深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
SHENZHEN NANSHAN POWER CO., LTD
Semi-Annual Report 2011
Notice No.: 2011－047
August 9, 2011
Important Notice
The Board of Directors and its directors, Supervisory Committee and its supervisors, senior executives of
Shenzhen Nanshan Power Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there
are no false recordation, misleading statements or material omissions carried in this report, and shall take
all responsibilities, individually and/or jointly, for the reality, accuracy and completeness of the whole
contents.
No director, supervisor and senior executive stated that he (she) couldn’t ensure the correctness, accuracy
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深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
and completeness of the contents of the Semi-annual Report or have objection to this report.
Deputy Chairman—Sun Yulin and Director Jiang Xiaojun did not present the meeting due to work, and
entrusted Director Fu Bo to attend and vote on his behalf respectively.
The Semi-annual Financial Report 2011 of the Company has not been audited.
Chairman of the Board Mr. Yang Haixian, General Manager Mr. Fu Bo, CFO Mr. Lu Xiaoping and
Manager of Financial Department Mr. Huang Jian hereby confirm the truthfulness and completeness of
the Financial Report in the Semi-annual Report 2011.
This report has been prepared in Chinese and English version respectively. In the event of differences in
interpretation between the two versions, the Chinese report shall prevail.
Content
I. Company Profile-----------------------------------------------------------------------04
II.Changes in Share Capital and Particulars about Shareholders-------------07
III. Particulars about Directors, Supervisors and Senior Executives----------10
IV. Report of the Board of Directors -------------------------------------------------11
V. Significant Events----------------------------------------------------------------------14
VI. Financial Report (Un-audited) ----------------------------------------------------22
VII. Documents Available for Reference----------------------------------------------22
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深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
I. Company Profile
(I) Basic Information
1. Legal Name of the Company:
In Chinese: 深圳南山热电股份有限公司
In English: Shenzhen Nanshan Power Co., Ltd.
2. Legal Representative: Yang Haixian
3. Secretary of the Board: Hu Qin
Tel: (0755)26948888
Fax :( 0755)26003684
E-mail: investor@nspower.com.cn
Contact address: 16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, China.
4. Registered Address: No.2097 Yueliangwan Avenue, Nanshan District, Shenzhen,
China.
Post Code: 518052
Office Address: 16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, China
Post Code: 518053
Website: http://www.nsrd.com.cn
E-mail: public@nspower.com.cn
5. Newspapers Designated for publishing notices: Securities Times ,China Securities Journal and Hong
Kong Comercial Daily.
Website desinated by China Securities Regulatory Committee for publishing semi-annual report:
http://www.cninfo.com.cn
Place Where the Semi-Annual Report is Prepared and Placed: Secretariat of the Board
6. Stock Exchange Listed with: Shenzhen Stock Exchange
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深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
Short Form of the Stock and Stock Code: Shen Nan Dian A 000037
Shen Nan Dian B 200037
7. Other Relevant Information:
Initial Registration Date: April 6, 1990
Initial Registration Address: Nanshan Jiaozui, Nanshan District, Shenzhen
Registration Address after the Change: No.2097Yueliangwan Avenue, Nanshan District, Shenzhen
Registration code of the enterprise business license: 440301501125497
Registration code of taxation: YSW Zi No. 440305930100069 (14)
Organization Code: 61881512－1
8. Definition
Company, the Company: Shenzhen Nanshan Power Co., Ltd.
Xiefu Company: Shenzhen Xiefu Fuel Supply Co., Ltd. whose 50% shares held by the
Company;
New Power Company: Shenzhen New Power Industrial Co., Ltd. whose 100% equity
is held by the Company;
Singapore Company: Shennandian (Singapore) Co., Ltd. whose 100% equity is held by the Company;
Syndisome Company: HONG KONG SYNDISOME CO., LIMITED;
Shennandian Engineering Company: Shennandian Turbine Engineering Technology Co., Ltd. whose
100% equity is held by the Company;
Shennandian Zhongshan Co., Ltd.: Shennandian (Zhongshan) Electric Power Co., Ltd. whose 80% equity
is held by the Company;
Shennandian Dongguan Company: Shennandian (Dongguan) Weimei Electric Power Co., Ltd. Whose
70% equity is held by the Company;
Shennandian Envionment Protection Company: Shenzhen Shennandian Envionment Protection Co., Ltd.
Whose 100% equity is held by the Company;
Shenzhen Energy Environmental Corporation: Shenzhen Energy Environmental Co., Ltd. Whose 10%
equity is held by the Company;
Nanshan Power Factory: Nanshan Power Factory who is the second degree institution of Shenzhen
Nanshan Power Co., Ltd.;
Zhongshan Nam Long Power Plant: Zhongshan Nam Long Power Plant of Shennandian (Zhongshan)
Electric Power Co., Ltd.;
Dongguan Gaobu Power Plant: Dongguan Gaobu Plant of Shennandian (Dongguan) Weimei Electric
Power Co., Ltd.;
Shenzhong Zhiye Company: refers to Shenzhen Zhongshan Real Estate Investment Properties Co., Ltd
whose 75% equity is held by the Company
Shenzhong Real Estate Company: Zhongshan Shenzhong Real Estate Investment Property Co., Ltd.
whose 75% equity is held by the Company;
Jiangxi Xinchang Company: China Power Investment Xinchang Power Generation Co., Ltd. of Jiangxi;
Jiangxi Pengze Nuclear Power Company: China Power Investment Jiangxi Nuclear Power Co., Ltd.
whose 5% equity is held by the Company;
CSRC: China Securities Regulatory Committee;
SZSRC: Shenzhen Supervision Municipal of China Securities Regulatory Committee;
SZSE: Shenzhen Stock Exchange;
Designated newspapers: Securities Times ,China Securities Journal and Hong Kong Comercial Daily;
RMB: Unless otherwise specified, the standard currency in the financial data or unit refers to Renminbi.
(II) Major Financial Data and Indexes
1. Major accounting data and financial indexes
Unit: RMB
At the end of this At the Increase/decrease
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深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
report period period-end of at the end of this
last year report period
compared with
that in period-end
of last year (%)
Total assets 5,577,828,199.72 5,278,954,349.90 5.66%
Owners’ equity attributable to
1,650,986,621.15 1,735,842,488.46 -4.89%
shareholders of the listed company
Share capital 602,762,596.00 602,762,596.00 0.00%
Net assets per share attributable to
shareholders of the listed 2.74 2.88 -4.89%
company(RMB/Share)）
Increase/decrease
This report period The same period in this report
(Jan. to Jun.) of last year period
year-on-year (%)
Total operating income 1,143,413,610.78 702,859,674.61 62.68%
Operating profit -676,784,833.99 -442,321,305.40 53.01%
Total profit -87,767,475.29 -270,933,519.42 -67.61%
Net profit attributable to shareholders of
-84,855,867.31 -255,073,535.78 -66.73%
the listed company
Net profit attributable to shareholders of
the listed company after deducting -146,853,231.11 -255,262,197.62 -42.47%
non-recurring gains and losses
RMB 0.28 /Share
Basic earnings per share (RMB/Share)
-0.14 -0.42 increased
Diluted earnings per share (RMB/Share) Inapplicable Inapplicable -
9.82 percentage
Return on equity (%) -5.01% -14.83%
points increased
Net cash flow arising from operating RMB 105,831,200
38,488,966.75 -67,342,242.23
activities increased
Net cash flow per share arising from RMB 0.1756
0.0639 -0.1117
operating activities (RMB/Share) /Share increased
2. Items of non-recurring gains and losses
Unit: RMB
Amount Amount
Item occurred this occurred the year
period before
Gains and losses from disposal of
-1,840.00
non-current assets
Governmental subsidy calculated into current
gains and losses(while closely related with
the normal business of the Company,
- -
excluding the fixed-amount or
fixed-proportion governmental subsidy
according to the unified national standard)
Gains/losses from debt reorganization - -
Impairment provision of account receivable
with impairment testing conducted - -
independently reversal.
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深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
Other non-operating income and expenditure
72,907,122.30 250,055.79
beside for the aforementioned items
Impact on income tax -3,488,388.29 -
Influenced amount of minority shareholders’
-7,421,370.20 -59,553.95
equity(after-tax)
Total 61,997,363.80 188,661.84
3. Appendix table of profit statement
Earnings per share
Weighted average ROE Diluted
Profit for the report period Basic earnings
(%) earnings per
per share
share
Net profit attributable to
shareholders of ordinary shares -5.01 -0.14 Inapplicable
of the Company
Net profit attributable to
shareholders of ordinary shares
of the Company after -8.67 -0.24 Inapplicable
deducting non-recurring gains
and losses
4. There is no provision of assets depreciation occurred in the report period.
5. Difference under CAS and IAS
In the report period, there were no differences between net profit attributable to shareholders of listed
company and the owners’ equities calculated based on CAS and IAS.
II. Change in Share Capital and Particulars about Shareholders
(I) Changes in share capital
1. Statement of changes in shares (As at June 30, 2011) (Unit: Share)
Increase/Decrease in the Change (+,
Before the Changes After the Changes
-)
Public
Newly
Content reserve
Proporti - Bonus Subtot Proporti
Amount -conve Others Amount
on (%) issued shares al on (%)
rted
shares
shares
I. Restricted shares 12,993 0.002 5,270 5,270 18,263 0.0023
1. State-owned shares
2. State-owned legal
0 0
person’s shares
3. Other domestic
shares
Including: Domestic
non-state-owned legal
person’s shares
Domestic natural
person’s shares
4. Foreign shares
Including: Foreign
legal person’s shares
Foreign natural
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深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
person’s shares
5. Senior executives’
12,993 0.002 5,270 5,270 18,263 0.0023
shares
II. Unrestricted shares 602,749,603 99.998 -5,270 -5,270 602,744,333 99.997
1. RMB Ordinary
338,895,157 56.224 -1,145 -1,145 338,894,012 56.223
shares
2. Domestically listed -4,125 -4,125
263,854,446 43.774 263,850,321 43.774
foreign shares
3. Overseas listed
foreign shares
4. Others
III. Total shares 602,762,596 100 0 0 602,762,596 100
[Note] No changes on total share amount or share capital structure occurred during the report period.
(II) Particulars on shares held by top ten shareholders and top ten shareholders with unrestricted
conditions
Ended by the report period, the Company owes 46,277 shareholders in total, of them, 30,535 shareholders
of A-share, and 15,742 shareholders of B-share.
Unit: Share
Total amount of shareholders at
46,277
the end of report
Particulars about the shares held by the top ten shareholders
Proportio Amount of
Nature of Total Amount of the
n of shares
Full Name of shareholder shareholde amount of restricted
shares pledged or
rs shares held shares held
held frozen
State-own
SHENZHEN GUANGJU
ed legal 16.72% 100,769.712 0 0
INVESTMENT CO., LTD
person
Foreign
HONG KONG NAM HOI
legal 15.28% 92,123,248 0 0
(INTERNATIONAL) LIMITED
person
State-own
SHENZHEN ENERGY (GROUP)
ed legal 10.80% 65,106,130 0 0
CO., LTD.
person
Foreign
BNP P P/PAND INVESTMENT CO.,
legal 8.20% 49,426,518 0 0
LTD.
person
STATE GRID SHENZHEN State-own
ENERGY DEVELOPMENT ed legal 5.97% 35,999,805 0 0
(GROUP) CO., LTD. person
Domestic
YAN TIAN GONG natural 0.55% 3,300,000 0 Unknown
person
Domestic
LI WEI PING natural 0.39% 2,376,301 0 Unknown
person
Foreign
Jinbang Security Holding Co., Ltd legal 0.25% 1,500,000 0 Unknown
person
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深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
Domestic
WU SHU HUA natural 0.22% 1,351,400 0 Unknown
person
Foreign
ING ASIA PRIVATE BANK
legal 0.22% 1,325,561 0 Unknown
LIMITED
person
Particulars about the shares held by the top ten unrestricted shareholders
Amount of unrestricted shares
Full Name of shareholder Type of shares
held
SHENZHEN GUANGJU
100,769.712RMB ordinary share
INVESTMENT CO., LTD
HONG KONG NAM HOI Domestically listed
92,123,248
(INTERNATIONAL) LIMITED foreign share
SHENZHEN ENERGY (GROUP)
65,106,130RMB ordinary share
CO., LTD.
BNP P P/PAND INVESTMENT CO., Domestically listed
49,426,518
LTD foreign share
STATE GRID SHENZHEN
ENERGY DEVELOPMENT 35,999,805RMB ordinary share
(GROUP) CO., LTD.
Domestically listed
YAN TIAN GONG 3,300,000
foreign share
Domestically listed
LI WEI PING 2,376,301
foreign share
Domestically listed
Jinbang Security Holding Co., Ltd 1,500,000
foreign share
Domestically listed
WU SHU HUA 1,351,400
foreign share
ING ASIA PRIVATE BANK Domestically listed
1,325,561
LIMITED foreign share
1. Shenzhen Energy (Group) Co., Ltd. holds indirectly
100% equities of Hong Kong Nam Hoi (International)
Explanation on associated
Limited;
relationship among the top ten
2. Among other social public shareholders, the Company
shareholders or consistent action
did not know whether there were associated relationships or
belonging to consistent actors.
(III) Particulars about the changes on controlling stockholders and the actual controller
The Company has no controlling shareholder and actual controller, and this situation remains unchanged
in the report period.
III. Particulars about Directors, Supervisors and Senior
Executives
(I) Particulars about changes of shares held by directors, supervisors and senior executives
In the report period, there were no shares of the Company held by other directors and supervisors except
1,527 shares of A-stock and 5,500 shares of B-stock held respectively by staff supervisor Peng Bo and Li
Wenhui as well as 17,325 A-stock shares held by GM Zhang Jie.
(II) Changes of directors, supervisors and senior executives in the report period.
1. Original deputy chairman Mr. Wang Jianbin resigned position of deputy chairman dated 13th January
2011;
2. Original supervisor Ms. Chen Lihong resigned position of supervisor dated 13th January 2011;
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深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
3. Mr. Li Hong was elected as the deputy chairman of the Company by the Board dated 13th January
2011;
4. Mr. Zhen Dalei, Mr. Peng Bo, Ms. Li Huiwen and Mr. Tao Lin were elected as the staff representative
supervisor for the 6th Session of Supervisory on Meeting of Staff Representative dated 13th May 2011;
5. New session of the Board and Supervisory of the Company have been renewed dated 25th May 2011,
details of the 6th Session of the Board and Supervisory are as:
The 6th Session of the Board: Chairman: Yang Haixian; Deputy Chairman: Li Hongsheng, Sun Yulin;
Directors: Fu Bo, Huangfu Han, Yu Chunling, Zhou Qun, Chen Lihong and Jiang Xiaojun; Independent
Directors: Li Zheng, Wang Xiaodong, Wang Junsheng, Wu Xiaolei, Tang Tianyun and Pan Chengwei.
The 6th Session of the Supervisory: Chairman of Supervisory: Zhao Xiangzhi; Supervisors: Ma Fengming,
Ji Yuanhong and Wang Difei; Staff Supervisors: Zhen Dalei, Peng Bo, Li Huiwen and Tao Lin.
IV. Report of the Board of Directors
(I) Discussion and analysis on operational situation of the Company in the report
Period
In the report period, power demand in Guangdong province shows steady soaring for influences by
insufficient power resources added, decrease of the electricity of West to East Power transmission and the
lysteresis of power grid construction. Demand and supply for electricity within the province still intensify
continuously, the one-day stagger power consumption load almost reaches 6 million kilowatt and actual
load demand takes a break of 74 million kilowatt, higher the peak load of all province the year before of
71.5 million kilowatt. However, influenced by turbulence situation in oil-produce countries of
Middle-ease and North Africa and other geo-politics, gas price has a strong growth in first half year of
2011, cost of power fuel for gas turbine runs in a high price correspondingly and amount for power
subsidy demand soaring. Under the circumstances of insufficient capital resources for subsidiary, main
dept. of the province restricted the annual power volume of 9E gas turbine. Meanwhile, affected by
macro control of the Country, financing for the Company comes more and more difficult.
Confronted with severe market environment and operational dilemma, the Company persistently carries
forward the operational idea of “striving for survival and going through difficulties”. By strictly follow
the principle of safety production and economic powering, the Company higher its profitability in main
business of powering. Promoting the recycle economy and practice energy-saving and emission reduce
projects actively, semi-annual production and business planning of the Company gains a better results.
During the report period, system IC engine power station of the Company accumulated owes energy
output of 1.701 billion Kwhr, a 42.17% up y-o-y and completed 49.46% of the planning in whole year.
(II) Corporate Operation during the Report Period
The Company accumulatively realized operating income of RMB1,143,413,600 , 62.68% up over the
same period of last year, among which, RMB1,029,131,700 was realized by power and steam production
and supply and project contracted construction, 46.68% up over the same period of last year; RMB
114,281,800 was realized by other business, 9150% up over the same period the year before; Since the
fuel cost has increased, main business profit realized by power, steam and project contracted construction
amounted to RMB-498,166,100, 65.61% deficit increased over the same period of last year and other
industries reached profit of main business amounted to RMB 5,996,700, increase RMB 5,577,400
compared the same period of last year; net profit attributable to owners of the parent company amounted
to RMB -84,855,900, decrease RMB170,217,700 compare with same period of last year; earning per
share reached RMB-0.14/Share.
1. Statement of main operations classified according to industries and products
Unit: RMB’0000
Classified Increase Increase Increase or
Gross
according to Operating Operating or or decrease of gross
profit ratio
industries or revenue cost decrease decrease profit ratio over the
(%)
products of of last same period of
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深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
operating operating last year (%)
revenue cost over
over the the last
last same same
period of period of
last year last year
(%) (%)
Power 6.92 percentage
97,161.60 146,263.57 -50.54% 40.67% 47.45%
marketing points decreased
Thermal 20.07 percentage
431.12 662.30 -53.62% -13.63% -0.65%
marketing points decreased
Fuel marketing 2,668.89 2,300.58 13.80% 100.00% 100.00%
Engineering 24.94 percentage
2,528.57 2,257.03 10.74% 327.05% 492.64%
labor points decreased
Other revenue 123.00 1,246.31 -913.29% 100.00% 100.00%
2. Statement of main operations classified according to areas
Unit: RMB ‘0000
Increase/decrease in income
Areas Income from operations from operations over the
same period of last year (%)
Shenzhen 69,931.79 47.78%
Zhongshan 17,717.74 2931.37%
Dongguan 26,691.84 19.27%
3. In the report period, the profit composition, main operation and its structure of the Company did not
have significant change over the same period of last year.
4. Reason for significant change happened to the gross profit ratio of the report period over the same
period of last year: great increase in fuel cost.
5. During the report period, accounted by equity method, share-jointed company of the
Company—Jiangxi Xinchang Company suffers investment losses of RMB39, 857,500 with impact on net
profit of the Company reaching 46.97%.
(III) Investment in the report period
1. Application of raised proceeds
In the report period, the Company neither raised proceeds, nor had proceeds raised in former periods but
extended to use in the report period.
2. Investment of non-raised proceeds
(1) The sludge drying project
Project of sludge drying was put into operating since 1st of January 2011, payment standard of operating
cost was exercise by the bid price within the bidding purchasing with sole resources. However, the plan
of single source tender has not been approved by Financial Committee of the City. The Company entered
into no operational contract of sludge drying for the bid documents still in approval procedures from
Financial Committee currently. The Company actively contacts with relevant government dept. for
closely follow-up works and promoting tendering & bidding for completed as soon as possible with the
purpose of obtained the disposal charge for sludge. At present, comprehensive usage works on sludge
drying were conducted by the Company actively. No capital increased within the report period; as at end
of the report period, the Company accumulate invested RMB 55.3 million in total.
(2) Project of cooling, heating and power recycling economy
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深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
In the report period, the Company consolidated the project of CCHP into the Qianhai Planning actively
and perfected the research report of “Resolving Plan of Energy Integrity in Cooperation Zone of Qianhai
Shen-Gang Modern Service Industry by Mode of Intelligence and Low-Carbon”. Demonstration cooling
station for cooling, heating and power are start cooling since 1st April of 2011 with 6 days a week and 13
hours a day since 1st of June. No newly investment increase for the project within the report period.
(3) Project in Xinchang ,Jiangxi Province
Within the report period, the project completed power of 3.43974 billion Kwhr by generation (of which
transmission power of 0.335 billion Kwhr), completed 49.14% of the planning, grid power generation
finished 3.28 billion Kwhr, a 50% of the planning completed. Net profit realized RMB -139,368,300 with
seriously deficit due to the dramatically soaring of fuel price. No capital increased within the report
period; as at end of the report period, the Company accumulate invested RMB 286,285,700 in total.
(4) Nuclear Power Project in Peng Ze, Jiangxi Province
In report period, state council decided to cease the approval of nuclear power projects(including the
project of pre-phase conduction) after the nuclear accident occurred in Fukushima, Japan. There are 5
items of approval documents defer for approval due to the above reasons. Within the reporting period,
field-leveled construction of the project have been completed, 1# nuclear island meets the condition of
excavation, general contracting units of nuclear island and conventional islands are step in the field for
construction. The internal auditing for primary design was completed basically, and long-term equipment
contract have been signed. On 31st of May, the “Frame Agreement of Nuclear Island Contracting for
Phase I Peng Ze Nuclear Project” that entered into between China Power Investment Corporation and
State Nuclear Power Engineering Company and its memo were come into effect on 31st of May.
As at 30 June 2011, accumulate RMB 1,887.2 million were invested for the project, actually capital
received totaled RMB 727.27 million, totaled RMB 1,681,590,000 were financing accumulate. Till end of
the report period, accumulative capital of RMB 37.315.000 was invested by the Company in total.
(5) Shenzhen Energy Environment Company
Approaching zero-accident in report period with power generation amounting to 0.136 billion Kwhr,
48.42% of the planning completed; volume of the waste treatment totaled 448,100 tons completed,
47.17% of the planning completed.
In August of 2010, being decided by Shareholders’ Meeting of Shenzhen Energy Environment Company,
RMB 610.5 million was increased for register capital for project of Phase II of Bao’an construction and
expansion project of Phase II for Nanshan with 2 installments. Totaling RMB 478,810,000 was increased
dated 31st January 2011; resets of the RMB 131,690,000 will invest within 30 days after receiving the
Evaluation of Environment for Phase II of Nanshan Projects. Shenzhen Energy Environment Company
owes its register capital of RMB 1,028,400,000 after capital increased. Till recently, the Company
invested accumulative RMB 89,671,000(RMB 13,169,000 have not invested yet) in total.
(IV) Explanations by the Board of Directors on the matters involved in non-standard qualified opinion
issued by CPAs.
In 2010, Deloitte Huayong CPAs Co., Ltd. issued qualified auditor’s report with paragraph of emphasized
matters for the Company. During the report period, the matters involved in non-standard qualified
opinion have not any progress.
V. Significant Events
(I) Administration of the Company
In the report period, the Company operated in law and standardized its operation continuously in
accordance to Company Law, Securities Law, and Governing Principle for listed Companies, and
Management Method on Information Disclosure of Listed Company as well as Listing Rules for Stock in
Shenzhen Stock Exchange. The Company continuously perfect its governance structure, higher the
governance standard, strengthen information disclosure and standardized the operational for the Company.
The actual corporate management structure basically accorded with the regulations of relevant standard
documents on administration of listed company issued by CSRC.
Every special committee of the Shareholders’ Meeting, Board of Directors and Supervisory Committee as
well as managers were performing in a clearly responsibilities; the approval procedures were conducting
a regulated ways; perform duties in accordance with the laws without regulation violations. Concerning
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深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
the related transaction, external guarantee, material investment and information discloses, the Company
strictly exercise relevant approval procedures in line with relevant regulations and release the information
timely. Guarantee the legal interest of the Company and shareholders, minority shareholders in particular.
Pursuit to the requirement of “Notice of Standardized Pilot of Internal Control for Listed Companies in
Shenzhen Areas” SZJ GSZi No: 31[2011] issued form Shenzhen Securities Regulatory Bureau, the
Company combined actual conditions formulated the “Plan of Implementation for Internal Control of
Shenzhen Nanshan Power Co., Ltd.” that approved and deliberated by Meeting of the Board, relevant
information been disclosed on April 30. This plan is implementing recently.
(II) Profit distribution plan and its execution
There was no profit distribution plan, plan on public reserve conversion into shares or new share issuing
plan implemented in the report period which was drawn in the past.
There was no profit distribution preplan or plan on public reserve conversion into shares or equity
incentive proceeding in the report period.
(III) Significant lawsuit or arbitration
The Company had not involved in any significant lawsuit or arbitration during the report period.
(IV) Investment in securities
During the report period, the Company neither held equity in other listed companies or in financial
enterprises such as joint commercial banks, securities companies, insurance companies, trusted
companies and futures companies nor joint in companies intended to go listing.
(V) Significant purchase and sale of assets and enterprise combination in the report period
No event of assets purchase and sale as and enterprise combination occurred in the report period.
(VI) Significant related transaction
1. Related transaction related to daily operation
No related transaction that related to daily operational occurred in report period.
2. Related transaction incurred by purchase or sales of assets during the report period
No related transaction incurred by purchase or sales of assets during the report period.
3. Current related liabilities and debts
Unit: RMB
Funds offered to related parties Funds offer to listed company by
by listed company related parties
Related parties
Occurred Occurred
Balance Balance
amount amount
Xiefu Company - 6,279,664.17 -2,455,253.22 2,410,292.43
Shennandian
(Zhongshan) Power
Co., Ltd. 239,214,264.87 508,629,723.58 - -
Shenzhong Real
Estate Development
Co., Ltd. 10,918,413.30 677,004,186.72 - -
Shennandian
Engineering
Company - - -1,847,625.23 -
Shennandian
(Dongguan)
Company -110,741,527.27 53,318,668.57 - -
New Power Company - 597,875,904.41 -25,888,323.20 308,381,404.30
Shennandian -366,631.30 - 1,135,838.47 1,135,838.47
2 - 1 - 12
深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
Environment
Company
Shenzhen Energy
Group Co., Ltd. - - -1,158.78 510,249.91
Syndisome Company - - -8,277.48 1,813,776.55
Singapore Company - 31,072.34 - -
Mawan Power
Company - - -49,171.39 -
Moon Bay Oil
Company - - - -
Total 139,024,519.60 1,843,139,219.79 -29,113,970.83 314,251,561.66
(VII) Significant contracts of the Company and its implementation
1. During the report period, except that Shenzhen New Power Industrial Co., Ltd. continues to entrust the
Company to manage and operate the assets of project of power generating with waste heat, the Company
has not trusted, contracted and leased other companies’ assets nor has other companies trusted, contracted
and leased asset of listed company.
2. Particular about material contract in the report period
Being deliberated and approved by 4th Extraordinary Shareholders’ General Meeting of 2010, the
Company and Shennandian Dongguan Company were consented to enter into the Purchase Contract of
Nature Gas with Branch of Guangdong Trading, CNOOC Gas & Power Group and Guangdong Branch of
CNOOCrespectively. Among which, the Company (wholly-owned Nanshan Power Station) signed a
contract of 2-year term (January of 2011—December of 2012) while Shennandian Dongguan Company
has a 3-year tem contract signed (January of 2011 – December of 2013)(Notice No.: 2010-048, 2010-050
and 2010-058). Relevant contract is implementing.
3. During the report period, the Company has not entrusted others to manage cash assets.
(VIII) Significant guarantee
Unit: RMB’0000
Particulars about the external guarantee of the Company (the guarantee for subsidiaries from
subsidiaries)
Related
Compl
Announce Date of Actual
ete Guarantee
Name of the ment Amount happening amount
Guarant Imple for related
Company disclosure of (Date of of Guarantee type
ee term mentat party (Yes
guaranteed day and guarantee signing guarant
ion or or no)
Announce agreement) ee
not
ment No.
Shennandian Maximum
2009.4.30
(Zhongshan) 5,000 2010.03.26 5,000 Amount 3 years Not Yes
(2009-028)
Company Guarantee
Shennandian Maximum
2010.7.21
(Dongguan) 12,000 2010.08.22 5,600 Amount 3 years Not Yes
(010-039)
Company Guarantee
Total amount of external Total actually amount
guarantee approved in the 12,000 of external guarantee in 10,600
report period(A1) the report period(A2)
Total actually amount
Total amount of external
of external guarantee at
guarantee approved at the end 17,000 10,600
the end of the report
of the report period(A3)
period(A4)
2 - 1 - 13
深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
Guarantee of the Company for its subsidiaries
Related
Compl
Announce Date of Actual
ete Guarantee
Name of the ment Amount happening amount
Guarant Imple for related
Company disclosure of (Date of of Guarantee type
ee term mentat party (Yes
guaranteed day and guarantee signing guarant
ion or or no)
Announce agreement) ee
not
ment No.
Shennandian Maximum
2009.4.30
(Zhongshan) 10,000 2009.06.04 10,000 Amount 3 years Not Yes
(2009-028)
Company Guarantee
Shennandian Maximum
2011.1.14
(Zhongshan) 20,000 2011.01.19 20,000 Amount 3 years Not Yes
(2011-001)
Company Guarantee
Shennandian Maximum
2010.7.21
(Zhongshan) 10,000 2010.07.30 10,000 Amount 3 years Not Yes
(2010-039)
Company Guarantee
Shennandian Maximum
2010.7.21
(Zhongshan) 10,000 2010.08.19 4,000 Amount 3 years Not Yes
(2010-039)
Company Guarantee
Shennandian Maximum
2011.1.14
(Zhongshan) 6,000 2011.04.08 5,805 Amount 3 years Not Yes
(2011-001)
Company Guarantee
Shennandian Maximum
2011.1.14
(Dongguan) 30,000 2011.01.20 30,000 Amount 3 years Not Yes
(2011-001)
Company Guarantee
Shennandian Maximum
2011.5.11
(Dongguan) 10,000 2009.06.10 10,000 Amount 3 years Not Yes
(2011-030)
Company Guarantee
Shennandian Maximum
2010.11.4
(Dongguan) 8,000 2011.06.20 8,000 Amount 3 years Not Yes
(2010-058)
Company Guarantee
Shennandian Maximum
2010.11.4
(Dongguan) 20,000 2010.12.29 12,000 Amount 3 years Not Yes
(2010-058)
Company Guarantee
Shennandian
Maximum
Environment 2011.1.31
8,000 2009.11.06 3,600 Amount 3 years Not Yes
Protection Co., (2011-006)
Guarantee
Ltd.
Maximum
New Power 2011-1.31 3
10000 2011.06.30 3000 Amount Not Yes
Company (2011-006) years
Guarantee
Shennandian
Maximum
Environment 2011.5.11
2,700 2010.03.30 2,700 Amount 3 years Not Yes
Protection Co., (2011-030)
Guarantee
Ltd.
Total of actual
Total of guarantee for
guarantee for
subsidiaries approved in the 74,000 119,105
subsidiaries in the
Period (B1)
Period (B2)
2 - 1 - 14
深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
Total of actual
Total of guarantee for
guarantee for
subsidiaries approved at 144,700 119,105
subsidiaries at
Period-end (B3)
Period-end (B4)
Total of Company’s guarantee(Namely total of the large two aforementioned)
Total of actual
Total of guarantee approved in
86,000 guarantee in the Period 129,705
the Period (A1+B1)
(A2+B2)
Total of guarantee approved at Total of actual
Period-end 161,700 guarantee at Period-end 129,705
(A3+B3) (A4+B4)
The proportion of the total amount of actually guarantee
78.56%
in the net assets of the Company(that is A4+ B4)
Including:
Amount of guarantee for shareholders, actual controller
0
and its associated parties(C)
The debts guarantee amount provided for the guaranteed
parties whose assets-liability ratio exceed 70% directly or 57,805
indirectly(D)
Proportion of total amount of guarantee in net assets of the
47,156
Company exceed 50%(E)
Total guarantee amount of the abovementioned
104,961
guarantees(C+D+E)
Explanations on possibly bearing joint and several
N/A
liquidating responsibilities for undue guarantees
(IX) Special explanation and independent opinion issued by independent directors on capital occupancy
and external guarantee of related parties of the Company
According to ZJF No. 56 Notice (2003) on Standardizing Capital Current between Listed Company and
Related Parties and External Guarantee of Listed Company, SZJFZ No. 338 Notice (2004) on
Strengthening Capital Occupancy of Listed Company and Out-of-line Guarantee Information Disclosure
as well as ZJF No. 120 Notice (2005) on Standardizing External Guarantee of Listed Company, and with
knowledge and data inquiry of the Company, we issued the following special explanation and opinion for
the current capital occupancy and external guarantee of related parties of the Company as semi-annual of
2011:
1. As at June 30, 2011, the current capital between the Company and its controlling shareholders,
subsidiaries and other related parties all belong to normal non-operating current capital and no related
parties occupy the Company’s capital out of line.
2. As at June 30, 2011, the balance of external guarantee of the Company amounts to RMB
1,297,050,000 (belong to loan guarantee provided by the Company for its controlling subsidiaries and
guarantee provided by controlling subsidiaries for other controlling subsidiaries). The Company and its
controlling subsidiaries have not provided guarantee for its shareholders, other related parties, any
non-legal unit or individual; earnestly implemented its obligation for disclosing information of external
guarantee.
(X) Implementation of commitment issued by shareholders holding above 5% equity (include 5%) of
Company
During the report period, the shareholders holding more than 5% (5% included) shares of the Company
have not made commitment or previous commitment but lasting till the report period which brought
significant influence to the Company’s operation achievement and financial status.
(XI) Reception for investigation, communication and interview
2 - 1 - 15
深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
During the report period, no reception for investigation, communication and interview occurred.
(XII) During the report period, no director, supervisor, senior executive, shareholder, actual controller
and the Company has received investigation from CSRC, administrative punishment and public criticize
from CSRC, punishment from other administrative department, public blame and justice compulsive
measure from stock exchange.
(XIII) Index for the information of the Company
The designated newspapers for information disclosure are China Securities Journal, Securities Times, and
Hong Kong Commercial Daily; designated website is Juchao Information Website
(http://www.cninfo.com.cn).
Name and page of
Date Content
publishing press
China Securities Journal --
Notice on Resolution of 2011 the first B008;
2011-1-14 Extraordinary Shareholders’ General Securities Times --D13;
Meeting Hong Kong Commercial
Daily--A4
Notice of Resignation of Deputy China Securities Journal
Chairman; --B008;
Notice of Resignation of Supervisor; Securities Times --B12;
2011-1-15 Resolution of Extraordinary Meeting of Hong Kong Commercial
5th Session of the Board; Daily--A18;
Resolution of 31st Meeting of 5th Session China Securities Journal --
of Supervisory B008
China Securities Journal
--A28;
2011-1-31 Forecast of Performance for 2010 Securities Times --C4;
Hong Kong Commercial
Daily--A5
China Securities Journal
--A36;
2011-2-28 Notice of Clarification Securities Times --C8;
Hong Kong Commercial
Daily--A5
Securities Times --D24;
Notice of Guarantee Expects to Loans
Hong Kong Commercial
from Zhuhai Commercial Bank to
2011-3-22 Daily--A5;
Shennandian (Zhongshan) Power Co.,
China Securities Journal
Ltd.
--B004
2011-4-15
Resolution of 40th Meeting of 5th Session Securities Times --D46;
of the Board; China Securities Journal
Resolution of 33rd Meeting of 5th Session --D052;
of the Supervisory; Hong Kong Commercial
Notice of Convening the Annual Daily--A28
Shareholders’ General Meeting of 2010;
Notice of the bank credit scale, external
2 - 1 - 16
guarantee, bank loans for entrust of
capital within the system or directly
深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
Quarterly for 2011
Securities Times --D45;
China Securities Journal
Annual Report of 2010 for SHENZHEN
--B501;
NANSHAN POWER CO.,LTD
Hong Kong Commercial
Daily--A26
Securities Times --D26;
China Securities Journal
Forecast of the Performance of 1st
2011-4-15 --B052;
Quarterly for 2011
Hong Kong Commercial
Daily--A28
Securities Times;
Resolution of 41st Meeting of 5th Session
China Securities Journal
of the Board;
--A17;
Resolution of 34th Meeting of 5th Session
Hong Kong Commercial
of the Supervisory
Daily--A5
2011-4-23
Securities Times;
st China Securities Journal
Text of 1 Quarterly Report of 2011;
--A18;
Full-Text of 1st Quarterly Report of 2011;
Hong Kong Commercial
Daily--A5
Resolution of the Extraordinary
Meeting( by communication voting) of 5th
Securities Times;
Session of the Board;
China Securities Journal
2011-4-30 Resolution of the Extraordinary
--A17;
Meeting( by communication voting) of 5th
Hong Kong Commercial
Session of the Supervisory;
Daily--A9
Implementation of the Internal Control
Standardized
Resolution of 39th Meeting of 5th Session
Securities Times --D9;
of the Board;
Hong Kong Commercial
Resolution of 32nd Meeting of 5th Session
2011-5-4 Daily--A12;
of the Supervisory;
China Securities Journal
Notice of Convening the 2nd
--B004
Extraordinary Shareholders’ General
Meeting of 2011
Securities Times --D32;
Resolution of Annual Shareholders’
2011-5-11 Hong Kong Commercial
General Meeting for 2010
Daily--A17;
2 - 1 - 17
深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
China Securities Journal
--B004
Securities Times ;
Election of the Supervisor of Staff Hong Kong Commercial
2011-5-18
Representative Daily--A6;
China Securities Journal
nd
Resolution of 2 Extraordinary
Shareholders’ General Meeting of 2011; Securities Times --D24;
Resolution of 1st Meeting of 6th Session of China Securities Journal
2011-5-26
the Board; --A24;
Resolution of 1st Meeting of 6th Session of Hong Kong Commercial
the Supervisory Daily--A6
Securities Times --D36;
Hong Kong Commercial
Resolution of 42nd Meeting of 5th Session
2011-6-3 Daily-- A5;
of the Board
China Securities Journal
--B005
VI. Financial Report (Un-audited)
The 2011 Semi-annual Financial Report is un-audited (attached).
VII. Documents Available for Reference
(I) Semi-annual Report of 2011 carried with the personnel signature of Legal Representative;
(II) Accounting Statements carried with the signature and seals of the Legal Representative, General
Manager and CFO;
(III) All the originals of the Company’s documents and public notices disclosed in Securities Times,
China Securities Journal and Hong Kong Commercial Daily in the report period;
(IV) Place for inspection: Secretariat of the Board of Director of the Company.
Board of Directors of
Shenzhen Nanshan Power Co., Ltd.
August 9, 2011
2 - 1 - 18
深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
SHENZHEN NANSHAN POWER CO.,LTD
Accounting Statement & Annotations for Semi-annual of 2011
2 - 1 - 19
深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
Consolidated Balance Sheet
Unit: RMB
Liabilities and
Assets 2011-6-30 2010-12-31 2011-6-30 2010-12-31
owner’s equity
Current assets: Current liabilities:
Monetary fund 639,580,595.19 601,386,814.04 Short-term loan 3,287,500,000.00 3,112,400,000.00
Bill receivable - 700,000.00 Bill payable 38,049,000.00 -
Account receivable 935,570,314.10 518,392,276.69 Account payable 243,689,092.48 61,115,438.61
Account paid in Account received in
24,571,262.81 13,529,901.89 23,090,662.53 39,274,341.26
advance advance
Remuneration
Interest receivable - - 31,394,214.61 45,432,950.70
payable
Dividend receivable - - Tax payable -483,528,913.35 -501,193,418.09
Other accounts
23,397,718.50 20,450,149.23 Interest payable 64,122,312.85 59,348,039.27
receivable
Inventory 1,252,289,971.15 1,352,372,212.06 Dividend payable - -
Long-term stock
Other account
investment due - - 291,056,300.23 288,768,647.34
payables
within one year
Long-term liabilities
Other current assets - 4,242,431.37 200,000,000.00 50,000,000.00
due within one year
Other current
- - -
liabilities
Total of current Total of current
2,875,409,861.75 2,511,073,785.28 3,695,372,669.35 3,155,145,999.09
assets liabilities
Non-current
Non-current assets： -
liabilities
Long-term stock Long-term
314,231,776.82 306,208,274.30 36,000,000.00 186,000,000.00
investment borrowing
Investment real Other non-current
5,093,387.77 5,308,769.98 5,350,000.00 5,350,000.00
estate liabilities
Total of non-current
Capital assets 2,205,733,408.78 2,169,226,270.73 41,350,000.00 191,350,000.00
liabilities
Project under
88,100,178.37 196,729,476.64 Total of liabilities 3,736,722,669.35 3,346,495,999.09
construction
Disposal of capital
- - Owners’ equity
assets
Intangible assets 62,743,827.01 64,236,931.51 Share capital 602,762,596.00 602,762,596.00
Long-term
unamortized 160,155.30 273,212.64 Capital reserve 363,629,927.51 363,629,927.51
expenses
Deferred income tax
4,624,405.14 4,624,405.14 Reserve surplus 332,908,397.60 332,908,397.60
assets
Other non-current
21,731,198.78 21,273,223.68 Undistributed profit 351,685,700.04 436,541,567.35
assets
Translation
Total of non-current
2,702,418,337.97 2,767,880,564.62 difference in foreign - -
assets
currency statement
Equity attributable
to owners of the 1,650,986,621.15 1,735,842,488.46
parent company
Minority
190,118,909.22 196,615,862.35
shareholders’ equity
2 - 1 - 20
深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
Total of
1,841,105,530.37 1,932,458,350.81
shareholders' equity
Total of liabilities
Total of assets 5,577,828,199.72 5,278,954,349.90 and shareholders' 5,577,828,199.72 5,278,954,349.90
equity
Balance Sheet of the Parent Company
Unit: RMB
Liabilities and
Assets 2011-6-30 2010-12-31 2011-6-30 2010-12-31
owner’s equity
Current assets: Current liabilities:
Monetary fund 169,579,571.56 269,369,131.18 Short-term loan 2,326,100,000.00 2,218,000,000.00
Bill receivable - - Bill payable - -
Account receivable 545,703,102.53 277,107,630.12 Account payable 67,577,263.66 1,749,561.08
Account paid in Account received in
9,439,330.71 455,623.51 21,934,195.45 14,586,000.00
advance advance
Remuneration
Interest receivable - - 16,462,554.66 26,713,770.75
payable
Dividend receivable 597,875,904.41 597,875,904.41 Tax payable -430,669,385.70 -436,158,042.22
Other accounts
1,057,565,531.44 894,247,309.68 Interest payable 4,053,707.78 3,720,714.47
receivable
Inventory 128,856,808.03 166,594,071.43 Dividend payable - -
Long-term stock
Other account
investment due - - 565,497,714.35 490,528,945.93
payables
within one year
Long-term liabilities
Other current assets 280,000,000.00 393,003,940.43 - -
due within one year
Other current
liabilities
Total of current Total of current
2,789,020,248.68 2,598,653,610.76 2,570,956,050.20 2,319,140,950.01
assets liabilities
Non-current
Non-current assets：
liabilities
Long-term stock
813,714,626.58 796,731,124.06 Long-term loan - -
investment
Investment real Other non-current
- - - -
estate liabilities
Total of non-current
Fixed assets 284,475,368.18 316,444,713.69 - -
liabilities
Construction in
66,090,220.18 56,766,007.77 Total of liabilities 2,570,956,050.20 2,319,140,950.01
process
Disposal of capital
- - Owners’ equity -
assets
Intangible assets 8,776,083.16 9,318,739.90 Share capital 602,762,596.00 602,762,596.00
Long-term
unamortized 120,804.92 171,594.44 Capital reserve 288,769,132.47 288,769,132.47
expenses
Deferred income tax
- - Reserve surplus 332,908,397.60 332,908,397.60
assets
Other non-current
- Undistributed profit 166,801,175.43 234,504,714.54
assets
Total of non-current Converted difference
1,173,177,103.02 1,179,432,179.86 - -
assets in Foreign Currency
2 - 1 - 21
深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
Statements
Total of shareholders’
1,391,241,301.50 1,458,944,840.61
equity
Total of liabilities
Total assets 3,962,197,351.70 3,778,085,790.62 and shareholders’ 3,962,197,351.70 3,778,085,790.62
equity
Consolidated Profit Statement
Unit: RMB
Items Jan.-Jun. of 2011 Jan.-Jun. of 2010
I. Operation income 1,143,413,610.78 702,859,674.61
Less: operation cost 1,635,583,031.68 1,003,249,405.69
Operation tax and surcharge 3,850,355.62 2,971,470.22
Sales expense 396,202.63 464,946.47
Management expense 50,599,499.76 47,023,275.69
Accounting expense 89,911,857.60 59,239,993.66
Loss of assets impairment - -
Plus: gain of fair value change - -
Investment gain (loss) -39,857,497.48 -32,231,888.28
Among: gain (loss) of investment into
affiliated and joint enterprises -39,857,497.48 -32,231,888.28
II. Operation profit (loss) -676,784,833.99 -442,321,305.40
Plus: Non-operation income 589,314,683.18 171,419,645.98
Less: Non-operation expense 297,324.48 31,860.00
Among: Loss from disposal of
non-current assets 162,698.07 1,840.00
III. Total of profit -87,767,475.29 -270,933,519.42
Less: income tax expense 3,585,345.15 687,530.22
IV. Net profit -91,352,820.44 -271,621,049.64
Net profit attributable to shareholders of
parent company -84,855,867.31 -255,073,535.78
Minority shareholders’ equity -6,496,953.13 -16,547,513.86
V. Earnings per share - -
(I) Basic earnings per share -0.14 -0.42
(II) Diluted earnings per share Not applicable Not applicable
VI. Other consolidated incomes - -
VII. Total of consolidated incomes -91,352,820.44 -271,621,049.64
Total of consolidated incomes attributable
to shareholders of the parent company -84,855,867.31 -255,073,535.78
2 - 1 - 22
深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
Total of consolidated incomes attributable
to minority shareholders -6,496,953.13 -16,547,513.86
Profit Statement of Parent Company
Unit: RMB
Items Jan. to Jun. of 2011 Jan. to Jun. of 2010
I. Operation income 442,608,095.42 167,055,044.81
Less: operation cost 694,282,683.32 294,907,340.61
Operation tax and surcharge 1,772,393.29 1,686,853.10
Sales expense - -
Management expense 19,283,461.96 7,828,022.18
Accounting expense 37,688,810.51 18,046,704.28
Loss of assets impairment - -
Plus: gain of fair value change - -
Investment gain (loss) -39,857,497.48 -32,231,888.28
Among: gain (loss) of investment into
affiliated and joint enterprises -39,857,497.48 -32,231,888.28
III. Operation profit (loss) -350,276,751.14 -187,645,763.64
Plus: Non-operation income 282,577,058.44 -
Less: Non-operation expense 3,846.41 -
Among: Loss from disposal of
non-current assets - -
III. Total of profit -67,703,539.11 -187,645,763.64
Less: Income tax expense - -
IV. Net profit -67,703,539.11 -187,645,763.64
V. Earnings per share
(I) Basic earnings per share Not applicable Not applicable
(II) Diluted earnings per share Not applicable Not applicable
VI. Other consolidated income - -
VII. Total of consolidated income -67,703,539.11 -187,645,763.64
2 - 1 - 23
深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
Consolidated Cash Flow Statement
Unit: RMB
Items Jan. to Jun. of 2011 Jan. to Jun. of 2010
I. Net cash flow from operation activities
Cash received from sales of products and supply of labor 1,418,009,918.58 954,715,452.71
Tax expense returns received - -
Cash received and related to other operation activities 75,542,660.32 35,519,595.88
Subtotal of cash inflows from operation activities 1,493,552,578.90 990,235,048.59
Cash paid for purchase of goods and acceptance of labor 1,321,170,701.32 909,385,409.09
Cash paid to or for staff 56,866,969.06 47,196,564.92
All tax paid 44,300,719.65 57,194,367.60
Cash paid and related to other operation activities 32,725,222.12 43,800,949.21
Subtotal of cash outflows from operation activities 1,455,063,612.15 1,057,577,290.82
Net cash flow from operation activities 38,488,966.75 -67,342,242.23
II. Cash flow from investment activities - -
Cash received from divestment - -
Cash received from investment returns - -
Net cash drawback from disposal of capital assets,
4,344,000.00 11,593,462.50
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries or other
- -
business units
Other investment-related cash received - -
Sub-total of cash inflows of investment activities 4,344,000.00 11,593,462.50
Cash paid for construction of fixed assets, intangible assets
22,843,360.85 39,524,878.57
and other long-term assets
Cash paid for investment 47,881,000.00 60,457,857.00
Net cash received from payment of subsidiaries and other
- -
operational units
Other investment-related cash payment - -
Sub-total of cash outflows from investment activities 70,724,360.85 99,982,735.57
Net cash flow from investment activities -66,380,360.85 -88,389,273.07
III. Cash flow from financing activities - -
Cash received from investment take-up - -
Cash received from obtaining borrowings 2,379,100,000.00 2,296,000,000.00
Cash received from other financing-related activities - -
Subtotal of cash inflow from financing activities 2,379,100,000.00 2,296,000,000.00
Cash paid for debts 2,204,000,000.00 2,043,120,000.00
Cash paid for dividend or profit distribution, or interest 109,011,750.54 71,236,958.66
Other funding-related cash payment - -
Subtotal of cash outflows from financing activities 2,313,011,750.54 2,114,356,958.66
Net cash flow from financing activities 66,088,249.46 181,643,041.34
IV. Influence of exchange rate fluctuation on cash and cash -3,074.21 -2,624.45
2 - 1 - 24
深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
equivalents
V. Net increase of cash and cash equivalents 38,193,781.15 25,908,901.59
Plus: Balance of cash and cash equivalents at
591,386,814.04 356,362,100.63
Period-beginning
VI. Balance of cash and cash equivalents at Period-end 629,580,595.19 382,271,002.22
Cash Flow Statement of the Parent Company
Unit: RMB
Items Jan. to Jun. of 2011 Jan. to Jun. of 2010
I. Cash flow from operation activities
Cash received from sales of products and supply of labor 729,133,218.02 506,963,574.90
Tax expense returns received - -
Cash received and related to other operation activities 299,082,095.79 152,163,679.44
Subtotal of cash inflows from operation activities 1,028,215,313.81 659,127,254.34
Cash paid for purchase of goods and acceptance of labor 696,657,561.65 450,688,125.74
Cash paid to or for staff 32,276,567.86 22,434,981.27
All tax paid 8,350,015.33 5,932,097.07
Cash paid and related to other operation activities 352,099,113.80 377,847,817.06
Subtotal of cash outflows from operation activities 1,089,383,258.64 856,903,021.14
Net cash flow from operation activities -61,167,944.83 -197,775,766.80
II. Cash flow from investment activities -
Cash received from divestment - -
Cash received from investment returns - -
Net cash drawback from disposal of capital assets,
- -
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries or other
- -
business units
Cash received from relevant activities - -
Sub-total of cash inflows of investment activities - -
Cash paid for construction of fixed assets, intangible assets
18,557,420.52 19,267,886.09
and other long-term assets
Cash paid for investment 56,841,000.00 60,457,857.00
Net cash received from payment of subsidiaries and other
- -
operational units
Other investment-related cash payment - -
Sub-total of cash outflows from investment activities 75,398,420.52 79,725,743.09
Net cash flow from investment activities -75,398,420.52 -79,725,743.09
III. Cash flow from financing activities
Cash received from investment take-up - -
Cash received from obtaining borrowings 1,532,100,000.00 1,430,000,000.00
Cash received from other financing-related activities - -
Subtotal of cash inflows from financing activities 1,532,100,000.00 1,430,000,000.00
2 - 1 - 25
深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
Cash paid for debts 1,424,000,000.00 989,000,000.00
Cash paid for dividend or profit distribution, or interest 71,322,473.33 43,032,885.87
Other funding-related cash payment - -
Subtotal of cash outflows from financing activities 1,495,322,473.33 1,032,032,885.87
Net cash flow from financing activities 36,777,526.67 397,967,114.13
IV. Influence of exchange rate fluctuation on cash and cash
-720.94 -1,893.84
equivalents
V. Net increase of cash and cash equivalents -99,789,559.62 120,463,710.40
Plus: Balance of cash and cash equivalents at
269,369,131.18 35,564,935.05
Period-beginning
VI. Balance of cash and cash equivalents at Period-end 169,579,571.56 156,028,645.45
2 - 1 - 26
深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
Consolidated Statement of Changes in Owners’ Equity
Unit: RMB
Amount in Jan.-Jun.2011 Amount of 2010
Items Shareholders’ equity attributable to the parent company Shareholders’ equity attributable to the parent company
Minor Total of Minor Total of
Capital Surplus Retained shareholders shareholders’ Share Capital Surplus Retained shareholders’ shareholders’
Share capital reserves reserves profit ’ equity equity capital reserves reserves profit equity equity
I. Balance at the end of 602,762,596 363,629,927. 332,908,397 436,541,567. 196,615,862 1,932,458,35 602,762,59 363,629,92 332,908,39 547,986,75 208,604,106.2 2,055,891,782
last year .00 51 .60 35 .35 0.81 6.00 7.51 7.60 5.29 4 .64
Plus: Change of 3,193,490.2
- - - - - - - - - -3,193,490.26 -
accounting policy 6
Correction of previous
- - - - - - - - - - - -
errors
II. Balance at the
602,762,596 363,629,927. 332,908,397 436,541,567. 196,615,862 1,932,458,35 602,762,59 363,629,92 332,908,39 551,180,24 205,410,615.9 2,055,891,782
beginning of current
.00 51 .60 35 .35 0.81 6.00 7.51 7.60 5.55 8 .64
year
III. Increase/decrease -84,855,867. -6,496,953.1 -91,352,820. -114,638,6 -123,433,431.
- - - - - - -8,794,753.63
changed in Year 31 3 44 78.20 83
-84,855,867. -6,496,953.1 -91,352,820. -114,638,6 -123,433,431.
- - - - - - -8,794,753.63
(I) Net profit 31 3 44 78.20 83
(II) Other consolidated
- - - - - - - - - - - -
income
Subtotal of the above -84,855,867. -6,496,953.1 -91,352,820. -114,638,6 -123,433,431.
- - - - - - -8,794,753.63
(I) and (II) 31 3 44 78.20 83
(III) Capital invested or
- - - - - - - - - - - -
reduced by shareholders
1. Capital invested by
- - - - - - - - - - - -
shareholders
2. Share payment
accounted into - - - - - - - - - - - -
shareholders’ equity
3. Others - - - - - - - - - - - -
- - - - - - - - - - - -
(IV) Profit distribution
1.Withdrawl of surplus
- - - - - - - - - - - -
reserves
2. Dividend distribution
- - - - - - - - - - - -
to shareholders
3. Others - - - - - - - - - - - -
(V) Internal settlement
and transfer of - - - - - - - - - - - -
shareholders’ equity
2 - 1 - 27
深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
1. Capital reserves
transferred to share - - - - - - - - - - - -
capital
2. Surplus reserves
transferred to share - - - - - - - - - - - -
capital
IV. Balance of end of 602,762,596 363,629,927. 332,908,397 351,685,700. 190,118,909 1,841,105,53 602,762,59 363,629,92 332,908,39 436,541,56 196,615,862.3 1,932,458,350
this year .00 51 .60 04 .22 0.37 6.00 7.51 7.60 7.35 5 .81
Statement of Changes in Owners’ Equity (Parent Company)
Unit: RMB
Amount in Jan.-Jun.2011 Amount of 2010
Total of Total of
Capital shareholders’ Surplus shareholders’
Items Share capital reserves Surplus reserves Retained profit equity Share capital Capital reserves reserves Retained profit equity
I. Balance at the end of 602,762,596.0 288,769,132.4 602,762,596.0 332,908,397.6 1,551,628,284.7
332,908,397.60 234,504,714.54 1,458,944,840.61 288,769,132.47 327,188,158.71
last year 0 7 0 0 8
Plus: Change of
- - - - - - - - - -
accounting policy
Correction of previous
- - - - - - - - - -
errors
II. Balance at the 602,762,596.0 288,769,132.4 602,762,596.0 332,908,397.6 1,551,628,284.7
332,908,397.60 234,504,714.54 1,458,944,840.61 288,769,132.47 327,188,158.71
beginning of current year 0 7 0 0 8
III. Increase/decrease
- - - -67,703,539.11 -67,703,539.11 - - - -92,683,444.17 -92,683,444.17
changed in Year
- - - -67,703,539.11 -67,703,539.11 - - - -92,683,444.17 -92,683,444.17
(I) Net profit
(II) Other consolidated
- - - - - - - - - -
income
Subtotal of the above (I)
- - - -67,703,539.11 -67,703,539.11 - - - -92,683,444.17 -92,683,444.17
and (II)
(III) Capital invested or
- - - - - - - - - -
reduced by shareholders
1. Capital invested by
- - - - - - - - - -
shareholders
2. Share payment
accounted into - - - - - - - - - -
shareholders’ equity
- - - - - - - - - -
3. Others
- - - - - - - - - -
(IV) Profit distribution
2 - 1 - 28
深圳南山热电股份有限公司 第六届董事会第三次会议文件之二
1.Withdrawl of surplus
- - - - - - - - - -
reserves
2. Dividend distribution to
- - - - - - - - - -
shareholders
- - - - - - - - - -
3. Others
(V) Internal settlement and
transfer of shareholders’ - - - - - - - - - -
equity
1. Capital reserves
- - - - - - - - - -
transferred to share capital
2. Surplus reserves
- - - - - - - - - -
transferred to share capital
IV. Balance of end of this 602,762,596.0 288,769,132.4 602,762,596.0 332,908,397.6 1,458,944,840.6
332,908,397.60 166,801,175.43 1,391,241,301.50 288,769,132.47 234,504,714.54
year 0 7 0 0 1
2 - 1 - 29
II. Annotations of the financial statements
(I.) Company Profile
Shenzhen Nanshan Power Co., Ltd (hereinafter called as “Company”) was reorganized to be a joint-stock
enterprise from a foreign investment enterprise in 1993, upon the approval of General Office of Shenzhen
Municipal Government with Document Shen Fu Ban Fu No.897 in 1993. When transformed, the Company’s
total capital was 103,000,000 Yuan with paper value per share 1 Yuan.
After approved by Document Shen Zhu Ban Fu No. 179 in 1993 issued by Shenzhen Securities Regulatory
Office, the Company offered 40,000,000 RMB common shares and 37,000,000 foreign exchange shares listed
in China respectively to domestic and overseas investors, which were listed in Shenzhen Securities Exchange
respectively on Jul 1, 1994 and Nov 28, 1994. After the offering, the Company’s total capital increased to
180,000,000 Yuan. After several later dividnend distributions and stock allotments, the Company’s capital
increased to 602,762,596 Yuan on June 30, 2011.
The Company together with its subsidiaries (hereafter referred as the Company) is mainly engaged in
businesses as production of power and heat，plant constructional, oil trader, property developmental,
construction technology consultation and sludge drying.
No controlling shareholder and actual controller exist in the Company, Shenzhen Energy Corporation
(hereafter referred as the Energy Group) is the first largest shareholder of the Company.
(II)PreparationbasisofFinancialStatements
1．PreparationbasisofFinancialStatements
The Company executes the Accounting Standard for Business Enterprises issued by MOF on February 15,
2006. Moreover, the Company disclosed relevant financial information complied with the Preparation Rules
on Information Revelation for the Company with Securities Public Offering No. 15 – General Rules of
Financial Report (Revised 2010)
The Company takes the accrual system as the bookkeeping basis of accounting auditory. In
addition to some financial instruments of fair value measurement, the Financial Statements
are measured on the basis of historic cost. As for the assets impairment, available is the
corresponding impairment provision accrued in line with the relevant rules.
2．Declarationofobediencetocorporateaccountingprinciples
The Financial Statements are up to requirements of corporate accounting principles, and also a true and
thorough reflection to the Company together with its financial information as consolidated financial position
on 30th June 2011, and the Company together with its consolidated operation results, and consolidated cash
flow in the first half of 2011.
3．Accountingperiod
The Group’s accounting year is Gregorian calendar year, namely from 1st January to 31st December.
4．Bookkeepingstandardcurrency
RMB is the currency in the Group’s main business economic environment and the bookkeeping standard one,
which is adopted in preparation of the financial statements.
5．Accountingmethodsforconsolidationofenterprisesunderthesamecontrolorotherwise
The combination was divided into enterprise consolidation under the same control and the one not under the
same control
5.1 Consolidation of enterprises under the same control
The enterprises involved in the consolidation are all under the final control of one party or parties and the
control is not temporary. That is the corporate consolidation under the common control.
2 - 1 - 30
The difference between the book value of the net assets and the consideration value with total book value of
stock is used for reserve adjustment while it is used for retained earnings adjustment as not sufficient for eat
up part of reserve.
Directly related expenses for corporate combination are reckoned into the current loss/gain
5.2 Consolidation of enterprises not under the same control and goodwill
The enterprises involved in the consolidation are ones not under the same final control of the common party
or parties before and after the consolidation. That is the corporate consolidation under the different control.
The consolidation cost is assets paid for and the liabilities responsible for the obtaining of the control right
from the purchased party, together with the fair value of the equity instruments offered. For merger under
different control done through multiple trades by step, the merger cost is the sum of consideration paid at
purchased day and the fair value of equity of bought party before purchasing on purchased date. For equity of
bought party held before purchasing, re-measured by fair value on purchased date, and the difference of fair
value and its book value should reckoned into current investment income; For equity of bought party held
before purchasing but with other consolidation income involved, the oher consolidation income related to
them should transferred into current investment income at purchased date.
Measured on fair value on the purchase day are the recognizable assets, liabilities or the contingent liabilities
obtained in the consolidation and recognized as qualified. Measured by fair value is consolidation cost and
recognized assets of the purchaser. The plus difference between fair values of the consolidation cost and the
recognized net assets is recognized as business fame in form of an item of assets and calculated initially by
cost while as for the minus one, firstly the measurements of consolidated cost and fair value of the
recognizable assets, liabilities or contingent liabilities was checked, and the consolidated cost which was
checked and less than the fair value of the net assets obtained from the purchased party is reckoned into
current loss/gain.
Goodwill formed by enterprise consolidation will list independently in consolidation financial statement and
measure by the cost after accumulated impairment provision dectuction. Impairment test on goodwill should
verify at end of the every year at least.
The test is taken in accordance with the relevant assets group or portfolio of groups. Namely, the book value
of the fame is diluted reasonably into the relevant group from the purchase day; the assets loss is recognized if
the sum receivable of the assets group or the portfolio of the diluted business fame is lower than the book
value. The impairment loss abates the book value of the business fame diluted into the group or the portfolio
firstly and then abates book value of other assets proportionally according to the proportion of the book value
of other assets.
The recoverable sum is the higher one between the net of assets fair value less disposal expenses and the
current value of the future cash flow. The assets fair value is determined by the sales agreement price in the
fair trade. As for the assets not in the sales agreement but in the active market, their fair value is determined
by the offering price of the purchaser; as for the assets neither in the agreement nor in the active market, their
fair value is based on the best information receivable. The disposal expenses are composed of the law expense,
relevant tax, cartage, and the actual direct expenses enable the assets to be available. The assets current value
of future cash flow is determined according to the future expected cash flow in the continual use and the final
disposal and the appropriate discount rate.
Goodwill impairment will be included in current loss and gains and not be written back in subsequent fiscal
periods as soon as it was recognized.
6． Preparationmethodsforcorporateconsolidatedstatements
2 - 1 - 31
The scope is determined on the basis of control. The control is right to decide another enterprise’s accounting
and operation policies and obtain the interest according to the latter enterprise’s operation.
For subsidiaries being disposed, their business result and cash flow before the disposal day(losing power of
control day) have been appropriately demonstrated in the consolidated income statement and cash flow
statement.
Subsidiaries added as merger of enterprises under different control, their operation results and cash flow from
the beginning of purchasing day( gaining pwer of control day) have been appropriately demonstrated in the
consolidated income statement and consolidated cash flow statement. And the comparison amount and
period-begin amount in the consolidated financial statement shall not be adjusted.
Subsidiaries added as merger of enterprises under common control, their operation results and cash flow from
the beginning of current term to the merger day have been appropriately demonstrated in the consolidated
profit statement and consolidated cash flow statement.
The subsidiaries’ main accounting policies and period are determined by the Company’s uniform ones.
All substantive accounts o transactions between the Company and its subsidiaries or among the subsidiaries
are balanced out in consolidation.
The amount not attributable to the parent company is the minority shareholders’ equity and is listed in the
consolidated balance sheet as minority shareholders’ equity. The amount attributable to minority shareholders’
equity of current net loss/gains of subsidiaries is listed in the net profit item of consolidated profit as minority
shareholders’ equity.
When the share of losses attributable to the minor shareholders has exceeded their shares in the owners’ equity
at the beginning of term attributable to minority shareholders in the subsidiary, the balance shall offset the
minor shareholders’ equity.
Concerning the purchasing of minority shareholders’ equity from subsidiary or the transaction of partial
equity investment disposal without control rights loss in the subsidiary, calculated them as equity transaction.
And reflect relevant equity changes in the subsidiary for adjusting the owners’ equity attributablt to parent
company and book value of minority shareholders’ equity. Difference between the adjusted amount on
minority equity and fair value of consideration received/paid will adjust as capital reserve, adjuste as income
retained while capital reserve fail for off-setting.
For control rights loss in original subsidiary for partial equity investmtne disposal or other reasons, the
remained equity should re-measured based on the fair value at date of control losses. The difference between
the net assets of original subsidiary share by proportion held that sustainable calculated since purchased date
and sum of consideration obtained by equity disposal and fair value of remain equity, recokoned into the
current investment income of control rights loss. The other consolidation income related to original
subsidairy’s equity investment will transfer to current investment income while control rights loss.
7.Determinationcriteriaofcashequivalentincashflowstatements
Cash is the corporate storage cash and deposits available for payment anytime. Cash equivalents are investment of
short‐term,strongmobilityandeasytransfertoknownsumcash,andslightriskofvaluevibration.
8. Foreigncurrencyexchange
The current rate of the trading day is adopted in the initial recognition of the foreign exchange.
Foreign monetary items are converted at the current rate on the assets/liabilities statements’ day, for the
exchange difference due to inconsistency of the current exchange rate on that day and in the initial recognition
or on the last balance sheet day, in addition to: (1) the foreign specific borrowing difference up to the
2 - 1 - 32
capitalization conditions reckoned into the relevant assets cost via capitalization; (2) difference of the hedging
instruments for avoidance of the foreign exchange risk handled by the hedging accounting methods; (3)
difference of the non-monetary items and from the changes of the book value of financial assets in addition to
the diluted cost all reckoned into the current loss/gain.
Non-monetary items measured in historical cost are still measured by sum on the bookkeeping standard
currency at the current exchange rate. The items measured by the fair value are converted at the current rate
on the fair value recognition day. The difference is dealt as the fair value change and reckoned into the current
loss/gain or recognized as the other consolidated income and reckoned into the reserve.
9.Financialinstruments
Being party of the Contractof Financial Instruments, the Company recognized a financial assets or financial
liabilities.At initial recognition, financial assets and financial liabilities are measured by fair value.
Concerning the fiancnial assets and financial liabilities that measured by fair value but with variation
reckoned into current gains.loss, relevant transaction expense counted into gains/loss directly; for other
category fiancnial assets and financial liabilities, relevant transaction expense counted into initial
recognization amount.
9.1 Recognition of fair value
The fair value is sum for assets exchange or debts payment between the trading parties. As for instrument in
active market, the fair value is adopted according to the quotation in the active market. As for the instruments
not in the active market, the fair value is recognized by the estimation technology. The technology is
composed of the price in the latest fair trade, fair value according to the fundamentally same instruments, cash
flow discount and stock price-setting model.
9.2 Actual interest rate
Actual interest rate is the method for calculation of amortized cost and interest income/expenditure of every
period by actual interest rate of financial assets or financial liabilities(a set of financial assets or financial
liabilities included). Discount the future cash flow of financial assets/liabilities that in predicted continuance
or applicable shorter terms to the rate used in current book value of financial assets/liabilities consider as the
actual interest rate.
While calculating actual interest rate, the Company will predict the future cash flow ( without futre credit loss
consideration) on base of all contrat clause of financial assets/liabilities consideration, take the vary expenses,
belong to actual interest rate that paid/received between contract parties, transaction expenses& discount and
premium as well as into consideration.
9.3 Classification, reorganization and measurement of financial assts
On initial confirmation, the financial assets are divided into: financial assets measured by fair value and of
which the changes are recognized to be current profit/loss, receivables, tradable financial assets and
held-to-maturity investments. The financial assets are bought or sold by the regular way, and recognized or
terminated to be recognized according to the trading day accounting.
The assets are loans and account receivable.
Loan and the account receivable
The assets are the un-derivative financial assets without quotation in the active market, steady or recognizable
recoverable sum. The assets are composed of bill receivable, account receivable, receivable equity and other
account receivable.
The actual interest rate and the diluted cost are adopted in the follow-up measurement of loan and account
receivable. Gain or loss is reckoned into the current gain/loss upon the recognition termination, impairment or
dilution.
2 - 1 - 33
9.4Impairmentoffinancialassets
Except for financial assets accounted at fair value and variation accounted into current gain/loss account, the
Company undertake inspection on the book value of other financial assets at each balance sheet day, whenever
practical evidence showing that impairment occurred with them, impairment provisions are provided. The
practical evidence of impairment for financial assets refers to the items that has influence on the predicted
future cash flow of financial assts, and the influences could measured reliable by the enterprise which were
actually occurred after the initial recognition of financial assets.
Objective evidence for impairment of financial assets is composed of the following events observable:
(1) Sever financial difficulties of offering part or debtor;
(2) Breach of the contract, as in payment of interest or principal or payment overdue;
(3)Recessionmakingfordebtorsbycreditorsinconsiderationofeconomicorlegalfactors;
(4) Probable bankruptcy or other financial restructuring of debtors;
(5)Incapabilityoftradingthefinancialassetsinthemarketastheofferingparty’ssubstantivefinancialdifficulties;
(6) Incapability of recognize whether cash flow of certain assets decreases or not but the discovery after the
general evaluation that as can be measured, the expected future cash flow surely decreases since the initial
recognition, including:
--Gradual worsening of the debtor’s solvency for the group financial assets
--Incidences of the probable chance to cause the group financial assets unable to be paid in the debtors’
country or district;
(7)Materialunfavorablechangesinthedebtor’soperationenvironmentoftechnology,market,economyandlaw;
(8)Severeorpermanentfall‐downinfairvalueofequityinstrumentinvestment;
(9) Other objective evidence to prove the impairment of the financial assets.
- Loss of impairment of financial assets measured by diluted cost
Loss of impairment of financial assets measured by diluted cost is written down into the present value of
future expected cash flow(un-occurred future credit losses excluded) that converted by original actual interest
rate of the financial assets . The written-down sum is recognized as the impairment loss and reckoned into the
current loss/gain. After the recognition of impairment of the above assets, if there is practical evidence to
show that the asset has recovered, which is related to events following up the loss, the previous impairment
loss is taken back. The book value of the assets transferred back into the impairment loss is not above the
diluted cost supposedly un-accrued on the transfer day.
The Company performs impairment test separately on individual financial assets with major amounts; for
financial assets without major amounts, the Company performs impairment test separately or inclusively in a
group of financial assets with similar characteristics of risks. Those financial assets (individual financial assets
with or without major amounts) tested separately with no impairment found shall be tested again along with
the group of financial assets with similar risk characteristics. Financial assets confirmed for impairment
individually shall not be tested along with the group of financial assets with similar risk characteristics.
9.5 transfer of financial assets
As for the financial assets up to the following conditions, the recognition termination is available: (1)
Termination of the contract right to take the cash flow of the financial assets;(2) transferred to the
transferring-in part nearly all risk and compensation;(3) all risk and compensation neither transferred nor
retained, and with the give-up of the control over the financial assets.
As for financial assets of almost all risk and compensation neither transferred nor retained, and without the
give-up of the control over the financial assets, it was recognized according to the extension of the continual
entry into the transferred financial assets and relevant liabilities are correspondingly recognized. The
continual entry into the transferred financial assets is risk level which the enterprise faces up to due to the
assets changes.
2 - 1 - 34
As for the whole transfer of the financial assets up to the recognition termination conditions, the book value of
the transferred assets, together with the difference between the consideration value and the accumulative total
of the fair value change of the other consolidated income, is reckoned into the current gain/loss.
As for the partial transfer of the financial assets up to the recognition termination conditions, the book value
of the transferred assets is diluted on the relative fair value between the terminated part and the un-terminated
part; and reckoned into the current loss/gain is the difference between the sum of the consideration value and
the accumulative sum of the valuation change ought to be diluted into the recognition termination part but into
the other consolidated income, and the above diluted book value, is reckoned into the current loss/gain.
9.6 Categorizing, recognition and measuring of financial liabilities
Finanical liabilities or equity instrument is recognized by the substance of financial instrument listed in
contract and the definition of financial liabilities and equity instrument for the financial instruments issued by
the Company.
At initial recognition, financial liabilities are classified into financial liabilities measured by fair value with
changes counted into current gains/losses and other financial liabilities.
Financial liabilities of the Company refer to other financial liabilities.
Other financial liabilities
The follow-up measurement by the cost is taken on the derivative financial liabilities which is hooked with
the stock instrument without the quotation in the active market and the reliable measurement, and settled by
handing over the stock instrument. The follow-up measurement at the actuarial rate and by the diluted cost is
taken on the other financial liabilities.
9.7 Termination recognition of financial liabilities
Only is released the whole or part of the current duties, the termination of the liabilities or part of it is
available. The Group (the creditor) signed the agreement with the debtor: the existing liabilities are replaced
by the bearing of the new liabilities; and the contract terms are fundamentally different of the new liabilities
and the existing ones; the termination of the recognition of the existing ones is available; and the recognition
of new ones is available.
As for the whole or partial termination of the recognition of the liabilities, the difference between the book
value of the part of recognition termination and the consideration value paid (including the non-cash assets
transferred out or the liabilities newly beard) is reckoned into the current loss/gain.
9.8 Balance-out between the financial assets and liabilities
As the Company has the legal right to balance out the financial liabilities by the net or liquidation of the
financial assets, the balance-out sum between the financial assets and liabilities is listed in the balance sheet.
In addition, the financial assets and liabilities are listed in the balance sheet without being balanced out.
9.9 Stock instrument
The stock instrument is the contract to prove the holding of the surplus stock of the assets with the deduction
of all liabilities in the Company. When issuing other stock instruments, the consideration value received in
offering with the deduction of trading expense is used for increasing the shareholders’ equity.
The Company’s all distribution (shares dividend excluded) to the holders of the stock instrument will decrease
the shareholders’ equity. The Company does not recognize the fair value change sum of the stock instrument.
10.Accountreceivable
10.1 Accounts receivable with significant amount and single provision for bad debt
2 - 1 - 35
Determination basis and amount The single account receivable above RMB 2 million is
standard of items with single recognized as single substantive account receivable
significant amount
The Company takes the independent impairment test on the
single substantive account. As for the account receivable
Accrual methods of bad account without the impairment in the test, it is included in the
preparation for single substantive account receivable portfolio of the similar credit risk
accountreceivable characters for the impairment test. As for the account
receivable with the recognition of impairment loss, it is not
included in the account receivable portfolio of the similar
credit risk characters for the impairment test
10.2 providing of bad debt provisions on account receivable by combination
Recognition basis of combination
account receivable with individual The Company believed that the account receivable with individual
minor amount and with individual major minor amount and with individual major amount but without
amount but without impairment found impairment found after separately testing has a lower credit risk. The
after separately testing Company withdrwal no bad debt provision unless evidence of major
credit risk on certain account receivable been found.
10.3 account receivable with individual minor amount but withdrwal bed bedt provision singlely
If there is evidence proving that the credit risk of certain
Reasons for bad bedt provision singlely account receivable is big, the bad debt provision for account
receivable should be accrued individually.
Methods for bad debt provision Specific Identification Method
11. Inventory
11.1Categoriesofinventory
The Company’s inventory mainly consists of fuels, raw materials and developing products in process. The
inventory is measured initially by cost. The cost for developing products consists of the land transfer capital,
supporting infrastructure expenditure, construction installation projects expenditure, the loan expense before
the completion of the development projects and the other relevant expenses in the development. Other
inventory cost consists of the purchase cost, process cost, and other expenditure enables the inventory to
arrive at the present place and the sate to occur.
11.2Valuationmethodofinventorydelivered
The actual cost of the property development products delivered is recognized by the individual valuation
method. The actual cost of other inventories delivered is recognized by the weighted average method.
11.3Recognitionbasisofnetrealizablevalueofinventory,andaccrualmethodsofpreparationforinventorydepreciation
On the balance sheet day, the inventory is measured by the lower one between the cost and the net realizable
value. As the net realizable value is lower than the cost, the inventory depreciation provision is accrued. The
net realizable value is balance of the estimated sale price less the estimated forthcoming cost upon the
completion, the estimated sale expense, and the relevant tax in the daily activities. Upon the recognition of net
realizable value of the inventory, the concrete evidence is based on and the purpose of holding the inventory
and the influence of events after the balance sheet day are considered.
2 - 1 - 36
As for the inventory of large sum and lower price, the inventory depreciation provision is accrued by the
inventory categories. As for the inventory related to the product series produced and sold in the same district,
of the same or similar final use or purpose and impossible to be separated from the other items, the provision
is consolidated and accrued. The provision for other inventory is accrued by the difference between the cost
and net realizable value.
Upon the accrual of the inventory depreciation provision, if the previous influence factors on the inventory
deduction disappeared, which resulted in the net realizable value being higher than its book value; the accrual
is transferred back within the previous accrual of the provision and reckoned into the current gain/loss.
11.4Inventorysystem
The inventory system is perpetual inventory system.
12.Long‐termequityinvestment
12.1 Recognition of investment cost
For the long-term equity investment formed by corporate merger, if it is the long-term equity investment
obtained from the corporate merger under the same control, the share of book value of owner's equity on the
merger date shall be taken as the investment cost. The merger cost of long-term equity investment obtained
through the corporate merger under different control shall be taken as the investment cost of long-term equity
investment. Concerning the corporate merger under different control with many transactions, the long-term
equity investment cost refers to the total amount of book value of equity investment on purchasee held before
the purchased day and newly added investment cost in purchased day. The other equity investment besides the
long-term equity investment formed by corporate merger shall conduct initial measurement according to its
cost.
12.2Follow‐upmeasurementandgain/lossrecognition
12.2.1. Long-term equity investment checked by the cost
As for the long-term equity investment without the common control over or significant influence on the
invested units, the quotation in the active market and a reliable measurement of the fair value, it is measured
by the cost. In addition, long-term equity investment to subsidiary of the Company adopted the cost method
for calculation in financial statement. Subsidiary refers to the invested units that control by the Company.
Upon the cost check, the investment is valuated on the initial cost. In addition to the actual prices or the
announced but yet undistributed cash dividend or profit in consideration valuation, the current investment
return is recognized by the announced cash dividend or profit by the invested units.
12.2.2. Long-term equity investment checked by the equity
Investment to associated enterprise and joint ventures by the Company adopted equity method for calculation.
Associated enterprise refers to the invested units that the Company has significant influence on it while joint
venture refers to the invested units that controlled by the Company and other investors together.
When equity basis is adopted, if the initial cost of the long-term equity investment is greater than the share of
fair value of the receiver’s recognizable net asset, the initial investment cost of the long-term equity
investment will not be adjusted; if the initial cost of the long-term equity investment is less than the share of
fair value of the receiver’s recognizable net asset, the balance shall be counted into current income account,
and the cost of long-term equity investment shall be adjusted.
When equity basis is adopted, investment gain/loss of the current term is the share of net gains or losses of the
investment receiver of the current year. Recognition of the share of net gains or losses of the investment
receiver shall be on the basis of fair value of recognizable asset of the receiver when the investment was made,
and recognized after adjustment on the net profit of the receiver in accordance with the Company’s accounting
2 - 1 - 37
policies and accounting period. For the gain/loss due to unrealised internal trade between the Company and
co-operations, the share of the Company in this gain/loss shall be neutralized, and investment gains shall be
recognized upon them. But the losses from unrealised trade between the Company and investment receivers
which are regarded as losses from asset transferring shall not be neutralized. Change of equities of the
investment receiver other than net gains or losses shall be counted into shareholders’ equity, and the book
value of long-term equity investment shall be adjusted correspondingly and recognized as other miscellaneous
income and recorded in capital reserves.
Recognition of the share of net loss by the investment receiver shall be limited to when the book value of
long-term equity investment and other long-term equity forms substantial net investment has been reduced to
zero. Beside, if the Company is responsible for other losses of the investment receiver, predicted liability shall
be recognized upon the prediction of responsibilities and recorded into current investment loss account. If the
receiver realized net profit in the period thereafter, the share of gains is recovered after making up of share of
losses which has not been recognized.
12.2.3 Disposal of long-term equity investment
Whiledisposal of long-term equity investment, the difference between the book value and actual price
received shall be accounted into current gains/losses. For long-term equity investment accounted on equity
basis, the part originally accounted into shareholders’ equity is carried over to current gains/losses at
corresponding rate when disposed.
12.3 Recognition standards the common control over and significant influence on the invested units
Controlling power means the power over the firm’s financial and operational decision-making, and can obtain
profit from the operation of such firm. Mutual control means the controlling power on particular activity hold
together with others against particular contract, and shall only take effect when all of the investment parties
has collective affirmative opinions on the major financial or operational issues. Significant influence means
the power to participate in decision-making but cannot control or collectively control the same. At considering
of substantial control or significant influence of a firm, the potential voting right factors such as current
convertible bonds or executable subscription options have been considered.
12.4 Impairment testing and basis of impairment provision
Impairment testing is performed on the long-term equity investment at each balance sheet date. In case of
there is evidence showing impairment has occurred, the recoverable amount shall be assessed. If the
recoverable amount is lower than the book value, the impairment provision shall be provided at the difference
and accounted into current income account.
Once the impairment loss of a long-term equity investment is recognized, it shall not be written back in
subsequent fiscal periods.
13. Investment real estate
Investment real estate is defined as the real estate with the purpose to earn rent or capital appreciation or both,
including the rented land use rights and the land use rights which are held and prepared for transfer after
appreciation, the rented buildings.
Investment real estate is measured according to the initial cost. The follow-up expenses that are related to
investment real estate, if the economic interests related to the assets are is likely to inflow cost and its costs
can be reliably measured, shall be included in the cost of investment real estate. The other follow-up expense
shall be included in the current gains/losses.
The Company adopts the cost model to have follow-up measurements of the investment real estate, and to
conduct depreciation or amortization according to the policies that are in consistent with the land use rights.
2 - 1 - 38
Impairment testing is performed on investment real estate at each balance sheet day. When evidence showing
that impairment has occurred, the recoverable value shall be assessed. Assessment of recoverable value is
based on individual asset. If the recoverable value was hard to evaluate separately, it shall be decided along
with the group of assets it belongs to. If the recoverable value of an asset is lower than its book value, the
balance shall be provided for impairment provision and accounted into current gains/losses.
Once impairment of investment real estate was recognized, it will not be written back in the subsequent fiscal
periods.
The difference of the income from the sale, transfer, dispose of the investment real estate deducting the book
value and relevant taxes shall be included in the gains and losses of the current period.
14. Fixed assets
14.1 Recognition conditions for the fixed assets
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing
services, lease or for operation & management, and have more than one fiscal year of service life. The fixed
assets recognized on the condition of economy benefit probably in-flow into the Company and the cost should
measured reliably only. Initial measurement shall be conducted on fixed assets according to the actual cost
when obtain them and also considering the expected costs for disposal.
Concerning the follw-up expenses related to fixed assets, if the relevant economy benefit of fixed assets
probably in-flow into the Company and can be measured reliabliy, reckoned into cost of fixed assets and
terminated the recognition of the book value of the parts that been replaced. Others follow-up expenses should
reckoned into current gains/losses while occurred.
14.2 Depreciation of various fixed assets
From the next month since reaching the intended use state, depreciations on fixed assets shall be accounted by
using the method of average life length except the steam turbine generating unit that accounted by withdrawal
the working volume method.
Life expectancy, expected net impairment value and annual depreciation rate of all assets are as follows:
Annual
Item Life expectancy Salvage value rate
depreciation rate
Houses and buildings 20 years 10% 4.50%
Equipment (fuel
machinery group 10 years 10% 9%
excluded)
Equipment--fuel
The work quantity
machinery group 10%
method
(note)
Transportation tools 5-10 years 10% 9%-18%
Other equipment 5 years 10% 18%
Estimated salvage value refers to the amount of value retrieved after deducting of predicted disposal expense
when the expected using life of a fixed asset has expired and in the expected state of termination.
Note: Steam turbine generating unit that accounted by withdrawal the working volume method, the
specifications are as follows:
Depreciation sum
Name Fixed assets
(RMB/hour)
The Company No.1 Power Group 4,225.09
No.3 Power Group 4,401.76
2 - 1 - 39
No.7 Power Group 4,407.11
Shenzhen New Power
Industrial Co., Ltd. (New No.10 Power Group 3,954.47
Power Company)
No.1 Power Group 1,911.87
Shenzhen Nanshan Power No.2 Power Group 688.66
(Zhongshan) Co., Ltd
No.3 Power Group 1,902.68
(“Zhongshan Power”)
No.4 Power Group 693.18
No.1 Power Group 2,009.43
Shennandian (Dongguan) No.2 Power Group 585.11
Weimei Co., Ltd (“Weimei
No.3 Power Group 1,980.18
Power Company”)
No.4 Power Group 585.08
14.3 Impairment test on fixed asset and providing of impairment provision
Impairment testing is performed on fixed asset at each balance sheet day. When evidence showing that
impairment has occurred, the recoverable value shall be assessed. Assessment of recoverable value is based on
individual asset. If the recoverable value was hard to evaluate separately, it shall be decided along with the
group of assets it belongs to. If the recoverable value of an asset is lower than its book value, the balance shall
be provided for impairment provision and accounted into current gains/losses.
Once fixed asset impairment is recognized, it shall not be written back in subsequent fiscal periods.
14.4 Other remarks
The Company rechecks, at least at the end of each year, the useful life, estimated net residual value, and total
hours of power generation of gas turbine generator units and depreciation method of fixed assets. In case of
any change to the above said items, it will be treated as change of accounting estimate
Terminated the recognition of fixed assts that in the status of disposal or pass through the predicted usage or
without no economy benefits arising from disposal. Income from treatment of fixed asset disposing,
transferring, discarding or damage, the balance after deducting of book value and relative taxes is recorded
into current income account.
15. Construction-in-progress
Cost of construction in process is determined at practical construction expenditures, including all expenses
during the construction, capitalized loan expenses before the construction reaches useful status, and other
relative expenses. No depreciation accrued on construction in progress. It is transferred to fixed asset as soon
as the construction reaches the useful status.
Impairment testing is performed on construction in process at each balance sheet day by the Company.
When evidence showing that impairment has occurred, the recoverable value shall be assessed. Assessment of
recoverable value is based on individual asset. If the recoverable value was hard to evaluate separately, it shall
be decided along with the group of assets it belongs to. If the recoverable value of an asset is lower than its
book value, the balance shall be provided for impairment provision and accounted into current gains/losses.
Once impairment of construction in progress impairment is recognized, it shall not be written back in
subsequent fiscal periods.
16. Borrowing expenses
Borrowing expenses that can be directly attributed for purchasing or construction of assets that are complying
with capitalizing conditions start to be capitalized when the payment of asset and borrowing expenses have
already occurred, and the purchasing or production activities in purpose of make the asset usable have started;
Capitalizing will be terminated as soon as the asset that complying with capitalizing conditions has reached its
usable or saleable status. The other borrowing expenses are recognized as expenses when occurred.
2 - 1 - 40
Interest expenses practically occurred at the current term of a special borrowing are capitalized after
deducting of the bank saving interest of unused borrowed fund or provisional investment gains; Capitalization
amounts of common borrowings are decided by the weighted average of exceeding part of accumulated asset
expenses over the special borrowing assets multiply the capitalizing rate of common borrowings adopted.
Capitalization rates are decided by the weighted average of common borrowings.
17. Intangible assets
17.1 Intangible assets
Intangible assets including land-use right and rights of patent etc
The intangible assets are subject to initial measurement at cost. Those intangible assets with limited useful life
are evenly amortized on straight basis from the date when they become useable to the end of expected useful
life. The intangible assets with un-certained service life should not be amortized.
The useful life and amortization method of intangible asset with limited useful life is rechecked at the end of
the period.
17.2 Impairment test method of intangible assets & calculation method of depreciation reserve
The Company checks, on every balance sheet date, whether the intangible asset with certain useful life shows
evidence of possible depreciation. If any, its recoverable amount will be estimated. The recoverable amount of
assets is estimated on the basis of individual asset. If it is difficult to estimate the recoverable amount of
individual asset, the recoverable amount of asset group will be determined on the basis of the belonging asset
group of the assets. If the recoverable amount of the assets is less than its book value, the assets depreciation
reserve will be accrued according to their balance and counted in the current gains/losses.
The intangible assets with uncertain service life and those not yet up to the serviceable condition are subject to
impairment test annually whether there is evidence of depreciation.
Once intangible asset impairment loss was recognized, shall not be written back in subsequent fiscal periods.
18. Long-term expenses to be amortized
Long-term amortizable expenses are those already occurred and amortizable to the current term and
successive terms for over one year. Long-term amortizable expenses are evenly amortized to the benefit
period.
19. Predicted liabilities
Responsibilities connected to contingent issues are the current liability undertaken by the Company and the
liability has the probability of result in financial benefit outflow and the responsibility can be measured
reliably for its value.
At balance sheet day, with reference to the risks, uncertainty and periodic value of currency that connected to
the contingent issues, the predicted liabilities are measured according to the best estimation on the payment to
fulfil the current responsibility. If the monetary value has significant influence, than recognized the best
estimation amount based on discount of predicted furute cash flow.
If the expenses for clearing of predictive liability is fully or partially compensated by a third party, and the
compensated amount can be definitely received, it is recognized separated as asset. The compensated amount
shall not be greater than the book value of the predictive liability.
20. Recognition of income
2 - 1 - 41
20.1 Goods sales revenue
When significant risks and rewards of ownership of goods have been transferred to buyer, no continuous
management right regularly related to ownership is retained, no effective control is conducted on goods sold,
moreover, amount of income may be measured in a reliable way, relevant economic profit may have flown
into enterprise and relevant incurred cost or to be incurred may be measured in a reliable way, implementation
of goods sales revenue will be confirmed.
20.2 Revenue from Providing Labor Service
Under the condition of service providing business can be estimated in a reliable way, relevant economic
benefit is likely to flow into enterprise, completion degree of business may be estimated in a reliable way and
relevant incurred cost and to be incurred may be measured in a reliable way, the revenue from labor service
providing recognized. Relevant service revenue may be confirmed by the Company as
percentage-of-completion method on balance sheet date. Completion degree of service business will be
determined as share of incurred service cost in estimated general cost.
If result of service providing business can’t be estimated in a reliable way, service revenue should be
confirmed as amount of incurred service cost expected to be compensated, where incurred service cost is
taken as period charge. If no compensation is expected for incurred service cost, income won’t be confirmed.
21. Government grant
Government subsidies are those monetary and/or non-monetary assets obtained from the government by free.
Government subsidies are recognized when satified the attached qualification of government grant and
receivable on hand.
Those government grants of monetary assets are measured at the amount received or receivable.
Non-monetary government grants are measured at fair value. If no fair value is available, nominal amount will
be adopted. Government subsidies measured at nominal amount are accounted into current gains/losses
directly.
Asset-related government grants are recognized as deffered income and accounted into current gains/losses
evenly upon their service life.
Those income-related government grants used to neutralize relative expenses and losses of successive periods
are recognized as deffered income and accounted into current income at the period when the expenses are
recognized; those used to neutralize relative expenses and losses which have already occurred are accounted
into current gains/losses directly.
If confirmed government grant needs to be surrendered，for government grant with relevant balance of
deferred income，book balance of relevant deferred income will be offset while remnant will be included in
current profit and loss. On the contrary, for government grant without relevant deferred income, it will be
directly in current gain and loss.
22 Deferred income tax asset/ deferred income tax liability
Income tax expense includes current income tax and deferred income tax.
22.1 Current income tax
On balance sheet date, current income tax liability (or asset) formed during and before current period will be
measured as amount of income tax payable (or repayable) as specified by tax law.
22.2 Deferred income tax asset & deferred income tax liability
2 - 1 - 42
For balance of book value of some asset/liability item and its tax base, or temporary difference derived from
balance of book value and tax base of the item, which is not confirmed as asset or liability but tax base can be
fixed as specified by tax law, deferred income tax asset & deferred income tax liability will be confirmed in
balance sheet liability approach.
Generaly, all temporary difference shall be recognized as relevant deferred income tax. But concerning the
deductable temporary difference, relevant deferred income tax asset may be confirmed subject to amount of
taxable income which is likely to be acquired to deduct deductible loss and taxation decrease in the future.
Furthermore, for taxable temporary difference, which is related to initial recognition for goodwill and asset or
liability produced by transaction which neither is business combination nor affects accounting profit and
taxable income (or deductible loss), relevant deferred income tax liability won’t be confirmed.
For deductible loss and taxation decrease which can be carried over to following fiscal year, relevant deferred
income tax asset may be confirmed subject to amount of taxable income which is likely to be acquired to
deduct deductible loss and taxation decrease in the future.
The Company recognized deferred income tax liabilities arising from taxable temporary differences of
investment related between the subsidiaries, associated enterprise and joint ventures, unless the Company
control time of switch-back on temporary differences and the difference will not be switch-back probably in
predicted future. For those deductible temporary differences related to investment with subsidiaries,
associated enterprise and joint ventures, the Company have deferred income tax assets recognized on the
condition of temporary differences might probably carry-back in predicted future and in the future, have the
protability obtained taxable amount that should be deducted the deductible temporary differences.
At the balance sheet day, those deffered income tax assets and income tax liabilities, according to the tax law,
calculation will be on tax rate applicable to retrieving period of assets or clearing of liabilities.
Other current income tax and deferred income tax or income reckoned into current gains/loss except the
followed: the current income tax and deferred income tax related to the transation and event of other
consolidation income or shareholers’ equity reckoned, counted into other consolidation income or
shareholders’ equity together with the book value of goodwill adjusted of deferred income tax arising from
enterprise merger.
At the balance sheet day, verification will be performed on the book value of differed income tax assets. If it
is not possible to obtain enough taxable income to neutralize the benefit of differed income tax assets, then the
book value of the differed income tax assets shall be reduced. Whenever obtaining of taxable income became
possible, the reduced amount shall be restored.
When accounting with net amount is a stipulated rights, and tending to account with net amount or acquire of
asset and clearing of debts are performed simultaneously, the income tax asset and liabilities of the current
term are accounted at net amount after neutralization.
When accounting of income tax asset and liabilities of current term with net amount is the stipulated rights,
and the income tax asset and liabilities are related to the same subject recognized by the same taxation
authority, or to the different subjects but within each period of writing back the differed income tax asset and
liabilities with great importance, and tending to account with net amount or acquire of asset and clearing of
debts are performed simultaneously, the income tax asset and liabilities of the current term are accounted at
net amount after neutralization.
23. Operational leasing and financial leasing
Finance lease is to virtually transfer all risks and rewards related to ownership of asset. Leases other than
finance lease are operating leases.
2 - 1 - 43
23.1 Lease business with the Company as the rentee
The rental is reckoned into the relevant assets cost or the current loss/gain in the linear way. The initial direct
expenses are reckoned into the current gain/loss, or the actual rental into the current loss/gain.
23.2 Lease business with the Company as the rentor
The rental is reckoned into the relevant assets cost or the current loss/gain in the linear way. The initial direct
substantive expenses are capitalized and reckoned into the current gain/loss, or the actual rental into the
current loss/gain. The initial direct small expenses are reckoned into the current actual gain/loss, or the actual
rental into the current loss/gain.
24. Other Main Accounting Policies, Estimations and Preparation Method
24.1 Employee wages
Except for the compensation for labor contract termination, the payable employee wages in the accounting
period of service provided by employee of the Company were recognized as liabilities.
The Company participates in social security system for employee set up by government department as
specified, including basic pension insurance, medical insurance, and housing fund and other systems.
Expenses involved will be included in relevant cost of asset and current profit and loss when actually
incurred.
The Company will sever labor relation with employee prior to expiration of labor contract, or encourage
employee to voluntarily accept layoff and put forward suggestion on compensation. If we have formulated
formal plan for severing labor relation or put forward voluntary layoff suggestion and plan to put into effect
meanwhile the plan and suggestion can’t be withdrawn unilaterally, estimated liability produced by
compensation for severing labor relation with employee will be confirmed and included in current profit and
loss.
24.2 Debt restructures
24.2.1. Obligation of recording debt restructuring as debtor
For debt liquidated with cash, balance between book value of debt to be restructured and amount of actual
payment will be included in current gain and loss. On the contrary, for debt liquidated with non-cash asset,
balance between book value of debt to be restructured and fair value of non-cash asset transferred will be
included in current gain and loss. Balance between fair value of non-cash asset transferred and book value of
debt to be restructured will be included in current gains and loss.
When debt is transferred to capital, balance between book value of debt to be restructured and fair value of
loaner’s share derived from disclaim will be included in current gains and loss.
When other terms of debt are modified, fair value of debt after modification will be taken as entry value of
restructured debt. Balance between book value of debt prior to restructuring and debt restructured will be
included in current gain and loss.
When combination of multiple modes is applied, book value of debt to be restructured will be offset by cash
for payment, fair value of non-cash asset transferred and fair value of loaner’s share successively, then
applicable method under modification mentioned above will be applied.
24.2.2. Obligation of recording debt restructuring as loaner
For debt liquidated with cash, balance between book balance of credit to be restructured and cash received
2 - 1 - 44
will be included in current gain and loss. On the contrary, for debt liquidated with non-cash asset, balance
between book balance of credit to be restructured and fair value of non-cash asset received will be included in
current gain and loss.
When debt is transferred to capital, balance between fair value of loaner’s share and book balance of credit to
be restructured will be included in current gain and loss.
When other terms of debt are modified, fair value of credit after modification will be taken as book value of
credit to be restructured. Balance between book balance of debt prior to restructuring and book value of credit
restructured will be included in current gain and loss.
When combination of multiple modes is applied, book balance of credit to be restructured will be offset by
cash received, fair value of] non-cash asset received and fair value of loaner’s share successively, applicable
method under modification mentioned above will be applied.
When depreciation reserve has been accrued in credit to be restructured, accrual depreciation
reserve will be offset by balances above. Remnant after offset will be included in current
gain and loss.
（III) Taxes
1. Main taxation items and its tax rate
Taxation items Calculation bases Tax rare
Output tax calculated
Balance of current output tax based on the 13% or 17%
VAT
deducting current input tax of the sales volume
regulated by Tax Law
Business tax Income of business 3% or 5%
VAT and business tax actually
City maintenance tax 7%
paid
VAT and business tax actually
Education surtax 5%
paid
Enterprise income tax
Taxable income 16.5% to 25%
(Note 1)
1.2% for the remaining
Calculated by the original value
sum of real estate; 12% for
Real estate tax of real estate deducting 30%;
the rent income of the real
rent income of the real estate
estate
RMB 4.00 per Square
Land-use tax of town Land occupation actually area
meter
Note1: Tax rate of the enterprise income tax for the Company and its subsidiaries are shown as follows:
Name of the Company and its subsidiaries Tax rate of enterprise income tax
2011 2010
The Company 24% 22%
Shenzhen New Power Industrial Co., Ltd. (New 24% 22%
Power)
Shennan Power Gas Turbine Engineering 24% 22%
Technique Co., Ltd. (“Engineering Co.,)
Shenzhen Xiefu Fuel Supply Co., Ltd. 24% 22%
2 - 1 - 45
(“Xiefu Fuel Supply”)
Shennandian Environment Protection 24% 22%
(“Environment Co.,”)
Zhongshan Power Grid 24% 22%
Weimei Power Grid 24% 22%
SHENNAN ENERGY (SINGAPORE) PTE 20% 20%
LTD (“Shennan Signapore”)
Zhongshan Shenzhong Real Estate
Development Co., Ltd. (“Shenzhong 25% 25%
Development Co.,”)
Zhongshan Shenzhong Real Estate Investment
Property Co., Ltd. (“Shenzhong Property 25% 25%
Investment”)
Huidong Xiefu Harbour Comprehensive 25% 25%
Development Co., Ltd. (“Huidong Xiefu Co.,”)
Huidong Harbour Development Co., Ltd. 25% 25%
(“Huidong Harbour Co.,)
HONG KONG SYNDISOME CO., LIMITED 16.50% 16.50%
(“Syndisome Co., )
The Company, New Power, Engineering Co., Xiefu Fuel Supply and Environment Co., are the enterprise that
established in the special economic zone. Zhongshan Power Grid and Weimei Power Grid are the
foreign-investment enterprises that engaged in the manufacture of energy. The applicable income tax rate of
the abovementioned subsidiaries and the Company was 15% before 1 January 2008. Since 1 January 2008, the
tax rate will gradually turns to 25% in five years. The Company and abovementioned subsidiaries apply 24%
tax rate in the report period.
2. Taxes preferential and approvals
Name of
the Relevant regulation and Approval Approval Exemption Period of
Tax company policies basis institution documents range validity
Enterpris Weimei Enterprise Income Tax Law of Inapplicable Inapplicabl Two years
e income Power People’s Republic of China and e free-tax and
tax Grid Notice of Transition three years
2008.1.1~2
Preferential Policy on half-taxes on
012.12.31
Enterprise Income Tax from enterprise
State Council. (State income tax since
IssueNo.39 [2007]) 2008.
Enterpris Zhongsh Enterprise Income Tax Law of Inapplicable Inapplicabl Two years
e income an Power People’s Republic of China and e free-tax and
tax Grid Notice of Transition three years
2008.1.1~2
Preferential Policy on half-taxes on
012.12.31
Enterprise Income Tax from enterprise
State Council. (State income tax since
IssueNo.39 [2007]) 2008.
2 - 1 - 46
(IV) Enterprise merger and Consolidated Financial Statement
Particular about subsidiaries
1. Subsidiaries obtained through establishment or investment
Unit: RMB
Other item
Actual balance of
Full name of Regist Busine Proportion Proportion Consolidated
Type of Register investment net
the er ss Business scope shares held of voting statement
subsidiaries capital ending Jun. 30 investment
subsidiaries place nature (%) right (%) Yes/No
of 2011 towards
subsidiaries
Xiefu Fuel Self-business of fuel and agent for
Limited Shenz
Supply Co., Trading 53,300,000.00 import-export 26,650,000.00 N/A 50 50 Yes
Liability hen
(note)
Jointed Power Technical development on wasted-heat N/A Yes
New Power Shenz
enterprise(H. generati 113,850,000.00 usage, power generation by wasted-heat 113,850,000.00 100 100
Co., hen
K-capital) on and fuel power
Jointed Power Fuel power and power generation by N/A Yes
Zhongshan Zhong
enterprise(H. generati 396,800,000.00 wasted-heat 317,440,000.00 80 80
Power Grid shan
K-capital) on
Enginee technical consultation and relevant N/A Yes
Jointed
Engineering Shenz ring maintenance and inspection on running
enterprise(H. 10,000,000.00 13,520,000.00 100 100
Co., hen consult equipments for the union cycle power
K-capital)
ation station by fuel gas and steam
Jointed Power Establishment and operation of natural N/A Yes
Weimei Power Dongg 35,040,000.00
enterprise(H. generati gas power station 208,102,049.76 70 70
Grid uan USD
K-capital) on
Jointed Sludge drying N/A Yes
Environment Shenz Enginee
enterprise(H. 79,000,000.00 79,004,403.00 100 100
Co., hen ring
K-capital)
Pier Establishment and operation of N/A Yes
Huidong Xiefu Limited Shenz
operatio 8,620,000.00 comprehensive pier and its affiliated 6,465,001.00 84 84
Co., Liability hen
n facilities
Pier Establishment and operation of general N/A Yes
Huidong Limited Shenz
operatio 10,000,000.00 cargo pier, oil product pier, oil depot 5,500,000.00 55 55
Harbor Co., Liability hen
n and affiliated facilities
Note: the Company holds 50% equity of the Xiefu Fuel Supply, and occupied majority voting rights in Xiefu Fuel Supply. Therefore, collected Xiefu Fuel Supply into the
consolidated scope for actually controlling owned by the Company.
2 - 1 - 47
2. Subsidiaries obtained through merger under no common control
Unit: RMB
Full name Type
Regist Actually invested Other item balance Consolidated
of the of Business Register Proportion Proportion of
er Business scope capital at of net investment statement
subsidiarie subsid nature capital shares held (%) voting right (%)
place period-end towards subsidiaries Yes/No
s iaries
Limite gas turbine and its
Shennan
d Singap 1,500,000.00 spares and fuel
Singapore Trading 1,500,000.00 SGD - 100 100 Yes
Liabili ore SGD agents
Co.,
ty
real estate Yes
Limite Real investment, property
Shenzhong
d Zhong estate 177,800,000. management, sales of
Developme - - 75 75
Liabili shan developm 00 self-owned
nt Co.,
ty ent commercial houses,
rental and investment
real estate Yes
Shenzhong Limite Real investment, property
Property d Zhong estate 60,000,000.0 management, sales of
- - 75 75
Investment Liabili shan developm 0 self-owned
” ty ent commercial houses,
rental and investment
Limite import-export trading Yes
Syndisome Import-ex
d Hong 200,000.00
Co., (note port 200,000.00 HKD - 100 100
Liabili Kong HKD
1) trading
ty
Note: On December 5, 2008, ShenNan Singapore Company and ShenYe Investment and Management Co., Ltd signed the Share Transfer Agreement on the
Purchase and Selling 2000 Shares of the Common Stock of HONGKONGSYNDISOMECO., LIMITED, (Hein after referred to as ShenYe Investment
Company), ShenNan Singapore Company is to transfer 100% stock right which it has of Syndisome Company to ShenYe Investment Company at the
consideration of 393,885,100.00 Hong Kong dollar. According to this Transfer Agreement, ShenYe Investment Company should pay 1,000,000.00 Hong
Kong dollars on the date of transfer agreement, and pay the remaining transfer money within the six months after the date. Up to the approval day of this
financial statements, ShenYe Investment Company hasn’t yet paid 392,885,100.00 Hong Kong dollar of the remaining transfer money, so the Company still
possess the actual control right over Syndisome Company, therefore will include it into the Consolidation scope of the Consolidation financial statements.
2 - 1 - 48
(V) Notes to Consolidated Financial Statement
1. Monetary capital
Unit: RMB
2011-6-30 2010-12-31
Items Amount of Exchange Amount of Exchange Amount of
Amount of RMB
foreign currency Rate foreign currency Rate RMB
Cash:
RMB - - 216,660.79 121,987.47 1.00 121,987.47
HKD 82,656.91 0.83 68,737.49 82,656.91 0.85 70,332.77
USD 10,822.53 6.47 70,039.07 995.22 6.62 6,591.04
EUO 1,017.87 9.36 9,528.48 1,017.87 8.81 8,963.88
Bank savings:
RMB - - 505,756,546.40 575,020,508.91 1.00 575,020,508.91
HKD 5,335,635.82 0.83 4,437,114.75 5,369,706.06 0.85 4,569,082.89
USD 1,538,888.47 6.47 9,959,070.60 1,658,289.85 6.62 10,982,356.19
SGD 70,879.81 5.24 371,714.99 22,144.87 5.12 113,361.80
Other monetary
capital:
RMB (Note) - - 118,686,412.80 10,488,747.90 1.00 10,488,747.90
USD 737.04 6.47 4,769.83 737.04 6.62 4,881.19
Total 639,580,595.19 601,386,814.04
Note: was the guarantee margin and credit card savings. As at 30 June 2011, the restrained margin amounting
to RMB 10,000,000.00 (RMB 10,000,000 as at 31 December 2010).
2. Note receivable
Unit: RMB
Type 2011-6-30 2010-12-31
Bank Acceptance Bill - 700,000.00
At the end of report period, the note receivable in advance decrease 100% over year-begin, mainly caused by
the due of note receivable in this period.
3. Account receivable
(1) Account receivable classified according to types:
Unit: RMB
2011-6-30 2010-12-31
Balance at book Bad debt provision Balance at book Bad debt provision
Type
Proportion Proportion Proportion Proportion
Amount (%) Amount (%) Amount (%) Amount (%)
Account
receivable
10,426,731.34 1.11% 4,580,704.34 92.13% 12,135,091.34 2.32% 4,580,704.34 37.75%
with
individual
2 - 1 - 49
major amount
and
withdrawal
bad debt
provision
independently
Accounts
receivable
with minor
amount and
accounts
receivable
with major
928,468,451.10 98.72% - 0.00% 508,090,413.69 97.08% - -
amount found
no
devaluation
after
individual
devaluation
test
Account
receivable
with
individual
minor amount
1,646,915.10 0.18% 391,079.10 7.87% 3,138,555.10 0.6% 391,079.10 12.46%
but
withdrawal
bad debt
provision
independently
Total 940,542,097.54 100.00% 4,971,783.44 100.00% 523,364,060.13 100% 4,971,783.44 0.95%
The Group recognized account receivable with over RMB 2 million (RMB 2 million included) as significant
single amounts.
Age analysis of account receivable:
Unit: RMB
2 - 1 - 50
2011-6-30 2010-12-31
Age
Amount Proportion (%) Bad debt provision Book value Amount Proportion (%) Bad debt provision Book value
Within 1year 928,865,562.10 98.76% - 928,865,562.10 508,292,525.93 97.12% - 508,292,525.93
1 to 2years 300,000.00 0.03% 15,000.00 285,000.00 - - - -
2 to 3years 6,263,319.00 0.67% 626,043.00 5,637,276.00 6,358,317.76 1.21% 641,043.00 5,717,274.76
Over 3 years 5,113,216.44 0.54% 4,330,740.44 782,476.00 8,713,216.44 1.67% 4,330,740.44 4,382,476.00
Total 940,542,097.54 100.00% 4,971,783.44 935,570,314.10 523,364,060.13 100% 4,971,783.44 518,392,276.69
2 - 1 - 51
(2) Account receivable with individual minor amount but withdrawal bad debt provision independently at
period-end:
Unit: RMB
Content of account Withdrawal amount of bad Withdrawal
receivable Balance of Book debt provision proportion (%) Reasons
Account of engineering Un-recover partially for
1,646,915.10 391,079.10 23.75%
receivable overdue
(3) There are no account receivable of the shareholders who hold over 5 %( 5% included) voting rights in
report period.
(4)Top 5 companies in account receivables
Unit: RMB
Relationship
between the Proportion in total account
Name of the company Company Amount Age receivable (%)
Bureau of Finance of Shenzhen Government Within 1
402,652,045.62 42.81%
Municipality institution year
Government Within 1
Finance Bureau of Dongguan 160,216,341.40 17.03%
institution year
Guangdong Power Grid Corporation of Non-related Within 1
142,419,266.01 15.14%
Shenzhen Bureau client year
Non-related Within 1
Guangdong Power Grid Corporation 121,639,636.76 12.93%
client year
Bureau of Finance of Zhongshan Government Within 1
99,029,138.80 10.53%
Municipality institution year
Total 925,956,428.59 98.45%
(5) Period-end accounts receivable increased by 80.485 over year-begin mainly due to subsidies for fuel
power increased.
4. Account paid in advance
(1) Account paid in advance classified according to age:
Unit: RMB
2011-6-30 2010-12-31
Age
Amount Proportion (%) Amount Proportion (%)
Within 1year 23,966,176.11 97.54% 12,746,630.59 94.21%
1to 2years 290,003.98 1.18% 542,468.58 4.01%
2to 3years 21,504.71 0.09% 21,224.71 0.16%
Over 3 years 293,578.01 1.19% 219,578.01 1.62%
Total 24,571,262.81 100.00% 13,529,901.89 100%
(2) Top 5 companies in account paid in advance:
Unit: RMB
Name of the company Relationship Amount Duration Reasons for
2 - 1 - 52
between the unsettlement
Company
Non-related Within Purchase paid in
Shenzhen Nangang Power Project Co., Ltd 9,034,000.00
supplier 1year advance
Non-related Within Natural gas fee
Shenzhen Dapeng LNG Sales Co., Ltd 6,525,887.12
supplier 1year paid in advance
Non-related Within Natural gas fee
Shenzhen Xishun Industy Development Co., Ltd 3,074,637.62
supplier 1year paid in advance
Xinjiang Guanghui LNG Development Co., Ltd Branch Non-related Within Natural gas fee
1,591,651.15
in Qishan supplier 1year paid in advance
Xinjiang Guanghui LNG Development Co., Ltd Non-related Within Natural gas fee
1,002,312.35
Transportation Branch in Qishan supplier 1year paid in advance
Total 21,228,488.24
(3)There are no account paid in advance of the shareholders who hold over 5 %( 5% included) voting rights
in report period.
(4) Reporting period-end accounts paid in advance increased by 81.61% over year-begin mainly due to
fuel fess paid in advance.
5. Other account receivable
（1） Other account receivable classified according to type:
Unit: RMB
2 - 1 - 53
2011-6-30 2010-12-31
Book amount Bad debt provision Book amount Bad debt provision
Type
Proportion Proportion Proportion Proportion
Amount (%) Amount (%) Amount (%) Amount (%)
Account
receivable
with
individual
major amount
26,237,404.46 49.21% 26,237,404.46 87.68% 26,237,404.46 52.08% 26,237,404.46 100%
and
withdrawal
bad debt
provision
independently
Accounts
receivable
with minor
amount and
accounts
receivable
with major
18,992,690.29 35.62% 0.00 0.00% 18,742,661.50 37.21% - -
amount found
no
devaluation
after
individual
devaluation
test
Account 8,091,938.69 15.18% 3,686,910.48 12.32% 5,394,398.21 10.71% 3,686,910.48 68.35%
2 - 1 - 54
receivable
with
individual
minor amount
but
withdrawal
bad debt
provision
independently
Total 53,322,033.44 100.00% 29,924,314.94 100.00% 50,374,464.17 100% 29,924,314.94 59.4%
2 - 1 - 55
The Group recognized other account receivable with over RMB 2 million (RMB 2 million included) as
significant single amounts.
Other account receivable classified according to age:
Unit: RMB
2011-6-30 2010-12-31
Age Proportion Bad debt Proportion Bad debt
Amount (%) provision Book value Amount (%) provision Book value
Within
17,122,527.47 32.11% - 17,122,527.47 14,174,958.20 28.14% - 14,174,958.20
1year
1to 2
4,352,781.54 8.16% - 4,352,781.54 4,352,781.54 8.64% - 4,352,781.54
years
2to 3
81,091.50 0.15% - 81,091.50 81,091.50 0.16% - 81,091.50
years
Over
31,765,632.93 59.57% 29,924,314.94 1,841,317.99 31,765,632.93 63.06% 29,924,314.94 1,841,317.99
3years
Total 53,322,033.44 100.00% 29,924,314.94 23,397,718.50 50,374,464.17 100% 29,924,314.94 20,450,149.23
(2) Period-end account receivable with individual minor amount but withdrawal bad debt provision
independently:
Unit: RMB
Content of other account Withdrawal amount Withdrawal
receivable Book balance of bad debt provision proportion (%) Reasons
Shenzhen Gaiya Environment
1,496,448.19 1,496,448.19 100.00% Unrecovered for overdue
Technology Co., Ltd
Unrecovered for partial
Other 6,595,490.50 2,190,462.29 33.21%
overdue
Total 8,091,938.69 3,686,910.48 45.56%
(3) There are no other account receivable of the shareholders who hold over 5 %( 5% included) voting rights
in report period.
(4) Top 5 companies in other account receivable
Unit: RMB
Relationship
between the Proportion in total other
Name of the company Company Amount Duration account receivable (%)
Project cooperation
14,311,626.70 Over 3 years 26.84%
Huiyang Kangtai Industrial Co., party
Wiyhin one
Shenzhen Dapeng LNG Sales Co., Ltd Non-related client 10,032,000.00 18.81%
year
Shenzhen Nanshan Investment
Non-related client 5,895,738.00 Over 3 years 11.06%
Management Company
JINAN POWER EQUIPMENT Non-related client 3,560,000.00 Over 3 years 6.68%
2 - 1 - 56
FACTORY
Income tax advance for another Inapplicable 2,470,039.76 Over 3 years 4.63%
Total 36,269,404.46 68.02%
6. Inventory
(1) Classification of inventory
Unit: RMB
2011-6-30 2010-12-31
projects Depreciation Depreciation
Book balance provision Book value Book balance provision Book value
Fuels 30,446,511.42 400,686.44 30,045,824.98 164,666,409.63 3,121,172.54 161,545,237.09
Raw materials 154,183,988.83 17,199,322.54 137,040,994.29 144,530,444.66 17,199,322.49 127,331,122.17
Land Space
1,109,099,484.6 1,063,495,852.8
Needed to 1,130,806,783.73 45,603,631.85 1,085,203,151.88 45,603,631.85
5 0
Development
1,418,296,338.9 1,352,372,212.0
Total 1,315,437,283.98 63,203,640.83 1,252,289,971.15 65,924,126.88
4 6
In the balance of inventory at period-end, amount for loan pledge totally to RMB 234,171,184.79 (as at 31
December 2010: RMB 229,163,561.16).
In the balance of inventory at period-end, the capitalizing loan expenses amounting to RMB 145,453,033.22
(as at 31 December 2010: RMB 124,204,731.24). The capitalizing loan expense of this year was RMB
21,248,301.98 and the capitalizing rate was 5.31%.
(2)Depreciation provision of inventory
Unit: RMB
Accruing amount Decrease in this year Book balance
Inventory type 2010-12-31
at this year Reversal Charge-off ending 2011-6-30
Fuels 3,121,172.54 - - 2,720,486.05 400,686.49
Raw materials 17,199,322.49 - - 0.00 17,199,322.49
Development cost of
45,603,631.85 - - 0.00 45,603,631.85
real estate
Total 65,924,126.88 - - 2,720,486.05 63,203,640.83
7. Other current assets
Other current assets shown by category:
Unit: RMB
2011-6-30 2010-12-31
Category Devaluation Devaluation
Amount Net amount Amount Net amount
provision provision
Long-term assets held
- - - 5,875,631.20 1,633,199.83 4,242,431.37
for sale
Period-end other current assets decreased by 100% over year-begin mainly due to Shenzhong Development
2 - 1 - 57
Company sold cogeneration equipment.
2 - 1 - 58
8. Investment for affiliated enterprises
Unit: RMB
Voting rights in Jan.-Jun of
The Company 2011-6-30 2011-6-30 2011-6-30 Jan.-Jun of 2011
invested company 2011
Proportion of
Invested company Proportion of
voting right held
share holding Total assets Total liabilities Total net assts Total income Net profit (loss)
by the Company
(%)
(%)
Affiliated enterprises
Jiangxi CPI Xinchang Power Generation Co.,
30% 30% 4,464,167,187.19 3,890,014,599.43 574,152,587.76 1,214,937,820.40 -139,368,268.36
Ltd. (Jiangxi Xinchang for short)
9. Long-term equity investment
Details of long-term equity investment:
Unit: RMB
Explanation on
Proportion Proportion Impairm
the incongruity in
of share of voting ent Cash
Calculati Initial Balance share holding
Invested Increase/decre holding in rights in Impairment provision bonus
on investment 2010-12-31 ending Jun. proportion and
company ase(+,-) invested invested provision of this
method cost 30 of 2011 voting proportion
company company accruing year
in invested
(%) (%) this year
company
Jaingxi Equity 286,285,715.0 -39,857,497.4 187,245,776.8
227,103,274.30 30% 30% - - - -
Xinchang Co., method 0 8 2
Petro-Chemic Cost
2,500,000.00 2,500,000.00 2,500,000.00 4% 4% - 2,500,000.00 - -
al Co., method
Shenzhen
Energy Cost 41,790,000.00 41,790,000.00 89,671,000.00 10% 10% - - - -
47,881,000.00
Environment method
2 - 1 - 59
Co., Ltd.
CPI Jiangxi
Nuclear
37,315,000.00 37,315,000.00 37,315,000.00 5% 5% - - - -
Power Co., Cost
Ltd. method
421,986,115.0 316,731,776.8
Total 308,708,274.30 8,023,502.52 2,500,000.00 - -
0 2
Less:
devaluation 2,500,000.00 2,500,000.00
-
provision
Net amount of
long-term 314,231,776.8
306,208,274.30 8,023,502.52
equity 2
investment
2 - 1 - 60
10. Investment real estate
Unit: RMB
Decreased this
Item 2010-12-31 2011-6-30
Increased this year year
I. Total original book value 9,708,014.96 - - 9,708,014.96
1. House, buildings 9,708,014.96 - - 9,708,014.96
2. Land-use right - - - -
II. Total accumulated depreciation
4,399,244.98 215,382.21 - 4,614,627.19
and accumulated amortization
1. House, buildings 4,399,244.98 215,382.21 - 4,614,627.19
2. Land-use right - - - -
III. Total net book value of
5,308,769.98 - 5,093,387.77
investment real estate
1. House, buildings 5,308,769.98 - 5,093,387.77
2. Land-use right - -
IV. Total depreciation provision
- -
of investment real estate
1. House, buildings -
2. Land-use right - -
V. Total book value of investment
5,308,769.98 - - 5,093,387.77
real estate
1. House, buildings 5,308,769.98 - - 5,093,387.77
2. Land-use right - - - -
11. Fixed assets
(1) Change of fixed assets
Unit: RMB
Decreased this
Items 2010-12-31 Increased this year 2011-6-30
year
I. Total original book value: 4,220,935,520.11 140,904,312.47 529,397.65 4,361,310,434.93
Including: House and buildings 447,729,795.72 - - 447,729,795.72
Machinery equipment 3,675,038,036.84 140,406,377.61 521,597.65 3,814,922,816.80
Transportation means 33,968,349.80 400,167.00 - 34,368,516.80
Other equipment 64,199,337.75 97,767.86 7,800.00 64,289,305.61
II. Total accumulated depreciation: 2,018,728,112.00 104,352,084.82 484,308.05 2,122,595,888.77
Including: House and buildings 185,153,139.13 7,470,207.39 - 192,623,346.52
Machinery equipment 1,754,084,729.67 95,365,577.25 477,288.05 1,848,973,018.87
Transportation means 27,898,786.75 556,002.89 - 28,454,789.64
Other equipment 51,591,456.45 960,297.29 7,020.00 52,544,733.74
III. Total net book value of fixed
2,202,207,408.11 2,238,714,546.16
assts
Including: House and buildings 262,576,656.59 255,106,449.20
2 - 1 - 61
Machinery equipment 1,920,953,307.17 1,965,949,797.93
Transportation means 6,069,563.05 5,913,727.16
Other equipment 12,607,881.30 11,744,571.87
IV. Total impairment provision 32,981,137.38 - - 32,981,137.38
Including: House and buildings 25,686,723.89 - - 25,686,723.89
Machinery equipment 7,030,159.76 - - 7,030,159.76
Transportation means 85,146.84 - - 85,146.84
Other equipment 179,106.89 - - 179,106.89
V. Total book value of fixed assts 2,169,226,270.73 - - 2,205,733,408.78
Including: House and buildings 236,889,932.70 - - 229,419,725.31
Machinery equipment 1,913,923,147.41 - - 1,958,919,638.17
Transportation means 5,984,416.21 - - 5,828,580.32
Other equipment 12,428,774.41 - - 11,565,464.98
Note: including, RMB 17,179,080.82 increased due to purchase, RMB 123,725,231.65 increased due to
transfer in of construction in process, and RMB 529,397.65 decreaased mainly due to disposal.
(2)Temporary stranded fixed assets
Unit: RMB
Items Original book value Accumulated Impairment Net book value
depreciation provision
Balance at period-begin: 466,268,043.17 405,890,620.56 8,329,271.25 52,048,151.36
Including: House and buildings 2,489,600.00 94,720.48 2,394,879.52 -
Machinery equipment 463,752,743.17 405,792,912.04 5,932,755.20 52,027,075.93
Transportation means 3,200.00 - 200.00 3,000.00
Other equipment 22,500.00 2,988.04 1,436.53 18,075.43
Balance ending 2011-6-30 466,242,343.17 405,887,632.52 8,327,634.72 52,027,075.93
Including: House and buildings 2,489,600.00 94,720.48 2,394,879.52 -
Machinery equipment 463,752,743.17 405,792,912.04 5,932,755.20 52,027,075.93
Transportation means - - - -
Other equipment - - - -
(3)Fixed assets with un-finished property certificate
Unit: RMB
Prediction of the
Reason for un-finished
items Original value Net value property certificate
property certificate
finished
Booster station 11,416,072.09 8,126,583.98 Acceptance of project 2011
Steam turbine plant 4,221,136.27 3,073,472.20 completion still in
Chemical water process
building 7,050,395.16 5,095,904.86
Treatment plant of
residue 1,357,924.60 990,691.19
Pump house of fire-
protection 709,475.99 517,311.03
Recycle pump house 4,487,508.99 3,260,059.88
2 - 1 - 62
Comprehensive
building 7,076,356.29 5,332,035.89
Production maintenance
building 9,860,653.25 8,218,360.53
Administration building 10,138,618.59 8,449,849.99
Total 56,318,141.23 43,064,269.55
12. Project in construction
(1) Particulars about projects in construction:
Unit: RMB
2011-6-30 2010-12-31
Items Provision for Book net Provision for Book net
Book balance Book balance
devaluation amount devaluation amount
Oil to Gas Works 41,909,353.41 14,790,696.15 27,118,657.26 41,087,274.71 14,790,696.15 26,296,578.56
Comprehensive
building projects
of recycling
economy 16,608,825.06 - 16,608,825.06 13,255,379.33 - 13,255,379.33
Heat and power
projects of
recycling economy 7,478,636.05 - 7,478,636.05 7,160,526.05 - 7,160,526.05
Equipment
Improvement
Project 11,680,335.40 - 11,680,335.40 9,684,185.63 - 9,684,185.63
Cogeneration of
heat and electricity
Project 10,847,011.94 - 10,847,011.94 8,882,713.73 - 8,882,713.73
Technical
transformation
projects 7,070,194.51 - 7,070,194.51 2,505,000.00 - 2,505,000.00
Sludge drying
project 4,987,004.53 - 4,987,004.53 126,728,860.05 - 126,728,860.05
Others 2,309,513.62 - 2,309,513.62 2,216,233.29 - 2,216,233.29
Total 102,890,874.52 14,790,696.15 88,100,178.37 211,520,172.79 14,790,696.15 196,729,476.64
2 - 1 - 63
(2) Changes of significant projects in construction
Unit: RMB
Proportion
of project
Transferred fixed Budget
Budget Number 2010-12-31 Increase of this year Other decrease investment Project progress 2011-6-30
assets Number
in budget
(%)
Oil to Gas Works 153,200,000.00 41,087,274.71 822,078.70 - - 27.36% 27.36% 41,909,353.41
Comprehensive building
projects of recycling 3,353,445.73 - - 47.45% 47.45% 16,608,825.06
economy 35,000,000.00 13,255,379.33
Heat and power projects
318,110.00 - - 24.93% 24.93% 7,478,636.05
of recycling economy 30,000,000.00 7,160,526.05
Equipment Improvement
1,996,149.77 - - 0.00% 11,680,335.40
Project - 9,684,185.63
Cogeneration of heat and
1,964,298.21 - - 23.74% 23.74% 10,847,011.94
electricity Project 45,700,000.00 8,882,713.73
Technical transformation
4,565,194.51 - - 75.38% 75.38% 7,070,194.51
projects 9,380,000.00 2,505,000.00
Sludge drying project 346,337,000.00 126,728,860.05 1,983,376.13 123,725,231.65 - 1.44% 1.44% 4,987,004.53
Others - 2,216,233.29 93,280.33 - - 2,309,513.62
Total 211,520,172.79 15,095,933.38 123,725,231.65 - 102,890,874.52
(3) Provision for devaluation of projects in construction
Unit: RMB
Decrease of this Reason for
Item Increase of this year 2011-6-30
2010-12-31 year accruing
Oil to gas project 14,790,696.15 - - 14,790,696.15
2 - 1 - 64
2 - 1 - 65
13. Intangible assets
Unit: RMB
Increase of this Decrease of this
Items 2010-12-31 2011-6-30
year year
I. Total book original value 95,836,143.29 - - 95,836,143.29
Including: land use right 95,600,235.88 - - 95,600,235.88
Software 235,907.41 - - 235,907.41
II. Total accumulated
26,484,148.07 1,493,104.50 - 27,977,252.57
amortization
Including: land use right 26,274,255.40 1,475,225.58 - 27,749,480.98
Software 209,892.67 17,878.92 - 227,771.59
III. Total net value of
69,351,995.22 67,858,890.72
Intangible assets
Including: land use right (Note
69,325,980.48 67,850,754.90
5)
Software 26,014.74 8,135.82
IV. Total provision for
5,115,063.71 - - 5,115,063.71
devaluation
Including: land use right 5,115,063.71 - - 5,115,063.71
Software - - - -
V. Total book value of
64,236,931.51 - 62,743,827.01
intangible assets
Including: land use right 64,210,916.77 - 62,735,691.19
Software 26,014.74 - - 8,135.82
14. Long-term expense prepaid
Unit: RMB
Increase Amortization Other
Item 2010-12-31- amount of this amount of this decrease 2011-6-30
year year amount
Improvements expenses of fixed
273,212.64 - 113,057.34 - 160,155.30
assets from operating lease
15. Deferred income tax assets
Unit: RMB
Items 2011-6-30 2010-12-31
Deferred income tax assets:
Provision for bad debts of accounts receivable 983,843.73 983,843.73
Other provision for bad debts of accounts receivable 1,012,702.11 1,012,702.11
Provision for inventory devaluation 749,081.41 749,081.41
Staff salary payable 1,014,310.56 1,014,310.56
Provision for devaluation of long-term equity
625,000.00 625,000.00
investment
2 - 1 - 66
Other 239,467.33 239,467.33
Total 4,624,405.14 4,624,405.14
16. Particulars about provision for assets devaluation
Unit: RMB
Increase of this Decrease of this year
Items 2010-12-31 2011-6-30
year Rewind Resellers
I. Provision for bad debts 34,896,098.38 - - - 34,896,098.38
II. Provision for inventory
65,924,126.88 - - 2,720,486.10 63,203,640.78
devaluation
III. Provision for devaluation
2,500,000.00 - - - 2,500,000.00
of long-term equity investment
IV. Provision for fixed assets
32,981,137.38 - - - 32,981,137.38
devaluation
V. Provision for projects in
14,790,696.15 - - - 14,790,696.15
construction
VI. Provision for intangible
5,115,063.71 - - - 5,115,063.71
assets devaluation
VII. Other devaluation
1,633,199.83 - - - 1,633,199.83
provision
Total 157,840,322.33 - - 2,720,486.10 155,119,836.23
17. Short-term loan
Unit: RMB
Items 2011-6-30 2010-12-31
Pledge loan 937,000,000.00 700,000,000.00
Credit loan 2,350,500,000.00 2,412,400,000.00
Total 3,287,500,000.00 3,112,400,000.00
18. Notes payable
Unit: RMB
Category 2011-6-30 2010-12-31
Bank acceptance bill 38,049,000.00 -
Period-end notes payable increased by 100% over year-begin mainly due to bank acceptance drafts increased
of this period.
19. Accounts payable
(1) Particulars about accounts payable is as follow:
Unit: RMB
Items 2011-6-30 2010-12-31
CNOOC Gas & Power Group Co., Ltd. 215,981,341.93 41,806,080.04
Shenzhen Nangang Power Project Co., Ltd 5,455,302.00 9,160,098.52
2 - 1 - 67
Zhanjiang Hengyuan Transport Co., Ltd 4,546,077.54 1,502,327.83
Shenzhen Xishun Industry Transport Co., Ltd 1,186,177.69 141,178.41
Thermal Equipment Co., Ltd. Wuxi family 1,162,469.80 1,362,469.80
Huasheng Filters (Shenzhen) Co., Ltd. 493,800.00 680,680.33
Langkun Mechanical and Electrical Co., Ltd. Shenzhen 1,836,000.00 -
Xinhui Electric Control Equipment Factory Co., Ltd. in
1,388,000.00 -
Jiangmen City
Fushun Huyou Energy Equipment Factory 1,253,000.00 -
Guangzhou Star River Electronics Technology Co., Ltd. 1,049,650.00 -
Other 9,337,273.52 6,462,603.68
Total 243,689,092.48 61,115,438.61
(2) Accounts payable in this reporting period exclude payments for shareholders whose 5% (including 5%)
voting right equity was held by the Company.
(3) There exists no notes payable with above 1 year account age in the group.
(4) Accounts payable at the end of reporting period increased by 298.74% compared to the one at year-begin,
mainly due to increased natural gas fuel accounts payable.
20. Accounts received in advance
(1) Particulars about accounts received in advance
Unit: RMB
Item 2011-6-30 2010-12-31
Project accounts received in advance 422,000.00 24,210,498.66
Transfer amount for unit capacity received in advance 14,586,000.00 14,586,000.00
sale of fuel oil received in advance 8,082,662.53 477,842.60
Total 23,090,662.53 39,274,341.26
(2) Accounts received in advance in this reporting period exclude payments from shareholders whose 5%
(including 5%) voting right equity was held by the Company.
(3) Accounts received in advance at reporting period-end decreased by 41.21% compared to the one at
year-begin, mainly due to decreased projects accounts.
21. Staff salary payable
Unit: RMB
Items 2010-12-31 Increase of this year Decrease of this year 2011-6-30
I. Salary, bonus, grants and
35,136,058.44 45,822,079.98 55,863,123.44 25,095,014.98
subsidies
II. Welfare fees for staffs - - - -
III. Social insurance
795,465.82 4,352,109.56 4,044,925.41 1,102,649.97
premium
Including: medical
126,913.93 1,017,286.24 991,345.38 152,854.79
insurance
Old-age insurance 570,135.63 3,195,336.85 2,945,692.44 819,780.04
Unemployment insurance 36,930.79 49,084.29 41,868.97 44,146.11
Work injury insurance 59,996.94 80,141.63 57,603.64 82,534.93
2 - 1 - 68
Maternity insurance 1,488.53 10,260.55 8,414.98 3,334.10
IV. Housing fund 1,828,835.46 1,566,872.85 2,509,119.60 886,588.71
VI. Union funds and
employee education 1,715,337.35 1,070,903.32 802,359.43 1,983,881.24
expenses
VI. Annuity 5,926,920.26 272,740.48 3,880,226.74 2,319,434.00
VII. Others 30,333.37 3,200.00 26,887.66 6,645.71
Total 45,432,950.70 53,087,906.19 67,126,642.28 31,394,214.61
Period-end salary payable decreased by 30.9% over year-begin mainly due to salaries accrued in previous
years had been paid.
22. Tax payable
Unit: RMB
Items 2011-6-30 2010-12-31
Value-added tax -486,359,771.70 -516,271,620.82
Operating tax 991,824.60 2,038,956.43
Corporate Income Tax -4,099,276.12 8,069,776.38
Personal Income Tax 2,917,087.72 1,646,774.92
Land use fees 1,107,682.34 1,137,583.80
Real Estate Tax 1,473,605.31 1,770,165.58
Others 439,934.50 414,945.62
Total -483,528,913.35 -501,193,418.09
23. Interest payable
Unit: RMB
Item 2011-6-30 2010-12-31
Long-term loan interest with principal of installed
- 204,536.00
interest payment and due repayment of seed capital
Interest payable of short-term loan 64,122,312.85 59,143,503.27
Total 64,122,312.85 59,348,039.27
24 Other accounts payable
(1). Particulars about other accounts payable:
Unit: RMB
Item 2011-6-30 2010-12-31
Zhongshan Xingzhong Group Co., Ltd.(“Xingzhong
182,152,108.65 182,152,108.65
Group’)
Zhongshan Finance Bureau 24,321,200.00 24,321,200.00
Project expense 11,636,542.90 15,750,790.11
Temporary option contract amount 13,905,656.99 13,905,656.99
Insurance premium 4,495,703.06 7,384,578.88
Shenzhen South Harbor Power Engineering Co., Ltd. - 6,417,095.00
2 - 1 - 69
Grants for Board of Directors - 2,928,060.85
Nanjing South Harbor Power Equipment Installation
1,806,600.00 2,719,200.00
Co., Ltd.
Hangzhou Boiler Plant Engineering Materials Co., Ltd. 2,564,600.00 2,486,189.74
Shenzhen Custom - 2,200,000.00
Wuxi Shijia Heat Energy Equipment Co., Ltd. - 1,088,000.00
Others 50,173,888.63 27,415,767.12
Total 291,056,300.23 288,768,647.34
(2) Condition of balance of other accounts payable in this reporting period of units which held 5% (including
5%) voting right equity of the Company
25. Non-current liabilities due within one year
(1) Particulars about non-current liabilities due within one year:
Unit: RMB
Items 2011-6-30 2010-12-31
Non-current liabilities due within 1 year 200,000,000.00 50,000,000.00
(2) Particulars about long-term loan due within one year:
Unit: RMB
Items 2011-6-30 2010-12-31
Guarantee loans 200,000,000.00 50,000,000.00
(3) The top five long-term loans due within one year
Unit: RMB
Loan
Loan start date
Loan unit termination date Currency Rate (%) 2011-6-30
HXB Shenzhen Branch 2009-09-01 2011-09-01 RMB 5.76 50,000,000.00
HXB Shenzhen Branch 2010-04-01 2012-04-01 RMB 5.76 50,000,000.00
coterminous rate down
HXB Shenzhen Branch 2010-04-01 2012-04-01 RMB 100,000,000.00
by 10%
(4) Period-end non-current liabilities due within 1 year increased by 300% over year-begin mainly due to
long-term loan due within 1 year increased.
26. Long-term loan
(1) Category of long-term loan
Unit: RMB
Items 2011-6-30 2010-12-31
Pledge loan 36,000,000.00 186,000,000.00
(2) Top 5 units with largest long-term loan
2 - 1 - 70
Unit: RMB
Commencement date of
Ending date of loan
Credit units loan Currency Rate (%) 2011-6-30
China Merchants
Bank, Jingtian Branch 2009-11-6 2017-9-20 RMB 5.35 36,000,000.00
in Shenzhen
(3) Reporting period-end long-term loan decreased by 80.65% over year-begin mainly due to long-term loan
was transferred to long-term liabilities due within 1 year.
27. Other non-current liabilities
Unit: RMB
Items 2011-6-30 2010-12-31
Treasury subsidies for sludge drying 5,100,000.00 5,100,000.00
Suppor fund of recycling economy for sludge drying 250,000.00 250,000.00
Total 5,350,000.00 5,350,000.00
28. Share capital
Unit: RMB
Change of this year Amount at
Items Amount at period-begin
Bonus issue Others Subtotal period-end
The first half year of 2011:
I. Shares with selling
restriction
1. Holding shares of State 1 - - - - -
2. Holding shares of
- - - - -
State-owned legal person
3. Other domestic shares 12,993.00 - - - 12,993.00
4. Shares with foreign
- - - - -
ownership
Total shares with selling
12,993.00 - - - 12,993.00
restriction
II. Shares without selling
restriction
1. RMB ordinary shares 338,895,157.00 - - - 338,895,157.00
2. Domestically listed
263,854,446.00 - - - 263,854,446.00
foreign shares
3. Overseas listed foreign
- - - - -
shares
4. Others - - - - -
Total shares without selling
602,749,603.00 - - - 602,749,603.00
restriction
III. Total shares 602,762,596.00 - - - 602,762,596.00
2 - 1 - 71
Year 2010:
I. Shares with selling
restriction
1. Holding shares of State 1 - - - - -
2. Holding shares of
- - - - -
State-owned legal person
3. Other domestic shares 12,993.00 - - - 12,993.00
4. Shares with foreign
- - - - -
ownership
Total shares with selling
12,993.00 - - - 12,993.00
restriction
II. Shares without selling
restriction
3. RMB ordinary shares 338,895,157.00 - - - 338,895,157.00
4. Domestically listed
263,854,446.00 - - - 263,854,446.00
foreign shares
3. Overseas listed foreign
- - - - -
shares
4. Others - - - - -
Total shares without selling
602,749,603.00 - - - 602,749,603.00
restriction
III. Total shares 602,762,596.00 - - - 602,762,596.00
29. Capital Surplus
Unit: RMB
Amount of Decrease of this Amount of
Items Increase of this year
year-begin year period-end
The first half year of 2011:
Capital premium 233,998,444.00 - - 233,998,444.00
Including: invested capital by
215,487,650.42 - - 215,487,650.42
investors
Difference arising from
purchasing equity of minority 18,510,793.58 - - 18,510,793.58
shareholders
Other capital surplus 129,631,483.51 - - 129,631,483.51
Including: transferring from
129,631,483.51 - - 129,631,483.51
capital surplus in original system
Total 363,629,927.51 - - 363,629,927.51
Year 2010:
Capital premium 233,998,444.00 - - 233,998,444.00
Including: invested capital by
215,487,650.42 - - 215,487,650.42
investors
Difference arising from
18,510,793.58 - - 18,510,793.58
purchasing equity of minority
2 - 1 - 72
shareholders
Other capital surplus 129,631,483.51 - - 129,631,483.51
Including: transferring from
129,631,483.51 - - 129,631,483.51
capital surplus in original system
Total 363,629,927.51 - - 363,629,927.51
30. Surplus reserves Unit: RMB
Decrease of this Amount of
Items Amount of year-begin Increase of this year
year period-end
The first half year of 2011:
Legal surplus reserve 310,158,957.87 - - 310,158,957.87
Discretionary surplus reserve 22,749,439.73 - - 22,749,439.73
Total 332,908,397.60 - - 332,908,397.60
Year 2010:
Legal surplus reserve 310,158,957.87 - - 310,158,957.87
Discretionary surplus reserve 22,749,439.73 - - 22,749,439.73
Total 332,908,397.60 - - 332,908,397.60
31. Retained profit
Unit: RMB
Items Amount
The first half year of 2011:
Undistributed profit at year-begin 436,541,567.35
Add: net profit attributable to shareholders of parent company -84,855,867.31
Undistributed profit at period-end 351,685,700.04
Year 2010:
Before adjustment: retained profit at end of last year 547,986,755.29
Adjustment: total retained profit at year-begin(Note 1) 3,193,490.26
After adjustmet: retained profit at year-begin 551,180,245.55
Add: net profit attributable to shareholders of parent company -114,638,678.20
Undistributed profit at period-end 436,541,567.35
32. Operating income, operating cost
(1) Operating income
Unit: RMB
Items Jan-Jun of 2011 Jan-Jun of 2010
Main business income 1,029,131,736.95 701,624,196.24
Other business income 114,281,873.83 1,235,478.37
Operating cost 1,635,583,031.68 1,003,249,405.69
(2) Main business (sub-industry)
Unit: RMB
2 - 1 - 73
Industry Jan-Jun of 2011 Jan-Jun of 2011
Operating income Operating cost Operating income Operating cost
Energy Industry 975,927,223.18 1,469,258,727.45 695,703,196.24 998,624,839.08
Engineering labors and
25,285,653.00 22,570,289.17 5,921,000.00 3,808,437.37
services
Other income 27,918,860.77 35,468,879.49 - -
Total 1,029,131,736.95 1,527,297,896.11 701,624,196.24 1,002,433,276.45
(3) Main business (sub-products)
Unit: RMB
Jan-Jun of 2011 Jan-Jun of 2010
Industry
Operating income Operating cost Operating income Operating cost
Electricity sales 971,615,982.72 1,462,635,685.41 690,711,341.40 991,958,211.09
Heat sales 4,311,240.46 6,623,042.04 4,991,854.84 6,666,627.99
Sale of fuel oil 26,688,890.47 23,005,762.19 - -
Engineering labors and
25,285,653.00 22,570,289.17 5,921,000.00 3,808,437.37
services
Other income 1,229,970.30 12,463,117.30
Total 1,029,131,736.95 1,527,297,896.11 701,624,196.24 1,002,433,276.45
(5) Condition of operating income of top 5 clients
Unit: RMB
Proportion in total operating
Clients Operating income
income (%)
Guangdong Power Grid Corporation 973,344,986.88 85.13%
Shenzhen Xiyang Petrochemical Co., Ltd. 49,664,804.55 4.34%
Guangdong Yongli Company 67,843,298.77 5.93%
Sundram Company 25,285,653.00 2.21%
Zhongshan Zhenyang Company 9,348,615.38 0.82%
Total 1,125,487,358.58 98.43%
33. Operating tax and addition
Unit: RMB
Items Jan-Jun of 2011 Jan-Jun of 2010
Operating tax 2,093,553.47 2,545,108.31
Urban maintenance and construction tax 1,204,934.89 340,332.20
Others 551,867.26 86,029.71
total 3,850,355.62 2,971,470.22
34. Management expenses
Unit: RMB
Items Jan. to Jun. of 2011 Jan. to Jun. of 2010
2 - 1 - 74
Salary 18,689,743.50 16,921,273.61
Taxes 4,535,903.08 4,351,712.66
Leasing expenses 3,361,253.08 3,237,755.35
Entertainment expense 2,441,391.68 2,431,155.90
Expenses for agency appointment 2,395,745.99 2,302,153.81
Vehicles expenses 1,931,408.77 1,862,307.77
Expenses from the Board 3,969,555.99 1,730,092.90
Housing accumulation fund 513,495.80 1,617,843.60
Depreciation expense 1,141,879.78 1,336,059.97
Amortization of intangible assets 1,137,209.46 677,569.49
Verification expense for projects 56,749.00 0.00
Enterprise annuity 103,020.48 885,559.46
Environmental expense 948,713.70 862,015.66
Sundry expenses 814,932.34 769,846.25
Expenses for enterprise culture 858,945.87 719,490.80
Property expense 790,048.00 677,202.00
Office expenses 193,231.74 135,959.85
Charge of endowment insurance 841,411.77 1,008,947.21
Communication charge 375,862.55 391,280.16
Business traveling charge 443,283.72 309,196.57
Stock charge 308,687.40 161,287.80
Medical insurance 317,577.98 318,889.26
Labor union expense 357,837.30 369,734.75
Educational charge for employee 172,643.60 138,124.80
Long-term expense for amortized 100,089.54 105,900.48
Inventory loss -90,552.07 106,997.11
Other 3,889,429.71 3,594,918.47
Total 50,599,499.76 47,023,275.69
35. Financial expenses
Unit: RMB
Items Jan. to Jun. of 2011 Jan. to Jun. of 2010
Interest expenditure 86,123,937.29 59,807,556.07
Minus: capitalized interest expenses 6,772.10 8,646.14
Minus: interest income 1,622,061.46 1,918,004.42
Exchange differential -49,893.26 -8,161.70
Other 5,466,647.13 1,367,249.85
Total 89,911,857.60 59,239,993.66
36. Investment income
(1) Particulars about investment income
Unit: RMB
Items Jan-Jun of 2011 Jan-Jun of 2010
2 - 1 - 75
Long-term equity investment income calculated by cost
- -
method
Long-term equity investment income calculated by
-39,857,497.48 -32,231,888.28
equity method
Total -39,857,497.48 -32,231,888.28
(2) Long-term equity investment income calculated by equity method
Unit: RMB
Jan-Jun of 2011 Jan-Jun of 2010
Invested units
Jiangxi Xinchang Company -39,857,497.48 -32,231,888.28
37. Non-operating income
(1) Particulars about non-operating income
Unit: RMB
Items Jan-Jun of 2011 Jan-Jun of 2010
Governmental subsidies 516,078,289.40 139,518,326.56
Refund on value added tax of natural gas
70,689,758.96 31,621,243.63
import
Refund on customs fines 2,200,000.00 -
Disposal of waste and old materials 314,687.82 -
Other 31,947.00 280,075.79
Total 589,314,683.18 171,419,645.98
(2) Particulars about governmental subsidies
Unit: RMB
Items Jan-Jun of 2011 Jan-Jun of 2010
Income from fuel subsidies 236,819,900.00 -
Subsidies income of fuel processing fee 279,258,389.40 139,518,326.56
Total 516,078,289.40 139,518,326.56
38. Non-operating expense
Unit: RMB
Items Jan-Jun of 2011 Jan-Jun of 2010
Gains and loss of disposal of fixed assets 162,698.07 1,840.00
Donation from the day of Helping the poor
100,000.00 -
and caring for the needy
Others 34,626.41 30,020.00
Total 297,324.48 31,860.00
39． Calculation process of basic income per share and diluted income per share
Calculating basic income per share, the profit attributable to shareholders of parent company:
Unit: RMB
Items Jan-Jun of 2011 Jan-Jun of 2010
2 - 1 - 76
Current net profit attributable to shareholders of
parent company -84,855,867.31 -255,073,535.78
Including: net profit attributable to constant
operation -84,855,867.31 -255,073,535.78
Net profit attributable to ending operation - -
Calculating basic income per share, denominator is weighted average number of general shares externally
issued. The calculation process is as follow:
Unit: share
Items Jan. to Jun. of 2011 Jan. to Jun. of 2010
Share amounts of externally issued general
shares at year-begin 602,762,596.00 602,762,596.00
Add: weight amounts of general shares issued in
this year - -
Less: weight amount of general shares
repurchased - -
Weight amount of general shares externally
issued at period-end 602,762,596.00 602,762,596.00
Income per share
Unit: RMB
Items Jan-Jun of 2011 Jan-Jun of 2010
Calculating according to net profit attributable to
shareholders of parent company:
Basic income per share -0.14 -0.42
Diluted income per share Not applicable Not applicable
Calculating according to net profit of constant operation
attributable to shareholders of parent company:
Basic income per share -0.14 -0.42
Diluted income per share Not applicable Not applicable
Calculating according to net profit of ending operation
attributable to shareholders of parent company:
Basic income per share Not applicable Not applicable
Diluted income per share Not applicable Not applicable
40. Statement on items of cash flow sheet
(1) Other received cash related to operating activities
Unit: RMB
Items Jan-Jun of 2011 Jan-Jun of 2010
Received import tax refund of natural gas 70,689,758.96 31,621,243.63
Others 4,852,901.36 3,898,352.25
Total 75,542,660.32 35,519,595.88
(2) Other payments of cash related to operating activities
2 - 1 - 77
Unit: RMB
Items Jan-Jun of 2011 Jan-Jun of 2010
Expense for engaging intermediaries 1,918,079.19 2,342,529.31
Expense for Board of Directors 3,945,555.99 2,855,342.30
Lease fees 4,054,517.70 3,032,322.00
Communication fees 2,525,925.68 2,418,347.60
Fleet costs 2,143,162.13 2,047,506.44
Corporation culture costs 845,956.87 706,633.80
Telecommunication costs 451,665.16 436,080.02
Environment costs 159,143.92 4,920,055.50
Early expense of recycle economy 772,800.67 529,017.06
Payment for disposal tax of terminal depot by
- 4,083,659.00
agent buyer
Payment for loans of Finance Bureau by
- 7,772,394.67
Shenzhong Development
Compensation for settlement of staffs of
- 1,567,958.00
Zhongshan Guangzhong
Supplementary pension 3,308,907.73 -
Others 12,599,507.08 11,089,103.51
Total 32,725,222.12 43,800,949.21
41. Supplementary information of cash flow sheet
(1) Supplementary information of cash flow sheet
Unit: RMB
Supplementary information Jan-Jun of 2011 Jan-Jun of 2010
I. Operating activities cash flow transferred from net profit:
Net profit -91,352,820.44 -271,621,049.64
Add: provision for assets devaluation - -
Fixed assets depreciation 103,867,776.77 86,122,666.82
Intangible assets amortization 1,493,104.50 1,382,426.86
Amortization of long-term prepaid accounts 113,057.34 105,900.48
Loss (gains) of disposal of fixed assets, intangible assets and other
346,634.82 -1,630.00
long-term assets
Loss from scrap of fixed assets - -
Finance expense (income)) 89,065,557.60 81,955,864.98
Investment loss (income) 39,857,497.48 32,231,888.28
Decrease of deferred income tax assets (increase) -
Decrease of inventory (increase) 100,082,240.91 19,925,834.63
Decrease of operating accounts receivable (increase) -420,110,752.49 -77,533,696.33
Decrease of operating accounts payable (increase) 215,126,670.26 60,089,551.69
Others - -
Net amount of cash flow arising from operating activities 38,488,966.75 -67,342,242.23
II. Significant investment and financing activities un-related to
2 - 1 - 78
income and expense of cash:
Debts transferring to assets -
Convertible bonds due within 1 year -
Fixed assets financed by leasing -
III. Net change of cash and cash equivalent:
Period-end balance of cash and cash equivalent 629,580,595.19 382,271,002.22
Less: year-begin balance of cash and cash equivalent 591,386,814.04 356,362,100.63
Net increase amount of cash and cash equivalent 38,193,781.15 25,908,901.59
(2) Constitution of cash and cash equivalent
Unit: RMB
Items 2011-6-30 2010-12-31
I. Cash 629,580,595.19 382,271,002.22
Including: inventory cash 301,367.43 280,686.83
Bank deposit which can be used for payment at any time 510,588,045.13 281,495,811.39
Other currency capital which can be used for payment at any time 118,691,182.63 494,504.00
II. Year-end balance of cash and cash equivalent 629,580,595.19 382,271,002.22
(VI)Related party and related transaction
1. Parent company of the Company
Share holding proportion of any shareholder of the Company didn't reach 50%, and couldn't form a holding
relationship of the Company through any methods. The Company has no parent company.
2. Subsidiaries of the Company
Detail of subsidiaries sees in Note (IV).
3. Joint venture of the Company
Details of joint ventures of the Company see in Note (V).
4. Other related parties of the Company
Other related parties name Relationship between the Company Organization code
SHENZHEN GUANGJU INVESTMENT CO., LTD （Guangju Shareholders have major influence on the
Holding for short） Company 192170273
Shareholders have major influence on the Inapplicable
BNP P P/PANDA INVESTMENT COMPANY LIMITED Company
Shareholders have major influence on the Inapplicable
HONGKONG NAM HOI (INTERNATIONAL) LTD Company
STATE GRID SHENZHEN ENERGY DEVELOPMENT Shareholders have major influence on the
(GROUP) CO., LTD. (State Grid for short) Company 71529249X
Shareholders have major influence on the
Energy Group
Company 192189185
Dongguan Weimei Pottery Industrial Park Co., Ltd. (Weimei
Minority shareholders of the subsidiaries
Pottery for short) 72919361X
2 - 1 - 79
Xingzhong Group Minority shareholders of the subsidiaries 733112675
Minority shareholders of the subsidiaries
Guanzhong Investment Company before Sep. 30 of 2009 733096986
Shenzhen Mawan Power Co., Ltd.(Mawan Power for short) Subsidiaries of Energy Group 618816706
Shenzhen Moon Bay Oil Port Co., Ltd. ("Moon Bay Oil
Company") Subsidiary of energy group 618849428
Shenzhen Energy Group Co., Ltd. ("Energy Company") Subsidiary of energy group 19224115-8
Directors of the Company and other senior executives Key management staff Inapplicable
5. Merger and related transaction of parent company
Merger
(1) Related transaction of commodities purchase, labor service received/provided
Unit: RMB
Jan.-June 2011 Jan.-June 2010
Price setting principal
and strategy procedures
Related Transaction Transaction Proportion Proportion
parties type content Amount in amount of Amount in amount of
similar similar
transaction transaction
(%) (%)
Reference to the market
Mawan Labor Usage fee
price or based on the
Power service of oil - - 231,126.66 100%
price from executives
Company received pipeline
department
Reference to the market
Yueliang Labor
Usage fee price or based on the
Bay Fuel service - - 876,663.67 100%
of pier price from executives
Company received
department
(2)Offering capital of related parties
Unit: RMB
Amount of Commencement
Related parties Maturity Date Balance at 30 June 2011 Note
offering date
Borrowing
Xinzhong Group 125,316,816.85 2008.11.19 2010.12.31 125,316,816.85
Xinzhong Group 23,750,000.00 2009.10.15 2010.12.31 23,750,000.00 Due,
Xinzhong Group 16,250,000.00 2009.03.27 2010.12.31 16,250,000.00 theextension
Xinzhong Group 14,335,291.80 2008.12.29 2010.12.31 14,335,291.80 is in process
Xinzhong Group 2,500,000.00 2009.03.27 2010.12.31 2,500,000.00
(3) Account receivable of related parties
Unit: RMB
Items Related parties Balance of Jun. 30 of Balance of Dec. 31 of
2 - 1 - 80
2011 2010
Other accounts payable Xingzhong Group 182,152,108.65 182,152,108.65
Accounts received in advance Energy Holding 14,586,000.00 14,586,000.00
Interest payable Xingzhong Group 37,427,297.93 32,106,381.85
Parent company
(1)Related transaction of commodities purchase, labor service received/provided
Unit: RMB
Jan. to Jun. of 2011 Jan. to Jun. of 2010
Proportion in Proportion
Transaction amount of in amount
Related parties
content Price setting Amount similar Amount of similar
principal and transaction transaction
strategy procedures (%) (%)
Reference to the
Xiefu Fuel market price or
Supply based on the price - - 11,185,594.06 9.38%
Company from executives
Fuel purchase department
Reference to the
Xiefu Fuel market price or
Supply Storage and based on the price 3,658,557.18 100.00% 10,155,584.63 100%
Company transportation from executives
fee department
Reference to the
market price or
New Power
based on the price 55,592,816.04 36.90% 253,160,447.98 100%
Company
from executives
Fuel purchase department
Reference to the
market price or
based on the price - - 231,126.66 100%
Mawan Power Usage of oil from executives
Company pipeline department
Reference to the
market price or
based on the price - - 876,663.67 100%
Yueliang Bay Usage fee of from executives
Fuel Company pier department
Reference to the
market price or
1,340,495.71 100% 992,918.40 100%
New Power Usage fee of based on the price
Company Smoke& Gas from executives
2 - 1 - 81
department
Reference to the
market price or
Labor service based on the price 8,670,931.00 100% 13,026,305.00 100%
New Power fee of machinery from executives
Company units’ entrusted department
Statement of commodity selling/ labor service provided
Unit: RMB
Jan. to Jun. of 2011 Jan. to Jun. of 2010
Proportion
Proportion in
in the
the amount of
Pricing methods and amount of
Amount similar Amount
Contents of decision making similar
transactions
related procedures of related transactions
(%)
Related parties transactions transactions (%)
Accord to the price released
New Power Co., Ltd Use-charge of smoke by the authority or refer to 1,270,272.00 100% 992,918.40 100%
the market price
Accord to the price released
Entrust labor for unit
New Power Co., Ltd by the authority or refer to 8,670,931.00 100% 13,026,305.00 100%
operation
the market price
Accord to the price released
New Power Co., Ltd Sale s of heat power by the authority or refer to 1,412,094.17 100% 72,815.19 100%
the market price
Accord to the price released
Weimei Power
Sales of materials by the authority or refer to 289,524.05 100% 632,788.47 100%
Co., Ltd
the market price
(2) Related entrusted
Unit: RMB
Name of Name of Date of Due date recognized basis Trust income
consigner entrusted Transaction type Asset trust beginning of entrusted confirmed at
income the period
Power Calculated based
generation on the RMB
New Trusteeship income unit of 2011.01.01 2011.6.30 0.025/kwh of the 8,670,931.00
Power The 2#,10# and generation
Company Company 11# volume
Power Calculated based
generation on the RMB
New Trusteeship income unit of 2010.01.01 2010.6.30 0.025/kwh of the 13,026,305.00
Power The 2#,10# and generation
Company Company 11# volume
2 - 1 - 82
Power Allocated based
generation on electrical
New Cost-allocation unit of 2011.01.01 2011.6.30 energy of new
8,320,523.17
Power The 2#,10# and power machine
Company Company 11# set
Power Allocated based
generation on electrical
New Cost-allocation unit of 2010.01.01 2010.6.30 energy of new
18,775,700.38
Power The 2#,10# and power machine
Company Company 11# set
Power Allocated based
generation on electrical
New Expenses-allocation unit of 2011.01.01 2011.6.30 energy of new
9,541,067.55
Power The 2#,10# and power machine
Company Company 11# set
Power Allocated based
generation on electrical
New Expenses-allocation unit of 2010.01.01 2010.6.30 energy of new
19,177,994.38
Power The 2#,10# and power machine
Company Company 11# set
(3) Related guarantee
Guarantee provided
Unit: RMB
Assurance Guarantee Impletion of
Guarantee received Guarantee amount Guarantee due date
Provider beginning date guarantee or not
The Company Weimei Power Co., Ltd 60,000,000.00 2010.02.01 2012.02.01 No
The Company Weimei Power Co., Ltd 40,000,000.00 2010.04.01 2012.04.01 No
The Company Weimei Power Co., Ltd 120,000,000.00 2011.01.26 2012.01.26 No
The Company Weimei Power Co., Ltd 80,000,000.00 2011.02.12 2012.02.12 No
The Company Weimei Power Co., Ltd 10,000,000.00 2011.02.14 2012.02.12 No
The Company Weimei Power Co., Ltd 90,000,000.00 2011.02.22 2012.02.12 No
The Company Weimei Power Co., Ltd 80,000,000.00 2011.01.14 2011.07.14 No
The Company Weimei Power Co., Ltd 100,000,000.00 2010.12.29 2011.12.29 No
The Company Weimei Power Co., Ltd 20,000,000.00 2011.01.10 2012.01.10 No
The Company Zhongshan Power Co., No
100,000,000.00 2011.01.19 2012.01.19
Ltd
The Company Zhongshan Power Co., No
50,000,000.00 2011.01.24 2012.01.19
Ltd
The Company Zhongshan Power Co., No
50,000,000.00 2011.01.25 2012.01.19
Ltd
The Company Zhongshan Power Co., No
100,000,000.00 2011.01.21 2012.01.21
Ltd
The Company Zhongshan Power Co., 50,000,000.00 2009.09.01 2011.09.01 No
2 - 1 - 83
Ltd
The Company Zhongshan Power Co., No
50,000,000.00 2010.04.01 2012.04.01
Ltd
The Company Zhongshan Power Co., No
20,000,000.00 2011.04.08 2012.04.08
Ltd
The Company Zhongshan Power Co., No
2,960,000.00 2011.04.14 2011.10.14
Ltd
The Company Zhongshan Power Co., No
3,330,000.00 2011.04.25 2011.10.25
Ltd
The Company Zhongshan Power Co., No
4,760,000.00 2011.05.05 2011.11.05
Ltd
The Company Zhongshan Power Co., No
6,743,000.00 2011.05.11 2011.11.11
Ltd
The Company Zhongshan Power Co., No
4,400,000.00 2011.05.13 2011.11.13
Ltd
The Company Zhongshan Power Co., No
7,128,000.00 2011.05.13 2011.11.13
Ltd
The Company Zhongshan Power Co., No
8,728,000.00 2011.05.13 2011.11.13
Ltd
The Company Zhongshan Power Co., No
5,000,000.00 2010.10.28 2011.10.28
Ltd
The Company Zhongshan Power Co., No
35,000,000.00 2010.11.05 2011.11.05
Ltd
The Company Environmental No
20,000,000.00 2010.08.02 2011.08.02
Protection Co., Ltd
The Company Environmental No
7,000,000.00 2011.03.25 2012.03.25
Protection Co., Ltd
The Company Environmental No
36,000,000.00 2009.11.06 2017.09.20
Protection Co., Ltd
The Company New Power Company 30,000,000.00 2011.06.30 2012.06.30 No
(4) Lending money of related party
Unit: RMB
Amount of Commencement Maturity Balance at
Related parties Note
lending money date Date period-end
Borrowing
Engineering Company 60,000,000.00 2009.11.20 2011.11.17 60,000,000.00 Entrusted loan
Offering
Shenzhong Overdue, in process of
Development 70,040,000.00 2009.10.14 2010.03.31 70,040,000.00 extension
Company
Shenzhong Overdue, in process of
Development 48,750,000.00 2009.04.25 2010.03.31 48,750,000.00 extension
Company
2 - 1 - 84
Shenzhong Overdue, in process of
Development 7,500,000.00 2009.04.05 2010.03.31 7,500,000.00 extension
Company
Shenzhong Overdue, in process of
Development 375,950,450.55 2009.11.18 2010.03.31 375,950,450.55 extension
Company
Shenzhong Overdue, in process of
Development 43,005,307.50 2009.12.28 2010.03.31 43,005,307.50 extension
Company
Shenzhong Overdue, in process of
Development 46,280,000.00 2009.01.01 2009.12.31 46,280,000.00 extension
Company
Entrust the bank to release
Weimei Power the loan to the related
63,080,000.00 2010.07.26 2011.07.26
Company parties and paid on Mar. 30,
2011
Zhongshan Power Overdue, in process of
50,000,000.00 2009.03.25 2010.03.31 50,000,000.00
Company extension
Zhongshan Power Overdue, in process of
40,437,227.87 2008.09.26 2010.03.31 40,437,227.87
Company extension
Zhongshan Power Overdue, in process of
28,000,000.00 2009.01.11 2010.03.31 28,000,000.00
Company extension
Zhongshan Power Overdue, in process of
19,623,969.20 2008.10.30 2010.03.31 19,623,969.20
Company extension
Entrust the bank to release
Zhongshan Power the loan to the related
25,000,000.00 2009.12.24 2010.12.23
Company parties and paid on Jan. 13,
2011
Entrust the bank to release
Zhongshan Power
180,000,000.00 2010.04.14 2012.04.14 180,000,000.00 the loan to the related
Company
parties
Entrust the bank to release
Zhongshan Power the loan to the related
50,000,000.00 2010.06.12 2011.06.12
Company parties and paid on Jun. 12,
2011
Entrust the bank to release
Zhongshan Power
40,000,000.00 2010.09.20 2011.09.19 40,000,000.00 the loan to the related
Company
parties
Entrust the bank to release
Zhongshan Power
35,000,000.00 2010.09.28 2011.09.27 35,000,000.00 the loan to the related
Company
parties
Entrust the bank to release
Zhongshan Power
100,000,000.00 2011.01.18 2011.02.28 the loan to the related
Company
parties and paid on Mar. 23,
2 - 1 - 85
2011
Entrust the bank to release
Zhongshan Power
25,000,000.00 2011.03.02 2012.03.01 25,000,000.00 the loan to the related
Company
parties
Zhongshan Power
25,000,000.00 2011.04.26 2012.04.25 25,000,000.00 Financial assistance
Company
Zhongshan Power
25,000,000.00 2011.04.27 2012.04.25 25,000,000.00 Financial assistance
Company
Zhongshan Power
40,000,000.00 2011.06.02 2012.06.02 40,000,000.00 Financial assistance
Company
Zhongshan Power
50,000,000.00 2011.06.10 2012.06.10 50,000,000.00 Financial assistance
Company
(5) Payment for the use of state funds
Unit: RMB U
Jan-June 2011 Jan-June 2010
Proportion in
Price Proportion in
Transaction Transaction amount of
Related parties setting amount of
type content Amount Amount similar
principal similar
transaction
transaction (%)
(%)
for the use Note
Engineering Interest
of state 1,180,500.00 1.76% 1,127,495.00 4.18%
company expenses
funds
for the use Note
Zhongshan Interest
of state 14,573,326.22 44.32% 8,197,913.80 30.38%
Power Company income
funds
for the use Note
Weimei Power Interest
of state 1,032,217.76 3.14% 1,859,237.50 6.89%
Company income
funds
Shenzhong for the use Note
Interest
Development of state 17,279,288.97 52.54% 15,796,573.00 58.55%
income
Company funds
Note: payment for the use of state funds is calculated according to loan rate of current capital of peer banks.
(6) Account receivable of related parties
Account receivable from related parties
Unit: RMB
Items Related parties 2011-6-30 2010-12-31
Other account receivable Xiefu fuel Supply Company 6,279,375.00 6,280,847.20
Zhongshan Power Company 326,394,031.93 181,927,622.99
Weimei Power Company 8,103,250.17 7,778,446.81
Shenzhong Development
710,337,484.77 693,061,355.80
Company
2 - 1 - 86
Shennan Singapore Company 138,660.87 31,072.34
Xingshengde Company 30,900.01 19,596.65
Dividend receivable New Power Company 597,875,904.41 597,875,904.41
Other current liabilities Zhongshan Power Company 280,000,000.00 329,923,940.43
Weimei Power Company - 63,080,000.00
Account payable to related parties
Unit: RMB
Item Related parties 2011-6-30 2010-12-31
Account received in
14,586,001.00 14,586,001.00
advance Energy Company
Account payable Server Supplying Co., Ltd. 1,829,278.59 849,814.37
Other account payable Server Supplying Co., Ltd. 1,006,921.50 1,030,238.37
New Power Co., Ltd 546,745,402.95 470,222,997.74
Engineering Co., Ltd 116,880.71 115,528.80
Syndisome Company 1,728,383.30 1,768,797.13
Short-term loans Engineering Co., Ltd 60,000,000.00 60,000,000.00
(VII) Contingency
In March 2009, the Company and Just-run Company entered into a Contract Confirmation
(hereafter referred to as “the Confirmation”) with contract numbers of 165723967102.11 and
165723968102.11.
The first confirmation is valid from March 3rd, 2008 to December 31st, 2008, constituted by
three options contracts. When the floating price (that is, the arithmetic average of the closing
settlement prices of light crude future contracts of New York Mercantile Exchange at that
month within every decision validity) is higher than 63.50 U.S. dollars / barrel, the Company
will receive 300,000 U.S. dollars of income per month (200,000 barrels × 1.50 U.S. dollars /
barrel); When the floating price is 62.00-63.50 U.S. dollars / barrel, the Company will obtain
the income of (the floating price -62.00 USD / barrel) × 200,000 barrels per month; when the
floating price is less than 62.00 U.S. dollars / barrel, the company will pay Just-run Company
an amount equivalent to (62.00 U.S. dollars / barrel - the floating price) × 400,000 barrels per
month.
The second confirmation is valid from January 1st, 2009 to October 31st, 2010, constituted by
three options contracts, Just-run Company has a right to choose whether to implement before
18:00 on December 30th, 2009. When the floating price is higher than 66.50 U.S. dollars /
barrel, the Company will receive 340,000 U.S. dollars of income per month (200,000 barrels ×
1.70 U.S. dollars / barrel); when the floating price is 64.80-66.50 U.S. dollars / barrel, the
Company will receive a monthly income of (the floating price -64.80 U.S. dollars / barrel) ×
200,000 barrels; when the floating price is lower than 64.50 U.S. dollars / barrel, the Company
will pay Just-run Company an amount equivalent to (64.50 U.S. dollars / barrel – the floating
price) × 400,000 barrels.
2 - 1 - 87
From Apr.2008 to Oct.2008, based on the above confirmations, Just-run Company pays to the
Company with US$ 2.10 million (equivalent to RMB 14,352,083.46), the Company includes it
into "other payables" item after receives this payment.
On November 6th, 2008, Just-run Company writes to the Company. They deems that the
Company intends to not perform transaction in the notice issued by the Company on October
21st ,2008 and the statement of the meeting held by the Company on October 29th ,2008, which
has constituted a breach of contract, and Just-run Company announces the termination of the
transaction. The Company replies Just-run Company that the company has never made any
statement not intend to continue to perform transactions, and deems that Jierun Company's
unilateral termination of the contract and refuse of paying the A/C payable under the first
confirmation as of October, 2008 has constituted a breach of contract, so the Company
announces the termination of the transaction. Although both sides terminate the transaction
confirmation for different reasons, there are no differences about the termination reality of
confirmation and transactions. After the transaction terminated, Just-run Company sends a
letter to request the Company to compensate for the transaction termination loss, while sends
another letter to express the hope to resolve the disputes by the commercial way. The company
replies Just-run Company that the Company does not accept claims for loss compensations,
while sends a separate letter to agree to peace talks. Then both sides do several rounds of
consultations and negotiations, but no agreement has reached. On November 27th, 2009, the
Company receives a letter of Allen & Overy LLP, which describes above matters and requires
the Company to compensate Just-run with a total of US$79,962,943.00 and the interests of
US$3,736,958.66 as of November 27th, 2009. The Company replies on January 25th, 2010,
which shows that the Company did not accept claims for loss compensation. On Mar. 31 of
2011, Just-run Company sent another letter to the Company which claimed that they are willing
to coordinate with the Company continuously as for USD 79,962,943.00 we owed them and
interests from the day of Nov. 6 of 2008, and invated the Company to raise up suggestion on
this matter, meanwhile Just-run Company stressed to remain all the rights on this matter. The
Company replied them with a letter on Apr. 6 of 2011 which showed we didn’t accept
requirements from Just-run Company about compensation for loss, and agreed to answer their
invitation and negotiate based on equality without influence on rights of both parties. If senior
management team failed to agreement, both parties may solve the debate in judicial way. The
Board of Directors of the Company deems:
(1) Two confirmations and the transactions have been terminated by both parties;
(2) There are many uncertainties for the progress of this matter, so it is not possible to estimate
the future resolving methods and results at this stage;
(3) As the final result cannot be estimated reasonable and reliable, the Company should not
confirm it as accrued liabilities in the first half of 2011 financial statements.
The Board of Directors of the Company will promptly review the relevant accounting
operation according to the progress of the above matters.
(VIII) Commitment
1. Capitalization commitment
Unit: RMB
Item 2011-6-30 2010-12-31
Signed capital expenditure commitment which
was still not recognized in financial statements
2 - 1 - 88
-Construction commitment of long-term assets 30,286,322.68 22,732,380.01
-External investment commitment - -
Total 30,286,322.68 22,732,381.00
(2) Commitment on operating lease
Till the balance sheet day, the condition of irrevocable operating lease contract the Group externally signed
is as follow:
Unit: RMB
Item 2011-6-30 2010-12-31
Minimum lease payments of irrevocable
operating lease:
The first year after balance sheet day 6,155,280.29 4,394,861.29
The second year after balance sheet day 1,376,850.00 1,376,850.00
The third year after balance sheet day 1,389,536.63 1,389,536.63
Subsequent years 66,437,026.43 66,616,466.43
Total 75,358,693.34 73,777,714.35
2 - 1 - 89
(IX) Segment report
According to the internal organization structural, management requirements and internal reporting systems of the Company, the operation
business of the group is classified into 5 reporting segments, i.e. power and heat supply, fuel trade, sludge drying, real estate development and
other relevant business. Management of the Company regularly evaluates the operation results of the reporting segments, so as to decide to
distribute resources to them and evaluate their achievements.
The segment report information is disclosed according to the accounting policies and measuring standards adopted by all segments when
reporting to the management and such measuring bases are kept consistent with the accounting and measuring bases upon preparation of the
financial statements.
Unit: RMB
Power and heat supply Fuel trade Real estate development Sludge drying Other related business Inter-segment offset Total
Items
Current Current Current Last Current
Current year Last year year Last year year Last year year year year Last year Current year Last year Current year Last year
Business
income
Foreign
trade 1,085,765,305 697,288,30 32,261,352. -349,627.0 25,285,653. 5,921,00 1,143,413,61 702,859,674.
income .72 1.61 16 0 - - 101,299.90 - 00 0.00 0.78 61
Inter-seg
ment
trade 40,252,924. 44,327,05 -14,744,742. -84,579,98
income 14,744,742.05 27 - 7.09 - - - - - - 05 1.36 - -
Total
segment
business 1,100,510,047 737,541,22 32,261,352. 43,977,43 25,285,653. 5,921,00 -14,744,742. -84,579,98 1,143,413,61 702,859,674.
income .77 5.88 16 0.09 - - 101,299.90 - 00 0.00 05 1.36 0.78 61
Adjusted -76,159,038.2 -259,951,2 1,445,944.9 -1,249,703 -6,686,31 -7,517,007. -11,290,24 2,021,499.0 753,514. -2,969,109. -87,767,475. -270,933,51
items: 9 13.86 3 .09 9.93 69 8.98 - 0 48 2,900,687.98 26 29 9.42
2 - 1 - 90
Income 195,307.
tax 2,480,334.38 492,222.27 246,885.42 - - 858,125.35 95 - - 3,585,345.15 687,530.22
Net -78,639,372.6 -260,443,4 1,199,059.5 -1,249,703 -6,686,31 -7,517,007. -11,290,24 1,163,373.6 558,206. -2,969,109. -91,352,820. -271,621,04
profit 7 36.13 1 .09 9.93 69 8.98 - 5 53 2,900,687.98 26 44 9.64
2 - 1 - 91
(X). Note to main items of parent company’s financial statements
1. Accounts receivable
(1) Accounts receivable classifying according to the category:
Unit: RMB
2011-6-30 2010-12-31
Provision for bad Provision for bad
Category Book balance debts Book balance debts
Proportion Proportion Proportion Proportion
Amount (%) Amount (%) Amount (%) Amount (%)
Account
receivable
with
individual
major amount
- - - - - - - -
and
withdrawal
bad debt
provision
independently
Accounts
receivable
with minor
amount and
accounts
receivable
with major
545,703,102.53 100% - - 277,107,630.12 100% - -
amount found
no
devaluation
after
individual
devaluation
test
Account
receivable
with
individual
minor amount
- - - - - - - -
but
withdrawal
bad debt
provision
independently
Total 545,703,102.53 100% - - 277,107,630.12 100% - -
2 - 1 - 92
(2) Accounts receivable classifying according to the account age:
Unit: RMB
2011-6-30 2010-12-31
Account
Provision Provision
age Book value Amount Book value
Proportion for bad Proportion for bad
Amount (%) debts (%) debts
Within
545,700,213.53 100.00% - 545,700,213.53 277,104,741.12 100% - 277,104,741.12
1 year
- - - - - - - -
1-2years
2,889.00 - - 2,889.00 2,889.00 - - 2,889.00
2-3years
Above
- - - - - - - -
3 years
Total 545,703,102.53 100.00% - 545,703,102.53 277,107,630.12 100% - 277,107,630.12
(3）Balance of account receivables excludes the debts of the shareholders who hold over 5% (including 5%)
of voting share of our company in this reporting period.
（4）Particulars about top 5 units owing accounts receivable
Unit: RMB
Amount of bad debt Proviston ratio
Content of accounts receivable Book balance Reason
provision (%)
Subsidies for fuel gas-fired power fess
402,652,045.62 - - Within 1 year
receivable
Electricity tariff receivable 142,419,266.01 - - Within 1 year
Hot water fees receivable 631,790.90 - - Within 1 year
Total 545,703,102.53 - -
2. Other accounts receivable
(1) Other accounts receivable classifying according to the category:
Unit: RMB
2 - 1 - 93
2011-6-30 2010-12-31
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportion Proportion Proportion Proportion
Amount (%) Amount (%) Amount (%) Amount (%)
Account
receivable
with
individual
major amount
22,677,404.46 2.10% 22,677,404.46 94.17% 22,677,404.46 2.47% 22,677,404.46 100%
and
withdrawal
bad debt
provision
independently
Accounts
receivable
with minor
amount and
accounts
receivable
with major
1,056,240,981.91 97.65% - - 892,922,760.15 97.23% - -
amount found
no
devaluation
after
individual
devaluation
test
Account
receivable
with
individual
minor amount
2,729,502.62 0.25% 1,404,953.09 5.83% 2,729,502.62 0.3% 1,404,953.09 51.47%
but
withdrawal
bad debt
provision
independently
Total 1,081,647,888.99 100.00% 24,082,357.55 100.00% 918,329,667.23 100% 24,082,357.55 2.62%
2 - 1 - 94
Other accounts receivable classifying according to the account age:
Unit: RMB
2 - 1 - 95
Account age 2011-6-30 2010-12-31
Amount Proportion (%) Provision for bad debts Book value Amount Proportion (%) Provision for bad debts Book value
Within 1 year 219,015,867.00 20.25% - 219,015,867.00 55,697,645.24 6.06% 55,697,645.24
1-2years 261,428,722.35 24.17% - 261,428,722.35 261,428,722.35 28.47% 261,428,722.35
2-3years 100,975,970.51 9.34% 100,975,970.51 100,975,970.51 11% 100,975,970.51
Above 3 years 500,227,329.13 46.25% 24,082,357.55 476,144,971.58 500,227,329.13 54.47% 24,082,357.55 476,144,971.58
Total 1,081,647,888.99 100.00% 24,082,357.55 1,057,565,531.44 918,329,667.23 100% 24,082,357.55 894,247,309.68
2 - 1 - 96
(2) Other account receivable with individual minor amount but withdrawal bad debt provision
independently:
Unit: RMB
Amount of accruing
Accruing
Other accounts receivable Book balance provision for bad Reason
proportion
debts
Deposit receivable 2,729,502.62 1,404,953.09 0.16%
(3) Balance of other account receivables excludes the debts of the shareholders who hold over 5% (including
5%) of voting share of our company in this reporting period.
(4) Particulars about top 5 units owing other accounts receivable
Unit: RMB
Relationship with the Total proportion in
Units Amount Age limit
Company accounts receivable (%)
Shenzhong Subsidiary of the
710,337,484.77 Above 3 years 65.67%
Development Company Company
Zhongshan Power Subsidiary of the
326,394,031.93 1 to 2 years 30.18%
Company Company
Huiyang County
Kangtai Industrial Project partners 14,311,626.70 Above 3 years 1.32%
company
Weimei Power Subsidiary of the
8,103,250.17 Within 1 year 0.75%
Company Company
Xiefu Oil Supply Subsidiary of the
6,279,375.00 2 to 3 years 0.58%
Company Company
Total 1,065,425,768.57 98.50%
2 - 1 - 97
3. Long-term equity investment
Unit: RMB
Equity Reason for
Accrued
holding difference
provision for
proportion between
Voting right devaluation Cash
Original in invested equity
Calculation Balance at Increase and Balance proportion Provision for of this year dividend
Invested units investment units holding
method 2010-12-31 decrease 2011-6-30 in invested devaluation of this
cost proportion
units (%) year
and voting
right
proportion
Xiefu Oil
26,650,000.0
Supply 26,650,000.00 - 26,650,000.00 50 50 - - - -
0
Company Cost method
New
71,270,000.0
Electricity 71,270,000.00 - 71,270,000.00 75 75 - - - -
0
Company Cost method
Zhongshan
Electricity 218,240,000. 218,240,000.0 218,240,000.0
- 55 55 - - - -
Power 00 0 0
Company Cost method
Engineering
6,000,000.00 6,000,000.00 - 6,000,000.00 60 60 - - - -
Company Cost method
Weimei
115,319,049. 115,319,049.7 115,319,049.7
Electricity - 40 40 - - - -
76 6 6
Company Cost method
Shennan
6,703,800.00 6,703,800.00 - 6,703,800.00 100 100 - - - -
Singapore Cost method
2 - 1 - 98
Company
Environment 46,340,000.0
46,340,000.00 8,960,000.00 55,300,000.00 70 70 - - - -
Company Cost method 0
Shenzhong
Development - - - - 75 75 - - - -
Company Cost method
Shenzhong
Property - - - - 75 75 - - - -
Company Cost method
Energy
41,790,000. 47,881,000.0 89,671,000.0
Environmenta 41,790,000.00 10 10 - - - -
00 0 0
l Corporation Cost method
Jiangxi Nuclear Cost 37,315,000.0 37,315,000.0
37,315,000.00 5 5 - - - -
Power Company method 0 0
Jiangxi Xinchang Equity 286,285,715. -39,857,497. 187,245,776.
227,103,274.30 30 30 - - - -
Company method 00 48 82
855,913,564. 16,983,502.5 813,714,626.
Total 796,731,124.06 - - -
76 2 58
Less: devaluation
- - -
provision
Net amount of
16,983,502.5 813,714,626.
long-term equity 796,731,124.06
2 58
investment
2 - 1 - 99
4. Operating income and operating cost
(1) Operating income
Unit: RMB
Items Jan-Jun of 2011 Jan-Jun of 2010
Main business income 389,625,979.86 144,086,307.60
Other business income 52,982,115.56 22,968,737.21
Operating cost 694,282,683.32 294,907,340.61
（2）Main business (Sub-industry)
Unit: RMB
Jan-Jun of 2011 Jan-Jun of 2010
Industry
Operating income Operating cost Operating income Operating cost
Energy Industry 389,625,979.86 654,210,959.97 144,086,307.60 294,259,059.56
(3) Main business (Sub-products) Unit: RMB
Jan-Jun of 2011 Jan-Jun of 2010
Industry
Operating income Operating cost Operating income Operating cost
Electricity sales 387,043,743.56 650,250,151.84 143,161,046.58 292,167,488.02
Heat sales 2,582,236.30 3,960,808.13 925,261.02 2,091,571.54
Total 389,625,979.86 654,210,959.97 144,086,307.60 294,259,059.56
5. Investment income
(1) Particulars about investment income
Unit: RMB
Items Jan-Jun of 2011 Jan-Jun of 2010
Long-term equity investment income calculated by cost
- -
method
Long-term equity investment income calculated by
-39,857,497.48 -32,231,888.28
equity method
Total -39,857,497.48 -32,231,888.28
(2) Long-term equity investment income calculated by equity method
Unit: RMB
Jan-Jun of 2011 Jan-Jun of 2010
Invested units
Jiangxi Xinchang Company -39,857,497.48 -32,231,888.28
6. Supplementary information of cash flow sheet
Unit: RMB
Supplementary information Jan-Jun of 2011 Jan-Jun of 2010
1. Net profit transferred to cash flow of operating
activities:
Net profit -67,703,539.11 -187,645,762.64
Add: provision for assets devaluation - -
3 - 100
Fixed assets depreciation 33,240,256.10 22,539,592.88
Intangible assets amortization 468,527.22 431,697.75
Long-term accounts prepaid amortization 50,789.52 56,600.46
Loss of disposal of fixed assets, intangible assets and
other long-term assets - -
Scrap loss of fixed assets - -
Financial expense (income) 66,915,573.91 43,805,893.79
Investment loss (income) 39,857,497.48 32,231,888.28
Decrease of deferred income taxes assets (Increase) - -
Decrease of inventory (Increase) 37,737,263.40 13,263,352.52
Decrease of operating accounts receivable(Increase) -315,449,413.54 -121,558,372.43
Increase of operating accounts payable (Decrease) 143,715,100.19 -900,656.41
Other - -
Net amount of cash flow arising from operating activities -61,167,944.83 -197,775,765.80
2．Significant investment and financing activities
unrelated to cash income and expense:
Debts transferred to assets - -
Convertible Bonds due within 1 year - -
Fixed assets financed by leasing - -
3．Net changes in cash and cash equivalents:
Period-end balance of cash and cash equivalents 169,579,571.56 156,028,645.45
Less: period-begin balance of cash and cash equivalent 269,369,131.18 35,564,935.05
Amount of increase of cash and cash equivalent -99,789,559.62 120,463,710.40
(X) Supplementary information
1. Particulars about current non-recurring gains and loss
Unit: RMB
Item Amount of this year Amount of last year
Loss and gains of disposal of non-current assets -1,840.00
Government subsidies included in current gains and loss
(excluding those closely in accordance with corporation
business and enjoyed according to fixed amount under
national united standard) - -
Gains and loss from debts restructure - -
Impairment reversal of accounts receivable with single
devaluation test - -
Other operating income and expense excluding the above 72,907,122.30 250,055.79
Influence amount of income taxes -3,488,388.29 -
3 - 101
Influence amounts of minority shareholders (after tax) -7,421,370.20 -59,553.95
Total 61,997,363.80 188,661.84
2. Return on equity and earnings per share
Unit: RMB
Earnings per share
Weighted average return on
Profit in reporting period Basic earning s per Diluted earnings
equity (%)
share per share
Net profit attributable to ordinary shareholders
-5.01% -0.14 Not applicable
of the Company
Net profit attributable to ordinary shareholders
of the Company deducting non-recurring gains -8.67% -0.24 Not applicable
and loss
3 - 102
