Stock Code: 000037, 200037 Notice No.: 2019-048 Short Form of the Stock: Shen Nan Dian A, Shen Nan Dian B
Shenzhen Nanshan Power Co., Ltd.
Summary of Semi-Annual Report 2019
I. Important NoticeThe summary is abstract from full-text of semi-annual report, for more details of operating results, financial condition and futuredevelopment plan of the Company; investors should found in the full-text of semi-annual report that published on media appointedby CSRC.Objection statement of directors, supervisors and senior executives
| Name | Position | Content and reason |
StatementOther directors attending the Meeting for semi-annual report deliberation except for the followed
| Name of director absent | Title for absent director | Reasons for absent | Attorney |
Prompt of non-standard audit opinion
□ Applicable √ Not applicable
Profit distribution pre-plan of common stock or capitalizing of common reserves pre-plan deliberated by the Board in the reportingperiod
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve.Profit distribution pre-plan of preferred stock deliberated and approved by the Board in the reporting period
□ Applicable √ Not applicable
II. Company profile
1. Company Profile
| Short form of the stock | Shen Nan Dian A, Shen Nan Dian B | Stock code | 000037、200037 | |
| Stock exchange for listing | Shenzhen Stock Exchange | |||
| Person/Way to contact | Secretary of the Board | Rep. of security affairs | ||
| Name | Zhang Jie | |||
| Office add. | 16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, Guangdong Province | |||
| Tel. | 0755-26003611 | |
| investor@nspower.com.cn |
2. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes √ No
| Current period | Same period of last year | Increase/decrease in this report y-o-y | |
| Operating revenue (RMB) | 408,124,616.38 | 1,079,760,214.80 | -62.20% |
| Net profit attributable to shareholders of the listed company (RMB) | -25,283,190.82 | 30,012,095.22 | -184.24% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | -28,106,510.82 | 28,904,372.78 | -197.24% |
| Net cash flow arising from operating activities (RMB) | 56,217,376.89 | 52,590,634.28 | 6.90% |
| Basic earnings per share (RMB/Share) | -0.04 | 0.05 | -180.00% |
| Diluted earnings per share (RMB/Share) | -0.04 | 0.05 | -180.00% |
| Weighted average ROE | -1.43% | 1.46% | -2.89% |
| End of current period | End of last period | Increase/decrease in this report-end over that of last period-end | |
| Total assets (RMB) | 3,414,007,712.04 | 3,307,148,289.92 | 3.23% |
| Net assets attributable to shareholder of listed company (RMB) | 1,952,588,660.69 | 1,977,871,851.51 | -1.28% |
3. Number of shares and shares held
In Share
| Total common stock shareholders in reporting period-end | 28,383 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) | 0 | ||||||
| Top ten shareholders | |||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Shareholding numbers | Amount of restricted shares held | Number of share pledged/frozen | ||||
| State of share | Amount | ||||||||
| HONG KONG NAM HOI (INTERNATIONAL) LTD | Overseas corporate | 15.28% | 92,123,248 | 0 | |||||
| Shenzhen Guangju Industrial Co., Ltd. | State-owned corporate | 12.22% | 73,666,824 | 0 | |||||
| Shenzhen Energy Group | State-owned corporate | 10.80% | 65,106,130 | 0 | |||||
| Co., Ltd. | ||||||
| Gaohua－HSBC－GOLDMAN, SACHS & CO.LLC | Overseas corporate | 2.13% | 12,839,723 | 0 | ||
| BOCI SECURITIES LIMITED | Overseas corporate | 1.58% | 9,500,745 | 0 | ||
| Liu Fang | Domestic nature person | 1.35% | 8,158,788 | 0 | ||
| China Merchants Securities (HK) Co., Limited | State-owned corporate | 1.34% | 8,091,708 | 0 | ||
| Zeng Ying | Domestic nature person | 1.26% | 7,595,000 | 0 | ||
| Meiyi Investment Property Co., Ltd. | Domestic non-state-owned corporate | 0.86% | 5,206,000 | 0 | ||
| LI SHERYN ZHAN MING | Overseas nature person | 0.73% | 4,407,010 | 0 | ||
| Explanation on associated relationship among the aforesaid shareholders | 1. 100% equity of HONG KONG NAM HOI (INTERNATIONAL) LIMITED100% held by SHENZHEN ENERGY (GROUP) CO., LTD 2. The Company is unknown whether there exists associated relationship or belongs to the consistent actor among the other shareholders. | |||||
| Shareholders involving margin business | Among the top ten shareholders, Ms. Liu Fang holds 3,346,188 shares through credit transaction guarantee securities account | |||||
4. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
Changes of controlling shareholders had no change in reporting period.Changes of actual controller in reporting period
□ Applicable √ Not applicable
Changes of actual controller in reporting period had no change in reporting period.
5. Total preferred stock shareholders of the Company and shares held by top ten shareholders withpreferred stock held
□ Applicable √ Not applicable
No preferred stock in reporting period.
6. Corporation Bonds
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date whenannual report approved for released or fail to cash in full on dueNo
III. Discussion and analysis by the Management Team
1. Introduction of operation in the reporting period
Dose the Company need to comply with disclosure requirements of the special industryNoIn the first half of 2019, China's macro economy was generally smooth and stable, but the downward pressure has increased. Theeconomic operation of Guangdong Province has also continued to be stable, and the main leading indicators of the industrialeconomy are generally better than the same period last year. According to the statistics and analysis of relevant departments, fromJanuary to June, the whole province’s total electricity consumption reached 302.750 billion kwh, an increase of 3.31% on ayear-on-year basis, electricity demand continues to grow with a slower pace.
During the reporting period, the operating situation of the company's main power business was even more severe. Under the dualpressures of high natural gas prices and lowered feed-in tariffs, the company continued to adhere to the “1+5” strategic road map, andadopted a series of effective measures by scientific decision-making and active planning and efficient implementation to fully copewith changes in the external situation, and maximized the reduction of losses and the profits: First, the power business wasmarket-oriented, and scientific decision-making created benefits. Faced with the intensification of the marketization of power trading,the company actively responded to the trend and shifted its business focus from power generation to electricity market transactions, andcarefully formulated power marketing trading strategies to achieve more economic benefits under the existing conditions. Second,broadened the procurement channels for gas sources and strive to reduce fuel procurement costs. By strengthening communication withsuppliers and actively expanding gas procurement channels, we increased the market bargaining power and controlled the fuelprocurement costs while ensuring natural gas supply. Third, accelerated the integration of industry and finance and improved theeconomic efficiency. We kept up with changes in the external situation, conducted scientific financial analysis and calculationsdynamically, and strengthened the guiding role of finance in all aspects of the company's business activities; at the same time, westrengthened the overall management of funds within the system, took effective measures to reduce capital costs. Fourth, tracked thegovernment's relevant land policy trend to Qianhai and the related work progress, studied the corresponding work strategies, did theirutmost to protect the legitimate rights and interests of the company and shareholders. Fifth, further improved the company'sstandardized operation and governance level, and revised and improved the relevant basic systems in light of the company's actualsituation, and revised some provisions of the “Articles of Association” according to the revision of the “Guidelines for the Articles ofAssociation of Listed Companies” by the China Securities Regulatory Commission. Sixth, continuously strengthened the partybuilding work, and strictly implemented the “three majors and one big” decision-making system, and in accordance with theorganization regulations, the company’s party general branch was promoted to be the party committee, which marked the company'sparty building work entering a new stage.
During the reporting period, the Company achieved operating income of 408.1246 million Yuan, net profit attributable to parentCompany amounted as (25.2832) million Yuan, basic earnings per share comes to (0.04) Yuan.
2. Relevant items involving financial report
(1) Particulars about the changes in aspect of accounting policy, estimates and calculation methodcompared with the financial report of last fiscal period
√Applicable □ Not applicable
1. Changes of accounting policies
Changes in accounting policies for execution of the new financial instrument standardsOn March 31, 2017, the Ministry of Finance revised and issued the Accounting Standards for Business Enterprises No. 22 -
Recognition and Measurement of Financial Instruments (Revised in 2017) (CK [2017] No. 7) and Accounting Standards for BusinessEnterprises No. 23 - Transfer of Financial Assets (Revised in 2017) (CK [2017] No. 8), Accounting Standards for BusinessEnterprises No. 24 - Hedge Accounting (Revised in 2017) (CK [2017] No. 9), and issued and revised the Accounting Standards forBusiness Enterprises No. 37 – Financial Instruments Presentation (Revised in 2017) (CK [2017] No. 14) on May 2, 2017 (theabove-mentioned four standards are collectively referred to as the “New Financial Instruments Standards”), relevant accountingpolicy are adjusted correspondingly. On 15 June 2018, the Notice on Revising and Printing the Format of Financial Statements forGeneral Enterprises in 2018 was issued, revising the format of financial statements for general enterprises. In accordance with theabove mentioned requirement, the Company needs to adjust relevant contents with accounting policy concerned.Main changes and influences of the Company for implementing the new financial instrument standards:
①Category and measuring contrast of the financial instrument after/before the date when initially implementation
| 2018-12-31（before ） | 2019-1-1（after） | ||||
| Item | Measurement category | Book value | Item | Measurement category | Book value |
| Available-for-sale financial assets | measured by cost (equity instrument) | 60,615,000.00 | Other equity instrument investment | Measured by fair value and with its variation reckoned into other comprehensive income | 60,615,000.00 |
②On first implementation day, adjustment statement of the category and measurement for former financial instrument and thoseadjusted with new financial instrument standards
| Item | 2018-12-31（before） | Re-classified | 2019-1-1（after） |
| Measured by fair value and with its variation reckoned into other comprehensive income: | |||
| Available-for-sale financial assets (former standard) | 60,615,000.00 | ||
| Less: transfer to other equity instrument investment | 60,615,000.00 | ||
| Balance under new financial instrument standard | |||
| Other equity instrument investment | |||
| Add: transfer in from available-for-sale financial assets (former standard) | 60,615,000.00 | ||
| Balance under new financial instrument standard | 60,615,000.00 |
2. Change of accounting estimate
No changes of accounting estimate in the period
(2) Major accounting errors within reporting period that needs retrospective restatement
□ Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in reporting period.
(3) Particulars about the change of consolidation range compared with the financial report of last fiscalperiod
□ Applicable √ Not applicable
The Company had no particular about the change of consolidation range compared in reporting period.