Stock Code：000037, 200037 Stock Code：2010-057
Short Form of the Stock：Shennandian A, Shennandian B
Shenzhen Nanshan Power Co., Ltd.
The Third Quarterly Report for 2010(Full Text)
§1. Important Notes
1.1 Board of Directors and the Supervisory Committee of Shenzhen Nanshan Power Co., Ltd.
(hereinafter referred to as the Company) and its directors, supervisors and senior executives hereby
confirm that there are no any fictitious statements, misleading statements, or important omissions
carried in this report, and shall take all responsibilities, individual and/or joint, for the reality,
accuracy and completion of the whole contents.
1.2 No directors, supervisors, and senior executives stated that they couldn’t ensure the correctness,
accuracy and completeness of the contents of the report or they have objection for this report.
1.3 All the directors presented the board meeting on discussing the Third Quarterly Report except
for the following directors.
Name of
absent directors
Positions of absent
directors
Reasons for absence from the
meeting Name of entrustee
Wang Jianbin Deputy chairman Due to business Director-Li Hongsheng
Yu Chunling Director Due to business Director- Huangfu Han
He Yingyi Director Due to business Deputy chairman - Sun Yulin
1.4 The Third Quarterly Financial Report of 2010 has not been audited by CPAs.
1.5 Chairman of the Board Yang Haixian, Director and General Manager Fu Bo, CFO Lu Xiaoping
and Manager of Financial Dept. Huang Jian hereby confirm that the Financial Report of the Third
Quarterly Report is true and complete.
1.6 This report is prepared both in Chinese and in English. Should there be any difference in
interpretation of the text between the two versions, the Chinese version shall prevail.
§2. Company Profile
2.1 Main accounting highlights and financial indexes:
Unit: RMB
2010.9.30 2009.12.31 Increase/decrease
scope (%)
Total assets (RMB) 5,086,264,314.90 4,926,596,324.59 3.24%
Owners’ equities attributable to the
shareholders of listed company
(RMB)
1,690,974,736.12 1,847,287,676.40 -8.46%
Share capital (Share) 602,762,596.00 602,762,596.00 0.00%
Net assets per share attributable to the
shareholders of listed company
(RMB/Share)
2.81 3.06 -8.46%
July-Sep. 2010
Increase/decrease
over the same
period of the last
year (%)
Jan.-Sep. 2010
Increase/decrea
se over the
same period of
the last year
(%)
Total operating income (RMB) 489,529,720.36 -19.65% 1,192,389,394.97 -19.86%
Net profit attributable to the
shareholders of listed company
(RMB)
98,760,595.50 -7.63% -156,312,940.28 -193.11%
Net cash flow arising from operating -23,742,721.02 -111.11% -91,084,963.25 -138.45%2
activities (RMB)
Net cash flow arising from operating
activities per share (RMB/Share) -0.04 -111.11% -0.15 -138.45%
Basic earnings per share (RMB/Share) 0.16 -7.63% -0.26 -193.11%
Diluted earnings per share
(RMB/Share) Inapplicable - Inapplicable -
Weighted average return on equity (%) 6.02% 6.22% -8.84% -197.74%
Weighted average return on equity
after deducting non-recurring
gains/losses (%)
6.01% 9.53% -8.85% -203.14%
Items of non-recurring gains and losses Amount from year begin to the end
of report period
Gains/losses arising from disposal of non-current assets 413,905.79
Other non-operating income and expenditure beside for the aforementioned
items -80,000.00
Impact on equity of minority shareholders(after-tax) -97,580.95
Total 236,324.84
2.2 Total number of shareholders at the end of the report period and shares held by the top
ten shareholders with unrestricted conditions
Unit: Share
Total number of shareholders
at the end of report period 48,006
Particulars about the shares held by the top ten shareholders with unrestricted conditions
Name of shareholder Unrestricted
shares held Type of shares
Shenzhen Guangju Investment Holding Co., Ltd. 109,715,584 RMB ordinary share
HONG KONG NAM HOI (INTERNATIONAL)
LIMITED 92,123,248 Domestically listed foreign share
SHENZHEN ENERGY (GROUP) CO., LTD. 65,106,130 RMB ordinary share
BNP P P/PAND INVESTMENT CO., LTD. 49,426,518 Domestically listed foreign share
STATE GRID SHENZHEN ENERGY
DEVELOPMENT (GROUP) CO., LTD 35,999,805 RMB ordinary share
YAN TIAN GONG 3,340,000 Domestically listed foreign share
CHEN JI SHAN 2,628,150 RMB ordinary share
Zhongshan Changli Real Estate Development Co., Ltd. 1,770,000 RMB ordinary share
ZHOU ZHU LIN 1,538,478 RMB ordinary share
Goldbond Securities Holding Co., Ltd. 1,500,000 Domestically listed foreign share
§3. Significant events
3.1 Particulars about material changes in items of main accounting statement and financial
index, and explanations of reasons
√Applicable □Inapplicable
(1)Particulars about profit statement
Item Change
scope Main reasons
Investment income -11371.25%
RMB 29.944 million investment losses in
Jiangxi CPI Xinchang Power Generation Co.,
Ltd.
Income tax expense 101.51% Increase of income tax from subordinates3
Net profit attributable to owners of
parent company
-193.11%
Rise of generated fuel cost, unit maintenance
in Zhongshan Nanlang Power Plant, technical
reform of LNG and investment losses in
Jiangxi CPI Xinchang Power Generation Co.,
Ltd.
(2)Particulars about balance sheet
Item Change
scope Main reasons
Note receivable 250.00% Increase of bank acceptance
Account receivable 39.02% Mainly due to the receivable power subsidy
predicted by Nanshan Thermal Power Plant
Account paid in advance 223.33% Account paid in advance to suppliers for good
increased
Other account receivable 128.41%
Margin of natural gas purchased by
Shennandian Power (Zhongshan) Co., Ltd.
increased newly
Long-term expenses to be apportioned -34.12% The decoration account of office buildings of
engineering company has been amortized.
Note payable -100.00% Bank acceptance of raw material purchased
decreased.
Account payable 421.69% Increase of account payable to suppliers for
good.
Account receivable in advance 4677.37%
Mainly due to the increase of account
received in advance for capacity and
engineering.
Long-term liabilities due within one
year -100.00% Returned loans
Long-term loans 51.28% Long-term loans increased
Other non-current liabilities 38.96%
Subsidy of national debts of Shenzhen
Shennandian Environmental Co., Ltd.
increased.
(3)Particulars about cash flow
statement
Item Change
scope Main reasons
Net cash flow arising from operating
activities
Decreased
RMB
327,957,800
Growth of fuel cost correspondingly raised the
“Cash paid for purchasing commodities and
receiving labor service”
Net cash flow arising from investment
activities
Increased
RMB
168,916,100
Decrease of expenditure on purchased and
construction of fixed assets and cash paid for
investment decreased.
Net cash flow arising from financing
activities
Increased
RMB
344,375,400
Increase of loan scale
3.2 Progress of significant events, their influences, and analysis and explanation of their
solutions
3.2.1 Qualified opinion
√Applicable □Inapplicable
In the year of 2009, the auditing report of qualified audit opinions with explanatory notes has been issued by
Deloitte CPA Limited. In the report period, the events involved in modified opinion have no update
progress.( more details in announcement No. 2010-011 published on 13 April 2010)4
3.2.2 Particular about fund offers to controlling shareholders or associated parties and
external guarantee that against the regulation.
□Applicable √Inapplicable
3.2.3 Particular about signing and implementation on significant contracts of ordinary
management.
□Applicable √Inapplicable
3.2.4 Others
□Applicable √Inapplicable
3.3 Implementations of commitments by the Company, shareholders and actual controller
□Applicable √Inapplicable
3.4 Estimation of accumulative net profit from the beginning of the year to the end of next
report period to be loss probably or the warning of its material change compared with the
corresponding period of the last year and explanation of reason
□Applicable √Inapplicable
3.5 Particulars about other significant events which needed explanations
3.5.1 Particulars about securities investment
□Applicable √Inapplicable
3.5.2 Activities on receiving research, communication and interview in the report period
There received one investor for spot research and interviewed, and mainly through the way of daily
telephone inquiry in the report period.
Date Place Way Investor Contents discussed and materials
supplied
2010.8.3 The
Company
spot
research
Robotti& Company
Fund manager General information of the Company
3.6 Particulars about derivatives investment
□Applicable √Inapplicable
3.6.1 Particular about derivatives investment held at period-end
□Applicable √Inapplicable
§4. Appendix
4.1 Balance Sheet
Prepared by Shenzhen Nanshan Power Co., Ltd. Sep. 30, 2010 Unit: RMB
Balance at Items Consolidation pePriaorde-netn Cd ompany ConsolBidaaltaionnce at yePara-rbeengt iCn ompany
Current assets:
Monetary funds 477,131,570.81 256,387,430.02 379,162,100.63 35,564,935.05
Settlement provisions
Capital lent
Transaction finance
asset
Notes receivable 700,000.00 200,000.005
Accounts receivable 472,297,327.81 249,693,799.52 339,735,079.02 86,395,444.92
Accounts paid in
advance 14,290,608.69 461,395.71 4,419,870.02 2,359,390.63
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Interest receivable
Dividend receivable 597,875,904.41 597,875,904.41
Other receivables 27,718,225.94 880,764,417.11 12,135,292.96 871,865,434.98
Purchase restituted
finance asset
Inventories 1,350,599,924.55 176,800,478.91 1,344,705,190.19 195,072,444.79
Non-current asset due
within one year
Other current assets 443,080,000.00 240,000,000.00
Total current assets 2,342,737,657.80 2,605,063,425.68 2,080,357,532.82 2,029,133,554.78
Non-current assets:
Granted loans and
advances
Finance asset available
for sales
Held-to-maturity
investment
Long-term account
receivable
Long-term equity
investment 258,489,943.39 749,012,793.15 262,754,150.41 753,277,000.17
Investment property 8,041,294.83 8,550,910.89
Fixed assets 2,149,731,546.76 321,912,228.20 2,286,167,921.21 355,995,467.10
Construction in progress 250,196,941.10 64,347,461.44 203,626,585.32 46,316,005.30
Engineering material
Disposal of fixed asset -141,748.73 5,875,631.20
Productive biological
asset
Oil and gas asset
Intangible assets 56,292,126.32 898,713.31 58,188,188.59 1,368,935.26
Expense on Research
and Development
Goodwill
Long-term expenses to
be apportioned 306,711.18 199,894.67 465,561.90 284,795.36
Deferred income tax
asset 20,609,842.25 16,949,151.06 20,609,842.25 16,949,151.06
Other non-current asset
Total non-current asset 2,743,526,657.10 1,153,320,241.83 2,846,238,791.77 1,174,191,354.25
Total assets 5,086,264,314.90 3,758,383,667.51 4,926,596,324.59 3,203,324,909.03
Current liabilities:
Short-term loans 2,907,000,000.00 2,197,000,000.00 2,419,120,000.00 1,499,000,000.00
Loan from central bank
Absorbing deposit and6
interbank deposit
Capital borrowed
Transaction financial
liabilities
Notes payable 68,210,216.75
Accounts payable 109,273,631.87 58,767,565.95 20,945,942.55 8,379,394.63
Accounts received in
advance 28,138,683.35 14,586,000.00 589,000.00
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 50,874,471.45 33,646,640.02 45,213,658.24 25,524,730.72
Taxes payable -467,525,866.90 -404,168,820.72 -400,141,494.43 -358,913,337.70
Interest payable 3,070,582.48 3,070,582.48 3,121,564.50 3,998,222.73
Dividend payable
Other accounts payable 342,682,929.32 371,131,796.10 353,795,654.34 363,707,613.87
Reinsurance payables
Insurance contract
reserve
Security trading of
agency
Security sales of agency
Non-current liabilities
due within 1 year 200,000,000.00 110,000,000.00
Other current liabilities
Total current liabilities 2,973,514,431.57 2,274,033,763.83 2,710,854,541.95 1,651,696,624.25
Non-current liabilities:
Long-term loans 236,000,000.00 156,000,000.00
Bonds payable
Long-term account
payable
Special accounts
payable
Projected liabilities
Deferred income tax
liabilities
Other non-current
liabilities 5,350,000.00 3,850,000.00
Total non-current liabilities 241,350,000.00 159,850,000.00
Total liabilities 3,214,864,431.57 2,274,033,763.83 2,870,704,541.95 1,651,696,624.25
Owner’s equity (or
shareholders’ equity):
Paid-in capital (or share
capital) 602,762,596.00 602,762,596.00 602,762,596.00 602,762,596.00
Capital public reserve 363,629,927.51 288,769,132.47 363,629,927.51 288,769,132.47
Less: Inventory shares
Reasonable reserve
Surplus public reserve 332,908,397.60 332,908,397.60 332,908,397.60 332,908,397.60
Provision of general risk
Retained profit 391,673,815.01 259,909,777.61 547,986,755.29 327,188,158.717
Balance difference of
foreign currency translation
Total owner’s equity
attributable to parent
company
1,690,974,736.12 1,484,349,903.68 1,847,287,676.40 1,551,628,284.78
Minority interests 180,425,147.21 208,604,106.24
Total owner’s equity 1,871,399,883.33 1,484,349,903.68 2,055,891,782.64 1,551,628,284.78
Total liabilities and owner’s
equity 5,086,264,314.90 3,758,383,667.51 4,926,596,324.59 3,203,324,909.03
4.2 Profit statement in the report period
Prepared by Shenzhen Nanshan Power Co., Ltd. July-Sep. 2010 Unit: RMB
Items ConsolAidmatoiounn t in thiPsa preenrito Cd ompany ConsolAidmatoiounn t in lasPta preenrito Cd ompany
I. Total operating income 489,529,720.36 130,119,449.05 609,216,822.80 120,118,088.71
Including: Operating income 489,529,720.36 130,119,449.05 609,216,822.80 120,118,088.71
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 738,135,428.29 261,211,312.77 665,770,098.03 146,109,815.62
Including: Operating cost 683,057,552.38 243,591,812.97 608,369,918.54 133,214,239.28
Interest expense
Commission charge and
commission expense
Cash surrender value
Net amount of expense
of compensation
Net amount of
withdrawal of insurance
contract reserve
Bonus expense of
guarantee slip
Reinsurance expense
Operating tax and extras 1,199,482.41 946,732.09 1,728,183.48 1,164,967.39
Sales expenses 190,277.74 232,616.78
Administration
expenses 21,416,733.76 4,468,512.76 26,223,618.58 4,974,646.71
Financial expenses 32,271,382.00 12,204,254.95 29,215,760.65 6,755,962.24
Losses of devaluation of
asset
Add: Changing income
of fair value(Loss is listed
with “-”)
Investment income
(Loss is listed with “-”) 2,240,246.26 2,240,246.26 266,089.80 266,089.80
Including: Investment
income on affiliated
company and joint venture
2,240,246.26
Exchange income (Loss
is listed with “-”)
III. Operating profit (Loss
is listed with “-”) -246,365,461.67 -128,851,617.46 -56,287,185.43 -25,725,637.118
Add: Non-operating
income 333,544,862.00 249,219,000.00 196,464,968.34 -34,142,200.00
Less: Non-operating
expense 50,250.00 -12,871.80
Including: Disposal loss
of non-current asset -1,840.00
IV. Total Profit (Loss is
listed with “-”) 87,129,150.33 120,367,382.54 140,190,654.71 -59,867,837.11
Less: Income tax
expense 71,077.99
V. Net profit (Net loss is
listed with “-”) 87,129,150.33 120,367,382.54 140,119,576.72 -59,867,837.11
Net profit attributable to
owner’s of parent company 98,760,595.50 120,367,382.54 106,914,277.39 -59,867,837.11
Minority shareholders’
gains and losses -11,631,445.17 33,205,299.33
VI. Earnings per share:
i. Basic earnings per share 0.16 0.20 0.18 -0.099
ii. Diluted earnings per share 0.16 0.18
VII. Other consolidated
income
VIII. Total consolidated
income 87,129,150.33 120,367,382.54 140,119,576.72 -59,867,837.11
Total consolidated income
attributable to owners of
parent company
98,760,595.50 120,367,382.54 106,914,277.39 -59,867,837.11
Total consolidated income
attributable to minority
shareholders
-11,631,445.17 33,205,299.33
4.3 Profit statement from year-begin to the end of report period
Prepared by Shenzhen Nanshan Power Co., Ltd. Jan.-Sep. 2010 Unit: RMB
Amount i Items Consolidation n thiPsa preenrito Cd ompany ConsolAidmatoiounn t in lasPta preenrito Cd o mpany
I. Total operating income 1,192,389,394.97 297,174,493.86 1,487,870,813.13 295,503,716.54
Including: Operating income 1,192,389,394.97 297,174,493.86 1,487,870,813.13 295,503,716.54
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 1,851,084,520.02 583,680,232.94 1,649,382,307.95 360,846,564.78
Including: Operating cost 1,686,306,958.07 538,499,153.58 1,469,557,913.14 324,684,701.26
Interest expense
Commission charge and
commission expense
Cash surrender value
Net amount of expense
of compensation
Net amount of
withdrawal of insurance
contract reserve
Bonus expense of
guarantee slip9
Reinsurance expense
Operating tax and extras 4,170,952.63 2,633,585.19 5,252,656.96 3,289,987.19
Sales expenses 655,224.21 730,383.57
Administration
expenses 68,440,009.45 12,296,534.94 80,189,893.53 12,260,219.76
Financial expenses 91,511,375.66 30,250,959.23 93,651,460.75 20,611,656.57
Losses of devaluation of
asset
Add: Changing income
of fair value(Loss is listed
with “-”)
Investment income
(Loss is listed with “-”) -29,991,642.02 -29,991,642.02 266,089.80 266,089.80
Including: Investment
income on affiliated
company and joint venture
-29,991,642.02 -29,991,642.02
Exchange income (Loss
is listed with “-”)
III. Operating profit (Loss
is listed with “-”) -688,686,767.07 -316,497,381.10 -161,245,405.02 -65,076,758.44
Add: Non-operating
income 504,964,507.98 249,219,000.00 376,721,101.50 -79,769.00
Less: Non-operating
expense 82,110.00 43,198.57
Including: Disposal loss
of non-current asset
IV. Total Profit (Loss is
listed with “-”) -183,804,369.09 -67,278,381.10 215,432,497.91 -65,156,527.44
Less: Income tax
expense 687,530.22 341,181.77
V. Net profit (Net loss is
listed with “-”) -184,491,899.31 -67,278,381.10 215,091,316.14 -65,156,527.44
Net profit attributable to
owner’s of parent company -156,312,940.28 -67,278,381.10 167,875,933.60 -65,156,527.44
Minority shareholders’
gains and losses -28,178,959.03 47,215,382.54
VI. Earnings per share
i. Basic earnings per share -0.26 -0.11 0.28 -0.108
ii. Diluted earnings per share -0.26 -0.11 0.28 -0.108
VII. Other consolidated
income
VIII. Total consolidated
income -184,491,899.31 -67,278,381.10 215,091,316.14 -65,156,527.44
Total consolidated income
attributable to owners of
parent company
-156,312,940.28 -67,278,381.10 167,875,933.60 -65,156,527.44
Total consolidated income
attributable to minority
shareholders
-28,178,959.03 47,215,382.54
4.4 Cash flow statement from year-begin to the end of report period
Prepared by Shenzhen Nanshan Power Co., Ltd. Jan.-Sep. 2010 Unit: RMB
Amount i Items Consolidation n thiPsa preenrito Cd ompany ConsolAidmatoiounn t in lasPta preenrito Cd o mpany10
I. Cash flows arising from
operating activities:
Cash received from
selling commodities and
providing labor services
1,736,722,844.79 1,011,343,051.22 1,839,361,452.69 931,359,215.80
Net increase of
customer deposit and
interbank deposit
Net increase of loan
from central bank
Net increase of capital
borrowed from other
financial institution
Cash received from
original insurance contract
fee
Net cash received from
reinsurance business
Net increase of insured
savings and investment
Net increase of disposal
of transaction financial asset
Cash received from
interest, commission charge
and commission
Net increase of capital
borrowed
Net increase of returned
business capital
Write-back of tax
received 12,491,186.88
Other cash received
concerning operating
activities
54,029,970.84 297,745,466.68 27,521,556.44 715,718,664.08
Subtotal of cash inflow
arising from operating
activities
1,790,752,815.63 1,309,088,517.90 1,879,374,196.01 1,647,077,879.88
Cash paid for
purchasing commodities and
receiving labor service
1,646,427,123.93 911,460,819.05 1,397,844,952.95 546,735,923.11
Net increase of
customer loans and advances
Net increase of deposits
in central bank and interbank
Cash paid for original
insurance contract
compensation
Cash paid for interest,
commission charge and
commission
Cash paid for bonus of
guarantee slip
Cash paid to/for staff
and workers 65,778,115.87 32,707,700.95 74,451,832.15 42,205,268.75
Taxes paid 97,501,132.13 8,413,084.47 120,665,909.05 55,763,429.87
Other cash paid 72,131,406.95 601,903,293.85 49,538,693.54 933,044,828.2611
concerning operating
activities
Subtotal of cash outflow
arising from operating
activities
1,881,837,778.88 1,554,484,898.32 1,642,501,387.69 1,577,749,449.99
Net cash flows arising
from operating activities -91,084,963.25 -245,396,380.42 236,872,808.32 69,328,429.89
II. Cash flows arising from
investing activities:
Cash received from
recovering investment
Cash received from
investment income 266,089.80 266,089.80
Net cash received from
disposal of fixed, intangible
and other long-term assets
11,633,762.50 577,520.00
Net cash received from
disposal of subsidiaries and
other units
34,730,422.00 34,730,422.00
Other cash received
concerning investing
activities
Subtotal of cash inflow
from investing activities 46,364,184.50 34,730,422.00 843,609.80 266,089.80
Cash paid for
purchasing fixed, intangible
and other long-term assets
52,743,798.42 26,547,760.91 115,368,625.55 27,883,830.77
Cash paid for
investment 60,457,857.00 60,457,857.00 121,228,572.00 121,228,572.00
Net increase of
mortgaged loans
Net cash received from
subsidiaries and other units
Other cash paid
concerning investing
activities
Subtotal of cash outflow
from investing activities 113,201,655.42 87,005,617.91 236,597,197.55 149,112,402.77
Net cash flows arising
from investing activities -66,837,470.92 -52,275,195.91 -235,753,587.75 -148,846,312.97
III. Cash flows arising from
financing activities
Cash received from
absorbing investment
Including: Cash
received from absorbing
minority shareholders’
investment by subsidiaries
Cash received from
loans 2,919,000,000.00 1,817,000,000.00 2,819,661,079.03 1,317,000,000.00
Cash received from
issuing bonds
Other cash received
concerning financing
activities
Subtotal of cash inflow 2,919,000,000.00 1,817,000,000.00 2,819,661,079.03 1,317,000,000.0012
from financing activities
Cash paid for settling
debts 2,551,120,000.00 1,229,000,000.00 2,792,716,583.33 1,146,366,140.00
Cash paid for dividend
and profit distributing or
interest paying
111,984,720.86 69,504,026.89 115,424,663.13 72,130,593.21
Including: Dividend and
profit of minority
shareholder paid by
subsidiaries
Other cash paid
concerning financing
activities
Subtotal of cash outflow
from financing activities 2,663,104,720.86 1,298,504,026.89 2,908,141,246.46 1,218,496,733.21
Net cash flows arising
from financing activities 255,895,279.14 518,495,973.11 -88,480,167.43 98,503,266.79
IV. Influence on cash and
cash equivalents due to
fluctuation in exchange rate
-3,374.79 -1,901.81 -5,207.42 223.09
V. Net increase of cash and
cash equivalents 97,969,470.18 220,822,494.97 -87,366,154.28 18,985,606.80
Add: Balance of cash
and cash equivalents at the
period -begin
356,362,100.63 35,564,935.05 429,507,715.29 29,272,846.21
VI. Balance of cash and cash
equivalents at the period -end 454,331,570.81 256,387,430.02 342,141,561.01 48,258,453.01
4.5 Auditing Report
Auditing opinion: Un-audited
