SHENZHEN NANSHAN POWER CO., LTD
Semi-Annual Report 2010
Notice No.: 2010－045
August 17, 20101
Important Notice
The Board of Directors and its directors, Supervisory Committee and its supervisors, senior executives of
Shenzhen Nanshan Power Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are
no false recordation, misleading statements or material omissions carried in this report, and shall take all
responsibilities, individually and/or jointly, for the reality, accuracy and completeness of the whole
contents.
No director, supervisor and senior executive stated that he (she) couldn’t ensure the correctness, accuracy
and completeness of the contents of the Semi-annual Report or have objection to this report.
Deputy Chairman—Sun Yulin, Director—Yu Chunling and Independent Director—Wu Xiaolei absent the
Meeting due to business, and authorized Director – He Yingyi, Director – Huang Fuhan and Independent
Director – Yu Xiufeng to attend and vote on her/his behalf respectively.
The Semi-annual Financial Report 2010 of the Company has not been audited.
Chairman of the Board Mr. Yang Haixian, General Manager Mr. Fu Bo, CFO Mr. Lu Xiaoping and
Manager of Financial Department Mr. Huang Jian hereby confirm the truthfulness and completeness of
the Financial Report in the Semi-annual Report 2010.
This report has been prepared in Chinese and English version respectively. In the event of differences in
interpretation between the two versions, the Chinese report shall prevail.2
Content
I. Company Profile -------------------------------------------------------------------------4
II.Changes in Share Capital and Particulars about Shareholders----------------7
III. Particulars about Directors, Supervisors and Senior Executives------------9
IV. Report of the Board of Directors ---------------------------------------------------9
V. Significant Events----------------------------------------------------------------------12
VI. Financial Report (Un-audited) ----------------------------------------------------21
VII. Documents Available for Reference----------------------------------------------211
I. Company Profile
(I) Basic Information
1. Legal Name of the Company:
In Chinese: 深圳南山热电股份有限公司
In English: Shenzhen Nanshan Power Co., Ltd.
2. Legal Representative: Yang Haixian
3. Secretary of the Board: Hu Qin
Tel: (0755)26948888
Fax :( 0755)26003684
E-mail: investor@nspower.com.cn
Contact address: 16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, China.
4. Registered Address: No.2097 Yueliangwan Avenue, Nanshan District, Shenzhen, China.
Post Code: 518052
Office Address: 16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, China
Post Code: 518053
Website: http://www.nsrd.com.cn
E-mail: public@nspower.com.cn
5. Newspapers Designated for publishing notices: Securities Times ,China Securities Journal and Hong
Kong Comercial Daily.
Website desinated by China Securities Regulatory Committee for publishing semi-annual report:
http://www.cninfo.com.cn
Place Where the Semi-Annual Report is Prepared and Placed: Secretariat of the Board
6. Stock Exchange Listed with: Shenzhen Stock Exchange
Short Form of the Stock and Stock Code: Shen Nan Dian A 000037
Shen Nan Dian B 200037
7. Other Relevant Information:
Initial Registration Date: April 6, 1990
Initial Registration Address: Nanshan Jiaozui, Nanshan District, Shenzhen
Registration Address after the Change: No.2097Yueliangwan Avenue, Nanshan District, Shenzhen
Registration code of the enterprise business license: 440301501125497
Registration code of taxation: YSW Zi No. 440305930100069 (14)
Organization Code: 61881512－1
8. Definition
Company, the Company: Shenzhen Nanshan Power Co., Ltd.
Xiefu Company: Shenzhen Xiefu Fuel Suuply Co., Ltd. whose 50% shares held by the
Company;
New Power Company: Shenzhen New Power Industrial Co., Ltd. whose 100% equity
is held by the Company;
Singaporean Company: Shennandian (Singapore) Co., Ltd. whose 100% equity is held by the Company;2
Syndisome Company: HONG KONG SYNDISOME CO., LIMITED;
Shennandian Engineering Company: Shennandian Turbine Engineering Technology Co., Ltd. whose
100% equity is held by the Company;
Shennandian Zhongshan Co., Ltd.: Shennandian (Zhongshan) Electric Power Co., Ltd. whose 80% equity
is held by the Company;
Shennandian Dongguan Company: Shennandian (Dongguan) Weimei Electric Power Co., Ltd. Whose
70% equity is held by the Company;
Shennandian Envionment Protection Company: Shenzhen Shennandian Envionment Protection Co., Ltd.
Whose 100% equity is held by the Company;
Wanneng Tongling Company: Wanneng Tongling Power Generation Co., Ltd.Whose 2.83% equity is held
by the Company;
Shenzhen Energy Environmental Corporation: Shenzhen Energy Environmental Co., Ltd. Whose 10%
equity is held by the Company;
Nanshan Power Factory: Nanshan Power Factory who is the second degree institution of Shenzhen
Nanshan Power Co., Ltd.;
Zhongshan Nam Long Power Plant: Zhongshan Nam Long Power Plant of Shennandian (Zhongshan)
Electric Power Co., Ltd.;
Dongguan Gaobu Power Plant: Dongguan Gaobu Plant of Shennandian (Dongguan) Weimei Electric
Power Co., Ltd.;
Shenzhong Zhiye Company: refers to Shenzhen Zhongshan Real Estate Investment Properties Co., Ltd
whose 75% equity is held by the Company
Shenzhong Real Estate Company: Zhongshan Shenzhong Real Estate Investment Property Co., Ltd.
whose 75% equity is held by the Company;
Jiangxi Xinchang Company: China Power Investment Xinchang Power Generation Co., Ltd. of Jiangxi;
Jiangxi Pengze Nuclear Power Company: China Power Investment Jiangxi Nuclear Power Co., Ltd.
whose 5% equity is held by the Company;
CSRC: China Securities Regulatory Committee;
SZSRC: Shenzhen Supervision Municipal of China Securities Regulatory Committee;
SZSE: Shenzhen Stock Exchange;
Designated newspapers: Securities Times ,China Securities Journal and Hong Kong Comercial Daily;
RMB: Unless otherwise specified, the standard currency in the financial data or unit refers to Renminbi.
(II) Major Financial Data and Indexes
1. Major accounting data and financial indexes
Unit: RMB
At the end of this
report period
At the period-end
of last year
Increase/decrease at
the end of this report
period compared with
that in period-end of
last year (%)
Total assets 4,938,745,306.90 4,926,596,324.59 0.25%
Owners’ equity attributable to
shareholders of the listed company 1,592,214,140.62 1,847,287,676.40 -13.81%
Share capital 602,762,596.00 602,762,596.00 0.00%
Net assets per share attributable to
shareholders of the listed
company(RMB/Share)）
2.64 3.06 -13.81%3
This report period
(Jan. to Jun.)
The same period of
last year
Increase/decrease in
this report period
year-on-year (%)
Total operating income 702,859,674.61 878,653,990.33 -20.01%
Operating profit -442,321,305.40 -104,958,219.59 Decreased 337,360,000
Total profit -270,933,519.42 75,241,843.20 Decreased 346,170,000
Net profit attributable to shareholders
of the listed company -255,073,535.78 60,961,656.20 Decreased 316,030,000
Net profit attributable to shareholders
of the listed company after deducting
non-recurring gains and losses
-255,262,197.62 59,856,559.41 Decreased 315,120,000
Basic earnings per share (RMB/Share) -0.42 0.10
Decreased RMB0.52 per
share
Diluted earnings per share
(RMB/Share) Inapplicable Inapplicable -
Return on equity (%) -14.83% 3.32%
Decreased 18.32
percentage point
Net cash flow arising from operating
activities -67,342,242.23 23,093,133.77 Decreased 90,430,000
Net cash flow per share arising from
operating activities (RMB/Share) -0.11 0.04
Decreased RMB0.15per
share
2. Items of non-recurring gains and losses
Unit: RMB
Non-reccurring ganis or losses Amount
Gains and losses from disposal of non-current assets -1,840.00
Other non-operating income and expenditure beside for the
aforementioned items 250,055.79
Influenced amount of minority shareholders’ equity -59,553.95
Total 188,661.84
3. Appendix table of profit statement
Earnings per share（RMB）
Profit for the report period
Return on equity of weighted
average (%)
Basic earnings
per share
Diluted earnings
per share
Net profit attributable to
shareholders of ordinary
shares of the Company
-14.83% -0.42 Inapplicable
Net profit attributable to
shareholders of ordinary
shares of the Company
after deducting
non-recurring gains and
losses
-14.84% -0.42 Inapplicable
4. There is no asset depreciation occurred in the report period.
5. Difference under CAS and IAS
In the report period, there were no differences between net profit attributable to shareholders of listed4
company and the owners’ equities calculated based on CAS and IAS.
II. Change in Share Capital and Particulars about Shareholders
(I) Changes in share capital
1. Statement of changes in shares (Ended June 30, 2010) Unit: Share
Before the Changes Increase/Decrease in the Change (+, -) After the Changes
Content Amount Proporti
on (%)
Newly
-
issued
shares
Bonus
shares
Public
reserve
-conve
rted
shares
Others Subtot
al Amount
Proporti
on
（%）
I. Restricted shares 12,993 0.002 12,993 0.002
1. State-owned shares
2. State-owned legal
person’s shares
0 0
3. Other domestic
shares
Including: Domestic
non-state-owned legal
person’s shares
Domestic natural
person’s shares
4. Foreign shares
Including: Foreign
legal person’s shares
Foreign natural
person’s shares
5. Senior executives’
shares 12,993 0.002 12,993 0.002
II. Unrestricted shares 602,749,603 99.998 602,749,603 99.998
1. RMB Ordinary
shares 338,895,157 56.224 338,895,157 56.224
2. Domestically listed
foreign shares 263,854,446 43.774 263,854,446 43.774
3. Overseas listed
foreign shares
4. Others
III. Total shares 602,762,596 100 602,762,596 100
[Note] No change on total share amount or share capital structure occurred during the report period.
(II) Particulars on shares held by top ten shareholders and top ten shareholders with unrestricted
conditions
Ended by the report period, the Company had totally 50,558 shareholders, of them, 33,329 shareholders
of A-share, and 17,229 shareholders of B-share.5
Unit: Share
Total amount of shareholders at
the end of report 50,558
Particulars about the shares held by the top ten shareholders
Full Name of shareholder
Nature of
shareholde
rs
Proportio
n of
shares
held
Total
amount of
shares held
Amount of the
restricted
shares held
Amount of
shares
pledged or
frozen
SHENZHEN GUANGJU
INVESTMENT CO., LTD
State-own
ed legal
person
18.61% 112,185,584 0 0
HONG KONG NAM HOI
(INTERNATIONAL) LIMITED
Foreign
legal
person
15.28% 92,123,248 0 0
SHENZHEN ENERGY (GROUP)
CO., LTD.
State-own
ed legal
person
10.80% 65,106,130 0 0
BNP P P/PAND INVESTMENT CO.,
LTD.
Foreign
legal
person
8.20% 49,426,518 0 0
STATE GRID SHENZHEN
ENERGY DEVELOPMENT
(GROUP) CO., LTD.
State-own
ed legal
person
5.97% 35,999,805 0 0
YAN TIAN GONG
Domestic
natural
person
0.55% 3,320,000 0
Unknown
Zhongshan Changli Real Estate
Development Co., Ltd Unknown 0.29% 1,770,000 0Unknown
Jinbang Security Holding Co., Ltd
Foreign
legal
person
0.25% 1,500,000 0
Unknown
NAITO SECURITIES CO., LTD.
Foreign
legal
person
0.24% 1,426,115 0
Unknown
YANG SHI MIN
Domestic
natural
person
0.23% 1,400,110 0
Unknown
Particulars about the shares held by the top ten unrestricted shareholders
Full Name of shareholder Amount of unrestricted shares
held Type of shares
SHENZHEN GUANGJU
INVESTMENT CO., LTD 112,185,584 RMB ordinary share
HONG KONG NAM HOI
(INTERNATIONAL) LIMITED 92,123,248 Domestically listed
foreign share
SHENZHEN ENERGY (GROUP)
CO., LTD. 65,106,130 RMB ordinary share
BNP P P/PAND INVESTMENT CO., 49,426,518 Domestically listed6
LTD foreign share
STATE GRID SHENZHEN
ENERGY DEVELOPMENT
(GROUP) CO., LTD.
35,999,805 RMB ordinary share
YAN TIAN GONG 3,320,000 Domestically listed
foreign share
Zhongshan Changli Real Estate
Development Co., Ltd 1,770,000 RMB ordinary share
Jinbang Security Holding Co., Ltd 1,500,000 Domestically listed
foreign share
NAITO SECURITIES CO., LTD. 1,426,115 Domestically listed
foreign share
YANG SHI MIN 1,400,110 Domestically listed
foreign share
Explanation on associated
relationship among the top ten
shareholders or consistent action
1. Shenzhen Energy (Group) Co., Ltd. holds indirectly
100% equities of Hong Kong Nam Hoi (International)
Limited;
2. Among other social public shareholders, the Company
did not know whether there were associated relationships or
belonging to consistent actors.
(III) Particulars about the changes on controlling stockholders and the actual controller
The Company has no controlling shareholder and actual controller, and this situation remains unchanged
in the report period.
III. Particulars about Directors, Supervisors and Senior
Executives
(I) Particulars about changes of shares held by directors, supervisors and senior executives
There were no changes of shares held by directors, supervisors and senior executives of the Company.
(II) Changes of directors, supervisors and senior executives in the report period.
There were no changes of directors, supervisors and senior executives in the report period.
IV. Report of the Board of Directors
(I) Discussion and analysis on operational situation of the Company in the report
Period
In the first half year of 2010, national economy takes on a good momentum of steady recovery. Along
with the further warming of the economy of Guangdong Province, demand in power supply continually
increase. From January to June, power generated by the whole province accumulated to 143.813 billion
kwh, 25.63% up over the same period of last year; the total power used by Guangdong province for social
purpose reached 186.686 billion kwh, 18.43% up over the same period of last year. Despite increase in
power generated by the whole province and power used by the whole society during the first half year,
influenced by the rising pressure from environment protection, the supply uncertainty and running-high
price of natural gas, unit overhaul of the affiliated Zhongshan Nanlang Power Plant, LNG technology7
reformation and other disadvantageous factors, total amount of power generated by all plants of the
Company did not increase in line with power demand. During the report period, power generated by
plants of the Company totaled 1.197 billion kwh , 21.04% down over the same last period.
Confronted with severe market environment and operational dilemma, the Company persistently carries
forward the operational idea of “striving for survival and going through difficulties”, conforms to trend of
readjusting policies for national energy industry and changing economic growth manner and proactively
pushes forward the recycle economy project and industrial structure adjustment. During the report period,
the drying- up sludge project of Nanshan Thermal Power Plant affiliated to the Company entered into trial
operation stage; demonstrative project of combing supply of cold and heat power was put into
commercial operation officially, range of mobile heat-supply was enlarged and “gas-for-fuel”
technological reformation was completed in a full scale, and the plant was listed as long-term user of
Second Line Project of “West-to-East Gas Transportation”. Successful implementation of the aforesaid
projects not only improves order of the generating units in energy-saving allocation, but propels the plant
to switch from an enterprise with single grid load regulation purpose to one with overall energy- cascade
utilization purpose, equipping the existing electrical assets with long surviving conditions.
At the beginning of this year, newly-constructed project of “adopting high-power generating units and
shutting low-power units” of Jiangxi Xinchang Company whose 30% share is held by the Company,
namely, two sets of ultra supercritical 600MW units were completed and put into commercial operation.
At the same time, the Company further deepened its cooperation with China Power Investment
Corporation and made a successful march forwards domestic nuclear- electricity construction field, laying
down a good foundation for the long-term and sustainable developmental pattern of the Company.
(II) Corporate Operation during the Report Period
During the report period, the Company accumulatively realized operating income of RMB702,859,700.00,
20.01% down over the same period of last year, among which, RMB701,624,200.00 was realized by
power and steam production and supply and project contracted construction, 20.01%down over the same
period of last year; RMB 1,235,500.00was realized by other industries, 47.47% up over the same period
of last year; Since the fuel cost has increased, main business profit realized by power, steam and project
contracted construction amounted to RMB-301,089,200.00, decreased RMB 318,307,000.00 over the
same period of last year, other industries realized profit RMB 699,500.00 in main business, 181.94% up
over the same period of last year; net profit attributable to owners of the parent company amounted to
RMB -255,073,500.00, decrease RMB 316,035,200.00 over the same period of last year; earnings per
share reached RMB-0.42 per share.
1. Statement of main operations classified according to industries and products
Unit: RMB’0000
Classified
according
to
industries
or products
Operating
revenue
Operating
cost
Gross
profit
ratio (%)
Increase or
decrease of
operating
revenue over
the last same
period of last
year (%)
Increase or
decrease of
operating
cost over
the last
same period
of last year
(%)
Increase or
decrease of
gross profit ratio
over the last
same period of
last year (%)
Power
production 69,071.13 99,366.89 -43.86% -20.75% 16.75% -37.50%
Steam
production 499.19 666.67 -33.55% 13.90% 4.03% 9.87%
Engineering 592.10 237.78 59.84% 211.47% -23.44% 234.91%8
contract
Others 123.55 53.60 56.62% 47.47% -9.11% 56.58%
2. Statement of main operations classified according to areas
Unit: RMB ‘0000
Areas Income from operations
Increase/decrease in income
from operations over the
same period of last year (%)
Shenzhen 47,323.02 -7.01%
Zhongshan 584.48 -96.42%
Dongguan 22,378.47 8.29%
3. In the report period, the profit composition, main operation and its structure of the Company did not
have significant change over the same period of last year.
4. Reason for significant change happened to the gross profit ratio of the report period over the same
period of last year: great increase in fuel cost.
5. During the report period, accounted by equity method, share-jointed company of the
Company—Jiangxi Xinchang Company suffers investment losses of RMB32.2319 million with impact on
net profit of the Company reaching12.64%.
(III) Investment in the report period
1. Application of raised proceeds
In the report period, the Company neither raised proceeds, nor had proceeds raised in former periods but
extended to use in the report period.
2. Investment of non-raised proceeds
(1) Cycle economy project
1.The drying -up sludge project: ever since 2008, the project has been assessed as significant construction
project of Shenzhen for successive three years and both dynamic and static debug has been conducted on
its four sludge-drying disposal lines in succession since November of last year. Ended by June, 30, the
project had accumulatively disposed about 2900 ton of wet sludge and utilized about 900 ton of dry
sludge. Relevant municipal departments have approved the project’s entry into trail operation.
2. Combined supply of cold and heat power project: the project was reckoned as key construction project
of Shezhen in 2009 and key prophase project of Shenzhen in 2010. During the report period, the
Company add RMB 0.7167 million to the investment and till the end of the report period, the Company
accumulatively funded RMB 8.1888million. The Company signed cooling supply contract with Shenzhen
Longshan Environment Protection Co., Ltd, which is its first out-factory user in February of 2010, and
began to supply concentrated cooling from the middle May. On July, 8, demonstration project of
combining supply of cold and heat power entered into commercial operation.
During the report period, according to the requirement proposed by the 25th Meeting of 5th Board of
Directors, the Company carried out active prophase research on implementing combined supply of cold
and heat power project in Qianhai Development Zone and finished composition of Proposals, and in the
meanwhile, intended to conducted research on feasibility of project planning with programming and
designing organs of Shenzhen and discussed program of implementing energy overall utilization in
downtown of Qianhai with potential cooperative partners.9
(2) Project in Xinchang ,Jiangxi Province
In the report period, the Company added RMB 23.1429 million in its investment in company in
Xinchang ,Jiangxi Province and till the end of the period, the Company accumulatively invested RMB
219.4286 million. Two sets of ultra supercritical 600MW units in the newly-constructed project of
“adopting high-power generating units and shutting low-power units” of the company respectively passed
performance test of working with full load for 168 hours on December 14, 2009 and February 14, 2010
and entered into commercial operation officially.
During the report period, the company shifted its working focus from engineering construction to
production and operation management, realized power generation of 2.026 billion kwh and safe operation
of successive 198 days. However, due to the low amount of power generated by the units and high cost of
fuel, the company suffered loss of RMB 107.4396 million in the first half year, that is, loss of
RMB32.2319 million was incurred in investment of this period if calculated in 30% equity accounting
method.
(3) Nuclear Power Project in PengZe, Jiangxi Province
On January 15, 2010, China Power Investment Group, Jiangxi Ganneng Co., Ltd and the Company jointly
signed Agreement about China Power Investment Group’s Share Equity in Jiangxi Nuclear Power Co.,
Ltd and decided to establish new project company—Jiangxi Pengze Nuclear Power Co., Ltd in which the
Company will hold 5% share. The investment for the first phase of the project amounted to RMB 35
billion while capital amount totaled RMB 7 billion, and according to the investing proportion of 5%, the
Company is expected to invest RMB 347.85 million; Initial registration capital of the first phase of the
project is RMB 727.27 million. During the report period, the Company invested RMB 37.315million. Up
to now, land acquisition, relocation, smoothing of the land, “two appraisals” and other important prophase
works has been finished and the project is pressing with approval procedures.
(IV) Speical explanations by the Board of Directors on the matters involved in non-standard qualified
opinion issued by CPAs.
In 2009, Deloitte Huayong CPAs Co., Ltd. issued qualified auditor’s report with paragraph of emphasized
matters for the Company. During the report period, the matters involved in non-standard qualified opinion
has not any progress (for details, refer to the notice dated April 13, 2010 with Notice No. 2010－011).
V. Significant Events
(I) Administration of the Company
In the report period, the Company operated in law and standardized its operation continuously in
accordance to Company Law, Securities Law, and Governing Principle for listed Companies, and Opinion
on Improving Quality of Listed Companies, Management Method on Information Disclosure of Listed
Company as well as Listing Rules for Stock in Shenzhen Stock Exchange. The actual corporate
management structure basically accorded with the regulations of relevant standard documents on
administration of listed company issued by CSRC. During the report period, shareholders, Shareholders’
General Meeting, directors and Board of Directors, supervisors and Supervisory Committee all operates
in conformity with laws and ensured the lawful interest of the Company, shareholders especially medium
and small shareholders.
In April of 2010, pursuant to requirements in Notice of Requiring the Establishment of Responsibility
Accountability System for Major Error in Annual Report Information Disclosure of Listed Companies,
the 30th Meeting of the 5th Board of Directors approved Responsibility Accountability System for Major10
Error in Annual Report Information Disclosure and strictly enforced the system hereafter.
In May of 2010, Pursuant to requirements in On Full-scale and Profound Implementation of Special
Campaign of Standardizing Basic Financial Accounting Works in Listed Companies of Shenzhen, the
Company established special team aimed at standardizing basic routines of financial account, worked out
plan for carrying out the campaign, conducted self –inspection and self-correction on allocation of
financial personnel and departments, basic works of accountant accounting , capital management, taxation
management, development and enforcement of financial management system and set up of financial
information system and its application, and formed report of self-inspection particulars. At present,
The Company is putting correction into action in accordance to corrective scheme.
(II) Profit distribution plan and its execution
There was no profit distribution plan, plan on public reserve conversion into shares or new share issuing
plan implemented in the report period which was drawn in the past.
There was no profit distribution preplan or plan on public reserve conversion into shares or equity
incentive proceeding in the report period.
(III) Significant lawsuit or arbitration
The Company had not involved in any significant lawsuit or arbitration during the report period.
(IV) Investment in securities
During the report period, the Company neither held equity in other listed companies or in financial
enterprises such as joint commercial banks, securities companies, insurance companies, trusted
companies and futures companies nor joint in companies intended to go listing.
(V) Significant purchase and sale of assets and enterprise combination in the report period
1. Listed to transfer 2.83% equity of Tongling Power Generation Co., Ltd. of Anhui Energy Group
On March 25, 2010, the 29th Meeting of the 5th Board of Director approved Proposal on Transferring
2.83% Equity of Tongling Power Generation Co., Ltd. of Anhui Energy Group which assents to take the
evaluated assets value as the bottom price and transfer the company’s holding of 2.83% equity of
Tongling Power Generation Co., Ltd. of Anhui Energy Group by listing in stock exchange. (Details can
be seen in notice of March 31, 2010, Notice No. 2010-006)
The Company listed in Shenzhen Property Ownership Exchange Center to transfer the above mentioned
equity on April 21, 2010 at a listing price of RMB 34.7782 million. Huainan Minerals (Group) limited
which originally held 25.54% equity of Tongling Power Generation Co., Ltd. of Anhui Energy Group and
had no relationship with the Company applied to Shenzhen Property Ownership Exchange Center for
bidding for equity sold on May 19, 2010 as an applier for bid. As there was only one potential buyer till
the listing expired, two transaction parties could transfer relevant equity in the manner of contract in
accordance to relevant regulations. On May 22, 2010, the Company signed Equity Transfer Contract with
Huainan Minerals (Group) Limited at a transferring price of RMB 34.7782 million. On June30, Shenzhen
Union Property Ownership Exchange Center verified that this transaction was conforming to legal
procedures. On July 5, 2010, the Company received a lump sum of RMB 34.7782 million.
2. Transfer of Capacity of #7 and #9 Units of Nanshan Thermal Power Plant
On May 5, 2010, Shareholders’ General Meeting 2009 approved Proposal on Closing the #7 and #9 Units
of Affiliated Nanshan Thermal Power Plant and Transferring Capacity of the Units to Shenzhen Energy
(Group) Co., Ltd which agrees to transfer the closed capacity of #7 and #9 units, amounting to 0.1734
million kwh, to Shenzhen Energy Group Co., Ltd (hereinafter referred to as “Shenzhen Energy” ) at the11
price of RMB 260 per kw, with transaction value totaled RMB 45.084 million.( Details could be seen on
notice of December 3, 2009, notice No. 2009-067; notice of April 14, 2010, notice No. 2010-014;
notice of May 6, 2010, notice No. 2010-027)
3. Capacity Compensation for Originally Closed Units Involving Zhongshan Shenzhong Real Estate
Investment Co., Ltd. and Zhongshan Shenzhong Real Estate Development Co., Ltd.
In November of 2008, Development and Reform Bureau of Zhongshan unveiled Compensation Plan for
Zhongshan Hengmen Power Plant’s Replacing the Closed Coal Electricity Units by Project of Adopting
High-power Units While Closing Low-power Units. According the aforesaid compensatory plan, the
closed capacity replaced by the project of adopting high-power units while closing the low-power ones
shall be compensated with the standard of RMB 100 per kwh( include tax), and Zhongshan Shenzhong
Real Estate Investment Co., Ltd. and Zhongshan Shenzhong Real Estate Development Co., Ltd. affiliated
to the Company shall obtain compensation totaled 25.6737 million. On June 30, 2010, the 34th Meeting of
the 5th Board approved relevant resolutions (See details on notice dated July 3, 2010, Notice No.
2010-034). Currently, relevant compensatory agreement is still under conclusion.
4. Transfer 10% equity of Shenzhen Energy Environment Protection Co., Ltd. by agreement
On May 4, 2010, Shenzhen Energy (Security Code: 000027) release Notice of Related Transaction
(Notice No. 2010-020) in which the Board approved transferring the Company’ holding of 10% equity of
Shenzhen Energy Environment Protection Company by contract. According to relevant regulations, the
Company issued Suggestive Notice on Related Transaction of Planning to Transfer 10% Equity of
Shenzhen Energy Environment Protection Co., Ltd. by Agreement (see details on notice dated May 5,
2010 with notice No. 2010-026). Within the validity period of asset appraisal results involved in the
equity, the Company failed to reach agreement with Shenzhen Energy on equity transfer issue, so at
present this part of equity has no conditions for transferring.
(VI) Significant related transaction
1. Related transaction related to daily operation
(1) During the report period, daily related transaction occurred in the Company were as follows:
Unit: RMB’0000
Related party
Type of
related
transaction
Description of
related
transaction
Pricing approach
and
decision-making
procedure for
related
transaction
Occurred
amount
from
January of
2010 to
June of
2010
Proportion to
transactions of
the same type
Shenzhen Moon
Bay Oil Port Co.,
Ltd.
Lease Rent wharf Priced by market 87.67 100%
Shenzhen Manwan
Power Co., Ltd. Lease
Rent oil
transportation
pipe
Priced by market 23.22 100%
(2) Purchase inventory fuel oil of Shenzhen Mawan Power Co., Ltd.
On January 29 of 2010, the Company received bid –inviting letter for stock of 5.37213 thousand ton of12
fuel oil in Moon Bay Combustion Engine Power Plant affiliated to Shenzhen Mawan Power Co., Ltd.
(hereinafter referred to as “Manwan Power”). In order to guarantee fuel needed by normal production and
operation, the Company consulted fuel oil price in the current domestic and Singapore international
markets and took part in bidding at a price of RMB 4600 per ton on February 2nd, and received
tender-wining notification from Mawan Power on February 5th. On March 25, 2010, the 29th Meeting of
5th Board of Directors approved relevant proposal.( Details could be seen on notice of March 31, 2010,
notice No. 2010-007). Delivery of the transaction target has been made and the transaction amount of
RMB 24.7346 million has been paid and settled.
2. Related transaction incurred by purchase or sales of assets during the report period
Details could be seen in “V. Significant events: (V) Significant purchase and sale of assets and enterprise
combination: 2. Transfer of capacity of #7 and #9 units in Nanshan Thermal Power Plant and 4. Transfer
10% of Shenzhen Energy Environment-Protection Co., Ltd. by agreement.”
3. Current related liabilities and debts
Unit: RMB
Funds offered to related parties by
listed company
Funds offer to listed company by
Related parties related parties
Occurred amount Balance Occurred amount Balance
Xiefu Company - 6,279,664.17 -2,455,253.22 2,410,292.43
Shennandian
(Zhongshan) Power
Co., Ltd. 239,214,264.87 508,629,723.58 - -
Shenzhong Real
Estate Development
Co., Ltd. 10,918,413.30 677,004,186.72 - -
Shennandian
Engineering
Company - - -1,847,625.23 -
Shennandian
(Dongguan)
Company -110,741,527.27 53,318,668.57 - -
New Power
Company - 597,875,904.41 -25,888,323.20 308,381,404.30
Shennandian
Environment
Company -366,631.30 - 1,135,838.47 1,135,838.47
Shenzhen Energy
Group Co., Ltd. - - -1,158.78 510,249.91
Syndisome
Company - - -8,277.48 1,813,776.55
Singapore Company - 31,072.34 - -
Mawan Power
Company - - -49,171.39 -
Moon Bay Oil
Company - - - -
Total 139,024,519.60 1,843,139,219.79 -29,113,970.83 314,251,561.6613
(VII) Significant contracts of the Company and its implementation
1. During the report period, except that Shenzhen New Power Industrial Co., Ltd. continues to entrust the
Company to manage and operate the assets of project of power generating with waste heat, the Company
has not trusted, contracted and leased other companies’ assets nor has other companies trusted, contracted
and leased asset of listed company.
2. There is no other material contract in the report period.
3. During the report period, the Company has not entrusted others to manage cash assets.
(VIII) Significant guarantee
Unit: RMB’0000
Particulars about the external guarantee of the Company (Barring the guarantee for the controlling
subsidiaries)
Name of the
Company
guaranteed
Related
Announcem
ent
disclosure
day and
Announcem
ent No.
Maximum
guarantee
amount
Date of
happening
(Date of
signing
agreement)
Actual
amount of
guarantee
Guarantee
type
Guarant
ee term
Complet
e
Implem
entation
or not
Guarantee for
related party
(Yes or no)
Shennandian
(Zhongshan)
Company
09.4.9(2009
-014)/09.4.3
0(2009-018)
15,000 2010.03.26 5,000
Maximum
Amount
Guarantee
1 year No Yes
Shennandian
(Dongguan)
Company
09.4.9(2009
-014)/09.4.3
0(2009-018)
12,020 2009.04.01 12,020
Maximum
Amount
Guarantee
1 year No Yes
（A1）Total maximum amount
of external guarantees to
approve during the report period
15,000
（A2）
Total actual amount of
external guarantee during
the report period
15,000
Total maximum amount of
external guarantees approved at
the end of the report period（A3）
27,020
Total actual balance of
external guarantee at the
end of the report period
（A4）
17,020
Particulars about the Guarantee of the Company for Subsidiaries
Name of the
Company
guaranteed
Related
Announcem
ent
disclosure
day and
Announcem
ent No.
Maximu
m
guarantee
amount
Date of
happening
(Date of
signing
agreement)
Actual
amount
of
guarant
ee
Guarantee type Guarant
ee term
Compl
ete
Imple
mentati
on or
not
Guarantee for
related party
(Yes or no)
Shennandian
(Zhongshan)
Company
09.4.9(2009
-014)/09.4.3
0(2009-018)
10,000 2009.06.04 10,000
Maximum
amount
guarantee
1 year No Yes
Shennandian
(Zhongshan)
09.4.9(2009
-014)/09.4.3 7,500 2009.03.27 7,500 Maximum
amount 1 year No Yes14
Company 0(2009-018) guarantee
Shennandian
(Dongguan)
Company
09.4.9(2009
-014)/09.4.3
0(2009-018)
30,000 2009.08.03 30,000
Maximum
amount
guarantee
1 year No Yes
Shennandian
(Dongguan)
Company
09.4.9(2009
-014)/09.4.3
0(2009-018)
10,000 2009.06.10 10,000
Maximum
amount
guarantee
1 year No Yes
Shennandian
(Dongguan)
Company
09.4.9(2009
-014)/09.4.3
0(2009-018)
8,000 2010.01.15 8,000
Maximum
amount
guarantee
1 year No Yes
Shennandian
Environment
Protection Co.,
Ltd.
09.4.9(2009
-014)/09.4.3
0(2009-018)
1,000 2009.06.09 1,000
Maximum
amount
guarantee 1 year No Yes
Shennandian
Environment
Protection Co.,
Ltd.
09.4.9(2009
-014)/09.4.3
0(2009-018)
8,000 2009.11.06 4,600
Maximum
amount
guarantee 1 year No Yes
Shennandian
Environment
Protection Co.,
Ltd.
09.4.9(2009
-014)/09.4.3
0(2009-018)
3,000 2010.03.30 1,000
Maximum
amount
guarantee 1 year No Yes
Total maximum amount of
guarantees for subsidiaries to
approve during the report period
（B1）
11,000
Total actual amount of
guarantee for subsidiaries
during the report period
（B2）
9,000
Total maximum amount of
guarantees for subsidiaries
approved at the end of the report
period（B3）
77,500
Total actual balance of
guarantee for subsidiaries
at the end of the report
period（B4）
72,100
Total amount of guarantee of the Company (Total amount of the aforesaid two items)
Total maximum amount of
guarantees to approve during the
report period（A1+B1）
26,000
Total actual amount of
guarantee in the report
period（A2+B2）
24,000
Total maximum amount of
guarantee approved at the end of
report period（A3+B3）
104,520
Total actual balance of
guarantee at the end of
the report period
（A4+B4）
89,120
The proportion of the total amount of guarantee in the net
assets of the Company（A4+B4） 55.97%
Including:
Amount of guarantee for shareholders, actual controller and
its related parties（C） 0
The debts guarantee amount provided for the guarantee of
which the assets-liability ratio exceeded 70% directly or
indirectly（D）
32,50015
Proportion of total amount of guarantee in net assets of the
Company exceeded 50%（E） 12,156
Total amount of the aforesaid three guarantees（C+D+E） 44,656
Explanation for possible joint liquidation responsibility for
undue guarantee Naught
(IX) Special explanation and independent opinion issued by independent directors on capital occupancy
and external guarantee of related parties of the Company
According to ZJF No. 56 Notice (2003) on Standardizing Capital Current between Listed Company and
Related Parties and External Guarantee of Listed Company, SZJFZ No. 338 Notice (2004) on
Strengthening Capital Occupancy of Listed Company and Out-of-line Guarantee Information Disclosure
as well as ZJF No. 120 Notice (2005) on Standardizing External Guarantee of Listed Company, and with
knowledge and data inquiry of the Company, we issued the following special explanation and opinion for
the current capital occupancy and external guarantee of related parties of the Company:
Until June 30, 2010, the current capital between the Company and its controlling shareholders,
subsidiaries and other related parties all belong to normal non-operating current capital, and no related
parties occupy the Company’s capital out of line.
Until June 30, 2010, the balance of external guarantee of the Company amounts to RMB 1,045,200,000
(belong to loan guarantee provided by the Company for its controlling subsidiaries and guarantee
provided by controlling subsidiaries for other controlling subsidiaries). The Company and its controlling
subsidiaries have not provided guarantee for its shareholders, other related parties, any non-legal unit or
individual; earnestly implemented its obligation for disclosing information of external guarantee.
(X) Implementation of commitment issued by shareholders holding above 5% equity (include 5%) of
Company
During the report period, the shareholders holding more than 5% (5% included) shares of the Company
have not made commitment or previous commitment but lasting till the report period which brought
significant influence to the Company’s operation achievement and financial status.
(XI) Reception for investigation, communication and interview
During the report period, no reception for investigation, communication and interview occurred.
(XII) During the report period, no director, supervisor, senior executive, shareholder, actual controller and
the Company has received investigation from CSRC, administrative punishment and public criticize from
CSRC, punishment from other administrative department, public blame and justice compulsive measure
from stock exchange.
(XIII) Index for the information of the Company
The designated newspapers for information disclosure are China Securities Journal, Securities Times, and
Hong Kong Commercial Daily(During the report period, Hong Kong Wen Wei Po was the designated
overseas newspaper for information disclosure before May 13th,and the website is Juchao Information
Website (http://www.cninfo.com.cn).
Date Content
Name and page of
publishing press
2010.1.16 Notice on proposal of 2010 the first
Extraordinary General Meeting
Securities Times Page B5,
China Securities Journal
Page C009, Hong Kong16
Wen Wei Po Page B3
2010.1.30 2009 Notice on Performance Forecast
Securities Times Page
B16,
China Securities Journal
Page C004, Hong Kong
Wen Wei Po Page B5
2010.2.26 Notice on Clarification
Securities Times Page
D24,
China Securities Journal
Page D004, Hong Kong
Wen Wei Po Page B6
2010.3.31
Notice on proposal of the 29th meeting of
the 5thBoard of Directors; Notice on
proposal of the 23rd meeting of the 5th
Board of Supervisors; Notice on Listing
and Transferring the holding 2.83% equity
of Wanneng Tongling Power Co., Ltd.;
Notice on related transaction of Shenzhen
Mawan Power Co., Ltd. Purchasing
inventory fuel oil
Securities Times Page D4,
China Securities Journal
Page A12, Hong Kong
Wen Wei Po Page B3
2010.4.13
Notice on Proposal of the 30th meeting of
the5thBoard of Directors; Notice on
proposal of 24th meeting of the 5th Board
of Supervisors; Summary of 2009 Annual
Report（Chinese and English）
Securities Times Page
D35-36,
China Securities Journal
Page D019-020, Hong
Kong Wen Wei Po Page
A26-27
2010.4.14
Supplementary Notice on related
transaction That shut up subsidiary #7 and
#9 Unit capacity of Nanshan Heat Electric
Factory and transfer them to Shenzhen
Energy Group Co., Ltd.; Notice on
holding 2009 annual general shareholders’
meeting; Notice on 2010 bank credit
scale, Guarantee amount to holding
subsidiaries and Authority for bank loan
amount entrusted by internal capital
Securities Times Page C8,
China Securities Journal
Page A16, Hong Kong
Wen Wei Po Page A27
2010.4.21 Notice of Performance Forecast for the
First Quarter of 2010
Securities Times Page D9,
China Securities Journal
Page D004, Hong Kong
Wen Wei Po Page B4
2010.4.22 Supplementary Notice for 2009 Annual
Report
Securities Times Page D9,
China Securities Journal
Page D004, Hong Kong
Wen Wei Po Page A41
2010.4.24 Notice on the 32nd meeting of the 5th
Board of Directors;
Securities Times Page
B53,17
Notice on the 25th meeting of the 5th
Board of Supervisors;
Notice on 2010 the second shareholders’
general meeting;
Text of 2010 the first season report
(Chinese and English)
China Securities Journal
Page C021, Hong Kong
Wen Wei Po Page B8
2010.5.5
Referred Notice on related transaction of
planning to discuss and transfer 10%
shares of Shenzhen Energy Environmental
Protection Co., Ltd.
Securities Times Page D8,
China Securities Journal
Page B008, Hong Kong
Wen Wei Po Page B4
2010.5.6 Notice of Resolutions of
Shareholders’Genearal Meeting 2009
Securities Times Page D5,
China Securities Journal
Page B005, Hong Kong
Wen Wei Po Page B8
2010.5.10 Notice of Abnormal Flotation of Stock
Exchange
Securities Times Page C5,
China Securities Journal
Page B001, Hong Kong
Wen Wei Po Page A44
2010.5.13
Notice on proposal of the 2nd
shareholders’ general meeting;
Notice on changing overseas press of
information disclosure
Securities Times Page
B12,
China Securities Journal
Page B004, Hong Kong
Wen Wei Po Page B5,
Hong Kong Commercial
Daily Page A18
2010.7.3
Notice on the 34th meeting of the 5th
Board of Directors;
Notice on proposal of the 27th meeting of
the 5th Board of supervisors;
Notice on holding the 3rd shareholders’
general meeting;
Notice on that compensation to previous
closed unit capacity of Shenzhen
Zhongshan Real Estate Investment
Properties Limited and Zhongshan
Shenzhong Real Estate Development Co.,
Ltd.
Notice on disposal of Land Garden
property and partial transport vehicle of
Shenzhen Xie Fu Fuel Supply Co., Ltd.;
Notice on offering guarantee for loan of
Shennan Electric (Zhongshan) Electric
Power Co., Ltd.;
Notice on that Shennan Electric
Securities Times Page
B10,
China Securities Journal
Page B008, Hong Kong
Commercial Daily Page
A718
(Zhongshan) Electric Power Co., Ltd.
Offered guarantee for loan of Shennan
Electric (Dongguan) Aesthetic Electric
Co., Ltd.
VI. Financial Report (Un-audited)
The 2010 Semi-annual Financial Report is un-audited (attached).
VII. Documents Available for Reference
(I) Semi-annual Report of 2010 carried with the personnel signature of Legal Representative;
(II) Accounting Statements carried with the signature and seals of the Legal Representative, General
Manager and C.F.O.;
(III) All the originals of the Company’s documents and public notices disclosed in Securities Times,
China Securities Journal, Hong Kong Wen Wei Po and Hong Kong Commercial Daily in the report
period;
(IV) Place for inspection: Secretariat to the Board of Director of the Company.
Board of Directors of
Shenzhen Nanshan Power Co., Ltd.
August 17, 201019
Shenzhen Nanshan Power Co., Ltd.
Semi-Annual Financial Report of 2010
Consolidated Balance Sheet
Unit: RMB
Assets 30 Jan.2010 31 Dec.2009
Liabilities and owner’s
equity 30 Jan.2010 31 Dec.2009
Current assets： Current liabilities：
Monetary fund 405,071,002.22 379,162,100.63 Short-term loan 2,772,000,000.00 2,419,120,000.00
Bill receivable - 200,000.00 Bill payable - 68,210,216.75
Account receivable 358,378,314.93 339,735,079.02 Account payable 179,143,445.47 20,945,942.55
Account paid in
advance 5,255,173.57 4,419,870.02 Account received in
advance 1,692,125.87 589,000.00
Interest receivable - - Remuneration payable 46,287,315.68 45,213,658.24
Dividend receivable - - Tax payable -445,741,405.40 -400,141,494.43
Other accounts
receivable 16,090,162.17 12,135,292.96 Interest payable 2,592,874.75 3,121,564.50
Inventory 1,343,849,555.25 1,344,705,190.19 Dividend payable - -
Long-term stock
investment due within
one year
- -
Other account payables
337,150,217.53 353,795,654.34
Other current assets - - Long-term liabilities due
within one year - 200,000,000.00
Other current liabilities - -
Total of current assets 2,128,644,208.14 2,080,357,532.82 Total of current
liabilities
2,893,124,573.90 2,710,854,541.95
Non-current assets： Non-current liabilities
Long-term stock
investment 290,980,119.13 262,754,150.41 Long-term borrowing 256,000,000.00 156,000,000.00
Investment real estate 8,211,777.69 8,550,910.89 Other non-current
liabilities 5,350,000.00 3,850,000.00
Capital assets 2,197,260,370.25 2,286,167,921.21 Total of non-current
liabilities 261,350,000.00 159,850,000.00
Project under
construction 236,015,202.35 203,626,585.32 Total of liabilities 3,154,474,573.90 2,870,704,541.95
Disposal of capital
assets -141,748.73 5,875,631.20 Owners’ equity
Intangible assets 56,805,874.40 58,188,188.59 Share capital 602,762,596.00 602,762,596.00
Long-term unamortized
expenses 359,661.42 465,561.90 Capital reserve 363,629,927.51 363,629,927.51
Deferred income tax
assets 20,609,842.25 20,609,842.25 Reserve surplus 332,908,397.60 332,908,397.60
Other non-current assets - - Undistributed profit 292,913,219.51 547,986,755.29
Total of non-current
assets 2,810,101,098.76 2,846,238,791.77 Translation difference in
foreign currency statement - -
Equity attributable to
owners of the parent
company
1,592,214,140.62 1,847,287,676.40
Minority shareholders’
equity 192,056,592.38 208,604,106.24
Total of shareholders'
equity 1,784,270,733.00 2,055,891,782.6420
Total of assets 4,938,745,306.90 4,926,596,324.59 Total of liabilities and
shareholders' equity
4,938,745,306.90 4,926,596,324.5921
Consolidated Balance Sheet of the Parent Company
Unit: RMB
Assets 30 Jan.2010 31 Dec.2009
Liabilities and owner’s
equity 30 Jan.2010 31 Dec.2009
Current assets： Current liabilities：
Monetary fund 156,028,645.45 35,564,935.05 Short-term loan 2,050,000,000.00 1,499,000,000.00
Bill receivable - - Bill payable - -
Account receivable 120,437,839.32 86,395,444.92 Account payable 99,529,878.31 8,379,394.63
Account paid in
advance 1,669,057.09 2,359,390.63 Account received in
advance - -
Interest receivable - - Remuneration payable 30,188,816.87 25,524,730.72
Dividend receivable 597,875,904.41 597,875,904.41 Tax payable -373,608,500.64 -358,913,337.70
Other accounts
receivable 870,163,904.77 871,865,434.98 Interest payable 2,592,874.75 3,998,222.73
Inventory 181,809,092.27 195,072,444.79 Dividend payable - -
Long-term stock
investment due
within one year
- -
Other account payables
329,701,521.72 363,707,613.87
Other current assets 380,000,000.00 240,000,000.00 Long-term liabilities due
within one year - 110,000,000.00
Total of current
assets 2,307,984,443.31 2,029,133,554.78 Other current
liabilities
Non-current assets： Total of current
liabilities
2,138,404,591.01 1,651,696,624.25
Long-term
account receivable - -
Non-current liabilities
Long-term stock
investment
781,502,968.89 753,277,000.17 Long-term account
payable - -
Investment real estate
- - Specific account
payable - -
Capital assets 335,920,231.74 355,995,467.10 Total of non-current
liabilities - -
Disposal of capital
assets - - Total of liabilities 2,138,404,591.01 1,651,696,624.25
Project under
construction 58,864,884.74 46,316,005.30 Shareholders’ equity：
Intangible assets 937,237.51 1,368,935.26 Share capital 602,762,596.00 602,762,596.00
Development
expense - -
Capital reserve
288,769,132.47 288,769,132.47
Long-term
unamortized
expenses
228,194.90 284,795.36
Reserve surplus
332,908,397.60 332,908,397.60
Deferred income tax
assets 16,949,151.06 16,949,151.06 Undistributed profit 139,542,395.07 327,188,158.71
Other non-current
assets
- - Minority
shareholders’ equity - -
Total of non-current
assets
1,194,402,668.84 1,174,191,354.25 Total of
shareholders’ equity 1,363,982,521.14 1,551,628,284.78
Total of assets 3,502,387,112.15 3,203,324,909.03
Total of liabilities
and shareholders’
equity
3,502,387,112.15 3,203,324,909.0322
Consolidated Profit Statement
In RMB
.
Items Jan.—Jun. 2010 Jan.—Jun. 2009
I. Operation income 702,859,674.61 878,653,990.33
Less: operation cost 1,003,249,405.69 861,187,994.60
Operation tax and surcharge 2,971,470.22 3,524,473.48
Sales expense 464,946.47 497,766.79
Management expense 47,023,275.69 53,966,274.95
Accounting expense 59,239,993.66 64,435,700.10
Loss of assets impairment - -
Plus: gain of fair value change - -
Investment gain (loss) -32,231,888.28 -
Among: gain (loss) of investment into affiliated
and joint enterprises -32,231,888.28 -
II. Operation profit (loss) -442,321,305.40 -104,958,219.59
Plus: Non-operation income 171,419,645.98 180,256,133.16
Less: Non-operation expense 31,860.00 56,070.37
Among: Loss from disposal of non-current assets 1,840.00 4,271.00
III. Total of profit -270,933,519.42 75,241,843.20
Less: income tax expense 687,530.22 270,103.78
IV. Net profit -271,621,049.64 74,971,739.42
Net profit attributable to shareholders of parent
company -255,073,535.78 60,961,656.20
Minority shareholders’ equity -16,547,513.86 14,010,083.22
V. Earnings per share
(I) Basic earnings per share -0.42 0.10
(II) Diluted earnings per share Inapplicable Inapplicable
VI. Other consolidated incomes - -
VII. Total of consolidated incomes -271,621,049.64 74,971,739.42
Total of consolidated incomes attributable to
shareholders of the parent company -255,073,535.78 60,961,656.20
Total of consolidated incomes attributable to
minority shareholders -16,547,513.86 14,010,083.2223
Profit Statement of Parent Company
In RMB
Item Jan.—Jun. 2010 Jan.—Jun. 2009
I. Operation income 167,055,044.81 175,385,627.83
Less: operation cost 294,907,340.61 191,470,461.98
Operation tax and surcharge 1,686,853.10 2,125,019.80
Sales expense - -
Management expense 7,828,022.18 7,285,573.05
Accounting expense 18,046,704.28 13,855,694.33
Loss of assets impairment - -
Plus: gain of fair value change - -
Investment gain (loss) -32,231,888.28 -
Among: gain (loss) of investment into affiliated and
joint enterprises -32,231,888.28 -
III. Operation profit (loss) -187,645,763.64 -39,351,121.33
Plus: Non-operation income - 34,062,431.00
Less: Non-operation expense - -
Among: Loss from disposal of non-current assets - -
III. Total of profit -187,645,763.64 -5,288,690.33
Less: Income tax expense - -
IV. Net profit -187,645,763.64 -5,288,690.33
V. Earnings per share
(I) Basic earnings per share - -
(II) Diluted earnings per share Inapplicable Inapplicable
VI. Other consolidated income - -
VII. Total of consolidated income -187,645,763.64 -5,288,690.3324
Consolidated Cash Flow Statement
Unit: RMB
Item Jan.—Jun. 2010 Jan.—Jun. 2009
I. Net cash flow from operation activities
Cash received from sales of products and supply of labor
Tax expense returns received 954,715,452.71 1,018,270,032.05
Cash received and related to other operation activities - 7,897,031.12
Subtotal of cash inflows from operation activities 35,519,595.88 36,792,792.07
Cash paid for purchase of goods and acceptance of labor 990,235,048.59 1,062,959,855.24
Cash paid to or for staff 909,385,409.09 854,282,052.32
All tax paid 47,196,564.92 51,248,072.22
Cash paid and related to other operation activities 57,194,367.60 102,460,531.59
Subtotal of cash outflows from operation activities 43,800,949.21 31,876,065.34
Net cash flow from operation activities 1,057,577,290.82 1,039,866,721.47
II. Cash flow from investment activities -67,342,242.23 23,093,133.77
Cash received from divestment
Cash received from investment returns - -
Net cash drawback from disposal of capital assets, intangible assets
and other long-term assets
- -
Net cash received from disposal of subsidiaries or other business
units
11,593,462.50 520.00
Other investment-related cash received - -
Sub-total of cash inflows of investment activities - -
Cash paid for construction of fixed assets, intangible assets and other
long-term assets
11,593,462.50 520.00
Cash paid for investment 39,524,878.57 79,615,083.79
Net cash received from payment of subsidiaries and other operational
units
60,457,857.00 71,514,286.00
Other investment-related cash payment - -
Sub-total of cash outflows from investment activities - -
Net cash flow from investment activities 99,982,735.57 151,129,369.79
III. Cash flow from financing activities -88,389,273.07 -151,128,849.79
Cash received from investment take-up
Cash received from obtaining borrowings - -
Cash received from other financing-related activities 2,296,000,000.00 2,067,690,335.18
Subtotal of cash inflow from financing activities - -
Cash paid for debts 2,296,000,000.00 2,067,690,335.18
Cash paid for dividend or profit distribution, or interest 2,043,120,000.00 2,050,149,393.90
Other funding-related cash payment 71,236,958.66 77,832,666.48
Subtotal of cash outflows from financing activities - -
Net cash flow from financing activities 2,114,356,958.66 2,127,982,060.38
IV. Influence of exchange rate fluctuation on cash and cash
equivalents
181,643,041.34 -60,291,725.20
V. Net increase of cash and cash equivalents -2,624.45 37,870.2725
Plus: Balance of cash and cash equivalents at Period-beginning 25,908,901.59 -188,289,570.95
VI. Balance of cash and cash equivalents at Period-end 356,362,100.63 429,507,715.29
382,271,002.22 241,218,144.3426
Cash Flow Statement of the Parent Company
In RMB
Item Jan.—Jun. 2010 Jan.—Jun. 2009
I. Net cash flow from operation activities
Cash received from sales of products and supply of labor 506,963,574.90 550,389,826.10
Tax expense returns received - -
Cash received and related to other operation activities 152,163,679.44 330,094,785.11
Subtotal of cash inflows from operation activities 659,127,254.34 880,484,611.21
Cash paid for purchase of goods and acceptance of labor 450,688,125.74 409,790,306.33
Cash paid to or for staff 22,434,981.27 29,490,824.00
All tax paid 5,932,097.07 53,904,761.89
Cash paid and related to other operation activities 377,847,817.06 596,571,736.56
Subtotal of cash outflows from operation activities 856,903,021.14 1,089,757,628.78
Net cash flow from operation activities -197,775,766.80 -209,273,017.57
II. Cash flow from investment activities - -
Cash received from divestment - -
Cash received from investment returns - -
Net cash drawback from disposal of capital assets, intangible assets
and other long-term assets
- -
Net cash received from disposal of subsidiaries or other business
units
- -
Sub-total of cash inflows of investment activities - -
Cash paid for construction of fixed assets, intangible assets and other
long-term assets
19,267,886.09 15,256,795.85
Cash paid for investment 60,457,857.00 71,514,286.00
Net cash received from payment of subsidiaries and other operational
units
- -
Other investment-related cash payment - -
Sub-total of cash outflows from investment activities 79,725,743.09 86,771,081.85
Net cash flow from investment activities -79,725,743.09 -86,771,081.85
III. Cash flow from financing activities - -
Cash received from investment take-up - -
Cash received from obtaining borrowings 1,430,000,000.00 1,108,000,000.00
Cash received from other financing-related activities - -
Subtotal of cash inflows from financing activities 1,430,000,000.00 1,108,000,000.00
Cash paid for debts 989,000,000.00 784,366,140.00
Cash paid for dividend or profit distribution, or interest 43,032,885.87 38,733,162.74
Other funding-related cash payment - -
Subtotal of cash outflows from financing activities 1,032,032,885.87 823,099,302.74
Net cash flow from financing activities 397,967,114.13 284,900,697.2627
IV. Influence of exchange rate fluctuation on cash and cash
equivalents
-1,893.84 -71.09
V. Net increase of cash and cash equivalents 120,463,710.40 -11,143,473.25
Plus: Balance of cash and cash equivalents at Period-beginning 35,564,935.05 29,272,846.21
VI. Balance of cash and cash equivalents at Period-end 156,028,645.45 18,129,372.9628
Consolidated Statement of Changes in Owners’ Equity
In RMB
Amount in Jan.-Jun.2010 Amount of 2009
Shareholders’ equity attributable to the
parent company Shareholders’ equity attributable to the
parent company
Minor
sharehol
ders’
equity
Minor
sharehol
ders’
equity
Item
Share
capital
Capital
reserves
Surplus
reserves
Retained
profit
Total of
shareholde
rs’ equity
Share
capital
Capital
reserves
Surplus
reserves
Retained
profit
Total of
sharehol
ders’
equity
I. Balance at the
end of last year 602,762,596.00 363,629,927.51 332,908,397.60 547,986,755.29 208,604,106.24 2,055,891,782.64 602,762,596.00 363,629,927.51 332,908,397.60 473,871,306.65 162,709,543.29
1,935,881,771.0
5
Plus: Change of
accounting policy - - - - - - - - - - - -
Correction of
previous errors - - - - - - - - - - - -
II. Balance at the
beginning of
current year
602,762,596.00 363,629,927.51 332,908,397.60 547,986,755.29 208,604,106.24 2,055,891,782.64 602,762,596.00 363,629,927.51 332,908,397.60 473,871,306.65 162,709,543.29
1,935,881,771.0
5
III.
Increase/decrease
changed in Year
- - - -255,073,535.78 -16,547,513.86 -271,621,049.64 - - - 74,115,448.64 45,894,562.95 120,010,011.59
(I) Net profit - - - -255,073,535.78 -16,547,513.86 -271,621,049.64 - - - 74,115,448.64 45,894,562.95 120,010,011.59
(II) Other
consolidated - - - - - - - - - - - -29
income
Subtotal of the
above (I) and (II) - - - -255,073,535.78 -16,547,513.86 -271,621,049.64 - - - 74,115,448.64 45,894,562.95 120,010,011.59
(III) Capital
invested or
reduced by
shareholders
- - - - - - - - - - - -
1. Capital
invested by
shareholders
- - - - - - - - - - - -
2. Share payment
accounted into
shareholders’
equity
- - - - - - - - - - - -
3. Others - - - - - - - - - - - -
(IV) Profit
distribution - - - - - - - - - - - -
1.Withdrawl of
surplus reserves - - - - - - - - - - - -
2. Dividend
distribution to
shareholders
- - - - - - - - - - - -
3. Others - - - - - - - - - - - -
(V) Internal
settlement and
transfer of
shareholders’
equity
- - - - - - - - - - - -
1. Capital - - - - - - - - - - - -30
reserves
transferred to
share capital
2. Surplus
reserves
transferred to
share capital
- - - - - - - - - - - -
IV. Balance
ending at 30 June
2010
602,762,596.00 363,629,927.51 332,908,397.60 292,913,219.51 192,056,592.38 1,784,270,733.00 602,762,596.00 363,629,927.51 332,908,397.60 547,986,755.29 208,604,106.24
2,055,891,782.6
431
Statement of Changes in Owners’ Equity (Parent Company)
In RMB
Amount in Jan.-Jun.2010 Amount of 2009
Item
Share
capital
Capital
reserves
Surplus
reserves
Retained
profit
Total of
shareholders
’ equity
Share
capital
Capital
reserves
Surplus
reserves
Retained
profit
Total of
shareholders’
equity
I. Balance at the
end of last year 602,762,596.00 288,769,132.47 332,908,397.60 327,188,158.71 1,551,628,284.78 602,762,596.00 288,769,132.47 332,908,397.60 509,190,494.99 1,733,630,621.06
Plus: Change of
accounting policy - - - - - - - - - -
Correction of
previous errors - - - - - - - - - -
II. Balance at the
beginning of
current year 602,762,596.00 288,769,132.47 332,908,397.60 327,188,158.71 1,551,628,284.78 602,762,596.00 288,769,132.47 332,908,397.60 509,190,494.99 1,733,630,621.06
III.
Increase/decrease
changed in Year - - - -187,645,763.64 -187,645,763.64 - - -
-182,002,336.2
8 -182,002,336.28
(I) Net profit - - - -187,645,763.64 -187,645,763.64 - - -
-182,002,336.2
8 -182,002,336.28
(II) Other
consolidated
income - - - - - - - - - -
Subtotal of the
above (I) and (II) - - - -187,645,763.64 -187,645,763.64 - - -
-182,002,336.2
8 -182,002,336.28
(III) Capital
invested or reduced
by shareholders - - - - - - - - - -32
1. Capital invested
by shareholders - - - - - - - - - -
2. Share payment
accounted into
shareholders’ equity - - - - - - - - - -
3. Others - - - - - - - - - -
(IV) Profit
distribution - - - - - - - - - -
1.Withdrawl of
surplus reserves - - - - - - - - - -
2. Dividend
distribution to
shareholders - - - - - - - - - -
3. Others - - - - - - - - - -
(V) Internal
settlement and
transfer of
shareholders’ equity - - - - - - - - - -
1. Capital reserves
transferred to share
capital - - - - - - - - - -
2. Surplus reserves
transferred to share
capital - - - - - - - - - -
IV. Balance ending
at 30 June 2010 602,762,596.00 288,769,132.47 332,908,397.60 139,542,395.07 1,363,982,521.14 602,762,596.00 288,769,132.47 332,908,397.60 327,188,158.71 1,551,628,284.7833
II. Notes to the financial statements
(I.) Company Profile
Shenzhen Nanshan Power Co., Ltd (hereinafter called as “Company”) was reorganized to be a joint-stock
enterprise from a foreign investment enterprise in 1993, upon the approval of General Office of Shenzhen
Municipal Government with Document Shen Fu Ban Fu No.897 in 1993. When transformed, the
Company’s total capital was 103,000,000 Yuan with paper value per share 1 Yuan. In 1994, after
approved by Document Shen Zhu Ban Fu No. 179 in 1993 issued by Shenzhen Securities Regulatory
Office, the Company offered 40,000,000 RMB common shares and 37,000,000 foreign exchange shares
listed in China respectively to domestic and overseas investors, which were listed in Shenzhen Securities
Exchange respectively on Jul 1, 1994 and Nov 28, 1994. After the offering, the Company’s total capital
increased to 180,000,000 Yuan. After several later dividnend distributions and stock allotments, the
Company’s capital increased to 602,762,596 Yuan on June 30, 2009.
The Company together with its subsidiaries (hereafter referred as the Company) is mainly engaged in
businesses as production of power and heat，plant constructional, oil trader, property developmental,
construction technology consultation and sludge drying.
(II) Preparation basis of Financial Statements
1．Preparation basis of Financial Statements
The Company takes the accrual system as the bookkeeping basis of accounting auditory. In
addition to some financial instruments of fair value measurement, the Financial Statements are
measured on the basis of historic cost. As for the assets impairment, available is the corresponding
impairment provision accrued in line with the relevant rules.
2．Declaration of obedience to corporate accounting principles
The Financial Statements are up to requirements of corporate accounting principles and relevant
rules released by the Treasury Ministry on 15th February 2006, and also a true and thorough reflection to
the Company together with its financial information as consolidated financial position on 30th June 2010,
and the Company together with its consolidated operation results, and consolidated cash flow in the first
half of 2010.
3．Accounting period
The Group’s accounting year is Gregorian calendar year, namely from 1st January to 31st December.
4．Bookkeeping standard currency
RMB is the currency in the Group’s main business economic environment and the bookkeeping
standard one, which is adopted in preparation of the financial statements.
5．Accounting methods for consolidation of enterprises under the same control or otherwise
The corporate consolidation is the transaction or events of the formation of an entity of financial
statements by the combination of two or more individual enterprises.
The Group recognizes the assets and liabilities obtained by the corporate consolidation on the
consolidation day or purchase day. The consolidation day is the date that transferred to the Group
is the actual obtaining of the control over the consolidated or purchased party, namely the control
rights in net assets and decision-making for production and operation, of the consolidated or
purchased party.
5.1 Consolidation of enterprises under the same control
The enterprises involved in the consolidation are all under the final control of one party or parties
and the control is not temporary. That is the corporate consolidation under the common control.
The consolidation party is the one who obtained the control right over the participant enterprises,
and the consolidated parties are other participant enterprises.
The difference between the book value of the net assets and the consideration value with total book value of34
stock is used for reserve adjustment while it is used for retained earnings adjustment as not sufficient for eat up
part of reserve.
Directly related expenses for corporate combination are reckoned into the current loss/gain
5.2 Consolidation of enterprises not under the same control and goodwill
The enterprises involved in the consolidation are ones not under the same final control of the
common party or parties before and after the consolidation. That is the corporate consolidation
under the different control. As for the consolidation, the purchaser is the party who obtained the
control right over the other participant enterprises and the other ones is the purchased parties.
As for the consolidation, the consolidation cost is assets paid for and the liabilities responsible for
the obtaining of the control right from the purchased party, together with the fair value of the
equity instruments offered and all other expenses directly related to the consolidation. As for the
consolidation accomplished via several exchange transaction, the cost is the total of every single
transaction. As for the stipulation in the consolidation contract for the future events of probable
influence on the consolidation cost, if the future events is expected of probable occurrence and the
influence sum can be measured reliably on the purchase day, the future events is reckoned into the
cost.
Measured on fair value on the purchase day are the recognizable assets, liabilities or the
contingent liabilities obtained in the consolidation and recognized as qualified.
Measured by fair value is consolidation cost and recognized assets of the purchaser. The plus
difference between fair values of the consolidation cost and the recognized net assets is
recognized as business fame while as for the minus one, firstly the measurements of consolidated
cost and fair value of the recognizable assets, liabilities or contingent liabilities was checked, and
the consolidated cost which was checked and less than the fair value of the net assets obtained
from the purchased party is reckoned into current loss/gain.
The impairment test is taken every year on the business fame formed by the consolidation. The
test is taken in accordance with the relevant assets group or portfolio of groups. Namely, the book
value of the fame is diluted reasonably into the relevant group from the purchase day; as for ones
impossible to be diluted, they are diluted into the portfolio. The assets loss is recognized if the
sum receivable of the assets group or the portfolio of the diluted business fame is lower than the
book value. The impairment loss abates the book value of the business fame diluted into the group
or the portfolio firstly and then abates book value of other assets proportionally according to the
proportion of the book value of other assets.
The recoverable sum is the higher one between the net of assets fair value less disposal expenses
and the current value of the future cash flow. The assets fair value is determined by the sales
agreement price in the fair trade. As for the assets not in the sales agreement but in the active
market, their fair value is determined by the offering price of the purchaser; as for the assets
neither in the agreement nor in the active market, their fair value is based on the best information
receivable. The disposal expenses are composed of the law expense, relevant tax, cartage, and the
actual direct expenses enable the assets to be available. The assets current value of future cash
flow is determined according to the future expected cash flow in the continual use and the final
disposal and the appropriate discount rate.
Goodwill impairment will not be written back in subsequent fiscal periods as soon as it was
recognized.35
6． Preparation methods for corporate consolidated statements
The scope is determined on the basis of control. The control is right to decide another enterprise’s
accounting and operation policies and obtain the interest according to the latter enterprise’s
operation.
The subsidiaries’ main accounting policies and period are determined by the Company’s uniform
ones.
All substantive accounts o transactions between the Company and its subsidiaries or among the
subsidiaries are balanced out in consolidation.
The amount not attributable to the parent company is the minority shareholders’ equity and is
listed in the consolidated balance sheet as minority shareholders’ equity. The amount that the
difference between the distributed loss by the minority shareholders and the share of the owners’
equity at Period-beginning
7. Determination criteria of cash equivalent in cash flow statements
Cash is the corporate storage cash and deposits available for payment anytime. Cash equivalents are
investment of short-term, strong mobility and easy transfer to known sum cash, and slight risk of
value vibration.
8. Foreign currency exchange
The current rate of the trading day is adopted in the initial recognition of the foreign exchange.
Foreign monetary items are converted at the current rate on the assets/liabilities statements’ day,
for the exchange difference due to inconsistency of the current exchange rate on that day and in
the initial recognition or on the last balance sheet day, in addition to: (1) the foreign specific
borrowing difference up to the capitalization conditions reckoned into the relevant assets cost via
capitalization; (2) difference of the hedging instruments for avoidance of the foreign exchange
risk handled by the hedging accounting methods; (3) difference of the non-monetary items and
from the changes of the book value of financial assets in addition to the diluted cost all reckoned
into the current loss/gain.
Non-monetary items measured in historical cost are still measured by sum on the bookkeeping
standard currency at the current exchange rate. The items measured by the fair value are converted
at the current rate on the fair value recognition day. The difference is dealt as the fair value change
and reckoned into the current loss/gain or recognized as the other consolidated income and
reckoned into the reserve.
9. Financial instruments
9.1 Recognition of fair value of financial assets and liabilities
The fair value is sum for assets exchange or debts payment between the trading parties. As for
instrument in active market, the fair value is adopted according to the quotation in the active
market. The quotation is the one easy to obtain in the exchange market, broker commercials, trade
associates, price-setting service institutions. As for the instruments not in the active market, the
fair value is recognized by the estimation technology. The technology is composed of the price in
the latest fair trade, fair value according to the fundamentally same instruments, cash flow
discount and stock price-setting model.
9.2Classification, reorganization and measurement of financial assts
The financial assets are bought or sold by the regular way, and recognized or terminated to be
recognized according to the trading day accounting. On initial confirmation, the financial assets36
are divided into: financial assets measured by fair value and of which the changes are recognized
to be current profit/loss, receivables, tradable financial assets and held-to-maturity investments.
The initial recognition is measured by the fair value. As for the assets measured by the fair value
and with the change gain/loss reckoned into the current gain/loss, the relevant expenses are
reckoned into the initial recognition sum.
The assets are loans and account receivable.
Loan and the account receivable
The assets are the un-derivative financial assets without quotation in the active market, steady or
recognizable recoverable sum. The assets are composed of bill receivable, account receivable and
other account receivable.
The actual interest rate and the diluted cost are adopted in the follow-up measurement of loan and
account receivable. Gain or loss is reckoned into the current gain/loss upon the recognition
termination, impairment or dilution.
9.3 Impairment of financial assets
On the asset/liabilities day, besides check on book value of financial asset to exclusion of tradable
financial assets, preparation for assets impairment is made if there is objective evidence to prove
impairment.
Objective evidence for impairment of financial assets is composed of the following events
observable:
(1) Sever financial difficulties of offering part or debtor;
(2) Breach of the contract, as in payment of interest or principal or payment overdue;
(3) Recession making for debtors by creditors inconsideration of economic or legal factors;
(4) Probable bankruptcy or other financial restructuring of debtors;
(5) Incapability of trading the financial assets in the market as the offering party’s substantive
financial difficulties;
(6) Incapability of recognize whether cash flow of certain assets decreases or not but the
discovery after the general evaluation that as can be measured, the expected future cash flow
surely decreases since the initial recognition, including:
--Gradual worsening of the debtor’s solvency for the group financial assets
--Incidences of the probable chance to cause the group financial assets unable to be paid in the
debtors’ country or district;
(7) Material unfavorable changes in the debtor’s operation environment of technology, market,
economy and law;
(8) Severe or permanent fall-down in fair value of equity instrument investment;
(9) Other objective evidence to prove the impairment of the financial assets.
The individual impairment test is taken on the singly substantive financial assets. The individual
impairment test is taken on the singly small assets or the impairment test is taken on the assets
portfolio of the similar credit risk characters.
- Impairment of the loans and the account receivable
Loss of impairment of financial assets measured by diluted cost is written down into the future
expected cash flow. The written-down sum is recognized as the impairment loss and reckoned into
the current loss/gain. After the recognition of impairment of the above assets, if there is
objective evidence to show that the asset has recovered, which is related to events following up
the loss, the previous impairment loss is taken back. The book value of the assets transferred back
into the impairment loss is not above the diluted cost supposedly un-accrued on the transfer day.37
9.4 Recognition and measurement of transfer of financial assets
As for the financial assets up to the following conditions, the recognition termination is available:
(1) Termination of the contract right to take the cash flow of the financial assets;(2) transferred to
the transferring-in part nearly all risk and compensation;(3) all risk and compensation neither
transferred nor retained, and with the give-up of the control over the financial assets.
As for financial assets of almost all risk and compensation neither transferred nor retained, and
without the give-up of the control over the financial assets, it was recognized according to the
extension of the continual entry into the transferred financial assets and relevant liabilities are
correspondingly recognized. The continual entry into the transferred financial assets is risk level
which the enterprise faces up to due to the assets changes.
As for the whole transfer of the financial assets up to the recognition termination conditions, the
book value of the transferred assets, together with the difference between the consideration value
and the accumulative total of the fair value change of the other consolidated income, is reckoned
into the current gain/loss.
As for the partial transfer of the financial assets up to the recognition termination conditions, the
book value of the transferred assets is diluted on the relative fair value between the terminated
part and the un-terminated part; and reckoned into the current loss/gain is the difference between
the sum of the consideration value and the accumulative sum of the valuation change ought to be
diluted into the recognition termination part but into the other consolidated income, and the above
diluted book value, is reckoned into the current loss/gain.
9.5 Categories and measurement of financial liabilities
The financial liabilities are divided into the financial liabilities measured on the fair value and
with their changes reckoned into the current loss/gain, and the other financial liabilities. The
liabilities in the initial recognition are measured on fair value. As for the financial liabilities
measured on the fair value and with their changes reckoned into the current loss/gain, the relevant
transaction exchange expenses are directly reckoned into the current loss/gain while as for the
other liabilities, the relevant transaction expenses are reckoned into initial recognition sum.
The Company’s liabilities are the other financial liabilities.
Other financial liabilities
The follow-up measurement by the cost is taken on the derivative financial liabilities which is
hooked with the stock instrument without the quotation in the active market and the reliable
measurement, and settled by handing over the stock instrument. The follow-up measurement at
the actuarial rate and by the diluted cost is taken on the other financial liabilities.
9.6Termination recognition of financial liabilities
Only is released the whole or part of the current duties, the termination of the liabilities or part of
it is available. The Group (the creditor) signed the agreement with the debtor: the existing
liabilities are replaced by the bearing of the new liabilities; and the contract terms are
fundamentally different of the new liabilities and the existing ones; the termination of the
recognition of the existing ones is available; and the recognition of new ones is available.
As for the whole or partial termination of the recognition of the liabilities, the difference between
the book value of the part of recognition termination and the consideration value paid (including
the non-cash assets transferred out or the liabilities newly beard) is reckoned into the current
loss/gain.38
9.7 Derivative instruments and embedded derivative instruments
The derivative instruments are measured initially on fair value on the contract signing day and
consequently also on the fair value. In addition to the derivative instruments designated as the
hedging instruments with highly effective hedge and with the loss/gain from the fair value change
reckoned into the loss/gain according to the nature of the hedging relations and requirements of
the hedging accounting, the fair value changes of other derivative instruments are reckoned into
the current loss/gain.
As for the mixed instruments including the embedded derivative instrument, if they are not
designated as the financial assets and liabilities to be measured on the fair value and with the fair
value change to be reckoned in the current change and there is no close relationship between the
embedded instrument and the principle contract in the economic characters and risks and the
independent instrument of the same conditions with the embedded derivative instrument and
coincident with the definition of the derivative instrument, the derivative embedded instrument
will be separated from the mixed instrument and be dealt with as the independent derivative
financial instrument. If the embedded financial instrument cannot be measured independently
upon the obtaining or on the balance sheet day, the integrity of the mixed instruments are
designated as the financial assets or liabilities to be measured on the fair value with the fair value
change to be reckoned into the current loss/gain.
9.8 Balance-out between the financial assets and liabilities
As the Company has the legal right to balance out the financial liabilities by the net or liquidation
of the financial assets, the balance-out sum between the financial assets and liabilities is listed in
the balance sheet. In addition, the financial assets and liabilities are listed in the balance sheet
without being balanced out.
9.9 Stock instrument
The stock instrument is the contract to prove the holding of the surplus stock of the assets with the
deduction of all liabilities in the Company. As for the corporate consolidation stock and other
stock instruments, the consideration value received in offering with the deduction of trading
expense is used for increasing the shareholders’ equity.
The Company’s all distribution (shares dividend excluded) to the holders of the stock instrument
will decrease the shareholders’ equity. The Company does not recognize the fair value change sum
of the stock instrument.
10. Account receivable
10.1 Recognition standards of bad account preparation for single substantive account receivable
Recognition standards of bad
account preparation for single
substantive account receivable
The single account receivable above RMB 2 million is
recognized as single substantive account receivable
Accrual methods of bad
account preparation for single
substantive account receivable
The Company takes the independent impairment test on
the single substantive account. As for the account
receivable without the impairment in the test, it is
included in the account receivable portfolio of the similar
credit risk characters for the impairment test. As for the
account receivable with the recognition of impairment
loss, it is not included in the account receivable portfolio
of the similar credit risk characters for the impairment test
10.2 Recognition standards and accrual methods of bad account preparation for account
receivables as not substantive singly but rather risky portfolio39
Recognition criteria of credit risk
portfolio
The Company groups the account receivables such as the
single small one or the single substantive one according to
the similarity and the relevancy of the credit risk
characters. The credit risks are usually a reflection of the
debtor’s solvency of all due sum under the contract
conditions of the assets, and also relevant to the test and
measurement of the future cash flow of the checked
account receivable.
Accrual methods recognized
according to the credit portfolio
As for the impairment test of the portfolio, the provision
for bad debts is evaluated and recognized according to the
portfolio structure and similar credit characters (the
debtor’s solvency of debts under the contract conditions)
and based on the historic loss experience and the current
economic situations as well as the existing loss in the
expected account receivable. As for the expected account
receivable of the possible impairment loss, the loss of bad
debts is recognized for the accrual of bad debts on the
difference between the book value and the recoverable
sum.
11. Inventory
11.1 Categories of inventory
The Company’s inventory mainly consists of fuels, raw materials, property development cost and
products. The inventory is measured initially by cost. The property development cost consists of
the land transfer capital, supporting infrastructure expenditure, construction installation projects
expenditure, the loan expense before the completion of the development projects and the other
relevant expenses in the development. Other inventory cost consists of the purchase cost, process
cost, and other expenditure enables the inventory to arrive at the present place and the sate to
occur.
11.2 Valuation method of inventory delivered
The actual cost of the property development products delivered is recognized by the individual
valuation method. The actual cost of other inventories delivered is recognized by the weighted
average method.
11.3 Recognition basis of net realizable value of inventory, and accrual methods of preparation for
inventory depreciation
On the balance sheet day, the inventory is measured by the lower one between the cost and the net
realizable value. As the net realizable value is lower than the cost, the inventory depreciation
provision is accrued. As for the inventory of large sum and lower price, the inventory depreciation
provision is accrued by the inventory categories. As for the inventory related to the product series
produced and sold in the same district, of the same or similar final use or purpose and impossible
to be separated from the other items, the provision is consolidated and accrued. The provision for
other inventory is accrued by the difference between the cost and net realizable value.
Upon the accrual of the inventory depreciation provision, if the previous influence factors on the
inventory deduction disappeared, which resulted in the net realizable value being higher than its
book value; the accrual is transferred back within the previous accrual of the provision and
reckoned into the current gain/loss.
The net realizable value is balance of the estimated sale price less the estimated forthcoming cost
upon the completion, the estimated sale expense, and the relevant tax in the daily activities. Upon
the recognition of net realizable value of the inventory, the concrete evidence is based on and the
purpose of holding the inventory and the influence of events after the balance sheet day are
considered.40
11.4Inventory system
The inventory system is perpetual inventory system.
12. Long-term equity investment
12.1 Recognition of initial investment cost
As for the long-term stock investment formed in the corporate consolidation, if it is the one
obtained in the consolidation of enterprises under the same control, the book value of the
consolidated party’s shareholders’ equity obtained on the consolidation day is taken as the initial
investment cost; as for the one obtained in the consolidation of enterprises not under the same
control, the consolidated cost is taken as the initial investment cost. Other stock investment
besides the long-term stock investment formed in the corporate consolidation is measured initially
by the cost.
12.2 Follow-up measurement and gain/loss recognition
As for the long-term stock investment without the common control over or significant influence
on the invested units, the quotation in the active market and a reliable measurement of the fair
value, it is measured by the cost. As for the investment with common control over or significant influence on the
invested units, it is measured by the equity. As for the long-term stock investment without the common
control over or significant influence on the invested units, but a reliable measurement of the fair
value, it is checked as financial assets available for sale.
In additional, the long-term stock investment with the control over the invested units is checked
by the cost in the parent company’s financial statements.
12.2.1. Long-term equity investment checked by the cost
Upon the cost check, the investment is valuated on the initial cost. In addition to the actual prices
or the announced but yet undistributed cash dividend or profit in consideration valuation, the
current investment return is recognized by the announced cash dividend or profit by the invested
units.
12.2.2. Long-term equity investment checked by the equity
The long-term equity investment acquired by paying cash, should take purchasing price that
actually paid as initial investment cost.
Initial investment cost including expense, tax and other necessary payout that directly related with
acquiring the long-term equity investment. Accounting Standards of Business Enterprise
No.8—Assets Impairment, the long-term equity investment acquired by issuing equity securities,
should take fair value of the issued equity securities as initial investment cost.
The long-term equity investment invested by investors, should take the promised value in
investment contract or agreement as initial investment cost, excluding those promised in the
contract or agreement that the value is not fair.
The long-term equity investment acquired by non-monetary asset exchange, its initial investment
cost should be confirmed according to Accounting Standards of Business Enterprise
On the 1st January 2007, the long-term equity investment acquired by debt reorganization, its
initial investment cost should be confirmed
12.2.3. Acquisition of the minority stock
In the preparation of the consolidated financial statements, the difference is used for the reserve
adjustment of the long-term stock investment and the net assets, and the insufficient balance for
the reserve deduction is remained for the return adjustment.
12.2.4. Disposal of the long-term equity investment
The difference is reckoned into the shareholders’ equity.41
The depreciation of gas turbine set included in machinery shall be adopted with
units-of-production depreciation method, and the depreciation shall be reckoned with its entry
value.
12.3 Recognition standards the common control over and significant influence on the invested
units
Except for impairment loss and exchange profit/loss caused by foreign monetary financial assets,
the fair value changes of tradable financial assets shall be directly reckoned in shareholders’ equity,
and upon the final of confirmation of the financial assets, the accumulation of fair value changes
formerly and directly reckoned in equity shall be transferred into current profit/loss. The interests
of the tradable liabilities instrument investment calculated according to actual interest rate method
during being held, and cash bonus announced to be distributed by the invested enterprise and
related to tradable equity instrument investment shall be reckoned as investment return in current
profit/loss.
12.4 Impairment test methods and the accrual methods for the impairment provision
On initial confirmation, the financial assets are divided into: financial assets measured by fair
value and of which the changes are recognized to be current profit/loss, receivables, tradable
financial assets and held-to-maturity investments.
The classification of financial assets is depended on the Group’s holding intention and capability
on financial assets. The Group has not any held-to-maturity investment in the year.
The impairment of long-term equity investment will not be written back in subsequent fiscal
period as soon as it was recognized.
13. Investment real estate
Real estate for investment includes the promises for lease, and shall be initially measured with
cost. The follow-up expenditures related to the real estate for investment shall be reckoned in the
cost of the real estate for investment when the related economic benefits very likely flow in the
Group and of which the cost may be measured reliably; or the expenditures shall be reckoned in
current profit/loss upon their occurrences.
The Group adopts cost method to follow-up measure all its real estate for investment, and
withdraws depreciation and amortization for the promises and land use right in accordance with
their estimated service lives and net salvages.
If the usage of real estate for investment is changed to be private, since the change date, the real
estate for investment shall be converted to be fixed asset or intangible asset. If the real estate for
private usage is changed to be for investment, since the change date, the fixed asset or intangible
asset shall be converted to be real estate for investment.
When converted, the account value of the real estate before conversion shall be recognized to be
the account value after conversion.
The estimated service lives, estimated net salvages and depreciation (amortization) method shall
be re-checked and properly adjusted at the end of each year.
When a real estate for investment is disposed, or discarded permanently, and no economic
benefits can be gained from such disposal, terminate to confirm the real estate for investment. The
amount of the income from disposal (sales, transfer, discard or damage) of a real estate for
investment after deducting its account value and related taxes shall be reckoned in current
profit/loss.
14. Fixed assets
14.1 Recognition conditions for the fixed assets
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods,
providing services, lease or for operation and management, and have more than one year of
service life.
14.2 Depreciation of various fixed assets42
Initial measurement shall be conducted on fixed assets according to the actual cost when obtain
them and also considering the expected costs for disposal. From the next month since reaching the
intended use state, depreciations on fixed assets shall be accounted by using the method of
average life length except the steam turbine generating unit that accounted by withdrawal the
working volume method.
14.2 Depreciation of various fixed assets – (Cont)
Life expectancy, expected net impairment value and annual depreciation rate of all assets are as
follows:
Item
Life
expectancy
Salvage value
rate
Annual
depreciation rate
Houses and buildings 20 years 10% 4.5%
Equipment (fuel machinery group
excluded) 10 years 10% 9%
Equipment--fuel machinery group
(note) 10%
The work quantit
y method
Transportation tools 5—10 years 10% 9%-18%
Other equipment 5 years 10% 18%
Estimated salvage value refers to the amount of value retrieved after deducting of predicted
disposal expense when the expected using life of a fixed asset has expired and in the expected
state of termination.
Note: Steam turbine generating unit that accounted by withdrawal the working volume method,
the specifications are as follows:
Name Fixed assets Depreciation sum
(RMB/hour)
No.1 Power
Group 4,225.09
No.3 Power
The Company Group 4,401.76
No.7 Power
Group 4,407.11
Shenzhen New Power Industrial Co., Ltd. (New
Power Company)
No.10 Power
Group 3,954.47
No.1 Power
Group 1,911.87
No.2 Power
Group 688.66
No.3 Power
Group 1,902.68
Shenzhen Nanshan Power (Zhongshan) Co., Ltd
(“Zhongshan Power”)
No.4 Power
Group 693.18
No.1 Power
Group 2,009.43
No.2 Power
Group 585.11
No.3 Power
Group 1,980.18
Shennandian (Dongguan) Weimei Co., Ltd
(“Weimei Power Company”)
No.4 Power
Group 585.0843
14.3Impariement test on fixed assets and providing of impairment provision
The fair value change of financial assets measured by fair value and of which the changes are
recognized to be current profit/loss shall be recognized to be fair value change profit/loss and
reckoned in current profit/loss; the received interests or cash bonus during holding an assets and
disposal profit/loss in disposal of the asset shall reckoned in current profit/loss.
Once fixed assts impairment is recognized, it shall not be written back in subsequent fiscal
periods.
14.4 Other remarks
Except for impairment loss and exchange profit/loss caused by foreign monetary financial assets,
the fair value changes of tradable financial assets shall be directly reckoned in shareholders’ equity,
and upon the final of confirmation of the financial assets, the accumulation of fair value changes
formerly and directly reckoned in equity shall be transferred into current profit/loss.
The interests of the tradable liabilities instrument investment calculated according to actual
interest rate method during being held, and cash bonus announced to be distributed by the invested
enterprise and related to tradable equity instrument investment shall be reckoned as investment
return in current profit/loss.
15. Projects under construction
Project under construction shall be measured with its actual cost. The actual cost includes
construction expenses, necessary expenditures for the project under construction reaching the
expected conditions for use, and the loan expenses for the construction meeting capitalization
conditions before reaching the expected conditions for use. When a project under construction
reaches the expected conditions for use and is transferred to be a fixed asset, its depreciation shall
be reckoned since the next month.
For the fixed assets compliant with sales conditions, the lower amount between their account
value and the fair value after deducting disposal expenses shall be listed as other current assets.
The amount of fair value deducting disposal expenses lower than the former account value shall
be reckoned in asset impairment loss. When a fixed asset is disposed, or discarded permanently,
and no economic benefits can be gained from usage and such disposal, terminate to confirm the
fixed asset. The amount of the income from disposal (sales, transfer, discard or damage) of a fixed
asset after deducting its account value and related taxes shall be reckoned in current profit/loss.
Once impairment of construction impairment is recognized, it shall no be write back in
subsequent fiscal periods.
16. Loans expenses
Except for the financial assets measured by fair value and of which the changes are recognized to
be current profit/loss, the Group will check all account values of financial assets on the balance
sheet date, and if any objective evidence shows impairment on any financial asset, withdrawal for
impairment reserve shall be recognized.
Where impairment of financial assets measured by post-amortization cost, the withdrawal of
impairment reserve shall be recognized at the difference of the current value estimated with future
cash flows (excluding future credit loss not occurred yet) lower than account value. If there is
objective evidence that the value of the financial asset has been recovered, and the recovery is
objectively related to the subsequent matters after the confirmation of the loss, the recognized44
impairment loss shall be returned and reckoned in current profit/loss.
Where the fair value of tradable financial asset changes greatly or decreases non-temporarily, the
cumulative loss formerly directly recognized to be shareholders’ equity and caused by the
decrease of fair value shall be transferred out and reckoned in impairment loss.
For the tradable liabilities instrument investment of which impairment loss has been recognized,
when the fair value increases after the period and the increase is objectively related to the
subsequent matters after the confirmation of the impairment loss, the formerly recognized
impairment loss shall be returned and reckoned in current profit/loss.
For the tradable equity instrument investment of which impairment loss has been recognized,
when the fair value increases after the period and the increase is objectively related to the
subsequent matters after the confirmation of the impairment loss, the formerly recognized
impairment loss shall be returned and directly reckoned in current profit/loss.
When the impairment of equity instrument investment, without quotation in the active market and
of which the fair value can not be measured reliably, occurs, the difference of its account value
higher than the current value of the future cash flows of similar financial assets calculated
according to the current market profitability shall be recognized as impairment loss. Once
impairment loss confirmed, its recovery shall not be returned in later periods.
17. Intangible assets
17.1 Intangible assets
Intangible assets are those recognizable non-monetary assets without physical shape under the
Company’s possessed or control.
The investment cost to the joint venture shall be measured with the actual cost in initial
measurement and equity method in follow-up measurement.
If the initial investment cost is higher than the enjoyable share of the fair value of the invested
enterprise identifiable net assets when investment, the initial investment cost shall be recognized
as long-term equity investment cost; if the initial investment cost is lower than the enjoyable share
of the fair value of the invested enterprise identifiable net assets when investment, the difference
shall be reckoned in current profit/loss, and accordingly adjust and increase the cost of the
long-term equity investment.
If equity method is adopted for calculation, the Group’s enjoyable or attributable net profit/loss
share in the invested enterprise shall be recognized as current profit/loss.
The Group recognizes the net losses of the invested enterprise until the book value of the
long-term equity investment and other long-term rights and interests which substantially form the
net investment made to the invested entity are reduced to zero, but for the losses or liabilities
which the Group has additional responsibilities to bear, and that is compliant with confirmation
conditions of estimated liabilities stipulated by contingency stipulations, the investment loss and
estimated liabilities shall be recognized continuously.
On the condition that the Group’s shareholding ratio is consistent, other changes of shareholders’
equity other than net profit/loss of the invested enterprise shall be directly reckoned in capital
reserve in proportion to the shareholding ratio.
By the Group’s receivable profit or bonus when announced to be distributed by the invested
enterprise, accordingly subtract the account value of the long-term equity investment. In the
transaction between the Group and its invested enterprise, the profit/loss in such internal
transaction that is owe to the Group in proportion to its shareholding ratio shall be written off, and
then recognize investment profit/loss. For the part of asset impairment loss in the transaction loss
between the Group and its invested enterprise, the unrealized profit/loss shall not be written off.
17.2 Impairment test method for the intangible assets and the accrual method
Impairment testing is performed on intangible assets at each balance sheet day. When evidence
showing that impairment has occurred, the recoverable value shall be assessed. Assessment of
recoverable value is based on individual assets. If the recoverable value was hard to evaluate45
separately, it shall be decided along with the group of assets it belongs to. If recoverable value of
an asset is lower than its book value, the balance shall be provided for impairment provision and
accounted into current gains and losses.
Concerning those intangible assets with unknown use life and those that do not reached the use
states, shall performed impairment test every year whether showed evidence of impairment.
Once intangible assets impairment loss was recognized, shall not be written back in subsequent
fiscal year.
18. Long-term expenses to be amortized
Long-term amortizable expenses are those already occurred and amortizable to the current term
and successive terms for over one year. Long-term amortizable expenses are evenly amortized to
the benefit period.
19. Projected liabilities
Responsibilities connected to contingent issues and satisfy all of the following conditions are
recognized as projected liabilities: (1) The responsibility is a current responsibility undertaken by
the Company; (2) Fulfilling of the responsibility may lead to financial benefit outflow; (3) The
responsibility can be measured reliably for its value.
At balance sheet day, with reference to the risks, uncertainty and periodic value of currency that
connected to the contingent issues, the projected liabilities are measured according to the best
estimation on the payment to fulfill the current responsibility.
If the expenses for clearing of projected liability is fully or partially compensated by a third party,
and the compensated amount can be definitely received, it is recognized separated as assets.
Though the compensated amount shall not greater than the book value of the projected liability.
20. Recognition of income
20.1 Income from the sales of goods
The cash listed in cash flow statement means the cash in hand and the deposit available for
payment at any time, and cash equivalents mean the investments with short holding term, high
liquidity, easily converted to be known cash and low value change risk
20.2 Income from the supply of the labor
If on the balance sheet date there is any evidence indicating a possible impairment on fixed assets,
constructions in process, intangible assets, real estate for investment measured by cost method,
long-term equity investments to subsidiaries and joint ventures and other long-term equity
investments, impairment test shall be done.
If the results of impairment test indicate that the recoverable amount is lower than the account
value, impairment reserve equal to the difference shall be withdrawn and reckoned in impairment
loss.(1) The recoverable amount shall be the higher between the net amount of the fair value of
the asset deducting disposal expenses and the present value of the future cash flows of the asset.(2)
Asset impairment reserve shall be calculated and recognized on the basis of single asset, (3) if the
recoverable amount of a single asset is difficult to be estimated,(4) the recoverable amount of the
asset group shall be recognized, which includes the asset. An asset group is the minimal asset
group that may separately generate cash inflows.
An asset group is the minimal asset group that may separately generate cash inflows. for the part
replaced, the reorganization of its account value shall be terminated; all other subsequent expenses
shall be reckoned in the current profit/loss.
If the subsequent expenses related to a fixed asset, of which the related economic benefits likely
flow in the Group and the cost may be measured reliably, they shall be reckoned in the cost of
fixed asset;
Fixed assets include house, building, machinery, transport tools and other equipments. The
purchased or newly constructed fixed assets shall be initially measured with the actual cost of the
purchase and construction.
20.3 Income from the use expenses46
The income is recognized on the rights and responsibility.
20.4 Interest income
It is determined by the actual rate on the trading day.
21. Government subsidy
A government subsidy shall be recognized when the Group meets all conditions necessary to the
subsidy and may receive the subsidy.
If a government subsidy is cash asset, it shall be measured with the actually received amount; if
the subsidy allocated at the fixed standard shall be measured with the receivable amount; if the
government subsidy is non-monetary asset, it shall be measured with its fair value; and if the fair
value can not be found reliably, the subsidy shall be measured with the nominal amount and
directly reckoned in current profit/loss.
A government subsidy related to assets shall be recognized as deferred income, and shall be
averagely distributed during the service lives of the related assets and reckoned in current
profit/loss.
If a government subsidy related to income is used for compensation of related expenses or loss
during the later periods, it shall be recognized as deferred income, and during the period of
recognizing of the related expenses, reckoned in current profit/loss; if the subsidy is to
compensation for the related expenses or loss of an enterprise, it shall be directly reckoned in the
current profit/loss.
22. Deferred income tax assets /liabilities
22.1 Current income tax
At the balance sheet date, the income tax liabilities (or assets) formed at current term or pervious
terms are measured by the predicted income tax payable according to the tax law. The taxable
amount of income used in calculating of income tax expense of current term is the result of
adjusted accounting profit before tax of the current year according to the relative tax law.
22.2 Deferred income tax assets or liabilities
Deferred income tax asset and deferred income tax liability shall be recognized in accordance
with the difference (temporary difference) between the tax base and the account value of the
assets and liabilities. For the deductible loss that may be deducted by the reduction of income tax
in later years, the corresponding deferred income tax asset shall be recognized. For temporary
difference resulted from initial reorganization of assets or liabilities in non-enterprise-merger
transaction, which does not influence on accounting profit nor taxable income (or deductible loss),
the corresponding deferred income tax asset and deferred income tax liability shall not be
recognized. On the balance sheet date, deferred income tax asset and deferred income tax liability
shall be measured at the applicable tax rate during estimated recovery of the asset or settlement of
the liability.
The deferred income tax liabilities shall be recognized to the extent of the amount of the taxable
income which it is most likely to be obtained by the Group to deduct the deductible temporary
difference, deductible loss and taxes.
The deferred income tax asset and deferred income tax liability, resulted from temporary
difference related to the investments to the subsidiaries and joint ventures, shall be recognized.
However, the deferred income tax asset and deferred income tax liability, of which the Group can
control the time of the reverse of the temporary difference and the temporary difference are
unlikely reversed in an expectable future, shall not be recognized.
The deferred income tax asset and deferred income tax liability, which can meet the both
following conditions, shall be listed with the net amount after deduction:
The deferred income tax asset and deferred income tax liability relates to the income tax levied by
a same tax authority department on the Group as a whole taxpayer;47
In the Group, the taxpayer has the statutory right of estimating its current income tax assets and
current income tax liabilities by net amount.
22.3 Income tax expenses
It consists o f the current and the deferred income tax
In addition to the current and the deferred income tax related to the recognized consolidated
income and transaction or events directly reckoned into the shareholders’ equity, and the book
value of deferred income tax in the consolidation for the adjustment of business fame, the other
current and the deferred income tax are reckoned into the current gain/loss
22.4 Balance-out of income tax
If the Company has the legal right of the net settlement and intends to do the net settlement or the
assets obtaining and the liabilities payment at the same time, the current income assets and
liabilities is listed as the net balance.
If the Company has the legal right of the net settlement and the deferred income assets and
liabilities are related to the income tax by the same taxation department on the same taxation
object or the different one, and the objects intend to do the net settlement or the assets obtaining
and the liabilities payment at the same time, the deferred income tax assets and liabilities is listed
as the net balance.
23. Operation lease and financing lease
The financing lease is the one of the transfer of all risks or compensation of all related assets. The
ownership is transferred finally or not transferred. The other lease is the operation lease.
23.1 Lease business with the Company as the rentee
The rental is reckoned into the relevant assets cost or the current loss/gain in the linear way. The
initial direct expenses are reckoned into the current gain/loss, or the actual rental into the current
loss/gain.
23.2Lease business with the Company as the rentor
The rental is reckoned into the relevant assets cost or the current loss/gain in the linear way. The
initial direct substantive expenses are capitalized and reckoned into the current gain/loss, or the
actual rental into the current loss/gain. The initial direct small expenses are reckoned into the
current actual gain/loss, or the actual rental into the current loss/gain.
24. Staff emulation
The staff emulation is recognized as the liabilities in the accounting period of the supply of the
staff’s service.
Employee compensation mainly include wages, bonuses, allowances and subsidies, welfare
expenses for employees, social insurances, housing accumulation fund, labour union expenditure,
employee education expenses, and other expenditures related to acquisition of services provided
by employees. The relevant expenditure is reckoned into the assets cost or the current loss/gain.
The Group has established enterprise annuity fund plan, which is a defined contribution plan, or
the Group makes payment to related enterprise annuity fund account in a certain proportion to the
employees’ pay cost salaries, and the Group has not any statutory or deductive responsibility to
pay other fund except for the above payment. The above payment shall be reckoned in cost when
the responsibility of the payment comes into existence. The assets of enterprise annuity fund shall
be trusted by the annuity custodian with the qualification of a custodian, and shall be deposited48
separately from the Group’s assets. The payable employees’ compensation recognized during the
period of the employees rendering services shall be reckoned in the cost and expenses of the
related assets (dismissal benefits)
25. Debt restructures
The debts restructuring is events of recession according to the agreement with the debtor or the
legal judgment by the court under the financial difficulty.
25.1 Debts restructuring duties with the Company as the debtor
The difference between the book value of the restructuring liabilities and the cash actually paid is
reckoned into the current loss/gain. The difference between the book value of the restructuring
liabilities and the non-cash assets transferred is reckoned into the current loss/gain. The difference
between the fair value of the transferred assets and the book value is reckoned into the current
loss/gain. The difference between the fair value of the creditor’s stock and the book value is
reckoned into the current loss/gain. The eatup part of the book value from the cash, fair value of
the non-cash assets and the creditors’ equity is dealt with the above methods.
The debts restricting is events of recession according to the agreement between the creditor and
the debtor under financial difficulty.
25.2 Debts restructuring duties with the Company as the debtor
The difference between the book value of the restructuring liabilities and the cash received is
reckoned into the current loss/gain. The difference between the book value of the restructuring
liabilities and the non-cash assets is reckoned into the current loss/gain. The difference between
the fair value of the debtor’s stock and the book value is reckoned into the current loss/gain. The
eatup part of the book value from the cash, fair value of the non-cash assets and the shareholders’
equity is dealt with the above methods.
As for the restructuring debts accrued, the accrued eat sup the above difference; if is not enough
to eat up, the accrued is reckoned into the current gain/loss.
（III) Taxes
1. Main taxation items and its tax rate
Taxation
items Calculation bases Tax rare
VAT Balance of current output tax
deducting current input tax
Output tax calculated based on the 13% or
17% of the sales volume regulated by Tax
Law
Business tax Income of business 3% or 5%
City
maintenance
tax
VAT and business tax actually
paid 1%
Real estate
tax
Calculated by the original value
of real estate deducting 30%;
rent income of the real estate
1.2% for the remaining sum of real estate;
12% for the rent income of the real estate
Enterprise
income tax
(Note)
Taxable income 16.5% to 25%
Land VAT
Use-right transfer of state-owned
land, Value-added amount of
buildings and its attachments
Progressive tax rate of 4-degree ultra
filtration
Land-use tax
of town Land occupation actually area RMB 4.00 per Square meter
Note: Tax rate of the enterprise income tax for the Company and its subsidiaries are shown as follows:49
Name of the Company and its subsidiaries
Tax rate of enterprise income
tax
2010 2009
The Company 22% 20%
Shenzhen New Power Industrial Co., Ltd. (New Power) 22% 20%
Shennan Power Gas Turbine Engineering Technique Co.,
Ltd. (“Engineering Co.,) 22% 20%
Shenzhen Xiefu Fuel Supply Co., Ltd. (“Xiefu Fuel
Supply”) 22% 20%
Shennandian Environment Protection (“Environment Co.,”) 22% 20%
Zhongshan Power Grid 22% 20%
Weimei Power Grid 22% 20%
SHENNAN ENERGY (SINGAPORE) PTE LTD (“Shennan
Signapore”) 20% 20%
Zhongshan Shenzhong Real Estate Development Co., Ltd.
(“Shenzhong Development Co.,”) 25% 25%
Zhongshan Shenzhong Real Estate Investment Property Co.,
Ltd. (“Shenzhong Property Investment”) 25% 25%
Huidong Xiefu Harbour Comprehensive Development Co.,
Ltd. (“Huidong Xiefu Co.,”) 25% 25%
Huidong Harbour Development Co., Ltd. (“Huidong Harbour
Co.,) 25% 25%
HONG KONG SYNDISOME CO., LIMITED (“Syndisome
Co., ) 16.5% 16.5%
The Company, New Power, Engineering Co., Xiefu Fuel Supply and Environment Co., are the enterprise that
established in the special economic zone. Zhongshan Power Grid and Weimei Power Grid are the
foreign-investment enterprises that engaged in the manufacture of energy. The applicable income tax rate of the
abovementioned subsidiaries and the Company was 15% before 1 January 2008. Since 1 January 2008, the tax
rate will gradually turns to 25% in five years. The Company and abovementioned subsidiaries apply 22% tax
rate in the report period.
2. Taxes preferential and approvals
Tax
Name of
the
company
Relevant regulation and
policies basis
Approval
institution Approval documents Exemption range
Period of
validity
Enterpris
e income
tax
Weimei
Power Grid
Enterprise Income Tax Law of
People’s Republic of China
and Notice of Transition
Preferential Policy on
Enterprise Income Tax from
State Council. (State
IssueNo.39 [2007])
Inapplicable Inapplicable Two years
free-tax and three
years half-taxes
on enterprise
income tax since
2008.
2008.1.1~20
12.12.31
Enterpris
e income
tax
Zhongshan
Power Grid
Enterprise Income Tax Law of
People’s Republic of China
and Notice of Transition
Preferential Policy on
Enterprise Income Tax from
State Council. (State
IssueNo.39 [2007])
Inapplicable Inapplicable Two years
free-tax and three
years half-taxes
on enterprise
income tax since
2008.
2008.1.1~20
12.12.3150
(IV) Enterprise merger and Consolidated Financial Statement
1. Subsidiaries obtained through establishment or investment
Unit: RMB
Full name of the
subsidiaries
Type of
subsidiaries
Regist
er
place
Busines
s nature
Register
capital Business scope
Actually
invested
capital at
period-end
Other
item
balance
of net
investm
ent
towards
subsidia
ries
Propo
rtion
share
s held
(%)
Prop
ortio
n of
voti
ng
right
(%)
Con
soli
date
d
state
men
t
Yes/
No
Equity of
minority
shareholders
Counteracte
d amount in
minority
shareholders
’ equity to
gains/losses
of minority
shareholders
the eat-up part from
the parent company's
owners' equity of the
balance between the
subsidiary's
shareholders' loss
shares less their
equity shares at
Period-beginning
Xiefu Fuel
Supply Co.,
(note)
Limited
Liability
Shenzh
en Trading 53,300,000.00
Self-business of
fuel and agent for
import-export
26,650,000.00 - 50 50 Yes 40,030,374.80 N/A N/A
New Power Co.,
Jointed
enterprise(H.
K-capital)
Shenzh
en
Power
generati
on
113,850,000.0
0
Technical
development on
wasted-heat usage,
power generation
by wasted-heat
and fuel power
113,850,000.00 - 100 100 Yes - N/A N/A
Zhongshan
Power Grid
Jointed
enterprise(H.
K-capital)
Zhongs
han
Power
generati
on
396,800,000.0
0
Fuel power and
power generation
by wasted-heat
317,440,000.00 - 80 80 Yes -10,279,445.6
4
86,639,445.6
4 N/A
Engineering Co.,
Jointed
enterprise(H.
K-capital)
Shenzh
en
Engineer
ing
consultat
ion
10,000,000.00
technical
consultation and
relevant
maintenance and
inspection on
running equipments
for the union cycle
power station by
fuel gas and steam
13,520,000.00 - 100 100 Yes - N/A N/A
Weimei Power
Grid
Jointed
enterprise(H.
K-capital)
Dongg
uan
Power
generati
on
USD35,040,0
00
Establishment and
operation of natural
gas power station
208,102,049.76 - 70 70 Yes 129,030,986.7
9 N/A N/A
Environment
Co.,
Jointed
enterprise(H.
K-capital)
Shenzh
en
Engineer
ing 79,000,000.00
Sludge drying
79,000,000.00 - 100 100 Yes - N/A N/A
Huidong Xiefu
Co.,
Limited
Liability
Shenzh
en
Pier
operatio
n
8,620,000.00
Establishment and
operation of
comprehensive pier
and its affiliated
facilities
6,465,001.00 - 84 84 Yes - N/A N/A
Huidong Harbor
Co.,
Limited
Liability
Shenzh
en
Pier
operatio
n
10,000,000.00
Establishment and
operation of general
cargo pier, oil
product pier, oil
depot and affiliated
facilities
5,500,000.00 - 55 55 Yes - N/A N/A51
Note: the Company holds 50% equity of the Xiefu Fuel Supply, and occupied majority voting rights in Xiefu Fuel Supply. Therefore, collected Xiefu Fuel Supply into the
consolidated scope for actually controlling owned by the Company.52
2. Subsidiaries obtained through merger under no common control
Unit: RMB
Full name of
the
subsidiaries
Type
of
subsidi
aries
Regist
er
place
Business
nature
Register
capital Business scope
Actually
invested
capital at
period-end
Other item
balance of
net
investment
towards
subsidiarie
s
Proporti
on
shares
held (%)
Propo
rtion
of
votin
g
right
(%)
Consol
idated
statem
ent
Yes/No
Equity of
minority
shareholders
Counteracte
d amount in
minority
shareholders
’ equity to
gains/losses
of minority
shareholders
the eat-up part
from the parent
company's
owners' equity of
the balance
between the
subsidiary's
shareholders' loss
shares less their
equity shares at
Period-beginning
Shennan
Singapore
Co.,
Limite
d
Liabil
ity
Singap
ore Trading SGD
1,500,000.00
gas turbine and its
spares and fuel agents SGD1,500,000.
00 - 100 100 Yes - N/A N/A
Shenzhong
Development
Co.,
Limite
d
Liabilit
y
Zhongs
han
Real estate
developme
nt
177,800,000.0
0
real estate investment,
property management,
sales of self-owned
commercial houses,
rental and investment
- - 75 75 Yes 15,143,031.6
5
27,626,099.4
5 N/A
Shenzhong
Property
Investment”
Limite
d
Liabilit
y
Zhongs
han
Real estate
developme
nt
60,000,000.00
real estate investment,
property management,
sales of self-owned
commercial houses,
rental and investment
- - 75 75 Yes 18,136,587.5
7 N/A N/A
Syndisome
Co.,
Limite
d
Liabilit
y
Hong
Kong
Import-exp
ort trading
HKD
200,000.00
import-export trading
HKD200,000.0
0 - 100 100 Yes - N/A N/A53
(V) Notes to Consolidated Financial Statement
1. Monetary capital
Unit: RMB
June 30, 2010 December 31, 2009
Items Amount of foreign
currency
Exchange
Rate
Amount of RMB Amount of foreign
currency
Exchange
Rate
Amount of RMB
Cash:
RMB 184,675.71 1.0000 184,675.71 266,797.65 1.0000 266,797.65
HKD 92,656.91 0.8724 80,833.89 92,656.91 0.8805 81,584.41
USD 995.22 6.7909 6,758.44 11,719.87 6.8282 80,025.97
EUO 1,017.87 8.2710 8,418.80 1,017.87 9.7971 9,972.18
Bank savings:
RMB 365,207,178.75 1.0000 365,207,178.75 339,472,309.32 1.0000 339,472,309.32
HKD 5,404,235.70 0.8724 4,711,831.43 5,402,075.35 0.8805 4,756,578.07
USD 1,645,881.69 6.7909 11,179,890.56 1,593,047.44 6.8282 10,877,646.51
SGD 82,089.44 4.8351 396,910.65 50,660.87 4.8605 246,237.16
Other monetary capital: - -
RMB (Note) 23,289,498.84 1.0000 23,289,498.84 23,366,056.75 1.0000 23,366,056.75
USD 737.04 6.7909 5,005.16 716.53 6.8282 4,892.61
Total 405,071,002.22 379,162,100.63
Note: was the guarantee margin and credit card savings. As at 30 June 2010, the restrained margin
amounting to RMB 22,800,000.00(RMB 22,800,000 as at 31 December 2009).
2. Note receivable
Unit: RMB
Type 30 June 2010 31 December 2009
Commercial Acceptance Bill - 200,000.00
At the end of report period, the account paid in advance decrease 100% over year-begin, mainly caused by
the due of note receivable in this period.
3. Account receivable
(1) Account receivable classified according to types:
Unit: RMB
30 June 2010 31 December 2009
Balance at book Bad debt provision Balance at book Bad debt provision
Type Amount
Proportion
(%) Amount
Proportion
(%) Amount
Proportion
(%) Amount
Proportion
(%)
Significant single
amounts 359,553,884.85 98.57% 5,877,682.84 92.22% 341,562,735.75 98.69% 5,877,682.84 92.22%
Insignificant single
amounts with high
146,915.10 0.04% 146,915.10 2.30% 946,915.10 0.27% 306,915.10 4.82%54
portfolio risk after
combination
Other insignificant
amount 5,051,276.92 1.38% 349,164.00 5.48% 3,599,190.11 1.04% 189,164.00 2.97%
Total 364,752,076.87 100.00% 6,373,761.94 100.00% 346,108,840.96 100.00% 6,373,761.94 100.00%
The Group recognized account receivable with over RMB 2 million (RMB 2 million included) as significant
single amounts.
Age analysis of account receivable:
Unit: RMB
30 June 2010 31 December 2009
Age Amount
Proportion
(%)
Bad debt
provision Book value Amount
Proportion
(%)
Bad debt
provision Book value
Within
1year 344,883,431.67 94.55% - 344,883,431.67 322,237,306.76 93.10% - 322,237,306.76
1 to
2years 6,260,430.00 1.72% 363,021.50 5,897,408.50 7,358,317.76 2.13% 363,021.50 6,995,296.26
2 to
3years 1,891,640.00 0.52% 189,164.00 1,702,476.00 1,891,640.00 0.55% 189,164.00 1,702,476.00
Over 3
years 11,716,575.20 3.21% 5,821,576.44 5,894,998.76 14,621,576.44 4.22% 5,821,576.44 8,800,000.00
Total 364,752,076.87 100.00% 6,373,761.94 358,378,314.93 346,108,840.96 100.00% 6,373,761.94 339,735,079.02
(2) Withdrawal of bad debt provision for account receivable of insignificant single amount or minor mount
but exercising impairment test individually at period-end:
Unit: RMB
Content of account receivable Balance of Book
Withdrawal
amount of bad
debt provision
Withdrawal
proportion
(%) Reasons
Finance Bureau of Dongguan 137,535,551.96 - -
Guangdong Power Grid 201,091,683.55 - -
CHINA NATIONAL ELECTRIC
EQUIPMENT CORPORATION 6,260,430.00 363,021.50 5.80%
Difficult recover for
long age
Dongguan Dongxin Thermal Power
Co.,Ltd. 7,200,000.00 1,440,000.00 20.00%
Difficult recover for
long age
Shenzhen Petro-Chemical Bonded Oil
Trading Co., Ltd.(“Petro-Chemical
Co.,”) 3,474,661.34 3,474,661.34 100.00%
Difficult recover for
long age
Others 3,991,558.00 600,000.00 15.03%
Total 359,553,884.85 5,877,682.84 1.63%
(2) There are no account receivable of the shareholders who hold over 5 %( 5% included)
voting rights in report period.
(3)Top 5 companies in account receivables
Unit: RMB55
Name of the company
Relationship
between the
Company Amount Age
Proportion in total account
receivable (%)
Guangdong Power Grid Non-related client 201,091,683.55
Within 1
year 55.13%
Finance Bureau of Dongguan
Government
institution 137,535,551.96
Within 1
year 37.71%
Dongguan Dongxin Thermal Power Co.,Ltd. Non-related client 7,200,000.00 Over 3years 1.97%
CHINA NATIONAL ELECTRIC EQUIPMENT
CORPORATION Non-related client 6,260,430.00 1-2years 1.72%
Dongguan Tongming(Zhongming) Power Co.,
Ltd. Non-related client 2,008,100.00
Within 1
year 0.55%
Total 354,095,765.51 97.08%
4. Account paid in advance
(1) Account paid in advance classified according to age:
Unit: RMB
30 June 2010 31 December 2009
Age Amount Proportion (%) Amount Proportion (%)
Within 1year 3,274,922.49 62.32% 3,942,652.31 89.20%
1to 2years 1,665,448.37 31.69% 177,124.71 4.01%
2to 3years 18,304.20 0.35% 7,335.00 0.17%
Over 3 years 296,498.51 5.64% 292,758.00 6.62%
Total 5,255,173.57 100.00% 4,419,870.02 100.00%
(2)Top 5 companies in account paid in advance:
Unit: RMB
Name of the company
Relationship
between the
Company Amount Duration
Reasons for
unsettlement
Wuxi Shijia Thermal Equipment Co., Ltd.
Non-related
supplier 1,875,000.00
Within
1year
Purchase paid
in advance
GE-ENERGY(SINGAPORE)CO.,LTD
Non-related
supplier 1,209,846.37
Within
1year
Purchase paid
in advance
Hangzhou Boiler Group Co., Ltd.
Installation Branch
Non-related
supplier 564,000.00
Within
1year
Purchase paid
in advance
Nanjing Nangang Power Equipment
Installation Co., Ltd.
Non-related
supplier 473,400.00
Within
1year
Purchase paid
in advance
Zhongshan Transformer Co., Ltd.
Non-related
supplier 279,972.00
Within
1year
Purchase paid
in advance
Total 4,402,218.3756
(3)There are no account paid in advance of the shareholders who hold over 5 %( 5% included) voting rights
in report period.
(4)Account paid in advance classified according to types:
Unit: RMB
Type 30 June 2010 31 December 2009
Significant single amounts - -
Insignificant single amounts with high portfolio risk
240,802.71 292,758.00
Other insignificant amounts 5,014,370.86 4,127,112.02
Total 5,255,173.57 4,419,870.02
5. Other account receivable
（1） Other account receivable classified according to type:
Unit: RMB
30 June 2010 31 December 2009
Book amount Bad debt provision Book amount Bad debt provision
Type Amount
Proportion
(%) Amount
Proportion
(%) Amount
Proportion
(%) Amount
Proportion
(%)
Significant single
amounts 34,852,632.66 75.74% 26,237,404.46 87.68% 33,778,789.92 80.31% 26,237,404.46 87.68%
Insignificant single
amounts with high
portfolio risk
3,198,034.65 6.95% 2,927,761.85 9.78% 3,198,034.65 7.60% 2,927,761.85 9.78%
Other insignificant
amounts 7,963,809.80 17.31% 759,148.63 2.54% 5,082,783.33 12.08% 759,148.63 2.54%
Total 46,014,477.11 100.00% 29,924,314.94 100.00% 42,059,607.90 100.00% 29,924,314.94 100.00%
The Group recognized other account receivable with over RMB 2 million (RMB 2 million included) as
significant single amounts.
Other account receivable classified according to age:
Unit: RMB
30 June 2010 31 December 2009
Age Amount
Proportion
(%)
Bad debt
provision Book value Amount
Proportion
(%)
Bad debt
provision Book value
Within
1year 13,378,037.96 29.07% - 13,378,037.96 9,423,168.75 22.40% - 9,423,168.75
1to 2
years 81,091.50 0.18% - 81,091.50 81,091.50 0.19% - 81,091.50
2to 3
years 945,160.38 2.05% 759,148.63 186,011.75 1,919,785.41 4.56% 759,148.63 1,160,636.78
Over
3years 31,610,187.27 68.70% 29,165,166.31 2,445,020.96 30,635,562.24 72.84% 29,165,166.31 1,470,395.93
Total 46,014,477.11 100.00% 29,924,314.94 16,090,162.17 42,059,607.90 100.00% 29,924,314.94 12,135,292.9657
（2） Withdrawal of bad debt provision for other account receivable of insignificant single amount or
minor mount but exercising impairment test individually at period-end:
Unit: RMB
Content of other account
receivable Book balance
Withdrawal
amount of bad
debt provision
Withdrawal
proportion (%) Reasons
Huiyang Kangtai
Industrial Co., 14,311,626.70 14,311,626.70 100% Difficult recover for long age
Nanshan Investment Co., 5,895,738.00 5,895,738.00 100% Unrecovered for overdue
Shandong Jinan Power
Generation Equipment
Plant 3,560,000.00 3,560,000.00 100% Unrecovered for overdue
Individual income tax
disbursement 2,470,039.76 2,470,039.76 100% Unrecovered for overdue
Account receivable of
dormitory un-received 2,083,698.16 - 0%
Other 17,693,374.49 3,686,910.48 21%
Total 46,014,477.11 29,924,314.94 65%
Other account receivable of insignificant single amounts with high portfolio risk:
Unit: RMB
30 June 2010 31 December 2009
Book balance Book balance
Age Amount
Proportion
(%)
Bad debt
provision Amount
Proportion
(%)
Bad debt
provision
Over 3 years 3,198,034.65 100.00% 2,927,761.85 3,198,034.65 100.00% 2,927,761.85
The Group recognized other account receivable with insignificant single amount but has over 3 years as the
other account receivable of insignificant single amounts with high portfolio risk.
(3) There are no other account receivable of the shareholders who hold over 5 %( 5% included) voting rights
in report period.
(4) Top 5 companies in other account receivable
Unit: RMB
Name of the company
Relationship
between the
Company Amount Duration
Proportion in total other
account receivable(%)
Huiyang Kangtai Industrial
Co.,
Project
cooperation
party 14,311,626.70 Over 3 years 31.10%
Nanshan Investment Co.,
Project
cooperation
party 5,895,738.00 Over 3 years 12.81%58
Shandong Jinan Power
Generation Equipment Plant
Non-related
client 3,560,000.00 Over 3 years 7.74%
Individual income tax
disbursement Inapplicable 2,470,039.76 Over 3 years 5.37%
Account receivable of
dormitory un-received Inapplicable 2,083,698.16 Over 3 years 4.53%
Total 28,321,102.62 61.55%
(5) At the end of report period, other account receivable increased 33% over year-begin, mainly caused by
the pre-phase expenses in newly added projects.
6. Inventory
(1) Classification of inventory
Unit: RMB
30 June 2010 31 December 2009
projects Book balance
Depreciation
provision Book value Book balance
Depreciation
provision Book value
Fuels 165,038,996.36 4,745,614.13 160,293,382.23 181,757,093.38 4,745,614.13 177,011,479.25
Raw materials 151,678,073.14 11,481,059.43 140,197,013.71 155,641,091.81 11,481,059.43 144,160,032.38
Development cost
of real estate 1,088,962,791.16 45,603,631.85 1,043,359,159.31 1,069,137,310.41 45,603,631.85 1,023,533,678.56
Total 1,405,679,860.66 61,830,305.41 1,343,849,555.25 1,406,535,495.60 61,830,305.41 1,344,705,190.19
In the balance of inventory at period-end, amount for loan pledge totally to RMB 852,032,606.80(as at 31
December 2009: RMB 852,032,606.80).
In the balance of inventory at period-end, the capitalizing loan expenses amounting to RMB
104,367,536.83(as at 31 December 2009: RMB 84,943,517.90). The capitalizing rate was 5.31%.
(2)Depreciation provision of inventory
Unit: RMB
Decrease in this year
Inventory type
Book balance
at year-begin
Accruing amount at
this year Reversal Charge-off
Book balance
at period-end
Fuels 4,745,614.13 4,745,614.13
Raw materials 11,481,059.43 11,481,059.43
Development cost
of real estate 45,603,631.85 45,603,631.85
Total 61,830,305.41 61,830,305.4159
7. Investment for affiliated enterprises
Unit: RMB
The
Company
Voting
rights in
invested
company
30 June 2010 30 June 2010 30 June 2010
January-
June 2010
January- June
2010
Invested
company
Type of
company
Register
place
Legal
representative
Business
nature
Register
capital
Proportion
of share
holding (%)
Proportion
of voting
right held
by the
Company
(%)
Total assets Total liabilities
Total net
assts
Total income Net profit
Affiliated enterprises
Jiangxi CPI
Xinchang
Power
Generation
Co., Ltd.
(Jiangxi
Xinchang
for short)
Limited
Liability
Nanchang Ren Deqing
Thermal power
generation,
energy
management
and cascade
utilization,
engineering
consultation and
service of
electric
technology
trainings.
604,285,715.00 30 30 5,121,436,547.62 4,581,113,151.85 540,323,395.77 671,218,736.59 -107,439,627.5960
8. Long-term equity investment
Details of long-term equity investment:
Unit: RMB
Invested
company
Calculation
method
Initial
investment cost
Balance at
year-begin Increase/decrease(+,-)
Balance at
period-end
Proportion
of share
holding in
invested
company
(%)
Proportion
of voting
rights in
invested
company
(%)
Explanation on
the incongruity
in share
holding
proportion and
voting
proportion in
invested
company
Impairment
provision
Impairment
provision of
accruing this
year
Cash
bonus
this
year
Jaingxi
Xinchang Co.,
Equity
method 196,285,715.00 186,186,050.41 -9,089,031.28 177,097,019.13 30 30 - - - -
Petro-Chemical
Co., Cost method 2,500,000.00 2,500,000.00 2,500,000.00 4 4 - 2,500,000.00 - -
Wannneg
Tongling Power
Generation Co.,
Ltd. Cost method 54,095,400.00 54,095,400.00 54,095,400.00 2.83 2.83 - 19,317,300.00
Shenzhen
Energy
Environment
Co., Ltd. Cost method 41,790,000.00 41,790,000.00 41,790,000.00 10 10 - -
CPI Jiangxi
Nuclear Power
Co., Ltd. Cost method 37,315,000.00 37,315,000.00 37,315,000.00 5 5
Total 294,671,115.00 284,571,450.41 28,225,968.72 312,797,419.13 21,817,300.009. Investment real estate
Unit: RMB
Item
Book balance at
year-begin Increased this year
Decreased this
year
Book balance at
period-end
I. Total original book value 14,954,637.09 - - 14,954,637.09
1. House, buildings 14,954,637.09 - - 14,954,637.09
2. Land-use right - - - -
II. Total accumulated depreciation
and accumulated amortization 6,403,726.20 339,133.20 - 6,742,859.40
1. House, buildings 6,403,726.20 339,133.20 - 6,742,859.40
2. Land-use right - - - -
III. Total net book value of
investment real estate 8,550,910.89 -339,133.20 - 8,211,777.69
1. House, buildings 8,550,910.89 -339,133.20 - 8,211,777.69
2. Land-use right - - - -
IV. Total depreciation provision
of investment real estate - - - -
1. House, buildings - - -
2. Land-use right - - - -
V. Total book value of investment
real estate 8,550,910.89 - - 8,211,777.69
1. House, buildings 8,550,910.89 - - 8,211,777.69
2. Land-use right - - - -
10. Fixed assets
(1) Change of fixed assets
Unit: RMB
Items Book balance at
year-begin Increased this year Decreased this year
Book balance at
period-end
I. Total original book value: 4,157,165,820.57 2,539,358.47 6,498,500.00 4,153,206,679.04
Including: House and buildings 445,152,484.64 45,000.00 - 445,197,484.64
Machinery equipment 3,615,790,267.15 1,785,017.05 6,480,100.00 3,611,095,184.20
Transportation means 33,114,720.80 493,890.60 - 33,608,611.40
Other equipment 63,108,347.98 215,450.82 18,400.00 63,305,398.80
II. Total accumulated
depreciation: 1,842,669,766.36 86,195,889.36 1,210,705.11 1,927,654,950.61
Including: House and buildings 166,461,252.85 8,628,624.88 - 175,089,877.73
Machinery equipment 1,599,771,466.58 75,102,139.46 1,210,705.11 1,673,662,900.93
Transportation means 26,556,112.77 1,156,823.32 - 27,712,936.09
Other equipment 49,880,934.16 1,308,301.70 - 51,189,235.86
III. Total net book value of 2,314,496,054.21 - - 2,225,551,728.43fixed assts
Including: House and buildings 278,691,231.79 - - 270,107,606.91
Machinery equipment 2,016,018,800.57 - - 1,937,432,283.27
Transportation means 6,558,608.03 - - 5,895,675.31
Other equipment 13,227,413.82 - - 12,116,162.94
IV. Total impairment provision 28,328,133.00 - 36,774.82 28,291,358.18
Including: House and buildings 26,617,378.45 - - 26,617,378.45
Machinery equipment 1,446,500.82 - 36,774.82 1,409,726.00
Transportation means 85,146.84 - - 85,146.84
Other equipment 179,106.89 - - 179,106.89
V. Total book value of fixed
assts 2,286,167,921.21 - - 2,197,260,370.25
Including: House and buildings 252,073,853.34 - - 243,490,228.46
Machinery equipment 2,014,572,299.75 - - 1,936,022,557.27
Transportation means 6,473,461.19 - - 5,810,528.47
Other equipment 13,048,306.93 - - 11,937,056.05
(2)Temporary stranded fixed assets
Unit: RMB
Items Original book
value
Accumulated
depreciation
Impairment
provision
Net book value
Amount at period-begin: 8,395,863.99 1,292,090.22 1,446,500.39 5,657,273.38
Including: Machinery
equipment 8,395,863.99 1,292,090.22 1,446,500.39 5,657,273.38
Amount at period-end: 1,909,688.99 244,042.41 1,409,725.57 255,921.01
Including: Machinery
equipment 1,909,688.99 244,042.41 1,409,725.57 255,921.01
(3)Fixed assets with un-finished property certificate
Unit: RMB
items Original value Net value Reason for un-finished
property certificate
Prediction of the
property certificate
finished
Booster station 11,416,072.09 8,647,156.82
Steam turbine plant 4,221,136.27 3,265,956.04
Chemical water
building 7,050,395.16 5,417,402.86
Treatment plant of
residue 1,357,924.60 1,052,612.51
Pump house of fireprotection
709,475.99 549,663.15
Recycle pump house 4,487,508.99 3,464,690.24
Acceptance of project
completion still in
process
Mid-term of 2011Comprehensive
building 7,076,356.29 5,654,717.69
Production
maintenance building 9,860,653.25 8,668,006.29
Administration
building 10,138,618.59 8,912,170.99
Total 56,318,141.23 45,632,376.59
11. Project in construction
(1) Particulars about projects in construction:
Unit: RMB
2010-6-30 2009-12-31
Item
Book
balance
Provision for
devaluation
Book net
amount
Book
balance
Provision for
devaluation
Book net
amount
Oil to Gas Works
81,265,
338.02 14,036,855.79
67,228,4
82.23
69,715,
999.71 14,036,855.79
55,679,1
43.92
Comprehensive building
projects of recycling
economy
20,196,
664.80 -
20,196,6
64.80
8,421,7
48.20 -
8,421,74
8.20
Heat and power projects of
recycling economy
6,292,5
09.81 -
6,292,50
9.81
5,688,9
19.20 -
5,688,91
9.20
Equipment Improvement
Project
10,761,
429.51 -
10,761,4
29.51
9,367,9
13.34 -
9,367,91
3.34
Cogeneration of heat and
electricity Project
8,614,1
61.55 -
8,614,16
1.55
8,133,1
87.26 -
8,133,18
7.26
Technical transformation
projects
2,059,5
16.44 -
2,059,51
6.44
2,022,2
11.25 -
2,022,21
1.25
Sludge drying project 117,598
,768.82 -
117,598,
768.82
111,423
,167.31 -
111,423,
167.31
Others 3,263,6
69.19 -
3,263,66
9.19
2,890,2
94.84 -
2,890,29
4.84
Total 250,052
,058.14 14,036,855.79
236,015,
202.35
217,663
,441.11 14,036,855.79
203,626,
585.32(2) Changes of significant projects in construction
Unit: RMB
Item
Budget
Number
2009-12-31-
Increase of
this year
Transferred
fixed assets
Other
decrease
Proportion
of project
investment
in budget
(%)
Project
progress
Accumulated
amount of
interest
capitalization
Including:
interest
capitalization
of this year
Source of
capital
2010-6-30-
Balance
Oil to Gas Works
153,200,000.00 69,715,999.71 11,549,338.31 - - 53.05% 53.05% 311,059.50
Self-financing
and loan
81,265,338.02
Comprehensive
building projects of
recycling economy
35,000,000.00 8,421,748.20 11,774,916.60 - - 57.70% 57.70% Self-financing 20,196,664.80
Heat and power
projects of recycling
economy
30,000,000.00 5,688,919.20 603,590.61 - - 20.98% 20.98% Self-financing 6,292,509.81
Equipment
Improvement Project
- 9,367,913.34 1,393,516.17 - - - - Self-financing 10,761,429.51
Cogeneration of heat
and electricity Project
45,700,000.00 8,133,187.26 480,974.29 - - 18.85% 18.85% 395,111.00
Self-financing
and loan
8,614,161.55
Technical
transformation
projects
6,648,000.00 2,022,211.25 37,305.19 - - 30.98% 30.98% 111,343.58
Self-financing
and loan
2,059,516.44
Sludge drying project
346,337,000.00 111,423,167.31 6,175,601.51 - - 33.96% 33.96% 8,016,189.36 1,660,992.50
Self-financing
and loan
117,598,768.82
Others - 788,490.99 643,536.56 - - Self-financing 1,432,027.55
Total 215,561,637.26 32,658,779.24 - - 248,220,416.50(3) Provision for devaluation of projects in construction
Unit: RMB
Item 2009-12-31 Increase of this year
Decrease of this
year
2010-6-30
Reason for
accruing
Oil to gas project 14,036,855.79 - - 14,036,855.79
Total 14,036,855.79 - - 14,036,855.7912. Disposal of fixed assets
Unit: RMB
Item 2009-12-31 2010-6-30 Reason for transferring to disposal
Power from left
heat equipment 5,875,631.20 5,875,631.20
Has signed disposal contract, still in disposing stage,
not dealt completely
Units and
ancillary
facilities - -6,017,379.93 Have been auctioned, but still not dealt completely
Total 5,875,631.20 -141,748.73
13. Intangible assets
Unit: RMB
Item
Book balance at
period-begin
Increase of this
year
Decrease of this
year
Book balance at
period-end
I. Total book original value 86,523,977.29 - - 86,523,977.29
Including: land use right 86,288,069.88 - - 86,288,069.88
Software 235,907.41 - - 235,907.41
II. Total accumulated
amortization 23,220,724.99 1,382,314.19 - 24,603,039.18
Including: land use right 23,058,358.88 1,358,466.96 - 24,416,825.84
Software 162,366.11 23,847.23 - 186,213.34
III. Total net value of
Intangible assets 63,303,252.30 61,920,938.11
Including: land use right (Note
5) 63,229,711.00 61,871,244.04
Software 73,541.30 - 49,694.07
IV. Total provision for
devaluation 5,115,063.71 - - 5,115,063.71
Including: land use right 5,115,063.71 - - 5,115,063.71
Software - - - -
V. Total book value of
intangible assets 58,188,188.59 - 56,805,874.40
Including: land use right 58,114,647.29 - 56,756,180.33
Software 73,541.30 - - 49,694.07
14. Long-term expense prepaid
Unit: RMB
Item 2009-12-31-
Increase
amount
of this
year
Amortization
amount of this
year
Other
decrease
amount 2010-6-30
Other
reason for
decrease
Improvements expenses of
fixed assets from operating
lease 465,561.90 - 105,900.48 - 359,661.42
Not
applicable15. Deferred income tax assets
Unit: RMB
Item 2010-6-30 2009-12-31
Deferred income tax assets:
Provision for bad debts of accounts receivable 1,265,274.86 1,265,274.86
Other provision for bad debts of accounts
receivable 5,660,976.83 5,660,976.83
Provision for inventory devaluation 2,754,958.61 2,754,958.61
Staff salary payable 6,615,681.71 6,615,681.71
Provision for devaluation of long-term equity
investment 4,227,197.41 4,227,197.41
Other 85,752.83 85,752.83
Total 20,609,842.25 20,609,842.25
16. Particulars about provision for assets devaluation
Unit: RMB
Decrease of this year
Item
Book balance at
period-begin
Increase of
this year Rewind Resellers
Book balance
oat period-end
I. Provision for bad debts 36,298,076.88 - - - 36,298,076.88
II. Provision for inventory
devaluation 61,830,305.41 - - - 61,830,305.41
III. Provision for devaluation
of long-term equity
investment 21,817,300.00 - - - 21,817,300.00
IV. Provision for fixed assets
devaluation 28,328,133.00 - - 36,774.82 28,291,358.18
V. Provision for projects in
construction 14,036,855.79 - - - 14,036,855.79
VI. Provision for intangible
assets devaluation 5,115,063.71 - - - 5,115,063.71
Total 167,425,734.79 - - 36,774.82 167,388,959.97
17. Short-term loan
Unit: RMB
Item 2010-6-30 2009-12-31
Pledge loan 572,000,000.00 770,000,000.00
Credit loan 2,200,000,000.00 1,649,120,000.00
Total 2,772,000,000.00 2,419,120,000.00
18. Notes payable
Unit: RMB
Category 2010-6-30 2009-12-31
Commercial acceptance bill - 45,960,000.00Bank acceptance bill - 22,250,216.75
Total - 68,210,216.75
Notes payable of the period-end decreased by 100% compared to the one at the beginning of the year, mainly
due to that the notes payable have been due.
19. Accounts payable
(1) Particulars about accounts payable is as follow:
Unit: RMB
Item 2010-6-30 2009-12-31
CNOOC Gas and Power Group Guangdong
Trading Branch 97,925,844.53 -
CNOOC Gas and Power Group Guangdong 36,721,289.43 -
Dongguan Dongbao Energy Co., Ltd. 31,027,715.69 -
Shenzhen Nangang Power Engineering Co., Ltd. 12,080,512.82 16,862,052.29
Shenyang Lifa Heat Turbine Equipment Co.,
Ltd. - 1,775,717.00
Wuhan Gangqi Power Co., Ltd. - 1,420,000.00
Nanjing Jinyanxin Technology Industrial Co.,
Ltd. - 403,200.00
Huasheng Filter(Shenzhen) Co., Ltd. 161,569.23 374,800.00
Others 1,226,513.77 110,173.26
Total 179,143,445.47 20,945,942.55
(2) Accounts payable in this reporting period exclude payments for shareholders whose 5% (including 5%)
voting right equity was held by the Company.
(3) There exists no notes payable with above 1 year account age in the group.
(4) Accounts payable at the end of reporting period increased by 755% compared to the one at year-begin,
mainly due to increased fuel accounts payable.
20. Accounts received in advance
(1) Particulars about accounts received in advance
Unit: RMB
Item 2010-6-30 2009-12-31
Project accounts received in advance 1,392,125.87 524,000.00
Fuel accounts received in advance - 65,000.00
Margin for construction safety of units disposal 300,000.00 -
Total 1,692,125.87 589,000.00
(2) Accounts received in advance in this reporting period exclude payments from shareholders whose 5%
(including 5%) voting right equity was held by the Company.
(3) Accounts received in advance at reporting period-end increased by 187% compared to the one at
year-begin, mainly due to increased projects accounts.21. Staff salary payable
Unit: RMB
Item Book balance at
year-begin
Increase of this
year
Decrease of
this year
Book balance at
period-end
I. Salary, bonus, grants and
subsidies
29,972,433.98 42,491,565.00 44,705,075.26 27,758,923.72
II. Welfare fees for staffs 0.00 27,495.98 27,495.98 0.00
III. Social insurance premium 786,758.37 1,687,528.32 1,236,663.08 1,237,623.61
Including: medical insurance 136,049.33 282,703.97 269,504.16 149,249.13
Old-age insurance 591,991.00 1,254,888.78 873,340.21 973,539.56
Unemployment
insurance
20,179.19 50,609.59 32,491.83 38,296.94
Work injury insurance 38,538.85 75,938.21 50,857.65 63,619.41
Maternity insurance 0.00 23,387.78 10,469.22 12,918.56
IV. Housing fund 1,747,767.86 3,253,384.32 3,198,443.00 1,802,709.18
VI. Union funds and
employee education
expenses
1,586,952.32 1,056,880.46 541,685.30 2,102,147.48
VI. Annuity 11,113,100.00 2,266,165.98 0.00 13,379,265.98
VII. Others 6,645.71 38,101.00 38,101.00 6,645.71
Total 45,213,658.24 50,821,121.06 49,747,463.62 46,287,315.68
22. Tax payable
Unit: RMB
Item 2010-6-30 2009-12-31
Value-added tax -450,427,700.51 -423,426,673.59
Operating tax 1,282,023.88 4,841,923.21
Corporate Income Tax 195,307.95 13,865,574.77
Personal Income Tax 1,394,765.22 1,389,494.34
Land use fees 368,014.80 -
LAT - 1,156,140.00
Real Estate Tax 1,375,908.93 1,474,480.07
Others 70,274.33 557,566.77
Total -445,741,405.40 -400,141,494.43
23. Interest payable
Unit: RMB
Item 2010-6-30 2009-12-31
Long-term loan interest with principal of
installed interest payment and due repayment of - 292,387.50seed capital
Interest payable of short-term loan 2,592,874.75 2,829,177.00
Total 2,592,874.75 3,121,564.50
24 Other accounts payable
(1). Particulars about other accounts payable:
Unit: RMB
Item 2010-6-30 2009-12-31
Zhongshan Xingzhong Group Co.,
Ltd.(“Xingzhong Group’) (Note1) 209,214,951.59 204,351,945.66
Zhongshan Finance Bureau (Note 2) 70,608,365.62 76,959,519.80
Project expense 14,597,848.27 24,247,488.14
Insurance premium 7,499,090.03 10,681,774.93
Grants for Board of Directors 2,327,385.60 3,998,889.25
Zhongshan Guangzhong Investment Co.,
Ltd.(“Guangzhong Investment Company) - 1,567,958.00
Temporary income from options contracts 14,197,480.00 14,329,299.79
Others 18,705,096.42 17,658,778.77
Total 337,150,217.53 353,795,654.34
Note 1: Accounts and interests borrowing from Xinzhong Group which took the land use right owned by
Shenzhong Development Company as loan collateral.
Note 2: Accounts and interests borrowing from Zhongshan Finance Bureau by Shenzhong Development
Company
(2) Condition of balance of other accounts payable in this reporting period of units which held 5% (including
5%) voting right equity of the Company
25. Non-current liabilities due within one year
(1) Particulars about non-current liabilities due within one year:
Unit: RMB
Items 2010-6-30- 2009-12-31-
Long-term loan due within 1 year - 200,000,000.00
Total - 200,000,000.00
(2) Particulars about long-term loan due within one year:
Unit: RMB
Items 2010-6-30 2009-12-31
Guarantee loan - 90,000,000.00
Credit loan - 110,000,000.00
Total - 200,000,000.0026. Long-term loan
(1) Category of long-term loan
Unit: RMB
Items 2010-6-30 2009-12-31
Pledge loan 200,000,000.00 156,000,000.00
Credit loan 56,000,000.00 -
Total 256,000,000.00 156,000,000.00
(2) Top 5 units with largest long-term loan
Unit: RMB
Commencement
date of loan
Ending date
of loan
2010-6-30
Credit units
Currency
Rate (%) Amount of
foreign
currency
Amount of local
currency
Huaxia Bank,
Shenzhen
Branch
2010.2.1 2012.2.1 RMB 4.86 100,000,000.00
Huaxia Bank,
Shenzhen
Branch
2009.9.1 2011.9.1 RMB 4.86 100,000,000.00
Xingye Bank,
Shenzhen
Branch
2008.10.27 2013.10.27 RMB 6.18 10,000,000.00
China
Merchants
Bank, Jingtian
Branch
2009.11.6 2017.11.6 RMB 5.35 46,000,000.00
Total 256,000,000.00
(3) Accounts received in advance at reporting period-end increased by 64% compared to the one at
year-begin, mainly due to increased loan.
27. Other non-current liabilities
Unit: RMB
Items Book balance at period-end
Book balance at
period-beginning
Treasury subsidies 5,100,000.00 3,600,000.00
Support fund of cycle economy 250,000.00 250,000.00
Total 5,350,000.00 3,850,000.0028. Share capital
Unit: RMB
Change of this year
Items Amount at
period-begin
Bonus
issue Others Subtotal
Amount at
period-end
Year 2010:
I. Shares with selling
restriction
1. Holding shares of
State 1 - -
2. Holding shares of
State-owned legal person - -
3. Other domestic shares 12,993.00 12,993.00
4. Shares with foreign
ownership - -
Total shares with selling
restriction 12,993.00 12,993.00
II. Shares without selling
restriction
1. RMB ordinary
shares 338,895,157.00 338,895,157.00
2. Domestically listed
foreign shares 263,854,446.00 263,854,446.00
3. Overseas listed
foreign shares - -
4. Others - -
Total shares without
selling restriction 602,749,603.00 602,749,603.00
III. Total shares 602,762,596.00 602,762,596.00
Year 2009:
I. Shares with selling
restriction
1. Holding shares of
State 1 - - - - -
2. Holding shares of
State-owned legal person 105,372,440.00 -
-105,372,440.
00
-105,372,440.
00 -
3. Other domestic shares 12,993.00 - - - 12,993.00
4. Shares with foreign
ownership - - - - -
Total shares with selling
restriction 105,385,433.00 -
-105,372,440.
00
-105,372,440.
00 12,993.00
II. Shares without sellingrestriction
3. RMB ordinary
shares 233,522,717.00 -
105,372,440.0
0
105,372,440.0
0 338,895,157.00
4. Domestically listed
foreign shares 263,854,446.00 - - - 263,854,446.00
3. Overseas listed
foreign shares - - - - -
4. Others - - - - -
Total shares without
selling restriction 497,377,163.00 -
105,372,440.0
0
105,372,440.0
0 602,749,603.00
III. Total shares 602,762,596.00 - - - 602,762,596.00
29. Capital Surplus
Unit: RMB
Items Amount of year-begin Increase of this
year
Decrease of
this year
Amount of
period-end
Year 2010:
Capital premium 233,998,444.00 - - 233,998,444.00
Including: invested
capital by investors 215,487,650.42 - - 215,487,650.42
Difference arising from
purchasing equity of
minority shareholders 18,510,793.58 - - 18,510,793.58
Other capital surplus 129,631,483.51 - - 129,631,483.51
Including: transferring
from capital surplus in
original system 129,631,483.51 - - 129,631,483.51
Total 363,629,927.51 - - 363,629,927.51
Year 2009:
Capital premium 233,998,444.00 - - 233,998,444.00
Including: invested
capital by investors 215,487,650.42 - - 215,487,650.42
Difference arising from
purchasing equity of
minority shareholders 18,510,793.58 - - 18,510,793.58
Other capital surplus 129,631,483.51 - - 129,631,483.51
Including: transferring
from capital surplus in
original system 129,631,483.51 - - 129,631,483.51
Total 363,629,927.51 - - 363,629,927.51
30. Surplus reserves Unit: RMB
Items Amount of year-begin Increase of this
year
Decrease of
this year
Amount of
period-endYear 2010:
Legal surplus reserve 310,158,957.87 - - 310,158,957.87
Discretionary surplus
reserve 22,749,439.73 - - 22,749,439.73
Total 332,908,397.60 - - 332,908,397.60
Year 2009:
Legal surplus reserve 310,158,957.87 - - 310,158,957.87
Discretionary surplus
reserve 22,749,439.73 - - 22,749,439.73
Total 332,908,397.60 - - 332,908,397.60
31. Retained profit
Unit: RMB
Items Amount
Proportion of extraction or
distribution
Year 2010:
Undistributed profit at year-begin 547,986,755.29
Add: net profit attributable to shareholders
of parent company
-255,073,535.78
Undistributed profit at period-end 292,913,219.51
Year 2009:
Undistributed profit at year-begin 473,871,306.65
Add: net profit attributable to shareholders
of parent company
74,115,448.64
Undistributed profit at period-end 547,986,755.29
32. Operating income, operating cost
(1) Operating income
Unit: RMB
Items Jan-Jun of 2010 Jan-Jun of 2009
Main business income 701,624,196.24 877,763,484.19
Other business income 1,235,478.37 890,506.14
Operating cost 1,003,249,405.69 861,187,994.60
(2) Main business (sub-industry)
Unit: RMB
Jan-Jun of 2010 Jan-Jun of 2009
Industry
Operating
income
Operating cost Operating
income
Operating cost
Energy Industry 695,703,196.24 998,624,839.08 875,862,494.19 856,434,905.67
Engineering labors and
services
5,921,000.00 3,808,437.37 1,900,990.00 4,163,383.50Other income - - - -
Total 701,624,196.24 1,002,433,276.45 877,763,484.19 860,598,289.17
(3) Main business (sub-products)
Unit: RMB
Jan-Jun of 2010 Jan-Jun of 2009
Industry
Operating income Operating cost Operating
income
Operating cost
Electricity sales 690,711,341.40 991,958,211.09 871,479,770.56 849,871,615.61
Heat sales 4,991,854.84 6,666,627.99 4,382,723.63 6,563,290.06
Engineering labors and
services 5,921,000.00 3,808,437.37 1,900,990.00 4,163,383.50
Other income - - - -
Total 701,624,196.24 1,002,433,276.45 877,763,484.19 860,598,289.17
(4) Main business (sub-region)
Unit: RMB
Jan-Jun of 2010 Jan-Jun of 2009
Region
Operating income Operating cost Operating
income
Operating cost
Domestic 701,624,196.24 1,002,433,276.45 877,763,484.19 860,598,289.17
Overseas - - - -
Total 701,624,196.24 1,002,433,276.45 877,763,484.19 860,598,289.17
(5) Condition of operating income of top 5 clients
Unit: RMB
Clients Operating income
Proportion in total
operating income (%)
Guangdong Power Grid Shenzhen Power
Supply Bureau
687,634,417.62 97.83%
China Tianchen Engineering Corporation 5,320,000.00 0.76%
Shenzhen Zhonglian Silk Co., Ltd. 1,325,762.63 0.19%
Shenzhen Fengdan Industrial Co., Ltd. 891,384.05 0.13%
Zuohao Fashion(Shenzhen) Co., Ltd. 729,352.53 0.10%
Total 695,900,916.83 99.01%
33. Operating tax and additionUnit: RMB
Items
Jan-Jun of 2010 Jan-Jun of 2009 Calculate and pay
the standard
Operating tax 2,545,108.31 3,051,656.72
3% or 5% of
taxable income
Urban maintenance and construction
tax
340,332.20 413,384.44 1%
Others 86,029.71 59,432.32
total 2,971,470.22 3,524,473.48
34. Investment income
(1) Particulars about investment income
Unit: RMB
Items Jan-Jun of 2010 Jan-Jun of 2009
Long-term equity investment income
calculated by cost method
- -
Long-term equity investment income
calculated by equity method
-32,231,888.28 -
Total -32,231,888.28 -
(2) Long-term equity investment income calculated by equity method
Unit: RMB
Invested units
Jan-Jun of 2010 Jan-Jun of 2009 Reason for increase and
decrease of this year compared
to the one of last year
Jiangxi Xinchang Company
-32,231,888.28 -
Being in process of
pre-construction at the same
time of last year
35. Non-operating income
Unit: RMB
Items Jan-Jun of 2010 Jan-Jun of 2009
Total gains and loss of disposal of
non-current assets
- 106,019.60
Including: gains and loss of disposal of
fixed assets
- 106,019.60
Subsidies income of Shenzhen fuel
(gas) power
- 33,062,431.00Subsidies income of fuel processing fee 139,518,326.56 145,945,731.36
Import natural gas tax revenues 31,621,243.63 -
Others 280,075.79 1,141,951.20
Total 171,419,645.98 180,256,133.16
36. Non-operating expense
Unit: RMB
Items Jan-Jun of 2010 Jan-Jun of 2009
Gains and loss of disposal of fixed
assets
1,840.00 4,271.00
Others 30,020.00 51,799.37
Total 31,860.00 56,070.37
37. Income tax expense
Unit: RMB
Items Jan-Jun of 2010 Jan-Jun of 2009
Current income tax calculated according
to Tax Law and relevant regulations
687,530.22 270,103.78
38． Calculation process of basic income per share and diluted income per share
Calculating basic income per share, the profit attributable to shareholders of parent company:
Unit: RMB
Items Jan-Jun of 2010 Jan-Jun of 2009
Current net profit attributable to
shareholders of parent company -255,073,535.78 60,961,656.20
Including: net profit attributable to
constant operation -255,073,535.78 60,961,656.20
Net profit attributable to ending operation - -
Calculating basic income per share, denominator is weighted average number of general shares externally
issued. The calculation process is as follow:
Unit: share
Items Year 2010 Year 2009
Share amounts of externally issued general
shares at year-begin
602,762,596 602,762,596
Add: weight amounts of general shares
issued in this year
- -
Less: weight amount of general shares
repurchased
- -
Weight amount of general shares externally
issued at period-end
602,762,596 602,762,596Income per share
Unit: RMB
Items Jan-Jun of 2010 Jan-Jun of 2009
Calculating according to net profit attributable to
shareholders of parent company:
Basic income per share -0.42 0.10
Diluted income per share Not applicable Not applicable
Calculating according to net profit of constant
operation attributable to shareholders of parent
company:
Basic income per share -0.42 0.10
Diluted income per share Not applicable Not applicable
Calculating according to net profit of ending
operation attributable to shareholders of parent
company:
Basic income per share Not applicable Not applicable
Diluted income per share Not applicable Not applicable
39. Statement on items of cash flow sheet
(1) Other received cash related to operating activities
Unit: RMB
Items Jan-Jun of 2010 Jan-Jun of 2009
Received import tax refund of natural gas 31,621,243.63 -
Subsidies income for fuel power in
Shenzhen
- 25,681,331.00
Received government subsidies and bonus - 3,835,000.00
Others 3,898,352.25 7,276,461.07
Total 35,519,595.88 36,792,792.07
(2) Other payments of cash related to operating activities
Unit: RMB
Items Jan-Jun of 2010 Jan-Jun of 2009
Expense for engaging intermediaries 2,342,529.31 5,681,474.46
Expense for Board of Directors 2,855,342.30 2,685,866.84
Lease fees 3,032,322.00 3,410,630.37
Communication fees 2,418,347.60 3,121,351.26
Fleet costs 2,047,506.44 2,490,791.83
Corporation culture costs 706,633.80 615,286.36
Telecommunication costs 436,080.02 726,316.77
Environment costs 4,920,055.50 1,730,946.39Early expense of recycle economy 529,017.06 4,496,536.87
Payment for disposal tax of terminal
depot by agent buyer 4,083,659.00 -
Payment for loans of Finance Bureau by
Shenzhong Development 7,772,394.67 -
Compensation for settlement of staffs of
Zhongshan Guangzhong 1,567,958.00 -
Others 11,089,103.51 6,916,864.19
Total 43,800,949.21 31,876,065.34
40. Supplementary information of cash flow sheet
(1) Supplementary information of cash flow sheet
Unit: RMB
Supplementary information Jan-Jun of 2010 Jan-Jun of 2009
I. Operating activities cash flow transferred from net
profit:
Net profit -271,621,049.64 74,971,739.42
Add: provision for assets devaluation - -
Fixed assets depreciation 86,122,666.82 78,812,328.47
Intangible assets amortization 1,382,426.86 2,147,434.89
Amortization of long-term prepaid accounts 105,900.48 257,759.43
Loss (gains) of disposal of fixed assets, intangible assets
and other long-term assets
-1,630.00 -101,748.60
Loss from scrap of fixed assets - -
Finance expense (income)) 81,955,864.98 63,962,853.91
Investment loss (income) 32,231,888.28 -
Decrease of deferred income tax assets (increase) - -
Decrease of inventory (increase) 19,925,834.63 28,997,619.56
Decrease of operating accounts receivable (increase) -77,533,696.33 169,949,366.86
Decrease of operating accounts payable (increase) 60,089,551.69 -395,904,220.17
Others - -
Net amount of cash flow arising from operating activities -67,342,242.23 23,093,133.77
II. Significant investment and financing activities
un-related to income and expense of cash:
Debts transferring to assets - -
Convertible bonds due within 1 year - -
Fixed assets financed by leasing - -
III. Net change of cash and cash equivalent:
Period-end balance of cash and cash equivalent 382,271,002.22 241,218,144.34
Less: year-begin balance of cash and cash equivalent 356,362,100.63 429,507,715.29
Net increase amount of cash and cash equivalent 25,908,901.59 -188,289,570.95(2) Constitution of cash and cash equivalent
Unit: RMB
Items 2010-6-30 2009-12-31
I. Cash 382,271,002.22 356,362,100.63
Including: inventory cash 280,686.83 438,380.21
Bank deposit which can be used for payment at any time 381,495,811.39 355,352,771.06
Other currency capital which can be used for payment at any
time 494,504.00 570,949.36
II. Period-end balance of cash and cash equivalent 382,271,002.22 356,362,100.63
（VI）Related party and related transaction
1. Parent company of the Company
Share holding proportion of any shareholder of the Company didn't reach 50%, and couldn't
form a holding relationship of the Company through any methods. The Company has no parent
company.
2. Subsidiaries of the Company
Detail of subsidiaries sees in Note (IV).
3. Joint venture of the Company
Details of joint ventures of the Company see in Note (V).
4. Other related parties of the Company
Other related parties name Relationship between the Company Organization code
SHENZHEN GUANGJU INVESTMENT CO., LTD (Guangju
Holding for short)
Shareholders have major influence on
the Company
192170273
HONGKONGNAMHOI(INTERNATIONAL)LTD
Shareholders have major influence on
the Company
Inapplicable
BNPPP/PANDAINVESTMENTCOMPANYLIMITED
Shareholders have major influence on
the Company
Inapplicable
STATE GRID SHENZHEN ENERGY DEVELOPMENT (GROUP)
CO., LTD. (State Grid for short)
Shareholders have major influence on
the Company
71529249X
Energy Group
Shareholders have major influence on
the Company
192241158
Dongguan Weimei Pottery Industrial Park Co., Ltd. (Weimei Pottery
for short)
Minority shareholders of the
subsidiaries
72919361X
Shenzhen Mawan Power Co., Ltd.(Mawan Power for short) Subsidiaries of Energy Group 618816706Yueliang Bay Fuel Company Subsidiaries of Energy Group 618849428
Guangzhong Investment Company
Minority shareholders of the
subsidiaries
733096986
Xinzhong Group
Minority shareholders of the
subsidiaries
733112675
Directors of the Company and other senior executives Key management staff Inapplicable
5. Merger and related transaction of parent company
Merger
(1) Related transaction of commodities purchase, labor service received/provided
Unit: RMB
Jan.-June 2010 Jan.-June 2009
Proportion in
amount of
similar
transaction (%)
Proportion in
amount of
similar
transaction (%)
Related
parties
Transaction
type
Transaction
content
Price setting principal
and strategy procedures
Amount
Amount Proportion in
amount of
similar
transaction (%)
Amount
Amount Proportion in
amount of
similar
transaction (%)
Mawan
Power
Company
Labor
service
received
Usage fee
of oil
pipeline
Reference to the market
price or based on the
price from executives
department
231,126.66 100% 622,991.01 100%
Yueliang
Bay
Fuel
Comp
any
Labor
service
received
Usage fee
of pier
Reference to the market
price or based on the
price from executives
department
876,663.67 100% 5,621,570.49 100%
(2)Offering capital of related parties
Unit: RMB
Related parties
Amount of
offering
Commencement
date
Maturity Date
Balance at 30 June
2010
Note
Borrowing
Xinzhong Group 125,316,816.85 2008.11.19 2010.12.31 125,316,816.85
Xinzhong Group 23,750,000.00 2009.10.15 2010.12.31 23,750,000.00
Xinzhong Group 16,250,000.00 2009.03.27 2010.12.31 16,250,000.00
Xinzhong Group 14,335,291.80 2008.12.29 2010.12.31 14,335,291.80
Xinzhong Group 2,500,000.00 2009.03.27 2010.12.31 2,500,000.00
Loan
from debt
restructures
(3) Account receivable of related parties
Unit: RMB
Items Related parties 30 June 2010 31 December 2009Account payable Mawan Power Company - 49,172.39
Energy Group 1,175,284.32 1,176,443.10
Weimei Pottery Company - 200,000.00
Guangzhong Investment
Company
- 1,567,958.00
Other account payable
Xinzhong Group 209,214,951.59 204,351,945.66
Parent company
(1)Related transaction of commodities purchase, labor service received/provided
Unit: RMB
Amount accrued in this year Amount accrued in last year
Related parties
Transaction
type
Transaction
content Price setting
principal and strategy
procedures
Amount
Proportion in
amount of
similar
transaction
(%)
Amount
Proportion in
amount of
similar
transaction
(%)
Xiefu Fuel Supply
Company Purchase Fuel purchase
Reference to the
market price or based
on the price from
executives department 11,185,594.06 9.38% 182,525,782.11 98.65%
New Power
Company Purchase Fuel purchase
Reference to the
market price or based
on the price from
executives department 253,160,447.98 100% 97,900,072.64 100%
Xiefu Fuel Supply
Company
Labor service
received
Storage and
transportation fee
Reference to the
market price or based
on the price from
executives department 10,155,584.63 100% 4,743,228.43 100%
Mawan Power
Company
Labor service
received
Usage of oil
pipeline
Reference to the
market price or based
on the price from
executives department 231,126.66 100% 622,991.01 100%
Yueliang Bay
Fuel Company
Labor service
received Usage fee of pier
Reference to the
market price or based
on the price from
executives department 876,663.67 100% 5,621,570.49 100%
New Power
Company
Labor service
received
Usage fee of
Smoke& Gas
Reference to the
market price or based
on the price from
executives department 992,918.40 100% 35,740.80 100%
New Power
Company
Labor service
received
Labor service fee
of machinery
units’ entrusted
Reference to the
market price or based
on the price from
executives department 13,026,305.00 100% 14,021,067.50 100%
（1） Related entrusted
Unit: RMB
Name of
consigner
Name of
entrusted
Assets
entrusted
Amount
involved in
assets entrusted
Date of
beginning
Due date Entrusted
income
recognized basis of
entrusted income
influence to the
Company
New
Power
Company
The
Company
Power
generation unit
of 2#,10# and
Original value
559,769,925.61 2010.01.01 2010.06.30 13,026,305.00
Calculated based on
the RMB 0.025/kwh
of the generation 13,026,305.0011# volume
New
Power
Company
The
Company
Power
generation unit
of 2#,10# and
11#
Original value
559,769,925.61 2009.01.01 2009.06.30 14,021,067.50
Calculated based on
the RMB 0.025/kwh
of the generation
volume 14,021,067.50
(3) Related guarantee
Guarantee provided
Unit: RMB
Guarantee received Guarantee amount
Guarantee
beginning date
Guarantee due date
Impletion of
guarantee or not
Zhongshan Power Company 75,000,000.00 2010.03.26 2010.09.26 No
Zhongshan Power Company 50,000,000.00 2009.09.01 2011.09.01 No
Zhongshan Power Company 50,000,000.00 2010.04.01 2012.04.01 No
Weimei Power Company 40,000,000.00 2009.08.05 2010.08.05 No
Weimei Power Company 22,000,000.00 2009.09.09 2010.09.03 No
Weimei Power Company 22,000,000.00 2009.09.09 2010.09.06 No
Weimei Power Company 22,000,000.00 2009.09.09 2010.09.09 No
Weimei Power Company 40,000,000.00 2010.04.15 2011.02.03 No
Weimei Power Company 27,000,000.00 2010.04.20 2011.02.03 No
Weimei Power Company 40,000,000.00 2010.05.19 2011.02.03 No
Weimei Power Company 25,000,000.00 2010.06.04 2011.02.03 No
Weimei Power Company 22,000,000.00 2010.06.21 2011.02.03 No
Weimei Power Company 40,000,000.00 2010.06.24 2011.02.03 No
Weimei Power Company 60,000,000.00 2010.02.01 2012.02.01 No
Weimei Power Company 40,000,000.00 2010.04.01 2012.04.01 No
Weimei Power Company 80,000,000.00 2010.04.01 2011.04.01 No
Environment Company 46,000,000.00 2009.11.06 2017.11.06 No
Environment Company 10,000,000.00 2008.10.27 2013.10.27 No
Environment Company 10,000,000.00 2010.03.31 2011.03.31 No
(4) Lending money of related party
Unit: RMB
Related parties
Amount of
lending
money
Commencement
date
Maturity
Date
Balance at
period-end
Note
Borrowing
Engineering Company 60,000,000.00 2009.11.20 2010.11.17 60,000,000.00 Entrusted loan
Offering
Shenzhong 70,040,000.00 2010.03.31 2011.03.31 70,040,000.00 Roll-oversDevelopment
Company
Shenzhong
Development Company
48,750,000.00 2010.03.31 2011.03.31 48,750,000.00 Roll-overs
Shenzhong
Development Company
7,500,000.00 2010.03.31 2011.03.31 7,500,000.00 Roll-overs
Shenzhong
Development Company
375,950,450.55 2010.03.31 2011.03.31 375,950,450.55 Roll-overs
Shenzhong
Development Company
43,005,307.50 2010.03.31 2011.03.31 43,005,307.50 Roll-overs
Shenzhong
Development Company
46,280,000.00 2010.01.01 2010.12.31 46,280,000.00 Roll-overs
Shenzhong
Development Company
4,875,000.00 2009.08.29 2010.03.31 4,875,000.00
Have been received in
advance on Jan 6th of 2010
Weimei Power
Company
10,000,000.00 2008.10.28 2010.03.31 10,000,000.00
Have been received in
advance on Jan 7th of 2010
Weimei Power
Company
140,000,000.00 2010.01.28 2010.07.27 140,000,000.00
Entrusted loan, and has been
received 90 million yuan in
advance on Feb 5th of 2010.
Zhongshan Power
Company
28,000,000.00 2010.03.31 2011.03.31 28,000,000.00 Roll-overs
Zhongshan Power
Company
50,000,000.00 2010.03.31 2011.03.31 50,000,000.00 Roll-overs
Zhongshan Power
Company
40,437,227.87 2010.03.31 2011.03.31 40,437,227.87 Roll-overs
Zhongshan Power
Company
19,623,969.20 2010.03.31 2011.03.31 19,623,969.20 Roll-overs
Zhongshan Power
Company
100,000,000.00 2009.12.24 2010.12.23 100,000,000.00 Entrusted loan
Zhongshan Power
Company
180,000,000.00 2010.04.14 2011.04.13 180,000,000.00 Entrusted loan
Zhongshan Power
Company
50,000,000.00 2010.06.12 2011.06.12 50,000,000.00 Entrusted loan
(5) Payment for the use of state funds
Unit: RMB
Jan-June 2010 Jan-June 2009
Related parties
Transaction
type
Transaction
content
Price
setting
principal
Amount
Proportion in
amount of similar
transaction (%)
Amount
Proport
ion in
amount
of
similar
transact
ion (%)Engineering
company
for the use of
state funds
Interest
expenses
Note
1,127,495.00 4.18% 518,602.19 1.82%
Xiefu fuel
Supply Company
for the use of
state funds
Interest
income
Note
- 1,334,875.00 4.68%
Zhongshan
Power Company
for the use of
state funds
Interest
income
Note
8,197,913.80 30.38% 7,601,350.04 26.63%
Weimei Power
Company
for the use of
state funds
Interest
income
Note
1,859,237.50 6.89% 4,923,784.82 17.25%
Shenzhong
Development
Company
for the use of
state funds
Interest
income
Note
15,796,573.30 58.55% 14,160,374.23 49.62%
Note: payment for the use of state funds is calculated according to loan rate of current capital of peer banks.
(6) Account receivable of related parties
Unit: RMB
Items Related parties Amount at period-end Balance at year-begin
Other account receivable Xiefu fuel Supply Company 6,279,375.00 6,279,664.17
Zhongshan Power Company 178,629,723.58 169,415,458.71
Weimei Power Company 3,318,668.57 24,060,195.84
Environment Company -1,135,838.47 366,631.30
Shenzhong Development Company 677,004,186.72 666,085,773.42
Shennan Singapore Company 31,072.34 31,072.34
Dividend receivable New Power Company 597,875,904.41 597,875,904.41
Other current liabilities Zhongshan Power Company 330,000,000.00 100,000,000.00
Weimei Power Company 50,000,000.00 140,000,000.00
Interest payable Engineering Company - 1,723,625.23
Accounts payable Xiefu fuel Supply Company 1,391,839.34 3,802,647.30
Mawan Power Company - 49,171.39
Yueliang Bay Fuel Company - -
Other accounts payable Xiefu fuel Supply Company 1,018,453.09 1,062,898.35
New Power Company 308,381,404.30 334,269,727.50
Engineering Company -9,721.66 124,000.00
Syndisome Company 1,813,776.55 1,822,054.03
Energy Group 510,249.91 511,408.69(VII) Commitment
1. Capitalization commitment
Unit: RMB
Item 2010-6-30 2009-12-31
Signed capital expenditure commitment
which was still not recognized in financial
statements
-
-
-Construction commitment of long-term
assets 43,394,740.10 46,710,139.28
-External investment commitment 95,571,428.00 36,370,000.00
Total 138,966,168.10 83,080,139.28
(2) Commitment on operating lease
Till the balance sheet day, the condition of irrevocable operating lease contract the Group externally signed
is as follow:
Unit: RMB
Item 2010-6-30 2009-12-31
Minimum lease payments of irrevocable
operating lease:
The first year after balance sheet day 6,412,091.00 9,741,270.00
The second year after balance sheet day 1,376,850.00 1,376,850.00
The third year after balance sheet day 1,376,850.00 1,376,850.00
Subsequent years 68,006,003.05 68,006,003.05
Total 77,171,794.05 80,500,973.05
(VIII) Subsequent events after balance sheet day
Item Contents
Influence amount on
financial condition
and operating result
Reason for
unexpected
influence
amount
Selling the holding shares of
Wanneng Tongling
Company
On Apr 21st of 2010, according to
Agreement of Entrust about
Property Transfers signed by
Board of Directors and Shenzhen
United Assets and Equity
Exchange Co., Ltd., the Company
entrusted it to transfer the holding
2.83% equity of Wanneng
Tongling. The transferring price
was 34.7782 million yuan. On May
12th of 2010, the list and transfer
make a deal, the dealing price was
Has no influence on
financial condition
and operating result
of the first half year
of 2010 but the
operating result of
2010 decreased
47,678 yuan.
Not
applicable34.7782 million yuan. The
Company received transferred
accounts 34.7782 million yuan on
Jul 5th of 2010.
(IX). Note to main items of parent company’s financial statements
1. Accounts receivable
(1) Accounts receivable classifying according to the category:
Unit: RMB
2010-6-30 2009-12-31
Book balance
Provision for bad
debts Book balance
Provision for bad
debts
Category Amount
Proportion
(%) Amount
Proportion
(%) Amount
Proportion
(%) Amount
Proportion
(%)
Account with significant
single amount 120,104,608.82 99.72% - - 86,128,794.42 99.69% - -
Account with significant
single amount but with
higher risk after merger
according to credit risk
trait 0.00% - - - - - -
Other un-significant
account 333,230.50 0.28% - - 266,650.50 0.31% - -
Total 120,437,839.32 99.72% - - 86,395,444.92 100.00% - -
(2) Accounts receivable classifying according to the account age:
Unit: RMB
2010-6-30 2009-12-31
Account
age
Amount
Proportion
(%)
Provision
for bad
debts
Book value Amount
Proportion
(%)
Provision
for bad
debts
Book value
Within
1 year
120,437,839.32 100% - 120,437,839.32 86,395,444.92 100% - 86,395,444.92
1-2years
- - - - - - - -2-3years
- - - - - - - -
Above
3 years
- - - - - - - -
Total 120,437,839.32 100% - 120,437,839.32 86,395,444.92 100% - 86,395,444.92
（3）Balance of account receivables excludes the debts of the shareholders who hold over 5% (including 5%)
of voting share of our company in this reporting period.
（4）Particulars about top 5 units owing accounts receivable
Unit: RMB
Units
Relationship
with the
Company
Amount Age limit
Total
proportion in
accounts
receivable(%)
Guangdong Power Grid
Corporation Shenzhen Power
Supply Bureau
Non-related
clients
120,104,608.82
Within 1
year
99.72%
Shenzhen Nanshan meat
processing Factory
Non-related
clients
218,156.50
Within 1
year
0.18%
Shenzhen Nan Rong New Hotel
Co., Ltd.
Non-related
clients
30,212.00
Within 1
year
0.03%
Shenzhen University
Non-related
clients
23,695.00
Within 1
year
0.02%
Shenzhen Hengfeng Seaview
International Hotel Co., Ltd.
Non-related
clients
17,360.00
Within 1
year
0.01%
Total 120,394,032.32 99.96%
2. Other accounts receivable
(1) Other accounts receivable classifying according to the category:
Unit: RMB
2010-6-30 2009-12-31
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Amount
Proportion
(%) Amount
Proportion
(%) Amount
Proportion
(%) Amount
Proportion
(%)
Account with significant
single amount
888,900,375.38 99.40% 22,677,404.46 94.17% 890,601,905.59 99.40% 22,677,404.46 94.17%
Account with significant
single amount but with
higher risk after merger
according to credit risk trait
645,804.46 0.07% 645,804.46 2.68% 645,804.46 0.07% 645,804.46 2.68%
Other un-significant
account
4,700,082.48 0.53% 759,148.63 3.15% 4,700,082.48 0.52% 759,148.63 3.15%
Total 894,246,262.32 100.00% 24,082,357.55 100.00% 895,947,792.53 100.00% 24,082,357.55 100.00%Other accounts receivable classifying according to the account age:
Unit: RMB
2010-6-30 2009-12-31
Account age
Amount Proportion (%)
Provision for
bad debts
Book value Amount
Proportion
(%)
Provision for
bad debts
Book value
Within 1
year
286,085,963.39 31.99% - 286,085,963.39 287,787,493.60 32.12% - 287,787,493.60
1-2years 107,930,246.12 12.07% - 107,930,246.12 107,930,246.12 12.05% - 107,930,246.12
2-3years 474,823,145.73 53.10% 759,148.63 474,063,997.10 474,823,145.73 53.00% 759,148.63 474,063,997.10
Above 3
years
25,406,907.08 2.84% 23,323,208.92 2,083,698.16 25,406,907.08 2.84% 23,323,208.92 2,083,698.16
Total 894,246,262.32 100.00% 24,082,357.55 870,163,904.77 895,947,792.53 100.00% 24,082,357.55 871,865,434.98
(2) Accruing provision for bad debts of other accounts receivable with significant single amount in
period-end or un-significant but with single valuation:
Unit: RMB
Other accounts
receivable
Book balance
Amount of accruing
provision for bad debts
Accruing
proportion
Reason
Kangtai Huiyang County
Industrial Corporation
14,311,626.70 14,311,626.70 100.00%
Can not recover
overdue
Nanshan Investment
Company
5,895,738.00 5,895,738.00 100.00%
Can not recover
overdue
Disbursement of
personal income tax
payments
2,470,039.76 2,470,039.76 100.00%
Can not recover
overdue
Other 871,568,857.86 1,404,953.09 0.16%
Total 894,246,262.32 24,082,357.55 2.69%
Other account receivable with significant single amount but with higher risk after merger according to credit
risk trait
Unit: RMB
2010-6-30 2009-6-30
Book balance Book balance
Account age
Amount
Proportion
(%)
Provision for
bad debts Amount
Proportion
(%)
Provision for
bad debts
Above 3 years 645,804.46 0.07% 645,804.46 645,804.46 0.07% 645,804.46
Total 645,804.46 0.07% 645,804.46 645,804.46 0.07% 645,804.46
(3) Balance of other account receivables excludes the debts of the shareholders who hold over 5%
(including 5%) of voting share of our company in this reporting period.(4) Particulars about top 5 units owing other accounts receivable
Unit: RMB
Units
Relationship with
the Company
Amount Age limit
Total proportion in
accounts receivable
(%)
Shenzhong
Development
Company
Subsidiary of the
Company
677,004,186.72 1-3 years 75.71%
Zhongshan Power
Company
Subsidiary of the
Company
178,629,723.58 Within 1 year 19.98%
Weimei Power
Company
Subsidiary of the
Company
3,318,668.57 Within 1 year 0.37%
Huiyang County
Kangtai Industrial
company
Project partners 14,311,626.70 Above 3 years 1.60%
Xiefu Oil Supply
Company
Subsidiary of the
Company
6,279,375.00 1-2 years 0.70%
Total 885,439,318.57 99.02%Equity
holding
proportion
in
invested
units
Accrued
provision
for
devaluation
of this year
Invested units
Calculation
method
Original
investment cost
Balance at
period-begin
Increase and
decrease
Balance
2010-6-30 (%)
Voting
right
proportion
in
invested
units (%)
Reason
for
difference
between
equity
holding
proportion
and
voting
right
proportion
Provision for
devaluation
Cash
dividend
of this
year
Xiefu Oil
Supply
Company
Cost
method 26,650,000.00 26,650,000.00 - 26,650,000.00 50.00 50.00 - - - -
New
Electricity
Company
Cost
method 71,270,000.00 71,270,000.00 - 71,270,000.00 75.00 75.00 - - - -
Zhongshan
Electricity
Power
Company
Cost
method 218,240,000.00 218,240,000.00 - 218,240,000.00 55.00 55.00 - - - -
Engineering
Company
Cost
method 6,000,000.00 6,000,000.00 - 6,000,000.00 60.00 60.00 - - - -
Weimei
Electricity
Company
Cost
method 115,319,049.76 115,319,049.76 - 115,319,049.76 40.00 40.00 - - - -
Shennan
Singapore
Company
Cost
method 6,703,800.00 6,703,800.00 - 6,703,800.00 100.00 100.00 - - - -
Environment
Company
Cost
method 46,340,000.00 46,340,000.00 - 46,340,000.00 70.00 70.00 - - - -
Shenzhong
Development
Company
Cost
method - - - - 75.00 75.00 - - - -
Shenzhong
Property
Cost
method - - - - 75.00 75.00 - - - -Company
Wanneng
Tongling
Company
Cost
method 54,095,400.00 54,095,400.00 - 54,095,400.00 2.83 2.83 - 19,317,300.00
Energy
Environmental
Corporation
Cost
method 41,790,000.00 41,790,000.00 - 41,790,000.00 10.00 10.00 - - - -
Jiangxi
Xinchang
Company
Equity
method 196,285,715.00 186,186,050.41 -9,089,031.28 177,097,019.13 30.00 30.00 - - - -
Jiangxi
Nuclear
Power
Company
Cost
method 37,315,000.00 37,315,000.00 37,315,000.00 5.00 5.00 -
Total 782,693,964.76 772,594,300.17 28,225,968.72 800,820,268.89 19,317,300.004. Operating income and operating cost
(1) Operating income
Unit: RMB
Items Jan-Jun of 2010 Jan-Jun of 2009
Main business income 144,086,307.60 160,770,114.99
Other business income 22,968,737.21 14,615,512.84
Operating cost 294,907,340.61 191,470,461.98
（2）Main business (Sub-industry)
Unit: RMB
Jan-Jun of 2010 Jan-Jun of 2009
Industry
Operating
income
Operating cost Operating income Operating cost
Energy Industry 144,086,307.60 294,259,059.56 160,770,114.99 191,236,223.48
(3) Main business (Sub-products) Unit: RMB
Jan-Jun of 2010 Jan-Jun of 2009
Industry
Operating
income
Operating cost Operating income Operating cost
Electricity sales 143,161,046.58 292,167,488.02 159,505,646.16 190,948,554.96
Heat sales 925,261.02 2,091,571.54 1,264,468.83 287,668.52
Total 144,086,307.60 294,259,059.56 160,770,114.99 191,236,223.48
(4) Main business (Sub-region)
Unit: RMB
Jan-Jun of 2010 Jan-Jun of 2009
Region Operating income Operating cost Operating income Operating cost
Domestic 144,086,307.60 294,259,059.56 160,770,114.99 191,236,223.48
5. Investment income
(1) Particulars about investment income
Unit: RMB
Items Jan-Jun of 2010 Jan-Jun of 2009
Long-term equity investment income calculated
by cost method
- -
Long-term equity investment income calculated
by equity method
-32,231,888.28 -
Total -32,231,888.28 -
(2) Long-term equity investment income calculated by equity method
Unit: RMB
Invested units Jan-Jun of 2010 Jan-Jun of 2009 Reason for increase and decrease ofthis year compared to last year
Jiangxi Xinchang Company
-32,231,888.28 -
The company was in construction
period at the same time of last year
6. Supplementary information of cash flow sheet
Unit: RMB
Supplementary information Jan-Jun of 2010 Jan-Jun of 2009
1. Net profit transferred to cash flow of
operating activities:
Net profit -187,645,763.64 -5,288,690.33
Add: provision for assets devaluation - -
Fixed assets depreciation 22,539,592.88 19,506,594.28
Intangible assets amortization 431,697.75 1,066,821.60
Long-term accounts prepaid amortization 56,600.46 56,600.46
Loss of disposal of fixed assets, intangible assets
and other long-term assets
- -
Scrap loss of fixed assets - -
Financial expense (income) 43,805,893.79 13,855,694.33
Investment loss (income) 32,231,888.28 -
Decrease of deferred income taxes assets
(Increase)
- -
Decrease of inventory (Increase) 13,263,352.52 6,980,439.16
Decrease of operating accounts
receivable(Increase)
-121,558,372.43 -127,689,984.50
Increase of operating accounts payable
(Decrease)
-900,656.41 -117,760,492.57
Other - -
Net amount of cash flow arising from operating
activities
-197,775,766.80 -209,273,017.57
2．Significant investment and financing
activities unrelated to cash income and
expense:
Debts transferred to assets - -
Convertible Bonds due within 1 year - -
Fixed assets financed by leasing - -
3．Net changes in cash and cash equivalents:
Period-end balance of cash and cash equivalents 156,028,645.45 18,129,372.96
Less: period-begin balance of cash and cash
equivalent
35,564,935.05 29,272,846.21
Amount of increase of cash and cash equivalent 120,463,710.40 -11,143,473.25
(X) Supplementary information
1. Particulars about current non-recurring gains and lossUnit: RMB
Item Jan-Jun of 2010 Jan-Jun of 2010
Loss and gains of disposal of non-current assets -1,840.00 101,748.60
Government subsidies included in current gains and
loss (excluding those closely in accordance with
corporation business and enjoyed according to
fixed amount under national united standard) - 1,000,000.00
Gains and loss from debts restructure - -
Impairment reversal of accounts receivable with
single devaluation test - -
Other operating income and expense excluding the
above 250,055.79 90,151.83
Influence amount of income taxes - -21,203.92
Influence amounts of minority shareholders (after
tax) -59,553.95 -65,599.72
Total 188,661.84 1,105,096.79
2. Return on equity and earnings per share
Unit: RMB
Earnings per share
Profit in reporting period
Weighted average return on
equity (%)
Basic earning s
per share
Diluted earnings
per share
Net profit attributable to ordinary
shareholders of the Company
-14.83% -0.42 Not applicable
Net profit attributable to ordinary
shareholders of the Company deducting
non-recurring gains and loss
-14.84% -0.42 Not applicable
