深圳南山热电股份有限公司 2015 年半年度报告全文
Shenzhen Nanshan Power Co., Ltd.
SEMI-ANNUAL REPORT 2015
2015-061
August 2015
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深圳南山热电股份有限公司 2015 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.
Name of director absent Title for absent director Reasons for absent Attorney
Chen Lihong Director Cause for work Li Hongsheng
Lin Qing Director Cause for work Wu Dongxiang
Wang Xiaodong Independent director Cause for work Li Zheng
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 Wu
Dongxiang, person in charger of accounting works, CFO Huang Jian and
Financial Manager Gan Baoshan, person in charge of accounting organ
(accounting principal) hereby confirm that the Financial Report of Semi-Annual
Report 2015 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 2015 年半年度报告全文
Content
Semi-Annual Report 2015 ................................................................................................................. 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 2015 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.
Shenzhen 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.
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 2015 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 2014.
2. Information disclosure and preparation place
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 2014.
3. Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable √ Not applicable
Date/place for registration of the Company, registration number for enterprise legal license, number of taxation registration and
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深圳南山热电股份有限公司 2015 年半年度报告全文
organization code have no change in reporting period, found more details in Annual Report 2014.
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深圳南山热电股份有限公司 2015 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) 650,557,237.18 527,397,555.77 23.35%
Net profit attributable to shareholders of
-102,546,073.06 -75,247,848.71 36.28%
the listed company(RMB)
Net profit attributable to shareholders of
the listed company after deducting -135,090,642.01 -77,137,151.13 75.13%
non-recurring gains and losses(RMB)
Net cash flow arising from operating
318,855,299.19 390,088,829.00 -18.26%
activities(RMB)
Basic earnings per share (RMB/Share) -0.17 -0.12 41.67%
Diluted earnings per share (RMB/Share) - - -
Weighted average ROE -8.41 -4.81% -3.60%
Increase/decrease in this
End of current period End of last period report-end over that of last
period-end
Total assets (RMB) 5,148,274,872.24 5,056,415,825.14 1.82%
Net assets attributable to shareholder of
1,168,076,610.94 1,270,542,254.88 -8.06%
listed company(RMB)
II. Difference of the accounting data under accounting rules in and out of China
In the Period, net profit and net assets in and out of China of the Company had no difference.
III. Items and amounts of extraordinary profit (gains)/loss
√ Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the
17,323.58 -
write-off that accrued for impairment of assets)
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深圳南山热电股份有限公司 2015 年半年度报告全文
Governmental subsidy reckoned into current gains/losses (not
including the subsidy enjoyed in quota or ration according to
1,815,600.78 -
national standards, which are closely relevant to enterprise’s
business)
Other non-operating income and expenditure except for the
191,808.55 -
aforementioned items
Import VAT refunds for natural gas 43,717,420.50 -
Impact on minority shareholders’ equity (post-tax) 13,197,584.46 -
Total 32,544,568.95 --
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/loss
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深圳南山热电股份有限公司 2015 年半年度报告全文
Section IV. Report of the Board of Directors
I. Introduction
For the first half year of 2015, Guangdong province recorded moderate growth in economy, resulting in slow growth of overall
power utilization. However, as affected by the rapid increase of power transfer from the west to the east, successive official operation
of the new established power units and cease of power generation by those unauthorized units, power grid had substantially
decreased demands from fuel machine power plants for peak season. Accordingly, power generated by our Company which was
transmitted to the power grid had decreased. For the period from January to June 2015, the accumulative power quantity transmitted
to the power grid from our three fuel machine power plants was 562 million kwh, with a year-on-year decrease of 30.01%.
During the reporting period, challenged by the severe market conditions and operating difficulties, the Company continued to
implement the best economic efficient operation model applicable to the situation of low power quantity so as to minimize
production cost, subject to safety guarantee. Meanwhile, the Company alleviated capital pressure through actively seeking for more
financing channel, in order to ensure its capital chain safety. However, since pricing policies relating to the power transmitted to
power grid has not been implemented on time, the standard power generation subsidy granted by Shenzhen government was not able
to cover generation costs, the government subsidy for power generation was insufficient and power generation quantity declined
sharply, the Company was not able to get rid of operating loss.
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 Same period of y-o-y changes
(KWH) last year
Nanshan Power Factory(including units 3.00 4.00 -25.00%
belongs to New Power Co.,)
Zhongshan Nam Long Power Plant 2.62 2.79 -6.09%
Dongguan Gaobu Power Plant 0 1.23 -100.00%
Total 5.62 8.03 -30.01%
During the reporting period, the accumulative operating revenue of the Company was RMB 650,557,200, a 23.35% up as compared
to the same period of last year, mainly because the income from oil products trading increased; operating costs was RMB
746,907,800, decreased RMB 9,557,200 as compared to the same period of last year, Net profit attributable to owners of the parent
company was RMB -102,546,100 decreased RMB 27,298,300 as compared to the same period of last year, mainly because the
generation subsidy declined as the volume drops dramatically, especially the two generation units, owned by controlling subsidiary
Shen Nan Dian Dongguan Company, have stop ready for production since beginning of the Year for procedures re-approval due to
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深圳南山热电股份有限公司 2015 年半年度报告全文
the policy adjustment. As of 30 June 2015, the Company’s total assets was about RMB 5.148 billion, net assets was RMB 1.168
billion and the asset-liability ratio was 76%.
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
The oil trade revenue
Operating revenue 650,557,237.18 527,397,555.77 23.35% increased, and generation
income declined
Operating costs 746,907,771.86 756,464,991.38 -1.26%
Sales expenses of the oil
trade increased and dry
Sales expenses 2,183,711.61 1,659,963.69 31.55%
sludge disposal costs
increased
Administration expenses 43,210,635.07 43,191,076.63 0.05%
Finance expenses 115,851,533.93 106,839,866.08 8.43% Size of the loans increase
The quarterly income tax
Income tax expenses 488,647.17 1,692,763.26 -71.13% paid in advance
decreased
R&D input 0.00 0.00 0.00%
The generation subsidy
and power-sale income
Net cash flow arising
318,855,299.19 390,088,829.00 -18.26% decreased, the natural gas
from operating activities
refunds increased and gas
amount paid declined
Expenses of the
Net cash flow arising low-nitrogen
from investment -11,332,937.87 -22,525,931.92 -49.69% transformation decreased
activities in the Period and made
net cash flows increased
Net cash flow arising
-16,020,069.86 -171,777,208.82 -90.67% Financed amount growth
from financing activities
Net increase of cash and
291,495,149.10 195,855,731.81 48.83%
cash equivalent
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
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深圳南山热电股份有限公司 2015 年半年度报告全文
placing memorandum and recapitalize statement.
Review on the previous business plan and its progress during reporting period
1. During the reporting period, the accumulative power quantity transmitted to the power grid from our three fuel machine power
plants was 562 million kwh, accounting for 33.47% of our annual power generation plan, representing a year-on-year decrease of
30.01%. In respect of safety works, the Company realized safety working for successive 4,077 days, which provided important
guarantee for normal operation and sustainable development.
2. Pursuant to the Company Law and the Articles of Association, the Company refreshed its management team on 3 April 2015 to
ensure sustainable and steady normal operation.
3. In order to satisfying capital needs for normal operation and new projects construction, the Company carried out financial leasing
leaseback business and revitalized the power assets of New Power Company and Shennandian Zhongshan Company. The aforesaid
business has been implemented upon consideration and approval by shareholders at the second extraordinary general meeting of the
Company held on 25 June 2015.
4. Shenzhong Property Company has been developing the parcel of land with an area of 53.82 mu as scheduled. On 2 July 2015,
Shenzhong Property Company entered into the project construction contract with the bid winner Zhongheng Construction Group Co.,
Ltd., which laid good foundation for realization of the project development plan throughout the year. In addition, the Company is in
the process of revitalizing the land owned by Shenzhong Real Estate Company with an area of 346 mu.
5. During the reporting period, the natural gas heat & electricity united operation expansion project (2×460MW (level 9F) ) operated
by Shennandian Zhongshan Company has been included in the Concentrate Heat Supply Development Plan in Respect of Industrial
Park and Industrial Cluster of Zhongshan (2013-2020). The proposal on preliminary works relating to the natural gas heat &
electricity united operation expansion project (2×460MW (level 9F) ) newly operated by Shennandian (Zhongshan) Power Co., Ltd.
has been submitted to the development and reform commission of Guangdong province. There is no new progress for determination
of this project.
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 618,892,179.34 720,990,000.13 -16.50% 24.01% -0.94% 29.34%
Engineering labor 667,000.00 3,473,256.43 -420.73% - 26.63% -
Other revenue 30,209,177.70 22,168,608.23 26.62% 10.27% -9.03% 15.57%
According to products
Power marketing 358,193,156.87 463,119,355.38 -29.29% -28.23% -36.37% 16.55%
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深圳南山热电股份有限公司 2015 年半年度报告全文
Fuel oil
260,699,022.47 257,870,644.75 1.08% - - -
marketing
Engineering labor 667,000.00 3,473,256.43 -420.73% - 26.63% -
Sludge drying 30,209,177.70 22,168,608.23 26.62% 11.73% 7.76% 2.71%
Others 0.00 0.00 0.00% -100.00% -100.00% -
According to region
Domestic 649,768,357.04 746,631,864.79 -14.91% 23.42% -1.10% 28.49%
Overseas - - - - - -
IV. Core competitive-ness analysis
The Company is now the enterprise owning the most PG9171E-sized gas-steam united recycling power generator units, has
accumulated abundant experiences in construction and operation of large gas machine power plants, and has absorbed and cultivated
lots of gas machine technicians and experts, which makes the Company become a training base for gas machine talents.
As our economy has stepped into new normal operation which means economic structure is subject to material adjustments and
production and consumption of energy is subject to material reforms, competition in regional power market will be thus more furious.
Although gas-based power units performed excellent for peak season requirements and also excellent for environment and discharge
purposes, they recorded continuous decline in profitability especially the 9E units, due to the overall declined economic pressure
throughout the nation, continuous increase in power transmitted to Guangdong from the west, many new power contributors as well
as huge uncertainty in power subsidy policies. Despite of the relatively much disadvantages in future, the Company will fully
capitalize on the national policy relating to encouragement for clean energy utilization and leverage on its advantages in human
resources, to seek for survival and development.
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 0.00 0.00%
Invested company
Proportion of equity held by listed
Name Main business
company in invested company
CPI Jiangxi Nuclear Power Co., Ltd. Development, construction and operation 5.00%
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深圳南山热电股份有限公司 2015 年半年度报告全文
of the nuclear power projects; power
generating and relevant products; foreign
trading (excluded import and export
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
In RMB
Main
Industry Registered Operation Operation
Name Type products or Total assets Net assets Net profit
involved capital revenue profit
service
Technology
developmen
t regarding
to
application
of
remaining
heat
(excluding
Shen Nan
restricted RMB
Dian New Power 231,402,38 66,042,446. 19,056,240. -16,414,6 -16,414,693.3
Subsidiary items) and 113.85
Power industry 2.92 74 39 93.35 5
power million
Company
generation
with
remaining
heat. Add:
power
generation
through
burning
machines.
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深圳南山热电股份有限公司 2015 年半年度报告全文
power
generation
by burning
machines,
power
generation
by
remaining
heat, power
supply and
heat supply
(excluding
pipeline
Shen Nan
network of
Dian RMB 746.8 951,566,66 22,690,155. 166,864,51 -60,287,3 -60,240,413.4
Subsidiary Electricity heat
Zhongshan million 1.89 42 2.65 24.73 1
supply),
Company
lease of
dock and
oil storage
(excluding
oil
products,
dangerous
chemicals
and
inflammabl
e and
explosive
materials).
Developme
nt of real
eatate,
property
managemen
Shenzhong t, leasing RMB
1,025,035,3 -179,136,86 -36,932,4 -36,932,503.7
Real Estate Subsidiary Real Estate and sales of 177.80
37.36 8.45 86.79 8
Company own million
commercial
housing and
investment
of real
estate
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深圳南山热电股份有限公司 2015 年半年度报告全文
5. Major project invested by non-raised funds
√ Applicable □ Not applicable
In ten thousand Yuan
Amount
invested
Total Amount Date of Index of
accumulative
Project investment invested in this Progress Earnings disclosure disclosure
till end of
planned period (if applicable) (if applicable)
reporting
period
CPI Jiangxi
http://www.cni
Nuclear Power 34,785 0 5,731.5 N/A 2009-12-29
nfo.com.cn/
Co., Ltd.
Total 34,785 0 5,731.5 -- -- -- --
VI. Prediction of business performance from January – September 2015
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
□ Applicable √ Not applicable
VIII. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √ Not applicable
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
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深圳南山热电股份有限公司 2015 年半年度报告全文
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
2015-05-19 Field research Individual Investor
of the Company Company
Basic operation status of
the Company, financial
Investor relation situation; Situation of
Jan. to Jun. of 2015 Written inquiries Individual Investor (37)
interactive platform shareholders’ buying and
selling company stock; and
company profile
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深圳南山热电股份有限公司 2015 年半年度报告全文
Section V. Important Events
I. Corporate governance
There is no difference between corporate governance and the requirements of the Company Law and relevant regulations of the
CSRC
II. Lawsuits
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
□ Applicable √ Not applicable
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
√Yes □No
Financial claim receivable from related party:
Newly
Exist Balance at
added Amount of
Balance at Interest in
non-operatin recovery in period-end
period-begin amount in the Period
Related the Period
Relationship Reason g occupation (in 10 Interest rate (in 10 (in 10
parties the Period (in 10
thousand thousand
of funds thousand thousand
Yuan) Yuan)
(in 10 Yuan)
(Y/N) Yuan)
thousand
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深圳南山热电股份有限公司 2015 年半年度报告全文
Yuan)
Shen Nan Profit
Dian
Subsidiary distributio N 7,949.53 0 0 0.00% 0 7,949.53
Engineering
Co., n
Shen Nan Routine
Dian
Subsidiary operation N 63,493.66 0 9,576.89 7.00% 1,635.53 53,916.77
Zhongshan
Co open credit
Shenzhong Routine
Real Estate Subsidiary operation N 84,252.1 2,329.29 0 7.00% 2,829.28 86,581.39
Company open credit
Shenzhong Routine
Properties Subsidiary operation N 9,364.05 811.88 0 7.00% 319.12 10,175.93
Company open credit
Shen Nan Routine
Dian
Subsidiary operation N 10,674.86 0 5,931.01 7.00% 330.17 4,743.85
Dongguan
Co open credit
Routine
New Power
Subsidiary operation N 2,860.46 7,162.54 0 0.00% 0 10,023
Co.,
open credit
Shen Nan
Routine
Dian
Envionment Subsidiary operation N 815.7 0 29.81 0.00% 0 785.89
Protection
open credit
Co.,
Routine
Singapore
Subsidiary operation N 21.23 0 0 0.00% 0 21.23
Company
open credit
Routine
Syndisome
Subsidiary operation N 8.1 0 0 0.00% 0 8.1
Company
open credit
Influence on business
performance and financial
decreased current assets RMB 52,340,000 in the period.
status of the Company
from related liabilities
Debt payable to related party :
Newly The return
Balance at
Balance at added amount amount in the Interest in the
Period period-end
period-begin in the Period Period
Related
Relationship Reason (in 10 (in 10 Interest rate (in 10 (in 10
parties (in 10
thousand thousand
thousand thousand
Yuan) thousand Yuan)
Yuan) Yuan)
Yuan)
Shen Nan
Subsidiary Routine 9,486.96 43.83 5.60% 264.38 9,530.79
Dian
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深圳南山热电股份有限公司 2015 年半年度报告全文
Engineering operation
Co.,
open credit
Routine
Server Co., Subsidiary operation 3,146.99 8.15 5.60% 84.47 3,138.84
open credit
Routine
Syndisome
Subsidiary operation 346.97 0.33 346.64
Company
open credit
Influence on business
performance and financial
Decreased current liabilities RMB 353,500 in the period.
status of the Company from
related debts
3. Other related transactions
The company had no other 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 761,600 was obtained by
the Company in reporting period.
(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
19
深圳南山热电股份有限公司 2015 年半年度报告全文
Particulars about the external guarantee of the Company (Barring the guarantee for the controlling subsidiaries)
Related Guarante
Actual date of Complete
Name of the Announce e for
Guarantee happening (Date Actual Guarantee Guarantee implemen
Company ment related
limit of signing guarantee limit type term tation
guaranteed disclosure party
agreement) (Y/N)
date (Y/N)
Guarantee of the Company for the subsidiaries
Related Guarante
Actual date of Complete
Name of the Announce e for
Guarantee happening (Date Actual Guarantee Guarantee implemen
Company ment related
limit of signing guarantee limit type term tation
guaranteed disclosure party
agreement) (Y/N)
date (Y/N)
Shen Nan Dian
General
Zhongshan 2015-04-25 10,000 2014-05-09 0 2 years N Y
assurance
Company
Shen Nan Dian 1year
General
Zhongshan 2015-04-25 3,500 2014-06-30 3,500 N Y
assurance
Company
Shen Nan Dian 1year
General
Zhongshan 2015-04-25 10,000 2014-11-01 4,389 N Y
assurance
Company
Shen Nan Dian 1year
General
Zhongshan 2015-04-25 10,000 2014-12-10 4,851 N Y
assurance
Company
Shen Nan Dian 1year
General
Zhongshan 2015-04-25 20,000 2015-05-13 15,500 N Y
assurance
Company
Shen Nan Dian
General
Dongguan 2015-04-25 24,000 2013-09-06 10,000 2 years N Y
assurance
Company
Shen Nan Dian 1year
General
Dongguan 2015-04-25 5,000 2014-06-17 5,000 N Y
assurance
Company
Shen Nan Dian 1year
General
Dongguan 2015-04-25 25,000 2014-07-02 25,000 N Y
assurance
Company
Shen Nan Dian 1year
General
Dongguan 2015-04-25 10,000 2014-12-10 0 N Y
assurance
Company
Shen Nan Dian 1year
General
Dongguan 2015-04-25 10,000 2015-01-28 0 N Y
assurance
Company
Shen Nan Dian General
2015-04-25 20,000 2015-05-13 20,000 1year N Y
Dongguan assurance
20
深圳南山热电股份有限公司 2015 年半年度报告全文
Company
Shen Nan Dian 1year
General
Dongguan 2015-04-25 21,000 2015-04-07 3,500 N Y
assurance
Company
Shen Nan Dian 1year
General
Environment 2015-04-25 2,500 2014-12-08 0 N Y
assurance
Protection Co.
Shen Nan Dian 1year
General
Environment 2015-04-25 2,500 2015-02-04 2,500 N Y
assurance
Protection Co.
New Power General 1year
2015-04-25 10,000 2014-12-05 5,000 N Y
Company assurance
Total amount of actual
Total amount of approving
occurred guarantee for
guarantee for subsidiaries in 183,500 99,240
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 183,500 99,240
the end of reporting period
end of reporting period (B3)
(B4)
Guarantee of the subsidiaries for the subsidiaries
Related Guarante
Actual date of Complete
Name of the Announce e for
Guarantee happening (Date Actual Guarantee Guarantee implemen
Company ment related
limit of signing guarantee limit type term tation
guaranteed disclosure party(Y/
agreement) (Y/N)
date N)
Total amount of guarantee of the Company( total of three abovementioned guarantee)
Total amount of approving Total amount of actual
guarantee in report period 183,500 occurred guarantee in report 99,240
(A1+B1+C1) period (A2+B2+C2)
Total amount of approved Total balance of actual
guarantee at the end of report 183,500 guarantee at the end of report 99,240
period (A3+B3+C3) period (A4+B4+C4)
The proportion of the total amount of actually guarantee in the
84.96%
net assets of the Company (that is A4+ B4+C4)
Including:
Amount of guarantee for shareholders, actual controller and its
0
related parties(D)
The debts guarantee amount provided for the guaranteed
parties whose assets-liability ratio exceed 70% directly or 96,740
indirectly(E)
Proportion of total amount of guarantee in net assets of the
40,840
Company exceed 50%(F)
Total amount of the aforesaid three guarantees(D+E+F) 137,580
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)
Explanation on guarantee with composite way
21
深圳南山热电股份有限公司 2015 年半年度报告全文
(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 Appraisa
value of l value of Base
assets assets Appraisa date of Impleme
Dealing
Parties in involved involved l agency assets Related ntation
Counterp Contract Date for Pricing price (10 Relations
the (10 (10 (if evaluatio transacti end as
arty object signing principle thousand hip
contract thousand thousand applicabl n (if on(Y/N) the
Yuan)
Yuan) (if Yuan) (if e) applicabl Report
applicabl applicabl e)
e) e)
Be
compose
Guangdo d of
ng Trade three
Branch parts of Related
Not
of Liquified LNG contracts
The 2013-01- applicabl
CNOOC natural - - - - price, -N e still in
company 15
Gas & gas compreh impleme
Power ensive nting
Group service
Co., Ltd. charge
and
taxes.
Be
compose
Guangdo d of
Shen ng Trade three
Nan Branch parts of Related
Not
Dian of Liquified LNG contracts
2013-12- applicabl
Donggua CNOOC natural - - - - price, -N e still in
21
n Gas & gas compreh impleme
Compan Power ensive nting
y Group service
Co., Ltd. charge
and
taxes.
Shen Zhuhai Liquified 2014-05- Be Not Related
- - - - -N applicabl
Nan Trade natural 31 compose e contracts
22
深圳南山热电股份有限公司 2015 年半年度报告全文
Dian Branch gas d of still in
Zhongsh of three impleme
an CNOOC parts of nting
Compan Gas & LNG
y Power price,
Group compreh
Co., Ltd. ensive
service
charge
and
taxes.
Shui Mu Contract
Nian amount
Shenzho Zhonghe
Hua + design Impleme
ng ng Not
Garden change nt after
Propertie Construc 2015-07- 37,923.4 applicabl
project - - - - and visa N e relevant
s tion 02 8
(building amount - contract
Compan Group
size: deductibl signed
y Co., Ltd.
157,951. e
2
71 M ) expenses
4. Other material transactions
In order to meet normal operation needs of New Power Company and Shennandian Zhongshan Company, the Company provided
leaseback financing leasing guarantee to these two companies with guarantee amount of RMB190 million and RMB 610 million,
respectively, under which, the Company beard joint responsibility. The proposal relating to financial leasing by the wholly-owned
and controlling subsidiaries and provision of guarantee by the Company in respect thereof has been considered and approved at the
4th extraordinary meeting of the 7th Board and the 3rd extraordinary general meeting for 2015 held by the Company on 8 June and 25
June 2015, respectively. For details, please refer to the announcement relating to provision of guarantee for financial leasing
leaseback business conducted by its wholly-owned and controlling subsidiaries (No.: 2015-047) published by the Company on China
Securities, Securities Times, Hong Kong Commercial Daily and Juchao information website on 9 June 2015, and the resolution
announcement relating to the 3rd extraordinary general meeting for 2015 (No.: 2015-050) published by the Company on 26 June
2015.The project is currently in process.
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
Commitment Commitment
Commitments Accepter Contents Implementation
time period
Commitments for Share Merger Reform - - - - -
Commitments in report of acquisition or
- - - - -
equity change
Commitments in assets replacement - - - - -
23
深圳南山热电股份有限公司 2015 年半年度报告全文
Commitments make in Initial public
- - - - -
offering or re-financing
Shenzhen
Guangju
Industrial Co.,
Ltd.;
SHENZHEN Promise not to
ENERGY preparing the
(GROUP) CO., material events
LTD.; Shenzhen as material
Guoneng assets
2015-01-09 Within 3 months Completed
International reorganization,
Trading Co., acquisition,
LTD; HONG stock placement
KONG NAM in later three
HOI months
(INTERNATIO
Other commitments for minority NAL)
shareholders LIMITED; the
Company
Shenzhen
Guangju
Industrial Co., Promise not to
Ltd.; preparing the
SHENZHEN material events
ENERGY as material
(GROUP) CO., assets
2015-05-19 Within 3 months Completed
LTD.; HONG reorganization,
KONG NAM acquisition,
HOI stock placement
(INTERNATIO in later three
NAL) months
LIMITED; the
Company
Commitments for Share Merger Reform Yes
XI. Engagement and dismissal of CPA
Whether the semi-annual report was audited or not
□ Yes √ No
The semi-annual report was no audited.
XII. Penalty and rectification
The Company had no penalty or rectification in the reporting period.
24
深圳南山热电股份有限公司 2015 年半年度报告全文
XIII. Risk disclosure of delisting with laws and rules violated
The Company has no delisting risks with laws and rules violated in Period.
XIV. Explanation on other significant events
√ Applicable □ Not applicable
Two sets of power units owned by Shennandian Dongguan Company which was a controlling subsidiary of the Company have
ceased running from January to June 2015 pending for renewal of the relevant authorization procedures due to policy adjustments.
During the halt, the Company and Shennandian Dongguan Company strengthened routine maintenance for these units when
preparing relevant supportive documents as required for such authorization, to ensure that the units were well prepared to generate
power from time to time.
25
深圳南山热电股份有限公司 2015 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 20,020 0.0033% -7,027 -7,027 12,993 0.0022%
3. Other domestic
20,020 0.0033% -7,027 -7,027 12,993 0.0022%
shareholding
Domestic nature
20,020 0.0033% -7,027 -7,027 12,993 0.0022%
person shares
602,742,5 602,749,6
II. Unrestricted shares 100.00% 7,027 7,027 100.00%
76 03
338,893,6 338,895,1
1.RMB ordinary shares 56.22% 1,527 1,527 56.22%
30 57
2.Domestically listed 263,848,9 263,854,4
43.77% 5,500 5,500 43.77%
foreign shares 46 46
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
Explanation on changes in aspect of total shares, shareholders structures as well as structure of assets and liability of the Company
√ Applicable □ Not applicable
During the period, the original one of the main shareholders of the Company – Shenzhen Guoneng International Trading Co., Ltd.
reducing the stock of the Company through secondary market, and no shares of the Company held by Guoneng International Trading.
2. Changes of restricted shares
√ Applicable □ Not applicable
26
深圳南山热电股份有限公司 2015 年半年度报告全文
In share
Restricted
Shares
Sharehold Opening shares Shares released in Increased Ending shares
Restricted reasons Date for released
ers restricted Period In restricted
the
Period
Peng Bo 1,527 1,527 0 0 According to
relevant laws and 2015-5-11
Li Huiwen 5,500 5,500 0 0
regulations
Total 7,027 7,027 0 0 -- --
II. Number of shares and shares held
In Share
Total preference shareholders
Total common shareholders at with voting rights recovered at
41,617 0
period-end end of reporting period (if
applicable) (see Note 8)
Particulars about common shares held above 5% by shareholders or top ten common shareholders
Amount Number of share pledged/frozen
Number of of Amount of
Proportion Changes in
Nature of common restricted un-restricte
Shareholders of shares reporting
shareholder shares held at common d common State of share Amount
held period
period-end shares shares held
held
HONG KONG
NAM HOI Overseas
15.28% 92,123,248 - - 92,123,248 - -
(INTERNATIO corporate
NAL) LTD
Shenzhen
State-owned
Guangju
11.74% 70,758,623 -30,011,089 - 70,758,623 - -
Industrial Co., corporate
Ltd.
SHENZHEN State-owned
ENERGY corporate
10.80% 65,106,130 - - 65,106,130 - -
(GROUP) CO.,
LTD.
BOCI
Overseas
SECURITIES 1.65% 9,969,710 - - 9,969,710 - -
corporate
LIMITED
Taifook Overseas
1.61% 9,730,210 - - 9,730,210 - -
Securities corporate
27
深圳南山热电股份有限公司 2015 年半年度报告全文
Company
Limited-Accou
nt Client
GUOTAI
JUNAN
Overseas
SECURITIES( 1.00% 6,038,632 - - 6,038,632 - -
corporate
HONGKONG)
LIMITED
Phillip
Overseas
Securities (HK) 0.68% 4,079,568 - - 4,079,568 - -
corporate
Limited
YAO XIU Overseas nature
0.67% 4,059,339 - - 4,059,339 - -
GUANG person
Domestic nature
Yang Guoxiong 0.54% 3,252,639 - - 3,252,639 - -
person
Shanghai
Wanguo Overseas
0.51% 3,090,202 - - 3,090,202 - -
Securiteis corporate
(H.K.)
Strategy investors or general
corporate becomes top 10
common shareholders due to N/A
rights issued (if applicable)(see
Note 3)
Explanation on associated
1. Shenzhen Energy (Group) Co., Ltd. holds indirectly 100% equities of Hong Kong Nam Hoi
relationship among the aforesaid (International) Limited; 2. Among other social public shareholders, the Company did not know
whether there were associated relationships or belonging to consistent actors.
shareholders
Particular about top ten common shareholders with un-restrict shares held
Amount of un-restrict common shares held at Type of shares
Shareholders
period-end Type Amount
Domestically
HONG KONG NAM HOI
92,123,248 listed foreign 92,123,248
(INTERNATIONAL) LTD
shares
Shenzhen Guangju Industrial Co., RMB ordinary
70,758,623 70,758,623
Ltd. shares
SHENZHEN ENERGY (GROUP) RMB ordinary
65,106,130 65,106,130
CO., LTD. shares
Domestically
BOCI SECURITIES LIMITED 9,969,710 listed foreign 9,969,710
shares
28
深圳南山热电股份有限公司 2015 年半年度报告全文
Domestically
Taifook Securities Company
9,730,210 listed foreign 9,730,210
Limited-Account Client
shares
GUOTAI JUNAN Domestically
SECURITIES(HONGKONG) 6,038,632 listed foreign 6,038,632
LIMITED shares
Domestically
Phillip Securities (HK) Limited 4,079,568 listed foreign 4,079,568
shares
Domestically
YAO XIU GUANG 4,059,339 listed foreign 4,059,339
shares
Domestically
Yang Guoxiong 3,252,639 listed foreign 3,252,639
shares
Domestically
Shanghai Wanguo Securiteis (H.K.) 3,090,202 listed foreign 3,090,202
shares
Expiation on associated relationship
or consistent actors within the top
10 un-restrict common shareholders 1. Shenzhen Energy (Group) Co., Ltd. holds indirectly 100% equities of Hong Kong Nam Hoi
(International) Limited; 2. Among other social public shareholders, the Company did not
and between top 10 un-restrict know whether there were associated relationships or belonging to consistent actors.
common shareholders and top 10
common shareholders
Explanation on top ten common
shareholders involving margin N/A
business (if applicable)(see note 4)
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement
dealing in reporting period
√ Yes □ No
Top ten common shareholders or top ten common shareholders with un-restrict shares not held have a buy-back agreement dealing in
reporting period
III. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
Changes of controlling shareholders had no change in reporting period.
Changes of actual controller in reporting period
□ Applicable √ Not applicable
Changes of actual controller in reporting period had no change in reporting period.
29
深圳南山热电股份有限公司 2015 年半年度报告全文
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
30
深圳南山热电股份有限公司 2015 年半年度报告全文
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the reporting.
31
深圳南山热电股份有限公司 2015 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, found more details in Annual Report
2014.
II. Resignation and dismissal of directors, supervisors and senior executives
√ Applicable □ Not applicable
Name Title Type Date Reasons
Wu Xiangdong Director Elected 2015-04-21 Change of directors
Wu Xiangdong GM Appointment 2015-04-04 Change the term of management team
Ji Ming Director Elected 2015-04-21 Change of directors
Lin Qing Director Elected 2015-04-21 Change of directors
Huang Jian CFO Appointment 2015-04-04 Change the term of management team
Deputy
Yang Wenhua Leave the post 2015-03-27 Resignation
Chairman
Sun Jianxin Director Leave the post 2015-03-27 Resignation
Fu Bo Director Leave the post 2015-04-02 Resignation
Leave the post
Fu Bo GM while office 2015-04-03 Change the term of management team
terms expired
Huang Zhihong Supervisor Leave the post 2015-03-27 Resignation
Leave the post
Lv Xiaoping CFO while office 2015-04-03 Change the term of management team
terms expired
32
深圳南山热电股份有限公司 2015 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 2015 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.
Shenzhen Nanshan Power Co., Ltd.
25 August 2015
1
深圳南山热电股份有限公司 2015 年半年度报告全文
Consolidated Balance Sheet
In RMB/CNY
Liabilities and owners’
Asset 2015-6-30 2014-12-31 2015-6-30 2014-12-31
equity:
Current assets: Current liabilities:
Monetary funds 870,079,596.12 578,584,447.02 Short-term loans 2,512,400,000.00 2,617,890,000.00
Notes receivable - - Notes payable 320,000,000.00 260,000,000.00
Accounts
356,972,117.48 502,772,509.41 Accounts payable 173,100,599.78 139,165,440.83
receivable
Accounts paid in Accounts received in
5,542,051.29 6,233,357.49 - -
advance advance
Interest receivable - - Wage payable 42,103,528.54 47,122,426.07
Dividend
- - Taxes payable 5,970,534.98 7,344,990.85
receivable
Other receivables 33,392,035.24 30,150,229.08 Interest payable 50,920,125.96 42,162,535.84
Inventories 1,272,271,502.06 1,284,712,150.88 Dividend payable - -
Long-term debt
Other accounts
investment due within 1 - - 371,995,245.19 340,400,926.04
payable
year
Long-term liabilities due
Other current assets 603,382,754.19 613,644,525.13 - -
within 1 year
Total current assets 3,141,640,056.38 3,016,097,219.01 Total current liabilities 3,476,490,034.45 3,454,086,319.63
Non-current assets: Non-current liabilities:
Financial assets
57,315,000.00 57,315,000.00 Long-term loans 350,000,000.00 150,000,000.00
available for sale
Long-term account
- - Accrual liabilities 27,100,000.00 27,100,000.00
receivable
Long-term equity
23,714,052.98 24,597,397.33 Deferred income 45,266,714.18 47,082,314.96
investment
Investment Other non-current
3,322,645.75 3,543,988.51 - -
property liabilities
Total non-current
Fixed assets 1,807,161,667.67 1,839,739,944.19 422,366,714.18 224,182,314.96
liabilities
Construction in
34,176,630.05 32,826,131.18 Total liabilities 3,898,856,748.63 3,678,268,634.59
progress
Disposal of fixed asset - - Owners’ equity:
Intangible assets 55,172,845.77 56,524,171.28 Share capital 602,762,596.00 602,762,596.00
Long-term
Capital public
expenses to be - - 362,750,871.58 362,670,442.46
reserve
apportioned
Deferred income Other comprehensive
2,889,791.86 2,889,791.86 - -
tax asset income
Other non-current
22,882,181.78 22,882,181.78 Surplus public reserve 332,908,397.60 332,908,397.60
asset
Total non-current asset 2,006,634,815.86 2,040,318,606.13 Retained profit -130,345,254.24 -27,799,181.18
Total owner’s equity
attributable to parent 1,168,076,610.94 1,270,542,254.88
Company
Minority interests 81,341,512.67 107,604,935.67
Total shareholders’ equity 1,249,418,123.61 1,378,147,190.55
2
深圳南山热电股份有限公司 2015 年半年度报告全文
Total liabilities and
Total assets 5,148,274,872.24 5,056,415,825.14 5,148,274,872.24 5,056,415,825.14
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/CNY
Liabilities and owners’
Asset 2015-6-30 2014-12-31 2015-6-30 2014-12-31
equity:
Current assets: Current liabilities:
Monetary funds 556,719,432.74 332,803,493.04 Short-term loans 1,670,000,000.00 1,689,000,000.00
Notes receivable - - Notes payable 320,000,000.00 260,000,000.00
Accounts
287,237,353.25 348,412,708.95 Accounts payable 95,369,102.76 136,675,432.37
receivable
Accounts paid in Accounts received in
1,218,036.00 1,508,422.20 - -
advance advance
Interest receivable - - Wage payable 19,724,255.14 26,498,739.18
Dividend
79,495,331.17 79,495,331.17 Taxes payable 2,226,774.98 1,277,289.10
receivable
Other receivables 1,565,254,284.25 1,716,877,162.13 Interest payable 3,363,499.99 3,885,184.72
Inventories 85,822,565.39 83,913,536.01 Dividend payable - -
Long-term debt
Other accounts
investment due within 1 - - 70,406,851.11 154,070,351.82
payable
year
Other current assets 437,582,243.77 436,292,055.11 Other current liabilities - -
Total current assets 3,013,329,246.57 2,999,302,708.61 Total current liabilities 2,181,090,483.98 2,271,406,997.19
Non-current assets: Non-current liabilities:
Financial assets
57,315,000.00 57,315,000.00 Long-term loans 250,000,000.00 150,000,000.00
available for sale
Long-term equity
691,982,849.76 691,982,849.76 Deferred income 29,732,786.25 31,040,366.91
investment
Investment Other non-current
- - - -
property liabilities
Total non-current
Fixed assets 260,323,500.14 266,027,993.11 279,732,786.25 181,040,366.91
liabilities
Construction in
21,804,934.45 22,436,936.91 Total liabilities 2,460,823,270.23 2,452,447,364.10
progress
Disposal of fixed asset - - Owners’ equity:
Intangible assets 6,189,573.11 6,909,693.29 Share capital 602,762,596.00 602,762,596.00
Long-term
expenses to be - - Capital public reserve 288,849,561.59 288,769,132.47
apportioned
Deferred income Other comprehensive
- - - -
tax asset income
Other non-current
- - Surplus public reserve 332,908,397.60 332,908,397.60
asset
Total non-current asset 1,037,615,857.46 1,044,672,473.07 Retained profit 365,601,278.61 367,087,691.51
Total shareholders’ equity 1,590,121,833.80 1,591,527,817.58
3
深圳南山热电股份有限公司 2015 年半年度报告全文
Total liabilities and
Total assets 4,050,945,104.03 4,043,975,181.68 4,050,945,104.03 4,043,975,181.68
shareholders’ equity
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
Consolidated Profit Statement
In RMB/CNY
Item Jan-Jun 2015 Jan-Jun 2014
I. Total operation income 650,557,237.18 527,397,555.77
Including: operation income 650,557,237.18 527,397,555.77
II. Total operation cost 911,655,231.49 911,511,690.74
Including: operation cost 746,907,771.86 756,464,991.38
Operation tax and surcharge 3,501,579.02 3,355,792.96
Sales expense 2,183,711.61 1,659,963.69
Management expense 43,210,635.07 43,191,076.63
Financial expense 115,851,533.93 106,839,866.08
Loss of assets impairment - -
Add: Changing income of fair value(Loss is listed
- -
with “-”)
Investment income (Loss is listed with “-”) -883,344.35 -1,270,147.52
Including: Investment income on affiliated company
- -
and joint venture
III. Operating profit (Loss is listed with “-”) -261,981,338.66 -385,384,282.49
Add: Non-operating income 133,689,250.30 285,616,447.50
Including: Disposal gains of non-current asset 36,000.00 69,220.00
Less: Non-operating expense 28,760.53 10,380.50
Including: Disposal loss of non-current asset 18,676.42 196.00
IV. Total Profit (Loss is listed with “-”) -128,320,848.89 -99,778,215.49
Less: Income tax expense 488,647.17 1,692,763.26
V. Net profit (Net loss is listed with “-”) -128,809,496.06 -101,470,978.75
Net profit attributable to owner’s of parent company -102,546,073.06 -75,247,848.71
Minority shareholders’ gains and losses -26,263,423.00 -26,223,130.04
VI. Net after-tax of other comprehensive income - -
4
深圳南山热电股份有限公司 2015 年半年度报告全文
VII. Total comprehensive income -128,809,496.06 -101,470,978.75
Total comprehensive income attributable to owners
-102,546,073.06 -75,247,848.71
of parent Company
Total comprehensive income attributable to minority
-26,263,423.00 -26,223,130.04
shareholders
VIII. Earnings per share: - -
(i) Basic earnings per share -0.17 -0.12
(ii) Diluted earnings per share Not applicable Not applicable
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
Profit statement of parent company
In RMB/CNY
Item Jan-Jun 2015 Jan-Jun 2014
I. Operation income 182,088,549.77 205,833,519.73
Less: Operation cost 217,358,344.02 338,703,247.78
Operation tax and surcharge 2,959,810.77 2,587,543.57
Sales expense - -
Management expense 24,707,310.79 18,337,356.02
Financial expense 27,775,396.75 33,900,873.73
Loss of assets impairment -
Add: Changing income of fair value(Loss is
- -
listed with “-”)
Investment income (Loss is listed with “-”) - -
Including: Investment income on affiliated
- -
company and joint venture
II. Operating profit (Loss is listed with “-”) -90,712,312.56 -187,695,501.37
Add: Non-operating income 89,225,899.66 161,283,681.66
Including: Disposal gains of non-current
-
asset -
Less: Non-operating expense - -
Including: Disposal loss of non-current
- -
asset
III. Total Profit (Loss is listed with “-”) -1,486,412.90 -26,411,819.71
Less: Income tax expense - -
IV. Net profit (Net loss is listed with “-”) -1,486,412.90 -26,411,819.71
5
深圳南山热电股份有限公司 2015 年半年度报告全文
V. Other comprehensive income
VI. Total comprehensive income -1,486,412.90 -26,411,819.71
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
Consolidated Cash Flow Statement
In RMB/CNY
Item Jan-Jun 2015 Jan-Jun 2014
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 635,241,959.31 501,429,191.92
Write-back of tax received - -
Other cash received concerning operating activities 416,649,345.72 422,104,140.58
Subtotal of cash inflow arising from operating activities 1,051,891,305.03 923,533,332.50
Cash paid for purchasing commodities and receiving labor service 622,618,355.79 418,136,407.31
Cash paid to/for staff and workers 67,601,183.05 58,940,436.65
Taxes paid 10,935,597.84 30,742,279.61
Other cash paid concerning operating activities 31,880,869.16 25,625,379.93
Subtotal of cash outflow arising from operating activities 733,036,005.84 533,444,503.50
Net cash flows arising from operating activities 318,855,299.19 390,088,829.00
II. Cash flows arising from investing activities:
Net cash received from disposal of fixed, intangible and other
1,134.00 192,000.00
long-term assets
Other cash received concerning investing activities and disposal of subsidiaries
- -
and other units
Other cash received concerning investing activities 1,134.00 192,000.00
Subtotal of cash inflow from investing activities 11,334,071.87 22,717,931.92
Other cash paid concerning investing activities - -
Subtotal of cash outflow from investing activities 11,334,071.87 22,717,931.92
Net cash flows arising from investing activities -11,332,937.87 -22,525,931.92
III. Cash flows arising from financing activities
Cash received from absorbing investment - -
Cash received from loans 1,953,510,000.00 2,124,923,209.20
Other cash received concerning financing activities - 5,000,000.00
Subtotal of cash inflow from financing activities 1,953,510,000.00 2,129,923,209.20
Cash paid for settling debts 1,859,000,000.00 2,198,961,917.89
6
深圳南山热电股份有限公司 2015 年半年度报告全文
Cash paid for dividend and profit distributing or interest paying 110,530,069.86 102,738,500.13
Other cash paid concerning financing activities - -
Subtotal of cash outflow from financing activities 1,969,530,069.86 2,301,700,418.02
Net cash flows arising from financing activities -16,020,069.86 -171,777,208.82
IV. Influence on cash due to fluctuation in exchange rate -7,142.36 70,043.55
V. Net increase of cash and cash equivalents 291,495,149.10 195,855,731.81
Add: Balance of cash and cash equivalents at the period -begin 568,494,957.02 538,054,829.52
VI. Balance of cash and cash equivalents at the period -end 859,990,106.12 733,910,561.33
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
Cash flow statement of parent company
In RMB/CNY
Item Jan-Jun 2015 Jan-Jun 2014
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 166,247,138.21 246,894,180.60
Write-back of tax received - -
Other cash received concerning operating activities 544,519,386.74 363,882,004.24
Subtotal of cash inflow arising from operating activities 710,766,524.95 610,776,184.84
Cash paid for purchasing commodities and receiving labor service 187,901,365.88 173,636,002.04
Cash paid to/for staff and workers 41,440,816.51 35,681,103.73
Taxes paid 6,082,353.51 14,316,543.11
Other cash paid concerning operating activities 253,855,525.27 94,508,969.12
Subtotal of cash outflow arising from operating activities 489,280,061.17 318,142,618.00
Net cash flows arising from operating activities 221,486,463.78 292,633,566.84
II. Cash flows arising from investing activities:
Net cash received from disposal of fixed, intangible and other
- -
long-term assets
Other cash received concerning investing activities - -
Subtotal of cash inflow from investing activities - -
Cash paid for purchasing fixed, intangible and other long-term assets 389,316.98 375,242.58
Other cash paid concerning investing activities - -
Subtotal of cash outflow from investing activities 389,316.98 375,242.58
Net cash flows arising from investing activities -389,316.98 -375,242.58
III. Cash flows arising from financing activities
Cash received from absorbing investment - -
Cash received from loans 1,470,000,000.00 1,539,000,000.00
Other cash received concerning financing activities - 5,000,000.00
Subtotal of cash inflow from financing activities 1,470,000,000.00 1,544,000,000.00
7
深圳南山热电股份有限公司 2015 年半年度报告全文
Cash paid for settling debts 1,389,000,000.00 1,579,000,000.00
Cash paid for dividend and profit distributing or interest paying 78,180,586.79 66,873,223.57
Other cash paid concerning financing activities - -
Subtotal of cash outflow from financing activities 1,467,180,586.79 1,645,873,223.57
Net cash flows arising from financing activities 2,819,413.21 -101,873,223.57
IV. Influence on cash due to fluctuation in exchange rate -620.31 -501.62
V. Net increase of cash and cash equivalents 223,915,939.70 190,384,599.07
Add: Balance of cash and cash equivalents at the period -begin 332,803,493.04 264,557,683.68
VI. Balance of cash and cash equivalents at the period -end 556,719,432.74 454,942,282.75
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
8
深圳南山热电股份有限公司 2015 年半年度报告全文
Consolidated Statement on Changes of Owners’ Equity
In RMB/CNY
Amount in Jan-Jun 2015 Amount in 2014
Equity attributable to Shareholder of parent company Equity attributable to Shareholder of parent company
Item Minority’s Total owners’ Minority’s Total owners’
Share Capital Surplus Retained Share Capital Surplus Retained
equity equity equity equity
capital reserve reserves profit capital reserve reserves profit
I. Balance
at the end 602,762,59 362,670,44 332,908,39 -27,799,181. 107,604,93 1,378,147,19 602,762,59 362,670,44 332,908,39 302,714,103 198,724,01 1,799,779,55
of the last 6.00 2.46 7.60 18 5.67 0.55 6.00 2.46 7.60 .81 2.96 2.83
year
Add:
Changes of
- - - - - - - - - - - -
accounting
policy
II. Balance
at the 602,762,59 362,670,44 332,908,39 -27,799,181. 107,604,93 1,378,147,19 602,762,59 362,670,44 332,908,39 302,714,103 198,724,01 1,799,779,55
beginning 6.00 2.46 7.60 18 5.67 0.55 6.00 2.46 7.60 .81 2.96 2.83
of this year
III.
Increase/ -102,546,07 -26,263,423 -128,729,066 -330,513,28 -91,119,077 -421,632,362
- 80,429.12 - - - -
Decrease in 3.06 .00 .94 4.99 .29 .28
this year
(i) Total
comprehen -102,546,07 -26,263,423 -128,809,496 -330,513,28 -91,119,077 -421,632,362
- - - - - -
sive 3.06 .00 .06 4.99 .29 .28
income
(ii)
- - - - - - - - - - - -
Owners’
9
深圳南山热电股份有限公司 2015 年半年度报告全文
devoted
and
decreased
capital
1.
Owners’
- - - - - - - - - - - -
devoted
and capital
2. Other - - - - - - - - - - - -
(III) Profit
- - - - - - - - - - - -
distribution
1.
Withdrawal
- - - - - - - - - - - -
of surplus
reserves
2.
Distributio
n for
- - - - -
owners (or
shareholder
s)
3. Other - - - - - - - - - - - -
(IV)
Carrying
forward
- - - - - - - - - - - -
internal
owners’
equity
(V)Other - 80,429.12 - - - 80,429.12 - - - - - -
IV. Balance 602,762,59 362,750,87 332,908,39 -130,345,25 81,341,512. 1,249,418,12 602,762,59 362,670,44 332,908,39 -27,799,181. 107,604,93 1,378,147,19
at the end 6.00 1.58 7.60 4.24 67 3.61 6.00 2.46 7.60 18 5.67 0.55
10
深圳南山热电股份有限公司 2015 年半年度报告全文
of the
Period
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
11
深圳南山热电股份有限公司 2015 年半年度报告全文
Statement on Changes of Owners’ Equity of Parent Company
In RMB/CNY
Amount in Jan-Jun 2015 Amount in 2014
Item
Capital Surplus Total owners’ Capital Surplus Retained Total owners’
Share capital Retained profit Share capital
reserve reserves equity reserve reserves profit equity
I. Balance at the end of 602,762,596.0 288,769,132.4 332,908,397.6 288,769,132.4 332,908,397.6 454,517,163.5 1,678,957,289.6
367,087,691.51 1,591,527,817.58 602,762,596.00
the last year 0 7 0 7 0 8 5
Add: Changes of
- - - - - - - - - -
accounting policy
II. Balance at the 602,762,596.0 288,769,132.4 332,908,397.6 288,769,132.4 332,908,397.6 454,517,163.5 1,678,957,289.6
367,087,691.51 1,591,527,817.58 602,762,596.00
beginning of this year 0 7 0 7 0 8 5
III. Increase/ Decrease -87,429,472.0
- 80,429.12 - -1,486,412.90 -1,405,983.78 - - - -87,429,472.07
in this year 7
(i) Total -87,429,472.0
- - - -1,486,412.90 -1,486,412.90 - - - -87,429,472.07
comprehensive income 7
(ii) Owners’ devoted
- - - - - - - - - -
and decreased capital
1. Owners’ devoted
- - - - - - - - - -
and capital
2. Other - - - - - - - - - -
(III) Profit distribution - - - - - - - - - -
1. Withdrawal of
- - - - - - - - - -
surplus reserves
2. Other - - - - - - - - - -
(IV) Carrying forward
- - - - - - - - - -
internal owners’ equity
1. Capital reserves
conversed to share - - - - - - - - - -
capital)
2. Surplus reserves
conversed to share - - - - - - - - - -
capital
(V)Other - 80,429.12 - - 80,429.12
12
深圳南山热电股份有限公司 2015 年半年度报告全文
IV. Balance at the end 602,762,596.0 288,849,561.5 332,908,397.6 288,769,132.4 332,908,397.6 367,087,691.5 1,591,527,817.5
365,601,278.61 1,590,121,833.80 602,762,596.00
of the year 0 9 0 7 0 1 8
Person in charge of the Company: CFO: Person in charge of Financial Department:
Re-check: Tabulator:
13
Shenzhen Nanshan Power Co., Ltd.
Notes to financial statement 2015
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 Zhu Ban Fu [1993] No.897 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.
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- Basic Norms(Ministry of Finance Order No.33 Issued, Ministry of Finance Order No.76 Revised)
promulgated by the Ministry of Finance of PRC on 15 February 2006 and 41 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 30th June 2015, and the
Company together with its operation results, and cash flow for the semi-annual of 2015. 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 2014 and the notes thereto.
14
IV. The main accounting policies and accounting estimates
The Company and its subsidiaries are mainly engaged in power and thermal generation, construction of power plant,
fuel trading, property development, engineering technology consultancy and sludge desiccation operation. According
to the actual production and operation characteristics, the Company and its subsidiaries establish certain specific
accounting policies and accounting estimates in respect of their transactions and matters such as sales revenue
recognition pursuant to relevant business accounting principles. Details are set out in Note 25 Description of revenue
items under section IV. For explanation on material accounting judgment and estimate issued by the management,
please refer to note 31 Material accounting judgment and estimate under section IV.
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 1st
January to 31st December.
2. Operating cycle
Normal operating cycle refers to the period from purchase of assets used for processing to realization of cash or cash
equivalents. Our operation cycle is 12 months which is also serving as the standard for current or non- current assets
and liabilities.
3．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.
4. Accounting treatment on enterprise combine under the same control and under
the different control
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
15
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.
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) and Article 51 of the
“Accounting Standards for Business Enterprise No.33- Consolidated Financial Statement” (see Note IV. 5(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. 13 “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 statement, the sum between carrying value of the equity investment prior to acquisition date and
cost of additional investment made on the acquisition date is deemed to be the initial investment cost of this investment.
Other comprehensive income recognized for equity investment held prior to combination date under equity method
16
shall be accounted for when the Company disposes of this investment on the same basis as the investee directly
disposes of relevant assets or liabilities, which means that other than the changes arising from re-measuring the
acquiree’s net liabilities or net assets under defined benefit plan under equity method, it shall be included in investment
income of the current period.
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;
Other comprehensive income recognized for equity investment held prior to combination date under equity method
shall be accounted for when the Company disposes of this investment on the same basis as the investee directly
disposes of relevant assets or liabilities, which means that other than the changes arising from re-measuring the
acquiree’s net liabilities or net assets under defined benefit plan under equity method, it shall be included in investment
income of the current period dated purchasing day.
5. Preparation methods for corporate consolidated statements
(1) Determining principle for consolidated financial report scope
The scope is determined on the basis of control. Control refers to the Company possess rights over the investee party,
and enjoyed variable return through participate in the relevant activities of the investee party, and the Company has
ability to impact the amount of returns by using the rights over investee party. The consolidated scope includes the
Group and all the subsidiaries. Subsidiary is referring to the enterprise or the subject controlled by the Company.
Once change of relevant facts and conditions results in change to relevant factors involved in the above definition, the
Company will make further assessment.
(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
17
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.
Other comprehensive income relating to equity investment in original subsidiary shall be accounted for, upon lost of
control, under the same basis as the acquiree would otherwise adopt when relevant assets or liabilities are disposed
directly by the acquiree, which means that other than the changes arising from re-measuring the original subsidiary’s
net liabilities or net assets under defined benefit plan, it shall be included in investment income of the current period.
The remaining equity interests are measured subsequently according to “Accounting 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.13 “Long-term equity investments” or Note IV.9 “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. 13 (2) ④) 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.
6. Classification of joint arrangement and accounting treatment on conduct joint operation
Joint arrangement refers to such arrangement as jointly controlled by two or more participators. The Company
classifies joint arrangement into joint operation and joint venture according to the rights it is entitled to and obligations
it assumes. Under joint operation, the Company is entitled to relevant assets under the arrangement and assumes
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relevant liabilities under the arrangement. Joint venture refers to such joint arrangement under which the Company is
only entitled to the net assets of the arrangement.
Equity method is adopted for investment in joint ventures, and it is accounted for under the accounting policies set out
in note 13(2) ② “long term equity investment under equity method” under section IV.
As a joint party under joint operation, the Company recognizes the assets and liabilities it separately holds and assumes,
the assets and liabilities it jointly holds and assumes under the proportion, the revenue from disposal of the output
which the Company is entitled to under the proportion, the revenue from disposal of the output under the proportion
and the separately occurred expenses as well as expenses occurred for joint operations under its proportion.
For injection to or disposal of assets of joint operations (other than those assets constituting business operation) or for
purchase of assets from joint operations, gain or loss arising from the transaction is only recognized to the extent it is
attributable to other parties to the joint operation before the joint operation is sold to any third party. In case that assets
occur asset impairment loss under Business Accounting Principle No.8-Assets Impairment, the Company recognizes
this loss in full in connection with injection to or disposal of assets of joint operations, and recognizes this loss based
on the proportion in connection with purchase of assets from joint operations.
7. 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.
8. Foreign currency business and foreign currency statement translation
(1) Foreign currency business translation
Foreign currency transactions are translated into the Company’s functional currency at the spot rate on transaction date
(generally refers to the middle rate of prevailing foreign exchange rate released by the PBOC) when the transactions
are initially measured. However, foreign currency exchange business or transaction involving foreign currency
exchange occurred by the Company are translated into functional currency at the effective exchange rate adopted.
(2)Translation of foreign currency monetary items and foreign currency non-monetary items
On balance sheet date, foreign currency monetary items are translated at the spot rate as of balance sheet date, and the
exchange difference shall be included in current period gains and losses, except(1)exchange difference arising from
foreign currency special borrowings relating to purchasing assets satisfying capitalization conditions is stated under
capitalization principle of borrowing expenses; (2)exchange difference arising from hedge instruments used as
effective hedging of net investment in overseas operation (such difference shall be included in other comprehensive
income and recognized as current period gains and losses when the net investment is disposed); and (3)exchange
difference arising from change of carrying balance of available for sale foreign currency monetary items other than
amortized cost is included in other comprehensive income.
When preparing consolidated financial statement involving overseas operation, in case there is foreign currency
monetary items which substantially constitute net investment in overseas operation, the exchange difference arising
from exchange rate fluctuation shall be included in other comprehensive income; and shall transfer to gains and losses
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from disposal for the current period when the overseas operation is disposed of.
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.
(3)Translation of foreign currency financial statement
When preparing consolidated financial statement involving overseas operation, in case there is foreign currency
monetary items which substantially constitute net investment in overseas operation, the exchange difference arising
from exchange rate fluctuation shall be included in other comprehensive income as “translation difference of foreign
currency statement”; and shall transfer to gains and losses from disposal for the current period when the overseas
operation is disposed of.
Foreign currency financial statement for overseas operation is translated into RMB statement by the following means:
assets and liabilities in balance sheet are translated at the spot rate as of balance sheet date; owner’s equity items (other
than undistributed profit) are translated at the spot rate prevailing on the date of occurrence. Income and expense items
in profit statement are translated at the spot rate prevailing on the date of transactions. Beginning undistributed profit
represents the translated ending undistributed profit of previous year; ending undistributed profit is allocated and stated
as several items upon translation. Upon translation, difference between assets, liabilities and shareholders’ equity items
shall be recorded as foreign currency financial statement translation difference and recognized as other comprehensive
income. In case of disposal of overseas operation where control is lost, foreign currency financial statement
translation difference relating to the overseas operation as stated under shareholders’ equity in balance sheet shall be
transferred to current gains and losses of disposal in full or under the proportion it disposes.
Foreign currency cash flow and cash flow of overseas subsidiary are translated at the spot rate prevailing on the date of
occurrence of cash flow. Influence over cash from exchange rate fluctuation is taken as adjustment items to separately
stated in cash flow statement.
The beginning figure and previous year actual figures are stated at the translated figures in previous year financial
statement.
If the Company loses control over overseas operation due to disposal of all the owners’ equity or part equity investment
in the overseas operation or other reasons, foreign currency financial statement translation difference relating to the
overseas operation attributable to owners’ equity of parent company as stated under shareholders’ equity in balance
sheet shall be transferred to current gains and losses of disposal in full.
If the Company reduces equity proportion while not loses control over overseas operation due to disposal of part equity
investment in the overseas operation or other reasons, foreign currency financial statement translation difference
relating to the disposed part will be vested to minority interests and will not transfer to current gains and losses. When
disposing part equity interests of overseas operation which is associate or joint venture, foreign currency financial
statement translation difference relating to the overseas operation shall transfer to current disposal gains and losses
according to the disposed proportion.
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9. Financial instruments
Financial asset or financial liability is recognized when the Company becomes a party to financial instrument contract.
Financial assets and liabilities are initially measured at fair value. For financial assets and liabilities at fair value
through profit or loss, the relevant transaction fee shall be included in profit or loss directly. For other types of financial
assets and liabilities, the relevant transaction fee is included in initial measurement amount.
(1)Recognition of fair value for financial assets and financial liabilities
Fair value represents the price that market participator can receive for disposal of an asset or he should pay for transfer
of a liability in an orderly transaction happened on the measurement date. 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
21
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.
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.
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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
accounted for through profit or loss for the current period. However, equity instrument investment which is not quoted
in active market and whose fair value cannot be measured reliably, and derivative financial asset which is linked to the
equity instrument and whose settlement is conditional upon delivery of the equity instrument, shall be subsequently
measured at cost.
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
23
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.
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
24
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
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 and loan commitment
Financial guarantee contracts other than those designated as financial liabilities at fair value through profit or loss or
loan commitment other than those designated measured by fair value and with its variation for gains/losses reckoned as
well as the loans lower than the market rates 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
25
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
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. The Company issues (including refinancing), repurchases, sells or cancels equity instruments as
movement of equity. No fair value change of equity instrument would be recognized by the Company. Transaction fees
relating to equity transactions are deducted from equity.
The Group’s all distribution (shares dividend excluded) to the holders of the stock instrument will decrease the
shareholders’ equity. The Group does not recognize the fair value change sum of the stock instrument.
10. Account receivable
Account receivable included account receivable and other account receivable.
(1)Recognition of bad debt provision
The Group reviews carrying value of account receivables on balance sheet date, and make impairment provision for
account receivables which are proven to be impaired by the following objective evidences: ①debtor experiences
material financial difficulties; ②debtor is in breach of contract terms (for instance: default or expiration of payment
for principal or interest); ③ debtor is likely to face bankruptcy or other financing restructuring; ④other objective
evidence showing account receivables are impaired.
(2) Provision for bad debt reserves
①Recognition criteria and accrual method on accounts with major amount and withdrawal bad debt provision
independely
The single account receivable above RMB 2 million is recognized as single substantive account receivable
The Company takes the independent impairment test on the single substantive account. As for the account receivable
without the impairment in the test, it is included in the account receivable portfolio of the similar credit risk characters
for the impairment test. As for the account receivable with the recognition of impairment loss, it is not included in the
account receivable portfolio of the similar credit risk characters for the impairment test
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②Determination bases for account receivables for which bad debt provision is made according to category of credit
risks, and provision for bad debt
The Group determines categories of account receivables according to the similarity of credit risk characteristics.
Account receivables consist of those with insignificant single amount and those with significant single amount which is
not impaired based on separate impairment test. The Group is of the view that account receivables with insignificant
single amount and those with significant single amount which is not impaired based on separate impairment test are
exposed to low credit risks, thus it is not necessary to make bad debt provision, unless there is evidence showing that
account receivables have relatively substantial credit risks.
③Account receivables with insignificant single amount for which bad debt provision is made separately
For account receivables with insignificant single amount, if there is evidence showing that account receivables are
exposed to relatively substantial credit risks, bad debt provision shall be made for such account receivables under
specific identification method.
(3)Reversal of bad debt
If there is objective evidence showing recovery in value of account receivables 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 account receivables upon reversal will not exceed the amortized cost as at the reversal date
assuming there is no provision for impairment.
11. 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 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,
27
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.
12. Classified as assets held for sale
If a non-current asset can be promptly sold at its existing status only according to the practice terms in connection with
disposal of this kind of assets, and the Company has already made resolution on disposal of the non-current asset and
entered into irrevocable transfer agreement with the transferee, and this transfer will be completed within one year,
then the non-current asset would be calculated as non-current asset held for sale which would be not applicable to
depreciation or amortisation since the date of classification as asset held for sale, and would be measured at the lower
of its carrying value less disposal cost and fair value less disposal cost. Non-current asset held for sale consists of
single item asset and disposal group. If a disposal group is a group of assets as defined by No.8 of Business Accounting
Standards-Assets Impairment, and goodwill arising from business combination shall be allocated to the group of assets
under this accounting principle, or the disposal group constitutes one operation of the group of assets, then the disposal
group includes the goodwill arising from business combination.
For single non-current asset and asset in disposal group classified as assets held for sale, they shall be presented in
balance sheet separately as current assets. For liabilities in disposal group relating to the transferred assets classified as
assets held for sale, they shall be presented in balance sheet separately as current liabilities.
If an asset or disposal group classified as held for sale no longer meets the recognition condition as non-current asset
held for sale, the Company will cease such recognition and measure the asset at the lower of (1)the carrying value of
the asset or disposal group prior to being classified as held for sale, based on the amount adjusted with the depreciation,
amortisation or impairment which should have been recognized assuming it had not been classified as held for sale;
(2)the recoverable amount on the date when the Company decides to cease disposal.
13. Long-term equity investment
Long-term equity investments under this section refer to long-term equity investments in which the Company has
control, joint control or significant influence over the investee. Long-term equity investment without control or joint
control or significant influence of the Group is accounted for as available-for-sale financial assets or financial assets
measured at fair value with any change in fair value charged to profit or loss. Details on its accounting policy please
refer to Note 9. “Financial instruments” under section IV.
Joint control is the Company’s contractually agreed sharing of control over an arrangement, which relevant activities of
such arrangement must be decided by unanimously agreement from parties who share control. Significant influence is
the power of the Company to participate in the financial and operating policy decisions of an investee, but to fail to
28
control or joint control the formulation of such policies together with other parties.
(1) Determination of investment cost
For a long-term equity investment acquired through a business combination involving enterprises under common
control, the initial investment cost of the long-term equity investment shall be the absorbing party’s share of the
carrying amount of the owner’s equity under the consolidated financial statements of the ultimate controlling party on
the date of combination. The difference between the initial cost of the long-term equity investment and the cash paid,
non-cash assets transferred as well as the book value of the debts borne by the absorbing party shall offset against the
capital reserve. If the capital reserve is insufficient to offset, the retained earnings shall be adjusted. If the consideration
of the merger is satisfied by issue of equity securities, the initial investment cost of the long-term equity investment
shall be the absorbing party’s share of the carrying amount of the owner’s equity under the consolidated financial
statements of the ultimate controlling party on the date of combination. With the total face value of the shares issued as
share capital, the difference between the initial cost of the long-term equity investment and total face value of the
shares issued shall be used to offset against the capital reserve. If the capital reserve is insufficient to offset, the
retained earnings shall be adjusted. For business combination resulted in an enterprise under common control by
acquiring equity of the absorbing party under common control through a stage-up approach with several transactions,
these transactions will be judged whether they shall be treat as “transactions in a basket”. If they belong to
“transactions in a basket”, these transactions will be accounted for a transaction in obtaining control. If they are not
belong to “transactions in a basket”, the initial investment cost of the long-term equity investment shall be the
absorbing party’s share of the carrying amount of the owner’s equity under the consolidated financial statements of the
ultimate controlling party on the date of combination. The difference between the initial cost of the long-term equity
investment and the aggregate of the carrying amount of the long-term equity investment before merging and the
carrying amount the additional consideration paid for further share acquisition on the date of combination shall offset
against the capital reserve. If the capital reserve is insufficient to offset, the retained earnings shall be adjusted. Other
comprehensive income recognized as a result of the previously held equity investment accounted for using equity
method on the date of combination or recognized for available-for-sale financial assets will not be accounted for.
For a long-term equity investment acquired through a business combination involving enterprises not under common
control, the initial investment cost of the long-term equity investment shall be the cost of combination on the date of
acquisition. Cost of combination includes the aggregate fair value of assets paid by the acquirer, liabilities incurred or
borne and equity securities issued. For business combination resulted in an enterprise not under common control by
acquiring equity of the acquiree under common control through a stage-up approach with several transactions, these
transactions will be judged whether they shall be treat as “transactions in a basket”. If they belong to “transactions in a
basket”, these transactions will be accounted for a transaction in obtaining control. If they are not belong to
“transactions in a basket”, the initial investment cost of the long-term equity investment accounted for using cost
method shall be the aggregate of the carrying amount of equity investment previously held by the acquiree and the
additional investment cost. For previously held equity accounted for using equity method, relevant other
comprehensive income will not be accounted for. For previously held equity investment classified as available-for-sale
financial asset, the difference between its fair value and carrying amount, as well as the accumulated movement in fair
value previously included in the other comprehensive income shall be transferred to profit or loss for the current
period.
Agent fees incurred by the absorbing party or acquirer for the acquisition such as audit, legal service, and valuation and
consultation fees, and other related administration expenses are charged to profit or loss in the current period at the
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time such expenses incurred.
The long-term equity investment acquired through means other than a business combination shall be initially measured
at its cost. Such cost is depended upon the acquired means of long-term equity investments, which is recognized based
on the purchase cost actually paid by the Company in cash, the fair value of equity securities issued by the Group, the
agreed value of investment contract or agreement, the fair value or original carrying amounts of the non-monetary asset
exchange transaction which the asset will be transferred out of the Company, and the fair value of long-term equity
investment itself. The costs, taxes and other necessary expenses that are directly attributable to the acquisition of the
long-term equity investments are also included in the investment cost. For additional equity investment made in order
to obtain significant influence or common control over investee without resulted in control, the relevant cost for
long-term equity investment shall be the aggregate of fair value of previously held equity investment and additional
investment cost determined according to “Accounting Standard for Business Enterprises No. 22 – Recognition and
measurement of Financial Instruments”.
(2) Follow-up measurement and gain/loss recognition
As for the long-term equity investment with common control (except for the common operators ) over or significant
influence on the invested units, measured by the cost method. 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
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.
Under the equity method, investment gain and other comprehensive income shall be recognized based on the Group’s
share of the net profits or losses and other comprehensive income made by the investee, respectively. Meanwhile, the
carrying amount of long-term equity investment shall be adjusted. The carrying amount of long-term equity investment
shall be reduced based on the Group’s share of profit or cash dividend distributed by the investee. In respect of the
other movement of net profit or loss, other comprehensive income and profit distribution of investee, the carrying value
of long-term equity investment shall be adjusted and included in the capital reserves. The Group shall recognize its
share of the investee’s net profits or losses based on the fair values of the investee’s individual separately identifiable
assets at the time of acquisition, after making appropriate adjustments thereto. In the event of inconformity between the
accounting policies and accounting periods of the investee and the Company, the financial statements of the investee
shall be adjusted in conformity with the accounting policies and accounting periods of the Company. Investment gain
and other comprehensive income shall be recognized accordingly. In respect of the transactions between the Group and
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its associates and joint ventures in which the assets disposed of or sold are not classified as operation, the share of
unrealized gain or loss arising from inter-group transactions shall be eliminated by the portion attributable to the
Company. Investment gain shall be recognized accordingly. However, any unrealized loss arising from inter-group
transactions between the Group and an investee is not eliminated to the extent that the loss is impairment loss of the
transferred assets. In the event that the Group disposed of an asset classified as operation to its joint ventures or
associates, which resulted in acquisition of long-term equity investment by the investor without obtaining control, the
initial investment cost of additional long-term equity investment shall be the fair value of disposed operation. The
difference between initial investment cost and the carrying value of disposed operation will be fully included in profit
or loss for the current period. In the event that the Group sold an asset classified as operation to its associates or joint
ventures, the difference between the carrying value of consideration received and operation shall be fully included in
profit or loss for the current period. In the event that the Company acquired an asset which formed an operation from
its associates or joint ventures, relevant transaction shall be accounted for in accordance with “Accounting Standards
for Business Enterprises No. 20 “Business combination”. All profit or loss related to the transaction shall be accounted
for.
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.
For long equity investment in associate and joint venture held by the Company prior to first implementation of the new
accounting principles on 1 January 2007, equity investment debtor difference relating to the investment (if any) shall
be amortized and included in current gains and losses against the remaining period under straight line method.
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 5 (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.
In respect of long-term equity investment at equity with the remaining equity interest after disposal also accounted for
using equity method, other comprehensive income previously under owners’ equity shall be accounted for in
accordance with the same accounting treatment for direct disposal of relevant asset or liability by investee on pro rata
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basis at the time of disposal. The owners’ equity recognized for the movement of other owners’ equity (excluding net
profit or loss, other comprehensive income and profit distribution of investee) shall be transferred to profit or loss for
the current period on pro rata basis.
In respect of long-term equity investment at cost with the remaining equity interest after disposal is also accounted for
at cost, other comprehensive income recognized due to measurement at equity or recognition and measurement for
financial instruments prior to obtaining control over investee shall be accounted for in accordance with the same
accounting treatment for direct disposal of relevant asset or liability by investee and carried forward to current gains
and losses on pro rata basis. The movement of other owners’ equity (excluding net profit or loss, other comprehensive
income and profit distribution of investee) shall be transferred to profit or loss for the current period on pro rata basis.
In the event of loss of control over investee due to partial disposal of equity investment by the Group, in preparing
separate financial statements, the remaining equity interest which can apply common control or impose significant
influence over the investee after disposal shall be accounted for using equity method. Such remaining equity interest
shall be treated as accounting for using equity method since it is obtained and adjustment was made accordingly. For
remaining equity interest which cannot apply common control or impose significant influence over the investee after
disposal, it shall be accounted for using the recognition and measurement standard of financial instruments. The
difference between its fair value and carrying amount as at the date of losing control shall be included in profit or loss
for the current period. In respect of other comprehensive income recognized using equity method or the recognition
andmeasurement standard of financial instruments before the Group obtained control over the investee, it shall be
accounted for in accordance with the same accounting treatment for direct disposal of relevant asset or liability by
investee at the time when the control over investee is lost. Movement of other owners’ equity (excluding net profit or
loss, other comprehensive income and profit distribution under net asset of investee accounted for and recognized
using equity method) shall be transferred to profit or loss for the current period at the time when the control over
investee is lost. Of which, for the remaining equity interest after disposal accounted for using equity method, other
comprehensive income and other owners’ equity shall be transferred on pro rata basis. For the remaining equity interest
after disposal accounted for using the recognition and measurement standard of financial instruments, other
comprehensive income and other owners’ equity shall be fully transferred.
In the event of loss of common control or significant influence over investee due to partial disposal of equity
investment by the Group, the remaining equity interest after disposal shall be accounted for using the recognition and
measurement standard of financial instruments. The difference between its fair value and carrying amount as at the date
of losing common control or significant influence shall be included in profit or loss for the current period. In respect of
other comprehensive income recognized under previous equity investment using equity method, it shall be accounted
for in accordance with the same accounting treatment for direct disposal of relevant asset or liability by investee at the
time when equity method was ceased to be used. Movement of other owners’ equity (excluding net profit or loss, other
comprehensive income and profit distribution under net asset of investee accounted for and recognized using equity
method) shall be transferred to profit or loss for the current period at the time when equity method was ceased to be
used.
The Group disposes its equity investment in subsidiary by a stage-up approach with several transactions until the
control over the subsidiary is lost. If the said transactions belong to “transactions in a basket”, each transaction shall be
accounted for as a single transaction of disposing equity investment of subsidiary and loss of control. The difference
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between the disposal consideration for each transaction and the carrying amount of the corresponding long-term equity
investment of disposed equity interest before loss of control shall initially recognized as other comprehensive income,
and subsequently transferred to profit or loss arising from loss of control for the current period upon loss of control.
14. 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. Besides, vacant buildings held by the Company for operating or lease purposes would be also
stated as investment property provided that board of directors (or similar authority) pass written resolution which
definitely expresses that the buildings will be held for operating or lease purposes and the intention for holding will not
change shortly.
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 test method and impairment provision method in relation to investment property is detailed in note IV.20
“Long term assets impairment”.
Where property for own use or inventory transfers to investment property, or investment property transfers to property
for own use, carrying value before such transfer shall be taken as book value after such transfer.
In the event that an investment property is converted to an owner-occupied property, such property shall become fixed
assets or intangible assets since the date of its conversion. In the event that an owner-occupied property is converted to
real estate held to earn rentals or for capital appreciation, such fixed assets or intangible assets shall become an
investment property since the date of its conversion. Upon the conversion, investment property which is measured at
cost is accounted for with the carrying value prior to conversion, and investment property which is measured at fair
value is accounted for with the fair value as of the conversion date.
If an investment property is disposed of or if it withdraws permanently from use and no economic benefit will be
obtained from the disposal, the recognition of it as an investment property shall be terminated. When an investment
property is sold, transferred, retired or damaged, the amount of proceeds on disposal of the property net of the carrying
amount and related tax and surcharges is recognized in profit or loss for the current period.
15. 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
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considering the expected costs for disposal.
(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 years 10% 4.50%
Equipment(fuel machinery group
excluded) 15-20 years 10% 4.5%-6%
The work quantity
Equipment-fuel machinery group(note)
10% method
Transportation tools 5 years 10% 18%
Other equipment 5 years 10% 18%
Estimated salvage value refers to the amount of value retrieved after deducting of predicted disposal expense when the
expected using life of a fixed asset has expired and in the expected state of termination.
Note: 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”)
Shen Nan Dian (Zhongshan) Power Co., Generating unit 1# 3,856.98
Ltd.(“Zhongshan Power”) Generating unit 3# 3,799.49
Shen Nan Dian (Dongguan) Weimei Power Co., Generating unit 1# 4,107.76
Ltd.(“Weimei Power”) Generating unit 3# 3,850.07
(3) Impairment test on fixed asset and providing of impairment provision
Found more in Note IV-20.”Impairment of long-term assets”
(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
34
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
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.
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.
The Company re-reviews useful life, expected net residual value and depreciation method of fixed assets at least at
each year end. Any change thereof would be recorded as change of accounting estimates.
16. 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. It is
transferred to fixed asset as soon as the construction reaches the useful status.
Impairment testing method and accrual method for impairment reserves found in Note IV-20”Impairment of long-term
assets”
17. Borrowing expenses
Borrowing expenses include interest, amortisation of discounts or premiums related to borrowings, ancillary costs
incurred in connection with the arrangement of borrowings, and exchange differences arising from foreign currency
borrowings. Borrowing expenses that can be directly attributed for purchasing or construction of assets that are
complying with capitalizing conditions start to be capitalized when the payment of asset and borrowing expenses have
already occurred, and the purchasing or production activities in purpose of make the asset usable have started;
Capitalizing will be terminated as soon as the asset that complying with capitalizing conditions has reached its usable
or saleable status. The other borrowing expenses are recognized as expenses when occurred.
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.
During the capitalization period, exchange differences on a specific purpose borrowing denominated in foreign
currency shall be capitalized. Exchange differences related to general-purpose borrowings denominated in foreign
currency shall be included in profit or loss for the current period.
Qualifying assets are assets (fixed assets, investment property, inventories, etc.) that necessarily take a substantial
period of time for acquisition, construction or production to get ready for their intended use or sale.
35
Capitalization of borrowing costs shall be suspended during periods in which the acquisition, construction or
production of a qualifying asset is interrupted abnormally, when the interruption is for a continuous period of more
than 3 months, until the acquisition, construction or production of the qualifying asset is resumed.
18. Intangible assets
(1) Intangible assets
An intangible asset is an identifiable non-monetary asset without physical substance owned or controlled by the
Company.
An intangible asset shall be initially measured at cost. The expenditures incurred on an intangible asset shall be
recognized as cost of the intangible asset only if it is probable that economic benefits associated with the asset will
flow to the Company and the cost of the asset can be measured reliably. Other expenditures on an item asset shall be
charged to profit or loss when incurred.
Land use right acquired shall normally be recognized as an intangible asset. Self-constructed buildings (e.g. plants),
related land use right and the buildings shall be separately accounted for as an intangible asset and fixed asset. For
buildings and structures purchased, the purchase consideration shall be allocated among the land use right and the
buildings on a reasonable basis. In case there is difficulty in making a reasonable allocation, the consideration shall be
recognized in full as fixed assets.
An intangible asset with a finite useful life shall be stated at cost less estimated net residual value and any accumulated
impairment loss provision and amortized using the straight-line method over its useful life when the asset is available
for use. Intangible assets with indefinite life are not amortized.
The Group shall review the useful life of intangible asset with a finite useful life and the amortization method applied
at least at each financial year-end. A change in the useful life or amortization method used shall be accounted for as a
change in accounting estimate. For an intangible asset with an indefinite useful life, the Group shall review the useful
life of the asset in each accounting period. If there is evidence indicating that the useful life of that intangible asset is
finite, the Company shall estimate the useful life of that asset and apply
the accounting policies accordingly.
(2) Impairment test method of intangible assets & calculation method of depreciation reserve
Found more in Note IV-20”Impairment of long-term assets”
19. 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 amortized by straight-line method to the benefit period.
20. Impairment of long-term 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.
36
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.
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.
21. Staff remuneration
Staff remuneration includes short term staff remuneration, post office benefit, dismissal benefit and other long term
staff benefits, among which:
Short term staff remuneration mainly consists of salary, bonus, allowance and subsidy, staff benefits, medical insurance,
maternity insurance, work related injury insurance, housing funds, labor unit fee and education fee, non-monetary
benefits, etc. short term staff remuneration actually happened during the accounting period in which staff provides
services to the Company is recognized as liability, and shall be included in current gains and losses or relevant asset
cost. Non-monetary benefits are measured at fair value.
Post office benefits mainly consist of defined withdraw plan and defined benefit plan. Defined withdraw plan mainly
includes basic pension insurance, unemployment insurance and annuity, and the contribution payable is included in
relevant asset cost or current gains and losses when occurs.
When the Company terminates the employment relationship with employees before the end of the employment
37
contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, the Company
shall recognize employee compensation liabilities arising from compensation for staff dismissal and included in profit
or loss for the current period, when the Company cannot revoke unilaterally compensation for dismissal due to the
cancellation of labor relationship plans and employee redundant proposals; and the Company recognize cost and
expenses related to payment of compensation for dismissal and restructuring, whichever is earlier. However, if the
compensation for termination of employment is not expected to be fully paid within 12 months from the reporting
period, it shall be accounted for other long-term staff remuneration.
The early retirement plan shall be accounted for in accordance with the accounting principles for compensation for
termination of employment. The salaries or wages and the social contributions to be paid for the employees who retire
before schedule from the date on which the employees stop rendering services to the scheduled retirement date, shall
be recognized (as compensation for termination of employment) in the current profit or loss by the Group if the
recognition principles for provisions are satisfied.
For other long-term employee benefits provided by the Company to its employees, if satisfy with the established
withdraw plan, then the benefits are accounted for under the established withdraw plan, otherwise accounted for under
defined benefit scheme.
22. Accrued liabilities
When responsibilities connected to contingent issues meet the follow conditions at the same time, than recognized as
accrued liability: (1) the liability is the current liability that undertaken by the Company; (2) the liability has the
probability of result in financial benefit outflow; and (3) the responsibility can be measured reliably for its value.
At balance sheet day, with reference to the risks, uncertainty and periodic value of currency that connected to the
contingent issues, the predicted liabilities are measured according to the best estimation on the payment to fulfill the
current responsibility.
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.
(1)Contact in loss
Contact in loss is identified when the inevitable cost for performance of the contractual obligation exceeds the inflow
of expected economic benefits. When a contract in loss is identified and the obligations thereunder are qualified by the
aforesaid recognition criterion for contingent liability, the difference of estimated loss under contract over the
recognized impairment loss (if any) of the subject matter of the contract is recognized as contingent liability.
(2) Restructuring obligations
For detailed, official and publicly announced restructuring plan, the direct expenses attributable to the restructuring are
recognized as contingent liabilities, provided that the aforesaid recognition criterion for contingent liability is met. For
restructuring obligations arising from disposal of part business, the Company will recognise the obligations relating to
restructuring only when it undertakes to dispose part business (namely entering into finalized disposal agreement).
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23. Share-based Payments
(1) Accounting treatment
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
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.
On each balance sheet date during the vest period, the Company makes the best estimate based on subsequent
information such as the latest available information about change of number of exercisable employees, thus to amend
the number of equity instruments which are expected to be exercisable. Impact of the above estimate is included in
relevant cost or expense for the current period, with corresponding adjustment in capital reserve.
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.
(3) Accounting treatment in respect of themodification 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
39
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.
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.
(3)Accounting for share based payment concerning the Company, its shareholders or actual controllers
As for share based payment concerning the Company, its shareholders or actual controllers, with either the settlement
entity or service-acceptance entity in the Company or not, it is accounted for in our consolidated financial statement
under the following provisions:
①for settlement entity making settlement with its own equity instruments, the transaction is accounted for as equity
settled share based payment, otherwise it shall be accounted for as cash settled share based payment.
If the settlement entity is an investor of the service-acceptance entity, the transaction is recognized as long term equity
investment in the service-acceptance entity based on the fair value of the equity instruments as at the grant date or the
fair value of assumed liabilities, with recognition of capital reserve (other capital reserve) or liabilities.
②If service-acceptance entity is not obliged to settle or grant its own equity instruments to its employees, the share
based payment transaction is accounted for as equity settled share based payment. If service-acceptance entity is
obliged to settle or the equity instruments granted to its employee are not the own instruments of the entity, the share
based payment transaction is accounted for as cash settled share based payment.
For intra-company share based payment transactions, if the service-acceptance entity and settlement entity are not the
same enterprise, the share based payment transaction shall be recognized and measured in the respective financial
statement of the two entities under the aforesaid principles.
24. Income
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
40
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.
25. 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.
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.
References for the Company and its subsidiaries to determine government grants are set out below:
(1) References for the Company to determine government grants
For the first half year, the Company calculated fuel subsidy receivables according to the calculation method as
stipulated by the Interim Management Concerning Power Subsidy for Gas-based Units in Shenzhen (No.:
SFB[2015]14) issued by Shenzhen People’s Government Office, and recognized the same as government grant.
(2) References for the Company’s subsidiaries - Shennandian (Zhongshan) Power Co., Ltd. (hereinafter referred to as
“Zhongshan Power”) and Shennandian (Dongguan) Weimei Power Co., Ltd. (hereinafter referred to as “Weimei
Power”)to determine government grants:
Pursuant to the Notice Relating to Temporary Collection of Gas Processing Fee (NO.: YFH[2008]31) issued by
Guangdong People’s Government and relevant documents released by Guangdong Bureau of Commodity Prices,
Zhongshan Power and Weimei Power are entitled to recognize gas processing fee subsidy as government grant when
41
they actually receive such subsidy or obtain relevant certificates to prove their receipt of such subsidy. Zhongshan
Power and Weimei Power have not recognized government grant for the first half year since they didn’t receive
relevant certificates relating to gas processing fee subsidy yet.
Pursuant to the natural gas sales contract entered into between the Weimei Power Company and Guangdong Trade
branch of China shipping liquefied petroleum gas (LPG) electric group co., LTD, 2012-2013 natural gas sales
confirmation letter and its relevant supplementary agreements, Weimei Power Company shall realize tax rebate income
of natural gas import value-added tax when it receives accounts from Guangdong Trade branch of China shipping
liquefied petroleum gas (LPG) electric group co., LTD.
26 Deferred income tax asset/ deferred income tax liability
(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. Assessable income on which current income
expense is based represents the profit before tax for the year upon adjustment against relevant tax rules.
(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.
Deferred income tax liabilities are not recognized for taxable temporary differences related to: the initial recognition of
goodwill; and the initial recognition of an asset or liability in a transaction which is neither a business combination nor
affects accounting profit or taxable profit (or deductible loss) at the time of the transaction. In addition, the Group
recognizes the corresponding deferred income tax liability for taxable temporary differences associated with
investments in subsidiaries, associates and joint ventures, except when both of the following conditions are satisfied:
the Company able to control the timing of the reversal of the temporary difference; and it is probable that the
temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are not recognized for deductible temporary differences related to the initial recognition of
an asset or liability in a transaction which is neither a business combination nor affects accounting profit or taxable
profit (or deductible loss) at the time of the transaction. In addition, the Group recognizes the corresponding deferred
income tax asset for deductible temporary differences associated with investments in subsidiaries, associates and joint
ventures to the extent that it is probable that taxable profits will be available against which the deductible temporary
differences can be utilized, except when both of the following conditions are satisfied: it is not probable that the
temporary difference will reverse in the foreseeable future; and it is not probable that taxable profits will be available
in the future, against which the temporary difference can be utilized.
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.
42
On 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.
On 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.
(3) Income tax expenses
Income tax expense includes current income tax and deferred income tax.
Current deferred income tax and deferred income tax expenses or income shall reckoned into current gains/losses other
that those current income tax and deferred income tax with transactions and events concerned, that reckoned into
shareholder’s equity directly while recognized as other comprehensive income; and the book value of the goodwill
adjusted for deferred income tax arising from enterprise combination
(4) Offset of income tax
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to realize the assets
and settle the liabilities simultaneously, current tax assets and current tax liabilities are offset and presented on a net
basis.
When the Group has a legal right to settle current tax assets and liabilities on a net basis, and deferred tax assets and
deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or
different taxable entities which intend either to settle current tax assets and liabilities on a net basis or to realize the
assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax assets or
liabilities are expected to be reversed, deferred tax assets and deferred tax liabilities are offset and presented on a net
basis.
27. Leasing
Finance lease is to virtually transfer all risks and rewards related to ownership of asset, the ownership is may transfer
ultimately or not. 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 straight-line method. 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 renter
The rental is reckoned into the relevant assets cost or the current loss/gain in the linear way. The initial direct
substantive expenses are capitalized and reckoned into the current gain/loss, or the actual rental into the current
loss/gain. The initial direct small expenses are reckoned into the current actual gain/loss, or the actual rental into the
current loss/gain.
(3) Financing lease business with the Group recorded as lessee
On the beginning date of the lease, the entry value of leased asset shall be at the lower of the fair value of the leased
asset and the present value of minimum lease payment at the beginning date of the lease. Minimum lease payment shall
be the entry value of long-term accounts payable, with difference recognized as unrecognized financing expenses. In
43
addition, initial direct costs attributable to leased items incurred during the process of lease negotiation and signing of
lease agreement shall be included in the value of leased assets. The balance of minimum lease payment after deducting
unrecognized financing expenses shall be accounted for long-term liability and long-term liability due within one year.
Unrecognized financing expenses shall be recognized as financing expenses for the current period using effective
interest method during the leasing period. Contingent rent shall be included in profit or loss for the current period at the
time it incurred.
(4) Financing lease business with the Group recorded as lessor
On the beginning date of the lease, the entry value of lease receivable shall be the aggregate of minimum lease
receivable and initial direct costs at the beginning date of the lease. The unsecured balance shall be recorded. The
aggregate of minimum lease receivable, initial direct costs and unsecured balance and the different between their
present value shall be recognized as unrealised financing income. The balance of lease receivable after deducting
unrecognized financing income shall be accounted for long-term debt and long-term debt due within one year.
Unrecognized financing income shall be recognized as financing income for the current period using effective interest
method during the leasing period. Contingent rent shall be included in profit or loss for the current period
28 Other Main Accounting Policies and Estimations
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.
When debt is transferred to capital, balance between fair value of loaner’s share and book balance of credit to be
44
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.
29. Changes of main accounting policy and accounting estimation
There are no change of accounting policy and estimation in the Period
30. Major accounting judgment and 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. These judgments, estimations and assumption
would affect the reported amount of income, expense, asset and liability and disclosure of contingent liabilities on
balance sheet date. However, actual results resulting from the uncertainty of these estimates may differ from the current
estimation made by management of the Company, which would in turn lead to material adjustments to the carrying
value of assets or liabilities which will be affected in future.
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.
On balance sheet date, major aspects in the statement need to judge, estimate and consumption by the Company are as:
(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,
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
45
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)Impairment provision for non-financial non-current assets
The Company makes judgment on each balance sheet date on whether there is indication of impairment in respect of
non-current assets other than financial assets. Intangible assets with indefinite useful life shall also be further tested for
impairment when there is indication of impairment, in addition to the annual impairment test. Other non-current assets
other than financial assets would be test for impairment when there is indication showing its carrying value in not
likely to be recovered.
Impairment exists when carrying value of asset or assets group is higher than recoverable amount, namely the higher of
fair value less disposal cost and present value of expected future cash flow.
The calculation of the fair value less costs of disposal is based on available data from binding sales transactions in an
arm’s length transaction of similar assets or observable market prices less incremental costs for disposing of the asset.
In assessing value in use, significant judgments are exercised over the asset’s production, selling price, related
operating expenses and discount rate to calculate the present value. All relevant materials which can be obtained are
used for estimation of the recoverable amount, including the estimation of the production, selling price and related
operating expenses based on reasonable and supportable assumptions.
The Group determines whether goodwill is impaired at least on an annual basis. This requires an estimation of the
value in use of the cash-generating units to which the goodwill is allocated. Estimating the value in use requires the
Group to make an estimate of the expected future cash flows from the cash-generating units and also to choose a
suitable discount rate in order to calculate the present value of those cash flows.
46
(6)Depreciation and amortisation
Assets such as investment properties, fixed assets and intangible assets are depreciated and amortised over their useful
lives under straight line method after taking into account residual value. The estimated useful lives of the assets are
regularly reviewed to determine the depreciation and amortisation costs charged in each reporting period. The useful
lives of the assets are determined based on historical experience of similar assets and the estimated technical changes.
If there have been significant changes in the factors used to determine the depreciation or amortisation, the rate of
depreciation or amortisation is revised prospectively.
(7)Deferred income tax assets
Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable profit will be
available against which the losses can be utilised. Significant management judgment is required to determine the
amount of deferred income tax assets that can be recognized, based upon the likely timing and level of future taxable
profits together with future tax planning strategies.
(8) Early retirement pension plan and supplementary social pension plan
Expense and liability resulted from early retirement pension plan and supplementary social pension plan are
determined based on a variety of assumptions, including the discount rate, the growth rate of average medical cost, the
growth rate of retired employees’ subsidies and other factors. Differences between actual and estimated results will be
recognized accordingly as current expense. Although management believes that the assumptions are reasonable, the
changes in actual empirical value and assumptions will affect the amount of expenses and the balance of liabilities
resulted from early retirement pension plan and supplementary social pension plan.
(9)Projected liability
Provision for product quality guarantee, estimated onerous contracts, and delay delivery penalties shall be recognized
in terms of contract, current knowledge and historical experience. If the contingent event has formed a practical
obligation which probably results in outflow of economic benefits from the Group, a projected liability shall be
recognized on the basis of the best estimate of the expenditures to settle relevant practical obligation. Recognition and
measurement of the projected liability significantly rely on the management’s judgments inconsideration of the
assessment of relevant risks, uncertainties, time value of money and other factors related to the contingent events.
In addition, the Company would project liabilities for after-sale quality maintenance commitment provided to
customers in respect of goods sold, maintained and reconstructed by the Company. Recent maintenance experience of
the Company has been considered when projecting liabilities, while the recent maintenance experience may not reflect
the future maintenance. Any increase or decrease of this provision may affect profit or loss for future years.
V. Taxes
1. Main taxation items and its tax rate
Taxation items Tax rate
Output tax calculated based on the 11%, 13% or 17% of the taxable income, VAT
VAT
based on the difference after deducted the current input tax
47
Business tax Taxed by 3% and 5% of the taxable turnover
City maintenance tax Taxed by 1% , 5% and 7% of the turnover tax actually paid
Education surtax Taxed by 3% of the turnover tax actually paid
Local education surtax Taxed by 2% of the turnover tax actually paid
Enterprise income tax Taxed by 16.5% to 25% of the taxable income amount (note 1)
Tax by the Value-added amount from transferring state-owned land use right , landing
Land VAT
construction and its affiliates with four super-rate progressive tax rate
As for the taxed by residual value, paid with the 1.2% of the residual value after
Real estate tax original value deductged 30%; as for the taxed by house rental, taxed with 12% of the
rental income
Land-use tax of town
2.5 Yuan ~ 9Yuan per square meter for the land area actually occupated
(note 1) Rate for the income tax for the Company and subsidiaries as:
Taxpaying body Rate of income tax
Shenzhen Nanshan Power Co.,Ltd. (“the Company”) 25%
Shenzhen New Power Industrial Co., Ltd (“New Power”) 25%
Shenzhen Shennan Power Gas Turbine Engineering Technique Co., Ltd.
25%
(“Engineering Co., ”)
Shenzhen Server Energy Co., Ltd. (“Shenzhen Server”) 25%
Shenzhen Shennan Power Environment Protection Co., Ltd(“Environment
25%
Protection Co.,”)
Shennandian (Zhongshan) Power Co., Ltd. (“Zhongshan Power”) 25%
Shennandian (Dongguan) Weimei Power Company Limited (“Weimei
25%
Power”)
SHENNAN ENERGY (SINGAPORE) PTE LTD(“SINGAPORE LTD”) 20%
Zhongshan Shenzhong Real Estate Development Co., Ltd.(“Shen
25%
Development”)
Zhongshan Shenzhong Real Estate Investment Property Co., Ltd.(“ Shen
25%
Investment Property”)
Zhongshan Shennandian Storage Co., Ltd. (“Shen Storage ”) 25%
HONG KONG SYNDISOME CO., LIMITED(“SYNDISOME ”) 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
48
” Notice of adjustment
and perfection on
Environment VAT free
resources comprehensive Not Not Not
VAT Protection for sludge
usage and labor VAT applicable applicable applicable
treatment
Co., policy”(CS
No.115[2011])
” Arrangement of
avoidance of
Enterp double-taxation and Levy
prevention of tax free in income tax
rise Not Not Not
SYNDISOME mainland China and Hong by 10% of
incom applicable applicable applicable
Kong Special total share
e tax Administrative interests
Region”(GSH No.
884[2006])
No
enterprise
Enterp State Tax income tax
Shen Guo Sui
’Enterprise Income Tax Bureau of should pay
rise Nan Kou Jiao Not
SYNDISOME Law of People’s Republic Nanshan for the
incom Bei Zi No.: applicable
of China” Distict dividend
[2011]0011
e tax Shenzhen before 31
December
2007
49
VI. Annotation of the items in consolidate financial statement
With respect to the notes item (including Main item annotations of Financial Statements) disclosed below,
unless otherwise specified, “year-beginning” refers to 1 January 2015
1. Monetary fund
In RMB/CNY
Item 2015-6-30 Year-beginning balance
Cash on hand 177,656.64 231,215.44
Bank savings 859,130,274.52 567,604,064.37
Other monetary fund 10,771,664.96 10,749,167.21
Total 870,079,596.12 578,584,447.02
Including: total amount saving aboard 5,822,438.71 5,889,894.82
Note: among the above other monetary capital, there are totally 10,089,490 Yuan guarantee draft margin and
guarantee deposit included (on 31 December 2014: 10,089,490 Yuan).
2. Account receivable
(1) Account receivable classified according to types:
In RMB/CNY
2015-6-30
Type Book Balance Bad debt provision
Book value
Proportion Proportion
Amount Amount
(%) (%)
Account receivable with individual
major amount and withdrawal bad 3,474,613.06 0.96 3,474,613.06 100.00 -
debt provision independently
Accounts receivable with minor
amount and accounts receivable
with major amount found no 356,972,117.48 98.78 - - 356,972,117.48
devaluation after individual
devaluation test
Account receivable with individual
minor amount but withdrawal bad 946,915.10 0.26 946,915.10 100.00 -
debt provision independently
Total 361,393,645.64 100.00 4,421,528.16 1.22 356,972,117.48
(Continued)
Year-beginning
Type Book Balance Bad debt provision
Book value
Proportion Proportion
Amount Amount
(%) (%)
Account receivable with individual
major amount and withdrawal bad 3,474,613.06 0.69 3,474,613.06 100.00 -
debt provision independently
Accounts receivable with minor
amount and accounts receivable
with major amount found no 502,772,509.41 99.13 - - 502,772,509.41
devaluation after individual
devaluation test
- 50 -
Account receivable with individual
minor amount but withdrawal bad 946,915.10 0.18 946,915.10 100.00 -
debt provision independently
Total 507,194,037.57 100.00 4,421,528.16 0.87 502,772,509.41
(2) Age analysis of account receivable:
In RMB/CNY
2015-6-30 Year-beginning
Age Proportion
Amount Amount Proportion (%)
(%)
Within 1year 356,746,925.31 98.71 428,409,117.24 84.47
1 to 2years - - 74,138,200.00 14.62
2 to 3years 43,068.31 0.01 43,068.31 0.01
Over 3 years 4,603,652.02 1.27 4,603,652.02 0.90
Total 361,393,645.64 100.00 507,194,037.57 100.00
(3) Accrual for bad debt provision
① Other account receivable with individual major amount and withdrawal bad debt provision independently
In RMB/CNY
Withdrawal
Account receivable Carrying amount Bad debt provision Reasons
proportion (%)
Shenzhen Petrochemical
Products Bonded Trading 3,474,613.06 3,474,613.06 Un-collectible
100.00
Co., Ltd.
② Account receivable with individual minor amount but withdrawal bad debt provision independently at period-end
In RMB/CNY
Withdrawal
Account receivable Book Balance Bad debt provision Reasons
proportion (%)
Account of engineering Un-collectible for
800,000.00 800,000.00 100%
receivable overdue
Amount of oil sales Un-collectible for
146,915.10 146,915.10 100%
receivable 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/CNY
Name of the company Relationship Amount Age Proportion in
total account
- 51 -
receivable (%)
Bureau of Finance of
Non-related 219,696,519.00 Within 1year 60.79
Shenzhen Municipality
Guangdong Power Grid
Non-related 67,537,945.25 Within 1year 18.69
Company
Bureau of Finance of
Non-related 57,408,558.00 Within 1year 15.89
Zhongshan Municipality
Shenzhen Water Bureau Non-related 10,981,093.55 Within 1year 3.04
Shenzhen Petrochemical
Products Bonded Trading Co., Non-related 3,474,613.06 Over 3 years 0.96
Ltd.
Total 359,098,728.86 99.36
3. Account paid in advance
(1) Account paid in advance classified according to age:
In RMB/CNY
2015-6-30 Year-beginning
Account age Proportion
Amount Proportion (%) Amount (%)
Within 1year 3,474,547.09 62.69 6,165,853.29 98.92
1 to 2years 2,000,000.00 36.09 - -
2 to 3years - - - -
Over 3 years 67,504.20 1.22 67,504.20 1.08
Total 5,542,051.29 100.00 6,233,357.49 100
(2) Top five clients in account paid in advance
In RMB/CNY
Proportion in
Relationship with
Name of the company Amount Age total account
the Company
receivable(%)
Shenzhen Nangang Power Engineering Co.,
Non-related party 2,000,000.00 1 to 2years 36.09
Ltd.
Install Branch of Hangzhou Boiler Group
Non-related party 915,000.00 Within 1year 16.51
Co., Ltd.
GE -Harbin Power –Nanjing Wheel Energy
Non-related party 638,700.00 Within 1year 11.52
Service (Qinghuangdao) Co., Ltd.
Shandong Huayuan Power Station Equipment
Non-related party 576,000.00 Within 1year 10.39
Co., Ltd.
Realcom China Electric Co., Ltd. Non-related party 534,000.00 Within 1year 9.64
Total 4,663,700.00 84.15
(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
- 52 -
(1) Other account receivable classified according to type:
In RMB/CNY
2015-6-30
Book Balance Bad debt provision
Type
Proportio Proportio Book value
Amount Amount
n (%) n (%)
Other account receivable with
individual major amount and 20,341,666.4
20,341,666.46 35.34 100.00 -
withdrawal bad debt provision 6
independently
Other accounts receivable with minor
amount and accounts receivable with
32,756,068.44 56.91 - - 32,756,068.44
major amount found no devaluation
after individual devaluation test
Other account receivable with
individual minor amount but
4,460,450.11 7.75 3,824,483.31 85.74 635,966.80
withdrawal bad debt provision
independently
24,166,149.7
Total 57,558,185.01 100.00 41.99 33,392,035.24
7
(Continued)
Year-beginning
Book Balance Bad debt provision
Type
Proportion Proportion Book value
Amount Amount
(%) (%)
Other account receivable with
individual major amount and
20,341,666.46 37.45 20,341,666.46 100.00 -
withdrawal bad debt provision
independently
Other accounts receivable with
minor amount and accounts
receivable with major amount 29,514,262.28 54.34 - - 29,514,262.28
found no devaluation after
individual devaluation test
Other account receivable with
individual minor amount but
4,460,450.11 8.21 3,824,483.31 85.74 635,966.80
withdrawal bad debt provision
independently
Total 54,316,378.85 100.00 24,166,149.77 44.49 30,150,229.08
(2)Other account receivable classified according to age:
In RMB/CNY
2015-6-30 Year-beginning
Account age Proportion
Amount Proportion (%) Amount
(%)
Within 1year 6,863,749.78 11.93 3,865,742.55 7.12
1 to 2years 25,656,530.35 44.57 25,706,927.23 47.33
2 to 3years 235,788.31 0.41 272,688.31 0.50
Over 3 years 24,802,116.57 43.09 24,471,020.76 45.05
- 53 -
Total 57,558,185.01 100.00 54,316,378.85 100.00
(3)Withdrawal of bad debt provision
① Other account receivable with single major amount and withdrawal bad debt provision for single item
In RMB/CNY
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
②Account receivable with individual minor amount but withdrawal bad debt provision independently at Period-end:
In RMB/CNY
Bad debt Withdrawal
Item Book Balance Reasons
provision proportion (%)
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
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) Account receivable from relatd parties found more in Note 9-6. Account receivable/payable with related party
(6) Top five other account receivables at year-end balance listed by arrears party
In RMB/CNY
Proportion in
total other Year-end
Name of the company Relationship Amount Duration account balance of bad
receivable debt provision
(%)
Huiyang County Kangtai Non-related Over 3
14,311,626.70 24.86 14,311,626.70
Industrial Company party years
- 54 -
Huidong Server Harbor
Comprehensive Development Related party 13,060,361.44 1-2 年 22.69 -
Co., Ltd ( “Huidong Server”)
Managed account of Huidong
Related party 12,596,168.91 1-2 年 21.88 -
Server
Shandong Jinan Power Non-related Over 3
3,560,000.00 6.19 3,560,000.00
Equipment Factory party years
Non-related Within
Asset insurance fee 1,871,026.76 3.25 -
party 1year
Total 45,399,183.81 78.88 17,871,626.70
5. Inventory
In RMB/CNY
2015-6-30 Year-beginning
Item Depreciation Depreciation
Book Balance Book value Book Balance Book value
provision provision
Fuels 34,131,781.11 7,705,116.29 26,426,664.82 53,583,940.47 7,705,116.29 45,878,824.18
Raw materials 144,654,056.69 40,637,153.79 104,016,902.90 143,393,970.37 40,637,153.79 102,756,816.58
Land Space
Needed to 1,247,552,566.1 105,724,631.8 1,141,827,934.3 1,241,801,141.9 105,724,631.8 1,136,076,510.1
Development( 9 5 4 7 5 2
Note)
1,426,338,403.9 154,066,901.9 1,272,271,502.0 1,438,779,052.8 154,066,901.9 1,284,712,150.8
Total
9 3 6 1 3 8
Note: 1) The land cost for development of Shenzhong Development Co., and Shenzhong Property Investment.
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 2014: RMB 168,902,319.91). The capitalizing loan expense of this year was 0 yuan.
6. Other current assets
In RMB/CNY
Item 2015-6-30 Year-beginning balance
VAT input tax deductible 596,769,664.21 607,031,435.15
Enterprise income tax deductible 6,583,089.98 6,583,089.98
Other 30,000.00 30,000.00
Total 603,382,754.19 613,644,525.13
- 55 -
7. Financial assets available for sale
(1) Financial assets available for sale
In RMB/CNY
2015-6-30 Year-beginning balance
Item Depreciation Depreciation
Book Balance Book value Book Balance Book value
reserves reserves
Equity instrument 57,315,000.0 2,500,000.0 57,315,000.0
59,815,000.00 2,500,000.00 59,815,000.00
available for sale 0 0 0
Including: measured by 57,315,000.0 2,500,000.0 57,315,000.0
59,815,000.00 2,500,000.00 59,815,000.00
cost 0 0 0
57,315,000.0 2,500,000.0 57,315,000.0
Total 59,815,000.00 2,500,000.00 59,815,000.00
0 0 0
(2) Financial assets available for sale measured by cost at period-end
In RMB/CNY
Book Balance Depreciation reserves
Investee company
Year-begin +,- 2015-6-30 Year-begin +,- 2015-6-30
CPI Jiangxi Nuclear Power
57,315,000.00 - 57,315,000.00 - - -
Co., Ltd.
Shenzhen Petrochemical
Products Bonded Trading 2,500,000.00 - 2,500,000.00 2,500,000.00 - 2,500,000.00
Co., Ltd.
Total 59,815,000.00 - 59,815,000.00 2,500,000.00 - 2,500,000.00
Continued
Shareholding ratio in investee
Investee company Cash bonus
company(%)
CPI Jiangxi Nuclear Power Co., Ltd. 5.00
-
Shenzhen Petrochemical Products Bonded Trading Co.,
4.00
Ltd. -
8. Long-term equity investment
+,-
Year-end
Year-beginning Investment balance of
Investee company gains/losses Year-end balance
depreciation
balance Other
recognized by reserves
equity method
Affiliated business
Huidong Server(Note) 24,597,397.33 -883,344.35 - 23,714,052.98
-
Total 24,597,397.33 -883,344.35 - 23,714,052.98
-
Note: up to 30 June 2015, 20% equity of the Huidong Server was pledged to Jiahua Building Product (Shenzhen) Co., Ltd. with 2-year term;
found more in Note VI-23. Accrual liability
- 56 -
9. Investment real estate
In RMB/CNY
Construction
Item House, buildings Land use right Total
in process
I. Original book value
1. Year-beginning balance 9,708,014.96 - - 9,708,014.96
2.Current increased - - - -
3.Current decreased - - - -
4.Year-end balance 9,708,014.96 - - 9,708,014.96
II. accumulated depreciation and
accumulated amortization
-
1. Year-beginning balance 6,164,026.45 - - 6,164,026.45
2. Current increased 221,342.76 - - 221,342.76
(1) accrual or amortization 221,342.76 - - 221,342.76
3. Current decreased - - - -
4. Year-end balance 6,385,369.21 - - 6,385,369.21
III. depreciation provision
1. Year-beginning balance - - - -
2. Current increased - - - -
3.Current decreased - - - -
4. Year-end balance - - - -
IV. Book value -
1. Year-end book value 3,322,645.75 - - 3,322,645.75
2. Year-begin book value 3,543,988.51 - - 3,543,988.51
10. Fixed assets
(1) Change of fixed assets
In RMB/CNY
House and Machinery Transportation Other
Item Total
buildings equipment tools equipment
I. Original book value
1. Year-beginning balance 451,404,394.88 3,992,092,394.30 28,666,775.37 48,513,270.05 4,520,676,834.60
2. Current increased
(1) Purchase - 591,749.94 932,922.96 61,016.82 1,585,689.72
- 57 -
(2) Construction in process
- 25,983,394.52 115,997.78 450,000.00 26,549,392.30
transfer-in
(3) increased by enterprise
combination
3. Current decreased
(1) Disposal or scrap 197,884.00 197,884.00
4. balance dated 30 June
451,404,394.88 4,018,667,538.76 29,517,812.11 49,024,286.87 4,548,614,032.62
2015
II. Accumulated
depreciation
1. Year-beginning balance 242,483,549.15 2,315,021,450.48 24,885,288.31 40,032,512.04 2,622,422,799.98
2. Current increased
(1) accrual 7,221,604.83 52,715,228.67 211,605.77 545,130.87 60,693,570.14
3. Current decreased
(1) Disposal or scrap - - 178,095.60 - 178,095.60
4. balance dated 30 June
249,705,153.98 2,367,736,679.15 24,918,798.48 40,577,642.91 2,682,938,274.52
2015
III. impairment provision
1. Year-beginning balance 16,001,245.98 42,249,087.34 149,172.35 114,584.76 58,514,090.43
2. Current increased
(1) accrual - - - - -
3. Current decreased
(1) Disposal or scrap - - - - -
4. balance dated 30 June
16,001,245.98 42,249,087.34 149,172.35 114,584.76 58,514,090.43
2015
IV. Book value
1. balance dated 30 June
185,697,994.92 1,608,681,772.27 4,449,841.28 8,332,059.20 1,807,161,667.67
2015
2. Year-begin book value 192,919,599.75 1,634,821,856.48 3,632,314.71 8,366,173.25 1,839,739,944.19
(2) Idle fixed asses temporary
In RMB
Accumulated Impairment
Item Original book value Book value Note
depreciation provision
Wharf, processing
Houses and
31,597,904.77 13,636,992.51 5,059,785.83 12,901,126.43 workshop of heavy
buildings oil
Processing
equipment of heavy
Equipment 635,071,333.48 532,980,587.67 42,095,394.26 59,995,351.55 oil and generation
unit
- 58 -
Total 666,669,238.25 546,617,580.18 47,155,180.09 72,896,477.98
(3) Fixed assets without property license obtained
In RMB
Item Book value Reasons
Booster station 6,044,292.62 Procedures uncompleted
Steam turbine workshop 2,303,536.84 Procedures uncompleted
Chemical water tower 3,809,912.86 Procedures uncompleted
Treatment shop for heavy oil 743,005.91 Procedures uncompleted
Start-up boiler house 167,008.95 Procedures uncompleted
Fire pump room 387,902.55 Procedures uncompleted
Circulating water pump house 2,441,538.44 Procedures uncompleted
Comprehensive building 4,041,308.69 Procedures uncompleted
Production and inspection building 6,419,777.49 Procedures uncompleted
Administrative building 6,600,565.99 Procedures uncompleted
Mail room of the main entrance 267,512.33 Procedures uncompleted
Turbine building and annex building 14,133,928.93 Procedures uncompleted
Plant’s ventilating system 734,503.15 Procedures uncompleted
Office building 6,965,005.38 Procedures uncompleted
Comprehensive building 1,569,137.84 Procedures uncompleted
Draft cooling tower 4,541,154.86 Procedures uncompleted
Chemical water workshop and foundation of water tank 2,158,269.31 Procedures uncompleted
Industry pool and industry pump house 947,223.00 Procedures uncompleted
Start-up boiler house 158,273.47 Procedures uncompleted
Oil treatment room and oil un-loading platform 337,538.98 Procedures uncompleted
Total 64,771,397.59
- 59 -
11. Construction in process
(1) Construction in process
In RMB/CNY
2015-6-30 Year-beginning
Item Impairment Impairment
Book Balance Net book value Book Balance Net book value
provision provision
Oil to Gas Works 34,950,214.13 14,815,695.82 20,134,518.31 35,535,308.56 14,815,695.82 20,719,612.74
Cogeneration of heat and electricity Project 11,243,129.01 - 11,243,129.01 11,243,129.01 - 11,243,129.01
Others 2,798,982.73 2,798,982.73 863,389.43 - 863,389.43
Total 48,992,325.87 14,815,695.82 34,176,630.05 47,641,827.00 14,815,695.82 32,826,131.18
(2) Changes of significant projects in construction
In RMB/CNY
Increase of this Transferred fixed Other
Projects Budget Year-beginning year assets in this year decrease
2015-6-30
Oil to Gas Works 74,400,000.00 35,535,308.57 1,469,939.30 2,055,033.74 - 34,950,214.13
Cogeneration of heat and electricity Project 10,000,000.00 11,243,129.01 - - - 11,243,129.01
Others 863,389.43 26,429,951.86 24,494,358.56 - 2,798,982.73
Total 47,641,827.01 27,899,891.16 26,549,392.30 - 48,992,325.87
(3) Construction in process Impairment provision
In RMB/CNY
Decrease of this
Item Year-beginning Increase of this year year
2015-6-30 Reasons of accrual
Oil to Gas Works 14,815,695.82 - - 14,815,695.82 In idle condition
60
61
12. Intangible assets
In RMB/CNY
Item Land use right Software Total
I. Original book value
1. Year-beginning balance 91,253,625.27 3,727,409.85 94,981,035.12
2. Current increased -
(1) purchase - 17,600.00 17,600.00
3. Current decreased -
(1) diposal - - -
4. Year-end balance 91,253,625.27 3,745,009.85 94,998,635.12
II. accumulated amortization
1. Year-beginning balance 35,695,518.37 2,761,345.47 38,456,863.84
2. Current increased -
(1) accrual 1,158,789.84 210,135.67 1,368,925.51
3. Current decreased -
(1) disposal - - -
4. Year-end balance 36,854,308.21 2,971,481.14 39,825,789.35
III. Impairment provision
1. Year-beginning balance - - -
2. Current increased
(1) accrual - - -
3. Current decreased
(1) disposal - - -
4. Year-end balance - - -
IV. Book value
1. Year-end book value 54,399,317.06 773,528.71 55,172,845.77
2. Year-begin book value 55,558,106.90 966,064.38 56,524,171.28
13. Deferred income tax assets
In RMB/CNY
Item 2015-6-30 Year-beginning
62
Bad debt provision of account receivable 905,382.04 905,382.04
Other provision for bad debts of accounts receivable 185,396.25 185,396.25
Staff salary payable 830,621.00 830,621.00
Provision for devaluation of long-term equity investment 625,000.00 625,000.00
Others 343,392.57 343,392.57
Total 2,889,791.86 2,889,791.86
14.Other non-current assets
In RMB/CNY
Item 2015-6-30 Year-beginning
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/CNY
Item 2015-6-30 Year-beginning
Guarantee loans 842,400,000.00 928,890,000.00
Credit loans 1,670,000,000.00 1,689,000,000.00
Total 2,512,400,000.00 2,617,890,000.00
16. Note payable
In RMB/CNY
Classification 2015-6-30 Year-beginning
Bank acceptance 320,000,000.00 260,000,000.00
17. Account payable
(1)Details of account payable:
In RMB/CNY
Item 2015-6-30 Year-beginning balance
natural gas 168,118,767.13 130,301,138.50
materials 4,070,496.49 6,984,596.90
63
electricity 116,602.52 593,050.41
Others 794,733.64 1,286,655.02
Total 173,100,599.78 139,165,440.83
(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/CNY
Item 2015-6-30
CNOOC Gas & Power Group 167,794,241.53
Guangdong Power Grid Shenzhen Power Supply Bureau 811,681.00
Shenzhen Zhaosai Industrial Co., Ltd. 598,000.00
Huasheng Filter (Shenzhen) Co., Ltd. 540,769.23
Fushun Energy Equipment LTD. China 268,500.00
Total 170,013,191.76
18 Wages payable
(1) Wages payable
In RMB/CNY
Year-beginning Increase this
Item Decrease this year 2015-6-30
balance year
I. Short-term remuneration 41,472,002.86 61,783,379.65 65,061,591.92 38,193,790.59
II. Post-employment welfare-defined
5,650,423.21 6,912,670.56 8,653,355.82 3,909,737.95
contribution plans
III. Severance Pay - - - -
IV. Other welfare due within one year - - -
Total 47,122,426.07 68,696,050.21 73,714,947.74 42,103,528.54
(2) short-term remuneration
In RMB/CNY
Year-beginning Increase this
Item Decrease this year 2015-6-30
balance year
1. wages, bonuses, allowances and
38,708,167.47 51,070,120.74 55,279,053.05 34,499,235.16
subsidies
2. Welfare for employee - - - -
64
3. Social insurance 377,103.46 2,915,652.97 2,737,909.98 554,846.45
Including: Medical insurance 173,545.23 2,587,099.62 2,423,469.99 337,174.86
Work injury insurance 171,791.67 294,028.75 296,933.16 168,887.27
Maternity insurance 31,766.56 34,524.59 17,506.83 48,784.32
4. . Housing provident fund 439,655.72 6,941,698.00 6,456,181.00 925,172.72
5. Union funds and staff education
1,947,076.21 855,907.94 588,447.89 2,214,536.26
expenses
6. Short-term compensated absences - - - -
7. Short-term profit sharing plan - - - -
Total 41,472,002.86 61,783,379.65 65,061,591.92 38,193,790.59
(3) Defined contribution plans
In RMB/CNY
Year-beginning Increase this
Item Decrease this year 2015-6-30
balance year
1. Basic Endowment insurance 305,271.43 6,639,610.42 6,387,447.12 557,434.73
2. Unemployment insurance 37,349.78 192,502.14 193,857.70 35,994.22
3. Enterprise annuities 5,307,802.00 80,558.00 2,072,051.00 3,316,309.00
Total 5,650,423.21 6,912,670.56 8,653,355.82 3,909,737.95
19. Taxes payable
In RMB/CNY
Item 2015-6-30 Year-beginning
VAT 5,639.60 183,956.37
Business tax 1,911,659.04 641,838.11
Enterprise income tax 467,883.17 524,140.78
Individual income tax 1,113,141.77 1,737,363.70
Land-use tax of town 352,517.41 2,250,981.97
Real estate tax 1,650,520.23 1,788,550.92
Others 469,173.76 218,159.00
Total 5,970,534.98 7,344,990.85
20. Interest payable
65
In RMB/CNY
Item 2015-6-30 Year-beginning
Long-term loan interest of installment and interest charges 650,347.22 321,979.17
Interest payable of short-term loan 50,269,778.74 41,840,556.67
Total 50,920,125.96 42,162,535.84
21. Other account payable
Other account payable In RMB/CNY
Item 2015-6-30 Year-beginning
Loan (note) 280,495,875.99 280,495,875.99
Project expense 20,219,569.86 21,694,921.95
Quality guarantee deposit 4,954,228.13 3,880,132.74
Equipment amount 22,679,449.33 6,912,796.66
Land use right charge 752,198.28 1,065,676.50
Fund of the Board 626,120.25 1,399,096.78
Other 42,267,803.35 24,952,425.42
Total 371,995,245.19 340,400,926.04
Note : represented the amounts borrowed by Shenzhong Development Company from Xingzhong Group 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
Treasury bureau of Zhongshan city.
22. Long-term loans
In RMB/CNY
Item 2015-6-30 Year-beginning
Guarantee loans 100,000,000.00 -
Credit loans 250,000,000.00 150,000,000.00
Less: Long-term loans due within one year - -
Total 350,000,000.00 150,000,000.00
23. Accrued liabilities
In RMB/CNY
Current Current
Item Year-beginning 2015-6-30
increased decreased
66
Guarantee offering outside 27,100,000.00 - - 27,100,000.00
Note: 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 Nianshan 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. Relevant losses with the event concerned predicted amounting to
RMB27,100,000.00 by the Group up to 30 June 2015.
24. Deferred income
In RMB/CNY
Item Content 2015-6-30 Year-beginning
Government grants with
Government grants 45,266,714.18 47,082,314.96
assets-concerned
Including the deferred income:
In RMB/CNY
Amount
Assets
Year-beginning Subsidies reckoned in Other Year-end
Item related/income
balance increased non-operation changes balance
related
revenue
Subsidy for
energy-saving 1,254,409.90 - 57,018.66 - 1,197,391.24 Assets related
technology reform
Treasury subsidies for
4,101,250.00 - 127,500.00 - 3,973,750.00 Assets related
sludge drying
Support fund of
recycling economy for 10,686,288.15 - 323,501.46 - 10,362,786.69 Assets related
sludge drying
Subsidy for project of
low-nitrogen
transformation for 30,647,817.91 - 1,276,992.46 - 29,370,825.45 Assets related
welcoming the
Universiade
Support fund of
enterprise 392,549.00 - 30,588.20 - 361,960.80 Assets related
informationalization
Total 47,082,314.96 - 1,815,600.78 - 45,266,714.18
67
25. Share capital
In RMB/CNY
Changes in this year(+ -)
Year-beginning New Capitalizing
Item Bonus 2015-6-30
balance shares from Other Subtotal
shares
issued reserves
Total shares 602,762,596.00 - - - - - 602,762,596.00
26.Capital reserve
In RMB/CNY
Year-beginning Increase in the Decrease in
Item 2015-6-30
balance year the year
Capital premium 233,035,439.62 - - 233,035,439.62
Other capital surplus 129,635,002.84 80,429.12 - 129,715,431.96
Total 362,670,442.46 80,429.12 - 362,750,871.58
27. Surplus reserve
In RMB/CNY
Year-beginning Increase in the Decrease in
Item 2015-6-30
balance year the year
legal surplus reserve 310,158,957.87 - - 310,158,957.87
Discretionary surplus reserve 22,749,439.73 - - 22,749,439.73
Total 332,908,397.60 - - 332,908,397.60
28. Retained profit
In RMB/CNY
Item Current period Last year
Retained profit of last year before adjusted 302,714,103.81
-27,799,181.18
Total retained profit adjusted (increased with +, decreased
with -)
- -
Retained profit at beginning of the year after adjusted 302,714,103.81
-27,799,181.18
Add: net profit attributable to shareholders of parent
-330,513,284.99
company -102,546,073.06
68
Retained profit at period-end -27,799,181.18
-130,345,254.24
29. Operating income, operating cost
In RMB/CNY
Amount in this year Amount at last year
Item
Income Cost Income Cost
Main business 649,768,357.04 746,631,864.79 526,457,442.05 754,950,526.23
Other business 788,880.14 275,907.07 940,113.72 1,514,465.15
Total 650,557,237.18 746,907,771.86 527,397,555.77 756,464,991.38
30. Operating tax and surcharge
In RMB/CNY
Item Amount in this year Amount at last year
Business tax 3,120,482.66 2,953,299.03
City maintenance tax 218,481.87 206,898.77
Others 162,614.49 195,595.16
Total 3,501,579.02 3,355,792.96
31. Management expenses
In RMB/CNY
Item Amount in this year Amount at last year
Salary 18,273,577.39 18,467,978.36
Taxes 2,042,357.27 2,126,376.28
Leasing expenses 2,691,565.32 2,857,978.71
Entertainment expense 1,426,673.40 1,531,724.81
Expenses for agency appointment 2,127,655.45 952,713.04
Vehicles expenses 2,094,377.74 2,220,530.48
Expenses from the Board 690,280.07 738,892.81
Housing fund 1,418,120.32 1,570,856.80
Depreciation expense 1,331,600.58 1,388,406.49
Amortization of intangible assets 1,728,910.98 1,048,582.24
Specific expenses 191,324.51 301,730.29
Environmental expense 852,813.80 945,405.88
69
Sundry expenses 1,359,981.23 1,350,674.49
Expenses for enterprise culture 559,909.00 181,155.00
Property expense 519,750.52 544,529.04
Office expenses 209,775.39 287,177.34
Endowment insurance 1,671,242.45 1,784,132.86
Communication charge 668,438.64 698,374.15
Business traveling charge 341,368.12 207,873.71
Stock charge 269,820.00 341,009.23
Health insurance 808,325.91 853,379.29
Labor-union expenditure 371,231.19 406,733.10
Personnel education 80,481.35 214,676.21
Other 1,481,054.44 2,170,186.02
Total 43,210,635.07 43,191,076.63
32 Financial expenses
In RMB/CNY
Item Amount in this year Amount at last year
Interest expenditure 117,842,846.34 103,263,773.91
Less: Capitalized interest expenditure -
-
Less : interest income 3,429,481.88
2,164,599.64
Exchange gains/losses -22,875.76
127,658.52
Others 1,461,045.23
5,613,033.29
Total 115,851,533.93
106,839,866.08
33. Investment income
In RMB/CNY
Item Current year Last year
Income of long-term equity investment measured by -883,344.35 -1,270,147.52
70
equity method
Subtotal -883,344.35 -1,270,147.52
34.Non-operating income
In RMB/CNY
Item Current year Last year
Government grants 89,733,937.14 285,388,555.28
Natural gas import VAT refund 43,717,420.50 -
profits of disposal of he non-current assets 36,000.00 69,220.00
Including: Profit of disposal of fixed assets - 69,220.00
Others 201,892.66 158,672.22
Total 133,689,250.30 285,616,447.50
Government grants :
In RMB/CNY
Item Current year Last year
Income from fuel subsidies (Note1) 87,918,336.36
159,976,101.00
Subsidies income of fuel processing fee (Note2) 123,596,853.52
-
Subsidy for project of low-nitrogen transformation for
1,276,992.46
welcoming the Universiade 1,276,992.42
Support fund of enterprise informationalization 30,588.20
30,588.24
Subsidy for energy-saving technology reform 57,018.66
57,018.64
Government bond subsidy for sludge drying 127,500.00
127,500.00
Support fund of recycling economy for sludge drying 323,501.46
323,501.46
Total 89,733,937.14 285,388,555.28
Note 1: represents the gas-based units power subsidy provided by the Company according to the Interim Management Concerning
Power Subsidy for Gas-based Units in Shenzhen (No.: SFB[2015]14) issued by Shenzhen People’s Government Office.
Note 2: they have not recognized government grant for the first half year of 2015 since they didn’t receive relevant certificates
relating to gas processing fee subsidy in Guangdong province yet.
71
35. Non-operating expense
In RMB/CNY
Item Current year Last year
Expenses from external donation 10,000.00 10,000.00
Total loss from disposal of non-current assets 18,676.42 196.00
Including: Gains and loss of disposal of fixed assets 18,676.42 196.00
Others 84.11 184.50
Total 28,760.53 10,380.50
36. Income tax expenses
In RMB/CNY
Item Current year Last year
Current income tax measured by tax laws and
488,647.17 1,692,763.26
relevant regulations
37. item of cash flow statement
(1) Cash received with other operating activities concerned
In RMB/CNY
Item Current year Last year
Natural gas import refunds received 42,571,847.87 -
Fuels subsidy income 353,732,500.00 407,770,600.00
Open credit received 11,912,169.88 10,032,000.00
Others 8,432,827.97 4,301,540.58
Total 416,649,345.72 422,104,140.58
(2)Cash paid for other operating activities
In RMB/CNY
Item Current year Last year
Expense on agency appointment 2,127,655.45 1,438,036.89
Board expenses 690,280.07 739,263.33
Leasing expense 3,211,315.84 3,756,007.33
Entertainment expense 1,426,673.40 1,458,277.01
Others 24,424,944.40 18,233,795.37
72
Total 31,880,869.16 25,625,379.93
38. Supplementary information on cash flow statement
(1) Regulate the net profit into the cash flow of operating activities
In RMB/CNY
Supplementary information Current year Last year
1. Regulate the net profit into the cash flow of operating
activities
Net profit -128,809,496.06 -101,470,978.75
Add: Asset impairment provision - -
Depreciation of fixed assets 60,736,817.30 66,159,002.19
Amortization of intangible assets 1,368,925.51 1,420,437.88
Amortization of long-term deferred expenses - -
Loss from disposing fixed assets, intangible assets and other
17,323.58 -69,024.00
long-term assets (income listed with “-“)
Abandonment loss from fixed assets - -
Financial expenses (income) 112,422,052.05 106,839,866.08
Investment loss (income) 883,344.35 1,270,147.52
Decrease of deferred income tax assets (increased) - -
Decrease of inventory (increased) 12,440,648.82 -8,556,790.53
Decrease of receivable operating items (increased) 153,511,662.92 71,565,968.34
Increase of payable operating items (decreased) 106,284,020.72 252,930,200.27
Other - -
Net cash flow from operation activities 318,855,299.19 390,088,829.00
2. Major investment and financing activities not involving
cash income and expenditure:
Convertible company bond due within one year - -
Fixed assets acquired under finance leases - -
.3. Net change of cash and cash equivalents:
Year-end balance of cash and cash equivalent 859,990,106.12 733,910,561.33
Less: Year-beginning balance of cash and cash equivalent 568,494,957.02 538,054,829.52
Net increase of cash and cash equivalents 291,495,149.10 195,855,731.81
73
(2) Composition of cash and cash equivalent
In RMB/CNY
Item Current year Last year
I. cash 859,990,106.12 733,910,561.33
Including: Cash on hand 177,656.64 189,909.33
Bank savings available for payment needed 859,130,274.52 732,930,725.68
Other monetary capital available for payment needed 682,174.96 789,926.32
II. Cash equivalent -
III. Balance of cash and cash equivalent at period-end 859,990,106.12 733,910,561.33
74
39. Foreign currency
In RMB/CNY
Balance of foreign Conversion Balance of RMB
Item
currency at30 June 2015 rate converted at 30 June 2015
Monetary fund
Including: USD 892,658.80 6.1136 5,457,358.84
Euro 1,017.87 6.8699 6,992.67
HKD 809,816.11 0.7886 638,620.98
SGD 8,879.81 4.5580 40,474.17
VII. Change of consolidate scope
There are no changes in consolidated scope
VIII. Equity in other entity
1. Equity in subsidiaries
Main operation Registration Business Shareholding
Subsidiary Acquired way
place place nature ratio (%)
Shenzhen Server(Note1) Shenzhen Shenzhen Trading 50 Establishment
Power
New Power Shenzhen Shenzhen 100 Establishment
generation
Power
Zhongshan Power Zhongshan Zhongshan 80 Establishment
generation
Engineering
Engineering Co., Shenzhen Shenzhen 100 Establishment
consulting
Power
Weimei Power Dongguan Dongguan 70 Establishment
generation
Environment Protection
Shenzhen Shenzhen Engineering 100 Establishment
Co.,
SINGAPORE LTD Singapore Singapore Trading 100 Establishment
Real estate Not under the same
Shen Development Zhongshan Zhongshan 75
control
development
Shen Investment Property Zhongshan Zhongshan Real estate 75 Not under the same
75
control
development
Shen Storage Zhongshan Zhongshan Storage 80 Establishment
Import & Not under the same
SYNDISOME Hong Kong Hong Kong 100
control
export trading
Note : The Company holds 50% equity of Shenzhen Server, and takes majority voting rights in Shenzhen Server, thus, the Company
owes substantial control; Shenzhen Server included in the consolidate scope of the financial statement.
2. Equity in joint venture and cooperative enterprise
Main operation Registered Business Share-holding ratio (%)
Name Accounting treatment
place place nature
Directly Indirectly
Huidong Server Huizhou Huizhou Wharf 40 Equity method
Note: On 9th December 2013, controlling subsidiary of the Company Shenzhen Server holds 60% equity of Huidong Server, on date
when control rights loss, rests of the 40% equity of Huidong Server held by Shenzhen Server are measure again by appraisal value.
IX. Related party and related transactions
1. Parent company of the Group
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
Found more in 1. Equity in subsidiary in Note VIII
3. Joint venture and affiliated enterprise of the Group
Found more in 2. Equity in joint venture or affiliate business in Note VIII
4. Other related part
Other related party Relationship with the Company Organization code
Shenzhen Energy Group Co., Ltd. (“Energy Shareholders have major influence on
19218918-5
Group ”) the Company
Dongguan Weimei Ceramics Industrial Park Co., Minority shareholders of the
72919361X
Ltd. (” Weimei Ceramics”)
subsidiaries
76
Zhongshan Xingzhong Group Co., Ltd.(” Minority shareholders of the
733112675
XINGZHONG GROUP”)
subsidiaries
Shenzhen Mawan Powr Co., Ltd. (“Mawan Subsidiary of ultimate controller of
618816706
Power Company”)
Energy Group
Shenzhen Moon Bay Oil Harbour Co., Ltd. Subsidiary of ultimate controller of
618849428
(“Moon Bay Oil Company”)
Energy Group
Shenzhen Energy Group Holding Co., Ltd. (” Subsidiary of ultimate controller of
19224115-8
Energy Holding”)
Energy Group
Shenzhen Pipe Energy Technology Development
Others Related party 77877487-5
Co., ltd. (“Pipe Technology”)
Director of the Company and other senior
Key management staff Not applicable
executives
5. Related Transactions
(1) Lending money of related party
In RMB/CNY
Related party Amount of lending money Commencement date Maturity Date Note
Borrowing:
Xingzhong Group 125,316,816.85 2015.01.01 2015.12.31 Renewal
Xingzhong Group 14,335,291.80 2015.01.01 2015.12.31 Renewal
Xingzhong Group 2,500,000.00 2015.01.01 2015.12.31 Renewal
Xingzhong Group 16,250,000.00 2015.01.01 2015.12.31 Renewal
Xingzhong Group 23,750,000.00 2015.01.01 2015.12.31 Renewal
Xingzhong Group 74,022,567.34 2015.01.01 2015.12.31 Renewal
(2) Fund occupation expenses
In RMB/CNY
Amount in this year Amount at last year
Price Proportion Proportion
Transaction Transaction in amount of in amount of
Related party setting
type content Amount similar Amount similar
principal
transaction transaction
(%) (%)
Xingzhong Note 9,015,925.40 100.00 6,337,476.65 100.00
Fund Interest
77
occupation expenses
Group
expenses
Note: payment for the use of state funds is calculated according to loan rate of current capital of peer banks.
6. Account payable/receivable from related parties
In RMB/CNY
Item 2015-6-30 Year-beginning
Other account receivable:
Huidong Server 13,060,361.44 13,060,361.44
Huidong Server managed account 12,596,168.91 12,448,671.43
Total 25,656,530.35 25,509,032.87
Other account payable:
Xingzhong Group 256,174,675.99 256,174,675.99
Total 256,174,675.99 256,174,675.99
Interest payable:
Xingzhong Group 18,076,539.06 9,060,613.66
Total 18,076,539.06 9,060,613.66
X. Commitment
1. Major commitment
Till the balance sheet day, the condition of irrevocable operating lease contract the Group externally signed is as follow:
In RMB/CNY
Item 2015-6-30 Year-beginning
Minimum lease payments of irrevocable operating lease:
The first year after balance sheet day 6,523,946.50 6,736,681.50
The second year after balance sheet day 1,504,396.50 3,728,646.50
The third year after balance sheet day 1,504,396.50 1,504,396.50
Subsequent years 61,795,741.25 62,804,179.50
Total 71,328,480.75 74,773,904.00
2. Contingency
Up to 30th June 2015, the Company has no important contingency that need to disclosed
78
XI. Events Occurring after the Balance Sheet Date
The Company has no events occurring after balance sheet date that need to disclosed up to 30th June 2015
XII. Other important events
The Company has no other important events that need to disclosed up to to 30th June 2015
XIII. Note to items of financial statements of the Parent Company
1. Account receivable
(1) Accounts receivable classifying according to the category:
In RMB/CNY
2015-6-30
Category Book Balance Bad debt provision
Book value
Amount Proportion(%) Amount Proportion(%)
Account receivable with
individual major amount and
- - - - -
withdrawal bad debt provision
independently
Accounts receivable with minor
amount and accounts receivable
with major amount found no 287,237,353.25 100.00 - - 287,237,353.25
devaluation after individual
devaluation test
Account receivable with
individual minor amount but
- - - - -
withdrawal bad debt provision
independently
Total 287,237,353.25 100.00 - - 287,237,353.25
(Continued)
Year-beginning
Category Book Balance Bad debt provision
Book value
Amount Proportion(%) Amount Proportion(%)
Account receivable with
individual major amount and
withdrawal bad debt provision - - - - -
independently
79
Accounts receivable with minor
amount and accounts receivable
with major amount found no 348,412,708.95 100.00 - - 348,412,708.95
devaluation after individual
devaluation test
Account receivable with
individual minor amount but
- - - - -
withdrawal bad debt provision
independently
Total 348,412,708.95 100.00 - - 348,412,708.95
(2) Age analysis of account receivable:
In RMB/CNY
2015-6-30 Year-beginning
Age Proportion
Amount (%) Amount Proportion (%)
Within 1year 287,234,464.25 100.00 274,271,619.95 78.72
1 to 2years - - 74,138,200.00 21.28
2 to 3years - - - -
Over 3 years 2,889.00 - 2,889.00 -
Total 287,237,353.25 100.00 348,412,708.95 100.00
(3) There are no account receivable of the shareholders who hold over 5 %( 5% included) voting rights in report period.
(4) Main amount of Account receivable
In RMB/CNY
Relationship with Proportion in total account
Name of the company Amount Age
the Company
receivable (%)
Bureau of Finance of Government
219,696,519.00 Within 1year 76.49
Shenzhen Municipality institution
Guangdong Power Grid
The 3rd party 67,537,945.25 Within 1year 23.51
Company
Total 287,234,464.25 100.00
2. Other account receivable
(1) Other account receivable classified according to type:
In RMB/CNY
80
2015-6-30
Book Balance Bad debt provision
Category
Book value
Proportion Proportion
Amount (%) Amount (%)
Other account receivable with
individual major amount and
16,781,666.46 1.06 16,781,666.46 100.00 -
withdrawal bad debt provision
independently
Other accounts receivable with
minor amount and accounts
receivable with major amount 1,564,906,590.25 98.73 - - 1,564,906,590.25
found no devaluation after
individual devaluation test
Other account receivable with
individual minor amount but
3,396,673.11 0.21 3,048,979.11 89.76 347,694.00
withdrawal bad debt provision
independently
Total 1,585,084,929.82 100.00 19,830,645.57 1.25 1,565,254,284.25
(Continued)
Year-beginning
Book Balance Bad debt provision
Category
Proportion Proportion Book value
Amount (%) Amount (%)
Other account receivable with
individual major amount and
16,781,666.46 0.97 16,781,666.46 100.00 -
withdrawal bad debt provision
independently
Other accounts receivable with
minor amount and accounts
receivable with major amount 1,716,529,468.13 98.83 - - 1,716,529,468.13
found no devaluation after
individual devaluation test
Other account receivable with
individual minor amount but
3,396,673.11 0.20 3,048,979.11 89.76 347,694.00
withdrawal bad debt provision
independently
Total 1,736,707,807.70 100 19,830,645.57 1.14 1,716,877,162.13
(2)Other account receivable classified according to age:
81
In RMB/CNY
2015-6-30 Year-beginning
Age
Amount Proportion (%) Amount Proportion (%)
Within 1year 401,104,713.26 25.30 435,603,391.14 25.08
1 to 2years 814,306,622.62 51.37 819,306,622.62 47.18
2 to 3years 236,112,909.48 14.90 348,237,109.48 20.05
Over 3 years 133,560,684.46 8.43 133,560,684.46 7.69
Total 1,585,084,929.82 100.00 1,736,707,807.70 100.00
(3) Accrual for bad debt provision
①Other account receivable with single major amount and withdrawal bad debt provision for single
item
In RMB/CNY
Accruing
Other account receivable Book amount Bad debt provision Accrual reason
proportion(%)
Huiyang County Kangtai
14,311,626.70 14,311,626.70 100.00 Un-collectible
Industrial Company
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
②Other account receivable with individual minor amount but withdrawal bad debt provision
independently:
In RMB/CNY
Accruing
Other account receivable Book Balance Bad debt provision
proportion(%)
Dormitory amount receivable 2,083,698.16 1,736,004.16 83.31
Deposit receivable 1,312,974.95 1,312,974.95 100.00
Total 3,396,673.11 3,048,979.11 89.76
(4) Top 5 other account receivable
In RMB/CNY
proportion in total
Relationship with balance of other
Name of the company Year-end balance Age
the Company account
receivable(%)
82
Subsidiary of the
Shen Development 865,813,853.36 1-3 years 54.62
Company
Subsidiary of the
Zhongshan Power 539,167,676.48 1-3 years 34.02
Company
Subsidiary of the
Shen Investment Property 101,759,303.61 1-2 years 6.42
Company
Subsidiary of the Within 1year to Over
Weimei Power 47,438,459.44 2.99
Company 3 years
Environment Protection Subsidiary of the
7,858,878.45 1-2 years 0.50
Co., Company
Total 1,562,038,171.34 98.55
(5) Receivable from related parties
In RMB/CNY
proportion in
Relationship with the total balance of
Name of the company Year-end balance Age at year-end
Company other account
receivable(%)
Subsidiary of the
Shen Development 865,813,853.36 1-3 years 54.62
Company
Subsidiary of the
Zhongshan Power 539,167,676.48 1-3 years 34.02
Company
Shen Investment Subsidiary of the
101,759,303.61 1-2 years 6.42
Property Company
Subsidiary of the Within 1year to Over 3
Weimei Power 47,438,459.44 2.99
Company years
Environment Subsidiary of the
7,858,878.45 1-2 years 0.50
Protection Co., Company
Subsidiary of the
SINGAPORE LTD 212,337.56 Over 3 years 0.01
Company
Total 1,562,250,508.90 98.56
3. Long-term equity investment
(1) Category of long-term equity investment
In RMB/CNY
Item 2015-6-30 Year-beginning balance
83
Impair Impair
Book ment Book ment
Book value Book value
Balance provisio Balance provisio
n n
691,982,84 691,982,84 691,982,84 691,982,84
Investment to subsidiary - -
9.76 9.76 9.76 9.76
Investment to joint venture and
- - - - - -
affiliate enterprise
691,982,84 691,982,84 691,982,84 691,982,84
Total - -
9.76 9.76 9.76 9.76
(2) Investment to subsidiary
In RMB/CNY
Impairment Impairment
Investee Year-beginning Increased in Decreased provision provision
2015-6-30
company balance the Year in the Year accrual in Year-end
the Year balance
Shenzhen
26,650,000.00 - - 26,650,000.00 - -
Server
New Power 71,270,000.00 - - 71,270,000.00 - -
Zhongshan
410,740,000.00 - - 410,740,000.00 - -
Power
Engineering
6,000,000.00 - - 6,000,000.00 - -
Co.,
Weimei Power 115,319,049.76 - - 115,319,049.76 - -
SINGAPORE
6,703,800.00 - - 6,703,800.00 - -
LTD
Environment
Protection 55,300,000.00 - - 55,300,000.00 - -
Co.,
Shen
- - - - - -
Development
Shen
Investment - - - - - -
Property
Total 691,982,849.76 - - 691,982,849.76 - -
4. Operation revenue/operation cost
84
In RMB/CNY
Current year Last year
Item
Revenue Cost Revenue Cost
Main business 172,227,786.19 217,322,254.11 195,266,910.43 338,131,663.22
Other business 9,860,763.58 36,089.91 10,566,609.30 571,584.56
Total 182,088,549.77 217,358,344.02 205,833,519.73 338,703,247.78
5. Supplement of cash flow statement
In RMB/CNY
Item Current year Last year
(1) Net profit adjusted as cash flow from operation
activities:
Net profit -1,486,412.90 -26,411,819.71
Add: Assets for impairment - -
Depreciation of fixed assets 7,816,237.71 8,995,348.46
Amortization of intangible assets 720,120.18 674,323.56
Amortization of long-term expenses to be amortized - -
Loss from disposal of fixed assets, intangible assets and
- -
other long-term assets income)
Abandonment loss from fixed assets - -
Financial expenses (income) 77,153,552.06 64,338,852.85
Investment losses (income) - -
Decrease of deferred income tax assets ( increased ) - -
Decrease of inventory ( increased ) -1,909,029.38 0.00
Decrease of operational receivable ( increased ) 211,798,431.12 61,139,147.93
Increase of operational payable ( decreased ) -72,606,435.01 183,897,713.75
Other - -
Net cash flow from operation activities 221,486,463.78 292,633,566.84
2. Major investment and financing activities not
involved with cash income and expenses:
Debt transfer to assets - -
Convertible bonds due within one year - -
85
Financing rent-in fixed assets - -
3. Net changes of cash and cash equivalent:
Ending balance of cash and cash equivalent 556,719,432.74 454,942,282.75
Less: Year-beginning balance of cash and cash
332,803,493.04 264,557,683.68
equivalent
Net increase of cash and cash equivalent 223,915,939.70 190,384,599.07
XIV. Supplementary information
1. Statement of non-recurring gains/losses
In RMB/CNY
Item This Year Last Year
Gains/losses from the disposal of non-current asset 17,323.58 -
Governmental subsidy calculated into current gains and losses,
with closely related with the normal business of the Company,
1,815,600.78 1,815,600.76
excluding the fixed-amount or fixed-proportion governmental
subsidy according to the unified national standard)
Gains/losses of debt restructuring - -
Switch-back of the impairment reserves of receivables that
- -
has impairment test independently
Natual gas import VAT refund 43,717,420.50 -
Other non-operating income and expenditure except for the
191,808.55 217,511.72
aforementioned items
Subtotal 45,742,153.41 2,033,112.48
Impact on income tax - 65,004.62
Impact on minority shareholders’ equity (post-tax) 13,197,584.46 67,401.72
Total 32,544,568.95 1,900,706.14
2. ROE and EPS
In RMB/CNY
EPS
Profit in the Period Weighted average
86
ROE (%) Basic EPS Diluted EPS
Net profit attributable to shareholders of the listed
-8.41% -0.17 Not applicable
company
Net profit attributable to shareholders of the listed
company after deducting non-recurring gains and -11.23% -0.22 Not applicable
losses
87
