Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
Stock code: 000037, 200037 Stock abbreviation: Shennandian A, Shennandian B Announcement No.: 2023-031
Shenzhen Nanshan Power Co., Ltd.
The Semi-Annual Report 2023
August 25, 2023
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
Section I Important Notes, Table of Contents and InterpretationsThe Board of Directors, the Board of Supervisors, directors, supervisorsand senior officers of the Company guarantee that the contents of the semi-annual report are true, accurate and complete, and do not contain falserecords, misleading statements or major omissions, and that they bearindividual and joint legal liabilities.
Chairman Kong Guoliang, person in charge of accounting and GM ChenYuhui, CFO Zhang Xiaoyin and head of accounting department (chiefaccountants) Lin Xiaojia declare that the financial reports in this semi-annualreport are true, accurate and complete.
Except director Mr. Sun Huirong was unable to attend the Board Meetingpersonally to review annual report due to work reasons, authorized directorMr. Huang Qing to attend the meeting and exercise voting rights on his behalf.All other directors attended the Board Meeting for annual report deliberation.
The Company plans not to distribute cash dividends, issue bonus shares,or increase share capital through capitalization of reserves.
Any forward-looking statements in this semi-annual report, includingfuture plans, do not constitute a material commitment of the Company toinvestors. Investors are kindly requested to pay attention to investment risks.
The semi-annual report is prepared in Chinese and English respectively.In case of any ambiguity between the two versions, the Chinese version shallprevail. Investors are advised to read the full text of this semi-annual reportcarefully.
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
Table of Contents
Section I Important Notes, Table of Contents and Interpretations ...... 2
Section II Company Profile and Financial Indicators ...... 6
Section III Management's Discussion and Analysis ...... 9
Section IV Corporate Governance ...... 19
Section V Environment and Social Responsibilities ...... 21
Section VI Important Matters ...... 24
Section VII Changes in Shares and Shareholders ...... 28
Section VIII Preferred Shares ...... 33
Section IX Bonds ...... 34
Section X Financial Report ...... 35
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
List of Reference DocumentsI. Original of the semi-annual report 2023 bearing the signature of the Company's legal representative.II. Financial statements signed and sealed by the Company's legal representative, chief accountant (General Manager), CFO andhead of the accounting department (accounting officer).III. The originals of all the Company's documents and announcements that have been publicly disclosed on the designated mediaduring the reporting period.IV. Place of inspection: Shenzhen Stock Exchange, the office of the Company's Board of Directors.
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
Interpretation
| Item of interpretation | Refers to | Content of interpretation |
| Company, the Company, Shenzhen Nanshan Power, listed company | Refers to | Shenzhen Nanshan Power Co., Ltd. |
| New Power Company | Refers to | Shenzhen New Power Industrial Co., Ltd. |
| Shen Nan Dian Zhongshan Company, Zhongshan Nanlang Power Plant | Refers to | Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. |
| Shen Nan Dian Engineering Company | Refers to | Shenzhen Shennandian Turbine Engineering Technology Co., Ltd. |
| Shen Nan Dian Environment Protection Company | Refers to | Shenzhen Shen Nan Dian Environment Protection Co., Ltd. |
| Server Company | Refers to | Shenzhen Server Petrochemical Supplying Co., Ltd. |
| Singapore Company | Refers to | Shen Nan Energy (Singapore) Co., Ltd. |
| Xindesheng Company | Refers to | Hong Kong Xingdesheng Co., Ltd. |
| Shenzhen Nanshan Power Warehousing Company | Refers to | Zhongshan Shen Nan Dian Warehousing Co., Ltd. |
| Nanshan Thermal Power Station | Refers to | Nanshan Thermal Power Station of Shenzhen Nanshan Power Co., Ltd. |
| RMB yuan, RMB ten thousand yuan, and RMB one hundred million yuan | Refers to | Currency units are RMB yuan, RMB ten thousand yuan, RMB one hundred million yuan, except for the currency units otherwise expressed. |
| Reporting period | Refers to | From January 1, 2023 to June 30, 2023 |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
Section II Company Profile and Financial IndicatorsI. Company profile
| Stock name | Shen Nan Dian A, Shen Nan Dian B | Stock code | 000037、200037 |
| Stock exchange where the Company's stocks are listed | Shenzhen Stock Exchange | ||
| Chinese name of the Company | Shenzhen Nanshan Power Co., Ltd. | ||
| Chinese abbreviation of the Company (if any) | Shen Nan Dian | ||
| Foreign name of the Company (if any) | Shenzhen Nanshan Power Co., Ltd. | ||
| Legal representative of the Company | Kong Guoliang | ||
II. Contact person and contact information
| Secretary of the Board of Directors | Securities affairs representative | |
| Name | Zhou Yi | |
| Contact address | 16th and 17th Floor, Hantang Building, Overseas Chinese Town, Nanshan District, Shenzhen City, Guangdong Province | |
| Telephone | 0755-26003611 | |
| Fax | 0755-26003684 | |
| investor@nspower.com.cn |
III. Other information
1. Contact information of the Company
Whether the Company's registered address, office address, postal code, website, e-mail address, etc. have changed during thereporting period? Applicable ? Not applicableThe Company's registered address, office address and postal code, website and e-mail address have not changed during thereporting period. For details, please refer to the 2022 Annual Report.
2. Place of information disclosure and provision
Whether the place of information disclosure and provision has changed during the reporting period? Applicable ? Not applicableThe stock exchange website and the name and URL of the media where the Company discloses its semi-annual report, and theplace of provision of the Company's semi-annual report have not changed during the reporting period. For details, please refer tothe 2022 Annual Report.
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
3. Other relevant information
Whether other relevant information has changed in the reporting period? Applicable ? Not applicable
IV. Key accounting data and financial indicators
Whether it has retroactive adjustment or re-statement on previous accounting data or not? Yes ? No
| The reporting period | Same period last year | Changes YoY | |
| Operating revenue (RMB) | 271,268,185.05 | 229,243,542.07 | 18.33% |
| Net profit attributable to the shareholders of listed company (RMB) | -37,240,739.56 | -94,098,149.09 | 60.42% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring profit or loss (RMB) | -54,877,330.63 | -127,505,554.48 | 56.96% |
| Net cash flows from operating activities (RMB) | -57,016,489.54 | 200,588,083.30 | -128.42% |
| Basic earnings per share (RMB/share) | -0.0618 | -0.1561 | 60.41% |
| Diluted earnings per share (RMB/share) | -0.0618 | -0.1561 | 60.41% |
| Weighted average rate of return on net assets | -2.59% | -6.00% | Increasing by 3.41% |
| At the end of the reporting period | At the end of last year | Change compared to the end of the previous year. | |
| Total assets (RMB) | 1,982,518,782.62 | 2,606,216,345.99 | -23.93% |
| Net assets attributable to shareholders of the listed company (RMB) | 1,418,108,591.22 | 1,455,129,894.84 | -2.54% |
V. Differences in accounting data under domestic and foreign accounting standards
1. Differences in net profit and net assets in the financial reports disclosed in accordance with theinternational accounting standards and the Chinese accounting standards? Applicable ? Not applicableDuring the reporting period of the Company, there was no difference in net profit and net assets in financial reports disclosed inaccordance with international accounting standards and Chinese accounting standards
2. Differences in net profit and net assets in financial reports disclosed in accordance with both theinternational accounting standards and Chinese accounting standards
? Applicable ? Not applicableDuring the reporting period of the Company, there was no difference in net profit and net assets in financial reports disclosed inaccordance with the international accounting standards and Chinese accounting standards
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
VI. Non-recurring profit or loss items and amounts?Applicable ? Not applicable
Unit: RMB
| Item | Amount | Description |
| Profit or loss on disposal of non-current assets (including write-off of provision for asset impairment) | 106,021.61 | |
| Government subsidies included in the current profit or loss (except for the government subsidies closely related to the Company's normal business, in line with national policies and regulations, and continuously enjoyed according to a certain standard quota or quantity) | 4,065,271.26 | Mainly apportionment of government subsidies related to assets |
| Profit or loss from changes in fair value arising from holdings of trading financial assets and trading financial liabilities and investment income from disposal of trading financial assets, trading financial liabilities and available-for-sale financial assets, except for the effective hedging business related to the Company's normal business operations | 9,342,507.91 | Mainly wealth management income |
| Other non-operating revenue and expenses other than the above items | 4,993,878.46 | Mainly power outage compensation and insurance claim compensation |
| Less: Affected amount of minority equity (after tax) | 871,088.17 | |
| Total | 17,636,591.07 |
Specific circumstances of other profit or loss items that meet the definition of non-recurring profit or loss:
? Applicable ?Not applicableThe Company had no specific profit or loss items that meet the definition of non-recurring profit or loss.Notes on the definition of the non-recurring profit or loss items listed in the "Interpretive Announcement No. 1 on InformationDisclosure of Companies Issuing Securities to the Public - Non-recurring Profit or Loss" as recurring profit or loss items? Applicable ? Not applicableThe Company had no circumstances of definition of the non-recurring profit or loss items listed in the "Interpretive AnnouncementNo. 1 on Information Disclosure of Companies Issuing Securities to the Public - Non-recurring Profit or Loss" as recurring profitor loss items.
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
Section III Management's Discussion and AnalysisI. Main business engaged in by the Company during the reporting periodAccording to data released by the China Electricity Council, in the first half of 2023, the national electricity consumption ofthe whole society was 4.31 trillion kWh, up 5.0% year-on-year, and the growth rate was 2.1% higher compared to the same periodlast year. The recovery and improvement of national economy in the first half of the year has driven a year-on-year increase in thegrowth rate of electricity consumption. In terms of industries, the electricity consumption of the primary industry was 57.8 billionkWh, up 12.1% year on year; The electricity consumption of the secondary industry was 2,867 billion kWh, up 4.4% year on year.the electricity consumption of the tertiary industry was 763.1 billion kWh, up 9.9% year on year; The domestic electricityconsumption of urban and rural residents was 619.7 billion kWh, up 1.3% year on year. In the first half of the year, the powergeneration output of power plants above designated size in China was 4.17 trillion kWh, up 3.8% year-on-year. Among them, thehydropower generation output of power plants above designated size dropped by 22.9% year-on-year. Insufficient water storage inthe main reservoirs and persistent low precipitation since the beginning of this year, coupled with the factors such as a high base inthe same period of the previous year, have led to a continuous year-on-year decline in hydropower output since the beginning ofthis year, and the decline has expanded, with hydropower output falling by 32.9% and 33.9% year-on-year in May and June,respectively. In the first half of the year, the thermal power and nuclear power generation outputs of power plants abovedesignated size increased by 7.5% and 6.5% year-on-year, respectively Full-scale grid-connected wind power generation outputincreased by 21.2% year-on-year. Coal-fired power output accounted for 58.5% of the total energy output, and coal-fired powerremains the primary source of electricity supply in China. It effectively compensates for the significant decline in hydropoweroutput and fully plays its role in ensuring basic power supply.
The main business of the Company is production and operation of power supply and heat supply, technical consulting andtechnical services related to power plants (stations). At the end of the reporting period, the Company had two wholly-owned andcontrolled gas turbine power plants with a total of five set 9E gas-steam combined cycle generating units with a total installedcapacity of 900,000 kilowatts (including 3×180,000 kilowatts of Nanshan Thermal Power Station and 2×180,000 kilowatts ofZhongshan Nanlang Power Plant). Both gas turbine power plants are located in the electricity load center area of the Pearl RiverDelta, are the main peak-shaving power sources in the region, and are currently in normal production and operation. On February21, 2022, upon the deliberation and approval of the Fifth Interim Meeting of the Ninth Session of the Board of Directors of theCompany, the Company initiated the matter of the shutdown and decommissioning of the two 9E gas turbines of the ZhongshanNanlang Power Plant of Shenzhen Nanshan Thermal Power, and formally submitted an application for shutdown anddecommissioning of the units to the Energy Bureau of Guangdong Province on November 24, 2022. Before obtaining the relevantapprovals and opinions, the Zhongshan Nanlang Power Plant will continue to carry out the electricity generation business, whichwill have no material impact on the current production and operation of the Company and the Zhongshan Nanlang Power Plant forthe time being.
In the first half of 2023, the economic situations at home and abroad were grim. Facing an extraordinarily complex andchallenging environment, the Company diligently implemented the relevant requirements from competent government authoritiesat all levels regarding the security and supply of energy and electricity, took effective and efficient measures, and spared no effortto ensure the safety and reliability of power generation, thus providing robust electricity assurance for the development of theeconomy and society. From January to June 2023, the two subordinate power generation enterprises of the Company generated atotal of 299 million kWh of actual on-grid power and 595 million kWh of settlement contract power. The respective powergeneration outputs of the Company's subordinate enterprises are as follows: Nanshan Thermal Power Plant generated 255 millionkWh of on-grid power and 460 million kWh of settlement contract power. Zhongshan Nanlang Power Plant generated 44 millionkWh of actual on-grid power, and 135 million kWh of settlement contract power.
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
The Company shall comply with the disclosure requirements for "power supply industry" as set out in "Self-Regulation andSupervision Guidelines No. 3 for Shenzhen Stock Exchange-Listed Companies - Industry Information Disclosure ".
II. Core competitiveness analysis
In recent years, the Company's main business has been facing increasing difficulties and challenges due to themacroeconomic situation and common issues in the gas turbine power generation industry. However, the fundamental corecompetitiveness formed over more than thirty years of operation and development, along with strong support from the majorshareholders, innovative management practices adopted by the Company's Board of Directors and management team, have laid anecessary foundation for the Company's ongoing operations and pursuit of transformative development. During the reportingperiod, the Company adopted "activating stocks, introducing increments, transforming development" as its business objectives,and adhered to the management principles of being regulated, scientific, pragmatic, efficient and impartial, diligently carried outvarious work, and made every effort to promote the high-quality development of the Company. The Company's corecompetitiveness has been further consolidated and improved.
1. A management culture of hard work and innovation. The Company has a group of operation and management talents withinnovative consciousness and hard working spirit. By deepening the human resources reform and building a performance-orientedperformance assessment and incentive mechanism, the Company advocates and fosters a management culture of unity, hard work,innovation and progressiveness throughout the Company, In addition, the Company attaches great importance to and vigorouslypromotes the construction of its institutional, management, and compliance systems. It adheres to a standardized management thatis law-abiding, regulation-compliant scientific, rigorous, efficient and orderly. Through refined and standardized managementguidance, the Company has established a solid foundation for deeply tapping into internal potential and actively seeking externalopportunities.
2. Professional and enterprising technical talents. With over thirty years of dedicated efforts and the influence in the gasturbine power generation industry, the company has attracted and cultivated a group of technical experts and professionals in thegas turbine industry, and has accumulated rich experiences in the construction and operation management of gas turbine powerplants. In order to align with the market situation of deepened and progressive power marketization reform in GuangdongProvince , the company has established a professional power marketing team, carried out in-depth research on power tradingstrategies, explored the construction of power marketing mathematical models, and accumulated a wealth of experience in powermarketing, which has laid a solid foundation for the company to participate in the construction of a new type of power market andto integrate itself into the wave of power marketization reform. In addition, Shen Nan Dian Engineering Company hascumulatively provided dozens of domestic and overseas gas turbine power stations with professional services such as technicalconsulting, commissioning and operation guarantee; The Company's training center has successively undertaken the technicalpersonnel training business for dozens of domestic and foreign power plants, has become a well-known professional talent trainingbase in in the domestic gas turbine industry, and has established a good reputation and professional brand image in the sameindustry.
3. Professional technical expertise that keeps pace with the times. The Company has a number of independent utility modelpatents and software copyrights, has jointly drafted and compiled one national standard, and has a number of invention patents thatunder review by the State Intellectual Property Office. It has been recognized as a national high-tech enterprise on December 23,2021. The Company's research and innovation work has been continuously carried out and has received unanimous recognitionfrom society. During the reporting period, the Company filed to the State Intellectual Property Office a total of 7 utility modelpatents and 1 invention patent applications, of which 1 utility model patent has been granted. The Company has been granted atotal of 39 patents (including 4 invention patents) and 8 software copyrights, which has greatly enhanced the company's brandimage and industry competitiveness.
4. Rich experiences in industrial exploration. The Company has fully leveraged its own advantages, accumulated experiencein the construction and operation of new energy industry projects such as electrochemical energy storage and photovoltaic, and
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
actively explored technological projects such as virtual power station platforms. Through technical transformation, the company'ssubordinate Nanshan Thermal Power Station has filled the gap in the application of energy storage systems in the field of "blackstart" of 9E-grade units in China. Through the successful operation of black start projects, the preliminary work of independentenergy storage power stations and the construction and operation of photovoltaic projects, the Company has accumulated certainexperience in the preliminary preparation, construction, commissioning, operation and maintenance of energy storage projects, andtrained a group of professional talents. In addition, the company's talent reserves and technological advantages in the traditionalpower industry have laid a solid foundation for the Company to continuously tap the existing potential and rely on the powermarket and its technical strength to enter the field of new energy services.
5. Leading environmental protection level. The Company's subordinate power plants all use gas-fired power generation units,adopting natural gas as fuel, and the CO2 emission in the flue gas is about 42% of that of the coal-fired power plants, providingstrong support for the national "double carbon" (carbon peaking and carbon neutrality) construction, According to therequirements of the "2018 'Shenzhen Blue' Sustainable Action Plan" of the Shenzhen Municipal People's Government, theCompany has fully completed the "Shenzhen Blue" transformation of #3, #10 and #1 gas turbines of Nanshan Thermal PowerPlant. After the transformation, the nitrogen oxides emissions of each unit have been reduced to less than 15mg/m3, reaching theworld's most advanced level. Nanshan Thermal Power Plant was also selected as the best power plant of the Top Plant Award byPower Magazine, the most authoritative magazine in the global power industry, founded in 1882.
III. Main business analysis
OverviewYear-on-year changes in key financial data
Unit: RMB
| The reporting period | Same period last year | Year-on-year change | Reasons for changes | |
| Operating revenue | 271,268,185.05 | 229,243,542.07 | 18.33% | Mainly due to the increase in power generation output and the increase in electricity bill settlement revenue |
| Operating costs | 285,367,929.90 | 282,486,432.21 | 1.02% | |
| Selling and distribution expenses | 897,707.82 | 100.00% | Mainly due to the growth of electricity sales business and the increase in expenses | |
| G&A expenses | 34,513,202.72 | 43,777,644.68 | -21.16% | Mainly due to reducing and eliminating losses, and strengthening cost control |
| Financial expenses | 6,730,365.12 | 16,729,716.11 | -59.77% | Mainly due to the decrease in financing scale and the decrease in financing cost |
| Income tax expenses | 479.55 | |||
| R&D input | 13,297,926.31 | 17,072,589.13 | -22.11% | Mainly due to the cyclical impact of R&D project settlement |
| Net cash flow from operating activities | -57,016,489.54 | 200,588,083.30 | -128.42% | Mainly due to VAT credit refund received |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| in the same period of the previous year, and no such cash inflow in the current year | ||||
| Net cash flow from investing activities | 262,106,770.11 | -730,434,844.43 | 135.88% | Mainly due to the increase in cash inflow from investing activities as a result of recovery of wealth management products in the current period and the decrease in payments for investment in wealth management products in the same period |
| Net cash flow from financing activities | -592,949,390.25 | 309,964,533.04 | -291.30% | Mainly due to the decrease in financing scale |
| Net increase in cash and cash equivalents | -387,622,035.71 | -219,586,524.40 | -76.52% | Mainly due to the significant decrease in net cash flow from financing activities as compared to the same period of the previous year |
Major changes in the Company's profit composition or profit sources during the reporting period? Applicable ? Not applicableThere were no major changes in the profit composition or profit source of the Company during the reporting period.Composition of operating revenue
Unit: RMB
| The reporting period | Same period last year | Year-on-year change | |||
| Amount | Percentage of operating revenue | Amount | Percentage of operating revenue | ||
| Total operating revenue | 271,268,185.05 | 100% | 229,243,542.07 | 100% | 18.33% |
| By industry | |||||
| Energy industry | 260,794,861.20 | 96.14% | 205,738,094.27 | 89.75% | 26.76% |
| Engineering service | 9,833,593.03 | 3.63% | 22,901,068.56 | 9.99% | -57.06% |
| Others | 639,730.82 | 0.24% | 604,379.24 | 0.26% | 5.85% |
| By product | |||||
| Electricity sales | 260,794,861.20 | 96.14% | 205,738,094.27 | 89.75% | 26.76% |
| Engineering service | 9,833,593.03 | 3.63% | 22,901,068.56 | 9.99% | -57.06% |
| Others | 639,730.82 | 0.24% | 604,379.24 | 0.26% | 5.85% |
| By region | |||||
| Domestic | 271,268,185.05 | 100% | 229,243,542.07 | 100% | 18.33% |
Industries, products or regions that account for more than 10% of the Company's operating revenue or operating profit? Applicable ? Not applicable
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Unit: RMB
| Operating revenue | Operating costs | Gross profit margin | Year-on-year change in operating revenue | Year-on-year change in operating costs | Year-on-year change in gross profit margin | |
| By industry | ||||||
| Energy industry | 260,794,861.20 | 281,263,633.98 | -7.85% | 26.76% | 4.64% | 22.80% |
| By product | ||||||
| Electricity sales | 260,794,861.20 | 281,263,633.98 | -7.85% | 26.76% | 4.64% | 22.80% |
| By region | ||||||
| Domestic | 271,268,185.05 | 285,367,929.90 | -5.20% | 18.33% | 1.02% | 18.03% |
Under the circumstances that the calculation method of the Company's main business data is adjusted during the reporting period,the Company's main business data for the latest period is adjusted according to the calculation method at the end of the reportingperiod? Applicable ? Not applicableIV. Non-primary business analysis? Applicable ? Not applicable
Unit: RMB
| Amount | Percentage of total profit | Formation reasons | Whether it is sustainable | |
| Investment income | 19,725,870.53 | -46.21% | Mainly wealth management income and shareholding companies' equity investment income (including dividends) | Shareholding companies' equity investment income (including dividends) is sustainable |
| Non-operating revenue | 4,994,213.17 | -11.70% | Mainly power outage compensation | No |
| Non-operating expenses | 6,208.32 | -0.01% | Non-current asset retirement losses, etc. | No |
V. Analysis of assets and liabilities
1. Major changes in asset composition
Unit: RMB
| At the end of the reporting period | At the end of last year | Increase/decrease in percentage | Explanation of significant changes | |||
| Amount | Percentage of total assets | Amount | Percentage of total assets | |||
| Cash and cash equivalents | 293,314,664.92 | 14.80% | 675,496,266.40 | 25.92% | -11.12% | Mainly due to the increase in debt repayments |
| Accounts receivable | 144,831,860.55 | 7.31% | 135,833,492.64 | 5.21% | 2.10% | |
| Contract assets | 89,848.39 | 0.00% | 217,009.58 | 0.01% | -0.01% | |
| Inventories | 84,996,198.57 | 4.29% | 85,279,298.35 | 3.27% | 1.02% | |
| Investment | 1,748,955.40 | 0.09% | 1,833,344.20 | 0.07% | 0.02% | |
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| properties | ||||||
| Long-term equity investments | 83,924,704.73 | 4.23% | 83,496,098.24 | 3.20% | 1.03% | |
| Fixed assets | 578,426,240.23 | 29.18% | 591,290,204.31 | 22.69% | 6.49% | |
| Projects under construction | 6,222,095.21 | 0.31% | 4,861,062.16 | 0.19% | 0.12% | |
| Right-of-use assets | 4,987,282.16 | 0.25% | 7,707,617.90 | 0.30% | -0.05% | |
| Short-term borrowings | 226,612,655.38 | 11.43% | 879,957,857.44 | 33.76% | -22.33% | Mainly due to the decrease in financing scale |
| Contract liabilities | 0.00 | 0.00% | 0.00 | 0.00% | 0.00% | |
| Long-term borrowings | 105,274,084.45 | 5.31% | 28,019,758.68 | 1.08% | 4.23% | |
| Lease liabilities | 0.00% | 2,262,160.03 | 0.09% | -0.09% | ||
| Trading financial assets | 145,000,000.00 | 7.31% | 440,013,571.10 | 16.88% | -9.57% | Mainly due to the decrease in the liquidity management scale of idle funds |
| Other current assets | 238,256,408.74 | 12.02% | 188,248,840.44 | 7.22% | 4.80% |
2. Main overseas assets
? Applicable ? Not applicable
3. Assets and liabilities measured at fair value
? Applicable ? Not applicable
Unit: RMB
| Item | Opening balance | Profit or loss from changes in fair value in the current period | Cumulative changes in fair value included in equity | Impairment provision in the current period | Amount purchased in the current period | Amount sold in the current period | Other changes | Ending balance |
| Financial assets | ||||||||
| 1. Trading financial assets (excluding derivative financial assets) | 440,013,571.10 | 295,013,571.10 | 145,000,000.00 | |||||
| 2. | 0.00 | |||||||
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| Derivative financial assets | ||||||||
| 3. Other debt investments | 0.00 | |||||||
| 4. Other investments in equity instruments | 300,615,000.00 | 300,615,000.00 | ||||||
| Sub-total of financial assets | 740,628,571.10 | 295,013,571.10 | 445,615,000.00 | |||||
| Total of the above | 740,628,571.10 | 295,013,571.10 | 445,615,000.00 | |||||
| Financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Other changesNoneWhether there were significant changes in the measurement attributes of the Company's major assets during the reporting period? Yes ? No
4. Restrictions on asset rights as of the end of the reporting period
| Item | Ending balance (RMB) | Balance at end of previous year (RMB) |
| Bank acceptance bill margin | 27,474,594.34 | 27,474,594.34 |
| Performance bond | 5,440,434.23 | |
| Total | 32,915,028.57 | 27,474,594.34 |
VI. Investment status analysis
1. Overall situation
?Applicable ? Not applicable
| Investment amount during the reporting period (RMB) | Investment amount in the same period of previous year (RMB) | Range of change |
| 0.00 | 100,000,000.00 | -100.00% |
2. Major equity investments acquired during the reporting period
? Applicable ?Not applicable
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
3. Major non-equity investments in progress during the reporting period
? Applicable ? Not applicable
4. Investment in the financial assets
(1) Securities investment
? Applicable ? Not applicableThe Company had no securities investment during the reporting period.
(2) Derivatives investment
? Applicable ? Not applicableThe Company had no derivative investment during the reporting period.
5. Use of funds raised
? Applicable ? Not applicableThe Company had no use of funds raised during the reporting period.VII. Sale of major assets and equity
1. Sales of major assets
? Applicable ? Not applicableThe Company did not sell major assets during the reporting period.
2. Sale of major equity
? Applicable ? Not applicableVIII. Analysis of major holding and shareholding companies? Applicable ? Not applicableMajor subsidiaries and shareholding companies with an impact of 10% or more on the Company's net profit
Unit: RMB
| Company name | Company type | Main business | Registered capital | Total assets | Net assets | Operating revenue | Operation profit | Net profit |
| Shenzhen New Power Industrial Co., Ltd. | Subsidiaries | Technology development of waste heat utilization (excluding restricted projects): power generation by waste heat utilization; gas turbine power generation. | RMB113.85 million | 124,581,816.73 | -497,023.45 | 94,131,560.49 | -27,851,853.46 | -27,851,853.46 |
| Shen Nan | Subsi | Gas turbine power | RMB74 | 258,720,30 | - | 43,549,971. | - | - |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| Dian (Zhongshan) Electric Power Co., Ltd. | diaries | generation, waste heat power generation, power supply and heat supply (excluding heat supply pipe networks), wharves, oil depots (excluding refined oil, hazardous chemicals and flammable and explosive products) and lease of power equipment and facilities; land use rights lease; non-residential real estate lease. | 6.8 million | 6.42 | 524,787,260.65 | 34 | 28,135,239.81 | 23,988,910.88 |
Information on acquisition and disposal of subsidiaries during the reporting period? Applicable ? Not applicableNotes to main holding and shareholding companiesNot applicable
IX. Structured entities controlled by the Company
? Applicable ? Not applicable
X. Risks faced by the Company and countermeasures
1. Main business: In the first half of 2023, the Guangdong Province continued to implement the trial operation of the spotmarket of electricity in the south (starting with Guangdong). In a situation where the natural gas prices have not decreasedsignificantly compared to the same period last year, the two subordinate power plants of the Company were not only required tofulfill their social responsibility of ensuring power supply with a high political stance, but also faced significant operationalpressure brought about by the inversion of power generation costs and electricity selling prices. In the face of the aforementionedunfavorable policy and industry situations, in order to minimize the losses of the main business of electric power, the Company, onthe one hand, has relied on the Gas Turbine Special Committee, the natural gas Power Generation Supply Chain SpecialCommittee and other industry associations, to actively advocate to the relevant government departments for the implementation ofthe gas-electricity price linkage mechanism and the promotion of policies such as capacity compensation and dual pricing system,according to relevant documents as well as the actual operation situation. On the other hand, the two subordinate power plantshave continued to strengthen the overall planning of equipment management and economic operation, striving to enhance themarginal contribution level of the power generation business.
2. Safety management: in the context of a market-oriented electricity generation model, power plants will encounter moreflexible dispatching methods and stricter assessment policies, which places higher demands on the operation and maintenance ofthe aging power generation equipment. By formulating scientific and reasonable maintenance and technical transformation plans,and allocating corresponding funds and technical resources, the Company will continuously improve the maintenance andgovernance level of equipment, implement the main responsibility for work safety, and ensure the safe and stable operation ofproduction facilities. At the same time, it will further strengthen training and emergency response capacity building to achieve"five in place", namely, putting work safety responsibilities, management, investment, training and emergency rescue in place, to
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
ensure that no human-induced work safety accidents occur in the company system, and continue to play the supporting role of thekey peak-shaving power point.
3. Fuel procurement: in the first half of 2023, demand for natural gas was weak and supply was abundant. Meanwhile,domestic natural gas prices weakened due to factors such as the downward trend of international natural gas prices, and theCompany's natural gas purchase price was slightly lower than that of the same period last year. Taking into account factors such asincreased demand during the traditional peak power generation period and winter heating demand reserves, the Company's naturalgas purchase price is expected to remain at the current level or slightly higher in the second half of 2023. Under the electricity spottrading rules, the estimated power generation output cannot match the actual power generation output. Since the natural gaspurchase contract must be signed in advance, and the contracted gas volume has been determined at the time of signing, it isdifficult to match the contracted natural gas volume with the actual extracted volume. If the gas cannot be extracted as agreed dueto factors such as electricity spot trading in a later period, it may lead to related risks such as default of under-extraction of contractvolume or an increase in incremental gas prices. The Company will continue to optimize the upstream and downstreampartnerships, and exert its best efforts to reduce natural gas procurement costs while ensuring to meet the gas demand for powergeneration.
4. Land of Nanshan Thermal Power Station: according to the announcement, 2023 Urban Renewal and Land Preparation Planof Shenzhen City and the relevant content of its exhibits, issued by Shenzhen Municipal Bureau of Planning and NaturalResources, the 2023 Urban Renewal and Land Preparation Plan of Shenzhen City still includes the land acquisition and reserve aswell as related content of the Nanshan Thermal Power Station, a subordinate unit of the Company. The Company will closelymaintain communication with the relevant functional departments of Shenzhen and Nanshan District and the Shenzhen QianhaiAdministration Bureau, actively follow up on the progress of the government's relevant land preparation plan, conduct diligentstudies to formulate response strategies and work programs, and make every effort to safeguard the legitimate rights and interestsof the listed company and all shareholders.
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
Section IV Corporate GovernanceI. Relevant information of the annual general meeting and extraordinary general meetingheld during the reporting period
1. General meetings during the reporting period
| Session | Meeting type | Investor attendance ratio | Date of convening | Date of disclosure | Resolution of the meeting |
| The First Extraordinary General Meeting in 2023 | Extraordinary general meeting | 38.36% | March 23, 2023 | March 23, 2023 | For details, please refer to the Announcement on the Resolution of the First Extraordinary General Meeting in 2023 (Announcement No.: 2023-011) disclosed by the Company on March 23, 2023 in the Securities Times and CNINF. |
| 2022 Annual General Meeting | Annual general meeting | 38.40% | May 05, 2023 | May 05, 2023 | For details, please refer to the Announcement on the Resolution of the 2022 Annual General Meeting (Announcement No.: 2023-022) disclosed by the Company on May 5, 2023 in the Securities Times and CNINF. |
2. The preferred shareholders whose voting rights have been restored requested to convene anextraordinary general meeting.
? Applicable ? Not applicableII. Changes in the Company's directors, supervisors and senior officers? Applicable ? Not applicable
| Name | Position | Change type | Date | Reason |
| Zhai Baojun | Chairman of the Board of Supervisors | Elected | March 23, 2023 | |
| Ye Qiliang | Chairman of the Board of Supervisors | Resigned | February 27, 2023 | Retired |
| Zhang Jie | Deputy General Manager | Resigned | March 20, 2023 | Retired |
III. Profit distribution and conversion of capital reserves into share capital during thereporting period? Applicable ? Not applicableThe Company has planned not to distribute cash dividends, bonus shares or convert capital reserves into share capital in the halfyear.
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IV. Implementation of the Company's equity incentive plans, employee stock ownershipplans or other employee incentive measures? Applicable ? Not applicableDuring the reporting period, the Company had no equity incentive plan, employee stock ownership plan or other employeeincentive measures and their implementation.
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
Section V Environment and Social ResponsibilitiesI. Major environmental protection issuesWhether the listed company and its subsidiaries are among the key pollutant discharge entities announced by the environmentalprotection department? Yes ? NoEnvironmental protection related policies and industry standards
The Company operates in the Sub-category 4411 thermal power generation industry as defined in the Industrial Classificationfor National Economic Activities (GB/T 4754-2017), and currently implements the Emission Standard of Air Pollutants forThermal Power Plants (GB-13223-2011). Meanwhile, its affiliate, Nanshan Thermal Power Station, strictly controls nitrogen oxideemissions in accordance with the relevant requirements of the 2018 "Shenzhen Blue" Sustainable Action Plan.Environmental protection administrative licensingThe Company's affiliate, Nanshan Thermal Power Station, has obtained the pollutant discharge license issued by NanshanAdministration Bureau of the Bureau of Ecology and Environment of Shenzhen City with the license number:
91440300764983799T001P. The Company's affiliate, Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. has obtained thepollutant discharge license issued by the Bureau of Ecology and Environment of Zhongshan City, license number:
914420007564567614001P.
| Name of the Company or subsidiaries | Type of main pollutants and particular pollutants | Name of main pollutants and particular pollutants | Emission method | Number of emission outlets | Distribution of emission outlets | Emission concentration/intensity | Executive pollutant discharge standards | Total emissions | Approved total emissions | Exceeding emission standards |
| Shenzhen Nanshan Power Co., Ltd. | Nitrogen oxides | Nitrogen oxides | Centralized emission through boiler stack | 2 | In the plant site of Nanshan Thermal Power Station | <15 mg/m? | "Shenzhen Blue" emission standard < 15 mg/m? | 22 tons | 457.5 tons/year | 0 |
| Shenzhen New Power Industrial Co., Ltd. | Nitrogen oxides | Nitrogen oxides | Centralized emission through boiler stack | 1 | In the plant site of Nanshan Thermal Power Station | <15 mg/m? | "Shenzhen Blue" emission standard < 15 mg/m? | 7.18 tons | 228.75 tons/year | 0 |
| Shen Nan Dian (Zhongshan) Electric | Nitrogen oxides | Nitrogen oxides | Centralized emission through boiler stack | 2 | Within Zhongshan Nanlang Power Plant | <50 mg/m? | GB13223 | 6.7523 tons | 803.06 tons/year | 0 |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
PowerCo., Ltd.
Treatment of pollutantsThe Company and its controlling subsidiaries have 5 sets of 9E units, Shenzhen Nanshan Power Co., Ltd. has 2 sets of 9Eunits and Shenzhen New Power Industrial Co., Ltd. has 1 set of 9E units, all with GE DLN1.0 + low nitrogen combustion system.Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. has two sets of 9E units with GE DLN1.0 low nitrogen combustion system.
During the reporting period, the Company and its controlling subsidiaries strictly complied with the national laws andregulations on environmental protection, and all the pollutants emitted met the national emission standards. There was noenvironmental pollution accident, nor was there any punishment imposed by the relevant departments due to major environmentalprotection issues.Emergency plan for unexpected environmental events
The emergency plan for environmental emergencies has been filed with the Department of Ecology and Environment ofGuangdong Province and corresponding municipal environmental protection bureaus.Investment in environmental governance and protection and relevant information on payment of environmental protection tax
The Company attaches great importance to the environmental protection work, and strengthens on-site management bycarrying out special work such as investigation of environmental risks and standardized management of hazardous waste. Inaddition, the Company has continuously increased its investment in the maintenance of environmental protection facilities,continuously improved and perfected the environmental protection infrastructure, and continuously improved the level of pollutionprevention and control.
The Company has paid environmental protection tax in strict accordance with the Chairman Order No. 61 for theEnvironmental Protection Tax Law of the People's Republic of China and other relevant laws and regulations.Environmental self-monitoring plan
The Company has prepared environmental self-monitoring plan which has been reviewed and approved by competentenvironmental protection department; it has timely disclosed the monitoring data on the website of the environmental protectiondepartment.Administrative penalties imposed due to environmental problems during the reporting periodNoneOther environmental information that should be disclosedNoneMeasures taken to reduce its carbon emissions during the reporting period and their effects? Applicable ? Not applicable
During the reporting period, the Company’s affiliated power stations continuously improved the efficiency of unit andreduced carbon emissions by taking technical transformation measures such as technical transformation of unit condenser.Other information related to environmental protectionNoneThe Company shall comply with the disclosure requirements for "power supply industry" as set out in "Self-Regulation andSupervision Guidelines No. 3 for Shenzhen Stock Exchange-Listed Companies - Industry Information Disclosure ".
Environmental protection related accidents occurred in the listed company
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None
II. Undertaking of social responsibilities
In 1H23, despite of significant challenges in production, operation, and management it faced, the Company bravely assumedsocial responsibility, actively ensured electricity supply against of the inversion of power generation costs and sales prices, andconscientiously fulfilled its social responsibilities within its capabilities. In terms of work safety, the Company strictly compliedwith the Law of the People's Republic of China on Work Safety and other relevant laws and regulations. In accordance with theprinciple of "common responsibility among the party and administration teams, dual responsibilities for one position, jointmanagement and involvement, and accountability for dereliction of duty", the Company took multiple measures to strengthensafety management, allocated safety responsibilities to all levels layer by layer, and continued to maintain the "five-without" safetygoals. In terms of environmental protection, the Company strictly abided by the national and local environmental protection lawsand regulations, always adhered to the concept of clean power generation and recyclable economy development, and allenvironmental protection work has been effectively implemented. The environmental protection emission standards have been met,and no environmental pollution accidents have occurred. In terms of caring assistance, the Company actively implemented theconsumption poverty alleviation policy of Shenzhen, and participated in consumption poverty alleviation totaling an amount ofRMB72,000 during the reporting period, and actively fulfilled social responsibilities within its capablities.
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
Section VI Important Matters
I. Commitments made by the Company's actual controller, shareholders, related parties,acquirers, the Company and other related parties that have been fulfilled within thereporting period and those that have not been fulfilled within the time limit as of the end ofthe reporting period
? Applicable ? Not applicableDuring the reporting period, there were no commitments that were made by the actual controllers, shareholders, related parties,acquirers, and other related parties of the Company to be fulfilled during the reporting period but failed to be fulfilled as of the endof the reporting period.II. Non-operational occupation of funds by the controlling shareholders and other relatedparties of the listed company
? Applicable ? Not applicableDuring the reporting period, there were no non-operational funds occupied by the controlling shareholders and other related partiesfor the listed company.III. Illegal external guarantees
? Applicable ? Not applicableThe Company had no illegal external guarantee during the reporting period.
IV. Appointment and dismissal of accounting firmsWhether the semi-annual report has been audited.? Yes ? NoThe Company's semi-annual report has not been audited.
V. Explanation of the Board of Directors and the Board of Supervisors on the "modifiedreport" of the accounting firm during the Reporting Period? Applicable ? Not applicable
VI. Explanation of the Board of Directors on the "modified report" of the previous year
? Applicable ? Not applicableVII. Bankruptcy and restructuring related matters
? Applicable ? Not applicableDuring the reporting period, the Company had no bankruptcy restructuring related matters.
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VIII. Litigation
Major litigation and arbitration matters? Applicable ? Not applicableDuring the reporting period, the Company had no major litigation or arbitration matters.Other matters of litigation? Applicable ? Not applicableIX. Penalties and rectification
? Applicable ? Not applicableX. Integrity status of the Company and its controlling shareholders and actual controller? Applicable? Not applicableDuring the reporting period, the Company did not fail to comply with effective court judgments or incur significant debts that werenot repaid upon maturity, and its integrity was in good condition. During the reporting period, the Company had no controllingshareholder or actual controller.
XI. Major related party transactions
1. Related party transactions related to daily operations
? Applicable ? Not applicableDuring the reporting period, the Company had no related party transactions related to daily operations.
2. Related party transactions arising from the acquisition and sale of assets or equity? Applicable ? Not applicableDuring the reporting period, the Company had no related party transactions arising from the acquisition or sale of assets or equity.
3. Related party transactions arising from joint foreign investment
? Applicable ? Not applicableDuring the reporting period, the Company had no related party transactions arising from joint external investment.
4. Related claims and debts
? Applicable ?Not applicableDuring the reporting period, the Company had no related debt transactions.
5. Information on transactions with finance companies with association
? Applicable ? Not applicableThere was no deposit, loan, credit or other financial business between the Company and the finance companies with associationand their related parties.
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6. Transactions between the Company's holding finance companies and its related parties? Applicable ? Not applicableThere was no deposit, loan, credit or other financial business between the Company's holding finance companies and its relatedparties.
7. Other major related transactions
? Applicable ? Not applicableThe Company had no other major related transactions during the reporting period.XII. Major contracts and their performance
1. Custody, contracting and lease matters
(1) Custody
? Applicable ? Not applicableDuring the reporting period, the Company had nothing under custody.
(2) Contracting
? Applicable ? Not applicableDuring the reporting period, the Company had no contracting.
(3) Lease
? Applicable ? Not applicableDuring the reporting period, the company had no leases.
2. Significant guarantees
? Applicable ? Not applicableDuring the reporting period, the Company had no significant guarantees.
3. Entrusted wealth management
? Applicable ? Not applicable
Unit: RMB10,000
| Specific type | Sources of funds for entrusted wealth management | Amount of entrusted wealth management | Undue balance | Delinquent uncollected amount | Delinquent uncollected amount of financial assets with provision for impairment |
| Bank wealth management products | Self-owned fund | 21,001.37 | 0 | 0 | 0 |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| Total | 21,001.37 | 0 | 0 | 0 |
Specific conditions of high-risk entrusted wealth management with significant single amount, low safety and poor liquidity? Applicable ? Not applicableEntrusted wealth management that may fail to recover the principal or other circumstances that may lead to impairment? Applicable ? Not applicable
4. Other major contracts
? Applicable ? Not applicableXIII. Explanation of other major matters?Applicable ? Not applicableNanshan Thermal Power Station's land-related matters: in Jun. 2023, the Company learned the Notice of the ShenzhenPlanning and Natural Resources Bureau on Issuing the 2023 Urban Renewal and Land Preparation Plan for Shenzhen on thewebsite of the Shenzhen Bureau of Planning and Natural Resources. According to the relevant contents of the attached table, theland preparation project of Qianhai Cooperation Zone in 2023 still includes the land purchase and storage of the Company'saffiliated Nanshan Thermal Power Station and other related contents. (For details, please refer to the Announcement on theIssuance of the 2023 Urban Renewal and Land Preparation Plan for Shenzhen by the Shenzhen Bureau of Planning and NaturalResources (Announcement No.: 2023-023) disclosed by the Company in the Securities Times and CNINF.)
Except for the above matters, there was no progress or change in the refundable funds of the Company's "Project TechnicalTransformation Benefit Fund" during the reporting period.
XIV. Major matters of the Company's subsidiaries
? Applicable ? Not applicable
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
Section VII Changes in Shares and ShareholdersI. Changes in shares
1. Changes in shares
Unit: share
| Before the change | Increase or decrease in this change (+, -) | After the change | |||||||
| Quantity | Ratio | New shares issued | Bonus issue | Conversion of provident fund into shares | Others | Sub-total | Quantity | Ratio | |
| I. Shares with restrictive conditions for sales | 12,994 | 0.0022% | 4,331 | 4,331 | 17,325 | 0.0029% | |||
| 1. State-owned shares | |||||||||
| 2. Shares held by the state-owned legal persons | |||||||||
| 3. Other domestic holdings | 12,994 | 0.0022% | 4,331 | 4,331 | 17,325 | 0.0029% | |||
| Including: shares held by domestic legal persons | |||||||||
| Shares held by domestic natural persons | 12,994 | 0.0022% | 4,331 | 4,331 | 17,325 | 0.0029% | |||
| 4. Foreign shareholding | |||||||||
| Including: shares held by overseas legal persons | |||||||||
| Shares held by overseas natural persons | |||||||||
| II. Shares without restrictive conditions for sales | 602,749,602 | 99.9978% | -4,331 | -4,331 | 602,745,271 | 99.9971% | |||
| 1. RMB ordinary shares | 338,895,156 | 56.2236% | -4,331 | -4,331 | 338,890,825 | 56.2229% | |||
| 2. Foreign shares listed domestically | 263,854,446 | 43.7742% | 263,854,446 | 43.7742% | |||||
| 3. Foreign shares listed overseas | |||||||||
| 4. Others | |||||||||
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| III. Total number of shares | 602,762,596 | 100.00% | 0 | 0 | 602,762,596 | 100.00% |
Reasons for changes in shares? Applicable ? Not applicableOn March 20, 2023, Ms. Zhang Jie resigned from the position of the Company's Deputy General Manager due to reaching thestatutory retirement age, and all the 17,325 A-shares of the Company held by her were locked within 6 months from the date of herresignation.Approval of changes in shares? Applicable ? Not applicableTransfer of changes in shares? Applicable ? Not applicableImplementation progress of share repurchase? Applicable ? Not applicableImplementation progress of reducing and repurchasing shares through centralized bidding? Applicable ? Not applicableEffect of changes in shares on financial indicators such as basic earnings per share and diluted earnings per share in the latest yearand the latest period, and net assets per share attributable to the Company's ordinary shareholders? Applicable ? Not applicableOther contents deemed necessary by the Company or required by the securities regulators to be disclosed? Applicable ? Not applicable
2. Changes in restricted shares
? Applicable ? Not applicable
Unit: share
| Shareholder name | Beginning number of restricted shares | Number of restricted shares lifted in the current period | Increase in restricted shares in the current period | Ending number of restricted shares | Reasons for sales restriction | Date of lifting sales restrictions |
| Zhang Jie | 12,994 | 0 | 4,331 | 17,325 | On March 20, 2023, Ms. Zhang Jie resigned from the position of the Company's Deputy General Manager of the Company due to reaching the statutory retirement age, and all the 17,325 A-shares of the Company held by her were locked within 6 months from the date of her resignation. | All the 17,325 A-shares held by Ms. Zhang Jie will be locked within half a year from the date of her resignation, and she still needs to comply with the relevant provisions on the restriction of the sale of shares of directors, supervisors and senior officers after half a year. |
| Total | 12,994 | 0 | 4,331 | 17,325 | -- | -- |
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II. Issuance and listing of securities
? Applicable ? Not applicableIII. Number of the Company's shareholders and shareholding status
Unit: share
| Total number of ordinary shareholders at the end of the reporting period. | 78,421 | Total number of preferred shareholders with restoration of voting rights at the end of the reporting period (if any) (see Note 8) | 0 | |||||
| Shareholdings of ordinary shareholders or top 10 ordinary shareholders holding 5% or more shares | ||||||||
| Shareholder name | Shareholder nature | Shareholding ratio | Quantity of ordinary shares held at the end of the reporting period | Change during the reporting period | Quantity of ordinary shares with restrictive conditions for sales | Number of ordinary shares without restrictive conditions for sales | Pledge, marking or freezing | |
| Share status | Quantity | |||||||
| HONG KONG NAM HOI (INTERNATIONAL) LTD. | Foreign legal person | 15.28% | 92,123,248 | 92,123,248 | ||||
| Shenzhen Guangju Industrial Co., Ltd. | State-owned legal person | 12.22% | 73,666,824 | 73,666,824 | ||||
| Shenzhen Energy Group Co., Ltd. | State-owned legal person | 10.80% | 65,106,130 | 65,106,130 | ||||
| BOCI SECURITIES LIMITED | Foreign legal person | 2.34% | 14,104,038 | -5,000 | 14,104,038 | |||
| Zeng Ying | Domestic natural person | 1.19% | 7,159,600 | 7,159,600 | ||||
| China Merchants Securities (Hong Kong) Co., Ltd. | Foreign legal person | 0.90% | 5,425,628 | -5,100 | 5,425,628 | |||
| Meiyi Investment and Property Co., Ltd. | Domestic non-state-owned legal person | 0.87% | 5,223,200 | 5,223,200 | ||||
| Haitong International Securities Company Limited-Account | Foreign legal person | 0.65% | 3,908,357 | 3,908,357 | ||||
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| Client | |||||||||||
| Huang Yilong | Domestic natural person | 0.64% | 3,866,500 | 3,866,500 | |||||||
| Li Baoqin | Domestic natural person | 0.51% | 3,048,150 | 3,048,150 | |||||||
| Strategic investors or general legal persons becoming the top 10 ordinary shareholders due to placement of new shares (if any) (see Note 3) | None | ||||||||||
| Association or concerted action of the above shareholders | 1. Shenzhen Energy Group Co., Ltd., holds 100% equity of the HONG KONG NAM HOI (INTERNATIONAL) LTD. 2. The Company does not know whether the above-mentioned other public shareholders have any association or are persons acting in concert. | ||||||||||
| Explanation of the above shareholders' involvement in entrusting/being entrusted voting rights and waiver of voting rights | None | ||||||||||
| Special explanation for the existence of repurchase accounts among the top 10 shareholders (if any) (see Note 11) | None | ||||||||||
| Shareholding of the top 10 ordinary shareholders without restrictive conditions for sales | |||||||||||
| Shareholder name | Ending number of ordinary shares without restrictive conditions for sales | Classes of shares | |||||||||
| Classes of shares | Quantity | ||||||||||
| HONG KONG NAM HOI (INTERNATIONAL) LTD. | 92,123,248 | Foreign shares listed domestically | 92,123,248 | ||||||||
| Shenzhen Guangju Industrial Co., Ltd. | 73,666,824 | RMB ordinary shares | 73,666,824 | ||||||||
| Shenzhen Energy Group Co., Ltd. | 65,106,130 | RMB ordinary shares | 65,106,130 | ||||||||
| BOCI SECURITIES LIMITED | 14,104,038 | Foreign shares listed domestically | 14,104,038 | ||||||||
| Zeng Ying | 7,159,600 | Foreign shares listed domestically | 7,159,600 | ||||||||
| China Merchants Securities (Hong Kong) Co., Ltd. | 5,425,628 | Foreign shares listed domestically | 5,425,628 | ||||||||
| Meiyi Investment and Property Co., Ltd. | 5,223,200 | RMB ordinary shares | 5,223,200 | ||||||||
| Haitong International Securities Company Limited-Account Client | 3,908,357 | Foreign shares listed domestically | 3,908,357 | ||||||||
| Huang Yilong | 3,866,500 | RMB ordinary shares | 3,866,500 | ||||||||
| Li Baoqin | 3,048,150 | Foreign shares listed domestically | 3,048,150 | ||||||||
| Description of association or concerted action among the top 10 ordinary shareholders without restrictive condition for sales and that between the top 10 ordinary shareholders without restrictive | 1. Shenzhen Energy Group Co., Ltd., holds 100% equity of the HONG KONG NAM HOI (INTERNATIONAL) LTD. 2. The Company does not know whether the above-mentioned other public shareholders have any association or are persons acting in concert. | ||||||||||
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
condition for sales and the top 10ordinary shareholdersDescription of the top 10 ordinaryshareholders' participation inmargin financing and securitieslending business (if any) (see Note4)
None
Whether the Company's top 10 ordinary shareholders and the top 10 ordinary shareholders without restrictive condition for salesconduct any agreed repurchase transactions during the reporting period? Yes ? NoThe Company's top 10 ordinary shareholders, and top 10 ordinary shareholders without restrictive condition for sales did notconduct any agreed repurchase transaction during the reporting period.IV. Changes in shareholding of directors, supervisors and senior officers
? Applicable ? Not applicableThere were no changes in the shareholdings of the Company's directors, supervisors and senior officers during the reporting period.For details, please refer to the 2022 Annual Report.V. Changes in the controlling shareholder or the actual controllerChanges in controlling shareholders during the reporting period? Applicable ? Not applicableThere was no change in the controlling shareholder of the Company during the reporting period.Changes in actual controller during the reporting period? Applicable ? Not applicableThere was no change in the actual controller of the Company during the reporting period.
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
Section VIII Preferred Shares? Applicable ? Not applicableDuring the reporting period, the Company had no preferred shares.
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
Section IX Bonds
? Applicable ? Not applicable
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
Section X Financial Report
I. Auditor's report
Whether the semi-annual report has been audited.? Yes ? NoThe Company's semi-annual report has not been audited.
II. Financial statementsThe unit in the notes to the financial statements is: RMB
1. Consolidated balance sheet
Prepared by: Shenzhen Nanshan Power Co., Ltd.
Unit: RMB
| Item | June 30, 2023 | January 1, 2023 |
| Current assets: | ||
| Cash and cash equivalents | 293,314,664.92 | 675,496,266.40 |
| Settlement reserve | ||
| Loans to other banks and other financial institutions | ||
| Trading financial assets | 145,000,000.00 | 440,013,571.10 |
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 144,831,860.55 | 135,833,492.64 |
| Receivables financing | ||
| Advances to suppliers | 53,931,606.71 | 45,448,287.86 |
| Premium receivable | ||
| Reinsurance accounts receivable | ||
| Reinsurance contract reserves receivable | ||
| Other receivables | 18,852,212.98 | 18,314,003.84 |
| Including: interest receivable | ||
| Dividends receivable | ||
| Purchase of financial assets under resale agreements | ||
| Inventories | 84,996,198.57 | 85,279,298.35 |
| Contract assets | 89,848.39 | 217,009.58 |
| Assets held for sale | ||
| Non-current assets maturing within one year |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| Other current assets | 238,256,408.74 | 188,248,840.44 |
| Total current assets | 979,272,800.86 | 1,588,850,770.21 |
| Non-current assets: | ||
| Loans and advances | ||
| Claim investments | ||
| Other claim investments | ||
| Long-term receivables | ||
| Long-term equity investments | 83,924,704.73 | 83,496,098.24 |
| Other investments in equity instruments | 300,615,000.00 | 300,615,000.00 |
| Other non-current financial assets | ||
| Investment properties | 1,748,955.40 | 1,833,344.20 |
| Fixed assets | 578,426,240.23 | 591,290,204.31 |
| Projects under construction | 6,222,095.21 | 4,861,062.16 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 4,987,282.16 | 7,707,617.90 |
| Intangible assets | 19,454,429.10 | 19,799,355.12 |
| R&D expenses | ||
| Goodwill | ||
| Long-term deferred expenses | 970,463.62 | 1,219,129.18 |
| Deferred tax assets | 1,172,366.49 | 1,172,366.49 |
| Other non-current assets | 5,724,444.82 | 5,371,398.18 |
| Total of non-current assets | 1,003,245,981.76 | 1,017,365,575.78 |
| Total assets | 1,982,518,782.62 | 2,606,216,345.99 |
| Current liabilities: | ||
| Short-term borrowings | 226,612,655.38 | 879,957,857.44 |
| Borrowing from the Central Bank | ||
| Borrowings from banks and other financial institutions | ||
| Trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 137,298,902.17 | 137,298,902.17 |
| Accounts payable | 4,121,762.97 | 5,227,836.22 |
| Advances from customers | ||
| Contract liabilities | ||
| Sale of financial assets under repurchase agreements | ||
| Deposits from customers and interbank | ||
| Funds from vicariously traded securities | ||
| Funds from vicariously underwritten securities |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| Employee compensation payable | 29,287,941.48 | 29,296,815.07 |
| Taxes payable | 7,269,477.80 | 5,107,666.73 |
| Other payables | 22,785,089.94 | 22,997,466.80 |
| Including: Interest payable | ||
| Dividends payable | ||
| Service fee and commission payable | ||
| Reinsurance premium payable | ||
| Liabilities held for sale | ||
| Non-current liabilities maturing within one year | 5,495,936.70 | 6,014,119.95 |
| Other current liabilities | 12,787.72 | 21,600.00 |
| Total current liabilities | 432,884,554.16 | 1,085,922,264.38 |
| Non-current liabilities: | ||
| Reserves for insurance contracts | ||
| Long-term borrowings | 105,274,084.45 | 28,019,758.68 |
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual bond | ||
| Lease liabilities | 2,262,160.03 | |
| Long-term payables | ||
| Long-term employee compensation payable | ||
| Estimated liabilities | 15,000,000.00 | 15,000,000.00 |
| Deferred income | 78,966,632.06 | 82,145,596.60 |
| Deferred tax liabilities | ||
| Other non-current liabilities | 45,112.54 | 47,511.72 |
| Total non-current liabilities | 199,285,829.05 | 127,475,027.03 |
| Total liabilities | 632,170,383.21 | 1,213,397,291.41 |
| Owner's equity: | ||
| Share capital | 602,762,596.00 | 602,762,596.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual bond | ||
| Capital reserves | 362,770,922.10 | 362,770,922.10 |
| Less: treasury stock | ||
| Other comprehensive income | -2,500,000.00 | -2,500,000.00 |
| Special reserves | 219,435.94 | |
| Surplus reserves | 332,908,397.60 | 332,908,397.60 |
| General risk reserves | ||
| Undistributed profit | 121,947,239.58 | 159,187,979.14 |
| Total equity attributable to the owners of parent company | 1,418,108,591.22 | 1,455,129,894.84 |
| Minority equity | -67,760,191.81 | -62,310,840.26 |
| Total owner's equity | 1,350,348,399.41 | 1,392,819,054.58 |
| Total liabilities and owners' equity | 1,982,518,782.62 | 2,606,216,345.99 |
Legal representative: Kong Guoliang Chief accountant: Chen Yuhui CFO: Zhang Xiaoyin Head of the accounting department: LinXiaojia
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
2. Balance sheet of the parent company
Unit: RMB
| Item | June 30, 2023 | January 1, 2023 |
| Current assets: | ||
| Cash and cash equivalents | 264,152,583.51 | 652,703,545.21 |
| Trading financial assets | 145,000,000.00 | 440,013,571.10 |
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 54,764,958.01 | 47,995,982.82 |
| Receivables financing | ||
| Advances to suppliers | 22,319,802.97 | 29,715,650.29 |
| Other receivables | 919,550,297.33 | 851,189,111.89 |
| Including: interest receivable | ||
| Dividends receivable | ||
| Inventories | 79,038,144.88 | 79,504,053.32 |
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | 230,188,501.37 | 180,501,049.31 |
| Total current assets | 1,715,014,288.07 | 2,281,622,963.94 |
| Non-current assets: | ||
| Claim investments | ||
| Other claim investments | ||
| Long-term receivables | ||
| Long-term equity investments | 352,264,960.27 | 352,171,153.27 |
| Other investments in equity instruments | 160,615,000.00 | 160,615,000.00 |
| Other non-current financial assets | ||
| Investment properties | ||
| Fixed assets | 272,700,853.74 | 279,587,315.87 |
| Projects under construction | 3,337,206.33 | 1,976,173.28 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 4,987,282.16 | 7,707,617.90 |
| Intangible assets | 168,431.13 | 193,607.19 |
| R&D expenses | ||
| Goodwill | ||
| Long-term deferred expenses | 902,817.19 | 1,106,385.13 |
| Deferred tax assets | ||
| Other non-current assets | ||
| Total of non-current assets | 794,976,550.82 | 803,357,252.64 |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| Total assets | 2,509,990,838.89 | 3,084,980,216.58 |
| Current liabilities: | ||
| Short-term borrowings | 226,612,655.38 | 285,705,357.36 |
| Trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 137,298,902.17 | 737,298,902.17 |
| Accounts payable | 1,590,154.08 | 3,759,009.04 |
| Advances from customers | ||
| Contract liabilities | ||
| Employee compensation payable | 21,000,126.20 | 18,905,560.54 |
| Taxes payable | 3,154,830.93 | 1,203,569.67 |
| Other payables | 167,052,061.36 | 170,451,537.10 |
| Including: Interest payable | ||
| Dividends payable | ||
| Liabilities held for sale | ||
| Non-current liabilities maturing within one year | 5,495,936.70 | 6,014,119.95 |
| Other current liabilities | ||
| Total current liabilities | 562,204,666.82 | 1,223,338,055.83 |
| Non-current liabilities: | ||
| Long-term borrowings | 105,274,084.45 | 28,019,758.68 |
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual bond | ||
| Lease liabilities | 2,262,160.03 | |
| Long-term payables | ||
| Long-term employee compensation payable | ||
| Estimated liabilities | ||
| Deferred income | 47,245,826.04 | 48,978,528.78 |
| Deferred tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 152,519,910.49 | 79,260,447.49 |
| Total liabilities | 714,724,577.31 | 1,302,598,503.32 |
| Owner's equity: | ||
| Share capital | 602,762,596.00 | 602,762,596.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual bond | ||
| Capital reserves | 289,963,039.70 | 289,963,039.70 |
| Less: treasury stock | ||
| Other comprehensive income | ||
| Special reserves | 219,435.94 | |
| Surplus reserves | 332,908,397.60 | 332,908,397.60 |
| Undistributed profit | 569,412,792.34 | 556,747,679.96 |
| Total owner's equity | 1,795,266,261.58 | 1,782,381,713.26 |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| Total liabilities and owners' equity | 2,509,990,838.89 | 3,084,980,216.58 |
Legal representative: Kong Guoliang Chief accountant: Chen Yuhui CFO: Zhang Xiaoyin Head of the accounting department: LinXiaojia
3. Consolidated income statement
Unit: RMB
| Item | 1H23 | 1H22 |
| I. Total revenue | 271,268,185.05 | 229,243,542.07 |
| Including: operating revenue | 271,268,185.05 | 229,243,542.07 |
| Interest income | ||
| Premiums earned | ||
| Income from service fee and commission | ||
| II. Total operating costs | 342,848,838.47 | 362,962,644.74 |
| Including: operating costs | 285,367,929.90 | 282,486,432.21 |
| Interest expenses | ||
| Expenses on service fee and commission | ||
| Surrender value | ||
| Net amount of compensation payout | ||
| Net change in insurance contract reserves | ||
| Policy dividend payout | ||
| Cost of reinsurance | ||
| Taxes and surcharges | 2,041,706.60 | 2,896,262.61 |
| Selling and distribution expenses | 897,707.82 | |
| G&A expenses | 34,513,202.72 | 43,777,644.68 |
| R&D expenses | 13,297,926.31 | 17,072,589.13 |
| Financial expenses | 6,730,365.12 | 16,729,716.11 |
| Including: interest expenses | 11,768,338.22 | 20,539,845.79 |
| Interest income | 3,020,964.70 | 3,594,848.74 |
| Plus: other income | 4,065,271.26 | 4,440,645.78 |
| Investment income (loss expressed with "-") | 19,725,870.53 | 27,741,227.07 |
| Including: income from investment in associates and joint ventures | 1,643,156.49 | -1,471,602.77 |
| Gain from derecognition of financial assets measured at amortized cost | ||
| Foreign exchange gains (loss expressed with "-") | ||
| Net exposure hedging gains (loss |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| expressed with "-") | ||
| Gains from changes in fair value (losses expressed with "-") | ||
| Credit loss (loss expressed with "-") | ||
| Asset impairment loss (loss expressed with "-") | ||
| Gains from disposal of assets (losses expressed with "-") | 111,895.22 | |
| III. Operation profit (loss expressed with "-") | -47,677,616.41 | -101,537,229.82 |
| Plus: non-operating revenue | 4,994,213.17 | |
| Less: non-operating expenses | 6,208.32 | 228,495.85 |
| IV. Total profit (total loss expressed with "-") | -42,689,611.56 | -101,765,725.67 |
| Less: income tax expenses | 479.55 | |
| V. Net profit (net loss expressed with "-") | -42,690,091.11 | -101,765,725.67 |
| (i) Classified as per business continuity | ||
| 1. Net profit from continuing operations (net loss expressed with "-") | -42,690,091.11 | -101,765,725.67 |
| 2. Net profit from discontinued operations (net loss expressed with "-") | ||
| (II) Classified as per attribution of ownership | ||
| 1. Net profit attributable to shareholders of the parent company (net loss expressed with "-") | -37,240,739.56 | -94,098,149.09 |
| 2. Minority interest (net loss expressed with "-") | -5,449,351.55 | -7,667,576.58 |
| VI. Net after-tax amount of other comprehensive income | ||
| Net amount of other comprehensive income after tax attributed to parent company owners | ||
| (i) Other comprehensive income that cannot be reclassified into the profit or loss | ||
| 1. Changes arising from re-measurement of defined benefit plans | ||
| 2. Other comprehensive income that cannot be transferred to profit or loss under the equity method | ||
| 3. Other changes in fair value of investments in equity instruments | ||
| 4. Changes in fair value of the enterprise's own credit risk | ||
| 5. Others | ||
| (ii) Other comprehensive income that will be reclassified into profit or loss | ||
| 1. Other comprehensive income of convertible profit or loss under the equity method |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| 2. Changes in fair value of other claim investments | ||
| 3. Amount of financial assets reclassified into the other comprehensive income | ||
| 4. Credit provision for impairment of other claim investments | ||
| 5. Hedging reserves for cash flow | ||
| 6. Differences arising from foreign currency financial statements | ||
| 7. Others | ||
| Net amount of other comprehensive income after tax attributable to minority shareholders | ||
| VII. Total comprehensive income | -42,690,091.11 | -101,765,725.67 |
| Total comprehensive income attributable to the owner of the parent company | -37,240,739.56 | -94,098,149.09 |
| Total comprehensive income attributable to the minority shareholders | -5,449,351.55 | -7,667,576.58 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share | -0.0618 | -0.1561 |
| (II) Diluted earnings per share | -0.0618 | -0.1561 |
In case of any business combination under the same control in the current period, the net profit realized by the combinee before thecombination was RMB0.00, and the net profit realized by the combinee in the previous period was RMB0.00.Legal representative: Kong Guoliang Chief accountant: Chen Yuhui CFO: Zhang Xiaoyin Head of the accounting department: LinXiaojia
4. Income statement of the parent company
Unit: RMB
| Item | 1H23 | 1H22 |
| I. Operating revenue | 167,763,232.36 | 129,074,352.66 |
| Less: operating costs | 167,385,274.90 | 153,243,699.14 |
| Taxes and surcharges | 797,742.96 | 1,561,901.55 |
| Selling and distribution expenses | 333,513.64 | |
| G&A expenses | 13,560,282.42 | 14,624,528.90 |
| R&D expenses | 8,859,406.25 | 11,637,676.90 |
| Financial expenses | -15,313,487.00 | 1,145,966.46 |
| Including: interest expenses | 6,443,539.09 | 18,356,302.31 |
| Interest income | -22,272,424.92 | 17,449,061.98 |
| Plus: other income | 2,014,744.97 | 2,453,965.18 |
| Investment income (loss expressed with "-") | 17,708,671.86 | 28,915,295.59 |
| Including: income from investment in associates and joint ventures | 1,308,357.00 | |
| Gains from derecognition of financial assets measured by amortized cost (losses |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| expressed with "-") | ||
| Net exposure hedging gains (loss expressed with "-") | ||
| Gains from changes in fair value (losses expressed with "-") | ||
| Credit loss (loss expressed with "-") | ||
| Asset impairment loss (loss expressed with "-") | ||
| Gains from disposal of assets (losses expressed with "-") | -40,000.01 | |
| II. Operation profit (loss expressed with "-") | 11,823,916.01 | -21,770,159.52 |
| Plus: non-operating revenue | 847,884.24 | |
| Less: non-operating expenses | 6,208.32 | 218,495.85 |
| III. Total profit (total losses expressed with "-") | 12,665,591.93 | -21,988,655.37 |
| Less: income tax expenses | 479.55 | |
| IV. Net profit (net losses expressed with "-") | 12,665,112.38 | -21,988,655.37 |
| (I) Net profit from continuing operations (net losses expressed with "-") | 12,665,112.38 | -21,988,655.37 |
| (II) Net profit from discontinued operations (net losses expressed with "-") | ||
| V. Net after-tax amount of other comprehensive income | ||
| (i) Other comprehensive income that cannot be reclassified into the profit or loss | ||
| 1. Changes arising from re-measurement of defined benefit plans | ||
| 2. Other comprehensive income that cannot be transferred to profit or loss under the equity method | ||
| 3. Other changes in fair value of investments in equity instruments | ||
| 4. Changes in fair value of the enterprise's own credit risk | ||
| 5. Others | ||
| (ii) Other comprehensive income that will be reclassified into profit or loss | ||
| 1. Other comprehensive income of convertible profit or loss under the equity method | ||
| 2. Changes in fair value of other claim investments | ||
| 3. Amount of financial assets reclassified into the other comprehensive income | ||
| 4. Credit provision for impairment of other claim investments | ||
| 5. Hedging reserves for cash flow | ||
| 6. Differences arising from foreign currency financial statements |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| 7. Others | ||
| VI. Total comprehensive income | 12,665,112.38 | -21,988,655.37 |
| VII. Earnings per share: | ||
| (I) Basic earnings per share | ||
| (II) Diluted earnings per share |
Legal representative: Kong Guoliang Chief accountant: Chen Yuhui CFO: Zhang Xiaoyin Head of the accounting department: LinXiaojia
5. Consolidated statement of cash flows
Unit: RMB
| Item | 1H23 | 1H22 |
| I. Cash flows from operating activities: | ||
| Cash received from sales of goods and rendering of services | 296,915,732.81 | 210,746,338.10 |
| Net increase in deposits from customers and due from other banks and financial institutions | ||
| Net increase in borrowings from the Central Bank | ||
| Net increase in borrowings from banks and other financial institutions | ||
| Cash received from receiving insurance premium of original insurance contract | ||
| Net cash receipts from reinsurance business | ||
| Net increase in policyholders' deposits and investments | ||
| Cash receipts from interest, service fee and commission | ||
| Net increase in loans from banks and other financial institutions | ||
| Net increase in funds from repurchase business | ||
| Net cash receipts from acting trading securities | ||
| Refund of taxes and surcharges | 321,785,326.40 | |
| Other cash receipts relating to operating activities | 12,296,599.09 | 45,493,756.61 |
| Sub-total of cash inflows from operating activities | 309,212,331.90 | 578,025,421.11 |
| Cash paid for purchase of goods and receiving of services | 280,708,443.46 | 283,749,702.63 |
| Net increase in customer loans and advances | ||
| Net increase in deposits with central bank and other banks and financial institutions | ||
| Cash payments for original insurance contract claims | ||
| Net increase in loans to banks and |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| other financial institutions | ||
| Cash payments for interest, service fee and commission | ||
| Cash payments for policyholder dividend | ||
| Cash paid to and on behalf of employees | 54,829,117.40 | 64,322,418.53 |
| Cash payments for taxes | 12,312,023.45 | 7,023,037.32 |
| Cash paid for other operating activities related | 18,379,237.13 | 22,342,179.33 |
| Sub-total of cash outflows from operating activities | 366,228,821.44 | 377,437,337.81 |
| Net cash flow from operating activities | -57,016,489.54 | 200,588,083.30 |
| II. Cash flows from the investing activities: | ||
| Cash receipts from investment withdrawal | 285,010,220.37 | |
| Cash received from the investment income | 29,300,616.97 | 19,707,290.27 |
| Net cash received from the disposal of fixed assets, intangible assets and other long-term assets | 550,880.00 | |
| Net cash received from the disposal of subsidiaries and other business units | ||
| Other cash received in connection with investing activities | ||
| Sub-total of cash inflows from investing activities | 314,861,717.34 | 19,707,290.27 |
| Cash paid for acquiring and constructing fixed assets, intangible assets and other long-term assets | 2,754,947.23 | 2,242,860.09 |
| Cash paid for investments | 747,899,274.61 | |
| Net increase in pledged loans | ||
| Net cash paid for acquisition of subsidiaries and other business units | ||
| Cash paid for other investing activities | 50,000,000.00 | |
| Sub-total of cash outflows from investing activities | 52,754,947.23 | 750,142,134.70 |
| Net cash flow from investing activities | 262,106,770.11 | -730,434,844.43 |
| III. Cash flows from the financing activities: | ||
| Cash received from the absorption of investments | ||
| Including: Cash received from absorption of investments of minority shareholders by subsidiaries | ||
| Cash received from borrowings | 265,878,587.77 | 1,021,949,358.06 |
| Cash received in connection with other financing activities | ||
| Sub-total of cash inflows from financing activities | 265,878,587.77 | 1,021,949,358.06 |
| Cash paid for debt repayments | 847,229,358.05 | 706,518,623.08 |
| Cash paid for the distribution of dividends and profits or the payment of interests | 6,158,185.74 | 5,466,201.94 |
| Including: dividends and profits paid |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| to minority shareholders by subsidiaries | ||
| Cash paid for other financing activities | 5,440,434.23 | |
| Sub-total of cash outflows from financing activities | 858,827,978.02 | 711,984,825.02 |
| Net cash flow from financing activities | -592,949,390.25 | 309,964,533.04 |
| IV. Effect of fluctuation in exchange rate on cash and cash equivalents | 237,073.97 | 295,703.69 |
| V. Net increase in cash and cash equivalents | -387,622,035.71 | -219,586,524.40 |
| Plus: beginning balance of cash and cash equivalents | 648,021,672.06 | 689,604,633.59 |
| VI. Ending balance of cash and cash equivalents | 260,399,636.35 | 470,018,109.19 |
Legal representative: Kong Guoliang Chief accountant: Chen Yuhui CFO: Zhang Xiaoyin Head of the accounting department: LinXiaojia
6. The statement of cash flows of the parent company
Unit: RMB
| Item | 1H23 | 1H22 |
| I. Cash flows from operating activities: | ||
| Cash received from sales of goods and rendering of services | 238,785,052.21 | 195,459,447.73 |
| Refund of taxes and surcharges | 317,508,755.71 | |
| Other cash receipts relating to operating activities | 56,464,858.58 | 882,162,936.47 |
| Sub-total of cash inflows from operating activities | 295,249,910.79 | 1,395,131,139.91 |
| Cash paid for purchase of goods and receiving of services | 169,853,255.01 | 139,104,100.10 |
| Cash paid to and on behalf of employees | 33,292,463.79 | 42,760,321.94 |
| Cash payments for taxes | 4,813,280.65 | 366,550.16 |
| Cash paid for other operating activities related | 129,718,913.30 | 358,690,786.29 |
| Sub-total of cash outflows from operating activities | 337,677,912.75 | 540,921,758.49 |
| Net cash flow from operating activities | -42,428,001.96 | 854,209,381.42 |
| II. Cash flows from the investing activities: | ||
| Cash receipts from investment withdrawal | 285,010,220.37 | |
| Cash received from the investment income | 27,618,217.79 | 19,707,290.27 |
| Net cash received from the disposal of fixed assets, intangible assets and other long-term assets | ||
| Net cash received from the disposal of subsidiaries and other business units | ||
| Other cash received in connection with investing activities | ||
| Sub-total of cash inflows from investing activities | 312,628,438.16 | 19,707,290.27 |
| Cash paid for acquiring and constructing fixed assets, intangible assets and other long-term assets | 2,608,372.23 | 780,194.99 |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| Cash paid for investments | 747,899,274.61 | |
| Net cash paid for acquisition of subsidiaries and other business units | ||
| Cash paid for other investing activities | 63,500,000.00 | |
| Sub-total of cash outflows from investing activities | 66,108,372.23 | 748,679,469.60 |
| Net cash flow from investing activities | 246,520,065.93 | -728,972,179.33 |
| III. Cash flows from the financing activities: | ||
| Cash received from the absorption of investments | ||
| Cash received from borrowings | 265,878,587.77 | 439,191,858.06 |
| Cash received in connection with other financing activities | ||
| Sub-total of cash inflows from financing activities | 265,878,587.77 | 439,191,858.06 |
| Cash paid for debt repayments | 847,229,358.05 | 706,518,623.08 |
| Cash paid for the distribution of dividends and profits or the payment of interests | 6,155,786.56 | 5,466,201.94 |
| Cash paid for other financing activities | 10,578,867.57 | |
| Sub-total of cash outflows from financing activities | 863,964,012.18 | 711,984,825.02 |
| Net cash flow from financing activities | -598,085,424.41 | -272,792,966.96 |
| IV. Effect of fluctuation in exchange rate on cash and cash equivalents | 1,964.51 | 1,767.29 |
| V. Net increase in cash and cash equivalents | -393,991,395.93 | -147,553,997.58 |
| Plus: beginning balance of cash and cash equivalents | 625,228,950.87 | 592,751,213.88 |
| VI. Ending balance of cash and cash equivalents | 231,237,554.94 | 445,197,216.30 |
Legal representative: Kong Guoliang Chief accountant: Chen Yuhui CFO: Zhang Xiaoyin Head of the accounting department: LinXiaojia
7. Consolidated statement of changes in owner's equity
Current amount
Unit: RMB
| Item | 1H23 | ||||||||||||||
| Owner's equity attributable to the parent company | Minority equity | Total owner's equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury stock | Other comprehensive income | Special reserves | Surplus reserves | General risk reserves | Undistributed profit | Others | Sub-total | |||||
| Preferred shares | Perpetual bond | Others | |||||||||||||
| I. Ending balance last year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 159,187,979.14 | 1,455,129,894.84 | -62,310,840.26 | 1,392,819,054.58 | |||||||
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| Add: changes of accounting policies | |||||||||||||||
| Adjustments for correction of accounting errors in prior year | |||||||||||||||
| Business combination under the same control | |||||||||||||||
| Others | |||||||||||||||
| II. Beginning balance this year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 159,187,979.14 | 1,455,129,894.84 | -62,310,840.26 | 1,392,819,054.58 | |||||||
| III. Current increases/decreases ("-" for decreases) | 219,435.94 | -37,240,739.56 | -37,021,303.62 | -5,449,351.55 | -42,470,655.17 | ||||||||||
| (I) Total comprehensive income | -37,240,739.56 | -37,240,739.56 | -5,449,351.55 | -42,690,091.11 | |||||||||||
| (II) Capital contributed or reduced by owners | |||||||||||||||
| 1. Ordinary shares contributed by owners | |||||||||||||||
| 2. Capital contributed by holders of other equity instruments | |||||||||||||||
| 3. Amounts of share-based payments included in the owner's equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (III) Profit |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| distribution | |||||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk reserves | |||||||||||||||
| 3. Profit distributed to owners (or shareholders) | |||||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal carry-forward of owner's equity | |||||||||||||||
| 1. Conversion of capital reserves into capital (or share capital) | |||||||||||||||
| 2. Conversion of surplus reserves into capital (or share capital) | |||||||||||||||
| 3. Making up losses with surplus reserves | |||||||||||||||
| 4. Carry-forward of changes in benefit plans to retained earnings | |||||||||||||||
| 5. Carry-forward of other comprehensive income to retained earnings | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserves | 219,435.94 | 219,435.94 | 219,435.94 | ||||||||||||
| 1. | 5,086,97 | 5,086,97 | 5,086,97 |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| Withdrawal in this period | 3.52 | 3.52 | 3.52 | ||||||||||||
| 2. Use in this period | 4,867,537.58 | 4,867,537.58 | 4,867,537.58 | ||||||||||||
| (VI) Others | |||||||||||||||
| IV. Ending balance in this period | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 219,435.94 | 332,908,397.60 | 121,947,239.58 | 1,418,108,591.22 | -67,760,191.81 | 1,350,348,399.41 |
Amount last year
Unit: RMB
| Item | 1H22 | ||||||||||||||
| Owner's equity attributable to the parent company | Minority equity | Total owner's equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury stock | Other comprehensive income | Special reserves | Surplus reserves | General risk reserves | Undistributed profit | Others | Sub-total | |||||
| Preferred shares | Perpetual bond | Others | |||||||||||||
| I. Ending balance last year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 319,351,219.81 | 1,615,293,135.51 | -36,951,220.07 | 1,578,341,915.44 | |||||||
| Add: changes of accounting policies | |||||||||||||||
| Adjustments for correction of accounting errors in prior year | |||||||||||||||
| Business combination under the same control | |||||||||||||||
| Others | |||||||||||||||
| II. Beginning balance this year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 319,351,219.81 | 1,615,293,135.51 | -36,951,220.07 | 1,578,341,915.44 | |||||||
| III. Current increases/decreases ("-" | -94,098,1 | -94,098,1 | -7,667,57 | -101,765, | |||||||||||
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| for decreases) | 49.09 | 49.09 | 6.58 | 725.67 | |||||||||||
| (I) Total comprehensive income | -94,098,149.09 | -94,098,149.09 | -7,667,576.58 | -101,765,725.67 | |||||||||||
| (II) Capital contributed or reduced by owners | |||||||||||||||
| 1. Ordinary shares contributed by owners | |||||||||||||||
| 2. Capital contributed by holders of other equity instruments | |||||||||||||||
| 3. Amounts of share-based payments included in the owner's equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (III) Profit distribution | |||||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk reserves | |||||||||||||||
| 3. Profit distributed to owners (or shareholders) | |||||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal carry-forward of owner's equity | |||||||||||||||
| 1. Conversion of capital reserves into capital (or |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| share capital) | |||||||||||||||
| 2. Conversion of surplus reserves into capital (or share capital) | |||||||||||||||
| 3. Making up losses with surplus reserves | |||||||||||||||
| 4. Carry-forward of changes in benefit plans to retained earnings | |||||||||||||||
| 5. Carry-forward of other comprehensive income to retained earnings | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserves | |||||||||||||||
| 1. Withdrawal in this period | |||||||||||||||
| 2. Use in this period | |||||||||||||||
| (VI) Others | |||||||||||||||
| IV. Ending balance in this period | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 225,253,070.72 | 1,521,194,986.42 | -44,618,796.65 | 1,476,576,189.77 |
Legal representative: Kong Guoliang Chief accountant: Chen Yuhui CFO: Zhang Xiaoyin Head of the accounting department: LinXiaojia
8. Statement of changes in owner's equity of parent company
Current amount
Unit: RMB
| Item | 1H23 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury stock | Other comprehensive incom | Special reserves | Surplus reserves | Undistributed profit | Others | Total owner's equity | |||
| Preferred shares | Perpetual bond | Others | ||||||||||
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| e | ||||||||||||
| I. Ending balance last year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 556,747,679.96 | 1,782,381,713.26 | |||||||
| Add: changes of accounting policies | ||||||||||||
| Adjustments for correction of accounting errors in prior year | ||||||||||||
| Others | ||||||||||||
| II. Beginning balance this year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 556,747,679.96 | 1,782,381,713.26 | |||||||
| III. Current increases/decreases ("-" for decreases) | 219,435.94 | 12,665,112.38 | 12,884,548.32 | |||||||||
| (I) Total comprehensive income | 12,665,112.38 | 12,665,112.38 | ||||||||||
| (II) Capital contributed or reduced by owners | ||||||||||||
| 1. Ordinary shares contributed by owners | ||||||||||||
| 2. Capital contributed by holders of other equity instruments | ||||||||||||
| 3. Amounts of share-based payments included in the owner's equity | ||||||||||||
| 4. Others | ||||||||||||
| (III) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| reserves | ||||||||||||
| 2. Profits distributed to owners (or shareholders) | ||||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carry-forward of owner's equity | ||||||||||||
| 1. Conversion of capital reserves into capital (or share capital) | ||||||||||||
| 2. Conversion of surplus reserves into capital (or share capital) | ||||||||||||
| 3. Making up losses with surplus reserves | ||||||||||||
| 4. Carry-forward of changes in benefit plans to retained earnings | ||||||||||||
| 5. Carry-forward of other comprehensive income to retained earnings | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserves | 219,435.94 | 219,435.94 | ||||||||||
| 1. Withdrawal in this period | 3,810,328.32 | 3,810,328.32 | ||||||||||
| 2. Use in this period | 3,590,892.38 | 3,590,892.38 | ||||||||||
| (VI) Others | ||||||||||||
| IV. Ending balance in this period | 602,762,596.00 | 289,963,039.70 | 219,435.94 | 332,908,397.60 | 569,412,792.34 | 1,795,266,261.58 |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
Amount last year
Unit: RMB
| Item | 1H22 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury stock | Other comprehensive income | Special reserves | Surplus reserves | Undistributed profit | Others | Total owner's equity | |||
| Preferred shares | Perpetual bond | Others | ||||||||||
| I. Ending balance last year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 562,739,676.37 | 1,788,373,709.67 | |||||||
| Add: changes of accounting policies | ||||||||||||
| Adjustments for correction of accounting errors in prior year | ||||||||||||
| Others | ||||||||||||
| II. Beginning balance this year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 562,739,676.37 | 1,788,373,709.67 | |||||||
| III. Current increases/decreases ("-" for decreases) | -21,988,655.37 | -21,988,655.37 | ||||||||||
| (I) Total comprehensive income | -21,988,655.37 | -21,988,655.37 | ||||||||||
| (II) Capital contributed or reduced by owners | ||||||||||||
| 1. Ordinary shares contributed by owners | ||||||||||||
| 2. Capital contributed by holders of other equity instruments | ||||||||||||
| 3. Amounts of share-based payments | ||||||||||||
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| included in the owner's equity | ||||||||||||
| 4. Others | ||||||||||||
| (III) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Profits distributed to owners (or shareholders) | ||||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carry-forward of owner's equity | ||||||||||||
| 1. Conversion of capital reserves into capital (or share capital) | ||||||||||||
| 2. Conversion of surplus reserves into capital (or share capital) | ||||||||||||
| 3. Making up losses with surplus reserves | ||||||||||||
| 4. Carry-forward of changes in benefit plans to retained earnings | ||||||||||||
| 5. Carry-forward of other comprehensive income to retained earnings | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserves | ||||||||||||
| 1. |
Full text of The Semi-Annual Report 2023 of Shenzhen Nanshan Power Co., Ltd.
| Withdrawal in this period | ||||||||||||
| 2. Use in this period | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Ending balance in this period | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 540,751,021.00 | 1,766,385,054.30 |
Legal representative: Kong Guoliang Chief accountant: Chen Yuhui CFO: Zhang Xiaoyin Head of the accounting department: LinXiaojia
Shenzhen Nanshan Power Co., Ltd.Notes to the 2023 Semi-Annual Financial Statements
(Expressed in RMB unless otherwise stated)
I. Basic information of the Company
1. Company profile
Shenzhen Nanshan Power Co., Ltd. (hereinafter referred to as "Company") is a joint stocklimited company restructured and established by foreign-invested enterprises onNovember 25, 1993 with the approval of the document Shen Fu Ban Fu [1993] No.897issued by the General Office of the People's Government of Shenzhen.Upon the approval of the document (Shen Zheng Ban Fu [1993] No. 179) issued by theShenzhen Securities Regulatory Office, the Company issued 40 million RMB ordinaryshares and 37 million domestically listed foreign shares to domestic and overseasinvestors respectively on January 3, 1994. On July 1, 1994 and November 28, 1994, theCompany's RMB ordinary shares (A shares) and domestically listed foreign shares (Bshares) were listed and traded in the Shenzhen Stock Exchange successively.The Company is headquartered at the 16th and 17th floors of Hantang Building, OverseasChinese Town, Nanshan District, Shenzhen, Guangdong Province, China.The financial statements have been approved by the Company's Board of Directors fordisclosure on August 23, 2023.
2. Scope of financial statements
a) There are 9 subsidiaries included in consolidated financial statements in this period,
including:
| Name of subsidiaries | Shareholding ratio % | Remarks |
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. ("Zhongshan Electric Power") | 80.00 | |
| Shenzhen Shennandian Turbine Engineering Technology Co., Ltd. ("Engineering Company") | 100.00 | |
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd. ("Environmental Protection Company") | 100.00 | |
| Shenzhen Server Petrochemical Supplying Co., Ltd. ("Shenzhen Server") | 50.00 | |
| Shenzhen New Power Industrial Co., Ltd. ("New Power") | 100.00 | |
| Shen Nan Energy (Singapore) Co., Ltd. (the "Singapore Company") | 100.00 | |
| Hong Kong Hing Tak Shing Limited ("Hing Tak Shing") | 100.00 |
| Name of subsidiaries | Shareholding ratio % | Remarks |
| Zhongshan Shennan Electric Storage Co., Ltd. ("Shennan Storage") | 80.00 | |
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) (" Zhuhai Hengqin") | 99.96 |
See Notes "6. Changes in the scope of consolidation" and "7. Equity in other entities" fordetails of the scope of the current consolidated financial statements and the changes.
II. Basis of preparation for the financial statements
1. Basis of preparation
Based on the continuing operation and according to the actual transactions and events, theCompany prepares the financial statements in accordance with "the Accounting Standardsfor Business Enterprises - Basic Standards " promulgated by the Ministry of Finance andvarious specific accounting standards, application guidelines for accounting standards forbusiness bnterprises, interpretations and other relevant provisions for accountingstandards for business enterprises (hereinafter collectively referred to as the "AccountingStandards for Business Enterprises"), as well as the disclosure provisions by " GeneralProvisions on Financial Reporting, No. 15 of the Rules for Information Disclosure andPresentation by Companies that Publically Issue Securities" issued by the ChinaSecurities Regulatory Commission.
2. Continuing operation
The Company has the ability of continuing operation for at least 12 months as of the endof the reporting period, and there are no major events may affect the ability of continuingoperation.
III. Significant accounting policies and accounting estimates
The Company and its subsidiaries are engaged in electricity and thermal powerproduction, power station construction, fuel oil trading, engineering and technicalconsulting and sludge drying business. The Company and its subsidiaries have formulatedseveral specific accounting policies and accounting estimates for revenue recognition andother transactions and events according to the actual production and operationcharacteristics and the relevant provisions of Accounting Standards for BusinessEnterprises. See Note III.XXIV "Revenue" and other descriptions for details.
1. Statement in compliance with the Accounting Standards for Business Enterprises
The financial statements comply with the Accounting Standards for Business Enterprisespromulgated by the Ministry of Finance, and truly and completely reflect the Company'sfinancial position, operating results, changes in owners' (shareholders') equity, cash flowsand other relevant information during the reporting period.
2. Accounting period
The fiscal year is from January 1 to December 31 of each calendar year.
3. Operating cycle
The Company takes 12 months as a normal operating cycle, and as the classificationstandard for the liquidity of assets and liabilities.
4. Recording currency
The Company adopts RMB as its recording currency.
5. Accounting treatment method of business combination under the same control andnot under the same controlBusiness combination under the same control: the assets and liabilities acquired by thecombining party in the business combination are measured at the book value of the assetsand liabilities (including the goodwill formed by the acquisition of the combined party bythe ultimate controller) of the combined party in the consolidated financial statements ofthe ultimate controller on the combination date. The difference between the book value ofnet assets acquired from the combination and the book value of the consideration paid forthe combination (or the total nominal value of shares issued) shall be adjusted to thecapital stock premium in the capital reserves, and the retained earnings shall be adjusted ifthe capital stock premium in the capital reserves is insufficient to be offset.Business combination not under the same control: the acquirer shall, on the acquisitiondate, measure the assets surrendered and liabilities incurred or assumed as theconsideration for the business combination at the fair value, and the difference betweenthe fair value and its book value shall be included in the current profit or loss. Thedifference of the combination cost in excess of the acquiree's share of fair value of netidentifiable assets is recognized as goodwill. The difference of the combination cost inshort of the share of fair value of net identifiable assets of the acquiree obtained in thecombination shall be included in the current profit or loss.Costs directly attributable to the business combination shall be included in the currentprofit or loss as occurred; Transaction costs for the issuance of equity securities or debtsecurities for the business combination shall be included in the initially recognizedamount of the equity securities or debt securities.
6. Preparation method of the consolidated financial statements
a) Scope of consolidation
The scope of consolidated financial statements is determined on the basis of control,including the Company and all subsidiaries.b) Procedures of consolidation
The Company prepares the consolidated financial statements based on the financialstatements of the Company and all subsidiaries with reference to other relevantmaterials. In preparing the consolidated financial statements, the Company treatsthe whole enterprise group as an accounting entity to reflect the overall financialposition, operating results and cash flows of the enterprise group in accordancewith the recognition, measurement and presentation requirements of the relevantAccounting Standards for Business Enterprises and in accordance with the unifiedaccounting policies.The accounting policies and accounting period adopted by all subsidiaries includedin the scope of the consolidated financial statements shall be consistent with thoseof the Company; if not inconsistent with those of the Company, necessaryadjustments shall be made according to the accounting policies and accountingperiod of the Company at preparation. For subsidiaries acquired from businesscombination not under the same control, the financial statements shall be adjustedon the basis of the fair value of the identifiable net assets on the acquisition date.For subsidiaries acquired from business combination under the same control,adjustments shall be made to the financial statements based on the book value of itsassets and liabilities (including the goodwill formed by the acquisition of thesubsidiary by the ultimate controller) in the financial statements of the ultimatecontroller.The owner's equity, current net profit or loss and share attributable to minorityshareholders in current comprehensive income of subsidiaries shall be separatelypresented under the owner's equity in the consolidated balance sheet, net profit andtotal comprehensive income in the consolidated income statement. The balanceresulting from the excess of the minority shareholders' share of the current loss of asubsidiary over the minority's share of the subsidiary's owners' equity at thebeginning of the period is eliminated to reduce the minority equity.
(1) Addition of subsidiaries or business
During the reporting period, if there is a new subsidiary or business due to the
business combination under the same control, the beginning amount ofconsolidated balance sheet shall be adjusted; The revenues, expenses and profitsfrom the beginning of the consolidation period to the end of the reporting period ofthe subsidiary or business shall be included in the consolidated income statement;The cash flow of subsidiaries or business combination from the beginning of thecurrent period to the end of the reporting period shall be included in theconsolidated statement of cash flows, and the relevant items of the comparativestatements shall be adjusted as if the consolidated reporting entity has alwaysexisted since the time point when the ultimate controller begins to control it.Where the Company can exercise control over the investee under common controldue to additional investment or other reasons, adjustments shall be made as if allparties involved in the combination exist at the beginning of the control by theultimate controller. For equity investments held prior to the acquisition of controlof the combinee, the related gains or losses, other comprehensive income and otherchanges in net assets recognized between the later of the date of acquisition of theoriginal equity interest and the date on which the combining party and thecombinee are under the same control and the date of consolidation are eliminatedagainst retained earnings at the beginning of the comparative statement period oragainst current profit or loss, respectively.During the reporting period, if there is a new subsidiary or business due to businesscombination not under the same control, the beginning amount of the consolidatedbalance sheet will not be adjusted. The revenues, expenses and profits of thesubsidiary or business from the purchase date to the end of the reporting periodshall be included in the consolidated income statement. The cash flow of thesubsidiaries or business from the purchase date to the end of the reporting periodshall be included in the consolidated statement of cash flows.Where the Company can exercise control over the investee not under the samecontrol due to additional investment or other reasons, the Company shall re-measure the equity of the acquiree held before the purchase date at the fair value ofthe equity on the purchase date, and the difference between the fair value and thebook value shall be included in the current investment income. If the equity of theacquiree held before the purchase date involves the other comprehensive incomeunder the accounting by equity method and changes in owners' equity other thannet profit or loss, other comprehensive income and profit distribution, other
comprehensive income and other changes in owners' equity shall be transferred tothe investment income of the period to which the purchase date belongs, except forother comprehensive income arising from the investee's re-measurement ofchanges in net liabilities or net assets under defined benefit plans.
(2) Disposal of subsidiaries or business
① General treatment methods
During the reporting period, if the Company disposes of subsidiaries or business,the revenues, expenses and profits of such subsidiaries or business shall beincluded in the consolidated income statement from the beginning of the period tothe disposal date. The cash flow from the beginning period of the subsidiaries orbusiness to the disposal date shall be included in the consolidated statement of cashflows.When the Company loses the right of control over the investee due to disposal ofpart of the equity investments or other reasons, the remaining equity investmentsafter disposal will be re-measured by the Company at their fair value on the date ofloss of control. The difference between the sum of the consideration obtained fromdisposal of equities and the fair value of the remaining equities, less the sum of theshare of net assets and goodwill of the original subsidiaries calculated continuouslyfrom the purchase date or combination date according to the original shareholdingratio, shall be included in the investment income at the period of loss of control.Other comprehensive incomes related to the original equity investments insubsidiaries or changes in owner's equity other than net profit or loss, othercomprehensive income and profit distribution are transferred to the currentinvestment income at loss of control, except for other comprehensive incomearising from the investee's re-measurement of changes in net liabilities or net assetsunder defined benefit plans.Where the decrease in the Company's shareholding ratio leads to loss of controldue to the increase of capital by other investors in the subsidiaries, the accountingtreatment shall be carried out in accordance with the above principles.
② Disposal of subsidiaries step by step
Where the equity investments in subsidiaries are disposed of step by step throughmultiple transactions until the loss of control, and the terms, conditions andeconomic impact of the disposal on various transactions of the equity investmentsin subsidiaries meet one or more of the following circumstances, it generally
indicates that multiple transactions shall be taken as a package of transactions foraccounting treatment:
i. The transactions are concluded at the same time or under the consideration ofmutual effect;ii. The transactions can reach a complete business result only as a whole;iii. One transaction occurs on the precondition of the occurrence of one or moretransactions;iv. One single transaction is uneconomical but it is economical when consideredtogether with other transactions.If a transaction to dispose of an equity investment in a subsidiary up to the point ofloss of control is a package transaction, the Company accounts for the transactionas a single transaction to dispose of a subsidiary and lose control; However, beforethe loss of control, the difference between each disposal price and the share of netassets of the subsidiaries corresponding to the disposal of investments shall berecognized as other comprehensive income in the consolidated financial statementsand transferred to the current profit or loss at the time of loss of control.Where the disposal of various transactions from the equity investments insubsidiaries until the loss of control are not a package deal, before the loss ofcontrol, accounting treatment shall be carried out according to the relevant policieson partial disposal of equity investments of subsidiaries without loss of control;When loss of control, the accounting treatment shall be carried out in accordancewith the general treatment of the disposal of subsidiaries.
(3) Purchase of minority interest in the subsidiaries
The capital stock premium in the capital reserves in the consolidated balance sheetshall be adjusted at the difference between the long-term equity investmentsacquired by the Company for the purchase of minority interests and the share of netassets of the subsidiaries calculated continuously from the purchase date (orcombination date) according to the newly increased shareholding ratio; if thecapital stock premium in the capital reserves is insufficient to be offset, the retainedearnings shall be adjusted.
(4) Partial disposal of equity investments to the subsidiaries without loss of controlThe capital stock premium in the capital reserves in the consolidated balance sheetwill be adjusted at the difference between the disposal price obtained from partialdisposal of long-term equity investments to the subsidiaries without loss of control
and the share of net assets of the subsidiaries calculated continuously from thepurchase date or combination date corresponding to the disposal of the long-termequity investments; if the capital stock premium in the capital reserve is insufficientto be offset, the retained earnings will be adjusted.
7. Classification and accounting treatment method of joint venture arrangementsThe joint venture arrangements are divided into joint operation and joint ventures.When the Company is the joint venturer of the joint venture arrangements, enjoys therelevant assets and assumes the relevant liabilities of the arrangement, it is a jointoperation.The Company recognizes the following items related to the share of interests in the jointoperation, and carries out accounting treatment in accordance with the relevantaccounting standards for business enterprises:
(1) To recognize the assets held separately, and to recognize the assets held jointly by theshares of the Company;
(2) To recognize the liabilities held separately, and to recognize the liabilities held jointlyby the shares of the Company;
(3) To recognize the revenue arising from the sale of the share of output from jointoperations owned by the Company;
(4) To recognize the revenue arising from the sale of output from joint operations on ashare basis of the Company;
(5) To recognize expenses incurred separately and expenses incurred by joint operationson a share basis.See Note "III.XIII Long-term equity investments" for the accounting policies of theCompany's investment in the joint ventures.
8. Recognition criteria for cash and cash equivalents
For the purpose of preparing the statement of cash flows, the cash on hand and thedeposits that can be readily available for payment of the Company are recognized as cash.The term "cash equivalents" refers to short-term (maturing within three months fromacquisition) and highly liquid investments that are readily convertible to known amountsof cash and which are subject to an insignificant risk of change in value.
9. Translation of foreign currency transactions and financial statements denominated
in foreign currency
a) Foreign currency transactions
Foreign currency transactions of the Company are translated into RMB andrecorded in the recording currency translated at the spot exchange rates on thetransaction date.The foreign currency monetary items on the balance sheet date are translated at thespot exchange rate on the balance sheet date. The exchange differences arisingfrom the difference between the spot exchange rate on that date and the spotexchange rate on the initial recognition or the previous balance sheet date areincluded in current profit or loss, except for the exchange differences arising fromspecial borrowings in foreign currencies related to the acquisition and constructionof assets eligible for capitalization are recognized in profit or loss for the currentperiod in accordance with the principle of capitalization of borrowing costs.b) Conversion of foreign currency financial statements
The assets and liabilities items in the balance sheet shall be converted at the spotexchange rate on the balance sheet date. And the owner's equity shall be convertedat the spot exchange rate when the transactions occur except for the "undistributedprofits". The revenue and expense items in the income statement shall beconverted at the spot exchange rate when the transactions occur.On disposal of foreign operations, the translation difference of foreign currencyfinancial statements related to the foreign operations shall be transferred from theitem of owner's equity to the profit or loss of the current period of disposal.
10. Financial instruments
The financial instruments include the financial assets, financial liabilities and equityinstruments.a) Classification of financial instruments
According to the business model of the Company's management of financial assetsand the contract cash flows characteristics of financial assets, financial assets areclassified into: financial assets measured at amortized cost, the financial assetsmeasured at fair value through other comprehensive income (debt instruments) andfinancial assets measured at fair value through current profit or loss.If the business model is aimed at collecting contract cash flows and the contractcash flows are only for the payment of principal and interest based on theoutstanding principal amount, it is classified as financial assets measured at theamortized cost. Financial assets (debt instruments) whose business model is aimed
at both collecting contract cash flows and selling the financial assets, and whosecontract cash flows are only for the payment of principal and interest based on theoutstanding principal amount, are classified as the financial assets measured at fairvalue through other comprehensive income (debt instruments). Other financialassets are classified as financial assets measured at fair value through current profitor loss.For non-trading investments in equity instruments, the Company determineswhether to designate them as the financial assets (equity instruments) measured atfair value through other comprehensive income.Financial liabilities are classified at initial recognition as: financial liabilitiesmeasured at fair value through current profit or loss and financial liabilitiesmeasured at amortized cost upon initial recognition.The financial liabilities meeting one of the following conditions may be designatedas the financial liabilities measured at fair value through current profit or loss atinitial measurement:
1) Such designation can eliminate or significantly reduce accounting mismatches.
2) According to the enterprise risk management or investment strategies stated informal written documents, the Company manages and evaluates the performance ofthe financial liabilities portfolio or the portfolio of financial assets and financialliabilities on the basis of the fair value, and reports to the key officers within theenterprise on this basis.
3) The financial liabilities contain embedded derivative instruments that need to beseparately split.In accordance with the above conditions, such financial liabilities designated by theCompany mainly include: (specifically describe the circumstances specified)b) Recognition basis and measurement method of financial instruments
(1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include notes receivable, accountsreceivable, other receivables, long-term receivables, claim investments, etc., whichare initially measured at the fair value, and the relevant transaction costs areincluded in the initially recognized amount. The accounts receivable excluding thesignificant financing component and the accounts receivable that the Companydecides not to consider the financing component of less than one year shall beinitially measured at the contract price.
The interest calculated by using the effective interest method during the holdingperiod is included in the current profit or loss.Upon recovery or disposal, the difference between the purchase price obtained andthe book value of the financial assets is included in the current profit or loss.
(2) The financial assets measured at fair value through other comprehensiveincome (debt instruments)The financial assets measured at fair value through other comprehensive income(debt instruments) include receivables financing and other claim investments, etc.,which are initially measured at the fair value, and the relevant transaction costs areincluded in the initially recognized amount. Such financial assets are subsequentlymeasured at fair value. changes in fair value are included in the othercomprehensive income, except for interest income calculated using the effectiveinterest method, impairment loss or gains and foreign exchange profit or loss.Upon derecognition, the accumulated gains or losses previously included in theother comprehensive income shall be transferred out of the other comprehensiveincome and included in current profit or loss.
(3) Financial assets (equity instruments) measured at fair value through othercomprehensive incomeFinancial assets (equity instruments) measured at fair value through othercomprehensive income include other investments in equity instruments, which areinitially measured at the fair value, and the relevant transaction costs shall beincluded in the initially recognized amount. Financial assets shall be subsequentlymeasured at the fair value and changes in fair value shall be included in the othercomprehensive income. The dividends obtained shall be included in current profitor loss.Upon derecognition, the cumulative gains or losses previously included in the othercomprehensive income shall be transferred out of the other comprehensive incomeand included in the retained earnings.
(4) Financial assets measured at fair value through current profit or loss
Financial assets measured at fair value through current profit or loss include tradingfinancial assets, derivative financial assets, other non-current financial assets, etc.,which are initially measured at the fair value, and the relevant transaction costs are
included in current profit or loss. Financial assets shall be subsequently measuredat fair value, and changes in fair value shall be included in the current profit or loss.
(5) Financial liabilities measured at fair value through current profit or loss
Financial liabilities measured at fair value through current profit or loss includetrading financial liabilities, derivative financial liabilities, etc., which are initiallymeasured at the fair value, and the relevant transaction costs shall be included incurrent profit or loss. Financial liabilities shall be subsequently measured at fairvalue, and changes in fair value shall be included in current profit or loss.Upon derecognition, the difference between the book value and the considerationpaid shall be included in the current profit or loss.
(6) Financial liabilities measured at the amortized cost
Financial liabilities measured at amortized cost include short-term borrowings,notes payable, accounts payable, other payables, long-term borrowings, bondspayable and long-term payables, which are initially measured at fair value and therelevant transaction costs shall be included in the initially recognized amount.The interest calculated by using the effective interest method during the holdingperiod is included in the current profit or loss.Upon derecognition, the difference between the consideration paid and the bookvalue of the financial liabilities shall be included in the profit or loss of the currentperiod.c) Recognition basis and measurement method of transfer of financial assets
When a financial asset is transferred, the Company assesses the extent of the risksand rewards associated with the ownership of the financial assets it retains, anddeals with them according to the following circumstances:
(1) Where the Company transfers substantially all the risks and rewards related tothe ownership of a financial assets, the financial assets shall be derecognized, andthe rights and obligations arising from or retained in the transfer shall be separatelyrecognized as assets or liabilities.
(2) If the Company retains nearly all the risks and rewards related to the ownershipof the financial assets, the financial assets shall continue to be recognized.
(3) Where the Company neither transfers nor retains almost all the risk and rewardon the ownership of the financial assets (i.e. other circumstances except for (1) and
(2) of this Article), they shall be treated according to the following circumstancesaccording to whether the Company retains the control over the financial assets:
1) If the Company doesn't retain the control over the financial assets, the financialassets shall be derecognized, and the rights and obligations arising from or retainedin the transfer shall be separately recognized as assets or liabilities.
2) If the Company retains the control over the financial assets, it shall continue torecognize the relevant financial assets according to the extent of its continuousinvolvement in the transferred financial assets, and recognize the relevant liabilitiesaccordingly. The degree of continuous involvement in the transferred financialassets refers to the degree of the risk or reward of changes in the value oftransferred financial assets undertaken by the Company.The principle of substance over form shall be adopted when judging whether thetransfer of financial assets satisfies the above-mentioned derecognition criteria offinancial assets. The Company divides the transfer of financial assets into theoverall transfer and the partial transfer of financial assets.
(1) If the overall transfer of the financial assets meets the derecognition criteria, thedifference between the following two amounts shall be included in the currentprofit or loss:
1) The book value of the transferred financial assets on the derecognition date.
2) The sum of the consideration received from the transfer of financial assets andthe amount corresponding to the derecognized portion of the accumulated amountof changes in fair value originally and directly included in the other comprehensiveincome (the financial assets involved in the transfer are classified as the financialassets measured at fair value through the other comprehensive income).
(2) If the financial assets are partially transferred and the transferred portionsatisfies the derecognition criteria as a whole, the entire book value of the financialassets before the transfer shall be amortized between the derecognized portion andthe continuously recognized portion (in this case, the retained service assets shallbe deemed as part of the continuously recognized financial assets) according totheir respective relative fair values on the transfer date, and the underecognizedpart according to their respective relative fair values on the transfer date, and thenthe difference between the following two amounts shall be recorded into thecurrent profit or loss:
1) The book value of the derecognized portion on the derecognition date.
2) The sum of the consideration received from the derecognized portion and thecorresponding amount of derecognized portion in the accumulated amount of
changes in fair value originally included in the other comprehensive income (thefinancial assets involved in the transfer are classified as the financial assetmeasured at fair value through other comprehensive income).If the transfer of financial assets does not satisfy the derecognition criteria, thefinancial assets shall continue to be recognized, and the consideration receivedshall be recognized as a financial liability.d) Derecognition criteria of financial liabilities
If the current obligation of the financial liability or part thereof has been discharged,the financial liabilities or part thereof shall be derecognized. If the Company entersinto an agreement with a creditor to replace the existing financial liabilities byundertaking a new financial liabilities, and the new financial liabilities issubstantially different from the contract terms of the existing financial liabilities,the existing financial liabilities shall be derecognized, and the new financialliabilities shall be recognized at the same time.Where substantial modification is made to all or part of the contract terms of theexisting financial liabilities, the existing financial liabilities or part thereof shall bederecognized, and the financial liabilities with the modified terms shall berecognized as a new financial liability.When financial liabilities are derecognized in whole or in part, the differencebetween the book value of the derecognized financial liabilities and theconsideration paid (including non-cash assets transferred out or new financialliabilities borne) shall be included in the current profit or loss.If the Company repurchases part of the financial liabilities, the entire book value ofthe financial liabilities will be allocated on the repurchase date according to therelative fair value of the continuously recognized part and the derecognized portion.The difference between the book value allocated to the derecognized portion andthe consideration paid (including non-cash assets transferred out or new financialliabilities assumed) shall be included in the current profit or loss.e) Determination method of the fair value of financial assets and financial
liabilitiesWhere there is an active market for financial instruments, the fair value shall bedetermined based on the quoted price in the active market. Where there is no activemarket for financial instruments, the fair value thereof shall be determined by usingvaluation techniques. At the time of valuation, the Company adopts the techniques
that are applicable in the current situation and supported by enough available dataand other information, selects the input values that are consistent with the featuresof assets or liabilities as considered by market participants in relevant asset orliability transactions, and gives priority to use relevant observable inputs.Unobservable input values are used only when relevant observable input valuescannot be available or such values obtained are impracticable.f) Test method and accounting treatment method of financial assets impairment
The Company considers all reasonable and well-founded information, includingforward-looking information, and estimates the expected credit loss of financialassets measured at amortized cost and the financial assets measured at fair valuethrough other comprehensive income (debt instruments) in an individual orcombined manner. The measurement of expected credit loss depends on whetherthere has been a significant increase in credit risk of financial assets since initialrecognition.If the credit risk of the financial instrument has increased significantly since theinitial recognition, the Company shall measure its provision for losses at theamount equivalent to the expected credit loss of the financial instruments duringthe entire duration. If the credit risk of the financial instrument has not increasedsignificantly since the initial recognition, the Company measures its provision forlosses at the amount equivalent to the expected credit loss of the financialinstruments in the next 12 months. The increase or reversal amount of the provisionfor losses arising therefrom shall be included in the current profit or loss asimpairment loss or profit.Generally, if it is overdue for more than 30 days, the Company shall consider thatthe credit risk of the financial instrument has increased significantly, unless there isconclusive evidence to prove that the credit risk of the financial instrument has notincreased significantly since the initial recognition.If the credit risk of the financial instrument on the balance sheet date is low, theCompany considers that the credit risk of the financial instruments has notincreased significantly since the initial recognition.For notes receivable, accounts receivable, receivables financing, whethersignificant financing component is included or not, the Company always measuresits provision for losses at the amount equivalent to the expected credit loss duringthe entire duration.
For the lease receivables and the long-term receivables formed by the Companythrough the sale of goods or rendering of services, the Company chooses to alwaysmeasure its provision for losses at the amount equivalent to the expected credit lossduring the entire duration.For notes receivable, accounts receivable, other receivables, receivables financingand long-term receivables applicable to individual assessment, if there is objectiveevidence that they are impaired, separate impairment test shall be made; expectedcredit loss shall be recognized and provision for impairment shall be made; Fornotes receivable, accounts receivable, other receivables, receivables financing forwhich there is no objective basis for impairment, or when there is sufficientevidence that the expected credit loss cannot be evaluated at reasonable cost at thelevel of individual instruments, the Company divides the notes receivable, accountsreceivable, other receivable, receivables financing and long-term receivables intoseveral portfolios according to the characteristics of credit risk by reference to theexperience of historical credit losses, in combination with the current situation andthe judgment on future economic conditions, and calculates the expected credit losson the basis of the portfolio. The details are as follows:
(1) Notes receivable
| Name of portfolios | Methods of measuring credit losses |
| Bank acceptance bill of state-owned banks | For the notes receivable classified into bank acceptance bill portfolio, the management evaluates that such funds have low credit risk and low expected credit loss rate, so no provision for impairment is made; |
(2) Accounts receivable
| Name of portfolios | Methods of measuring credit losses |
| Receivables from electricity transactions | For accounts receivable classified as electricity trading, engineering operation and maintenance, and environmental protection services, our company refers to the experience of historical credit losses, combining with the current situation and the forecast of future economic conditions, and calculates the expected credit loss. |
| Receivables from project operation and maintenance | |
| Receivables from environmental protection services |
(3) Other receivables
| Name of portfolios | Methods of measuring credit losses |
| Portfolio of export tax rebate, refund upon collection of VAT and other taxes | Except for the portfolios of related parties within the consolidation scope, tax refunds receivable and other receivables without significant recovery risks, for other receivables classified into other portfolios, the Company |
| Portfolio of deposit, security deposit and reserve fund |
| Other receivables and temporary payments except for the above portfolios | calculates the expected credit loss by reference to the historical credit loss experience, combining the current situation and the forecast of future economic conditions, and by default risk exposure and the expected credit loss rate in the next 12 months or over the life. |
(4) Receivables financing
| Name of portfolios | Methods of measuring credit losses |
| Bank acceptance bill with lower credit risk | The expected credit loss is calculated by reference to historical credit loss experience, combined with current conditions and projections of future economic conditions, through default risk exposure and expected credit loss rate over the life. |
| Trade accptance bill |
11. Inventories
a) Classification of inventories
Inventories mainly include fuel, raw materials, etc.b) Pricing method of inventories dispatched
Inventories are measured at the weighted average method when dispatched.c) Basis for determining the net realizable value of different inventory categories
For commodity inventories for direct sale, including finished goods, stock
commodities and materials for sale, the net realizable value shall be recognized at
the estimated selling price less the estimated selling and distribution expenses and
the relevant taxes and surcharges of the inventories in the normal production and
operation process. For material inventories to be processed, the net realizable value
shall be recognized at the estimated selling price of finished goods less estimated
costs to completion, estimated selling and distribution expenses and relevant taxes
and surcharges in the normal production and operation process. The net realizable
value of the inventories held for the execution of the sales contract or service
contract shall be calculated on the basis of the contract price; if the quantity of the
inventories held is more than the quantity ordered in the sales contract, the net
realizable value of the excess inventories shall be calculated on the base of the
general selling price.
At the end of the period, the provision for inventory falling price reserves is made
on an individual basis. However, for inventories with large quantity and low unit
price, the provision for inventory falling price reserves shall be made according to
the inventory categories. For inventories related to the series of products
manufactured and sold in the same area, with the same or similar final use or
purpose, and difficult to be measured separately from other items, the provision for
inventory falling price reserves shall be made on a consolidated basis.d) Inventory system of inventories
Perpetual inventory system is adopted.e) Amortization method of low-cost consumables and packaging materials
(1) Low-value consumables adopt one-off amortization method;
(2) Packaging materials adopt one-off amortization method
12. Contract assets
Where the Company has transferred goods to the customer and has the right to receiveconsideration, and the right depends on factors other than the passage of time, it isrecognized as contract assets. The Company's right to receive consideration from thecustomer unconditionally (i.e. subject only to the passage of time) is separately presentedas accounts receivable.For the determination method and accounting treatment method of the Company'sexpected credit loss for contract assets, please refer to Note III.(X) 6. Test method andaccounting treatment method for impairment of financial assets
13. Long-term equity investments
a) Judgement criteria for common control and significant influence
The term "common control" refers to the control shared over an arrangement in
accordance with the relevant provisions, and the relevant activities of the
arrangement can be decided only after the unanimous consent of the participants
sharing the right of control. Where the Company and other joint ventures jointly
exercise common control on the investees and have the right to the net assets of the
investees, the investees shall be the joint ventures of the Company.
Significant influence refers to the power to participate in making decisions on the
financial and operating policies of an enterprise, but without the power to control
or common control the formulation of these policies with other parties. Where the
Company is able to exert significant influence on the investees, the investees shall
be the associates of the Company.b) Determination of the initial investment cost
(1) Long-term equity investments formed by business combination
Business combination under common control: if the Company makes payment in
cash, transfers non-cash assets or bears debts and issues equity securities as the
consideration for the business combination, the initial investment cost of the long-
term equity investments shall be the book value share of the owner's equity of the
combinee in the consolidated financial statements of the ultimate controller on thecombination date. Where control can be exercised over the investee under commoncontrol due to additional investment or other reasons, the initial investment cost ofthe long-term equity investments shall be determined at the book value share of thenet assets of the combinee in the consolidated financial statements of the ultimatecontroller on the combination date. The capital stock premium shall be adjustedaccording to the difference between the initial investment cost of the long-termequity investments on the combination date and the sum of the book value of thelong-term equity investments before the combination plus the book value of thenewly paid consideration for shares obtained on the combination date; if the sharepremium is insufficient to be offset, the retained earnings shall be offset.Business combination not under common control: the Company takes thecombination cost determined on the purchase date as the initial investment cost ofthe long-term equity investments. Where the investees not under common controlcan be controlled due to additional investment or other reasons, the sum of thebook value of the equity investment originally held and the newly increasedinvestment cost shall be recognized as the initial investment cost calculated underthe cost method.
(2) Long-term equity investments obtained by other means
For long-term equity investments acquired by making payments in cash, theactually paid purchase price shall be taken as the initial investment cost.Long-term equity investments obtained from the issuance of equity securities shallbe taken as the initial investment cost according to the fair value of the issuance ofequity securities.On the premise that the exchange of non-monetary assets has commercialsubstance and the fair values of both assets received and surrendered can bemeasured reliably, the initial investment cost of the long-term equity investmentsreceived are determined based on the fair values of the assets surrendered and therelevant taxes and surcharges payable, unless there is any conclusive evidence thatthe fair values of assets received are more reliable. For exchange of non-monetaryassets that do not meet the above prerequisites, the book value of the assetssurrendered and the relevant taxes and surcharges payable shall be taken as theinitial investment cost of the long-term equity investments received.For long-term equity investments acquired from debt restructuring, the entry value
shall be recognized at the fair value of the creditor's right waived, taxes and othercosts directly attributable to the asset, and the difference between the fair value ofthe creditor' s right waived and the book value shall be included in the currentprofit or loss.c) Subsequent measurement and recognition of profit or loss
(1) Long-term equity investments calculated by cost method
The Company adopts the cost method to account for the long-term equityinvestments of subsidiaries. Besides the actual price paid for acquisition ofinvestment or the cash dividends or profits contained in the consideration that havebeen declared but not yet distributed, the Company recognizes the currentinvestment income according to the cash dividends or profit declared to bedistributed according to the investees.
(2) Long-term equity investments calculated by equity method
For the long-term equity investments of associates and joint ventures, equitymethod shall be adopted. If the initial investment cost is greater than the differenceof the share of fair value of net identifiable assets of the investee at the time ofinvestment, the initial investment cost of the long-term equity investments shall notbe adjusted. The difference between the initial investment cost and the share of fairvalue of net identifiable assets of the investee at the time of investment shall beincluded in current profit or loss.The Company shall respectively recognize the investment income and the othercomprehensive income according to the net profit or loss realized by the investeesand the share of the other comprehensive income to be enjoyed or shared, andadjust the book value of the long-term equity investments. The book value of thelong-term equity investments shall be reduced correspondingly according to theprofits declared to be distributed by the investees or the part to be enjoyedcalculated by cash dividends; For other changes in owner's equity other than netprofit or loss, other comprehensive income and profit distribution of the investees,the book value of long-term equity investments shall be adjusted and included inowners' equity.When recognizing the share of investees net profit or loss that shall be enjoyed, theCompany shall recognize the net profit of the investees after adjustment based onthe fair value of the identifiable net assets investees when the investment isobtained and in accordance with the Company's accounting policies and accounting
period. During the period of holding the investment, if the consolidated financialstatements are prepared by the investees, it shall be accounted for on the basis ofthe net profit, other comprehensive income and the amount attributable to theinvestees in the changes in other owners' equity in the consolidated financialstatements.When the Company recognizes the losses incurred by the investees to be shared,the treatment shall be carried out in the following order: firstly, the book value ofthe long-term equity investments shall be offset. Secondly, if the book value of thelong-term equity investments is insufficient to offset, the investment losses shallcontinue to be recognized to the extent of other long-term equity book value thatsubstantially constitute the net investment in the investees to offset the book valueof long-term receivables and other items. Finally, after the above treatment, if theenterprise still undertakes additional obligations as agreed in the investmentcontract or agreement, the estimated liabilities shall be recognized according to theestimated obligations and included in the current investment loss.
(3) Disposal of long-term equity investments
For disposal of long-term equity investments, the difference between the bookvalue and the actual purchase price shall be included in the profit or loss of theperiod.For long-term equity investments accounted for using the equity method,accounting treatment shall be made for the part originally included in the othercomprehensive income according to the corresponding ratio on the same basis asthat for the investees to directly dispose of the relevant assets or liabilities whendisposing of the investment. Owners' equity recognized from investees changes inother owners' equity other than net profit or loss, other comprehensive income andprofit distribution shall be carried forward to the current profit or loss by ratio,except for other comprehensive income arising from the re-measurement of netliabilities under defined benefit plans or changes in net assets by the investee.Where common control or significant influence on the investees is lost due todisposal of part of equity investments or other reasons, the remaining equity afterdisposal shall be changed to be accounted for according to the recognition andmeasurement standards of financial instruments, and the difference between thefair value and the book value on the date of loss of common control or significantinfluence shall be included in the current profit or loss. For the other
comprehensive income of the original equity investments recognized by adoptingthe accounting by equity method, the accounting treatment shall be made on thesame basis for the direct disposal of the relevant assets or liabilities by theinvestees when the accounting by equity method is terminated. Owner's equityrecognized from the investee's changes in other owner's equity other than net profitor loss, other comprehensive income and profit distribution should all betransferred to the current profit or loss when the accounting by equity method isterminated.Where the Company loses the right of control over the investees due to the disposalof part of the equity investments, the decrease in the shareholding ratio of theCompany due to the increase of capital by other investors in the subsidiaries andother reasons, in the preparation of individual financial statements, if the remainingequity can exercise common control or significant influence on the investees, theequity method shall be adopted, and the remaining equity shall be deemed to havebeen adjusted by using the accounting by equity method since acquisition. Wherethe remaining equity cannot common control or exert significant influence on theinvestees, it shall be subject to accounting treatment in accordance with therelevant provisions on the recognition and measurement standards of financialinstruments, and the difference between its fair value on the date of loss of controland its book value shall be included in the current profit or loss.If the equity disposed of is acquired through business combination due toadditional investment and other reasons, when preparing individual financialstatements, if the remaining equity after disposal adopts the cost method or theaccounting by equity method, the other comprehensive income recognized from theuse of accounting by equity method for the equity investment held before theacquisition date and other owner's equity shall be carried forward in proportion. Ifthe remaining equity after disposal is changed to be accounted for according to therecognition and measurement standards of the financial instruments, the othercomprehensive income and other owner's equity shall be fully carried forward.
14. Investment properties
Investment properties refer to the real estates held for earning rentals or capitalappreciation, or both, including leased land use right, land use right held for transfer uponappreciation, and leased buildings (including self-constructed or developed buildings usedfor renting and buildings under construction to be used for renting in the future or in the
process of development).The Company adopts the cost model to measure the existing investment properties. Forinvestment properties measured under the cost model - buildings for lease shall adopt thesame depreciation policy as the fixed assets of the Company, and the land use right forlease shall be subject to the same amortization policy as the intangible assets.
15. Fixed assets
a) Conditions for recognizing fixed assets
Fixed assets refer to the tangible assets held for the purpose of producingcommodities, providing services, renting or business management, and the servicelife exceeds one fiscal year. The fixed assets shall be recognized when all thefollowing conditions are satisfied:
(1) It is probable that the economic benefits related to the fixed assets will flow tothe Company;
(2) The cost of the fixed assets can be measured reliably.
b) Method of depreciation
Depreciation of fixed assets is provided on a category basis by using the straight-line method, and the depreciation rate is determined according to the category offixed assets, estimated service life and estimated net residual value. If thecomponents of the fixed assets have different service life or provide economicbenefits for the enterprise in different ways, different depreciation rates or methodsshall be selected to provide for depreciation separately.The depreciation methods, depreciation lives, residual value rates and annualdepreciation rates of various types of fixed assets are as follows:
| Category | Method of depreciation | Depreciation life (year) | Residual value rate (%) | Annual depreciation rate (%) |
| Houses and buildings | Straight-line method | 20 years | 10 | 4.5 |
| Gas turbine generator unit of machinery equipment (Note) | Units-of-production method | 10 | ||
| Machinery equipment (except for gas turbine generator unit) | Straight-line method | 15 - 20 years | 10 | 4.5-6 |
| Means of transport | Straight-line method | 5 years | 10 | 18 |
| Others | Straight-line | 5 years | 10 | 18 |
| Category | Method of depreciation | Depreciation life (year) | Residual value rate (%) | Annual depreciation rate (%) |
| method |
Note: the gas turbine generator unit is depreciated by the workload method; that is, the depreciationamount of power generation per hour of the gas turbine generator unit is determined according to theequipment value, estimated net residual value rate and total estimated hours of power generation. Detailsare set out as follows:
| Company name | Fixed assets | Depreciation amount (RMB/hour) |
| The Company | No. 1 generator unit | 538.33 |
| No. 3 generator unit | 601.21 | |
| New electricity | No. 10 generator unit | 520.61 |
| Zhongshan Electric Power | No. 1 generator unit | 960.04 |
| No. 3 generator unit | 837.29 |
16. Projects under construction
The initial book value of construction in progress is stated at necessary expendituresincurred before preparing the asset to reach the working condition for its intended use.Where the constructed fixed assets have reached their intended state of use, but the finalaccounts for completion have not been handled, they shall be transferred into the fixedassets at the estimated value according to the project budget, construction cost or actualcost, etc. from the date when the assets reach the working condition for their expected use,and the depreciation of the fixed assets shall be provided in accordance with theCompany's fixed assets depreciation policy. After the final accounts for completion arehandled, the original provisional estimated value shall be adjusted according to the actualcost, but the depreciation already provided will not be adjusted.
17. Borrowing costs
a) Recognition principles for capitalization of borrowing costs
Borrowing costs, including interest on borrowings, amortization of discounts orpremiums on borrowings, auxiliary expenses and exchange differences arisingfrom foreign currency borrowings.Where the borrowing costs incurred by the Company can be directly attributable tothe acquisition and construction or production of assets eligible for capitalization,
such costs shall be capitalized and included in the costs of relevant assets. Otherborrowing costs are recognized as expenses at the amount incurred and included inthe profit or loss of the current period.Assets eligible for capitalization refer to the fixed assets, investment properties,inventories and other assets that can reach the working conditions for their intendeduse or sales only after a long period of acquisition, construction or productionactivities.The capitalization of borrowing costs shall commence when the followingconditions are simultaneously met:
(1) The asset disbursement has already occurred which includes expenditures in theform of cash payment, transferring non-cash assets, or assuming interest-bearingdebts for the purchase, construction or production of assets that meet the conditionsfor capitalization;
(2) The borrowing costs have been incurred;
(3) Acquisition, construction or production activities for preparing the assets readyfor their intended use or sale have begun.
b) During the capitalization of borrowing costs
Capitalization period refers to the period from the commencement of capitalizationto the cessation of capitalization of borrowing costs, excluding the period ofsuspending capitalization of borrowing costs;When the acquired and constructed or produced assets eligible for capitalizationhave reached the working conditions for their intended use or sale, thecapitalization of borrowing costs shall be ceased.When part of the acquired and constructed or produced assets eligible forcapitalization are completed and can be used separately, the capitalization of theborrowing costs shall be ceased in terms of such part of assets.Where all parts of the acquired and constructed or produced assets are completedseparately, but the assets cannot be used or sold externally until the overallcompletion, the capitalization of borrowing costs of such assets shall be ceasedupon the overall completion.
c) Period of suspension of capitalization
Where the acquisition and construction or production of assets eligible for
capitalization are interrupted abnormally and the interruption lasts for more thanthree consecutive months, the capitalization of borrowing costs shall be suspended;If the interruption is a necessary procedure for the acquired and constructed orproduced assets eligible for capitalization to reach the working conditions for theirintended use or sale, the borrowing costs shall continue to be capitalized. Theborrowing costs occurred during the interruption period are recognized as thecurrent profit or loss and continue to be capitalized until the acquisition,construction or production activities of the assets restart.
d) Calculation method of the rate and amount of capitalization of borrowing
costsAs for special borrowings borrowed for acquiring and constructing or producingassets eligible for capitalization, the capitalization amount of borrowing costsshould be recognized at the amount of borrowing costs of special borrowingsactually incurred in the current period, less the interest income of unusedborrowings deposited in bank or the investment income of temporary investment.As for general borrowings used for acquiring and constructing or producing assetseligible for capitalization, the amount of borrowing costs of general borrowings tobe capitalized should be calculated based on the weighted average of accumulatedexpenditure on assets in excess of special borrowings, multiplied by thecapitalization rate of used general borrowings. The capitalization rate is calculatedand recognized as per the weighted average interest rate of general borrowing.
18. Intangible assets
a) Valuation method of intangible assets
(1) The Company shall initially measure the intangible assets at cost whenobtaining the same;The costs of an externally acquired intangible asset comprise its purchase price,relevant taxes and any other expenditure directly attributable to bringing the assetto its intended use. If the purchase price of an intangible asset is delayed beyondthe normal credit conditions and is substantially in the nature of financing, the costof the intangible asset shall be determined on the basis of the present value of thepurchase price.For intangible assets obtained in debt restructuring by the debtor for repayment of
debts, the book-entry value shall be recognized at the fair value of the waivedcreditor's rights and taxes and other costs directly attributable to preparing theassets for their intended use. The difference between the fair value of the waivedcreditors' rights and the book value shall be included in the current profit or loss.On the premise that the exchange of non-monetary assets has commercialsubstance and the fair value of both the assets received and surrendered can bemeasured reliably, the book-entry value of the intangible assets received fromexchange of non-monetary assets is determined based on the fair value of the assetssurrendered, unless there is any conclusive evidence that the fair value of the assetsreceived is more reliable. If the exchange of non-monetary assets does not meet theabove criteria, the book value of the assets surrendered and the relevant taxespayable shall be recognized as the cost of the intangible assets received, and noprofit or loss will be recognized.
(2) Subsequent measurement
Analyze and judge the service life of the intangible assets when obtaining the same.Intangible assets with limited service life shall be amortized at the straight-linemethod within the period when it can bring economic benefits to the enterprise; Ifit is impossible to predict the period when the intangible assets can bring economicbenefits to the enterprise, they are deemed as intangible assets with uncertainservice life and shall not be amortized.
b) Estimated service life of intangible assets with limited service life
For intangible assets with limited service life, the accumulated amount of itsoriginal value less estimated net residual value and accrued provision forimpairment shall be evenly amortized by using the straight-line method within theestimated service life from the date when it is available for use. The intangibleassets with uncertain service life shall not be amortized.At the end of the period, the service life and amortization method of the intangibleassets with limited service life shall be reviewed, and any change shall be handledas a change in accounting estimates.
c) Basis for determining intangible assets with uncertain service life and the
procedures for reviewing the service lifeThe service life of intangible assets with uncertain service life shall be reviewed,
and if there is evidence that the period for the intangible assets to bring economicbenefits to the enterprise is foreseeable, the service life shall be estimated andamortized in accordance with the amortization policy of intangible assets withlimited service life.
d) Specific criteria for classifying research and development stages
Internal research and development expenditures of the Company include thoseincurred in the research stage and those in the development stage.Research stage: the stage when creative and planned investigations and researchactivities are carried out to acquire and understand new scientific or technologicalknowledge.Development stage: a stage in which research results or other knowledge areapplied to a plan or design for obtaining new or substantially improved materials,apparatuses and products prior to commercial manufacture or use.Specific criteria for development expenditures eligible for capitalizationExpenditures in the development stage of an internal research and developmentproject shall be recognized as intangible assets when all the following conditionsare met:
1. It is technically feasible to complete the intangible assets so that they can beused or sold;
2. It has the intention to complete the intangible assets and use or sell them;
3. The means of generating economic benefits by intangible assets, including beingable to prove that there is a market for the products produced by applying theintangible assets or the intangible assets having their own market, and intangibleassets to be used internally, being able to prove their usefulness;
4. With the support of sufficient technology, financial resources and otherresources, it is able to complete the development of the intangible assets, and it isable to use or sell the intangible assets;
5. The expenditures attributable to the intangible assets in the development stagecan be measured reliably.
19. Impairment of long-term assets
For long-term equity investments, investment properties, fixed assets, construction inprogress, intangible assets with limited service life and other long-term assets measured at
cost model, if there is any indication of impairment on the balance sheet date, animpairment test shall be conducted. If the results of the impairment test show that therecoverable amount of the assets is lower than the book value, the provision forimpairment shall be made at the difference and included in the impairment loss. Therecoverable amount is the higher of the net amount of the asset's fair value less thedisposal expenses and the present value of the asset's estimated future cash flow. Theprovision for asset impairment shall be calculated and recognized on the basis ofindividual assets. If it is difficult to estimate the recoverable amount of the individualassets, the recoverable amount of the asset group shall be determined at the asset group towhich the assets belong. The asset group is the minimum asset group that canindependently generate cash inflow.Goodwill, intangible assets with uncertain service life and intangible assets that have notreached the serviceable condition shall be tested for impairment at least annually at yearend.If the Company conducts an impairment test on goodwill, the book value of goodwillarising from the business combination shall be amortized to the relevant asset group by areasonable method as of the purchase date. If it is difficult to apportion to the relevantasset group, it shall be apportioned to the relevant portfolio of asset groups. When theCompany amortizes the book value of goodwill, it shall amortize it according to therelative benefits that the relevant asset group or portfolio of asset groups can obtain fromthe synergy effect of business combination, and a goodwill impairment test shall beperformed on this basis.When an impairment test is performed on the relevant asset group or portfolio of assetgroups containing goodwill, if there is any indication that the asset group or portfolio ofasset groups related to the goodwill may be impaired, the asset group or portfolio of assetgroups excluding goodwill shall be tested for impairment first, and the recoverableamount shall be calculated, and compared with the relevant book value to recognize thecorresponding impairment loss. Then an impairment test shall be performed on the assetgroup or portfolio of asset groups containing goodwill and compare the book value ofthese relevant asset group or portfolio of asset groups (including the book value of thegoodwill apportioned) with their recoverable amount. If the recoverable amount of therelevant asset group or portfolio of asset groups is lower than their book value, theimpairment loss of goodwill will be recognized. The above-mentioned asset impairmentloss will not be reversed in subsequent accounting periods once recognized.
20. Long-term deferred expenses
Long-term deferred expenses of the Company refer to the expenses that have been paidbut have a benefit period of more than one year (excluding one year). Long-term deferredexpenses are amortized by stages according to the benefit period of expense items. If anitem of long-term deferred expenses cannot benefit the subsequent accounting periods, theamortized value of the item that has not been amortized shall be fully transferred to thecurrent profit or loss.
21. Contract liabilities
Contract liabilities refer to the obligations of the Company to assign goods or services tocustomers for which the Company has received or shall receive consideration from thecustomers. The contract assets and contract liabilities under the same contract shall bepresented on a net basis.
22. Employee compensation
a) Accounting treatment of short-term compensation
During the accounting period when employees provide services for the Company,the Company recognizes short-term compensation actually incurred as liabilitiesand includes it in the current profit or loss or related asset costs.The social insurance premiums and housing provident funds paid by the Companyfor employees, as well as labor union dues and employee education fundswithdrawn in accordance with the provisions, shall be calculated and determinedaccording to the prescribed accrual basis and accrual ratio during the accountingperiod when employees provide services for the Company.If the employee welfare expenses are non-monetary benefits and can be reliablymeasured, they shall be measured at fair value.
b) Accounting treatment of post-employment benefits
(1) Defined contribution plans
The Company pays basic endowment insurance and unemployment insurance foremployees according to the relevant provisions of the local government. During theaccounting period when employees provide services for the Company, the amountpayable calculated at the payment base and the ratio as stipulated in the local
provisions is recognized as liabilities and included in the current profit or loss orrelated asset costs.In addition to the basic endowment insurance, the Company has also set upenterprise annuity system (supplementary endowment insurance)/corporate annuityplan in accordance with relevant national policies on enterprise annuity system.The Company pays premiums to the local social insurance institutions/annuity planat a certain ratio of the total wages of employees, and the corresponding expensesare included in the current profit or loss or related asset costs.
(2) Defined benefit plans
According to the formula determined by the expected cumulative welfare unitmethod, the Company attributes the welfare obligations arising from the definedbenefit plans to the period during which the employees provide services, andincludes them in the current profit or loss or relevant assets costs.The deficit or surplus arising from the present value of obligations under thedefined benefit plans less the fair value of assets under the defined benefit plans isrecognized as net liabilities or net assets under defined benefit plans. If there is asurplus in the defined benefit plans, the Company shall measure the net assets ofdefined benefit plans at the lower of the surplus in the defined benefit plans and theupper limit of assets.All obligations under the defined benefit plans, including those expected to be paidwithin 12 months after the end of the annual reporting period in which theemployees provide services, are discounted according to the market yield oftreasury bonds or high-quality corporate bonds in the active market that match theterm and currency of the obligations under the defined benefit plans on the balancesheet date.Service costs arising from the defined benefit plans and the net interest on the netliabilities or net assets under defined benefit plans are included in the current profitor loss or related asset costs. The changes arising from the re-measurement of netliabilities or net assets under defined benefit plans are included in the othercomprehensive income, and will not be reversed to the profit or loss in thesubsequent accounting periods. When the original defined benefit plans terminates,the part originally included in the other comprehensive income will be fully carriedforward to the undistributed profits to the extent of equity.Upon the settlement of defined benefit plans, the settlement gains or losses shall be
recognized according to the difference between the present value of obligationsunder the defined benefit plans and the settlement price determined on thesettlement date.
c) Accounting treatment of dismissal welfare
When the Company cannot unilaterally withdraw the dismission welfare provideddue to the plan to terminate labor relations or the layoff proposal, or recognizes thecosts or expenses related to the restructuring involving the payment of dismissionwelfare (whichever is earlier), the employee compensation liabilities arising fromthe dismission welfare are recognized and included in the current profit or loss.
23. Estimated liabilities
a) Criteria for recognition of estimated liabilities
The obligations related to contingencies such as litigation, debt guarantee, onerouscontract and restructuring matters shall be recognized as estimated liabilities by theCompany when all the following conditions are met:
(1) The obligation is the current obligation assumed by the Company;
(2) The fulfillment of the obligation is likely to lead to outflow of economicbenefits from the Company;
(3) The amount of the obligation can be measured in a reliable way.
b) Measurement methods of various types of estimated liabilities
The Company's estimated liabilities shall be initially measured at the best estimateof the expenses required to fulfill the relevant present obligations.When determining the best estimate, the Company shall comprehensively considerthe risks, uncertainties and time value of money and other factors related tocontingencies. For those that have a significant impact on the time value of money,the best estimate shall be determined by discounting the relevant future cashoutflows.The best estimate will be handled according to the following circumstances:
If there is a continuous range (or interval) of the required expenses, and theprobabilities of occurrence of all the outcomes within this range are the same, thebest estimate shall be determined according to the middle value of this range, thatis, the average of the upper and lower limit amounts.
If there is no continuous range (or interval) of the required expenses, or theprobabilities of occurrence of all the outcomes within this range are not the samealthough there is a continuous range, if the contingency involves a single item, thebest estimate shall be determined according to the most likely amount; If thecontingency involves more than one item, the best estimate shall be calculated anddetermined based on various possible outcomes and relevant probabilities.If all or part of the expenses required by the Company to pay off the estimatedliabilities are expected to be compensated by a third party, the compensationamount shall be separately recognized as an asset when it is basically certain that itcan be received, and the recognized compensation amount shall not exceed thebook value of the estimated liabilities.
24. Revenue
General principles
The Company has fulfilled the performance obligations in the contract; namely, therevenue is recognized when the customer obtains the right of control of the relevantgoods or services. Performance obligations refer to the contractual commitments inwhich the Group transfers clearly distinguishable goods or services to thecustomers. "Obtaining the right of control of the relevant goods or services" refersto the ability to dominate the use of the goods or the provision of the services andobtain almost all the economic benefits from them.If one of the following conditions is met, it is the performance obligation to befulfilled within a certain period of time, and the Company recognizes the revenuewithin a certain period of time according to the performance progress: (1) thecustomer obtains and consumes the economic benefits brought by the Company'sperformance at the same time as the Company performs the contract; (2) Thecustomer can control the goods under construction during the performance of theCompany; (3) The goods produced during the performance of the Company haveirreplaceable uses, and the Company has the right to collect payment for theaccumulated part that has been completed so far during the entire contract period.Otherwise, the Company will recognize revenue at the time when the customerobtains the right of control of the relevant goods or services.Variable considerationSome of the contracts between the Company and its customers have arrangements
for sales rebates, quantity discounts, commercial discounts, performance bonusesand claims, which form the variable consideration. The Company determines thebest estimate of the variable consideration according to the expected value or themost likely amount, but the transaction price including the variable considerationdoes not exceed the amount of accumulated recognized revenue which is unlikelyto be significantly reversed when the relevant uncertainty is eliminated.Significant financing componentIf there is a significant financing component in the contract, the Companydetermines the transaction price according to the payable amount that is assumed tobe paid in cash by the customer when the customer obtains the right of control ofthe goods or services. The difference between the transaction price and the contractconsideration is amortized over the contract period by using the effective interestmethod.On the commencement date of the contract, if the enterprise expects that theinterval between the customer's acquisition of the right of control of the goods andthe customer's payment will not exceed one year, significant financing componentsexisting in the contract will not be considered.Non-cash considerationIf the customer pays non-cash consideration, the Company shall determine thetransaction price according to the fair value of the non-cash consideration. If thefair value of the non-cash consideration cannot be reasonably estimated, theCompany shall indirectly determine the transaction price by reference to theindividual selling price of the goods promised to be transferred to the customer.Where the fair value of a non-cash consideration changes due to reasons other thanthe form of consideration, it shall be accounted for as a variable consideration inaccordance with the relevant provisions.Consideration payable to customersFor the consideration payable to customers, the Company shall offset thetransaction price of the consideration payable to customers, and offset the currentrevenue at the later of the recognition of the relevant revenue or the commitment topay the consideration, unless the consideration payable is for the purpose ofobtaining other clearly distinguishable goods from the customers.Sales with sales return clausesFor sales with sales return clauses, when the customer obtains the right of control
of relevant goods, the Company recognizes the revenue according to the amount ofconsideration expected to receive due to the transfer of goods to the customer (i.e.,excluding the amount expected to be refunded due to the sales return) andrecognizes liabilities according to the amount expected to be returned due to thesales return; At the same time, the balance of the book value of the expected goodsto be returned at the time of transfer after deducting the expected cost of recoveringthe goods (including the impairment of the value of the returned goods) isrecognized as an asset. The net amount after deducting the cost of the above assetwill be transferred as cost based on the book value of the transferred goods. Oneach balance sheet date, the future sales returns are re-estimated, and if there is anychange, it will be conducted with accounting treatment as a change in accountingestimate.Sales with quality assurance clausesFor sales with quality assurance clauses, if the quality assurance provides aseparate service in addition to assuring the customer that the goods or services soldmeet the established standards, the quality assurance constitutes a singleperformance obligation. Otherwise, the Company shall conduct accountingtreatment on the quality assurance responsibilities in accordance with theAccounting Standards for Business Enterprises No.13 - Contingencies.Principal responsible person and agentThe Company determines whether it is the principal responsible person or the agentwhen engaging in the transaction based on whether it has the right of control of thegoods or services before transferring them to the customers. If the Company is ableto control the goods or services before transferring the goods or services to thecustomers, the Company is the principal responsible person, and the revenue isrecognized according to the total consideration received or receivable. Otherwise,the Company, as the agent, shall recognize revenue according to the amount ofcommission or service fee expected to receive, which shall be determinedaccording to the net amount of the total consideration received or receivable afterdeducting the price payable to other relevant parties, or according to the establishedamount or ratio of commission.Sales with additional call option for customersFor sales with additional call option for the customer, the Company evaluateswhether this option provides the customer with a significant right. If an enterprise
provides significant rights, it shall, as a single performance obligation, allocate thetransaction price to the performance obligations in accordance with the relevantprovisions of the standards, and recognize the corresponding revenue when thecustomer exercises the call option to obtain the right of control of the relevantgoods in the future, or when the option expires. If the separate selling price of theadditional call option for customer cannot be directly observed, the Company shallmake a reasonable estimate after comprehensively considering all relevantinformation such as the difference between the discounts that the customer canobtain if he/she exercises or does not exercise the option, the possibility that thecustomer exercises the option, etc. Although the customer has the option topurchase additional goods, the price at the time when the customer exercises theoption to purchase the goods reflects the separate selling price of these goods and itshall not be regarded as that the Company has provided the customer with asignificant right.Grant of intellectual property license to customersIf the intellectual property license is granted to the customer, the Company shallevaluate whether the intellectual property license constitutes a single performanceobligation in accordance with the relevant provisions of the Standards, and if itconstitutes a single performance obligation, it shall further determine whether it isperformed within a certain period of time or at a certain point in time.When the following conditions are met at the same time, the relevant revenue shallbe recognized as a performance obligation to be fulfilled within a certain period oftime. Otherwise, the relevant revenue is recognized as a performance obligationfulfilled at a certain point in time:
(I) The contract requires or the customers can reasonably expect that the enterprisewill engage in activities that have a significant impact on the intellectual property;(II) The activity will have a favorable or unfavorable impact on the customers;(III) The activity will not result in the transfer of a certain goods to the customer.Transactions of sales with buyback agreementsFor the transactions of sales with buyback agreements, the Company conductsaccounting treatment respectively under the following two circumstances:
(I) If the Company has the obligation to repurchase or the Company enjoys theright to repurchase due to the existence of forward arrangements with customers,the Company shall carry out corresponding accounting treatment as a lease
transaction or a financing transaction. In this case, if the repurchase price is lowerthan the original selling price, it shall be deemed as a lease transaction, andaccounting treatment shall be carried out in accordance with the relevant provisionsof the Standards; If the repurchase price is not lower than the original selling price,it shall be regarded as a financing transaction, and the financial liabilities shall berecognized when the customer's payment is received, and the difference betweenthe payment and the repurchase price shall be recognized as interest expenses, etc.during the repurchase period. If the Company fails to exercise the repurchase rightupon expiration, the financial liabilities shall be derecognized upon the expirationof the repurchase right, and the revenue shall be recognized at the same time.(II) If the Company has the obligation to repurchase the goods at the request of thecustomer, it shall assess whether the customer has a significant economicmotivation to exercise the right of request on the commencement date of contract.If the customer has a significant economic motivation to exercise the right ofrequest, the enterprise shall take the sales with buyback agreements as a leasetransaction or a financing transaction and conduct accounting treatment inaccordance with the provisions of Item 1 of this Article; Otherwise, the Companywill treat it as a sales transaction with a sales return clause, and conduct accountingtreatment in accordance with the relevant provisions of the Standards.Rights not exercised by customersIf the Company receives the payment for sales of goods from customers in advance,it shall first recognize the payment as the liabilities, and then transfer it to therevenue when the relevant performance obligations are fulfilled. When the advancepayment does not need to be returned, and the customer may waive all or part ofhis/her contractual rights, the Company expects to be entitled to the amount relatedto the contractual rights waived by the customer, the above amount shall berecognized as the revenue at the ratio to the mode of the customer exercising thecontractual rights; Otherwise, the Company can only transfer the relevant balanceof the above liabilities to revenue when the possibility of the customer requiring itto perform the remaining performance obligations is extremely low.Initial costs no to be returned.The non-refundable initial costs collected by the Company from the customer onthe commencement date of the contract (or close to the commencement date) shallbe included in the transaction price, and the Company shall assess whether the
initial costs are related to the transfer of the promised goods to the customer. If theinitial costs are related to the transfer of the promised goods to the customer, andthe goods constitute a single performance obligation, the Company recognizes therevenue at the transaction price allocated to the goods when transferring the goods;If the initial costs are related to the goods promised to transfer to the customer, butthe goods do not constitute a single performance obligation, the Company willrecognize the revenue at the transaction price allocated to the single performanceobligation when the single performance obligation containing the goods is fulfilled.If the initial costs are not related to the goods promised to transfer to the customer,it shall be used as an advance payment for the goods to be transferred in the futureand shall be recognized as revenue when the goods are transferred in the future.If the Company has collected an initial cost that does not need to be returned andshall carry out initial activities to perform the contract, but these activities do nottransfer the promised goods to the customer, the initial cost is related to the goodspromised to be transferred in the future, and shall be recognized as revenue whentransferring the goods in the future. The Company does not consider these initialactivities when determining the progress of the contract. The Company'sexpenditures for such initial activities shall be recognized as an asset or included inthe current profit or loss in accordance with the relevant provisions of theStandards.
Specific principles
The Company has fulfilled the performance obligations in the contract; namely, therevenue is recognized when the customer obtains the right of control of the relevantgoods or services. "Obtaining the right of control of the relevant goods or services"refers to the ability to dominate the use of the goods or the provision of the servicesand obtain almost all the economic benefits from them.
(1) Revenue from sales of goods
The sales contract between the Company and its customers generally includes onlythe performance obligations of the transferred goods. The Company usuallyrecognizes revenue at a certain point in time on the basis of comprehensiveconsideration of the following factors: obtaining the current right to receivepayment for the goods, the transfer of major risks and rewards in the ownership ofthe goods, the transfer of the legal ownership of the goods, and the transfer of the
physical asset of the goods and the customer's acceptance of the goods.Revenue from sales of electricityThe Company produces electric energy through thermal power and sells it byintegrating it into the Guangdong power grid. For sales of electricity, the Companyshall recognize revenue when the electric energy has been produced and thestatistical form of net energy output confirmed by the electric power bureau hasbeen obtained.
(2) Revenue from the provision of service
Service contracts between the Company and the customers usually includeperformance obligations such as operation and maintenance services, labor services,etc.,The Company evaluates the contract on the contract commencement date,identifies each single performance obligation contained in the contract, anddetermines whether each individual performance obligation is performed within acertain period or at a certain time point. If one of the following conditions is met, itis a performance obligation performed within a certain period of time and theCompany recognizes revenue within a period of time according to the progress ofthe contract:
(1) The customer obtains and consumes the economic benefits brought by theCompany's performance at the same time as the Company's performance;
(2) The customer can control the goods under construction during the performanceof the Company;
(3) The goods produced during the performance of the Company have irreplaceableuses, and the Company has the right to collect payment for the accumulated partthat has been completed so far during the entire contract period. Otherwise, theCompany will recognize revenue at the time when the customer obtains the right ofcontrol of the relevant goods or services.○1Recognition of revenue from services provided by the Environmental ProtectionCompany:
The Company recognizes revenue based on the obtained sludge treatmentsettlement statement jointly confirmed with the Transportation Company, the waterpurification unit, and the Company.○2Specific standards for revenue recognition of the Engineering Company:
Commissioning projects: when the commissioning is successful, obtain the
confirmation of successful commissioning, and recognize revenue according to thecontract;Operation and maintenance, management projects: monthly revenue is temporarilyestimated and recognized based on attendance time and labor prices of attendants,and the temporarily estimated revenue will be adjusted after obtaining the monthlystatement confirmed by the supplier's stamp and signature, the progressconfirmation letter, and the attendance sheet.
25. Contract cost
Cost of obtaining the contractIf the incremental cost (that is, the cost that would not be incurred without obtaining thecontract) incurred by the Company to obtain the contract is expected to be recovered, itwill be recognized as an asset, amortized on the same basis as the revenue recognition ofgoods or services related to the asset for sales, and be included in the current profit or loss.If the asset amortization period does not exceed one year, the asset shall be included in thecurrent profit or loss when it occurs. Other expenses incurred by the Group to obtain thecontract will be included in the current profit or loss when incurred, except for thoseclearly borne by the customer.Cost of fulfilling the contractThe cost incurred by the Company for the performance of the contract that does not fallwithin the scope of other accounting standards for business enterprises except the revenuestandard and meets the following conditions at the same time is recognized as an asset: (1)the cost is directly related to a current or expected contract; (2) the cost increases theresources of the Group for fulfilling the performance obligations in the future; (3) Thecost is expected to be recovered. The above-mentioned assets are amortized on the samebasis as the recognition of the revenue of goods or services related to the asset andincluded in the current profit or loss.Contract cost impairmentWhen the Company determines loss of impairment of assets related to the contract cost, itfirst determines the impairment loss of other assets related to the contract that areconfirmed in accordance with other relevant accounting standards for business enterprises.Then, if the book value is higher than the difference between the remaining considerationexpected to be obtained by the Company from the transfer of the asset-related goods andthe estimated cost to be incurred for the transfer of the relevant goods, the excess shall be
subject to provision for impairment and recognized as the asset impairment loss.If the factors of impairment in the previous period change after that, making the aforesaiddifference higher than the book value of the asset, the provision for asset impairment thathas been withdrawn shall be reversed and included in the current profit or loss, but thebook value of the asset after reversal shall not exceed the book value of the asset on thereversal date assuming that no provision for impairment is made.
26. Government subsidies
a) Change type
Government subsidies are monetary and non-monetary assets obtained by theCompany from the government for free. They can be divided into governmentsubsidies related to assets and government subsidies related to revenue.Government subsidies related to assets are government subsidies that the Companyacquires for acquisition, construction, or otherwise forms long-term assets.Government subsidies related to revenue refer to government subsidies other thangovernment subsidies related to assets. Government subsidies related to revenuerefer to those other than government subsidies related to assets.
b) Timing of recognition
If there is evidence at the end of the period that the Company can meet the relevantconditions stipulated in the financial support policy and is expected to receivefinancial support funds, the government subsidies will be recognized according tothe amount receivable. In addition, all government subsidies shall be recognizedwhen actually received.The government subsidies considered as monetary assets are measured at theamount received or receivable. If government subsidies are non-monetary assets,they will be measured at fair value. If the fair value cannot be obtained reliably, itshall be measured at a nominal amount (RMB1). Government subsidies measuredaccording to the nominal amount are directly included in current profit or loss.
c) Accounting treatment
Government subsidies related to assets are used to offset the book value of relevantassets or recognized as deferred income. If they are recognized as a deferredincome, they will be included in the current profit or loss by stages according to areasonable and systematic method within the service life of the relevant assets (if
they are related to the daily activities of the Company, they are included into otherincome; if irrelevant to the daily activities of the Company, they will be includedinto non-operating revenue).If the government subsidies related to revenue are used to compensate theCompany's relevant costs or losses in subsequent periods, they are recognized asdeferred income, and will be included in the current profit or loss (if they arerelated to the Company's daily activities, they are included in other income; ifirrelevant to the Company's daily activities, they are included into the non-operating revenue) or offset the relevant costs or losses during the period when therelevant costs or losses are recognized; Those used to compensate the Company forthe relevant costs or losses incurred will be directly included in the current profit orloss (those related to the Company's daily activities will be included in otherincome; those irrelevant to the Company's daily activities will be included in thenon-operating revenue) or used to offset the relevant costs or losses.The discount interest of the policy-based preferential loans obtained by theCompany will be accounted for respectively according to the following twosituations:
(1) If the finance department appropriates the discount interest funds to the lendingbank, and the lending bank provides the loan to the Company at the policy-basedpreferential interest rate, the Company shall take the loan amount actually receivedas the entry value of the loan, and calculate the relevant borrowing costs accordingto the loan principal and the policy-based preferential interest rates.
(2) If the finance department directly appropriates the discount interest funds to theCompany, the Company will offset the corresponding borrowing costs with thecorresponding discount interest.
27. Deferred tax assets and deferred tax liabilities
Deferred tax assets are recognized for deductible temporary differences to the extent thatthey do not exceed the taxable income probably obtained in the future period that can beused to offset the deductible temporary differences. For deductible loss and tax creditsthat can be carried forward to subsequent years, the corresponding deferred tax assetsarising therefrom are recognized to the extent that future taxable income will be probableto be available against deductible losses and tax credits.Taxable temporary differences are recognized as deferred tax liabilities, except for specialcircumstances.
Special circumstances in which deferred tax assets or deferred tax liabilities shall not berecognized include: the initial recognition of goodwill. Other transactions or mattersexcluding business combinations, which affect neither accounting profits nor taxableincome (or deductible loss) when occurred.If the Company has the legal right of netting and intends to settle in net amount or toobtain assets and discharge liabilities simultaneously, the income tax assets and incometax liabilities of the Company for the current period shall be presented based on the netamount after offset.When the Company has the legal right to settle current income tax assets and currentincome tax liabilities on a net basis, and the deferred tax assets and deferred tax liabilitiesare related to the income tax levied by the same tax collection authority on the same taxentity or to different tax entities, but in each future period when important deferred taxassets and liabilities are reversed, the involved tax entity intends to settle current incometax assets and liabilities on a net basis or to acquire assets and settle liabilities at the sametime, deferred tax assets and deferred tax liabilities are listed and reported on a net basisafter offsetting.
28. Lease
Leases refers to a contract in which the lessor transfers the right to use the asset to thelessee for consideration within a certain period of time.a) The Company as the lessee
The Company recognizes the right-of-use assets on the lease commencement dateand recognizes the lease liabilities at the present value of the outstanding leasepayments. Lease payments include fixed payments and payments to be made incircumstances where it is reasonably certain that the call option or the right toterminate the lease will be exercised. The variable rent determined based on acertain ratio of sales is not included in the lease payment, and is included in thecurrent profit or loss when it actually occurs.The Company's right-of-use assets include leased houses and buildings, machineryequipment, means of transport, computers and electronic equipment, etc.For short-term leases with a lease term of less than 12 months and low-value assetleases with a low value when a single asset is brand-new, the Company chooses notto recognize the right-of-use assets and lease liabilities, and includes the relevantrental expenses into current profit or loss or the relevant asset cost in each period of
the lease term according to the straight-line method.
b) The Company as the lessor
Leases that substantially transfer substantially all of the risks and rewardsassociated with the ownership of leased assets are finance leases Other leases areoperating leases.i. Operating leaseWhen the Company operates leased buildings, machinery and equipment, andmeans of transport, the rental revenue from operating leases shall be recognized inaccordance with the straight-line method during the lease term. The Company willinclude variable rent determined based on a ratio of sales in rental revenue when itactually incurs.ii. Financing lease
On the lease commencement date, the Company recognizes the finance leasereceivable for finance leases and derecognizes related assets. The Companypresents the finance lease receivables as long-term receivables, and the financelease receivables received within one year (including one year) from the balancesheet date are presented as non-current assets due within one year.
29. Special reserves
The Group includes the work safety costs in accordance with the national provisions inthe cost of the related products or the current profit or loss and in the account of "specialreserves" at the same time. When the Group uses the special reserves, the special reservesshall be directly offset if it belongs to the expense. If fixed assets are formed, they shall berecognized as fixed assets when the relevant assets reach the working condition for theirintended use. Meanwhile, special reserves shall be offset according to the costs of fixedassets and the accumulated depreciation of the same amount shall be recognized.Depreciation of such fixed assets will not be made in subsequent periods.
30. Changes in significant accounting policies and accounting estimates
a) Changes in significant accounting policies
There were no changes in significant accounting policies during the reportingperiod.
b) Changes in significant accounting estimates
There were no changes in significant accounting estimates during the reportingperiod.
IV. Taxation
1. Major types of tax and tax rates
| Type of tax | Taxation basis | Tax rate |
| VAT | The output tax is calculated on the basis of the sales of goods and the taxable service income calculated in accordance with the tax law, and the difference shall be the VAT payable after deducting the deductible input tax for the current period. | 13%、9%、6%、5%、3% |
| Urban maintenance and construction tax | Paid on the basis of the actual VAT and consumption tax paid | 7% |
| Education surcharges | Paid on the basis of the actual VAT and consumption tax paid | 3% |
| Local education surcharges | Paid on the basis of the actual VAT and consumption tax paid | 2% |
| Corporate income tax | Levied based on taxable income | 25%、15%、16.5%、17% |
| Urban and rural land use tax | Calculated and paid at RMB 2-8/square meter for the actual land area occupied by the industrial land in Nanshan District, Shenzhen; Calculated and paid at RMB1/square meter for the actual land area occupied by the industrial land in Zhongshan. |
Remarks: refer to explanations (II) and (III) below for the rate of corporate income tax
2. Notes to the rate of income tax of the corporate income tax taxpayers
| Name of taxpayer | Income tax rate |
| The Company | 15% |
| New Power Company | 25% |
| Shen Nan Dian Engineering Company | 15% |
| Server Company | 25% |
| Shen Nan Dian Environment Protection Company | 25% |
| Shen Nan Dian Zhongshan Company | 25% |
| Singapore Company | 17% |
| Shenzhen Nanshan Power Warehousing Company | 25% |
| Xindesheng Company | 16.5% |
3. Preferential tax policies and basis
1. Preferential policies for corporate income tax:
(1) According to the Record-filing List of the Second Batch of High-tech EnterprisesRecognized by Shenzhen in 2021, Shenzhen Nanshan Power Co., Ltd. has obtained theNational High-tech Enterprise Accreditation Certificate (No. GR202144204080), which isvalid for 3 years. From 2021 to 2023, the Company will enjoy preferential policies forhigh-tech corporate income tax and its corporate income tax will be calculated and paid ata reduced rate of 15.00%.
(2) According to the document Guo Ke Huo Zi (2020) No.46, Shenzhen ShennandianTurbine Engineering Technology Co., Ltd. has obtained the National High-tech EnterpriseAccreditation Certificate (No. GR202044200352), which is valid for 3 years. From 2020to 2023, the Company will enjoy preferential policies for high-tech corporate income taxand its corporate income tax will be calculated and paid at a reduced rate of 15.00%.
2. Preferential policies for VAT:
| Type of tax | Company name | Relevant regulations and policy basis | Approving authority | Approval number | Exemption range | Term of validity |
| VAT | Environmental Protection Company | Notice on the Catalogue of VAT Preferential Policies for Products and Labor Services for Comprehensive Utilization of Resources (CS No. [2015] 78) | Qianhai Office of Shenzhen Tax Service, State Taxiation Administration | SQSST No. [2018] 18302 | Refund upon collection of VAT for comprehensive utilization of resources | From August 01, 2020 to July 31, 2023 |
| VAT | Engineering Company | Administrative Measures for VAT Exemption for Cross-boarder Taxable Activities of VAT in Lieu of Business Tax | Qianhai Office of Shenzhen Tax Service, State Taxiation Administration | Announcement of the State Taxation Administration [2016] No.29 | VAT exemption for cross-border taxable activities |
V. Notes to items of the consolidated financial statements
1. Cash and cash equivalents
| Item | Ending balance | Ending balance last year |
| Cash on hand | 30,624.14 | 37,698.63 |
| Item | Ending balance | Ending balance last year |
| Bank deposit | 260,369,004.01 | 647,983,965.23 |
| Other cash and cash equivalents | 32,915,036.77 | 27,474,602.54 |
| Total | 293,314,664.92 | 675,496,266.40 |
| Including: total amount of deposit abroad | 6,222,045.22 | 6,016,949.57 |
Details of the cash and cash equivalents which are restricted for use due to mortgage,pledge or freezing, and which are placed overseas with restrictions on fund repatriationare as follows:
| Item | Ending balance | Ending balance last year |
| Bank acceptance bill margin | 27,474,594.34 | 27,474,594.34 |
| Performance bond | 5,440,434.23 | |
| Total | 32,915,028.57 | 27,474,594.34 |
2. Trading financial assets
| Item | Ending balance | Ending balance last year |
| Financial assets measured at fair value and the changes of which are included in the current profit or loss | 145,000,000.00 | 440,013,571.10 |
| Including: investment in debt instruments | ||
| Investments in equity instruments | ||
| Derivative financial assets | ||
| Others | 145,000,000.00 | 440,013,571.10 |
| Financial assets designated to be measured at fair value through current profit or loss | ||
| Including: investment in debt instruments | ||
| Investments in equity instruments | ||
| Total | 145,000,000.00 | 440,013,571.10 |
3. Accounts receivable
a) Accounts receivable disclosed by aging
| Aging | Ending balance | Ending balance last year |
| Within 1 year (including 1 year) | 88,354,422.85 | 103,306,168.76 |
| 1-2 years (including 2 years) | 58,189,402.12 | 34,239,288.30 |
| 2-3 years (including 3 years) | - | |
| More than 3 years | 5,558,673.67 | 5,558,673.67 |
| Aging | Ending balance | Ending balance last year |
| Sub-total | 152,102,498.64 | 143,104,130.73 |
| Less: provision for bad debts | 7,270,638.09 | 7,270,638.09 |
| Total | 144,831,860.55 | 135,833,492.64 |
b) Disclosure of accounts receivable by category based on provision method for
bad debts
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Ratio of provision (%) | ||
| Accounts receivable with provision for bad debts made on an individual basis | 5,558,673.67 | 3.65 | 5,558,673.67 | 100.00 | - |
| Provision for bad debts by portfolio of risk characteristics | 146,543,824.97 | 96.35 | 1,711,964.42 | 1.17 | 144,831,860.55 |
| Including: low-risk portfolio | 146,543,824.97 | 96.35 | 1,711,964.42 | 1.17 | 144,831,860.55 |
| Total | 152,102,498.64 | 100.00 | 7,270,638.09 | 4.78 | 144,831,860.55 |
| Category | Ending balance last year | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Ratio of provision (%) | ||
| Accounts receivable with provision for bad debts made on an individual basis | 5,558,673.67 | 3.88 | 5,558,673.67 | 100.00 | - |
| Provision for bad debts by portfolio of risk characteristics | 137,545,457.06 | 96.12 | 1,711,964.42 | 1.24 | 135,833,492.64 |
| Including: low-risk portfolio | 137,545,457.06 | 96.12 | 1,711,964.42 | 1.24 | 135,833,492.64 |
| Total | 143,104,130.73 | 100.00 | 7,270,638.09 | 5.08 | 135,833,492.64 |
Provision for bad debts accrued on an individual basis
| Name | Ending balance |
| Book balance | Provision for bad debts | Ratio of provision (%) | Reason for provision | |
| Shenzhen Petrochemical Products Bonded Trading Co., Ltd. | 3,474,613.06 | 3,474,613.06 | 100.00 | Estimated to be irrecoverable |
| China Soilbase Engineering Co., Ltd. | 1,137,145.51 | 1,137,145.51 | 100.00 | Estimated to be irrecoverable |
| Shenzhen Fuhuade Electricity Co., Ltd. | 800,000.00 | 800,000.00 | 100.00 | Estimated to be irrecoverable |
| Others | 146,915.10 | 146,915.10 | 100.00 | Estimated to be irrecoverable |
| Total | 5,558,673.67 | 5,558,673.67 | 100.00 |
c) Provision, reversal or recovery of provision for bad debts in the current
period
| Category | Ending balance last year | Changes in current period | Ending balance | ||
| Provision | Recovery or reversal | Others | |||
| Accounts receivable with provision for bad debts made on an individual basis | 5,558,673.67 | 5,558,673.67 | |||
| Provision for bad debts by portfolio of risk characteristics | 1,711,964.42 | 1,711,964.42 | |||
| Total | 7,270,638.09 | 7,270,638.09 | |||
d) Top 5 accounts receivable in terms of ending balances due from debtors
| Company name | Book balance | Ratio in the balance of accounts receivable (%) | Ending balance of the provision for bad debts |
| No.1 | 79,629,858.86 | 52.35 | 1,711,964.42 |
| No.2 | 54,764,958.01 | 36.01 | |
| No.3 | 7,264,100.00 | 4.78 | |
| No.4 | 4,957,000.00 | 3.26 | |
| No.5 | 3,474,613.06 | 2.28 | 3,474,613.06 |
| Total | 150,090,529.93 | 98.68 | 5,186,577.48 |
4. Advances to suppliers
a) Presentation of advances to suppliers by aging
| Aging | Ending balance | Ending balance last year | ||
| Book balance | Ratio (%) | Book balance | Ratio (%) | |
| Within 1 year (including 1 year) | 52,803,240.38 | 97.91 | 44,506,222.90 | 97.93 |
| 1-2 years (including 2 years) | 622,841.10 | 1.15 | 514,851.14 | 1.13 |
| 2-3 years (including 3 years) | 465,000.00 | 0.86 | 389,626.88 | 0.86 |
| More than 3 years | 40,525.23 | 0.08 | 37,586.94 | 0.08 |
| Total | 53,931,606.71 | 100.00 | 45,448,287.86 | 100.00 |
b) Top 5 prepayments in terms of ending balance due to payee
| Company name | Book balance | Ratio in the balance of prepayments (%) |
| No.1 | 21,657,139.77 | 40.16 |
| No.2 | 18,038,674.04 | 33.45 |
| No.3 | 11,955,099.62 | 22.17 |
| No.4 | 458,593.30 | 0.85 |
| No.5 | 436,337.40 | 0.81 |
| Total | 52,545,844.13 | 97.43 |
5. Other receivables
| Item | Ending balance | Ending balance last year |
| Interest receivable | ||
| Dividends receivable | ||
| Other accounts receivable | 18,852,212.98 | 18,314,003.84 |
| Total | 18,852,212.98 | 18,314,003.84 |
a) Other accounts receivable
(1) Disclosure by aging
| Aging | Ending balance | Ending balance last year |
| Within 1 year | 5,052,627.80 | 1,058,183.07 |
| Aging | Ending balance | Ending balance last year |
| 1-2 years | 842,636.66 | 36,436.71 |
| 2-3 years | 172,169.92 | 243,391.13 |
| More than 3 years | 44,825,166.21 | 49,016,380.54 |
| Sub-total | 50,892,600.59 | 50,354,391.45 |
| Less: provision for bad debts | 32,040,387.61 | 32,040,387.61 |
| Total | 18,852,212.98 | 18,314,003.84 |
(2) Disclosure by category
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Ratio of provision (%) | ||
| Accounts receivable with provision for bad debts made on an individual basis | 32,328,502.39 | 63.52 | 32,040,387.61 | 99.11 | 288,114.78 |
| Provision for bad debts based on portfolio of credit risk characteristics | 18,564,098.20 | 36.48 | 18,564,098.20 | ||
| Including: low-risk portfolio | 18,564,098.20 | 36.48 | 18,564,098.20 | ||
| Total | 50,892,600.59 | 100.00 | 32,040,387.61 | 62.96 | 18,852,212.98 |
| Category | Ending balance last year | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Ratio of provision (%) | ||
| Accounts receivable with provision for bad debts made on an individual basis | 32,328,502.39 | 64.20 | 32,040,387.61 | 99.11 | 288,114.78 |
| Provision for bad debts based on portfolio of credit risk characteristics | 18,025,889.06 | 35.80 | 18,025,889.06 | ||
| Including: low-risk portfolio | 18,025,889.06 | 35.80 | 18,025,889.06 | ||
| Total | 50,354,391.45 | 100.00 | 32,040,387.61 | 63.63 | 18,314,003.84 |
Provision for bad debts accrued on an individual basis
| Name | Ending balance | |||
| Book balance | Provision for bad debts | Ratio of provision (%) | Reason for provision | |
| Huiyang County Kangtai Industrial Company | 14,311,626.70 | 14,311,626.70 | 100.00 | Estimated to be irrecoverable |
| Individual income tax | 2,470,039.76 | 2,470,039.76 | 100.00 | Estimated to be irrecoverable |
| Dormitory amounts receivable | 1,736,004.16 | 1,736,004.16 | 100.00 | Estimated to be irrecoverable |
| Accounts receivable from individuals | 7,498,997.87 | 7,498,997.87 | 100.00 | Estimated to be irrecoverable |
| Jinan Power Equipment Co., Ltd. | 3,560,000.00 | 3,560,000.00 | 100.00 | Estimated to be irrecoverable |
| Zuo Hao Garment (Shenzhen) Co., Ltd. | 43,068.31 | 43,068.31 | 100.00 | Estimated to be irrecoverable |
| Shenzhen Guanhua Printing and Dyeing Co., Ltd. | 53,591.75 | 53,591.75 | 100.00 | Estimated to be irrecoverable |
| Shenzhen Nanhua Printing and Dyeing Co., Ltd. | 41,407.01 | 41,407.01 | 100.00 | Estimated to be irrecoverable |
| Huizhou Bangdenong Ecological Organic Fertilizer Co., Ltd. | 25,788.00 | 25,788.00 | 100.00 | Estimated to be irrecoverable |
| Huizhou Lvhuan Fertilizer Co., Ltd. | 44,112.10 | 44,112.10 | 100.00 | Estimated to be irrecoverable |
| Others | 2,543,866.73 | 2,255,751.95 | 88.67 | Estimated to be irrecoverable |
| Total | 32,328,502.39 | 32,040,387.61 | 99.11 | |
(3) Provision for bad debts
| Provision for bad debts | First stage | Second stage | Third stage | Total |
| Expected credit loss for the next 12 months | Expected credit loss over the whole life (without credit impairment) | Expected credit loss over the whole life (with credit impairment) | ||
| Beginning balance | 32,040,387.61 | 32,040,387.61 | ||
| Beginning balance in the current period | ||||
| - Carried forward to the second stage | ||||
| - Carried forward to the third stage | ||||
| - Reversal to the second stage | ||||
| - Reversal to the first stage | ||||
| Provision in the current period | ||||
| Reversal in the current period | ||||
| Charge-off in the current period | ||||
| Write-off in current period |
| Provision for bad debts | First stage | Second stage | Third stage | Total |
| Expected credit loss for the next 12 months | Expected credit loss over the whole life (without credit impairment) | Expected credit loss over the whole life (with credit impairment) | ||
| Other changes | ||||
| Ending balance | 32,040,387.61 | 32,040,387.61 |
(4) Classification by the nature of payment
| Nature of payment | Book balance at the end of period | Book balance at the end of the previous year |
| Deposit and security deposit | 1,654,712.69 | 2,784,868.96 |
| Withholding payments | 9,393,549.05 | 8,077,850.31 |
| Accounts receivable from Huidong Server | 15,817,190.04 | 14,740,501.44 |
| Current accounts and others | 24,027,148.81 | 24,751,170.74 |
| Sub-total | 50,892,600.59 | 50,354,391.45 |
| Less: provision for bad debts | 32,040,387.61 | 32,040,387.61 |
| Total | 18,852,212.98 | 18,314,003.84 |
(5) Top 5 of other accounts receivable in terms of ending balances due fromdebtors
| Company name | Nature of payment | Book balance | Aging | Ratio in the total ending balance of accounts receivable (%) | Ending balance of the provision for bad debts |
| No.1 | Current accounts | 14,911,484.45 | 1-3 years | 29.30 | |
| No.2 | Current accounts | 14,311,626.70 | More than 3 years | 28.12 | 14,311,626.70 |
| No.3 | Security deposit | 3,560,000.00 | More than 3 years | 7.00 | 3,560,000.00 |
| No.4 | Deposit | 1,460,919.00 | More than 3 years | 2.87 | |
| No.5 | Current accounts | 1,408,866.89 | More than 3 years | 2.77 | 1,408,866.89 |
| Total | 35,652,897.04 | 70.06 | 19,280,493.59 |
6. Inventories
a) Classification of inventories
| Item | Ending balance | Ending balance last year | ||||
| Book balance | Inventory falling price reserves | Book value | Book balance | Inventory falling price reserves | Book value | |
| Raw materials | 144,075,420.62 | 59,079,222.05 | 84,996,198.57 | 144,000,440.38 | 59,079,222.05 | 84,921,218.33 |
| Sporadic spare parts | 358,080.02 | 358,080.02 | ||||
| Total | 144,075,420.62 | 59,079,222.05 | 84,996,198.57 | 144,358,520.40 | 59,079,222.05 | 85,279,298.35 |
b) Inventory falling price reserves
| Item | Ending balance last year | Increase in the current period | Decrease in the current period | Ending balance | ||
| Provision | Others | Reversal or charge-off | Others | |||
| Raw materials | 59,079,222.05 | 59,079,222.05 | ||||
| Total | 59,079,222.05 | 59,079,222.05 | ||||
7. Contract assets
| Item | Ending balance | Ending balance last year |
| Operation and maintenance project settlement receivable | ||
| Quality guarantee deposit receivable | 89,848.39 | 217,009.58 |
| Sub-total | 89,848.39 | 217,009.58 |
| Provision for contract assets impairment | ||
| Total | 89,848.39 | 217,009.58 |
8. Other current assets
| Item | Ending balance | Ending balance last year |
| Negotiable certificate of deposit | 230,000,000.00 | 180,000,000.00 |
| Input tax of VAT to be deducted | 1,423,597.61 | 1,103,481.37 |
| Prepaid income tax | 6,583,089.98 | 6,583,089.98 |
| Interest receivable on time deposits | 237,900.37 | 496,849.31 |
| Others | 11,820.78 | 65,419.78 |
| Total | 238,256,408.74 | 188,248,840.44 |
9. Long-term equity investments
| Investees | Ending balance last year | Increase/decrease in the current period | Ending balance | Ending balance of the provision for impairment | |||||||
| Additional investment | Decrease in investment | Profit or loss of investment recognized under the equity method | Adjustment of other comprehensive income | Changes in other equity | Cash dividends or profits declared and distributed | Provision for impairment | Others | ||||
| 1. Associates | |||||||||||
| Huidong Server Harbor Comprehensive Development Company (hereinafter referred to as the "Huidong Server") | 4,414,021.80 | 334,799.49 | 4,748,821.29 | ||||||||
| Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. (hereinafter referred to as "Liaoyuan Environmental Protection") | 79,082,076.44 | 1,308,357.00 | 1,214,550.00 | 79,175,883.44 | |||||||
| Total | 83,496,098.24 | - | - | 1,643,156.49 | - | - | 1,214,550.00 | - | - | 83,924,704.73 | |
10. Other investments in equity instruments
a) Details of other investments in equity instruments
| Item | Ending balance of this year | Ending balance last year | ||||
| Original book value | Changes in fair value | Ending balance | Original book value | Changes in fair value | Ending balance | |
| Jiangxi Nuclear Power Co., Ltd. | 60,615,000.00 | 60,615,000.00 | 60,615,000.00 | 60,615,000.00 | ||
| Sunpower Tech (Jiangsu) Co., Ltd. | 140,000,000.00 | 140,000,000.00 | 140,000,000.00 | 140,000,000.00 | ||
| Shenzhen Petrochemical Products Bonded Trading Co., Ltd. | 2,500,000.00 | -2,500,000.00 | 2,500,000.00 | -2,500,000.00 | ||
| Shenzhen Yuanzhi Ruixin New Generation Information Technology Private Equity Investments Fund Partnership (Limited Partnership) | 100,000,000.00 | 100,000,000.00 | 100,000,000.00 | 100,000,000.00 | ||
| Total | 303,115,000.00 | -2,500,000.00 | 300,615,000.00 | 303,115,000.00 | -2,500,000.00 | 300,615,000.00 |
b) Investment in non-trading equity instruments
| Item | Dividend income recognized in the current period | Cumulative gains | Cumulative loss | Amount transferred from the other comprehensive income to retained earnings | Reasons for being designated to be measured at fair value through other comprehensive income | Reasons for the transfer of other comprehensive income into retained earnings |
| Jiangxi Nuclear Power Co., Ltd. | Planned to hold for a long term | |||||
| Shenzhen Petrochemical Products Bonded Trading Co., Ltd. | -2,500,000.00 | Planned to hold for a long term | ||||
| Sunpower Tech (Jiangsu) Co., Ltd. | 8,400,000.00 | Planned to hold for a long term | ||||
| Shenzhen Yuanzhi Ruixin New Generation Information Technology Private Equity Investments Fund Partnership (Limited Partnership) | 340,206.13 | Planned to hold for a long term | ||||
| Total | 8,740,206.13 | -2,500,000.00 |
11. Investment properties
a) Investment properties measured at the cost mode
| Item | Houses and buildings | Total |
| 1. Original book value | ||
| (1) Balance at the end of last year | 9,708,014.96 | 9,708,014.96 |
| (2) Increase during the current period | ||
| (3) Decrease during the current period | ||
| (4) Ending balance | 9,708,014.96 | 9,708,014.96 |
| 2. Accumulated depreciation and amortization | ||
| (1) Balance at the end of last year | 7,874,670.76 | 7,874,670.76 |
| (2) Increase during the current period | 84,388.80 | 84,388.80 |
| (3) Decrease during the current period | - | |
| (4) Ending balance | 7,959,059.56 | 7,959,059.56 |
| 3. Provision for impairment | ||
| (1) Balance at the end of last year | ||
| (2) Increase during the current period | ||
| (3) Decrease during the current period | ||
| (4) Ending balance | ||
| 4. Book value | ||
| (1) Book value at the end of the period | 1,748,955.40 | 1,748,955.40 |
| (2) Book value at the end of the previous year | 1,833,344.20 | 1,833,344.20 |
12. Fixed assets
a) Fixed assets and disposal of fixed assets
| Item | Ending balance | Ending balance last year |
| Fixed assets | 577,934,944.24 | 591,290,204.31 |
| Disposal of fixed assets | 491,295.99 | |
| Total | 578,426,240.23 | 591,290,204.31 |
b) Details of fixed assets
| Item | Houses and buildings | Machinery equipment | Means of transport | Others | Total |
| 1. Original book value | |||||
| (1) Balance at the end of last year | 424,154,183.71 | 2,725,092,344.93 | 8,138,535.02 | 44,622,476.80 | 3,202,007,540.46 |
| (2) Increase during the current period | 1,209,282.24 | 177,917.45 | 1,387,199.69 | ||
| - Purchase | 177,917.45 | 177,917.45 | |||
| - Transfer-in from projects under construction | 1,209,282.24 | 1,209,282.24 | |||
| -Others | - | ||||
| (3) Decrease during the current period | 1,537,429.89 | 39,051.73 | 1,576,481.62 | ||
| - Disposal or scrapping | 1,537,429.89 | 39,051.73 | 1,576,481.62 | ||
| - Others | - | ||||
| (4) Ending balance | 424,154,183.71 | 2,726,301,627.17 | 6,601,105.13 | 44,761,342.52 | 3,201,818,258.53 |
| 2. Accumulated depreciation | |||||
| (1) Balance at the end of last year | 294,778,055.90 | 1,912,442,654.22 | 5,011,870.15 | 33,757,207.10 | 2,245,989,787.37 |
| (2) Increase during the current period | 4,846,599.33 | 7,215,954.91 | 595,886.75 | 1,215,680.50 | 13,874,121.49 |
| —Provision | 4,846,599.33 | 7,215,954.91 | 595,886.75 | 1,215,680.50 | 13,874,121.49 |
| -Others | |||||
| (3) Decrease during the current period | 1,160,387.61 | 39,051.73 | 1,199,439.34 | ||
| - Disposal or scrapping | 1,160,387.61 | 39,051.73 | 1,199,439.34 |
| Item | Houses and buildings | Machinery equipment | Means of transport | Others | Total |
| -Others | |||||
| (4) Ending balance | 299,624,655.23 | 1,919,658,609.13 | 4,447,369.29 | 34,933,835.87 | 2,258,664,469.52 |
| 3. Provision for impairment | |||||
| (1) Balance at the end of last year | 22,573,968.96 | 341,888,879.56 | 53,176.48 | 211,523.78 | 364,727,548.78 |
| (2) Increase during the current period | |||||
| —Provision | |||||
| (3) Decrease during the current period | |||||
| - Disposal or scrapping | |||||
| (4) Ending balance | 22,573,968.96 | 341,888,879.56 | 53,176.48 | 211,523.78 | 364,727,548.78 |
| 4. Book value | |||||
| (1) Book value at the end of the period | 101,955,559.52 | 464,754,138.48 | 2,100,559.36 | 9,615,982.87 | 578,426,240.23 |
| (2) Book value at the end of the previous year | 106,802,158.85 | 470,760,811.15 | 3,073,488.39 | 10,653,745.92 | 591,290,204.31 |
c) Details of the fixed assets without certificate of title
| Item | Book value | Reasons for failure to obtain the certificate of title |
| Circulating water pump house | 804,495.56 | Procedures uncompleted |
| Cooling tower | 673,259.25 | Procedures uncompleted |
| Complex building | 443,246.19 | Procedures uncompleted |
| Canteen of the complex building | 227,979.99 | Procedures uncompleted |
| Chemical water treatment workshop | 232,960.00 | Procedures uncompleted |
| Main entrance mail room | 57,339.98 | Procedures uncompleted |
| Total | 2,439,280.97 |
13. Projects under construction
a) Projects under construction
| Item | Ending balance | Ending balance last year |
| Projects under construction | 6,222,095.21 | 4,861,062.16 |
| Total | 6,222,095.21 | 4,861,062.16 |
b) Details of projects under construction
| Item | Ending balance | Ending balance last year | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Cogeneration project | 60,307,712.44 | 59,515,356.69 | 792,355.75 | 60,307,712.44 | 59,515,356.69 | 792,355.75 |
| Oil-to-gas project | 9,441,286.39 | 9,441,286.39 | 9,441,286.39 | 9,441,286.39 | ||
| Technical renovation project | 7,034,739.46 | 1,605,000.00 | 5,429,739.46 | 5,673,706.41 | 1,605,000.00 | 4,068,706.41 |
| Total | 76,783,738.29 | 70,561,643.08 | 6,222,095.21 | 75,422,705.24 | 70,561,643.08 | 4,861,062.16 |
c) Changes in significant projects under construction in the current period
| Project name | Budgeted amount | Ending balance last year | Increase in the current period | Amount transferred into fixed assets in the current period | Other decreases in the current period (note) | Ending balance | Ratio of accumulated project investment in the budget (%) | Rate of progress (%) | Accumulated capitalization amount of interest | Including: amount of capitalized interest in the current period | Capitalization rate of interest in the current period (%) | Source of funds |
| Cogeneration project | 60,000,000.00 | 60,307,712.44 | 60,307,712.44 | 100.51 | 100.00 | 6,476,185.46 | Self-raised and borrowing | |||||
| Oil-to-gas project | 9,441,286.39 | 9,441,286.39 | Self-raised funds | |||||||||
| Technical renovation project | 5,673,706.41 | 1,361,033.05 | 7,034,739.46 | Self-raised funds | ||||||||
| Total | 60,000,000.00 | 75,422,705.24 | 1,361,033.05 | - | - | 76,783,738.29 | 6,476,185.46 | - |
14. Right-of-use assets
| Item | Buildings | Total |
| I. Original book value | ||
| 1. Beginning balance | 16,322,014.37 | 16,322,014.37 |
| 2. Increase in the current period | - | |
| 3. Decrease in the current period | - | |
| 4. Ending balance | 16,322,014.37 | 16,322,014.37 |
| II. Accumulated depreciation | ||
| 1. Beginning balance | 8,614,396.47 | 8,614,396.47 |
| 2. Increase in the current period | 2,720,335.74 | 2,720,335.74 |
| (1) Provision | 2,720,335.74 | 2,720,335.74 |
| 3. Decrease in the current period | ||
| (1) Disposal | ||
| 4. Ending balance | 11,334,732.21 | 11,334,732.21 |
| III. Provision for impairment | ||
| IV. Book value | ||
| 1. Book value at the end of period | 4,987,282.16 | 4,987,282.16 |
| 2. Book value at the beginning of the year | 7,707,617.90 | 7,707,617.90 |
Note: the right-of-use assets in the current period refer to the Company's operating leaseof the 16-17th floors of Hantang Building Property for office use.
15. Intangible assets
a) Details of intangible assets
| Item | Land use right | Patent right | Software | Total |
| 1. Original book value | ||||
| (1) Balance at the end of last year | 60,813,994.76 | 138,625.07 | 3,782,983.49 | 64,735,603.32 |
| (2) Increase during the current period | ||||
| - Purchase | ||||
| (3) Decrease during the current period | ||||
| -Others | ||||
| (4) Ending balance | 60,813,994.76 | 138,625.07 | 3,782,983.49 | 64,735,603.32 |
| 2. Accumulated amortization | ||||
| (1) Balance at the end of last year | 41,265,885.15 | 31,817.30 | 3,638,545.75 | 44,936,248.20 |
| (2) Increase during the current period | 311,314.80 | 10,133.06 | 23,478.16 | 344,926.02 |
| —Provision | 311,314.80 | 10,133.06 | 23,478.16 | 344,926.02 |
| Item | Land use right | Patent right | Software | Total |
| (3) Decrease during the current period | ||||
| - Disposal | ||||
| (4) Ending balance | 41,577,199.95 | 41,950.36 | 3,662,023.91 | 45,281,174.22 |
| 3. Provision for impairment | ||||
| (1) Balance at the end of last year | ||||
| (2) Increase during the current period | ||||
| —Provision | ||||
| (3) Decrease during the current period | ||||
| - Disposal | ||||
| (4) Ending balance | ||||
| 4. Book value | ||||
| (1) Book value at the end of the period | 19,236,794.81 | 96,674.71 | 120,959.58 | 19,454,429.10 |
| (2) Book value at the end of the previous year | 19,548,109.61 | 106,807.77 | 144,437.74 | 19,799,355.12 |
b) Details of land use right without certificate of title
| Item | Book value | Reasons for failure to obtain the certificate of title |
| Land use right of the wharf and pipe gallery | 482,221.57 | Procedures uncompleted |
| Total | 482,221.57 |
16. Long-term deferred expenses
| Item | Ending balance last year | Increase in the current period | Amortization amount for the current period | Other decreases | Ending balance |
| Decoration fees | 1,219,129.18 | 248,665.56 | 970,463.62 | ||
| Total | 1,219,129.18 | 248,665.56 | 970,463.62 |
17. Deferred tax assets and deferred tax liabilities
Non-offset deferred tax assets
| Item | Ending balance | Ending balance last year |
| Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | |
| Provision for bad debts | 3,649,109.93 | 547,366.49 | 3,649,109.93 | 547,366.49 |
| Changes in fair value of investments in other equity instruments | 2,500,000.00 | 625,000.00 | 2,500,000.00 | 625,000.00 |
| Total | 6,149,109.93 | 1,172,366.49 | 6,149,109.93 | 1,172,366.49 |
18. Other non-current assets
| Item | Ending balance | Ending balance last year |
| Quality guarantee deposit for projects | 5,724,444.82 | 5,371,398.18 |
| Total | 5,724,444.82 | 5,371,398.18 |
19. Short-term borrowings
a) Classification of short-term borrowings
| Item | Ending balance | Ending balance last year |
| Credit borrowings | 226,482,574.59 | 885,229,358.05 |
| Accrued interest | 130,080.79 | 1,806,895.30 |
| Interest on bill discounting | -7,078,395.91 | |
| Total | 226,612,655.38 | 879,957,857.44 |
20. Notes payable
| Category | Ending balance | Ending balance last year |
| Bank acceptance bills | 137,298,902.17 | 137,298,902.17 |
| Total | 137,298,902.17 | 137,298,902.17 |
21. Accounts payable
a) List of accounts payable
| Item | Ending balance | Ending balance last year |
| Payment for materials | 393,610.51 | 292,422.50 |
| Item | Ending balance | Ending balance last year |
| Electricity charge | 1,359,094.94 | 937,613.72 |
| Service charge | 2,369,057.52 | 3,997,800.00 |
| Total | 4,121,762.97 | 5,227,836.22 |
As at the end of the reporting period, the Company had no significant accounts payablewith aging of over one year.
22. Employee compensation payable
a) Presentation of employee compensation payable
| Item | Ending balance last year | Increase in the current period | Decrease in the current period | Ending balance |
| Short-term compensation | 29,296,815.07 | 49,737,665.86 | 51,861,501.45 | 27,172,979.48 |
| Post-employment benefits - defined contribution plans | 7,632,523.28 | 5,517,561.28 | 2,114,962.00 | |
| Dismissal welfare | ||||
| Other benefits maturing within one year | ||||
| Total | 29,296,815.07 | 57,370,189.14 | 57,379,062.73 | 29,287,941.48 |
b) List of short-term compensation
| Item | Ending balance last year | Increase in the current period | Decrease in the current period | Ending balance |
| (1) Salaries, bonuses, allowances and subsidies | 28,806,319.36 | 38,074,252.95 | 40,085,028.49 | 26,795,543.82 |
| (2) Employee welfare expenses | 107,277.20 | 3,032,981.38 | 3,140,258.58 | |
| (3) Social insurance premiums | 2,857,262.39 | 2,857,262.39 | ||
| Including: medical insurance premiums | 2,570,908.59 | 2,570,908.59 | ||
| Work-related injury insurance premiums | 118,648.42 | 118,648.42 | ||
| Maternity insurance premiums | 167,705.38 | 167,705.38 | ||
| (4) Housing provident fund | 4,960,520.44 | 4,960,520.44 | ||
| (5) Union funds and employee education funds | 383,218.51 | 812,648.70 | 818,431.55 | 377,435.66 |
| (6) Short-term compensated absences | ||||
| (7) Short-term profit sharing plans | ||||
| (8) Others |
| Item | Ending balance last year | Increase in the current period | Decrease in the current period | Ending balance |
| Total | 29,296,815.07 | 49,737,665.86 | 51,861,501.45 | 27,172,979.48 |
c) Presentation of defined contribution plans
| Item | Ending balance last year | Increase in the current period | Decrease in the current period | Ending balance |
| Basic endowment insurance | 5,446,193.55 | 5,446,193.55 | ||
| Unemployment insurance premium | 71,367.73 | 71,367.73 | ||
| Enterprise annuity payment | 2,114,962.00 | 2,114,962.00 | ||
| Total | 7,632,523.28 | 5,517,561.28 | 2,114,962.00 |
23. Taxes payable
| Taxes and duties | Ending balance | Ending balance last year |
| VAT | 3,938,360.24 | 2,068,236.33 |
| Individual income tax | 925,601.29 | 1,825,992.00 |
| Urban maintenance and construction tax | 17,117.99 | 2,464.98 |
| Education surcharges | 6,760.78 | 630.08 |
| Local education surcharges | 4,507.19 | 420.06 |
| House tax | 1,957,288.05 | 996,166.86 |
| Stamp duty | 170,883.69 | |
| Environmental protection duty | ||
| Others | 419,842.26 | 42,872.73 |
| Total | 7,269,477.80 | 5,107,666.73 |
24. Other payables
| Item | Ending balance | Ending balance last year |
| Interest payable | ||
| Other payables | 22,785,089.94 | 22,997,466.80 |
| Total | 22,785,089.94 | 22,997,466.80 |
a) Other payables
(1) Presented by the nature of payment
| Item | Ending balance | Ending balance last year |
| Project funds | 8,463,575.53 | 7,525,391.28 |
| Quality guarantee deposit | 4,952,004.54 | 6,973,652.54 |
| Accrued expenses | 4,548,310.37 | 7,429,154.13 |
| Payment for materials | 52,087.65 | 52,087.65 |
| Others | 4,769,111.85 | 1,017,181.20 |
| Total | 22,785,089.94 | 22,997,466.80 |
(2) Top 5 of other payables
| Company name | Book balance | Ratio in the balance of other payables (%) |
| No.1 | 3,108,638.60 | 13.64 |
| No.2 | 2,172,495.58 | 9.53 |
| No.3 | 1,280,336.71 | 5.62 |
| No.4 | 860,190.12 | 3.78 |
| No.5 | 387,621.83 | 1.70 |
| Total | 7,809,282.84 | 34.27 |
25. Non-current liabilities maturing within one year
| Item | Ending balance | Ending balance last year |
| Lease liabilities maturing within one year | 5,624,540.90 | 6,279,115.44 |
| Less: unrecognized financing expenses | 128,604.20 | 264,995.49 |
| Total | 5,495,936.70 | 6,014,119.95 |
26. Other current liabilities
| Item | Ending balance | Ending balance last year |
| Output tax to be carried forward in the VAT | 12,787.72 | 21,600.00 |
| Total | 12,787.72 | 21,600.00 |
27. Long-term borrowings
| Item | Ending balance | Ending balance last year |
| Credit borrowings | 105,274,084.45 | 28,019,758.68 |
| Total | 105,274,084.45 | 28,019,758.68 |
28. Lease liabilities
a) Details of lease liabilities
| Item | Ending balance | Ending balance last year |
| Lease liabilities | 2,291,614.01 | |
| Less: unrecognized financing expenses | 29,453.98 | |
| Total | - | 2,262,160.03 |
b) Maturity analysis of lease liabilities
| Item | Ending balance | Ending balance last year |
| 1-2 years | 2,262,160.03 | |
| Total | - | 2,262,160.03 |
29. Estimated liabilities
| Item | Ending balance last year | Increase in the current period | Decrease in the current period | Ending balance | Reasons for formation |
| Pending litigation | 15,000,000.00 | 15,000,000.00 | |||
| Total | 15,000,000.00 | 15,000,000.00 |
Note: On November 29, 2013, Shenzhen Server and Jiahua Building Products (Shenzhen) Co., Ltd.("Jiahua Building") signed a supplementary agreement to the equity transfer agreement with respect tothe historical issues regarding the ownership and division of the equity of Yapojiao Wharf amongShenzhen Server, Huidong Server, Huidong Renshan Town Government and its subordinate RenshanGroup. In order to solve the historical issues, Shenzhen Server deposited RMB 12,500,000.00 into theco-managed account for guarantee, and pledged 20% equity of Huidong Server held by it to JiahuaBuilding for two years, with the amount of claims guaranteed by pledge not exceeding RMB15,000,000.00. The Company predicted a loss related to this matter of RMB 27, 500,000.00, and thebalance at the end of 2019 was RMB 26,646,056.28.
On November 12, 2020, Huidong Server reached a preliminary settlement agreement with otherrelevant parties on the land disputes in the estimated liabilities, and Shenzhen Server reversed theestimated liabilities of RMB 6,584,816.78 accordingly. In 2020, Shenzhen Server bore the lawyer andother expenses of RMB 137,731.22 in accordance with the agreed ratio, and the total decrease inestimated liabilities in 2020 was RMB 6,722,548.00. The balance of RMB 19,923,508.28 is therepayment obligation that is likely to occur before the completion of the above matters.On November 12, 2020, Huizhou Commercial Construction and Development Company andHuidong Server Harbor Comprehensive Development Company signed the Agreement on Transfer ofClaims and the record of enforcement and compromise of the People's Court of Huidong County,partially resolving the historical issues concerning the ownership and division of the equity of YapojiaoWharf. On January 20, 2021, Shenzhen Server received the refund of RMB 5,000,000.00 from the co-managed account, and it reversed the estimated liabilities RMB 4,573,508.28 accordingly. In 2021,Shenzhen Server bore the legal and other expenses of RMB 350,000 in accordance with the agreed ratio,with a total decrease of RMB 4,923,508.28 in estimated liabilities in 2021. The balance of RMB15,000,000.00 is a repayment obligation likely to occur before the completion of the above matters.
30. Deferred income
| Item | Ending balance last year | Increase in the current period | Decrease in the current period | Ending balance | Reasons for formation |
| Government subsidies | 82,145,596.60 | - | 3,178,964.54 | 78,966,632.06 | Government subsidies |
| Total | 82,145,596.60 | - | 3,178,964.54 | 78,966,632.06 |
Items involving government subsidies:
| Liabilities | Ending balance last year | New subsidies in the current period | Amount included in the current profit or loss at the current period | Other changes | Ending balance | Related to assets/revenue |
| Government subsidies for low nitrogen equipment modification | 23,615,664.69 | 252,422.00 | 23,363,242.69 | Related to assets | ||
| Subsidies for the motor energy efficiency improvement | 298,080.00 | 17,280.00 | 280,800.00 | Related to assets |
| funding scheme | ||||||
| Support fund for sludge drying project circular economy | 5,510,265.19 | 323,501.46 | 5,186,763.73 | Related to assets | ||
| Government bond subsidies for sludge drying project | 2,061,250.00 | 127,500.00 | 1,933,750.00 | Related to assets | ||
| Special funds for energy conservation and emission reduction | 342,111.34 | 57,018.66 | 285,092.68 | Related to assets | ||
| Subsidies for the improvement of atmospheric environment quality in Shenzhen | 49,330,169.80 | 2,365,909.09 | 46,964,260.71 | Related to assets | ||
| Funding for technological transformation investment project in 2021-2022 | 988,055.58 | 35,333.33 | 952,722.25 | Related to assets | ||
| Total | 82,145,596.60 | - | 3,178,964.54 | - | 78,966,632.06 |
31. Other non-current liabilities
| Item | Ending balance | Ending balance last year |
| Equity of the other partners in the partnership | 45,112.54 | 47,511.72 |
| Total | 45,112.54 | 47,511.72 |
32. Share capital
| Item | Ending balance last year | Increase (+) or decrease (-) in the current period | Ending balance | ||||
| New shares issued | Bonus issue | Conversion of provident fund into shares | Others | Sub-total | |||
| Total number of shares | 602,762,596.00 | 602,762,596.00 | |||||
33. Capital reserves
| Item | Ending balance last year | Increase in the current period | Decrease in the current period | Ending balance |
| Capital premiums (capital stock premium) | 233,035,439.62 | 233,035,439.62 | ||
| Other capital reserves | 129,735,482.48 | 129,735,482.48 | ||
| Total | 362,770,922.10 | 362,770,922.10 |
34. Other comprehensive income
| Item | Ending balance last year | Beginning balance | Current amount | Ending balance | |||||
| Amount before income tax in the current period | Less: included in other comprehensive income in prior periods and transferred to current profit or loss | Less: included in other comprehensive income in prior periods and transferred to current retained earnings | Less: income tax expenses | Amount attributable to the parent company after tax | Attributable to minority shareholders after tax | ||||
| 1. Other comprehensive income that cannot be reclassified into the profit or loss | |||||||||
| Including: changes in re-measurement of defined benefit plans | |||||||||
| Other comprehensive income that cannot be transferred to the profit or loss under the equity method | |||||||||
| Changes in fair value of investments in other equity instruments | -2,500,000.00 | -2,500,000.00 | |||||||
| Total of other comprehensive income | -2,500,000.00 | -2,500,000.00 | |||||||
35. Special reserves
| Item | Ending balance last year | Increase in the current period | Decrease in the current period | Ending balance |
| Work safety expenses | 3,810,328.32 | 3,590,892.38 | 219,435.94 | |
| Total | 3,810,328.32 | 3,590,892.38 | 219,435.94 |
36. Surplus reserves
| Item | Ending balance last year | Increase in the current period | Decrease in the current period | Ending balance |
| Statutory surplus reserves | 310,158,957.87 | 310,158,957.87 | ||
| Discretionary surplus reserves | 22,749,439.73 | 22,749,439.73 | ||
| Total | 332,908,397.60 | 332,908,397.60 |
37. Undistributed profit
| Item | Current amount | Amount for the previous period |
| Undistributed profit at the end of the previous year before adjustment | 159,187,979.14 | 319,351,219.81 |
| Total adjusted undistributed profit at the beginning of the year ("+" for increases and "-" for decreases) | ||
| Adjusted undistributed profit at the beginning of the year | 159,187,979.14 | 319,351,219.81 |
| Plus: net profit attributable to owners of the parent company in the current period | -37,240,739.56 | -94,098,149.09 |
| Less: withdrawal of statutory surplus reserves | ||
| Dividends payable for ordinary shares | ||
| Undistributed profit at the end of period | 121,947,239.58 | 225,253,070.72 |
38. Operating revenue and operating costs
| Item | Current amount | Amount for the previous period | ||
| Revenue | Costs | Revenue | Costs | |
| Main business | 270,628,454.23 | 285,268,563.82 | 228,639,162.83 | 282,392,283.22 |
| Other business | 639,730.82 | 99,366.08 | 604,379.24 | 94,148.99 |
| Total | 271,268,185.05 | 285,367,929.90 | 229,243,542.07 | 282,486,432.21 |
39. Taxes and surcharges
| Item | Current amount | Amount for the previous period |
| House tax | 961,121.19 | 1,521,117.59 |
| Vehicle and vessel tax | 1,080.00 | |
| Land use tax | 376,969.53 | 452,503.02 |
| Stamp duty | 150,371.40 | 335,629.10 |
| Urban maintenance and construction tax | 323,664.43 | 335,501.06 |
| Education surcharges | 136,671.47 | 142,789.14 |
| Local education surcharges | 91,114.32 | 96,152.80 |
| Environmental protection tax | 714.26 | 12,569.90 |
| Total | 2,041,706.60 | 2,896,262.61 |
40. Selling and distribution expenses
| Item | Current amount | Amount for the previous period |
| Employee compensation | 683,687.41 | |
| Business entertainment expenses | 60,438.80 | |
| Agency fee | 17,924.52 | |
| Property premium | 0.00 | |
| Others | 135,657.09 | |
| Total | 897,707.82 | - |
41. G&A expenses
| Item | Current amount | Amount for the previous period |
| Employee compensation | 16,678,744.54 | 20,629,642.95 |
| Lease fee | 149,208.80 | 3,046,301.79 |
| Depreciation cost | 5,836,834.84 | 3,949,187.75 |
| Business entertainment expenses | 709,926.13 | 913,815.31 |
| Agency fee | 1,040,133.44 | 697,476.86 |
| Repair cost | 359,247.29 | 218,372.10 |
| Environmental protection fee | 63,096.10 | 77,142.71 |
| Item | Current amount | Amount for the previous period |
| Vehicle expenses | 128,763.36 | 1,198,452.90 |
| Administrative expenses | 195,789.57 | 200,798.79 |
| Expenses of the Board of Directors | 227,754.47 | 313,528.29 |
| Communication expenses | 381,621.13 | 521,423.22 |
| Amortization of intangible assets | 31,717.80 | 36,421.38 |
| Property management fee | 491,101.02 | 493,842.17 |
| Travel expenses | 304,075.94 | 53,447.95 |
| Share certificate fee | 19,713.42 | 238,083.50 |
| Others | 7,895,474.87 | 11,189,707.01 |
| Total | 34,513,202.72 | 43,777,644.68 |
42. R&D expenses
| Item | Current amount | Amount for the previous period |
| Employee compensation | 11,392,275.80 | 15,356,997.69 |
| Depreciation cost | 969,806.88 | 1,306,880.89 |
| Others | 935,843.63 | 408,710.55 |
| Total | 13,297,926.31 | 17,072,589.13 |
43. Financial expenses
| Item | Current amount | Amount for the previous period |
| Interest expenses | 11,766,633.92 | 20,539,845.79 |
| Including: interest capitalized | ||
| Expensed interest expense | 11,766,633.92 | 20,539,845.79 |
| Less: interest income | 5,205,492.86 | 3,594,848.74 |
| Foreign exchange losses (gains are listed with "-") | -199,804.29 | -273,651.02 |
| Service fee | 203,183.08 | 58,370.08 |
| Amortization of financing charges unrecognized | 165,845.27 | |
| Total | 6,730,365.12 | 16,729,716.11 |
44. Other income
| Item | Current amount | Amount for the previous period |
| Government subsidies | 4,065,271.26 | 4,440,645.78 |
| Total | 4,065,271.26 | 4,440,645.78 |
Government subsidies included in other income
| Subsidy items | Current amount | Amount for the previous period | Related to assets/revenue |
| Subsidies for transformation of low nitrogen projects | 252,422.00 | 234,909.80 | Related to assets |
| Support fund for sludge drying project circular economy | 127,500.00 | 323,501.46 | Related to assets |
| Government bond subsidies for sludge drying project | 323,501.46 | 127,500.00 | Related to assets |
| Subsidies for the improvement of atmospheric environment quality in Shenzhen | 2,365,909.08 | 2,365,909.08 | Related to assets |
| Special funds for energy conservation and emission reduction | 57,018.66 | 57,018.66 | Related to assets |
| Funding scheme for the motor energy efficiency improvement | 17,280.00 | 17,280.00 | Related to assets |
| Funding for technological transformation investment project in 2021-2022 | 35,333.34 | 22,333.32 | Related to assets |
| National high-tech enterprises multiplication plan | 100,000.00 | 643,800.00 | Related to revenue |
| Refund of personal income tax | 74,806.72 | 243,753.86 | Related to revenue |
| Lump-sum subsidies for training of workers on post | - | 128,000.00 | Related to revenue |
| Subsidies for pilot demonstration of industrial "carbon peaking" | - | 200,000.00 | Related to revenue |
| Subsidies for stabilizing posts | 115,000.00 | 76,639.60 | Related to revenue |
| Sci-tech innovation voucher | 296,500.00 | Related to revenue | |
| Subsidies for supporting green and low-carbon development projects of enterprises | 300,000.00 | Related to revenue | |
| Total | 4,065,271.26 | 4,440,645.78 |
45. Investment income
| Item | Current amount | Amount for the previous period |
| Income from long-term equity investments accounted for by using the equity method | 1,643,156.49 | -1,471,602.77 |
| Investment income during the holding period of trading financial assets | 9,342,507.91 | 29,212,829.84 |
| Item | Current amount | Amount for the previous period |
| Dividend income earned during the holding period of investments in other equity instruments | 8,740,206.13 | |
| Total | 19,725,870.53 | 27,741,227.07 |
46. Income from asset disposal
| Item | Current amount | Amount for the previous period | Amount charged to the non-recurring profit or loss of the current period |
| Profit or loss from disposal of fixed assets | 111,895.22 | 111,895.22 | |
| Total | 111,895.22 | 111,895.22 |
47. Non-operating revenue
| Item | Current amount | Amount for the previous period | Amount charged to the non-recurring profit or loss of the current period |
| Compensation for power outage | 4,335,500.00 | 4,335,500.00 | |
| Indemnity from insurance companies | 432,328.93 | 432,328.93 | |
| Others | 226,384.24 | 226,384.24 | |
| Total | 4,994,213.17 | 4,994,213.17 |
48. Non-operating expenses
| Item | Current amount | Amount for the previous period | Amount charged to the non-recurring profit or loss of the current period |
| External donation | 10,000.00 | ||
| Losses due to damage and scrapping of non-current assets | 5,873.61 | 880.34 | 5,873.61 |
| Others | 334.71 | 217,615.51 | 334.71 |
| Total | 6,208.32 | 228,495.85 | 6,208.32 |
49. Income tax expenses
Table of income tax expenses
| Item | Current amount | Amount for the previous period |
| Income tax expenses of the current period | 479.55 | |
| Deferred income tax expenses | ||
| Total | 479.55 |
50. Earnings per share
a) Basic earnings per share
Basic earnings per share are calculated by dividing the consolidated net profitattributable to ordinary shareholders of the parent company by the weightedaverage of the Company's outstanding ordinary shares:
| Item | Current amount | Amount for the previous period |
| Consolidated net profit attributable to ordinary shareholders of the parent company | -37,240,739.56 | -94,098,149.09 |
| Weighted average of the Company's outstanding ordinary shares | 602,762,596.00 | 602,762,596.00 |
| Basic earnings per share | -0.0618 | -0.1561 |
b) Diluted earnings per share
| Item | Current amount | Amount for the previous period |
| Consolidated net profit (diluted) attributable to ordinary shareholders of parent company | -37,240,739.56 | -94,098,149.09 |
| Weighted average of the Company's outstanding ordinary shares (diluted) | 602,762,596.00 | 602,762,596.00 |
| Diluted earnings per share | -0.0618 | -0.1561 |
51. Items of statement of cash flows
a) Other cash received related to operating activities
| Item | Current amount | Amount for the previous period |
| Interest income | 5,037,876.59 | 4,800,937.34 |
| Government subsidies | 693,966.28 | 1,048,439.60 |
| Current accounts received | - | 38,142,088.17 |
| Others | 6,564,756.22 | 1,502,291.50 |
| Total | 12,296,599.09 | 45,493,756.61 |
b) Cash paid for other operating activities related
c) Cash paid for other investing activities
| Item | Current amount | Amount for the previous period |
| Cash paid for the purchase of negotiable certificates of deposit | 50,000,000.00 | |
| Cash paid for the disposal of fixed assets | ||
| Total | 50,000,000.00 |
d) Cash paid for other financing activities related
| Item | Current amount | Amount for the previous period |
| Performance bond | 5,440,434.23 | |
| Total | 5,440,434.23 |
52. Supplementary information to statement of cash flows
a) Supplementary information to statement of cash flows
| Supplementary information | Current amount | Amount for the previous period |
| 1. Adjust the net profit to the cash flow of operating activities | ||
| Net profit | -42,690,091.11 | -101,765,725.67 |
| Plus: credit impairment loss | ||
| Provision for asset impairment | ||
| Depreciation and amortization of the investment properties | 84,388.80 | 91,318.80 |
| Depreciation of fixed assets | 13,874,121.49 | 14,917,695.19 |
| Depreciation of right-of-use assets | 2,720,335.74 | |
| Amortization of intangible assets | 344,926.02 | 344,440.86 |
Item
| Item | Current amount | Amount for the previous period |
| Cash paid for G&A expenses, R&D expenses and selling and distribution expenses | 17,969,237.13 | 21,958,179.33 |
| Current accounts paid | 410,000.00 | 384,000.00 |
| Total | 18,379,237.13 | 22,342,179.33 |
| Supplementary information | Current amount | Amount for the previous period |
| Amortization of long-term deferred expenses | 248,665.56 | 248,665.56 |
| Losses from disposal of fixed assets, intangible assets and other long-term assets (gains are listed with "-") | -111,895.22 | |
| Losses on write-off of fixed assets (gains are listed with "-") | 5,873.61 | 880.34 |
| Losses from changes in fair value (gains are listed with "-") | ||
| Financial expenses (gains are listed with "-") | 11,768,338.22 | 20,539,845.79 |
| Investment loss (gains are listed with "-") | -19,725,870.53 | -27,741,227.07 |
| Decreases in deferred tax assets (increases are listed with "-") | ||
| Increases in deferred tax liabilities (decreases are listed with "-") | ||
| Decreases in inventories (increases are listed with "-") | 283,099.78 | 2,347,438.40 |
| Decreases of operating receivables (increase are listed with "-") | -25,420,031.99 | 314,198,626.07 |
| Increase of operating payables (decrease are listed with “-”) | 1,601,650.09 | -22,593,874.97 |
| Others | ||
| Net cash flow from operating activities | -57,016,489.54 | 200,588,083.30 |
| 2. Significant investing and financing activities not involving cash inflows and outflows | ||
| Conversion of debt into capital | ||
| Convertible corporate bonds maturing within one year | ||
| Fixed assets acquired under financing leases | ||
| 3. Net change in cash and cash equivalents | ||
| Ending balance of cash | 260,399,636.35 | 470,018,109.19 |
| Less: beginning balance of cash | 648,021,672.06 | 456,751,614.75 |
| Plus: Ending balance of cash equivalents | ||
| Less: beginning balance of cash equivalents | - | 232,853,018.84 |
| Net increase in cash and cash equivalents | -387,622,035.71 | -219,586,524.40 |
b) Composition of cash and cash equivalents
| Item | Ending balance | Ending balance last year |
| I. Cash | 260,399,636.35 | 648,021,672.06 |
| Including: cash on hand | 30,624.14 | 37,698.63 |
| Bank deposit available for payment at any time | 260,369,004.01 | 647,983,965.23 |
| Other cash and cash equivalents available for payment at any time | 8.20 | 8.20 |
| Item | Ending balance | Ending balance last year |
| Deposits in the central bank available for payment | ||
| Deposit of interbank amount | ||
| Loans to banks and other financial institutions | ||
| II. Cash equivalents | ||
| Including: Bond investments maturing within three months | ||
| III. Ending balance of cash and cash equivalents | 260,399,636.35 | 648,021,672.06 |
| Including: cash and cash equivalents with restricted use by parent company or subsidiaries within the group |
53. Assets with restrictions on the ownership or use right
| Item | Book value at the end of the period | Reason for restriction |
| Cash and cash equivalents | 32,915,028.57 | Note guarantee deposits and performance guarantee deposits |
| Total | 32,915,028.57 |
54. Monetary items in foreign currency
a) Monetary items in foreign currency
| Item | Ending balance of foreign currency | Exchange rate of conversion | Ending balance of translated RMB |
| Cash and cash equivalents | |||
| Including: USD | 836,529.86 | 7.22580 | 6,044,597.46 |
| EUR | 1,017.87 | 7.87710 | 8,017.86 |
| HKD | 268,947.70 | 0.92198 | 247,964.40 |
| SGD | 3,573.03 | 5.3442 | 19,094.99 |
55. Government subsidies
a) Government subsidies related to assets
| Category | Amount | Items presented on the | Amount included in the current profit or loss or used to offset the losses of relevant costs | Items included in the current |
| balance sheet | Current amount | Amount for the previous period | profit or loss or used to offset the losses of related costs | ||
| Subsidies for transformation of low nitrogen projects | 43,032,780.00 | Deferred income | 252,422.00 | 234,909.80 | Other income |
| Support fund for sludge drying project circular economy | 11,750,000.00 | Deferred income | 127,500.00 | 323,501.46 | Other income |
| Government bond subsidies for sludge drying project | 5,100,000.00 | Deferred income | 323,501.46 | 127,500.00 | Other income |
| Subsidies for the improvement of atmospheric environment quality in Shenzhen | 70,977,273.00 | Deferred income | 2,365,909.08 | 2,365,909.08 | Other income |
| Special funds for energy conservation and emission reduction | 1,530,000.00 | Deferred income | 57,018.66 | 57,018.66 | Other income |
| Funding scheme for the motor energy efficiency improvement | 518,400.00 | Deferred income | 17,280.00 | 17,280.00 | Other income |
| Funding for technological transformation investment project in 2021-2022 | 1,060,000.00 | Deferred income | 35,333.34 | 22,333.32 | Other income |
| Total | 133,968,453.00 | 3,178,964.54 | 3,148,452.32 |
b) Government subsidies related to revenue
| Category | Amount | Amount included in the current profit or loss or used to offset the losses of relevant costs | Items included in the current profit or loss or used to offset the losses of related costs | |
| Current amount | Amount for the previous period | |||
| National High Multiplication Plan | 100,000.00 | 100,000.00 | 643,800.00 | Other income |
| Refund of personal income tax | 74,806.72 | 74,806.72 | 243,753.86 | Other income |
| Lump-sum subsidies for training of workers on post | 128,000.00 | Other income | ||
| Subsidies for pilot demonstration of industrial "carbon peaking" | 200,000.00 | Other income | ||
| Subsidies for stabilizing posts | 115,000.00 | 115,000.00 | 76,639.60 | Other income |
| Sci-tech innovation voucher | 296,500.00 | 296,500.00 | Other income | |
| Subsidies for supporting green and low-carbon development projects of enterprises | 300,000.00 | 300,000.00 | Other income | |
| Category | Amount | Amount included in the current profit or loss or used to offset the losses of relevant costs | Items included in the current profit or loss or used to offset the losses of related costs | |
| Current amount | Amount for the previous period | |||
| Total | 886,306.72 | 886,306.72 | 1,292,193.46 | |
VI. Changes in the scope of consolidation
There were no changes to the companies included in the scope of consolidated statementsduring the reporting period.
VII. Equity in other entities
1. Equity in subsidiaries
a) Structure of the enterprise group
| Name of subsidiaries | Main place of business | Place of registration | Nature of business | Shareholding ratio (%) | Method of acquisition | |
| Direct | Indirect | |||||
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | Zhongshan | Zhongshan | Electricity | 55.00 | 25.00 | Establishment |
| Shenzhen Shennandian Turbine Engineering Technology Co., Ltd. | Shenzhen | Shenzhen | Engineering service | 60.00 | 40.00 | Establishment |
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | Shenzhen | Shenzhen | Sludge drying | 70.00 | 30.00 | Establishment |
| Shenzhen Server Petrochemical Supplying Co., Ltd. | Shenzhen | Shenzhen | Energy trade | 50.00 | Establishment | |
| Shenzhen New Power Industrial Co., Ltd. | Shenzhen | Shenzhen | Electricity | 75.00 | 25.00 | Establishment |
| Shen Nan Energy (Singapore) Co., Ltd. | Singapore | Singapore | Investment | 100.00 | Establishment | |
| Hong Kong Xingdesheng Co., Ltd. | Hong Kong | Hong Kong | Investment | 100.00 | Establishment | |
| Zhongshan Shen Nan Dian Warehousing Co., Ltd. | Zhongshan | Zhongshan | Warehousing | 80.00 | Establishment | |
| Zhuhai Hengqin Zhuozhi Investment Partnership Enterprise (Limited Partnership) | Zhuhai | Zhuhai | Investment | 99.96 | Establishment | |
b) Significant non-wholly-owned subsidiaries
| Name of subsidiaries | Shareholding ratio of minority shareholders (%) | Current profit or loss attributable to minority shareholders | Ending balance of minority equity |
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | 20.00 | -4,797,782.18 | -104,957,452.13 |
c) Key financial information of major non-wholly-owned subsidiaries
| Name of subsidiaries | Ending balance /RMB | Balance at the end of last year/RMB | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. ("Zhongshan Electric Power") | 46,730,850.08 | 211,989,456.34 | 258,720,306.42 | 778,465,223.72 | 5,042,343.35 | 783,507,567.07 | 43,407,571.96 | 216,418,067.18 | 259,825,639.14 | 755,501,588.98 | 5,122,399.93 | 760,623,988.91 |
| Name of subsidiaries | Current amount/RMB | Amount for the previous period/RMB | ||||||
| Operating revenue | Net profit | Total comprehensive income | Cash flow from operating activities | Operating revenue | Net profit | Total comprehensive income | Cash flow from operating activities | |
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. ("Zhongshan Electric Power") | 43,549,971.34 | -23,988,910.88 | -23,988,910.88 | -1,700,627.90 | 16,508,874.54 | -30,324,465.11 | -30,324,465.11 | -53,373,996.76 |
2. Equity in the joint venture arrangements or associates
a) Significant joint ventures or associates
| Name of joint ventures or associates | Main place of business | Place of registration | Main business activities | Shareholding ratio (%) | Accounting treatment for investment in joint ventures or associates | |
| Direct | Indirect | |||||
| Huidong Server Harbor Comprehensive Development Company | Renshan Town, Huidong County | Renshan Town, Huidong County | Wharf operation | 40.00 | Equity method | |
| Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. | Yixing, Jiangsu | Yixing, Jiangsu | Environmental protection | 9.935 | Equity method | |
b) Key financial information of joint ventures or associates
| Ending balance/Current amount | Balance at the end of the previous year/Amount for the previous period | |||
| Liaoyuan Environmental Protection | Huidong Server | Liaoyuan Environmental Protection | Huidong Server | |
| Total of investment book value | 79,175,883.44 | 4,748,821.29 | 79,082,076.44 | 4,414,021.80 |
| Total amounts of the following items calculated at shareholding ratio | ||||
| - Net profit | 1,308,357.00 | 334,799.49 | 6,208,396.44 | -2,572,633.39 |
| - Other comprehensive income | ||||
| - Total comprehensive income | 1,308,357.00 | 334,799.49 | 6,208,396.44 | -2,572,633.39 |
VIII. Risks associated with financial instruments
The Company's main financial instruments include equity investments, notes receivable,long-term and short-term borrowings, accounts receivable, accounts payable, otherpayables, etc. See details of each financial instrument in related items of Note III (X).Risks associated with these financial instruments and the risk management policiesadopted by the Group to mitigate these risks are described below. The Group'smanagement manages and monitors these exposures to ensure that the risks are controlledwithin certain limits.The Company adopts the sensitivity analysis technique to analyze the possible impact ofreasonable and possible changes in risk variables on the current profit or loss or
shareholders' equity. As any risk variable seldom changes in isolation, and the correlationbetween the variables will have a significant effect on the final affected amount of thechange of a risk variable, the following contents are carried out under the assumption thatthe change of each variable is independently:
1. Credit risk
The credit risk refers to the risk of financial loss to the other party due to the failure of oneparty to perform its obligations financial instruments. The Company mainly facescustomer credit risks caused by sales on account. Prior to the conclusion of a new contract,the Company will evaluate the credit risk of the new customer, including external creditratings and bank reference certificate under some circumstances (if it is readily available).The Company has set a credit limit for each customer, which is the maximum amountwithout additional approval.The Company ensures its overall credit risk remains within a controllable range throughquarterly monitoring of existing customers' credit ratings and monthly review of accountsreceivable aging analysis. When monitoring the customers' credit risks, the Company willdivide them into groups by their credit characteristics. Customers classified as "high risk"are placed on the restricted customer list, and the Company can extend credit to them infuture periods only with additional approval. Otherwise, the Company must requestadvance payment for the corresponding amounts.
2. Market risk
Market risk associated with financial instruments refers to the risk that fair value or futurecash flows of financial instruments fluctuate due to variations in market prices, and itincludes exchange rate risk, interest rate risk and other price risks.
(1) Interest rate risk
The Company's risk of changes in cash flows of financial instruments due to changes ininterest rates is mainly related to bank borrowings with floating interest rates.Sensitivity analysis of interest rate risk:
Sensitivity analysis of interest rate risk is based on the following assumptions:
Changes in market interest rates affect the interest income or expenses of the variable ratefinancial instruments. For fixed-rate financial instruments measured at fair value, changesin market interest rates only affect their interest income or expenses. For derivativefinancial instruments designated as hedging instruments, changes in market interest rates
affect their fair value and all interest rate hedges are highly effective. Changes in the fairvalue of derivative financial instruments and other financial assets and liabilities arecalculated using the cash flow discount method at the market interest rate on the balancesheet date.As of June 30, 2023, the Company's bank loan interest calculated at floating interest ratesamounted to RMB1,644,773.76. On the basis of the above assumptions and with othervariables unchanged, it is assumed that the pre-tax impact of a 5% change in interest rateon the current profit or loss and shareholders' equity is as follows:
| Change in interest rate | Current amount | Same period last year | ||
| Impact on profit | Impact on shareholders' equity | Impact on profit | Impact on shareholders' equity | |
| Increasing by 5% | -82,238.69 | -82,238.69 | -188,647.52 | -188,647.52 |
| Decreasing by 5% | 82,238.69 | 82,238.69 | 188,647.52 | 188,647.52 |
(2) Exchange rate risk
Foreign exchange risk refers to the risk of losses arising from the exchange ratefluctuation. The Company's exposure to foreign exchange risk is mainly related to USdollars. As at June 30, 2023, except for the balance of foreign currency monetary items inNote V(XLVI), the Company's assets and liabilities were the balance in RMB. Theforeign exchange risk arising from the assets and liabilities of such foreign currencybalances may have an impact on the Company's operating results.
3. Liquidity risk
The term "liquidity risk" refers to the risk of shortage of funds when an enterprise fulfillsits obligations of settlement by delivery of cash or other financial assets. It is theCompany's policy to ensure that it has sufficient cash to repay its debts as they fall due.The liquidity risk is under the centralized control of the Company's Finance Department.The Finance Department ensures that the Company has sufficient funds to repay its debtsunder all reasonable forecast circumstances by monitoring its cash balance, marketablesecurities that can be realized at any time and rolling forecast of the cash flow in the next12 months.
IX. Related parties and related party transactions
1. Parent company of the Company
None of the shareholders of the Company holds a stake exceeding 50%, and control overthe Company cannot be established through other means. Therefore, the Company doesnot have a parent company.
2. Subsidiaries of the Company
For details of the Company's subsidiaries, please refer to "VII. (I) Equity in Subsidiaries".
3. Joint ventures and associates of the Company
For details of significant joint ventures or associates of the Company, please refer to "VII.(II) Equity in joint venture arrangements or associates".
4. Other related parties
| Name of other related parties | Relationships between other related parties and the Company |
| Shenzhen Energy Group Co., Ltd. (hereinafter referred to as "Energy Group") | Legal person holding more than 5% of the Company's shares |
| Shenzhen Guangju Industrial Co., Ltd. | Legal person holding more than 5% of the Company's shares |
| HONG KONG NAM HOI (INTERNATIONAL) LTD. | Legal person holding more than 5% of the Company's shares |
| Shenzhen Capital Holdings Co., Ltd. | Legal person who indirectly holds more than 5% of the Company's shares through Energy Group |
| Directors, supervisors, senior officers of the Company | Key management personnel |
5. Receivables from and payables to related parties
a) Receivables
| Project name | Related party | Book balance at the end of period | Book balance at the end of the previous year |
| Other receivables | |||
| Huidong Server | 14,911,484.45 | 14,740,501.44 | |
| Huidong Server co-managed account | 905,705.59 | 900,414.01 | |
| Total | 15,817,190.04 | 15,640,915.45 |
X. Commitments and contingencies
1. Significant commitments
There were no commitments required to be disclosed by the Company as at June 30, 2023.
2. Contingencies
There were no contingencies required to be disclosed by the Company as at June 30, 2023.
XI. Events after the balance sheet date
The Company had no subsequent events that need to be disclosed as of the reporting date.
1. Significant non-adjusting events
None
2. Notes to other events after the balance sheet date
None
XII. Other significant matters
Segment information
1、 Determination basis and accounting policies for reporting segments
According to the Company’s internal organizational structure, managementrequirements and internal reporting system, the Company's operating business isdivided into three business divisions, i.e. electricity generation, electricityengineering and other businesses. The Company’s management regularly evaluatesthe business performance of these divisions to determine the allocation of resourcesand evaluate their performance.Information on segment reporting is disclosed according to the accounting policiesand measurement standards adopted by each segment when reporting to themanagement, and these measurement bases are consistent with the accounting andmeasurement bases when preparing the financial statements.
2、 Financial information of reporting segments
| Item | Electricity generation division | Electricity engineering division | Other segments | Inter-segment offset | Total |
| Operating revenue | 260,912,625.36 | 19,368,926.99 | 550,285.74 | 9,563,653.04 | 271,268,185.05 |
| Item | Electricity generation division | Electricity engineering division | Other segments | Inter-segment offset | Total |
| Operating costs | 281,278,611.26 | 13,411,721.57 | 84,388.80 | 9,406,791.73 | 285,367,929.90 |
| Total assets | 1,970,158,049.37 | 96,168,091.09 | 396,943,342.40 | 480,750,700.24 | 1,982,518,782.62 |
| Total liabilities | 757,736,515.40 | 59,459,733.17 | 36,353,724.25 | 221,379,589.61 | 632,170,383.21 |
XIII. Notes to the main items of the parent company's financial statements
1. Accounts receivable
a) Accounts receivable disclosed by aging
| Aging | Ending balance | Ending balance last year |
| Within 1 year | 54,764,958.01 | 47,995,982.82 |
| More than 3 years | ||
| Sub-total | 54,764,958.01 | 47,995,982.82 |
| Less: provision for bad debts | ||
| Total | 54,764,958.01 | 47,995,982.82 |
b) Disclosure of accounts receivable by category based on provision method for
bad debts
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Ratio of provision (%) | ||
| Provision for bad debts accrued on an individual basis | |||||
| Provision for bad debts by portfolio of risk characteristics | 54,764,958.01 | 100 | 54,764,958.01 | ||
| Including: risk-free portfolio | 54,764,958.01 | 100 | 54,764,958.01 | ||
| Total | 54,764,958.01 | 100 | 54,764,958.01 | ||
| Category | Ending balance last year | ||
| Book balance | Provision for bad debts | Book value | |
| Amount | Ratio (%) | Amount | Ratio of provision (%) | ||
| Provision for bad debts accrued on an individual basis | |||||
| Provision for bad debts by portfolio of risk characteristics | 47,995,982.82 | 100 | 47,995,982.82 | ||
| Including: risk-free portfolio | 47,995,982.82 | 100 | 47,995,982.82 | ||
| Total | 47,995,982.82 | 100 | 47,995,982.82 |
Provision for bad debts made by portfolio:
| Name | Ending balance | ||
| Accounts receivable | Provision for bad debts | Ratio of provision (%) | |
| Electricity charges receivable | 54,764,958.01 | ||
| Total | 54,764,958.01 | ||
c) Top 5 accounts receivable in terms of ending balances due from debtors
| Company name | Book balance | Ratio in the balance of accounts receivable (%) | Ending balance of the provision for bad debts |
| No.1 | 54,764,958.01 | 100 | |
| Total | 54,764,958.01 | 100 |
2. Other receivables
| Item | Ending balance | Ending balance last year |
| Interest receivable | ||
| Dividends receivable | ||
| Other accounts receivable | 919,550,297.33 | 851,189,111.89 |
| Total | 919,550,297.33 | 851,189,111.89 |
a) Other accounts receivable
(1) Disclosure by aging
| Aging | Ending balance | Ending balance last year |
| Aging | Ending balance | Ending balance last year |
| Within 1 year | 520,717,149.91 | 452,449,473.00 |
| 1-2 years | 94,734,608.45 | 94,733,821.40 |
| 2-3 years | 19,926.83 | 19,926.83 |
| More than 3 years | 331,408,255.58 | 331,315,534.10 |
| Sub-total | 946,879,940.77 | 878,518,755.33 |
| Less: provision for bad debts | 27,329,643.44 | 27,329,643.44 |
| Total | 919,550,297.33 | 851,189,111.89 |
(2) Disclosure by category
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Ratio of provision (%) | ||
| Provision for bad debts accrued on an individual basis | 27,617,758.22 | 2.92 | 27,329,643.44 | 98.96 | 288,114.78 |
| Provision for bad debts by portfolio of risk characteristics | 919,262,182.55 | 97.08 | 919,262,182.55 | ||
| Including: low-risk portfolio | 919,262,182.55 | 97.08 | 919,262,182.55 | ||
| Total | 946,879,940.77 | 100 | 27,329,643.44 | 3.11 | 919,550,297.33 |
| Category | Ending balance last year | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Ratio of provision (%) | ||
| Provision for bad debts accrued on an individual basis | 27,617,758.22 | 3.14 | 27,329,643.44 | 98.96 | 288,114.78 |
| Provision for bad debts by portfolio of risk characteristics | 850,900,997.11 | 96.86 | 850,900,997.11 | ||
| Including: low-risk portfolio | 850,900,997.11 | 96.86 | 850,900,997.11 | ||
| Total | 878,518,755.33 | 100.00 | 27,329,643.44 | 3.11 | 851,189,111.89 |
Provision for bad debts made on an individual basis:
| Name | Ending balance | |||
| Book balance | Provision for bad debts | Ratio of provision (%) | Reason for provision | |
| Individual income tax | 2,470,039.76 | 2,470,039.76 | 100.00 | Estimated to be irrecoverable |
| Dormitory amounts receivable | 1,736,004.16 | 1,736,004.16 | 100.00 | Estimated to be irrecoverable |
| Huiyang County Kangtai Industrial Company | 14,311,626.70 | 14,311,626.70 | 100.00 | Estimated to be irrecoverable |
| Accounts receivable from individuals | 7,498,997.87 | 7,498,997.87 | 100.00 | Estimated to be irrecoverable |
| Others | 1,601,089.73 | 1,312,974.95 | 82.01 | Estimated to be irrecoverable |
| Total | 27,617,758.22 | 27,329,643.44 | 98.96 | |
(3) Provision for bad debts
| Provision for bad debts | First stage | Second stage | Third stage | Total |
| Expected credit loss for the next 12 months | Expected credit loss over the whole life (without credit impairment) | Expected credit loss over the whole life (with credit impairment) | ||
| Beginning balance | 27,329,643.44 | 27,329,643.44 | ||
| Beginning balance in the current period | ||||
| - Carried forward to the second stage | ||||
| - Carried forward to the third stage | ||||
| - Reversal to the second stage | ||||
| - Reversal to the first stage | ||||
| Provision in the current period | ||||
| Reversal in the current period | ||||
| Charge-off in the current period | ||||
| Write-off in current period | ||||
| Other changes | ||||
| Ending balance | 27,329,643.44 | 27,329,643.44 |
(5) Classification by nature of payment
| Nature of payment | Book balance at the end of period | Book balance at the end of the previous year |
| Transactions beween related parties | 919,379,250.99 | 850,503,678.18 |
| Dormitory amounts receivable | 1,736,004.16 | 1,736,004.16 |
| Deposits receivable | 1,601,089.73 | 1,601,089.73 |
| Accounts receivable from individuals | 7,591,575.29 | 7,615,145.44 |
| Others | 16,572,020.60 | 17,062,837.82 |
| Sub-total | 946,879,940.77 | 878,518,755.33 |
| Less: provision for bad debts | 27,329,643.44 | 27,329,643.44 |
| Total | 919,550,297.33 | 851,189,111.89 |
3. Long-term equity investments
| Item | Ending balance | Ending balance last year | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Investments in subsidiaries | 718,091,322.09 | 445,002,245.26 | 273,089,076.83 | 718,091,322.09 | 445,002,245.26 | 273,089,076.83 |
| Investments in joint ventures and associates | 79,175,883.44 | 79,175,883.44 | 79,082,076.44 | 79,082,076.44 | ||
| Total | 797,267,205.53 | 445,002,245.26 | 352,264,960.27 | 797,173,398.53 | 445,002,245.26 | 352,171,153.27 |
a) Investments in subsidiaries
| Investees | Ending balance last year | Increase in the current period | Decrease in the current period | Ending balance | Provision for impairment made in the current period | Ending balance of the provision for impairment |
| Shenzhen Server Petrochemical Supplying Co., Ltd. | 26,650,000.00 | 26,650,000.00 | ||||
| Shen Nan Energy (Singapore) Co., Ltd. | 6,703,800.00 | 6,703,800.00 | ||||
| Shenzhen New Power Industrial Co., Ltd. | 71,270,000.00 | 71,270,000.00 | 13,709,556.49 | |||
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | 410,740,000.00 | 410,740,000.00 | 410,740,000.00 | |||
| Shenzhen Shennandian | 6,000,000.00 | 6,000,000.00 |
| Investees | Ending balance last year | Increase in the current period | Decrease in the current period | Ending balance | Provision for impairment made in the current period | Ending balance of the provision for impairment |
| Turbine Engineering Technology Co., Ltd. | ||||||
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | 55,300,000.00 | 55,300,000.00 | 20,552,688.77 | |||
| Zhuhai Hengqin Zhuozhi Investment Partnership Enterprise (Limited Partnership) | 141,427,522.09 | 141,427,522.09 | ||||
| Total | 718,091,322.09 | - | - | 718,091,322.09 | - | 445,002,245.26 |
b) Investments in associates, joint ventures
| Investees | Ending balance last year | Increase/decrease in the current period | Ending balance | Ending balance of the provision for impairment | |||||||
| Additional investment | Decrease in investment | Profit or loss of investment recognized under the equity method | Adjustment of other comprehensive income | Changes in other equity | Cash dividends or profits declared and distributed | Provision for impairment | Others | ||||
| 1. Associates | |||||||||||
| Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. | 79,082,076.44 | 1,308,357.00 | 1,214,550.00 | 79,175,883.44 | |||||||
| Sub-total | 79,082,076.44 | - | - | 1,308,357.00 | - | - | 1,214,550.00 | - | - | 79,175,883.44 | |
| Total | 79,082,076.44 | - | - | 1,308,357.00 | - | - | 1,214,550.00 | - | - | 79,175,883.44 | |
4. Operating revenue and operating costs
| Item | Current amount | Amount for the previous period | ||
| Revenue | Costs | Revenue | Costs | |
| Main business | 123,160,499.18 | 167,370,297.62 | 96,445,440.00 | 153,240,868.95 |
| Other business | 44,602,733.18 | 14,977.28 | 32,628,912.66 | 2,830.19 |
| Total | 167,763,232.36 | 167,385,274.90 | 129,074,352.66 | 153,243,699.14 |
5. Investment income
| Item | Current amount | Amount for the previous period |
| Income from long-term equity investments accounted for by using the equity method | 1,308,357.00 | |
| Investment income from trading financial assets during the holding period | 9,342,507.91 | 28,915,295.59 |
| Dividend income earned during the holding period of investments in other equity instruments | 340,206.13 | |
| Dividends from long-term equity investments | 6,717,600.82 | |
| Total | 17,708,671.86 | 28,915,295.59 |
XIV. Supplementary information
1. Breakdown of the current non-recurring profit or loss
| Item | Amount | Description |
| Profit or loss from disposal of non-current assets | 106,021.61 | |
| Tax returns, deduction and exemption approved beyond the authority or without official approval documents | ||
| Government subsidies included in the current profit or loss (except for government subsidies closely related to the enterprise business, obtained by quota or quantity at unified state standards) | 4,065,271.26 | |
| Expenses for using funds charged from non-financial enterprises and included in the current profit or loss | ||
| Gains arising from the difference between the investment costs of acquiring subsidiaries, associates and joint ventures in short of the fair value of the identifiable net assets of the investees enjoyed by the enterprise at the time of acquiring investment | ||
| Profit or loss from exchange of non-monetary assets | ||
| Profit or loss from entrusting others to invest in or manage assets | ||
| Various provision for asset impairment made due to force majeure factors, such as natural disasters | ||
| Profit or loss from debt restructuring |
| Item | Amount | Description |
| Enterprise reorganizing expenses, such as employee accommodation costs and integration expenses, etc. | ||
| Profit or loss in excess of the fair value arising from transactions with obviously unfair transaction price | ||
| Current net profit or loss of the subsidiaries from business combination under the same control from the beginning of the period to the merger date | ||
| Profit or loss from contingencies unrelated to the Company's normal business | ||
| Profit or loss from changes in fair value arising from holdings of trading financial assets and trading financial liabilities and investment income from disposal of trading financial assets, trading financial liabilities and available-for-sale financial assets, except for the effective hedging business related to the Company's normal business operations | 9,342,507.91 | |
| Reversal of provision for impairment of accounts receivable subject to separate impairment test | ||
| Profit or loss from external entrusted loans | ||
| Profit or loss from changes in fair value of investment properties subsequently measured using the fair value model | ||
| Impact of one-off adjustment to the current profit or loss in accordance with laws and regulations on taxation and accounting on the current profit or loss | ||
| Revenue of trusteeship fees from entrusted operation | ||
| Other non-operating revenue and expenses other than the above items | 4,993,878.46 | |
| Other profit or loss that meet the definition of non-recurring profit or loss | ||
| Sub-total | 18,507,679.24 | |
| Less: effect of income tax | ||
| Less: minority equity impact | 871,088.17 | |
| Total | 17,636,591.07 |
2. Rate of return on net assets and earnings per share
| Profit during the reporting period | Weighted average rate of return on net assets (%) | Earnings per share (RMB) | |
| Basic earnings per share | Diluted earnings per share | ||
| Net profit attributable to ordinary shareholders of the Company | -2.59 | -0.0618 | -0.0618 |
| Net profit attributable to ordinary shareholders of the Company after deducting non-recurring profit or loss | -3.82 | -0.0910 | -0.0910 |
Shenzhen Nanshan Power Co., Ltd.
August 23, 2023