Shenzhen Nanshan Power Co., Ltd.
Annual Report 2022
April 2023
Annual Report 2022Section I Important Notice, Contents and Interpretation
The Board of Directors, the Board of Supervisors, all directors, supervisors and senior officers of ShenzhenNanshan Power Co., Ltd. guarantee that the Annual Report contains no misrepresentations, misleadingstatements or material omissions, and take all responsibilities, individual and/or joint, for the reality,accuracy and completion of the whole contents.Chairman Kong Guoliang, person in charge of accounting and GM Chen Yuhui, CFO Zhang Xiaoyin andhead of accounting department (chief accountants) Lin Xiaojia guarantee that the Financial Report of theannual report disclosed is truthful, accurate and complete.Except independent director Mr. Chen Zetong was unable to personally attend the Board Meeting toreview annual report due to work reasons, authorized independent director Mr. Du Wei to attend themeeting and exercise voting rights on his behalf. All other directors attended the Board Meeting forannual report deliberation.The Company plans not to pay cash dividends, issue bonus shares and increase share capital by convertingfrom public reserves this year.Concerning the forward-looking statements with future planning involved in the Annual Report, they donot constitute a substantial commitment for investors. Investors are advised to exercise caution ofinvestment risks.The Report has been prepared in both Chinese and English. If there are any discrepancies, the Chineseversion shall prevail. Investors are advised to read the full text of the Report carefully.
Contents
Section I Important Notice, Contents and Interpretation ...... 2
Section II Company Profile and Main Financial Indexes ...... 6
Section Ⅲ Management Discussion and Analysis ...... 11
Section IV Corporate Governance ...... 34
Section V Environment and Social Responsibilities ...... 53
Section VI Important Matters ...... 56
Section VII Changes in Shares and Particular about Shareholders ...... 62
Section VIII Preferred Shares ...... 69
Section IX Bonds ...... 70
Section X Financial Report ...... 71
List of Reference DocumentsI. Original Annual Report of 2022 carrying the signature of the legal representative of the Company.Ⅱ. Financial statements with signature and seal of Person in charge of the Company, person in charge ofaccounting works、CFO and person in charge of accounting organ(accountant in charge).III. Original audit report with seal of accounting firms and signature and seal of CPA.IV. The originals of all company documents and announcements which are publicly disclosed on designatedmedia during the reporting period.Ⅴ. Place of reference: Shenzhen Stock Exchange, the office of the Company's Board of Directors.
Interpretation
| Items | Refers to | Contents |
| Company, the Company, Shen Nan Dian, the listed company | Refers to | Shenzhen Nanshan Power Co., Ltd. |
| China Securities Regulatory Commission | Refers to | China Securities Regulatory Commission |
| SASAC of Shenzhen | Refers to | State-owned Assets Supervision and Administration Commission of the People's Government of Shenzhen |
| 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 Thermal Power Station | Refers to | Nanshan Thermal Power Station 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. |
| Audit institution, LIXINZHONGLIAN, accounting organ | Refers to | LIXINZHONGLIAN CPAS (Special General Partnership) |
| Company Law | Refers to | Company Law of the People's Republic of China |
| Securities Act | Refers to | Securities Law of the People's Republic of China |
| Stock Listing Rules | Refers to | Rules Governing the Listing of Stocks on Shenzhen Stock Exchange |
| Articles of Association | Refers to | Articles of Association of Shenzhen Nanshan Power Co., Ltd. |
| Yuan, ten thousand Yuan, one hundred million Yuan | Refers to | Except the special description of the monetary unit, the rest of the monetary unit is Yuan, ten thousand Yuan, one hundred million Yuan |
| Reporting period | Refers to | January 1, 2022 to December 31, 2022 |
Section II Company Profile and Main Financial IndexesI. Company information
| Stock abbreviation | 000037, 200037 | Stock code | Shen Nan Dian A, Shen Nan Dian B |
| Stock exchange | Shenzhen Stock Exchange | ||
| Name of the Company (in Chinese) | Shenzhen Nanshan Power Co., Ltd. | ||
| Short form of the Company (in Chinese) | Shen Nan Dian | ||
| Foreign name of the Company (if any) | Shenzhen Nanshan Power Co., Ltd. | ||
| Legal representative | Kong Guoliang | ||
| Registered address | No. 2097, Yueliangwan Avenue, Nanshan District, Shenzhen, Guangdong Province | ||
| Postal code | 518054 | ||
| Historical changes of registered address | No | ||
| Office address | 16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, Guangdong Province | ||
| Postal code | 518053 | ||
| Website | http://www.nsrd.com.cn | ||
| public@nspower.com.cn;investor@nspower.com.cn | |||
II. Contact person and contact information
| Secretary of the Board of Directors | Securities affairs representative | |
| Name | Zou Yi | |
| Address | 16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, Guangdong Province | |
| Tel. | 0755-26003611 | |
| Fax | 0755-26003684 | |
| investor@nspower.com.cn |
III. Information disclosure and place of preparation
| Website of the stock exchange on which the Company discloses its annual report | Shenzhen Stock Exchange: http://www.szse.cn/ |
| Name and website of the media on which the Company discloses the annual report | Securities Times: http://www.stcn.com/; CNINF: http://www.cninfo.com.cn/ |
| Preparation place for annual report | Office of the Board of Directors, 17/F, Hantang Building, OCT, Nanshan District, Shenzhen, Guangdong Province |
IV. Registration changes of the Company
| Uniform social credit code | 91440300618815121H |
| Changes of main business since listing (if applicable) | N/A |
| Previous changes in controlling shareholders (if any) | No controlling shareholder |
V. Other relevant informationCPA engaged by the Company
| Name of CPA | LIXINZHONGLIAN CPAS (Special General Partnership) |
| Office address of CPA | 1-1-2205-11, North Zone, Financial and Trade Center, No. 6865, Asia Road, Pilot Free Trade Zones (Dong-jiang Free Trade Port Zone), Tianjin |
| Signing accountants | Cao Wei, Liu Xinfa |
Sponsor engaged by the Company for performing continuous supervision duties in the reporting period
□Applicable ?Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in the reportingperiod
□Applicable ?Not applicable
VI. Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes ?No
| 2022 | 2021 | Changes in the current year over the previous year (+,-) | 2020 | |
| Operating income (RMB) | 694,227,657.28 | 757,175,743.41 | -8.31% | 985,253,831.58 |
| Net profit attributable to shareholders of the listed company (RMB) | -160,163,240.67 | -439,448,712.13 | 63.55% | 64,024,291.32 |
| Net profit attributable to shareholders of the listed Company after deducting non-recurring gains and losses (RMB) | -225,967,573.71 | -514,142,213.75 | 56.05% | 7,601,038.59 |
| Net cash flows from operating activities (RMB) | 207,168,402.26 | -39,258,302.07 | 627.71% | 260,725,409.02 |
| Basic earnings per share (RMB/share) | -0.2657 | -0.7291 | 63.56% | 0.1062 |
| Diluted earnings per share (RMB/share) | -0.2657 | -0.7291 | 63.56% | 0.1062 |
| Return on weighted average net assets | -10.43% | -23.95% | Up 13.52 percentage points | 3.15% |
| End of 2022 | Year end of 2021 | Increase/decrease y- | Year end of 2020 |
| o-y | ||||
| Total assets (RMB) | 2,606,216,345.99 | 2,790,002,824.41 | -6.59% | 3,020,830,930.06 |
| Net assets attributable to shareholders of the listed company (RMB) | 1,455,129,894.84 | 1,615,293,135.51 | -9.92% | 2,054,741,847.64 |
The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal yearsis negative, and the audit report of last year shows that the ability to continue operating is uncertain
□Yes ?No
The lower of net profit before and after deducting the non-recurring gains/losses is negative?Yes □ No
| Item | 2022 | 2021 | Note |
| Operating income (RMB) | 694,227,657.28 | 757,175,743.41 | Mainly the income from power generation |
| Amount deducted from operating income (RMB) | 1,611,967.02 | 1,218,981.05 | Mainly income from housing lease |
| Amount after deduction of operating income (RMB) | 692,615,690.26 | 755,956,762.36 | Other operating income after deducting the rental income |
VII. 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(International Accounting 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 foreignaccounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.VIII. Quarterly main financial indexes
Unit: RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operating income | 75,090,604.86 | 154,152,937.21 | 296,803,666.77 | 168,180,448.44 |
| Net profit attributable to shareholders of the listed company | -38,834,600.08 | -55,263,549.01 | -48,481,519.82 | -17,583,571.76 |
| Net profit attributable to shareholders of the listed Company after deducting non- | -53,403,178.00 | -74,102,376.48 | -65,686,340.91 | -32,775,678.32 |
| recurring gains and losses | ||||
| Net cash flows from operating activities | -34,049,453.61 | 234,637,536.91 | 18,368,492.90 | -11,788,173.94 |
Whether there are significant differences between the above-mentioned financial indexes or its total number andthe relevant financial indexes disclosed in the Company’s quarterly report and semi-annual report
□ Yes ?No
IX. Non-recurring profit and loss items and amounts?Applicable □Not applicable
Unit: RMB
| Item | 2022 | 2021 | 2020 | Description |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | -1,171,953.71 | 974,699.74 | -1,144,118.91 | |
| Governmental subsidy calculated into current gains and losses (while closely related with the normal business of the Company, the government subsidy that accord with the provision of national policies and are continuously enjoyed in line with a certain standard quota or quantity are excluded) | 9,333,093.72 | 23,396,336.60 | 13,833,445.53 | Amortization of government subsidy related to assets |
| Gains/losses on debt restructuring | 7,593,783.90 | |||
| Gains/losses arising from contingency that is not related to the normal operation business of the Company | 5,000,000.00 | 6,584,816.78 | ||
| Gains/losses of fair value changes arising from holding of the trading financial asset, trading financial liability and investment earnings obtained from disposing the trading financial asset, trading financial liability, and financial assets available for sale, except for the effective hedging business related to normal operation of the Company | 58,227,971.21 | 47,887,839.11 | Mainly income from wealth management |
| Other non-operating income and expenses other than those mentioned above | -635,065.42 | 13,652.99 | -118,229.62 | |
| Other gains/losses items that meet the definition of non-recurring gains/losses | 33,534,881.55 | |||
| Less: impact on income tax | 152,683.61 | |||
| Impact on minority shareholders’ equity (after-tax) | -50,287.24 | 2,579,026.82 | 3,708,642.89 | |
| Total | 65,804,333.04 | 74,693,501.62 | 56,423,252.73 | -- |
Details of other gains/losses items that meet the definition of non-recurring gains/losses:
□Applicable ?Not applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---Extraordinary Profit/loss
□Applicable ?Not applicable
There are no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/lossin Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---Extraordinary Profit/loss.
Section Ⅲ Management Discussion and AnalysisI. Industry of the Company during the reporting periodThe Company shall comply with the relevant disclosure requirement for electricity-related industries of ShenzhenStock Exchange Self-Regulatory Guidelines for Listed Companies No.3 - Disclosure of Industry Information.The electricity consumption of the entire society in the country was 8.64 trillion kWh in 2022, up 3.6% year-on-year, according to the Analysis and Forecast Report on the National Power Supply and Demand Situation in 2023released by the China Electricity Council. In the first, second, third and fourth quarters, the electricityconsumption increased by 5.0%, 0.8%, 6.0% and 2.5%, respectively. Affected by the epidemic and other factors,the electricity consumption growth slowed down in the second and fourth quarters. From the perspective ofindustry, the electricity consumption of the primary industry was 114.6 billion kWh, up 10.4% year on year; Theelectricity consumption of the secondary industry was 5.70 trillion kWh, up 1.2% year on year; The electricityconsumption of the tertiary industry was 1.49 trillion kWh, up 4.4% year on year; Urban and rural residents'domestic electricity consumption was 1.34 trillion kWh, up 13.8% year on year. A total of 27 provinces in thecountry were experiencing positive growth in electricity consumption, and the central region led the growth rate.The energy output of industrial enterprises above designated size in the country was 8.39 trillion kWh, up 2.2%year-on-year, of which the thermal power, hydropower and nuclear power generation of industrial enterprisesabove designated size increased by 0.9%, 1.0% and 2.5% respectively year-on-year. In 2022, full-caliber grid-connected wind power and solar energy output increased by 16.3% and 30.8% year-on-year respectively. Full-caliber non-fossil energy output increased by 8.7% year-on-year, accounting for 36.2% of total energy output, up
1.7 percentage points year-on-year. Full-caliber coal energy output increased by 0.7% year-on-year, accountingfor 58.4% of total full-caliber energy output, down 1.7 percentage points year-on-year. Coal-based power is stillthe most important source of electricity supply in China. In the third quarter, when the water supply was obviouslyshort, the full-caliber coal power energy output increased by 9.2% YOY, which better compensated for the declinein hydropower output and gave full play to the role of coal power in guaranteeing supply.In 2022, Guangdong Province comprehensively carried out the trial operation of the southern (starting fromGuangdong) electricity spot market settlement, and the “medium and long-term+spot” market fully shifted to theabsolute price mode. According to the Southern (starting with Guangdong) Electricity Spot Market 2023 AnnualReport, Guangdong Province's maximum regulated load was 142 million kW (July 25), up 5% year on year; Theelectricity generated and received by unified dispatching was 761.6 billion kWh, basically flat year on year. Themaximum transmission electricity from the western provinces of China is 43.29 million kW, an increase of about
4.4 million kW compared with the annual plan and a total of 181.5 billion kWh from the western provinces ofChina. The electricity supply met the demand throughout the year, and there was no peak load shifting and powerlimiting. The installed capacity of unified dispatching is 171 million kW, including 134.5 million kW forprovincial dispatching and 36.53 million kW for local regulation. In terms of unit production, the newly installedbackbone power units in Guangdong Province amount to 21 (sets) with a total capacity of 6.14 million kW. Interms of unit utilization hours, they are 4,720 hours for coal-fired generator units, down 353 hours year-on-year;2,587 hours for gas-fire generator units, down 468 hours year-on-year; 7,117 hours for nuclear power generatorunits, down 385 hours year-on-year (8,039 hours after deducting that of the Jindao nuclear power plant, up 46hours year-on-year); 2,479 hours for hydroelectric generator units, up 826 hours year-on-year; 1,125 hours for PVgenerator units, down 89 hours year-on-year; 2,347 hours for wind power generator units, up 464 hours year-on-year; 3,501 hours for biomass, down 2,944 hours year-on-year. The accumulated net energy output of wind power,PV power, hydropower and biomass power is 80.7 billion kWh, up 48% year-on-year. The accumulated netenergy output nuclear power is 96.12 billion kWh, down 4.9% year-on-year.China's natural gas production in 2022 is 217.84 billion cubic meters, up 6.3% year-on-year, according to third-party data from the natural gas industry; The import volume of natural gas is 153.48 billion cubic meters, down
9.7% YoY; The export volume of natural gas is 5.92 billion cubic meters, up 5.7% YoY; Theapparent consumption of natural gas was 365.39 billion cubic meters, down 1.0% YoY. In terms of LNG supplyand demand, the apparent consumption of LNG in China in 2022 is 28.726 million tons, down 23.81% YoY.Among them, domestic LNG supply is 20.60.14 million tons, up 16.17% YoY, while imported LNG tanker supplyis 8.1213 million tons, down 59.33% YoY. In terms of LNG prices, the average ex-factory price of LNG in Chinain 2022 was RMB 6,784/ton, up 38.12% YoY. Among them, the average ex-factory price of domestic LNG wasRMB 6,527/ton, up 29.48% YoY. The average ex-station price of imported LNG was RMB 7,196/ton, up 31.77%YoY and the average delivery price of LNG in China was RMB 7,037/ton, up 36.17% YoY. Generally, in 2022,international geopolitical turmoil led to an expected increase in energy supply shortages and rose international
energy prices. The international LNG spot price once hit a record high, and continued to run at a high level, whilethe international crude oil price as a whole rose, and the price of China's natural gas imports based on a long termalso followed suit. Under the pressure of increasing costs, domestic natural gas supply enterprises basically sellnatural gas in accordance with the principle of favorable prices, coupled with tight supply, domestic pipeline gasand LNG prices have been pushing up, and the average price of natural gas purchases of the Company hasincreased by about 32% compared with the same period last year in 2021, which directly leads to the Companyfacing the situation of inverted power generation costs and electricity sales prices, and serious losses in powergeneration. On the other hand, the government issued a series of measures to encourage power generationcompanies to implement electricity guarantee, including an annual contract cost facilitation compensation of
0.064 yuan/kWh for market-oriented gas unit from April 2022 to December 2022. According to the GuangdongProvince Power Exchange's Circular on the Settlement and Trial Operation of Southern (Guangdong) ElectricitySpot Market (GDJY [2022] No. 205) in October 2022, from August 2022 to March 2023, an compensation of
0.064 yuan/kWh in addition to original compensation for changes in gas-fired turbine generators was given. Theabove subsidies mechanism alleviated the operating difficulties faced by Guangdong Province Power Exchange toa certain extent, but still could not reverse the loss.II. Main business engaged by the Company during the reporting periodThe Company shall comply with the relevant disclosure requirement for electricity-related industries of ShenzhenStock Exchange Self-Regulatory Guidelines for Listed Companies No.3 - Disclosure of Industry Information.The main business of the Company is production and operation of power supply and heating, as well as technicalconsulting and service related to power station (plants). At the end of the reporting period, the Company had twogas turbine power plants, with a total of five 9E gas-steam combined cycle power generator units, with a totalinstalled capacity of 900,000 kW (including Nanshan Thermal Power Plant 3 × 180,000kW, Zhongshan NanlangPower Plant 2 × 180,000 kW). Both gas turbine power plants are located in the power load center area of the PearlRiver Delta, which are the main peak shaving power sources in the region, and are currently in normal productionand operation.On February 21, 2022, after deliberation and approval at the 5th extraordinary meeting of the 9th Board ofDirectors of the Company, the Company started the shutdown and decommissioning of two 9E gas turbines ofShen Nan Dian Zhongshan Company, and submitted its application for shutdown and decommissioning to theGuangdong Province Energy Bureau on November 24, 2022. Shen Nan Dian Zhongshan Company will continueits power generation business before obtaining the approval, which will not have a significant impact on thecurrent production and operation of the Company and Shen Nan Dian Zhongshan Company.During the reporting period, the electricity business faced many challenges, such as repeated Covid-19 epidemic,fierce electric power market competition and high fuel prices. In order to minimize the negative impact of theexternal environment on the Company's operating performance, the Company has implemented a series ofbusiness layout and management changes with innovative thinking and tenacious perseverance, defined annualbusiness objectives and policies, and adopted targeted major measures. On the basis of paying close attention towork safety management, the Company has continuously increased economic operation management efforts inline with the trend of the accelerating process of reform of electricity market in Guangdong Province, organizedtwo subordinate power stations to actively participate in the electric power marketing competition and achievedgood results, contributing to reducing losses.During the reporting period, the Company's non-electricity business also faced tremendous pressures andchallenges. The Shen Nan Dian Engineering Company continues to develop technical consulting and technicalservices for domestic gas turbine power plant construction while resisting the pressure of epidemic control andprevention and promoting overseas projects. The Shen Nan Dian Environment Protection Company has shifted itsfocus to exploring the path of business transformation and upgrading due to the environmental protection pressureand the adjustment of Shenzhen municipal sludge disposal route.Information of the main production and operation
| Item | Current Period | Same Period Last Year |
| Total installed capacity (10,000 KW) | 90 | 90 |
| Installed capacity of newly commissioned unit (10,000 KW) | 0 | 0 |
| Planned installed capacity of approved projects (10,000 KW) | 0 | 0 |
| Planned installed capacity of construction in progress (10,000 KW) | 0 | 0 |
| Energy output (100 million kWh) | 8.60 | 11.48 |
| Net energy output or sales of electricity (100 million kWh) | 8.58 | 11.44 |
| Average power consumption rate of power station (%) | 3.50% | 3.25% |
| Utilization hours of power station (hours) | 946 | 1,263 |
The Company's power sales business?Applicable □Not applicableIn 2022, the Company's two power stations achieved a total net energy output of 858 million kWh, a year-on-yeardecline of 25%. The annual purchase, market electricity and other medium and long-term contract electricitytotaled 1.441 billion kWh. The electricity completion of each subsidiary power station of the Company is asfollows: Nanshan Thermal Power Station completed net energy output of 800 million KWH, and the annualpurchasing, market electricity and other medium and long-term contract electricity totalled 928 million KWH;Zhongshan Nanlang Power Plant completed net energy output of 58 million kWh, and the annual procurement,market electricity and other medium and long-term contract electricity totaled 513 million kWh.Reasons for significant changes in relevant data
□Applicable Not applicable?
III. Analysis of core competitivenessIn recent years, the epidemic situation of Covid-19 epidemic has been repeated constantly. Influenced by themacro-economic situation and the common problems in the gas turbine power generation industry, the mainbusiness of the Company is facing increasing difficulties and challenges. However, the basic core competitivenessformed by more than 30 years of operation and development, the strong support of the Company's mainshareholders, and the innovative measures taken by the Company's Board of Directors and the management teamin operation and management, it has laid a necessary foundation for the Company to continuing operation andseek transformation and development. During the reports period, the Company did all the work steadily, and madeevery effort to promote the high-quality development of the Company, and the core competitiveness of theCompany was further consolidated and improved, with the aim of “revitalizing stock, introducing increment andtransforming development” and the principle of scientific, pragmatic, efficient, fair and equitable management.
1. Management culture of hard work and innovation. The Company has a group of management talents withinnovation consciousness and hard work spirit. Through deepening the reform of human resources andestablishing a performance-oriented performance assessment and incentive mechanism, the Company advocatesand creates a management culture of unity, hard work, innovation and enterprising within the Company. At thesame time, the Company attaches great importance to and vigorously promote the system, management systemand compliance system construction, adhere to the rule of law, scientific and rigorous, efficient and orderlystandardized management, and through fine, standardized management guidance, for the Company to tap theinternal potential and actively seek external opportunities to lay a good foundation.
2. Professional and enterprising technical personnel. With more than 30 years of hard work and influence in thegas turbine power generation industry, the Company have recruited and trained a number of technical experts andprofessionals in the gas turbine power generation industry and accumulated rich experience in the field of gasturbine power station construction and operation management. In order to meet the market situation of furtherpromoting the reform of electricity market in Guangdong Province, the Company has set up a professionalelectricity marketing team to study electricity trading strategies and build mathematical model of electricity
marketing. The rich experience accumulated in the aspect of electricity marketing has laid a solid foundation forthe Company to participate in developing new electric power market and integrate in the tide of reform ofelectricity market. In addition, the Shen Nan Dian Engineering Company has provided technical advice,commissioning, and operation assurance for dozens of domestic and overseas gas turbine power stations. Thecompany's training center has successively undertaken the technical personnel training business for dozens ofdomestic and foreign power stations. It has become a well-known professional talent training base in the domesticgas turbine industry and establish a good reputation and professional brand image in the same industry.
3. Professional and technical level that keeps pace with the times. The company has a number of independentutility model patents and software copyrights, jointly drafted a national standard, and a number of inventionpatents are under review by the China National Intellectual Property Administration. On December 23, 2021, theCompany was recognized by the Shenzhen Municipal Accreditation Administration as the second batch of high-tech enterprises in 2021, and the Company's scientific research and innovation work was unanimously recognizedby the society. During the reporting period, the Company has applied to the State Intellectual Property Office for14 utility model patents in total, of which 12 have been authorized. The total number of authorized patents of theCompany has reached 38 (including 4 invention patents) with 8 software copyrights, which greatly improved theCompany's brand image and industry competitiveness.
4. Rich experience in industrial exploration. The Company gives full play to its own advantages, accumulatesexperience in the construction and operation of new energy industries such as electrochemical energy storage andPV, and actively explores scientific and technological projects such as virtual power station platforms. NanshanThermal Power Station, a subsidiary of the Company, has filled the domestic gap in the application of energystorage system in the field of “black start” for 9E-class unit after technical transformation. Through the successfuloperation of black-start projects, the preliminary work of independent energy storage power plants and theconstruction and operation of PV projects, the Company has accumulated certain experience in the preliminarypreparation, construction, commissioning, operation and maintenance of energy storage projects, and trained anumber of professionals. In addition, with the talent accumulation and technical advantages of traditionalelectricity industry, the Company will continue to rely on the electric power market and technical strength to tapthe stock potential. To enter the new energy service field reserves the technology and talent, has laid a solidfoundation.
5. Leading environmental protection. The generator units of our power stations are all gas-fired units, which usenatural gas as the fuel. The CO
emission in flue gas is about 42% of that of coal-fired power stations, whichprovides strong support for the goal of CO
emissions peaking and carbon neutrality of China. In accordance withthe “Shenzhen Blue” Sustainable Action Plan for 2018 of the People's Government of Shenzhen, the Companyhas fully completed the “Shenzhen Blue” renovation of the #3, #10 and #1 combustion engines of NanshanThermal Power Station, after which the nitrogen oxides emissions of each unit were reduced to below 15 mg/m
,reaching the world's most advanced level. After the renovation, the nitrogen oxides emission of each unit has beenreduced to below 15 mg/m3, reaching the most advanced level in the world, and Nanshan Thermal Power Stationhas been selected as the best power station by Power Magazine, the most authoritative magazine in the globalelectricity industry since 1882.IV. Analysis of main businessesI. OverviewIn 2022, the 20th National Congress of the Communist Party of China was held, and it is also an extraordinaryyear in the development of Shen Nan Dian. In the face of complex and severe external situations such as therepeated Covid-19 epidemic, fierce competition in the electric power market, high fuel prices, and seriousinversion of power generation cost and selling price, the Company actively implemented the power supplyguarantee decision deployment, faithfully fulfilled the social responsibilities of power supply from a high politicalposition, ensured that unit should be fully developed, and has made outstanding contributions to the successfulconvening of the “the 20th National Congress of the Communist Party of China”and to alleviatingthe electricity shortage in Shenzhen, Guangdong Province. During the reporting period, the Company's NanshanThermal Power Station and Zhongshan Nanlang Power Plant actually completed 858 million kWh of net energyoutput, with an average annual utilization rate of 946 hours and an average annual plant electricity consumptionrate of 3.5% for the generating units of the two power stations. Medium and long-term contract electricity ofNanshan Thermal Power Plant and Zhongshan Nanlang Power Plant in 2022, such as annual purchasing andmarket electricity, totalled 1.441 billion kWh.
During the reporting period, the main work carried out by the Company is as follows:
1. Safety and environmental protection met the standard, and won the gold medal for generator units. In 2022, theCompany paid close attention to the implementation of the main responsibility of work safety, promoted riskgrading and control and team safety construction, promoted the continuous improvement of standardization ofwork safety, three-year action of special rectification of safety production, safety culture construction and otherspecial work, made every effort to solve all kinds of risks and hidden dangers, continuously strengthened thefoundation of work safety, fully completed the safety assessment indicators and the tasks of pollution reduction,and continued to maintain a stable work safety situation and the “five-free”safety target. By December 31, 2022,the Company had achieved 6,818 days of work safety accumulatively, without any environmental pollutionaccident or any work safety liability accident. The Company's Nanshan Thermal Power Station has completed 800million kWh of net energy output throughout the year without any unplanned outage caused by the unit. In theannual selection of 47 power stations directly transferred by Shenzhen Power Grid, Nanshan Thermal PowerStation has won the honorary title of “Shenzhen Power Grid Advanced Power Generation Collective in 2022”with excellent performance. The #10 and #11 units of the power station won the honorary title of “ShenzhenPower Grid 2022 Annual Gold Generating Unit”.
2. Improve quality, reduce costs and increase the operating efficiency of power generation assets. Despite theextremely unfavorable external environment, the Company tried its best to take effective measures to improveeconomic efficiency. First, electricity marketing for efficiency. The Company observed the requirements of thenew spot trading model in the electric power market, dynamically adjusted its power marketing strategy, andscientifically and reasonably implemented power trading. Nanshan Thermal Power Station has always been at theleading level of similar power stations in the Shenzhen region in terms of annual average settlement of on-gridelectricity prices. Secondly, state-owned enterprises coordinate to reduce costs. The Company took the initiativeto strengthen the communication with upstream suppliers, strengthen the synergy of state-owned enterprises andstate-owned assets, broaden the fuel procurement channels, bring the advantages of group procurement into fullplay, guarantee the matching of electricity generation gas and electricity, and reduce the fuel procurement cost.Third, the implementation of compensation to reduce losses. Through channels such as the Guangdong ProvinceElectricity Industry Association's Special Committee on Combustion Engines, the Company actively reflected itsreasonable demands to the relevant government departments and made every effort to promote the introduction ofrelevant policies. During the reporting period, the Company obtained annual contract cost relief compensation andvariable cost compensation, which reduced its main business losses. Fourthly, the Company closely tracked theVAT retention tax refund policy and applied for a full refund of RMB 330 million of retained VAT credits, whichgreatly eased the pressure on the Company's liquidity. Fifthly, the Company adjusted the financing and liquiditymanagement strategies at the right time to prevent investment and liquidity risks and optimize debt structure.
3. Optimize asset allocation, and explore the expansion and upgrading of stock business. Start the systematicsorting of stock assets and comprehensive analysis of stock business, optimize asset allocation and carry outbusiness integration. Firstly, start the shutdown and decommissioning of two 9E gas turbines of Shen Nan DianZhongshan Company, in order to revitalize assets, reduce losses and relieve financial pressure. Secondly,concentrate the advantages of the Company's electricity technical talents, build an efficient maintenance businessintegration platform, utilize the project development and management experience of Shen Nan Dian EngineeringCompany to cultivate new profit growth points while striving to reduce the cost and increase the efficiency of thestock business. Thirdly, we will speed up efforts to explore and make plans for virtual power stations, smart PVand other frontiers. We will sign the Cooperation Agreement on Virtual Power Station Construction with theShenzhen Virtual Power Station Management Center, and establish cooperative relations in deepening thedevelopment of the Shenzhen virtual power station comprehensive demonstration projects to seek opportunities inthe visual power station business. The fourth is to rely on the strong support of shareholders, actively conductinvestment and merger, seek project opportunities, and explore new paths of transformation and development.
4. Improve the management mechanism and enhance the Company's internal development momentum. With thegoal of improving the Company's standardized and refined management level and strengthening the Company'sinternal management, the first is to vigorously promote the construction of institutional systems, optimizemanagement processes, and improve the standardization level of investment, procurement, finance, humanresources and administrative logistics management. Meanwhile, the compliance system construction will belaunched in an all-round way, and the foundation of normative development of the Company will be consolidatedthrough the compliance system construction. Secondly, optimize the organizational structure, strengthen theconstruction of talent team, and strengthen cadre management and assessment. At the same time, the work ofdetermining posts and staffing will be started, and a system of division of duties will be formed in which
personnel and posts will be matched, and each will assume its own responsibilities and fulfill its own dutiesthrough a comprehensive review of organizational structure, post responsibilities and staffing. Thirdly, constructthe concept of performance-oriented assessment, and explore the market-oriented incentive mechanism. Optimizethe salary distribution principle based on the assessment, improve schemes and measures for the performanceassessment, and establish a results-oriented performance assessment and incentive mechanism. At the same time,explore the employee co-investment mechanism to stimulate the team's innovation vitality and combateffectiveness through benefit sharing and risk sharing.
5. Anchor the transformation route and accelerate the transformation and upgrade of business. During thereporting period, the Company initiated the preparation of the “14th Five-Year Plan” based on the latest nationalindustrial policy guidance and the actual situation of the Company, and clarified the strategic direction and path ofthe Company. We have clearly defined the strategic direction and path of focusing on the new energy industry,stimulating the vitality of stock assets through technological innovation and industrial upgrading, and seeking thedriving force for sustained development through high-quality projects in the new energy field. Strive to promotethe transformation and upgrading of the Company in the wave of reform of electricity market, new energy andenergy storage industry development.In 2022, the operating income of the Company was RMB 694 million. The net profit attributable to shareholdersof the listed company was RMB -160 million and the basic earnings per share was RMB -0.2657.II. Income and cost
(1) Composition of the operating income
Unit: RMB
| 2022 | 2021 | Increase/decrease YoY | |||
| Amount | Ratio in operating income | Amount | Ratio in operating income | ||
| Total operating income | 694,227,657.28 | 100% | 757,175,743.41 | 100% | -8.31% |
| By industry | |||||
| Energy industry | 650,670,587.61 | 93.73% | 708,883,313.18 | 93.62% | -8.21% |
| Engineering service | 41,945,102.65 | 6.04% | 43,685,185.43 | 5.77% | -3.98% |
| Sludge drying | 0.00 | 0.00% | 3,388,263.75 | 0.45% | -100.00% |
| Others | 1,611,967.02 | 0.23% | 1,218,981.05 | 0.16% | 32.24% |
| By product | |||||
| Sales of electricity | 650,670,587.61 | 93.73% | 708,883,313.18 | 93.62% | -8.21% |
| Engineering service | 41,945,102.65 | 6.04% | 43,685,185.43 | 5.77% | -3.98% |
| Sludge drying | 0.00 | 0.00% | 3,388,263.75 | 0.45% | -100.00% |
| Others | 1,611,967.02 | 0.23% | 1,218,981.05 | 0.16% | 32.24% |
| By region | |||||
| Domestic | 694,227,657.28 | 100.00% | 757,175,743.41 | 100.00% | -8.31% |
| Sales model | |||||
| Direct sales | 694,227,657.28 | 100.00% | 757,175,743.41 | 100.00% | -8.31% |
(2) The industries, products, regions or sales model accounting for over 10% of the Company’s operatingrevenue or operating profit?Applicable □Not applicableThe Company shall comply with the relevant disclosure requirement for electricity-related industries of ShenzhenStock Exchange Self-Regulatory Guidelines for Listed Companies No.3 - Disclosure of Industry Information.
Unit: RMB
| Operating income | Operating costs | Gross margin | Increase or decrease in operating income year-on-year | Increase or decrease in operating costs year-on-year | Increase or decrease in gross profit margin year-on-year | |
| By product | ||||||
| Sales of electricity | 650,670,587.61 | 779,733,245.77 | -19.84% | -8.21% | -4.48% | -4.69% |
| By region | ||||||
| Domestic | 694,227,657.28 | 804,679,323.48 | -15.91% | -8.31% | -5.36% | -3.62% |
Reasons for great changes in relevant financial indicators
□Applicable ?Not applicable
(3) Income from physical sales larger than income from labors
?Yes □ No
| Industry classification | Item | Unit | 2022 | 2021 | Increase/decrease YoY |
| Electricity | Sales volume | 100 million kWh | 8.58 | 11.44 | -25.00% |
| Output | 100 million kWh | 8.60 | 11.48 | -25.09% | |
| Inventory | 100 million kWh | 0.00 | 0.00 | 0.00% |
Reasons for a y-o-y changes of 30% or more in relevant data
□Applicable ?Not applicable
(4) Performance of major sales contracts and major procurement contracts signed by the Company up tothe reporting period
□Applicable ?Not applicable
(5) Composition of operating costs
Industry and product classification
Unit: RMB
| Industry classification | Item | 2022 | 2021 | Increase/decrease YoY | ||
| Amount | Shared percentage of operating costs | Amount | Shared percentage of operating costs | |||
| Energy | Electricity | 779,733,245.77 | 96.90% | 816,273,176.20 | 96.00% | -4.48% |
| industry | ||||||
| Engineering service | Engineering cost | 24,687,143.61 | 3.07% | 28,002,979.56 | 3.29% | -11.84% |
| Sludge drying | Sludge treatment | 5,414,557.67 | 0.64% | -100.00% | ||
| Other | Depreciation of investment property | 258,934.10 | 0.03% | 569,945.97 | 0.07% | -54.47% |
Unit: RMB
| Product category | Item | 2022 | 2021 | Increase/decrease YoY | ||
| Amount | Shared percentage of operating costs | Amount | Shared percentage of operating costs | |||
| Sales of electricity | Power supply | 779,733,245.77 | 96.90% | 816,273,176.20 | 96.00% | -4.48% |
| Engineering service | Engineering cost | 24,687,143.61 | 3.07% | 28,002,979.56 | 3.29% | -11.84% |
| Sludge drying | Sludge treatment | 5,414,557.67 | 0.64% | -100.00% | ||
DescriptionThe main component of the Company's operating cost is natural gas, and the Company's natural gas cost willaccount for 82.17% of the operating cost in 2022; In 2021, the Company's natural gas costs accounted for 77.37%of the operating costs.
(6) Changes in the scope of consolidation in Reporting Period
□ Yes ?No
(7) Major changes or adjustment in business, product or service of the Company in Reporting Period
□Applicable ?Not applicable
(8) Main sales clients and main suppliers
Main sales clients of the Company
| Total top five clients in sales (RMB) | 692,413,282.42 |
| Proportion in total annual sales volume for top five clients | 99.74% |
| Ratio of sales from related parties to total annual sales among the top five customers | 0.00% |
Information of top five clients of the Company
| No. | Name | Sales (RMB) | Proportion in total annual sales |
| 1 | Shenzhen Power Supply Bureau Co., Ltd. | 632,065,666.91 | 91.05% |
| 2 | China Machinery Engineering Corporation | 35,820,448.07 | 5.16% |
| 3 | Guangdong Power Grid Co., Ltd. | 18,619,522.44 | 2.68% |
| 4 | Sinohydro Engineering Bureau 8 Co., Ltd. | 3,030,645.00 | 0.44% |
| 5 | POWERCHINA Hubei Electric Power Construction Co., Ltd. | 2,877,000.00 | 0.41% |
| Total | -- | 692,413,282.42 | 99.74% |
Other information of main clients
□Applicable ?Not applicable
Main suppliers of the Company
| Total purchase amount from top five suppliers (RMB) | 740,818,393.99 |
| Proportion in total annual purchase amount for top five suppliers | 95.97% |
| Ratio of related party purchases among the top five suppliers' purchases to total annual purchases | 0.00% |
Information of top 5 suppliers of the Company
| No. | Name | Purchase amount (RMB) | Proportion in total annual purchases |
| 1 | Shenzhen Gas Group Co., Ltd. | 603,204,670.45 | 78.14% |
| 2 | Guangdong Branch of CNOOC Gas Power Group Co., Ltd. | 107,758,470.83 | 13.96% |
| 3 | Shenzhen Power Supply Bureau Co., Ltd. | 18,388,325.37 | 2.38% |
| 4 | Shenyang LSE Power Service Co., Ltd. | 6,090,561.29 | 0.79% |
| 5 | Shenzhen Water (Group) Co., Ltd. | 5,376,366.05 | 0.70% |
| Total | -- | 740,818,393.99 | 95.97% |
Other information of main suppliers
□Applicable ?Not applicable
3. Expenses
Unit: RMB
| 2022 | 2021 | Increase/decrease YoY | Notes to significant changes | |
| Selling and distribution expenses | 375,055.78 | 928,661.79 | -59.61% | The decrease was mainly due to the decrease in sales development demand due to the re-routing of municipal sludge treatment environmental protection business. |
| G&A expenses | 79,099,350.54 | 103,286,926.69 | -23.42% | Mainly due to decrease in labor costs and intermediary fees |
| Financial expenses | 32,142,802.50 | 15,212,737.67 | 111.29% | Mainly due to the increase in the average annual financing scale |
| R&D expenses | 25,647,534.39 | 20,933,712.98 | 22.52% | Mainly due to the increase in R&D expenses of Shen Nan Dian Engineering Company |
4. R&D input
?Applicable □Not applicable
| Projects | Purpose | Progress | Goals to be achieved | Expected impact on the future development of the Company |
| Research and development of AGC control technology for combined cycle unit of PG9171E gas turbine | AGC control strategy of existing gas-steam combined cycle units generally adopt power control mode. Power closed-loop control is used in the control system of the units. When the units are put into primary frequency modulation and AGC function, the direction of load command change of AGC is inconsistent with that of load command change required by primary frequency modulation. Through research and development, we can solve the above problems and improve the timeliness and accuracy of the unit's response to the load change. | Completed | Improve the timeliness and accuracy of power generation, effectively enhance safety productivity, and improve the technological content and core competitiveness of the Company's products and services. | |
| Research and Development on Operation Reliability of Gas Turbine Main Lubricating Tank Fan | By adding a set of standby fan, upgrading the control program and HMI screen, the fan has the functions of pre-selection, manual switchover and on-line automatic switchover. | Completed | Improve the performance, safety and reliability of the equipment, and improve the technological content and core competitiveness of the Company's products and services. | |
| Research and Development of Domestic Technology for Hot Air System of Gas Turbine Enclosed Busbar | Domestic technology research on hot air system of gas turbine seal bus is carried out to eliminate system defects and faults, improve equipment operation reliability, concurrently reduce personnel inspection, operation and | Completed | Optimize and improve the performance, safety reliability and economy of the equipment, and enhance the technological content |
| maintenance workload, and save costs. | and core competitiveness of the Company's products and services. | |||
| Research and development on technical upgrading of excitation devices for steam combined cycle power generation units | With the upgrading of power generation equipment, the State Grid has increasingly raised technical requirements for the performance of power generation equipment, and the relevant parameters of the original excitation equipment cannot meet the requirements of the current State Grid. Through technological upgrading research and development, improve the performance of the excitation device and meet the requirements of the national grid. | Completed | Deeply study and improve the performance of the equipment, improve the efficiency of the operation, and improve the technological content and core competitiveness of the Company's products and services. | |
| Research and development of cooling air stability of PG9171E gas engine cylinder block | Through the stable balance adjustment of the cooling air of the gas turbine cylinder block, the improvement and modification of the control program and the reasonable adjustment of the wind direction measurement position and measurement method, the stability of the cooling air of the gas turbine cylinder block is improved. | Completed | Deeply study the operating mechanism, optimize and improve the control mode, improve the operation safety and reliability, and improve the technological content and core competitiveness of the Company's products and services. | |
| Research and development of the reliability of drain flash tank for steam turbine of combined circulator unit | The long running time of drain flash tank of steam turbine unit leads to failure to completely deal with the gas etching and flashing and other defects in the system, which also leads to obvious noise pollution from the flash tank during startup and stop of the unit. In order to eliminate the above undesirable effect, research and development of the reliability of drain flash tank has been conducted, which effectively reduces noise, as well as adverse effect made on environment by equipment running. | Completed | Develop new technologies actively to reduce the adverse impact of operation and improve the core competitiveness and technology content of the Company product and service. |
| Research and Development of Demand Side Response Technology for Black Start Energy Storage System | The black start energy storage system, as the power supply point of a power plant during black start, is usually in a standby state. By adding new devices and technical modifications, it adjusts the structure of auxiliary power, achieves the function of grid demand side response, improves economic efficiency, and assists in the "dual carbon" goal. | Completed | Improve economic efficiency, assist in the "dual carbon" goal, and enhance the technological content and core competitiveness of the company's products and services | |
| Technical Research and Development on Reducing Corrosion of the Tail Heating Surface of the Waste Heat Boiler in Steam Combined Cycle Units | Through equipment modification of the existing traditional waste heat boiler condensate heater, a condensate heater recirculation pump and system equipment are installed to improve the inlet water temperature of the condensate heater above the dew point temperature of the existing waste heat boiler, and to prevent condensation and corrosion on the surface of the tail heat exchanger. | Completed | Optimize and improve equipment performance, improve equipment operation safety and reliability, and enhance the technological content and core competitiveness of the company's products and services | |
| Research and Development of Energy Storage Assisted Frequency Modulation Technology for Combined Cycle Units | With the implementation of the grid spot market policy and the continuous improvement of the penetration rate of new energy, the demand for frequency modulation mileage in the grid will significantly increase, and the demand for frequency modulation units to participate in AGC response will also increase; The energy storage auxiliary frequency modulation system can accurately respond to power frequency modulation, solving the shortcomings of traditional units such as slow regulation speed, turnback delay, and large errors. It can also enable the generator unit to maintain stable operation while significantly improving frequency modulation performance, improving the safety of unit operation adjustment, and bringing economic benefits to the unit. | Completed | It improves the safety of unit operation adjustment, brings economic benefits to the unit, and enhances the technological content and core competitiveness of the company's products and services |
R&D personnel
| 2022 | 2021 | Change proportion | |
| Number of R&D personnel (person) | 71 | 72 | -1.39% |
| Proportion of R&D personnel | 18.59% | 18.37% | 0.22% |
| Educational background | |||
| Bachelor | 34 | 32 | 6.25% |
| Master | 1 | 2 | 50.00% |
| Others | 36 | 38 | -5.26% |
| Age composition | |||
| Under 30 | 6 | 5 | 20.00% |
| 30-40 | 8 | 15 | -46.67% |
| Over 40 | 57 | 52 | 9.62% |
R&D input
| 2022 | 2021 | Change proportion | |
| Amount of R&D input (RMB) | 25,647,534.39 | 20,933,712.98 | 22.52% |
| Ratio of R&D input to operating income | 3.69% | 2.76% | 0.93% |
| Capitalization amount of R&D input (RMB) | 0.00 | 0.00 | 0.00% |
| Ratio of capitalized R&D input to R&D input | 0.00% | 0.00% | 0.00% |
Reasons for and effects of significant changes in R&D personnel composition of the Company
□Applicable ?Not applicable
Reasons for significant changes in the proportion of total R&D input in operating income compared to last year
□Applicable ?Not applicable
Reasons and their reasonableness statement for significant changes in the capitalization rate of R&D input
□Applicable ?Not applicable
V. Cash flows
Unit: RMB
| Item | 2022 | 2021 | Increase/decrease YoY |
| Sub-total of cash inflows from operating activities | 1,141,649,432.06 | 915,970,557.14 | 24.64% |
| Sub-total of cash outflows from operating activities | 934,481,029.80 | 955,228,859.21 | -2.17% |
| Net cash flows from operating activities | 207,168,402.26 | -39,258,302.07 | 627.71% |
| Sub-total of cash inflows | 178,535,035.18 | 85,113,274.87 | 109.76% |
| from investing activities | |||
| Sub-total of cash outflows from investing activities | 283,315,286.80 | 246,736,667.99 | 14.82% |
| Net cash flows from investing activities | -104,780,251.62 | -161,623,393.12 | 35.17% |
| Sub-total of cash inflows from financing activities | 1,089,969,316.66 | 1,061,074,323.80 | 2.72% |
| Sub-total of cash outflows from financing activities | 1,234,410,158.23 | 935,063,124.20 | 32.01% |
| Net cash flows from financing activities | -144,440,841.57 | 126,011,199.60 | -214.63% |
| Net increase in cash and cash equivalents | -41,582,961.53 | -74,996,638.62 | 44.55% |
Description of main factors affecting significant year-on-year changes in relevant data?Applicable □Not applicable
1. The net cash flows from operating activities increased by 627.71% year on year, mainly due to the VAT refundof RMB 330 million received;
2. The cash inflow from investing activities increased by 109.76% year on year, mainly due to the increase in therecovery of wealth management products;The net cash flows from investing activities increased by 35.17% year on year, mainly due to the increase in netwithdrawal of financial products;
4. Cash outflows from the financing activities increased by 32.01% year on year, mainly due to the increase inrepayment of bank loans.
5. The net cash flows from financing activities decreased by 214.63% year on year, mainly due to the increase inrepayment of financing.
6.The net increase in cash and cash equivalents increased by 44.55% year on year, mainly due to the net increasein cash from operating activities and investing activities greater than the net decrease in cash from financingactivities.Explanation of the reasons for the significant difference between the net cash flow from operating activities andthe net profit for the year of the Company during the reporting period?Applicable □Not applicableDuring the year, the Company received RMB 330 million in retained VAT refunds.V. Analysis of non-main businesses?Applicable □Not applicable
Unit: RMB
| Amount | Ratio in total profit | Reasons | Whether it is sustainable | |
| Investment income | 70,717,321.61 | -38.10% | Mainly financial income | No |
| Asset impairment | 8,946,433.92 | 4.82% | Provision for fixed assets, inventory falling price reserves and provision for | No |
| impairment of projects under construction of this year | ||||
| Non-operating income | 39,600.00 | -0.02% | Received the epidemic prevention and disinfection subsidies | No |
| Non-operating expenses | 2,191,784.23 | 1.18% | Mainly losses on write-off of fixed assets | No |
VI. Analysis of assets and liabilities
1. Significant changes in the composition of assets
Unit: RMB
| End of 2022 | Early 2022 | Increase/decrease in proportion | Notes to significant changes | |||
| Amount | Ratio in total assets | Amount | Ratio in total assets | |||
| Cash and cash equivalents | 675,496,266.40 | 25.92% | 689,604,633.59 | 24.72% | 1.20% | |
| Accounts receivable | 135,833,492.64 | 5.21% | 73,610,161.02 | 2.64% | 2.57% | |
| Contract assets | 217,009.58 | 0.01% | 1,040,000.00 | 0.04% | -0.03% | |
| Inventories | 85,279,298.35 | 3.27% | 88,500,991.13 | 3.17% | 0.10% | |
| Investment properties | 1,833,344.20 | 0.07% | 2,009,051.80 | 0.07% | 0.00% | |
| Long-term equity investments | 83,496,098.24 | 3.20% | 6,986,655.19 | 0.25% | 2.95% | |
| Fixed assets | 591,290,204.31 | 22.69% | 643,256,398.30 | 23.06% | -0.37% | |
| Construction in process | 4,861,062.16 | 0.19% | 6,088,768.51 | 0.22% | -0.03% | |
| Right-of-use assets | 7,707,617.90 | 0.30% | 0.00 | 0.00% | 0.30% | |
| Short-term borrowings | 879,957,857.44 | 33.76% | 858,444,163.25 | 30.77% | 2.99% | |
| Long-term borrowings | 28,019,758.68 | 1.08% | 0.00 | 0.00% | 1.08% | |
| Lease liabilities | 2,262,160.03 | 0.09% | 0.00 | 0.00% | 0.09% | |
| Financial assets held for trading | 440,013,571.10 | 16.88% | 632,874,406.39 | 22.68% | -5.80% | Mainly due to the decrease in purchase of |
| financial products | ||||||
| Other current assets | 188,248,840.44 | 7.22% | 331,868,661.62 | 11.89% | -4.67% | |
| Other investments in equity instruments | 300,615,000.00 | 11.53% | 200,615,000.00 | 7.19% | 4.34% | |
| Other payables | 22,997,466.80 | 0.88% | 62,678,254.02 | 2.25% | -1.37% |
High proportion of overseas assets
□Applicable ?Not applicable
2. Assets and liabilities measured in fair value
?Applicable □Not applicable
Unit: RMB
| Item | Opening balance | Changes in fair value profit and loss in current period | Cumulative changes in fair value included in equity | Impairment accrued in the current period | Purchase amount in the current period | Sales amount in the current period | Other changes | Ending balance |
| Financial assets | ||||||||
| 1. Financial assets held for trading (excluding derivative financial assets) | 632,874,406.39 | 119,987,155.29 | 72,873,680.00 | 440,013,571.10 | ||||
| 2. Derivative financial assets | 0.00 | 0.00 | ||||||
| 3. Other creditors' investments | 0.00 | 0.00 | ||||||
| 4. Other investments in equity instruments | 200,615,000.00 | 100,000,000.00 | 300,615,000.00 | |||||
| Total | 833,489,406.39 | 100,000,000.00 | 119,987,155.29 | 72,873,680.00 | 740,628,571.10 | |||
| Financial liabilities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
Contents of other changes
The accounting method of investment for Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. in thecurrent year is changed from financial assets held for trading to long-term equity investments by accounting byequity method.Whether there are significant changes in the measurement attributes of the Company's main assets during thereporting period
□ Yes ?No
3. Restrictions on asset rights as at the end of the reporting period
| Item | Ending balance | Balance at the end of last year |
| Margin of bank acceptance bills | 27,474,594.34 | |
| Total | 27,474,594.34 |
VII. Analysis of investment
1. Overall situation
?Applicable □Not applicable
| Investment amount during the reporting period (RMB) | Investment amount in the same period last year (RMB) | Changes (+,-) |
| 100,000,000.00 | 191,831,197.00 | -47.87% |
2. Significant equity investments acquired during the reporting period
?Applicable □Not applicable
Unit: RMB
| Name of the investee | Main business | Form of investment | Investment amount | Shareholding ratio | Capital source | Partner | Time horizon | Product type | Progress as on the balance sheet date | Expected earnings | Current investment profit and loss | With lawsuit involved (Y/N) | Date of disclosure (if any) | Disclosure index (if any) |
| Shenzhen Yuanzhi Ruixin New Generation IT Private Equity Investment Fund Partnership (Limited Partne | Investment fund | Newly established | 100,000,000.00 | 20.00% | Own fund | Shenzhen Capital Holdings Co., Ltd., Shenzhen Luohu Guidance Fund Investment Co., Ltd., Shenzhen Kunpeng | Six years. | Limited partnership | Completed investment of RMB100 million | Not applicable | 0.00 | No | March 7, 2020 | Announcement name: Announcement on Investment in Shenzhen Yuanzhi Ruixin New Generation IT Private Equity Investment and Related |
| rship) | Equity Investment Management Co., Ltd., Shenzhen Yuanzhi Ruixin Equity Investment Management Co., Ltd. | Transaction; Announcement No.: 2020-007; Disclosure media: China Securities Journal, Securities Times, Hong Kong Commercial Daily and CNINF. | ||||||||||||
| Total | -- | -- | 100,000,000.00 | -- | -- | -- | -- | -- | -- | -- | 0.00 | -- | -- | -- |
3. Ongoing significant non-equity investments during the reporting period
□Applicable ?Not applicable
4. Investment in financial assets
(1) Securities investment
□Applicable ?Not applicable
The Company had no securities investments during the reporting period.
(2) Investment in derivatives
□Applicable ?Not applicable
The Company had no derivative investment during the reporting period.
5. Usage of the funds raised
□Applicable ?Not applicable
There was no use of capitals raised during the reporting period.VIII. Sales of major assets and equities
1. Sales of major assets
□Applicable ?Not applicable
The Company did not sell major assets during the reporting period.
2. Sales of major equities
□Applicable ?Not applicable
IX. Analysis of major controlling and joint-stock companies?Applicable □Not applicableThe condition of subsidiaries or joint-stock companies that affect more than 10% of the net profit of the Company
Unit: RMB
| Name | Type | Main business | Registered capital | Total assets | Net assets | Operating income | Operation profit | Net profit |
| Shenzhen New Power Industrial Co., Ltd. | Subsidiaries | Technology development of waste heat utilization (excluding restricted projects): power generation by waste heat utilization; Power generation by gas turbine. | RMB 113.85 million | 715,010,322.24 | 27,354,830.01 | 300,390,194.33 | -68,030,052.57 | -68,033,560.57 |
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | Subsidiaries | Lease of gas turbine power generation, waste heat power generation, power supply and heating (excluding heating network), wharfs, depots (excluding refined products, hazardous chemicals, inflammables and explosives) and electricity facilities; Lease of land use right; Lease of nonresidential real estate. | RMB 746.8 million | 259,825,639.14 | -500,798,349.77 | 18,619,522.44 | -110,841,787.19 | -111,394,129.17 |
Acquisition and disposal of subsidiaries during the reporting period
□Applicable ?Not applicable
Information of main holding and joint stock companiesX. Structured entities controlled by the Company
□Applicable ?Not applicable
XI. Prospects for the Company's future development(I) Analysis of the Company's operating situation in 2023In 2023, the Company will still face a complex operating situation in terms of production and operation. First, theprice of natural gas will still run at a high level. Although the impact of the Russian-Ukraine war on the energymarket will gradually weaken, and it is expected that natural gas purchase cost of the Company in 2023 maydecrease compared to 2022. However, given the current high price level of international energy, the overall pricelevel of natural gas is still not optimistic. Second, the Company's responsibility to ensure power supply remainsarduous. China's economic performance is expected to pick up in 2023, according to the Analysis and ForecastReport on the National Power Supply and Demand Situation in 2023 released by the China Electricity Council.For Guangdong Province, the maximum load is expected to be 155 million kW in 2023, with a year-on-year
growth of 8.8%. Social electricity consumption is 825 billion kWh, with a year-on-year growth of 5.2%. Thenewly installed capacity of 17 million kW in Guangdong Province is expected to be tight and balanced. Duringthe kurtosis summer and winter, the situation of power supply and demand will be tight in the southern region.The company still shoulders the responsibility and pressure to keep the power supply. Third, the electricitymarketing market competition is still fierce. After Guangdong Province fully enters the trial operation of theelectricity spot market, due to system design reasons, it is difficult to truly implement policies such as “gas-electricity linkage” and two-part electricity pricing in the short term. The continuously high fuel cost of gas-firedpower generation companies cannot be effectively transmitted downstream, resulting in the inversion of powergeneration income, and power generation cost will still be the norm. The average energy consumption of theCompany's owned 9E combustion turbines is more than 10% higher than that of the 9F and 9H units, making evenmore losses in the increasingly competitive electricity spot market.In the face of pressures and challenges, the Company strives to seek new opportunities under the situation of high-quality development. In order to encourage the development of the energy storage industry under the goals of“carbon peaking and carbon neutrality”， the Guiding Opinions on Accelerating the Development of New EnergyStorage issued by the National Development and Reform Commission and the National Energy Administrationspecify that by 2025, new energy storage will be transformed from the initial stage of commercialization to large-scale development; By 2030, the comprehensive marketization of new energy storage will be realized. Accordingto Guangdong Province's 14th Five-Year Plan, more than 2 million kW of the power generation side, powertransformation side, user side and independent frequency modulation energy storage will be built by 2025, and theelectricity's demand-side response capacity will reach about 5% of the maximum load by 2025. The Notice of theGeneral Office of the People's Government of Guangdong Province on Printing and Distributing the GuidingOpinions on Promoting the High Quality Development of New Energy Storage Industry in Guangdong Provinceand Several Measures of Shenzhen to Support the Accelerated Development of Electrochemical Energy StorageIndustry issued in 2023 also make it clear that it will vigorously support the development of the energy storageindustry. At present, the Company is implementing independent energy storage, construction, transportation,management and maintenance smart platform. The PV and other new energy industry upgrading projects are inline with the latest national and provincial and municipal policy guidance. The company will seize the greathistorical opportunity of the leap-forward development of new energy, change from the passive survival to anactive development, and spare no pains to promote the Company's high-quality development(II) Summary of the Company's Business Plan for 20232023 is the first year to fully implement the Party's spirit of the 20th National Congress of the Communist Party ofChina, and high-quality development is the top priority for building a modern socialist country in an all-roundway. The Company still faces great challenges on operation and development, such as fierce competition in theelectric power market, high natural gas prices, inversion of power generation cost and electricity prices, andincreasing contradiction between supply and demand. In the face of severe external environment, the Company,aiming at promoting its high-quality development, deployed the overall work idea of 2023 with one core, twoobjectives, three foundations and six special action plans. The Company will lead all employees to closely focuson six special action plans, face challenges, work hard, and strive to create a new situation of turnaround, strategictransformation and high-quality development.
1. Adhere to the bottom line of safety and complete the power supply guarantee task with high standard. Firstly,firmly establish the concept of “safe development”, adhere to the people's supremacy and life's supremacy, andconsolidate the foundation of enterprise development. Vigorously promote the continuous improvement ofhierarchical risk management and control, team safety construction and standardization of work safety, focus onstrengthening equipment and facilities management and operation process control management, effectively carryout the “three simultaneous” work of safety facilities from design, construction to production and operation ofnew projects of the Company's transformation and development, fully implement the main responsibility systemfor work safety and the responsibility system for work safety of all employees, effectively prevent safety risks,and ensure the all-round “great safety” of the Company. Secondly, the task of protecting power supply to a highstandard shall be fulfilled and the concept of ecological development shall be practiced. Raise political sense,perform the social responsibilities of state-owned enterprises, spare no effort to ensure the safety of power supplyduring major events and important periods, strictly implement various energy-saving and emission reductionmeasures, and ensure the normal operation of environmental protection facilities and equipment. While ensuringthe discharge of various pollutants up to the standards, the level of energy consumption in production shall beconstantly reduced, and the goal of “double carbon” shall be achieved.
2. Based on stock assets, make every effort to reduce losses and increase profits. Activate stock resources, deeplytap potentialities, and consolidate the foundation for transformation and upgrade. First, Shen Nan Dian ZhongshanCompany will actively seek the support of government functional departments on the basis of the application forshutdown and decommissioning to be submitted in 2022 and strive to complete the suspension and withdrawal ofunit as soon as possible. Based on the advantages of land resources, carry out the follow-up transformation work,and provide support for the Company's strategic focus and expansion of new business areas. Second, Shen NanDian Engineering Company to strengthen the collection of accounts receivable, continue to explore and seizedomestic and foreign markets, and actively develop new gas turbine projects; At the same time, the Companyshall give full play to the talent advantage after the integration of overhaul business, and constantly develop theexternal electricity overhaul market. Thirdly, Shen Nan Dian Environment Protection Company takes advantagesof its existing skills and talents to explore the establishment of a power distribution company to participate in thetrade in electric power market, and actively promote the construction of a data center and the preliminary work ofthe virtual power station, aiming at the integration of source network, charge and storage to build a comprehensiveenergy service provider. Fourthly, Server Company will make full use of the depot resources, actively revitalizethe assets of the depot, seek business opportunities, and continue to promote the reconstruction of Huidong Serverdocks in order to achieve the appreciation and efficiency enhancement of the stock assets. Fifthly, keep close eyeon the market, explore channels and reduce natural gas purchase cost. Continue to optimize our upstreamcooperation and take advantage of the price differentials of different gas sources to control natural gas purchasecost and match gas and electricity while ensure the supply of manufacturing gas requirement. Sixthly, strive forpolicy support. We will pay close attention to the policy orientation, actively report the difficulties to thegovernment, raise reasonable demands, promote the implementation of relevant subsidies, and strive to improvethe Company's electricity business.
3. Firmly plan strategic layout, and introduce increment to realize transformation and upgrade. Strengthenstrategic guidance, and unswervingly persist in transformation and development. The first is to further improvethe strategy and implementation path, plan actively around the new energy and energy storage industry chain,complete the preparation of the 14th Five-Year Plan, and form a forward-looking and feasible development planwith accurate positioning, reasonable objectives, clear path, and comprehensive guidance, which leads the nextphase of the Company's transformation. The second is to make full use of the platforms of the listed company, godeep into new energy, energy storage and other key industries, vigorously carry out mergers and acquisitions, andpromote the implementation of key projects. The third is to give full play to the Company's own advantages,expand and upgrade the existing business, and promote transformation and development with industrial upgrading:
make full use of the power point advantages of Nanshan Thermal Power Station, and actively promote theconstruction of the first phase of the independent energy storage power station project; Continuously promote theimplementation of “construction, operation, management and maintenance” intelligent platform projects;Accelerate the completion of the construction of smart PV projects, and strive for early production and incomegeneration; We will explore the new energy of integrated new energy power stations, distributed data centers, on-line monitoring of energy storage power stations, and virtual power station platforms.
4. Deepen standardized operation and improve the quality of corporate governance. Vigorously promote theconstruction of corporate governance system, compliance system and management system, and establish andimprove a standardized management system that complies with laws and regulations, is scientific and rigorous,efficient and orderly. The first is to optimize the corporate governance system. In accordance with regulatoryregulations and relevant requirements of state-owned and state-owned enterprises, strengthen the construction ofthe Company's legal person governance system, further improve the Company's legalperson governance system and process, clarify corporate governance responsibilities, adhere to the rule of law,standardize operations, and improve the Company's legal person governance level. Secondly, promotethe compliance system construction. According to the implementation plan of the Company's compliance systemconstruction, we will build a full-coverage and full-chain compliance management system with standardizedsystem in advance, dynamic supervision during the event and post supervision accountability, so as to effectivelyprevent compliance risks and ensure the Company's sustainable development. Thirdly, strengthen implementationand supervision. Continuously sort out, revise and improve the management systems of the Company, standardizeinternal management, and strengthen the inspection and assessment of the implementation of the systems, so as tocomprehensively improve the quality and level of management.
5. Build a solid foundation for the Party's construction and open up a new situation for the Party's construction.The Company will unswervingly take the study and implementation of Xi Jinping Thought on Socialism withChinese Characteristics for a New Era as the primary political task, continue to study and implement the spirit of
the 20th National Congress of the Communist Party of China and the spirit of the series of important speeches ofGeneral Secretary Xi Jinping, focus closely on the overall situation of production and operation development ofthe Company, firmly establish the work orientation of “focusing on party building and doing a good job of partybuilding to promote operation”, take party building and joint construction as the starting point, and promote the“double integration and double promotion” of party building and business. The Company will firmly maintain theauthority of the Party, take improving enterprise efficiency and enhancing enterprise competitiveness as thestarting point and foothold of the Party's organizational work, closely focus on the work goal of production andoperation with transformation and development led by the Party's construction, promote the implementation of theParty's leadership in all aspects from corporate governance to operation and development, effectively form a newwork pattern of “complementing the advantages of Party's construction, and coordinating and interacting withbusiness”, and strive to empower the Company with high-quality transformation and development through high-quality Party's construction.The business plan and relevant situation analysis set forth in this annual report do not constitute the Company'sperformance commitment to investors. The Company reminds investors to maintain due risk awareness,understand the difference between the business plan and performance commitment, and make prudent investmentdecisions.(III) Possible main risks and countermeasures
1. Main business: Since 2022, affected by multiple factors, two power stations under the Company experiencedtremendous pressure from rising fuel prices and lagging unit energy efficiency. With the continuous promotionand deepening of market-oriented transaction of Guangdong Province power market, 9E unit is facing difficultiesin profiting under the pressure of competition with more efficient and lower-cost units, and the situation of mainbusiness operation of the Company will be more severe. By continuously strengthening the management of thestock assets, the Company will actively respond to the demands and changes of the electric power market and tryits best to improve the profitability of its main business and the overall operating efficiency. At the same time, theCompany will focus on the new energy industry chain and actively explore diversified business models andopportunities to transform itself from a traditional power generator to a comprehensive energy service provider tocreate better conditions for the continuing operation and healthy development of the Company.
2. Under the market-oriented electricity generation model, power stations will face more flexible scheduling andstricter assessment, which will put forward higher demands on the operation and maintenance of the aging powerplants. The Company will, through the formulation of scientific and reasonable overhaul and technicaltransformation plans, invest corresponding funds and technical forces, continuously improve the level ofequipment maintenance and governance, implement the main responsibility of safety production, and ensure thesafe and stable operation of production facilities; At the same time, it will further strengthen training andemergency capacity building, achieve the “five in place”of work safety responsibility, management, investment,training and emergency rescue, ensure that no human-induced work safety accidents occur within the Company'ssystem, and continue to play a supporting role of the main peak-shaving power point.
3. Procurement of fuel: In 2023, the purchase price of fuel will mainly depend on the development of theinternational market and the selling prices of existing suppliers. Although the impact of the Russia-Ukraine waron the energy market will gradually abate, major economies in Europe and Asia have taken a variety of measuresin the past year to cope with the shortage of energy supply, in view of the current high price of internationalenergy and the expected increase in consumption after China fully liberalized the epidemic control and prevention,it is estimated that the Company's natural gas purchase cost in 2023 may be lower than that in 2022. But theoverall price level is still not optimistic. In addition, due to the marketization of the electricity trading inGuangdong Province, the Company's planned energy output cannot match with the actual energy output, and theplanned purchase amount of natural gas cannot match with the actual consumption amount to meet the balancebetween supply and demand. Due to the fact that the natural gas procurement contract must be signed in advance,the proposed procurement of the contracted quantity has been basically determined at the time of contract signing.If the gas cannot be delivered as agreed due to factors such as the marketization of electricity trading during thecontract period, there may be risks related to under drawn or over drawn of the contracted quantity. The Companywill continue to optimize our upstream partnerships and make full use of multiple sources of gas to reduce naturalgas purchase cost while ensuring electricity generation demand.The Company reminds investors to pay attention to the above major risks and other risks that the Company mayface, and prudently make rational investment decisions.
XII. Reception of research, communication and interview during the reporting period?Applicable □Not applicable
| Time | Location | Method | Type of object | Object | Main contents discussed and materials provided | Index of basic information of the research |
| January - December 2022 | Office of the Company's headquarters | Field research | Individual | Individual (8 persons) | Attending the general meeting and inquiring the register of members, etc. | The Company carries out reception according to laws and regulations |
| January - December 2022 | Interactive platform | Written inquiry | Individual | Individual (77 persons) | To inquire about the number of shareholders, the Company's future development direction, the progress of the Company's investment matters, and matters related to the land of Nanshan Thermal Power Station, etc. | The Company replied in writing in a timely manner |
| January - December 2022 | Telephone communication | Telephone communication | Individual | Individual (44 times) | To inquire about the Company's performance, market performance, land-related matters and the progress of the Nanshan Thermal Power Station. | The company replied in accordance with the laws and regulations |
Section IV Corporate GovernanceI. Basic conditions of the corporate governanceIn accordance with the Company Law, Securities Law, Listed Company Governance Guidelines, Stock ListingRules and the Articles of Association, the Company continued to improve the corporate governance structure,improve the modern corporate management system, enhance the standardized governance and fine governance,and effectively safeguard the legitimate equity of listed company, investors and employees.
1. General meeting of shareholders: The Company convenes a general meeting of shareholders in strictaccordance with legal procedures to ensure that shareholders exercise their rights in accordance with the law.During the reporting period, the Company convened one regular meeting and two extraordinary meetings of theshareholders' general meeting to carefully study and deliberate the major issues to be decided at the generalmeeting. The convening, convening procedures, qualifications of the attendees and conveners, voting proceduresand voting results of the Company's general meeting of shareholders comply with the relevant provisions of theCompany Law, the Securities Law, the Rules of Shareholders' Meetings of Listed Companies and other laws,regulations, normative documents and the articles of association. The Company does not have the situation thatmajor shareholders and their related parties occupy or transfer the Company's funds, assets and other resources inany form.
2. Board of Directors: The Company's Board of Directors adhere to standard operation and management,strengthen its self-construction and improve the standard operation and decision-making of the board of directors.During the reporting period, the Company's Board of Directors held two regular meetings and seven ad hocmeetings to deliberate and deliberate on major issues within its mandate. All the four special committees,namely, the Strategic and Investment Management Committee, the Audit Committee, the Nomination Committeeand the Remuneration and Appraisal Committee, under the Company's Board of Directors, carefully studied andreviewed relevant matters according to their respective responsibilities, and provided opinions and suggestions.They fully played the active role of each special committee in major investment decisions, important personneladjustments, salary standardization management, internal audit and risk control, effectively ensuring the scientificdecision-making and standardized management of the Company.
3. Board of Supervisors: the board of supervisors of the Company shall conscientiously perform itsresponsibilities in accordance with the relevant laws and regulations and in a responsible manner to the Companyand its shareholders. During the reporting period, the Board of Supervisors of the Company held two regularmeetings and two temporary meetings to supervise and inspect the Company's financial situation, major decision-making matters, internal control, standardized management and other important matters, and to give opinions. Atthe same time, the supervisor also conducts in-depth understanding of the Company's operation and managementand performs its supervisory duties by attending shareholders' meetings and attending board of directors meetingsas nonvoting delegates, as well as organizing field visits to the Company's subordinate enterprise.
4. Management: during the reporting period, the management of the Company strictly complied with therequirements of relevant regulations and the Articles of Association of the Company, conscientiouslyimplemented the decisions of the shareholders' meeting and the Board of Directors, actively organized theproduction, operation and management of the Company, continuously improved the office meeting system andinternal control system, continuously optimized the workflow and decision-making procedures, followed theworking principles of reasonable division of labor, enhanced cooperation and the purpose of collective decision-making on major matters, continuously improved the management level of the Company and strived to achievethe annual operation targets.
5. Information disclosure and investor relationship management: During the reporting period, the Company'sBoard of Directors should strictly comply with the requirements of the Administrative Measures for theInformation Disclosure of Listed Company and the Rules for the Listing of Stocks and other regulations andnormative documents, and the Company Shall seriously perform the obligation of the information disclosure. In2022, the Company completed the preparation and disclosure of regular reports and interim reports in accordancewith laws and regulations, and issued a total of 70 announcements in the whole year, striving to make investorsfully understand the Company's production, operation and management and major events. The Company strictlyfollows the requirements of regulatory documents such as Guidelines on Investor Relations Management forListed Companies and Self-regulatory Guidelines for Listed Companies on Shenzhen Stock Exchange No. 1 -Standardized Operation of Listed Companies on the Main Board to do a good job in investor relationsmanagement and communicate with investors through various forms such as receiving on-site visits from
investors, investor mailboxes, investor telephone hotlines and the interactive platform of Shenzhen StockExchange to strengthen investors' understanding of the Company.
6. Major information confidentiality: The Company standardized the management of confidential information instrict accordance with regulations and normative documents such as Measures for the Management of InformationDisclosure of Listed Companies, Guidance on the Supervision of Listed Companies No. 5 -- Registration andManagement of Confidential Information of Listed Companies, and conscientiously submitted the processmemorandum of major matters and insider information files in accordance with relevant regulations. During thereporting period, the Company did not disclose any inside information and did not provide non-public informationto major shareholders or violate the provisions on information disclosure of the Company.
7. Internal control and standardization: during the reporting period, the Company carried out a self-evaluation ofinternal control and regular internal audit and took active and effective measures to improve the existing problemsand shortcomings. At the same time, the Company - will strengthen business training and compliance educationfor directors, supervisors, senior managers, and middle level management cadres at all levels, increase assessment,rewards, and punishments, further improve standardized management, and strive to prevent operationalmanagement risks.Whether the actual situation of the corporate governance differs significantly from the listed company governanceprovisions promulgated by laws, administrative regulations and China Securities Regulatory Commission
□Yes ?No
The actual situation of the corporate governance is not materially different from the provisions of laws,administrative regulations and China Securities Regulatory Commission on listed company governance.II. The independence of the Company relative to the controlling shareholder and the actual controller inensuring the Company's assets, personnel, finances, institutions and operationsThe Company has no controlling shareholder. The Company is completely independent from its majorshareholders in terms of personnel, assets, finance, business, institutions, etc., and has the ability to makeindependent decisions and operate independently.
1. Personnel independence: the Company has an independent human resource management system and salary andwelfare system; All senior management personnel of the Company are full-time management personnel of theCompany, and none of them hold any administrative positions in the shareholder unit other than directors andsupervisors; Within the scope approved by the board of directors, the Company recruits and dismisses employeeson its own according to business management needs. The Company has established a relatively complete humanresource management system and has independent management rights.
2. Asset independence: the Company has independent production facilities and auxiliary systems, land use rightand house property, office facilities and equipment. It has the power to purchase and dispose of assets on its ownwithin the scope authorized by the general meeting of shareholders and the board of directors.
3. Financial independence: the Company has an independent financial management department and accountingsystem, equipped with independent financial management and accounting personnel. And it establishes arelatively complete financial management system, and has independent bank accounts and tax accounts. TheCompany has independent financial decision-making authority within the scope authorized by the general meetingof shareholders and the board of directors, and there are no circumstances under which major shareholdersinterfere with financial management or embezzle funds.
4. Business independence: The Company carries out production and operation activities independently, and hasestablished independent and complete production, procurement, sales channels and management system. Withinthe scope authorized by the shareholders' general meeting and the board of directors, they shall operate, manageand be responsible for their own profits and losses.
5. Institutional independence: According to the needs of production, operation and management, the Companyfollows the modern enterprise management standards, and has established a relatively perfect organizationalstructure and management structure. There is no interference by shareholders in the establishment and operationof the Company's institutions, and there is no sharing of organizational structure with shareholders.
III. Horizontal competition
□Applicable ?Not applicable
IV. Annual general meetings and extraordinary general meetings held during the reporting period
1. General meeting of shareholders during the reporting period
| Session of meeting | Type of the meeting | Ratio of investors | Date of the meeting | Date of disclosure | Resolution of the meeting |
| Annual general meeting of 2021 | Annual general meeting | 38.45% | April 15, 2022 | April 15, 2022 | The meeting deliberated and approved the 2021 Work Report of the Board of Directors, the 2021 Work Report of Supervisors, the Proposal on the 2021 Financial Final Accounts, the Proposal on 2021 Annual Profit Distribution Plan, the full text and summary of the 2021 Annual Report, the Proposal on the 2022 Remuneration of the President and the Proposal on the Employment of the 2022 Auditing Offices and Determination of Their Remuneration. |
| First extraordinary general meeting of 2022 | Extraordinary general meeting | 38.39% | August 2, 2022 | August 2, 2022 | Deliberated and approved the Proposal on By-election Independent Directors and the Proposal on Providing Guarantee for Holding Subsidiaries in 2022. |
| Second extraordinary shareholders' general meeting of 2022 | Extraordinary general meeting | 38.34% | September 13, 2022 | September 13, 2022 | Deliberated and approved the Proposal on the Byelection of Non-Independent Directors of the 9th Board of Directors of the Company. |
2. Request for an extraordinary general meeting by preferred shareholders whose voting rights have beenrestored
□Applicable ?Not applicable
V. Director, supervisors and senior management
1. Basic information
| Name | Title | Working status | Sex | Age | Start date of the term | End date of the term | Number of shares held at the beginning of the period (shares) | Number of shares increased in the current period (shares) | Number of shares reduced in the current period (shares) | Other increases and decreases (shares) | Number of shares held at the end of the period (shares) | Reasons for changes in share increase or decrease |
| Kong Guoliang | Chairman | Incumbent | Male | 39 | September 13, 2022 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 |
| Hu Ming | Vice chairman | Incumbent | Male | 52 | September 13, 2021 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Huang Qing | Director | Incumbent | Male | 51 | June 3, 2019 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Chen Yuhui | Director | Incumbent | Male | 57 | August 28, 2017 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| GM | August 11, 2017 | April 26, 2024 | ||||||||||
| Wu Guowen | Director | Incumbent | Male | 57 | April 25, 2016 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Standing deputy GM | April 1, 2016 | April 26, 2024 | ||||||||||
| Sun Huirong | Director | Incumbent | Male | 39 | April 26, 2021 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Huang Xiqin | Independent director | Incumbent | Female | 51 | August 2, 2022 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Chen Zetong | Independent director | Incumbent | Male | 52 | November 17, 2017 | November 17, 2023 | 0 | 0 | 0 | 0 | 0 | |
| Du Wei | Independent director | Incumbent | Male | 67 | November 11, 2019 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Zhai Baojun | Chairman of the Board of Supervisors | Incumbent | Male | 51 | March 23, 2023 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Li Caijun | Supervisors | Incumbent | Male | 44 | April 26, 2021 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Liao Junkai | Supervisors | Incumbent | Male | 34 | June 3, 2019 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Qian Wenhui | Employee representative supervisor | Incumbent | Male | 54 | April 26, 2021 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Lu Yindi | Employee representative supervisor | Incumbent | Female | 40 | April 26, 2021 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Zhang Xiaoyin | CFO | Incumbent | Male | 35 | June 13, 2022 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Zou Yi | Secretary of the Board of Directors | Incumbent | Male | 49 | April 26, 2021 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | |
| Li Xinwei | Chairman | Leave office | Male | 57 | August 28, 2017 | July 25, 2022 | 0 | 0 | 0 | 0 | 0 | |
| Mo Jianmin | Independent director | Leave office | Male | 56 | November 17, 2017 | August 2, 2022 | 0 | 0 | 0 | 0 | 0 | |
| Ye Qiliang | Chairman of the Board of Supervisors | Leave office | Male | 60 | November 17, 2017 | February 27, 2023 | 0 | 0 | 0 | 0 | 0 | |
| Zhang Jie | Vice-general manager | Leave office | Female | 55 | December 30, 2006 | March 20, 2023 | 17,325 | 0 | 0 | 0 | 17,325 | |
| Total | -- | -- | -- | -- | -- | -- | 17,325 | 0 | 0 | 0 | 17,325 | -- |
Note: Ye Qiliang, the chairman of the Supervisory Board, left his post on February 27, 2023 after reaching hisretirement age, and Zhang Jie, the Deputy General Manager, left his post on March 20, 2023 after reaching hisstatutory retirement age.During the reporting period, whether there was any departure of directors and supervisors and dismissal of SeniorOfficers?Yes □ No
On May 13, 2022, the Company's Board of Directors received a written resignation from Mr. Mo Jianmin, anindependent director. Mr. Mo Jianmin resigned as an independent director of the 9th Board of Directors of theCompany and as convener of the audit committee and remuneration and appraisal committee for personal reasons.Mr. Mo Jianmin's resignation will result in less than one-third of the independent directors' independent directorsand will take effect when a new listed company is elected. On August 2, 2022, the Company held the firstextraordinary general meeting of 2022 to elect Ms. Huang Xiqin as an independent director of the 9th Board ofDirectors of the Company, and the resignation report of Mr. Mo Jianmin became effective.On July 25, 2022, the Company's Board of Directors received a written resignation from Mr. Li Xinwei, a directorand the chairman of the board. Mr. Li Xinwei resigned as a director and chairman of the 9th Board of Directors ofthe Company and as convener of the 9th Board of Directors of the Company Strategy and InvestmentManagement Committee.On February 27, 2023, the board of supervisors of the company received a written resignation report submitted bythe chairman of the board of supervisors, Mr. Ye Qiliang. Mr. Ye Qiliang resigned as supervisor and chairman ofthe 9th Board of Supervisors of the Company due to reaching the statutory retirement age.On March 20, 2023, the board of directors of the company received a written resignation report submitted by Ms.Zhang Jie, Deputy General Manager. Ms. Zhang Jie resigned as Deputy General Manager of the company due toreaching the legal retirement age.Changes in directors, supervisors and senior management personnel of the Company?Applicable □Not applicable
| Name | Title | Type | Date | Reason |
| Kong Guoliang | Directors and chairman | Be elected | September 13, 2022 | |
| Huang Xiqin | Independent director | Be elected | August 2, 2022 | |
| Zhai Baojun | Chairman of the Board of Supervisors | Be elected | March 23, 2023 | |
| Zhang Xiaoyin | CFO | Appointed | June 13, 2022 | |
| Li Xinwei | Directors and chairman | Leave office | July 25, 2022 | Work change |
| Mo Jianmin | Independent director | Leave office | August 2, 2022 | Personal reasons |
| Ye Qiliang | Chairman of the Board of Supervisors | Leave office | February 27, 2023 | Retire |
| Zhang Jie | Vice-general manager | Leave office | March 20, 2023 | Retire |
2. Appointment
Professional background, main experiences and responsibilities of the current directors, supervisors and seniormanagementMr. Kong Guoliang: Born in 1983, a member of the CPC, master of finance, CUFE, certified public accountantand economist. He served as stock and securities affairs manager and securities affairs representative of ShenzhenZhenye (Group) Co., Ltd., senior manager and deputy head of Investment Department of Shenzhen YuanzhiInvestment Co., LTD., head of Capital Operation Department, head of Investment Development Department II,head (director) of Strategic Research Department (Board Office) and secretary of the Board of Directors ofShenzhen Capital Holdings Co., Ltd., director of Shenzhen Zhenye (Group) Co., Ltd., director of ChinaInternational Marine Containers (Group) Co., Ltd., general manager of Shenzhen Pingwen DevelopmentInvestment Co., Ltd., and chairman of Shenzhen Yuanzhi Culture Holding Co., Ltd. He is the chairman of theShenzhen Energy Group Co., Ltd., the director of Shenzhen Energy (H.K.) International Limited and the directorof the Hong Kong Nam Hoi (International) Ltd. He has served as chairman of the Board of the Company sinceSeptember 2022 and chairman of the Party Committee of the Company since November 2022.
Mr. Hu Ming: Born in 1970, Member of China National Democratic Construction Association, Master, SeniorEngineer. From March 2003 to December 2019, he worked in Nanshan District Housing and Urban-RuralDevelopment Bureau, Audit Bureau and other relevant government entities; From January 2020 to August 2021,he served as the Managing Director of Dashahe Construction Investment Co., Ltd. of Shenzhen and the ManagingDirector of Nanshan Anju Construction and Development Co., Ltd. of Shenzhen. He has served as managingdirector of the Shenzhen Guangju Energy Co., Ltd. since August 2021 and vice chairman of the Board of theCompany since September 2021.Mr. Huang Qing: Born in 1971, he is a member of the CPC, a middle-level economist, and a master ofeconomics, graduated from Wuhan University, majoring in national economic planning and management. He hassuccessively served as a clerk, deputy chief clerk and chief clerk of the General Office of Shenzhen MunicipalGovernment; Deputy Director of the General Office of the Shenzhen Municipal Government; Director of theGeneral Office of the Shenzhen Municipal Government; Deputy Secretary of the General Office of ShanxiProvincial Government; Deputy Director of the Office of Shanxi Provincial People's Government in Guangzhou,member of the Party Group, etc. He is vice president of Shenzhen Capital Holdings Co., Ltd., director ofShenzhen Energy Group Co., Ltd., director of Shenzhen Huanshui Investment Group Co., Ltd., director ofShenzhen Hi-tech Investment Group Co., Ltd., director of Xiong'an Green Research Think Tank Co., Ltd.,director of Shenzhen Building Research Institute Co., Ltd., chairman of Shenzhen Yixin Investment Co., Ltd. Hehas served as a director of the Company since June 2019.Mr. Chen Yuhui: Born in 1965, a member of the CPC, senior engineer, graduated from Shanghai JiaotongUniversity and obtained a bachelor's degree (undergraduate degree) in ship power and a master's degree(postgraduate degree) in vibration, shock and noise. In 1989, he worked in the maintenance department ofShenyang Liming Combustion Engine Company; From December 1989 to June 2006, he worked at Moon Baypower station of Shenzhen Energy Group, successively serving as shift director of operation department, specialengineer of chief engineer's office, deputy director of maintenance department, deputy director and director. Hesuccessively served as the Deputy General Manager and Operation Director of the Eastern power station ofShenzhen Energy Group from June 2006 to July 2014. He served as the Chairman, General Manager and PartySecretary of Zhuhai Shenneng Hongwan electricity Co. , Ltd. from July 2014 to August 2017. He has served asthe chairman of the Board and general manager of the Company since August 2017 and vice chairman of theParty Committee of the Company since May 2019.Mr. Wu Guowen: Born in 1965, bachelor. He has worked in Shenzhen Guangju Energy Co., Ltd. since 1994. Heserved as the Deputy General Manager of the Shenzhen Yilin Liquid Storage Co., Ltd. from 2008 to November2010; From December 2010 to March 2016, he worked in the Shenzhen Guangju Real Estate Co., Ltd.,successively serving as deputy general manager, legal representative, executive director and general manager; Heserved as the employee supervisor of the Shenzhen Guangju Energy Co., Ltd. from August 2013 to March 2018;He concurrently served as the Chairman of the Shenzhen Server Petrochemical Supplying Co., Ltd. from March2018 to September 2021; He has served as the Director and Executive Vice president of the Company since April2016.Mr. Sun Huirong:Born in 1983, is a member of the CPC, has a master's degree and an intermediate engineer title.He served as senior officer and project leader of Shenzhen Geotechnical Investigation & Surveying Intitute Co.,Ltd., Investment Director of Shenzhen Horizon Investment Management Co., Ltd., Senior manager and deputyhead of Research Department of Shenzhen Capital Holdings Co., Ltd., and deputy head of Strategic Research,M&A and Reorganization Department. Now, he is the head of Asset Management Department and head of AuditDepartment of Shenzhen Capital Holdings Co., Ltd. He is also a director of China International Marine Containers(Group) Co., Ltd., Shenzhen Kelu Electronic Technology Co., Ltd., Shenzhen Institute of Building Science Co.,Ltd., Shenzhen Zhenye (Group) Co., Ltd., and Shenzhen Zhaotchi Co., Ltd. He has served as a director of theCompany since April 2021.Ms. Huang Xiqin: Born in 1971, she holds a Bachelor's degree in Law and a Master's degree in Economics fromthe Party School of the Central Committee of the CPC, and an Executive MBA from the Guanghua School ofManagement of Peking University. He started working in September 1992. From September 1992 to May 1998,he served as appraiser and manager of Shenzhen International Real Estate Consulting Co., Ltd. She has served asthe Executive Director of Guozhonglian Asset Appraisal Land and Real Estate Appraisal Co., Ltd. since May1998; From December 2000 to date, he has served as the chairman of Guozhonglian Construction EngineeringManagement Consulting Co., Ltd.; From November 2001 to date, he has served as the chairman of GuangdongGuozhonglianhang Asset Appraisal Land Real Estate Appraisal Planning Consulting Co., Ltd.; From February
2015 to date, she has served as a director of Beijing Guozhonglian Auction Co., Ltd.; From January 2021 to date,he has served as the supervisor of Guangdong Guozhonglian Construction Engineering Co., Ltd.; From January2022 to date, he also served as the external director of Guangdong Province Construction Engineering Group Co.,Ltd. She has been an independent director of the Company since August 2022.Mr. Chen Zetong: Born in 1970, bachelor of laws of Southwest University of Political Science and Law,bachelor of laws of Hong Kong University and doctor of laws of Jilin University. From 1994 to 2003, he served asclerk, assistant judge and judge of the Real Estate Division of the Intermediate People's Court of Shenzhen. 2003-2006: President of the Economic Chamber; July-August 2002, Internship at the High Court of Hong Kong as aJudicial Assistant; From 2006 to 2010, he served as vice president of the seventh civil court (court of corporateliquidation and bankruptcy), of which he presided over the work of the court from June 2006 to August 2008.From 2010 to 2012, he served as a partner of Beijing Jindu Law Firm. From 2012 to date, he served as the seniorpartner of Beijing Junzejun Law Firm. He is independent directors of listed company Tianma MicroelectronicsCo., Ltd., independent directors of non-listed company Fude Insurance Holding Co., Ltd, independent directors ofFude Life Insurance Co., Ltd, and independent directors of Life Insurance Co., Ltd. He has served as anindependent director of the Company since November 2017.Mr. Du Wei: Born in 1955, is a member of the CPC, senior engineer, Ph. D. , graduated from Institute of PlasmaPhysics, Chinese Academy of Sciences. Successive cadres of the national energy commission; Assistant engineerand chief section officer of Yangtze River Basin Planning Office; Engineer and deputy department manager ofChina Nanshan Development Co., Ltd.; Deputy General Manager and General Manager of Shenzhen ChangjiangComputer Industry Co. , Ltd. Deputy head (deputy director) and head (director) of the Evaluation andRecommendation Center for Senior Managers of the Organization Department of the Shenzhen Commission;Deputy general manager of Shenzhen Expressway Development Company; Chairman of Shenzhen InternationalWest Logistics Co., Ltd. General Manager of Shenzhen International Qianhai Real Estate (Shenzhen) Co., Ltd.;Senior Consultant of Shenzhen International Qianhai Real Estate (Shenzhen) Co., Ltd. He is currently theexecutive director and general manager of Shenzhen Borun Investment Co., Ltd. and the executive director andgeneral manager of Shenzhen Tianyu Freight Forwarding Co., Ltd. He has served as an independent director ofthe Company since November 2019.
Members of the Board of Supervisors of the Company:
Zhai Baojun: Born in 1971, is a CPC member and holds a bachelor's degree. He was Manager of the SalesDepartment of Shenzhen Baoan Zhaobao Real Estate Development Co., Ltd. from May 1993 to August 2001; andworked for Shenzhen Guangju Energy Co., Ltd. from August 2001 to November 2013, successively serving asSecretary of the CYL Committee, Armed Officer, General Office Director and Party Office Director. He wasDeputy General Manager of Shenzhen Guangju Yida Hazardous Chemical Warehousing Co., Ltd; from December2013 to April 2015, and Deputy General Manager of Shenzhen Xiefu Energy Co., Ltd. (Xiefu Energy) from May2015 to April 2020. He has served as General Manager of Xiefu Energy since May 2020.He has served asChairman of the Board of Supervisors of the Company since March 2023.Mr. Li Caijun: Born in 1978, is the member of the CPC and has a master's degree. He used to be an accountingteacher of Chongqing Beibei Vocational Education Center, the manager of the finance department of ChongqingYanlong Property Development Co., Ltd., the manager of the investment banking department of Shenzhen EnergyFinance Co., Ltd., the director of the financial management department and the deputy director of the financialmanagement department of Shenzhen Special Zone Construction and Development Group Co., Ltd., the deputydirector of the strategic research and merger and reorganization department of Shenzhen Capital Operation GroupCo., Ltd., the financial director of Shenzhen Huanshui Investment Group, the director of the planning and financedepartment of Shenzhen Capital Holdings Co., Ltd., and is currently the general manager of Shenzhen YuanzhiCulture Holdings Co., Ltd. He has served as a supervisor of the Company since April 2021.Mr. Liao Junkai: Born in 1988, he is a member of the CPC. He holds a Master of Laws from the South ChinaUniversity of Technology. He has successively served as assistant, supervisor and manager of the risk controldepartment of Shenzhen Capital Holdings Co., Ltd.; He also served as an supervisor of Shenzhen Institute ofBuilding Research Co., Ltd. from November 2020 to November 2021; Since June 2021, he has been the GeneralManager of the Asset Management Center of Shenzhen Kelu Electronic Technology Co. , Ltd. He has served asthe supervisor of the Company since June 2019.
Mr. Qian Wenhui: Born in 1968, accountant, university degree, graduated in 1990 from Changsha NormalUniversity of Water Conservancy and Electric Power, major in financial accounting. From July to October 1990,he worked in Yangluo power station in Wuhan. He worked in our Finance Department from October 1990 toAugust 2003; He served as the CFO of Zhongshan Zhongfa electricity Co. , Ltd. from August 2003 to October2011. From March 2014 to December 2016, served as supervisors of Zhongshan Shenzhong Real EstateDevelopment Co., Ltd. and Zhongshan Shenzhong Real Estate Investment Real Estate Co., Ltd; He has served asthe Director of the Audit Risk Control Department of the Company since November 2010; He has served as thesupervisor of the Shenzhen Server Petrochemical Supplying Co., Ltd. since May 2014. He has served as theemployee representative supervisor of the Company since April 2021.Ms. Lu Yindi: Born in 1982, is a member of the CPC. She graduated from the Management Science andEngineering, School of Management, HUST in 2008. In July 2008, she started to work in the Global Supply ChainManagement Headquarters of iDSBG Business Group of Foxconn Technology Group, and successively held theposts of Deputy Section Director, Section Director and Specialist of the Supply Chain Management Department.She joined our Nanshan Thermal Power Station in August 2018 and has successively served as Head of Contractand Bidding, Deputy Head of Supply Department, Head of Supply Department and Deputy Director of fuelDepartment. She has served as the Office Director of the Company's Board of Directors since June 2021. She hasserved as the employee representative supervisor of the Company since April 2021.
Senior officers of the Company:
See the resumes of the aforementioned directors for the general manager Chen Yuhui and the executive vicegeneral manager Wu Guowen.Mr. Zhang Xiaoyin: Born in 1987, is a member of the CPC. He holds the professional qualifications of senioraccountant, certified public accountant, certified tax accountant, asset appraiser and FRM. He started to work inOctober 2008 and successively served as auditor of Financial Services Team of Ernst & Young Huaming CPAShenzhen Branch, financial accountant of Planning and Finance Department of Wanlian Securities Co., LTD.,senior manager of financial management Department of China Resources Shenzhen State Investment & Trust Co.,Ltd., as well as accountant and supervisor of China Resources Energy Services Co., Ltd. and Investment Director(Deputy Head) and other positions of Yuanzhi Venture Capital (Investment Development Division II) ofShenzhen Capital Holdings Co., Ltd. He has served as the CFO of the Company since June 2022.Mr. Zou Yi: Born in 1973, a member of the CPC, economist, M. E. From July 1994 to September 2007, heworked in the headquarters of Shenzhen Energy Corporation, and successively served as the business director ofFinance Department, deputy business director of fund office and the business director of chairman's secretariat.From September 2007 to December 2017, he was the Head of the Treasury Department of Shenzhen EnergyFinance Co. , Ltd. He served as the Deputy General Manager of Shenzhen Energy Finance Co., Ltd. fromDecember 2017 to July 2019. He concurrently served as the Director of Huizhou Shenneng Fengda electricity Co.,Ltd. from August 2017 to November 2018 From August 2019 to April 2021, he served as Director of theCompany's Board of Directors Office, meanwhile concurrently served as Director of the AdministrativeDepartment from July 2020 to April 2021. He has served as secretary of the Company's Board of Directors sinceApril 2021.Post-holding in the shareholder entity?Applicable □Not applicable
| Name of the post | Shareholder name of organization | Position in shareholder’s unit | Start date of the term | End date of the term | Whether to receive remuneration allowance in the shareholder's unit |
| Kong Guoliang | Shenzhen Energy Group Co., Ltd. | Chairman | November 2, 2022 | No | |
| Huang Qing | Shenzhen Energy Group Co., Ltd. | Director | April 24, 2019 | No |
| Kong Guoliang | Hong Kong Nam Hoi (International) Ltd. | Director | September 9, 2022 | No |
Post-holding in other entities?Applicable □Not applicable
| Name of the post | Other name of organization | Position in other units | Start date of the term | End date of the term | Whether to receive remuneration allowance in other units |
| Hu Ming | Shenzhen Guangju Energy Co., Ltd. | Director | August 20, 2021 | Yes | |
| GM | August 4, 2021 | ||||
| Huang Qing | Shenzhen Capital Holdings Co., Ltd. | Vice-general manager | September 1, 2016 | Yes | |
| Wu Guowen | Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | Director | November 18, 2022 | No | |
| Sun Huirong | Shenzhen Capital Holdings Co., Ltd. | Director of Asset Management Department | April 18, 2021 | Yes | |
| Director of Audit Department | May 12, 2022 | ||||
| Huang Xiqin | Guozhonglian Asset Appraisal Land and Real Estate Appraisal Co., Ltd. | Executive director | May 22, 1998 | Yes | |
| Guozhonglian Construction Engineering Management Consulting Co., Ltd. | Chairman | December 13, 2000 | Yes | ||
| Guangdong Guozhong United Bank Assets Appraisal Land Real Estate Appraisal Planning Consulting Co., Ltd. | Chairman | November 26, 2001 | Yes | ||
| Chen Zetong | Beijing Junzejun Law Offices | Senior partner | September 1, 2012 | Yes | |
| Du Wei | Shenzhen Borun Investment Co., Ltd. | Director and GM | February 1, 2020 | No | |
| Shenzhen Tianyu Freight Forwarding Co., Ltd. | Executive Director, General Manager | February 1, 2021 | No | ||
| Zhai Baojun | Shenzhen Server Energy Co., Ltd. | Acting General Manager | May 1st, 2020 | Yes |
| Li Caijun | Shenzhen Capital Holdings Co., Ltd. | Head of Planning and Finance Department | April 18, 2021 | December 17, 2022 | Yes |
| Shenzhen Yuanzhi Culture Holding Co., Ltd | GM | December 17, 2022 | Yes | ||
| Liao Junkai | Shenzhen Kelu Electronic Technology Co., Ltd. | General Manager of Asset Management Center | June 7, 2021 | Yes | |
| Qian Wenhui | Shenzhen Server Energy Co., Ltd. | Supervisors | September 2, 2021 | No |
The situation of penalties for the current and outgoing directors, supervisors and senior management personnel ofthe Company executed by securities regulatory institutions in the last three years.
□Applicable ?Not applicable
3. Remuneration of directors, supervisors and senior officers
Decision-making procedures, determination basis and actual payment of remuneration of directors, supervisorsand senior managers
1. Decision-making procedure: According to the Company's Articles of Association, the remuneration of directorsand supervisors shall be decided by the shareholders' meeting, and the remuneration of senior managers shall bedecided by the board of directors.
2. Basis for determination: at present, the Company has not implemented a remuneration system for non-independent directors and supervisors, and directors and employee supervisors serving in the Company onlyreceive remuneration for their administrative positions in the Company. The Company's board ofdirectors determines the annual remuneration standards of the Company's senior managers according to the annualoperating efficiency, post grade, and other factors and comprehensively considers the salary level of the industryand determines the actual remuneration standards that can be paid according to the assessment and audit of theannual business performance indicators.3 Actual payment: The Company pays the remuneration in strict accordance with the decision-making proceduresand determination basis for the remuneration of directors, supervisors and senior management, and the expensesrelated to transportation, accommodation, research, inspection and attendance at meetings incurred by directorsand supervisors for the performance of their duties are borne by the Company.Compensation for directors, supervisors and senior management of the Company during the reporting period(including employee benefit payments and various insurance premiums, provident funds and annuities receivedfrom the Company)
Unit: RMB 10,000
| Name | Title | Sex | Age | Working status | Total pre-tax compensation received from the Company | Whether or not to receive compensation from a related party in the Company |
| Kong Guoliang | Chairman | Male | 39 | Incumbent | 36.84 | No |
| Hu Ming | Vice chairman | Male | 52 | Incumbent | 0 | Yes |
| Huang Qing | Director | Male | 51 | Incumbent | 0 | Yes |
| Chen Yuhui | Director and GM | Male | 57 | Incumbent | 98.47 | No |
| Wu Guowen | Director and Executive Deputy General Manager | Male | 57 | Incumbent | 92.51 | No |
| Sun Huirong | Director | Male | 39 | Incumbent | 0 | Yes |
| Huang Xiqin | Independent director | Female | 51 | Incumbent | 4.96 | No |
| Chen Zetong | Independent director | Male | 52 | Incumbent | 11.90 | No |
| Du Wei | Independent director | Male | 67 | Incumbent | 11.90 | No |
| Li Caijun | Supervisors | Male | 44 | Incumbent | 0 | Yes |
| Liao Junkai | Supervisors | Male | 34 | Incumbent | 0 | Yes |
| Qian Wenhui | Employee supervisor | Male | 54 | Incumbent | 61.88 | No |
| Lu Yindi | Employee supervisor | Female | 40 | Incumbent | 52.24 | No |
| Zhang Xiaoyin | CFO | Male | 35 | Incumbent | 25.29 | Yes |
| Zou Yi | Secretary of the Board of Directors | Male | 49 | Incumbent | 89.78 | No |
| Li Xinwei | Chairman | Male | 57 | Leave office | 78.43 | No |
| Mo Jianmin | Independent director | Male | 56 | Leave office | 6.94 | No |
| Ye Qiliang | Chairman of the Board of Supervisors | Male | 60 | Leave office | 92.27 | No |
| Zhang Jie | Vice-general manager | Female | 55 | Leave office | 89.78 | No |
| Total | -- | -- | -- | -- | 753.19 | -- |
Note: Ye Qiliang, the chairman of the Supervisory Board, left his post on February 27, 2023 after reaching hisretirement age, and Zhang Jie, the Deputy General Manager, left his post on March 20, 2023 after reaching hisstatutory retirement age.VI. Performance of duties by directors during the reporting period
1. Board of Directors during the reporting period
| Session of meeting | Date of the meeting | Date of disclosure | Resolution of the meeting |
| The fifth extraordinary meeting of the 9th Board of Directors | February 21, 2022 | February 23, 2022 | Deliberated and approved the Proposal on Shutdown and Decommissioning of Two 9E Gas Turbines of Shen Nan Dian (Zhongshan) Electric Power Co., Ltd.. |
| Third meeting of the 9th Board of Directors | March 23, 2022 | March 25, 2022 | Deliberated and approved the full text and summary of the 2021 Work Report of the Board of Directors, 2021 Work Report of the General Manager, Proposal on the 2021 Asset Provision for Impairment, 2021 Financial Final Accounts, 2021 Profit Distribution Plan, 2021 Internal Control Evaluation Report Proposal for Deliberation and 2021 Annual Report; Proposal on the Comprehensive Business Plan for 2022, Proposal on the Asset Disposal of Units 7 and 9 of Nanshan Thermal Power Station, Proposal on the Application |
| of the Company for Comprehensive Financing Credit in 2022, Proposal on the Salary Accrual Plan for 2022, Proposal on Hiring an Audit Organization for 2022 and Determining Their Remuneration, and Proposal on Convening the General Meeting of Shareholders for 2021. | |||
| The sixth extraordinary meeting of 9th Board of Directors | April 26, 2022 | April 27, 2022 | Deliberated and approved the First Quarter Report 2022. |
| The seventh extraordinary meeting of the 9th Board of Directors | June 13, 2022 | June 14, 2022 | Deliberated and approved the Proposal on Appointment of Corporate CFO. |
| The eighth extraordinary meeting of the 9th Board of Directors | July 15, 2022 | July 16, 2022 | Deliberated and approved the Proposal on By-Election Independent Directors, the Proposal on Providing Guarantee for Holding Subsidiaries in 2022 and the Proposal on Convening the First Extraordinary General Meeting in 2022. |
| Fourth meeting of the 9th Board of Directors | August 17, 2022 | August 19, 2022 | Deliberated and approved the full text and summary of the Semi-Annual Report 2022; Proposal on Revising the Management System for Investment Decision-making. |
| The 9th extraordinary meeting of the 9th Board of Directors | August 26, 2022 | August 27, 2022 | Deliberated and approved the Proposal on By-election of Non-independent Directors of 9th Board of Directors of the Company and the Proposal on Convening of the Second Extraordinary General Meeting in 2022. |
| The 10th extraordinary meeting of the 9th Board of Directors | September 13, 2022 | September 14, 2022 | Deliberated and approved the Proposal on Election of Chairman of the 9th Board of Directors of the Company and the Proposal on Election of Members of The 9th Board Of Directors of the Company Strategy and Management Committee. |
| The 11th extraordinary meeting of the 9th Board of Directors | October 24, 2022 | October 26, 2022 |
The Proposal on Adjustment of Salary AccrualQuota and Bonus Settlement Scheme and the ThirdQuarter Report of 2022 was reviewed and passed.
2. Attendance by directors at the Board of Directors and the general meeting
| Attendance by directors at the Board of Directors and the general meeting of shareholders | |||||||
| Name of directors | Number of board meetings to be attended during the reporting period | Number of attendances at the Board of Directors | Number of board meetings attended by communication | Times of entrusted presence | Number of absences at the Board of Directors | Absent from the meeting for the second time in a row | Number of general meetings attended |
| Kong Guoliang | 2 | 1 | 1 | 0 | 0 | No | 0 |
| Hu Ming | 9 | 1 | 8 | 0 | 0 | No | 3 |
| Huang Qing | 9 | 1 | 8 | 0 | 0 | No | 3 |
| Chen Yuhui | 9 | 1 | 8 | 0 | 0 | No | 3 |
| Wu Guowen | 9 | 1 | 8 | 0 | 0 | No | 3 |
| Sun Huirong | 9 | 1 | 8 | 0 | 0 | No | 2 |
| Huang Xiqin | 4 | 1 | 3 | 0 | 0 | No | 1 |
| Chen Zetong | 9 | 1 | 8 | 0 | 0 | No | 3 |
| Du Wei | 9 | 1 | 8 | 0 | 0 | No | 3 |
| Li Xinwei | 5 | 0 | 5 | 0 | 0 | No | 1 |
| Mo Jianmin | 5 | 0 | 5 | 0 | 0 | No | 1 |
Explanation of failure to attend the board meeting in person for two consecutive timesNo
3. Objections by directors to relevant matters of the Company
Whether the director raises any objection to the relevant matters of the Company
□Yes ?No
During the reporting period, the directors did not raise any objection to the relevant matters of the Company.
4. Other instructions on the performance of duties by directors
Whether the relevant suggestions of the directors on the Company are adopted?Yes □ NoStatement by the directors on the adoption or non-adoption of the relevant recommendations of the CompanyDuring the reporting period, all directors of the Company were diligent and conscientious, and carried out theirwork in strict accordance with the relevant provisions of the China Securities Regulatory Commission andShenzhen Stock Exchange, as well as the Company's Articles of Association, Board of Directors Rules ofProcedure, and other systems. They pay high attention to the standardized operation and operation of theCompany, and carefully study various proposals submitted to the Board of Directors for deliberation based on theactual situation of the Company to ensure scientific decision-making and maintain the legitimate equity of theCompany and all shareholders.VII. Information of special committees under the board of directors during the reporting period
| Name of Committee | Membership | Number of meetings held | Date of the meeting | Content of the meeting | The important opinions and suggestions put forward | Other situations of duty performance | Details of objections (if any) |
| Strategy and Investment Management Committee | Li Xinwei, Hu Ming, Huang Qing, Chen Yuhui and Wu Guowen | 1 | March 23, 2022 | To deliberate the 2021 Performance Report of the Strategy and Investment Management Committee of | According to the actual situation of the Company, the attending members unanimously adopted the proposal after full communication and discussion. | No |
| the Board of Directors. | |||||||
| Nomination Committee | Chen Zetong, Hu Ming and Du Wei | 4 | March 23, 2022 | Deliberated the 2021 Performance Report of the Nomination Committee of the Board of Directors. | According to the actual situation of the Company, the attending members unanimously adopted the proposal after full communication and discussion. | No | |
| June 13, 2022 | Deliberated the Proposal on Appointment of Corporate CFO. | According to the actual situation of the Company, the attending members unanimously adopted the proposal after full communication and discussion. | No | ||||
| July 15, 2022 | Deliberated the Proposal on the Independent Directors of By-Elections. | According to the actual situation of the Company, the attending members unanimously adopted the proposal after full communication and discussion. | No | ||||
| August 26, 2022 | Deliberated the Proposal on By-election of Non-independent Directors of 9th Board of Directors of the Company. | According to the actual situation of the Company, the attending members unanimously adopted the proposal after full communication and discussion. | No | ||||
| Remuneration and Appraisal Committee | Mo Jianmin, Wu Guowen, Du Wei | 1 | March 23, 2022 | Deliberated the 2021 Performance Report of the Remuneration and Appraisal Committee of the Board of Directors and the Proposal on the 2022 Remuneration Provision Plan. | According to the actual situation of the Company, the attending members unanimously adopted all the proposals after full communication and discussion. | No | |
| Audit Committee | Mo Jianmin, Sun Huirong, Chen Zetong | 1 | March 23, 2022 | Listened to the Auditor' Report 2021 and the Internal Control Audit Report 2021; | According to the actual situation of the Company, the attending members unanimously adopted all the proposals | No |
| Deliberated the Proposal on Submitting For Review the Internal Control Evaluation Report in 2021, the Proposal on Hiring and Determining the Remuneration of Auditors in 2022 and the Performance Report of the Audit Committee of the Board of Directors in 2021. | after full communication and discussion. | |||||
| Huang Xiqin, Sun Huirong, Chen Zetong | 1 | October 21, 2022 | Listened to the Annual Audit Plan 2022 of Shenzhen Nanshan Power Co., Ltd. submitted by Lixinzhonglian Cpas. | Members attending the meeting listened carefully to the LIXINZHONGLIAN CPAS's audit plan and fully communicated and discussed it. | No |
VIII. Work of the supervisorsWhether the Board of Supervisors found any risks in the Company during its supervision activities during thereporting period
□ Yes ?No
The Board of Supervisors has no objection to the supervisory matters during the reporting period.IX. Employees of the Company
1. Number of employees, professional composition and education level
| Number of active employees in the parent company at the end of the reporting period (persons) | 253 |
| Number of in-service employees of major subsidiaries at the end of the reporting period (person) | 129 |
| Total number of in-service employees at the end of the reporting period (person) | 382 |
| Total number of employees receiving salary in the current period (person) | 382 |
| Number of retired employees of the parent company and its major subsidiaries (person) | 0 |
| Professional categories | |
| Types of professional category | Number of specialty composition (person) |
| Production personnel | 163 |
| Salesperson | 1 |
| Technician | 105 |
| Financial staff | 23 |
| Administrative staff | 90 |
| Total | 382 |
| Education | |
| Type of education background | Quantity (person) |
| High school and below | 41 |
| College and technical secondary education | 164 |
| Bachelor's degree | 157 |
| Master and above | 20 |
| Total | 382 |
2. Remuneration policy
The Board of Directors adopts the principle of annual remuneration provision with fixed basic remuneration as themain body for the Company. The remuneration of the chairman of the board of directors shall be reported to theshareholders' general meeting for examination and approval upon the approval of the board of directors; Theremuneration of the general manager and senior officers at the level of deputy general manager shall be proposedby the remuneration and appraisal committee of the board of directors and submitted to the board of directors forexamination and approval. The compensation of other personnel is authorized to be managed by the Company'smanagement team based on the principles of “salary based on position” and "remuneration based on work”.Within the annual salary quota approved by the board of directors, the Company strictly controls salary costs,establishes a salary incentive mechanism linked to employee performance, formulates salary standards,distribution plans, assessment, rewards and punishment methods, and is responsible for organizing andimplementing them to give full play to the incentive role of salary.
3. Training plan
The Company attaches great importance to employee training, and has established a relatively perfect trainingsystem. By strengthening employee training, the Company enhances the post skills and comprehensive quality ofemployees, better meets the needs of the Company's operation and management for talents, and cultivates reservetalents for the Company's sustainable development. During the reporting period, in terms of safety training, theCompany organized safety education and training, emergency rescue drills, and emergency response training at alllevels of the Company in accordance with the Work Safety Law and other laws and regulations, organized andparticipated in epidemic control and prevention, confidential work training, etc. to improve the safety awareness,accident prevention ability, and professional level of cadres and employees at all levels. In terms of on-the-jobtraining, a combination of overseas study and internal training is adopted to carry out on-the-job training withcertificates for key business and technical positions to improve employees' ability to perform their duties and relyon the gas turbine simulation training base to improve the practical operation and resilience of power stationoperators. In the party member training and learning, the Party Committee of the Company and the Party branchesin strict accordance with the requirements of the superior party organization, formulate practical training andlearning plans, take the combination of online and offline, the distribution of books, materials, the teachers,experts invited in, leading the party members to go out and other forms of various ways, actively carry out the artymember learning and education work. At the same time, the system of “three meetings and one lesson”shall bestrictly implemented, and activities such as“Secretary's Party Lecture” shall be earnestly carried out. Throughtraining and study, ensure that the Party organization plays the role of fighting fortress, and ensure that themajority of Party members play the role of vanguard and exemplary.
4. Labor outsourcing
□Applicable ?Not applicable
X. Profit distribution and conversion of capital reserves into share capital of the CompanyFormulation, implementation or adjustment of profit distribution policies, especially cash dividends, during thereporting period
□Applicable ?Not applicable
The company was profitable during the reporting period and the parent company's profit available for distributionto shareholders was positive but no cash dividend distribution plan was proposed.
□Applicable ?Not applicable
Conversion of profit distribution and capital reserves into share capital during the reporting period
□Applicable ?Not applicable
The Company plans to distribute no dividends, bonus shares or increase share capital by the reserve funds.XI. Implementation of the Company's equity incentive plans, employee stock ownership plans or otheremployee incentive measures
□Applicable ?Not applicable
During the reporting period, the Company had no equity incentive plan, employee stock ownership plan or otheremployee incentive measures and their implementation.XII Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
According to the provisions of the Basic Standards for Enterprise Internal Control and its implementationguidelines, the Company will update and improve the Company's internal control system in a timely manner,establish a scientifically designed and applicable internal control system, and jointly form the Company by theaudit committee and internal audit department. The risk internal control management organization system isestablished, and the Company's internal control management is supervised and evaluated. Through the operation,analysis, and evaluation of the internal control system, the Company effectively prevents risk in management andpromotes the realization of the internal control goals.
2. Details of major defects of the internal control found during the reporting period
□ Yes ?No
XIII. Management control of the subsidiaries during the reporting period of the CompanyNoXIV. Internal control self-evaluation report or internal control audit report
1. Internal control self-evaluation report
| Disclosure date of full text of internal control evaluation report | April 7, 2023 |
| Disclosure index of the full text of internal control evaluation report | Internal Control Evaluation Report 2022, CNINF http://www.cninfo.com.cn |
| Proportion of total assets of the unit brought into assessment scope to the total assets of the consolidated financial statements total assets of the Company | 94.63% |
| Ratio of the total assets of units included in the scope of evaluation accounting for the total assets on the Company's consolidated financial statements | 100.00% | |
| Defect identification standard | ||
| Category | Financial report | Non-financial report |
| Qualitative criteria | Major defects: under major operational activities, there are major defects in several companies which are consolidated into the preparation of financial statements; or there are major defects in few of companies which are consolidated into the preparation of financial statements but the Company with major defect are the main one participating into such major operation activities; Substantial defects: under major operational activities, there are substantial defects in few companies in consolidated statements, and the Company with substantial defects is not the major participating company in the major business activities Or there are moderate defects in more than one consolidated statement company; or there are moderate defects in few of companies which are consolidated into the preparation of financial statements but the Company with moderate defect are the main one participating into such major operation activities; General defects: under major operational activities, there are moderate defects in few of companies which are consolidated into the preparation of financial statements, and the Company with moderate defects is not the main one participating into the major operational activities; Or there are only ordinary defects in each consolidated statement company; Or there is no internal control defects under major business activities, but only internal control defects under non-major business activities. | Major defects: under major operational activities, there are major defects in several companies which are consolidated into the preparation of financial statements; or there are major defects in few of companies which are consolidated into the preparation of financial statements but the Company with major defect are the main one participating into such major operation activities; Substantial defects: under major operational activities, there are substantial defects in few companies in consolidated statements, and the Company with substantial defects is not the major participating company in the major business activities Or there are moderate defects in more than one consolidated statement company; or there are moderate defects in few of companies which are consolidated into the preparation of financial statements but the Company with moderate defect are the main one participating into such major operation activities; General defects: under major operational activities, there are moderate defects in few of companies which are consolidated into the preparation of financial statements, and the Company with moderate defects is not the main one participating into the major operational activities; Or there are only ordinary defects in each consolidated statement company; Or there is no internal control defects under major business activities, but only internal control defects under non-major business activities. |
| Quantitative criteria | Major defects: the amount misstated ≥0.5% of the total consolidated statement assets; Substantial defects: 0.2% of total consolidated statement assets ≤ | Substantial defects: 0.2% of total consolidated statement assets ≥ 0.5% of direct total consolidated statement assets; Substantial defects: 0.2% of total |
| misstated amount <0.5% of the total consolidated statement assets General defects: misstated amount <0.2% total consolidated statement assets | consolidated statement assets ≤ 0.5% of direct total consolidated statement assets; General defects: Amount of direct loss < 0.2% of total consolidated statement assets. | |
| Number of major defects in the financial report (unit) | 0 | |
| Number of significant defects in the non-financial report (unit) | 0 | |
| Number of substantial defects in the financial report (unit) | 0 | |
| Number of substantial defects in non-financial report (unit) | 0 | |
2. Internal control audit report
?Applicable □Not applicable
| Deliberations in Internal Control Audit Report | |
| In the opinion of the accounting firm, the Shenzhen Nanshan Power Co., Ltd. has maintained effective financial reporting internal control in all material respects in accordance with the Basic internal control Standards and related regulations. | |
| Disclosure of internal control audit report | Disclosure |
| Disclosure date of full text of internal control audit report | April 7, 2023 |
| Disclosure index to full text of internal control audit report | Internal Control Evaluation Report 2022, CNINF http://www.cninfo.com.cn |
| Opinion type of internal control audit report | Standard unqualified opinion |
| Whether there are significant defects in the non-financial report | No |
Internal control audit report on whether the accounting firm has issued a modified opinion
□ Yes ?No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation reportof the board of directors?Yes □ NoXV. Rectification of self-examination problems in special actions for listed company governanceThe self-inspection and rectification of the special action on corporate governance of listed company wascompleted in 2021. During the reporting period, in strict accordance with the relevant provisions of laws andregulations, closely centering on the Company's development strategy, the Company diligently fulfilled itsobligations and exercised its powers, conscientiously implemented the resolutions of the shareholders' meeting,actively and effectively carried out the work of the Board of directors, and earnestly safeguarded thelegitimate equity of the Company and all shareholders.
Section V Environment and Social ResponsibilitiesI. Major environmental protection IssuesWhether the listed company and its subsidiaries are listed as major pollutant discharge entities by environmentalprotection departments?Yes □ NoRelevant policies and industrial standards for environmental protectionThe company is in the industry of 4411 thermal power generation industry, the current implementation of ThermalPower Station Emission Standard GB-13223-2011. At the same time, subordinate Nanshan Thermal PowerStation strictly control nitrogen oxides emissions in accordance with the “Shenzhen Blue” Sustainable Action Plan2018.Environmental protection administrative licensing conditionThe subsidiary Nanshan Thermal Power Station has obtained the pollutant discharge license issued by NanshanAdministration Bureau of Shenzhen Ecological Environment Bureau, License No.: 91440300764983799T001P.The subsidiary Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. has obtained the pollutant discharge licenseissued by Zhongshan Ecological Environment Bureau, license number: 914420007564567614001P.Industrial emission standards and specific conditions of pollutant discharge involved in the operating activities
| Name of the Company or name of subsidiary | Types of main pollutants and characteristic pollutants | Main pollutants and features | Ways of discharge | Number of discharge outlets | Distribution of discharge outlets | Emission concentration/intensity | Pollutant discharge standard implemented | Total emissions | Authorized total emissions | Excessive emission |
| Shenzhen Nanshan Power Co., Ltd. | Nitrogen oxides | Nitrogen oxides | Centralized emissions of boiler stack | 2 | Within the plant area of Nanshan Thermal Power Station | <15 mg/m? | Application of "Shenzhen Blue" emission criteria <15mg/m3 | 53.18 tons | 457.5 tons | 0 |
| Shenzhen New Power Industrial Co., Ltd. | Nitrogen oxides | Nitrogen oxides | Centralized emissions of boiler stack | 1 | Within the plant area of Nanshan Thermal Power Station | <15 mg/m? | Application of "Shenzhen Blue" emission criteria <15mg/m3 | 31.47 tons | 228.75 tons | 0 |
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | Nitrogen oxides | Nitrogen oxides | Centralized emissions of boiler stack | 2 | Within the plant area of Zhongshan Nanlang Power Plant | <50 mg/m? | GB13223 | 2.91 tons | The pollutant discharge was 324.5 tons/year before July 2022, which was changed to 803.06 tons/year after being approved by Zhongshan Ecological Environment Bureau in July 2022. | 0 |
For the treatment of pollutants, the Company has a total of 5 sets of 9E units, Shenzhen Nanshan Power Co.,Ltd. has two 9E units and Shenzhen New Power Industrial Co., Ltd. has one 9E unit, all using GE DLN1.0+ lownitrogen combustion system. Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. owns two sets of 9E unit usingthe GE DLN1.0 low-nitrogen combustion system. During the reporting period, the Company and its holding
subsidiaries strictly abide by the national laws and regulations on environmental protection, and all the pollutantsdischarged from the Company meet the national discharge standards. There are no environmental pollutionaccidents and no penalties imposed by relevant authorities due to major environmental protection issues.Emergency plan for abrupt environmental accidentsThe emergency response plan has been filed with the Guangdong Province Environmental Protection Departmentand the corresponding municipal environmental protection bureau.Environmental self-monitoring programA self-monitoring plan has been prepared and approved by the environmental protection department; Carry outtimely information disclosure of surveillance data on the website of environmental protection administration.Relevant information on the input in environmental governance and protection and the payment for environmentalprotection taxThe Company attaches great importance to environmental protection, and strengthens on-site management bycarrying out special work such as investigation of potential environmental risks and standardized management ofhazardous wastes; In addition, the Company continuously increases the investment in the maintenance ofenvironmental protection facilities, continuously improves and perfects the environmental protectioninfrastructure, and continuously increases the level of pollution prevention and control.The Company pays environmental protection tax in strict accordance with the requirements of the Law of thePeople's Republic of China on Environmental Protection Tax, President's Decree No. 61 and other relevant lawsand regulations.Measures taken to reduce its carbon emissions during the reporting period and their effects?Applicable □Not applicableDuring the reporting period, the power stations under the Company continuously improve the efficiency of theunits and reduced carbon emissions by implementing technical transformation measures such as unit condenserretrofit and shaft seal heater retrofit.Administrative penalties imposed due to environmental problems during the reporting periodNoOther environmental information that shall be made publicNoOther environmental protection related informationNoII. Social responsibilitiesIn 2022, although the Company faced many challenges in terms of production, operation and management, theCompany had the courage to shoulder our social responsibilities, actively safeguarded electricity supply in theface of serious inversion of power generation cost and electricity prices, and earnestly fulfilled its socialresponsibilities to the best of its ability. In terms of work safety, the Company strictly abides by the Work SafetyLaw and other relevant laws and regulations, and in accordance with the provisions of “shared responsibilities ofthe party and the government, dual responsibilities for one post, joint management, and accountability fordereliction of duty”, takes multiple measures to strengthen safety management, compacts safety responsibilities atall levels, and continuously maintains the “five nos” safety objective. In terms of environmental protection, theCompany strictly abides by national and local environmental protection laws and regulations. We always adhereto the concept of clean power generation and circular economy development. All the environmental protectionwork have been carried out effectively and the environmental protection emissions have reached the standard. Noenvironmental pollution accidents have occurred. In terms of epidemic control and prevention, the Companystrictly implemented the decision and deployment of the Party Central Committee and the State Council and thework requirements of the epidemic control and prevention command institutions at all levels, implemented themain responsibility of epidemic control and prevention without compromise, and in accordance with the decision
and deployment of higher-level units and the competent industry departments, on four occasions and for a total of88 days, during the particularly severe period of the epidemic, dozens of operational staff on duty in the maincontrol room were put on 24-hour fully enclosed duty in the plant to ensure that the power station units could beswitched on at any time, and successfully completed the task of guaranteeing power supply under the specialsituation, and resolutely built a firm line of defense against the epidemic; In the meanwhile, it has activelymobilized cadres and employees to participate in anti-pandemic voluntary services, and successively dispatchednearly 20 employees to actively participate in social anti-pandemic voluntary services in four batches todemonstrate their responsibilities. In terms of love assistance, the Company actively implemented the Shenzhenconsumption poverty alleviation policy, participated in the consumption poverty alleviation of 129,900 yuan,donated 10,000 yuan to Nanshan Charity Association, organized the staff to participate in the “Shenzhen WorkLove Pengcheng”donation and other activities.III. Consolidating and expanding achievements in poverty alleviation and rural revitalizationIn 2022, the Company actively responded to the call of the Central Committee of the Communist Party of Chinaand the State Council on poverty alleviation and rural revitalization, implemented the policy of poverty alleviationthrough consumption, and actively participated in assisting poverty alleviation through consumption when theCompany's production and operation were relatively difficult. The cumulative amount of participating in povertyalleviation through consumption reached 129,900 yuan.
Section VI Important MattersI. Performance of commitments
1. The actual controller, shareholders, affiliates, acquirers and the Company and other commitments of therelevant parties of the Company have been fulfilled during the reporting period and have not been fulfilledby the end of the reporting period
□Applicable ?Not applicable
There are no commitments that have been fulfilled by the actual controller, shareholders, related parties,purchasers of the Company and other parties related to the Company during the reporting period and have notbeen fulfilled during the end of the reporting period of the Company.
2. If there is a profit forecast for the assets or projects of the Company, and the reporting period is still inthe period of profit forecast, the Company shall make an explanation on whether the assets or projectsreach the original profit forecast and the reasons therefor
□Applicable ?Not applicable
II. Non-operating funds occupied by controlling shareholders and other related parties of the listedcompany
□Applicable ?Not applicable
The Company had no non-operational fund occupation from controlling shareholders and its related party inperiod.III. Illegal external guarantee
□Applicable ?Not applicable
The company had no illegal external guarantee during the reporting period.IV. Explanation of the Board of Directors on the latest “modified audit report”
□Applicable ?Not applicable
V. Statement by the board of directors, supervisors and independent directors (if any) on the “modifiedauditors' report” of the accounting firm during the reporting period
□Applicable ?Not applicable
VI. Changes in accounting policies, accounting estimates or corrections of significant accounting errorscompared with the previous financial reports
□Applicable ?Not applicable
The Company had no changes in accounting policies, accounting estimates or correction of significant accountingerrors during the reporting periodVII. Changes in the scope of consolidated statements compared with the financial report of the previousyear
□Applicable ?Not applicable
There was no change in consolidation statement’s scope during the reporting period of the Company.VIII. Appointment and dismissal accounting firmAccounting firm appointed presently
| Name of the domestic accounting firm | LIXINZHONGLIAN CPAS (Special General Partnership) |
| Remuneration for domestic accounting firm (unit: RMB | 73 |
| ten thousand) | |
| Consecutive audit service years for domestic accounting firm | 4 |
| Certified public accountant name of domestic accounting firm | Cao Wei, Liu Xinfa |
| Continuous years of auditing service for domestic accounting firm | 4 |
Whether the accounting firm is reappointed in the current period
□ Yes ?No
Appointment of internal control auditing accounting firm, financial consultant or sponsor?Applicable □Not applicableLIXINZHONGLIAN CPAS (SPECIAL GENERAL PARTNERSHIP) was appointed as the auditing authority forthe internal control of the Company with expenses of 0.23 million Yuan.IX. Delisting after the disclosure of annual reports
□Applicable ?Not applicable
X. Matters related to bankruptcy reorganization
□Applicable ?Not applicable
There were no matters related to bankruptcy reorganization during the reporting period of the Company.XI. Major litigation and arbitration matters
□Applicable ?Not applicable
During the reporting period, the Company had no major litigation or arbitration matters.XII. Punishments and rectifications
□Applicable ?Not applicable
There were no penalties and rectifications during the Company's reporting period.XIII. Integrity of the Company and its controlling shareholders and actual controller?Applicable □Not applicableDuring the reporting period, the Company did not fail to perform the effective judgment of the court, did not havedebts with a large amount due and unliquidated, and the integrity was good. During the reporting period, theCompany had no controlling shareholders or actual controllers.XIV. Major related transaction
1. Related transaction related to daily operation
□Applicable ?Not applicable
There were no related transaction related to daily operations during the reporting period of the Company.
2. Related transaction on acquisition or sale of assets or equities
□Applicable ?Not applicable
There were no related transaction of acquisition or sale of assets or equity during the reporting period of theCompany.
3. Related transaction of joint outbound investments
?Applicable □Not applicable
| Co-investor | Association | Name of the investee | Primary business of the investee | Registered capital of the investee | Total assets of the investee (RMB10,000) | Net assets of the investee (RMB10,000) | Net profit of the investee (RMB10,000) |
| Shenzhen Capital Holdings Co., Ltd., Shenzhen Yuanzhi Ruixin Equity Investment Management Co., Ltd., Shenzhen Luohu Guidance Fund Investment Co., Ltd. and Shenzhen City Kunpeng Equity Investments Co., Ltd. | Affiliated legal person of Shenzhen Capital Holdings Co., Ltd., Shenzhen Yuanzhi Ruixin Equity Investment Management Co., Ltd. | Shenzhen Yuanzhi Ruixin New Generation IT Private Equity Investment Fund Partnership (Limited Partnership) | Invest in the new generation of IT related chips and devices as well as hardware, software and system applications related to the ecosystem of universal information and communication technology (ICT), including but not limited to hardware, software and system applications such as smart city, smart manufacturing and smart power grid which are connected by ICT and based on basic technologies such as artificial intelligence, big data and vision technology (investment strategy) | RMB 100,000 | 49,036.06 (Unaudited) | 48,784.01 (Unaudited) | -1,215.99 (Unaudited) |
4. Related party credit and debt current
□Applicable ?Not applicable
During the Company's reporting period, the Company had no current accounts of related creditor's rights anddebts.
5. Transactions with finance company with association
□Applicable ?Not applicable
There are no deposits, loans, lines of credit or other financial transactions between the finance company and itsrelated parties in association.
6. Transactions between finance company controlled by the Company and its related parties
□Applicable ?Not applicable
There are no deposits, loans, credit lines or other financial transactions between the finance company controlledby the Company and its related parties.
7. Other significant related transaction
□Applicable ?Not applicable
There were no other significant related transaction during the Company's reporting period.XV. Significant contract and implementations
1. Custody, contracting and lease
(1) Trusteeship
?Applicable □Not applicableTrusteeship explanationAccording to the Contract for Custody and Operation of Generator Unit Assets of Shenzhen New PowerIndustrial Co., Ltd. signed between the Company and New Power Company, the Company is entrusted to operateand manage the generator unit assets owned by its wholly-owned subsidiary, New Power Company. During thereporting period, the Company collected RMB 15.6878 million of asset custody service fees.Gains/losses to the Company from projects that reached over 10% in total profit of the Company in reportingperiod
□Applicable ?Not applicable
During the reporting period, the Company did not have any escrow items with profit and loss of more than 10% ofthe total profit during the reporting period.
(2) Contract
□Applicable ?Not applicable
There was no contracting during the Company's reporting period.
(3) Lease
□Applicable ?Not applicable
There was no lease during the Company's reporting period.
2. Material guarantees
□Applicable ?Not applicable
There was no significant guarantee during the Company's reporting period.
3. Cash asset management by entrusting others
(1) Entrusted wealth management
?Applicable □Not applicableOverview of entrusted wealth management during the reporting period
Unit: RMB 10,000
| Type | The source of funds for entrusted wealth management | Amount of entrusted wealth management | Unexpired balance | Amount not recovered within the prescribed period | Overdue recovery of the financial management has been deducted impairment amount. |
| Bank financial products | Own fund | 146,646.28 | 21,001.36 | 0 | 0 |
| Total | 146,646.28 | 21,001.36 | 0 | 0 | |
The specific situation of high-risk entrusted wealth management with significant single amount, low security, andpoor liquidity
□Applicable ?Not applicable
The entrusted wealth management is expected to fail to recover the principal or there are other circumstances thatmay lead to impairment
□Applicable ?Not applicable
(2) Entrusted loans
□Applicable ?Not applicable
There were no entrusted loans during the Company's reporting period.
4. Other major contracts
?Applicable □Not applicable
| Name of the contracting Company | Name of the contracting party | Contract object | Date of signing the contract | Book value of assets involved in the contract (RMB10,000) (if any) | Appraisal value of the assets involved in the contract (RMB10,000) (if any) | Name of evaluation agency (if any) | Base date of evaluation (if any) | Pricing principles | Transaction price (RMB'0,000) | Whether related transaction or not | Association | Performance as at the end of the reporting period | Date of disclosure | Index of disclosure |
| Company, New Power Company | Shenzhen Gas Group Co., Ltd. | Pipeline natural gas | May 14, 2018 | No | The Contract is a framework agreement, and the natural gas price shall be negotiated by the | No | Not applicable | In progress | Failure to meet the special disclosure conditions |
Buyerand theSellerin theform ofsupplementaryagreement.
XVI. Notes to other significant events?Applicable □Not applicable
1. Shutdown and decommissioning of two 9E gas turbines of Shen Nan Dian (Zhongshan) Electric Power Co.,Ltd.: On February 21, 2022, after deliberation and approval at the fifth provisional meeting of the 9th Board ofDirectors, the Company started the shutdown and decommissioning of two sets of 9E gas units of Shen Nan DianZhongshan Company. (For details, please refer to the Announcement on the Resolution of the Fifth ProvisionalMeeting of the 9th Board of Directors of the Company in China Securities Journal, Securities Times, Hong KongCommercial Daily and CNINF. Notice number: 2022-003). On November 24, 2022, Shen Nan Dian ZhongshanCompany submitted its application for shutdown and decommissioning to the Guangdong Province EnergyBureau. Shen Nan Dian Zhongshan Company will continue its power generation business before obtaining theapproval, which will not have a significant impact on the current production and operation of the Company andShen Nan Dian Zhongshan Company.
2. Independent energy storage project of the Company and its holding subsidiary Shen Nan Dian (Zhongshan)Electric Power Co., Ltd.: In June 2022, The Company and its holding subsidiary Shen Nan Dian (Zhongshan)Electric Power Co., Ltd. respectively obtained the Shenzhen Social Investment Project Filing Certificate issued byShenzhen Nanshan District Development and Reform Bureau and the Guangdong Province Enterprise InvestmentProject Filing Certificate issued by Zhongshan Municipal Development and Reform Bureau, which approved theregistration of the first phase of the Shen Nan Dian Nanshan Thermal Power Station technological transformationand upgrading independent energy storage demonstration project and the 300 MW/600 MWh independent energystorage power station (Phase I Project) in Cuiheng New District, Zhongshan. (For details, please refer to theAnnouncement on Obtaining the Record-filing of Shen Nan Dian (Zhongshan) Electric Power Co., Ltd.Independent Energy Storage Projects by the Company and Its Holding Subsidiaries (Announcement No. 2022-020) disclosed in the China Securities Journal, Securities Times, Hong Kong Commercial Daily and CNINF)
3. Land related matters of Nanshan Thermal Power Plant: In August 2022, the Company learned from the websiteof“Shenzhen Government Online” that Shenzhen Municipal Bureau of Planning and Natural Resources issued aNotice on the Issuance of Shenzhen 2022 Annual Urban Renewal and Land Reconditioning Plan (ShenzhenPlanning Resources [2022] No. 332). According to the relevant contents of the attached table, The 2022 landreconditioning project of Qianhai Cooperation Zone still includes land acquisition and storage of NanshanThermal Power Station under the Company and related contents. (For details, please refer to the China SecuritiesJournal, Securities Times, Hong Kong Commercial Daily and CNINF Announcement No. 2022-032)In addition to the above, there was no progress or change in the refundable items of the Company's “ProjectTechnological Transformation Beneficiary Fund” and the Guangdong Province Xinjiang Aid Project in which theCompany participated in 2013.XVII. Major events of the subsidiaries of the Company
□Applicable ?Not applicable
Section VII Changes in Shares and Particular about ShareholdersI. Changes in shares
1. Changes in shares
Unit: share
| Before the change | Increase or decrease (+,-) of the change | After the change | |||||||
| Quantity | Proportion | New shares issued | Bonus shares | Capitalization of public reserve | Others | Subtotal | Quantity | Proportion | |
| I. Restricted shares | 12,994 | 0.0022% | 12,994 | 0.0022% | |||||
| 1. State-owned shares | |||||||||
| 2. Shares held by state-owned legal person | |||||||||
| 3. Other domestic shares | 12,994 | 0.0022% | 12,994 | 0.0022% | |||||
| Including: shares held by domestic legal person | |||||||||
| Domestic natural person’s shares | 12,994 | 0.0022% | 12,994 | 0.0022% | |||||
| 4. Foreign shares | |||||||||
| Including: shares held by overseas legal persons | |||||||||
| Foreign natural person’s shares | |||||||||
| II. Unrestricted shares | 602,749,602 | 99.9978% | 602,749,602 | 99.9978% | |||||
| 1. RMB ordinary shares | 338,895,156 | 56.2236% | 338,895,156 | 56.2236% | |||||
| 2. Foreign shares listed domestically | 263,854,446 | 43.7742% | 263,854,446 | 43.7742% | |||||
| 3. Foreign shares listed overseas | |||||||||
| 4. Others | |||||||||
| III. Total number of shares | 602,762,596 | 100.00% | 602,762,596 | 100.00% |
Reasons for changes in shares
□Applicable ?Not applicable
Approval of changes in shares
□Applicable ?Not applicable
Transfer of changes in shares
□Applicable ?Not applicable
The impact of stock changes on basic and diluted earnings per share, net assets value per share attributable to theCompany's ordinary shares and other financial indicators in the most recent year and the most recent period
□Applicable ?Not applicable
Other contents deemed necessary by the Company or required by the securities regulators to be disclosed
□Applicable ?Not applicable
2. Changes in restricted shares
□Applicable ?Not applicable
II. Securities issuance and listing
1. Issuance of securities (excluding preferred shares) during the reporting period
□Applicable ?Not applicable
2. Explanation of the changes in the total number of shares and shareholder structure of the Company, aswell as changes in the structure of assets and liabilities of the Company
□Applicable ?Not applicable
3. Existing shares of internal employees
□Applicable ?Not applicable
III. Shareholders and actual controllers
1. Number of shareholders and shareholding of the Company
Unit: share
| Total number of shareholders in the ordinary shares at the end of the period | 42,912 | Total number of shareholders of the ordinary shares at the end of the previous month before the | 38,525 | Total number of preferred shareholders whose voting rights were stored at the end of the reporting | 0 | Total number of preferred shareholders with voting right recovered by the end of last month prior to disclosure of annual report (if | 0 |
| date of disclosure | period (if any) (see Note 8) | any) (See Note 8) | ||||||
| Shareholders holding more than 5% of the shares or the top 10 shareholders | ||||||||
| Shareholders' name | Nature of shareholders | Shareholding ratio | Number of shares held at the end of the reporting period | Increase or decrease during the reporting period | Number of shares held with restrictive conditions for sales | Number of shares held without restrictive conditions for sales | Pledge, marking or freezing | |
| State of share | Quantity | |||||||
| HONG KONG NAM HOI (INTERNATIONAL) LTD. | Overseas legal person | 15.28% | 92,123,248 | 92,123,248 | ||||
| Shenzhen Guangju Industrial Co., Ltd. | State-owned legal person | 12.22% | 73,666,824 | 73,666,824 | ||||
| Shenzhen Energy Group Co., Ltd. | State-owned legal person | 10.80% | 65,106,130 | 65,106,130 | ||||
| BOCI SECURITIES LIMITED | Overseas legal person | 2.34% | 14,109,038 | -501,824 | 14,109,038 | |||
| Zeng Ying | Domestic natural persons | 1.19% | 7,159,600 | 0 | 7,159,600 | |||
| China Merchants Securities (HK) Co., Ltd. | Overseas legal person | 0.90% | 5,430,728 | -187,500 | 5,430,728 | |||
| Meiyi Investment Real Estate Co., Ltd. | Domestic non-state-owned legal person | 0.87% | 5,223,200 | 5,200 | 5,223,200 | |||
| Haitong International Securities Company Limited-Account Client | Overseas legal person | 0.65% | 3,908,357 | -1,000 | 3,908,357 | |||
| Huang Yilong | Domestic natural persons | 0.64% | 3,866,500 | 1,700,000 | 3,866,500 | |||
| Li Baoqin | Domestic natural persons | 0.51% | 3,048,150 | 5,800 | 3,048,150 | |||
| Strategic investors or general legal persons becoming the top 10 shareholders due to placement of new shares (if any) (see Note 3) | No | |||||||
| Explanation of the association or acting in concert of the above-mentioned shareholders | 1. The Shenzhen Energy Group Co., Ltd. holds 100% equity in the HONG KONG NAM HOI (INTERNATIONAL) LTD.. 2. The company does not know whether the above-mentioned other public | |||||||
| shareholders have any association or are persons acting in concert. | |||
| Explanations on entrustment/entrustment voting rights and waiver of voting rights by the above shareholders | No | ||
| Special instructions on the existence of repurchase accounts among the top 10 shareholders (in case) (see Note 10) | No | ||
| Shareholding of top ten shareholders without sales restriction | |||
| Shareholders' name | Number of shares without restrictive conditions for sales at the end of the reporting period | Type of shares | |
| Type of shares | Quantity | ||
| HONG KONG NAM HOI (INTERNATIONAL) LTD. | 92,123,248 | Foreign shares listed domestically | 92,123,248 |
| Shenzhen Guangju Industrial Co., Ltd. | 73,666,824 | RMB ordinary shares | 73,666,824 |
| Shenzhen Energy Group Co., Ltd. | 65,106,130 | RMB ordinary shares | 65,106,130 |
| BOCI SECURITIES LIMITED | 14,109,038 | Foreign shares listed domestically | 14,109,038 |
| Zeng Ying | 7,159,600 | Foreign shares listed domestically | 7,159,600 |
| China Merchants Securities (HK) Co., Ltd. | 5,430,728 | Foreign shares listed domestically | 5,430,728 |
| Meiyi Investment Real Estate Co., Ltd. | 5,223,200 | RMB ordinary shares | 5,223,200 |
| Haitong International Securities Company Limited-Account Client | 3,908,357 | Foreign shares listed domestically | 3,908,357 |
| Huang Yilong | 3,866,500 | RMB ordinary shares | 3,866,500 |
| Li Baoqin | 3,048,150 | Foreign shares listed domestically | 3,048,150 |
| Description of the association or concerted action among the top 10 shareholders of tradable shares without sales restriction, and between the top 10 shareholders of tradable shares without sales restriction and the top 10 shareholders | 1. The Shenzhen Energy Group Co., Ltd. holds 100% equity in the HONG KONG NAM HOI (INTERNATIONAL) LTD.. 2. The company does not know whether the above-mentioned other public shareholders have any association or are persons acting in concert. | ||
| Description of the participation of the top 10 shareholders of the ordinary shares in securities lending and borrowing business (in case) (see Note 4) | No | ||
Whether the top 10 ordinary shares shareholders and the top 10 non-restricted ordinary shares shareholders of theCompany have engaged in any agreed repurchase transactions during the reporting period
□ Yes ?No
The top 10 ordinary shares shareholders and the top 10 non-restricted ordinary shares shareholders of theCompany did not engage in any agreed repurchase transactions during the reporting period.
2. Controlling shareholders of the Company
Nature of controlling shareholder: No controlling subjectType of controlling shareholder: Not applicableStatement on the absence of controlling shareholders of the CompanyAt present, the Company has no controlling shareholders as defined in Article 216 (2) of the Company Law of thePeople's Republic of China and Article 15.1(3) of the Listing Rules of Shenzhen Stock Exchange.Changes in controlling shareholders during the reporting period
□Applicable ?Not applicable
There was no change in the controlling shareholder of the Company during the reporting period.
3. Actual controllers of the Company and its persons acting in concert
Nature of actual controller: No actual controllerType of actual controller: Not applicableStatement on the absence of actual controller of the CompanyAt present, the Company does not have identification criteria of the actual controller of the listed company asstipulated in Article 216 (3) of the Company Law of the People's Republic of China, Article 84 of theAdministrative Measures for the Acquisition of Listed Company and Article 15.1 (4) of the Listing Rules ofShenzhen Stock Exchange.Whether there are shareholders holding more than 10% of the shares at the ultimate control level of the Company
□ Yes ?No
The Company has no actual controllers.Changes in actual controller during the reporting period
□Applicable ?Not applicable
There was no actual controller during the reporting period.Block charter of company property and control relationships
Control of the actual controller through a trust or other asset management method
□Applicable ?Not applicable
4. The cumulative number of pledged shares held by the controlling shareholder or the largest shareholderof the Company and its persons acting in concert accounts for 80% of the Company's shares held by them
□Applicable ?Not applicable
5. Other corporate shareholders holding more than 10% of the shares
?Applicable □Not applicable
| Name of corporate shareholder | Legal representative/person in charge | Date of establishment | Registered capital | Main business or management activities |
| HONG KONG NAM HOI (INTERNATIONAL) LTD. | Kong Guoliang | May 14, 1985 | HKD 15.33 million | Investment by holding shares |
| Shenzhen Guangju Industrial Co., Ltd. | Deng Zhenwu | May 31, 1989 | RMB 111.11 million | Establishment of industries and electricity investment (specific projects shall be declared separately) |
| Shenzhen Energy Group Co., Ltd. | Kong Guoliang | July 15, 1985 | RMB 230.971224 million | Development, production, purchase and sales of various conventional energy sources (including electricity, heat, coal, oil and gas) and new |
energy sources
6. Restrictions on reduction of shares of controlling shareholders, actual controllers, restructuring partiesand other undertaking entities
□Applicable ?Not applicable
IV. Specific Implementation of Share Repurchase during the Reporting PeriodImplementation progress of share repurchase
□Applicable ?Not applicable
Implementation progress of reducing repurchased shares through centralized competitive bidding
□Applicable ?Not applicable
Section VIII Preferred Shares
□Applicable ?Not applicable
The Company had no preferred shares during the reporting period.
Section IX Bonds
□Applicable ?Not applicable
Section X Financial ReportI. Financial statements
Auditor' Report
LXZLSZ [2023] D-0263
All shareholders of Shenzhen Nanshan Power Co., Ltd.,I. OpinionWe have audited the accompanying financial statements of Shenzhen NanshanPower Co., Ltd. (hereinafter referred to as "Shen Nan Dian"), which comprise theconsolidated and the parent company's balance sheet as at December 31, 2022, theconsolidated and the parent company's income statement, the consolidated and theparent company's cash flow statement, the consolidated and the parent company'sstatement of changes in shareholder's equity for the year then ended, and the notes tothe financial statements.In our opinion, all significant aspects of the financial statements attached have beenprepared based on the Accounting Standards for Business Enterprises and present fairlyShen Nan Dian's consolidated and parent company's financial position as at December31, 2022 and the consolidated and parent company's operating results and cash flowsfor the year then ended.II. Basis for the formation of the opinionWe have carried out the audit in accordance with the Auditing Standards forCertified Public Accountants of China. “Certified Public Accountants’ Responsibility forAudit of Financial Statements” in the auditor's report further elaborates on ourresponsibility under these standards. In accordance with the Code of Ethics of CertifiedPublic Accountants in China, we are independent of Shen Nan Dian and have fulfilledother responsibilities in professional ethics. We believe that our audit evidence issufficient and appropriate to provide a basis for our opinions.
III. Key audit mattersThe key audit matters are the matters that, based on our professional judgment, areconsidered to be of most significance in the audit of the financial statements of thecurrent period. These matters are addressed in the context of the audit of the financialstatements as a whole and the formation of an audit opinion, and we do not express anindependent opinion on these matters.
| Key audit matters | Handling method |
| (I) Asset impairment | |
| Please refer to the accounting policies described in Note (XIX) to "III. Important Accounting Policies and Accounting Estimates" and Note (XLVII) to "V. Notes to Items in the Consolidated Financial Statements" As at December 31, 2022, the book value of fixed assets and construction in progress in the consolidated financial statements of Shen Nan Dian totals 596,151,266.47 yuan, accounting for 22.87% of the total consolidated assets and 58.60% of the non-current assets of Shen Nan Dian, which is an important part of the assets of Shen Nan Dian. In 2022, the amount of asset impairment loss recognized in the consolidated financial statements of Shen Nan Dian is 8,946,433.92 yuan, accounting for 4.82% of the total profit in the consolidated income statement, which has a significant impact on the operating results of Shen Nan Dian. | Our audit procedures for asset impairment include: 1. Evaluate and test the effectiveness of the design and implementation of internal controls related to asset impairment; 2. Select samples to implement supervision procedures on assets to understand whether the assets have problems such as backward process technology, long-term idleness, and low load rate; 3. Comprehensively evaluate the qualifications, competencies, evaluation methods and parameters used in the evaluation of external appraisers based on their work. |
| The management of Shen Nan Dian has evaluated whether there is any indication of impairment of the above mentioned assets. If the indication of impairment is identified, the management shall conduct an impairment test by calculating the recoverable amount of the individual asset or the asset group in which it is located and comparing the recoverable amount with the book value. Since the management of Shen Nan Dian needs to use significant accounting estimates and judgments when determining the expected recoverable amount of assets, and the impact amount is significant, we have identified asset impairment losses as a key audit matter. | |
| (II) Income recognition matters | |
| For details of the accounting policies for income recognition and analysis, please refer to the accounting policies described in Note (XXIV) to "III. Important Accounting Policies and Accounting Estimates" and Note (XXXVIII) to "V. Notes to Items in the Consolidated Financial Statements". In 2022, the consolidated operating income of Shen Nan Dian was 694,227,657.28 yuan, down by 8.31% compared with the previous period. As operating income is one of the Company's key performance indicators and there is an inher | The audit procedures related to the operating income recognition include: 1. Evaluate the design and operational effectiveness of the key internal controls related to income recognition; 2. Select a sample to examine the sales contract, identify the contract terms and conditions related to the transfer of risks and rewards in the ownership of goods, and evaluate whether the revenue recognition time meets the requirements of the accounting standards for business enterprises; 3. Implement substantive analysis procedures for operating income and gross profit, and judege the reasonabl |
IV. Other informationThe management of Shen Nan Dian Power (hereinafter referred to as theManagement) is responsible for other information. Other information includes theinformation covered in the relevant documents that constitute the 2022 Annual Report,but excludes the financial statements and our auditor's report.Our audit opinion on the financial statements does not cover the other informationand we do not express any form of assurance on the other information.In connection with our audit of the financial statements, our responsibility is to readthe other information and, in doing so, consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a materialmisstatement of this other information, we are required to report that fact. We have
| ent risk that the timing of income recognition may be manipulated to achieve specific objectives or expectations, we identify operating income recognition as a key audit matter. | eness of changes in operating income and gross profit margin in the current period; 4. Select samples from the accounting records of operating income and electricity bills to check the authenticity and completeness of operating income recognition; Check the collection records, select samples to issue letters to confirm the balance of accounts receivable or advances from customers at the end of the period, and confirm the authenticity of the sales business based on the collection of accounts receivable after the period; 5. Perform a cut-off test on operating income to assess whether operating income has been included in the appropriate accounting period. |
nothing to report in this regard.V. Responsibilities of the management and the governance for financialstatements
The management is responsible for the preparation and fair presentation of thesefinancial statements in accordance with the provisions of the Accounting Standards forBusiness Enterprises and for such internal control as management determines isnecessary to enable the preparation of financial statements that are free from materialmisstatement, whether due to frauds or errors.In preparing the financial statements, the management is responsible for assessingthe ability of Shen Nan Dian to continue as a going concern, disclosing matters related togoing concern, and applying the going concern assumption, unless the managementplans to liquidate Shen Nan Dian, discontinue operations or has no other realisticalternative.Those charged with governance are responsible for supervising the financialreporting process of Shen Nan Dian.VI. Certified public accountant’s responsibility for audit of financialstatementsOur objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement, whether due to frauds orerrors, and to issue an auditor’s report that includes our opinion. The reasonableassurance is a high level assurance, but it is not guaranteed that the audit carried out inaccordance with the audit guidelines can always find out material misstatement in thepresence. The misstatement may be caused by frauds or errors. If misstatement alone orin summary is reasonably expected to affect the economic decision of the users offinancial statements, the misstatement is generally considered to be significant.In the process of performing the audit in accordance with the auditing standards, weapply professional judgment and maintain professional doubts. We also:
(1) Identify and assess the risks of material misstatement of the financialstatements, whether due to frauds or errors, design and perform audit proceduresresponsive to those risks, and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. Since fraud may involve collusion, forgery, intentionalomission, false representation or not be subject to internal control, failure to find the riskof material misstatement due to frauds is higher than the risk of failure to find a majormisstatement due to errors.
(2) Understand internal controls related to the audit to design appropriate auditprocedures.
(3) Evaluate the appropriateness of accounting policies adopted by managementand the rationality of accounting estimation and related disclosure.
(4) Conclude on the appropriateness of the management’s use of going concernbasis and, based on the audit evidence obtained, whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the Shen Nan Dian’sability to continue as a going concern. If we come to the conclusion that there arematerial uncertainties, the audit guidelines require that we draw the attention of thereport users to the relevant disclosures in the financial statements in the audit report. Ifthe disclosure is not sufficient, we should issue a modified auditor's report. Ourconclusions are based on information available as of the date of the auditor's report.However, future events or conditions may cause Shen Nan Dian to discontinueoperation.
(5) Evaluate the overall presentation (including disclosures), structure and content ofthe financial statements and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient and appropriate audit evidence from the financial informationabout the entity or business activities of Shen Nan Dian, to give our opinion on thefinancial statements. We are responsible for guiding, supervising and carrying out theaudit over the Group, and assume all responsibilities for our opinion.
We communicate with those charged with governance regarding, among othermatters, the planned scope and timing of the audit and significant audit findings,including any significant deficiencies in internal control that we identify during our audit.
We also provide a statement to those charged with governance that we haveobeyed ethical requirements related to independence and communicate with thosecharged with governance all relationships and other matters that may reasonably bebelieved to affect our independence, and related preventive measures (if applicable).
From the matters communicated with those charged with governance, we determinethose matters that are of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless laws and regulations prohibit public disclosure of such matters, orin rare circumstances where the adverse consequences of communicating a matter inour auditor's report would reasonably be expected to outweigh the benefits in the publicinterest, we determine that the matter should not be communicated in the auditor'sreport.
LixinZhonglian CPAs (SPECIAL GENERAL PARTNERSHIP) Chinese CertifiedPublic Accountant:Cao Wei
(Project Partner)
Chinese Certified Public Accountant:Liu Xinfa
Tianjin, China April 4, 2023
Ⅱ. Financial statements
1. Consolidated balance sheet
Prepared by: Shenzhen Nanshan Power Co., Ltd.
December 31, 2022
Unit: RMB
| Item | December 31, 2022 | January 1, 2022 |
| Current assets: | ||
| Cash and cash equivalents | 675,496,266.40 | 689,604,633.59 |
| Settlement provisions | ||
| Capital lent | ||
| Financial assets held for trading | 440,013,571.10 | 632,874,406.39 |
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 135,833,492.64 | 73,610,161.02 |
| Receivables financing | ||
| Advances to suppliers | 45,448,287.86 | 64,415,236.66 |
| Premiums receivable | ||
| Reinsurance accounts receivable | ||
| Contract reserve of reinsurance receivable | ||
| Other receivables | 18,314,003.84 | 25,841,206.66 |
| Including: interest receivable | ||
| Dividends receivable | ||
| Financial assets of purchase under resale agreements | ||
| Inventories | 85,279,298.35 | 88,500,991.13 |
| Contract assets | 217,009.58 | 1,040,000.00 |
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 188,248,840.44 | 331,868,661.62 |
| Total current assets | 1,588,850,770.21 | 1,907,755,297.07 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Creditors' investments | ||
| Other creditors' investments | ||
| Long-term receivables |
| Long-term equity investments | 83,496,098.24 | 6,986,655.19 |
| Other investments in equity instruments | 300,615,000.00 | 200,615,000.00 |
| Other non-current financial assets | ||
| Investment properties | 1,833,344.20 | 2,009,051.80 |
| Fixed assets | 591,290,204.31 | 643,256,398.30 |
| Construction in process | 4,861,062.16 | 6,088,768.51 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 7,707,617.90 | |
| Intangible assets | 19,799,355.12 | 20,465,906.86 |
| Development expenditure | ||
| Goodwill | ||
| Long-term deferred expenses | 1,219,129.18 | 1,716,460.30 |
| Deferred income tax assets | 1,172,366.49 | 1,109,286.38 |
| Other non-current assets | 5,371,398.18 | |
| Total non-current assets | 1,017,365,575.78 | 882,247,527.34 |
| Total assets | 2,606,216,345.99 | 2,790,002,824.41 |
| Current liabilities: | ||
| Short-term borrowings | 879,957,857.44 | 858,444,163.25 |
| Borrowings from central bank | ||
| Capital borrowed | ||
| Transactional financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 137,298,902.17 | 135,025,883.27 |
| Accounts payable | 5,227,836.22 | 6,703,466.71 |
| Advances from customers | ||
| Contract liabilities | ||
| Financial assets of the sale for repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Employee compensation payable | 29,296,815.07 | 41,533,020.96 |
| Taxes payable | 5,107,666.73 | 4,145,839.89 |
| Other payables | 22,997,466.80 | 62,678,254.02 |
| Including: interest payable |
| Dividends payable | ||
| Service fee and commission payable | ||
| Reinsurance accounts payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 6,014,119.95 | |
| Other current liabilities | 21,600.00 | |
| Total current liabilities | 1,085,922,264.38 | 1,108,530,628.10 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term borrowings | 28,019,758.68 | 0.00 |
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual bond | ||
| Lease liabilities | 2,262,160.03 | |
| Long-term payables | ||
| Long-term employee compensation payable | ||
| Estimated liabilities | 15,000,000.00 | 15,000,000.00 |
| Deferred income | 82,145,596.60 | 88,079,970.09 |
| Deferred income tax liabilities | ||
| Other non-current liabilities | 47,511.72 | 50,310.78 |
| Total non-current liabilities | 127,475,027.03 | 103,130,280.87 |
| Total liabilities | 1,213,397,291.41 | 1,211,660,908.97 |
| Owner's equity: | ||
| Share capital | 602,762,596.00 | 602,762,596.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual bond | ||
| Capital reserves | 362,770,922.10 | 362,770,922.10 |
| Less: Treasury stock | ||
| Other comprehensive income | -2,500,000.00 | -2,500,000.00 |
| Special reserves | ||
| Surplus reserves | 332,908,397.60 | 332,908,397.60 |
| General risk reserves | ||
| Undistributed profit | 159,187,979.14 | 319,351,219.81 |
| Total equity attributable to owners of parent company | 1,455,129,894.84 | 1,615,293,135.51 |
| Minority equity | -62,310,840.26 | -36,951,220.07 |
| Total owner's equity | 1,392,819,054.58 | 1,578,341,915.44 |
| Total liabilities and owners' equity | 2,606,216,345.99 | 2,790,002,824.41 |
Legal representative: Kong Guoliang Accounting principal: Chen Yuhui CFO: Zhang Xiaoyin Head of accountingdepartment: Lin Xiaojia
2. Balance sheet of the parent company
Unit: RMB
| Item | December 31, 2022 | January 1, 2022 |
| Current assets: | ||
| Cash and cash equivalents | 652,703,545.21 | 592,751,213.88 |
| Financial assets held for trading | 440,013,571.10 | 622,874,406.39 |
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 47,995,982.82 | 35,966,056.15 |
| Receivables financing | ||
| Advances to suppliers | 29,715,650.29 | 60,381,018.05 |
| Other receivables | 851,189,111.89 | 618,436,063.60 |
| Including: interest receivable | ||
| Dividends receivable | ||
| Inventories | 79,504,053.32 | 79,904,055.96 |
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 180,501,049.31 | 321,673,866.15 |
| Total current assets | 2,281,622,963.94 | 2,331,986,680.18 |
| Non-current assets: | ||
| Creditors' investments | ||
| Other creditors' investments | ||
| Long-term receivables | ||
| Long-term equity investments | 352,171,153.27 | 287,301,269.81 |
| Other investments in equity instruments | 160,615,000.00 | 60,615,000.00 |
| Other non-current financial assets | ||
| Investment properties | ||
| Fixed assets | 279,587,315.87 | 314,308,562.41 |
| Construction in process | 1,976,173.28 | 1,399,062.85 |
| Productive biological assets |
| Oil and gas assets | ||
| Right-of-use assets | 7,707,617.90 | |
| Intangible assets | 193,607.19 | 247,959.31 |
| Development expenditure | ||
| Goodwill | ||
| Long-term deferred expenses | 1,106,385.13 | 1,513,521.01 |
| Deferred income tax assets | ||
| Other non-current assets | ||
| Total non-current assets | 803,357,252.64 | 665,385,375.39 |
| Total assets | 3,084,980,216.58 | 2,997,372,055.57 |
| Current liabilities: | ||
| Short-term borrowings | 285,705,357.36 | 458,444,163.25 |
| Transactional financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 737,298,902.17 | 535,025,883.27 |
| Accounts payable | 3,759,009.04 | 1,280,357.11 |
| Advances from customers | ||
| Contract liabilities | ||
| Employee compensation payable | 18,905,560.54 | 29,251,444.37 |
| Taxes payable | 1,203,569.67 | 562,233.61 |
| Other payables | 170,451,537.10 | 132,397,663.39 |
| Including: interest payable | ||
| Dividends payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 6,014,119.95 | |
| Other current liabilities | ||
| Total current liabilities | 1,223,338,055.83 | 1,156,961,745.00 |
| Non-current liabilities: | ||
| Long-term borrowings | 28,019,758.68 | |
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual bond | ||
| Lease liabilities | 2,262,160.03 | |
| Long-term payables | ||
| Long-term employee compensation payable | ||
| Estimated liabilities |
| Deferred income | 48,978,528.78 | 52,036,600.90 |
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 79,260,447.49 | 52,036,600.90 |
| Total liabilities | 1,302,598,503.32 | 1,208,998,345.90 |
| Owner's equity: | ||
| Share capital | 602,762,596.00 | 602,762,596.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual bond | ||
| Capital reserves | 289,963,039.70 | 289,963,039.70 |
| Less: Treasury stock | ||
| Other comprehensive income | ||
| Special reserves | ||
| Surplus reserves | 332,908,397.60 | 332,908,397.60 |
| Undistributed profit | 556,747,679.96 | 562,739,676.37 |
| Total owner's equity | 1,782,381,713.26 | 1,788,373,709.67 |
| Total liabilities and owners' equity | 3,084,980,216.58 | 2,997,372,055.57 |
Legal representative: Kong Guoliang Accounting principal: Chen Yuhui CFO: Zhang Xiaoyin Head of accountingdepartment: Lin Xiaojia
3. Consolidated income statement
Unit: RMB
| Item | 2022 | 2021 |
| I. Total business income | 694,227,657.28 | 757,175,743.41 |
| Including: operating income | 694,227,657.28 | 757,175,743.41 |
| Interest income | ||
| Insurance gained | ||
| Income from service fee and commission | ||
| II. Total operating costs | 947,345,416.89 | 996,903,846.83 |
| Of which: operating costs | 804,679,323.48 | 850,260,659.40 |
| Interest expense | ||
| Service fee and commission expenditure | ||
| Cash surrender value | ||
| Net amount of expense of compensation | ||
| Net amount withdrawn for insurance liability contract reserves | ||
| Bonus expense of guarantee slip | ||
| Reinsurance expense | ||
| Tax and extras | 5,401,350.20 | 6,281,148.30 |
| Selling and distribution expenses | 375,055.78 | 928,661.79 |
| G&A expenses | 79,099,350.54 | 103,286,926.69 |
| R&D expenses | 25,647,534.39 | 20,933,712.98 |
| Financial expenses | 32,142,802.50 | 15,212,737.67 |
| Including: interest expenses | 40,218,036.98 | 30,629,953.77 |
| Interest income | 8,790,975.96 | 15,728,363.74 |
| Plus: other income | 9,333,093.72 | 7,074,336.60 |
| Investment income (“-”for losses) | 70,717,321.61 | 45,981,085.44 |
| Including: investment income on associates and joint ventures | 3,635,763.05 | -1,906,753.67 |
| 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 “-”) | -1,711,964.42 | |
| Losses of devaluation of asset (Loss is listed with “-”) | -8,946,433.92 | -327,479,010.92 |
| Income from assets disposal (Loss is listed with “-”) | 291,985.88 | 974,699.74 |
| III. Operating profit (Loss is listed with “-”) | -183,433,756.74 | -513,176,992.56 |
| Add: non-operating income | 39,600.00 | 5,261,868.99 |
| Less: non-operating expense | 2,191,784.23 | 248,216.00 |
| IV. Total profit (Loss is listed with “-”) | -185,585,940.97 | -508,163,339.57 |
| Less: income tax expense | -63,080.11 | 1,237,266.58 |
| V. Net profit (Net loss is listed with “-”) | -185,522,860.86 | -509,400,606.15 |
| (I) Classified by business continuity | ||
| 1. Continuing operation net profit (net loss is listed with “-”) | -185,522,860.86 | -509,400,606.15 |
| 2. Net profit from discontinued operation (net loss is listed with “-”) | ||
| (II) Classified by ownership | ||
| 1. Net profit attributable to shareholders of the parent company | -160,163,240.67 | -439,448,712.13 |
| 2. Minority shareholder's profit and loss | -25,359,620.19 | -69,951,894.02 |
| 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 that cannot be reclassified into profit and loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transferred to profit and loss | ||
| 3. Changes in fair value of other investments in equity instruments | ||
| 4. Changes in fair value on the credit risk of the enterprise itself | ||
| 5. Others | ||
| (II) Other comprehensive income to |
| be reclassified into profit and loss | ||
| 1. Other comprehensive income that can be transferred to profit and loss under equity method | ||
| 2. Changes in fair value of other creditors' investments | ||
| 3. Amount of financial assets reclassified into other comprehensive income | ||
| 4. Provision for credit impairment of other creditors' investments | ||
| 5. Cash flow hedging reserve | ||
| 6. Translation differences arising on translation of foreign currency financial statements | ||
| 7. Others | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | -185,522,860.86 | -509,400,606.15 |
| Total comprehensive income attributable to owners of parent company | -160,163,240.67 | -439,448,712.13 |
| Total comprehensive income attributable to minority shareholders | -25,359,620.19 | -69,951,894.02 |
| VIII. Earnings per share | ||
| (I) Basic earnings per share | -0.2657 | -0.7291 |
| (II) Diluted earnings per share | -0.2657 | -0.7291 |
Legal representative: Kong Guoliang Accounting principal: Chen Yuhui CFO: Zhang Xiaoyin Head of accountingdepartment: Lin Xiaojia
4. Profit Statement of Parent Company
Unit: RMB
| Item | 2022 | 2021 |
| I. Operating income | 423,083,901.93 | 393,181,803.59 |
| Less: operating costs | 454,563,835.47 | 409,560,912.13 |
| Tax and extras | 2,377,366.77 | 2,649,303.27 |
| Selling and distribution expenses | ||
| G&A expenses | 25,040,490.15 | 37,736,990.21 |
| R&D expenses | 14,071,545.66 | 13,090,279.46 |
| Financial expenses | -7,205,301.51 | -7,412,079.88 |
| Including: interest expenses | 29,858,590.98 | 32,363,377.89 |
| Interest income | 38,552,729.42 | 39,843,733.49 |
| Plus: other income | 5,553,834.58 | 3,610,167.05 |
| Investment income ("-" for losses) | 72,910,517.66 | 47,664,277.47 |
| Including: investment income on associates and joint ventures | 6,208,396.44 | |
| Termination of income recognition for financial assets measured by amortized cost (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 “-”) | -16,871,485.12 | -111,950,707.32 |
| Income from assets disposal (Loss is listed with “-”) | -291,564.09 | 944,667.70 |
| II. Operating profit (Loss is listed with “-”) | -4,462,731.58 | -122,175,196.70 |
| Add: non-operating income | 10,000.00 | |
| Less: non-operating expense | 1,539,264.83 | 163,100.00 |
| III. Total profit (Loss is listed with “-”) | -5,991,996.41 | -122,338,296.70 |
| Less: income tax expense | ||
| IV. Net profit (Loss is listed with “-”) | -5,991,996.41 | -122,338,296.70 |
| (I) Continuing operation net profit (net loss is listed with “-”) | -5,991,996.41 | -122,338,296.70 |
| (II) Net profit from discontinued operation (net loss is listed with “-”) | ||
| V. Net after-tax of other comprehensive income | ||
| (I) Other comprehensive income that cannot be reclassified into profit and loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transferred to profit and loss | ||
| 3. Changes in fair value of other investments in equity instruments | ||
| 4. Changes in fair value on the credit risk of the enterprise itself |
| 5. Others | ||
| (II) Other comprehensive income to be reclassified into profit and loss | ||
| 1. Other comprehensive income that can be transferred to profit and loss under equity method | ||
| 2. Changes in fair value of other creditors' investments | ||
| 3. Amount of financial assets reclassified into other comprehensive income | ||
| 4. Provision for credit impairment of other creditors' investments | ||
| 5. Cash flow hedging reserve | ||
| 6. Translation differences arising on translation of foreign currency financial statements | ||
| 7. Others | ||
| VI. Total comprehensive income | -5,991,996.41 | -122,338,296.70 |
| VII. Earnings per share | ||
| (I) Basic earnings per share | ||
| (II) Diluted earnings per share |
Legal representative: Kong Guoliang Accounting principal: Chen Yuhui CFO: Zhang Xiaoyin Head of accountingdepartment: Lin Xiaojia
5. Consolidated statement of cash flows
Unit: RMB
| Item | 2022 | 2021 |
| I. Cash flow arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 757,303,689.96 | 864,329,995.09 |
| 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, service fee 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 | 330,262,197.76 | 214,166.34 |
| Other cash received concerning operating activities | 54,083,544.34 | 51,426,395.71 |
| Sub-total of cash inflows from operating activities | 1,141,649,432.06 | 915,970,557.14 |
| Cash paid for purchasing commodities and receiving labor service | 746,137,912.91 | 721,294,436.17 |
| 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, service fee and commission |
| Cash paid for bonus of guarantee slip | ||
| Cash paid to/for staff and workers | 130,590,587.11 | 150,735,758.93 |
| Taxes paid | 31,947,280.10 | 26,215,327.00 |
| Other cash paid concerning operating activities | 25,805,249.68 | 56,983,337.11 |
| Sub-total of cash outflows from operating activities | 934,481,029.80 | 955,228,859.21 |
| Net cash flows from operating activities | 207,168,402.26 | -39,258,302.07 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 120,000,725.39 | 25,656,458.26 |
| Cash received from investment income | 57,197,267.13 | 57,648,950.11 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 1,337,042.66 | 1,807,866.50 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | ||
| Sub-total of cash inflows from investing activities | 178,535,035.18 | 85,113,274.87 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 3,306,286.80 | 44,862,987.99 |
| Cash paid for investment | 100,000,000.00 | 201,873,680.00 |
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | 180,009,000.00 | |
| Sub-total of cash outflows from investing activities | 283,315,286.80 | 246,736,667.99 |
| Net cash flows from investing activities | -104,780,251.62 | -161,623,393.12 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | 199.92 | 42,483.00 |
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries |
| Cash received from loans | 1,089,969,116.74 | 1,061,031,840.80 |
| Other cash received concerning financing activities | ||
| Sub-total of cash inflows from financing activities | 1,089,969,316.66 | 1,061,074,323.80 |
| Cash paid for settling debts | 1,191,887,723.08 | 909,092,726.75 |
| Cash paid for dividend and profit distributing or interest paying | 15,047,840.81 | 25,970,397.45 |
| Including: dividends and profits paid by subsidiaries to minority shareholders | ||
| Other cash paid concerning financing activities | 27,474,594.34 | |
| Sub-total of cash outflows from financing activities | 1,234,410,158.23 | 935,063,124.20 |
| Net cash flows from financing activities | -144,440,841.57 | 126,011,199.60 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 469,729.40 | -126,143.03 |
| V. Net increase of cash and cash equivalents | -41,582,961.53 | -74,996,638.62 |
| Add: Balance of beginning cash and cash equivalents | 689,604,633.59 | 764,601,272.21 |
| VI. Balance of ending cash and cash equivalents | 648,021,672.06 | 689,604,633.59 |
Legal representative: Kong Guoliang Accounting principal: Chen Yuhui CFO: Zhang Xiaoyin Head of accountingdepartment: Lin Xiaojia
6. Statement of cash flows of the parent company
Unit: RMB
| Item | 2022 | 2021 |
| I. Cash flow arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 719,471,315.94 | 649,301,148.13 |
| Write-back of tax received | 321,424,443.28 | 181,606.65 |
| Other cash received concerning operating activities | 266,804,943.28 | 274,118,435.89 |
| Sub-total of cash inflows from operating activities | 1,307,700,702.50 | 923,601,190.67 |
| Cash paid for purchasing commodities and receiving labor service | 356,279,013.18 | 358,851,605.45 |
| Cash paid to/for staff and workers | 85,583,891.95 | 109,824,916.40 |
| Taxes paid | 13,597,429.91 | 2,921,107.01 |
| Other cash paid concerning operating activities | 17,608,551.99 | 392,790,366.22 |
| Sub-total of cash outflows from operating activities | 473,068,887.03 | 864,387,995.08 |
| Net cash flows from operating activities | 834,631,815.47 | 59,213,195.59 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 110,000,725.39 | 25,656,458.26 |
| Cash received from investment income | 57,194,268.15 | 57,048,950.11 |
| Net cash received from disposal of fixed, intangible and other long-term assets | 1,337,042.66 | 1,751,974.50 |
| Net cash received from disposal of subsidiaries and other units | ||
| Other cash received concerning investing activities | 20,061,163.76 | |
| Sub-total of cash inflows from investing activities | 188,593,199.96 | 84,457,382.87 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 1,639,514.07 | 41,299,271.44 |
| Cash paid for investment | 100,000,000.00 | 72,873,680.00 |
| Net cash received from subsidiaries and other units obtained | 559,800.08 | 118,957,517.00 |
| Other cash paid concerning investing activities | 342,762,500.00 | |
| Sub-total of cash outflows from investing activities | 444,961,814.15 | 233,130,468.44 |
| Net cash flows from investing activities | -256,368,614.19 | -148,673,085.57 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | ||
| Cash received from loans | 507,211,616.74 | 961,031,840.80 |
| Other cash received concerning financing activities | 13,000,000.00 | |
| Sub-total of cash inflows from financing activities | 520,211,616.74 | 961,031,840.80 |
| Cash paid for settling debts | 1,011,887,723.08 | 909,092,726.75 |
| Cash paid for dividend and profit distributing or interest paying | 15,044,841.83 | 25,970,397.45 |
| Other cash paid concerning financing activities | 39,068,511.01 | |
| Sub-total of cash outflows from financing activities | 1,066,001,075.92 | 935,063,124.20 |
| Net cash flows from financing activities | -545,789,459.18 | 25,968,716.60 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | 3,994.89 | -1,906.92 |
| V. Net increase of cash and cash equivalents | 32,477,736.99 | -63,493,080.30 |
| Add: Balance of beginning cash and cash equivalents | 592,751,213.88 | 656,244,294.18 |
| VI. Balance of ending cash and cash equivalents | 625,228,950.87 | 592,751,213.88 |
Legal representative: Kong Guoliang Accounting principal: Chen Yuhui CFO: Zhang Xiaoyin Head of accountingdepartment: Lin Xiaojia
7. Consolidated statement of changes in owner's equity
Amount for the current period
Unit: RMB
| Item | 2022 | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority equity | Total owner's equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Special reserves | Surplus reserves | General risk reserves | Undistributed profit | Others | Subtotal | |||||
| Preferred shares | Perpetual bond | Others | |||||||||||||
| I. Balance at the end of the last year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 319,351,219.81 | 1,615,293,135.51 | -36,951,220.07 | 1,578,341,915.44 | |||||||
| Add: Changes of accounting policy | |||||||||||||||
| Adjustments for correction of accounting errors in prior year | |||||||||||||||
| Business combination under same control | |||||||||||||||
| Others | |||||||||||||||
| II. Beginning balance of the current year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 319,351,219.81 | 1,615,293,135.51 | -36,951,220.07 | 1,578,341,915.44 | |||||||
| III. Increase/ decrease in this year (Decrease is listed with “-”) | -160,163,240.67 | -160,163,240.67 | -25,359,620.19 | -185,522,860.86 | |||||||||||
| (i) Total comprehensive income | -160,163,240.67 | -160,163,240.67 | -25,359,620.19 | -185,522,860.86 | |||||||||||
| (2) Owners’ devoted and decreased capital | |||||||||||||||
| 1. Ordinary shares contributed by the owner | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Others | |||||||||||||||
| (III) Profit distribution | |||||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal carry-forward of owners' equity | |||||||||||||||
| 1. Capital reserves conversed to capital (or share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (or share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve |
| 4. Carry-forward of changes in defined benefit plans for retained earnings | |||||||||||||||
| 5. Carry-forward of other comprehensive income to retained earnings | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserves | |||||||||||||||
| 1. Withdrawal in the current period | 879,946.49 | 879,946.49 | 879,946.49 | ||||||||||||
| 2. Usage in the current period | 879,946.49 | 879,946.49 | 879,946.49 | ||||||||||||
| (VI) Others | |||||||||||||||
| IV. Balance at the end of the current period | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 0.00 | 332,908,397.60 | 159,187,979.14 | 1,455,129,894.84 | -62,310,840.26 | 1,392,819,054.58 |
Legal representative: Kong Guoliang Accounting principal: Chen Yuhui CFO: Zhang Xiaoyin Head of accounting department: Lin Xiaojia
Amount for the previous period
Unit: RMB
| Item | 2021 | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority equity | Total owner's equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Special reserves | Surplus reserves | General risk reserves | Undistributed profit | Others | Subtotal | |||||
| Preferred shares | Perpetual bond | Others | |||||||||||||
| I. Balance at the end of the last 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 | |||||||||||||||
| Adjustments for correction of accounting errors in prior year | |||||||||||||||
| Business combination under same control | |||||||||||||||
| Others | |||||||||||||||
| II. 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 this year (Decrease is listed with “-”) | -439,448,712.13 | -439,448,712.13 | -69,951,894.02 | -509,400,606.15 | |||||||||||
| (I) Total comprehensive income | -439,448,712.13 | -439,448,712.13 | -69,951,894.02 | -509,400,606.15 | |||||||||||
| (II) Owners’ devoted and decreased capital | |||||||||||||||
| 1. Ordinary shares contributed by | |||||||||||||||
| the owner | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Others | |||||||||||||||
| (III) Profit distribution | |||||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal carry-forward of owners' equity | |||||||||||||||
| 1. Capital reserves conversed to capital (or share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (or share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4. Carry-forward of changes in defined benefit |
| plans for retained earnings | |||||||||||||||
| 5. Carry-forward of other comprehensive income to retained earnings | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserves | |||||||||||||||
| 1. Withdrawal in the current period | |||||||||||||||
| 2. Usage in the current period | |||||||||||||||
| (VI) Others | |||||||||||||||
| IV. Balance at the end of the current period | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 319,351,219.81 | 1,615,293,135.51 | -36,951,220.07 | 1,578,341,915.44 |
Legal representative: Kong Guoliang Accounting principal: Chen Yuhui CFO: Zhang Xiaoyin Head of accounting department: Lin Xiaojia
8. Statement of changes in owners' equity of the parent company
Amount for the current period
Unit: RMB
| Item | 2022 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Special reserves | Surplus reserves | Undistributed profit | Others | Total owner's equity | |||
| Preferred shares | Perpetual bond | Others | ||||||||||
| I. Balance at the end of the last year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 562,739,676.37 | 1,788,373,709.67 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Adjustments for correction of accounting errors in prior year | ||||||||||||
| Others | ||||||||||||
| II. Beginning balance of the current year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 562,739,676.37 | 1,788,373,709.67 | |||||||
| III. Increase/ decrease in this year (Decrease is listed with “-”) | -5,991,996.41 | -5,991,996.41 | ||||||||||
| (I) Total comprehensive income | -5,991,996.41 | -5,991,996.41 | ||||||||||
| (II) Owners’ devoted and decreased capital | ||||||||||||
| 1. Ordinary shares contributed by the owner | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Others | ||||||||||||
| (III) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | ||||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carry-forward of owners' equity | ||||||||||||
| 1. Capital reserves conversed to capital (or share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (or share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry-forward of changes in defined benefit plans for retained earnings | ||||||||||||
| 5. Carry-forward of other comprehensive income to retained earnings | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special |
| reserves | ||||||||||||
| 1. Withdrawal in the current period | 434,489.58 | |||||||||||
| 2. Usage in the current period | 434,489.58 | |||||||||||
| (VI) Others | ||||||||||||
| IV. Balance at the end of the current period | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 556,747,679.96 | 1,782,381,713.26 |
Legal representative: Kong Guoliang Accounting principal: Chen Yuhui CFO: Zhang Xiaoyin Head of accounting department: Lin Xiaojia
Amount for the previous period
Unit: RMB
| Item | 2021 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Special reserves | Surplus reserves | Undistributed profit | Others | Total owner's equity | |||
| Preferred shares | Perpetual bond | Others | ||||||||||
| I. Balance at the end of the last 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 | ||||||||||||
| Adjustments for correction of accounting errors in prior year | ||||||||||||
| Others | ||||||||||||
| II. 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 this year (Decrease is listed with “-”) | -122,338,296.70 | -122,338,296.70 | ||||||||||
| (I) Total comprehensive income | -122,338,296.70 | -122,338,296.70 | ||||||||||
| (II) Owners’ devoted and decreased capital | ||||||||||||
| 1. Ordinary shares contributed by | ||||||||||||
| the owner | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Others | ||||||||||||
| (III) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | ||||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carry-forward of owners' equity | ||||||||||||
| 1. Capital reserves conversed to capital (or share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (or share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4. Carry- |
| forward of changes in defined benefit plans for retained earnings | ||||||||||||
| 5. Carry-forward of other comprehensive income to retained earnings | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserves | ||||||||||||
| 1. Withdrawal in the current period | ||||||||||||
| 2. Usage in the current period | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Balance at the end of the current period | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 562,739,676.37 | 1,788,373,709.67 |
Legal representative: Kong Guoliang Accounting principal: Chen Yuhui CFO: Zhang Xiaoyin Head of accounting department: Lin Xiaojia
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page1
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements off 2022(Unless otherwise stated, the amount of unit is RMB/CNY)I. Company profile(I) ProfileShenzhen Nanshan Power Co., Ltd. (hereinafter, “Company” or “the Company” ) was reorganizedto be a joint-stock enterprise from a foreign investment enterprise on November 25, 1993, uponthe approval of General Office of Shenzhen Municipal Government with Document Shen Fu BanFu [1993] No.897.After approved by Document Shen Zheng Ban Fu [1993] No.179 issued by Shenzhen SecuritiesRegulatory Office, on January 3, 1994, the Company offered 40,000,000 RMB ordinaryshares and 37,000,000 domestically listed foreign shares in and out of China. And theRMB ordinary shares (A-stock) and domestically listed foreign listed shares (B-stock) were listedin Shenzhen Stock Exchange successively on July 1, 1994 and Nov. 28, 1994.Headquarter of the Company is located on 16/F, 17/F, Han Tang Building, OCT, Nanshan District,Shenzhen City, Guangdong Province, P.R.C.This financial statements will be approved by the Company's Board of Directors for publication onApril 4, 2023.(ii) Scope of financial statements(I) There are 9 subsidiaries included in the scope of consolidated financial statements of theCompany in the current period, including:
| Name of subsidiary | Shareholding 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) (“Zhuhai Hengqin”) | 99.96 |
For details of the scope of the consolidated financial statements and the changes thereof, pleaserefer to VI. Changes of Consolidation Scope and VII. Equities in Other Entities.II. Basis for preparation of financial statements
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page2
（I）Basis of PreparationThe Company’s financial statements have been prepared based on the continuing operation andthe actual transactions and events. In accordance with the Accounting Standards for BusinessEnterprises- Basic Norms and every specific accounting rules, the application guidelines of theAccounting Standards for Business Enterprises, interpretations and other related rules of theAccounting Standards for Business Enterprises (hereinafter referred to as “ASBEs”), and thedisclosure requirements of the Regulation on the Preparation of Information Disclosures ofCompanies Issuing Public Shares, No. 15- General Requirements for Financial Reports of ChinaSecurities Regulatory Commission.(II) Continuing operationThe Company is capable of continuing operation for 12 months from the end of the reportingperiod, and there are no major issues affecting the ability to go concern.III Major accounting policies and accounting estimatesThe Company together with its subsidiaries is mainly engaged in businesses as production ofpower and heat, power plant construction, fuel trading, engineering consulting and sludge drying.According to the actual production and operation characteristics. The Company and itssubsidiaries establish certain specific accounting policies and accounting estimates in respect oftheir transactions and matters such as sales income recognition pursuant to relevant businessaccounting principles. Details are set out in (24) Income under Note III.(I) Statement on observation of Accounting Standards for Business EnterprisesThe financial statements of the Company comply with the requirements of ASBE issued by theMinistry of Finance, and present a true and complete view of the consolidated and parentcompany’s financial status as of December 31, 2022 and the consolidated and parent company’soperation results and cash flow for the year of 2022.(II) Accounting periodA fiscal year shall be from January 1 to December 31 of the Gregorian calendar.(III) Operating cycleThe Company takes 12 months of a year as the normal operating cycle, and takes the operatingcycle as the standard for the liquidity division of assets and liabilities.(IV) Book-keeping standard currencyThe book-keeping standard currency of the Company is RMB (CNY).(V) Accounting treatment method of business combination under the same control andunder the different controlBusiness combination under the same control: The assets and liabilities obtained by the combiningparty in business combination are measured at the book value of the consolidated financialstatements of the ultimate controlling party in accordance with the assets and liabilities of thecombined party on the date of combination. The difference between the book value of the netassets obtained and the book value of the consideration paid for the combination (or the aggregatenominal value of shares issued as consideration) is charged to the share capital premium in capitalreserve. If the share capital premium in capital reserve is not sufficient to absorb the difference,any excess shall be adjusted against retained earnings.Business combinations not under the same control: The purchaser's assets paid and liabilitiesincurred or assumed on the date of purchase as a consideration of business combination aremeasured at fair value, and the difference between the fair value and its book value is included inthe current profit and loss. Where the cost of a business combination exceeds the acquirer’sinterest in the fair value of the acquiree’s identifiable net assets, the difference is recognized asgoodwill; where the cost of a business combination less than the acquirer’s interest in the fairvalue of the acquiree’s identifiable net assets, reckoned into current profits/losses after double-check.
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page3
The directly relevant fees incurred in the merger of enterprises shall be reckon into thecurrent profits/losses when incurred; the transaction costs of issuing equity securities or debtsecurity for the purpose of business combination should be reckon into the initial recognition ofequity security or debt security.(VI) Preparation methods for consolidated financial statements
1. Scope of consolidation
The consolidation scope of the consolidated financial statements is determined on the basis ofcontrol and includes the Company and all its subsidiaries.
2. Consolidation procedures
Based on the financial statements of itself and its subsidiaries, the Company compiles theconsolidated financial statements in line with other relevant information. The Company compilesconsolidated 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 groupin accordance with the relevant accounting standards' recognition, measurement and presentationrequirements and in accordance with unified accounting policies.The accounting policies and accounting periods adopted by all subsidiaries included in theconsolidation scope of the consolidated financial statements are consistent with the Company. Ifthe accounting policies and accounting periods adopted by the subsidiaries are inconsistent withthe Company, when preparing the consolidated financial statements, make necessary adjustmentsaccording to the accounting policies and accounting periods of the Company. For a subsidiaryacquired through a business combination not under the same control, its financial statements areadjusted 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 financialstatements are adjusted based on the book value of its assets and liabilities (including the goodwillformed by the ultimate controlling party's acquisition of the subsidiary) in the ultimate controllingparty's financial statements.The subsidiary's owner's equity, current net profit or loss and the share of current comprehensiveincome belonging to minority shareholders are separately listed under the owner's equity item inthe consolidated balance sheet, under the net profit item in the consolidated income statement andunder the total comprehensive income item. If the current loss shared by the minorityshareholders of a subsidiary exceeds the minority shareholder' share in the owner's equity of thesubsidiary at the beginning of the period, the balance shall offset against the minority shareholders'equity.
(1) Increase of subsidiaries or businesses
During the reporting period, if a subsidiary or business is added due to a business combinationunder the same control, adjust the opening balance of the consolidated balance sheet; incorporatethe income, expenses, and profits of the subsidiary or business combination from the beginning ofthe current period to the end of the reporting period into the consolidated incomestatement; incorporate the cash flows of the subsidiary or business combination from thebeginning of the current period to the end of the reporting period into the consolidated cash flowstatement, and adjust the relevant items of the comparative statement as if the consolidatedreporting entity had been existing since the time when the ultimate controlling party begancontrolling.Where it is possible to exercise control over an investee under the same control due to additionalinvestment, all parties participating in the combination are deemed to have adjusted in theircurrent state when the ultimate controlling party commenced control. The equity investment heldbefore the control of the combined party is obtained, the relevant profit or loss and othercomprehensive income that have been confirmed between the date of acquisition of the originalequity and the date on which the combining party and the combined party are under the samecontrol 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 comparativestatements.
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page4
During the reporting period, if a subsidiary or business is added due to a business combination notunder the same control, the opening balance of the consolidated balance sheet period will not beadjusted; the income, expenses, and profits of the subsidiary or business from the acquisition dateto the end of the reporting period will be included in the consolidated income statement; the cashflows of the subsidiary or business from the acquisition date to the end of the reporting period areincluded in the consolidated statement of cash flow.For reasons such as additional investments that can control an investee not under the same control,the Company remeasures the equity of the acquiree held before the purchase date according to thefair value of the equity on the purchase date, and the balance between the fair value and its bookvalue is included in the current investment income. If the equity of the acquiree held before thepurchase date involves other comprehensive income under the equity method and other changes inowner's equity other than net profit or loss, other comprehensive income and profit distribution,other comprehensive income and other changes in owner's equity related to it shall be convertedinto 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 netassets of the defined benefit plan of the investee.
(2) Disposal of subsidiaries or businesses
① General treatment methods
During the reporting period, when the Company disposes of a subsidiary or business, the income,expenses and profits of the subsidiary or business from the beginning of the period to the disposaldate are included in the consolidated income statement, while the cash flow of the subsidiary orthe business from the beginning of the period to the disposal date is included in the consolidatedstatement of cash flow.For control rights loss in original subsidiary for partial equity investment disposal or other reasons,the remained equity should re-measured based on the fair value at date of control losses. Thedifference between the net assets of original subsidiary share by proportion held that sustainablecalculated since purchased date (or combination date) and sum of consideration obtained by equitydisposal and fair value of remain equity, reckoned into the current investment income of controlrights loss. Other comprehensive income related to the original subsidiary's equity investment orother changes in owner's equity other than net profit and loss, other comprehensive income andprofit distribution will be converted to current investment income when the control is lost, exceptfor other comprehensive income arising from the remeasurement of the net liabilities or changes innet assets of the defined benefit plan of the investee.If other investors’ capital increases in the subsidiary results in a decline in the Company'sshareholding ratio and thus loss of control power, accounting shall be conducted in accordancewith the above principles.
② Disposal of subsidiaries by stages
When the Company disposes of equity investment in a subsidiary by a stage-up approach withseveral transactions until the control over the subsidiary is lost, these several transactions relatedto the disposal of equity investment in a subsidiary are accounted for as transactions in a basketwhen the terms, conditions and economic impacts of these several transactions meet the followingone or more conditions:
i. these transactions are entered into at the same time or after considering their impacts on eachother;ii. these transactions as a whole can reach complete business results;iii. the occurrence of a transaction depends on at least the occurrence of another transaction;iv. an individual transaction is not deemed as economic, but is deemed as economic whenconsidered with other transactions.When several transactions related to the disposal of equity investment in a subsidiary until thecontrol over the subsidiary is lost fall within transactions in a basket, each of which is accountedfor as disposal of a subsidiary with a transaction until the control over a subsidiary is
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page5
lost; however, the different between the amount of disposal prior to the loss of control and the netassets of a subsidiary attributable to the disposal investment shall be recognized as othercomprehensive income in consolidated financial statements and transferred to profit or loss for theperiod at the time when the control is lost.If the transactions that dispose of the equity investment in the subsidiary until the loss of controldo not belong to the package transaction, before the loss of control, the relevant policies for partialdisposal of the equity investment in the subsidiary shall be accounted for without losingcontrol. When the control right is lost, the accounting treatment shall be carried out according tothe general treatment method for disposing of the subsidiary.
(3) Purchase of minority shares in subsidiaries
The difference between the Company's newly acquired long-term equity investment due to thepurchase of minority shares and the net assets share calculated continuously by the subsidiaryfrom the date of purchase (or merger date) in accordance with the calculation of the newlyincreased shareholding ratio, adjust the equity premium in the capital reserve in the consolidatedbalance sheet, if the equity premium in the capital reserve is insufficient to offset, adjust theretained earnings.
(4) Partial disposal of equity investments on subsidiaries without loss of control
The difference between the disposal cost obtained as a result of partial disposal of long-termequity investment in a subsidiary without losing control and the net assets share calculatedcontinuously by the subsidiary from the date of purchase or merger corresponding to the disposalof the long-term equity investment, adjust the equity premium in the capital reserve in theconsolidated balance sheet, if the equity premium in the capital reserve is insufficient to offset,adjust the retained earnings.(VII)Classification of joint venture arrangements and accounting treatment methodJoint venture arrangements is divided into joint operation and joint ventures.As a joint party of the joint arrangement, it is a joint operation when the Company enjoys assetsrelated 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 in accordance with the provisions of the relevant accounting standards for accountingtreatment:
(1) Recognize the assets held solely by the Company, and recognize assets held jointly by theCompany in appropriation to the share of the Company;
(2) Recognize the obligations assumed solely by the Company, and recognize obligations assumedjointly by the Company in appropriation to the share of the Company;
(3) Recognize income 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 (13) Long-term equityinvestment under Note III.(VIII)Determination criteria of cash and cash equivalentWhile preparing the cash flow statement, the stock cash and savings available for payment at anytime are recognized as cash. The investments meets the follow four conditions at the same timeare recognized as cash equivalent, that is short-term (normally fall due within three months fromthe date of acquisition) and highly liquid investments held the Group which are readily convertibleinto known amounts of cash and which are subject to insignificant risk of value change.(IX)Foreign currency business and foreign currency statement translation
1. Foreign currency business
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page6
Foreign currency business uses the spot exchange rate on the transaction date as the conversionrate to convert foreign currency amounts into RMB for accounting.The balance of foreign currency monetary items at the balance sheet date is converted at the spotexchange rate on the balance sheet date, the resulting exchange difference is included in currentprofit and loss, except that the exchange difference arising from foreign currency specialborrowings related to the acquisition or construction of assets eligible for capitalization is disposedwith the principle of borrowing expenses capitalization.
2. Foreign currency statement translation
Assets and liabilities in the balance sheet are converted at the spot exchange rate on the balancesheet date; the owners' equity items are converted at the spot exchange rate at the time ofoccurrence, except for the “undistributed profit” item. The income and expense items in theincome statement are converted at the spot exchange rate on the transaction date.When disposing of an overseas operation, the translation difference in the foreign currencyfinancial statements related to the overseas operation is transferred from the owner's equity item tothe disposal of current profit or loss.(X) Financial instrumentsFinancial instrument consist of financial assets, financial liability and equity instrument.
1. Classification of financial instruments
Based on the Company's business model for managing financial assets and the contractual cashflow characteristics of financial assets, financial assets are classified as the financial assetsmeasured at amortized cost, the financial assets (debt instruments) measured at fair value andwhose changes are included in other comprehensive income and the financial assets measured atfair value and whose changes are included in current profit and loss at initial recognition.Business model to collect the contractual cash flow, and the contractual cash flow is only thepayment of the principal and the interest based on the outstanding principal amount, is classifiedas a financial asset measured at amortized cost; business model to collect the contractual cashflow and sell the financial asset, and the contractual cash flow is only the payment of principal andthe interest based on the outstanding principal amount, is classified as a financial asset measuredat fair value and whose changes are included in other comprehensive income (debtinstruments); other financial assets other than these are classified as financial assets measured atfair value and whose changes are included in the current profit and loss.For a non-tradable equity instrument investment, the Company determines at the time of initialrecognition whether to designate it as a financial asset (equity instrument) measured at fair valueand whose changes are included in other comprehensive income.At the time of initial recognition, financial liabilities are classified into financial liabilities that aremeasured at fair value and whose changes are included in the current profit and loss and financialliabilities that are measured at amortized cost.A financial liability that meets one of the following conditions can be designated as a financialliability measured at fair value and whose changes are included in current profit and loss at initialmeasurement:
1) This designation can eliminate or significantly reduce accounting mismatches.
2) In accordance with the corporate risk management or investment strategy stated in formalwritten documents, make management and performance evaluation to financial liability portfoliosor financial assets and financial liability portfolios based on fair value, and report to the keymanagement personnel within the enterprise based on this.
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 mainlyinclude: (specific description of the designated situation).
2. Recognition basis and measurement method of financial instruments
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page7
(1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include bills receivable, accounts receivable, otherreceivables, long-term receivables, debt investment, etc., which are initially measured at fairvalue, and related transaction costs are included in the initially recognized amount; accountsreceivable excluding significant financing components and accounts receivable with financingcomponents not exceeding one year that the Company decides not to consider are initiallymeasured at the contract transaction price.The interest calculated by using the effective interest method during the holding period is includedin the current profit and loss.When taking back or disposing, the difference between the cost obtained and the book value of thefinancial asset is included in the current profit and loss.
(2) Financial assets (debt instrument) measured at fair value and whose changes are reckoned intoother comprehensive incomeThe financial assets (debt instrument) measured at fair value and whose changes are reckoned intoother comprehensive income consist of receivable financing and other debt investment andinitially measured at fair value, relevant transaction fees are included in initial recognizedamount. The financial assets are subsequently measured at fair value, and the fair value changesare reckoned into other comprehensive income except for the interest, impairment loss or gain andexchange profits and losses calculated by actual interest rate method.Upon termination of the recognition, the accumulated profits and losses previously included inother comprehensive income shall be transferred out and reckoned into current profit and loss.
(3) Financial assets (equity instrument) measured at fair value and whose changes are reckonedinto other comprehensive incomeThe financial assets (equity instrument) measured at fair value and whose changes are reckonedinto other comprehensive income consist of the equity instrument investment etc. and initiallymeasured at fair value, relevant transaction fees are included in initial recognized amount. Thefinancial assets are subsequently measured at fair value, and the fair value changes are reckonedinto other comprehensive income. The financial assets are subsequently measured at fair value,and the fair value changes are reckoned into other comprehensive income.Upon termination of the recognition, the accumulated gains or losses previously included in othercomprehensive income shall be transferred out and reckoned into retained earnings.
(4) Financial assets measured at fair value and whose changes are reckoned intocurrent profits/lossesThe financial assets measured at fair value and whose changes are reckoned intocurrent profits/losses consist of trading financial assets, derivative financial assets and other non-current financial assets etc. and initially measured at fair value, relevant transaction fees areincluded in current profits/losses. The financial assets are subsequently measured at fair value,and the fair value changes are reckoned into current profits/losses.
(5) Financial liability measured at fair value and whose changes are reckoned intocurrent profits/lossesThe financial liability measured at fair value and whose changes are reckoned intocurrent profits/losses consist of trading financial liability and derivative financial liability etc. andinitially measured at fair value, relevant transaction fees are included in current profits/losses. Thefinancial liabilities are subsequently measured at fair value, and the fair value changes arereckoned into current profits/losses.Upon termination of the recognition, the difference between its book value and the considerationpaid is included in the current profits/losses.
(6) Financial liability measured at amortized cost
The financial liabilities measured at amortized cost consist of short-term loans, note payable,
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page8
account payable, other account payable, long-term loans, bond payable and long-term accountpayable, and initially measured at fair value, relevant transaction fees are included in initialrecognized amount.The interest calculated by using the effective interest method during the holding period is includedin the current profit and loss.Upon termination of the recognition, the difference between consideration paid and the book valueof financial liability is reckoned into current profits/losses.
3. Recognition basis and measurement method for transfer of financial assetsIn the event of financial asset transfer, the Company shall assess the degree of risk and reward ofretaining the ownership of the financial asset and deal with the following circumstancesrespectively:
(1) Where almost all risks and rewards on the ownership of a financial asset are transferred, therecognition of the financial asset shall be terminated, and the rights and obligations generated orretained in the transfer shall be separately recognized as assets or liabilities.
(2) Where almost all risks and rewards on the ownership of a financial asset are retained, thefinancial asset shall continue to be recognized.
(3) Where virtually all risks and rewards on the ownership of a financial asset are neithertransferred nor retained (that is, other conditions except for (1) and (2) of this Article), dependingon whether it retains control of the financial asset, deal with the following circumstancesrespectively:
1) Where the control of such financial asset is not retained, the recognition of the financial asset isterminated, and the rights and obligations generated or reserved in the transfer are identified as anasset or liability.
2) Where the control of such financial asset is retained, the relevant financial assets shall continueto be recognized according to the extent of its continued involvement in the transferred financialassets, and the relevant liabilities shall be recognized accordingly. The extent of continuedinvolvement in the transferred financial assets refers to the extent of the risk or reward of changesin the value of the transferred financial asset assumed by the Company.When judging whether the financial asset transfer meets the termination of recognition of the saidfinancial asset, adopt the principle of substance over form. The company divides the financialasset transfer into overall transfer and partial transfer of financial asset.
(1) Where the overall transfer of financial assets meets the conditions for recognizing thetermination, the difference between the following two amounts shall be recorded into the profitsand losses of the current period:
1) The book value 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 amountcorresponding to the portion of which the recognition is terminated of the accumulated amount ofchanges in fair value originally included in other comprehensive income (The financial assetsinvolved in transfer are measured at fair value and their changes are included in othercomprehensive income).
(2) Where the financial asset is partially transferred and the transferred portion overall meets theconditions for recognizing the termination, the book value of overall financial asset before transfershall be apportioned between the portion to be terminated from recognition and the portioncontinued to be recognized (In such circumstances, the retained service assets shall be regarded asa portion of the financial assets continuing to be recognized) in accordance with their relative fairvalue on the transfer date, and the difference between the following two amounts shall be recordedinto the profits and losses of current period.
1) The book value 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
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page9
terminated and the amount corresponding to the portion of which the recognition is terminated ofthe accumulated amount of changes in fair value originally and directly included in othercomprehensive income (The financial assets involved in transfer are measured at fair value andtheir changes are included in other comprehensive income).If the transfer of financial assets does not meet the conditions for derecognition, the financialassets are continuously recognized, and the consideration received is recognized as a financialliability.
4. Derecognition criteria of financial liabilities
Where the current obligation of a financial liability have been discharged in whole or in part, therecognition of the financial liability or part thereof shall be terminated; if the Company enteredinto an agreement with its creditors to replace its existing financial liabilities with the newfinancial liability, and the contract terms of the new financial liabilities and the existing financialliabilities are substantially different, the existing financial liabilities shall be terminated forrecognition and the new ones shall be recognized at the same time.As for substantive changes made to the contract terms (in whole or in part) of the existingfinancial liabilities, the existing financial liabilities (or part of it) will be terminated forrecognition, and the financial liabilities after term revision will be recognized as a new financialliability.When a financial liability is derecognized in whole or in part, the difference between the bookvalue of the financial liability derecognized and the consideration paid (including the non-cashassets transferred out or the new financial liabilities assumed) is included in the current profit andloss.If the Company repurchases part of the financial liabilities, the entire book value of the financialliabilities will be allocated on the repurchase date according to the relative fair value of thecontinuing recognition part and the derecognition part. The difference between the book valueallocated to the derecognition part and the consideration paid (including the transferred non-cashassets or assumed new financial liabilities) is included in the current profit and loss.
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 usingquotes in the active market. For financial instruments that do not have an active market, valuationtechniques are used to determine their fair values. In the valuation, the Company adopts valuationtechniques that are applicable under the current circumstances and have sufficient available dataand other information support, chooses the input values consistent with the characteristics ofassets or liabilities considered by market participants in the transactions of related assets orliabilities, 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.
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 atamortized cost by the single or combined way and financial assets (debt instruments) measured atfair value and whose changes are included in other comprehensive income. The measurement ofexpected credit losses depends on whether a significant increase in credit risk has occurred sincethe initial recognition of a financial asset.If the credit risk of the financial instrument has increased significantly since initial recognition, theCompany shall measure its loss provision at an amount equivalent to the expected credit lossthroughout the life of the financial instrument. If the credit risk of the financial instrument has notincreased significantly since initial recognition, the Company shall measure its loss provision at anamount equivalent to the expected credit loss of the financial instrument in the next 12months. The increased or returned amount of the loss provision thus formed shall be included inthe current profit and loss as impairment losses or gains.Usually, the Company considers that the credit risk of the financial instrument has increased
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page10
significantly when it is overdue for more than 30 days, unless there is conclusive evidence that thecredit risk of the financial instrument has not increased significantly after initial recognition.If the credit risk of a financial instrument at the balance sheet date is low, the Company willconsider that the credit risk of the financial instrument has not increased significantly since initialrecognition.Regarding the note receivable, account receivables and receivables financing, whether or not itcontains a significant financing component, the Company always measures its loss provisions atan amount equivalent to the expected credit loss throughout the duration.For lease receivables and long-term receivables formed by the Company through sales of goods orrendering of services, the Company always chooses to measure the loss reserves at an amountequivalent to expected credit losses during the entire duration.For notes receivable, accounts receivable, other receivables, financing of accounts receivable andlong-term receivables with objective evidence showing that there is impairment and is applicableto individual assessment, perform separate impairment tests, confirm expected credit losses, andmake provisions for impairment; for notes receivable, accounts receivable, other receivables, andfinancing of accounts receivable for which there is no objective basis for impairment, or whenthere is insufficient evidence to assess expected credit losses at a reasonable cost at the level ofindividual instruments, the Company refers to historical credit loss experience, combines withcurrent conditions and judgments on future economic conditions, and divides the notes receivable,accounts receivable, other receivables, financing of accounts receivable and long-term receivablesinto several portfolios based on the characteristics of credit risk, and calculates the expected creditloss on the basis of the portfolio. for notes receivable, accounts receivable, other receivables, andfinancing of accounts receivable for which there is no objective basis for impairment, or whenthere is insufficient evidence to assess expected credit losses at a reasonable cost at the level ofindividual instruments, the Company refers to historical credit loss experience, combines withcurrent conditions and judgments on future economic conditions, and divides the notes receivable,accounts receivable, other receivables, financing of accounts receivable and long-term receivablesinto several portfolios based on the characteristics of credit risk, and calculates the expected creditloss on the basis of the portfolio.
(1) Notes receivable
| Name of portfolio | Methods of measuring credit losses |
| 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) Accounts receivable
| Name of portfolio | Methods of measuring credit losses |
| Electricity transaction receivable | Accounts receivable classified as electricity transactions, project operation and maintenance and environmental protection services; 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. |
| Receivables for project operation and maintenance | |
| Receivables for environmental protection services |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page11
(3) Other receivables
| Name of portfolio | Methods of measuring credit losses |
| 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 provision for bad debts is made. |
| Portfolio of deposit, security deposit and reserve fund | |
| Other receivables and temporary payments except for the above portfolios |
(4) Receivables financing
| Name of portfolio | Methods of measuring credit losses |
| Bank acceptance bill of banks with lower credit risk rating | 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 |
(XI) Inventories
1. Classification of inventories
Inventories mainly include fuel, raw materials, etc.
2. Valuation method of delivered inventory
The inventories are valued on a weighted average basis at the time of delivery.
3. Basis for determining the net realizable value of different types of inventoriesThe net realizable value of the inventory held for the execution of the sales contract or laborservice contract is calculated on the basis of the contract price. If the quantity of the inventory heldis more than the quantity ordered by the sales contract, the net realizable value of the excessinventory is calculated based on the general sales price. The net realizable value of the inventoryheld for the execution of the sales contract or labor service contract is calculated on the basis ofthe 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 generalsales price. The net realizable value of the inventory held for the execution of the sales contract orlabor service contract is calculated on the basis of the contract price. If the quantity of theinventory held is more than the quantity ordered by the sales contract, the net realizable value ofthe 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 inventoryitem; but for inventory with a large quantity and low unit price, provision for inventorydepreciation is made based on the inventory category. For inventories that are related to theproduct 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, the inventory depreciation reserve shallbe accrued in a consolidated manner.
4. Inventory system
The perpetual inventory system is adopted.
5. Amortization method of low-value consumables and packaging
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page12
(1) Low-value consumables - one pass method;
(2) Packaging - one pass method
(XII) Contract assetsThe Company's unconditional (that is, only depending on the time lapses) right to collectconsideration from customers are separately listed as receivables. The Company's unconditional(that is, only depending on the time lapses) right to collect consideration from customers areseparately listed as receivables.The Company's determination method and accounting treatment method for the expected creditloss of contract assets are detailed in Note III/(10)
6. Impairment of financial instruments.
(XIII) Long-term equity investments
1. Judgement criteria for joint control and significant influence
Joint control is the Company’s contractually agreed sharing of control over an arrangement, whichrelevant activities of such arrangement must be decided by unanimously agreement from partieswho share control. Where the Company and other joint ventures exercise joint control over theinvestee and enjoy the rights to the net assets of the investee, the investee is a joint venture of theCompany.Significant influence is the right of the Company to participate in the financial and operationdecision-making of an enterprise, but not to control or jointly control the formulation of suchpolicies with other parties. Where the Company is able to exert significant influence on theinvestee, the investee shall be a joint venture of the Company.
2. Determination of initial investment cost
(1) Long-term equity investment formed by business combination
If it is possible to control the investee under the same control due to additional investments, etc.,the initial investment cost of long-term equity investment shall be determined based on the shareof the book value of the net assets of the combined party in the consolidated financial statementsof the ultimate controlling party on the merger date. If it is possible to control the investee underthe same control due to additional investments, etc., the initial investment cost of long-term equityinvestment 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 themerger date. If it is possible to control the investee under the same control due to additionalinvestments, etc., the initial investment cost of long-term equity investment shall be determinedbased on the share of the book value of the net assets of the combined party in the consolidatedfinancial statements of the ultimate controlling party on the merger date.Business combination not under the same control: The Company uses the combination costdetermined on the purchase date as the initial investment cost of the long-term equityinvestment. If it is possible to exercise control over an investee that is not under the same controldue to additional investments, etc., the sum of the book value of the original equity investmentplus the newly increased investment cost is used as the initial investment cost calculated by thecost method.
(2) Long-term equity investments obtained by other means
For a long-term equity investment obtained by paying cash, the actually paid purchase price istaken as the initial investment cost.For a long-term equity investment obtained by issuing equity securities, the fair value of the issuedequity securities is taken as the initial investment cost.On the premise that the non-monetary asset exchange has commercial substance and that the fairvalue of the assets swapped in or out can be reliably measured, the initial investment cost of thelong-term equity investment swapped in by non-monetary assets exchange is determined by thefair value of assets swapped out and the relevant payable taxes and fees, unless there is conclusive
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page13
evidence that the fair value of the assets swapped in is more reliable; for non-monetary assetsexchange that do not meet the above preconditions, the book value of the assets swapped out andthe relevant taxes and fees payable are used as the initial investment cost of the long-term equityinvestment swapped in.For a long-term equity investment obtained through debt restructuring, its entry value isdetermined based on the fair value of the abandoned creditor's rights and other costs such as taxesdirectly attributable to the asset, and the difference between the fair value of the abandonedcreditor's rights and the book value is included in the current profit and loss.
3. Follow-up measurement and profits/losses recognition
(1) Long-term equity investment measured at cost
The long-term equity investment in subsidiaries shall be measured at cost. In addition to theactual prices or the announced but yet undistributed cash dividend or profit in considerationvaluation, the current investment return is recognized by the announced cash dividend or profit bythe invested units.
(2) Long-term equity investment measured at equity
The long-term equity investment in associated enterprise and joint ventures shall be measured atcost. If the initial investment cost is greater than the share of fair value of the invested entity’sidentifiable net assets, the initial investment cost of the long-term equity investment will not beadjusted; if the initial investment cost is less than the share of fair value of the invested entity’sidentifiable net assets, the difference shall reckoned in current profits/losses.The investment gain and other comprehensive income shall be recognized based on theCompany’s share of the net profits or losses and other comprehensive income made by theinvestee, respectively. Meanwhile, the book value of long-term equity investment shall beadjusted. The book value of long-term equity investment shall be reduced based on the Group’sshare of profit or cash dividend distributed by the investee. The share of net profit or lossattributable to the investees shall be recognized based on the fair value of the investees’identifiable net assets at the time of acquisition and after adjusting the net profit of the investeesaccording to the Company's accounting policies and accounting period.The Company shall recognize its share of the investee’s net profits or losses based on the fairvalues of the investee’s individual separately identifiable assets at the time of acquisition, aftermaking appropriate adjustments thereto during the accounting period and according to theaccounting policy of the Company. During the period of holding the investment, the investeeprepares the consolidated financial statements based on the net profit, other comprehensiveincome, and the amount attributable to the investee in changes in other owners' equity inthe consolidated financial statements for business accounting.When the Company confirms that it should share the losses incurred by the investee, it shallproceed in the following order. Firstly, write off the book value of the long-term equityinvestment. Secondly, if the book value of the long-term equity investment is not sufficient tooffset, the investment loss shall continue to be recognized within the limit of the book value oflong-term equity that substantially constitutes a net investment in the investee, and offset the bookvalue of long-term receivables. Finally, after the above-mentioned treatment, if the enterprise stillbears additional obligations as stipulated in the investment contract or agreement, the accrualliabilities are recognized according to the estimated obligations and included in the currentinvestment loss.
(3) Disposal of long-term equity investments
In case of disposal of long-term equity investments, the difference between the book value and theactual price is included in the current profit and loss.When disposing of a long-term equity investment accounted for by using the equity method, usethe same basis as the investee directly disposes of related assets or liabilities, and make accountingtreatment to the portion that was originally included in other comprehensive income according tothe corresponding proportion. The owner's equity recognized as a result of changes in other
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page14
owner's equity of the investee other than net profit or loss, other comprehensive income, and profitdistribution is carried forward to the current profit and loss on a pro rata basis, except for othercomprehensive 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 theequity investment, etc., the remaining equity after disposal shall be calculated in accordance withthe financial instrument recognition and measurement standards, and the difference between thefair value and the book value on the day of losing the joint control or significant influence isincluded in the current profit and loss. Other comprehensive income of the original equityinvestment recognized due to using the equity method for accounting shall adopt the accountingtreatment 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 aresult of changes in the owner's equity other than net profit or loss, other comprehensive incomeand profit distribution of the investee is transferred to current profit and loss when terminating theadoption of equity method for accounting.The control over the investee is lost due to the disposal of part of the equity investment and thecapital increase in the subsidiary by other investors resulting in a decline in the shareholding ratioof the Company, in preparing separate financial statements, the remaining equity interest whichcan apply common control or impose significant influence over the investee shall be accountedfor using equity method. Such remaining equity interest shall be treated as accounting for usingequity method since it is obtained and adjustment was made accordingly. For remaining equityinterest which cannot apply common control or impose significant influence over the investees, itshall be accounted for using the recognition and measurement standard of financial instruments.The difference between its fair value and book value as at the date of losing control shall beincluded in profit or loss for the current period.The disposed equity is obtained through business combination due to additional investment andother reasons, when preparing individual financial statements, if the remaining equity afterdisposal uses cost method or equity method for accounting, the equity investments held before theacquisition date shall be carried forward in proportion to other comprehensive income and otherowner's equity recognized through equity method accounting; for the remaining equity interestafter disposal accounted for using the recognition and measurement standard of financialinstruments, other comprehensive income and other owners’ equity shall be fully transferred.(XIV) Investment propertiesInvestment real estate is defined as the real estate with the purpose to earn rent or capitalappreciation or both, including the rented land use rights and the land use rights which are heldand prepared for transfer after appreciation, the rented buildings. (Including buildings for leaseafter self-construction or development activities completed and buildings under construction ordevelopment for lease in the future).Investment real estate of the Company are measured at cost model. The Investment real estate-rental buildings measured at cost model has the same depreciation policy as fixed assets, the landuse right for lease is exercise the amortization policy as intangible assets.(XV)Fixed assets
1.Recognition conditions for the fixed assets
Fixed assets are defined as the tangible assets which are held for the purpose of producing goods,providing services, lease or for operation & management, and have more than one fiscal year ofservice life. Fixed assets are recognized 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
The depreciation of fixed assets is calculated and accrued by the straight-line
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page15
depreciation method, and the depreciation rate is determined according to the fixed asset category,estimated useful life and estimated net residual value rate. If the service life of each component ofthe fixed asset is different or the economic benefits are provided to the enterprise in differentways, different depreciation rates or depreciation methods shall be selected and depreciation shallbe calculated separately.Depreciation method, depreciation period, residuals rate and annual depreciation rate for all kindsof fixed assets are as follows:
| Category | Depreciation method | Depreciation period (year) | Residuals rate (%) | Annual depreciation rate (%) |
| Houses and buildings | Straight-line method | 20 years | 10 | 4.5 |
| Machinery and equipment - gas turbine generator unit (note) | Workload method | 10 | ||
| Machinery and equipment (except gas turbine generator unit) | Straight-line method | 15-20 years | 10 | 4.5-6 |
| Means of transport | Straight-line method | 5 years | 10 | 18 |
| Others | Straight-line method | 5 years | 10 | 18 |
Note: the gas turbine generator unit is provided with depreciation under workload method, namelyto determine the depreciation amount per hour of gas turbine generator unit based on equipmentvalue, predicted net remaining value and predicted generation hours. Details are set out asfollows:
| Name | Fixed assets | Depreciation amount (RMB/hour) |
| The Company | Generator unit #1 | 538.33 |
| Generator unit #3 | 601.21 | |
| New Power | Generator unit #10 | 520.61 |
| Zhongshan Electric Power | Generator unit #1 | 960.34 |
| Generator unit #3 | 837.29 |
(XVI)Construction in processConstruction in progress take the necessary expenditures incurred before the construction of theasset reaching the expected usable state as the entry value of the fixed assets. If the constructedfixed assets have reached the expected usable state of the project, but the final accounts forcompletion have not yet been processed, from the date of reaching the expected usable state, theconstructed fixed assets will be transferred to the fixed assets at the estimated value based on theproject budget, cost, or actual project cost, and accrue the depreciation of fixed assets according tothe Company's fixed asset depreciation policy, and adjust the original temporary estimated value
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page16
according to the actual cost after completing the final accounts, but not adjust the original accrueddepreciation amount.(XVII)Borrowing costs
1. Recognition principle of capitalization of borrowing costs
Borrowing costs include interest, amortization of discounts or premiums related to borrowings,ancillary costs incurred in connection with the arrangement of borrowings, and exchangedifferences arising from foreign currency borrowings.If the borrowing costs incurred by the Company can be directly attributed to the acquisition,construction or production of assets eligible for capitalization, they shall be capitalized andincluded in the cost of relevant assets; other borrowing costs shall be recognized as expensesbased on the amount incurred when incurred and included in current profit and loss.Assets qualified for capitalization, refers to the fixed assets, investment real estate, inventory andother assets that require a considerable period of time for purchase, construction or productionactivities to reach the intended use or sale status.The capitalization of borrowing costs starts when the following conditions are met at the sametime:
(1) Asset expenditures have occurred, including expenditures in the form of paying cash,transferring non-cash assets, or assuming interest-bearing debts for the acquisition, construction orproduction of assets that meet the conditions for capitalization;
(2) The borrowing costs have occurred;
(3) The acquisition, construction or production activities necessary for the assets to reach theintended usable or saleable state have begun.
2.Period of capitalization of borrowing costs
The period of capitalization refers to the period from the point when the capitalization of theborrowing expenses starts to the point when the capitalization is stopped. The period during whichthe capitalization of the borrowing expenses is suspended is not included.When the acquisition, construction or production of assets that meet the capitalization conditionsreaches the intended 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 thecapitalization conditions are completed separately and can be used independently, thecapitalization of the borrowing expenses of the part of the assets shall be stopped.If each part of the assets purchased, constructed or produced is completed separately, but cannotbe used or sold until the entirety is completed, the capitalization of borrowing expenses shall bestopped when the entire asset is completed.
3. Period of suspension of capitalization
If an abnormal interruption occurs during the acquisition, construction or production of an assetthat meets the capitalization conditions, and the interruption lasts for more than 3 months, thecapitalization of borrowing expenses shall be suspended; if the interruption is the necessaryprocedure for the acquisition, construction or production of assets that meet the capitalizationconditions to reach the intended usable state or saleable state, the borrowing expenses shallcontinue to be capitalized. The borrowing expenses incurred during the interruption period shallbe 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.
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 thecapitalization conditions, the amount after subtracting the interest income obtained by depositingthe unused borrowing funds in the bank or the investment income obtained from temporaryinvestment from the actual borrowing expenses incurred in the current period of the special loans
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page17
is used to determine the capitalized amount of borrowing expenses.For general borrowings used for the acquisition, construction or production of assets that meet thecapitalization conditions, the amount of borrowing expenses that should be capitalized for generalborrowings is calculated and determined based on the weighted average of the asset expendituresof the accumulated asset expenditure exceeding the part of the special borrowings multiplied bythe capitalization rate of the general borrowings used. The capitalization rate is calculated anddetermined based on the weighted average interest rate of general borrowings.(XVIII)Intangible assets1 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 otherexpenditures incurred to make the assets reach the intended purpose. If the purchase price ofintangible assets have a delay in payment beyond normal credit conditions and is of financingnature, the cost of intangible assets is determined on the basis of the current value of the purchaseprice.For intangible assets used by the debtor to repay the debt through debt restructuring, the entryvalue is determined by the fair value of the waived creditor’s rights and other costs that can bedirectly attributable to the tax incurred to make the asset reach its intended use, and the differencebetween the fair value and the book value of the waived creditor's rights is included in the currentprofit and loss.On the premise that the non-monetary asset exchange has commercial substance and the fair valueof the swap-in assets and the swap-out assets can be reliably measured, the entry value of theswap-in intangible assets through non-monetary assets exchange is determined on the basis of thefair value of the swap-out assets, unless there is conclusive evidence that the fair value of theswap-in assets is more reliable; for non-monetary asset exchanges that do not meet the abovepremises, the book value of the swap-out assets and the relevant taxes and fees payable shall beused as the cost of the swap-in intangible assets, but not recognize the profit and loss.
(2) Subsequent measurement
The service life of intangible assets are analyzed and judged on acquisition.Intangible assets with a limited service life are amortized on a straight-line basis within the periodof economic benefits brought to the enterprise; or the intangible assets shall be regarded as withan uncertain service life if the period of economic benefits brought by intangible assets cannot beforeseen, and shall not be amortized.
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 usefullife using the straight-line method for the original value minus the estimated net residual value andthe accumulated amount of provision for impairment from the time it is available foruse. Intangible assets with uncertain service life shall not be amortized.At the end of the period, review the useful life and amortization method of intangible assets with alimited useful life. If there is any change, it will be treated as a change in accounting estimates.
3.Judgment basis for intangible assets with uncertain service life and procedures forreviewing their service lifeTo review the service life of an intangible asset with a uncertain service life, if there is evidencethat the period of economic benefits brought by the intangible asset is predictable, estimate itsservice life and amortize according to the amortization policy for intangible assets with limitedservice life.
4.Specific criteria for dividing the research phase and the development phaseThe company's internal research and development project expenditures are divided into researchphase expenditures and development phase expenditures.
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page18
Research phase: it’s the phase of planned investigations and research activities with originality toacquire and understand new scientific or technical knowledge, etc.Development phase: it’s the phase to apply the research results or other knowledge to a certainplan or design so as to produce new or substantially improved materials, devices, products andother activities before commercial production or use.Specific criteria for expenditure in the development phase to conform to capitalizationExpenditures in the development stage of internal research and development projects arerecognized as intangible assets 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 theproducts produced by the intangible assets are marketable or the intangible assets themselves aremarketable, and the intangible assets will be used internally, which can prove their usefulness;
4. There are sufficient technical, financial and other resource supports to complete thedevelopment of the intangible 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 reliablymeasured.(XIX)Impairment of long-term assetsLong-term equity investments, investment real estate measured by the cost model, fixed assets,construction in progress, intangible assets with limited service life and other long-term assets thatshow signs of impairment on the balance sheet date shall be tested for impairment. If theimpairment test result shows that the recoverable amount of an asset is less than its book value, theimpairment provision will be made according to the difference and recognized as an impairmentloss. The recoverable amount of an asset is the higher of its fair value less costs of disposal andthe present value of the future cash flows expected to be derived from the asset. Provisions forassets 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 recoverableamount of the asset group to which the asset belongs. The asset group is the smallest group ofassets capable of generating cash flows independently.As for the goodwill, intangible assets with an indefinite useful life and intangible assets beyondworking conditions, 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 thebusiness combination shall be allocated to the relevant asset group according to a reasonablemethod from the date of purchase; if it is difficult to allocate to the relevant asset group, it shall beallocated to the relevant portfolio of asset groups. The Company allocates the book value ofgoodwill based on the relative benefits that the relevant asset group or portfolio of asset groupscan obtain from the synergies of the business combination, and conducts a goodwill impairmenttest on this basis.When conducting an impairment test on a related asset group or portfolio of asset groups thatcontains goodwill, if there are signs of impairment for an asset group or portfolio of asset groupsrelated to goodwill, the asset group or portfolio of asset groups that does not contain goodwillshould be tested first, calculate the recoverable amount, and compare it with the relevant bookvalue to confirm the corresponding impairment loss. Then conduct an impairment test on the assetgroup or portfolio of asset groups that contains goodwill, and compare the book value of theserelated asset groups or asset group portfolios (including the book value of the allocated goodwill)with the recoverable amount, if the recoverable amount of the relevant asset group or the assetgroup portfolio is lower than its book value, the impairment loss of goodwill shall be recognized.Once the above assets impairment loss is recognized, it will not be carried back in futureaccounting periods.(XX)Long-term deferred expenses
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page19
The Company's long-term deferred expenses refer to the expenses that have been paid, but thebenefit period is more than one year (excluding one year). Long-term deferred expenses areamortized in installments according to the benefit period of the expense items. If the long-termdeferred expense item cannot benefit the future accounting period, all the amortized value of theitem that has not been amortized shall be transferred to the current profit and loss.(XXI)Contract liabilitiesContractual liabilities refer to the Company's obligation to transfer goods or services to customersfor consideration received or receivable from customers. Contractual assets andcontractual liabilities under the same contract are presented in net amount.(XXII)Employee compensation
1.Accounting treatment method of short-term compensation
During the accounting period when employees provide services to the Company, the Companyrecognizes the actual short-term compensation as a liability and includes it in the current profit andloss or the cost of related assets.The social insurance premiums and housing provident fund paid by the Company for employees,as well as the labor union funds and employee education funds drawn in accordance with theregulations, of which the corresponding employee compensation amount shall be calculated anddetermined according to the specified accrual basis and accrual ratio during the accounting periodwhen the employees provide services to the Company.If employee welfare expenses are non-monetary and can be measured reliably, they shall bemeasured at fair value.
2. Accounting treatment method of post-employment benefits
(1) Defined contribution plans
The Company pays basic endowment insurance and unemployment insurance for employees inaccordance with the relevant regulations of the local government. During the accounting periodwhen employees provide services to the Company, the amount payable is calculated based on thelocal payment base and proportion, recognized as a liability, and included in current profit and lossor related asset cost.In addition to basic endowment insurance, the Company has also established an enterprise annuitypayment system (supplementary endowment insurance)/enterprise annuity plan in accordance withthe relevant policies of the national enterprise annuity system. The Company pays a certainpercentage of the total wages of employees to the local social insurance agency/annuity plan, andthe corresponding expenditure is included in the current profit and loss or the cost of relatedassets.
(2) Defined benefit plans
The Company assigns the welfare obligations arising from the defined benefit plans to the periodduring which the employees provide services according to the formula determined by the expectedcumulative welfare unit method, and includes them in the current profit and loss or the cost ofrelated assets.The deficit or surplus formed by the present value of the defined benefit plan’s obligations minusthe fair value of the defined benefit plan’s assets is recognized as a defined benefit plan’s netliabilities or net assets. If there is a surplus in the defined benefit plan, the Company shall use thelower of the surplus of the defined benefit plan and the asset ceiling to measure the net assets ofthe defined benefit plan.All defined benefit plans obligations, including obligations expected to be paid within twelvemonths after the end of the annual reporting period in which employees provide services, arediscounted based on the market yield of the national debt matching with the obligation period andcurrency of the defined benefit plan or the high-quality corporate bonds in an active market on thebalance sheet date.
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page20
The service cost incurred by the defined benefit plan and the net interest of the net liabilities or netassets of the defined benefit plan are included in the current profit and loss or the related assetcost; the changes in net liabilities or net assets resulting from the remeasurement of definedbenefit plans are included in other comprehensive income, and shall not be carried back to profitor loss in the subsequent accounting period, and the part that was originally included in othercomprehensive income will be carried forward to undistributed profit within the scope of equitywhen the original defined benefit plan is terminated.In the settlement of the defined benefit plan, the difference between the present value of theobligation of the defined benefit plan and the settlement price determined on the settlement date isused to confirm the settlement gain or loss.
3. Accounting treatment method of dismission welfare
When the Company cannot unilaterally withdraw the dismission welfare provided by thetermination of the labor relationship plan or redundancy proposal, or when confirming the costs orexpenses related to the reorganization involving the payment of the dismission welfare (the earlierof the two), recognize employee compensation liabilities arising from dismission welfare andinclude in the current profit and loss.(XXIII) Estimated liabilities
1. Recognition criteria of estimated liabilities
The obligations with contingencies concerned as litigation, debt guarantee and contract in loss arerecognized as accrual liability when the following conditions are met simultaneously:
(1) The obligation is a current obligation undertaken by the Company;
(2) The performance of such obligation is likely to result in outflow of economic benefits from theCompany;
(3) The amount of the obligation can be measured reliably.
2. Methods of measurement of various estimated liabilities
The Company's accrual liabilities are initially measured based on the best estimate of theexpenditure required to perform the relevant current obligations.When determining the best estimate, the Company comprehensively considers factors such asrisks, uncertainties and time value of money related to contingencies. If the time value of moneyhas a significant impact, the best estimate is determined after discounting the relevant future cashoutflows.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 ofoccurrence of various results within this range is the same, the best estimate is determinedaccording to the middle value of the range, that is, the average number of the upper and lowerlimits.There is no continuous range (or interval) for the required expenditure, or although there is acontinuous range, the possibility of occurrence of various results within the range is not the same,if the contingency involves a single item, the best estimate shall be determined based on theamount most likely to occur; if the contingency involves multiple items, the best estimate shall becalculated and determined according to various possible outcomes and related probabilities.If all or part of the expenditures required by the Company to settle the accrual liabilities areexpected to be compensated by a third party, the compensation amount shall be separatelyrecognized as an asset when it is basically certain that it can be received, and the confirmedcompensation amount shall not exceed the book value of the accrual liability.(XXIV) IncomeGeneral principlesThe Company recognizes the income when it has fulfilled its performance obligations in the
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page21
contract, that is, when the customer has obtained control of the relevant goods or services. Theperformance obligation refers to the commitment in the contract that the Group transfers clearlydistinguishable goods or services to the customer. Obtaining control over related goods orservices means being able to lead the use of the goods or the provision of the service and obtainalmost all of the economic benefits.For a performance obligation that meets one of the following conditions and is performed within acertain period of time, the Company recognizes income within a period of time according to theperformance of the contract: (1) The customer obtains and consumes the economic benefitsbrought by the Company's performance at the same time as the Company fulfills the contract; (2)The customer can control the products under construction during the performance of theCompany; (3) The products produced during the performance of the Company have irreplaceableuses, 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 Companyrecognizes income at the point when the customer obtains control of the relevant goods orservices.Variable considerationSome of the Company’s contracts with customers include sales rebates, quantity discounts,commercial discounts, performance bonuses and claims, which forms variable consideration. TheCompany determines the best estimate of the variable consideration based on the expected valueor the most likely amount, but the transaction price that includes the variable consideration doesnot exceed the amount that the accumulated recognized income is most unlikely to be materiallyreturned when the relevant uncertainty is eliminated.Significant financing componentIf there is a significant financing component in the contract, the Company shall determine thetransaction price based on the amount payable in cash when the customer assumes control of thegoods or services. The difference between the transaction price and the contract considerationshall be amortized by the effective interest method during the contract period.On the starting date of the contract, if the Company expects the customer to obtain control of theproduct and the customer pays the payment within one year, the significant financing componentin the contract will not be considered.Non-cash considerationIf the customer pays a non-cash consideration, the Company shall determine the transaction pricebased on the fair value of the non-cash consideration. If the fair value of the non-cashconsideration cannot be reasonably estimated, the Company indirectly determines the transactionprice by referring to the stand-alone selling price of the goods promised to be transferred to thecustomer. If the fair value of non-cash consideration changes due to reasons other than the formof consideration, it shall be used as variable consideration for accounting treatment in accordancewith relevant regulations.Consideration payable to customersFor the consideration payable to customers, the Company offsets the transaction price from theconsideration payable to the customer, and offsets the current income at the time point of the laterwhen the relevant income is recognized and the promised payment of the customer consideration,unless the consideration payable is to obtain other clearly distinguished products from thecustomer.Sales with sales return clausesFor sales with a sales return clause, when the customer obtains control of the relevant product, ourcompany recognizes the income in accordance with the amount of consideration expected to beentitled to be collected due to transfer of goods to customers (that is, does not include the amountexpected to be refunded due to sales returns), and recognizes liabilities in accordance with theamount expected to be refunded due to sales returns. At the same time, according to the expectedbook value of the returned goods at the time of transfer, the balance after deducting the estimated
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page22
cost of recovering the goods (including the value impairment of the returned goods) is recognizedas an asset, and the net carry-over cost of the above asset cost is deducted according to the bookvalue of the transferred commodity at the time of transfer. On each balance sheet date, re-estimatethe future sales return situation, and if there is any change, it will be treated as a change inaccounting estimates.Sales with quality assurance clausesFor sales with quality assurance clauses, if the quality assurance provides a separate service inaddition to ensuring that the goods or services sold to the customer meet the established standards,the quality assurance constitutes a single performance obligation. Otherwise, the Company willmake an accounting treatment for quality assurance responsibilities in accordance with theAccounting Standards for Business Enterprises No. 13 - Contingencies.Principal and agentThe Company judges whether the Company’s identity is the principal responsible person or anagent at the time of the transaction based on whether it has control over the product or servicebefore the transfer of the product or service to the customer. If the Company is able to controlthe products or services before transferring the products or services to the customers, theCompany is the principal responsible person, and the income is recognized based on the totalconsideration received or receivable; otherwise, the Company is the agent, and the income isrecognized according to the amount of commission or handling fee expected to have the right tocollect, the amount is determined according to the net amount of the total consideration receivedor receivable after deducting the price payable to other related parties, or according to theestablished commission amount or ratio.Sales with additional purchase options for customersFor sales with additional purchase options for customers, the Company assesses whether theoption provides customers with a major right. If an enterprise provides a major right, it shall be asingle performance obligation, and the transaction price shall be allocated to the performanceobligation in accordance with the relevant provisions of the standards. When the customerexercises the purchase option in the future to obtain control of the relevant commodity, or whenthe option lapses, the corresponding income shall be recognized. If the stand-alone selling price ofthe customer's additional purchase option cannot be directly observed, the Company shallreasonably estimate after considering all relevant information such as the difference between thediscounts that the customer can obtain from exercising and not exercising the option, thepossibility of the customer exercising the option, etc.. Although the customer has additionallypurchased the commodity option, the price at the time when the customer exercises the option topurchase the commodity reflects the stand-alone selling price of these commodities, and it shouldnot 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 theintellectual property license constitutes a single performance obligation in accordance with therelevant provisions of the standards, and if it constitutes a single performance obligation, it shallfurther determine whether it will be performed within a certain period of time or at a certain pointin time.When the following conditions are met at the same time, the relevant income is recognized as aperformance obligation performed within a certain period of time; otherwise, therelevant income is recognized as a performance obligation performed at a certain point in time:
(I) Contract requirements or customers can reasonably expect that the enterprise will engage inactivities that have a significant impact on the intellectual property rights;(II) The activity will have a favorable or unfavorable impact on customers;(III) The activity will not result in the transfer of a certain commodity to the customer.After-sale repurchase transaction
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page23
For after-sales repurchase transactions, the Company distinguishes the following two situations foraccounting treatment:
(I) If there is a repurchase obligation due to the existence of a long-term arrangement with thecustomer or the Company enjoys the repurchase right, the Company shall conduct thecorresponding accounting treatment as a lease transaction or financing transaction. Among them,if the repurchase price is lower than the original selling price, it shall be regarded as a leasetransaction, and shall be accounted for in accordance with the relevant provisions of thestandards; 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 theclient's payment, and the difference between the payment and the repurchase price is recognized asinterest expenses during the repurchase period. If the Company fails to exercise the repurchaseright upon maturity, when the repurchase right expires, the financial liabilities is derecognized,and the income is recognized at the same time.(II) If the Company is obliged to repurchase commodities at the request of the customer, it shallassess whether the customer has a major economic motivation to exercise the right of claim on thecommencement date of contract. If the customer has a major economic motivation to exercise theright of claim, the enterprise shall treat the after-sale repurchase as a lease transaction or financingtransaction, and conduct accounting treatment in accordance with the provisions of present article
(1); otherwise, the Company will treat it as a sales transaction with a sales return clause, andperform accounting treatments in accordance with relevant regulations of the standards.Customer's unexercised rightsIf the Company receives advance payments from customers for sales of goods, it shall firstrecognize the payments as liabilities, and then convert them into income when the relevantperformance obligations are fulfilled. When the advance payment does not need to be refundedand the customer may waive all or part of its contract rights, the Company expects to be entitled toobtain the amount related to the contract rights waived by the customer, and the above-mentionedamount shall be recognized as income in proportion to the mode in which the customer exercisesthe contractual rights. Otherwise, the Company can only convert the relevant balance of the aboveliabilities into income when the possibility of the customer requesting it to perform the remainingperformance obligations is extremely low.Initial costs not to be returnedThe initial cost collected by the Company from the customer on the commencement date of thecontract (or close to the commencement date) shall be included in the transaction price, and it shallbe assessed whether the initial cost is related to the transfer of the promised goods to thecustomer. If the initial cost is related to the transfer of the promised goods to the customer, andthe goods constitutes a single performance obligation, the Company recognizes the income at thetransaction price allocated to the goods when transferring the goods. If the initial cost is related tothe goods promised to transfer to the customer, but the goods does not constitute a singleperformance obligation, the Company will recognize the income at the transaction price allocatedto the single performance obligation when the single performance obligation containing theproduct is fulfilled. If the initial cost is not related to the goods promised to transfer to thecustomer, it shall be used as an advance payment for the goods to be transferred in the future, andshall be recognized as income when the goods is transferred in the future.If the Company has collected an initial cost that does not need to be refunded and should carry outinitial activities to perform the contract, but these activities do not transfer the promised goods tothe customer, the initial cost is related to the goods promised to be transferred in the future, andshould be recognized as income when transferring the goods in the future, and the Company doesnot consider these initial activities when determining the progress of the contract. The Company’sexpenditures for the initial activities should be recognized as an asset or included in the currentprofit and loss in accordance with the relevant provisions of the standards.Specific principlesThe Company recognizes the income when it has fulfilled its performance obligations in thecontract, that is, when the customer has obtained control of the relevant goods or
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page24
services. Obtaining control over related goods or services means being able to lead the use of thegoods or the provision of the service and obtain almost all of the economic benefits.
(1) Income from commodity sales
The sales contract between the Company and the customers usually only contains the performanceobligation for the transferred goods. The Company usually recognizes income at a certain point intime on the basis of comprehensive consideration of the following factors: obtaining the currentright to receive payment of the goods, the transfer of major risks and rewards in the ownership ofthe goods, the transfer of the legal ownership of the goods, and the transfer of the physical asset ofthe goods, the customer accepts the goods.Income from sales of electricityThe Company produces electricity through firepower and realizes sales through integration intoGuangdong Power Grid. For electricity sales, the Company recognizes the realizationof income when it has produced electricity and obtains the grid electricity statistical tableconfirmed by the Electric Power Bureau.
(2) Income from rendering of labor services
The service contracts between the Company and the customers usually include performanceobligations such as operation and maintenance services, labor services, etc.The Company evaluates the contract on the start date of the contract, identifies each individualperformance obligation contained in the contract, and determines whether each individualperformance obligation is performed within a certain period of time or at a certain point in time. Ifone of the following conditions is met, it is a performance obligation performed within a certainperiod of time, the Company recognizes income within a period of time according to the progressof the contract:
(1) The customer obtains and consumes the economic benefits brought by the Company'sperformance at the same time as the Company's performance;
(2) The customer can control the products under construction during the performance of theCompany;
(3) The products produced during the performance of the Company have irreplaceable uses, andthe Company has the right to collect payment for the accumulated performance part that has beencompleted so far during the entire contract period. Otherwise, the Company recognizes income atthe point when the customer obtains control of the relevant goods or services.
①Recognition standards of income from labor services provided by Environment ProtectionCompany:
The company recognizes income based on the obtained sludge treatment settlement statementjointly confirmed with the transportation company, the water purification unit, and the Company.
②Specific standards for income recognition of Engineering Company:
Commissioning projects: when the commissioning is successful, obtain the confirmation ofsuccessful commissioning, and recognize the income according to the contract; Operation andmaintenance, management projects: monthly income is temporarily estimated and recognizedbased on attendance time and labor prices of attendants, and the temporary estimated income willbe adjusted after obtaining the monthly statement confirmed by the supplier's stamp and signature,the progress confirmation letter, and the attendance sheet.(XXV) Contractual costsCost of obtaining the contractIf the incremental cost (that is, the cost that would not be incurred without obtaining the contract)incurred by the Company to obtain the contract is expected to be recovered, it shall be recognizedas an asset, and use the same basis for the recognition of the income of goods or services related tothe asset for sales, and be included in the current profit and loss. If the asset amortization perioddoes not exceed one year, it shall be included in the current profit and loss when it occurs. Other
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page25
expenses incurred by the Group in order to obtain the contract shall be included in the currentprofit and loss when incurred, except for those clearly borne by the customer.Cost of fulfilling the contractThe cost incurred by the Company for the performance of the contract that does not fall within thescope of other accounting standards for business enterprises except the income standard and meetsthe following conditions at the same time is recognized as an asset: (1) The cost is directly relatedto a current or expected contract; (2) The cost increases the resources of the Group for fulfillingthe performance obligations in the future; (3) The cost is expected to be recovered. The above-mentioned assets are amortized on the same basis as the recognition of the income of goods orservices 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 firstdetermines the impairment loss of other assets related to the contract that are confirmed inaccordance with other relevant enterprise accounting standards; then, based on the differencebetween the book value of which is higher than the remaining consideration that the Company isexpected to obtain due to the transfer of the asset-related commodities and the estimated cost oftransferring the related commodities, the excess shall be provided for impairment and recognizedas an asset impairment loss.If the impairment factors of the previous period have changed, causing the aforementioneddifference is higher than the book value of the asset, the original provision for asset impairmentshall be returned and included in the current profit and loss, but the book value of the asset afterthe return shall not exceed the book value of the asset on the date of return under the assumptionthat no impairment provision is made.(XXVI)Government subsidies
1. Type
Government subsidies refer to the monetary asset and non-monetary asset that the Companyobtains from the government free of charge, which are divided into the asset-related governmentsubsidy and the income-related government subsidy.Asset-related government subsidy refers to government subsidies obtained by the Company forpurchase and construction or to form long-term assets in other ways. Income-related governmentsubsidy refers to government subsidies other than asset-related government subsidy.
2. Time point of recognition
If there is evidence at the end of the period that the Company can meet the relevant conditionsstipulated in the financial support policy and is expected to receive financial support funds, thegovernment subsidy shall be recognized according to the amount receivable. In addition,government subsidies are confirmed when they are actually received.If a government subsidy is a monetary asset, it shall be measured at the amount received orreceivable. If a government subsidy is a non-monetary asset, it shall be measured at its fairvalue; if its fair value cannot be obtained reliably, it shall be measured at its nominal amount(1 Yuan). Government subsidies measured at their nominal amounts are directly included in thecurrent profits and losses.
3. Accounting treatment
Assets-related government subsidy are used to offset the book value of related assets or berecognized as deferred income, those recognized as deferred income shall be included in thecurrent profit and loss (those related to the Company’s daily activities shall be included in otherincome; those not related to the Company’s daily activities shall be included in the non-operatingincome) in a reasonable and systematic way within the useful life of the relevant assets;Income-related government subsidies are recognized as deferred income and included in currentprofit and loss (other income if they are related to routine activities or non-operating income ifthey are not related to routine activities) or used to offset them. those used to compensate the
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page26
Company’s related costs or losses are directly included in the current profits and losses (thoserelated 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 relatedcosts or losses.The policy-related preferential loan interest discount obtained by the Company is divided into thefollowing two situations and is accounted for separately:
(1) The finance allocates interest subsidy to the lending bank, if the lending bank provides loans tothe Company at a preferential policy interest rate, the Company uses the amount of borrowingactually received as the entry value of the loan, and calculates the related borrowing costsaccording to the loan principal and the policy preferential interest rates.
(2) If the finance directly allocates interest subsidy funds to the Company, the Company will offsetthe corresponding interest discount against the relevant borrowing costs.(XXVII)Deferred income tax assets and deferred income tax liabilitiesFor deductible temporary differences to recognize deferred income tax assets, they shall be withinthe limit of the taxable income that is likely to be obtained in the future to deduct deductibletemporary differences. For the deductible losses and tax deductions that can be carried forwardfor subsequent years, they shall be within the limit of the future taxable income that is likely to beused to deduct the deductible losses and tax deductions to recognize the corresponding deferredincome tax assets.For taxable temporary differences, except for special circumstances, deferred income tax liabilitiesare recognized.Special circumstances that do not recognize deferred income tax assets or deferred income taxliabilities include initial recognition of goodwill; other transactions or matters that do not affectaccounting profits or taxable income (or deductible losses) when they occur except for a businesscombination.When having the statutory right to settle on a net basis, and intending to settle on a net basis orobtain assets and pay off liabilities at the same time, the current income tax assets and currentincome tax liabilities are presented as the net amount after offsetting.When having the statutory right to settle current income tax assets and current income taxliabilities on a net basis, and the deferred income tax assets and deferred income tax liabilities arerelated to the income tax levied by the same tax administration department on the same taxpayeror related to different taxpayers, however, in the future period during which important deferredincome tax assets and liabilities are returned, when the taxpayer involved intends to settle thecurrent income tax assets and liabilities on a net basis or obtain assets and repay liabilities at thesame time, the deferred income tax assets and deferred income tax liabilities are presented as thenet amount after offsetting.(XXVIII) LeaseA lease is a contract in which the lessor cedes the right to use an asset to the lessee for a certainperiod of time in return for consideration.
1. The Company as lessee
The Company recognizes the right-of-use assets at the beginning of the lease period andrecognizes the lease liabilities at the present value of the outstanding lease payments. The leasepayments include fixed payments, as well as payments where there is reasonable certainty that apurchase option will be exercised or a lease option will be terminated. The variable rentdetermined based on a certain percentage of sales is not included in the lease payment, and isincluded in the current profit and loss when it actually occurs.The Company’s right-of-use assets include leased houses and buildings, machinery andequipment, means of transport, computers and electronic equipment, etc.For short-term leases with a lease term of less than 12 months and low-value asset leases with alow value when a single asset is brand-new, the Company chooses not to recognize the right-of-
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page27
use assets and lease liabilities, and includes the relevant rental expenses into current profits andlosses or the relevant assets cost in each period of the lease term according to the straight-linemethod.
2. The Company as lessor
A lease that transfers substantially all the risks and rewards associated with the ownership of theleased asset is a finance lease. Other leases are operating leases.
(1) Operating lease
When the Company operates leased buildings, machinery and equipment, and means of transport,the rental income from operating leases shall be recognized in accordance with the straight-linemethod during the lease term. The Company will include variable rent determined based on apercentage of sales in rental income when it actually incurs.
(2) Financing lease
On the beginning date of the lease term, the Company recognizes the finance lease receivables forfinance leases and derecognizes related assets. The Company presents the finance leasereceivables as long-term receivables, and the finance lease receivables received within one year(including one year) from the balance sheet date are presented as non-current assets due withinone year.(XXIX) Special reservesThe group includes the work safety costs in the profit and loss of related products or cost in thecurrent period in the account of "special reserves" at the same time. When the group uses thespecial reserves, if it belongs to the expenses, the special reserves shall be offset directly; wherefixed assets are formed, they shall be recognized as fixed assets when the relevant assets reach theworking condition for their intended use; At the same time, the special reserves are offsetaccording to the cost of formed fixed assets and the accumulated depreciation of the same amountis recognized. Depreciation of such fixed assets will not be made in later period.(XXX) Changes of major accounting policies and accounting estimates
1. Change of major accounting policies
No change of major accounting policies occurred in the reporting period.
2. Change of major accounting estimates
No change of major accounting estimates occurred in the reporting period.IV Taxes(I) Main tax category and tax rate
| Tax category | Tax basis | Tax rate |
| VAT | Output VAT is calculated based on sales of goods and taxable service income calculated according to the provisions of the tax law, and the difference is be the VAT payable after deducting the input VAT deductible in the current period | 13%, 9%, 6%, 5%, 3% |
| City maintenance tax | According to the actual payment of VAT and consumption tax | 7% |
| 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% |
| Corporate income tax | According to the taxable income amount | 25%, 15%, |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page28
| Tax category | Tax basis | Tax rate |
| 16.5%, 17% | ||
| Land-use tax of town | 2 ~ 8 Yuan per square meter of the actual occupied is for the industrial land located in Nanshan District, Shenzhen City; 1 Yuan per square meter of the actual occupied is for the industrial land located in Zhongshan City |
(II)Explanation of the income tax rate of the taxpayer of corporate income tax
| Name of taxpayer | Rate of income tax |
| The Company | 15% |
| New Power | 25% |
| Engineering Company | 15% |
| Shenzhen Server | 25% |
| Environment Protection Company | 15% |
| Zhongshan Electric Power | 25% |
| Singapore Company | 17% |
| Shen Storage | 25% |
| Syndisome (HK) | 16.5% |
(III) Preferential tax policies and basis
1. Preferential policies for corporate income tax:
(1) According to the Record List of the Second Batch of High-tech Enterprises recognized byShenzhen in 2021, Shenzhen Nanshan Power Co., Ltd. has obtained the National High-techEnterprise Certification no. GR202144204080, which is valid for 3 years. From 2021 to 2023, theCompany enjoys the preferential corporate income tax of high-tech enterprises, the corporateincome tax is paid at the rate of 15.00%.
(2) According to the Document GKHZ (2020) No. 46, Shenzhen Shennandian TurbineEngineering Technology Co., Ltd. has obtained the National High-tech Enterprise Certification no.GR202044200352, which is valid for 3 years. From 2020 to 2022, the Company enjoys thepreferential corporate income tax of high-tech enterprises, the corporate income tax is paid at therate of 15.00%.
(3) According to the Document GKHZ (2020) No. 46, Shenzhen Shen Nan Dian EnvironmentProtection Co., Ltd has obtained the National High-tech Enterprise Certification no.GR202044200405, which is valid for 3 years. From 2020 to 2022, the Company enjoys thepreferential corporate income tax of high-tech enterprises, the corporate income tax is paid at therate of 15.00%.
2. Preferential policies for VAT:
| Tax category | Name | Relevant regulations and policy basis | Approval authority | Approval No. | Exemption range | Period of validity |
| VAT | Environment | Notice on Contents of Products with | Shenzhen Provincial | SQSST [2018] No.: | Resource comprehen | Aug. 01, 2020 to |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page29
| Tax category | Name | Relevant regulations and policy basis | Approval authority | Approval No. | Exemption range | Period of validity |
| Protection Company | Comprehensive Utilization of Resources and Value-Added Tax Privilege of Labor Service (CS No. [2015] 78) | Office, SAT (Qianhai SAT) | 18302 | sive utilization of VAT refund | Jul. 31, 2023 | |
| VAT | Engineering Company | Administrative Measures on VAT Exemption for Cross-border Taxable Acts with VAT Replaced by Business Tax | Shenzhen Provincial Office, SAT (Qianhai SAT) | Announcement of the State Taxation Administration [2016] No. 29 | VAT exemption for cross-border taxable activities |
V. Notes of the items in consolidated financial statements(I) Cash and cash equivalents
| Item | Ending balance | Balance at the end of last year |
| Cash on hand | 37,698.63 | 35,963.95 |
| Bank savings | 647,983,965.23 | 456,715,650.80 |
| Other cash and cash equivalents | 27,474,602.54 | 232,853,018.84 |
| Total | 675,496,266.40 | 689,604,633.59 |
| Including: total amount saving aboard | 6,016,949.57 | 51,205,621.70 |
The cash and cash equivalents that are restricted to use due to mortgage, pledge or freezing, andare placed overseas and the repatriation of funds are restricted are as follows:
| Item | Ending balance | Balance at the end of last year |
| Margin of bank acceptance bills | 27,474,594.34 | |
| Total | 27,474,594.34 |
(II) Financial assets held for trading
| Item | Ending balance | Balance at the end of last year |
| Financial assets measured by fair value and with variation reckoned into current profits/losses | 440,013,571.10 | 560,000,726.39 |
| Including: debt instrument investment | ||
| equity instrument investment | ||
| Derivative financial assets |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page30
| Item | Ending balance | Balance at the end of last year |
| Others | 440,013,571.10 | 560,000,726.39 |
| Designated as financial assets measured by fair value and with variation reckoned into current profits/losses | 72,873,680.00 | |
| Including: debt instrument investment | ||
| equity instrument investment | 72,873,680.00 | |
| Total | 440,013,571.10 | 632,874,406.39 |
(III) Accounts receivable
1. Accounts receivable disclosed by aging
| Aging | Ending balance | Balance at the end of last year |
| Within 1 year (inclusive) | 103,306,168.76 | 73,610,161.02 |
| 1 to 2 (inclusive) years | 34,239,288.30 | |
| 2 to 3 (inclusive) years | ||
| Over 3 years | 5,558,673.67 | 5,558,673.67 |
| Subtotal | 143,104,130.73 | 79,168,834.69 |
| Less: provision for bad debts | 7,270,638.09 | 5,558,673.67 |
| Total | 135,833,492.64 | 73,610,161.02 |
2. Accounts receivable disclosed by provision method for bad debts by category
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Accrual proportion (%) | ||
| Accounts receivable with single provision for bad debts | 5,558,673.67 | 3.88 | 5,558,673.67 | 100.00 | |
| Provision for bad debts by combination of risk characteristics | 137,545,457.06 | 96.12 | 1,711,964.42 | 1.24 | 135,833,492.64 |
| Including: low-risk portfolio | 137,545,457.06 | 96.12 | 1,711,964.42 | 1.24 | 135,833,492.64 |
| Total | 143,104,130.73 | 100.00 | 7,270,638.09 | 5.08 | 135,833,492.64 |
| Category | Balance at the end of last year |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page31
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Accrual proportion (%) | ||
| Accounts receivable with single provision for bad debts | 5,558,673.67 | 7.02 | 5,558,673.67 | 100.00 | |
| Provision for bad debts by combination of risk characteristics | 73,610,161.02 | 92.98 | 73,610,161.02 | ||
| Including: low-risk portfolio | 73,610,161.02 | 92.98 | 73,610,161.02 | ||
| Total | 79,168,834.69 | 100.00 | 5,558,673.67 | 7.02 | 73,610,161.02 |
Accounts receivable with single provision for bad debts
| Name | Ending balance | |||
| Book balance | Provision for bad debts | Accrual proportion (%) | Causes | |
| Shenzhen Petrochemical Products Bonded Trading Co., Ltd. | 3,474,613.06 | 3,474,613.06 | 100.00 | Uncollectible as excepted |
| China Solibase Engineering Co., Ltd. | 1,137,145.51 | 1,137,145.51 | 100.00 | Uncollectible as excepted |
| Shenzhen Fuhuade Power Co., Ltd | 800,000.00 | 800,000.00 | 100.00 | Uncollectible as excepted |
| Others | 146,915.10 | 146,915.10 | 100.00 | Uncollectible as excepted |
| Total | 5,558,673.67 | 5,558,673.67 | 100.00 | |
3. Provision for bad debts accrued, returned or recovered in the current period
| Category | Balance at the end of last year | Current amount changed | Ending balance | ||
| Reversed or recovered | Returned or recovered | Others | |||
| Accounts receivable with single provision for bad debts | 5,558,673.67 | 5,558,673.67 | |||
| Provision for bad debts by combination of risk characteristics | 1,711,964.42 | 1,711,964.42 | |||
| Total | 5,558,673.67 | 1,711,964.42 | 7,270,638.09 | ||
4. Top 5 receivables at ending balance by arrears party
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page32
| Name of organization | Book balance | Ratio in the balance of accounts receivable (%) | Balance of provision for bad debts at the end of the year |
| 1st place | 70,059,736.37 | 48.96 | 1,711,964.42 |
| 2nd place | 47,995,982.82 | 33.54 | |
| 3rd place | 12,955,221.87 | 9.05 | |
| fourth place | 6,420,000.00 | 4.49 | |
| 5th place | 3,474,613.06 | 2.42 | 3,474,613.06 |
| Total | 140,905,554.12 | 98.46 | 5,186,577.48 |
(IV)Advances to suppliers
1.Advances to suppliers classified according to age
| Aging | Ending balance | Balance at the end of last year | ||
| Book balance | Ratio (%) | Book balance | Ratio (%) | |
| Within 1 year (inclusive) | 44,506,222.90 | 97.93 | 63,880,339.98 | 99.17 |
| 1 to 2 (inclusive) years | 514,851.14 | 1.13 | 441,309.74 | 0.69 |
| 2 to 3 (inclusive) years | 389,626.88 | 0.86 | ||
| Over 3 years | 37,586.94 | 0.08 | 93,586.94 | 0.14 |
| Total | 45,448,287.86 | 100.00 | 64,415,236.66 | 100.00 |
2.Top five accounts paid in advance at period-end balance listed by object
| Name of organization | Book balance | Ratio in the balance of advances (%) |
| 1st place | 33,489,221.73 | 73.69 |
| 2nd place | 10,451,975.10 | 23.00 |
| 3rd place | 376,500.00 | 0.83 |
| 4th place | 180,000.00 | 0.40 |
| 5th place | 88,500.00 | 0.18 |
| Total | 44,586,196.83 | 98.10 |
(V)Other receivables
| Item | Ending balance | Balance at the end of last year |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page33
| Item | Ending balance | Balance at the end of last year |
| Interest receivable | ||
| Dividends receivable | ||
| Other accounts receivable | 18,314,003.84 | 25,841,206.66 |
| Total | 18,314,003.84 | 25,841,206.66 |
1. Other accounts receivable
(1) Disclosure by aging
| Aging | Ending balance | Balance at the end of last year |
| Within 1 year | 1,058,183.07 | 3,823,549.28 |
| 1 to 2 years | 36,436.71 | 553,190.98 |
| 2 to 3 years | 243,391.13 | 1,765,816.10 |
| Over 3 years | 49,016,380.54 | 51,739,037.91 |
| Subtotal | 50,354,391.45 | 57,881,594.27 |
| Less: provision for bad debts | 32,040,387.61 | 32,040,387.61 |
| Total | 18,314,003.84 | 25,841,206.66 |
(2) Disclosure by category
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Accrual proportion (%) | ||
| Accounts receivable with single provision for bad debts | 32,328,502.39 | 64.20 | 32,040,387.61 | 99.11 | 288,114.78 |
| Provision for bad debts by portfolio of credit risk | 18,025,889.06 | 35.80 | 18,025,889.06 | ||
| Including: low-risk portfolio | 18,025,889.06 | 35.80 | 18,025,889.06 | ||
| Total | 50,354,391.45 | 100.00 | 32,040,387.61 | 63.63 | 18,314,003.84 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page34
| Category | Balance at the end of last year | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Accrual proportion (%) | ||
| Accounts receivable with single provision for bad debts | 32,676,135.85 | 56.45 | 32,040,387.61 | 98.05 | 635,748.24 |
| Provision for bad debts by portfolio of credit risk | 25,205,458.42 | 43.55 | 25,205,458.42 | ||
| Including: low-risk portfolio | 25,205,458.42 | 43.55 | 25,205,458.42 | ||
| Total | 57,881,594.27 | 100.00 | 32,040,387.61 | 55.36 | 25,841,206.66 |
Accounts receivable with single provision for bad debts
| Name | Ending balance | |||
| Book balance | Provision for bad debts | Accrual proportion (%) | Causes | |
| Huiyang Kangtai Industrial Company | 14,311,626.70 | 14,311,626.70 | 100.00 | Uncollectible as excepted |
| Individual income tax | 2,470,039.76 | 2,470,039.76 | 100.00 | Uncollectible as excepted |
| Dormitory amount receivable | 1,736,004.16 | 1,736,004.16 | 100.00 | Uncollectible as excepted |
| Personal receivables | 7,498,997.87 | 7,498,997.87 | 100.00 | Uncollectible as excepted |
| Shandong Jinan Generation Equipment Plant | 3,560,000.00 | 3,560,000.00 | 100.00 | Uncollectible as excepted |
| Zuohao Clothing (Shenzhen) Co., Ltd. | 43,068.31 | 43,068.31 | 100.00 | Uncollectible as excepted |
| Shenzhen Guanhua Printing and Dyeing Co., Ltd. | 53,591.75 | 53,591.75 | 100.00 | Uncollectible as excepted |
| Shenzhen Nanhua Printing and Dyeing Co., Ltd. | 41,407.01 | 41,407.01 | 100.00 | Uncollectible as excepted |
| Huizhou Bangde Agricultural Ecological Organic Fertilizer Co., Ltd. | 25,788.00 | 25,788.00 | 100.00 | Uncollectible as excepted |
| Huizhou Lvhuan Fertilizer Co., Ltd. | 44,112.10 | 44,112.10 | 100.00 | Uncollectible as excepted |
| Others | 2,543,866.73 | 2,255,751.95 | 88.67 | Uncollectible as excepted |
| Total | 32,328,502.39 | 32,040,387.61 | 99.11 | |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page35
(3) Accrual of provision for bad debts
| Provision for bad debts | 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) | ||
| Beginning balance | 32,040,387.61 | 32,040,387.61 | ||
| Beginning balance in the current period | ||||
| -- turn to Phase II | ||||
| - turn to Phase III | ||||
| - return to Phase II | ||||
| - return to Phase I | ||||
| Current accrual | ||||
| Current return | ||||
| Rewrite in the current period | ||||
| Write-off in the current period | ||||
| Other changes | ||||
| Ending balance | 32,040,387.61 | 32,040,387.61 |
Changes in the book balance of other accounts receivable are as follows:
| Book balance | 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 at the end of last year | 25,205,458.42 | 32,676,135.85 | 57,881,594.27 | |
| Balance at the end of last year in the current period | ||||
| -- turn to Phase II |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page36
| Book balance | 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) | ||
| - turn to Phase III | ||||
| - return to Phase II | ||||
| - return to Phase I | ||||
| Increase in the current period | ||||
| Direct write-downs in the current period | 7,179,569.36 | 347,633.46 | 7,527,202.82 | |
| Current derecognition | ||||
| Other changes | ||||
| Ending balance | 18,025,889.06 | 32,328,502.39 | 50,354,391.45 |
(4) Classification by nature of payment
| Nature of payment | Ending book balance | Book balance at the end of last year |
| Deposit and security deposit | 2,784,868.96 | 8,213,574.51 |
| Withholding payments | 8,077,850.31 | 9,182,463.86 |
| Accounts receivable of Huidong Server | 14,740,501.44 | 14,740,501.44 |
| Current accounts and others | 24,751,170.74 | 25,745,054.46 |
| Subtotal | 50,354,391.45 | 57,881,594.27 |
| Less: provision for bad debts | 32,040,387.61 | 32,040,387.61 |
| Total | 18,314,003.84 | 25,841,206.66 |
(4) Top five other account receivables at period-end balance listed by arrears party
| Name of organization | Nature of payment | Book balance | Aging | Ratio in the total ending balance of other accounts receivable (%) | Ending balance of provision for bad debts |
| 1st place | Current accounts | 14,740,501.44 | 1-3 years | 29.27 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page37
| Name of organization | Nature of payment | Book balance | Aging | Ratio in the total ending balance of other accounts receivable (%) | Ending balance of provision for bad debts |
| 2nd place | Current accounts | 14,311,626.70 | Over 3 years | 28.42 | 14,311,626.70 |
| 3rd place | Current accounts | 3,560,000.00 | Over 3 years | 7.07 | 3,560,000.00 |
| 4th place | Deposits | 1,460,919.00 | Over 3 years | 2.90 | |
| 5th place | Current accounts | 1,408,866.89 | Over 3 years | 2.80 | 1,408,866.89 |
| Total | 35,481,914.03 | 70.46 | 19,280,493.59 |
(VI) Inventories
1. Classification of inventories
| Item | Ending balance | Balance at the end of last year | ||||
| Book balance | Inventory falling price reserves | Book value | Book balance | Inventory falling price reserves | Book value | |
| Raw materials | 144,000,440.38 | 59,079,222.05 | 84,921,218.33 | 149,489,121.27 | 61,358,046.54 | 88,131,074.73 |
| Sporadic spare parts | 358,080.02 | 358,080.02 | 369,916.40 | 369,916.40 | ||
| Total | 144,358,520.40 | 59,079,222.05 | 85,279,298.35 | 149,859,037.67 | 61,358,046.54 | 88,500,991.13 |
2. Inventory falling price reserves
| Item | Balance at the end of last year | Increase in the current period | Decrease in the current period | Ending balance | ||
| Reversed or recovered | Others | Return or write-off | Others | |||
| Raw materials | 61,358,046.54 | 661,460.81 | 2,940,285.30 | 59,079,222.05 | ||
| Total | 61,358,046.54 | 661,460.81 | 2,940,285.30 | 59,079,222.05 | ||
(VII) Contract assets
| Item | Ending balance | Balance at the end of last year |
| Operation and maintenance project settlement accounts receivable | 1,040,000.00 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page38
| Item | Ending balance | Balance at the end of last year |
| Project quality guarantee deposit | 217,009.58 | |
| Subtotal | 217,009.58 | 1,040,000.00 |
| Provision for impairment of contractual assets | ||
| Total | 217,009.58 | 1,040,000.00 |
(VIII)Other current assets
| Item | Ending balance | Balance at the end of last year |
| Large negotiable certificate of deposit | 180,000,000.00 | |
| Input VAT to be deducted | 1,103,481.37 | 324,040,257.98 |
| Prepaid income tax | 6,583,089.98 | 6,583,089.98 |
| Interest receivable on time deposits | 496,849.31 | 1,195,914.66 |
| Others | 65,419.78 | 49,399.00 |
| Total | 188,248,840.44 | 331,868,661.62 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page39
(IX)Long-term equity investments
| Investees | Balance at the end of last year | Increase or decrease in the current period | Ending balance | Ending balance of provision for impairment | |||||||
| Additional investment | Reduced investment | Investment profit and loss recognized by equity method | Adjustment of other comprehensive income | Other changes in equity | Cash dividends or profits declared and distributed | Provision for impairment | Others | ||||
| Associates | |||||||||||
| Huidong Server Harbor Comprehensive Development Company (hereinafter referred to as “Huidong Server”) | 6,986,655.19 | -2,572,633.39 | 4,414,021.80 | ||||||||
| Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. (hereinafter referred to as “Liaoyuan Environmental Protection”) | 6,208,396.44 | 72,873,680.00 | 79,082,076.44 | ||||||||
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page40
| Investees | Balance at the end of last year | Increase or decrease in the current period | Ending balance | Ending balance of provision for impairment | |||||||
| Additional investment | Reduced investment | Investment profit and loss recognized by equity method | Adjustment of other comprehensive income | Other changes in equity | Cash dividends or profits declared and distributed | Provision for impairment | Others | ||||
| Total | 6,986,655.19 | 3,635,763.05 | 72,873,680.00 | 83,496,098.24 | |||||||
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page41
(X) Other investments in equity instruments
1. Other investments in equity instruments
| Item | Balance at the end of this year | Balance at the end of last year | ||||
| Original book value | Changes in fair value | Ending balance | Original book value | Changes in fair value | Balance at the end of the year | |
| CPI Jiangxi Nuclear Power Company | 60,615,000.00 | 60,615,000.00 | 60,615,000.00 | 60,615,000.00 | ||
| Zhongsheng Technology (Jiangsu) Co., Ltd. | 140,000,000.00 | 140,000,000.00 | 140,000,000.00 | 140,000,000.00 | ||
| Shenzhen Petrochemical Products Bonded Trading Co., Ltd. | 2,500,000.00 | -2,500,000.00 | 2,500,000.00 | -2,500,000.00 | - | |
| Shenzhen Yuanzhi Ruixin Equity Investment Management Co., Ltd., a private equity investment fund partnership enterprise with the next-generation information technology | 100,000,000.00 | 100,000,000.00 | ||||
| Total | 303,115,000.00 | -2,500,000.00 | 300,615,000.00 | 203,115,000.00 | -2,500,000.00 | 200,615,000.00 |
2. Investment in non-trading equity instruments
| Item | Dividend income recognized in the current period | Cumulative gains | Cumulative 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 |
| CPI Jiangxi Nuclear Power Company | 453,587.35 | Intents to holding for a long-term | ||||
| Shenzhen Petrochemical Products Bonded Trading Co., Ltd. | -2,500,000.00 | Intents to holding for a long-term | ||||
| Zhongsheng Technology (Jiangsu) Co., Ltd. | 8,400,000.00 | Intents to holding for a long-term | ||||
| Total | 8,853,587.35 | -2,500,000.00 |
(XI)Investment properties
1. Investment real estate measured at cost
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page42
| Item | Houses and buildings | Total |
| 1. Original book value | ||
| (1) Balance at the end of last year | 9,708,014.96 | 9,708,014.96 |
| (2) Increase in the current period | ||
| (3) Decrease in the current period | ||
| (4) Ending balance | 9,708,014.96 | 9,708,014.96 |
| 2. Accumulated depreciation and accumulated amortization | ||
| (1) Balance at the end of last year | 7,698,963.16 | 7,698,963.16 |
| (2) Increase in the current period | 175,707.60 | 175,707.60 |
| (3) Decrease in the current period | ||
| (4) Ending balance | 7,874,670.76 | 7,874,670.76 |
| 3. Provision for impairment | ||
| (1) Balance at the end of last year | ||
| (2) Increase in the current period | ||
| (3) Decrease in the current period | ||
| (4) Ending balance | ||
| 4. Book value | ||
| (1) Ending book value | 1,833,344.20 | 1,833,344.20 |
| (2) Book value at the end of the previous year | 2,009,051.80 | 2,009,051.80 |
(XII) Fixed assets
1. Fixed assets and disposal of fixed assets
| Item | Ending balance | Balance at the end of last year |
| Fixed assets | 591,290,204.31 | 643,256,398.30 |
| Disposal of fixed assets | ||
| Total | 591,290,204.31 | 643,256,398.30 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page43
2. Fixed assets
| Item | Houses and buildings | Machinery and equipment | Means of transport | Others | Total |
| 1. Original book value | |||||
| (1) Balance at the end of last year | 426,009,822.97 | 3,191,370,467.04 | 14,881,705.15 | 61,313,836.82 | 3,693,575,831.98 |
| (2) Increase in the current period | 358,429.27 | 3,633,815.36 | 967,643.92 | 4,959,888.55 | |
| - Purchase | 792,046.48 | 1,139,740.48 | |||
| - Transfer of projects under construction | 3,633,815.36 | 23,613.27 | 3,657,428.63 | ||
| - Others | 358,429.27 | 151,984.17 | 162,719.44 | ||
| (3) Decrease in the current period | 2,214,068.53 | 469,911,937.47 | 6,743,170.13 | 17,659,003.94 | 496,528,180.07 |
| - Disposal or scrapping | 2,214,068.53 | 469,756,380.42 | 6,736,007.74 | 17,659,003.94 | 496,365,460.63 |
| -- Others | 155,557.05 | 7,162.39 | 162,719.44 | ||
| (4) Ending balance | 424,154,183.71 | 2,725,092,344.93 | 8,138,535.02 | 44,622,476.80 | 3,202,007,540.46 |
| 2. Accumulated depreciation | |||||
| (1) Balance at the end of last year | 286,391,266.26 | 2,308,965,299.56 | 8,678,482.02 | 46,874,270.77 | 2,650,909,318.61 |
| (2) Increase in the current period | 10,315,702.27 | 16,333,483.84 | 1,882,884.43 | 2,745,555.12 | 31,277,625.66 |
| - Accrual | 10,314,516.80 | 16,333,483.84 | 1,882,884.43 | 2,727,144.02 | 31,258,029.09 |
| - Others | 1,185.47 | 18,411.10 | 19,596.57 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page44
| Item | Houses and buildings | Machinery and equipment | Means of transport | Others | Total |
| (3) Decrease in the current period | 1,928,912.63 | 412,856,129.18 | 5,549,496.30 | 15,862,618.79 | 436,197,156.90 |
| - Disposal or scrapping | 1,928,912.63 | 412,836,532.61 | 5,549,496.30 | 15,862,618.79 | 436,177,560.33 |
| - Others | 19,596.57 | 19,596.57 | |||
| (4) Ending balance | 294,778,055.90 | 1,912,442,654.22 | 5,011,870.15 | 33,757,207.10 | 2,245,989,787.37 |
| 3. Provision for impairment | |||||
| (1) Balance at the end of last year | 22,469,672.10 | 376,720,124.57 | 56,300.08 | 164,018.32 | 399,410,115.07 |
| (2) Increase in the current period | 104,296.86 | 7,074,566.12 | 67,375.50 | 7,246,238.48 | |
| - Accrual | 104,296.86 | 7,074,566.12 | 67,375.50 | 7,246,238.48 | |
| (3) Decrease in the current period | 41,905,811.13 | 3,123.60 | 19,870.04 | 41,928,804.77 | |
| - Disposal or scrapping | 41,905,811.13 | 3,123.60 | 19,870.04 | 41,928,804.77 | |
| (4) Ending balance | 22,573,968.96 | 341,888,879.56 | 53,176.48 | 211,523.78 | 364,727,548.78 |
| 4. Book value | |||||
| (1) Ending book value | 106,802,158.85 | 470,760,811.15 | 3,073,488.39 | 10,653,745.92 | 591,290,204.31 |
| (2) Book value at the end of the previous year | 117,148,884.61 | 505,685,042.91 | 6,146,923.05 | 14,275,547.73 | 643,256,398.30 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page45
3. Fixed assets without certificate of title
| Item | Book value | Reasons for the failure of the certificate of title |
| Circulating water pump house | 906,810.74 | Procedures uncompleted |
| Cooling tower | 673,259.25 | Procedures uncompleted |
| Complex building | 443,246.19 | Procedures uncompleted |
| Comprehensive building canteen | 227,979.99 | Procedures uncompleted |
| Chemical water treatment workshop | 232,960.00 | Procedures uncompleted |
| Main entrance mail room | 61,599.00 | Procedures uncompleted |
| Total | 2,545,855.17 |
(XIII) Construction in process
1. Construction in process
| Item | Ending balance | Balance at the end of last year |
| Construction in process | 4,861,062.16 | 6,088,768.51 |
| Total | 4,861,062.16 | 6,088,768.51 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page46
2. Projects under construction
| Item | Ending balance | Balance at the end of last year | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Cogeneration project | 60,307,712.44 | 59,515,356.69 | 792,355.75 | 60,307,712.44 | 58,610,372.06 | 1,697,340.38 |
| Oil-to-gas project | 9,441,286.39 | 9,441,286.39 | 13,230,574.53 | 13,230,574.53 | ||
| Technical renovation project | 5,673,706.41 | 1,605,000.00 | 4,068,706.41 | 5,862,678.13 | 1,471,250.00 | 4,391,428.13 |
| Total | 75,422,705.24 | 70,561,643.08 | 4,861,062.16 | 79,400,965.10 | 73,312,196.59 | 6,088,768.51 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page47
3. Changes in significant projects under construction in the current period
| Project name | Budget | Balance at the end of last year | Increase in the current period | Amount transferred into fixed assets in the current period | Other decreases in the current period (Note) | Ending balance | Ratio of accumulated project investment in budget (%) | Project progress (%) | Accumulative amount of capitalization of interest | Including: capitalization of interest in the current period | Rate of interest capitalization in the current period (%) | Capital source |
| Cogeneration project | 60,000,000.00 | 60,307,712.44 | 60,307,712.44 | 100.51 | 100.00 | 6,476,185.46 | Self-raised and borrowing | |||||
| Oil-to-gas project | 13,230,574.53 | 3,789,288.14 | 9,441,286.39 | Self-raised | ||||||||
| Total | 60,000,000.00 | 73,538,286.97 | 3,789,288.14 | 69,748,998.83 | 6,476,185.46 |
Note: The decrease in the current period is due to the disposal of No. 7/9 unit oil-to-gas project.
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page48
4. Accrual of impairment provision for construction in progress in the current period
| Item | Amount of provision in the current period | Reason for provision |
| Cogeneration project | 904,984.63 | According to the government plan, some pipelines that have been dismantled are in the state to be scrapped |
| Technical renovation project | 133,750.00 | Technical innovation |
| Total | 1,038,734.63 |
(XIV) Right-of-use assets
| Item | Houses and buildings | Total |
| I. Original book value | ||
| 1. Beginning balance | ||
| 2. Increase in the current period | 16,322,014.37 | 16,322,014.37 |
| 3. Decrease in the current period | ||
| 4. Ending balance | 16,322,014.37 | 16,322,014.37 |
| II. Accumulated depreciation | ||
| 1. Beginning balance | ||
| 2. Increase in the current period | 8,614,396.47 | 8,614,396.47 |
| (1) Provision | 8,614,396.47 | 8,614,396.47 |
| 3. Decrease in the current period | ||
| 4. Ending balance | 8,614,396.47 | 8,614,396.47 |
| III. Provision for impairment | ||
| IV. Book value | ||
| 1. Ending book value | 7,707,617.90 | 7,707,617.90 |
| 2. Book value at the beginning of the year |
Note: The current right-of-use assets is mainly for the 16th and 17th floors of Hantang Mansion,the operating lease for office use.(XV) Intangible assets
1. Intangible assets
| Item | Land use right | Patent right | Software | Total |
| 1. Original book value | ||||
| (1) Balance at the end of last year | 60,813,994.76 | 3,886,757.08 | 64,700,751.84 | |
| (2) Increase in the current period | 138,625.07 | 138,625.07 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page49
| Item | Land use right | Patent right | Software | Total |
| - Purchase | 138,625.07 | 138,625.07 | ||
| (3) Decrease in the current period | 103,773.59 | 103,773.59 | ||
| - Others | 103,773.59 | 103,773.59 | ||
| (4) Ending balance | 60,813,994.76 | 138,625.07 | 3,782,983.49 | 64,735,603.32 |
| 2. Accumulated amortization | ||||
| (1) Balance at the end of last year | 40,643,255.55 | 3,591,589.43 | 44,234,844.98 | |
| (2) Increase in the current period | 622,629.60 | 31,817.30 | 46,956.32 | 701,403.22 |
| - Accrual | 622,629.60 | 31,817.30 | 46,956.32 | 701,403.22 |
| (3) Decrease in the current period | ||||
| - Disposal | ||||
| (4) Ending balance | 41,265,885.15 | 31,817.30 | 3,638,545.75 | 44,936,248.20 |
| 3. Provision for impairment | ||||
| (1) Balance at the end of last year | ||||
| (2) Increase in the current period | ||||
| - Accrual | ||||
| (3) Decrease in the current period | ||||
| - Disposal | ||||
| (4) Ending balance | ||||
| 4. Book value | ||||
| (1) Ending book value | 19,548,109.61 | 106,807.77 | 144,437.74 | 19,799,355.12 |
| (2) Book value at the end of the previous year | 20,170,739.21 | 295,167.65 | 20,465,906.86 |
2. Land use right without certificate of title
| Item | Book value | Reasons for the failure of the certificate of title |
| Land use right of the wharf and pipe gallery | 381,039.48 | Influence of international macro-control |
| Total | 381,039.48 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page50
(XVI) Long-term deferred expenses
| Item | Balance at the end of last year | Increase in the current period | Amortization in current period | Other decreases | Ending balance |
| Decoration fee | 1,716,460.30 | 497,331.12 | 1,219,129.18 | ||
| Total | 1,716,460.30 | 497,331.12 | 1,219,129.18 |
(XVII) Deferred income tax assets and deferred income tax liabilities
1. Deferred income tax assets without set-off
| Item | Ending balance | Balance at the end of last year | ||
| Deductible temporary differences | Deferred income tax assets | Deductible temporary differences | Deferred income tax assets | |
| Provision for bad debts | 3,649,109.93 | 547,366.49 | 1,937,145.52 | 484,286.38 |
| Changes in fair value of other investments in equity instruments | 2,500,000.00 | 625,000.00 | 2,500,000.00 | 625,000.00 |
| Total | 6,149,109.93 | 1,172,366.49 | 4,437,145.52 | 1,109,286.38 |
2. Details of unrecognized deferred income tax assets
| Item | Ending balance | Balance at the end of last year |
| Deductible temporary differences | 545,598,991.76 | 585,949,690.28 |
| Deductible loss | 560,445,722.73 | 346,683,937.56 |
| Total | 1,106,044,714.49 | 932,633,627.84 |
(XVIII) Other non-current assets
| Item | Ending balance | Balance at the end of last year |
| Project quality guarantee deposit | 5,371,398.18 | |
| Total | 5,371,398.18 |
(XIX) Short-term borrowings
1. Classification of short-term borrowings
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page51
| Item | Ending balance | Balance at the end of last year |
| Credit borrowings | 885,229,358.05 | 856,861,840.80 |
| Accrued interest | 1,806,895.30 | 1,582,322.45 |
| Bill discounting interest | -7,078,395.91 | |
| Total | 879,957,857.44 | 858,444,163.25 |
(XX) Notes payable
| Category | Ending balance | Balance at the end of last year |
| Bank acceptance | 137,298,902.17 | 135,025,883.27 |
| Total | 137,298,902.17 | 135,025,883.27 |
(XXI) Accounts payable
1. Presentation of accounts payable
| Item | Ending balance | Balance at the end of last year |
| Materials | 292,422.50 | 2,325,920.64 |
| Electricity | 937,613.72 | 1,078,066.07 |
| Labor | 3,997,800.00 | 3,299,480.00 |
| Total | 5,227,836.22 | 6,703,466.71 |
(XXII) Employee compensation payable
1. List of employee compensation payable
| Item | Balance at the end of last year | Increase in the current period | Decrease in the current period | Ending balance |
| Short-term remunerations | 40,963,433.02 | 111,462,128.57 | 123,128,746.52 | 29,296,815.07 |
| Post-employment welfare-defined contribution plans | 569,587.94 | 15,707,993.05 | 16,277,580.99 | |
| Dismission welfare | ||||
| Other welfare due within one year | ||||
| Total | 41,533,020.96 | 127,170,121.62 | 139,406,327.51 | 29,296,815.07 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page52
2. Presentation of short-term compensation
| Item | Balance at the end of last year | Increase in the current period | Decrease in the current period | Ending balance |
| (1) Wages, bonuses, allowances and subsidies | 40,511,401.25 | 82,852,516.05 | 94,557,597.94 | 28,806,319.36 |
| (2) Welfare for workers and staff | 62,077.00 | 10,568,296.67 | 10,523,096.47 | 107,277.20 |
| (3) Social insurance | 5,741,921.78 | 5,741,921.78 | ||
| Including: medical insurance | 5,242,249.55 | 5,242,249.55 | ||
| Work-related injury insurance | 150,878.92 | 150,878.92 | ||
| Maternity insurance | 348,793.31 | 348,793.31 | ||
| (4) Housing accumulation fund | 10,433,373.60 | 10,433,373.60 | ||
| (5) Labor union expenditure and personnel education expense | 389,954.77 | 1,866,020.47 | 1,872,756.73 | 383,218.51 |
| (6) Short-term compensated absences | ||||
| (7) Short-term profit-sharing plan | ||||
| (8) Others | ||||
| Total | 40,963,433.02 | 111,462,128.57 | 123,128,746.52 | 29,296,815.07 |
3 Defined contribution plan
| Item | Balance at the end of last year | Increase in the current period | Decrease in the current period | Ending balance |
| Basic endowment insurance | 11,336,151.45 | 11,336,151.45 | ||
| Unemployment insurance | 142,141.54 | 142,141.54 | ||
| Enterprise annuity | 569,587.94 | 4,229,700.06 | 4,799,288.00 | |
| Total | 569,587.94 | 15,707,993.05 | 16,277,580.99 |
(XXIII) Taxes payable
| Item | Ending balance | Balance at the end of last year |
| VAT | 2,068,236.33 | 706,615.96 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page53
| Item | Ending balance | Balance at the end of last year |
| Individual income tax | 1,825,992.00 | 1,402,165.48 |
| City maintenance tax | 2,464.98 | 43,868.84 |
| Education surtax | 630.08 | 25,354.34 |
| Local education surtax | 420.06 | 16,902.90 |
| Property tax | 996,166.86 | 1,524,487.98 |
| Stamp duty | 170,883.69 | 63,247.50 |
| Environmental protection duty | 62,437.77 | |
| Others | 42,872.73 | 300,759.12 |
| Total | 5,107,666.73 | 4,145,839.89 |
(XXIV)Other payables
| Item | Ending balance | Balance at the end of last year |
| Interest payable | ||
| Other payables | 22,997,466.80 | 62,678,254.02 |
| Total | 22,997,466.80 | 62,678,254.02 |
1. Other payables
(1) By nature of payment
| Item | Ending balance | Balance at the end of last year |
| Project funds | 7,525,391.28 | 4,991,246.36 |
| Quality deposit | 6,973,652.54 | 6,308,254.95 |
| Accrued expenses | 7,429,154.13 | 8,537,422.41 |
| Materials | 52,087.65 | 30,721,390.14 |
| Others | 1,017,181.20 | 12,119,940.16 |
| Total | 22,997,466.80 | 62,678,254.02 |
(2) Top five of other payables
| Name of organization | Book balance | Ratio in the balance of other payables (%) |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page54
| Name of organization | Book balance | Ratio in the balance of other payables (%) |
| 1st place | 4,760,000.00 | 20.70 |
| 2nd place | 1,872,500.00 | 8.14 |
| 3rd place | 1,864,000.00 | 8.11 |
| 4th place | 860,190.12 | 3.74 |
| 5th place | 560,000.00 | 2.43 |
| Total | 9,916,590.12 | 43.12 |
(XXV)Non-current liabilities due within one year
| Item | Ending balance | Balance at the end of last year |
| Lease liabilities due within one year | 6,279,115.44 | |
| Less: unrecognized financing expenses | 264,995.49 | |
| Total | 6,014,119.95 |
(XXVI)Other current liabilities
| Item | Ending balance | Balance at the end of last year |
| VAT tax to be carried forward | 21,600.00 | |
| Total | 21,600.00 |
(XXVII)Long-term borrowings
| Item | Ending balance | Balance at the end of last year |
| Credit borrowings | 28,019,758.68 | |
| Total | 28,019,758.68 |
(XXVIII)Lease liabilities
1. Details of lease liabilities
| Item | Ending balance | Balance at the end of last year |
| Lease liabilities | 2,291,614.01 | |
| Less: unrecognized financing expenses | 29,453.98 | |
| Total | 2,262,160.03 |
2. Maturity analysis of lease liabilities
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page55
| Item | Ending balance | Balance at the end of last year |
| 1-2 years | 2,262,160.03 | |
| Total | 2,262,160.03 |
(XXIX)Estimated liabilities
| Item | Balance at the end of last year | Increase in the current period | Decrease in the current period | Ending balance | Cause |
| Pending action | 15,000,000.00 | 15,000,000.00 | |||
| Total | 15,000,000.00 | 15,000,000.00 |
Note: On November 29, 2013, Shenzhen Server and Jiahua Building Products (Shenzhen) Co.,Ltd. (Jiahua Building) signed a supplementary term aiming at equity transfer over equityattribution and division of Yapojiao Dock, which belongs to Shenzhen Server, Huidong Server,and Huidong Nianshan Town Government as well as its subordinate Nianshan Group. In order tosolve this remaining historic problem, Shenzhen Server saved 12,500,000.00 Yuan incondominium deposit account as guarantee. In addition, Server pledged its 20% of equity holdingfrom 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 eventconcerned predicted amounting to 27,500,000.00 Yuan by the Group, the balance at the end of2019 was 26,646,056.28 Yuan.On November 12, 2020, Huidong Server and other related parties reached a preliminary settlementagreement on the land disputes in the estimated liabilities. According to this, accrual liability of6,584,816.78 Yuan was returned by Shenzhen Server. In 2020, Shenzhen Server to bear thelawyer’s and other expenses in accordance with the agreed proportion , that is 137,731.22 Yuan,the accrual liability has 6,722,548.00 Yuan declined in total in the Period. The balance of19,923,508.28 Yuan refers to the repayment obligations that are likely to occur before thecompletion of the above matters.On November 12, 2020, Huizhou Commercial Construction and Development Corporation andHuidong Server Harbor Comprehensive Development Company signed the “Creditor's RightsAssignment Agreement”, and the reconciliation record was executed by the People's Court ofHuidong County, which partially solved the issues of ownership and division of rights andinterests of Yapojiao Wharf. On January 20, 2021, Shenzhen Server received5,000,000.00 Yuan returned from the joint account. Accordingly, Shenzhen Server returned itsestimated liabilities of 4,573,508.28 Yuan. In 2021, Shenzhen Server bore the lawyer and otherexpenses of 350,000 Yuan for the issues in accordance with the agreed proportion, the estimatedliabilities totally reduced by 4,923,508.28 Yuan in current period. The balance of15,000,000.00 Yuan is a repayment obligation likely to occur before the completion of the abovematters.(XXX)Deferred income
| Item | Balance at the end of last year | Increase in the current period | Decrease in the current period | Ending balance | Cause |
| Government subsidies | 88,079,970.09 | 390,000.00 | 6,324,373.49 | 82,145,596.60 | Government subsidies |
| Total | 88,079,970.09 | 390,000.00 | 6,324,373.49 | 82,145,596.60 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page56
Items with government subsidy involved:
| Liabilities | Balance at the end of last year | Subsidy amount newly increased in the current period | Amount included in current profit and loss | Other changes | Ending balance | Assets related/income related |
| Government subsidies for low-nitrogen equipment renovation | 24,104,286.46 | 488,621.77 | 23,615,664.69 | Assets related | ||
| Subsidies for the Motor Energy Efficiency Improvement Funding Scheme | 332,640.00 | 34,560.00 | 298,080.00 | Assets related | ||
| Support fund of recycling economy for sludge drying | 6,157,268.11 | 647,002.92 | 5,510,265.19 | Assets related | ||
| Treasury subsidies for sludge drying | 2,316,250.00 | 255,000.00 | 2,061,250.00 | Assets related | ||
| Special funds for energy conservation and emission reduction | 456,148.66 | 114,037.32 | 342,111.34 | Assets related | ||
| Subsidy for quality promotion of the air environment in Shenzhen | 54,061,987.96 | 4,731,818.16 | 49,330,169.80 | Assets related | ||
| Funding for technical transformation investment project in 2021-2022 | 651,388.90 | 390,000.00 | 53,333.32 | 988,055.58 | Assets related | |
| Total | 88,079,970.09 | 390,000.00 | 6,324,373.49 | 82,145,596.60 |
(XXXI)Other non-current liabilities
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page57
| Item | Ending balance | Balance at the end of last year |
| Equity of other partners in the partnership | 47,511.72 | 50,310.78 |
| Total | 47,511.72 | 50,310.78 |
(XXXII)Share capital
| Item | Balance at the end of last year | Increase (+) and decrease (-) of changes in the current period | Ending balance | ||||
| New shares issued | Bonus shares | Capitalization of public reserve | Others | Subtotal | |||
| Total amount of shares | 602,762,596.00 | 602,762,596.00 | |||||
(XXXIII)Capital reserves
| Item | Balance at the end of last year | Increase in the current period | Decrease in the current period | Ending balance |
| Capital premium (capital stock premium) | 233,035,439.62 | 233,035,439.62 | ||
| Other capital reserves | 129,735,482.48 | 129,735,482.48 | ||
| Total | 362,770,922.10 | 362,770,922.10 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page58
(XXXIV)Other comprehensive income
| Item | Balance at the end of last year | Beginning balance | Amount for the current period | Ending balance | |||||
| Account before income tax in the year | Less: written in other comprehensive income in previous period and carried forward to profits and losses in current period | Less: written in other comprehensive income in previous period and carried forward to retained earnings in current period | Less: income tax expense | Belong to parent company after tax | Belong to minority shareholders after tax | ||||
| 1. Other comprehensive income items which will not be reclassified subsequently to profit of loss | |||||||||
| Including: changes of the defined benefit plans that re-measured | |||||||||
| Other comprehensive income under equity method that cannot be transfer to profits/losses | |||||||||
| Changes in fair value of other investments in equity instruments | -2,500,000.00 | -2,500,000.00 | |||||||
| Total other comprehensive income | -2,500,000.00 | -2,500,000.00 | |||||||
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page59
(XXXV) Special reserves
| Item | Balance at the end of last year | Increase in the current period | Decrease in the current period | Ending balance |
| Work safety costs | 879,946.49 | 879,946.49 | ||
| Total | 879,946.49 | 879,946.49 |
(XXXVI)Surplus reserves
| Item | Balance at the end of last year | Increase in the current period | Decrease in the current period | Ending balance |
| Statutory surplus reserves | 310,158,957.87 | 310,158,957.87 | ||
| Arbitrary surplus reserves | 22,749,439.73 | 22,749,439.73 | ||
| Total | 332,908,397.60 | 332,908,397.60 |
(XXXVII)Undistributed profit
| Item | Amount for the current period | Amount for the previous period |
| Undistributed profit at the end of the previous year before adjustment | 319,351,219.81 | 758,799,931.94 |
| Total undistributed profit adjusted at the beginning of the year (+ for increase, - for decrease) | ||
| Undistributed profit at the beginning of the year after adjustment | 319,351,219.81 | 758,799,931.94 |
| Add: net profit attributable to shareholders of parent company | -160,163,240.67 | -439,448,712.13 |
| Less: withdrawal of statutory surplus reserve | ||
| Ordinary shares dividends payable | ||
| Undistributed profit at the end of the period | 159,187,979.14 | 319,351,219.81 |
(XXXVIII)Operating income and operating costs
| Item | Amount for the current period | Amount for the previous period | ||
| Income | Cost | Income | Cost | |
| Main business | 692,615,690.26 | 804,420,389.38 | 755,956,762.36 | 849,690,713.43 |
| Other | 1,611,967.02 | 258,934.10 | 1,218,981.05 | 569,945.97 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page60
| Item | Amount for the current period | Amount for the previous period | ||
| Income | Cost | Income | Cost | |
| Total | 694,227,657.28 | 804,679,323.48 | 757,175,743.41 | 850,260,659.40 |
(XXXIX)Tax and extras
| Item | Amount for the current period | Amount for the previous period |
| Property tax | 2,254,621.19 | 2,220,037.22 |
| Travel tax | 15,821.56 | 16,916.56 |
| Land use tax | 761,201.97 | 761,202.39 |
| Stamp duty | 827,734.86 | 701,797.80 |
| City maintenance tax | 881,150.58 | 1,168,205.83 |
| Education surtax | 376,909.09 | 572,120.09 |
| Local education surtax | 251,272.77 | 381,413.39 |
| Environmental protection tax | 32,638.18 | 459,455.02 |
| Total | 5,401,350.20 | 6,281,148.30 |
(XL)Selling and distribution expenses
| Item | Amount for the current period | Amount for the previous period |
| Employee compensation | 273,048.37 | 450,223.22 |
| Entertainment expenses | 13,684.45 | 100,232.70 |
| Agency fees | 45,050.50 | 32,737.16 |
| Property insurance | 43,272.46 | 48,684.42 |
| Others | 296,784.29 | |
| Total | 375,055.78 | 928,661.79 |
(XLI)G&A expenses
| Item | Amount for the current period | Amount for the previous period |
| Employee compensation | 49,552,978.78 | 56,452,092.75 |
| Lease fees | 326,066.00 | 6,461,642.19 |
| Depreciation cost | 12,727,414.30 | 10,879,329.80 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page61
| Item | Amount for the current period | Amount for the previous period |
| Entertainment expenses | 2,262,676.26 | 2,611,353.46 |
| Agency fees | 2,917,219.44 | 6,597,046.69 |
| Repair costs | 438,047.18 | 382,708.01 |
| Environmental protection fee | 207,689.97 | 1,408,486.56 |
| Vehicle expenses | 1,000,874.34 | 2,892,135.99 |
| Office expenses | 566,218.06 | 591,516.35 |
| Expenses of the Board of Directors | 458,825.47 | 1,033,954.26 |
| Communication expenses | 632,219.43 | 1,235,859.50 |
| Amortization of intangible assets | 76,716.36 | 139,202.16 |
| Property management fees | 1,066,655.06 | 1,110,962.08 |
| Travel expenses | 346,228.17 | 470,531.57 |
| Share certificate fee | 512,986.66 | 642,314.97 |
| Others | 6,006,535.06 | 10,377,790.35 |
| Total | 79,099,350.54 | 103,286,926.69 |
(XLII)R&D expenses
| Item | Amount for the current period | Amount for the previous period |
| Employee compensation | 23,134,437.76 | 20,409,064.48 |
| Depreciation cost | 1,822,436.62 | 353,385.65 |
| Others | 690,660.01 | 171,262.85 |
| Total | 25,647,534.39 | 20,933,712.98 |
(XLIII)Financial expenses
| Item | Amount for the current period | Amount for the previous period |
| Interest expense | 40,218,036.98 | 30,629,953.77 |
| Less: capitalized interest | ||
| Expensed interest expense | 40,218,036.98 | 30,629,953.77 |
| Less: interest income | 8,790,975.96 | 15,728,363.74 |
| Foreign exchange losses (gain is listed with “-”) | -460,083.33 | 112,793.73 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page62
| Item | Amount for the current period | Amount for the previous period |
| Service fee | 247,340.17 | 198,353.91 |
| Amortization of financing charges unrecognized | 928,484.64 | |
| Total | 32,142,802.50 | 15,212,737.67 |
(XLIV)Other income
| Item | Amount for the current period | Amount for the previous period |
| Government subsidies | 9,333,093.72 | 7,074,336.60 |
| Total | 9,333,093.72 | 7,074,336.60 |
Government subsidies included in other income
| Subsidy items | Amount for the current period | Amount for the previous period | Assets related/income related |
| Subsidies for transformation of low nitrogen projects | 488,621.77 | 544,168.22 | Asset related |
| Support fund of recycling economy for sludge drying | 647,002.92 | 647,002.92 | Asset related |
| Treasury subsidies for sludge drying | 255,000.00 | 255,000.00 | Asset related |
| Subsidy for quality promotion of the air environment in Shenzhen (note 1) | 4,731,818.16 | 4,731,818.16 | Asset related |
| Special funds for energy conservation and emission reduction | 114,037.32 | 114,037.32 | Asset related |
| Funding scheme for the improvement of motor energy efficiency | 34,560.00 | 34,560.00 | Asset related |
| Funding for technical transformation investment project in 2021-2022 | 53,333.32 | 18,611.10 | Asset related |
| Information construction | 25,490.12 | Asset related | |
| National High-Tech Enterprises Multiplication Plan | 500,000.00 | 400,000.00 | Income related |
| Special funds for development of independent innovation industries | 246,100.00 | 100,000.00 | Income related |
| Individual tax refund | 299,897.34 | 195,684.76 | Income related |
| Lump-sum subsidy for training workers on post | 128,000.00 | Income related | |
| Subsidies for pilot demonstration of industrial “carbon peak” work | 570,000.00 | Income related |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page63
| Subsidy items | Amount for the current period | Amount for the previous period | Assets related/income related |
| Support funds for office housing of listed company | 1,000,000.00 | Income related | |
| Social security subsidies | 83,490.91 | Income related | |
| Subsidies for stabilizing posts | 153,231.98 | 7,964.00 | Income related |
| Science and technology innovation voucher | 28,000.00 | Income related | |
| Total | 9,333,093.72 | 7,074,336.60 |
(XLV)Investment income
| Item | Amount for the current period | Amount for the previous period |
| Long-term equity investment income by equity | 3,635,763.05 | -1,906,753.67 |
| Investment income from disposal of long-term equity investments | ||
| Investment income from financial assets held for trading during the holding period | 58,227,971.21 | 47,635,822.62 |
| Dividend income obtained during the holding period of other equity instrument investments | 8,853,587.35 | 252,016.49 |
| Total | 70,717,321.61 | 45,981,085.44 |
(XLVI)Credit impairment loss
| Item | Amount for the current period | Amount for the previous period |
| Losses on accounts receivable | -1,711,964.42 | |
| Total | -1,711,964.42 |
(XLVII)Asset impairment loss
| Item | Amount for the current period | Amount for the previous period |
| Loss of inventory impairment | -661,460.81 | -11,958,247.40 |
| Fixed asset impairment loss | -7,246,238.48 | -277,713,051.89 |
| Impairment loss of construction in | -1,038,734.63 | -37,807,711.63 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page64
| Item | Amount for the current period | Amount for the previous period |
| process | ||
| Total | -8,946,433.92 | -327,479,010.92 |
(XLVIII)Income from disposal of assets
| Item | Amount for the current period | Amount for the previous period | Amount reckoned into non-recurring profits/losses of the period |
| Profit and loss on disposal of fixed assets | 291,985.88 | 974,699.74 | 291,985.88 |
| Total | 291,985.88 | 974,699.74 | 291,985.88 |
(IL)Non-operating income
| Item | Amount for the current period | Amount for the previous period | Amount reckoned into non-recurring profits/losses of the period |
| Government subsidies | 39,600.00 | 39,600.00 | |
| Return of estimated liabilities | 5,000,000.00 | ||
| Others | 261,868.99 | ||
| Total | 39,600.00 | 5,261,868.99 | 39,600.00 |
(L)Non-operating expenses
| Item | Amount for the current period | Amount for the previous period | Amount reckoned into non-recurring profits/losses of the period |
| External donation | 10,000.00 | 10,000.00 | 10,000.00 |
| Loss of scrap from non-current assets | 1,463,939.59 | 188,716.00 | 1,463,939.59 |
| Others | 717,844.64 | 49,500.00 | 664,665.42 |
| Total | 2,191,784.23 | 248,216.00 | 2,138,605.01 |
(LI) Income tax expenses
1. Income tax expenses
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page65
| Item | Amount for the current period | Amount for the previous period |
| Current income tax expenses | 140,503.27 | |
| Deferred income tax expenses | -63,080.11 | 1,096,763.31 |
| Total | -63,080.11 | 1,237,266.58 |
2. Adjustment on accounting profit and income tax expenses
| Item | Amount for the current period |
| Total profit | -185,585,940.97 |
| Income tax measured by statutory/applicable tax rate | -27,837,891.15 |
| Effect of different tax rate applicable to subsidiaries | -20,849,070.65 |
| Effect of adjustment to income tax in previous periods | |
| Effect of non-taxable income | -1,447,907.80 |
| Effect of non-deductible costs, expenses and losses | 522,955.64 |
| Effect of using deductible loss of previously unrecognized deferred income tax assets | -7,315,628.75 |
| Effect of deductible temporary differences or deductible loss of unrecognized deferred income tax assets in the current period | 59,996,825.35 |
| Changes in deferred tax assets/liabilities at the beginning of the period due to tax rate adjustments | 193,714.55 |
| Effect of additional deduction of R&D expenses | -3,326,077.30 |
| Income tax expenses | -63,080.11 |
(LII) Earnings per share
1. Basic earnings per share
Basic earnings per share is calculated by dividing the consolidated net profit attributable toordinary shareholders of the parent company by the weighted average number of ordinary sharesissued by the Company:
| Item | Amount for the current period | Amount for the previous period |
| Consolidated net profit attributable to ordinary shareholders of the parent company | -160,163,240.67 | -439,448,712.13 |
| Weighted average number of ordinary shares issued by the Company | 602,762,596.00 | 602,762,596.00 |
| Basic earnings per share | -0.2657 | -0.7291 |
2. Diluted earnings per share
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page66
| Item | Amount for the current period | Amount for the previous period |
| Consolidated net profit attributable to ordinary shareholders of the parent company (diluted) | -160,163,240.67 | -439,448,712.13 |
| Weighted average number of ordinary shares issued by the Company (diluted) | 602,762,596.00 | 602,762,596.00 |
| Diluted earnings per share | -0.2657 | -0.7291 |
(LIII)Statement of cash flows
1. Cash received with other operating activities concerned
| Item | Amount for the current period | Amount for the previous period |
| Interest income | 9,272,736.48 | 17,328,709.70 |
| Income from government subsidies | 2,800,716.98 | 18,415,845.60 |
| Current accounts received | 42,010,090.88 | 15,273,968.49 |
| Others | 407,871.92 | |
| Total | 54,083,544.34 | 51,426,395.71 |
2. Other relevant cash paid for operating activities
| Item | Amount for the current period | Amount for the previous period |
| Cash paid for G&A expenses, R&D expenses and selling and distribution expenses | 24,583,319.72 | 44,496,464.32 |
| Current accounts paid | 1,221,929.96 | 12,486,872.79 |
| Total | 25,805,249.68 | 56,983,337.11 |
3. Other cash paid concerning investing activities
| Item | Amount for the current period | Amount for the previous period |
| Cash paid for purchasing negotiable certificates of large deposit | 180,000,000.00 | |
| Cash paid for disposal of fixed assets | 9,000.00 | |
| Total | 180,009,000.00 |
4. Other relevant cash paid for financing activities
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page67
| Item | Amount for the current period | Amount for the previous period |
| Margin of bank acceptance bills | 27,474,594.34 | |
| Total | 27,474,594.34 |
(LIV)Supplementary statement of cash flows
1. Supplementary statement of cash flows
| Supplementary information | Amount for the current period | Amount for the previous period |
| 1. Net profit adjusted to cash flow of operation activities | ||
| Net profit | -185,522,860.86 | -509,400,606.15 |
| Add: credit impairment loss | 1,711,964.42 | |
| Provision for asset impairment | 8,946,433.92 | 327,479,010.92 |
| Depreciation and amortization of investment property | 175,707.60 | 196,137.60 |
| Depreciation of fixed assets | 31,258,029.09 | 45,339,600.41 |
| Depreciation of right-of-use assets | 8,614,396.47 | |
| Amortization of intangible assets | 701,403.22 | 755,241.12 |
| Amortization of long-term deferred expenses | 497,331.12 | 441,620.60 |
| Loss from disposing fixed assets, intangible assets and other long-term assets (income is listed with “-“) | -291,985.88 | -974,699.74 |
| Loss on retirement of fixed assets (gain is listed with “-”) | 1,463,939.59 | 188,716.00 |
| Loss from changes of fair value (income is listed with “-“) | ||
| Financial expense (gain is listed with “-”) | 40,218,036.98 | 30,629,953.77 |
| Investment loss (gain is listed with “-”) | -70,717,321.61 | -45,981,085.44 |
| Decrease of deferred income tax asset( (increase is listed with “-”) | -63,080.11 | 1,096,763.31 |
| Increase of deferred income tax asset( (decrease is listed with “-”) | ||
| Decrease of inventory (increase is listed with “-”) | 5,500,517.27 | -205,923.56 |
| Decrease of operating receivable accounts (increase is listed with “-”) | 289,715,229.11 | 30,907,257.52 |
| Increase of operating payable accounts (decrease is listed with “-”) | 74,960,661.93 | 80,269,711.57 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page68
| Supplementary information | Amount for the current period | Amount for the previous period |
| Others | ||
| Net cash flows from operating activities | 207,168,402.26 | -39,258,302.07 |
| 2. Material investment and financing not involved in cash flow | ||
| Debt capitalization | ||
| Convertible company bond due within one year | ||
| Fixed assets acquired under finance leases | ||
| 3. Net change of cash and cash equivalents: | ||
| Ending balance of cash | 648,021,672.06 | 456,751,614.75 |
| Less: beginning balance of cash | 456,751,614.75 | 397,101,272.21 |
| Add: ending balance of cash equivalents | 232,853,018.84 | |
| Less: beginning balance of cash equivalents | 232,853,018.84 | 367,500,000.00 |
| Net increase in cash and cash equivalents | -41,582,961.53 | -74,996,638.62 |
2. Composition of cash and cash equivalent
| Item | Ending balance | Balance at the end of last year |
| I. Cash | 648,021,672.06 | 456,751,614.75 |
| Including: cash on hand | 37,698.63 | 35,963.95 |
| Bank savings available for payment needed | 647,983,965.23 | 456,715,650.80 |
| Other cash and cash equivalents available for payment at any time | 8.20 | |
| Account due from central bank available for payment | ||
| Amount due from banks | ||
| Amount call loans to banks | ||
| II. Cash equivalents | 232,853,018.84 | |
| Including: bond investments due within three months | ||
| III. Balance of ending cash and cash equivalents | 648,021,672.06 | 689,604,633.59 |
| Including: Cash and cash equivalent of the parent company or subsidiaries with use restricted |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page69
(LV)Assets of ownership or use right restricted
| Item | Ending book value | Reason for restriction |
| Cash and cash equivalents | 27,474,594.34 | Margin of bank acceptance bills |
| Total | 27,474,594.34 |
(LVI)Monetary items in foreign currency
1. Monetary items in foreign currency
| Item | Ending balance in foreign currency | Exchange rate of conversion | Ending balance of RMB converted |
| Cash and cash equivalents | |||
| Including: USD | 835,024.28 | 6.96460 | 5,815,610.10 |
| Euro | 1,017.87 | 7.42290 | 7,555.55 |
| HKD | 281,964.04 | 0.89327 | 251,870.02 |
| SGD | 3,833.03 | 5.18310 | 19,866.98 |
(LVII)Government subsidies
1. Asset-related government subsidy
| Category | Amount | Items presented in the balance sheet | Amount included in current profits/losses or loss resulting from related costs off-setting | Item of the amount included in current profits/losses or loss resulting from related costs off-setting | |
| Amount for the current period | Amount for the previous period | ||||
| Subsidies for transformation of low nitrogen projects | 43,032,780.00 | Deferred income | 488,621.77 | 544,168.22 | Other income |
| Support fund of recycling economy for sludge drying | 11,750,000.00 | Deferred income | 647,002.92 | 647,002.92 | Other income |
| Treasury subsidies for sludge drying | 5,100,000.00 | Deferred income | 255,000.00 | 255,000.00 | Other income |
| Subsidy for quality promotion of the air environment in Shenzhen | 70,977,273.00 | Deferred income | 4,731,818.16 | 4,731,818.16 | Other income |
| Special funds for energy | 1,530,000.00 | Deferred income | 114,037.32 | 114,037.32 | Other income |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page70
| Category | Amount | Items presented in the balance sheet | Amount included in current profits/losses or loss resulting from related costs off-setting | Item of the amount included in current profits/losses or loss resulting from related costs off-setting | |
| Amount for the current period | Amount for the previous period | ||||
| conservation and emission reduction | |||||
| Funding scheme for the improvement of motor energy efficiency | 518,400.00 | Deferred income | 34,560.00 | 34,560.00 | Other income |
| Funding for technical transformation investment project in 2021-2022 | 670,000.00 | Deferred income | 53,333.32 | 18,611.10 | Other income |
| Information construction | 520,000.00 | Deferred income | 25,490.12 | Other income | |
| Total | 134,098,453.00 | 6,324,373.49 | 6,370,687.84 | ||
2. Income-related government subsidy
| Category | Amount | Amount included in current profits/losses or loss resulting from related costs off-setting | Item of the amount included in current profits/losses or loss resulting from related costs off-setting | |
| Amount for the current period | Amount for the previous period | |||
| National High Multiplication Plan | 500,000.00 | 500,000.00 | 400,000.00 | Other income |
| Special funds for development of independent innovation industries | 246,100.00 | 246,100.00 | 100,000.00 | Other income |
| Individual tax refund | 299,897.34 | 299,897.34 | 195,684.76 | Other income |
| Lump-sum subsidies for training of workers on post | 128,000.00 | 128,000.00 | Other income | |
| Subsidies for pilot demonstration of industrial “carbon peak” work | 570,000.00 | 570,000.00 | Other income | |
| Support funds for housing of listed company | 1,000,000.00 | 1,000,000.00 | Other income | |
| Social security subsidies | 83,490.91 | 83,490.91 | Other income | |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page71
| Category | Amount | Amount included in current profits/losses or loss resulting from related costs off-setting | Item of the amount included in current profits/losses or loss resulting from related costs off-setting | |
| Amount for the current period | Amount for the previous period | |||
| Subsidies for stabilizing posts | 153,231.98 | 153,231.98 | 7,964.00 | Other income |
| Science and technology innovation voucher | 28,000.00 | 28,000.00 | Other income | |
| Qianhai Epidemic Prevention Support Special Fund | 39,600.00 | 39,600.00 | Non-operating income | |
| Financial subsidies for electricity generation of gas-fired power generation enterprises | 16,322,000.00 | Operating costs | ||
| Total | 3,048,320.23 | 3,048,320.23 | 17,025,648.76 | |
V. Changes in the scope of consolidationNo change in the Company included in the consolidated statement scope during the reportingperiod.VII Equity in other entity(I) Equity in subsidiaries
1. Composition of the Group
| Name of subsidiary | Main operation place | Shareholding ratio (%) | Method of acquisition | |
| Direct | Indirect | |||
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | Zhongshan | 55.00 | 25.00 | Establishment |
| Shenzhen Shennandian Turbine Engineering Technology Co., Ltd. | Shenzhen | 60.00 | 40.00 | Establishment |
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | Shenzhen | 70.00 | 30.00 | Establishment |
| Shenzhen Server Petrochemical Supplying Co., Ltd. | Shenzhen | 50.00 | Establishment | |
| Shenzhen New Power Industrial Co., Ltd. | Shenzhen | 75.00 | 25.00 | Establishment |
| Shen Nan Energy (Singapore) Co., Ltd. | Singapore | 100.00 | Establishment | |
| Hong Kong Syndisome Co., Ltd. | Hong Kong | 100.00 | Establishment | |
| Zhongshan Shennandian Storage Co., Ltd. | Zhongshan | 80.00 | Establishment | |
| Zhuhai Hengqin Zhuozhi Investment Partnership (limited partnership) | Zhuhai | 99.96 | Establishment | |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page72
ii. Important non-wholly-owned subsidiary
| Name of subsidiary | Shareholding ratio of minority shareholders at % | Profit and loss attributable to minority shareholders in the current period | Balance of minority equity at the end of the period |
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | 20.00 | -22,278,825.83 | -100,159,669.95 |
i.
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page73
3. Principal financial information of important non-wholly-owned subsidiaries
| Name of subsidiary | Ending Balance /Yuan | Balance at the end of last year/Yuan | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. ("Zhongshan Electric Power") | 43,407,571.96 | 216,418,067.18 | 259,825,639.14 | 755,501,588.98 | 5,122,399.93 | 760,623,988.91 | 32,544,636.55 | 231,154,252.88 | 263,698,889.43 | 647,836,819.17 | 5,266,290.86 | 653,103,110.03 |
| Name of subsidiary | Current amount/Yuan | Amount for the previous period/Yuan | ||||||
| Operating income | Net profit | Total comprehensive income | Cash flow from operating activities | Operating income | Net profit | Total comprehensive income | Cash flow from operating activities | |
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. ("Zhongshan Electric Power") | 18,619,522.44 | -111,394,129.17 | -111,394,129.17 | 69,486,856.28 | 124,646,010.22 | -330,756,155.47 | -330,756,155.47 | -7,574,929.39 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page74
(II) Equity in joint venture arrangements or associates
1. Important joint ventures or associates
| Name of joint ventures or associates | Main operation place | Main business activities | Shareholding ratio (%) | Accounting treatment method on investment in joint ventures or associates | |
| Direct | Indirect | ||||
| Huidong Server Harbor Comprehensive Development Company | Renshan Town, Huidong County | Wharf operation | 40.00 | Equity method | |
| Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. | Yixing, Jiangsu | Environment Protection | 9.935 | Equity method | |
2. Main financial information of significant joint ventures or associates
| Ending balance /Current amount | Opening balance/amount for the previous period | |||
| Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. | Huidong Server | Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. | Huidong Server | |
| Total book value of investment | 79,082,076.44 | 4,414,021.80 | 6,986,655.19 | |
| Total numbers measured by share-holding ratio | ||||
| - Net profit | 6,208,396.44 | -2,572,633.39 | -1,906,753.67 | |
| - Other comprehensive income | ||||
| - Total comprehensive income | 6,208,396.44 | -2,572,633.39 | -1,906,753.67 | |
VIII Risks relating to financial instrumentsThe Company's main financial instruments include equity investment, notes receivable, long-termand short-term loans, accounts receivable, accounts payable, other payable, etc., see details of eachfinancial instrument in related items of this annotation III (10). The risks associated with thesefinancial instruments and the risk management policies adopted by the Company to reduce theserisks are described as below. The management of the Company manages and monitors these riskexposures 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 riskvariable on the current profit and loss or the shareholders' equity. Since any risk variable rarelychanges in isolation, and the correlation existing among the variables shall have a significant
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page75
effect on the final amount of changes about a certain risk variable, therefore, the followingproceeds by assuming that the change in each variable is independent.(I)Credit riskCredit risk refers to the risk that one party to a financial instrument fails to perform its obligations,causing the other party to suffer financial losses. The Company is mainly faced with customercredit risk caused by credit sales. Before signing a new contract, the Company will evaluate thecredit risk of the new customer, including the external credit rating and, in some cases, the bankcredit certificate (when this information is available). The company has set a credit limit for eachcustomer, which is the maximum amount without additional approval.The company ensures that the Company's overall credit risk is within a controllable range throughquarterly monitoring of existing customer credit ratings and monthly review of accountsreceivable aging analysis. When monitoring the credit risk of customers, they are groupedaccording to their credit characteristics. Customers rated as “high risk” will be placed on therestricted customer list, and only with additional approval, the Company can sell them on credit inthe future, otherwise they must be required to pay the corresponding amount in advance.(II)Market riskMarket risks of financial instruments refers to the risks that the fair value or future cash flow ofsuch financial instruments will fluctuate due to the changes in market prices, including FX risks,interest rate risks and other price risks.
(1) Interest rate risk
The Company's cash flow change risk of financial instruments arising from interest rate change ismainly related to the floating interest rate bank loans.Sensitivity analysis of interest rate risk:
The sensitivity analysis of interest rate risk is based on the following assumptions:
Changes in market interest rates affect the interest income or expense of financial instruments withvariable interest rate; for financial instruments with fixed rate by fair value measurement, thechanges in market interest rates only affect their interest income or expense; for derivativefinancial instruments designated as hedging instruments, the changes in market interest rates affecttheir fair value, and all interest rate hedging prediction is highly effective; The fair value changesof derivative financial instruments and other financial assets and liabilities are calculated using thediscounted cash flow method at the market interest rate on the balance sheet date. the changes infair value of derivative financial instruments and other financial assets and liabilities arecalculated by using the cash flow discount method at the market interest rate on the balance sheetdate.As of December 31, 2022, the Company's bank loan interest calculated at floating interest ratesamounted to 7,305,058.78 Yuan. On the basis of the above assumptions and with other variablesunchanged, it is assumed that the pre-tax impact of a 5% change in interest rate on current profitand loss 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 | |
| Increase by 5% | -365,252.94 | -365,252.94 | -242,491.45 | -242,491.45 |
| Decrease by 5% | 365,252.94 | 365,252.94 | 242,491.45 | 242,491.45 |
(2) FX risks
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page76
Foreign exchange risk refers to the risk of losses arising from the exchange rate fluctuation. Thecompany's exposure to foreign exchange risk is mainly related to US dollars. On Dec. 31, 2021,the Company's assets and liabilities were RMB balances, except for Note V (56) foreign currencymonetary item balances. The foreign exchange risk arising from the assets and liabilities of suchforeign currency balances may have an impact on the Company's operating results.(III) Liquidity riskLiquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation ofsettlement by means of cash or other financial assets. The Company's policy is to ensure that it hassufficient cash to repay the debts due. Liquidity risk is centrally controlled by the Company'sfinancial department. The financial department monitors cash balances, marketable securities thatcan be cashed at any time, and rolling forecasts of cash flows in the next 12 months to ensure thatthe Company has sufficient funds to repay debts under all reasonable forecasts.IX Related parties and related transaction(I)Parent company of the CompanyThe shareholding ratio of any shareholder of the Company has not reached 50%, and cannot forma control relationship over the Company through other means. Therefore, the Company does nothave a parent company.(II)Subsidiaries of the CompanyFor details of the Company's subsidiaries, please refer to “VII. (1) Equity in Subsidiaries”.(III)Joint ventures and associates of the CompanyFor details of significant joint ventures or associates of the Company, please refer to “VII. (2)Equity in Joint Venture Arrangements or Associates”.(IV) Other related parties
| Names of other related parties | Relationship between other related parties and the Company |
| Shenzhen Energy Group Co., Ltd. (hereinafter referred to as “Energy Group”) | Legal person holding more than 5% of the shares of the Company |
| Shenzhen Guangju Industrial Co., Ltd. | Legal person holding more than 5% of the shares of the Company |
| HONG KONG NAM HOI (INTERNATIONAL) LTD. | Legal person holding more than 5% of the shares of the Company |
| Shenzhen Capital Holdings Co., Ltd. | Legal person holding more than 5% of the shares of the Company indirectly through the Energy Group |
| Directors, supervisors and senior management of the Company | Key manager |
(V) Related transaction
1.Remuneration of key officers
| Item | Amount for the current period | Amount for the previous period |
| Remuneration of directors and supervisors | 7,531,900 Yuan | 6,373,300 Yuan |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page77
(VI) Receivables/payables of related parties1 Receivables
| Project name | Related parties | Ending book balance | Book balance at the end of last year |
| Other receivables | |||
| Huidong Server | 14,740,501.44 | 14,740,501.44 | |
| Huidong Server managed account | 900,414.01 | 1,014,945.19 | |
| Total | 15,640,915.45 | 15,755,446.63 |
X Commitments and contingencies(I) Significant commitmentsAs of December 31, 2021, the Company has no commitments that need to be disclosed.(II) ContingenciesAs of December 31, 2021, the Company has no contingencies that need to be disclosed.XI Events after the balance sheet dateThe Company has no subsequent events required to be disclosed as of the reporting date.(I) Important non-adjusting mattersNo(II) Note of other events occurring after the balance sheet dateNo(III) Segment information
1. Determining basis and accounting policies of the report divisionsAccording to the Company’s internal organizational structure, management requirements andinternal reporting system, the Company’s operating business is divided into three businessdivisions, i.e. power supply and heating, fuel trading, and other businesses. The Company’smanagement regularly evaluates the business performance of these divisions in order to determinethe allocation of resources and evaluate the performance.Divisional reporting information is disclosed in accordance with the accounting policies andmeasurement standards adopted when each division reports to the management. Thesemeasurement bases are consistent with the accounting and measurement bases used whenpreparing financial statements.
2. Financial information of the reportable segment
| Item | Electricity generation segment | Electricity engineering segment | Other segments | Inter-segment offset | Total |
| Operating income | 651,131,238.20 | 43,498,035.97 | 1,227,142.8 | 1,628,759.73 | 694,227,657.28 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page78
| Item | Electricity generation segment | Electricity engineering segment | Other segments | Inter-segment offset | Total |
| 4 | |||||
| Operating costs | 779,954,068.91 | 25,880,076.93 | 195,539.80 | 1,350,362.16 | 804,679,323.48 |
| Total assets | 1,962,695,493.81 | 85,525,126.72 | 383,285,372.12 | -174,710,353.34 | 2,606,216,345.99 |
| Total liabilities | 1,341,253,266.39 | 46,447,820.60 | 37,484,272.06 | 211,788,067.64 | 1,213,397,291.41 |
XII Notes to the main items of the financial statements of the parent company(I)Accounts receivable
1. Accounts receivable disclosed by aging
| Aging | Ending balance | Balance at the end of last year |
| Within 1 year | 47,995,982.82 | 35,966,056.15 |
| Over 3 years | ||
| Subtotal | 47,995,982.82 | 35,966,056.15 |
| Less: provision for bad debts | ||
| Total | 47,995,982.82 | 35,966,056.15 |
2. Accounts receivable disclosed by provision method for bad debts by category
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Accrual proportion (%) | ||
| Accounts receivable with single provision for bad debts | |||||
| Provision for bad debts by combination of risk characteristics | 47,995,982.82 | 100.00 | 47,995,982.82 | ||
| Including: low-risk portfolio | 47,995,982.82 | 100.00 | 47,995,982.82 | ||
| Total | 47,995,982.82 | 100.00 | 47,995,982.82 | ||
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page79
| Category | Balance at the end of last year | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Accrual proportion (%) | ||
| Accounts receivable with single provision for bad debts | |||||
| Provision for bad debts by combination of risk characteristics | 35,966,056.15 | 100.00 | 35,966,056.15 | ||
| Including: low-risk portfolio | 35,966,056.15 | 100.00 | 35,966,056.15 | ||
| Total | 35,966,056.15 | 100.00 | 35,966,056.15 | ||
Provision for bad debts on a portfolio basis:
| Name | Ending balance | ||
| Accounts receivable | Provision for bad debts | Accrual proportion (%) | |
| Electricity charges receivable | 47,995,982.82 | ||
| Total | 47,995,982.82 | ||
3. Top 5 receivables at ending balance by arrears party
| Name of organization | Book balance | Proportion in the balance of accounts receivable (%) | Balance of provision for bad debts at the end of the year |
| 1st place | 47,995,982.82 | 100.00 | |
| Total | 47,995,982.82 | 100.00 |
(II) Other receivables
| Item | Ending balance | Balance at the end of last year |
| Interest receivable |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page80
| Item | Ending balance | Balance at the end of last year |
| Dividends receivable | ||
| Other accounts receivable | 851,189,111.89 | 618,436,063.60 |
| Total | 851,189,111.89 | 618,436,063.60 |
1. Other accounts receivable
(1) Disclosure by aging
| Aging | Ending balance | Balance at the end of last year |
| Within 1 year | 452,449,473.00 | 98,550,452.19 |
| 1-2 years | 94,733,821.40 | 64,095.20 |
| 2 to 3 years | 19,926.83 | 35,844,839.81 |
| Over 3 years | 331,315,534.10 | 511,306,319.84 |
| Subtotal | 878,518,755.33 | 645,765,707.04 |
| Less: provision for bad debts | 27,329,643.44 | 27,329,643.44 |
| Total | 851,189,111.89 | 618,436,063.60 |
(2) Disclosure by category
| Category | Ending balance | ||||
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Accrual proportion (%) | ||
| Accounts receivable with single provision for bad debts | 27,617,758.22 | 3.14 | 27,329,643.44 | 98.96 | 288,114.78 |
| Provision for bad debts by combination of risk characteristics | 850,900,997.11 | 96.86 | 850,900,997.11 | ||
| Including: low-risk portfolio | 850,900,997.11 | 96.86 | 850,900,997.11 | ||
| Total | 878,518,755.33 | 100.00 | 27,329,643.44 | 3.11 | 851,189,111.89 |
| Category | Balance at the end of last year |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page81
| Book balance | Provision for bad debts | Book value | |||
| Amount | Ratio (%) | Amount | Accrual proportion (%) | ||
| Accounts receivable with single provision for bad debts | 27,965,391.68 | 4.33 | 27,329,643.44 | 97.73 | 635,748.24 |
| Provision for bad debts by combination of risk characteristics | 617,800,315.36 | 95.67 | 617,800,315.36 | ||
| Including: low-risk portfolio | 617,800,315.36 | 95.67 | 617,800,315.36 | ||
| Total | 645,765,707.04 | 100.00 | 27,329,643.44 | 4.23 | 618,436,063.60 |
Provision for bad debts on an individual basis:
| Name | Ending balance | |||
| Book balance | Provision for bad debts | Accrual proportion (%) | Causes | |
| Individual income tax | 2,470,039.76 | 2,470,039.76 | 100.00 | Uncollectible as excepted |
| Dormitory amount receivable | 1,736,004.16 | 1,736,004.16 | 100.00 | Uncollectible as excepted |
| Huiyang Kangtai Industrial Company | 14,311,626.70 | 14,311,626.70 | 100.00 | Uncollectible as excepted |
| Beneficial fund dividends (accounts receivable from individuals) | 7,498,997.87 | 7,498,997.87 | 100.00 | Uncollectible as excepted |
| Others | 1,601,089.73 | 1,312,974.95 | 82.01 | Uncollectible as excepted |
| Total | 27,617,758.22 | 27,329,643.44 | 98.96 | |
(3) Accrual of provision for bad debts
| Provision for bad debts | 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) | ||
| Beginning balance | 27,329,643.44 | 27,329,643.44 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page82
| Provision for bad debts | 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) | ||
| Beginning balance in the current period | ||||
| -- turn to Phase II | ||||
| - turn to Phase III | ||||
| - return to Phase II | ||||
| - return to Phase I | ||||
| Current accrual | ||||
| Current return | ||||
| Rewrite in the current period | ||||
| Write-off in the current period | ||||
| Other changes | ||||
| Ending balance | 27,329,643.44 | 27,329,643.44 |
(5) Classification by nature of payment
| Nature of payment | Ending book balance | Book balance at the end of last year |
| Transactions between related parties | 850,503,678.18 | 616,401,741.49 |
| Dormitory amount receivable | 1,736,004.16 | 2,083,698.16 |
| Deposits receivable | 1,601,089.73 | 1,750,498.58 |
| Personal receivables | 7,615,145.44 | 8,567,330.57 |
| Others | 17,062,837.82 | 16,962,438.24 |
| Subtotal | 878,518,755.33 | 645,765,707.04 |
| Less: provision for bad debts | 27,329,643.44 | 27,329,643.44 |
| Total | 851,189,111.89 | 618,436,063.60 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements of 2022
Notes to Financial Statement Page83
(III) Long-term equity investments
| Item | Ending balance | Balance at the end of last year | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Investment in subsidiaries | 718,091,322.09 | 445,002,245.26 | 273,089,076.83 | 716,893,717.00 | 429,592,447.19 | 287,301,269.81 |
| Investments in associates and joint ventures | 79,082,076.44 | 79,082,076.44 | ||||
| Total | 797,173,398.53 | 445,002,245.26 | 352,171,153.27 | 716,893,717.00 | 429,592,447.19 | 287,301,269.81 |
1.Investment in subsidiaries
| Investees | Balance at the end of last year | Increase in the current period | Decrease in the current period | Ending balance | Provision for impairment in the current period | Ending balance of provision for impairment |
| Shenzhen Server Petrochemical Supplying Co., Ltd. | 26,650,000.00 | 26,650,000.00 | ||||
| Shen Nan Energy (Singapore) Co., Ltd. | 6,703,800.00 | 6,703,800.00 | ||||
| Shenzhen New Power Industrial Co., Ltd. | 71,270,000.00 | 71,270,000.00 | 13,709,556.49 | 13,709,556.49 | ||
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | 410,740,000.00 | 410,740,000.00 | 410,740,000.00 | |||
| Shenzhen Shennandian Turbine Engineering Technology Co., Ltd. | 6,000,000.00 | 6,000,000.00 | ||||
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | 55,300,000.00 | 55,300,000.00 | 1,700,241.58 | 20,552,688.77 | ||
| Zhuhai Hengqin Zhuozhi Investment Partnership (limited partnership) | 140,229,917.00 | 1,197,605.09 | 141,427,522.09 | |||
| Total | 716,893,717.00 | 1,197,605.09 | 718,091,322.09 | 15,409,798.07 | 445,002,245.26 |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements off 2022
Notes to Financial Statement Page84
2. Investments in associates and joint ventures
| Investees | Balance at the end of last year | Increase or decrease in the current period | Ending balance | Ending balance of provision for impairment | |||||||
| Additional investment | Reduced investment | Investment profit and loss recognized by equity method | Adjustment of other comprehensive income | Other changes in equity | Cash dividends or profits declared and distributed | Provision for impairment | Others | ||||
| 1. Associates | |||||||||||
| Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. | 6,208,396.44 | 72,873,680.00 | 79,082,076.44 | ||||||||
| Subtotal | 6,208,396.44 | 72,873,680.00 | 79,082,076.44 | ||||||||
| Total | 6,208,396.44 | 72,873,680.00 | 79,082,076.44 | ||||||||
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements off 2022
(IV)Operating income and operating costs
| Item | Amount for the current period | Amount for the previous period | ||
| Income | Cost | Income | Cost | |
| Main business | 331,675,472.61 | 454,500,441.17 | 304,694,251.31 | 409,069,566.58 |
| Other | 91,408,429.32 | 63,394.30 | 88,487,552.28 | 491,345.55 |
| Total | 423,083,901.93 | 454,563,835.47 | 393,181,803.59 | 409,560,912.13 |
(V) Investment income
| Item | Amount for the current period | Amount for the previous period |
| Long-term equity investment income by equity | 6,208,396.44 | |
| Investment income from financial assets held for trading during the holding period | 57,851,532.85 | 47,412,260.98 |
| Dividend income obtained during the holding period of other equity instrument investments | 453,587.35 | 252,016.49 |
| Dividends on long-term equity investments | 8,397,001.02 | |
| Total | 72,910,517.66 | 47,664,277.47 |
XIII Supplementary information(I)Statement of current non-recurring profit and loss
| Item | Amount | Description |
| Profit and loss from disposal of non-current assets | -1,171,953.71 | |
| Tax refund or mitigate due to examination-and-approval beyond power or without official approval document | ||
| Governmental subsidy reckoned into current profits/losses (not including the subsidy enjoyed in quota or ration, which are closely relevant to enterprise’s normal business | 9,333,093.72 | |
| Capital occupancy expense, collected from non-financial enterprises and recorded in current profits and losses | ||
| Income from the exceeding part between investment cost of the Company paid for obtaining subsidiaries, associates and joint-ventures and recognizable net assets fair value attributable to the Company when acquiring the investment | ||
| Profits and losses from exchange of non-monetary assets | ||
| Profits and losses from assets under trusted investment or management |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements off 2022
| Item | Amount | Description |
| Various provision for impairment of assets withdrew due to force majeure, such as natural disaster | ||
| Gains/losses on debt restructuring | ||
| Enterprise restructuring costs, such as expenses for staff placement, integration costs, etc. | ||
| Profits and losses of the part arising from transaction in which price is not fair and exceeding fair value | ||
| Current net profits and losses occurred from period-begin to combination day by subsidiaries resulting from business combination under same control | ||
| Gains/losses arising from contingency that is not related to the normal operation business of the Company | ||
| Gains/losses of fair value changes arising from holding of the trading financial asset, trading financial liability and investment earnings obtained from disposing the trading financial asset, trading financial liability, and financial assets available for sale, except for the effective hedging business related to normal operation of the Company | 58,227,971.21 | |
| Return of provision of impairment of account receivable which are treated with separate depreciation test | ||
| Profits and losses obtained from external trusted loans | ||
| Profits and losses arising from change of fair value of investment real estate whose follow-up measurement are conducted according to fair value pattern | ||
| Impact on current profits and losses after an one-time adjustment according to requirements of laws and regulations regarding to taxation and accounting | ||
| Trust fee obtained from trust operation | ||
| Other non-operating income and expenses other than those mentioned above | -635,065.42 | |
| Other profit and loss that meet the definition of non-recurring profit and loss | ||
| Subtotal | 65,754,045.80 | |
| Less：impact on income tax | ||
| Less: impact on minority equity | -50,287.24 | |
| Total | 65,804,333.04 |
(II) ROE and EPS
| Profit during the reporting period | Weighted | EPS (Yuan) |
Shenzhen Nanshan Power Co., Ltd.Notes to Financial Statements off 2022
| average ROE (%) | Basic earnings per share | Diluted earnings per share | |
| Net profit attributable to shareholders of the listed company | -10.43 | -0.2657 | -0.2657 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring profits and losses | -14.72 | -0.3749 | -0.3749 |
Shenzhen Nanshan Power Co., Ltd.
(Official Seal)April 4, 2023