable choice.
The governance is responsible for monitoring the financial reporting process of the Company.
VI. Auditor’s responsibility for audit of the financial statementsOur objectives are to obtain reasonable assurance about whether these financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordancewith auditing standards will always be found in the presence of a material misstatement. Misstatements can arisefrom fraud or error and are considered material if, individually or in the aggregate, they could reasonably beexpected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with auditing standards, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
(1)Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
(2)Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances.
(3)Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by management.
(4)Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based onthe audit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Company’s ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in thesefinancial statements or, if such disclosures are inadequate, we have to modify our opinion. Our conclusions arebased on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditionsmay cause the Company to cease to continue as a going concern.
(5)Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,and whether the financial statements represent the underlying transactions and events in a manner that achievesfair presentation.
(6)Obtain adequate and appropriate audit evidence in relation to the financial information of the entities orbusiness transactions of the Company, in order to issue audit opinion on the financial statement. We are responsiblefor guiding, supervising and executing the audit for the Group, and we accept full responsibility for the auditopinion.
We communicate with those charged with governance regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internal control that weidentify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence, and related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were ofmost significance in the audit of the financial statements of the current period and are therefore the key auditmatters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.
| Ruihua CPA(LLP) | Chinese CPA (Engagement partner): Zhang Liping XXX |
| Beijing· China | Chinese CPA: Huang Shaoqin XXX |
| XX March 2019 |
| Consolidated Balance Sheet | |||
| 31st December 2018 Prepared by Shenzhen Nanshan Power Co., Ltd. In RMB/CNY | |||
| Item | Note | Ending amount | Opening amount |
| Current assets: | |||
| Monetary funds | VI.1 | 925,829,404.44 | 438,316,169.81 |
| Financial assets measured by fair value and with variation reckoned into current gains/losses | |||
| Derivative financial liability | |||
| Note receivable and account receivable | VI.2 | 132,430,024.97 | 120,052,275.76 |
| Including: Note receivable | VI.2 | 6,702,500.00 | |
| Accounts receivable | VI.2 | 132,430,024.97 | 113,349,775.76 |
| Accounts paid in advance | VI.3 | 53,655,777.12 | 119,069,891.55 |
| Other receivables | VI.4 | 40,133,297.74 | 38,771,888.74 |
| Including: Interest receivable | |||
| Dividend receivable | |||
| Inventories | VI.5 | 124,758,334.97 | 77,834,903.89 |
| Assets held for sale | |||
| Non-current asset due within one year | |||
| Other current assets | VI.6 | 390,108,844.11 | 452,184,523.24 |
| Total current assets | 1,666,915,683.35 | 1,246,229,652.99 | |
| Non-current assets: | |||
| Finance asset available for sales | VI.7 | 60,615,000.00 | 60,615,000.00 |
| Held-to-maturity investment | |||
| Long-term account receivable | |||
| Long-term equity investment | VI.8 | 16,049,044.95 | 18,254,673.40 |
| Investment property | VI.9 | 2,606,302.71 | 2,802,440.31 |
| Fixed assets | VI.10 | 1,405,649,989.24 | 1,420,620,565.05 |
| Construction in progress | VI.11 | 82,348,008.39 | 50,958,741.92 |
| Productive biological asset | |||
| Oil and gas asset | |||
| Intangible assets | VI.12 | 45,987,255.24 | 48,470,500.60 |
| Expense on Research and Development | |||
| Goodwill | |||
| Long-term expenses to be apportioned | |||
| Deferred income tax asset | VI.13 | 2,071,324.26 | 2,922,036.65 |
| Other non-current asset | VI.14 | 24,905,681.78 | 32,930,781.78 |
| Total non-current asset | 1,640,232,606.57 | 1,637,574,739.71 | |
| Total assets | 3,307,148,289.92 | 2,883,804,392.70 |
| Consolidated Balance Sheet (Cont.) |
| 31st December 2018 Prepared by Shenzhen Nanshan Power Co., Ltd. In RMB/CNY |
| Item | Note | Ending amount | Opening amount |
| Current liabilities: | |||
| Short-term loans | VI.15 | 1,000,000,000.00 | 515,850,000.00 |
| Financial liability measured by fair value and with variation reckoned into current gains/losses | |||
| Derivative financial liability | |||
| Note payable and account payable | VI.16 | 18,065,898.69 | 66,534,493.16 |
| Accounts received in advance | |||
| Wage payable | VI.17 | 44,912,599.66 | 48,337,588.25 |
| Taxes payable | VI.18 | 16,000,039.55 | 15,437,758.76 |
| Other accounts payable | VI.19 | 63,091,881.43 | 86,221,176.90 |
| Including: interest payable | VI.19 | 1,608,290.72 | 3,006,993.33 |
| Dividend payable | |||
| Liability held for sale | |||
| Non-current liabilities due within 1 year | VI.20 | 32,400,000.00 | |
| Other current liabilities | |||
| Total current liabilities | 1,142,070,419.33 | 764,781,017.07 | |
| Non-current liabilities: | |||
| Long-term loans | VI.21 | 25,940,000.00 | 25,940,000.00 |
| Bonds payable | |||
| Including: preferred stock | |||
| Perpetual capital securities | |||
| Long-term account payable | |||
| Long-term wages payable | |||
| Accrual liability | VI.22 | 26,726,232.38 | 26,788,590.38 |
| Deferred income | VI.24 | 75,612,259.33 | 41,948,231.12 |
| Deferred income tax liabilities | |||
| Other non-current liabilities | |||
| Total non-current liabilities | 128,278,491.71 | 94,676,821.50 | |
| Total liabilities | 1,270,348,911.04 | 859,457,838.57 | |
| Shareholders’ equity: | |||
| Share capital | VI.25 | 602,762,596.00 | 602,762,596.00 |
| Other equity instrument |
| Including: preferred stock | |||
| Perpetual capital securities | |||
| Capital public reserve | VI.26 | 362,770,922.10 | 362,770,922.10 |
| Less: Inventory shares | |||
| Other comprehensive income | |||
| Reasonable reserve | |||
| Surplus public reserve | VI.27 | 332,908,397.60 | 332,908,397.60 |
| Provision of general risk | |||
| Retained profit | VI.28 | 679,429,935.81 | 660,176,169.69 |
| Total owner’s equity attributable to parent company | 1,977,871,851.51 | 1,958,618,085.39 | |
| Minority interests | 58,927,527.37 | 65,728,468.74 | |
| Total shareholders’ equity | 2,036,799,378.88 | 2,024,346,554.13 | |
| Total liabilities and shareholders’ equity | 3,307,148,289.92 | 2,883,804,392.70 |
| Consolidated Profit Statement | |||
| 2018 Prepared by Shenzhen Nanshan Power Co., Ltd. In RMB/CNY | |||
| Item | Note | Current Period | Last Period |
| I. Total operation income | 1,884,937,109.00 | 2,045,766,831.74 | |
| Including: operation income | VI.29 | 1,884,937,109.00 | 2,045,766,831.74 |
| II. Total operation cost | 1,900,833,745.47 | 2,041,685,464.04 | |
| Including: operation cost | VI.29 | 1,752,153,327.20 | 1,874,562,988.94 |
| Tax and surcharge | VI.30 | 11,443,320.37 | 12,949,736.84 |
| Sales expense | VI.31 | 3,715,812.95 | 3,046,206.09 |
| Management expense | VI.32 | 93,529,697.87 | 99,021,102.92 |
| R&D expenses | |||
| Financial expense | VI.33 | 39,606,243.43 | 53,518,125.67 |
| Including: interest expenses | VI.33 | 48,580,643.69 | 62,144,226.60 |
| Interest income | VI.33 | 9,503,215.24 | 9,592,999.08 |
| Loss of assets impairment | VI.34 | 385,343.65 | -1,412,696.42 |
| Add” other income | VI.35 | 8,428,575.96 | 7,052,624.36 |
| Investment income (Loss is listed with “-”) | VI.36 | -2,205,628.45 | -2,050,390.78 |
| Including: Investment income on affiliated company and joint venture | |||
| Changing income of fair value(Loss is listed with “-”) | |||
| Income from assets disposal (Loss is listed with “-”) | |||
| III. Operating profit (Loss is listed with “-”) | -9,673,688.96 | 9,083,601.28 | |
| Add: Non-operating income | VI.37 | 39,264,446.03 | 347,199.40 |
| Less: Non-operating expense | VI.38 | 1,141,532.50 | 465,924.38 |
| IV. Total Profit (Loss is listed with “-”) | 28,449,224.57 | 8,964,876.30 | |
| Less: Income tax | VI.39 | 15,996,399.82 | 8,587,799.54 |
| V. Net profit (Net loss is listed with “-”) | 12,452,824.75 | 377,076.76 | |
| (i) Classified by business sustainability | |||
| 1.Net profit from continuing operations (net loss is listed with ‘-”) | 12,452,824.75 | 377,076.76 | |
| 2. Net profit from discontinuing operations (net loss is listed with ‘-”) | |||
| (ii) Classified by ownerships | |||
| 1. Minority’s losses (net loss is listed with ‘-”) | -6,800,941.37 | -15,527,105.71 | |
| 2. Net profit attributable to shareholders of parent company (net loss is listed with ‘-”) | 19,253,766.12 | 15,904,182.47 | |
| VI. Net amount of other comprehensive income after-tax | |||
| VII. Total consolidated income | 12,452,824.75 | 377,076.76 | |
| Total consolidated income attributable to owners of parent company | 19,253,766.12 | 15,904,182.47 | |
| Total consolidated income attributable to minority shareholders | -6,800,941.37 | -15,527,105.71 |
| VIII. Earnings per share | |||
| (i) Basic earnings per share | 0.03 | 0.03 | |
| (ii) Diluted earnings per share | 0.03 | 0.03 |
| Consolidated Cash Flow Statement | |||
| 2018 Prepared by Shenzhen Nanshan Power Co., Ltd. In RMB/CNY | |||
| Item | Note | Current Period | Last Period |
| I. Cash flows arising from operating activities: | |||
| Cash received from selling commodities and providing labor services | 2,165,865,438.32 | 2,430,031,290.63 | |
| Write-back of tax received | 5,096,924.80 | 3,748,024.12 | |
| Other cash received concerning operating activities | VI.40（1） | 57,543,740.20 | 408,447,261.77 |
| Subtotal of cash inflow arising from operating activities | 2,228,506,103.32 | 2,842,226,576.52 | |
| Cash paid for purchasing commodities and receiving labor service | 1,699,322,019.51 | 2,160,856,943.84 | |
| Cash paid to/for staff and workers | 136,763,050.21 | 148,183,894.10 | |
| Taxes paid | 89,933,046.65 | 293,649,368.27 | |
| Other cash paid concerning operating activities | VI.40（2） | 65,924,826.57 | 42,736,514.58 |
| Subtotal of cash outflow arising from operating activities | 1,991,942,942.94 | 2,645,426,720.79 | |
| Net cash flows arising from operating activities | 236,563,160.38 | 196,799,855.73 | |
| II. Cash flows arising from investing activities: | |||
| Cash received from recovering investment | |||
| Cash received from investment income | |||
| Net cash received from disposal of fixed, intangible and other long-term assets | 284,400.00 | ||
| Net cash received from disposal of subsidiaries and other units | |||
| Other cash received concerning investing activities | |||
| Subtotal of cash inflow from investing activities | 284,400.00 | ||
| Cash paid for purchasing fixed, intangible and other long-term assets | 152,775,247.81 | 65,304,848.94 | |
| Cash paid for investment | 1,300,000.00 | ||
| Net cash received from subsidiaries and other units | |||
| Other cash paid concerning investing activities | |||
| Subtotal of cash outflow from investing activities | 152,775,247.81 | 66,604,848.94 | |
| Net cash flows arising from investing activities | -152,490,847.81 | -66,604,848.94 | |
| III. Cash flows arising from financing activities | |||
| Cash received from absorbing investment | |||
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | |||
| Cash received from loans | 1,530,000,000.00 | 740,290,000.00 | |
| Cash received from issuing bonds | |||
| Other cash received concerning financing activities | VI.40（3） | 21,000,000.00 | |
| Subtotal of cash inflow from financing activities | 1,551,000,000.00 | 740,290,000.00 | |
| Cash paid for settling debts | 1,078,250,000.00 | 1,769,840,000.00 | |
| Cash paid for dividend and profit distributing or interest paying | 48,623,516.39 | 54,996,781.30 | |
| Including: Dividend and profit of |
| minority shareholder paid by subsidiaries | |||
| Other cash paid concerning financing activities | VI.40（4） | 5,170,000.00 | 23,133,338.86 |
| Subtotal of cash outflow from financing activities | 1,132,043,516.39 | 1,847,970,120.16 | |
| Net cash flows arising from financing activities | 418,956,483.61 | -1,107,680,120.16 | |
| IV. Influence on cash due to fluctuation in exchange rate | 314,438.45 | -383,837.42 | |
| V. Net increase of cash and cash equivalents | 503,343,234.63 | -977,868,950.79 | |
| Add: Balance of cash and cash equivalents at the period -begin | 411,613,377.07 | 1,389,482,327.86 | |
| VI. Balance of cash and cash equivalents at the period -end | 914,956,611.70 | 411,613,377.07 | |
| Legal rep.: Person in charge of accounting: CFO: Person in charge of accounting org.: | |||
| Consolidated Statement of Changes in Shareholders’ Equity 2018 | |||||||||||||||
| Prepared by Shenzhen Nanshan Power Co., Ltd. In RMB/CNY | |||||||||||||||
| Item | Current Period | ||||||||||||||
| Equity attributable to Shareholder of parent company | Minority’s equity | Total owners’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserve | Inventory shares | Other comprehensive income | Special reserve | Surplus reserves | General risk reserve | Retained profit | |||||||
| Preferred stock | Perpetual debt | Other | |||||||||||||
| I. Balance at the end of the last year | 602,762,596.00 | 362,770,922.10 | 332,908,397.60 | 660,176,169.69 | 65,728,468.74 | 2,024,346,554.13 | |||||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. Balance at the beginning of this year | 602,762,596.00 | 362,770,922.10 | 332,908,397.60 | 660,176,169.69 | 65,728,468.74 | 2,024,346,554.13 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | 19,253,766.12 | -6,800,941.37 | 12,452,824.75 | ||||||||||
| (i) Total comprehensive income | 19,253,766.12 | -6,800,941.37 | 12,452,824.75 | ||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||
| 4. Other | |||||||||||||
| (III) Profit distribution | |||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||
| 4. Other |
| (IV) Carrying forward internal owners’ equity | |||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||
| 4. Change amount of defined benefit plans that carry forward retained earnings | |||||||||||||
| 5. Other | |||||||||||||
| (V) Reasonable reserve | |||||||||||||
| 1. Withdrawal in the report period | |||||||||||||
| 2. Usage in the report period | |||||||||||||
| (VI)Others | |||||||||||||
| IV. Balance at the end of the year | 602,762,596.00 | 362,770,922.10 | 332,908,397.60 | 679,429,935.81 | 58,927,527.37 | 2,036,799,378.88 | |||||||
| Legal rep.: Person in charge of accounting: | |||||||||||||
| CFO: Person in charge of accounting org.: | ||||||||||||||
| Consolidated Statement of Changes in Shareholders’ Equity (Cont.) 2018 Prepared by Shenzhen Nanshan Power Co., Ltd. In RMB/CNY | ||||||||||||||
| Item | Last Period | |||||||||||||
| Equity attributable to Shareholder of parent company | Minority’s equity | Total owners’ equity | ||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: inventory share | Other comprehensive inco | Special reserve | Surplus reserves | General risk reserve | Retained profit | ||||||
| Preferred stock | Perpetual debt | Other | ||||||||||||
| me | ||||||||||||||||||||||||
| I. Balance at the end of the last year | 602,762,596.00 | 362,770,922.10 | 332,908,397.60 | 644,271,987.22 | 81,255,574.45 | 2,023,969,477.37 | ||||||||||||||||||
| Add: Changes of accounting policy | ||||||||||||||||||||||||
| Error correction of the last period | ||||||||||||||||||||||||
| Enterprise combine under the same control | ||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||
| II. Balance at the beginning of this year | 602,762,596.00 | 362,770,922.10 | 332,908,397.60 | 644,271,987.22 | 81,255,574.45 | 2,023,969,477.37 | ||||||||||||||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | 15,904,182.47 | -15,527,105.71 | 377,076.76 | |||||||||||||||||||||
| (i) Total comprehensive income | 15,904,182.47 | -15,527,105.71 | 377,076.76 | |||||||||||||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||||||||||||||
| 1.Common shares invested by | ||||||||||||||||||||||||
| shareholders | |||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||
| 4. Other | |||||||||||||
| (III) Profit distribution | |||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||
| 4. Other | |||||||||||||
| (IV) Carrying forward internal owners’ equity | |||||||||||||
| 1. Capital reserves conversed to capital (share capital) |
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||||||||||
| 4. Change amount of defined benefit plans that carry forward retained earnings | ||||||||||||||||||||
| 5. Other | ||||||||||||||||||||
| (V) Reasonable reserve | ||||||||||||||||||||
| 1. Withdrawal in the report period | ||||||||||||||||||||
| 2. Usage in the report period | ||||||||||||||||||||
| (VI)Others | ||||||||||||||||||||
| IV. Balance at the end of the year | 602,762,596.00 | 362,770,922.10 | 332,908,397.60 | 660,176,169.69 | 65,728,468.74 | 2,024,346,554.13 | ||||||||||||||
| Legal rep.: Person in charge of accounting: CFO: Person in charge of accounting org.: | ||||||||||||||||||||
| Balance Sheet | |||
| 31st December 2018 Prepared by Shenzhen Nanshan Power Co., Ltd. In RMB/CNY | |||
| Item | Note | Ending amount | Opening amount |
| Current assets: | |||
| Monetary funds | 766,041,463.01 | 159,883,551.05 | |
| Financial assets measured by fair value and with variation reckoned into current gains/losses | |||
| Derivative financial assets | |||
| Note receivable and account receivable | XIV.1 | 50,415,180.20 | 17,599,743.80 |
| Including: Note receivable | XIV.1 | ||
| Accounts receivable | XIV.1 | 50,415,180.20 | 17,599,743.80 |
| Accounts paid in advance | 33,326,061.81 | 72,042,056.16 | |
| Other receivables | XIV.2 | 1,048,357,217.53 | 913,646,990.47 |
| Including: Interest receivable | XIV.2 | ||
| Dividend receivable | XIV.2 | ||
| Inventories | 111,279,675.08 | 68,187,593.73 | |
| Assets held for sale | |||
| Non-current asset due within one year | |||
| Other current assets | 362,678,678.87 | 406,616,846.60 | |
| Total current assets | 2,372,098,276.50 | 1,637,976,781.81 | |
| Non-current assets: | |||
| Finance asset available for sales | 60,615,000.00 | 60,615,000.00 | |
| Held-to-maturity investment | |||
| Long-term account receivable | |||
| Long-term equity investment | XIV.3 | 303,341,165.00 | 691,982,849.76 |
| Investment property | |||
| Fixed assets | 284,572,482.22 | 220,519,962.58 | |
| Construction in progress | 16,490,240.75 | 755,227.83 | |
| Productive biological asset | |||
| Oil and gas asset | |||
| Intangible assets | 1,518,096.75 | 2,726,256.15 | |
| Expense on Research and Development | |||
| Goodwill | |||
| Long-term expenses to be apportioned | |||
| Deferred income tax asset | |||
| Other non-current asset | 1,516,600.00 | ||
| Total non-current asset | 666,536,984.72 | 978,115,896.32 | |
| Total assets | 3,038,635,261.22 | 2,616,092,678.13 |
| Balance Sheet (cont.) | |||
| 31st December 2018 Prepared by Shenzhen Nanshan Power Co., Ltd. In RMB/CNY | |||
| Item | Note | Ending amount | Opening amount |
| Current liabilities: | |||
| Short-term loans | 860,000,000.00 | 50,000,000.00 | |
| Financial liability measured by fair value and with variation reckoned into current gains/losses | |||
| Derivative financial liability | |||
| Note payable and account payable | 5,349,562.56 | 40,330,866.72 | |
| Accounts received in advance | |||
| Wage payable | 26,953,632.92 | 23,669,295.53 | |
| Taxes payable | 11,962,377.72 | 5,703,576.67 | |
| Other accounts payable | 157,816,358.94 | 176,969,515.07 | |
| Including: Interest payable | 1,368,932.93 | 175,740.00 | |
| Dividend payable | |||
| Liability held for sale | |||
| Non-current liabilities due within 1 year | |||
| Other current liabilities | |||
| Total current liabilities | 1,062,081,932.14 | 296,673,253.99 | |
| Non-current liabilities: | |||
| Long-term loans | |||
| Bonds payable | |||
| Including: preferred stock | |||
| Perpetual capital securities | |||
| Long-term account payable | |||
| Long-term wages payable | |||
| Accrual liability | |||
| Deferred income | 41,337,945.14 | 23,665,762.95 | |
| Deferred income tax liabilities | |||
| Other non-current liabilities | |||
| Total non-current liabilities | 41,337,945.14 | 23,665,762.95 | |
| Total liabilities | 1,103,419,877.28 | 320,339,016.94 | |
| Shareholders’ equity: | |||
| Share capital | 602,762,596.00 | 602,762,596.00 | |
| Other equity instrument | |||
| Including: preferred stock | |||
| Perpetual capital securities | |||
| Capital public reserve | 289,963,039.70 | 289,963,039.70 | |
| Less: inventory share | |||
| Other comprehensive income | |||
| Reasonable reserve | |||
| Surplus public reserve | 332,908,397.60 | 332,908,397.60 | |
| Provision of general risk | |||
| Retained profit | 709,581,350.64 | 1,070,119,627.89 | |
| Total shareholders’ equity | 1,935,215,383.94 | 2,295,753,661.19 | |
| Total liabilities and shareholders’ equity | 3,038,635,261.22 | 2,616,092,678.13 | |
| Legal rep.: Person in charge of accounting: CFO: Person in charge of accounting org.: | |||
| Profit Statement | |||
| 2018 Prepared by Shenzhen Nanshan Power Co., Ltd. In RMB/CNY | |||
| Item | Note | Current Period | Last Period |
| I. Operating income | XIV.4 | 785,960,951.01 | 717,721,921.44 |
| Less: Operating cost | XIV.4 | 744,134,218.18 | 682,205,576.39 |
| Tax and extras | 2,336,818.62 | 2,282,141.30 | |
| Sales expenses | |||
| Administration expenses | 46,200,286.78 | 39,535,582.03 | |
| R&D expenses | |||
| Financial expenses | -18,931,826.38 | -18,043,755.20 | |
| Including: interest expenses | 36,464,884.41 | 25,554,251.88 | |
| Interest income | 56,241,370.17 | 43,574,507.02 | |
| Losses of devaluation of asset | 388,641,684.76 | -480,710.97 | |
| Add: Other income | 2,687,817.81 | 2,845,401.32 | |
| Investment income (Loss is listed with “-”) | |||
| Including: Investment income on affiliated company and joint venture | |||
| Changing income of fair value(Loss is listed with “-”) | |||
| Income from assets disposal (Loss is listed with “-”) | |||
| II. Operating profit (Loss is listed with “-”) | -373,732,413.14 | 15,068,489.21 | |
| Add: Non-operating income | 23,917,666.03 | 343,403.39 | |
| Less: Non-operating expense | 1,001,588.80 | 453,516.81 | |
| III. Total Profit (Loss is listed with “-”) | -350,816,335.91 | 14,958,375.79 | |
| Less: Income tax expense | 9,721,941.34 | 3,959,377.94 | |
| IV. Net profit (Net loss is listed with “-”) | -360,538,277.25 | 10,998,997.85 | |
| V. Net after-tax of other comprehensive income | |||
| VI. Total comprehensive income | -360,538,277.25 | 10,998,997.85 | |
| Legal rep.: Person in charge of accounting: CFO: Person in charge of accounting org.: | |||
| 2018 Prepared by Shenzhen Nanshan Power Co., Ltd. In RMB/CNY | |||
| Item | Note | Current Period | Last Period |
| I. Cash flows arising from operating activities: | |||
| Cash received from selling commodities and providing labor services | 937,195,103.67 | 934,276,347.06 | |
| Write-back of tax received | |||
| Other cash received concerning operating activities | 36,494,830.38 | 358,865,254.75 | |
| Subtotal of cash inflow arising from operating activities | 973,689,934.05 | 1,293,141,601.81 | |
| Cash paid for purchasing commodities and receiving labor service | 831,681,363.28 | 951,845,462.95 | |
| Cash paid to/for staff and workers | 81,997,181.05 | 89,542,748.57 | |
| Taxes paid | 5,122,624.45 | 223,729,883.68 | |
| Other cash paid concerning operating activities | 31,038,781.40 | 30,734,905.13 | |
| Subtotal of cash outflow arising from operating activities | 949,839,950.18 | 1,295,853,000.33 | |
| Net cash flows arising from operating activities | 23,849,983.87 | -2,711,398.52 | |
| II. Cash flows arising from investing activities: | |||
| Cash received from recovering investment | |||
| Cash received from investment income | |||
| Net cash received from disposal of fixed, intangible and other long-term assets | 269,000.00 | ||
| Net cash received from the disposal of subsidiaries and other business units | |||
| Other cash received concerning investing activities | 578,720,050.85 | 68,709,866.67 | |
| Subtotal of cash inflow from investing activities | 578,989,050.85 | 68,709,866.67 | |
| Cash paid for purchasing fixed, intangible and other long-term assets | 111,411,381.86 | 12,863,619.54 | |
| Cash paid for investment | 1,300,000.00 | ||
| Other cash paid concerning investing activities | 660,000,000.00 | 200,000,000.00 | |
| Subtotal of cash outflow from investing activities | 771,411,381.86 | 214,163,619.54 | |
| Net cash flows arising from investing activities | -192,422,331.01 | -145,453,752.87 | |
| III. Cash flows arising from financing activities | |||
| Cash received from absorbing investment | |||
| Cash received from loans | 1,220,000,000.00 | 180,000,000.00 | |
| Cash received from issuing bonds | |||
| Other cash received concerning financing activities | 11,660,000.00 | 70,000,000.00 | |
| Subtotal of cash inflow from financing activities | 1,231,660,000.00 | 250,000,000.00 | |
| Cash paid for settling debts | 410,000,000.00 | 1,018,500,000.00 | |
| Cash paid for dividend and profit distributing or interest paying | 32,493,128.98 | 20,621,544.44 | |
| Other cash paid concerning financing activities | 2,778,562.50 | 33,811,558.33 | |
| Subtotal of cash outflow from financing activities | 445,271,691.48 | 1,072,933,102.77 | |
| Net cash flows arising from financing activities | 786,388,308.52 | -822,933,102.77 | |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 1,950.58 | -2,045.15 | |
| V. Net increase of cash and cash equivalents | 617,817,911.96 | -971,100,299.31 | |
| Add: Balance of cash and cash equivalents at the period -begin | 148,223,551.05 | 1,119,323,850.36 | |
| VI. Balance of cash and cash equivalents at the period -end | 766,041,463.01 | 148,223,551.05 | |
| Legal rep.: Person in charge of accounting: CFO: Person in charge of accounting org.: | |||
| Changes of Shareholders Equity | ||||||||||||
| 2018 | ||||||||||||
| Prepared by Shenzhen Nanshan Power Co., Ltd. | In RMB/CNY | |||||||||||
| Item | Current Period | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: inventory share | Other comprehensive income | Special reserve | Surplus reserves | General risk reserve | Retained profit | Total owners’ equity | |||
| Preferred stock | Perpetual debt | Other | ||||||||||
| I. Balance at the end of the last year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 1,070,119,627.89 | 2,295,753,661.19 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. Balance at the beginning of this year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 1,070,119,627.89 | 2,295,753,661.19 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with | -360,538,277.25 | -360,538,277.25 | ||||||||||
| “-”) | ||||||||||||
| (I) Total comprehensive income | -360,538,277.25 | -360,538,277.25 | ||||||||||
| (II) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (III) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Withdrawal of general risk provisions | ||||||||||||
| 3. Distribution for owners (or shareholders) | ||||||||||||
| 4. Other | ||||||||||||
| (IV) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed |
| to capital (share capital) | |||||||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||||||
| 4. Change amount of defined benefit plans that carry forward retained earnings | |||||||||||||||||||
| 5. Other | |||||||||||||||||||
| (V) Reasonable reserve | |||||||||||||||||||
| 1. Withdrawal in the report period | |||||||||||||||||||
| 2. Usage in the report period | |||||||||||||||||||
| (VI)Others | |||||||||||||||||||
| IV. Balance at the end of the year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 709,581,350.64 | 1,935,215,383.94 | ||||||||||||||
| Legal rep.: Person in charge of accounting: CFO: Person in charge of accounting org.: | |||||||||||||||||||
| Changes of Shareholders Equity (Cont.) | ||||||||||||
| 2018 | ||||||||||||
| Prepared by Shenzhen Nanshan Power Co., Ltd. | In RMB/CNY | |||||||||||
| Item | Current Period | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: inventor | Other co | Special re | Surplus reserves | General risk rese | Retained profit | Total owners’ equity | |||
| Preferre | Perp | Othe | ||||||||||
| d stock | etual debt | r | y share | mprehensive income | serve | rve | ||||||
| I. Balance at the end of the last year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 1,059,120,630.04 | 2,284,754,663.34 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. Balance at the beginning of this year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 1,059,120,630.04 | 2,284,754,663.34 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | 10,998,997.85 | 10,998,997.85 | ||||||||||
| (I) Total comprehensive income | 10,998,997.85 | 10,998,997.85 | ||||||||||
| (II) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments |
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (III) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Withdrawal of general risk provisions | ||||||||||||
| 3. Distribution for owners (or shareholders) | ||||||||||||
| 4. Other | ||||||||||||
| (IV) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Change amount of defined benefit plans that carry forward retained earnings | ||||||||||||
| 5. Other | ||||||||||||
| (V) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period |
| 2. Usage in the report period | |||||||||||||||||||
| (VI)Others | |||||||||||||||||||
| IV. Balance at the end of the year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 1,070,119,627.89 | 2,295,753,661.19 | ||||||||||||||
| Legal rep.: Person in charge of accounting: CFO: Person in charge of accounting org.: | |||||||||||||||||||
2018年度财务报表附注
Shenzhen Nanshan Power Co., Ltd.
Notes to financial statement 2018
(Unless otherwise stated, the amount of unit is RMB/CNY)I. Company Profile
Shenzhen Nanshan Power Co., Ltd (hereinafter called as “Company”) was reorganized to be a joint-stock enterprise from aforeign investment enterprise on 25 November 1993, upon the approval of General Office of Shenzhen MunicipalGovernment with Document Shen Fu Ban Fu [1993] No.897.
After approved by Document Shen Zhu Ban Fu [1993] No.179 issued by Shenzhen Securities Regulatory Office, on 3January 1994, the Company offered 40,000,000 RMB common shares and 37,000,000 domestically listed foreign shares inand out of China. And the RMB common shares (A-stock) and domestically listed foreign listed shares (B-stock) were listedin Shenzhen Securities Exchange successively on July 1, 1994 and Nov. 28, 1994.Headquarter of the Company located on 16/F, 17/F, Han Tang Building, OCT, Nanshan District, Shenzhen City, GuangdongProvince, P.R.C.The financial statement has met with approval for report by the resolution of the Board on 26 March 2019Totally 9 subsidiaries included in consolidate scope for the year of 2018.The Company together with its subsidiaries is mainly engaged in businesses as production of power and heat, power plantconstruction, fuel trading, engineering consulting and and sludge drying etc.
II. Preparation basis of Financial Statements
The Group’s financial statements have been prepared based on the going concern assumption and based on actualtransactions and events. In accordance with the Accounting Standards for Business Enterprises- Basic Norms (Ministry ofFinance Order No.33 Issued, Ministry of Finance Order No.76 Revised) promulgated by the Ministry of Finance of PRC on15 February 2006 and 42 specific accounting standards, the subsequently promulgated application guidelines of theAccounting Standards for Business Enterprises, interpretations and other related rules of the Accounting Standards forBusiness Enterprises (hereinafter referred to as “ASBEs”), and the disclosure requirements of the “Regulation on thePreparation of Information Disclosures of Companies Issuing Public Shares, No. 15- General Requirements for FinancialReports” (revised in 2014) of China Securities Regulatory Commission.The Group’s financial statements have been prepared on an accrual basis in accordance with the ASBEs. Except for certainfinancial instruments, the financial statements are prepared under the historical cost convention. In the event thatdepreciation of assets occurs, a provision for impairment is made accordingly in accordance with the relevant regulations.
III. Statement on observation of Accounting Standard for Business Enterprises
The Financial Statements are up to requirements of corporate accounting principles, and also a true and thorough reflectionto the Group together with its financial information as financial position on 31
st
December 2018, and the Company togetherwith its operation results, and cash flow for the semi-annual of 2018. In addition, the financial statements of the Group alsocomply with, in all material respects, the disclosure requirements of the “Regulation on the Preparation of InformationDisclosures of Companies Issuing Public Shares, No. 15--General Requirements for Financial Reports” revised by the China
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Securities Regulatory Commission in 2014 and the notes thereto.
IV. Major Accounting Policies and Estimation
The Company together with its subsidiaries is mainly engaged in businesses as production of power and heat, power plantconstruction, fuel trading, engineering consulting and and sludge drying.According to the actual production and operationcharacteristics, the Company and its subsidiaries establish certain specific accounting policies and accounting estimates inrespect of their transactions and matters such as sales revenue recognition pursuant to relevant business accountingprinciples. Details are set out in 22 Description of revenue items under Note IV. For explanation on material accountingjudgment and estimate issued by the management, please refer to 28 Material accounting judgment and estimate under NoteIV.1. Accounting periodAccounting period of the Group divide into annual and medium-term, and the medium-term is the reporting period thatshorter than one completed accounting year. The Group’s accounting year is Gregorian calendar year, namely from 1
st
January to 31
st
December.
2.Operating cycle
Normal operating cycle refers to the period from purchase of assets used for processing to realization of cash or cashequivalents. Our operation cycle is 12 months which is also serving as the liquidity classification standard for assets andliabilities.
3.Book-keeping standard currency
RMB is the currency in the Group’s main business economic environment and the bookkeeping standard one, which isadopted in preparation of the financial statements.
4. Accounting treatment on enterprise combine under the same control and under the differentcontrol
Enterprise combination refers to a trading or event that two or over two independent enterprise/s combined to one reportingbody. The combination was divided into enterprise consolidation under the same control and the one not under the samecontrol.(1) Consolidation of enterprises under the same controlThe enterprises involved in the consolidation are all under the final control of one party or parties and the control is nottemporary. That is the corporate consolidation under the common control. For a business combination involving enterprisesunder common control, the party that, on the combination date, obtains control of another enterprise participating in thecombination is the absorbing party, while that other enterprise participating in the combination is a party being absorbed.The combination date is the date on which one combining enterprise effectively obtains control of the other combiningenterprises.Assets and liabilities obtained by the absorbing party are measured at their carrying amount at the combination date asrecorded by the party being merged. The difference between the carrying amount of the net assets obtained and the carryingamount of the consideration paid for the combination (or the aggregate nominal value of shares issued as consideration) is
2018年度财务报表附注
charged to the capital reserve (share capital premium). If the capital reserve (share capital premium) is not sufficient toabsorb the difference, any excess shall be adjusted against retained earnings.Cost incurred by the absorbing party that is directly attributable to the business combination shall be charged to profit or lossin the period in which they are incurred.(2) Consolidation of enterprises not under the same controlThe enterprises involved in the consolidation are ones not under the same final control of the common party or partiesbefore and after the consolidation. That is the corporate consolidation under the different control. For a businesscombination not involving enterprises under common control, the party that, on the acquisition date, obtains control ofanother enterprise participating in the combination is the acquirer, while that other enterprise participating in thecombination is the acquiree. The acquisition date is the date on which the acquirer effectively obtains control of theacquiree.For business combination involving entities not under common control, the cost of a business combination is the aggregateof the fair values, on the date of acquisition, of assets given, liabilities incurred or assumed, and equity instruments issued bythe acquirer to be paid by the acquirer, in exchange for control of the acquire plus agency fee such as audit, legal service andevaluation consultation and other management fees charged to the profit or loss for the period when incurred. As equity orbond securities are issued by the acquirer as consideration, any attributable transaction cost is included in their initial costs.Involved or contingent consideration charged to the combination cost according to its fair value on the date of acquisition,the combined goodwill would be adjusted if new or additional evidence existed about the condition on the date ofacquisition within twelve months after the acquisition date, which is required to adjust the contingent consideration. Thecombination cost incurred by the acquirer and the identifiable net assets acquired from the combination are measured at theirfair values. Where the cost of a business combination exceeds the acquirer’s interest in the fair value of the acquiree’sidentifiable net assets on the acquisition date, the difference is recognized as goodwill. Where the cost of a businesscombination is less than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the acquirer shallfirst reassess the measurement of the fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities andthe measurement of the cost of combination. If after such reassessment the cost of combination is still less than theacquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is charged to profit or loss for theperiod.Where the acquiree’s deductible temporary difference acquired by the acquirer is not yet recognized as it does not satisfy therecognition conditions of the deferred income tax assets on the acquisition date, but new or additional information provesthat the relevant circumstances have already existed on the acquisition date within twelve months after the acquisition date,which estimates that the economic benefits incurred from the deductible temporary difference at the acquisition date ofacquirer can be realized, then the relevant deferred income tax assets will be recognized, and the goodwill will be reduced atthe same time, if the goodwill is not sufficient to be absorbed, any excess shall be recognized in the profit or loss for theperiod. Except as disclosed above, the deferred income tax assets related to the business combination are charged to theprofit or loss for the period.For a business combination not under common control is finished by a stage-up approach with several transactions, theseseveral transactions will be judged whether they fall within “transactions in a basket” in accordance with the judgmentstandards on “transactions in a basket” as set out in the Notice of the Ministry of Finance on Issuing Accounting Standardsfor Business Enterprises Interpretation No. 5 (Cai Kuai [2012] No. 19) and Article 51 of the “Accounting Standards forBusiness Enterprise No.33- Consolidated Financial Statement” (see Note IV. 5(2)). If they fall within “transactions in abasket”, they are accounted for with reference to the descriptions as set out in the previous paragraphs of this section andNote IV. 12 “Long-term equity investments”, and if they do not fall within “transactions in a basket”, they are accounted forin separate financial statements and consolidated financial statements:
In separate financial statement, the sum between carrying value of the equity investment prior to acquisition date and cost of
2018年度财务报表附注
additional investment made on the acquisition date is deemed to be the initial investment cost of this investment. Othercomprehensive income recognized for equity investment held prior to combination date under equity method shall beaccounted for when the Company disposes of this investment on the same basis as the investee directly disposes of relevantassets or liabilities, which means that other than the changes arising from re-measuring the acquiree’s net liabilities or netassets under defined benefit plan under equity method, it shall be included in investment income of the current period.In consolidated financial report, for equity of bought party held before purchasing, re-measured by fair value on purchaseddate, and the difference of fair value and its book value should reckoned into current investment income; Othercomprehensive income recognized for equity investment held prior to combination date under equity method shall beaccounted for when the Company disposes of this investment on the same basis as the investee directly disposes of relevantassets or liabilities, which means that other than the changes arising from re-measuring the acquiree’s net liabilities or netassets under defined benefit plan under equity method, it shall be included in investment income of the current period datedpurchasing day.5. Preparation methods for consolidated statement(1) Determining principle for consolidated financial report scopeThe scope is determined on the basis of control. Control refers to the Company possess rights over the investee party, andenjoyed variable return through participate in the relevant activities of the investee party, and the Company has ability toimpact the amount of returns by using the rights over investee party. The consolidated scope includes the Group and all thesubsidiaries. Subsidiary is referring to the enterprise or the subject controlled by the Company.Once change of relevant facts and conditions results in change to relevant factors involved in the above definition, theCompany will make further assessment.
(2) Preparation methods for corporate consolidated statements
Subsidiaries are consolidated from the date on which the Group obtains net assets and the effective control of decisionmaking of production and operation are deconsolidated from the date that such control ceases. For disposal of subsidiaries,the operating results and cash flows of such subsidiaries before the date of disposal are properly included in the consolidatedincome statement and consolidated cash flow statements; for disposal of subsidiaries during the reporting period, noadjustment shall be made to the opening balance of the consolidated balance sheet. For those subsidiaries acquired throughbusiness combination not under common control, the operating results and cash flows after the acquisition date have beenproperly included in the consolidated income statements and consolidated cash flow statements. No adjustments shall bemade to the opening balance and the comparative figures of the consolidated financial statements. For those subsidiariesacquired through business combination under common control and acquiree absorbed through combination, the operatingresults and cash flows from the beginning of the consolidation period to the consolidation date are also presented in theconsolidated income statement and the consolidated cash flow statements. The comparative figures presented in theconsolidated financial statements are also adjusted accordingly.The financial statements of the subsidiaries are adjusted in accordance with the accounting policies and accounting period ofthe Company in the preparation of the consolidated financial statements, where the accounting policies and the accountingperiods are inconsistent between the Company and the subsidiaries. For subsidiaries acquired from business combination notunder common control, the financial statements of the subsidiaries will be adjusted according to the fair value of theidentifiable net assets at the acquisition date.All intra-group significant balances, transactions and unrealized profit are eliminated in the consolidated financialstatements.As for the subsidiary’s shareholders’ equity and the parts that does not owned the Group in current net gains/losses, listedout independently as minority shareholders’ equity and minority shareholders gains/losses in item of shareholders’ equityand net profit contained in consolidated financial statement separately. The amount attributable to minority shareholders’
2018年度财务报表附注
equity of current net loss/gains of subsidiaries is listed in the net profit item of consolidated profit as minority shareholders’equity. When the share of losses attributable to the minor shareholders has exceeded their shares in the owners’ equity at thebeginning of term attributable to minority shareholders in the subsidiary, the balance shall offset the minor shareholders’equity.For control rights loss in original subsidiary for partial equity investment disposal or other reasons, the remained equityshould re-measured based on the fair value at date of control losses. The difference between the net assets of originalsubsidiary share by proportion held that sustainable calculated since purchased date and sum of consideration obtained byequity disposal and fair value of remain equity, reckoned into the current investment income of control rights loss. Othercomprehensive income relating to equity investment in original subsidiary shall be accounted for, upon lost of control, underthe same basis as the acquiree would otherwise adopt when relevant assets or liabilities are disposed directly by the acquiree,which means that other than the changes arising from re-measuring the original subsidiary’s net liabilities or net assets underdefined benefit plan, it shall be included in investment income of the current period. The remaining equity interests aremeasured subsequently according to “Accounting Standard for Business Enterprises No. 2 – Long-term Equity Investments”or “Accounting Standard for Business Enterprises No. 22 – Recognition and Measurement of Financial Instruments”. SeeNote IV.12 “Long-term equity investments” or Note IV.9 “Financial instruments” for details.When the Company disposes of equity investment in a subsidiary by a stage-up approach with several transactions until thecontrol over the subsidiary is lost, it shall determine whether these several transactions related to the disposal of equityinvestment in a subsidiary until the control over the subsidiary is lost fall within “transactions in a basket”. Usually, theseseveral transactions related to the disposal of equity investment in a subsidiary are accounted for as transactions in a basketwhen the terms, conditions and economic impacts of these several transactions meet the following one or more conditions:
① these transactions are entered into at the same time or after considering their impacts on each other; ② thesetransactions as a whole can reach complete business results; ③ the occurrence of a transaction depends on at least theoccurrence of an other transaction; ④ an individual transaction is not deemed as economic, but is deemed as economicwhen considered with other transactions. If they are not transactions in a basket, each of which are accounted for inaccordance with applicable rules in “partial disposal of long-term equity investment of a subsidiary without losing controlover a subsidiary” (see Note IV. 12 (2) ④) separately, and “the control over a subsidiary is lost due to partial disposal ofequity investment or other reasons” (see the preceding paragraph). When several transactions related to the disposal ofequity investment in a subsidiary until the control over the subsidiary is lost fall within transactions in a basket, each ofwhich is accounted for as disposal of a subsidiary with a transaction until the control over a subsidiary is lost; however, thedifferent between the amount of disposal prior to the loss of control and the net assets of a subsidiary attributable to thedisposal investment shall be recognized as other comprehensive income in consolidated financial statements and transferredto profit or loss for the period at the time when the control is lost.
6.Classification of joint arrangement and accounting treatment on conduct joint operationJoint arrangement refers to such arrangement as jointly controlled by two or more participators. The Company classifiesjoint arrangement into joint operation and joint venture according to the rights it is entitled to and obligations it assumes.Under joint operation, the Company is entitled to relevant assets under the arrangement and assumes relevant liabilitiesunder the arrangement. Joint venture refers to such joint arrangement under which the Company is only entitled to the netassets of the arrangement.Equity method is adopted for investment in joint ventures, and it is accounted for under the accounting policies set out in12(2) ② “long term equity investment under equity method” under Note IV.As a joint party under joint operation, the Company recognizes the assets and liabilities it separately holds and assumes, theassets and liabilities it jointly holds and assumes under the proportion, the revenue from disposal of the output which theCompany is entitled to under the proportion, the revenue from disposal of the output under the proportion and the separately
2018年度财务报表附注
occurred expenses as well as expenses occurred for joint operations under its proportion.
For injection to or disposal of assets of joint operations (other than those assets constituting business operation) or forpurchase of assets from joint operations, gain or loss arising from the transaction is only recognized to the extent it isattributable to other parties to the joint operation before the joint operation is sold to any third party. In case that asset occurasset impairment loss under Accounting Standards for Business Enterprise No.8-Assets Impairment, the Companyrecognizes this loss in full in connection with injection to or disposal of assets of joint operations, and recognizes this lossbased on the proportion in connection with purchase of assets from joint operations.
7. Determination criteria of cash and cash equivalent
Cash and cash equivalents of the Group include cash on hand, deposits readily available for payment purpose and short-term(normally fall due within three months from the date of acquisition) and highly liquid investments held the Group which arereadily convertible into known amounts of cash and which are subject to insignificant risk of value change.
8.Foreign currency business and foreign currency statement translation(1) Foreign currency business translation
Foreign currency transactions are translated into the Company’s functional currency at the spot rate on transaction date(generally refers to the middle rate of prevailing foreign exchange rate released by the PBOC) when the transactions areinitially measured. However, foreign currency exchange business or transaction involving foreign currency exchangeoccurred by the Company are translated into functional currency at the effective exchange rate adopted.(2) Translation of foreign currency monetary items and foreign currency non-monetary itemsOn balance sheet date, foreign currency monetary items are translated at the spot rate as of balance sheet date, and theexchange difference shall be included in current period gains and losses, except ①exchange difference arising from foreigncurrency special borrowings relating to purchasing assets satisfying capitalization conditions is stated under capitalizationprinciple of borrowing expenses; ②exchange difference arising from hedge instruments used as effective hedging of netinvestment in overseas operation (such difference shall be included in other comprehensive income and recognized ascurrent period gains and losses when the net investment is disposed); and ③exchange difference arising from change ofcarrying balance of available for sale foreign currency monetary items other than amortized cost is included in othercomprehensive income.When preparing consolidated financial statement involving overseas operation, in case there is foreign currency monetaryitems which substantially constitute net investment in overseas operation, the exchange difference arising from exchangerate fluctuation shall be included in other comprehensive income; and shall transfer to gains and losses from disposal for thecurrent period when the overseas operation is disposed of.
Non-monetary items measured in historical cost are still measured by sum on the bookkeeping standard currency atthe current exchange rate. The items measured by the fair value are converted at the current rate on the fair value recognitionday. The difference is dealt as the fair value change and reckoned into the current loss/gain or recognized as the otherconsolidated income and reckoned into the reserve.(3) Translation of foreign currency financial statementWhen preparing consolidated financial statement involving overseas operation, in case there is foreign currency monetaryitems which substantially constitute net investment in overseas operation, the exchange difference arising from exchangerate fluctuation shall be included in other comprehensive income as “translation difference of foreign currency statement”;
2018年度财务报表附注
and shall transfer to gains and losses from disposal for the current period when the overseas operation is disposed of.Foreign currency financial statement for overseas operation is translated into RMB statement by the following means: assetsand liabilities in balance sheet are translated at the spot rate as of balance sheet date; owner’s equity items (other thanundistributed profit) are translated at the spot rate prevailing on the date of occurrence. Income and expense items in profitstatement are translated at the spot rate prevailing on the date of transactions. Beginning undistributed profit represents thetranslated ending undistributed profit of previous year; ending undistributed profit is allocated and stated as several itemsupon translation. Upon translation, difference between assets, liabilities and shareholders’ equity items shall be recorded asforeign currency financial statement translation difference and recognized as other comprehensive income. In case ofdisposal of overseas operation where control is lost, foreign currency financial statement translation difference relating tothe overseas operation as stated under shareholders’ equity in balance sheet shall be transferred to current gains and losses ofdisposal in full or under the proportion it disposes.Foreign currency cash flow and cash flow of overseas subsidiary are translated at the spot rate prevailing on the date ofoccurrence of cash flow. Influence over cash from exchange rate fluctuation is taken as adjustment items to separately statedin cash flow statement.The beginning figure and previous year actual figures are stated at the translated figures in previous year financial statement.If the Company loses control over overseas operation due to disposal of all the owners’ equity or part equity investment inthe overseas operation or other reasons, foreign currency financial statement translation difference relating to the overseasoperation attributable to owners’ equity of parent company as stated under shareholders’ equity in balance sheet shall betransferred to current gains and losses of disposal in full.If the Company reduces equity proportion while not loses control over overseas operation due to disposal of part equityinvestment in the overseas operation or other reasons, foreign currency financial statement translation difference relating tothe disposed part will be vested to minority interests and will not transfer to current gains and losses. When disposing partequity interests of overseas operation which is the associate or joint venture, foreign currency financial statement translationdifference relating to the overseas operation shall transfer to current disposal gains and losses according to the disposedproportion.
9.Financial instrument
Financial asset or financial liability is recognized when the Company becomes a party to financial instrument contract.Financial assets and liabilities are initially measured at fair value. For financial assets and liabilities at fair value throughprofit or loss, the relevant transaction fee shall be included in profit or loss directly. For other types of financial assets andliabilities, the relevant transaction fee is included in initial measurement amount.(1) Recognition of fair value for financial assets and financial liabilitiesFair value represents the price that market participator can receive for disposal of an asset or he should pay for transfer of aliability in an orderly transaction happened on the measurement date. As for instrument in active market, the fair value isadopted according to the quotation in the active market. Quote in active market refers to the price easy to obtain regularlyfrom exchange; broker’s agency, industry association and pricing service authority etc., and such quote represent a price thatactually occurred in market trading during the fair transaction. As for the instruments not in the active market, the fair valueis recognized by the estimation technology. The technology is composed of the price in the latest fair trade, fair valueaccording to the fundamentally same instruments, cash flow discount and stock price-setting model.(2) Classification, recognition and measurement of financial assetsBy way of buying and selling the financial assets in a regular way, recognition and derecognition are carried out according
2018年度财务报表附注
to the accounts on the transaction day. Financial assets are divided into financial assets at fair value through profit or loss,held-to-maturity investments, loans and accounts receivable and available for-sale financial assets when they are initiallyrecognized. Financial assets are initially recognized at fair value. For financial assets classified as fair value through profit orloss, relevant transaction costs are directly recognized in profit or loss for the period. For financial assets classified as othercategories, relevant transaction costs are included in the amount initially recognized.① Financial assets carried at fair value through profit or loss for the current periodThey include financial assets held for trading and financial assets designated as at fair value through profit or loss for thecurrent period.Financial assets may be classified as financial assets held for trading if one of the following conditions is met: A. thefinancial assets is acquired or incurred principally for the purpose of selling it in the near term; B. the financial assets is partof a portfolio of identified financial instruments that are managed together and for which there is objective evidence of arecent pattern of short-term profit-taking; or C. the financial assets is a derivative, excluding the derivatives designated aseffective hedging instruments, the derivatives classified as financial guarantee contract, and the derivatives linked to anequity instrument investment which has no quoted price in an active market nor a reliably measured fair value and arerequired to be settled through that equity instrument.A financial asset may be designated as at fair value through profit or loss upon initial recognition only when one of thefollowing conditions is satisfied: A. Such designation eliminates or significantly reduces a measurement or recognitioninconsistency that would otherwise result from measuring assets or recognizing the gains or losses on them on differentbases; or B. The financial asset forms part of a group of financial assets or a group of financial assets and financial liabilities,which is managed and its performance is evaluated on a fair value basis, in accordance with the Group’s documented riskmanagement or investment strategy, and information about the grouping is reported to key management personnel on thatbasis.Financial assets carried at fair value through profit or loss for the current period is subsequently measured at fair value. Thegain or loss arising from changes in fair value and dividends and interest income related to such financial assets are chargedto profit or loss for the current period.
② Held-to-maturity investmentsThey are non-derivative financial assets with fixed maturity dates and fixed or determinable payments that the Company haspositive intent and ability to hold to maturity.Held-to-maturity investments are subsequently measured at amortized cost using the effective interest method. Gain or losson derecognition, impairment or amortization is recognized through profit or loss for the current period.The effective interest method is a method of calculating the amortized cost of a financial asset and of allocating interestincome or expense over each period based on the effective interest of a financial asset or a financial liability (including agroup of financial assets or financial liabilities). The effective interest is the rate that discounts future cash flows from thefinancial asset or financial liability over its expected life or (where appropriate) a shorter period to the carrying amount ofthe financial asset or financial liability.In calculating the effective interest rate, the Company will estimate the future cash flows (excluding future credit losses) bytaking into account all contract terms relating to the financial assets or financial liabilities whilst considering various fees,transaction costs and discounts or premiums which are part of the effective interest rate paid or received between the partiesto the financial assets or financial liabilities contracts.③ Loans and receivablesThey are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.Financial assets, including bills receivable, accounts receivable, the Group classifies interest receivable, dividends
2018年度财务报表附注
receivable and other receivables as loans and receivables.Loans and receivables are measured subsequently at the amortized cost by using the effective interest rate method. Gains orlosses incurred at the time of derecognition, impairment or amortization are charged to profit or loss for the current period.④ Available-for-sale financial assetsThey include non-derivative financial assets that are designated in this category on initial recognition, and the financialassets other than the financial assets at fair value through profit and loss, loans and receivables and held-to-maturityinvestments.The closing cost of available-for-sale debt instruments are determined based on amortized cost method, which means theamount of initial recognition less the amount of principle already repaid, add or less the accumulated amortized amountarising from the difference between the amount initially recognized and the amount due on maturity using effective interestrate method, and less the amount of impairment losses recognized. The closing cost of available-for-sale equity instrumentsis equal to its initial acquisition cost.Available-for-sale financial assets are subsequently measured at fair value. The gain or loss on change in fair value arerecognized as other comprehensive income and charged to capital reserves, except for impairment loss and exchangedifferences arising from foreign monetary financial assets and amortized cost which are accounted for through profit or lossfor the current period. The financial assets will be transferred out of the financial assets on derecognition and accounted forthrough profit or loss for the current period. However, equity instrument investment which is not quoted in active marketand whose fair value cannot be measured reliably, and derivative financial asset which is linked to the equity instrument andwhose settlement is conditional upon delivery of the equity instrument, shall be subsequently measured at cost.Interests received from available-for-sale financial assets held and the cash dividends declared by the investee arerecognized as investment income.
(3) Impairment of financial assets
Except for financial assets accounted at fair value and variation accounted into current gain/loss account, the Groupundertakes inspection on the book value of other financial assets at each balance sheet day, whenever practical evidenceshowing that impairment occurred with them, impairment provisions are provided.The Group performs impairment test separately on individual financial assets with major amounts; for financial assetswithout major amounts, the Group performs impairment test separately or inclusively in a group of financial assets withsimilar characteristics of risks. Those financial assets (individual financial assets with or without major amounts) testedseparately with no impairment found shall be tested again along with the group of financial assets with similar riskcharacteristics. Financial assets confirmed for impairment individually shall not be tested along with the group of financialassets with similar risk characteristics.① Impairment of held-to-maturity investments and loans and receivablesThe carrying amount of financial assets measured as costs or amortized costs are subsequently reduced to the present valuediscounted from its projected future cash flow. The reduced amount is recognized as impairment loss and recorded as profitor loss for the period. After recognition of the impairment loss from financial assets, if there is objective evidence showingrecovery in value of such financial assets impaired and which is related to any event occurring after such recognition, theimpairment loss originally recognized shall be reversed to the extent that the carrying value of the financial assets uponreversal will not exceed the amortized cost as at the reversal date assuming there is no provision for impairment.② Impairment of available-for-sale financial assetsIn the event that decline in fair value of the available-for-sale equity instrument is regarded as “severe decline” or“non-temporary decline” on the basis of comprehensive related factors, it indicates that there is impairment loss of theavailable-for-sale equity instrument.
2018年度财务报表附注
When the available-for-sale financial assets impair, the accumulated loss originally included in the capital reserve arisingfrom the decrease in fair value was transferred out from the capital reserve and included in the profit or loss for the period.The accumulated loss that transferred out from the capital reserve is the balance of the acquired initial cost of asset, afterdeduction of the principal recovered, amortized amounts, current fair value and the impairment loss originally included inthe profit or loss.After recognition of the impairment loss, if there is objective evidence showing recovery in value of such financial assetsimpaired and which is related to any event occurring after such recognition in subsequent periods, the impairment lossoriginally recognized shall be reversed. The impairment loss reversal of the available-for-sale equity instrument will berecognized as other consolidated income, and the impairment loss reversal of the available-for-sale debt instrument will beincluded in the profit or loss for the period.When an equity investment that is not quoted in an active market and the fair value of which cannot be measured reliably, orthe impairment loss of a derivative financial asset linked to the equity instrument that shall be settled by delivery of thatequity instrument, then it will not be reversed.(4) Recognition basis and measurement method for transfer of financial assetsAs for the financial assets up to the following conditions, the recognition termination is available: ①Termination of thecontract right to take the cash flow of the financial assets; ② transferred to the transferring-in part nearly all risk andcompensation; ③ all risk and compensation neither transferred nor retained, and with the give-up of the control over thefinancial assets.As for financial assets of almost all risk and compensation neither transferred nor retained, and without the give-up of thecontrol over the financial assets, it was recognized according to the extension of the continual entry into the transferredfinancial assets and relevant liabilities are correspondingly recognized. The continual entry into the transferred financialassets is risk level which the enterprise faces up to due to the assets changes.As for the whole transfer of the financial assets up to the recognition termination conditions, the book value of thetransferred assets, together with the difference between the consideration value and the accumulative total of the fair valuechange of the other consolidated income, is reckoned into the current gain/loss.As for the partial transfer of the financial assets up to the recognition termination conditions, the book value of thetransferred assets is diluted on the relative fair value between the terminated part and the un-terminated part; and reckonedinto the current loss/gain is the difference between the sum of the consideration value and the accumulative sum of thevaluation change ought to be diluted into the recognition termination part but into the other consolidated income, and theabove diluted book value, is reckoned into the current loss/gain.For financial assets that are transferred with recourse or endorsement, the Group needs to determine whether the risk andrewards of ownership of the financial asset have been substantially transferred. If the risk and rewards of ownership of thefinancial asset have been substantially transferred, the financial assets shall be derecognized. If the risk and rewards ofownership of the financial asset have been retained, the financial assets shall not be derecognized. If the Group neithertransfers nor retains substantially all the risks and rewards of ownership of the financial asset, the Group shall assesswhether the control over the financial asset is retained, and the financial assets shall be accounted for according to the aboveparagraphs.(5) Categorizing and measuring of financial liabilitiesAt initial recognition, financial liabilities are classified into financial liabilities measured by fair value with changes countedinto current gains/losses and other financial liabilities. Financial liabilities are initially recognized at fair value. For financialliabilities classified as fair value through profit or loss, relevant transaction costs are directly recognized in profit or loss forthe period. For financial liabilities classified as other categories, relevant transaction costs are included in the amountinitially recognized.
2018年度财务报表附注
① Financial liabilities at fair value through profit or loss for the periodThe criteria for a financial liability to be classified as held for trading and designated as financial liabilities at fair valuethrough profit or loss are the same as those for a financial asset to be classified as held for trading and designated asfinancial assets at fair value through profit or loss.Financial liabilities at fair value through profit or loss for the period are subsequently measured at fair value. The gain orloss arising from changes in fair value and dividends and interest income related to such financial liabilities are included inprofit or loss for the period.② Other financial liabilitiesDerivative financial liabilities which are linked to equity instruments that are not quoted in an active market and the fairvalue of which cannot be measured reliably measured, and which shall be settled by delivery of equity instruments aresubsequently measured at cost. Other financial liabilities are subsequently measured at amortized cost using the effectiveinterest method. Gains or losses arising from derecognition or amortization is recognized in profit or loss for the period.③ Financial Guarantee Contracts and loan commitmentFinancial guarantee contracts other than those designated as financial liabilities at fair value through profit or loss or loancommitment other than those designated measured by fair value and with its variation for gains/losses reckoned as well asthe loans lower than the market rates are initially recognized at fair value, and shall be subsequently measured at the higherof the following: the amount determined in accordance with Accounting Standard for Business Enterprises No. 13“Contingencies” and the amount initially recognized less cumulative amortization recognized in accordance with theprinciples set out in “Accounting Standard for Business Enterprises No. 14- Revenue”.(6) Termination recognition of financial liabilitiesOnly is released the whole or part of the current duties, the termination of the liabilities or part of it is available. The Group(the creditor) signed the agreement with the debtor: the existing liabilities are replaced by the bearing of the new liabilities;and the contract terms are fundamentally different of the new liabilities and the existing ones; the termination of therecognition of the existing ones is available; and the recognition of new ones is available.As for the whole or partial termination of the recognition of the liabilities, the difference between the book value of the partof recognition termination and the consideration value paid (including the non-cash assets transferred out or the liabilitiesnewly beard) is reckoned into the current loss/gain.(7) Derivatives and embedded derivativesDerivative instruments are initially recognized at fair value on the date on which a derivative contract is entered into and aresubsequently measured at fair value. Any gains or losses arising from changes in fair value of derivatives are taken directlyto profit or loss for the period, except for derivative instruments that are designated as hedging instruments and which arehighly effective in hedging, gains or losses arising from changes in their fair value are taken to the profit or loss for theperiod in accordance with the hedge accounting requirement based on the nature of hedging relationships.For combined instruments contain embedded derivatives which are not designated as financial assets or financial liabilitiesat fair value through profit or loss, and the embedded derivative and the main contract does not have a material relation interms of risk and economic attributes, and when an individual instrument which is the same as the embedded derivative canbe defined as derivative, the embedded derivative shall be separated from the combined instrument and treated as anindividual derivative. If the embedded derivative cannot be separately measured at acquisition or subsequent balance sheetdate, the combined instrument shall be designated as financial assets or financial liabilities at fair value through profit orloss.(8) Balance-out between the financial assets and liabilities
2018年度财务报表附注
As the Group has the legal right to balance out the financial liabilities by the net or liquidation of the financial assets, thebalance-out sum between the financial assets and liabilities is listed in the balance sheet. In addition, the financial assets andliabilities are listed in the balance sheet without being balanced out.
(9) Equity instrument
The equity instrument is the contract to prove the holding of the surplus stock of the assets with the deduction of allliabilities in the Group. The Company issues (including refinancing), repurchases, sells or cancels equity instruments asmovement of equity. No fair value change of equity instrument would be recognized by the Company. Transaction feesrelating to equity transactions are deducted from equity.The Group’s all distribution (shares dividend excluded) to the holders of the stock instrument will decrease the shareholders’equity. The Group does not recognize the fair value change sum of the stock instrument.
10. Account receivableAccount receivable included account receivable and other account receivable.
(1)Recognition of bad debt provision
The Group reviews carrying value of account receivables on balance sheet date, and make impairment provision for accountreceivables which are proven to be impaired by the following objective evidences: ①debtor experiences material financialdifficulties; ②debtor is in breach of contract terms (for instance: default or expiration of payment for principal or interest);③debtor is likely to face bankruptcy or other financing restructuring; ④other objective evidence showing accountreceivables are impaired.
(2) Provision for Year-end balance of bad debt provisions①Recognition criteria and accrual method on accounts with major amount and withdrawal bad debt provision independently
The single account receivable above RMB 2 million is recognized as single substantive account receivable
The Company takes the independent impairment test on the single substantive account. As for the account receivablewithout the impairment in the test, it is included in the account receivable portfolio of the similar credit risk characters forthe impairment test. As for the account receivable with the recognition of impairment loss, it is not included in the accountreceivable portfolio of the similar credit risk characters for the impairment test
②Determination bases for account receivables for which bad debt provision is made according to category of credit risks,and provision for bad debt
The Group determines categories of account receivables according to the similarity of credit risk characteristics. Accountreceivables consist of those with insignificant single amount and those with significant single amount which is not impairedbased on separate impairment test. The Group is of the view that account receivables with insignificant single amount andthose with significant single amount which is not impaired based on separate impairment test are exposed to low credit risks,thus it is not necessary to make bad debt provision, unless there is evidence showing that account receivables have relativelysubstantial credit risks.
2018年度财务报表附注
③Account receivables with insignificant single amount for which bad debt provision is made separately
For account receivables with insignificant single amount, if there is evidence showing that account receivables are exposedto relatively substantial credit risks, bad debt provision shall be made for such account receivables under specificidentification method.
(3)Reversal of bad debt
If there is objective evidence showing recovery in value of account receivables impaired and which is related to any eventoccurring after such recognition, the impairment loss originally recognized shall be reversed to the extent that the carryingvalue of the account receivables upon reversal will not exceed the amortized cost as at the reversal date assuming there is noprovision for impairment.
11. Inventory
（1）Categories of inventory
Inventory consists of fuels and raw materials etc.（2）Valuation method of inventory delivered
The inventories are initially measured at cost.Cost of inventories comprises purchase costs, processingcosts and other costs incurred in bringing the inventories to their present location and condition.
The actual cost of inventories delivered is recognized by the weighted average method.
(3) Recognition of net realizable value of inventory, and accrual methods of preparation for depreciationOn the balance sheet day, the inventory is measured by the lower one between the cost and the netrealizable value. As the net realizable value is lower than the cost, the inventory depreciationprovision is accrued. The net realizable value is balance of the estimated sale price less the estimatedforthcoming cost upon the completion, the estimated sale expense, and the relevant tax in the dailyactivities. Upon the recognition of net realizable value of the inventory, the concrete evidence is basedon and the purpose of holding the inventory and the influence of events after the balance sheet day areconsidered.
As for the inventory of large sum and lower price, the inventory depreciation provision is accrued by the inventorycategories. As for the inventory related to the product series produced and sold in the same district, of the same or similarfinal use or purpose and impossible to be separated from the other items, the provision is consolidated and accrued. Theprovision for other inventory is accrued by the difference between the cost and net realizable value.Upon the accrual of the inventory depreciation provision, if the previous influence factors on the inventory deductiondisappeared, which resulted in the net realizable value being higher than its book value; the accrual is transferred backwithin the previous accrual of the provision and reckoned into the current gain/loss.(4) The inventory system is perpetual inventory system.
2018年度财务报表附注
12. Long-term equity investment
Long-term equity investments under this section refer to long-term equity investments in which the Company has control,joint control or significant influence over the investee. Long-term equity investment without control or joint control orsignificant influence of the Group is accounted for as available-for-sale financial assets or financial assets measured at fairvalue with any change in fair value charged to profit or loss. Details on its accounting policy please refer to 9. “Financialinstruments” under Note IV.Joint control is the Company’s contractually agreed sharing of control over an arrangement, which relevant activities of sucharrangement must be decided by unanimously agreement from parties who share control. Significant influence is the powerof the Company to participate in the financial and operating policy decisions of an investee, but to fail to control or jointcontrol the formulation of such policies together with other parties.(1) Determination of investment costFor a long-term equity investment acquired through a business combination involving enterprises under common control,the initial investment cost of the long-term equity investment shall be the absorbing party’s share of the carrying amount ofthe owner’s equity under the consolidated financial statements of the ultimate controlling party on the date of combination.The difference between the initial cost of the long-term equity investment and the cash paid, non-cash assets transferred aswell as the book value of the debts borne by the absorbing party shall offset against the capital reserve. If the capital reserveis insufficient to offset, the retained earnings shall be adjusted. If the consideration of the merger is satisfied by issue ofequity securities, the initial investment cost of the long-term equity investment shall be the absorbing party’s share of thecarrying amount of the owner’s equity under the consolidated financial statements of the ultimate controlling party on thedate of combination. With the total face value of the shares issued as share capital, the difference between the initial cost ofthe long-term equity investment and total face value of the shares issued shall be used to offset against the capital reserve. Ifthe capital reserve is insufficient to offset, the retained earnings shall be adjusted. For business combination resulted in anenterprise under common control by acquiring equity of the absorbing party under common control through a stage-upapproach with several transactions, these transactions will be judged whether they shall be treat as “transactions in a basket”.If they belong to “transactions in a basket”, these transactions will be accounted for a transaction in obtaining control. Ifthey are not belong to “transactions in a basket”, the initial investment cost of the long-term equity investment shall be theabsorbing party’s share of the carrying amount of the owner’s equity under the consolidated financial statements of theultimate controlling party on the date of combination. The difference between the initial cost of the long-term equityinvestment and the aggregate of the carrying amount of the long-term equity investment before merging and the carryingamount the additional consideration paid for further share acquisition on the date of combination shall offset against thecapital reserve. If the capital reserve is insufficient to offset, the retained earnings shall be adjusted. Other comprehensiveincome recognized as a result of the previously held equity investment accounted for using equity method on the date ofcombination or recognized for available-for-sale financial assets will not be accounted for.For a long-term equity investment acquired through a business combination involving enterprises not under common control,the initial investment cost of the long-term equity investment shall be the cost of combination on the date of acquisition.Cost of combination includes the aggregate fair value of assets paid by the acquirer, liabilities incurred or borne and equitysecurities issued. For business combination resulted in an enterprise not under common control by acquiring equity of theacquiree under common control through a stage-up approach with several transactions, these transactions will be judgedwhether they shall be treat as “transactions in a basket”. If they belong to “transactions in a basket”, these transactions willbe accounted for a transaction in obtaining control. If they are not belong to “transactions in a basket”, the initial investmentcost of the long-term equity investment accounted for using cost method shall be the aggregate of the carrying amount ofequity investment previously held by the acquiree and the additional investment cost. For previously held equity accountedfor using equity method, relevant other comprehensive income will not be accounted for. For previously held equity
2018年度财务报表附注
investment classified as available-for-sale financial asset, the difference between its fair value and carrying amount, as wellas the accumulated movement in fair value previously included in the other comprehensive income shall be transferred toprofit or loss for the current period.Agent fees incurred by the absorbing party or acquirer for the acquisition such as audit, legal service, and valuation andconsultation fees, and other related administration expenses are charged to profit or loss in the current period at the timesuch expenses incurred.The long-term equity investment acquired through means other than a business combination shall be initially measured at itscost. Such cost is depended upon the acquired means of long-term equity investments, which is recognized based on thepurchase cost actually paid by the Company in cash, the fair value of equity securities issued by the Group, the agreed valueof investment contract or agreement, the fair value or original carrying amounts of the non-monetary asset exchangetransaction which the asset will be transferred out of the Company, and the fair value of long-term equity investment itself.The costs, taxes and other necessary expenses that are directly attributable to the acquisition of the long-term equityinvestments are also included in the investment cost. For additional equity investment made in order to obtain significantinfluence or common control over investee without resulted in control, the relevant cost for long-term equity investmentshall be the aggregate of fair value of previously held equity investment and additional investment cost determinedaccording to “Accounting Standard for Business Enterprises No. 22 – Recognition and measurement of FinancialInstruments”.(2) Follow-up measurement and gain/loss recognitionAs for the long-term equity investment with common control (except for the common operators) over or significantinfluence on the invested units, measured by the cost method. In addition, long-term equity investment to the invested unitsthat control by the Company adopted the cost method for calculation in financial statement.① Long-term equity investment checked by the costUpon the cost check, the investment is valuated on the initial cost. In addition to the actual prices or the announced but yetundistributed cash dividend or profit in consideration valuation, the current investment return is recognized by theannounced cash dividend or profit by the invested units.② Long-term equity investment checked by the equityWhen equity basis is adopted, if the initial cost of the long-term equity investment is greater than the share of fair value ofthe receiver’s recognizable net asset, the initial investment cost of the long-term equity investment will not be adjusted; ifthe initial cost of the long-term equity investment is less than the share of fair value of the receiver’s recognizable net asset,the balance shall be counted into current income account, and the cost of long-term equity investment shall be adjusted.Under the equity method, investment gain and other comprehensive income shall be recognized based on the Group’s shareof the net profits or losses and other comprehensive income made by the investee, respectively. Meanwhile, the carryingamount of long-term equity investment shall be adjusted. The carrying amount of long-term equity investment shall bereduced based on the Group’s share of profit or cash dividend distributed by the investee. In respect of the other movementof net profit or loss, other comprehensive income and profit distribution of investee, the carrying value of long-term equityinvestment shall be adjusted and included in the capital reserves. The Group shall recognize its share of the investee’s netprofits or losses based on the fair values of the investee’s individual separately identifiable assets at the time of acquisition,after making appropriate adjustments thereto. In the event of inconformity between the accounting policies and accountingperiods of the investee and the Company, the financial statements of the investee shall be adjusted in conformity with theaccounting policies and accounting periods of the Company. Investment gain and other comprehensive income shall berecognized accordingly. In respect of the transactions between the Group and its associates and joint ventures in which theassets disposed of or sold are not classified as operation, the share of unrealized gain or loss arising from inter-grouptransactions shall be eliminated by the portion attributable to the Company. Investment gain shall be recognized accordingly.
2018年度财务报表附注
However, any unrealized loss arising from inter-group transactions between the Group and an investee is not eliminated tothe extent that the loss is impairment loss of the transferred assets. In the event that the Group disposed of an asset classifiedas operation to its joint ventures or associates, which resulted in acquisition of long-term equity investment by the investorwithout obtaining control, the initial investment cost of additional long-term equity investment shall be the fair value ofdisposed operation. The difference between initial investment cost and the carrying value of disposed operation will be fullyincluded in profit or loss for the current period. In the event that the Group sold an asset classified as operation to itsassociates or joint ventures, the difference between the carrying value of consideration received and operation shall be fullyincluded in profit or loss for the current period. In the event that the Company acquired an asset which formed an operationfrom its associates or joint ventures, relevant transaction shall be accounted for in accordance with “Accounting Standardsfor Business Enterprises No. 20 “Business combination”. All profit or loss related to the transaction shall be accounted for.Recognition of the share of net loss by the investment receiver shall be limited to when the book value of long-term equityinvestment and other long-term equity forms substantial net investment has been reduced to zero. Beside, if the Company isresponsible for other losses of the investment receiver, predicted liability shall be recognized upon the prediction ofresponsibilities and recorded into current investment loss account. If the receiver realized net profit in the period thereafter,the share of gains is recovered after making up of share of losses which has not been recognized.For long equity investment in associate and joint venture held by the Company prior to first implementation of the newaccounting principles on 1 January 2007, equity investment debtor difference relating to the investment (if any) shall beamortized and included in current gains and losses against the remaining period under straight line method.③ Acquisition of minority equityWhen preparing consolidated financial statements, the difference between the increase in long-term equity investment due toacquisition of minority interest of a subsidiary and the share of net asset of the subsidiary since the acquisition date (orcombination date) calculated under the new ownership ratio shall be adjusted to the capital surplus, when capital surplus isinsufficient, the excess shall be adjusted to retained profits.④ Disposal of long-term equity investmentIn these consolidated financial statements, where the parent company disposes part of its subsidiary without loss of control,the difference between the consideration received and the share of net asset for the disposed portion of long-term equityinvestment shall be recognized in shareholders’ equity; where the parent company disposes part of its subsidiary with loss ofcontrol, the accounting treatment should be in accordance with the accounting policies stated at Note IV 5 (2) “Preparationof consolidated financial statements”.For disposal of long-term equity investment in other situations, the difference between the considerations received and thecarrying amount of the disposed investment shall be recognized in profit or loss.In respect of long-term equity investment at equity with the remaining equity interest after disposal also accounted for usingequity method, other comprehensive income previously under owners’ equity shall be accounted for in accordance with thesame accounting treatment for direct disposal of relevant asset or liability by investee on pro rata basis at the time ofdisposal. The owners’ equity recognized for the movement of other owners’ equity (excluding net profit or loss, othercomprehensive income and profit distribution of investee) shall be transferred to profit or loss for the current period on prorata basis.In respect of long-term equity investment at cost with the remaining equity interest after disposal is also accounted for atcost, other comprehensive income recognized due to measurement at equity or recognition and measurement for financialinstruments prior to obtaining control over investee shall be accounted for in accordance with the same accounting treatmentfor direct disposal of relevant asset or liability by investee and carried forward to current gains and losses on pro rata basis.The movement of other owners’ equity (excluding net profit or loss, other comprehensive income and profit distribution ofinvestee) shall be transferred to profit or loss for the current period on pro rata basis.
2018年度财务报表附注
In the event of loss of control over investee due to partial disposal of equity investment by the Group, in preparing separatefinancial statements, the remaining equity interest which can apply common control or impose significant influence over theinvestee after disposal shall be accounted for using equity method. Such remaining equity interest shall be treated asaccounting for using equity method since it is obtained and adjustment was made accordingly. For remaining equity interestwhich cannot apply common control or impose significant influence over the investee after disposal, it shall be accountedfor using the recognition and measurement standard of financial instruments. The difference between its fair value andcarrying amount as at the date of losing control shall be included in profit or loss for the current period. In respect of othercomprehensive income recognized using equity method or the recognition and measurement standard of financialinstruments before the Group obtained control over the investee, it shall be accounted for in accordance with the sameaccounting treatment for direct disposal of relevant asset or liability by investee at the time when the control over investee islost. Movement of other owners’ equity (excluding net profit or loss, other comprehensive income and profit distributionunder net asset of investee accounted for and recognized using equity method) shall be transferred to profit or loss for thecurrent period at the time when the control over investee is lost. Of which, for the remaining equity interest after disposalaccounted for using equity method, other comprehensive income and other owners’ equity shall be transferred on pro ratabasis. For the remaining equity interest after disposal accounted for using the recognition and measurement standard offinancial instruments, other comprehensive income and other owners’ equity shall be fully transferred.In the event of loss of common control or significant influence over investee due to partial disposal of equity investment bythe Group, the remaining equity interest after disposal shall be accounted for using the recognition and measurementstandard of financial instruments. The difference between its fair value and carrying amount as at the date of losing commoncontrol or significant influence shall be included in profit or loss for the current period. In respect of other comprehensiveincome recognized under previous equity investment using equity method, it shall be accounted for in accordance with thesame accounting treatment for direct disposal of relevant asset or liability by investee at the time when equity method wasceased to be used. Movement of other owners’ equity (excluding net profit or loss, other comprehensive income and profitdistribution under net asset of investee accounted for and recognized using equity method) shall be transferred to profit orloss for the current period at the time when equity method was ceased to be used.The Group disposes its equity investment in subsidiary by a stage-up approach with several transactions until the controlover the subsidiary is lost. If the said transactions belong to “transactions in a basket”, each transaction shall be accountedfor as a single transaction of disposing equity investment of subsidiary and loss of control. The difference between thedisposal consideration for each transaction and the carrying amount of the corresponding long-term equity investment ofdisposed equity interest before loss of control shall initially recognized as other comprehensive income, and subsequentlytransferred to profit or loss arising from loss of control for the current period upon loss of control.
13. Investment real estate
Investment real estate is defined as the real estate with the purpose to earn rent or capital appreciation or both, including therented land use rights and the land use rights which are held and prepared for transfer after appreciation, the rented buildings.Besides, vacant buildings held by the Company for operating or lease purposes would be also stated as investment propertyprovided that board of directors (or similar authority) pass written resolution which definitely expresses that the buildingswill be held for operating or lease purposes and the intention for holding will not change shortly.Investment real estate is measured according to the initial cost. The follow-up expenses that are related to investment realestate, if the economic interests related to the assets are is likely to inflow cost and its costs can be reliably measured, shallbe included in the cost of investment real estate. The other follow-up expense shall be included in the current gains/losses.
2018年度财务报表附注
The Company adopts the cost model to have follow-up measurements of the investment real estate, and to conductdepreciation or amortization according to the policies that are in consistent with the land use rights.
Impairment test method and impairment provision method in relation to investment property is detailed in note IV.20 “Longterm assets impairment”.Where property for own use or inventory transfers to investment property, or investment property transfers to property forown use, carrying value before such transfer shall be taken as book value after such transfer.
In the event that an investment property is converted to an owner-occupied property, such property shall become fixed assetsor intangible assets since the date of its conversion. In the event that an owner-occupied property is converted to real estateheld to earn rentals or for capital appreciation, such fixed assets or intangible assets shall become an investment propertysince the date of its conversion. Upon the conversion, investment property which is measured at cost is accounted for withthe carrying value prior to conversion, and investment property which is measured at fair value is accounted for with the fairvalue as of the conversion date.
If an investment property is disposed of or if it withdraws permanently from use and no economic benefit will be obtainedfrom the disposal, the recognition of it as an investment property shall be terminated. When an investment property is sold,transferred, retired or damaged, the amount of proceeds on disposal of the property net of the carrying amount and relatedtax and surcharges is recognized in profit or loss for the current period.
14. Fixed assets(1) Recognition conditions for the fixed assetsFixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing services, lease orfor operation & management, and have more than one fiscal year of service life. The fixed assets recognized on thecondition of economy benefit probably in-flow into the Company and the cost should measured reliably only. Initialmeasurement shall be conducted on fixed assets according to the actual cost when obtain them and also considering theexpected costs for disposal.
(2) Depreciation of various fixed assetsFrom the next month since reaching the intended use state, depreciations on fixed assets shall be accounted by using themethod of average life length except the steam turbine generating unit that accounted by withdrawal the working volumemethod.
Life expectancy, expected net impairment value and annual depreciation rate of all assets are as follows:
| Category | Life expectancy | Salvage value rate | Annual depreciation rate |
| Houses and buildings | 20-year | 10% | 4.5% |
| Equipment (fuel machinery group excluded) | 15-20-year | 10% | 4.5%-6% |
| Equipment-fuel machinery group (note) | 10% | The work quantity method |
2018年度财务报表附注
Category
| Category | Life expectancy | Salvage value rate | Annual depreciation rate |
| Transportation tools | 5-year | 10% | 18% |
| Other equipment | 5-year | 10% | 18% |
| Name of the Company | Fixed assets | Depreciation amount (RMB/Hour) |
| The Company | Generating unit 1# | 391.26 |
| Generating unit 3# | 397.15 | |
| Generating unit 7# | 4,214.73 | |
| Shenzhen New Power Industrial Co., Ltd(“New Power Company”) | Generating unit 10# | 2,134.37 |
| Shen Nan Dian (Zhongshan) Power Co., Ltd.(“Zhongshan Power”) | Generating unit 1# | 4,246.00 |
| Generating unit 3# | 4,160.83 | |
| Shen Nan Dian (Dongguan) Weimei Power Co., Ltd.(“Weimei Power ”) | Generating unit 1# | 4,490.64 |
| Generating unit 3# | 4,217.56 |
2018年度财务报表附注
economy benefits arising from disposal. Income from treatment of fixed asset disposing, transferring, discarding or damage,the balance after deducting of book value and relative taxes is recorded into current income account.
The Company re-reviews useful life, expected net residual value and depreciation method of fixed assets at least at each yearend. Any change thereof would be recorded as change of accounting estimates.15. Construction-in-progressCost of construction in process is determined at practical construction expenditures, including all expenses during theconstruction, capitalized loan expenses before the construction reaches useful status, and other relative expenses. It istransferred to fixed asset as soon as the construction reaches the useful status.Impairment testing method and accrual method for impairment reserves found in Note IV-19”Impairment of long-termassets”16. Borrowing expensesBorrowing expenses include interest, amortization of discounts or premiums related to borrowings, ancillary costs incurredin connection with the arrangement of borrowings, and exchange differences arising from foreign currency borrowings.Borrowing expenses that can be directly attributed for purchasing or construction of assets that are complying withcapitalizing conditions start to be capitalized when the payment of asset and borrowing expenses have already occurred, andthe purchasing or production activities in purpose of make the asset usable have started; Capitalizing will be terminated assoon as the asset that complying with capitalizing conditions has reached its usable or saleable status. The other borrowingexpenses are recognized as expenses when occurred.
Interest expenses practically occurred at the current term of a special borrowing are capitalized after deducting of the banksaving interest of unused borrowed fund or provisional investment gains; Capitalization amounts of common borrowings aredecided by the weighted average of exceeding part of accumulated asset expenses over the special borrowing assets multiplythe capitalizing rate of common borrowings adopted. Capitalization rates are decided by the weighted average of commonborrowings.
During the capitalization period, exchange differences on a specific purpose borrowing denominated in foreign currencyshall be capitalized. Exchange differences related to general-purpose borrowings denominated in foreign currency shall beincluded in profit or loss for the current period.
Qualifying assets are assets (fixed assets, investment property, inventories, etc.) that necessarily take a substantial period oftime for acquisition, construction or production to get ready for their intended use or sale.
Capitalization of borrowing costs shall be suspended during periods in which the acquisition, construction or production of aqualifying asset is interrupted abnormally, when the interruption is for a continuous period of more than 3 months, until theacquisition, construction or production of the qualifying asset is resumed.17. Intangible assets
(1) Intangible assets
An intangible asset is an identifiable non-monetary asset without physical substance owned or controlled by the Company.
An intangible asset shall be initially measured at cost. The expenditures incurred on an intangible asset shall be recognizedas cost of the intangible asset only if it is probable that economic benefits associated with the asset will flow to the Company
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and the cost of the asset can be measured reliably. Other expenditures on an item asset shall be charged to profit or losswhen incurred.
Land use right acquired shall normally be recognized as an intangible asset. Self-constructed buildings (e.g. plants), relatedland use right and the buildings shall be separately accounted for as an intangible asset and fixed asset. For buildings andstructures purchased, the purchase consideration shall be allocated among the land use right and the buildings on areasonable basis. In case there is difficulty in making a reasonable allocation, the consideration shall be recognized in full asfixed assets.
An intangible asset with a finite useful life shall be stated at cost less estimated net residual value and any accumulatedimpairment loss provision and amortized using the straight-line method over its useful life when the asset is available for use.Intangible assets with indefinite life are not amortized.
The Group shall review the useful life of intangible asset with a finite useful life and the amortization method applied atleast at each financial year-end. A change in the useful life or amortization method used shall be accounted for as a changein accounting estimate. For an intangible asset with an indefinite useful life, the Group shall review the useful life of theasset in each accounting period. If there is evidence indicating that the useful life of that intangible asset is finite, theCompany shall estimate the useful life of that asset and apply the accounting policies accordingly.
(2) Impairment test method of intangible assets & calculation method of depreciation reserveFound more in Note IV-19”Impairment of long-term assets”18. Long-term expenses to be amortizedLong-term amortizable expenses are those already occurred and amortizable to the current term and successive terms forover one year. Long-term amortizable expenses are amortized by straight-line method to the benefit period.19. Impairment of long-term assetsThe Group will judge if there is any indication of impairment as at the balance sheet date in respect of non-currentnon-financial assets such as fixed assets, construction in progress, intangible assets with an infinite useful life, investmentproperties measured at cost, and long-term equity investments in subsidiaries, joint ventures and associates. If there is anyevidence indicating that an asset may be impaired, recoverable amount shall be estimated for impairment test. Goodwill,intangible assets with an indefinite useful life and intangible assets beyond working conditions will be tested for impairmentannually, regardless of whether there is any indication of impairment.
If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount, the impairmentprovision will be made according to the difference and recognized as an impairment loss. The recoverable amount of anasset is the higher of its fair value less costs of disposal and the present value of the future cash flows expected to be derivedfrom the asset. An asset’s fair value is the price in a sale agreement in an arm’s length transaction. If there is no saleagreement but the asset is traded in an active market, fair value shall be determined based on the bid price. If there is neithersale agreement nor active market for an asset, fair value shall be based on the best available information. Costs of disposalare expenses attributable to disposal of the asset, including legal fee, relevant tax and surcharges, transportation fee anddirect expenses incurred to prepare the asset for its intended sale. The present value of the future cash flows expected to bederived from the asset over the course of continued use and final disposal is determined as the amount discounted using anappropriately selected discount rate. Provisions for assets impairment shall be made and recognized for the individual asset.If it is not possible to estimate the recoverable amount of the individual asset, the Group shall determine the recoverable
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amount of the asset group to which the asset belongs. The asset group is the smallest group of assets capable of generatingcash flows independently.
For the purpose of impairment testing, the carrying amount of goodwill presented separately in the financial statements shallbe allocated to the asset groups or group of assets benefiting from synergy of business combination. If the recoverableamount is less than the carrying amount, the Group shall recognize an impairment loss. The amount of impairment loss shallfirst reduce the carrying amount of any goodwill allocated to the asset group or set of asset groups, and then reduce thecarrying amount of other assets (other than goodwill) within the asset group or set of asset groups, pro rata on the basis ofthe carrying amount of each asset.Once an impairment loss of these assets is recognized, it is not allowed to be reversed even if the value can be recovered insubsequent period.20. Staff remuneration
Staff remuneration includes short term staff remuneration, post office benefit, dismissal benefit and otherlong term staff benefits, among which:
Short term staff remuneration mainly consists of salary, bonus, allowance and subsidy, staff benefits,medical insurance, maternity insurance, work related injury insurance, housing funds, labor unit fee andeducation fee, non-monetary benefits, etc. short term staff remuneration actually happened during theaccounting period in which staff provides services to the Company is recognized as liability, and shall beincluded in current gains and losses or relevant asset cost. Non-monetary benefits are measured at fairvalue.
Post office benefits mainly consist of defined withdraw plan and defined benefit plan. Defined withdrawplan mainly includes basic pension insurance, unemployment insurance and annuity, and the contributionpayable is included in relevant asset cost or current gains and losses when occurs.
When the Company terminates the employment relationship with employees before the end of the employment contracts orprovides compensation as an offer to encourage employees to accept voluntary redundancy, the Company shall recognizeemployee compensation liabilities arising from compensation for staff dismissal and included in profit or loss for the currentperiod, when the Company cannot revoke unilaterally compensation for dismissal due to the cancellation of laborrelationship plans and employee redundant proposals; and the Company recognize cost and expenses related to payment ofcompensation for dismissal and restructuring, whichever is earlier. However, if the compensation for termination ofemployment is not expected to be fully paid within 12 months from the reporting period, it shall be accounted for otherlong-term staff remuneration.
The early retirement plan shall be accounted for in accordance with the accounting principles for compensation fortermination of employment. The salaries or wages and the social contributions to be paid for the employees who retirebefore schedule from the date on which the employees stop rendering services to the scheduled retirement date, shall berecognized (as compensation for termination of employment) in the current profit or loss by the Group if the recognitionprinciples for provisions are satisfied.
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For other long-term employee benefits provided by the Company to its employees, if satisfy with the established withdrawplan, then the benefits are accounted for under the established withdraw plan, otherwise accounted for under defined benefitscheme.21. Accrual liabilityWhen responsibilities connected to contingent issues meet the follow conditions at the same time, than recognized asaccrued liability: (1) the liability is the current liability that undertaken by the Company; (2) the liability has the probabilityof result in financial benefit outflow; and (3) the responsibility can be measured reliably for its value.
At balance sheet day, with reference to the risks, uncertainty and periodic value of currency that connected to the contingentissues, the predicted liabilities are measured according to the best estimation on the payment to fulfill the currentresponsibility.
If the expenses for clearing of predictive liability is fully or partially compensated by a third party, and the compensatedamount can be definitely received, it is recognized separated as asset. The compensated amount shall not be greater than thebook value of the predictive liability.
(1) Contact in loss
Contact in loss is identified when the inevitable cost for performance of the contractual obligation exceeds the inflow ofexpected economic benefits. When a contract in loss is identified and the obligations there under are qualified by theaforesaid recognition criterion for contingent liability, the difference of estimated loss under contract over the recognizedimpairment loss (if any) of the subject matter of the contract is recognized as contingent liability.
(2) Restructuring obligationsFor detailed, official and publicly announced restructuring plan, the direct expenses attributable to the restructuring arerecognized as contingent liabilities, provided that the aforesaid recognition criterion for contingent liability is met. Forrestructuring obligations arising from disposal of part business, the Company will recognize the obligations relating torestructuring only when it undertakes to dispose part business (namely entering into finalized disposal agreement).22. RevenueWhen significant risks and rewards of ownership of goods have been transferred to buyer, no continuous management rightregularly related to ownership is retained, no effective control is conducted on goods sold, moreover, amount of income maybe measured in a reliable way, relevant economic profit may have flown into enterprise and relevant incurred cost or to beincurred may be measured in a reliable way, implementation of goods sales revenue will be confirmed. Detail recognizationaccording to specific revenue:
(1) Power sales revenue
The Group generates electricity by thermal power, and realizes sales through incorporation into Guangdong power grid. Asfor power sales, the Group realizes revenue when it produces electricity and obtains the grid power statistics table confirmedby the power bureau.(2) Revenue from providing labor serviceUnder the condition of service providing business can be estimated in a reliable way, relevant economic benefit is likely toflow into enterprise, completion degree of business may be estimated in a reliable way and relevant incurred cost and to beincurred may be measured in a reliable way, the revenue from labor service providing recognized. Relevant service revenue
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may be confirmed by the Company as percentage-of-completion method on balance sheet date. Completion degree ofservice business will be determined as share of incurred service cost in estimated general cost.If result of service providing business can’t be estimated in a reliable way, service revenue should be confirmed as amountof incurred service cost expected to be compensated, where incurred service cost is taken as period charge. If nocompensation is expected for incurred service cost, income won’t be confirmed.(1) Specific criteria for revenue recognition of environmental protection companiesAt the end of each month, the company confirms the monthly income based on the initially confirmed sludge transportationvolume and sludge treatment price, and revises the revenue confirmed last month after checking with the relevant units inthe next month, and the correction proportion is relatively small.(2) Specific standards for revenue recognition of engineering companies① Debugging projects: When the debugging is successful, obtain the confirmation of successful debugging, and confirmthe income according to the contract;② Operation and maintenance and management projects: Temporarily estimate and confirm the income every monthaccording to the attendance time and labor service price of attendance staff, and adjust the temporarily estimated incomeafter obtaining the monthly settlement statement sealed and signed by suppliers, the confirmation of progress, and theattendance form.23. Government subsidyGovernment subsidy refers to the monetary asset and non-monetary asset that the Company obtains from the governmentfree of charge, excluding the capital that the government invests as an investor and enjoys the corresponding owner's equity.Government subsidies are divided into the asset-related government subsidy and the income-related government subsidy.If the government subsidy is a monetary asset, it shall be measured according to the received or receivable amount. If thegovernment subsidy is a non-monetary asset, it shall be measured at fair value. If the fair value cannot be obtained reliably,it shall be measured according to the nominal amount. Government subsidy measured by nominal amount is directlyincluded in the current profits and losses.The government subsidy related to the assets is recognized as deferred income and is recorded into the current profits andlosses or the book value of the relevant assets in a reasonable and systematic manner within the useful life of the relevantassets. Revenue-related government grants are used to compensate for the related costs or losses incurred during thesubsequent period and are recognized as deferred income and are recognized in the current profit or loss or related expensesduring the period of recognition of the relevant cost expense or loss; Incurred costs or losses incurred, directly included inthe current profits and losses or offset the relevant costs.For the government subsidy containing both asset-related parts and income-related parts at the same time, distinguish thedifferent parts and make the accounting treatment, classify the parts which are difficult to be distinguished as theincome-related government subsidy.The government subsidy related to the Company’s daily activities is included in other incomes or offsets related costs inaccordance with the essence of economic business; while the government subsidy unrelated to the Company’s dailyactivities is included in non-operating income and expenditure.When the recognized government subsidy needs to be refunded or has balance of related deferred income, offset the bookbalance of related deferred income, and include the excess parts in the current profits and losses or (the asset-relatedgovernment subsidy for offsetting the book value of underlying assets in initial recognition) adjust the book value of assets;directly include these belong to other situations in the current profits and losses.
24. Deferred income tax asset/ deferred income tax liability
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(1) Current income tax
On balance sheet date, current income tax liability (or asset) formed during and before current period will be measured asamount of income tax payable (or repayable) as specified by tax law. Assessable income on which current income expense isbased represents the profit before tax for the year upon adjustment against relevant tax rules.(2) Deferred income tax asset & deferred income tax liabilityFor balance of book value of some asset/liability item and its tax base, or temporary difference derived from balance of bookvalue and tax base of the item, which is not confirmed as asset or liability but tax base can be fixed as specified by tax law,deferred income tax asset & deferred income tax liability will be confirmed in balance sheet liability approach.Deferred income tax liabilities are not recognized for taxable temporary differences related to: the initial recognition ofgoodwill; and the initial recognition of an asset or liability in a transaction which is neither a business combination noraffects accounting profit or taxable profit (or deductible loss) at the time of the transaction. In addition, the Grouprecognizes the corresponding deferred income tax liability for taxable temporary differences associated with investments insubsidiaries, associates and joint ventures, except when both of the following conditions are satisfied: the Company able tocontrol the timing of the reversal of the temporary difference; and it is probable that the temporary difference will notreverse in the foreseeable future.Deferred income tax assets are not recognized for deductible temporary differences related to the initial recognition of anasset or liability in a transaction which is neither a business combination nor affects accounting profit or taxable profit (ordeductible loss) at the time of the transaction. In addition, the Group recognizes the corresponding deferred income tax assetfor deductible temporary differences associated with investments in subsidiaries, associates and joint ventures to the extentthat it is probable that taxable profits will be available against which the deductible temporary differences can be utilized,except when both of the following conditions are satisfied: it is not probable that the temporary difference will reverse in theforeseeable future; and it is not probable that taxable profits will be available in the future, against which the temporarydifference can be utilized.For deductible loss and taxation decrease which can be carried over to following fiscal year, relevant deferred income taxasset may be confirmed subject to amount of taxable income which is likely to be acquired to deduct deductible loss andtaxation decrease in the future.On balance sheet day, those deferred income tax assets and income tax liabilities, according to the tax law, calculation willbe on tax rate applicable to retrieving period of assets or clearing of liabilities.On balance sheet day, verification will be performed on the book value of differed income tax assets. If it is not possible toobtain enough taxable income to neutralize the benefit of differed income tax assets, then the book value of the differedincome tax assets shall be reduced. Whenever obtaining of taxable income became possible, the reduced amount shall berestored.
(3) Income tax expenses
Income tax expense includes current income tax and deferred income tax.Current deferred income tax and deferred income tax expenses or income shall reckoned into current gains/losses other thatthose current income tax and deferred income tax with transactions and events concerned, that reckoned into shareholder’sequity directly while recognized as other comprehensive income; and the book value of the goodwill adjusted for deferredincome tax arising from enterprise combination.
(4) Offset of income tax
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to realize the assets andsettle the liabilities simultaneously, current tax assets and current tax liabilities are offset and presented on a net basis.When the Group has a legal right to settle current tax assets and liabilities on a net basis, and deferred tax assets and deferredtax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different
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taxable entities which intend either to settle current tax assets and liabilities on a net basis or to realize the assets andliabilities simultaneously, in each future period in which significant amounts of deferred tax assets or liabilities are expectedto be reversed, deferred tax assets and deferred tax liabilities are offset and presented on a net basis.25. LeasingFinance lease is to virtually transfer all risks and rewards related to ownership of asset, the ownership is may transferultimately or not. Leases other than finance lease are operating leases.
(1) Lease business with the Company as the renteeThe rental is reckoned into the relevant assets cost or the current loss/gain in the straight-line method. The initial directexpenses are reckoned into the current gain/loss, or the actual rental into the current loss/gain.
(2) Lease business with the Company as the renterThe rental is reckoned into the relevant assets cost or the current loss/gain in the linear way. The initial direct substantiveexpenses are capitalized and reckoned into the current gain/loss, or the actual rental into the current loss/gain. The initialdirect small expenses are reckoned into the current actual gain/loss, or the actual rental into the current loss/gain.
(3) Financing lease business with the Group recorded as lesseeOn the beginning date of the lease, the entry value of leased asset shall be at the lower of the fair value of the leased assetand the present value of minimum lease payment at the beginning date of the lease. Minimum lease payment shall be theentry value of long-term accounts payable, with difference recognized as unrecognized financing expenses. In addition,initial direct costs attributable to leased items incurred during the process of lease negotiation and signing of leaseagreement shall be included in the value of leased assets. The balance of minimum lease payment after deductingunrecognized financing expenses shall be accounted for long-term liability and long-term liability due within one year.
Unrecognized financing expenses shall be recognized as financing expenses for the current period using effective interestmethod during the leasing period. Contingent rent shall be included in profit or loss for the current period at the time itincurred.
(4) Financing lease business with the Group recorded as lessorOn the beginning date of the lease, the entry value of lease receivable shall be the aggregate of minimum lease receivableand initial direct costs at the beginning date of the lease. The unsecured balance shall be recorded. The aggregate ofminimum lease receivable, initial direct costs and unsecured balance and the different between their present value shall berecognized as unrealized financing income. The balance of lease receivable after deducting unrecognized financing incomeshall be accounted for long-term debt and long-term debt due within one year.
Unrecognized financing income shall be recognized as financing income for the current period using effective interestmethod during the leasing period. Contingent rent shall be included in profit or loss for the current period
26. Other main accounting policies and estimations
The discontinued operation refers to the component that meets one of following conditions and has been disposed by theCompany or classified as held-for-sale and can be individually distinguished when operating and preparing the financial
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statements: ① the component represents an independent main Business or a major operating area; ② the component is aparts that intends to dispose or arrange an independent main business or a major operating area; ③ the component is asubsidiary obtained only for re-sale.27. Changes of main accounting policy and accounting estimation（(1)Change of accounting policiesChange of accounting policies arising from adoption of new Business Accounting Standards and amendment on other lawsand regulationsImplement the Notice of the Ministry of Finance on Revising and Printing the Format of Financial Statements for GeneralEnterprises in 2018. The Ministry of Finance issued the Notice of the Ministry of Finance on Revising and Printing theFormat of Financial Statements for General Enterprises in 2018 (CK No.[2018]15, hereinafter referred to as “the newlyrevised financial statement format” ) on June 15, 2018. The newly revised financial statement format mainly consolidatesand presents some items in the balance sheet, and separately lists the R&D expenses in the original “administrative expenses”in the income statement, and adds “R&D expenses” items to reflect the expenditure incurred during the research anddevelopment of enterprise.In accordance with the Accounting Standards for Business Enterprises No. 30 - Presentation of Financial Statements andother relevant regulations, the Company adopted the retrospective adjustment method for this accounting policy change, andthe comparative financial statements of 2018 & 2017 have been re-stated. There is no impact on the 2017 annualconsolidated financial statements or on the profit and loss items related to the parent company’s financial statements.(2) Change of accounting estimationThere was no change of accounting estimation in the reporting period.28. Major accounting judgment and estimationWhen using the accounting policies discussed in note IV, the Group needs to made judgment, estimation and assumption forcarrying value of certain items which cannot be measured adequately due to inherent uncertainty of economic activities.Such judgment, estimation and assumption are based on historical experiences of the Group’s management, together withconsideration of other relevant factors. These judgments, estimations and assumption would affect the reported amount ofincome, expense, asset and liability and disclosure of contingent liabilities on balance sheet date. However, actual resultsresulting from the uncertainty of these estimates may differ from the current estimation made by management of theCompany, which would in turn lead to material adjustments to the carrying value of assets or liabilities which will beaffected in future.The Group conducts regular re-review on the aforesaid judgment, estimation and assumption on a continued operation basis.If the change of accounting estimation only affect current period, the affected amount is recognized in the period whenchange occurs. If the change affects current and future periods both, the affected amount is recognized in the period whenchange occurs and future periods.On balance sheet date, major aspects in the statement need to judge, estimate and consumption by the Company are as:
(1) Fixed assets are provided for depreciation by output methodThe Group recognizes depreciation for unit electricity based on values of power generation machine sets, projected powersales volume and projected net remaining value, and provides for depreciation according to depreciation of unit electricityand actual power sales volume. Taking into account the prevailing industry policies, technologies, consumption, allocationmethod of power management authorities and past experiences, and the Group management believes that it is adequate forutilization life of such power generation machine sets, projected power sales volume, projected net remaining value andprovision method for depreciation. If the future actual power sales volume differs substantially from the projected one, theGroup would make adjustment to unit electricity depreciation, which would bring affects to the depreciation expensesincluded in profit and loss for the current and future periods.
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（2）Provision for bad debts
The Group use allowance method to state bad debt losses according to the accounting policies of accounts receivable.Impairment of receivables is based on the assessment of the collectibility of accounts receivable. Identification ofimpairment of receivables requires management judgments and estimates. The differences between actual results and theoriginal estimate will affect the book value of accounts receivable as well as the recognition or reversal of provision for baddebts in the period in which the estimate is changed.
（3）Allowance for inventoriesUnder the accounting policies of inventories and by measuring at the lower of cost and net realizable value, the Groupmakes allowance for inventories that have costs higher than net realizable value or become obsolete and slow moving.Write-down of inventories to their net realizable values is based on the salability of the evaluated inventory and their netrealizable values. Identification of inventories requires management to make judgments and estimates on the basis ofobtaining conclusive evidence, and considering the purpose of holding inventory and the events after balance sheet date. Thedifferences between actual results and the original estimate will affect the book value of inventories as well as therecognition or reversal of provision for inventories in the period in which the estimate is changed.（4）Impairment provision for long-term assetsThe Company makes judgment on each balance sheet date on whether there is indication of impairment in respect ofnon-current assets other than financial assets. Intangible assets with indefinite useful life shall also be further tested forimpairment when there is indication of impairment, in addition to the annual impairment test. Other non-current assets otherthan financial assets would be test for impairment when there is indication showing its carrying value in not likely to berecovered.Impairment exists when carrying value of asset or assets group is higher than recoverable amount, namely the higher of fairvalue less disposal cost and present value of expected future cash flow.The calculation of the fair value less costs of disposal is based on available data from binding sales transactions in an arm’slength transaction of similar assets or observable market prices less incremental costs for disposing of the asset.In assessing value in use, significant judgments are exercised over the asset’s production, selling price, related operatingexpenses and discount rate to calculate the present value. All relevant materials which can be obtained are used forestimation of the recoverable amount, including the estimation of the production, selling price and related operatingexpenses based on reasonable and supportable assumptions.The Group determines whether goodwill is impaired at least on an annual basis. This requires an estimation of the value inuse of the cash-generating units to which the goodwill is allocated. Estimating the value in use requires the Group to makean estimate of the expected future cash flows from the cash-generating units and also to choose a suitable discount rate inorder to calculate the present value of those cash flows.（5）Depreciation and amortizationAssets such as investment real estate and intangible assets are depreciated and amortized over their useful lives understraight line method after taking into account residual value. The estimated useful lives of the assets are regularly reviewedto determine the depreciation and amortization costs charged in each reporting period. The useful lives of the assets aredetermined based on historical experience of similar assets and the estimated technical changes. If there have beensignificant changes in the factors used to determine the depreciation or amortization, the rate of depreciation or amortizationis revised prospectively.
（6）Deferred income tax assets
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Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable profit will beavailable against which the losses can be utilized. Significant management judgment is required to determine the amount ofdeferred income tax assets that can be recognized, based upon the likely timing and level of future taxable profits togetherwith future tax planning strategies.
（7）Accrual liability
Provision for product quality guarantee, estimated onerous contracts, and delay delivery penalties shall be recognized interms of contract, current knowledge and historical experience. If the contingent event has formed a practical obligationwhich probably results in outflow of economic benefits from the Group, a projected liability shall be recognized on the basisof the best estimate of the expenditures to settle relevant practical obligation. Recognition and measurement of the accrualliability significantly rely on the management’s judgments inconsideration of the assessment of relevant risks, uncertainties,time value of money and other factors related to the contingent events.In addition, the Company would accrual liability for after-sale quality maintenance commitment provided to customers inrespect of goods sold, maintained and reconstructed by the Company. Recent maintenance experience of the Company hasbeen considered when projecting liabilities, while the recent maintenance experience may not reflect the future maintenance.Any increase or decrease of this provision may affect profit or loss for future years.
V. Taxes
1. Main taxation and rates
| Taxation items | Tax rate |
| VAT | Output tax calculated based on the 6%, 10%, 11%, 13%, 16% or 17% of the taxable income, VAT based on the difference after deducted the current input tax |
| City maintenance tax | Taxed by 5% and 7% of the turnover tax actually paid |
| Education surtax | Taxed by 3% of the turnover tax actually paid |
| Local education surtax | Taxed by 2% of the turnover tax actually paid |
| Enterprise income tax | Taxed by 16.5% to 25% of the taxable income amount |
| Real estate tax | As for the taxed by residual value, paid with the 1.2% of the residual value after original value deducted 30%; as for the taxed by house rental, taxed with 12% of the rental income |
| Land-use tax of town | 2 Yuan ~ 8Yuan per square meter of the actual occupied are for the industrial land located in Nanshan District, Shenzhen City; 1Yuan ~ 5 Yuan per square meter of the actual occupied are for the industrial land located in Dongguan City; 1Yuan per square meter of the actual occupied are for the industrial land |
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Taxation items
| Taxation items | Tax rate |
| located in Zhongshan City | |
| Land VAT | Tax by the Value-added amount from transferring state-owned land use right, landing construction and its affiliates with four super-rate progressive tax rate |
| Taxpaying body | Rate of income tax |
| Shenzhen Nanshan Power Co., Ltd.(“the Company”) | 25% |
| Shenzhen New Power Industrial Co., Ltd (“New Power Company”) | 25% |
| Shenzhen Shennan Power Gas Turbine Engineering Technique Co., Ltd. (“Engineering Company”) | 25% |
| Shenzhen Server Energy Co., Ltd. (“Shenzhen Server”) | 25% |
| Shenzhen Shennan Power Environment Protection Co., Ltd (“Environment Protection Company”) | 25% |
| Shen Nan Dian (Zhongshan) Power Co., Ltd. (“Zhongshan Power”) | 25% |
| Shen Nan Dian (Dongguan) Weimei Power Company Limited (“Weimei Power ”) | 25% |
| SHENNAN ENERGY (SINGAPORE) PTE LTD(“Singapore Company”) | 17% |
| Zhongshan Shennandian Storage Co., Ltd.(“Shen Storage”) | 25% |
| HONG KONG SYNDISOME CO., LIMITED(“SYNDISOME”) | 16.5% |
| Tax | Name of the company | Relevant regulation and policies basis | Approval institution | Approval documents | Exemption range | Period of validity |
| VAT | Environment Protection Co., | “ Notice of adjustment and perfection on resources comprehensive usage and labor VAT policy”(CS No.115[2011]) | Not applicable | Not applicable | VAT free for sludge treatment | Not applicable |
| VAT | Environment Protecti | Notice on "contents of products with comprehensive utilization of resources and value-added tax | Shenzhen Provincial Office, | SQSST[2018]No.: 18302 | Resource comprehensive utilization of | 31 Aug. 2018 to 31 July 2022 |
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Tax
| Tax | Name of the company | Relevant regulation and policies basis | Approval institution | Approval documents | Exemption range | Period of validity |
| on Co., | privilege of labor service" (CS No. [2015] 78) | SAT (Qianhai SAT) | VAT refund | |||
| Enterprise income tax | SYNDISOME | “Enterprise Income Tax Law of People’s Republic of China” | State Tax Bureau of Nanshan Distinct Shenzhen | Shen Guo Sui Nan Kou Jiao Bei Zi No.: [2011]0011 | No enterprise income tax should pay for the dividend before 31 December 2007 | Not applicable |
| Item | Ending Balance | Opening Balance |
| Cash on hand | 75,645.92 | 81,491.35 |
| Bank savings | 574,808,236.06 | 337,821,258.42 |
| Other monetary fund | 350,945,522.46 | 100,413,420.04 |
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Item
| Item | Ending Balance | Opening Balance |
| Total | 925,829,404.44 | 438,316,169.81 |
| Including: total amount saving aboard | 6,240,695.02 | 6,011,752.65 |
| Item | Ending Balance | Opening Balance |
| Note receivable | 6,702,500.00 | |
| Account receivable | 132,430,024.97 | 113,349,775.76 |
| Total | 132,430,024.97 | 120,052,275.76 |
| Item | Ending Balance | Opening Balance |
| Bank acceptance | 6,702,500.00 | |
| Total | 6,702,500.00 |
| Category | Ending Balance | ||||
| Book balance | Year-end balance of bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Accrual ratio (%) | ||
| Account receivable with individual major amount and withdrawal bad debt provision independently | 3,474,613.06 | 2.52 | 3,474,613.06 | 100.00 | |
| Account receivable with bad debt | 131,861,452.21 | 95.81 | 131,861,452.21 | ||
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Category
| Category | Ending Balance | ||||
| Book balance | Year-end balance of bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Accrual ratio (%) | ||
| provision accrual based on similar credit risk characteristics of a portfolio | |||||
| Account receivable with individual minor amount but withdrawal bad debt provision independently | 2,292,027.78 | 1.67 | 1,723,455.02 | 75.19 | 568,572.76 |
| Total | 137,628,093.05 | 100.00 | 5,198,068.08 | 3.78 | 132,430,024.97 |
| Category | Opening Balance | ||||
| Book balance | Year-end balance of bad debt provision | Book value | |||
| Amount | Ratio (%) | Amount | Accrual ratio （%） | ||
| Account receivable with individual major amount and withdrawal bad debt provision independently | 3,474,613.06 | 2.94 | 3,474,613.06 | 100.00 | |
| Account receivable with bad debt provision accrual based on similar credit risk characteristics of a portfolio | 106,116,231.59 | 89.81 | 0.00 | 106,116,231.59 | |
| Account receivable with individual minor amount but withdrawal bad debt provision independently | 8,571,655.54 | 7.25 | 1,338,111.37 | 15.61 | 7,233,544.17 |
| Total | 118,162,500.19 | 100.00 | 4,812,724.43 | 4.07 | 113,349,775.76 |
| Account receivable (enterprise) | Ending Balance | |||
| Account receivable | Year-end balance of bad debt provision | Accrual ratio （%） | Accrual reasons | |
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Shenzhen Petrochemical Products BondedTrading Co., Ltd.
| Shenzhen Petrochemical Products Bonded Trading Co., Ltd. | 3,474,613.06 | 3,474,613.06 | 100.00 | Un-collectable |
| Total | 3,474,613.06 | 3,474,613.06 | 100.00 |
| Account receivable | Ending Balance | ||
| Book balance | Year-end balance of bad debt provision | Accrual ratio （%） | |
| Account of engineering receivable | 1,937,145.51 | 1,368,572.75 | 70.65 |
| Amount of oil sales receivable | 146,915.10 | 146,915.10 | 100.00 |
| Amount of dry mud sales receivable | 69,900.10 | 69,900.10 | 100.00 |
| Gas revenue | 138,067.07 | 138,067.07 | 100.00 |
| Total | 2,292,027.78 | 1,723,455.02 | 75.19 |
| Item | Ending amount | Opening amount | ||
| Amount | Proportion (%) | Amount | Proportion (%) | |
| Within 1year | 131,858,563.21 | 95.81 | 112,392,970.35 | 95.12 |
| 1 to 2years | ||||
| 2 to 3years | 442,000.00 | 0.37 | ||
| Over 3 years | 5,769,529.84 | 4.19 | 5,327,529.84 | 4.51 |
| Total | 137,628,093.05 | 100.00 | 118,162,500.19 | 100.00 |
2018年度财务报表附注
The total amount of the Company’s top 5 year end balance of receivables in this year collected by debtors is 129,395,214.00Yuan, accounting for 94.02% of the total amount of year end balance of receivables; the total amount of year end balance ofthe corresponding provision for bad debts is 3,474,613.06 Yuan.
3. Account paid in advance
(1) Account paid in advance classified according to age
| Age | Ending Balance | Opening Balance | ||
| Amount | Proportion (%) | Amount | Proportion (%) | |
| Within 1year | 53,317,190.18 | 99.37 | 119,008,304.61 | 99.94 |
| 1 to 2years | 277,000.00 | 0.52 | ||
| 2 to 3years | 18,304.20 | 0.02 | ||
| Over 3 years | 61,586.94 | 0.11 | 43,282.74 | 0.04 |
| Total | 53,655,777.12 | 100.00 | 119,069,891.55 | 100.00 |
| Item | Ending Balance | Opening Balance |
| Other account receivable | 40,133,297.74 | 38,771,888.74 |
| Interest receivable | ||
| Dividend receivable | ||
| Total | 40,133,297.74 | 38,771,888.74 |
| Category | Ending Balance | ||||
| Book balance | Year-end balance of bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual ratio （%） | ||
| Other account receivable with individual | 20,341,666.46 | 28.26 | 20,341,666.46 | 100.00 | 0.00 |
2018年度财务报表附注
Category
| Category | Ending Balance | ||||
| Book balance | Year-end balance of bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual ratio （%） | ||
| major amount and withdrawal bad debt provision independently | |||||
| Other account receivable withdrawal bad debt provision by group of credit risk characteristics | 39,543,015.85 | 54.94 | 39,543,015.85 | ||
| Other account receivable with individual minor amount but withdrawal bad debt provision independently | 12,093,035.87 | 16.80 | 11,502,753.98 | 95.12 | 590,281.89 |
| Total | 71,977,718.18 | 100.00 | 31,844,420.44 | 44.24 | 40,133,297.74 |
| Category | Opening Balance | ||||
| Book balance | Year-end balance of bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual ratio （%） | ||
| Other account receivable with individual major amount and withdrawal bad debt provision independently | 20,341,666.46 | 28.81 | 20,341,666.46 | 100.00 | |
| Other account receivable withdrawal bad debt provision by group of credit risk characteristics | 37,929,326.85 | 53.71 | 37,929,326.85 | ||
| Other account receivable with individual minor amount but withdrawal bad debt provision independently | 12,345,315.87 | 17.48 | 11,502,753.98 | 93.18 | 842,561.89 |
| Total | 70,616,309.18 | 100.00 | 31,844,420.44 | 45.09 | 38,771,888.74 |
2018年度财务报表附注
year-end
| Other account receivable(units) | Ending Balance | |||
| Other account receivable | Year-end balance of bad debt provision | Accrual ratio （%） | Accrual reasons | |
| Huiyang Kangtai Industrial Company | 14,311,626.70 | 14,311,626.70 | 100.00 | Un-collectable |
| Shandong Jinan Generation Equipment Plant | 3,560,000.00 | 3,560,000.00 | 100.00 | Un-collectable |
| Individual income tax | 2,470,039.76 | 2,470,039.76 | 100.00 | Un-collectable |
| Total | 20,341,666.46 | 20,341,666.46 | 100.00 | |
| Other account receivable | Ending Balance | ||
| Book balance | Year-end balance of bad debt provision | Accrual ratio （%） | |
| Dormitory amount receivable | 2,083,698.16 | 1,736,004.16 | 83.31 |
| Deposit receivable | 1,517,562.84 | 1,312,974.95 | 86.52 |
| Bureau of Finance of Zhongshan Municipality | 219,192.00 | 219,192.00 | 100.00 |
| Administrative Office of Nanshan District Shenzhen | 50,000.00 | 12,000.00 | 24.00 |
| Personal money | 7,498,997.87 | 7,498,997.87 | 100.00 |
| Other | 723,585.00 | 723,585.00 | 100.00 |
| Total | 12,093,035.87 | 11,502,753.98 | 95.12 |
| Item | Ending amount | Opening amount | ||
| Amount | Proportion (%) | Amount | Proportion (%) | |
| Within 1year | 5,465,474.63 | 7.59 | 11,017,914.66 | 15.60 |
2018年度财务报表附注
Item
| Item | Ending amount | Opening amount | ||
| Amount | Proportion (%) | Amount | Proportion (%) | |
| 1 to 2years | 8,224,869.28 | 11.43 | 2,586,964.78 | 3.66 |
| 2 to 3years | 2,112,308.80 | 2.93 | 328,508.03 | 0.47 |
| Over 3 years | 56,175,065.47 | 78.05 | 56,682,921.71 | 80.27 |
| Total | 71,977,718.18 | 100.00 | 70,616,309.18 | 100.00 |
| Name of the company | Relationship with the Company | Ending Balance | Age | Proportion in total year-end balance of other account receivable (%) | Year-end balance of bad debt provision Ending Balance |
| Huidong Server Harbor Comprehensive Development Co., Ltd. | Related party | 23,138,899.40 | Within5years | 32.15 | |
| Huiyang County Kangtai Industrial Company | Non-related party | 14,311,626.70 | Over 4 years | 19.88 | 14,311,626.70 |
| Dongguan Shifeng Natural Gas Transmission Co., Ltd. | Non-related party | 5,000,000.00 | Within 2 years | 6.95 | |
| China Machinery Engineering Corporation | Non-related party | 4,025,165.77 | Within 3years | 5.59 | |
| Shandong Jinan Power Equipment Factory | Non-related party | 3,560,000.00 | over 3 years | 4.95 | 3,560,000.00 |
| Total | 50,035,691.87 | — | 69.52 | 17,871,626.70 |
| Name of the company | Government subsidy | Ending Balance | Age at year-end | Time, amount and basis expected to collected |
| Qianghai National Tax Bureau | VAT refund upon collection | 249,912.44 | Within one year | Collected in full in next fiscal period |
| Total | 249,912.44 |
2018年度财务报表附注
5. Inventory
(1) Classification
| Item | Ending Balance | ||
| Book balance | Depreciation provision | Book value | |
| Raw materials | 177,479,127.97 | 52,720,793.00 | 124,758,334.97 |
| Total | 177,479,127.97 | 52,720,793.00 | 124,758,334.97 |
| Item | Opening Balance | ||
| Book balance | Depreciation provision | Book value | |
| Raw materials | 130,555,696.89 | 52,720,793.00 | 77,834,903.89 |
| Total | 130,555,696.89 | 52,720,793.00 | 77,834,903.89 |
| Item | Opening Balance | Current increased | Current decreased | Ending Balance | ||
| Accrual | Other | Switch-back or write-off | Other | |||
| Raw materials | 52,720,793.00 | 52,720,793.00 | ||||
| Total | 52,720,793.00 | 52,720,793.00 | ||||
| Item | Accrual basis | Reasons of switch-back | Reasons of write-off |
| Raw materials | Cost higher the net realizable value | Not applicable | Not applicable |
| Item | Ending Balance | Opening Balance |
| VAT input tax deductible | 383,495,754.13 | 446,786,369.31 |
| Enterprise income tax paid in advance | 6,583,089.98 | 5,368,153.93 |
| Other | 30,000.00 | 30,000.00 |
| Total | 390,108,844.11 | 452,184,523.24 |
2018年度财务报表附注
7 Financial assets available for sale
(1) Financial assets available for sale
| Item | Ending Balance | Opening Balance | ||||
| Book balance | Depreciation reserves | Book value | Book balance | Depreciation reserves | Book value | |
| Equity instrument available for sale | 63,115,000.00 | 2,500,000.00 | 60,615,000.00 | 63,115,000.00 | 2,500,000.00 | 60,615,000.00 |
| Including: measured by cost | 63,115,000.00 | 2,500,000.00 | 60,615,000.00 | 63,115,000.00 | 2,500,000.00 | 60,615,000.00 |
| Total | 63,115,000.00 | 2,500,000.00 | 60,615,000.00 | 63,115,000.00 | 2,500,000.00 | 60,615,000.00 |
| The invested entity | Book balance | Depreciation reserves | ||||
| Year-begin | +,- | Year-end | Year-begin | +,- | Year-end | |
| Jiangxi Nuclear Power Co., Ltd. | 60,615,000.00 | 60,615,000.00 | ||||
| Shenzhen Petrochemical Products Bonded Trading Co., Ltd. | 2,500,000.00 | 2,500,000.00 | 2,500,000.00 | 2,500,000.00 | ||
| Total | 63,115,000.00 | 63,115,000.00 | 2,500,000.00 | 2,500,000.00 | ||
| The invested entity | Shareholding ratio in invested company(%) | Cash bonus |
| Jiangxi Nuclear Power Co., Ltd. | 5.00 | |
| Shenzhen Petrochemical Products Bonded Trading Co., Ltd. | 4.00 | |
| Total | - |
| The invested entity | Opening | +,- |
2018年度财务报表附注
Balance
| Balance | Additional investment | Disinvestment | Investment gains/losses recognized by equity method | Other comprehensive income adjustment | Other changes in equity | |
| I. Joint venture | ||||||
| Huidong Server Harbor Comprehensive Development Company | 18,254,673.40 | -2,205,628.45 | ||||
| Total | 18,254,673.40 | -2,205,628.45 |
| The invested entity | +,- | Ending Balance | Year-end balance of depreciation reserves | ||
| Declaration of cash dividends or profits | Provision for impairment | Other | |||
| I. Joint venture | |||||
| Huidong Server Harbor Comprehensive Development Company | 16,049,044.95 | ||||
| Total | 16,049,044.95 | ||||
| Item | House and building | Land use right | Construction in process | Total |
| I. Original book value | ||||
| 1. Opening Balance | 9,708,014.96 | 9,708,014.96 | ||
| 2. Current increased | ||||
| 3. Current decreased | ||||
| 4. Ending Balance | 9,708,014.96 | 9,708,014.96 | ||
| II. accumulated depreciation and accumulated amortization | ||||
| 1. Opening Balance | 6,905,574.65 | 6,905,574.65 |
2018年度财务报表附注
Item
| Item | House and building | Land use right | Construction in process | Total |
| 2. Current increased | 196,137.60 | 196,137.60 | ||
| （1）accrual or amortization | 196,137.60 | 196,137.60 | ||
| 3. Current decreased | ||||
| 4. Ending Balance | 7,101,712.25 | 7,101,712.25 | ||
| III. depreciation provision | ||||
| 1. Opening Balance | ||||
| 2. Current increased | ||||
| 3. Current decreased | ||||
| 4. Ending Balance | ||||
| IV. Book value | ||||
| 1. Year-end book value | 2,606,302.71 | 2,606,302.71 | ||
| 2. Year-begin book value | 2,802,440.31 | 2,802,440.31 |
| Item | Ending Balance | Opening Balance |
| Fixed assets | 1,405,648,674.64 | 1,420,620,565.05 |
| Disposal of fixed assets | 1,314.60 | |
| Total | 1,405,649,989.24 | 1,420,620,565.05 |
| Item | House and buildings | Machinery equipment | Transportation tools | Other equipment | Total |
| I. Original book value | |||||
| 1.Opening Balance | 450,244,770.68 | 4,040,500,312.08 | 21,308,218.22 | 48,167,921.16 | 4,560,221,222.14 |
| 2.Current increased | 43,998,604.26 | 91,748,827.63 | 3,913,866.29 | 3,546,581.27 | 143,207,879.45 |
| (1) Purchase | 43,998,604.26 | 13,617,497.08 | 3,913,866.29 | 2,677,377.87 | 64,207,345.50 |
| (2) Construction in | 77,853,933.32 | 840,980.45 | 78,694,913.77 |
2018年度财务报表附注
Item
| Item | House and buildings | Machinery equipment | Transportation tools | Other equipment | Total |
| process transfer-in | |||||
| （3）Increased by combination | 277,397.23 | 28,222.95 | 305,620.18 | ||
| 3. Current decreased | 583,553.00 | 120,558,636.26 | 3,527,441.00 | 779,973.03 | 125,449,603.29 |
| (1) Disposal or scrapping | 583,553.00 | 57,562,794.22 | 3,527,441.00 | 779,973.03 | 62,453,761.25 |
| （2）Other decreased | 62,995,842.04 | 62,995,842.04 | |||
| 4. Ending Balance | 493,659,821.94 | 4,011,690,503.45 | 21,694,643.51 | 50,934,529.40 | 4,577,979,498.30 |
| II. Accumulated depreciation | |||||
| 1. Opening Balance | 282,063,887.10 | 2,649,610,431.93 | 16,993,672.09 | 40,811,456.40 | 2,989,479,447.52 |
| 2. Current increased | 13,338,892.67 | 100,672,619.66 | 1,117,034.52 | 1,017,553.12 | 116,146,099.97 |
| (1) Accrual | 13,338,892.67 | 100,672,619.66 | 1,117,034.52 | 1,017,553.12 | 116,146,099.97 |
| 3. Current decreased | 360,687.06 | 70,084,236.11 | 3,270,196.90 | 713,513.88 | 74,428,633.95 |
| (1) Disposal or scrapping | 360,687.06 | 48,537,039.85 | 3,270,196.90 | 713,513.88 | 52,881,437.69 |
| （5）Other decreased | 21,547,196.26 | 21,547,196.26 | |||
| 4. Ending Balance | 295,042,092.71 | 2,680,198,815.48 | 14,840,509.71 | 41,115,495.64 | 3,031,196,913.54 |
| III. Impairment provision | |||||
| 1. Opening Balance | 14,860,025.13 | 135,261,184.44 | 150,121,209.57 | ||
| 2. Current increased | |||||
| (1) Accrual | |||||
| 3. Current decreased | 8,987,299.45 | 8,987,299.45 | |||
| (1) Disposal or scrapping | 8,987,299.45 | 8,987,299.45 | |||
| 4. Ending Balance | 14,860,025.13 | 126,273,884.99 | 141,133,910.12 | ||
| IV. Book value | |||||
| 1.Closing book value | 183,757,704.10 | 1,205,217,802.98 | 6,854,133.80 | 9,819,033.76 | 1,405,648,674.64 |
2018年度财务报表附注
Item
| Item | House and buildings | Machinery equipment | Transportation tools | Other equipment | Total |
| 2.Opening book value | 153,320,858.45 | 1,255,628,695.71 | 4,314,546.13 | 7,356,464.76 | 1,420,620,565.05 |
| Item | Original book value | Accumulated depreciation | Impairment provision | Book value | Note |
| Machinery equipment | 603,800,161.26 | 508,342,980.64 | 53,700,282.66 | 41,756,897.96 | Processing equipment of heavy oil and generation unit |
| Housing & buildings | 137,799,917.53 | 101,367,169.95 | 19,008,224.87 | 17,424,522.71 | Wharf, processing workshop of heavy oil |
| Transportation equipment | 256,300.00 | 230,670.00 | 25,630.00 | Idle vehicles | |
| Total | 741,856,378.79 | 609,940,820.59 | 72,708,507.53 | 59,207,050.67 |
| Item | Book value | Reasons for failing to complete the property rights certificate |
| Comprehensive building | 18,665,590.95 | Procedures uncompleted |
| Steam engine room and annex building | 10,180,595.77 | Procedures uncompleted |
| Office building | 5,110,171.56 | Procedures uncompleted |
| Administrative office building | 4,982,442.49 | Procedures uncompleted |
| Production and inspection building | 4,846,017.33 | Procedures uncompleted |
| Booster station | 4,497,503.92 | Procedures uncompleted |
| Comprehensive building | 4,042,163.59 | Procedures uncompleted |
| Draft cooling tower | 3,270,968.18 | Procedures uncompleted |
| Chemical water tower | 2,684,669.86 | Procedures uncompleted |
| Circulating water pump house | 1,725,332.18 | Procedures uncompleted |
| Turbine building | 1,629,843.40 | Procedures uncompleted |
2018年度财务报表附注
Item
| Item | Book value | Reasons for failing to complete the property rights certificate |
| Comprehensive building | 18,665,590.95 | Procedures uncompleted |
| Chemical water workshop and foundation of water tank | 1,554,589.45 | Procedures uncompleted |
| Industry pool and industry pump house | 682,279.44 | Procedures uncompleted |
| Ventilation system of the whole plant | 529,058.47 | Procedures uncompleted |
| Treatment shop for heavy oil | 526,281.29 | Procedures uncompleted |
| Oil treatment room and oil un-loading platform | 337,538.98 | Procedures uncompleted |
| Comprehensive building canteen | 304,958.07 | Procedures uncompleted |
| Fire pump house | 274,670.13 | Procedures uncompleted |
| Start-up boiler house | 232,440.08 | Procedures uncompleted |
| Mail room of the main entrance | 201,868.01 | Procedures uncompleted |
| Total | 47,613,392.20 |
| Item | Ending Balance | Opening Balance |
| Other | 1,314.60 | |
| Total | 1,314.60 |
| Item | Ending Balance | Opening Balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Cogeneration | 64,754,943.63 | 64,754,943.63 | 47,221,713.47 | 47,221,713.47 | ||
| Oil to Gas Works | 32,871,600.26 | 32,871,600.26 | 32,871,600.26 | 32,871,600.26 | ||
| Technical innovation | 17,021,868.33 | 17,021,868.33 | 3,712,764.69 | 3,712,764.69 | ||
| Other | 571,196.43 | 571,196.43 | 24,263.76 | 24,263.76 | ||
2018年度财务报表附注
Item
| Item | Ending Balance | Opening Balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Total | 115,219,608.65 | 32,871,600.26 | 82,348,008.39 | 83,830,342.18 | 32,871,600.26 | 50,958,741.92 |
| Item | Budget | Opening Balance | Increase of this year | Transferred fixed assets in this year | Other decrease in the year | Ending Balance |
| Cogeneration | 120,000,000.00 | 47,221,713.47 | 17,533,230.16 | 64,754,943.63 | ||
| Oil to Gas Works | 74,400,000.00 | 32,871,600.26 | 32,871,600.26 | |||
| Technical innovation | 3,712,764.69 | 88,519,259.42 | 75,005,425.78 | 204,730.00 | 17,021,868.33 | |
| Other | 24,263.76 | 4,383,625.79 | 3,689,487.99 | 147,205.13 | 571,196.43 | |
| Total | 194,400,000.00 | 83,830,342.18 | 110,436,115.37 | 78,694,913.77 | 351,935.13 | 115,219,608.65 |
| Projects | Proportion of accumulative project investment in budget (%) | Project progress (%) | Accumulative amount of capitalization of interest | Including: capitalization of interest | Rate of interest capitalization (%) | Capital resources |
| Cogeneration | 53.96 | 53.96 | 5,114,154.26 | 3,117,772.76 | 5.67 | Self-raised and borrowing |
| Oil to Gas Works | 63.76 | 63.76 | Self-raised | |||
| Technical innovation | Not applicable | Self-raised | ||||
| Other | Not applicable | Self-raised | ||||
| Total | 5,114,154.26 | 3,117,772.76 |
| Item | Land use right | Software | Financial software | Total |
| I. Original book value | ||||
| 1.Opening Balance | 91,398,125.27 | 3,516,969.85 | 16,640.00 | 94,931,735.12 |
2018年度财务报表附注
Item
| Item | Land use right | Software | Financial software | Total |
| 2.Current increased | ||||
| (1) Purchase | ||||
| 3、Current decreased | ||||
| (1) Disposal | ||||
| 4、Ending Balance | 91,398,125.27 | 3,516,969.85 | 16,640.00 | 94,931,735.12 |
| II. Accumulated amortization | ||||
| 1. Opening Balance | 43,723,974.26 | 2,725,889.73 | 11,370.53 | 46,461,234.52 |
| 2. Current increased | 2,199,240.72 | 280,676.68 | 3,327.96 | 2,483,245.36 |
| (1) Accrual | 2,199,240.72 | 280,676.68 | 3,327.96 | 2,483,245.36 |
| 3. Current decreased | ||||
| (1) Disposal | ||||
| 4. Ending Balance | 45,923,214.98 | 3,006,566.41 | 14,698.49 | 48,944,479.88 |
| III. Impairment provision | ||||
| 1.Opening Balance | ||||
| 2.Current increased | ||||
| (1) Accrual | ||||
| 3.Current decreased | ||||
| (1) Disposal | ||||
| 4.Ending Balance | ||||
| IV. Book value | ||||
| 1.Closing book value | 45,474,910.29 | 510,403.44 | 1,941.51 | 45,987,255.24 |
| 2.Opening book value | 47,674,151.01 | 791,080.12 | 5,269.47 | 48,470,500.60 |
| Item | Book value | Reasons for failing to complete the property rights certificate |
| Land use right of the wharf and pipe gallery | 509,921.94 | Property rights certificate is undergoing |
| Total | 509,921.94 |
2018年度财务报表附注
13Deferred income tax assets and deferred income tax liabilities（1）Deferred income tax assets without offsetting
| Item | Ending Balance | Opening Balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Account receivable Year-end balance of bad debt provision | 5,060,001.01 | 1,265,000.26 | 4,674,657.36 | 1,159,926.83 |
| Bad debt provision for other receivable | 723,585.00 | 180,896.25 | 723,585.00 | 180,896.25 |
| Impairment provision for financial assets available for sale | 2,500,000.00 | 625,000.00 | 2,500,000.00 | 625,000.00 |
| Other | 1,711.00 | 427.75 | 3,824,854.27 | 956,213.57 |
| Total | 8,285,297.01 | 2,071,324.26 | 11,723,096.63 | 2,922,036.65 |
| Item | Ending Balance | Opening Balance |
| Deductible temporary difference | 276,187,603.06 | 289,784,873.82 |
| Deductible loss | 395,069,735.26 | 360,690,491.88 |
| Total | 671,257,338.32 | 650,475,365.70 |
| Year | Ending Balance | Opening Balance | Note |
| 2019 | 178,967,165.82 | 178,967,165.82 | |
| 2020 | 47,718,047.63 | 47,940,421.45 | |
| 2021 | 83,592,334.40 | 92,438,531.80 | |
| 2022 | 41,344,372.81 | 41,344,372.81 | |
| 2023 | 43,447,814.60 | ||
| Total | 395,069,735.26 | 360,690,491.88 |
| Item | Ending Balance | Opening Balance |
2018年度财务报表附注
Item
| Item | Ending Balance | Opening Balance |
| Advance payment on construction and equipment | 2,023,500.00 | 10,048,600.00 |
| Project of LNG (Note) | 22,882,181.78 | 22,882,181.78 |
| Total | 24,905,681.78 | 32,930,781.78 |
| Item | Ending Balance | Opening Balance |
| Credit loans | 860,000,000.00 | 50,000,000.00 |
| Guarantee loans | 140,000,000.00 | 465,850,000.00 |
| Total | 1,000,000,000.00 | 515,850,000.00 |
| Item | Ending Balance | Opening Balance |
| Note payable | 51,439,580.56 | |
| Account payable | 18,065,898.69 | 15,094,912.60 |
| Total | 18,065,898.69 | 66,534,493.16 |
| Category | Ending Balance | Opening Balance |
| Trade acceptance | ||
| Bank acceptance | 51,439,580.56 | |
| Total | 51,439,580.56 |
2018年度财务报表附注
Notes expired at period-end without paid was 0.0 Yuan. (end of last year: 0.00 Yuan)
（2）Details of account payable
| Item | Ending Balance | Opening Balance |
| Materials | 8,545,427.20 | 13,670,020.13 |
| Electricity | 906,278.78 | 811,442.78 |
| Others | 8,614,192.71 | 613,449.69 |
| Total | 18,065,898.69 | 15,094,912.60 |
| Item | Opening Balance | Increase this year | Decrease this year | Ending Balance | |
| I. Short-term remuneration | 44,486,690.44 | 122,588,120.59 | 122,401,318.66 | 44,673,492.37 | |
| II. Post-employment welfare-defined contribution plans | 3,850,897.81 | 11,528,281.24 | 15,140,071.76 | 239,107.29 | |
| III. Severance Pay | |||||
| IV. Other welfare due within one year | |||||
| V. Other | |||||
| Total | 48,337,588.25 | 134,116,401.83 | 137,541,390.42 | 44,912,599.66 |
| Item | Opening Balance | Increase this year | Decrease this year | Ending Balance |
| 1. Wages , bonuses, allowances and subsidies | 41,922,487.80 | 107,454,026.16 | 105,788,919.86 | 43,587,594.10 |
| 2. Welfare for workers and staff | 613,770.12 | 613,770.12 | ||
| 3. Social insurance | 273,190.85 | 4,756,051.36 | 4,905,607.28 | 123,634.93 |
| Including: Medical insurance | 241,515.10 | 4,252,251.47 | 4,391,046.18 | 102,720.39 |
| Work injury insurance | 23,042.08 | 138,130.69 | 150,150.93 | 11,021.84 |
2018年度财务报表附注
Item
| Item | Opening Balance | Increase this year | Decrease this year | Ending Balance |
| Maternity insurance | 8,633.67 | 365,669.20 | 364,410.17 | 9,892.70 |
| Other | ||||
| 4. Housing accumulation fund | 698,573.20 | 7,867,018.24 | 8,061,733.50 | 503,857.94 |
| 5. Labor union expenditure and personnel education expense | 1,592,438.59 | 1,897,254.71 | 3,031,287.90 | 458,405.40 |
| 6. Short-term paid absence | ||||
| 7. Short-term profit sharing plan | ||||
| 8. Other | ||||
| Total | 44,486,690.44 | 122,588,120.59 | 122,401,318.66 | 44,673,492.37 |
| Item | Opening Balance | Increase in the year | Decrease in the year | Ending Balance |
| 1. Basic endowment insurance | 515,780.80 | 9,680,412.26 | 9,964,852.58 | 231,340.48 |
| 2. Unemployment insurance | 12,720.01 | 141,353.00 | 146,165.18 | 7,907.83 |
| 3. Enterprise annuity | 3,322,397.00 | 1,706,515.98 | 5,029,054.00 | -141.02 |
| Total | 3,850,897.81 | 11,528,281.24 | 15,140,071.76 | 239,107.29 |
| Item | Ending Balance | Opening Balance |
| Enterprise income tax | 11,215,405.89 | 3,959,377.93 |
| Real estate tax | 2,211,605.38 | 1,435,820.81 |
| Individual income tax | 1,251,539.31 | 2,064,852.00 |
| Land-use tax of town | 603,884.89 | 1,405,156.40 |
| VAT | 508,589.03 | 5,660,770.59 |
| Other | 209,015.05 | 911,781.03 |
| Total | 16,000,039.55 | 15,437,758.76 |
2018年度财务报表附注
19. Other account payable
| Item | Ending Balance | Opening Balance |
| Interest payable | 1,608,290.72 | 3,006,993.33 |
| Other account payable | 61,483,590.71 | 83,214,183.57 |
| Total | 63,091,881.43 | 86,221,176.90 |
| Item | Ending Balance | Opening Balance |
| Amortization of long-term loan’s interest and repayment of principal at maturity | 50,826.19 | 108,741.19 |
| Interest payable for short-term loans | 1,557,464.53 | 2,898,252.14 |
| Total | 1,608,290.72 | 3,006,993.33 |
| Item | Ending Balance | Opening Balance |
| Engineering funds | 30,866,827.67 | 24,040,896.76 |
| Quality assurance | 8,285,192.04 | 13,632,891.13 |
| Accrued expenses | 6,867,153.90 | 34,865,705.80 |
| Material payment | 5,453,034.68 | |
| Equipment fund | 457,760.33 | 439,237.63 |
| Land use fee | 348,534.19 | 423,005.75 |
| Board expenses | 479,659.27 | |
| Other | 9,205,087.90 | 9,332,787.23 |
| Total | 61,483,590.71 | 83,214,183.57 |
2018年度财务报表附注
20. Non-current liability due within one year
| Item | Ending Balance | Opening Balance |
| Long-term loans due within one year（Note VI.21） | 32,400,000.00 | |
| Total | 32,400,000.00 |
| Item | Ending Balance | Opening Balance |
| Guarantee loans | 25,940,000.00 | 58,340,000.00 |
| Less: Long-term loans due within one year | 32,400,000.00 | |
| Total | 25,940,000.00 | 25,940,000.00 |
| Item | Ending Balance | Opening Balance | 形成原因 |
| Guarantee offering outside | 26,726,232.38 | 26,788,590.38 | 注 |
| Total | 26,726,232.38 | 26,788,590.38 |
| Category | Item | Item | Amount booked in current gain/loss |
| VAT refund | 4,381,604.17 | Other income | 4,381,604.17 |
| Subsidy for low-nitrogen transformation | 2,586,861.73 | Other income | 2,586,861.73 |
| Award for added value of the industrial in Nanshan District | 1,000,000.00 | Non-operation income | 1,000,000.00 |
| Support fund of recycling economy for | 647,002.92 | Other income | 647,002.92 |
2018年度财务报表附注
Category
| Category | Item | Item | Amount booked in current gain/loss |
| sludge drying | |||
| Treasury subsidies for sludge drying | 255,000.00 | Other income | 255,000.00 |
| Subsidy for quality promotion of the air environment in Shenzhen | 147,333.34 | Other income | 147,333.34 |
| Special funds for energy conservation and emission reduction | 114,037.32 | Other income | 114,037.32 |
| Support fund of enterprise informationalization | 61,176.48 | Other income | 61,176.48 |
| Funded of energy efficiency improvement for electric machine | 34,560.00 | Other income | 34,560.00 |
| Special funds for the development of independent innovation industries | 100,000.00 | Other income | 100,000.00 |
| Funds for energy conservation and emission reduction in 2018 | 100,000.00 | Other income | 100,000.00 |
| Other | 1,000.00 | Other income | 1,000.00 |
| Other | 78,000.00 | Non-operation income | 78,000.00 |
| Item | Opening Balance | Increased in the Year | Decreased in the Year | Ending Balance | Reasons |
| Government subsidy | 41,948,231.12 | 37,510,000.00 | 3,845,971.79 | 75,612,259.33 | |
| Other | 41,948,231.12 | 37,510,000.00 | 3,845,971.79 | 75,612,259.33 | — |
| Government subsidy | Opening Balance | Increased in the Year | Decreased in the Year | Ending Balance | Assets related/income related | |||
| Amount reckoned in non-operat | Amount reckoned in other income | Cost reduction | Other decreased | |||||
2018年度财务报表附注
ionrevenue
| ion revenue | ||||||||
| Subsidy for low-nitrogen transformation | 28,274,503.83 | 2,586,861.73 | 25,687,642.10 | Assets related | ||||
| Information construction | 209,019.56 | 61,176.48 | 147,843.08 | Assets related | ||||
| Support fund of recycling economy for sludge drying | 8,745,279.79 | 647,002.92 | 8,098,276.87 | Assets related | ||||
| Treasury subsidies for sludge drying | 3,336,250.00 | 255,000.00 | 3,081,250.00 | Assets related | ||||
| Special funds for energy conservation and emission reduction | 912,297.94 | 114,037.32 | 798,260.62 | Assets related | ||||
| Funded of energy efficiency improvement for electric machine | 470,880.00 | 34,560.00 | 436,320.00 | Assets related | ||||
| Subsidy for quality promotion of the air environment in Shenzhen | 32,880,000.00 | 147,333.34 | 32,732,666.66 | Assets related | ||||
| Cogeneration | 4,630,000.00 | 4,630,000.00 | Assets related | |||||
| Total | 41,948,231.12 | 37,510,000.00 | 3,845,971.79 | 75,612,259.33 |
| Item | Opening Balance | Changes in this year(+ -) | Ending Balance | ||||
| New shares issued | Bonus shares | Capitalizing from reserves | Other | Subtotal | |||
| Total shares | 602,762,596.00 | 602,762,596.00 | |||||
| Item | Opening Balance | Increase in the year | Decrease in the year | Ending Balance |
2018年度财务报表附注
Item
| Item | Opening Balance | Increase in the year | Decrease in the year | Ending Balance |
| Capital premium | 233,035,439.62 | 233,035,439.62 | ||
| Other capital reserve | 129,735,482.48 | 129,735,482.48 | ||
| Total | 362,770,922.10 | 362,770,922.10 |
| Item | Opening Balance | Increase in the year | Decrease in the year | Ending Balance |
| Legal surplus reserve | 310,158,957.87 | 310,158,957.87 | ||
| Discretionary surplus reserve | 22,749,439.73 | 22,749,439.73 | ||
| Total | 332,908,397.60 | 332,908,397.60 |
| Item | Current Year | Last Year |
| Retained profit of last year before adjusted | 660,176,169.69 | 644,271,987.22 |
| Total retained profit adjusted (increased with +, decreased with -) | ||
| Retained profit at beginning of the year after adjusted | 660,176,169.69 | 644,271,987.22 |
| Add: net profit attributable to shareholders of parent company | 19,253,766.12 | 15,904,182.47 |
| Less: withdrawal of statutory surplus reserve | ||
| Surplus reserves withdrawal | ||
| General risk reserve withdrawal | ||
| Common Stock dividend payable | ||
| Dividend of common shares transfer as share capital | ||
| Retained profit at year-end | 679,429,935.81 | 660,176,169.69 |
2018年度财务报表附注
Item
| Item | Current amount | Last-year amount | ||
| Income | Cost | Income | Cost | |
| Main business | 1,878,841,697.58 | 1,750,795,731.12 | 2,040,134,442.78 | 1,874,139,265.32 |
| Other business | 6,095,411.42 | 1,357,596.08 | 5,632,388.96 | 423,723.62 |
| Total | 1,884,937,109.00 | 1,752,153,327.20 | 2,045,766,831.74 | 1,874,562,988.94 |
| Item | Current amount | Last-year amount |
| City maintenance tax | 3,738,452.65 | 3,944,215.76 |
| Education surtax | 2,992,379.14 | 3,052,200.62 |
| Real estate tax | 2,773,508.22 | 2,483,900.29 |
| Stamp tax | 1,278,024.52 | 1,354,763.00 |
| Environmental protection tax | 408,455.52 | |
| Land holding tax | 216,473.76 | 2,069,077.81 |
| Vehicle and vessel usage tax | 36,026.56 | 45,579.36 |
| Total | 11,443,320.37 | 12,949,736.84 |
| Item | Current amount | Last-year amount |
| Sludge treatment costs | 2,544,476.93 | 2,327,736.30 |
| Salary, welfare and social insurance | 691,816.59 | 468,902.16 |
| Social expenses | 201,223.00 | 21,494.00 |
| Agency engagement fee | 116,509.43 | 37,735.85 |
| Property insurance | 50,318.44 | 61,684.24 |
| Fleet cost | 22,500.00 | 28,143.00 |
| Labor insurance fee | 18,102.82 | 25,682.54 |
| Rental fee | 18,000.00 | 14,400.00 |
| Housing fund | 15,087.50 | 13,334.40 |
| Travel expenses | 13,014.07 | 11,453.98 |
2018年度财务报表附注
Item
| Item | Current amount | Last-year amount |
| Food expenses | 10,500.00 | 10,200.00 |
| Inspection charges | 9,764.17 | 21,839.62 |
| Communication expenses | 4,500.00 | 3,600.00 |
| Total | 3,715,812.95 | 3,046,206.09 |
| Item | Current amount | Last-year amount |
| Wages | 47,890,400.95 | 58,560,298.50 |
| Rental fee | 6,323,522.54 | 6,831,120.60 |
| Depreciation | 4,764,036.42 | 3,157,995.22 |
| Fleet cost | 3,665,196.55 | 3,723,234.00 |
| Social expenses | 3,411,512.74 | 3,394,154.23 |
| Food expenses | 3,120,617.29 | 2,669,404.62 |
| Repairing cost | 2,930,434.16 | 295,895.67 |
| Agency fee | 2,350,265.20 | 2,784,600.20 |
| Amortization of intangible assets | 1,876,332.67 | 2,013,716.49 |
| Communication expenses | 1,169,925.27 | 1,302,419.20 |
| Office fee | 1,063,065.17 | 449,676.89 |
| Corporate culture fee | 946,618.31 | 189,449.00 |
| Business travel expenses | 946,488.78 | 762,086.49 |
| Property management fee | 941,367.40 | 899,316.57 |
| Board charges | 796,816.58 | 2,178,075.90 |
| Fee for stock certificate | 627,503.93 | 1,082,131.77 |
| Eco fee | 143,781.56 | 1,894,081.17 |
| Other | 10,561,812.35 | 6,833,446.40 |
| Total | 93,529,697.87 | 99,021,102.92 |
| Item | Current amount | Last-year amount |
2018年度财务报表附注
Item
| Item | Current amount | Last-year amount |
| Interest expenses | 51,698,416.45 | 64,140,608.10 |
| Less: capitalized interest | 3,117,772.76 | 1,996,381.50 |
| Expenses interest | 48,580,643.69 | 62,144,226.60 |
| Less: interest income | 9,503,215.24 | 9,592,999.08 |
| Exchange loss (gains is listed with ”-”) | -285,596.77 | 382,827.81 |
| Other | 814,411.75 | 584,070.34 |
| Total | 39,606,243.43 | 53,518,125.67 |
| Item | Current amount | Last-year amount |
| Loss on bad debt | 385,343.65 | -1,412,696.42 |
| Total | 385,343.65 | -1,412,696.42 |
| Item | Current amount | Last-year amount | Amount reckoned in non-recurring gain/loss |
| VAT rebates | 4,381,604.17 | 2,720,787.33 | |
| Subsidy for low-nitrogen transformation | 2,586,861.73 | 3,023,380.31 | 2,586,861.73 |
| Support fund of recycling economy for sludge drying | 647,002.92 | 647,002.92 | 647,002.92 |
| Treasury subsidies for sludge drying | 255,000.00 | 255,000.00 | 255,000.00 |
| Subsidy for quality promotion of the air environment in Shenzhen | 147,333.34 | 147,333.34 | |
| Special funds for energy conservation and emission reduction | 114,037.32 | 114,037.32 | 114,037.32 |
| Special funds for the development of independent innovation industries | 100,000.00 | 100,000.00 | |
| Funds for energy conservation and emission reduction in 2018 | 100,000.00 | 200,000.00 | 100,000.00 |
| Information construction | 61,176.48 | 61,176.48 | 61,176.48 |
| Funded of energy efficiency improvement for electric machine | 34,560.00 | 30,240.00 | 34,560.00 |
2018年度财务报表附注
Item
| Item | Current amount | Last-year amount | Amount reckoned in non-recurring gain/loss |
| Employment and unemployment monitoring subsidy | 1,000.00 | 1,000.00 | 1,000.00 |
| Total | 8,428,575.96 | 7,052,624.36 | 4,046,971.79 |
| Item | Current amount | Last-year amount |
| Long-term equity investment income by equity | -2,205,628.45 | -2,050,390.78 |
| Total | -2,205,628.45 | -2,050,390.78 |
| Item | Current amount | Last-year amount | Amount reckoned into non-recurring gains/losses of the Period |
| Government subsidy without routine operation concerned | 1,078,000.00 | 1,078,000.00 | |
| Account no need to paid | 37,862,169.31 | 37,862,169.31 | |
| Other | 324,276.72 | 347,199.40 | 324,276.72 |
| Total | 39,264,446.03 | 347,199.40 | 39,264,446.03 |
| Item | Current amount | Last-year amount | Amount reckoned into non-recurring gains/losses of the Period |
| Loss of scrap from non-current assets | 1,019,608.30 | 454,644.16 | 1,019,608.30 |
| Donating expenses | 10,000.00 | 10,000.00 | 10,000.00 |
| Other | 111,924.20 | 1,280.22 | 111,924.20 |
| Total | 1,141,532.50 | 465,924.38 | 1,141,532.50 |
2018年度财务报表附注
39. Income tax expense
（1） Income tax expense
| Item | Current amount | Last-year amount |
| Current income tax | 15,145,687.43 | 8,613,253.18 |
| Deferred income tax | 850,712.39 | -25,453.64 |
| Total | 15,996,399.82 | 8,587,799.54 |
| Item | Current amount |
| Total profit | 28,449,224.57 |
| Income tax measured by statutory/applicable tax rate | 7,112,306.13 |
| Impact on subsidiary with different rates adaption | -55,236.52 |
| Impact on income tax after adjustment for previous period | |
| Impact on non-taxable income | -321,871.83 |
| Impact on cost, expenses and losses that unable to deducted | 632,051.43 |
| Effect of deductible losses of deferred tax assets unconfirmed at the earlier stage of use | -2,275,880.32 |
| Impact on deductible temporary differences or losses deductible which was un-recognized as deferred income tax assets | 10,905,030.93 |
| Change of the balance of deferred income assets/liabilities at period-begin after tax rate adjustment | |
| Impact of deduction on R&D expenses | |
| Other | |
| income tax expenses | 15,996,399.82 |
| Item | Current amount | Last-year amount |
| Government subsidy collected | 38,789,000.00 | 1,831,999.39 |
| Interest income | 9,503,215.24 | 9,592,999.08 |
2018年度财务报表附注
Item
| Item | Current amount | Last-year amount |
| Intercourse funds collected | 9,251,524.96 | 397,022,263.30 |
| Total | 57,543,740.20 | 408,447,261.77 |
| Item | Current amount | Last-year amount |
| Out-of-pocket expenses | 40,262,754.26 | 22,433,951.67 |
| Other | 25,662,072.31 | 20,302,562.91 |
| Total | 65,924,826.57 | 42,736,514.58 |
| Item | Current amount | Last-year amount |
| Margin received | 21,000,000.00 | |
| Total | 21,000,000.00 |
| Item | Current amount | Last-year amount |
| Margin paid | 5,170,000.00 | 23,133,338.86 |
| Total | 5,170,000.00 | 23,133,338.86 |
| Supplementary information | Current Period | Last Period |
| 1. Net profit adjusted to cash flow of operation activities: | ||
| Net profit | 12,452,824.75 | 377,076.76 |
| Add: Assets impairment provision | 385,343.65 | -1,412,696.42 |
| Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 116,342,237.54 | 130,794,494.35 |
| Amortization of intangible assets | 2,483,245.36 | 2,610,603.61 |
| Amortization of long-term deferred expenses | ||
| Loss from disposing fixed assets, intangible assets and other long-term |
2018年度财务报表附注
Supplementary information
| Supplementary information | Current Period | Last Period |
| assets (income listed with “-“) | ||
| Loss on retirement of fixed assets (gain is listed with “-”) | 1,019,608.30 | 454,644.16 |
| Loss from changes of fair value (income listed with “-“) | ||
| Financial expense (gain listed with “-”) | 48,377,859.72 | 62,144,226.60 |
| Investment loss (gain listed with “-”) | 2,205,628.45 | 2,050,390.78 |
| Decrease of deferred income tax asset( (increase is listed with “-”) | 850,712.39 | -25,453.64 |
| Decrease of inventory (increase is listed with “-”) | ||
| Decrease of inventory (increase is listed with “-”) | -22,553,190.20 | 4,992,369.45 |
| Decrease of operating receivable accounts (increase is listed with “-”) | 63,686,744.28 | 338,049,270.66 |
| Increase of operating payable accounts (decrease is listed with “-”) | 11,312,146.14 | -343,235,070.58 |
| Other | ||
| Net cash flow arising from operating activities | 236,563,160.38 | 196,799,855.73 |
| 2. Material investment and financing not involved in cash flow | ||
| Debt capitalization | ||
| Convertible company bond due within one year | ||
| Fixed assets acquired under finance leases | ||
| 3. Net change of cash and cash equivalents: | ||
| Balance of cash at period end | 574,956,611.70 | 411,613,377.07 |
| Less: Balance of cash at year-begin | 411,613,377.07 | 1,389,482,327.86 |
| Add: Ending balance of cash equivalent | 340,000,000.00 | |
| Less: Opening balance of cash equivalent | ||
| Net increasing of cash and cash equivalents | 503,343,234.63 | -977,868,950.79 |
| Item | Ending Balance | Opening Balance |
| I. Cash | 574,956,611.70 | 411,613,377.07 |
| Including: Cash on hand | 75,645.92 | 81,491.35 |
| Bank savings available for payment needed | 574,808,236.06 | 337,821,258.42 |
2018年度财务报表附注
Item
| Item | Ending Balance | Opening Balance |
| Other monetary capital available for payment needed | 72,729.72 | 73,710,627.30 |
| Account due from central bank available for payment | ||
| Amount due from banks | ||
| Amount call loans to banks | ||
| II. Cash equivalent | 340,000,000.00 | |
| including: bond investment due within three months | ||
| Other | 340,000,000.00 | |
| III. Balance of cash and cash equivalent at year-end | 914,956,611.70 | 411,613,377.07 |
| Including: Cash and cash equivalent of the parent company or subsidiaries with use restricted |
| Item | Book value at year-end | Restricted reason |
| Monetary Fund | 10,872,792.74 | Cash deposit |
| Total | 10,872,792.74 |
| Item | Balance of foreign currency at year-end | Conversion rate | Balance of RMB converted at year-end |
| Monetary fund | |||
| Including: USD | 850,827.96 | 6.8632 | 5,839,402.47 |
| Euro | 1,017.87 | 7.8473 | 7,987.53 |
| HKD | 561,024.73 | 0.8762 | 491,569.87 |
| SGD | 5,009.81 | 5.0062 | 25,080.11 |
2018年度财务报表附注
VIII. Equity in other entity1. Equity in subsidiaries(1) Composition of the Group
| Subsidiary | Main operation place | Registration place | Business nature | Shareholding ratio (%) | Acquired way | |
| Directly | Indirectly | |||||
| Shenzhen Server (note) | Shenzhen | Shenzhen | Trading | 50.00 | Establishment | |
| New Power | Shenzhen | Shenzhen | Power generation | 100.00 | Establishment | |
| Zhongshan Power | Zhongshan | Zhongshan | Power generation | 80.00 | Establishment | |
| Engineering Company | Shenzhen | Shenzhen | Engineering consulting | 100.00 | Establishment | |
| Weimei Power | Dongguan | Dongguan | Power generation | 70.00 | Establishment | |
| Environment Protection Company | Shenzhen | Shenzhen | Engineering | 100.00 | Establishment | |
| Singapore Company | Singapore | Singapore | Trading | 100.00 | Establishment | |
| Shenzhen Storage | Zhongshan | Zhongshan | Storage | 80.00 | Establishment | |
| Syndisome | Hong Kong | Hong Kong | Exp. & imp. Trading | 100.00 | Under different control | |
| Subsidiary | Share-holding ratio of minority (%) | Gains/losses attributable to minority in the Period | Dividend announced to distribute for minority in the Period | Ending equity of minority |
| Zhongshan Power | 20.00 | -6,515,423.71 | -18,998,975.10 | |
| Weimei Power | 30.00 | -640,597.33 | 29,517,420.19 |
| Subsidiary | Ending Balance | |||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liability | |
| Zhongshan | 98,062,301.06 | 554,996,045.40 | 653,058,346.46 | 716,297,767.96 | 31,755,453.99 | 748,053,221.95 |
2018年度财务报表附注
Subsidiary
| Subsidiary | Ending Balance | |||||
| Power | ||||||
| Weimei Power | 96,642,222.01 | 496,340,540.51 | 592,982,762.52 | 489,961,361.90 | 4,630,000.00 | 494,591,361.90 |
| Subsidiary | Opening Balance | |||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liability | |
| Zhongshan Power | 168,596,429.57 | 592,847,484.20 | 761,443,913.77 | 791,720,732.32 | 32,140,938.38 | 823,861,670.70 |
| Weimei Power | 229,231,009.01 | 528,619,381.52 | 757,850,390.53 | 657,323,665.49 | 657,323,665.49 | |
| Subsidiary | Current amount | |||
| Operation Income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Zhongshan Power | 342,354,122.68 | -32,577,118.56 | -32,577,118.56 | 87,221,436.27 |
| Weimei Power | 373,748,319.27 | -2,135,324.42 | -2,135,324.42 | 80,088,365.15 |
| Subsidiary | Last-year amount | |||
| Operation Income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Zhongshan Power | 543,470,074.17 | -15,454,466.03 | -15,454,466.03 | 56,458,919.73 |
| Weimei Power | 412,389,910.03 | -28,887,156.15 | -28,887,156.15 | 96,220,767.08 |
| Name | Main operation place | Registered place | Business nature | Share-holding ratio（%） | Accounting treatment on investment for joint venture and cooperative enterprise | |
| Directly | Indirectly | |||||
| Huidong Server | Huizhou | Huizhou | Wharf operation | 40.00 | Equity method | |
2018年度财务报表附注
（2）Financial summary for un-important joint venture or cooperative enterprise
| Item | Ending Balance /Current amount | Opening Balance /Last-year amount |
| Joint venture: | ||
| Total book value of the investment | 16,049,044.95 | 18,254,673.40 |
| Total numbers measured by share-holding ratio | ||
| —Net profit | -2,205,628.45 | -2,050,390.78 |
| —Other comprehensive income | ||
| —Total comprehensive income | -2,205,628.45 | -2,050,390.78 |
2018年度财务报表附注
floating interest rate bank loans (see details in annotation xi, 15; annotation xi, 21).Interest rate risk sensitivity analysis:
The interest rate risk sensitivity analysis is based on the following assumptions:
? Changes in market interest rates affect the interest income or expense of financial instruments withvariable interest rate;? For financial instruments with fixed rate by fair value measurement, the changes in market interest ratesonly affect their interest income or expense;? For derivative financial instruments designated as hedging instruments, the changes in market interestrates affect their fair value, and all interest rate hedging prediction is highly effective;? Calculate the changes in fair value of derivative financial instruments and other financial assets andliabilities by using the cash flow discount method at the market interest rate at the balance sheet date.
On the basis of above assumptions, in case that other variables keep unchanged, the pre-tax effect of possible reasonablechanges in interest rates on current profits and losses and shareholders' equity is as follows:
| Rate changes | The period | Last period | ||
| Net profit | Shareholder’ interest | Net profit | Shareholder’ interest | |
| 5% increased | -946,679.70 | -946,679.70 | -2,755,524.27 | -2,755,524.27 |
| 5% decreased | 946,679.70 | 946,679.70 | 2,755,524.27 | 2,755,524.27 |
2018年度财务报表附注
The Company uses bank loans as the main source of funds.
X. Related party and related transactions1. Parent company of the GroupShare holding proportion of any shareholder of the Company didn't reach 50%, and couldn'tform a holding relationship of the Company through any methods. The Company has noparent company.
2. Subsidiaries of the CompanyFound more in 1. Equity in subsidiary in Note VIII3. Joint venture and affiliated enterprise of the GroupFound more in 2. Equity in joint venture or affiliate business in Note VIII4. Other related party
| Other related party | Relationship with the Company |
| Shenzhen Energy Group Co., Ltd. (“Energy Group ”) | Shareholders have major influence on the Company |
| Dongguan Weimei Ceramics Industrial Park Co., Ltd. (” Weimei Ceramics”) | Minority shareholders of the subsidiaries |
| Zhongshan Xingzhong Group Co., Ltd.(” XINGZHONG GROUP”) | Minority shareholders of the subsidiaries |
| Shenzhen Mawan Powr Co., Ltd. (“Mawan Power Company”) | Subsidiary of ultimate controller of Energy Group |
| Shenzhen Moon Bay Oil Harbor Co., Ltd. (“Moon Bay Oil Company”) | Subsidiary of ultimate controller of Energy Group |
| Shenzhen Energy Group Holding Co., Ltd. (” Energy Holding”) | Subsidiary of ultimate controller of Energy Group |
| Shenzhen Pipe Energy Technology Development Co., ltd. (“Pipe Technology”) | Others Related party |
| Alltrust Property Insurance Company Ltd. (“Alltrust Insurance”) | Other related party |
| Director of the Company and other senior executives | Key management staff |
| Item | Current amount | Last-year amount |
| Remuneration of key manager | 580.89 | 844.36 |
2018年度财务报表附注
6. Receivable/payable items of related parties
(1) Receivable
| Item | Ending Balance | Opening Balance | ||
| Book balance | Year-end balance of bad debt provision | Book balance | Year-end balance of bad debt provision | |
| Other account receivable: | ||||
| Huidong Server | 10,205,161.44 | 11,022,401.44 | ||
| Huidong Server managed account | 12,933,737.96 | 12,829,734.22 | ||
| Total | 23,138,899.40 | 23,852,135.66 | ||
| Item | Ending Balance | Opening Balance |
| Minimum lease payments of irrevocable operating lease: | ||
| The first year after balance sheet day | 1,557,680.33 | 1,517,717.46 |
| The second year after balance sheet day | 1,557,680.33 | 1,557,680.33 |
| The third year after balance sheet day | 1,557,680.33 | 1,557,680.33 |
| Subsequent years | 56,613,421.07 | 58,171,101.39 |
| Total | 61,286,462.06 | 62,804,179.51 |
2018年度财务报表附注
and Measurement of Financial Instruments (Revised in 2017) (CK [2017] No. 7) and Accounting Standards for BusinessEnterprises No. 23 - Transfer of Financial Assets (Revised in 2017) (CK [2017] No. 8), Accounting Standards for BusinessEnterprises No. 24 - Hedge Accounting (Revised in 2017) (CK [2017] No. 9), and issued the Accounting Standards forBusiness Enterprises No. 37 – Financial Instruments Presentation (Revised in 2017) (CK [2017] No. 14) on May 2, 2017(the above-mentioned standards are collectively referred to as the “New Financial Instruments Standards”), and the domesticlisted companies are required to put them into force from January 1, 2019. The Company has implemented the above newfinancial instrument standards from January 1, 2019, and would change the relevant accounting policies in accordance withthe above new financial instrument standards.
The followings are the main contents of the accounting policy changes involved:
Under the new financial instrument standards, all recognized financial assets are subsequently measured at amortized cost orfair value.On the implementation date of the new financial instrument standards, assess the business model of managing financialassets based on the facts and circumstances of the Company on the day, assess the contractual cash flow characteristics onthe financial assets based on the facts and circumstances at the initial confirmation of the financial assets, and classify thefinancial assets into three categories: those measured at amortized cost, those measured at fair value and the changes areincluded in other comprehensive income, and those measured at fair value and the changes are included in profit or loss.Thereinto, for the equity instrument investment measured at fair value and whose changes are included in othercomprehensive income, when this financial asset derecognizes, the accumulated gain or loss previously included in othercomprehensive income will be transferred from other comprehensive income to retained earnings, and not be included in thecurrent profit and loss.Under the new financial instrument standards, the Company calculates and withdraws the impairment provision andconfirms the credit impairment losses for the financial assets measured at amortized cost, the debt instrument investmentsmeasured at fair value and whose changes are included in other comprehensive income, the lease receivables, the contractassets and the financial guarantee contract based on expected credit losses.
3. Other events occurring after the balance sheet date
Nil
XIII. Other important events1. Segment information
(1) Determining basis and accounting policies of reportable segmentsAccording to the Group's internal organization structure, management requirements and internal reporting system, the Group'sbusiness is divided into three operating segments including power and heat supply, fuel oil trade and other business, the Group'smanagement periodically evaluates the operating results of these segments so as to determine the allocation of resources andassess their performances.Segmental reporting information is disclosed in accordance with the accounting policies and measurement standards adoptedby each segment for reporting to the management, the measurement basis keep pace with the accounting and measurementbasis used for preparing financial statements.
（2）Financial information of the reportable segment
2018年度财务报表附注
Item
| Item | Power supply & heating | Fuel trading | Other | Fuel trading | Total |
| Revenue from main business | 1,769,737,958.96 | 109,103,738.62 | 1,878,841,697.58 | ||
| Cost of main business | 1,687,898,425.63 | 70,193,983.84 | 7,296,678.35 | 1,750,795,731.12 | |
| Total assets | 3,384,630,486.71 | 128,361,637.07 | 331,629,724.64 | 537,473,558.50 | 3,307,148,289.92 |
| Total liabilities | 1,288,134,563.96 | 29,926,993.34 | 44,599,463.62 | 92,312,109.88 | 1,270,348,911.04 |
| Item | Ending Balance | Opening Balance |
| Note receivable | ||
| Account receivable | 50,415,180.20 | 17,599,743.80 |
| Total | 50,415,180.20 | 17,599,743.80 |
| Category | Ending Balance | ||||
| Book balance | Year-end balance of bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Proportion (%) | ||
| Account receivable with individual major amount and withdrawal bad debt provision independently | |||||
| Account receivable with bad debt provision accrual based on similar credit risk characteristics of a portfolio | 50,415,180.20 | 100.00 | 50,415,180.20 | ||
| Account receivable with individual minor amount but withdrawal bad debt provision | |||||
2018年度财务报表附注
Category
| Category | Ending Balance | ||||
| Book balance | Year-end balance of bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Proportion (%) | ||
| independently | |||||
| Total | 50,415,180.20 | 100.00 | 50,415,180.20 | ||
| Category | Opening Balance | ||||
| Book balance | Year-end balance of bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Proportion (%) | ||
| Account receivable with individual major amount and withdrawal bad debt provision independently | |||||
| Account receivable with bad debt provision accrual based on similar credit risk characteristics of a portfolio | 17,599,743.80 | 100.00 | 17,599,743.80 | ||
| Account receivable with individual minor amount but withdrawal bad debt provision independently | |||||
| Total | 17,599,743.80 | 100.00 | 17,599,743.80 | ||
| Item | Ending amount | Opening amount | ||
| Amount | Proportion (%) | Amount | Proportion (%) | |
| Within 1year | 50,412,291.20 | 99.99 | 17,596,854.80 | 99.98 |
| 1 to 2years | ||||
| 2 to 3years | ||||
| Over 3 years | 2,889.00 | 0.01 | 2,889.00 | 0.02 |
| Total | 50,415,180.20 | 100.00 | 17,599,743.80 | 100.00 |
2018年度财务报表附注
(3) Bad debt provision accrual, collected or switch-back in the Year(4) No accounts receivable that had actually written off in the year。(5) There are no account receivable of the shareholders or related party who hold over 5 %(5% included) voting rightsin report period.(6) Top five account receivables at year-end balance listed by arrears party
The total amount of the Company’s top 5 year end balance of receivables in this year collected by debtors is 50,415,180.20Yuan, accounting for 100.00% of the total amount of year end balance of receivables; the total amount of year end balanceof the corresponding provision for bad debts is 0.00 Yuan.
2. Other account receivable
| Item | Ending Balance | Opening Balance |
| Other account receivable | 1,048,357,217.53 | 913,646,990.47 |
| Interest receivable | ||
| Dividend receivable | ||
| Total | 1,048,357,217.53 | 913,646,990.47 |
| Category | Ending Balance | ||||
| Book balance | Year-end balance of bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Proportion (%) | ||
| Other account receivable with individual major amount and withdrawal bad debt provision independently | 16,781,666.46 | 1.56 | 16,781,666.46 | 100.00 | |
| Other account receivable withdrawal bad debt provision by group of credit risk characteristics | 1,047,804,935.64 | 97.41 | 1,047,804,935.64 | ||
| Other account receivable with individual minor amount but withdrawal bad debt provision independently | 11,100,258.87 | 1.03 | 10,547,976.98 | 95.02 | 552,281.89 |
| Total | 1,075,686,860.97 | 100.00 | 27,329,643.44 | 2.54 | 1,048,357,217.53 |
2018年度财务报表附注
（Continued）
| Category | Opening Balance | ||||
| Book balance | Year-end balance of bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Proportion (%) | ||
| Other account receivable with individual major amount and withdrawal bad debt provision independently | 16,781,666.46 | 1.78 | 16,781,666.46 | 100.00 | |
| Other account receivable withdrawal bad debt provision by group of credit risk characteristics | 912,842,428.58 | 97.01 | 912,842,428.58 | ||
| Other account receivable with individual minor amount but withdrawal bad debt provision independently | 11,352,538.87 | 1.21 | 10,547,976.98 | 92.91 | 804,561.89 |
| Total | 940,976,633.91 | 100.00 | 27,329,643.44 | 913,646,990.47 | |
| Other account receivable(units) | Ending Balance | |||
| Other account receivable | Year-end balance of bad debt provision | Accrual ratio （%） | Accrual reasons | |
| Huiyang County Kangtai Industrial Company | 14,311,626.70 | 14,311,626.70 | 100.00 | Un-collectable |
| Individual income tax | 2,470,039.76 | 2,470,039.76 | 100.00 | Un-collectable |
| Total | 16,781,666.46 | 16,781,666.46 | 100.00 | |
| Other account receivable | Ending Balance | ||
| Book balance | Year-end balance of bad debt provision | Accrual ratio （%） | |
| Dormitory amount receivable | 2,083,698.16 | 1,736,004.16 | 83.31 |
2018年度财务报表附注
Other account receivable
| Other account receivable | Ending Balance | ||
| Book balance | Year-end balance of bad debt provision | Accrual ratio （%） | |
| Deposit receivable | 1,517,562.84 | 1,312,974.95 | 86.52 |
| Personal account receivable | 7,498,997.87 | 7,498,997.87 | 100.00 |
| Total | 11,100,258.87 | 10,547,976.98 | 95.02 |
| Item | Ending amount | Opening amount | ||
| Amount | Proportion (%) | Amount | Proportion (%) | |
| Within 1year | 149,794,796.18 | 13.93 | 294,822,751.50 | 31.33 |
| 1 to 2years | 279,937,466.31 | 26.02 | 224,125,985.68 | 23.82 |
| 2 to 3years | 224,125,985.68 | 20.84 | 67,673,287.81 | 7.19 |
| Over 3 years | 421,828,612.80 | 39.21 | 354,354,608.92 | 37.66 |
| Total | 1,075,686,860.97 | 100.00 | 940,976,633.91 | 100.00 |
| Name of the company | Relationship with the Company | Ending Balance | Age | proportion in total year-end balance of other account receivable(%) |
| Zhongshan Power | Subsidiary | 601,209,603.84 | Within 1 year to over 3 years | 55.89 |
| Weimei Power | Subsidiary | 435,904,830.13 | Within 1 year to over 3 years | 40.52 |
| Environment Protection Company | Subsidiary | 5,703,462.76 | Within 1 year to over 3 years | 0.53 |
| Engineering | Subsidiary | 2,219,491.59 | Within 1 year | 0.21 |
2018年度财务报表附注
Name of the
company
| Name of the company | Relationship with the Company | Ending Balance | Age | proportion in total year-end balance of other account receivable(%) |
| Zhongshan Power | Subsidiary | 601,209,603.84 | Within 1 year to over 3 years | 55.89 |
| Company | ||||
| Singapore Company | Subsidiary | 1,521,871.99 | Within 1 year to over 3 years | 0.14 |
| Total | 1,046,559,260.31 | 97.29 |
| Name of the company | Relationship with the Company | Ending Balance | Age | proportion in total year-end balance of other account receivable(%) | Year-end balance of bad debt provision Ending Balance |
| Zhongshan Power Company | Related party | 601,209,603.84 | Within 1 year to over 3 years | 55.89 | |
| Weimei Power | Subsidiary | 435,904,830.13 | Within 3 years | 40.52 | |
| Huiyang County Kangtai Industrial Company | Non-related party | 14,311,626.70 | Over 3 years | 1.33 | 14,311,626.70 |
| Shen Nan Environment Protection | Related party | 5,703,462.76 | Within 3 years | 0.53 | |
| Individual income tax | Non-related party | 2,470,039.76 | Over 3 years | 0.23 | 2,470,039.76 |
| Total | 1,059,599,563.19 | 98.5 | 16,781,666.46 |
| Item | Ending Balance | Opening Balance |
2018年度财务报表附注
Book balance
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Investment to subsidiary | 691,982,849.76 | 388,641,684.76 | 303,341,165.00 | 691,982,849.76 | 691,982,849.76 | |
| Investment to joint venture and affiliate enterprise | ||||||
| Total | 691,982,849.76 | 388,641,684.76 | 303,341,165.00 | 691,982,849.76 | 691,982,849.76 |
| The invested entity | Opening Balance | Increase in the year | Decrease in the year | Ending Balance | Impairment provision accrual in the Year | Year-end balance of depreciation reserves |
| Shenzhen Server | 26,650,000.00 | 26,650,000.00 | ||||
| New Power Company | 71,270,000.00 | 71,270,000.00 | ||||
| Zhongshan Power | 410,740,000.00 | 410,740,000.00 | 347,745,035.00 | 347,745,035.00 | ||
| Engineering Company | 6,000,000.00 | 6,000,000.00 | ||||
| Weimei Power | 115,319,049.76 | 115,319,049.76 | 40,896,649.76 | 40,896,649.76 | ||
| Singapore Company | 6,703,800.00 | 6,703,800.00 | ||||
| Environment Protection | 55,300,000.00 | 55,300,000.00 |
2018年度财务报表附注
The invested
entity
| The invested entity | Opening Balance | Increase in the year | Decrease in the year | Ending Balance | Impairment provision accrual in the Year | Year-end balance of depreciation reserves |
| Company | ||||||
| Total | 691,982,849.76 | 691,982,849.76 | 388,641,684.76 | 388,641,684.76 |
| Item | Current amount | Last-year amount | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 652,426,185.97 | 730,133,603.64 | 632,907,861.34 | 674,545,439.01 |
| Other business | 133,534,765.04 | 14,000,614.54 | 84,814,060.10 | 7,660,137.38 |
| Total | 785,960,951.01 | 744,134,218.18 | 717,721,921.44 | 682,205,576.39 |
2018年度财务报表附注
XV. Supplementary information1. Statement of non-recurring gains/losses
| Item | Amount | Note |
| Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to national standards, which are closely relevant to enterprise’s business) | 5,124,971.79 | |
| Other non-operating income and expenditure except for the aforementioned items | 37,044,913.53 | |
| Subtotal | 42,169,885.32 | |
| Impact on income tax | 6,525,056.89 | |
| Impact on minority shareholders’ equity (post-tax) | 2,875,815.02 | |
| Total | 32,769,013.41 |
| Profit in the Period | Weighted average ROE (%)） | EPS | |
| Basic EPS | Diluted EPS | ||
| Net profit attributable to shareholders of the listed company | 0.98 | 0.03 | 0.03 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | -0.69 | -0.02 | -0.02 |
| Legal Representative: | Accounting Principal： | CFO： | Accounting Firm’s Principal | ||
| Date： | Date： | Date： | Date： | ||