深圳南山热电股份有限公司 2020 年半年度财务报告
Shenzhen Nanshan Power Co., Ltd
Financial Report
2020-06-30
I. Auditing report
The financial report of the semi-annual report has not been audited.
II. Financial Statement
Statement in Financial Notes are carried in RMB/CNY
1. Consolidated balance sheet
Shenzhen Nanshan Power Co., Ltd.
2020-06-30
In RMB
Item 2020-6-30 2019-12-31
Current assets:
Monetary funds 1,084,903,966.81 773,209,854.84
Settlement provisions
Capital lent
Tradable financial assets
Derivative financial assets
Note receivable 2,900,000.00
Account receivable 132,037,467.25 178,150,580.32
Receivable financing
Accounts paid in advance 32,848,698.89 70,005,681.50
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 80,837,116.58 32,321,826.94
Including: Interest receivable
Dividend receivable
Buying back the sale of financial
assets
Inventories 108,553,898.22 124,686,443.61
Contractual assets
Assets held for sale
Non-current asset due within one
year
Other current assets 491,760,334.29 445,236,731.33
Total current assets 1,933,841,482.04 1,623,611,118.54
Non-current assets:
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深圳南山热电股份有限公司 2020 年半年度财务报告
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 14,375,580.60 14,619,203.03
Investment in other equity
60,615,000.00 60,615,000.00
instrument
Other non-current financial assets
Investment real estate 2,303,258.20 2,401,327.00
Fixed assets 954,992,268.00 1,381,675,872.68
Construction in progress 60,831,928.29 66,474,630.23
Productive biological asset
Oil and gas asset
Right-of-use assets
Intangible assets 21,334,118.82 43,602,166.44
Expense on Research and
Development
Goodwill
Long-term expenses to be
1,048,199.78 1,174,171.16
apportioned
Deferred income tax asset 2,206,049.69 2,206,049.69
Other non-current asset 22,882,181.78
Total non-current asset 1,117,706,403.38 1,595,650,602.01
Total assets 3,051,547,885.42 3,219,261,720.55
Current liabilities:
Short-term loans 755,480,134.11 881,075,378.48
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable
Account payable 13,361,192.95 19,871,102.41
Accounts received in advance
Contractual liability
Selling financial asset of
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Wage payable 41,045,198.56 55,208,432.53
Taxes payable 11,824,882.40 21,769,273.77
Other account payable 34,163,258.96 43,691,472.06
Including: Interest payable
Dividend payable
Commission charge and
commission payable
Reinsurance payable
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深圳南山热电股份有限公司 2020 年半年度财务报告
Liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 855,874,666.98 1,021,615,659.25
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: Preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long-term wages payable
Accrual liability 26,646,056.28 26,646,056.28
Deferred income 96,957,757.04 108,507,683.52
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 123,603,813.32 135,153,739.80
Total liabilities 979,478,480.30 1,156,769,399.05
Owner’s equity:
Share capital 602,762,596.00 602,762,596.00
Other equity instrument
Including: Preferred stock
Perpetual capital
securities
Capital public reserve 362,770,922.10 362,770,922.10
Less: Inventory shares
Other comprehensive income -2,500,000.00 -2,500,000.00
Reasonable reserve
Surplus public reserve 332,908,397.60 332,908,397.60
Provision of general risk
Retained profit 746,816,139.04 706,830,892.54
Total owner’ s equity attributable to
2,042,758,054.74 2,002,772,808.24
parent company
Minority interests 29,311,350.38 59,719,513.26
Total owner’ s equity 2,072,069,405.12 2,062,492,321.50
Total liabilities and owner’ s equity 3,051,547,885.42 3,219,261,720.55
Legal Representative: Li Xinwei
General Manager: Chen Yuhui
CFO: Dai Xiji
Person in charge of financial dept.: Wang Yi
Tabulator: Liu Yan
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深圳南山热电股份有限公司 2020 年半年度财务报告
2. Balance Sheet of Parent Company
In RMB
Item 2020-6-30 2019-12-31
Current assets:
Monetary funds 1,012,488,905.86 632,948,706.11
Trading financial assets
Derivative financial assets
Note receivable
Account receivable 61,629,518.43 31,824,693.69
Receivable financing
Accounts paid in advance 27,966,084.58 46,152,700.57
Other account receivable 660,835,522.34 873,861,071.55
Including: Interest receivable
Dividend receivable
Inventories 97,843,620.07 101,728,367.43
Contractual assets
Assets held for sale
Non-current assets maturing within
one year
Other current assets 485,147,244.31 438,613,774.49
Total current assets 2,345,910,895.59 2,125,129,313.84
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 228,918,765.00 303,341,165.00
Investment in other equity
60,615,000.00 60,615,000.00
instrument
Other non-current financial assets
Investment real estate
Fixed assets 315,117,782.13 321,395,526.04
Construction in progress 2,355,233.61 1,949,450.23
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 229,435.21 404,104.06
Research and development costs
Goodwill
Long-term deferred expenses 709,967.63 790,841.39
Deferred income tax assets
Other non-current assets
Total non-current assets 607,946,183.58 688,496,086.72
Total assets 2,953,857,079.17 2,813,625,400.56
Current liabilities
Short-term borrowings 755,480,134.11 580,640,114.59
Trading financial liability
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深圳南山热电股份有限公司 2020 年半年度财务报告
Derivative financial liability
Notes payable
Account payable 1,756,794.04 864,016.74
Accounts received in advance
Contractual liability
Wage payable 26,769,914.84 33,840,544.53
Taxes payable 1,279,402.89 718,630.17
Other accounts payable 193,871,721.75 203,332,331.14
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 979,157,967.63 819,395,637.17
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred stock
Perpetual capital
securities
Lease liability
Long-term account payable
Long term employee compensation
payable
Accrued liabilities
Deferred income 56,533,398.56 58,261,356.20
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 56,533,398.56 58,261,356.20
Total liabilities 1,035,691,366.19 877,656,993.37
Owners’ equity:
Share capital 602,762,596.00 602,762,596.00
Other equity instrument
Including: preferred stock
Perpetual capital
securities
Capital public reserve 289,963,039.70 289,963,039.70
Less: Inventory shares
Other comprehensive income
Special reserve
Surplus reserve 332,908,397.60 332,908,397.60
Retained profit 692,531,679.68 710,334,373.89
Total owner’s equity 1,918,165,712.98 1,935,968,407.19
Total liabilities and owner’s equity 2,953,857,079.17 2,813,625,400.56
Legal Representative: Li Xinwei
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深圳南山热电股份有限公司 2020 年半年度财务报告
General Manager: Chen Yuhui
CFO: Dai Xiji
Person in charge of financial dept.: Wang Yi
Tabulator: Liu Yan
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深圳南山热电股份有限公司 2020 年半年度财务报告
3. Consolidated Profit Statement
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Total operating income 518,150,606.21 408,124,616.38
Including: Operating income 518,150,606.21 408,124,616.38
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 508,157,542.84 443,959,972.56
Including: Operating cost 453,109,436.14 382,997,137.69
Interest expense
Commission charge and
commission expense
Cash surrender value
Net amount of expense of
compensation
Net amount of withdrawal of
insurance contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 4,419,108.69 2,825,433.43
Sales expense 2,527,403.66 2,566,269.52
Administrative expense 43,036,872.15 44,931,864.50
R&D expense
Financial expense 5,064,722.20 10,639,267.42
Including: Interest
18,187,759.13 23,542,971.21
expenses
Interest income -13,142,285.32 -13,189,605.67
Add: other income 8,755,536.55 4,962,155.46
Investment income (Loss is
33,291,259.12 -677,552.37
listed with “-”)
Including: Investment income
-243,622.43 -677,552.37
on affiliated company and joint venture
The termination of income
recognition for financial assets measured
by amortized cost(Loss is listed with “-”)
Exchange income (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Income from change of fair
value (Loss is listed with “-”)
Loss of credit impairment
(Loss is listed with “-”)
Losses of devaluation of asset
(Loss is listed with “-”)
Income from assets disposal
828,535.66 -417,926.32
(Loss is listed with “-”)
III. Operating profit (Loss is listed with
52,868,394.70 -31,968,679.41
“-”)
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深圳南山热电股份有限公司 2020 年半年度财务报告
Add: Non-operating income 4,753.84 103,166.50
Less: Non-operating expense 11,110.00 46,124.97
IV. Total profit (Loss is listed with “-”) 52,862,038.54 -31,911,637.88
Less: Income tax expense 610,366.52 1,157,865.76
V. Net profit (Net loss is listed with “-”) 52,251,672.02 -33,069,503.64
(i) Classify by business continuity
1.continuous operating net profit
52,251,672.02 -33,069,503.64
(net loss listed with ‘-”)
2.termination of net profit (net loss
listed with ‘-”)
(ii) Classify by ownership
1.Net profit attributable to owner’s
52,040,498.42 -25,283,190.82
of parent company
2.Minority shareholders’ gains and
211,173.60 -7,786,312.82
losses
VI. Net after-tax of other comprehensive
income
Net after-tax of other comprehensive
income attributable to owners of parent
company
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(ii) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial assets
re-classify to other comprehensive
income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging reserve
6.Translation differences
arising on translation of foreign currency
financial statements
7.Other
Net after-tax of other comprehensive
income attributable to minority
shareholders
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深圳南山热电股份有限公司 2020 年半年度财务报告
VII. Total comprehensive income 52,251,672.02 -33,069,503.64
Total comprehensive income
52,040,498.42 -25,283,190.82
attributable to owners of parent Company
Total comprehensive income
211,173.60 -7,786,312.82
attributable to minority shareholders
VIII. Earnings per share:
(i) Basic earnings per share 0.09 -0.04
(ii) Diluted earnings per share 0.09 -0.04
Legal Representative: Li Xinwei
General Manager: Chen Yuhui
CFO: Dai Xiji
Person in charge of financial dept.: Wang Yi
Tabulator: Liu Yan
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深圳南山热电股份有限公司 2020 年半年度财务报告
4. Profit Statement of Parent Company
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Operating income 145,767,015.34 165,514,051.23
Less: Operating cost 137,936,919.09 172,328,135.53
Taxes and surcharge 1,043,521.78 1,087,030.23
Sales expenses
Administration expenses 20,573,683.41 24,673,677.93
R&D expenses
Financial expenses -15,583,586.02 -14,339,507.18
Including: interest
14,003,693.17 22,030,984.10
expenses
Interest income -29,739,688.14 -36,594,234.59
Add: other income 6,061,054.97 1,973,036.55
Investment income (Loss is
-14,432,400.00
listed with “-”)
Including: Investment income
on affiliated Company and joint venture
The termination of
income recognition for financial assets
measured by amortized cost (Loss is
listed with “-”)
Net exposure hedging income
(Loss is listed with “-”)
Changing income of fair
value (Loss is listed with “-”)
Loss of credit impairment
(Loss is listed with “-”)
Losses of devaluation of asset
(Loss is listed with “-”)
Income on disposal of assets
828,535.66 -231,373.37
(Loss is listed with “-”)
II. Operating profit (Loss is listed with
-5,746,332.29 -16,493,622.10
“-”)
Add: Non-operating income
Less: Non-operating expense 1,110.00
III. Total Profit (Loss is listed with “-”) -5,747,442.29 -16,493,622.10
Less: Income tax -2,246,824.86
IV. Net profit (Net loss is listed with
-5,747,442.29 -14,246,797.24
“-”)
(i)continuous operating net profit
-5,747,442.29 -14,246,797.24
(net loss listed with ‘-”)
(ii) termination of net profit (net
loss listed with ‘-”)
V. Net after-tax of other comprehensive
income
(I) Other comprehensive income
items which will not be reclassified
subsequently to profit of loss
1.Changes of the defined
benefit plans that re-measured
2.Other comprehensive
income under equity method that cannot
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深圳南山热电股份有限公司 2020 年半年度财务报告
be transfer to gain/loss
3.Change of fair value of
investment in other equity instrument
4.Fair value change of
enterprise's credit risk
5. Other
(II) Other comprehensive income
items which will be reclassified
subsequently to profit or loss
1.Other comprehensive
income under equity method that can
transfer to gain/loss
2.Change of fair value of
other debt investment
3.Amount of financial
assets re-classify to other
comprehensive income
4.Credit impairment
provision for other debt investment
5.Cash flow hedging
reserve
6.Translation differences
arising on translation of foreign
currency financial statements
7.Other
VI. Total comprehensive income -5,747,442.29 -14,246,797.24
VII. Earnings per share:
(i) Basic earnings per share
(ii) Diluted earnings per share
Legal Representative: Li Xinwei
General Manager: Chen Yuhui
CFO: Dai Xiji
Person in charge of financial dept.: Wang Yi
Tabulator: Liu Yan
11
深圳南山热电股份有限公司 2020 年半年度财务报告
5. Consolidated Cash Flow Statement
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 546,650,431.87 428,898,326.58
services
Net increase of customer deposit
and interbank deposit
Net increase of loan from central
bank
Cash received from original
insurance contract fee
Net cash received from reinsurance
business
Net increase of insured savings
and investment
Cash received from interest,
commission charge and commission
Net increase of capital borrowed
Net increase of returned business
capital
Net cash received by agents in sale
and purchase of securities
Write-back of tax received 825,437.15 1,346,224.12
Other cash received concerning
22,506,294.89 70,033,512.82
operating activities
Subtotal of cash inflow arising from
569,982,163.91 500,278,063.52
operating activities
Cash paid for purchasing
commodities and receiving labor 375,599,637.22 333,819,040.13
service
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
contract compensation
Net increase of capital lent
Cash paid for interest, commission
charge and commission
Cash paid for bonus of guarantee
slip
Cash paid to/for staff and workers 75,085,663.24 66,444,597.80
Taxes paid 28,204,829.24 17,292,868.12
Other cash paid concerning
21,155,472.75 26,504,180.58
operating activities
Subtotal of cash outflow arising from
500,045,602.45 444,060,686.63
operating activities
Net cash flows arising from operating
69,936,561.46 56,217,376.89
activities
II. Cash flows arising from investing
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深圳南山热电股份有限公司 2020 年半年度财务报告
activities:
Cash received from recovering
investment
Cash received from investment
254,147.93
income
Net cash received from disposal of
fixed, intangible and other long-term 1,989,560.00
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
800,000.00
investing activities
Subtotal of cash inflow from investing
1,054,147.93 1,989,560.00
activities
Cash paid for purchasing fixed,
5,447,277.81 22,830,724.69
intangible and other long-term assets
Cash paid for investment 53,434,321.12
Net increase of mortgaged loans
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
12,577,163.02
investing activities
Subtotal of cash outflow from investing
71,458,761.95 22,830,724.69
activities
Net cash flows arising from investing
-70,404,614.02 -20,841,164.69
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
investment
Including: Cash received from
absorbing minority shareholders’
investment by subsidiaries
Cash received from loans 844,233,285.00 730,000,000.00
Other cash received concerning
170,000,000.00 7,303,338.86
financing activities
Subtotal of cash inflow from financing
1,014,233,285.00 737,303,338.86
activities
Cash paid for settling debts 670,000,000.00 634,000,000.00
Cash paid for dividend and profit
30,452,445.36 23,755,459.28
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by
subsidiaries
Other cash paid concerning
financing activities
Subtotal of cash outflow from financing
700,452,445.36 657,755,459.28
activities
Net cash flows arising from financing
313,780,839.64 79,547,879.58
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 101,178.77 3,136.95
exchange rate
V. Net increase of cash and cash
313,413,965.85 114,927,228.73
equivalents
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深圳南山热电股份有限公司 2020 年半年度财务报告
Add: Balance of cash and cash
771,490,000.96 914,956,611.70
equivalents at the period -begin
VI. Balance of cash and cash
1,084,903,966.81 1,029,883,840.43
equivalents at the period -end
Legal Representative: Li Xinwei
General Manager: Chen Yuhui
CFO: Dai Xiji
Person in charge of financial dept.: Wang Yi
Tabulator: Liu Yan
14
深圳南山热电股份有限公司 2020 年半年度财务报告
6. Cash Flow Statement of Parent Company
In RMB
Item 2020 semi-annual 2019 semi-annual
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 175,122,223.90 179,341,203.60
services
Write-back of tax received 171,207.01
Other cash received concerning
255,646,269.06 472,584,897.62
operating activities
Subtotal of cash inflow arising from
430,939,699.97 651,926,101.22
operating activities
Cash paid for purchasing
commodities and receiving labor 117,118,694.51 166,269,024.94
service
Cash paid to/for staff and workers 47,301,346.15 37,380,527.03
Taxes paid 222,887.49 9,889,753.49
Other cash paid concerning
275,229,334.87 180,626,305.78
operating activities
Subtotal of cash outflow arising from
439,872,263.02 394,165,611.24
operating activities
Net cash flows arising from operating
-8,932,563.05 257,760,489.98
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
59,990,000.00
investment
Cash received from investment
254,147.93
income
Net cash received from disposal of
fixed, intangible and other long-term 1,794,800.00
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
230,318,617.98
investing activities
Subtotal of cash inflow from investing
290,562,765.91 1,794,800.00
activities
Cash paid for purchasing fixed,
1,915,256.43 15,789,275.99
intangible and other long-term assets
Cash paid for investment 53,434,321.12
Net cash received from
subsidiaries and other units obtained
Other cash paid concerning
investing activities
Subtotal of cash outflow from investing
55,349,577.55 15,789,275.99
activities
Net cash flows arising from investing
235,213,188.36 -13,994,475.99
activities
III. Cash flows arising from financing
activities
Cash received from absorbing
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深圳南山热电股份有限公司 2020 年半年度财务报告
investment
Cash received from loans 544,233,285.00 430,000,000.00
Other cash received concerning
5,000,000.00
financing activities
Subtotal of cash inflow from financing
549,233,285.00 430,000,000.00
activities
Cash paid for settling debts 370,000,000.00 530,000,000.00
Cash paid for dividend and profit
25,373,959.23 20,895,394.22
distributing or interest paying
Other cash paid concerning
600,600.00
financing activities
Subtotal of cash outflow from financing
395,974,559.23 550,895,394.22
activities
Net cash flows arising from financing
153,258,725.77 -120,895,394.22
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 848.67 391.81
exchange rate
V. Net increase of cash and cash
379,540,199.75 122,871,011.58
equivalents
Add: Balance of cash and cash
632,948,706.11 766,041,463.01
equivalents at the period -begin
VI. Balance of cash and cash
1,012,488,905.86 888,912,474.59
equivalents at the period -end
Legal Representative: Li Xinwei
General Manager: Chen Yuhui
CFO: Dai Xiji
Person in charge of financial dept.: Wang Yi
Tabulator: Liu Yan
16
深圳南山热电股份有限公司 2020 年半年度财务报告
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
2020 semi-annual
Owners’ equity attributable to the parent Company
Other
equity instrument Other
Minori Total
Perpe Less: compr Provisi
Item Share Reaso Surplu Retain ty owners
tual Capital Invent ehensi on of Subtot
capita Prefe nable s ed Other interes ’
capit reserve ory ve genera al
l rred Other reserve reserve profit ts equity
al shares incom l risk
stock
secur e
ities
I. Balance at the 602,7 362,77 332,90 706,83 2,002, 59,719 2,062,
-2,500,
end of the last 62,59 0,922.
000.00
8,397. 0,892. 772,80 ,513.2 492,32
year 6.00 10 60 54 8.24 6 1.50
Add:
Changes of
accounting
policy
Error
correction of the
last period
Enterprise
combine under
the same
control
Other
II. Balance at 602,7 362,77 332,90 706,83 2,002, 59,719 2,062,
-2,500,
the beginning of 62,59 0,922.
000.00
8,397. 0,892. 772,80 ,513.2 492,32
this year 6.00 10 60 54 8.24 6 1.50
III. Increase/
Decrease in this 39,985 39,985 -30,40
9,577,
year (Decrease ,246.5 ,246.5 8,162.
083.62
is listed with 0 0 88
“-”)
(i) Total 52,040 52,040 52,251
211,17
comprehensive ,498.4 ,498.4 ,672.0
3.60
income 2 2 2
(ii) Owners’
-30,61 -30,61
devoted and
9,336. 9,336.
decreased 48 48
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
17
深圳南山热电股份有限公司 2020 年半年度财务报告
3. Amount
reckoned into
owners equity
with
share-based
payment
-30,61 -30,61
4. Other 9,336. 9,336.
48 48
-12,05 -12,05 -12,05
(III) Profit
5,251. 5,251. 5,251.
distribution 92 92 92
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution -12,05 -12,05 -12,05
for owners (or 5,251. 5,251. 5,251.
shareholders) 92 92 92
4. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
18
深圳南山热电股份有限公司 2020 年半年度财务报告
period
2. Usage in the
report period
(VI)Others
IV. Balance at 602,7 362,77 332,90 746,81 2,042, 29,311 2,072,
-2,500,
the end of the 62,59 0,922.
000.00
8,397. 6,139. 758,05 ,350.3 069,40
report period 6.00 10 60 04 4.74 8 5.12
Last Period
In RMB
2019 semi-annual
Owners’ equity attributable to the parent Company
Other
equity instrument Other
Minorit
Perp Less: compr Provisi Total
Item Share Reaso Surplu Retain y
etual Capital Invent ehensi on of Subtot owners’
capita Prefe nable s ed Other interest
capit reserve ory ve genera al equity
l rred Other reserve reserve profit s
al shares incom l risk
stock
secur e
ities
I. Balance at 602,7 362,77 332,90 679,42 1,977, 2,036,7
58,927,
the end of the 62,59 0,922. 8,397. 9,935. 871,85
527.37
99,378.
last year 6.00 10 60 81 1.51 88
Add:
Changes of
accounting
policy
Error
correction of
the last period
Enterprise
combine
under the
same control
Other
II. Balance at 602,7 362,77 332,90 679,42 1,977, 2,036,7
58,927,
the beginning 62,59 0,922. 8,397. 9,935. 871,85
527.37
99,378.
of this year 6.00 10 60 81 1.51 88
III. Increase/
Decrease in this -25,28 -25,28
-7,786, -33,069
year (Decrease 3,190. 3,190.
312.82 ,503.64
is listed with 82 82
“-”)
(i) Total -25,28 -25,28
-7,786, -33,069
comprehensive 3,190. 3,190.
312.82 ,503.64
income 82 82
(ii) Owners’
devoted and
decreased
capital
1.Common
shares invested
19
深圳南山热电股份有限公司 2020 年半年度财务报告
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or
shareholders)
4. Other
(IV) Carrying
forward
internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings
from the
defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
20
深圳南山热电股份有限公司 2020 年半年度财务报告
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at 602,7 362,77 332,90 654,14 1,952, 2,003,7
51,141,
the end of the 62,59 0,922. 8,397. 6,744. 588,66
214.55
29,875.
report period 6.00 10 60 99 0.69 24
Legal Representative: Li Xinwei
General Manager: Chen Yuhui
CFO: Dai Xiji
Person in charge of financial dept.: Wang Yi
Tabulator: Liu Yan
21
深圳南山热电股份有限公司 2020 年半年度财务报告
8. Statement of Changes in Owners’ Equity (Parent Company)
This Period
In RMB
2020 semi-annual
Other equity instrument
Perpet Other
Capital Less: Reasona Total
Item Share Preferr ual compreh Surplus Retaine
public Inventor ble Other owners’
capital ed capital Other ensive reserve d profit
reserve y shares reserve equity
stock securiti income
es
I. Balance at the 602,76 710,33
289,963, 332,908, 1,935,968,
end of the last 2,596.0 039.70 397.60
4,373.8
407.19
year 0 9
Add:
Changes of
accounting
policy
Error
correction of the
last period
Other
II. Balance at the 602,76 710,33
289,963, 332,908, 1,935,968,
beginning of this 2,596.0 039.70 397.60
4,373.8
407.19
year 0 9
III. Increase/
Decrease in this -17,802 -17,802,69
year (Decrease is ,694.21 4.21
listed with “-”)
(i) Total
-5,747, -5,747,442
comprehensive 442.29 .29
income
(ii) Owners’
devoted and
decreased capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with share-based
payment
4. Other
(III) Profit -12,055 -12,055,25
distribution ,251.92 1.92
1. Withdrawal of
22
深圳南山热电股份有限公司 2020 年半年度财务报告
surplus reserves
2. Distribution
-12,055 -12,055,25
for owners (or ,251.92 1.92
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with surplus
reserve
4．Carry-over
retained earnings
from the defined
benefit plans
5．Carry-over
retained earnings
from other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal in
the report period
2. Usage in the
report period
(VI)Others
IV. Balance at 602,76 692,53
289,963, 332,908, 1,918,165,
the end of the 2,596.0 039.70 397.60
1,679.6
712.98
report period 0 8
Last period
In RMB
2019 semi-annual
Other equity
instrument
Other
Perpet Capital Less: Total
Item Share compre Reasonab Surplus Retained
Preferr ual public Inventor Other owners’
capital hensive le reserve reserve profit
ed capital Other reserve y shares equity
income
stock securit
ies
I. Balance at the 602,76 289,963 332,908 709,581,3 1,935,215,3
end of the last 2,596. ,039.70 ,397.60 50.64 83.94
23
深圳南山热电股份有限公司 2020 年半年度财务报告
year 00
Add:
Changes of
accounting
policy
Error
correction of
the last period
Other
II. Balance at 602,76
289,963 332,908 709,581,3 1,935,215,3
the beginning 2,596. ,039.70 ,397.60 50.64 83.94
of this year 00
III. Increase/
Decrease in this
-14,246,7 -14,246,797
year (Decrease 97.24 .24
is listed with
“-”)
(i) Total
-14,246,7 -14,246,797
comprehensive 97.24 .24
income
(ii) Owners’
devoted and
decreased
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with
share-based
payment
4. Other
(III) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Distribution
for owners (or
shareholders)
3. Other
(IV) Carrying
forward internal
owners’ equity
1. Capital
24
深圳南山热电股份有限公司 2020 年半年度财务报告
reserves
conversed to
capital (share
capital)
2. Surplus
reserves
conversed to
capital (share
capital)
3. Remedying
loss with
surplus reserve
4．Carry-over
retained
earnings from
the defined
benefit plans
5．Carry-over
retained
earnings from
other
comprehensive
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI)Others
IV. Balance at 602,76
289,963 332,908 695,334,5 1,920,968,5
the end of the 2,596. ,039.70 ,397.60 53.40 86.70
report period 00
Legal Representative: Li Xinwei
General Manager: Chen Yuhui
CFO: Dai Xiji
Person in charge of financial dept.: Wang Yi
Tabulator: Liu Yan
25
深圳南山热电股份有限公司 2020 年半年度财务报告
Shenzhen Nanshan Power Co., Ltd.
Notes to financial statement of Semi-Annual 2020
I. Company Profile
(1) Profile
Shenzhen Nanshan Power Co., Ltd (hereinafter, the “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.179 issued by Shenzhen Securities Regulatory Office,
on 3 January 1994, the Company offered 40,000,000 RMB common shares and 37,000,000 domestically listed
foreign shares in and out of China. And the RMB common shares (A-stock) and domestically listed foreign listed
shares (B-stock) were listed in Shenzhen Stock 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 has approved for report by the Board on 12 August 2020.
(2) Scope of consolidate financial statement
Subsidiary included in the consolidate financial statement of the Company up to 30 June 2020 are as:
Subsidiary
Shen Nan Dian (Zhongshan) Electric Power Co., Ltd.（“Zhongshan Electric Power”）
Shenzhen Shennandian Turbine Engineering Technology Co., Ltd.（“Engineering Company”）
Shenzhen Shen Nan Dian Environment Protection Co., Ltd.（“Environment Protection Company”）
Shenzhen Server Petrochemical Supplying Co., Ltd（“Shenzhen Server”）
Shenzhen New Power Industrial Co., Ltd.（“New Power”）
Shen Nan Energy (Singapore) Co., Ltd.（“Singapore Company”）
Hong Kong Syndisome Co., Ltd.（“Syndisome ”）
Zhongshan Shen Nan Dian Storage Co., Ltd.（“Shen Storage”）
Scope of the consolidate financial statement and its changes found more in the VI. Change of Consolidate Scope
and VII. Equity in other entity carry in the Note
II. Preparation basis of Financial statement
(1) Preparation basis
26
深圳南山热电股份有限公司 2020 年半年度财务报告
The Company’s financial statements have been prepared based on the going concern and the actual transactions
and events. In accordance with the Accounting Standards for Business Enterprises- Basic Norms and every
specific accounting rules, the 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” of China Securities
Regulatory Commission.
(2)Going concern
The Company is capable of going concern for 12 months from the end of the reporting period, and there are no
major issues affecting the ability to go concern.
III. Major Accounting Policies and Estimation
The Company together with its subsidiaries is mainly engaged in businesses as production of power and heat,
power plant construction, fuel trading, engineering consulting and and sludge drying.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 (16) Fixed assets and the (25) Revenue
under Note III. For explanation on material accounting judgment and estimate issued by the management, please
refer to (32) Major accounting judgment and estimation under Note III.
(1) Statement on observation of Accounting Standard for Business Enterprises
The Financial Statements are up to requirements of Accounting Standards for Business Enterprises, and reflect the
financial status, operation outcomes and cash flows of the Company in reporting period in truthfulness and
completeness.
(2) Accounting period
Accounting period of the Company divide into annual and medium-term, and the medium-term is the reporting
period that shorter than one completed accounting year. The Company’s accounting year is Gregorian calendar
year, namely from 1st January to 31st December.
(3) Operating cycle
The operating cycle of the Company is 12 months.
(4) Book-keeping standard currency
Book-keeping standard of the Company is RMB(CNY)
(5) Accounting treatment on enterprise combine under the same control and under the
different control
Enterprise combination under the same control: The assets and liabilities obtained by the Company in enterprise
combination are measured at the book value of the consolidated financial statements of the ultimate controlling
27
深圳南山热电股份有限公司 2020 年半年度财务报告
party in accordance with the assets and liabilities of the combined party on the date of combination. 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 share capital
premium in capital reserve. If the share capital premium in capital reserve is not sufficient to absorb the difference,
any excess shall be adjusted against retained earnings.
Enterprise combinations not under the same control: The Company's assets paid and liabilities incurred or assumed
on the date of purchase as a consideration of enterprise combination are measured at fair value, and the difference
between the fair value and its book value is included in the current profit and loss. Where the cost of a business
combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference
is recognized as goodwill; where the cost of a business combination less than the acquirer’s interest in the fair
value of the acquiree’s identifiable net assets, reckoned into current gains/losses after double-check.
The intermediary fees, such as auditing, legal services, consultation and other directly relevant incurred in the
merger of enterprises shall be reckon into the current gains/losses when incurred; the transaction costs of issuing
equity securities for the purpose of enterprise combination should be charge-off.
(6) Preparation methods for consolidated statement
1.Consolidate scope
Scope of the consolidate financial statement is determined on a control basis, all subsidiaries (including the part of
the enterprise under control of the investee that can be divided) are included in the consolidated financial
statement.
2. Consolidate procedures
Based on the financial statements of itself and its subsidiaries, the Company compiles the consolidated financial
statements in line with other relevant information. The Company compiles consolidated financial statements,
considers the entire enterprise group as an accounting entity, and reflects the overall financial position, operating
results and cash flow of the enterprise group in accordance with the relevant accounting standards' recognition,
measurement and presentation requirements and in accordance with unified accounting policies.
The accounting policies and accounting periods adopted by all subsidiaries included in the consolidation scope of
the consolidated financial statements are consistent with the Company. If the accounting policies and accounting
periods adopted by the subsidiaries are inconsistent with the Company, when preparing the consolidated financial
statements, make necessary adjustments according to the accounting policies and accounting periods of the
Company. For a subsidiary acquired through a business combination not under the same control, its financial
statements are adjusted based on the fair value of the identifiable net assets at the acquisition date. For a subsidiary
acquired through a business combination under the same control, its financial statements are adjusted based on the
book value of its assets and liabilities (including the goodwill formed by the ultimate controlling party's acquisition
of the subsidiary) in the ultimate controlling party's financial statements.
The subsidiary's owner's equity, current net profit or loss and the share of current comprehensive income belonging
to minority shareholders are separately listed under the owner's equity item in the consolidated balance sheet,
under the net profit item in the consolidated income statement and under the total comprehensive income item. If
28
深圳南山热电股份有限公司 2020 年半年度财务报告
the current loss shared by the minority shareholders of a subsidiary exceeds the minority shareholder' share in the
owner's equity of the subsidiary at the beginning of the period, the balance shall offset against the minority
shareholders' equity.
(1) Increase subsidiaries or businesses
During the reporting period, if a subsidiary or business is added due to a business combination under the same
control, adjust the opening balance of the consolidated balance sheet; incorporate the income, expenses, and profits
of the subsidiary or business combination from the beginning of the current period to the end of the reporting
period into the consolidated income statement; incorporate the cash flows of the subsidiary or business
combination from the beginning of the current period to the end of the reporting period into the consolidated cash
flow statement, and adjust the relevant items of the comparative statement as if the consolidated reporting entity
had been existing since the time when the ultimate controlling party began controlling.
Where it is possible to exercise control over an investee under the same control due to additional investment, all
parties participating in the combination are deemed to have adjusted in their current state when the ultimate
controlling party commenced control. The equity investment held before the control of the combined party is
obtained, the relevant profit or loss and other comprehensive income that have been confirmed between the date of
acquisition of the original equity and the date on which the combining party and the combined party are under the
same control until the combining date, as well as other changes in net assets respectively write down the retained
earnings at the beginning of period or the current profits and losses in the comparative statements.
During the reporting period, if a subsidiary or business is added due to a business combination not under the same
control, the opening balance of the consolidated balance sheet period will not be adjusted; the income, expenses,
and profits of the subsidiary or business from the acquisition date to the end of the reporting period will be
included in the consolidated income statement; the cash flows of the subsidiary or business from the acquisition
date to the end of the reporting period are included in the consolidated statement of cash flow.
For reasons such as additional investments that can control an investee not under the same control, the Company
remeasures the equity of the acquiree held before the purchase date according to the fair value of the equity on the
purchase date, and the balance between the fair value and its book value is included in the current investment
income. If the equity of the acquiree held before the purchase date involves other comprehensive income under the
equity method and other changes in owner's equity other than net profit or loss, other comprehensive income and
profit distribution, other comprehensive income and other changes in owner's equity related to it shall be converted
into the investment income of the current period on the date of purchase, except for other comprehensive income
arising from the re-measurement of the net liabilities or changes in net assets of the defined benefit plan of the
investee.
(2) Disposal of subsidiaries or businesses
①General treatment method
During the reporting period, when the Company disposes of a subsidiary or business, the income, expenses and
profits of the subsidiary or business from the beginning of the period to the disposal date are included in the
consolidated income statement, while the cash flow of the subsidiary or the business from the beginning of the
period to the disposal date is included in the consolidated statement of cash flow.
29
深圳南山热电股份有限公司 2020 年半年度财务报告
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 (or combination 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 related to the original subsidiary's equity
investment or other changes in owner's equity other than net profit and loss, other comprehensive income and
profit distribution will be converted to current investment income when the control is lost, except for other
comprehensive income arising from the remeasurement of the net liabilities or changes in net assets of the defined
benefit plan of the investee.
If other investors’ capital increases in the subsidiary results in a decline in the Company's shareholding ratio and
thus loss of control power, accounting shall be conducted in accordance with the above principles.
② Dispose subsidiary step-by-step
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, these several transactions related to the disposal of equity investment in
a subsidiary are accounted for as transactions in a basket when the terms, conditions and economic impacts of
these several transactions meet the following one or more conditions:
i. these transactions are entered into at the same time or after considering their impacts on each other;
ii. these transactions as a whole can reach complete business results;
iii the occurrence of a transaction depends on at least the occurrence of an other transaction;
iv.an individual transaction is not deemed as economic, but is deemed as economic when considered with other
transactions.
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.
If the transactions that dispose of the equity investment in the subsidiary until the loss of control do not belong to
the package transaction, before the loss of control, the relevant policies for partial disposal of the equity investment
in the subsidiary shall be accounted for without losing control. When the control right is lost, the accounting
treatment shall be carried out according to the general treatment method for disposing of the subsidiary.
(3) Purchase of minority shares in subsidiaries
The difference between the Company's newly acquired long-term equity investment due to the purchase of
minority shares and the net assets share calculated continuously by the subsidiary from the date of purchase (or
merger date) in accordance with the calculation of the newly increased shareholding ratio, adjust the equity
premium in the capital reserve in the consolidated balance sheet, if the equity premium in the capital reserve is
insufficient to offset, adjust the retained earnings.
30
深圳南山热电股份有限公司 2020 年半年度财务报告
(4) Partial disposal of equity investment in subsidiaries without losing control
The difference between the disposal cost obtained as a result of partial disposal of long-term equity investment in a
subsidiary without losing control and the net assets share calculated continuously by the subsidiary from the date
of purchase or merger corresponding to the disposal of the long-term equity investment, adjust the equity premium
in the capital reserve in the consolidated balance sheet, if the equity premium in the capital reserve is insufficient
to offset, adjust the retained earnings.
(7) Classification of joint arrangement and accounting treatment
Joint arrangement is divided into joint operation and joint venture.
As a joint party of the joint arrangement, it is a joint operation when the Company enjoys assets related to the
arrangement and bears the liabilities related to the arrangement.
The company confirms the following items related to the share of interests in its joint operations, and in
accordance with the provisions of the relevant accounting standards for accounting treatment:
(1) Recognize the assets held solely by the Company, and recognize assets held jointly by the Company in
appropriation to the share of the Company;
(2) Recognize the obligations assumed solely by the Company, and recognize obligations assumed jointly by the
Company in appropriation to the share of the Company;
(3) Recognize revenue from disposal of the share of joint operations of the Company;
(4) Recognize fees solely occurred by Company;
(5) Recognize fees from joint operations in appropriation to the share of the Company.
Accounting policy for the joint venture investment found more in (14) Long-term equity investment under Note
III.
(8) Determination criteria of cash and cash equivalent
While preparing the cash flow statement, the stock cash and savings available for payment at any time are
recognized as cash. The investments meets the follow four conditions at the same time are recognized as cash
equivalent, that is 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.
(9) Foreign currency business and foreign currency statement translation
1.Foreign currency business
Foreign currency business uses the spot exchange rate on the transaction date as the conversion rate to convert
foreign currency amounts into RMB for accounting.
The balance of foreign currency monetary items at the balance sheet date is converted at the spot exchange rate on
the balance sheet date, the resulting exchange difference is included in current profit and loss, except that the
exchange difference arising from foreign currency special borrowings related to the acquisition or construction of
assets eligible for capitalization is disposed with the principle of borrowing costs capitalization.
2. Foreign currency statement translation
Assets and liabilities in the balance sheet are converted at the spot exchange rate on the balance sheet date; the
31
深圳南山热电股份有限公司 2020 年半年度财务报告
owners' equity items are converted at the spot exchange rate at the time of occurrence, except for the "undistributed
profit" item. The income and expense items in the income statement are converted at the spot exchange rate on the
transaction date.
When disposing of an overseas operation, the translation difference in the foreign currency financial statements
related to the overseas operation is transferred from the owner's equity item to the disposal of current profit or loss.
(10) Financial instrument
Financial instrument consist of financial assets, financial liability and equity instrument.
1.Classification of financial instrument
Based on the Company's business model for managing financial assets and the contractual cash flow characteristics
of financial assets, financial assets are classified as the financial assets measured at amortized cost, the financial
assets (debt instruments) measured at fair value and whose changes are included in other comprehensive income
and the financial assets measured at fair value and whose changes are included in current profit and loss at initial
recognition.
Business model to collect the contractual cash flow, and the contractual cash flow is only the payment of the
principal and the interest based on the outstanding principal amount, is classified as a financial asset measured at
amortized cost; business model to collect the contractual cash flow and sell the financial asset, and the contractual
cash flow is only the payment of principal and the interest based on the outstanding principal amount, is classified
as a financial asset measured at fair value and whose changes are included in other comprehensive income (debt
instruments); other financial assets other than these are classified as financial assets measured at fair value and
whose changes are included in the current profit and loss.
For a non-tradable equity instrument investment, the Company determines at the time of initial recognition
whether to designate it as a financial asset (equity instrument) measured at fair value and whose changes are
included in other comprehensive income. At the time of initial recognition, in order to eliminate or significantly
reduce accounting mismatches, financial assets can be designated as financial assets that are measured at fair value
and whose changes are included in the current profit and loss.
At the time of initial recognition, financial liabilities are classified into financial liabilities that are measured at fair
value and whose changes are included in the current profit and loss and financial liabilities that are measured at
amortized cost.
A financial liability that meets one of the following conditions can be designated as a financial liability measured
at fair value and whose changes are included in current profit and loss at initial measurement:
1) This designation can eliminate or significantly reduce accounting mismatches.
2) In accordance with the corporate risk management or investment strategy stated in formal written documents,
make management and performance evaluation to financial liability portfolios or financial assets and financial
liability portfolios based on fair value, and report to the key management personnel within the enterprise based on
this.
3) The financial liability includes embedded derivatives that need to be split separately.
32
深圳南山热电股份有限公司 2020 年半年度财务报告
2. Recognition basis and measurement method of financial instruments
(1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include bills receivable, accounts receivable, other receivables,
long-term receivables, debt investment, etc., which are initially measured at fair value, and related transaction costs
are included in the initially recognized amount; accounts receivable excluding significant financing components
and accounts receivable with financing components not exceeding one year that the Company decides not to
consider are initially measured at the contract transaction price.
The interest calculated by using the effective interest method during the holding period is included in the current
profit and loss.
When taking back or disposing, the difference between the cost obtained and the book value of the financial asset
is included in the current profit and loss.
(2) Financial assets (debt instrument) measured at fair value and whose changes are reckoned into other
comprehensive income
The financial assets (debt instrument) measured at fair value and whose changes are reckoned into other
comprehensive income consist of receivable financing and other debt investment and initially measured at fair
value, relevant transaction fees are included in initial recognized amount. The financial assets are subsequently
measured at fair value, and the fair value changes are reckoned into other comprehensive income except for the
interest, impairment loss or gain and exchange gain or loss calculated by actual interest rate method.
Upon termination of the recognition, the accumulated gains or losses previously included in other comprehensive
income shall be transferred out and reckoned into current profit and loss.
(3) Financial assets (equity instrument) measured at fair value and whose changes are reckoned into other
comprehensive income
The financial assets (equity instrument) measured at fair value and whose changes are reckoned into other
comprehensive income consist of the equity instrument investment etc. and initially measured at fair value,
relevant transaction fees are included in initial recognized amount. The financial assets are subsequently measured
at fair value, and the fair value changes are reckoned into other comprehensive income. The dividend obtained
should reckoned into current gains/losses.
Upon termination of the recognition, the accumulated gains or losses previously included in other comprehensive
income shall be transferred out and reckoned into retained earnings.
(4) Financial assets measured at fair value and whose changes are reckoned into current gains/losses
The financial assets measured at fair value and whose changes are reckoned into current gains/losses consist of
trading financial assets, derivative financial assets and other non-current financial assets etc. and initially measured
at fair value, relevant transaction fees are included in current gains/losses. The financial assets are subsequently
measured at fair value, and the fair value changes are reckoned into current gains/losses.
Upon termination of the recognition, the difference between its fair value and initial entry amount is recognized as
investment income, and adjust the gains/losses from fair value changes at the same time.
(5) Financial liability measured at fair value and whose changes are reckoned into current gains/losses
The financial liability measured at fair value and whose changes are reckoned into current gains/losses consist of
trading financial liability and derivative financial liability etc. and initially measured at fair value, relevant
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深圳南山热电股份有限公司 2020 年半年度财务报告
transaction fees are included in current gains/losses. The financial liabilities are subsequently measured at fair
value, and the fair value changes are reckoned into current gains/losses.
Upon termination of the recognition, the difference between its fair value and initial entry amount is recognized as
investment income, and adjust the gains/losses from fair value changes at the same time.
(6) Financial liability measured at amortized cost
The financial liabilities measured at amortized cost consist of short-term loans, note payable, account payable,
other account payable, long-term loans, bond payable and long-term account payable, and initially measured at fair
value, relevant transaction fees are included in initial recognized amount.
The interests calculated by effective interest rate method during the holding period is reckoned into current
gains/losses.
Upon termination of the recognition, the difference between consideration paid and the book value of financial
liability is reckoned into current gains/losses.
3. Recognition basis and measurement method for transfer of financial assets
When the Company transfers financial assets, if almost all risks and rewards of ownership of financial assets have
been transferred to the transferee, derecognize the financial assets; if almost all risks and rewards of ownership of
financial assets have been retained, don’t derecognize the financial assets.
When determining whether the transfer of financial assets meets the above conditions for the termination of
recognition of financial assets, adopt the principle of substance over form. The Company distinguishes the transfer
of financial assets into overall transfers and partial transfers of financial assets. If the overall transfer of financial
assets meets the conditions for derecognition, the difference between the following two amounts is included in the
current profit and loss:
(1) The book value of the transferred financial assets;
(2) The sum of the consideration received as a result of the transfer and the cumulative amount of changes in the
fair value that were directly credited to the owner's equity (the transferred financial asset is an available-for-sale
financial asset).
If partial transfer of financial assets meets the conditions for derecognition, the entire book value of the transferred
financial assets is apportioned between the derecognized parts and non-derecognized parts according to their
relative fair values, and the difference between the following two amounts is included in the current profit and loss:
(1) The book value of the derecognition part;
(2) The sum of the consideration of the derecognition part and the amount corresponding to the derecognition part
of the cumulative total of changes in fair value that were directly credited to the owner's equity (the transferred
financial asset is an available-for-sale financial asset).
If the transfer of financial assets does not meet the conditions for derecognition, the financial assets are
continuously recognized, and the consideration received is recognized as a financial liability.
4. Termination recognition of financial liability
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深圳南山热电股份有限公司 2020 年半年度财务报告
Where the current obligation of a financial liability have been discharged in whole or in part, the recognition of the
financial liability or part thereof shall be terminated; If the Company entered into an agreement with its creditors to
replace its existing financial liabilities with the new financial liability, and the contract terms of the new financial
liabilities and the existing financial liabilities are substantially different, the existing financial liabilities shall be
terminated for recognition and the new ones shall be recognized at the same time. As for substantive changes made
to the contract terms (in whole or in part) of the existing financial liabilities, the existing financial liabilities (or
part of it) will be terminated for recognition, and the financial liabilities after term revision will be recognized as a
new financial liability.
When a financial liability is derecognized in whole or in part, the difference between the book value of the
financial liability derecognized and the consideration paid (including the non-cash assets transferred out or the new
financial liabilities assumed) is included in the current profit and loss.
If the Company repurchases part of the financial liabilities, the entire book value of the financial liabilities will be
allocated on the repurchase date according to the relative fair value of the continuing recognition part and the
derecognition part. The difference between the book value allocated to the derecognition part and the consideration
paid (including the transferred non-cash assets or assumed new financial liabilities) is included in the current profit
and loss.
5. Methods for determining the fair value of financial assets and financial liabilities
For financial instruments that have an active market, their fair values are determined by using quotes in the active
market. For financial instruments that do not have an active market, valuation techniques are used to determine
their fair values. In the valuation, the Company adopts valuation techniques that are applicable under the current
circumstances and have sufficient available data and other information support, chooses the input values consistent
with the characteristics of assets or liabilities considered by market participants in the transactions of related assets
or liabilities, and prioritizes the relevant observable input values. The Company uses unobservable input values
only if the relevant observable input values cannot be obtained or are not practicable.
6. Test methods and accounting treatment methods for impairment of financial assets (excluding receivables)
The Company considers all reasonable and evidence-based information, including forward-looking information,
and estimates the expected credit losses of financial assets measured at amortized cost by the single or combined
way and financial assets (debt instruments) measured at fair value and whose changes are included in other
comprehensive income. The measurement of expected credit losses depends on whether a significant increase in
credit risk has occurred since the initial recognition of a financial asset.
If the credit risk of the financial instrument has increased significantly since initial recognition, the Company shall
measure its loss provision at an amount equivalent to the expected credit loss throughout the life of the financial
instrument. If the credit risk of the financial instrument has not increased significantly since initial recognition, the
Company shall measure its loss provision at an amount equivalent to the expected credit loss of the financial
instrument in the next 12 months. The increased or reversed amount of the loss provision thus formed shall be
included in the current profit and loss as impairment losses or gains.
Usually, the Company considers that the credit risk of the financial instrument has increased significantly when it
is overdue for more than 30 days, unless there is conclusive evidence that the credit risk of the financial instrument
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深圳南山热电股份有限公司 2020 年半年度财务报告
has not increased significantly after initial recognition.
If the credit risk of a financial instrument at the balance sheet date is low, the Company will consider that the credit
risk of the financial instrument has not increased significantly since initial recognition.
(11) Bad deb provision of account receivable
Regarding account receivables, whether or not it contains a significant financing component, the Company always
measures its loss provisions at an amount equivalent to the expected credit loss throughout the duration, and the
resulting increase and reversed amount of loss provisions is included in the current profit and loss as impairment
losses or gains.
In addition to receivables that individually assess credit risk, based on their credit risk characteristics, they are
divided into different portfolios:
Item Accrual ratio for account receivable (%)
The portfolio is determined based on the similarity
Group 1: low-risk
of credit risk characteristics, the Company believes
that the credit risk of a receivable that has not been
impaired in a single assessment of credit risk is low,
and no provision for bad debts is made unless there
is evidence that the credit risk of a certain
receivable is high.
If there is objective evidence that a certain account receivable has suffered credit impairment, the Company shall
make provision for bad debts on that account receivable and confirm the expected credit loss.
(12) Inventory
1. Categories of inventory
Inventory consists of fuels and raw materials etc.
2. Valuation method of delivered inventory
The inventories are initially measured at cost. When the inventory is delivered, the actual cost of delivered
inventory shall be determined by weighted average method.
3.Basis for determining the net realizable value of different types of inventories
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.
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深圳南山热电股份有限公司 2020 年半年度财务报告
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. Inventory system
Perpetual inventory system required
5. Amortization method of low-value consumables and packaging
(1) Low-value consumables-one pass method
(2) Packaging- one pass method
(13) Contract assets
1. Confirmation methods and standards of contract assets
If the Company has transferred goods to customers and has the right to receive consideration, and the right depends
on factors other than the time lapses, it is recognized as contract assets. The Company's unconditional (that is, only
depending on the time lapses) right to collect consideration from customers are separately listed as receivables.
2. Determination method and accounting treatment method of expected credit loss of contract assets
The Company's determination method and accounting treatment method for the expected credit loss of contract
assets are detailed in Note III/(11) Provision for bad debts of receivables
(14) Long-term equity investment
1. Criteria judgement for joint control and significant influence
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. Where
the Company and other joint ventures exercise joint control over the investee and enjoy the rights to the net assets
of the investee, the investee is a joint venture of the Company.
Significant influence is the right of the Company to participate in the financial and operation decision-making of
an enterprise, but not to control or jointly control the formulation of such policies with other parties. Where the
Company is able to exert significant influence on the investee, the investee shall be a joint venture of the Company.
2. Determination of initial investment cost
(1) Long-term equity investment resulting from enterprise combination
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深圳南山热电股份有限公司 2020 年半年度财务报告
Enterprise combination under the same control: If the Company pays cash, transfers non-cash assets or assumes
debt, and issues equity securities as the consideration for the merger, the share of the book value of the owner's
equity of the combined party in the consolidated financial statements of the ultimate controlling party on the
combining date shall be used as the initial investment cost of long-term equity investment. If it is possible to
control the investee under the same control due to additional investments, etc., the initial investment cost of
long-term equity investment shall be determined based on the share of the book value of the net assets of the
combined party in the consolidated financial statements of the ultimate controlling party on the merger date. The
difference between the initial investment cost of the long-term equity investment on the merger date and the sum of
the book value of the long-term equity investment before the merger plus the book value of the new share payment
consideration obtained on the merger date adjusts the equity premium. If the equity premium is insufficient to be
offset, the retained earnings shall be offset.
Business combination not under the same control: The Company uses the combination cost determined on the
purchase date as the initial investment cost of the long-term equity investment. If it is possible to exercise control
over an investee that is not under the same control due to additional investments, etc., the sum of the book value of
the original equity investment plus the newly increased investment cost is used as the initial investment cost
calculated by the cost method.
(2) Long-term equity investment obtained through other methods
For a long-term equity investment obtained by paying cash, the actually paid purchase price is taken as the initial
investment cost.
For a long-term equity investment obtained by issuing equity securities, the fair value of the issued equity
securities is taken as the initial investment cost.
On the premise that the non-monetary asset exchange has commercial substance and that the fair value of the
assets swapped in or out can be reliably measured, the initial investment cost of the long-term equity investment
swapped in by non-monetary assets exchange is determined by the fair value of assets swapped out and the
relevant payable taxes and fees, unless there is conclusive evidence that the fair value of the assets swapped in is
more reliable; for non-monetary assets exchange that do not meet the above preconditions, the book value of the
assets swapped out and the relevant taxes and fees payable are used as the initial investment cost of the long-term
equity investment swapped in.
For a long-term equity investment obtained through debt restructuring, its entry value is determined based on the
fair value of the abandoned creditor's rights and other costs such as taxes directly attributable to the asset, and the
difference between the fair value of the abandoned creditor's rights and the book value is included in the current
profit and loss.
3. Follow-up measurement and gain/loss recognition
(1) Long-term equity investment measured at cost
The long-term equity investment in subsidiaries shall be measured at 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.
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深圳南山热电股份有限公司 2020 年半年度财务报告
(2) Long-term equity investment measured at equity
The long-term equity investment in associated enterprise and joint ventures shall be measured at cost. If the initial
investment cost is greater than than the share of fair value of the invested entity’s identifiable net assets, the initial
investment cost of the long-term equity investment will not be adjusted; if the initial investment cost is less than
than the share of fair value of the invested entity’s identifiable net assets, the difference shall reckoned in current
gains/losses.
The investment gain and other comprehensive income shall be recognized based on the Company’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 owners’ equity.
The Company 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 during the accounting period and according to the accounting policy of the Company. During the period of
holding the investment, the investee prepares the consolidated financial statements based on the net profit, other
comprehensive income, and the amount attributable to the investee in changes in other owners' equity in the
consolidated financial statements for business accounting.
When the Company confirms that it should share the losses incurred by the investee, it shall proceed in the
following order. Firstly, write off the book value of the long-term equity investment. Secondly, if the book value of
the long-term equity investment is not sufficient to offset, the investment loss shall continue to be recognized
within the limit of the book value of long-term equity that substantially constitutes a net investment in the investee,
and offset the book value of long-term receivables. Finally, after the above-mentioned treatment, if the enterprise
still bears additional obligations as stipulated in the investment contract or agreement, the estimated liabilities are
recognized according to the estimated obligations and included in the current investment loss.
(3) Disposal of long-term equity investment
When disposing of a long-term equity investment, the difference between its book value and the actual purchase
price is included in the current profit and loss.
When disposing of a long-term equity investment accounted for by using the equity method, use the same basis as
the investee directly disposes of related assets or liabilities, and make accounting treatment to the portion that was
originally included in other comprehensive income according to the corresponding proportion. The owner's equity
recognized as a result of changes in other owner's equity of the investee other than net profit or loss, other
comprehensive income, and profit distribution is carried forward to the current profit and loss on a pro rata basis,
except for other comprehensive income arising from the remeasurement of the net liabilities or net assets changes
of the defined benefit plan by the investee.
If the joint control or significant influence on the investee is lost due to the disposal of part of the equity
investment, etc., the remaining equity after disposal shall be calculated in accordance with the financial instrument
recognition and measurement standards, and the difference between the fair value and the book value on the day of
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深圳南山热电股份有限公司 2020 年半年度财务报告
losing the joint control or significant influence is included in the current profit and loss. Other comprehensive
income of the original equity investment recognized due to using the equity method for accounting shall adopt the
accounting treatment on the same basis as the investee directly disposes of related assets or liabilities when
terminating the adoption of equity method for accounting. The owner's equity recognized as a result of changes in
the owner's equity other than net profit or loss, other comprehensive income and profit distribution of the investee
is transferred to current profit and loss when terminating the adoption of equity method for accounting.
The control over the investee is lost due to the disposal of part of the equity investment and the capital increase in
the subsidiary by other investors resulting in a decline in the shareholding ratio of the Company, in preparing
separate financial statements, the remaining equity interest which can apply common control or impose significant
influence over the investee 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 investeel, 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.
The disposed equity is obtained through business combination due to additional investment and other reasons,
when preparing individual financial statements, if the remaining equity after disposal uses cost method or equity
method for accounting, the equity investments held before the acquisition date shall be carried forward in
proportion to other comprehensive income and other owner's equity recognized through equity method accounting;
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.
(15) 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. (Including buildings for lease after self-construction or development activities
completed and buildings under construction or development for lease in the future)
Investment real estate of the Company are measured at cost model. The Investment real estate- rental buildings
measured at cost model has the same depreciation policy as fixed assets, the land use right for lease is exercise the
amortization policy as intangible assets.
(16) 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. Fixed assets are
recognized when the following conditions are simultaneously met:
(1) The economic benefits with the fixed assets concerned are likely to flow into the enterprise; and
(2) cost of the fixed assets can be measured reliably.
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深圳南山热电股份有限公司 2020 年半年度财务报告
2. Depreciation method
From the next month since reaching the intended use state, depreciation 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:
Depreciation
Category Depreciation life (Year) Residuals rate(%) Annual depreciation rate (%)
method
Houses and
Straight-line 20-year 10 4.5
buildings
Equipment (fuel
machinery sets Straight-line 15-20-year 10 4.5-6
excluded)
Equipment-fuel The work
machinery quantity 10 The work quantity method
sets(Note) method
Transportation Straight-line
5-year 10 18
tools
Other equipment Straight-line 5-year 10 18
Estimated salvage value refers to the amount of value retrieved after deducting of predicted disposal expense when
the expected using life of a fixed asset has expired and in the expected state of termination.
Note: gas turbine generator set is provided with depreciation under workload method, namely to determine the
depreciation amount per hour of gas turbine generator set based on equipment value, predicted net remaining value
and predicted generation hours. Details are set out as follows:
Name of the Company Fixed assets Depreciation amount (RMB/Hour)
538.33
Generating unit 1#
The Company 601.20
Generating unit 3#
520.61
New Power Generating unit 10#
4,246.00
Generating unit 1#
Zhongshan Electric Power 4,160.83
Generating unit 3#
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深圳南山热电股份有限公司 2020 年半年度财务报告
3. 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.
4. Other explanation
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 assets 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.
(17) Construction in process
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.
(18) 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
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深圳南山热电股份有限公司 2020 年半年度财务报告
decided by the weighted average of common borrowings.
During the capitalization period, exchange differences on a specific purpose borrowing denominated in foreign
currency shall be capitalized. Exchange differences related to general-purpose borrowings denominated in foreign
currency shall be included in profit or loss for the current period.
Qualifying assets are assets (fixed assets, investment property, inventories, etc.) that necessarily take a substantial
period of time for acquisition, construction or production to get ready for their intended use or sale.
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.
(19) Intangible assets
An intangible asset is an identifiable non-monetary asset without physical substance owned or controlled by the
Company.
An intangible asset shall be initially measured at cost. The expenditures incurred on an intangible asset shall be
recognized as cost of the intangible asset only if it is probable that economic benefits associated with the asset will
flow to the Company and the cost of the asset can be measured reliably. Other expenditures on an item asset shall
be charged to profit or loss when incurred.
Land use right acquired shall normally be recognized as an intangible asset. Self-constructed buildings (e.g. plants),
related land use right and the buildings shall be separately accounted for as an intangible asset and fixed asset. For
buildings and structures purchased, the purchase consideration shall be allocated among the land use right and the
buildings on a reasonable basis. In case there is difficulty in making a reasonable allocation, the consideration shall
be recognized in full as fixed assets.
An intangible asset with a finite useful life shall be stated at cost less estimated net residual value and any
accumulated impairment loss provision and amortized using the straight-line method over its useful life when the
asset is available for use. Intangible assets with indefinite life are not amortized.
The Group shall review the useful life of intangible asset with a finite useful life and the amortization method
applied at least at each financial year-end. A change in the useful life or amortization method used shall be
accounted for as a change in accounting estimate. For an intangible asset with an indefinite useful life, the Group
shall review the useful life of the asset in each accounting period. If there is evidence indicating that the useful life
of that intangible asset is finite, the Company shall estimate the useful life of that asset and apply the accounting
policies accordingly.
(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 process, intangible assets with an infinite useful life,
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深圳南山热电股份有限公司 2020 年半年度财务报告
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 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.
Once an impairment loss of these assets is recognized, it is not allowed to be reversed even if the value can be
recovered in subsequent period.
(21) Long-term unamortized expenses
Long-term unamortized 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.
(22)Contract liabilities
1. Confirmation method of contract liabilities
The Company's obligation to transfer goods or provide services to customers for consideration received or
receivable from customers is listed as contract liabilities.
(23) Staff remuneration
Staff remuneration includes short term staff remuneration, post office benefit, dismissal benefit and other long term
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深圳南山热电股份有限公司 2020 年半年度财务报告
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.
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.
(24) Accrual liability
1. Recognition criteria
The obligations with contingencies concerned as litigation, debt guarantee and contract in loss are recognized as
accrual liability when the following conditions are met simultaneously:
(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.
Measurement on vary accrual liability
At balance sheet day, with reference to the risks, uncertainty and periodic value of currency that connected to the
45
深圳南山热电股份有限公司 2020 年半年度财务报告
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 there under 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).
(25) Revenue
The Company’s revenue is recognized after it has fulfilled the performance obligations in the contract, that is,
when the customer obtains control of the relevant assets (goods or services). Whether the performance obligation is
fulfilled within a certain period of time or at a certain time point depends on the terms of the contract and relevant
legal provisions. If the Company meets one of the following conditions, it belongs to the performance obligation
within a certain period of time:
1. The customer obtains and consumes the economic benefits brought by the Company's performance when the
Company fulfills its performance.
2. The client can control the assets under construction during the performance of the Company.
3. The assets produced by the Company during the performance have irreplaceable uses, and the Company has the
right to collect payment for the cumulative performance that has been completed so far during the entire contract
period.
If the performance obligation is performed within a certain period of time, the Company recognizes revenue
according to the performance progress. Otherwise, the Company recognizes revenue at a certain point when the
customer obtains control of the relevant assets. The performance progress is measured by the Company's
expenditure or investment in fulfilling the performance obligations, and the progress is determined based on the
proportion of the cumulative cost incurred as of the balance sheet date of each contract to the estimated total cost.
When determining the contract transaction price, if there is a variable consideration, the Company shall determine
the best estimate of the variable consideration based on the expected value or the most likely amount, and the
amount that does not exceed the cumulatively recognized revenue when the relevant uncertainty is eliminated and
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深圳南山热电股份有限公司 2020 年半年度财务报告
that is very likely not to have significant reversal is included in the transaction price. If there is a major financing
component in the contract, the Company will adjust the transaction price according to the financing component in
the contract; if the interval between the transfer of control and the payment by the customer is less than one year,
the Company will not consider the financing component.
Detail recognition according to specific revenue:
1. Power marketing 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. Specific criteria for revenue recognition of the Environment Protection Company
At the end of each month, the company confirms the monthly income based on the initially confirmed sludge
transportation volume and sludge treatment price, and revises the revenue confirmed last month after checking
with the relevant units in the next month, and the correction proportion is relatively small.
3. Specific criteria for revenue recognition of the Engineering Company
(1)Debugging projects: When the debugging is successful, obtain the confirmation of successful debugging, and
confirm the income according to the contract;
(2) Operation and maintenance and management projects: Temporarily estimate and confirm the income every
month according to the attendance time and labor service price of attendance staff, and adjust the temporarily
estimated income after obtaining the monthly settlement statement sealed and signed by suppliers, the confirmation
of progress, and the attendance form.
(26)Contract costs
Contract costs are divided into contract performance costs and contract acquisition costs.
The cost incurred by the Company to perform the contract is recognized as an asset as the contract performance
cost when meeting the following conditions:
1. The cost is directly related to a current or expected contract.
2. The cost increases the Company's future resources for fulfilling contract performance obligations.
3. The cost is expected to be recovered.
The incremental cost incurred by the Company for obtaining the contract is expected to be recovered, and it is
recognized as an asset as the cost of obtaining the contract.
Assets related to contract costs are amortized on the same basis as the revenue of goods or services related to the
asset; however, if the amortization period of contract acquisition costs does not exceed one year, the Company will
include them in the current profits and losses when they occur.
If the book value of assets related to contract costs is higher than the difference between the following two items,
the Company will make provisions for impairment for the excess part and recognize it as an asset impairment loss:
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深圳南山热电股份有限公司 2020 年半年度财务报告
1. The remaining consideration expected to be obtained due to the transfer of goods or services related to the asset;
2. Costs estimated to incur for the transfer of the related goods or services.
If the aforementioned asset impairment provision is subsequently reversed, the book value of the asset after
reversal shall not exceed the book value of the asset on the date of reversal under the assumption that no
impairment provision is made.
(27) 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 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.
(28) 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
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深圳南山热电股份有限公司 2020 年半年度财务报告
measured as amount of income tax payable (or repayable) as specified by tax law. The taxable income for
calculating the current income tax expenses is based on the pre-tax accounting profit of the current year after
adjustment according to relevant regulations of taxation.
2. Deferred income tax asset & deferred income tax liability
For balance of book value of some asset/liability item and its tax base, or temporary difference derived from
balance of book value and tax base of the item, which is not confirmed as asset or liability but tax base can be
fixed as specified by tax law, deferred income tax asset & deferred income tax liability will be confirmed in
balance sheet liability approach.
Deferred income tax liabilities are not recognized for taxable temporary differences related to: the initial
recognition of goodwill; and the initial recognition of an asset or liability in a transaction which is neither a
business combination nor affects accounting profit or taxable profit (or deductible loss) at the time of the
transaction. In addition, the Group recognizes the corresponding deferred income tax liability for taxable
temporary differences associated with investments in subsidiaries, associates and joint ventures, except when both
of the following conditions are satisfied: the Company able to control the timing of the reversal of the temporary
difference; and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are not recognized for deductible temporary differences related to the initial recognition
of an asset or liability in a transaction which is neither a business combination nor affects accounting profit or
taxable profit (or deductible loss) at the time of the transaction. In addition, the Group recognizes the
corresponding deferred income tax asset for deductible temporary differences associated with investments in
subsidiaries, associates and joint ventures to the extent that it is probable that taxable profits will be available
against which the deductible temporary differences can be utilized, except when both of the following conditions
are satisfied: it is not probable that the temporary difference will reverse in the foreseeable future; and it is not
probable that taxable profits will be available in the future, against which the temporary difference can be utilized.
For deductible loss and taxation decrease which can be carried over to following fiscal year, relevant deferred
income tax asset may be confirmed subject to amount of taxable income which is likely to be acquired to deduct
deductible loss and taxation decrease in the future.
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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深圳南山热电股份有限公司 2020 年半年度财务报告
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.
(29) Leasing
Finance lease is to virtually transfer all risks and rewards related to ownership of asset, the ownership is may
transfer ultimately or not. Leases other than finance lease are operating leases.
1.Lease business with the Company as the rentee
The rental is reckoned into the relevant assets cost or the current loss/gain in the straight-line method. The initial
direct expenses are reckoned into the current gain/loss, or the actual rental into the current loss/gain.
2.Lease business with the Company as the renter
The rental is reckoned into the relevant assets cost or the current loss/gain in the linear way. The initial direct
substantive expenses are capitalized and reckoned into the current gain/loss, or the actual rental into the current
loss/gain. The initial direct small expenses are reckoned into the current actual gain/loss, or the actual rental into
the current loss/gain.
3. Financing lease business with the Group recorded as lessee
On the beginning date of the lease, the entry value of leased asset shall be at the lower of the fair value of the
leased asset and the present value of minimum lease payment at the beginning date of the lease. Minimum lease
payment shall be the entry value of long-term accounts payable, with difference recognized as unrecognized
financing expenses. In addition, initial direct costs attributable to leased items incurred during the process of lease
negotiation and signing of lease agreement shall be included in the value of leased assets. The balance of minimum
lease payment after deducting unrecognized financing expenses shall be accounted for long-term liability and
long-term liability due within one year.
Unrecognized financing expenses shall be recognized as financing expenses for the current period using effective
interest method during the leasing period. Contingent rent shall be included in profit or loss for the current period
at the time it incurred.
4.Financing lease business with the Group recorded as lessor
On the beginning date of the lease, the entry value of lease receivable shall be the aggregate of minimum lease
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深圳南山热电股份有限公司 2020 年半年度财务报告
receivable and initial direct costs at the beginning date of the lease. The unsecured balance shall be recorded. The
aggregate of minimum lease receivable, initial direct costs and unsecured balance and the different between their
present value shall be recognized as unrealized 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
(30) Other major accounting policies and estimations
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.
(31) Changes of major accounting policy and accounting estimation
1. Change of major accounting policies
The Accounting Standards for Business Enterprises No. 14 - Revenue was revised by Ministry of Finance in 2017.
In accordance with the Revised Standard, the cumulative impact of the first implementation of the standard is
adjusted for the amount of retained earnings and other related items in the financial statements at the beginning of
the first implementation period (January 1, 2020), and no adjustment is made to the comparable period information.
Main influence while exercising the above provision are as:
Content / causes for the changes of Approval procedures
Note
accounting policies
The Company implemented the Accounting
No
Standards for Business Enterprises No. 14 -
Deliberated and approved by 6th session of 8th BOD significant
Revenue revised by Ministry of Finance in
influence
2017 since 1 Jan. 2020
2. Change of accounting estimation
No change of accounting estimation occurred in the reporting period
(32)Major accounting judgment and estimation
When using the accounting policies, the Company 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.
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深圳南山热电股份有限公司 2020 年半年度财务报告
The Group conducts regular re-review on the aforesaid judgment, estimation and assumption on a continued
operation basis. If the change of accounting estimation only affect current period, the affected amount is
recognized in the period when change occurs. If the change affects current and future periods both, the affected
amount is recognized in the period when change occurs and future periods.
On balance sheet date, major aspects in the statement need to judge, estimate and consumption by the Company
are as:
1.Fixed assets are provided for depreciation by output method
The Group recognizes depreciation for unit electricity based on values of power generation machine sets, projected
power sales volume and projected net remaining value, and provides for depreciation according to depreciation of
unit electricity and actual power sales volume. Taking into account the prevailing industry policies, technologies,
consumption, allocation method of power management authorities and past experiences, and the Group
management believes that it is adequate for utilization life of such power generation machine sets, projected power
sales volume, projected net remaining value and provision method for depreciation. If the future actual power sales
volume differs substantially from the projected one, the Group would make adjustment to unit electricity
depreciation, which would bring affects to the depreciation expenses included in profit and loss for the current and
future periods.
2.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 collectibility 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.
3.Allowance for inventories
Under the accounting policies of inventories and by measuring at the lower of cost and net realizable value, the
Group makes allowance for inventories that have costs higher than net realizable value or become obsolete and
slow moving. Write-down of inventories to their net realizable values is based on the salability of the evaluated
inventory and their net realizable values. Identification of inventories requires management to make judgments and
estimates on the basis of obtaining conclusive evidence, and considering the purpose of holding inventory and the
events after balance sheet date. The differences between actual results and the original estimate will affect the book
value of inventories as well as the recognition or reversal of provision for inventories in the period in which the
estimate is changed.
4. Impairment provision for long-term 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
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深圳南山热电股份有限公司 2020 年半年度财务报告
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.
5. Depreciation and amortization
Assets such as investment real estate 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 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.
6. 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.
7. Accrual 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 accrual 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 accrual liability 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.
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深圳南山热电股份有限公司 2020 年半年度财务报告
IV. Taxes
(1) Main taxation and rates
Taxation items Taxation basis Tax rate
Calculate the output tax based on the sales of goods and
6%, 9%, 10%,
taxable service income calculated according to the tax
VAT law, after deducting the input tax allowable for deduction 11% , 13%,
in the current period, the difference is the VAT payable. 16%
According to the actual payment of VAT and
City maintenance tax 5%, 7%
consumption tax
According to the actual payment of VAT and
Education surtax 3%
consumption tax
According to the actual payment of VAT and
Local education surtax 2%
consumption tax
16.5%, 17%,
Enterprise income tax According to the taxable income amount
25%, 15%
2 Yuan ~ 8Yuan per square meter of the actual occupied are for the industrial
Land-use tax of town land located in Nanshan District, Shenzhen City; 1Yuan per square meter of
the actual occupied are for the industrial land located in Zhongshan City
Tax by the Value-added amount from transferring state-owned land use right,
Land VAT landing construction and its affiliates with four super-rate progressive tax
rate
As for the taxpaying bodies have different enterprise income tax rate, explanation as:
Taxpaying body Rate of income tax
The Company 25%
New Power Company 25%
Engineering Company 25%
Shenzhen Server 25%
Environment Protection Company 15%
Zhongshan Electric Power 25%
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深圳南山热电股份有限公司 2020 年半年度财务报告
Taxpaying body Rate of income tax
Singapore Company 17%
Shen Storage 25%
Syndisome 16.5%
(2) Taxes preferential
1. VAT
Ta Name of the Relevant regulation and Approval Approval Exemption Period of
company policies basis institution documents range validity
x
Notice on "contents of
Shenzhen Resource
products with
Provincial comprehen
Environment comprehensive utilization 31 Aug.
Office, SAT SQSST[2018] sive
V of resources and 2018 to 31
Protection (Qianhai No.: 18302 utilization
AT value-added tax privilege July 2022
Company SAT) of VAT
of labor service" (CS No.
refund
[2015] 78)
2. Income tax
According to the announcement (No. 60 of 2019) of the Ministry of Finance, the State Administration of Taxation,
the National Development and Reform Commission, and the Ministry of Ecological Environment, and the
Announcement on Issues Concerning Income Tax Policies for Third-Party Enterprises Engaged in Pollution
Prevention and Control of the Ministry of Finance and the State Administration of Taxation, from January 1, 2019
to December 31, 2021, the corporate income tax will be levied at a reduced rate of 15% on eligible third-party
enterprises engaged in pollution prevention and control. The Company’s subordinate Environment Protection
Company enjoys the above preferential policy and levies corporate income tax at a rate of 15%
55
深圳南山热电股份有限公司 2020 年半年度报告全文
V. Annotation of the items in consolidate financial statement
(1) Monetary fund
Item Ending Balance Year-end balance of last year
Cash on hand 65,138.88 84,307.60
Bank savings 467,274,657.16 731,339,856.01
Other monetary fund 617,564,170.77 41,785,691.23
Total 1,084,903,966.81 773,209,854.84
Including: total amount saving aboard 6,292,429.36 6,242,072.77
Note: among the above mentioned “other monetary fund”, the restricted monetary fund including cash deposit of 0
Yuan in total (on 31 Dec. 2019, the restricted monetary fund include cash deposit of 1,719,853.88 Yuan)
(2) Bill receivable
Year-end balance of last
Item Ending Balance
year
Bank acceptance note 2,900,000.00 0.00
Commercial Acceptance Notes 0.00 0.00
Total 2,900,000.00 0.00
(3) Account receivable
1. Age analysis
Account age
Ending Balance Year-end balance of last year
Within one year
132,034,578.25 178,147,691.32
1 to 2 years
2 to 3 years
Over 3 years
5,769,529.84 5,769,529.84
Subtotal
137,804,108.09 183,917,221.16
Less: Bad debt provision
5,766,640.84 5,766,640.84
Total
132,037,467.25 178,150,580.32
2. According to accrual method for bad debts
Category
Ending Balance
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深圳南山热电股份有限公司 2020 年半年度报告全文
Book balance Bad debt provision Book value
Proportion Accrual
Amount Amount
(%) proportion (%)
With single provision for
5,766,640.84 4.18 5,766,640.84 100.00
bad debts
With bad debt provision
accrual based on similar
132,037,467.25 95.82 132,037,467.25
credit risk characteristics
of a portfolio
Total 137,804,108.09 100.00 5,766,640.84 4.18 132,037,467.25
Year-end balance of last year
Book balance Bad debt provision Book value
Category
Accrual
Amount Ratio (%) Amount
ratio (%)
With single provision for
5,766,640.84 3.14 5,766,640.84 100.00
bad debts
With bad debt provision
accrual based on similar
178,150,580.32 96.86 178,150,580.32
credit risk characteristics of
a portfolio
Total 183,917,221.16 100.00 5,766,640.84 3.14 178,150,580.32
With single provision for bad debts:
Ending Balance
Name
Book amount Bad debt provision Accrual proportion (%) Causes
Shenzhen
3,474,613.06 3,474,613.06 100.00 Uncollectible in excepted
Petrochemical
Products Bonded
Trading Co., Ltd.
Zhongji 1,137,145.51 1,137,145.51 100.00 Uncollectible in excepted
Construction
Development Co.,
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深圳南山热电股份有限公司 2020 年半年度报告全文
Ending Balance
Name
Book amount Bad debt provision Accrual proportion (%) Causes
Ltd.
Shenzhen Fuhuade 800,000.00 800,000.00 100.00 Uncollectible in excepted
Power Co., Ltd
Other 354,882.27 354,882.27 100.00 Uncollectible in excepted
Total 5,766,640.84 5,766,640.84 100.00
Provision for bad debts by portfolio：
Provision by portfolio：
Ending balance
Name Bad debt provision Accrual proportion (%)
Account receivable
With minor
132,037,467.25 0.00
credit risk
Recognition standards and specifications on provisions by portfolio:
The account receivable with provision for bad debts by portfolio mainly refers to the amount from
Guangdong Power Grid Co., Ltd., Shenzhen Power Supply Bureau Co., Ltd. and Shenzhen Water
Bureau etc., which have minor credit risk and no provision for bad debts.
3. Bad debt provision accrual collected or switch back
Current amount changed
Year-end balance of
Category Collected or Rewrite or
Accrual Ending Balance
last year switch back write-off
With single 5,766,640.84 5,766,640.84
provision for bad
debts
There is no receivable with significant recovery or reversal amount of bad debt provision in the
current period.
4. Account receivable without actual charge off in the period
5. Top 5 receivables at ending balance by arrears party
Total period-end balance of top five receivables by arrears party amounting to
129,063,847.54 Yuan, takes 93.66 percent of the total account receivable at period-end, bad
debt provision accrual correspondingly at period-end amounting as 0 Yuan
6. No accounts receivable terminated recognition due to transfer of financial assets at the end
58
深圳南山热电股份有限公司 2020 年半年度报告全文
of the period
(4) Account paid in advance
1. Account paid in advance classified according to age
Ending Balance Year-end balance of last year
Age
Book balance Proportion (%) Book balance Proportion (%)
Within 1year 28,934,955.72 88.09 69,896,494.56 99.84
1 to 2years 3,820,156.23 11.63 15,600.00 0.02
2 to 3years 32,000.00 0.05
Over 3 years 93,586.94 0.28 61,586.94 0.09
Total 32,848,698.89 100.00 70,005,681.50 100.00
2. Top five accounts paid in advance at period-end balance listed by object
Proportion in total book
Paid in advance to Book balance balance of accounts paid in
advance (%)
Guangdong sales branch of CNOOC Gas 22,631,736.13 68.90
Power Group Co., Ltd.
Shenzhen Gas Group Co., Ltd. 3,820,156.23 11.63
Guangzhou Zike Environmental Protection 802,500.00 2.44
Technology Co., Ltd.
Xinao Energy Trading Co., Ltd. 351,988.63 1.07
Yongcheng Property Insurance Co., Ltd. 161,674.43 0.49
Shenzhen Branch
Total 27,768,055.42 84.53
(5) Other account receivable
Item Book balance Year-end balance of last year
Interest receivable
Dividend receivable
Other account receivable 80,837,116.58 32,321,826.94
Total 80,837,116.58 32,321,826.94
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深圳南山热电股份有限公司 2020 年半年度报告全文
1. Other account receivable
(1) Age analysis
Account age
Book balance Year-end balance of last year
Within one year
50,107,926.26 4,589,653.32
1 to 2 years
1,215,311.98 1,223,336.54
2 to 3 years
2,758,753.80 3,414,019.37
Over 3 years
58,587,544.98 54,927,238.15
Subtotal
112,669,537.02 64,154,247.38
Less: Bad debt provision
31,832,420.44 31,832,420.44
Total
80,837,116.58 32,321,826.94
(2) By category
Book balance
Book balance Bad debt provision
Category
Accrual
Proportion Book value
Amount Amount proportion
(%)
(%)
With single provision 32,525,936.22 28.87 31,832,420.44 97.87 693,515.78
for bad debts
With bad debt 80,143,600.80 71.13 80,143,600.80
provision accrual based
on similar credit risk
characteristics of a
portfolio
Total 112,669,537.02 100.00 31,832,420.44 28.25 80,837,116.58
Year-end balance of last year
Book balance Bad debt provision
Category
Proportion Accrual Book value
Amount Amount
(%) proportion (%)
With single provision 31,832,420.
32,525,936.22 50.70 97.87 693,515.78
44
for bad debts
31,628,311.16 49.30 31,628,311.16
With bad debt provision
60
深圳南山热电股份有限公司 2020 年半年度报告全文
Year-end balance of last year
Book balance Bad debt provision
Category
Proportion Accrual Book value
Amount Amount
(%) proportion (%)
accrual based on similar
credit risk
characteristics of a
portfolio
31,832,420.
Total 64,154,247.38 100.00 49.62 32,321,826.94
44
With single provision for bad debts:
Book balance
Name
Book balance Bad debt provision Accrual ratio （%） Accrual reasons
Huiyang Kangtai
14,311,626.70 14,311,626.70 100.00 Un-collectable in excepted
Industrial Company
Shandong Jinan
3,560,000.00 3,560,000.00 100.00 Un-collectable in excepted
Generation Equipment
Plant
Individual income tax 2,470,039.76 2,470,039.76 100.00 Un-collectable in excepted
Dormitory amount 2,083,698.16 1,736,004.16 83.31 Some un-collectable in excepted
receivable
Personal receivables 7,498,997.87 7,498,997.87 100.00 Un-collectable in excepted
Deposit receivable 1,658,796.73 1,312,974.95 79.15 Some un-collectable in excepted
Other 942,777.00 942,777.00 100.00 Un-collectable in excepted
Total 32,525,936.22 31,832,420.44 97.87
Provision for bad debts by portfolio：
Provision by portfolio：
Ending balance
Name Other account receivable Bad debt provision Accrual proportion (%)
With minor credit risk 80,143,600.80
Recognition standards and specifications on provisions by portfolio:
The Company believes that the credit risk of other account receivable with no impairment in the
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深圳南山热电股份有限公司 2020 年半年度报告全文
single assessment is relatively low, no provision for bad debts, unless there is an evidence that a
certain other account receivable is at greater credit risk.
(3) Accrual of bad debt provision
Phases I Phases II Phases III
Expected credit
Expected credit
losses for the
Expected credit losses for the entire
Bad debt provision entire duration Total
losses over next 12 duration (without
(with credit
months credit impairment
impairment
occurred)
occurred)
Balance at last year-end 31,832,420.44 31,832,420.44
Book balance of other account
receivable at year-begin
——Turn to phase II
——Turn to phase III
——Return to Phase II
——Return to Phase I
Current accrual
Current switch back
Rewrite in the period
Write-off in the period
Other changes
Book balance 31,832,420.44 31,832,420.44
(4) Bad debt provision accrual collected or switch-back in the period
Current amount changed
Category Year-end balance
Collected or Rewrite or
Accrual Book balance
of last year switch back write-off
Bad debt
provision for 31,832,420.44 31,832,420.44
other receivables
(5) No other accounts receivable that had actually written off in the period
(6) By nature
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深圳南山热电股份有限公司 2020 年半年度报告全文
Nature Ending book balance Book balance at last year-end
2,083,698.16 2,083,698.16
Dormitory receivables
8,114,769.72 8,114,769.72
Deposit receivable
10,625,884.03 10,625,884.03
Personal receivables
13,243,635.56 13,114,012.69
Co management account
Accounts receivable of
8,432,761.42 9,060,361.44
Huidong Server
Receivables from equity transfer 44,990,000.00 -
25,178,788.13 21,155,521.34
Other
112,669,537.02 64,154,247.38
Total
(7) Top five other account receivables at period-end balance listed by arrears party
Proportion in
total period-end Period-end
Name of the company Nature Ending balance Age balance of balance of bad
other account debt provision
receivable (%)
Shenzhen Gas Group Co., Equity 44,990,000.00 Within 1 39.93
Ltd. transfer years
Huidong Server Harbor Intercourse 21,676,396.98 Over 3 19.24
Comprehensive fund years
Development Co., Ltd.
Huiyang County Kangtai Other 14,311,626.70 Over 3 12.70 14,311,626.70
Industrial Company years
China Machinery Guarantee 4,906,822.44 Within 3 4.36
Engineering Corporation money years
Shandong Jinan Power Other 3,560,000.00 Over 3 3.16 3,560,000.00
Equipment Factory years
89,444,846.12 79.39 17,871,626.70
(8) No receivables involving government subsidies at the end of the period
(9) No other receivables terminated recognition due to transfer of financial assets
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深圳南山热电股份有限公司 2020 年半年度报告全文
(6) Inventory
1. Classification
Ending Balance Year-end balance of last year
Inventory Inventory
Item
Book balance falling price Book value Book balance falling price Book value
reserves reserves
Raw 150,562,248.7 42,008,350.5 108,553,898.2 171,828,426.1 47,141,982.5 124,686,443.6
material 6 4 2 9 8 1
s
Note: After the sale of the equity of Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd. this year, Shen
Nan Dian (Dongguan) Weimei Electric Power Co., Ltd. will no longer be included in the scope of consolidation
from April 30, 2020, and the original assets and liabilities have been transferred out.
2. Inventory falling price reserves
Current increased Current decreased Ending Balance
Year-end balance Changes in
Item Switch-back
of last year Accrual Other scope of
or write-off
consolidation
Raw 47,141,982.58 5,133,632.04 42,008,350.54
materials
3. Accrual basis for the depreciation provision of inventory and reasons of switch-back or
write-off in the year
Reasons of
Item Accrual basis Reasons of write-off
switch-back
Raw materials Cost higher the net realizable value Not applicable Spare parts on sale
(7) Other current assets
Item Ending Balance Opening Balance
VAT input tax deductible 341,415,281.38 349,953,491.34
Enterprise income tax paid in advance 6,583,089.98 6,583,089.98
139,674,162.93 86,000,000.00
Financial products
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深圳南山热电股份有限公司 2020 年半年度报告全文
Item Ending Balance Opening Balance
4,057,800.00 2,670,150.01
Accrual interest of time deposit
Other 30,000.00 30,000.00
Total 491,760,334.29 445,236,731.33
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深圳南山热电股份有限公司 2020 年半年度报告全文
(8) Long-term equity investment
Changes +,-
Period-end
Year-end Investment Other Other Declaration
Provision Ending balance of
The invested entity balance of last Additional gains/losses comprehensive changes of cash
Disinvestment for Other Balance depreciation
year investment recognized by income in dividends
impairment reserves
equity method adjustment equity or profits
1. Joint venture
Huidong Server 14,619,203.03 -243,622.43 14,375,580.60
Harbor
Comprehensive
Development
Company (“Huidong
Server” for short)
Total 14,619,203.03 -243,622.43 14,375,580.60
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深圳南山热电股份有限公司 2020 年半年度报告全文
(9) Other equity instrument investment
1. Other equity instrument investment
Item Book balance
CPI Jiangxi Nuclear Power Company
60,615,000.00
Shenzhen Petrochemical Oil Bonded Trade Co., Ltd. -
2,500,000.00
investment cost
Shenzhen Petrochemical Oil Bonded Trade Co., Ltd. -
-2,500,000.00
change in fair value
Total 60,615,000.00
2. Non trading equity instrument investment
Reasons of
Dividend Retained Designated as the retained
income earnings investment measured at fair earnings
recogniz Accumulat Accumulat transferred value and whose changes transferred
Item
ed in the ed gain ed loss from other reckoned into other from other
current comprehensi comprehensive income comprehensi
period ve income (explain reasons) ve income
Jiangxi
Nuclear
intents to holding for a
Power Co.,
long-term
Ltd.
Shenzhen
Petrochemi
cal Oil -2,500,000. intents to holding for a
Bonded 00 long-term
Trade Co.,
Ltd.
-2,500,000.
Total
00
(10) Investment real estate
1. Investment real estate measured at cost
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深圳南山热电股份有限公司 2020 年半年度报告全文
House and building Land use Construction in
Item Total
right progress
1. Original book value
(1) Year-end balance of last year 9,708,014.96 9,708,014.96
(2) Current increased
(3) Current decreased
(4) Ending Balance 9,708,014.96 9,708,014.96
2. Accumulated depreciation and -
accumulated amortization
(1) Year-end balance of last year 7,306,687.96 7,306,687.96
(2) Current increased 98,068.80 98,068.80
—Accrual or amortization 98,068.80 98,068.80
(3) Current decreased - -
(4) Book balance 7,404,756.76 7,404,756.76
3. Depreciation provision
(1) Year-end balance of last year
(2) Current increased
(3) Current decreased
(4) Book balance
4. Book value
(1) Period-end book value 2,303,258.20 2,303,258.20
(2) Year-begin book value 2,401,327.00 2,401,327.00
(11) Fixed assets
1. Fixed assets and disposal of fixed assets
Item Ending Balance Year-end balance of last year
Fixed assets
954,992,268.00 1,381,675,872.68
Disposal of fixed assets
Total 954,992,268.00 1,381,675,872.68
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深圳南山热电股份有限公司 2020 年半年度报告全文
2. Fixed assets
House and Machinery Transportation Other
Item Total
buildings equipment tools equipment
I. Original book value
501,321,101.48 4,079,001,987.60 16,336,684.19 55,807,562.91 4,652,467,336.18
1. Opening balance
2. Increased in the
3,270,619.85 71,238.94 873,334.63 4,215,193.42
year
990,572.85
(1) Purchase 823,506.59 167,066.26
(2) Construction in
3,224,620.57
2,447,113.26 71,238.94 706,268.37
progress transfer-in
(3) Increase in
business combination
3. Decreased in the
990,942,182.58
75,311,278.51 912,852,652.58 1,677,249.73 1,101,001.76
year
(1) Disposal or
0.00 11,100.00 11,100.00
scrapping
(2) Reduction of
1,677,249.73 1,089,901.76 990,931,082.58
consolidation scope 75,311,278.51 912,852,652.58
changes
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深圳南山热电股份有限公司 2020 年半年度报告全文
House and Machinery Transportation Other
Item Total
buildings equipment tools equipment
426,009,822.97 3,169,419,954.87 14,730,673.40 55,579,895.78 3,665,740,347.02
4. Ending Balance
II. Accumulated
depreciation
308,704,855.95 2,768,225,963.03 9,246,358.34 43,480,376.06 3,129,657,553.38
1. Opening balance
2. Increased in the
5,651,134.50 18,473,218.63 726,108.03 954,942.33 25,805,403.49
year
5,651,134.50 18,473,218.63 726,108.03 954,942.33 25,805,403.49
(1) Accrual
3. Decreased in the
44,544,371.88 505,772,982.44 1,268,277.91 780,774.36 552,366,406.59
year
(1) Disposal or
9,990.00 9,990.00
scrapping
(2) Reduction of
1,268,277.91 770,784.36 552,356,416.59
consolidation scope 44,544,371.88 505,772,982.44
changes
269,811,618.57 2,280,926,199.22 8,704,188.46 43,654,544.03 2,603,096,550.28
4. Book balance
III. Impairment
provision
14,860,025.13 126,273,884.99 141,133,910.12
1. Opening balance
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深圳南山热电股份有限公司 2020 年半年度报告全文
House and Machinery Transportation Other
Item Total
buildings equipment tools equipment
2. Increased in the
year
(1) Accrual
3. Decreased in the
33,482,381.38
5,059,785.83 28,422,595.55
year
(1) Disposal or
scrapping
(2) Reduction of
33,482,381.38
consolidation scope 5,059,785.83 28,422,595.55
changes
9,800,239.30 97,851,289.44 107,651,528.74
4. Book balance
IV. Book value
(1) Closing book
146,397,965.10 790,642,466.21 6,026,484.94 11,925,351.75 954,992,268.00
value
(2) Opening book
177,756,220.40 1,184,502,139.58 7,090,325.85 12,327,186.85 1,381,675,872.68
value
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深圳南山热电股份有限公司 2020 年半年度报告全文
3. Idle fixed assets temporary
Original book Accumulated Impairment
Item Book value Note
value depreciation provision
Housing &
127,893,412.10 98,010,753.95 13,948,439.04 15,934,219.11
buildings
Machinery
523,528,339.27 452,630,912.68 32,087,951.59 38,809,475.00
equipment
Transportation 256,300.00 230,670.00 25,630.00
equipment
Total 651,678,051.37 550,872,336.63 46,036,390.63 54,769,324.11
4. No fixed assets acquired by financing lease
5. No fixed assets acquired by operating lease
6. Fixed assets without property rights certificate
Reasons for failing to complete the
Item Book value
property rights certificate
Booster station 3,962,705.44 Procedures uncompleted
Steam turbine workshop 1,437,359.56 Procedures uncompleted
Chemical water tower 2,363,171.86 Procedures uncompleted
Treatment shop for heavy oil 464,359.97 Procedures uncompleted
Start-up boiler house 104,559.07 Procedures uncompleted
Fire pump room 242,318.01 Procedures uncompleted
Circulating water pump house 1,520,701.82 Procedures uncompleted
Comprehensive building 2,589,240.59 Procedures uncompleted
Production and inspection
4,396,371.57 Procedures uncompleted
building
Administrative building 4,520,121.49 Procedures uncompleted
Mail room of the main entrance 183,112.49 Procedures uncompleted
Chemical water treatment
232,960.00 Procedures uncompleted
workshop
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深圳南山热电股份有限公司 2020 年半年度报告全文
673,259.25 Procedures uncompleted
Cooling tower
Comprehensive building canteen 276,091.29 Procedures uncompleted
Comprehensive building 443,246.19 Procedures uncompleted
23,409,578.60
Total
(12) Construction in progress
1. Construction in progress and Engineering materials
Item Ending Balance Year-end balance of last year
Construction in progress 60,831,928.29 66,474,630.23
Engineering materials
Total 60,831,928.29 66,474,630.23
2. Construction in progress
Ending Balance Year-end balance of last year
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Cogeneratio
57,946,875.6 57,946,875.6 63,151,182.6 63,151,182.6
n
3 3 4 4
Oil to Gas
13,230,574.5 13,230,574.5 32,871,600.2 32,871,600.2
Works
3 3 6 6
Technical
2,217,378.76 2,217,378.76 3,061,557.07 3,061,557.07
innovation
Other
667,673.90 667,673.90 261,890.52 261,890.52
74,062,502.8 13,230,574.5 60,831,928.2 99,346,230.4 32,871,600.2 66,474,630.2
Total
2 3 9 9 6 3
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深圳南山热电股份有限公司 2020 年半年度报告全文
3. Changes of significant projects in construction in the year
Proportion
Reduction of Accumulati
Transferred Including: Rate of
Increase of Other accumulat Project ve amount
Opening fixed assets Closing capitalizati interest Capital
Item Budget of this consolidati decrease in balance ive project progress of
balance in this on of capitalizat sources
period on scope the period investmen (%) capitalizatio
period interest ion (%)
changes t in budget n of interest
(%)
Self-rais
Cogenerat ed and
60,000,000. 63,151,182. 5,250,178 57,946,875 6,476,185
45,871.71 96.58
ion 00 64 .72 .63 .46
borrowi
ng
Oil to Gas Self-rais
74,400,000. 32,871,600. 19,641,025 13,230,574
63.76 63.76
Works 00 26 .73 .53
ed
Technical Not
innovatio 3,061,557.0 1,066,319 1,910,498 2,217,378. Not Self-rais
7 .79 .10 76 applica
n applicable ed
ble
Other 1,719,905 1,314,122 Self-rais
261,890.52 667,673.90
.85 .47
ed
134,400,00 99,346,230. 2,832,097 3,224,620 5,250,178 19,641,025 74,062,502 6,476,185
Total 0.00 49 .35 .57 .72 .73 .82 .46
74
深圳南山热电股份有限公司 2020 年半年度报告全文
4. No accrual of impairment provision for Construction in progress in the period
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深圳南山热电股份有限公司 2020 年半年度报告全文
(13) Intangible assets
1. Intangible assets
Item Land use right Software Total
I. Original book value
91,355,995.46 3,577,588.80
1. Opening balance 94,933,584.26
2. Increased in the year -
(1) Purchase - -
3. Decreased in the year
30,542,000.70 - 30,542,000.70
(1) Reduction of
consolidation scope 30,542,000.70 - 30,542,000.70
changes
4. Ending Balance 60,813,994.76 3,577,588.80 64,391,583.56
II. Accumulated
depreciation
48,080,331.33 3,251,086.49
1. Opening balance 51,331,417.82
2. Increased in the year 388,916.55 97,067.10 485,983.65
388,916.55 97,067.10 485,983.65
(1) Accrual
3. Decreased in the year 8,759,936.73 - 8,759,936.73
(1) Reduction of
consolidation scope 8,759,936.73 - 8,759,936.73
changes
39,709,311.15 3,348,153.59 43,057,464.74
4. Book balance
III. Impairment
provision
- - -
1. Opening balance
2. Increased in the year
- - -
(1) Accrual
3. Decreased in the year
- - -
(1) Disposal
- - -
4. Book balance
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深圳南山热电股份有限公司 2020 年半年度报告全文
IV. Book value
21,104,683.61 229,435.21 21,334,118.82
(1) Closing book value
43,275,664.13 326,502.31 43,602,166.44
(2) Opening book value
2. Land use rights without property rights certificate
Reasons for failing to
Item Book value complete the property rights
certificate
Land use right of the wharf and pipe 530,733.25 Property rights certificate is
gallery undergoing
(14) Long-term deferred expenses
Current increased Amortized in the
Item Year-end balance Other decrease
amount Period Book balance
of last year
Exhibition hall 1,174,171.16 125,971.38 1,048,199.78
decoration
amount
(15) Deferred income tax assets and deferred income tax liabilities
1. Deferred income tax assets without offsetting
Ending Balance Year-end balance of last year
Deductible
Item Deductible Deferred income Deferred income
temporary
temporary difference tax assets tax assets
difference
Bad debt provision for 5,628,573.77 1,400,153.44
account receivable 5,628,573.77 1,400,153.44
Bad debt provision for
723,585.00 180,896.25
other receivable
723,585.00 180,896.25
Changes in fair value of
other equity instrument 2,500,000.00 625,000.00
investments 2,500,000.00 625,000.00
Other
Total 8,852,158.77 2,206,049.69 8,852,158.77 2,206,049.69
(16) Other non-current assets
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深圳南山热电股份有限公司 2020 年半年度报告全文
Ending Balance Year-end balance of last year
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserve reserve
Project of
22,882,181.78 22,882,181.78
LNG
Total 22,882,181.78 22,882,181.78
(17) Short-term loans
1. Classification
Year-end balance
Item Ending Balance
of last year
Guarantee loans 300,000,000.00
Credit loans 754,233,285.00 580,000,000.00
Accrued interest 1,246,849.11 1,075,378.48
Total 755,480,134.11 881,075,378.48
(18) Account payable
1. Account payable
Year-end balance of
Item Ending Balance
last year
Materials 2,854,019.71 12,180,417.48
Electricity 1,884,315.07 1,760,985.99
Labor 6,101,200.00 3,102,530.32
Others 2,521,658.17 2,827,168.62
Total 13,361,192.95 19,871,102.41
2. There is no major amount payable with over one year age at end of the period
(19)Payroll payable
1. Payroll payable
Year-end balance Current
Item Current increased Ending Balance
of last year Decreased
Short-term remuneration 54,801,004.42 57,502,762.80 73,035,130.07 39,268,637.15
Post-employment 407,428.11 6,482,783.84 5,113,650.54 1,776,561.41
78
深圳南山热电股份有限公司 2020 年半年度报告全文
Year-end balance Current
Item Current increased Ending Balance
of last year Decreased
welfare-defined contribution
plans
Severance Pay
Other welfare due within one
year
Total 55,208,432.53 63,985,546.64 78,148,780.61 41,045,198.56
2. Short-term remuneration
Year-end balance Current
Item Current increased Book balance
of last year Decreased
(1) Wages,bonuses, allowancesand 53,579,116.98 44,870,304.70 59,821,822.13 38,627,599.55
subsidies
(2) Welfare for workers and 63,050.00 413,654.74 378,393.74 98,311.00
staff
(3) Social insurance
199,344.99 2,418,356.33 2,569,608.69 48,092.63
Including: Medical 167,818.74 2,351,191.23 2,476,620.10 42,389.87
insurance
Work injury 13,139.34 7,859.44 20,962.00 36.78
insurance
Maternity 18,386.91 59,305.66 72,026.59 5,665.98
insurance
(4) Housing accumulation fund 614,780.58 9,085,609.07 9,549,296.93 151,092.72
(5) Labor union expenditure 344,711.87 714,837.96 716,008.58 343,541.25
and personnel education
expense
Total 54,801,004.42 57,502,762.80 73,035,130.07 39,268,637.15
3. Defined contribution plans
Year-end balance Current
Item Current increased Book balance
of last year Decreased
79
深圳南山热电股份有限公司 2020 年半年度报告全文
Year-end balance Current
Item Current increased Book balance
of last year Decreased
Basic endowment insurance 394,280.13 3,829,721.67 4,201,766.55 22,235.25
Unemployment insurance 12,849.98 22,162.21 34,888.99 123.20
Enterprise annuity 298.00 2,630,899.96 876,995.00 1,754,202.96
Total 407,428.11 6,482,783.84 5,113,650.54 1,776,561.41
(20) Taxes payable
Year-end balance of
Item Ending Balance
last year
Enterprise income tax 475,248.33 3,407,074.02
Real estate tax 1,957,956.15 996,166.86
Individual income tax 1,043,897.37 1,550,858.52
Land-use tax of town 452,439.30
VAT 7,538,071.86 15,053,172.64
Other 357,269.39 762,001.73
Total 11,824,882.40 21,769,273.77
(21) Other account payable
Item Ending Balance Year-end balance of last year
Interest payable
Dividends payable
Other account payable
34,163,258.96 43,691,472.06
Total 34,163,258.96 43,691,472.06
1. Other account payable
(1) Other payable by nature
Year-end balance of
Item Book balance
last year
Engineering funds 11,861,176.64 13,045,165.88
Quality assurance 6,633,006.27 6,825,475.53
80
深圳南山热电股份有限公司 2020 年半年度报告全文
Year-end balance of
Item Book balance
last year
Accrued expenses 10,143,950.69 10,301,185.40
Equipment fund 3,718,050.65
Other 5,525,125.36 9,801,594.60
Total 34,163,258.96 43,691,472.06
(2) Other account payable of more than one year is of 18,271,785.62 Yuan (December 31, 2019:
18,303,816.84 Yuan), which is mainly the engineering equipment fund payable and guarantee
money.
(22) Accrual liability
Year-end balance of last
Item Book balance Reason
year
Guarantee offering outside 26,646,056.28 26,646,056.28
Total 26,646,056.28 26,646,056.28
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 by the Group. The costs for lawyers from 2014 to June 2020 and the costs for problem left over by
history amounting to 853,943.72 Yuan, ending balance amounted as 26,646,056.28 Yuan.
(23) Deferred income
Year-end balance of Current
Item Current increased Ending Balance Reasons
last year decreased
Government 108,507,683.52 11,549,926.48 96,957,757.04
subsidy
Items with government subsidy involved:
81
深圳南山热电股份有限公司 2020 年半年度报告全文
Reducti
on of
Liability Subsidy amount Amount included Assets
Opening consoli
newly increased in in current profit Book balance related/income
balance dation
the current period and loss related
scope
changes
Subsidy for
low-nitrogen 3,736,
25,165,130.64 261,374.29 21,167,001.60 Assets related
754.75
transformation
Information
86,666.60 30,588.24 56,078.36 Assets related
construction
Support fund of
recycling
7,451,273.95 323,501.46 7,127,772.49 Assets related
economy for
sludge drying
Treasury subsidies
2,826,250.00 127,500.00 2,698,750.00 Assets related
for sludge drying
Special funds for
energy
conservation and 684,223.30 57,018.66 627,204.64 Assets related
emission
reduction
Funded of energy
efficiency
401,760.00 17,280.00 384,480.00 Assets related
improvement for
electric machine
Subsidy for
quality promotion
of the air 67,262,379.03 2,365,909.08 64,896,469.95 Assets related
environment in
Shenzhen
Cogeneration 4,630,
4,630,000.00 Assets related
000.00
8,366,
Total 108,507,683.52 3,183,171.73 96,957,757.04
754.75
(24) Share capital
Changes in this period(+ -) Ending Balance
Year-end balance
Item New shares Bonus Capitalizing
of last year Other Subtotal
issued shares from reserves
82
深圳南山热电股份有限公司 2020 年半年度报告全文
Changes in this period(+ -) Ending Balance
Year-end balance
Item New shares Bonus Capitalizing
of last year Other Subtotal
issued shares from reserves
Total shares 602,762,596.00 602,762,596.00
(25) Capital reserve
Year-end balance of last Current Current
Item Book balance
year increased decreased
Capital premium
（Share 233,035,439.62 233,035,439.62
premium）
Other capital
129,735,482.48 129,735,482.48
reserve
Total 362,770,922.10 362,770,922.10
83
深圳南山热电股份有限公司 2020 年半年度报告全文
(26) Other comprehensive income
Current period
Less: written in
other
comprehensive
Year-end Belong to
Account before income in
Item balance of last Less : income tax Belong to parent minority Book balance
income tax in the previous period
year expense company after tax shareholders after
year and carried
tax
forward to gains
and losses in
current period
1. Other comprehensive income items which will not
-2,500,000.00 -2,500,000.00
be reclassified subsequently to profit of loss
Including: changes of the defined benefit plans that
re-measured
Other comprehensive income under equity
method that cannot be transfer to gain/loss
Change of fair value of investment in other
-2,500,000.00 -2,500,000.00
equity instrument
Fair value change of enterprise's credit risk
84
深圳南山热电股份有限公司 2020 年半年度报告全文
Current period
Less: written in
other
comprehensive
Year-end Belong to
Account before income in
Item balance of last Less : income tax Belong to parent minority Book balance
income tax in the previous period
year expense company after tax shareholders after
year and carried
tax
forward to gains
and losses in
current period
2. Other comprehensive income items which will be
reclassified subsequently to profit or loss
including: other comprehensive income under equity
method that can transfer to gain/loss
Change of fair value of other debt investment
Amount of financial assets re-classify to other
comprehensive income
Credit impairment provision for other debt
investment
Cash flow hedging reserve
85
深圳南山热电股份有限公司 2020 年半年度报告全文
Current period
Less: written in
other
comprehensive
Year-end Belong to
Account before income in
Item balance of last Less : income tax Belong to parent minority Book balance
income tax in the previous period
year expense company after tax shareholders after
year and carried
tax
forward to gains
and losses in
current period
Translation differences arising on translation of
foreign currency financial statements
Total other comprehensive income -2,500,000.00 -2,500,000.00
86
深圳南山热电股份有限公司 2020 年半年度报告全文
(27) Surplus reserve
Year-end balance of
Item Current increased Current decreased Book balance
last year
Legal surplus reserve 310,158,957.87 310,158,957.87
Discretionary surplus
22,749,439.73 22,749,439.73
reserve
Total 332,908,397.60 332,908,397.60
Note: according to the Company Law and the Articles of Association, the Company takes 10% of the net profit
aside as legal surplus reserve. No more provision is made when the accumulated legal surplus reserve exceeds 50%
of the registered capital.
After provision for legal surplus reserve, the Company can make provision for other surplus reserve. As approved,
other surplus reserve can be used to make up for previous loss or increase share capital.
(28) Retained profit
Year-end balance of last
Item Current amount
year
Retained profit of last year before adjusted 706,830,892.54 679,429,935.81
Total retained profit adjusted (increased with +, 2,500,000.00
decreased with -)
Retained profit at beginning of the year after adjusted 706,830,892.54 681,929,935.81
Add: net profit attributable to shareholders of parent 52,040,498.42 24,900,956.73
company
Less: withdrawal of statutory surplus reserve
Surplus reserves withdrawal
General risk reserve withdrawal
Common Stock dividend payable 12,055,251.92
Dividend of common shares transfer as share capital
Retained profit at period-end 746,816,139.04 706,830,892.54
(29) Operating income and operating cost
Item Current amount Last-period amount
87
深圳南山热电股份有限公司 2020 年半年度报告全文
Income Cost Income Cost
Main business 516,766,342.40 453,011,367.34 407,283,308.09 382,899,068.89
Other business 1,384,263.81 98,068.80 841,308.29 98,068.80
Total 518,150,606.21 453,109,436.14 408,124,616.38 382,997,137.69
(30) Tax and surcharge
Item Current amount Last-period amount
City maintenance tax 1,383,140.70 347,935.14
Education surtax 994,801.55 239,773.87
Real estate tax 1,208,396.49 1,299,068.45
Stamp tax 249,088.14 223,246.10
Environmental protection tax 52,684.43 71,377.28
Land holding tax 528,926.56 622,976.03
2,070.82 21,056.56
Other
4,419,108.69 2,825,433.43
Total
(31) Sales expense
Item Current amount Last-period amount
Sludge treatment costs
1,759,061.64 2,091,758.08
Salary, welfare and social insurance
483,096.28 211,222.62
Communication expenses 3,600.00 3,600.00
Social expenses
102,828.00 115,344.00
Fleet cost
14,862.00 15,559.00
Inspection charges
8,254.72 5,707.55
Labor insurance fee
12,146.33 10,530.68
Rental fee
14,400.00 14,400.00
Property insurance
55,981.53 49,130.74
Agency engagement fee
49,056.60 37,735.85
Other 24,116.56 11,281.00
Total 2,527,403.66 2,566,269.52
88
深圳南山热电股份有限公司 2020 年半年度报告全文
(32) Administration expense
Item Current amount Last-period amount
Wages
22,642,057.64 23,892,967.48
Rental fee
3,190,390.04 3,288,377.42
Social expenses
1,215,245.44 1,532,058.32
Intermediary agency fee 769,240.68 1,231,759.70
Fleet cost
1,544,894.98 1,007,200.26
Board charges
643,383.04 588,713.32
Depreciation 3,219,527.40 2,735,952.70
Amortization of intangible assets
438,195.11 924,080.54
Environmental protection fee 112,454.45 985,970.24
Food fee 1,683,299.91 1,636,173.21
Corporate culture fee
466,986.30 416,397.26
Property management fee
476,391.32 473,682.63
Office fee
451,606.20 351,693.34
Communication expenses
584,900.66 555,998.52
Business travel expenses
150,697.01 309,115.10
Fee for stock certificate
268,361.53 86,822.94
Union funds 296,122.92 303,547.56
Employee education expenses 25,496.98 55,175.25
Other 4,857,620.54 4,556,178.71
Total 43,036,872.15 44,931,864.50
(33) Financial expense
Item Current amount Last-period amount
Interest expenses
18,800,827.68 23,542,971.21
Less: capitalized interest
613,068.55
Expenses interest
18,187,759.13 23,542,971.21
Less: interest income
13,142,285.32 13,189,605.67
89
深圳南山热电股份有限公司 2020 年半年度报告全文
Item Current amount Last-period amount
Exchange loss (gains is listed with ”-”)
-56,923.92 -6,301.58
Other
76,172.31 292,203.46
Total 5,064,722.20 10,639,267.42
(34) Other Income
Item Current amount Last-period amount
Government grants 8,588,818.18 4,962,155.46
Additional deduction on input tax
Commission for withholding the individual income tax 166,718.37
Income from debt restructuring
Total 8,755,536.55 4,962,155.46
Government subsidies included in other income
Current Last-period Asset related /
Item
amount amount income related
Special Fund Subsidy for Shenzhen Atmospheric 2,365,909 1,201,651.5 Asset related
Environmental Quality Improvement .08 4
Subsidy for low-nitrogen transformation 261,374.2 251,403.55 Asset related
9
Enterprise information construction project funding 30,588.24 30,588.24 Asset related
Subsidies for energy-saving technological transformation 57,018.66 57,018.66 Asset related
projects
Treasury subsidies for sludge drying 127,500.0 127,500.00 Asset related
0
Support fund of recycling economy for sludge drying 323,501.4 323,501.46 Asset related
6
Funded of energy efficiency improvement for electric machine
17,280.00 17,280.00 Asset related
1,753,212.0 Income related
VAT rebates
1,134,065 1
.17
Unemployment insurance refund of affected enterprises - Income related
90
深圳南山热电股份有限公司 2020 年半年度报告全文
Current Last-period Asset related /
Item
amount amount income related
4,171,581
.28
Subsidies for further steady growth of funding projects Income related
100,000.0
0
Income related
Supporting funds of office occupancy for listed companies
1,000,000.0
0
Reward to encouraging small and medium-sized enterprise to
Income related
growth as a scale-sized company
200,000.00
Total 8,588,818 4,962,155.4
.18 6
(35) Investment income
Current Last-period
Item
amount amount
Long-term equity investment income by equity -243,622.43 -677,552.37
Investment income from disposal of long-term investments 33,534,881.55
Total 33,291,259.12 -677,552.37
(36)Income from disposal of assets
Current Last-period Amount reckoned into non-recurring
Item
amount amount gains/losses of the Period
Profit and loss on disposal of fixed
-417,926.32
assets
Profit and loss on disposal of 828,535.6
828,535.66
construction in process 6
Total 828,535.6
-417,926.32 828,535.66
6
(37) Non-operating revenue
91
深圳南山热电股份有限公司 2020 年半年度报告全文
Amount reckoned into
non-recurring
Item Current amount Last-period amount
gains/losses of the
Period
Sales of waste materials 98,666.50
Other
4,753.84 4,500.00 4,753.84
Total 4,753.84 103,166.50 4,753.84
(38) Non-operating expenditure
Amount reckoned into
non-recurring
Item Current amount Last-period amount
gains/losses of the
Period
External donation 10,000.00 10,000.00
Loss of scrap from non-current 1,110.00 1,110.00
assets
Other
46,124.97
Total 11,110.00 46,124.97 11,110.00
(39) Income tax expense
Item Current amount Last-period amount
Current income tax calculated in
accordance with tax laws and related 610,366.52 1,157,865.76
regulations
(40) Cash flow statement
1. Cash received with other operating activities concerned
Item Current amount Last-period amount
Government subsidy collected 4,688,786.13 39,297,273.00
Intercourse funds collected 13,431,789.29
Interest income 10,929,678.85 12,982,668.91
92
深圳南山热电股份有限公司 2020 年半年度报告全文
Other
6,887,829.91 4,321,781.62
Total
22,506,294.89 70,033,512.82
2. Other cash paid in relation to operation activities
Item Current amount Last-period amount
Hiring intermediary agency fee 769,240.68 1,231,759.70
Board fee 643,383.04 588,713.32
Rental fees 3,850,120.43 3,762,060.05
Communication fee 1,215,245.44 1,532,058.32
Fleet cost 1,544,894.98 1,007,200.26
Corporate culture fee 466,986.30 416,397.26
Communication fee 584,900.66 555,998.52
Environmental protection fee 112,454.45 985,970.24
Other 11,968,246.77 16,424,022.91
Total 21,155,472.75 26,504,180.58
3. Cash received from other investment activities
Item Current amount Last-period amount
Repayment of loan from Huidong Serve 800,000.00
4. Other cash paid related to investment activities
Item Current amount Last-period amount
The cash difference bewteen the cash balance of
Shen Nan Dian (Dongguan) Weimei Electric Power
12,577,163.02
Co., Ltd and the cash received from the disposal of
the equity on the date when disposing
5. Other cash received in relation to financing activities
Item Current amount Last-period amount
Margin received 7,303,338.86
Received a loan from Shenzhen Gas Group Co., Ltd. 170,000,000.00
Total 170,000,000.00 7,303,338.86
93
深圳南山热电股份有限公司 2020 年半年度报告全文
(41) Supplementary information to statement of cash flow
1. Supplementary information to statement of cash flow
Supplementary information Current amount Last-period amount
1. Net profit adjusted to cash flow of operation activities
Net profit 52,251,672.02 -33,069,503.64
Add: Assets impairment provision
Depreciation of fixed assets
25,805,403.49 44,801,828.95
Amortization of intangible assets 485,983.65 1,232,100.02
Amortization of long-term deferred expenses 125,971.38 22,548.81
Loss from disposing fixed assets, intangible assets and
-828,535.66 417,926.32
other long-term assets (income)
Loss on retirement of fixed assets
Financial expense (income) 18,800,827.68 23,542,971.21
Investment loss (income) 33,291,259.12 677,552.37
Decrease of deferred income tax asset( (increase)
Decrease of inventory (increase) 16,132,545.39 278,786.02
Decrease of operating receivable accounts (increase) -18,919,356.88 4,043,360.79
Increase of operating payable accounts (decrease) -57,209,208.73 14,269,806.04
Net cash flow arising from operating activities 69,936,561.46 56,217,376.89
2. Material investment and financing not involved in cash
flow
Debt capitalization
Convertible company bond due within one year
Fixed assets acquired under finance leases
3. Net change of cash and cash equivalents:
Closing balance of cash and cash equivalent 1,084,903,966.81 1,029,883,840.43
Less: Opening balance of cash and cash equivalent 771,490,000.96 914,956,611.70
Net increasing of cash and cash equivalents 313,413,965.85 114,927,228.73
94
深圳南山热电股份有限公司 2020 年半年度报告全文
2. Composition of cash and cash equivalent
Year-end balance of last
Item Book balance
year
I. Cash 324,903,966.81 381,490,000.96
Including: Cash on hand 65,138.88 84,307.60
Bank savings available for payment needed 317,274,657.16 381,339,856.01
Other monetary capital available for payment needed 7,564,170.77 65,837.35
Account due from central bank available for payment
Amount due from banks
Amount call loans to banks
II. Cash equivalent 760,000,000.00 390,000,000.00
including: bond investment due within three months
III. Balance of cash and cash equivalent at period-end 1,084,903,966.81 771,490,000.96
Including: Cash and cash equivalent of the parent company
or subsidiaries with use restricted
(42) Foreign currency
1. Foreign currency
Balance of foreign Balance of RMB converted
Item Conversion rate
currency at period-end at period-end
Monetary fund
Including: USD 840,153.18 7.08 5,947,607.19
HKD 976.71 7.96 7,775.59
Euro 466,204.75 0.91 425,833.72
SGD 5,558.03 5.08 28,242.02
VI. Change of consolidate scope
1. Disposal of subsidiary
Equity Basis for Consolidated
Equity Time point
Name of Equity disposal disposal determining the statement level
disposal of loss of
subsidiary price ratio time point of loss corresponding to
method control
(%) of control disposal price and
95
深圳南山热电股份有限公司 2020 年半年度报告全文
disposal
investment enjoys
the difference of
the subsidiary’s net
asset share
The sale has been
approved by the
general meeting of
shareholders, more
Shen Nan
than 50% of the
Dian
disposal payment
(Dongguan) Assignment
has been received,
Weimei 104,980,000.00 70% by 2020/4/30 33,534,881.55
the equity transfer
Electric agreement
procedures have
Power Co.,
been completed,
Ltd
and the board of
directors has been
completely
replaced
Cont.
Amount of other
Gains or comprehensive
Book Fair value Determination
losses income related
Proportion of value of of the method and main
arising from to the equity
remaining remaining remaining assumptions of the
recalculating investment of
Name of equity on the equity on equity on fair value of the
subsidiary the the original
day of loss of the date of the date of remaining equity
remaining subsidiary that
control (%) loss of loss of on the date of loss
equity at fair transferred to
control control of control
value the investment
profit and loss
Shen Nan
Dian
(Dongguan)
Weimei N/A N/A N/A N/A N/A N/A
Electric
Power Co.,
Ltd
VII. Equity in other entity
(1) Equity in subsidiaries
1. Composition of the Group
Main Registration Business Shareholding ratio
Subsidiary Acquired way
operation place nature (%)
96
深圳南山热电股份有限公司 2020 年半年度报告全文
place Directly Indirectly
Shenzhen
Shenzhen Shenzhen Trading 50
Server (note) Establishment
Power
New Power Shenzhen Shenzhen 75 25
generation Establishment
Zhongshan
Power
Electric Zhongshan Zhongshan 55 25
generation Establishment
Power
Engineering Engineering
Shenzhen Shenzhen 60 40
Company consulting Establishment
Environment
Protection Shenzhen Shenzhen Engineering 70 30 Establishment
Company
Singapore
Singapore Singapore Trading 100
Company Establishment
Shenzhen
Zhongshan Zhongshan Storage 80
Storage Establishment
Under
Exp. & imp.
Syndisome Hong Kong Hong Kong 100 different
Trading
control
Note : The Company holds 50% equity of Shenzhen Server, and holds a majority of voting rights in the company's
board of directors at the same time. Therefore, the Company has substantive control over it, and it is included in
the consolidation scope of the consolidated financial statements.
2. Important non-wholly-owned subsidiary
Dividend
Gains/losses
announced to
Share-holding ratio attributable to Ending equity of
Subsidiary distribute for
of minority (%) minority in the minority
minority in the
Period
Period
Zhongshan Electric 20.00 2,788,481.06 -16,079,276.55
Power
97
深圳南山热电股份有限公司 2020 年半年度报告全文
3. Main finance of the important non-wholly-owned subsidiary
Ending Balance Year-end balance of last year
Subsidiar Non-cu
Current Non-curr Total Current Total Current Non-curren Current Non-curren Total
y rrent Total assets
assets ent assets assets liability liability assets t assets liability t liability liability
liability
Zhongsha 78,383,34 517,641,21 596,024,56 670,872,28 5,548,66 676,420,94 67,810,211.56 529,800,968. 597,611,180.0 686,312,294. 5,637,673.36 691,949,968.
n Electric 8.34 4.85 3.19 1.50 4.49 5.99 49 5 78 14
Power
Current amount Last-year amount
Total Cash flow from Total Cash flow from
Subsidiary Operation
Operation Income Net profit comprehensive operation Net profit comprehensive operation
Income
income activity income activity
Zhongshan Electric 85,765,596.92 13,942,405.29 13,942,405.29 31,248,237.34 66,364,051.74 -11,987,240.04 -11,987,240.04 30,421,274.57
Power
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深圳南山热电股份有限公司 2020 年半年度报告全文
(2) Equity in joint venture and cooperative enterprise
1. Major joint venture and cooperative enterprise
Share-holding ratio（%） Accounting
treatment on
Main
Registered Business investment for
Name operation
place nature Directly Indirectly joint venture and
place
cooperative
enterprise
Wharf 40.00
Huidong Server Huizhou Huizhou Equity method
operation
2. Financial summary for un-important joint venture or cooperative enterprise
Year-end balance of
Ending Balance
last year /Last-year
/Current amount
amount
Joint venture:
Total book value of the investment 14,375,580.60 14,619,203.03
Total numbers measured by
share-holding ratio
—Net profit -243,622.43 -677,552.37
—Other comprehensive income
—Total comprehensive income -243,622.43 -677,552.37
VIII. Risks relating to 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 V. 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.
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
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深圳南山热电股份有限公司 2020 年半年度报告全文
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.
(I) Credit risk
On 30 June 2020, 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:
Carrying value of financial assets recognized in consolidated balance sheet. As for financial instrument at fair
value, carrying value reflects its risk exposure, while not the largest risk exposure. The largest risk exposure will
vary as fair value changes in future.
In order to bring down credit risk, the Company establishes a special working team to take charge of determining
credit limit, making credit approval and implementing other monitor procedures to ensure necessary measures are
adopted to collect overdue debts. In addition, recovery of each single account receivable is reviewed on each
balance sheet date to ensure adequate bad debt provision is made for unrecoverable amount. Therefore,
management believes that the Company has substantially reduced the credit risks it assumes.
Our current capital is deposited with highly-rated banks, thus credit risk arising from current capital is relatively
low.
(II) Market risk
Market risks of financial instruments refers to the risks that the fair value or future cash flow of
such financial instruments will fluctuate due to the changes in market prices, including FX risks,
interest rate risks and other price risks.
1. Interest rate 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 Note V (16);
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 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:
Current year Last year
Rate
Impact on
Impact on profit Impact on shareholders’ equity Impact on profit
changes shareholders’ equity
5%
878,221.61 800,563.02 1,177,083.56 1,139,067.58
increased
100
深圳南山热电股份有限公司 2020 年半年度报告全文
Current year Last year
Rate
Impact on
Impact on profit Impact on shareholders’ equity Impact on profit
changes shareholders’ equity
5%
-878,221.61 -800,563.02 -1,177,083.56 -1,139,067.58
decreased
2. FX risks
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 30 June 2020, except for the balance of foreign currency monetary items
of 42. Foreign currency monetary in Note V, 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.
(III) 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.
IX. Related party and related party transactions
(1) Parent company of the Group
Share holding proportion of any shareholder of the Company didn't reach 50%, and couldn't form a holding
relationship of the Company through any methods. The Company has no parent company.
(2) Subsidiaries of the Company
See details in Note VII. Equity in other entity
(3) Joint venture and affiliated enterprise of the Group
See details in Note VII. Equity in other entity
(4) Other related party
Other related party Relationship with the Company
Shenzhen Energy Group Co., Ltd. (“Shenzhen Energy Legal person holding more than 5% of the company's
Group” for short) shares
Shenzhen Guangju Industrial Co., Ltd. Legal person holding more than 5% of the company's
shares
HONG KONG NAM HOI (INTERNATIONAL) Legal person holding more than 5% of the company's
LTD. shares
Shenzhen Capital Co., Ltd. Legal person indirectly holding more than 5% of the
company's shares through Shenzhen Energy Group
101
深圳南山热电股份有限公司 2020 年半年度报告全文
Other related party Relationship with the Company
Wanhe Securities Co., Ltd. Other related parties
Shenzhen Energy Group Co., Ltd. Other related parties
Fuel branch of Shenzhen Energy Group Co., Ltd. Other related parties
Shenzhen Energy and Gas Investment Holding Co., Other related parties
Ltd.
Directors, supervisors and senior management of the Key managers
company
(5) Receivable/payable items of related parties
1. Receivable
Ending Balance Year-end balance of last year
Item Related party Book balance Bad debt Book balance Bad debt
provision provision
Other account
receivable
Huidong Server 8,432,761.42 9,060,361.44
Huidong Server 13,243,635.56 13,114,012.69
managed account
Total 21,676,396.98 22,174,374.13
X. Government subsidies
(1) Government subsidies related to assets
The amount included in current Item of the
Type Amount Balance sheet gain/loss or loss resulting from amount
related costs off-setting included in
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深圳南山热电股份有限公司 2020 年半年度报告全文
current
gain/loss or
Current loss resulting
Last amount
amount from related
costs
off-setting
Subsidy for low-nitrogen
43,032,780. Deferred 261,374.29 251,403.55 Other
transformation
00 income income
Information
520,000.00 Deferred 30,588.24 30,588.24 Other
construction
income income
Support fund of recycling economy
10,000,000. Deferred 127,500.00 127,500.00 Other
for sludge drying
00 income income
Treasury subsidies for sludge drying 5,100,000.0 Deferred 323,501.46 323,501.46 Other
0 income income
Special funds for energy
1,530,000.0 Deferred 57,018.66 57,018.66 Other
conservation and emission reduction
0 income income
Funded of energy efficiency
518,400.00 Deferred 17,280.00 17,280.00 Other
improvement for electric machine
income income
Subsidy for quality promotion of the
70,977,273. Deferred 2,365,909.08 1,201,651.54 Other
air environment in Shenzhen
00 income income
131,678,453 3,183,171.73 2,008,943.45
Total
.00
(2) Government subsidies related to income
The amount included in Item of the amount
current gain/loss or loss included in current
resulting from related costs gain/loss or loss
Type Amount
off-setting resulting from
Current Last related costs
amount amount off-setting
VAT refund 1,134,065.1 1,753,212. Other
1,134,065.
7 01
17
income
103
深圳南山热电股份有限公司 2020 年半年度报告全文
The amount included in Item of the amount
current gain/loss or loss included in current
resulting from related costs gain/loss or loss
Type Amount
off-setting resulting from
Current Last related costs
amount amount off-setting
Unemployment insurance refund of affected 4,171,581.2 Other
4,171,581.
enterprises 8
28
income
Subsidies for further steady growth of funding Other
100,000.00
projects 100,000.00
income
Office housing support funds for listed 1,000,000. Other
companies 00
income
Other
Encourage SMEs to scale up rewards
200,000.00
income
Total 5,405,646. 5,405,646.4 2,953,212.
45 5 01
XI. Commitment and Contingency
(1) Major Commitment
Nil
(2) Contingency
Nil
XII. Events Occurring after the Balance Sheet Date
On March 5 and March 23, 2020, the Eleventh Extraordinary Meeting of the Company’s Eighth
Board of Directors and the 2020 First Extraordinary General Meeting of Shareholders under the
name of Shenzhen Nanshan Power Co., Ltd (hereinafter referred to as the Company) respectively
reviewed and approved the Proposal on the Agreement to Transfer 70% Equity of Shen Nan Dian
(Dongguan) Weimei Electric Power Co., Ltd.", agreeing to transfer 70% equity of Shen Nan Dian
Dongguan Company directly and indirectly held by the company to Shenzhen Gas Group Co., Ltd.
(hereinafter referred to as Shenzhen Gas) at a total price of 104.98 million yuan. According to the
equity transfer agreement signed between the company and Shenzhen Gas, after the company
received 40% of equity transfer fund, i.e. 59.99 million yuan, of Shen Nan Dian Dongguan
Company from Shenzhen Gas, Shen Nan Dian Dongguan Company has completed the industrial
and commercial change registration on April 9, 2020. Since then, the total loan of 300 million
104
深圳南山热电股份有限公司 2020 年半年度报告全文
yuan applied by Shen Nan Dian Dongguan Company from Bank of Ningbo Shenzhen Branch and
Industrial Bank Shenzhen Branch has been repaid, and the joint guarantee and liability guarantee
provided by the company for the above loan of Shen Nan Dian Dongguan Company has been
lifted; Shen Nan Dian Dongguan Company has fully repaid the principal and interest of the
company's 180 million yuan of financial assistance.
On July 2, 2020, the company's wholly-owned subsidiary Hong Kong Syndisome Co., Ltd.
received the remaining 30% equity transfer payment of 44.99 million yuan from Shenzhen Gas.
So far, the company has received all the equity transfer payments paid by Shenzhen Gas, and the
transfer of 70% equity of Shen Nan Dian Dongguan Company was completed.
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 the reportable segment
Power supply & heating Fuel trading Other Fuel trading
Item Total
Operation income 492,269,718.83 535,619.08 46,696,529.61 21,351,261.31 518,150,606.21
Operation cost 443,625,551.12 98,068.80 36,294,452.93 26,908,636.71 453,109,436.14
Total assets 3,739,501,185.55 121,784,714.52 346,595,525.59 1,156,333,540.24 3,051,547,885.42
Total liabilities 1,751,424,593.52 29,386,981.49 44,802,294.92 846,135,389.63 979,478,480.30
XIV. Note to main items of financial statements of the Company
(1) Account receivable
1. Age analysis
Account age Book balance Year-end balance of last year
Within one year
61,626,629.43 31,821,804.69
1 to 2 years
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深圳南山热电股份有限公司 2020 年半年度报告全文
Account age Book balance Year-end balance of last year
2 to 3 years
Over 3 years
2,889.00 2,889.00
Subtotal
61,629,518.43 31,824,693.69
Less: Bad debt provision
Total
61,629,518.43 31,824,693.69
2. According to accrual method for bad debts
Book balance
Book balance Bad debt provision
Category
Accrual
Proportion Book value
Amount Amount proportion
(%)
(%)
With single
provision for bad
debts
With bad debt
provision accrual
based on similar
credit risk
characteristics of a
portfolio 61,629,518.43 100.00 61,629,518.43
Total 61,629,518.43 100.00 61,629,518.43
Year-end balance of last year
Book balance Bad debt provision
A
Category P Book
Amou ccrual
roportion Amount value
nt proportion
(%)
(%)
With single provision for
bad debts
With bad debt provision 31,824,693.69 100 31,824,693.69
accrual based on similar
106
深圳南山热电股份有限公司 2020 年半年度报告全文
Year-end balance of last year
Book balance Bad debt provision
A
Category P Book
Amou ccrual
roportion Amount value
nt proportion
(%)
(%)
credit risk characteristics
of a portfolio
Total 31,824,693.69 100 31,824,693.69
3. No account receivable with single provision for bad debts
Provision for bad debts by portfolio：
Provision by portfolio：
Book balance
Name
Bad debt provision Accrual proportion (%)
Account receivable
With minor
61,629,518.43
credit risk
Recognition standards and specifications on provisions by portfolio:
The account receivable with provision for bad debts by portfolio mainly refers to the amount from
Shenzhen Power Supply Bureau Co., Ltd etc., which has minor credit risk and no provision for
bad debts.
4. No provision for bad debts in the current period
5. Top 5 receivables at ending balance by arrears party
Total period-end balance of top five receivables by arrears party amounting to 61,629,518.43 Yuan, takes 100
percent of the total account receivable at period-end, bad debt provision accrual correspondingly at period-end
amounting as 0 Yuan
6. No accounts receivable terminated recognition due to transfer of financial assets at the
period
(2) Other account receivable
Item Ending Balance Last year-end balance
Interest receivable
Dividend receivable
Other account receivable 660,835,522.34 873,861,071.55
Total 660,835,522.34 873,861,071.55
1. Other account receivable
(1) Disclosure by age
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深圳南山热电股份有限公司 2020 年半年度报告全文
Account age
Ending Balance Last year-end balance
Within one year
181,599,583.37 239,265,595.88
1 to 2 years
262,147,773.68 89,264,291.59
2 to 3 years
136,709,590.00 100,729,690.00
Over 3 years
107,708,218.73 471,931,137.52
Subtotal
688,165,165.78 901,190,714.99
Less: Bad debt provision
27,329,643.44 27,329,643.44
Total
660,835,522.34 873,861,071.55
(2) Disclosure by category
Book balance
Book balance Bad debt provision
Category
Accrual
Proportion Book value
Amount Amount proportion
(%)
(%)
With single
28,023,159.22 4.07 27,329,643.44 97.53 693,515.78
provision for bad
debts
With bad debt
provision accrual
based on similar
660,142,006.56 95.93 660,142,006.56
credit risk
characteristics of a
portfolio
Total 688,165,165.78 100.00 27,329,643.44 3.97 660,835,522.34
Year-end balance of last year
Book balance Bad debt provision
Category
Accrual
Proportion Book value
Amount Amount proportion
(%)
(%)
With single provision
28,023,159.22 3.11 27,329,643.44 97.53 693,515.78
for bad debts
108
深圳南山热电股份有限公司 2020 年半年度报告全文
Year-end balance of last year
Book balance Bad debt provision
Category
Accrual
Proportion Book value
Amount Amount proportion
(%)
(%)
With bad debt
provision accrual
based on similar
credit risk
characteristics of a
portfolio 873,167,555.77 96.89 873,167,555.77
Total 901,190,714.99 100.00 27,329,643.44 3.03 873,861,071.55
With single provision for bad debts:
Book balance
Name
Book amount Bad debt provision Accrual proportion (%) Causes
Huiyang
14,311,626.70 14,311,626.70 100.00 Un-collectable in excepted
Kangtai
Industrial
Company
Individual 2,470,039.76 2,470,039.76 100.00 Un-collectable in excepted
income tax
Dormitory 2,083,698.16 1,736,004.16 83.31 Some un-collectable in excepted
amount
receivable
Personal 7,498,997.87 7,498,997.87 100.00 Un-collectable in excepted
receivables
Deposit 1,658,796.73 1,312,974.95 79.15 Some un-collectable in excepted
receivable
Total 28,023,159.22 27,329,643.44 97.53
Provision for bad debts by portfolio:
Provision by portfolio:
Book balance
Name
Other account receivable Bad debt provision Accrual proportion (%)
109
深圳南山热电股份有限公司 2020 年半年度报告全文
Book balance
Name
Other account receivable Bad debt provision Accrual proportion (%)
With minor credit
660,142,006.56
risk
Recognition standards and specifications on provisions by portfolio:
The Company believes that the credit risk of other account receivable with no impairment in the single assessment
is relatively low, no provision for bad debts, unless there is evidence that a certain other account receivable is at
greater credit risk.
(3) Accrual of bad debt provision
Phases I Phases II Phases III
Expected credit Expected credit
losses for the losses for the
Expected credit
Bad debt provision entire duration entire duration Total
losses over next
(without credit (with credit
12 months
impairment impairment
occurred) occurred)
Balance at year-begin 27,329,643.44 27,329,643.44
Book balance of other
account receivable at
year-begin
——Turn to phase II
——Turn to phase III
——Return to Phase II
——Return to Phase I
Current accrual
Current switch back
Rewrite in the period
Write-off in the period
Other changes
Book balance 27,329,643.44 27,329,643.44
(4) No provision for bad debts in the current period
(5) No other accounts receivable that had actually written off in the period
110
深圳南山热电股份有限公司 2020 年半年度报告全文
(6) By nature
Nature Ending book balance Book balance at last year-end
Dormitory receivables 2,083,698.16 2,083,698.16
Deposit receivable 1,738,810.86 1,658,796.73
Related party transactions 656,170,887.94 866,978,723.13
Personal account 10,008,932.63 10,008,932.63
Other 18,162,836.19 20,460,564.34
Total 688,165,165.78 901,190,714.99
(7) Top 5 other account receivables at period-end listed by arrears party
Proportion in
Relationship Ending
total other
Name of the company with the Ending Balance Age balance of bad
account
Company debt provision
receivable(%)
Shen Nan Dian Intercourse 648,154,459.86 0-3 year, 94.19
(Zhongshan) Electric funds Over 3
Power Co., Ltd. years
Huiyang County Kangtai 14,311,626.70 Over 3 2.08 14,311,626.70
Other
Industrial Company years
Shenzhen Shennandian Intercourse 4,204,379.85 0.61
Within 1
Turbine Engineering funds
year
Technology Co., Ltd.
Shenzhen Shen Nan Intercourse 3,812,048.23 0.55
Within 1
Dian Environment funds
year
Protection Co., Ltd.
Intercourse 2,083,698.16 Over 3 0.30 1,736,004.16
Dormitory receivables
funds years
Total 672,566,212.80 97.73 16,047,630.86
(8) No receivables involving government subsidies
(9) No other receivables terminated recognition due to transfer of financial assets
111
深圳南山热电股份有限公司 2020 年半年度报告全文
(3) Long-term equity investment
Ending Balance Last year-end balance
Item Book Impairment Impairment
Book value Book balance Book value
balance provision provision
Investment 576,663,800.00 347,745,035.00 228,918,765.00 691,982,849.76 388,641,684.76 303,341,165.00
to
subsidiary
Investment
to joint
venture
and
affiliate
enterprise
Total 576,663,800.00 347,745,035.00 228,918,765.00 691,982,849.76 388,641,684.76 303,341,165.00
1. Investment to subsidiary
Impairment Period-end
Increase
The invested Last year-end Decrease in the Ending provision balance of
in the
entity balance period Balance accrual in depreciation
period
the Period reserves
Shenzhen 26,650,000.00 26,650,000.00
Server
New Power 71,270,000.00 71,270,000.00
Company
Zhongshan 410,740,000.00 410,740,000.00 347,745,035.00
Electric
Power
Engineering 6,000,000.00 6,000,000.00
Company
Weimei 115,319,049.76 115,319,049.76
Electric
Power
Singapore 6,703,800.00 6,703,800.00
112
深圳南山热电股份有限公司 2020 年半年度报告全文
Impairment Period-end
Increase
The invested Last year-end Decrease in the Ending provision balance of
in the
entity balance period Balance accrual in depreciation
period
the Period reserves
Company
Environment 55,300,000.00 55,300,000.00
Protection
Company
Total 691,982,849.76 115,319,049.76 576,663,800.00 347,745,035.00
(4) Operation revenue/operation cost
Current amount Last-period amount
Item
Revenue Cost Revenue Cost
Main business 118,119,714.73 133,626,167.32 127,282,753.58 166,390,507.99
Other business 27,647,300.61 4,310,751.77 38,231,297.65 5,937,627.54
Total 145,767,015.34 137,936,919.09 165,514,051.23 172,328,135.53
XV. Supplementary information
(1) Statement of non-recurring gains/losses
Item Amount Note
Gains and losses from disposal of non-current assets 34,363,417.21
Tax refund or mitigate due to examination-and-approval
beyond power or without official approval document
Governmental subsidy reckoned into current 7,621,471.38
gains/losses(not including the subsidy enjoyed in quota or
ration, which are closely relevant to enterprise’s normal
business
Capital occupancy expense, collected from non-financial
enterprises and recorded in current gains and losses
Income from the exceeding part between investment cost
of the Company paid for obtaining subsidiaries, associates
and joint-ventures and recognizable net assets fair value
attributable to the Company when acquiring the investment
Gains and losses from exchange of non-monetary assets
113
深圳南山热电股份有限公司 2020 年半年度报告全文
Item Amount Note
Gains and losses from assets under trusted investment or
management
Various provision for impairment of assets withdrew due to
act of God, such as natural disaster
Gains and losses from debt restructuring
Enterprise restructuring costs, such as expenses for staff
placement, integration costs, etc
Gains and losses of the part arising from transaction in
which price is not fair and exceeding fair value
Current net gains and losses occurred from period-begin to
combination day by subsidiaries resulting from business
combination under common control
Gains and losses arising from contingent proceedings
irrelevant to normal operation of the Company
Except for effective hedge business relevant to normal
operation of the Company, gains and losses arising from fair
value change of tradable financial assets and tradable
financial liabilities, and investment income from disposal of
tradable financial assets, tradable financial liabilities and
financial assets available for sale
Switch-back of provision of impairment of account
receivable which are treated with separate depreciation test
Gains and losses obtained from external trusted loans
Gains and losses arising from change of fair value of
investment real estate whose follow-up measurement are
conducted according to fair value pattern
Affect on current gains and losses after an one-time
adjustment according to requirements of laws and
regulations regarding to taxation and accounting
Trust fee obtained from trust operation
Other non-operating income and expenditure except for the
-6,356.16
aforementioned items
Other gains and losses items complying with definition for
non-recurring gains and losses
Impact on income tax -67,935.50
Impact on minority shareholders’ equity -19,828.93
114
深圳南山热电股份有限公司 2020 年半年度报告全文
Item Amount Note
Total 41,890,768.00
(2) ROE and EPS
Weighted average ROE EPS
Profit in the Period
(%)） Basic EPS Diluted EPS
Net profit attributable to shareholders of the 2.57 0.09 0.09
listed company
Net profit attributable to shareholders of the 0.51 0.02 0.02
listed company after deducting non-recurring
gains and losses
115
