Stock Code: 000037, 200037 Short Form of Stock: Shen Nan Dian A, Shen Nan Dian B No.: 2021-041
深圳南山热电股份有限公司Shenzhen Nanshan Power Co., Ltd.
Semi-annual Report 2021
August 2021
Section I. Important Notice, Contents and InterpretationBoard of Directors, Supervisory Committee, all directors, supervisors and seniorofficers of Shenzhen Nanshan Power Co., Ltd. (hereinafter, the Company)guarantee that the Semi-Annual Report contains no misrepresentations,misleading statements or material omissions, and take all responsibilities,individual and/or joint, for the reality, accuracy and completion of the wholecontents.Principal of the Company- Chairman Li Xinwei, person in charger ofaccounting works- Director and GM Chen Yuhui, and person in charge ofaccounting organ (chief accountants)- deputy GM Shang Ying(chaired thefinancial management dept.) guarantee that the Financial Report of thesemi-annual report disclosed is truthful, accurate and complete.All directors are attended the Board Meeting for the report deliberation.Concerning the forward-looking statements with future planning involved in theSemi-Annual Report, they do not constitute a substantial commitment forinvestors. Investors are advised to exercise caution of investment risks.The Company has no plans of cash dividend distributed, no bonus shares andhas no share converted from capital reserve either in the mid-term.The semi-annual report has been prepared in both Chinese and English, for anydiscrepancies, the Chinese version shall prevail. Please read the full semi-annualreport seriously.
Contents
Section I Important Notice, Contents and Interpretation ...... 2
Section II Company Profile and Main Financial Indexes ...... 6
Section III Management Discussion and Analysis ...... 9
Section IV Corporate Governance ...... 21
Section V Enviornmental and Social Responsibility ...... 24
Section VI Important Events ...... 26
Section VII Changes in shares and particular about shareholders ...... 31
Section VIII Preferred Stock ...... 36Section IX Corporate Bonds ........................................................................... 错误！未定义书签。Section X Financial Report ...... 37
Documents Available for Reference
I. Original Semi-Annual Report of 2021 carrying the signature of the legal representative of the CompanyII. Financial statement with signature and seal of Person in charge of the Company (legal person), person in charge of accountingworks (General manager) and person in charge of accounting organ(chief accountant);III. Text of notice and original draft that public on Securities Times, China Securities Journal and Hong Kong Commercial Dailyduring the reporting period.IV. The place where the document placed: Shenzhen Stock Exchange, Office of Board of Directors of the Company.
Interpretation
| Items | Refers to | Contents |
| Company, the Company, Shen Nan Dian, The listed company | Refers to | Shenzhen Nanshan Power Co., Ltd. |
| Shen Nan Dian Zhongshan Company | Refers to | Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. |
| Shen Nan Dian 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 |
| New Power Company | Refers to | Shenzhen New Power Industrial Co., Ltd. |
| Singapore Company | Refers to | Shen Nan Energy (Singapore) Co., Ltd. |
| Nanshan Power Factory | Refers to | Nanshan Power Factory of Shenzhen Nanshan Power Co., Ltd. |
| Zhongshan Nanlang Power Plant | Refers to | Zhongshan Nanlang Power Plant of Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. |
| Shenzhen Capital | Refers to | Shenzhen Capital Holdings Co., Ltd. |
| Shenzhen Qianhai Authority | Refers to | Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone of Shenzhen Authority |
| Shenzhen SEZ Construction Group | Refers to | Shenzhen SEZ Construction Group Co., Ltd. |
| Audit institution, LIXINZHONGLIAN, accounting organ | Refers to | LIXINZHONGLIAN CPAS (SPECIAL GENERAL PARTNERSHIP) |
| Articles of Association | Refers to | Article of Association of Shenzhen Nanshan Power Co., Ltd. |
| Yuan, ten thousand Yuan, one hundred million | Refers to | Except the special description of the monetary unit, the rest of the monetary unit is RMB Yuan, ten thousand Yuan,one hundred million Yuan |
| Reporting period | Refers to | 1 January 2021 to 30 June 2021 |
Section II. Company Profile and Main Financial Indexes
I. 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 | ||
| Name of the Company (in Chinese) | 深圳南山热电股份有限公司 | ||
| Short form of the Company (in Chinese) (if applicable) | 深南电 | ||
| Foreign name of the Company (if applicable) | Shenzhen Nanshan Power Co., Ltd. | ||
| Legal representative | Li Xinwei | ||
II. Contact person/ways
| Secretary of the Board | Rep. of securities affairs | |
| Name | Zou Yi | |
| Contact adds. | 16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, Guangdong Province | |
| Tel. | 0755-26003611 | |
| Fax. | 0755-26003684 | |
| investor@nspower.com.cn |
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period ornot
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,found more details in Annual Report 2020.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparationplace for semi-annual report have no change in reporting period, found more details in Annual Report 2020.IV. Main accounting data and financial indexesWhether 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) | 376,602,393.38 | 518,150,606.21 | -27.32% |
| Net profit attributable to shareholders of the listed Company(RMB) | 1,456,269.68 | 52,040,498.42 | -97.20% |
| Net profit attributable to shareholders of the listed Company after deducting non-recurring gains and losses(RMB) | -19,517,615.51 | 10,149,730.42 | -292.30% |
| Net cash flow arising from operating activities (RMB) | 68,920,712.99 | 69,936,561.46 | -1.45% |
| Basic earnings per share (RMB/Share) | 0.002 | 0.086 | -97.67% |
| Diluted earnings per share (RMB/Share) | 0.002 | 0.086 | -97.67% |
| Weighted average ROE | 0.07% | 2.57% | -2.50% |
| End of current period | End of last period | Increase/decrease in this report-end over that of last period-end (+,-) | |
| Total assets (RMB) | 3,206,158,742.54 | 3,020,830,930.06 | 6.13% |
| Net assets attributable to shareholder of listed Company (RMB) | 2,056,198,117.32 | 2,054,741,847.64 | 0.07% |
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (InternationalAccounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.VI. Items and amounts of extraordinary profit (gains)/loss
√Applicable □ Not applicable
In RMB
| Item | Amount | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | 974,699.74 | |
| Governmental subsidy calculated into current gains and losses(while closely related with the normal business of the Company, excluding the fixed-amount or fixed-proportion governmental subsidy according to the unified national standard) | 3,368,979.50 | The government subsidy related to assets are being amortized |
| Gains/losses arising from contingency that without relation with the normal operation business of the Company | 5,000,000.00 | Reversal of the accrual liabilities |
| Gains/losses of fair value changes from holding the trading financial asset, derivative financial assets, trading financial liability and derivative financial liability and investment earnings obtained from disposing the trading financial asset, derivative financial assets, trading financial liability, derivative financial liability and other debt investment, except for the effective hedging business related to normal operation of the Company | 13,977,075.28 | Income from wealth management |
| Other non-operating income and expenditure except for the aforementioned items | 226,480.55 | |
| Less: Impact on minority shareholders’ equity (post-tax) | 2,573,349.88 | |
| Total | 20,973,885.19 | -- |
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, the Company has no such items in the reporting period for the aforesaid
Section III Management Discussion and AnalysisI. Main businesses of the Company in the reporting periodThe company is specialized in power and thermal supply, as well as providing technical consulting and technical services for powerstations. At the end of reporting period, the Company holds two wholly-owned and holding gas turbine plants, which equipped withfive sets of 9E gas steam combined cycle power generating units, with total installed capacity up to 900,000 KW (Nanshan PowerFactory: 3×180000KW, Zhongshan Nanlang Power Plant: 2×180000KW).The two gas turbine plants are located in the power-loadcenter of the Pearl River Delta, and it is the main peak-regulating power supply in the region which is currently in normal productionand operation state.
During the reporting period, the company's main power business faced many difficulties such as the recurring COVID-19 epidemic,the reduction of the benchmark electricity price on the grid, significant reduction in power metrics and the further increase of theelectricity market transaction electricity sold below the benchmark electricity price on the grid. In order to minimize the negativeimpact of the external environment on the company’s business performance, the company has implemented a series of businesslayout and management changes with innovative thinking and perseverance, clarified annual business objectives and policies, andadopted targeted major measures. On the basis of safety production management, we have continuously strengthened economicoperation management, and conformed to the trend of accelerating the process of power market reform in Guangdong Province. Weorganized two subordinate power plants to actively participate in the marketing competition and achieved good results, which createdfavorable conditions for achieving the goal of operating profitability. From January to June 2021, the company's two subordinatepower plants completed a total of 635 million kWh of actual on-grid energy, marketing electric quantity was 342 million kWh inmonths with difference in price, and contract electric quantity was 265 million kWh in spot months. The performance of eachsubordinate power plants of the company was as follows: Nanshan Power Factory completed the on-grid energy of 544 millionkWh, the marketing electric quantity in months with difference in price was 176 million kWh, and the contract electric quantity inspot months was 164 million kWh; Zhongshan Nanlang Power Plant completed on-grid energy of 91 million kWh, the marketingelectric quantity in months with difference in price was 166 million kWh, and the contract electric quantity in spot months was 101million kWh.
During the reporting period, the company not only strive to improve the operating efficiency of its main business of electric power,but also made great efforts to the operation and expansion of related businesses.The subordinate Shen Nan Dian EngineeringCompany continued to develop the technical consultation and technology service business for the construction of domestic andinternational gas turbine power stations. Shen Nan Dian Environmental Protection Company continued to engaged in the dryingtreatment of wet sludge in sewage treatment plants by utilizing the waste heat generated by gas turbines, which realized the reductionand harmless treatment of sludge and the comprehensive utilization of resources.
The Company shall comply with the disclosure requirements of Guidelines of Information Disclosure for Industry on ShenzhenStock Exchange No.15- Listed Companies are Engaged in Electricity-related BusinessII. Core Competitiveness AnalysisIn recent years, due to the impact of the macroeconomic situation and the common problems of gas turbine generating industry, theCompany’s main business has been facing increasing difficulties and challenges. However, the basic core competitiveness formed by
the operation and development for more than three decades and thanks to the strong support from major shareholders, and themanagement innovations adopted by new session of the Board and leading group, it has laid a necessary foundation for the Companyto survive and seeking transformation and development. During the reporting period, the company's core competitiveness has notundergone major changes, and all competitiveness elements have developed in a balanced manner. The company's overallcompetitiveness has been further consolidated and improved, and there have been no major changes that may affect the company'sfuture operations. (core competitiveness analysis found more in the Annual Report 2020)
III. Main business analysisFound more in”I. Main businesses of the Company in the reporting period”Y-o-y changes of main financial data
In RMB
| Current period | Same period of last year | Y-o-y increase/decrease | Reasons for changes | |
| Operating revenue | 376,602,393.38 | 518,150,606.21 | -27.32% | Compared with the same period last year, the operating revenue reduced due to the change of consolidate statement scope |
| Operating costs | 351,210,223.91 | 453,109,436.14 | -22.49% | Compared with the same period last year, the power generation cost reduced due to the change of consolidate statement scope |
| Sales expenses | 696,436.80 | 2,527,403.66 | -72.44% | Mainly due to the reduction in the amount of dry sludge disposal |
| Administrative expenses | 40,014,168.55 | 43,036,872.15 | -7.02% | |
| Finance expenses | 2,835,034.71 | 5,064,722.20 | -44.02% | The loan interest rates and loan scale declined |
| Income tax expenses | 610,366.52 | -100.00% | The taxable income decreased | |
| R&D investment | 3,360,629.60 | 0.00 | ---- | Mainly due to the R&D expenses for new technology from subsidiary |
| Net cash flow arising from operating activities | 68,920,712.99 | 69,936,561.46 | -1.45% | |
| Net cash flow arising | -442,542,660.44 | -70,404,614.02 | 528.57% | Expenses on wealth |
| from investment activities | management products increased | |||
| Net cash flow arising from financing activities | 60,903,494.60 | 313,780,839.64 | -80.59% | The bank loans declined |
| Net increase of cash and cash equivalent | -312,778,014.74 | 313,413,965.85 | -199.80% | The net cash flow arising from investment activities decreased |
Major changes on profit composition or profit resources in reporting period
□Applicable √Not applicable
No changes on profit composition or profit resources in reporting period
Constitution of operating revenue
In RMB
| Current period | Same period of last year | Y-o-y changes (+,-) | |||
| Amount | Ratio in operating revenue | Amount | Ratio in operating revenue | ||
| Total operating revenue | 376,602,393.38 | 100% | 518,150,606.21 | 100% | -27.32% |
| According to industries | |||||
| Energy industry | 356,995,223.97 | 94.79% | 470,093,812.79 | 90.73% | -24.06% |
| Engineering labor | 15,650,905.64 | 4.16% | 16,697,226.83 | 3.22% | -6.27% |
| Sludge drying | 3,388,263.75 | 0.90% | 29,975,302.78 | 5.79% | -88.70% |
| Other | 568,000.02 | 0.15% | 1,384,263.81 | 0.27% | -58.97% |
| According to products | |||||
| Electricity sales | 356,995,223.97 | 94.79% | 470,093,812.79 | 90.73% | -24.06% |
| Engineering labor | 15,650,905.64 | 4.16% | 16,697,226.83 | 3.22% | -6.27% |
| Sludge drying | 3,388,263.75 | 0.90% | 29,975,302.78 | 5.79% | -88.70% |
| Other | 568,000.02 | 0.15% | 1,384,263.81 | 0.27% | -58.97% |
| According to region | |||||
| Shenzhen | 306,547,992.61 | 81.40% | 227,995,512.76 | 44.00% | 34.45% |
| Zhongshan | 70,054,400.77 | 18.60% | 85,765,596.92 | 16.55% | -18.32% |
| Dongguan | 204,389,496.53 | 39.45% | -100.00% | ||
The industries, products, or regions accounting for over 10% of the Company’s operating revenue or operating profit
√Applicable □ Not applicable
In RMB
| Operating | Operating costs | Gross profit ratio | Increase/decrease | Increase/decrease | Increase/decrease |
| revenue | of operating revenue y-o-y | of operating cost y-o-y | of gross profit ratio y-o-y | |||
| According to industries | ||||||
| Energy industry | 356,995,223.97 | 334,320,000.49 | 6.35% | -24.06% | -19.77% | -5.00% |
| Engineering labor | 15,650,905.64 | 9,122,669.52 | 41.71% | -6.27% | -33.96% | 24.45% |
| Sludge drying | 3,388,263.75 | 7,649,745.60 | -125.77% | -88.70% | -65.97% | -150.78% |
| According to products | ||||||
| Electricity sales | 356,995,223.97 | 334,320,000.49 | 6.35% | -24.06% | -19.77% | -5.00% |
| Engineering labor | 15,650,905.64 | 9,122,669.52 | 41.71% | -6.27% | -33.96% | 24.45% |
| Sludge drying | 3,388,263.75 | 7,649,745.60 | -125.77% | -88.70% | -65.97% | -150.78% |
| According to region | ||||||
| Shenzhen | 305,979,992.59 | 279,909,474.85 | 8.52% | 35.02% | 39.65% | -3.03% |
| Zhongshan | 70,054,400.77 | 71,182,940.76 | -1.61% | -18.32% | 33.60% | -39.49% |
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based onlatest one year’s scope of period-end
□ Applicable √ Not applicable
Reasons for y-o-y relevant data with over 30% changes
√Applicable □ Not applicable
Revenue from sludge drying drops 88.70% from a year earlier, mainly due to the decline in sludge treatment volume.Other revenue has 58.97% down on a y-o-y basis, mainly due to the decrease of technical service revenue.
IV. Analysis of the non-main business
√Applicable □ Not applicable
In RMB
| Amount | Ratio in total profit | Note | Whether be sustainable (Y/N) | |
| Investment income | 12,828,359.95 | -1,684.41% | The income from wealth management | N |
| Non-operating income | 5,261,868.55 | -690.90% | Reversal of the accrual liability | N |
| Non-operating expenditure | 35,388.00 | -4.65% | Loss on retirement of the fixed assets | N |
V. Assets and liability
1. Major changes of assets composition
In RMB
| End of the current Period | End of last year | Ratio changes (+,-) | Notes of major changes | |||
| Amount | Ratio in total assets | Amount | Ratio in total assets | |||
| Monetary fund | 451,823,257.47 | 14.09% | 764,601,272.21 | 25.31% | -11.22% | Purchasing more wealth products |
| Account receivable | 96,253,747.38 | 3.00% | 85,293,052.88 | 2.82% | 0.18% | |
| Contractual assets | 0.00% | 7,229,600.00 | 0.24% | -0.24% | ||
| Inventory | 101,208,069.27 | 3.16% | 100,245,529.06 | 3.32% | -0.16% | |
| Investment real estate | 2,107,120.60 | 0.07% | 2,205,189.40 | 0.07% | 0.00% | |
| Long-term equity investment | 7,744,693.53 | 0.24% | 8,893,408.86 | 0.29% | -0.05% | |
| Fixed assets | 903,855,214.06 | 28.19% | 925,745,208.55 | 30.65% | -2.46% | Depreciation of fixed assets accrual in the Period |
| Construction in process | 85,544,475.11 | 2.67% | 42,782,712.98 | 1.42% | 1.25% | New technology transformation projects |
| Short-term loans | 458,822,740.80 | 14.31% | 675,528,858.48 | 22.36% | -8.05% | Repayment of the short-term bank loans |
| Other current assets | 1,222,940,412.14 | 38.14% | 917,288,244.54 | 30.37% | 7.77% | Purchasing more wealth management products |
| Other equity instrument investment | 200,615,000.00 | 6.26% | 81,615,000.00 | 2.70% | 3.56% | Foreign investment from Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) increased |
| Long-term expenses to be apportioned | 1,711,000.41 | 0.05% | 1,027,508.94 | 0.03% | 0.02% | |
| Note payable | 469,635,315.93 | 14.65% | 30,467,345.48 | 1.01% | 13.64% | The bank acceptance payable and trade acceptance payable increased |
2.Main foreign assets
□ Applicable √ Not applicable
3. Assets and liability measured by fair value
√Applicable □Not applicable
In RMB
| Item | Opening amount | Gain/loss of fair value changes in the Period | Cumulative change of fair value recorded into equity | Impairment accrual in the Period | Amount purchased in the Period | Amount sold in the Period | Other changes | Ending amount |
| Financial assets | ||||||||
| Other equity instrument investment | 81,615,000.00 | 119,000,000.00 | 200,615,000.00 | |||||
| Total above | 81,615,000.00 | 119,000,000.00 | 200,615,000.00 | |||||
| Financial liability | 0.00 | 0.00 | ||||||
Other changesWhether there is a significant changes in the measurement attributes of the main assets during the period
□Yes √No
4. Assets right restriction till end of reporting period
N/A
VI. Investment analysis
1. Overall situation
√ Applicable □Not applicable
| Investment amount in the Period (RMB) | Investment amount at same period last year (RMB) | Changes (+,-) |
| 118,957,517.00 | 0.00 | ---- |
2. The major equity investment obtained in the reporting period
√ Applicable □Not applicable
In RMB
| Invested compan | Main business | Form of invest | Investment amount | Shareholding ratio | Capital sourc | Partner | Time horizon | Type | Progress as of the balance | Anticipated income | Investment gains/lo | With lawsuit | Disclosure date (if any) | Disclosure index (if any) |
| y | ment | e | sheet date | sses in the Period | involved (Y/N) | |||||||||
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | Equity investment, venture capital | Newly established | 118,957,517.00 | 99.96% | Own fund | China Science and Tech Innovation Venture Capital Management | 5-year | Limited partnership | 140,229,917.00 Yuan has invested | 9,308.53 | N | 2020-10-23 | Notice on the Investment for Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) ; Notice No.: 2020-051 released on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website | |
| Total | -- | -- | 118,957,517.00 | -- | -- | -- | -- | -- | -- | -- | 9,308.53 | -- | -- | -- |
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company had no derivatives investment in the reporting period.
VII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
VIII. Analysis of main Holding Company and stock-jointly companies
√Applicable □Not applicable
Particular about main subsidiaries and stock-jointly companies with an impact of 10% or more on the Company’s net profit
In RMB
| Name | Type | Main business | Register capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Shenzhen New Power Industrial Co., Ltd. | Subsidiary | Technology development regarding to application of remaining heat (excluding restricted items) and power generation with remaining heat. Add: power generation through burning machines. | RMB 113.85 million | 197,567,783.71 | 159,696,173.50 | 137,786,947.04 | 672,954.78 | 672,954.78 |
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | Subsidiary | Sludge drying; the design and operations management of sludge treatment and disposal facilities and engineering; the technology development, technology transfer, technical advice, technical services of environmental pollution control and comprehensive utilization domain; (Except for the projects required to be approved before registration by laws, administrative regulations, | RMB 79 million | 132,710,496.59 | 115,034,037.59 | 3,412,263.75 | -7,117,609.49 | -7,117,609.49 |
| or decisions and stipulation of the State Council, the restricted items must be approved before operating) | ||||||||
| Shenzhen Shennandian Turbine Engineering Technology Co., Ltd. | Subsidiary | Engage in the technical advisory service for the construction projects of gas-steam combined cycle power plant (station), and undertake the maintenance and overhaul of the operation equipment of gas-steam combined cycle power plant (station). Import and export of goods and technologies (excluding distribution and state monopoly commodities) | RMB 10 million | 50,769,529.05 | 37,425,432.39 | 15,650,905.64 | -33,011.56 | -58,399.56 |
| Shenzhen Server Petrochemical Supplying Co., Ltd | Subsidiary | Self-supporting or import agent business of fuel oil; trade (excluding production and storage and transportation) in diesel, lubricating oil, liquefied petroleum gas, natural gas, compressed gas and liquefied gas, chemical products (excluding dangerous chemicals); investment, construction and technical supports in liquefied petroleum gas, natural gas and related facilities; import and export businesses and domestic trade of goods and technologies (excluding franchise, exclusive control, and monopoly products); leasing business. Licensed | RMB 53.3 million | 111,095,593.07 | 93,943,291.33 | 544,000.02 | -2,133,761.79 | 2,866,238.21 |
| projects: fuel oil warehousing business (except for refined oil); general freight transport, special transportation of goods (containers), special transportation of goods (tank) | ||||||||
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | Subsidiary | Gas turbine power generation, waste heat power generation, power supply and heating(heating pipe network excluded), leasing of wharf, oil depots and power equipment felicities (excluding refined oil, dangerous chemicals, or flammable and explosive goods); leasing of land-use right; non-residential real estate leasing | RMB 746.8 million | 525,057,677.20 | -76,902,978.26 | 70,054,400.77 | -18,506,781.68 | -18,254,913.13 |
| Shen Nan Energy (Singapore) Co., Ltd. | Subsidiary | Agent for oils trade and spare parts of gas turbine | US $ 0.9 million | 139,143,335.51 | 136,623,838.96 | 959,675.20 | 959,675.20 | |
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | Subsidiary | Equity investment, venture capital | RMB 21.358 million | 140,290,796.86 | 140,289,731.86 | 9,308.53 | 9,308.53 |
Subsidiary disposes and acquired in the period
□ Applicable √Not applicable
Statement of main holding company and stock-jointly companies
IX. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
X. Risks and countermeasures
1. In terms of main business, in 2021, the market share of the company's two subordinate power plants continued to decline, and thequantity of electricity index significantly reduced. In addition, since August 1, 2020, the on-grid electricity price of gas and powerunits in the province has been lowered again by 0.035 yuan/kWh, while the price of natural gas has been running at a high level andrising continuously since the beginning of the year, resulting in a significant increase in the fuel cost of the company's 9E gas unitand a more severe operating situation of the company's main power generation business. On the one hand, the company continued tocommunicate with relevant provincial and municipal government departments to reflect the difficulties of the company and seekgovernment support, on the other hand, the company continued to strengthen the operation and management of the stock assets,adhered to the working principles and ideas of the organic combination of "generating electricity economically by units" and"increasing income from electricity marketing", and tried our best to improve the profitability of the main business of powerproduction and the overall operating efficiency of the company. At the same time, the company will actively explore diversifiedbusiness models and transformation and development opportunities to create better conditions for the company's sustainableoperation and healthy development.
2.In terms of security management, on the one hand, under the power generation new model of constantly deepening marketization,more flexible scheduling mode, and stricter non-stop assessment, and in the face of ageing generating equipment and increasinglyheavy operation and maintenance work, the company actively organized subordinate two power plants to formulate scientific andreasonable equipment maintenance and technical modification plan, invested a lot of money and technical force, made efforts toenhance the maintenance and management level of units, ensured the safe and stable operation of production facilities, and continuedto play the supporting role of the main peaking power supply points. On the other hand, with the promulgation and implementation ofthe new "Safety Production Law of the People's Republic of China", the state, provinces and municipalities, and industries putforward more stringent and fine regulatory requirements, the company continued to implement the safety production subjectresponsibility and safety production responsibility system of all staff, further strengthened various aspects of production safety,pandemic prevention and control, network information security, and emergency disposal, ensured no safety accidents in the companysystem, and continued to create a new situation in safe production work.
3.In terms of fuel procurement, in the first half of 2021, due to the high economic growth rate in the Pearl River Delta region,regional high temperature, reduction of West-East electricity transmission and other factors, the power demand increasedsubstantially and the natural gas supply was tight. The company's natural gas purchase price increased significantly compared withthe same period in 2020, and the natural gas price in the second half of the year is expected to be at the higher level in recent years.Since the natural gas procurement contract must be signed in advance, the contract gas has been basically determined when signing,due to the characteristics of the electric power market, it is difficult to match the planned electricity generation with the actualelectricity generation, and the planned purchase quantity of natural gas is difficult to match the actual pickup quantity. If the naturalgas cannot be picked up according to the contract due to the influence of electricity transaction marketization and other factors in thelater period, which may cause related risks of insufficient pickup of contractual gas quantity and fluctuations in prices of increasedgas. The company will continue to optimize the upstream and downstream cooperation, give full play to the advantages of large-scaleprocurement and the regulating function of multiple gas sources, and try its best to reduce the cost of natural gas procurement whileensuring the gas demand for power production.
4. In terms of lands of Nanshan Power Factory, during the reporting period, the company actively used every opportunity to express
its own demands and suggestions, but by the end of the reporting period, there was still little effect. The company will keep closecommunication and contact with the relevant functional departments of Shenzhen and Qianhai Authority, actively follow up theimplementation of the government-related planning progress, and seriously study the land related situation of Nanshan PowerFactory with legal advisers, formulate coping strategies and work plans so as to ensure the legitimate rights and interests of the listedcompany and all shareholders.
Section IV. Corporate GovernanceI. In the report period, the Company held annual shareholders’ general meeting andextraordinary shareholders’ general meeting
1. Shareholders’ General Meeting in the report period
| Session of meeting | Type | Ratio of investor participation | Opening date | Date of disclosure | Resolution |
| First extraordinary shareholders’ general meeting in 2021 | Extraordinary shareholders’ general meeting | 39.27% | 2021-02-19 | 2021-02-20 | “Resolution Notice of First extraordinary shareholders’ general meeting in 2021” No.:2021-005, released on “China Securities Journal” “Securities Times” “Hong Kong Commercial Daily” and Juchao Website |
| Annual General Meeting (AGM) of 2020 | AGM | 39.20% | 2021-04-16 | 2021-04-17 | “Resolution Notice of Annual General Meeting 2020” No.:2021-027, released on “China Securities Journal” “Securities Times” “Hong Kong Commercial Daily” and Juchao Website |
| Second extraordinary shareholders’ general meeting in 2021 | Extraordinary shareholders’ general meeting | 39.19% | 2021-04-26 | 2021-04-27 | “Resolution Notice of Second extraordinary shareholders’ general meeting in 2021” No.:2021-033, released on “China Securities Journal” “Securities Times” “Hong Kong Commercial Daily” and Juchao Website |
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
II. Change of the Directors, Supervisors and Senior Executive
√Applicable □Not applicable
| Name | Title | Type | Date | Causes |
| Huang Bangxin | Vice president | Be elected | 2021-04-26 | |
| Sun Huirong | Director | Be elected | 2021-04-26 | |
| Li Caijun | Non-employee representative supervisors | Be elected | 2021-04-26 | |
| Qian Wenhui | Employee representative supervisors | Be elected | 2021-04-26 | |
| Lu Yingdi | Employee representative supervisors | Be elected | 2021-04-26 | |
| Zou Yi | Secretary of the Board | Appointments | 2021-04-26 | |
| Li Hongsheng | Vice president | Leaving at the end of the office term | 2021-04-26 | |
| Li Wenying | Director | Leaving at the end of the office term | 2021-04-26 | |
| Li Zhiwei | Non-employee representative supervisors | Leaving at the end of the office term | 2021-04-26 | |
| Liang Jianqiang | Employee representative supervisors | Leaving at the end of the office term | 2021-04-26 | |
| Peng Bo | Employee representative supervisors | Leaving at the end of the office term | 2021-04-26 | |
| Zhang Jie | Secretary of the Board | Leaving at the end of the office term | 2021-04-26 | |
| Dai Xiji | CFO | Dismissal | 2021-03-29 | Voluntary resignation |
III. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either forthe semi-annual year.
IV. Implementation of the equity incentive plan, employee stock ownership plan or otheremployee incentives
□ Applicable √ Not applicable
The Company has no implementation of the equity incentive plan, employee stock ownership plan or other employee incentives inthe Period.
Section V. Environmental and Social ResponsibilityI. Major environmental protection
The listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department
√Yes □No
| Enterprise or subsidiary | Main pollutant and features | Way of discharge | Number of discharge outlet | Distribution of the discharge outlet | Emission concentration | Pollutant discharge standard implemented | Total discharge | Total approved emissions | Excessive emission |
| Shenzhen Nanshan Power Co., Ltd. | Oxynitride | Concentrate emission from boiler uptake | 2 | In plant area of Nanshan Power Factory | <15 mg/ m? | Implementation of “Shenzhen Blue” emission standard<15 mg/ m? | 31.92 ton | 457.5 ton | 0 |
| Shenzhen New Power Industrial Co., Ltd. | Oxynitride | Concentrate emission from boiler uptake | 1 | In plant area of Nanshan Power Factory | <15 mg/ m? | Implementation of “Shenzhen Blue” emission standard<15 mg/ m? | 17.76 ton | 228.75 ton | 0 |
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | Oxynitride | Concentrate emission from boiler uptake | 2 | In plant area of Zhongshan Nanlang Power Plant | <25 mg/ m? | Emission standards for air pollutants from thermal power plants GB13223-2011 | 4.97 ton | 324.50 ton | 0 |
Construction and operation of the pollution controlling instrumentsAll pollution prevention and control facilities are operating normally, and all pollutant discharges are stable and up to standard.Shenzhen Nanshan Power Co., Ltd and the gas units under Shenzhen New Power Industrial Co., Ltd are strictly control the pollutantemissions in line with the relevant requirement of “The Sustainability Action Plan of “Shenzhen Blue” for 2018”(Shen Fu Ban Gui(2018) No.6).
Environmental impact assessment of construction projects and other environmental protection administrative licensesAll the above three legal entities have passed the environmental impact assessment and have been filed in Guangdong EnvironmentalProtection Department.
Emergency plan for sudden environmental incident:
The emergency plan for sudden environmental incidents has been filed in Guangdong Environmental Protection Department and thecorresponding Municipal Environmental Protection Bureau.
Environmental self-monitoring programThe environmental self-monitoring program has been prepared and reviewed by the environmental protection department; theinformation on the monitoring data is disclosed on the website of the environmental protection department on time.
Administrative penalties imposed for environmental issues during the reporting periodN/A
Other environmental information that should be disclosedN/A
Relevant other informationN/AThe Company shall comply with the disclosure requirements of Guidelines of Information Disclosure for Industry on ShenzhenStock Exchange No.15- Listed Companies are Engaged in Electricity-related BusinessII. Social responsibilityThe Company has not carried out targeted poverty alleviation work during the reporting period.
Section VI. Important Event
I. Commitments that the actual controller, shareholders, related parties, acquirer and the Company havefulfilled during the reporting period and have not yet fulfilled by the end of reporting period
□Applicable √Not applicable
There was no commitments that the actual controller, shareholders, related parties, acquirer and the Company have fulfilled duringthe reporting period and have not yet fulfilled by the end of the reporting periodII. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.III. External guarantee out of the regulations
□ Applicable √ Not applicable
No external guarantee out of the regulations occurred in the period.IV. Appointment and non-reappointment (dismissal) of CPAWhether the financial report of semi-annual report has been audited
□Yes √No
The semi-annual report of the Company is unaudited.
V. Explanation from Board of Directors and Supervisory Committee for “Non-standard auditreport” that issued by CPA
□ Applicable √ Not applicable
VI. Explanation from the BOD on the previous year’s “non-standard audit report”
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period.VIII. LitigationMajor litigation and arbitration
□ Applicable √ Not applicable
No major litigation and arbitration occurred in the Period.
Other litigation
□ Applicable √ Not applicable
IX. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.X. Integrity of the Company and its controlling shareholders and actual controllers
√ Applicable □ Not applicable
During the reporting period, the company neither had any failure to implement the court’s effective judgments, nor had large amountof due and unpaid debts that were, etc., and had a good credit. During the reporting period, the company had no controllingshareholders or actual controllers.XI. Major related party transaction
1. Related party transaction with routine operation concerned
□ Applicable √ Not applicable
The Company has no related party transaction with routine operation concerned occurred during the reporting period.
2. Related party transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related party transactions by assets acquisition and sold for the Company in Period.
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in Period.
4. Contact of related credit and debt
□ Applicable √ Not applicable
No contact of related credit and debt occurred in the Period
5. Contact with the related finance companies and finance companies that controlled by the Company
□ Applicable √ Not applicable
There are no deposits, loans, credits or other financial business between the Company and the finance companies with related
relationships or between the finance companies controlled by the Company and related parties
6. Other material related party transactions
□ Applicable √ Not applicable
The company had no other material related party transactions in reporting period.
XII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
√Applicable □Not applicable
Note of trusteeshipIn line with the Genset Asset Trusteeship Contract of Shenzhen New Power Industrial Co., Ltd. signed with New Power Company,the Company was entrusted to operate and manage the power generation machine unit owned by its wholly-owned subsidiary NewPower Company. The custody business service charge 4.115 million yuan was obtained by the Company in reporting period.
Gains/losses to the Company from projects that reached over 10% in total profit of the Company in reporting period
□ Applicable √ Not applicable
No gains or losses to the Company from projects that reached over 10% in total profit of the Company in reporting period.
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in Period.
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in Period.
2. Major guarantees
□ Applicable √ Not applicable
No major guarantees for the Company in Period.
3. Trust financing
√Applicable □Not applicable
In 10 thousand Yuan
| Type | Capital sources | Amount occurred | Outstanding balance | Overdue amount | Amount with |
| impairment accrual for the overdue financial products which has not been recovered | |||||
| Bank financial products | Own fund | 31,635.18 | 89,200.74 | 0 | 0 |
| Total | 31,635.18 | 89,200.74 | 0 | 0 | |
Details of the single major amount, or high-risk trust investment with low security, poor fluidity and non-guaranteed
□Applicable √Not applicable
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
4.Material contracts for routine operations
□ Applicable √ Not applicable
5. Other material contracts
√Applicable □Not applicable
| The name of the contracting Company | The name of the contracted Company | contract object | The date of signature of the contract | The book value of the assets involved in the contract (in 10 thousand yuan) (if applicable) | The assessed value of the assets involved in the contract (in 10 thousand yuan) (if applicable) | Name of the evaluation organization (if applicable) | The base date evaluation (if applicable) | Pricing principles | Bargain price (in 10 thousand yuan) | Whether connected transaction (Y/N) | Incidence relation | The performance by the end of the term | The date of disclosure | Index |
| The Company, New Power Company | Shenzhen Gas Group Co., Ltd. | Pipeline gas | 2018-05-14 | N/A | It was a framework agreement, the price of NG will | N | Not applicable | In progress | Failure to meet the special disclosure conditions |
XIII. Other major events
√Applicable □ Not applicable
Investment matters related to the Zhongshan Prefabricated Building Industrial Park project. The “Notice on Termination ofInvestment in the Zhongshan Prefabricated Building Industrial Park Project” was released by the Company dated 27 May 2021. OnMay 26, 2021, the company received a letter from Shenzhen SEZ Construction Group Co., Ltd., it stated that it had commissioned athird-party intermediary to conduct a feasibility study on the project, and considered that the project should not be approved based onthe principle of prudence. Considering all aspects of factors, the company decided to terminate the investment in Zhongshanprefabricated building industrialized park project. (Found more in the Notice released on China Securities Journal, Securities Times,Hong Kong Commercial Daily and Juchao Website, including the Notice on Termination of Investment in the ZhongshanPrefabricated Building Industrial Park Project (Notice No.: 2021-036))
During the reporting period, the company actively promoted the investments of Yuanzhi Ruixin new generation of informationtechnology equity investment funds and Zhuhai Hengqin Zhuoji investment partnership (limited partnership) and other relatedmatters, followed up T102-0011, T102-0155 land related matters, and sorted out the refundable payments of the "project technicalinnovation benefit fund" and contacted and communicated with relevant personnel again. In addition to the above matters, theXinjiang Aid Project of Guangdong in which the company participated in 2013 had no progress or changes during the reportingperiod.
XIV. Significant event of subsidiary of the Company
□ Applicable √Not applicable
Section VII. Changes in Shares and Particulars about ShareholdersI. Changes in Share Capital
1. Changes in Share Capital
Unit: share
| Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
| Amount | Proportion | New shares issued | Bonus shares | Public reserve transfer into share capital | Others | Subtotal | Amount | Proportion | |
| I. Restricted shares | 14,139 | 0.0023% | 382 | 382 | 14,521 | 0.0024% | |||
| 1. State-owned shares | |||||||||
| 2. State-owned legal person’s shares | |||||||||
| 3. Other domestic shares | 14,139 | 0.0023% | 382 | 382 | 14,521 | 0.0024% | |||
| Including: Domestic legal person’s shares | |||||||||
| Domestic natural person’s shares | 14,139 | 0.0023% | 382 | 382 | 14,521 | 0.0024% | |||
| 4. Foreign shares | |||||||||
| Including: Foreign legal person’s shares | |||||||||
| Foreign natural person’s shares | |||||||||
| II. Unrestricted shares | 602,748,457 | 99.9977% | -382 | -382 | 602,748,075 | 99.9976% | |||
| 1. RMB ordinary shares | 338,894,011 | 56.2235% | -382 | -382 | 338,893,629 | 56.2234% | |||
| 2. Domestically listed foreign shares | 263,854,446 | 43.7742% | 263,854,446 | 43.7742% | |||||
| 3. Overseas listed foreign shares | |||||||||
| 4. Others | |||||||||
| III. Total shares | 602,762,596 | 100.00% | 602,762,596 | 100.00% | |||||
Reasons for share changed
√Applicable □Not applicable
During the reporting period, the Company conducts general elections, Mr. Peng Bo ceased to be the employee representativesupervisor of the Company, the Shen Nan Dian A shares, 1,527 shares in total held by Mr. Peng Bo are restricted with 6 months of hisdeparture, thus the number of restricted shares has 382 shares increased.Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changed
□ Applicable √ Not applicable
Progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of lock-up stocks
√Applicable □ Not applicable
Unit: share
| Name of shareholder | Number of restricted shares at the beginning of the period | Number of restricted shares released in the current period | Increase in the number of restricted shares in the current period | Number of restricted shares at the end of the period | Reasons for sales restriction | Release date |
| Peng Bo | 1,145 | 382 | 1,527 | During the reporting period, the Company conducts general elections, Mr. Peng Bo ceased to be the employee representative supervisor of the Company, the Shen Nan Dian A shares, 1,527 shares in total held by Mr. Peng | 2021-10-26 |
| Bo are restricted with 6 months of his departure, thus the number of restricted shares has 382 shares increased. | ||||||
| total | 1,145 | 382 | 1,527 | -- | -- |
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
Unit: share
| Total common stock shareholders in reporting period-end | 40,917 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) (see note 8) | 0 | ||||||||
| Particulars about common shares held above 5% by shareholders or top ten common shareholders | |||||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Amount of common shares held at the end of reporting period | Changes in report period | Amount of restricted common shares held | Amount of common shares held without restriction | Information of shares pledged, tagged or frozen | ||||
| State of share | Amount | ||||||||||
| HONG KONG NAM HOI (INTERNATIONAL) LTD. | Overseas legal person | 15.28% | 92,123,248 | 0 | 92,123,248 | ||||||
| Shenzhen Guangju Industrial Co., Ltd. | State-owned legal person | 12.22% | 73,666,824 | 0 | 73,666,824 | ||||||
| Shenzhen Energy Group Co., Ltd. | State-owned legal person | 10.80% | 65,106,130 | 0 | 65,106,130 | ||||||
| BOCI SECURITIES LIMITED | Overseas legal person | 2.49% | 14,991,882 | Increased holdings of 16,380 shares | 14,991,882 | ||||||
| Zeng Ying | Domestic nature person | 1.19% | 7,159,600 | 7,159,600 | |||||||
| China Merchants Securities H.K. Co., Ltd. | State-owned legal person | 1.02% | 6,133,328 | Decreased holdings of 946,400 shares | 6,133,328 | ||||||
| LI SHERYN ZHAN MING | Overseas nature person | 0.97% | 5,833,690 | Increased holdings of 8,200 shares | 5,833,690 | ||||||
| Meiyi Investment Property Co., Ltd. | Domestic non state legal person | 0.87% | 5,218,000 | Increase holdings of 200 shares | 5,218,000 | ||||||
| Haitong International Securities Company Limited-Account Client | Overseas legal person | 0.65% | 3,909,357 | 3,909,357 | |||||||
| Guosen Securities (Hong Kong) Brokerage Co., Ltd. | Overseas legal person | 0.61% | 3,651,901 | 3,651,901 | |||||||
| Strategy investor or general legal person becoming the top 10 common shareholders by placing new shares (if applicable) (see note 3) | Not applicable | ||||||||||
| Explanation on associated relationship among the aforesaid shareholders | 1. 100% equity of HONG KONG NAM HOI (INTERNATIONAL) LIMITED 100% 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. | ||||||||||
| Description of the above shareholders in relation to delegate/entrusted voting rights and abstention from voting rights. | Not applicable | ||||||||||
| Special note on the repurchase account among the top 10 shareholders (if applicable) (see note 11) | Not applicable | ||||||||||
| Particular about top ten shareholders with un-lock up common stocks held | |||||||||||
| Shareholders’ name | Amount of common shares held without restriction at Period-end | Type of shares | |||||||||
| Type | Amount | ||||||||||
| HONG KONG NAM HOI | 92,123,248 | Domestically | 92,123,248 | ||||||||
| (INTERNATIONAL) LTD. | listed foreign shares | ||
| Shenzhen Guangju Industrial Co., Ltd. | 73,666,824 | RMB common shares | 73,666,824 |
| Shenzhen Energy Group Co., Ltd. | 65,106,130 | RMB common shares | 65,106,130 |
| BOCI SECURITIES LIMITED | 14,991,882 | Domestically listed foreign shares | 14,991,882 |
| Zeng Ying | 7,159,600 | Domestically listed foreign shares | 7,159,600 |
| China Merchants Securities H.K. Co., Ltd. | 6,133,328 | Domestically listed foreign shares | 6,133,328 |
| LI SHERYN ZHAN MING | 5,833,690 | Domestically listed foreign shares | 5,833,690 |
| Meiyi Investment Property Co., Ltd. | 5,218,000 | RMB common shares | 5,218,000 |
| Haitong International Securities Company Limited-Account Client | 3,909,357 | Domestically listed foreign shares | 3,909,357 |
| Guosen Securities (Hong Kong) Brokerage Co., Ltd. | 3,651,901 | Domestically listed foreign shares | 3,651,901 |
| Expiation on associated relationship or consistent actors within the top 10 un-lock up common shareholders and between top 10 un-lock up common shareholders and top 10 common shareholders | 1. 100% equity of HONG KONG NAM HOI (INTERNATIONAL) LIMITED 100% 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. | ||
| Explanation on top 10 common shareholders involving margin business (if applicable) (see note 4) | Not applicable | ||
Whether top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held have a buy-backagreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held of the Company have nobuy-back agreement dealing in reporting period.
IV. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
Shares held by directors, supervisors and senior officers have no changes in reporting period, found more details in Annual Report2020.
V. Changes in controlling shareholders or actual controllersChange of controlling shareholder during the reporting period
□ Applicable √ Not applicable
The Company had no change of controlling shareholder during the reporting periodChange of actual controller during the reporting period
□ Applicable √ Not applicable
The Company had no change of actual controller during the reporting period
Section VIII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
Section IX. Corporate Bonds
□ Applicable √ Not applicable
The Company had no convertible bonds in the Period
Section X. Financial ReportI. Audit report
Whether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been auditedII. Financial Statement
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated Balance Sheet
Prepared by Shenzhen Nanshan Power Co., Ltd.
June 30, 2021
In RMB
| Item | June 30, 2021 | December 31, 2020 |
| Current assets: | ||
| Monetary funds | 451,823,257.47 | 764,601,272.21 |
| Settlement provisions | ||
| Capital lent | ||
| Trading financial assets | ||
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | 96,253,747.38 | 85,293,052.88 |
| Receivable financing | ||
| Accounts paid in advance | 79,010,325.13 | 29,544,788.35 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 30,330,188.34 | 31,027,754.36 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Buying back the sale of financial |
| assets | ||
| Inventories | 101,208,069.27 | 100,245,529.06 |
| Contractual assets | 7,229,600.00 | |
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 1,222,940,412.14 | 917,288,244.54 |
| Total current assets | 1,981,565,999.73 | 1,935,230,241.40 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 7,744,693.53 | 8,893,408.86 |
| Investment in other equity instrument | 200,615,000.00 | 81,615,000.00 |
| Other non-current financial assets | ||
| Investment real estate | 2,107,120.60 | 2,205,189.40 |
| Fixed assets | 903,855,214.06 | 925,745,208.55 |
| Construction in progress | 85,544,475.11 | 42,782,712.98 |
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | ||
| Intangible assets | 20,809,189.41 | 21,125,610.24 |
| Expense on Research and Development | ||
| Goodwill | ||
| Long-term expenses to be apportioned | 1,711,000.41 | 1,027,508.94 |
| Deferred income tax asset | 2,206,049.69 | 2,206,049.69 |
| Other non-current asset | ||
| Total non-current asset | 1,224,592,742.81 | 1,085,600,688.66 |
| Total assets | 3,206,158,742.54 | 3,020,830,930.06 |
| Current liabilities: | ||
| Short-term loans | 458,822,740.80 | 675,528,858.48 |
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | ||
| Derivative financial liability | ||
| Note payable | 469,635,315.93 | 30,467,345.48 |
| Account payable | 9,517,807.05 | 9,306,303.26 |
| Accounts received in advance | ||
| Contractual liability | ||
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 44,751,065.21 | 69,426,903.97 |
| Taxes payable | 8,379,393.57 | 7,626,258.26 |
| Other account payable | 22,860,672.23 | 27,020,944.95 |
| Including: Interest payable | 432,488.68 | |
| Dividend payable | ||
| Commission charge and commission payable | ||
| Reinsurance payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | ||
| Total current liabilities | 1,013,966,994.79 | 819,376,614.40 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability |
| Long-term account payable | ||
| Long-term wages payable | ||
| Accrual liability | 14,573,508.28 | 19,923,508.28 |
| Deferred income | 90,587,200.87 | 93,780,657.93 |
| Deferred income tax liabilities | ||
| Other non-current liabilities | 50,110.86 | 7,627.86 |
| Total non-current liabilities | 105,210,820.01 | 113,711,794.07 |
| Total liabilities | 1,119,177,814.80 | 933,088,408.47 |
| Owner’s equity: | ||
| Share capital | 602,762,596.00 | 602,762,596.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 362,770,922.10 | 362,770,922.10 |
| Less: Inventory shares | ||
| Other comprehensive income | -2,500,000.00 | -2,500,000.00 |
| Reasonable reserve | ||
| Surplus public reserve | 332,908,397.60 | 332,908,397.60 |
| Provision of general risk | ||
| Retained profit | 760,256,201.62 | 758,799,931.94 |
| Total owner’ s equity attributable to parent company | 2,056,198,117.32 | 2,054,741,847.64 |
| Minority interests | 30,782,810.42 | 33,000,673.95 |
| Total owner’ s equity | 2,086,980,927.74 | 2,087,742,521.59 |
| Total liabilities and owner’ s equity | 3,206,158,742.54 | 3,020,830,930.06 |
Legal Representative: Li XinweiPerson in charge of accounting works: Chen YuhuiPerson in charge of accounting institute: Shang Ying
2. Balance Sheet of Parent Company
In RMB
| Item | June 30, 2021 | December 31, 2020 |
| Current assets: | ||
| Monetary funds | 369,013,276.08 | 656,244,294.18 |
| Trading financial assets | ||
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | 48,374,534.89 | 24,673,115.32 |
| Receivable financing | ||
| Accounts paid in advance | 70,967,049.79 | 25,560,315.87 |
| Other account receivable | 595,045,866.53 | 598,044,417.89 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Inventories | 93,001,526.47 | 91,867,492.38 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | 1,216,227,322.16 | 910,645,154.56 |
| Total current assets | 2,392,629,575.92 | 2,307,034,790.20 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investments | 369,148,682.00 | 250,191,165.00 |
| Investment in other equity instrument | 60,615,000.00 | 60,615,000.00 |
| Other non-current financial assets | ||
| Investment real estate | ||
| Fixed assets | 305,876,867.25 | 312,649,354.95 |
| Construction in progress | 43,058,266.07 | 1,073,964.84 |
| Productive biological assets | ||
| Oil and natural gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 327,135.40 | 332,241.43 |
| Research and development costs | ||
| Goodwill |
| Long-term expenses to be apportioned | 1,462,963.50 | 734,374.41 |
| Deferred income tax assets | ||
| Other non-current assets | ||
| Total non-current assets | 780,488,914.22 | 625,596,100.63 |
| Total assets | 3,173,118,490.14 | 2,932,630,890.83 |
| Current liabilities: | ||
| short-term loans | 458,822,740.80 | 675,528,858.48 |
| Trading financial liability | ||
| Derivative financial liability | ||
| Notes payable | 469,635,315.93 | 30,467,345.48 |
| Account payable | 1,549,013.90 | 998,036.56 |
| Accounts received in advance | ||
| Contractual liability | ||
| Wage payable | 34,278,034.43 | 53,405,473.63 |
| Taxes payable | 1,000,237.46 | 1,752,749.94 |
| Other accounts payable | 224,058,510.94 | 204,960,979.45 |
| Including: Interest payable | 432,488.68 | |
| Dividend payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | ||
| Total current liabilities | 1,189,343,853.46 | 967,113,443.54 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | ||
| Long term employee compensation payable | ||
| Accrued liabilities |
| Deferred income | 53,082,581.40 | 54,805,440.92 |
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 53,082,581.40 | 54,805,440.92 |
| Total liabilities | 1,242,426,434.86 | 1,021,918,884.46 |
| Owners’ equity: | ||
| Share capital | 602,762,596.00 | 602,762,596.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 289,963,039.70 | 289,963,039.70 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Special reserve | ||
| Surplus reserve | 332,908,397.60 | 332,908,397.60 |
| Retained profit | 705,058,021.98 | 685,077,973.07 |
| Total owner’s equity | 1,930,692,055.28 | 1,910,712,006.37 |
| Total liabilities and owner’s equity | 3,173,118,490.14 | 2,932,630,890.83 |
3. Consolidated Profit Statement
In RMB
| Item | 2021 semi-annual | 2020 semi-annual |
| I. Total operating income | 376,602,393.38 | 518,150,606.21 |
| Including: Operating income | 376,602,393.38 | 518,150,606.21 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 399,762,506.97 | 508,157,542.84 |
| Including: Operating cost | 351,210,223.91 | 453,109,436.14 |
| Interest expense | ||
| Commission charge and commission expense | ||
| Cash surrender value |
| Net amount of expense of compensation | ||
| Net amount of withdrawal of insurance contract reserve | ||
| Bonus expense of guarantee slip | ||
| Reinsurance expense | ||
| Tax and extras | 1,646,013.40 | 4,419,108.69 |
| Sales expense | 696,436.80 | 2,527,403.66 |
| Administrative expense | 40,014,168.55 | 43,036,872.15 |
| R&D expense | 3,360,629.60 | |
| Financial expense | 2,835,034.71 | 5,064,722.20 |
| Including: Interest expenses | 13,028,372.76 | 18,187,759.13 |
| Interest income | 10,344,030.33 | 13,142,285.32 |
| Add: Other income | 3,368,979.50 | 8,755,536.55 |
| Investment income (Loss is listed with “-”) | 12,828,359.95 | 33,291,259.12 |
| Including: Investment income on affiliated company and joint venture | -1,148,715.33 | -243,622.43 |
| The termination of income recognition for financial assets measured by amortized cost | ||
| Exchange income (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Income from change of fair value (Loss is listed with “-”) | ||
| Loss of credit impairment (Loss is listed with “-”) | ||
| Losses of devaluation of asset (Loss is listed with “-”) | ||
| Income from assets disposal (Loss is listed with “-”) | 974,699.74 | 828,535.66 |
| III. Operating profit (Loss is listed with “-”) | -5,988,074.40 | 52,868,394.70 |
| Add: Non-operating income | 5,261,868.55 | 4,753.84 |
| Less: Non-operating expense | 35,388.00 | 11,110.00 |
| IV. Total profit (Loss is listed with “-”) | -761,593.85 | 52,862,038.54 |
| Less: Income tax expense | 610,366.52 | |
| V. Net profit (Net loss is listed with “-”) | -761,593.85 | 52,251,672.02 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with ‘-”) | ||
| 2.termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to owner’s of parent company | 1,456,269.68 | 52,040,498.42 |
| 2.Minority shareholders’ gains and losses | -2,217,863.53 | 211,173.60 |
| VI. Net after-tax of other comprehensive income | ||
| Net after-tax of other comprehensive income attributable to owners of parent company | ||
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss |
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | -761,593.85 | 52,251,672.02 |
| Total comprehensive income attributable to owners of parent Company | 1,456,269.68 | 52,040,498.42 |
| Total comprehensive income attributable to minority shareholders | -2,217,863.53 | 211,173.60 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.002 | 0.086 |
| (ii) Diluted earnings per share | 0.002 | 0.086 |
As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before combination while 0Yuan achieved last periodLegal Representative: Li XinweiPerson in charge of accounting works: Chen YuhuiPerson in charge of accounting institute: Shang Ying
4. Profit Statement of Parent Company
In RMB
| Item | Semi-annual of 2021 | Semi-annual of 2020 |
| I. Operating income | 184,931,162.25 | 145,767,015.34 |
| Less: Operating cost | 171,383,039.58 | 137,936,919.09 |
| Taxes and surcharge | 182,295.14 | 1,043,521.78 |
| Sales expenses | ||
| Administrative expenses | 18,205,121.93 | 20,573,683.41 |
| R&D expenses | ||
| Financial expenses | -8,003,413.78 | -15,583,586.02 |
| Including: Interest expenses | 13,876,981.75 | 14,007,579.30 |
| Interest income | 21,956,978.18 | 29,739,688.15 |
| Add: Other income | 1,894,186.55 | 6,061,054.97 |
| Investment income (Loss is listed with “-”) | 13,977,075.28 | -14,432,400.00 |
| Including: Investment income on affiliated Company and joint venture | ||
| The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Changing income of fair value (Loss is listed with “-”) | ||
| Loss of credit impairment (Loss is listed with “-”) | ||
| Losses of devaluation of asset (Loss is listed with “-”) | ||
| Income on disposal of assets (Loss is listed with “-”) | 944,667.70 | 828,535.66 |
| II. Operating profit (Loss is listed with “-”) | 19,980,048.91 | -5,746,332.29 |
| Add: Non-operating income | ||
| Less: Non-operating expense | 1,110.00 | |
| III. Total Profit (Loss is listed with “-”) | 19,980,048.91 | -5,747,442.29 |
| Less: Income tax | ||
| IV. Net profit (Net loss is listed with “-”) | 19,980,048.91 | -5,747,442.29 |
| (i) continuous operating net profit (net loss listed with ‘-”) |
| (ii) termination of net profit (net loss listed with ‘-”) | ||
| V. Net after-tax of other comprehensive income | ||
| (i) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| VI. Total comprehensive income | 19,980,048.91 | -5,747,442.29 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share |
| (ii) Diluted earnings per share |
5. Consolidated Cash Flow Statement
In RMB
| Item | Semi-annual of 2021 | Semi-annual of 2020 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 455,910,102.76 | 546,650,431.87 |
| Net increase of customer deposit and interbank deposit | ||
| Net increase of loan from central bank | ||
| Net increase of capital borrowed from other financial institution | ||
| Cash received from original insurance contract fee | ||
| Net cash received from reinsurance business | ||
| Net increase of insured savings and investment | ||
| Cash received from interest, commission charge and commission | ||
| Net increase of capital borrowed | ||
| Net increase of returned business capital | ||
| Net cash received by agents in sale and purchase of securities | ||
| Write-back of tax received | 188,709.78 | 825,437.15 |
| Other cash received concerning operating activities | 15,878,060.82 | 22,506,294.89 |
| Subtotal of cash inflow arising from operating activities | 471,976,873.36 | 569,982,163.91 |
| Cash paid for purchasing commodities and receiving labor service | 287,613,597.56 | 375,599,637.22 |
| Net increase of customer loans and |
| advances | ||
| Net increase of deposits in central bank and interbank | ||
| Cash paid for original insurance contract compensation | ||
| Net increase of capital lent | ||
| Cash paid for interest, commission charge and commission | ||
| Cash paid for bonus of guarantee slip | ||
| Cash paid to/for staff and workers | 79,004,549.15 | 75,085,663.24 |
| Taxes paid | 11,130,068.18 | 28,204,829.24 |
| Other cash paid concerning operating activities | 25,307,945.48 | 21,155,472.75 |
| Subtotal of cash outflow arising from operating activities | 403,056,160.37 | 500,045,602.45 |
| Net cash flows arising from operating activities | 68,920,712.99 | 69,936,561.46 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | ||
| Cash received from investment income | 13,595,677.64 | 254,147.93 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 1,812,386.50 | |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 5,000,000.00 | 800,000.00 |
| Subtotal of cash inflow from investing activities | 20,408,064.14 | 1,054,147.93 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 28,044,760.20 | 5,447,277.81 |
| Cash paid for investment | 434,905,964.38 | 53,434,321.12 |
| Net increase of mortgaged loans | ||
| Net cash received from |
| subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 12,577,163.02 | |
| Subtotal of cash outflow from investing activities | 462,950,724.58 | 71,458,761.95 |
| Net cash flows arising from investing activities | -442,542,660.44 | -70,404,614.02 |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | 42,483.00 | |
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | ||
| Cash received from loans | 514,022,740.80 | 844,233,285.00 |
| Other cash received concerning financing activities | 170,000,000.00 | |
| Subtotal of cash inflow from financing activities | 514,065,223.80 | 1,014,233,285.00 |
| Cash paid for settling debts | 438,233,285.00 | 670,000,000.00 |
| Cash paid for dividend and profit distributing or interest paying | 14,928,444.20 | 30,452,445.36 |
| Including: Dividend and profit of minority shareholder paid by subsidiaries | ||
| Other cash paid concerning financing activities | ||
| Subtotal of cash outflow from financing activities | 453,161,729.20 | 700,452,445.36 |
| Net cash flows arising from financing activities | 60,903,494.60 | 313,780,839.64 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -59,561.89 | 101,178.77 |
| V. Net increase of cash and cash equivalents | -312,778,014.74 | 313,413,965.85 |
| Add: Balance of cash and cash equivalents at the period -begin | 764,601,272.21 | 771,490,000.96 |
| VI. Balance of cash and cash | 451,823,257.47 | 1,084,903,966.81 |
6. Cash Flow Statement of Parent Company
In RMB
equivalents at the period -endItem
| Item | Semi-annual of 2021 | Semi-annual of 2020 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 339,874,588.88 | 175,122,223.90 |
| Write-back of tax received | 181,606.65 | 171,207.01 |
| Other cash received concerning operating activities | 81,393,879.95 | 255,646,269.06 |
| Subtotal of cash inflow arising from operating activities | 421,450,075.48 | 430,939,699.97 |
| Cash paid for purchasing commodities and receiving labor service | 115,934,173.38 | 117,118,694.51 |
| Cash paid to/for staff and workers | 56,654,760.87 | 47,301,346.15 |
| Taxes paid | 909,616.90 | 222,887.49 |
| Other cash paid concerning operating activities | 149,731,282.02 | 275,229,334.87 |
| Subtotal of cash outflow arising from operating activities | 323,229,833.17 | 439,872,263.02 |
| Net cash flows arising from operating activities | 98,220,242.31 | -8,932,563.05 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 59,990,000.00 | |
| Cash received from investment income | 13,595,677.64 | 254,147.93 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 1,756,774.50 | 0.00 |
| Net cash received from disposal of subsidiaries and other units | 0.00 | |
| Other cash received concerning | 230,318,617.98 |
| investing activities | ||
| Subtotal of cash inflow from investing activities | 15,352,452.14 | 290,562,765.91 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 26,800,456.86 | 1,915,256.43 |
| Cash paid for investment | 315,905,964.38 | 53,434,321.12 |
| Net cash received from subsidiaries and other units obtained | 118,957,517.00 | 0.00 |
| Other cash paid concerning investing activities | 0.00 | |
| Subtotal of cash outflow from investing activities | 461,663,938.24 | 55,349,577.55 |
| Net cash flows arising from investing activities | -446,311,486.10 | 235,213,188.36 |
| III. Cash flows arising from financing activities: | ||
| Cash received from absorbing investment | 0.00 | |
| Cash received from loans | 514,022,740.80 | 544,233,285.00 |
| Other cash received concerning financing activities | 5,000,000.00 | |
| Subtotal of cash inflow from financing activities | 514,022,740.80 | 549,233,285.00 |
| Cash paid for settling debts | 438,233,285.00 | 370,000,000.00 |
| Cash paid for dividend and profit distributing or interest paying | 14,928,444.20 | 25,373,959.23 |
| Other cash paid concerning financing activities | 600,600.00 | |
| Subtotal of cash outflow from financing activities | 453,161,729.20 | 395,974,559.23 |
| Net cash flows arising from financing activities | 60,861,011.60 | 153,258,725.77 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -785.91 | 848.67 |
| V. Net increase of cash and cash equivalents | -287,231,018.10 | 379,540,199.75 |
| Add: Balance of cash and cash | 656,244,294.18 | 632,948,706.11 |
| equivalents at the period -begin | ||
| VI. Balance of cash and cash equivalents at the period -end | 369,013,276.08 | 1,012,488,905.86 |
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Amount
In RMB
| Item | Semi-annual of 2021 | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. The ending balance of the previous year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 758,799,931.94 | 2,054,741,847.64 | 33,000,673.95 | 2,087,742,521.59 | |||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. The beginning balance of the current year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 758,799,931.94 | 2,054,741,847.64 | 33,000,673.95 | 2,087,742,521.59 | |||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 1,456,269.68 | 1,456,269.68 | -2,217,863.53 | -761,593.85 | |||||||||||
| (i) Total comprehensive income | 1,456,269.68 | 1,456,269.68 | -2,217,863.53 | -761,593.85 | |||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | |||||||||||||||
| (iii) Profit distribution | |||||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||||
| 4. Other | |||||||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share |
| capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (v) Reasonable reserve | |||||||||||||||
| 1. Withdrawal in the report period | |||||||||||||||
| 2. Usage in the report period | |||||||||||||||
| (vi) Others | |||||||||||||||
| VI. Balance at the end of the period | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 760,256,201.62 | 2,056,198,117.32 | 30,782,810.42 | 2,086,980,927.74 |
Amount of the previous period
In RMB
| Item | Semi-annual of 2020 | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred | Perpetual | Other | |||||||||||||
| stock | capital securities | income | |||||||||||||
| I. The ending balance of the previous year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 706,830,892.54 | 2,002,772,808.24 | 59,719,513.26 | 2,062,492,321.50 | |||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. The beginning balance of the current year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 706,830,892.54 | 2,002,772,808.24 | 59,719,513.26 | 2,062,492,321.50 | |||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 39,985,246.50 | 39,985,246.50 | -30,408,162.88 | 9,577,083.62 | |||||||||||
| (i) Total comprehensive income | 52,040,498.42 | 52,040,498.42 | 211,173.60 | 52,251,672.02 | |||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity |
| instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | |||||||||||||||
| (iii) Profit distribution | -12,055,251.92 | -12,055,251.92 | -12,055,251.92 | ||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | -12,055,251.92 | -12,055,251.92 | -12,055,251.92 | ||||||||||||
| 4. Other | |||||||||||||||
| (iv) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4. Carry-over retained earnings from |
| the defined benefit plans | |||||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (v) Reasonable reserve | |||||||||||||||
| 1. Withdrawal in the report period | |||||||||||||||
| 2. Usage in the report period | |||||||||||||||
| (vi) Others | -30,619,336.48 | -30,619,336.48 | |||||||||||||
| VI. Balance at the end of the period | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 746,816,139.04 | 2,042,758,054.74 | 29,311,350.38 | 2,072,069,405.12 |
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Amount
In RMB
| Item | Semi-annual of 2021 | |||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. The ending balance of the previous year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 685,077,973.07 | 1,910,712,006.37 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error | ||||||||||||
| correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 685,077,973.07 | 1,910,712,006.37 | |||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | 19,980,048.91 | 19,980,048.91 | ||||||||||
| (i) Total comprehensive income | 19,980,048.91 | 19,980,048.91 | ||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (iii) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | ||||||||||||
| 3. Other | ||||||||||||
| (iv) Carrying |
| forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5. Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (v) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period | ||||||||||||
| (vi) Others | ||||||||||||
| VI. Balance at the end of the period | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 705,058,021.98 | 1,930,692,055.28 |
Amount of the previous period
In RMB
| Item | Semi-annual of 2020 | |||||||||
| Share | Other equity instrument | Capital | Less: | Other compre | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ | |
| capital | Preferred stock | Perpetual capital securities | Other | reserve | Inventory shares | hensive income | equity | |||||
| I. The ending balance of the previous year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 710,334,373.89 | 1,935,968,407.19 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. The beginning balance of the current year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 710,334,373.89 | 1,935,968,407.19 | |||||||
| III. Increase/ Decrease in the period (Decrease is listed with “-”) | -17,802,694.21 | -17,802,694.21 | ||||||||||
| (i) Total comprehensive income | -5,747,442.29 | -5,747,442.29 | ||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into |
| owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (iii) Profit distribution | -12,055,251.92 | -12,055,251.92 | ||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | -12,055,251.92 | -12,055,251.92 | ||||||||||
| 3. Other | ||||||||||||
| (iv) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5. Carry-over retained earnings from other comprehensive income |
| 6. Other | ||||||||||||
| (v) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period | ||||||||||||
| (vi) Others | ||||||||||||
| VI. Balance at the end of the period | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 692,531,679.68 | 1,918,165,712.98 |
III. Company Profile
(1) Profile
Shenzhen Nanshan Power Co., Ltd (hereinafter, the “Company”) was reorganized to be a joint-stock enterprisefrom a foreign investment enterprise on 25 November 1993, upon the approval of General Office of ShenzhenMunicipal Government with Document Shen Fu Ban Fu [1993] No.897.
After approved by Document Shen Zhu Ban Fu [1993] No.179 issued by Shenzhen Securities Regulatory Office,on 3 January 1994, the Company offered 40,000,000 RMB common shares and 37,000,000 domestically listedforeign shares in and out of China. And the RMB common shares (A-stock) and domestically listed foreign listedshares (B-stock) were listed in Shenzhen Stock Exchange successively on July 1, 1994 and Nov. 28, 1994.
Headquarter of the Company located on 16/F, 17/F, Han Tang Building, OCT, Nanshan District, Shenzhen City,Guangdong Province, P.R.C.
The financial statement has approved for report by the Board on August 18, 2021.
(2) Scope of financial statement
As of June 30, 2021, there are 9 subsidiaries included in the consolidate financial statement, including:
| Subsidiary | Share holding ratio % | Note |
| 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.(“Environment 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.(“Singapore Company”) | 100.00 | |
| Hong Kong Syndisome Co., Ltd.(“Syndisome”) | 100.00 |
| Zhongshan Shen Nan Dian Storage Co., Ltd.(“Shen Storage”) | 80.00 | |
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | 99.96 |
Scope of the consolidate financial statement and its changes found more in the VI. Change of Consolidate Scope and VII. Equity inother entity carry in the Note
IV. Preparation basis of Financial statement
1. Preparation basis
The Company’s financial statements have been prepared based on the going concern and the actual transactionsand events. In accordance with the Accounting Standards for Business Enterprises- Basic Norms and everyspecific accounting rules, the application guidelines of the Accounting Standards for Business Enterprises,interpretations and other related rules of the Accounting Standards for Business Enterprises (hereinafter referredto as “ASBEs”), and the disclosure requirements of the “Regulation on the Preparation of InformationDisclosures of Companies Issuing Public Shares, No. 15- General Requirements for Financial Reports” of ChinaSecurities Regulatory Commission.
2. Going concern
The Company is capable of going concern for 12 months from the end of the reporting period, and there are nomajor issues affecting the ability to go concern.
V. Major Accounting Policies and EstimationTips on specific accounting policies and accounting estimates:
The Company together with its subsidiaries is mainly engaged in businesses as production of power and heat,power plant construction, fuel trading, engineering consulting and sludge drying. According to the actualproduction and operation characteristics, the Company and its subsidiaries establish certain specific accountingpolicies and accounting estimates in respect of their transactions and matters such as sales revenue recognitionpursuant to relevant business accounting principles. Details are set out in (24) Fixed assets and the (39) Revenueunder Note V.
1. Statement on observation of Accounting Standard for Business EnterprisesThe Financial Statements are up to requirements of Accounting Standards for Business Enterprises, and reflect thefinancial status, operation outcomes, changes of owners(shareholders) equity and cash flows of the Company inreporting period in truthfulness and completeness.
2. Accounting period
A fiscal year from January 1 to December 31 of the Gregorian calendar.
3.Operating cycle
The Company takes 12 months of a year as the normal operating cycle, and takes the operating cycle as thestandard for the liquidity division of assets and liabilities.
4. Book-keeping standard currency
Book-keeping standard of the Company is RMB(CNY)
5. Accounting treatment on enterprise combine under the same control and under the different control
Enterprise combination under the same control: The assets and liabilities obtained by the combining party inenterprise combination are measured at the book value of the consolidated financial statements of the ultimatecontrolling party in accordance with the assets and liabilities of the combined party on the date of combination.The difference between the carrying amount of the net assets obtained and the carrying amount of theconsideration paid for the combination (or the aggregate nominal value of shares issued as consideration) ischarged to the share capital premium in capital reserve. If the share capital premium in capital reserve is notsufficient to absorb the difference, any excess shall be adjusted against retained earnings.
Enterprise combinations not under the same control: The purchaser's assets paid and liabilities incurred orassumed on the date of purchase as a consideration of enterprise combination are measured at fair value, and thedifference between the fair value and its book value is included in the current profit and loss. Where the cost of abusiness combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, thedifference is recognized as goodwill; where the cost of a business combination less than the acquirer’s interest inthe fair value of the acquiree’s identifiable net assets, reckoned into current gains/losses after double-check.
The directly relevant fees incurred in the merger of enterprises shall be reckon into the current gains/losses whenincurred; the transaction costs of issuing equity securities or debt security for the purpose of enterprisecombination should be reckon into the initial recognition of equity security or debt security.
6. Preparation methods for consolidated statement
6.1.Consolidate scope
Scope of the consolidate financial statement is determined on a control basis, including the Company and allsubsidiaries.
6.2. Consolidate procedures
Based on the financial statements of itself and its subsidiaries, the Company compiles the consolidated financialstatements in line with other relevant information. The Company compiles consolidated financial statements,considers the entire enterprise group as an accounting entity, and reflects the overall financial position, operating
results and cash flow of the enterprise group in accordance with the relevant accounting standards' recognition,measurement and presentation requirements and in accordance with unified accounting policies.
The accounting policies and accounting periods adopted by all subsidiaries included in the consolidation scope ofthe consolidated financial statements are consistent with the Company. If the accounting policies and accountingperiods adopted by the subsidiaries are inconsistent with the Company, when preparing the consolidated financialstatements, make necessary adjustments according to the accounting policies and accounting periods of theCompany. For a subsidiary acquired through a business combination not under the same control, its financialstatements are adjusted based on the fair value of the identifiable net assets at the acquisition date. For asubsidiary acquired through a business combination under the same control, its financial statements are adjustedbased on the book value of its assets and liabilities (including the goodwill formed by the ultimate controllingparty's acquisition of the subsidiary) in the ultimate controlling party's financial statements.
The subsidiary's owner's equity, current net profit or loss and the share of current comprehensive incomebelonging to minority shareholders are separately listed under the owner's equity item in the consolidated balancesheet, under the net profit item in the consolidated income statement and under the total comprehensive incomeitem. If the current loss shared by the minority shareholders of a subsidiary exceeds the minority shareholder'share in the owner's equity of the subsidiary at the beginning of the period, the balance shall offset against theminority shareholders' equity.
(1) Increase subsidiaries or businesses
During the reporting period, if a subsidiary or business is added due to a business combination under the samecontrol, adjust the opening balance of the consolidated balance sheet; incorporate the income, expenses, andprofits of the subsidiary or business combination from the beginning of the current period to the end of thereporting period into the consolidated income statement; incorporate the cash flows of the subsidiary or businesscombination from the beginning of the current period to the end of the reporting period into the consolidated cashflow statement, and adjust the relevant items of the comparative statement as if the consolidated reporting entityhad been existing since the time when the ultimate controlling party began controlling.
Where it is possible to exercise control over an investee under the same control due to additional investment, allparties participating in the combination are deemed to have adjusted in their current state when the ultimatecontrolling party commenced control. The equity investment held before the control of the combined party isobtained, the relevant profit or loss and other comprehensive income that have been confirmed between the dateof acquisition of the original equity and the date on which the combining party and the combined party are underthe same control until the combining date, as well as other changes in net assets respectively write down theretained earnings at the beginning of period or the current profits and losses in the comparative statements.
During the reporting period, if a subsidiary or business is added due to a business combination not under the same
control, the opening balance of the consolidated balance sheet period will not be adjusted; the income, expenses,and profits of the subsidiary or business from the acquisition date to the end of the reporting period will beincluded in the consolidated income statement; the cash flows of the subsidiary or business from the acquisitiondate to the end of the reporting period are included in the consolidated statement of cash flow.
For reasons such as additional investments that can control an investee not under the same control, the Companyremeasures the equity of the acquiree held before the purchase date according to the fair value of the equity on thepurchase date, and the balance between the fair value and its book value is included in the current investmentincome. If the equity of the acquiree held before the purchase date involves other comprehensive income underthe equity method and other changes in owner's equity other than net profit or loss, other comprehensive incomeand profit distribution, other comprehensive income and other changes in owner's equity related to it shall beconverted into the investment income of the current period on the date of purchase, except for othercomprehensive income arising from the re-measurement of the net liabilities or changes in net assets of thedefined benefit plan of the investee.
(2)Disposal of subsidiaries or businesses
①General treatment method
During the reporting period, when the Company disposes of a subsidiary or business, the income, expenses andprofits of the subsidiary or business from the beginning of the period to the disposal date are included in theconsolidated income statement, while the cash flow of the subsidiary or the business from the beginning of theperiod to the disposal date is included in the consolidated statement of cash flow.
For control rights loss in original subsidiary for partial equity investment disposal or other reasons, the remainedequity should re-measured based on the fair value at date of control losses. The difference between the net assetsof original subsidiary share by proportion held that sustainable calculated since purchased date (or combinationdate) and sum of consideration obtained by equity disposal and fair value of remain equity, reckoned into thecurrent investment income of control rights loss. Other comprehensive income related to the original subsidiary'sequity investment or other changes in owner's equity other than net profit and loss, other comprehensive incomeand profit distribution will be converted to current investment income when the control is lost, except for othercomprehensive income arising from the remeasurement of the net liabilities or changes in net assets of the definedbenefit plan of the investee.
If other investors’ capital increases in the subsidiary results in a decline in the Company's shareholding ratio andthus loss of control power, accounting shall be conducted in accordance with the above principles.
② Dispose subsidiary step-by-step
When the Company disposes of equity investment in a subsidiary by a stage-up approach with several transactionsuntil the control over the subsidiary is lost, these several transactions related to the disposal of equity investment
in a subsidiary are accounted for as transactions in a basket when the terms, conditions and economic impacts ofthese several transactions meet the following one or more conditions:
i. these transactions are entered into at the same time or after considering their impacts on each other;ii. these transactions as a whole can reach complete business results;iii the occurrence of a transaction depends on at least the occurrence of an other transaction;iv.an individual transaction is not deemed as economic, but is deemed as economic when considered with othertransactions.
When several transactions related to the disposal of equity investment in a subsidiary until the control over thesubsidiary is lost fall within transactions in a basket, each of which is accounted for as disposal of a subsidiarywith a transaction until the control over a subsidiary is lost; however, the different between the amount of disposalprior to the loss of control and the net assets of a subsidiary attributable to the disposal investment shall berecognized as other comprehensive income in consolidated financial statements and transferred to profit or lossfor the period at the time when the control is lost.
If the transactions that dispose of the equity investment in the subsidiary until the loss of control do not belong tothe package transaction, before the loss of control, the relevant policies for partial disposal of the equityinvestment in the subsidiary shall be accounted for without losing control. When the control right is lost, theaccounting treatment shall be carried out according to the general treatment method for disposing of thesubsidiary.
(3) Purchase of minority shares in subsidiaries
The difference between the Company's newly acquired long-term equity investment due to the purchase ofminority shares and the net assets share calculated continuously by the subsidiary from the date of purchase (ormerger date) in accordance with the calculation of the newly increased shareholding ratio, adjust the equitypremium in the capital reserve in the consolidated balance sheet, if the equity premium in the capital reserve isinsufficient to offset, adjust the retained earnings.
(4) Partial disposal of equity investment in subsidiaries without losing control
The difference between the disposal cost obtained as a result of partial disposal of long-term equity investment ina subsidiary without losing control and the net assets share calculated continuously by the subsidiary from the dateof purchase or merger corresponding to the disposal of the long-term equity investment, adjust the equitypremium in the capital reserve in the consolidated balance sheet, if the equity premium in the capital reserve isinsufficient to offset, adjust the retained earnings.
7.Classification of joint arrangement and accounting treatment for joint ventureJoint arrangement is divided into joint operation and joint venture.As a joint party of the joint arrangement, it is a joint operation when the Company enjoys assets related to the
arrangement and bears the liabilities related to the arrangement.The company confirms the following items related to the share of interests in its joint operations, and inaccordance with the provisions of the relevant accounting standards for accounting treatment:
(1) Recognize the assets held solely by the Company, and recognize assets held jointly by the Company inappropriation to the share of the Company;
(2) Recognize the obligations assumed solely by the Company, and recognize obligations assumed jointly by theCompany in appropriation to the share of the Company;
(3) Recognize revenue from disposal of the share of joint operations of the Company;
(4) Recognize fees solely occurred by Company;
(5) Recognize fees from joint operations in appropriation to the share of the Company.Accounting policy for the joint venture investment found more in (22) Long-term equity investment under Note V.
8. Determination criteria of cash and cash equivalent
While preparing the cash flow statement, the stock cash and savings available for payment at any time arerecognized as cash. The investments meets the follow four conditions at the same time are recognized as cashequivalent, that is short-term (normally fall due within three months from the date of acquisition) and highlyliquid investments held the Group which are readily convertible into known amounts of cash and which aresubject to insignificant risk of value change.
9. Foreign currency business and foreign currency statement translation
9.1.Foreign currency business
Foreign currency business uses the spot exchange rate on the transaction date as the conversion rate to convertforeign currency amounts into RMB for accounting.
The balance of foreign currency monetary items at the balance sheet date is converted at the spot exchange rate onthe balance sheet date, the resulting exchange difference is included in current profit and loss, except that theexchange difference arising from foreign currency special borrowings related to the acquisition or construction ofassets eligible for capitalization is disposed with the principle of borrowing expenses capitalization.
9.2 Foreign currency statement translation
Assets and liabilities in the balance sheet are converted at the spot exchange rate on the balance sheet date; theowners' equity items are converted at the spot exchange rate at the time of occurrence, except for the"undistributed profit" item. The income and expense items in the income statement are converted at the spotexchange rate on the transaction date.
When disposing of an overseas operation, the translation difference in the foreign currency financial statementsrelated to the overseas operation is transferred from the owner's equity item to the disposal of current profit orloss.
10. Financial instrument
Financial instrument consist of financial assets, financial liability and equity instrument.
10.1.Classification of financial instrument
Based on the Company's business model for managing financial assets and the contractual cash flowcharacteristics of financial assets, financial assets are classified as the financial assets measured at amortized cost,the financial assets (debt instruments) measured at fair value and whose changes are included in othercomprehensive income and the financial assets measured at fair value and whose changes are included in currentprofit and loss at initial recognition.
Business model to collect the contractual cash flow, and the contractual cash flow is only the payment of theprincipal and the interest based on the outstanding principal amount, is classified as a financial asset measured atamortized cost; business model to collect the contractual cash flow and sell the financial asset, and the contractualcash flow is only the payment of principal and the interest based on the outstanding principal amount, is classifiedas a financial asset measured at fair value and whose changes are included in other comprehensive income (debtinstruments); other financial assets other than these are classified as financial assets measured at fair value andwhose changes are included in the current profit and loss.
For a non-tradable equity instrument investment, the Company determines at the time of initial recognitionwhether to designate it as a financial asset (equity instrument) measured at fair value and whose changes areincluded in other comprehensive income.
At the time of initial recognition, financial liabilities are classified into financial liabilities that are measured at fairvalue and whose changes are included in the current profit and loss and financial liabilities that are measured atamortized cost.
A financial liability that meets one of the following conditions can be designated as a financial liability measuredat fair value and whose changes are included in current profit and loss at initial measurement:
1) This designation can eliminate or significantly reduce accounting mismatches.
2) In accordance with the corporate risk management or investment strategy stated in formal written documents,make management and performance evaluation to financial liability portfolios or financial assets and financialliability portfolios based on fair value, and report to the key management personnel within the enterprise based onthis.
3) The financial liability includes embedded derivatives that need to be split separately.
According to the above conditions, the financial liabilities designated by the Company mainly include: (Specificdescription of the designated situation)
10.2 Recognition basis and measurement method of financial instruments
(1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include bills receivable, accounts receivable, other receivables,long-term receivables, debt investment, etc., which are initially measured at fair value, and related transactioncosts are included in the initially recognized amount; accounts receivable excluding significant financingcomponents and accounts receivable with financing components not exceeding one year that the Company decidesnot to consider are initially measured at the contract transaction price.
The interest calculated by using the effective interest method during the holding period is included in the currentprofit and loss.
When taking back or disposing, the difference between the cost obtained and the book value of the financial assetis included in the current profit and loss.
(2) Financial assets (debt instrument) measured at fair value and whose changes are reckoned into othercomprehensive incomeThe financial assets (debt instrument) measured at fair value and whose changes are reckoned into othercomprehensive income consist of receivable financing and other debt investment and initially measured at fairvalue, relevant transaction fees are included in initial recognized amount. The financial assets are subsequentlymeasured at fair value, and the fair value changes are reckoned into other comprehensive income except for theinterest, impairment loss or gain and exchange gain or loss calculated by actual interest rate method.Upon termination of the recognition, the accumulated gains or losses previously included in other comprehensiveincome shall be transferred out and reckoned into current profit and loss.
(3) Financial assets (equity instrument) measured at fair value and whose changes are reckoned into othercomprehensive incomeThe financial assets (equity instrument) measured at fair value and whose changes are reckoned into othercomprehensive income consist of the equity instrument investment etc. and initially measured at fair value,relevant transaction fees are included in initial recognized amount. The financial assets are subsequently measuredat fair value, and the fair value changes are reckoned into other comprehensive income. The dividend obtainedshould reckoned into current gains/losses.Upon termination of the recognition, the accumulated gains or losses previously included in other comprehensiveincome shall be transferred out and reckoned into retained earnings.
(4) Financial assets measured at fair value and whose changes are reckoned into current gains/lossesThe financial assets measured at fair value and whose changes are reckoned into current gains/losses consist oftrading financial assets, derivative financial assets and other non-current financial assets etc. and initiallymeasured at fair value, relevant transaction fees are included in current gains/losses. The financial assets are
subsequently measured at fair value, and the fair value changes are reckoned into current gains/losses.
(5) Financial liability measured at fair value and whose changes are reckoned into current gains/losses
The financial liability measured at fair value and whose changes are reckoned into current gains/losses consist oftrading financial liability and derivative financial liability etc. and initially measured at fair value, relevanttransaction fees are included in current gains/losses. The financial liabilities are subsequently measured at fairvalue, and the fair value changes are reckoned into current gains/losses.Upon termination of the recognition, the difference between its book value and the consideration paid is includedin the current gains/losses.
(6) Financial liability measured at amortized cost
The financial liabilities measured at amortized cost consist of short-term loans, note payable, account payable,other account payable, long-term loans, bond payable and long-term account payable, and initially measured atfair value, relevant transaction fees are included in initial recognized amount.
The interests calculated by effective interest rate method during the holding period is reckoned into currentgains/losses.
Upon termination of the recognition, the difference between consideration paid and the book value of financialliability is reckoned into current gains/losses.
10.3. Recognition basis and measurement method for transfer of financial assets
In the event of financial asset transfer, the Company shall assess the degree of risk and reward of retaining theownership of the financial asset and deal with the following circumstances respectively:
(1) Where almost all risks and rewards on the ownership of a financial asset are transferred, the recognition of thefinancial asset shall be terminated, and the rights and obligations generated or retained in the transfer shall beseparately recognized as assets or liabilities.
(2) Where almost all risks and rewards on the ownership of a financial asset are retained, the financial asset shallcontinue to be recognized.
(3) Where virtually all risks and rewards on the ownership of a financial asset are neither transferred nor retained(that is, other conditions except for (1) and (2) of this Article), depending on whether it retains control of thefinancial asset, deal with the following circumstances respectively:
1) Where the control of such financial asset is not retained, the recognition of the financial asset is terminated, and
the rights and obligations generated or reserved in the transfer are identified as an asset or liability.
2) Where the control of such financial asset is retained, the relevant financial assets shall continue to berecognized according to the extent of its continued involvement in the transferred financial assets, and the relevantliabilities shall be recognized accordingly. The extent of continued involvement in the transferred financial assetsrefers to the extent of the risk or reward of changes in the value of the transferred financial asset assumed by theCompany.
When judging whether the financial asset transfer meets the termination of recognition of the said financial asset,adopt the principle of substance over form. The company divides the financial asset transfer into overall transferand partial transfer of financial asset.
(1) Where the overall transfer of financial assets meets the conditions for recognizing the termination, thedifference between the following two amounts shall be recorded into the profits and losses of the current period:
1) The carrying amount of the transferred financial asset on the date of the termination of recognition.
2) The sum of the consideration received by the transfer of financial assets and the amount corresponding to theportion of which the recognition is terminated of the accumulated amount of changes in fair value originallyincluded in other comprehensive income (The financial assets involved in transfer are measured at fair value andtheir changes are included in other comprehensive income).
(2) Where the financial asset is partially transferred and the transferred portion overall meets the conditions forrecognizing the termination, the carrying amount of overall financial asset before transfer shall be apportionedbetween the portion to be terminated from recognition and the portion continued to be recognized (In suchcircumstances, the retained service assets shall be regarded as a portion of the financial assets continuing to berecognized) in accordance with their relative fair value on the transfer date, and the difference between thefollowing two amounts shall be recorded into the profits and losses of current period.
1) The carrying amount of the portion on the date of the termination of recognition.
2) The sum of the consideration received from the portion of which the recognition is terminated and the amountcorresponding to the portion of which the recognition is terminated of the accumulated amount of changes in fairvalue originally and directly included in other comprehensive income (The financial assets involved in transfer aremeasured at fair value and their changes are included in other comprehensive income).
If the transfer of financial assets does not meet the conditions for derecognition, the financial assets are
continuously recognized, and the consideration received is recognized as a financial liability.
10.4. Termination recognition of financial liability
Where the current obligation of a financial liability have been discharged in whole or in part, the recognition ofthe financial liability or part thereof shall be terminated; If the Company entered into an agreement with itscreditors to replace its existing financial liabilities with the new financial liability, and the contract terms of thenew financial liabilities and the existing financial liabilities are substantially different, the existing financialliabilities shall be terminated for recognition and the new ones shall be recognized at the same time. As forsubstantive changes made to the contract terms (in whole or in part) of the existing financial liabilities, theexisting financial liabilities (or part of it) will be terminated for recognition, and the financial liabilities after termrevision will be recognized as a new financial liability.
When a financial liability is derecognized in whole or in part, the difference between the book value of thefinancial liability derecognized and the consideration paid (including the non-cash assets transferred out or thenew financial liabilities assumed) is included in the current profit and loss.
If the Company repurchases part of the financial liabilities, the entire book value of the financial liabilities will beallocated on the repurchase date according to the relative fair value of the continuing recognition part and thederecognition part. The difference between the book value allocated to the derecognition part and theconsideration paid (including the transferred non-cash assets or assumed new financial liabilities) is included inthe current profit and loss.
10.5. Methods for determining the fair value of financial assets and financial liabilitiesFor financial instruments that have an active market, their fair values are determined by using quotes in the activemarket. For financial instruments that do not have an active market, valuation techniques are used to determinetheir fair values. In the valuation, the Company adopts valuation techniques that are applicable under the currentcircumstances and have sufficient available data and other information support, chooses the input valuesconsistent with the characteristics of assets or liabilities considered by market participants in the transactions ofrelated assets or liabilities, and prioritizes the relevant observable input values. The Company uses unobservableinput values only if the relevant observable input values cannot be obtained or are not practicable.
10.6. Test methods and accounting treatment methods for impairment of financial assetsThe Company considers all reasonable and evidence-based information, including forward-looking information,and estimates the expected credit losses of financial assets measured at amortized cost by the single or combinedway and financial assets (debt instruments) measured at fair value and whose changes are included in othercomprehensive income. The measurement of expected credit losses depends on whether a significant increase incredit risk has occurred since the initial recognition of a financial asset.
If the credit risk of the financial instrument has increased significantly since initial recognition, the Company shallmeasure its loss provision at an amount equivalent to the expected credit loss throughout the life of the financialinstrument. If the credit risk of the financial instrument has not increased significantly since initial recognition, theCompany shall measure its loss provision at an amount equivalent to the expected credit loss of the financialinstrument in the next 12 months. The increased or reversed amount of the loss provision thus formed shall beincluded in the current profit and loss as impairment losses or gains.
Usually, the Company considers that the credit risk of the financial instrument has increased significantly when itis overdue for more than 30 days, unless there is conclusive evidence that the credit risk of the financialinstrument has not increased significantly after initial recognition.
If the credit risk of a financial instrument at the balance sheet date is low, the Company will consider that thecredit risk of the financial instrument has not increased significantly since initial recognition.
Regarding the note receivable, account receivables and receivables financing, whether or not it contains asignificant financing component, the Company always measures its loss provisions at an amount equivalent to theexpected credit loss throughout the duration.
For lease receivables and long-term receivables formed by the company through sales of goods or rendering ofservices, the Company always chooses to measure the loss reserves at an amount equivalent to expected creditlosses during the entire duration.
For notes receivable, accounts receivable, other receivables, financing of accounts receivable and long-termreceivables with objective evidence showing that there is impairment and is applicable to individual assessment,perform separate impairment tests, confirm expected credit losses, and make provisions for impairment; for notesreceivable, accounts receivable, other receivables, and financing of accounts receivable for which there is noobjective basis for impairment, or when there is insufficient evidence to assess expected credit losses at areasonable cost at the level of individual instruments, the Company refers to historical credit loss experience,combines with current conditions and judgments on future economic conditions, and divides the notes receivable,accounts receivable, other receivables, financing of accounts receivable and long-term receivables into severalportfolios based on the characteristics of credit risk, and calculates the expected credit loss on the basis of theportfolio. Details as follows:
(1)Note receivables
| Name of the combination | Method of measuring credit loss |
| Bank acceptance bill of state-owned banks | For notes receivable classified as bank acceptance portfolio, the management appraises that such payments have low credit risks and low expected credit loss rate, and should make no provision for impairment. |
(2)Account receivable
| Name of the combination | Method of measuring credit loss |
| Electricity transaction receivable | Regarding accounts receivable divided into power transactions, engineering operation and maintenance, and environmental protection services, referring to historical credit loss experience, and combined with current conditions and forecasts of future economic conditions, the management evaluates that such payments have low credit risk and low expected credit loss rate, so no impairment provision is made; unless there is evidence that the credit risk of a certain receivable is relatively large. |
| Receivable for engineering operation and maintenance | |
| Environmental protection labor receivables |
(3)Other account receivable
| Name of the combination | Method of measuring credit loss |
| Combination of the export tax rebate, VAT rebate upon levy | The company classifies the payments, tax refunds receivable, and collection and withholding payments from subsidiaries within the scope of accounts receivable consolidation that have no significant recovery risks into other portfolios, and no bad debt provision is made. |
| Combination of the deposit margin reserve | |
| Other vary receivable and temporary payment in addition to the above combination |
(4)Receivable financing
| Name of the combination | Method of measuring credit loss |
| Bank acceptance bill of the bank with lower credit risk | With reference to historical credit loss experience, combined with current conditions and forecasts of future economic conditions, the expected credit loss is calculated through the default risk exposure and the expected credit loss rate of the entire duration. |
| Trade acceptance |
11. Note receivable
12.Account receivable
13.Receivable financing
14. Other account receivable
Recognition method and accounting treatment of the expected credit losses on other account receivables
15. Inventory
15.1. Categories of inventory
Inventory consists of fuels and raw materials etc.
15.2. Valuation method of delivered inventory
The inventories are valued on a weighted average basis at the time of delivery.
15.3.Basis for determining the net realizable value of different types of inventoriesFor inventory of products that are directly used for sale, such as finished products, inventory products, andmaterials for sale, in the normal production and operation process, the amount after subtracting the estimatedselling expenses and relevant taxes from the estimated selling price shall be used to determine the net realizablevalue. For inventory of materials that need to be processed, in the normal production and operation process, theamount after subtracting the estimated cost, estimated sales expense, and related taxes at the time of completionfrom the estimated selling price of the finished product shall be used to determine the net realizable value. The netrealizable value of the inventory held for the execution of the sales contract or labor service contract is calculatedon the basis of the contract price. If the quantity of the inventory held is more than the quantity ordered by thesales contract, the net realizable value of the excess inventory is calculated based on the general sales price.
At the end of the period, provision for inventory depreciation is made based on a single inventory item; but forinventory with a large quantity and low unit price, provision for inventory depreciation is made based on theinventory category. For inventories that are related to the product series produced and sold in the same region,have the same or similar end-use or purpose, and are difficult to measure separately from other items, theinventory depreciation reserve shall be accrued in a consolidated manner.
15.4. Inventory system
Perpetual inventory system required
15.5. Amortization method of low-value consumables and packaging
(1) Low-value consumables-one pass method
(2) Packaging- one pass method
16. Contractual assets
If the Company has transferred goods to customers and has the right to receive consideration, and the rightdepends on factors other than the time lapses, it is recognized as contractual assets. The Company's unconditional(that is, only depending on the time lapses) right to collect consideration from customers are separately listed asreceivables.
17. Contractual cost
The cost of obtaining the contractIf the incremental cost (that is, the cost that would not be incurred without obtaining the contract) incurred by theCompany to obtain the contract is expected to be recovered, it shall be recognized as an asset, and use the samebasis for the recognition of the income of goods or services related to the asset for sales, and be included in the
current profit and loss. If the asset amortization period does not exceed one year, it shall be included in the currentprofit and loss when it occurs. Other expenses incurred by the Group in order to obtain the contract shall beincluded in the current profit and loss when incurred, except for those clearly borne by the customer.
The cost of fulfilling the contractThe cost incurred by the Company for the performance of the contract that does not fall within the scope of otheraccounting standards for business enterprises except the income standard and meets the following conditions atthe same time is recognized as an asset: (1) The cost is directly related to a current or expected contract; (2) Thecost increases the resources of the Group for fulfilling the performance obligations in the future; (3) The cost isexpected to be recovered. The above-mentioned assets are amortized on the same basis as the recognition of theincome of goods or services related to the asset and included in the current profit and loss.
Contract cost impairmentWhen the Company determines the impairment loss of assets related to the contract cost, it first determines theimpairment loss of other assets related to the contract that are confirmed in accordance with other relevantenterprise accounting standards; then, based on the difference between the book value of which is higher than theremaining consideration that the Company is expected to obtain due to the transfer of the asset-relatedcommodities and the estimated cost of transferring the related commodities, the excess shall be provided forimpairment and recognized as an asset impairment loss.
If the impairment factors of the previous period have changed, causing the aforementioned difference is higherthan the book value of the asset, the original provision for asset impairment shall be reversed and included in thecurrent profit and loss, but the book value of the asset after the reversal shall not exceed the book value of theasset on the date of reversal under the assumption that no impairment provision is made.
18. Assets held-for-sale
19.Debt investment
20.Other debt investment
21. Long-term receivables
22. Long-term equity investments
22.1. Criteria judgement for joint control and significant influence
Joint control is the Company’s contractually agreed sharing of control over an arrangement, which relevantactivities of such arrangement must be decided by unanimously agreement from parties who share control. Where
the Company and other joint ventures exercise joint control over the investee and enjoy the rights to the net assetsof the investee, the investee is a joint venture of the Company.Significant influence is the right of the Company to participate in the financial and operation decision-making ofan enterprise, but not to control or jointly control the formulation of such policies with other parties. Where theCompany is able to exert significant influence on the investee, the investee shall be a joint venture of theCompany.
22.2. Determination of initial investment cost
(1) Long-term equity investment resulting from enterprise combination
Enterprise combination under the same control: If the Company pays cash, transfers non-cash assets or assumesdebt, and issues equity securities as the consideration for the merger, the share of the book value of the owner'sequity of the combined party in the consolidated financial statements of the ultimate controlling party on thecombining date shall be used as the initial investment cost of long-term equity investment. If it is possible tocontrol the investee under the same control due to additional investments, etc., the initial investment cost oflong-term equity investment shall be determined based on the share of the book value of the net assets of thecombined party in the consolidated financial statements of the ultimate controlling party on the merger date. Thedifference between the initial investment cost of the long-term equity investment on the merger date and the sumof the book value of the long-term equity investment before the merger plus the book value of the new sharepayment consideration obtained on the merger date adjusts the equity premium. If the equity premium isinsufficient to be offset, the retained earnings shall be offset.
Business combination not under the same control: The Company uses the combination cost determined on thepurchase date as the initial investment cost of the long-term equity investment. If it is possible to exercise controlover an investee that is not under the same control due to additional investments, etc., the sum of the book valueof the original equity investment plus the newly increased investment cost is used as the initial investment costcalculated by the cost method.
(2) Long-term equity investment obtained through other methods
For a long-term equity investment obtained by paying cash, the actually paid purchase price is taken as the initialinvestment cost.
For a long-term equity investment obtained by issuing equity securities, the fair value of the issued equitysecurities is taken as the initial investment cost.
On the premise that the non-monetary asset exchange has commercial substance and that the fair value of theassets swapped in or out can be reliably measured, the initial investment cost of the long-term equity investmentswapped in by non-monetary assets exchange is determined by the fair value of assets swapped out and the
relevant payable taxes and fees, unless there is conclusive evidence that the fair value of the assets swapped in ismore reliable; for non-monetary assets exchange that do not meet the above preconditions, the book value of theassets swapped out and the relevant taxes and fees payable are used as the initial investment cost of the long-termequity investment swapped in.
For a long-term equity investment obtained through debt restructuring, its entry valueis determined based on the fair value of the abandoned creditor's rights and other costs such as taxes directlyattributable to the asset, and the difference between the fair value of the abandoned creditor's rights and the bookvalue is included in the current profit and loss.
22.3. Follow-up measurement and gain/loss recognition
(1) Long-term equity investment measured at cost
The long-term equity investment in subsidiaries shall be measured at cost. In addition to the actual prices or theannounced but yet undistributed cash dividend or profit in consideration valuation, the current investment return isrecognized by the announced cash dividend or profit by the invested units.
(2) Long-term equity investment measured at equity
The long-term equity investment in associated enterprise and joint ventures shall be measured at cost. If the initialinvestment cost is greater than than the share of fair value of the invested entity’s identifiable net assets, the initialinvestment cost of the long-term equity investment will not be adjusted; if the initial investment cost is less thanthan the share of fair value of the invested entity’s identifiable net assets, the difference shall reckoned in currentgains/losses.
The investment gain and other comprehensive income shall be recognized based on the Company’s share of thenet profits or losses and other comprehensive income made by the investee, respectively. Meanwhile, the carryingamount of long-term equity investment shall be adjusted. The carrying amount of long-term equity investmentshall be reduced based on the Group’s share of profit or cash dividend distributed by the investee. In respect of theother movement of net profit or loss, other comprehensive income and profit distribution of investee, the carryingvalue of long-term equity investment shall be adjusted and included in the owners’ equity.
The Company shall recognize its share of the investee’s net profits or losses based on the fair values of theinvestee’s individual separately identifiable assets at the time of acquisition, after making appropriate adjustmentsthereto during the accounting period and according to the accounting policy of the Company. During the period ofholding the investment, the investee prepares the consolidated financial statements based on the net profit, othercomprehensive income, and the amount attributable to the investee in changes in other owners' equity in theconsolidated financial statements for business accounting.
When the Company confirms that it should share the losses incurred by the investee, it shall proceed in thefollowing order. Firstly, write off the book value of the long-term equity investment. Secondly, if the book valueof the long-term equity investment is not sufficient to offset, the investment loss shall continue to be recognizedwithin the limit of the book value of long-term equity that substantially constitutes a net investment in the investee,and offset the book value of long-term receivables. Finally, after the above-mentioned treatment, if the enterprisestill bears additional obligations as stipulated in the investment contract or agreement, the accrual liabilities arerecognized according to the estimated obligations and included in the current investment loss.
(3) Disposal of long-term equity investment
When disposing of a long-term equity investment, the difference between its book value and the actual purchaseprice is included in the current profit and loss.
When disposing of a long-term equity investment accounted for by using the equity method, use the same basis asthe investee directly disposes of related assets or liabilities, and make accounting treatment to the portion that wasoriginally included in other comprehensive income according to the corresponding proportion. The owner's equityrecognized as a result of changes in other owner's equity of the investee other than net profit or loss, othercomprehensive income, and profit distribution is carried forward to the current profit and loss on a pro rata basis,except for other comprehensive income arising from the remeasurement of the net liabilities or net assets changesof the defined benefit plan by the investee.
If the joint control or significant influence on the investee is lost due to the disposal of part of the equityinvestment, etc., the remaining equity after disposal shall be calculated in accordance with the financial instrumentrecognition and measurement standards, and the difference between the fair value and the book value on the dayof losing the joint control or significant influence is included in the current profit and loss. Other comprehensiveincome of the original equity investment recognized due to using the equity method for accounting shall adopt theaccounting treatment on the same basis as the investee directly disposes of related assets or liabilities whenterminating the adoption of equity method for accounting. The owner's equity recognized as a result of changes inthe owner's equity other than net profit or loss, other comprehensive income and profit distribution of the investeeis transferred to current profit and loss when terminating the adoption of equity method for accounting.
The control over the investee is lost due to the disposal of part of the equity investment and the capital increase inthe subsidiary by other investors resulting in a decline in the shareholding ratio of the Company, in preparingseparate financial statements, the remaining equity interest which can apply common control or impose significantinfluence over the investee shall be accounted for using equity method. Such remaining equity interest shall betreated as accounting for using equity method since it is obtained and adjustment was made accordingly. Forremaining equity interest which cannot apply common control or impose significant influence over the investeel,it shall be accounted for using the recognition and measurement standard of financial instruments. The differencebetween its fair value and carrying amount as at the date of losing control shall be included in profit or loss for the
current period.
The disposed equity is obtained through business combination due to additional investment and other reasons,when preparing individual financial statements, if the remaining equity after disposal uses cost method or equitymethod for accounting, the equity investments held before the acquisition date shall be carried forward inproportion to other comprehensive income and other owner's equity recognized through equity method accounting;For the remaining equity interest after disposal accounted for using the recognition and measurement standard offinancial instruments, other comprehensive income and other owners’ equity shall be fully transferred.
23. Investment real estate
Measurement mode of the investment real estateMeasure by costDepreciation or amortization methodInvestment real estate is defined as the real estate with the purpose to earn rent or capital appreciation or both,including the rented land use rights and the land use rights which are held and prepared for transfer afterappreciation, the rented buildings. (Including buildings for lease after self-construction or development activitiescompleted and buildings under construction or development for lease in the future)
Investment real estate of the Company are measured at cost model. The Investment real estate- rental buildingsmeasured at cost model has the same depreciation policy as fixed assets, the land use right for lease is exercise theamortization policy as intangible assets.
24. Fixed assets
(1) Recognition conditions
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providingservices, lease or for operation & management, and have more than one fiscal year of service life. Fixed assets arerecognized when the following conditions are simultaneously met:
(1) The economic benefits with the fixed assets concerned are likely to flow into the enterprise; and
(2) cost of the fixed assets can be measured reliably.
(2)Depreciation method
| Category | Depreciation method | Depreciation period | Residuals rate | Annual depreciation rate |
| Houses and buildings | Average age method | 20-year | 10 | 4.5 |
| Equipment-fuel machinery sets(Note) | The work quantity method | 10 |
| Equipment (fuel machinery sets excluded) | Average age method | 15-20 years | 10 | 4.5-6 |
| Transportation tools | Average age method | 5-year | 10 | 18 |
| Other | Average age method | 5-year | 10 | 18 |
The depreciation of fixed assets is calculated and accrued by the straight-line depreciation method, and the depreciation rate isdetermined according to the fixed asset category, estimated useful life and estimated net residual value rate. If the service life of eachcomponent of the fixed asset is different or the economic benefits are provided to the enterprise in different ways, differentdepreciation rates or depreciation methods shall be selected and depreciation shall be calculated separately.
Note: gas turbine generator set is provided with depreciation under workload method, namely to determine the depreciation amountper hour of gas turbine generator set based on equipment value, predicted net remaining value and predicted generation hours. Detailsare set out as follows:
| Name of the Company | Fixed assets | Depreciation amount (RMB/Hour) |
| The Company | ||
| Generating unit 1# | 538.33 | |
| Generating unit 3# | 601.20 |
| New Power | Generating unit 10# | 520.61 |
| Zhongshan Electric Power | Generating unit 1# | 4,246.00 |
| Generating unit 3# | 4,160.83 |
(3) Recognition basis, valuation and depreciation method of financial leased fixed assets
25. Construction-in-progress
Construction in progress take the necessary expenditures incurred before the construction of the asset reaching theexpected usable state as the entry value of the fixed assets. If the constructed fixed assets have reached theexpected usable state of the project, but the final accounts for completion have not yet been processed, from thedate of reaching the expected usable state, the constructed fixed assets will be transferred to the fixed assets at theestimated value based on the project budget, cost, or actual project cost, and accrue the depreciation of fixedassets according to the Company's fixed asset depreciation policy, and adjust the original temporary estimatedvalue according to the actual cost after completing the final accounts, but not adjust the original accrueddepreciation amount.
26. Borrowing expenses
26.1.Recognition principle of the capitalization of borrowing expenses
Borrowing expenses include interest, amortization of discounts or premiums related to borrowings, ancillary costs
incurred in connection with the arrangement of borrowings, and exchange differences arising from foreigncurrency borrowings.
If the borrowing expenses incurred by the company can be directly attributable to the acquisition, construction orproduction of assets that meet the capitalization conditions, they shall be capitalized and included in the cost ofthe relevant assets; other borrowing expenses shall be recognized as expenses based on the amount incurred whenincurred and included in current profit and loss.
Assets qualified for capitalization, refers to the fixed assets, investment real estate, inventory and other assets thatrequire a considerable period of time for purchase, construction or production activities to reach the intended useor sale status.
The capitalization of borrowing expenses starts when the following conditions are met at the same time:
(1) Asset expenditures have occurred, including expenditures in the form of paying cash, transferring non-cashassets, or assuming interest-bearing debts for the acquisition, construction or production of assets that meet theconditions for capitalization;
(2) borrowing expenses have incurred;
(3) The acquisition, construction or production activities necessary for the assets to reach the intended usable orsaleable state have begun.
26.2. Period of capitalization of borrowing expenses
The period of capitalization refers to the period from the point when the capitalization of the borrowing expensesstarts to the point when the capitalization is stopped. The period during which the capitalization of the borrowingexpenses is suspended is not included.
When the acquisition, construction or production of assets that meet the capitalization conditions reaches theintended usable or saleable state, the capitalization of borrowing expenses shall cease.
When part of projects in the acquisition, construction or production of assets that meet the capitalizationconditions are completed separately and can be used independently, the capitalization of the borrowing expensesof the part of the assets shall be stopped.
If each part of the assets purchased, constructed or produced is completed separately, but cannot be used or solduntil the entirety is completed, the capitalization of borrowing expenses shall be stopped when the entire asset iscompleted.
26.3. The period of suspension of capitalization
If an abnormal interruption occurs during the acquisition, construction or production of an asset that meets the
capitalization conditions, and the interruption lasts for more than 3 months, the capitalization of borrowingexpenses shall be suspended; if the interruption is the necessary procedure for the acquisition, construction orproduction of assets that meet the capitalization conditions to reach the intended usable state or saleable state, theborrowing expenses shall continue to be capitalized. The borrowing expenses incurred during the interruptionperiod shall be recognized as the current profit and loss, and the borrowing expenses shall continue to becapitalized until the acquisition, construction or production of the asset restarts.
26.4. Calculation method of capitalization rate and capitalization amount of borrowing expensesFor special loans borrowed for the acquisition, construction or production of assets that meet the capitalizationconditions, the amount after subtracting the interest income obtained by depositing the unused borrowing funds inthe bank or the investment income obtained from temporary investment from the actual borrowing expensesincurred in the current period of the special loans is used to determine the capitalized amount of borrowingexpenses.
For general borrowings used for the acquisition, construction or production of assets that meet the capitalizationconditions, the amount of borrowing expenses that should be capitalized for general borrowings is calculated anddetermined based on the weighted average of the asset expenditures of the accumulated asset expenditureexceeding the part of the special borrowings multiplied by the capitalization rate of the general borrowings used.The capitalization rate is calculated and determined based on the weighted average interest rate of generalborrowings.
27. Biological assets
28. Oil and natural gas assets
29. Right-of-use assets
30. Intangible assets
(1)Valuation method, service life and impairment test
30.1. Valuation methods of intangible assets
(1) When the company obtains intangible assets, they shall be initially measured at cost;The cost of outsourcing intangible assets includes the purchase price, relevant taxes, and other expendituresincurred to make the assets reach the intended purpose. If the purchase price of intangible assets have a delay inpayment beyond normal credit conditions and is of financing nature, the cost of intangible assets is determined onthe basis of the current value of the purchase price.
For intangible assets used by the debtor to repay the debt through debt restructuring, the entry value is determined
by the fair value of the waived creditor’s rights and other costs that can be directly attributable to the tax incurredto make the asset reach its intended use, and the difference between the fair value and the book value of thewaived creditor's rights is included in the current profit and loss.
On the premise that the non-monetary asset exchange has commercial substance and the fair value of the swap-inassets and the swap-out assets can be reliably measured, the entry value of the swap-in intangible assets throughnon-monetary assets exchange is determined on the basis of the fair value of the swap-out assets, unless there isconclusive evidence that the fair value of the swap-in assets is more reliable; for non-monetary asset exchangesthat do not meet the above premises, the book value of the swap-out assets and the relevant taxes and fees payableshall be used as the cost of the swap-in intangible assets, but not recognize the profit and loss.
(2) Follow-up measurement
Analyze and judge the service life of intangible assets when acquiring them.Intangible assets with a limited service life are amortized on a straight-line basis within the period of economicbenefits brought to the enterprise; or the intangible assets shall be regarded as with an uncertain service life if theperiod of economic benefits brought by intangible assets cannot be foreseen, and shall not be amortized.
30.2. Estimated service life of intangible assets with limited service life
An intangible asset with a limited useful life shall be amortized evenly over the expected useful life using thestraight-line method for the original value minus the estimated net residual value and the accumulated amount ofprovision for impairment from the time it is available for use. Intangible assets with uncertain service life shall notbe amortized.
At the end of the period, review the useful life and amortization method of intangible assets with a limited usefullife. If there is any change, it will be treated as a change in accounting estimates.
30.3. Judgment basis for intangible assets with uncertain service life and procedures for reviewing theirservice lifeTo review the service life of an intangible asset with a uncertain service life, if there is evidence that the period ofeconomic benefits brought by the intangible asset is predictable, estimate its service life and amortize according tothe amortization policy for intangible assets with limited service life.
(2)Accounting policy for internal R&D expenditure
1. Specific criteria for dividing the research phase and the development phaseThe company's internal research and development project expenditures are divided into research phaseexpenditures and development phase expenditures.
Research phase: it’s the phase of planned investigations and research activities with originality to acquire andunderstand new scientific or technical knowledge, etc.
Development phase: it’s the phase to apply the research results or other knowledge to a certain plan or design soas to produce new or substantially improved materials, devices, products and other activities before commercialproduction or use.
Specific criteria for expenditure in the development phase to conform to capitalizationExpenditures in the development stage of internal research and development projects are recognized as intangibleassets when the following conditions are met simultaneously:
1. It is technically feasible to complete the intangible asset so that it can be used or sold;
2. There is an intention to complete the intangible asset and use or sell it;
3. The way that intangible assets generate economic benefits, including the ability to prove that the productsproduced by the intangible assets are marketable or the intangible assets themselves are marketable, and theintangible assets will be used internally, which can prove their usefulness;
4. There are sufficient technical, financial and other resource supports to complete the development of theintangible asset, and have the ability to use or sell the intangible asset;
5. The expenditure attributable to the development stage of the intangible asset can be reliably measured.
31. Impairment of long-term assets
Long-term equity investments, investment real estate measured by the cost model, fixed assets, construction inprogress, intangible assets with limited service life and other long-term assets that show signs of impairment onthe balance sheet date shall be tested for impairment. If the impairment test result shows that the recoverableamount of an asset is less than its carrying amount, the impairment provision will be made according to thedifference and recognized as an impairment loss. The recoverable amount of an asset is the higher of its fair valueless costs of disposal and the present value of the future cash flows expected to be derived from the asset.Provisions for assets impairment shall be made and recognized for the individual asset. If it is not possible toestimate the recoverable amount of the individual asset, the Group shall determine the recoverable amount of theasset group to which the asset belongs. The asset group is the smallest group of assets capable of generating cashflows independently.
As for the goodwill, intangible assets with an indefinite useful life and intangible assets beyond workingconditions, the impairment tests shall be carried out at least at the end of each year.
The Company conducts a goodwill impairment test. The book value of the goodwill formed by the businesscombination shall be allocated to the relevant asset group according to a reasonable method from the date of
purchase; if it is difficult to allocate to the relevant asset group, it shall be allocated to the relevant portfolio ofasset groups. The Company allocates the book value of goodwill based on the relative benefits that the relevantasset group or portfolio of asset groups can obtain from the synergies of the business combination, and conducts agoodwill impairment test on this basis.
When conducting an impairment test on a related asset group or portfolio of asset groups that contains goodwill, ifthere are signs of impairment for an asset group or portfolio of asset groups related to goodwill, the asset group orportfolio of asset groups that does not contain goodwill should be tested first, calculate the recoverable amount,and compare it with the relevant book value to confirm the corresponding impairment loss. Then conduct animpairment test on the asset group or portfolio of asset groups that contains goodwill, and compare the book valueof these related asset groups or asset group portfolios (including the book value of the allocated goodwill) with therecoverable amount, if the recoverable amount of the relevant asset group or the asset group portfolio is lowerthan its book value, the impairment loss of goodwill shall be recognized. Once the above assets impairment loss isrecognized, it will not be carried back in future accounting periods.
32. Long-term expenses to be apportioned
The Company's Long-term expenses to be apportioned refer to the expenses that have been paid, but the benefitperiod is more than one year (excluding one year). Long-term expenses to be apportioned are amortized ininstallments according to the benefit period of the expense items. If the long-term deferred expense item cannotbenefit the future accounting period, all the amortized value of the item that has not been amortized shall betransferred to the current profit and loss.
33. Contractual liabilities
Contractual liabilities refer to the Company's obligation to transfer goods or services to customers forconsideration received or receivable from customers. Contractual assets and contractual liabilities under the samecontract are presented in net amount.
34. Staff remuneration
(1) Accounting treatment of a short-term compensation
During the accounting period when employees provide services to the Company, the Company recognizes theactual short-term compensation as a liability and includes it in the current profit and loss or the cost of relatedassets.
The social insurance premiums and housing provident fund paid by the Company for employees, as well as thelabor union funds and employee education funds drawn in accordance with the regulations, of which the
corresponding employee compensation amount shall be calculated and determined according to the specifiedaccrual basis and accrual ratio during the accounting period when the employees provide services to the Company.
If employee welfare expenses are non-monetary and can be measured reliably, they shall be measured at fairvalue.
(2)Accounting treatment methods for post-employment benefits
(1) Defined contribution plans
The Company pays basic endowment insurance and unemployment insurance for employees in accordance withthe relevant regulations of the local government. During the accounting period when employees provide servicesto the Company, the amount payable is calculated based on the local payment base and proportion, recognized as aliability, and included in current profit and loss or related asset cost.
In addition to basic endowment insurance, the Company has also established an enterprise annuity paymentsystem (supplementary endowment insurance)/enterprise annuity plan in accordance with the relevant policies ofthe national enterprise annuity system. The Company pays a certain percentage of the total wages of employees tothe local social insurance agency/annuity plan, and the corresponding expenditure is included in the current profitand loss or the cost of related assets.
(2) Defined benefit plans
The Company assigns the welfare obligations arising from the defined benefit plans to the period during which theemployees provide services according to the formula determined by the expected cumulative welfare unit method,and includes them in the current profit and loss or the cost of related assets.
The deficit or surplus formed by the present value of the defined benefit plan’s obligations minus the fair value ofthe defined benefit plan’s assets is recognized as a defined benefit plan’s net liabilities or net assets. If there is asurplus in the defined benefit plan, the Company shall use the lower of the surplus of the defined benefit plan andthe asset ceiling to measure the net assets of the defined benefit plan.
All defined benefit plans obligations, including obligations expected to be paid within twelve months after the endof the annual reporting period in which employees provide services, are discounted based on the market yield ofthe national debt matching with the obligation period and currency of the defined benefit plan or the high-qualitycorporate bonds in an active market on the balance sheet date.
The service cost incurred by the defined benefit plan and the net interest of the net liabilities or net assets of thedefined benefit plan are included in the current profit and loss or the related asset cost; the changes in netliabilities or net assets resulting from the remeasurement of defined benefit plans are included in othercomprehensive income, and shall not be transferred back to profit or loss in the subsequent accounting period, and
the part that was originally included in other comprehensive income will be carried forward to undistributed profitwithin the scope of equity when the original defined benefit plan is terminated.
In the settlement of the defined benefit plan, the difference between the present value of the obligation of thedefined benefit plan and the settlement price determined on the settlement date is used to confirm the settlementgain or loss.
(3) Accounting treatment methods for dismissal benefits
When the Company cannot unilaterally withdraw the dismissal benefits provided by the termination of the laborrelationship plan or redundancy proposal, or when confirming the costs or expenses related to the reorganizationinvolving the payment of the dismissal benefits (the earlier of the two), recognize employee compensationliabilities arising from dismissal benefits and include in the current profit and loss.
(4)Accounting treatment methods for other long-term employee benefits
35. Lease liability
36. Accrual liability
36.1. Recognition criteria
The obligations with contingencies concerned as litigation, debt guarantee and contract in loss are recognized asaccrual liability when the following conditions are met simultaneously:
(1) the liability is the current liability that undertaken by the Company;
(2) the liability has the probability of result in financial benefit outflow; and
(3) the responsibility can be measured reliably for its value.
36.2. Measurement on vary accrual liability
The Company's accrual liabilities are initially measured based on the best estimate of the expenditure required toperform the relevant current obligations.
When determining the best estimate, the Company comprehensively considers factors such as risks, uncertaintiesand time value of money related to contingencies. If the time value of money has a significant impact, the bestestimate is determined after discounting the relevant future cash outflows.
The best estimates are handled separately in the following situations:
If there is a continuous range (or interval) for the required expenditure, and the probability of occurrence ofvarious results within this range is the same, the best estimate is determined according to the middle value of therange, that is, the average number of the upper and lower limits.
There is no continuous range (or interval) for the required expenditure, or although there is a continuous range, thepossibility of occurrence of various results within the range is not the same, if the contingency involves a singleitem, the best estimate shall be determined based on the amount most likely to occur; if the contingency involvesmultiple items, the best estimate shall be calculated and determined according to various possible outcomes andrelated probabilities.
If all or part of the expenditures required by the Company to settle the accrual liabilities are expected to becompensated by a third party, the compensation amount shall be separately recognized as an asset when it isbasically certain that it can be received, and the confirmed compensation amount shall not exceed the book valueof the accrual liability.
37.Share-based payment
38. Other financial instrument as preferred stock and perpetual bonds
39. Revenue
Accounting policies used in revenue recognition and measurement
General principlesThe Company recognizes the income when it has fulfilled its performance obligations in the contract, that is,when the customer has obtained control of the relevant goods or services. The performance obligation refers to thecommitment in the contract that the Group transfers clearly distinguishable goods or services to the customer.Obtaining control over related goods or services means being able to lead the use of the goods or the provision ofthe service and obtain almost all of the economic benefits.
For a performance obligation that meets one of the following conditions and is performed within a certain periodof time, the Company recognizes revenue within a period of time according to the performance of the contract: (1)The customer obtains and consumes the economic benefits brought by the Company's performance at the sametime as the Company fulfills the contract; (2) The customer can control the products under construction during theperformance of the Company; (3) The products produced during the performance of the Company haveirreplaceable uses, and the Company has the right to collect payment for the accumulated performance part thathas been completed so far during the entire contract period. Otherwise, the Company recognizes revenue at thepoint when the customer obtains control of the relevant goods or services.
Variable considerationSome of the Company’s contracts with customers include sales rebates, quantity discounts, commercial discounts,performance bonuses and claims, which forms variable consideration. The Company determines the best estimateof the variable consideration based on the expected value or the most likely amount, but the transaction price that
includes the variable consideration does not exceed the amount that the accumulated recognized revenue is mostunlikely to be materially reversed when the relevant uncertainty is eliminated.
Significant financing componentIf there is a significant financing component in the contract, the Company shall determine the transaction pricebased on the amount payable in cash when the customer assumes control of the goods or services. The differencebetween the transaction price and the contract consideration shall be amortized by the effective interest methodduring the contract period.
On the starting date of the contract, if the company expects the customer to obtain control of the product and thecustomer pays the payment within one year, the significant financing component in the contract will not beconsidered.
Non-cash considerationIf the customer pays a non-cash consideration, the Company shall determine the transaction price based on the fairvalue of the non-cash consideration. If the fair value of the non-cash consideration cannot be reasonably estimated,the Company indirectly determines the transaction price by referring to the stand-alone selling price of the goodspromised to be transferred to the customer. If the fair value of non-cash consideration changes due to reasonsother than the form of consideration, it shall be used as variable consideration for accounting treatment inaccordance with relevant regulations.
Consideration payable to customersFor the consideration payable to customers, the Company offsets the transaction price from the considerationpayable to the customer, and offsets the current revenue at the time point of the later when the relevant revenue isrecognized and the promised payment of the customer consideration, unless the consideration payable is to obtainother clearly distinguished products from the customer.
Sales with sales return clausesFor sales with a sales return clause, when the customer obtains control of the relevant product, our companyrecognizes the revenue in accordance with the amount of consideration expected to be entitled to be collected dueto transfer of goods to customers (that is, does not include the amount expected to be refunded due to salesreturns), and recognizes liabilities in accordance with the amount expected to be refunded due to sales returns. Atthe same time, according to the expected book value of the returned goods at the time of transfer, the balance afterdeducting the estimated cost of recovering the goods (including the value impairment of the returned goods) isrecognized as an asset, and the net carry-over cost of the above asset cost is deducted according to the book valueof the transferred commodity at the time of transfer. On each balance sheet date, re-estimate the future sales returnsituation, and if there is any change, it will be treated as a change in accounting estimates.
Sales with quality assurance clausesFor sales with quality assurance clauses, if the quality assurance provides a separate service in addition toensuring that the goods or services sold to the customer meet the established standards, the quality assuranceconstitutes a single performance obligation. Otherwise, the Company will make an accounting treatment forquality assurance responsibilities in accordance with the "Accounting Standards for Business Enterprises No. 13 -Contingencies".
Principal and agentThe Company judges whether the Company’s identity is the principal responsible person or an agent at the time ofthe transaction based on whether it has control over the product or service before the transfer of the product orservice to the customer. If the Company is able to control the products or services before transferring theproducts or services to the customers, the Company is the principal responsible person, and the income isrecognized based on the total consideration received or receivable; otherwise, the Company is the agent, and theincome is recognized according to the amount of commission or handling fee expected to have the right to collect,the amount is determined according to the net amount of the total consideration received or receivable afterdeducting the price payable to other related parties, or according to the established commission amount or ratio.
Sales with additional purchase options for customersFor sales with additional purchase options for customers, the Company assesses whether the option providescustomers with a major right. If an enterprise provides a major right, it shall be a single performance obligation,and the transaction price shall be allocated to the performance obligation in accordance with the relevantprovisions of the standards. When the customer exercises the purchase option in the future to obtain control of therelevant commodity, or when the option lapses, the corresponding income shall be recognized. If the stand-aloneselling price of the customer's additional purchase option cannot be directly observed, the Company shallreasonably estimate after considering all relevant information such as the difference between the discounts that thecustomer can obtain from exercising and not exercising the option, the possibility of the customer exercising theoption, etc.. Although the customer has additionally purchased the commodity option, the price at the time whenthe customer exercises the option to purchase the commodity reflects the stand-alone selling price of thesecommodities, and it should not be considered that the company has provided the customer with a major right.
Grant intellectual property licenses to customersIf an intellectual property license is granted to a customer, the Company assesses whether the intellectual propertylicense constitutes a single performance obligation in accordance with the relevant provisions of the standards,and if it constitutes a single performance obligation, it shall further determine whether it will be performed withina certain period of time or at a certain point in time.
When the following conditions are met at the same time, the relevant revenue is recognized as a performanceobligation performed within a certain period of time; otherwise, the relevant revenue is recognized as aperformance obligation performed at a certain point in time:
(1) Contract requirements or customers can reasonably expect that the enterprise will engage in activities that havea significant impact on the intellectual property rights;
(2) The activity will have a favorable or unfavorable impact on customers;
(3) The activity will not result in the transfer of a certain commodity to the customer.
After-sales repurchase transactionFor after-sales repurchase transactions, the Company distinguishes the following two situations for accountingtreatment:
(1) If there is a repurchase obligation due to the existence of a long-term arrangement with the customer or theCompany enjoys the repurchase right, the Company shall conduct the corresponding accounting treatment as alease transaction or financing transaction. Among them, if the repurchase price is lower than the original sellingprice, it shall be regarded as a lease transaction, and shall be accounted for in accordance with the relevantprovisions of the standards; if the repurchase price is not lower than the original selling price, it shall be regardedas a financing transaction, and the financial liabilities shall be confirmed when receiving the client's payment, andthe difference between the payment and the repurchase price is recognized as interest expenses during therepurchase period. If the Company fails to exercise the repurchase right upon maturity, when the repurchase rightexpires, the financial liabilities is derecognized, and the revenue is recognized at the same time.
(2) If the Company is obliged to repurchase commodities at the request of the customer, it shall assess whether thecustomer has a major economic motivation to exercise the right of claim on the commencement date of contract.If the customer has a major economic motivation to exercise the right of claim, the enterprise shall treat theafter-sale repurchase as a lease transaction or financing transaction, and conduct accounting treatment inaccordance with the provisions of present article (1); otherwise, the Company will treat it as a sales transactionwith a sales return clause, and perform accounting treatments in accordance with relevant regulations of thestandards.
Customer's unexercised rightsIf the Company receives advance payments from customers for sales of goods, it shall first recognize thepayments as liabilities, and then convert them into revenue when the relevant performance obligations are fulfilled.When the advance payment does not need to be refunded and the customer may waive all or part of its contractrights, the Company expects to be entitled to obtain the amount related to the contract rights waived by thecustomer, and the above-mentioned amount shall be recognized as revenue in proportion to the mode in which thecustomer exercises the contractual rights. Otherwise, the Company can only convert the relevant balance of the
above liabilities into income when the possibility of the customer requesting it to perform the remainingperformance obligations is extremely low.
Initial fee no need to be refundedThe initial fee collected by the Company from the customer on the commencement date of the contract (or closeto the commencement date) shall be included in the transaction price, and it shall be assessed whether the initialfee is related to the transfer of the promised goods to the customer. If the initial fee is related to the transfer of thepromised goods to the customer, and the goods constitutes a single performance obligation, the Companyrecognizes the income at the transaction price allocated to the goods when transferring the goods. If the initial feeis related to the goods promised to transfer to the customer, but the goods does not constitute a single performanceobligation, the Company will recognize the income at the transaction price allocated to the single performanceobligation when the single performance obligation containing the product is fulfilled. If the initial fee is notrelated to the goods promised to transfer to the customer, it shall be used as an advance payment for the goods tobe transferred in the future, and shall be recognized as income when the goods is transferred in the future.
If the Company has collected an initial fee that does not need to be refunded and should carry out initial activitiesto perform the contract, but these activities do not transfer the promised goods to the customer, the initial fee isrelated to the goods promised to be transferred in the future, and should be recognized as revenue whentransferring the goods in the future, and the Company does not consider these initial activities when determiningthe progress of the contract. The Company’s expenditures for the initial activities should be recognized as an assetor included in the current profit and loss in accordance with the relevant provisions of the standards.
Specific principlesThe Company recognizes the revenue when it fulfills its performance obligations in the contract, that is, when thecustomer obtains control of the relevant goods or services. Obtaining control over related goods or services meansbeing able to lead the use of the goods or the provision of the service and obtain almost all of the economicbenefits from it.
(1) Commodity sales revenue
The sales contract between the Company and the customers usually only contains the performance obligation forthe transferred goods. The Company usually recognizes revenue at a certain point in time on the basis ofcomprehensive consideration of the following factors: obtaining the current right to receive payment of the goods,the transfer of major risks and rewards in the ownership of the goods, the transfer of the legal ownership of thegoods, and the transfer of the physical asset of the goods, the customer accepts the goods.
Electricity sales revenueThe Company produces electricity through firepower and realizes sales through integration into GuangdongPower Grid. For electricity sales, the Company recognizes the realization of revenue when it has producedelectricity and obtains the grid electricity statistical table confirmed by the Electric Power Bureau.
(2) Income from rendering of labor services
The service contracts between the Company and the customers usually include performance obligations such asoperation and maintenance services, labor services, etc.The Company evaluates the contract on the start date of the contract, identifies each individual performanceobligation contained in the contract, and determines whether each individual performance obligation is performedwithin a certain period of time or at a certain point in time. If one of the following conditions is met, it is aperformance obligation performed within a certain period of time, the Company recognizes revenue within aperiod of time according to the progress of the contract:
(1) The customer obtains and consumes the economic benefits brought by the Company's performance at the sametime as the Company's performance;
(2) Customers can control the products under construction during the performance of the Company;
(3) The goods produced by the Company during the performance of the contract have irreplaceable uses, and theCompany has the right to collect payment for the cumulative performance part that has been completed so farduring the entire contract period. Otherwise, the Company recognizes revenue at the time point when the customerobtains control of the relevant goods or services.
①Recognition standards of income from labor services provided by Environment Protection Company:
The company recognizes revenue based on the obtained sludge treatment settlement statement jointly confirmedwith the transportation company, the water purification unit, and the company.
②Specific standards for revenue recognition of Engineering Company:
Debugging projects: when the debugging is successful, obtain the confirmation of successful debugging, andrecognize the income according to the contract;Operation and maintenance, management projects: monthly revenue is temporarily estimated and recognizedbased on attendance time and labor prices of attendants, and the temporary estimated revenue will be adjustedafter obtaining the monthly statement confirmed by the supplier's stamp and signature, the progress confirmationletter, and the attendance sheet.
Differences in accounting policies for revenue recognition due to the different operation models for the same typeof business
40. Government subsidy
40.1. Type
Government subsidy refers to the monetary asset and non-monetary asset that the Company obtains from thegovernment free of charge which are divided into the asset-related government subsidy and the income-relatedgovernment subsidy.
Government subsidies related to assets refer to government subsidies obtained by the Company for purchase andconstruction or to form long-term assets in other ways. Government subsidies related to income refer togovernment subsidies other than government subsidies related to assets.
40.2 Time point of recognition
If there is evidence at the end of the period that the company can meet the relevant conditions stipulated in thefinancial support policy and is expected to receive financial support funds, the government subsidy shall berecognized according to the amount receivable. In addition, government subsidies are confirmed when they areactually received.
If a government subsidy is a monetary asset, it shall be measured at the amount received or receivable. If agovernment subsidy is a non-monetary asset, it shall be measured at its fair value; if its fair value cannot beobtained reliably, it shall be measured at its nominal amount (1 yuan). Government subsidies measured at theirnominal amounts are directly included in the current profits and losses.
40.3. Accounting treatment
Government subsidies related to assets are used to offset the book value of related assets or be recognized asdeferred income, those recognized as deferred income shall be included in the current profit and loss (those relatedto the Company’s daily activities shall be included in other income; those not related to the Company’s dailyactivities shall be included in the non-operating income) in a reasonable and systematic way within the useful lifeof the relevant assets;
Government subsidies related to income that are used to compensate the Company’s related costs or losses insubsequent periods shall be recognized as deferred income, and shall be included in the current profits and losses(those related to the Company’s daily activities shall be included in other income; those not related to theCompany’s daily activities shall be included in the non-operating income) or used to offset related costs or lossesduring the period when the relevant costs or losses are recognized; those used to compensate the Company’srelated costs or losses are directly included in the current profits and losses (those related to the Company’s dailyactivities shall be included in other income; those not related to the Company’s daily activities shall be included inthe non-operating income) or used to offset related costs or losses.
The policy-related preferential loan interest discount obtained by the Company is divided into the following twosituations and is accounted for separately:
(1) The finance allocates interest subsidy to the lending bank, if the lending bank provides loans to the Companyat a preferential policy interest rate, the Company uses the amount of borrowing actually received as the entryvalue of the loan, and calculates the related borrowing costs according to the loan principal and the policypreferential interest rates.
(2) If the finance directly allocates interest subsidy funds to the Company, the Company will offset thecorresponding interest discount against the relevant borrowing costs.
41. Deferred income tax asset/ deferred income tax liability
For deductible temporary differences to recognize deferred income tax assets, they shall be within the limit of thetaxable income that is likely to be obtained in the future to deduct deductible temporary differences. For thedeductible losses and tax deductions that can be carried forward for subsequent years, they shall be within thelimit of the future taxable income that is likely to be used to deduct the deductible losses and tax deductions torecognize the corresponding deferred income tax assets.
For taxable temporary differences, except for special circumstances, deferred income tax liabilities are recognized.
Special circumstances that do not recognize deferred income tax assets or deferred income tax liabilities includeinitial recognition of goodwill; Other transactions or matters that do not affect accounting profits or taxableincome (or deductible losses) when they occur except for a business combination.
When having the statutory right to settle on a net basis, and intending to settle on a net basis or obtain assets andpay off liabilities at the same time, the current income tax assets and current income tax liabilities are presented asthe net amount after offsetting.
When having the statutory right to settle current income tax assets and current income tax liabilities on a net basis,and the deferred income tax assets and deferred income tax liabilities are related to the income tax levied by thesame tax administration department on the same taxpayer or related to different taxpayers, however, in the futureperiod during which important deferred income tax assets and liabilities are reversed, when the taxpayer involvedintends to settle the current income tax assets and liabilities on a net basis or obtain assets and repay liabilities atthe same time, the deferred income tax assets and deferred income tax liabilities are presented as the net amountafter offsetting.
42. Leasing
42.1. Accounting treatment of operating leases
(1) The lease fee paid by the company for rented assets shall be apportioned on a straight-line basis during theentire lease period without deducting the rent-free period and included in the current expenses. The initial directexpenses related to the lease transaction paid by the company shall be included in the current expenses.When the asset lessor bears the lease-related expenses that should be borne by the company, the company deductsthis part of the cost from the total rent, amortizes according to the deducted rental expenses during the lease term,
and reckons it in the current expenses.
(2) The lease fee charged by the company for lease of assets shall be apportioned on a straight-line basis duringthe entire lease period without deducting the rent-free period and recognized as lease-related income. The initialdirect expenses related to the lease transaction paid by the company shall be included in the current expenses; ifthe amount is large, it shall be capitalized and included in the current income in installments based on the samebasis as the lease-related income recognition during the entire lease period.
When the company bears the lease-related expenses that should be borne by the lessee, the company deducts thispart of the expenses from the total rental income, and distributes according to the deducted rental expenses duringthe lease term.
42.2. Accounting treatment of financial leasing
(1) Financing rent in assets: on the start date of the lease, the company takes the lower of the fair value of theleased asset and the present value of the minimum lease payment as the entry value of the leased asset, and theminimum lease payment as the entry value of of long-term payable, and the difference is regarded asunrecognized financing expenses. Refer to Note V (24) Fixed Assets for the identification basis, valuation anddepreciation methods of finance leased assets.
The company uses the effective interest method to amortize unrecognized financing expenses during the assetlease period and include them in financial expenses.
(2) Financing rent out assets: on the start date of the lease, the company recognizes the difference between thesum of receivable financing lease payments and unguaranteed residual value and its present value as unrealizedfinancing income as unrealized financing income, which is recognized as rental income during each period whenthe rent is received in the future, the company's initial direct expenses related to the lease transactions are includedin the initial measurement of the financial lease receivables, and the amount of income recognized during the leaseperiod is reduced.
43. Other major accounting policies and estimation
44. Changes of major accounting policy and accounting estimation
(1)Change of major accounting policies
□Applicable √Not applicable
(2)Change of accounting estimation
□Applicable √Not applicable
(3)Adjustment the financial statements at the beginning of the first year of implementation of new leasingstandards since 2021Not applicable
(4) Retrospective adjustment of early comparison data description when initially implemented the newleasing standards since 2021
□Applicable √Not applicable
45. Other
VI. Taxes
1. Main taxation and rates
| Taxation items | Taxation basis | Tax rate |
| VAT | Calculate the output tax based on the sales of goods and taxable service income calculated according to the tax law, after deducting the input tax allowable for deduction in the current period, the difference is the VAT payable. | 13%, 9%, 6% |
| City maintenance tax | According to the actual payment of VAT and consumption tax | 7%, 5% |
| Enterprise income tax | According to the taxable income amount | 25%, 17%, 16.5%, 15% |
| Education surtax | According to the actual payment of VAT and consumption tax | 3% |
| Local education surtax | According to the actual payment of VAT and consumption tax | 2% |
| Property tax | The tax rate shall be calculated and paid at 1.2% of the remaining value of the original value of the property after a deduction of 30% if it is calculated according to the residual value of the property, the tax rate shall be calculated and paid at 12% of the property rental income if it is calculated according to the property rental income. | |
| Land-use tax of town | 2 Yuan ~ 8Yuan per square meter of the actual occupied are for the industrial land |
As for the taxpaying bodies have different enterprise income tax rate, explanation as:
located in Nanshan District, ShenzhenCity; 1Yuan per square meter of the actualoccupied are for the industrial land locatedin Zhongshan City
Taxpaying body
| Taxpaying body | Rate of income tax |
| The Company | 25% |
| New Power Company | 25% |
| Engineering Company | 15% |
| Shenzhen Server | 25% |
| Environment Protection Company | 15% |
| Zhongshan Electric Power | 25% |
| Singapore Company | 17% |
| Shen Storage | 25% |
| Syndisome (Hong Kong) | 16.5% |
2. Taxes preferential
(1)Income tax preferential policies:
①According to the announcement (No. 60 of 2019) of the Ministry of Finance, the State Administration ofTaxation, the National Development and Reform Commission, and the Ministry of Ecological Environment, andthe Announcement on Issues Concerning Income Tax Policies for Third-Party Enterprises Engaged in PollutionPrevention and Control of the Ministry of Finance and the State Administration of Taxation, from January 1, 2019to December 31, 2021, the corporate income tax will be levied at a reduced rate of 15% on eligible third-partyenterprises engaged in pollution prevention and control. The Company’s subordinate Environment ProtectionCompany enjoys the above preferential policy and levies corporate income tax at a rate of 15%
② According to the provisions of Article 28 (2) of the Enterprise Income Tax Law of the People's Republic ofChina, the enterprise income tax on important high- and new-tech enterprises that are necessary to be supportedby the state shall be levied at the reduced tax rate of 15%. The Company's subsidiaries environmental protectioncompany and engineering company enjoy the above-mentioned preferential policies, and the enterprise incometaxes are levied at the rate of 15%.
(2) Value-added tax preferential policies:
| Tax | Name of the company | Relevant regulation and policies basis | Approval institution | Approval documents | Exemption range | Period of validity |
| VAT | Environment Protection Company | Notice on "contents of products with comprehensive utilization of resources and value-added tax privilege of labor service" (CS No. [2015] 78) | Shenzhen Provincial Office, SAT (Qianhai SAT) | SQSST[2018]No.: 18302 | Resource comprehensive utilization of VAT refund | 31 Aug. 2018 to 31 July 2022 |
3. Other
VII. Annotation of the items in consolidate financial statement
1. Monetary fund
In RMB
| Item | Ending balance | Opening balance |
| Cash on hand | 66,399.71 | 101,163.11 |
| Bank savings | 436,403,838.92 | 397,000,109.10 |
| Other monetary fund | 15,353,018.84 | 367,500,000.00 |
| Total | 451,823,257.47 | 764,601,272.21 |
| Including: total amount saving aboard | 51,329,868.08 | 50,810,349.72 |
Other notes
2. Trading financial assets
3. Derivative financial assets
4. Notes receivable
5. Accounts receivable
(1) Classification of account receivable
In RMB
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion | Amount | Accrual proportion | Amount | Proportion | Amount | Accrual proportion | |||
| Account receivable | 5,558,67 | 5.46% | 5,558,67 | 100.00% | 5,558,673 | 6.12% | 5,558,673 | 100.00% | ||
| with bad debt provision accrual on a single basis | 3.67 | 3.67 | .67 | .67 | ||||||
| Including: | ||||||||||
| Account receivable with bad debt provision accrual on portfolio | 96,253,747.38 | 94.54% | 96,253,747.38 | 85,293,052.88 | 93.88% | 85,293,052.88 | ||||
| Including: | ||||||||||
| Total | 101,812,421.05 | 100.00% | 5,558,673.67 | 5.46% | 96,253,747.38 | 90,851,726.55 | 100.00% | 5,558,673.67 | 6.12% | 85,293,052.88 |
Bad debt provision accrual on single basis:
In RMB
| Name | Ending balance | |||
| Book balance | Bad debt provision | Accrual proportion | Accrual causes | |
| Shenzhen Petrochemical Products Bonded Trading Co., Ltd. | 3,474,613.06 | 3,474,613.06 | 100.00% | Uncollectible in excepted |
| Zhongji Construction Development Co., Ltd. | 1,137,145.51 | 1,137,145.51 | 100.00% | Uncollectible in excepted |
| Shenzhen Fuhuade Power Co., Ltd | 800,000.00 | 800,000.00 | 100.00% | Uncollectible in excepted |
| Other | 146,915.10 | 146,915.10 | 100.00% | Uncollectible in excepted |
| Total | 5,558,673.67 | 5,558,673.67 | -- | -- |
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, pleaserefer to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √ Not applicable
By account age
In RMB
| Account age | Ending balance |
| Within 1 year (including 1 year) | 96,250,858.38 |
| Over 3 years | 5,561,562.67 |
| Total | 101,812,421.05 |
(2) Bad debt provision accrual collected or switch back
Bad debt provision accrual in the period:
In RMB
| Category | Opening balance | Amount changed in the period | Ending balance | |||
| Accrual | Collected or reversal | Written-off | Other | |||
| Accounts receivable with single provision for bad debts | 5,558,673.67 | 5,558,673.67 | ||||
| Total | 5,558,673.67 | 5,558,673.67 | ||||
(3) Account receivable actual charge off in the Period
(4) Top 5 receivables at ending balance by arrears party
(5) Account receivable derecognition due to financial assets transfer
(6) Assets and liabilities resulted by account receivable transfer and continues involvementOther notes:
Total period-end balance of top five receivables by arrears party amounting to 96,250,,866.91 Yuan, takes 94.54 percent of the totalaccount receivable at period-end, bad debt provision accrual correspondingly at period-end amounting as 0.00 Yuan
6. Receivable financing
7. Account paid in advance
(1) Account age of account paid in advance
In RMB
| Account age | Ending balance | Opening balance | ||
| Amount | Proportion | Amount | Proportion | |
| Within 1 year | 78,498,830.19 | 99.35% | 22,552,426.03 | 76.33% |
| 1-2 years | 417,908.00 | 0.53% | 6,883,175.38 | 23.30% |
| 2-3 years | 15,600.00 | 0.05% | ||
| Over 3 years | 93,586.94 | 0.12% | 93,586.94 | 0.32% |
| Total | 79,010,325.13 | -- | 29,544,788.35 | -- |
Explanation on reasons of failure to settle on important advance payment with age over one year:
(2) Top 5 account paid in advance at ending balance by prepayment objectTotal year-end balance of top five account paid in advance by prepayment object amounted to 77,211,761.95Yuan, takes 97.72 percent of the total advance payment at year-end.
8. Other account receivables
In RMB
| Item | Ending balance | Opening balance |
| Other account receivables | 30,330,188.34 | 31,027,754.36 |
| Total | 30,330,188.34 | 31,027,754.36 |
(1) Interest receivable
(2) Dividend receivable
(3) Other account receivables
1) Other account receivables classification by nature
In RMB
| Nature | Ending book balance | Opening book balance |
| Deposit and security deposit | 8,383,734.57 | 5,130,967.25 |
| Reserve fund | 1,355,335.06 | 566,951.40 |
| Withholding payment | 6,837,743.80 | 9,151,898.54 |
| Intercourse funds | 17,871,626.70 | 18,066,774.22 |
| Accounts receivable of Huidong Server | 16,175,914.15 | 21,374,572.81 |
| Other | 11,746,221.67 | 8,776,977.75 |
| Less: Bad debt provision | -32,040,387.61 | -32,040,387.61 |
| Total | 30,330,188.34 | 31,027,754.36 |
2) Accrual of bad debt provision
In RMB
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance on Jan. 1, 2021 | 32,040,387.61 | 32,040,387.61 | ||
| Balance of Jan. 1, 2021 in the period | —— | —— | —— | —— |
| Balance on Jun. 30, 2021 | 32,040,387.61 | 32,040,387.61 |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √ Not applicable
By account age
In RMB
| Account age | Ending balance |
| Within 1 year (including 1 year) | 5,496,216.53 |
| 1-2 years | 3,464,750.17 |
| 2-3 years | 5,289,595.47 |
| Over 3 years | 48,120,013.78 |
| Total | 62,370,575.95 |
3) Bad debt provision accrual collected or switch back
4) Other receivables actually written-off during the reporting period
5) Top 5 other receivables at ending balance by arrears party
6) Other account receivables related to Government subsidy
7) Other receivable for termination of confirmation due to the transfer of financial assets
8) The amount of assets and liabilities that are transferred other receivable and continued to be involvedThe total amount of the top five other receivables at the end of the period aggregated by the owing party was46,715,920.52 yuan, accounting for 74.90% of the total balance of other receivables at the end of the period.
Other notes:
9. Inventory
Does the company need to comply with the disclosure requirements of the real estate industryNo
(1) Category of inventory
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Inventory depreciation reserve or provision for impairment of contract performance | Book value | Book balance | Inventory depreciation reserve or provision for impairment of contract performance | Book value | |
| costs | costs | |||||
| Raw materials | 150,615,654.32 | 49,407,585.05 | 101,208,069.27 | 149,653,114.11 | 49,407,585.05 | 100,245,529.06 |
| Total | 150,615,654.32 | 49,407,585.05 | 101,208,069.27 | 149,653,114.11 | 49,407,585.05 | 100,245,529.06 |
(2) Inventory depreciation reserve or provision for impairment of contract performance costs
In RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance | ||
| Accrual | Other | Switch back or write-off | Other | |||
| Raw materials | 49,407,585.05 | 49,407,585.05 | ||||
| Total | 49,407,585.05 | 49,407,585.05 | ||||
10. Contractual assets
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Operation and maintenance project settlement accounts receivable | 7,229,600.00 | 7,229,600.00 | ||||
| Total | 7,229,600.00 | 7,229,600.00 | ||||
If the provision for bad debts of note receivable is made in accordance with the general model of expected credit losses, please refer tothe disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √ Not applicable
11. Assets held for sale
12. Non-current assets due within one year
13. Other current assets
In RMB
| Item | Ending balance | Opening balance |
| VAT input tax deductible | 323,755,441.93 | 332,071,261.59 |
| Income tax paid in advance | 6,583,089.98 | 6,583,089.98 |
| Financial products | 892,007,372.24 | 575,655,558.24 |
| Accrual interest of time deposit | 464,507.99 | 2,918,334.73 |
| Other | 130,000.00 | 60,000.00 |
| Total | 1,222,940,412.14 | 917,288,244.54 |
Other notes:
14. Debt investment
15. Other debt investment
16. Long-term receivables
17. Long-term equity investment
In RMB
| The invested entity | Opening balance (book value) | Current changes (+, -) | Ending balance (book value) | Ending balance of depreciation reserves | |||||||
| Additional investment | Capital reduction | Investment gain/loss recognized under equity | Other comprehensive income adjustment | Other equity change | Cash dividend or profit announced to issued | Impairment accrual | Other | ||||
| I. Joint venture | |||||||||||
| Huidong Server Harbor Comprehensive Development Company | 8,893,408.86 | -1,148,715.33 | 7,744,693.53 | ||||||||
| Subtotal | 8,893,408.86 | -1,148,715.33 | 7,744,693.53 | ||||||||
| II. Associated enterprise | |||||||||||
| Total | 8,893,408.86 | -1,148,715.33 | 7,744,693.53 | ||||||||
Other notes
18. Other equity instrument investment
In RMB
| Item | Ending balance | Opening balance |
| CPI Jiangxi Nuclear Power Company | 60,615,000.00 | 60,615,000.00 |
| Nanjing Zhongsheng Holding Co., Ltd. | 140,000,000.00 | 21,000,000.00 |
| Shenzhen Petrochemical Oil Bonded Trade Co., Ltd. - investment cost | 2,500,000.00 | 2,500,000.00 |
| Shenzhen Petrochemical Oil Bonded Trade Co., Ltd. - change in fair value | -2,500,000.00 | -2,500,000.00 |
| Total | 200,615,000.00 | 81,615,000.00 |
Disclosure of the non-trading equity instrument investment item by item
In RMB
| Item | Dividend income recognized | Accumulated gain | Accumulated loss | Retained earnings transferred from other comprehensive income | Designated as the investment measured at fair value and whose changes reckoned into other comprehensive income (explain reasons) | Reasons of retained earnings transferred from other comprehensive income |
| Jiangxi Nuclear Power Co., Ltd. | Intents to holding for a long-term | |||||
| Nanjing Zhongsheng Holding Co., Ltd. | Intents to holding for a long-term | |||||
| Shenzhen Petrochemical Oil Bonded Trade Co., Ltd. | -2,500,000.00 | Intents to holding for a long-term |
Other notes:
19. Other non-current financial assets
20. Investment real estate
(1) Investment real estate measured by cost
√ Applicable □ Not applicable
In RMB
| Item | House and Building | Land use right | Construction in progress | Total |
| I. Original book value | ||||
| 1.Opening balance | 9,708,014.96 | 9,708,014.96 | ||
| 2.Current increased | ||||
| (1) Outsourcing | ||||
| (2) Inventory\fixed assets\construction in process transfer-in |
| (3) Increased by combination | ||||
| 3.Current decreased | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4.Ending balance | 9,708,014.96 | 9,708,014.96 | ||
| II. Accumulated depreciation and accumulated amortization | ||||
| 1.Opening balance | 7,502,825.56 | 7,502,825.56 | ||
| 2.Current increased | 98,068.80 | 98,068.80 | ||
| (1) Accrual or amortization | 98,068.80 | 98,068.80 | ||
| 3.Current decreased | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4.Ending balance | 7,600,894.36 | 7,600,894.36 | ||
| III. Depreciation reserves | ||||
| 1.Opening balance | ||||
| 2.Current increased | ||||
| (1) Accrual | ||||
| 3.Current decreased | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4.Ending balance | ||||
| 4.Ending balance | ||||
| IV. Book value | 2,107,120.60 | 2,107,120.60 | ||
| 1.Ending Book value | 2,205,189.40 | 2,205,189.40 |
(2) Investment real estate measured at fair value
□ Applicable √ Not applicable
(3) Investment real estate without property certification held
21. Fixed assets
In RMB
| Item | Ending balance | Opening balance |
| Fixed assets | 903,855,214.06 | 925,745,208.55 |
| Total | 903,855,214.06 | 925,745,208.55 |
(1) Fixed assets
In RMB
| Item | House and Building | Machinery equipment | Means of transport | Other | Total |
| I. Original book value: | |||||
| 1.Opening balance | 426,009,822.97 | 3,159,342,280.68 | 16,757,800.53 | 58,485,287.75 | 3,660,595,191.93 |
| 2.Current increased | 1,011,427.00 | 2,702,694.11 | 3,714,121.11 | ||
| (1) Purchase | 10,442.48 | 1,212,417.43 | 1,222,859.91 | ||
| (2) Construction in progress transfer-in | 1,000,984.52 | 1,490,276.68 | 2,491,261.20 | ||
| (3) Increased by combination | |||||
| 3.Current decreased | 6,100,000.00 | 499,000.00 | 6,599,000.00 | ||
| (1) Disposal or scrapping | 6,100,000.00 | 499,000.00 | 6,599,000.00 | ||
| 4.Ending balance | 426,009,822.97 | 3,154,253,707.68 | 16,258,800.53 | 61,187,981.86 | 3,657,710,313.04 |
| II. Accumulated depreciation | |||||
| 1.Opening balance | 274,467,339.25 | 2,285,724,572.18 | 8,778,143.96 | 44,182,864.81 | 2,613,152,920.20 |
| 2.Current increased | 5,588,517.65 | 17,172,137.63 | 867,140.92 | 1,316,419.40 | 24,944,215.60 |
| (1) Accrual | 5,588,517.65 | 17,172,137.63 | 867,140.92 | 1,316,419.40 | 24,944,215.60 |
| 3.Current decreased | 5,490,000.00 | 449,100.00 | 5,939,100.00 | ||
| (1) Disposal or scrapping | 5,490,000.00 | 449,100.00 | 5,939,100.00 | ||
| 4.Ending balance | 280,055,856.90 | 2,297,406,709.81 | 9,196,184.88 | 45,499,284.21 | 2,632,158,035.80 |
| III. Depreciation reserves | |||||
| 1.Opening balance | 9,800,239.30 | 111,896,823.88 | 121,697,063.18 | ||
| 2.Current increased | |||||
| (1) Accrual | |||||
| 3.Current decreased | |||||
| (1) Disposal or scrapping | |||||
| 4.Ending balance | 9,800,239.30 | 111,896,823.88 | 121,697,063.18 | ||
| IV. Book value | |||||
| 1.Ending Book value | 136,153,726.77 | 744,950,173.99 | 7,062,615.65 | 15,688,697.65 | 903,855,214.06 |
| 2.Opening Book value | 141,742,244.42 | 761,720,884.62 | 7,979,656.57 | 14,302,422.94 | 925,745,208.55 |
(2) Temporarily idle fixed assets
In RMB
| Item | Original book value | Accumulated depreciation | Provision for impairment | Book value | Note |
| Housing & buildings | 127,893,412.10 | 98,659,265.99 | 13,948,439.04 | 15,285,707.07 | |
| Machinery equipment | 568,728,189.68 | 482,646,162.93 | 50,065,844.45 | 36,016,182.30 | |
| Means of transport | 256,300.00 | 230,670.00 | 0.00 | 25,630.00 |
(3) Fixed assets acquired by operating lease
(4) Fixed assets without property certification held
In RMB
| Item | Book value | Reasons for failing to complete the property rights certificate |
| Circulating Water Pump House | 1,213,756.28 | Procedures uncompleted |
| Cooling Tower | 673,259.25 | Procedures uncompleted |
| Complex Building | 443,246.19 | Procedures uncompleted |
| Comprehensive building canteen | 256,846.77 | Procedures uncompleted |
| Chemical water treatment workshop | 232,960.00 | Procedures uncompleted |
| Main entrance mail room | 154,979.21 | Procedures uncompleted |
22. Construction in progress
In RMB
| Item | Ending balance | Opening balance |
| Construction in progress | 85,544,475.11 | 42,782,712.98 |
| Total | 85,544,475.11 | 42,782,712.98 |
(1) Construction in progress
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Cogeneration | 60,112,152.46 | 22,273,910.43 | 37,838,242.03 | 60,112,152.46 | 22,273,910.43 | 37,838,242.03 |
| Oil to Gas Works | 13,230,574.53 | 13,230,574.53 | 13,230,574.53 | 13,230,574.53 | ||
| Technical innovation | 47,706,233.08 | 47,706,233.08 | 4,944,470.95 | 4,944,470.95 | ||
| Total | 121,048,960.07 | 35,504,484.96 | 85,544,475.11 | 78,287,197.94 | 35,504,484.96 | 42,782,712.98 |
(2) Changes of major projects under construction
In RMB
| Item | Budget | Opening | Current | Fixed | Other | Ending | Proporti | Progress | Accumul | including | Interest | Source of |
| balance | increased | assets transfer-in in the Period | decreased in the Period | balance | on of project investment in budget | ated amount of interest capitalization | : interest capitalized amount of the year | capitalization rate of the year | funds | |||
| Cogeneration | 60,000,000.00 | 60,112,152.46 | 60,112,152.46 | 100.19% | 100.00 | 6,476,185.46 | Other | |||||
| Oil to Gas Works | 74,400,000.00 | 13,230,574.53 | 13,230,574.53 | 63.76% | 63.76 | Other | ||||||
| Technical innovation | 67,735,200.00 | 4,944,470.95 | 45,253,023.33 | 2,491,261.20 | 47,706,233.08 | 74.11% | 74.11 | Other | ||||
| Total | 202,135,200.00 | 78,287,197.94 | 45,253,023.33 | 2,491,261.20 | 121,048,960.07 | -- | -- | 6,476,185.46 | -- |
23. Productive biological assets
24. Oil and gas assets
25. Right-of-use assets
26. Intangible assets
(1) Intangible assets
In RMB
| Item | Land use right | Patent | Non-patent technology | Software | Total |
| I. Original book value | |||||
| 1.Opening balance | 60,813,994.76 | 3,791,219.34 | 64,605,214.10 | ||
| 2.Current increased | 103,773.59 | 103,773.59 | |||
| (1) Purchase | 103,773.59 | 103,773.59 | |||
| (2) Internal R&D | |||||
| (3) Increased |
| by combination | |||||
| 3.Current decreased | |||||
| (1) Disposal | |||||
| 4.Ending balance | 60,813,994.76 | 103,773.59 | 3,791,219.34 | 64,708,987.69 | |
| II. Accumulated amortization | |||||
| 1.Opening balance | 40,020,625.95 | 3,458,977.91 | 43,479,603.86 | ||
| 2.Current increased | 311,314.80 | 1,729.58 | 107,150.04 | 420,194.42 | |
| (1) Disposal | 311,314.80 | 1,729.58 | 107,150.04 | 420,194.42 | |
| 3.Current decreased | |||||
| (1) Disposal | |||||
| 4.Ending balance | 40,331,940.75 | 1,729.58 | 3,566,127.95 | 43,899,798.28 | |
| III. Depreciation reserves | |||||
| 1.Opening balance | |||||
| 2.Current increased | |||||
| (1) Disposal | |||||
| 3.Current decreased | |||||
| (1) Disposal | |||||
| 4.Ending balance | |||||
| IV. Book value |
| 1.Ending Book value | 20,482,054.01 | 102,044.01 | 225,091.39 | 20,809,189.41 | |
| 2.Opening Book value | 20,793,368.81 | 332,241.43 | 21,125,610.24 |
(2) Land use right without property certification held
In RMB
| Item | Book value | Reasons for failing to complete the property rights certificate |
| Land use right of the wharf and pipe gallery | 509,942.53 | Property rights certificate is undergoing |
27. Development expenditure
28. Goodwill
29. Long-term expenses to be apportioned
In RMB
| Item | Opening balance | Current increased | Amortized in the Period | Other decrease | Ending balance |
| Exhibition hall decoration amount | 1,027,508.94 | 853,344.24 | 169,852.77 | 1,711,000.41 | |
| Total | 1,027,508.94 | 853,344.24 | 169,852.77 | 1,711,000.41 |
30. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets that are not offset
In RMB
| Item | Ending balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Bad debt provision for account receivable | 5,628,573.77 | 1,400,153.44 | 5,628,573.77 | 1,400,153.44 |
| Bad debt provision for other account receivable | 723,585.00 | 180,896.25 | 723,585.00 | 180,896.25 |
| Changes in fair value of | 2,500,000.00 | 625,000.00 | 2,500,000.00 | 625,000.00 |
| other equity instrument investments | ||||
| Total | 8,852,158.77 | 2,206,049.69 | 8,852,158.77 | 2,206,049.69 |
(2) Deferred income tax liabilities that are not offset
(3) Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
| Item | Trade-off between the deferred income tax assets and liabilities | Ending balance of deferred income tax assets or liabilities after off-set | Trade-off between the deferred income tax assets and liabilities at period-begin | Opening balance of deferred income tax assets or liabilities after off-set |
| Deferred income tax assets | 2,206,049.69 | 2,206,049.69 |
31. Other non-current assets
32. Short-term loans
(1) Category of short-term loans
In RMB
| Item | Ending balance | Opening balance |
| Credit loan | 458,822,740.80 | 672,033,285.00 |
| Accrued interest | 3,495,573.48 | |
| Total | 458,822,740.80 | 675,528,858.48 |
33. Trading financial liabilities
34. Derivative financial liabilities
35. Note payable
In RMB
| Category | Ending balance | Opening balance |
| Business acceptance bill | 300,000,000.00 | |
| Bank acceptance bill | 169,635,315.93 | 30,467,345.48 |
| Total | 469,635,315.93 | 30,467,345.48 |
36. Account payable
(1) Account payable
In RMB
| Item | Ending balance | Opening balance |
| Materials | 2,520,453.67 | 1,485,870.91 |
| Electricity | 1,354,573.38 | 3,198,432.35 |
| Labor | 5,642,780.00 | 4,622,000.00 |
| Total | 9,517,807.05 | 9,306,303.26 |
37. Accounts received in advance
38. Contractual liability
39. Wage payable
(1) Wage payable
In RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| I. Short-term compensation | 68,988,399.03 | 51,318,181.42 | 77,231,976.90 | 43,074,603.55 |
| II. Post-employment welfare- defined contribution plans | 438,504.94 | 8,861,868.49 | 7,623,911.77 | 1,676,461.66 |
| Total | 69,426,903.97 | 60,180,049.91 | 84,855,888.67 | 44,751,065.21 |
(2) Short-term compensation
In RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| 1. Wages, bonuses, allowances and subsidies | 68,484,174.37 | 41,775,274.95 | 67,906,207.09 | 42,353,242.23 |
| 2. Welfare for workers and staff | 129,361.00 | 252,134.00 | 355,695.00 | 25,800.00 |
| 3. Social insurance | 2,566,811.36 | 2,467,920.07 | 98,891.29 | |
| Including: Medical insurance | 2,448,849.04 | 2,360,019.90 | 88,829.14 | |
| Work injury | 64,954.07 | 62,566.52 | 2,387.55 |
| insurance | ||||
| Maternity insurance | 53,008.25 | 45,333.65 | 7,674.60 | |
| 4. Housing accumulation fund | 5,809,690.74 | 5,605,033.86 | 204,656.88 | |
| 5. Labor union expenditure and personnel education expense | 374,863.66 | 914,270.37 | 897,120.88 | 392,013.15 |
| Total | 68,988,399.03 | 51,318,181.42 | 77,231,976.90 | 43,074,603.55 |
(3) Defined contribution plans
In RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| 1. Basic endowment insurance | 6,156,375.17 | 5,972,699.51 | 183,675.66 | |
| 2. Unemployment insurance | 48,593.34 | 47,589.26 | 1,004.08 | |
| 3. Enterprise annuity | 438,504.94 | 2,656,899.98 | 1,603,623.00 | 1,491,781.92 |
| Total | 438,504.94 | 8,861,868.49 | 7,623,911.77 | 1,676,461.66 |
40. Taxes payable
In RMB
| Item | Ending balance | Opening balance |
| Value-added tax | 5,098,496.42 | 3,086,053.57 |
| Corporation income tax | 621,938.34 | |
| Individual income tax | 1,728,267.21 | 2,726,195.98 |
| City maintaining & construction tax | 67,704.69 | 44,879.53 |
| Environmental tax | 32,646.98 | |
| Property tax | 1,320,268.04 | 996,166.86 |
| Stamp duty | 33,443.10 | |
| Local education surcharge | 40,004.70 | 16,824.46 |
| Educational surtax | 26,685.91 | 25,236.71 |
| Other | 97,966.60 | 42,872.73 |
| Total | 8,379,393.57 | 7,626,258.26 |
Other notes:
41. Other account payable
In RMB
| Item | Ending balance | Opening balance |
| Interest payable | 432,488.68 | |
| Other accounts payable | 22,428,183.55 | 27,020,944.95 |
| Total | 22,860,672.23 | 27,020,944.95 |
(1) Interest payable
In RMB
| Item | Ending balance | Opening balance |
| Interest payable on short-term loans | 432,488.68 | |
| Total | 432,488.68 |
(2) Dividend payable
(3) Other account payable
1) Classification of other accounts payable according to nature of account
In RMB
| Item | Ending balance | Opening balance |
| Engineering funds | 9,371,599.76 | 7,759,695.06 |
| Quality assurance | 4,573,766.57 | 6,675,270.29 |
| Accrued expenses | 2,117,718.64 | 6,625,316.75 |
| Material payment | 211,494.74 | 3,362,487.65 |
| Other | 6,153,603.84 | 2,598,175.20 |
| Total | 22,428,183.55 | 27,020,944.95 |
2) Significant other payable with over one year age
The ending balance of the top five other payable aggregated by the arrears party is 5,296,309.50 yuan, accountingfor 23.17% of the total ending balance of other payable.
42. Liability held for sale
43. Non-current liabilities due within one year
44. Other current liabilities
45. Long-term loans
46. Bonds payable
47. Lease liability
48. Long-term account payable
49. Long-term wages payable
50. Accrual liability
In RMB
| Item | Ending balance | Opening balance | Cause of formation |
| Pending litigation | 14,573,508.28 | 19,923,508.28 | |
| Total | 14,573,508.28 | 19,923,508.28 | -- |
Note: On 29 November 2013, Shenzhen Server and Jiahua Building Products (Shenzhen) Co., Ltd. (Jiahua Building) signed asupplementary term aiming at equity transfer over equity attribution and division of Yapojiao Dock, which belongs to ShenzhenServer, Huidong Server, and Huidong Nianshan Town Government as well as its subordinate Nianshan Group. In order to solve thisremaining historic problem, Shenzhen Server saved 12,500,000.00 yuan in condominium deposit account as guarantee. In addition,Server pledged its 20% of equity holding from Huidong Server to Jiahua Architecture with pledge duration of 2 years. The amount ofcollateral on loans could not exceed 15,000,000.00 yuan. Relevant losses with the event concerned predicted amounting to 27,500,000.00 yuan by the Group, the balance on June 30, 2021 was 14,573,508.28 yuan
51. Deferred income
In RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance | Cause of formation |
| Government grand | 93,780,657.93 | 3,193,457.06 | 90,587,200.87 | ||
| Total | 93,780,657.93 | 3,193,457.06 | 90,587,200.87 | -- |
Item with Government subsidy involved:
In RMB
| Item | Opening balance | New grants in the Period | Amount reckoned in non-operation revenue | Amount reckoned into other income in the period | Cost reduction in the period | Other changes | Ending balance | Assets related/Income related |
| Government subsidies for low-nitrogen equipment renovation | 24,648,454.68 | 286,402.74 | 24,362,051.94 | Assets related | ||||
| Government subsidies for information construction projects | 25,490.12 | 25,490.12 | Assets related | |||||
| Subsidies for the Motor Energy Efficiency Improvement Funding Scheme | 367,200.00 | 17,280.00 | 349,920.00 | Assets related | ||||
| Support fund of recycling economy for sludge drying | 6,804,271.03 | 323,501.46 | 6,480,769.57 | Assets related | ||||
| Treasury subsidies for sludge drying | 2,571,250.00 | 127,500.00 | 2,443,750.00 | Assets related | ||||
| Special funds for energy conservation and emission reduction | 570,185.98 | 47,373.66 | 522,812.32 | Assets related | ||||
| Subsidy for quality promotion of the air environment in Shenzhen | 58,793,806.12 | 2,365,909.08 | 56,427,897.04 | Assets related |
52. Other non-current liabilities
In RMB
| Item | Ending balance | Opening balance |
| Amounts payable to other shareholders | 50,110.86 | 7,627.86 |
| Total | 50,110.86 | 7,627.86 |
53. Share capital
In RMB
| Opening balance | Change during the period (+, -) | Ending balance | |||||
| New shares issued | Bonus share | Shares transferred from capital reserve | Other | Subtotal | |||
| Total shares | 602,762,596.00 | 602,762,596.00 | |||||
54. Other equity instrument
55. Capital public reserve
In RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| Capital premium (Share capital premium) | 233,035,439.62 | 233,035,439.62 | ||
| Other Capital reserve | 129,735,482.48 | 129,735,482.48 | ||
| Total | 362,770,922.10 | 362,770,922.10 |
56. Treasury stock
57. Other comprehensive income
In RMB
| Item | Opening balance | Current period | Ending balance | |||||
| Account before income tax in the year | Less: written in other comprehensive income in previous period and carried forward to gains and losses in current period | Less: written in other comprehensive income in previous period and carried forward to retained earnings in | Less: income tax expense | Belong to parent company after tax | Belong to minority shareholders after tax | |||
| current period | ||||||||
| 1. Other comprehensive income items which will not be reclassified subsequently to profit of loss | -2,500,000.00 | -2,500,000.00 | ||||||
| Change of fair value of investment in other equity instrument | -2,500,000.00 | -2,500,000.00 | ||||||
| Total other comprehensive income | -2,500,000.00 | -2,500,000.00 |
58. Reasonable reserve
59. Surplus public reserve
In RMB
| Item | Opening balance | Current increased | Current decreased | Ending balance |
| Statutory surplus reserves | 310,158,957.87 | 310,158,957.87 | ||
| Discretionary surplus reserve | 22,749,439.73 | 22,749,439.73 | ||
| Total | 332,908,397.60 | 332,908,397.60 |
60. Retained profit
In RMB
| Item | Current period | Last period |
| Retained profits at the end of last period before adjustment | 758,799,931.94 | 706,830,892.54 |
| Retained profits at the beginning of the period after adjustment | 758,799,931.94 | 706,830,892.54 |
| Add: The net profits belong to owners of patent company of this period | 1,456,269.68 | 52,040,498.42 |
| Common dividend payable | 12,055,251.92 | |
| Retained profit at period-end | 760,256,201.62 | 746,816,139.04 |
61. Operating income and cost
In RMB
| Item | Current period | Last Period | ||
| Income | Cost | Income | Cost | |
| Main operating | 376,034,393.36 | 351,092,415.61 | 516,766,342.40 | 453,011,367.34 |
| Other business | 568,000.02 | 117,808.30 | 1,384,263.81 | 98,068.80 |
| Total | 376,602,393.38 | 351,210,223.91 | 518,150,606.21 | 453,109,436.14 |
Information related to performance obligations:
Not applicable
62. Operating tax and extras
In RMB
| Item | Current period | Last Period |
| City maintaining & construction tax | 472,057.07 | 1,383,140.70 |
| Educational surtax | 250,372.97 | 994,801.55 |
| Property tax | 324,101.18 | 1,208,396.49 |
| Land use tax | 150,379.56 | 528,926.56 |
| Stamp duty | 266,520.80 | 249,088.14 |
| Environmental protection tax | 15,666.44 | 52,684.43 |
| Local education surcharge | 166,915.38 | 2,070.82 |
| Total | 1,646,013.40 | 4,419,108.69 |
63. Sales expenses
In RMB
| Item | Current period | Last Period |
| Sludge treatment costs | 192,016.41 | 1,759,061.64 |
| Salary, welfare and social insurance | 349,797.37 | 483,096.28 |
| Communication expenses | 6,500.00 | 3,600.00 |
| Social expenses | 47,432.90 | 102,828.00 |
| Fleet cost | 7,000.00 | 14,862.00 |
| Inspection charges | 2,358.49 | 8,254.72 |
| Labor insurance fee | 9,137.32 | 12,146.33 |
| Rental fee | 3,600.00 | 14,400.00 |
| Property insurance | 48,684.42 | 55,981.53 |
| Agency engagement fee | 6,152.26 | 49,056.60 |
| Other | 23,757.63 | 24,116.56 |
| Total | 696,436.80 | 2,527,403.66 |
64. Administrative expenses
In RMB
| Item | Current period | Last Period |
| Wages | 16,794,177.76 | 22,642,057.64 |
| Rental fee | 3,313,168.39 | 3,190,390.04 |
| Social expenses | 1,256,510.86 | 1,215,245.44 |
| Intermediary agency fee | 674,252.82 | 769,240.68 |
| Fleet cost | 1,627,388.66 | 1,544,894.98 |
| Board fee | 549,111.22 | 643,383.04 |
| Depreciation | 3,487,075.49 | 3,219,527.40 |
| Amortization of intangible assets | 112,174.94 | 438,195.11 |
| Environmental protection fee | 70,012.09 | 112,454.45 |
| Food expenses | 1,538,651.55 | 1,683,299.91 |
| Corporate culture fee | 145,089.00 | 466,986.30 |
| Property management fees | 485,464.34 | 476,391.32 |
| Office expenses | 169,218.09 | 451,606.20 |
| Communication fee | 551,184.44 | 584,900.66 |
| Travel expenses | 189,323.48 | 150,697.01 |
| Fee for stock certificate | 238,018.32 | 268,361.53 |
| Union funds | 367,422.85 | 296,122.92 |
| Employee education expenses | 20,380.94 | 25,496.98 |
| Other | 8,425,543.31 | 4,857,620.54 |
| Total | 40,014,168.55 | 43,036,872.15 |
65. R&D expenses
In RMB
| Item | Current period | Last Period |
| Employee's salary | 3,236,384.22 | |
| Depreciation | 106,285.00 | |
| Other | 17,960.38 | |
| Total | 3,360,629.60 |
66. Financial expenses
In RMB
| Item | Current period | Last Period |
| Interest expenses | 13,028,372.76 | 18,800,827.68 |
| Less: capitalized interest | -613,068.55 | |
| Expenses interest | 13,028,372.76 | 18,187,759.13 |
| Less: interest income | -10,344,030.33 | -13,142,285.32 |
| Gains/losses from exchange | -11,161.84 | 56,923.92 |
| Other | 139,530.44 | 76,172.31 |
| Total | 2,835,034.71 | 5,064,722.20 |
67. Other income
In RMB
| Sources of income generated | Current period | Last Period |
| Government subsidy | 3,368,979.50 | 8,755,536.55 |
68. Investment income
In RMB
| Item | Current period | Last Period |
| Income of long-term equity investment calculated based on equity | -1,148,715.33 | -243,622.43 |
| Investment income from the disposal of long-term equity investments | 33,534,881.55 | |
| Interest income from debt investment during the holding period | 13,977,075.28 | |
| Total | 12,828,359.95 | 33,291,259.12 |
69. Net exposure hedging income
70. Income from change of fair value
71. Credit impairment loss
72. Assets impairment loss
73. Income from assets disposal
In RMB
| Sources | Current period | Last Period |
| Fixed asset disposal gains and losses | 974,699.74 | 828,535.66 |
74. Non-operating income
In RMB
| Item | Current period | Last Period | Amount reckoned into current non-recurring gains/losses |
| Reversal of expected liabilities | 5,000,000.00 | 5,000,000.00 | |
| Other | 261,868.55 | 4,753.84 | 261,868.55 |
| Total | 5,261,868.55 | 4,753.84 | 5,261,868.55 |
75. Non-operating expense
In RMB
| Item | Current period | Last Period | Amount reckoned into current non-recurring gains/losses |
| Donation | 10,000.00 | 10,000.00 | 10,000.00 |
| Non-current assets disposal losses | 25,388.00 | 1,110.00 | 25,388.00 |
| Total | 35,388.00 | 11,110.00 | 35,388.00 |
76. Income tax expense
(1) Income tax expense
In RMB
| Item | Current period | Last Period |
| Payable tax in current period | 610,366.52 | |
| Total | 610,366.52 |
(2) Adjustment on accounting profit and income tax expenses
In RMB
| Item | Current period |
| Total profit | -761,593.85 |
77. Other comprehensive income
See notes
78. Items of ash flow statement
(1) Other cash received in relation to operation activities
In RMB
| Item | Current period | Last Period |
| Interest income | 12,142,721.92 | 10,929,678.85 |
| Government subsidy | 679,508.93 | 4,688,786.13 |
| Other | 3,055,829.97 | 6,887,829.91 |
| Total | 15,878,060.82 | 22,506,294.89 |
(2) Other cash paid in relation to operation activities
In RMB
| Item | Current period | Last Period |
| Cash cost | 24,840,140.78 | 20,655,739.80 |
| Other | 467,804.70 | 499,732.95 |
| Total | 25,307,945.48 | 21,155,472.75 |
(3) Cash received from other investment activities
In RMB
| Item | Current period | Last Period |
| Intercourse funds received from Huidong Server | 5,000,000.00 | 800,000.00 |
| Total | 5,000,000.00 | 800,000.00 |
(4) Cash paid related with investment activities
In RMB
| Item | Current period | Last Period |
| Difference between the cash balance and cash received on disposal of the equity from Shen Nan Dian (Dongguan) Weimei Power Co., Ltd on disposal day | 12,577,163.02 | |
| Total | 12,577,163.02 |
(5) Other cash received in relation to financing activities
In RMB
| Item | Current period | Last Period |
| Received from other company | 170,000,000.00 | |
| Total | 170,000,000.00 |
79. Supplementary information to statement of cash flow
(1) Supplementary information to statement of cash flow
In RMB
| Supplementary information | Current period | Last Period |
| 1. Net profit adjusted to cash flow of operation activities: | -- | -- |
| Net profit | -761,593.85 | 52,251,672.02 |
| Add: Assets impairment provision | ||
| Depreciation of fixed assets, consumption of oil assets and depreciation of productive biology assets | 24,944,215.60 | 25,805,403.49 |
| Depreciation of right-of-use assets | ||
| Amortization of intangible assets | 420,194.42 | 485,983.65 |
| Amortization of Long-term expenses to be apportioned | -683,491.47 | 125,971.38 |
| Loss from disposal of fixed assets, intangible assets and other long-term assets (gain is listed with “-”) | -974,699.74 | -828,535.66 |
| Losses on scrapping of fixed assets (gain is listed with “-”) | 25,388.00 | |
| Gain/loss of fair value changes (gain is listed with “-”) | ||
| Financial expenses (gain is listed with “-”) | 10,341,998.05 | 18,800,827.68 |
| Investment loss (gain is listed with “-”) | -12,828,359.95 | -33,291,259.12 |
| Decrease of deferred income tax asset ((increase is listed with “-”) | ||
| Increase of deferred income tax liability (decrease is listed with “-”) | ||
| Decrease of inventory (increase is listed with “-”) | -962,540.21 | 16,132,545.39 |
| Decrease of operating receivable accounts (increase is listed with “-”) | -376,080,479.26 | -18,919,356.89 |
| Increase of operating payable accounts (decrease is listed with “-”) | 425,480,081.40 | 9,373,309.52 |
| Other | ||
| Net cash flows arising from operating activities | 68,920,712.99 | 69,936,561.46 |
| 2. Material investment and financing not involved in cash flow | -- | -- |
| Conversion of debt into capital | ||
| Switching Company bonds due within one year | ||
| financing lease of fixed assets | ||
| 3. Net change of cash and cash equivalents: | -- | -- |
| Balance of cash at period end | 436,470,238.63 | 467,403,966.81 |
| Less: Balance of cash equivalent at period-begin | 397,101,272.21 | 381,490,000.96 |
| Add: Balance at period-end of cash equivalents | 15,353,018.84 | 617,500,000.00 |
| Less: Balance at period-begin of cash equivalents | 367,500,000.00 | 390,000,000.00 |
| Net increase of cash and cash equivalents | -312,778,014.74 | 313,413,965.85 |
(2) Net cash payment for the acquisition of a subsidiary in the period
(3) Net cash received from the disposal of subsidiaries
(4) Constitution of cash and cash equivalent
In RMB
| Item | Ending balance | Opening balance |
| I. Cash | 436,470,238.63 | 397,101,272.21 |
| Including: Cash on hand | 66,399.71 | 101,163.11 |
| Bank deposit available for payment at any time | 436,403,838.92 | 397,000,109.10 |
| II. Cash equivalent | 15,353,018.84 | 367,500,000.00 |
| III. Balance of cash and cash equivalents at | 451,823,257.47 | 764,601,272.21 |
80. Note of the changes of owners’ equity
81. Assets with ownership or use right restricted
82. Item of foreign currency
(1) Item of foreign currency
In RMB
the period-end
Item
| Item | Closing balance of foreign currency | Rate of conversion | Ending RMB balance converted |
| Monetary funds | -- | -- | |
| Including: USD | 838,171.45 | 6.46 | 5,414,671.38 |
| EUR | 1,017.87 | 7.69 | 7,823.55 |
| HKD | 398,254.42 | 0.83 | 331,379.59 |
| SGD | 4,668.03 | 4.80 | 22,419.15 |
| Account receivable | -- | -- | |
| Including: USD | |||
| EUR | |||
| HKD | |||
| Long-term borrowings | -- | -- | |
| Including: USD | |||
| EUR | |||
| HKD |
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,disclosed main operation place, book-keeping currency and basis for selection; if the book-keepingcurrency changed, explain reasons
□ Applicable √ Not applicable
83. Hedging
84. Government subsidy
(1) Government subsidy
In RMB
| Category | Amount | Item | Amount reckoned in current gain/loss |
| Subsidy for low-nitrogen transformation | 43,032,780.00 | Deferred income | 276,757.74 |
| Information construction | 520,000.00 | Deferred income | 25,490.12 |
| Support fund of recycling economy for sludge drying | 10,000,000.00 | Deferred income | 323,501.46 |
| Treasury subsidies for sludge drying | 5,100,000.00 | Deferred income | 127,500.00 |
| Special funds for energy conservation and emission reduction | 1,530,000.00 | Deferred income | 57,018.66 |
| Funded of energy efficiency improvement for electric machine | 518,400.00 | Deferred income | 17,280.00 |
| Subsidy for quality promotion of the air environment in Shenzhen | 70,977,273.00 | Deferred income | 2,365,909.08 |
(2) Government subsidy rebate
□ Applicable √ Not applicable
85. Other
VIII. Changes of consolidation scope
1. Enterprise combines not under the same control
2. Enterprise combines under the same control
3. Reverse purchase
4. Disposal of subsidiaries
Whether there is a single disposal of an investment in a subsidiary that resulted in a loss of control
□ Yes √ No
Whether there is a step-by-step disposal of investment in a subsidiary through multiple transactions and loss of control during theperiod
□ Yes √ No
5. Other reasons for consolidation range changed
6. Other
IX. Equity in other entity
1. Equity in subsidiary
(1) Constitute of enterprise group
| Subsidiary | Main operation place | Registered place | Business nature | Share-holding ratio | Acquired way | |
| Directly | Indirectly | |||||
| Shennandian (Zhongshan) Power Co., Ltd. (“Zhongshan Power”) | Zhongshan | Zhongshan | Power generation | 55.00% | 25.00% | Establishment |
| Shenzhen Shennandian Gas Turbine Engineering Technology Co., Ltd. (“Engineering Company”) | Shenzhen | Shenzhen | Project consultancy | 60.00% | 40.00% | Establishment |
| Shenzhen Shennandian Environmental Protection Co., Ltd. (“Environmental Protection Company”) | Shenzhen | Shenzhen | Sludge drying | 70.00% | 30.00% | Establishment |
| Shenzhen Server Petrochemical Supplying Co., Ltd. ("Shenzhen Server ") | Shenzhen | Shenzhen | Trade | 50.00% | Establishment | |
| Shenzhen New Power Industry Co., Ltd. ("New Power") | Shenzhen | Shenzhen | Power generation | 75.00% | 25.00% | Establishment |
| Shennan Energy | Singapore | Singapore | Trade | 100.00% | Establishment | |
| (Singapore) Co., Ltd. ("Singapore Company") | ||||||
| Hong Kong Syndisome Co., Ltd. ("Syndisome ") | Hong Kong | Hong Kong | Trade | 100.00% | Establishment | |
| Zhongshan Shennandian Storage Co., Ltd. ("Shenzhen Storage") | Zhongshan | Zhongshan | Warehousing | 80.00% | Establishment | |
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | Zhuhai | Zhuhai | Fund | 99.96% | Establishment |
The basis for holding half of the voting rights but still controlling the investee and holding more than half of the voting rights but notcontrolling the investee:
The Company holds 50% equity of Shenzhen Server, and holds a majority of voting rights in the company's board of directors at thesame time. Therefore, the Company has substantive control over it, and it is included in the consolidation scope of the consolidatedfinancial statements.
(2) Important non-wholly-owned subsidiary
In RMB
| Subsidiary | Share-holding ratio of minority | Gains/losses attributable to minority in the Period | Dividend announced to distribute for minority in the Period | Ending equity of minority |
| Shennandian (Zhongshan) Power Co., Ltd. (“Zhongshan Power”) | 20.00% | -3,650,982.63 | -15,380,595.65 |
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
| Subsidiary | Ending balance | Opening balance | ||||||||||
| 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 | |
| Shennandian (Zhongshan) Power Co., Ltd. (“Zhongshan Power”) | 49,808,404.10 | 475,249,273.10 | 525,057,677.20 | 596,599,319.54 | 5,361,335.92 | 601,960,655.46 | 63,887,511.26 | 486,793,086.63 | 550,680,597.89 | 603,862,934.78 | 5,465,728.24 | 609,328,663.02 |
In RMB
| Subsidiary | Current period | Last Period | ||||||
| Operation Income | Net profit | Total comprehensive income | Cash flow from operation activity | Operation Income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Shennandian (Zhongshan) Power Co., Ltd. (“Zhongshan Power”) | 70,054,400.77 | -18,254,913.13 | -18,254,913.13 | -3,240,430.86 | 85,765,596.92 | 13,942,405.29 | 13,942,405.29 | 31,248,237.34 |
Other notes:
2. Transaction that has owners’ equity shares changed in subsidiary but still with controlling rights
3. Equity in joint venture and associated enterprise
(1) Important joint venture and associated enterprise
| Joint venture or associated enterprise | Main operation place | Registered place | Business nature | Share-holding ratio | Accounting treatment on investment for joint venture and associated enterprise | |
| Directly | Indirectly | |||||
| Huidong Server Port Comprehensive Development Co., Ltd. | Renshan Town, Huidong County | Huidong County | Wharf operation | 40.00% | Equity method | |
(2) Main financial information of the important joint venture
In RMB
| Ending balance/Current period | Opening balance/Last Period | |
| Book value of equity investment in joint ventures | 7,744,693.53 | 8,893,408.86 |
| Net profit | -1,148,715.33 | -243,622.43 |
| Total comprehensive income | -1,148,715.33 | -243,622.43 |
4. Major conduct joint operation
5. Structured body excluding in consolidate financial statement
6. Other
X. Risk related with financial instrument
The Company's main financial instruments include equity investment, notes receivable, long-term and short-termloans, accounts receivable, accounts payable, other payable, etc., see details of each financial instrument in relateditems of this annotation III (x). The risks associated with these financial instruments and the risk managementpolicies adopted by the Company to reduce these risks are described as below. The management of the Companymanages and monitors these risk exposures to ensure that the above risks are controlled within the limit range.The Company uses the sensitivity analysis technique to analyze the possible impact of the risk variable on thecurrent profit and loss or the shareholders' equity. Since any risk variable rarely changes in isolation, and thecorrelation existing among the variables shall have a significant effect on the final amount of changes about acertain risk variable, therefore, the following proceeds by assuming that the change in each variable isindependent.
1. Credit risk
Credit risk refers to the risk that one party to a financial instrument fails to perform its obligations, causing theother party to suffer financial losses. The Company is mainly faced with customer credit risk caused by creditsales. Before signing a new contract, the Company will evaluate the credit risk of the new customer, including theexternal credit rating and, in some cases, the bank credit certificate (when this information is available). Thecompany has set a credit limit for each customer, which is the maximum amount without additional approval.The company ensures that the company's overall credit risk is within a controllable range through quarterlymonitoring of existing customer credit ratings and monthly review of accounts receivable aging analysis. Whenmonitoring the credit risk of customers, they are grouped according to their credit characteristics. Customers ratedas "high risk" will be placed on the restricted customer list, and only with additional approval, the company cansell them on credit in the future, otherwise they must be required to pay the corresponding amount in advance.
2. Market risk
Market risks of financial instruments refers to the risks that the fair value or future cash flow of such financialinstruments will fluctuate due to the changes in market prices, including FX risks, interest rate risks and otherprice risks.
(1) Interest rate risk
The Company's cash flow change risk of financial instruments arising from interest rate change is mainly relatedto the floating interest rate bank loans (see details in Note V (16); Note V(35).Interest rate risk sensitivity analysis:
The interest rate risk sensitivity analysis is based on the following assumptions:
Changes in market interest rates affect the interest income or expense of financial instruments with variableinterest rate; For financial instruments with fixed rate by fair value measurement, the changes in market interestrates only affect their interest income or expense; For derivative financial instruments designated as hedginginstruments, the changes in market interest rates affect their fair value, and all interest rate hedging prediction ishighly effective; Calculate the changes in fair value of derivative financial instruments and other financial assetsand liabilities by using the cash flow discount method at the market interest rate at the balance sheet date.On the basis of above assumptions, in case that other variables keep unchanged, the pre-tax effect of possiblereasonable changes in interest rates on current profits and losses and shareholders' equity is as follows:
| Rate changes | Current year | Last year | ||
| Impact on profit | Impact on shareholders’ equity | Impact on profit | Impact on shareholders’ equity | |
| 5% increased | -651,409.17 | -643,610.18 | -878,221.61 | -800,563.02 |
| 5% decreased | 651,409.17 | 643,610.18 | 878,221.61 | 800,563.02 |
(2) FX risks
Foreign exchange risk refers to the risk of losses due to exchange rate changes. The Company’s foreign exchangerisk is mainly related to the US dollar. On June 30, 2021, except for the balance of foreign currency monetaryitems of 44, foreign currency monetary in Note V, the assets and liabilities of the Company are RMB balance. Theforeign exchange risk arising from the assets and liabilities of such foreign currency balances may have an impacton the Company's operating results.
3. Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation of settlement bymeans of cash or other financial assets. The Company's policy is to ensure that it has sufficient cash to repay thedebts due. Liquidity risk is centrally controlled by the Company's financial department. The financial departmentmonitors cash balances, marketable securities that can be cashed at any time, and rolling forecasts of cash flows inthe next 12 months to ensure that the company has sufficient funds to repay debts under all reasonable forecasts.
XI. Disclosure of fair valueXII. Related party and related party transactions
1. Parent company of the enterprise
2. Subsidiary of the enterprise
Found more in Note IX. 1.” Equity in subsidiary”
3. Joint venture and associated enterprise
Found more in Note IX.3. “Equity in joint venture and associated enterprise”
4. Other related party
| Other Related party | Relationship with the Enterprise |
| Shenzhen Energy Group Co., Ltd. (“Shenzhen Energy Group” for short) | 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 indirectly holding more than 5% of the company's shares through Shenzhen Energy Group |
| Wanhe Securities Co., Ltd. | Other related parties |
| Shenzhen Energy Group Co., Ltd. | Other related parties |
5. Related transaction
6. Receivable/payable items of related parties
(1) Receivable item
In RMB
| Item | Related party | Ending balance | Opening balance | ||
| Book balance | Bad debt provision | Book balance | Bad debt provision | ||
| Other account receivables | |||||
| Huidong Server | 14,911,484.45 | 14,740,501.44 | |||
| Huidong Server managed account | 1,264,429.70 | 6,634,071.38 | |||
XIII. Share-based payment
1. Overall situation of share-based payment
□ Applicable √ Not applicable
2. Share-based payment settled by equity
□ Applicable √ Not applicable
3. Share-based payment settled by cash
□ Applicable √ Not applicable
XIV. Undertakings or contingency
1. Important undertakings
2. Contingency
(1) Contingency on balance sheet date
(2) For the important contingency not necessary to disclosed by the Company, explained reasons
The Company has no important contingency that need to disclosed
3. Other
XV. Events after balance sheet dateXVI. Other important events
1. Previous accounting errors collection
2. Debt restructuring
3. Assets replacement
4. Pension plan
5. Termination of operation
6. Segment
(1) Recognition basis and accounting policy for reportable segment
According to the Company’s internal organizational structure, management requirements and internal reportingsystem, the Company’s operating business is divided into three business divisions, i.e. power supply and heating,fuel trading, and other businesses. The Company’s management regularly evaluates the business performance ofthese divisions in order to determine the allocation of resources and evaluate the performance.Divisional reporting information is disclosed in accordance with the accounting policies and measurementstandards adopted when each division reports to the management. These measurement bases are consistent withthe accounting and measurement bases used when preparing financial statements.
(2) Financial information for reportable segment
In RMB
| Item | Power supply & heating | Fuel trading | Other | Fuel trading | Total |
| Operating revenue | 392,772,510.06 | 544,000.02 | 19,063,169.39 | 35,777,286.09 | 376,602,393.38 |
| Operating cost | 369,839,628.83 | 117,808.30 | 16,772,415.12 | 35,519,628.34 | 351,210,223.91 |
| Total profit | 3,895,743,951.05 | 250,238,928.58 | 323,770,822.50 | 1,263,594,959.59 | 3,206,158,742.54 |
| Total liabilities | 1,882,258,700.53 | 19,671,798.29 | 31,021,620.66 | 813,774,304.68 | 1,119,177,814.80 |
XVII. Principal notes of financial statements of parent company
1. Account receivable
(1) Classification of account receivable
In RMB
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion | Amount | Accrual proportion | Amount | Proportion | Amount | Accrual proportion | |||
| Including: | ||||||||||
| Account receivable with bad debt provision accrual on portfolio | 48,374,534.89 | 48,374,534.89 | 24,673,115.32 | 24,673,115.32 | ||||||
| Total | 48,374,534.89 | 48,374,534.89 | 24,673,115.32 | 24,673,115.32 | ||||||
Bad debt provision accrual on portfolio: 0
In RMB
| Name | Ending balance | ||
| Book balance | Bad debt provision | Accrual proportion | |
| Low credit risk portfolio | 48,374,534.89 | ||
| Total | 48,374,534.89 | -- | |
If the provision for bad debts of accounts receivable is made in accordance with the general model of expected credit losses, pleaserefer to the disclosure of other receivables to disclose related information about bad-debt provisions:
□ Applicable √ Not applicable
By account age
In RMB
| Account age | Ending balance |
| Within 1 year (including 1 year) | 48,371,645.89 |
| Over 3 years | 2,889.00 |
| 3-4 years | 2,889.00 |
| Total | 48,374,534.89 |
2. Other account receivables
In RMB
| Item | Ending balance | Opening balance |
| Other account receivables | 595,045,866.53 | 598,044,417.89 |
| Total | 595,045,866.53 | 598,044,417.89 |
(1) Interest receivable
(2) Dividend receivable
(3) Other account receivables
1) Other account receivables classification by nature
In RMB
| Nature | Ending book balance | Opening book balance |
| Related party transactions | 586,648,518.74 | 596,066,327.13 |
| Dormitory receivable | 2,083,698.16 | 2,083,698.16 |
| Deposit receivable | 1,658,796.73 | 1,658,753.42 |
| Personal money | 9,969,037.63 | 9,969,037.63 |
| Other | 22,015,458.71 | 15,596,244.99 |
| Less:Bad debt provision | -27,329,643.44 | -27,329,643.44 |
| Total | 595,045,866.53 | 598,044,417.89 |
2) Accrual of bad debt provision
In RMB
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance on Jan. 1, 2021 | 27,329,643.44 | 27,329,643.44 | ||
| Balance of Jan. 1, 2021 in the period | —— | —— | —— | —— |
| Balance on Jun. 30, 2021 | 27,329,643.44 | 27,329,643.44 |
Change of book balance of loss provision with amount has major changes in the period
□ Applicable √ Not applicable
By account age
In RMB
| Account age | Ending balance |
| Within 1 year (including 1 year) | 30,034,098.87 |
| 1-2 years | 12,420,134.13 |
| Over 3 years | 579,921,276.97 |
| 3-4 years | 579,921,276.97 |
| Total | 622,375,509.97 |
3. Long-term equity investments
In RMB
| Item | Ending balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Investment for subsidiary | 716,893,717.00 | 347,745,035.00 | 369,148,682.00 | 597,936,200.00 | 347,745,035.00 | 250,191,165.00 |
| Total | 716,893,717.00 | 347,745,035.00 | 369,148,682.00 | 597,936,200.00 | 347,745,035.00 | 250,191,165.00 |
(1) Investment for subsidiary
In RMB
| The invested entity | Opening balance (book value) | Changes in Current Period | Ending balance (book value) | Ending balance of depreciation reserves | |||
| Additional Investment | Negative Investment | Provision for impairment loss | Other | ||||
| Shenzhen Server Oil Supply Company | 26,650,000.00 | 26,650,000.00 | |||||
| Shennan Energy Singapore Company | 6,703,800.00 | 6,703,800.00 | |||||
| Shenzhen New Power Industry Co., Ltd. | 71,270,000.00 | 71,270,000.00 | |||||
| Shennandian (Zhongshan) Power Co., Ltd. | 62,994,965.00 | 62,994,965.00 | 347,745,035.00 | ||||
| Shenzhen Shennandian Gas Turbine Engineering | 6,000,000.00 | 6,000,000.00 | |||||
| Technology Co., Ltd. | |||||||
| Shenzhen Shennandian Environmental Protection Co., Ltd. | 55,300,000.00 | 55,300,000.00 | |||||
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | 21,272,400.00 | 118,957,517.00 | 140,229,917.00 | ||||
| Total | 250,191,165.00 | 118,957,517.00 | 369,148,682.00 | 347,745,035.00 |
(2) Investment for associates and joint venture
(3) Other notes
4. Operating income and cost
In RMB
| Item | Current period | Last Period | ||
| Income | Cost | Income | Cost | |
| Main business | 149,153,876.16 | 170,891,694.03 | 118,119,714.73 | 133,626,167.32 |
| Other business | 35,777,286.09 | 491,345.55 | 27,647,300.61 | 4,310,751.77 |
| Total | 184,931,162.25 | 171,383,039.58 | 145,767,015.34 | 137,936,919.09 |
5. Investment income
In RMB
| Item | Current period | Last Period |
| Interest income from debt investment during the holding period | 13,977,075.28 | |
| Investment income from the disposal of other debt investments | -14,432,400.00 | |
| Total | 13,977,075.28 | -14,432,400.00 |
6. Other
XVIII. Supplementary Information
1. Current non-recurring gains/losses
√ Applicable □ Not applicable
In RMB
| Item | Amount | Note |
| Gains/losses from the disposal of non-current asset | 974,699.74 | |
| Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota or ration according to national standards, which are closely relevant to enterprise’s business) | 3,368,979.50 | The government subsidy related to assets are being amortized |
| Gains and losses arising from contingent proceedings irrelevant to normal operation of the Company | 5,000,000.00 | Reversal of expected liabilities |
| Held transaction financial asset, gains/losses of changes of fair values from transaction financial liabilities, and investment gains from disposal of transaction financial asset, transaction financial liabilities and financial asset available for sales, exclude the effective hedging business relevant with normal operations of the Company | 13,977,075.28 | Mainly financial income |
| Other non-operating income and expenditure except for the aforementioned items | 226,480.55 | |
| Impact on minority shareholders’ equity | 2,573,349.88 | |
| Total | 20,973,885.19 | -- |
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for CompaniesOffering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according tothe lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering TheirSecurities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
2. ROE and earnings per share (EPS)
| Profits during report period | Weighted average ROE | Earnings per share(EPS) | |
| Basic earnings per share | Diluted earnings per | ||
| (RMB/Share) | share (RMB/Share) | ||
| Net profits belong to common stock stockholders of the Company | 0.07% | 0.002 | 0.002 |
| Net profits belong to common stock stockholders of the Company after deducting nonrecurring gains and losses | -0.95% | -0.0324 | -0.0324 |
3. Difference of the accounting data under accounting rules in and out of China
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
(3) Explanation on data differences under the accounting standards in and out of China; as for thedifferences adjustment audited by foreign auditing institute, listed name of the institute
4. Other