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深南电B:2023年年度报告(英文版)2024-04-12  

                                                                                      Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


Ticker: 000037, 200037 Stock name: Shenzhen Nanshan Power A, Shenzhen Nanshan Power B Announcement No.: 2024-019




                               Shenzhen Nanshan Power Co., Ltd.

                                           2023 Annual Report




                                                  April 2024




                                                          1
                                                            Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                        2023 Annual Report

                       Section I Important, contents and definitions

The Board of Directors, the Board of Supervisors, directors, supervisors and senior officers guarantee
that the contents of the annual report are true, accurate and complete, without any false records,
misleading statements or major omissions, and shall bear individual and joint legal liability.

Kong Guoliang, the Principal, Chen Yuhui, the Chief Accountant, Zhang Xiaoyin, the Chief Financial
Officer, and Lin Xiaojia, Head of the Finance Department (Finance Head), guarantee that the financial
reports in the annual report are true, accurate and complete.

Except for the following directors, all other directors attended in person the meeting of the Board of
Directors to review this annual report

  Name of director who                                          Reasons for not
                             Position of director who                                    Name of the person
   was not present in                                       attending the meeting in
                               was not present in                                           entrusted
        person                                                      person
                                      person

 Sun Huirong                 Director                       Work related reasons       Huang Qing

 Huang Xiqin                 Independent director           Work related reasons       Du Wei

 Chen Zetong                 Independent director           Work related reasons       Du Wei

The Company plans not to distribute cash dividends, give away bonus shares, or increase share capital by
capital reserves.

If there are forward-looking statements in the annual report involving the company's future development
strategy, business plans, etc., they do not constitute the Company's substantive commitment to investors.
Investors are advised to maintain adequate risk awareness and understand the differences between plans,
forecasts and commitments, and pay attention to investment risks.

The annual report is prepared in Chinese and English respectively. If there is any ambiguity in the
understanding of the two texts, the Chinese text shall prevail. Investors are requested to read the full text
of the annual report carefully.




                                                        2
                                                                                      Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                                                    Table of contents

Section I Important, contents and definitions ...................................................................................................... 2

Section II Company profile and key financial indicators .................................................................................... 6

Section III Management discussion and analysis................................................................................................. 12

Section IV Corporate governance ......................................................................................................................... 48

Section V Environmental and social responsibilities ........................................................................................... 78

Section VI Important matters................................................................................................................................ 82

Section VII Changes in shares and shareholders ................................................................................................. 89

Section VIII Preferred shares ................................................................................................................................ 98

Section IX Bonds..................................................................................................................................................... 99

Section X Financial report ..................................................................................................................................... 100




                                                                                  3
                                                            Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                      List of documents for inspection

I. The original 2023 annual report signed by the Company's legal representatives.

II. Financial statements signed and stamped by the Company's Principal, Chief Accountant, Chief Financial
Officer and Head of the Finance Department (Finance Head).

III. The original audit report stamped by the accounting firm and signed and stamped by the certified public
accountant.

IV. All the Company's original documents and announcements publicly disclosed in designated media during
the reporting period.

V. Location for inspection: the office of Board of Directors of the Company.




                                                        4
                                                Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                 Interpretation

                 Item            Refer to                                Content
Company, the Company, Shenzhen
Nanshan Power and listed         Refer to           Shenzhen Nanshan Power Co., Ltd.
company
CSRC                             Refer to           China Securities Regulatory Commission
Shenzhen State-owned Assets                         State-owned Assets Supervision and
Supervision and Administration   Refer to           Administration Commission of Shenzhen
Commission                                          People's Government
Shenzhen Nanshan Power                              Shenzhen Nanshan Power (Zhongshan) Power
                                 Refer to
Zhongshan Company                                   Co., Ltd.
Shenzhen Nanshan Power                              Shenzhen Nanshan Power Gas Turbine
                                 Refer to
Engineering Company                                 Engineering Technology (Shenzhen) Co., Ltd.
Shenzhen Nanshan Power
                                                    Shenzhen Nanshan Power Environmental
Environmental Protection         Refer to
                                                    Protection (Shenzhen) Co., Ltd.
Company
Xiefu Company                    Refer to           Shenzhen Xiefu Energy Co., Ltd.
New Power Company                Refer to           Shenzhen New Power Industrial Co., Ltd.
                                                    Shenzhen Nanshan Power Co., Ltd. Nanshan
Nanshan Power Plant              Refer to
                                                    Power Plant
                                                    Shenzhen Nanshan Power (Zhongshan) Power
Zhongshan Nanlang Power Plant    Refer to
                                                    Co., Ltd. Zhongshan Nanlang Power Plant
Company Law                      Refer to           Company Law of the People's Republic of China
Securities Law                   Refer to           Securities Law of the People's Republic of China
                                                    Rules Governing the Listing of Stocks on
Stock Listing Rules              Refer to
                                                    Shenzhen Stock Exchange
                                                    Articles of Association of Shenzhen Nanshan
Articles of Association          Refer to
                                                    Power Co., Ltd.
                                                    Except for the specially described currency units,
RMB, RMB 10,000, RMB
                                 Refer to           the remaining currency units are RMB, RMB
100,000,000
                                                    10,000, and RMB 100,000,000
Reporting period                 Refer to           January 1, 2023 to December 31, 2023




                                            5
                                                              Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                  Section II Company profile and key financial indicators

I. Company information

                                                                                        Shenzhen Nanshan Power
 Stock name                   000037、200037                  Ticker                    A, Shenzhen Nanshan
                                                                                        Power B
 Stock exchange               Shenzhen Stock Exchange
 Name in Chinese              深圳南山热电股份有限公司
 Abbreviation in Chinese      深南电
 Name in English (if any)     Shenzhen Nanshan Power Co., Ltd.
 Registered address           No. 2097, Yueliangwan Avenue, Nanshan District, Shenzhen, Guangdong Province
 Postal code of registered
                              518054
 address
 Historical changes of
                              None
 registered address
                              16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, Guangdong
 Office address
                              Province
 Postal code of office
                              518053
 address
 Website                      http://www.nsrd.com.cn
 E-mail                       public@nspower.com.cn; investor@nspower.com.cn

II. Contact person and contact details

                                         Secretary of the Board of Directors        Securities representative
 Name                                    Zou Yi
                                         16/F-17/F, Hantang Building, OCT,
 Contact address                         Nanshan District, Shenzhen,
                                         Guangdong Province
 Tel.                                    0755-26003611
 Fax                                     0755-26003684
 E-mail                                  investor@nspower.com.cn

III. Information disclosure and preparation location

 The stock exchange website where the Company
                                                          Shenzhen Stock Exchange: http://www.szse.cn/
 discloses its annual report
 Name and website of the media where the Company          Securities Times: http://www.stcn.com/, CNINFO:
 discloses its annual report                              http://www.cninfo.com.cn/
                                                          Office of the Board of Directors, 17/F, Hantang
 Preparation location of annual report                    Building, OCT, Nanshan District, Shenzhen,
                                                          Guangdong Province

IV. Changes in registration

 Unified social credit code                                   91440300618815121H
                                                          6
                                                              Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


 Changes in the Company's main business since its
                                                              None
 listing (if any)
 Previous changes in controlling shareholders (if any)        No controlling shareholder

V. Other relevant information

The accounting firm hired by the Company

 Name of the accounting firm                                  Lixinzhonglian CPAS (Special General Partnership)
                                                              1-1-2205-1, North District, Financial and Trade
 Office address                                               Center, No. 6865 Yazhou Road, Tianjin Pilot Free
                                                              Trade Zone (Dongjiang Bonded Port Zone)
 Name of signatory accountant                                 Cao Wei and Zou Yang

The sponsor institution hired by the Company to perform continuous supervision responsibilities during the
reporting period

□Applicable  Not applicable

Financial consultant hired by the Company to perform continuous supervision duties during the reporting period

□Applicable  Not applicable

VI. Key accounting data and financial indicators

Whether the Company need to retroactively adjust or restate the previous accounting data

□Yes  No

                                                                          Change compared
                                2023                     2022             with the previous          2021
                                                                                 year
 Operating revenue
                            589,780,190.71         694,227,657.28                   -15.05%       757,175,743.41
 (RMB)
 Net profit
 attributable to
 shareholders of                4,158,797.10      -160,163,240.67                   102.60%       -439,448,712.13
 listed companies
 (RMB)
 Net profit
 attributable to
 shareholders of
 listed companies            -70,789,007.91       -225,967,573.71                    68.67%       -514,142,213.75
 after deducting non-
 recurring gains and
 losses (RMB)
 Net cash flows
 generated from            -100,371,976.92         207,168,402.26                  -148.45%        -39,258,302.07
 operating activities

                                                          7
                                                               Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


 (RMB)
 Basic earnings per
                                      0.0069                    -0.2657              102.60%                 -0.7291
 share (RMB/share)
 Diluted earnings
 per share                            0.0069                    -0.2657              102.60%                 -0.7291
 (RMB/share)
 Weighted average
                                                                            +10.72 percentage
 rate of return on net                 0.29%                   -10.43%                                       -23.95%
                                                                                       points
 assets
                                                                           Change compared
                            End of 2023             End of 2022            with the end of the      End of 2021
                                                                             previous year
 Total assets (RMB)        2,049,365,388.69        2,606,216,345.99                   -21.37%      2,790,002,824.41
 Net assets
 attributable to
 shareholders of           1,459,288,691.94        1,455,129,894.84                    0.29%       1,615,293,135.51
 listed companies
 (RMB)

The Company's net profit before and after deducting non-recurring gains and losses in the past three fiscal years,
whichever is lower, is negative; meanwhile, the audit report for the most recent year shows that there is
uncertainty in the Company's going-concern ability

□Yes     No

The lower of net profit before and after deducting non-recurring profit or loss is negative

Yes      □ No

            Item                         2023                             2022                      Remark
                                                                                           Mainly received from
 Operating revenue                                                                         power production and
                                         589,780,190.71                   694,227,657.28
 (RMB)                                                                                     sale and revenue from
                                                                                           integrated energy services
 Amount after deduction
                                                                                           Mainly received from
 of operating revenue                       1,409,620.51                    1,611,967.02
                                                                                           house lease revenue
 (RMB)
 Amount after deduction
                                                                                           Operating revenue after
 of operating revenue                    588,370,570.20                   692,615,690.26
                                                                                           deduction of house rent
 (RMB)

VII. Differences in accounting data under domestic and foreign accounting standards

1. Differences in net profit and net assets in financial reports disclosed in accordance with both
international and Chinese accounting standards

□Applicable  Not applicable

There was no difference between net profit and net assets in the financial reports disclosed in accordance with
                                                           8
                                                             Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

both international and Chinese accounting standards during the reporting period of the Company.

2. Differences in net profit and net assets in financial reports disclosed in accordance with both
international and Chinese accounting standards

□Applicable  Not applicable

There was no difference between net profit and net assets in the financial reports disclosed in accordance with
both international and Chinese accounting standards during the reporting period of the Company.

VIII. Key financial indicators by quarter

                                                                                                     Unit: RMB

                                Q1                     Q2                      Q3                    Q4
 Operating revenue           111,067,616.64         160,200,568.41          182,838,205.80        135,673,799.86
 Net profit
 attributable to
                             -31,147,959.30          -6,092,780.26            8,482,149.79         32,917,386.87
 shareholders of
 listed companies
 Net profit
 attributable to
 shareholders of
 listed companies            -41,178,992.24         -13,698,338.39            2,109,131.54        -18,020,808.82
 after deducting non-
 recurring gains and
 losses
 Net cash flows from
                             -36,865,225.55         -20,151,263.99          -62,363,198.51         19,007,711.13
 operating activities

Whether there are significant differences between the above financial indicators or their totals and the relevant
financial indicators disclosed by the Company in quarterly reports and semi-annual reports or not

□Yes  No

IX. Non-recurring profit or loss and amounts

Applicable       □ Not applicable

                                                                                                     Unit: RMB

         Item             Amount in 2023         Amount in 2022          Amount in 2021            Remark
 Profit or loss on
 disposal of non-                                                                            Mainly due to the
 current assets                                                                              impact of profit or
 (including the                1,878,391.11          -1,171,953.71             974,699.74    loss on the disposal
 write-off of                                                                                of various non-
 provision for asset                                                                         current assets
 impairment)
 Government                   44,431,212.00           9,333,093.72           23,396,336.60   Mainly government
                                                         9
                                             Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


subsidies included                                                           subsidies related to
in current profit or                                                         income and
loss (except those                                                           apportionment of
that are closely                                                             government
related to the                                                               subsidies related to
Company's normal                                                             assets, etc.
business, in line
with national policy
regulations and in
accordance with
defined criteria, and
have a lasting
impact on the
Company's profit or
loss)
Profit or loss from
changes in fair
value of financial
assets and liabilities
held by non-
                                                                             Mainly investment
financial enterprises
                                                                             income received
and profit or loss
                                                                             from financial
from the disposal of     18,538,064.54   58,227,971.21       47,887,839.11
                                                                             assets held for
financial assets and
                                                                             trading
liabilities, except
for effective
hedging operations
related to the
Company's normal
business operations
Profit or loss arising
from contingencies
unrelated to the                  0.00            0.00        5,000,000.00
Company's normal
business operations
                                                                             Mainly due to the
                                                                             reversal of the
Reversal of
                                                                             provision for bad
provision for
                                                                             debts made was that
impairment of
                          1,235,154.68            0.00                0.00   the lease deposits
receivables
                                                                             were expected to be
individually tested
                                                                             recovered upon
for impairment
                                                                             surrender of the
                                                                             leases.

                                           10
                                                            Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                                                                                Mainly due to the
                                                                                                receipt of the
 Other non-operating                                                                            compensation for
 revenue and                                                                                    power outage by
 expenses other than           11,628,630.83             -635,065.42               13,652.99    Shenzhen Nanshan
 those mentioned                                                                                Power Zhongshan
 above                                                                                          Company and
                                                                                                Nanshan Power
                                                                                                Plant this year.
 Less: income tax
                                         0.00                    0.00                    0.00
 impact
 Changes in the
 amount of minority             2,763,648.15               -50,287.24           2,579,026.82
 interests (after tax)
 Total                         74,947,805.01           65,804,333.04           74,693,501.62

Details of other profit or loss that meet the definition of non-recurring gains and losses:

Applicable  Not applicable

The Company has no other specific circumstances of profit or loss that meet the definition of non-recurring
gains and losses.

Explanation on defining non-recurring profit or loss listed in the Explanatory Announcement No. 1 on
Information Disclosure of Companies that Offer Securities to the Public - Non-recurring Gains and Losses as
recurring profit or loss.

□Applicable  Not applicable

The company does not define non-recurring profit or loss listed in the Explanation on defining non-recurring
profit or loss listed in the Explanatory Announcement No. 1 on Information Disclosure of Companies that Offer
Securities to the Public - Non-recurring Gains and Losses as recurring profit or loss.




                                                          11
                                                           Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                      Section III Management discussion and analysis

I. Industry status of the Company during the reporting period

The Company shall comply with the disclosure requirements for power supply industry in the Shenzhen Stock
Exchange Listed Company Self-Regulatory Guidelines No. 3 - Industry Information Disclosure

According to the 2023-2024 Analysis and Forecast Report of National Power Supply and Demand released by
the China Electricity Council, in 2023, the nation's total social electricity consumption was 9.22 trillion KWH,
with per capita electricity consumption of 6,539 KWH; the electricity consumption of the whole society
increased by 6.7% YoY, with a growth rate of 3.1 percentage points higher than 2022. The rebound of the
national economy has driven the growth rate of electricity consumption to increase YoY. In each quarter, the
electricity consumption of the whole society increased by 3.6%, 6.4%, 6.6% and 10.0% YoY respectively, with
the YoY growth rate increasing quarter by quarter; affected by factors such as the low base in the same period
of 2022 and economic recovery, the YoY growth rate of electricity consumption in the entire society increased
significantly in the fourth quarter. The two-year average growth rate in the fourth quarter was 6.8%, which was
close to the two-year average growth rate in the third quarter. In terms of industries, first, the electricity
consumption of the primary industry continued to grow rapidly. In 2023, the electricity consumption of the
primary sector was 127.8 billion KWH, a year-on-year increase of 11.5%; second, the growth rate of electricity
consumption in the secondary sector increased quarter by quarter. In 2023, the secondary sector consumed 6.07
trillion KWH of electricity, a year-on-year increase of 6.5%; third, electricity consumption in the tertiary sector
resumed rapid growth. In 2023, the electricity consumption of the tertiary sector was 1.67 trillion KWH, a year-
on-year increase of 12.2%. Fourth, the electricity consumption of urban and rural residents increased at a slow
rate. In 2023, urban and rural residents' domestic electricity consumption was 1.35 trillion KWH, a year-on-year
increase of 0.9%. The high base of the previous year is an important reason for the low growth of residents'
domestic electricity consumption in 2023. Electricity consumption in 31 provinces across the country all
showed positive growth, with the western region leading the way.

As of the end of 2023, the installed capacity of power generation in China was 2.92 billion KW, a year-on-year
increase of 13.9%; Since the per capita installed capacity of power generation historically exceeded 1 kW at the
end of 2014, it historically exceeded 2 kW for the first time in 2023, reaching 2.1 kW. The installed capacity of
non-fossil energy power generation exceeded thermal power for the first time in 2023, accounting for more than
50% of total installed capacity for the first time in 2023, while the installed capacity of coal power dropped
below 40% for the first time. Judging from investment by type, growth rate of power generation capacity and
structural changes, the trend of green and low-carbon transformation in power industry continued to advance. In
2023, the power system operated safely and stably, with the overall balance of power supply and demand in
China and good results in ensuring power supply.

According to the Southern (Starting from Guangdong) Spot Power Market 2024 Annual Report, the maximum
regulated load in Guangdong Province in 2023 was 145 million KW (July 27), a year-on-year increase of 2.1%;
the regulated power generation and reception was 820.8 billion KWH, a year-on-year increase of 7.8%. The
maximum west-to-east power transmission was 42,220,000 KW, an increase of approximately 1,990,000 KW
over the annual plan; the cumulative power received from west-to-east power transmission was 178.5 billion
KWH, a year-on-year decrease of 1.8%. There was no peak power rationing throughout the year. The province's
installed capacity under unified dispatching was 193 million KW, including 147 million KW from provincial
dispatching and 45,320,000 KW from municipal dispatching. The utilization hours of coal-fired unit under
                                                         12
                                                           Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

provincial dispatching were 4,926 hours, an increase of 206 hours year-on-year; 2,875 hours for gas-fired unit,
an increase of 288 hours year-on-year; 7,315 hours for nuclear power units, an increase of 198 hours year-on-
year; 2,734 hours for hydropower unit , an increase of 255 hours year-on-year; 923 hours for photovoltaic unit ,
a decrease of 202 hours year-on-year; 2,499 hours for wind unit, an increase of 151 hours year-on-year; 4,124
hours for biomass, an increase of 623 hours year-on-year. The cumulative on-grid energy of wind power,
photovoltaic, hydropower and biomass reached 90.09 billion KWH, a year-on-year increase of 11.9%; the
cumulative on-grid energy of nuclear was 99.87 billion KWH, a year-on-year increase of 3.9%. On December
29, 2023, the Guangdong Power Trading Center issued the Notice of the Guangdong Provincial Development
and Reform Commission and the National Energy Southern Regulatory Bureau on the Official Operation of the
Guangdong Spot Power Market, indicating that the spot power market in Guangdong officially started formal
operation from now on. Guangdong became the second province after Shanxi to officially operate spot power
market.

According to third-party data from the natural gas industry, China's natural gas production was 229.7 billion
cubic meters in 2023, a year-on-year increase of 5.8%; natural gas import volume was 177.556 billion cubic
meters, a year-on-year increase of 9.9%; natural gas export volume was 6.52 billion cubic meters, a year-on-
year increase of 10.1%; the apparent consumption of natural gas was 394.53 billion cubic meters, a year-on-
year increase of 7.6%. In terms of LNG supply and demand, China's apparent LNG consumption in 2023 was
35.2713 million tons, a year-on-year increase of 22.80%. Among them, domestic LNG supply was 23.2593
million tons, a year-on-year increase of 12.9%; imported LNG tanker supply was 12.012 million tons, a year-
on-year increase of 47.90%. In terms of LNG prices, the average ex-factory price of China's LNG in 2023 was
RMB 4,911/ton, a year-on-year decrease of 27.61%. Among them, the average ex-factory price of domestic
LNG was RMB 4,830/ton, a year-on-year decrease of 24.86%; the average ex-factory price of imported LNG
was RMB 5,126/ton, a year-on-year decrease of 28.73%; the average delivery price of LNG delivered to China
was RMB 5,164/ton, a year-on-year decrease of 26.62%. Generally speaking, against the background of the
gradual normalization of the Russia-Ukraine war and the slow recovery of the global economy, the overall
natural gas price declined in 2023. International natural gas spot prices fell significantly, with the average price
of the Asian spot natural gas index JKM in 2023 falling by 50% compared with 2022. The Company's fuel
procurement costs decreased slightly from 2022 due to lower international oil prices and natural gas spot gas
prices, as well as lower domestic pipeline gas prices compared to 2022.

II. Main business of the Company during the reporting period

The Company shall comply with the disclosure requirements for power supply industry in the Shenzhen Stock
Exchange Listed Company Self-Regulatory Guidelines No. 3 - Industry Information Disclosure

The Company's main business includes power and heat supply for production and operation, and technical
consulting and technical services related to power plants (stations). At the end of the reporting period, the
Company owned two gas turbine power plants. Among them, Nanshan Power Plant had three sets of 9E gas-
steam combined cycle generating units with total installed capacity of 540,000 kilowatts, located in the power
load center area of Qianhai Free Trade Zone, Shenzhen. They are main peak shaving power in the region, and
are currently in normal production and operation; Zhongshan Nanlang Power Plant received the Letter on
Matters Regarding the Units Shutdown of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. Nanlang
Power Plant from Energy Bureau of Guangdong Province on November 6, 2023 (YNDLH [2023] No. 672), in
which Energy Bureau of Guangdong Province agreed to shut down two 180MW gas-fired cogeneration units of
Zhongshan Nanlang Power Plant. At present, the two 9E gas-steam combined cycle power generating units

                                                         13
                                                         Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

owned by Zhongshan Nanlang Power Plant have been shut down and withdrawn from dispatching operation,
and the related assets of the power generating units have entered the public listing and transfer process.

During the reporting period, the Company's main power business faced challenges such as fierce competition in
the power market and sustained high fuel price. In order to reduce the negative impact of the external
environment on the Company's operating performance, the Company has implemented a series of business
layout and management changes with innovative thinking and perseverance. The Company clarified annual
business goals and policies, adopted targeted major measures, and continuously increased the efforts in
economic operation management on the basis of strict work safety management. The Company, in line with the
trend of accelerating the power market-oriented reform process in Guangdong Province, organized subordinate
power plants to actively participate in power market marketing and achieved good results, which made
contributions to the Company's turn from losses to profits.

During the reporting period, the Company paid close attention to the operational development and market
expansion of its existing business. Its subsidiary Shenzhen Nanshan Power Engineering Company continued to
develop technical consulting and technical services for domestic and foreign gas turbine power station
construction projects while seizing strategic opportunities for the development new energy industry. It focused
on exploring new energy business, tried to build a "construction, operation, management and maintenance"
platform for new energy. With its professional and refined technical capabilities, Shenzhen Nanshan Power
Engineering Company has signed multiple contracts to provide clients with professional technical services;
Shenzhen Nanshan Power Environmental Protection Company took integrated energy service as its
transformation and development direction, actively expanded comprehensive energy service projects such as
industrial and commercial energy storage, distributed photovoltaic, charging pile, striving to create a new
integrated energy service business model.

Main production and operation information

                  Item                        The reporting period                 Same period last year
 Total installed capacity (10,000
                                                                        54                                    90
 KW)
 Installed capacity of newly
                                                                         0                                     0
 commissioned unit (10,000 KW)
 Planned installed capacity of
                                                                         0                                     0
 approved projects (10,000 KW)
 Planned installed capacity of
 projects under construction (10,000                                     0                                     0
 KW)
 Power generation (100 million
                                                                      6.57                                  8.60
 KWH)
 On-grid energy or energy sold (100
                                                                      6.54                                  8.58
 million KWH)
 Average power consumption rate
                                                                     3.90%                                 3.50%
 of the power plant (%)
 Utilization hours of the power
                                                                       723                                   946
 plant (hours)

The Company's power sales
                                                       14
                                                          Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

Applicable       □ Not applicable

In 2023, the Company's two power plants completed a total of 654 million KWH of actual on-grid energy, with
medium- and long-term contracted power such as purchasing and market power amounting to 1.183 billion
KWH. The completion of power is as follows: Nanshan Power Plant completed 597 million KWH on-grid
energy, with medium- and long-term contracted power such as purchasing and market power amounting to 945
million KWH; Zhongshan Nanlang Power Plant completed 57 million KWH on-grid energy, with medium- and
long-term contracted power such as purchasing and market power amounting to 237 million KWH .

Reasons for significant changes in relevant data

Applicable       □ Not applicable

On February 21, 2022, Board of Directors reviewed and approved the Proposal on Initiating the Shutdown and
Retirement of Two Sets of 9E Gas-fired Unit of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. The
Company initiated the shutdown and retirement of two 9E gas-fired units of Shenzhen Nanshan Power
Zhongshan Company, and submitted an official shutdown and retirement application to Energy Bureau of
Guangdong Province on November 24, 2022. On November 6, 2023, Zhongshan Nanlang Power Plant received
the Letter on Matters Concerning the Shutdown of the Units of Shenzhen Nanshan Power (Zhongshan) Power
Co., Ltd. Nanlang Power Plant (YNDLH [2023] No. 672) from Energy Bureau of Guangdong Province.
According to the Letter, Energy Bureau of Guangdong Province agreed to shut down two 180 MW gas-fired
cogeneration units of Zhongshan Nanlang Power Plant. As of the end of 2023, the Company's total installed
capacity has dropped to 540,000 KW.

III. Core competitiveness analysis

In recent years, affected by the macroeconomic situation and common problems in the gas turbine power
generation industry, the Company's main business is facing increasing difficulties and challenges. However, the
basic core competitiveness formed by more than 30 years of operation and development and the strong support
of the Company's major shareholders, as well as the innovative management measures taken by the Board of
Directors and management team have laid the necessary foundation for the Company's continued operations and
pursuit of transformation and development. During the reporting period, the Company closely focused on the
core task of high-quality party building to lead high-quality development, anchored the two major goals of
operation and development, and adhered to the management principles of standardization, science, pragmatism,
efficiency, fairness and justice, and performed various tasks in a down-to-earth manner. These initiatives have
fully promoted the Company's overall development, further consolidating and enhancing the Company's core
competitiveness.

1. Management culture of hard work and innovation. The Company has a group of management personnel with
a sense of innovation and the spirit of hard work. By deepening human resource reform and building a
performance-oriented appraisal and incentive mechanism, the Company advocates and creates a management
culture of unity, hard work, innovation and progress. At the same time, the Company attaches great importance
to and vigorously promotes the construction of institutional system, management system and compliance
systems. It adheres to standardized management in a legal, scientific and rigorous, efficient and orderly manner.
Through refined and standardized management orientation, a good foundation has been laid for the Company to
deeply explore internal potential and actively seek external opportunities.



                                                        15
                                                          Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

2. Professional and enterprising technical talents. With more than 30 years of hard work and influence in the gas
turbine power generation industry, the Company has attracted and trained a group of technical experts and
professionals in the gas turbine industry, and has accumulated rich experience in the construction and
operational management of gas turbine power plants. In order to comply with the market trend of power market-
oriented reform in the Guangdong Province, the Company has established a professional power marketing team
to study power trading strategies, explore and build power marketing mathematical models. The accumulative
rich experience in power marketing has laid a solid foundation for the Company to participate in the
construction of new power market and integrate into the wave of power market reform. In addition, Shenzhen
Nanshan Power Engineering Company also provides professional services such as technical consultation,
commissioning, and operation guarantee for dozens of domestic and overseas gas turbine power stations; the
Company has successively undertaken technical personnel training services for dozens of power plants at home
and abroad, and has become a well-known professional talent training base in the domestic gas turbine industry,
establishing a good reputation and professional brand image in the peer group.

3. A level of expertise that is up to date. The Company has a number of independent utility model patents and
software copyrights, and jointly drafted and compiled 1 national standard. On December 23, 2021, it was
recognized by the Shenzhen Municipal Certification Management Agency as the second batch of high-tech
enterprise in 2021, representing that the company's scientific R&D and innovation work has been unanimously
affirmed by the society. During the reporting period, the Company applied for 7 utility model patents and 1
invention patent, with 6 utility model patents having been authorized. The Company's total number of
authorized patents has reached 44 (including 4 invention patents) and 8 software copyrights, which has greatly
enhanced the Company's brand image and industrial competitiveness.

4. Rich experience in industrial exploration. The Company gives full play to its own advantages to accumulate
experience in the construction and operation of new energy industries such as electrochemical energy storage,
photovoltaic, and charging pile, and actively develop comprehensive energy business. Through the preliminary
work of independent energy storage power stations and the construction and operation of photovoltaic projects,
the Company has accumulated certain experience in the preliminary preparation, construction, commissioning,
operation and maintenance of energy storage projects, and has trained a group of professionals. The rich talent
pool and technological advantages in the traditional power industry enable the Company to tap its potential and
have laid a solid technology and talents foundation for the Company to enter the new energy service field

5. Leading environmental protection level. The Company's power plants are all gas-fired generator units that
use natural gas as fuel. The CO2 emissions in flue gas are approximately 42% of those of coal-fired power
plants, providing strong support for the national "carbon peaking and carbon neutrality" construction. In
accordance with the requirements of the Shenzhen Municipal People's Government 2018 'Shenzhen Blue'
Sustainable Action Plan, the Company fully completed the "Shenzhen Blue" transformation of the #3, #10 and
#1 gas turbines of Nanshan Power Plant. After the transformation, the nitrogen oxide emissions of each unit
were reduced to less than 15mg/m3, reaching the world's most advanced level. Nanshan Power Plant was also
selected as the Top Plant Award by Power Magazine, the most authoritative magazine in the global power
industry founded in 1882.




                                                        16
                                                          Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


IV. Main business analysis

1. Overview

2023 is the first year to fully implement the spirit of the 20th National Congress of the Communist Party of
China. It is also a critical year for the Company to carry out the transformation strategy. The Company's
management leads all employees to face difficulties and work hard. Focusing on the core task of high-quality
party building to lead high-quality development, and anchoring the two major goals of operation and
development, we make every effort to ensure the safety and stability of power production, vigorously improve
the profitability of main business, and actively explore the development path of transformation and upgrade,
while also comprehensively carrying out the optimization, improvement and innovation of internal management
systems and mechanisms. All the initiatives have helped us to build a standardized and efficient institutional
system and a long-term mechanism for compliance operations. As a result, the clean and upright corporate
culture is reshaped, a vigorous atmosphere of entrepreneurship is created, achieving operating results that far
exceeded expectations, and turned losses into profits.

The main work carried out by the Company during the reporting period is as follows:

(1) Strengthening the foundation by paying close attention to safety and stability. In 2023, the Company firmly
established the concept of safe development, persisted in ensuring work safety, comprehensively consolidated
the mechanism of main body responsibility and the foundation of work safety. We have actively carried out
work safety supervision and management to ensure the safe and orderly operation of the Company's production
and operations. We also maintained a stable environment for work safety and kept good records of the "Five
Nos" safety goals. First, we have signed a safety responsibility list to improve target control measures. We
comprehensively implemented safety management responsibilities and the work safety responsibility system for
all employees, strictly and meticulously implement work safety measures, so as to build a solid work safety
bottom line, and ensure the Company's sustainable development. Second, we have carried out solid safety
hazard investigation to make every effort to resolve safety risks. We carried out in-depth "special action to
investigate and manage major safety hazards in the Company" to fully understand and dynamically grasp the
number of major work safety hazards; meanwhile, we promoted the implementation of the statutory duties of
company leaders and the work safety responsibility system, so as to promote the transformation of the work
safety management model to pre-emptive prevention. Third, we have strengthened technical supervision and
pay close attention to the source of safety. In response to equipment failures, we organized equipment
assessment work to comprehensively evaluate equipment status, grasp the technical status of production
equipment. Based on the assessment, we analyzed equipment health and reliability to carry out targeted
equipment rectification, so as to ensure equipment reliability, and improve the intrinsic safety of equipment.

(2) Make overall plans to improve performance by tapping potential and enhancing efficiency. In 2023, when
the external market environment was not improved significantly, the Company made overall planning and
coordination of internal resources to maximize the cost reduction and efficiency increase on the basis of fully
ensuring the safe and stable operation of power production, resulting in a year-on-year reduction in net profit
attributable to parent company by RMB 164.32 million. The first thing we have done is to optimize the gas and
electricity matching mechanism. The Company's headquarters fully coordinated the fuel procurement and
power marketing work of Nanshan Power Plant and Shenzhen Nanshan Power Zhongshan Company. By
strengthening the matching management of gas and power, we meticulously formulated and dynamically
adjusted the clearing strategy, striving for the decrease in natural gas price, and effectively avoiding unplanned
downtime penalties. Under the circumstances where the fuel price did not drop significantly, the Company's
                                                        17
                                                          Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

marginal contribution of main business turned losses into gains. Second, we strengthened budget control in an
all-round way. On the premise of ensuring work safety, we strictly controlled all kinds of non-essential and non-
urgent expenses, and at the same time, realized a significant year-on-year decline in period expenses by means
of intensive procurement and suppression of variable expenses; by strengthening communication with
government departments, we actively sorted out power generation-related subsidy policies, proactively explored
potential subsidy funds, and followed up on the entire process of subsidy application and issuance. Finally, we
successfully obtained government subsidies RMB 25.40 million. The third is to strengthen post-investment
management. The dividends received from the investment on Nanjing Sunpower, Liaoyuan Environmental
Protection and Yuanzhi Ruixin Asset were approximately RMB 10 million.

(3) Concentrating efforts to tackle difficulties and striving for development. At the beginning of 2023, the
Company clarified the strategic direction of transformation and development as focusing on new energy
industry and energy storage field, and also set annual goals. Over the past year, the Company has actively
planned around the integrated energy service industry chain to actively participate in the establishment of equity
fund for new energy storage industry in Shenzhen. We leveraged the energy storage fund's synergy and
empowerment in terms of capital, industrial ecology, business resources, M&A opportunities, etc., so as to
promote the Company's business innovation and expansion and industrial upgrading; meanwhile, we prepared
the Company's five-year strategic plan to specify the its strategic positioning for the next five years, including
specific ideas and measures, comprehensively leading the Company's transformation and development in the
next stage. All subsidiaries found their own correct path for transformation and development. In the face of
difficulties and challenges, they never gave up but worked hard with perseverance. All the staff from top to
bottom made joint efforts to resolutely achieve the common goal. Finally, we successfully completed the annual
goal. First, we revitalized those inefficient assets. When facing difficulties such as unplanned downtime, land
acquisition and storage, and employee resettlement, despite many challenges and huge pressures such as few
previous lessons to draw on, great difficulty, wide involvement, urgent schedule, complex work nodes, the
Shenzhen Nanshan Power Zhongshan Company still achieved significant progress and three breakthroughs. As
we could see that Zhongshan Company's unit shutdown was approved, the land purchase and storage agreement
was implemented, and employee placement was smoothly resolved, all these greatly reduced the Company's
operating pressure and cost burden, laying a solid foundation for the Company's transformation and
development of its main business. Second, we activated the existing power. With its key breakthroughs and
innovative achievements in technology, engineering, and management in the field of gas turbine power plant
construction for many years, Shenzhen Nanshan Power Engineering Company, previously rated as a national
"high-tech enterprise", was successfully selected as the 2023 Shenzhen "specialized, refined, differential and
innovation small and medium-sized enterprises"; the "construction, operation, management and maintenance"
management platform established in the field of new energy and energy storage grasped the general trend to
seize the maintenance service market; meanwhile, we actively developed domestic maintenance service
business, and concluded multiple contracts. Third, we explored market opportunities. Shenzhen Nanshan Power
Environmental Protection Company actively explored and expanded project opportunities in industrial and
commercial energy storage field. It successfully developed the Zhaochi energy storage project, and at the same
time obtained the trading qualification of a power sales company, achieving a new breakthrough in its
transformation and development into an integrated energy service provider. Fourth, we optimized the business
structure. Xiefu Company seized opportunities to carry out the property lease management service business of
Shenzhen Energy Corporation. It increased its profitability by grasping this business opportunity.



                                                        18
                                                          Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

(4) Focusing on strengthening management through innovation and change. In 2023, the Company adhered to
the concept of "only innovators advance, only innovators are strong, and only innovators win". Aiming at the
direction of the Company's strategic transformation, while comprehensively implementing the adjustment and
optimization of the industrial layout, we established and improved the market-oriented institutional mechanism
compatible with the transformation and development. These initiatives laid the foundation for comprehensive
standardized management of the Company. Additionally, we deepened the reform with a focus on improving
the vitality and efficiency of the Company's system with a mindset of innovation and pursuit of change. First,
we advanced the construction of the Company's compliance management system in a scientific and orderly
manner in line with state-owned assets supervision. We vigorously promoted the construction of a compliance
culture, standardized working mechanisms, and optimized business processes. We also continuously carried out
institutional system sorting work to optimize and improve work. During the year, 134 new systems were added
and revised to comprehensively reconstruct the Company's management system and improve the
standardization of the Company's operations. Second, we strengthened the foundation of the team by optimizing
personnel service. We deeply promoted the reform of the personnel selection and employment mechanism,
comprehensively implemented the rectification of personnel selection and employment issues. We introduced a
series of management systems for the selection and appointment of middle-level cadres in order to standardize
and improve related work processes such as cadre selection and appointment, employee recruitment and
promotion; we scientifically formulated and assigned positions and staffing plans to strengthen the rigid
restrictions on job allocation; we innovated senior management job competition and contractual management.
We established an motivation & restriction assessment mechanism for senior management in order to strengthen
the application of performance assessment results. These initiatives effectively stimulated the overall dynamics
and vitality within the Company, and enabled the Company's transformation and development. Third, we made
general reforms to fully promote the Company's systematization and informatization construction. We
innovated the intelligent management model by completing the optimization and upgrade of the OA system. We
successfully created an efficient and intelligent office platform that met the needs of the Company's
standardization, process and fine management, significantly improving our operating efficiency; we
comprehensively upgraded the financial information system, simultaneously promoted the standardization and
regularization of accounting basics, so as to help the Company's financial accounting system transform to
unified management and control, and improve financial management efficiency and level. Fourth, we made
overall arrangements to consolidate comprehensive budget management and control capabilities. We
comprehensively upgraded the budget management concept. We transformed into comprehensive and proactive
budget control by using budget control tools; we carried out in-depth economic operation regulation work to
enhance the economic operation regulation level and improve the operation briefing system, so as to support the
achievement of operating performance.

(5) Creating a clean and upright ecosystem under the guidance of the Party. In 2023, the Company thoroughly
implemented Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the spirit of the
20th National Congress of the Communist Party of China. We strengthened Party leadership and Party building
with a high political stance. With the goal of high-quality party building to promote high-quality development,
and with the focus on strengthening the foundation of party building and reinforcing "one post & two
responsibilities" system, we promoted the integration of party building and business. The first is to learn, think
and practice and strengthen theoretical arming. Adhering to the guidance of party building, we conscientiously
organized, studied and implemented the important instructions of General Secretary Xi Jinping’s series of
important speeches; adhering to the unity of learning, thinking and application, and the unity of knowledge,
belief and action, we transformed the results of party building work into important measures to guide and
                                                        19
                                                           Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

promote the Company's operation and development; we regularly organized theoretical study, center group
study and first topic study, and carried out concentrated study and seminars. The second is to continue to
consolidate the foundation of party building. We established and improved party building rules and regulations,
improved the rules of procedure for party committee meetings, and strengthened the leadership role of the party
committee in "guiding the direction, managing the overall situation, and ensuring implementation"; we
strengthened the construction of organizational teams and recruited full-time party cadres, so as to enhance the
role of grassroots party organizations as a fighting fortress. The third is to make sure the fulfillment of
responsibilities to strengthen the construction of a clean and upright ecosystem for party building. We continued
to promote the responsibility system for a clean and upright ecosystem for party building by strengthening work
style construction and strictly implementing inner-party supervision. We conscientiously implemented the work
of "eliminating the four forms of decadence" to establish new practices. We ensured the fulfillment of
responsibilities to comprehensively and strictly administering the party. We consolidated the organizational
foundation of discipline inspection and supervision by establishing a discipline inspection and supervision
office; meanwhile, we improved relevant working mechanisms to effectively strengthen self-supervision, and
purify the political ecology.

In 2023, the Company reported operating revenue of RMB 589,780,200, with net profit attributable to
shareholders of the listed company of RMB 4,158,800, and basic earnings per share of RMB 0.0069.

2. Revenue and costs

(1) Composition of operating revenue

                                                                                                     Unit: RMB

                                   2023                                    2022
                                                                                                   Year-on-year
                                          Proportion to                           Proportion to
                                                                                                    increase or
                        Amount              operating            Amount             operating
                                                                                                     decrease
                                             revenue                                 revenue
 Total operating
                     589,780,190.71               100%         694,227,657.28             100%           -15.05%
 revenue
 By sector
 Power industry      588,370,570.20              99.76%        692,615,690.26            99.77%          -15.05%
 Others                1,409,620.51               0.24%          1,611,967.02             0.23%          -12.55%
 By product
 Power industry                                                                                          -13.52%
 - power
                     562,688,722.91              95.41%        650,670,587.61            93.73%
 production and
 sales
 Power industry                                                                                          -38.77%
 -integrated           25,681,847.29              4.35%         41,945,102.65             6.04%
 energy service
 Others                 1,409,620.51              0.24%          1,611,967.02             0.23%          -12.55%
 By region
 Domestic            589,780,190.71            100.00%         694,227,657.28          100.00%           -15.05%
 Sales mode
                                                          20
                                                             Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


 Direct sales         589,780,190.71           100.00%        694,227,657.28           100.00%             -15.05%

(2) Industries, products, regions, and sales models that account for more than 10% of the Company's
operating revenue or operating profit

Applicable        □ Not applicable

The Company shall comply with the disclosure requirements for power supply industry in the Shenzhen Stock
Exchange Listed Company Self-Regulatory Guidelines No. 3 - Industry Information Disclosure

                                                                                                        Unit: RMB

                                                                                                          Year-on-
                                                                       Year-on-year    Year-on-year
                                                                                                            year
                                                                        increase or     increase or
                       Operating                          Gross                                          increase or
                                       Operating costs                  decrease in     decrease in
                        revenue                           margin                                         decrease in
                                                                         operating       operating
                                                                                                            gross
                                                                          revenue          costs
                                                                                                           margin
 By product
 Power industry
 - power
                     562,688,722.91    572,117,240.68         -1.68%       -13.52%           -26.63%        18.16%
 production and
 sales
 By region
 Domestic            589,780,190.71    581,442,543.98         1.41%        -15.05%           -27.74%        17.32%
 By sales mode
 Direct sales        589,780,190.71    581,442,543.98         1.41%        -15.05%           -27.74%        17.32%

Reasons for major changes in relevant financial indicators

□Applicable  Not applicable

(3) Whether the Company's physical sales revenue is greater than its labor service revenue

Yes □ No

                                                                                                      Year-on-year
     Industry              Item              Unit                 2023                2022             increase or
                                                                                                        decrease
                                       100 million
                     Sales volume                                        6.54                8.58          -23.78%
                                       KWH
                                       100 million
 Power industry      Production                                          6.57                8.60          -23.60%
                                       KWH
                                       100 million
                     Inventory                                           0.00                0.00                    -
                                       KWH

Explanation for relevant data changed by more than 30% year-on-year

□Applicable  Not applicable


                                                         21
                                                                Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


(4) Performance of the major sales contracts and major procurement contracts signed by the Company as
of the reporting period

□Applicable  Not applicable

(5) Composition of operating costs

Industry and product classification

                                                                                                           Unit: RMB

                                              2023                                  2022
                                                                                                          Year-on-year
                                                      Proportion                            Proportion
 Industry           Item                                                                                   increase or
                                     Amount          to operating          Amount          to operating
                                                                                                            decrease
                                                         costs                                 costs
 Power
             Fuel                 470,823,746.78            80.98%       661,182,466.78        82.17%         -28.79%
 industry
             Employee
 Power
             compensatio           39,310,209.34            6.75%         37,731,564.54         4.69%           4.18%
 industry
             n
             Depreciation
 Power
             and                   26,880,870.06            4.62%         28,340,291.45         3.52%          -5.15%
 industry
             amortization
 Power
             Others                44,166,016.19            7.60%         77,166,066.61         9.59%         -42.76%
 industry
 Others      Others                   261,701.61            0.05%           258,934.10          0.03%           1.07%



                                                                                                           Unit: RMB

                                                     2023                            2022
                                                              Proporti                        Proporti    Year-on-year
      Product              Item                                 on to                           on to      increase or
                                           Amount                             Amount
                                                              operatin                        operatin      decrease
                                                               g costs                         g costs
 Power industry -
 power
                       Fuel             470,823,746.78        80.98%        661,182,466.78     82.17%         -28.79%
 production and
 sales
 Power industry -
                       Employee
 power
                       compensati        37,939,920.55         6.52%         37,731,564.54      4.69%           0.55%
 production and
                       on
 sales
 Power industry -      Depreciatio
 power                 n and
                                         26,880,870.06         4.62%         28,340,291.45      3.52%          -5.15%
 production and        amortizatio
 sales                 n
                                                              22
                                                          Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


 Power industry -
 power
                      Others             36,472,703.29    6.27%       52,478,923.00       6.52%          -30.50%
 production and
 sales
 Power industry -
                      Engineering
 integrated energy                        9,063,601.69    1.56%       24,687,143.61       3.07%          -63.29%
                      labor
 service
 Others               Others                261,701.61    0.05%          258,934.10       0.03%            1.07%

Remark

The Company's operating costs are mostly from natural gas. In 2023, the Company's cost of natural gas
accounted for 80.98% of operating costs; in 2022, the Company's cost of natural gas accounted for 82.17% of
operating costs.

(6) Whether there are changes in the consolidation scope during the reporting period

Yes □ No

As of December 31, 2023, there were a total of 8 entities included in the Company's consolidated financial
statements, one less than the beginning of the period. The main reason was that during the reporting period, the
business strategy of Shenzhen Nanshan Power Zhongshan Company adjusted. In view of the fact that the
Company's controlling subsidiary Shenzhen Nanshan Power (Zhongshan) Warehousing Co., Ltd. has no
substantive operations, so there was no need for existence. As a result, we made the cancellation of registration
for the company on December 13, 2023.

(7) Significant changes or adjustments to the Company's business, products or services during the
reporting period

□Applicable  Not applicable

(8) Major sales customers and major suppliers

The Company's main sales customers

 Total sales amount of top five customers (RMB)                                                   588,238,682.41
 Ratio of the total sales amount of the top five
                                                                                                          99.74%
 customers to total annual sales
 Ratio of sales to related parties in the annual total
                                                                                                           0.00%
 sales of the top five customers

Information on the Company’s top 5 customers

    No.                    Customer name                          Sales (RMB)          Ratio to total annual sales
               Shenzhen Power Supply Bureau Co.,
      1                                                              499,838,060.26                       84.75%
               Ltd.
      2        Guangdong Grid Co., Ltd.                               62,850,661.65                       10.66%
               China Machinery Engineering
      3                                                               24,522,358.98                        4.16%
               Corporation
      4        Dengfeng International Engineering Co.,                   767,924.52                        0.13%
                                                         23
                                                           Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                Ltd.
                Sinohydro Engineering Bureau 8 Co.,
      5                                                                    259,677.00                       0.04%
                Ltd.
    Total       --                                                     588,238,682.41                      99.74%

Other information on major customers

□Applicable  Not applicable



The Company's main suppliers

 Total purchase amount of top five suppliers (RMB)                                                 504,438,800.25
 Ratio of the total purchase amount of the top five
                                                                                                           99.16%
 suppliers to the total annual purchase amount
 Ratio of purchase amount of related parties among the
                                                                                                            0.00%
 top five suppliers to the total annual purchase amount

Information on the Company's top 5 suppliers

                                                                                           Ratio to total annual
      No.                        Supplier name                 Purchase amount (RMB)
                                                                                            purchase amount
          1          Shenzhen Gas Group Co., Ltd.                      284,515,538.23                      55.93%
                     CNOOC Gas & Power Group Co.,
          2                                                            189,023,738.54                      37.16%
                     Ltd.
                     Shenzhen Power Supply Bureau Co.,
          3                                                             21,297,990.54                       4.19%
                     Ltd.
                     Shenzhen Water and Environment
          4                                                              6,686,147.73                       1.31%
                     (Group) Co., Ltd.
                     Zhongshan Power Supply Bureau of
          5                                                              2,915,385.21                       0.57%
                     Guangdong Grid Co., Ltd.
     Total           --                                                504,438,800.25                      99.16%

Other information on major suppliers

□Applicable Not applicable

3. Cost

                                                                                                      Unit: RMB

                                                                        Year-on-year           Description       of
                          2023                   2022
                                                                        increase or decrease   significant changes
                                                                                               The Company's
                                                                                               continued
 Selling and
                                                                                               strengthening of
 distribution                     2,831,748.65            375,055.78               655.02%
                                                                                               project
 expenses
                                                                                               development and
                                                                                               vigorous expansion
                                                          24
                                                         Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                                                                           of business in the
                                                                                           field of integrated
                                                                                           energy service have
                                                                                           led to a year-on-
                                                                                           year increase in the
                                                                                           selling and
                                                                                           distribution
                                                                                           expenses
                                                                                           The Company
                                                                                           strengthened
                                                                                           comprehensive
                                                                                           budgetary control
                                                                                           and strictly
                                                                                           controlled all kinds
 G&A expenses                58,330,596.87        79,099,350.54                -26.26%
                                                                                           of non-essential and
                                                                                           non-urgent
                                                                                           expenses, which
                                                                                           resulted in a year-
                                                                                           on-year decrease in
                                                                                           G&A expenses
                                                                                           The optimization of
                                                                                           asset and liability
                                                                                           structure of the
                                                                                           Company has led to
 Financial expenses          11,579,637.38        32,142,802.50                -63.97%     a decrease in
                                                                                           financing scale, and
                                                                                           a year-on-year
                                                                                           decrease in
                                                                                           financial expenses
 R&D expenses                26,839,912.74        25,647,534.39                    4.65%

4. R&D investment

Applicable      □ Not applicable

                                                                                      Expected impact on the
 Name of main R&D
                             Purpose           Progress       Goals to be achieved      Company's future
      project
                                                                                          development
                       The R&D of the                        Complete the            Improve the safety and
                       overall upgrade of                    upgrade and             reliability of power
 R&D of intelligent    the #3 gas turbine                    transformation of       production, effectively
 fire protection       CO2 fire protection                   the gas turbine CO2     ensure the stable
                                             Completed
 device for gas        system can                            fire protection         operation of the unit, and
 turbine               effectively secure                    system and created      enhance the technological
                       the unit's safe                       an intelligent          content and core
                       operation and                         equipment               competitiveness of the
                                                    25
                                                           Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                     reliability; scientific                   management model.        Company's products and
                     and reasonable                                                     services.
                     selection of
                     modified products
                     to ensure the stable
                     operation of the
                     unit.
                     We aim to optimize
                     the structure of the
                     atomizing steam
                                                               Complete the
                     pipe through R&D;                                                  Improve the performance
                                                               optimization of
                     meanwhile, it is                                                   of equipment, optimize
                                                               built-in atomized air
R&D of built-in      transformed from                                                   the system structure of
                                                               pipeline structure for
atomized air         the outside of the                                                 equipment, eliminate
                                                               steam turbine high-
pipeline structure   valve body to the                                                  safety hazards, and
                                               Completed       pressure bypass;
for steam turbine    inside of the valve                                                enhance the technological
                                                               meanwhile, new
high-pressure        body, so that the                                                  content and core
                                                               technologies are
bypass               direction of the                                                   competitiveness of the
                                                               used to eliminate
                     atomizing steam                                                    Company's products and
                                                               potential safety
                     pipe is improved                                                   services.
                                                               hazards.
                     and safety hazards
                     are completely
                     eliminated.
                     The modification
                     and development of
                     the unit's jacking oil
                     pump system and                           Complete the
                                                                                        Optimize and improve
                     pipelines can                             upgrade and
                                                                                        equipment performance,
                     eliminate the                             transformation of
                                                                                        improve the operation
                     operational safety                        the unit's jacking oil
                                                                                        safety and reliability of
                     hazards of the                            pump system and
R&D of jacking oil                                                                      the equipment, enhance
                     jacking oil pump,                         pipeline
pump system of gas                                                                      the work efficiency of
                     so that the                               performance;
turbine based on                               Completed                                inspection personnel,
                     reliability of the                        meanwhile, focus on
automatic                                                                               eliminate safety hazards,
                     equipment can be                          the innovative use of
adjustment                                                                              and enhance the
                     effectively                               excellent
                                                                                        technological content and
                     improved, and at                          technologies, so as
                                                                                        core competitiveness of
                     the same time the                         to solve technical
                                                                                        the Company's products
                     efficiency of                             difficulties of the
                                                                                        and services.
                     operation,                                equipment.
                     inspection and
                     maintenance can be
                     improved.
R&D of black start   Through R&D of            Completed       Optimize the             Conduct in-depth

                                                      26
                                                        Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


of gas turbine       electrochemical                        electrochemical        research to improve
power plants based   energy storage                         energy storage         equipment performance,
on electrochemical   systems, system                        system; reasonably     optimize energy storage
energy storage       parameter data can                     adopt new data         systems, improve power
system               be optimized to                        parameters to          supply reliability, and
                     further improve                        optimize black start   enhance the technological
                     power supply                           and auxiliary          content and core
                     reliability; the                       frequency regulation   competitiveness of the
                     upgrade of energy                      functions, so as to    Company's products and
                     storage system can                     improve power          services.
                     activate black start                   supply reliability.
                     function and
                     auxiliary frequency
                     modulation
                     function.
                     Apply the silver-
                     based solder in the
                     research and
                     development of
                     upgrading the
                     exciter armature                                              Proactively pursue the
                     coil-specific                                                 development of new
                                                            Application of new
Research and         connecting piece.                                             technologies aimed at
                                                            materials and new
development of       This reduces the                                              improving the operational
                                                            welding
exciter rotor        likelihood of the                                             efficiency of units,
                                                            technologies to
armature-specific    connecting piece                                              extending stable
                                            Completed       improve the service
connecting piece     breaking due to                                               operation cycles, and
                                                            life of the exciter
using silver         thermal stress and                                            elevating the
                                                            rotor armature-
soldering            interference from                                             technological content and
                                                            specific connecting
technology           the high-speed                                                core competitiveness of
                                                            piece.
                     rotation of the                                               the Company's products
                     exciter armature                                              and services.
                     coil, thereby
                     ensuring prolonged
                     and stable operation
                     of the gas turbine
                     generator.
Research and         Upgrade research                       Creation of a new      Conduct in-depth
development of       and development of                     parallel operation     research on the
circulating water    the gas turbine                        mode for gas turbine   technological innovation
cooling system for   cooling water          Completed       cooling water          and application of
thermal power        system to eliminate                    systems to improve     equipment, use new
plants with two      the risk of                            the efficiency of      technologies to reduce
plate heat           equipment leakage                      circulating water      the adverse effects of

                                                   27
                                                              Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


 exchangers              and hidden dangers                       cooling.               unstable equipment
 operating in parallel   that may                                                        operation, improve
                         compromise the                                                  equipment performance,
                         safe and stable                                                 and enhance the
                         operation of units,                                             technological
                         thereby improving                                               sophistication and core
                         the operating                                                   competitiveness of the
                         reliability of unit                                             Company's products and
                         and improving the                                               services.
                         working efficiency
                         of circulating water
                         cooling.
                         Study the frequency
                         modulation
                         technique for                                                   Conduct in-depth
                         connecting the                           Complete upgrade       research on the
                         high-pressure motor                      and transformation     technological innovation
 Research and
                         of water supply to                       of the frequency       and development of
 development of
                         the boiler, ensure                       modulation             equipment to effectively
 energy-saving
                         energy-efficient                         technique for          reduce operating energy
 devices for high-
                         operation of boiler                      connecting the high-   consumption of units,
 pressure feed water                              Completed
                         water supply. This                       pressure motor of      improve equipment
 pumps of power
                         approach                                 water supply to the    safety, and enhance the
 plant boilers based
                         effectively reduces                      boiler to reduce the   technological
 on frequency
                         factory power                            power consumption      sophistication and core
 modulation
                         consumption while                        of the boiler in the   competitiveness of the
                         enhancing the                            water supply plant.    Company's products and
                         safety of the boiler's                                          services.
                         water supply
                         system.

R&D staff

                                          2023                         2022                    Change ratio
 Number of R&D staff                                   87                          71                     22.54%
 Proportion of number of
                                                  30.63%                       18.59%                     12.04%
 R&D staff
 Educational structure of R&D staff
 Undergraduate                                         47                          34                     38.24%
 Postgraduate                                           1                           1                      0.00%
 Age composition of R&D staff
 Under 30 years old                                    16                           6                    166.67%
 30-40 years old                                       10                           8                     25.00%
 Over 40 years old                                     61                          57                      7.02%

R&D investment of the Company
                                                            28
                                                            Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                        2023                         2022                     Change ratio
 Amount of R&D
                                         26,839,912.74                 25,647,534.39                         4.65%
 investment (RMB)
 Ratio of R&D investment
                                                   4.55%                       3.69%                         0.86%
 in the operating revenue
 Amount of R&D
                                                    0.00                        0.00                         0.00%
 investment (RMB)
 Ratio of capitalized R&D
 investment in R&D                                 0.00%                       0.00%                         0.00%
 investment

Reasons and impacts of major changes in the Company's R&D staff composition

Applicable       □ Not applicable

The number of R&D staff holding bachelor's degree increased by 38.24% compared with 2022, and the number
of personnel under 30 years old grew by 166.67% compared with 2022. This is mainly due to factors such as
personnel changes related to entry, resignation, and retirement, as well as adjustments to R&D staff based on the
needs of R&D projects. The Company's number of R&D staff meets the ratio requirements of national high-tech
enterprise.

Reasons for the significant change in the proportion of total R&D investment in operating revenue compared
with the previous year

□Applicable  Not applicable

Reasons for substantial changes R&D investment capitalization rates and their rationale

□Applicable  Not applicable

5. Cash flow

                                                                                                     Unit: RMB

                                                                                          Year-on-year increase
               Item                         2023                        2022
                                                                                               or decrease
 Sub-total of cash inflows
                                            739,641,073.57           1,141,649,432.06                    -35.21%
 from operating activities
 Sub-total of cash outflows
                                            840,013,050.49             934,481,029.80                    -10.11%
 from operating activities
 Net cash flows from
                                           -100,371,976.92             207,168,402.26                   -148.45%
 operating activities
 Sub-total of cash inflows
                                            749,228,184.97             178,535,035.18                   319.65%
 from investing activities
 Sub-total of cash outflows
                                            456,538,387.59             283,315,286.80                     61.14%
 from investing activities
 Net cash flows from
                                            292,689,797.38            -104,780,251.62                   379.34%
 investing activities
 Sub-total of cash inflows                  421,093,926.90           1,089,969,316.66                    -61.37%
                                                           29
                                                            Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


 from financing activities
 Sub-total of cash outflows
                                             950,780,554.86            1,234,410,158.23                     -22.98%
 from financing activities
 Net cash flows from
                                            -529,686,627.96             -144,440,841.57                   -266.72%
 financing activities
 Net increase in cash and cash
                                            -337,286,752.50              -41,582,961.53                    -711.12%
 equivalents

Explanation of the main factors affecting significant year-on-year changes in relevant data

Applicable       □ Not applicable

(1) During the reporting period, cash inflows from operating activities decreased by 35.21% year-on-year,
mainly due to the receipt of refunds for VAT retained for future offsetting, RMB 330 million, in the same period
last year. There was no such cash inflow this year, and cash inflows from operating activities decreased year-on-
year.

(2) During the reporting period, net cash flows generated from operating activities decreased by 148.45% year-
on-year, mainly due to the receipt of refunds for VAT retained for future offsetting in the same period last year.
There was no such cash inflow this year, and net cash flows from operating activities decreased year-on-year.

(3) During the reporting period, cash inflows from investing activities increased by 319.65% year-on-year,
mainly due to the recovery of financial assets held for trading the current period, and cash inflows from
investing activities increased year-on-year.

(4) During the reporting period, cash outflows from investing activities increased by 61.14% year-on-year,
mainly due to the increase in large-amount negotiable certificates of deposit for the current period, resulting in a
year-on-year increase in cash outflows from investing activities.

(5) During the reporting period, net cash flows from investing activities increased by 379.34% year-on-year,
mainly due to the recovery of financial assets held for trading during the current period, and net cash flows from
investing activities increased year-on-year.

(6) During the reporting period, cash inflows from financing activities decreased by 61.37% year-on-year. This
was mainly due to the optimization of asset and liability structure during the current period, the reduction in
financing scale, and the year-on-year decrease in cash inflows from financing activities.

(7) During the reporting period, net cash flows from financing activities decreased by 266.72% year-on-year,
mainly due to the optimization asset and liability structure and the reduction of financing scale the current
period, resulting in a year-on-year decrease in net cash flows from financing activities.

(8) During the reporting period, net increase in cash equivalents decreased by 711.12% year-on-year, mainly
due to the receipt of refunds for VAT retained for future offsetting in the same period last year. There was no
such cash inflow this year, which affected the decrease in net cash flows from operating activities; The
Company optimized its asset and liability structure and reduced financing scale, which led to the decrease in net
cash flows financing activities.

Explanation of the reasons for the significant difference between the net cash flow generated by the Company's
operating activities during the reporting period and net profit for the year

                                                         30
                                                            Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

Applicable       □ Not applicable

During the reporting period, there was a significant difference between the Company's net cash flows from
operating activities of RMB -100,372,000 and the net profit of RMB -2,005,700 for the year, which was mainly
due to the combined effect of investment income, amortization of deferred income, changes in operating
receivables and payables, depreciation and amortization and other non-cash expenses, and financial expenses, of
which the major items were: (1) investment income of RMB 34,997,900, which was included in net profit for
the year but did not affect the net cash flows from operating activities; (2) new advances to suppliers amounting
to RMB 22,546,200 were made during the year, which reduced net cash flows from operating activities but did
not affect net profit for the year; (3) government subsidies related to assets received in previous years
amounting to RMB 17,043,700 were allocated from other income and included in net profit for the current year
but did not affect the net cash flows from operating activities.

V. Analysis of non-main business

Applicable       □ Not applicable

                                                                                                        Unit: RMB

                                                                           Explanation of
                              Amount             Ratio in total profit                              Sustainability
                                                                              causes
                                                                         Mainly due to         Recognized
                                                                         investment income     investment income
                                                                         and dividend          accounted for under
                                                                         income obtained       the equity method is
                                                                         from financial        sustainable
                                                                         assets held for
 Investment income            34,997,898.47              -1,744.93%      trading, as well as
                                                                         investment income
                                                                         accounted for under
                                                                         the equity method
                                                                         and recognized by
                                                                         joint-stock
                                                                         companies
                                                                         Mainly due to
                                                                         provision for
 Asset impairment               -162,985.78                    8.13%                           No
                                                                         inventory
                                                                         depreciation
                                                                         Mainly due to the
                                                                         receipt of the
                                                                         compensation for
 Non-operating                                                           power outage by
                              11,687,001.25                -582.69%      Shenzhen Nanshan      No
 revenue                                                                 Power Zhongshan
                                                                         Company and
                                                                         Nanshan Power
                                                                         Plant this year
 Non-operating                                                           Mainly due to
                                     66,116.23                 -3.30%                          No
 expenses                                                                losses, damage and
                                                          31
                                                        Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                                                    scrapping of non-
                                                                    current assets, etc.

VI. Analysis of assets and liabilities

1. Major changes in asset composition

                                                                                                     Unit: RMB

                          End of 2023               Beginning of 2023         Increase
                                                                                 or
                                     Ratio of                       Ratio     decrease         Description of
                      Amount           total        Amount         of total      in         significant changes
                                      assets                        assets    proporti
                                                                                 on
                                                                                           Mainly due to the
                                                                                           increase in debt
 Monetary                                                           25.92
                  316,188,782.49         15.43%   675,496,266.40              -10.49%      repayment and large-
 funds                                                                 %
                                                                                           amount negotiable
                                                                                           certificate of deposit
 Accounts
                   111,975,251.10        5.46%    135,833,492.64    5.21%       0.25%
 receivable
 Contract
                        88,000.00        0.00%       217,009.58     0.01%      -0.01%
 assets
 Inventories        86,158,251.16        4.20%     85,279,298.35    3.27%       0.93%
 Investment
                     1,664,566.60        0.08%      1,833,344.20    0.07%       0.01%
 properties
 Long-term
 equity             90,001,176.04        4.39%     83,496,098.24    3.20%       1.19%
 investments
                                                                    22.69
 Fixed assets     571,482,734.35         27.89%   591,290,204.31                5.20%
                                                                       %
 Construction
                     3,448,855.10        0.17%      4,861,062.16    0.19%      -0.02%
 in progress
 Right-of-use
                     2,266,946.42         0.11%     7,707,617.90    0.30%      -0.19%
 assets
                                                                                           Mainly due to the
                                                                                           optimization asset and
 Short-term                                                         33.76                  liability structure and
                  341,237,886.72         16.65%   879,957,857.44              -17.11%
 borrowings                                                            %                   the repayment of
                                                                                           short-term borrowings
                                                                                           in the current period
 Long-term
                    58,829,426.30        2.87%     28,019,758.68    1.08%       1.79%
 borrowings
 Lease
                                         0.00%      2,262,160.03    0.09%      -0.09%
 liabilities

                                                       32
                                                           Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                                                                        Mainly due to the
                                                                                        redemption of trading
 Financial
                                                                      16.88             financial products
 assets held       226,000,000.00        11.03%      440,013,571.10            -5.85%
                                                                         %              purchased with
 for trading
                                                                                        existing funds of the
                                                                                        current period
                                                                                        Mainly due to the
 Other current                                                                          increase in large-
                   232,865,968.63        11.36%      188,248,840.44   7.22%     4.14%
 assets                                                                                 amount negotiable
                                                                                        certificate of deposit
                                                                                        Mainly due to the
                                                                                        increase in land
                                                                                        acquisition and
                                                                                        storage of the current
                                                                                        period in Shenzhen
                                                                                        Nanshan Power
 Other non-
                    36,157,735.24        1.76%         5,371,398.18   0.21%     1.55%   Zhongshan Company,
 current assets
                                                                                        suspension of
                                                                                        production and
                                                                                        business, payment of
                                                                                        employee
                                                                                        compensation and
                                                                                        relocation expenses
 Other
 investments                                                          11.53
                   300,615,000.00        14.67%      300,615,000.00             3.14%
 in equity                                                               %
 instruments
                                                                                        Mainly due to the
                                                                                        receipt of land
 Other non-                                                                             acquisition and
 current           104,045,112.54        5.08%            47,511.72   0.00%     5.08%   storage progress
 liabilities                                                                            payment by Shenzhen
                                                                                        Nanshan Power
                                                                                        Zhongshan Company

Overseas assets account for a high proportion

□Applicable  Not applicable

2. Assets and liabilities measured at fair value

Applicable        □ Not applicable

                                                                                                   Unit: RMB

               Beginnin      Profit or    Cumulati    Provision   Purchase     Sales      Other       Ending
    Item
               g balance    loss from      ve fair       for       amount     amount     changes      balance
                                                          33
                                                       Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                           changes      value     impairme       of the       the
                            in fair    changes     nt of the    current     current
                           value of   included      current     period      period
                              the     in equity     period
                           current
                            period
 Financial assets
 1.
 Financial
 assets
 held for
 trading       440,013,5                                       931,000,0   1,145,013              226,000,0
 (excludin         71.10                                           00.00     ,571.10                  00.00
 g
 derivative
 financial
 assets)
 2.
 Derivativ
 e
 financial
 assets
 3. Other
 debt
 investme
 nts
 4. Other
 investme
 nts in        300,615,0                                                                          300,615,0
 equity            00.00                                                                              00.00
 instrumen
 ts
               740,628,5                                       931,000,0   1,145,013              526,615,0
 Total
                   71.10                                           00.00     ,571.10                  00.00
 Financial
                    0.00                                            0.00        0.00       0.00        0.00
 liabilities

Other changes

Whether there are significant changes in the measurement attributes of the Company's main assets during the
reporting period

□Yes  No




                                                     34
                                                         Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


3. Restrictions of asset rights as of the end of the reporting period

                                                                         Balance at the end of the previous
               Item                       Ending balance (RMB)
                                                                                    year (RMB)
Deposit for bank acceptance bills                                 0.00                       27,474,594.34
L/G deposit                                              5,453,862.93                                  0.00
Total                                                    5,453,862.93                        27,474,594.34



VII. Investment status analysis

1. Overall situation

Applicable      □ Not applicable

    Investment amount during the         Investment amount during the
                                                                                    Range of change
       reporting period (RMB)             same period last year (RMB)
                0.00                             100,000,000.00                         -100.00%

2. Major equity investments acquired during the reporting period

□Applicable Not applicable

3. Major ongoing non- equity investments during the reporting period

□Applicable Not applicable

4. Financial assets investment

(1) Securities investment situation

□Applicable Not applicable

The Company had no securities investments during the reporting period.

(2) Derivatives investment situation

□Applicable Not applicable

The Company had no derivative investments during the reporting period.

5. Usage of raised funds

□Applicable Not applicable

The Company has not used the raised funds during the reporting period.

VIII. Major asset and equity sales

1. Sale of major assets

Applicable □ Not applicable



                                                       35
                                                            Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report




                               Net                                                                  Whet
                              profi                                                                  her it
                                 t                                                                     is
                              cont                                                                  imple
                              ribut                                                                 mente
                                ed                 Rati                                              d as
                                by                 o of                                             plann
                               the                  net                                                ed
                                                                                    Whe
                              asset                profi                                            and as
                                                                            Rela     ther   Whe
                                to                    t               W                             sched
                                                                            tions   have     ther
                               the                 cont               he                             uled.
                                                                             hip      all     all
                              liste                ribut              th                            If it is
                                                                            with      the     the
                      Tran       d                   ed               er                              not
                                                                             the    prop     clai
                      sacti   com                   by                 it                           imple
                                                                            coun     erty     ms               Dis
                       on     pany    Impact of    asset   Pricing     is                           mente
Cou                                                                         terpa   right    and               clo
        Asse   Date   price   from      the sale   sales   principl   re                             d as            Disclo
nter                                                                          rty    s of   debt               sur
         ts     of      s      the       on the      to     es of     lat                           plann             sure
part                                                                        (app      the      s                e
        sold   sale   (RM     begi    Company       the     asset     ed                              ed,            index
 y                                                                          licab   asset   invo               dat
                        B     nnin     (Note 3)    liste     sale      tr                             the
                                                                            le to      s    lved                e
                      10,0     g of                   d               an                            reaso
                                                                            relat   invo    have
                       00)     the                 com                sa                            ns and
                                                                              ed    lved    been
                              curr                 pany               cti                             the
                                                                            trans   been    trans
                               ent                   in               on                            measu
                                                                            actio   trans   ferre
                               peri                 the                s                              res
                                                                             ns)    ferre      d
                              od to                total                                              the
                                                                                       d
                               the                  net                                             Comp
                              date                 profi                                              any
                                of                    t                                               has
                               sale                                                                 taken
                              (RM                                                                   shoul
                                B                                                                    d be
                              10,0                                                                  explai
                               00)                                                                   ned.
Zho     Shen                          This land            It is                                               No    Annou
ngsh    zhen   Dec                    acquisitio           based                                               ve    nceme
                                                                                            Not
an      Nan    emb    58,4            n and                on the                                              mb    nt No.:
                                                   0.00               N                     appli
Cuih    shan   er     45.3    0.00    storage              Asset                    No              Yes        er    2023-
                                                   %                  o                     cabl
eng     Pow    12,    5               matter               Apprais                                             8,    048;
                                                                                            e
New     er     2023                   may                  al                                                  20    Annou
Distr   Zho                           revitalize           Report                                              23    nceme
                                                           36
                              Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


ict    ngsh     the          issued                                          nt
Man    an       Company      by                                              name:
age    Com      's assets    Guangd                                          Annou
ment   pany     in stock,    ong                                             nceme
Com    has      improve      Zhixin                                          nt on
mitt   three    the          Land                                            matter
ee     state    Company      and                                             s
       -        's cash      Real                                            related
       own      flows,       Estate                                          to land
       ed       reduce       Apprais                                         acquis
       land     the          al Co.,                                         ition
       use      Company      Ltd.                                            and
       right    's           (YZXP                                           storag
       locat    operating    BZ No.                                          e
       ed in    pressure,    [2023]                                          subsid
       Hen      and          1175)                                           iaries
       gme      enable       and                                             held
       n        the          determi                                         Shenz
       Indu     Company      ned                                             hen
       strial   to better    after                                           Nansh
       Zon      focus on     consulta                                        an
       e,       transform    tion                                            Power
       Nanl     ation and    between                                         (Zhon
       ang      develop      the two                                         gshan)
       Stre     ment.        parties.                                        Power
       et,      This is in                                                   Co.,
       Cuih     line with                                                    Ltd.
       eng      the
       New      Company
       Distr    's
       ict,     strategic
       Zho      develop
       ngsh     ment
       an       plan, and
       City     will have
                no major
                impact
                on the
                Company
                's
                productio
                n and
                operation
                s.

                             37
                                                           Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


2. Sale of major equity interests

□Applicable  Not applicable

IX. Analysis of major holding and joint-stock companies

Applicable      □ Not applicable

Information about major subsidiary and joint-stock companies that affect the Company's net profit by more than
10%

                                                                                              Unit: RMB 10,000

              Com                             Registe
 Company                                                 Total                   Operating   Operating
              pany      Main business           red                 Net assets                           Net profit
  name                                                   assets                   revenue     profit
              type                            capital
                      Gas turbine power
                      generation, waste
                      heat power
                      generation, power
                      supply and
                      heating, lease of
                      terminals, oil
 Shenzhen             depots (excluding
 Nanshan              refined oil,
 Power        Subs    excluding                RMB
                                                                            -
 (Zhongsh     idiar   hazardous                746.8    26,831.82                 6,290.86   -3,537.15   -3,119.81
                                                                    53,199.64
 an)          y       chemicals,              million
 Power                excluding
 Co., Ltd.            flammable and
                      explosive
                      materials) and
                      power equipment
                      facilities; Land use
                      rights lease;
                      Nonresidential real
                      estate lease.
                      Technology
                      development for
                      waste heat
 Shenzhen
                      utilization
 New          Subs                             RMB
                      (excluding
 Power        idiar                           113.85    11,292.65    8,223.56    23,514.79   -3,073.99   -3,030.02
                      restricted projects);
 Industrial   y                               million
                      electricity
 Co., Ltd.
                      generation through
                      waste heat
                      utilization;

                                                          38
                                                          Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                     electricity
                     generation through
                     gas turbines.

Shennan
                     Oil products
Energy       Subs                             USD
                     trading and gas
(Singapor    idiar                           900,00    11,797.03   11,732.18              1,580.29   1,627.84
                     turbine spare parts
e) Co.,      y                                    0
                     agency.
Ltd.
Zhuhai
Hengqin
Zhuozhi
Investme
             Subs    Equity                   RMB
nt
             idiar   investments,            141,47    14,150.77   14,150.77               793.35      793.35
Partnershi
             y       venture capital          8,000
p
(Limited
Partnershi
p)
                     Technical
                     consulting services
                     of construction
                     engineering for
                     gas-steam
                     combined cycle
                     power plant
Shenzhen             (stations),
Nanshan              maintenance and
Power                overhaul of
Gas                  operating
Turbine              equipment for gas-
             Subs                             RMB
Engineeri            steam combined
             idiar                                10    9,537.79    3,553.39   4,229.95   -394.47     -354.34
ng                   cycle power plant
             y                               million
Technolo             (stations);
gy                   Engineering
(Shenzhe             management
n) Co.,              services, technical
Ltd.                 services of
                     engineering, power
                     generation, solar
                     power generation,
                     and energy
                     storage, as well as
                     repairs of electrical
                     equipment and
                                                         39
                                                          Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                      general equipment,
                      etc.
                      Import and export
                      of goods and
                      technology,
                      domestic trade
 Shenzhen
              Subs    (excluding              RMB
 Xiefu
              idiar   specialized,             53.3     9,241.04    7,668.08     110.11    -238.22      -63.34
 Energy
              y       exclusively            million
 Co., Ltd.
                      controlled, and
                      exclusively sold
                      goods); real estate
                      agency, etc.
                      Energy storage
                      technology
                      services; Energy
                      saving
 Shenzhen             management
 Nanshan              services; contract
 Power                energy
 Environm             management;
              Subs                            RMB
 ental                technical services
              idiar                               79    5,029.18    4,297.17                  4.95      20.19
 Protectio            of solar power
              y                              million
 n                    generation
 (Shenzhe             technology;
 n) Co.,              centralized fast
 Ltd.                 charging stations;
                      engage in
                      investing activities
                      with self-owned
                      funds.
 Jiangsu
 Liaoyuan
              Parti
 Environm
              cipat   Chemical raw
 ental                                        RMB
              ing     materials,
 Protectio                                    40.75    96,558.01   74,054.06   66,040.43   7,386.62   8,593.73
              com     chemicals and
 n                                           million
              pani    energy
 Technolo
              es
 gy Co.,
 Ltd.

Situation of acquiring and disposing subsidiary during the reporting period

Applicable       □ Not applicable


                                                         40
                                                          Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                                  Methods of acquiring
                                                 and disposing subsidiary      Impact on overall production
                Company name
                                                   during the reporting         operations and performance
                                                          period
    Shenzhen Nanshan Power (Zhongshan)            Cancellation during the       No substantial operational
           Warehousing Co., Ltd.                      current period                     impact

Situation description

During the reporting period, business strategy of Shenzhen Nanshan Power Zhongshan Company was adjusted.
In view of the fact that the Company's controlling subsidiary Shenzhen Nanshan Power (Zhongshan)
Warehousing Co., Ltd. has no substantive operations and there is no need for its existence. The cancellation of
registration was completed on December 13, 2023.

X. Structured entities controlled by the company

□Applicable  Not applicable

XI. Prospects for the Company's future development

1. Analysis of the Company's operating situation in 2024

In 2024, the company's main power business will still face an extremely severe operating situation. First, natural
gas price will remain high. Although the Russia-Ukraine conflict has simmered, the global natural gas supply
situation has shown signs of relaxation as long as there are no new geopolitical emergencies or other
emergencies. Nevertheless, with the domestic economy steadily rebounding and demand gradually rising, it is
less probable for natural gas prices to witness a significant drop. Despite both the long-term contract price and
the anticipated spot-node electricity price in 2024 being low, the potential for cost-revenue inversion in power
generation production persists. Second, the Company still faces a challenging responsibility to ensure the
continuity of power supply. According to the National Electricity Supply and Demand Situation Analysis and
Forecast Report in 2023 and 2024 released by the China Electricity Council, a steady growth in national
electricity consumption is anticipated for 2024. Considering macroeconomic factors and the electrification of
end-use energy, and based on results of forecasting societal electricity consumption through diverse prediction
methodologies, it is projected that the total electricity usage in 2024 will reach 9,800 billion KWH. This
represents a growth of approximately 6% compared to the consumption levels in 2023. It is estimated that the
national maximum power load will be 1.45 billion KW in 2024, an increase of about 100 million KW from
2023. During peak periods in the summer and winter, the national electricity supply and demand situation will
maintain a tight balance. As far as Guangdong Province is concerned, considering economic factors, the scale of
new large-scale users before the summer and the influence of temperature, the maximum regulated load demand
during the summer is expected to be 158,000 MW, a year-on-year increase of 9.2%. The maximum power
planned to receive Western Power is 38,732 MW, a year-on-year decrease of 3.7 %. The Shenzhen area where
the Company is located has a predicted maximum load of 24,000 MW in 2024, a year-on-year increase of
8.76%. While power load demand continues to rise, according to the planning arrangements of the Shenzhen
Municipal Government, Nanshan Power Plant may be reduced from dual gas sources to a single gas source.
This will further increase the difficulty of ensuring fuel supply and further increase the pressure on the
Company to ensure power supply. Third, competition in the spot power market has become increasingly fierce.
On December 29, 2023, the Guangdong spot power market commenced official operations, making Guangdong
the second province after Shanxi to officially operate spot power market. At this stage, spot power market in
                                                        41
                                                          Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

Guangdong Province has established a power market system of "medium and long-term plus spot and ancillary
services", which has clarified the goals of developing a clean, low-carbon, safe and efficient market. As a large
number of new unit with higher energy efficiency and larger capacity come into operation, the Company's
existing 9E unit will be subject to an increasingly unfavorable situation in spot power market.

Although the Company faces difficulties and challenges in operation, management and development, its clear
strategic development direction is highly consistent with the country's requirements to accelerate the planning
and construction of a new energy system, deepen the energy revolution, and achieve the "dual carbon" goals.
Simultaneously, the Company boasts extensive business expertise in the energy and power sectors, and has
nurtured a cadre of proficient technical professionals, establishing a solid foundation for the expansion of
integrated energy services and energy storage operations. The ongoing industrial and commercial energy
storage initiatives, alongside the "construction, operation, management, and maintenance" platforms, as well as
the implementation of photovoltaic and other new energy industry upgrade projects by the Company align
closely with the latest national, provincial, and municipal policy directives. Firmly grasping the pivotal
momentum of new energy's rapid advancement, the Company is transitioning from passive survival to proactive
development, committing wholeheartedly to foster high-quality growth and advancement.

2. Summary of the Company's business plan in 2024

The year 2024 marks the first year for the Company to officially implement its five-year strategic development
plan, and it is also a critical year for the Company to achieve breakthrough progress in its transformation and
development journey. The Company will uphold the guidance of Xi Jinping Thought on Socialism with Chinese
Characteristics for a New Era, adhering to the guidance of high-quality Party building to ensure high-quality
development, actively implementing the important decisions and arrangements of the Party Central Committee
on deepening and improving the reform of state-owned enterprises and the "technological capital" development
strategy of shareholder's agencies. The Company will deepen market-oriented reform, firmly adhere to the
annual overall goal of "achieving fundamental breakthroughs in strategic transformation", make full efforts to
drive the revitalization of the Company's main business.

(1) Stick to the bottom line and make every effort to ensure work safety and stable operations. First, firmly
establish the concept of safe development, further improve the political position, comprehensively consolidate
the main responsibilities, consolidate the foundation of work safety, and make every effort to resolve various
safety risks. Second, combine the Company's transformation and development needs to build a work safety and
technical supervision and management system that is compatible with new businesses and new formats to
protect the Company's diversified business development. Third, comprehensively sort out the Company's safety
management and technical supervision practices, improve the management process, and gradually realize the
standardization, standardization and informatization of safety management and technical supervision. Fourth,
comprehensively collate the Company's emergency plan based on the current situation of the Company's safety
management, organize and complete the revision of the emergency plan, strengthen emergency drills, and
effectively improve the company's emergency management level.

(2) Optimize the layout and continue to promote the revitalization of the main business and strategic
transformation. First, seize policy opportunities, focus on new energy and energy storage, energy utilities, high-
end power equipment and other industrial fields to invest in new projects, and fully promote the implementation
of projects that support the Company's sustainable development. Second, create a professional operation
platform for "investment, construction, operation, management and maintenance" in the field of energy storage,
gradually build a integrated energy service business model, give full play to the advantages of listed companies'
                                                        42
                                                           Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

capital operation platforms and energy storage funds, and increase the layout of energy storage business
expansion. Third, develop an implementation plan for power sales that aligns with the Company's integrated
energy service transformation strategy, ensuring a clear path forward in executing the Company's power sales
initiatives. Carry out power sales based on the implementation plan, and finalize the establishment of an
institutional system related to management of the Company's power sales. Fourth, strive to promote the
transformation and development of non-power enterprises, bolster the development of comprehensive energy
management projects, and establish a sustainable business model; give full play to the role of revitalizing the
system’s assets in stock and effectively absorbing and utilizing personnel, actively explore new business
domains and scale them up effectively.

(3) Innovate while staying true to tradition, turning loss into profit through the management of assets in stock.
First, execute the comprehensive shutdown of units and the disposal of assets at Shenzhen Nanshan Power
Zhongshan Company, make every effort to advance the decommissioning process to ensure the thorough
disposal of all assets; finalize the transfer of land assets and other tasks as stipulated in the relevant land
acquisition and storage agreements. Second, continuously enhance the efficiency of the power trading
mechanism while maintaining comprehensive control over transaction risks. Amidst the upcoming transition to
a single gas source model in 2024, proactive measures will be implemented to reinforce fuel supply assurance
and ensure comprehensive coordination. Prioritizing the maximization of the Company's interests, meticulous
attention will be given to gas and electricity alignment. This approach will effectively fulfill the responsibility
of guaranteeing power supply while simultaneously enhancing the profitability of the power business. Third,
bolster economic operations, intensify unit equipment maintenance, and systematically enhance the marginal
contribution and profitability of power production. This will be achieved through targeted and refined technical
measures and management methodologies. Fourth, make more scientifically sound, reasonable, and adaptable
overall strategies for fuel supply, monthly medium and long-term transactions, and unit maintenance. These
strategies will be tailored to accommodate changes in capacity price policies, with a primary focus on
maximizing the company's interests. Fifth, enhance research in technological innovation, drive the
transformation and practical application of findings, and cultivate a synergistic environment for value creation.
Sixth, strength comprehensive budget management, rigorously monitor all expenses and expenditures, and
proactively explore diverse financing avenues to fulfill funding requirements for transformation and
development. Concurrently, efforts will be made to minimize financing costs wherever feasible; closely track
and deeply explore government policy dividends or preferential policies to increase revenue and reduce
expenditure.

(4) Establish a solid foundation and elevate standardized management to a new level. First, strengthen corporate
governance, keep up with the latest requirements of national laws, regulations and securities supervision
regulations, and continuously optimize and improve the institutional system of corporate governance;
According to the actual development needs of the Company and market conditions, the functions of the capital
operation platform of listed companies will be fully utilized to assist the implementation of the Company's
transformation and development tasks. Second, enhance standardized management practices, deepen
compliance protocols, and further refine the Company's institutional system and operational mechanisms of
compliance management. Execute specialized compliance initiatives in key areas, and extend the reach of the
compliance management system to subsidiary enterprises. Third, strengthen the management of affiliated
enterprises. All functional departments of the Company must efficiently fulfill their service roles and
collaborate across all business chains to elevate the institutionalization, standardization, and refinement of
management practices within affiliated enterprises. Fourth, Intensify financial management by anchoring on

                                                         43
                                                          Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

comprehensive budgeting as the lever. Establish a budget management organizational framework fostering
cross-departmental collaboration and multifaceted coordination. Reinforce budget performance management,
leveraging comprehensive budgeting as a vital instrument to propel the reform of market-oriented mechanisms
and bolster the implementation of the Company's strategic planning. Fifth, enhance audit risk control
management by reinforcing internal audit oversight and compliance with risk control measures. Vigilantly
monitor and implement the audit rectifications and spearhead efforts to elevate the Company's standardized
management practices and enhance levels of risk prevention and control.

(5) Deepen reforms and continuously enhance corporate vitality and competitiveness. First, explore and
implement a more flexible and efficient market-based salary management mechanism reform and establish a
performance-linked salary revenue distribution system. Second, continuously advance a performance-driven
culture by instituting a mid- to long-term incentive mechanism for the management team, incorporating both
annual objectives and the goals associated with employees' tenures. Develop a scientifically sound, reasonable,
and challenging system of differentiated performance indicator assessment, adhering to the principle of 'one
enterprise, one policy'; Further strengthen the evaluation of operating performance indicators for affiliated
enterprises and the performance assessment of the Company's management cadre. Implement rigorous
constraints of evaluation. Third, continue to facilitate the integration and optimization of human resources
within the system, while actively attracting exceptional external talents to cultivate a skilled team aligned with
the company's transformation and development objectives. Fourth, develop the targeted and professional
training plans tailored to the Company's transition towards an integrated energy service industry. Enhance
training programs to nurture skilled talents of different skills aligned with the Company's strategic positioning;
deploy internal competition mechanisms and job rotation exchange programs to actively foster and identify
exceptional young cadres, while proactively building a talent reservoir. This initiative aims to cultivate a high-
caliber talent pool tailored to meet the Company's evolving transformation and development requirements.

(6) Unite hearts and minds, emphasizing the importance of Party leadership and Party building. First, enhance
political guidance, uphold comprehensive and rigorous governance within the Party, ensuring the effective
manifestation of the Party's core role through the "six unifications". This will enable the leading and supporting
role of Party building efforts in enterprise reform, transformation, and development. Second, continue to
strengthen consolidating grassroots Party building, give full play to the role of grassroots Party Branches as
frontline bastions, and take the Company's reform, transformation and development as the starting point and
goal of Party building efforts. Third, adhere to the Party's oversight of talent and cadre management,
endeavoring to nurture a team of proficient management professionals versed in politics, adept in administration,
and skilled in operations. This effort aims to provide robust organizational and talent support for the Company's
transformation and development. Fourth, commit to fostering a culture of integrity within the Party to ensure
high-quality development. Unwaveringly reinforce the cultivation of a clean and honest party ethos,
conscientiously implementing anti-corruption measures. Consolidate and deepen the outcomes of inspections
and rectifications, utilizing the promotion of a clean and honest party culture to safeguard the Company's
transformation and development.

The business plan and related situation analysis described in this annual report do not constitute the
Company's commitment to investors. The Company reminds investors to maintain due risk awareness,
understand the differences between the business plan and actual operating conditions, and make prudent
decisions of investment.

3. Potential major risks and countermeasures

                                                        44
                                                          Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

(1) Main business: since 2023, the Company's power plants have encountered significant challenges due to
various factors, including the continuous increase in fuel prices and outdated unit energy efficiency. With the
official commencement of Guangdong Province's power marketization, the 9E unit faces profitability
difficulties in competing with more efficient and cost-effective units. The operational outlook for the
Company's core business is expected to become increasingly challenging. The Company will persist in
enhancing the operation and management of assets in stocks, proactively adapting to the demands and dynamics
of the power market, and striving to optimize the profitability of its core operations and overall operational
efficiency. Simultaneously, the Company will prioritize integrated energy services, actively investigating
diverse business models and opportunities to transition from a traditional power generation entity to a
comprehensive energy service provider. These efforts aim to foster favorable conditions for the Company's
sustained operations and robust growth.

(2) Safety management: under the market-oriented power production model, power plants will face more
flexible scheduling methods and stricter assessment policies, which entail heightened demands on the operation
and maintenance of existing aging power generation equipment. The Company will continuously improve the
maintenance and management level of equipment by formulating scientific and reasonable maintenance and
technical transformation plans, investing corresponding funds and technical forces, implementing primary
responsibility for work safety, and ensuring the safe and stable operation of production facilities;
Simultaneously, the Company will enhance training and emergency preparedness, ensuring the implementation
of work safety responsibilities across five key areas: responsibility of work safety, management, investment,
training, and emergency response. Doing so aims to prevent any human-induced work safety accidents within
the Company's system while maintaining the supporting role of the main peak-shaving power supply point.

(3) Fuel procurement: in 2024, the Company's natural gas purchase price will mainly depend on changes in the
international fuel market and the sales prices set by the Company's existing suppliers. Amidst the backdrop of a
sluggish global economic recovery and the alleviation of tensions in the Russia-Ukraine conflict, it is
anticipated that international energy prices will persist in their decline throughout 2024. However, geopolitical
risks remain a factor of consideration. As a result, the Company's natural gas procurement costs in 2024 may
continue to decrease compared to 2023. However, despite this decline, the overall price level remains elevated,
with the potential for increased fluctuation. Furthermore, the Company may transition from a dual gas source
structure to a single gas source structure. This transition may have a negative impact on gas supply stability,
flexibility in coordinating gas volumes, and the economic aspect of gas prices. At the same time, the operation
of electricity spot trading rules and the introduction of capacity price policies have put forward higher
requirements for the stability and flexibility of natural gas supply. The Company will continue to optimize
upstream cooperation relationships, coordinate gas supply work under a single gas source, and do its best to
minimize natural gas procurement costs while ensuring gas demand for power production.

(4) Land of Nanshan Power Plant: in June 2023, the company learned about the Notice of Shenzhen Municipal
Bureau of Planning and Natural Resources on Issuing the 2023 Shenzhen City Urban Renewal and Land
Preparation Plan on the official website of the Shenzhen Municipal Planning and Natural Resources Bureau,
according to the relevant content in its appendix, 2023 Shenzhen City Urban Renewal and Land Preparation
Plan still includes the Land of Nanshan Power Plant and related content. The Company will maintain close
communication with relevant departments of Shenzhen, actively follow up on the implementation progress of
relevant government plans, and work with legal advisors to carefully study Land of Nanshan Power Plant, study
and formulate response strategies and work plans, and make every effort to protect the listed company and all
the legitimate rights and interests of shareholders.
                                                        45
                                                        Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


The Company advises investors to take note of the aforementioned major risks as well as other potential
risks that may affect the Company, and to make prudent and informed investment decisions accordingly.

XII. Reception of visitors intended for research, communication, interviews and other activities during
the reporting period

Applicable     □ Not applicable

                                                                                  Main content           Basic
  Reception      Reception           Means of                                     discussed and      information
                                                  Visitor type     Visitor
    date          location           reception                                     information       index of the
                                                                                     provided           survey
                                                                                                    The
                                                                                  Participate in
                                                                                                    Company
                                                                                  General
                                                                                                    welcomes
 January -      Headquarters                                                      Meetings,
                                   Field                                                            visitors in
 December       office area of                   Individuals                  4   receive visits
                                   research                                                         accordance
 2023           the Company                                                       from
                                                                                                    with laws
                                                                                  individual
                                                                                                    and
                                                                                  investors, etc.
                                                                                                    regulations
                                                                                  Inquire about
                                                                                  the
                                                                                  Company's
                                                                                  future
                                                                                  development       The
                Interactive
 January -                                                                        direction, the    Company
                platform and       Written
 December                                        Individuals                 57   updates of        offers prompt
                email of the       Inquiry
 2023                                                                             the               response in
                Company
                                                                                  Company's         writing.
                                                                                  investment
                                                                                  matters and
                                                                                  land-related
                                                                                  matters, etc.
                                                                                  Inquire about
                                                                                  the
                                                                                  Company's
                                                                                  performance,
                                                                                  market            The
 January -      Telephone          Telephone                                      performance,      Company
 December       communicati        communicati   Individuals                 69   land-related      responded in
 2023           on                 on                                             matters, and      accordance
                                                                                  the update of     with the law
                                                                                  the
                                                                                  Company's
                                                                                  investment
                                                                                  matters, etc.
                                                      46
                                                       Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report




XIII. Implementation of the action plan entitled Double Improvement of Quality and Return

Whether the Company has disclosed the action plan entitled Double Improvement of Quality and Return

□Yes  No




                                                     47
                                                          Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                Section IV Corporate governance

I. Basic situation of corporate governance

During the reporting period, the Company continued to enhance its corporate governance structure and improve
the modern corporate governance structure in accordance with the relevant laws, regulations, normative
documents such as the Company Law, Securities Law, Code of Governance of Listed Companies, Stock Listing
Rules, and the Company's Articles of Association. The Company improved the level of standardized
governance and refined management, and effectively protected the legitimate rights and interests of listed
companies, investors and employees.

1. General Meeting: the Company convened General Meetings in strict accordance with legal procedures to
ensure that shareholders exercise their rights in accordance with the law. During the reporting period, the
Company held one regular General Meeting and four Extraordinary General Meetings to carefully study and
deliberate on major matters requiring decision-making by the shareholders' meeting. The convening and calling
procedures of the Company's General Meetings, the attendees and the subject qualifications of the convener,
voting procedures and voting results were all in compliance with the Company Law, Securities Law, Rules for
General Meetings of Listed Companies and other laws, regulations, normative documents and relevant
provisions of the Company's Articles of Association. The Company had neither major shareholder nor related
parties involved in the appropriation or transfer of the Company's funds, assets and other resources in any form.

2. Board of Directors: the Board of Directors of the Company adheres to standardized operation and
management, implementing various measures to enhance its own development, and elevate the standardization
and scientific decision-making capabilities of the Board. During the reporting period, Board of Directors of the
Company held 2 regular meetings and 10 extraordinary meetings to meticulously deliberate and review major
matters within its scope of authority. The four special committees under the Board of Directors, namely the
Strategy and Investment Management Committee, the Audit Committee, the Nomination Committee, and the
Remuneration and Appraisal Committee, meticulously deliberate and review relevant matters according to their
respective responsibilities. They provided opinions and suggestions to fully leverage the role of each committee
in addressing major issues. These committees actively contributed to investment decision-making, key
personnel adjustments, standardized management, internal auditing, and risk control, ensuring the scientific
nature of the company's decision-making processes and management standardization.

3. Board of Supervisors: the Company's Board of Supervisors conscientiously performs its supervisory duties in
accordance with relevant laws and regulations, demonstrating a responsible attitude toward the Company and
shareholders. During the reporting period, the Company's Board of Supervisors held 2 regular meetings and 7
extraordinary meetings to supervise and inspect important matters such as the Company's financial situation,
major decision-making matters, internal control, and standardized management, and expressed opinions. At the
same time, the Board of Supervisors also performed its supervisory duties by attending General Meetings and
the meetings of Board of Directors and organizing on-site inspections of the Company's subsidiaries to gain an
in-depth understanding of the Company's operations and management.

4. Managers: during the reporting period, the Company's managers strictly followed relevant laws and
regulations and the requirements of the Company's Articles of Association, conscientiously implemented the
decisions of the General Meeting and Board of Directors, actively organized and carried out the Company's
production, operation and management activities. They consistently refined the office meeting system and

                                                        48
                                                         Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

internal control system, consistently optimized work processes and decision-making procedures, followed the
working principles of reasonable division of labor, enhanced cooperation and the purpose of collective decision-
making on major matters, continuously improved the Company's management level, striving to achieve annual
operating goals.

5. Information disclosure and investor relations management: board of Directors of the Company strictly
complies with the requirements of the Measures for the Administration of Information Disclosure of Listed
Companies, the Stock Listing Rules and other regulations and normative documents, and conscientiously
performs its information disclosure obligations. During the reporting period, the Company diligently prepared
and disclosed regular and ad-hoc reports in compliance with relevant laws and regulations. A total of 122
announcements were issued over the year, aiming to provide investors with comprehensive insights into the
Company's production, operations, management, and significant developments. The Company rigorously
adheres to stipulations outlined in normative documents such as the Guidelines for the Management of Investor
Relations of Listed Companies and the Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed
Companies No. 1 - Standardized Operations of Main Board Listed Companies to effectively manage investor
relations. The Company has facilitated investor engagement through on-site visits, email correspondence,
investor hotlines, the Shenzhen Stock Exchange's interactive platform, and other communication channels, so as
to enhance investors' understanding of the Company.

6. Insider information management: the Company strictly follows the requirements of regulations and normative
documents such as the Information Disclosure Management Measures for Listed Companies and the Guidelines
for the Supervision of Listed Companies No. 5 - Registration and Management System for Insiders of Listed
Companies' Insider Information, standardizes the Company's insider information management, and
conscientiously submits memoranda on updates of major event and insider information files in accordance with
relevant regulations. During the reporting period, the Company neither leaked any inside information, nor
violated information disclosure regulations by providing undisclosed information to major shareholders.

7. Internal control and standardized management: during the reporting period, the Company meticulously
carried out internal control self-evaluation, internal audit and other aspects, and took active and effective
measures to correct existing problems and deficiencies. Meanwhile, the Company strengthened business
training and compliance education for directors, supervisors, senior officers and middle-level management
cadres at all levels, increased assessments, rewards and punishments, further improved standardized
management levels, and strive to prevent operational management risks.

Whether the Company's actual situation of corporate governance is significantly different from the laws,
administrative regulations and the provisions on listed company governance issued by CSRC

□Yes  No

There is no significant difference between the actual situation of the Company's corporate governance and the
laws, administrative regulations and regulations on the governance of listed companies issued by the CSRC.

II. The Company's independent possession of assets, personnel, finance, organization, and business, etc.
from its controlling shareholders and actual controllers.

The Company has no controlling shareholder. The Company is completely independent of its major
shareholders in terms of personnel, assets, finance, business, and institutions, and has the ability to make
independent decisions and operate effectively.

                                                       49
                                                          Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

1. Personnel independence: the Company has an independent human resources management system, salary and
welfare system; All senior officers of the Company are full-time managers of the Company and do not hold
other administrative positions other than directors and supervisors in shareholder entities; The Company recruits
and fires employees on its own within the scope approved by Board of Directors and based on operational and
management needs. The Company has established a comprehensive human resources management system and
has independent management rights.

2. Asset independence: the Company has independent production facilities and auxiliary systems, land use right
and housing property rights, office facilities and equipment. Within the scope of authorization by the General
Meeting and Board of Directors, it has the power to independently purchase and dispose of assets.

3. Financial independence: the Company has an independent Financial Management Department and
accounting system, has equipped with independent financial management and accounting personnel, has
established a more complete financial management system, and has independent bank accounts and tax
accounts. The Company has independent financial decision-making power within the scope authorized by the
General Meeting and the Board of Directors, and there is no situation in which major shareholders interfere with
financial management or misappropriation of funds, etc.

4. Business independence: the Company independently carries out production and operating activities, and has
established independent and complete production, procurement and sales channels and management system.
Within the scope authorized by the General Meeting and the Board of Directors, the Company operates
independently, manages itself and is responsible for its own profits and losses.

5. Institutional independence: based on the needs of production, operation, and management, the Company has
established a more perfect organizational structure and management structure in accordance with modern
enterprise management standards. There is no situation in which shareholders interfere with the establishment
and operation of the Company's institutions, and there is no situation in which they share the organizational
structure with shareholders.

III. Horizontal competition

□Applicable  Not applicable

IV. Relevant information on the Annual General Meeting and Extraordinary General Meeting held
during the reporting period

1. Information on the General Meeting during the reporting period

                                        Investor
                                                         Convening        Disclosure
     Session            Type          participation                                             Resolution
                                                           date              date
                                          ratio
                                                                                         The Proposal on By-
 The First                                                                               election of non-
 Extraordinary      Extraordinar                                                         employee supervisors
                                                       March 23,        March 23,
 General            y General                38.36%                                      of the Ninth Board of
                                                       2023             2023
 Meeting for        Meeting                                                              Supervisors of the
 2023                                                                                    Company was reviewed
                                                                                         and approved
 2022 Annual        Annual                   38.40%    May 5, 2023      May 5, 2023      13 proposals including
                                                        50
                                                         Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


 General           General                                                               2022 Work Report of
 Meeting           Meeting                                                               the Board of Directors
                                                                                         and 2022 Work Report
                                                                                         of Board of Supervisors
                                                                                         were reviewed and
                                                                                         approved
 The Second                                                                              The Proposal on Hiring
 Extraordinary     Extraordinar                                                          an Auditor for 2023 and
                                                      September          September
 General           y General                38.32%                                       Determining Its
                                                      15, 2023           15, 2023
 Meeting for       Meeting                                                               Remuneration was
 2023                                                                                    reviewed and approved
                                                                                         The Proposal on
 The Third                                                                               Investment in Shenzhen
 Extraordinary     Extraordinar                                                          New Energy Storage
                                                      November 3,        November 3,
 General           y General                12.23%                                       Industry Equity Funds
                                                      2023               2023
 Meeting for       Meeting                                                               and Related
 2023                                                                                    Transactions was
                                                                                         reviewed and approved
                                                                                         The Proposal on Land
 The Fourth
                                                                                         Acquisition and Storage
 Extraordinary     Extraordinar
                                                      November 24,       November        of Shenzhen Nanshan
 General           y General                38.36%
                                                      2023               24, 2023        Power (Zhongshan)
 Meeting for       Meeting
                                                                                         Power Co., Ltd. was
 2023
                                                                                         reviewed and approved

2. Preferred shareholders whose voting rights have been restored request the convening of an
Extraordinary General Meeting of Shareholders

□Applicable Not applicable

V. Directors, supervisors and senior officers

I. Basic information

                                                                Num       Nu
                                                                                Numb
                                                                  ber    mbe                      Numb
                                                                                 er of
                                                                  of     r of                      er of
                                                                                shares
                                                                share    shar            Other    shares   Reaso
                                                                                reduc
                                                                   s       es            increa    held    ns for
                                   Incu                                          ed in
                                           Commen     Expirat    held    incr            ses/de   at the   increa
           Gen           Posi     mben                                            the
  Name            Age                       cement    ion of    at the   ease            crease     end     se or
           der           tion       cy                                           curre
                                            of term    term     begin    d in               s     of the    decre
                                  status                                           nt
                                                                 ning     the            (share    perio   ase in
                                                                                 perio
                                                                of the   curr              s)        d     shares
                                                                                   d
                                                                perio     ent                     (share
                                                                                (share
                                                                   d     peri                        s)
                                                                                   s)
                                                                (shar     od
                                                       51
                                                  Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                                         es)       (sha
                                                                   res)
Kong                Chai           Septemb     April
         Mal               Incu
Guolia         40   rma            er 13,      26,             0     0    0       0       0
         e                 mbent
ng                  n              2022        2024
                    Vice
                                   Septemb     April
Hu       Mal        Chai   Incu
               53                  er 13,      26,             0     0    0       0       0
Ming     e          rma    mbent
                                   2021        2024
                    n
                                               April
Huang    Mal        Dire   Incu    June 3,
               52                              26,             0     0    0       0       0
Qing     e          ctor   mbent   2019
                                               2024
                                               April
                    Dire   Incu    August
                                               26,             0     0    0       0       0
                    ctor   mbent   28, 2017
                                               2024
Chen     Mal
               58   Gen
Yuhui    e                                     April
                    eral   Incu    August
                                               26,             0     0    0       0       0
                    Man    mbent   11, 2017
                                               2024
                    ager
                                               April
                    Dire   Incu    April 25,
                                               26,             0     0    0       0       0
                    ctor   mbent   2016
                                               2024
                    Exe
                    cuti
Wu
         Mal        ve
Guowe          58
         e          Dep                        April
n                          Incu    April 1,
                    uty                        26,             0     0    0       0       0
                           mbent   2016
                    Gen                        2024
                    eral
                    Man
                    ager
Sun                                            April
         Mal        Dire   Incu    April 26,
Huiron         40                              26,             0     0    0       0       0
         e          ctor   mbent   2021
g                                              2024
                    Inde
                    pend                       April
Huang    Fem               Incu    August
               52   ent                        26,             0     0    0       0       0
Xiqin    ale               mbent   2, 2022
                    dire                       2024
                    ctor
                    Inde
                    pend           Novemb      April
Chen     Mal               Incu
               53   ent            er 17,      26,             0     0    0       0       0
Zetong   e                 mbent
                    dire           2017        2024
                    ctor
                                                52
                                                   Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                    Inde
                    pend            Novemb      April
Du       Mal                Incu
               68   ent             er 11,      26,          0     0       0       0       0
Wei      e                  mbent
                    dire            2019        2024
                    ctor
                    Chai
                    rma
                    n of
                    the                         April
Zhai     Mal                Incu    March
               52   Boar                        26,          0     0       0       0       0
Baojun   e                  mbent   23, 2023
                    d of                        2024
                    Sup
                    ervis
                    ors
                    Sup                         April
Li       Mal                Incu    April 26,
               45   ervis                       26,          0     0       0       0       0
Caijun   e                  mbent   2021
                    or                          2024
                    Sup                         April
Liao     Mal                Incu    June 3,
               35   ervis                       26,          0     0       0       0       0
Junkai   e                  mbent   2019
                    or                          2024
                    Emp
                    loye
                    e
                    repr
Qian                                            April
         Mal        esen    Incu    April 26,
Wenhu          55                               26,          0     0       0       0       0
         e          tativ   mbent   2021
i                                               2024
                    e
                    supe
                    rvis
                    or
                    Emp
                    loye
                    e
                    repr
                                                April
Lu       Fem        esen    Incu    April 26,
               41                               26,          0     0       0       0       0
Yindi    ale        tativ   mbent   2021
                                                2024
                    e
                    supe
                    rvis
                    or
                    Dep                         April
                                    Septemb
Li       Mal        uty     Incu                26,
               52                   er 18,                   0     0       0       0       0
Chao     e          gene    mbent               2024
                                    2023
                    ral
                                                 53
                                                              Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                            man
                            ager
                            Dep                          April
                            uty                          26,
                                             Septemb
 Tao       Mal              gene    Incu                 2024
                       56                    er 18,                     0     0       0       0       0
 Lin       e                ral     mbent
                                             2023
                            man
                            ager
                            Chie
                            f
 Zhang                                                   April
           Mal              Fina    Incu     June 13,
 Xiaoyi                36                                26,            0     0       0       0       0
           e                ncial   mbent    2022
 n                                                       2024
                            Offi
                            cer
                            Secr
                            etar
                            y of
                                                         April
           Mal              the     Incu     April 26,
 Zou Yi                50                                26,            0     0       0       0       0
           e                Boar    mbent    2021
                                                         2024
                            d of
                            Dire
                            ctors
                            Chai
                            rma
                            n of
                            the              Novemb      Februa
 Ye        Mal                      Leave
                       60   Boar             er 17,      ry 27,         0     0       0       0       0
 Qiliang   e                        office
                            d of             2017        2023
                            Sup
                            ervis
                            ors
                            Dep
                            uty
                                             Decemb      March
 Zhang     Fem              gene    Leave                           17,32                         17,32
                       55                    er 30,      20,                  0       0       0
 Jie       ale              ral     office                              5                             5
                                             2006        2023
                            man
                            ager
                                                                    17,32                         17,32
 Total     --     --        --      --       --          --                   0       0       0
                                                                        5                             5

Whether there was any departure of directors and supervisors and dismissal of senior officers during their term
of office during the reporting period

Yes □ No


                                                          54
                                                          Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

On February 27, 2023, the Board of Supervisors of the Company received a written resignation report submitted
by Mr. Ye Qiliang, the Chairman of the Board of Supervisors. Mr. Ye Qiliang resigned from his position as the
supervisor of the Ninth Session of the Board of Supervisors and Chairman of the Board of Supervisors of the
Company due to reaching the statutory retirement age, and his resignation took effect from the date on which
his resignation report was delivered to the Company's Board of Supervisors.

On March 20, 2023, the Board of Directors of the Company received a written resignation report submitted by
Ms. Zhang Jie, the Deputy General Manager. Ms. Zhang Jie resigned from her position as Deputy General
Manager of the Company due to reaching the statutory retirement age, and her resignation took effect from the
date on which his resignation report was delivered to the Board of Directors of the Company.

Changes in directors, supervisors and senior officers of the Company

Applicable □ Not applicable

        Name              Position held               Type                    Date                Reason
                       Deputy general
 Li Chao                                      Appointed                September 18, 2023
                       manager
                       Deputy general
 Tao Lin                                      Appointed                September 18, 2023
                       manager
                       Chairman of the
 Ye Qiliang            Board of               Leave office             February 27, 2023    Retired
                       Supervisors
                       Deputy general
 Zhang Jie                                    Leave office             March 20, 2023       Retired
                       manager

2. Position

The professional background and main work experience of the Company's incumbent directors, supervisors and
senior officers, as well as their main responsibilities currently

(1) Members of the Board of Directors of the Company:

Mr. Kong Guoliang: was born in 1983, is a member of the CPC, has obtained a master's degree in finance from
Central University of Finance and Economics, and is a Certified Public Accountant and Economist. He has
successively served as Warrant Services Manager and Securities Representative of Shenzhen Zhenye (Group)
Co., Ltd., Senior Manager and Deputy Minister of the Investment Department of Shenzhen Yuanzhi Investment
Co., Ltd., Minister of Capital Operations Department, Minister of Investment and Development II, Minister
(Director) of the Department of Strategic Studies (Office of the Board of Directors) and Secretary of the Board
of Directors of Shenzhen Capital Holdings Co., Ltd., a director of Shenzhen Zhenye (Group) Co., Ltd., a
director of China International Marine Containers (Group) Co., Ltd., General Manager of Shenzhen Pingwen
Development Investment Co., Ltd., and Chairman of Shenzhen Yuanzhi Culture Holding Co., Ltd. Currently, he
is the Chairman of Shenzhen Energy Corporation, the director of Shenzhen Energy (Hong Kong) International
Limited, and the director of HONG KONG NAM HOI (INTERNATIONAL) LTD. From September 2022 to
the present, he has served as the Chairman of the Company, and from November 2022 to the present, he has
served as the Secretary of the Party Committee of the Company.

Mr. Hu Ming: was born in 1970, is a member of China National Democratic Construction Association, has
obtained a master's degree, and is a Senior Engineer. From March 2003 to December 2019, he served in
                                                       55
                                                        Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

government-related agencies such as Nanshan District Housing and Construction Bureau, Audit Bureau, etc.;
from January 2020 to August 2021, he served as the Managing Director of Shenzhen Dashahe Construction
Investment Co., Ltd. and the Managing Director of Shenzhen Nanshan Anju Construction and Development Co.,
Ltd.; from August 2021 to present, he has served as the Managing Director of Shenzhen Guangju Energy Co.,
Ltd., and from September 2021 to present, he has served as the Vice Chairman of the Company.

Mr. Huang Qing: was born in 1971, is a member of the CPC, is an Economist with a master's degree in
economics, and graduated from Wuhan University majoring in National Economic Planning and Management.
He has successively served as a Clerk, Deputy Chief Clerk and Chief Clerk of the General Office of Shenzhen
Municipal Government, Deputy Director of the Comprehensive Department of the General Office of Shenzhen
Municipal Government, Director of the Comprehensive Department of the General Office of Shenzhen
Municipal Government, Deputy Secretary of the General Office of Shanxi Provincial Government, Deputy
Director of the Shanxi Provincial Government Office in Guangzhou, member of the Party Group, etc. Currently,
he is the Deputy General Manager of Shenzhen Capital Holdings Co., Ltd., and also serves as a Director of
Shenzhen Energy Corporation, a Director of Shenzhen Environment and Water Investment Group Co., Ltd., a
Director of Shenzhen High-tech Investment Group Co., Ltd., and a Director of Xiong'an Green Research Think
Tank Co., Ltd., a Director of Shenzhen Institute of Building Research Co., Ltd., and Chairman of Shenzhen
Yixin Investment Co., Ltd.; from June 2019 to present, he has served as a director of the Company.

Mr. Chen Yuhui: was born in 1965, is a member of the CPC, is a Senior Engineer, graduated from Shanghai
Jiaotong University, and has obtained a bachelor's degree in ship power (undergraduate degree) and a master's
degree in vibration, impact and noise (graduate degree). In 1989, he worked in the Maintenance Department of
Shenyang Liming Gas Turbine Co., Ltd.; From December 1989 to June 2006, he worked at the Yueliangwan
Power Plant of Shenzhen Energy Group, where he served as the Duty Officer of the Operation Department, a
Specialist in the Chief Engineer's Office, Deputy Director of the Maintenance Department, Deputy Plant
Director, Plant Director, etc; from June 2006 to July 2014, he worked at the Eastern Power Plant of Shenzhen
Energy Group, where he served as Deputy General Manager and Operations Director; from July 2014 to August
2017, he served as Chairman, General Manager and Party Branch Secretary of Zuhai Shenzhen Energy
Hongwan Power Co., Ltd.; from August 2017 to present, he has served as the director and General Manager of
the Company, and from May 2019 to present, he has served as Deputy Secretary of the Party Committee of the
Company.

Mr. Wu Guowen: was born in 1965, and has obtained a bachelor's degree. Since 1994, he has worked in
Shenzhen Guangju Energy Co., Ltd. From 2008 to November 2010, he worked in Shenzhen Yisheng Liquid
Warehousing Co., Ltd. as Deputy General Manager; from December 2010 to March 2016, he worked in
Shenzhen Guangju Real Estate Co., Ltd., and served successively as Executive Deputy General Manager, legal
representative, executive director, and General Manager; from August 2013 to March 2018, he served as
employee supervisor of Shenzhen Guangju Energy Co., Ltd.; from March 2018 to September 2021, he also
served as the Chairman of Shenzhen Xiefu Energy Co., Ltd.; since January 2022, he has also served as a
director of Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd.; from April 2016 to present, he
has served as a director and Executive Deputy General Manager of the Company.

Mr. Sun Huirong: was born in 1983, is a member of the CPC, has obtained a master's degree, and is an Engineer.
He has successively served as Senior Staff and Project Manager of Shenzhen Geotechnical Investigation &
Surveying Institute Co., Ltd., Chief Investment Officer of Shenzhen Dipingxian Investment Management Co.,
Ltd., and Senior Manager and Deputy Minister of Research Department and Deputy Minister of Strategic

                                                      56
                                                        Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

Research and M&A and Restructuring Department, etc. of Shenzhen Capital Holdings Co., Ltd. He is currently
the Minister of Asset Management Department of Shenzhen Capital Holdings Co., Ltd., and he also serves as a
director of China International Marine Containers (Group) Co., Ltd., a director of Shenzhen Institute of
Building Research Co., Ltd., a director of Shenzhen Zhenye (Group) Co., Ltd., and a director of Shenzhen
MTC Co., Ltd., etc. he has served as a director of the Company since April 2021.

Ms. Huang Xiqin: was born in 1971, has obtained a bachelor's degree in law and a master's degree in economics
from the Party School of the Central Committee of the CPC, and a master's degree in business administration
for senior officers from Guanghua School of Management, Peking University. She started working in
September 1992. From September 1992 to May 1998, she served as Appraiser, Manager, etc. of Shenzhen
International Real Estate Consulting Co., Ltd.; from May 1998 to date, she has served as executive director of
Guozhonglian Asset Appraisal Land and Real Estate Valuation Co., Ltd.; from December 2000 to date, he has
served as Chairman of Guozhonglian Construction Engineering Management Consulting Co., Ltd.; from
November 2001 to present, she serves as Chairman of Guangdong Guozhonglianxing Asset Appraisal Land and
Real Estate Valuation, Planning and Consulting Co., Ltd.; from February 2015 to date, she has served as a
director of Beijing Guozhonglian Auction Co., Ltd.; from January 2022 to present, she has also served as an
External director of Guangdong Construction Engineering Group Co., Ltd. She has served as an independent
director of the Company since August 2022.

Mr. Chen Zetong: was born in 1970, has obtained a bachelor's degree in law from Southwest University of
Political Science and Law, a master's degree in law from the University of Hong Kong, and a doctorate in law
from Jilin University. From 1994 to 2003, he served as a Clerk, Assistant Judge and Judge in the Real Estate
Tribunal of Shenzhen Intermediate People's Court; from 2003 to 2006, he served as the Presiding Judge of the
Economic Tribunal; from July to August 2002, he interned in the High Court of Hong Kong as a Judicial
Assistant; from 2006 to 2010, he served as the Deputy Chief Judge of the Seventh Civil Tribunal (Corporate
Liquidation and Bankruptcy Tribunal). From 2010 to 2012, he served as a Consultant and Partner of King &
Wood Mallesons in Beijing. From 2012 to present, he has served as a Senior Partner of Beijing Junzejun Law
Offices. He is currently an Arbitrator of China International Economic and Trade Arbitration Commission, an
Arbitrator of Shenzhen Court of International Arbitration (also known as South China International Economic
and Trade Arbitration Commission and Shenzhen Arbitration Commission) and an Arbitrator of Huizhou
Arbitration Commission. He is also an independent director of CALB Group Co., Ltd., and an independent
director of unlisted companies, Fude Insurance Holdings Co., Ltd., Fude Sino-Life Insurance Co., Ltd. and Sino
Life Asset Management Co., Ltd. He has served as an independent director of the Company from November
2017 to date.

Mr. Du Wei: was born in 1955, is a member of the CPC, is a Senior Engineer, has obtained doctorate, and
graduated from Institute of Plasma Physics Chinese Academy of Sciences, majoring in Nuclear Fusion and
Plasma Physics. He has served as a Cadre of the National Energy Commission, Assistant Engineer and Chief
Clerk of Yangtze River Basin Planning Office, Engineer and Deputy Department Manager of China Nanshan
Development Co., Ltd., Deputy General Manager and General Manager of Shenzhen Changjiang Computer
Industry Co., Ltd., Deputy Minister (Deputy Division Director) and Minister (Division Director) of the
Evaluation and Recommendation Center for Senior Managers of the Organization Department of Shenzhen
Municipal Party Committee, Deputy General Manager of Shenzhen Expressway Development Co., Ltd.,
Chairman of Shenzhen International Western Logistics Co., Ltd., General Manager of Shenzhen International
Qianhai Industrial (Shenzhen) Co., Ltd., Senior Consultant of Shenzhen International Business Management
(Shenzhen) Co., Ltd., and executive director and General Manager of Shenzhen Tianyu Freight Forwarding Co.,
                                                      57
                                                        Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

Ltd. Currently, he is the executive director and General Manager of Shenzhen Borun Investment Co., Ltd. He
has served as an independent director of the Company from November 2019 to present.

(2) Members of the Board of Supervisors of the Company:

Mr. Zhai Baojun: was born in August 1971, is a member of the CPC, and has obtained a bachelor's degree.
From May 1993 to August 2001, he served as the Manager of Sales Department of Zhaobao Real Estate
Company in Baoan District, Shenzhen; from August 2001 to November 2013, he worked at Shenzhen Guangju
Energy Co., Ltd., where he served successively as Secretary of the Youth League Committee, Armed Officer,
Office Director, Director of the Party Office, and Vice Chairman of the Trade Union of the Company; from
December 2013 to April 2015, he served as Deputy General Manager of Shenzhen Guangju Yida Hazardous
Chemicals Storage Co., Ltd.; from May 2015 to April 2020, he served as Deputy General Manager of Shenzhen
Xiefu Energy Co., Ltd.; from May 2020 to March 2023, he served as Acting General Manager of Xiefu
Company; from March 2023 to present, he has served as Chairman of Board of Supervisors of the Company.

Mr. Li Caijun: was born in 1978, is a member of the CPC, and has obtained a master's degree. He once served
as an Accounting Teacher in Chongqing Beibei Vocational High School, Manager of Finance Department of
Chongqing Yanlong Property Development Co., Ltd., Manager of Investment Banking Department of Shenzhen
Energy Finance Co., Ltd., Head of Financial Management Department and Deputy Minister of Financial
Management Department of Shenzhen SEZ Construction and Development Group Co., Ltd., Deputy Minister of
Strategic Research and M&A and Restructuring Department of Shenzhen Capital Holdings Co., Ltd., Chief
Financial Officer of Shenzhen Environment and Water Investment Group Co., Ltd., and Minister of Planning
and Finance Department of Shenzhen Capital Holdings Co., Ltd., etc. He is currently serves as the General
Manager of Shenzhen Yuanzhi Culture Holding Co., Ltd. He has served as the supervisor of the Company from
April 2021 to present.

Mr. Liao Junkai: was born in 1988, is a member of the CPC, has obtained a master's degree in law, and
graduated from South China University of Technology, majoring in Master of Laws. He served successively as
Assistant, Supervisor, Manager, etc. of the Risk Control Department of Shenzhen Capital Holdings Co., Ltd.;
from November 2020 to November 2021, he also served as a supervisor of Shenzhen Institute of Building
Research Co., Ltd.; from June 2021, he has served as the General Manager of Asset Management Center of
Shenzhen CLOU Electronics Co., Ltd. He has served as the supervisor of the Company from June 2019 to
present.

Mr. Qian Wenhui: was born in 1968, is an Accountant, has obtained a bachelor's degree, and graduated from
Changsha Normal University of Water Resources and Electric Engineering in 1990, majoring in Financial
Accounting. From July to October 1990, he worked at Yangluo Power Plant in Wuhan. From October 1990 to
August 2003, he worked in the Finance Department the Company; from August 2003 to October 2011, he
served as Chief Financial Officer of Zhongshan Zhongfa Electric Power Co., Ltd.; from March 2014 to
December 2016, he served as a supervisor of Zhongshan Shenzhong Real Estate Development Co., Ltd. and
Zhongshan Shenzhong Real Estate Investment and Property Co., Ltd.; from November 2010 to present, he has
served as the Director of Audit and Risk Control Department the Company; from May 2014 to present, he has
served as a supervisor of Xiefu Company. From April 2021 to present, he has served as employee representative
supervisor of the Company.

Ms. Lu Yindi: was born in 1982, is a member of the CPC, has obtained a master's degree, and graduated from
School of Management, Huazhong University of Science & Technology in 2008, majoring in Management

                                                      58
                                                        Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

Science and Engineering. In July 2008, she joined the Global Supply Chain Management Division of Foxconn
Technology Group's iDSBG Business Group, where he served successively as Deputy Section Chief, Section
Chief and Specialist of the Supply Chain Management Division. She joined the Company in August 2018, and
has successively served as Supervisor of Contracts and Bidding Management of the Safety and Technology
Department, Deputy Director of the Supply Department and Director of the Supply Department of Nanshan
Power Plant (a subsidiary of the Company), and Deputy Director of the Company's Fuel Management
Department; from June 2021 to present, she has served as the Director and Deputy Director of the Office of the
Board of Directors of the Company. From April 2021 to present, he has served as employee representative
supervisor of the Company.

  (3) senior officers of the Company:

For information about Chen Yuhui, the General Manager, and Wu Guowen, the Executive Deputy General
Manager, please refer to the aforementioned directors' resumes.

Mr. Li Chao: was born in 1971, graduated from the Department of Finance of Shanxi University of Finance and
Economics, has obtained a master's degree in Business Administration of Macau University of Science and
Technology, and is a Senior Accountant. He started working in July 1994 and has once served as Project
Manager of the Audit Department of Shenzhen Dahua Certified Public Accountants, Finance Manager of
Compaq Computer Technology (China) Co., Ltd., and Chief Financial Officer of China Electricity Finance
(Hong Kong) Limited; he joined Shenzhen Nanshan Power Co., Ltd. in February 2001, and he served
successively as Assistant Minister, Minister, Deputy Chief Economist, Manager, and Assistant to the General
Manager of the Corporate Development Department of the Company. He is currently the Chairman of Xiefu
Company. From September 2023 to present, he has served as Deputy General Manager of the Company.

Mr. Tao Lin: was born in 1967, graduated from Shanghai Jiaotong University, majoring in Power System and
Automation, has obtained a master's degree in Business Administration from the School of Economics and
Management, Tsinghua University, and is an Economist. He started working in July 1989, and has once served
as Production Officer of the Youth League Committee of Dalian Electric Power Bureau and the On-site
Secretary of the Office of Shenzhen Huaneng Economic Development Company. In January 1992, he joined
Shenzhen Nanshan Power Co., Ltd., and served successively as Office Secretary, Director, Secretary of the
Board of Directors, General Manager of Shenzhen Xiefu Oil Supply Co., Ltd., General Manager of Zhongshan
Power Co., Ltd. and Zhongshan Zhongfa Power Co., Ltd., and Deputy Chief Economist of the Company, and
Assistant to the General Manager. He currently serves as Vice Chairman of Shenzhen Nanshan Power
Zhongshan Company, Chairman of Shenzhen Nanshan Power Environmental Protection Company, and
executive director of New Power Company. From September 2023 to present, he has served as Deputy General
Manager of the Company.

Mr. Zhang Xiaoyin: was born in 1987, is a member of the CPC, with a master's degree, has obtained a
bachelor's degree in Economics from Xiamen University and a master's degree in Business Administration from
Wuhan University, and has obtained professional qualifications such as Senior Accountant, Certified Public
Accountant, CertifiedTaxAgent, Asset Appraiser, Financial Risk Manager (FRM), etc. He started working in
October 2008, and has served as an Auditor of the Financial Services Group of Shenzhen Branch of Ernst &
Young Huaming Certified Public Accountants, a Financial Accountant of the Planning and Finance Department
of Wanlian Securities Co., Ltd., a Senior Manager of the Financial Management Department of China
Resources SZITIC Trust Co., Ltd. and Head of Accounting and supervisor of China Resources Energy Services
Company Limited, and an Investment Director (Deputy Minister) of Yuanzhi Venture Capital (Investment
                                                      59
                                                              Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

Development Department II) of Shenzhen Capital Holdings Co., Ltd. From June 2022 to present, he has served
as Chief Financial Officer of the Company.

Mr. Zou Yi: was born in 1973, is a member of the CPC, is an Economist, has obtained a master's degree in
economics. From July 1994 to September 2007, he worked at the Headquarters of Shenzhen Energy Group Co.,
Ltd., and served as Business Manager of the Finance Department, Deputy Director of the Business of the
Capital Office, and Business Director of the Secretariat of the Board of Directors; from September 2007 to
December 2017, he served as the Minister of Fund Department of Shenzhen Energy Finance Co., Ltd.; from
December 2017 to July 2019, he served as Deputy General Manager of Shenzhen Energy Finance Co., Ltd.;
from August 2017 to November 2018, he also served as a director of Huizhou SEC Fengda Electric Power Co.,
Ltd.; from August 2019 to April 2021, he served as the Director of the Office of the Board of Directors of the
Company, and from July 2020 to April 2021, he also served as the Director of the Administration Department
of the Company. From April 2021 to the present, he has served as Secretary of the Board of Directors of the
Company, and from December 2023 to the present, he has also served as the Director of the Office of the Board
of Directors.

Incumbency status in the shareholder entity

Applicable       □ Not applicable

                                                                                                      Whether to
                                                Positions                                               receive
    Name of                                    held in the        Commencement     Expiration of     remuneration
                       Entity name
   incumbent                                  shareholder            of term          term         allowance in the
                                                 entity                                               shareholder
                                                                                                         entity
 Kong             Shenzhen Energy                                 November 2,
                                          Chairman                                                 No
 Guoliang         Corporation                                     2022
                  Shenzhen Energy
 Huang Qing                               Director                April 24, 2019                   No
                  Corporation
                  HONG KONG NAM
 Kong             HOI                                             September 9,
                                          Director                                                 No
 Guoliang         (INTERNATIONAL)                                 2022
                  LTD

Incumbency status in other entities

Applicable       □ Not applicable

                                                                                                     Whether to
                                               Positions
                                                                                                       receive
    Name of                                     held in           Commencement     Expiration of
                    Other entity name                                                               remuneration
   incumbent                                     other               of term          term
                                                                                                    allowance in
                                                entities
                                                                                                    other entities
                  Shenzhen Energy
 Kong
                  (Hong Kong)             Director                April 24, 2023                   No
 Guoliang
                  International Limited

                                                             60
                                                     Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                      Director           August 20, 2021
              Shenzhen Guangju
Hu Ming                               General                                          Yes
              Energy Co., Ltd.                           August 4, 2021
                                      Manager
                                      Deputy
              Shenzhen Capital                           September 1,
                                      general                                          Yes
              Holdings Co., Ltd.                         2016
                                      manager
              Shenzhen
              Environment and                            December 4,
                                      Director                                         No
              Water Investment                           2020
              Group Co., Ltd.
              Shenzhen High-tech
Huang Qing    Investment Group        Director           March 9, 2018                 No
              Co., Ltd.
              Xiong'an Green
                                                         November 9,
              Research Think Tank     Director                                         No
                                                         2017
              Co., Ltd.
              Shenzhen Institute of
              Building Research       Director           January 31, 2018              No
              Co., Ltd.
              Shenzhen Yixin
                                      Chairman           October 10, 2022              No
              Investment Co., Ltd.
              Jiangsu Liaoyuan
              Environmental
Wu Guowen                             Director           January 28, 2022              No
              Protection Technology
              Co., Ltd.
                                      Minister of
                                      Asset
              Shenzhen Capital
                                      Managemen          April 18, 2021                Yes
              Holdings Co., Ltd.
                                      t
                                      Department
              China International
                                                         November 14,
              Marine Containers       Director                                         No
Sun Huirong                                              2022
              (Group) Co., Ltd.
              Shenzhen Institute of
              Building Research       Director           April 18, 2021                No
              Co., Ltd.
              Shenzhen Zhenye                            November 24,
                                      Director                                         No
              (Group) Co., Ltd.                          2022
              Shenzhen MTC Co.,                          November 9,
                                      Director                                         No
              Ltd.                                       2022
              Guozhonglian Asset
Huang Xiqin   Appraisal Land and      Executive
                                                         May 26, 2005                  Yes
              Real Estate Valuation   Director
              Co., Ltd.
                                                    61
                                                         Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                 Guozhonglian
                 Construction
                                                             December 13,
                 Engineering              Chairman                                            Yes
                                                             2000
                 Management
                 Consulting Co., Ltd.
                 Guangdong
                 Guozhonglianxing
                 Asset Appraisal Land
                                                             November 26,
                 and Real Estate          Chairman                                            Yes
                                                             2001
                 Valuation, Planning
                 and Consulting Co.,
                 Ltd.
                 Beijing Guozhonglian                        February 28,
                                          Director                                            No
                 Auction Co., Ltd.                           2015
                 Guangdong
                 Construction             External
                                                             January 2022                     Yes
                 Engineering Group        director
                 Co., Ltd.
                 Beijing Junzejun Law     Senior             September 1,
                                                                                              Yes
                 Offices                  Partner            2012
 Chen Zetong
                 CALB Group Co.,          Independent
                                                             October 6, 2022                  Yes
                 Ltd.                     director
                                          Director,
                 Shenzhen Borun
 Du Wei                                   General            February 1, 2020                 No
                 Investment Co., Ltd.
                                          Manager
                 Shenzhen Yuanzhi
                                          General            December 17,
 Li Caijun       Culture Holding Co.,                                                         Yes
                                          Manager            2022
                 Ltd.
                                          General
                                          Manager of
                 Shenzhen CLOU
 Liao Junkai                              Asset              June 7, 2021                     Yes
                 Electronics Co., Ltd.
                                          Managemen
                                          t Center

Punishments by Securities Regulatory Authorities in the past three years on the Company's directors,
supervisors and senior officers who are currently in office and leave office during the reporting period

□Applicable  Not applicable

3. Remuneration of directors, supervisors and senior officers

Decision-making procedures, basis for determination and actual payment of remuneration of directors,
supervisors and senior officers

(1) Decision-making procedures: according to the relevant provisions of the Company's Articles of Association,
the remuneration of directors and supervisors shall be determined by the General Meeting, and the remuneration
of senior officers shall be determined by the Board of Directors.
                                                        62
                                                           Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

(2) Basis for determination: at present, the Company has not yet implemented a remuneration system for non-
independent directors and supervisors, and directors and employee supervisors who serve in the Company only
receive remuneration for the administrative positions they hold in the Company. The Board of Directors of the
Company determines the annual remuneration standards for the Company's senior officers based on factors such
as annual operating efficiency, job rank, etc. as well as taking into account the remuneration levels in the
industry, and determines the actual remuneration standards that can be paid based on the assessment and audit
of the annual operating performance indicators.

(3) Actual payment: the Company pays remuneration in strict accordance with the decision-making procedures
and the basis for determining the remuneration of directors, supervisors and senior officers, and the expenses
related to transportation, accommodation, research, inspection and attendance at meetings, etc. incurred by
directors and supervisors due to the performance of their duties shall be borne by the Company.

Remuneration of directors, supervisors and senior officers of the Company during the reporting period:

                                                                                            Unit: RMB 10,000

                                                                                                    Whether to
                                                                                  Total pre-tax
                                                                                                      receive
                                                                                  remuneration
                                                                   Incumbency                     remuneration
     Name         Gender        Age             Position                            received
                                                                      status                       from related
                                                                                    from the
                                                                                                  parties of the
                                                                                    Company
                                                                                                     Company
 Kong
                 Male        40          Chairman                 Incumbent               85.67   No
 Guoliang
 Hu Ming         Male        53          Vice Chairman            Incumbent                0.00   Yes
 Huang Qing      Male        52          Director                 Incumbent                0.00   Yes
                                         Director, General                                        No
 Chen Yuhui      Male        58                                   Incumbent               77.66
                                         Manager
                                         Director, Executive
 Wu Guowen       Male        58          Deputy General           Incumbent               72.17   No
                                         Manager
 Sun Huirong     Male        40          Director                 Incumbent                0.00   Yes
 Huang Xiqin     Female      52          Independent director     Incumbent               12.98   No
 Chen Zetong     Male        53          Independent director     Incumbent               13.33   No
 Du Wei          Male        68          Independent director     Incumbent               14.40   No
                                         Chairman of the
 Zhai Baojun     Male        52                                   Incumbent               62.07   No
                                         Board of Supervisors
 Li Caijun       Male        45          Supervisor               Incumbent                0.00   Yes
 Liao Junkai     Male        35          Supervisor               Incumbent                0.00   Yes
 Qian Wenhui     Male        55          Employee Supervisor      Incumbent               36.43   No
 Lu Yindi        Female      41          Employee Supervisor      Incumbent               28.78   No
                                         Deputy general           Incumbent                       No
 Li Chao         Male        52                                                           44.81
                                         manager
                                         Deputy general           Incumbent                       No
 Tao Lin         Male        56                                                           46.10
                                         manager
                                                       63
                                                          Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


 Zhang                                   Chief Financial                                          Yes
                 Male       36                                     Incumbent               0.00
 Xiaoyin                                 Officer
                                         Secretary of the                                         No
 Zou Yi          Male       50                                     Incumbent             69.66
                                         Board of Directors
                                         Chairman of the                                          No
 Ye Qiliang      Male       60                                     Leave office          18.14
                                         Board of Supervisors
                                         Deputy general                                           No
 Zhang Jie       Female     55                                     Leave office          17.64
                                         manager
 Total           -          -            -                         -                    599.84    -

Other information

□Applicable  Not applicable

VI. Directors' performance of duties during the reporting period

1. Information of the Board of Directors during the reporting period

           Session               Convening date        Disclosure date                  Resolution
                                                                            The Proposal on Matters Related to
                                                                            Fixed Assets Inventory, the
                                                                            Proposal on Amending the
 The 12th Extraordinary                                                     Provisions on the Management of
 Meeting of the Ninth       January 16, 2023        January 18, 2023        Fixed Assets and the Proposal on
 Board of Directors                                                         Using Temporarily Idle Self-owned
                                                                            Funds for the Deposit of Structured
                                                                            Deposits were reviewed and
                                                                            approved
                                                                            The Proposal on Convening the
 The 13th Extraordinary
                                                                            First Extraordinary General
 Meeting of the Ninth       March 6, 2023           March 7, 2023
                                                                            Meeting for 2023 was reviewed and
 Board of Directors
                                                                            approved
                                                                            14 proposals, including the 2022
                                                                            Work Report of the Board of
 The 5th Meeting of the
                            April 4, 2023           April 7, 2023           Directors and the 2022 Work
 Ninth Board of Directors
                                                                            Report of the General Manager,
                                                                            were reviewed and approved
 The 14th Extraordinary
                                                                            The 2023 First Quarter Report was
 Meeting of the Ninth       April 24, 2023          April 26, 2024
                                                                            reviewed and approved
 Board of Directors
                                                                            The Proposal on Formulating and
                                                                            Amending 14 Systems, including
 The 15th Extraordinary
                                                                            the Compliance Management
 Meeting of the Ninth       June 29, 2023           July 1, 2023
                                                                            Measures and the General
 Board of Directors
                                                                            Manager's Working Rules, was
                                                                            reviewed and approved

                                                      64
                                                    Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                                                     The full text and summary of the
                                                                     2023 Semi-annual Report, the
                                                                     Proposal on the Establishment of
                                                                     the Company's Discipline
                                                                     Inspection and Supervision Office,
The 6th Meeting of the                                               the Proposal on the Engagement of
                           August 23, 2023      August 25, 2023
Ninth Board of Directors                                             an Auditor for 2023 and the
                                                                     Determination of Its Remuneration
                                                                     and the Proposal on Convening the
                                                                     Second Extraordinary General
                                                                     Meeting for 2023 were reviewed
                                                                     and approved
                                                                     The Proposal on the Appointment
                                                                     of Mr. Li Chao as the Company's
                                                                     Deputy General Manager, the
                                                                     Proposal on the Appointment of Mr.
The 16th Extraordinary                                               Tao Lin as the Company's Deputy
Meeting of the Ninth       September 18, 2023   September 19, 2023   General Manager and the Proposal
Board of Directors                                                   on the Review of 2023 Operating
                                                                     Performance Responsibility Letter
                                                                     of the Company's Deputy General
                                                                     Manager were reviewed and
                                                                     approved
                                                                     The Proposal on Investment in
                                                                     Shenzhen New Energy Storage
The 17th Extraordinary                                               Industry Equity Fund and Related
Meeting of the Ninth       October 17, 2023     October 18, 2023     Transactions and the Proposal on
Board of Directors                                                   Convening the Third Extraordinary
                                                                     General Meeting for 2023 were
                                                                     reviewed and approved
                                                                     The Proposal on Formulating the
                                                                     Internal Audit Management
                                                                     Regulations, the Proposal on
                                                                     Formulating the Comprehensive
                                                                     Risk and Internal Control
                                                                     Management Measures and the
The 18th Extraordinary
                                                                     Authorization of Relevant
Meeting of the Ninth       October 25, 2023     October 27, 2023
                                                                     Responsibilities, the Proposal on
Board of Directors
                                                                     Amending the Financial
                                                                     Management System, the Proposal
                                                                     on Amending the Development
                                                                     Strategy and Planning Management
                                                                     Regulations, and the 2023 Third
                                                                     Quarter Report were reviewed and

                                                  65
                                                           Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                                                               approved
                                                                               The Proposal on Land Acquisition
                                                                               and Storage of Shenzhen Nanshan
 The 19th Extraordinary                                                        Power (Zhongshan) Power Co.,
 Meeting of the Ninth          November 7, 2023      November 8, 2023          Ltd. and the Proposal on Convening
 Board of Directors                                                            the Fourth Extraordinary General
                                                                               Meeting for 2023 were reviewed
                                                                               and approved
                                                                               The Proposal on Applying for
 The 20th Extraordinary
                                                                               Credit Lines from Financial
 Meeting of the Ninth          November 21, 2023
                                                                               Institutions by Pledge of Patents
 Board of Directors
                                                                               was reviewed and approved
                                                                               9 proposals, including the Proposal
                                                                               on Amending the Articles of
                                                                               Association of Shenzhen Nanshan
 The 21st Extraordinary
                                                                               Power Co., Ltd. and the Proposal
 Meeting of the Ninth          December 21, 2023     December 23, 2023
                                                                               on Amending the Rules of
 Board of Directors
                                                                               Procedure of the Board of Directors
                                                                               of Shenzhen Nanshan Power Co.,
                                                                               Ltd. were reviewed and approved

2. Attendance of directors at the Board of Directors and the General Meeting

             Attendance of directors at the Board of Directors and the General Meeting of Shareholders
                                                                                           Have you
                Number of                   Number of
                                                                                            failed to
                  times of     Number of     times of          Number of
                                                                            Number of     attend the    Number of
                attendance      times of    attendance          times of
                                                                             times of     meetings of    times of
                    at the       on-site       at the          attendance
  Name of                                                                    absences      Board of     attendance
                 Board of      attendance    Board of             at the
  Director                                                                   from the      Directors       at the
                 Directors        at the     Directors          Board of
                                                                             Board of      in person     General
                during the      Board of         by             Directors
                                                                            Directors        for two     Meeting
                 reporting      Directors   correspond          by proxy
                                                                                          consecutiv
                   period                       ence
                                                                                             e times
 Kong                                                                                0
                          12            3             9                 0                 No                     5
 Guoliang
 Hu Ming                  12            2             9                 1            0    No                     0
 Huang                                                                  0            0
                          12            3             9                                   No                     5
 Qing
 Chen                                                                   0            0
                          12            3             9                                   No                     5
 Yuhui
 Wu                                                                     0            0
                          12            3             9                                   No                     5
 Guowen
 Sun                                                                                 0
                          12            2             9                 1                 No                     4
 Huirong
                                                          66
                                                            Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


 Huang                                                                               0
                          12             3             9              0                   No                     3
 Xiqin
 Chen                                                                                0
                          12             2             9              1                   No                     2
 Zetong
 Du Wei                   12             3             9              0              0    No                     5

Note on failure to attend the Board of Directors in person for two consecutive times

During the reporting period, there is no failure to attend the Board of Directors in person for two consecutive
times.

3. Directors' objections to matters relating to the Company

Whether the directors have raised any objections to matters relating to the Company

□Yes      No

During the reporting period, the directors did not raise any objection to matters relating to the Company.

4. Other notes on directors' performance of duties

Whether the directors' recommendations to the Company have been adopted

Yes       □ No

The statement that the directors' proposals relating to the Company have or have not been adopted

During the reporting period, all directors of the company have been diligent and conscientious in carrying out
their work in strict accordance with the relevant regulations of CSRC and Shenzhen Stock Exchange, as well as
the Company's Articles of Association, Rules of Procedure of the Board of Directors and other systems, paid
close attention to the Company's standardized operation and business situation, and carefully studied the various
proposals submitted to the Board of Directors for review based on the Company's actual situation, so as to
ensure scientific decision-making and safeguard the legitimate rights and interests of the Company and all
shareholders.

VII. Information of Special Committees under the Board of Directors during the reporting period

                           Num
                                                                            Important                        Details
                            ber
 Name of                                                                    comments          Other           of the
                             of     Conveni
   the        Members                           Content of the meeting         and         performance       objectio
                           meeti    ng date
Committee                                                                  suggestions       of duties        ns (if
                            ngs
                                                                           put forward                         any)
                           held
              Kong                                                         All the
Strategy      Guoliang,                        Reviewing the Proposal      members
and           Hu Ming,                         on Using Temporarily        present
                                   January
Investment    Huang                            Idle Self-owned Funds       agreed to
                               5   16, 2023
Manageme      Qing,                            for the Deposit of          the proposal
nt            Chen                             Structured Deposits         without
Committee     Yuhui,                                                       objection
              Wu                   April 4,    Reviewing the 2022          All the
                                                           67
                              Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


Guowen   2023       Annual Performance        members
                    Report of the Strategy    present
                    and Investment            agreed to
                    Management                the proposal
                    Committee of the Board    without
                    of Directors              objection
                                                             1. Affiliated
                                                             committee
                                                             members,
                                                             Kong
                                                             Guoliang,
                                                             Huang Qing
                                                             and Chen
                                                             Yuhui
                                                             abstained from
                                              All the        voting;
                    Reviewing the Proposal
                                              members        2. Since the
                    on Investment in
                                              present        number of
         October    Shenzhen New Energy
                                              agreed to      non-affiliated
         17, 2023   Storage Industry Equity
                                              the proposal   committee
                    Fund and Related
                                              without        members
                    Transactions
                                              objection      attending the
                                                             meeting was
                                                             less than 3, the
                                                             Proposal was
                                                             directly
                                                             submitted to
                                                             the Board of
                                                             Directors of
                                                             the Company
                                                             for review.
                                              All the
                    Reviewing the Proposal
                                              members
                    on Land Acquisition
         Novemb                               present
                    and Storage of
         er 7,                                agreed to
                    Shenzhen Nanshan
         2023                                 the proposal
                    Power (Zhongshan)
                                              without
                    Power Co., Ltd.
                                              objection
                    Reviewing the Proposal    All the
                    on the Adjustment of      members
         Decemb
                    the Partnership           present
         er 21,
                    Agreement of Zhuhai       agreed to
         2023
                    Hengqin Zhuozhi           the proposal
                    Investment Partnership    without

                            68
                                                  Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                       (Limited Partnership)      objection
                                       and the Signing of the
                                       Supplemental
                                       Agreement to the
                                       Entrusted Management
                                       Agreement
                                                                  All the
                                       Reviewing the 2022
                                                                  members
                                       Annual Performance
                                                                  present
                            April 4,   Report of the
                                                                  agreed to
                            2023       Nomination Committee
                                                                  the proposal
                                       of the Board of
                                                                  without
                                       Directors
                                                                  objection
             Chen                      1. Reviewing the
Nominatio
             Zetong,                   Proposal on the            All
n                       2
             Hu Ming,                  Appointment of Mr. Li      members
Committee
             Du Wei                    Chao as the Company's      present at
                            Septemb    Deputy General             the meeting
                            er 18,     Manager 2. Reviewing       agreed to all
                            2023       the Proposal on the        the
                                       Appointment of Mr. Tao     proposals
                                       Lin as the Company's       without
                                       Deputy General             objection
                                       Manager
                                       1. Reviewing the 2022
                                                                  All
                                       Annual Performance
                                                                  members
                                       Report of the
                                                                  present at
                                       Remuneration and
                                                                  the meeting
                            April 4,   Assessment Committee
                                                                  agreed to all
                            2023       of the Board of
                                                                  the
Remunerati   Huang                     Directors 2. Reviewing
                                                                  proposals
on and       Xiqin,                    the Proposal on the
                                                                  without
Assessmen    Wu         2              2023 Annual
                                                                  objection
t            Guowen,                   Remuneration Plan
Committee    Du Wei                                               All the
                                       Reviewing the Proposal
                                                                  members
                                       on the Review of 2023
                            Septemb                               present
                                       Operating Performance
                            er 18,                                agreed to
                                       Responsibility Letter of
                            2023                                  the proposal
                                       the Company's Deputy
                                                                  without
                                       General Manager
                                                                  objection
             Huang                     Listening to and           All the
Audit                       January
             Xiqin,     7              discussing the             members
Committee                   18, 2023
             Sun                       Communication Letter       present at

                                                69
                                  Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


Huirong,               between Certified          the meeting
Chen                   Public Accountants and     have no
Zetong                 Those Charged with         objection
                       Governance submitted
                       by Lixinzhonglian
                       CPAS
                       1. Reviewing the 2022
                       Annual Financial
                       Report 2. Reviewing
                       the 2022 Annual Audit
                       Report on Internal
                       Control 3. Reviewing
                       the Proposal on the
                       2022 Annual Financial
                       Final Report 4.            All
                       Reviewing the Proposal     members
                       on Provision for           present at
                       Impairment of Assets       the meeting
           April 4,
                       for 2022 5. Reviewing      agreed to all
           2023
                       the Proposal on the        the
                       Profit Distribution Plan   proposals
                       for 2022 6. Reviewing      without
                       the Proposal on            objection
                       Submitting for Review
                       the 2022 Evaluation
                       Report on Internal
                       Control 7. Reviewing
                       the 2022 Annual
                       Performance Report of
                       the Audit Committee of
                       the Board of Directors
                       1. Reviewing the 2023
                       First Quarter Report 2.    All
                       Listening to the           members
                       Financial Settlement       present at
                       Report for the First       the meeting
           April 24,
                       Quarter of 2023 3.         agreed to all
           2023
                       Listening to the Work      the
                       Report of Audit and        proposals
                       Risk Control               without
                       Department for the First   objection
                       Quarter of 2023
           August      1. Reviewing the full      All
           23, 2023    text and summary of the    members

                                70
                      Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


           2023 Semi-annual           present at
           Report 2. Reviewing        the meeting
           the Proposal on the        agreed to all
           Engagement of an           the
           Auditor for 2023 and       proposals
           the Determination of Its   without
           Remuneration 3.            objection
           Listening to the 2023
           Semi-annual Financial
           Performance Report 4.
           Listening to the Work
           Report of Audit and
           Risk Control
           Department in the
           Second Quarter of 2023
                                      All the
           Reviewing the Proposal
                                      members
           on Investment in
                                      present
October    Shenzhen New Energy
                                      agreed to
17, 2023   Storage Industry Equity
                                      the proposal
           Fund and Related
                                      without
           Transactions
                                      objection
           1. Reviewing the
           Proposal on
           Formulating the
           Internal Audit
           Management
           Regulations 2.
           Reviewing the Proposal
                                      All
           on Formulating the
                                      members
           Comprehensive Risk
                                      present at
           and Internal Control
                                      the meeting
October    Management Measures
                                      agreed to all
25, 2023   and the Authorization of
                                      the
           Relevant
                                      proposals
           Responsibilities 3.
                                      without
           Reviewing the Proposal
                                      objection
           on Amending the
           Financial Management
           System 4. Reviewing
           the 2023 Third Quarter
           Report 5. Listening to
           the Financial
           Performance Report for

                    71
                                                         Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                              the Third Quarter of
                                              2023 6. Listening to the
                                              Work Report of Audit
                                              and Risk Control
                                              Department for the
                                              Third Quarter of 2023
                                                                         All the
                                              Listening to the 2023      members
                                   Novemb
                                              Audit Plan of Shenzhen     present at
                                   er 6,
                                              Nanshan Power Co.,         the meeting
                                   2023
                                              Ltd.                       have no
                                                                         objection

8. Work of the Board of Supervisors

Whether the Board of Supervisors has identified any risks to the Company in its supervisory activities during
the reporting period

□Yes  No

The Board of Supervisors has no objection to the supervision matters during the reporting period.

9. Employees

1. Number of employees, professional composition and education background

 Number of active employees of parent company at the
                                                                                                          239
 end of the reporting period
 Number of active employees of major subsidiaries at
                                                                                                           45
 the end of the reporting period
 Total number of active employees at the end of the
                                                                                                          284
 reporting period
 Total number of employees receiving remuneration in
                                                                                                          281
 the current period
 Number of retired employees whose the parent
 company and major subsidiaries have to bear the                                                            0
 expenses
                                          Professional composition
                      Category                                                   Number
 Production staff                                                                                          71
 Salesperson                                                                                                7
 Technical staff                                                                                           45
 Financial staff                                                                                           14
 Administrative staff                                                                                     147
 Total                                                                                                    284
                                             Education background
                        Category                                                 Number

                                                       72
                                                          Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


 High school and below                                                                                          28
 Junior college and technical secondary school
                                                                                                                94
 education
 Bachelor's degree                                                                                             137
 Master's degree or above                                                                                       25
 Total                                                                                                         284

2. Remuneration policy

The Board of Directors implements the principle of annual remuneration quota accrual for the company based
on fixed basic remuneration. The remuneration of the Chairman shall be submitted to the General Meeting for
approval and determination after being reviewed and approved by the Board of Directors; The remuneration of
senior officers at the level of General Manager and Deputy General Manager shall be formulated by the
Remuneration and Assessment Committee of the Board of Directors and submitted to the Board of Directors for
approval and determination. The remuneration of other personnel is authorized to be managed by the
Company's management team based on the principles of "fixing salary based on position" and "getting paid
according to work". Within the annual remuneration quota approved by the Board of Directors, the Company
strictly controls the remuneration costs, establishes a remuneration incentive mechanism linked to the
performance of the employees, formulates the remuneration standards, distribution plans, assessment and
rewards and punishment methods for the personnel at all levels, and is responsible for organizing and
implementing them, so as to give full play to the role of the incentive role of the remuneration.

3. Training plan

The Company attaches great importance to employee training and has established a more complete training
system. By strengthening employee training, it improves the job skills and comprehensive quality of the
employees, better meets the needs of the Company's operation and management for talent, and at the same time
cultivates reserve talents for the Company's sustainable development. During the reporting period, in terms of
safety training, the Company has organized safety education and training, emergency rescue drills, emergency
response capability training, etc. at all levels of the Company in accordance with the Work Safety Law and
other laws and regulations in respect of safety training, so as to improve the safety awareness, accident
prevention capabilities and business level of cadres and employees at all levels. In terms of on-the-job training,
the Company has adopted a combination of expatriate learning and internal training, carried out certified on-the-
job training for key business and technical positions to improve the capabilities of employees to perform their
duties, and also relied on the gas turbine simulation training base to improve the practical operation and
adaptability of power plant operators. In terms of training and learning in Party members, the Company's Party
Committee and Party Branch have strictly followed the requirements of the higher Party organizations,
continued to strengthen education and learning in Party members through a combination of online and offline
methods, and implemented daily personal self-study through the distribution of books and materials. At the
same time, they have strictly implemented the "Three Meetings and One Lesson" system, enriched the form of
learning and education through diversified forms such as organizing visits to red bases, special trainings, study
tours, and "Party lectures given by the Secretaries", etc., so as to ensure that the Party organization plays the
role of strong backing and reliable support, and leads the majority of the Party members to play a vanguard and
exemplary role.



                                                        73
                                                            Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


4. Outsourcing of labor

□Applicable  Not applicable

X. Profit distribution and capitalization of capital reserve of the Company

The formulation, implementation or adjustment of profit distribution policies, especially cash dividend policies,
during the reporting period

□Applicable  Not applicable

During the reporting period, the Company are profitable and the parent company's profits available for
distribution to shareholders are positive, but no cash dividend distribution plan has been put forward

Applicable □ Not applicable

In view of the fact that the Company is still facing tremendous operating pressure and is in a critical period of
simultaneous promotion of operation and transformation and development work of assets in stock, it is difficult
to meet the requirements for profit distribution conditions in the Company's Articles of Association. Therefore,
the Company proposes not to make any profit distribution in 2023. The undistributed profits of the parent
company will be mainly used to supplement the working capital and meet operational needs to ensure the
achievement of operating objectives.

Profit distribution and capitalization of capital reserve during the reporting period

□Applicable  Not applicable

The Company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share
capital during the year.

XI. Implementation of the Company's equity incentive plan, employee stock ownership plan or other
employee incentive measures

□Applicable  Not applicable

The company has no equity incentive plan, employee stock ownership plan or other employee incentive
measures and their implementation during the reporting period.

XII. Construction and implementation of the internal control system during the reporting period

1. Construction and implementation of internal control

In accordance with the provisions of the Basic Standards Internal Control of Enterprises and its supporting
guidelines, the Company timely updates and improves the Company's internal control system, establishes a set
of scientifically designed and applicable internal control system, and supervises and evaluates the Company's
internal control management by the Audit Committee and the Internal Audit Department, which together form
the Company's risk-based internal control management organization system. Through the operation, analysis
and evaluation of the internal control system, the Company has effectively prevented risks in operation and
management and promoted the realization of internal control objectives.

2. Details of major defects in internal control identified during the reporting period

□Yes  No

                                                          74
                                                            Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


XIII. Management and control of subsidiaries by the Company during the reporting period

The Company has formulated the Regulations on Property Rights Management, which clarifies the relationship
between responsibilities, rights and benefits in the property rights management of affiliated enterprises, ensures
that assets are clearly attributed, rights and responsibilities are clearly defined, promotes the further scientific,
standardized and legalized management of property rights, and meets the needs of the Company's overall
development strategy.

XIV. Evaluation Report on Internal Control or Audit Report on Internal Control

1. Evaluation Report on Internal Control

 Date of disclosure of full text of
 Evaluation Report on Internal           April 12, 2024
 Control
 Full-text disclosure index of
                                         2023 Evaluation Report on Internal Control, cninfo.com.cn
 Evaluation Report on Internal
                                         http://www.cninfo.com.cn
 Control
 Ratio of the total assets of the unit
 included in the evaluation scope to
                                                                                                             93.10%
 the total assets of the Company's
 consolidated financial statements
 Ratio of operating revenue of the
 unit included in the evaluation
 scope to operating revenue of the                                                                          100.00%
 Company's consolidated financial
 statements
                                           Defect identification standards
               Category                            Financial report                     Non-financial report
                                         Major defects: under major             Major defects: under major
                                         business activities, many              business activities, many
                                         consolidated statements companies      consolidated statements companies
                                         have serious defects; or a few         have serious defects; or a few
                                         consolidated statements companies      consolidated statements companies
                                         have serious defects, but the          have serious defects, but the
                                         companies with serious defects are     companies with serious defects are
                                         the main participant in the major      the main participant in the major
 Qualitative standards                   business activities;                   business activities;
                                         Great defects: under major             Great defects: under major
                                         business activities, a few             business activities, a few
                                         consolidated statements companies      consolidated statements companies
                                         have serious defects, and the          have serious defects, and the
                                         companies with serious defects are     companies with serious defects are
                                         not the main participants in the       not the main participants in the
                                         major business activities; or          major business activities; or
                                         multiple consolidated statements       multiple consolidated statements
                                                          75
                                                         Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                      companies have moderate defects;        companies have moderate defects;
                                      or a few consolidated statements        or a few consolidated statements
                                      companies have moderate defects,        companies have moderate defects,
                                      but the companies with moderate         but the companies with moderate
                                      defects are the main participants in    defects are the main participants in
                                      the major business activities;          the major business activities;
                                      General defect: in major business       General defect: in major business
                                      activities, a few companies sharing     activities, a few companies sharing
                                      consolidated statements have            consolidated statements have
                                      moderate defect, and these              moderate defect, and these
                                      companies with moderate defect          companies with moderate defect
                                      are not the main participants in the    are not the main participants in the
                                      major business activities; or           major business activities; or
                                      companies share consolidated            companies share consolidated
                                      statements only have common             statements only have common
                                      defects; or there are no defects in     defects; or there are no defects in
                                      internal control in major business      internal control in major business
                                      activities, with only defects in        activities, with only defects in
                                      internal control in non-major           internal control in non-major
                                      business activities.                    business activities.
                                      Major defects: misstated amount is      Major defect: amount of direct loss
                                      ≥ 0.5% of total assets in the          ≥ 0.5% of total assets in the
                                      consolidated statements;                consolidated statements;
                                      great defect: 0.2% of total assets in   great defect: 0.2% of total assets in
                                      the consolidated statements ≤          the consolidated statements ≤
 Quantitative standards               misstated amount < 0.5% of total        amount of direct loss < 0.5% of
                                      assets in the consolidated              total assets in the consolidated
                                      statements;                             statements;
                                      general defect: misstated amount <      general defect: amount of direct
                                      0.2% of total assets in the             losses < 0.2% of total assets in the
                                      consolidated statements.                consolidated statements.
 Number of major defects in
                                                                                                                  0
 financial reports
 Number of major defects in non-
                                                                                                                  0
 financial reports
 Number of great defects in
                                                                                                                  0
 financial reports
 Number of great defects in non-
                                                                                                                  0
 financial reports

2. Audit Report on Internal Control

Applicable      □ Not applicable

                               Considerations in Audit Report on Internal Control

                                                       76
                                                           Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


 The accounting firm believes that Shenzhen Nanshan Power Co., Ltd. has maintained effective financial report
 on internal control in all material aspects in accordance with the Basic Standards for Enterprise Internal Control
 and relevant regulations.
 Disclosure of Audit Report on Internal Control             Disclosed
  Full-text disclosure date of the Audit Report on
                                                              April 12, 2024
 Internal Control
 Full-text disclosure index of the Audit Report on            2023 Audit Report on Internal Control can be found
 Internal Control                                             on http://www.cninfo.com.cn
 Opinion type of the internal audit report                    Standard unqualified opinion
 Whether there are major defects in the non-financial
                                                              No
 report

Whether the accounting firm issues an Audit Report on Internal Control with non-standard opinions

□Yes  No

Whether the Audit Report on Internal Control issued by the accounting firm is consistent with the self-
evaluation report of Board of Directors

Yes □ No

XV. Rectification of issues found in the self-examination of the special action on corporate governance of
the listed company

The self-examination and rectification of the special action on corporate governance of the listed company has
been completed in 2021. During the reporting period, the Company strictly followed the relevant laws and
regulations, closely focused on the Company's development strategy, diligently performed its obligations and
exercised its powers, conscientiously implemented various resolutions of the General Meeting, actively and
effectively carried out various tasks of Board of Directors, and effectively safeguarded the legitimate rights and
interests of the Company and all its shareholders.




                                                         77
                                                           Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                       Section V Environmental and social responsibilities

I. Major environmental protection issues

Whether the listed company and its subsidiaries are key pollutant-discharging units announced by the
environmental protection department

Yes □ No

1. Policies and industry standards related to environmental protection

The Company belongs to the thermal power generation industry under the national economic classification 4411,
and is currently implementing the Emission Standards of Air Pollutants for Thermal Power Plants GB-13223-
2011. At the same time, its affiliated Nanshan Power Plant strictly controls nitrogen oxide emissions in
accordance with the 2018 "Shenzhen Blue" Sustainable Action Plan.

2. Administrative licenses for environmental protection

Nanshan Power Plant, the Company's subsidiary, has obtained a pollutant discharge license issued by the
Nanshan Administration Bureau of Shenzhen Ecological Environment Bureau, with license No.
of:91440300764983799T001P. The subsidiary Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. has
obtained a pollutant discharge license issued by the Zhongshan Ecological Environment Bureau, with license
No. of: 914420007564567614001P.

3. Industry emission standards and specific information on the pollutant emissions involved in production and
operating activities

  Name
             Types      Names
  of the                                                          Emissi     Polluta
            of main     of main              Numbe     Distrib                                    Total
 compa                                                               on         nt                         Excessi
            polluta     polluta    Emissi      r of    ution of                         Total    approv
  ny or                                                           concent    emissio                         ve
            nts and     nts and     on       dischar   dischar                         emissio     ed
  name                                                            ration/i      n                          emissio
            specific    specific   mode         ge        ge                             ns      emissio
  of its                                                           ntensit   standar                         n
            polluta     polluta              outlets   outlets                                     ns
 subsidi                                                              y         ds
              nts         nts
   ary
                                                                             "Shenz
                                   Concen
 Shenzh                                                                      hen
                                   trated              Inside
 en                                                                          Blue"
                                   emissio             the
 Nansha     Nitroge     Nitroge                                              emissio
                                   n of                Nansha     <15                  46.59     457.5
 n          n           n                    2                               n                             None
                                   boiler              n          mg/m                 tons      tons
 Power      oxides      oxides                                               standar
                                   and                 Power
 Co.,                                                                        d
                                   chimne              Plant
 Ltd.                                                                        <15mg/
                                   y
                                                                             m
 Shenzh                            Concen              Inside                "Shenz
            Nitroge     Nitroge
 en New                            trated              the        <15        hen       20.37     228.75
            n           n                    1                                                             None
 Power                             emissio             Nansha     mg/m       Blue"     tons      tons
            oxides      oxides
 Industri                          n of                n                     emissio
                                                          78
                                                         Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


 al Co.,                        boiler               Power               n
 Ltd.                           and                  Plant               standar
                                chimne                                   d
                                y                                        <15mg/
                                                                         m
 Shenzh
 en                             Concen               Inside
 Nansha                         trated               the
 n                              emissio              Zhongs
           Nitroge    Nitroge
 Power                          n of                 han       <50       GB132      9.65     803.06
           n          n                   2                                                            None
 (Zhong                         boiler               Nanlan    mg/m      23         tons     tons
           oxides     oxides
 shan)                          and                  g
 Power                          chimne               Power
 Co.,                           y                    Plant
 Ltd.

4. Treatment of pollutants

Shenzhen Nanshan Power Co., Ltd. has two sets of 9E units and Shenzhen New Power Industrial Co., Ltd. has
one set of 9E unit, both of which use General Electric's DLN1.0+ low-nitrogen combustion system. Shenzhen
Nanshan Power (Zhongshan) Power Co., Ltd. has two sets of 9E units, which adopt General Electric's DLN1.0
low-nitrogen combustion system. During the reporting period, the Company and its subsidiaries strictly
complied with national environmental protection laws and regulations, with all pollutants discharged meeting
the national emission standards. There were no environmental pollution accidents, nor were there any penalties
imposed by relevant departments due to major environmental problems.

5. Emergency plan for environmental emergencies

The emergency plan for sudden environmental incidents has been filed with the Guangdong Provincial
Environmental Protection Department and the corresponding municipal environmental protection bureau.

6. Environmental self-monitoring plan

An environmental self-monitoring plan has been prepared and reviewed by the environmental protection
department; the monitoring data was disclosed timely on the environmental protection department’s website.

7. Information on investment in environmental governance and protection and payment of environmental
protection tax

The Company attaches great importance to environmental protection and strengthens on-site management by
carrying out special tasks such as the investigation of potential environmental risks and standardized
management of hazardous waste; in addition, the Company continues to increase investment on the
maintenance of environmental protection facilities and improves environmental protection infrastructure. All
these initiatives have greatly improved the level of pollution prevention and control. The Company pays
environmental protection tax in strict accordance with the Presidential Order No. 61 of the Environmental
Protection Tax Law of the People's Republic of China and other relevant laws and regulations.

8. Measures taken to reduce carbon emissions during the reporting period and the results

                                                       79
                                                          Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

Applicable       □ Not applicable

During the reporting period, the Company's affiliated power plants continued to improve unit efficiency and
reduce carbon emissions by taking technical transformation measures such as unit condenser technical and
turbine high-pressure bypass valve technology.

9. Administrative penalties for environmental issues during the reporting period

None

10. Other environmental information that shall be disclosed

None

11. Other environmental protection related information

None

12. The Company shall comply with the disclosure requirements of power supply industry stipulated in the
Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3 - Industry Information
Disclosure.

None

13. Information on environmental accidents occurring in the listed company

None

II. Social responsibilities

In 2023, although the Company faced many challenges in production, operation and management, the Company
had the courage to assume social responsibilities, actively ensured power supply when the cost and price of
power generation were seriously inverted, and conscientiously performed its social responsibilities to the best of
its ability. In terms of work safety, the Company attached great importance to work safety by identifying the
main disparities. We vigorously promoted the improvement of employees' safety responsibility awareness and
safety skills, effectively enhanced their work initiative, and maintained the "Five Nos" goal of work safety. In
terms of environmental protection, the Company strictly complied with national and local environmental
protection regulations, and always adhered to the concept of clean power generation and circular economy
development. All environmental protection work was effectively implemented, with environmental protection
emission meeting the requirement and no environmental pollution accidents. In terms of charity assistance, the
Company actively implemented Shenzhen's consumption poverty alleviation policy, participating in
consumption poverty alleviation with a total contribution of RMB 142,200. We fulfilled social responsibilities
to the best of our ability.

III. Consolidation and enhancing of the results of poverty eradication and rural revitalization

In 2023, the Company actively responded to the calls of the Party Central Committee and the State Council on
poverty alleviation and rural revitalization. According to Shenzhen's consumption poverty alleviation policy, we
actively participated in consumption poverty alleviation despite the difficulties encountered in the Company's
production and operation. The total amount of contribution regarding consumption poverty alleviation was
RMB 142,200.

                                                         80
 Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report




81
                                                         Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                   Section VI Important matters

I. Fulfillment of commitments

1. Commitments made by the Company’s actual controller, shareholders, related parties, acquirers and
the Company that have been fulfilled during the reporting period and have not yet been fulfilled by the
end of the reporting period

□Applicable  Not applicable

During the reporting period, there were no commitments made by the Company’s actual controller, shareholders,
related parties, acquirers and the Company that were fulfilled during the reporting period and had not yet been
fulfilled by the end of the reporting period.

2. If there is a profit forecast for the Company's assets or projects and the reporting period is still in the
profit forecast period, the company shall explain that the assets or projects have met the original profit
forecast and the reasons for that.

□Applicable  Not applicable

II. Non-operating capital occupation of the listed company by controlling shareholders and other related
parties

□Applicable  Not applicable

There was no non-operational occupation of funds by the controlling shareholder or other related parties of the
listed company during the reporting period.

III. Illegal external guarantees

□Applicable  Not applicable

The Company had no illegal external guarantees during the reporting period.

IV. Statement of the Board of Directors on the latest "Non-standard Audit Report"

□Applicable  Not applicable

V. Explanation of the "Non-standard Audit Report" issued by the accounting firm for the reporting
period by the Board of Directors, Board of Supervisors and independent directors (if any)

□Applicable  Not applicable

VI. Description of changes in accounting policies, accounting estimates or correction of major accounting
errors compared with the previous year's financial report

□Applicable  Not applicable

The company had no changes in accounting policies, accounting estimates or correction of major accounting
errors during the reporting period.




                                                       82
                                                           Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


VII. Explanation of changes in the scope of consolidated statements compared with the previous year's
financial report

Applicable       □ Not applicable

As of December 31, 2023, there were a total of 8 entities included in the Company's consolidated financial
statements, one less than at the beginning of the period. The main reason was that during the reporting period,
the business strategy of Shenzhen Nanshan Power Zhongshan Company adjusted. From the perspective of the
Company's subsequent business strategy, Shenzhen Nanshan Power (Zhongshan) Warehousing Co., Ltd., the
Company's controlling subsidiary, no longer has the necessity to survive. As a result, we applied for the
cancellation of registration for the company on December 13, 2023.

VIII. Appointment and dismissal of the accounting firm

Currently employed accounting firm

 Name of the domestic accounting firm                         Lixinzhonglian CPAS (Special General Partnership)
 Remuneration of the domestic accounting firm (RMB
                                                              73
 10,000)
 Length of audit services provided by the domestic
                                                              5
 accounting firm
 Name of certified public accountant of domestic
                                                              Cao Wei and Zou Yang
 accounting firm
 Length of audit services provided by certified public
                                                              5
 accountant of the domestic accounting firm

Whether to hire a new accounting firm during the current period

□Yes  No

Recruitment of accounting firm, financial consultants or sponsors for internal control audit

Applicable □ Not applicable

During the reporting period, the Company hired Lixinzhonglian CPAS (Special General Partnership) as the
Company's accounting firm for internal control audit, and paid an audit fee of RMB 230,000.

IX. Possible delisting after the disclosure of the annual report

□Applicable  Not applicable

X. Matters related to bankruptcy and reorganization

□Applicable  Not applicable

The Company had no bankruptcy or reorganization related matters during the reporting period.

XI. Major litigation and arbitration matters

□Applicable  Not applicable

The Company had no major litigation or arbitration matters during the reporting period.


                                                         83
                                                            Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


XII. Punishment and rectification

□Applicable  Not applicable

The Company had no penalties or rectifications during the reporting period.

XIII. Integrity of the Company, its controlling shareholders and actual controllers

Applicable □ Not applicable

During the reporting period, the Company and the its largest shareholder did not fail to fulfill the effective court
judgments, or had large amounts of debts that were not repaid at maturity, and were in good standing in terms of
integrity. The company had no controlling shareholder or actual controller during the reporting period.

XIV. Major related transactions

1. Related transactions related to daily operations

□Applicable  Not applicable

The Company had no related transactions related to daily operations during the reporting period.

2. Related transactions involving acquisition or sale of assets or equity

□Applicable  Not applicable

The Company had no related transactions involving acquisition or sale of assets or equity during the reporting
period.

3. Related transactions involving joint external investment

Applicable □ Not applicable

                                                                                 Total
                                                                 Registered                Net assets    Net profit
                                                Main                           assets of
                                Name of                          capital of                  of the        of the
     Co-        Relationshi                  business of                          the
                                   the                          the investee                investee     investee
  investors          p                           the                           investee
                                investee                           (RMB                      (RMB          (RMB
                                              investee                          (RMB
                                                                  10,000)                   10,000)       10,000)
                                                                               10,000)
 Shenzhen                                    Use private
 Capital                      Shenzhen       equity
 Holdings                     New            funds to
 Co., Ltd.,                   Energy         engage in
 Shenzhen                     Storage        equity
 Yuanzhi        Related       Industry       investment
                                                                               310,227.1
 Energy         legal         Equity         s,                     621,000                310,227.16        -272.84
                                                                                       6
 Storage        person        Fund           investment
 Private                      Partnership    manageme
 Equity                       (Limited       nt, asset
 Fund                         Partnership    manageme
 Manageme                     )              nt and
 nt Co.,                                     other
                                                           84
                                                           Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


 Ltd., etc.                                 activities
                                            (operating
                                            activities
                                            can only be
                                            carried out
                                            after
                                            registering
                                            with the
                                            Asset
                                            Manageme
                                            nt
                                            Associatio
                                            n of China)

4. Related credit and debt accounts

□Applicable  Not applicable

The Company had no related credit and debt accounts during the reporting period.

5. Transactions with financial companies that have relationship with the Company

□Applicable  Not applicable

There were no deposits, loans, credit or other financial business between the Company and financial companies
with relationship and related parties.

6. The transactions between financial companies controlled by the Company and related parties

□Applicable  Not applicable

There were no deposits, loans, credit or other financial business between financial companies controlled by the
Company and related parties.

7. Other major related transactions

□Applicable  Not applicable

The Company had no other major related transactions during the reporting period.

XV. Major contracts and their performance

1. Custody, contracting and lease matters

(1) Custody

□Applicable  Not applicable

The Company had no custody during the reporting period.

(2) Contracting

□Applicable  Not applicable

                                                          85
                                                            Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

The Company had no contracting during the reporting period.

(3) Lease

□Applicable  Not applicable

The Company had no lease during the reporting period.

2. Material guarantee

□Applicable  Not applicable

The Company had no material guarantee during the reporting period.



3. Entrusting others to asset management

(1) Entrusted wealth management

Applicable □ Not applicable

Overview of entrusted wealth management during the reporting period

                                                                                             Unit: RMB 10,000

                                                                                                    Overdue
                        Sources of
                                           Amount of                              Overdue       recovery of the
                         funds for                              Outstanding
      Type                              entrusted wealth                        amount not         amount of
                     entrusted wealth                            balance
                                          management                             recovered        impairment
                       management
                                                                                                    accrued
 Bank financial      Self-owned
                                              21,001.37                  0.00           0.00               0.00
 products            funds
                  Total                       21,001.37                  0.00           0.00               0.00

Specific cases of high-risk entrusted wealth management with a large single amount or low security and poor
liquidity

□Applicable  Not applicable

The principal of entrusted wealth management is unlikely to be recovered or other cases that may lead to
impairment

□Applicable  Not applicable

(2) Entrusted loans

□Applicable  Not applicable

The Company had no entrusted loans during the reporting period.

4. Other major contracts

□Applicable  Not applicable


                                                           86
                                                        Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


XVI. Description of other major matters

Applicable □ Not applicable

1. Land of Nanshan Power Plant: in June 2023, the Company learned about the Notice of Shenzhen Municipal
Bureau of Planning and Natural Resources on Issuing the 2023 Shenzhen Urban Renewal and Land Preparation
Plan on the official website of the Shenzhen Planning and Natural Resources Bureau. According to the relevant
content in its appendix, 2023 Shenzhen Urban Renewal and Land Preparation Plan still includes the Land of
Nanshan Power Plant and related content. (For details, please see the Announcement on Shenzhen Municipal
Bureau of Planning and Natural Resources Issuing the 2023 Shenzhen Urban Renewal and Land Integration
Plan disclosed by the Company in the Securities Times and Jcninfo.com.cn, with announcement No. of: 2023-
023)

2. Matters of obtaining government subsidies: on November 21, 2023, the Company received a financial relief
subsidy of RMB 25.4 million from the Shenzhen Municipal Government dedicated for gas-fired thermal power
plants. (For details, please refer to the Announcement on Obtaining Government Subsidies disclosed by the
Company in the Securities Times and cninfo.com.cn, with announcement No. of: 2023-050)

Except for the above matters, the refunds due to the Company's "Project Technical Transformation Benefit
Fund" had no progress or change during the reporting period.

XVII. Major events of the Company's subsidiaries

Applicable □ Not applicable

1. Matters concerning the shutdown of two sets of 9E gas-fired units of Shenzhen Nanshan Power Zhongshan
Company: on November 6, 2023, the Company received Energy Bureau of Guangdong Province's Letter on
Matters Related to the Shutdown of the Unit of Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd.
Nanlang Power Plant (YNDLH [2023] No. 672). According to the Letter, Energy Bureau of Guangdong
Province agreed to shut down two sets of 180MW gas-fired cogeneration units of the Shenzhen Nanshan Power
(Zhongshan) Power Co., Ltd. Nanlang Power Plant. (For details, please see the Announcement on the Progress
of the Shutdown and Retirement of Two Sets of 9E Gas-fired Units of the Company's Subsidiary Shenzhen
Nanshan Power (Zhongshan) Power Co., Ltd. disclosed by the Company in Securities Times and cninfo.com.cn,
with announcement No. of: 2023-045)

2. Land acquisition and storage matters of Shenzhen Nanshan Power Zhongshan Company: the Company held
the 19th Extraordinary Meeting of the Ninth Board of Directors, the 10th Extraordinary Meeting of the Ninth
Board of Supervisors on November 7, 2023, and the Fourth Extraordinary General Meeting of 2023 on
November 24, 2023. These meetings reviewed and adopted the Proposal on Land Acquisition and Storage of
Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd., and agreed the State-owned Land Use Right
Requisition Agreement and Relocation Compensation Agreement signed by Shenzhen Nanshan Power
Zhongshan Company and Zhongshan Cuiheng New District Management Committee. On December 15, 2023,
the company disclosed the "Progress Announcement on Land Acquisition and Storage Related Matters of the
Controlling Subsidiary Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd. " Shenzhen Nanshan Power
Zhongshan Company and Cuiheng New District Management Committee formally signed the " state-owned
land use right Requisition Agreement" and " relocation compensation agreement ". On December 20, 2023, the
Company disclosed the Announcement on the Progress of Matters Related to Land Acquisition and Storage of
the Company's Subsidiary Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd., indicating that Shenzhen

                                                      87
                                                     Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

Nanshan Power Zhongshan Company received the first payment of the first phase of compensation in the
amount of RMB 104,000,000. (For details, please refer to the Announcement on Resolutions of the 19th
Extraordinary Meeting of the Ninth Board of Directors, the Announcement on Resolutions of the 10th
Extraordinary Meeting of the Ninth Board of Supervisors, Announcement on Matters Related to Land
Acquisition and Storage of the Company's Subsidiary Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd.,
Announcement on Resolutions of the Fourth Extraordinary General Meeting in 2023, and Announcement on the
Progress of Matters Related to Land Acquisition and Storage of the Company's Subsidiary Shenzhen Nanshan
Power (Zhongshan) Power Co., Ltd. disclosed by the Company in Securities Times and cninfo.com.cn, with
announcement No. of: 2023-046, 047, 048, 051, 52, 53)




                                                   88
                                                        Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                       Section VII Changes in shares and shareholders

I. Changes in shares

1. Changes in shares

                                                                                                   Unit: share

                   Before the
                                         Increase or decrease in the change (+, -)           After the change
                    change
                                                            Provident
                                   Issuance
                Quantit                       Bonus           fund
                          Ratio     of new                              Others   Subtotal   Quantity   Ratio
                  y                           shares        conversio
                                    shares
                                                                n
 I. Shares
 subject to               0.0022                                                                        0.0022
                12,994                                                                       12,994
 selling                      %                                                                             %
 restrictions
 1. State
 shareholdin
 g
 2. State-
 owned legal
 person
 shareholdin
 g
 3. Other
 domestic                 0.0022                                                                        0.0022
                12,994                                                                       12,994
 shareholdin                  %                                                                             %
 gs
 Including:
 domestic
 legal person
 shareholdin
 g
 Domestic
 natural
                          0.0022                                                                        0.0022
 person         12,994                                                                       12,994
                              %                                                                             %
 shareholdin
 g
 4. Foreign
 shareholdin
 g
 Including:
 foreign
                                                       89
                                                         Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


 legal person
 shareholdin
 g
 Foreign
 natural
 person
 shareholdin
 g
 II. Shares
 without         602,74    99.997                                                           602,749,       99.9978
 selling          9,602       8%                                                                602             %
 restrictions
 1. RMB
                 338,89    56.223                                                           338,895,       56.2236
 ordinary
                  5,156       6%                                                                156             %
 shares
 2.
 Domestic-
                 263,85    43.774                                                           263,854,       43.7742
 listed
                  4,446       2%                                                                446             %
 foreign
 shares
 3. Overseas-
 listed
 foreign
 shares
 4. Others
 III. Total
                 602,76    100.00                                                           602,762,        100.00
 number of
                  2,596        %                                                                596             %
 shares

Reasons for changes in shares

□Applicable  Not applicable

Approval status of changes in shares

□Applicable  Not applicable

Transfer status of changes in shares

□Applicable  Not applicable

The impact of changes in shares on basic earnings per share and diluted earnings per share, net assets per share
attributable to the Company's ordinary shareholders, and other financial indicators in the most recent year and
the most recent period

□Applicable  Not applicable

Other information that the Company deems necessary or that securities regulators require to be disclosed

                                                       90
                                                          Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

□Applicable  Not applicable

2. Changes in shares with selling restrictions

□Applicable  Not applicable

II. Issuance and listing of securities

1. Securities issuance (excluding preferred shares) during the reporting period

□Applicable  Not applicable

2. Explanation of changes in the Company's total number of shares and shareholder structure, and
changes in the Company's asset and liability structure

□Applicable  Not applicable

3. Existing internal employee shares

□Applicable  Not applicable

III. Shareholders and actual controllers

1. Number of the Company's shareholders and shareholding status

Unit: share

                                                    Total
                          Total                     number
                          number                    of
                          of                        preferred
 Total                                                                       Total number of
                          ordinary                  sharehold
 number                                                                      preferred
                          sharehold                 ers whose
 of                                                                          shareholders whose
                          ers at the                voting
 ordinary                                                                    voting right were
                          end of the                right
 sharehold      48,884                    54,471                           0 restored at the end of              0
                          previous                  were
 ers at the                                                                  the previous month
                          month                     restored
 end of the                                                                  before the annual
                          before the                at the end
 reporting                                                                   report disclosure date
                          annual                    of the
 period                                                                      (if any) (see Note 8)
                          report                    reporting
                          disclosure                period (if
                          date                      any) (see
                                                    Note 8)
  Shareholding status of shareholders holding more than 5% of the shares or the top 10 shareholders (excluding
                                         shares lent through refinancing)
                                        Number       Increases    Number      Number         Pledge, marking or
                                       of shares        and       of shares   of shares            freezing
  Name of Nature of
                          Sharehold     held at      decreases held with         with
 sharehold sharehold
                           ing ratio the end of        during      selling     selling       Share
      er         er                                                                                      Quantity
                                           the          the      restriction restriction     status
                                       reporting reporting            s           s
                                                        91
                                                    Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                    period      period
HONG
KONG
NAM          Overseas
                                   92,123,24                          92,123,24
HOI          legal        15.28%
                                           8                                  8
(INTERN      person
ATIONA
L) LTD
Shenzhen     State-
Guangju      owned                 73,666,82                          73,666,82
                          12.22%
Industrial   legal                         4                                  4
Co., Ltd.    person
Shenzhen     State-
Energy       owned                 65,106,13                          65,106,13
                          10.80%
Corporati    legal                         0                                  0
on           person
BOCI
SECURI       Overseas
                                   11,522,04           -              11,522,04
TIES         legal        1.91%
                                           8   2,586,990                      8
LIMITE       person
D
             Domestic
Zeng
             natural      1.19%    7,159,600                          7,159,600
Ying
             person
China
Merchant
s            Overseas
Securities   legal        0.88%    5,330,854     -99,874              5,330,854
(Hong        person
Kong)
Co., Ltd.
Meiyi        Domestic
Investme     non-state-
nt Real      owned        0.87%    5,223,200                          5,223,200
Estate       legal
Co., Ltd.    persons
LISHER       Overseas
YNZHA        natural      0.66%    4,005,959   1,441,759              4,005,959
NMING        person
Haitong
Internatio   Overseas
nal          legal        0.65%    3,908,357                          3,908,357
Securities   person
Company
                                                  92
                                                             Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


Limited-
Account
Client
             Domestic
Huang
             natural             0.64%    3,866,500                              3,866,500
Yilong
             person
Strategic investors or
general legal persons
becoming the top 10
shareholders due to          None
allotment of new
shares (if any) (see
Note 3)
Explanation of the
                             1. Shenzhen Energy Corporation holds 100% equity of HONG KONG NAM HOI
above-mentioned
                             (INTERNATIONAL) LTD
shareholders'
                             2. The Company does not know whether the other above-mentioned public
relationship or
                             shareholders are in relationship or are persons in concerted actions
concerted actions
Explanation of the
circumstances in
which the above-
mentioned
                             None
shareholders involve
entrusted voting right
and abstention from
voting right
Special note on the
existence of a special
repurchase account
                             None
among the top 10
shareholders (if any)
(see Note 10)
                       Shareholding status of the top 10 shareholders without selling restrictions
                                                                                                   Type of shares
                             Number of shares without selling restrictions held at the end
 Name of shareholder                                                                           Type of
                                              of the reporting period                                       Quantity
                                                                                                shares
HONG KONG NAM                                                                                 Domesti
HOI                                                                                           c listed     92,123,24
                                                                                92,123,248
(INTERNATIONAL)                                                                               foreign               8
LTD                                                                                           shares
                                                                                              RMB
Shenzhen Guangju                                                                                           73,666,82
                                                                                73,666,824    ordinary
Industrial Co., Ltd.                                                                                                4
                                                                                              shares
Shenzhen Energy                                                                 65,106,130    RMB          65,106,13
                                                           93
                                                     Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


Corporation                                                                        ordinary          0
                                                                                   shares
                                                                                   Domesti
BOCI SECURITIES                                                                    c listed   11,522,04
                                                                     11,522,048
LIMITED                                                                            foreign            8
                                                                                   shares
                                                                                   Domesti
                                                                                   c listed
Zeng Ying                                                              7,159,600              7,159,600
                                                                                   foreign
                                                                                   shares
                                                                                   Domesti
China Merchants
                                                                                   c listed
Securities (Hong                                                       5,330,854              5,330,854
                                                                                   foreign
Kong) Co., Ltd.
                                                                                   shares
                                                                                   RMB
Meiyi Investment Real
                                                                       5,223,200   ordinary   5,223,200
Estate Co., Ltd.
                                                                                   shares
                                                                                   Domesti
LISHERYNZHANMI                                                                     c listed
                                                                       4,005,959              4,005,959
NG                                                                                 foreign
                                                                                   shares
Haitong International                                                              Domesti
Securities Company                                                                 c listed
                                                                       3,908,357              3,908,357
Limited-Account                                                                    foreign
Client                                                                             shares
                                                                                   RMB
Huang Yilong                                                           3,866,500   ordinary   3,866,500
                                                                                   shares
Explanation of
relationship or
concerted action
among the top 10
shareholders of
tradable shares            1. Shenzhen Energy Corporation holds 100% equity of HONG KONG NAM HOI
without selling            (INTERNATIONAL) LTD
restrictions, and          2. The Company does not know whether the other above-mentioned public
between the top 10         shareholders are in relationship or are persons in concerted actions
shareholders of
tradable shares
without selling
restrictions and the top
10 shareholders
Description of the top
                           None
10 ordinary
                                                   94
                                                         Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


 shareholders'
 participation in margin
 trading and securities
 lending business (if
 any) (see Note 4)

The top ten shareholders participating share lending through refinancing

□Applicable  Not applicable

Changes in the top 10 shareholders compared with the previous period

Applicable □ Not applicable

                                                                                                  Unit: share

               Changes in the top 10 shareholders compared with the end of the previous period
                                                                                Number of shares held in
                                        Number of shares lent through     shareholders' general accounts and
                   New/withdraw
                                      refinancing and not yet returned at    credit accounts, and shares lent
   Shareholder      al during the
                                             the end of the period           through refinancing and not yet
 name (full name)     reporting
                                                                            returned at the end of the period
                        period
                                                           Ratio to total                       Ratio to total
                                       Total quantity                       Total quantity
                                                           share capital                        share capital
 Li Baoqin           Withdrawal                                                     3,048,150           0.51%
 LISHERYNZHA
                     New                                                            4,005,959           0.66%
 NMING

Whether the Company's top 10 ordinary shareholders and the top 10 ordinary shareholders without selling
restrictions conducted agreed repurchase transactions during the reporting period

□Yes  No

The the Company's top 10 ordinary shareholders and the top 10 ordinary shareholders without selling
restrictions did not engage in any agreed repurchase transactions during the reporting period.

2. Information on the Company's controlling shareholder

Nature of controlling shareholder: none

Type of controlling shareholders: none

Explanation that the Company has no controlling shareholder

Currently, the Company has no controlling shareholder as defined in the Company Law and Stock Listing Rules.

Changes in controlling shareholders during the reporting period

□Applicable  Not applicable

The Company's controlling shareholder did not change during the reporting period.


                                                       95
                                                                                 Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


3. The Company's actual controller and its persons acting in concert

Nature of actual controller: no actual controller

Type of actual controller: do not exist

Explanation of the fact that the Company has no actual controller

At present, the Company does not meet the criteria for identifying actual controller of a listed company as
stipulated in the Company Law, the Measures for the Administration of Acquisition of Listed Companies and
the Stock Listing Rules.

Whether there are shareholders with a shareholding ratio of more than 10% at the Company's ultimate
controlling level

□Yes No

Changes in actual controller during the reporting period

□Applicable Not applicable

The Company's actual controller did not change during the reporting period.

Block diagram of the Company's property rights and control relationship


   Shenzhen State-owned Assets Supervision                                                   Shenzhen Nanshan District State-owned
       and Administration Commission                                                       Assets Supervision and Management Bureau



                                                                             Shenzhen Shenhuitong Investment Holding
                                                                                            Co., Ltd.

                                                                                                                              Shenzhen Huitong Financial Holdings Fund
                                                                                                                                        Investment Co., Ltd.
                                                                             Shenzhen Kehuitong Investment Holding
                                                                                           Co., Ltd.
   Shenzhen Capital Holdings Co., Ltd.


                                                                                                  Shenzhen Guangju Investment Holdings (Group)
                                                                                                                    Co., Ltd.


                                             Shenzhen Energy (Hong Kong) International
                                                             Limited
                                                                                                    Shenzhen Guangju Energy Co., Ltd.



                                                      HONG KONG NAM HOI
      Shenzhen Energy Corporation                                                                     Shenzhen Guangju Industrial Co., Ltd.
                                                     (INTERNATIONAL) LTD




                                              Shenzhen Nanshan Power Co., Ltd.




Actual controller controls the Company through trust or other asset management methods

□Applicable  Not applicable

4. Cumulative number of pledged shares by the Company's controlling shareholder or largest
shareholder and persons acting in concert accounts for 80% of the Company's shares held by them.

□Applicable  Not applicable



                                                                              96
                                                        Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


5. Other legal person shareholders holding more than 10% of the shares

Applicable       □ Not applicable

                               Legal                                                        Main business or
   Name of legal                                    Date of
                        representative/comp                          Registered capital      management
 person shareholder                              establishment
                           any principal                                                       activities
 HONG KONG
 NAM HOI
                        Kong Guoliang         May 14, 1985          HKD 15.33 million     Investment holdings
 (INTERNATIONA
 L) LTD
                                                                                          Establishing
                                                                                          industries and
 Shenzhen Guangju                                                   RMB 111.11            investing in power
                        Deng Zhenwu           May 31, 1989
 Industrial Co., Ltd.                                               million               (specific projects
                                                                                          will be declared
                                                                                          separately), etc.
                                                                                          Development,
                                                                                          production,
                                                                                          purchase and sale of
                                                                                          various
 Shenzhen Energy                                                                          conventional energy
                        Kong Guoliang         July 15, 1985         RMB 230,971,224
 Corporation                                                                              sources (including
                                                                                          electricity, heat,
                                                                                          coal, oil and gas)
                                                                                          and new energy
                                                                                          sources

6. Shareholding restrictions and reductions of controlling shareholders, actual controllers, reorganizers
and other commitment entities

□Applicable  Not applicable

IV. Specific implementation of share repurchases during the reporting period

Progress of implementation in share repurchase

□Applicable  Not applicable

Implementation progress of reducing repurchased shares in centralized bidding transaction method

□Applicable  Not applicable




                                                      97
                                                        Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                  Section VIII Preferred shares

□Applicable  Not applicable

There were no preferred shares in the Company during the reporting period.




                                                      98
                                        Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                               Section IX Bonds

□Applicable  Not applicable




                                      99
                                               Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                           Section X Financial report




Type of audit opinion                 Unqualified opinion

Signing date of audit report          April 10, 2024

Name of audit agency                  Lixinzhonglian CPAS (Special General Partnership)

Audit Report No.                      LXZLSZ [2024] No.D-0139
Name of certified public
                                      Cao Wei and Zou Yang
accountant

                        (See the attached audit report for details)




                                            100
                                                            Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                                Audit Report

                                                                                      LXZLSZ [2024] No.D-0139



To the Shareholders of Shenzhen Nanshan Power Co., Ltd.,

I. Audit opinions

We have audited the accompanying financial statements of Shenzhen Nanshan Power Co., Ltd. (hereinafter
referred to as Shenzhen Nanshan Power), which comprise the consolidated and parent company's balance sheet
as at December 31, 2023, the consolidated and parent company's income statement, the consolidated and parent
company's statement of cash flows, the consolidated and parent company's statement of changes in shareholders'
equity for the year then ended, and the notes to the financial statements.

In our opinion, the financial statements attached are prepared, in all material respects, in accordance with the
Accounting Standards for Business Enterprises, and present fairly the consolidated and parent company's
financial positions as at December 31, 2023 and the consolidated and parent company's operating results and
cash flows for the year then ended.

II. Basis for Opinion

We conducted our audit in accordance with Auditing Standards for Certified Public Accountants in China. Our
responsibilities under those standards are further described in the "Auditors' Responsibilities for the Audit of the
Financial Statements" of this audit report. According to the Code of Ethics for Certified Public Accountants of
China, we are independent of Shenzhen Nanshan Power, and we have fulfilled other responsibilities in the
aspect of code of ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.

III. Key audit matters

Key audit matters are those matters that, in our professional judgment, are of most significance in our audit of
the financial statements for the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.


Key audit matters                                    How these matters were addressed in the audit

(I) Revenue recognition

For details accounting policies for revenue          The audit procedures related to the recognition of
recognition and analysis of revenue, please          operating revenue include the following procedures:
consolidated    financial   statements   to          1. Evaluating the design and operating effectiveness
accounting policies described in Note                of key internal control related to revenue
(XXV) of "III. Significant accounting                recognition;
policies and accounting estimates" of the            2. For power production and sales revenue, we
Notes to the Consolidated Financial                  obtained and checked the electricity sales contract
                                                         101
                                                     Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


Statements and Note (XXXIX) of "V. Notes        and settlement statements, and confirmed the
to consolidated financial statements".          balance of accounts receivable at the end of the
In 2023, Shenzhen Nanshan Power                 period and the current operating revenue, and
consolidated operating revenue of RMB           confirmed the authenticity of the electricity sales
589,780,190.71, with a decrease of 15.05%       revenue in combination with the post-period
from the previous period.                       accounts receivable;
As operating revenue is one of the              3. For revenue from integrated energy services, we
Company's key performance indicators and        obtained and reviewed the Company's accounting
there is an inherent risk that the time point   policies,     understood     and    evaluated     the
of revenue recognition may be manipulated       management's       method     of   determining    the
to meet specific goals or expectations, we      completion progress, evaluated the rationality of
identified recognition of operating revenue     time point of revenue recognition, and determined
as a key audit matter.                          the rationality of the project completion progress by
                                                checking external evidence such as project
                                                contracts, project delivery, acceptance settlement,
                                                etc., and confirmed the authenticity and
                                                completeness of revenue from integrated energy
                                                services in combination with the confirmation reply
                                                and post-period collection;
                                                4. Performing substantive analysis procedures on
                                                operating revenue and gross margin to determine the
                                                rationality of changes in operating revenue and
                                                gross margin the current period;
                                                5. Performing a cut-off testing on operating revenue
                                                to evaluate whether operating revenue has been
                                                included in the appropriate accounting period.
                                                6. Checking whether information related to
                                                operating revenue has been properly reported in the
                                                financial statements


(II) Asset impairment

Please refer to accounting policies described   Our audit procedures regarding asset impairment
in Note (XX) of "III. Significant accounting    include:
policies and accounting estimates " in the      1. Evaluating and testing the design and
notes to the financial statements.              implementation effectiveness of internal control
As of December 31, 2023, the book value of      related to asset impairment;
inventories, fixed assets and construction in   2. Obtaining accounting policies for asset
progress in consolidated financial statements   impairment, check whether the provision method of
of Shenzhen Nanshan Power totaled RMB           asset impairment complies with regulations, and
661,089,840.61, accounting for 32.26% of        obtain and review the details of provision for asset
the consolidated total assets, which is an      impairment made by the management;
important part of Shenzhen Nanshan Power's      3. Supervising the inventory taking to check the
assets.                                         quantity and status of inventories, and implement
                                                   102
                                                         Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


Shenzhen Nanshan Power's management has            inventory supervision procedures for long-term
evaluated whether there are indications of         assets on sample basis to understand whether the
impairment of the above assets. If                 assets are facing problems such as backward
indications of impairment are identified, the      technology, long-term idleness, and low load rate;
management calculates recoverable amount           4. Using the work of external appraiser experts to
of the individual asset or the asset group to      conduct a comprehensive evaluation of the external
which it belongs, and conducts impairment          appraiser's qualifications, competencies, assessment
test on it by comparing recoverable amount         methods and various parameters used in the
with book value.                                   assessment.
Since      Shenzhen     Nanshan       Power's
management needs to use significant
accounting estimates and judgments when
determining the estimated recoverable
amount of assets, which have significant
affected amount, we determine the asset
impairment loss as a key audit matter.

IV. Other information

Shenzhen Nanshan Power's management (hereinafter referred to as the management) is responsible for other
information. Other information includes information included in the relevant documents constituting the 2023
Annual Report, but excludes the financial statements and our audit report.

Our opinion on the financial statements does not cover the other information and we do not and will not express
any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If we determine, based on the work we have performed, that other information is materially misstated, we
should report that fact. We have nothing to report in this regard.

V. Responsibilities of the Management and Those Charged with Governance for the Financial Statements

The management is responsible for preparing the financial statements in accordance with the requirements of
the Accounting Standards for Business Enterprises to achieve a fair presentation, and for designing,
implementing and maintaining internal control that is necessary to ensure that the financial statements are free
from material misstatements, whether due to frauds or errors.

In preparing the financial statements, the Management is responsible for assessing the Shenzhen Nanshan
Power’s going-concern ability, disclosing the matters related to going concern and using the going-concern
assumption unless the Management either intends to liquidate Shenzhen Nanshan Power or to cease operations,
or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing Shenzhen Nanshan Power's financial reporting
process.

VI. Auditors' Responsibilities for the Audit of the Financial Statements

                                                       103
                                                           Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an audit report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the audit standards will always detect a material misstatement when it exists. Misstatements may arise
from fraud or error and are generally considered material if separate or aggregated misstatements are reasonably
expected to possibly influence the economic decisions made by the users of financial statements on the basis of
these financial statements.

In the process of performing audit work in accordance with the auditing standards, we use professional
judgment and maintain professional skepticism. Meanwhile, we also:

(1) Identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.

(2) Understanding internal control related to the audit in order to design audit procedures that are appropriate in
the circumstances.

(3) Evaluating the appropriateness of accounting policies used by and the reasonableness of accounting
estimates and related disclosures made by the management.

(4) Drawing conclusions on the appropriateness of the management's use of going concern basis. Meanwhile,
according to the audit evidence acquired, the management comes to conclusion on matters which may cause
significant misgiving against the going-concern ability of Shenzhen Nanshan Power or whether the said
situation exists material uncertainty or not. If we conclude that a material uncertainty exists, auditing standards
require us to draw the attention of users of the financial statements to the related disclosures in financial
statements in our audit report; If such disclosures are inadequate, we should modify our opinion. Our
conclusions are based on the information available as of the date of our audit report. However, future events or
conditions may cause Shenzhen Nanshan Power to cease to continue as a going concern.

(5) Evaluating the overall presentation, structure and content of financial statements, and evaluate whether
financial statements fairly reflect relevant transactions and events.

(6) Obtaining sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within Shenzhen Nanshan Power to express an opinion on the financial statements. We are responsible
for directing, supervising and performing group audits and take full responsibility for our audit opinions.

We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that are of
most significance in the audit of the financial statements of the current period and are therefore the key audit

                                                        104
                                                        Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

matters. We describe these matters in our auditor's report, unless these matters are forbidden by laws and
regulations to be disclosed or in extremely rare circumstances, when the negative impact arising from the
reasonable and expected communication about a certain matter in a audit report exceeds the public interest
benefits arising therefrom, we determine that such matter should not be communicated in the auditors' report.



Lixinzhonglian CPAS (Special General Partnership)             Certified Public Accountant of China:Cao Wei

                                                                           (Engagement Partner)



                                                           Certified Public Accountant of China:Zou Yang



                        Tianjin, China                                               April 10, 2024




                                                     105
                                                       Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                         Financial Statements

1. Consolidated Balance Sheet

Prepared by: Shenzhen Nanshan Power Co., Ltd.

                                                                                              Unit: RMB

                          Item                             December 31, 2023          January 1, 2023
 Current assets:
   Monetary funds                                                 316,188,782.49          675,496,266.40
   Balances with clearing companies
   Loans to banks and other financial institutions
   Financial assets held for trading                              226,000,000.00          440,013,571.10
   Derivative financial assets
   Notes receivable
   Accounts receivable                                            111,975,251.10          135,833,492.64
   Receivables financing
   Advances to suppliers                                           26,869,175.59            45,448,287.86
   Premiums receivable
   Reinsurance accounts receivable
   Reinsurance contract reserves receivable
   Other receivables                                               19,233,117.52            18,314,003.84
     Including: interest receivable
      Dividends receivable
   Financial assets purchased under resale
 agreements
   Inventories                                                     86,158,251.16            85,279,298.35
   Contract assets                                                     88,000.00               217,009.58
   Assets held for sale
   Non-current assets maturing within one year
   Other current assets                                            232,865,968.63          188,248,840.44
 Total current assets                                            1,019,378,546.49        1,588,850,770.21
 Non-current assets:
   Disbursement of loans and advances
   Debt investments
   Other debt investments
   Long-term receivables
   Long-term equity investments                                    90,001,176.04            83,496,098.24
   Other investments in equity instruments                        300,615,000.00          300,615,000.00
   Other non-current financial assets
   Investment properties                                            1,664,566.60            1,833,344.20
   Fixed assets                                                   571,482,734.35          591,290,204.31
   Construction in progress                                         3,448,855.10            4,861,062.16
   Productive biological assets
                                                     106
                                                        Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


  Oil and gas assets
  Right-of-use assets                                               2,266,946.42              7,707,617.90
  Intangible assets                                                19,285,629.03            19,799,355.12
  Development expenses
  Goodwill
  Long-term deferred expenses                                       3,891,832.93              1,219,129.18
  Deferred tax assets                                               1,172,366.49              1,172,366.49
  Other non-current assets                                         36,157,735.24              5,371,398.18
Total non-current assets                                        1,029,986,842.20          1,017,365,575.78
Total assets                                                    2,049,365,388.69          2,606,216,345.99
Current liabilities:
  Short-term borrowings                                           341,237,886.72           879,957,857.44
  Borrowing from the central bank
  Loans from banks and other financial institutions
  Financial liabilities held for trading
  Derivative financial liabilities
  Notes payable                                                                            137,298,902.17
  Accounts payable                                                  4,342,166.50              5,227,836.22
  Advances from customers
  Contract liabilities
  Financial assets sold under repurchase
agreements
  Absorption of deposits and interbank deposits
  Receivings from vicariously traded securities
  Receivings from vicariously sold securities
  Employee compensation payable                                    46,238,982.57            29,296,815.07
  Taxes payable                                                     3,089,330.47             5,107,666.73
  Other payables                                                   13,973,447.42            22,997,466.80
    Including: interest payable
    Dividends payable
  Handling charges and commissions payable
  Reinsurance accounts payable
  Liabilities held for sale
  Non-current liabilities maturing within one year                  3,926,326.45              6,014,119.95
  Other current liabilities                                                                      21,600.00
Total current liabilities                                         412,808,140.13          1,085,922,264.38
Non-current liabilities:
  Reserves for insurance contract
  Long-term borrowings                                             58,829,426.30            28,019,758.68
  Bonds payable
    Including: preferred shares
    Perpetual bonds
  Lease liabilities                                                                           2,262,160.03

                                                      107
                                                        Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


   Long-term payables
   Long-term employee compensations payable
   Estimated liabilities                                           15,000,000.00            15,000,000.00
   Deferred income                                                 67,869,348.07            82,145,596.60
   Deferred tax liabilities
   Other non-current liabilities                                  104,045,112.54                47,511.72
 Total non-current liabilities                                    245,743,886.91           127,475,027.03
 Total liabilities                                                658,552,027.04          1,213,397,291.41
 Owners' equity:
   Share capital                                                  602,762,596.00           602,762,596.00
   Other equity instruments
      Including: preferred shares
     Perpetual bonds
   Capital reserves                                               362,770,922.10           362,770,922.10
   Less: treasury shares
   Other comprehensive income                                      -2,500,000.00             -2,500,000.00
   Special reserves
   Surplus reserves                                               332,908,397.60           332,908,397.60
   General risk reserves
   Undistributed profits                                          163,346,776.24           159,187,979.14
 Total of owners' equity attributable to the parent
                                                                1,459,288,691.94          1,455,129,894.84
 company
   Minority interests                                             -68,475,330.29            -62,310,840.26
 Owners' equity                                                 1,390,813,361.65          1,392,819,054.58
 Total Liabilities and owners' equity                           2,049,365,388.69          2,606,216,345.99

Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin
Head of the Finance Department: Lin Xiaojia

2. Parent Company's Balance Sheet

                                                                                              Unit: RMB

                           Item                             December 31, 2023           January 1, 2023
 Current assets:
   Monetary funds                                                   288,209,271.60         652,703,545.21
   Financial assets held for trading                                226,000,000.00         440,013,571.10
   Derivative financial assets
   Notes receivable
   Accounts receivable                                               26,981,407.91          47,995,982.82
   Receivables financing
   Advances to suppliers                                             15,384,546.45          29,715,650.29
   Other receivables                                                714,553,901.02         851,189,111.89
     Including: interest receivable
     Dividends receivable
   Inventories                                                       79,966,182.19          79,504,053.32
                                                      108
                                                       Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


  Contract assets
  Assets held for sale
  Non-current assets maturing within one year
  Other current assets                                              225,282,791.79         180,501,049.31
Total current assets                                              1,576,378,100.96       2,281,622,963.94
Non-current assets:
  Debt investments
  Other debt investments
  Long-term receivables
  Long-term equity investments                                     495,642,748.40         352,171,153.27
  Other investments in equity instruments                          160,615,000.00         160,615,000.00
  Other non-current financial assets
  Investment properties
  Fixed assets                                                     270,785,343.05         279,587,315.87
  Construction in progress                                            2,267,334.95           1,976,173.28
  Productive biological assets
  Oil and gas assets
  Right-of-use assets                                                 2,266,946.42           7,707,617.90
  Intangible assets                                                    159,361.27             193,607.19
  Development expenses
  Goodwill
  Long-term deferred expenses                                          699,249.25            1,106,385.13
  Deferred tax assets
  Other non-current assets                                             857,135.84
Total non-current assets                                            933,293,119.18         803,357,252.64
Total assets                                                      2,509,671,220.14       3,084,980,216.58
Current liabilities:
  Short-term borrowings                                            341,237,886.72         285,705,357.36
  Financial liabilities held for trading
  Derivative financial liabilities
  Notes payable                                                                           737,298,902.17
  Accounts payable                                                     896,652.87           3,759,009.04
  Advances from customers
  Contract liabilities
  Employee compensation payable                                      7,012,680.38          18,905,560.54
  Taxes payable                                                      1,413,720.40           1,203,569.67
  Other payables                                                   203,625,916.75         170,451,537.10
    Including: interest payable
    Dividends payable
  Liabilities held for sale
  Non-current liabilities maturing within one year                    3,926,326.45           6,014,119.95
  Other current liabilities
Total current liabilities                                          558,113,183.57        1,223,338,055.83

                                                     109
                                                        Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


 Non-current liabilities:
   Long-term borrowings                                              58,829,426.30          28,019,758.68
   Bonds payable
     Including: preferred shares
     Perpetual bonds
   Lease liabilities                                                                          2,262,160.03
   Long-term payables
   Long-term employee compensations payable
   Estimated liabilities
   Deferred income                                                   48,280,623.30          48,978,528.78
   Deferred tax liabilities
   Other non-current liabilities
 Total non-current liabilities                                      107,110,049.60           79,260,447.49
 Total liabilities                                                  665,223,233.17        1,302,598,503.32
 Owners' equity:
   Share capital                                                    602,762,596.00         602,762,596.00
   Other equity instruments
      Including: preferred shares
      Perpetual bonds
   Capital reserves                                                 289,963,039.70         289,963,039.70
   Less: treasury shares
   Other comprehensive income
   Special reserves
  Surplus reserves                                                   332,908,397.60         332,908,397.60
  Undistributed profits                                              618,813,953.67         556,747,679.96
 Owners' equity                                                    1,844,447,986.97       1,782,381,713.26
 Total Liabilities and owners' equity                              2,509,671,220.14       3,084,980,216.58

Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin
Head of the Finance Department: Lin Xiaojia

3. Consolidated Income Statement

Unit: RMB

                          Item                                    2023                       2022
 I. Total operating revenue                                         589,780,190.71         694,227,657.28
   Including:     operating revenue                                 589,780,190.71         694,227,657.28
                Interest income
                Premiums earned
                Revenue from handling charges and
 commissions
 II. Total operating costs                                          685,824,056.18         947,345,416.89
    Including: operating costs                                      581,442,543.98         804,679,323.48
                 Interest expenses
                 Expenses from handling charges and
                                                      110
                                                              Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


commissions
                 Surrender deposit
               Net amount of compensation payout
               Net amount withdrawn for insurance
contract reserves
               Policy dividends
                 Reinsurance costs
                 Taxes and surcharges                                       4,799,616.56            5,401,350.20
                 Selling and distribution expenses                          2,831,748.65             375,055.78
                 G&A expenses                                              58,330,596.87          79,099,350.54
                 R&D expenses                                              26,839,912.74          25,647,534.39
                 Financial expenses                                        11,579,637.38          32,142,802.50
                   Including: interest expenses                            18,400,119.58          40,218,036.98
                    Interest income                                         7,358,119.93            8,790,975.96
     Plus: other income                                                    44,505,889.51            9,333,093.72
         Investment income (losses expressed with "-
                                                                           34,997,898.47          70,717,321.61
")
          Including: investment         income       from
                                                                            7,719,627.80            3,635,763.05
associates and joint ventures
                      Gains from derecognition of
financial assets measured at amortized costs
            Exchange gains (losses expressed with "-")
           Net exposure hedging gains (losses
expressed with "-")
           Gains from fair value changes (losses
expressed with "-")
           Losses from credit impairment (losses
                                                                             1,190,348.40          -1,711,964.42
expressed with "-")
           Asset impairment loss (losses expressed
                                                                             -162,985.78           -8,946,433.92
with "-")
           Gains from disposal of assets (losses
                                                                             1,886,136.92            291,985.88
expressed with "-")
III. Operating profit (losses expressed with "-")                          -13,626,577.95       -183,433,756.74
   Plus: non-operating revenue                                              11,687,001.25             39,600.00
   Less: non-operating expenses                                                 66,116.23          2,191,784.23
IV. Total profit (total losses expressed with "-")                          -2,005,692.93       -185,585,940.97
   Less: income tax expenses                                                                         -63,080.11
V. Net profit (net losses expressed with "-")                               -2,005,692.93       -185,522,860.86
   (I) Classification by operations continuity                              -2,005,692.93       -185,522,860.86
   1. Net profit from continued operations (net losses
                                                                            -2,005,692.93       -185,522,860.86
expressed with "-")
   2. Net profit from discontinued operations (net
losses expressed with "-")
   (II) Classification by ownership                                         -2,005,692.93       -185,522,860.86
                                                            111
                                                           Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


   1. Net profit attributable to shareholders of the
                                                                         4,158,797.10        -160,163,240.67
 parent company
   2. Minority interest income                                           -6,164,490.03         -25,359,620.19
 VI. Net of tax of other comprehensive income
    Net of tax of other comprehensive income
 attributable to shareholders of the parent company
       (I) Other comprehensive income that cannot be
 reclassified into profit or loss
      1. Remeasure changes in benefit plans
      2. Other comprehensive income that cannot be
 converted into profit or loss under the equity method
      3. Fair value changes of other investments in
 equity instruments
      4. Fair value changes of the enterprise's own
 credit risk
      5. Others
      (II) Other comprehensive income to be
 reclassified into profit or loss
      1. Other comprehensive income that can be
 converted into profit or loss under the equity method
      2. Fair value changes of other debt investments
      3. Amounts reclassified from financial assets
 into other comprehensive income
      4. Credit loss provisions for other debt
 investments
      5. Cash flows hedging reserve
      6. Difference in translation of foreign-currency
 financial statements
      7. Others
    Net of tax of other comprehensive income
 attributable to minority shareholders
 VII. Total comprehensive income                                         -2,005,692.93       -185,522,860.86
    Total comprehensive income attributable to
                                                                         4,158,797.10        -160,163,240.67
 shareholders of the parent company
 Total comprehensive income attributable to minority
                                                                         -6,164,490.03         -25,359,620.19
 shareholders
 VIII. Earnings per share
       (I) Basic earnings per share                                            0.0069                -0.2657
       (II) Diluted earnings per share                                         0.0069                -0.2657

If a business combination under common control occurs in the current period, the net profit reported by the
combined party before the combination is: RMB X, and the net profit reported by the combined party in the
previous period is: RMB X.


                                                         112
                                                            Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin
Head of the Finance Department: Lin Xiaojia

4. Parent company's income statement

                                                                                                  Unit: RMB

                              Item                                    2023                       2022

 I. Operating revenue
                                                                        391,649,949.09         423,083,901.93

      Less: operating costs
                                                                        363,689,532.32         454,563,835.47

           Taxes and surcharges
                                                                           2,280,457.39           2,377,366.77

           Selling and distribution expenses
                                                                             963,163.50                       -

           G&A expenses                                                  33,986,762.85
                                                                                                25,040,490.15

           R&D expenses
                                                                         13,244,617.52          14,071,545.66
                                                                                     -                       -
           Financial expenses
                                                                         14,764,469.81            7,205,301.51

             Including: interest expenses
                                                                         14,182,249.86          29,858,590.98

             Interest income
                                                                         29,605,337.48          38,552,729.42

      Plus: other income                                                 30,169,947.71
                                                                                                  5,553,834.58
           Investment income (losses expressed with "-
                                                                         32,562,187.79
 ")                                                                                             72,910,517.66
            Including: investment income from
                                                                           6,966,316.30
 associates and joint ventures                                                                    6,208,396.44
                         Income from derecognition of
 financial assets measured at amortized costs (losses
 expressed with "-")
         Net exposure hedging gains (losses expressed
 with "-")
         Gains from fair value changes (losses
 expressed with "-")
         Losses from credit impairment (losses
                                                                           1,105,348.40
 expressed with "-")                                                                                          -
           Asset impairment loss (losses expressed with                                                     -
 "-")                                                                                 -         16,871,485.12
        Gains from disposal of assets (losses
 expressed with "-")                                                       1,749,289.52           -291,564.09

                                                          113
                                                           Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


                                                                                                            -
II. Operating profit (losses expressed with "-")                        57,836,658.74
                                                                                                 4,462,731.58

  Plus: non-operating revenue
                                                                          4,287,730.08             10,000.00

  Less: non-operating expenses
                                                                             58,115.11           1,539,264.83
                                                                                                            -
III. Total profit (total losses expressed with "-")
                                                                        62,066,273.71            5,991,996.41

  Less: income tax expenses
                                                                                                            -
                                                                                                            -
IV. Net profit (net losses expressed with "-")
                                                                        62,066,273.71            5,991,996.41
     (I) Net profit from continued operations (net                                                          -
losses expressed with "-")                                              62,066,273.71            5,991,996.41
     (II) Net profit from discontinued operations (net
losses expressed with "-")
V. Net of tax of other comprehensive income
     (I) Other comprehensive income that cannot be
reclassified into profit or loss
     1. Remeasure changes in benefit plans
     2. Other comprehensive income that cannot be
converted into profit or loss under the equity method
     3. Fair value changes of other investments in
equity instruments
     4. Fair value changes of the enterprise's own
credit risk
     5. Others
     (II) Other comprehensive income to be
reclassified into profit or loss
    1. Other comprehensive income that can be
converted into profit or loss under the equity method
    2. Fair value changes of other debt investments
     3. Amounts reclassified from financial assets
into other comprehensive income
     4. Credit loss provisions for other debt
investments
     5. Cash flows hedging reserve
     6. Difference in translation of foreign-currency
financial statements
     7. Others
                                                                                                            -
VI. Total comprehensive income
                                                                        62,066,273.71            5,991,996.41
VII. Earnings per share
     (I) Basic earnings per share
                                                         114
                                                            Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

                                                                                0.1030                  -0.0099

      (II) Diluted earnings per share
                                                                                0.1030                  -0.0099

Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin
Head of the Finance Department: Lin Xiaojia

5. Consolidated statement of cash flows

                                                                                                  Unit: RMB

                         Item                                         2023                       2022
 I. Cash flows generated from operating activities:
    Cash received from selling goods and providing
                                                                        693,869,206.44         757,303,689.96
 services
   Net increase in customer deposits and inter-bank
 deposits
    Net increase in borrowing from the central bank
    Net increase in borrowings from banks and other
 financial institutions
    Cash received from premiums from original
 insurance contract
    Net cash received from reinsurance business
    Net increase in policyholders' savings and
 investment funds
    Cash collected from interest, handling charges and
 commissions
    Net increase in borrowings from banks and other
 financial institutions
    Net increase in funds from repurchase business
    Net cash received from securities trading agency
    Tax refunds received                                                                       330,262,197.76
    Other cash related to operating activities received                  45,771,867.13          54,083,544.34
    Sub-total of cash inflows from operating activities                 739,641,073.57        1,141,649,432.06
    Cash paid for purchasing goods or receiving
                                                                        661,135,671.43         746,137,912.91
 services
    Increase in loans and advances to customers
    Net increase in central-bank deposits and inter-
 bank deposits
    Cash paid for indemnity payment of original
 insurance contract
   Net increase in lending funds
   Cash paid for interest, handling charges and
 commissions
   Cash paid for policy dividends

                                                          115
                                                          Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


  Cash paid to and for employees                                      110,624,945.12         130,590,587.11
  Various taxes paid                                                   31,928,707.60          31,947,280.10
  Other cash related to operating activities paid                      36,323,726.34          25,805,249.68
Sub-total of cash outflows from operating activities                  840,013,050.49         934,481,029.80
Net cash flows from operating activities                             -100,371,976.92         207,168,402.26
II. Cash flows generated from investing activities:
  Cash received from recovery of investments                          620,010,220.37         120,000,725.39
  Cash received from investment income                                 24,318,744.60          57,197,267.13
   Net cash received from disposal of fixed assets,
                                                                      104,554,420.00           1,337,042.66
intangible assets and other long-term assets
  Net cash received from disposal of subsidiary and
other business institutions
  Other cash related to investing activities received                     344,800.00
  Sub-total of cash inflows from investing activities                 749,228,184.97         178,535,035.18
  Cash paid for purchase and construction of fixed
                                                                       10,145,320.80           3,306,286.80
assets, intangible assets and other long-term assets
  Cash paid for investment                                                                   100,000,000.00
  Net increase in pledge loans
  Net cash paid for acquisition of subsidiary and
other business institutions
  Other cash related to investing activities paid                     446,393,066.79         180,009,000.00
Sub-total of cash outflows from investing activities                  456,538,387.59         283,315,286.80
Net cash flows from investing activities                              292,689,797.38        -104,780,251.62
III. Cash flows generated from financing activities:
   Cash received from investment absorption                                                          199.92
  Including: cash received from absorption of
                                                                                                     199.92
minority investments by subsidiaries
  Cash received from acquisition of borrowings                        421,093,926.90        1,089,969,116.74
  Other cash related to financing activities received
  Sub-total of cash inflows from financing activities                 421,093,926.90        1,089,969,316.66
   Cash paid to repay debt                                            933,281,007.65        1,191,887,723.08
   Cash paid to distribute dividend, profits or repay
                                                                       11,184,721.21          15,047,840.81
interest
   Including: dividends and profits paid to minority
shareholders by subsidiaries
   Other cash related to financing activities paid                      6,314,826.00          27,474,594.34
Sub-total of cash outflows from financing activities                  950,780,554.86        1,234,410,158.23
Net cash flows from financing activities                             -529,686,627.96        -144,440,841.57
IV. The impact of fluctuation in exchange rate on
                                                                           82,055.00             469,729.40
cash and cash equivalents
V. Cash and net increase in cash equivalents                         -337,286,752.50          -41,582,961.53
   Plus: beginning cash and balance of cash
                                                                      648,021,672.06         689,604,633.59
equivalents
VI. Closing cash and balance of cash equivalents                      310,734,919.56         648,021,672.06
                                                        116
                                                           Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report

Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin
Head of the Finance Department: Lin Xiaojia

6. Parent company's statement of cash flows

                                                                                                 Unit: RMB

                          Item                                       2023                       2022
 I. Cash flows generated from operating activities:
    Cash received from selling goods and providing
 services                                                              585,940,800.94         719,471,315.94

   Tax refunds received
                                                                                    -         321,424,443.28

   Other cash related to operating activities received
                                                                       101,359,126.91         266,804,943.28
 Sub-total of cash inflows from operating activities                   687,299,927.85        1,307,700,702.50
    Cash paid for purchasing goods or receiving
 services                                                              466,366,789.52         356,279,013.18

   Cash paid to and for employees
                                                                        66,128,967.09          85,583,891.95

   Various taxes paid
                                                                        16,336,435.27          13,597,429.91

   Other cash related to operating activities paid
                                                                       232,370,081.08          17,608,551.99

 Sub-total of cash outflows from operating activities
                                                                       781,202,272.96         473,068,887.03
                                                                                    -
 Net cash flows from operating activities
                                                                        93,902,345.11         834,631,815.47
 II. Cash flows generated from investing activities:

   Cash received from recovery of investments                          620,010,220.37
                                                                                              110,000,725.39

   Cash received from investment income
                                                                        22,636,345.42          57,194,268.15
    Net cash received from disposal of fixed assets,
 intangible assets and other long-term assets                                4,770.62           1,337,042.66
    Net cash received from disposal of subsidiary and
 other business institutions

   Other cash related to investing activities received
                                                                       126,000,000.00          20,061,163.76

   Sub-total of cash inflows from investing activities
                                                                       768,651,336.41         188,593,199.96
   Cash paid for purchase and construction of fixed
 assets, intangible assets and other long-term assets                    9,955,363.27           1,639,514.07

   Cash paid for investment
                                                                                    -         100,000,000.00

                                                         117
                                                           Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report


   Net cash paid for acquisition of subsidiary and
 other business institutions                                                        -             559,800.08

   Other cash related to investing activities paid
                                                                       464,000,000.00         342,762,500.00

 Sub-total of cash outflows from investing activities                  473,955,363.27
                                                                                              444,961,814.15
                                                                                                           -
 Net cash flows from investing activities
                                                                       294,695,973.14         256,368,614.19
 III. Cash flows generated from financing activities:
   Cash received from investment absorption

   Cash received from acquisition of borrowings
                                                                       421,093,926.90         507,211,616.74

   Other cash related to financing activities received
                                                                                    -          13,000,000.00

 Sub-total of cash inflows from financing activities
                                                                       421,093,926.90         520,211,616.74

   Cash paid to repay debt
                                                                       933,281,007.65        1,011,887,723.08
    Cash paid to distribute dividend, profits or repay
 interest                                                               11,182,322.03          15,044,841.83

   Other cash related to financing activities paid
                                                                        19,898,880.17          39,068,511.01

 Sub-total of cash outflows from financing activities
                                                                       964,362,209.85        1,066,001,075.92
                                                                                    -                      -
 Net cash flows from financing activities
                                                                       543,268,282.95         545,789,459.18
 IV. The impact of fluctuation in exchange rate on
 cash and cash equivalents                                                   1,112.72               3,994.89
                                                                                    -
 V. Cash and net increase in cash equivalents
                                                                       342,473,542.20          32,477,736.99
   Plus: beginning cash and balance of cash
 equivalents                                                           625,228,950.87         592,751,213.88

 VI. Closing cash and balance of cash equivalents
                                                                       282,755,408.67         625,228,950.87

Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin
Head of the Finance Department: Lin Xiaojia




                                                         118
                                                                                                             Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
7. Consolidated statements of changes in owners' equity

The current period amount

Unit: RMB

                                                                                            2023
                                                             Owners' equity attributable to the parent company
                                                                                                                                                 Minori
                                  Other equity instruments         Less: Other Speci             Gener                                                       Owner
         Item                                                                                           Undistri                                    ty
                        Share     Preferr   Perpet         Capital treasu compre    al  Surplus al risk                                                        s'
                                                     Othe                                                buted                 Others   Subtotal interest
                        capital     ed       ual          reserves   ry   hensive reser reserves reserv                                                      equity
                                                      rs                                                profits                                      s
                                  shares    bonds                  shares income ves               es
                                                                                                                     159,18                              -
                        602,76                                  362,77                 -           332,90                               1,455,1               1,392,
I. Closing balance of                                                                                                 7,979.                       62,310
                        2,596.0                                  0,922.           2,500,            8,397.                              29,894.              819,05
the previous year                                                                                                        14                         ,840.2
                              0                                     10            000.00               60                                   84                  4.58
                                                                                                                                                         6
Plus: changes in
accounting policies
     Correction of
prior period errors
     Others
                                                                                                                     159,18                              -
                        602,76                                  362,77                 -           332,90                               1,455,1               1,392,
II. Beginning balance                                                                                                 7,979.                       62,310
                        2,596.0                                  0,922.           2,500,            8,397.                              29,894.              819,05
of the current year                                                                                                      14                         ,840.2
                              0                                     10            000.00               60                                   84                  4.58
                                                                                                                                                         6
III. Changes in the                                                                                                  4,158,7            4,158,79                   -
                                                                                                                       97.10                7.10         -   2,005,6
current period
                                                                                                                                                   6,164,4     92.93
(decreases expressed                                                                                                                                 90.03
with "-")
   (I) Total                                                                                                         4,158,7            4,158,79         -         -
                                                                                                                       97.10                7.10   6,164,4   2,005,6
comprehensive
                                                                                 119
                               Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
income                                                              90.03    92.93
   (II) Owner's
investment and
reductions in capital
1. Ordinary shares
invested by owners
2. Capital invested by
other equity
instruments holders
3. Share-based
payments included in
owners' equity
4. Others
   (III) Profit
distribution
1. Withdrawal of
surplus reserve
2. Withdrawal of
general risk reserve
3. Distributions to
owners (or
shareholders)
4. Others
   (IV) Internal
transfer of owners'
equity
1. Capital reserve
converted into capital
(or share capital)

                         120
                                                                                                        Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
2. Surplus reserve
converted into capital
(or share capital)
3. Surplus reserve to
cover losses
4. Changes in benefit
plans transferred to
retained earnings
5. Other
comprehensive
income transferred to
retained earnings
6. Others
  (V) Special reserve
                                                                                       13,2
                                                                                                                                                        13,270
1. Withdrawal in the                                                                   70,9                                        13,270,
                                                                                                                                                         ,901.6
current period                                                                         01.6                                         901.66
                                                                                                                                                              6
                                                                                          6
                                                                                       13,2
                                                                                                                                                        13,270
2. Usage in the current                                                                70,9                                        13,270,
                                                                                                                                                         ,901.6
period                                                                                 01.6                                         901.66
                                                                                                                                                              6
                                                                                          6
  (VI) Others
                          602,76                            362,77                 -          332,90                                                -   1,390,8
IV. Closing balance in                                                                                          163,346            1,459,28
                          2,596.0                            0,922.           2,500,           8,397.                                         68,475,   13,361.
the current period                                                                                              ,776.24            8,691.94
                                0                               10           000.00               60                                          330.29        65


Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia



                                                                             121
      Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report




122
                                                                                                            Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Amount in previous period

                                                                                                                                                     Unit: RMB

                                                                                               2022
                                                          Owners' equity attributable to the parent company
                                      Other equity
                                                                  Less   Other
                                       instruments                                                          Gen
                                                                    :    compr                    Surplu
          Item                     Pref Perp            Capital                                             eral   Undistri                     Minority    Owners'
                         Share                                    trea   ehensi      Special         s                        Oth
                                   erre etua            reserve                                             risk    buted           Subtotal    interests    equity
                         capital                 Oth              sury     ve       reserves      reserv                      ers
                                    d        l             s                                                rese   profits
                                                  ers             shar   incom                      es
                                   shar bon                                                                 rves
                                                                   es       e
                                    es      ds
                          602,76                         362,77                -                  332,90                                               -
 I. Closing balance of                                                                                             319,351,         1,615,293               1,578,34
                         2,596.0                        0,922.1           2,500,                   8,397.                                       36,951,2
 the previous year                                                                                                  219.81            ,135.51               1,915.44
                               0                              0          000.00                       60                                           20.07
    Plus: changes in
 accounting policies
         Correction of
 prior period errors
        Others
                          602,76                         362,77                -                  332,90                                               -
 II. Beginning balance                                                                                             319,351,         1,615,293               1,578,34
                         2,596.0                        0,922.1           2,500,                   8,397.                                       36,951,2
 of the current year                                                                                                219.81            ,135.51               1,915.44
                               0                              0          000.00                       60                                           20.07
 III. Changes in the
                                                                                                                          -                 -          -    -
 current period
                                                                                                                   160,163,         160,163,2   25,359,6    185,522,
 (decreases expressed
                                                                                                                    240.67              40.67      20.19    860.86
 with "-")
    (I) Total                                                                                                             -                 -          -    -
 comprehensive                                                                                                     160,163,         160,163,2   25,359,6    185,522,

                                                                              123
                               Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
income                                240.67             40.67      20.19   860.86
   (II) Owner's
investment and
reductions in capital
1. Ordinary shares
invested by owners
2. Capital invested by
other equity
instruments holders
3. Share-based
payments included in
owners' equity
4. Others
   (III) Profit
distribution
1. Withdrawal of
surplus reserve
2. Withdrawal of
general risk reserve
3. Distributions to
owners (or
shareholders)
4. Others
   (IV) Internal
transfer of owners'
equity
1. Capital reserve
converted into capital
(or share capital)

                         124
                                                                                                         Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
 2. Surplus reserve
 converted into capital
 (or share capital)
 3. Surplus reserve to
 cover losses
 4. Changes in benefit
 plans transferred to
 retained earnings
 5. Other
 comprehensive
 income transferred to
 retained earnings
 6. Others
    (V) Special reserve
 1. Withdrawal in the                                                              879,946.4                                   879,946.4               879,946.
 current period                                                                            9                                           9               49
 2. Usage in the current                                                           879,946.4                                   879,946.4               879,946.
 period                                                                                    9                                           9               49
   (VI) Others
                            602,76                      362,77                -                332,90         159,187,                             -
 IV. Closing balance in                                                                                                        1,455,129               1,392,81
                           2,596.0                     0,922.1           2,500,                 8,397.         979.14                       62,310,8
 the current period                                                                                                              ,894.84               9,054.58
                                 0                           0          000.00                     60                                          40.26

Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia




                                                                             125
                                                                                                              Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
8. Statement of changes in owner's equity of the parent company

The current period amount

                                                                                                                                                        Unit: RMB

                                                                                             2023
                                           Other equity instruments                                  Other
                                                                                          Less:
                                                                                                    compre                           Undistri
            Item                Share      Preferr   Perpet                 Capital      treasur               Special    Surplus               Other    Owners'
                                                              Other                                  hensiv                           buted
                                capital      ed       ual                  reserves         y                  reserves   reserves                s       equity
                                                                s                                      e                             profits
                                           shares    bonds                               shares
                                                                                                    income

 I. Closing balance of the
                               602,762,5                                  289,963,039.                                    332,908,   556,747            1,782,381
 previous year                                   -        -           -                        -          -           -
                                   96.00                                           70                                      397.60    ,679.96              ,713.26
   Plus: changes in
 accounting policies
        Correction of prior
 period errors
        Others

 II. Beginning balance of
                               602,762,5                                  289,963,039.                                    332,908,   556,747            1,782,381
 the current year                                -        -           -                        -          -           -
                                   96.00                                           70                                      397.60    ,679.96              ,713.26

 III. Changes in the current
                                                                                                                                     62,066,            62,066,27
 period (decreases
                                                                                                                                      273.71                 3.71
 expressed with "-")

    (I) Total comprehensive
                                                                                                                                     62,066,            622,066,2
 income
                                                                                                                                      273.71                73.71
   (II) Owner's investment
                                                                               126
                                     Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
and reductions in capital
1. Ordinary shares invested
by owners
2. Capital invested by other
equity instruments holders
3. Share-based payments
included in owners' equity
4. Others
   (III) Profit distribution
1. Withdrawal of surplus
reserve
2. Distributions to owners
(or shareholders)
3. Others
  (IV) Internal transfer of
owners' equity
1. Capital reserve
converted into capital (or
share capital)
2. Surplus reserve
converted into capital (or
share capital)
3. Surplus reserve to cover
losses
4. Changes in benefit plans
transferred to retained
earnings
5. Other comprehensive
income transferred to

                               127
                                                                                                         Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
 retained earnings
 6. Others
    (V) Special reserve

 1. Withdrawal in the
                                                                                                          7,778,68                               7,778,687
 current period
                                                                                                              7.26                                     .26

 2. Usage in the current
                                                                                                          7,778,68                               7,778,687
 period
                                                                                                              7.26                                     .26
   (VI) Others

 IV. Closing balance in the                                                                                                                      1,844,447
                              602,762,5                                289,963,039.                                  332,908,   618,813
 current period                                  -        -        -                        -        -           -                                 ,986.97
                                  96.00                                         70                                    397.60    ,953.67

Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia




                                                                             128
                                                                                                              Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
Amount in previous period

                                                                                                                                                       Unit: RMB

                                                                                             2022
                                           Other equity instruments                                  Other
                                                                                          Less:
                                                                                                    compre                           Undistr
            Item                Share      Preferr   Perpet                 Capital      treasur               Special    Surplus              Other   Owners'
                                                              Other                                  hensiv                          ibuted
                                capital      ed       ual                  reserves         y                  reserves   reserves               s      equity
                                                                s                                      e                             profits
                                           shares    bonds                               shares
                                                                                                    income

 I. Closing balance of the                                                                                                            562,73
                               602,762,5                                  289,963,039.                                    332,908,                     1,788,373,
 previous year                                   -        -           -                        -          -           -              9,676.3
                                   96.00                                           70                                      397.60                         709.67
                                                                                                                                           7
     Plus: changes in
 accounting policies
           Correction of
 prior period errors
           Others
                                                                                                                                      562,73
 II. Beginning balance of                                                                                                                              1,788,373,
                               602,762,5                                  289,963,039.                                    332,908,   9,676.3
 the current year                                -        -           -                        -          -           -                                   709.67
                                   96.00                                           70                                      397.60          7

 III. Changes in the current                                                                                                               -                    -
 period (decreases                                                                                                                   5,991,9           5,991,996.
 expressed with "-")                                                                                                                   96.41                  41


    (I) Total comprehensive
                                                                                                                                           -                    -
 income
                                                                                                                                     5,991,9           5,991,996.

                                                                               129
                                     Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
                                                             96.41                 41

   (II) Owner's investment
and reductions in capital
1. Ordinary shares invested
by owners
2. Capital invested by other
equity instruments holders
3. Share-based payments
included in owners' equity
4. Others
   (III) Profit distribution
1. Withdrawal of surplus
reserve
2. Distributions to owners
(or shareholders)
3. Others
   (IV) Internal transfer of
owners' equity
1. Capital reserve
converted into capital (or
share capital)
2. Surplus reserve
converted into capital (or
share capital)
3. Surplus reserve to cover
losses
4. Changes in benefit plans
transferred to retained

                               130
                                                                                                         Shenzhen Nanshan Power Co., Ltd. 2023 Annual Report
 earnings
 5. Other comprehensive
 income transferred to
 retained earnings
 6. Others
   (V) Special reserve

 1. Withdrawal in the
                                                                                                          434,489.                               434,489.5
 current period
                                                                                                               58                                        8

 2. Usage in the current
                                                                                                          434,489.                               434,489.5
 period
                                                                                                               58                                        8
   (VI) Others

 IV. Closing balance in the                                                                                                      556,74
                              602,762,5                                289,963,039.                                  332,908,                    1,782,381,
 current period                                  -        -        -                        -        -           -              7,679.9
                                  96.00                                         70                                    397.60                        713.26
                                                                                                                                      6

Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia




                                                                             131
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                        Shenzhen Nanshan Power Co., Ltd.
                      2023 Notes to the Financial statements
          (Unless otherwise specified, the monetary unit is RMB)
I. Basic information of the Company
(I) Company profile
Shenzhen Nanshan Power Co., Ltd. (the Company) was reorganized and established from a
foreign investment enterprise to a joint stock limited company on November 25, 1993, with the
approval of the General Office of the Shenzhen Municipal People's Government under document
SFBF [1993] No. 897.
As approved by the General Office of the Shenzhen Municipal People's Government under
document SZBF [1993] No. 179, the Company issued 40 million RMB ordinary shares and 37
million domestically listed foreign shares to domestic and overseas investors respectively on
January 3, 1994. On July 1, 1994 and November 28, 1994, the RMB ordinary shares (A shares)
and domestically listed foreign shares (B shares) issued by the Company were listed and traded on
Shenzhen Stock Exchange.
The Company's main business is the production and operation of power supply and heating, as
well as technical consultation and technical services related to power plant (station). The
Company's registered address is located at No. 2097 Moon Bay Avenue, Nanshan District,
Shenzhen, Guangdong. The Company's headquarters office is located at 16F/17F, Hantang
Building, Overseas Chinese Town, Nanshan District, Shenzhen, Guangdong.
The financial statements have been approved by the Company's Board of Directors on April 10,
2024.


(II) Scope of financial statements
There are a total of 8 subsidiaries (enterprises) included in the scope of the consolidated financial
statements in the current period, including:
                                                                      Shareholding
                   Subsidiary (enterprise) name                                           Remark
                                                                        ratio %
   Shenzhen Nanshan Power (Zhongshan) Power Co., Ltd.
                                                                                80.00
   (Shenzhen Nanshan Power Zhongshan Company)
   Shenzhen Nanshan Power Gas Turbine Engineering
   Technology (Shenzhen) Co., Ltd. (Shenzhen Nanshan Power                     100.00
   Engineering Company)
   Shenzhen Nanshan Power Environmental Protection
   (Shenzhen) Co., Ltd. (Shenzhen Nanshan Power                                100.00
   Environmental Protection Company)
   Shenzhen Xiefu Energy Co., Ltd. (Xiefu Company)                              50.00
   Shenzhen New Power Industrial Co., Ltd. (New Power
                                                                               100.00
   Company)
   Shennan Energy (Singapore) Co., Ltd. (Shennan Energy
                                                                               100.00
   (Singapore) Company)
   Hong Kong Syndisome Co., Ltd. (Hong Kong Syndisome)                         100.00
   Zhuhai Hengqin Zhuozhi Investment Partnership ( Limited
                                                                                99.96
   Partnership) (Zhuhai Hengqin)


For details on the scope of consolidated financial statements in the current period and its changes,
please refer to Note "VII. Interests in Other Entities".

                             Notes to the Financial statements   Page 1
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements


II. Basis for the preparation of financial statements
The financial statements are prepared in accordance with Accounting Standards for Business
Enterprises - Basic Standards promulgated by the Ministry of Finance and the specific accounting
standards, application guidelines, interpretations and other relevant regulations promulgated and
revised thereafter (collectively referred to as the "Accounting Standards for Business Enterprises").
In addition, the financial statements also disclose relevant financial information in accordance
with the Information Disclosure and Preparation Rules for Companies that Issue Public Offering
of Securities No. 15 - General Provisions on Financial Reports (Revised in 2023.
The financial statements are prepared on a going concern basis. The Company has not found any
factors that would cause significant doubts about its going-concern ability within 12 months from
the end of the reporting period.


III. Important accounting policies and accounting estimates
Based on its actual production and operation characteristics and the provisions of relevant
Accounting Standards for Business Enterprises, the Company has formulated several specific
accounting policies and accounting estimates, which are mainly reflected in the Provision for Bad
Debts of Accounts Receivable (Note III (XI) 6), Inventories (Note III (XII)), Fixed Assets (Note
III (XVI)), Long-term Deferred Expenses (Note III (XXI)), Revenue Recognition and
Measurement (Note III (XXV)), Special Reserves (Note III (XXX)) etc.


(I) Statement on compliance with Accounting Standards for Business Enterprises
The financial statements comply with the requirements of Accounting Standards for Business
Enterprises promulgated by the Ministry of Finance, and truly and completely reflect the
Company's combination and the parent company's financial status as of December 31, 2023, as
well as the Company's combination and the parent company's operating results and cash flows in
2023.


(II) Accounting period
A fiscal year begins on January 1 and ends on December 31 of the Gregorian calendar.


(III) Operating cycle
The Company uses 12 months of the year as its normal operating cycle and uses the operating
cycle as a criterion for classifying the liquidity of its assets and liabilities.


(IV) Recording currency
The Company uses RMB as the recording currency.


(V) Materiality criteria determination method and selection basis


                     Item                                        Materiality criterion
   Significant individual provision for bad
                                               Original book value is greater than RMB 1 million
   debts of accounts receivable
   Significant provision for bad debts of      The amount of individual provision for bad debts
   accounts receivable recovered or            of accounts receivable recovered or reversed

                             Notes to the Financial statements   Page 2
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements

                      Item                                        Materiality criterion
   reversed in the current period               exceeds RMB 1 million

   Write-off of significant accounts            The write-off amount of individual accounts
   receivable                                   receivable exceeds RMB 1 million
                                                The individual amount is greater than RMB 5
   Important construction in progress
                                                million
                                                The individual amount is greater than RMB 5
   Significant estimated liabilities
                                                million


(VI) Accounting treatments for business combinations under common control and not under
common control
For a business combination under common control, the assets and liabilities acquired by the
combining party in a business combination are measured at the book value of the assets and
liabilities of the combined party at the combination date (including goodwill resulting from the
acquisition of the combined party by the ultimate controller) in the consolidated financial
statements of the ultimate controller. The difference between the book value of net assets acquired
in the combination and the book value of the combination consideration paid (or the total nominal
value of shares issued) is adjusted to the equity premium in capital reserve, or to retained earnings
if the equity premium in capital reserve is not sufficient for elimination.
For a business combination not under common control, the assets given, liabilities incurred or
assumed by the purchaser as consideration for the business combination are measured at fair value
at the purchase date, and the difference between the fair value and its book value is recognized in
current profit or loss. Goodwill is recognized if the combination cost is greater than the difference
in the share of fair value of identifiable net assets of the acquiree acquired in the combination;
current profit or loss is recognized if the combination cost is lower than the difference in the share
of fair value of identifiable net assets of the acquiree acquired in the combination.
Costs directly related to business combinations are recognized in current profit or loss as incurred;
transaction costs for the issuance of equity securities or debt securities for business combinations
are presented in the amount initially recognized for equity securities or debt securities.


(VII) Method of preparation for consolidated financial statements
1. Consolidation scope
The consolidation scope of the consolidated financial statements is determined based on control,
and covers the Company and all subsidiaries.
2. Consolidation procedure
The Company prepares consolidated financial statements based on its own financial statements
and those of its subsidiaries' and other relevant information. When the Company prepares
consolidated financial statements, it treats the entire enterprise group as an accounting entity, and
reflects the overall financial status, operating results and cash flows of the enterprise group in
accordance with the recognition, measurement and presentation requirements of relevant
Accounting Standards for Business Enterprises and in accordance with unified accounting policies.
Accounting policies and accounting periods adopted by all subsidiaries included in the
consolidation scope of consolidated financial statements are consistent with those of the Company.
If accounting policies and accounting periods adopted by subsidiaries are inconsistent with those
of the Company, necessary adjustments are made when preparing consolidated financial
statements in accordance with the Company's accounting policies and accounting periods. For a
subsidiary acquired through business combination not under common control, its financial
statements are adjusted based on fair value of identifiable net assets on the purchase date. For a
subsidiary acquired through business combination under common control, adjustments are made

                              Notes to the Financial statements   Page 3
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
to its financial statements based on the book value of its assets and liabilities (including goodwill
resulting from acquisition of the subsidiary by ultimate controller) in the ultimate controller's
financial statements.
The subsidiary's owners' equity, current net profit or loss and current comprehensive income
belonging to minority shareholders are presented under the item of owners' equity in the
consolidated balance sheet, under the item of net profit and under the item of total comprehensive
income in the consolidated income statement, respectively. The balance resulting from the excess
of the minority shareholders' share of the current loss of a subsidiary over the minority's share of
the subsidiary's owners' equity at the beginning of the period is used to offset the minority interests.
(1) Increases in subsidiaries or businesses
If there are increases in subsidiaries or businesses as a result of business combination under
common control during the reporting period, the beginning balance of the consolidated balance
sheet is adjusted; include revenue, expenses and profits of subsidiaries or business combinations
from the beginning of the current period to the end of the reporting period in the consolidated
income statement; include cash flows from the beginning of the period to the end of the reporting
period of subsidiaries or business combinations in the consolidated statement of cash flows, and
adjust the relevant line items in the comparative statements to deem the consolidated reporting
entity to have been in existence since the time point at which the ultimate controller began to
control.
If control can be exercised over an investee under common control as a result of an additional
investment, etc., the parties involved in the combination are deemed to have been adjusted based
on their current status when the ultimate controller began to control. For equity investments held
prior to the acquisition of right of control of the combined party, the relevant profit or loss, other
comprehensive income and other changes in net assets have been recognized between the later of
the combination date of the original equity and the date on which the merging party and the
merged party were under common control and the combination date, whichever is later, and are
offset against the beginning retained earnings or current profit or loss of comparative statements
period.
If there are increases in subsidiaries or businesses as a result of a business combination not under
common control during the reporting period, the beginning balance of the consolidated balance
sheet will not be adjusted; include revenue, expenses and profits of subsidiary or business from the
purchase date to the end of the reporting period in consolidated income statement; include the cash
flows of the subsidiary or business from the purchase date to the end of the reporting period in the
consolidated statement of cash flows.
If the Company can control an investee that is not under common control as a result of additional
investment, etc., the Company remeasures the acquiree's equity interest held prior to the purchase
date at the fair value of the equity interest at the purchase date of the equity interest. The
difference between the fair value and its book value is recognized in current investment income. If
the equity interest in the acquiree held prior to the purchase date is related to other comprehensive
income accounted for under the equity method and other changes in owners' equity other than net
profit or loss, other comprehensive income and profit distribution, the other comprehensive
income and other changes in owners' equity related to them are transferred to investment income
for the period in which they are held at the purchase date, except for other comprehensive income
due to the remeasurement of the investee's net liabilities under defined benefit plans or changes in
net assets.
(2) Disposal of subsidiaries or businesses
① General treatment method
If the Company disposes the subsidiary or business during the reporting period, the revenue,
expenses and profits of the subsidiary or business from the beginning of the period to the date of
disposal are included in the consolidated income statement; cash flows of the subsidiary or
business from the beginning of the period to the date of disposal are included in the consolidated
statement of cash flows.


                              Notes to the Financial statements   Page 4
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
When the Company loses right of control over the investee due to the disposal of part of the equity
investments or other reasons, the Company remeasures the remaining equity investments after the
disposal according to its fair value on the date of loss of control. The difference between the sum
of the consideration received for the disposal of equity interest and the fair value of the remaining
equity interest less the sum of the share of the original subsidiary's net assets continuously
measured from the purchase date or the combination date based on the original shareholding ratio
and goodwill is recognized as investment income in the period in which the loss of control occurs.
Other comprehensive income related to equity investments in subsidiaries or other changes in
owners' equity other than net profit or loss, other comprehensive income and profit distribution are
transferred to investment income in the current period upon loss of control, except for other
comprehensive income due to remeasurement of net liabilities under defined benefit plans or
changes in net assets by the investee.
If the Company's shareholding ratio decreases due to other investors' capital increase in the
subsidiary and the Company loss of control, accounting treatment is carried out in accordance with
the above principles.
① Disposal of subsidiaries in stages
For a disposal of equity investments in subsidiaries through multiple transactions in stages until
the loss of control, it generally indicates that multiple transactions are accounted for as a package
deal if the terms, conditions, and economic effects of each transaction of such disposal of equity
investments in subsidiaries meet one or more of the following circumstances:
i. Such transactions are entered into simultaneously or with consideration of their effects on each
other;
ii. Such transactions can only achieve a complete business result when taken as an entirety;
iii. The occurrence of one transaction depends on the occurrence of at least one other transaction;
iv. A transaction is uneconomical when considered in isolation, but economical when considered
in conjunction with other transactions.
If the transactions that dispose of the equity investments in subsidiaries until of loss of control
belongs to a package deal, the Company account for each transaction as a transaction in which
subsidiary is disposed of and loss of control; however, the difference between the disposal price
and the net asset share of the subsidiary corresponding to the disposal of the investment in each
case prior to the loss of control is recognized in the consolidated financial statements as other
comprehensive income and transferred to current profit or loss in the period in which the loss of
control occurs.
If various transactions involving the disposal of equity investments in subsidiaries until loss of
control do not belong to a package deal, prior to the loss of control, accounting treatment is
performed in accordance with the relevant policies for partial disposal of equity investments in
subsidiary without loss of control; upon loss of control, accounting treatment is performed in
accordance with general method for disposal subsidiary.
(3) Purchase of minority interests in subsidiaries
The difference between the newly acquired long-term equity investments resulting from the
purchase of minority interests and the Company's net asset share of the subsidiaries calculated on
the basis of the ratio of the newly acquired shares in the subsidiaries' net assets on an ongoing
basis from the purchase date (or the combination date) is adjusted to the equity premium in the
capital reserve in the consolidated balance sheet, or to the retained earnings if the equity premium
in the capital reserve is insufficient to offset the difference.
(4) Partially dispose of equity investments in subsidiaries without loss of control
The difference between the disposal price obtained from the partial disposal of long-term equity
investments in subsidiaries without loss of control and the corresponding subsidiaries' net asset
share on a continuing basis from the purchase date (or the combination date) of the long-term
equity investments disposed of is adjusted to the equity premium in the capital reserve in the
consolidated balance sheet, or to the retained earnings if the capital reserve is insufficient to offset

                              Notes to the Financial statements   Page 5
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
the difference.


(VIII) Joint venture arrangements classification and accounting treatments
Joint venture arrangements are divided into joint operations and joint ventures.
When the Company is a joint party to joint venture arrangements, is entitled to the assets and
assumes the liabilities related to the arrangements, it is a joint operation.
The Company confirms the following items related to the interest share in joint operations, and
performs accounting treatments in accordance with the relevant Accounting Standards for
Business Enterprises:
(1) Recognizing assets held separately by the Company and recognizing jointly held assets based
on the Company's share;
(2) Recognizing liabilities borne separately by the Company and recognizing liabilities borne
jointly based on the Company's share;
(3) Recognizing revenue from the sale of the Company's share of joint operations outputs;
(4) Recognizing revenue from joint operations arising from the sale of output based on the
Company's share;
(5) Recognizing expenses incurred independently, and recognizing expenses incurred by joint
operations based on the Company's share.
The Company's accounting policies for investments in joint ventures are set out in Note "III. (XIV)
Long-term Equity Investments".


(IX) Determination criteria for cash and cash equivalents
When preparing the statement of cash flows, the Company's cash on hand and deposits that can be
used for payment at any time are recognized as cash. Investments that meet the four conditions of
short term (due within three months from the purchase date), strong liquidity, easy conversion into
known amounts of cash, and small risk of value changes are determined as cash equivalents.


(X) Foreign currency transactions and translation of foreign currency statements
1. Foreign currency transactions
Foreign currency transactions are recorded using the spot exchange rate at the transaction date as
the translation rate to convert the foreign currency amount into RMB.
The balance of foreign currency monetary items on the balance sheet date is translated at spot
exchange rate on balance sheet date. The resulting exchange differences are recognized in current
profit or loss, except for those arising from foreign-currency special borrowings related to the
acquisition and construction of assets eligible for capitalization, which are treated in accordance
with the principle of capitalization of borrowing costs.
2. Translation of foreign currency financial statements
Assets and liability items in the balance sheet are translated using spot exchange rate on the
balance sheet date; Owners' equity items, except for "undistributed profits", are translated at spot
exchange rate at the time of occurrence. Revenue and expense items in the income statement are
translated at spot exchange rate on the transaction date.
When disposing of an overseas operation, the translation difference of the translation of foreign-
currency financial statements related to the overseas operation is transferred from owners' equity
items to the current profit or loss in the period of disposal.



                             Notes to the Financial statements   Page 6
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(XI) Financial instruments
Financial instruments include financial assets, financial liabilities and equity instruments.
1. Classification of financial instruments
Based on the Company's business model for managing financial assets and the contract cash flows
characteristics of financial assets, financial assets are classified upon initial recognition into:
financial assets measured at amortized costs, financial assets measured at fair value with changes
included in other comprehensive income financial assets (debt instruments) and financial assets
measured at fair value with changes included in current profit or loss.
Financial assets with a business model whose objective is to collect the contract cash flows and
whose contract cash flows consist solely of payments of principal and interest based on the
principal amount outstanding are classified as financial assets measured at amortized costs;
Financial assets with a business model whose objective is both to collect the contract cash flows
and to sell the financial assets and whose contract cash flows consist solely of payments of
principal and interest based on the principal amount outstanding are classified as financial assets at
fair value with changes included in other comprehensive income (debt instruments); other
financial assets beyond these are classified as financial assets measured at fair value with changes
included in current profit or loss.
For investments in non-trading equity instruments, the Company determines upon initial
recognition whether to designate them as financial assets (equity instruments) measured at fair
value with changes included in other comprehensive income.
Financial liabilities are classified upon initial recognition into: financial liabilities measured at fair
value with changes included in current profit or loss and financial liabilities measured at amortized
costs.
Financial liabilities that meet one of the following conditions can be designated upon initial
measurement as financial liabilities measured at fair value with changes included in current profit
or loss:
(1) The designation can eliminate or significantly reduce the accounting mismatch.
(2) Manage and evaluate the performance of the financial liabilities portfolio or the financial
assets and financial liabilities portfolio on a fair value basis in accordance with the enterprise's risk
management or investment strategy as set out in formal written document, and report on this basis
within the enterprise to key officers.
(3) The financial liabilities contain embedded derivatives that are subject to separate spin-off.
2. Recognition basis and measurement method for financial instruments
(1) Financial assets measured at amortized costs
Financial assets measured at amortized costs including notes receivable, accounts receivable, other
receivables, long-term receivables, debt investments, etc., are initially measured at fair value, with
related transaction costs included in the initial recognition amount; accounts receivable that do not
contain significant financing components and accounts receivable that the Company decides not to
consider the financing components of less than one year are initial measurement at the contract
transaction prices.
Interest calculated using the effective interest method during the holding period is included in
current profit or loss.
When financial assets are recovered or disposed of, the difference between the price obtained and
the book value of the financial assets is recorded in current profit or loss.
(2) Financial assets (debt instruments) measured at fair value with changes included in other
comprehensive income
Financial assets (debt instruments) measured at fair value with changes included in other
comprehensive income including receivables financing, other debt investments, etc., are initially
measured at fair value, with related transaction costs included in the initial recognition amount.

                               Notes to the Financial statements   Page 7
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
The subsequent measurement of the financial assets is carried out at fair value, with fair value
changes recognized in other comprehensive income, except for interest calculated using the
effective interest method, impairment losses or gains, and foreign exchange profit or loss.
On derecognition, accumulated gains or losses previously included in other comprehensive
income are transferred out of other comprehensive income and included in current profit or loss.
(3) Financial assets (equity instruments) measured at fair value with changes included in other
comprehensive income
Financial assets (equity instruments) measured at fair value with changes included in other
comprehensive income including other investments in equity instruments, etc., are initially
measured at fair value, with related transaction costs included in the initial recognition amount.
The subsequent measurement of the financial assets is carried out at fair value, with fair value
changes included in other comprehensive income. Dividend received are included in current profit
or loss.
On derecognition, accumulated gains or losses previously included in other comprehensive
income are transferred out of other comprehensive income and included in retained earnings.
(4) Financial assets measured at fair value with changes included in current profit or loss
Financial assets measured at fair value with changes included in current profit or loss including
financial assets held for trading, derivative financial assets, other non-current financial assets, etc.,
are initially measured at fair value, with related transaction costs included in current profit or loss.
The subsequent measurement of the financial assets is carried out at fair value, with fair value
changes included in current profit or loss.
(5) Financial liabilities measured at fair value with changes included in current profit or loss
Financial liabilities measured fair value with changes included in current profit or loss including
financial liabilities held for trading, derivative financial liabilities, etc., are initially measured at
fair value, with related transaction costs included in current profit or loss. The subsequent
measurement of the financial liabilities is carried out at fair value, with fair value changes
included in current profit or loss.
On derecognition, the difference between the book value and the consideration paid is included in
current profit or loss.
(6) Financial liabilities measured at amortized costs
Financial liabilities measured at amortized costs including short-term borrowings, notes payable,
accounts payable, other payables, long-term borrowings, bonds payable, and long-term payables,
are initially measured at fair value, with related transaction costs included in the initial recognition
amount.
Interest calculated using the effective interest method during the holding period is included in
current profit or loss.
On derecognition, the difference between the consideration paid and the book value of the
financial liabilities is included in current profit or loss.
3. Recognition basis and measurement method for transfer of financial assets
The Company assesses the extent to which it retains the risks and rewards of ownership of
financial assets when a transfer of financial assets occurs and treats them as follows, respectively:
(1) If substantially all the risks and rewards of ownership of financial assets are transferred, the
financial assets are derecognized, and rights and obligations arising from or retained in the transfer
are recognized separately as assets or liabilities.
(2) If substantially all the risks and rewards of ownership of financial assets are retained, the
financial assets continue to be recognized.
(3) If the Company neither transfers nor retains substantially all risks and rewards of ownership
financial assets (i.e., in cases other than those in (1) and (2) of this Article), it treats the financial

                               Notes to the Financial statements   Page 8
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
assets, according to whether or not it retains control over the financial asset, respectively as
follows:
1) If control over the financial assets is not retained, the financial assets are derecognized and the
rights and obligations arising from or retained in the transfer are recognized separately as assets or
liabilities.
2) If control of financial assets is retained, the financial assets continue to be recognized to the
extent of continued involvement in the transferred financial assets, and related liabilities are
recognized accordingly. The extent of continued involvement in the transferred financial assets is
the extent to which the Company bears the risk or rewards of changes in the value of the
transferred financial assets.
In determining whether the transfer of financial assets satisfies the above conditions for
derecognition of financial assets, the principle of substance over form is applied. The Company
distinguishes between transfer of financial assets in their entirety and partial transfer of financial
assets.
(1) When the financial assets are transferred in their entirety to satisfy the conditions for
derecognition, the difference between the following two amounts is recognized in current profit or
loss:
1) The book value of transferred financial assets on the derecognition date.
2) The sum of the consideration received for the transfer of the financial assets and the amount
corresponding to the derecognized part of the cumulative fair value changes included directly in
other comprehensive income (the financial assets involved in the transfer are financial assets at
fair value with changes included in other comprehensive income).
(2) If financial assets are partially transferred and the transferred part as a whole meets conditions
for derecognition, the book value of the entire financial assets before the transfer is divided
between the derecognized part and the continued recognition part (in this case, the retained service
assets are deemed to continue to be recognized as part of financial assets) are amortized according
to their respective relative fair values on the transfer date , and the difference between the
following two amounts is included in current profit or loss:
1) The book value of derecognized part on the derecognition date.
2) The sum of the consideration received for the derecognized part and the amount corresponding
to the derecognized part of the cumulative amount of fair value changes originally included in
other comprehensive income (the financial assets involved in the transfer are financial assets at
fair value with changes included in other comprehensive income).
If the transfer of financial assets does not satisfy the conditions for derecognition, the financial
assets continue to be recognized and the consideration received is recognized as financial
liabilities.
4. Conditions for derecognition of financial liabilities
If the current obligations for financial liabilities are fully or partially discharged, the financial
liabilities, or a part thereof, are derecognized; if the Company enters into an agreement with a
creditor to replace the existing financial liabilities by assuming new financial liabilities, and the
contractual terms of the new financial liabilities are substantially different from those of the
existing financial liabilities, the existing financial liabilities are derecognized and the new
financial liabilities are recognized simultaneously.
If all or part of the contractual terms of the existing financial liabilities are substantially modified,
the existing financial liabilities or a part thereof are derecognized, and the modified financial
liabilities are recognized as new financial liabilities.
When financial liabilities are fully or partially derecognized, the difference between the book
value of the derecognized financial liabilities and the consideration paid (including non-cash
assets transferred out or new financial liabilities assumed) is recognized in current profit or loss.
If the Company repurchases part of financial liabilities, it allocates the overall book value of the

                               Notes to the Financial statements   Page 9
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
financial liabilities based on the relative fair values of the continued recognition part and
derecognized part on the repurchase date. The difference between the book value allocated to the
derecognized part and the consideration paid (including non-cash assets transferred out or new
financial liabilities assumed) is recognized in current profit or loss.
5. Methods for determining fair values of financial assets and financial liabilities
For financial instruments that have an active market, their fair values are determined based on the
quoted price in the active market. For financial instruments that do not have active market, their
fair values are determined by valuation techniques. In valuing the fair value, the Company uses
valuation techniques that are applicable in the current circumstances and are supported by
sufficient available data and other information, selects inputs that are consistent with the
characteristics of the assets or liabilities that would be considered by a market participant in a
transaction for the underlying assets or liabilities, and prioritizes the use of relevant observable
inputs. Non-observable inputs are used only when relevant observable inputs are not available or
not practicable to obtain.
6. Impairment of financial assets
The Company estimates expected credit losses on financial assets measured at amortized costs and
financial assets measured at fair value with changes included in other comprehensive income (debt
instruments), either individually or in combination, taking into account all reasonable and
supportable information including forward-looking information. The measurement of expected
credit losses depends on whether a significant increase in credit risk has occurred in the financial
assets since initial recognition.
The Company uses a simplified measurement method to measure loss provisions based on
expected credit losses over the entire life of all notes receivable, contract assets, accounts
receivable and lease receivables generated from daily operating activities such as sales of goods
and provision of services that are regulated by the revenue standard; for notes receivable,
receivables financing and other receivables classified as portfolio other than these, the Company
calculates expected credit losses by reference to historical credit loss experience, current
conditions, and projections of future economic conditions by using default risk exposures, and
expected credit loss over the life of the instruments rate within the next 12 months or over the
entire duration.
In addition to the above-mentioned simplified measurement methods and various other receivables
and temporary payments other than purchased or originated credit loss, the Company evaluates on
balance sheet date whether credit risk of relevant financial instruments has increased significantly
since the initial recognition, measures its provision for losses and recognizes expected credit
losses and changes therein, respectively.
(1) Recognition criteria and methods for provision for provision for bad debts of accounts
receivable with significant individual provision and single provision for bad debts
The Company conducts separate impairment test on accounts receivable with significant
individual amounts, and conducts separate impairment test on financial assets that have not been
impaired and includes them in financial assets portfolio with similar credit risk characteristics.
Accounts receivable for which impairment losses are recognized in individual test are no longer
included in the portfolio of accounts receivable with similar credit risk characteristics for
impairment testing.
(2) Accounts receivable with individually insignificant amount but individual provision for bad
debts
For accounts receivable whose individual amounts are not significant but have the following
characteristics, such as: accounts receivable that are in dispute with the other party or involved in
litigation or arbitration; The debtor fails to be contacted and there is no third-party pursuer; The
accounts receivable that have obvious signs that the debtor is likely to be unable to fulfill its
repayment obligations shall be subject to a separate impairment test. If any object evidence
proving the existence of impairment, impairment loss is recognized and provision for impairment
is made at the difference between present value of future cash flows and their book value.

                             Notes to the Financial statements   Page 10
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(3) Determination basis and calculation method of accounts receivable whose expected credit
losses are calculated based on credit risk portfolio
When sufficient evidence of expected credit losses cannot be assessed at a reasonable cost at the
individual instrument level, the Company divides notes receivable, accounts receivable, other
receivables, and contract assets into portfolios based on credit risk characteristics by referring to
historical credit loss experience, taking into account current conditions as well as judgments of
future economic conditions, and calculates expected credit losses on a portfolio basis.

   Name of portfolio                        Basis for determining the portfolio
 Portfolio I               Portfolio of bank acceptance bills
 Portfolio II              Receivables from power production and sales
 Portfolio III             Integrated energy service receivables
                           Consolidated accounts receivable from related parties, other
 Portfolio IV
                           receivables and contract asset portfolios
 Portfolio V               Margin, security deposit and petty cash portfolio
                           Export tax rebate, VAT refunded upon collection and other tax
 Portfolio VI
                           portfolios
                           Other receivables and temporary payments other than the above
 Portfolio VII
                           portfolios


(XII) Inventories
1. Classification of inventories
The Company's main business is the power production and sale of power. The Company's
inventories mainly consist of materials and supplies consumed in the course of production or
rendering of services, mainly including fuel, raw materials, spare parts and maintenance
equipment, etc.
2. Valuation method for dispatched inventories
Inventories are initially measured at the cost when acquired, but measured at weighted average
method when dispatched.
3. Basis for determining net realizable value of different categories of inventories
For goods inventories for direct sale, including finished products, stock commodities and materials
for sale, their net realizable values shall be recognized at the estimated selling prices minus the
estimated selling and distribution expenses and the relevant taxes and surcharges in the course of
normal production and operation; For material inventories required for process, in the course of
normal production and operation, their net realizable values are recognized at the estimated selling
prices of finished products minus estimated costs until completion, selling and distribution
expenses and relevant taxes and surcharges; For inventories held to execute sales contract or
service contract, their net realizable values are calculated on the basis of contract price. If the
quantities of inventories specified in sales contracts are less than the quantities held by the
Company, the net realizable value of the excess portion of inventories shall be based on general
selling prices.
Provision for inventory depreciation will be made at the end of the period on an individual basis.
However, for inventories with large quantities and low unit prices, provision for inventory
depreciation are made according to the category of inventories; For the inventories related to the
series of products manufactured and sold in the same area, and of which the final use or purpose is
identical or similar thereto, and if it is difficult to measure them by separating them from other
items, the provision for inventory depreciation reserve shall be made on a consolidation basis.
When making provision for inventory depreciation, if the factors causing any write-down of

                             Notes to the Financial statements   Page 11
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
inventory value have disappeared, leading to the net realizable values of inventories higher than its
book value, the amount of write-down shall be reversed from the original provision for inventory
depreciation with the reversal being included in the current profit or loss.
4. Inventory system
The perpetual inventory system is adopted.
5. Amortization method for low-value consumables and packaging materials
(1) Low-value consumables are amortized at lump-sum method.
(2) Packaging materials are amortized at lump-sum method.


(XIII) Contract assets
If the Company has transferred the goods to the customer and has the right to receive
consideration, and the right depends on factors other than the passage of time, it is recognized as
contract assets. The Company's unconditional (i.e., subject only to the passage of time) right to
receive consideration from customers is presented separately as accounts receivable.
See Note III.(XI) 6. Impairment of financial assets, for the Company's determination method and
accounting treatment for the expected credit losses of contract assets.


(XIV) Long-term equity investments
1. Judgment criteria for common control and significant influence
Common control refers to the mutual control over certain arrangement based on relevant
agreements, however, activities related to such arrangement can be decided only when the
consensus of the participating party sharing the right of control is obtained. Where the Company
exercises common control over the investees together with other parties to the joint ventures and
enjoys the right on the investee's net assets, the investee is a joint venture of the Company.
Significant influence refers to the power to participate in making decisions on the financial and
operating policies of an enterprise, but not the power to control, or jointly control, the formulation
of such policies with other parties. If the Company can exert significant influence on investees,
investees shall be associates of the Company.
2. Determination of initial investment cost
(1) Long-term equity investments formed by business combination
Business combination under common control: if the Company pays cash, transfers non-cash assets
or assumes debts, and issues equity securities as the combination consideration, the share of book
value of acquiring the owners' equity of the combined party in the ultimate controller's
consolidated financial statements is taken as the initial investment cost of long-term equity
investments on the combination date. In case the Company can exercise control over the investee
under common control for additional investments or other reasons, the initial investment cost of
long-term equity investments should be recognized at the share of book value of net asset of the
combined party after the combination in the consolidated financial statements of the ultimate
controller on the combination date. If there is a difference between the initial investment cost of
the long-term equity investments on the combination date and the sum of the book value of the
long-term equity investments before combination and the book value of the consideration newly
paid by shares acquired on the combination date, the difference shall be used to adjust the equity
premium; and if the equity premium is insufficient to be offset, retained earnings shall be offset.
Business combination not under common control: the Company shall use the combination cost
determined on the purchase date as the initial investment cost of long-term equity investments. If
it is possible to exercise control investees that is not under common control due to additional
investment or other reasons, the sum of the book value of the original equity investments plus the
cost of the new investment will be used as initial investment cost accounted under the cost method.

                             Notes to the Financial statements   Page 12
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(2) Long-term equity investments obtained through other means
For long-term equity investments acquired from cash payment, the initial investment cost is the
actually paid purchasing cost.
For the long-term equity investments acquired by issuing equity securities, the initial investment
cost is the fair value of the issued equity securities.
On the premise that exchange of non-monetary assets is of commercial nature and the fair value of
the asset traded in and out can be measured reliably, the initial investment cost of long-term equity
investments traded in with non-monetary asset should be determined according to the fair value of
the asset traded out and relevant taxes and surcharges payable, unless any concrete evidence
indicates that the fair value of the asset traded in is more reliable; For exchange of non-monetary
assets that do not meet the above premise, the book value of the asset traded out and relevant taxes
and surcharges payable should be recognized as the initial investment cost of the long-term equity
investments traded.
For long-term equity investments obtained through debt restructuring, its book value is determined
by the fair value of the abandoned creditor's right and the other taxes directly attributable to the
assets, and the difference between the fair value of the abandoned creditor's right and the book
value is included into the current profit or loss.
3. Subsequent measurements and recognition of profit or loss
(1) Long-term equity investments accounted for under the cost method
The Company's long-term equity investments in subsidiary is accounted for under the cost method.
Except for the actual price paid for acquisition of investment or the cash dividends or profits
contained in the consideration which have been declared but not yet distributed, the Company
recognizes the investment income in the current period at the cash dividends or profits declared by
the investee.
(2) Long-term equity investments accounted for under the equity method
Long-term equity investments in associates and joint ventures are accounted for under the equity
method. If the initial investment cost is in excess of the share of fair value of identifiable net assets
in the investee when the investment is made, the difference will not be adjusted to the initial
investment cost of long-term equity investments; if the initial investment cost is in short of the
share of fair value of identifiable net assets in the investee when the investment is made, the
difference will be included in the current profit or loss.
The Company should recognize the investment income and other comprehensive income
respectively in accordance with its share of net profit or loss and other comprehensive income
realized by the investees that it should enjoy or share, and adjust the book value of long-term
equity investments; The book value of long-term equity investments will be reduced accordingly
in the light of the profits or cash dividends that the investee declares to distribute; For other
changes in the owners' equity of investees other than net profit or loss, other comprehensive
income and profit distribution, the book value of long-term equity investments is adjusted and
included in owners' equity.
When confirming the shares of net profit or loss of the investee which the Company shall enjoy,
based on the fair value of the identifiable net assets of the investee at the time of acquisition of the
investment, the Company confirms the net profit of the investee after adjustment in accordance
with the Company's accounting policies and the accounting period. During the period when the
investment is held, if the investees prepares consolidated financial statements, the accounting shall
be made based on the amount attributable to investees in net profit, other comprehensive income
and other changes in owners' equity in the consolidated financial statements.
When the Company recognizes the losses of investees that it should share, it shall proceed in the
following order: Firstly, reduce book value of long-term equity investments. Secondly, if the book
value of long-term equity investments is not sufficient to offset it, the investment losses will
continue to be recognized to the extent of book value of other long-term interests that essentially
constitute a net investment of the investees, to offset the book value of long-term receivables, etc.

                              Notes to the Financial statements   Page 13
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Finally, after the above processing, if the enterprise still bears additional obligations according to
the investment contract or agreement, the estimated liabilities will be recognized based on the
estimated obligations and included in the current investment losses.
(3) Disposal of long-term equity investments
When disposing of long-term equity investments, the difference between the book value and the
actual price obtained shall be included in the current profit or loss.
When disposing of long-term equity investments accounted for under the equity method, the
portion originally included in other comprehensive income will be accounted for in a
corresponding ratio on the same basis as the investees' direct disposal of relevant assets or
liabilities. The owners' equity recognized due to the changes in owners' equity other than net profit
or loss, other comprehensive income, and profit distribution shall be carried forward to the current
profit or loss on a proportional basis, except for other comprehensive income arising from the
investee's remeasurement of changes in net liabilities or net assets under the defined benefit plans.
If common control or significant influence on investees is lost due to the disposal of part equity
investments or other reasons, the remaining equity after disposal shall be calculated in accordance
with recognition and measurement standards of financial instruments. The difference between its
fair value and book value at the date of loss of common control or significant influence is
recognized in the current profit or loss. For other comprehensive income recognized due to the
original equity investments accounted for under the equity method, it shall be accounted for on the
same basis as the investees' direct disposal of relevant assets or liabilities when the accounting for
equity method is no longer adopted. The owners' equity recognized due to other changes in
owners' equity of the investee other than net profit or loss, other comprehensive income and profit
distribution will all be transferred to the current profit and loss when accounted for under the
equity method is terminated.
If the Company loses right of control over investees due to the disposal of part of equity
investments or increase in capital of the subsidiary by other investors, resulting in a decrease in the
Company's shareholding ratio, when preparing individual financial statements, if the remaining
equity can exercise common control or significant influence over investees, it shall be accounted
by under equity method, which shall be deemed to be adjusted under the equity method since the
time of acquisition. If the remaining equity cannot common control or exert significant influence
on investees, it shall be accounted for in accordance with the relevant provisions of recognition
and measurement standards of financial instruments, and the difference between its fair value and
book value on the date of loss of control shall be included in the current profit or loss.
Where the equity disposed of are acquired through business combination as a result of additional
investment and other reasons, if the remaining equities after disposal are calculated under the cost
method or equity method upon preparation of separate financial statements, other comprehensive
income and other owners' equity recognized in equity investments held before the purchase date as
a result of accounting under equity method shall be carried forward pro rata; If the remaining
equity after disposal is accounted for in accordance with recognition and measurement standards
of financial instruments, other comprehensive income and other owners' equity will be carried
forward.


(XV) Investment properties
The investment properties refer to the properties held for earning rentals or/and capital
appreciation, including leased land use right, land use right held for transfer upon appreciation,
and leased building (including self-built buildings or buildings developed for renting or buildings
under construction or development for future renting).
The Company measures its existing investment properties under the cost model. For investment
properties measured under the cost model - in terms of buildings for renting, the same depreciation
policy as that for fixed assets of the Company is adopted; for land use rights for renting, the same
amortization policy as that for intangible assets is adopted.


                             Notes to the Financial statements   Page 14
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(XVI) Fixed assets
1. Recognition conditions of fixed assets
Fixed assets refer to the tangible assets of the Company held for the purpose of producing
commodities, rendering services, renting or business management with service life exceeding one
accounting year. Fixed assets are recognized when the following conditions are met at the same
time:
(1) It is very likely that the economic benefits associated with the fixed assets will flow into the
enterprise;
(2) The cost of the fixed assets can be measured reliably.
2. Depreciation method
The Company provides the depreciation based on the production method within its service life
after deducting estimated net residual value and accumulated provision for impairment from the
cost of gas turbine generator unit; Other fixed assets are depreciated under straight-line method
over their service life based on their costs less estimated net residual value and accumulated
provision for impairment.
If service life of the various components of fixed assets are different or they provide economic
benefits to the enterprise in different ways, different depreciation rates or depreciation method
should be selected and depreciation should be accrued separately.
The depreciation method, depreciation life, residual rate and annual depreciation rate of fixed
assets are as follows:
                                                                                         Annual
                                       Depreciati     Depreciation          Residual
                Category                                                               depreciation
                                       on method       life (years)         rate(%)
                                                                                         rate (%)
                                       Straight-
      Houses and buildings                line               20 years             10             4.5
                                        method
      Machinery equipment gas          Workload
                                                                                  10
      turbine generator unit            method
      Machinery equipment              Straight-
      (except for gas turbine             line            15-20 years             10           4.5-6
      generator unit)                   method
                                       Straight-
      Means of transport                  line                   5 years          10              18
                                        method
                                       Straight-
      Others                              line                   5 years          10              18
                                        method
3. Subsequent expenditure
Subsequent expenditures on fixed assets refer to renovation and reconstruction expenses, repair
costs, etc. incurred during the use of fixed assets. Subsequent expenditures such as the renewal
and transformation of fixed assets, if they meet the conditions for capitalization, shall be included
in the cost of fixed assets, and book value of the replaced part shall be deducted; The repair costs
of fixed assets that do not meet the conditions for capitalization are included in the current profit
or loss when incurred.


(XVII) Construction in progress
The Company's construction in progress are classified into infrastructure projects, technical
transformation projects, integrated energy service, information construction, etc.
The initial book values of the fixed assets are stated at necessary expenditures incurred before

                             Notes to the Financial statements    Page 15
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
construction in progress reaches the working conditions for its intended use. For construction in
progress that has reached working conditions for its intended use but for which the completion of
settlement has not been handled, it shall be transferred into fixed assets at the estimated value
according to the project budget, construction price, actual cost, etc. from the date when it reaches
the working conditions for its intended use. And the fixed assets shall be depreciated in
accordance with the Company’s policy on depreciation of fixed assets. Adjustment shall be made
to the originally and provisionally estimated value based on the actual cost after the completion of
settlement is handled, but depreciation provided will not be adjusted.
The standards for construction in progress to be transferred to fixed assets when they reach the
condition for its intended use are as follows:

        Item                        Criteria and time point for transfer to fixed assets
                        (1) The main construction project and supporting projects have been
                        substantially completed; (2) When the construction project meets the
                        requirements for predetermined design, it must be accepted by the survey,
                        design, construction, supervision and other entities; (3) Acceptance by
Houses and              external departments such as fire protection department, state-owned land
buildings               department and planning department, etc.; (4) If a construction project has
                        reached the intended usable state but has not yet completed the final
                        settlement, it shall be transferred to fixed assets at an estimated value
                        based on the actual cost of the project from the date on which it reaches
                        the intended usable state.
                        (1) Relevant equipment and other supporting facilities have been installed;
                        (2) The equipment can maintain normal and stable operation for a period
Machinery
                        of time after debugging; (3) The production equipment can stably produce
equipment
                        qualified products over a period of time; (4) The equipment has been
                        inspected and accepted by asset managers and users.


(XVIII) Borrowing costs
1. Recognition principles for capitalization of borrowing costs
The borrowing costs include borrowing interest, amortization of discounts or premiums, auxiliary
expenses, and exchange differences arising from foreign currency borrowings, etc.
The borrowing costs incurred by the company that can be directly attributed to the purchase,
construction or production of assets that meet the capitalization conditions shall be capitalized and
included in the cost of the related assets; Other borrowing costs are recognized as expenses based
on the amount incurred when incurred and included in the current profit or loss.
Assets eligible for capitalization refer to fixed assets, investment properties, inventories and other
assets which may reach their intended use or sale status only after long-time acquisition and
construction or production activities.
Capitalization of borrowing costs begins when the following conditions are met at the same time:
(1) Asset expenditures having occurred. Asset expenditures include expenditures in the form of
cash payments, transfers of non-cash assets or interest-bearing debts for the acquisition,
construction or production of assets that meet capitalization conditions;
(2) Borrowing costs having been incurred;
(3) The purchase, construction or production activities necessary to bring the asset to its intended
usable or salable state having begun.
2. Period of capitalization of borrowing costs
The capitalization period refers to the period from the time point at which capitalization of
borrowing costs commences to the time point at which capitalization ceases, excluding the period
during which capitalization of borrowing costs is suspended.

                             Notes to the Financial statements   Page 16
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
When the acquisition, construction or production of assets that meet the capitalization conditions
reaches the intended usable or salable state, the capitalization of borrowing costs ceases.
When part of the projects in the acquisition, construction or production of assets that meet the
capitalization conditions are completed and can be used independently, the capitalization of
borrowing costs of this part of the assets ceases.
If each part of an asset purchased, constructed or produced is completed separately, but it cannot
be used or sold until the entirety is completed, capitalization of borrowing costs stops when the
entire asset is completed.
3. Capitalization suspension period
If an asset that meets the capitalization conditions is abnormally interrupted during the acquisition,
construction or production process, and the interruption lasts for more than 3 months, the
capitalization of borrowing costs is suspended; if the interruption is a necessary procedure for the
acquired, constructed or produced assets that meet the capitalization conditions to reach the
intended usable or salable state, the capitalization of borrowing costs continues. Borrowing costs
incurred during the interruption period are recognized as current profit or loss, and the
capitalization of borrowing costs continues until the acquisition, construction or production
activities of the assets restart.
4. Calculation method for capitalization of borrowing costs rate and capitalization amount
For special borrowings for the purpose of purchasing, constructing or producing assets eligible for
capitalization, the capitalization amount of borrowing costs is determined by the actual borrowing
costs incurred in the period of the special borrowing, less the amount of interest income earned on
the unused borrowed funds deposited in the bank or investment income earned on the temporary
investment.
For general borrowings taken up for the acquisition or production of assets eligible for
capitalization, the amount of borrowing costs to be capitalized is determined by multiplying
weighted average of the asset expenditures that exceed special borrowings by the capitalization
rate of the general borrowings general borrowings used. The capitalization rate is calculated and
determined based on the weighted average interest rate of general borrowings.


(XIX) Intangible assets
Intangible assets including land use right, patented technology, software, etc., are initially
measured at actual cost.
1. Valuation method of intangible assets
(1) The Company initially measures intangible assets at cost when acquiring them;
The cost of outsourced intangible assets includes the purchase price, relevant taxes and other
expenses directly attributable to bringing the assets to the intended use. If the purchase price of
intangible assets is deferred beyond normal credit conditions and is essentially financing in nature,
the cost of intangible assets is determined based on the present value of the purchase price.
The book value of intangible assets acquired in a debt restructuring for use by the debtor against a
debt are determined based on the fair value of the claim waived and other costs directly
attributable to bringing the asset to its intended use, such as taxes, and the difference between the
fair value of the claim waived and the book value of the intangible assets is recognized in current
profit or loss.
Provided that the exchange of non-monetary assets has commercial substance and the fair value of
both the assets exchanged in and the assets exchanged out can be measured reliably, the intangible
assets exchanged in by exchange of non-monetary assets are recorded at their fair value based on
the fair value of the assets exchanged out, unless there is conclusive evidence that the fair value of
the assets exchanged in is more reliable; For exchange of non-monetary assets that do not meet the
above prerequisites, the book value of the exchanged assets and related taxes payable are
recognized as the cost of the intangible assets exchanged, and profit or loss is derecognized.

                             Notes to the Financial statements   Page 17
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(2) Subsequent measurement
Analyze and determine service life of intangible assets when acquiring them.
For intangible assets with limited service life, they are amortized on straight-line method within
the period that they bring economic benefits to the enterprise; if it is not foreseeable that intangible
assets will bring economic benefits to the enterprise, they are regarded as intangible assets with
indefinite service life and are not amortized.
2. Estimated service life of intangible assets with limited service life
For Intangible assets with limited service life, their original values less the estimated net residual
value and the cumulative amount of the provision for impairment that has been made are
amortized in equal installments using the straight-line method over the estimated service life from
the time they are available for use. Intangible assets with indefinite service life are not amortized.
At the end of the period, service life and amortization method of intangible assets with limited
service life are reviewed and changes, if any, are treated as changes in accounting estimates. The
specific amortization period are as follows:
                            Amortization       Amortization period          Basis for use
          Category
                              method                 (year)
                                                                        Within the validity
                            Straight-line
      Land use right                                   30-50            period of the land
                              method
                                                                        title certificate
      Patented              Straight-line
                                                         10             Patent certificate
      technology              method
                            Straight-line                               Software availability
      Software                                           5
                              method                                    period
3. Basis for judgment of intangible assets with indefinite service life and procedures for
reviewing their service life
When reviewing the service life of intangible assets with indefinite service life, the service life is
estimated and amortized in accordance with the amortization policy for intangible assets with
limited service life, if there is evidence that the period over which the intangible asset will provide
economic benefits to the enterprise is foreseeable.
4. Specific criteria for dividing research and development stages
Expenditures on the Company's internal research and development projects are divided into
research stage expenditures and development stage expenditures.
Research stage: the stage of creative and planned investigation and research activities to obtain
and understand new scientific or technical knowledge.
Development stage: the stage in which research results or other knowledge are applied to a certain
plan or design to produce new or substantially improved materials, devices, products, etc. before
commercial production or use.
Development stage expenditures meet specific criteria for capitalization
Expenditures during the development stage of internal research and development projects are
recognized as intangible assets when the following conditions are met:
1. Being technically feasible to complete the intangible assets so that it can be used or sold;
2. Having the intention to complete the intangible assets and use or sell them;
3. The manner in which intangible assets generate economic benefits (including where it can be
demonstrated that a market exists for the product to be produced using such intangible assets or
that a market exists for the intangible assets themselves and that the intangible assets are to be
used internally) demonstrating their usefulness;
4. Having sufficient technical, financial and other resource support to complete the development
of the intangible assets, and having the ability to use or sell the intangible assets;

                              Notes to the Financial statements   Page 18
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
5. Expenditures attributable to the development stage of the intangible assets being able to be
measured reliably.


(XX) Asset impairment
Long-term assets such long-term equity investments, investment properties measured under the
cost model, fixed assets, construction in progress, and intangible assets with limited service life
are subject to impairment test if there are signs of indications of impairment on the balance sheet
date. If the results of impairment test indicate that the recoverable amount of assets is less than its
book value, a provision for impairment is made based on the difference and the assets are
recognized as impairment losses. The recoverable amount is the net of the fair value of the assets
less costs of disposal and the current value of the expected future cash flows from the assets
(whichever is higher). Provision for asset impairment is calculated and recognized on the basis of
individual assets. If it is difficult to estimate the recoverable amount of an individual asset, the
recoverable amount of an asset group is determined based on the asset group to which the asset
belongs. The asset group is the smallest combination of assets that can independently generate
cash inflows.
Goodwill, intangible assets with indefinite service life, and intangible assets that have not yet
reached a usable state are subject to impairment test at least at the end of each year.
The Company performs the impairment test for goodwill. For the book value of goodwill arising
from a business combination, the Company amortizes it to the relevant asset group on a reasonable
method from the purchase date; if it is difficult to be amortized to the relevant asset group, it is
amortized to the relevant portfolio of asset groups. When amortizing the book value of goodwill,
the Company amortizes it based on the relative benefits that the relevant asset groups or portfolio
of asset groups can obtain from the synergies of business combination, and performs goodwill
impairment test on this basis.
In the impairment test for the relevant asset group or combination of asset groups containing
goodwill, if there are indications of impairment for the asset group or combination of asset groups
related to goodwill, the asset group or combination of asset groups that does not contain goodwill
is first tested for impairment, the recoverable amount is calculated and compared with the relevant
book value, and corresponding impairment losses are recognized. An impairment test is then
performed on the asset group or combination of asset groups containing goodwill by comparing
the book value of the relevant asset group or combination of asset groups (including the part of the
book value of the goodwill apportioned to it) with its recoverable amount. If the recoverable
amount of the relevant asset group or combination of asset groups is less than its book value,
impairment losses on goodwill are recognized.
Once the above-mentioned asset impairment losses are recognized, they will not be reversed in
subsequent accounting periods.


(XXI) Long-term deferred expenses
1. Amortization method for long-term deferred expenses
The Company's long-term deferred expenses refer to various expenses that have been incurred but
the benefit period is more than one year (excluding one year). Long-term deferred expenses are
amortized in installments according to the benefit period of the expense item. If a long-term
deferred expense item cannot benefit future accounting periods, all the amortized value of the item
that has not been amortized will be transferred to the current profit or loss.
The renovation of lease premises is recognized as long-term deferred expenses and amortized over
the shorter of the following two periods:
(1) The estimated service life of the renovation (the estimated time until the next renovation);
(2) The estimated remaining service life of the main structure of the property
The Company's subsequent expenditure that do not meet the conditions for fixed assets

                             Notes to the Financial statements   Page 19
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
recognition, such as capital repairs, are recognized as long-term deferred expenses in the year they
occur, and are subsequently amortized in installments during the benefit period.
2. Amortization period of long-term deferred expenses

Item                    Amortization period
Renovation         of   The estimated service life of the renovation and the estimated remaining
rented fixed assets     service life of the main structure of the property (whichever is shorter).
Expenditures      for
capital repairs of      Overhaul cycle for gas generator unit
fixed assets


(XXII) Contract liabilities
Contract liabilities refer to the Company's obligation to transfer goods or services to customers for
consideration received or receivable from customers. Contract assets and contract liabilities under
the same contract are presented in the net term.
(XXIII) Employee compensation
1. Accounting treatments of short-term compensation
During the accounting period when employees provide services for the Company, the Company
recognizes the actual short-term compensation as a liability and includes it in the current profit or
loss or related asset costs.
The Company contributes social insurance premiums and housing fund for its employees, as well
as labor union fund and employee education expenses withdrawn as required, and calculates and
determines the corresponding amount of employee compensation in accordance with the
prescribed accrual basis and accrual ratio during the accounting period in which the employees
render services to the Company.
For non-monetary employee benefits, if they can be measured reliably, they are measured at fair
value.
2. Accounting treatments for post-employment benefits
Defined contribution plans
The Company pays basic endowment insurance and unemployment insurance for its employees in
accordance with relevant regulations of the local government. During the accounting period when
employees provide services to the Company, the amount payable is calculated based on the
payment base and ratio stipulated by the local government, and is recognized as a liability and
included in current profit or loss or related asset costs.
In addition to basic endowment insurance, the Company has also established an enterprise annuity
payment system (supplementary endowment insurance)/enterprise annuity plan in accordance with
the relevant policies of the national enterprise annuity system. The Company pays contributions to
local social insurance institutions/annuity plans based on a certain ratio of total employee wages,
and includes the corresponding expenditures in current profit or loss or related asset costs.
3. Accounting treatments for dismissal benefits
When the Company cannot unilaterally withdraw dismissal benefits provided by the termination
of labor relationship plan or redundancy proposal, or when it recognizes the costs or expenses
related to the restructuring involving the payment of dismissal benefits (whichever is earlier),
employee compensation liabilities arising from dismissal benefits are recognized and included in
current profit or loss.


(XXIV) Estimated liabilities
1. Recognition criteria for estimated liabilities

                              Notes to the Financial statements   Page 20
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
The Company recognizes the obligations related to contingencies such as litigation, debt
guarantees, onerous contracts, restructuring matters, etc. as estimated liabilities when the
following conditions are met at the same time:
(1) The obligation being the current obligation of the Company;
(2) The performance of the obligation being likely to cause economic benefits to flow out the
Company;
(3) The amount of the obligation being able to be measured reliably.
2. Measurement methods for various types of estimated liabilities

(1) When the obligations generated from such contingencies as external guarantee, contentious
matters, products quality guarantees and onerous contracts are present obligations of the Company,
the performance of such obligations is likely to result in outflow of economic benefits from the
Company and if the amount of the obligations can be measured reliably, such obligations shall be
recognized as estimated liabilities by the Company.
(2) The estimated liabilities of the Company are initially measured at the best estimate of expenses
required for the performance of relevant present obligations, and the book value of the estimated
liabilities shall be reviewed on the balance sheet date.
The Company's estimated liabilities are initially measured at best estimate of the expenditures
required to perform the related present obligations.
When determining best estimate, the Company comprehensively considers factors such as risks,
uncertainty and time value of money related to contingencies. Where the effect on the time value
of money is material, the best estimate is determined by discounting the relevant future cash
outflows.
Best estimate is treated separately as follows:
If there being a continuous range (or interval) of required expenditures, and various outcomes
within the range are equally likely to occur, best estimate is determined based on the middle value
of the range, that is, the average of the upper and lower limits.
If there being no continuous range (or interval) of required expenditures, or if there being a
continuous range but the probabilities of occurrence of the various results within the range are not
the same, the best estimate is determined on the basis of the most probable amount to be incurred
if the contingency relates to a single item; if the contingency involves multiple projects, best
estimate is calculated and determined based on various possible outcomes and related probabilities.
If all or part of the Company's expenses required to settle estimated liabilities are expected to be
compensated by a third party, the compensation amount is recognized separately as an asset when
it is basically certain that it can be received. The recognized compensation amount shall not
exceed the book value of estimated liabilities.


(XXV) Revenue
1. General principles
If the Company fulfills its performance obligations under a contract, that is, when the customer
obtains right of control of the relevant goods or services, revenue is recognized. Performance
obligations are contractual commitments in which the Company transfers clearly distinguishable
goods or services to the customer. Obtaining right of control of the relevant goods or services
refers to the ability to control the use of the goods or the provision of the services and to derive
virtually all of the economic benefits therefrom.

                             Notes to the Financial statements   Page 21
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
If one of the following conditions is met, it is performance obligations to be fulfilled within a
certain period of time, and the Company recognizes revenue over a period of time in accordance
with the performance progress: (1) the customer obtaining and consuming the economic benefits
arising from the Company's performance at the same time as the Company's performance; (2) the
customer being able to control the goods under construction during the Company's performance;
(3) the goods produced by the Company during the performance of the contract having
irreplaceable uses, and the Company having the right to collect payment for the cumulative
performance part completed so far during the entire contract period. Otherwise, the Company
recognizes revenue at the time point at which the customer obtains the right of control of the
related goods or services.
2. Sales with quality assurance clauses
For sales with a quality guarantee clause, if the quality guarantee provides a separate service to the
customer in addition to the assurance that the goods or services sold meet standards specified
herein, the quality guarantee constitutes an individual performance obligation.Otherwise, the
Company accounts for the quality assurance liability in accordance with the provisions of the
Accounting Standards for Business Enterprises No. 13 - Contingencies.
3. Main responsible persons and agent
The Company identifies itself as the person with main liabilities or the agent when engaging in
transactions based on whether it has the right of control of the goods or services before
transferring them to the customer.If the Company has the right of control of the goods or services
before transferring them to the customer, the Company identifies itself as the person with main
liabilities and recognizes revenue based on the total consideration received or receivable;
otherwise, the Company identifies itself as the agent and recognizes revenue based on the amount
of commissions or handling charges that may be received. This amount is determined according to
the net amount after deducting the price payable to other related parties from the total
consideration received or receivable, or according to the specified commissions amount, ratio or
other factors.
4. Principles
If the Company fulfills its performance obligations under a contract, that is, when the customer
obtains right of control of the relevant goods or services, revenue is recognized. Obtaining right of
control of the relevant goods or services refers to the ability to control the use of the goods or the
provision of the services and to derive virtually all of the economic benefits therefrom.
(1) Revenue from power production and sales
When the power is transmitted to the power grid company specified in the power sales contract,
which means the power grid company has obtained the right of control of the power, the Company
shall recognize the reported sales revenue.
(2) Revenue from integrated energy services
Revenue from integrated energy services between the Company and its customers mainly includes
revenue from engineering labor and services such as operation and maintenance, management,
commissioning, and overhaul. If multiple performance obligations are involved, they shall be split
reasonably. The equipment sales shall be processed according to the sales of goods business. The
provision of labor and services is generally dealt with according to the output method based on the
performance obligation fulfilled within a certain time period. Requirements are as follows:
1) Sales of supporting equipment
For sales of equipment, revenue shall be recognized when the customer obtains the right of control
the equipment. In general, the recognition time point shall be the time when the customer signs
after receiving the completed or delivered products. Based on the terms of the Contract, the
required attachments for revenue recognition include but are not limited to the sales contract,
commodity shipping order, customer receipt sheet, equipment acceptance sheet or customs
declaration form, etc.
2) Labor and services provided

                             Notes to the Financial statements   Page 22
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
① The recognition and settlement of revenue from such business shall comply with the provisions
of the business contract signed by both parties. At the end of each settlement period, the necessary
documents stipulated in the Contract, such as the attendance sheet, service application form, etc.
confirmed by both parties shall be provided as the proof of the cumulative revenue recognition of
the settlement period and materials for collecting service price.
① On each balance sheet date within the settlement period, revenue shall be tentatively estimated
based on the performance progress. When using the output method to determine the performance
progress, the progress is usually determined in combination with the actual measured completion
progress, assessment of achieved results, achieved milestones, progress of the schedule, completed
or delivered products and other output indicators.


(XXVI) Contract costs
Costs of obtaining the contract
The incremental costs incurred by the Company to obtain the Contract (that is, costs which would
not have been incurred without obtaining the Contract) that may be recovered shall be recognized
as an asset and amortized on the same basis as the revenue recognition of goods or services related
to the asset. In addition, the asset shall be included in the current profit or loss. If the amortization
period of the asset does not exceed one year, the asset shall be included in the current profit or loss
when incurred. Other expenses incurred by the Company to obtain the contract shall be included
in the current profit or loss when incurred, unless otherwise the expenses are borne by the
customer.
Costs of performing the contract
The costs incurred by the Company to perform the Contract are recognized as an asset if they do
not fall within the scope of other provisions specified in the Accounting Standards for Business
Enterprises other than the revenue standards and meet all the following conditions: (1) when the
cost is directly related to an existing or expected contract; (2) when the cost increases the
Company resources for fulfilling performance obligations in the future; (3) when the cost is
expected to be recovered. The above-mentioned asset shall be amortized on the same basis as the
revenue recognition of goods or services related to the asset and included in the current profit or
loss.
Impairment of contract costs
When recognizing impairment losses of assets related to contract costs, the Company shall first
recognize impairment losses of other assets related to the Contract that are recognized in
accordance with other relevant accounting standards for business enterprises; then, if book value is
higher than difference between the remaining consideration expected to be obtained by the
Company for the transfer of the goods related to the asset and the estimated cost to be incurred for
the transfer of the related goods, provision for impairment shall be made for the excess, and it
shall be recognized as the asset impairment loss.
If the factors of impairment in the previous period subsequently changed, causing the
aforementioned difference to be higher than the book value of the asset, provision for asset
impairment that has been made previously shall be reversed and the higher part shall be included
in the current profit or loss, but the book value of the asset after the reversal shall not exceed the
book value of the asset on the date of reversal assuming no provision for impairment is made.


(XXVII) Government subsidies
1. Type
Government subsidies refer to the monetary and non-monetary assets obtained by the Company
from the government free of charge. Government subsidies are divided into asset-related
government subsidies and income-related government subsidies.
Asset-related government subsidies refer to government subsidies obtained by the Company and

                               Notes to the Financial statements   Page 23
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
used to purchase, construct or otherwise form long-term assets. Income-related government
subsidies refer to government subsidies other than asset-related government subsidies.
2. Recognition time point
At the end of the reporting period, if there is evidence that the Company can meet the relevant
conditions stipulated in the financial support policy and is expected to receive financial support
funds, government subsidies shall be recognized based on the amount receivable. Otherwise,
government subsidies shall be recognized when they are actually received.
If government subsidies are monetary assets, they shall be measured at the amount received or
receivable. If government subsidies are non-monetary assets, they shall be measured at the fair
value; If the fair value cannot be obtained reliably, government subsidies shall be measured at the
nominal amount (RMB 1). Government subsidies measured at the nominal amount shall be
directly included in the current profit or loss.
3. Accounting treatment
Asset-related government subsidies shall be used to offset the book value of the relevant assets or
recognized as the deferred income. Government subsidies which are recognized as the deferred
income shall be included in the current profit or loss in installments according to a reasonable and
systematic method within service life of the relevant assets (if the government subsidies are
related to the daily activities of the Company, the subsidies shall be included in other income; if
the government subsidies are not related to the daily activities of the Company, the subsidies shall
be included in non-operating revenue);
income-related government subsidies that are used to compensate the Company for relevant costs
or losses in subsequent periods shall be recognized as the deferred income and included in the
current profit or loss (if the government subsidies are related to the daily activities of the Company,
the subsidies shall be included in other income; if the government subsidies are not related to the
daily activities of the Company, the subsidies shall be included in non-operating revenue) or used
to offset relevant costs or losses; if the subsidies are used to compensate for the relevant costs or
losses incurred by the Company, the subsidies shall be directly included in the current profit or
loss (if the government subsidies are related to the daily activities of the Company, the subsidies
shall be included in other income; if the government subsidies are not related to the daily activities
of the Company, the subsidies shall be included in non-operating revenue) or used to offset
relevant costs or losses.
The policy-based preferential loan interest subsidies obtained by the Company will be accounted
for differently in the following two situations:
(1) if the central finance allocates interest subsidies to the lending bank, and the lending bank
provides loans to the Company at a policy-based preferential interest rate, the Company will use
the actual loan amount received as the entry value of the loan and calculate related borrowing
costs based on the loan principal and the policy-based preferential interest rate.
(2) if the central finance directly allocates interest subsidies to the Company, the Company will
use the corresponding interest subsidies to offset related borrowing costs.


(XXVIII) Deferred tax assets and deferred tax liabilities
For deductible temporary differences, deferred tax assets shall be recognized with the taxable
income that is likely to be obtained in the subsequent period to offset deductible temporary
differences as the limit. For deductible losses and tax credits which can be carried forward to
subsequent years, the corresponding deferred tax assets shall be recognized with the future taxable
income that is likely to be obtained to offset deductible losses and tax credits as the limit.
For taxable temporary differences, except in special circumstances, the deferred tax liabilities shall
be recognized.
Special circumstances in which deferred tax assets or deferred tax liabilities are not recognized
include: initial recognition of goodwill; other transactions or matters, except for business

                             Notes to the Financial statements   Page 24
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
combination, that affect neither accounting profits nor taxable income (or deductible losses) when
incurred.
When the Company is entitled to the legal right to settle on a net basis and intends to settle on a
net basis or obtain assets and pay off liabilities at the same time, the current income tax assets and
current income tax liabilities shall be reported at the net amount after offsetting.
When the Company is entitled to settle current income tax assets and current income tax liabilities
on a net basis, and deferred tax assets and deferred tax liabilities are related to income tax levied
by the same taxation department on the same taxpayer or different taxpayers, but in each
significant period when deferred tax assets and liabilities are reversed, if the taxpayer involved
intends to settle current income tax assets and liabilities on a net basis or obtain assets and pay off
liabilities at the same time, deferred tax assets and deferred tax liabilities shall be reported at the
net amount after offsetting.


(XXIX) Lease
Lease refers to a contract whereby the lessor transfers the right to use an asset to the lessee in
exchange for consideration for a certain period of time.
1. The Company acts as a lessee
The Company shall determine the right-of-use assets on the starting date of the lease term and
recognize lease liabilities based on the present value of the unpaid lease payments. Lease
payments include fixed payments and amounts payable when the purchase option or option to
terminate lease is likely to be exercised. Variable rent determined based on a certain ratio of sales
amount shall not be included in lease payments and shall be included in the current profit or loss
when actually incurred.
The Company's right-of-use assets include leased houses and buildings, machinery equipment,
means of transport, computers and electronic equipment, etc.
For short-term leases with lease term of no more than 12 months and leases of low value assets
with a single asset at a low value when it is new, the Company will not to recognize right-of-use
assets and lease liabilities, and the relevant rental expenses will be calculated based on the
straight-line method in each period during lease term and included in the current profit or loss or
related asset costs.
2. The Company acts as a lessor
Financing lease refers to the lease that basically transfers all the risks and rewards related to the
ownership of leased assets. Other leases are operating leases.
(1) Operating leases
When the Company rents out its own buildings, machinery equipment and means of transport, the
rental income from operating leases is recognized in accordance with the straight-line method
during lease term. Variable rents, which are determined by the Company at a certain percentage of
sales, are included in rental income when actually incurred.
(2) Financing lease
On the commencement date of the lease term, the Company recognizes the finance lease
receivables for the financing lease and terminates the derecognition of related assets. The
Company lists finance lease receivables as long-term receivables, while the finance lease
receivables collected within one year (including) from the balance sheet date are listed as non-
current assets due within one year.


(XXX) Special reserves
The Safety production costs extracted from the Company's power production and sales business in
accordance with national regulations are included in the cost of related products or current profit

                             Notes to the Financial statements   Page 25
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
or loss as well as in the "special reserve" account. The currently accrual standard is based on
operating revenue of the previous year, using an excess regressive method to determine the accrual
amount for the current year. Such amount shall be withdrawn evenly every month, and be included
in the cost of related products or current profit or loss as well as in the "special reserve" account.
When the Company uses special reserve, the amount shall be charged directly to the special
reserve if it belongs to cost of spending; if fixed assets are formed, they will be recognized as
fixed assets when such assets reach the intended usable state; at the same time, special reserve is
offset according to the cost of fixed assets formed, and accumulated depreciation of the same
amount shall be recognized. Such fixed assets will no longer be depreciated in subsequent periods.


(XXXI) Changes in significant accounting policies and accounting estimates
1. Significant changes in accounting policies
(1) Interpretation No. 16 of Accounting Standards for Business Enterprises
The Ministry of Finance issued the Interpretation No. 16 of Accounting Standards for Business
Enterprises on December 13, 2022. The Company implemented the "Initial recognition of deferred
income taxes related to assets and liabilities arising from a single transaction is not applicable"
from January 1, 2023, and adjusted the cumulative impact to the initial retained earnings and other
related financial statement items for the earliest period in which the financial statements are
presented. The implementation of the above accounting policies had no impact on the Company.


2. Changes in significant accounting estimates
The main accounting estimates had no chang during the reporting period.


IV. Taxes
(I) Main tax type and rates

        Tax type            Tax basis                                            Tax rate
                            The output tax is calculated based on revenue
                            from the sale of goods and taxable services
        Value-added         calculated according to the tax law. After           13% 、9%、 6%、
        tax                 deducting the input tax allowed to be deducted       5%、3%
                            in the current period, difference shall be the
                            value-added tax payable.
        Urban
        maintenance         Based on the actual value-added tax and
                                                                                 7%
        and                 consumption tax paid
        construction tax
        Education           Based on the actual value-added tax and
                                                                                 3%
        surcharge           consumption tax paid
        Local education     Based on the actual value-added tax and
                                                                                 2%
        surcharge           consumption tax paid
                                                                                 Except for the
                                                                                 following
                                                                                 enterprises     that
                                                                                 enjoy            tax
        Corporate
                            Based on taxable income                              preferential
        income tax
                                                                                 treatment, tax shall
                                                                                 be paid at 25% of
                                                                                 the taxable income.



                             Notes to the Financial statements   Page 26
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements

        Tax type           Tax basis                                           Tax rate
                           For the actual occupied land area of industrial
                           land in Nanshan District, Shenzhen, tax shall be
        Urban land use     paid at RMB 2-8/square meter. For the actual
        tax                occupied land area of industrial land in
                           Zhongshang, tax shall be paid at RMB 1/square
                           meter.
                           Foreign taxes shall be calculated according to
        Foreign taxes      the tax regulations of each overseas country and
                           region.
The taxpayers with different corporate income tax are as follows:

        Taxpayer name                                                     Income tax rate
        The Company                                                            15%
        Shenzhen Nanshan Power Engineering Company                             15%


(II) Main tax preferential treatment
1. Corporate income tax
(1) The Company obtained a national high-tech enterprise certificate numbered GR202144204080,
which is valid for 3 years. From 2021 to 2023, the Company's corporate income tax enjoys a
preferential income tax rate of 15% for high-tech enterprise.
(2) Shenzhen Nanshan Power Engineering Company obtained a national high-tech enterprise
certificate numbered GR202344200269, which is valid for 3 years. From 2023 to 2025, the
Company's corporate income tax enjoys a preferential income tax rate of 15% for high-tech
enterprise.
2. Value-added tax
                Compa     Relevant          laws,                             Preferen
      Tax                                           Approval        Approva                 Validity
                ny        regulations         and                             ce
      type                                          authority       l No.                   period
                name      policies                                            enjoyed
                Shenzh
                                                                              Instant
                en
                                                                              collectio
                Nansha    Notice on the Catalog
                                                                              n/refund
                n         of Preferential Value     Shenzhen
                                                                              of value-
                Power     value-added Tax on        Qianhai         SQSST                   August 1,
      Value-                                                                  added
                Enviro    Products and Services     State           [2018]                  2020-
      added                                                                   tax for
                nmenta    for    Comprehensive      Taxation        No.                     July 31,
      tax                                                                     compreh
                l         Utilization        of     Administr       18302                   2023
                                                                              ensive
                Protect   Resources (CS [2015]      ation
                                                                              resource
                ion       No. 78)
                                                                              utilizatio
                Compa
                                                                              n
                ny
                Shenzh    Measures for the                                    Value-
                en        Administration     of                               added
                                                    Shenzhen
                Nansha    Value-added      Tax                                tax
                                                    Qianhai         GJSWZJ
      Value-    n         Exemption for Cross-                                exempti
                                                    State           GG
      added     Power     border        Taxable                               on     for
                                                    Taxation        [2016]
      tax       Engine    Activities         in                               cross-
                                                    Administr       No. 29
                ering     Replacement        of                               border
                                                    ation
                Compa     Business Tax with                                   taxable
                ny        Value-added tax                                     activities



                            Notes to the Financial statements   Page 27
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
V. Notes to consolidated financial statements items
(I) Monetary funds
                                                                            Balance at the end of
        Item                                     Ending balance
                                                                            last year
        Cash on hand                                            30,329.83                 37,698.63
        Bank deposits                                   310,694,227.98              647,983,965.23
        Other monetary funds                              5,464,224.68                27,474,602.54
        Deposits with financial company
        Total                                           316,188,782.49              675,496,266.40
        Including: total amount deposited
                                                          6,105,051.40                 6,016,949.57
        abroad

The details of monetary funds that have restrictions on their use due to mortgage, pledge or
freezing, as well as those deposited overseas with restrictions on repatriation are as follows:

                                                                              Balance at the end of
                        Item                         Ending balance
                                                                                   last year
        L/G deposit                                        5,453,862.93
        Deposit for bank acceptance bills                                             27,474,594.34
                        Total                              5,453,862.93               27,474,594.34

In addition, as at December 31, 2023, the Company had no monetary funds subject to the
restriction to use due to mortgage, pledge or freezing and with potential recovery risks.
(II) Financial assets held for trading
                                                                              Balance at the end of
                        Item                          Ending balance
                                                                                   last year
        Financial assets measured at fair
        value with changes included in the                226,000,000.00            440,013,571.10
        current profit or loss
        Including: investments in debt
        instruments
                     Investments in equity
        instruments
                     Derivative financial
        assets
                     Others (note)                        226,000,000.00            440,013,571.10
        Financial assets designated as
        measured at fair value and whose
        changes are recorded in profit or loss
        for the period
           Including: investments in debt
        instruments
                        Investments in equity
        instruments
                         Total                            226,000,000.00            440,013,571.10
Note: the balance at the end of the current year is the structured deposits of the Company's idle
self-owned funds.



                            Notes to the Financial statements    Page 28
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(III) Accounts receivable
1. Disclosure of accounts receivable on an aging basis
                                                                               Balance at the end of last
        Aging                                  Ending balance
                                                                               year
        Within 1 year                                       51,764,528.59                 103,306,168.76
        1-2 years                                           40,359,448.07                  34,239,288.30
        2-3 years                                           21,478,238.86
        Over 3 years                                         5,464,799.07                   5,558,673.67
                      Subtotal                             119,067,014.59                 143,104,130.73
        Less: provision for bad debts                        7,091,763.49                   7,270,638.09
                        Total                              111,975,251.10                 135,833,492.64

2. Accounts receivable are classified and disclosed according to the method of provision for
bad debts
                                                           Ending balance

           Category                 Book balance             Provision for bad debts
                                                  Ratio                       Provision    Book value
                                 Amount                       Amount
                                                  (%)                         ratio (%)
        Provision for
        bad debts on
                                                           5,464,799.07         100.00
        an individual           5,464,799.07        4.59
        basis
        Provision
        provision for
        bad debts on a                                     1,626,964.42           1.43    111,975,251.10
                            113,602,215.52         95.41
        credit      risk
        portfolio basis
             Total          119,067,014.59        100.00   7,091,763.49           5.96    111,975,251.10


                                                   Balance at the end of last year

           Category                 Book balance             Provision for bad debts
                                                  Ratio                       Provision    Book value
                                 Amount                       Amount
                                                  (%)                         ratio (%)
        Provision for
        bad debts on
                                5,558,673.67        3.88   5,558,673.67         100.00
        an individual
        basis
        Provision
        provision for
        bad debts on a     137,545,457.06          96.12   1,711,964.42           1.24    135,833,492.64
        credit      risk
        portfolio basis
             Total         143,104,130.73         100.00   7,270,638.09           5.08    135,833,492.64




                                Notes to the Financial statements   Page 29
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(1)Important provision for bad debts on an individual basis
                        Balance at the end of last
                                                                       Ending balance
                                  year
                                                                                               Reasons
           Name                         Provision                     Provision    Provisio
                          Book                           Book                                    for
                                         for bad                       for bad      n ratio
                         balance                        balance                                provisio
                                          debts                         debts        (%)
                                                                                                  n
        Shenzhen
        Petrochemi                                                                             Not
        cal Oil                                                                                expecte
                        3,474,613.      3,474,613.     3,474,613.     3,474,613.
        Products                                                                     100.00    d to be
                               06              06             06             06
        Bonded                                                                                 recover
        Trading                                                                                ed
        Co., Ltd.
                                                                                               Not
        China
                                                                                               expecte
        Solibase        1,137,145.      1,137,145.     1,137,145.     1,137,145.
                                                                                     100.00    d to be
        Engineering            51              51             51             51
                                                                                               recover
        Co., Ltd.
                                                                                               ed
                        4,611,758.      4,611,758.     4,611,758.     4,611,758.
            Total                                                                    100.00
                               57              57             57             57


(2) Provision for bad debts by portfolio
                                                           Ending balance
        Name of portfolio            Accounts             Provision for bad
                                                                                   Provision ratio (%)
                                     receivable                 debts
        Portfolio II:
        receivables from
                                     26,995,169.61
        power production
        and sales
        Portfolio III:
        receivables from
                                     86,607,045.91                1,626,964.42                     1.88
        integrated energy
        service
               Total                113,602,215.52                1,626,964.42                     1.43


3. Provision for bad debts accrued, reversed or recovered for the current period

                                        Amount of changes for the current period
                       Balance at
                                                             Charge-                          Ending
     Category          the end of              Reverse or
                                       Accrual                off or      Others              balance
                        last year               recovery
                                                            write-off
 Provision for bad
 debts on an          5,558,673.67                                93,874.60               5,464,799.07
 individual basis
 Provision for bad
 debts on a credit
                      1,711,964.42                   85,000.00                            1,626,964.42
 risk portfolio
 basis
        Total         7,270,638.09                   85,000.00    93,874.60               7,091,763.49




                             Notes to the Financial statements     Page 30
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
4. Accounts receivable from actual write-off for the current period

                               Item                                         Write-off amount
       Accounts receivable from actual written-off                                           93,874.60




5. Accounts receivable and contract assets of the top five ending balances by debtors
                                                                                              Ending
                                                                                            balance of
                                                                            Proportion      provision
                                                            Ending
                                                                            to the total      for bad
                                              Ending      balance of
                                 Ending                                       ending         debts of
                                              balance      accounts
                               balance of                                   balance of       accounts
           Entity name                           of       receivable
                                accounts                                     accounts       receivable
                                              contrac        and
                               receivable                                   receivable          and
                                              t assets     contract
                                                                           and contract     provision
                                                            assets
                                                                            assets (%)     for contract
                                                                                               asset
                                                                                           impairment
        China Machinery
                               81,821,045.               81,821,045
        Engineering                                                               68.67    1,626,964.4
                                       91                       .91
        Corporation                                                                                  2
        Shenzhen Power
                               26,981,407.               26,981,407
        Supply Bureau                                                             22.64
                                       91                       .91
        Co., Ltd.
        Power China
                               4,539,000.0    88,000.     4,627,000.
        Hubei Engineering                                                          3.88
                                         0        00             00
        Co., Ltd.
        Shenzhen
        Petrochemical Oil                                                                  3,474,613.0
                               3,474,613.0                3,474,613.               2.92
        Products Bonded                                                                              6
                                         6                       06
        Trading Co., Ltd.
        China Solibase
                                                                                           1,137,145.5
        Engineering Co.,       1,137,145.5                1,137,145.               0.96
                                                                                                     1
        Ltd.                             1                        51
                              117,953,212     88,000.    118,041,21                        6,238,722.9
               Total                                                              99.07
                                       .39        00            2.39                                 9


(IV) Advances to suppliers
1. Advances to suppliers are listed based on aging
                                        Ending balance              Balance at the end of last year
               Aging
                                 Book balance       Ratio (%)          Book balance        Ratio (%)
        Within 1 year            26,780,454.52            99.67         44,506,222.90            97.93
        1 to 2 years                  72,700.00            0.27             514,851.14            1.13
        2 to 3 years                                                        389,626.88            0.86
        Over 3 years                  16,021.07            0.06              37,586.94            0.08
                Total            26,869,175.59           100.00         45,448,287.86           100.00


                             Notes to the Financial statements   Page 31
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements


2. Prepayments of the top five ending balances by prepayment objects
                                                                                  Proportion to the
                       Entity name                         Book balance
                                                                               prepayment balance (%)
        CNOOC Gas & Power Group Co.,
                                                              15,992,752.12                       59.52
        Ltd.
        Shenzhen Gas Group Co., Ltd.                           9,618,506.86                       35.80
        Shenzhen Rici Clinic                                     172,600.00                        0.64
        Shenzhen Weinuosi Technology
                                                                 157,800.00                        0.59
        Development Co., Ltd.
        Shenzhen Branch of Ping An
                                                                 131,400.00                        0.49
        Pension Insurance Co., Ltd.
                          Total                               26,073,058.98                   97.04


(V) Other receivables
                                                                                 Balance at the end of
                          Item                             Ending balance
                                                                                      last year
        Interest receivable
        Dividends receivable
        Other receivables                                      19,233,117.52              18,314,003.84
                          Total                                19,233,117.52              18,314,003.84


1. Other receivables
(1) Disclosure based on aging
                                                                                 Balance at the end of
                          Aging                            Ending balance
                                                                                      last year
        Within 1 year                                           1,617,984.30               1,058,183.07
        1 to 2 years                                                3,356.31                 36,436.71
        2 to 3 years                                                                        243,391.13
        Over 3 years                                           48,002,435.80              49,016,380.54
                        Subtotal                               49,623,776.41              50,354,391.45
        Less: provision for bad debts                          30,390,658.89              32,040,387.61
                          Total                                19,233,117.52              18,314,003.84


(2) Disclosure by category

                                                            Ending balance

           Category                 Book balance              Provision for bad debts
                                                Ratio                         Provision    Book value
                                  Amount                       Amount
                                                 (%)                          ratio (%)
        Provision for
                              30,390,658.89        61.24     30,390,658.89      100.00
        bad debts on an

                               Notes to the Financial statements   Page 32
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements

                                                         Ending balance

             Category             Book balance               Provision for bad debts
                                               Ratio                        Provision      Book value
                               Amount                         Amount
                                                (%)                         ratio (%)
        individual basis
        Provision
        provision for
        bad debts on a     19,233,117.52         38.76                                    19,233,117.52
        credit risk
        portfolio basis
              Total        49,623,776.41        100.00   30,390,658.89            61.24   19,233,117.52



                                                  Balance at the end of last year

             Category             Book balance               Provision for bad debts
                                               Ratio                        Provision      Book value
                               Amount                         Amount
                                                (%)                         ratio (%)
        Provision for
        bad debts on an    32,328,502.39         64.20   32,040,387.61            99.11        288,114.78
        individual basis
        Provision
        provision for
        bad debts on a     18,025,889.06         35.80                                    18,025,889.06
        credit risk
        portfolio basis
              Total        50,354,391.45        100.00   32,040,387.61            63.63   18,314,003.84


① Provision for bad debts on individual provision basis
                Balance at the end of last
                                                                    Ending balance
                          year
                                                                                                 Reasons
  Name                                                                              Provisio
                  Book         Provision for        Book          Provision for                    for
                                                                                     n ratio
                 balance        bad debts          balance         bad debts                     provisio
                                                                                      (%)
                                                                                                    n
                                                                                                Not
Huiyang
                                                                                                expected
Kangtai        14,311,626.7    14,311,626.7     14,311,626.7      14,311,626.7
                                                                                     100.00     to be
Industrial                0               0                0                 0
                                                                                                recovere
Company
                                                                                                d
Receivable
s from                                                                                          Not
employee                                                                                        expected
benefit        9,969,037.63    9,969,037.63     9,969,037.63      9,969,037.63       100.00     to be
fund                                                                                            recovere
dividends                                                                                       d
and taxes
Shandong                                                                                        Not
Jinan                                                                                           expected
               3,560,000.00    3,560,000.00     3,560,000.00      3,560,000.00       100.00
Power                                                                                           to be
Equipment                                                                                       recovere

                              Notes to the Financial statements   Page 33
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                    Balance at the end of last
                                                                        Ending balance
                              year
                                                                                                   Reasons
  Name                                                                                  Provisio
                      Book         Provision for        Book          Provision for                  for
                                                                                         n ratio
                     balance        bad debts          balance         bad debts                   provisio
                                                                                          (%)
                                                                                                      n
Factory                                                                                            d
Receivable
s from                                                                                             Not
purchase                                                                                           expected
of                 1,736,004.16    1,736,004.16      1,736,004.16     1,736,004.16        100.00   to be
employee                                                                                           recovere
dormitorie                                                                                         d
s
                                                                                                   Not
                                                                                                   expected
Others             2,751,833.90    2,463,719.12        813,990.40       813,990.40        100.00   to be
                                                                                                   recovere
                                                                                                   d
                   32,328,502.3    32,040,387.6      30,390,658.8     30,390,658.8
   Total                                                                                  100.00
                              9               1                 9                9


① Provision provision for bad debts on a portfolio basis
                                                             Ending balance
           Name                                               Provision for bad
                                  Other receivables                                     Provision ratio (%)
                                                                    debts
Portfolio V: guarantee,
deposit and petty cash                     2,650,577.32
portfolio
Portfolio VII: other
receivables and                           16,582,540.20
temporary payments
           Total                          19,233,117.52
(3) Disclosure by nature of payment
                                                                                 Book balance at the end of
           Nature of payment                     Ending book balance
                                                                                         last year
 Guarantee and deposit                                      2,869,769.32                       2,821,122.05
 Receivable from employees                                12,415,545.61                       11,025,579.22
 Current accounts with external
                                                          34,338,461.48                       36,507,690.18
 units
               Subtotal                                   49,623,776.41                       50,354,391.45
 Less: provision for bad debts                            30,390,658.89                       32,040,387.61
                   Total                                  19,233,117.52                       18,314,003.84




                                  Notes to the Financial statements    Page 34
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements


(4) Provision provision for bad debts
                          The first stage     The second stage       The third phase
                                               Expected credit       Expected credit
                                              loss over the life    loss over the life
         Provision for       Expected
                                                    of the                of the              Total
          bad debts        credit losses
                                               instruments (no         instruments
                           over the next
                                                    credit                (credit
                            12 months
                                               impairment has        impairment has
                                                  occurred)             occurred)
        Beginning
                                                                    32,040,387.61         32,040,387.61
        balance
        Beginning
        balance in the
        current period
        --Transfer to
        the second
        stage
        --Transfer to
        the third stage
        --Reverse to
        the second
        stage
        --Reverse to
        the first stage
        Provision for
        the current                                                 129,806.28            129,806.28
        period
        Reverse for
        the current                                                 1,235,154.68          1,235,154.68
        period
        Charge-off for
        the current                                                          544,380.32     544,380.32
        period
        Write-off for
        the current
        period
        Other changes
        Ending
                                                                       30,390,658.89      30,390,658.89
        balance


(5) Provision for bad debts made, reversed or recovered for the current period
                                         Amount of changes for the current period
                     Balance at
                                                                 Charge-      Other          Ending
        Category     the end of                   Reverse or
                                        Accrual                    off or       s            balance
                      last year                    recovery
                                                                 write-off
        Individu
                    32,040,387.6    129,806.2      1,235,154.6      544,380.3              30,390,658.8
        al
                               1            8                8              2                         9
        provision
                    32,040,387.6    129,806.2      1,235,154.6      544,380.3              30,390,658.8
          Total
                               1            8                8              2                         9




                            Notes to the Financial statements      Page 35
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
The amount of provision for bad debts reversed or recovered for the current period, which is
important
                                                                                             The basis for
                                                                                              determining
                                      Reversed or       Reason for
                                                                             Method of        the original
              Entity name              recovered      the reverse or
                                                                             recovery        provision for
                                        amount           recovery
                                                                                             bad debts and
                                                                                             its rationality
        Shenzhen OCT Co.,                                                     Recovered
                                                         It is likely to
        Ltd. Asset Management          1,172,781.26                         on surrender       Long aging
                                                         be recovered
        Branch                                                                   of lease
                 Total                 1,172,781.26



(6) Other receivables of the top five ending balances by debtors
                                                                           Proportion to
                                                                              the total
                                                                                               Ending
                             Nature                                            ending
                                                                                             balance of
          Entity name          of        Book balance        Aging           balance of
                                                                                            provision for
                            payment                                             other
                                                                                              bad debts
                                                                            receivables
                                                                                 (%)
        Huidong Xiefu
                                                           Within 1
        Port
                            Current                        year and
        Comprehensive                    15,532,630.74                            31.30
                            accounts                         1-3
        Development
                                                            years
        Co., Ltd.
        Huiyang
        Kangtai             Current                          Over 3
                                                                                  28.84     14,311,626.70
        Industrial          accounts     14,311,626.70       years
        Company
        Shandong Jinan
        Power
                            Current                          Over 3
        Equipment                                                                  7.17      3,560,000.00
                            accounts      3,560,000.00       years
        Factory Co.,
        Ltd.
        Shenzhen OCT
        Co., Ltd. Asset                                      Over 3
                            Deposit                                                2.94
        Management                        1,460,919.00       years
        Branch
                            Current                          Over 3
        Lai Weicheng                                                               2.85      1,408,866.89
                            accounts      1,408,866.89       years
              Total                      36,274,043.33                            73.10     19,280,493.59




                            Notes to the Financial statements      Page 36
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(VI) Inventories
1. Inventories classification
                                  Ending balance                     Balance at the end of last year
                                    Provision                                   Provision
                                       for                                         for
                                    inventory                                   inventory
                                    depreciati                                  depreciati
                                      on or                                       on or
          Item          Book        provision        Book           Book        provision      Book
                       balance         for           value         balance         for         value
                                   impairmen                                   impairmen
                                       t of                                        t of
                                     contract                                    contract
                                   performan                                   performan
                                     ce costs                                    ce costs
        Fuel and
                      144,943,4      59,223,96      85,719,51      144,000,4      59,079,22   84,921,21
          spare
                          85.98           7.83           8.15          40.38           2.05        8.33
          parts
        Auxiliar
            y
        materials
                      344,882.1                     344,882.1      358,080.0                  358,080.0
        and low-
                              1                             1              2                          2
          value
        consuma
        bles, etc.
         Others       93,850.90                     93,850.90
                      145,382,2      59,223,96      86,158,25      144,358,5      59,079,22   85,279,29
          Total
                          18.99           7.83           1.16          20.40           2.05        8.35

2. Provision for inventory depreciation and provision for impairment of contract
performance costs
                                Increased amount in Decreased amount in
                 Balance at the
                                 the current period   the current period     Ending
         Item     end of last
                                                     Reverse or              balance
                     year        Accrual      Others               Others
                                                     charge-off
         Fuel
          and
                59,079,222.05 191,133.50              46,387.72           59,223,967.83
        spare
        parts
         Total       59,079,222.05     191,133.50                  46,387.72              59,223,967.83


(VII) Contract assets
1. Contract assets
                                   Ending balance                      Balance at the end of last year
            Item                      Provisio                                    Provisio
                            Book                        Book           Book                      Book
                                      n for bad                                  n for bad
                           balance                      value         balance                    value
                                        debts                                       debts
        Project
                                                                      217,009.5                217,009.5
        quality            88,000.00                   88,000.00
                                                                              8                        8
        guarantee
                                                                      217,009.5                217,009.5
           Total           88,000.00                   88,000.00
                                                                              8                        8

                             Notes to the Financial statements      Page 37
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements


2. Disclosure by the method of provision for bad debts

                                                            Ending balance

            Category                  Book balance            Provision for bad debts
                                                  Ratio                      Provision     Book value
                                    Amount                        Amount
                                                   (%)                       ratio (%)
        Provision for bad
        debts on an
        individual basis
        Provision
        provision for bad
        debts on a credit            88,000.00     100.00                                     88,000.00
        risk portfolio
        basis
                Total                88,000.00     100.00                                     88,000.00



                                                   Balance at the end of last year

            Category                  Book balance            Provision for bad debts
                                                  Ratio                      Provision     Book value
                                    Amount                        Amount
                                                   (%)                       ratio (%)
        Provision for bad
        debts on an
        individual basis
        Provision
        provision for bad
        debts on a credit           217,009.58     100.00                                   217,009.58
        risk portfolio
        basis
                Total               217,009.58     100.00                                   217,009.58


(VIII) Other current assets
                                                                                 Balance at the end of
                            Item                          Ending balance
                                                                                      last year
       Large-amount negotiable certificate of
                                                             225,278,591.79              180,496,849.31
       deposit and accrued interest
       Prepaid income tax                                         6,583,089.98             6,583,089.98
       Amount of input value-added tax to be
                                                                   996,267.20              1,103,481.37
       deducted
       Others                                                        8,019.66                 65,419.78
                            Total                            232,865,968.63              188,248,840.44




                              Notes to the Financial statements    Page 38
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements

(IX) Long-term equity investments
                                                                         Increase and decrease in the current period
                                       Ending                            Investme                                                                            Ending
                        Balance at     balance                                                                                                               balance
                        the end of                                        nt profit
                                          of                                          Adjustment              Declarati                                         of
                         last year                Addition                 or loss                   Other                 Provision           Ending
          Investees                   provision              Reduced                    s to the                on of                                       provision
                                                     al                  recogniz                    chang                    for      Othe    balance
                                         for                 investme                    other                  cash                                           for
                                                  investme               ed under                     es in                impairme     rs
                                      impairme                  nt                    comprehens              dividend                                      impairme
                                                     nt                      the                     equity                    nt
                                          nt                                          ive income              or profits                                        nt
                                                                           equity
                                                                          method
        1.
        Associates
        Huidong
        Xiefu Port
        Comprehens
        ive
        Developmen      4,414,021.8                                       753,311.                                                            5,167,333.
        t Co., Ltd.               0                                            50                                                                    30
        (hereinafter
        referred to
        as "Huidong
        Xiefu")
        Jiangsu
        Liaoyuan
        Environmen
        tal
        Protection
                        79,082,076.                                      6,966,316.                           1,214,550.                      84,833,842.
        Technology                                                               30                                   00                              74
                                44
        Co.,     Ltd.
        (hereinafter
        referred to
        as
        "Liaoyuan



                                                             Notes to the Financial statements   Page 39
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements


                                                                        Increase and decrease in the current period
                                      Ending                            Investme                                                                            Ending
                        Balance at    balance                                                                                                               balance
                        the end of                                       nt profit
                                         of                                          Adjustment              Declarati                                         of
                         last year               Addition                 or loss                   Other                 Provision          Ending
          Investees                  provision              Reduced                    s to the                on of                                       provision
                                                    al                  recogniz                    chang                    for      Othe   balance
                                        for                 investme                    other                  cash                                           for
                                                 investme               ed under                     es in                impairme     rs
                                     impairme                  nt                    comprehens              dividend                                      impairme
                                                    nt                      the                     equity                    nt
                                         nt                                          ive income              or profits                                        nt
                                                                          equity
                                                                         method
        Environmen
        tal
        Protection")
                       83,496,098.                                      7,719,627.                           1,214,550.                      90,001,176.
               Total                                                            80                                   00                              04
                               24




                                                            Notes to the Financial statements   Page 40
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(X) Other investments in equity instruments
1. Other investments in equity instruments
                         Ending balance in the current year              Balance at the end of last year
       Item            Original      Fair value       Ending          Original       Fair value      Ending
                      book value      changes         balance        book value       changes        balance
 Sunpower
 Technology           140,000,000                       140,000,0   140,000,000                       140,000,
 (Jiangsu)     Co.,            .00                          00.00           .00                        000.00
 Ltd.
 Shenzhen
 Yuanzhi Ruixin
 New Generation
 Information
 Technology           100,000,000                       100,000,0   100,000,000                       100,000,
 Private     Equity            .00                          00.00           .00                        000.00
 Investments
 Fund Partnership
 (Limited
 Partnership)
 Jiangxi Nuclear      60,615,000.                       60,615,00    60,615,000.                      60,615,0
 Power Co., Ltd.              00                             0.00            00                          00.00
 Shenzhen
 Petrochemical
                      2,500,000.0                                    2,500,000.0
 Oil       Products                  -2,500,000.00                                  -2,500,000.00
                                0                                              0
 Bonded Trading
 Co., Ltd.
                      303,115,000                       300,615,0   303,115,000                       300,615,
       Total                         -2,500,000.00                                  -2,500,000.00
                               .00                          00.00           .00                        000.00


2. Investment in non-trading equity instruments
                                                                       The
                                                                     amount       Reasons for
                                                                                                     Reasons for
                             Dividend                               of other      measuring at
                                                                                                     transferring
                              income      Accu                       compre      fair value and
                                                                                                         other
                             recognize    mula    Accumulated        hensive    whose changes
           Item                                                                                     comprehensiv
                              d in the     ted       losses          income     are recognized
                                                                                                     e income to
                              current     gains                     transferr       in other
                                                                                                       retained
                               period                                 ed to     comprehensive
                                                                                                       earnings
                                                                    retained         income
                                                                    earnings
 Sunpower Technology        8,400,000.                                          Plan to hold for
 (Jiangsu) Co., Ltd.               00                                            the long term
 Shenzhen        Yuanzhi
 Ruixin New Generation
 Information
                             340,206.1                                          Plan to hold for
 Technology       Private
                                     3                                           the long term
 Equity      Investments
 Fund         Partnership
 (Limited Partnership)
 Jiangxi Nuclear Power                                                          Plan to hold for
 Co., Ltd.                                                                       the long term
 Shenzhen
                                                                                Plan to hold for
 Petrochemical        Oil                            2,500,000.00
                                                                                 the long term
 Products         Bonded

                            Notes to the Financial statements   Page 41
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                                                                       The
                                                                     amount       Reasons for
                                                                                                   Reasons for
                             Dividend                               of other      measuring at
                                                                                                   transferring
                              income       Accu                      compre      fair value and
                                                                                                       other
                             recognize     mula    Accumulated       hensive    whose changes
           Item                                                                                   comprehensiv
                              d in the      ted       losses         income     are recognized
                                                                                                   e income to
                              current      gains                    transferr       in other
                                                                                                     retained
                               period                                 ed to     comprehensive
                                                                                                     earnings
                                                                    retained         income
                                                                    earnings
 Trading Co., Ltd.
                             8,740,206.
          Total                                     2,500,000.00
                                    13


(XI) Investment properties
1. Investment properties measured using cost model
                                                Houses and
                       Item                                                        Total
                                                 buildings
        1. Original book value
        (1) Balance at the end of last year              9,708,014.96                 9,708,014.96
        (2) Increased amount in the current
        period
        (3) Reduced amount in the current
        period
        (4) Ending balance                               9,708,014.96                 9,708,014.96
        2. Accumulated depreciation and
        accumulated amortization
        (1) Balance at the end of last year              7,874,670.76                 7,874,670.76
        (2) Increased amount in the current
                                                           168,777.60                   168,777.60
        period
        (3) Reduced amount in the current
        period
        (4) Ending balance                               8,043,448.36                 8,043,448.36
        3. Provision for impairment
        (1) Balance at the end of last year
        (2) Increased amount in the current
        period
        (3) Reduced amount in the current
        period
        (4) Ending balance
        4. Book value
        (1) Ending book value                            1,664,566.60                 1,664,566.60
        (2) Book value at the end of last year           1,833,344.20                 1,833,344.20




                             Notes to the Financial statements   Page 42
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(XII) Fixed assets
1. Fixed assets and disposal of fixed assets
                                                                            Balance at the end of
                       Item                          Ending balance
                                                                                 last year
        Fixed assets                                      385,390,614.45           591,290,204.31
        Disposal of fixed assets(note)                   186,092,119.90
                       Total                              571,482,734.35           591,290,204.31


Note: On November 6, 2023, Shenzhen Nanshan Power Zhongshan Company received the Letter
on Matters Related to the Shutdown of Units of Shenzhen Nanshan Power (Zhongshan) Power Co.,
Ltd. Nanlang Power Plant (YNDLH [2023] No. 672) from Energy Bureau of Guangdong Province,
according to which, the Energy Bureau of Guangdong Province agreed on the shutdown of two
180MW gas-fired cogeneration units of Zhongshan Nanlang Power Plant. The relevant unit
equipment and other assets are planned to be externally disposed of and have been listed on
Shenzhen United Property and Equity Exchange in 2024; In addition, according to the latest
industrial planning of Zhongshan Cuiheng New District, Cuiheng New District Management
Committee paid for the acquisition and storage of the use rights of three parcels of state-owned
land of Shenzhen Nanshan Power Zhongshan Company located in Hengmen Industrial Zone,
Nanlang Street, Cuiheng New District, Zhongshan City (hereinafter referred to as "the Proposed
Acquisition and Storage Land"). On December 12, 2023, Shenzhen Nanshan Power Zhongshan
Company and Cuiheng New District Management Committee formally signed the State-owned
Land Use Right Recovery Agreement and Relocation Compensation Agreement. Assets related to
this matter, such as buildings, unit equipment and cogeneration projects under construction in
progress were transferred to the fixed assets to be disposed.




                              Notes to the Financial statements   Page 43
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements

2. Fixed assets
                                                                                                                        Electronic equipment
                     Item                Houses and buildings      Machinery equipment          Means of transport                                Total
                                                                                                                        and other equipment
        1. Original book value
        (1) Balance at the end of last
                                                424,154,183.71          2,725,092,344.93                 8,138,535.02         44,622,476.80    3,202,007,540.46
        year
        (2) Increased amount in the
                                                                             9,310,486.55                                        619,173.18        9,929,659.73
        current period
        -Purchase                                                                                                                478,923.62         478,923.62
        -Transfer construction in
                                                                             8,575,561.48                                        140,249.56        8,715,811.04
        progress
        -Others                                                                734,925.07                                                           734,925.07
        (3) Reduced amount in the
                                                129,266,768.52          1,091,448,053.55                 1,832,964.37            777,795.06    1,223,325,581.50
        current period
        -Disposal or scrapping                  129,266,768.52          1,091,448,053.55                 1,698,464.37            131,474.77    1,222,544,761.21
        ---Others                                                                                         134,500.00             646,320.29         780,820.29
        (4) Ending balance                      294,887,415.19          1,642,954,777.93                 6,305,570.65         44,463,854.92    1,988,611,618.69
        2. Accumulated depreciation
        (1) Balance at the end of last
                                                294,778,055.90          1,912,442,654.22                 5,011,870.15         33,757,207.10    2,245,989,787.37
        year
        (2) Increased amount in the
                                                  9,243,346.13              17,124,749.92                1,130,492.64          2,542,508.49      30,041,097.18
        current period
        -Provision                                9,243,346.13              16,463,317.36                1,130,492.64          2,491,389.64      29,328,545.77
        -Others                                                                661,432.56                                         51,118.85         712,551.41
        (3) Reduced amount in the
                                                 99,818,329.32            689,937,238.61                 1,426,368.64            683,071.08     791,865,007.65
        current period
        -Disposal or scrapping                   99,818,329.32            689,937,238.61                 1,305,318.64             91,569.67     791,152,456.24



                                                           Notes to the Financial statements   Page 44
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements

                                                                                                                        Electronic equipment
                     Item                Houses and buildings      Machinery equipment          Means of transport                                Total
                                                                                                                        and other equipment
        -Others                                                                                           121,050.00             591,501.41         712,551.41
        (4) Ending balance                      204,203,072.71          1,239,630,165.53                 4,715,994.15         35,616,644.51    1,484,165,876.90
        3. Provision for impairment
        (1) Balance at the end of last
                                                 22,573,968.96            341,888,879.56                   53,176.48             211,523.78     364,727,548.78
        year
        (2) Increased amount in the
                                                                                33,800.00                                                            33,800.00
        current period
        -Others                                                                 33,800.00                                                            33,800.00
        (3) Reduced amount in the
                                                  4,721,921.12            240,950,500.32                                          33,800.00     245,706,221.44
        current period
        -Disposal or scrapping                    4,721,921.12            240,950,500.32                                                        245,672,421.44
        ---Others                                                                                                                 33,800.00          33,800.00

        (4) Ending balance                       17,852,047.84            100,972,179.24                                         177,723.78     119,055,127.34
                                                                                                           53,176.48
        4. Book value
        (1) Ending book value                    72,832,294.64            302,352,433.16                 1,536,400.02          8,669,486.63     385,390,614.45
        (2) Book value at the end of
                                                106,802,158.85            470,760,811.15                 3,073,488.39         10,653,745.92     591,290,204.31
        last year




                                                           Notes to the Financial statements   Page 45
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
3. Fixed assets without the certificate of title
                                                                          Reasons for failure to acquire
                    Item                           Book value
                                                                             the certificate of title
        Circulating water pump
                                                           719,232.91       Formalities not completed
        workshop

        Cooling tower                                      673,259.25       Formalities not completed
        Complex building                                   443,246.19       Formalities not completed
        Cafeteria of complex
                                                           208,735.47       Formalities not completed
        building
        Chemical water treatment
                                                           232,960.00       Formalities not completed
        workshop
        Mail room at the main
                                                             47,264.13      Formalities not completed
        entrance
                   Total                                 2,324,697.95


4. Disposal of fixed assets
                   Item                              Ending balance               Balance at the end of last year
      Houses and buildings                                   24,723,346.08
      Machinery equipment                                  160,560,314.62
      Means of transport                                         16,103.45
      Construction in progress -
                                                                 792,355.75
      cogeneration projects
                   Total                                    186,092,119.90
For details, please see Note V (XII) 1. Fixed assets and disposal of fixed assets of the notes to the
financial statements.
(XIII) Construction in progress
1. Construction in progress
                                                                                    Balance at the end of last
                           Item                            Ending balance
                                                                                              year
        Construction in progress                                   3,448,855.10                  4,861,062.16
                           Total                                   3,448,855.10                  4,861,062.16




                                   Notes to the Financial statements   Page 46
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
2. Construction in progress
                                    Ending balance                      Balance at the end of last year
                                                                                  Provision
            Item                         Provision
                           Book                          Book          Book          for
                                            for                                                Book value
                          balance                        value        balance     impairme
                                        impairment
                                                                                      nt
        Combined
        heat and
                                                                    60,307,712     59,515,3
        power                                                                                  792,355.75
        project(note                                                       .44        56.69
        )
        Oil to gas                       9,441,286.                  9,441,286.    9,441,28
                        9,441,286.39
        project                                 39                          39         6.39
        Technical
                                         1,605,000.     2,475,87     5,673,706.    1,605,00     4,068,706.
        transformati    4,080,877.62
                                                00          7.62            41         0.00            41
        on project
                                                        972,977.
        Others            972,977.48
                                                              48
                        14,495,141.4    11,046,286      3,448,85    75,422,705     70,561,6     4,861,062.
            Total
                                   9           .39          5.10           .24        43.08            16


Note: for the cogeneration projects to be transferred to the fixed assets to be disposed due to planned
land acquisition and storage, please see Note V (XII) 1. Fixed assets and disposal of fixed assets of the
notes to the financial statements for details.




                               Notes to the Financial statements   Page 47
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements




3. Changes in the current period of important construction in progress
                                                                                                                                                   Includ
                                                                                                              Proport                                ing:    Intere
                                                                                                               ion of                              amoun        st
                                                                 Amount                                       cumula                                 t of    capita
                                                                                  Other                                            Accumulate
                                                Increased      transferred                                      tive    Projec                     interes   lizatio
                                 Balance at                                   decreases in                                         d amount of                         Sourc
  Project         Budget                       amount in         to fixed                       Ending        project      t                           t     n rate
                                 the end of                                    the current                                           interest                          es of
   name           amount                       the current    assets in the                     balance        invest   progre                     capital   in the
                                  last year                                      period                                            capitalizatio                       funds
                                                  period         current                                        ment    ss (%)                     ization   curren
                                                                                 (note)                                                  n
                                                                  period                                         to                                 in the      t
                                                                                                              budget                               curren    period
                                                                                                                (%)                                    t       (%)
                                                                                                                                                   period
                                                                                                                                                                        Self-
Combined                                                                                                                                                               financ
heat and        60,000,000.     60,307,712.                                   60,307,712.                                100.0     6,476,185.4                           ing
                                                                                                              100.51
power                   00              44                                            44                                     0               6                           and
project                                                                                                                                                                borro
                                                                                                                                                                        wing
                                                                                                                                                                        Self-
Oil to gas                      9,441,286.3                                                   9,441,286.3
                                                                                                                                                                       financ
project                                   9                                                             9
                                                                                                                                                                          ed
                60,000,000.     69,748,998.                                   60,307,712.     9,441,286.3                          6,476,185.4
   Total
                        00              83                                            44                9                                    6


Note: For details, please see Note V (XII) 1. Fixed assets and disposal of fixed assets to the notes to the financial statements




                                                                Notes to the Financial statements   Page 48
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(XIV) Right-of-use assets
1. Right-of-use assets
                  Item                    Houses and buildings                        Total
    I. Original book value
    1. Beginning balance                             16,322,014.37                      16,322,014.37
    2. Increased amount in the
    current period
    3. Decreased amount in the
    current period
    4. Ending balance                                16,322,014.37                      16,322,014.37
    II. Accumulated depreciation
    1. Beginning balance                              8,614,396.47                       8,614,396.47
    2. Increased amount in the
                                                      5,440,671.48                       5,440,671.48
    current period
    (1) Provision                                     5,440,671.48                       5,440,671.48
    3. Decreased amount in the
    current period
    4. Ending balance                                14,055,067.95                      14,055,067.95
    III. Provision for impairment
    IV. Book value
    1. Ending book value                              2,266,946.42                       2,266,946.42
    2. Beginning book value                           7,707,617.90                       7,707,617.90
Note: right-of-use assets for the current period refer to the 16th and 17th floors of the Hantang
Building Property for office under the Company's operating leases.


(XV) Intangible assets
1. Intangible assets
                                      Land use
                 Item                                   Patent             Software            Total
                                        right
    1. Original book value
    (1) Balance at the end of
                                    60,813,994.76      138,625.07     3,782,983.49       64,735,603.32
    last year
    (2) Increased amount in
                                                                            75,575.23          75,575.23
    the current period
    -Purchase                                                               75,575.23          75,575.23
    (3) Reduced amount in the
    current period
    -Others
    (4) Ending balance              60,813,994.76      138,625.07     3,858,558.72       64,811,178.55
    2. Accumulated
    amortization
    (1) Balance at the end of
                                    41,265,885.15       31,817.30     3,638,545.75       44,936,248.20
    last year
    (2) Increased amount in
                                      519,956.44        17,347.80           51,997.08         589,301.32
    the current period
    -Provision                        519,956.44        17,347.80           51,997.08         589,301.32
    (3) Reduced amount in the
    current period

                             Notes to the Financial statements   Page 49
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                                        Land use
                 Item                                      Patent             Software          Total
                                          right
    —Disposal
    (4) Ending balance               41,785,841.59         49,165.10      3,690,542.83      45,525,549.52
    3. Provision for
    impairment
    (1) Balance at the end of
    last year
    (2) Increased amount in
    the current period
    -Provision
    (3) Reduced amount in the
    current period
    —Disposal
    (4) Ending balance
    4. Book value
    (1) Ending book value            19,028,153.17         89,459.97          168,015.89    19,285,629.03
    (2) Book value at the end
                                     19,548,109.61        106,807.77          144,437.74    19,799,355.12
    of last year

2. Land use right without the certificate of title
                                                                                   Reasons for failure to
                        Item                              Book value               acquire the certificate
                                                                                          of title
        Land use rights for docks and                                                 Formalities not
                                                                    372,219.18
        pipeline corridors                                                              completed
                        Total                                       372,219.18

(XVI) Long-term deferred expenses
                                             Increased     Amortization
                         Balance at
                                            amount in        amount in           Other         Ending
            Item         the end of
                                            the current     the current        reductions      balance
                          last year
                                               period         period
        Renovation
                        1,219,129.18                        497,331.12                       721,798.06
        costs
        Major
        repair                            3,588,718.72      418,683.85                       3,170,034.87
        expenses
            Total       1,219,129.18      3,588,718.72      916,014.97                       3,891,832.93


(XVII) Deferred tax assets and deferred tax liabilities
1. Deferred tax assets not offset


                                           Ending balance                Balance at the end of last year
                 Item                Deductible                           Deductible
                                                       Deferred tax                         Deferred tax
                                     temporary                            temporary
                                                          assets                               assets
                                     differences                          differences


                                Notes to the Financial statements   Page 50
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements

                                           Ending balance                  Balance at the end of last year
               Item                  Deductible                            Deductible
                                                       Deferred tax                         Deferred tax
                                     temporary                             temporary
                                                          assets                               assets
                                     differences                           differences
        Provision for bad
                                     3,649,109.93        547,366.49        3,649,109.93        547,366.49
        debts
        Fair value changes
        of other
                                     2,500,000.00        625,000.00        2,500,000.00        625,000.00
        investments in
        equity instruments
               Total                 6,149,109.93      1,172,366.49        6,149,109.93      1,172,366.49

2. Details of unrecognized deferred tax assets
                                                                                    Balance at the end of
                         Item                           Ending balance
                                                                                         last year
        Deductible temporary differences                        547,773,352.17               545,598,991.76

        Deductible losses                                       542,749,124.79               560,445,722.73

                        Total                                  1,090,522,476.96            1,106,044,714.49

3. The deductible losses for which deferred tax assets have not been recognized will expire in
the following years
                                                                                    Balance at the end of
                       Year                            Ending balance
                                                                                         last year
      2023                                                                                 37,872,366.36
      2024                                                          5,350,767.06             5,350,767.06
      2025                                                          3,443,492.77             3,443,492.77
      2026                                                    174,438,579.72              156,697,644.85
      2027                                                    187,111,062.55              180,144,071.23
      2028                                                     62,579,931.14
      2029                                                                                   6,019,123.66
      2030                                                     26,803,142.56               66,557,231.23
      2031                                                     15,911,576.84               34,136,713.56
      2032                                                     50,074,067.52               70,224,312.01
      2033                                                     17,036,504.63
                      Total                                   542,749,124.79              560,445,722.73



(XVIII) Other non-current assets
                                                                                    Balance at the end of
                         Item                           Ending balance
                                                                                         last year
        Land acquisition, storage,
        production and business                                     36,157,735.24
        suspension, employee

                                Notes to the Financial statements    Page 51
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                                                                                   Balance at the end of
                        Item                           Ending balance
                                                                                        last year
        compensation and relocation
        expenses, etc. (Note)
        Project quality guarantee                                                           5,371,398.18
                       Total                                       36,157,735.24            5,371,398.18

Note: according to the latest industrial plan of Zhongshan Cuiheng New District, Cuiheng New
District Management Committee has acquired three state-owned land use rights of Shenzhen
Nanshan Power Zhongshan Company located in Hengmen Industrial Zone, Nanlang Street,
Cuiheng New District, Zhongshan (hereinafter referred to as "the Proposed Acquisition and
Storage Land") with compensation. On December 15, 2023, Shenzhen Nanshan Power Zhongshan
Company and Cuiheng New District Management Committee formally signed the State-owned
Land Use Right Recovery Agreement and Relocation Compensation Agreement. On December 18,
2023, Shenzhen Nanshan Power Zhongshan Company received the first installment of RMB
104,000,000 in the first phase of compensation, which was recorded in other non-current liabilities.
The expenses incurred by the Company in fulfilling the land acquisition and storage, such as the
loss of demolition of houses and other appurtenances, relocation expenses, employee
compensation paid during the suspension of production and business operations were recognized
in other non-current assets.


(XIX) Assets with restricted ownership or use rights

                                Ending balance                          Balance at the end of last year
       Item                                  Restr     Restr                                  Restr
                   Book            Book                              Book         Book                 Restri
                                             icted     iction                                 icted
                  balance          value                            balance       value                ctions
                                             type         s                                    type
     Monetar     5,453,862.      5,453,862. Guar       Freez       27,474,59 27,474,59 Guar Freez
     y funds            93               93 antee         e              4.34         4.34 antee          e
                 5,453,862.      5,453,862.                        27,474,59 27,474,59
       Total
                        93               93                              4.34         4.34


(XX) Short-term borrowings
                                Short-term borrowings classification
                                                                                   Balance at the end of
                       Item                            Ending balance
                                                                                        last year
        Credit loan                                         270,933,506.37               878,150,962.14
        Pledge loan                                             70,000,000.00
        Short term loan interest payable                           304,380.35               1,806,895.30
                       Total                                341,237,886.72               879,957,857.44
Note: the Company used its own patent rights pledge a loan of RMB 70 million from Shanghai
Pudong Development Bank Shenzhen Branch.


(XXI) Notes payable
                                                                                   Balance at the end of
                      Type                           Ending balance
                                                                                        last year
        Bank acceptance bill                                                             137,298,902.17


                               Notes to the Financial statements    Page 52
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                                                                                     Balance at the end of
                       Type                             Ending balance
                                                                                          last year
                       Total                                                                137,298,902.17


(XXII) Accounts payable
1. Accounts payable
                                                                                     Balance at the end of
                           Item                          Ending balance
                                                                                          last year
        Labor and service payments                              3,435,338.05                  3,997,800.00
        Electricity bill                                          896,652.87                    937,613.72
        Payment for materials                                          10,175.58                292,422.50
                           Total                                4,342,166.50                  5,227,836.22
At the end of the reporting period, the Company had no important accounts payable aged over one
year.


2. Top five accounts payable
                                                                                       Proportion to the
                    Entity name                            Book balance                accounts payable
                                                                                         balance (%)
        Shenyang LES Power Service Co.,
                                                                      1,558,834.05                   35.90
        Ltd.
        Nanjing Pengpai Power
                                                                      1,265,040.00                   29.13
        Engineering Technology Co., Ltd.
        Shenzhen Power Supply Bureau
                                                                       896,652.87                    20.65
        Co., Ltd.
        Nanjing Fire Fighting Equipment
                                                                       316,550.00                     7.29
        Co., Ltd.
        Shenzhen Power Transmission and
        Transformation Engineering Co.,                                128,250.00                     2.96
        Ltd.
                           Total                                      4,165,326.92                   95.93


(XXIII) Employee compensation payable
1. Employee compensation payable
                         Balance at the                Increased             Decreased
                                                                                                Ending
              Item        end of last                amount in the         amount in the
                                                                                                balance
                             year                    current period        current period
       Short-term
                         29,296,815.07                78,753,525.70         94,050,214.20    14,000,126.57
       compensation
       Post-employment
       benefits- defined
                                                      17,126,112.08         17,126,112.08
       contribution
       plans
       Dismissal
                                                      32,238,856.00                          32,238,856.00
       benefits (note)
       Other benefits
       due within one
       year

                                  Notes to the Financial statements     Page 53
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                             Balance at the         Increased            Decreased
                                                                                              Ending
              Item            end of last         amount in the        amount in the
                                                                                              balance
                                 year             current period       current period
              Total          29,296,815.07        128,118,493.78       111,176,326.28      46,238,982.57
Note: for the employee compensation matters relating to land acquisition and storage of Shenzhen
Nanshan Power Zhongshan Company, please refer to the Note V (XVIII).


2. Short-term compensation
                                                      Increased           Decreased
                               Balance at the                                                 Ending
               Item                                 amount in the       amount in the
                              end of last year                                                balance
                                                    current period      current period
        (1) Salaries,
        bonuses,
                                28,806,319.36                                              13,904,838.47
        allowances and                              51,335,303.97       66,236,784.86
        subsidies
        (2) Employee
                                    107,277.20
        welfare fees                                  9,551,427.64       9,658,704.84
        (3) Social
        insurance
                                                      5,862,608.52       5,862,608.52
        premiums
        Including:
        medical insurance
                                                      5,180,471.81       5,180,471.81
        premiums
        Work injury
        insurance
                                                       324,480.70            324,480.70
        premium
        Maternity
        insurance
                                                       357,656.01            357,656.01
        premium
        (4) Housing
        provident fund                              10,248,597.80       10,248,597.80
        (5) Trade union
        funds and
        employee                    383,218.51
                                                      1,755,587.77       2,043,518.18         95,288.10
        education
        expenses
        (6) Short-term
        paid absence from
        work
        (7) Short-term
        profit sharing
        plan
        (8) Others

               Total            29,296,815.07
                                                    78,753,525.70       94,050,214.20      14,000,126.57

3. Defined contribution plans list
                                     Balance at         Increased          Decreased
                                                                                              Ending
                 Item                the end of       amount in the      amount in the
                                                                                              balance
                                      last year       current period     current period
        Basic endowment
                                                      11,538,360.11
        insurance                                                        11,538,360.11
        Unemployment
        insurance premiums                               140,457.97           140,457.97
                             Notes to the Financial statements     Page 54
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                                         Balance at        Increased          Decreased
                                                                                                   Ending
                  Item                   the end of      amount in the      amount in the
                                                                                                   balance
                                          last year      current period     current period
        Enterprise annuity
        payment                                           5,447,294.00       5,447,294.00
                  Total
                                                        17,126,112.08       17,126,112.08

(XXIV) Taxes payable
                                                                                      Balance at the end of
                       Tax items                        Ending balance
                                                                                           last year
        Value-added tax                                        2,282,514.44                     2,068,236.33
        Personal income tax                                      620,879.50                     1,825,992.00
        Stamp duty                                               160,105.10                       170,883.69
        Urban        maintenance             and
                                                                      15,063.61                      2,464.98
        construction tax
        Education surcharge                                            6,404.48                       630.08
        Local education surcharge                                      4,346.16                       420.06
        Property tax                                                                              996,166.86
        Other taxes                                                       17.18                    42,872.73
                          Total                                3,089,330.47                     5,107,666.73

(XXV) Other payables
                                                                                    Balance at the end of last
                          Item                          Ending balance
                                                                                              year
        Interest payable
        Dividends payable
        Other payables                                        13,973,447.42                    22,997,466.80
                          Total                               13,973,447.42                    22,997,466.80


1. Other payables
(1) Presented according to nature of payment
                                                                                       Balance at the end of
                          Item                           Ending balance
                                                                                            last year
        Guarantee                                                    8,993,154.68               6,973,652.54
        Labor and service fees                                       1,522,715.43               7,525,391.28
        Others                                                       3,457,577.31               8,498,422.98
                          Total                                 13,973,447.42                  22,997,466.80


(2) Top five other payables
                                                                                        Proportion to the
                        Entity name                          Book balance                other accounts
                                                                                       payable balance (%)

                                 Notes to the Financial statements     Page 55
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                                                                                      Proportion to the
                         Entity name                         Book balance              other accounts
                                                                                     payable balance (%)
        Shenzhen Nangang Power Engineering
                                                                 4,760,000.00                       34.06
        Co., Ltd.
        Zike Co., Ltd.                                           1,872,500.00                       13.40
        Shanghai Power Equipment Research
                                                                 1,773,515.02                       12.69
        Institute Co., Ltd.
        Zhongshan Nanlang Construction and
                                                                      860,190.12                     6.16
        Development Company
        Shenzhen Trony New Energy
                                                                      458,593.39                     3.28
        Technology Co., Ltd.
                            Total                                    9,724,798.53                   69.59


(XXVI) Non-current liabilities maturing within one year
                                                                                    Balance at the end of
                          Item                          Ending balance
                                                                                         last year
        Long-term borrowings due within
                                                               1,399,170.93
        one year
        Lease liabilities due within one
                                                               2,556,609.50                  6,279,115.44
        year
        Less: unrecognized financing
                                                                      29,453.98                264,995.49
        expenses
                         Total                                 3,926,326.45                  6,014,119.95


(XXVII) Other current liabilities
                                                                                    Balance at the end of
                          Item                          Ending balance
                                                                                         last year
        Value-added tax pending charge-
                                                                                                 21,600.00
        off
                         Total                                                                   21,600.00


(XXVIII) Long-term borrowings
                                                                                    Balance at the end of
                          Item                          Ending balance
                                                                                         last year
        Credit loan                                           58,829,426.30                 28,019,758.68
                         Total                                58,829,426.30                 28,019,758.68


(XXIX) Lease liabilities
1. Lease liabilities details
                                                                                    Balance at the end of
                         Item                            Ending balance
                                                                                         last year
        Lease liabilities                                                                    2,291,614.01
        Less: unrecognized financing                                                             29,453.98

                                 Notes to the Financial statements     Page 56
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                                                                                Balance at the end of
                        Item                             Ending balance
                                                                                     last year
        expenses

                        Total                                                             2,262,160.03


2. Lease liabilities maturity analysis
                                                                                Balance at the end of
                        Item                             Ending balance
                                                                                     last year
        1-2 years                                                                         2,262,160.03
                        Total                                                             2,262,160.03


(XXX) Estimated liabilities
                                            Increased
                       Balance at the                         Decreased
                                           amount in                            Ending
            Item        end of last                         amount in the                     Causes
                                           the current                          balance
                           year                             current period
                                              period
        Others         15,000,000.00                                         15,000,000.00
           Total       15,000,000.00                                         15,000,000.00


Note: on November 29, 2013, Shenzhen Xiefu and Jiahua Construction Products (Shenzhen) Co.,
Ltd. ("Jiahua Construction") signed a supplementary agreement to the equity transfer agreement in
respect of the historical issues in relation to the vesting and division of interests in Yapojiao Wharf
between Shenzhen Xiefu, Huidong Xiefu and the Huidong Renshan Town Government and its
subordinate Renshan Group. In order to solve the historical issues, Shenzhen Xiefu deposited
RMB 12,500,000.00 into the escrow account as guarantee. In addition, Shenzhen Xiefu pledged its
20% equity interest in Huidong Xiefu to Jiahua Construction for a period of two years and the
amount of the pledge secured claim was not more than RMB 15,000,000.00. The Company
expected a loss of RMB 27,500,000.00 in relation to this matter. The balance at the end of 2019
was RMB 26,646,056.28.
On November 12, 2020, Huidong Xiefu and other relevant parties reached a preliminary
settlement agreement on the land dispute matter in estimated liabilities. Shenzhen Xiefu
accordingly reversed the estimated liabilities by RMB 6,584,816.78. In 2020, Shenzhen Xiefu
borne the lawyer and other expenses of RMB 137,731.22 for this matter according to the agreed
ratio, and the estimated liabilities decreased by a total of RMB 6,722,548.00 in 2020. The balance
of RMB 19,923,508.28 is the repayment obligation that is likely to occur before the above matters
are completed.
On November 12, 2020, Huizhou Commercial Construction and Development Corporation and
Huidong Xiefu Port Comprehensive Development Co., Ltd. signed the Debt Transfer Agreement
and the execution and settlement record of the Huidong County People's Court. The historical
issues left over from the ownership and division of the rights and interests of Yapojiao Wharf were
partially resolved. On January 20, 2021, Shenzhen Xiefu received a refund of RMB 5,000,000.00
from the co-managed account. Shenzhen Xiefu accordingly reversed the estimated liabilities by
RMB 4,573,508.28. In 2021, Shenzhen Xiefu borne the lawyer and other expenses of RMB
350,000 for this matter according to the agreed ratio, and the estimated liabilities decreased by a
total of RMB 4,923,508.28 in 2021. The balance of RMB 15,000,000.00 is the repayment
obligation that is likely to occur before the above matters are completed.




                               Notes to the Financial statements   Page 57
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(XXXI) Deferred income
                                              Increased
                          Balance at the                      Decreased
                                              amount in                         Ending        Cause
            Item           end of last                      amount in the
                                             the current                        balance         s
                              year                          current period
                                                period
       Government
                           82,145,596.6      3,690,000.0     17,966,248.5     67,869,348.0
       subsidies(Note
                                      0                0                3                7
       )
                           82,145,596.6      3,690,000.0     17,966,248.5     67,869,348.0
            Total
                                      0                0                3                7


Note: for the government subsidies recognized in the current profit or loss, please refer to Note
VIII (I) of the notes to the financial statements.
(XXXII) Other non-current liabilities
                                                                              Balance at the end of
                        Item                         Ending balance
                                                                                   last year
        Progress payment for land
                                                           104,000,000.00
        acquisition and storage(Note)
        Interests of other partners in the
                                                                 45,112.54                 47,511.72
        partnership
                        Total                              104.045,112.54                  47,511.72
Note: for the transfer matters relating to the land acquisition and storage and the shutdown and
retirement of unit assets of Shenzhen Nanshan Power Zhongshan Company, please refer to the
Note V (XVIII).


(XXXIII) Share capital
                                     Increase (+) and decrease (-) in the current
                                                       period
                  Balance at the    Issuan Bonu Provident
        Item                                                                          Ending balance
                 end of last year    ce of      s       fund       Other Subt
                                     new     share conversio          s      otal
                                    shares      s         n
        Total
        share    602,762,596.00                                                       602,762,596.00
          s

(XXXIV) Capital reserves
                                                     Increased         Decreased
                                 Balance at the
                Item                               amount in the     amount in the    Ending balance
                                end of last year
                                                   current period    current period
        Capital premium
                                233,035,439.62                                        233,035,439.62
        (equity premium)
        Other capital
                                129,735,482.48                                        129,735,482.48
        reserve
                Total           362,770,922.10                                        362,770,922.10




                             Notes to the Financial statements   Page 58
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements


(XXXV) Other comprehensive income
                                                                                          The current period amount
                                                             Amou           Less:               Less:
                                                                nt     recognized in       recognized in
                                                             before         other               other
                            Balance at the                                                                                            Attributabl
                                              Beginning      incom    comprehensive       comprehensive       Less:    Attributable                    Ending
              Item           end of last                                                                                                  e to
                                               balance        e tax    income in the       income in the     income     to parent                      balance
                                year                                                                                                   minority
                                                               for    previous period     previous period      tax      company
                                                                                                                                      shareholde
                                                               the    and transferred     and transferred   expenses    after tax
                                                                                                                                      rs after tax
                                                             curren     to profit and        to retained
                                                                t        loss in the      earnings in the
                                                             period    current period      current period
        1. Other
        comprehensive
        income that
        cannot be
        reclassified into
        profit or loss
        Including:
        remeasure
        changes in
        benefit plans
        Other
        comprehensive
        income that
        cannot be
        transferred to
        profit or loss
        under the equity
        method
        Fair value
        changes of          -2,500,000.00    -2,500,000.00                                                                                           -2,500,000.00
        other



                                                             Notes to the Financial statements   Page 59
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements


                                                                                        The current period amount
                                                           Amou           Less:               Less:
                                                              nt     recognized in       recognized in
                                                           before         other               other
                          Balance at the                                                                                            Attributabl
                                            Beginning      incom    comprehensive       comprehensive       Less:    Attributable                    Ending
             Item          end of last                                                                                                  e to
                                             balance        e tax    income in the       income in the     income     to parent                      balance
                              year                                                                                                   minority
                                                             for    previous period     previous period      tax      company
                                                                                                                                    shareholde
                                                             the    and transferred     and transferred   expenses    after tax
                                                                                                                                    rs after tax
                                                           curren     to profit and        to retained
                                                              t        loss in the      earnings in the
                                                           period    current period      current period
        investments in
        equity
        instruments
        Total other
        comprehensive      -2,500,000.00   -2,500,000.00                                                                                           -2,500,000.00
        income




                                                           Notes to the Financial statements   Page 60
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements


(XXXVI) Special reserves
                               Balance at the      Increased           Decreased
                                                                                          Ending
              Item              end of last      amount in the       amount in the
                                                                                          balance
                                   year          current period      current period
        Safety production
                                                  13,270,901.66      13,270,901.66
        costs
              Total                               13,270,901.66      13,270,901.66
Note: in accordance with the Management Measures for the Withdrawal and Use of Enterprise
Safety Production Costs (CZ [2022] No. 136) (released on December 12, 2022), the Company
withdrew safety production costs and included them in the current profit or loss, and transferred
them to special reserve at the same time.


(XXXVII) Surplus reserves
                                                   Increased           Decreased
                               Balance at the
              Item                               amount in the       amount in the    Ending balance
                              end of last year
                                                 current period      current period
        Statutory surplus
                              310,158,957.87                                          310,158,957.87
        reserve
        Discretionary
                               22,749,439.73                                           22,749,439.73
        surplus reserve
              Total           332,908,397.60                                          332,908,397.60

(XXXVIII) Undistributed profits
                                                          The current period     Amount in previous
                             Item
                                                               amount                period
        Undistributed profits at the end of last year
                                                               159,187,979.14         319,351,219.81
        before adjustments
        Adjustments to the total amount of the
        undistributed profits at the beginning of the
        year (increase +, decrease -)
        Undistributed profits at the beginning of
                                                               159,187,979.14         319,351,219.81
        the year after adjustments
        Plus: net profit attributable to owners of
                                                                  4,158,797.10        -160,163,240.67
        parent company for the current period
        Less: withdrawal of statutory surplus
        reserve
        Dividends payable on ordinary shares
        Ending undistributed profits                           163,346,776.24         159,187,979.14

(XXXIX) Operating revenue and operating costs
                            The current period amount                Amount in previous period
           Item
                            Revenue               Cost               Revenue              Cost
        Main
                       588,370,569.20        581,180,842.37       692,615,690.26      804,420,389.38
        business
        Other
                            1,409,621.51          261,701.61        1,611,967.02          258,934.10
        business
           Total       589,780,190.71        581,442,543.98       694,227,657.28      804,679,323.48



                              Notes to the Financial statements   Page 61
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
1. Break down by product or service type
                           The current period amount                   Amount in previous period
           Item
                          Revenue                  Cost               Revenue             Cost
        Power
        production
                        562,688,722.91        572,117,240.68        650,670,587.61   779,733,245.77
        and sales
        revenue
        Revenue
        from
        integrated       25,681,847.29           9,063,601.69        41,945,102.65     24,687,143.61
        energy
        services
        Other
                          1,409,620.51             261,701.61         1,611,967.02        258,934.10
        revenue
           Total        589,780,190.71        581,442,543.98        694,227,657.28   804,679,323.48


2. By region

                           The current period amount                   Amount in previous period
           Item
                          Revenue                  Cost               Revenue             Cost
        Domestic        589,780,190.71        581,442,543.98        694,227,657.28   804,679,323.48
           Total        589,780,190.71        581,442,543.98        694,227,657.28   804,679,323.48


3. Revenue broken down by time of transfer of goods or services
                                                   The current period           Amount in previous
                       Item
                                                        amount                      period
        Recognize revenue at a certain
                                                          564,098,343.42              652,282,554.63
        time point
        Recognize revenue at a certain
                                                           25,681,847.29               41,945,102.65
        time point
                       Total                              589,780,190.71              694,227,657.28


(XL) Taxes and surcharges
                                                   The current period           Amount in previous
                       Item
                                                        amount                      period
        Property tax                                         2,241,783.87               2,254,621.19
        Land use tax                                            887,196.02                761,201.97
        Stamp duty                                              542,870.30                827,734.86
        Urban maintenance and
                                                                653,636.44                881,150.58
        construction tax
        Education surcharge                                     277,505.45                376,909.09
        Local education surcharge                               185,003.66                251,272.77
        Environmental protection tax                               8,230.82                32,638.18


                               Notes to the Financial statements   Page 62
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                                                   The current period           Amount in previous
                       Item
                                                        amount                      period
        Vehicle and vessel tax                                      3,390.00               15,821.56
                       Total                                 4,799,616.56               5,401,350.20

(XLI) Selling and distribution expenses
                                                    The current period          Amount in previous
                       Item
                                                         amount                     period
        Employee compensation                                 1,884,492.17                273,048.37
        Travel expenses                                        363,759.10
        Office expenses                                        250,648.83
        Entertainment expenses                                 160,201.41                  13,684.45
        Agency fee                                             141,603.76                  45,050.50
        Others                                                     31,043.38               43,272.46
                       Total                                  2,831,748.65                375,055.78


(XLII) G&A expenses
                                                                                Amount in previous
                       Item                    The current period amount
                                                                                    period
        Employee compensation                               29,928,766.04              49,552,978.78
        Depreciation cost                                   15,161,467.11              12,727,414.30
        Agency fee                                            2,506,646.25              2,917,219.44
        Entertainment expenses                                1,500,934.74              2,262,676.26
        Water, electricity and property
                                                              1,094,236.61              1,066,655.06
        management fees
        Repair costs                                               815,123.18             438,047.18
        Communication and information
                                                                   744,919.13             632,219.43
        fees
        Travel expenses                                            702,232.98             346,228.17
        Vehicle usage fee                                          607,305.89           1,000,874.34
        Office expenses                                            572,337.65             566,218.06
        Board of Directors fees                                    472,695.27             458,825.47
        Greening and cleaning fees                                 326,335.65             207,689.97
        Rental fees                                                291,561.03             326,066.00
        Stock related fee                                          114,895.51             512,986.66
        Amortization of intangible assets                           65,558.04              76,716.36
        Others                                                3,425,581.79              6,006,535.06
                       Total                                58,330,596.87              79,099,350.54


                               Notes to the Financial statements    Page 63
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements


(XLIII) R&D expenses

                                                                               Amount in previous
                      Item                    The current period amount
                                                                                   period
        Employee compensation                              24,140,938.27              23,134,437.76
        Depreciation cost                                    1,705,020.54              1,822,436.62
        Others                                                    993,953.93             690,660.01
                      Total                                26,839,912.74              25,647,534.39

(XLIV) Financial expenses
                                                   The current period          Amount in previous
                      Item
                                                        amount                     period
        Interest expenses                                  18,400,119.58              40,218,036.98
        Less: interest income                               7,358,119.93               8,790,975.96
        Exchange losses (income
                                                                  -72,164.01            -460,083.33
        expressed with "-")
        Handling charges                                      344,806.25                 247,340.17
        Unrecognized amortization of
                                                              264,995.49                 928,484.64
        financing expenses
                      Total                                11,579,637.38              32,142,802.50

(XLV) Other benefits
1.Details of other income
                                                  The current period           Amount in previous
                      Item
                                                       amount                      period
        Government subsidies                                 44,431,212.00             9,033,196.38
        Personal tax handling charges
                                                                   74,677.51             299,897.34
        refund
                                                             44,505,889.51
                      Total                                                            9,333,093.72

2.Government subsidies included in other income
For information on the amount of government subsidies included in other income for the current
period, please see Note VIII (II) of the notes to the financial statements.

(XLVI) Investment income
                                                   The current period          Amount in previous
                       Item
                                                        amount                     period
        Investment income from financial
        assets held for trading during the                 18,538,064.54              58,227,971.21
        holding period
        Dividend income received from
        investments in equity instruments                   8,740,206.13               8,853,587.35
        during the holding period
        Income from long-term equity
        investments accounted for equity                    7,719,627.80               3,635,763.05
        method under the equity method


                              Notes to the Financial statements    Page 64
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                                                   The current period               Amount in previous
                       Item
                                                        amount                          period
                       Total                                34,997,898.47                  70,717,321.61


(XLVII) Losses from credit impairment
                                                    The current period              Amount in previous
                       Item
                                                         amount                         period
        Provision for bad debts of accounts
                                                        85,000.00                     -1,711,964.42
        receivable
        Provision for bad debts of other
                                                      1,105,348.40
        receivables
                       Total                          1,190,348.40                    -1,711,964.42


(XLVIII) Asset impairment loss
                                                    The current period              Amount in previous
                       Item
                                                         amount                         period
        Inventory depreciation loss and
        provision for impairment of                           -162,985.78                    -661,460.81
        contract performance cost
        Provision for impairment of fixed
                                                                                           -7,246,238.48
        assets
        Provision for impairment of
                                                                                           -1,038,734.63
        construction in progress
                       Total                                  -162,985.78                  -8,946,433.92

(XLIX) Gains from disposal of assets
                                                                                        Amount included
                                                                                        in non-recurring
                                          The current               Amount in
                   Item                                                                 gains and losses
                                         period amount            previous period
                                                                                          in the current
                                                                                              period
        Profits and losses on
        disposal of non-current             1,886,136.92                291,985.88          1,886,136.92
        assets
                  Total                     1,886,136.92                291,985.88          1,886,136.92

(L) Non-operating revenue
                                                                                        Amount included
                                                                                        in non-recurring
                                           The current              Amount in
                   Item                                                                 gains and losses
                                          period amount           previous period
                                                                                          in the current
                                                                                              period
        Power outage and
                                             5,522,309.24                                   5,522,309.24
        insurance compensation
        Payables that really cannot
                                             3,683,060.82                                   3,683,060.82
        be paid
        Government subsidies                                             39,600.00
        Others                               2,476,793.13                                   2,476,793.13
                   Total                    11,687,001.25                39,600.00         11,687,001.25

                              Notes to the Financial statements     Page 65
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements

(LI) Non-operating expenses
                                                                                       Amount included
                                         The current period          Amount in         in non-recurring
                   Item
                                              amount               previous period    gains and losses in
                                                                                      the current period
        Losses from damage or
        scrapping of non-current                   7,745.81           1,463,939.59              7,745.81
        assets
        External donations                                               10,000.00
        Others                                    58,370.42             717,844.64             58,370.42
                   Total                          66,116.23           2,191,784.23             66,116.23


(LII) Income tax expenses
1. Income tax expenses schedule
                                                    The current period           Amount in previous
                        Item
                                                         amount                      period
        Current income tax expenses
        Deferred income tax expenses                                                         -63,080.11
                       Total                                                                 -63,080.11

2. Adjustment process of accounting profit and income tax expenses
                                                                                     The current period
                                          Item
                                                                                          amount
        Total profit                                                                      -2,005,692.93
        Income tax expenses calculated at statutory [or applicable] tax
                                                                                            -300,853.94
        rate
        Impact of different tax rates applicable to subsidiaries                          -5,988,013.88
        Impact of adjusting prior periods' income taxes
        Impact of non-taxable revenue                                                     -1,233,275.33
        Impact of non-deductible costs, expenses and losses                                  276,028.61
        Impact of deductible losses on the use of unrecognized deferred
        tax assets in prior periods
        Impact of deductible temporary differences or deductible losses
        for which no deferred tax assets have been recognized in the                      11,272,101.45
        current period
        Changes in beginning deferred tax assets/liability balances due to
        tax rate adjustment
        Impact of additional deduction for R&D expenses                                   -4,025,986.91
        Income tax expenses


(LIII) Earnings per share
1. Basic earnings per share
Basic earnings per share is calculated by dividing the consolidated net profit attributable to
ordinary shareholders of the parent company by the weighted average of outstanding ordinary

                               Notes to the Financial statements    Page 66
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
shares of the Company:
                                                           The current period     Amount in previous
                             Item
                                                                amount                period
        Consolidated net profit attributable to
        ordinary shareholders of the parent                        4,158,797.10      -160,163,240.67
        company
        Weighted average of outstanding ordinary
                                                                 602,762,596.00       602,762,596.00
        shares of the Company
        Basic earnings per share                                        0.0069               -0.2657

2. Diluted earnings per share
                                                           The current period     Amount in previous
                             Item
                                                                amount                period
        Consolidated net profit attributable to
        ordinary shareholders of the parent                        4,158,797.10      -160,163,240.67
        company (diluted)
        Weighted average of outstanding ordinary
                                                                 602,762,596.00       602,762,596.00
        shares of the Company (diluted)
        Diluted earnings per share                                      0.0069               -0.2657


(LIV) Items of Statement of Cash Flows
1. Cash related to operating activities
(1) Other cash received related to operating activities
                                                           The current period     Amount in previous
                             Item
                                                                amount                period
        Income from government subsidies                          30,154,963.47         2,800,716.98
        Interest income                                            6,416,103.02         9,272,736.48
        Current accounts received, etc.                            9,200,800.64        42,010,090.88
                            Total                                 45,771,867.13        54,083,544.34


(2) Other cash paid related to operating activities
                                                           The current period         Amount in
                             Item
                                                                amount              previous period
        Expenses from payment period                              32,799,144.64        24,583,319.72
        Current accounts paid, etc.                                3,524,581.70         1,221,929.96
                            Total                                 36,323,726.34        25,805,249.68


2. Cash related to investing activities
(1) Other cash received related to investing activities
                                                           The current period         Amount in
                             Item
                                                                amount              previous period
        Received interest on current accounts
                                                                     344,800.00
        among related parties
                            Total                                    344,800.00

                             Notes to the Financial statements     Page 67
   Shenzhen Nanshan Power Co., Ltd.
   2023
   Notes to the Financial statements


   (2) Other cash payments related to investing activities
                                                               The current period          Amount in
                                  Item
                                                                    amount               previous period
              Deposit of financial assets held for trading
              and large certificates of deposit for cash              446,000,000.00       180,000,000.00
              payments
              Cash paid for disposal of assets                            393,066.79             9,000.00
                                  Total                               446,393,066.79       180,009,000.00


   3. Cash related to financing activities
   (1)Other cash paid related to financing activities
                                                               The current period          Amount in
                                  Item
                                                                    amount               previous period
              Note deposit                                                                  27,474,594.34
              Rental fees                                               6,314,826.00
                                 Total                                  6,314,826.00        27,474,594.34


   (2)Changes in liabilities arising from financing activities

                                   Increased amount in the            Decreased amount in the
               Balance at the
                                        current period                     current period         Ending
   Item         end of last
                                                   Non-cash             Cash         Non-cash     balance
                   year          Cash changes
                                                    changes            changes       changes
Lease
liabilities
(including                                                        6,314,826.0                    2,527,155.5
                8,276,279.98                        830,697.03                      264,995.49
those due                                                                   0                              2
within one
year)
Short-term
borrowing
s
                879,957,857.     341,933,506.3     5,575,880.9        886,229,35                 341,237,88
(including
                         44                  7               6              8.05                       6.72
those due
within one
year)
Long-term
                28,019,758.6                                      47,009,450.                    60,228,597.
borrowing                        79,160,420.53       57,868.77
                           8                                              75                             23
s
                916,253,896.     421,093,926.9     6,464,446.7        939,553,63                 403,993,63
  Total                                                                             264,995.49
                         10                  0               6              4.80                       9.47


   (LV) Supplementary information of Statement of Cash Flows
   1. Supplementary information of Statement of Cash Flows
                                                     The current period                Amount in previous
                 Supplementary information
                                                          amount                           period
              1. Adjusting net profit to cash flows from

                                  Notes to the Financial statements    Page 68
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                                                           The current period       Amount in previous
                 Supplementary information
                                                                amount                  period
        operating activities

        Net profit                                                  -2,005,692.93      -185,522,860.86
        Plus: losses from credit impairment                         -1,190,348.40         1,711,964.42
        Provision for asset impairment                                162,985.78          8,946,433.92
        Depreciation and amortization of
                                                                      168,777.60            175,707.60
        investment properties
        Depreciation of fixed assets                               29,328,545.77         31,258,029.09
        Depreciation of right-of-use assets                         5,440,671.48          8,614,396.47
        Amortization of intangible assets                             589,301.32            701,403.22
        Amortization of long-term deferred
                                                                      916,014.97            497,331.12
        expenses
        Amortization of deferred income                            -17,966,248.53        -6,324,373.49
        Losses from disposal of fixed assets,
        intangible assets and other long-term assets                -1,886,136.92          -291,985.88
        (income expressed with "-")
        Losses on write-off of fixed assets (income
                                                                        7,745.81          1,463,939.59
        expressed with "-")
        Losses from changes in fair value (income
        expressed with "-")
        Financial expenses (income expressed with
                                                                   18,665,115.07         40,218,036.98
        "-")
        Investment losses (income expressed with
                                                                   -34,997,898.47       -70,717,321.61
        "-")
        Decrease in deferred tax assets (increases
                                                                                            -63,080.11
        expressed with "-")
        Increase in deferred tax liabilities
        (decreases expressed with "-")
        Decrease in inventories (increases
                                                                    -1,023,698.59         5,500,517.27
        expressed with "-")
        Decrease in operating receivables
                                                                   43,475,853.03        289,715,229.11
        (increases expressed with "-")
        Increase in operating payables (decreases
                                                              -140,056,963.91            81,285,035.42
        expressed with "-")
        Others
        Net cash flows from operating activities              -100,371,976.92           207,168,402.26
        2. Significant investments and financing
        activities that do not involve cash receipts
        and payments
        Conversion of debt into capital
        Convertible corporate bonds due within
        one year
        Fixed assets acquired under financial lease
        3. Net changes in cash and cash
        equivalents
        Ending balance of cash                                 310,734,919.56           648,021,672.06


                               Notes to the Financial statements     Page 69
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                                                           The current period          Amount in previous
                  Supplementary information
                                                                amount                     period
        Less: beginning balance of cash                        648,021,672.06              456,751,614.75
        Plus: ending balance of cash equivalents
        Less: beginning balance of cash
                                                                                           232,853,018.84
        equivalents
        Net increase in cash and cash equivalents             -337,286,752.50               -41,582,961.53


2. Composition of cash and cash equivalents
                                                                                        Balance at the end
                                Item                           Ending balance
                                                                                           of last year
        I. Cash                                                     310,734,919.56         648,021,672.06
        Including: cash on hand                                          30,329.83               37,698.63
        Bank deposits readily available for payment                 310,694,227.98         647,983,965.23
        Other monetary funds readily available for
                                                                         10,361.75                      8.20
        payment
        Deposits with the central bank available for
        payment
        Interbank deposits
        Interbank lending
        II. Cash equivalents
        Including: bond investments due within three
        months
        III. Balance of ending cash and cash
                                                                    310,734,919.56         648,021,672.06
        equivalents
        Including: restricted cash and cash equivalents
        used by the parent company or subsidiaries
        within the group


3. Monetary funds that are not classified as cash and cash equivalents
                                                                                        Reasons for not
                                The current period       Amount in previous            being classified as
              Item
                                     amount                  period                      cash and cash
                                                                                          equivalents
       L/G deposit                     5,453,862.93                                       Frozen, restricted
       Deposit for bank
                                                                   27,474,594.34          Frozen, restricted
       acceptance bills
              Total                    5,453,862.93                27,474,594.34



(LVI) Assets with restricted ownership or right of use

                      Item                 Ending book value                   Reason for restriction
        Monetary funds                             5,453,862.93                    L/G deposit


                               Notes to the Financial statements     Page 70
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements

                      Item                  Ending book value                   Reason for restriction
                     Total                          5,453,862.93


(LVII) Foreign currency monetary items
1. Foreign currency monetary items
                                                                    Conversion
                                           Ending foreign                               Ending converted
                     Item                                            exchange
                                          currency balance                               RMB balance
                                                                       rate
        Monetary funds
        Including: USD                            838,420.63             7.0827                5,931,199.10
                  EUR                                1,017.87            7.8592                    7,999.64
                  HKD                             179,036.04            0.90622                  162,246.04
                  SGD                                3,328.03            5.3772                   17,895.49


(LVIII) Lease
1. The Company serves as the Lessee
                                                 The current period
                        Item                                                    Amount in previous period
                                                      amount
         Interest expenses on lease
                                                             264,995.49                          928,484.64
         liabilities
         Total cash outflow related to
                                                           6,314,826.00                        6,014,119.00
         lease
                     Total                                 6,579,821.49                        6,942,603.64


2. The Company serves as the Lessor
(1)Operating leases when serving as the Lessor
                                                                           Including: revenue related to
                        Item                      Lease income              variable lease payments not
                                                                             included in lease receipts
         House lease                                    1,258,431.54
                       Total                            1,258,431.54


VI. R&D expenditures
                                                         Amount incurred in            Amount incurred in
                               Item
                                                          the current period            previous period
         Employee compensation                                      24,140,938.27             23,134,437.76
         Depreciation and amortization costs                         1,705,020.54              1,822,436.62
         Repair costs                                                 946,164.21                 581,590.04

         Royalties                                                     47,789.72                 108,219.97



                                Notes to the Financial statements     Page 71
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                                                       Amount incurred in              Amount incurred in
                             Item
                                                        the current period              previous period
         Others                                                                                    850.00

         Total                                                    26,839,912.74             25,647,534.39
         Including: expensed R&D
                                                                  26,839,912.74             25,647,534.39
         expenditures
                     Capitalized R&D
         expenditures
                             Total                                26,839,912.74             25,647,534.39


VII. Equity in other entities
(I) Equity in subsidiaries
1. Composition of enterprise group
                                                      Main             Shareholding
                                                                         ratio (%)           Acquisition
                  Name of subsidiary                 place of
                                                                                              method
                                                     business        Direct    Indirect
        Shenzhen Nanshan Power
                                                    Zhongshan          80.00                Establishment
        (Zhongshan) Power Co., Ltd.
        Shenzhen Nanshan Power Gas
        Turbine Engineering Technology               Shenzhen        100.00                 Establishment
        (Shenzhen) Co., Ltd.
        Shenzhen Nanshan Power
        Environmental Protection (Shenzhen)          Shenzhen        100.00                 Establishment
        Co., Ltd.
        Shenzhen Xiefu Energy Co., Ltd.              Shenzhen          50.00                Establishment
        Shenzhen New Power Industrial Co.,
                                                     Shenzhen        100.00                 Establishment
        Ltd.
        Shennan Energy (Singapore) Co., Ltd.        Singapore        100.00                 Establishment
        Hong Kong Syndisome Co., Ltd.               Hongkong                    100.00      Establishment
        Zhuhai Hengqin Zhuozhi Investment
                                                      Zhuhai           99.96                Establishment
        Partnership (Limited Partnership)

Note: Shenzhen Nanshan Power (Zhongshan) Warehousing Co., Ltd. was canceled on December
13, 2023.

2. Important non-wholly owned subsidiaries
                                                                       Profits and
                                                Shareholding              losses
                                                  ratio of           attributable to      Ending balance
                 Name of subsidiary               minority              minority           of minority
                                                shareholders        shareholders in          interests
                                                    (%)                the current
                                                                          period
        Shenzhen Nanshan Power
                                                        20.00        -6,239,610.76        -106,399,280.71
        (Zhongshan) Power Co., Ltd.


1、



                              Notes to the Financial statements     Page 72
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements

3. Main financial information of important non-wholly owned subsidiaries
                                                Ending balance/RMB                                                       Balance at the end of the previous year/RMB
         Name
           of                                                                                                                                                           Non-
                                   Non-                                          Non-                                      Non-
        subsidia   Current                        Total         Current                        Total        Current                      Total        Current          current         Total
                                  current                                       current                                   current
           ry       assets                        assets       liabilities                  liabilities      assets                      assets      liabilities      liabilitie    liabilities
                                   assets                                     liabilities                                  assets
                                                                                                                                                                          s
        Shenzh
        en
        Nansha
        n Power
        (Zhong
        shan)
        Power
        Co.,
                   24,201,2     244,116,9      268,318,1       696,314,5     104,000,0      800,314,5       43,407,5    216,418,0      259,825,6     755,501,5         5,122,3      760,623,9
        Ltd.
                      15.36         38.96          54.32           57.88         00.00          57.88          71.96        67.18          39.14         88.98           99.93          88.91
        (Shenzh
        en
        Nansha
        n Power
        Zhongs
        han
        Compa
        ny)

                                             Amount for the current period/RMB                                                  Amount in previous period/RMB
           Name of                                                 Total                                                                              Total
          subsidiary         Operating                                              Cash flows from           Operating                                                 Cash flows from
                                              Net profit       comprehensiv                                                     Net profit        comprehensive
                              revenue                                              operating activities        revenue                                                 operating activities
                                                                 e income                                                                            income
        Shenzhen
        Nanshan              62,908,561.23    -31,198,053.79      -31,198,053.79            -1,869,970.79      18,619,522.44   -111,394,129.17      -111,394,129.17                69,486,856.28
        Power
        (Zhongshan)



                                                                     Notes to the Financial statements      Page 73
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements


                                       Amount for the current period/RMB                                  Amount in previous period/RMB
           Name of                                       Total                                                             Total
          subsidiary       Operating                                  Cash flows from         Operating                                 Cash flows from
                                        Net profit   comprehensiv                                         Net profit   comprehensive
                            revenue                                  operating activities      revenue                                 operating activities
                                                       e income                                                           income
        Power Co.,
        Ltd. (Shenzhen
        Nanshan
        Power
        Zhongshan
        Company)




                                                         Notes to the Financial statements   Page 74
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(II) Equity in joint venture arrangements or associates
1. Significant joint ventures or associates
                                                            Shareholding ratio           Accounting
         Name of joint       Main                                 (%)                  treatments for
                                        Main business
          ventures or       place of                                                   investments in
                                         activities
          associates        business                       Direct       Indirect      joint ventures or
                                                                                         associates
                            Renshan
                            Town,      Terminal
        Huidong Xiefu                                       40.00                     Equity method
                            Huidong    operations
                            County
        Liaoyuan
        Environmental       Yixing,    Environmental
                                                            9.935                     Equity method
        Protection          Jiangsu    protection
        (note)

Note: The Company invested RMB 72,873,680.00 in Liaoyuan Environmental Protection,
accounting for 9.935% of the equity of Liaoyuan Environmental Protection, making it the second
largest shareholder Liaoyuan Environmental Protection.. The Board of Directors of Liaoyuan
Environmental Protection has five members, with the Company appointing one member on March
12, 2022, which has a significant influence on Liaoyuan Environmental Protection.
2. Main financial information of significant joint ventures or associates
                                                                      Balance at the end of previous
                             Ending balance/amount incurred
                                                                     year/amount incurred in previous
                                  in the current period
                                                                                  period
                               Liaoyuan                                 Liaoyuan
                                                    Huidong                                Huidong
                             Environmental                           Environmental
                                                     Xiefu                                  Xiefu
                               Protection                              Protection
 Current assets              545,635,587.61       9,376,533.54        596,029,890.70     7,664,392.90
 Non-current assets          419,944,510.12       9,354,277.78        440,877,926.65 10,364,232.86
 Total assets                965,580,097.73      18,730,811.32      1,036,907,817.35 18,028,625.76

 Current liabilities         198,836,634.15      36,567,083.73       345,141,327.50     37,712,176.91
 Non-current liabilities      26,202,854.57                           25,415,201.79
 Total liabilities           225,039,488.72      36,567,083.73       370,556,529.29     37,712,176.91

 Minority interests          223,928,134.66                          207.978.431.69
 Equity attributable to
                                                             -                                      -
 shareholders of the         516,612,474.35                          458,372,856.37
                                                 17,836,272.41                          19,683,551.15
 parent company

 Net asset share
 calculated based on           51,325,449.33     -7,134,508.96        45,539,343.28     -7,873,420.46
 shareholding ratio
 Adjustments                  33,508,393.41      12,301,842.26        33,542,733.16     12,287,442.26
 -Others                      33,508,393.41      12,301,842.26        33,542,733.16     12,287,442.26
 Book value of equity
 investments in               84,833,842.74       5,167,333.30        79,082,076.44      4,414,021.80
 associates
 Fair value of equity
 investments in
 associates with publicly
 quoted prices


                              Notes to the Financial statements   Page 75
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                                                                       Balance at the end of previous
                               Ending balance/amount incurred
                                                                      year/amount incurred in previous
                                    in the current period
                                                                                   period
                                 Liaoyuan                                Liaoyuan
                                                    Huidong                                 Huidong
                               Environmental                          Environmental
                                                     Xiefu                                   Xiefu
                                 Protection                             Protection
 Operating revenue                                 8,268,259.69        646,656,060.19          7,234,419.21
                               660,404,337.83
 Net profit                     85,937,325.14      1,883,278.74        138,734,347.94           -632,550.08
 Net profit attributable to
 shareholders of the            68,971,850.12      1,883,278.74        116,960,145.29           -632,550.08
 parent company
 Net profit from
 discontinued operations
 Other comprehensive
 income
 Total comprehensive
                                68,971,850.12      1,883,278.74        116,960,145.29           -632,550.08
 income
 Dividends received
 from associates in the          1,214,550.00
 current period


VIII. Government subsidies
(1) Liability items involving government subsidies
                                          Amount
                                New                      Amount
                                          included                      Other
                              subsidy                  transferred                                 Related
             Balance at                    in non-                     change
 Liabiliti                    amount                     to other                    Ending           to
             the end of                   operating                    s in the
    es                         in the                   income in                    balance      assets/inc
              last year                  revenue in                    current
                              current                  the current                                   ome
                                         the current                   period
                               period                     period
                                            period
 Deferre
             82,145,596       3,690,00                  17,966,24                   67,869,34     Asset
 d
                    .60           0.00                       8.53                        8.07     related
 income
             82,145,596       3,690,00                  17,966,24                   67,869,34
   Total
                    .60           0.00                       8.53                        8.07
The details of the projects involving government subsidies are as follows:
                                                   Amount
                                      New
                                                 recognized
                  Balance at        subsidy                         Other                          Asset
                                                 in profit or                     Ending
    Item          the end of      amount in                        change                       related/inco
                                                  loss in the                     balance
                   last year      the current                         s                          me related
                                                    current
                                     period
                                                    period
Shenzhen air
quality          49,330,169.                     4,731,818.1                  44,598,351.
                                                                                                Asset related
improvement              80                                6                          64
subsidy
Government
subsidies for
                 23,615,664.                                                  18,376,607.
low-nitrogen                                     5,239,056.7                                    Asset related
                         69                                                           94
equipment                                                  5
renovation


                               Notes to the Financial statements    Page 76
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Circular
economy
support fund      5,510,265.1
                                                4,564,285.6                 945,979.59    Asset related
for sludge                  9
                                                          0
drying
project
Treasury
bond subsidy
                  2,061,250.0
for sludge                                      2,061,250.0                               Asset related
                            0
drying                                                    0
project
Funds for
technological
transformatio
n and             988,055.58                      70,666.68                 917,388.90    Asset related
investment
projects in
2021-2022
Special funds
for energy
conservation      342,111.34                     342,111.34                               Asset related
and emission
reduction
Motor energy
efficiency
improvement       298,080.00                      34,560.00                 263,520.00    Asset related
subsidy
scheme
Special funds
for
promoting                         1,500,000.                                1,125,000.0
                                                 375,000.00                               Asset related
high-quality                             00                                           0
industrial
development
Funding for
Carbon Peak
Support
Program
Industrial
                                  2,190,000.                                1,642,500.0
Energy                                           547,500.00                               Asset related
                                         00                                           0
Conservation
and
Comprehensi
ve Utilization
Project
                  82,145,596.     3,690,000.    17,966,248.                 67,869,348.
    Total
                          60             00             53                          07


(II) Government subsidies included in the current profits and losses
                                       Amount incurred in the          Amount incurred in previous
            Subsidy project
                                          current period                        period
      Other benefits                                  44,431,212.00                   9,033,196.38
      Non-operating revenue                                                                 39,600.00


                              Notes to the Financial statements   Page 77
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                Total                                  44,431,212.00                      9,072,796.38



Details of government subsidies included in other income are as follows:
                                                                                         Asset
                                                  The current            Amount in
             Subsidy project                                                             related/income
                                                 period amount         previous period
                                                                                         related
Low nitrogen project renovation grants              5,239,056.75           488,621.77     Asset related
Shenzhen air quality improvement
                                                    4,731,818.16         4,731,818.16     Asset related
subsidy
Circular economy support fund for
                                                    4,564,285.60           647,002.92     Asset related
sludge drying project
Treasury bond subsidy for sludge drying
                                                    2,061,250.00           255,000.00     Asset related
project
Special funds for energy conservation
                                                      342,111.34           114,037.32     Asset related
and emission reduction
Motor energy efficiency improvement
                                                       34,560.00             34,560.00    Asset related
subsidy scheme
Funds for technological transformation
                                                       70,666.68             53,333.32    Asset related
and investment projects in 2021-2022
Pilot    demonstration     funding   for
                                                      375,000.00                          Asset related
industrial "carbon peak" work
Industrial development special grants                 547,500.00                          Asset related
Thermal power plant relief grants                  25,400,000.00                         Income related
Green and low-carbon development
                                                      450,000.00                         Income related
project grants
National high-tech enterprise doubling
                                                      300,000.00           500,000.00    Income related
program
Stable employment subsidy                             140,838.47           153,231.98    Income related
Pilot    demonstration    funding for
                                                      100,000.00           570,000.00    Income related
industrial "carbon peak" work
Science and technology innovation
                                                       46,500.00             28,000.00   Income related
voucher
Special funds for industrial development               27,625.00                         Income related
Industrial development special grants                                      246,100.00    Income related
One-time training subsidy for employees
                                                                           128,000.00    Income related
who stay on duty
Support funds for office buildings of
                                                                         1,000,000.00    Income related
listed companies
Social security subsidies                                                    83,490.91   Income related
                  Total                            44,431,212.00         9,033,196.38


IX. Risks related to financial instruments
The Company's main financial instruments include equity investments, long-term and short-term
borrowings, accounts receivable, accounts payable, other receivables, etc. For details of various
financial instruments, please refer to the relevant items in the Note V. The risks related to these
financial instruments, and the risk management policies adopted by the Company to mitigate these
risks are described below. The management of the Company manages and monitors these risk

                               Notes to the Financial statements   Page 78
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
exposures to ensure that the above risks are controlled within a limited range.
The Company uses sensitivity analysis techniques to analyze the impact that reasonable and
probable changes in risk variables may have on current profit or loss or shareholders' equity. Since
any risk variables rarely changes in isolation, and the correlation between variables will have a
significant effect on the final amount of impact of a change in a certain risk variable, the following
is therefore based on the assumption that changes in each variable are made independently of each
other:
(I) Credit risk
Credit risk refers to the risk that one party to financial instruments fails to perform its obligations,
causing the other party to suffer financial losses. The Company is mainly exposed to customer
credit risk caused by credit sales. Before entering into a new contract, the Company assesses the
credit risk of the new customers, including external credit ratings and, in some cases, bank
references (when this information is available). The Company sets a credit limit for each customer,
which is the maximum amount for which no additional approval is required.
The Company ensures that the Company's overall credit risk is within a controllable range through
quarterly monitoring of credit ratings of existing customers and monthly review of aging analysis
of accounts receivable. When monitoring the credit risk of customers, customers are grouped
according to their credit characteristics. Customers rated as "high risk" are placed on the restricted
customer list and may only be given for credit sales by the Company in the future with additional
approval, otherwise they must be required to pay the corresponding amount in advance.


(II) Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligations that
is settled by the delivery of cash or other financial assets. It is the Company's policy to ensure that
it has sufficient cash to repay its debts as and when they fall due. Liquidity risk is centrally
controlled by the Company's Finance Department. The Finance Department ensures that the
Company has sufficient funds to repay its debt under all reasonable forecasts by monitoring cash
balances, readily realizable securities, and rolling forecasts of cash flows over the next 12 months.


(III) Market risk
Market risk of financial instruments refers to the risk that the fair value or future cash flows of
financial instruments fluctuates due to changes in market prices, including exchange rate risk,
interest rate risk and other price risks.
(1) Interest rate risk
Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments
fluctuates due to changes in market interest rates. The Company's risk of changes in cash flows of
financial instruments due to changes in interest rates is mainly related to variable-rate bank
borrowings.
The sensitivity analysis of interest rate risk is based on the following assumptions:
changes in market interest rates affect interest income or expenses of variable-rate financial
instruments; for fixed-rate financial instruments measured fair value, changes in market interest
rates only affect their interest income or expenses; for derivative financial instruments designated
as hedging instruments, changes in market interest rates affect their fair value, and all interest rate
hedging is expected to be highly effective; changes in the fair value of derivative financial
instruments and other financial assets and liabilities which are calculated by using the discounted
cash flow method at the market interest rate on the balance sheet date.
As of December 31, 2023, the Company's interest on bank borrowings at variable rates totaled
RMB 4,087,502.74. Based on the above assumptions, with other variables unchanged, assuming a
5% changes in interest rates, the pre-tax impact on current profits and losses and shareholders'
equity is as follows:

                              Notes to the Financial statements   Page 79
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements


                                     Current year                                 Previous year
       Changes in                              Impact on                                    Impact on
      interest rates       Impact on                                   Impact on
                                              shareholders'                                shareholders'
                            profits                                     profits
                                                 equity                                       equity
      Increase of
                            -204,375.14             -204,375.14         -365,252.94             -365,252.94
      5%
      Decrease of
                             204,375.14             204,375.14           365,252.94               365,252.94
      5%


(2) Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flows of financial instruments
fluctuates due to fluctuations in foreign exchange rates. The Company tries its best to match
foreign currency revenues with foreign currency expenditures to reduce exchange rate risk. In
addition, the Company may also enter into forward foreign exchange contracts or currency swap
contracts to avoid exchange rate risk. During the current period and the previous period, the
Company did not sign any forward foreign exchange contract or currency swap contract.
The exchange rate risk exposed to the Company mainly comes from financial assets and financial
liabilities denominated in foreign currencies, and the amounts of foreign-currency financial assets
and foreign-currency financial liabilities converted into RMB are listed as follows:
                                 Ending balance                       Balance at the end of last year
                                      Other                                       Other
         Item
                         USD         foreign           Total          USD        foreign         Total
                                   currencies                                  currencies
      Monetary
                       5,938280.40   188,141.17     6,119,340.27   5,815,610.10    279,292.55     6,094,902.65
      funds
         Total         5,938280.40   188,141.17     6,119,340.27   5,815,610.10    279,292.55     6,094,902.65

As of December 31, 2023, with all other variables remaining unchanged, if RMB appreciates or
depreciates by 5% against foreign currencies, the Company's net profit will increase or decrease
by RMB 306,321.08. The Management believes that 5% reasonably reflects the reasonable range
of possible changes in RMB against foreign currencies in the following year.
X. Disclosure of fair value

The input value used for measuring fair value is divided into three levels:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities
that the Company can access on the measurement date.
Level 2 inputs are directly or indirectly observable inputs of relevant assets or liabilities other than
Level 1 inputs.
Level 3 inputs are unobservable inputs of related assets or liabilities.
The level to which the results of fair value measurement belong is determined by the lowest level
of inputs that are significant to fair value measurement as a whole.
1. Fair values of assets and liabilities measured at fair value as at December 31, 2023


                                               Fair value as at December 31, 2023
         Item              Measured at the Measured at the
                                                           Measured at the fair
                            fair value of   fair value of                                         Total
                                                            value of level 3
                               level 1         level 2

                               Notes to the Financial statements    Page 80
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements

                                             Fair value as at December 31, 2023
         Item            Measured at the Measured at the
                                                         Measured at the fair
                          fair value of   fair value of                                    Total
                                                          value of level 3
                             level 1         level 2
Continuous
measurement at fair
value
Financial assets held
                                                                   226,000,000.00 226,000,000.00
for trading
Other investments in
                                                                   300,615,000.00 300,615,000.00
equity instruments
Total assets with
continuous
                                                                   526,615,000.00 526,615,000.00
measurement at fair
value



2. Basis for determining the market price of items measured at the fair value of level 3 on a
continuing and non-continuous basis
For financial instruments that are not traded in the active market, the Company uses valuation
techniques to determine their fair values. The valuation models used mainly are discounted cash
flow model and market comparable company model, etc. The input values of valuation techniques
mainly include risk-free interest rate, benchmark interest rate, exchange rate, credit spread,
liquidity premium, illiquidity discount, etc.


XI.. Related parties and related transactions
(I) Information on the parent company of the Company
The Company does not have a parent company as none of its shareholders hold more than 50% of
the Company's shares and cannot form a control relationship with the Company by other means.


(II) Information on the Company's subsidiaries
For details of the Company's subsidiaries, please refer to the Note "VII. (I) Equity in subsidiaries".


(III) Information on the Company's joint ventures and associates
For details of the Company's significant joint ventures or associates, please refer to the Note "VII.
(II) Equity in joint venture arrangements or associates".
(IV) Information on other related parties
                                                               Relationship between other related
                  Name of other related parties
                                                                    parties and the Company
        Shenzhen Energy Corporation (hereinafter            Legal person holding more than 5% of
        referred to as "Energy Corporation")                the Company's shares
                                                            Legal person holding more than 5% of
        Shenzhen Guangju Industrial Co., Ltd.
                                                            the Company's shares
        HONG KONG NAM HOI                                   Legal person holding more than 5% of
        (INTERNATIONAL) LTD                                 the Company's shares
                                                            Legal person that indirectly holds more
        Shenzhen Capital Holdings Co., Ltd.                 than 5% of the Company's shares
                                                            through Energy Corporation
        Artron Art (Group) Co., Ltd.                        Sun Huirong, the director of the

                             Notes to the Financial statements   Page 81
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                                                                Relationship between other related
                 Name of other related parties
                                                                     parties and the Company
                                                              Company, serves as a director of this
                                                              company
       Directors, supervisors and senior officers of the
                                                              Key managers
       Company


(V) Related transactions
1. Related transactions of purchase and sale of goods and rendering and acceptance of
services
Purchase of goods/acceptance of services
                                                                                             Unit: RMB
                                                                Amount of       Whether       Amount
                                                  Amount
                                Details of                     transactions       the         incurred
                                                incurred in
          Related party           related                        approved     transaction        in
                                                the current
                               transactions                                     limit is      previous
                                                   period
                                                                               exceeded        period
       Artron Art            Purchase of
                                                146,016.00
       (Group) Co., Ltd.     goods




2. Related guarantees
The Company has no related-party guarantees.

3. Remuneration of key officers
                                                 The current        period    Amount    in     previous
        Item
                                                 amount                       period
        Remuneration       of      directors,
                                                 RMB 5.9984 million           RMB 7.5319 million
        supervisors and senior officers


(VI) Receivables and payables of related parties
1. Receivables
        Project                                                               Book balance at the end
                            Related party         Ending book balance
        name                                                                       of last year
        Other
        receivables
                          Huidong Xiefu                    15,532,630.74               15,640,915.45
                                Total                      15,532,630.74               15,640,915.45


XII. Commitments and contingencies
(I) Important commitments
1. Information on letters of guarantee issued as of December 31, 2023
Within the credit limit, the Company applied to the Shenzhen Branch of China Guangfa Bank for
a performance bond for the Company and its wholly-owned subsidiary, New Power Company,
with an amount of RMB 27,202,171.15, which will expire on March 31, 2024.
Within the credit limit, the Company applied to the Shenzhen Branch of China Minsheng Bank
                              Notes to the Financial statements   Page 82
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
Co., Ltd. for a performance bond for the Company and its wholly-owned subsidiary, New Power
Company, with an amount of RMB 30,000,000.00, which will expire on June 30, 2024.
2. Other commitments
As of December 31, 2023, except for the above matters, the Company has no other important
commitments that need to be disclosed.
(II) Contingencies
As of December 31, 2023, the Company has no contingencies that need to be disclosed.


XIII. Events after the balance sheet date


(I) Important non-adjusting events
1. After the audit and approval of the 23rd Extraordinary Meeting of the Ninth Board of Directors
on February 6, 2024, Shenzhen Nanshan Power Zhongshan Company, a subsidiary of the
Company, intends to classify and package and dispose of two sets of generating units and heavy
oil processing line related assets through public invitation for offer and transfer on Shenzhen
United Property and Equity Exchange (hereinafter referred to as "Shenzhen Stock Exchange").
The above assets have an assessed value of RMB 159.4852 million excluding tax. Shenzhen
Pengxin Asset Appraisal Land and Real Estate Valuation Co., Ltd. has issued an appraisal report
with October 31, 2023 as the appraisal base date (PXZPBZ [2023] No. S211, PXZPBZ [2023] No.
S212).
2. After deliberation and approval at the 22nd Extraordinary Meeting of the Ninth Board of
Directors of the Company, the Company and its held subsidiary Xiefu Company intend to enter
into a Property Entrustment Management Contract with the Energy Group, specifying that the
Company will serve as the supervisory and guiding entity, and Xiefu Company will provide
property leasing and management services to the Energy Group. Energy Group will entrust and
authorize Xiefu Company to operate and manage the 13 properties it holds. Period of entrusted
management: 5 years (From January 1, 2024 to December 31, 2024 is the period of trial operation,
and from January 1, 2025 to December 31, 2028 is the period of formal operation).
Apart from this, as of the date of this report, the Company has no subsequent events that need to
be disclosed.



XIV. Other important events
(I) Information on segments
1. Determination basis and accounting policies of reporting segments
For management purposes, the Company and subsidiaries are divided into business units based on
products and services. The Company has three reporting segments as follows:
(1)Power production and sale segment;
(2)Integrated energy service segment;
(3)Other Segments
The Company's management periodically evaluates the operating results of its operating segments
to decide on the allocation of resources to them and to evaluate their performance.
Segment reporting information is disclosed in accordance with the accounting policies and
measurement criteria used by the segments in reporting to the Management, which are consistent
with the basis of accounting and measurement used in the preparation of the financial statements.


                            Notes to the Financial statements   Page 83
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
2. Financial information of reporting segments

                                         Integrated
                     Power
                                          Energy              Other          Inter-segment
     Item       Production and                                                                      Total
                                          Service           Segments           offseting
                 Sale Division
                                          Segment
 Operati
                                        26,287,885.0
 ng             563,055,729.51                             1,101,142.92         664,566.75     589,780,190.71
                                                      3
 revenue
 Operati
                572,347,128.29          9,063,601.69         189,242.84         157,428.84     581,442,543.98
 ng costs
 Total          2,230,338,488.9         145,669,771.       358,772,209.                         2,049,365,388.
                                                                             685,415,080.67
 assets                             1               41                  04                                  69
 Total
                                                           22,582,902.1
 liabilitie     835,651,310.37          67,164,161.2                         266,846,346.69    658,552,027.04
                                                                         6
 s                                                    0


(II) Others
Annuity plan
According to the Company's enterprise annuity plan, the Company accrues and pays enterprise
annuities at 8% of employees' wages.


XV. Notes to the main items of the parent company's financial statements
(I) Accounts receivable
1. Disclosure of accounts receivable on an aging basis
                                                                                    Balance at the end of last
                         Aging                             Ending balance
                                                                                              year
            Within 1 year                                         26,981,407.91                47,995,982.82
                        Subtotal                                  26,981,407.91                47,995,982.82
            Less: provision for bad debts
                            Total                                 26,981,407.91                47,995,982.82

2. Accounts receivable are classified and disclosed according to the method of provision for
bad debts
                                                                  Ending balance

                Category                  Book balance              Provision for bad debts
                                                          Ratio                    Provision     Book value
                                        Amount                        Amount
                                                           (%)                     ratio (%)
            Provision for bad

                                    Notes to the Financial statements    Page 84
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements

                                                              Ending balance

             Category               Book balance                Provision for bad debts
                                                    Ratio                      Provision    Book value
                                 Amount                          Amount
                                                     (%)                       ratio (%)
        debts on an
        individual basis
        Provision
        provision for bad
        debts on a credit     26,981,407.91         100.00                                 26,981,407.91
        risk portfolio
        basis
               Total          26,981,407.91         100.00                                 26,981,407.91




                                                     Balance at the end of last year

             Category               Book balance                Provision for bad debts
                                                    Ratio                      Provision    Book value
                                 Amount                          Amount
                                                    (%)                        ratio (%)
        Provision for bad
        debts on an
        individual basis
        Provision
        provision for bad
        debts on a credit     47,995,982.82         100.00                                 47,995,982.82
        risk portfolio
        basis
               Total          47,995,982.82         100.00                                 47,995,982.82


(1) Provision for bad debts on a portfolio basis:


                                                              Ending balance
             Name of
                                                             Provision for bad
             portfolio        Accounts receivable                                    Provision ratio (%)
                                                                   debts
          Portfolio II:
          receivables
          from power                26,981,407.91
          production and
          sales
                Total               26,981,407.91




                             Notes to the Financial statements      Page 85
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements



3. Accounts receivable and contract assets of the top five ending balances by debtors
                                                                                                 Ending
                                                                                               balance of
                                                                             Proportion         provision
                                                             Ending          to the total        for bad
                                             Ending
                                Ending                     balance of          ending            debts of
                                             balance
                              balance of                    accounts         balance of         accounts
         Entity name                            of
                               accounts                    receivable         accounts         receivable
                                             contract
                              receivable                  and contract       receivable            and
                                              assets
                                                             assets         and contract        provision
                                                                             assets (%)       for contract
                                                                                                  asset
                                                                                              impairment
        Shenzhen
        Power Supply
                            26,981,407.91                26,981,407.91           100.00
        Bureau Co.,
        Ltd.
             Total          26,981,407.91                26,981,407.91           100.00


(II) Other receivables
                                                                                 Balance at the end of
                           Item                         Ending balance
                                                                                      last year
        Interest receivable
        Dividends receivable
        Other receivables                                   714,553,901.02              851,189,111.89
                          Total                             714,553,901.02              851,189,111.89


1. Other receivables
(1) Disclosure based on aging
                                                                                 Balance at the end of
                          Aging                         Ending balance
                                                                                      last year
        Within 1 year                                      711,403,571.07               452,449,473.00
        1 to 2 years                                               2,500.00                 94,733,821.40
        2 to 3 years                                                                            19,926.83
        Over 3 years                                        29,172,845.44               331,315,534.10
                         Subtotal                          740,578,916.51               878,518,755.33
        Less: provision for bad debts                       26,025,015.49                   27,329,643.44
                          Total                            714,553,901.02               851,189,111.89

(2) Disclosure by category
                                                        Ending balance
          Category
                                  Book balance            Provision for bad debts           Book value

                              Notes to the Financial statements   Page 86
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                                               Ratio                            Provision
                              Amount                            Amount
                                               (%)                              ratio (%)
        Provision for
        bad debts on
                            26,025,015.49            3.51    26,025,015.49        100.00
        an individual
        basis
        Provision
        provision for
        bad debts on
                          714,553,901.02          96.49                                      714,553,901.02
        a credit risk
        portfolio
        basis
            Total         740,578,916.51       100.00        26,025,015.49           3.51    714,553,901.02


                                                   Balance at the end of last year

           Category                Book balance               Provision for bad debts
                                               Ratio                            Provision      Book value
                              Amount                            Amount
                                                (%)                             ratio (%)
        Provision for
        bad debts on
                            27,617,758.22            3.14    27,329,643.44         98.96         288,114.78
        an individual
        basis
        Provision
        provision for
        bad debts on
                           850,900,997.11         96.86                                      850,900,997.11
        a credit risk
        portfolio
        basis
             Total         878,518,755.33      100.00        27,329,643.44           3.11    851,189,111.89


① Provision for bad debts on an individual basis:
                        Balance at the end of last
                                                                          Ending balance
                                  year
                                                                                                      Reason
          Name                         Provision                         Provision      Provisi
                          Book                               Book                                      s for
                                        for bad                           for bad       on ratio
                         balance                            balance                                  provisio
                                         debts                             debts          (%)
                                                                                                         n
                                                                                                     Not
        Huiyang
                                                                                                     expecte
        Kangtai       14,311,626.      14,311,626.      14,311,626.      14,311,626.
                                                                                            100.00   d to be
        Industrial            70               70               70               70
                                                                                                     recover
        Company
                                                                                                     ed
        Receivabl
        es from                                                                                      Not
        employee                                                                                     expecte
                      9,969,037.6      9,969,037.6      9,969,037.6      9,969,037.6
        benefit                                                                             100.00   d to be
                                3                3                3                3
        fund                                                                                         recover
        dividends                                                                                    ed
        and taxes
        Receivabl                                                                                    Not
                      1,736,004.1      1,736,004.1      1,736,004.1      1,736,004.1
        es from                                                                             100.00   expecte
                                6                6                6                6
        purchase                                                                                     d to be

                              Notes to the Financial statements       Page 87
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                      Balance at the end of last
                                                                       Ending balance
                                year
                                                                                                    Reason
          Name                          Provision                     Provision        Provisi
                         Book                             Book                                       s for
                                         for bad                       for bad         on ratio
                        balance                          balance                                   provisio
                                          debts                         debts            (%)
                                                                                                       n
        of                                                                                         recover
        employee                                                                                   ed
        dormitori
        es
                                                                                                   Not
                                                                                                   expecte
                      1,601,089.7     1,312,974.9
        Others                                            8,347.00      8,347.00        100.00     d to be
                                3               5
                                                                                                   recover
                                                                                                   ed
                      27,617,758.     27,329,643.     26,025,015.    26,025,015.
           Total                                                                        100.00
                              22              44              49             49


① Provision for bad debts on a portfolio basis
                                     Ending balance
        Name                                               Provision for bad
                                     Other receivables                            Provision ratio (%)
                                                           debts
        Portfolio          IV:
        transactions    among
                                        712,425,641.88
        related parties within
        the combination
        Portfolio V: guarantee,
        deposit and petty cash            1,625,577.32
        portfolio
        Portfolio VII: other
        receivables        and              502,681.82
        temporary payments
        Total                           714,553,901.02
(3) Classification by nature of payment
                                                                              Book balance at the end
              Nature of payment                 Ending book balance
                                                                                   of last year
        Transactions among related
                                                          712,425,641.88                  850,503,678.18
        parties within the combination
        Other receivables and
                                                           14,645,149.15                   16,178,134.74
        temporary payments
        Receivable from employees                          11,882,548.16                   10,084,796.20
        Margin, security deposit and
                                                            1,625,577.32                    1,752,146.21
        petty cash portfolio
                    Subtotal                              740,578,916.51                  878,518,755.33
        Less: provision for bad debts                      26,025,015.49                   27,329,643.44
                     Total                                714,553,901.02                  851,189,111.89


(4) Provision provision for bad debts
            Provision for bad         The first        The second          The third
                                                                                                  Total
                  debts                stage             stage              phase

                               Notes to the Financial statements   Page 88
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                                                       Expected          Expected
                                                       credit loss       credit loss
                                     Expected         over the life     over the life
                                    credit losses        of the            of the
                                    over the next     instruments       instruments
                                     12 months         (no credit          (credit
                                                      impairment        impairment
                                                     has occurred)     has occurred)
         Beginning balance                                             27,329,643.44      27,329,643.44
         Beginning balance in
         the current period
         --Transfer to the
         second stage
         --Transfer to the third
         stage
         --Reverse to the
         second stage
         --Reverse to the first
         stage
         Provision for the
                                                                            129,806.28      129,806.28
         current period
         Reverse for the current
                                                                        1,235,154.68       1,235,154.68
         period
         Charge-off for the
                                                                            199,279.55      199,279.55
         current period
         Write-off for the
         current period
         Other changes
         Ending balance                                                26,025,015.49      26,025,015.49


(5) Centralized fund management
         Amounts included in other receivables due
                                                                                         690,731,979.36
         to centralized fund management
                                                          The Company centrally manages the funds
                                                                 of its subsidiaries, with principal and
                                                              interest receivable from the subsidiaries
         Situation description
                                                             amounting to RMB 690,731,979.36 and
                                                         principal and interest payable to subsidiaries
                                                                   amounting to RMB 95,299,883.34.




(III) Long-term equity investments
                           Ending balance                         Balance at the end of last year
  Item                        Provision                                       Provision
                Book                                          Book
                                 for        Book value                           for        Book value
               balance                                       balance
                             impairment                                      impairment
Investme
              855,811,15     445,002,24     410,808,90      718,091,32       445,002,24     273,089,07
nts in
                    0.92           5.26           5.66            2.09             5.26           6.83
subsidiar

                              Notes to the Financial statements   Page 89
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements

                             Ending balance                        Balance at the end of last year
  Item                         Provision                                       Provision
                 Book                                            Book
                                  for         Book value                          for       Book value
                balance                                         balance
                              impairment                                      impairment
ies
Investme
nts in
associate      84,833,842.                    84,833,842.   79,082,076.                     79,082,076.
s and                  74                             74            44                              44
joint
ventures
               940,644,99      445,002,24     495,642,74     797,173,39       445,002,24    352,171,15
  Total
                     3.66            5.26           8.40           8.53             5.26          3.27

1. Investments in subsidiaries
                                                                                 Provisio
                                                      Decrea
                                                                                   n for      Ending
                                         Increased      sed
                          Balance at                                             impairm     balance of
                                        amount in     amount        Ending
            Investees     the end of                                               ent in    provision
                                        the current    in the       balance
                           last year                                                the          for
                                           period     current
                                                                                  current   impairment
                                                      period
                                                                                  period
          Shenzhen
          Xiefu           26,650,000                               26,650,000
          Energy                  .00                                     .00
          Co., Ltd.
          Shennan
          Energy          6,703,800.                               6,703,800.
          (Singapore             00                                       00
          ) Co., Ltd.
          Shenzhen
          New
                          71,270,000    104,367,76                 175,637,76               13,709,556
          Power
                                  .00         3.02                       3.02                      .49
          Industrial
          Co., Ltd.
          Shenzhen
          Nanshan
          Power           410,740,00                               410,740,00               410,740,00
                                               1.00
          (Zhongsha             0.00                                     1.00                     0.00
          n) Power
          Co., Ltd.
          Shenzhen
          Nanshan
          Power Gas
          Turbine
          Engineerin      6,000,000.    18,460,360                 24,460,360
          g                      00            .00                        .00
          Technolog
          y
          (Shenzhen
          ) Co., Ltd.
          Shenzhen
          Nanshan         55,300,000    14,891,704                 70,191,704               20,552,688
          Power                   .00          .81                        .81                      .77
          Environme

                               Notes to the Financial statements   Page 90
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                                                                            Provisio
                                                  Decrea
                                                                              n for      Ending
                                     Increased      sed
                      Balance at                                            impairm     balance of
                                    amount in     amount        Ending
         Investees    the end of                                              ent in    provision
                                    the current    in the       balance
                       last year                                               the          for
                                       period     current
                                                                             current   impairment
                                                  period
                                                                             period
        ntal
        Protection
        (Shenzhen
        ) Co., Ltd.
        Zhuhai
        Hengqin
        Zhuozhi
        Investment    141,427,52                               141,427,52
        Partnershi          2.09                                     2.09
        p (Limited
        Partnershi
        p)
                      718,091,32    137,719,82                 855,811,15              445,002,24
           Total
                            2.09          8.83                       0.92                    5.26




                           Notes to the Financial statements   Page 91
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements


2. Investments in associates and joint ventures
                                                                 Increase and decrease in the current period
                                                                                                                                                        Ending
                              Ending                           Investment
                                                                                                                                                        balance
                              balance                           profit or
               Balance at                Addition                           Adjustments Other Declaratio             Provision                             of
                                 of                 Reduced        loss                                                                   Ending
Investees      the end of                   al                               to the other    chang     n of cash        for      Other                 provision
                             provision              investme   recognized                                                                 balance
                last year                investme                           comprehensi       es in     dividend     impairme      s                      for
                                for                    nt       under the
                                            nt                                ve income      equity    or profits        nt                            impairme
                             impairme                            equity
                                                                                                                                                           nt
                                 nt                              method
1.
Associates
Liaoyuan
Environmen     79,082,076.                                     6,966,316.                               1,214,550.                       84,833,842.
tal                    44                                             30                                       00                                74
Protection
               79,082,076.                                     6,966,316.                               1,214,550.                       84,833,842.
Subtotal
                       44                                             30                                       00                                74
               79,082,076.                                     6,966,316.                               1,214,550.                       84,833,842.
Total
                       44                                             30                                       00                                74




                                                          Notes to the Financial statements   Page 92
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
(IV) Operating revenue and operating costs
                                 The current period amount              Amount in previous period
               Item
                                 Revenue              Cost              Revenue            Cost
        Main business       264,690,176.35       357,865,804.80     331,675,472.61    454,500,441.17
        Other business      126,959,772.74         5,823,727.52       91,408,429.32        63,394.30
               Total        391,649,949.09       363,689,532.32     423,083,901.93    454,563,835.47


1. Break down by product or service type

                            The current period amount                 Amount in previous period
           Item
                           Revenue                 Cost              Revenue              Cost
        Power
        production       391,340,842.07       363,617,073.55       422,521,038.95     454,563,835.47
        and sale
        Others                 309,107.02           72,458.77           562,862.98
           Total         391,649,949.09       363,689,532.32       423,083,901.93     454,563,835.47


2. By region

                            The current period amount                 Amount in previous period
           Item
                           Revenue                 Cost              Revenue              Cost
        Domestic         391,649,949.09       363,689,532.32       423,083,901.93     454,563,835.47
           Total         391,649,949.09       363,689,532.32       423,083,901.93     454,563,835.47


3. Revenue broken down by time of transfer of goods or services
                                                   The current period          Amount in previous
                        Item
                                                        amount                     period
        Recognize revenue at a certain
                                                          391,649,949.09              423,083,901.93
        time point
                       Total                              391,649,949.09              423,083,901.93


(V) Investment income
                                                                    The current         Amount in
                                 Item
                                                                   period amount      previous period
        Income from long-term equity investments
        accounted for equity method under the equity                  6,966,316.30      6,208,396.44
        method
        Investment income from financial assets held for
                                                                     18,538,064.54     57,851,532.85
        trading during the holding period
        Dividend income received from investments in
                                                                         340,206.13       453,587.35
        equity instruments during the holding period
        Dividends from long-term equity investments                   6,717,600.82      8,397,001.02


                               Notes to the Financial statements   Page 93
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                                                                 The current           Amount in
                               Item
                                                                period amount        previous period
                               Total                              32,562,187.79       72,910,517.66

XV. Supplementary information
(I) Statement of non-recurring gains and losses in the current period
                                     Item                                   Amount        Remark
        Profits and losses on disposal of non-current assets,
        including write-offs of provision for asset impairment             1,878,391.11
        that has been made
        Government subsidies included in the current profits and
        losses, except for those that are closely related to the
        Company's normal business operations, comply with
                                                                          44,431,212.00
        national policies and regulations, are enjoyed according
        to determined standards, and have a sustained impact on
        the Company's profits and losses
        Except for the effective hedging business related to the
        Company's normal operating business, profits and losses
        from changes in fair value of financial assets and
                                                                          18,538,064.54
        financial liabilities held by non-financial enterprises and
        profits and losses arising from the disposal of financial
        assets and financial liabilities
        Fund occupation fees charged to non-financial
        enterprises included in the current profits and losses
        Profits and losses from entrusting others to invest or
        manage assets
        Profits and losses from external entrusted loans
        Loss of assets due to force majeure, such as natural
        disasters
        Reversal of provision for impairment of receivables
                                                                           1,235,154.68
        individually tested for impairment
        The investment cost in subsidiaries, associates and joint
        ventures acquired by an enterprise is less than the gains
        from the fair value of the identifiable net assets of the
        investees that shall be enjoyed when acquiring the
        investment
        Current net profit and loss of subsidiaries from the
        beginning of the period to the combination date arising
        from business combination under the common control
        Profits and losses on exchange of non-monetary assets
        Profits and losses of debt restructuring
        One-time expenses incurred by the enterprise due to the
        fact that the relevant operating activities are no longer
        sustainable, such as expenses for relocating employees,
        etc.
        One-time impact on current profits and losses due to
        adjustments in laws and regulations such as taxation and
        accounting, etc.
        One-time confirmed share-based payments expenses due
        to cancellation or modification of equity incentive plan
        For cash-settled share-based payments, profits and losses
        arising from fair value changes of employee
        compensation payable after the vesting date
        Profits and losses from fair value changes of investment

                            Notes to the Financial statements   Page 94
Shenzhen Nanshan Power Co., Ltd.
2023
Notes to the Financial statements
                                    Item                                     Amount          Remark
        properties that are subsequently measured by using the
        fair value model
        Gains arising from transactions at significantly unfair
        transaction prices
        Profit or loss arising from contingencies unrelated to the
        Company's normal business operations
        Revenue from custody fees obtained from entrusted
        operations
        Other non-operating revenue and expenses other than
                                                                           11,628,630.83
        those mentioned above
        Other profit and loss items that meet the definition of
        non-recurring gains and losses
        Subtotal                                                           77,711,453.16
        Less: income tax impact
        Changes in the amount of minority interests (after tax)             2,763,648.15
                                    Total                                  74,947,805.01


(II) Return on equity and earnings per share

                                             Weighted                Earnings per share (RMB)
                                            average rate
           Profit during the reporting
                                            of return on    Basic earnings per        Diluted earnings
                     period
                                             net assets           share                  per share
                                                (%)
        Net profit attributable to
        ordinary shareholders of the             0.2854                    0.0069               0.0069
        Company
        Net profit attributable to
        ordinary shareholders of the
                                                 -4.8578                   -0.1174             -0.1174
        Company after deducting non-
        recurring gains and losses




                                                                Shenzhen Nanshan Power Co., Ltd.


                                                                                         (Official seal)


                                                                                        April 10, 2024




                            Notes to the Financial statements    Page 95