深圳南山热电股份有限公司 2018 年半年度报告全文
深圳南山热电股份有限公司
Shenzhen Nanshan Power Co., Ltd.
Semi-annual Report 2018
2018-024
August 2018
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深圳南山热电股份有限公司 2018 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.
President Li Xinwei - principal of the Company, Director GM Chen Yuhui,
CFO- Dai Xiji and Deputy GM Wang Yi(acting manager of the financial
management dept.), the person in charge of accounting works (accounting
principal), hereby confirm that the Financial Report of Semi-Annual Report
2017 is authentic, accurate and complete.
All directors are attended the Board Meeting for annual report deliberation
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.
The Company has no plans of cash dividend distributed, no bonus shares and
has no share converted from capital reserve either.
The report has been prepared in both Chinese and English, for any
discrepancies, the Chinese version shall prevail. Please read the full report
seriously.
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深圳南山热电股份有限公司 2018 年半年度报告全文
Content
Section I Important Notice, Contents and Paraphrase .................................................................. 2
Section II Company Profile and Main Financial Indexes .............................................................. 5
Section III Summary of Company Business .................................................................................... 8
Section IV Discussion and Analysis of the Operation ................................................................... 10
Section V Important Events ............................................................................................................ 20
Section VI Changes in shares and particular about shareholders .............................................. 33
Section VII Preferred Stock ............................................................................................................ 37
Section VIII Particulars about Directors, Supervisors, Senior Executives and Employees ..... 38
Section IX Corporate -bond ............................................................................................................ 38
Section X Financial report .............................................................................................................. 38
Section XI Documents available for reference .............................................................................. 39
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深圳南山热电股份有限公司 2018 年半年度报告全文
Paraphrase
Items Refers to Definition
Company, the Company, Shen Nan Dian, the
Refers to Shenzhen Nanshan Power Co., Ltd.
Listed Company
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 Environment Protection Co., Refers to Shenzhen Shen Nan Dian Environment Protection Co., Ltd.
Server Co., Refers to Shenzhen Server Petrochemical Supplying Co., Ltd.
New Power Co., Refers to Shenzhen New Power Industrial Co., Ltd.
Singapore Company Refers to Shen Nan Energy (Singapore) Co., Ltd.
Nanshan Thermal Plant Refers to Nanshan Thermal Plant 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
Syndisome Company Refers to Hong Kong Syndisome Co., Ltd.
Article of Association Refers to Article of Association of Shenzhen Nanshan Power Co., Ltd.
Except the special description of the monetary unit, the rest of the
Yuan, ten thousand Yuan, one hundred million Refers to
monetary unit is RMB Yuan, ten thousand Yuan
Reporting period Refers to 1 January 2018 to 30 June
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深圳南山热电股份有限公司 2018 年半年度报告全文
Section II Company Profile and Main Finnaical Indexes
I. Company Profile
Short form of the stock Shen Nandian A, Shen Nandian B Code for share 000037, 200037
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in
Shenzhen Nanshan Power Co., Ltd.
Chinese)
Short form of the Company
Shen Nandian
(in Chinese) (if applicable)
Foreign name of the Company
Shenzhen Nanshan Power Co., Ltd.
(if applicable)
Short form of foreign name of
Shen Nan Dian
the Company (if applicable)
Legal representative Li Xinwei
II. Contact person/ways
Secretary of the Board Rep. of securities affairs
Name Zhang Jie
16/F-17/F, Hantang Building, OCT,
Contact adds. Nanshan District, Shenzhen, Guangdong
Province
Tel. 0755-26003611
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 2017.
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深圳南山热电股份有限公司 2018 年半年度报告全文
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2017.
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes √ No
Increase/decrease in this
Current period Same period of last year
report y-o-y
Operating revenue (RMB) 1,079,760,214.80 872,962,697.33 23.69%
Net profit attributable to shareholders of
30,012,095.22 -22,629,201.38 -232.63%
the listed Company (RMB)
Net profit attributable to shareholders of
the listed Company after deducting 28,904,372.78 -25,113,210.11 -215.10%
non-recurring gains and losses (RMB)
Net cash flow arising from operating
52,590,634.28 -65,448,855.27 -180.35%
activities (RMB)
Basic earnings per share (RMB/Share) 0.050 -0.040 -225.00%
Diluted earnings per share (RMB/Share) 0.050 -0.040 -225.00%
Weighted average ROE 1.46% -1.30% -212.31%
Increase/decrease in this
End of current period End of last period report-end over that of last
period-end
Total assets (RMB) 3,264,506,507.10 2,883,804,392.70 13.20%
Net assets attributable to shareholder of
1,988,630,180.61 1,958,618,085.39 1.53%
listed Company (RMB)
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
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深圳南山热电股份有限公司 2018 年半年度报告全文
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.
VI. 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
-849,018.73 Abandonment loss of fixed assets
write-off that accrued for impairment of assets)
Governmental subsidy calculated into current gains and losses
(while closely related with the normal business of the Company, Government grants with assets
2,122,867.64
excluding the fixed-amount or fixed-proportion governmental concerned are amortized
subsidy according to the unified national standard)
Other non-operating income and expenditure except for the
-5,225.00
aforementioned items
Less: impact on income tax -113,500.37
Impact on minority shareholders’ equity (post-tax) -47,401.10
Total 1,107,722.44 --
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
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, the Company has no such items in the reporting period for the aforesaid
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深圳南山热电股份有限公司 2018 年半年度报告全文
Section III Summary of Company Business
I. Main businesses of the Company in the reporting period
Does the Company need to comply with the disclosure requirement of the special industry
No
The Company is specialized in power and thermal supply, as well as providing technical consulting and technical services for power
plant (stations). The Company has three wholly-owned or holding gas turbine plants, which equipped with seven sets of 9E gas steam
combined cycle power generating units, with total installed capacity up to 1260 MW (Nanshan Thermal Plant: 3×180 MW,
Zhongshan Nam Long Power Plant : 2×180 MW, Dongguan Gaobu Power Plant: 2×180 MW). These three gas turbine plants are all
located in the power load center of Pearl River Delta area, which are the main peaking power sources in their areas. During the
reporting period, the Company is specialized in business of gas-steam combined cycle power generation, and its subsidiary Nanshan
Thermal Plant, Zhongshan Nam Long Power Plant and Dongguan Gaobu Power Plant are all in the state of normal production and
operation. On the basis of paying close attention to safety management, the Company closely followed the pace of power market
reform in Guangdong Province, and organized Zhongshan Nam Long Power Plant and Dongguan Gaobu Power Plant to actively
participate in the marketing competition of power market and achieved remarkable results. In the first half of the year, the Company
completed the electric quantity settlement of 2.073 billion KWH. Among them, the subordinate power plants completed the actual
on-grid power of 1.59 billion KWH, an increase of 19.82% on a year-on-year basis; Zhongshan Nanlang Power Plant and Dongguan
Gaobu Power Plant totally completed the contractual power transfer of 483 million KWH.
Except for the aboved mentioned generation business, subordinate Shen Nan Dian Engineering Company continued to open up the
technical consultation and technical services for domestic and international gas turbine power station construction projects, the Shen
Nan Dian Environment Protection Company used the waste heat generated by the gas turbine to conduct the drying treatment of wet
sewage sludge of the sewage treatment plant, and realized the sludge reduction, harmless treatment, and comprehensive utilization of
resources.
II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
Equity assets N/A
Fixed assets N/A
Intangible assets N/A
The expenses of technical improvement from Shen Nan Dian Zhongshan Company and
Construction in process
Shen Nan Dian Dongguan Company increased
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深圳南山热电股份有限公司 2018 年半年度报告全文
2. Main overseas assets
□ Applicable √ Not applicable
III. Core Competitiveness Analysis
Does the Company need to comply with the disclosure requirement of the special industry
No
1. Competitiveness improvement of the power market: During the reporting period, while actively striving for the base electric
quantity, the Company increased the efforts in the power marketing, innovated the business management model, set up the power
selling centers, and devoted research on the trading rules of power market, formulated the power trading strategy, and built
mathematical models with practical operability through a large number of data analysis, which effectively improved the
competitiveness of power market and provided strong supports for Zhongshan Nam Long Power Plant and Dongguan Gaobu Power
Plant to fight for contractual power transfer and make success in concentrated competition trading.
2. Up and running of ShenRan natural gas terminal station: During the reporting period, the Company overcame the pressure of tight
time and heavy tasks, completed the construction of technical transformation project for ShenRan natural gas terminal station of
Nanshan Thermal Plant in a short period of time, broadened the natural gas supply channels of the plant, improved the stability and
reliability of the gas supply, created favorable conditions for reducing the Company’s natural gas procurement cost, and effectively
improved the operational efficiency of the Company’s stock assets.
Found more other core competitiveness analysis in Annual Report 2017
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深圳南山热电股份有限公司 2018 年半年度报告全文
Section IV Discussion and Analysis of the Operation
I. Introduction
In the first half of 2018, China’s macro-economy continued the overall smooth and stable development trend, the structural
adjustments were further advanced, the new and old kinetic energy continued to be transformed, and the quality and efficiency
improved steadily. The economic operation of Guangdong Province is also steadily improving, and the main leading indicators of the
industrial economy are generally better than the same period last year. At the same time, since the beginning of this year, especially
the middle of May, the continuous hot weather has increased the demand for electricity. According to the statistics and analysis of
relevant departments, from January to June, the whole province’s total electricity consumption reached 293.049 billion kwh, an
increase of 9.28% on a year-on-year basis, and the power demand grew rapidly. However, due to the tight supply of upstream gas
sources and the difficulty in purchasing incremental gas sources, gas turbine power plants have the risks of out of gas and outage
during the summer.
During the reporting period, the Company overcame the pressure of shortage of gas, fierce market competition and aging equipment,
and continued to adhere to the “1+5” strategic roadmap as the guideline, took “focusing on benefits, increasing gas sources, and
promoting transformation” as the management policy, strived to improve the operational benefits of main business, continuously
improved the core competitiveness, and innovated and carried out a series of fruitful work, and achieved a year-on-year turnaround in
operating results. First is to pay close attention to the safety production, environmental protection and economic operation of
subordinate power plants, which achieved the safety “five no” and reached the environmental protection standards. Second is to set
up the electricity selling centers, while striving for the base electric quantity, the Company thoroughly studied the trading rules of
electricity market in Guangdong Province and conscientiously formulated the trading strategies for contractual electricity quantity
transfer transactions and monthly concentrated bidding transactions to maximize the production efficiency. Third is to cooperate with
Shenzhen Gas Group Co., Ltd. to complete the construction of technical transformation project for ShenRan natural gas terminal
station of Nanshan Thermal Plant, and signed the Natural Gas Purchase and Sale Agreement with it, which not only broadened the
supply channels of natural gas but also eased the short supply of upstream gas sources. Fourth is to establish a fuel center, give full
play to the advantages of large-scale procurement, and coordinate the procurement of natural gas in various power plants within the
system, which enhanced the Company’s bargaining power; Fifth is to establish a fund center which not only guaranteed the fund
security but also effectively saved the financial costs by strengthening the fund management within the system. The sixth is to
steadily promote the various wok of the “Shenzhen Blue” technical transformation project in the early stages according to the
relevant government policies, and strive to complete the upgrade of at least one set of low-nitrogen burners in accordance with the
requirements of the government. The seventh is to track the government’s policy dynamics and related work progress on the land of
Qianhai and do its utmost to protect the interests of the Company’s shareholders and employees. The eighth is to further promote the
Company’s standardized operation level and management performance, we revised the Company’s “Articles of Association” and
other six corporate governance systems, formulated and improved relevant management regulations and business processes, and set
up an information center to provide supports for further enhancing the management efficiency. Ninth is to strengthen the party
building work, and incorporate the relevant regulations of party building work into the “Articles of Association” to organically
combine the strengthening of party leadership with the improvement of corporate governance.
During the reporting period, the Company achived operating income of 1079.76 million Yuan, net profit attributable to parent
Company amounted as 30.01 million Yuan, which increased 52.64 million Yuan over that of last period noted as (22.63) million
Yuan, basic earnings per share comes to 0.05 Yuan.
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深圳南山热电股份有限公司 2018 年半年度报告全文
II. Main business analysis
Found more in “I. Introduction” in “Discussion and Analysis of the Operation”.
Y-o-y changes of main financial data
In RMB
Y-o-y
Current period Same period of last year Reasons for changes
increase/decrease
Mainly due to the increase of
Operating revenue 1,079,760,214.80 872,962,697.33 23.69%
income from generating
Mainly due to the increase of costs
Operating costs 969,695,053.03 827,761,559.33 17.15%
from generating
The sludge disposal expenses from
Sales expenses 1,650,238.04 1,413,079.30 16.78% Shen Nan Dian Environment
Protection Company increased
Remuneration and additional
Administration expenses 46,681,650.04 41,191,218.46 13.33%
insurance increased
Finance expenses 22,294,285.93 31,679,390.45 -29.63% Size of the loans declined
Income tax expenses 8,092,879.62 920,495.87 779.19% Total profit increased
R & D revenue 0.00 0.00 0.00% -
Net cash flow arising
52,590,634.28 -65,448,855.27 -180.35% The electricity income increased
from operating activities
Net cash flow arising
from investment -55,487,860.52 -39,051,315.46 42.09% Purchased more fixed assets
activities
Net cash flow arising The net in-flow from bank loans
354,946,385.41 -964,425,970.10 -136.80%
from financing activities increased
Net increase of cash and Net cash flow from operating and
352,124,110.16 -1,069,082,845.45 -132.94%
cash equivalent financing activity increased
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 industry 1,029,148,179.65 938,086,620.78 8.85% 22.22% 16.50% 4.48%
Engineering labor 18,700,792.84 12,077,533.63 35.42% 133.47% 76.99% 20.61%
Sludge drying 30,181,205.77 18,555,258.51 38.52% 43.71% 23.46% 10.08%
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深圳南山热电股份有限公司 2018 年半年度报告全文
According to products
Power marketing 1,029,148,179.65 938,086,620.78 8.85% 22.22% 16.50% 4.48%
Engineering labor 18,700,792.84 12,077,533.63 35.42% 133.47% 76.99% 20.61%
Sludge drying 30,181,205.77 18,555,258.51 38.52% 43.71% 23.46% 10.08%
According to region
Shenzhen 589,753,220.23 522,731,356.48 11.36% 25.74% 17.05% 6.58%
Zhongshan 239,056,530.40 214,543,154.75 10.25% 3.81% -1.64% 4.98%
Dongguan 249,220,427.63 231,444,901.69 7.13% 45.13% 42.55% 1.69%
III. Analysis of the non-main business
√Applicable □ Not applicable
In RMB
Amount Ratio in total profit Note Whether be sustainable (Y/N)
Long-term equity investment
Investment income -1,076,904.31 -2.92% Y
income based on Equity
Changes in fair
0.00 0.00%
value
Asset impairment 0.00 0.00%
Non-operating
4,775.00 0.01%
income
Non-operating Abandonment loss of fixed
859,018.73 2.33% N
expenditure assets
IV. Assets and liability
1. Major changes of assets composition
In RMB
End of same period of last
End of the Period
year Ratio
Notes of major changes
Ratio in total Ratio in total changes
Amount Amount
assets assets
Monetary fund 774,980,279.97 23.74% 438,316,169.81 15.20% 8.54% Increase of the bank loans
Account
277,917,141.93 8.51% 113,349,775.76 3.93% 4.58% Electricity charge receivable increased
receivable
Inventory 69,716,098.15 2.14% 77,834,903.89 2.70% -0.56% Deposit spare declined
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深圳南山热电股份有限公司 2018 年半年度报告全文
Investment Accumulated depreciation increased in
2,704,371.51 0.08% 2,802,440.31 0.10% -0.02%
property the period
Long-term equity The investment losses recognized
17,177,769.09 0.53% 18,254,673.40 0.63% -0.10%
investment under the Equity in the period
1,414,281,661. 1,420,620,565. Accumulated depreciation increased in
Fix assets 43.32% 49.26% -5.94%
43 05 the period
The expenses of technical
Construction in improvement from Shen Nan Dian
68,499,522.92 2.10% 50,958,741.92 1.77% 0.33%
process Zhongshan Company and Shen Nan
Dian Dongguan Company increased
Short-term loans 911,500,000.00 27.92% 515,850,000.00 17.89% 10.03% Increase of the bank loans
Long-term loans 25,940,000.00 0.79% 25,940,000.00 0.90% -0.11%
2. Assets and liability measured by fair value
□ Applicable √ Not applicable
3. Assets rights restricted till end of the period
Not applicable.
V. Investment
1. Overall situation
In January 2010, the Company invested to CPI Jiangxi Nuclear Power Co., Ltd. in nuclear power project and holds 5% stake. As to
the end of the reporting period, the investment of the Company amounted to RMB 60,615,000. The preparatory work of the project is
in progress.
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment caring in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
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深圳南山热电股份有限公司 2018 年半年度报告全文
The Company had no securities investment in Period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in Period.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company has no sales of major assets in Period-end.
2. Sales of major equity
□ Applicable √ Not applicable
VII. Analysis of main Holding Company and stock-jointly companies
√Applicable □Not applicable
In RMB
Register Operating Operating
Name Type Main business Total assets Net Assets Net profit
capital revenue profit
Technology RMB 215,278,995.0 167,586,876. 203,631,106. 951,862.23 647,113.52
development 113.85 3 15 73
regarding to million
application of
remaining heat
Shenzhen (excluding
New Power restricted items)
Subsidiary
Industrial and power
Co., Ltd. generation with
remaining heat.
Add: power
generation
through burning
machines.
Shenzhen RMB 79 138,483,201.3 103,365,140. 30,879,369.4 10,015,105 7,626,412.19
Shen Nan million 3 17 8 .16
Dian Subsidiary Sludge drying
Environment
Protection
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深圳南山热电股份有限公司 2018 年半年度报告全文
Co., Ltd.
Engaged in the 33,170,508.43 22,898,881.9 18,700,792.8 4,615,443. 4,615,443.80
technology 6 4 80
consultant
service of
gas-steam
combined cycle
power plant
(station),
maintenance and
Shenzhen overhaul of
Shennandian running
Turbine equipment for RMB 10
Subsidiary
Engineering gas-steam million
Technology combined cycle
Co., Ltd. power plant
(station). Import
and export of
goods and
technology
(excluding
distribution and
monopolized
commodity of
the State)
Self-operation of 131,265,061.0 95,212,058.1 500,076.21 -2,512,426. -2,512,426.25
fuel oil or import 1 4 25
agent business;
Trading(manufac
ture, storage and
transportation
excluded) of
Shenzhen diesel,
Server lubricating,
RMB 53.3
Petrochemica Subsidiary liquefied
million
l Supplying petroleum gas,
Co., Ltd. natural gas,
compressed gas
& liquefied gas
and chemical
products(chemic
al hazard
excluded);
investment,
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深圳南山热电股份有限公司 2018 年半年度报告全文
construction and
technical
assistance of
relevant
supporting
facility of
liquefied
petroleum gas
and natural gas;
import and
export of cargo
and
technologies,
domestic
trading(monopol
ized commodity
and commodity
under special
government
control
excluded);
leasing business.
Licensing
project: fuel oil
warehousing
(refined oil
products
excluded);
ordinary freight,
cargo specific
transportation
(container) and
cargo specific
transportation
(pot-type)
Power 742,638,445.9 -60,449,414. 239,056,530. 1,978,342. 1,968,342.26
generation by 4 67 40 26
Shen Nan
burning
Dian
machines, power
(Zhongshan) RMB 746.8
Subsidiary generation by
Electric million
remaining heat,
Power Co.,
power supply
Ltd.
and heat supply
(excluding
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深圳南山热电股份有限公司 2018 年半年度报告全文
pipeline network
of heat supply),
lease of dock
and oil storage
(excluding oil
products,
dangerous
chemicals and
inflammable and
explosive
materials).
Shen Nan 731,535,829.3 99,460,765.7 249,516,171. -1,065,959. -1,065,959.31
Dian 4 3 77 31
Construction and
(Dongguan)
operation of US $ 35.04
Weimei Subsidiary
natural gas million
Electric
power plants.
Power Co.,
Ltd
Shen Nan Oil product 344,352,056.9 341,853,709. / 155,214.19 155,214.19
Energy trading, spare US $ 0.9 0 78
Subsidiary
(Singapore) part of the gas million
Co., Ltd. turbine agent
Development, RMB 3,705,302,370 1,197,574,23 9,222,121.41 2,497,851. 2,517,851.69
building & 1193.27 .27 5.52 69
operating and million
management of
the nuclear
power project;
producing
electricity and
relevant
CPI Jiangxi
Stock products; foreign
Nuclear
jointly trade
Power Co.,
Company operation(exclud
Ltd.
ing the import
and export
business of cargo
exercise
state-run trading
management);
(except for the
projects with
special
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深圳南山热电股份有限公司 2018 年半年度报告全文
permission from
the State)
VIII. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance from January – September 2018
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
X. Risks and countermeasures
1. Safety production: various degrees of ageing signs of the power generating equipment in the subsidiary power plants of the
Company continue to emerging, potential failures and security risks are increasing by years, which raise higher demands on
equipment management and service input, furthermore, the age structure of the Company is gradually ageing, we are facing great
challenges in aspect of safety management. The Company shall strengthen the maintenance and regular examination of the
equipment, enhance the security education and training of the employees, improve the responsibility system of safety production,
strictly implement safety management system, raise the awareness of safety and responsibility of personnel at all levels, to ensure the
normal operation of equipment and eliminate the potential failures and accidents in the bud.
2. Fuel Supplying: According to the pre-judgment of the power market situation in Guangdong Province, the whole province’s
electric power supply shall be tight in the third quarter, and the maximum load demand is adjusted to 120 million kilowatts, a
year-on-year growth of 10.5%. However, due to the tight supply of upstream gas sources and the continuous hot weather, the demand
for power generation load has exceeded expectations, the Company’s existing contracted quantity of natural gas is expected to be
difficult to meet the demand for power generation in the second half of the year, and the supply of natural gas is uncertain. At the
same time, affected by factors such as the international situation and tight source gas supply, the price of natural gas is expected to
rise in the second half of the year, which will cause certain pressure on the Company’s production and operation. In the second half
of the year, the Company will give full play to the advantages of large-scale procurement and the multiple gas source regulatory
function to reduce the procurement cost of natural gas while meeting the demand for electricity production. On the basis of
considering both the supply and the cost of natural gas, the Company will earnestly do a good job in the marketing analysis of power
market, and do its utmost to improve the profitability of the main business of electric power in line with the principle of “benefit
first”.
3. Environmental protection policy: During the reporting period, the Shenzhen Municipal Government formulated the “Shenzhen
Blue” Sustainable Action Plan and clarified that “the whole city’s seven gas-fired power plants will be supervised and urged to
respectively complete the upgrade of low-nitrogen burners or the transformation of flue gas denitrification of more than one gas
turbine set before October 31, 2018. From November 1 st, 2018, the gas turbine sets that have not completed low-nitrogen burner
upgrade or flue gas denitrification transformation shall not be dispatched to generate electricity.” (For details, please refer to the
Notice About Received the Notification of Shenzhen Municipal People’s Government on Printing and Issuing the 2018 “Shenzhen
Blue” (Notice No.: 2018-015) Sustainable Action Plan that the Company disclosed on China Securities Journal, Securities Times,
Hong Kong Commercial Daily and www.cninfo.com.cn), which increased the Company’s environmental pressure to a certain extent.
At present, the Company has started the preliminary work of related technical transformation, and strives to complete the upgrade of
at least one set of low-nitrogen burners within the prescribed time limit according to the government requirements. However, as of
18
深圳南山热电股份有限公司 2018 年半年度报告全文
the end of the reporting period, the government’s relevant financial subsidy policy has not yet been introduced. The Company will
actively follow the implementation of government subsidy policy and formulate the technical reform plan for the remaining sets
based on the actual conditions.
4. Main business operation: Although the Company achieved a turnaround in operating performance in the first half of the year, the
Company’s main business direction and operating environment have not fundamentally changed; there are still some uncertainties
about whether it can achieve the continuous profitability, in addition, the relevant matters concerning the land where Nanshan
Thermal Plant is located have not yet been clarified, therefore, the Company’s main business operation still faces challenges. The
Company will strive to improve the profitability and overall operating efficiency of its main business by strengthening the
management of its existing assets. Meanwhile, the Company will actively explore diversified business models and transformational
development opportunities to create better conditions for the Company’s sustainable operation and healthy development.
The Company reminds investors to pay attention to the major risks and other risks that the Company may face in this report and in
previous periodic reports so as to prudently make rational investment decisions.
19
深圳南山热电股份有限公司 2018 年半年度报告全文
Section V Important Events
I. In the report period, the Company held annual shareholders’ general meeting and
extraordinary shareholders’ general meeting
1. Shareholders’ General Meeting in the report period
Ratio of investor
Session of meeting Type Opening date Date of disclosure Index of disclosure
participation
“Resolution Notice
of Annual General
Meeting 2017”
No.:2018-014,
Annual General
released on “China
Meeting (AGM) of AGM 38.81% 2018-04-12 2018-04-13
Securities Journal”
2017
“Securities Times”
“Hong Kong
Commercial Daily”
and Juchao Website
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for 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.
20
深圳南山热电股份有限公司 2018 年半年度报告全文
III. Commitments that the committed party as the Company, actual controller, shareholders,
related party and buyer have fulfilled during the reporting period and have not yet fulfilled
by the end of reporting period
□ Applicable √ Not applicable
There are no commitments that the committed party as the Company, actual controller, shareholders, related party and buyer have
fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
IV. Appointment and non-reappointment (dismissal) of CPA
Financial report has been audit or not
□ Yes √ No
Not been audited
V. Explanation from Board of Directors, Supervisory Committee for “Qualified Opinion”
that issued by CPA
□ Applicable √ Not applicable
VI. Explanation from the Board for “Qualified Opinion” of last year’s
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in Period.
21
深圳南山热电股份有限公司 2018 年半年度报告全文
VIII. Lawsuits
Material lawsuits and arbitration
□Applicable √Not applicable
There are no material lawsuits and arbitration in the period
Other litigation items
□Applicable √Not applicable
IX. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in Period.
X. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan or other emplo
□ Applicable √ Not applicable
The Company has no equity incentive plan, employee stock ownership plans or other employee incentives in Period.
XII. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
The Company had no related transaction with routine operation concerned in Period.
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in Period.
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in Period.
4. Contact of related credit and debt
√Applicable □ Not applicable
22
深圳南山热电股份有限公司 2018 年半年度报告全文
Whether has non-operational contact of related liability and debts or not
√ Yes □ No
Claim receivable from related party:
Whether has Balance at Current Current Current
Ending
non-busines period-begin newly added recovery interest
Related balance (10
Relationship Causes s capital (10 (10 (10 Interest rate (10
party thousand
occupying thousand thousand thousand thousand
Yuan)
or not (Y/N) Yuan) Yuan) Yuan) Yuan)
Shen Nan
Routine
Dian
Subsidiary current N 60,793.38 20,050.16 10,042 5.20% 1,501.98 72,303.52
Zhongshan
account
Co.,
Shen Nan
Routine
Dian
Subsidiary current N 28,809.47 40,818.72 20,031.82 5.20% 760.22 50,356.59
Dongguan
account
Co.,
Shen Nan
Dian Routine
Environmen Subsidiary current N 1,275.39 640.91 645.32 1,270.98
t Protection account
Co.,
Shen Nan
Routine
Dian
Subsidiary current N 134.96 95.47 134.96 95.47
Engineering
account
Co.,
Routine
Singapore
Subsidiary current N 147.71 147.71
Company
account
Influence on business
performance and financial
Current assets RMB 329.1789 million increased in the Period.
status of the Company
from related liabilities
Debts payable to related party:
Balance at Current Current Current Ending
period-begin newly added recovery interest balance (10
Related party Relationship Causes Interest rate
(10 thousand (10 thousand (10 thousand (10 thousand thousand
Yuan) Yuan) Yuan) Yuan) Yuan)
Routine
New Power
Subsidiary current 6,380.34 33,207.95 31,209.97 8,378.32
Co.,
account
23
深圳南山热电股份有限公司 2018 年半年度报告全文
Routine
Server Co., Subsidiary current 7,000 68.51 3.92% 137.78 7,069.27
account
Routine
Syndisome
Subsidiary current 361.77 22.55 17.7 366.62
Company
account
Influence on business
performance and financial
Current liability RMB 20.721 million increased in the Period
status of the Company from
related debts
5. Other major related transactions
□Applicable √Not applicable
There are no other major related transactions in the period
XIII. Non-business capital occupying by controlling shareholders and its related parties
□ Applicable √ Not applicable
No non-business capital occupied by controlling shareholders and its related parties in Period.
XIV. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
√Applicable □ Not applicable
In line with the Genset Asset Trusteeship Contract of Shenzhen New Power Industrial Co., Ltd. re-signed with New Power Company in
August 2017, 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 7.3922 million was obtained by the Company in reporting period.
Gains/losses to the Company from projects that reached over 10% in total profit of the Company in reporting period
□Applicable √Not applicable
The Company has no gains/losses that reached over 10% in total profit of the Company in reporting period
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in Period.
(3) Leasing
□ Applicable √ Not applicable
24
深圳南山热电股份有限公司 2018 年半年度报告全文
No leasing for the Company in Period.
2. Major guarantees
√Applicable □ Not applicable
(1) Guarantees
In 10 thousand Yuan
Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
Guarante
Related
Actual date of e for
Name of the Announce
Guarantee happening (Date Actual Guarantee Guarantee Implemen
Company ment related
of signing guarantee limit type term
guaranteed disclosure limit ted (Y/N)
agreement) party
date
(Y/N)
Total actual occurred external
Total approving external
0 guarantee in report period 0
guarantee in report period (A1)
(A2)
Total approved external Total actual balance of
guarantee at the end of report 0 external guarantee at the end 0
period ( A3) of report period (A4)
Guarantee of the Company for the subsidiaries
Guarante
Related
Actual date of e for
Name of the Announce
Guarantee happening (Date Actual Guarantee Guarantee Implemen
Company ment related
limit of signing guarantee limit type term
guaranteed disclosure ted (Y/N)
agreement) party
date
(Y/N)
Shen Nan Dian General
2017-03-28 5,000 2017-07-07 1,108 One year N Y
Zhongshan Co., assurance
Shen Nan Dian General
2017-03-28 4,400 2017-05-27 2,594 Five years N Y
Zhongshan Co., assurance
Shen Nan Dian General
2017-03-28 5,000 2017-08-17 3,150 One year N Y
Zhongshan Co., assurance
Shen Nan Dian General
2017-03-28 13,500 2017-12-13 1,067 One year N Y
Dongguan Co., assurance
Shen Nan Dian 2017-03-28 10,000 2017-07-27 5,000 General One year N Y
25
深圳南山热电股份有限公司 2018 年半年度报告全文
Dongguan Co., assurance
Shen Nan Dian General
2017-03-28 10,000 2017-07-14 5,000 One year N Y
Dongguan Co., assurance
General
New Power Co., 2017-03-28 10,000 2018-03-09 2,000 One year N Y
assurance
Total amount of actual
Total amount of approving
occurred guarantee for
guarantee for subsidiaries in 57,900 19,919
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 57,900 19,919
the end of reporting period
end of reporting period (B3)
(B4)
Guarantee of the subsidiary for the subsidiaries
Guarante
Related
Actual date of e for
Name of the Announce
Guarantee happening (Date Actual Guarantee Guarantee Implemen
Company ment related
limit of signing guarantee limit type term
guaranteed disclosure ted (Y/N)
agreement) party
date
(Y/N)
Total amount of actual
Total amount of approving
occurred guarantee for
guarantee for subsidiaries in 0 0
subsidiaries in report period
report period (C1)
(C2)
Total balance of actual
Total amount of approved
guarantee for subsidiaries at
guarantee for subsidiaries at the 0 0
the end of reporting period
end of reporting period (C3)
(C4)
Total amount of guarantee of the Company (total of three abovementioned guarantee)
Total amount of approving Total amount of actual
guarantee in report period 57,900 occurred guarantee in report 19,919
(A1+B1+C1) period (A2+B2+C2)
Total amount of approved Total balance of actual
guarantee at the end of report 57,900 guarantee at the end of report 19,919
period (A3+B3+C3) period (A4+B4+C4)
The proportion of the total amount of actually guarantee in the
10.02%
net assets of the Company (that is A4+ B4+C4)
Including:
Amount of guarantee for shareholders, actual controller and its 0
26
深圳南山热电股份有限公司 2018 年半年度报告全文
related parties (D)
The debts guarantee amount provided for the guaranteed
parties whose assets-liability ratio exceed 70% directly or 17,919
indirectly (E)
Proportion of total amount of guarantee in net assets of the
0
Company exceed 50% (F)
Total amount of the aforesaid three guarantees (D+E+F) 17,919
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)
(2) Guarantee outside against the regulation
□ Applicable √ Not applicable
No entrust financing and entrust loans for the Company in reporting period.
3. Other material contracts
√Applicable □Not applicable
The
The
assesse
book
d
The The value Whethe
value The The
name name The of the Name of r
of the base Bargain perform The
of the of the date of assets the Pricing connect Inciden
contract assets date price(R ance by date of
contrac contract signatur involve evaluation principl ed ce Index
object involve evaluati MB’00 the end disclos
ting ed e of the d in the organizatio es transact relation
d in the on (if 00) of the ure
Compa Compa contract contract n(if any) ion(Y/
contract any) term
ny ny (RMB’ N)
(RMB’
0000)(i
0000)(i
f any)
f any)
China The Compo Compo Notice
offshor master sed of sed of of
e oil agreem natural liquefie Purchas
and gas Liquefi ent gas d 15 Dec. ing
The Not In
Refco ed signed prices, natural 2012; Changy
Compa N applica progres
Group natural on 15 the cost gas 22 Aug. ue
ny ble s
Ltd gas January of prices, 2017 Natural
Guangd 2013 integrat the cost Gas
ong with ed of (Notice
Branch( valid services integrat No.:
27
深圳南山热电股份有限公司 2018 年半年度报告全文
China until 31 and tax. ed 2012-0
offshor Decem services 54) and
e oil ber and tax. Resolut
and gas 2017. ion
Refco The Notice
Group two of the
Ltd parties Extraor
Guangd are dinary
ong entered 21st
Sales into Meetin
Branch, supple g of 7th
Zhuhai mentar BOD
Sales y (Notice
Branch) agreem No.:
) ent on 2017-0
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August release
2017, d on
and China
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d the es
master Journal,
agreem Securiti
ent for es
one Times,
year. Hong
Kong
Comme
rcial
Daily
and
Juchao
Website
Compo Compo Notice
CNOO sed of sed of of
Shen C natural liquefie Major
Nan Refco Liquefi gas d Contrac
Not In
Dian Group ed 2013-1 prices, natural 2013-1 t
N applica progres
Dongg Ltd natural 2-21 the cost gas 1-30 (Notice
ble s
uan Guangd gas of prices, No.:
Co., ong integrat the cost 2013-0
Branch ed of 44)
services integrat release
28
深圳南山热电股份有限公司 2018 年半年度报告全文
and tax. ed d on
services China
and tax. Securiti
es
Journal,
Securiti
es
Times,
Hong
Kong
Comme
rcial
Daily
and
Juchao
Website
Notice
of
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(Notice
No.:
Compo 2014-0
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Co.,
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and tax. services Hong
and tax. Kong
Comme
rcial
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and
Juchao
Website
。
29
深圳南山热电股份有限公司 2018 年半年度报告全文
It was a It was a
framew framew
ork ork
agreem agreem
ent, the ent, the
price of price of Fail to
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Power parties parties conditi
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XV. Social responsibility
1. Major environmental protection
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department
Pollutant
Distribution
Enterprise Main Number of Emission discharge Total
Way of of the Total Excessive
or pollutant discharge concentratio standard approved
discharge discharge discharge emission
subsidiary and features outlet n implemente emissions
outlet
d
Shenzhen Concentrate In plant area
Nanshan emission of Nanshan GB13223-2
Oxynitride 2 <25 mg/m3 149.49 ton 457.5 ton 0
Power Co., from boiler Thermal 011
Ltd. uptake Plant
Shenzhen Concentrate In plant area
New Power emission of Nanshan GB13223-2
Oxynitride 1 <25 mg/m3 55.87 ton 228.75 ton 0
Industrial from boiler Thermal 011
Co., Ltd. uptake Plant
Shen Nan In plant area
Concentrate
Dian of GB13223-2
Oxynitride emission 2 <25 mg/m3 19.8 ton 438.9 ton 0
(Dongguan) Dongguan 011
from boiler
Weimei Gaobu
30
深圳南山热电股份有限公司 2018 年半年度报告全文
Electric uptake Power Plant
Power Co.,
Ltd
Shen Nan
In plant area
Dian Concentrate
of
(Zhongshan emission GB13223-2
Oxynitride 2 Zhongshan <25 mg/m3 42.6 ton 324.50 ton 0
) Electric from boiler 011
Nam Long
Power Co., uptake
Power Plant
Ltd.
(2) Construction and operation of the pollution controlling instruments
All pollution prevention and control facilities are operating normally, and all pollutant discharges are stable and up to standard.
(3) Environmental impact assessment of construction projects and other environmental protection administrative licenses
All the above four legal entities have passed the environmental impact assessment and have been filed in Guangdong Environmental
Protection Department.
(4) Emergency plan for sudden environmental incidents
The emergency plan for sudden environmental incidents has been filed in Guangdong Environmental Protection Department and the
corresponding Municipal Environmental Protection Bureau.
(5) Environmental self-monitoring program
The environmental self-monitoring program has been prepared and reviewed by the environmental protection department; the
information on the monitoring data is disclosed on the website of the environmental protection department on time.
(6) Other environmental information that should be disclosed
Nil
(7) Relevant other information
Nil
2. Fulfill the precise social responsibility for poverty alleviation
The Company has no precision poverty alleviation temporary in the year, and no subsequent program either
XVI. Other major events
√Applicable □ Not applicable
1. T102-0011, T102-0155 land related matters. During the reporting period, the Company closely tracked the situation of the
comprehensive planning of the Qianhai Shekou Free Trade Zone and the work dynamics of the Shenzhen Municipal Government and
other relevant departments. On March 5, 2018, after learned the notice on the Public Participation Publicity About the Social Stability
Risk Analysis of Yueliangwan Avenue Rapid Transformation Project from the public website of “Transport Commission of Shenzhen
Municipality”, the Company immediately conferred with the Company’s special legal counsel, drafted the reply according to the
relevant requirements of the notice, and submitted to the construction unit “Shenzhen Transportation Public Facilities Construction
Center” and the social stability risk assessment agency undertaking the evaluation work “Guizhou Transportation Planning Survey and
Design Academe Co., Ltd.” before the specified deadline, and put forward opinions and suggestions on the significant impacts that the
project construction may have on the Company and its subsidiaries. In addition, considering that the Company’s Statement of Objection
on the “Comprehensive Planning of Qianhai Shekou Free Trade Zone” submitted to the Urban Planning, Land & Resources
31
深圳南山热电股份有限公司 2018 年半年度报告全文
Commission of Shenzhen Municipality on August 10, 2017 has received no reply, in order to re-declare the Company’s standpoint, the
Company submitted the Application for Shennandian Company to Amend the Comprehensive Planning of China (Guangdong) Pilot
Free Trade Zone Shenzhen Qianhai Shekou Zone to the Urban Planning, Land & Resources Commission of Shenzhen Municipality on
April 13, 2018, reaffirmed the impacts that the Comprehensive Planning of China (Guangdong) Pilot Free Trade Zone Shenzhen
Qianhai Shekou Zone (hereinafter referred to as “Planning”) may make on the Company, and proposed to modify the planning contents
involving the Company’s land in the “Planning”. Since then, the Company has continued to maintain contact with relevant government
departments. The Company will continue to actively carry out relevant work with the participation and cooperation of legal counsel,
closely track the situation of the comprehensive planning of the Qianhai Shekou Free Trade Zone, and do its utmost to safeguard the
rights and interests of the Company’s shareholders and employees.
2. “Shenzhen Blue” renovation project. During the reporting period, the Shenzhen Municipal Government formulated the “Shenzhen
Blue” Sustainable Action Plan and clarified that “the whole city’s seven gas-fired power plants will be supervised and urged to
respectively complete the upgrade of low-nitrogen burners or the transformation of flue gas denitrification of more than one gas turbine
set before October 31, 2018. From November 1st, 2018, the gas turbine sets that have not completed low-nitrogen burner upgrade or flue
gas denitrification transformation shall not be dispatched to generate electricity.” (For details, please refer to the Notice About Received
the Notification of Shenzhen Municipal People’s Government on Printing and Issuing the 2018 “Shenzhen Blue” (Notice No.:
2018-015).At present, the Company has started the preliminary work of related technical transformation, and strives to complete the
upgrade of at least one set of low-nitrogen burners within the prescribed time limit according to the government requirements.
3. Refunds of the “Project Technical Reform Benefit Fund”. During the reporting period, the Company continued to carry out the
relevant collection work for the refunds of the “Project Technical Reform Benefit Fund”, and contacted and communicated with related
parties, but the work has not yet made substantial progress.
In addition to the above matters, the Company’s #7, #9 unit asset transfer work, and the Company’s participation in the Xingjiang Aid
Project of Guangdong Province, and the Company’s plan to apply to National Association of Financial Market Institutional Investors for
the registration and issuance of medium term notes with total amount not more than 500 million Yuan (including 500 million Yuan) and
for the private placement of corporate bonds not exceeding 2 billion Yuan (including 2 billion Yuan) did not make progress or change
during the reporting period.
XVII. Major event of the subsidiaries
□Applicable √Not applicable
32
深圳南山热电股份有限公司 2018 年半年度报告全文
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
New Capitalization
Bonus Subtot Proportio
Amount Proportion shares of public Others Amount
shares al n
issued reserve
I. Restricted shares 14,138 0.0023% 14,138 0.0023%
3. Other domestic shares 14,138 0.0023% 14,138 0.0023%
Domestic nature
14,138 0.0023% 14,138 0.0023%
person shares
II. Unrestricted shares 602,748,458 99.9977% 602,748,458 99.9977%
1. RMB Ordinary shares 338,894,012 56.2235% 338,894,012 56.2235%
2. Domestically listed
263,854,446 43.7742% 263,854,446 43.7742%
foreign shares
III. Total shares 602,762,596 100.00% 602,762,596 100.00%
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 or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
□ Applicable √ Not applicable
33
深圳南山热电股份有限公司 2018 年半年度报告全文
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Number of shares and shares held
In Share
Total preference shareholders with
Total common shareholders at voting rights recovered at end of
30,739 0
period-end reporting period (if applicable)
(note8)
Particulars about common shares held above 5% by shareholders or top ten common shareholders
Amount of Number of share
Changes Amount of
Proportion Number of restricted pledged/frozen
in un-restricted
Shareholders Nature of shareholder of shares common shares common
reporting common State of Amoun
held held at period-end shares
period shares held share t
held
HONG KONG
NAM HOI
Overseas corporate 15.28% 92,123,248 0 0 92,123,248
(INTERNATIO
NAL) LTD
Shenzhen
Guangju
State-owned corporate 12.22% 73,666,824 0 0 73,666,824
Industrial Co.,
Ltd.
SHENZHEN
ENERGY
State-owned corporate 10.80% 65,106,130 0 0 65,106,130
(GROUP) CO.,
LTD.
BOCI
SECURITIES Overseas corporate 1.44% 8,690,627 0 0 8,690,627
LIMITED
Domestic nature
Zeng Ying 1.14% 6,878,096 0 0 6,878,096
person
China
Merchants
State-owned corporate 1.13% 6,823,369 0 0 6,823,369
Securities (HK)
Co., Limited
Domestic nature
Liu Fang 0.93% 5,604,273 0 0 5,604,273
person
34
深圳南山热电股份有限公司 2018 年半年度报告全文
Meiyi
Domestic
Investment
non-state-owned 0.77% 4,615,800 0 0 4,615,800
Property Co.,
corporate
Ltd.
Domestic nature
Li Baoqin 0.66% 3,989,100 0 0 3,989,100
person
Domestic nature
Zhang Heping 0.64% 3,840,300 0 0 3,840,300
person
1. Shenzhen Energy (Group) Co., Ltd. holds indirectly 100% equities of Hong Kong Nam
Explanation on associated relationship
Hoi (International) Limited; 2. Among other social public shareholders, the Company did
among the aforesaid shareholders
not know whether there were associated relationships or belonging to consistent actors.
Particular about top ten 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
RMB ordinary
Shenzhen Guangju Industrial Co., Ltd. 73,666,824 73,666,824
shares
SHENZHEN ENERGY (GROUP) CO., RMB ordinary
65,106,130 65,106,130
LTD. shares
Domestically
BOCI SECURITIES LIMITED 8,690,627 listed foreign 8,690,627
shares
Domestically
Zeng Ying 6,878,096 listed foreign 6,878,096
shares
Domestically
China Merchants Securities (HK) Co.,
6,823,369 listed foreign 6,823,369
Limited
shares
RMB ordinary
2,659,373
shares
Liu Fang 5,604,273 Domestically
listed foreign 2,944,900
shares
RMB ordinary
Meiyi Investment Property Co., Ltd. 4,615,800 4,615,800
shares
RMB ordinary
Li Baoqin 3,989,100 949,800
shares
35
深圳南山热电股份有限公司 2018 年半年度报告全文
Domestically
listed foreign 3,039,300
shares
RMB ordinary
2,600,000
shares
Zhang Heping 3,840,300 Domestically
listed foreign 1,240,300
shares
Expiation on associated relationship or
1. 100% equity of HONG KONG NAM HOI (INTERNATIONAL) LIMITED was held
consistent actors within the top 10
by SHENZHEN ENERGY (GROUP) CO., LTD
un-restrict shareholders and between top
2. Among other social public shareholders, the Company did not know whether there were
10 un-restrict shareholders and top 10
associated relationships or belonging to consistent actors.
shareholders
Explanation on top 10 shareholders Among the top ten shareholders, Ms. Liu Fang holds 2,659,373 shares through credit
involving margin business transaction guarantee securities account
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.
IV. Changes of controlling shareholders or actual controller
Change of controlling shareholders in reporting period
□ Applicable √ Not applicable
Controller of the Company has no changes in the reporting period
Change of actual controller in reporting period
□ Applicable √ Not applicable
Actual controller of the Company has no changes in the reporting period
36
深圳南山热电股份有限公司 2018 年半年度报告全文
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the reporting.
37
深圳南山热电股份有限公司 2018 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
Shares held by directors, supervisors and senior executives have no changes in reporting period, found more details in Annual Report
2017.
II. Resignation and dismissal of directors, supervisors and senior executives
□ Applicable √ Not applicable
Directors, supervisors and senior executives have no changes in the period, found more in Annual Report 2017
Section IX Corporation Bonds
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when
annual report approved for released or fail to cash in full on due
Nil
Section X. Financial Report
I. Auditing report
Whether the semi-annual report have been audited or not
□ Yes √ No
The financial report of the semi-annual report has not been audited (attached)
38
深圳南山热电股份有限公司 2018 年半年度报告全文
Section XI. Documents Available for Reference
I. Original semi-annual Report of 2018carried with the personnel signature of Legal Representative;
II. Accounting Statements carried with the signature and seals of the person in charge of the Company (Legal Representative), person
in charge of accounting (General Manager and CFO) and person in charge of accounting department (chief accountants);
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: Shenzhen Stock Exchange, Secretariat of the Board of Director of the Company.
Shenzhen Nanshan Power Co., Ltd.
Legal Representative: Li Xinwei
11 August 2018
39
深圳南山热电股份有限公司 2018 年半年度报告全文
Shenzhen Nanshan Power Co., Ltd.
Financial Statement
Semi-Annual Report (ended as 30 June 2018)
40
深圳南山热电股份有限公司 2018 年半年度报告全文
Consolidated Balance Sheet
In RMB/CNY
Liabilities and owners’
Asset 2018-6-30 2017-12-31 2018-6-30 2017-12-31
equity
Current assets: Current liabilities:
Monetary funds 774,980,279.97 438,316,169.81 Short-term loans 911,500,000.00 515,850,000.00
Notes receivable 100,000.00 6,702,500.00 Notes payable - 51,439,580.56
Accounts
receivable
277,917,141.93 113,349,775.76 Accounts payable 54,333,872.94 15,094,912.60
Accounts paid in Accounts received in
advance
58,522,566.11 119,069,891.55 advance
- -
Interest
receivable
- - Wage payable 46,502,561.49 48,337,588.25
Dividend
receivable
- - Taxes payable 16,782,515.76 15,437,758.76
Other receivables 45,683,216.71 38,771,888.74 Interest payable 3,403,850.17 3,006,993.33
Inventories 69,716,098.15 77,834,903.89 Dividend payable - -
Long-term debt
Other accounts
investment due within - - payable
86,175,436.00 83,214,183.57
1 year
Other current Long-term liabilities
assets
401,276,677.02 452,184,523.24 due within 1 year
- 32,400,000.00
Total current Total current
assets
1,628,195,979.89 1,246,229,652.99 liabilities
1,118,698,236.36 764,781,017.07
Non-current assets: Non-current liabilities:
Financial assets
available for sale
60,615,000.00 60,615,000.00 Long-term loans 25,940,000.00 25,940,000.00
Long-term
account receivable
- - Accrual liabilities 26,766,590.38 26,788,590.38
Long-term equity
investment
17,177,769.09 18,254,673.40 Deferred income 39,925,363.48 41,948,231.12
Investment Other non-current
property
2,704,371.51 2,802,440.31 liabilities
- -
Total non-current
Fixed assets 1,414,281,661.43 1,420,620,565.05 liabilities
92,631,953.86 94,676,821.50
Construction in
progress
68,499,522.92 50,958,741.92 Total liabilities 1,211,330,190.22 859,457,838.57
Disposal of fixed
1,314.60 - Owners’ equity:
asset
Intangible assets 47,226,669.23 48,470,500.60 Share capital 602,762,596.00 602,762,596.00
Long-term
Capital public
expenses to be - - reserve
362,770,922.10 362,770,922.10
apportioned
Deferred income Other comprehensive
tax asset
2,922,036.65 2,922,036.65 income
- -
Other Surplus public
non-current asset
22,882,181.78 32,930,781.78 reserve
332,908,397.60 332,908,397.60
Total non-current
asset
1,636,310,527.21 1,637,574,739.71 Retained profit 690,188,264.91 660,176,169.69
Total owner’s equity
1,988,630,180.61 1,958,618,085.39
attributable to parent
41
深圳南山热电股份有限公司 2018 年半年度报告全文
Company
Minority interests 64,546,136.27 65,728,468.74
Total shareholders’
equity
2,053,176,316.88 2,024,346,554.13
Total liabilities and
Total assets 3,264,506,507.10 2,883,804,392.70 shareholders’ equity
3,264,506,507.10 2,883,804,392.70
Balance Sheet of the Company
In RMB/CNY
Liabilities and owners’
Asset 2018-6-30 2017-12-31 2018-6-30 2017-12-31
equity
Current assets: Current liabilities:
Monetary funds 513,661,278.18 159,883,551.05 Short-term loans 760,000,000.00 50,000,000.00
Notes receivable - - Notes payable - 38,863,779.64
Accounts
receivable
136,717,345.45 17,599,743.80 Accounts payable 33,651,889.87 1,467,087.08
Accounts paid in Accounts received in
advance
14,859,188.54 72,042,056.16 advance
- -
Interest receivable - - Wage payable 25,480,387.21 23,669,295.53
Dividend
receivable
- - Taxes payable 7,639,768.86 5,703,576.67
Other receivables 1,244,150,689.68 913,646,990.47 Interest payable 1,116,698.61 175,740.00
Inventories 59,226,898.69 68,187,593.73 Dividend payable - -
Long-term debt
investment due within 1 - - Other accounts payable 202,216,771.64 176,793,775.07
year
Other current Non current liabilities
assets
370,795,974.30 406,616,846.60 due within one year
- -
Total current
assets
2,339,411,374.84 1,637,976,781.81 Total current liabilities 1,030,105,516.19 296,673,253.99
Non-current assets: Non-current liabilities:
Financial assets
available for sale
60,615,000.00 60,615,000.00 Long-term loans - -
Long-term equity
investment
691,982,849.76 691,982,849.76 Deferred income 22,340,902.29 23,665,762.95
Investment Other non-current
property
- - liabilities
- -
Total non-current
Fixed assets 269,752,767.00 220,519,962.58 liabilities
22,340,902.29 23,665,762.95
Construction in
progress
774,060.84 755,227.83 Total liabilities 1,052,446,418.48 320,339,016.94
Disposal of fixed
- - Owners’ equity:
asset
Intangible assets 2,120,473.64 2,726,256.15 Share capital 602,762,596.00 602,762,596.00
Long-term
expenses to be - - Capital public reserve 289,963,039.70 289,963,039.70
apportioned
42
深圳南山热电股份有限公司 2018 年半年度报告全文
Deferred income Other comprehensive
tax asset
- - income
- -
Other non-current
asset
- 1,516,600.00 Surplus public reserve 332,908,397.60 332,908,397.60
Total non-current
asset
1,025,245,151.24 978,115,896.32 Retained profit 1,086,576,074.30 1,070,119,627.89
Total shareholders’
equity
2,312,210,107.60 2,295,753,661.19
Total liabilities and
Total assets 3,364,656,526.08 2,616,092,678.13 shareholders’ equity
3,364,656,526.08 2,616,092,678.13
Consolidated Profit Statement
In RMB/CNY
Item Jan.-Jun. 2018 Jan.-Jun.2017
I. Total operation income 1,079,760,214.80 872,962,697.33
Including: operation income 1,079,760,214.80 872,962,697.33
II. Total operation cost 1,045,043,229.77 905,059,018.04
Including: operation cost 969,695,053.03 827,761,559.33
Operation tax and surcharge 4,722,002.73 3,494,481.47
Sales expense 1,650,238.04 1,413,079.30
Management expense 46,681,650.04 41,191,218.46
Financial expense 22,294,285.93 31,679,390.45
Loss of assets impairment - -480,710.97
Add: Changing income of fair value (Loss is listed with “-”) - -
Investment income (Loss is listed with “-”) -1,076,904.31 -1,019,420.00
Including: Investment income on affiliated Company and joint
venture
- -
Other income 4,136,805.38 3,489,863.10
III. Operating profit (Loss is listed with “-”) 37,776,886.10 -29,625,877.61
Add: Non-operating income 4,775.00 5,796.00
Incl: Gains of non-current asset scrap and damage - -
Less: Non-operating expense 859,018.73 172,009.57
Incl: Loss of non-current asset scrap and damage 849,018.73 160,729.35
IV. Total Profit (Loss is listed with “-”) 36,922,642.37 -29,792,091.18
Less: Income tax expense 8,092,879.62 920,495.87
V. Net profit (Net loss is listed with “-”) 28,829,762.75 -30,712,587.05
Net profit attributable to owner’s of parent Company 30,012,095.22 -22,629,201.38
43
深圳南山热电股份有限公司 2018 年半年度报告全文
Minority shareholders’ gains and losses -1,182,332.47 -8,083,385.67
VI. Net after-tax of other comprehensive income - -
VII. Total comprehensive income 28,829,762.75 -30,712,587.05
Total comprehensive income attributable to owners of parent
30,012,095.22 -22,629,201.38
Company
Total comprehensive income attributable to minority
-1,182,332.47 -8,083,385.67
shareholders
VIII. Earnings per share: - -
(i) Basic earnings per share 0.05 -0.04
(ii) Diluted earnings per share 0.05 -0.04
Profit Statement of the Company
In RMB/CNY
Item Jan.-Jun.2018 Jan.-Jun.2017
I. Operation income 406,846,441.84 328,400,559.49
Less: Operation cost 373,230,061.12 353,421,168.22
Tax and surcharge 854,057.24 698,660.66
Sales expense - -
Management expense 21,014,208.00 19,400,916.35
Financial expense -9,527,151.94 -10,302,383.72
Loss of assets impairment - -480,710.97
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
- -
Other income 1,424,860.66 1,520,540.66
II. Operating profit (Loss is listed with “-”) 22,700,128.08 -32,816,550.39
Add: Non-operating income 1,775.00 1,000.00
Including: Disposal gains of non-current asset - -
Less: Non-operating expense 759,974.53 159,602.00
Incl: Loss of non-current asset scrap and damage 759,974.53 159,602.00
III. Total Profit (Loss is listed with “-”) 21,941,928.55 -32,975,152.39
Less: Income tax expense 5,485,482.14
IV. Net profit (Net loss is listed with “-”) 16,456,446.41 -32,975,152.39
V. Other comprehensive income
44
深圳南山热电股份有限公司 2018 年半年度报告全文
VI. Total comprehensive income 16,456,446.41 -32,975,152.39
Consolidated Cash Flow Statement
In RMB/CNY
Item Jan.-Jun.2018 Jan.-Jun.2017
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 1,094,708,553.42 905,687,628.86
Write-back of tax received 1,532,247.09 1,458,413.85
Other cash received concerning operating activities 6,010,380.05 376,088,275.79
Subtotal of cash inflow arising from operating activities 1,102,251,180.56 1,283,234,318.50
Cash paid for purchasing commodities and receiving labor service 900,058,280.99 1,015,783,468.71
Cash paid to/for staff and workers 72,787,871.66 63,335,884.67
Taxes paid 50,929,658.40 247,951,334.11
Other cash paid concerning operating activities 25,884,735.23 21,612,486.28
Subtotal of cash outflow arising from operating activities 1,049,660,546.28 1,348,683,173.77
Net cash flows arising from operating activities 52,590,634.28 -65,448,855.27
II. Cash flows arising from investing activities:
Net cash received from disposal of fixed, intangible and other long-term
assets
262,500.00 -
Other cash with investment concerned from disposal subsidiary and other
operational unit
- -
Other cash received concerning investing activities - -
Subtotal of cash inflow from investing activities 262,500.00 -
Cash paid for purchasing fixed, intangible and other long-term assets 55,750,360.52 39,051,315.46
Cash paid for investment - -
Other cash paid for acquiring subsidiary and other operation unit - -
Other cash paid concerning investing activities - -
Subtotal of cash outflow from investing activities 55,750,360.52 39,051,315.46
Net cash flows arising from investing activities -55,487,860.52 -39,051,315.46
45
深圳南山热电股份有限公司 2018 年半年度报告全文
III. Cash flows arising from financing activities
Cash received by absorbing investment - -
Cash received from loans 910,000,000.00 229,440,000.00
Other cash received concerning financing activities 15,460,000.00 11,309,958.60
Subtotal of cash inflow from financing activities 925,460,000.00 240,749,958.60
Cash paid for settling debts 546,750,000.00 1,171,790,000.00
Cash paid for dividend and profit distributing or interest paying 23,763,614.59 33,385,928.70
Other cash paid concerning financing activities - -
Subtotal of cash outflow from financing activities 570,513,614.59 1,205,175,928.70
Net cash flows arising from financing activities 354,946,385.41 -964,425,970.10
IV. Influence on cash due to fluctuation in exchange rate 74,950.99 -156,704.62
V. Net increase of cash and cash equivalents 352,124,110.16 -1,069,082,845.45
Add: Balance of cash and cash equivalents at the period-begin 411,613,377.07 1,389,482,327.86
VI. Balance of cash and cash equivalents at the period-end 763,737,487.23 320,399,482.41
Cash Flow Statement of the Company
In RMB/CNY
Item Jan.-Jun.2018 Jan.-Jun.2017
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor services 510,374,571.27 448,272,760.70
Write-back of tax received - -
Other cash received concerning operating activities 311,662,404.45 450,213,916.09
Subtotal of cash inflow arising from operating activities 822,036,975.72 898,486,676.79
Cash paid for purchasing commodities and receiving labor service 340,094,480.46 518,637,387.55
Cash paid to/for staff and workers 44,228,041.55 33,867,598.79
Taxes paid 10,150,486.72 226,823,834.53
Other cash paid concerning operating activities 726,578,528.72 348,786,679.61
Subtotal of cash outflow arising from operating activities 1,121,051,537.45 1,128,115,500.48
Net cash flows arising from operating activities -299,014,561.73 -229,628,823.69
II. Cash flows arising from investing activities:
Net cash received from disposal of fixed, intangible and other
long-term assets
262,500.00 -
Other cash received from disposing subsidiary and other operation
unit
-
Other cash received concerning investing activities - -
Subtotal of cash inflow from investing activities 262,500.00 -
Cash paid for purchasing fixed, intangible and other long-term
assets
47,402,174.44 37,751.00
Cash paid for investment - -
Net cash received from subsidiaries and other units obtained - -
46
深圳南山热电股份有限公司 2018 年半年度报告全文
Other cash paid concerning investing activities - -
Subtotal of cash outflow from investing activities 47,402,174.44 37,751.00
Net cash flows arising from investing activities -47,139,674.44 -37,751.00
III. Cash flows arising from financing activities
Cash received from absorbing investment - -
Cash received from loans 740,000,000.00 -
Other cash received concerning financing activities 11,660,000.00 -
Subtotal of cash inflow from financing activities 751,660,000.00 -
Cash paid for settling debts 30,000,000.00 680,500,000.00
Cash paid for dividend and profit distributing or interest paying 10,068,299.31 14,136,466.93
Other cash paid concerning financing activities - -
Subtotal of cash outflow from financing activities 40,068,299.31 694,636,466.93
Net cash flows arising from financing activities 711,591,700.69 -694,636,466.93
IV. Influence on cash due to fluctuation in exchange rate 262.61 -652.36
V. Net increase of cash and cash equivalents 365,437,727.13 -924,303,693.98
Add: Balance of cash and cash equivalents at the period-begin 148,223,551.05 1,119,323,850.36
VI. Balance of cash and cash equivalents at the period-end 513,661,278.18 195,020,156.38
47
深圳南山热电股份有限公司 2018 年半年度报告全文
Consolidated Statement on Changes of Owners’ Equity
In RMB/CNY
Jan.-Jun. 2018 2017
Item Equity attributable to Shareholder of parent Company Equity attributable to Shareholder of parent Company
Total owners’ Minority’s Total owners’
Minority’s equity
equity equity equity
Share capital Capital reserve Surplus reserves Retained profit Share capital Capital reserve Surplus reserves Retained profit
I. Balance at the end of
602,762,596.00 362,770,922.10 332,908,397.60 660,176,169.69 65,728,468.74 2,024,346,554.13 602,762,596.00 362,770,922.10 332,908,397.60 644,271,987.22 81,255,574.45 2,023,969,477.37
last year
Add: Changes of
- - - - - - - - - - - -
accounting policy
II. Balance at the
602,762,596.00 362,770,922.10 332,908,397.60 660,176,169.69 65,728,468.74 2,024,346,554.13 602,762,596.00 362,770,922.10 332,908,397.60 644,271,987.22 81,255,574.45 2,023,969,477.37
beginning of this year
III. Increase/ Decrease
- - - 30,012,095.22 -1,182,332.47 28,829,762.75 - - - 15,904,182.47 -15,527,105.71 377,076.76
in this year
(i) Total
- - - 30,012,095.22 -1,182,332.47 28,829,762.75 - - - 15,904,182.47 -15,527,105.71 377,076.76
comprehensive income
(ii) Owners’ devoted
- - - - - - - - - - - -
and decreased capital
1. Owners’ devoted
- - - - - - - - - - - -
capital
2. Other - - - - - - - - - - - -
(III) Profit distribution - - - - - - - - - - - -
1. Withdrawal of
- - - - - - - - - - - -
surplus reserves
2. Distribution for
owners (or - - - - - - - - - -
shareholders)
3. Other - - - - - - - - - - - -
(IV) Carrying forward
- - - - - - - - - - - -
internal owners’ equity
(V) Other - - - - - - - - - - - -
IV. Balance at the end
602,762,596.00 362,770,922.10 332,908,397.60 690,188,264.91 64,546,136.27 2,053,176,316.88 602,762,596.00 362,770,922.10 332,908,397.60 660,176,169.69 65,728,468.74 2,024,346,554.13
of the Period
48
深圳南山热电股份有限公司 2018 年半年度报告全文
Statement on Changes of Owners’ Equity of the Company
In RMB/CNY
Jan.- Jun.2018 2017
Item
Share capital Capital reserve Surplus reserves Retained profit Total owners’ equity Share capital Capital reserve Surplus reserves Retained profit Total owners’ equity
I. Balance at the end of last year 602,762,596.00 289,963,039.70 332,908,397.60 1,070,119,627.89 2,295,753,661.19 602,762,596.00 289,963,039.70 332,908,397.60 1,059,120,630.04 2,284,754,663.34
Add: Changes of accounting policy - - - - - - - - - -
II. Balance at the beginning of this
602,762,596.00 289,963,039.70 332,908,397.60 1,070,119,627.89 2,295,753,661.19 602,762,596.00 289,963,039.70 332,908,397.60 1,059,120,630.04 2,284,754,663.34
year
III. Increase/ Decrease in this year - - - 16,456,446.41 16,456,446.41 - - - 10,998,997.85 10,998,997.85
(i) Total comprehensive income - - - 16,456,446.41 16,456,446.41 - - - 10,998,997.85 10,998,997.85
(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
49
深圳南山热电股份有限公司 2018 年半年度报告全文
(V) Other - - - - - - - - - -
IV. Balance at the end of the year 602,762,596.00 289,963,039.70 332,908,397.60 1,086,576,074.30 2,312,210,107.60 602,762,596.00 289,963,039.70 332,908,397.60 1,070,119,627.89 2,295,753,661.19
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深圳南山热电股份有限公司 2018 年半年度报告全文
Shenzhen Nanshan Power Co., Ltd.
Notes to financial statement semi-annual 2018
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 on 16/F, 17/F, Han Tang Building, OCT, Nanshan District,
Shenzhen City, Guangdong Province, P.R.C.
The financial statement was approved and decided by the Broad of the Company on 9 August
2018.
Totally 9 subsidiaries included in consolidate scope for the half year of 2018.
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
1. Basis of preparation
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
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ASBEs. Except for certain financial instruments, 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 2018, and the Company together with its operation results, and cash flow
for the semi-annual of 2018. 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.
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, real estate 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 24
Description of revenue items under section IV. For explanation on material accounting judgment
and estimate issued by the management, please refer to Note 30 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.
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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
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
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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
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the initial investment cost of this investment. 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.
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
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of the consolidation period to the consolidation date are also presented in the consolidated
income statement and the consolidated cash flow statements. The comparative figures presented
in the consolidated financial statements are also adjusted accordingly.
The financial statements of the subsidiaries are adjusted in accordance with the accounting
policies and accounting period of the Company in the preparation of the consolidated financial
statements, where the accounting policies and the accounting periods are inconsistent between
the Company and the subsidiaries. For subsidiaries acquired from business combination not
under common control, the financial statements of the subsidiaries will be adjusted according to
the fair value of the identifiable net assets at the acquisition date.
All intra-group significant balances, transactions and unrealized profit are eliminated in the
consolidated financial statements.
As for the subsidiary’s shareholders’ equity and the parts that does not owned the Group in
current net gains/losses, listed out independently as minority shareholders’ equity and minority
shareholders gains/losses in item of shareholders’ equity and net profit contained in consolidated
financial statement separately. The amount attributable to minority shareholders’ equity of
current net loss/gains of subsidiaries is listed in the net profit item of consolidated profit as
minority shareholders’ equity. When the share of losses attributable to the minor shareholders
has exceeded their shares in the owners’ equity at the beginning of term attributable to minority
shareholders in the subsidiary, the balance shall offset the minor shareholders’ equity.
For control rights loss in original subsidiary for partial equity investment disposal or other
reasons, the remained equity should re-measured based on the fair value at date of control losses.
The difference between the net assets of original subsidiary share by proportion held that
sustainable calculated since purchased date and sum of consideration obtained by equity disposal
and fair value of remain equity, reckoned into the current investment income of control rights
loss. 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
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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: ① these transactions are entered into at
the same time or after considering their impacts on each other; ② these transactions as a whole
can reach complete business results; ③ the occurrence of a transaction depends on at least the
occurrence of an other transaction; ④ 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 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
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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 asset 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 ①exchange difference arising from foreign currency special borrowings relating
to purchasing assets satisfying capitalization conditions is stated under capitalization principle of
borrowing expenses; ②exchange 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 ③exchange 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 from disposal for the current
period when the overseas operation is disposed of.
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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
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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 the 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.
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
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conditions is met: A. the financial assets is acquired or incurred principally for the purpose of
selling it in the near term; B. the financial assets is part of a portfolio of identified financial
instruments that are managed together and for which there is objective evidence of a recent
pattern of short-term profit-taking; or C. the financial assets is a derivative, excluding the
derivatives designated as effective hedging instruments, the derivatives classified as financial
guarantee contract, and the derivatives linked to an equity instrument investment which has no
quoted price in an active market nor a reliably measured fair value and are required to be settled
through that equity instrument.
A financial asset may be designated as at fair value through profit or loss upon initial recognition
only when one of the following conditions is satisfied: A. Such designation eliminates or
significantly reduces a measurement or recognition inconsistency that would otherwise result
from measuring assets or recognizing the gains or losses on them on different bases; or B. The
financial asset forms part of a group of financial assets or a group of financial assets and
financial liabilities, which is managed and its performance is evaluated on a fair value basis, in
accordance with the Group’s documented risk management or investment strategy, and
information about the grouping is reported to key management personnel on that basis.
Financial assets carried at fair value through profit or loss for the current period is subsequently
measured at fair value. The gain or loss arising from changes in fair value and dividends and
interest income related to such financial assets are charged to profit or loss for the current period.
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.
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③ Loans and receivables
They are non-derivative financial assets with fixed or determinable payments that are not quoted
in an active market. Financial assets, including bills receivable, accounts receivable, the Group
classifies interest receivable, dividends receivable and other receivables as loans and receivables.
Loans and receivables are measured subsequently at the amortized cost by using the effective
interest rate method. Gains or losses incurred at the time of derecognition, impairment or
amortization are charged to profit or loss for the current period.
④ Available-for-sale financial assets
They include non-derivative financial assets that are designated in this category on initial
recognition, and the financial assets other than the financial assets at fair value through profit
and loss, loans and receivables and held-to-maturity investments.
The closing cost of available-for-sale debt instruments are determined based on amortized cost
method, which means the amount of initial recognition less the amount of principle already
repaid, add or less the accumulated amortized amount arising from the difference between the
amount initially recognized and the amount due on maturity using effective interest rate method,
and less the amount of impairment losses recognized. The closing cost of available-for-sale
equity instruments is equal to its initial acquisition cost.
Available-for-sale financial assets are subsequently measured at fair value. The gain or loss on
change in fair value are recognized as other comprehensive income and charged to capital
reserves, except for impairment loss and exchange differences arising from foreign monetary
financial assets and amortized cost which are accounted for through profit or loss for the current
period. The financial assets will be transferred out of the financial assets on derecognition and
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
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amounts; for financial assets without major amounts, the Group performs impairment test
separately or inclusively in a group of financial assets with similar characteristics of risks. Those
financial assets (individual financial assets with or without major amounts) tested separately
with no impairment found shall be tested again along with the group of financial assets with
similar risk characteristics. Financial assets confirmed for impairment individually shall not be
tested along with the group of financial assets with similar risk characteristics.
① Impairment of held-to-maturity investments and loans and receivables
The carrying amount of financial assets measured as costs or amortized costs are subsequently
reduced to the present value discounted from its projected future cash flow. The reduced amount
is recognized as impairment loss and recorded as profit or loss for the period. After recognition
of the impairment loss from financial assets, if there is objective evidence showing recovery in
value of such financial assets impaired and which is related to any event occurring after such
recognition, the impairment loss originally recognized shall be reversed to the extent that the
carrying value of the financial assets upon reversal will not exceed the amortized cost as at the
reversal date assuming there is no provision for impairment.
② Impairment of available-for-sale financial assets
In the event that decline in fair value of the available-for-sale equity instrument is regarded as
“severe decline” or “non-temporary decline” on the basis of comprehensive related factors, it
indicates that there is impairment loss of the available-for-sale equity instrument.
When the available-for-sale financial assets impair, the accumulated loss originally included in
the capital reserve arising from the decrease in fair value was transferred out from the capital
reserve and included in the profit or loss for the period. The accumulated loss that transferred out
from the capital reserve is the balance of the acquired initial cost of asset, after deduction of the
principal recovered, amortized amounts, current fair value and the impairment loss originally
included in the profit or loss.
After recognition of the impairment loss, if there is objective evidence showing recovery in
value of such financial assets impaired and which is related to any event occurring after such
recognition in subsequent periods, the impairment loss originally recognized shall be reversed.
The impairment loss reversal of the available-for-sale equity instrument will be recognized as
other consolidated income, and the impairment loss reversal of the available-for-sale debt
instrument will be included in the profit or loss for the period.
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.
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(4) Recognition basis and measurement method for transfer of financial assets
As for the financial assets up to the following conditions, the recognition termination is available:
①Termination of the contract right to take the cash flow of the financial assets; ② transferred to
the transferring-in part nearly all risk and compensation; ③ all risk and compensation neither
transferred nor retained, and with the give-up of the control over the financial assets.
As for financial assets of almost all risk and compensation neither transferred nor retained, and
without the give-up of the control over the financial assets, it was recognized according to the
extension of the continual entry into the transferred financial assets and relevant liabilities are
correspondingly recognized. The continual entry into the transferred financial assets is risk level
which the enterprise faces up to due to the assets changes.
As for the whole transfer of the financial assets up to the recognition termination conditions, the
book value of the transferred assets, together with the difference between the consideration value
and the accumulative total of the fair value change of the other consolidated income, is reckoned
into the current gain/loss.
As for the partial transfer of the financial assets up to the recognition termination conditions, the
book value of the transferred assets is diluted on the relative fair value between the terminated
part and the un-terminated part; and reckoned into the current loss/gain is the difference between
the sum of the consideration value and the accumulative sum of the valuation change ought to be
diluted into the recognition termination part but into the other consolidated income, and the
above diluted book value, is reckoned into the current loss/gain.
For financial assets that are transferred with recourse or endorsement, the Group needs to
determine whether the risk and rewards of ownership of the financial asset have been
substantially transferred. If the risk and rewards of ownership of the financial asset have been
substantially transferred, the financial assets shall be derecognized. If the risk and rewards of
ownership of the financial asset have been retained, the financial assets shall not be derecognized.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of
the financial asset, the Group shall assess whether the control over the financial asset is retained,
and the financial assets shall be accounted for according to the above paragraphs.
(5) Categorizing and measuring of financial liabilities
At initial recognition, financial liabilities are classified into financial liabilities measured by fair
value with changes counted into current gains/losses and other financial liabilities. Financial
liabilities are initially recognized at fair value. For financial liabilities classified as fair value
through profit or loss, relevant transaction costs are directly recognized in profit or loss for the
period. For financial liabilities classified as other categories, relevant transaction costs are
included in the amount initially recognized.
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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
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contract is entered into and are subsequently measured at fair value. Any gains or losses arising
from changes in fair value of derivatives are taken directly to profit or loss for the period, except
for derivative instruments that are designated as hedging instruments and which are highly
effective in hedging, gains or losses arising from changes in their fair value are taken to the
profit or loss for the period in accordance with the hedge accounting requirement based on the
nature of hedging relationships.
For combined instruments contain embedded derivatives which are not designated as financial
assets or financial liabilities at fair value through profit or loss, and the embedded derivative and
the main contract does not have a material relation in terms of risk and economic attributes, and
when an individual instrument which is the same as the 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
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is likely to face bankruptcy or other financing restructuring; ④other objective evidence showing
account receivables are impaired.
(2) Provision for bad debt reserves
① Recognition criteria and accrual method on accounts with major amount and withdrawal bad
debt provision independently
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
② Determination 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.
③ Account 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
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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, 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. Non-current assets and disposal groups held for sale
If the Group takes back its book value mainly by selling (including the non-monetary assets
exchange with commercial substance, the same as below) rather than noncontiguous use of a
non-current asset or disposal group, it shall be divided into the held-for-sale category. The
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specific criteria are to meet the following conditions: a certain non-current asset or disposal
group can be sold immediately under the current conditions based on the practice of selling such
assets or disposal groups in similar transactions; the Company has made resolutions on the sale
plan and has obtained decided purchase commitments; the sale is expected to be completed
within one year. Thereinto, the disposal group refers to a set of assets that are disposed along
with all the others as a whole by sale or other methods in a transaction and the liabilities that are
directly related to those assets transferred in the transaction. The group of assets or asset groups
to which the disposal group belongs share the goodwill achieved in the business combination in
accordance with the Accounting Standards for Business Enterprises No. 8 - Impairment of Assets,
the disposal group should include the goodwill assigned to the disposal group.
When the initial measurement or the remeasurement at the balance sheet date of the Group is
divided into the non-current asset and disposal group held for sale, if the book value is higher
than the net amount after subtracting the selling fees from the fair value, write down the book
value to the net amount after subtracting the selling fees from the fair value, the write-down
amount is recognized as asset impairment losses and is included in the current profits and losses,
meanwhile making provisions for impairment of assets held for sale. For the disposal group, the
recognized assets impairment losses firstly offset the book value of goodwill in the disposal
group, then offset the book value of various non-current assets specified by the measurement
applicable for Accounting Standards for Business Enterprises No. 42 - Non-current Assets,
Disposal Group, and Discontinued Operation Held for Sale (Hereinafter referred to as the
Guidelines Held for Sale) in the disposal group. If the net amount after subtracting the selling
fees from the fair value of the disposal group at the subsequent balance sheet date has an
increase, the amount of the previous write-down should be restored and transferred back in the
amount of assets impairment loss recognized by non-current assets and applicable for
held-for-sale standards after being classified as the held-for-sale, the transferred amount should
be included in the current profits and losses, and increase its book value in proportion according
to the proportion of book value of various non-current assets applicable for the measurement and
specification of held-for-sale standards in the disposal group except for the goodwill; the book
value of which the goodwill has been offset and the assets impairment losses confirmed before
the non-current assets applicable for the measurement and specification of held-for-sale
standards being classified as available-for-sale assets cannot be transferred back.
The non-current assets held for sale or the non-current assets in the disposal group shall not be
accrued for depreciation or amortization, continue to confirm the indebted interest and other
expenses in the disposal group held for sale.
When the non-current assets or disposal groups no longer meet the requirements of held-for-sale
categories, the Company shall not continue to classify them as the held-for-sale categories or
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remove the non-current assets from the held-for-sale disposal group, and measure according to
the lower one of the following: (1) For the book value before being classified as held-for-sale
category, the amount of the depreciation, amortization or impairment that should be confirmed
when not being classified as held-for-sale category according to the assumptions after being
adjusted; (2) Recoverable amount.
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 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
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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 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
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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
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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 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.
③ Acquisition 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.
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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 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 and
measurement standard of financial instruments before the Group obtained control over the
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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 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
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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 considering the
expected costs for disposal.
(2) Depreciation of various fixed assets
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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:
Item Life expectancy Salvage value rate Annual depreciation rate
Houses and buildings 20 years 10% 4.50%
Equipment (fuel machinery group excluded) 15-20 years 10% 4.5%-6%
Equipment-fuel machinery group (note) 10% The work quantity 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:
Name of the Company Fixed assets Depreciation amount (RMB/Hour)
Generating unit 1# 391.26
The Company
Generating unit 3# 397.15
Shenzhen New Power Industrial Co., Ltd.(“New
Generating unit 10# 411.15
Power”)
Shen Nan Dian (Zhongshan) Power Co., Generating unit 1# 4,246.00
Ltd.(“Zhongshan Power”) Generating unit 3# 4,160.83
Shen Nan Dian (Dongguan) Weimei Power Co., Generating unit 1# 4,490.64
Ltd.(“Weimei Power”) Generating unit 3# 4,217.56
(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 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.
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(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, amortization 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.
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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.
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
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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. 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
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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 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.
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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 recognize the obligations relating to restructuring
only when it undertakes to dispose part business (namely entering into finalized disposal
agreement).
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
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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.
② Cash-settled Share-based Payment
The cash-settled share-based payment shall be measured at the fair value of liabilities identified
on the basis of shares or other equity instruments undertaken by the Group. For the instruments
that may be exercised immediately after the grant, the fair value shall, on the date of the grant, be
recognized in relevant costs or expenses and the liabilities shall be increased accordingly. For
instruments that cannot be exercised until the services are fully provided during vesting period or
specified performance targets are met, on each balance sheet date within the vesting period, the
services acquired in the current period shall, based on the best estimate of the number of
exercisable instruments, be recognized in relevant costs or expenses and the corresponding
liabilities at the fair value of the liability incurred by the Group.
The Group shall, on each balance sheet date and on each account date prior to the settlement of
the relevant liabilities, re-measure the fair values of the liabilities and include the changes in the
profit or loss for the period.
(2) Accounting treatment in respect of the modification and termination of share-based payment
scheme
If any modification made by the Group to the share-based payment scheme increases the fair
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value of the equity instrument awarded, services obtained shall be increased accordingly. The
increase in fair value of such equity instrument equals to the difference between the fair values
before and after the date of modification. If any modification reduces the total fair value of
share-based payment or is otherwise unfavorable to employees, services obtained shall be treated
as if such modification had never been made, unless the Group has canceled part or the entire
equity instrument award.
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:
① for 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.
② If 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
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conducted on goods sold, moreover, amount of income may be measured in a reliable way,
relevant economic profit may have flown into enterprise and relevant incurred cost or to be
incurred may be measured in a reliable way, implementation of goods sales revenue will be
confirmed. Detail recognization according to specific revenue:
(1) Power sales revenue
The Group generates electricity by thermal power, and realizes sales through incorporation into
Guangdong power grid. As for power sales, the Group realizes revenue when it produces
electricity and obtains the grid power statistics table confirmed by the power bureau.
(2) Revenue from providing labor service
Under the condition of service providing business can be estimated in a reliable way, relevant
economic benefit is likely to flow into enterprise, completion degree of business may be
estimated in a reliable way and relevant incurred cost and to be incurred may be measured in a
reliable way, the revenue from labor service providing recognized. Relevant service revenue may
be confirmed by the Company as percentage-of-completion method on balance sheet date.
Completion degree of service business will be determined as share of incurred service cost in
estimated general cost.
If result of service providing business can’t be estimated in a reliable way, service revenue
should be confirmed as amount of incurred service cost expected to be compensated, where
incurred service cost is taken as period charge. If no compensation is expected for incurred
service cost, income won’t be confirmed.
25. Government subsidy
Government subsidy refers to the monetary asset and non-monetary asset that the Company
obtains from the government free of charge, excluding the capital that the government invests as
an investor and enjoys the corresponding owner's equity. Government subsidies are divided into
the asset-related government subsidy and the income-related government subsidy.
If the government subsidy is a monetary asset, it shall be measured according to the received or
receivable amount. If the government subsidy is a non-monetary asset, it shall be measured at
fair value. If the fair value cannot be obtained reliably, it shall be measured according to the
nominal amount. Government subsidy measured by nominal amount is directly included in the
current profits and losses.
The government subsidy related to the assets is recognized as deferred income and is recorded
into the current profits and losses or the book value of the relevant assets in a reasonable and
systematic manner within the useful life of the relevant assets. Revenue-related government
grants are used to compensate for the related costs or losses incurred during the subsequent
period and are recognized as deferred income and are recognized in the current profit or loss or
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related expenses during the period of recognition of the relevant cost expense or loss; Incurred
costs or losses incurred, directly included in the current profits and losses or offset the relevant
costs.
For the government subsidy containing both asset-related parts and income-related parts at the
same time, distinguish the different parts and make the accounting treatment, classify the parts
which are difficult to be distinguished as the income-related government subsidy.
The government subsidy related to the Company’s daily activities is included in other incomes or
offsets related costs in accordance with the essence of economic business; while the government
subsidy unrelated to the Company’s daily activities is included in non-operating income and
expenditure.
When the recognized government subsidy needs to be refunded or has balance of related
deferred income, offset the book balance of related deferred income, and include the excess parts
in the current profits and losses or (the asset-related government subsidy for offsetting the book
value of underlying assets in initial recognition) adjust the book value of assets; directly include
these belong to other situations in the current profits and losses.
The basis for confirming the relevant public subsidies of the Company and its subsidiaries is as
follows:
Shenzhen Shennandian Environmental Protection Co., Ltd. (Hereinafter referred to as the
"Environmental Protection Company"), a subsidiary of the Company, is a sludge treatment unit,
according to the (CS No. [2015] 78) notice of Ministry of Finance and the State Administration
of Taxation about printing and issuing the "comprehensive utilization of resources and labor
services VAT discounts directory", Environmental Protection Company can enjoy the
value-added tax refund policy for sludge treatment with 70% recognized as the public subsidy
income.
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.
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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.
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.
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(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 too 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 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.
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(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 values 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
(1) Discontinued operation
The discontinued operation refers to the component that meets one of following conditions and
has been disposed by the Company or classified as held-for-sale and can be individually
distinguished when operating and preparing the financial statements: ① the component
represents an independent main Business or a major operating area; ② the component is a parts
that intends to dispose or arrange an independent main business or a major operating area; ③ the
component is a subsidiary obtained only for re-sale.
For details of the accounting treatment methods of discontinued operation, please refer to
Annotation IV. 12 “Classify as assets held for sale”.
(2) 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
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深圳南山热电股份有限公司 2018 年半年度报告全文
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 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 in significant accounting policies and accounting estimates
(1) Changes in accounting policies
No changes of accounting policies in the period
(2) Change of accounting estimate
No changes of accounting estimate 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
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深圳南山热电股份有限公司 2018 年半年度报告全文
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
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
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深圳南山热电股份有限公司 2018 年半年度报告全文
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.
(6) Depreciation and amortization
Assets such as investment properties, fixed assets and intangible assets are depreciated and
amortized 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 amortization costs charged in each reporting period. The useful lives of the
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深圳南山热电股份有限公司 2018 年半年度报告全文
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 amortization, the rate of depreciation or amortization 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 utilized. 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
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深圳南山热电股份有限公司 2018 年半年度报告全文
Taxation items Tax rate
Output tax calculated based on the 5%, 6%, 10% or 16% of the taxable income, VAT
VAT
based on the difference after deducted the current input tax
City maintenance tax Taxed by 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
As for the taxed by residual value, paid with the 1.2% of the residual value after
Real estate tax original value deducted 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 occupied
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
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. (“Engineering
25%
Company”)
Shenzhen Server Energy Co., Ltd. (“Shenzhen Server”) 25%
Shenzhen Shennan Power Environment Protection Co., Ltd. (“Environment Protection
25%
Company”)
Shennandian (Zhongshan) Power Co., Ltd. (“Zhongshan Power”) 25%
Shennandian (Dongguan) Weimei Power Co., Ltd. (“ Weimei Power”) 25%
Shennan Energy (Singapore) Co., Ltd. (“ Singapore company”) 17%
Zhongshan Shennandian Storage Co., Ltd. (“Shen Storage ”) 25%
Hong Kong Syndisome Co., Ltd. (“Syndisome”) 16.50%
2. Taxes preferential and approvals
Name of the Relevant regulation and policies Approval Approval Exemption Period of
Tax company basis institution documents range validity
” Notice of adjustment and
Environment VAT free for
perfection on resources Not Not
VAT Protection Not applicable sludge
comprehensive usage and labor applicable applicable
Co., treatment
VAT policy”(CS No.115[2011])
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深圳南山热电股份有限公司 2018 年半年度报告全文
Shenzhen
Notice on "contents of products Provincial
Resource
Environment with comprehensive utilization of Office, 2015-8-1
SGSQHBA comprehensive
VAT Protection resources and value-added tax SAT to
No.[2015]0002 utilization of
Co., privilege of labor service" (CS (Qianhai 2018-7-31
VAT refund
No. [2015] 78) SAT)
” Arrangement of avoidance of
double-taxation and prevention of Levy income
Enterprise
tax free in mainland China and Not tax by 10% of Not
income SYNDISOME Not applicable
Hong Kong Special applicable total share applicable
tax
Administrative Region”(GSH No. interests
884[2006])
No enterprise
State Tax income tax
Shen Guo Sui
Enterprise Bureau of should pay for
’Enterprise Income Tax Law of Nan Kou Jiao Not
income SYNDISOME Nanshan the dividend
People’s Republic of China” Bei Zi No.: applicable
tax Distinct before 31
[2011]0011
Shenzhen December
2007
Note: "Notice about adjusting and improving the products with comprehensive utilization of
resources and value-added tax policy of labor service" (CS No. [2011] 115) has been abolished
since July 1, 2015, the preferential policy of exempting environmental companies from
added-value tax of labor services for sludge treatment has been abolished since August 2015, and
environmental companies enjoy the drawback policy of added-value tax for comprehensive
utilization of resources in accordance with the notice about printing and distributing "contents of
products with comprehensive utilization of resources and value-added tax privilege of labor
service" (CS No. [2015] 78).
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 2018 (in
RMB/CNY)
1. Monetary fund
Item 30 June 2018 Balance at year-begin
Cash on hand 142,604.63 81,491.35
Bank savings 430,415,610.30 337,821,258.42
Other monetary fund 344,422,065.04 100,413,420.04
Total 774,980,279.97 438,316,169.81
Including: total amount saving aboard 6,048,593.68 5,963,066.07
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深圳南山热电股份有限公司 2018 年半年度报告全文
Note: among the above other monetary capital, there are totally 11,242,792.74 Yuan guarantee
draft margin and guarantee deposit included (on 31 December 2017: 26,702,792.74 Yuan).
2. Note receivable
Item 30 June 2018 Balance at year-begin
Bank acceptance 100,000.00 6,702,500.00
3. Account receivable
(1) Account receivable classified according to types:
30 June 2018
Book Balance Bad debt provision
Type
Book
Proporti Proporti
Amount Amount value
on (%) on (%)
Account receivable with individual major amount and withdrawal 3,474,613 3,474,6
1.23 100.00 0.00
bad debt provision independently .06 13.06
Account receivable with bad debt provision accrual based on 276,963, 276,963,
97.96 - -
similar credit risk charateristics of a portfolio 225.52 225.52
Account receivable with individual minor amount but withdrawal 2,292,02 1,338,1 953,916.
bad debt provision independently
0.81 58.38
7.78 11.37 41
282,729,8 4,812,7 277,917,1
Total 100.00 1.70
66.36 24.43 41.93
(Continued)
Amount at year-begin
Type Book Balance Bad debt provision
Book
Proporti Amoun Proporti value
Amount
on (%) t on (%)
Account receivable with individual major amount and withdrawal bad 3,474,61 3,474,6
2.94 100.00 0.00
debt provision independently 3.06 13.06
Account receivable with bad debt provision accrual based on 106,116, 106,116,
89.81 0.00 0.00
similar credit risk charateristics of a portfolio 231.59 231.59
Account receivable with individual minor amount but withdrawal bad 8,571,65 1,338,1 7,233,54
7.25 15.61
debt provision independently 5.54 11.37 4.17
118,162, 4,812,7 113,349,
Total 100.00 4.07
500.19 24.43 775.76
(2) Age analysis of account receivable:
30 June 2018 Amount at year-begin
Age
Amount Proportion (%) Amount Proportion (%)
Within 1year 276,960,336.52 97.96 112,392,970.35 95.12
1 to 2years - - 0.00 0.00
2 to 3years - - 442,000.00 0.37
Over 3 years 5,769,529.84 2.04 5,327,529.84 4.51
Total 282,729,866.36 100.00 118,162,500.19 100.00
(3) Bad debt provision withdrawal collected or switch back in the Period
(4) No account receivable verified actually in the period
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深圳南山热电股份有限公司 2018 年半年度报告全文
(5) There are no account receivable of the shareholders or related party who hold over 5 %( 5%
included) voting rights in report period.
(6)Balance of top five receivables in debtors at end of the period
Total balance of the top five receivables in debtors dated 30 June 2018 amounted as
274,440,936.52 Yuan, takes 97.07% in total numbers of balance of receivables at period-end.
4. Account paid in advance
(1) Account paid in advance classified according to age:
30 June 2018 Amount at year-begin
Account age
Amount Proportion (%) Amount Proportion (%)
Within 1year 58,460,979.67 99.90 119,008,304.61 99.94
1 to 2years - - - -
2 to 3years 19,082.24 0.03 18,304.20 0.02
Over 3 years 42,504.20 0.07 43,282.74 0.04
Total 58,522,566.11 100.00 119,069,891.55 100.00
(2) Top five account paid in advance by collector
Total top five account paid in advance by collector on 30 June 2018 amount to 56,020,706.54
Yuan, a 95.72% in total year-end account paid in advance
5. Other account receivable
(1) Other account receivable classified according to type:
30 June 2018
Book Balance Bad debt provision
Type Book
Proporti Proporti
Amount Amount value
on (%) on (%)
Other account receivable with individual major amount and withdrawal 20,341, 20,341,
26.24 100.00 -
bad debt provision independently 666.46 666.46
Other account receivable with bad debt provision accrual based 44,840, 44,840,
57.84 -
on similar credit risk charateristics of a portfolio 654.82 654.82
Other account receivable with individual minor amount but withdrawal 12,345, 11,502, 842,561
15.92 93.18
bad debt provision independently 315.87 753.98 .89
77,527, 31,844, 45,683,
Total 100.00 41.07
637.15 420.44 216.71
(Continued)
Amount at year-begin
Book Balance Bad debt provision
Type Book
Proporti Proporti
Amount Amount value
on (%) on (%)
Other account receivable with individual major amount and withdrawal 20,341, 20,341,
28.81 100.00 -
bad debt provision independently 666.46 666.46
Other account receivable with bad debt provision accrual based 37,929, 37,929,
53.71 - -
on similar credit risk charateristics of a portfolio 326.85 326.85
Other account receivable with individual minor amount but withdrawal 12,345, 11,502, 842,561
17.48 93.18
bad debt provision independently 315.87 753.98 .89
70,616, 31,844, 38,771,
Total 100.00 45.09
309.18 420.44 888.74
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深圳南山热电股份有限公司 2018 年半年度报告全文
① Other account receivable with individual major amount and withdrawal bad debt provision
independently
Other account receivable Carrying amount Bad debt provision Proportion (%) Reason
Huiyang County Kangtai Industrial
14,311,626.70 14,311,626.70 100.00 Un-collectible
Company
Shandong Jinan Power Equipment
3,560,000.00 3,560,000.00 100.00 Un-collectible
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
② Account receivable with individual minor amount but withdrawal bad debt provision
independently at period-end
Withdrawal
Item Carrying amount Bad debt provision
proportion (%)
Dormitory amount receivable 2,083,698.16 1,736,004.16 83.31
Deposit receivable 1,769,842.84 1,312,974.95 74.19
Bureau of Finance of Zhongshan
219,192.00 219,192.00 100.00
Municipality
Administrative Office of Nanshan
50,000.00 12,000.00 24.00
District Shenzhen
Individual 7,498,997.87 7,498,997.87 100.00
Other 723,585.00 723,585.00 100.00
Total 12,345,315.87 11,502,753.98 93.18
(2)Bad debt provision withdrawal, collected or switch back in the Period
(3) No other account receivable verified actually in the period
(4) Other account receivable classified according to age:
30 June 2018 Amount at year-begin
Account age
Amount Proportion (%) Amount Proportion (%)
Within 1year 17,122,595.28 22.08 11,017,914.66 15.60
1 to 2years 3,393,612.13 4.38 2,586,964.78 3.66
2 to 3years - - 328,508.03 0.47
Over 3 years 57,011,429.74 73.54 56,682,921.71 80.27
Total 77,527,637.15 100.00 70,616,309.18 100.00
(5) There are no other account receivables of the shareholders who hold over 5 % ( 5% included)
voting rights in report period.
(6) Account receivable from related parties found more in Note X-5. Account receivable/payable
with related party
(7) Top five other account receivables at year-end balance listed by arrears party
Proportion Year-end balance of bad debt
Name of the company Relationship Amount Duration
in total provision
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深圳南山热电股份有限公司 2018 年半年度报告全文
other
account
receivable
(%)
Huidong Server
Harbor
Related
Comprehensive 23,711,275.01 Over 3 years 30.58 -
party
Development
Company
Huiyang Kangtai Non-related
14,311,626.70 Over 3 years 18.46 14,311,626.70
Industrial Company party
Dongguang Feng Gas
Storage and Non-related
5,000,000.00 Within 2 years 6.45 -
Transportation Co., party
Ltd.
Shandong Jinan
Non-related
Generation 3,560,000.00 Over 3 years 4.59 3,560,000.00
party
Equipment Plant
China National
Machinery Non-related
3,424,972.03 Within 2 years 4.42
Equipment party
Engineering Ltd.
Total 50,007,873.74 64.50 17,871,626.70
6. Inventory
(1) Classification of inventory
30 June 2018 Amount at year-begin
Item Depreciation Depreciation
Book Balance Book value Book Balance Book value
provision provision
Raw
122,436,891.15 52,720,793.00 69,716,098.15 130,555,696.89 52,720,793.00 77,834,903.89
materials
Total 122,436,891.15 52,720,793.00 69,716,098.15 130,555,696.89 52,720,793.00 77,834,903.89
(2) Inventory falling price reserve
Carrying balance at Decreased Carrying balance on 30
Type Accrual
year-begin Switch back Written-off June 2018
Raw materials 52,720,793.00 - - - 52,720,793.00
Total 52,720,793.00 - - - 52,720,793.00
(3) Accrual basis and reasons for switch back or written-off
Reasons for switch
Item Specific basis Reasons for written-off
back
Raw materials Cost higher than the net realizable value Not-applicable Raw materials reception
7. Other current assets
Item 30 June 2018 Balance at year-begin
VAT input tax deductible 394,094,957.94 446,786,369.31
Enterprise income tax deductible 7,151,719.08 5,368,153.93
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深圳南山热电股份有限公司 2018 年半年度报告全文
Other 30,000.00 30,000.00
Total 401,276,677.02 452,184,523.24
8. Financial assets available for sale
(1) Financial assets available for sale
30 June 2018 Balance at year-begin
Item Book Depreciatio Book Depreciatio
Book value Book value
Balance n reserves Balance n reserves
Equity instrument available for 63,115,000.0 2,500,000.0 60,615,000.0 63,115,000.0 2,500,000.0 60,615,000.0
sale 0 0 0 0 0 0
63,115,000.0 2,500,000.0 60,615,000.0 63,115,000.0 2,500,000.0 60,615,000.0
Including: measured by cost
0 0 0 0 0 0
63,115,000.0 2,500,000.0 60,615,000.0 63,115,000.0 2,500,000.0 60,615,000.0
Total
0 0 0 0 0 0
(2) Measured by cost
Book Balance Depreciation reserves
Investee company
+, 30 June +, 30 June
Year-begin 2018 Year-begin 2018
- -
60,615,000.0 60,615,000.0
CPI Jiangxi Nuclear Power Co., Ltd. - - - -
0 0
Shenzhen Petrochemical Products Bonded Trading 2,500,000.0 2,500,000.0
2,500,000.00 - 2,500,000.00 -
Co., Ltd. 0 0
63,115,000.0 63,115,000.0 2,500,000.0 2,500,000.0
Total - -
0 0 0 0
(Continued)
Investee company Shareholding ratio in investee company (%) Cash bonus
CPI Jiangxi Nuclear Power Co., Ltd. 5.00
-
Shenzhen Petrochemical Products Bonded Trading Co., Ltd. 4.00
-
9. Long-term equity investment
+,-
Investment Balance of
Balance at gains/losses depreciation
Investee company 30 June 2018
year-begin Other reserves on 30
recognized by June 2018
equity method
Affiliated business
Huidong Server 18,254,673.40 -1,076,904.31 - 17,177,769.09 -
Total 18,254,673.40 -1,076,904.31 - 17,177,769.09 -
10. Investment real estate
House, Land use Construction in
Item Total
buildings right process
- 100 -
深圳南山热电股份有限公司 2018 年半年度报告全文
I. Original book value
9,708,014.9
1. Balance at year-begin 9,708,014.96 - -
6
2.Current increased - - - -
3.Current decreased - - - -
9,708,014.9
4. Balance on 30 June 2018 9,708,014.96 - -
6
II. accumulated depreciation and accumulated
-
amortization
6,905,574.6
1. Balance at year-begin 6,905,574.65 - -
5
2. Current increased 98,068.80 - - 98,068.80
(1) accrual or amortization 98,068.80 - - 98,068.80
3. Current decreased - - - -
7,003,643.4
4. Balance on 30 June 2018 7,003,643.45 - -
5
III. depreciation provision -
1. Balance at year-begin - - - -
2. Current increased - - - -
3.Current decreased - - - -
4. Balance on 30 June 2018 - - - -
IV. Book value -
2,704,371.5
1. Balance on 30 June 2018 2,704,371.51 - -
1
2,802,440.3
2. Book value at year-begin 2,802,440.31 - -
1
11. Fixed assets
(1) Fixed assets
House and Machinery Transportation Other
Item Total
buildings equipment tools equipment
I. Original book value
1. Balance at year-begin 450,244,770.68 4,040,500,312.08 21,308,218.22 48,167,921.16 4,560,221,222.14
2. Current increased 36,801,321.17 17,301,918.19 3,284,554.59 742,308.57 58,130,102.52
(1) Purchase 36,801,321.17 864,957.27 3,284,554.59 742,308.57 41,693,141.60
(2) Construction in process
- 16,436,960.92 - - 16,436,960.92
transfer-in
(3) increased by enterprise
- - - - -
combination
3. Current decreased 583,553.00 57,562,794.22 890,442.00 13,146.00 59,049,935.22
(1) Disposal or scrap 583,553.00 57,562,794.22 890,442.00 13,146.00 59,049,935.22
4. Balance at 30 June 2018 486,462,538.85 4,000,239,436.05 23,702,330.81 48,897,083.73 4,559,301,389.44
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深圳南山热电股份有限公司 2018 年半年度报告全文
II. Accumulated depreciation
1. Balance at year-begin 282,063,887.10 2,649,610,431.93 16,993,672.09 40,811,456.40 2,989,479,447.52
2. Current increased 6,465,964.24 57,038,778.65 452,620.25 520,650.40 64,478,013.54
(1) accrual 6,465,964.24 57,038,778.65 452,620.25 520,650.40 64,478,013.54
3. Current decreased 360,687.06 48,897,726.91 801,397.80 11,831.40 50,071,643.17
(1) Disposal or scrap 360,687.06 48,897,726.91 801,397.80 11,831.40 50,071,643.17
4. Balance at 30 June 2018 288,169,164.28 2,657,751,483.67 16,644,894.54 41,320,275.40 3,003,885,817.89
III. impairment provision
1. Balance at year-begin 14,860,025.13 135,261,184.44 - - 150,121,209.57
2. Current increased
(1) accrual - - - - -
3. Current decreased 8,987,299.45 - - 8,987,299.45
(1) Disposal or scrap - 8,987,299.45 - - 8,987,299.45
4. Balance at 30 June 2018 14,860,025.13 126,273,884.99 0.00 0.00 141,133,910.12
IV. Book value
1. Balance at 30 June 2018 183,433,349.44 1,216,214,067.39 7,057,436.27 7,576,808.33 1,414,281,661.43
2. Book value at year-begin 153,320,858.45 1,255,628,695.71 4,314,546.13 7,356,464.76 1,420,620,565.05
(2) Idle fixed assets temporary
Accumulate
Original Impairment
Item d Book value Note
book value provision
depreciation
Houses and 137,799,917. 100,821,833. 19,008,224. 17,969,859.
Wharf, processing workshop of heavy oil
buildings 53 59 87 07
594,477,563. 500,135,626. 53,555,257. 40,786,679. Processing equipment of heavy oil and
Equipment
61 57 36 68 generation unit
Transport
256,300.00 230,670.00 - 25,630.00 Idle vehicles
equipment
732,533,781. 601,188,130. 72,563,482. 58,782,168.
Total
14 16 23 75
(3) Fixed assets without property license obtained
Item Book value Reasons
Booster station 5,567,100.88 Procedures uncompleted
Steam turbine workshop 2,014,811.08
Procedures uncompleted
Chemical water tower 3,327,665.86
Procedures uncompleted
Treatment shop for heavy oil 650,123.93
Procedures uncompleted
Start-up boiler house 146,191.99 Procedures uncompleted
Fire pump room 339,374.37 Procedures uncompleted
Circulating water pump house 2,134,592.90 Procedures uncompleted
- 102 -
深圳南山热电股份有限公司 2018 年半年度报告全文
Comprehensive building 3,557,285.99 Procedures uncompleted
Production and inspection building 5,745,308.85 Procedures uncompleted
Administrative building 5,907,084.49 Procedures uncompleted
Mail room of the main entrance 239,379.05 Procedures uncompleted
Turbine building and annex building 10,745,357.65 Procedures uncompleted
Plant’s ventilating system 558,407.71 Procedures uncompleted
Office building 5,375,147.82 Procedures uncompleted
Comprehensive building 1,192,940.72
Procedures uncompleted
Draft cooling tower 3,452,423.42 Procedures uncompleted
Chemical water workshop and foundation of water
1,640,829.43
tank Procedures uncompleted
Industry pool and industry pump house 720,128.52 Procedures uncompleted
Start-up boiler house 120,327.67 Procedures uncompleted
Oil treatment room and oil un-loading platform 337,538.98 Procedures uncompleted
Comprehensive building canteen 314,580.33 Procedures uncompleted
Total 54,086,601.64
12. Fixed assets disposal
Item 30 June 2018 Balance at year-begin
Fixed assets ready for disposal 1,314.60
-
Total 1,314.60
-
- 103 -
13. Construction in process
(1) Construction in process
30 June 2018 Amount at year-begin
Item
Book Balance Impairment provision Book value Book Balance Impairment provision Book value
Oil to Gas Works 32,871,600.26 32,871,600.26 - 32,871,600.26 32,871,600.26 -
Cogeneration of heat and electricity Project 62,923,817.59 - 62,923,817.59 47,221,713.47 - 47,221,713.47
Other technical innovation project 5,575,705.33 - 5,575,705.33 3,737,028.45 - 3,737,028.45
Total 101,371,123.18 32,871,600.26 68,499,522.92 83,830,342.18 32,871,600.26 50,958,741.92
(2) Changes of significant projects in construction in the year
Transferred fixed Other decrease
Item Budget Amount at year-begin Increase of this year 30 June 2018
assets in this year in the year
Oil to Gas Works - - - 32,871,600.26
74,400,000.00 32,871,600.26
Cogeneration of heat and electricity Project 15,702,104.12 - - 62,923,817.59
120,000,000.00 47,221,713.47
Technological transformation project - 18,275,637.80 16,436,960.92 - 5,575,705.33
3,737,028.45
Total 194,400,000.00 83,830,342.18 33,977,741.92 16,436,960.92 - 101,371,123.18
(3) Impairment provision
Item Amount at year-begin Increase Decreased 30 June 2018 Reasons of accrual
Oil to Gas Works 32,871,600.26 - - 32,871,600.26 In idle condition
(4) Idle construction in progress temporary
30 June 2018 Amount at year-begin
Item
Book Balance Impairment provision Net book value Book Balance Impairment provision Net book value
Oil to Gas Works 32,871,600.26 32,871,600.26 - 32,871,600.26 32,871,600.26 -
104
14. Intangible assets
Item Land use right Software Total
I. Original book value
1. Balance at year-begin 91,253,625.27 3,678,109.85 94,931,735.12
2. Current increased -
(1) purchase - -
3. Current decreased -
(1) disposal - - -
4. Balance at 30 June 2018 91,253,625.27 3,678,109.85 94,931,735.12
II. Accumulated amortization
1. Balance at year-begin 42,793,252.98 3,667,981.54 46,461,234.52
2. Current increased 1,099,620.36 144,211.01 1,243,831.37
(1) accrual 1,099,620.36 144,211.01 1,243,831.37
3. Current decreased -
(1) disposal - - -
4. Balance at 30 June 2018 43,892,873.34 3,812,192.55 47,705,065.89
III. Impairment provision
1. Balance at year-begin - - -
2. Current increased
(1) accrual - - -
3. Current decreased
(1) disposal - - -
4. Balance at 30 June 2018 - - -
IV. Book value
1. Balance at 30 June 2018 47,360,751.93 -134,082.70 47,226,669.23
2. Book value at year-begin 48,460,372.29 10,128.31 48,470,500.60
15. Deferred income tax assets
Item 30 June 2018 Amount at year-begin
Deferred income tax assets:
Bad debt provision of account receivable 1,159,926.83 1,159,926.83
Other provision for bad debts of accounts receivable 180,896.25 180,896.25
Staff salary payable 830,621.00 830,621.00
Provision for devaluation of long-term equity investment 625,000.00 625,000.00
Others 125,592.57 125,592.57
Total 2,922,036.65 2,922,036.65
16. Other non-current assets
Item 30 June 2018 Amount at year-begin
Project of LNG(Note) 22,882,181.78 22,882,181.78
Account for engineering and equipment paid in advance - 10,048,600.00
- 105 -
Total 22,882,181.78 32,930,781.78
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”.
17. Short-term loans
Item 30 June 2018 Amount at year-begin
Guarantee loans 100,000,000.00 465,850,000.00
Credit loans 811,500,000.00 50,000,000.00
Total 911,500,000.00 515,850,000.00
18. Note payable
Type 30 June 2018 Amount at year-begin
Trade acceptance - -
Bank acceptance - 51,439,580.56
Total - 51,439,580.56
19. Account payable
(1) Details of account payable
Item 30 June 2018 Amount at year-begin
Natural gas 41,996,987.91 -
Materials 3,274,274.35 13,670,020.13
Electricity 1,777,099.99 811,442.78
Engineering funds 5,685,183.33 0.00
Others 1,600,327.36 613,449.69
Total 54,333,872.94 15,094,912.60
(2) There is no fund of shareholders with 5 %( including 5%) or more of the voting shares in the Group in
the report period.
20. Wages payable
(1) Wages payable
Item Balance at year-begin Increase this year Decrease this year 30 June 2018
I. Short-term remuneration 44,460,199.34 73,010,147.23 75,842,903.46 41,627,443.11
II. Post-employment welfare-defined
3,877,388.91 10,372,785.90 9,375,056.43 4,875,118.38
contribution plans
III. Severance Pay - - - -
IV. Other welfare due within one year - - - -
- 106 -
Total 48,337,588.25 83,382,933.13 85,217,959.89 46,502,561.49
(2) Short-term remuneration
Item Balance at year-begin Increase this year Decrease this year 30 June 2018
1. Wages, bonuses, allowances and
41,922,487.80 60,406,392.81 62,896,080.00 39,432,800.61
subsidies
2. Welfare for employee 0.00 642,162.22 641,787.22 375.00
3. Social insurance 246,699.75 3,297,969.51 3,222,647.31 322,021.95
Including: Medical insurance 215,069.63 3,115,401.00 3,051,626.07 278,844.56
Work injury insurance 23,713.77 111,283.97 104,494.87 30,502.87
Maternity insurance 7,916.35 71,284.54 66,526.37 12,674.52
Wages in arrears - - - -
4. Housing provident fund 698,573.20 7,892,093.10 7,854,454.80 736,211.50
5.Union funds and staff education
1,592,438.59 771,529.59 1,227,934.13 1,136,034.05
expenses
Total 44,460,199.34 73,010,147.23 75,842,903.46 41,627,443.11
(3) Defined contribution plans
Item Balance at year-begin Increase this year Decrease this year 30 June 2018
1. Basic Endowment insurance 541,656.23 7,758,457.20 7,600,353.85 699,759.58
2. Unemployment insurance 13,335.68 98,581.70 91,564.58 20,352.80
3. Enterprise annuities 3,322,397.00 2,515,747.00 1,683,138.00 4,155,006.00
Total 3,877,388.91 10,372,785.90 9,375,056.43 4,875,118.38
21. Taxes payable
Item 30 June 2018 Amount at year-begin
VAT 4,219,913.98 5,660,770.59
Enterprise income tax 7,219,203.43 3,959,377.93
Individual income tax 2,076,589.47 2,064,852.00
Land-use tax of town 566,975.50 1,405,156.40
Real estate tax 2,246,238.86 1,435,820.81
Others 453,594.52 911,781.03
Total 16,782,515.76 15,437,758.76
22. Interest payable
Item 30 June 2018 Amount at year-begin
Long-term loan interest of installment and interest charges 138,616.88 108,741.19
Interest payable of short-term loan 3,265,233.29 2,898,252.14
Total 3,403,850.17 3,006,993.33
23. Other account payable
- 107 -
Item 30 June 2018 Amount at year-begin
Project expense 21,722,183.53 24,040,896.76
Quality guarantee deposit 12,511,146.03 13,632,891.13
Equipment amount 3,910,071.02 439,237.63
Material amount 1,495,078.48 -
Land use right charge 752,198.28 423,005.75
Fund of the Board 481,370.27 479,659.27
Accrued expenses 29,567,922.10 34,865,705.80
Other 15,735,466.29 9,332,787.23
Total 86,175,436.00 83,214,183.57
24. Non-current liability due within one year
Item 30 June 2018 Balance at year-begin
Long-term loans due within one year - 32,400,000.00
Total - 32,400,000.00
25. Long-term loans
Item 30 June 2018 Amount at year-begin
Guarantee loans 25,940,000.00 58,340,000.00
Credit loans - -
Less: Long-term loans due within one year - 32,400,000.00
Total 25,940,000.00 25,940,000.00
26. Accrued liabilities
Item 30 June 2018 Amount at year-begin Reason
Offering guarantee outside 26,766,590.38 26,788,590.38 Note
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 RMB 27,500,000.00. It was estimated
that 27,500,000.00 Yuan will lost in related with the above mentioned events. In concerned with the
attorney fees for deal with problems left over from history, totally 733,409.62 Yuan costs from 2014 to
30 June 2018, the ending balance amounted as 26,766,590.38 Yuan
- 108 -
27. Deferred income
Item Amount at year-begin Current increased Current decreased 30 June 2018
Deferred income 41,948,231.12 - 2,022,867.64 39,925,363.48
Including, items with government grants involved:
Current decreased
Amount at Current Amount Assets /income
Liability Other 30 June 2018
year-begin increase related
reckoned in
changes
other revenue
Subsidy for energy-saving
5,283,816.88 - 57,018.66 - 5,226,798.22 Assets related
technology reform
Subsidy for low-nitrogen
917,121.50 - 189,986.86 - 727,134.64 Assets related
transformation project
Treasury subsidies for sludge
3,336,250.00 - 127,500.00 - 3,208,750.00 Assets related
drying
Support fund of recycling
8,745,279.79 - 323,501.46 - 8,421,778.33 Assets related
economy for sludge drying
Subsidy for project of
low-nitrogen transformation for 22,894,446.91 - 1,276,992.42 - 21,617,454.49 Assets related
welcoming the Universidad
Support fund of enterprise
270,196.04 - 30,588.24 - 239,607.80 Assets related
informationalization
Funded of energy efficiency
improvement for electric 501,120.00 17,280.00 - 483,840.00 Assets related
machine in SZ
Total 41,948,231.12 - 2,022,867.64 - 39,925,363.48
28. Share capital
Changes in this year(+ -)
Balance at
Item New Capitalizing Balance at 30 June 2018
year-begin Bonus
shares from Other Subtotal
shares
issued reserves
Total shares 602,762,596.00 - - - - - 602,762,596.00
29. Capital reserve
Item Balance at year-begin Increase in the year Decrease in the year 30 June 2018
Capital premium 233,035,439.62 - - 233,035,439.62
Other capital reserve 129,735,482.48 - - 129,735,482.48
Other 362,770,922.10 - - 362,770,922.10
30. Surplus reserve
Item Balance at year-begin Increase in the year Decrease in the year 30 June 2018
Legal surplus reserve 310,158,957.87 - - 310,158,957.87
Discretionary surplus reserve 22,749,439.73 - - 22,749,439.73
Total 332,908,397.60 - - 332,908,397.60
31. Retained profit
- 109 -
Item 30 June 2018 Balance at year-begin
Retained profit of last year before adjusted 660,176,169.69 644,271,987.22
Total retained profit adjusted (increased with +, decreased with -) - -
Retained profit at beginning of the year after adjusted 660,176,169.69 644,271,987.22
Add: net profit attributable to shareholders of parent company 30,012,095.22 15,904,182.47
Retained profit at year-end 690,188,264.91 660,176,169.69
32. Operating income and operating cost
Jan. – Jun. 2018 Jan. – Jun. 2017
Item
Income Cost Income Cost
Main business 1,078,030,178.26 968,719,412.92 871,032,443.81 827,070,339.40
Other business 1,730,036.54 975,640.11 1,930,253.52 691,219.93
Total 1,079,760,214.80 969,695,053.03 872,962,697.33 827,761,559.33
33. Tax and surcharge
Item Jan. – Jun. 2018 Jan. – Jun. 2017
City maintenance tax 2,286,803.77 1,076,429.84
House duty
1,275,543.49 918,709.23
Stamp tax
520,484.00 344,854.98
Educational surcharge
572,820.01 953,710.38
Land use tax
50,960.52 200,777.04
Vehicle and vessel use tax
15,390.94
Total
4,722,002.73 3,494,481.47
34. Management expenses
Item Jan. – Jun. 2018 Jan. – Jun. 2017
Salary 23,190,344.99 20,156,152.48
Leasing expenses 3,092,069.50 3,014,660.30
Entertainment expense 1,558,869.52 1,654,048.96
Expenses for agency appointment 646,103.90 1,160,974.45
Vehicles expenses 1,861,732.77 1,837,717.51
Expenses from the Board 546,064.70 1,006,497.20
Housing fund 1,842,356.95 1,736,661.05
Depreciation expense 1,987,153.39 1,351,420.01
Amortization of intangible assets 935,811.89 938,591.10
- 110 -
Item Jan. – Jun. 2018 Jan. – Jun. 2017
Specific expenses 14,584.43 119,679.73
Environmental expense 874,452.57 900,528.44
Sundry expenses 1,387,173.86 1,283,195.42
Expenses for enterprise culture 103,725.00 87,511.70
Property expense 455,396.71 447,758.12
Office expenses 346,790.68 166,523.48
Pension insurance 2,015,878.90 2,184,952.61
Communication charge 647,596.16 598,622.04
Business traveling charge 259,624.12 216,806.54
Stock charge 29,929.33 40,377.36
Medicare 877,227.73 867,818.90
Labor union dues 290,467.56 457,849.20
Personnel education fund 61,044.53 141,084.34
Others 3,657,250.85 821,787.52
Total 46,681,650.04 41,191,218.46
35. Financial expenses
Item Jan. – Jun. 2018 Jan. – Jun. 2017
Interest expenditure 24,038,132.91 39,088,778.10
Less : interest income 2,187,166.10 7,910,187.73
Exchange gains/losses -73,770.20 184,715.46
Others 517,089.32 316,084.62
Total 22,294,285.93 31,679,390.45
36. Investment gains/losses
Item Jan. – Jun. 2018 Jan. – Jun. 2017
Gains of long-term equity investment on Equity -1,076,904.31 -1,019,420.00
Investment gains from long-term equity investment disposal - -
Total -1,076,904.31 -1,019,420.00
37. Assets impairment loss
Item Jan. – Jun. 2018 Jan. – Jun. 2017
Loss on bad debt - -480,710.97
Total - -480,710.97
38. Other income
Item Jan. – Jun. 2018 Jan. – Jun. 2017
- 111 -
Item Jan. – Jun. 2018 Jan. – Jun. 2017
Government bond subsidy for sludge drying 1,276,992.42 1,276,992.42
Support fund of enterprise informationalization 30,588.24 30,588.24
Subsidy for energy-saving technology reform 247,005.52 246,169.87
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
Energy efficiency improvement for electric machine 17,280.00 12,960.00
VAT refund 2,013,937.74 1,272,151.11
Other 100,000.00 200,000.00
Total 4,136,805.38 3,489,863.10
39. Non-operating income
Item Jan. – Jun. 2018 Jan. – Jun. 2017
Gains of non-current assets damaged or scrapped - -
Others 4,775.00 5,796.00
Total 4,775.00 5,796.00
40. Non-operating expense
Item Jan. – Jun. 2018 Jan. – Jun. 2017
Expenses from external donation - 10,000.00
Total loss from disposal of non-current assets 849,018.73 160,729.35
Other 10,000.00 1,280.22
Total 859,018.73 172,009.57
41. Income tax expenses
Item Jan. – Jun. 2018 Jan. – Jun. 2017
Current income tax measured by tax law and relevant
8,092,879.62 920,495.87
regulation
42. Cash flow statement
(1) Cash received with other operating activities concerned
Item Jan. – Jun. 2018 Jan. – Jun. 2017
Open credit received - 367,531,301.56
Interest income 2,166,649.41 7,910,187.73
Others 3,843,730.64 646,786.50
Total 6,010,380.05 376,088,275.79
(2) Cash paid for other operating activities
Item Jan. – Jun. 2018 Jan. – Jun. 2017
- 112 -
Item Jan. – Jun. 2018 Jan. – Jun. 2017
Expense on agency appointment 646,103.90 1,160,974.45
Fund for the Board 546,064.70 1,006,497.20
Leasing expense 3,547,466.21 3,462,418.42
Entertainment expense 1,558,869.52 1,654,048.96
Vehicles expense 1,861,732.77 1,837,717.51
Enterprise culture 103,725.00 87,511.70
Communication fee 647,596.16 598,622.04
Environment protection fee 874,452.57 900,528.44
Others 16,098,724.40 10,904,167.56
Total 25,884,735.23 21,612,486.28
(3) Cash received with financing activities concerned
Item Jan. – Jun. 2018 Jan. – Jun. 2017
Deposit received 15,460,000.00 11,309,958.60
43. Supplementary information on cash flow statement
(1) Regulate the net profit into the cash flow of operating activities
Supplementary information Jan. – Jun. 2018 Jan. – Jun. 2017
1. Regulate the net profit into the cash flow of operating
activities
Net profit 28,829,762.75 -30,712,587.05
Add: Asset impairment provision - -480,710.97
Depreciation of fixed assets 64,478,013.54 61,654,099.55
Amortization of intangible assets 1,243,831.37 1,305,344.19
Amortization of long-term deferred expenses - -
Loss (gain) from disposing fixed assets, intangible assets and
- -
other long-term assets
Abandonment loss from fixed assets 849,018.73 160,729.35
Financial expenses(gain) 24,038,132.91 39,088,778.10
Investment loss(gain) 1,076,904.31 1,019,420.00
Decrease (increase) of deferred income tax assets - -
Decrease (increase)of inventory 8,118,805.74 -4,727,006.55
Decrease (increase) of receivable operating items -60,023,522.47 214,908,295.24
Increase (decrease) of payable operating items -16,020,312.60 -347,665,217.13
Net cash flow from operation activities 52,590,634.28 -65,448,855.27
2. Major investment and financing activities not involving
cash income and expenditure:
Debt capitalization - -
- 113 -
Supplementary information Jan. – Jun. 2018 Jan. – Jun. 2017
Convertible company bond due within one year - -
Fixed assets acquired under finance leases - -
3. Net change of cash and cash equivalents:
Year-end balance 763,737,487.23 320,399,482.41
Less: Balance of cash at period-begin 411,613,377.07 1,389,482,327.86
Net increase of cash and cash equivalents 352,124,110.16 -1,069,082,845.45
(2) Composition of cash and cash equivalent
Item Jan. – Jun. 2018 Jan. – Jun. 2017
I. Cash 763,737,487.23 320,399,482.41
Including: Cash on hand 142,604.63 112,358.49
Bank savings available for payment needed 430,415,610.30 319,842,865.25
Other monetary capital available for payment needed 333,179,272.30 444,258.67
II. Cash equivalent
III. Balance of cash and cash equivalent at period-end 763,737,487.23 320,399,482.41
44. Assets of ownership or use right restricted
Item 30 June 2018 Restricted reason
Monetary Fund 11,242,792.74 Deposit
Total 11,242,792.74
45. Foreign currency
Item Foreign currency balance on 30 June 2018 Conversion rate RMB converted
Monetary fund
Including: USD 855,607.48 6.6166 5,661,212.47
Euro 1,017.87 7.6516 7,788.30
HKD 599,173.75 0.8431 505,163.20
SGD 5,374.81 4.8386 26,006.56
VII. Change of consolidate scope
No change of consolidate scope in the year.
VIII. Equity in other entity
1. Equity in subsidiaries
(1) Composition of the Group
Main operation Registration Business Shareholding ratio
Subsidiary Acquired way
place place nature (%)
Shenzhen Server (note ) Shenzhen Shenzhen Trading 50 Establishment
New Power Company Shenzhen Shenzhen Power 100 Establishment
- 114 -
Subsidiary Main operation Registration Business Shareholding ratio Acquired way
place place nature (%)
generation
Zhongshan Power Power
Zhongshan Zhongshan 80 Establishment
Company generation
Engineering
Engineering Company Shenzhen Shenzhen 100 Establishment
consulting
Power
Weimei Power Company Dongguan Dongguan 70 Establishment
generation
Environment Protection
Shenzhen Shenzhen Engineering 100 Establishment
Company
Singapore company Singapore Singapore Trading 100 Establishment
Shen Storage Zhongshan Zhongshan Storage 80 Establishment
Import &
SYNDISOME Hong Kong Hong Kong 100 Not under the same 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) Important non-wholly-owned subsidiary
Gains/losses Dividend announced to
Share-holding ratio of
Subsidiary attributable to distribute for minority Ending equity of minority
minority (%)
minority in the Period in the Period
Zhongshan Power
393,668.45 - -12,089,882.94
Company 20
Weimei Power Company -319,787.79 - 29,838,229.72
30
(3) Main finance of the important non-wholly-owned subsidiary
Balance on 30 June 2018
Subsidiary Non-current
Current assets Non-current assets Total assets Current liability Total liability
liability
Zhongshan
Power 170,537,865.52 572,100,580.42 742,638,445.94 771,193,927.75 31,893,932.86 803,087,860.61
Company
Weimei
Power 221,277,012.49 510,258,816.85 731,535,829.34 632,075,063.61 - 632,075,063.61
Company
(Continued)
Subsidiary Balance at year-begin
- 115 -
Non-current Non-current
Current assets Total assets Current liability Total liability
assets liability
Zhongshan
Power 168,596,429.57 592,847,484.20 761,443,913.77 791,720,732.32 32,140,938.38 823,861,670.70
Company
Weimei Power
229,231,009.01 528,619,381.52 757,850,390.53 657,323,665.49 - 657,323,665.49
Company
(Continued)
Current period
Subsidiary Total comprehensive Cash flow from operation
Operation Income Net profit
income activity
Zhongshan Power Company 239,056,530.40 1,968,342.26 1,968,342.26 130,078,167.14
Weimei Power Company 249,516,171.77 -1,065,959.31 -1,065,959.31 28,275,188.27
(Continued)
Last period
Subsidiary Total comprehensive Cash flow from operation
Operation Income Net profit
income activity
Zhongshan Power Company 230,866,147.88 -13,385,377.59 -13,385,377.59 -14,568,572.01
Weimei Power Company 171,896,422.01 -12,478,369.20 -12,478,369.20 -6,869,702.57
2. Equity in joint venture and cooperative enterprise
(1) Joint venture or cooperative enterprise
Joint venture and Share-holding ratio (%)
cooperative Main operation Registered Business
Accounting treatment
place place nature
enterprise Directly Indirectly
Huidong Server Huizhou Huizhou Wharf 40 Equity method
(2)Financial information for minor joint venture and cooperative enterprise
Closing balance/amount in the
Item Opening balance/amount in last year
year
Joint venture
Total investment book value 17,177,769.09 18,254,673.40
Total of the follow counted by share-holding ratio
—Net profit -1,076,904.31 -1,019,420.00
—Other comprehensive benefits
—Total comprehensive income -1,076,904.31 -1,019,420.00
Note: The 60% equity of Huidong Server, held by controlling subsidiary Shenzhen Server are transferred
on 9 December 2013, the other 40% equity will re-measured by appraisal value when losing the
controlling right.
- 116 -
IX. Risks associated with financial instruments
The Company's main financial instruments include equity investment, borrowings, accounts receivable,
accounts payable, etc., see details of each financial instrument in related items of this annotation xi. The
risks associated with these financial instruments and the risk management policies adopted by the
Company to reduce these risks are described as below. The management of the Company manages and
monitors these risk exposures to ensure that the above risks are controlled within the limit range.
The Company uses the sensitivity analysis technique to analyze the possible impact of the risk variable
on the current profit and loss or the shareholders' equity. Since any risk variable rarely changes in
isolation, and the correlation existing among the variables shall have a significant effect on the final
amount of changes about a certain risk variable, therefore, the following proceeds by assuming that the
change in each variable is independent.
(i) Risk management objectives and policies
The objective of the Company's risk management is to gain a proper balance between risks and profits,
minimize the negative impact of risks on the Company's operating results, and maximize the benefits of
shareholders and other equity investors. Based on the risk management objective, the basic strategy of the
Company's risk management is to identify and analyze the risks faced by the Company, establish
appropriate bottom line to bear the risks and carry out risk management, and timely and reliably supervise
the risks so as to control the risks within the limit range.
1 Market risk
(1) Foreign exchange risk
Foreign exchange risk refers to the risk of losses due to exchange rate changes. The Company’s foreign
exchange risk is mainly related to the US dollar. On June 30, 2018, except for the balance of foreign
currency monetary items, the assets and liabilities of the Company are RMB balance. The foreign
exchange risk arising from the assets and liabilities of such foreign currency balances may have an
impact on the Company's operating results.
(2) Interest rate risk - cash flow change risk
The Company's cash flow change risk of financial instruments arising from interest rate change is mainly
related to the floating interest rate bank loans (see details in annotation xi, 17, annotation xi, 25).
Interest rate risk sensitivity analysis:
The interest rate risk sensitivity analysis is based on the following assumptions:
Changes in market interest rates affect the interest income or expense of financial instruments with
variable interest rate;
For financial instruments with fixed rate by fair value measurement, the changes in market interest rates
only affect their interest income or expense;
For derivative financial instruments designated as hedging instruments, the changes in market interest
- 117 -
rates affect their fair value, and all interest rate hedging prediction is highly effective;
Calculate the changes in fair value of derivative financial instruments and other financial assets and
liabilities by using the cash flow discount method at the market interest rate at the balance sheet date.
On the basis of above assumptions, in case that other variables keep unchanged, the pre-tax effect of
possible reasonable changes in interest rates on current profits and losses and shareholders' equity is as
follows:
The period Last period
Rate changes
Net profit Shareholder’ interest Net profit Shareholder’ interest
5% increased 1,180,390.92 1,019,303.74 1,952,727.44 1,698,182.60
5% decreased -1,180,390.92 -1,019,303.74 -1,952,727.44 -1,698,182.60
2. Credit risk
On June 30, 2018, the maximum credit risk exposure that could cause financial loss to the Company is
mainly due to the failure of the other party to fulfill the obligations, resulting in losses to the Company's
financial assets, including:
The book value of financial assets confirmed in the consolidated balance sheet; for the financial
instrument measured by fair value, the book value reflects its risk exposure but not the maximum risk
exposure, and its maximum risk exposure will change with the changes in future fair value.
To reduce the credit risk, the Company has set up a team to determine the credit lines, examine and
approve the credit, and perform other monitoring procedures to ensure that necessary measures are taken
to recover the expired claims. In addition, the Company reviews the recovery of each account receivable
at each balance sheet date to ensure that sufficient provision for bad debts is made for uncollectible funds.
As a result, the Company's management believes that the Company's credit risk has been greatly reduced.
The company's working capital is deposited in banks with high credit ratings, so the credit risk of
working capital is rather low.
3. Liquidity risk
In managing the liquidity risk, the Company keeps the cash and cash equivalents that the management
considers to be sufficient and supervise them so as to meet the Company's operating needs and reduce the
impact of fluctuations in cash flows. The Company’s management monitors the use of bank loans and
ensures to comply with the loan agreement.
The Company uses bank loans as the main source of funds.
X. 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.
- 118 -
2. Subsidiaries of the Company
Found more in 1. 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 party
Other related party Relationship with the Group
Shareholders have major influence on the
Shenzhen Energy Group Co., Ltd. (“Energy Group ”)
Company
Dongguan Weimei Ceramics Industrial Park Co., Ltd. (” Weimei Ceramics”) Minority shareholders of the subsidiaries
Shenzhen Mawan Power Co., Ltd. (“Mawan Power Company”) Subsidiary of ultimate controller of Energy Group
Shenzhen Moon Bay Oil Harbor Co., Ltd. (“Moon Bay Oil Company”) Subsidiary of ultimate controller of Energy Group
Shenzhen Energy Group Holding Co., Ltd. (” Energy Holding”) Subsidiary of ultimate controller of Energy Group
Shenzhen Pipe Energy Technology Development Co., ltd. (“Pipe Technology”) Others Related party
Alltrust Insurance Co., Ltd. (“Alltrust Insurance”) Other Related party
Director of the Company and other senior executives Key management staff
5. Account payable/receivable from related parties
(1) Account receivable
Balance on 30 June 2017 Balance at year-begin
Item Bad debt Bad debt
Book balance Book balance
provision provision
Other account receivable:
Huidong Server 10,794,801.42 - 11,022,401.44 -
Huidong Server managed account 12,916,473.59 - 12,829,734.22 -
Total 23,711,275.01 - 23,852,135.66 -
XI. 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
Item 30 June 2018 Amount at year-begin
Minimum lease payments of irrevocable operating lease:
The first year after balance sheet day 765,519.21 1,517,717.46
- 119 -
The second year after balance sheet day 1,557,680.33 1,557,680.33
The third year after balance sheet day 1,557,680.33 1,557,680.33
Subsequent years 58,171,101.39 58,171,101.39
Total 62,051,981.26 62,804,179.51
2. Contingency
Nil
XII. Events Occurring after the Balance Sheet Date
Nil
XIII. Other important events
1. Segment information
(1) Determining basis and accounting policies of reportable segments
According to the Group's internal organization structure, management requirements and internal reporting
system, the Group's business is divided into three operating segments including power and heat supply, fuel
oil trade and other business, the Group's management periodically evaluates the operating results of these
segments so as to determine the allocation of resources and assess their performances.
Segmental reporting information is disclosed in accordance with the accounting policies and measurement
standards adopted by each segment for reporting to the management, the measurement basis keep pace with
the accounting and measurement basis used for preparing financial statements.
(2) Financial information of reportable segment
Item Power supply and heat supply Fuel oil trade Other Offset between segments Total
Main business income 1,029,148,179.65 - 48,881,998.61 - 1,078,030,178.26
Main business cost 996,279,249.67 30,632,792.14 58,192,628.89 968,719,412.92
Total assets 5,054,109,796.39 131,265,061.01 516,005,766.66 2,436,874,116.96 3,264,506,507.10
Total liabilities 2,535,301,461.58 36,053,002.87 47,888,034.75 1,407,912,308.98 1,211,330,190.22
2. Other events
Nil
XIV. Note to main items of financial statements of the Parent Company
1. Account receivable
(1) Classification of accounts receivable
30 June 2018
Bad debt
Category
Book
Book Balance provision
value
Proportio Amo Proportio
Amount
n (%) unt n (%)
- 120 -
Account receivable with individual major amount and withdrawal bad debt
- - - - -
provision independently
Account receivable with bad debt provision accrual based on similar 136,717,3 136,717,3
100.00 - -
credit risk charateristics of a portfolio 45.45 45.45
Account receivable with individual minor amount but withdrawal bad debt
- - - - -
provision independently
136,717,3 136,717,3
Total 100.00 - -
45.45 45.45
(Continued)
Amount at year-begin
Bad debt
Category
Book
Book Balance provision
value
Proportio Amo Proportio
Amount
n (%) unt n (%)
Account receivable with individual major amount and withdrawal bad debt
- - - - -
provision independently
Account receivable with bad debt provision accrual based on similar 17,599,7 17,599,7
100.00 - -
credit risk charateristics of a portfolio 43.80 43.80
Account receivable with individual minor amount but withdrawal bad debt
- - - - -
provision independently
17,599,7 17,599,7
Total 100.00 - -
43.80 43.80
(2) Age analysis of account receivable
30 June 2018 Amount at year-begin
Age
Amount Proportion (%) Amount Proportion (%)
Within 1year 136,714,456.45 100.00 17,596,854.80 99.98
1 to 2years - - - -
2 to 3years - - - -
Over 3 years 2,889.00 0.00 2,889.00 0.02
Total 136,717,345.45 100.00 17,599,743.80 100.00
(3) Bad debt provision withdrawal ,collected or switch back in the period.
(4) No account receivable verified actually in the period.
(5) There are no account receivable of the shareholders who hold over 5 % (5% included) voting
rights in report period.
(6) Top five account receivables at period-end balance listed by arrears party
The total amount of the Company’s top 5 year end balance of receivables in this year collected by debtors
is 136,717,345.45 Yuan, accounting for 100% of the total amount of year end balance of receivables; the
total amount of year end balance of the corresponding provision for bad debts is 0.00 Yuan.
2. Other account receivable
(1) Other account receivable classified
30 June 2018
Category
Book Balance Bad debt provision Book
- 121 -
Proporti Proporti value
Amount on (%) Amount on (%)
Other account receivable with individual major amount and withdrawal bad 16,781,66 16,781,6
1.32 100.00 -
debt provision independently 6.46 66.46
Other account receivable with bad debt provision accrual based on 1,243,346, 1,243,346,
97.79 - -
similar credit risk charateristics of a portfolio 127.79 127.79
Other account receivable with individual minor amount but withdrawal bad 11,352,53 10,547,9 804,561.8
0.89 92.91
debt provision independently 8.87 76.98 9
1,271,480, 27,329,6 1,244,150,
Total 100.00
333.12 43.44 689.68
(Continued)
Amount at year-begin
Category Book Balance Bad debt provision Book
Proportio Proportio value
Amount n (%) Amount n (%)
Other account receivable with individual major amount and withdrawal bad 16,781,6 16,781,6
1.78 100.00 -
debt provision independently 66.46 66.46
Other account receivable with bad debt provision accrual based on 912,842, 912,842,
97.01 - -
similar credit risk charateristics of a portfolio 428.58 428.58
Other account receivable with individual minor amount but withdrawal bad 11,352,5 10,547,9 804,561.
1.21 92.91
38.87 76.98 89
debt provision independently
940,976, 27,329,6 913,646,
Total 100.00
633.91 43.44 990.47
① Other account receivable with individual major amount and withdrawal bad debt provision
independently
Accruing
Other account receivable Book value Bad debt provision Accrual reason
proportion (%)
Huiyang Kangtai Industrial Company 14,311,626.70 14,311,626.70 100.00 Un-collectible
Individual income tax 2,470,039.76 2,470,039.76 100.00 Un-collectible
Total 16,781,666.46 16,781,666.46 100.00
② Other account receivable with individual minor amount but withdrawal bad debt provision
independently
Accruing proportion
Other account receivable Book balance Bad debt provision
(%)
Dormitory amount receivable 2,083,698.16 1,736,004.16 83.31
Deposit receivable 1,769,842.84 1,312,974.95 74.19
Personal account receivable 7,498,997.87 7,498,997.87 100.00
Total 11,352,538.87 10,547,976.98 92.91
(2) Bad debt provision accrual, collected or switch-back in the period
(3) No other accounts receivable that had actually written off in the period
(4) Other account receivable classified according to age:
- 122 -
30 June 2018 1 January 2017
Age
Amount Proportion (%) Amount Proportion (%)
Within 1year 645,798,750.24 50.79 294,822,751.50 31.33
1 to 2years 134,777,480.57 10.60 224,125,985.68 23.82
2 to 3years 117,019,897.15 9.21 67,673,287.81 7.19
Over 3 years 373,884,205.16 29.40 354,354,608.92 37.66
Total 1,271,480,333.12 100.00 940,976,633.91 100.00
(5) Receivable from related parties
proportion in
total other
Name of the company Relationship with the Company Amount Year
account
receivable (%)
Zhongshan Power Company Subsidiary 723,035,163.94 Within 1year to Over 3 years 56.87
Weimei Power Company Subsidiary 503,565,940.68 Within 1year to Over 3 years 39.60
Environment Protection Company Subsidiary 12,709,842.10 1 year 1.00
Singapore company Subsidiary 1,477,071.99 Over 3 years 0.12
Engineering Company Subsidiary 954,698.92 Within 1year 0.08
Total 1,241,742,717.63 97.66
(6) Top 5 other account receivables at period-end listed by arrears party
proportion
in total
Balance of
other
Name of the company Relationship with the Company Amount Year bad debts
account
provision
receivable
(%)
Zhongshan Power Company Related party 723,035,163.94 1-3 years 56.87
Weimei Power Company Related party 503,565,940.68 1-3 years 39.60
Huiyang Kangtai Industrial Company Non-related party 14,311,626.70 Over 3 years 1.13 14,311,626.70
Environment Protection Company Related party 12,709,842.10 Within 1year 1.00
Dormitory receivable Non-related party 2,083,698.16 Over 3 years 0.16 1,736,004.16
Total 1,255,706,271.58 98.76 16,047,630.86
3. Long-term investment
(1) Category of long-term equity investment
30 June 2018 Balance at year-begin
Item Impairme Impairme
Book Balance nt Book value Book Balance nt Book value
provision provision
691,982,849. 691,982,849. 691,982,849. 691,982,849.
Investment to subsidiary - -
76 76 76 76
Investment to joint venture and affiliate
- - - - - -
enterprise
- 123 -
691,982,849. 691,982,849. 691,982,849. 691,982,849.
Total - -
76 76 76 76
(2) Investment to subsidiary
Impairment Impairment
Balance at Increased in Decreased in provision provision
Investee company 30 June 2018
year-begin
the Year the Year accrual in the Year-end
Year balance
Shenzhen Server 26,650,000.00 - - 26,650,000.00 - -
New Power
71,270,000.00 - - 71,270,000.00 - -
Company
Zhongshan Power
410,740,000.00 - - 410,740,000.00 - -
Company
Engineering
6,000,000.00 - - 6,000,000.00 - -
Company
Weimei Power
115,319,049.76 - - 115,319,049.76 - -
Company
Singapore
6,703,800.00 - - 6,703,800.00 - -
company
Environment
Protection 55,300,000.00 - - 55,300,000.00 - -
Company
Total 691,982,849.76 - - 691,982,849.76 - -
4. Operation revenue/operation cost
Jan. – Jun. 2018 Jan. – Jun. 2017
Item
Revenue Cost Revenue Cost
Main business 337,240,114.89 361,394,602.84 316,769,674.55 351,127,940.47
Other business 69,606,326.95 11,835,458.28 11,630,884.94 2,293,227.75
Total 406,846,441.84 373,230,061.12 328,400,559.49 353,421,168.22
5. Supplement of cash flow statement
Supplement information Jan. – Jun. 2018 Jan. – Jun. 2017
1. Net profit adjusted as cash flow from operation activities:
Net profit 16,456,446.41 -32,975,152.39
Add: Assets for impairment - -480,710.97
Depreciation of fixed assets 6,633,429.02 5,591,404.56
Amortization of intangible assets 605,782.51 665,244.42
- 124 -
Amortization of long-term expenses to be amortized - -
Loss from disposal of fixed assets, intangible assets and other
- -
long-term assets
Abandonment loss from fixed assets 759,974.53 159,602.00
Financial expenses (income) 1,326,830.82 16,331,788.60
Decrease of inventory (increased) -8,960,695.04 2,307,025.70
Decrease of operational receivable (increased) -356,617,560.94 58,970,055.19
Increase of operational payable (decreased) 40,781,230.96 -280,198,080.80
Other - -
Net cash flow from operation activities -299,014,561.73 -229,628,823.69
2. Major investment and financing activities not involved with cash
income and expenses:
Conversion of debt into capital - -
Convertible bonds due within one year - -
Fixed assets under finance leases - -
3. Net changes of cash and cash equivalent:
Balance of cash and cash equivalent at period-end 513,661,278.18 195,020,156.38
Less: period-beginning balance of cash and cash equivalent 148,223,551.05 1,119,323,850.36
Net increase of cash and cash equivalent 365,437,727.13 -924,303,693.98
XV. Supplementary information
1. Statement of non-recurring gains/losses
Item Jan. – Jun. 2018 Jan. – Jun. 2017
Gains/losses from the disposal of non-current asset -849,018.73 -203,276.08
Governmental subsidy calculated into current gains and losses, with
closely related with the normal business of the Company, excluding the
2,122,867.64 9,839,892.03
fixed-amount or fixed-proportion governmental subsidy according to the
unified national standard)
Gain/loss of debt reorganization - -
Switch-back of the impairment reserves of receivables that has
- -
impairment test independently
Natural gas import VAT refund - -
Other non-operating income and expenditure except for the
-5,225.00 1,961,448.64
aforementioned items
Subtotal 1,268,623.91 11,598,064.59
Impact on income tax -113,500.37 -246,556.08
Impact on minority shareholders’ equity (post-tax) -47,401.10 -1,737,656.57
Total 1,107,722.44 9,613,851.94
2. ROE and EPS
EPS
Weighted average ROE
Profit in the Period
(%) Basic EPS Diluted EPS
- 125 -
Net profit attributable to shareholders of the listed company 1.52% 0.05 0.05
Net profit attributable to shareholders of the listed company
1.46% 0.05 0.05
after deducting non-recurring gains and losses
- 126 -
