Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Ticker: 000037, 200037 Stock name: Shenzhen Nanshan Power A, Shenzhen Nanshan Power B Announcement No.: 2024-019
Shenzhen Nanshan Power Co., Ltd.
2023 Annual Report
April 2024
1
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
2023 Annual Report
Section I Important, contents and definitions
The Board of Directors, the Board of Supervisors, directors, supervisors and senior officers guarantee
that the contents of the annual report are true, accurate and complete, without any false records,
misleading statements or major omissions, and shall bear individual and joint legal liability.
Kong Guoliang, the Principal, Chen Yuhui, the Chief Accountant, Zhang Xiaoyin, the Chief Financial
Officer, and Lin Xiaojia, Head of the Finance Department (Finance Head), guarantee that the financial
reports in the annual report are true, accurate and complete.
Except for the following directors, all other directors attended in person the meeting of the Board of
Directors to review this annual report
Name of director who Reasons for not
Position of director who Name of the person
was not present in attending the meeting in
was not present in entrusted
person person
person
Sun Huirong Director Work related reasons Huang Qing
Huang Xiqin Independent director Work related reasons Du Wei
Chen Zetong Independent director Work related reasons Du Wei
The Company plans not to distribute cash dividends, give away bonus shares, or increase share capital by
capital reserves.
If there are forward-looking statements in the annual report involving the company's future development
strategy, business plans, etc., they do not constitute the Company's substantive commitment to investors.
Investors are advised to maintain adequate risk awareness and understand the differences between plans,
forecasts and commitments, and pay attention to investment risks.
The annual report is prepared in Chinese and English respectively. If there is any ambiguity in the
understanding of the two texts, the Chinese text shall prevail. Investors are requested to read the full text
of the annual report carefully.
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Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Table of contents
Section I Important, contents and definitions ...................................................................................................... 2
Section II Company profile and key financial indicators .................................................................................... 6
Section III Management discussion and analysis................................................................................................. 12
Section IV Corporate governance ......................................................................................................................... 48
Section V Environmental and social responsibilities ........................................................................................... 78
Section VI Important matters................................................................................................................................ 82
Section VII Changes in shares and shareholders ................................................................................................. 89
Section VIII Preferred shares ................................................................................................................................ 98
Section IX Bonds..................................................................................................................................................... 99
Section X Financial report ..................................................................................................................................... 100
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Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
List of documents for inspection
I. The original 2023 annual report signed by the Company's legal representatives.
II. Financial statements signed and stamped by the Company's Principal, Chief Accountant, Chief Financial
Officer and Head of the Finance Department (Finance Head).
III. The original audit report stamped by the accounting firm and signed and stamped by the certified public
accountant.
IV. All the Company's original documents and announcements publicly disclosed in designated media during
the reporting period.
V. Location for inspection: the office of Board of Directors of the Company.
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Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Interpretation
Item Refer to Content
Company, the Company, Shenzhen
Nanshan Power and listed Refer to Shenzhen Nanshan Power Co., Ltd.
company
CSRC Refer to China Securities Regulatory Commission
Shenzhen State-owned Assets State-owned Assets Supervision and
Supervision and Administration Refer to Administration Commission of Shenzhen
Commission People's Government
Shenzhen Nanshan Power Shenzhen Nanshan Power (Zhongshan) Power
Refer to
Zhongshan Company Co., Ltd.
Shenzhen Nanshan Power Shenzhen Nanshan Power Gas Turbine
Refer to
Engineering Company Engineering Technology (Shenzhen) Co., Ltd.
Shenzhen Nanshan Power
Shenzhen Nanshan Power Environmental
Environmental Protection Refer to
Protection (Shenzhen) Co., Ltd.
Company
Xiefu Company Refer to Shenzhen Xiefu Energy Co., Ltd.
New Power Company Refer to Shenzhen New Power Industrial Co., Ltd.
Shenzhen Nanshan Power Co., Ltd. Nanshan
Nanshan Power Plant Refer to
Power Plant
Shenzhen Nanshan Power (Zhongshan) Power
Zhongshan Nanlang Power Plant Refer to
Co., Ltd. Zhongshan Nanlang Power Plant
Company Law Refer to Company Law of the People's Republic of China
Securities Law Refer to Securities Law of the People's Republic of China
Rules Governing the Listing of Stocks on
Stock Listing Rules Refer to
Shenzhen Stock Exchange
Articles of Association of Shenzhen Nanshan
Articles of Association Refer to
Power Co., Ltd.
Except for the specially described currency units,
RMB, RMB 10,000, RMB
Refer to the remaining currency units are RMB, RMB
100,000,000
10,000, and RMB 100,000,000
Reporting period Refer to January 1, 2023 to December 31, 2023
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Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Section II Company profile and key financial indicators
I. Company information
Shenzhen Nanshan Power
Stock name 000037、200037 Ticker A, Shenzhen Nanshan
Power B
Stock exchange Shenzhen Stock Exchange
Name in Chinese 深圳南山热电股份有限公司
Abbreviation in Chinese 深南电
Name in English (if any) Shenzhen Nanshan Power Co., Ltd.
Registered address No. 2097, Yueliangwan Avenue, Nanshan District, Shenzhen, Guangdong Province
Postal code of registered
518054
address
Historical changes of
None
registered address
16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, Guangdong
Office address
Province
Postal code of office
518053
address
Website http://www.nsrd.com.cn
E-mail public@nspower.com.cn; investor@nspower.com.cn
II. Contact person and contact details
Secretary of the Board of Directors Securities representative
Name Zou Yi
16/F-17/F, Hantang Building, OCT,
Contact address Nanshan District, Shenzhen,
Guangdong Province
Tel. 0755-26003611
Fax 0755-26003684
E-mail investor@nspower.com.cn
III. Information disclosure and preparation location
The stock exchange website where the Company
Shenzhen Stock Exchange: http://www.szse.cn/
discloses its annual report
Name and website of the media where the Company Securities Times: http://www.stcn.com/, CNINFO:
discloses its annual report http://www.cninfo.com.cn/
Office of the Board of Directors, 17/F, Hantang
Preparation location of annual report Building, OCT, Nanshan District, Shenzhen,
Guangdong Province
IV. Changes in registration
Unified social credit code 91440300618815121H
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Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Changes in the Company's main business since its
None
listing (if any)
Previous changes in controlling shareholders (if any) No controlling shareholder
V. Other relevant information
The accounting firm hired by the Company
Name of the accounting firm Lixinzhonglian CPAS (Special General Partnership)
1-1-2205-1, North District, Financial and Trade
Office address Center, No. 6865 Yazhou Road, Tianjin Pilot Free
Trade Zone (Dongjiang Bonded Port Zone)
Name of signatory accountant Cao Wei and Zou Yang
The sponsor institution hired by the Company to perform continuous supervision responsibilities during the
reporting period
□Applicable Not applicable
Financial consultant hired by the Company to perform continuous supervision duties during the reporting period
□Applicable Not applicable
VI. Key accounting data and financial indicators
Whether the Company need to retroactively adjust or restate the previous accounting data
□Yes No
Change compared
2023 2022 with the previous 2021
year
Operating revenue
589,780,190.71 694,227,657.28 -15.05% 757,175,743.41
(RMB)
Net profit
attributable to
shareholders of 4,158,797.10 -160,163,240.67 102.60% -439,448,712.13
listed companies
(RMB)
Net profit
attributable to
shareholders of
listed companies -70,789,007.91 -225,967,573.71 68.67% -514,142,213.75
after deducting non-
recurring gains and
losses (RMB)
Net cash flows
generated from -100,371,976.92 207,168,402.26 -148.45% -39,258,302.07
operating activities
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Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
(RMB)
Basic earnings per
0.0069 -0.2657 102.60% -0.7291
share (RMB/share)
Diluted earnings
per share 0.0069 -0.2657 102.60% -0.7291
(RMB/share)
Weighted average
+10.72 percentage
rate of return on net 0.29% -10.43% -23.95%
points
assets
Change compared
End of 2023 End of 2022 with the end of the End of 2021
previous year
Total assets (RMB) 2,049,365,388.69 2,606,216,345.99 -21.37% 2,790,002,824.41
Net assets
attributable to
shareholders of 1,459,288,691.94 1,455,129,894.84 0.29% 1,615,293,135.51
listed companies
(RMB)
The Company's net profit before and after deducting non-recurring gains and losses in the past three fiscal years,
whichever is lower, is negative; meanwhile, the audit report for the most recent year shows that there is
uncertainty in the Company's going-concern ability
□Yes No
The lower of net profit before and after deducting non-recurring profit or loss is negative
Yes □ No
Item 2023 2022 Remark
Mainly received from
Operating revenue power production and
589,780,190.71 694,227,657.28
(RMB) sale and revenue from
integrated energy services
Amount after deduction
Mainly received from
of operating revenue 1,409,620.51 1,611,967.02
house lease revenue
(RMB)
Amount after deduction
Operating revenue after
of operating revenue 588,370,570.20 692,615,690.26
deduction of house rent
(RMB)
VII. Differences in accounting data under domestic and foreign accounting standards
1. Differences in net profit and net assets in financial reports disclosed in accordance with both
international and Chinese accounting standards
□Applicable Not applicable
There was no difference between net profit and net assets in the financial reports disclosed in accordance with
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Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
both international and Chinese accounting standards during the reporting period of the Company.
2. Differences in net profit and net assets in financial reports disclosed in accordance with both
international and Chinese accounting standards
□Applicable Not applicable
There was no difference between net profit and net assets in the financial reports disclosed in accordance with
both international and Chinese accounting standards during the reporting period of the Company.
VIII. Key financial indicators by quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 111,067,616.64 160,200,568.41 182,838,205.80 135,673,799.86
Net profit
attributable to
-31,147,959.30 -6,092,780.26 8,482,149.79 32,917,386.87
shareholders of
listed companies
Net profit
attributable to
shareholders of
listed companies -41,178,992.24 -13,698,338.39 2,109,131.54 -18,020,808.82
after deducting non-
recurring gains and
losses
Net cash flows from
-36,865,225.55 -20,151,263.99 -62,363,198.51 19,007,711.13
operating activities
Whether there are significant differences between the above financial indicators or their totals and the relevant
financial indicators disclosed by the Company in quarterly reports and semi-annual reports or not
□Yes No
IX. Non-recurring profit or loss and amounts
Applicable □ Not applicable
Unit: RMB
Item Amount in 2023 Amount in 2022 Amount in 2021 Remark
Profit or loss on
disposal of non- Mainly due to the
current assets impact of profit or
(including the 1,878,391.11 -1,171,953.71 974,699.74 loss on the disposal
write-off of of various non-
provision for asset current assets
impairment)
Government 44,431,212.00 9,333,093.72 23,396,336.60 Mainly government
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Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
subsidies included subsidies related to
in current profit or income and
loss (except those apportionment of
that are closely government
related to the subsidies related to
Company's normal assets, etc.
business, in line
with national policy
regulations and in
accordance with
defined criteria, and
have a lasting
impact on the
Company's profit or
loss)
Profit or loss from
changes in fair
value of financial
assets and liabilities
held by non-
Mainly investment
financial enterprises
income received
and profit or loss
from financial
from the disposal of 18,538,064.54 58,227,971.21 47,887,839.11
assets held for
financial assets and
trading
liabilities, except
for effective
hedging operations
related to the
Company's normal
business operations
Profit or loss arising
from contingencies
unrelated to the 0.00 0.00 5,000,000.00
Company's normal
business operations
Mainly due to the
reversal of the
Reversal of
provision for bad
provision for
debts made was that
impairment of
1,235,154.68 0.00 0.00 the lease deposits
receivables
were expected to be
individually tested
recovered upon
for impairment
surrender of the
leases.
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Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Mainly due to the
receipt of the
Other non-operating compensation for
revenue and power outage by
expenses other than 11,628,630.83 -635,065.42 13,652.99 Shenzhen Nanshan
those mentioned Power Zhongshan
above Company and
Nanshan Power
Plant this year.
Less: income tax
0.00 0.00 0.00
impact
Changes in the
amount of minority 2,763,648.15 -50,287.24 2,579,026.82
interests (after tax)
Total 74,947,805.01 65,804,333.04 74,693,501.62
Details of other profit or loss that meet the definition of non-recurring gains and losses:
Applicable Not applicable
The Company has no other specific circumstances of profit or loss that meet the definition of non-recurring
gains and losses.
Explanation on defining non-recurring profit or loss listed in the Explanatory Announcement No. 1 on
Information Disclosure of Companies that Offer Securities to the Public - Non-recurring Gains and Losses as
recurring profit or loss.
□Applicable Not applicable
The company does not define non-recurring profit or loss listed in the Explanation on defining non-recurring
profit or loss listed in the Explanatory Announcement No. 1 on Information Disclosure of Companies that Offer
Securities to the Public - Non-recurring Gains and Losses as recurring profit or loss.
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Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Section III Management discussion and analysis
I. Industry status of the Company during the reporting period
The Company shall comply with the disclosure requirements for power supply industry in the Shenzhen Stock
Exchange Listed Company Self-Regulatory Guidelines No. 3 - Industry Information Disclosure
According to the 2023-2024 Analysis and Forecast Report of National Power Supply and Demand released by
the China Electricity Council, in 2023, the nation's total social electricity consumption was 9.22 trillion KWH,
with per capita electricity consumption of 6,539 KWH; the electricity consumption of the whole society
increased by 6.7% YoY, with a growth rate of 3.1 percentage points higher than 2022. The rebound of the
national economy has driven the growth rate of electricity consumption to increase YoY. In each quarter, the
electricity consumption of the whole society increased by 3.6%, 6.4%, 6.6% and 10.0% YoY respectively, with
the YoY growth rate increasing quarter by quarter; affected by factors such as the low base in the same period
of 2022 and economic recovery, the YoY growth rate of electricity consumption in the entire society increased
significantly in the fourth quarter. The two-year average growth rate in the fourth quarter was 6.8%, which was
close to the two-year average growth rate in the third quarter. In terms of industries, first, the electricity
consumption of the primary industry continued to grow rapidly. In 2023, the electricity consumption of the
primary sector was 127.8 billion KWH, a year-on-year increase of 11.5%; second, the growth rate of electricity
consumption in the secondary sector increased quarter by quarter. In 2023, the secondary sector consumed 6.07
trillion KWH of electricity, a year-on-year increase of 6.5%; third, electricity consumption in the tertiary sector
resumed rapid growth. In 2023, the electricity consumption of the tertiary sector was 1.67 trillion KWH, a year-
on-year increase of 12.2%. Fourth, the electricity consumption of urban and rural residents increased at a slow
rate. In 2023, urban and rural residents' domestic electricity consumption was 1.35 trillion KWH, a year-on-year
increase of 0.9%. The high base of the previous year is an important reason for the low growth of residents'
domestic electricity consumption in 2023. Electricity consumption in 31 provinces across the country all
showed positive growth, with the western region leading the way.
As of the end of 2023, the installed capacity of power generation in China was 2.92 billion KW, a year-on-year
increase of 13.9%; Since the per capita installed capacity of power generation historically exceeded 1 kW at the
end of 2014, it historically exceeded 2 kW for the first time in 2023, reaching 2.1 kW. The installed capacity of
non-fossil energy power generation exceeded thermal power for the first time in 2023, accounting for more than
50% of total installed capacity for the first time in 2023, while the installed capacity of coal power dropped
below 40% for the first time. Judging from investment by type, growth rate of power generation capacity and
structural changes, the trend of green and low-carbon transformation in power industry continued to advance. In
2023, the power system operated safely and stably, with the overall balance of power supply and demand in
China and good results in ensuring power supply.
According to the Southern (Starting from Guangdong) Spot Power Market 2024 Annual Report, the maximum
regulated load in Guangdong Province in 2023 was 145 million KW (July 27), a year-on-year increase of 2.1%;
the regulated power generation and reception was 820.8 billion KWH, a year-on-year increase of 7.8%. The
maximum west-to-east power transmission was 42,220,000 KW, an increase of approximately 1,990,000 KW
over the annual plan; the cumulative power received from west-to-east power transmission was 178.5 billion
KWH, a year-on-year decrease of 1.8%. There was no peak power rationing throughout the year. The province's
installed capacity under unified dispatching was 193 million KW, including 147 million KW from provincial
dispatching and 45,320,000 KW from municipal dispatching. The utilization hours of coal-fired unit under
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Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
provincial dispatching were 4,926 hours, an increase of 206 hours year-on-year; 2,875 hours for gas-fired unit,
an increase of 288 hours year-on-year; 7,315 hours for nuclear power units, an increase of 198 hours year-on-
year; 2,734 hours for hydropower unit , an increase of 255 hours year-on-year; 923 hours for photovoltaic unit ,
a decrease of 202 hours year-on-year; 2,499 hours for wind unit, an increase of 151 hours year-on-year; 4,124
hours for biomass, an increase of 623 hours year-on-year. The cumulative on-grid energy of wind power,
photovoltaic, hydropower and biomass reached 90.09 billion KWH, a year-on-year increase of 11.9%; the
cumulative on-grid energy of nuclear was 99.87 billion KWH, a year-on-year increase of 3.9%. On December
29, 2023, the Guangdong Power Trading Center issued the Notice of the Guangdong Provincial Development
and Reform Commission and the National Energy Southern Regulatory Bureau on the Official Operation of the
Guangdong Spot Power Market, indicating that the spot power market in Guangdong officially started formal
operation from now on. Guangdong became the second province after Shanxi to officially operate spot power
market.
According to third-party data from the natural gas industry, China's natural gas production was 229.7 billion
cubic meters in 2023, a year-on-year increase of 5.8%; natural gas import volume was 177.556 billion cubic
meters, a year-on-year increase of 9.9%; natural gas export volume was 6.52 billion cubic meters, a year-on-
year increase of 10.1%; the apparent consumption of natural gas was 394.53 billion cubic meters, a year-on-
year increase of 7.6%. In terms of LNG supply and demand, China's apparent LNG consumption in 2023 was
35.2713 million tons, a year-on-year increase of 22.80%. Among them, domestic LNG supply was 23.2593
million tons, a year-on-year increase of 12.9%; imported LNG tanker supply was 12.012 million tons, a year-
on-year increase of 47.90%. In terms of LNG prices, the average ex-factory price of China's LNG in 2023 was
RMB 4,911/ton, a year-on-year decrease of 27.61%. Among them, the average ex-factory price of domestic
LNG was RMB 4,830/ton, a year-on-year decrease of 24.86%; the average ex-factory price of imported LNG
was RMB 5,126/ton, a year-on-year decrease of 28.73%; the average delivery price of LNG delivered to China
was RMB 5,164/ton, a year-on-year decrease of 26.62%. Generally speaking, against the background of the
gradual normalization of the Russia-Ukraine war and the slow recovery of the global economy, the overall
natural gas price declined in 2023. International natural gas spot prices fell significantly, with the average price
of the Asian spot natural gas index JKM in 2023 falling by 50% compared with 2022. The Company's fuel
procurement costs decreased slightly from 2022 due to lower international oil prices and natural gas spot gas
prices, as well as lower domestic pipeline gas prices compared to 2022.
II. Main business of the Company during the reporting period
The Company shall comply with the disclosure requirements for power supply industry in the Shenzhen Stock
Exchange Listed Company Self-Regulatory Guidelines No. 3 - Industry Information Disclosure
The Company's main business includes power and heat supply for production and operation, and technical
consulting and technical services related to power plants (stations). At the end of the reporting period, the
Company owned two gas turbine power plants. Among them, Nanshan Power Plant had three sets of 9E gas-
steam combined cycle generating units with total installed capacity of 540,000 kilowatts, located in the power
load center area of Qianhai Free Trade Zone, Shenzhen. They are main peak shaving power in the region, and
are currently in normal production and operation; Zhongshan Nanlang Power Plant received the Letter on
Matters Regarding the Units Shutdown of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. Nanlang
Power Plant from Energy Bureau of Guangdong Province on November 6, 2023 (YNDLH [2023] No. 672), in
which Energy Bureau of Guangdong Province agreed to shut down two 180MW gas-fired cogeneration units of
Zhongshan Nanlang Power Plant. At present, the two 9E gas-steam combined cycle power generating units
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Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
owned by Zhongshan Nanlang Power Plant have been shut down and withdrawn from dispatching operation,
and the related assets of the power generating units have entered the public listing and transfer process.
During the reporting period, the Company's main power business faced challenges such as fierce competition in
the power market and sustained high fuel price. In order to reduce the negative impact of the external
environment on the Company's operating performance, the Company has implemented a series of business
layout and management changes with innovative thinking and perseverance. The Company clarified annual
business goals and policies, adopted targeted major measures, and continuously increased the efforts in
economic operation management on the basis of strict work safety management. The Company, in line with the
trend of accelerating the power market-oriented reform process in Guangdong Province, organized subordinate
power plants to actively participate in power market marketing and achieved good results, which made
contributions to the Company's turn from losses to profits.
During the reporting period, the Company paid close attention to the operational development and market
expansion of its existing business. Its subsidiary Shenzhen Nanshan Power Engineering Company continued to
develop technical consulting and technical services for domestic and foreign gas turbine power station
construction projects while seizing strategic opportunities for the development new energy industry. It focused
on exploring new energy business, tried to build a "construction, operation, management and maintenance"
platform for new energy. With its professional and refined technical capabilities, Shenzhen Nanshan Power
Engineering Company has signed multiple contracts to provide clients with professional technical services;
Shenzhen Nanshan Power Environmental Protection Company took integrated energy service as its
transformation and development direction, actively expanded comprehensive energy service projects such as
industrial and commercial energy storage, distributed photovoltaic, charging pile, striving to create a new
integrated energy service business model.
Main production and operation information
Item The reporting period Same period last year
Total installed capacity (10,000
54 90
KW)
Installed capacity of newly
0 0
commissioned unit (10,000 KW)
Planned installed capacity of
0 0
approved projects (10,000 KW)
Planned installed capacity of
projects under construction (10,000 0 0
KW)
Power generation (100 million
6.57 8.60
KWH)
On-grid energy or energy sold (100
6.54 8.58
million KWH)
Average power consumption rate
3.90% 3.50%
of the power plant (%)
Utilization hours of the power
723 946
plant (hours)
The Company's power sales
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Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Applicable □ Not applicable
In 2023, the Company's two power plants completed a total of 654 million KWH of actual on-grid energy, with
medium- and long-term contracted power such as purchasing and market power amounting to 1.183 billion
KWH. The completion of power is as follows: Nanshan Power Plant completed 597 million KWH on-grid
energy, with medium- and long-term contracted power such as purchasing and market power amounting to 945
million KWH; Zhongshan Nanlang Power Plant completed 57 million KWH on-grid energy, with medium- and
long-term contracted power such as purchasing and market power amounting to 237 million KWH .
Reasons for significant changes in relevant data
Applicable □ Not applicable
On February 21, 2022, Board of Directors reviewed and approved the Proposal on Initiating the Shutdown and
Retirement of Two Sets of 9E Gas-fired Unit of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. The
Company initiated the shutdown and retirement of two 9E gas-fired units of Shenzhen Nanshan Power
Zhongshan Company, and submitted an official shutdown and retirement application to Energy Bureau of
Guangdong Province on November 24, 2022. On November 6, 2023, Zhongshan Nanlang Power Plant received
the Letter on Matters Concerning the Shutdown of the Units of Shenzhen Nanshan Power (Zhongshan) Power
Co., Ltd. Nanlang Power Plant (YNDLH [2023] No. 672) from Energy Bureau of Guangdong Province.
According to the Letter, Energy Bureau of Guangdong Province agreed to shut down two 180 MW gas-fired
cogeneration units of Zhongshan Nanlang Power Plant. As of the end of 2023, the Company's total installed
capacity has dropped to 540,000 KW.
III. Core competitiveness analysis
In recent years, affected by the macroeconomic situation and common problems in the gas turbine power
generation industry, the Company's main business is facing increasing difficulties and challenges. However, the
basic core competitiveness formed by more than 30 years of operation and development and the strong support
of the Company's major shareholders, as well as the innovative management measures taken by the Board of
Directors and management team have laid the necessary foundation for the Company's continued operations and
pursuit of transformation and development. During the reporting period, the Company closely focused on the
core task of high-quality party building to lead high-quality development, anchored the two major goals of
operation and development, and adhered to the management principles of standardization, science, pragmatism,
efficiency, fairness and justice, and performed various tasks in a down-to-earth manner. These initiatives have
fully promoted the Company's overall development, further consolidating and enhancing the Company's core
competitiveness.
1. Management culture of hard work and innovation. The Company has a group of management personnel with
a sense of innovation and the spirit of hard work. By deepening human resource reform and building a
performance-oriented appraisal and incentive mechanism, the Company advocates and creates a management
culture of unity, hard work, innovation and progress. At the same time, the Company attaches great importance
to and vigorously promotes the construction of institutional system, management system and compliance
systems. It adheres to standardized management in a legal, scientific and rigorous, efficient and orderly manner.
Through refined and standardized management orientation, a good foundation has been laid for the Company to
deeply explore internal potential and actively seek external opportunities.
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Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
2. Professional and enterprising technical talents. With more than 30 years of hard work and influence in the gas
turbine power generation industry, the Company has attracted and trained a group of technical experts and
professionals in the gas turbine industry, and has accumulated rich experience in the construction and
operational management of gas turbine power plants. In order to comply with the market trend of power market-
oriented reform in the Guangdong Province, the Company has established a professional power marketing team
to study power trading strategies, explore and build power marketing mathematical models. The accumulative
rich experience in power marketing has laid a solid foundation for the Company to participate in the
construction of new power market and integrate into the wave of power market reform. In addition, Shenzhen
Nanshan Power Engineering Company also provides professional services such as technical consultation,
commissioning, and operation guarantee for dozens of domestic and overseas gas turbine power stations; the
Company has successively undertaken technical personnel training services for dozens of power plants at home
and abroad, and has become a well-known professional talent training base in the domestic gas turbine industry,
establishing a good reputation and professional brand image in the peer group.
3. A level of expertise that is up to date. The Company has a number of independent utility model patents and
software copyrights, and jointly drafted and compiled 1 national standard. On December 23, 2021, it was
recognized by the Shenzhen Municipal Certification Management Agency as the second batch of high-tech
enterprise in 2021, representing that the company's scientific R&D and innovation work has been unanimously
affirmed by the society. During the reporting period, the Company applied for 7 utility model patents and 1
invention patent, with 6 utility model patents having been authorized. The Company's total number of
authorized patents has reached 44 (including 4 invention patents) and 8 software copyrights, which has greatly
enhanced the Company's brand image and industrial competitiveness.
4. Rich experience in industrial exploration. The Company gives full play to its own advantages to accumulate
experience in the construction and operation of new energy industries such as electrochemical energy storage,
photovoltaic, and charging pile, and actively develop comprehensive energy business. Through the preliminary
work of independent energy storage power stations and the construction and operation of photovoltaic projects,
the Company has accumulated certain experience in the preliminary preparation, construction, commissioning,
operation and maintenance of energy storage projects, and has trained a group of professionals. The rich talent
pool and technological advantages in the traditional power industry enable the Company to tap its potential and
have laid a solid technology and talents foundation for the Company to enter the new energy service field
5. Leading environmental protection level. The Company's power plants are all gas-fired generator units that
use natural gas as fuel. The CO2 emissions in flue gas are approximately 42% of those of coal-fired power
plants, providing strong support for the national "carbon peaking and carbon neutrality" construction. In
accordance with the requirements of the Shenzhen Municipal People's Government 2018 'Shenzhen Blue'
Sustainable Action Plan, the Company fully completed the "Shenzhen Blue" transformation of the #3, #10 and
#1 gas turbines of Nanshan Power Plant. After the transformation, the nitrogen oxide emissions of each unit
were reduced to less than 15mg/m3, reaching the world's most advanced level. Nanshan Power Plant was also
selected as the Top Plant Award by Power Magazine, the most authoritative magazine in the global power
industry founded in 1882.
16
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
IV. Main business analysis
1. Overview
2023 is the first year to fully implement the spirit of the 20th National Congress of the Communist Party of
China. It is also a critical year for the Company to carry out the transformation strategy. The Company's
management leads all employees to face difficulties and work hard. Focusing on the core task of high-quality
party building to lead high-quality development, and anchoring the two major goals of operation and
development, we make every effort to ensure the safety and stability of power production, vigorously improve
the profitability of main business, and actively explore the development path of transformation and upgrade,
while also comprehensively carrying out the optimization, improvement and innovation of internal management
systems and mechanisms. All the initiatives have helped us to build a standardized and efficient institutional
system and a long-term mechanism for compliance operations. As a result, the clean and upright corporate
culture is reshaped, a vigorous atmosphere of entrepreneurship is created, achieving operating results that far
exceeded expectations, and turned losses into profits.
The main work carried out by the Company during the reporting period is as follows:
(1) Strengthening the foundation by paying close attention to safety and stability. In 2023, the Company firmly
established the concept of safe development, persisted in ensuring work safety, comprehensively consolidated
the mechanism of main body responsibility and the foundation of work safety. We have actively carried out
work safety supervision and management to ensure the safe and orderly operation of the Company's production
and operations. We also maintained a stable environment for work safety and kept good records of the "Five
Nos" safety goals. First, we have signed a safety responsibility list to improve target control measures. We
comprehensively implemented safety management responsibilities and the work safety responsibility system for
all employees, strictly and meticulously implement work safety measures, so as to build a solid work safety
bottom line, and ensure the Company's sustainable development. Second, we have carried out solid safety
hazard investigation to make every effort to resolve safety risks. We carried out in-depth "special action to
investigate and manage major safety hazards in the Company" to fully understand and dynamically grasp the
number of major work safety hazards; meanwhile, we promoted the implementation of the statutory duties of
company leaders and the work safety responsibility system, so as to promote the transformation of the work
safety management model to pre-emptive prevention. Third, we have strengthened technical supervision and
pay close attention to the source of safety. In response to equipment failures, we organized equipment
assessment work to comprehensively evaluate equipment status, grasp the technical status of production
equipment. Based on the assessment, we analyzed equipment health and reliability to carry out targeted
equipment rectification, so as to ensure equipment reliability, and improve the intrinsic safety of equipment.
(2) Make overall plans to improve performance by tapping potential and enhancing efficiency. In 2023, when
the external market environment was not improved significantly, the Company made overall planning and
coordination of internal resources to maximize the cost reduction and efficiency increase on the basis of fully
ensuring the safe and stable operation of power production, resulting in a year-on-year reduction in net profit
attributable to parent company by RMB 164.32 million. The first thing we have done is to optimize the gas and
electricity matching mechanism. The Company's headquarters fully coordinated the fuel procurement and
power marketing work of Nanshan Power Plant and Shenzhen Nanshan Power Zhongshan Company. By
strengthening the matching management of gas and power, we meticulously formulated and dynamically
adjusted the clearing strategy, striving for the decrease in natural gas price, and effectively avoiding unplanned
downtime penalties. Under the circumstances where the fuel price did not drop significantly, the Company's
17
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
marginal contribution of main business turned losses into gains. Second, we strengthened budget control in an
all-round way. On the premise of ensuring work safety, we strictly controlled all kinds of non-essential and non-
urgent expenses, and at the same time, realized a significant year-on-year decline in period expenses by means
of intensive procurement and suppression of variable expenses; by strengthening communication with
government departments, we actively sorted out power generation-related subsidy policies, proactively explored
potential subsidy funds, and followed up on the entire process of subsidy application and issuance. Finally, we
successfully obtained government subsidies RMB 25.40 million. The third is to strengthen post-investment
management. The dividends received from the investment on Nanjing Sunpower, Liaoyuan Environmental
Protection and Yuanzhi Ruixin Asset were approximately RMB 10 million.
(3) Concentrating efforts to tackle difficulties and striving for development. At the beginning of 2023, the
Company clarified the strategic direction of transformation and development as focusing on new energy
industry and energy storage field, and also set annual goals. Over the past year, the Company has actively
planned around the integrated energy service industry chain to actively participate in the establishment of equity
fund for new energy storage industry in Shenzhen. We leveraged the energy storage fund's synergy and
empowerment in terms of capital, industrial ecology, business resources, M&A opportunities, etc., so as to
promote the Company's business innovation and expansion and industrial upgrading; meanwhile, we prepared
the Company's five-year strategic plan to specify the its strategic positioning for the next five years, including
specific ideas and measures, comprehensively leading the Company's transformation and development in the
next stage. All subsidiaries found their own correct path for transformation and development. In the face of
difficulties and challenges, they never gave up but worked hard with perseverance. All the staff from top to
bottom made joint efforts to resolutely achieve the common goal. Finally, we successfully completed the annual
goal. First, we revitalized those inefficient assets. When facing difficulties such as unplanned downtime, land
acquisition and storage, and employee resettlement, despite many challenges and huge pressures such as few
previous lessons to draw on, great difficulty, wide involvement, urgent schedule, complex work nodes, the
Shenzhen Nanshan Power Zhongshan Company still achieved significant progress and three breakthroughs. As
we could see that Zhongshan Company's unit shutdown was approved, the land purchase and storage agreement
was implemented, and employee placement was smoothly resolved, all these greatly reduced the Company's
operating pressure and cost burden, laying a solid foundation for the Company's transformation and
development of its main business. Second, we activated the existing power. With its key breakthroughs and
innovative achievements in technology, engineering, and management in the field of gas turbine power plant
construction for many years, Shenzhen Nanshan Power Engineering Company, previously rated as a national
"high-tech enterprise", was successfully selected as the 2023 Shenzhen "specialized, refined, differential and
innovation small and medium-sized enterprises"; the "construction, operation, management and maintenance"
management platform established in the field of new energy and energy storage grasped the general trend to
seize the maintenance service market; meanwhile, we actively developed domestic maintenance service
business, and concluded multiple contracts. Third, we explored market opportunities. Shenzhen Nanshan Power
Environmental Protection Company actively explored and expanded project opportunities in industrial and
commercial energy storage field. It successfully developed the Zhaochi energy storage project, and at the same
time obtained the trading qualification of a power sales company, achieving a new breakthrough in its
transformation and development into an integrated energy service provider. Fourth, we optimized the business
structure. Xiefu Company seized opportunities to carry out the property lease management service business of
Shenzhen Energy Corporation. It increased its profitability by grasping this business opportunity.
18
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
(4) Focusing on strengthening management through innovation and change. In 2023, the Company adhered to
the concept of "only innovators advance, only innovators are strong, and only innovators win". Aiming at the
direction of the Company's strategic transformation, while comprehensively implementing the adjustment and
optimization of the industrial layout, we established and improved the market-oriented institutional mechanism
compatible with the transformation and development. These initiatives laid the foundation for comprehensive
standardized management of the Company. Additionally, we deepened the reform with a focus on improving
the vitality and efficiency of the Company's system with a mindset of innovation and pursuit of change. First,
we advanced the construction of the Company's compliance management system in a scientific and orderly
manner in line with state-owned assets supervision. We vigorously promoted the construction of a compliance
culture, standardized working mechanisms, and optimized business processes. We also continuously carried out
institutional system sorting work to optimize and improve work. During the year, 134 new systems were added
and revised to comprehensively reconstruct the Company's management system and improve the
standardization of the Company's operations. Second, we strengthened the foundation of the team by optimizing
personnel service. We deeply promoted the reform of the personnel selection and employment mechanism,
comprehensively implemented the rectification of personnel selection and employment issues. We introduced a
series of management systems for the selection and appointment of middle-level cadres in order to standardize
and improve related work processes such as cadre selection and appointment, employee recruitment and
promotion; we scientifically formulated and assigned positions and staffing plans to strengthen the rigid
restrictions on job allocation; we innovated senior management job competition and contractual management.
We established an motivation & restriction assessment mechanism for senior management in order to strengthen
the application of performance assessment results. These initiatives effectively stimulated the overall dynamics
and vitality within the Company, and enabled the Company's transformation and development. Third, we made
general reforms to fully promote the Company's systematization and informatization construction. We
innovated the intelligent management model by completing the optimization and upgrade of the OA system. We
successfully created an efficient and intelligent office platform that met the needs of the Company's
standardization, process and fine management, significantly improving our operating efficiency; we
comprehensively upgraded the financial information system, simultaneously promoted the standardization and
regularization of accounting basics, so as to help the Company's financial accounting system transform to
unified management and control, and improve financial management efficiency and level. Fourth, we made
overall arrangements to consolidate comprehensive budget management and control capabilities. We
comprehensively upgraded the budget management concept. We transformed into comprehensive and proactive
budget control by using budget control tools; we carried out in-depth economic operation regulation work to
enhance the economic operation regulation level and improve the operation briefing system, so as to support the
achievement of operating performance.
(5) Creating a clean and upright ecosystem under the guidance of the Party. In 2023, the Company thoroughly
implemented Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the spirit of the
20th National Congress of the Communist Party of China. We strengthened Party leadership and Party building
with a high political stance. With the goal of high-quality party building to promote high-quality development,
and with the focus on strengthening the foundation of party building and reinforcing "one post & two
responsibilities" system, we promoted the integration of party building and business. The first is to learn, think
and practice and strengthen theoretical arming. Adhering to the guidance of party building, we conscientiously
organized, studied and implemented the important instructions of General Secretary Xi Jinping’s series of
important speeches; adhering to the unity of learning, thinking and application, and the unity of knowledge,
belief and action, we transformed the results of party building work into important measures to guide and
19
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
promote the Company's operation and development; we regularly organized theoretical study, center group
study and first topic study, and carried out concentrated study and seminars. The second is to continue to
consolidate the foundation of party building. We established and improved party building rules and regulations,
improved the rules of procedure for party committee meetings, and strengthened the leadership role of the party
committee in "guiding the direction, managing the overall situation, and ensuring implementation"; we
strengthened the construction of organizational teams and recruited full-time party cadres, so as to enhance the
role of grassroots party organizations as a fighting fortress. The third is to make sure the fulfillment of
responsibilities to strengthen the construction of a clean and upright ecosystem for party building. We continued
to promote the responsibility system for a clean and upright ecosystem for party building by strengthening work
style construction and strictly implementing inner-party supervision. We conscientiously implemented the work
of "eliminating the four forms of decadence" to establish new practices. We ensured the fulfillment of
responsibilities to comprehensively and strictly administering the party. We consolidated the organizational
foundation of discipline inspection and supervision by establishing a discipline inspection and supervision
office; meanwhile, we improved relevant working mechanisms to effectively strengthen self-supervision, and
purify the political ecology.
In 2023, the Company reported operating revenue of RMB 589,780,200, with net profit attributable to
shareholders of the listed company of RMB 4,158,800, and basic earnings per share of RMB 0.0069.
2. Revenue and costs
(1) Composition of operating revenue
Unit: RMB
2023 2022
Year-on-year
Proportion to Proportion to
increase or
Amount operating Amount operating
decrease
revenue revenue
Total operating
589,780,190.71 100% 694,227,657.28 100% -15.05%
revenue
By sector
Power industry 588,370,570.20 99.76% 692,615,690.26 99.77% -15.05%
Others 1,409,620.51 0.24% 1,611,967.02 0.23% -12.55%
By product
Power industry -13.52%
- power
562,688,722.91 95.41% 650,670,587.61 93.73%
production and
sales
Power industry -38.77%
-integrated 25,681,847.29 4.35% 41,945,102.65 6.04%
energy service
Others 1,409,620.51 0.24% 1,611,967.02 0.23% -12.55%
By region
Domestic 589,780,190.71 100.00% 694,227,657.28 100.00% -15.05%
Sales mode
20
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Direct sales 589,780,190.71 100.00% 694,227,657.28 100.00% -15.05%
(2) Industries, products, regions, and sales models that account for more than 10% of the Company's
operating revenue or operating profit
Applicable □ Not applicable
The Company shall comply with the disclosure requirements for power supply industry in the Shenzhen Stock
Exchange Listed Company Self-Regulatory Guidelines No. 3 - Industry Information Disclosure
Unit: RMB
Year-on-
Year-on-year Year-on-year
year
increase or increase or
Operating Gross increase or
Operating costs decrease in decrease in
revenue margin decrease in
operating operating
gross
revenue costs
margin
By product
Power industry
- power
562,688,722.91 572,117,240.68 -1.68% -13.52% -26.63% 18.16%
production and
sales
By region
Domestic 589,780,190.71 581,442,543.98 1.41% -15.05% -27.74% 17.32%
By sales mode
Direct sales 589,780,190.71 581,442,543.98 1.41% -15.05% -27.74% 17.32%
Reasons for major changes in relevant financial indicators
□Applicable Not applicable
(3) Whether the Company's physical sales revenue is greater than its labor service revenue
Yes □ No
Year-on-year
Industry Item Unit 2023 2022 increase or
decrease
100 million
Sales volume 6.54 8.58 -23.78%
KWH
100 million
Power industry Production 6.57 8.60 -23.60%
KWH
100 million
Inventory 0.00 0.00 -
KWH
Explanation for relevant data changed by more than 30% year-on-year
□Applicable Not applicable
21
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
(4) Performance of the major sales contracts and major procurement contracts signed by the Company as
of the reporting period
□Applicable Not applicable
(5) Composition of operating costs
Industry and product classification
Unit: RMB
2023 2022
Year-on-year
Proportion Proportion
Industry Item increase or
Amount to operating Amount to operating
decrease
costs costs
Power
Fuel 470,823,746.78 80.98% 661,182,466.78 82.17% -28.79%
industry
Employee
Power
compensatio 39,310,209.34 6.75% 37,731,564.54 4.69% 4.18%
industry
n
Depreciation
Power
and 26,880,870.06 4.62% 28,340,291.45 3.52% -5.15%
industry
amortization
Power
Others 44,166,016.19 7.60% 77,166,066.61 9.59% -42.76%
industry
Others Others 261,701.61 0.05% 258,934.10 0.03% 1.07%
Unit: RMB
2023 2022
Proporti Proporti Year-on-year
Product Item on to on to increase or
Amount Amount
operatin operatin decrease
g costs g costs
Power industry -
power
Fuel 470,823,746.78 80.98% 661,182,466.78 82.17% -28.79%
production and
sales
Power industry -
Employee
power
compensati 37,939,920.55 6.52% 37,731,564.54 4.69% 0.55%
production and
on
sales
Power industry - Depreciatio
power n and
26,880,870.06 4.62% 28,340,291.45 3.52% -5.15%
production and amortizatio
sales n
22
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Power industry -
power
Others 36,472,703.29 6.27% 52,478,923.00 6.52% -30.50%
production and
sales
Power industry -
Engineering
integrated energy 9,063,601.69 1.56% 24,687,143.61 3.07% -63.29%
labor
service
Others Others 261,701.61 0.05% 258,934.10 0.03% 1.07%
Remark
The Company's operating costs are mostly from natural gas. In 2023, the Company's cost of natural gas
accounted for 80.98% of operating costs; in 2022, the Company's cost of natural gas accounted for 82.17% of
operating costs.
(6) Whether there are changes in the consolidation scope during the reporting period
Yes □ No
As of December 31, 2023, there were a total of 8 entities included in the Company's consolidated financial
statements, one less than the beginning of the period. The main reason was that during the reporting period, the
business strategy of Shenzhen Nanshan Power Zhongshan Company adjusted. In view of the fact that the
Company's controlling subsidiary Shenzhen Nanshan Power (Zhongshan) Warehousing Co., Ltd. has no
substantive operations, so there was no need for existence. As a result, we made the cancellation of registration
for the company on December 13, 2023.
(7) Significant changes or adjustments to the Company's business, products or services during the
reporting period
□Applicable Not applicable
(8) Major sales customers and major suppliers
The Company's main sales customers
Total sales amount of top five customers (RMB) 588,238,682.41
Ratio of the total sales amount of the top five
99.74%
customers to total annual sales
Ratio of sales to related parties in the annual total
0.00%
sales of the top five customers
Information on the Company’s top 5 customers
No. Customer name Sales (RMB) Ratio to total annual sales
Shenzhen Power Supply Bureau Co.,
1 499,838,060.26 84.75%
Ltd.
2 Guangdong Grid Co., Ltd. 62,850,661.65 10.66%
China Machinery Engineering
3 24,522,358.98 4.16%
Corporation
4 Dengfeng International Engineering Co., 767,924.52 0.13%
23
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Ltd.
Sinohydro Engineering Bureau 8 Co.,
5 259,677.00 0.04%
Ltd.
Total -- 588,238,682.41 99.74%
Other information on major customers
□Applicable Not applicable
The Company's main suppliers
Total purchase amount of top five suppliers (RMB) 504,438,800.25
Ratio of the total purchase amount of the top five
99.16%
suppliers to the total annual purchase amount
Ratio of purchase amount of related parties among the
0.00%
top five suppliers to the total annual purchase amount
Information on the Company's top 5 suppliers
Ratio to total annual
No. Supplier name Purchase amount (RMB)
purchase amount
1 Shenzhen Gas Group Co., Ltd. 284,515,538.23 55.93%
CNOOC Gas & Power Group Co.,
2 189,023,738.54 37.16%
Ltd.
Shenzhen Power Supply Bureau Co.,
3 21,297,990.54 4.19%
Ltd.
Shenzhen Water and Environment
4 6,686,147.73 1.31%
(Group) Co., Ltd.
Zhongshan Power Supply Bureau of
5 2,915,385.21 0.57%
Guangdong Grid Co., Ltd.
Total -- 504,438,800.25 99.16%
Other information on major suppliers
□Applicable Not applicable
3. Cost
Unit: RMB
Year-on-year Description of
2023 2022
increase or decrease significant changes
The Company's
continued
Selling and
strengthening of
distribution 2,831,748.65 375,055.78 655.02%
project
expenses
development and
vigorous expansion
24
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
of business in the
field of integrated
energy service have
led to a year-on-
year increase in the
selling and
distribution
expenses
The Company
strengthened
comprehensive
budgetary control
and strictly
controlled all kinds
G&A expenses 58,330,596.87 79,099,350.54 -26.26%
of non-essential and
non-urgent
expenses, which
resulted in a year-
on-year decrease in
G&A expenses
The optimization of
asset and liability
structure of the
Company has led to
Financial expenses 11,579,637.38 32,142,802.50 -63.97% a decrease in
financing scale, and
a year-on-year
decrease in
financial expenses
R&D expenses 26,839,912.74 25,647,534.39 4.65%
4. R&D investment
Applicable □ Not applicable
Expected impact on the
Name of main R&D
Purpose Progress Goals to be achieved Company's future
project
development
The R&D of the Complete the Improve the safety and
overall upgrade of upgrade and reliability of power
R&D of intelligent the #3 gas turbine transformation of production, effectively
fire protection CO2 fire protection the gas turbine CO2 ensure the stable
Completed
device for gas system can fire protection operation of the unit, and
turbine effectively secure system and created enhance the technological
the unit's safe an intelligent content and core
operation and equipment competitiveness of the
25
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
reliability; scientific management model. Company's products and
and reasonable services.
selection of
modified products
to ensure the stable
operation of the
unit.
We aim to optimize
the structure of the
atomizing steam
Complete the
pipe through R&D; Improve the performance
optimization of
meanwhile, it is of equipment, optimize
built-in atomized air
R&D of built-in transformed from the system structure of
pipeline structure for
atomized air the outside of the equipment, eliminate
steam turbine high-
pipeline structure valve body to the safety hazards, and
Completed pressure bypass;
for steam turbine inside of the valve enhance the technological
meanwhile, new
high-pressure body, so that the content and core
technologies are
bypass direction of the competitiveness of the
used to eliminate
atomizing steam Company's products and
potential safety
pipe is improved services.
hazards.
and safety hazards
are completely
eliminated.
The modification
and development of
the unit's jacking oil
pump system and Complete the
Optimize and improve
pipelines can upgrade and
equipment performance,
eliminate the transformation of
improve the operation
operational safety the unit's jacking oil
safety and reliability of
hazards of the pump system and
R&D of jacking oil the equipment, enhance
jacking oil pump, pipeline
pump system of gas the work efficiency of
so that the performance;
turbine based on Completed inspection personnel,
reliability of the meanwhile, focus on
automatic eliminate safety hazards,
equipment can be the innovative use of
adjustment and enhance the
effectively excellent
technological content and
improved, and at technologies, so as
core competitiveness of
the same time the to solve technical
the Company's products
efficiency of difficulties of the
and services.
operation, equipment.
inspection and
maintenance can be
improved.
R&D of black start Through R&D of Completed Optimize the Conduct in-depth
26
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
of gas turbine electrochemical electrochemical research to improve
power plants based energy storage energy storage equipment performance,
on electrochemical systems, system system; reasonably optimize energy storage
energy storage parameter data can adopt new data systems, improve power
system be optimized to parameters to supply reliability, and
further improve optimize black start enhance the technological
power supply and auxiliary content and core
reliability; the frequency regulation competitiveness of the
upgrade of energy functions, so as to Company's products and
storage system can improve power services.
activate black start supply reliability.
function and
auxiliary frequency
modulation
function.
Apply the silver-
based solder in the
research and
development of
upgrading the
exciter armature Proactively pursue the
coil-specific development of new
Application of new
Research and connecting piece. technologies aimed at
materials and new
development of This reduces the improving the operational
welding
exciter rotor likelihood of the efficiency of units,
technologies to
armature-specific connecting piece extending stable
Completed improve the service
connecting piece breaking due to operation cycles, and
life of the exciter
using silver thermal stress and elevating the
rotor armature-
soldering interference from technological content and
specific connecting
technology the high-speed core competitiveness of
piece.
rotation of the the Company's products
exciter armature and services.
coil, thereby
ensuring prolonged
and stable operation
of the gas turbine
generator.
Research and Upgrade research Creation of a new Conduct in-depth
development of and development of parallel operation research on the
circulating water the gas turbine mode for gas turbine technological innovation
cooling system for cooling water Completed cooling water and application of
thermal power system to eliminate systems to improve equipment, use new
plants with two the risk of the efficiency of technologies to reduce
plate heat equipment leakage circulating water the adverse effects of
27
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
exchangers and hidden dangers cooling. unstable equipment
operating in parallel that may operation, improve
compromise the equipment performance,
safe and stable and enhance the
operation of units, technological
thereby improving sophistication and core
the operating competitiveness of the
reliability of unit Company's products and
and improving the services.
working efficiency
of circulating water
cooling.
Study the frequency
modulation
technique for Conduct in-depth
connecting the Complete upgrade research on the
high-pressure motor and transformation technological innovation
Research and
of water supply to of the frequency and development of
development of
the boiler, ensure modulation equipment to effectively
energy-saving
energy-efficient technique for reduce operating energy
devices for high-
operation of boiler connecting the high- consumption of units,
pressure feed water Completed
water supply. This pressure motor of improve equipment
pumps of power
approach water supply to the safety, and enhance the
plant boilers based
effectively reduces boiler to reduce the technological
on frequency
factory power power consumption sophistication and core
modulation
consumption while of the boiler in the competitiveness of the
enhancing the water supply plant. Company's products and
safety of the boiler's services.
water supply
system.
R&D staff
2023 2022 Change ratio
Number of R&D staff 87 71 22.54%
Proportion of number of
30.63% 18.59% 12.04%
R&D staff
Educational structure of R&D staff
Undergraduate 47 34 38.24%
Postgraduate 1 1 0.00%
Age composition of R&D staff
Under 30 years old 16 6 166.67%
30-40 years old 10 8 25.00%
Over 40 years old 61 57 7.02%
R&D investment of the Company
28
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
2023 2022 Change ratio
Amount of R&D
26,839,912.74 25,647,534.39 4.65%
investment (RMB)
Ratio of R&D investment
4.55% 3.69% 0.86%
in the operating revenue
Amount of R&D
0.00 0.00 0.00%
investment (RMB)
Ratio of capitalized R&D
investment in R&D 0.00% 0.00% 0.00%
investment
Reasons and impacts of major changes in the Company's R&D staff composition
Applicable □ Not applicable
The number of R&D staff holding bachelor's degree increased by 38.24% compared with 2022, and the number
of personnel under 30 years old grew by 166.67% compared with 2022. This is mainly due to factors such as
personnel changes related to entry, resignation, and retirement, as well as adjustments to R&D staff based on the
needs of R&D projects. The Company's number of R&D staff meets the ratio requirements of national high-tech
enterprise.
Reasons for the significant change in the proportion of total R&D investment in operating revenue compared
with the previous year
□Applicable Not applicable
Reasons for substantial changes R&D investment capitalization rates and their rationale
□Applicable Not applicable
5. Cash flow
Unit: RMB
Year-on-year increase
Item 2023 2022
or decrease
Sub-total of cash inflows
739,641,073.57 1,141,649,432.06 -35.21%
from operating activities
Sub-total of cash outflows
840,013,050.49 934,481,029.80 -10.11%
from operating activities
Net cash flows from
-100,371,976.92 207,168,402.26 -148.45%
operating activities
Sub-total of cash inflows
749,228,184.97 178,535,035.18 319.65%
from investing activities
Sub-total of cash outflows
456,538,387.59 283,315,286.80 61.14%
from investing activities
Net cash flows from
292,689,797.38 -104,780,251.62 379.34%
investing activities
Sub-total of cash inflows 421,093,926.90 1,089,969,316.66 -61.37%
29
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
from financing activities
Sub-total of cash outflows
950,780,554.86 1,234,410,158.23 -22.98%
from financing activities
Net cash flows from
-529,686,627.96 -144,440,841.57 -266.72%
financing activities
Net increase in cash and cash
-337,286,752.50 -41,582,961.53 -711.12%
equivalents
Explanation of the main factors affecting significant year-on-year changes in relevant data
Applicable □ Not applicable
(1) During the reporting period, cash inflows from operating activities decreased by 35.21% year-on-year,
mainly due to the receipt of refunds for VAT retained for future offsetting, RMB 330 million, in the same period
last year. There was no such cash inflow this year, and cash inflows from operating activities decreased year-on-
year.
(2) During the reporting period, net cash flows generated from operating activities decreased by 148.45% year-
on-year, mainly due to the receipt of refunds for VAT retained for future offsetting in the same period last year.
There was no such cash inflow this year, and net cash flows from operating activities decreased year-on-year.
(3) During the reporting period, cash inflows from investing activities increased by 319.65% year-on-year,
mainly due to the recovery of financial assets held for trading the current period, and cash inflows from
investing activities increased year-on-year.
(4) During the reporting period, cash outflows from investing activities increased by 61.14% year-on-year,
mainly due to the increase in large-amount negotiable certificates of deposit for the current period, resulting in a
year-on-year increase in cash outflows from investing activities.
(5) During the reporting period, net cash flows from investing activities increased by 379.34% year-on-year,
mainly due to the recovery of financial assets held for trading during the current period, and net cash flows from
investing activities increased year-on-year.
(6) During the reporting period, cash inflows from financing activities decreased by 61.37% year-on-year. This
was mainly due to the optimization of asset and liability structure during the current period, the reduction in
financing scale, and the year-on-year decrease in cash inflows from financing activities.
(7) During the reporting period, net cash flows from financing activities decreased by 266.72% year-on-year,
mainly due to the optimization asset and liability structure and the reduction of financing scale the current
period, resulting in a year-on-year decrease in net cash flows from financing activities.
(8) During the reporting period, net increase in cash equivalents decreased by 711.12% year-on-year, mainly
due to the receipt of refunds for VAT retained for future offsetting in the same period last year. There was no
such cash inflow this year, which affected the decrease in net cash flows from operating activities; The
Company optimized its asset and liability structure and reduced financing scale, which led to the decrease in net
cash flows financing activities.
Explanation of the reasons for the significant difference between the net cash flow generated by the Company's
operating activities during the reporting period and net profit for the year
30
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Applicable □ Not applicable
During the reporting period, there was a significant difference between the Company's net cash flows from
operating activities of RMB -100,372,000 and the net profit of RMB -2,005,700 for the year, which was mainly
due to the combined effect of investment income, amortization of deferred income, changes in operating
receivables and payables, depreciation and amortization and other non-cash expenses, and financial expenses, of
which the major items were: (1) investment income of RMB 34,997,900, which was included in net profit for
the year but did not affect the net cash flows from operating activities; (2) new advances to suppliers amounting
to RMB 22,546,200 were made during the year, which reduced net cash flows from operating activities but did
not affect net profit for the year; (3) government subsidies related to assets received in previous years
amounting to RMB 17,043,700 were allocated from other income and included in net profit for the current year
but did not affect the net cash flows from operating activities.
V. Analysis of non-main business
Applicable □ Not applicable
Unit: RMB
Explanation of
Amount Ratio in total profit Sustainability
causes
Mainly due to Recognized
investment income investment income
and dividend accounted for under
income obtained the equity method is
from financial sustainable
assets held for
Investment income 34,997,898.47 -1,744.93% trading, as well as
investment income
accounted for under
the equity method
and recognized by
joint-stock
companies
Mainly due to
provision for
Asset impairment -162,985.78 8.13% No
inventory
depreciation
Mainly due to the
receipt of the
compensation for
Non-operating power outage by
11,687,001.25 -582.69% Shenzhen Nanshan No
revenue Power Zhongshan
Company and
Nanshan Power
Plant this year
Non-operating Mainly due to
66,116.23 -3.30% No
expenses losses, damage and
31
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
scrapping of non-
current assets, etc.
VI. Analysis of assets and liabilities
1. Major changes in asset composition
Unit: RMB
End of 2023 Beginning of 2023 Increase
or
Ratio of Ratio decrease Description of
Amount total Amount of total in significant changes
assets assets proporti
on
Mainly due to the
increase in debt
Monetary 25.92
316,188,782.49 15.43% 675,496,266.40 -10.49% repayment and large-
funds %
amount negotiable
certificate of deposit
Accounts
111,975,251.10 5.46% 135,833,492.64 5.21% 0.25%
receivable
Contract
88,000.00 0.00% 217,009.58 0.01% -0.01%
assets
Inventories 86,158,251.16 4.20% 85,279,298.35 3.27% 0.93%
Investment
1,664,566.60 0.08% 1,833,344.20 0.07% 0.01%
properties
Long-term
equity 90,001,176.04 4.39% 83,496,098.24 3.20% 1.19%
investments
22.69
Fixed assets 571,482,734.35 27.89% 591,290,204.31 5.20%
%
Construction
3,448,855.10 0.17% 4,861,062.16 0.19% -0.02%
in progress
Right-of-use
2,266,946.42 0.11% 7,707,617.90 0.30% -0.19%
assets
Mainly due to the
optimization asset and
Short-term 33.76 liability structure and
341,237,886.72 16.65% 879,957,857.44 -17.11%
borrowings % the repayment of
short-term borrowings
in the current period
Long-term
58,829,426.30 2.87% 28,019,758.68 1.08% 1.79%
borrowings
Lease
0.00% 2,262,160.03 0.09% -0.09%
liabilities
32
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Mainly due to the
redemption of trading
Financial
16.88 financial products
assets held 226,000,000.00 11.03% 440,013,571.10 -5.85%
% purchased with
for trading
existing funds of the
current period
Mainly due to the
Other current increase in large-
232,865,968.63 11.36% 188,248,840.44 7.22% 4.14%
assets amount negotiable
certificate of deposit
Mainly due to the
increase in land
acquisition and
storage of the current
period in Shenzhen
Nanshan Power
Other non-
36,157,735.24 1.76% 5,371,398.18 0.21% 1.55% Zhongshan Company,
current assets
suspension of
production and
business, payment of
employee
compensation and
relocation expenses
Other
investments 11.53
300,615,000.00 14.67% 300,615,000.00 3.14%
in equity %
instruments
Mainly due to the
receipt of land
Other non- acquisition and
current 104,045,112.54 5.08% 47,511.72 0.00% 5.08% storage progress
liabilities payment by Shenzhen
Nanshan Power
Zhongshan Company
Overseas assets account for a high proportion
□Applicable Not applicable
2. Assets and liabilities measured at fair value
Applicable □ Not applicable
Unit: RMB
Beginnin Profit or Cumulati Provision Purchase Sales Other Ending
Item
g balance loss from ve fair for amount amount changes balance
33
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
changes value impairme of the the
in fair changes nt of the current current
value of included current period period
the in equity period
current
period
Financial assets
1.
Financial
assets
held for
trading 440,013,5 931,000,0 1,145,013 226,000,0
(excludin 71.10 00.00 ,571.10 00.00
g
derivative
financial
assets)
2.
Derivativ
e
financial
assets
3. Other
debt
investme
nts
4. Other
investme
nts in 300,615,0 300,615,0
equity 00.00 00.00
instrumen
ts
740,628,5 931,000,0 1,145,013 526,615,0
Total
71.10 00.00 ,571.10 00.00
Financial
0.00 0.00 0.00 0.00 0.00
liabilities
Other changes
Whether there are significant changes in the measurement attributes of the Company's main assets during the
reporting period
□Yes No
34
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
3. Restrictions of asset rights as of the end of the reporting period
Balance at the end of the previous
Item Ending balance (RMB)
year (RMB)
Deposit for bank acceptance bills 0.00 27,474,594.34
L/G deposit 5,453,862.93 0.00
Total 5,453,862.93 27,474,594.34
VII. Investment status analysis
1. Overall situation
Applicable □ Not applicable
Investment amount during the Investment amount during the
Range of change
reporting period (RMB) same period last year (RMB)
0.00 100,000,000.00 -100.00%
2. Major equity investments acquired during the reporting period
□Applicable Not applicable
3. Major ongoing non- equity investments during the reporting period
□Applicable Not applicable
4. Financial assets investment
(1) Securities investment situation
□Applicable Not applicable
The Company had no securities investments during the reporting period.
(2) Derivatives investment situation
□Applicable Not applicable
The Company had no derivative investments during the reporting period.
5. Usage of raised funds
□Applicable Not applicable
The Company has not used the raised funds during the reporting period.
VIII. Major asset and equity sales
1. Sale of major assets
Applicable □ Not applicable
35
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Net Whet
profi her it
t is
cont imple
ribut mente
ed Rati d as
by o of plann
the net ed
Whe
asset profi and as
Rela ther Whe
to t W sched
tions have ther
the cont he uled.
hip all all
liste ribut th If it is
with the the
Tran d ed er not
the prop clai
sacti com by it imple
coun erty ms Dis
on pany Impact of asset Pricing is mente
Cou terpa right and clo
Asse Date price from the sale sales principl re d as Disclo
nter rty s of debt sur
ts of s the on the to es of lat plann sure
part (app the s e
sold sale (RM begi Company the asset ed ed, index
y licab asset invo dat
B nnin (Note 3) liste sale tr the
le to s lved e
10,0 g of d an reaso
relat invo have
00) the com sa ns and
ed lved been
curr pany cti the
trans been trans
ent in on measu
actio trans ferre
peri the s res
ns) ferre d
od to total the
d
the net Comp
date profi any
of t has
sale taken
(RM shoul
B d be
10,0 explai
00) ned.
Zho Shen This land It is No Annou
ngsh zhen Dec acquisitio based ve nceme
Not
an Nan emb 58,4 n and on the mb nt No.:
0.00 N appli
Cuih shan er 45.3 0.00 storage Asset No Yes er 2023-
% o cabl
eng Pow 12, 5 matter Apprais 8, 048;
e
New er 2023 may al 20 Annou
Distr Zho revitalize Report 23 nceme
36
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
ict ngsh the issued nt
Man an Company by name:
age Com 's assets Guangd Annou
ment pany in stock, ong nceme
Com has improve Zhixin nt on
mitt three the Land matter
ee state Company and s
- 's cash Real related
own flows, Estate to land
ed reduce Apprais acquis
land the al Co., ition
use Company Ltd. and
right 's (YZXP storag
locat operating BZ No. e
ed in pressure, [2023] subsid
Hen and 1175) iaries
gme enable and held
n the determi Shenz
Indu Company ned hen
strial to better after Nansh
Zon focus on consulta an
e, transform tion Power
Nanl ation and between (Zhon
ang develop the two gshan)
Stre ment. parties. Power
et, This is in Co.,
Cuih line with Ltd.
eng the
New Company
Distr 's
ict, strategic
Zho develop
ngsh ment
an plan, and
City will have
no major
impact
on the
Company
's
productio
n and
operation
s.
37
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
2. Sale of major equity interests
□Applicable Not applicable
IX. Analysis of major holding and joint-stock companies
Applicable □ Not applicable
Information about major subsidiary and joint-stock companies that affect the Company's net profit by more than
10%
Unit: RMB 10,000
Com Registe
Company Total Operating Operating
pany Main business red Net assets Net profit
name assets revenue profit
type capital
Gas turbine power
generation, waste
heat power
generation, power
supply and
heating, lease of
terminals, oil
Shenzhen depots (excluding
Nanshan refined oil,
Power Subs excluding RMB
-
(Zhongsh idiar hazardous 746.8 26,831.82 6,290.86 -3,537.15 -3,119.81
53,199.64
an) y chemicals, million
Power excluding
Co., Ltd. flammable and
explosive
materials) and
power equipment
facilities; Land use
rights lease;
Nonresidential real
estate lease.
Technology
development for
waste heat
Shenzhen
utilization
New Subs RMB
(excluding
Power idiar 113.85 11,292.65 8,223.56 23,514.79 -3,073.99 -3,030.02
restricted projects);
Industrial y million
electricity
Co., Ltd.
generation through
waste heat
utilization;
38
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
electricity
generation through
gas turbines.
Shennan
Oil products
Energy Subs USD
trading and gas
(Singapor idiar 900,00 11,797.03 11,732.18 1,580.29 1,627.84
turbine spare parts
e) Co., y 0
agency.
Ltd.
Zhuhai
Hengqin
Zhuozhi
Investme
Subs Equity RMB
nt
idiar investments, 141,47 14,150.77 14,150.77 793.35 793.35
Partnershi
y venture capital 8,000
p
(Limited
Partnershi
p)
Technical
consulting services
of construction
engineering for
gas-steam
combined cycle
power plant
Shenzhen (stations),
Nanshan maintenance and
Power overhaul of
Gas operating
Turbine equipment for gas-
Subs RMB
Engineeri steam combined
idiar 10 9,537.79 3,553.39 4,229.95 -394.47 -354.34
ng cycle power plant
y million
Technolo (stations);
gy Engineering
(Shenzhe management
n) Co., services, technical
Ltd. services of
engineering, power
generation, solar
power generation,
and energy
storage, as well as
repairs of electrical
equipment and
39
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
general equipment,
etc.
Import and export
of goods and
technology,
domestic trade
Shenzhen
Subs (excluding RMB
Xiefu
idiar specialized, 53.3 9,241.04 7,668.08 110.11 -238.22 -63.34
Energy
y exclusively million
Co., Ltd.
controlled, and
exclusively sold
goods); real estate
agency, etc.
Energy storage
technology
services; Energy
saving
Shenzhen management
Nanshan services; contract
Power energy
Environm management;
Subs RMB
ental technical services
idiar 79 5,029.18 4,297.17 4.95 20.19
Protectio of solar power
y million
n generation
(Shenzhe technology;
n) Co., centralized fast
Ltd. charging stations;
engage in
investing activities
with self-owned
funds.
Jiangsu
Liaoyuan
Parti
Environm
cipat Chemical raw
ental RMB
ing materials,
Protectio 40.75 96,558.01 74,054.06 66,040.43 7,386.62 8,593.73
com chemicals and
n million
pani energy
Technolo
es
gy Co.,
Ltd.
Situation of acquiring and disposing subsidiary during the reporting period
Applicable □ Not applicable
40
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Methods of acquiring
and disposing subsidiary Impact on overall production
Company name
during the reporting operations and performance
period
Shenzhen Nanshan Power (Zhongshan) Cancellation during the No substantial operational
Warehousing Co., Ltd. current period impact
Situation description
During the reporting period, business strategy of Shenzhen Nanshan Power Zhongshan Company was adjusted.
In view of the fact that the Company's controlling subsidiary Shenzhen Nanshan Power (Zhongshan)
Warehousing Co., Ltd. has no substantive operations and there is no need for its existence. The cancellation of
registration was completed on December 13, 2023.
X. Structured entities controlled by the company
□Applicable Not applicable
XI. Prospects for the Company's future development
1. Analysis of the Company's operating situation in 2024
In 2024, the company's main power business will still face an extremely severe operating situation. First, natural
gas price will remain high. Although the Russia-Ukraine conflict has simmered, the global natural gas supply
situation has shown signs of relaxation as long as there are no new geopolitical emergencies or other
emergencies. Nevertheless, with the domestic economy steadily rebounding and demand gradually rising, it is
less probable for natural gas prices to witness a significant drop. Despite both the long-term contract price and
the anticipated spot-node electricity price in 2024 being low, the potential for cost-revenue inversion in power
generation production persists. Second, the Company still faces a challenging responsibility to ensure the
continuity of power supply. According to the National Electricity Supply and Demand Situation Analysis and
Forecast Report in 2023 and 2024 released by the China Electricity Council, a steady growth in national
electricity consumption is anticipated for 2024. Considering macroeconomic factors and the electrification of
end-use energy, and based on results of forecasting societal electricity consumption through diverse prediction
methodologies, it is projected that the total electricity usage in 2024 will reach 9,800 billion KWH. This
represents a growth of approximately 6% compared to the consumption levels in 2023. It is estimated that the
national maximum power load will be 1.45 billion KW in 2024, an increase of about 100 million KW from
2023. During peak periods in the summer and winter, the national electricity supply and demand situation will
maintain a tight balance. As far as Guangdong Province is concerned, considering economic factors, the scale of
new large-scale users before the summer and the influence of temperature, the maximum regulated load demand
during the summer is expected to be 158,000 MW, a year-on-year increase of 9.2%. The maximum power
planned to receive Western Power is 38,732 MW, a year-on-year decrease of 3.7 %. The Shenzhen area where
the Company is located has a predicted maximum load of 24,000 MW in 2024, a year-on-year increase of
8.76%. While power load demand continues to rise, according to the planning arrangements of the Shenzhen
Municipal Government, Nanshan Power Plant may be reduced from dual gas sources to a single gas source.
This will further increase the difficulty of ensuring fuel supply and further increase the pressure on the
Company to ensure power supply. Third, competition in the spot power market has become increasingly fierce.
On December 29, 2023, the Guangdong spot power market commenced official operations, making Guangdong
the second province after Shanxi to officially operate spot power market. At this stage, spot power market in
41
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Guangdong Province has established a power market system of "medium and long-term plus spot and ancillary
services", which has clarified the goals of developing a clean, low-carbon, safe and efficient market. As a large
number of new unit with higher energy efficiency and larger capacity come into operation, the Company's
existing 9E unit will be subject to an increasingly unfavorable situation in spot power market.
Although the Company faces difficulties and challenges in operation, management and development, its clear
strategic development direction is highly consistent with the country's requirements to accelerate the planning
and construction of a new energy system, deepen the energy revolution, and achieve the "dual carbon" goals.
Simultaneously, the Company boasts extensive business expertise in the energy and power sectors, and has
nurtured a cadre of proficient technical professionals, establishing a solid foundation for the expansion of
integrated energy services and energy storage operations. The ongoing industrial and commercial energy
storage initiatives, alongside the "construction, operation, management, and maintenance" platforms, as well as
the implementation of photovoltaic and other new energy industry upgrade projects by the Company align
closely with the latest national, provincial, and municipal policy directives. Firmly grasping the pivotal
momentum of new energy's rapid advancement, the Company is transitioning from passive survival to proactive
development, committing wholeheartedly to foster high-quality growth and advancement.
2. Summary of the Company's business plan in 2024
The year 2024 marks the first year for the Company to officially implement its five-year strategic development
plan, and it is also a critical year for the Company to achieve breakthrough progress in its transformation and
development journey. The Company will uphold the guidance of Xi Jinping Thought on Socialism with Chinese
Characteristics for a New Era, adhering to the guidance of high-quality Party building to ensure high-quality
development, actively implementing the important decisions and arrangements of the Party Central Committee
on deepening and improving the reform of state-owned enterprises and the "technological capital" development
strategy of shareholder's agencies. The Company will deepen market-oriented reform, firmly adhere to the
annual overall goal of "achieving fundamental breakthroughs in strategic transformation", make full efforts to
drive the revitalization of the Company's main business.
(1) Stick to the bottom line and make every effort to ensure work safety and stable operations. First, firmly
establish the concept of safe development, further improve the political position, comprehensively consolidate
the main responsibilities, consolidate the foundation of work safety, and make every effort to resolve various
safety risks. Second, combine the Company's transformation and development needs to build a work safety and
technical supervision and management system that is compatible with new businesses and new formats to
protect the Company's diversified business development. Third, comprehensively sort out the Company's safety
management and technical supervision practices, improve the management process, and gradually realize the
standardization, standardization and informatization of safety management and technical supervision. Fourth,
comprehensively collate the Company's emergency plan based on the current situation of the Company's safety
management, organize and complete the revision of the emergency plan, strengthen emergency drills, and
effectively improve the company's emergency management level.
(2) Optimize the layout and continue to promote the revitalization of the main business and strategic
transformation. First, seize policy opportunities, focus on new energy and energy storage, energy utilities, high-
end power equipment and other industrial fields to invest in new projects, and fully promote the implementation
of projects that support the Company's sustainable development. Second, create a professional operation
platform for "investment, construction, operation, management and maintenance" in the field of energy storage,
gradually build a integrated energy service business model, give full play to the advantages of listed companies'
42
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
capital operation platforms and energy storage funds, and increase the layout of energy storage business
expansion. Third, develop an implementation plan for power sales that aligns with the Company's integrated
energy service transformation strategy, ensuring a clear path forward in executing the Company's power sales
initiatives. Carry out power sales based on the implementation plan, and finalize the establishment of an
institutional system related to management of the Company's power sales. Fourth, strive to promote the
transformation and development of non-power enterprises, bolster the development of comprehensive energy
management projects, and establish a sustainable business model; give full play to the role of revitalizing the
system’s assets in stock and effectively absorbing and utilizing personnel, actively explore new business
domains and scale them up effectively.
(3) Innovate while staying true to tradition, turning loss into profit through the management of assets in stock.
First, execute the comprehensive shutdown of units and the disposal of assets at Shenzhen Nanshan Power
Zhongshan Company, make every effort to advance the decommissioning process to ensure the thorough
disposal of all assets; finalize the transfer of land assets and other tasks as stipulated in the relevant land
acquisition and storage agreements. Second, continuously enhance the efficiency of the power trading
mechanism while maintaining comprehensive control over transaction risks. Amidst the upcoming transition to
a single gas source model in 2024, proactive measures will be implemented to reinforce fuel supply assurance
and ensure comprehensive coordination. Prioritizing the maximization of the Company's interests, meticulous
attention will be given to gas and electricity alignment. This approach will effectively fulfill the responsibility
of guaranteeing power supply while simultaneously enhancing the profitability of the power business. Third,
bolster economic operations, intensify unit equipment maintenance, and systematically enhance the marginal
contribution and profitability of power production. This will be achieved through targeted and refined technical
measures and management methodologies. Fourth, make more scientifically sound, reasonable, and adaptable
overall strategies for fuel supply, monthly medium and long-term transactions, and unit maintenance. These
strategies will be tailored to accommodate changes in capacity price policies, with a primary focus on
maximizing the company's interests. Fifth, enhance research in technological innovation, drive the
transformation and practical application of findings, and cultivate a synergistic environment for value creation.
Sixth, strength comprehensive budget management, rigorously monitor all expenses and expenditures, and
proactively explore diverse financing avenues to fulfill funding requirements for transformation and
development. Concurrently, efforts will be made to minimize financing costs wherever feasible; closely track
and deeply explore government policy dividends or preferential policies to increase revenue and reduce
expenditure.
(4) Establish a solid foundation and elevate standardized management to a new level. First, strengthen corporate
governance, keep up with the latest requirements of national laws, regulations and securities supervision
regulations, and continuously optimize and improve the institutional system of corporate governance;
According to the actual development needs of the Company and market conditions, the functions of the capital
operation platform of listed companies will be fully utilized to assist the implementation of the Company's
transformation and development tasks. Second, enhance standardized management practices, deepen
compliance protocols, and further refine the Company's institutional system and operational mechanisms of
compliance management. Execute specialized compliance initiatives in key areas, and extend the reach of the
compliance management system to subsidiary enterprises. Third, strengthen the management of affiliated
enterprises. All functional departments of the Company must efficiently fulfill their service roles and
collaborate across all business chains to elevate the institutionalization, standardization, and refinement of
management practices within affiliated enterprises. Fourth, Intensify financial management by anchoring on
43
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
comprehensive budgeting as the lever. Establish a budget management organizational framework fostering
cross-departmental collaboration and multifaceted coordination. Reinforce budget performance management,
leveraging comprehensive budgeting as a vital instrument to propel the reform of market-oriented mechanisms
and bolster the implementation of the Company's strategic planning. Fifth, enhance audit risk control
management by reinforcing internal audit oversight and compliance with risk control measures. Vigilantly
monitor and implement the audit rectifications and spearhead efforts to elevate the Company's standardized
management practices and enhance levels of risk prevention and control.
(5) Deepen reforms and continuously enhance corporate vitality and competitiveness. First, explore and
implement a more flexible and efficient market-based salary management mechanism reform and establish a
performance-linked salary revenue distribution system. Second, continuously advance a performance-driven
culture by instituting a mid- to long-term incentive mechanism for the management team, incorporating both
annual objectives and the goals associated with employees' tenures. Develop a scientifically sound, reasonable,
and challenging system of differentiated performance indicator assessment, adhering to the principle of 'one
enterprise, one policy'; Further strengthen the evaluation of operating performance indicators for affiliated
enterprises and the performance assessment of the Company's management cadre. Implement rigorous
constraints of evaluation. Third, continue to facilitate the integration and optimization of human resources
within the system, while actively attracting exceptional external talents to cultivate a skilled team aligned with
the company's transformation and development objectives. Fourth, develop the targeted and professional
training plans tailored to the Company's transition towards an integrated energy service industry. Enhance
training programs to nurture skilled talents of different skills aligned with the Company's strategic positioning;
deploy internal competition mechanisms and job rotation exchange programs to actively foster and identify
exceptional young cadres, while proactively building a talent reservoir. This initiative aims to cultivate a high-
caliber talent pool tailored to meet the Company's evolving transformation and development requirements.
(6) Unite hearts and minds, emphasizing the importance of Party leadership and Party building. First, enhance
political guidance, uphold comprehensive and rigorous governance within the Party, ensuring the effective
manifestation of the Party's core role through the "six unifications". This will enable the leading and supporting
role of Party building efforts in enterprise reform, transformation, and development. Second, continue to
strengthen consolidating grassroots Party building, give full play to the role of grassroots Party Branches as
frontline bastions, and take the Company's reform, transformation and development as the starting point and
goal of Party building efforts. Third, adhere to the Party's oversight of talent and cadre management,
endeavoring to nurture a team of proficient management professionals versed in politics, adept in administration,
and skilled in operations. This effort aims to provide robust organizational and talent support for the Company's
transformation and development. Fourth, commit to fostering a culture of integrity within the Party to ensure
high-quality development. Unwaveringly reinforce the cultivation of a clean and honest party ethos,
conscientiously implementing anti-corruption measures. Consolidate and deepen the outcomes of inspections
and rectifications, utilizing the promotion of a clean and honest party culture to safeguard the Company's
transformation and development.
The business plan and related situation analysis described in this annual report do not constitute the
Company's commitment to investors. The Company reminds investors to maintain due risk awareness,
understand the differences between the business plan and actual operating conditions, and make prudent
decisions of investment.
3. Potential major risks and countermeasures
44
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
(1) Main business: since 2023, the Company's power plants have encountered significant challenges due to
various factors, including the continuous increase in fuel prices and outdated unit energy efficiency. With the
official commencement of Guangdong Province's power marketization, the 9E unit faces profitability
difficulties in competing with more efficient and cost-effective units. The operational outlook for the
Company's core business is expected to become increasingly challenging. The Company will persist in
enhancing the operation and management of assets in stocks, proactively adapting to the demands and dynamics
of the power market, and striving to optimize the profitability of its core operations and overall operational
efficiency. Simultaneously, the Company will prioritize integrated energy services, actively investigating
diverse business models and opportunities to transition from a traditional power generation entity to a
comprehensive energy service provider. These efforts aim to foster favorable conditions for the Company's
sustained operations and robust growth.
(2) Safety management: under the market-oriented power production model, power plants will face more
flexible scheduling methods and stricter assessment policies, which entail heightened demands on the operation
and maintenance of existing aging power generation equipment. The Company will continuously improve the
maintenance and management level of equipment by formulating scientific and reasonable maintenance and
technical transformation plans, investing corresponding funds and technical forces, implementing primary
responsibility for work safety, and ensuring the safe and stable operation of production facilities;
Simultaneously, the Company will enhance training and emergency preparedness, ensuring the implementation
of work safety responsibilities across five key areas: responsibility of work safety, management, investment,
training, and emergency response. Doing so aims to prevent any human-induced work safety accidents within
the Company's system while maintaining the supporting role of the main peak-shaving power supply point.
(3) Fuel procurement: in 2024, the Company's natural gas purchase price will mainly depend on changes in the
international fuel market and the sales prices set by the Company's existing suppliers. Amidst the backdrop of a
sluggish global economic recovery and the alleviation of tensions in the Russia-Ukraine conflict, it is
anticipated that international energy prices will persist in their decline throughout 2024. However, geopolitical
risks remain a factor of consideration. As a result, the Company's natural gas procurement costs in 2024 may
continue to decrease compared to 2023. However, despite this decline, the overall price level remains elevated,
with the potential for increased fluctuation. Furthermore, the Company may transition from a dual gas source
structure to a single gas source structure. This transition may have a negative impact on gas supply stability,
flexibility in coordinating gas volumes, and the economic aspect of gas prices. At the same time, the operation
of electricity spot trading rules and the introduction of capacity price policies have put forward higher
requirements for the stability and flexibility of natural gas supply. The Company will continue to optimize
upstream cooperation relationships, coordinate gas supply work under a single gas source, and do its best to
minimize natural gas procurement costs while ensuring gas demand for power production.
(4) Land of Nanshan Power Plant: in June 2023, the company learned about the Notice of Shenzhen Municipal
Bureau of Planning and Natural Resources on Issuing the 2023 Shenzhen City Urban Renewal and Land
Preparation Plan on the official website of the Shenzhen Municipal Planning and Natural Resources Bureau,
according to the relevant content in its appendix, 2023 Shenzhen City Urban Renewal and Land Preparation
Plan still includes the Land of Nanshan Power Plant and related content. The Company will maintain close
communication with relevant departments of Shenzhen, actively follow up on the implementation progress of
relevant government plans, and work with legal advisors to carefully study Land of Nanshan Power Plant, study
and formulate response strategies and work plans, and make every effort to protect the listed company and all
the legitimate rights and interests of shareholders.
45
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
The Company advises investors to take note of the aforementioned major risks as well as other potential
risks that may affect the Company, and to make prudent and informed investment decisions accordingly.
XII. Reception of visitors intended for research, communication, interviews and other activities during
the reporting period
Applicable □ Not applicable
Main content Basic
Reception Reception Means of discussed and information
Visitor type Visitor
date location reception information index of the
provided survey
The
Participate in
Company
General
welcomes
January - Headquarters Meetings,
Field visitors in
December office area of Individuals 4 receive visits
research accordance
2023 the Company from
with laws
individual
and
investors, etc.
regulations
Inquire about
the
Company's
future
development The
Interactive
January - direction, the Company
platform and Written
December Individuals 57 updates of offers prompt
email of the Inquiry
2023 the response in
Company
Company's writing.
investment
matters and
land-related
matters, etc.
Inquire about
the
Company's
performance,
market The
January - Telephone Telephone performance, Company
December communicati communicati Individuals 69 land-related responded in
2023 on on matters, and accordance
the update of with the law
the
Company's
investment
matters, etc.
46
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
XIII. Implementation of the action plan entitled Double Improvement of Quality and Return
Whether the Company has disclosed the action plan entitled Double Improvement of Quality and Return
□Yes No
47
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Section IV Corporate governance
I. Basic situation of corporate governance
During the reporting period, the Company continued to enhance its corporate governance structure and improve
the modern corporate governance structure in accordance with the relevant laws, regulations, normative
documents such as the Company Law, Securities Law, Code of Governance of Listed Companies, Stock Listing
Rules, and the Company's Articles of Association. The Company improved the level of standardized
governance and refined management, and effectively protected the legitimate rights and interests of listed
companies, investors and employees.
1. General Meeting: the Company convened General Meetings in strict accordance with legal procedures to
ensure that shareholders exercise their rights in accordance with the law. During the reporting period, the
Company held one regular General Meeting and four Extraordinary General Meetings to carefully study and
deliberate on major matters requiring decision-making by the shareholders' meeting. The convening and calling
procedures of the Company's General Meetings, the attendees and the subject qualifications of the convener,
voting procedures and voting results were all in compliance with the Company Law, Securities Law, Rules for
General Meetings of Listed Companies and other laws, regulations, normative documents and relevant
provisions of the Company's Articles of Association. The Company had neither major shareholder nor related
parties involved in the appropriation or transfer of the Company's funds, assets and other resources in any form.
2. Board of Directors: the Board of Directors of the Company adheres to standardized operation and
management, implementing various measures to enhance its own development, and elevate the standardization
and scientific decision-making capabilities of the Board. During the reporting period, Board of Directors of the
Company held 2 regular meetings and 10 extraordinary meetings to meticulously deliberate and review major
matters within its scope of authority. The four special committees under the Board of Directors, namely the
Strategy and Investment Management Committee, the Audit Committee, the Nomination Committee, and the
Remuneration and Appraisal Committee, meticulously deliberate and review relevant matters according to their
respective responsibilities. They provided opinions and suggestions to fully leverage the role of each committee
in addressing major issues. These committees actively contributed to investment decision-making, key
personnel adjustments, standardized management, internal auditing, and risk control, ensuring the scientific
nature of the company's decision-making processes and management standardization.
3. Board of Supervisors: the Company's Board of Supervisors conscientiously performs its supervisory duties in
accordance with relevant laws and regulations, demonstrating a responsible attitude toward the Company and
shareholders. During the reporting period, the Company's Board of Supervisors held 2 regular meetings and 7
extraordinary meetings to supervise and inspect important matters such as the Company's financial situation,
major decision-making matters, internal control, and standardized management, and expressed opinions. At the
same time, the Board of Supervisors also performed its supervisory duties by attending General Meetings and
the meetings of Board of Directors and organizing on-site inspections of the Company's subsidiaries to gain an
in-depth understanding of the Company's operations and management.
4. Managers: during the reporting period, the Company's managers strictly followed relevant laws and
regulations and the requirements of the Company's Articles of Association, conscientiously implemented the
decisions of the General Meeting and Board of Directors, actively organized and carried out the Company's
production, operation and management activities. They consistently refined the office meeting system and
48
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
internal control system, consistently optimized work processes and decision-making procedures, followed the
working principles of reasonable division of labor, enhanced cooperation and the purpose of collective decision-
making on major matters, continuously improved the Company's management level, striving to achieve annual
operating goals.
5. Information disclosure and investor relations management: board of Directors of the Company strictly
complies with the requirements of the Measures for the Administration of Information Disclosure of Listed
Companies, the Stock Listing Rules and other regulations and normative documents, and conscientiously
performs its information disclosure obligations. During the reporting period, the Company diligently prepared
and disclosed regular and ad-hoc reports in compliance with relevant laws and regulations. A total of 122
announcements were issued over the year, aiming to provide investors with comprehensive insights into the
Company's production, operations, management, and significant developments. The Company rigorously
adheres to stipulations outlined in normative documents such as the Guidelines for the Management of Investor
Relations of Listed Companies and the Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed
Companies No. 1 - Standardized Operations of Main Board Listed Companies to effectively manage investor
relations. The Company has facilitated investor engagement through on-site visits, email correspondence,
investor hotlines, the Shenzhen Stock Exchange's interactive platform, and other communication channels, so as
to enhance investors' understanding of the Company.
6. Insider information management: the Company strictly follows the requirements of regulations and normative
documents such as the Information Disclosure Management Measures for Listed Companies and the Guidelines
for the Supervision of Listed Companies No. 5 - Registration and Management System for Insiders of Listed
Companies' Insider Information, standardizes the Company's insider information management, and
conscientiously submits memoranda on updates of major event and insider information files in accordance with
relevant regulations. During the reporting period, the Company neither leaked any inside information, nor
violated information disclosure regulations by providing undisclosed information to major shareholders.
7. Internal control and standardized management: during the reporting period, the Company meticulously
carried out internal control self-evaluation, internal audit and other aspects, and took active and effective
measures to correct existing problems and deficiencies. Meanwhile, the Company strengthened business
training and compliance education for directors, supervisors, senior officers and middle-level management
cadres at all levels, increased assessments, rewards and punishments, further improved standardized
management levels, and strive to prevent operational management risks.
Whether the Company's actual situation of corporate governance is significantly different from the laws,
administrative regulations and the provisions on listed company governance issued by CSRC
□Yes No
There is no significant difference between the actual situation of the Company's corporate governance and the
laws, administrative regulations and regulations on the governance of listed companies issued by the CSRC.
II. The Company's independent possession of assets, personnel, finance, organization, and business, etc.
from its controlling shareholders and actual controllers.
The Company has no controlling shareholder. The Company is completely independent of its major
shareholders in terms of personnel, assets, finance, business, and institutions, and has the ability to make
independent decisions and operate effectively.
49
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
1. Personnel independence: the Company has an independent human resources management system, salary and
welfare system; All senior officers of the Company are full-time managers of the Company and do not hold
other administrative positions other than directors and supervisors in shareholder entities; The Company recruits
and fires employees on its own within the scope approved by Board of Directors and based on operational and
management needs. The Company has established a comprehensive human resources management system and
has independent management rights.
2. Asset independence: the Company has independent production facilities and auxiliary systems, land use right
and housing property rights, office facilities and equipment. Within the scope of authorization by the General
Meeting and Board of Directors, it has the power to independently purchase and dispose of assets.
3. Financial independence: the Company has an independent Financial Management Department and
accounting system, has equipped with independent financial management and accounting personnel, has
established a more complete financial management system, and has independent bank accounts and tax
accounts. The Company has independent financial decision-making power within the scope authorized by the
General Meeting and the Board of Directors, and there is no situation in which major shareholders interfere with
financial management or misappropriation of funds, etc.
4. Business independence: the Company independently carries out production and operating activities, and has
established independent and complete production, procurement and sales channels and management system.
Within the scope authorized by the General Meeting and the Board of Directors, the Company operates
independently, manages itself and is responsible for its own profits and losses.
5. Institutional independence: based on the needs of production, operation, and management, the Company has
established a more perfect organizational structure and management structure in accordance with modern
enterprise management standards. There is no situation in which shareholders interfere with the establishment
and operation of the Company's institutions, and there is no situation in which they share the organizational
structure with shareholders.
III. Horizontal competition
□Applicable Not applicable
IV. Relevant information on the Annual General Meeting and Extraordinary General Meeting held
during the reporting period
1. Information on the General Meeting during the reporting period
Investor
Convening Disclosure
Session Type participation Resolution
date date
ratio
The Proposal on By-
The First election of non-
Extraordinary Extraordinar employee supervisors
March 23, March 23,
General y General 38.36% of the Ninth Board of
2023 2023
Meeting for Meeting Supervisors of the
2023 Company was reviewed
and approved
2022 Annual Annual 38.40% May 5, 2023 May 5, 2023 13 proposals including
50
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
General General 2022 Work Report of
Meeting Meeting the Board of Directors
and 2022 Work Report
of Board of Supervisors
were reviewed and
approved
The Second The Proposal on Hiring
Extraordinary Extraordinar an Auditor for 2023 and
September September
General y General 38.32% Determining Its
15, 2023 15, 2023
Meeting for Meeting Remuneration was
2023 reviewed and approved
The Proposal on
The Third Investment in Shenzhen
Extraordinary Extraordinar New Energy Storage
November 3, November 3,
General y General 12.23% Industry Equity Funds
2023 2023
Meeting for Meeting and Related
2023 Transactions was
reviewed and approved
The Proposal on Land
The Fourth
Acquisition and Storage
Extraordinary Extraordinar
November 24, November of Shenzhen Nanshan
General y General 38.36%
2023 24, 2023 Power (Zhongshan)
Meeting for Meeting
Power Co., Ltd. was
2023
reviewed and approved
2. Preferred shareholders whose voting rights have been restored request the convening of an
Extraordinary General Meeting of Shareholders
□Applicable Not applicable
V. Directors, supervisors and senior officers
I. Basic information
Num Nu
Numb
ber mbe Numb
er of
of r of er of
shares
share shar Other shares Reaso
reduc
s es increa held ns for
Incu ed in
Commen Expirat held incr ses/de at the increa
Gen Posi mben the
Name Age cement ion of at the ease crease end se or
der tion cy curre
of term term begin d in s of the decre
status nt
ning the (share perio ase in
perio
of the curr s) d shares
d
perio ent (share
(share
d peri s)
s)
(shar od
51
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
es) (sha
res)
Kong Chai Septemb April
Mal Incu
Guolia 40 rma er 13, 26, 0 0 0 0 0
e mbent
ng n 2022 2024
Vice
Septemb April
Hu Mal Chai Incu
53 er 13, 26, 0 0 0 0 0
Ming e rma mbent
2021 2024
n
April
Huang Mal Dire Incu June 3,
52 26, 0 0 0 0 0
Qing e ctor mbent 2019
2024
April
Dire Incu August
26, 0 0 0 0 0
ctor mbent 28, 2017
2024
Chen Mal
58 Gen
Yuhui e April
eral Incu August
26, 0 0 0 0 0
Man mbent 11, 2017
2024
ager
April
Dire Incu April 25,
26, 0 0 0 0 0
ctor mbent 2016
2024
Exe
cuti
Wu
Mal ve
Guowe 58
e Dep April
n Incu April 1,
uty 26, 0 0 0 0 0
mbent 2016
Gen 2024
eral
Man
ager
Sun April
Mal Dire Incu April 26,
Huiron 40 26, 0 0 0 0 0
e ctor mbent 2021
g 2024
Inde
pend April
Huang Fem Incu August
52 ent 26, 0 0 0 0 0
Xiqin ale mbent 2, 2022
dire 2024
ctor
Inde
pend Novemb April
Chen Mal Incu
53 ent er 17, 26, 0 0 0 0 0
Zetong e mbent
dire 2017 2024
ctor
52
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Inde
pend Novemb April
Du Mal Incu
68 ent er 11, 26, 0 0 0 0 0
Wei e mbent
dire 2019 2024
ctor
Chai
rma
n of
the April
Zhai Mal Incu March
52 Boar 26, 0 0 0 0 0
Baojun e mbent 23, 2023
d of 2024
Sup
ervis
ors
Sup April
Li Mal Incu April 26,
45 ervis 26, 0 0 0 0 0
Caijun e mbent 2021
or 2024
Sup April
Liao Mal Incu June 3,
35 ervis 26, 0 0 0 0 0
Junkai e mbent 2019
or 2024
Emp
loye
e
repr
Qian April
Mal esen Incu April 26,
Wenhu 55 26, 0 0 0 0 0
e tativ mbent 2021
i 2024
e
supe
rvis
or
Emp
loye
e
repr
April
Lu Fem esen Incu April 26,
41 26, 0 0 0 0 0
Yindi ale tativ mbent 2021
2024
e
supe
rvis
or
Dep April
Septemb
Li Mal uty Incu 26,
52 er 18, 0 0 0 0 0
Chao e gene mbent 2024
2023
ral
53
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
man
ager
Dep April
uty 26,
Septemb
Tao Mal gene Incu 2024
56 er 18, 0 0 0 0 0
Lin e ral mbent
2023
man
ager
Chie
f
Zhang April
Mal Fina Incu June 13,
Xiaoyi 36 26, 0 0 0 0 0
e ncial mbent 2022
n 2024
Offi
cer
Secr
etar
y of
April
Mal the Incu April 26,
Zou Yi 50 26, 0 0 0 0 0
e Boar mbent 2021
2024
d of
Dire
ctors
Chai
rma
n of
the Novemb Februa
Ye Mal Leave
60 Boar er 17, ry 27, 0 0 0 0 0
Qiliang e office
d of 2017 2023
Sup
ervis
ors
Dep
uty
Decemb March
Zhang Fem gene Leave 17,32 17,32
55 er 30, 20, 0 0 0
Jie ale ral office 5 5
2006 2023
man
ager
17,32 17,32
Total -- -- -- -- -- -- 0 0 0
5 5
Whether there was any departure of directors and supervisors and dismissal of senior officers during their term
of office during the reporting period
Yes □ No
54
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
On February 27, 2023, the Board of Supervisors of the Company received a written resignation report submitted
by Mr. Ye Qiliang, the Chairman of the Board of Supervisors. Mr. Ye Qiliang resigned from his position as the
supervisor of the Ninth Session of the Board of Supervisors and Chairman of the Board of Supervisors of the
Company due to reaching the statutory retirement age, and his resignation took effect from the date on which
his resignation report was delivered to the Company's Board of Supervisors.
On March 20, 2023, the Board of Directors of the Company received a written resignation report submitted by
Ms. Zhang Jie, the Deputy General Manager. Ms. Zhang Jie resigned from her position as Deputy General
Manager of the Company due to reaching the statutory retirement age, and her resignation took effect from the
date on which his resignation report was delivered to the Board of Directors of the Company.
Changes in directors, supervisors and senior officers of the Company
Applicable □ Not applicable
Name Position held Type Date Reason
Deputy general
Li Chao Appointed September 18, 2023
manager
Deputy general
Tao Lin Appointed September 18, 2023
manager
Chairman of the
Ye Qiliang Board of Leave office February 27, 2023 Retired
Supervisors
Deputy general
Zhang Jie Leave office March 20, 2023 Retired
manager
2. Position
The professional background and main work experience of the Company's incumbent directors, supervisors and
senior officers, as well as their main responsibilities currently
(1) Members of the Board of Directors of the Company:
Mr. Kong Guoliang: was born in 1983, is a member of the CPC, has obtained a master's degree in finance from
Central University of Finance and Economics, and is a Certified Public Accountant and Economist. He has
successively served as Warrant Services Manager and Securities Representative of Shenzhen Zhenye (Group)
Co., Ltd., Senior Manager and Deputy Minister of the Investment Department of Shenzhen Yuanzhi Investment
Co., Ltd., Minister of Capital Operations Department, Minister of Investment and Development II, Minister
(Director) of the Department of Strategic Studies (Office of the Board of Directors) and Secretary of the Board
of Directors of Shenzhen Capital Holdings Co., Ltd., a director of Shenzhen Zhenye (Group) Co., Ltd., a
director of China International Marine Containers (Group) Co., Ltd., General Manager of Shenzhen Pingwen
Development Investment Co., Ltd., and Chairman of Shenzhen Yuanzhi Culture Holding Co., Ltd. Currently, he
is the Chairman of Shenzhen Energy Corporation, the director of Shenzhen Energy (Hong Kong) International
Limited, and the director of HONG KONG NAM HOI (INTERNATIONAL) LTD. From September 2022 to
the present, he has served as the Chairman of the Company, and from November 2022 to the present, he has
served as the Secretary of the Party Committee of the Company.
Mr. Hu Ming: was born in 1970, is a member of China National Democratic Construction Association, has
obtained a master's degree, and is a Senior Engineer. From March 2003 to December 2019, he served in
55
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
government-related agencies such as Nanshan District Housing and Construction Bureau, Audit Bureau, etc.;
from January 2020 to August 2021, he served as the Managing Director of Shenzhen Dashahe Construction
Investment Co., Ltd. and the Managing Director of Shenzhen Nanshan Anju Construction and Development Co.,
Ltd.; from August 2021 to present, he has served as the Managing Director of Shenzhen Guangju Energy Co.,
Ltd., and from September 2021 to present, he has served as the Vice Chairman of the Company.
Mr. Huang Qing: was born in 1971, is a member of the CPC, is an Economist with a master's degree in
economics, and graduated from Wuhan University majoring in National Economic Planning and Management.
He has successively served as a Clerk, Deputy Chief Clerk and Chief Clerk of the General Office of Shenzhen
Municipal Government, Deputy Director of the Comprehensive Department of the General Office of Shenzhen
Municipal Government, Director of the Comprehensive Department of the General Office of Shenzhen
Municipal Government, Deputy Secretary of the General Office of Shanxi Provincial Government, Deputy
Director of the Shanxi Provincial Government Office in Guangzhou, member of the Party Group, etc. Currently,
he is the Deputy General Manager of Shenzhen Capital Holdings Co., Ltd., and also serves as a Director of
Shenzhen Energy Corporation, a Director of Shenzhen Environment and Water Investment Group Co., Ltd., a
Director of Shenzhen High-tech Investment Group Co., Ltd., and a Director of Xiong'an Green Research Think
Tank Co., Ltd., a Director of Shenzhen Institute of Building Research Co., Ltd., and Chairman of Shenzhen
Yixin Investment Co., Ltd.; from June 2019 to present, he has served as a director of the Company.
Mr. Chen Yuhui: was born in 1965, is a member of the CPC, is a Senior Engineer, graduated from Shanghai
Jiaotong University, and has obtained a bachelor's degree in ship power (undergraduate degree) and a master's
degree in vibration, impact and noise (graduate degree). In 1989, he worked in the Maintenance Department of
Shenyang Liming Gas Turbine Co., Ltd.; From December 1989 to June 2006, he worked at the Yueliangwan
Power Plant of Shenzhen Energy Group, where he served as the Duty Officer of the Operation Department, a
Specialist in the Chief Engineer's Office, Deputy Director of the Maintenance Department, Deputy Plant
Director, Plant Director, etc; from June 2006 to July 2014, he worked at the Eastern Power Plant of Shenzhen
Energy Group, where he served as Deputy General Manager and Operations Director; from July 2014 to August
2017, he served as Chairman, General Manager and Party Branch Secretary of Zuhai Shenzhen Energy
Hongwan Power Co., Ltd.; from August 2017 to present, he has served as the director and General Manager of
the Company, and from May 2019 to present, he has served as Deputy Secretary of the Party Committee of the
Company.
Mr. Wu Guowen: was born in 1965, and has obtained a bachelor's degree. Since 1994, he has worked in
Shenzhen Guangju Energy Co., Ltd. From 2008 to November 2010, he worked in Shenzhen Yisheng Liquid
Warehousing Co., Ltd. as Deputy General Manager; from December 2010 to March 2016, he worked in
Shenzhen Guangju Real Estate Co., Ltd., and served successively as Executive Deputy General Manager, legal
representative, executive director, and General Manager; from August 2013 to March 2018, he served as
employee supervisor of Shenzhen Guangju Energy Co., Ltd.; from March 2018 to September 2021, he also
served as the Chairman of Shenzhen Xiefu Energy Co., Ltd.; since January 2022, he has also served as a
director of Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd.; from April 2016 to present, he
has served as a director and Executive Deputy General Manager of the Company.
Mr. Sun Huirong: was born in 1983, is a member of the CPC, has obtained a master's degree, and is an Engineer.
He has successively served as Senior Staff and Project Manager of Shenzhen Geotechnical Investigation &
Surveying Institute Co., Ltd., Chief Investment Officer of Shenzhen Dipingxian Investment Management Co.,
Ltd., and Senior Manager and Deputy Minister of Research Department and Deputy Minister of Strategic
56
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Research and M&A and Restructuring Department, etc. of Shenzhen Capital Holdings Co., Ltd. He is currently
the Minister of Asset Management Department of Shenzhen Capital Holdings Co., Ltd., and he also serves as a
director of China International Marine Containers (Group) Co., Ltd., a director of Shenzhen Institute of
Building Research Co., Ltd., a director of Shenzhen Zhenye (Group) Co., Ltd., and a director of Shenzhen
MTC Co., Ltd., etc. he has served as a director of the Company since April 2021.
Ms. Huang Xiqin: was born in 1971, has obtained a bachelor's degree in law and a master's degree in economics
from the Party School of the Central Committee of the CPC, and a master's degree in business administration
for senior officers from Guanghua School of Management, Peking University. She started working in
September 1992. From September 1992 to May 1998, she served as Appraiser, Manager, etc. of Shenzhen
International Real Estate Consulting Co., Ltd.; from May 1998 to date, she has served as executive director of
Guozhonglian Asset Appraisal Land and Real Estate Valuation Co., Ltd.; from December 2000 to date, he has
served as Chairman of Guozhonglian Construction Engineering Management Consulting Co., Ltd.; from
November 2001 to present, she serves as Chairman of Guangdong Guozhonglianxing Asset Appraisal Land and
Real Estate Valuation, Planning and Consulting Co., Ltd.; from February 2015 to date, she has served as a
director of Beijing Guozhonglian Auction Co., Ltd.; from January 2022 to present, she has also served as an
External director of Guangdong Construction Engineering Group Co., Ltd. She has served as an independent
director of the Company since August 2022.
Mr. Chen Zetong: was born in 1970, has obtained a bachelor's degree in law from Southwest University of
Political Science and Law, a master's degree in law from the University of Hong Kong, and a doctorate in law
from Jilin University. From 1994 to 2003, he served as a Clerk, Assistant Judge and Judge in the Real Estate
Tribunal of Shenzhen Intermediate People's Court; from 2003 to 2006, he served as the Presiding Judge of the
Economic Tribunal; from July to August 2002, he interned in the High Court of Hong Kong as a Judicial
Assistant; from 2006 to 2010, he served as the Deputy Chief Judge of the Seventh Civil Tribunal (Corporate
Liquidation and Bankruptcy Tribunal). From 2010 to 2012, he served as a Consultant and Partner of King &
Wood Mallesons in Beijing. From 2012 to present, he has served as a Senior Partner of Beijing Junzejun Law
Offices. He is currently an Arbitrator of China International Economic and Trade Arbitration Commission, an
Arbitrator of Shenzhen Court of International Arbitration (also known as South China International Economic
and Trade Arbitration Commission and Shenzhen Arbitration Commission) and an Arbitrator of Huizhou
Arbitration Commission. He is also an independent director of CALB Group Co., Ltd., and an independent
director of unlisted companies, Fude Insurance Holdings Co., Ltd., Fude Sino-Life Insurance Co., Ltd. and Sino
Life Asset Management Co., Ltd. He has served as an independent director of the Company from November
2017 to date.
Mr. Du Wei: was born in 1955, is a member of the CPC, is a Senior Engineer, has obtained doctorate, and
graduated from Institute of Plasma Physics Chinese Academy of Sciences, majoring in Nuclear Fusion and
Plasma Physics. He has served as a Cadre of the National Energy Commission, Assistant Engineer and Chief
Clerk of Yangtze River Basin Planning Office, Engineer and Deputy Department Manager of China Nanshan
Development Co., Ltd., Deputy General Manager and General Manager of Shenzhen Changjiang Computer
Industry Co., Ltd., Deputy Minister (Deputy Division Director) and Minister (Division Director) of the
Evaluation and Recommendation Center for Senior Managers of the Organization Department of Shenzhen
Municipal Party Committee, Deputy General Manager of Shenzhen Expressway Development Co., Ltd.,
Chairman of Shenzhen International Western Logistics Co., Ltd., General Manager of Shenzhen International
Qianhai Industrial (Shenzhen) Co., Ltd., Senior Consultant of Shenzhen International Business Management
(Shenzhen) Co., Ltd., and executive director and General Manager of Shenzhen Tianyu Freight Forwarding Co.,
57
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Ltd. Currently, he is the executive director and General Manager of Shenzhen Borun Investment Co., Ltd. He
has served as an independent director of the Company from November 2019 to present.
(2) Members of the Board of Supervisors of the Company:
Mr. Zhai Baojun: was born in August 1971, is a member of the CPC, and has obtained a bachelor's degree.
From May 1993 to August 2001, he served as the Manager of Sales Department of Zhaobao Real Estate
Company in Baoan District, Shenzhen; from August 2001 to November 2013, he worked at Shenzhen Guangju
Energy Co., Ltd., where he served successively as Secretary of the Youth League Committee, Armed Officer,
Office Director, Director of the Party Office, and Vice Chairman of the Trade Union of the Company; from
December 2013 to April 2015, he served as Deputy General Manager of Shenzhen Guangju Yida Hazardous
Chemicals Storage Co., Ltd.; from May 2015 to April 2020, he served as Deputy General Manager of Shenzhen
Xiefu Energy Co., Ltd.; from May 2020 to March 2023, he served as Acting General Manager of Xiefu
Company; from March 2023 to present, he has served as Chairman of Board of Supervisors of the Company.
Mr. Li Caijun: was born in 1978, is a member of the CPC, and has obtained a master's degree. He once served
as an Accounting Teacher in Chongqing Beibei Vocational High School, Manager of Finance Department of
Chongqing Yanlong Property Development Co., Ltd., Manager of Investment Banking Department of Shenzhen
Energy Finance Co., Ltd., Head of Financial Management Department and Deputy Minister of Financial
Management Department of Shenzhen SEZ Construction and Development Group Co., Ltd., Deputy Minister of
Strategic Research and M&A and Restructuring Department of Shenzhen Capital Holdings Co., Ltd., Chief
Financial Officer of Shenzhen Environment and Water Investment Group Co., Ltd., and Minister of Planning
and Finance Department of Shenzhen Capital Holdings Co., Ltd., etc. He is currently serves as the General
Manager of Shenzhen Yuanzhi Culture Holding Co., Ltd. He has served as the supervisor of the Company from
April 2021 to present.
Mr. Liao Junkai: was born in 1988, is a member of the CPC, has obtained a master's degree in law, and
graduated from South China University of Technology, majoring in Master of Laws. He served successively as
Assistant, Supervisor, Manager, etc. of the Risk Control Department of Shenzhen Capital Holdings Co., Ltd.;
from November 2020 to November 2021, he also served as a supervisor of Shenzhen Institute of Building
Research Co., Ltd.; from June 2021, he has served as the General Manager of Asset Management Center of
Shenzhen CLOU Electronics Co., Ltd. He has served as the supervisor of the Company from June 2019 to
present.
Mr. Qian Wenhui: was born in 1968, is an Accountant, has obtained a bachelor's degree, and graduated from
Changsha Normal University of Water Resources and Electric Engineering in 1990, majoring in Financial
Accounting. From July to October 1990, he worked at Yangluo Power Plant in Wuhan. From October 1990 to
August 2003, he worked in the Finance Department the Company; from August 2003 to October 2011, he
served as Chief Financial Officer of Zhongshan Zhongfa Electric Power Co., Ltd.; from March 2014 to
December 2016, he served as a supervisor of Zhongshan Shenzhong Real Estate Development Co., Ltd. and
Zhongshan Shenzhong Real Estate Investment and Property Co., Ltd.; from November 2010 to present, he has
served as the Director of Audit and Risk Control Department the Company; from May 2014 to present, he has
served as a supervisor of Xiefu Company. From April 2021 to present, he has served as employee representative
supervisor of the Company.
Ms. Lu Yindi: was born in 1982, is a member of the CPC, has obtained a master's degree, and graduated from
School of Management, Huazhong University of Science & Technology in 2008, majoring in Management
58
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Science and Engineering. In July 2008, she joined the Global Supply Chain Management Division of Foxconn
Technology Group's iDSBG Business Group, where he served successively as Deputy Section Chief, Section
Chief and Specialist of the Supply Chain Management Division. She joined the Company in August 2018, and
has successively served as Supervisor of Contracts and Bidding Management of the Safety and Technology
Department, Deputy Director of the Supply Department and Director of the Supply Department of Nanshan
Power Plant (a subsidiary of the Company), and Deputy Director of the Company's Fuel Management
Department; from June 2021 to present, she has served as the Director and Deputy Director of the Office of the
Board of Directors of the Company. From April 2021 to present, he has served as employee representative
supervisor of the Company.
(3) senior officers of the Company:
For information about Chen Yuhui, the General Manager, and Wu Guowen, the Executive Deputy General
Manager, please refer to the aforementioned directors' resumes.
Mr. Li Chao: was born in 1971, graduated from the Department of Finance of Shanxi University of Finance and
Economics, has obtained a master's degree in Business Administration of Macau University of Science and
Technology, and is a Senior Accountant. He started working in July 1994 and has once served as Project
Manager of the Audit Department of Shenzhen Dahua Certified Public Accountants, Finance Manager of
Compaq Computer Technology (China) Co., Ltd., and Chief Financial Officer of China Electricity Finance
(Hong Kong) Limited; he joined Shenzhen Nanshan Power Co., Ltd. in February 2001, and he served
successively as Assistant Minister, Minister, Deputy Chief Economist, Manager, and Assistant to the General
Manager of the Corporate Development Department of the Company. He is currently the Chairman of Xiefu
Company. From September 2023 to present, he has served as Deputy General Manager of the Company.
Mr. Tao Lin: was born in 1967, graduated from Shanghai Jiaotong University, majoring in Power System and
Automation, has obtained a master's degree in Business Administration from the School of Economics and
Management, Tsinghua University, and is an Economist. He started working in July 1989, and has once served
as Production Officer of the Youth League Committee of Dalian Electric Power Bureau and the On-site
Secretary of the Office of Shenzhen Huaneng Economic Development Company. In January 1992, he joined
Shenzhen Nanshan Power Co., Ltd., and served successively as Office Secretary, Director, Secretary of the
Board of Directors, General Manager of Shenzhen Xiefu Oil Supply Co., Ltd., General Manager of Zhongshan
Power Co., Ltd. and Zhongshan Zhongfa Power Co., Ltd., and Deputy Chief Economist of the Company, and
Assistant to the General Manager. He currently serves as Vice Chairman of Shenzhen Nanshan Power
Zhongshan Company, Chairman of Shenzhen Nanshan Power Environmental Protection Company, and
executive director of New Power Company. From September 2023 to present, he has served as Deputy General
Manager of the Company.
Mr. Zhang Xiaoyin: was born in 1987, is a member of the CPC, with a master's degree, has obtained a
bachelor's degree in Economics from Xiamen University and a master's degree in Business Administration from
Wuhan University, and has obtained professional qualifications such as Senior Accountant, Certified Public
Accountant, CertifiedTaxAgent, Asset Appraiser, Financial Risk Manager (FRM), etc. He started working in
October 2008, and has served as an Auditor of the Financial Services Group of Shenzhen Branch of Ernst &
Young Huaming Certified Public Accountants, a Financial Accountant of the Planning and Finance Department
of Wanlian Securities Co., Ltd., a Senior Manager of the Financial Management Department of China
Resources SZITIC Trust Co., Ltd. and Head of Accounting and supervisor of China Resources Energy Services
Company Limited, and an Investment Director (Deputy Minister) of Yuanzhi Venture Capital (Investment
59
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Development Department II) of Shenzhen Capital Holdings Co., Ltd. From June 2022 to present, he has served
as Chief Financial Officer of the Company.
Mr. Zou Yi: was born in 1973, is a member of the CPC, is an Economist, has obtained a master's degree in
economics. From July 1994 to September 2007, he worked at the Headquarters of Shenzhen Energy Group Co.,
Ltd., and served as Business Manager of the Finance Department, Deputy Director of the Business of the
Capital Office, and Business Director of the Secretariat of the Board of Directors; from September 2007 to
December 2017, he served as the Minister of Fund Department of Shenzhen Energy Finance Co., Ltd.; from
December 2017 to July 2019, he served as Deputy General Manager of Shenzhen Energy Finance Co., Ltd.;
from August 2017 to November 2018, he also served as a director of Huizhou SEC Fengda Electric Power Co.,
Ltd.; from August 2019 to April 2021, he served as the Director of the Office of the Board of Directors of the
Company, and from July 2020 to April 2021, he also served as the Director of the Administration Department
of the Company. From April 2021 to the present, he has served as Secretary of the Board of Directors of the
Company, and from December 2023 to the present, he has also served as the Director of the Office of the Board
of Directors.
Incumbency status in the shareholder entity
Applicable □ Not applicable
Whether to
Positions receive
Name of held in the Commencement Expiration of remuneration
Entity name
incumbent shareholder of term term allowance in the
entity shareholder
entity
Kong Shenzhen Energy November 2,
Chairman No
Guoliang Corporation 2022
Shenzhen Energy
Huang Qing Director April 24, 2019 No
Corporation
HONG KONG NAM
Kong HOI September 9,
Director No
Guoliang (INTERNATIONAL) 2022
LTD
Incumbency status in other entities
Applicable □ Not applicable
Whether to
Positions
receive
Name of held in Commencement Expiration of
Other entity name remuneration
incumbent other of term term
allowance in
entities
other entities
Shenzhen Energy
Kong
(Hong Kong) Director April 24, 2023 No
Guoliang
International Limited
60
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Director August 20, 2021
Shenzhen Guangju
Hu Ming General Yes
Energy Co., Ltd. August 4, 2021
Manager
Deputy
Shenzhen Capital September 1,
general Yes
Holdings Co., Ltd. 2016
manager
Shenzhen
Environment and December 4,
Director No
Water Investment 2020
Group Co., Ltd.
Shenzhen High-tech
Huang Qing Investment Group Director March 9, 2018 No
Co., Ltd.
Xiong'an Green
November 9,
Research Think Tank Director No
2017
Co., Ltd.
Shenzhen Institute of
Building Research Director January 31, 2018 No
Co., Ltd.
Shenzhen Yixin
Chairman October 10, 2022 No
Investment Co., Ltd.
Jiangsu Liaoyuan
Environmental
Wu Guowen Director January 28, 2022 No
Protection Technology
Co., Ltd.
Minister of
Asset
Shenzhen Capital
Managemen April 18, 2021 Yes
Holdings Co., Ltd.
t
Department
China International
November 14,
Marine Containers Director No
Sun Huirong 2022
(Group) Co., Ltd.
Shenzhen Institute of
Building Research Director April 18, 2021 No
Co., Ltd.
Shenzhen Zhenye November 24,
Director No
(Group) Co., Ltd. 2022
Shenzhen MTC Co., November 9,
Director No
Ltd. 2022
Guozhonglian Asset
Huang Xiqin Appraisal Land and Executive
May 26, 2005 Yes
Real Estate Valuation Director
Co., Ltd.
61
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Guozhonglian
Construction
December 13,
Engineering Chairman Yes
2000
Management
Consulting Co., Ltd.
Guangdong
Guozhonglianxing
Asset Appraisal Land
November 26,
and Real Estate Chairman Yes
2001
Valuation, Planning
and Consulting Co.,
Ltd.
Beijing Guozhonglian February 28,
Director No
Auction Co., Ltd. 2015
Guangdong
Construction External
January 2022 Yes
Engineering Group director
Co., Ltd.
Beijing Junzejun Law Senior September 1,
Yes
Offices Partner 2012
Chen Zetong
CALB Group Co., Independent
October 6, 2022 Yes
Ltd. director
Director,
Shenzhen Borun
Du Wei General February 1, 2020 No
Investment Co., Ltd.
Manager
Shenzhen Yuanzhi
General December 17,
Li Caijun Culture Holding Co., Yes
Manager 2022
Ltd.
General
Manager of
Shenzhen CLOU
Liao Junkai Asset June 7, 2021 Yes
Electronics Co., Ltd.
Managemen
t Center
Punishments by Securities Regulatory Authorities in the past three years on the Company's directors,
supervisors and senior officers who are currently in office and leave office during the reporting period
□Applicable Not applicable
3. Remuneration of directors, supervisors and senior officers
Decision-making procedures, basis for determination and actual payment of remuneration of directors,
supervisors and senior officers
(1) Decision-making procedures: according to the relevant provisions of the Company's Articles of Association,
the remuneration of directors and supervisors shall be determined by the General Meeting, and the remuneration
of senior officers shall be determined by the Board of Directors.
62
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
(2) Basis for determination: at present, the Company has not yet implemented a remuneration system for non-
independent directors and supervisors, and directors and employee supervisors who serve in the Company only
receive remuneration for the administrative positions they hold in the Company. The Board of Directors of the
Company determines the annual remuneration standards for the Company's senior officers based on factors such
as annual operating efficiency, job rank, etc. as well as taking into account the remuneration levels in the
industry, and determines the actual remuneration standards that can be paid based on the assessment and audit
of the annual operating performance indicators.
(3) Actual payment: the Company pays remuneration in strict accordance with the decision-making procedures
and the basis for determining the remuneration of directors, supervisors and senior officers, and the expenses
related to transportation, accommodation, research, inspection and attendance at meetings, etc. incurred by
directors and supervisors due to the performance of their duties shall be borne by the Company.
Remuneration of directors, supervisors and senior officers of the Company during the reporting period:
Unit: RMB 10,000
Whether to
Total pre-tax
receive
remuneration
Incumbency remuneration
Name Gender Age Position received
status from related
from the
parties of the
Company
Company
Kong
Male 40 Chairman Incumbent 85.67 No
Guoliang
Hu Ming Male 53 Vice Chairman Incumbent 0.00 Yes
Huang Qing Male 52 Director Incumbent 0.00 Yes
Director, General No
Chen Yuhui Male 58 Incumbent 77.66
Manager
Director, Executive
Wu Guowen Male 58 Deputy General Incumbent 72.17 No
Manager
Sun Huirong Male 40 Director Incumbent 0.00 Yes
Huang Xiqin Female 52 Independent director Incumbent 12.98 No
Chen Zetong Male 53 Independent director Incumbent 13.33 No
Du Wei Male 68 Independent director Incumbent 14.40 No
Chairman of the
Zhai Baojun Male 52 Incumbent 62.07 No
Board of Supervisors
Li Caijun Male 45 Supervisor Incumbent 0.00 Yes
Liao Junkai Male 35 Supervisor Incumbent 0.00 Yes
Qian Wenhui Male 55 Employee Supervisor Incumbent 36.43 No
Lu Yindi Female 41 Employee Supervisor Incumbent 28.78 No
Deputy general Incumbent No
Li Chao Male 52 44.81
manager
Deputy general Incumbent No
Tao Lin Male 56 46.10
manager
63
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Zhang Chief Financial Yes
Male 36 Incumbent 0.00
Xiaoyin Officer
Secretary of the No
Zou Yi Male 50 Incumbent 69.66
Board of Directors
Chairman of the No
Ye Qiliang Male 60 Leave office 18.14
Board of Supervisors
Deputy general No
Zhang Jie Female 55 Leave office 17.64
manager
Total - - - - 599.84 -
Other information
□Applicable Not applicable
VI. Directors' performance of duties during the reporting period
1. Information of the Board of Directors during the reporting period
Session Convening date Disclosure date Resolution
The Proposal on Matters Related to
Fixed Assets Inventory, the
Proposal on Amending the
The 12th Extraordinary Provisions on the Management of
Meeting of the Ninth January 16, 2023 January 18, 2023 Fixed Assets and the Proposal on
Board of Directors Using Temporarily Idle Self-owned
Funds for the Deposit of Structured
Deposits were reviewed and
approved
The Proposal on Convening the
The 13th Extraordinary
First Extraordinary General
Meeting of the Ninth March 6, 2023 March 7, 2023
Meeting for 2023 was reviewed and
Board of Directors
approved
14 proposals, including the 2022
Work Report of the Board of
The 5th Meeting of the
April 4, 2023 April 7, 2023 Directors and the 2022 Work
Ninth Board of Directors
Report of the General Manager,
were reviewed and approved
The 14th Extraordinary
The 2023 First Quarter Report was
Meeting of the Ninth April 24, 2023 April 26, 2024
reviewed and approved
Board of Directors
The Proposal on Formulating and
Amending 14 Systems, including
The 15th Extraordinary
the Compliance Management
Meeting of the Ninth June 29, 2023 July 1, 2023
Measures and the General
Board of Directors
Manager's Working Rules, was
reviewed and approved
64
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
The full text and summary of the
2023 Semi-annual Report, the
Proposal on the Establishment of
the Company's Discipline
Inspection and Supervision Office,
The 6th Meeting of the the Proposal on the Engagement of
August 23, 2023 August 25, 2023
Ninth Board of Directors an Auditor for 2023 and the
Determination of Its Remuneration
and the Proposal on Convening the
Second Extraordinary General
Meeting for 2023 were reviewed
and approved
The Proposal on the Appointment
of Mr. Li Chao as the Company's
Deputy General Manager, the
Proposal on the Appointment of Mr.
The 16th Extraordinary Tao Lin as the Company's Deputy
Meeting of the Ninth September 18, 2023 September 19, 2023 General Manager and the Proposal
Board of Directors on the Review of 2023 Operating
Performance Responsibility Letter
of the Company's Deputy General
Manager were reviewed and
approved
The Proposal on Investment in
Shenzhen New Energy Storage
The 17th Extraordinary Industry Equity Fund and Related
Meeting of the Ninth October 17, 2023 October 18, 2023 Transactions and the Proposal on
Board of Directors Convening the Third Extraordinary
General Meeting for 2023 were
reviewed and approved
The Proposal on Formulating the
Internal Audit Management
Regulations, the Proposal on
Formulating the Comprehensive
Risk and Internal Control
Management Measures and the
The 18th Extraordinary
Authorization of Relevant
Meeting of the Ninth October 25, 2023 October 27, 2023
Responsibilities, the Proposal on
Board of Directors
Amending the Financial
Management System, the Proposal
on Amending the Development
Strategy and Planning Management
Regulations, and the 2023 Third
Quarter Report were reviewed and
65
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
approved
The Proposal on Land Acquisition
and Storage of Shenzhen Nanshan
The 19th Extraordinary Power (Zhongshan) Power Co.,
Meeting of the Ninth November 7, 2023 November 8, 2023 Ltd. and the Proposal on Convening
Board of Directors the Fourth Extraordinary General
Meeting for 2023 were reviewed
and approved
The Proposal on Applying for
The 20th Extraordinary
Credit Lines from Financial
Meeting of the Ninth November 21, 2023
Institutions by Pledge of Patents
Board of Directors
was reviewed and approved
9 proposals, including the Proposal
on Amending the Articles of
Association of Shenzhen Nanshan
The 21st Extraordinary
Power Co., Ltd. and the Proposal
Meeting of the Ninth December 21, 2023 December 23, 2023
on Amending the Rules of
Board of Directors
Procedure of the Board of Directors
of Shenzhen Nanshan Power Co.,
Ltd. were reviewed and approved
2. Attendance of directors at the Board of Directors and the General Meeting
Attendance of directors at the Board of Directors and the General Meeting of Shareholders
Have you
Number of Number of
failed to
times of Number of times of Number of
Number of attend the Number of
attendance times of attendance times of
times of meetings of times of
at the on-site at the attendance
Name of absences Board of attendance
Board of attendance Board of at the
Director from the Directors at the
Directors at the Directors Board of
Board of in person General
during the Board of by Directors
Directors for two Meeting
reporting Directors correspond by proxy
consecutiv
period ence
e times
Kong 0
12 3 9 0 No 5
Guoliang
Hu Ming 12 2 9 1 0 No 0
Huang 0 0
12 3 9 No 5
Qing
Chen 0 0
12 3 9 No 5
Yuhui
Wu 0 0
12 3 9 No 5
Guowen
Sun 0
12 2 9 1 No 4
Huirong
66
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Huang 0
12 3 9 0 No 3
Xiqin
Chen 0
12 2 9 1 No 2
Zetong
Du Wei 12 3 9 0 0 No 5
Note on failure to attend the Board of Directors in person for two consecutive times
During the reporting period, there is no failure to attend the Board of Directors in person for two consecutive
times.
3. Directors' objections to matters relating to the Company
Whether the directors have raised any objections to matters relating to the Company
□Yes No
During the reporting period, the directors did not raise any objection to matters relating to the Company.
4. Other notes on directors' performance of duties
Whether the directors' recommendations to the Company have been adopted
Yes □ No
The statement that the directors' proposals relating to the Company have or have not been adopted
During the reporting period, all directors of the company have been diligent and conscientious in carrying out
their work in strict accordance with the relevant regulations of CSRC and Shenzhen Stock Exchange, as well as
the Company's Articles of Association, Rules of Procedure of the Board of Directors and other systems, paid
close attention to the Company's standardized operation and business situation, and carefully studied the various
proposals submitted to the Board of Directors for review based on the Company's actual situation, so as to
ensure scientific decision-making and safeguard the legitimate rights and interests of the Company and all
shareholders.
VII. Information of Special Committees under the Board of Directors during the reporting period
Num
Important Details
ber
Name of comments Other of the
of Conveni
the Members Content of the meeting and performance objectio
meeti ng date
Committee suggestions of duties ns (if
ngs
put forward any)
held
Kong All the
Strategy Guoliang, Reviewing the Proposal members
and Hu Ming, on Using Temporarily present
January
Investment Huang Idle Self-owned Funds agreed to
5 16, 2023
Manageme Qing, for the Deposit of the proposal
nt Chen Structured Deposits without
Committee Yuhui, objection
Wu April 4, Reviewing the 2022 All the
67
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Guowen 2023 Annual Performance members
Report of the Strategy present
and Investment agreed to
Management the proposal
Committee of the Board without
of Directors objection
1. Affiliated
committee
members,
Kong
Guoliang,
Huang Qing
and Chen
Yuhui
abstained from
All the voting;
Reviewing the Proposal
members 2. Since the
on Investment in
present number of
October Shenzhen New Energy
agreed to non-affiliated
17, 2023 Storage Industry Equity
the proposal committee
Fund and Related
without members
Transactions
objection attending the
meeting was
less than 3, the
Proposal was
directly
submitted to
the Board of
Directors of
the Company
for review.
All the
Reviewing the Proposal
members
on Land Acquisition
Novemb present
and Storage of
er 7, agreed to
Shenzhen Nanshan
2023 the proposal
Power (Zhongshan)
without
Power Co., Ltd.
objection
Reviewing the Proposal All the
on the Adjustment of members
Decemb
the Partnership present
er 21,
Agreement of Zhuhai agreed to
2023
Hengqin Zhuozhi the proposal
Investment Partnership without
68
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
(Limited Partnership) objection
and the Signing of the
Supplemental
Agreement to the
Entrusted Management
Agreement
All the
Reviewing the 2022
members
Annual Performance
present
April 4, Report of the
agreed to
2023 Nomination Committee
the proposal
of the Board of
without
Directors
objection
Chen 1. Reviewing the
Nominatio
Zetong, Proposal on the All
n 2
Hu Ming, Appointment of Mr. Li members
Committee
Du Wei Chao as the Company's present at
Septemb Deputy General the meeting
er 18, Manager 2. Reviewing agreed to all
2023 the Proposal on the the
Appointment of Mr. Tao proposals
Lin as the Company's without
Deputy General objection
Manager
1. Reviewing the 2022
All
Annual Performance
members
Report of the
present at
Remuneration and
the meeting
April 4, Assessment Committee
agreed to all
2023 of the Board of
the
Remunerati Huang Directors 2. Reviewing
proposals
on and Xiqin, the Proposal on the
without
Assessmen Wu 2 2023 Annual
objection
t Guowen, Remuneration Plan
Committee Du Wei All the
Reviewing the Proposal
members
on the Review of 2023
Septemb present
Operating Performance
er 18, agreed to
Responsibility Letter of
2023 the proposal
the Company's Deputy
without
General Manager
objection
Huang Listening to and All the
Audit January
Xiqin, 7 discussing the members
Committee 18, 2023
Sun Communication Letter present at
69
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Huirong, between Certified the meeting
Chen Public Accountants and have no
Zetong Those Charged with objection
Governance submitted
by Lixinzhonglian
CPAS
1. Reviewing the 2022
Annual Financial
Report 2. Reviewing
the 2022 Annual Audit
Report on Internal
Control 3. Reviewing
the Proposal on the
2022 Annual Financial
Final Report 4. All
Reviewing the Proposal members
on Provision for present at
Impairment of Assets the meeting
April 4,
for 2022 5. Reviewing agreed to all
2023
the Proposal on the the
Profit Distribution Plan proposals
for 2022 6. Reviewing without
the Proposal on objection
Submitting for Review
the 2022 Evaluation
Report on Internal
Control 7. Reviewing
the 2022 Annual
Performance Report of
the Audit Committee of
the Board of Directors
1. Reviewing the 2023
First Quarter Report 2. All
Listening to the members
Financial Settlement present at
Report for the First the meeting
April 24,
Quarter of 2023 3. agreed to all
2023
Listening to the Work the
Report of Audit and proposals
Risk Control without
Department for the First objection
Quarter of 2023
August 1. Reviewing the full All
23, 2023 text and summary of the members
70
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
2023 Semi-annual present at
Report 2. Reviewing the meeting
the Proposal on the agreed to all
Engagement of an the
Auditor for 2023 and proposals
the Determination of Its without
Remuneration 3. objection
Listening to the 2023
Semi-annual Financial
Performance Report 4.
Listening to the Work
Report of Audit and
Risk Control
Department in the
Second Quarter of 2023
All the
Reviewing the Proposal
members
on Investment in
present
October Shenzhen New Energy
agreed to
17, 2023 Storage Industry Equity
the proposal
Fund and Related
without
Transactions
objection
1. Reviewing the
Proposal on
Formulating the
Internal Audit
Management
Regulations 2.
Reviewing the Proposal
All
on Formulating the
members
Comprehensive Risk
present at
and Internal Control
the meeting
October Management Measures
agreed to all
25, 2023 and the Authorization of
the
Relevant
proposals
Responsibilities 3.
without
Reviewing the Proposal
objection
on Amending the
Financial Management
System 4. Reviewing
the 2023 Third Quarter
Report 5. Listening to
the Financial
Performance Report for
71
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
the Third Quarter of
2023 6. Listening to the
Work Report of Audit
and Risk Control
Department for the
Third Quarter of 2023
All the
Listening to the 2023 members
Novemb
Audit Plan of Shenzhen present at
er 6,
Nanshan Power Co., the meeting
2023
Ltd. have no
objection
8. Work of the Board of Supervisors
Whether the Board of Supervisors has identified any risks to the Company in its supervisory activities during
the reporting period
□Yes No
The Board of Supervisors has no objection to the supervision matters during the reporting period.
9. Employees
1. Number of employees, professional composition and education background
Number of active employees of parent company at the
239
end of the reporting period
Number of active employees of major subsidiaries at
45
the end of the reporting period
Total number of active employees at the end of the
284
reporting period
Total number of employees receiving remuneration in
281
the current period
Number of retired employees whose the parent
company and major subsidiaries have to bear the 0
expenses
Professional composition
Category Number
Production staff 71
Salesperson 7
Technical staff 45
Financial staff 14
Administrative staff 147
Total 284
Education background
Category Number
72
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
High school and below 28
Junior college and technical secondary school
94
education
Bachelor's degree 137
Master's degree or above 25
Total 284
2. Remuneration policy
The Board of Directors implements the principle of annual remuneration quota accrual for the company based
on fixed basic remuneration. The remuneration of the Chairman shall be submitted to the General Meeting for
approval and determination after being reviewed and approved by the Board of Directors; The remuneration of
senior officers at the level of General Manager and Deputy General Manager shall be formulated by the
Remuneration and Assessment Committee of the Board of Directors and submitted to the Board of Directors for
approval and determination. The remuneration of other personnel is authorized to be managed by the
Company's management team based on the principles of "fixing salary based on position" and "getting paid
according to work". Within the annual remuneration quota approved by the Board of Directors, the Company
strictly controls the remuneration costs, establishes a remuneration incentive mechanism linked to the
performance of the employees, formulates the remuneration standards, distribution plans, assessment and
rewards and punishment methods for the personnel at all levels, and is responsible for organizing and
implementing them, so as to give full play to the role of the incentive role of the remuneration.
3. Training plan
The Company attaches great importance to employee training and has established a more complete training
system. By strengthening employee training, it improves the job skills and comprehensive quality of the
employees, better meets the needs of the Company's operation and management for talent, and at the same time
cultivates reserve talents for the Company's sustainable development. During the reporting period, in terms of
safety training, the Company has organized safety education and training, emergency rescue drills, emergency
response capability training, etc. at all levels of the Company in accordance with the Work Safety Law and
other laws and regulations in respect of safety training, so as to improve the safety awareness, accident
prevention capabilities and business level of cadres and employees at all levels. In terms of on-the-job training,
the Company has adopted a combination of expatriate learning and internal training, carried out certified on-the-
job training for key business and technical positions to improve the capabilities of employees to perform their
duties, and also relied on the gas turbine simulation training base to improve the practical operation and
adaptability of power plant operators. In terms of training and learning in Party members, the Company's Party
Committee and Party Branch have strictly followed the requirements of the higher Party organizations,
continued to strengthen education and learning in Party members through a combination of online and offline
methods, and implemented daily personal self-study through the distribution of books and materials. At the
same time, they have strictly implemented the "Three Meetings and One Lesson" system, enriched the form of
learning and education through diversified forms such as organizing visits to red bases, special trainings, study
tours, and "Party lectures given by the Secretaries", etc., so as to ensure that the Party organization plays the
role of strong backing and reliable support, and leads the majority of the Party members to play a vanguard and
exemplary role.
73
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
4. Outsourcing of labor
□Applicable Not applicable
X. Profit distribution and capitalization of capital reserve of the Company
The formulation, implementation or adjustment of profit distribution policies, especially cash dividend policies,
during the reporting period
□Applicable Not applicable
During the reporting period, the Company are profitable and the parent company's profits available for
distribution to shareholders are positive, but no cash dividend distribution plan has been put forward
Applicable □ Not applicable
In view of the fact that the Company is still facing tremendous operating pressure and is in a critical period of
simultaneous promotion of operation and transformation and development work of assets in stock, it is difficult
to meet the requirements for profit distribution conditions in the Company's Articles of Association. Therefore,
the Company proposes not to make any profit distribution in 2023. The undistributed profits of the parent
company will be mainly used to supplement the working capital and meet operational needs to ensure the
achievement of operating objectives.
Profit distribution and capitalization of capital reserve during the reporting period
□Applicable Not applicable
The Company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share
capital during the year.
XI. Implementation of the Company's equity incentive plan, employee stock ownership plan or other
employee incentive measures
□Applicable Not applicable
The company has no equity incentive plan, employee stock ownership plan or other employee incentive
measures and their implementation during the reporting period.
XII. Construction and implementation of the internal control system during the reporting period
1. Construction and implementation of internal control
In accordance with the provisions of the Basic Standards Internal Control of Enterprises and its supporting
guidelines, the Company timely updates and improves the Company's internal control system, establishes a set
of scientifically designed and applicable internal control system, and supervises and evaluates the Company's
internal control management by the Audit Committee and the Internal Audit Department, which together form
the Company's risk-based internal control management organization system. Through the operation, analysis
and evaluation of the internal control system, the Company has effectively prevented risks in operation and
management and promoted the realization of internal control objectives.
2. Details of major defects in internal control identified during the reporting period
□Yes No
74
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
XIII. Management and control of subsidiaries by the Company during the reporting period
The Company has formulated the Regulations on Property Rights Management, which clarifies the relationship
between responsibilities, rights and benefits in the property rights management of affiliated enterprises, ensures
that assets are clearly attributed, rights and responsibilities are clearly defined, promotes the further scientific,
standardized and legalized management of property rights, and meets the needs of the Company's overall
development strategy.
XIV. Evaluation Report on Internal Control or Audit Report on Internal Control
1. Evaluation Report on Internal Control
Date of disclosure of full text of
Evaluation Report on Internal April 12, 2024
Control
Full-text disclosure index of
2023 Evaluation Report on Internal Control, cninfo.com.cn
Evaluation Report on Internal
http://www.cninfo.com.cn
Control
Ratio of the total assets of the unit
included in the evaluation scope to
93.10%
the total assets of the Company's
consolidated financial statements
Ratio of operating revenue of the
unit included in the evaluation
scope to operating revenue of the 100.00%
Company's consolidated financial
statements
Defect identification standards
Category Financial report Non-financial report
Major defects: under major Major defects: under major
business activities, many business activities, many
consolidated statements companies consolidated statements companies
have serious defects; or a few have serious defects; or a few
consolidated statements companies consolidated statements companies
have serious defects, but the have serious defects, but the
companies with serious defects are companies with serious defects are
the main participant in the major the main participant in the major
Qualitative standards business activities; business activities;
Great defects: under major Great defects: under major
business activities, a few business activities, a few
consolidated statements companies consolidated statements companies
have serious defects, and the have serious defects, and the
companies with serious defects are companies with serious defects are
not the main participants in the not the main participants in the
major business activities; or major business activities; or
multiple consolidated statements multiple consolidated statements
75
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
companies have moderate defects; companies have moderate defects;
or a few consolidated statements or a few consolidated statements
companies have moderate defects, companies have moderate defects,
but the companies with moderate but the companies with moderate
defects are the main participants in defects are the main participants in
the major business activities; the major business activities;
General defect: in major business General defect: in major business
activities, a few companies sharing activities, a few companies sharing
consolidated statements have consolidated statements have
moderate defect, and these moderate defect, and these
companies with moderate defect companies with moderate defect
are not the main participants in the are not the main participants in the
major business activities; or major business activities; or
companies share consolidated companies share consolidated
statements only have common statements only have common
defects; or there are no defects in defects; or there are no defects in
internal control in major business internal control in major business
activities, with only defects in activities, with only defects in
internal control in non-major internal control in non-major
business activities. business activities.
Major defects: misstated amount is Major defect: amount of direct loss
≥ 0.5% of total assets in the ≥ 0.5% of total assets in the
consolidated statements; consolidated statements;
great defect: 0.2% of total assets in great defect: 0.2% of total assets in
the consolidated statements ≤ the consolidated statements ≤
Quantitative standards misstated amount < 0.5% of total amount of direct loss < 0.5% of
assets in the consolidated total assets in the consolidated
statements; statements;
general defect: misstated amount < general defect: amount of direct
0.2% of total assets in the losses < 0.2% of total assets in the
consolidated statements. consolidated statements.
Number of major defects in
0
financial reports
Number of major defects in non-
0
financial reports
Number of great defects in
0
financial reports
Number of great defects in non-
0
financial reports
2. Audit Report on Internal Control
Applicable □ Not applicable
Considerations in Audit Report on Internal Control
76
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
The accounting firm believes that Shenzhen Nanshan Power Co., Ltd. has maintained effective financial report
on internal control in all material aspects in accordance with the Basic Standards for Enterprise Internal Control
and relevant regulations.
Disclosure of Audit Report on Internal Control Disclosed
Full-text disclosure date of the Audit Report on
April 12, 2024
Internal Control
Full-text disclosure index of the Audit Report on 2023 Audit Report on Internal Control can be found
Internal Control on http://www.cninfo.com.cn
Opinion type of the internal audit report Standard unqualified opinion
Whether there are major defects in the non-financial
No
report
Whether the accounting firm issues an Audit Report on Internal Control with non-standard opinions
□Yes No
Whether the Audit Report on Internal Control issued by the accounting firm is consistent with the self-
evaluation report of Board of Directors
Yes □ No
XV. Rectification of issues found in the self-examination of the special action on corporate governance of
the listed company
The self-examination and rectification of the special action on corporate governance of the listed company has
been completed in 2021. During the reporting period, the Company strictly followed the relevant laws and
regulations, closely focused on the Company's development strategy, diligently performed its obligations and
exercised its powers, conscientiously implemented various resolutions of the General Meeting, actively and
effectively carried out various tasks of Board of Directors, and effectively safeguarded the legitimate rights and
interests of the Company and all its shareholders.
77
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Section V Environmental and social responsibilities
I. Major environmental protection issues
Whether the listed company and its subsidiaries are key pollutant-discharging units announced by the
environmental protection department
Yes □ No
1. Policies and industry standards related to environmental protection
The Company belongs to the thermal power generation industry under the national economic classification 4411,
and is currently implementing the Emission Standards of Air Pollutants for Thermal Power Plants GB-13223-
2011. At the same time, its affiliated Nanshan Power Plant strictly controls nitrogen oxide emissions in
accordance with the 2018 "Shenzhen Blue" Sustainable Action Plan.
2. Administrative licenses for environmental protection
Nanshan Power Plant, the Company's subsidiary, has obtained a pollutant discharge license issued by the
Nanshan Administration Bureau of Shenzhen Ecological Environment Bureau, with license No.
of:91440300764983799T001P. The subsidiary Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. has
obtained a pollutant discharge license issued by the Zhongshan Ecological Environment Bureau, with license
No. of: 914420007564567614001P.
3. Industry emission standards and specific information on the pollutant emissions involved in production and
operating activities
Name
Types Names
of the Emissi Polluta
of main of main Numbe Distrib Total
compa on nt Excessi
polluta polluta Emissi r of ution of Total approv
ny or concent emissio ve
nts and nts and on dischar dischar emissio ed
name ration/i n emissio
specific specific mode ge ge ns emissio
of its ntensit standar n
polluta polluta outlets outlets ns
subsidi y ds
nts nts
ary
"Shenz
Concen
Shenzh hen
trated Inside
en Blue"
emissio the
Nansha Nitroge Nitroge emissio
n of Nansha <15 46.59 457.5
n n n 2 n None
boiler n mg/m tons tons
Power oxides oxides standar
and Power
Co., d
chimne Plant
Ltd. <15mg/
y
m
Shenzh Concen Inside "Shenz
Nitroge Nitroge
en New trated the <15 hen 20.37 228.75
n n 1 None
Power emissio Nansha mg/m Blue" tons tons
oxides oxides
Industri n of n emissio
78
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
al Co., boiler Power n
Ltd. and Plant standar
chimne d
y <15mg/
m
Shenzh
en Concen Inside
Nansha trated the
n emissio Zhongs
Nitroge Nitroge
Power n of han <50 GB132 9.65 803.06
n n 2 None
(Zhong boiler Nanlan mg/m 23 tons tons
oxides oxides
shan) and g
Power chimne Power
Co., y Plant
Ltd.
4. Treatment of pollutants
Shenzhen Nanshan Power Co., Ltd. has two sets of 9E units and Shenzhen New Power Industrial Co., Ltd. has
one set of 9E unit, both of which use General Electric's DLN1.0+ low-nitrogen combustion system. Shenzhen
Nanshan Power (Zhongshan) Power Co., Ltd. has two sets of 9E units, which adopt General Electric's DLN1.0
low-nitrogen combustion system. During the reporting period, the Company and its subsidiaries strictly
complied with national environmental protection laws and regulations, with all pollutants discharged meeting
the national emission standards. There were no environmental pollution accidents, nor were there any penalties
imposed by relevant departments due to major environmental problems.
5. Emergency plan for environmental emergencies
The emergency plan for sudden environmental incidents has been filed with the Guangdong Provincial
Environmental Protection Department and the corresponding municipal environmental protection bureau.
6. Environmental self-monitoring plan
An environmental self-monitoring plan has been prepared and reviewed by the environmental protection
department; the monitoring data was disclosed timely on the environmental protection department’s website.
7. Information on investment in environmental governance and protection and payment of environmental
protection tax
The Company attaches great importance to environmental protection and strengthens on-site management by
carrying out special tasks such as the investigation of potential environmental risks and standardized
management of hazardous waste; in addition, the Company continues to increase investment on the
maintenance of environmental protection facilities and improves environmental protection infrastructure. All
these initiatives have greatly improved the level of pollution prevention and control. The Company pays
environmental protection tax in strict accordance with the Presidential Order No. 61 of the Environmental
Protection Tax Law of the People's Republic of China and other relevant laws and regulations.
8. Measures taken to reduce carbon emissions during the reporting period and the results
79
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Applicable □ Not applicable
During the reporting period, the Company's affiliated power plants continued to improve unit efficiency and
reduce carbon emissions by taking technical transformation measures such as unit condenser technical and
turbine high-pressure bypass valve technology.
9. Administrative penalties for environmental issues during the reporting period
None
10. Other environmental information that shall be disclosed
None
11. Other environmental protection related information
None
12. The Company shall comply with the disclosure requirements of power supply industry stipulated in the
Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3 - Industry Information
Disclosure.
None
13. Information on environmental accidents occurring in the listed company
None
II. Social responsibilities
In 2023, although the Company faced many challenges in production, operation and management, the Company
had the courage to assume social responsibilities, actively ensured power supply when the cost and price of
power generation were seriously inverted, and conscientiously performed its social responsibilities to the best of
its ability. In terms of work safety, the Company attached great importance to work safety by identifying the
main disparities. We vigorously promoted the improvement of employees' safety responsibility awareness and
safety skills, effectively enhanced their work initiative, and maintained the "Five Nos" goal of work safety. In
terms of environmental protection, the Company strictly complied with national and local environmental
protection regulations, and always adhered to the concept of clean power generation and circular economy
development. All environmental protection work was effectively implemented, with environmental protection
emission meeting the requirement and no environmental pollution accidents. In terms of charity assistance, the
Company actively implemented Shenzhen's consumption poverty alleviation policy, participating in
consumption poverty alleviation with a total contribution of RMB 142,200. We fulfilled social responsibilities
to the best of our ability.
III. Consolidation and enhancing of the results of poverty eradication and rural revitalization
In 2023, the Company actively responded to the calls of the Party Central Committee and the State Council on
poverty alleviation and rural revitalization. According to Shenzhen's consumption poverty alleviation policy, we
actively participated in consumption poverty alleviation despite the difficulties encountered in the Company's
production and operation. The total amount of contribution regarding consumption poverty alleviation was
RMB 142,200.
80
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
81
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Section VI Important matters
I. Fulfillment of commitments
1. Commitments made by the Company’s actual controller, shareholders, related parties, acquirers and
the Company that have been fulfilled during the reporting period and have not yet been fulfilled by the
end of the reporting period
□Applicable Not applicable
During the reporting period, there were no commitments made by the Company’s actual controller, shareholders,
related parties, acquirers and the Company that were fulfilled during the reporting period and had not yet been
fulfilled by the end of the reporting period.
2. If there is a profit forecast for the Company's assets or projects and the reporting period is still in the
profit forecast period, the company shall explain that the assets or projects have met the original profit
forecast and the reasons for that.
□Applicable Not applicable
II. Non-operating capital occupation of the listed company by controlling shareholders and other related
parties
□Applicable Not applicable
There was no non-operational occupation of funds by the controlling shareholder or other related parties of the
listed company during the reporting period.
III. Illegal external guarantees
□Applicable Not applicable
The Company had no illegal external guarantees during the reporting period.
IV. Statement of the Board of Directors on the latest "Non-standard Audit Report"
□Applicable Not applicable
V. Explanation of the "Non-standard Audit Report" issued by the accounting firm for the reporting
period by the Board of Directors, Board of Supervisors and independent directors (if any)
□Applicable Not applicable
VI. Description of changes in accounting policies, accounting estimates or correction of major accounting
errors compared with the previous year's financial report
□Applicable Not applicable
The company had no changes in accounting policies, accounting estimates or correction of major accounting
errors during the reporting period.
82
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
VII. Explanation of changes in the scope of consolidated statements compared with the previous year's
financial report
Applicable □ Not applicable
As of December 31, 2023, there were a total of 8 entities included in the Company's consolidated financial
statements, one less than at the beginning of the period. The main reason was that during the reporting period,
the business strategy of Shenzhen Nanshan Power Zhongshan Company adjusted. From the perspective of the
Company's subsequent business strategy, Shenzhen Nanshan Power (Zhongshan) Warehousing Co., Ltd., the
Company's controlling subsidiary, no longer has the necessity to survive. As a result, we applied for the
cancellation of registration for the company on December 13, 2023.
VIII. Appointment and dismissal of the accounting firm
Currently employed accounting firm
Name of the domestic accounting firm Lixinzhonglian CPAS (Special General Partnership)
Remuneration of the domestic accounting firm (RMB
73
10,000)
Length of audit services provided by the domestic
5
accounting firm
Name of certified public accountant of domestic
Cao Wei and Zou Yang
accounting firm
Length of audit services provided by certified public
5
accountant of the domestic accounting firm
Whether to hire a new accounting firm during the current period
□Yes No
Recruitment of accounting firm, financial consultants or sponsors for internal control audit
Applicable □ Not applicable
During the reporting period, the Company hired Lixinzhonglian CPAS (Special General Partnership) as the
Company's accounting firm for internal control audit, and paid an audit fee of RMB 230,000.
IX. Possible delisting after the disclosure of the annual report
□Applicable Not applicable
X. Matters related to bankruptcy and reorganization
□Applicable Not applicable
The Company had no bankruptcy or reorganization related matters during the reporting period.
XI. Major litigation and arbitration matters
□Applicable Not applicable
The Company had no major litigation or arbitration matters during the reporting period.
83
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
XII. Punishment and rectification
□Applicable Not applicable
The Company had no penalties or rectifications during the reporting period.
XIII. Integrity of the Company, its controlling shareholders and actual controllers
Applicable □ Not applicable
During the reporting period, the Company and the its largest shareholder did not fail to fulfill the effective court
judgments, or had large amounts of debts that were not repaid at maturity, and were in good standing in terms of
integrity. The company had no controlling shareholder or actual controller during the reporting period.
XIV. Major related transactions
1. Related transactions related to daily operations
□Applicable Not applicable
The Company had no related transactions related to daily operations during the reporting period.
2. Related transactions involving acquisition or sale of assets or equity
□Applicable Not applicable
The Company had no related transactions involving acquisition or sale of assets or equity during the reporting
period.
3. Related transactions involving joint external investment
Applicable □ Not applicable
Total
Registered Net assets Net profit
Main assets of
Name of capital of of the of the
Co- Relationshi business of the
the the investee investee investee
investors p the investee
investee (RMB (RMB (RMB
investee (RMB
10,000) 10,000) 10,000)
10,000)
Shenzhen Use private
Capital Shenzhen equity
Holdings New funds to
Co., Ltd., Energy engage in
Shenzhen Storage equity
Yuanzhi Related Industry investment
310,227.1
Energy legal Equity s, 621,000 310,227.16 -272.84
6
Storage person Fund investment
Private Partnership manageme
Equity (Limited nt, asset
Fund Partnership manageme
Manageme ) nt and
nt Co., other
84
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Ltd., etc. activities
(operating
activities
can only be
carried out
after
registering
with the
Asset
Manageme
nt
Associatio
n of China)
4. Related credit and debt accounts
□Applicable Not applicable
The Company had no related credit and debt accounts during the reporting period.
5. Transactions with financial companies that have relationship with the Company
□Applicable Not applicable
There were no deposits, loans, credit or other financial business between the Company and financial companies
with relationship and related parties.
6. The transactions between financial companies controlled by the Company and related parties
□Applicable Not applicable
There were no deposits, loans, credit or other financial business between financial companies controlled by the
Company and related parties.
7. Other major related transactions
□Applicable Not applicable
The Company had no other major related transactions during the reporting period.
XV. Major contracts and their performance
1. Custody, contracting and lease matters
(1) Custody
□Applicable Not applicable
The Company had no custody during the reporting period.
(2) Contracting
□Applicable Not applicable
85
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
The Company had no contracting during the reporting period.
(3) Lease
□Applicable Not applicable
The Company had no lease during the reporting period.
2. Material guarantee
□Applicable Not applicable
The Company had no material guarantee during the reporting period.
3. Entrusting others to asset management
(1) Entrusted wealth management
Applicable □ Not applicable
Overview of entrusted wealth management during the reporting period
Unit: RMB 10,000
Overdue
Sources of
Amount of Overdue recovery of the
funds for Outstanding
Type entrusted wealth amount not amount of
entrusted wealth balance
management recovered impairment
management
accrued
Bank financial Self-owned
21,001.37 0.00 0.00 0.00
products funds
Total 21,001.37 0.00 0.00 0.00
Specific cases of high-risk entrusted wealth management with a large single amount or low security and poor
liquidity
□Applicable Not applicable
The principal of entrusted wealth management is unlikely to be recovered or other cases that may lead to
impairment
□Applicable Not applicable
(2) Entrusted loans
□Applicable Not applicable
The Company had no entrusted loans during the reporting period.
4. Other major contracts
□Applicable Not applicable
86
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
XVI. Description of other major matters
Applicable □ Not applicable
1. Land of Nanshan Power Plant: in June 2023, the Company learned about the Notice of Shenzhen Municipal
Bureau of Planning and Natural Resources on Issuing the 2023 Shenzhen Urban Renewal and Land Preparation
Plan on the official website of the Shenzhen Planning and Natural Resources Bureau. According to the relevant
content in its appendix, 2023 Shenzhen Urban Renewal and Land Preparation Plan still includes the Land of
Nanshan Power Plant and related content. (For details, please see the Announcement on Shenzhen Municipal
Bureau of Planning and Natural Resources Issuing the 2023 Shenzhen Urban Renewal and Land Integration
Plan disclosed by the Company in the Securities Times and Jcninfo.com.cn, with announcement No. of: 2023-
023)
2. Matters of obtaining government subsidies: on November 21, 2023, the Company received a financial relief
subsidy of RMB 25.4 million from the Shenzhen Municipal Government dedicated for gas-fired thermal power
plants. (For details, please refer to the Announcement on Obtaining Government Subsidies disclosed by the
Company in the Securities Times and cninfo.com.cn, with announcement No. of: 2023-050)
Except for the above matters, the refunds due to the Company's "Project Technical Transformation Benefit
Fund" had no progress or change during the reporting period.
XVII. Major events of the Company's subsidiaries
Applicable □ Not applicable
1. Matters concerning the shutdown of two sets of 9E gas-fired units of Shenzhen Nanshan Power Zhongshan
Company: on November 6, 2023, the Company received Energy Bureau of Guangdong Province's Letter on
Matters Related to the Shutdown of the Unit of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd.
Nanlang Power Plant (YNDLH [2023] No. 672). According to the Letter, Energy Bureau of Guangdong
Province agreed to shut down two sets of 180MW gas-fired cogeneration units of the Shenzhen Nanshan Power
(Zhongshan) Power Co., Ltd. Nanlang Power Plant. (For details, please see the Announcement on the Progress
of the Shutdown and Retirement of Two Sets of 9E Gas-fired Units of the Company's Subsidiary Shenzhen
Nanshan Power (Zhongshan) Power Co., Ltd. disclosed by the Company in Securities Times and cninfo.com.cn,
with announcement No. of: 2023-045)
2. Land acquisition and storage matters of Shenzhen Nanshan Power Zhongshan Company: the Company held
the 19th Extraordinary Meeting of the Ninth Board of Directors, the 10th Extraordinary Meeting of the Ninth
Board of Supervisors on November 7, 2023, and the Fourth Extraordinary General Meeting of 2023 on
November 24, 2023. These meetings reviewed and adopted the Proposal on Land Acquisition and Storage of
Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd., and agreed the State-owned Land Use Right
Requisition Agreement and Relocation Compensation Agreement signed by Shenzhen Nanshan Power
Zhongshan Company and Zhongshan Cuiheng New District Management Committee. On December 15, 2023,
the company disclosed the "Progress Announcement on Land Acquisition and Storage Related Matters of the
Controlling Subsidiary Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. " Shenzhen Nanshan Power
Zhongshan Company and Cuiheng New District Management Committee formally signed the " state-owned
land use right Requisition Agreement" and " relocation compensation agreement ". On December 20, 2023, the
Company disclosed the Announcement on the Progress of Matters Related to Land Acquisition and Storage of
the Company's Subsidiary Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd., indicating that Shenzhen
87
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Nanshan Power Zhongshan Company received the first payment of the first phase of compensation in the
amount of RMB 104,000,000. (For details, please refer to the Announcement on Resolutions of the 19th
Extraordinary Meeting of the Ninth Board of Directors, the Announcement on Resolutions of the 10th
Extraordinary Meeting of the Ninth Board of Supervisors, Announcement on Matters Related to Land
Acquisition and Storage of the Company's Subsidiary Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd.,
Announcement on Resolutions of the Fourth Extraordinary General Meeting in 2023, and Announcement on the
Progress of Matters Related to Land Acquisition and Storage of the Company's Subsidiary Shenzhen Nanshan
Power (Zhongshan) Power Co., Ltd. disclosed by the Company in Securities Times and cninfo.com.cn, with
announcement No. of: 2023-046, 047, 048, 051, 52, 53)
88
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Section VII Changes in shares and shareholders
I. Changes in shares
1. Changes in shares
Unit: share
Before the
Increase or decrease in the change (+, -) After the change
change
Provident
Issuance
Quantit Bonus fund
Ratio of new Others Subtotal Quantity Ratio
y shares conversio
shares
n
I. Shares
subject to 0.0022 0.0022
12,994 12,994
selling % %
restrictions
1. State
shareholdin
g
2. State-
owned legal
person
shareholdin
g
3. Other
domestic 0.0022 0.0022
12,994 12,994
shareholdin % %
gs
Including:
domestic
legal person
shareholdin
g
Domestic
natural
0.0022 0.0022
person 12,994 12,994
% %
shareholdin
g
4. Foreign
shareholdin
g
Including:
foreign
89
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
legal person
shareholdin
g
Foreign
natural
person
shareholdin
g
II. Shares
without 602,74 99.997 602,749, 99.9978
selling 9,602 8% 602 %
restrictions
1. RMB
338,89 56.223 338,895, 56.2236
ordinary
5,156 6% 156 %
shares
2.
Domestic-
263,85 43.774 263,854, 43.7742
listed
4,446 2% 446 %
foreign
shares
3. Overseas-
listed
foreign
shares
4. Others
III. Total
602,76 100.00 602,762, 100.00
number of
2,596 % 596 %
shares
Reasons for changes in shares
□Applicable Not applicable
Approval status of changes in shares
□Applicable Not applicable
Transfer status of changes in shares
□Applicable Not applicable
The impact of changes in shares on basic earnings per share and diluted earnings per share, net assets per share
attributable to the Company's ordinary shareholders, and other financial indicators in the most recent year and
the most recent period
□Applicable Not applicable
Other information that the Company deems necessary or that securities regulators require to be disclosed
90
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
□Applicable Not applicable
2. Changes in shares with selling restrictions
□Applicable Not applicable
II. Issuance and listing of securities
1. Securities issuance (excluding preferred shares) during the reporting period
□Applicable Not applicable
2. Explanation of changes in the Company's total number of shares and shareholder structure, and
changes in the Company's asset and liability structure
□Applicable Not applicable
3. Existing internal employee shares
□Applicable Not applicable
III. Shareholders and actual controllers
1. Number of the Company's shareholders and shareholding status
Unit: share
Total
Total number
number of
of preferred
Total Total number of
ordinary sharehold
number preferred
sharehold ers whose
of shareholders whose
ers at the voting
ordinary voting right were
end of the right
sharehold 48,884 54,471 0 restored at the end of 0
previous were
ers at the the previous month
month restored
end of the before the annual
before the at the end
reporting report disclosure date
annual of the
period (if any) (see Note 8)
report reporting
disclosure period (if
date any) (see
Note 8)
Shareholding status of shareholders holding more than 5% of the shares or the top 10 shareholders (excluding
shares lent through refinancing)
Number Increases Number Number Pledge, marking or
of shares and of shares of shares freezing
Name of Nature of
Sharehold held at decreases held with with
sharehold sharehold
ing ratio the end of during selling selling Share
er er Quantity
the the restriction restriction status
reporting reporting s s
91
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
period period
HONG
KONG
NAM Overseas
92,123,24 92,123,24
HOI legal 15.28%
8 8
(INTERN person
ATIONA
L) LTD
Shenzhen State-
Guangju owned 73,666,82 73,666,82
12.22%
Industrial legal 4 4
Co., Ltd. person
Shenzhen State-
Energy owned 65,106,13 65,106,13
10.80%
Corporati legal 0 0
on person
BOCI
SECURI Overseas
11,522,04 - 11,522,04
TIES legal 1.91%
8 2,586,990 8
LIMITE person
D
Domestic
Zeng
natural 1.19% 7,159,600 7,159,600
Ying
person
China
Merchant
s Overseas
Securities legal 0.88% 5,330,854 -99,874 5,330,854
(Hong person
Kong)
Co., Ltd.
Meiyi Domestic
Investme non-state-
nt Real owned 0.87% 5,223,200 5,223,200
Estate legal
Co., Ltd. persons
LISHER Overseas
YNZHA natural 0.66% 4,005,959 1,441,759 4,005,959
NMING person
Haitong
Internatio Overseas
nal legal 0.65% 3,908,357 3,908,357
Securities person
Company
92
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Limited-
Account
Client
Domestic
Huang
natural 0.64% 3,866,500 3,866,500
Yilong
person
Strategic investors or
general legal persons
becoming the top 10
shareholders due to None
allotment of new
shares (if any) (see
Note 3)
Explanation of the
1. Shenzhen Energy Corporation holds 100% equity of HONG KONG NAM HOI
above-mentioned
(INTERNATIONAL) LTD
shareholders'
2. The Company does not know whether the other above-mentioned public
relationship or
shareholders are in relationship or are persons in concerted actions
concerted actions
Explanation of the
circumstances in
which the above-
mentioned
None
shareholders involve
entrusted voting right
and abstention from
voting right
Special note on the
existence of a special
repurchase account
None
among the top 10
shareholders (if any)
(see Note 10)
Shareholding status of the top 10 shareholders without selling restrictions
Type of shares
Number of shares without selling restrictions held at the end
Name of shareholder Type of
of the reporting period Quantity
shares
HONG KONG NAM Domesti
HOI c listed 92,123,24
92,123,248
(INTERNATIONAL) foreign 8
LTD shares
RMB
Shenzhen Guangju 73,666,82
73,666,824 ordinary
Industrial Co., Ltd. 4
shares
Shenzhen Energy 65,106,130 RMB 65,106,13
93
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Corporation ordinary 0
shares
Domesti
BOCI SECURITIES c listed 11,522,04
11,522,048
LIMITED foreign 8
shares
Domesti
c listed
Zeng Ying 7,159,600 7,159,600
foreign
shares
Domesti
China Merchants
c listed
Securities (Hong 5,330,854 5,330,854
foreign
Kong) Co., Ltd.
shares
RMB
Meiyi Investment Real
5,223,200 ordinary 5,223,200
Estate Co., Ltd.
shares
Domesti
LISHERYNZHANMI c listed
4,005,959 4,005,959
NG foreign
shares
Haitong International Domesti
Securities Company c listed
3,908,357 3,908,357
Limited-Account foreign
Client shares
RMB
Huang Yilong 3,866,500 ordinary 3,866,500
shares
Explanation of
relationship or
concerted action
among the top 10
shareholders of
tradable shares 1. Shenzhen Energy Corporation holds 100% equity of HONG KONG NAM HOI
without selling (INTERNATIONAL) LTD
restrictions, and 2. The Company does not know whether the other above-mentioned public
between the top 10 shareholders are in relationship or are persons in concerted actions
shareholders of
tradable shares
without selling
restrictions and the top
10 shareholders
Description of the top
None
10 ordinary
94
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
shareholders'
participation in margin
trading and securities
lending business (if
any) (see Note 4)
The top ten shareholders participating share lending through refinancing
□Applicable Not applicable
Changes in the top 10 shareholders compared with the previous period
Applicable □ Not applicable
Unit: share
Changes in the top 10 shareholders compared with the end of the previous period
Number of shares held in
Number of shares lent through shareholders' general accounts and
New/withdraw
refinancing and not yet returned at credit accounts, and shares lent
Shareholder al during the
the end of the period through refinancing and not yet
name (full name) reporting
returned at the end of the period
period
Ratio to total Ratio to total
Total quantity Total quantity
share capital share capital
Li Baoqin Withdrawal 3,048,150 0.51%
LISHERYNZHA
New 4,005,959 0.66%
NMING
Whether the Company's top 10 ordinary shareholders and the top 10 ordinary shareholders without selling
restrictions conducted agreed repurchase transactions during the reporting period
□Yes No
The the Company's top 10 ordinary shareholders and the top 10 ordinary shareholders without selling
restrictions did not engage in any agreed repurchase transactions during the reporting period.
2. Information on the Company's controlling shareholder
Nature of controlling shareholder: none
Type of controlling shareholders: none
Explanation that the Company has no controlling shareholder
Currently, the Company has no controlling shareholder as defined in the Company Law and Stock Listing Rules.
Changes in controlling shareholders during the reporting period
□Applicable Not applicable
The Company's controlling shareholder did not change during the reporting period.
95
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
3. The Company's actual controller and its persons acting in concert
Nature of actual controller: no actual controller
Type of actual controller: do not exist
Explanation of the fact that the Company has no actual controller
At present, the Company does not meet the criteria for identifying actual controller of a listed company as
stipulated in the Company Law, the Measures for the Administration of Acquisition of Listed Companies and
the Stock Listing Rules.
Whether there are shareholders with a shareholding ratio of more than 10% at the Company's ultimate
controlling level
□Yes No
Changes in actual controller during the reporting period
□Applicable Not applicable
The Company's actual controller did not change during the reporting period.
Block diagram of the Company's property rights and control relationship
Shenzhen State-owned Assets Supervision Shenzhen Nanshan District State-owned
and Administration Commission Assets Supervision and Management Bureau
Shenzhen Shenhuitong Investment Holding
Co., Ltd.
Shenzhen Huitong Financial Holdings Fund
Investment Co., Ltd.
Shenzhen Kehuitong Investment Holding
Co., Ltd.
Shenzhen Capital Holdings Co., Ltd.
Shenzhen Guangju Investment Holdings (Group)
Co., Ltd.
Shenzhen Energy (Hong Kong) International
Limited
Shenzhen Guangju Energy Co., Ltd.
HONG KONG NAM HOI
Shenzhen Energy Corporation Shenzhen Guangju Industrial Co., Ltd.
(INTERNATIONAL) LTD
Shenzhen Nanshan Power Co., Ltd.
Actual controller controls the Company through trust or other asset management methods
□Applicable Not applicable
4. Cumulative number of pledged shares by the Company's controlling shareholder or largest
shareholder and persons acting in concert accounts for 80% of the Company's shares held by them.
□Applicable Not applicable
96
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
5. Other legal person shareholders holding more than 10% of the shares
Applicable □ Not applicable
Legal Main business or
Name of legal Date of
representative/comp Registered capital management
person shareholder establishment
any principal activities
HONG KONG
NAM HOI
Kong Guoliang May 14, 1985 HKD 15.33 million Investment holdings
(INTERNATIONA
L) LTD
Establishing
industries and
Shenzhen Guangju RMB 111.11 investing in power
Deng Zhenwu May 31, 1989
Industrial Co., Ltd. million (specific projects
will be declared
separately), etc.
Development,
production,
purchase and sale of
various
Shenzhen Energy conventional energy
Kong Guoliang July 15, 1985 RMB 230,971,224
Corporation sources (including
electricity, heat,
coal, oil and gas)
and new energy
sources
6. Shareholding restrictions and reductions of controlling shareholders, actual controllers, reorganizers
and other commitment entities
□Applicable Not applicable
IV. Specific implementation of share repurchases during the reporting period
Progress of implementation in share repurchase
□Applicable Not applicable
Implementation progress of reducing repurchased shares in centralized bidding transaction method
□Applicable Not applicable
97
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Section VIII Preferred shares
□Applicable Not applicable
There were no preferred shares in the Company during the reporting period.
98
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Section IX Bonds
□Applicable Not applicable
99
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Section X Financial report
Type of audit opinion Unqualified opinion
Signing date of audit report April 10, 2024
Name of audit agency Lixinzhonglian CPAS (Special General Partnership)
Audit Report No. LXZLSZ [2024] No.D-0139
Name of certified public
Cao Wei and Zou Yang
accountant
(See the attached audit report for details)
100
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Audit Report
LXZLSZ [2024] No.D-0139
To the Shareholders of Shenzhen Nanshan Power Co., Ltd.,
I. Audit opinions
We have audited the accompanying financial statements of Shenzhen Nanshan Power Co., Ltd. (hereinafter
referred to as Shenzhen Nanshan Power), which comprise the consolidated and parent company's balance sheet
as at December 31, 2023, the consolidated and parent company's income statement, the consolidated and parent
company's statement of cash flows, the consolidated and parent company's statement of changes in shareholders'
equity for the year then ended, and the notes to the financial statements.
In our opinion, the financial statements attached are prepared, in all material respects, in accordance with the
Accounting Standards for Business Enterprises, and present fairly the consolidated and parent company's
financial positions as at December 31, 2023 and the consolidated and parent company's operating results and
cash flows for the year then ended.
II. Basis for Opinion
We conducted our audit in accordance with Auditing Standards for Certified Public Accountants in China. Our
responsibilities under those standards are further described in the "Auditors' Responsibilities for the Audit of the
Financial Statements" of this audit report. According to the Code of Ethics for Certified Public Accountants of
China, we are independent of Shenzhen Nanshan Power, and we have fulfilled other responsibilities in the
aspect of code of ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
III. Key audit matters
Key audit matters are those matters that, in our professional judgment, are of most significance in our audit of
the financial statements for the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.
Key audit matters How these matters were addressed in the audit
(I) Revenue recognition
For details accounting policies for revenue The audit procedures related to the recognition of
recognition and analysis of revenue, please operating revenue include the following procedures:
consolidated financial statements to 1. Evaluating the design and operating effectiveness
accounting policies described in Note of key internal control related to revenue
(XXV) of "III. Significant accounting recognition;
policies and accounting estimates" of the 2. For power production and sales revenue, we
Notes to the Consolidated Financial obtained and checked the electricity sales contract
101
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Statements and Note (XXXIX) of "V. Notes and settlement statements, and confirmed the
to consolidated financial statements". balance of accounts receivable at the end of the
In 2023, Shenzhen Nanshan Power period and the current operating revenue, and
consolidated operating revenue of RMB confirmed the authenticity of the electricity sales
589,780,190.71, with a decrease of 15.05% revenue in combination with the post-period
from the previous period. accounts receivable;
As operating revenue is one of the 3. For revenue from integrated energy services, we
Company's key performance indicators and obtained and reviewed the Company's accounting
there is an inherent risk that the time point policies, understood and evaluated the
of revenue recognition may be manipulated management's method of determining the
to meet specific goals or expectations, we completion progress, evaluated the rationality of
identified recognition of operating revenue time point of revenue recognition, and determined
as a key audit matter. the rationality of the project completion progress by
checking external evidence such as project
contracts, project delivery, acceptance settlement,
etc., and confirmed the authenticity and
completeness of revenue from integrated energy
services in combination with the confirmation reply
and post-period collection;
4. Performing substantive analysis procedures on
operating revenue and gross margin to determine the
rationality of changes in operating revenue and
gross margin the current period;
5. Performing a cut-off testing on operating revenue
to evaluate whether operating revenue has been
included in the appropriate accounting period.
6. Checking whether information related to
operating revenue has been properly reported in the
financial statements
(II) Asset impairment
Please refer to accounting policies described Our audit procedures regarding asset impairment
in Note (XX) of "III. Significant accounting include:
policies and accounting estimates " in the 1. Evaluating and testing the design and
notes to the financial statements. implementation effectiveness of internal control
As of December 31, 2023, the book value of related to asset impairment;
inventories, fixed assets and construction in 2. Obtaining accounting policies for asset
progress in consolidated financial statements impairment, check whether the provision method of
of Shenzhen Nanshan Power totaled RMB asset impairment complies with regulations, and
661,089,840.61, accounting for 32.26% of obtain and review the details of provision for asset
the consolidated total assets, which is an impairment made by the management;
important part of Shenzhen Nanshan Power's 3. Supervising the inventory taking to check the
assets. quantity and status of inventories, and implement
102
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Shenzhen Nanshan Power's management has inventory supervision procedures for long-term
evaluated whether there are indications of assets on sample basis to understand whether the
impairment of the above assets. If assets are facing problems such as backward
indications of impairment are identified, the technology, long-term idleness, and low load rate;
management calculates recoverable amount 4. Using the work of external appraiser experts to
of the individual asset or the asset group to conduct a comprehensive evaluation of the external
which it belongs, and conducts impairment appraiser's qualifications, competencies, assessment
test on it by comparing recoverable amount methods and various parameters used in the
with book value. assessment.
Since Shenzhen Nanshan Power's
management needs to use significant
accounting estimates and judgments when
determining the estimated recoverable
amount of assets, which have significant
affected amount, we determine the asset
impairment loss as a key audit matter.
IV. Other information
Shenzhen Nanshan Power's management (hereinafter referred to as the management) is responsible for other
information. Other information includes information included in the relevant documents constituting the 2023
Annual Report, but excludes the financial statements and our audit report.
Our opinion on the financial statements does not cover the other information and we do not and will not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If we determine, based on the work we have performed, that other information is materially misstated, we
should report that fact. We have nothing to report in this regard.
V. Responsibilities of the Management and Those Charged with Governance for the Financial Statements
The management is responsible for preparing the financial statements in accordance with the requirements of
the Accounting Standards for Business Enterprises to achieve a fair presentation, and for designing,
implementing and maintaining internal control that is necessary to ensure that the financial statements are free
from material misstatements, whether due to frauds or errors.
In preparing the financial statements, the Management is responsible for assessing the Shenzhen Nanshan
Power’s going-concern ability, disclosing the matters related to going concern and using the going-concern
assumption unless the Management either intends to liquidate Shenzhen Nanshan Power or to cease operations,
or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing Shenzhen Nanshan Power's financial reporting
process.
VI. Auditors' Responsibilities for the Audit of the Financial Statements
103
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an audit report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the audit standards will always detect a material misstatement when it exists. Misstatements may arise
from fraud or error and are generally considered material if separate or aggregated misstatements are reasonably
expected to possibly influence the economic decisions made by the users of financial statements on the basis of
these financial statements.
In the process of performing audit work in accordance with the auditing standards, we use professional
judgment and maintain professional skepticism. Meanwhile, we also:
(1) Identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
(2) Understanding internal control related to the audit in order to design audit procedures that are appropriate in
the circumstances.
(3) Evaluating the appropriateness of accounting policies used by and the reasonableness of accounting
estimates and related disclosures made by the management.
(4) Drawing conclusions on the appropriateness of the management's use of going concern basis. Meanwhile,
according to the audit evidence acquired, the management comes to conclusion on matters which may cause
significant misgiving against the going-concern ability of Shenzhen Nanshan Power or whether the said
situation exists material uncertainty or not. If we conclude that a material uncertainty exists, auditing standards
require us to draw the attention of users of the financial statements to the related disclosures in financial
statements in our audit report; If such disclosures are inadequate, we should modify our opinion. Our
conclusions are based on the information available as of the date of our audit report. However, future events or
conditions may cause Shenzhen Nanshan Power to cease to continue as a going concern.
(5) Evaluating the overall presentation, structure and content of financial statements, and evaluate whether
financial statements fairly reflect relevant transactions and events.
(6) Obtaining sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within Shenzhen Nanshan Power to express an opinion on the financial statements. We are responsible
for directing, supervising and performing group audits and take full responsibility for our audit opinions.
We communicate with those charged with governance regarding, among other matters, 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 those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that are of
most significance in the audit of the financial statements of the current period and are therefore the key audit
104
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
matters. We describe these matters in our auditor's report, unless these matters are forbidden by laws and
regulations to be disclosed or in extremely rare circumstances, when the negative impact arising from the
reasonable and expected communication about a certain matter in a audit report exceeds the public interest
benefits arising therefrom, we determine that such matter should not be communicated in the auditors' report.
Lixinzhonglian CPAS (Special General Partnership) Certified Public Accountant of China:Cao Wei
(Engagement Partner)
Certified Public Accountant of China:Zou Yang
Tianjin, China April 10, 2024
105
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Financial Statements
1. Consolidated Balance Sheet
Prepared by: Shenzhen Nanshan Power Co., Ltd.
Unit: RMB
Item December 31, 2023 January 1, 2023
Current assets:
Monetary funds 316,188,782.49 675,496,266.40
Balances with clearing companies
Loans to banks and other financial institutions
Financial assets held for trading 226,000,000.00 440,013,571.10
Derivative financial assets
Notes receivable
Accounts receivable 111,975,251.10 135,833,492.64
Receivables financing
Advances to suppliers 26,869,175.59 45,448,287.86
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Other receivables 19,233,117.52 18,314,003.84
Including: interest receivable
Dividends receivable
Financial assets purchased under resale
agreements
Inventories 86,158,251.16 85,279,298.35
Contract assets 88,000.00 217,009.58
Assets held for sale
Non-current assets maturing within one year
Other current assets 232,865,968.63 188,248,840.44
Total current assets 1,019,378,546.49 1,588,850,770.21
Non-current assets:
Disbursement of loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 90,001,176.04 83,496,098.24
Other investments in equity instruments 300,615,000.00 300,615,000.00
Other non-current financial assets
Investment properties 1,664,566.60 1,833,344.20
Fixed assets 571,482,734.35 591,290,204.31
Construction in progress 3,448,855.10 4,861,062.16
Productive biological assets
106
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Oil and gas assets
Right-of-use assets 2,266,946.42 7,707,617.90
Intangible assets 19,285,629.03 19,799,355.12
Development expenses
Goodwill
Long-term deferred expenses 3,891,832.93 1,219,129.18
Deferred tax assets 1,172,366.49 1,172,366.49
Other non-current assets 36,157,735.24 5,371,398.18
Total non-current assets 1,029,986,842.20 1,017,365,575.78
Total assets 2,049,365,388.69 2,606,216,345.99
Current liabilities:
Short-term borrowings 341,237,886.72 879,957,857.44
Borrowing from the central bank
Loans from banks and other financial institutions
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 137,298,902.17
Accounts payable 4,342,166.50 5,227,836.22
Advances from customers
Contract liabilities
Financial assets sold under repurchase
agreements
Absorption of deposits and interbank deposits
Receivings from vicariously traded securities
Receivings from vicariously sold securities
Employee compensation payable 46,238,982.57 29,296,815.07
Taxes payable 3,089,330.47 5,107,666.73
Other payables 13,973,447.42 22,997,466.80
Including: interest payable
Dividends payable
Handling charges and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities maturing within one year 3,926,326.45 6,014,119.95
Other current liabilities 21,600.00
Total current liabilities 412,808,140.13 1,085,922,264.38
Non-current liabilities:
Reserves for insurance contract
Long-term borrowings 58,829,426.30 28,019,758.68
Bonds payable
Including: preferred shares
Perpetual bonds
Lease liabilities 2,262,160.03
107
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Long-term payables
Long-term employee compensations payable
Estimated liabilities 15,000,000.00 15,000,000.00
Deferred income 67,869,348.07 82,145,596.60
Deferred tax liabilities
Other non-current liabilities 104,045,112.54 47,511.72
Total non-current liabilities 245,743,886.91 127,475,027.03
Total liabilities 658,552,027.04 1,213,397,291.41
Owners' equity:
Share capital 602,762,596.00 602,762,596.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital reserves 362,770,922.10 362,770,922.10
Less: treasury shares
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 profits 163,346,776.24 159,187,979.14
Total of owners' equity attributable to the parent
1,459,288,691.94 1,455,129,894.84
company
Minority interests -68,475,330.29 -62,310,840.26
Owners' equity 1,390,813,361.65 1,392,819,054.58
Total Liabilities and owners' equity 2,049,365,388.69 2,606,216,345.99
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin
Head of the Finance Department: Lin Xiaojia
2. Parent Company's Balance Sheet
Unit: RMB
Item December 31, 2023 January 1, 2023
Current assets:
Monetary funds 288,209,271.60 652,703,545.21
Financial assets held for trading 226,000,000.00 440,013,571.10
Derivative financial assets
Notes receivable
Accounts receivable 26,981,407.91 47,995,982.82
Receivables financing
Advances to suppliers 15,384,546.45 29,715,650.29
Other receivables 714,553,901.02 851,189,111.89
Including: interest receivable
Dividends receivable
Inventories 79,966,182.19 79,504,053.32
108
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Contract assets
Assets held for sale
Non-current assets maturing within one year
Other current assets 225,282,791.79 180,501,049.31
Total current assets 1,576,378,100.96 2,281,622,963.94
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 495,642,748.40 352,171,153.27
Other investments in equity instruments 160,615,000.00 160,615,000.00
Other non-current financial assets
Investment properties
Fixed assets 270,785,343.05 279,587,315.87
Construction in progress 2,267,334.95 1,976,173.28
Productive biological assets
Oil and gas assets
Right-of-use assets 2,266,946.42 7,707,617.90
Intangible assets 159,361.27 193,607.19
Development expenses
Goodwill
Long-term deferred expenses 699,249.25 1,106,385.13
Deferred tax assets
Other non-current assets 857,135.84
Total non-current assets 933,293,119.18 803,357,252.64
Total assets 2,509,671,220.14 3,084,980,216.58
Current liabilities:
Short-term borrowings 341,237,886.72 285,705,357.36
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 737,298,902.17
Accounts payable 896,652.87 3,759,009.04
Advances from customers
Contract liabilities
Employee compensation payable 7,012,680.38 18,905,560.54
Taxes payable 1,413,720.40 1,203,569.67
Other payables 203,625,916.75 170,451,537.10
Including: interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities maturing within one year 3,926,326.45 6,014,119.95
Other current liabilities
Total current liabilities 558,113,183.57 1,223,338,055.83
109
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Non-current liabilities:
Long-term borrowings 58,829,426.30 28,019,758.68
Bonds payable
Including: preferred shares
Perpetual bonds
Lease liabilities 2,262,160.03
Long-term payables
Long-term employee compensations payable
Estimated liabilities
Deferred income 48,280,623.30 48,978,528.78
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 107,110,049.60 79,260,447.49
Total liabilities 665,223,233.17 1,302,598,503.32
Owners' equity:
Share capital 602,762,596.00 602,762,596.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital reserves 289,963,039.70 289,963,039.70
Less: treasury shares
Other comprehensive income
Special reserves
Surplus reserves 332,908,397.60 332,908,397.60
Undistributed profits 618,813,953.67 556,747,679.96
Owners' equity 1,844,447,986.97 1,782,381,713.26
Total Liabilities and owners' equity 2,509,671,220.14 3,084,980,216.58
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin
Head of the Finance Department: Lin Xiaojia
3. Consolidated Income Statement
Unit: RMB
Item 2023 2022
I. Total operating revenue 589,780,190.71 694,227,657.28
Including: operating revenue 589,780,190.71 694,227,657.28
Interest income
Premiums earned
Revenue from handling charges and
commissions
II. Total operating costs 685,824,056.18 947,345,416.89
Including: operating costs 581,442,543.98 804,679,323.48
Interest expenses
Expenses from handling charges and
110
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
commissions
Surrender deposit
Net amount of compensation payout
Net amount withdrawn for insurance
contract reserves
Policy dividends
Reinsurance costs
Taxes and surcharges 4,799,616.56 5,401,350.20
Selling and distribution expenses 2,831,748.65 375,055.78
G&A expenses 58,330,596.87 79,099,350.54
R&D expenses 26,839,912.74 25,647,534.39
Financial expenses 11,579,637.38 32,142,802.50
Including: interest expenses 18,400,119.58 40,218,036.98
Interest income 7,358,119.93 8,790,975.96
Plus: other income 44,505,889.51 9,333,093.72
Investment income (losses expressed with "-
34,997,898.47 70,717,321.61
")
Including: investment income from
7,719,627.80 3,635,763.05
associates and joint ventures
Gains from derecognition of
financial assets measured at amortized costs
Exchange gains (losses expressed with "-")
Net exposure hedging gains (losses
expressed with "-")
Gains from fair value changes (losses
expressed with "-")
Losses from credit impairment (losses
1,190,348.40 -1,711,964.42
expressed with "-")
Asset impairment loss (losses expressed
-162,985.78 -8,946,433.92
with "-")
Gains from disposal of assets (losses
1,886,136.92 291,985.88
expressed with "-")
III. Operating profit (losses expressed with "-") -13,626,577.95 -183,433,756.74
Plus: non-operating revenue 11,687,001.25 39,600.00
Less: non-operating expenses 66,116.23 2,191,784.23
IV. Total profit (total losses expressed with "-") -2,005,692.93 -185,585,940.97
Less: income tax expenses -63,080.11
V. Net profit (net losses expressed with "-") -2,005,692.93 -185,522,860.86
(I) Classification by operations continuity -2,005,692.93 -185,522,860.86
1. Net profit from continued operations (net losses
-2,005,692.93 -185,522,860.86
expressed with "-")
2. Net profit from discontinued operations (net
losses expressed with "-")
(II) Classification by ownership -2,005,692.93 -185,522,860.86
111
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
1. Net profit attributable to shareholders of the
4,158,797.10 -160,163,240.67
parent company
2. Minority interest income -6,164,490.03 -25,359,620.19
VI. Net of tax of other comprehensive income
Net of tax of other comprehensive income
attributable to shareholders of the parent company
(I) Other comprehensive income that cannot be
reclassified into profit or loss
1. Remeasure changes in benefit plans
2. Other comprehensive income that cannot be
converted into profit or loss under the equity method
3. Fair value changes of other investments in
equity instruments
4. Fair value changes of the enterprise's own
credit risk
5. Others
(II) Other comprehensive income to be
reclassified into profit or loss
1. Other comprehensive income that can be
converted into profit or loss under the equity method
2. Fair value changes of other debt investments
3. Amounts reclassified from financial assets
into other comprehensive income
4. Credit loss provisions for other debt
investments
5. Cash flows hedging reserve
6. Difference in translation of foreign-currency
financial statements
7. Others
Net of tax of other comprehensive income
attributable to minority shareholders
VII. Total comprehensive income -2,005,692.93 -185,522,860.86
Total comprehensive income attributable to
4,158,797.10 -160,163,240.67
shareholders of the parent company
Total comprehensive income attributable to minority
-6,164,490.03 -25,359,620.19
shareholders
VIII. Earnings per share
(I) Basic earnings per share 0.0069 -0.2657
(II) Diluted earnings per share 0.0069 -0.2657
If a business combination under common control occurs in the current period, the net profit reported by the
combined party before the combination is: RMB X, and the net profit reported by the combined party in the
previous period is: RMB X.
112
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin
Head of the Finance Department: Lin Xiaojia
4. Parent company's income statement
Unit: RMB
Item 2023 2022
I. Operating revenue
391,649,949.09 423,083,901.93
Less: operating costs
363,689,532.32 454,563,835.47
Taxes and surcharges
2,280,457.39 2,377,366.77
Selling and distribution expenses
963,163.50 -
G&A expenses 33,986,762.85
25,040,490.15
R&D expenses
13,244,617.52 14,071,545.66
- -
Financial expenses
14,764,469.81 7,205,301.51
Including: interest expenses
14,182,249.86 29,858,590.98
Interest income
29,605,337.48 38,552,729.42
Plus: other income 30,169,947.71
5,553,834.58
Investment income (losses expressed with "-
32,562,187.79
") 72,910,517.66
Including: investment income from
6,966,316.30
associates and joint ventures 6,208,396.44
Income from derecognition of
financial assets measured at amortized costs (losses
expressed with "-")
Net exposure hedging gains (losses expressed
with "-")
Gains from fair value changes (losses
expressed with "-")
Losses from credit impairment (losses
1,105,348.40
expressed with "-") -
Asset impairment loss (losses expressed with -
"-") - 16,871,485.12
Gains from disposal of assets (losses
expressed with "-") 1,749,289.52 -291,564.09
113
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
-
II. Operating profit (losses expressed with "-") 57,836,658.74
4,462,731.58
Plus: non-operating revenue
4,287,730.08 10,000.00
Less: non-operating expenses
58,115.11 1,539,264.83
-
III. Total profit (total losses expressed with "-")
62,066,273.71 5,991,996.41
Less: income tax expenses
-
-
IV. Net profit (net losses expressed with "-")
62,066,273.71 5,991,996.41
(I) Net profit from continued operations (net -
losses expressed with "-") 62,066,273.71 5,991,996.41
(II) Net profit from discontinued operations (net
losses expressed with "-")
V. Net of tax of other comprehensive income
(I) Other comprehensive income that cannot be
reclassified into profit or loss
1. Remeasure changes in benefit plans
2. Other comprehensive income that cannot be
converted into profit or loss under the equity method
3. Fair value changes of other investments in
equity instruments
4. Fair value changes of the enterprise's own
credit risk
5. Others
(II) Other comprehensive income to be
reclassified into profit or loss
1. Other comprehensive income that can be
converted into profit or loss under the equity method
2. Fair value changes of other debt investments
3. Amounts reclassified from financial assets
into other comprehensive income
4. Credit loss provisions for other debt
investments
5. Cash flows hedging reserve
6. Difference in translation of foreign-currency
financial statements
7. Others
-
VI. Total comprehensive income
62,066,273.71 5,991,996.41
VII. Earnings per share
(I) Basic earnings per share
114
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
0.1030 -0.0099
(II) Diluted earnings per share
0.1030 -0.0099
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin
Head of the Finance Department: Lin Xiaojia
5. Consolidated statement of cash flows
Unit: RMB
Item 2023 2022
I. Cash flows generated from operating activities:
Cash received from selling goods and providing
693,869,206.44 757,303,689.96
services
Net increase in customer deposits and inter-bank
deposits
Net increase in borrowing from the central bank
Net increase in borrowings from banks and other
financial institutions
Cash received from premiums from original
insurance contract
Net cash received from reinsurance business
Net increase in policyholders' savings and
investment funds
Cash collected from interest, handling charges and
commissions
Net increase in borrowings from banks and other
financial institutions
Net increase in funds from repurchase business
Net cash received from securities trading agency
Tax refunds received 330,262,197.76
Other cash related to operating activities received 45,771,867.13 54,083,544.34
Sub-total of cash inflows from operating activities 739,641,073.57 1,141,649,432.06
Cash paid for purchasing goods or receiving
661,135,671.43 746,137,912.91
services
Increase in loans and advances to customers
Net increase in central-bank deposits and inter-
bank deposits
Cash paid for indemnity payment of original
insurance contract
Net increase in lending funds
Cash paid for interest, handling charges and
commissions
Cash paid for policy dividends
115
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Cash paid to and for employees 110,624,945.12 130,590,587.11
Various taxes paid 31,928,707.60 31,947,280.10
Other cash related to operating activities paid 36,323,726.34 25,805,249.68
Sub-total of cash outflows from operating activities 840,013,050.49 934,481,029.80
Net cash flows from operating activities -100,371,976.92 207,168,402.26
II. Cash flows generated from investing activities:
Cash received from recovery of investments 620,010,220.37 120,000,725.39
Cash received from investment income 24,318,744.60 57,197,267.13
Net cash received from disposal of fixed assets,
104,554,420.00 1,337,042.66
intangible assets and other long-term assets
Net cash received from disposal of subsidiary and
other business institutions
Other cash related to investing activities received 344,800.00
Sub-total of cash inflows from investing activities 749,228,184.97 178,535,035.18
Cash paid for purchase and construction of fixed
10,145,320.80 3,306,286.80
assets, intangible assets and other long-term assets
Cash paid for investment 100,000,000.00
Net increase in pledge loans
Net cash paid for acquisition of subsidiary and
other business institutions
Other cash related to investing activities paid 446,393,066.79 180,009,000.00
Sub-total of cash outflows from investing activities 456,538,387.59 283,315,286.80
Net cash flows from investing activities 292,689,797.38 -104,780,251.62
III. Cash flows generated from financing activities:
Cash received from investment absorption 199.92
Including: cash received from absorption of
199.92
minority investments by subsidiaries
Cash received from acquisition of borrowings 421,093,926.90 1,089,969,116.74
Other cash related to financing activities received
Sub-total of cash inflows from financing activities 421,093,926.90 1,089,969,316.66
Cash paid to repay debt 933,281,007.65 1,191,887,723.08
Cash paid to distribute dividend, profits or repay
11,184,721.21 15,047,840.81
interest
Including: dividends and profits paid to minority
shareholders by subsidiaries
Other cash related to financing activities paid 6,314,826.00 27,474,594.34
Sub-total of cash outflows from financing activities 950,780,554.86 1,234,410,158.23
Net cash flows from financing activities -529,686,627.96 -144,440,841.57
IV. The impact of fluctuation in exchange rate on
82,055.00 469,729.40
cash and cash equivalents
V. Cash and net increase in cash equivalents -337,286,752.50 -41,582,961.53
Plus: beginning cash and balance of cash
648,021,672.06 689,604,633.59
equivalents
VI. Closing cash and balance of cash equivalents 310,734,919.56 648,021,672.06
116
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin
Head of the Finance Department: Lin Xiaojia
6. Parent company's statement of cash flows
Unit: RMB
Item 2023 2022
I. Cash flows generated from operating activities:
Cash received from selling goods and providing
services 585,940,800.94 719,471,315.94
Tax refunds received
- 321,424,443.28
Other cash related to operating activities received
101,359,126.91 266,804,943.28
Sub-total of cash inflows from operating activities 687,299,927.85 1,307,700,702.50
Cash paid for purchasing goods or receiving
services 466,366,789.52 356,279,013.18
Cash paid to and for employees
66,128,967.09 85,583,891.95
Various taxes paid
16,336,435.27 13,597,429.91
Other cash related to operating activities paid
232,370,081.08 17,608,551.99
Sub-total of cash outflows from operating activities
781,202,272.96 473,068,887.03
-
Net cash flows from operating activities
93,902,345.11 834,631,815.47
II. Cash flows generated from investing activities:
Cash received from recovery of investments 620,010,220.37
110,000,725.39
Cash received from investment income
22,636,345.42 57,194,268.15
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets 4,770.62 1,337,042.66
Net cash received from disposal of subsidiary and
other business institutions
Other cash related to investing activities received
126,000,000.00 20,061,163.76
Sub-total of cash inflows from investing activities
768,651,336.41 188,593,199.96
Cash paid for purchase and construction of fixed
assets, intangible assets and other long-term assets 9,955,363.27 1,639,514.07
Cash paid for investment
- 100,000,000.00
117
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Net cash paid for acquisition of subsidiary and
other business institutions - 559,800.08
Other cash related to investing activities paid
464,000,000.00 342,762,500.00
Sub-total of cash outflows from investing activities 473,955,363.27
444,961,814.15
-
Net cash flows from investing activities
294,695,973.14 256,368,614.19
III. Cash flows generated from financing activities:
Cash received from investment absorption
Cash received from acquisition of borrowings
421,093,926.90 507,211,616.74
Other cash related to financing activities received
- 13,000,000.00
Sub-total of cash inflows from financing activities
421,093,926.90 520,211,616.74
Cash paid to repay debt
933,281,007.65 1,011,887,723.08
Cash paid to distribute dividend, profits or repay
interest 11,182,322.03 15,044,841.83
Other cash related to financing activities paid
19,898,880.17 39,068,511.01
Sub-total of cash outflows from financing activities
964,362,209.85 1,066,001,075.92
- -
Net cash flows from financing activities
543,268,282.95 545,789,459.18
IV. The impact of fluctuation in exchange rate on
cash and cash equivalents 1,112.72 3,994.89
-
V. Cash and net increase in cash equivalents
342,473,542.20 32,477,736.99
Plus: beginning cash and balance of cash
equivalents 625,228,950.87 592,751,213.88
VI. Closing cash and balance of cash equivalents
282,755,408.67 625,228,950.87
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin
Head of the Finance Department: Lin Xiaojia
118
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
7. Consolidated statements of changes in owners' equity
The current period amount
Unit: RMB
2023
Owners' equity attributable to the parent company
Minori
Other equity instruments Less: Other Speci Gener Owner
Item Undistri ty
Share Preferr Perpet Capital treasu compre al Surplus al risk s'
Othe buted Others Subtotal interest
capital ed ual reserves ry hensive reser reserves reserv equity
rs profits s
shares bonds shares income ves es
159,18 -
602,76 362,77 - 332,90 1,455,1 1,392,
I. Closing balance of 7,979. 62,310
2,596.0 0,922. 2,500, 8,397. 29,894. 819,05
the previous year 14 ,840.2
0 10 000.00 60 84 4.58
6
Plus: changes in
accounting policies
Correction of
prior period errors
Others
159,18 -
602,76 362,77 - 332,90 1,455,1 1,392,
II. Beginning balance 7,979. 62,310
2,596.0 0,922. 2,500, 8,397. 29,894. 819,05
of the current year 14 ,840.2
0 10 000.00 60 84 4.58
6
III. Changes in the 4,158,7 4,158,79 -
97.10 7.10 - 2,005,6
current period
6,164,4 92.93
(decreases expressed 90.03
with "-")
(I) Total 4,158,7 4,158,79 - -
97.10 7.10 6,164,4 2,005,6
comprehensive
119
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
income 90.03 92.93
(II) Owner's
investment and
reductions in capital
1. Ordinary shares
invested by owners
2. Capital invested by
other equity
instruments holders
3. Share-based
payments included in
owners' equity
4. Others
(III) Profit
distribution
1. Withdrawal of
surplus reserve
2. Withdrawal of
general risk reserve
3. Distributions to
owners (or
shareholders)
4. Others
(IV) Internal
transfer of owners'
equity
1. Capital reserve
converted into capital
(or share capital)
120
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
2. Surplus reserve
converted into capital
(or share capital)
3. Surplus reserve to
cover losses
4. Changes in benefit
plans transferred to
retained earnings
5. Other
comprehensive
income transferred to
retained earnings
6. Others
(V) Special reserve
13,2
13,270
1. Withdrawal in the 70,9 13,270,
,901.6
current period 01.6 901.66
6
6
13,2
13,270
2. Usage in the current 70,9 13,270,
,901.6
period 01.6 901.66
6
6
(VI) Others
602,76 362,77 - 332,90 - 1,390,8
IV. Closing balance in 163,346 1,459,28
2,596.0 0,922. 2,500, 8,397. 68,475, 13,361.
the current period ,776.24 8,691.94
0 10 000.00 60 330.29 65
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia
121
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
122
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Amount in previous period
Unit: RMB
2022
Owners' equity attributable to the parent company
Other equity
Less Other
instruments Gen
: compr Surplu
Item Pref Perp Capital eral Undistri Minority Owners'
Share trea ehensi Special s Oth
erre etua reserve risk buted Subtotal interests equity
capital Oth sury ve reserves reserv ers
d l s rese profits
ers shar incom es
shar bon rves
es e
es ds
602,76 362,77 - 332,90 -
I. Closing balance of 319,351, 1,615,293 1,578,34
2,596.0 0,922.1 2,500, 8,397. 36,951,2
the previous year 219.81 ,135.51 1,915.44
0 0 000.00 60 20.07
Plus: changes in
accounting policies
Correction of
prior period errors
Others
602,76 362,77 - 332,90 -
II. Beginning balance 319,351, 1,615,293 1,578,34
2,596.0 0,922.1 2,500, 8,397. 36,951,2
of the current year 219.81 ,135.51 1,915.44
0 0 000.00 60 20.07
III. Changes in the
- - - -
current period
160,163, 160,163,2 25,359,6 185,522,
(decreases expressed
240.67 40.67 20.19 860.86
with "-")
(I) Total - - - -
comprehensive 160,163, 160,163,2 25,359,6 185,522,
123
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
income 240.67 40.67 20.19 860.86
(II) Owner's
investment and
reductions in capital
1. Ordinary shares
invested by owners
2. Capital invested by
other equity
instruments holders
3. Share-based
payments included in
owners' equity
4. Others
(III) Profit
distribution
1. Withdrawal of
surplus reserve
2. Withdrawal of
general risk reserve
3. Distributions to
owners (or
shareholders)
4. Others
(IV) Internal
transfer of owners'
equity
1. Capital reserve
converted into capital
(or share capital)
124
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
2. Surplus reserve
converted into capital
(or share capital)
3. Surplus reserve to
cover losses
4. Changes in benefit
plans transferred to
retained earnings
5. Other
comprehensive
income transferred to
retained earnings
6. Others
(V) Special reserve
1. Withdrawal in the 879,946.4 879,946.4 879,946.
current period 9 9 49
2. Usage in the current 879,946.4 879,946.4 879,946.
period 9 9 49
(VI) Others
602,76 362,77 - 332,90 159,187, -
IV. Closing balance in 1,455,129 1,392,81
2,596.0 0,922.1 2,500, 8,397. 979.14 62,310,8
the current period ,894.84 9,054.58
0 0 000.00 60 40.26
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia
125
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
8. Statement of changes in owner's equity of the parent company
The current period amount
Unit: RMB
2023
Other equity instruments Other
Less:
compre Undistri
Item Share Preferr Perpet Capital treasur Special Surplus Other Owners'
Other hensiv buted
capital ed ual reserves y reserves reserves s equity
s e profits
shares bonds shares
income
I. Closing balance of the
602,762,5 289,963,039. 332,908, 556,747 1,782,381
previous year - - - - - -
96.00 70 397.60 ,679.96 ,713.26
Plus: changes in
accounting policies
Correction of prior
period errors
Others
II. Beginning balance of
602,762,5 289,963,039. 332,908, 556,747 1,782,381
the current year - - - - - -
96.00 70 397.60 ,679.96 ,713.26
III. Changes in the current
62,066, 62,066,27
period (decreases
273.71 3.71
expressed with "-")
(I) Total comprehensive
62,066, 622,066,2
income
273.71 73.71
(II) Owner's investment
126
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
and reductions in capital
1. Ordinary shares invested
by owners
2. Capital invested by other
equity instruments holders
3. Share-based payments
included in owners' equity
4. Others
(III) Profit distribution
1. Withdrawal of surplus
reserve
2. Distributions to owners
(or shareholders)
3. Others
(IV) Internal transfer of
owners' equity
1. Capital reserve
converted into capital (or
share capital)
2. Surplus reserve
converted into capital (or
share capital)
3. Surplus reserve to cover
losses
4. Changes in benefit plans
transferred to retained
earnings
5. Other comprehensive
income transferred to
127
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
retained earnings
6. Others
(V) Special reserve
1. Withdrawal in the
7,778,68 7,778,687
current period
7.26 .26
2. Usage in the current
7,778,68 7,778,687
period
7.26 .26
(VI) Others
IV. Closing balance in the 1,844,447
602,762,5 289,963,039. 332,908, 618,813
current period - - - - - - ,986.97
96.00 70 397.60 ,953.67
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia
128
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Amount in previous period
Unit: RMB
2022
Other equity instruments Other
Less:
compre Undistr
Item Share Preferr Perpet Capital treasur Special Surplus Other Owners'
Other hensiv ibuted
capital ed ual reserves y reserves reserves s equity
s e profits
shares bonds shares
income
I. Closing balance of the 562,73
602,762,5 289,963,039. 332,908, 1,788,373,
previous year - - - - - - 9,676.3
96.00 70 397.60 709.67
7
Plus: changes in
accounting policies
Correction of
prior period errors
Others
562,73
II. Beginning balance of 1,788,373,
602,762,5 289,963,039. 332,908, 9,676.3
the current year - - - - - - 709.67
96.00 70 397.60 7
III. Changes in the current - -
period (decreases 5,991,9 5,991,996.
expressed with "-") 96.41 41
(I) Total comprehensive
- -
income
5,991,9 5,991,996.
129
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
96.41 41
(II) Owner's investment
and reductions in capital
1. Ordinary shares invested
by owners
2. Capital invested by other
equity instruments holders
3. Share-based payments
included in owners' equity
4. Others
(III) Profit distribution
1. Withdrawal of surplus
reserve
2. Distributions to owners
(or shareholders)
3. Others
(IV) Internal transfer of
owners' equity
1. Capital reserve
converted into capital (or
share capital)
2. Surplus reserve
converted into capital (or
share capital)
3. Surplus reserve to cover
losses
4. Changes in benefit plans
transferred to retained
130
Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
earnings
5. Other comprehensive
income transferred to
retained earnings
6. Others
(V) Special reserve
1. Withdrawal in the
434,489. 434,489.5
current period
58 8
2. Usage in the current
434,489. 434,489.5
period
58 8
(VI) Others
IV. Closing balance in the 556,74
602,762,5 289,963,039. 332,908, 1,782,381,
current period - - - - - - 7,679.9
96.00 70 397.60 713.26
6
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia
131
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Shenzhen Nanshan Power Co., Ltd.
2023 Notes to the Financial statements
(Unless otherwise specified, the monetary unit is RMB)
I. Basic information of the Company
(I) Company profile
Shenzhen Nanshan Power Co., Ltd. (the Company) was reorganized and established from a
foreign investment enterprise to a joint stock limited company on November 25, 1993, with the
approval of the General Office of the Shenzhen Municipal People's Government under document
SFBF [1993] No. 897.
As approved by the General Office of the Shenzhen Municipal People's Government under
document SZBF [1993] No. 179, the Company issued 40 million RMB ordinary shares and 37
million domestically listed foreign shares to domestic and overseas investors respectively on
January 3, 1994. On July 1, 1994 and November 28, 1994, the RMB ordinary shares (A shares)
and domestically listed foreign shares (B shares) issued by the Company were listed and traded on
Shenzhen Stock Exchange.
The Company's main business is the production and operation of power supply and heating, as
well as technical consultation and technical services related to power plant (station). The
Company's registered address is located at No. 2097 Moon Bay Avenue, Nanshan District,
Shenzhen, Guangdong. The Company's headquarters office is located at 16F/17F, Hantang
Building, Overseas Chinese Town, Nanshan District, Shenzhen, Guangdong.
The financial statements have been approved by the Company's Board of Directors on April 10,
2024.
(II) Scope of financial statements
There are a total of 8 subsidiaries (enterprises) included in the scope of the consolidated financial
statements in the current period, including:
Shareholding
Subsidiary (enterprise) name Remark
ratio %
Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd.
80.00
(Shenzhen Nanshan Power Zhongshan Company)
Shenzhen Nanshan Power Gas Turbine Engineering
Technology (Shenzhen) Co., Ltd. (Shenzhen Nanshan Power 100.00
Engineering Company)
Shenzhen Nanshan Power Environmental Protection
(Shenzhen) Co., Ltd. (Shenzhen Nanshan Power 100.00
Environmental Protection Company)
Shenzhen Xiefu Energy Co., Ltd. (Xiefu Company) 50.00
Shenzhen New Power Industrial Co., Ltd. (New Power
100.00
Company)
Shennan Energy (Singapore) Co., Ltd. (Shennan Energy
100.00
(Singapore) Company)
Hong Kong Syndisome Co., Ltd. (Hong Kong Syndisome) 100.00
Zhuhai Hengqin Zhuozhi Investment Partnership ( Limited
99.96
Partnership) (Zhuhai Hengqin)
For details on the scope of consolidated financial statements in the current period and its changes,
please refer to Note "VII. Interests in Other Entities".
Notes to the Financial statements Page 1
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
II. Basis for the preparation of financial statements
The financial statements are prepared in accordance with Accounting Standards for Business
Enterprises - Basic Standards promulgated by the Ministry of Finance and the specific accounting
standards, application guidelines, interpretations and other relevant regulations promulgated and
revised thereafter (collectively referred to as the "Accounting Standards for Business Enterprises").
In addition, the financial statements also disclose relevant financial information in accordance
with the Information Disclosure and Preparation Rules for Companies that Issue Public Offering
of Securities No. 15 - General Provisions on Financial Reports (Revised in 2023.
The financial statements are prepared on a going concern basis. The Company has not found any
factors that would cause significant doubts about its going-concern ability within 12 months from
the end of the reporting period.
III. Important accounting policies and accounting estimates
Based on its actual production and operation characteristics and the provisions of relevant
Accounting Standards for Business Enterprises, the Company has formulated several specific
accounting policies and accounting estimates, which are mainly reflected in the Provision for Bad
Debts of Accounts Receivable (Note III (XI) 6), Inventories (Note III (XII)), Fixed Assets (Note
III (XVI)), Long-term Deferred Expenses (Note III (XXI)), Revenue Recognition and
Measurement (Note III (XXV)), Special Reserves (Note III (XXX)) etc.
(I) Statement on compliance with Accounting Standards for Business Enterprises
The financial statements comply with the requirements of Accounting Standards for Business
Enterprises promulgated by the Ministry of Finance, and truly and completely reflect the
Company's combination and the parent company's financial status as of December 31, 2023, as
well as the Company's combination and the parent company's operating results and cash flows in
2023.
(II) Accounting period
A fiscal year begins on January 1 and ends on December 31 of the Gregorian calendar.
(III) Operating cycle
The Company uses 12 months of the year as its normal operating cycle and uses the operating
cycle as a criterion for classifying the liquidity of its assets and liabilities.
(IV) Recording currency
The Company uses RMB as the recording currency.
(V) Materiality criteria determination method and selection basis
Item Materiality criterion
Significant individual provision for bad
Original book value is greater than RMB 1 million
debts of accounts receivable
Significant provision for bad debts of The amount of individual provision for bad debts
accounts receivable recovered or of accounts receivable recovered or reversed
Notes to the Financial statements Page 2
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Item Materiality criterion
reversed in the current period exceeds RMB 1 million
Write-off of significant accounts The write-off amount of individual accounts
receivable receivable exceeds RMB 1 million
The individual amount is greater than RMB 5
Important construction in progress
million
The individual amount is greater than RMB 5
Significant estimated liabilities
million
(VI) Accounting treatments for business combinations under common control and not under
common control
For a business combination under common control, the assets and liabilities acquired by the
combining party in a business combination are measured at the book value of the assets and
liabilities of the combined party at the combination date (including goodwill resulting from the
acquisition of the combined party by the ultimate controller) in the consolidated financial
statements of the ultimate controller. The difference between the book value of net assets acquired
in the combination and the book value of the combination consideration paid (or the total nominal
value of shares issued) is adjusted to the equity premium in capital reserve, or to retained earnings
if the equity premium in capital reserve is not sufficient for elimination.
For a business combination not under common control, the assets given, liabilities incurred or
assumed by the purchaser as consideration for the business combination are measured at fair value
at the purchase date, and the difference between the fair value and its book value is recognized in
current profit or loss. Goodwill is recognized if the combination cost is greater than the difference
in the share of fair value of identifiable net assets of the acquiree acquired in the combination;
current profit or loss is recognized if the combination cost is lower than the difference in the share
of fair value of identifiable net assets of the acquiree acquired in the combination.
Costs directly related to business combinations are recognized in current profit or loss as incurred;
transaction costs for the issuance of equity securities or debt securities for business combinations
are presented in the amount initially recognized for equity securities or debt securities.
(VII) Method of preparation for consolidated financial statements
1. Consolidation scope
The consolidation scope of the consolidated financial statements is determined based on control,
and covers the Company and all subsidiaries.
2. Consolidation procedure
The Company prepares consolidated financial statements based on its own financial statements
and those of its subsidiaries' and other relevant information. When the Company prepares
consolidated financial statements, it treats the entire enterprise group as an accounting entity, and
reflects the overall financial status, operating results and cash flows of the enterprise group in
accordance with the recognition, measurement and presentation requirements of relevant
Accounting Standards for Business Enterprises and in accordance with unified accounting policies.
Accounting policies and accounting periods adopted by all subsidiaries included in the
consolidation scope of consolidated financial statements are consistent with those of the Company.
If accounting policies and accounting periods adopted by subsidiaries are inconsistent with those
of the Company, necessary adjustments are made when preparing consolidated financial
statements in accordance with the Company's accounting policies and accounting periods. For a
subsidiary acquired through business combination not under common control, its financial
statements are adjusted based on fair value of identifiable net assets on the purchase date. For a
subsidiary acquired through business combination under common control, adjustments are made
Notes to the Financial statements Page 3
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
to its financial statements based on the book value of its assets and liabilities (including goodwill
resulting from acquisition of the subsidiary by ultimate controller) in the ultimate controller's
financial statements.
The subsidiary's owners' equity, current net profit or loss and current comprehensive income
belonging to minority shareholders are presented under the item of owners' equity in the
consolidated balance sheet, under the item of net profit and under the item of total comprehensive
income in the consolidated income statement, respectively. The balance resulting from the excess
of the minority shareholders' share of the current loss of a subsidiary over the minority's share of
the subsidiary's owners' equity at the beginning of the period is used to offset the minority interests.
(1) Increases in subsidiaries or businesses
If there are increases in subsidiaries or businesses as a result of business combination under
common control during the reporting period, the beginning balance of the consolidated balance
sheet is adjusted; include revenue, expenses and profits of subsidiaries or business combinations
from the beginning of the current period to the end of the reporting period in the consolidated
income statement; include cash flows from the beginning of the period to the end of the reporting
period of subsidiaries or business combinations in the consolidated statement of cash flows, and
adjust the relevant line items in the comparative statements to deem the consolidated reporting
entity to have been in existence since the time point at which the ultimate controller began to
control.
If control can be exercised over an investee under common control as a result of an additional
investment, etc., the parties involved in the combination are deemed to have been adjusted based
on their current status when the ultimate controller began to control. For equity investments held
prior to the acquisition of right of control of the combined party, the relevant profit or loss, other
comprehensive income and other changes in net assets have been recognized between the later of
the combination date of the original equity and the date on which the merging party and the
merged party were under common control and the combination date, whichever is later, and are
offset against the beginning retained earnings or current profit or loss of comparative statements
period.
If there are increases in subsidiaries or businesses as a result of a business combination not under
common control during the reporting period, the beginning balance of the consolidated balance
sheet will not be adjusted; include revenue, expenses and profits of subsidiary or business from the
purchase date to the end of the reporting period in consolidated income statement; include the cash
flows of the subsidiary or business from the purchase date to the end of the reporting period in the
consolidated statement of cash flows.
If the Company can control an investee that is not under common control as a result of additional
investment, etc., the Company remeasures the acquiree's equity interest held prior to the purchase
date at the fair value of the equity interest at the purchase date of the equity interest. The
difference between the fair value and its book value is recognized in current investment income. If
the equity interest in the acquiree held prior to the purchase date is related to other comprehensive
income accounted for under the equity method and other changes in owners' equity other than net
profit or loss, other comprehensive income and profit distribution, the other comprehensive
income and other changes in owners' equity related to them are transferred to investment income
for the period in which they are held at the purchase date, except for other comprehensive income
due to the remeasurement of the investee's net liabilities under defined benefit plans or changes in
net assets.
(2) Disposal of subsidiaries or businesses
① General treatment method
If the Company disposes the subsidiary or business during the reporting period, the revenue,
expenses and profits of the subsidiary or business from the beginning of the period to the date of
disposal are included in the consolidated income statement; cash flows of the subsidiary or
business from the beginning of the period to the date of disposal are included in the consolidated
statement of cash flows.
Notes to the Financial statements Page 4
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
When the Company loses right of control over the investee due to the disposal of part of the equity
investments or other reasons, the Company remeasures the remaining equity investments after the
disposal according to its fair value on the date of loss of control. The difference between the sum
of the consideration received for the disposal of equity interest and the fair value of the remaining
equity interest less the sum of the share of the original subsidiary's net assets continuously
measured from the purchase date or the combination date based on the original shareholding ratio
and goodwill is recognized as investment income in the period in which the loss of control occurs.
Other comprehensive income related to equity investments in subsidiaries or other changes in
owners' equity other than net profit or loss, other comprehensive income and profit distribution are
transferred to investment income in the current period upon loss of control, except for other
comprehensive income due to remeasurement of net liabilities under defined benefit plans or
changes in net assets by the investee.
If the Company's shareholding ratio decreases due to other investors' capital increase in the
subsidiary and the Company loss of control, accounting treatment is carried out in accordance with
the above principles.
① Disposal of subsidiaries in stages
For a disposal of equity investments in subsidiaries through multiple transactions in stages until
the loss of control, it generally indicates that multiple transactions are accounted for as a package
deal if the terms, conditions, and economic effects of each transaction of such disposal of equity
investments in subsidiaries meet one or more of the following circumstances:
i. Such transactions are entered into simultaneously or with consideration of their effects on each
other;
ii. Such transactions can only achieve a complete business result when taken as an entirety;
iii. The occurrence of one transaction depends on the occurrence of at least one other transaction;
iv. A transaction is uneconomical when considered in isolation, but economical when considered
in conjunction with other transactions.
If the transactions that dispose of the equity investments in subsidiaries until of loss of control
belongs to a package deal, the Company account for each transaction as a transaction in which
subsidiary is disposed of and loss of control; however, the difference between the disposal price
and the net asset share of the subsidiary corresponding to the disposal of the investment in each
case prior to the loss of control is recognized in the consolidated financial statements as other
comprehensive income and transferred to current profit or loss in the period in which the loss of
control occurs.
If various transactions involving the disposal of equity investments in subsidiaries until loss of
control do not belong to a package deal, prior to the loss of control, accounting treatment is
performed in accordance with the relevant policies for partial disposal of equity investments in
subsidiary without loss of control; upon loss of control, accounting treatment is performed in
accordance with general method for disposal subsidiary.
(3) Purchase of minority interests in subsidiaries
The difference between the newly acquired long-term equity investments resulting from the
purchase of minority interests and the Company's net asset share of the subsidiaries calculated on
the basis of the ratio of the newly acquired shares in the subsidiaries' net assets on an ongoing
basis from the purchase date (or the combination date) is adjusted to the equity premium in the
capital reserve in the consolidated balance sheet, or to the retained earnings if the equity premium
in the capital reserve is insufficient to offset the difference.
(4) Partially dispose of equity investments in subsidiaries without loss of control
The difference between the disposal price obtained from the partial disposal of long-term equity
investments in subsidiaries without loss of control and the corresponding subsidiaries' net asset
share on a continuing basis from the purchase date (or the combination date) of the long-term
equity investments disposed of is adjusted to the equity premium in the capital reserve in the
consolidated balance sheet, or to the retained earnings if the capital reserve is insufficient to offset
Notes to the Financial statements Page 5
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
the difference.
(VIII) Joint venture arrangements classification and accounting treatments
Joint venture arrangements are divided into joint operations and joint ventures.
When the Company is a joint party to joint venture arrangements, is entitled to the assets and
assumes the liabilities related to the arrangements, it is a joint operation.
The Company confirms the following items related to the interest share in joint operations, and
performs accounting treatments in accordance with the relevant Accounting Standards for
Business Enterprises:
(1) Recognizing assets held separately by the Company and recognizing jointly held assets based
on the Company's share;
(2) Recognizing liabilities borne separately by the Company and recognizing liabilities borne
jointly based on the Company's share;
(3) Recognizing revenue from the sale of the Company's share of joint operations outputs;
(4) Recognizing revenue from joint operations arising from the sale of output based on the
Company's share;
(5) Recognizing expenses incurred independently, and recognizing expenses incurred by joint
operations based on the Company's share.
The Company's accounting policies for investments in joint ventures are set out in Note "III. (XIV)
Long-term Equity Investments".
(IX) Determination criteria for cash and cash equivalents
When preparing the statement of cash flows, the Company's cash on hand and deposits that can be
used for payment at any time are recognized as cash. Investments that meet the four conditions of
short term (due within three months from the purchase date), strong liquidity, easy conversion into
known amounts of cash, and small risk of value changes are determined as cash equivalents.
(X) Foreign currency transactions and translation of foreign currency statements
1. Foreign currency transactions
Foreign currency transactions are recorded using the spot exchange rate at the transaction date as
the translation rate to convert the foreign currency amount into RMB.
The balance of foreign currency monetary items on the balance sheet date is translated at spot
exchange rate on balance sheet date. The resulting exchange differences are recognized in current
profit or loss, except for those arising from foreign-currency special borrowings related to the
acquisition and construction of assets eligible for capitalization, which are treated in accordance
with the principle of capitalization of borrowing costs.
2. Translation of foreign currency financial statements
Assets and liability items in the balance sheet are translated using spot exchange rate on the
balance sheet date; Owners' equity items, except for "undistributed profits", are translated at spot
exchange rate at the time of occurrence. Revenue and expense items in the income statement are
translated at spot exchange rate on the transaction date.
When disposing of an overseas operation, the translation difference of the translation of foreign-
currency financial statements related to the overseas operation is transferred from owners' equity
items to the current profit or loss in the period of disposal.
Notes to the Financial statements Page 6
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(XI) Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
1. Classification of financial instruments
Based on the Company's business model for managing financial assets and the contract cash flows
characteristics of financial assets, financial assets are classified upon initial recognition into:
financial assets measured at amortized costs, financial assets measured at fair value with changes
included in other comprehensive income financial assets (debt instruments) and financial assets
measured at fair value with changes included in current profit or loss.
Financial assets with a business model whose objective is to collect the contract cash flows and
whose contract cash flows consist solely of payments of principal and interest based on the
principal amount outstanding are classified as financial assets measured at amortized costs;
Financial assets with a business model whose objective is both to collect the contract cash flows
and to sell the financial assets and whose contract cash flows consist solely of payments of
principal and interest based on the principal amount outstanding are classified as financial assets at
fair value with changes included in other comprehensive income (debt instruments); other
financial assets beyond these are classified as financial assets measured at fair value with changes
included in current profit or loss.
For investments in non-trading equity instruments, the Company determines upon initial
recognition whether to designate them as financial assets (equity instruments) measured at fair
value with changes included in other comprehensive income.
Financial liabilities are classified upon initial recognition into: financial liabilities measured at fair
value with changes included in current profit or loss and financial liabilities measured at amortized
costs.
Financial liabilities that meet one of the following conditions can be designated upon initial
measurement as financial liabilities measured at fair value with changes included in current profit
or loss:
(1) The designation can eliminate or significantly reduce the accounting mismatch.
(2) Manage and evaluate the performance of the financial liabilities portfolio or the financial
assets and financial liabilities portfolio on a fair value basis in accordance with the enterprise's risk
management or investment strategy as set out in formal written document, and report on this basis
within the enterprise to key officers.
(3) The financial liabilities contain embedded derivatives that are subject to separate spin-off.
2. Recognition basis and measurement method for financial instruments
(1) Financial assets measured at amortized costs
Financial assets measured at amortized costs including notes receivable, accounts receivable, other
receivables, long-term receivables, debt investments, etc., are initially measured at fair value, with
related transaction costs included in the initial recognition amount; accounts receivable that do not
contain significant financing components and accounts receivable that the Company decides not to
consider the financing components of less than one year are initial measurement at the contract
transaction prices.
Interest calculated using the effective interest method during the holding period is included in
current profit or loss.
When financial assets are recovered or disposed of, the difference between the price obtained and
the book value of the financial assets is recorded in current profit or loss.
(2) Financial assets (debt instruments) measured at fair value with changes included in other
comprehensive income
Financial assets (debt instruments) measured at fair value with changes included in other
comprehensive income including receivables financing, other debt investments, etc., are initially
measured at fair value, with related transaction costs included in the initial recognition amount.
Notes to the Financial statements Page 7
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
The subsequent measurement of the financial assets is carried out at fair value, with fair value
changes recognized in other comprehensive income, except for interest calculated using the
effective interest method, impairment losses or gains, and foreign exchange profit or loss.
On derecognition, accumulated gains or losses previously included in other comprehensive
income are transferred out of other comprehensive income and included in current profit or loss.
(3) Financial assets (equity instruments) measured at fair value with changes included in other
comprehensive income
Financial assets (equity instruments) measured at fair value with changes included in other
comprehensive income including other investments in equity instruments, etc., are initially
measured at fair value, with related transaction costs included in the initial recognition amount.
The subsequent measurement of the financial assets is carried out at fair value, with fair value
changes included in other comprehensive income. Dividend received are included in current profit
or loss.
On derecognition, accumulated gains or losses previously included in other comprehensive
income are transferred out of other comprehensive income and included in retained earnings.
(4) Financial assets measured at fair value with changes included in current profit or loss
Financial assets measured at fair value with changes included in current profit or loss including
financial assets held for trading, derivative financial assets, other non-current financial assets, etc.,
are initially measured at fair value, with related transaction costs included in current profit or loss.
The subsequent measurement of the financial assets is carried out at fair value, with fair value
changes included in current profit or loss.
(5) Financial liabilities measured at fair value with changes included in current profit or loss
Financial liabilities measured fair value with changes included in current profit or loss including
financial liabilities held for trading, derivative financial liabilities, etc., are initially measured at
fair value, with related transaction costs included in current profit or loss. The subsequent
measurement of the financial liabilities is carried out at fair value, with fair value changes
included in current profit or loss.
On derecognition, the difference between the book value and the consideration paid is included in
current profit or loss.
(6) Financial liabilities measured at amortized costs
Financial liabilities measured at amortized costs including short-term borrowings, notes payable,
accounts payable, other payables, long-term borrowings, bonds payable, and long-term payables,
are initially measured at fair value, with related transaction costs included in the initial recognition
amount.
Interest calculated using the effective interest method during the holding period is included in
current profit or loss.
On derecognition, the difference between the consideration paid and the book value of the
financial liabilities is included in current profit or loss.
3. Recognition basis and measurement method for transfer of financial assets
The Company assesses the extent to which it retains the risks and rewards of ownership of
financial assets when a transfer of financial assets occurs and treats them as follows, respectively:
(1) If substantially all the risks and rewards of ownership of financial assets are transferred, the
financial assets are derecognized, and rights and obligations arising from or retained in the transfer
are recognized separately as assets or liabilities.
(2) If substantially all the risks and rewards of ownership of financial assets are retained, the
financial assets continue to be recognized.
(3) If the Company neither transfers nor retains substantially all risks and rewards of ownership
financial assets (i.e., in cases other than those in (1) and (2) of this Article), it treats the financial
Notes to the Financial statements Page 8
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
assets, according to whether or not it retains control over the financial asset, respectively as
follows:
1) If control over the financial assets is not retained, the financial assets are derecognized and the
rights and obligations arising from or retained in the transfer are recognized separately as assets or
liabilities.
2) If control of financial assets is retained, the financial assets continue to be recognized to the
extent of continued involvement in the transferred financial assets, and related liabilities are
recognized accordingly. The extent of continued involvement in the transferred financial assets is
the extent to which the Company bears the risk or rewards of changes in the value of the
transferred financial assets.
In determining whether the transfer of financial assets satisfies the above conditions for
derecognition of financial assets, the principle of substance over form is applied. The Company
distinguishes between transfer of financial assets in their entirety and partial transfer of financial
assets.
(1) When the financial assets are transferred in their entirety to satisfy the conditions for
derecognition, the difference between the following two amounts is recognized in current profit or
loss:
1) The book value of transferred financial assets on the derecognition date.
2) The sum of the consideration received for the transfer of the financial assets and the amount
corresponding to the derecognized part of the cumulative fair value changes included directly in
other comprehensive income (the financial assets involved in the transfer are financial assets at
fair value with changes included in other comprehensive income).
(2) If financial assets are partially transferred and the transferred part as a whole meets conditions
for derecognition, the book value of the entire financial assets before the transfer is divided
between the derecognized part and the continued recognition part (in this case, the retained service
assets are deemed to continue to be recognized as part of financial assets) are amortized according
to their respective relative fair values on the transfer date , and the difference between the
following two amounts is included in current profit or loss:
1) The book value of derecognized part on the derecognition date.
2) The sum of the consideration received for the derecognized part and the amount corresponding
to the derecognized part of the cumulative amount of fair value changes originally included in
other comprehensive income (the financial assets involved in the transfer are financial assets at
fair value with changes included in other comprehensive income).
If the transfer of financial assets does not satisfy the conditions for derecognition, the financial
assets continue to be recognized and the consideration received is recognized as financial
liabilities.
4. Conditions for derecognition of financial liabilities
If the current obligations for financial liabilities are fully or partially discharged, the financial
liabilities, or a part thereof, are derecognized; if the Company enters into an agreement with a
creditor to replace the existing financial liabilities by assuming new financial liabilities, and the
contractual terms of the new financial liabilities are substantially different from those of the
existing financial liabilities, the existing financial liabilities are derecognized and the new
financial liabilities are recognized simultaneously.
If all or part of the contractual terms of the existing financial liabilities are substantially modified,
the existing financial liabilities or a part thereof are derecognized, and the modified financial
liabilities are recognized as new financial liabilities.
When financial liabilities are fully or partially derecognized, the difference between the book
value of the derecognized financial liabilities and the consideration paid (including non-cash
assets transferred out or new financial liabilities assumed) is recognized in current profit or loss.
If the Company repurchases part of financial liabilities, it allocates the overall book value of the
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2023
Notes to the Financial statements
financial liabilities based on the relative fair values of the continued recognition part and
derecognized part on the repurchase date. The difference between the book value allocated to the
derecognized part and the consideration paid (including non-cash assets transferred out or new
financial liabilities assumed) is recognized in current profit or loss.
5. Methods for determining fair values of financial assets and financial liabilities
For financial instruments that have an active market, their fair values are determined based on the
quoted price in the active market. For financial instruments that do not have active market, their
fair values are determined by valuation techniques. In valuing the fair value, the Company uses
valuation techniques that are applicable in the current circumstances and are supported by
sufficient available data and other information, selects inputs that are consistent with the
characteristics of the assets or liabilities that would be considered by a market participant in a
transaction for the underlying assets or liabilities, and prioritizes the use of relevant observable
inputs. Non-observable inputs are used only when relevant observable inputs are not available or
not practicable to obtain.
6. Impairment of financial assets
The Company estimates expected credit losses on financial assets measured at amortized costs and
financial assets measured at fair value with changes included in other comprehensive income (debt
instruments), either individually or in combination, taking into account all reasonable and
supportable information including forward-looking information. The measurement of expected
credit losses depends on whether a significant increase in credit risk has occurred in the financial
assets since initial recognition.
The Company uses a simplified measurement method to measure loss provisions based on
expected credit losses over the entire life of all notes receivable, contract assets, accounts
receivable and lease receivables generated from daily operating activities such as sales of goods
and provision of services that are regulated by the revenue standard; for notes receivable,
receivables financing and other receivables classified as portfolio other than these, the Company
calculates expected credit losses by reference to historical credit loss experience, current
conditions, and projections of future economic conditions by using default risk exposures, and
expected credit loss over the life of the instruments rate within the next 12 months or over the
entire duration.
In addition to the above-mentioned simplified measurement methods and various other receivables
and temporary payments other than purchased or originated credit loss, the Company evaluates on
balance sheet date whether credit risk of relevant financial instruments has increased significantly
since the initial recognition, measures its provision for losses and recognizes expected credit
losses and changes therein, respectively.
(1) Recognition criteria and methods for provision for provision for bad debts of accounts
receivable with significant individual provision and single provision for bad debts
The Company conducts separate impairment test on accounts receivable with significant
individual amounts, and conducts separate impairment test on financial assets that have not been
impaired and includes them in financial assets portfolio with similar credit risk characteristics.
Accounts receivable for which impairment losses are recognized in individual test are no longer
included in the portfolio of accounts receivable with similar credit risk characteristics for
impairment testing.
(2) Accounts receivable with individually insignificant amount but individual provision for bad
debts
For accounts receivable whose individual amounts are not significant but have the following
characteristics, such as: accounts receivable that are in dispute with the other party or involved in
litigation or arbitration; The debtor fails to be contacted and there is no third-party pursuer; The
accounts receivable that have obvious signs that the debtor is likely to be unable to fulfill its
repayment obligations shall be subject to a separate impairment test. If any object evidence
proving the existence of impairment, impairment loss is recognized and provision for impairment
is made at the difference between present value of future cash flows and their book value.
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2023
Notes to the Financial statements
(3) Determination basis and calculation method of accounts receivable whose expected credit
losses are calculated based on credit risk portfolio
When sufficient evidence of expected credit losses cannot be assessed at a reasonable cost at the
individual instrument level, the Company divides notes receivable, accounts receivable, other
receivables, and contract assets into portfolios based on credit risk characteristics by referring to
historical credit loss experience, taking into account current conditions as well as judgments of
future economic conditions, and calculates expected credit losses on a portfolio basis.
Name of portfolio Basis for determining the portfolio
Portfolio I Portfolio of bank acceptance bills
Portfolio II Receivables from power production and sales
Portfolio III Integrated energy service receivables
Consolidated accounts receivable from related parties, other
Portfolio IV
receivables and contract asset portfolios
Portfolio V Margin, security deposit and petty cash portfolio
Export tax rebate, VAT refunded upon collection and other tax
Portfolio VI
portfolios
Other receivables and temporary payments other than the above
Portfolio VII
portfolios
(XII) Inventories
1. Classification of inventories
The Company's main business is the power production and sale of power. The Company's
inventories mainly consist of materials and supplies consumed in the course of production or
rendering of services, mainly including fuel, raw materials, spare parts and maintenance
equipment, etc.
2. Valuation method for dispatched inventories
Inventories are initially measured at the cost when acquired, but measured at weighted average
method when dispatched.
3. Basis for determining net realizable value of different categories of inventories
For goods inventories for direct sale, including finished products, stock commodities and materials
for sale, their net realizable values shall be recognized at the estimated selling prices minus the
estimated selling and distribution expenses and the relevant taxes and surcharges in the course of
normal production and operation; For material inventories required for process, in the course of
normal production and operation, their net realizable values are recognized at the estimated selling
prices of finished products minus estimated costs until completion, selling and distribution
expenses and relevant taxes and surcharges; For inventories held to execute sales contract or
service contract, their net realizable values are calculated on the basis of contract price. If the
quantities of inventories specified in sales contracts are less than the quantities held by the
Company, the net realizable value of the excess portion of inventories shall be based on general
selling prices.
Provision for inventory depreciation will be made at the end of the period on an individual basis.
However, for inventories with large quantities and low unit prices, provision for inventory
depreciation are made according to the category of inventories; For the inventories related to the
series of products manufactured and sold in the same area, and of which the final use or purpose is
identical or similar thereto, and if it is difficult to measure them by separating them from other
items, the provision for inventory depreciation reserve shall be made on a consolidation basis.
When making provision for inventory depreciation, if the factors causing any write-down of
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2023
Notes to the Financial statements
inventory value have disappeared, leading to the net realizable values of inventories higher than its
book value, the amount of write-down shall be reversed from the original provision for inventory
depreciation with the reversal being included in the current profit or loss.
4. Inventory system
The perpetual inventory system is adopted.
5. Amortization method for low-value consumables and packaging materials
(1) Low-value consumables are amortized at lump-sum method.
(2) Packaging materials are amortized at lump-sum method.
(XIII) Contract assets
If the Company has transferred the goods to the customer and has the right to receive
consideration, and the right depends on factors other than the passage of time, it is recognized as
contract assets. The Company's unconditional (i.e., subject only to the passage of time) right to
receive consideration from customers is presented separately as accounts receivable.
See Note III.(XI) 6. Impairment of financial assets, for the Company's determination method and
accounting treatment for the expected credit losses of contract assets.
(XIV) Long-term equity investments
1. Judgment criteria for common control and significant influence
Common control refers to the mutual control over certain arrangement based on relevant
agreements, however, activities related to such arrangement can be decided only when the
consensus of the participating party sharing the right of control is obtained. Where the Company
exercises common control over the investees together with other parties to the joint ventures and
enjoys the right on the investee's net assets, the investee is a joint venture of the Company.
Significant influence refers to the power to participate in making decisions on the financial and
operating policies of an enterprise, but not the power to control, or jointly control, the formulation
of such policies with other parties. If the Company can exert significant influence on investees,
investees shall be associates of the Company.
2. Determination of initial investment cost
(1) Long-term equity investments formed by business combination
Business combination under common control: if the Company pays cash, transfers non-cash assets
or assumes debts, and issues equity securities as the combination consideration, the share of book
value of acquiring the owners' equity of the combined party in the ultimate controller's
consolidated financial statements is taken as the initial investment cost of long-term equity
investments on the combination date. In case the Company can exercise control over the investee
under common control for additional investments or other reasons, the initial investment cost of
long-term equity investments should be recognized at the share of book value of net asset of the
combined party after the combination in the consolidated financial statements of the ultimate
controller on the combination date. If there is a difference between the initial investment cost of
the long-term equity investments on the combination date and the sum of the book value of the
long-term equity investments before combination and the book value of the consideration newly
paid by shares acquired on the combination date, the difference shall be used to adjust the equity
premium; and if the equity premium is insufficient to be offset, retained earnings shall be offset.
Business combination not under common control: the Company shall use the combination cost
determined on the purchase date as the initial investment cost of long-term equity investments. If
it is possible to exercise control investees that is not under common control due to additional
investment or other reasons, the sum of the book value of the original equity investments plus the
cost of the new investment will be used as initial investment cost accounted under the cost method.
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Notes to the Financial statements
(2) Long-term equity investments obtained through other means
For long-term equity investments acquired from cash payment, the initial investment cost is the
actually paid purchasing cost.
For the long-term equity investments acquired by issuing equity securities, the initial investment
cost is the fair value of the issued equity securities.
On the premise that exchange of non-monetary assets is of commercial nature and the fair value of
the asset traded in and out can be measured reliably, the initial investment cost of long-term equity
investments traded in with non-monetary asset should be determined according to the fair value of
the asset traded out and relevant taxes and surcharges payable, unless any concrete evidence
indicates that the fair value of the asset traded in is more reliable; For exchange of non-monetary
assets that do not meet the above premise, the book value of the asset traded out and relevant taxes
and surcharges payable should be recognized as the initial investment cost of the long-term equity
investments traded.
For long-term equity investments obtained through debt restructuring, its book value is determined
by the fair value of the abandoned creditor's right and the other taxes directly attributable to the
assets, and the difference between the fair value of the abandoned creditor's right and the book
value is included into the current profit or loss.
3. Subsequent measurements and recognition of profit or loss
(1) Long-term equity investments accounted for under the cost method
The Company's long-term equity investments in subsidiary is accounted for under the cost method.
Except for the actual price paid for acquisition of investment or the cash dividends or profits
contained in the consideration which have been declared but not yet distributed, the Company
recognizes the investment income in the current period at the cash dividends or profits declared by
the investee.
(2) Long-term equity investments accounted for under the equity method
Long-term equity investments in associates and joint ventures are accounted for under the equity
method. If the initial investment cost is in excess of the share of fair value of identifiable net assets
in the investee when the investment is made, the difference will not be adjusted to the initial
investment cost of long-term equity investments; if the initial investment cost is in short of the
share of fair value of identifiable net assets in the investee when the investment is made, the
difference will be included in the current profit or loss.
The Company should recognize the investment income and other comprehensive income
respectively in accordance with its share of net profit or loss and other comprehensive income
realized by the investees that it should enjoy or share, and adjust the book value of long-term
equity investments; The book value of long-term equity investments will be reduced accordingly
in the light of the profits or cash dividends that the investee declares to distribute; For other
changes in the owners' equity of investees other than net profit or loss, other comprehensive
income and profit distribution, the book value of long-term equity investments is adjusted and
included in owners' equity.
When confirming the shares of net profit or loss of the investee which the Company shall enjoy,
based on the fair value of the identifiable net assets of the investee at the time of acquisition of the
investment, the Company confirms the net profit of the investee after adjustment in accordance
with the Company's accounting policies and the accounting period. During the period when the
investment is held, if the investees prepares consolidated financial statements, the accounting shall
be made based on the amount attributable to investees in net profit, other comprehensive income
and other changes in owners' equity in the consolidated financial statements.
When the Company recognizes the losses of investees that it should share, it shall proceed in the
following order: Firstly, reduce book value of long-term equity investments. Secondly, if the book
value of long-term equity investments is not sufficient to offset it, the investment losses will
continue to be recognized to the extent of book value of other long-term interests that essentially
constitute a net investment of the investees, to offset the book value of long-term receivables, etc.
Notes to the Financial statements Page 13
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Notes to the Financial statements
Finally, after the above processing, if the enterprise still bears additional obligations according to
the investment contract or agreement, the estimated liabilities will be recognized based on the
estimated obligations and included in the current investment losses.
(3) Disposal of long-term equity investments
When disposing of long-term equity investments, the difference between the book value and the
actual price obtained shall be included in the current profit or loss.
When disposing of long-term equity investments accounted for under the equity method, the
portion originally included in other comprehensive income will be accounted for in a
corresponding ratio on the same basis as the investees' direct disposal of relevant assets or
liabilities. The owners' equity recognized due to the changes in owners' equity other than net profit
or loss, other comprehensive income, and profit distribution shall be carried forward to the current
profit or loss on a proportional basis, except for other comprehensive income arising from the
investee's remeasurement of changes in net liabilities or net assets under the defined benefit plans.
If common control or significant influence on investees is lost due to the disposal of part equity
investments or other reasons, the remaining equity after disposal shall be calculated in accordance
with recognition and measurement standards of financial instruments. The difference between its
fair value and book value at the date of loss of common control or significant influence is
recognized in the current profit or loss. For other comprehensive income recognized due to the
original equity investments accounted for under the equity method, it shall be accounted for on the
same basis as the investees' direct disposal of relevant assets or liabilities when the accounting for
equity method is no longer adopted. The owners' equity recognized due to other changes in
owners' equity of the investee other than net profit or loss, other comprehensive income and profit
distribution will all be transferred to the current profit and loss when accounted for under the
equity method is terminated.
If the Company loses right of control over investees due to the disposal of part of equity
investments or increase in capital of the subsidiary by other investors, resulting in a decrease in the
Company's shareholding ratio, when preparing individual financial statements, if the remaining
equity can exercise common control or significant influence over investees, it shall be accounted
by under equity method, which shall be deemed to be adjusted under the equity method since the
time of acquisition. If the remaining equity cannot common control or exert significant influence
on investees, it shall be accounted for in accordance with the relevant provisions of recognition
and measurement standards of financial instruments, and the difference between its fair value and
book value on the date of loss of control shall be included in the current profit or loss.
Where the equity disposed of are acquired through business combination as a result of additional
investment and other reasons, if the remaining equities after disposal are calculated under the cost
method or equity method upon preparation of separate financial statements, other comprehensive
income and other owners' equity recognized in equity investments held before the purchase date as
a result of accounting under equity method shall be carried forward pro rata; If the remaining
equity after disposal is accounted for in accordance with recognition and measurement standards
of financial instruments, other comprehensive income and other owners' equity will be carried
forward.
(XV) Investment properties
The investment properties refer to the properties held for earning rentals or/and capital
appreciation, including leased land use right, land use right held for transfer upon appreciation,
and leased building (including self-built buildings or buildings developed for renting or buildings
under construction or development for future renting).
The Company measures its existing investment properties under the cost model. For investment
properties measured under the cost model - in terms of buildings for renting, the same depreciation
policy as that for fixed assets of the Company is adopted; for land use rights for renting, the same
amortization policy as that for intangible assets is adopted.
Notes to the Financial statements Page 14
Shenzhen Nanshan Power Co., Ltd.
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Notes to the Financial statements
(XVI) Fixed assets
1. Recognition conditions of fixed assets
Fixed assets refer to the tangible assets of the Company held for the purpose of producing
commodities, rendering services, renting or business management with service life exceeding one
accounting year. Fixed assets are recognized when the following conditions are met at the same
time:
(1) It is very likely that the economic benefits associated with the fixed assets will flow into the
enterprise;
(2) The cost of the fixed assets can be measured reliably.
2. Depreciation method
The Company provides the depreciation based on the production method within its service life
after deducting estimated net residual value and accumulated provision for impairment from the
cost of gas turbine generator unit; Other fixed assets are depreciated under straight-line method
over their service life based on their costs less estimated net residual value and accumulated
provision for impairment.
If service life of the various components of fixed assets are different or they provide economic
benefits to the enterprise in different ways, different depreciation rates or depreciation method
should be selected and depreciation should be accrued separately.
The depreciation method, depreciation life, residual rate and annual depreciation rate of fixed
assets are as follows:
Annual
Depreciati Depreciation Residual
Category depreciation
on method life (years) rate(%)
rate (%)
Straight-
Houses and buildings line 20 years 10 4.5
method
Machinery equipment gas Workload
10
turbine generator unit method
Machinery equipment Straight-
(except for gas turbine line 15-20 years 10 4.5-6
generator unit) method
Straight-
Means of transport line 5 years 10 18
method
Straight-
Others line 5 years 10 18
method
3. Subsequent expenditure
Subsequent expenditures on fixed assets refer to renovation and reconstruction expenses, repair
costs, etc. incurred during the use of fixed assets. Subsequent expenditures such as the renewal
and transformation of fixed assets, if they meet the conditions for capitalization, shall be included
in the cost of fixed assets, and book value of the replaced part shall be deducted; The repair costs
of fixed assets that do not meet the conditions for capitalization are included in the current profit
or loss when incurred.
(XVII) Construction in progress
The Company's construction in progress are classified into infrastructure projects, technical
transformation projects, integrated energy service, information construction, etc.
The initial book values of the fixed assets are stated at necessary expenditures incurred before
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Notes to the Financial statements
construction in progress reaches the working conditions for its intended use. For construction in
progress that has reached working conditions for its intended use but for which the completion of
settlement has not been handled, it shall be transferred into fixed assets at the estimated value
according to the project budget, construction price, actual cost, etc. from the date when it reaches
the working conditions for its intended use. And the fixed assets shall be depreciated in
accordance with the Company’s policy on depreciation of fixed assets. Adjustment shall be made
to the originally and provisionally estimated value based on the actual cost after the completion of
settlement is handled, but depreciation provided will not be adjusted.
The standards for construction in progress to be transferred to fixed assets when they reach the
condition for its intended use are as follows:
Item Criteria and time point for transfer to fixed assets
(1) The main construction project and supporting projects have been
substantially completed; (2) When the construction project meets the
requirements for predetermined design, it must be accepted by the survey,
design, construction, supervision and other entities; (3) Acceptance by
Houses and external departments such as fire protection department, state-owned land
buildings department and planning department, etc.; (4) If a construction project has
reached the intended usable state but has not yet completed the final
settlement, it shall be transferred to fixed assets at an estimated value
based on the actual cost of the project from the date on which it reaches
the intended usable state.
(1) Relevant equipment and other supporting facilities have been installed;
(2) The equipment can maintain normal and stable operation for a period
Machinery
of time after debugging; (3) The production equipment can stably produce
equipment
qualified products over a period of time; (4) The equipment has been
inspected and accepted by asset managers and users.
(XVIII) Borrowing costs
1. Recognition principles for capitalization of borrowing costs
The borrowing costs include borrowing interest, amortization of discounts or premiums, auxiliary
expenses, and exchange differences arising from foreign currency borrowings, etc.
The borrowing costs incurred by the company that can be directly attributed to the purchase,
construction or production of assets that meet the capitalization conditions shall be capitalized and
included in the cost of the related assets; Other borrowing costs are recognized as expenses based
on the amount incurred when incurred and included in the current profit or loss.
Assets eligible for capitalization refer to fixed assets, investment properties, inventories and other
assets which may reach their intended use or sale status only after long-time acquisition and
construction or production activities.
Capitalization of borrowing costs begins when the following conditions are met at the same time:
(1) Asset expenditures having occurred. Asset expenditures include expenditures in the form of
cash payments, transfers of non-cash assets or interest-bearing debts for the acquisition,
construction or production of assets that meet capitalization conditions;
(2) Borrowing costs having been incurred;
(3) The purchase, construction or production activities necessary to bring the asset to its intended
usable or salable state having begun.
2. Period of capitalization of borrowing costs
The capitalization period refers to the period from the time point at which capitalization of
borrowing costs commences to the time point at which capitalization ceases, excluding the period
during which capitalization of borrowing costs is suspended.
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Notes to the Financial statements
When the acquisition, construction or production of assets that meet the capitalization conditions
reaches the intended usable or salable state, the capitalization of borrowing costs ceases.
When part of the projects in the acquisition, construction or production of assets that meet the
capitalization conditions are completed and can be used independently, the capitalization of
borrowing costs of this part of the assets ceases.
If each part of an asset purchased, constructed or produced is completed separately, but it cannot
be used or sold until the entirety is completed, capitalization of borrowing costs stops when the
entire asset is completed.
3. Capitalization suspension period
If an asset that meets the capitalization conditions is abnormally interrupted during the acquisition,
construction or production process, and the interruption lasts for more than 3 months, the
capitalization of borrowing costs is suspended; if the interruption is a necessary procedure for the
acquired, constructed or produced assets that meet the capitalization conditions to reach the
intended usable or salable state, the capitalization of borrowing costs continues. Borrowing costs
incurred during the interruption period are recognized as current profit or loss, and the
capitalization of borrowing costs continues until the acquisition, construction or production
activities of the assets restart.
4. Calculation method for capitalization of borrowing costs rate and capitalization amount
For special borrowings for the purpose of purchasing, constructing or producing assets eligible for
capitalization, the capitalization amount of borrowing costs is determined by the actual borrowing
costs incurred in the period of the special borrowing, less the amount of interest income earned on
the unused borrowed funds deposited in the bank or investment income earned on the temporary
investment.
For general borrowings taken up for the acquisition or production of assets eligible for
capitalization, the amount of borrowing costs to be capitalized is determined by multiplying
weighted average of the asset expenditures that exceed special borrowings by the capitalization
rate of the general borrowings general borrowings used. The capitalization rate is calculated and
determined based on the weighted average interest rate of general borrowings.
(XIX) Intangible assets
Intangible assets including land use right, patented technology, software, etc., are initially
measured at actual cost.
1. Valuation method of intangible assets
(1) The Company initially measures intangible assets at cost when acquiring them;
The cost of outsourced intangible assets includes the purchase price, relevant taxes and other
expenses directly attributable to bringing the assets to the intended use. If the purchase price of
intangible assets is deferred beyond normal credit conditions and is essentially financing in nature,
the cost of intangible assets is determined based on the present value of the purchase price.
The book value of intangible assets acquired in a debt restructuring for use by the debtor against a
debt are determined based on the fair value of the claim waived and other costs directly
attributable to bringing the asset to its intended use, such as taxes, and the difference between the
fair value of the claim waived and the book value of the intangible assets is recognized in current
profit or loss.
Provided that the exchange of non-monetary assets has commercial substance and the fair value of
both the assets exchanged in and the assets exchanged out can be measured reliably, the intangible
assets exchanged in by exchange of non-monetary assets are recorded at their fair value based on
the fair value of the assets exchanged out, unless there is conclusive evidence that the fair value of
the assets exchanged in is more reliable; For exchange of non-monetary assets that do not meet the
above prerequisites, the book value of the exchanged assets and related taxes payable are
recognized as the cost of the intangible assets exchanged, and profit or loss is derecognized.
Notes to the Financial statements Page 17
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Notes to the Financial statements
(2) Subsequent measurement
Analyze and determine service life of intangible assets when acquiring them.
For intangible assets with limited service life, they are amortized on straight-line method within
the period that they bring economic benefits to the enterprise; if it is not foreseeable that intangible
assets will bring economic benefits to the enterprise, they are regarded as intangible assets with
indefinite service life and are not amortized.
2. Estimated service life of intangible assets with limited service life
For Intangible assets with limited service life, their original values less the estimated net residual
value and the cumulative amount of the provision for impairment that has been made are
amortized in equal installments using the straight-line method over the estimated service life from
the time they are available for use. Intangible assets with indefinite service life are not amortized.
At the end of the period, service life and amortization method of intangible assets with limited
service life are reviewed and changes, if any, are treated as changes in accounting estimates. The
specific amortization period are as follows:
Amortization Amortization period Basis for use
Category
method (year)
Within the validity
Straight-line
Land use right 30-50 period of the land
method
title certificate
Patented Straight-line
10 Patent certificate
technology method
Straight-line Software availability
Software 5
method period
3. Basis for judgment of intangible assets with indefinite service life and procedures for
reviewing their service life
When reviewing the service life of intangible assets with indefinite service life, the service life is
estimated and amortized in accordance with the amortization policy for intangible assets with
limited service life, if there is evidence that the period over which the intangible asset will provide
economic benefits to the enterprise is foreseeable.
4. Specific criteria for dividing research and development stages
Expenditures on the Company's internal research and development projects are divided into
research stage expenditures and development stage expenditures.
Research stage: the stage of creative and planned investigation and research activities to obtain
and understand new scientific or technical knowledge.
Development stage: the stage in which research results or other knowledge are applied to a certain
plan or design to produce new or substantially improved materials, devices, products, etc. before
commercial production or use.
Development stage expenditures meet specific criteria for capitalization
Expenditures during the development stage of internal research and development projects are
recognized as intangible assets when the following conditions are met:
1. Being technically feasible to complete the intangible assets so that it can be used or sold;
2. Having the intention to complete the intangible assets and use or sell them;
3. The manner in which intangible assets generate economic benefits (including where it can be
demonstrated that a market exists for the product to be produced using such intangible assets or
that a market exists for the intangible assets themselves and that the intangible assets are to be
used internally) demonstrating their usefulness;
4. Having sufficient technical, financial and other resource support to complete the development
of the intangible assets, and having the ability to use or sell the intangible assets;
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Notes to the Financial statements
5. Expenditures attributable to the development stage of the intangible assets being able to be
measured reliably.
(XX) Asset impairment
Long-term assets such long-term equity investments, investment properties measured under the
cost model, fixed assets, construction in progress, and intangible assets with limited service life
are subject to impairment test if there are signs of indications of impairment on the balance sheet
date. If the results of impairment test indicate that the recoverable amount of assets is less than its
book value, a provision for impairment is made based on the difference and the assets are
recognized as impairment losses. The recoverable amount is the net of the fair value of the assets
less costs of disposal and the current value of the expected future cash flows from the assets
(whichever is higher). Provision for asset impairment is calculated and recognized on the basis of
individual assets. If it is difficult to estimate the recoverable amount of an individual asset, the
recoverable amount of an asset group is determined based on the asset group to which the asset
belongs. The asset group is the smallest combination of assets that can independently generate
cash inflows.
Goodwill, intangible assets with indefinite service life, and intangible assets that have not yet
reached a usable state are subject to impairment test at least at the end of each year.
The Company performs the impairment test for goodwill. For the book value of goodwill arising
from a business combination, the Company amortizes it to the relevant asset group on a reasonable
method from the purchase date; if it is difficult to be amortized to the relevant asset group, it is
amortized to the relevant portfolio of asset groups. When amortizing the book value of goodwill,
the Company amortizes it based on the relative benefits that the relevant asset groups or portfolio
of asset groups can obtain from the synergies of business combination, and performs goodwill
impairment test on this basis.
In the impairment test for the relevant asset group or combination of asset groups containing
goodwill, if there are indications of impairment for the asset group or combination of asset groups
related to goodwill, the asset group or combination of asset groups that does not contain goodwill
is first tested for impairment, the recoverable amount is calculated and compared with the relevant
book value, and corresponding impairment losses are recognized. An impairment test is then
performed on the asset group or combination of asset groups containing goodwill by comparing
the book value of the relevant asset group or combination of asset groups (including the part of the
book value of the goodwill apportioned to it) with its recoverable amount. If the recoverable
amount of the relevant asset group or combination of asset groups is less than its book value,
impairment losses on goodwill are recognized.
Once the above-mentioned asset impairment losses are recognized, they will not be reversed in
subsequent accounting periods.
(XXI) Long-term deferred expenses
1. Amortization method for long-term deferred expenses
The Company's long-term deferred expenses refer to various expenses that have been incurred but
the benefit period is more than one year (excluding one year). Long-term deferred expenses are
amortized in installments according to the benefit period of the expense item. If a long-term
deferred expense item cannot benefit future accounting periods, all the amortized value of the item
that has not been amortized will be transferred to the current profit or loss.
The renovation of lease premises is recognized as long-term deferred expenses and amortized over
the shorter of the following two periods:
(1) The estimated service life of the renovation (the estimated time until the next renovation);
(2) The estimated remaining service life of the main structure of the property
The Company's subsequent expenditure that do not meet the conditions for fixed assets
Notes to the Financial statements Page 19
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
recognition, such as capital repairs, are recognized as long-term deferred expenses in the year they
occur, and are subsequently amortized in installments during the benefit period.
2. Amortization period of long-term deferred expenses
Item Amortization period
Renovation of The estimated service life of the renovation and the estimated remaining
rented fixed assets service life of the main structure of the property (whichever is shorter).
Expenditures for
capital repairs of Overhaul cycle for gas generator unit
fixed assets
(XXII) Contract liabilities
Contract liabilities refer to the Company's obligation to transfer goods or services to customers for
consideration received or receivable from customers. Contract assets and contract liabilities under
the same contract are presented in the net term.
(XXIII) Employee compensation
1. Accounting treatments of short-term compensation
During the accounting period when employees provide services for the Company, the Company
recognizes the actual short-term compensation as a liability and includes it in the current profit or
loss or related asset costs.
The Company contributes social insurance premiums and housing fund for its employees, as well
as labor union fund and employee education expenses withdrawn as required, and calculates and
determines the corresponding amount of employee compensation in accordance with the
prescribed accrual basis and accrual ratio during the accounting period in which the employees
render services to the Company.
For non-monetary employee benefits, if they can be measured reliably, they are measured at fair
value.
2. Accounting treatments for post-employment benefits
Defined contribution plans
The Company pays basic endowment insurance and unemployment insurance for its employees in
accordance with relevant regulations of the local government. During the accounting period when
employees provide services to the Company, the amount payable is calculated based on the
payment base and ratio stipulated by the local government, and is recognized as a liability and
included in current profit or loss or related asset costs.
In addition to basic endowment insurance, the Company has also established an enterprise annuity
payment system (supplementary endowment insurance)/enterprise annuity plan in accordance with
the relevant policies of the national enterprise annuity system. The Company pays contributions to
local social insurance institutions/annuity plans based on a certain ratio of total employee wages,
and includes the corresponding expenditures in current profit or loss or related asset costs.
3. Accounting treatments for dismissal benefits
When the Company cannot unilaterally withdraw dismissal benefits provided by the termination
of labor relationship plan or redundancy proposal, or when it recognizes the costs or expenses
related to the restructuring involving the payment of dismissal benefits (whichever is earlier),
employee compensation liabilities arising from dismissal benefits are recognized and included in
current profit or loss.
(XXIV) Estimated liabilities
1. Recognition criteria for estimated liabilities
Notes to the Financial statements Page 20
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
The Company recognizes the obligations related to contingencies such as litigation, debt
guarantees, onerous contracts, restructuring matters, etc. as estimated liabilities when the
following conditions are met at the same time:
(1) The obligation being the current obligation of the Company;
(2) The performance of the obligation being likely to cause economic benefits to flow out the
Company;
(3) The amount of the obligation being able to be measured reliably.
2. Measurement methods for various types of estimated liabilities
(1) When the obligations generated from such contingencies as external guarantee, contentious
matters, products quality guarantees and onerous contracts are present obligations of the Company,
the performance of such obligations is likely to result in outflow of economic benefits from the
Company and if the amount of the obligations can be measured reliably, such obligations shall be
recognized as estimated liabilities by the Company.
(2) The estimated liabilities of the Company are initially measured at the best estimate of expenses
required for the performance of relevant present obligations, and the book value of the estimated
liabilities shall be reviewed on the balance sheet date.
The Company's estimated liabilities are initially measured at best estimate of the expenditures
required to perform the related present obligations.
When determining best estimate, the Company comprehensively considers factors such as risks,
uncertainty and time value of money related to contingencies. Where the effect on the time value
of money is material, the best estimate is determined by discounting the relevant future cash
outflows.
Best estimate is treated separately as follows:
If there being a continuous range (or interval) of required expenditures, and various outcomes
within the range are equally likely to occur, best estimate is determined based on the middle value
of the range, that is, the average of the upper and lower limits.
If there being no continuous range (or interval) of required expenditures, or if there being a
continuous range but the probabilities of occurrence of the various results within the range are not
the same, the best estimate is determined on the basis of the most probable amount to be incurred
if the contingency relates to a single item; if the contingency involves multiple projects, best
estimate is calculated and determined based on various possible outcomes and related probabilities.
If all or part of the Company's expenses required to settle estimated liabilities are expected to be
compensated by a third party, the compensation amount is recognized separately as an asset when
it is basically certain that it can be received. The recognized compensation amount shall not
exceed the book value of estimated liabilities.
(XXV) Revenue
1. General principles
If the Company fulfills its performance obligations under a contract, that is, when the customer
obtains right of control of the relevant goods or services, revenue is recognized. Performance
obligations are contractual commitments in which the Company transfers clearly distinguishable
goods or services to the customer. Obtaining right of control of the relevant goods or services
refers to the ability to control the use of the goods or the provision of the services and to derive
virtually all of the economic benefits therefrom.
Notes to the Financial statements Page 21
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
If one of the following conditions is met, it is performance obligations to be fulfilled within a
certain period of time, and the Company recognizes revenue over a period of time in accordance
with the performance progress: (1) the customer obtaining and consuming the economic benefits
arising from the Company's performance at the same time as the Company's performance; (2) the
customer being able to control the goods under construction during the Company's performance;
(3) the goods produced by the Company during the performance of the contract having
irreplaceable uses, and the Company having the right to collect payment for the cumulative
performance part completed so far during the entire contract period. Otherwise, the Company
recognizes revenue at the time point at which the customer obtains the right of control of the
related goods or services.
2. Sales with quality assurance clauses
For sales with a quality guarantee clause, if the quality guarantee provides a separate service to the
customer in addition to the assurance that the goods or services sold meet standards specified
herein, the quality guarantee constitutes an individual performance obligation.Otherwise, the
Company accounts for the quality assurance liability in accordance with the provisions of the
Accounting Standards for Business Enterprises No. 13 - Contingencies.
3. Main responsible persons and agent
The Company identifies itself as the person with main liabilities or the agent when engaging in
transactions based on whether it has the right of control of the goods or services before
transferring them to the customer.If the Company has the right of control of the goods or services
before transferring them to the customer, the Company identifies itself as the person with main
liabilities and recognizes revenue based on the total consideration received or receivable;
otherwise, the Company identifies itself as the agent and recognizes revenue based on the amount
of commissions or handling charges that may be received. This amount is determined according to
the net amount after deducting the price payable to other related parties from the total
consideration received or receivable, or according to the specified commissions amount, ratio or
other factors.
4. Principles
If the Company fulfills its performance obligations under a contract, that is, when the customer
obtains right of control of the relevant goods or services, revenue is recognized. Obtaining right of
control of the relevant goods or services refers to the ability to control the use of the goods or the
provision of the services and to derive virtually all of the economic benefits therefrom.
(1) Revenue from power production and sales
When the power is transmitted to the power grid company specified in the power sales contract,
which means the power grid company has obtained the right of control of the power, the Company
shall recognize the reported sales revenue.
(2) Revenue from integrated energy services
Revenue from integrated energy services between the Company and its customers mainly includes
revenue from engineering labor and services such as operation and maintenance, management,
commissioning, and overhaul. If multiple performance obligations are involved, they shall be split
reasonably. The equipment sales shall be processed according to the sales of goods business. The
provision of labor and services is generally dealt with according to the output method based on the
performance obligation fulfilled within a certain time period. Requirements are as follows:
1) Sales of supporting equipment
For sales of equipment, revenue shall be recognized when the customer obtains the right of control
the equipment. In general, the recognition time point shall be the time when the customer signs
after receiving the completed or delivered products. Based on the terms of the Contract, the
required attachments for revenue recognition include but are not limited to the sales contract,
commodity shipping order, customer receipt sheet, equipment acceptance sheet or customs
declaration form, etc.
2) Labor and services provided
Notes to the Financial statements Page 22
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
① The recognition and settlement of revenue from such business shall comply with the provisions
of the business contract signed by both parties. At the end of each settlement period, the necessary
documents stipulated in the Contract, such as the attendance sheet, service application form, etc.
confirmed by both parties shall be provided as the proof of the cumulative revenue recognition of
the settlement period and materials for collecting service price.
① On each balance sheet date within the settlement period, revenue shall be tentatively estimated
based on the performance progress. When using the output method to determine the performance
progress, the progress is usually determined in combination with the actual measured completion
progress, assessment of achieved results, achieved milestones, progress of the schedule, completed
or delivered products and other output indicators.
(XXVI) Contract costs
Costs of obtaining the contract
The incremental costs incurred by the Company to obtain the Contract (that is, costs which would
not have been incurred without obtaining the Contract) that may be recovered shall be recognized
as an asset and amortized on the same basis as the revenue recognition of goods or services related
to the asset. In addition, the asset shall be included in the current profit or loss. If the amortization
period of the asset does not exceed one year, the asset shall be included in the current profit or loss
when incurred. Other expenses incurred by the Company to obtain the contract shall be included
in the current profit or loss when incurred, unless otherwise the expenses are borne by the
customer.
Costs of performing the contract
The costs incurred by the Company to perform the Contract are recognized as an asset if they do
not fall within the scope of other provisions specified in the Accounting Standards for Business
Enterprises other than the revenue standards and meet all the following conditions: (1) when the
cost is directly related to an existing or expected contract; (2) when the cost increases the
Company resources for fulfilling performance obligations in the future; (3) when the cost is
expected to be recovered. The above-mentioned asset shall be amortized on the same basis as the
revenue recognition of goods or services related to the asset and included in the current profit or
loss.
Impairment of contract costs
When recognizing impairment losses of assets related to contract costs, the Company shall first
recognize impairment losses of other assets related to the Contract that are recognized in
accordance with other relevant accounting standards for business enterprises; then, if book value is
higher than difference between the remaining consideration expected to be obtained by the
Company for the transfer of the goods related to the asset and the estimated cost to be incurred for
the transfer of the related goods, provision for impairment shall be made for the excess, and it
shall be recognized as the asset impairment loss.
If the factors of impairment in the previous period subsequently changed, causing the
aforementioned difference to be higher than the book value of the asset, provision for asset
impairment that has been made previously shall be reversed and the higher part shall be included
in the current profit or loss, but the book value of the asset after the reversal shall not exceed the
book value of the asset on the date of reversal assuming no provision for impairment is made.
(XXVII) Government subsidies
1. Type
Government subsidies refer to the monetary and non-monetary assets obtained by the Company
from the government free of charge. Government subsidies are divided into asset-related
government subsidies and income-related government subsidies.
Asset-related government subsidies refer to government subsidies obtained by the Company and
Notes to the Financial statements Page 23
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
used to purchase, construct or otherwise form long-term assets. Income-related government
subsidies refer to government subsidies other than asset-related government subsidies.
2. Recognition time point
At the end of the reporting period, if there is evidence that the Company can meet the relevant
conditions stipulated in the financial support policy and is expected to receive financial support
funds, government subsidies shall be recognized based on the amount receivable. Otherwise,
government subsidies shall be recognized when they are actually received.
If government subsidies are monetary assets, they shall be measured at the amount received or
receivable. If government subsidies are non-monetary assets, they shall be measured at the fair
value; If the fair value cannot be obtained reliably, government subsidies shall be measured at the
nominal amount (RMB 1). Government subsidies measured at the nominal amount shall be
directly included in the current profit or loss.
3. Accounting treatment
Asset-related government subsidies shall be used to offset the book value of the relevant assets or
recognized as the deferred income. Government subsidies which are recognized as the deferred
income shall be included in the current profit or loss in installments according to a reasonable and
systematic method within service life of the relevant assets (if the government subsidies are
related to the daily activities of the Company, the subsidies shall be included in other income; if
the government subsidies are not related to the daily activities of the Company, the subsidies shall
be included in non-operating revenue);
income-related government subsidies that are used to compensate the Company for relevant costs
or losses in subsequent periods shall be recognized as the deferred income and included in the
current profit or loss (if the government subsidies are related to the daily activities of the Company,
the subsidies shall be included in other income; if the government subsidies are not related to the
daily activities of the Company, the subsidies shall be included in non-operating revenue) or used
to offset relevant costs or losses; if the subsidies are used to compensate for the relevant costs or
losses incurred by the Company, the subsidies shall be directly included in the current profit or
loss (if the government subsidies are related to the daily activities of the Company, the subsidies
shall be included in other income; if the government subsidies are not related to the daily activities
of the Company, the subsidies shall be included in non-operating revenue) or used to offset
relevant costs or losses.
The policy-based preferential loan interest subsidies obtained by the Company will be accounted
for differently in the following two situations:
(1) if the central finance allocates interest subsidies to the lending bank, and the lending bank
provides loans to the Company at a policy-based preferential interest rate, the Company will use
the actual loan amount received as the entry value of the loan and calculate related borrowing
costs based on the loan principal and the policy-based preferential interest rate.
(2) if the central finance directly allocates interest subsidies to the Company, the Company will
use the corresponding interest subsidies to offset related borrowing costs.
(XXVIII) Deferred tax assets and deferred tax liabilities
For deductible temporary differences, deferred tax assets shall be recognized with the taxable
income that is likely to be obtained in the subsequent period to offset deductible temporary
differences as the limit. For deductible losses and tax credits which can be carried forward to
subsequent years, the corresponding deferred tax assets shall be recognized with the future taxable
income that is likely to be obtained to offset deductible losses and tax credits as the limit.
For taxable temporary differences, except in special circumstances, the deferred tax liabilities shall
be recognized.
Special circumstances in which deferred tax assets or deferred tax liabilities are not recognized
include: initial recognition of goodwill; other transactions or matters, except for business
Notes to the Financial statements Page 24
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
combination, that affect neither accounting profits nor taxable income (or deductible losses) when
incurred.
When the Company is entitled to the legal right to settle on a net basis and intends to settle on a
net basis or obtain assets and pay off liabilities at the same time, the current income tax assets and
current income tax liabilities shall be reported at the net amount after offsetting.
When the Company is entitled to settle current income tax assets and current income tax liabilities
on a net basis, and deferred tax assets and deferred tax liabilities are related to income tax levied
by the same taxation department on the same taxpayer or different taxpayers, but in each
significant period when deferred tax assets and liabilities are reversed, if the taxpayer involved
intends to settle current income tax assets and liabilities on a net basis or obtain assets and pay off
liabilities at the same time, deferred tax assets and deferred tax liabilities shall be reported at the
net amount after offsetting.
(XXIX) Lease
Lease refers to a contract whereby the lessor transfers the right to use an asset to the lessee in
exchange for consideration for a certain period of time.
1. The Company acts as a lessee
The Company shall determine the right-of-use assets on the starting date of the lease term and
recognize lease liabilities based on the present value of the unpaid lease payments. Lease
payments include fixed payments and amounts payable when the purchase option or option to
terminate lease is likely to be exercised. Variable rent determined based on a certain ratio of sales
amount shall not be included in lease payments and shall be included in the current profit or loss
when actually incurred.
The Company's right-of-use assets include leased houses and buildings, machinery equipment,
means of transport, computers and electronic equipment, etc.
For short-term leases with lease term of no more than 12 months and leases of low value assets
with a single asset at a low value when it is new, the Company will not to recognize right-of-use
assets and lease liabilities, and the relevant rental expenses will be calculated based on the
straight-line method in each period during lease term and included in the current profit or loss or
related asset costs.
2. The Company acts as a lessor
Financing lease refers to the lease that basically transfers all the risks and rewards related to the
ownership of leased assets. Other leases are operating leases.
(1) Operating leases
When the Company rents out its own buildings, machinery equipment and means of transport, the
rental income from operating leases is recognized in accordance with the straight-line method
during lease term. Variable rents, which are determined by the Company at a certain percentage of
sales, are included in rental income when actually incurred.
(2) Financing lease
On the commencement date of the lease term, the Company recognizes the finance lease
receivables for the financing lease and terminates the derecognition of related assets. The
Company lists finance lease receivables as long-term receivables, while the finance lease
receivables collected within one year (including) from the balance sheet date are listed as non-
current assets due within one year.
(XXX) Special reserves
The Safety production costs extracted from the Company's power production and sales business in
accordance with national regulations are included in the cost of related products or current profit
Notes to the Financial statements Page 25
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
or loss as well as in the "special reserve" account. The currently accrual standard is based on
operating revenue of the previous year, using an excess regressive method to determine the accrual
amount for the current year. Such amount shall be withdrawn evenly every month, and be included
in the cost of related products or current profit or loss as well as in the "special reserve" account.
When the Company uses special reserve, the amount shall be charged directly to the special
reserve if it belongs to cost of spending; if fixed assets are formed, they will be recognized as
fixed assets when such assets reach the intended usable state; at the same time, special reserve is
offset according to the cost of fixed assets formed, and accumulated depreciation of the same
amount shall be recognized. Such fixed assets will no longer be depreciated in subsequent periods.
(XXXI) Changes in significant accounting policies and accounting estimates
1. Significant changes in accounting policies
(1) Interpretation No. 16 of Accounting Standards for Business Enterprises
The Ministry of Finance issued the Interpretation No. 16 of Accounting Standards for Business
Enterprises on December 13, 2022. The Company implemented the "Initial recognition of deferred
income taxes related to assets and liabilities arising from a single transaction is not applicable"
from January 1, 2023, and adjusted the cumulative impact to the initial retained earnings and other
related financial statement items for the earliest period in which the financial statements are
presented. The implementation of the above accounting policies had no impact on the Company.
2. Changes in significant accounting estimates
The main accounting estimates had no chang during the reporting period.
IV. Taxes
(I) Main tax type and rates
Tax type Tax basis Tax rate
The output tax is calculated based on revenue
from the sale of goods and taxable services
Value-added calculated according to the tax law. After 13% 、9%、 6%、
tax deducting the input tax allowed to be deducted 5%、3%
in the current period, difference shall be the
value-added tax payable.
Urban
maintenance Based on the actual value-added tax and
7%
and consumption tax paid
construction tax
Education Based on the actual value-added tax and
3%
surcharge consumption tax paid
Local education Based on the actual value-added tax and
2%
surcharge consumption tax paid
Except for the
following
enterprises that
enjoy tax
Corporate
Based on taxable income preferential
income tax
treatment, tax shall
be paid at 25% of
the taxable income.
Notes to the Financial statements Page 26
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Tax type Tax basis Tax rate
For the actual occupied land area of industrial
land in Nanshan District, Shenzhen, tax shall be
Urban land use paid at RMB 2-8/square meter. For the actual
tax occupied land area of industrial land in
Zhongshang, tax shall be paid at RMB 1/square
meter.
Foreign taxes shall be calculated according to
Foreign taxes the tax regulations of each overseas country and
region.
The taxpayers with different corporate income tax are as follows:
Taxpayer name Income tax rate
The Company 15%
Shenzhen Nanshan Power Engineering Company 15%
(II) Main tax preferential treatment
1. Corporate income tax
(1) The Company obtained a national high-tech enterprise certificate numbered GR202144204080,
which is valid for 3 years. From 2021 to 2023, the Company's corporate income tax enjoys a
preferential income tax rate of 15% for high-tech enterprise.
(2) Shenzhen Nanshan Power Engineering Company obtained a national high-tech enterprise
certificate numbered GR202344200269, which is valid for 3 years. From 2023 to 2025, the
Company's corporate income tax enjoys a preferential income tax rate of 15% for high-tech
enterprise.
2. Value-added tax
Compa Relevant laws, Preferen
Tax Approval Approva Validity
ny regulations and ce
type authority l No. period
name policies enjoyed
Shenzh
Instant
en
collectio
Nansha Notice on the Catalog
n/refund
n of Preferential Value Shenzhen
of value-
Power value-added Tax on Qianhai SQSST August 1,
Value- added
Enviro Products and Services State [2018] 2020-
added tax for
nmenta for Comprehensive Taxation No. July 31,
tax compreh
l Utilization of Administr 18302 2023
ensive
Protect Resources (CS [2015] ation
resource
ion No. 78)
utilizatio
Compa
n
ny
Shenzh Measures for the Value-
en Administration of added
Shenzhen
Nansha Value-added Tax tax
Qianhai GJSWZJ
Value- n Exemption for Cross- exempti
State GG
added Power border Taxable on for
Taxation [2016]
tax Engine Activities in cross-
Administr No. 29
ering Replacement of border
ation
Compa Business Tax with taxable
ny Value-added tax activities
Notes to the Financial statements Page 27
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
V. Notes to consolidated financial statements items
(I) Monetary funds
Balance at the end of
Item Ending balance
last year
Cash on hand 30,329.83 37,698.63
Bank deposits 310,694,227.98 647,983,965.23
Other monetary funds 5,464,224.68 27,474,602.54
Deposits with financial company
Total 316,188,782.49 675,496,266.40
Including: total amount deposited
6,105,051.40 6,016,949.57
abroad
The details of monetary funds that have restrictions on their use due to mortgage, pledge or
freezing, as well as those deposited overseas with restrictions on repatriation are as follows:
Balance at the end of
Item Ending balance
last year
L/G deposit 5,453,862.93
Deposit for bank acceptance bills 27,474,594.34
Total 5,453,862.93 27,474,594.34
In addition, as at December 31, 2023, the Company had no monetary funds subject to the
restriction to use due to mortgage, pledge or freezing and with potential recovery risks.
(II) Financial assets held for trading
Balance at the end of
Item Ending balance
last year
Financial assets measured at fair
value with changes included in the 226,000,000.00 440,013,571.10
current profit or loss
Including: investments in debt
instruments
Investments in equity
instruments
Derivative financial
assets
Others (note) 226,000,000.00 440,013,571.10
Financial assets designated as
measured at fair value and whose
changes are recorded in profit or loss
for the period
Including: investments in debt
instruments
Investments in equity
instruments
Total 226,000,000.00 440,013,571.10
Note: the balance at the end of the current year is the structured deposits of the Company's idle
self-owned funds.
Notes to the Financial statements Page 28
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(III) Accounts receivable
1. Disclosure of accounts receivable on an aging basis
Balance at the end of last
Aging Ending balance
year
Within 1 year 51,764,528.59 103,306,168.76
1-2 years 40,359,448.07 34,239,288.30
2-3 years 21,478,238.86
Over 3 years 5,464,799.07 5,558,673.67
Subtotal 119,067,014.59 143,104,130.73
Less: provision for bad debts 7,091,763.49 7,270,638.09
Total 111,975,251.10 135,833,492.64
2. Accounts receivable are classified and disclosed according to the method of provision for
bad debts
Ending balance
Category Book balance Provision for bad debts
Ratio Provision Book value
Amount Amount
(%) ratio (%)
Provision for
bad debts on
5,464,799.07 100.00
an individual 5,464,799.07 4.59
basis
Provision
provision for
bad debts on a 1,626,964.42 1.43 111,975,251.10
113,602,215.52 95.41
credit risk
portfolio basis
Total 119,067,014.59 100.00 7,091,763.49 5.96 111,975,251.10
Balance at the end of last year
Category Book balance Provision for bad debts
Ratio Provision Book value
Amount Amount
(%) ratio (%)
Provision for
bad debts on
5,558,673.67 3.88 5,558,673.67 100.00
an individual
basis
Provision
provision for
bad debts on a 137,545,457.06 96.12 1,711,964.42 1.24 135,833,492.64
credit risk
portfolio basis
Total 143,104,130.73 100.00 7,270,638.09 5.08 135,833,492.64
Notes to the Financial statements Page 29
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
（1）Important provision for bad debts on an individual basis
Balance at the end of last
Ending balance
year
Reasons
Name Provision Provision Provisio
Book Book for
for bad for bad n ratio
balance balance provisio
debts debts (%)
n
Shenzhen
Petrochemi Not
cal Oil expecte
3,474,613. 3,474,613. 3,474,613. 3,474,613.
Products 100.00 d to be
06 06 06 06
Bonded recover
Trading ed
Co., Ltd.
Not
China
expecte
Solibase 1,137,145. 1,137,145. 1,137,145. 1,137,145.
100.00 d to be
Engineering 51 51 51 51
recover
Co., Ltd.
ed
4,611,758. 4,611,758. 4,611,758. 4,611,758.
Total 100.00
57 57 57 57
(2) Provision for bad debts by portfolio
Ending balance
Name of portfolio Accounts Provision for bad
Provision ratio (%)
receivable debts
Portfolio II:
receivables from
26,995,169.61
power production
and sales
Portfolio III:
receivables from
86,607,045.91 1,626,964.42 1.88
integrated energy
service
Total 113,602,215.52 1,626,964.42 1.43
3. Provision for bad debts accrued, reversed or recovered for the current period
Amount of changes for the current period
Balance at
Charge- Ending
Category the end of Reverse or
Accrual off or Others balance
last year recovery
write-off
Provision for bad
debts on an 5,558,673.67 93,874.60 5,464,799.07
individual basis
Provision for bad
debts on a credit
1,711,964.42 85,000.00 1,626,964.42
risk portfolio
basis
Total 7,270,638.09 85,000.00 93,874.60 7,091,763.49
Notes to the Financial statements Page 30
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
4. Accounts receivable from actual write-off for the current period
Item Write-off amount
Accounts receivable from actual written-off 93,874.60
5. Accounts receivable and contract assets of the top five ending balances by debtors
Ending
balance of
Proportion provision
Ending
to the total for bad
Ending balance of
Ending ending debts of
balance accounts
balance of balance of accounts
Entity name of receivable
accounts accounts receivable
contrac and
receivable receivable and
t assets contract
and contract provision
assets
assets (%) for contract
asset
impairment
China Machinery
81,821,045. 81,821,045
Engineering 68.67 1,626,964.4
91 .91
Corporation 2
Shenzhen Power
26,981,407. 26,981,407
Supply Bureau 22.64
91 .91
Co., Ltd.
Power China
4,539,000.0 88,000. 4,627,000.
Hubei Engineering 3.88
0 00 00
Co., Ltd.
Shenzhen
Petrochemical Oil 3,474,613.0
3,474,613.0 3,474,613. 2.92
Products Bonded 6
6 06
Trading Co., Ltd.
China Solibase
1,137,145.5
Engineering Co., 1,137,145.5 1,137,145. 0.96
1
Ltd. 1 51
117,953,212 88,000. 118,041,21 6,238,722.9
Total 99.07
.39 00 2.39 9
(IV) Advances to suppliers
1. Advances to suppliers are listed based on aging
Ending balance Balance at the end of last year
Aging
Book balance Ratio (%) Book balance Ratio (%)
Within 1 year 26,780,454.52 99.67 44,506,222.90 97.93
1 to 2 years 72,700.00 0.27 514,851.14 1.13
2 to 3 years 389,626.88 0.86
Over 3 years 16,021.07 0.06 37,586.94 0.08
Total 26,869,175.59 100.00 45,448,287.86 100.00
Notes to the Financial statements Page 31
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
2. Prepayments of the top five ending balances by prepayment objects
Proportion to the
Entity name Book balance
prepayment balance (%)
CNOOC Gas & Power Group Co.,
15,992,752.12 59.52
Ltd.
Shenzhen Gas Group Co., Ltd. 9,618,506.86 35.80
Shenzhen Rici Clinic 172,600.00 0.64
Shenzhen Weinuosi Technology
157,800.00 0.59
Development Co., Ltd.
Shenzhen Branch of Ping An
131,400.00 0.49
Pension Insurance Co., Ltd.
Total 26,073,058.98 97.04
(V) Other receivables
Balance at the end of
Item Ending balance
last year
Interest receivable
Dividends receivable
Other receivables 19,233,117.52 18,314,003.84
Total 19,233,117.52 18,314,003.84
1. Other receivables
(1) Disclosure based on aging
Balance at the end of
Aging Ending balance
last year
Within 1 year 1,617,984.30 1,058,183.07
1 to 2 years 3,356.31 36,436.71
2 to 3 years 243,391.13
Over 3 years 48,002,435.80 49,016,380.54
Subtotal 49,623,776.41 50,354,391.45
Less: provision for bad debts 30,390,658.89 32,040,387.61
Total 19,233,117.52 18,314,003.84
(2) Disclosure by category
Ending balance
Category Book balance Provision for bad debts
Ratio Provision Book value
Amount Amount
(%) ratio (%)
Provision for
30,390,658.89 61.24 30,390,658.89 100.00
bad debts on an
Notes to the Financial statements Page 32
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Ending balance
Category Book balance Provision for bad debts
Ratio Provision Book value
Amount Amount
(%) ratio (%)
individual basis
Provision
provision for
bad debts on a 19,233,117.52 38.76 19,233,117.52
credit risk
portfolio basis
Total 49,623,776.41 100.00 30,390,658.89 61.24 19,233,117.52
Balance at the end of last year
Category Book balance Provision for bad debts
Ratio Provision Book value
Amount Amount
(%) ratio (%)
Provision for
bad debts on an 32,328,502.39 64.20 32,040,387.61 99.11 288,114.78
individual basis
Provision
provision for
bad debts on a 18,025,889.06 35.80 18,025,889.06
credit risk
portfolio basis
Total 50,354,391.45 100.00 32,040,387.61 63.63 18,314,003.84
① Provision for bad debts on individual provision basis
Balance at the end of last
Ending balance
year
Reasons
Name Provisio
Book Provision for Book Provision for for
n ratio
balance bad debts balance bad debts provisio
(%)
n
Not
Huiyang
expected
Kangtai 14,311,626.7 14,311,626.7 14,311,626.7 14,311,626.7
100.00 to be
Industrial 0 0 0 0
recovere
Company
d
Receivable
s from Not
employee expected
benefit 9,969,037.63 9,969,037.63 9,969,037.63 9,969,037.63 100.00 to be
fund recovere
dividends d
and taxes
Shandong Not
Jinan expected
3,560,000.00 3,560,000.00 3,560,000.00 3,560,000.00 100.00
Power to be
Equipment recovere
Notes to the Financial statements Page 33
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Balance at the end of last
Ending balance
year
Reasons
Name Provisio
Book Provision for Book Provision for for
n ratio
balance bad debts balance bad debts provisio
(%)
n
Factory d
Receivable
s from Not
purchase expected
of 1,736,004.16 1,736,004.16 1,736,004.16 1,736,004.16 100.00 to be
employee recovere
dormitorie d
s
Not
expected
Others 2,751,833.90 2,463,719.12 813,990.40 813,990.40 100.00 to be
recovere
d
32,328,502.3 32,040,387.6 30,390,658.8 30,390,658.8
Total 100.00
9 1 9 9
① Provision provision for bad debts on a portfolio basis
Ending balance
Name Provision for bad
Other receivables Provision ratio (%)
debts
Portfolio V: guarantee,
deposit and petty cash 2,650,577.32
portfolio
Portfolio VII: other
receivables and 16,582,540.20
temporary payments
Total 19,233,117.52
(3) Disclosure by nature of payment
Book balance at the end of
Nature of payment Ending book balance
last year
Guarantee and deposit 2,869,769.32 2,821,122.05
Receivable from employees 12,415,545.61 11,025,579.22
Current accounts with external
34,338,461.48 36,507,690.18
units
Subtotal 49,623,776.41 50,354,391.45
Less: provision for bad debts 30,390,658.89 32,040,387.61
Total 19,233,117.52 18,314,003.84
Notes to the Financial statements Page 34
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(4) Provision provision for bad debts
The first stage The second stage The third phase
Expected credit Expected credit
loss over the life loss over the life
Provision for Expected
of the of the Total
bad debts credit losses
instruments (no instruments
over the next
credit (credit
12 months
impairment has impairment has
occurred) occurred)
Beginning
32,040,387.61 32,040,387.61
balance
Beginning
balance in the
current period
--Transfer to
the second
stage
--Transfer to
the third stage
--Reverse to
the second
stage
--Reverse to
the first stage
Provision for
the current 129,806.28 129,806.28
period
Reverse for
the current 1,235,154.68 1,235,154.68
period
Charge-off for
the current 544,380.32 544,380.32
period
Write-off for
the current
period
Other changes
Ending
30,390,658.89 30,390,658.89
balance
(5) Provision for bad debts made, reversed or recovered for the current period
Amount of changes for the current period
Balance at
Charge- Other Ending
Category the end of Reverse or
Accrual off or s balance
last year recovery
write-off
Individu
32,040,387.6 129,806.2 1,235,154.6 544,380.3 30,390,658.8
al
1 8 8 2 9
provision
32,040,387.6 129,806.2 1,235,154.6 544,380.3 30,390,658.8
Total
1 8 8 2 9
Notes to the Financial statements Page 35
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
The amount of provision for bad debts reversed or recovered for the current period, which is
important
The basis for
determining
Reversed or Reason for
Method of the original
Entity name recovered the reverse or
recovery provision for
amount recovery
bad debts and
its rationality
Shenzhen OCT Co., Recovered
It is likely to
Ltd. Asset Management 1,172,781.26 on surrender Long aging
be recovered
Branch of lease
Total 1,172,781.26
(6) Other receivables of the top five ending balances by debtors
Proportion to
the total
Ending
Nature ending
balance of
Entity name of Book balance Aging balance of
provision for
payment other
bad debts
receivables
(%)
Huidong Xiefu
Within 1
Port
Current year and
Comprehensive 15,532,630.74 31.30
accounts 1-3
Development
years
Co., Ltd.
Huiyang
Kangtai Current Over 3
28.84 14,311,626.70
Industrial accounts 14,311,626.70 years
Company
Shandong Jinan
Power
Current Over 3
Equipment 7.17 3,560,000.00
accounts 3,560,000.00 years
Factory Co.,
Ltd.
Shenzhen OCT
Co., Ltd. Asset Over 3
Deposit 2.94
Management 1,460,919.00 years
Branch
Current Over 3
Lai Weicheng 2.85 1,408,866.89
accounts 1,408,866.89 years
Total 36,274,043.33 73.10 19,280,493.59
Notes to the Financial statements Page 36
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(VI) Inventories
1. Inventories classification
Ending balance Balance at the end of last year
Provision Provision
for for
inventory inventory
depreciati depreciati
on or on or
Item Book provision Book Book provision Book
balance for value balance for value
impairmen impairmen
t of t of
contract contract
performan performan
ce costs ce costs
Fuel and
144,943,4 59,223,96 85,719,51 144,000,4 59,079,22 84,921,21
spare
85.98 7.83 8.15 40.38 2.05 8.33
parts
Auxiliar
y
materials
344,882.1 344,882.1 358,080.0 358,080.0
and low-
1 1 2 2
value
consuma
bles, etc.
Others 93,850.90 93,850.90
145,382,2 59,223,96 86,158,25 144,358,5 59,079,22 85,279,29
Total
18.99 7.83 1.16 20.40 2.05 8.35
2. Provision for inventory depreciation and provision for impairment of contract
performance costs
Increased amount in Decreased amount in
Balance at the
the current period the current period Ending
Item end of last
Reverse or balance
year Accrual Others Others
charge-off
Fuel
and
59,079,222.05 191,133.50 46,387.72 59,223,967.83
spare
parts
Total 59,079,222.05 191,133.50 46,387.72 59,223,967.83
(VII) Contract assets
1. Contract assets
Ending balance Balance at the end of last year
Item Provisio Provisio
Book Book Book Book
n for bad n for bad
balance value balance value
debts debts
Project
217,009.5 217,009.5
quality 88,000.00 88,000.00
8 8
guarantee
217,009.5 217,009.5
Total 88,000.00 88,000.00
8 8
Notes to the Financial statements Page 37
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
2. Disclosure by the method of provision for bad debts
Ending balance
Category Book balance Provision for bad debts
Ratio Provision Book value
Amount Amount
(%) ratio (%)
Provision for bad
debts on an
individual basis
Provision
provision for bad
debts on a credit 88,000.00 100.00 88,000.00
risk portfolio
basis
Total 88,000.00 100.00 88,000.00
Balance at the end of last year
Category Book balance Provision for bad debts
Ratio Provision Book value
Amount Amount
(%) ratio (%)
Provision for bad
debts on an
individual basis
Provision
provision for bad
debts on a credit 217,009.58 100.00 217,009.58
risk portfolio
basis
Total 217,009.58 100.00 217,009.58
(VIII) Other current assets
Balance at the end of
Item Ending balance
last year
Large-amount negotiable certificate of
225,278,591.79 180,496,849.31
deposit and accrued interest
Prepaid income tax 6,583,089.98 6,583,089.98
Amount of input value-added tax to be
996,267.20 1,103,481.37
deducted
Others 8,019.66 65,419.78
Total 232,865,968.63 188,248,840.44
Notes to the Financial statements Page 38
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(IX) Long-term equity investments
Increase and decrease in the current period
Ending Investme Ending
Balance at balance balance
the end of nt profit
of Adjustment Declarati of
last year Addition or loss Other Provision Ending
Investees provision Reduced s to the on of provision
al recogniz chang for Othe balance
for investme other cash for
investme ed under es in impairme rs
impairme nt comprehens dividend impairme
nt the equity nt
nt ive income or profits nt
equity
method
1.
Associates
Huidong
Xiefu Port
Comprehens
ive
Developmen 4,414,021.8 753,311. 5,167,333.
t Co., Ltd. 0 50 30
(hereinafter
referred to
as "Huidong
Xiefu")
Jiangsu
Liaoyuan
Environmen
tal
Protection
79,082,076. 6,966,316. 1,214,550. 84,833,842.
Technology 30 00 74
44
Co., Ltd.
(hereinafter
referred to
as
"Liaoyuan
Notes to the Financial statements Page 39
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Increase and decrease in the current period
Ending Investme Ending
Balance at balance balance
the end of nt profit
of Adjustment Declarati of
last year Addition or loss Other Provision Ending
Investees provision Reduced s to the on of provision
al recogniz chang for Othe balance
for investme other cash for
investme ed under es in impairme rs
impairme nt comprehens dividend impairme
nt the equity nt
nt ive income or profits nt
equity
method
Environmen
tal
Protection")
83,496,098. 7,719,627. 1,214,550. 90,001,176.
Total 80 00 04
24
Notes to the Financial statements Page 40
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(X) Other investments in equity instruments
1. Other investments in equity instruments
Ending balance in the current year Balance at the end of last year
Item Original Fair value Ending Original Fair value Ending
book value changes balance book value changes balance
Sunpower
Technology 140,000,000 140,000,0 140,000,000 140,000,
(Jiangsu) Co., .00 00.00 .00 000.00
Ltd.
Shenzhen
Yuanzhi Ruixin
New Generation
Information
Technology 100,000,000 100,000,0 100,000,000 100,000,
Private Equity .00 00.00 .00 000.00
Investments
Fund Partnership
(Limited
Partnership)
Jiangxi Nuclear 60,615,000. 60,615,00 60,615,000. 60,615,0
Power Co., Ltd. 00 0.00 00 00.00
Shenzhen
Petrochemical
2,500,000.0 2,500,000.0
Oil Products -2,500,000.00 -2,500,000.00
0 0
Bonded Trading
Co., Ltd.
303,115,000 300,615,0 303,115,000 300,615,
Total -2,500,000.00 -2,500,000.00
.00 00.00 .00 000.00
2. Investment in non-trading equity instruments
The
amount Reasons for
Reasons for
Dividend of other measuring at
transferring
income Accu compre fair value and
other
recognize mula Accumulated hensive whose changes
Item comprehensiv
d in the ted losses income are recognized
e income to
current gains transferr in other
retained
period ed to comprehensive
earnings
retained income
earnings
Sunpower Technology 8,400,000. Plan to hold for
(Jiangsu) Co., Ltd. 00 the long term
Shenzhen Yuanzhi
Ruixin New Generation
Information
340,206.1 Plan to hold for
Technology Private
3 the long term
Equity Investments
Fund Partnership
(Limited Partnership)
Jiangxi Nuclear Power Plan to hold for
Co., Ltd. the long term
Shenzhen
Plan to hold for
Petrochemical Oil 2,500,000.00
the long term
Products Bonded
Notes to the Financial statements Page 41
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
The
amount Reasons for
Reasons for
Dividend of other measuring at
transferring
income Accu compre fair value and
other
recognize mula Accumulated hensive whose changes
Item comprehensiv
d in the ted losses income are recognized
e income to
current gains transferr in other
retained
period ed to comprehensive
earnings
retained income
earnings
Trading Co., Ltd.
8,740,206.
Total 2,500,000.00
13
(XI) Investment properties
1. Investment properties measured using cost model
Houses and
Item Total
buildings
1. Original book value
(1) Balance at the end of last year 9,708,014.96 9,708,014.96
(2) Increased amount in the current
period
(3) Reduced amount 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 7,874,670.76 7,874,670.76
(2) Increased amount in the current
168,777.60 168,777.60
period
(3) Reduced amount in the current
period
(4) Ending balance 8,043,448.36 8,043,448.36
3. Provision for impairment
(1) Balance at the end of last year
(2) Increased amount in the current
period
(3) Reduced amount in the current
period
(4) Ending balance
4. Book value
(1) Ending book value 1,664,566.60 1,664,566.60
(2) Book value at the end of last year 1,833,344.20 1,833,344.20
Notes to the Financial statements Page 42
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(XII) Fixed assets
1. Fixed assets and disposal of fixed assets
Balance at the end of
Item Ending balance
last year
Fixed assets 385,390,614.45 591,290,204.31
Disposal of fixed assets(note） 186,092,119.90
Total 571,482,734.35 591,290,204.31
Note: On November 6, 2023, Shenzhen Nanshan Power Zhongshan Company received the Letter
on Matters Related to the Shutdown of Units of Shenzhen Nanshan Power (Zhongshan) Power Co.,
Ltd. Nanlang Power Plant (YNDLH [2023] No. 672) from Energy Bureau of Guangdong Province,
according to which, the Energy Bureau of Guangdong Province agreed on the shutdown of two
180MW gas-fired cogeneration units of Zhongshan Nanlang Power Plant. The relevant unit
equipment and other assets are planned to be externally disposed of and have been listed on
Shenzhen United Property and Equity Exchange in 2024; In addition, according to the latest
industrial planning of Zhongshan Cuiheng New District, Cuiheng New District Management
Committee paid for the acquisition and storage of the use rights of three parcels of state-owned
land of Shenzhen Nanshan Power Zhongshan Company located in Hengmen Industrial Zone,
Nanlang Street, Cuiheng New District, Zhongshan City (hereinafter referred to as "the Proposed
Acquisition and Storage Land"). On December 12, 2023, Shenzhen Nanshan Power Zhongshan
Company and Cuiheng New District Management Committee formally signed the State-owned
Land Use Right Recovery Agreement and Relocation Compensation Agreement. Assets related to
this matter, such as buildings, unit equipment and cogeneration projects under construction in
progress were transferred to the fixed assets to be disposed.
Notes to the Financial statements Page 43
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
2. Fixed assets
Electronic equipment
Item Houses and buildings Machinery equipment Means of transport Total
and other equipment
1. Original book value
(1) Balance at the end of last
424,154,183.71 2,725,092,344.93 8,138,535.02 44,622,476.80 3,202,007,540.46
year
(2) Increased amount in the
9,310,486.55 619,173.18 9,929,659.73
current period
-Purchase 478,923.62 478,923.62
-Transfer construction in
8,575,561.48 140,249.56 8,715,811.04
progress
-Others 734,925.07 734,925.07
(3) Reduced amount in the
129,266,768.52 1,091,448,053.55 1,832,964.37 777,795.06 1,223,325,581.50
current period
-Disposal or scrapping 129,266,768.52 1,091,448,053.55 1,698,464.37 131,474.77 1,222,544,761.21
---Others 134,500.00 646,320.29 780,820.29
(4) Ending balance 294,887,415.19 1,642,954,777.93 6,305,570.65 44,463,854.92 1,988,611,618.69
2. Accumulated depreciation
(1) Balance at the end of last
294,778,055.90 1,912,442,654.22 5,011,870.15 33,757,207.10 2,245,989,787.37
year
(2) Increased amount in the
9,243,346.13 17,124,749.92 1,130,492.64 2,542,508.49 30,041,097.18
current period
-Provision 9,243,346.13 16,463,317.36 1,130,492.64 2,491,389.64 29,328,545.77
-Others 661,432.56 51,118.85 712,551.41
(3) Reduced amount in the
99,818,329.32 689,937,238.61 1,426,368.64 683,071.08 791,865,007.65
current period
-Disposal or scrapping 99,818,329.32 689,937,238.61 1,305,318.64 91,569.67 791,152,456.24
Notes to the Financial statements Page 44
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Electronic equipment
Item Houses and buildings Machinery equipment Means of transport Total
and other equipment
-Others 121,050.00 591,501.41 712,551.41
(4) Ending balance 204,203,072.71 1,239,630,165.53 4,715,994.15 35,616,644.51 1,484,165,876.90
3. Provision for impairment
(1) Balance at the end of last
22,573,968.96 341,888,879.56 53,176.48 211,523.78 364,727,548.78
year
(2) Increased amount in the
33,800.00 33,800.00
current period
-Others 33,800.00 33,800.00
(3) Reduced amount in the
4,721,921.12 240,950,500.32 33,800.00 245,706,221.44
current period
-Disposal or scrapping 4,721,921.12 240,950,500.32 245,672,421.44
---Others 33,800.00 33,800.00
(4) Ending balance 17,852,047.84 100,972,179.24 177,723.78 119,055,127.34
53,176.48
4. Book value
(1) Ending book value 72,832,294.64 302,352,433.16 1,536,400.02 8,669,486.63 385,390,614.45
(2) Book value at the end of
106,802,158.85 470,760,811.15 3,073,488.39 10,653,745.92 591,290,204.31
last year
Notes to the Financial statements Page 45
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
3. Fixed assets without the certificate of title
Reasons for failure to acquire
Item Book value
the certificate of title
Circulating water pump
719,232.91 Formalities not completed
workshop
Cooling tower 673,259.25 Formalities not completed
Complex building 443,246.19 Formalities not completed
Cafeteria of complex
208,735.47 Formalities not completed
building
Chemical water treatment
232,960.00 Formalities not completed
workshop
Mail room at the main
47,264.13 Formalities not completed
entrance
Total 2,324,697.95
4. Disposal of fixed assets
Item Ending balance Balance at the end of last year
Houses and buildings 24,723,346.08
Machinery equipment 160,560,314.62
Means of transport 16,103.45
Construction in progress -
792,355.75
cogeneration projects
Total 186,092,119.90
For details, please see Note V (XII) 1. Fixed assets and disposal of fixed assets of the notes to the
financial statements.
(XIII) Construction in progress
1. Construction in progress
Balance at the end of last
Item Ending balance
year
Construction in progress 3,448,855.10 4,861,062.16
Total 3,448,855.10 4,861,062.16
Notes to the Financial statements Page 46
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
2. Construction in progress
Ending balance Balance at the end of last year
Provision
Item Provision
Book Book Book for
for Book value
balance value balance impairme
impairment
nt
Combined
heat and
60,307,712 59,515,3
power 792,355.75
project(note .44 56.69
）
Oil to gas 9,441,286. 9,441,286. 9,441,28
9,441,286.39
project 39 39 6.39
Technical
1,605,000. 2,475,87 5,673,706. 1,605,00 4,068,706.
transformati 4,080,877.62
00 7.62 41 0.00 41
on project
972,977.
Others 972,977.48
48
14,495,141.4 11,046,286 3,448,85 75,422,705 70,561,6 4,861,062.
Total
9 .39 5.10 .24 43.08 16
Note: for the cogeneration projects to be transferred to the fixed assets to be disposed due to planned
land acquisition and storage, please see Note V (XII) 1. Fixed assets and disposal of fixed assets of the
notes to the financial statements for details.
Notes to the Financial statements Page 47
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
3. Changes in the current period of important construction in progress
Includ
Proport ing: Intere
ion of amoun st
Amount cumula t of capita
Other Accumulate
Increased transferred tive Projec interes lizatio
Balance at decreases in d amount of Sourc
Project Budget amount in to fixed Ending project t t n rate
the end of the current interest es of
name amount the current assets in the balance invest progre capital in the
last year period capitalizatio funds
period current ment ss (%) ization curren
(note) n
period to in the t
budget curren period
(%) t (%)
period
Self-
Combined financ
heat and 60,000,000. 60,307,712. 60,307,712. 100.0 6,476,185.4 ing
100.51
power 00 44 44 0 6 and
project borro
wing
Self-
Oil to gas 9,441,286.3 9,441,286.3
financ
project 9 9
ed
60,000,000. 69,748,998. 60,307,712. 9,441,286.3 6,476,185.4
Total
00 83 44 9 6
Note: For details, please see Note V (XII) 1. Fixed assets and disposal of fixed assets to the notes to the financial statements
Notes to the Financial statements Page 48
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(XIV) Right-of-use assets
1. Right-of-use assets
Item Houses and buildings Total
I. Original book value
1. Beginning balance 16,322,014.37 16,322,014.37
2. Increased amount in the
current period
3. Decreased amount in the
current period
4. Ending balance 16,322,014.37 16,322,014.37
II. Accumulated depreciation
1. Beginning balance 8,614,396.47 8,614,396.47
2. Increased amount in the
5,440,671.48 5,440,671.48
current period
(1) Provision 5,440,671.48 5,440,671.48
3. Decreased amount in the
current period
4. Ending balance 14,055,067.95 14,055,067.95
III. Provision for impairment
IV. Book value
1. Ending book value 2,266,946.42 2,266,946.42
2. Beginning book value 7,707,617.90 7,707,617.90
Note: right-of-use assets for the current period refer to the 16th and 17th floors of the Hantang
Building Property for office under the Company's operating leases.
(XV) Intangible assets
1. Intangible assets
Land use
Item Patent Software Total
right
1. Original book value
(1) Balance at the end of
60,813,994.76 138,625.07 3,782,983.49 64,735,603.32
last year
(2) Increased amount in
75,575.23 75,575.23
the current period
-Purchase 75,575.23 75,575.23
(3) Reduced amount in the
current period
-Others
(4) Ending balance 60,813,994.76 138,625.07 3,858,558.72 64,811,178.55
2. Accumulated
amortization
(1) Balance at the end of
41,265,885.15 31,817.30 3,638,545.75 44,936,248.20
last year
(2) Increased amount in
519,956.44 17,347.80 51,997.08 589,301.32
the current period
-Provision 519,956.44 17,347.80 51,997.08 589,301.32
(3) Reduced amount in the
current period
Notes to the Financial statements Page 49
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Land use
Item Patent Software Total
right
—Disposal
(4) Ending balance 41,785,841.59 49,165.10 3,690,542.83 45,525,549.52
3. Provision for
impairment
(1) Balance at the end of
last year
(2) Increased amount in
the current period
-Provision
(3) Reduced amount in the
current period
—Disposal
(4) Ending balance
4. Book value
(1) Ending book value 19,028,153.17 89,459.97 168,015.89 19,285,629.03
(2) Book value at the end
19,548,109.61 106,807.77 144,437.74 19,799,355.12
of last year
2. Land use right without the certificate of title
Reasons for failure to
Item Book value acquire the certificate
of title
Land use rights for docks and Formalities not
372,219.18
pipeline corridors completed
Total 372,219.18
(XVI) Long-term deferred expenses
Increased Amortization
Balance at
amount in amount in Other Ending
Item the end of
the current the current reductions balance
last year
period period
Renovation
1,219,129.18 497,331.12 721,798.06
costs
Major
repair 3,588,718.72 418,683.85 3,170,034.87
expenses
Total 1,219,129.18 3,588,718.72 916,014.97 3,891,832.93
(XVII) Deferred tax assets and deferred tax liabilities
1. Deferred tax assets not offset
Ending balance Balance at the end of last year
Item Deductible Deductible
Deferred tax Deferred tax
temporary temporary
assets assets
differences differences
Notes to the Financial statements Page 50
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Ending balance Balance at the end of last year
Item Deductible Deductible
Deferred tax Deferred tax
temporary temporary
assets assets
differences differences
Provision for bad
3,649,109.93 547,366.49 3,649,109.93 547,366.49
debts
Fair value changes
of other
2,500,000.00 625,000.00 2,500,000.00 625,000.00
investments in
equity instruments
Total 6,149,109.93 1,172,366.49 6,149,109.93 1,172,366.49
2. Details of unrecognized deferred tax assets
Balance at the end of
Item Ending balance
last year
Deductible temporary differences 547,773,352.17 545,598,991.76
Deductible losses 542,749,124.79 560,445,722.73
Total 1,090,522,476.96 1,106,044,714.49
3. The deductible losses for which deferred tax assets have not been recognized will expire in
the following years
Balance at the end of
Year Ending balance
last year
2023 37,872,366.36
2024 5,350,767.06 5,350,767.06
2025 3,443,492.77 3,443,492.77
2026 174,438,579.72 156,697,644.85
2027 187,111,062.55 180,144,071.23
2028 62,579,931.14
2029 6,019,123.66
2030 26,803,142.56 66,557,231.23
2031 15,911,576.84 34,136,713.56
2032 50,074,067.52 70,224,312.01
2033 17,036,504.63
Total 542,749,124.79 560,445,722.73
(XVIII) Other non-current assets
Balance at the end of
Item Ending balance
last year
Land acquisition, storage,
production and business 36,157,735.24
suspension, employee
Notes to the Financial statements Page 51
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Balance at the end of
Item Ending balance
last year
compensation and relocation
expenses, etc. (Note)
Project quality guarantee 5,371,398.18
Total 36,157,735.24 5,371,398.18
Note: according to the latest industrial plan of Zhongshan Cuiheng New District, Cuiheng New
District Management Committee has acquired three state-owned land use rights of Shenzhen
Nanshan Power Zhongshan Company located in Hengmen Industrial Zone, Nanlang Street,
Cuiheng New District, Zhongshan (hereinafter referred to as "the Proposed Acquisition and
Storage Land") with compensation. On December 15, 2023, Shenzhen Nanshan Power Zhongshan
Company and Cuiheng New District Management Committee formally signed the State-owned
Land Use Right Recovery Agreement and Relocation Compensation Agreement. On December 18,
2023, Shenzhen Nanshan Power Zhongshan Company received the first installment of RMB
104,000,000 in the first phase of compensation, which was recorded in other non-current liabilities.
The expenses incurred by the Company in fulfilling the land acquisition and storage, such as the
loss of demolition of houses and other appurtenances, relocation expenses, employee
compensation paid during the suspension of production and business operations were recognized
in other non-current assets.
(XIX) Assets with restricted ownership or use rights
Ending balance Balance at the end of last year
Item Restr Restr Restr
Book Book Book Book Restri
icted iction icted
balance value balance value ctions
type s type
Monetar 5,453,862. 5,453,862. Guar Freez 27,474,59 27,474,59 Guar Freez
y funds 93 93 antee e 4.34 4.34 antee e
5,453,862. 5,453,862. 27,474,59 27,474,59
Total
93 93 4.34 4.34
(XX) Short-term borrowings
Short-term borrowings classification
Balance at the end of
Item Ending balance
last year
Credit loan 270,933,506.37 878,150,962.14
Pledge loan 70,000,000.00
Short term loan interest payable 304,380.35 1,806,895.30
Total 341,237,886.72 879,957,857.44
Note: the Company used its own patent rights pledge a loan of RMB 70 million from Shanghai
Pudong Development Bank Shenzhen Branch.
(XXI) Notes payable
Balance at the end of
Type Ending balance
last year
Bank acceptance bill 137,298,902.17
Notes to the Financial statements Page 52
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Balance at the end of
Type Ending balance
last year
Total 137,298,902.17
(XXII) Accounts payable
1. Accounts payable
Balance at the end of
Item Ending balance
last year
Labor and service payments 3,435,338.05 3,997,800.00
Electricity bill 896,652.87 937,613.72
Payment for materials 10,175.58 292,422.50
Total 4,342,166.50 5,227,836.22
At the end of the reporting period, the Company had no important accounts payable aged over one
year.
2. Top five accounts payable
Proportion to the
Entity name Book balance accounts payable
balance (%)
Shenyang LES Power Service Co.,
1,558,834.05 35.90
Ltd.
Nanjing Pengpai Power
1,265,040.00 29.13
Engineering Technology Co., Ltd.
Shenzhen Power Supply Bureau
896,652.87 20.65
Co., Ltd.
Nanjing Fire Fighting Equipment
316,550.00 7.29
Co., Ltd.
Shenzhen Power Transmission and
Transformation Engineering Co., 128,250.00 2.96
Ltd.
Total 4,165,326.92 95.93
(XXIII) Employee compensation payable
1. Employee compensation payable
Balance at the Increased Decreased
Ending
Item end of last amount in the amount in the
balance
year current period current period
Short-term
29,296,815.07 78,753,525.70 94,050,214.20 14,000,126.57
compensation
Post-employment
benefits- defined
17,126,112.08 17,126,112.08
contribution
plans
Dismissal
32,238,856.00 32,238,856.00
benefits (note)
Other benefits
due within one
year
Notes to the Financial statements Page 53
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Balance at the Increased Decreased
Ending
Item end of last amount in the amount in the
balance
year current period current period
Total 29,296,815.07 128,118,493.78 111,176,326.28 46,238,982.57
Note: for the employee compensation matters relating to land acquisition and storage of Shenzhen
Nanshan Power Zhongshan Company, please refer to the Note V (XVIII).
2. Short-term compensation
Increased Decreased
Balance at the Ending
Item amount in the amount in the
end of last year balance
current period current period
(1) Salaries,
bonuses,
28,806,319.36 13,904,838.47
allowances and 51,335,303.97 66,236,784.86
subsidies
(2) Employee
107,277.20
welfare fees 9,551,427.64 9,658,704.84
(3) Social
insurance
5,862,608.52 5,862,608.52
premiums
Including:
medical insurance
5,180,471.81 5,180,471.81
premiums
Work injury
insurance
324,480.70 324,480.70
premium
Maternity
insurance
357,656.01 357,656.01
premium
(4) Housing
provident fund 10,248,597.80 10,248,597.80
(5) Trade union
funds and
employee 383,218.51
1,755,587.77 2,043,518.18 95,288.10
education
expenses
(6) Short-term
paid absence from
work
(7) Short-term
profit sharing
plan
(8) Others
Total 29,296,815.07
78,753,525.70 94,050,214.20 14,000,126.57
3. Defined contribution plans list
Balance at Increased Decreased
Ending
Item the end of amount in the amount in the
balance
last year current period current period
Basic endowment
11,538,360.11
insurance 11,538,360.11
Unemployment
insurance premiums 140,457.97 140,457.97
Notes to the Financial statements Page 54
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Balance at Increased Decreased
Ending
Item the end of amount in the amount in the
balance
last year current period current period
Enterprise annuity
payment 5,447,294.00 5,447,294.00
Total
17,126,112.08 17,126,112.08
(XXIV) Taxes payable
Balance at the end of
Tax items Ending balance
last year
Value-added tax 2,282,514.44 2,068,236.33
Personal income tax 620,879.50 1,825,992.00
Stamp duty 160,105.10 170,883.69
Urban maintenance and
15,063.61 2,464.98
construction tax
Education surcharge 6,404.48 630.08
Local education surcharge 4,346.16 420.06
Property tax 996,166.86
Other taxes 17.18 42,872.73
Total 3,089,330.47 5,107,666.73
(XXV) Other payables
Balance at the end of last
Item Ending balance
year
Interest payable
Dividends payable
Other payables 13,973,447.42 22,997,466.80
Total 13,973,447.42 22,997,466.80
1. Other payables
(1) Presented according to nature of payment
Balance at the end of
Item Ending balance
last year
Guarantee 8,993,154.68 6,973,652.54
Labor and service fees 1,522,715.43 7,525,391.28
Others 3,457,577.31 8,498,422.98
Total 13,973,447.42 22,997,466.80
(2) Top five other payables
Proportion to the
Entity name Book balance other accounts
payable balance (%)
Notes to the Financial statements Page 55
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Proportion to the
Entity name Book balance other accounts
payable balance (%)
Shenzhen Nangang Power Engineering
4,760,000.00 34.06
Co., Ltd.
Zike Co., Ltd. 1,872,500.00 13.40
Shanghai Power Equipment Research
1,773,515.02 12.69
Institute Co., Ltd.
Zhongshan Nanlang Construction and
860,190.12 6.16
Development Company
Shenzhen Trony New Energy
458,593.39 3.28
Technology Co., Ltd.
Total 9,724,798.53 69.59
(XXVI) Non-current liabilities maturing within one year
Balance at the end of
Item Ending balance
last year
Long-term borrowings due within
1,399,170.93
one year
Lease liabilities due within one
2,556,609.50 6,279,115.44
year
Less: unrecognized financing
29,453.98 264,995.49
expenses
Total 3,926,326.45 6,014,119.95
(XXVII) Other current liabilities
Balance at the end of
Item Ending balance
last year
Value-added tax pending charge-
21,600.00
off
Total 21,600.00
(XXVIII) Long-term borrowings
Balance at the end of
Item Ending balance
last year
Credit loan 58,829,426.30 28,019,758.68
Total 58,829,426.30 28,019,758.68
(XXIX) Lease liabilities
1. Lease liabilities details
Balance at the end of
Item Ending balance
last year
Lease liabilities 2,291,614.01
Less: unrecognized financing 29,453.98
Notes to the Financial statements Page 56
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Balance at the end of
Item Ending balance
last year
expenses
Total 2,262,160.03
2. Lease liabilities maturity analysis
Balance at the end of
Item Ending balance
last year
1-2 years 2,262,160.03
Total 2,262,160.03
(XXX) Estimated liabilities
Increased
Balance at the Decreased
amount in Ending
Item end of last amount in the Causes
the current balance
year current period
period
Others 15,000,000.00 15,000,000.00
Total 15,000,000.00 15,000,000.00
Note: on November 29, 2013, Shenzhen Xiefu and Jiahua Construction Products (Shenzhen) Co.,
Ltd. ("Jiahua Construction") signed a supplementary agreement to the equity transfer agreement in
respect of the historical issues in relation to the vesting and division of interests in Yapojiao Wharf
between Shenzhen Xiefu, Huidong Xiefu and the Huidong Renshan Town Government and its
subordinate Renshan Group. In order to solve the historical issues, Shenzhen Xiefu deposited
RMB 12,500,000.00 into the escrow account as guarantee. In addition, Shenzhen Xiefu pledged its
20% equity interest in Huidong Xiefu to Jiahua Construction for a period of two years and the
amount of the pledge secured claim was not more than RMB 15,000,000.00. The Company
expected a loss of RMB 27,500,000.00 in relation to this matter. The balance at the end of 2019
was RMB 26,646,056.28.
On November 12, 2020, Huidong Xiefu and other relevant parties reached a preliminary
settlement agreement on the land dispute matter in estimated liabilities. Shenzhen Xiefu
accordingly reversed the estimated liabilities by RMB 6,584,816.78. In 2020, Shenzhen Xiefu
borne the lawyer and other expenses of RMB 137,731.22 for this matter according to the agreed
ratio, and the estimated liabilities decreased by a total of RMB 6,722,548.00 in 2020. The balance
of RMB 19,923,508.28 is the repayment obligation that is likely to occur before the above matters
are completed.
On November 12, 2020, Huizhou Commercial Construction and Development Corporation and
Huidong Xiefu Port Comprehensive Development Co., Ltd. signed the Debt Transfer Agreement
and the execution and settlement record of the Huidong County People's Court. The historical
issues left over from the ownership and division of the rights and interests of Yapojiao Wharf were
partially resolved. On January 20, 2021, Shenzhen Xiefu received a refund of RMB 5,000,000.00
from the co-managed account. Shenzhen Xiefu accordingly reversed the estimated liabilities by
RMB 4,573,508.28. In 2021, Shenzhen Xiefu borne the lawyer and other expenses of RMB
350,000 for this matter according to the agreed ratio, and the estimated liabilities decreased by a
total of RMB 4,923,508.28 in 2021. The balance of RMB 15,000,000.00 is the repayment
obligation that is likely to occur before the above matters are completed.
Notes to the Financial statements Page 57
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(XXXI) Deferred income
Increased
Balance at the Decreased
amount in Ending Cause
Item end of last amount in the
the current balance s
year current period
period
Government
82,145,596.6 3,690,000.0 17,966,248.5 67,869,348.0
subsidies(Note
0 0 3 7
)
82,145,596.6 3,690,000.0 17,966,248.5 67,869,348.0
Total
0 0 3 7
Note: for the government subsidies recognized in the current profit or loss, please refer to Note
VIII (I) of the notes to the financial statements.
(XXXII) Other non-current liabilities
Balance at the end of
Item Ending balance
last year
Progress payment for land
104,000,000.00
acquisition and storage(Note)
Interests of other partners in the
45,112.54 47,511.72
partnership
Total 104.045,112.54 47,511.72
Note: for the transfer matters relating to the land acquisition and storage and the shutdown and
retirement of unit assets of Shenzhen Nanshan Power Zhongshan Company, please refer to the
Note V (XVIII).
(XXXIII) Share capital
Increase (+) and decrease (-) in the current
period
Balance at the Issuan Bonu Provident
Item Ending balance
end of last year ce of s fund Other Subt
new share conversio s otal
shares s n
Total
share 602,762,596.00 602,762,596.00
s
(XXXIV) Capital reserves
Increased Decreased
Balance at the
Item amount in the amount in the Ending balance
end of last year
current period current period
Capital premium
233,035,439.62 233,035,439.62
(equity premium)
Other capital
129,735,482.48 129,735,482.48
reserve
Total 362,770,922.10 362,770,922.10
Notes to the Financial statements Page 58
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(XXXV) Other comprehensive income
The current period amount
Amou Less: Less:
nt recognized in recognized in
before other other
Balance at the Attributabl
Beginning incom comprehensive comprehensive Less: Attributable Ending
Item end of last e to
balance e tax income in the income in the income to parent balance
year minority
for previous period previous period tax company
shareholde
the and transferred and transferred expenses after tax
rs after tax
curren to profit and to retained
t loss in the earnings in the
period current period current period
1. Other
comprehensive
income that
cannot be
reclassified into
profit or loss
Including:
remeasure
changes in
benefit plans
Other
comprehensive
income that
cannot be
transferred to
profit or loss
under the equity
method
Fair value
changes of -2,500,000.00 -2,500,000.00 -2,500,000.00
other
Notes to the Financial statements Page 59
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
The current period amount
Amou Less: Less:
nt recognized in recognized in
before other other
Balance at the Attributabl
Beginning incom comprehensive comprehensive Less: Attributable Ending
Item end of last e to
balance e tax income in the income in the income to parent balance
year minority
for previous period previous period tax company
shareholde
the and transferred and transferred expenses after tax
rs after tax
curren to profit and to retained
t loss in the earnings in the
period current period current period
investments in
equity
instruments
Total other
comprehensive -2,500,000.00 -2,500,000.00 -2,500,000.00
income
Notes to the Financial statements Page 60
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(XXXVI) Special reserves
Balance at the Increased Decreased
Ending
Item end of last amount in the amount in the
balance
year current period current period
Safety production
13,270,901.66 13,270,901.66
costs
Total 13,270,901.66 13,270,901.66
Note: in accordance with the Management Measures for the Withdrawal and Use of Enterprise
Safety Production Costs (CZ [2022] No. 136) (released on December 12, 2022), the Company
withdrew safety production costs and included them in the current profit or loss, and transferred
them to special reserve at the same time.
(XXXVII) Surplus reserves
Increased Decreased
Balance at the
Item amount in the amount in the Ending balance
end of last year
current period current period
Statutory surplus
310,158,957.87 310,158,957.87
reserve
Discretionary
22,749,439.73 22,749,439.73
surplus reserve
Total 332,908,397.60 332,908,397.60
(XXXVIII) Undistributed profits
The current period Amount in previous
Item
amount period
Undistributed profits at the end of last year
159,187,979.14 319,351,219.81
before adjustments
Adjustments to the total amount of the
undistributed profits at the beginning of the
year (increase +, decrease -)
Undistributed profits at the beginning of
159,187,979.14 319,351,219.81
the year after adjustments
Plus: net profit attributable to owners of
4,158,797.10 -160,163,240.67
parent company for the current period
Less: withdrawal of statutory surplus
reserve
Dividends payable on ordinary shares
Ending undistributed profits 163,346,776.24 159,187,979.14
(XXXIX) Operating revenue and operating costs
The current period amount Amount in previous period
Item
Revenue Cost Revenue Cost
Main
588,370,569.20 581,180,842.37 692,615,690.26 804,420,389.38
business
Other
1,409,621.51 261,701.61 1,611,967.02 258,934.10
business
Total 589,780,190.71 581,442,543.98 694,227,657.28 804,679,323.48
Notes to the Financial statements Page 61
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
1. Break down by product or service type
The current period amount Amount in previous period
Item
Revenue Cost Revenue Cost
Power
production
562,688,722.91 572,117,240.68 650,670,587.61 779,733,245.77
and sales
revenue
Revenue
from
integrated 25,681,847.29 9,063,601.69 41,945,102.65 24,687,143.61
energy
services
Other
1,409,620.51 261,701.61 1,611,967.02 258,934.10
revenue
Total 589,780,190.71 581,442,543.98 694,227,657.28 804,679,323.48
2. By region
The current period amount Amount in previous period
Item
Revenue Cost Revenue Cost
Domestic 589,780,190.71 581,442,543.98 694,227,657.28 804,679,323.48
Total 589,780,190.71 581,442,543.98 694,227,657.28 804,679,323.48
3. Revenue broken down by time of transfer of goods or services
The current period Amount in previous
Item
amount period
Recognize revenue at a certain
564,098,343.42 652,282,554.63
time point
Recognize revenue at a certain
25,681,847.29 41,945,102.65
time point
Total 589,780,190.71 694,227,657.28
(XL) Taxes and surcharges
The current period Amount in previous
Item
amount period
Property tax 2,241,783.87 2,254,621.19
Land use tax 887,196.02 761,201.97
Stamp duty 542,870.30 827,734.86
Urban maintenance and
653,636.44 881,150.58
construction tax
Education surcharge 277,505.45 376,909.09
Local education surcharge 185,003.66 251,272.77
Environmental protection tax 8,230.82 32,638.18
Notes to the Financial statements Page 62
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
The current period Amount in previous
Item
amount period
Vehicle and vessel tax 3,390.00 15,821.56
Total 4,799,616.56 5,401,350.20
(XLI) Selling and distribution expenses
The current period Amount in previous
Item
amount period
Employee compensation 1,884,492.17 273,048.37
Travel expenses 363,759.10
Office expenses 250,648.83
Entertainment expenses 160,201.41 13,684.45
Agency fee 141,603.76 45,050.50
Others 31,043.38 43,272.46
Total 2,831,748.65 375,055.78
(XLII) G&A expenses
Amount in previous
Item The current period amount
period
Employee compensation 29,928,766.04 49,552,978.78
Depreciation cost 15,161,467.11 12,727,414.30
Agency fee 2,506,646.25 2,917,219.44
Entertainment expenses 1,500,934.74 2,262,676.26
Water, electricity and property
1,094,236.61 1,066,655.06
management fees
Repair costs 815,123.18 438,047.18
Communication and information
744,919.13 632,219.43
fees
Travel expenses 702,232.98 346,228.17
Vehicle usage fee 607,305.89 1,000,874.34
Office expenses 572,337.65 566,218.06
Board of Directors fees 472,695.27 458,825.47
Greening and cleaning fees 326,335.65 207,689.97
Rental fees 291,561.03 326,066.00
Stock related fee 114,895.51 512,986.66
Amortization of intangible assets 65,558.04 76,716.36
Others 3,425,581.79 6,006,535.06
Total 58,330,596.87 79,099,350.54
Notes to the Financial statements Page 63
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(XLIII) R&D expenses
Amount in previous
Item The current period amount
period
Employee compensation 24,140,938.27 23,134,437.76
Depreciation cost 1,705,020.54 1,822,436.62
Others 993,953.93 690,660.01
Total 26,839,912.74 25,647,534.39
(XLIV) Financial expenses
The current period Amount in previous
Item
amount period
Interest expenses 18,400,119.58 40,218,036.98
Less: interest income 7,358,119.93 8,790,975.96
Exchange losses (income
-72,164.01 -460,083.33
expressed with "-")
Handling charges 344,806.25 247,340.17
Unrecognized amortization of
264,995.49 928,484.64
financing expenses
Total 11,579,637.38 32,142,802.50
(XLV) Other benefits
1.Details of other income
The current period Amount in previous
Item
amount period
Government subsidies 44,431,212.00 9,033,196.38
Personal tax handling charges
74,677.51 299,897.34
refund
44,505,889.51
Total 9,333,093.72
2.Government subsidies included in other income
For information on the amount of government subsidies included in other income for the current
period, please see Note VIII (II) of the notes to the financial statements.
(XLVI) Investment income
The current period Amount in previous
Item
amount period
Investment income from financial
assets held for trading during the 18,538,064.54 58,227,971.21
holding period
Dividend income received from
investments in equity instruments 8,740,206.13 8,853,587.35
during the holding period
Income from long-term equity
investments accounted for equity 7,719,627.80 3,635,763.05
method under the equity method
Notes to the Financial statements Page 64
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
The current period Amount in previous
Item
amount period
Total 34,997,898.47 70,717,321.61
(XLVII) Losses from credit impairment
The current period Amount in previous
Item
amount period
Provision for bad debts of accounts
85,000.00 -1,711,964.42
receivable
Provision for bad debts of other
1,105,348.40
receivables
Total 1,190,348.40 -1,711,964.42
(XLVIII) Asset impairment loss
The current period Amount in previous
Item
amount period
Inventory depreciation loss and
provision for impairment of -162,985.78 -661,460.81
contract performance cost
Provision for impairment of fixed
-7,246,238.48
assets
Provision for impairment of
-1,038,734.63
construction in progress
Total -162,985.78 -8,946,433.92
(XLIX) Gains from disposal of assets
Amount included
in non-recurring
The current Amount in
Item gains and losses
period amount previous period
in the current
period
Profits and losses on
disposal of non-current 1,886,136.92 291,985.88 1,886,136.92
assets
Total 1,886,136.92 291,985.88 1,886,136.92
(L) Non-operating revenue
Amount included
in non-recurring
The current Amount in
Item gains and losses
period amount previous period
in the current
period
Power outage and
5,522,309.24 5,522,309.24
insurance compensation
Payables that really cannot
3,683,060.82 3,683,060.82
be paid
Government subsidies 39,600.00
Others 2,476,793.13 2,476,793.13
Total 11,687,001.25 39,600.00 11,687,001.25
Notes to the Financial statements Page 65
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(LI) Non-operating expenses
Amount included
The current period Amount in in non-recurring
Item
amount previous period gains and losses in
the current period
Losses from damage or
scrapping of non-current 7,745.81 1,463,939.59 7,745.81
assets
External donations 10,000.00
Others 58,370.42 717,844.64 58,370.42
Total 66,116.23 2,191,784.23 66,116.23
(LII) Income tax expenses
1. Income tax expenses schedule
The current period Amount in previous
Item
amount period
Current income tax expenses
Deferred income tax expenses -63,080.11
Total -63,080.11
2. Adjustment process of accounting profit and income tax expenses
The current period
Item
amount
Total profit -2,005,692.93
Income tax expenses calculated at statutory [or applicable] tax
-300,853.94
rate
Impact of different tax rates applicable to subsidiaries -5,988,013.88
Impact of adjusting prior periods' income taxes
Impact of non-taxable revenue -1,233,275.33
Impact of non-deductible costs, expenses and losses 276,028.61
Impact of deductible losses on the use of unrecognized deferred
tax assets in prior periods
Impact of deductible temporary differences or deductible losses
for which no deferred tax assets have been recognized in the 11,272,101.45
current period
Changes in beginning deferred tax assets/liability balances due to
tax rate adjustment
Impact of additional deduction for R&D expenses -4,025,986.91
Income tax expenses
(LIII) Earnings per share
1. Basic earnings per share
Basic earnings per share is calculated by dividing the consolidated net profit attributable to
ordinary shareholders of the parent company by the weighted average of outstanding ordinary
Notes to the Financial statements Page 66
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
shares of the Company:
The current period Amount in previous
Item
amount period
Consolidated net profit attributable to
ordinary shareholders of the parent 4,158,797.10 -160,163,240.67
company
Weighted average of outstanding ordinary
602,762,596.00 602,762,596.00
shares of the Company
Basic earnings per share 0.0069 -0.2657
2. Diluted earnings per share
The current period Amount in previous
Item
amount period
Consolidated net profit attributable to
ordinary shareholders of the parent 4,158,797.10 -160,163,240.67
company (diluted)
Weighted average of outstanding ordinary
602,762,596.00 602,762,596.00
shares of the Company (diluted)
Diluted earnings per share 0.0069 -0.2657
(LIV) Items of Statement of Cash Flows
1. Cash related to operating activities
（1) Other cash received related to operating activities
The current period Amount in previous
Item
amount period
Income from government subsidies 30,154,963.47 2,800,716.98
Interest income 6,416,103.02 9,272,736.48
Current accounts received, etc. 9,200,800.64 42,010,090.88
Total 45,771,867.13 54,083,544.34
(2) Other cash paid related to operating activities
The current period Amount in
Item
amount previous period
Expenses from payment period 32,799,144.64 24,583,319.72
Current accounts paid, etc. 3,524,581.70 1,221,929.96
Total 36,323,726.34 25,805,249.68
2. Cash related to investing activities
(1) Other cash received related to investing activities
The current period Amount in
Item
amount previous period
Received interest on current accounts
344,800.00
among related parties
Total 344,800.00
Notes to the Financial statements Page 67
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(2) Other cash payments related to investing activities
The current period Amount in
Item
amount previous period
Deposit of financial assets held for trading
and large certificates of deposit for cash 446,000,000.00 180,000,000.00
payments
Cash paid for disposal of assets 393,066.79 9,000.00
Total 446,393,066.79 180,009,000.00
3. Cash related to financing activities
（1）Other cash paid related to financing activities
The current period Amount in
Item
amount previous period
Note deposit 27,474,594.34
Rental fees 6,314,826.00
Total 6,314,826.00 27,474,594.34
（2）Changes in liabilities arising from financing activities
Increased amount in the Decreased amount in the
Balance at the
current period current period Ending
Item end of last
Non-cash Cash Non-cash balance
year Cash changes
changes changes changes
Lease
liabilities
(including 6,314,826.0 2,527,155.5
8,276,279.98 830,697.03 264,995.49
those due 0 2
within one
year)
Short-term
borrowing
s
879,957,857. 341,933,506.3 5,575,880.9 886,229,35 341,237,88
(including
44 7 6 8.05 6.72
those due
within one
year)
Long-term
28,019,758.6 47,009,450. 60,228,597.
borrowing 79,160,420.53 57,868.77
8 75 23
s
916,253,896. 421,093,926.9 6,464,446.7 939,553,63 403,993,63
Total 264,995.49
10 0 6 4.80 9.47
(LV) Supplementary information of Statement of Cash Flows
1. Supplementary information of Statement of Cash Flows
The current period Amount in previous
Supplementary information
amount period
1. Adjusting net profit to cash flows from
Notes to the Financial statements Page 68
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
The current period Amount in previous
Supplementary information
amount period
operating activities
Net profit -2,005,692.93 -185,522,860.86
Plus: losses from credit impairment -1,190,348.40 1,711,964.42
Provision for asset impairment 162,985.78 8,946,433.92
Depreciation and amortization of
168,777.60 175,707.60
investment properties
Depreciation of fixed assets 29,328,545.77 31,258,029.09
Depreciation of right-of-use assets 5,440,671.48 8,614,396.47
Amortization of intangible assets 589,301.32 701,403.22
Amortization of long-term deferred
916,014.97 497,331.12
expenses
Amortization of deferred income -17,966,248.53 -6,324,373.49
Losses from disposal of fixed assets,
intangible assets and other long-term assets -1,886,136.92 -291,985.88
(income expressed with "-")
Losses on write-off of fixed assets (income
7,745.81 1,463,939.59
expressed with "-")
Losses from changes in fair value (income
expressed with "-")
Financial expenses (income expressed with
18,665,115.07 40,218,036.98
"-")
Investment losses (income expressed with
-34,997,898.47 -70,717,321.61
"-")
Decrease in deferred tax assets (increases
-63,080.11
expressed with "-")
Increase in deferred tax liabilities
(decreases expressed with "-")
Decrease in inventories (increases
-1,023,698.59 5,500,517.27
expressed with "-")
Decrease in operating receivables
43,475,853.03 289,715,229.11
(increases expressed with "-")
Increase in operating payables (decreases
-140,056,963.91 81,285,035.42
expressed with "-")
Others
Net cash flows from operating activities -100,371,976.92 207,168,402.26
2. Significant investments and financing
activities that do not involve cash receipts
and payments
Conversion of debt into capital
Convertible corporate bonds due within
one year
Fixed assets acquired under financial lease
3. Net changes in cash and cash
equivalents
Ending balance of cash 310,734,919.56 648,021,672.06
Notes to the Financial statements Page 69
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
The current period Amount in previous
Supplementary information
amount period
Less: beginning balance of cash 648,021,672.06 456,751,614.75
Plus: ending balance of cash equivalents
Less: beginning balance of cash
232,853,018.84
equivalents
Net increase in cash and cash equivalents -337,286,752.50 -41,582,961.53
2. Composition of cash and cash equivalents
Balance at the end
Item Ending balance
of last year
I. Cash 310,734,919.56 648,021,672.06
Including: cash on hand 30,329.83 37,698.63
Bank deposits readily available for payment 310,694,227.98 647,983,965.23
Other monetary funds readily available for
10,361.75 8.20
payment
Deposits with the central bank available for
payment
Interbank deposits
Interbank lending
II. Cash equivalents
Including: bond investments due within three
months
III. Balance of ending cash and cash
310,734,919.56 648,021,672.06
equivalents
Including: restricted cash and cash equivalents
used by the parent company or subsidiaries
within the group
3. Monetary funds that are not classified as cash and cash equivalents
Reasons for not
The current period Amount in previous being classified as
Item
amount period cash and cash
equivalents
L/G deposit 5,453,862.93 Frozen, restricted
Deposit for bank
27,474,594.34 Frozen, restricted
acceptance bills
Total 5,453,862.93 27,474,594.34
(LVI) Assets with restricted ownership or right of use
Item Ending book value Reason for restriction
Monetary funds 5,453,862.93 L/G deposit
Notes to the Financial statements Page 70
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Item Ending book value Reason for restriction
Total 5,453,862.93
(LVII) Foreign currency monetary items
1. Foreign currency monetary items
Conversion
Ending foreign Ending converted
Item exchange
currency balance RMB balance
rate
Monetary funds
Including: USD 838,420.63 7.0827 5,931,199.10
EUR 1,017.87 7.8592 7,999.64
HKD 179,036.04 0.90622 162,246.04
SGD 3,328.03 5.3772 17,895.49
(LVIII) Lease
1. The Company serves as the Lessee
The current period
Item Amount in previous period
amount
Interest expenses on lease
264,995.49 928,484.64
liabilities
Total cash outflow related to
6,314,826.00 6,014,119.00
lease
Total 6,579,821.49 6,942,603.64
2. The Company serves as the Lessor
（1）Operating leases when serving as the Lessor
Including: revenue related to
Item Lease income variable lease payments not
included in lease receipts
House lease 1,258,431.54
Total 1,258,431.54
VI. R&D expenditures
Amount incurred in Amount incurred in
Item
the current period previous period
Employee compensation 24,140,938.27 23,134,437.76
Depreciation and amortization costs 1,705,020.54 1,822,436.62
Repair costs 946,164.21 581,590.04
Royalties 47,789.72 108,219.97
Notes to the Financial statements Page 71
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Amount incurred in Amount incurred in
Item
the current period previous period
Others 850.00
Total 26,839,912.74 25,647,534.39
Including: expensed R&D
26,839,912.74 25,647,534.39
expenditures
Capitalized R&D
expenditures
Total 26,839,912.74 25,647,534.39
VII. Equity in other entities
(I) Equity in subsidiaries
1. Composition of enterprise group
Main Shareholding
ratio (%) Acquisition
Name of subsidiary place of
method
business Direct Indirect
Shenzhen Nanshan Power
Zhongshan 80.00 Establishment
(Zhongshan) Power Co., Ltd.
Shenzhen Nanshan Power Gas
Turbine Engineering Technology Shenzhen 100.00 Establishment
(Shenzhen) Co., Ltd.
Shenzhen Nanshan Power
Environmental Protection (Shenzhen) Shenzhen 100.00 Establishment
Co., Ltd.
Shenzhen Xiefu Energy Co., Ltd. Shenzhen 50.00 Establishment
Shenzhen New Power Industrial Co.,
Shenzhen 100.00 Establishment
Ltd.
Shennan Energy (Singapore) Co., Ltd. Singapore 100.00 Establishment
Hong Kong Syndisome Co., Ltd. Hongkong 100.00 Establishment
Zhuhai Hengqin Zhuozhi Investment
Zhuhai 99.96 Establishment
Partnership (Limited Partnership)
Note: Shenzhen Nanshan Power (Zhongshan) Warehousing Co., Ltd. was canceled on December
13, 2023.
2. Important non-wholly owned subsidiaries
Profits and
Shareholding losses
ratio of attributable to Ending balance
Name of subsidiary minority minority of minority
shareholders shareholders in interests
(%) the current
period
Shenzhen Nanshan Power
20.00 -6,239,610.76 -106,399,280.71
(Zhongshan) Power Co., Ltd.
1、
Notes to the Financial statements Page 72
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
3. Main financial information of important non-wholly owned subsidiaries
Ending balance/RMB Balance at the end of the previous year/RMB
Name
of Non-
Non- Non- Non-
subsidia Current Total Current Total Current Total Current current Total
current current current
ry assets assets liabilities liabilities assets assets liabilities liabilitie liabilities
assets liabilities assets
s
Shenzh
en
Nansha
n Power
(Zhong
shan)
Power
Co.,
24,201,2 244,116,9 268,318,1 696,314,5 104,000,0 800,314,5 43,407,5 216,418,0 259,825,6 755,501,5 5,122,3 760,623,9
Ltd.
15.36 38.96 54.32 57.88 00.00 57.88 71.96 67.18 39.14 88.98 99.93 88.91
(Shenzh
en
Nansha
n Power
Zhongs
han
Compa
ny)
Amount for the current period/RMB Amount in previous period/RMB
Name of Total Total
subsidiary Operating Cash flows from Operating Cash flows from
Net profit comprehensiv Net profit comprehensive
revenue operating activities revenue operating activities
e income income
Shenzhen
Nanshan 62,908,561.23 -31,198,053.79 -31,198,053.79 -1,869,970.79 18,619,522.44 -111,394,129.17 -111,394,129.17 69,486,856.28
Power
(Zhongshan)
Notes to the Financial statements Page 73
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Amount for the current period/RMB Amount in previous period/RMB
Name of Total Total
subsidiary Operating Cash flows from Operating Cash flows from
Net profit comprehensiv Net profit comprehensive
revenue operating activities revenue operating activities
e income income
Power Co.,
Ltd. (Shenzhen
Nanshan
Power
Zhongshan
Company)
Notes to the Financial statements Page 74
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(II) Equity in joint venture arrangements or associates
1. Significant joint ventures or associates
Shareholding ratio Accounting
Name of joint Main (%) treatments for
Main business
ventures or place of investments in
activities
associates business Direct Indirect joint ventures or
associates
Renshan
Town, Terminal
Huidong Xiefu 40.00 Equity method
Huidong operations
County
Liaoyuan
Environmental Yixing, Environmental
9.935 Equity method
Protection Jiangsu protection
(note)
Note: The Company invested RMB 72,873,680.00 in Liaoyuan Environmental Protection,
accounting for 9.935% of the equity of Liaoyuan Environmental Protection, making it the second
largest shareholder Liaoyuan Environmental Protection.. The Board of Directors of Liaoyuan
Environmental Protection has five members, with the Company appointing one member on March
12, 2022, which has a significant influence on Liaoyuan Environmental Protection.
2. Main financial information of significant joint ventures or associates
Balance at the end of previous
Ending balance/amount incurred
year/amount incurred in previous
in the current period
period
Liaoyuan Liaoyuan
Huidong Huidong
Environmental Environmental
Xiefu Xiefu
Protection Protection
Current assets 545,635,587.61 9,376,533.54 596,029,890.70 7,664,392.90
Non-current assets 419,944,510.12 9,354,277.78 440,877,926.65 10,364,232.86
Total assets 965,580,097.73 18,730,811.32 1,036,907,817.35 18,028,625.76
Current liabilities 198,836,634.15 36,567,083.73 345,141,327.50 37,712,176.91
Non-current liabilities 26,202,854.57 25,415,201.79
Total liabilities 225,039,488.72 36,567,083.73 370,556,529.29 37,712,176.91
Minority interests 223,928,134.66 207.978.431.69
Equity attributable to
- -
shareholders of the 516,612,474.35 458,372,856.37
17,836,272.41 19,683,551.15
parent company
Net asset share
calculated based on 51,325,449.33 -7,134,508.96 45,539,343.28 -7,873,420.46
shareholding ratio
Adjustments 33,508,393.41 12,301,842.26 33,542,733.16 12,287,442.26
-Others 33,508,393.41 12,301,842.26 33,542,733.16 12,287,442.26
Book value of equity
investments in 84,833,842.74 5,167,333.30 79,082,076.44 4,414,021.80
associates
Fair value of equity
investments in
associates with publicly
quoted prices
Notes to the Financial statements Page 75
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Balance at the end of previous
Ending balance/amount incurred
year/amount incurred in previous
in the current period
period
Liaoyuan Liaoyuan
Huidong Huidong
Environmental Environmental
Xiefu Xiefu
Protection Protection
Operating revenue 8,268,259.69 646,656,060.19 7,234,419.21
660,404,337.83
Net profit 85,937,325.14 1,883,278.74 138,734,347.94 -632,550.08
Net profit attributable to
shareholders of the 68,971,850.12 1,883,278.74 116,960,145.29 -632,550.08
parent company
Net profit from
discontinued operations
Other comprehensive
income
Total comprehensive
68,971,850.12 1,883,278.74 116,960,145.29 -632,550.08
income
Dividends received
from associates in the 1,214,550.00
current period
VIII. Government subsidies
(1) Liability items involving government subsidies
Amount
New Amount
included Other
subsidy transferred Related
Balance at in non- change
Liabiliti amount to other Ending to
the end of operating s in the
es in the income in balance assets/inc
last year revenue in current
current the current ome
the current period
period period
period
Deferre
82,145,596 3,690,00 17,966,24 67,869,34 Asset
d
.60 0.00 8.53 8.07 related
income
82,145,596 3,690,00 17,966,24 67,869,34
Total
.60 0.00 8.53 8.07
The details of the projects involving government subsidies are as follows:
Amount
New
recognized
Balance at subsidy Other Asset
in profit or Ending
Item the end of amount in change related/inco
loss in the balance
last year the current s me related
current
period
period
Shenzhen air
quality 49,330,169. 4,731,818.1 44,598,351.
Asset related
improvement 80 6 64
subsidy
Government
subsidies for
23,615,664. 18,376,607.
low-nitrogen 5,239,056.7 Asset related
69 94
equipment 5
renovation
Notes to the Financial statements Page 76
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Circular
economy
support fund 5,510,265.1
4,564,285.6 945,979.59 Asset related
for sludge 9
0
drying
project
Treasury
bond subsidy
2,061,250.0
for sludge 2,061,250.0 Asset related
0
drying 0
project
Funds for
technological
transformatio
n and 988,055.58 70,666.68 917,388.90 Asset related
investment
projects in
2021-2022
Special funds
for energy
conservation 342,111.34 342,111.34 Asset related
and emission
reduction
Motor energy
efficiency
improvement 298,080.00 34,560.00 263,520.00 Asset related
subsidy
scheme
Special funds
for
promoting 1,500,000. 1,125,000.0
375,000.00 Asset related
high-quality 00 0
industrial
development
Funding for
Carbon Peak
Support
Program
Industrial
2,190,000. 1,642,500.0
Energy 547,500.00 Asset related
00 0
Conservation
and
Comprehensi
ve Utilization
Project
82,145,596. 3,690,000. 17,966,248. 67,869,348.
Total
60 00 53 07
(II) Government subsidies included in the current profits and losses
Amount incurred in the Amount incurred in previous
Subsidy project
current period period
Other benefits 44,431,212.00 9,033,196.38
Non-operating revenue 39,600.00
Notes to the Financial statements Page 77
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Total 44,431,212.00 9,072,796.38
Details of government subsidies included in other income are as follows:
Asset
The current Amount in
Subsidy project related/income
period amount previous period
related
Low nitrogen project renovation grants 5,239,056.75 488,621.77 Asset related
Shenzhen air quality improvement
4,731,818.16 4,731,818.16 Asset related
subsidy
Circular economy support fund for
4,564,285.60 647,002.92 Asset related
sludge drying project
Treasury bond subsidy for sludge drying
2,061,250.00 255,000.00 Asset related
project
Special funds for energy conservation
342,111.34 114,037.32 Asset related
and emission reduction
Motor energy efficiency improvement
34,560.00 34,560.00 Asset related
subsidy scheme
Funds for technological transformation
70,666.68 53,333.32 Asset related
and investment projects in 2021-2022
Pilot demonstration funding for
375,000.00 Asset related
industrial "carbon peak" work
Industrial development special grants 547,500.00 Asset related
Thermal power plant relief grants 25,400,000.00 Income related
Green and low-carbon development
450,000.00 Income related
project grants
National high-tech enterprise doubling
300,000.00 500,000.00 Income related
program
Stable employment subsidy 140,838.47 153,231.98 Income related
Pilot demonstration funding for
100,000.00 570,000.00 Income related
industrial "carbon peak" work
Science and technology innovation
46,500.00 28,000.00 Income related
voucher
Special funds for industrial development 27,625.00 Income related
Industrial development special grants 246,100.00 Income related
One-time training subsidy for employees
128,000.00 Income related
who stay on duty
Support funds for office buildings of
1,000,000.00 Income related
listed companies
Social security subsidies 83,490.91 Income related
Total 44,431,212.00 9,033,196.38
IX. Risks related to financial instruments
The Company's main financial instruments include equity investments, long-term and short-term
borrowings, accounts receivable, accounts payable, other receivables, etc. For details of various
financial instruments, please refer to the relevant items in the Note V. The risks related to these
financial instruments, and the risk management policies adopted by the Company to mitigate these
risks are described below. The management of the Company manages and monitors these risk
Notes to the Financial statements Page 78
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
exposures to ensure that the above risks are controlled within a limited range.
The Company uses sensitivity analysis techniques to analyze the impact that reasonable and
probable changes in risk variables may have on current profit or loss or shareholders' equity. Since
any risk variables rarely changes in isolation, and the correlation between variables will have a
significant effect on the final amount of impact of a change in a certain risk variable, the following
is therefore based on the assumption that changes in each variable are made independently of each
other:
(I) Credit risk
Credit risk refers to the risk that one party to financial instruments fails to perform its obligations,
causing the other party to suffer financial losses. The Company is mainly exposed to customer
credit risk caused by credit sales. Before entering into a new contract, the Company assesses the
credit risk of the new customers, including external credit ratings and, in some cases, bank
references (when this information is available). The Company sets a credit limit for each customer,
which is the maximum amount for which no additional approval is required.
The Company ensures that the Company's overall credit risk is within a controllable range through
quarterly monitoring of credit ratings of existing customers and monthly review of aging analysis
of accounts receivable. When monitoring the credit risk of customers, customers are grouped
according to their credit characteristics. Customers rated as "high risk" are placed on the restricted
customer list and may only be given for credit sales by the Company in the future with additional
approval, otherwise they must be required to pay the corresponding amount in advance.
(II) Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligations that
is settled by the delivery of cash or other financial assets. It is the Company's policy to ensure that
it has sufficient cash to repay its debts as and when they fall due. Liquidity risk is centrally
controlled by the Company's Finance Department. The Finance Department ensures that the
Company has sufficient funds to repay its debt under all reasonable forecasts by monitoring cash
balances, readily realizable securities, and rolling forecasts of cash flows over the next 12 months.
(III) Market risk
Market risk of financial instruments refers to the risk that the fair value or future cash flows of
financial instruments fluctuates due to changes in market prices, including exchange rate risk,
interest rate risk and other price risks.
(1) Interest rate risk
Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments
fluctuates due to changes in market interest rates. The Company's risk of changes in cash flows of
financial instruments due to changes in interest rates is mainly related to variable-rate bank
borrowings.
The sensitivity analysis of interest rate risk is based on the following assumptions:
changes in market interest rates affect interest income or expenses of variable-rate financial
instruments; for fixed-rate financial instruments measured fair value, changes in market interest
rates only affect their interest income or expenses; for derivative financial instruments designated
as hedging instruments, changes in market interest rates affect their fair value, and all interest rate
hedging is expected to be highly effective; changes in the fair value of derivative financial
instruments and other financial assets and liabilities which are calculated by using the discounted
cash flow method at the market interest rate on the balance sheet date.
As of December 31, 2023, the Company's interest on bank borrowings at variable rates totaled
RMB 4,087,502.74. Based on the above assumptions, with other variables unchanged, assuming a
5% changes in interest rates, the pre-tax impact on current profits and losses and shareholders'
equity is as follows:
Notes to the Financial statements Page 79
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Current year Previous year
Changes in Impact on Impact on
interest rates Impact on Impact on
shareholders' shareholders'
profits profits
equity equity
Increase of
-204,375.14 -204,375.14 -365,252.94 -365,252.94
5%
Decrease of
204,375.14 204,375.14 365,252.94 365,252.94
5%
(2) Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flows of financial instruments
fluctuates due to fluctuations in foreign exchange rates. The Company tries its best to match
foreign currency revenues with foreign currency expenditures to reduce exchange rate risk. In
addition, the Company may also enter into forward foreign exchange contracts or currency swap
contracts to avoid exchange rate risk. During the current period and the previous period, the
Company did not sign any forward foreign exchange contract or currency swap contract.
The exchange rate risk exposed to the Company mainly comes from financial assets and financial
liabilities denominated in foreign currencies, and the amounts of foreign-currency financial assets
and foreign-currency financial liabilities converted into RMB are listed as follows:
Ending balance Balance at the end of last year
Other Other
Item
USD foreign Total USD foreign Total
currencies currencies
Monetary
5,938280.40 188,141.17 6,119,340.27 5,815,610.10 279,292.55 6,094,902.65
funds
Total 5,938280.40 188,141.17 6,119,340.27 5,815,610.10 279,292.55 6,094,902.65
As of December 31, 2023, with all other variables remaining unchanged, if RMB appreciates or
depreciates by 5% against foreign currencies, the Company's net profit will increase or decrease
by RMB 306,321.08. The Management believes that 5% reasonably reflects the reasonable range
of possible changes in RMB against foreign currencies in the following year.
X. Disclosure of fair value
The input value used for measuring fair value is divided into three levels:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities
that the Company can access on the measurement date.
Level 2 inputs are directly or indirectly observable inputs of relevant assets or liabilities other than
Level 1 inputs.
Level 3 inputs are unobservable inputs of related assets or liabilities.
The level to which the results of fair value measurement belong is determined by the lowest level
of inputs that are significant to fair value measurement as a whole.
1. Fair values of assets and liabilities measured at fair value as at December 31, 2023
Fair value as at December 31, 2023
Item Measured at the Measured at the
Measured at the fair
fair value of fair value of Total
value of level 3
level 1 level 2
Notes to the Financial statements Page 80
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Fair value as at December 31, 2023
Item Measured at the Measured at the
Measured at the fair
fair value of fair value of Total
value of level 3
level 1 level 2
Continuous
measurement at fair
value
Financial assets held
226,000,000.00 226,000,000.00
for trading
Other investments in
300,615,000.00 300,615,000.00
equity instruments
Total assets with
continuous
526,615,000.00 526,615,000.00
measurement at fair
value
2. Basis for determining the market price of items measured at the fair value of level 3 on a
continuing and non-continuous basis
For financial instruments that are not traded in the active market, the Company uses valuation
techniques to determine their fair values. The valuation models used mainly are discounted cash
flow model and market comparable company model, etc. The input values of valuation techniques
mainly include risk-free interest rate, benchmark interest rate, exchange rate, credit spread,
liquidity premium, illiquidity discount, etc.
XI.. Related parties and related transactions
(I) Information on the parent company of the Company
The Company does not have a parent company as none of its shareholders hold more than 50% of
the Company's shares and cannot form a control relationship with the Company by other means.
(II) Information on the Company's subsidiaries
For details of the Company's subsidiaries, please refer to the Note "VII. (I) Equity in subsidiaries".
(III) Information on the Company's joint ventures and associates
For details of the Company's significant joint ventures or associates, please refer to the Note "VII.
(II) Equity in joint venture arrangements or associates".
(IV) Information on other related parties
Relationship between other related
Name of other related parties
parties and the Company
Shenzhen Energy Corporation (hereinafter Legal person holding more than 5% of
referred to as "Energy Corporation") the Company's shares
Legal person holding more than 5% of
Shenzhen Guangju Industrial Co., Ltd.
the Company's shares
HONG KONG NAM HOI Legal person holding more than 5% of
(INTERNATIONAL) LTD the Company's shares
Legal person that indirectly holds more
Shenzhen Capital Holdings Co., Ltd. than 5% of the Company's shares
through Energy Corporation
Artron Art (Group) Co., Ltd. Sun Huirong, the director of the
Notes to the Financial statements Page 81
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Relationship between other related
Name of other related parties
parties and the Company
Company, serves as a director of this
company
Directors, supervisors and senior officers of the
Key managers
Company
(V) Related transactions
1. Related transactions of purchase and sale of goods and rendering and acceptance of
services
Purchase of goods/acceptance of services
Unit: RMB
Amount of Whether Amount
Amount
Details of transactions the incurred
incurred in
Related party related approved transaction in
the current
transactions limit is previous
period
exceeded period
Artron Art Purchase of
146,016.00
(Group) Co., Ltd. goods
2. Related guarantees
The Company has no related-party guarantees.
3. Remuneration of key officers
The current period Amount in previous
Item
amount period
Remuneration of directors,
RMB 5.9984 million RMB 7.5319 million
supervisors and senior officers
(VI) Receivables and payables of related parties
1. Receivables
Project Book balance at the end
Related party Ending book balance
name of last year
Other
receivables
Huidong Xiefu 15,532,630.74 15,640,915.45
Total 15,532,630.74 15,640,915.45
XII. Commitments and contingencies
(I) Important commitments
1. Information on letters of guarantee issued as of December 31, 2023
Within the credit limit, the Company applied to the Shenzhen Branch of China Guangfa Bank for
a performance bond for the Company and its wholly-owned subsidiary, New Power Company,
with an amount of RMB 27,202,171.15, which will expire on March 31, 2024.
Within the credit limit, the Company applied to the Shenzhen Branch of China Minsheng Bank
Notes to the Financial statements Page 82
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Co., Ltd. for a performance bond for the Company and its wholly-owned subsidiary, New Power
Company, with an amount of RMB 30,000,000.00, which will expire on June 30, 2024.
2. Other commitments
As of December 31, 2023, except for the above matters, the Company has no other important
commitments that need to be disclosed.
(II) Contingencies
As of December 31, 2023, the Company has no contingencies that need to be disclosed.
XIII. Events after the balance sheet date
(I) Important non-adjusting events
1. After the audit and approval of the 23rd Extraordinary Meeting of the Ninth Board of Directors
on February 6, 2024, Shenzhen Nanshan Power Zhongshan Company, a subsidiary of the
Company, intends to classify and package and dispose of two sets of generating units and heavy
oil processing line related assets through public invitation for offer and transfer on Shenzhen
United Property and Equity Exchange (hereinafter referred to as "Shenzhen Stock Exchange").
The above assets have an assessed value of RMB 159.4852 million excluding tax. Shenzhen
Pengxin Asset Appraisal Land and Real Estate Valuation Co., Ltd. has issued an appraisal report
with October 31, 2023 as the appraisal base date (PXZPBZ [2023] No. S211, PXZPBZ [2023] No.
S212).
2. After deliberation and approval at the 22nd Extraordinary Meeting of the Ninth Board of
Directors of the Company, the Company and its held subsidiary Xiefu Company intend to enter
into a Property Entrustment Management Contract with the Energy Group, specifying that the
Company will serve as the supervisory and guiding entity, and Xiefu Company will provide
property leasing and management services to the Energy Group. Energy Group will entrust and
authorize Xiefu Company to operate and manage the 13 properties it holds. Period of entrusted
management: 5 years (From January 1, 2024 to December 31, 2024 is the period of trial operation,
and from January 1, 2025 to December 31, 2028 is the period of formal operation).
Apart from this, as of the date of this report, the Company has no subsequent events that need to
be disclosed.
XIV. Other important events
(I) Information on segments
1. Determination basis and accounting policies of reporting segments
For management purposes, the Company and subsidiaries are divided into business units based on
products and services. The Company has three reporting segments as follows:
（1）Power production and sale segment;
（2）Integrated energy service segment;
（3）Other Segments
The Company's management periodically evaluates the operating results of its operating segments
to decide on the allocation of resources to them and to evaluate their performance.
Segment reporting information is disclosed in accordance with the accounting policies and
measurement criteria used by the segments in reporting to the Management, which are consistent
with the basis of accounting and measurement used in the preparation of the financial statements.
Notes to the Financial statements Page 83
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
2. Financial information of reporting segments
Integrated
Power
Energy Other Inter-segment
Item Production and Total
Service Segments offseting
Sale Division
Segment
Operati
26,287,885.0
ng 563,055,729.51 1,101,142.92 664,566.75 589,780,190.71
3
revenue
Operati
572,347,128.29 9,063,601.69 189,242.84 157,428.84 581,442,543.98
ng costs
Total 2,230,338,488.9 145,669,771. 358,772,209. 2,049,365,388.
685,415,080.67
assets 1 41 04 69
Total
22,582,902.1
liabilitie 835,651,310.37 67,164,161.2 266,846,346.69 658,552,027.04
6
s 0
(II) Others
Annuity plan
According to the Company's enterprise annuity plan, the Company accrues and pays enterprise
annuities at 8% of employees' wages.
XV. Notes to the main items of the parent company's financial statements
(I) Accounts receivable
1. Disclosure of accounts receivable on an aging basis
Balance at the end of last
Aging Ending balance
year
Within 1 year 26,981,407.91 47,995,982.82
Subtotal 26,981,407.91 47,995,982.82
Less: provision for bad debts
Total 26,981,407.91 47,995,982.82
2. Accounts receivable are classified and disclosed according to the method of provision for
bad debts
Ending balance
Category Book balance Provision for bad debts
Ratio Provision Book value
Amount Amount
(%) ratio (%)
Provision for bad
Notes to the Financial statements Page 84
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Ending balance
Category Book balance Provision for bad debts
Ratio Provision Book value
Amount Amount
(%) ratio (%)
debts on an
individual basis
Provision
provision for bad
debts on a credit 26,981,407.91 100.00 26,981,407.91
risk portfolio
basis
Total 26,981,407.91 100.00 26,981,407.91
Balance at the end of last year
Category Book balance Provision for bad debts
Ratio Provision Book value
Amount Amount
(%) ratio (%)
Provision for bad
debts on an
individual basis
Provision
provision for bad
debts on a credit 47,995,982.82 100.00 47,995,982.82
risk portfolio
basis
Total 47,995,982.82 100.00 47,995,982.82
(1) Provision for bad debts on a portfolio basis:
Ending balance
Name of
Provision for bad
portfolio Accounts receivable Provision ratio (%)
debts
Portfolio II:
receivables
from power 26,981,407.91
production and
sales
Total 26,981,407.91
Notes to the Financial statements Page 85
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
3. Accounts receivable and contract assets of the top five ending balances by debtors
Ending
balance of
Proportion provision
Ending to the total for bad
Ending
Ending balance of ending debts of
balance
balance of accounts balance of accounts
Entity name of
accounts receivable accounts receivable
contract
receivable and contract receivable and
assets
assets and contract provision
assets (%) for contract
asset
impairment
Shenzhen
Power Supply
26,981,407.91 26,981,407.91 100.00
Bureau Co.,
Ltd.
Total 26,981,407.91 26,981,407.91 100.00
(II) Other receivables
Balance at the end of
Item Ending balance
last year
Interest receivable
Dividends receivable
Other receivables 714,553,901.02 851,189,111.89
Total 714,553,901.02 851,189,111.89
1. Other receivables
(1) Disclosure based on aging
Balance at the end of
Aging Ending balance
last year
Within 1 year 711,403,571.07 452,449,473.00
1 to 2 years 2,500.00 94,733,821.40
2 to 3 years 19,926.83
Over 3 years 29,172,845.44 331,315,534.10
Subtotal 740,578,916.51 878,518,755.33
Less: provision for bad debts 26,025,015.49 27,329,643.44
Total 714,553,901.02 851,189,111.89
(2) Disclosure by category
Ending balance
Category
Book balance Provision for bad debts Book value
Notes to the Financial statements Page 86
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Ratio Provision
Amount Amount
(%) ratio (%)
Provision for
bad debts on
26,025,015.49 3.51 26,025,015.49 100.00
an individual
basis
Provision
provision for
bad debts on
714,553,901.02 96.49 714,553,901.02
a credit risk
portfolio
basis
Total 740,578,916.51 100.00 26,025,015.49 3.51 714,553,901.02
Balance at the end of last year
Category Book balance Provision for bad debts
Ratio Provision Book value
Amount Amount
(%) ratio (%)
Provision for
bad debts on
27,617,758.22 3.14 27,329,643.44 98.96 288,114.78
an individual
basis
Provision
provision for
bad debts on
850,900,997.11 96.86 850,900,997.11
a credit risk
portfolio
basis
Total 878,518,755.33 100.00 27,329,643.44 3.11 851,189,111.89
① Provision for bad debts on an individual basis:
Balance at the end of last
Ending balance
year
Reason
Name Provision Provision Provisi
Book Book s for
for bad for bad on ratio
balance balance provisio
debts debts (%)
n
Not
Huiyang
expecte
Kangtai 14,311,626. 14,311,626. 14,311,626. 14,311,626.
100.00 d to be
Industrial 70 70 70 70
recover
Company
ed
Receivabl
es from Not
employee expecte
9,969,037.6 9,969,037.6 9,969,037.6 9,969,037.6
benefit 100.00 d to be
3 3 3 3
fund recover
dividends ed
and taxes
Receivabl Not
1,736,004.1 1,736,004.1 1,736,004.1 1,736,004.1
es from 100.00 expecte
6 6 6 6
purchase d to be
Notes to the Financial statements Page 87
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Balance at the end of last
Ending balance
year
Reason
Name Provision Provision Provisi
Book Book s for
for bad for bad on ratio
balance balance provisio
debts debts (%)
n
of recover
employee ed
dormitori
es
Not
expecte
1,601,089.7 1,312,974.9
Others 8,347.00 8,347.00 100.00 d to be
3 5
recover
ed
27,617,758. 27,329,643. 26,025,015. 26,025,015.
Total 100.00
22 44 49 49
① Provision for bad debts on a portfolio basis
Ending balance
Name Provision for bad
Other receivables Provision ratio (%)
debts
Portfolio IV:
transactions among
712,425,641.88
related parties within
the combination
Portfolio V: guarantee,
deposit and petty cash 1,625,577.32
portfolio
Portfolio VII: other
receivables and 502,681.82
temporary payments
Total 714,553,901.02
(3) Classification by nature of payment
Book balance at the end
Nature of payment Ending book balance
of last year
Transactions among related
712,425,641.88 850,503,678.18
parties within the combination
Other receivables and
14,645,149.15 16,178,134.74
temporary payments
Receivable from employees 11,882,548.16 10,084,796.20
Margin, security deposit and
1,625,577.32 1,752,146.21
petty cash portfolio
Subtotal 740,578,916.51 878,518,755.33
Less: provision for bad debts 26,025,015.49 27,329,643.44
Total 714,553,901.02 851,189,111.89
(4) Provision provision for bad debts
Provision for bad The first The second The third
Total
debts stage stage phase
Notes to the Financial statements Page 88
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Expected Expected
credit loss credit loss
Expected over the life over the life
credit losses of the of the
over the next instruments instruments
12 months (no credit (credit
impairment impairment
has occurred) has occurred)
Beginning balance 27,329,643.44 27,329,643.44
Beginning balance in
the current period
--Transfer to the
second stage
--Transfer to the third
stage
--Reverse to the
second stage
--Reverse to the first
stage
Provision for the
129,806.28 129,806.28
current period
Reverse for the current
1,235,154.68 1,235,154.68
period
Charge-off for the
199,279.55 199,279.55
current period
Write-off for the
current period
Other changes
Ending balance 26,025,015.49 26,025,015.49
(5) Centralized fund management
Amounts included in other receivables due
690,731,979.36
to centralized fund management
The Company centrally manages the funds
of its subsidiaries, with principal and
interest receivable from the subsidiaries
Situation description
amounting to RMB 690,731,979.36 and
principal and interest payable to subsidiaries
amounting to RMB 95,299,883.34.
(III) Long-term equity investments
Ending balance Balance at the end of last year
Item Provision Provision
Book Book
for Book value for Book value
balance balance
impairment impairment
Investme
855,811,15 445,002,24 410,808,90 718,091,32 445,002,24 273,089,07
nts in
0.92 5.26 5.66 2.09 5.26 6.83
subsidiar
Notes to the Financial statements Page 89
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Ending balance Balance at the end of last year
Item Provision Provision
Book Book
for Book value for Book value
balance balance
impairment impairment
ies
Investme
nts in
associate 84,833,842. 84,833,842. 79,082,076. 79,082,076.
s and 74 74 44 44
joint
ventures
940,644,99 445,002,24 495,642,74 797,173,39 445,002,24 352,171,15
Total
3.66 5.26 8.40 8.53 5.26 3.27
1. Investments in subsidiaries
Provisio
Decrea
n for Ending
Increased sed
Balance at impairm balance of
amount in amount Ending
Investees the end of ent in provision
the current in the balance
last year the for
period current
current impairment
period
period
Shenzhen
Xiefu 26,650,000 26,650,000
Energy .00 .00
Co., Ltd.
Shennan
Energy 6,703,800. 6,703,800.
(Singapore 00 00
) Co., Ltd.
Shenzhen
New
71,270,000 104,367,76 175,637,76 13,709,556
Power
.00 3.02 3.02 .49
Industrial
Co., Ltd.
Shenzhen
Nanshan
Power 410,740,00 410,740,00 410,740,00
1.00
(Zhongsha 0.00 1.00 0.00
n) Power
Co., Ltd.
Shenzhen
Nanshan
Power Gas
Turbine
Engineerin 6,000,000. 18,460,360 24,460,360
g 00 .00 .00
Technolog
y
(Shenzhen
) Co., Ltd.
Shenzhen
Nanshan 55,300,000 14,891,704 70,191,704 20,552,688
Power .00 .81 .81 .77
Environme
Notes to the Financial statements Page 90
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Provisio
Decrea
n for Ending
Increased sed
Balance at impairm balance of
amount in amount Ending
Investees the end of ent in provision
the current in the balance
last year the for
period current
current impairment
period
period
ntal
Protection
(Shenzhen
) Co., Ltd.
Zhuhai
Hengqin
Zhuozhi
Investment 141,427,52 141,427,52
Partnershi 2.09 2.09
p (Limited
Partnershi
p)
718,091,32 137,719,82 855,811,15 445,002,24
Total
2.09 8.83 0.92 5.26
Notes to the Financial statements Page 91
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
2. Investments in associates and joint ventures
Increase and decrease in the current period
Ending
Ending Investment
balance
balance profit or
Balance at Addition Adjustments Other Declaratio Provision of
of Reduced loss Ending
Investees the end of al to the other chang n of cash for Other provision
provision investme recognized balance
last year investme comprehensi es in dividend impairme s for
for nt under the
nt ve income equity or profits nt impairme
impairme equity
nt
nt method
1.
Associates
Liaoyuan
Environmen 79,082,076. 6,966,316. 1,214,550. 84,833,842.
tal 44 30 00 74
Protection
79,082,076. 6,966,316. 1,214,550. 84,833,842.
Subtotal
44 30 00 74
79,082,076. 6,966,316. 1,214,550. 84,833,842.
Total
44 30 00 74
Notes to the Financial statements Page 92
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(IV) Operating revenue and operating costs
The current period amount Amount in previous period
Item
Revenue Cost Revenue Cost
Main business 264,690,176.35 357,865,804.80 331,675,472.61 454,500,441.17
Other business 126,959,772.74 5,823,727.52 91,408,429.32 63,394.30
Total 391,649,949.09 363,689,532.32 423,083,901.93 454,563,835.47
1. Break down by product or service type
The current period amount Amount in previous period
Item
Revenue Cost Revenue Cost
Power
production 391,340,842.07 363,617,073.55 422,521,038.95 454,563,835.47
and sale
Others 309,107.02 72,458.77 562,862.98
Total 391,649,949.09 363,689,532.32 423,083,901.93 454,563,835.47
2. By region
The current period amount Amount in previous period
Item
Revenue Cost Revenue Cost
Domestic 391,649,949.09 363,689,532.32 423,083,901.93 454,563,835.47
Total 391,649,949.09 363,689,532.32 423,083,901.93 454,563,835.47
3. Revenue broken down by time of transfer of goods or services
The current period Amount in previous
Item
amount period
Recognize revenue at a certain
391,649,949.09 423,083,901.93
time point
Total 391,649,949.09 423,083,901.93
(V) Investment income
The current Amount in
Item
period amount previous period
Income from long-term equity investments
accounted for equity method under the equity 6,966,316.30 6,208,396.44
method
Investment income from financial assets held for
18,538,064.54 57,851,532.85
trading during the holding period
Dividend income received from investments in
340,206.13 453,587.35
equity instruments during the holding period
Dividends from long-term equity investments 6,717,600.82 8,397,001.02
Notes to the Financial statements Page 93
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
The current Amount in
Item
period amount previous period
Total 32,562,187.79 72,910,517.66
XV. Supplementary information
(I) Statement of non-recurring gains and losses in the current period
Item Amount Remark
Profits and losses on disposal of non-current assets,
including write-offs of provision for asset impairment 1,878,391.11
that has been made
Government subsidies included in the current profits and
losses, except for those that are closely related to the
Company's normal business operations, comply with
44,431,212.00
national policies and regulations, are enjoyed according
to determined standards, and have a sustained impact on
the Company's profits and losses
Except for the effective hedging business related to the
Company's normal operating business, profits and losses
from changes in fair value of financial assets and
18,538,064.54
financial liabilities held by non-financial enterprises and
profits and losses arising from the disposal of financial
assets and financial liabilities
Fund occupation fees charged to non-financial
enterprises included in the current profits and losses
Profits and losses from entrusting others to invest or
manage assets
Profits and losses from external entrusted loans
Loss of assets due to force majeure, such as natural
disasters
Reversal of provision for impairment of receivables
1,235,154.68
individually tested for impairment
The investment cost in subsidiaries, associates and joint
ventures acquired by an enterprise is less than the gains
from the fair value of the identifiable net assets of the
investees that shall be enjoyed when acquiring the
investment
Current net profit and loss of subsidiaries from the
beginning of the period to the combination date arising
from business combination under the common control
Profits and losses on exchange of non-monetary assets
Profits and losses of debt restructuring
One-time expenses incurred by the enterprise due to the
fact that the relevant operating activities are no longer
sustainable, such as expenses for relocating employees,
etc.
One-time impact on current profits and losses due to
adjustments in laws and regulations such as taxation and
accounting, etc.
One-time confirmed share-based payments expenses due
to cancellation or modification of equity incentive plan
For cash-settled share-based payments, profits and losses
arising from fair value changes of employee
compensation payable after the vesting date
Profits and losses from fair value changes of investment
Notes to the Financial statements Page 94
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Item Amount Remark
properties that are subsequently measured by using the
fair value model
Gains arising from transactions at significantly unfair
transaction prices
Profit or loss arising from contingencies unrelated to the
Company's normal business operations
Revenue from custody fees obtained from entrusted
operations
Other non-operating revenue and expenses other than
11,628,630.83
those mentioned above
Other profit and loss items that meet the definition of
non-recurring gains and losses
Subtotal 77,711,453.16
Less: income tax impact
Changes in the amount of minority interests (after tax) 2,763,648.15
Total 74,947,805.01
(II) Return on equity and earnings per share
Weighted Earnings per share (RMB)
average rate
Profit during the reporting
of return on Basic earnings per Diluted earnings
period
net assets share per share
(%)
Net profit attributable to
ordinary shareholders of the 0.2854 0.0069 0.0069
Company
Net profit attributable to
ordinary shareholders of the
-4.8578 -0.1174 -0.1174
Company after deducting non-
recurring gains and losses
Shenzhen Nanshan Power Co., Ltd.
(Official seal)
April 10, 2024
Notes to the Financial statements Page 95
