Shenzhen Nanshan Power Co., Ltd. The 1st Quarterly Report for 2009 (Full Text)
1
Stock Code: 000037, 200037 Notice No.: 2009-027
Short Form of the Stock: Shen Nan Dian A, Shen Nan Dian B
Shenzhen Nanshan Power Co., Ltd.
The 1st Quarterly Report For 2009
(Full Text)
§1. Important Notice
1.1 The Board of Directors and Supervisory Committee of Shenzhen Nanshan Power Co., Ltd.
(hereinafter referred to as the Company) and its directors, supervisors and senior executives hereby
confirm that there are not any fictitious statements, misleading information and important omissions
carried in this report, and shall take all responsibilities, individual and/or joint, for the reality,
accuracy and completion of the whole contents.
1.2 Other directors attended the meeting on examining the Quarterly Report except for the following
directors.
Name of absent
directors
Office title of the
absent directors Reason of absence Name of entrusted
Wang Jianbin Vice-chairman Could not present the meeting for being on official business
trip
Director Li
Hongsheng
Li Li Vice-chairman Could not present the meeting for being on official business
trip
Director Huang
Shaoji
He Yingyi Director Could not present the meeting for being on official business
trip
Vice-chairman
Sun Yulin
Huang Fuhan Director Could not present the meeting for being on official business
trip
Chairman Yang
Haixian
Xu Jing’an Independent
Director
Could not present the meeting for being on official business
trip
Independent
Director Zhou
Chengxin
Wu Xiaolei Independent
Director
Could not present the meeting for being on official business
trip
Independent
Director Yu
Xiufeng
1.3 The Financial Report For the 1st Quarterly Report of the Company has not been audited by
CPAs.
1.4 Chairman of the Board Yang Haixian, Director and General Manager Fu Bo, CFO Lu Xiaoping
and Director of Financial Department Huang Jian hereby confirm that the Financial Report enclosed
in the 1st Quarterly Report is true and complete.
§2. Company Profile
2.1 Main Accounting Data and Financial Indexes:
Unit: RMB
At the end of the report
period At the end of the last year Changes of
increase/decrease (%)
Total assets 5,049,460,148.70 4,985,939,525.71 1.27
Equity attributable to owners of the
parent company 1,760,685,493.65 1,773,172,227.76 -0.70
Share capital 602,762,596.00 602,762,596.00 0.00Shenzhen Nanshan Power Co., Ltd. The 1st Quarterly Report for 2009 (Full Text)
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Net asset per share attributable to
owners of the parent company 2.92 2.94 -0.68
In the report period The same period of last
year
Changes of
increase/decrease (%)
Total operating income 365,346,858.88 984,946,449.85 -62.91
Net profit attributable to owners of
the parent company -12,486,734.11 39,226,154.69 Decreased 51,712,900
Net cash flow arising from
operating activities 20,252,909.72 -221,237,616.38 Increased 241,490,500
Net cash flow arising from
operating activities per share 0.03 -0.40 Increased 0.40
Basic earnings per share -0.02 0.07 Decreased 0.09
Diluted earnings per share -0.02 0.07 Decreased 0.09
Return on equity -0.71% 2.22% Decreased 2.93 percentage
points
Return on equity after deducting
the non-recurring losses and gains -0.77% 1.95% Decreased 2.72 percentage
points
Items of non-recurring gains and losses Amount in year-begin to the
end of report period
Net amount of non-operating income and expense 1,020,994.38
Impact on income tax -10,601.96
Total 1,010,392.42
2.2 Total number of shareholders at the end of the report period and shares held by the top ten
shareholders with unrestricted conditions
Unit: Share
Total number of shareholders
at the end of report period 35,594
Particulars about the shares held by the top ten tradable shareholders with unrestricted conditions
Full Name of shareholder
Amount of tradable shares with
unrestricted conditions held at the
end of report period
Type of shares
HONG KONG NAM HOI
(INTERNATIONAL) LIMITED 92,123,248 Domestically listed foreign share
BNP P P/PAND INVESTMENT CO., LTD. 66,811,194 Domestically listed foreign share
SHENZHEN GUANGJU ELECTRONIC
INVESTMENT CO., LTD 60,276,260 RMB ordinary share
STATE GRID SHENZHEN ENERGY
DEVELOPMENT GROUP CO., LTD. 55,046,401 RMB ordinary share
SHENZHEN ENERGY GROUP CO., LTD. 30,138,130 RMB ordinary share
MORGAN STANLEY & CO.
INTERNATIONAL PLC 18,128,286 Domestically listed foreign share
YANG SHI MIN 2,498,210 Domestically listed foreign share
XU XIAN DA 1,843,780 Domestically listed foreign share/
RMB ordinary share
NAITO SECURITIES CO., LTD. 1,684,832 Domestically listed foreign share
TOYO SECURITIES ASIA LIMITED-A/C
CLIENT. 1,644,975 Domestically listed foreign share
§3. Significant eventsShenzhen Nanshan Power Co., Ltd. The 1st Quarterly Report for 2009 (Full Text)
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3.1 Particulars about material changes in items of main accounting statement and financial index,
and explanations of reasons
√Applicable □Inapplicable
(1) Items in profit statement
Item Change scope Main reason
Operation income -62.91%
Power generation quantity decreased; and
fuel-processing expenses of Zhongshan and
Dongguan Power Plants were recorded into
non-operating income since March of 2008.
Operation cost -67.54%
Power generation quantity decreased; falling
price of oil caused decrease of fuel-change cost
over the same period of last year.
Business tax and surcharges 47.04% Withdrawal of fee for capital occupancy made
increase of business tax.
Sales expense -59.49% Declining business made sales expense decrease
correspondingly.
Non-operating income -75.59%
Power generation quantity decreased and oil
price fell, thus fuel oil subsidy obtained by the
Company decreased.
Non-operating expenditure -88.58% Losses from asset disposal decreased.
Income tax expense -99.05% Income tax withdrawn decreased.
Net profit attributable to owners
of parent company
Decrease
RMB
51,712,900
Power generation quantity decreased.
(2) Items in balance sheet
Item Change scope Main reason
Notes receivable -71.34% Bank acceptance bill expired and was accepted.
Long-term equity investment 43.81% Increase investment in Jiangxi Xinchang Power
Plant
Construction in process 47.78% Newly-established projects increased.
Notes payable 157.74% Bank acceptance bills were increased for
equipment purchase.
Account payable 38.56% Account payable for goods from suppliers
increased.
Account received in advance 51.48% Account received in advance for goods
increased.
Long-term liability matured
within one year -40.00% Return borrowings.
(3) Items in cash flow statement
Item Change scope Main reason
Net cash flow arising from
operating activities
Increased
RMB 241
million
Operational items payable increased.
Net cash flow arising from
investment activities
Decreased
RMB 89
million
Increased expenditure for purchasing fixed
assets and investment in Jiangxi Xinchang
Power Plant.
Net cash flow arising from
financing activities
Decreased
RMB 429
million
Return borrowings.
3.2 Analysis and explanation of significant events and their influence and solutions
□Applicable √Inapplicable
√Applicable □InapplicableShenzhen Nanshan Power Co., Ltd. The 1st Quarterly Report for 2009 (Full Text)
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1. In 2008, PricewaterhouseCoopers Zhong Tian CPAs Limited Company issued unqualified
auditor’s report with emphasized events for the Company. In the report period, the events involved in
the non-standard unqualified opinion had no new progress. (Details could be found in Notice
2009-019 on Apr. 9, 2009.)
2. According to the Announcement of the Customs General Administration (No. 99 in 2008), the unit
tax amount of importation of fuel oil and diesel oil increased from RMB 0.10/L to RMB 0.80/L since
Jan. 1, 2009. Due to the influence of adjustment of the state’s tax revenue tax policy, when adopting
fuel power generation, the Company increased fuel cost of power generation amounting to RMB
0.14/kw, which accounted for 15% of the fuel cost of power generation; when adopting gas power
generation, there was no such cost increase. (Details could be found in Notice 2009-006 on Feb. 25,
2009.)
3. According to Notice on Reducing Processing Fee of Gas and Fuel in Guangdong Province
(YJ[2009] No. 44), the People’s Government of Guangdong decided to reduce processing fee of gas
and fuel to big industry in Guangzhou, Zhuhai, Foshan, Huizhou, Dongguan and Zhongshan
(including transferred big industry by bulk sale). The fee-collecting would be decreased from RMB
0.045/kw to RMB 0.022/kw, and other events would still be implemented in accordance with
document YFH [2008] No. 31. Due to the influenced holding subsidiary of the Company –
Shennandian (Zhongshan) Electric Power Co., Ltd. and Shennandian (Dongguan) Weimei Electric
Power Co., Ltd. had uncertainty in amount of generated electricity quantity and price of used gas and
fuel in 2009, the influence on the Company’s operating profit in year 2009 of this adjustment could
not be predicted. (Details could be found in Notice 2009-008 on Mar. 19, 2009.)
4. In the report period, debt restructuring of Zhongshan Power Plant Co., Ltd. and Zhongshan
Zhongfa Power Co., Ltd. was accomplished. In consideration of the change in operation scope, , the
aforesaid two companies respectively changed their names to Zhongshan Shenzhong Real Estate
Investment Property Co., Ltd. and Zhongshan Shenzhong Real Estate Development Co., Ltd., and
received new business licenses. At present, Zhongshan Power Plant Co., Ltd. and Zhongshan
Zhongfa Power Co., Ltd. are transacting procedure on changing names of their own relevant assets as
land and properties. (Details could be found in Notice 2009-012 on Apr. 4, 2009.)
Note: the newspapers for information disclosure of the Company are Securities Times, China
Securities Journal and Hong Kong Wen Wei Po, and the media for information disclosure is Juchao
Website.
3.3 Implementations of commitments by the Company, shareholders and actual controller
□Applicable √Inapplicable
3.4 Estimation of accumulative net profit from the beginning of the year to the end of next report
period to be loss probably or the warning of its material change compared with the corresponding
period of the last year and explanation of reason
□Applicable √Inapplicable
3.5 Other significant events which need explanations
3.5.1 Particulars about securities investment
□Applicable √Inapplicable
3.5.2 Registration form for receiving research, communication and interview in the report period.
Date Place Way The received parties Contents discussed and
materials supplied
Feb. 18, 2009 The
Company
Spot
research
Finance and Industry Research
Institute of Northeast Securities
Co., Ltd,
The whole status of the
CompanyShenzhen Nanshan Power Co., Ltd. The 1st Quarterly Report for 2009 (Full Text)
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3.5.3 Particulars about the explanations on other significant events
√Applicable □Inapplicable
1. In the report period, there were no such situations as the followings: the Company supplied funds
to controlling shareholders or other related parties, or supplied external guarantees against the
regulations;
2. In the report period, the Company did not sign up any material contract.
§4. Appendix
4.1 Balance sheet
March 31, 2009
Prepared by Shenzhen Nanshan Power Co., Ltd. Unit: RMB
Merger Parent Company
Assets
March 31, 2009 Dec. 31, 2008 March 31, 2009 Dec. 31, 2008
Current assets:
Monetary funds 334,233,424.96 429,507,715.29 41,224,476.76 29,272,846.21
Settlement provisions - -
Notes receivable 752,760.00 2,626,222.50
Accounts receivable 372,486,393.09 339,893,125.56 110,214,239.29 114,758,696.74
Accounts paid in
advance 57,478,704.03 67,011,796.04 13,951,931.53 5,391,749.58
Interest receivable - - - -
Dividend receivable - - 597,875,904.41 597,875,904.41
Other receivables 13,168,948.98 16,177,663.50 1,336,368,155.33 1,092,405,738.66
Inventories 1,377,254,460.63 1,292,492,515.40 300,890,631.48 200,016,725.06
Long-term liabilities
investment due within one
year
- - - -
Other current assets - - - -
- -
Total current assets 2,155,374,691.69 2,147,709,038.29 2,400,525,338.80 2,039,721,660.66
Non-current assets: - -
Finance asset available
for sales - -
Held-to-maturity
securities - -
Long-term account
receivable - -
Long-term equity
investment 222,283,229.00 154,568,943.00 712,806,078.76 645,091,792.76
Investment property 8,646,589.56 8,810,232.45 - -
Fixed assets 2,457,347,715.43 2,501,462,089.16 389,761,209.75 398,151,919.32
Construction in
progress 102,297,900.16 69,221,381.57 15,647,633.35 15,247,657.72
Engineering material - - - -
Disposal of fixed asset - - - -Shenzhen Nanshan Power Co., Ltd. The 1st Quarterly Report for 2009 (Full Text)
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Productive biological
asset - - - -
Oil and gas asset - - - -
Intangible assets 83,783,085.19 84,312,023.87 3,276,301.07 3,809,711.87
Expense on Research
and Development - - - -
Goodwill - - - -
Long-term expenses to
be apportioned 700,342.11 829,221.81 369,696.05 397,996.28
Deferred income tax
asset 19,026,595.56 19,026,595.56 14,756,122.84 14,756,122.84
Other non-current asset - - - -
Total non-current asset 2,894,085,457.01 2,838,230,487.42 1,136,617,041.82 1,077,455,200.79
- -
Total assets 5,049,460,148.70 4,985,939,525.71 3,537,142,380.62 3,117,176,861.45
Liabilities and owners’ Merger Parent Company
equities March 31, 2009 Dec. 31, 2008 March 31, 2009 Dec. 31, 2008
Current liabilities:
Short-term loans 2,449,682,328.55 2,461,843,918.77 1,581,609,240.00 1,145,922,040.00
Transaction financial
liabilities - - - -
Notes payable 177,964,548.15 69,049,391.35 66,918,219.70 21,918,219.70
Accounts payable 145,078,827.51 104,706,998.24 74,022,932.19 175,244,357.18
Accounts received in
advance 3,330,408.40 2,198,638.40 - -
Wage payable 32,736,583.06 31,921,195.28 18,231,075.91 17,785,432.49
Taxes payable -360,974,530.10 -339,865,158.06 -281,820,090.83 -286,213,117.57
Interest payable 34,862,077.99 34,361,227.33 1,912,538.92 2,171,300.00
Dividend payable - - - -
Other accounts payable 311,069,898.20 304,241,543.35 242,208,595.18 196,718,008.59
Long-term liabilities due
within 1 year 60,000,000.00 100,000,000.00 - -
Other current liabilities - - - -
Total current liabilities 2,853,750,141.76 2,768,457,754.66 1,703,082,511.07 1,273,546,240.39
Non-current liabilities: - -
Long-term loans 266,000,000.00 281,000,000.00 110,000,000.00 110,000,000.00
Bonds payable - - - -
Long-term account
payable - - - -
Special accounts
payable - - - -
Projected liabilities - - - -
Deferred income tax
liabilities - - - -
Deferred income 600,000.00 600,000.00 - -
Total non-current liabilities 266,600,000.00 281,600,000.00 110,000,000.00 110,000,000.00Shenzhen Nanshan
Power Co., Ltd. The 1st Quarterly Report for 2009 (Full Text)
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Total liabilities 3,120,350,141.76 3,050,057,754.66 1,813,082,511.07 1,383,546,240.39
Owner’s equity: - -
Share capital) 602,762,596.00 602,762,596.00 602,762,596.00 602,762,596.00
Capital public reserve 363,629,927.51 363,629,927.51 288,769,132.47 288,769,132.47
Less: Inventory shares - - - -
Surplus public reserve 332,908,397.60 332,908,397.60 332,908,397.60 332,908,397.60
Provision of general
risk - -
Retained profit 461,384,572.54 473,871,306.65 499,619,743.48 509,190,494.99
Balance difference of
foreign currency translation - -
Total owner’s equity
attributable to parent
company 1,760,685,493.65 1,773,172,227.76
Minority interests 168,424,513.29 162,709,543.29
Total owner’s equity 1,929,110,006.94 1,935,881,771.05 1,724,059,869.55 1,733,630,621.06
Total liabilities and owner’s
equities 5,049,460,148.70 4,985,939,525.71 3,537,142,380.62 3,117,176,861.45
4.2 Profit statement
Jan.-Mar., 2009
Prepared by Shenzhen Nanshan Power Co., Ltd. Unit: RMB
Merger Parent Company
Items Jan.-Mar., 2009 Jan.-Mar., 2008 Jan.-Mar., 2009 Jan.-Mar., 2008
I. Total operating income 365,346,858.88 984,946,449.85 64,100,840.81 348,523,665.61
Including: Operating income 365,346,858.88 984,946,449.85 64,100,840.81 348,523,665.61
Interest income - -
Insurance gained - -
Commission charge and
commission income - -
II. Total operating cost 455,635,714.61 1,273,588,107.37 86,866,423.32 543,931,886.38
Including: Operating cost 392,632,944.49 1,209,414,118.28 76,457,537.03 535,668,066.28
Interest expense - -
Commission charge and
commission expense 1,504,435.15 1,023,159.99 1,020,916.11 354,346.01
Sales expenses 249,876.62 616,804.34 - -
Administration expenses 28,316,452.46 30,405,013.81 3,185,890.52 9,227,189.21
Financial expenses 32,932,005.89 32,129,010.95 6,202,079.66 -1,317,715.12
Losses of devaluation of asset - -
Add: Changing income of fair
value - -
Investment income - - - -
III. Operating profit -90,288,855.73 -288,641,657.52 -22,765,582.51 -195,408,220.77
Add: Non-operating income 83,674,464.60 342,829,613.35 13,194,831.00 258,879,243.00
Less: Non-operating expense 40,391.67 353,633.00 - -
Including: Disposal loss of - -Shenzhen Nanshan Power Co., Ltd. The 1st Quarterly Report for 2009 (Full
Text)
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non-current asset
IV. Total Profit -6,654,782.80 53,834,322.83 -9,570,751.51 63,471,022.23
Less: Income tax 116,981.31 12,282,683.31 - 11,424,784.00
V. Net profit -6,771,764.11 41,551,639.52 -9,570,751.51 52,046,238.23
Net profit attributable to
owner’s equity of parent company -12,486,734.11 39,226,154.69
Minority shareholders’ gains
and losses in current period 5,714,970.00 2,325,484.83
VI. Earnings per share - -
i. Basic earnings per share -0.021 0.065 -0.016 0.086
ii. Diluted earnings per share -0.021 0.065 -0.016 0.086
4.3 Cash flow statement
Jan.-Mar., 2009
Prepared by Shenzhen Nanshan Power Co., Ltd. Unit: RMB
Merger Parent Company
Items
Jan.-Mar., 2009 Jan.-Mar., 2008 Jan.-Mar., 2009 Jan.-Mar., 2008
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor services 614,696,653.14 1,478,353,616.79 241,051,805.40 552,762,184.60
Write-back of tax received 8,690,096.12 - - -
Other cash received concerning
operating activities 17,161,639.11 275,830,705.90 77,586,536.75 557,003,694.42
Subtotal of cash inflow arising from
operating activities 640,548,388.37 1,754,184,322.69 318,638,342.15 1,109,765,879.02
Cash paid for purchasing
commodities and receiving labor service 552,058,279.30 1,681,447,380.79 330,488,364.75 462,057,637.13
Cash paid to/for staff and workers 26,457,398.04 36,903,196.98 16,671,236.99 24,640,845.64
Taxes paid 22,190,954.14 28,506,486.05 4,182,552.61 606,801.04
Other cash paid concerning
operating activities 19,588,847.17 228,564,875.25 302,408,520.33 961,877,464.98
Subtotal of cash outflow arising from
operating activities 620,295,478.65 1,975,421,939.07 653,750,674.68 1,449,182,748.79
Net cash flows arising from
operating activities 20,252,909.72 -221,237,616.38 -335,112,332.53 -339,416,869.77
II. Cash flows arising from investing
activities: - - - -
Cash received from recovering
investment - - - -
Net cash received from disposal of
fixed, intangible and other long-term
assets 520.00 - - -
Subtotal of cash inflow from
investing activities 520.00 - - -
Cash paid for purchasing fixed,
intangible and other long-term assets 51,379,481.82 29,878,528.28 3,510,121.57 4,247,796.29
Cash paid for investment 67,714,286.00 - 67,714,286.00 -
Subtotal of cash outflow from
investing activities 119,093,767.82 29,878,528.28 71,224,407.57 4,247,796.29Shenzhen Nanshan Power Co.,
Ltd. The 1st Quarterly Report for 2009 (Full Text)
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Net cash flows arising from
investing activities -119,093,247.82 -29,878,528.28 -71,224,407.57 -4,247,796.29
III. Cash flows arising from financing
activities - - - -
Cash received from absorbing
investment - - - -
Cash received from loan 876,572,517.27 1,842,930,551.45 530,000,000.00 835,871,360.00
Other cash received concerning
financing activities - 20,697,515.00 - -
Subtotal of cash inflow from
financing activities 876,572,517.27 1,863,628,066.45 530,000,000.00 835,871,360.00
Cash paid for settling debts 832,534,841.04 1,387,226,043.54 94,327,000.00 507,734,020.00
Cash paid for dividend and profit
distributing or interest paying 40,625,814.30 42,141,686.22 17,384,042.93 10,975,723.04
Other cash paid concerning
financing activities - 1,700,000.00 - -
Subtotal of cash outflow from
financing activities 873,160,655.34 1,431,067,729.76 111,711,042.93 518,709,743.04
Net cash flows arising from
financing activities 3,411,861.93 432,560,336.69 418,288,957.07 317,161,616.96
IV. Influence on cash due to fluctuation in
exchange rate 154,185.84 -54,855.99 -586.42 -37,590.19
V. Net increase of cash and cash
equivalents -95,274,290.33 181,389,336.04 11,951,630.55 -26,540,639.29
Add: Balance of cash and cash
equivalents at the period -begin 429,507,715.29 419,172,277.64 29,272,846.21 125,774,088.96
VI. Balance of cash and cash equivalents
at the period -end 334,233,424.96 600,561,613.68 41,224,476.76 99,233,449.67
4.4 Auditor’ report
Auditor’s opinions: Un-audited
Board of Directors of
Shenzhen Nanshan Power Co., Ltd.
April 25, 2009
