深圳南山热电股份有限公司 2014 年半年度报告全文
Shenzhen Nanshan Power Co., Ltd.
SEMI-ANNUAL REPORT 2014
No.: 2014-060
12August 2014
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深圳南山热电股份有限公司 2014 年半年度报告全文
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of Shenzhen Nanshan Power Co., Ltd. (hereinafter referred to as the
Company) hereby confirm that there are no any fictitious statements, misleading
statements, or important omissions carried in this report, and shall take all
responsibilities, individual and/or joint, for the reality, accuracy and completion
of the whole contents.
All directors are attended the Board Meeting for report deliberation.
The Company has no plans of cash dividend distributed, no bonus shares and
has no share converted from capital reserve either.
Chairman Yang Haixian, principal of the Company, Director GM Fu Bo , CFO
Lv Xiaoping and Financial Manager Huang Jian, person in charge of accounting
organ (accounting principal) hereby confirm that the Financial Report of
Semi-Annual Report 2014 is authentic, accurate and complete.
The report has been prepared in both Chinese and English, for any
discrepancies, the Chinese version shall prevail. Please read the full report
seriously。
Concerning the forward-looking statements with future planning involved in the
Semi-Annual Report, they do not constitute a substantial commitment for
investors. Investors are advised to exercise caution of investment risks.
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深圳南山热电股份有限公司 2014 年半年度报告全文
Content
Semi-Annual Report 2014 ................................................................................................................. 1
Section I Important Notice, Contents and Paraphrase .................................................................. 4
Section II Company Profile ............................................................................................................... 5
Section III Accounting data and summary of finnaical indexes .................................................... 7
Section IV Report of the Board of Directors ................................................................................... 9
Section V Important Events ............................................................................................................ 18
Section VI Changes in shares and particular about shareholders............................................... 27
Section VII Preferred Stock………………………………………………………………...……..31
Section VIII Directors, Supervisors and Senior Executives ....................................................... 32
Section IX Financial Report ............................................................................................................ 33
Section X Documents Available for Reference ............................................................................. 33
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深圳南山热电股份有限公司 2014 年半年度报告全文
Paraphrase
Items Refers to Definition
Company, the Company, Shen Nan Dian Refers to Shenzhen Nanshan Power Co., Ltd.
Shen Nan Dian Zhongshan Co Refers to Shen Nan Dian (Zhongshan) Electric Power Co., Ltd.
Shen Nan Dian Dongguan Co Refers to Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd
Shen Nan Dian Engineering Co., Refers to Shenzhen Shennandian Turbine Engineering Technology Co., Ltd.
Shen Nan Dian Envionment Protection Co., Refers to Shenzhen Shen Nan Dian Envionment Protection Co., Ltd.
Server Co., Refers to Shenzhen Server Petrochemical Supplying Co., Ltd.
New Power, New Power Co., Refers to Shenzhen New Power Industrial Co., Ltd.
Singapore Company Refers to Shen Nan Energy (Singapore) Co., Ltd.
Nanshan Power Factory Refers to Nanshan Power Factory of Shenzhen Nanshan Power Co., Ltd.
Zhongshan Nam Long Power Plant of Shen Nan Dian (Zhongshan)
Zhongshan Nam Long Power Plant Refers to
Electric Power Co., Ltd.
Dongguan Gaobu Power Plant of Shen Nan Dian (Dongguan) Weimei
Dongguan Gaobu Power Plant Refers to
Electric Power Co., Ltd.
Shenzhong Properties Company Refers to Zhongshan Shenzhong Real Estate Investment Properties Co., Ltd.
Shenzhong Real Estate Company Refers to Zhongshan Shenzhong Real Estate Development Co., Ltd.
Syndisome Company Refers to Hong Kong Syndisome Co., Ltd.
Jiangxi Nuclear Power Company Refers to CPI Jiangxi Nuclear Power Co.,Ltd.
Energy Group Refers to Shenzhen Energy Group Co.,Ltd.
Paipu Technology Refers to Shenzhen Paipu Energy Technology Development Co.,LTD.
NAM HOI Refers to HONG KONG NAM HOI (INTERNATIONAL) LTD.
Guangju Holding Refers to Shenzhen Guangju Investment Holding Co.,Ltd.
HK Tengda Refers to Tengda Property Co.,LTD.
Guoneng International Trading Refers to Shenzhen Guoneng International Trading Co., LTD.
Hong Kong Energy Refers to Shenzhen Energy (Hong Kong) International Co.,LTD.
Guangju Energy Refers to Shenzhen Guangju Energy Co., LTD.
Guangju Industrial Refers to Guangju Industrial Co.,LTD.
Luneng Group Refers to Luneng Group Co., LTD
Kehuitong Refers to Shenzhen Kehuitong Investment Holding Co.,Ltd.
Shenzhen Energy Group Refers to Shenzhen Energy Group Co., LTD.
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深圳南山热电股份有限公司 2014 年半年度报告全文
Section II Company profile
I. Company Profile
Short form for share Shen Nan Dian A, Shen Nan Dian B Code for share 000037, 200037
Listing stock exchange Shenzhen Stock Exchange
Chinese name of the Company 深圳南山热电股份有限公司
Legal Representative Chairman Yang Haixian
II. Contact person and ways
Secretary of the Board Rep. of securities affairs
Name Hu Qin -
16/F-17/F, Hantang Building, OCT,
Contact adds. Nanshan District, Shenzhen, Guangdong -
Province
Tel. 0755-26948888 -
Fax. 0755-26003684 -
E-mail investor@nspower.com.cn -
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or
not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,
found more details in Annual Report 2013.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2013.
3. Registration changes of the Company
Whether registration has changed in reporting period or not
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深圳南山热电股份有限公司 2014 年半年度报告全文
□ Applicable √ Not applicable
Date/place for registration of the Company, registration number for enterprise legal license, number of taxation registration and
organization code have no change in reporting period, found more details in Annual Report 2013.
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深圳南山热电股份有限公司 2014 年半年度报告全文
Section III. Accounting data and summary of financial indexes
I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□Yes √ No
Increase/decrease in this
Current period Same period of last year
report y-o-y
Operating revenue (RMB) 527,397,555.77 565,476,934.91 -6.73%
Net profit attributable to shareholders of
-75,247,848.71 -101,535,348.67 -25.89%
the listed company(RMB)
Net profit attributable to shareholders of
the listed company after deducting -77,137,151.13 -110,880,260.43 -30.43%
non-recurring gains and losses(RMB)
Net profit attributable to shareholders of
the listed company after deducting -77,213,559.47 -110,880,260.43 -30.36%
non-recurring gains and losses(RMB)
Net cash flow arising from operating
390,088,829.00 505,430,314.24 -22.82%
activities(RMB)
Basic earnings per share (RMB/Share) -0.12 -0.17 -29.41%
Diluted earnings per share (RMB/Share) Not applicable Not applicable -
Weighted average ROE (%) -4.81% -6.78% 1.97%
Increase/decrease in this
End of current period End of last period report-end over that of last
period-end
Total assets (RMB) 5,549,757,952.73 5,440,291,369.21 2.01%
Net assets attributable to shareholder of
1,525,807,691.16 1,601,055,539.87 -4.70%
listed company(RMB)
II. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
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深圳南山热电股份有限公司 2014 年半年度报告全文
The Company has no difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) in reporting period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company has no difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and
Chinese GAAP (Generally Accepted Accounting Principles) in reporting period.
III. Items and amounts of extraordinary profit (gains)/loss
√ Applicable □ Not applicable
In RMB
Item Amount Note
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to
1,815,600.76
national standards, which are closely relevant to enterprise’s
business)
Other non-operating income and expenditure except for the
217,511.72
aforementioned items
Other gains/losses satisfied definition of extraordinary profit
(gains)/loss
Less: impact on income tax 65,004.62
Impact on minority shareholders’ equity (post-tax) 78,805.44
Total 1,889,302.42
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/lo
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深圳南山热电股份有限公司 2014 年半年度报告全文
Section IV. Report of the Board of Directors
I. Introduction
In the first half year of 2014, the global economy slows, electricity consumption in whole society was in the stage of medium-low
speed growth. Economical operation shows a steady state in Guangdong Province and the competitive in elcetricity market comes
more and more fierce. As the rapid growth of purchased electricity-- west-east electricity transmission and new units came into full
operation successively, the trend of industrial consumption is running low. Electricity market in Guangdong Province enjoys stability
in supply and demand, the grid present an apparently declined in peak power demands from those enterprise power by gas turbine.
At the same time, provincial grid increased power supply efforts to Shenzhen, the electricity from geological survey fossil power
plant declining year by year; in first half year of 2014, three fuel gas power plant of the Company have on-grid energy of 0.803 kwh
in total with 9.3% declined on a year-on-year basis.
Faced with the difficult market enviornment and business distress, the Company explores in great depth the best economic operation
model under the low power situation. Promoted economic operation results on the premise that the safety guarantee, reduced
operation costs as far as possible. Meanwhile, enforeced the budget manaegment, actively promoted the effective executiion of
government subsidy for electricity, closely follow the revenue and expenditure of subsidies. However, due to the high runnings in
NG price and un-schedual implementation of on-grid price policy, electricity subsidy standards in Shenzhen is unavailable to cover
the electricity costs, and resulted from the insufficient capital resouces of government electricity subsidy, electricity of the Company
declined with operation deficit continued.
II. Main business analysis
Introduction
Business scope of the Company including production and operation of power-up and heat supply, engaged in the relevant technology
consultant and technology service of power plant (station). The Company mainly operated electricity generation, owes three
wholly-owned or controlling power plants in total in Shenzhen, Zhongshan and Dongguan, and all of them are located in the power
load center of Pearl River Delta.
Name of the company On-grid energy (KWH) Same period of last year y-o-y changes
Nanshan Power Factory(including units belongs to
4.00 4.47 -10.54%
New Power Co.,)
Zhongshan Nam Long Power Plant 2.79 2.48 12.65%
Dongguan Gaobu Power Plant 1.23 1.89 -35.05%
Total 8.03 8.85 -9.30%
During the reporting period, the accumulative operating revenue of the Company was RMB 527,397,600, a 6.73% down as compared
to the same period of last year, operating costs was RMB 756,465,000, a 16.98% down as compared to the same period of last year,
which mainly due to the generating capacity reduced; Net profit attributable to owners of the parent company was RMB -75,247,800,
decreased the loss of RMB 26,287,500 as compared to the same period of last year, and the main reason was that the fuel costs
greatly reduced and electricity subsidies of the three power plants are reduced. As of 30 June 2014, the Company’s total assets was
about RMB 5.550 billion, net assets was RMB 1.526 billion and the asset-liability ratio was up to 69.39%.
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深圳南山热电股份有限公司 2014 年半年度报告全文
Y-o-y changes of main financial data
In RMB
Current period Same period of last year Y-o-y increase/decrease Reasons for changes
Generating income
Operating revenue 527,397,555.77 565,476,934.91 -6.73%
reduced
Operating costs 756,464,991.38 911,164,225.22 -16.98% Generating cost reduced
Disposal costs of dry
Sales expenses 1,659,963.69 1,097,790.70 51.21%
sludge increased
Entertainment charges
Administration expenses 43,191,076.63 45,078,741.44 -4.19% and vehicle costs
declined
The interest in first half
of 2014 from Shenzhong
Real Estate Company
have totally expense
Finance expenses 106,839,866.08 102,005,328.28 4.74% while at same period of
last year, interest expense
in Jan. to March and
interest capitalize in
April to June
Dongguan Company
made a supplementary
Income tax expenses 1,692,763.26 100.00%
payment of final
settlement
R&D input 0.00 0.00 0.00%
Net cash flow arising Received less subsidy
390,088,829.00 505,430,314.24 -22.82%
from operating activities and generating revenue
Technical improve of
Net cash flow arising low-nitrogen reform
from investment -22,525,931.92 -16,214,944.45 38.92% from Zhongshan
activities Dongguan expenses
more in the Period
Net cash flow arising
-171,777,208.82 -398,063,841.88 -56.85% Financed amount growth
from financing activities
Net increase of cash and
195,855,731.81 91,004,926.21 115.21% Financed amount growth
cash equivalent
Mainly because after
rests of 40% equity of
Investment income -1,270,147.52 0 100.00%
Huidong Server
re-measured by fair
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深圳南山热电股份有限公司 2014 年半年度报告全文
value, the added value of
long-term assets were
depreciated and
amortized in the Period
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period.
The future development and planning extended to reporting period that published in disclosure documents as prospectus, private
placing memorandum and recapitalize statement
□ Applicable √ Not applicable
No future development and planning extended to reporting period that published in disclosure documents as prospectus, private
placing memorandum and recapitalize statement.
Review on the previous business plan and its progress during reporting period
1. In the reporting period, three fuel gas power plant of the Company have a cumulative on-grid electricity of 0.803 billion kwh,
3,713 days safety production in succession achieved, created an important guarantee for routine operation and sustainable
development of the Company.
2. Actively participate in Xinjiang-aid program of Guangdong Province, on basis of document preparation of heat-supplying planning
in regions, obtained a Reply on preliminary work approval from Development and Reform Commission of the autonomous region;
moreover, entered into the trilateral investment cooperation agreement on-site between Shufu Couty Government in Kashi Prefecture
and HQ of Xinjiang-aid program of Guangdong Province.
3. While promoting the Xinjiang-aid removal project, in line with the general planning scheme prepared with Development and
Reform Commission of Guangdong Province, the Company promote expansion project of NG cogeneration [2×460MW(9F class)] in
Zhongshan Nanlang Power Plant at the same time, and is supported greatly by local government in Zhongshan and CNOOC.
Zhongshan Government listed the project in Central Heating Development Plan in Industrial Park and Industrial Agglomerations in
Zhongshan City(Y2013-Y2020), implemented project heat consumer, and the Report of Preliminary Work on NG cogeneration
[2×460MW(9F class)] Construction of Shennandian (Zhongshan) Power Co., Ltd. was reported officially to Development and
Reform Commission of Guangdong Province. Furthermore, the Company resulting in fundamental intention with CNOOC
Gas-Electricity Group in aspect of gas supplying
4. In January 2014, the Notice of Buy Shares of Shenzhen Nanshan Power Co., Ltd. was delivered to the Company from strategy
investors, indicated the intention of share buying and plans to communicate with the Company and shareholder’s unit in aspect of
relevant matters. On that day, after requesting permission from main shareholders, stocks of the Company apply for suspension since
the following day.
Currently, concerning the transaction mentioned, main shareholders carried out continues replying with relevant authorities;
intermediary of the private placement conduct a full responsible investigation on the Company, and to sort out and verify relevant
assets in aspect of approval procedures, ownership matters and other relevant staffs with the Company.
In the following time, the Company will continues to conduct a proof and implemented relevant decision-making procedures in
aspect of the private placement with other related parties, took concerted cooperation with relevant intermediary for due diligence,
actively improved the complete procedure for relevant assets as well as problem solving for relevant controversy.
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深圳南山热电股份有限公司 2014 年半年度报告全文
III. Constitution of main business
In RMB
Increase or Increase or Increase or
decrease of decrease of decrease of gross
Operating
Operating cost Gross profit ratio operating revenue operating cost profit ratio over
revenue
over same period over same period same period of
of last year of last year last year
According to industries
Energy 499,061,668.37 727,838,652.89 -45.84% -7.81% -18.14% 18.41%
Engineering labor 0.00 2,742,845.01 0.00% -100.00% 13.90% 372.19%
Sludge treatment
27,037,654.80 20,573,089.80 23.91% 30.42% 37.34% -3.83%
income
Other revenue 358,118.88 3,795,938.53 -959.97% -82.72% -16.06% -841.73%
According to products
Power marketing 499,061,668.37 727,838,652.89 -45.84% -7.67% -18.10% 18.58%
Thermal
0.00 0.00 0.00% -100.00% -100.00% -48.84%
marketing
Engineering labor 0.00 2,742,845.01 0.00% -100.00% 13.90% 372.19%
Sludge drying 27,037,654.80 20,573,089.80 23.91% 30.42% 37.34% -3.83%
Others 358,118.88 3,795,938.53 -959.97% -82.72% -16.06% -841.73%
According to region
Shenzhen area 282,375,107.98 376,780,975.22 -33.43% -8.65% -23.85% 26.62%
Dongguan area 64,513,662.10 122,980,270.20 -90.63% -33.66% -38.20% 13.98%
Zhongshan area 179,568,671.97 255,189,280.81 -42.11% 13.45% 17.43% -4.81%
IV. Core competitive-ness analysis
The Company, as a leader in the field of gas turbine generator, was honor the title of “The biggest gas turbine power generation
enterprise in China”; it is the enterprise with the most 9E (PG9171E gas-steam combined-cycle generator-transformer unit) held so
far, and also it is the President Unit of Guangdong Gas Turbine Generator Association. The Company realized transformation from
traditional power plant to a energy cascade comprehensive utilization enterprise in terms of power, cooling and heat supplying
(hot-water and steam) to areas as well as recycling treatment of sludge. After two decades construction and development, the
Company has training and absorbing a large number of gas turbine technology specialist, meanwhile, through reinforcing the
communication and cooperation with the industry in same profession, created a gas turbine talent training base, which lay out a
favorable foundation for the follow-up development of the enterprise.
With a favorable peaking performance in gas turbine, plus obviously environmental mitigation effect for natural gas, therefore, the
gas turbine is indispensable to the economically developed coastal areas in particular, whether in terms of roles in emergency grid
loading and regional security and environmental protection needs. Along with the reform and implementation of national electricity
price system, natural gas reform and gas turbine enterprise still owns a competition-ness and major operation rooms.
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深圳南山热电股份有限公司 2014 年半年度报告全文
V. Investment analysis
1. External equity investment
(1) External investment
√ Applicable □ Not applicable
External investment
Investment at same period of last year
Investment in reporting period (RMB) Changes
(RMB)
0.00 8,000,000.00 100.00%
Invested company
Proportion of equity held by listed
Name Main business
company in invested company
Development, construction and operation
of the nuclear power projects; power
generating and relevant products; foreign
trading (excluded import and export
CPI Jiangxi Nuclear Power Co., Ltd. 5.00%
business with state-run trade management
concerned); (excluding projects, the above
mentioned, with national special
permission hold)
2. Trust management, derivative investment and entrust loans
In reporting period, the Company has no trust management, derivative investment and entrust loans occurred
3. Application of raised proceeds
The Company has no fund raised in the Period
4. Main subsidiaries and joint-stock companies analysis
√ Applicable □ Not applicable
Main subsidiaries and joint-stock companies
In RMB
Main
Industry Registered Operation Operation
Name Type products or Total assets Net assets Net profit
involved capital revenue profit
service
Shen Nan power RMB 746.8 1,054,981,3 129,655,32 180,165,51 -99,330,4
Subsidiary Electricity -30,001,912.50
Dian generation million 05.10 1.34 7.35 21.02
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深圳南山热电股份有限公司 2014 年半年度报告全文
Zhongshan by burning
Company machines,
power
generation
by
remaining
heat, power
supply and
heat supply
(excluding
pipeline
network of
heat
supply),
lease of
dock and
oil storage
(excluding
oil
products,
dangerous
chemicals
and
inflammabl
e and
explosive
materials).
Constructio
Shen Nan n and
Dian operation of US $ 35.04 1,106,827,3 290,699,51 64,650,984. -83,115,8
Subsidiary Electricity -30,129,451.13
Dongguan natural gas million 46.83 3.54 84 01.72
Company power
plants.
Technology
developmen
t regarding
to
application RMB
New Power Power 426,862,34 72,840,715. 59,681,523. 21,405,91
Subsidiary of 113.85 21,405,913.84
Company industry 2.01 07 39 3.84
remaining million
heat
(excluding
restricted
items) and
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深圳南山热电股份有限公司 2014 年半年度报告全文
power
generation
with
remaining
heat. Add:
power
generation
through
burning
machines.
Shenzhong RMB
1,066,514,7 -46,501,768 -25,320,1
Real Estate Subsidiary Real Estate Real Estate 177.80 25,641.03 -25,311,371.95
67.56 .79 56.95
Company million
5. Subsidiary obtained in Period
In reporting period, controlling subsidiary Shennandian Zhongshan Power Company established a wholly-owned subsidiary
Zhongshan Shennandian Warehouse Co., Ltd. with business scope of warehousing service, oil depot and pier lease. Zhongshan
Shennandian Warehouse Co., Ltd. included in consolidated statement of the Company since date of founded. The new company
shows no influence on operation performance of the Company and controlling subsidiary temporary during the process of
construction.
6. Major project invested by non-raised funds
√ Applicable □ Not applicable
In ten thousand Yuan
Amount invested
Total investment Amount invested in
Project accumulative till end Progress Earnings
planned this period
of reporting period
CPI Jiangxi Nuclear Developing earlier-s
34,785 0 5,731.5 N/A
Power Co., Ltd. tage works
Total 34,785 0 5,731.5 -- --
VI. Prediction of business performance from January – September 2014
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the
warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable √ Not applicable
VII. Explanation from the Board and Supervisory Committee for “Qualified Opinion” from
the CPA of this year’s
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深圳南山热电股份有限公司 2014 年半年度报告全文
□ Applicable √ Not applicable
VIII. Explanation from the Board for “Qualified Opinion” of last year’s
√ Applicable □ Not applicable
In year 2013, Ruihua CPA (LLP) issued qualified auditor’s report with paragraph of emphasized matters for the Company. During
the report period, the matter involved in non-standard qualified opinion has no any progress. (More details found in notice of No.:
2014-024 from Annual Report of 2013)
IX. Implementation of profit distribution in reporting period
Implementation or adjustment of profit distribution plan in reporting period, cash dividend plan and shares converted from capital
reserve in particular
□ Applicable √ Not applicable
The profit distribution plan in semi-annual year was: no cash dividend distributed, no bonus shares and has no share converted from
capital reserve either.
X. Profit distribution and capitalization of capital reserves in the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
the semi-annual year
XI. In the report period, reception of research, communication and interview
√ Applicable □ Not applicable
Contents discussed and
Time Place Way Type Reception
material provided
Conference room Operation status of the
2014-05-16 Field research Individual Investor
of the Company Company
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深圳南山热电股份有限公司 2014 年半年度报告全文
Section V. Important Events
I. Corporate governance
During the reporting period, in line with the Company Law, Securities Law, Governance Rules for Listed Company, Rules of Stocks
Listing in Shenzhen Stock Exchange and relevant requirement from CSRC, the Company continues to standardizeed and improved
the corporate governance structure, established and perfected the internal management, made a serial controlling system perfected,
accelerate an effectively balance in the “Three Commissions”, further to refine the governance mechanism and improve standards of
decision-making and management.
1. General Meeting of the Company was convened and open under the laws and regulations, witnessing lawyers are invited on-site.
Concerning the votings involves the affiliated deals, affiliated shareholders withdraw from voting to guarantee a legal
decision-making procedure for related transactions in way of openness, fairness and impartiality, there is no condition of major
shareholders and its related parties occupied or transferred assets, capital and other resources of the Company in all forms. The
Company guarantee shareholders, minority in particular, fully perform the righst to know and participation rights via various ways.
2. The Company convened board meeting and formed a resolution strictly in accordance with the "Rules of Procedure for the Board"
and "Articles of Association". The directors of the Company actively attended board meetings with a serious and responsible attitude,
made decision prudently, and expressed clear opinion on matters arising. Directors earnestly fulfilled its diligence obligations of good
faith, and earnestly safeguard the interests of minority shareholders. Independent directors have performed their duties
conscientiously and safeguarded the overall interests of the Company, particularly concerned about the issues related to the legitimate
interests of small investors. The Board of Directors has established the Audit Committee, the Remuneration and Appraisal Committee,
and the special committees have been working to develop the relevant regulations of the committees to ensure efficient operation of
the board of directors and scientific decision-making.
3. The number and composition of the Board of Supervisors is of compliance with laws and regulations and the "Articles of
Association". Supervisors of the Company earnestly performed their duties in accordance with the requirements and the "Rules of
Procedure of the Board of Supervisors" and "Articles of Association". Supervisors effectively inspected all aspects of the Company
such as production and management as well as legal compliance of the directors, senior management personnel performing their
duties, effectively implemented the oversight duties, and safeguarded the interests of the Companies and small investors.
4. The management team of the Company strictly implemented Board resolutions in accordance with the strict compliance of the
"Articles of Association". Acts ultra various exercise of authority does not exist. Matters beyond the authority of managers will be
submitted to the Board for consideration and there is no tendency of “internal control”. The manager work diligently in the ordinary
course of business, strengthened the standard operation, and carried out honest and trustworthy business. There is no failure to
faithfully perform their duties, and no breach of fiduciary duty case, fully respect and safeguard the legitimate rights of stakeholders
to realize the coordinate and balance the interests of all parities.
5. The Company fulfill their information disclosure obligation in accordance with relevant regulations of Company Law, the
Securities Times and Juchao Website are appointed as the newspaper and website for information released, guarantee all shareholders
of the Company getting infomration in way of fairness. There is no condition of undisclosure information offered to major
shareholders and actual controller in the Period that violated the governance regulations.
6. The undisclosed information reported by first majority shareholder including: daily generated energy, report of the barriers of
electrical production and accident report and monthly security briefings. According to requirments, before Meeting of the Board and
Supervisory Committee open, secretariat of the Board collected all proposals that have been varified in GM meeting, to the directors
and supervisors, and filed in the property rights legal department and administration department at the same time.
With purpose of strengthening manaegment of non-diclosure information, insider have been controlled stricted by the Company in
numbers, standardized information tranfer procedures, strictly performing relevant regulation of Registration System of Insiders,
17
深圳南山热电股份有限公司 2014 年半年度报告全文
submitted insider information to Shenzhen Security Bureau regularly.
There is no difference between corporate governance and the requirements of the Company Law and relevant regulations of the
CSRC
II. Significant lawsuits and arbitrations of the Company
No significant lawsuits and arbitrations of the Company in reporting period.
III. Question from media
No universal questioned by media in reporting period
IV. Bankruptcy reorganization
In reporting period, the Company has no bankruptcy reorganization occurred.
V. Transaction in assets
The Company has no major assets purchased, assets sales and enterprise combined in the Period
VI. Implementation and its influence of equity incentive
The company had not yet made the plan of equity incentive in the reporting.
VII. Insignificant related transactions
1. In reporting period, the Company has no routine operational related transactions, assets purchased and
assets sales occurred, and no major related transaction of investment outside either. The Company has no
related transaction with routine operation concerned in Period
2. Current related liabilities and debts
√ Applicable □ Not applicable
Whether exist non-operating contact of related liabilities and debts or not
√Applicable □Not applicable
Exist Balance at Occurred Balance at
non-operating period-begin amount in the period-end (in
Related parties Relationship Type Reason (in 10 period (in
occupation of thousand 10 thousand 10 thousand
funds (Y/N) Yuan) Yuan) Yuan)
Shenzhen Shennandian Debt payable Routine
Turbine Engineering Subsidiary to related operation N 11,168.9 -402.65 10,766.25
Technology Co., Ltd. party open credit
Shenzhen Shennandian Financial Profit
Subsidiary N 5,626.5 0 5,626.5
Turbine Engineering claim distribution
18
深圳南山热电股份有限公司 2014 年半年度报告全文
Technology Co., Ltd. receivable
from related
party
Financial
Shen Nan Dian claim Routine
(Zhongshan) Electric Subsidiary receivable operation N 62,072.85 1,684.73 63,757.58
Power Co., Ltd. from related open credit
party
Financial
Zhongshan Shenzhong claim Routine
Real Estate Subsidiary receivable operation N 77,479.88 1,945.12 79,425
Development Co., Ltd from related open credit
party
Financial
Zhongshan Shenzhong claim Routine
Real Estate Investment Subsidiary receivable operation N 8,771.77 292.52 9,064.29
Property Co., Ltd from related open credit
party
Financial
Shen Nan Dian
claim Routine
(Dongguan) Weimei
Subsidiary receivable operation N 6,233.57 7,250.4 13,483.97
Electric Power Co.,
from related open credit
Ltd
party
Shen Nan Dian
Debt payable Routine
(Dongguan) Weimei
Subsidiary to related operation N 738.82 0 738.82
Electric Power Co.,
party open credit
Ltd
Debt payable Routine
Shenzhen New Power
Subsidiary to related operation N 55,224.39 -54,387.96 836.43
Industrial Co., Ltd.
party open credit
Financial
claim
Shenzhen New Power Profit
Subsidiary receivable N 59,787.59 -59,787.59 0
Industrial Co., Ltd. distribution
from related
party
Shenzhen Server Debt payable Routine
Petrochemical Subsidiary to related operation N 12.78 -12.78 0
Supplying Co., Ltd party open credit
Shenzhen Server Debt payable Routine
Petrochemical Subsidiary to related operation N 8,048.56 68.25 8,116.81
Supplying Co., Ltd party open credit
19
深圳南山热电股份有限公司 2014 年半年度报告全文
Financial
Shenzhen Shen Nan claim Routine
Dian Environment Subsidiary receivable operation N 4,139.66 -3,624.39 515.27
Protection Co., Ltd. from related open credit
party
Financial
claim Routine
Shen Nan Energy
Subsidiary receivable operation N 21.23 0 21.23
(Singapore) Co., Ltd.
from related open credit
party
Financial
claim Routine
Hong Kong
Subsidiary receivable operation N 6.49 1.66 8.15
Syndisome Co., Ltd.
from related open credit
party
Debt payable Routine
Hong Kong
Subsidiary to related operation N 162.69 1.47 164.16
Syndisome Co., Ltd.
party open credit
Influence on business performance Influence on financial status from related liabilities and debts: decreased current assets
and financial status of the Company RMB 522,375,500 in the period and decreased current liabilities RMB 547,336,700 in the
from related liabilities and debts period.
3. Other significant related transactions
The company had no other significant related transactions in reporting period.
VIII. Non-business capital occupying by controlling shareholders and its related parties
No non-business capital occupied by controlling shareholders and its related parties in Period
IX. Significant contracts and its implementation
1. Trusteeship, contract and lease
(1) Trusteeship
√ Applicable □ Not applicable
Instruction of trusteeship
As for the Assets Custody Operation Contract in Connection with Burning Machine-Stream Joint Cycle Heat Power Generation
Machine Unit entered into in February 2003, the Company was entrusted to operate and manage the power generation machine unit
owned by its wholly-owned subsidiary New Power Company. The custody business service charge RMB 2.3934 million was
obtained by the Company in reporting period.
20
深圳南山热电股份有限公司 2014 年半年度报告全文
(2) Contract
The Company had no contract in the reporting period.
(3) Leasing
The Company had no leasing in the reporting period.
2. Guarantees
√ Applicable □ Not applicable
In ten thousand Yuan
Particulars about the external guarantee of the Company (Barring the guarantee for the controlling subsidiaries)
Related Actual date of Guarante
Complete
Announcem happening e for
Name of the Guarantee Actual Guarantee Guarantee implemen
ent (Date of related
Company guaranteed limit guarantee limit type term tation
disclosure signing party
(Y/N)
date agreement) (Y/N)
Guarantee of the Company for the subsidiaries
Related Actual date of Guarante
Complete
Announcem happening e for
Name of the Guarantee Actual Guarantee Guarantee implemen
ent (Date of related
Company guaranteed limit guarantee limit type term tation
disclosure signing party(Y/
(Y/N)
date agreement) N)
Shen Nan Dian General
2014/4/25 25,000 2014-06-12 25,000 1year N Y
Dongguan Company assurance
Shen Nan Dian General 1year
2014/4/25 10,000 2014-04-30 10,000 N Y
Dongguan Company assurance
Shen Nan Dian General 1year
2014/4/25 7,000 2014-06-10 0 N Y
Dongguan Company assurance
Shen Nan Dian General 1year
2014/4/25 24,000 2014-01-28 4,300 N Y
Dongguan Company assurance
Shen Nan Dian General 1year
2014/4/25 21,000 2014-03-01 3,500 N Y
Dongguan Company assurance
Shen Nan Dian General 1year
2014/4/25 8,000 2013-08-16 0 N Y
Dongguan Company assurance
Shen Nan Dian General 1year
2014/4/25 10,000 2014-05-16 5,000 N Y
Zhongshan Company assurance
Shen Nan Dian General 1year
2014/4/25 5,000 2014-01-08 5,000 N Y
Zhongshan Company assurance
Shen Nan Dian General 1year
2014/4/25 10,000 2014-05-09 0 N Y
Zhongshan Company assurance
Shen Nan Dian General
2014/4/25 4,000 2013-08-09 1,292 1year N Y
Zhongshan Company assurance
Shen Nan Dian
Environment 2014/4/25 600 2009-11-03 600 General 5 years N Y
Protection Co.
21
深圳南山热电股份有限公司 2014 年半年度报告全文
assurance
Shen Nan Dian General
Environment 2014/4/25 2,500 2013-12-26 2,500 1year N Y
Protection Co. assurance
New Power General 1year
2014/4/25 10,000 2013-12-30 10,000 N Y
Company assurance
New Power General 1year
2014/4/25 10,000 2013-12-20 10,000 N Y
Company assurance
New Power General 1year
2014/4/25 30,000 2013-12-31 15,000 N Y
Company assurance
Total amount of actual
Total amount of approving
occurred guarantee for
guarantee for subsidiaries in 177,100 92,192
subsidiaries in report period
report period (B1)
(B2)
Total balance of actual
Total amount of approved
guarantee for subsidiaries at
guarantee for subsidiaries at the 177,100 92,192
the end of reporting period
end of reporting period (B3)
(B4)
Total amount of guarantee of the Company( total of two abovementioned guarantee)
Total amount of approving Total amount of actual
guarantee in report period 177,100 occurred guarantee in report 92,192
(A1+B1) period (A2+B2)
Total amount of approved Total balance of actual
guarantee at the end of report 177,100 guarantee at the end of report 92,192
period (A3+B3) period (A4+B4)
The proportion of the total amount of actually guarantee in the
60.42%
net assets of the Company (that is A4+ B4)
Including:
Amount of guarantee for shareholders, actual controller and its
0
related parties(C)
The debts guarantee amount provided for the guaranteed parties
92,188.9
whose assets-liability ratio exceed 70% directly or indirectly(D)
Proportion of total amount of guarantee in net assets of the
15,901.62
Company exceed 50%(E)
Total amount of the aforesaid three guarantees(C+D+E) 108,090.52
Explanations on possibly bearing joint and several liquidating
N/A
responsibilities for undue guarantees (if applicable)
Explanations on external guarantee against regulated
N/A
procedures (if applicable)
(1) Guarantee outside against the regulation
□ Applicable √ Not applicable
No guarantee outside against the regulation in Period
3. Other significant contract
√ Applicable □ Not applicable
Net book Appraisal Appraisal Base date Dealing Implemen
Parties in Related
Counterp Date for value of value of agency of assets Pricing price (10 Relations tation end
the transactio
arty signing assets assets (if evaluatio principle thousand hip as the
contract n(Y/N)
involved involved( applicable n (if Yuan) Report
22
深圳南山热电股份有限公司 2014 年半年度报告全文
(10 10 ) applicable
thousand thousand )
Yuan) (if Yuan) (if
applicable applicable
) )
Be
composed
of three
parts of
LNG
price,
comprehe
nsive
Guangdo
service
ng Trade
charge
Branch Related
and taxes.
of Not contracts
The 2013-1-1 Two applicable
CNOOC N still in
company 5 different
Gas & implemen
price of
Power ting
LNG
Group
should be
Co., Ltd.
set in two
period
later from
2013,
2014 and
later
contract
years
Be
Guangdo composed
ng Trade of three
Shen Nan Branch parts of Related
Dian of LNG Not contracts
2013-12- applicable
Donggua CNOOC price, N still in
21
n Gas & comprehe implemen
Company Power nsive ting
Group service
Co., Ltd. charge
and taxes.
Shen Nan Zhuhai Be Not Related
2014-05- applicable
Dian Trade composed N contracts
31
Zhongsha Branch of three still in
23
深圳南山热电股份有限公司 2014 年半年度报告全文
n of parts of implemen
Company CNOOC LNG ting
Gas & price,
Power comprehe
Group nsive
Co., Ltd. service
charge
and taxes.
4. Other material transactions
□ Applicable √ Not applicable
The Company had no other material transactions in the reporting period.
X. Commitments made by the Company or shareholders holding above 5% shares of the Company in
reporting period or extending to reporting period
□ Applicable √ Not applicable
No commitments made by the Company or shareholders holding above 5% shares of the Company in reporting period or extending
to reporting period in the reporting period.
XI. Engagement and dismissal of CPA
Whether the semi-annual report was audited or not
□ Yes √ No
XII. Penalty and rectification
□ Applicable √ Not applicable
The Company had no penalty or rectification in the reporting period.
XIII. Risk disclosure of delisting with laws and rules violated
□ Applicable √ Not applicable
The Company has no delisting risks with laws and rules violated in Period.
XIV. Explanation on other significant events
√ Applicable □ Not applicable
During the reporting period, in process of private placement preparation, the event still exist major uncertainities, stock of the
Company suspended since open dated 9 January 2014 in order to prevent price fluctuation arising from the event. Relevant plans still
in negotiation and preparation, in order to protect fairness of information disclose and investor’s interests, relevant annoucement will
release after matters determined and stock resumption shall be applied.
24
深圳南山热电股份有限公司 2014 年半年度报告全文
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Shares
In share
Before the Changes Increase/Decrease in the Change (+, -) After the Changes
Public
Newly- Proportio
Bonus reserve-co
Amount Proportion issued Others Subtotal Amount
shares nverted n
shares
shares
I. Restricted shares 18,263 0.00% 18,263 0.00%
3. Other domestic
18,263 0.00% 18,263 0.00%
shareholding
Domestic nature
18,263 0.00% 18,263 0.00%
person shares
602,744,3 602,744,3
II. Unrestricted shares 100.00% 100.00%
33 33
338,894,0 338,894,0
1.RMB ordinary shares 56.22% 56.22%
12 12
2.Domestically listed 263,850,3 263,850,3
43.77% 43.77%
foreign shares 21 21
602,762,5 602,762,5
III. Total shares 100.00% 100.00%
96 96
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
√ Applicable □ Not applicable
shareholder of the Company State Grid Shenzhen Energy Development Group Co., Ltd. (”State Grid Energy”) was mergered by
Shenzhen Guoneng International Trading Co., Ltd. (“Shenzhe Guoneng Trading”) on 13 December 2013, the corporation
qualification of State Grid Energy will cancelled after merger, and Shenzhe Guoneng Trading inherited all the equity and liability of
State Grid Energy. Relevant registration changes on Industrial & Commerce has been completed by Shenzhe Guoneng Trading in the
Period, and obtained a new Business License for Enterprise Corporate issued by Shenzhen Market Supervisory Authority. Until now,
Shenzhe Guoneng Trading holds 32,673,560 A-share of Shen Nan Dian, 5.42% in total shares of the Company.
25
深圳南山热电股份有限公司 2014 年半年度报告全文
Explanation on changes in aspect of total shares, shareholders structures as well as structure of assets and liability of the Company
□ Applicable √ Not applicable
II. Number of shares and shares held
In Share
Total preference shareholders
with voting rights recovered at
Total shareholders at period-end 37,313 0
end of reporting period (if
applicable) (see Note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Amount Number of share
Amount
Changes of pledged/frozen
Number of of
Nature of Proportion of in un-restri
Shareholders shares held at restricte
shareholder shares held reportin cted
period-end d shares State of share Amount
g period shares
held
held
Shenzhen
State-owned 100,769
Guangju
16.72% 100,769,712
Industrial Co., corporate ,712
Ltd.
HONG KONG
NAM HOI 92,123,
Overseas corporate 15.28% 92,123,248
(INTERNATION 248
AL) LTD
SHENZHEN State-owned
ENERGY corporate 65,106,
10.80% 65,106,130
(GROUP) CO., 130
LTD.
BNP P P/PANDA
INVESTMENT 49,426,
Overseas corporate 8.20% 49,426,518
COMPANY 518
LIMITED
Shenzhen
Guoneng State-owned 32,673,
5.42% 32,673,560
International corporate 560
Trading Co., LTD
Yang Fangping Domestic natural 2,536,0
0.42% 2,536,073
person 73
Jinbang Security 1,500,0
Overseas corporate 0.25% 1,500,000
Holding Co., Ltd 00
Wang Tingsheng Domestic natural 0.22% 1,354,378 1,354,3
26
深圳南山热电股份有限公司 2014 年半年度报告全文
person 78
Xu Yingmu Domestic natural 1,267,6
0.21% 1,267,645
person 45
Ji Hongjun Domestic natural 1,167,0
0.19% 1,167,000
person 00
Strategy investors or general corporate
becomes top 10 shareholders due to N/A
rights issued (if applicable)(see Note 3)
Explanation on associated relationship 1. Shenzhen Energy (Group) Co., Ltd. holds indirectly 100% equities of Hong Kong Nam
Hoi (International) Limited; 2. Among other social public shareholders, the Company did
among the aforesaid shareholders not know whether there were associated relationships or belonging to consistent actors.
Particular about top ten shareholders with un-restrict shares held
Type of shares
Shareholders Amount of un-restrict shares held at period-end
Type Amount
RMB ordinary
Shenzhen Guangju Industrial Co., Ltd. 100,769,712 100,769,712
shares
Domestically
HONG KONG NAM HOI
92,123,248 listed foreign 92,123,248
(INTERNATIONAL) LTD
shares
SHENZHEN ENERGY (GROUP) RMB ordinary
65,106,130 65,106,130
CO., LTD. shares
Domestically
BNP P P/PANDA INVESTMENT
49,426,518 listed foreign 49,426,518
COMPANY LIMITED
shares
Shenzhen Guoneng International RMB ordinary
32,673,560 32,673,560
Trading Co., LTD shares
Yang Fangping Domestically
2,536,073 listed foreign 2,536,073
shares
Domestically
Jinbang Security Holding Co., Ltd 1,500,000 listed foreign 1,500,000
shares
Wang Tingsheng RMB ordinary
1,354,378 1,354,378
shares
Xu Yingmu RMB ordinary
1,267,645 1,267,645
shares
Ji Hongjun RMB ordinary
1,167,000 1,167,000
shares
Expiation on associated relationship or 1. Shenzhen Energy (Group) Co., Ltd. holds indirectly 100% equities of Hong Kong Nam
Hoi (International) Limited; 2. Among other social public shareholders, the Company did
consistent actors within the top 10 not know whether there were associated relationships or belonging to consistent actors.
27
深圳南山热电股份有限公司 2014 年半年度报告全文
un-restrict shareholders and between
top 10 un-restrict shareholders and top
10 shareholders
Explanation on shareholders involving
margin business (if applicable)(see N/A
note 4)
Whether has a buy-back agreement in reporting period or not
□Yes √No
The Company had no buy-back agreement in reporting period.
III. Changes of controlling shareholders or actual controller
1. Controlling shareholder of the Company
The Company has no controlling shareholder, and there is no change in Period
2. Actual controller of the Company
The Company has no actual controller, and there is no change in Period
IV. Share holding increasing plan proposed or implemented in reporting period from
shareholder of the Company and its concerted action person
□ Applicable √Not applicable
As far as the Company know, there are no share holding increasing plan proposed or implemented in Period from shareholder of the
Company and its concerted action person
28
深圳南山热电股份有限公司 2014 年半年度报告全文
Section VII. Preferred Stock
I. Issuance and listing of preferred stock in Period
□ Applicable √ Not applicable
II. Number of shareholders with preferred stock held and shareholdings
□ Applicable √ Not applicable
III. Repurchase and conversion of preferred stock
1. Preferred stock repurchased
□ Applicable √ Not applicable
2. Preferred stock converted
□ Applicable √ Not applicable
IV. Preferred stock with voting rights recovered and executed
□ Applicable √ Not applicable
V. Accounting policy taken for preferred stock and reasons
□ Applicable √ Not applicable
29
深圳南山热电股份有限公司 2014 年半年度报告全文
Section VIII. Directors, Supervisors and Senior Executives
I. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
Shares held by directors, supervisors and senior executives have no changes in reporting period.
II. Resignation and dismissal of directors, supervisors and senior executives
□ Applicable √ Not applicable
Resignation and dismissal of directors, supervisors and senior executives have no changes in reporting period.
30
深圳南山热电股份有限公司 2014 年半年度报告全文
Section IX. Financial Report (Un-audited)
The financial report of the semi-annual report 2014 has not been audited (Attached)
X. Documents Available for Reference
I. Semi-annual Report of 2014 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 original 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.
31
深圳南山热电股份有限公司 2014 年半年度报告全文
Consolidated Balance Sheet
In RMB
Liabilities and owners’
Asset 2014-6-30 2013-12-31 2014-6-30 2013-12-31
equity:
Current assets: Current liabilities:
Monetary funds 733,910,561.33 543,054,829.52 Short-term loans 2,924,923,209.20 2,998,961,917.89
Notes receivable - - Notes payable 64,000,000.00 50,000,000.00
Accounts
864,028,640.18 876,368,547.41 Accounts payable 336,277,792.09 78,171,109.54
receivable
Accounts paid in Accounts received in
6,676,863.37 11,000,834.97 - 512,402.70
advance advance
Interest receivable - - Wage payable 45,527,032.05 43,361,677.73
Dividend
- - Taxes payable 854,958.72 22,682,243.56
receivable
Other receivables 36,862,443.60 42,191,268.26 Interest payable 106,113,549.68 98,775,045.80
Inventories 1,297,370,876.83 1,288,814,086.30 Dividend payable - -
Long-term debt
Other accounts
investment due within 1 - - 291,354,921.17 263,833,902.66
payable
year
Long-term liabilities due
Other current assets 516,851,797.26 565,589,166.99 - -
within 1 year
Total current liabilities 3,769,051,462.91 3,556,298,299.88
Total current assets 3,455,701,182.57 3,327,018,733.45 Non-current liabilities:
Non-current assets: Long-term loans 6,000,000.00 6,000,000.00
Long-term equity
82,410,852.48 83,681,000.00 Accrual liabilities 27,500,000.00 27,500,000.00
investment
Investment Other non-current
3,765,331.27 3,986,674.03 48,897,915.74 50,713,516.50
property liabilities
Total non-current
Fixed assets 1,830,364,106.46 1,892,316,932.05 82,397,915.74 84,213,516.50
liabilities
Construction in
93,936,376.97 48,692,441.81 Total liabilities 3,851,449,378.65 3,640,511,816.38
progress
Disposal of fixed asset - - Owners’ equity:
Intangible assets 57,909,127.09 58,924,611.98 Share capital 602,762,596.00 602,762,596.00
Long-term
Capital public
expenses to be - - 362,670,442.46 362,670,442.46
reserve
apportioned
Deferred income
2,788,794.11 2,788,794.11 Surplus public reserve 332,908,397.60 332,908,397.60
tax asset
Other non-current
22,882,181.78 22,882,181.78 Retained profit 227,466,255.10 302,714,103.81
asset
Balance difference of
Total non-current asset 2,094,056,770.16 2,113,272,635.76 foreign currency - -
translation
Total owner’s equity
attributable to parent 1,525,807,691.16 1,601,055,539.87
Company
Minority interests 172,500,882.92 198,724,012.96
Total shareholders’ equity 1,698,308,574.08 1,799,779,552.83
32
深圳南山热电股份有限公司 2014 年半年度报告全文
Total liabilities and
Total assets 5,549,757,952.73 5,440,291,369.21 5,549,757,952.73 5,440,291,369.21
shareholders’ equity
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
Balance sheet of parent company
In RMB
Liabilities and owners’
Asset 2014-6-30 2013-12-31 2014-6-30 2013-12-31
equity:
Current assets: Current liabilities:
Monetary funds 454,942,282.75 269,557,683.68 Short-term loans 1,889,000,000.00 1,929,000,000.00
Notes receivable - - Notes payable 64,000,000.00 50,000,000.00
Accounts
457,135,026.84 561,165,822.31 Accounts payable 271,944,620.94 140,299,583.60
receivable
Accounts paid in Accounts received in
171,106.20 92,985.00 - 162,402.70
advance advance
Interest receivable - - Wage payable 25,502,358.45 24,911,363.28
Dividend
56,264,962.17 654,140,866.58 Taxes payable 1,626,689.87 11,566,882.79
receivable
Other receivables 1,666,730,750.84 1,589,545,170.22 Interest payable 3,671,055.34 3,526,868.54
Inventories 82,887,127.79 84,396,527.41 Dividend payable - -
Long-term debt
Other accounts
investment due within 1 - - 219,980,587.54 769,598,877.74
payable
year
Long-term liabilities due
Other current assets 385,006,548.54 418,542,707.70 - -
within 1 year
Other current liabilities - -
Total current
Total current assets 3,103,137,805.13 3,577,441,762.90 2,475,725,312.14 2,929,065,978.65
liabilities
Non-current assets: Non-current liabilities:
Long-term equity
749,297,849.76 749,297,849.76 Long-term loans - -
investment
Investment Other non-current
- - 32,347,947.57 33,655,528.23
property liabilities
Total non-current
Fixed assets 263,403,054.80 269,217,021.95 32,347,947.57 33,655,528.23
liabilities
Construction in
37,111,878.16 37,711,980.01 Total liabilities 2,508,073,259.71 2,962,721,506.88
progress
Disposal of fixed asset - - Owners’ equity:
Intangible assets 7,668,141.80 8,010,181.91 Share capital 602,762,596.00 602,762,596.00
Long-term
Capital public
expenses to be - - 288,769,132.47 288,769,132.47
reserve
apportioned
Deferred income
- - Surplus public reserve 332,908,397.60 332,908,397.60
tax asset
Other non-current
- - Retained profit 428,105,343.87 454,517,163.58
asset
33
深圳南山热电股份有限公司 2014 年半年度报告全文
Balance difference of
Total non-current asset 1,057,480,924.52 1,064,237,033.63 foreign currency - -
translation
Total shareholders’ equity 1,652,545,469.94 1,678,957,289.65
Total liabilities and
Total assets 4,160,618,729.65 4,641,678,796.53 4,160,618,729.65 4,641,678,796.53
shareholders’ equity
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
Consolidated Profit Statement
In RMB
Item Jan-Jun 2014 Jan-Jun 2013
I. Total operation income 527,397,555.77 565,476,934.91
Including: operation income 527,397,555.77 565,476,934.91
II. Total operation cost 911,511,690.74 1,062,370,143.37
Including: operation cost 756,464,991.38 911,164,225.22
Operation tax and surcharge 3,355,792.96 3,024,057.73
Sales expense 1,659,963.69 1,097,790.70
Management expense 43,191,076.63 45,078,741.44
Financial expense 106,839,866.08 102,005,328.28
Loss of assets impairment - -
Add: Changing income of fair value - -
Investment income (Loss) -1,270,147.52 -
Including: Investment income on affiliated
- -
company and joint venture(Loss)
III. Operating profit (Loss) -385,384,282.49 -496,893,208.46
Add: Non-operating income 285,616,447.50 383,165,093.32
Less: Non-operating expense 10,380.50 10,000.00
Including: Disposal loss of non-current asset - -
IV. Total Profit -99,778,215.49 -113,738,115.14
Less: Income tax 1,692,763.26 -
V. Net profit -101,470,978.75 -113,738,115.14
Net profit attributable to owner’s equity of
-75,247,848.71 -101,535,348.67
parent company
Minority shareholders’ gains and losses -26,223,130.04 -12,202,766.47
VI. Earnings per share - -
i. Basic earnings per share -0.12 -0.17
ii. Diluted earnings per share Not applicable Not applicable
34
深圳南山热电股份有限公司 2014 年半年度报告全文
VII. Other consolidated income - -
VIII. Total consolidated income -101,470,978.75 -113,738,115.14
Total consolidated income attributable to owners of
-75,247,848.71 -101,535,348.67
parent company
Total consolidated income attributable to
-26,223,130.04 -12,202,766.47
minority shareholders
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
Profit statement of parent company
In RMB
Item Jan-Jun 2014 Jan-Jun 2013
I. Operation income 205,833,519.73 144,185,090.51
Less: Operation cost 338,703,247.78 323,163,492.48
Operation tax and surcharge 2,587,543.57 2,543,064.05
Sales expense - -
Management expense 18,337,356.02 12,946,082.42
Financial expense 33,900,873.73 33,683,875.02
Loss of assets impairment -
Add: Changing income of fair value - -
Investment income (Loss) - -
Including: Investment income on affiliated
- -
company and joint venture(Loss)
II. Operating profit (Loss) -187,695,501.37 -228,151,423.46
Add: Non-operating income 161,283,681.66 184,422,880.66
Less: Non-operating expense - -
Including: Disposal loss of non-current asset - -
III. Total Profit -26,411,819.71 -43,728,542.80
Less: Income tax -
IV. Net profit -26,411,819.71 -43,728,542.80
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 consolidated income -26,411,819.71 -43,728,542.80
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
35
深圳南山热电股份有限公司 2014 年半年度报告全文
Consolidated Cash Flow Statement
In RMB
Item Jan-Jun 2014 Jan-Jun 2013
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 501,429,191.92 584,003,955.03
Write-back of tax received - -
Other cash received concerning operating activities 422,104,140.58 489,681,616.68
Subtotal of cash inflow arising from operating activities 923,533,332.50 1,073,685,571.71
Cash paid for purchasing commodities and receiving labor service 418,136,407.31 415,836,299.40
Cash paid to/for staff and workers 58,940,436.65 56,387,263.90
Taxes paid 30,742,279.61 12,703,196.28
Other cash paid concerning operating activities 25,625,379.93 83,328,497.89
Subtotal of cash outflow arising from operating activities 533,444,503.50 568,255,257.47
Net cash flows arising from operating activities 390,088,829.00 505,430,314.24
II. Cash flows arising from investing activities:
Net cash received from disposal of fixed, intangible and other
192,000.00 320,000.00
long-term assets
Other cash received concerning investing activities and disposal of subsidiaries
- -
and other units
Other cash received concerning investing activities - -
Subtotal of cash inflow from investing activities 192,000.00 320,000.00
Cash paid for purchasing fixed, intangible and other long-term assets 22,717,931.92 8,534,944.45
Cash paid for investment - 8,000,000.00
Net cash received from subsidiaries and other units - -
Other cash paid concerning investing activities - -
Subtotal of cash outflow from investing activities 22,717,931.92 16,534,944.45
Net cash flows arising from investing activities -22,525,931.92 -16,214,944.45
III. Cash flows arising from financing activities
Cash received from absorbing investment - -
Cash received from loans 2,124,923,209.20 1,539,000,000.00
Other cash received concerning financing activities 5,000,000.00 -
Subtotal of cash inflow from financing activities 2,129,923,209.20 1,539,000,000.00
Cash paid for settling debts 2,198,961,917.89 1,788,000,000.00
Cash paid for dividend and profit distributing or interest paying 102,738,500.13 149,063,841.88
Other cash paid concerning financing activities - -
Subtotal of cash outflow from financing activities 2,301,700,418.02 1,937,063,841.88
Net cash flows arising from financing activities -171,777,208.82 -398,063,841.88
IV. Influence on cash due to fluctuation in exchange rate 70,043.55 -146,601.70
V. Net increase of cash and cash equivalents 195,855,731.81 91,004,926.21
Add: Balance of cash and cash equivalents at the period -begin 538,054,829.52 526,852,121.41
VI. Balance of cash and cash equivalents at the period -end 733,910,561.33 617,857,047.62
36
深圳南山热电股份有限公司 2014 年半年度报告全文
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
Cash flow statement of parent company
In RMB
Item Jan-Jun 2014 Jan-Jun 2013
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 246,894,180.60 275,919,064.65
Write-back of tax received - -
Other cash received concerning operating activities 363,882,004.24 383,857,550.04
Subtotal of cash inflow arising from operating activities 610,776,184.84 659,776,614.69
Cash paid for purchasing commodities and receiving labor service 173,636,002.04 58,304,818.15
Cash paid to/for staff and workers 35,681,103.73 30,165,482.18
Taxes paid 14,316,543.11 5,645,697.86
Other cash paid concerning operating activities 94,508,969.12 216,822,943.17
Subtotal of cash outflow arising from operating activities 318,142,618.00 310,938,941.36
Net cash flows arising from operating activities 292,633,566.84 348,837,673.33
II. Cash flows arising from investing activities:
Net cash received from disposal of fixed, intangible and other
- -
long-term assets
Net cash received from disposal of subsidiaries and other units - -
Other cash received concerning investing activities - -
Subtotal of cash inflow from investing activities - -
Cash paid for purchasing fixed, intangible and other long-term assets 375,242.58 1,082,953.00
Cash paid for investment - 8,000,000.00
Net cash received from subsidiaries and other units - -
Other cash paid concerning investing activities - -
Subtotal of cash outflow from investing activities 375,242.58 9,082,953.00
Net cash flows arising from investing activities -375,242.58 -9,082,953.00
III. Cash flows arising from financing activities
Cash received from absorbing investment - -
Cash received from loans 1,539,000,000.00 1,039,000,000.00
Other cash received concerning financing activities 5,000,000.00 -
Subtotal of cash inflow from financing activities 1,544,000,000.00 1,039,000,000.00
Cash paid for settling debts 1,579,000,000.00 1,158,000,000.00
Cash paid for dividend and profit distributing or interest paying 66,873,223.57 70,056,691.78
Other cash paid concerning financing activities - -
Subtotal of cash outflow from financing activities 1,645,873,223.57 1,228,056,691.78
Net cash flows arising from financing activities -101,873,223.57 -189,056,691.78
IV. Influence on cash due to fluctuation in exchange rate -501.62 -629.19
V. Net increase of cash and cash equivalents 190,384,599.07 150,697,399.36
Add: Balance of cash and cash equivalents at the period -begin 264,557,683.68 204,114,395.05
37
深圳南山热电股份有限公司 2014 年半年度报告全文
VI. Balance of cash and cash equivalents at the period -end 454,942,282.75 354,811,794.41
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
38
深圳南山热电股份有限公司 2014 年半年度报告全文
Consolidated Statement on Changes of Owners’ Equity
In RMB
Amount in Jan-Jun 2014 Amount in 2013
Equity attributable to Shareholder of parent company Equity attributable to Shareholder of parent company
Item Minority’s Total owners’ Minority’s Total owners’
Capital Surplus Capital Surplus
Share capital Retained profit equity equity Share capital Retained profit equity equity
reserve reserves reserve reserves
I. Balance at the end of 602,762,596.0 362,670,442.4 332,908,397.6 302,714,103.8 198,724,012.9 1,799,779,552. 602,762,596.0 363,633,446.8 332,908,397.6 249,614,987.3 173,891,856.0 1,722,811,283.
the last year 0 6 0 1 6 83 0 4 0 6 2 82
Add: Changes of
- - - - - - - - - - - -
accounting policy
II. Balance at the 602,762,596.0 362,670,442.4 332,908,397.6 302,714,103.8 198,724,012.9 1,799,779,552. 602,762,596.0 363,633,446.8 332,908,397.6 249,614,987.3 173,891,856.0 1,722,811,283.
beginning of this year 0 6 0 1 6 83 0 4 0 6 2 82
III. Increase/ Decrease -101,470,978.7
- - - -75,247,848.71 -26,223,130.04 - -963,004.38 - 53,099,116.45 24,832,156.94 76,968,269.01
in this year 5
-101,470,978.7
(I) Net profit - - - -75,247,848.71 -26,223,130.04 - - - 53,099,116.45 20,280,063.91 73,379,180.36
5
(II) Other consolidated
- - - - - - - - - - - -
income
-101,470,978.7
Subtotal of (I) and (II) - - - -75,247,848.71 -26,223,130.04 - - - 53,099,116.45 20,280,063.91 73,379,180.36
5
(III) Owners devoted
- - - - - - - - - - - -
and capital decreased
1. Owners devoted
- - - - - - - - - - - -
capital
2. Purchase of minority - - - - - -
39
深圳南山热电股份有限公司 2014 年半年度报告全文
shareholders’ equity
3. Other - - - - - - - - - - - -
(IV) Profit distribution - - - - - - - - - - - -
(V) Carrying forward
- - - - - - - - - - - -
internal owners equity
(VI)Other - - - - - - - -963,004.38 - - 4,552,093.03 3,589,088.65
IV. Balance at the end of 602,762,596.0 362,670,442.4 332,908,397.6 227,466,255.1 172,500,882.9 1,698,308,574. 602,762,596.0 362,670,442.4 332,908,397.6 302,714,103.8 198,724,012.9 1,799,779,552.
the Period 0 6 0 0 2 08 0 6 0 1 6 83
Person in charge of the Company: CFO: Person in charge of Financial Department: Re-check: Tabulator:
40
Statement on Changes of Owners’ Equity of Parent Company
In RMB
Amount in Jan-Jun 2014 Amount in 2013
Item Capital Total owners’ Surplus Total owners’
Share capital Surplus reserves Retained profit Share capital Capital reserve Retained profit
reserve equity reserves equity
I. Balance at the end of
602,762,596.00 288,769,132.47 332,908,397.60 454,517,163.58 1,678,957,289.65 602,762,596.00 288,769,132.47 332,908,397.60 390,843,018.74 1,615,283,144.81
the last year
Add: Changes of
- - - - - - - - - -
accounting policy
II. Balance at the
602,762,596.00 288,769,132.47 332,908,397.60 454,517,163.58 1,678,957,289.65 602,762,596.00 288,769,132.47 332,908,397.60 390,843,018.74 1,615,283,144.81
beginning of this year
III. Increase/ Decrease in
- - - -26,411,819.71 -26,411,819.71 - - - 63,674,144.84 63,674,144.84
this year
(I) Net profit - - - -26,411,819.71 -26,411,819.71 - - - 63,674,144.84 63,674,144.84
(II) Other consolidated
- - - - - - - - - -
income
Subtotal of (I) and (II) - - - -26,411,819.71 -26,411,819.71 - - - 63,674,144.84 63,674,144.84
(III) Owners devoted and
- - - - - - - - - -
capital decreased
1. Owners devoted capital - - - - - - - - - -
2. Other - - - - - - - - - -
(IV) Profit distribution - - - - - - - - - -
1. Withdrawal of surplus
- - - - - - - - - -
reserves
2. Other - - - - - - - - - -
(V) Carrying forward
- - - - - - - - - -
internal owners’ equity
1. Capital reserves
- - - - - - - - - -
conversed to share capital
13
2. Surplus reserves
- - - - - - - - - -
conversed to share capital
IV. Balance at the end of
602,762,596.00 288,769,132.47 332,908,397.60 428,105,343.87 1,652,545,469.94 602,762,596.00 288,769,132.47 332,908,397.60 454,517,163.58 1,678,957,289.65
the Period
Person in charge of the Company: CFO: Person in charge of Financial Department: Re-check: Tabulator:
14
Shenzhen Nanshan Power Co., Ltd.
Notes to financial statement of Semi-Annual Report 2014
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 on 25 November 1993, upon the approval of General Office of Shenzhen
Municipal Government with Document Shen Fu Ban Fu [1993] No.897.
After approved by Document Shen Zheng Ban Fu [1993] No.179 issued by Shenzhen Securities Regulatory Office, on
3 January 1994, the Company offered 40,000,000 RMB common shares and 37,000,000 domestically listed foreign
shares in and out of China. And the RMB common shares (A-stock) and domestically listed foreign listed shares
(B-stock) were listed in Shenzhen Securities Exchange successively on July 1, 1994 and Nov. 28, 1994.
Headquarter of the Company located in Shenzhen, Guangdong Province.
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．Preparation basis of Financial Statements
The Group’s financial statements have been prepared based on the going concern assumption. The financial statements
have been prepared based on actual transactions and events, in accordance with the accounting standards for business
enterprises promulgated by the Ministry of Finance of PRC on 15 February 2006 and 38 specific accounting standards,
the subsequently promulgated application guidelines of the Accounting Standards for Business Enterprises,
interpretations and other related rules of the Accounting Standards for Business Enterprises (hereinafter referred to as
“ASBEs”), and the disclosure requirements of the “Regulation on the Preparation of Information Disclosures of
Companies Issuing Public Shares, No. 15: General Requirements for Financial Reports” (revised in 2010) of China
Securities Regulatory Commission.
The Group’s financial statements have been prepared on an accrual basis in accordance with the ASBEs. Except for
certain financial instruments and investment property, the financial statements are prepared under the historical cost
convention. In the event that depreciation of assets occurs, a provision for impairment is made accordingly in
accordance with the relevant regulations.
III. Declaration of obedience to corporate accounting principles
The Financial Statements are up to requirements of corporate accounting principles, and also a true and thorough
reflection to the Group together with its financial information as financial position on 30 June 2014, and the Company
13
together with its operation results, and cash flow for the first half of the year 2014. In addition, the financial statements
of the Group also comply with, in all material respects, the disclosure requirements of the “Regulation on the
Preparation of Information Disclosures of Companies Issuing Public Shares, No. 15: General Requirements for
Financial Reports” revised by the China Securities Regulatory Commission in 2010 and the notes thereto.
IV. The main accounting policies and accounting estimates
1. Accounting period
Accounting period of the Group divide into annual and medium-term, and the medium-term is the reporting period that
shorter than one completed accounting year. The Group’s accounting year is Gregorian calendar year, namely from 1 st
January to 31st December.
2．Bookkeeping standard currency
RMB is the currency in the Group’s main business economic environment and the bookkeeping standard one, which is
adopted in preparation of the financial statements.
3．Accounting methods for consolidation of enterprises
Enterprise combination refers to a trading or event that two or over two independent enterprise/s combined to one
reporting body. The combination was divided into enterprise consolidation under the same control and the one not
under the same control.
(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. For a business combination involving
enterprises under common control, the party that, on the combination date, obtains control of another enterprise
participating in the combination is the absorbing party, while that other enterprise participating in the combination is a
party being absorbed. The combination date is the date on which one combining enterprise effectively obtains control
of the other combining enterprises.
Assets and liabilities obtained by the absorbing party are measured at their carrying amount at the combination date as
recorded by the party being merged. The difference between the carrying amount of the net assets obtained and the
carrying amount of the consideration paid for the combination (or the aggregate nominal value of shares issued as
consideration) is charged to the capital reserve (share capital premium). If the capital reserve (share capital premium) is
not sufficient to absorb the difference, any excess shall be adjusted against retained earnings.
Cost incurred by the absorbing party that is directly attributable to the business combination shall be charged to profit
or loss in the period in which they are incurred.
(2) Consolidation of enterprises not under the same control
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. For a business
combination not involving enterprises under common control, the party that, on the acquisition date, obtains control of
another enterprise participating in the combination is the acquirer, while that other enterprise participating in the
combination is the acquiree. The acquisition date is the date on which the acquirer effectively obtains control of the
acquiree.
14
For business combination involving entities not under common control, the cost of a business combination is the
aggregate of the fair values, on the date of acquisition, of assets given, liabilities incurred or assumed, and equity
instruments issued by the acquirer to be paid by the acquirer, in exchange for control of the acquire plus agency fee
such as audit, legal service and evaluation consultation and other management fees charged to the profit or loss for the
period when incurred. As equity or bond securities are issued by the acquirer as consideration, any attributable
transaction cost is included in their initial costs. Involved or contingent consideration charged to the combination cost
according to its fair value on the date of acquisition, the combined goodwill would be adjusted if new or additional
evidence existed about the condition on the date of acquisition within twelve months after the acquisition date, which is
required to adjust the contingent consideration. The combination cost incurred by the acquirer and the identifiable net
assets acquired from the combination are measured at their fair values. Where the cost of a business combination
exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets on the acquisition date, the
difference is recognized as goodwill. Where the cost of a business combination is less than the acquirer’s interest in the
fair value of the acquiree’s identifiable net assets, the acquirer shall first reassess the measurement of the fair value of
the acquiree’s identifiable assets, liabilities and contingent liabilities and the measurement of the cost of combination.
If after such reassessment the cost of combination is still less than the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets, the difference is charged to profit or loss for the period.
Where the acquiree’s deductible temporary difference acquired by the acquirer is not yet recognized as it does not
satisfy the recognition conditions of the deferred income tax assets on the acquisition date, but new or additional
information proves that the relevant circumstances have already existed on the acquisition date within twelve months
after the acquisition date, which estimates that the economic benefits incurred from the deductible temporary difference
at the acquisition date of acquirer can be realized, then the relevant deferred income tax assets will be recognized, and
the goodwill will be reduced at the same time, if the goodwill is not sufficient to be absorbed, any excess shall be
recognized in the profit or loss for the period. Except as disclosed above, the deferred income tax assets related to the
business combination are charged to the profit or loss for the period.
For a business combination not under common control is finished by a stage-up approach with several transactions,
these several transactions will be judged whether they fall within “transactions in a basket” in accordance with the
judgment standards on “transactions in a basket” as set out in the Notice of the Ministry of Finance on Issuing
Accounting Standards for Business Enterprises Interpretation No. 5 (Cai Kuai [2012] No. 19) (see Note IV. 4(2)). If
they fall within “transactions in a basket”, they are accounted for with reference to the descriptions as set out in the
previous paragraphs of this section and Note IV. 10 “Long-term equity investments”, and if they do not fall within
“transactions in a basket”, they are accounted for in separate financial statements and consolidated financial statements:
In separate financial statements, the initial equity investment cost is the aggregate of the carrying amount of the equity
investment in the acquiree held prior to the acquisition date and the investment cost newly added as at the acquisition
date. Any other comprehensive income attributable to the equity interest in the acquiree prior to the acquisition date is
transferred to investment income upon disposal of the investment.
In consolidated financial report, 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 other consolidation
income related to them should transferred into current investment income at purchased date.
15
4. Preparation methods for corporate consolidated statements
(1) Determining principle for consolidated financial report scope
The scope is determined on the basis of control. The control is right to decide the invested enterprise’s accounting and
operation policies and obtain the interest according to the invested enterprise’s operation. The consolidated scope
includes the Group and all the subsidiaries. Subsidiary is referring to the enterprise or the subject controlled by the
Company.
(2)Preparation methods for corporate consolidated statements
Subsidiaries are consolidated from the date on which the Group obtains net assets and the effective control of decision
making of production and operation are deconsolidated from the date that such control ceases. For disposal of
subsidiaries, the operating results and cash flows of such subsidiaries before the date of disposal are properly included
in the consolidated income statement and consolidated cash flow statements; for disposal of subsidiaries during the
reporting period, no adjustment shall be made to the opening balance of the consolidated balance sheet. For those
subsidiaries acquired through business combination not under common control, the operating results and cash flows
after the acquisition date have been properly included in the consolidated income statements and consolidated cash
flow statements. No adjustments shall be made to the opening balance and the comparative figures of the consolidated
financial statements. For those subsidiaries acquired through business combination under common control and acquiree
absorbed through combination, the operating results and cash flows from the beginning of the consolidation period to
the consolidation date are also presented in the consolidated income statement and the consolidated cash flow
statements. The comparative figures presented in the consolidated financial statements are also adjusted accordingly.
The financial statements of the subsidiaries are adjusted in accordance with the accounting policies and accounting
period of the Company in the preparation of the consolidated financial statements, where the accounting policies and
the accounting periods are inconsistent between the Company and the subsidiaries. For subsidiaries acquired from
business combination not under common control, the financial statements of the subsidiaries will be adjusted according
to the fair value of the identifiable net assets at the acquisition date.
All intra-group significant balances, transactions and unrealized profit are eliminated in the consolidated financial
statements.
As for the subsidiary’s shareholders’ equity and the parts that does not owned the Group in current net gains/losses,
listed out independently as minority shareholders’ equity and minority shareholders gains/losses in item of
shareholders’ equity and net profit contained in consolidated financial statement separately. 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.
For control rights loss in original subsidiary for partial equity investment 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, reckoned into the current investment income of control rights loss.
The other consolidation income related to original subsidiary’s equity investment will transfer to current investment
income while control rights loss. The remaining equity interests are measured subsequently according to “Accounting
16
Standard for Business Enterprises No. 2 – Long-term Equity Investments” or “Accounting Standard for Business
Enterprises No. 22 – Recognition and Measurement of Financial Instruments”. See Note IV.10 “Long-term equity
investments” or Note IV.7 “Financial instruments” for details.
When the Company disposes of equity investment in a subsidiary by a stage-up approach with several transactions
until the control over the subsidiary is lost, it shall determine whether these several transactions related to the disposal
of equity investment in a subsidiary until the control over the subsidiary is lost fall within “transactions in a basket”.
Usually, these several transactions related to the disposal of equity investment in a subsidiary are accounted for as
transactions in a basket when the terms, conditions and economic impacts of these several transactions meet the
following one or more conditions: (i) these transactions are entered into at the same time or after considering their
impacts on each other; (ii) these transactions as a whole can reach complete business results; (iii) the occurrence of a
transaction depends on at least the occurrence of an other transaction; (iv) an individual transaction is not deemed as
economic, but is deemed as economic when considered with other transactions. If they are not transactions in a basket,
each of which are accounted for in accordance with applicable rules in “partial disposal of long-term equity investment
of a subsidiary without losing control over a subsidiary” (see Note IV. 10 (2) (iv)) separately, and “the control over a
subsidiary is lost due to partial disposal of equity investment or other reasons” (see the preceding paragraph). When
several transactions related to the disposal of equity investment in a subsidiary until the control over the subsidiary is
lost fall within transactions in a basket, each of which is accounted for as disposal of a subsidiary with a transaction
until the control over a subsidiary is lost; however, the different between the amount of disposal prior to the loss of
control and the net assets of a subsidiary attributable to the disposal investment shall be recognized as other
comprehensive income in consolidated financial statements and transferred to profit or loss for the period at the time
when the control is lost.
5. Determination criteria of cash and cash equivalent
Cash and cash equivalents of the Group include cash on hand, deposits readily available for payment purpose and
short-term (normally fall due within three months from the date of acquisition) and highly liquid investments held the
Group which are readily convertible into known amounts of cash and which are subject to insignificant risk of value
change.
6. Foreign currency business
The current rate of the trading day is adopted in the initial recognition of the foreign exchange.
Foreign monetary items are converted at the current rate on the assets/liabilities statements’ day, for the exchange
difference due to inconsistency of the current exchange rate on that day and in the initial recognition or on the last
balance sheet day, in addition to: (1) the foreign specific borrowing difference up to the capitalization conditions
reckoned into the relevant assets cost via capitalization; (2) difference of the hedging instruments for avoidance of the
foreign exchange risk handled by the hedging accounting methods; (3) difference of the non-monetary items available
for sale (i.e Shares) 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.
17
7. Financial instruments
(1)Recognition of fair value for financial assets and financial liabilities
The fair value is sum for assets exchange or debts payment between the trading parties in fair dealings. As for
instrument in active market, the fair value is adopted according to the quotation in the active market. Quote in active
market refers to the price easy to obtain regularly from exchange; broker’s agency, industry association and pricing
service authority etc., and such quote represent a price that actually occurred in market trading during the fair
transaction. 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.
(2) Classification, recognition and measurement of financial assets
By way of buying and selling the financial assets in a regular way, recognition and derecognition are carried out
according to the accounts on the transaction day. Financial assets are divided into financial assets at fair value through
profit or loss, held-to-maturity investments, loans and accounts receivable and available for-sale financial assets when
they are initially recognized. Financial assets are initially recognized at fair value. For financial assets classified as fair
value through profit or loss, relevant transaction costs are directly recognized in profit or loss for the period. For
financial assets classified as other categories, relevant transaction costs are included in the amount initially recognized.
① Financial assets carried at fair value through profit or loss for the current period
They include financial assets held for trading and financial assets designated as at fair value through profit or loss for
the current period.
Financial assets may be classified as financial assets held for trading if one of the following conditions is met: A. the
financial assets is acquired or incurred principally for the purpose of selling it in the near term; B. the financial assets is
part of a portfolio of identified financial instruments that are managed together and for which there is objective
evidence of a recent pattern of short-term profit-taking; or C. the financial assets is a derivative, excluding the
derivatives designated as effective hedging instruments, the derivatives classified as financial guarantee contract, and
the derivatives linked to an equity instrument investment which has no quoted price in an active market nor a reliably
measured fair value and are required to be settled through that equity instrument.
A financial asset may be designated as at fair value through profit or loss upon initial recognition only when one of the
following conditions is satisfied: A. Such designation eliminates or significantly reduces a measurement or recognition
inconsistency that would otherwise result from measuring assets or recognizing the gains or losses on them on different
bases; or B. The financial asset forms part of a group of financial assets or a group of financial assets and financial
liabilities, which is managed and its performance is evaluated on a fair value basis, in accordance with the Group’s
documented risk management or investment strategy, and information about the grouping is reported to key
management personnel on that basis.
Financial assets carried at fair value through profit or loss for the current period is subsequently measured at fair value.
The gain or loss arising from changes in fair value and dividends and interest income related to such financial assets
are charged to profit or loss for the current period.
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② Held-to-maturity investments
They are non-derivative financial assets with fixed maturity dates and fixed or determinable payments that the
Company has positive intent and ability to hold to maturity.
Held-to-maturity investments are subsequently measured at amortized cost using the effective interest method. Gain or
loss on derecognition, impairment or amortization is recognized through profit or loss for the current period.
The effective interest method is a method of calculating the amortized cost of a financial asset and of allocating interest
income or expense over each period based on the effective interest of a financial asset or a financial liability (including
a group of financial assets or financial liabilities). The effective interest is the rate that discounts future cash flows from
the financial asset or financial liability over its expected life or (where appropriate) a shorter period to the carrying
amount of the financial asset or financial liability.
In calculating the effective interest rate, the Company will estimate the future cash flows (excluding future credit losses)
by taking into account all contract terms relating to the financial assets or financial liabilities whilst considering various
fees, transaction costs and discounts or premiums which are part of the effective interest rate paid or received between
the parties to the financial assets or financial liabilities contracts.
③ Loans and receivables
They are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.
Financial assets, including bills receivable, accounts receivable, the Group classifies interest receivable, dividends
receivable and other receivables as loans and receivables.
Loans and receivables are measured subsequently at the amortized cost by using the effective interest rate method.
Gains or losses incurred at the time of derecognition, impairment or amortization are charged to profit or loss for the
current period.
④ Available-for-sale financial assets
They include non-derivative financial assets that are designated in this category on initial recognition, and the financial
assets other than the financial assets at fair value through profit and loss, loans and receivables and held-to-maturity
investments.
The closing cost of available-for-sale debt instruments are determined based on amortized cost method, which means
the amount of initial recognition less the amount of principle already repaid, add or less the accumulated amortized
amount arising from the difference between the amount initially recognized and the amount due on maturity using
effective interest rate method, and less the amount of impairment losses recognized. The closing cost of
available-for-sale equity instruments is equal to its initial acquisition cost.
Available-for-sale financial assets are subsequently measured at fair value. The gain or loss on change in fair value are
recognized as other comprehensive income and charged to capital reserves, except for impairment loss and exchange
differences arising from foreign monetary financial assets and amortized cost which are accounted for through profit or
loss for the current period. The financial assets will be transferred out of the financial assets on derecognition and
19
accounted for through profit or loss for the current period.
Interests received from available-for-sale financial assets held and the cash dividends declared by the investee are
recognized as investment income.
(3)Impairment of financial assets
Except for financial assets accounted at fair value and variation accounted into current gain/loss account, the Group
undertakes 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 Group performs impairment test separately on individual financial assets with major amounts; for financial assets
without major amounts, the Group 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.
① Impairment of held-to-maturity investments and loans and receivables
The carrying amount of financial assets measured as costs or amortized costs are subsequently reduced to the present
value discounted from its projected future cash flow. The reduced amount is recognized as impairment loss and
recorded as profit or loss for the period. After recognition of the impairment loss from financial assets, if there is
objective evidence showing recovery in value of such financial assets impaired and which is related to any event
occurring after such recognition, the impairment loss originally recognized shall be reversed to the extent that the
carrying value of the financial assets upon reversal will not exceed the amortized cost as at the reversal date assuming
there is no provision for impairment.
② Impairment of available-for-sale financial assets
In the event that decline in fair value of the available-for-sale equity instrument is regarded as “severe decline” or
“non-temporary decline” on the basis of comprehensive related factors, it indicates that there is impairment loss of the
available-for-sale equity instrument.
When the available-for-sale financial assets impair, the accumulated loss originally included in the capital reserve
arising from the decrease in fair value was transferred out from the capital reserve and included in the profit or loss for
the period. The accumulated loss that transferred out from the capital reserve is the balance of the acquired initial cost
of asset, after deduction of the principal recovered, amortized amounts, current fair value and the impairment loss
originally included in the profit or loss.
After recognition of the impairment loss, if there is objective evidence showing recovery in value of such financial
assets impaired and which is related to any event occurring after such recognition in subsequent periods, the
impairment loss originally recognized shall be reversed. The impairment loss reversal of the available-for-sale equity
instrument will be recognized as other consolidated income, and the impairment loss reversal of the available-for-sale
debt instrument will be included in the profit or loss for the period.
20
When an equity investment that is not quoted in an active market and the fair value of which cannot be measured
reliably, or the impairment loss of a derivative financial asset linked to the equity instrument that shall be settled by
delivery of that equity instrument, then it will not be reversed.
(4) Recognition basis and measurement method for transfer of financial assets
As for the financial assets up to the following conditions, the recognition termination is available: ①Termination of the
contract right to take the cash flow of the financial assets; ② transferred to the transferring-in part nearly all risk and
compensation; ③ all risk and compensation neither transferred nor retained, and with the give-up of the control over
the financial assets.
As for financial assets of almost all risk and compensation neither transferred nor retained, and without the give-up of
the control over the financial assets, it was recognized according to the extension of the continual entry into the
transferred financial assets and relevant liabilities are correspondingly recognized. The continual entry into the
transferred financial assets is risk level which the enterprise faces up to due to the assets changes.
As for the whole transfer of the financial assets up to the recognition termination conditions, the book value of the
transferred assets, together with the difference between the consideration value and the accumulative total of the fair
value change of the other consolidated income, is reckoned into the current gain/loss.
As for the partial transfer of the financial assets up to the recognition termination conditions, the book value of the
transferred assets is diluted on the relative fair value between the terminated part and the un-terminated part; and
reckoned into the current loss/gain is the difference between the sum of the consideration value and the accumulative
sum of the valuation change ought to be diluted into the recognition termination part but into the other consolidated
income, and the above diluted book value, is reckoned into the current loss/gain.
For financial assets that are transferred with recourse or endorsement, the Group needs to determine whether the risk
and rewards of ownership of the financial asset have been substantially transferred. If the risk and rewards of
ownership of the financial asset have been substantially transferred, the financial assets shall be derecognized. If the
risk and rewards of ownership of the financial asset have been retained, the financial assets shall not be derecognized.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset, the
Group shall assess whether the control over the financial asset is retained, and the financial assets shall be accounted
for according to the above paragraphs.
(5) Categorizing and measuring of financial liabilities
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 are initially recognized at fair value.
For financial liabilities classified as fair value through profit or loss, relevant transaction costs are directly recognized
in profit or loss for the period. For financial liabilities classified as other categories, relevant transaction costs are
included in the amount initially recognized.
① Financial liabilities at fair value through profit or loss for the period
The criteria for a financial liability to be classified as held for trading and designated as financial liabilities at fair value
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through profit or loss are the same as those for a financial asset to be classified as held for trading and designated as
financial assets at fair value through profit or loss.
Financial liabilities at fair value through profit or loss for the period are subsequently measured at fair value. The gain
or loss arising from changes in fair value and dividends and interest income related to such financial liabilities are
included in profit or loss for the period.
② Other financial liabilities
Derivative financial liabilities which are linked to equity instruments that are not quoted in an active market and the
fair value of which cannot be measured reliably measured, and which shall be settled by delivery of equity instruments
are subsequently measured at cost. Other financial liabilities are subsequently measured at amortized cost using the
effective interest method. Gains or losses arising from derecognition or amortization is recognized in profit or loss for
the period.
③ Financial Guarantee Contracts
Financial guarantee contracts other than those designated as financial liabilities at fair value through profit or loss are
initially recognized at fair value, and shall be subsequently measured at the higher of the following: the amount
determined in accordance with Accounting Standard for Business Enterprises No. 13 “Contingencies” and the amount
initially recognized less cumulative amortization recognized in accordance with the principles set out in Accounting
Standard for Business Enterprises No. 14 “Revenue”.
(6)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.
(7) Derivatives and embedded derivatives
Derivative instruments are initially recognized at fair value on the date on which a derivative contract is entered into
and are subsequently measured at fair value. Any gains or losses arising from changes in fair value of derivatives are
taken directly to profit or loss for the period, except for derivative instruments that are designated as hedging
instruments and which are highly effective in hedging, gains or losses arising from changes in their fair value are taken
to the profit or loss for the period in accordance with the hedge accounting requirement based on the nature of hedging
relationships.
For combined instruments contain embedded derivatives which are not designated as financial assets or financial
liabilities at fair value through profit or loss, and the embedded derivative and the main contract does not have a
material relation in terms of risk and economic attributes, and when an individual instrument which is the same as the
22
embedded derivative can be defined as derivative, the embedded derivative shall be separated from the combined
instrument and treated as an individual derivative. If the embedded derivative cannot be separately measured at
acquisition or subsequent balance sheet date, the combined instrument shall be designated as financial assets or
financial liabilities at fair value through profit or loss.
(8)Balance-out between the financial assets and liabilities
As the Group 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)Equity instrument
The equity instrument is the contract to prove the holding of the surplus stock of the assets with the deduction of all
liabilities in the Group. 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 Group’s all distribution (shares dividend excluded) to the holders of the equity instrument will decrease the
shareholders’ equity. The Group does not recognize the fair value change sum of the stock instrument.
8. Account receivable
Account receivable included account receivable and other account receivable.
(1)Accounts receivable with significant amount and single provision for bad debt
Determination basis and
amount standard of The single account receivable above RMB 2 million is recognized as single substantive account
items with single receivable
significant amount
Accrual methods of bad The Company takes the independent impairment test on the single substantive account. As for the
account preparation for account receivable without the impairment in the test, it is included in the account receivable
single substantive portfolio of the similar credit risk characters for the impairment test. As for the account receivable
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
(2) Providing of bad debt provisions on account receivable by combination
Recognition basis of combination
account receivable with individual minor The Company believed that the account receivable with individual minor
amount and with individual major amount but amount and with individual major amount but without impairment found
without impairment found after separately after separately testing has a lower credit risk. The Company withdrawal no
testing bad debt provision unless evidence of major credit risk on certain account
receivable been found.
(3) Accounts receivable with minor amount and single provision for bad debt
If there is evidence proving that the credit risk of certain account receivable
Reasons for bad debt provision single is big, the bad debt provision for account receivable should be accrued
individually.
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Methods for bad debt provision Specific Identification Method
9. Inventory
(1) Categories of inventory
The Company’s inventory mainly consists of fuels, raw materials and developing products in process
and so on.
(2) Valuation method of inventory acquired and delivered
The inventories are initially measured at cost. The costs of developing products include land grant
fee, expenditures for auxiliary facilities, expenses on construction and installation, borrowing
costs incurred before the completion of the subject project and other related expenses during the
course of the development. Other cost of inventories comprises purchase costs, processing costs
and other costs incurred in bringing the inventories to their present location and condition.
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.
(3) Recognition of net realizable value of inventory, and accrual methods of preparation for
depreciation
On the balance sheet day, the inventory is measured by the lower one between the cost and the net
realizable value. As the net realizable value is lower than the cost, the inventory depreciation
provision is accrued. 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.
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.
(4)The inventory system is perpetual inventory system.
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10. Long-term equity investment
(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 purchase 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.
(2) Follow-up measurement and gain/loss recognition
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; Long-term
equity investment with joint control of or significant influence on the investee is accounted for using equity method.
Long-term equity investment without control or joint control of or significant influence on the investee and with a fair
value that can be reliably measured is accounted for as available-for-sale financial assets or financial assets carried at
fair value through profit or loss for the period.
In addition, long-term equity investment to the invested units that control by the Company adopted the cost method for
calculation in financial statement.
① Long-term equity investment checked by the cost
Upon the cost check, the investment is valuated on the initial cost. In addition to the actual prices or the announced but
yet undistributed cash dividend or profit in consideration valuation, the current investment return is recognized by the
announced cash dividend or profit by the invested units.
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 policies and accounting
25
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.
③Acquisition of minority equity
When preparing consolidated financial statements, the difference between the increase in long-term equity investment
due to acquisition of minority interest of a subsidiary and the share of net asset of the subsidiary since the acquisition
date (or combination date) calculated under the new ownership ratio shall be adjusted to the capital surplus, when
capital surplus is insufficient, the excess shall be adjusted to retained profits.
④ Disposal of long-term equity investment
In these consolidated financial statements, where the parent company disposes part of its subsidiary without loss of
control, the difference between the consideration received and the share of net asset for the disposed portion of
long-term equity investment shall be recognized in shareholders’ equity; where the parent company disposes part of its
subsidiary with loss of control, the accounting treatment should be in accordance with the accounting policies stated at
Note IV 4 (2) “Preparation of consolidated financial statements”.
For disposal of long-term equity investment in other situations, the difference between the considerations received and
the carrying amount of the disposed investment shall be recognized in profit or loss; for long- term equity investment
accounted for using equity method, the other comprehensive income recognized in shareholder’s equity shall be
reclassified to profit or loss on pro rata basis upon disposal. The retained interest is recognized at its carrying amount
as long-term equity investment or other relevant financial assets, and subsequently measured in accordance with the
accounting policies on long-term equity investment or financial assets previously stated. The retrospective adjustment
shall be made in accordance with the relevant provisions if the retained interest is accounted for using the equity
method instead of the cost method.
(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 have 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.
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(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.
11. 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.
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.
12. Fixed assets
(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.
27
Concerning the follow-up expenses related to fixed assets, if the relevant economy benefit of fixed
assets probably in-flow into the Company and can be measured reliably, 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.
(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 depreciation
Item Life expectancy Salvage value rate
rate
Houses and buildings 20-year 10% 4.50%
Equipment (fuel machinery group
excluded) 15-20-year 10% 4.5%-6%
Equipment--fuel machinery group The work quantity
(note) 10% method
Transportation tools 5-year 10% 18%
Other equipment 5-year 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: gas turbine generator set is provided with depreciation under workload method, namely to determine the
depreciation amount per hour of gas turbine generator set based on equipment value, predicted net remaining value and
predicted generation hours. Details are set out as follows:
Depreciation amount
Name of the Company Fixed assets
(RMB/Hour)
Generating unit 1# 4,225.09
The Company Generating unit 3# 4,401.76
Generating unit 7# 4,407.11
Shenzhen New Power Industrial Co., Ltd. (“New
Generating unit 10# 3,954.47
Power Company”)
Shen Nan Dian (Zhongshan) Power Co., Ltd. Generating unit 1# 3,856.98
(“Zhongshan Power Company”) Generating unit 3# 3,799.49
Shen Nan Dian (Dongguan) Weimei Power Co., Ltd. Generating unit 1# 4,107.76
(“Weimei Power Company”) Generating unit 3# 3,850.07
(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
28
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.
(4) Recognition basis and measurement method of fixed assets under finance lease
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards
of ownership to the lessee. Title may or may not eventually be transferred. The depreciation policy for fixed asset held
under finance lease is consistent with that for its owned fixed asset. When a leased asset can be reasonably determined
that its ownership will be transferred at the end of the lease term, it is depreciated over the period of expected use;
otherwise, the leased asset is depreciated over the shorter period of the lease term and the period of expected use.
(5)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
any 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.
13. 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.
14. 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.
29
The other borrowing expenses are recognized as expenses when occurred.
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.
15. Intangible assets
(1) Intangible assets
Intangible assets including land-use right and software 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-certain 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.
(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.
16. 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.
17. Impairment of non-current non-financial assets
The Group will judge if there is any indication of impairment as at the balance sheet date in respect of non-current
non-financial assets such as fixed assets, construction in progress, intangible assets with an infinite useful life,
investment properties measured at cost, and long-term equity investments in subsidiaries, joint ventures and associates.
If there is any evidence indicating that an asset may be impaired, recoverable amount shall be estimated for impairment
test. Goodwill, intangible assets with an indefinite useful life and intangible assets beyond working conditions will be
tested for impairment annually, regardless of whether there is any indication of impairment.
30
If the impairment test result shows that the recoverable amount of an asset is less than its carrying amount, the
impairment provision will be made according to the difference and recognized as an impairment loss. The recoverable
amount of an asset is the higher of its fair value less costs of disposal and the present value of the future cash flows
expected to be derived from the asset. An asset’s fair value is the price in a sale agreement in an arm’s length
transaction. If there is no sale agreement but the asset is traded in an active market, fair value shall be determined based
on the bid price. If there is neither sale agreement nor active market for an asset, fair value shall be based on the best
available information. Costs of disposal are expenses attributable to disposal of the asset, including legal fee, relevant
tax and surcharges, transportation fee and direct expenses incurred to prepare the asset for its intended sale. The present
value of the future cash flows expected to be derived from the asset over the course of continued use and final disposal
is determined as the amount discounted using an appropriately selected discount rate. Provisions for assets impairment
shall be made and recognized for the individual asset. If it is not possible to estimate the recoverable amount of the
individual asset, the Group shall determine the recoverable amount of the asset group to which the asset belongs. The
asset group is the smallest group of assets capable of generating cash flows independently.
For the purpose of impairment testing, the carrying amount of goodwill presented separately in the financial statements
shall be allocated to the asset groups or group of assets benefiting from synergy of business combination. If the
recoverable amount is less than the carrying amount, the Group shall recognize an impairment loss. The amount of
impairment loss shall first reduce the carrying amount of any goodwill allocated to the asset group or set of asset
groups, and then reduce the carrying amount of other assets (other than goodwill) within the asset group or set of asset
groups, pro rata on the basis of the carrying amount of each asset.
An impairment loss recognized on the aforesaid assets shall not be reversed in a subsequent period in respect of the
restorable value.
18. 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 fulfill the
current responsibility. If the monetary value has significant influence, than recognized the best estimation amount
based on discount of predicted future 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.
19. Share-based Payments
(1) Types of share-based payments
Share-based payment refers to a transaction in which an enterprise grants equity instruments or undertakes
equity-instrument- based liabilities in return for services from employee or other parties. The share-based payments
31
shall consist of equity-settled share-based payments and cash-settled share-based payments.
① Equity-settled Share-based Payment
The equity-settled share-based payment in return for employee services shall be measured at the fair value of the equity
instruments granted to the employees as at the date of grant. For equity instruments that cannot be exercised until the
services are fully rendered during vesting period or specified performance targets are met, within the vesting period,
the fair value of such instrument shall, based on the best estimate of the number of exercisable instruments, be
calculated with the straight- line method and recognized in relevant costs or expenses. For equity instruments that may
be exercised immediately after the grant, the fair value of such instrument shall, on the date of the grant, be recognized
in relevant costs or expenses with the increase in the capital reserve accordingly.
The equity-settled share-based payment in return for services from other parties, if the fair value of services from other
parties can be reliably measured, shall be measured at the fair value of such services as at the date of acquisition; if the
fair value of services from other parties cannot be reliably measured but the fair value of equity instruments can be
reliably measured, shall be measured at the fair value of such equity instruments as at the date of acquisition of such
services recognized in relevant costs or expenses with the increase in the capital reserve accordingly.
②Cash-settled Share-based Payment
The cash-settled share-based payment shall be measured at the fair value of liabilities identified on the basis of shares
or other equity instruments undertaken by the Group. For the instruments that may be exercised immediately after the
grant, the fair value shall, on the date of the grant, be recognized in relevant costs or expenses and the liabilities shall
be increased accordingly. For instruments that cannot be exercised until the services are fully provided during vesting
period or specified performance targets are met, on each balance sheet date within the vesting period, the services
acquired in the current period shall, based on the best estimate of the number of exercisable instruments, be recognized
in relevant costs or expenses and the corresponding liabilities at the fair value of the liability incurred by the Group.
The Group shall, on each balance sheet date and on each account date prior to the settlement of the relevant liabilities,
re-measure the fair values of the liabilities and include the changes in the profit or loss for the period.
(2) Basis for determining the best estimate of the number of exercisable instruments
On each balance sheet date within the vesting period, the Group shall determine the best estimate based on the latest
number of employees able to exercise their options and revise the estimated number of exercisable equity instruments.
(3) Accounting treatment in respect of the implementation, modification and termination of share-based payment
scheme
If any modification made by the Group to the share-based payment scheme increases the fair value of the equity
instrument awarded, services obtained shall be increased accordingly. The increase in fair value of such equity
instrument equals to the difference between the fair values before and after the date of modification. If any
modification reduces the total fair value of share-based payment or is otherwise unfavorable to employees, services
obtained shall be treated as if such modification had never been made, unless the Group has canceled part or the entire
equity instrument award.
32
During the vesting period, where an equity instrument award is cancelled, it is treated as if it had vested on the date of
cancellation, and any expense not yet recognized for the award is included immediately into the profit or loss for the
period and capital reserve is recognized. Where employees or other parties are permitted to choose to fulfill
non-vesting conditions but have not fulfilled during the vesting period, equity instrument award are deemed cancelled.
20. 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. Detail recognization according to specific revenue:
(1) Power sales revenue
The Group generates electricity by thermal power, and realizes sales through incorporation into Guangdong power grid.
As for power sales, the Group realizes revenue when it produces electricity and obtains the grid power statistics table
confirmed by the power bureau.
(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, not
including the capital invested by the government as owner. Government grant divided into the government grant
related to assets and the government grant related to income.
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 deferred 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 deferred 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.
33
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.
Pursuant to the calculation method required by the Notice on Issuance of Provisional Collection of Gas and Fuel
Processing Subsidy to Support the Peak Power Scheme of Local Burning Machine Power Plants (SFB No.74[2010])
issued by people municipality of Shenzhen, the Reply for Confirming the Power Generation Subsidy Scheme for
Shenzhen Burning Machine Power Plants for 2011 (SZSITIC No.207[2010]) and the Notice on Continuous Collection
of Gas and Fuel Processing Subsidy to Support the Peak Power Generation Losses of Local Burning Machine Power
Plants (SZSITIC No.206[2011]), the Company recognized fuel subsidy income and recognized as Government grant
income in line with the Notice on Issuance of Provisional Rules for Management over Power Subsidy of Shenzhen
Local Fuel (Gas) Machine sets (SFB No.54[2009]) issued by people municipality of Shenzhen.
According to the notice on collection of gas and fuel process fee on temporary basis (YFH[2008]No.31) issued by the
municipal government of Guangdong and the provisions of relevant documents issued by Guangdong price bureau,
Zhongshan Power Company and Weimei Power Company would confirm Government grant income when it receives
subsidy for gas and fuel process fee or relevant certificate in respect of collection of gas and fuel process fee subsidy.
22 Deferred income tax asset/ deferred income tax liability
Income tax expense includes current income tax and deferred income tax.
(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.
(2) Deferred income tax asset & deferred income tax liability
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.
Generally, 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.
34
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 portability obtained taxable amount that should be deducted
the deductible temporary differences.
At the balance sheet day, those deferred 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 transition and event of other consolidation income or
shareholders’ 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. Leasing
Finance lease is to virtually transfer all risks and rewards related to ownership of asset. Leases other than finance lease
are operating leases.
(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.
(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
35
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.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.
25. Other Main Accounting Policies, Estimations and Preparation Method
- Debt restructures
(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.
(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 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.
36
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.
26. Changes of main accounting policy and accounting estimation
There was no change of main accounting policy and accounting estimation in the reporting period.
27. Corrections of preliminary accounting errors
There was no correction of preliminary accounting errors in the reporting period.
28. Major judgment made in adopting accounting policies and key assumption and
Uncertainties adopted in accounting estimation
When using the accounting policies discussed in note IV, the Group needs to made judgment, estimation and
assumption for carrying value of certain items which cannot be measured adequately due to inherent uncertainty of
economic activities. Such judgment, estimation and assumption are based on historical experiences of the Group’s
management, together with consideration of other relevant factors. The actual results may be different from the
Group’s estimation. The Group conducts regular re-review on the aforesaid judgment, estimation and assumption on a
continued operation basis. If the change of accounting estimation only affect current period, the affected amount is
recognized in the period when change occurs. If the change affects current and future periods both, the affected amount
is recognized in the period when change occurs and future periods.
- Key assumption and uncertainties adopted in accounting estimation
As of the balance sheet date, the key assumptions and uncertainties that may result in material adjustments to carrying
values of assets and liabilities of future periods mainly include:
(1)Fixed assets are provided for depreciation by output method
The Group recognizes depreciation for unit electricity based on values of power generation machine sets, projected
power sales volume and projected net remaining value, and provides for depreciation according to depreciation of unit
electricity and actual power sales volume. Taking into account the prevailing industry policies, technologies,
37
consumption, allocation method of power management authorities and past experiences, and the Group management
believes that it is adequate for utilization life of such power generation machine sets, projected power sales volume,
projected net remaining value and provision method for depreciation. If the future actual power sales volume differs
substantially from the projected one, the Group would make adjustment to unit electricity depreciation, which would
bring affects to the depreciation expenses included in profit and loss for the current and future periods.
(2)The provisional estimated value of fixed assets
As for the power generation machine sets and related buildings reaching the condition for intended use, due to the long
construction period of power plant projects, high prices and long completion settlement time, they are accounted
provisional based on project budget, project pricing or project actual costs before process of project completion
settlement. And upon such settlement, the Company adjusts the original provisional value according to the actual costs.
If provisional estimated values of power generation machine sets and related buildings differ materially from the actual
costs, the Company may have to make corresponding adjustments to the values of fixed assets.
(3) Provision for bad debts
The Group use allowance method to state bad debt losses according to the accounting policies of accounts receivable.
Impairment of receivables is based on the assessment of the recoverability of accounts receivable. Identification of
impairment of receivables requires management judgments and estimates. The differences between actual results and
the original estimate will affect the book value of accounts receivable as well as the recognition or reversal of provision
for bad debts in the period in which the estimate is changed.
(4) Allowance for inventories
Under the accounting policies of inventories and by measuring at the lower of cost and net realizable value, the Group
makes allowance for inventories that have costs higher than net realizable value or become obsolete and slow moving.
Write-down of inventories to their net realizable values is based on the salability of the evaluated inventory and their
net realizable values. Identification of inventories requires management to make judgments and estimates on the basis
of obtaining conclusive evidence, and considering the purpose of holding inventory and the events after balance sheet
date. The differences between actual results and the original estimate will affect the book value of inventories as well
as the recognition or reversal of provision for inventories in the period in which the estimate is changed.
(5) Deferred income tax assets
If it is likely to obtain sufficient taxable income taxes to offset the benefit deductible, the Group confirmed all the
unused tax losses into the deferred income tax assets. In order to determine the amount of deferred tax assets, the
Group’s management is required to use large judgments as well as tax planning strategies to estimate the time and
amount of the occurrence of the taxable profits in the future.
V. Taxes
1. Main taxation items and its tax rate
Taxation items Calculation bases Tax rate
Balance of current output tax deducting Output tax calculated based on the 11%, 13% or
VAT (Note 1)
current input tax 17% of the sales volume regulated by Tax Law
Business tax (Note1) Business revenue 3% or 5%
City maintenance tax VAT and business tax actually paid 1%, 5% or 7%
38
Education surtax VAT and business tax actually paid 3%
Local education
VAT and business tax actually paid 2%
surtax
Enterprise income tax Taxable income 16.5% to 25%(Note2)
Value-added amount from transferring
Land VAT state-owned land use right , landing Four level progressive rates
construction and its affiliates
Calculated by the original value of real
1.2% for the remaining sum of real estate; 12% for
Real estate tax estate deducting 30%; rent income of the
the rent income of the real estate
real estate
Land-use tax of town Land occupation actually area 2.5 Yuan ~ 9Yuan per square meter
Note 1: during the period from 1 January 2012 to 31 October 2012, Shenzhen Server Oil Supply Co., Ltd.(hereinafter
referred to as “Shenzhen Server”), subsidiary of the Company, paid business tax at tax rate of 3% in respect of the
transportation income. According to the notice on trial collection of value-added tax instead of business tax for
transportation industry and certain modern service industries in Beijing and other seven provinces and cities issued by
the ministry of finance and State Administration of Taxation (CS(2012)No.71), the aforesaid income of Shenzhen
Server shall be levied with value-added tax at 11% as modern service industry instead of the original business tax since
1 November 2012.
Note2: Tax rate of the enterprise income tax for the Company and its subsidiaries are shown as
follows:
Tax rate of enterprise income tax
Name of the Company and its subsidiaries 2014 2013
The Company 25% 25%
New Power Company 25% 25%
Shenzhen Shennandian Gas Turbine Engineering Technique Co., Ltd.
(“Engineering Co.,) 25% 25%
Shenzhen Server 25% 25%
Shenzhen Shennandian Environment Protection Co., Ltd. (“Environment
Protection Co.,”) 25% 25%
Zhongshan Power Company 25% 25%
Weimei Power Company 25% 25%
SHENNAN ENERGY (SINGAPORE) PTE LTD (“Shennan Singapore”) 20% 20%
Zhongshan Shenzhong Real Estate Development Co., Ltd. (“Shenzhong
Development”) 25% 25%
Zhongshan Shenzhong Real Estate Investment Property Co., Ltd. (“Shenzhong
Property Investment”) 25% 25%
Zhongshan Shennandian Warehouse Co., Ltd. 25% -
HONG KONG SYNDISOME CO., LIMITED (“Syndisome Co., ) 16.50% 16.50%
2. Taxes preferential and approvals
Name of the Relevant regulation and Approval Approval Exemption Period of
Tax
company policies basis institution documents range validity
39
” Notice of adjustment and
Environment perfection on resources VAT free for
Not Not
VAT Protection comprehensive usage and Not applicable sludge
applicable applicable
Company labor VAT policy”(CS treatment
No.115[2011])
” Arrangement of
avoidance of
double-taxation and
Levy income
Enterprise prevention of tax free in
Syndisome Not tax by 10% of Not
income mainland China and Hong Not applicable
Co., applicable total share applicable
tax Kong Special
interests
Administrative
Region”(GSH No.
884[2006])
No enterprise
State Tax Shen Guo
income tax
Enterprise ’Enterprise Income Tax Bureau of Sui Nan Kou
Syndisome should pay for Not
income Law of People’s Republic Nanshan Jiao Bei Zi
Co., the dividend applicable
tax of China” District No.:
before 31
Shenzhen [2011]0011
December 2007
40
VI. Enterprise merger and Consolidated Financial Statement
Particular about subsidiaries
1. Subsidiaries obtained through establishment or investment
In RMB
Other item
Actual balance of
Proportion Proportion Consolidated
Full name of the Register Business investment net
Type of subsidiaries Register capital Business scope shares of voting statement
subsidiaries place nature dated 30 June investment
held (%) right (%) Yes/No
2014 towards
subsidiaries
Self-business of fuel
and agent for
Shenzhen Server import-export; fuel
Limited Liability Shenzhen Trading 53,300,000.00 26,650,000.00 - 50 50 Yes
(Note) and oil storage
business (excluding
product oil)
Technical
development on
New Power Jointed Power wasted-heat usage,
Shenzhen 113,850,000.00 113,850,000.00 - 100 100 Yes
Company enterprise(H.K-capital) generation power generation by
wasted-heat and fuel
power
Fuel power, waste
heat power, power &
Zhongshan Jointed Power
Zhongshan 746,800,000.00 heat supplying , 597,440,000.00 - 80 80 Yes
Power Company enterprise(H.K-capital) generation
leasing of wharf and
oil depot
Technical
consultation and
relevant maintenance
and inspection on
Engineering Jointed Engineering running equipments
Shenzhen 10,000,000.00 13,520,000.00 - 100 100 Yes
Company enterprise(H.K-capital) consultation for the union cycle
power station by fuel
gas and steam, import
and export of goods
and technology
41
Establishment and
Weimei Power Jointed Power
Dongguan US$ 35,040,000.00 operation of natural 208,102,049.76 - 70 70 Yes
Company enterprise(H.K-capital) generation
gas power station
Environment
Jointed
Protection Shenzhen Engineering 79,000,000.00 Sludge drying 79,000,000.00 - 100 100 Yes
enterprise(H.K-capital)
Company
1,500,000.00 Gas turbine and its
Shennan
Limited Liability Singapore Trading spare parts and fuel 6,703,800.00 - 100 100 Yes
Singapore SG$ agent
Zhongshan
Warehousing service,
Shennandian
Limited Liability Zhongshan Warehousing 100,000.00 oil depot and pier 100,000.00 - 100 100 Yes
Warehouse Co.,
lease
Ltd.
(2) Subsidiaries obtained through merger under no common control
In RMB
Other item
Actual balance of
Proportion Proportion Consolidated
Full name of the Type of Register Business investment net
Register capital Business scope shares of voting statement
subsidiaries subsidiaries place nature dated 30 June investment
held (%) right (%) Yes/No
2014 towards
subsidiaries
Real estate investment,
property management,
Shenzhong Real estate
Limited Liability Zhongshan 177,800,000.00 sales of self-owned - - 75 75 Yes
Development development
commercial houses,
rental and investment
Real estate investment,
property management,
Shenzhong Property Real estate
Limited Liability Zhongshan 60,000,000.00 sales of self-owned - - 75 75 Yes
Investment development
commercial houses,
rental and investment
Syndisome Hong Import-export
Limited Liability HK$ 200,000.00 Import-export trading 217,807.27 - 100 100 Yes
Co.,( Note) Kong trading
42
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 to ShenYe Investment Company at the consideration of HK$ 393,885,100.00. According to this Transfer Agreement, ShenYe Investment Company should pay
HK$ 1,000,000.00 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 HK$ 392,885,100.00 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. Explanation on changes in consolidation statement’s scope
Controlling subsidiary Zhongshan Power Company established a wholly-owned subsidiary Zhongshan Shennandian Warehouse Co., Ltd. on 17 February 2014 with business scope of
warehousing service, oil depot and pier lease. Zhongshan Shennandian Warehouse Co., Ltd. included in consolidated statement of the Company since date of founded.
43
VII. Notes to Consolidated Financial Statement
1. Monetary fund
In RMB
2014-6-30 Year-begin
Item Foreign Exchange RMB Foreign Exchange RMB
currency Rate Amount currency Rate Amount
Cash on hand：
-RMB - - 109,631.73 - - 119,506.34
-HKD 82,656.91 0.7938 65,609.12 82,656.91 0.7862 64,984.86
-USD 995.22 6.1528 6,123.39 995.22 6.0969 6,067.76
-EUO 1,017.87 8.3946 8,545.09 1,017.87 8.4189 8,569.35
Bank savings:
-RMB - - 725,696,362.39 - - 529,632,012.65
-HKD 749,715.68 0.7938 595,124.42 750,264.79 0.7862 589,858.18
-USD 1,062,118.03 6.1528 6,535,374.34 1,069,383.85 6.0969 6,519,926.40
-SGD 20,879.81 4.9744 103,864.53 44,879.81 4.7845 214,727.45
Other monetary
capital:
-RMB - - 787,029.52 - - 5,895,170.62
-USD 470.81 6.1528 2,896.80 657.04 6.0969 4,005.91
Total 733,910,561.33 543,054,829.52
Note: Other monetary capital at period-end of the Group including guarantee margin and draft
margin with 0 Yuan in total (31 December 2013: 5,000,000 Yuan)
2. Account receivable
(1) Account receivable classified according to types:
In RMB
2014-6-30 Year-begin
Bad debt Bad debt
Book Balance Book Balance
provision provision
Type
Prop Prop Prop Prop
Amo Amo Amo Amo
ortio ortio ortio ortio
unt unt unt unt
n (%) n (%) n (%) n (%)
3,474 3,47 3,474 3,47
Account receivable with individual major amount and 100.0 100.0
,613. 0.40 4,61 ,613. 0.39 4,61
withdrawal bad debt provision independently 0 0
06 3.06 06 3.06
Accounts receivable with minor amount and accounts 864,0 876,3
receivable with major amount found no devaluation 28,64 99.49 - - 68,54 99.50 - -
after individual devaluation test 0.18 7.41
946, 946,
Account receivable with individual minor amount but 946,9 100.0 946,9 100.0
0.11 915. 0.11 915.
withdrawal bad debt provision independently 15.10 0 15.10 0
10 10
868,4 4,42 880,7 4,42
100.0 100.0
Total 50,16 1,52 0.51 90,07 1,52 0.50
0 0
8.34 8.16 5.57 8.16
(2) Age analysis of account receivable:
- 44 -
In RMB
2014-6-30 Year-begin
Account age
Amount Proportion (%) Amount Proportion (%)
Within 1 year 750,501,048.01 86.42 634,467,247.62 72.04
1 to 2 years 113,345,468.31 13.05 241,719,175.93 27.44
2 to 3years 84,236.10 0.01 84,236.10 0.01
Over 3 years 4,519,415.92 0.52 4,519,415.92 0.51
Total 868,450,168.34 100.00 880,790,075.57 100.00
(3)Withdrawal of bad debt provision
① Account receivable with individual major amount and withdrawal bad debt provision independently
In RMB
Withdrawal
Item Carrying amount Bad debt provision Reasons
proportion (%)
Shenzhen Petrochemical
Products Bonded Trading Co., 3,474,613.06 3,474,613.06 Un-collectible
100.00
Ltd.
② Account receivable with individual minor amount but withdrawal bad debt provision independently at period-end
In RMB
Withdrawal
Item Book Balance Bad debt provision Reasons
proportion (%)
Account of engineering
800,000.00 800,000.00 100% Un-collectible for overdue
receivable
Amount of oil sales receivable 146,915.10 146,915.10 100% Un-collectible for overdue
Total 946,915.10 946,915.10 100%
(4) There are no account receivable of the shareholders or related party who hold over 5 %( 5% included) voting rights in
report period.
(5)Top 5 companies in account receivables
In RMB
Proportion in total account
Name of the company Relationship Amount Age
receivable (%)
Bureau of Finance of Shenzhen Government 382,334,30 Within 2
44.02
Municipality institution 1.00 years
Bureau of Finance of Dongguan Government 179,389,35 Within 1
20.66
Municipality institution 7.36 year
156,455,34 Within 1
Guangdong Power Grid Company Non-related 18.02
2.70 year
Bureau of Finance of Zhongshan Government 140,153,51 Within 1
16.14
Municipality institution 8.48 year
Government 8,429,998.2 Within 1
Shenzhen Water Bureau 0.97
institution 5 year
866,762,51
Total 99.81
7.79
- 45 -
3. Account paid in advance
(1) Account paid in advance classified according to age:
In RMB
2014-6-30 Year-begin
Account age
Amount Proportion (%) Amount Proportion (%)
Within 1 year 6,524,259.17 97.71 10,842,745.79 98.56
1 to 2 years - - - -
2 to 3years - - - -
Over 3 years 152,604.20 2.29 158,089.18 1.44
Total 6,676,863.37 100.00 11,000,834.97 100.00
(2) Top five clients in account paid in advance
In RMB
Clients Relationship Amount Time Unbalanced account
Shenzhen Nangang Power Engineering Non-associate 4,675,0 Within Amount paid in advance
Co., Ltd. supplier 00.00 1 year for procurement
Shenzhen Nangang Power Equipment Non-associate 702,000 Within Amount paid in advance
Installation Co., Ltd. supplier .00 1 year for procurement
Shandong Huayuan Power Station Non-associate 471,000 Within Amount paid in advance
Equipment Co., Ltd. supplier .00 1 year for procurement
Install Branch of Hangzhou Boiler Group Non-associate 240,000 Within Amount paid in advance
Co., Ltd. supplier .00 1 year for procurement
Dongguan Dongsheng Energy Non-associate 87,840. Within Amount paid in advance
Conservation Engineering Co., Ltd. supplier 00 1 year for procurement
6,175,8
Total 40.00
(3) No shareholders’ with over 5% (including 5%) voting rights of the Company held in account paid in advance in Period
4. Other account receivable
(1) Other account receivable classified according to type:
In RMB
2014-6-30 Year-begin
Book Bad debt Book
Bad debt provision
Balance provision Balance
Type
Prop Prop Prop Prop
Am ortio Am ortio Am ortio ortio
Amount
ount n ount n ount n n
(%) (%) (%) (%)
20,3 20,3 20,3
Account receivable with individual major
41,6 33.3 41,6 100. 41,6 30.6 100.
amount and withdrawal bad debt provision 20,341,666.46
66.4 3 66.4 00 66.4 6 00
independently
6 6 6
- 46 -
Accounts receivable with minor amount and 36,2 41,5
accounts receivable with major amount found 26,4 59.3 55,3 62.6
- - -
no devaluation after individual devaluation 76.8 6 01.4 2 -
test 0 6
Account receivable with individual minor 4,46 3,82 4,46
85.7 85.7
amount but withdrawal bad debt provision 0,45 7.31 4,48 0,45 6.72 3,824,483.31
4 4
independently 0.11 3.31 0.11
61,0 24,1 66,3
28,5 100. 66,1 39.6 57,4 100. 36.4
Total 24,166,149.77
93.3 00 49.7 0 18.0 00 2
7 7 3
(2)Other account receivable classified according to age:
In RMB
2014-6-30 Year-begin
Account age
Amount Proportion (%) Amount Proportion (%)
Within 1 year 36,145,397.19 59.23 31,353,466.20 47.25
1 to 2 years 447,203.95 0.73 307,173.95 0.46
2 to 3years 23,886.75 0.04 23,886.75 0.04
Over 3 years 24,412,105.48 40.00 34,672,891.13 52.25
Total 61,028,593.37 100.00 66,357,418.03 100.00
(3)Withdrawal of bad debt provision
①other account receivable with individual major amount and withdrawal bad debt provision independently
In RMB
Withdrawal
Item Carrying amount Bad debt provision Reasons
proportion (%)
Huiyang County Kangtai
14,311,626.70 14,311,626.70 100.00 Un-collectible
Industrial Company
Shandong Jinan Power
3,560,000.00 3,560,000.00 100.00 Un-collectible
Equipment Factory
Individual income tax 2,470,039.76 2,470,039.76 100.00 Un-collectible
Total 20,341,666.46 20,341,666.46 100.00
②Period-end account receivable with individual minor amount but withdrawal bad debt provision independently:
In RMB
Withdrawal
Bad debt
Item Book Balance proportion Reasons
provision
(%)
Un-collectible for
Dormitory amount receivable 2,083,698.16 1,736,004.16 83.31 those which was
overdue
Un-collectible for
Deposit receivable 1,312,974.95 1,312,974.95 100.00 those which was
overdue
- 47 -
Un-collectible for
Bureau of Finance of
219,192.00 21,919.20 10.00 those which was
Zhongshan Municipality
overdue
Un-collectible for
Administrative Office of
50,000.00 5,000.00 10.00 those which was
Nanshan District Shenzhen
overdue
Un-collectible for
GE COMPANY 35,000.00 7,000.00 20.00 those which was
overdue
Un-collectible for
Other 759,585.00 741,585.00 97.63 those which was
overdue
Total 4,460,450.11 3,824,483.31 85.74
(4) There are no other account receivable of the shareholders who hold over 5 %( 5% included) voting rights in report
period.
(5) Top 5 companies in other account receivable
In RMB
Relationsh Proportion in total other account
Name of the company Amount Duration
ip receivable (%)
Related 14,660,361 Over 3
Huidong Server party .44 years 24.02
Huiyang County Kangtai Industrial Non-relat 14,311,626 Over 3
Company ed .70 years 23.45
Related 12,500,000 Within 1
Huidong Server managed account party .00 year 20.48
Shandong Jinan Power Equipment Non-relat 3,560,000. Over 3
Factory ed 00 years 5.83
Non-relat 2,470,039. Over 3
Individual income tax
ed 76 years 4.05
47,502,027
Total
.90 77.84
5. Inventory
In RMB
2014-6-30 Year-begin
Item Depreciation Depreciation
Book Balance Carrying value Book Balance Carrying value
provision provision
Fuels 11,196,072.72 6,882,792.16 4,313,280.56 9,504,975.68 6,882,792.16 2,622,183.52
Raw 40,232,692.8 40,232,692.8
142,151,138.89 101,918,446.01 140,213,301.50 99,980,608.62
materials 8 8
Land Space
Needed to 1,236,742,782.1 45,603,631.8 1,191,139,150.2 1,231,814,926.0 45,603,631.8 1,186,211,294.1
Developmen 1 5 6 1 5 6
t (Note)
1,390,089,993.7 92,719,116.8 1,297,370,876.8 1,381,533,203.1 92,719,116.8 1,288,814,086.3
Total
2 9 3 9 9 0
Note: 1) The land cost for development of Shenzhong Development Co., and Shenzhong Property Investment.
- 48 -
2) In the balance of land space needed to development at period-end, the capitalizing loan expenses amounting to
RMB 168,902,319.91 (as at 31 December 2013: RMB 168,902,319.91). The capitalizing loan expense of this year
was 0 Yuan.
6. Other current assets
In RMB
Item 2014-6-30 Year-begin
VAT input tax deductible 516,851,797.26 565,589,166.99
- 49 -
7. Long-term equity investment
Details of long-term equity investment:
In RMB
Explanation
on the
Proportion Proportion incongruity
of share of voting in share Impairment Cash
Invested Calculation Investment holding in rights in holding Impairment provision bonus
Year-begin Increase/decrease(+,-) 2014-6-30
company method cost invested invested proportion provision of accruing this
company company and voting this year year
(%) (%) proportion
in invested
company
Shenzhen
Petro-Chemical
Bonded-Trade
Cost Not
Co., Ltd. 2,500,000.00 2,500,000.00 4 4 2,500,000.00 - -
method - 2,500,000.00 applicable
(Petrol-Chemical
Bonded
Company)
CPI Jiangxi
Nuclear Power
Cost Not
Co., Ltd. 57,315,000.00 57,315,000.00 5 5 - - -
method 57,315,000.00 applicable
(“Jiangxi Nuclear
Power Co”)
Equity
Huidong Server 3,126,000.40 26,366,000.00
method -1,270,147.52 25,095,852.48
Total 62,941,000.40 86,181,000.00 -1,270,147.52 84,910,852.48 2,500,000.00 - -
Less:
depreciation 2,500,000.00
- 2,500,000.00
reserves
Net long-term
equity 83,681,000.00 -1,270,147.52 82,410,852.48
investment
- 50 -
8. Investment real estate
In RMB
Item Year-begin Increased Decreased 2014-6-30
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 and
5,721,340.93 221,342.76 - 5,942,683.69
accumulated amortization
1.House, buildings 5,721,340.93 221,342.76 - 5,942,683.69
2.Land use right - - - -
III. Total book net value 3,986,674.03 3,765,331.27
1.House, buildings 3,986,674.03 3,765,331.27
2.Land use right - -
IV. Total depreciation reserves - - - -
1.House, buildings - - - -
2.Land use right - - - -
V. Total carrying value 3,986,674.03 3,765,331.27
1.House, buildings 3,986,674.03 3,765,331.27
2.Land use right - - -
9. Fixed assets
Change of fixed assets
In RMB
Item Year-begin Increased Decreased 2014-6-30
I. Total original book value 4,429,774,970.53 4,841,986.60 635,810.00 4,433,981,147.13
Including: House and buildings 454,255,565.83 - - 454,255,565.83
Machinery equipment 3,899,140,957.00 4,634,026.08 - 3,903,774,983.08
Transportation tools 29,102,370.62 - 626,000.00 28,476,370.62
Other equipment 47,276,077.08 207,960.52 9,810.00 47,474,227.60
II. Total accumulated
2,486,621,269.59 66,674,891.19 515,889.00 2,552,780,271.78
depreciation
Including: House and buildings 224,355,006.93 9,001,875.69 - 233,356,882.62
Machinery equipment 2,197,996,174.52 56,359,059.47 - 2,254,355,233.99
Transportation tools 25,440,642.41 264,810.90 507,060.00 25,198,393.31
Other equipment 38,829,445.73 1,049,145.13 8,829.00 39,869,761.86
III. Total net book value 1,943,153,700.94 1,881,200,875.35
Including: House and buildings 229,900,558.90 220,898,683.21
Machinery equipment 1,701,144,782.48 1,649,419,749.09
Transportation tools 3,661,728.21 3,277,977.31
Other equipment 8,446,631.35 7,604,465.74
IV. Total impairment provision 50,836,768.89 50,836,768.89
Including: House and buildings 16,783,716.84 16,783,716.84
Machinery equipment 33,866,281.52 33,866,281.52
Transportation tools 64,276.68 64,276.68
Other equipment 122,493.85 122,493.85
Total carrying value 1,892,316,932.05 1,830,364,106.46
- 51 -
Including: House and buildings 213,116,842.06 204,114,966.37
Machinery equipment 1,667,278,500.96 1,615,553,467.57
Transportation tools 3,597,451.53 3,213,700.63
Other equipment 8,324,137.50 7,481,971.89
- 52 -
10. Construction in process
(1) Details of construction in process:
In RMB
2014-6-30 Year-begin
Item Book Depreciation Net book Book Depreciation Net book
Balance reserves value Balance reserves value
41,245,6 14,815,695.8 26,429,9 41,245,6 14,815,695.8 26,429,9
Oil to Gas Works
25.24 2 29.42 25.24 2 29.42
Heat and power projects of recycling 9,274,76 9,274,76 9,327,82 9,327,82
- -
economy 1.46 1.46 1.98 1.98
Cogeneration of heat and electricity 11,114,21 11,114,2 10,659,8 10,659,8
- -
Project 6.71 16.71 64.11 64.11
9E combustion unit low-nitrogen 45,770,9 45,770,9
- - - -
combustion technical reform 29.72 29.72
1,528,01 1,528,01
Sludge drying project - - - -
4.00 4.00
1,346,53 1,346,53 746,812. 746,812.
Others - -
9.66 9.66 30 30
108,752, 14,815,695.8 93,936,3 63,508,1 14,815,695.8 48,692,4
Total
072.79 2 76.97 37.63 2 41.81
(2) Changes of significant projects in construction
In RMB
Fixed
Other
Year-begi assets
Item Budget Increase decrea 2014-6-30
n transferr
se
ed
74,400,00 41,245,62 41,245,625
Oil to Gas Works - - -
0.00 5.24 .24
30,000,00 9,327,821 53,060 9,274,761.
Heat and power projects of recycling economy - -
0.00 .98 .52 46
10,659,86 454,352.6 11,114,216
Cogeneration of heat and electricity Project - -
4.11 0 .71
1,528,014 1,528,01
Sludge drying project - 0.00
.00 4.00
9E combustion unit low-nitrogen 45,770,92 45,770,929
- - -
combustion technical reform 9.72 .72
746,812.3 599,727.3 1,346,539.
Others -
0 6 66
63,508,13 46,825,00 1,528,01 53,060 108,752,07
Total
7.63 9.68 4.00 .52 2.79
- 53 -
11. Intangible assets
In RMB
2014-6-30Book
Item Year-begin Increase Decrease
Balance
I. Total book original value 94,554,652.14 404,952.99 - 94,959,605.13
Including: Land use right 91,253,625.27 - - 91,253,625.27
Software 3,301,026.87 404,952.99 - 3,705,979.86
II. Total accumulated amortization 35,630,040.16 1,420,437.88 - 37,050,478.04
Including: Land use right 33,329,998.76 1,200,923.86 - 34,530,922.62
Software 2,300,041.40 219,514.02 - 2,519,555.42
III. Total depreciation reserves - - - -
Including: Land use right - - - -
Software - - - -
IV. Total carrying value 58,924,611.98 57,909,127.09
Including: Land use right 57,923,626.51 56,722,702.65
Software 1,000,985.47 1,186,424.44
12. Deferred income tax assets
In RMB
Item 2014-6-30 Year-begin
Deferred income tax assets:
Provision for bad debts of accounts receivable 1,105,382.04 1,105,382.04
Other provision for bad debts of accounts receivable 185,396.25 185,396.25
Staff salary payable 729,101.00 729,101.00
Provision for devaluation of long-term equity investment 625,000.00 625,000.00
Other 143,914.82 143,914.82
Total 2,788,794.11 2,788,794.11
13. Details of assets depreciation reserves
In RMB
Decreased
Item Year-begin Increased 2014-6-30
Carry-back Write-off
I. Bad debt provision 28,587,677.93 - - - 28,587,677.93
II. Provision for inventory 92,719,116.89 - - - 92,719,116.89
III. Impairment for long-term
2,500,000.00 - - - 2,500,000.00
equity investment
IV. Impairment for fixed assets 50,836,768.89 - - - 50,836,768.89
V. Impairment for construction
14,815,695.82 - - - 14,815,695.82
in progress
Total 189,459,259.53 - - - 189,459,259.53
14. Other non-current assets
In RMB
Item 2014-6-30 Year-begin
54 - -
Project of LNG (Note) 22,882,181.78 22,882,181.78
Note: the project was jointly constructed by Weimei Power Company and Guangdong Dapeng Liquid Natural Gas
Co., Ltd.(hereinafter referred to as Dapeng LNG). According to the contract signed between the two parties, before
the project involved by this construction acquired approval from the relevant national authorities, the ownership
belongs to both parties. After such approval, Dapeng LNG will acquire LNG project. Thus, Weimei Power
Company recorded it under the item of “other non-current assets”.
15. Short-term loans
In RMB
Item 2014-6-30 Year-begin
Guarantee loans 935,923,209.20 969,961,917.89
Credit loans 1,989,000,000.00 2,029,000,000.00
Total 2,924,923,209.20 2,998,961,917.89
16. Note payable
In RMB
Type 2014-6-30 Year-begin
Bank acceptance 64,000,000.00 50,000,000.00
17. Account payable
(1) Details of account payable:
In RMB
Item 2014-6-30 Year-begin
Natural gas 331,354,439.62 73,471,998.03
Raw materials 3,625,937.74 3,378,921.66
Electricity 770,871.64 1,046,970.91
other 526,543.09 273,218.94
Total 336,277,792.09 78,171,109.54
(2)There is no fund of shareholders with 5 %( including 5%) or more of the voting shares in the Group in the report
period.
(3) Top five clients in account payable
In RMB
Ratio in total
Name Relationship Amount Year account payable
(%)
Guangdong Trade Branch of
Non-related 224,162,937.84 Within 1 year 66.66
CNOOC Gas & Power Group
Guangdong Guoyu Energy Co.,
Non-related 44,533,632.03 Within 1 year 13.24
Ltd.
Dongguan Dongli Gas Co., Non-related 33,823,897.07 Within 1 year 10.06
55 - -
Ltd.
Xinao Energy Trade Co., Ltd. Non-related 21,341,597.99 Within 1 year 6.35
Guangzhou Yuanheng Energy
Non-related 7,651,306.70 Within 1 year 2.28
Co., Ltd.
Total 331,513,371.63 98.58
18. Account received in advance
(1) Details of account received in advance:
In RMB
Item 2014-6-30 Year-begin
Account received in advance for goods - 512,402.70
(2) There is no advance fund of shareholders with 5% (including 5%) or more of the voting shares in the Group in
the report period.
19. Wages payable
In RMB
Item Year-begin Increased Decreased 2014-6-30
I. wages, bonuses, allowances and
37,221,067.44 48,783,690.62 46,871,477.36 39,133,280.70
subsidies
II. Welfare for employee - 37,190.00 37,190.00 -
III. Social insurance 731,059.26 9,822,159.50 9,570,191.02 983,027.74
Including: Medical insurance 132,758.91 2,744,649.49 2,673,114.33 204,294.07
Endowment insurance 437,167.83 6,659,401.85 6,495,698.09 600,871.59
Unemployment insurance 45,961.39 154,868.40 149,549.70 51,280.09
Work injury insurance 109,639.84 235,157.78 226,888.29 117,909.33
Maternity insurance 5,531.29 28,081.98 24,940.62 8,672.65
IV. Housing provident fund 551,355.42 7,096,747.40 7,090,180.08 557,922.74
V. Union funds and staff education
1,607,994.03 979,470.72 682,283.00 1,905,181.75
expenses
VI. Non-monetary welfare 14,516.89 - - 14,516.89
VII. Compensation for labor
302,182.46 - 302,182.46 -
contract termination
VIII. Enterprise annuities 2,916,513.00 - - 2,916,513.00
IX. Other 16,989.23 - 400.00 16,589.23
Total 43,361,677.73 66,719,258.24 64,553,903.92 45,527,032.05
Note: There is no fund in arrears in salaries payable to staff.
20. Taxes payable
In RMB
Item 2014-6-30 Year-begin
VAT 13,076.84 27,275.63
Business tax 1,927,797.85 1,859,727.55
Enterprise income tax -6,260,469.49 14,803,610.02
56 - -
Individual income tax 1,265,232.15 1,661,719.64
Land-use tax of town 1,317,547.33 1,588,507.01
Real estate tax 1,338,592.42 2,521,674.86
Others 1,253,181.62 219,728.85
Total 854,958.72 22,682,243.56
21. Interest payable
In RMB
Item 2014-6-30 Year-begin
Long-term loan interest of installment and interest charges 9,984.99 10,816.67
Interest payable of short-term loan 32,080,997.35 31,079,138.44
HCP 74,022,567.34 67,685,090.69
Total 106,113,549.68 98,775,045.80
22. Other account payable
Details of other account payable
In RMB
Item 2014-6-30 Year-begin
Loan (note ) 206,473,308.65 206,473,308.65
Project expense 52,100,183.42 17,303,421.18
Temporary option contract amount 12,972,512.06 12,848,310.64
Quality guarantee deposit 2,401,369.11 8,463,062.13
Land use right charge 532,838.28 1,027,616.63
Fund of the Board 566,970.25 575,659.27
Other 16,307,739.40 17,142,524.16
Total 291,354,921.17 263,833,902.66
Note: represented the amounts borrowed by Shenzhong Development Company from HCP with the land use right
and fixed assets owned by it as the pledge and represented the amounts borrowed by Shenzhong Development
Company from the Bureau of Finance of Zhongshan Municipality.
23. Accrued liabilities
In RMB
Item Year-begin Increased Decreased 2014-6-30
Guarantee offering outside 27,500,000.00 - - 27,500,000.00
On 29 November 2013, Shenzhen Server and Jiahua Building Products (Shenzhen) Co., Ltd. (Jiahua Building)
signed a supplementary term aiming at equity transfer over equity attribution and division of Yapojiao Dock, which
belongs to Shenzhen Server, Huidong Server, and Huidong Nianshan Town Government as well as its subordinate
Nanshan Group. In order to solve this remaining historic problem, Shenzhen Server saved RMB 12,500,000.00 in
condominium deposit account as guarantee. In addition, Server pledged its 20% of equity holding from Huidong
Server to Jiahua Architecture with pledge duration of 2 years. The amount of collateral on loans could not exceed
RMB 15,000,000.00. As of 30 June 2014, the group is forecast to lose RMB 27,500,000.00concerning this matter.
24. Long-term loans
In RMB
57 - -
Item 2014-6-30 Year-begin
Guarantee loans 6,000,000.00 6,000,000.00
Note: the loans guarantee provided to Environment Protection Co., by the Company, RMB 6,000,000.00.
25. Other non-current liability
In RMB
Item Content 2014-6-30 Year-begin
Government grant with assets
Deferred income 48,897,915.74 50,713,516.50
concerned
Details of deferred incomes:
In RMB
Amount
reckoned in Other Assets
New
Liability Year-begin 2014-6-30 related/income
subsidy related
non-operation changes
revenue
Treasury subsidies for Assets
sludge drying
4,356,250.00 - 127,500.00 - 4,228,750.00
related
Support fund of recycling Assets
economy for sludge drying
11,333,291.07 - 323,501.46 - 11,009,789.61
related
Subsidy for project of
low-nitrogen Assets
transformation for
33,201,802.75 - 1,276,992.42 - 31,924,810.33
related
welcoming the Universiade
Support fund of enterprise Assets
informationalization
453,725.48 - 30,588.24 - 423,137.24
related
Subsidy for energy-saving Assets
technology reform
1,368,447.20 - 57,018.64 - 1,311,428.56
related
Total 50,713,516.50 - 1,815,600.76 - 48,897,915.74
26. Share capital
In RMB
Changes
Item Year-begin Bonus 2014-6-30
Other Subtotal
shares
I. Restricted shares
1.state-owned shares - - - - -
2. shares held by
- - - - -
state-owned companies
3. shares held by other
18,263.00 - - - 18,263.00
domestic investors
4. shares held by foreign
- - - - -
investors
58 - -
Total restricted shares 18,263.00 - - - 18,263.00
II. Unrestricted shares
1. RMB common shares 338,894,012.00 - - - 338,894,012.00
2. Domestically listed
263,850,321.00 - - - 263,850,321.00
foreign shares
3. Overseas listed foreign
- - - - -
shares
4.other - - - - -
Total unrestricted shares 602,744,333.00 - - - 602,744,333.00
III. Total shares 602,762,596.00 - - - 602,762,596.00
27. Capital reserve
In RMB
Item Year-begin Increased Decreased
2014-6-30
Capital premium 233,035,439.62 - -
Including: investors’ capital 215,487,650.42 - - 215,487,650.42
Balance caused by the acquisition of minority
interests
17,547,789.20 - - 17,547,789.20
Other capital surplus 129,635,002.84 - - 129,635,002.84
Including: capital surplus transferred from
original system
129,631,483.51 - - 129,631,483.51
Total 362,670,442.46 - - 362,670,442.46
28. Surplus reserves
In RMB
Item Year-begin Increased Decreased 2014-6-30
legal surplus reserve 310,158,957.87 - - 310,158,957.87
Discretionary surplus
22,749,439.73 - - 22,749,439.73
reserve
Total 332,908,397.60 - - 332,908,397.60
29. Retained profit
In RMB
Item Amount
Retained profit at year-begin 302,714,103.81
Add: net profit attributable to shareholders of parent company -75,247,848.71
Less: withdrawal of statutory surplus reserve -
Common Stock dividend payable -
Retained profit at period-end 227,466,255.10
30. Operating income, operating cost
(1) Operating income, operating cost
In RMB
59 - -
Item Current period Last period
Main business income 526,457,442.05 564,655,995.03
Other business income 940,113.72 820,939.88
Total business income 527,397,555.77 565,476,934.91
Main business cost 754,950,526.23 911,070,410.26
Other business cost 1,514,465.15 93,814.96
Total business cost 756,464,991.38 911,164,225.22
(2) Main business (by industries)
In RMB
Current period Last period
Industry
Operating income Operating cost Operating income Operating cost
Energy Industry 499,061,668.37 727,838,652.89 541,342,937.69 889,160,298.08
Engineering labors and
- 2,742,845.01 510,000.00 2,408,143.85
services
Sludge treatment 27,037,654.80 20,573,089.80 20,730,847.11 14,979,601.46
Other income 358,118.88 3,795,938.53 2,072,210.23 4,522,366.87
Total 526,457,442.05 754,950,526.23 564,655,995.03 911,070,410.26
(3) Main business (by products)
In RMB
Current period Last period
Products
Operating income Operating cost Operating income Operating cost
Electricity sales 499,061,668.37 727,838,652.89 540,526,165.74 888,742,410.93
Heat sales - - 816,771.95 417,887.15
Engineering labors and
- 2,742,845.01 510,000.00 2,408,143.85
services
Sludge drying 27,037,654.80 20,573,089.80 20,730,847.11 14,979,601.46
Other 358,118.88 3,795,938.53 2,072,210.23 4,522,366.87
Total 526,457,442.05 754,950,526.23 564,655,995.03 911,070,410.26
(4) Condition of operating income of top 5 clients
In RMB
Clients Operating income Ratio in total operating income (%)
Guangdong Power Grid Company 499,061,668.37 94.63
Shenzhen Water Bureau 27,037,654.80 5.13
Dongguan Dongchang Petrochemical Co., Ltd. 596,845.38 0.11
RongFengHua Stationery 259,392.00 0.05
Guangdong Dapeng LNG Company Ltd. 137,322.74 0.03
Total 527,092,883.29 99.94
31. Operating tax and surcharges
In RMB
Item Current period Last period
60 - -
Business tax 2,953,299.03 2,695,465.62
206,898.77
City maintenance tax 183,640.11
195,595.16
Others 144,952.00
Total 3,355,792.96 3,024,057.73
32. Management expenses
In RMB
Item Current period Last period
Salary 18,467,978.36 17,853,102.10
Taxes 2,126,376.28 2,056,740.26
Leasing expenses 2,857,978.71 3,141,609.97
Entertainment expense 1,531,724.81 2,154,359.11
Expenses for agency appointment 952,713.04 2,291,932.08
Vehicles expenses 2,220,530.48 1,921,740.43
Expenses from the Board 738,892.81 914,769.80
Housing fund 1,570,856.80 730,403.33
Depreciation expense 1,388,406.49 1,858,052.30
Amortization of intangible assets 1,048,582.24 1,416,697.32
Professional fees 301,730.29 426,528.00
Eco fee 945,405.88 1,007,844.78
Sundry expenses 1,350,674.49 1,445,859.61
Expenses for enterprise culture 181,155.00 459,813.50
Property expense 544,529.04 473,613.00
Office expenses 287,177.34 197,282.09
Endowment insurance 1,784,132.86 1,743,425.34
Communication charge 698,374.15 612,870.23
Business traveling charge 207,873.71 244,357.26
Stock charge 341,009.23 172,268.03
Medical insurance 853,379.29 767,887.23
Labor-union expenditure 406,733.10 350,989.14
Personnel education 214,676.21 89,352.57
Long-term expense for amortized 0.00 24,994.08
Other 2,170,186.02 2,722,249.88
Total 43,191,076.63 45,078,741.44
33. Financial expenses
In RMB
Item Current period Last period
Interest expenditure 103,263,773.91 116,589,477.12
Less: capitalization interests expenses 12,832,567.64
-
Less : interest income 2,164,599.64 2,750,339.44
Exchange gains/losses 127,658.52 -53,829.73
Other 5,613,033.29 1,052,587.97
Total 106,839,866.08 102,005,328.28
61 - -
34. .Return on investment
In RMB
Item Current period Last period
Huidong Server (Note) -1,270,147.52
-
Note: on 9 December 2013, 60% equity of Huidong Server held by controlling subsidiary of the Company
Shenzhen Server was transferred, rests of the 40% equity re-measured by fair value and as for the added value of
identifiable long-term assets on disposal date, depreciation and amortization in the Period amounting as
1,357,635.36 Yuan correspondingly.
35. Non-operating income
In RMB
Item Current period Last period
Government grant 285,388,555.28 371,954,330.36
VAT return on impor&export of natural gas - 10,739,822.79
Profits of disposal of he non-current assets 69,220.00 299,145.30
Other 158,672.22 171,794.87
Total 285,616,447.50 383,165,093.32
Including particulars about governmental subsidies:
In RMB
Item Current period Last period
Income from fuel subsidies 159,976,101.00 183,115,300.00
Subsidies income of fuel processing fee 123,596,853.52 187,360,199.68
Subsidy for project of low-nitrogen transformation
1,276,992.42 1,276,992.42
for welcoming the Universiade
Support fund of enterprise informationalization 30,588.24 30,588.24
Subsidy for energy-saving technology reform 57,018.64 -
Government bond subsidy for sludge drying 127,500.00 127,500.00
Support fund of recycling economy for sludge
323,501.46 43,750.02
drying
Total 285,388,555.28 371,954,330.36
Note 1: Pursuant to the calculation method required by the Notice on Issuance of Provisional Collection of
Gas and Fuel Processing Subsidy to Support the Peak Power Scheme of Local Burning Machine Power
Plants (SFB No.74(2010)) issued by people municipality of Shenzhen, the Reply for Confirming the Power
Generation Subsidy Scheme for Shenzhen Burning Machine Power Plants for 2011 (SZSITIC
No.207(2010)), the Notice on Continuous Collection of Gas and Fuel Processing Subsidy to Support the
Peak Power Generation Losses of Local Burning Machine Power Plants (SZSITIC No.2062011)), the
Notice on Issuance of Provisional Rules for Management over Power Subsidy of Shenzhen Local Fuel (Gas)
Machine sets (SFB No.54(2009)) issued by people municipality of Shenzhen and the Notice on Issuance of
Electricity Subsidy Scheme of Gas-Engine Unit for year of 2013 in Shenzhen (SJMXXDZ Zi No.11 [2014])
issued by Economy, Trade and Information Commission of Shenzhen Municipality, the Company
recognized fuel subsidy income for first half year of 2014 as 159,976,101 Yuan.
62 - -
Note 2: According to the Notice on Collection of Gas and Fuel Process Fee on Temporary Basis
(YFH(2008)No.31) issued by the municipal government of Guangdong Province and accounting
measures of subsidy for gas and fuel process for year of 2013, the subsidy for gas and fuel process
recognized by Zhongshan Power Company and Weimei Power Company for first half year of 2014 was
123,596,853.52 Yuan.
36. Non-operating expense
In RMB
Item Current period Last period
Expenses from external donation 10,000.00 10,000.00
Gains and loss of disposal of fixed assets 196.00 -
Other 184.50 -
Total 10,380.50 10,000.00
37. Income tax expenses
In RMB
Item Current period Last period
Current income tax calculated based on tax laws
1,692,763.26
and relevant regulations -
38. Basic EPS and diluted EPS
(1) Earnings per share
In RMB
Current period Last period
Profit in the Period
Basic EPS Basic EPS
Net profit attributable to common shareholders of the Company -0.12 -0.17
Net profit attributable to common shareholders of the Company after
-0.13 -0.18
deducting non –recurring gains/losses
(2)The Group has no dilution potential common shares held in the Period, thus, the diluted EPS equals to the basic
EPS
39. Notes to item of cash flow statement
(1)Cash received and related to other operation activities
In RMB
Item Current period Last period
Drawback of duties for NG - 10,739,822.79
Income of fuel subsidies 407,770,600.00 474,528,624.40
Margin for gas purchased back from Dapeng 10,032,000.00 -
Time deposit maturity -
Other 4,301,540.58 4,413,169.49
Total 422,104,140.58 489,681,616.68
63 - -
(2)Cash paid for other operating activities
In RMB
Item Current period Last period
Discount paid for public facility supporting - 24,680,608.20
Land premium paid for over capacity - 32,386,269.86
Fee paid for intermediary organs engaged 1,438,036.89 2,173,007.55
Expenses from the Board 739,263.33 815,569.82
Leasing expense 3,756,007.33 2,891,588.07
Entertainment expense 1,458,277.01 1,989,284.91
Vehicles expense 2,502,077.13 1,945,279.17
Expenses for enterprise culture 111,194.00 402,803.50
Communication charge 793,027.80 566,882.56
Environmental expense 1,145,269.18 1,270,267.02
Enterprise annuity 193,262.22 2,120,828.20
Expense for land 1,027,616.63 1,453,650.00
Urban infrastructure supporting fees 409,634.50 -
Expense for line maintenance 260,952.00 263,892.00
Other 11,790,761.91 10,368,567.03
Total 25,625,379.93 83,328,497.89
(3)Cash received from other financing-related activities
In RMB
Item Current period Last period
Margin received 5,000,000.00 -
40. Supplementary information on cash flow statement
(1) Information of regulate the net profit into the cash flow of operating activities:
In RMB
Item Current period Last period
1.Regulate the net profit into the cash flow of operating
activities:
Net profit -101,470,978.75 -113,738,115.14
Add: Asset impairment provision - -
Depreciation of fixed assets 66,159,002.19 70,045,211.41
Amortization of intangible assets 1,420,437.88 1,704,280.68
Amortization of long-term deferred expenses - 24,994.08
Loss from disposing fixed assets, intangible assets and other
-69,024.00 -299,145.30
long-term assets (income)
Abandonment loss from fixed assets - -
64 - -
Financial expenses(income) 106,839,866.08 102,005,328.28
Investment loss(income) 1,270,147.52 -
Decrease of deferred income tax assets(increased) - -
Decrease of inventory(increased) -8,556,790.53 -62,105,802.36
Decrease of receivable operating items(increased) 71,565,968.34 77,776,353.43
Increase of payable operating items(decreased) 252,930,200.27 430,017,209.16
Other -
Net cash flow from operation activities 390,088,829.00 505,430,314.24
2. Major investment and financing activities not involving
cash income and expenditure:
Debt capitalization - -
Convertible company bond due within one year - -
Fixed assets acquired under finance leases - -
3. Net change of cash and cash equivalents:
Balance of cash and cash equivalents at period-end 733,910,561.33 617,857,047.62
Less: Balance of cash and cash equivalents at year-begin 538,054,829.52 526,852,121.41
Net increase of cash and cash equivalents 195,855,731.81 91,004,926.21
(2) Composition of cash and cash equivalents
In RMB
Item 2014-6-30 Year-begin
I. Cash 733,910,561.33 617,857,047.62
Including: cash in hand 189,909.33 248,607.75
Bank savings available for payment needed 732,930,725.68 616,975,538.01
Other monetary capital available for payment needed 789,926.32 632,901.86
II. Cash equivalent - -
III. Balance of cash and cash equivalent at year-end 733,910,561.33 617,857,047.62
65 - -
(VIII)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 VI 1. Subsidiaries of the Company
3. Other related parties of the Company
Other related parties name Relationship between the Company Organization code
Shareholders have major influence on
Energy Group
the Company 19218918-5
Minority shareholders of the
HCP subsidiaries 733112675
Energy Holding Subsidiary of Energy Group 19224115-8
Director of the Company and other senior executives Key management staff Not applicable
4. Related Transactions
(1) Lending money of related party
Jan-Jun in this year:
In RMB
Amount of Commencement Balance dated 30
Related parties Maturity Date Note
lending money date June 2014
Borrowing
HCP 125,316,816.85 2013.01.01 2014.12.31 125,316,816.85 Renewal
HCP 23,750,000.00 2013.01.01 2014.12.31 23,750,000.00 Renewal
HCP 16,250,000.00 2013.01.01 2014.12.31 16,250,000.00 Renewal
HCP 14,335,291.80 2013.01.01 2014.12.31 14,335,291.80 Renewal
HCP 2,500,000.00 2013.01.01 2014.12.31 2,500,000.00 Renewal
Last year:
In RMB
Amount of Commencement Balance dated 30
Related parties Maturity Date
lending money date June 2013 Note
Borrowing:
HCP 125,316,816.85 2012.01.01 2013.12.31 125,316,816.85 Renewal
HCP 23,750,000.00 2012.01.01 2013.12.31 23,750,000.00 Renewal
HCP 16,250,000.00 2012.01.01 2013.12.31 16,250,000.00 Renewal
HCP 14,335,291.80 2012.01.01 2013.12.31 14,335,291.80 Renewal
HCP 2,500,000.00 2012.01.01 2013.12.31 2,500,000.00 Renewal
(2) Fund occupation expenses
66 - -
In RMB
Amount in Jan-Jun 2014 Amount in Jan-Jun 2013
Price Proportion Proportion
Related Transaction Transaction in amount in amount
setting
parties type content Amount of similar Amount of similar
principal
transaction transaction
(%) (%)
Fund
HCP occupation Interest Note 6,337,476.65 100.00 6,337,476.65 100.00
expenses expenses
Note: payment for the use of state funds is calculated according to loan rate of current capital of peer banks.
(3) Account payable/receivable from related parties
Account payable to related parties
In RMB
Item Related parties 2014-6-30 Amount at year-begin
Account received
Huidong Server 14,660,361.44 14,660,361.44
in advance
Co-management account of
12,500,000.00 12,500,000.00
Huidong Server
Subtotal 27,160,361.44 27,160,361.44
Other account
HCP 182,152,108.65 182,152,108.65
payable
Interest payable HCP 74,022,567.34 67,685,090.69
IX. Contingency
In March 2008, the Company and Just-run (Singapore) Private Company (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.
67 - -
From Apr.2008 to Oct.2008, based on the above confirmations, Just-run Company pays to the Company with US$ 2.10
million, the Company includes it into "other payables" item after receives this payment.
On 6 November 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$3,736,958.66 as of November
27th, 2009. The Company replies on January 25th, 2010, which shows that the Company did not accept claims for loss
compensation.
On 31 March 2011, Just-run Company sent another letter to the Company which claimed that they are willing to coordinate
with the Company continuously as for USD 79,962,943.00 we owed them and interests from the day of Nov. 6 of 2008, and
invited the Company to raise up suggestion on this matter, meanwhile Just-run Company stressed to remain all the rights on
this matter. The Company replied them with a letter on Apr. 6 of 2011 which showed we didn’t accept requirements from
Just-run Company about compensation for loss, and agreed to answer their invitation and negotiate based on equality
without influence on rights of both parties.
On 6 February 2012, Jierun sent letter to the Company again, requiring the Company to pay the arrears of USD83,
699,901.66 and the related interests. The Company replied on 10 February 2012 to deny the loss compensation
requirements of Jierun and require Jierun to pay the Company the amount payables of USD300, 000.00 under the
confirmation latter No. 165723967102.11 arising in October 2008 and the interests accrued since 7 November 2008. And
the Company agreed to be invited by Jierun for further negotiation in connection with this dispute provided that interests of
both parties were not influenced. Subsequently, the Company negotiate with Jierun Company, under circucumstance of
changed and/or give up any parties’ right. Ended as the disclosed date for this financial statement, the event has no further
progress. If the negotiation doesn’t succeed, in the judgment of the management of the Company, it is possible to solve this
dispute through justice channel.
On 10 February 2014, Just-run sent a letter to the Company, repeated the claims of paying arrears of US$ 83,699,901.66
and relevant interest that stated in Letters of 6 February 2012. The Company replied on 28 March 2014 for claims to be not
authorized, and asked for paying the payables US$ 300,000.00 under the confirmation No. 165723967102.11 from Just-run
Company that arising in October 2008 and interest since from 7 November 2008, and the Company agrees to negotiate with
Just-run Company for solving the issues on the basis of rights of both parties are not been affected. Up to the date the
Financial Report authorized to disclosed, the event has no further progress. Management of the Company considers that the
issue is open to solve through judicial channel if the negotiations fail to reach.
68 - -
Based on the legal opinions issued by independent qualified lawyers in connection with the aforesaid event, the board of
directors of the Company believes that:
(1)Two confirmation letters and transaction have been terminated by both parties;
(2)Various uncertainties still exist during the process of this issue, so it is not possible to make estimation for the potential
solution approaches and results;
(3)Since the final results cannot be estimated reasonably and reliably currently, projected liabilities shall not be recognized
in the financial statements in the half year of 2014.
The Board of Directors of the Company will promptly review the relevant accounting operation according to the progress
of the above matters.
X. Commitment
1. Capitalization commitment
In RMB
Item 2014-6-30 Year-begin
Signed capital expenditure commitment which was still not
recognized in financial statements
-Construction commitment of long-term assets 28,826,800.00 26,750,000.00
-External investment commitment - -
Total 28,826,800.00 26,750,000.00
Note: Construction commitment of long-term assets refers to the contract of technical supply renovation for 9E gas turbine
low Nox burner that signed by Zhongshan Power, subsidiary of the Company
(2)Commitment on operating lease
Till the balance sheet day, the condition of irrevocable operating lease contract the Group externally signed is as follow:
In RMB
Item 2014-6-30 Year-begin
Minimum lease payments of irrevocable operating lease:
The first year after balance sheet day 6,735,783.50 6,739,925.50
The second year after balance sheet day 6,397,746.50 6,736,681.50
The third year after balance sheet day 3,728,646.50 3,728,646.50
Subsequent years 63,556,377.75 64,308,576.00
Total 80,418,554.25 81,513,829.50
XI. Events Occurring after the Balance Sheet Date
1. At the beginning of 2014, Ministry of Finance based on the Cai Kuai [2014] No.6, No.7, No.8, No.10, No.11, No.13,
No.14 and No.16 respectively issued the “Accounting Standards for Business Enterprise No.39 –Fair value measurement”,
“Accounting Standards for Business Enterprise No.30 –Preparation of financial statement (revised in 2014)”, “Accounting
Standards for Business Enterprise No.9 –Employee compensation(revised in 2014)”, “Accounting Standards for Business
Enterprise No.33 –Consolidated financial statement(revised in 2014)”, “Accounting Standards for Business Enterprise
No.40 – Joint venture arrangements”, “Specification of Financial Liability and Equity Instrument and Regulation of
relevant accounting treatment”, “Accounting Standards for Business Enterprise No.2 –Long-term Equity investment
(revised in 2014)” and “Accounting Standards for Business Enterprise No.41 –Disclosure of Interests in Other Entities”,
69 - -
asking implemented in all enterprises with the accounting standards performed in all enterprises since 1 July 2014, and
encourage the enterprise listed overseas to performed the rules in advance.
The Group performs the above mentioned rules since 1 July 2014, and made changes on relevant accounting policy in line
with the rules that above mentioned.
2.The Company is prepare for a private placement, for uncertained from the placement, in order to protect interest of the
investors and avoid major impact on price of the stock of the Company, in line with relevant regulations from Shenzhen
Stock Exchange, being applied by the Company, stock of the Company suspended since 9 January 2014; up to disclosure
date for the Report, stock of the Company still suspended.
XII. Note to main items of financial statements of the Company
1. Accounts receivable
(1) Accounts receivable classifying according to the category:
In RMB
2014-6-30 Year-begin
Bad debt Bad debt
Book Balance Book Balance
provision provision
Type
Propo A Propo Propo A Propo
Amou rtion mo rtion Amou rtion mo rtion
nt (%) unt (%) nt (%) unt (%)
Account receivable with individual major amount and
- - - - - - - -
withdrawal bad debt provision independently
Accounts receivable with minor amount and accounts 457,1 561,1
100.0
receivable with major amount found no devaluation 35,02 - - 65,82 - - -
0
after individual devaluation test 6.84 2.31
Account receivable with individual minor amount but
- - - - - - - -
withdrawal bad debt provision independently
457,1 561,1
100.0
Total 35,02 - - 65,82 - - -
0
6.84 2.31
(2) Age analysis of account receivable:
In RMB
2014-6-30 Year-begin
Ages
Amount Proportion (%) Amount Proportion (%)
Within 1 year 343,829,737.84 75.21 319,486,825.69 56.93
1 to 2 years 113,302,400.00 24.79 241,676,107.62 43.07
2 to 3years - - - -
Over 3 years 2,889.00 0.00 2,889.00 0.00
Total 457,135,026.84 100.00 561,165,822.31 100.00
(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
In RMB
Relationship between the Proportion in total account
Name of the company Company Amount Age receivable (%)
Bureau of Finance of Shenzhen Government institution 382,334,30 Within 2 83.64
70 - -
Municipality 1.00 years
Guangdong Power Grid 74,742,974 Within 1
Non-related 16.35
Company .34 year
Within 1
Shenzhen University Non-related 54,862.50 0.01
year
Over 3
Ai Xihua Non-related 2,889.00 0.00
years
457,135,02
Total 100.00
6.84
2. Other account receivable
(1) Other account receivable classified according to type:
In RMB
2014-6-30 Year-begin
Bad debt Bad debt
Book Balance Book Balance
provision provision
Type
Prop Prop Prop Prop
Amou ortio Amo ortio Amou ortio Amo ortio
nt n (%) unt n (%) nt n (%) unt n (%)
16,7 16,7
16,78 16,78
Account receivable with individual major amount 81,6 81,6 100.0
1,666. 1.00 0.85 1,666. 1.04
and withdrawal bad debt provision independently 66.4 66.4 0
46 46
6 6
Accounts receivable with minor amount and 1,666, 1,589,
accounts receivable with major amount found no 383,0 98.80 - - 197,4 98.75 -
devaluation after individual devaluation test 56.84 76.22
Account receivable with individual minor amount 3,396, 3,04 3,396, 3,04
673.1 0.20 8,97 0.15 673.1 0.21 8,97 89.76
but withdrawal bad debt provision independently 1 9.11 1 9.11
19,8 19,8
1,686, 1,609,
100.0 30,6 100.0 30,6
Total 561,3 1.00 375,8 1.23
0 45.5 0 45.5
96.41 15.79
7 7
(2)Other account receivable classified according to age:
In RMB
2014-6-30 Year-begin
Ages
Amount Proportion (%) Amount Proportion (%)
Within 1 year 1,150,506,713.42 68.22 1,073,321,132.80 66.69%
1 to 2 years 384,352,071.98 22.79 384,352,071.98 23.88%
2 to 3years 90,141,334.50 5.34 90,141,334.50 5.60%
Over 3 years 61,561,276.51 3.65 61,561,276.51 3.83%
Total 1,686,561,396.41 100.00 1,609,375,815.79 100.00%
(3)Withdrawal of bad debt provision
①Other account receivable with individual major amount and withdrawal bad debt provision independently
In RMB
Withdrawal
Carrying Bad debt
Content of other account receivable proportion Reasons
amount provision
(%)
71 - -
Huiyang County Kangtai Industrial Company 14,311,626.70 14,311,626.70 100.00 Un-collectible
Individual income tax 2,470,039.76 2,470,039.76 100.00 Un-collectible
Total 16,781,666.46 16,781,666.46 100.00
②Year-end account receivable with individual minor amount but withdrawal bad debt
provision independently:
In RMB
Withdrawal
Content of other account Withdrawal
Book Balance Amount of Bad Reasons
receivable proportion
debt provision
Deposit receivable 2,083,698.16 1,736,004.16 83.31 Un-collectible for overdue
Dormitory amount receivable 1,312,974.95 1,312,974.95 100.00 Un-collectible for overdue
Total 3,396,673.11 3,048,979.11 89.76
(4) There are no other account receivable of the shareholders who hold over 5 %( 5% included) voting rights in report
period.
(5) Top 5 companies in other account receivable
In RMB
Proportio
n in total
Relationship between the other
Name of the company Amount Duration
Group account
receivabl
e (%)
Within 1 year to over 3
Shenzhong Development Subsidiary 794,250,011.27
years 47.09
Within 1 year to over 3
Zhongshan Power Company Subsidiary 637,575,803.07
years 37.80
Weimei Power Company Subsidiary 134,839,665.00 Within 1 year
7.99
Shenzhong Property Investment Subsidiary 90,642,949.99 Within 1 year
5.37
Environment Protection
Subsidiary 5,152,743.72 Within 1 year
Company 0.31
1,662,461,173.
Total
05 98.56
(6) Account receivable from related parties
In RMB
Proportion in total other
Units Relationship Amount
account receivable (%)
Shenzhong Development Subsidiary 794,250,011.27 47.09
Zhongshan Power Company Subsidiary 637,575,803.07 37.80
Weimei Power Company Subsidiary 134,839,665.00 7.99
Shenzhong Property Investment Subsidiary 90,642,949.99 5.37
Environment Protection Company Subsidiary 5,152,743.72 0.31
Shennan Singapore Subsidiary 212,337.56 0.01
72 - -
Syndisome Co., Subsidiary 81,497.94 0.00
Total 1,662,755,008.55 98.57
73 - -
3. Long-term equity investment
Details of long-term equity investment:
In RMB
Explanation
on the
Proportion Proportion incongruity
of share of voting in share Impairment Cash
Calculation Investment Balance at Balance dated holding in rights in holding Depreciation provision bonus
Invested company Increase/decrease(+,-)
method cost 30 June 2014 invested invested proportion reserves of accruing this
year-begin company company and voting this year year
(%) (%) proportion
in invested
company
Cost Not
Shenzhen Server 26,650,000.00 26,650,000.00 - 26,650,000.00 50 50 - - -
method applicable
New Power Cost Not
71,270,000.00 71,270,000.00 - 71,270,000.00 75 75 - - -
Company method applicable
Zhongshan Power Cost Not
410,740,000.00 410,740,000.00 - 410,740,000.00 55 55 - - -
Company method applicable
Engineering Cost Not
6,000,000.00 6,000,000.00 - 6,000,000.00 60 60 - - -
Company method applicable
Weimei Power Cost Not
115,319,049.76 115,319,049.76 - 115,319,049.76 40 40 - - -
Company method applicable
Cost Not
Shennan Singapore 6,703,800.00 6,703,800.00 - 6,703,800.00 100 100 - - -
method applicable
Environment
Cost Not
Protection 55,300,000.00 55,300,000.00 - 55,300,000.00 70 70 - - -
method applicable
Company
Shenzhong Cost Not
- - - - 75 75 - - -
Development method applicable
Shenzhong
Cost Not
Property - - - - 75 75 - - -
method applicable
Investment
Jiangxi Nuclear Cost 49,315,000.00 57,315,000.00 57,315,000.00 5 5 Not - - -
74 - -
Power method - applicable
Total 741,297,849.76 749,297,849.76 749,297,849.76 - - -
-
Less: depreciation
- -
reserves -
Net amount
long-term equity 749,297,849.76
749,297,849.76 -
investment
75 - -
4. Operation revenue/cost
(1) Operation revenue/cost
In RMB
Item Current period Last period
Main business revenue 195,266,910.43 132,378,837.12
Other business revenue 10,566,609.30 11,806,253.39
Total operation revenue 205,833,519.73 144,185,090.51
Main business cost 338,131,663.22 323,069,677.52
Other business cost 571,584.56 93,814.96
Total operation cost 338,703,247.78 323,163,492.48
(2) Main business (by industries)
In RMB
Current period Last period
Industries
Operation revenue Operation cost Operation revenue Operation cost
Energy 195,266,910.43 338,131,663.22 132,378,837.12 323,069,677.52
(3) Main business (by products)
In RMB
Current period Last period
Industries
Operation revenue Operation cost Operation revenue Operation cost
Electricity sold 195,266,910.43 338,131,663.22 131,562,065.17 322,651,790.37
Thermal sold - - 816,771.95 417,887.15
Total 195,266,910.43 338,131,663.22 132,378,837.12 323,069,677.52
(4) Operation revenue from top five clients
In RMB
Ratio in total operation
Name Operation revenue
revenue (%)
Guangdong Power Grid Company 195,266,910.43 94.87
Environment Protection Company 7,130,997.53 3.46
76 - -
New Power Company 3,174,738.24 1.54
Qianhai Development Investment Holding Co., Ltd. 143,550.00 0.07
Jinque Collection Stations of Shenzhen Metal Recycling Co., Ltd. 64,615.38 0.03
Total 205,780,811.58 99.97
5. Supplement of cash flow statement
In RMB
Item Current period Last period
1. Net profit adjusted as cash flow from operation activities:
Net profit -26,411,819.71 -43,728,542.80
Add: Assets for impairment
Depreciation of fixed assets 8,995,348.46 6,209,120.73
Amortization of intangible assets 674,323.56 663,794.16
Amortization of long-term expenses to be amortized - 24,994.08
Loss from disposal of fixed assets, intangible assets and other
- -
long-term assets (income)
Abandonment loss from fixed assets -
Financial expenses (income) 64,338,852.85 68,038,686.24
Investment losses (income) - -
Decrease of deferred income tax assets (increased) - -
Decrease of inventory (increased) - -2,155,641.11
Decrease of operational receivable (increased) 61,139,147.93 -136,923,004.58
Increase of operational payable (decreased) 183,897,713.75 456,708,266.61
Other -
Net cash flow from operation activities 292,633,566.84 348,837,673.33
2. Major investment and financing activities not involved
with cash income and expenses:
77 - -
Debt transfer to assets - -
Convertible bonds due within one year - -
Financing rent-in fixed assets - -
3. Net changes of cash and cash equivalent:
Balance of cash and cash equivalent at year-end 454,942,282.75 354,811,794.41
Less: Year-beginning balance of cash and cash equivalent 264,557,683.68 204,114,395.05
Net increase of cash and cash equivalent 190,384,599.07 150,697,399.36
XIII. Supplementary information
1. Statement of non-recurring gains/losses
In RMB
Item Amount in Jan-Jun 2014 Amount in Jan-Jun 2013
Gains/losses from the disposal of non-current asset
Governmental subsidy calculated into current gains and losses,
with closely related with the normal business of the Company,
1,478,830.68
1,815,600.76
excluding the fixed-amount or fixed-proportion governmental
subsidy according to the unified national standard)
Gains/losses from debt restructuring 0
-
Carry-back of depreciation reserves for receivables that testing
0
independently -
VAT return on impor&export of natural gas 10,739,822.79
-
Other non-operating income and expenditure except for the
460,940.17
aforementioned items 217,511.72
Impact on income tax -
-65,004.62
Impact on minority shareholders’ equity (post-tax) -3,334,681.88
-78,805.44
Total 9,344,911.76
1,889,302.42
2. ROE and EPS
In RMB
Profit in the Period Weighted average ROE EPS
78 - -
(%) Basic EPS Diluted EPS
Net profit attributable to shareholders of the
-4.81% -0.12 Not applicable
listed company
Net profit attributable to shareholders of the
listed company after deducting -4.93% -0.13 Not applicable
non-recurring gains and losses
79 - -
