深圳南山热电股份有限公司 2022 年半年度报告全文
Shenzhen Nanshan Power Co., Ltd.
Semi-annual Report 2022
【Disclosure Date】
August 19, 2022
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深圳南山热电股份有限公司 2022 年半年度报告全文
Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and senior
officers of Shenzhen Nanshan Power Co., Ltd. (hereinafter, the Company)
guarantee that the Semi-Annual Report contains no misrepresentations,
misleading statements or material omissions, and take all responsibilities,
individual and/or joint, for the reality, accuracy and completion of the whole
contents.
Principal of the Company- Li Xinwei (Mr. Li Xinwei has resigned as the director
and chairman of the Company on July 25, 2022), person in charger of
accounting works- Chen Yuhui, CFO Zhang Xiaoyin and person in charge of
accounting organ (chief accountants)-Lin Xiaojia guarantee that the Financial
Report of the semi-annual report disclosed is truthful, accurate and complete.
All directors are attended the Board Meeting for report deliberation.
The Company plans to pay no cash dividends, send no bonus shares and not to
increase share capital by converting from public reserves.
Concerning the forward-looking statements with future planning involved in the
Semi-annual Report, they do not constitute a substantial commitment for
investors. Investors are advised to exercise caution of investment risks.
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深圳南山热电股份有限公司 2022 年半年度报告全文
Contents
Section I. Important Notice, Contents and Interpretation .......................................................................................... 1
Section II. Company Profile and Main Financial Indexes ......................................................................................... 5
Section III Management Discussion and Analysis..................................................................................................... 9
Section IV. Corporate Governance .......................................................................................................................... 22
Section V. Environmental and Social Responsibility............................................................................................... 23
Section VI. Important Event .................................................................................................................................... 25
Section VII. Changes Unit: shares and Particulars about Shareholders................................................................... 32
Section VIII. Preferred Stock................................................................................................................................... 37
Section IX. Corporate Bonds ................................................................................................................................... 38
Section X. Financial Report ..................................................................................................................................... 39
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深圳南山热电股份有限公司 2022 年半年度报告全文
Document Available for Reference
I. Original Semi-Annual Report of 2022 carrying the signature of the legal representative of the Company
II. Financial statement with signature and seal of legal person, person in charge of accounting works (General
manager), CFO and person in charge of accounting organ(chief accountant);
III. Text of notice and original draft that public on Securities Times, China Securities Journal and Hong Kong
Commercial Daily during the reporting period.
IV. The place where the document placed: Shenzhen Stock Exchange, Office of Board of Directors of the
Company.
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深圳南山热电股份有限公司 2022 年半年度报告全文
Interpretation
Items Refers to Contents
Company, the Company, Shen Nan Dian,
Refers to Shenzhen Nanshan Power Co., Ltd.
The listed company
Shen Nan Dian (Zhongshan) Electric Power Co.,
Shen Nan Dian Zhongshan Company Refers to
Ltd.
Shenzhen Shennandian Turbine Engineering
Shen Nan Dian Engineering Company Refers to
Technology Co., Ltd
Shen Nan Dian Environment Protection Shenzhen Shen Nan Dian Environment Protection
Refers to
Company Co., Ltd.
Server Company Refers to Shenzhen Server Petrochemical Supplying Co., Ltd
New Power Company Refers to Shenzhen New Power Industrial Co., Ltd.
Singapore Company Refers to Shen Nan Energy (Singapore) Co., Ltd.
Nanshan Power Factory of Shenzhen Nanshan
Nanshan Power Factory Refers to
Power Co., Ltd.
Zhongshan Nanlang Power Plant of Shen Nan Dian
Zhongshan Nanlang Power Plant Refers to
(Zhongshan) Electric Power Co., Ltd.
Article of Association of Shenzhen Nanshan Power
Articles of Association Refers to
Co., Ltd.
Except the special description of the monetary unit,
Yuan, ten thousand Yuan, one hundred
Refers to the rest of the monetary unit is RMB Yuan, ten
million
thousand Yuan,one hundred million Yuan
Reporting period Refers to 1 January 2022 to 30 June 2022
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深圳南山热电股份有限公司 2022 年半年度报告全文
Section II. Company Profile and Main Financial Indexes
I. Company profile
Shen Nan Dian A , Shen Nan
Short form of the stock Stock code 000037, 200037
Dian B
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in
深圳南山热电股份有限公司
Chinese)
Short form of the Company
深南电
(in Chinese) (if applicable)
Foreign name of the
Shenzhen Nanshan Power Co., Ltd.
Company (if applicable)
Legal representative Li Xinwei
II. Person/Way to contact
Secretary to the BOD Rep. of security affairs
Name Zou Yi
16/F-17/F, Hantang Building, OCT,
Contact add. Nanshan District, Shenzhen, Guangdong
Province
Tel. 0755-26003611
Fax. 0755-26003684
E-mail investor@nspower.com.cn
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or
not
□ Applicable √Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,
found more details in Annual Report 2021.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2021.
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深圳南山热电股份有限公司 2022 年半年度报告全文
3.Other relevant information
Whether other relevant information has changed during the reporting period
□ Applicable √ Not applicable
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes √ No
Changes in the current
reporting period compared
Current period Same period last year
with the same period of the
previous year (+,-)
Operating revenue (RMB) 229,243,542.07 376,602,393.38 -39.13%
Net profit attributable to
shareholders of the listed -94,098,149.09 1,456,269.68 -6,561.59%
Company (RMB)
Net profit attributable to
shareholders of the listed
Company after deducting -127,505,554.48 -19,517,615.51 -553.28%
non-recurring gains and
losses (RMB)
Net cash flow arising from
200,588,083.30 68,920,712.99 191.04%
operating activities (RMB)
Basic earnings per share
-0.1561 0.0024 -6,604.17%
(RMB/Share)
Diluted earnings per share
-0.1561 0.0024 -6,604.17%
(RMB/Share)
Weighted average ROE -6.00% 0.07% 6.07 percentage points down
Changes at the end of the
reporting period compared
End of current period End of last year
with the end of the previous
year (+,-)
Total assets (RMB) 2,998,519,336.41 2,790,002,824.41 7.47%
Net assets attributable to
shareholder of listed 1,521,194,986.42 1,615,293,135.51 -5.83%
Company (RMB)
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深圳南山热电股份有限公司 2022 年半年度报告全文
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (International
Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or
Chinese GAAP (Generally Accepted Accounting Principles) in the period.
VI. Items and amounts of non-recurring (extraordinary) profit (gains)/loss
√Applicable □ Not applicable
In RMB/CNY
Item Amount Note
Governmental subsidy calculated into
current gains and losses(while closely
related with the normal business of the
Company, the government subsidy that The government subsidy related to assets
4,440,645.78
accord with the provision of national are being amortized
policies and are continuously enjoyed in
line with a certain standard quota or
quantity are excluded)
Gains/losses of fair value changes arising
from holding of the trading financial
asset, trading financial liability and
investment earnings obtained from
disposing the trading financial asset, 29,212,829.84 Income from wealth management
trading financial liability, and financial
assets available for sale, except for the
effective hedging business related to
normal operation of the Company
Other non-operating income and
expenditure except for the -228,495.85
aforementioned items
Less: Impact on minority shareholders’
17,574.38
equity (post-tax)
Total 33,407,405.39
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深圳南山热电股份有限公司 2022 年半年度报告全文
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□ Applicable √ Not applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.
Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A
Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
□ Applicable √ Not applicable
There are no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&A
Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
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深圳南山热电股份有限公司 2022 年半年度报告全文
Section III Management Discussion and Analysis
I. Main businesses of the Company in the reporting period
In the first half of 2022, the national electricity consumption of the whole society was 4,100 billion kWh, a
year-on-year increase of 2.9%. In the first and second quarters, the total electricity consumption of the whole
society increased by 5.0% and 0.8% on a year-on-year basis respectively. In the second quarter, the growth rate
dropped significantly mainly due to the influence of the pandemic situation in some areas in April and May, and
the total electricity consumption of the whole society recorded negative growth for two consecutive months. In
June, as the pandemic eased, the effects of economic stabilization policies were gradually implemented, and with
the addition of high-temperature weather factors in many places, the electricity consumption of the whole society
in the month increased by 4.7% on a year-on-year basis, 6.0 percentage points higher than the growth rate in May.
The apparent rebound in the growth rate of electricity consumption in June reflected to a certain extent that the
current resumption of work and production and the resumption of business and markets have achieved positive
results. According to the main statistical indicators of Guangdong in the first half of 2022 released by the
Guangdong Provincial Bureau of Statistics, the total electricity consumption in Guangdong Province in the first
half of the year was 355.608 billion kWh, a year-on-year decrease of 2.4%; the industrial electricity consumption
was 212.082 billion kWh, a year-on-year decrease of 3.4%; the electricity consumption of the manufacturing
industry was 174.914 billion kWh, a year-on-year decrease of 4.3%. It is expected that during the peak summer
period, the national power supply and demand will be in a tight balance overall. The power supply and demand in
some provinces in East China, Central China, and South China will be tight during peak hours, and the power
supply and demand in North China, Northeast China, and Northwest China will be basically balanced. During the
peak winter period, the national power supply and demand shall be generally in a tight balance. The power supply
and demand in some provinces in East China, Central China, South China, and Northwest China shall be tight
during peak hours, and the power supply and demand in North China and Northeast China shall be basically
balanced.
The company is specialized in power and thermal supply, as well as providing technical consulting and technical
services for power stations. At the end of reporting period, the Company holds two wholly-owned and holding gas
turbine plants, which equipped with five sets of 9E gas steam combined cycle power generating units, with total
installed capacity up to 900,000 KW (Nanshan Power Factory: 3×180000KW, Zhongshan Nanlang Power Plant:
2×180000KW).The two gas turbine plants are located in the power-load center of the Pearl River Delta, and it is
the main peak-regulating power supply in the region which is currently in normal production and operation state.
In the first half of 2022, domestic pandemics had frequent and sporadic outbreaks, and the international
environment became more complex and severe. In the face of extremely complex and difficult situations, the
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深圳南山热电股份有限公司 2022 年半年度报告全文
company conscientiously implemented the relevant requirements of competent government departments at all
levels on the security and supply of energy and electricity, took strong and effective measures, and went all out to
ensure the safety and reliability of electricity production, provided a strong power guarantee for pandemic
prevention and control and economic and social development. From January to June 2022, two subordinate power
generation enterprises of the company completed a total of 275 million kWh of actual grid electricity and 634
million kWh of financial settlement electricity. The completion of electricity of each subsidiary of the company
was as follows: Nanshan Power Factory completed the actual grid electricity of 264.5 million kWh and the
financial settlement electricity of 412 million kWh. Zhongshan Nanlang Power Plant completed the actual grid
electricity of 10.5 million kWh and the financial settlement electricity of 223 million kWh. While the overall
electricity consumption of the whole province declined, due to the fact that the price of natural gas remained high,
the company's actual on-grid electricity dropped significantly on a year-on-year basis.
During the reporting period, the domestic and foreign pandemics, macro economy, fuel supply, temperature, as
well as continuous large-scale losses of coal and power companies were intertwined and superimposed, the
company’s main power business faced many challenges, such as repeated COVID-19 pandemics, persistently high
fuel prices, trial operation of the spot market settlement of electric power, and the continued shortage of electricity
supply and demand in the southern region where it locates. The company not only had to fulfill the social
responsibility of ensuring electricity supply, but bear the huge operating pressure caused by the sharp rise in fuel
prices, facing extremely severe business situation. In order to minimize the negative impact of the external
environment on the company's business performance, the company implemented a series of business layout and
management changes with innovative thinking and tenacity, clarified the annual business goals and guidelines,
and took targeted major measures. While focusing on safe production, strengthening internal management, and
continuously improving the operation and management level and management efficiency of the company's stock
assets, actively promoted the withdrawal of backward production capacity, we went all out to promote the
demonstration and implementation of new production capacity and new projects. While striving to adapt to the
accelerating trend of the reform process of electricity marketization in Guangdong Province, we strived to achieve
transformation and development as soon as possible.
II. Core Competitiveness Analysis
In recent years, due to the impact of the macroeconomic situation and the common problems of gas turbine
generating industry, the Company’s main business has been facing increasing difficulties and challenges. However,
the basic core competitiveness formed by the operation and development for more than three decades and thanks
to the strong support from major shareholders, and the management innovations adopted by the Board and leading
group, it has laid a necessary foundation for the Company to survive and seeking transformation and development.
During the reporting period, the company's core competitiveness has been further consolidated and improved, and
there have been no major changes that may affect the company's future operations. (core competitiveness analysis
found more in the Annual Report 2021)
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深圳南山热电股份有限公司 2022 年半年度报告全文
III. Main business analysis
Overview
Found more in”I. Main businesses of the Company in the reporting period”
Y-o-y changes of main financial data
In RMB/CNY
Same period of last Y-o-y
Current period Reasons for changes
year increase/decrease (+,-)
The revenue from
electricity settlement
Operating revenue 229,243,542.07 376,602,393.38 -39.13% declined for the
dropping of generating
capacity
Cost of natural gas
reduced for the
Operating costs 282,486,432.21 351,210,223.91 -19.57%
dropping of generating
capacity
Affected by macro
economy policy, Shen
Nan Dian Environment
Protection Company
need to carry out
Sales expenses 696,436.80 -100.00%
transformation and
eliminating on the
sludge drying facilities,
the sales expenses was
0 yuan
Administrative
43,777,644.68 40,014,168.55 9.41%
expenses
The volume of credit
Finance expenses 16,729,716.11 2,835,034.71 490.11%
increased
New expenses of R&D
R&D investment 17,072,589.13 3,360,629.60 408.02% increased from parent
company
Net cash flow arising
The VAT credit refund
from operating 200,588,083.30 68,920,712.99 191.04%
received
activities
Net cash flow arising More expenses on
from investment -730,434,844.43 -442,542,660.44 -65.05% procurement of wealth
activities management products
Net cash flow arising
from financing 309,964,533.04 60,903,494.60 408.94% Soaring in bank loans
activities
On a y-o-y basis, the
Net increase of cash net increase in cash
-219,586,524.40 -312,778,014.74 -29.79% from operating and
and cash equivalent
financing activities was
greater than the net
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深圳南山热电股份有限公司 2022 年半年度报告全文
decrease in cash from
investment activities
No changes on profit composition or profit resources in reporting period
Constitution of operating revenue
In RMB/CNY
Y-o-y changes
Current period Same period of last year
(+,-)
Ratio in operating Ratio in operating
Amount Amount
revenue revenue
Total operating
229,243,542.07 100% 376,602,393.38 100% -39.13%
revenue
According to industries
Energy industry 205,738,094.27 89.75% 356,995,223.97 94.79% -42.37%
Engineering labor 22,901,068.56 9.99% 15,650,905.64 4.16% 46.32%
Sludge drying 3,388,263.75 0.90% -100.00%
Other 604,379.24 0.26% 568,000.02 0.15% 6.40%
According to products
Electricity sales 205,738,094.27 89.75% 356,995,223.97 94.79% -42.37%
Engineering labor 22,901,068.56 9.99% 15,650,905.64 4.16% 46.32%
Sludge drying 3,388,263.75 0.90% -100.00%
Other 604,379.24 0.26% 568,000.02 0.15% 6.40%
According to region
Shenzhen 212,734,667.53 92.80% 306,547,992.61 81.40% -30.60%
Zhongshan 16,508,874.54 7.20% 70,054,400.77 18.60% -76.43%
The industries, products, or regions accounting for over 10% of the Company’s operating revenue or operating profit
√Applicable □ Not applicable
In RMB/CNY
(+,-)Increase/de (+,-)Increase/de (+,-)Increase/de
Gross profit crease of crease of crease of gross
Operating revenue Operating costs
ratio operating operating cost profit ratio
revenue y-o-y y-o-y y-o-y
According to industries
Energy
205,738,094.27 268,797,532.96 -30.65% -42.37% -19.60% -37.00%
industry
Engineeri
22,901,068.56 13,594,750.26 40.64% 46.32% 49.02% -1.07%
ng labor
According to products
Electricity
205,738,094.27 268,797,532.96 -30.65% -42.37% -19.60% -37.00%
sales
Engineeri
22,901,068.56 13,594,750.26 40.64% 46.32% 49.02% -1.07%
ng labor
According to region
Shenzhen 212,130,288.29 254,638,845.99 -20.04% -30.67% -9.03% -28.56%
Zhongsha
16,508,874.54 27,756,267.42 -68.13% -76.43% -61.01% -66.52%
n
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深圳南山热电股份有限公司 2022 年半年度报告全文
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on
latest one year’s scope of period-end
□ Applicable √ Not applicable
Reasons for y-o-y relevant data with over 30% changes
√Applicable □ Not applicable
1.Revenue from electricity sales drops 42.37% from a year earlier, mainly because the revenue from electricity settlement declined
for the dropping of generating capacity; gross profit ratio reduced on a y-o-y basis mainly due to the soaring costs of
natural gas.
2. Revenue from engineering labor rose 46.32% from a year earlier, mainly due to the increase in revenue settlement of engineering
labor from aboard; operating costs increased 49.02% on a y-o-y basis, mainly because the business of engineering labor growth leads
to a corresponding growth in costs.
3. Revenue from sludge drying decreases 100% from a year earlier, mainly because affected by macro economy policy, Shen Nan
Dian Environment Protection Company need to carry out transformation and eliminating on the sludge drying facilities
IV. Analysis of the non-main business
√Applicable □ Not applicable
In RMB/CNY
Whether be sustainable
Amount Ratio in total profit Note
(Y/N)
The income from
Investment income 27,741,227.07 -27.26% N
wealth management
Non-operating
228,495.85 -0.22% N
expenditure
V. Analysis of assets and liability
1. Major changes of assets composition
In RMB/CNY
Ratio
Notes of major
End of the current Period End of last year changes
changes
(+,-)
Ratio in Ratio in
Amount total Amount total
assets assets
Purchasing more
Monetary fund 470,018,109.19 15.68% 689,604,633.59 24.72% -9.04% wealth management
products
Account
136,622,627.23 4.56% 73,610,161.02 2.64% 1.92%
receivable
Contractual
0.00 0.00% 1,040,0000.00 0.04% -0.04%
assets
Inventory 86,153,552.73 2.87% 88,500,991.13 3.17% -0.30%
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深圳南山热电股份有限公司 2022 年半年度报告全文
Investment real
1,917,733.00 0.06% 2,009,051.80 0.07% -0.01%
estate
Long-term
equity 5,515,052.42 0.18% 6,986,655.19 0.25% -0.07%
investment
Fixed assets 616,207,380.43 20.55% 643,256,398.30 23.06% -2.51%
Construction in
5,609,774.20 0.19% 6,088,768.51 0.22% -0.03%
process
Short-term
1,334,338,596.65 44.50% 858,444,163.25 30.77% 13.73% Increase in bank loans
loans
Trading Increase in wealth
1,280,776,513.22 42.71% 632,874,406.39 22.68% 20.03%
financial assets management products
Other current The VAT credit refund
8,925,003.96 0.30% 331,868,661.62 11.89% -11.59%
assets received
Return of the payable
Note payable 135,025,883.27 4.84% -4.84% bank notes on
maturity
2.Main foreign assets
□ Applicable √ Not applicable
3. Assets and liability measured by fair value
√Applicable □Not applicable
In RMB/CNY
Gain/loss Cumulative Impairm
Amount Amount
of fair change of ent
Opening purchased sold in Other Ending
Item value fair value accrual
amount in the the changes amount
changes in recorded in the
Period Period
the Period into equity Period
Financial assets
Trading
financial assets
632,874,40 647,902,10 1,280,776,5
(derivative
6.39 6.83 13.22
financial assets
excluded)
Other equity
200,615,00 100,000,00 300,615,00
instrument
0.00 0.00 0.00
investment
Subtotal of 833,489,40 747,902,10 1,581,391,5
financial assets 6.39 6.83 13.22
Other changes
N/A
Whether there is a significant changes in the measurement attributes of the main assets during the period
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深圳南山热电股份有限公司 2022 年半年度报告全文
□Yes √No
4. Assets right restriction till end of reporting period
N/A
VI. Investment analysis
1. Overall situation
√ Applicable □Not applicable
Investment amount in the Period Investment amount at same period
Changes (+,-)
(RMB) last year (RMB)
100,000,000.00 118,957,517.00 -15.94%
2. The major equity investment obtained in the reporting period
□Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company had no derivatives investment in the reporting period.
5.Use of proceeds
□ Applicable √ Not applicable
The Company had no use of proceeds in the reporting period.
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深圳南山热电股份有限公司 2022 年半年度报告全文
VII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
VIII. Analysis of main Holding Company and stock-jointly companies
√Applicable □Not applicable
Particular about main subsidiaries and stock-jointly companies with an impact of 10% or more on the Company’s net profit
In RMB/CNY
Register Operating Operating
Name Type Main business Total assets Net assets Net profit
capital revenue profit
Technology
development
regarding to
application of
remaining heat
Shenzhen
(excluding
New RMB
Subsid restricted items) 826,794,32 51,079,176. 92,783,779. -44,309,21 -44,309,21
Power 113.85
iary and power 9.21 21 73 4.37 4.37
Industrial million
generation with
Co., Ltd.
remaining heat.
Add: power
generation
through burning
machines.
Sludge drying; the
design and
operations
management of
sludge treatment
Shenzhen
Shen Nan and disposal
Dian facilities and RMB 79
Subsid 64,627,630. 47,389,061. -4,678,870. -4,678,870.
Environm 24,000.00
iary engineering; the million 43 75 83 83
ent
Protection technology
Co., Ltd. development,
technology
transfer, technical
advice, technical
services of
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深圳南山热电股份有限公司 2022 年半年度报告全文
environmental
pollution control
and
comprehensive
utilization
domain; (Except
for the projects
required to be
approved before
registration by
laws,
administrative
regulations, or
decisions and
stipulation of the
State Council, the
restricted items
must be approved
before operating)
Engage in the
technical advisory
service for the
construction
projects of
gas-steam
combined cycle
power plant
(station), and
undertake the
Shenzhen maintenance and
Shennandi
overhaul of the
an Turbine RMB 10
Subsid operation 70,151,088. 41,065,930. 22,901,068. 2,077,549.4 2,077,549.4
Engineeri
iary million 10 65 56 5 5
ng equipment of
Technolog gas-steam
y Co., Ltd
combined cycle
power plant
(station). Import
and export of
goods and
technologies
(excluding
distribution and
state monopoly
commodities)
17
深圳南山热电股份有限公司 2022 年半年度报告全文
Self-supporting or
import agent
business of fuel
oil; trade
(excluding
production and
storage and
transportation) in
diesel, lubricating
oil, liquefied
petroleum gas,
natural gas,
compressed gas
and liquefied gas,
chemical products
(excluding
dangerous
chemicals);
investment,
construction and
Shenzhen technical supports
Server
in liquefied RMB 53.3
Petrochem Subsid 97,796,694. 80,270,360. -3,205,367. -3,205,367.
546,857.12
ical iary petroleum gas, million 06 16 11 11
Supplying natural gas and
Co., Ltd
related facilities;
import and export
businesses and
domestic trade of
goods and
technologies
(excluding
franchise,
exclusive control,
and monopoly
products); leasing
business.
Licensed projects:
fuel oil
warehousing
business (except
for refined oil);
general freight
transport, special
transportation of
18
深圳南山热电股份有限公司 2022 年半年度报告全文
goods
(containers),
special
transportation of
goods (tank)
Gas turbine power
generation, waste
heat power
generation, power
supply and
heating(heating
pipe network
excluded),
leasing of wharf,
Shen Nan oil depots and
Dian
power equipment RMB 746.8
(Zhongsha Subsid 267,788,12 -419,728,6 16,508,874. -30,314,46 -30,324,46
n) Electric iary felicities million 2.94 85.71 54 5.11 5.11
Power (excluding refined
Co., Ltd.
oil, dangerous
chemicals, or
flammable and
explosive goods);
leasing of
land-use right;
non-residential
real estate leasing
Shen Nan Agent for oils
Energy trade and spare US $ 0.9
Subsid 103,704,28 101,163,02
(Singapor 0 931,993.18 931,993.18
iary parts of gas million 1.62 5.70
e) Co.,
Ltd. turbine
Zhuhai
Hengqin
Zhuozhi
Investmen Equity RMB
Subsid 140,279,61 140,279,61
t investment, 140,918,00 0 -10,538.00 -10,538.00
iary 2.23 2.23
Partnershi venture capital 0
p (Limited
Partnershi
p)
Subsidiary disposes and acquired in the period
□ Applicable √Not applicable
Statement of main holding company and stock-jointly companies
Not applicable
19
深圳南山热电股份有限公司 2022 年半年度报告全文
IX. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
X. Risks and countermeasures
1. In terms of main business: In 2022, the Guangdong power market starts the continuous trial operation of spot
electricity. With the natural gas prices remaining high, the company’s two power plants have to fulfill the social
responsibility of ensuring power supply, and confront with great operating pressure. In the face of the
above-mentioned unfavorable policy and industry situation, in order to minimize the loss of the main business of
electric power, the company mainly relies on industry associations such as the Gas Turbine Special Committee,
the Natural Gas Power Generation Supply Chain Special Committee, etc., actively appeals to the relevant
government departments to implement the gas-electricity price linkage mechanism according to the relevant
documents and the actual operation status, and promotes the implementation of policies such as capacity
compensation, long-term subsidies, and two-part electricity price. At the same time, the subordinate power plants
continue to strengthen the coordination work of equipment management and economic operation, and strive to
increase revenue from power generation and ancillary services.
2. Safety management: In the face of the unfavorable external environment of the normalization of COVID-19
pandemic prevention and control and the continuous and sporadic outbreaks of the pandemic in many places, the
company has continuously strengthened safety production management, consolidated the main responsibility for
pandemic prevention and control and safety production, and actively carried out safety production supervision and
management, continued to promote system safety construction, and earnestly supervised the implementation of
annual overhaul technical transformation and daily maintenance work of units through key safety inspections,
practical emergency drills, promotion of standardized overhaul management, and equipment status assessments.
We make efforts to overcome unfavorable situations such as the continued high natural gas price and the repeated
pandemic, so as to ensure a stable and orderly production safety situation.
3. In terms of fuel procurement: In the first half of 2022, due to the expected supply shortage caused by the
Russian-Ukrainian war, the supply reduction of Beixi-1, low inventories in Europe, and high temperature weather
in some countries, the international natural gas prices rose sharply, which drove up domestic gas prices, and the
company's natural gas purchase price has risen sharply compared with the same period in 2021. It is expected that
the natural gas purchase cost in the second half of 2022 will not be optimistic.Since the natural gas procurement
contract must be signed in advance, the contract gas has been basically determined when signing, due to the
characteristics of the electric power market, it is difficult to match the expected electricity generation with the
actual electricity generation, and the planned purchase quantity of natural gas is difficult to match the actual
pickup quantity. If the natural gas cannot be picked up according to the contract due to the influence of electricity
transaction marketization and other factors in the later period, which may cause related risks of insufficient pickup
of contractual gas quantity and fluctuations in prices of increased gas. The company will continue to optimize the
20
深圳南山热电股份有限公司 2022 年半年度报告全文
upstream and downstream cooperation, give full play to the advantages of large-scale procurement and the
regulating function of multiple gas sources, and try its best to reduce the cost of natural gas procurement while
ensuring the gas demand for power production.
4. In terms of lands of Nanshan Power Factory, during the reporting period, the company actively used every
opportunity to express its own demands and suggestions, but by the end of the reporting period, there was still
little effect. The company will keep close communication and contact with the relevant functional departments of
Shenzhen and Qianhai Authority, actively follow up the implementation of the government-related planning
progress, and seriously study the land related situation of Nanshan Power Factory with legal advisers, formulate
coping strategies and work plans so as to ensure the legitimate rights and interests of the listed company and all
shareholders.
21
深圳南山热电股份有限公司 2022 年半年度报告全文
Section IV. Corporate Governance
I. In the report period, the Company held annual shareholders’ general meeting and
extraordinary shareholders’ general meeting
1. Shareholders’ General Meeting in the report period
Ratio of
Session of investor Opening Date of
Type Resolution
meeting participati date disclosure
on
Deliberated and approved proposals including:
Annual Report on the Work of BOD for year of 2021; Report
General on the Work of BOS for year of 2021; Financial
Report for year of 2021; Profit Distribution Plan for
Meeting AGM 38.45% 2022-04-15 2022-04-15
year of 2021; Annual Report of 2021 (full-text) and
(AGM) of its Summary; Remuneration of the Chairman for year
2021 of 2022; Appointment of Auditing Institution for year
of 2022 and Remuneration Determination;
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
II. Change of the Directors, Supervisors and Senior Executive
√Applicable □Not applicable
Name Title Type Date Causes
Zhang Xiaoyin CFO Appointments 2022-06-13
III. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
the semi-annual year.
IV. Implementation of the equity incentive plan, employee stock ownership plan or other
employee incentives
□ Applicable √ Not applicable
The Company has no implementation of the equity incentive plan, employee stock ownership plan or other employee incentives in
the Period.
22
深圳南山热电股份有限公司 2022 年半年度报告全文
Section V. Environmental and Social Responsibility
I. Major environmental protection
The listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department
√Yes □No
Pollutant
Main Number Distributi
Enterprise Emission discharge Total
pollutant Way of of on of the Total Excessive
or concentra standard approved
and discharge discharge discharge discharge emission
subsidiary tion implemen emissions
features outlet outlet
ted
Implemen
Shenzhen In plant tation of
Nanshan Nitrogen area of “Shenzhe
Organized <15 20.34 457.5
2 Nanshan n Blue” 0
Power oxides emissions mg/m tons tons
Power emission
Co., Ltd. Factory standard<
15mg/m
Implemen
Shenzhen In plant tation of
New area of “Shenzhe
Nitrogen Organized <15 228.75
Power 1 Nanshan n Blue” 11.45 tons 0
oxides emissions mg/m tons
Industrial Power emission
Co., Ltd. Factory standard<
15mg/m
Emission
standards
Shen Nan
In plant for air
Dian
area of pollutants
(Zhongsh
Nitrogen Organized Zhongsha <25 from 324.50
an) 2 0.32 tons 0
oxides emissions n Nanlang mg/m thermal tons
Electric
Power power
Power
Plant plants
Co., Ltd.
GB13223
-2011
Construction and operation of the pollution controlling instruments
All pollution prevention and control facilities are operating normally, and all pollutant discharges are stable and up to standard.
Shenzhen Nanshan Power Co., Ltd and the gas units under Shenzhen New Power Industrial Co., Ltd are strictly control the pollutant
emissions in line with the relevant requirement of “The Sustainability Action Plan of “Shenzhen Blue” for 2018”(Shen Fu Ban Gui
(2018) No.6).
Environmental impact assessment of construction projects and other environmental protection administrative licenses
All the above three legal entities have passed the environmental impact assessment and have been filed in Guangdong Environmental
Protection Department. All of them have obtained the pollution discharge permits, and conduct routine environmental management in
strictly accordance with the requirement of pollution discharge permits.
23
深圳南山热电股份有限公司 2022 年半年度报告全文
Emergency plan for sudden environmental incident:
The emergency plan for sudden environmental incidents has been filed in Guangdong Environmental Protection Department and the
corresponding Municipal Environmental Protection Bureau.
Environmental self-monitoring program
The environmental self-monitoring program has been prepared and reviewed by the environmental protection department; the
information on the monitoring data is disclosed on the website of the environmental protection department on time.
Administrative penalties imposed for environmental issues during the reporting period
N/A
Other environmental information that should be disclosed
N/A
Measures taken to reducing the carbon emissions during the reporting period and their effectiveness
□Applicable √Not applicable
Other environmental protection related information
N/A
The Company shall comply with the relevant disclosure requirement for electricity-related industries of Shenzhen Stock Exchange
Self-Regulatory Guidelines for Listed Companies No.3 - Disclosure of Industry Information
II. Social Responsibility
The Company has not carried out targeted poverty alleviation work during the reporting period.
24
深圳南山热电股份有限公司 2022 年半年度报告全文
Section VI. Important Event
I. Commitments that the actual controller, shareholders, related parties, acquirer and the Company have
fulfilled during the reporting period and have not yet fulfilled by the end of reporting period
□Applicable √Not applicable
There was no commitments that the actual controller, shareholders, related parties, acquirer and the Company
have fulfilled during the reporting period and have not yet fulfilled by the end of the reporting period
II. Non-operational fund occupation from controlling shareholders and its related party
□Applicable √Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
III. External guarantee out of the regulations
□Applicable √Not applicable
No external guarantee out of the regulations occurred in the period.
IV. Appointment and non-reappointment (dismissal) of CPA
Whether the financial report of semi-annual report has been audited
□Yes √No
The semi-annual report of the Company is unaudited.
V. Explanation from Board of Directors and Supervisory Committee for “Non-standard audit
report” that issued by CPA
□Applicable √Not applicable
VI. Explanation from the BOD on the previous year’s “non-standard audit report”
□Applicable √Not applicable
VII. Bankruptcy reorganization
□Applicable √Not applicable
No bankruptcy reorganization for the Company in reporting period.
VIII. Litigation
Major litigation and arbitration
25
深圳南山热电股份有限公司 2022 年半年度报告全文
□Applicable √Not applicable
No major litigation and arbitration occurred in the Period.
Other litigation
□Applicable √Not applicable
IX. Penalty and rectification
□Applicable √Not applicable
X. Integrity of the Company and its controlling shareholders and actual controllers
√Applicable □Not applicable
During the reporting period, the company neither had any failure to implement the court’s effective judgments, nor had large amount
of due and unpaid debts that were, etc., and had a good credit. During the reporting period, the company had no controlling
shareholders or actual controllers.
XI. Major related party transaction
1. Related party transaction with routine operation concerned
□Applicable √Not applicable
The Company has no related party transaction with routine operation concerned occurred during the reporting
period.
2. Related party transactions by assets acquisition and sold
□Applicable Not applicable
No related party transactions by assets acquisition and sold for the Company in Period.
3. Main related transactions of mutual investment outside
Applicable □Not applicable
Total assets
Net assets of Net profit of
Main Registered of the
the investee the investee
Investee business of capital of the investee
Co-investors Affiliations company (10 company (10
company the investee investee company (10
thousand thousand
company company thousand
yuan) yuan)
yuan)
Shenzhen Shenzhen
Capital Yuanzhi
Holdings Ruixin New
Affiliated Investment
Co., Ltd. , Generation 100,000.00 50,127.38 50,127.38 127.38
corporations funds
Shenzhen Information
Yuanzhi Technology
Ruixin Private
26
深圳南山热电股份有限公司 2022 年半年度报告全文
Equity Equity
Investment Investment
Management Fund
Co., Ltd. Partnership
(Limited
Partnership)
Progress of major on-going
projects of the investee N/A
company (if applicable)
4. Contact of related credit and debt
□Applicable √Not applicable
No contact of related credit and debt occurred in the Period
5. Contact with the related finance companies
□Applicable √Not applicable
There are no deposits, loans, credits or other financial business between the Company, the related finance
companies and related parties.
6. Transactions between the finance company controlled by the Company and related parties
□Applicable √Not applicable
There are no deposits, loans, credits or other financial business between the finance companies controlled by the
Company and related parties
7. Other major related party transactions
□Applicable √Not applicable
There are no other major related party transactions occurred in the period
XII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
√Applicable □Not applicable
Explanation on trust
In accordance with the “Assets (Generator Sets) Custody Operation Contract of Shenzhen New Power Industrial Co., Ltd.” signed
with the New Power Company, the Company entrusted with management for the generator assets owned by New Power Company
(wholly-owned subsidiary of the Company). During the reporting period, the Company received an assets custody services of 10.0855
million Yuan
Gains/losses to the Company from projects that reached over 10% in total profit of the Company in reporting period
27
深圳南山热电股份有限公司 2022 年半年度报告全文
□Applicable √Not applicable
No gains or losses to the Company from projects that reached over 10% in total profit of the Company in reporting period.
(2) Contract
□Applicable √Not applicable
No contract for the Company in reporting period
(3) Leasing
□Applicable √Not applicable
No leasing for the Company in reporting period.
2. Major guarantees
□Applicable √Not applicable
No major guarantees occurred in the Period
3.Trust financing
√Applicable □Not applicable
In 10 thousand Yuan
Amount with
impairment
Outstanding accrual for the
Type Capital sources Amount occurred Overdue amount
balance overdue financial
products which has
not been recovered
Bank financial
Own funds 146,656.28 120,790.28 0 0
products
Total 146,656.28 120,790.28 0 0
Details of the single major amount, or high-risk trust investment with low security, poor fluidity and non-guaranteed
□Applicable √Not applicable
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□Applicable √Not applicable
4. Other material contracts
√Applicable □Not applicable
The The C The The The Nam The Pricing Ba W In The T Th
name name on date book asses e of base princip rg he ci perfo h e
28
深圳南山热电股份有限公司 2022 年半年度报告全文
of the of the tra of value sed the date les ai th de rman e in
contr contr ct signa of the value evalu evalu n er nc ce by d de
actin acted ob ture assets of the ation ation pri co e the at x
g comp je of the invol assets organ (if ce nn rel end e of
comp any ct contr ved invol izatio appli (1 ec ati of the o di
any act in the ved n (if cable 0 te on term f scl
contr in the appli ) th d d os
act contr cable ou tra is ur
(10 act ) sa ns cl e
thous (10 nd ac o
and thous Yu tio s
Yuan and an n u
) (if Yuan ) (Y r
appli ) (if /N e
cable appli )
) cable
)
The
contrac Fa
t is a il
frame
u
work
agreem r
ent, e
Pi price to
Th pe of the m
e Shen lin NG N eet
Com zhen will ot sp
pany, Gas e decide ap In
2018- eci
New Grou na N/A throug N pli progr fic
05-14
Powe p tur h ca ess di
r Co., consult bl scl
al
Com Ltd. ation e os
pany ga by ur
s supple e
mental re
agreem qu
ent ire
betwee m
n the en
two ts
parties
XIII. Other important events
√Applicable □Not applicable
1.The company has been recognized as a high-tech enterprise: On January 17, 2022, the company received the "Announcement on
the Filing of the Second Batch of High-tech Enterprises Recognized by Shenzhen in 2021" issued by the Office of the Leading Group
for Recognition and Management of National High-tech Enterprises, the company was recognized as a high-tech enterprise according
to the "Filing of the Second batch of High-tech Enterprises Recognized by Shenzhen in 2021". (For details, please refer to the Notice
29
深圳南山热电股份有限公司 2022 年半年度报告全文
of the Company Recognized as a High-Tech Enterprise disclosed by the company in China Securities Journal, Securities Times,
Hong Kong Commercial Daily and www.cninfo.com.cn, Notice No. : 2022-001)
2.Start on the shutdown and withdrawal of two sets of 9E gas-fired units of Shen Nan Dian (Zhongshan) Electric Power Co., Ltd.: On
February 21, 2022, upon consideration and approval at the fifth extraordinary meeting of the ninth board of directors of the company,
the company launched the shutdown and withdrawal of two sets of 9E gas-fired units in Shen Nan Dian (Zhongshan) Power Co., Ltd.
(For details, please refer to the Resolution of the fifth extraordinary meeting of the ninth BOD disclosed by the company in China
Securities Journal, Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn, Notice No. : 2022-003)
3.Assets disposal of units 7# and 9# of Nanshan Power Factory: On March 23, 2022, the company held the 3 rd session of the 9th board
of directors, reviewed and approved the "Proposal on the Assets Disposal of Units 7# and 9# of Nanshan Power Factory", agreed to
carry out the assets disposal of units 7# and 9# of Nanshan Power Factory, and agreed to publicly list and transfer on Shenzhen
United Property and Equity Exchange (hereinafter referred to as "Shenzhen Stock Exchange") at the valuation of gas turbine 7# ,
boiler 7# and steam turbine 9# carried out by Shenzhen Pengxin Assets Appraisal Land Real Estate Appraisal Co., Ltd. by referring
to the relevant provisions of the "Measures for the Supervision and Administration of State-owned Assets Transactions of Enterprise".
In May, the company received the "Transferee Qualification Confirmation Letter" and "Online Bidding Transaction Confirmation
Letter" from the Shenzhen Stock Exchange. According to the above documents, Shanghai Qingjie New Energy Technology Co., Ltd.
became the transferee of the transfer project including 9Egas turbine units, and the transfer price was 10,505,930 yuan; Shaanxi
Jinhui Renewable Resources Co., Ltd. successfully acquired a batch of equipment such as waste heat boiler 7# and steam turbine 9#
through open bidding at the online bidding meeting, and the transaction price was 6,336,014 yuan. (For details, please refer to the
Resolution of 3rd Session of 9th BOD disclosed by the company in China Securities Journal, Securities Times, Hong Kong
Commercial Daily and www.cninfo.com.cn, Notice No. : 2022-004; and Voluntary Disclosure of the Progress of Assets Disposal on
Units 7# and 9# of Nanshan Power Factory, Notice No. : 2022-016 )
4. Resignation of Independent Director: On May 13, 2022, the board of directors of the company received a written resignation report
submitted by Mr. Mo Jianmin, an independent director of the company. Due to the resignation of Mr. Mo Jianmin, the number of
independent directors of the company will be less than one-third of the members of the board of directors. According to relevant
regulations, his resignation report will take effect after the election of new independent directors at the company's general meeting of
shareholders. Prior to this, Mr. Mo Jianmin will continue to perform his duties in accordance with relevant laws, administrative
regulations, departmental rules and normative documents. On August 2, 2022, the first extraordinary general meeting of shareholders
in 2022 deliberated and passed the proposal on by election of independent directors. Mr. Mo Jianmin's resignation took effect after
Ms. Huang Xiqin was elected as an independent director of the ninth board of directors of the company. (For details, please refer to
the Notice on Resignation of Independent Director disclosed by the company in China Securities Journal, Securities Times, Hong
Kong Commercial Daily and www.cninfo.com.cn, Notice No. : 2022-017,2022-031)
5. Investment in Yuanzhi Ruixin New Generation Information Technology Equity Investment Fund: On May 25, 2022, the company
received a notice from the fund manager, Shenzhen Yuanzhi Ruixin Equity Investment Management Co., Ltd., that Shenzhen Yuanzhi
Ruixin New Generation Information Technology Private Equity Investment Fund Partnership (Limited Partnership) had completed
the fund filing procedures at the Asset Management Association of China in accordance with the requirements of the Securities
Investment Fund Law and the Interim Measures for the Supervision and Administration of Private Investment Funds and other laws
and regulations. (For details, please refer to the Notice on Completion of the Private Investment Funding Filing of Shenzhen Yuanzhi
Ruixin New Generation Information Technology Private Equity Investment Fund Partnership (Limited Partnership) disclosed by the
company in China Securities Journal, Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn, Notice No. :
2022-018)
30
深圳南山热电股份有限公司 2022 年半年度报告全文
6. The independent energy storage project of the company and its holding subsidiary Shen Nan Dian (Zhongshan) Electric Power Co.,
Ltd.: In June 2022, the company and its holding subsidiary Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. respectively
obtained the "Shenzhen Social Investment Project Record Certificate" issued by Shenzhen Nanshan District Development and
Reform Bureau and the "Guangdong Provincial Enterprise Investment Project Record Certificate" issued by Zhongshan Development
and Reform Bureau, approving the filing of the independent energy storage demonstration project phase I of the technical
transformation and upgrading of the decommissioned equipment of Shennandian Nanshan Power Factory and the filing of the
300MW/600MWh independent energy storage power station (the first-phase project) in Cuiheng New District, Zhongshan City. (For
details, please refer to the Notice on Obtaining a Record of the Independent Energy Storage Project of the company and its holding
subsidiary Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. disclosed by the company in China Securities Journal, Securities
Times, Hong Kong Commercial Daily and www.cninfo.com.cn, Notice No. : 2022-020)
7. Receipt of the VAT withholding Tax Refund at Period-end: On June 10, 2022, the Company received a tax refund of
317,249,405.40 yuan. (For details, please refer to the Notice on Receipt of VAT Retained Tax Refund at Period-end disclosed by the
company in China Securities Journal, Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn, Notice No. :
2022-021)
8. Abnormal fluctuations in stock trading: On June 17, June 20, and June 21, 2022, the trading price of the company's A-share stock
(stock abbreviation: Shennandian A, stock code: 000037) had the closing price rise with a cumulative deviation value rate of more
than 20% for three consecutive trading days; while the cumulative deviation value rate of closing price decline reached more than
20% for three consecutive trading days on June 24, June 27, and June 28, 2022. According to relevant regulations of the "Trading
Rules of Shenzhen Stock Exchange", the above two stock trading fluctuations are abnormal fluctuations in stock trading, and the
company has separately disclosed the "Announcement on Abnormal Fluctuations in Stock Trading". (For details, please refer to the
Notice on Abnormal Fluctuations in Stock Trading disclosed by the company in China Securities Journal, Securities Times, Hong
Kong Commercial Daily and www.cninfo.com.cn, Notice No. : 2022-022, 2022-023)
In addition to the above matters, the company actively promoted the investment in Zhuhai Hengqin Zhuozhi Investment Partnership
(Limited Partnership), and there was no progress or change in meeting the disclosure standards during the reporting period. There
was no progress or change in the refund of the company’s "Project Technical Improvement Benefit Fund" or in the Xinjiang aid
project of Guangdong Province in which the company participated in 2013 during the reporting period.
XIV. Significant event of subsidiary of the Company
□Applicable √Not applicable
31
深圳南山热电股份有限公司 2022 年半年度报告全文
Section VII. Changes Unit: shares and Particulars about Shareholders
I. Changes Unit: share Capital
1. Changes Unit: share Capital
Unit: share
Increase/Decrease in the
Before the Change After the Change
Change (+, -)
B
Cap
o
itali
n O
New zati
u t S
share on
Proportio s h ub Proportio
Amount s of Amount
n s e to n
issue pub
h r tal
d lic
ar s
rese
e
rve
s
I. Restricted shares 12,994 0.0022% 12,994 0.0022%
1. State-owned shares
2. State-owned legal
person’s shares
3. Other domestic shares 12,994 0.0022% 12,994 0.0022%
Including: Domestic legal
person’s shares
Domestic natural person’s
12,994 0.0022% 12,994 0.0022%
shares
4. Foreign shares
Including: Foreign legal
person’s shares
Foreign natural person’s
shares
II. Unrestricted shares 602,749,602 99.9978% 602,749,602 99.9978%
1. RMB Ordinary shares 338,895,156 56.2236% 338,895,156 56.2236%
2. Domestically listed
263,854,446 43.7742% 263,854,446 43.7742%
foreign shares
3. Overseas listed foreign
shares
4. Others
III. Total shares 602,762,596 100.00% 602,762,596 100.00%
Reasons for share changed
32
深圳南山热电股份有限公司 2022 年半年度报告全文
□Applicable √Not applicable
Approval of share changed
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Progress of shares buy-back (repurchase)
□Applicable √Not applicable
Implementation progress of reducing holdings of shares buy-back by centralized bidding
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□Applicable √Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□Applicable √Not applicable
2. Changes of restricted shares
□Applicable Not applicable
II. Securities issuance and listing
□Applicable √Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
Unit: share
Total number of preferred shareholders
Total number of ordinary
whose voting rights were restored at end
shareholders at end of the 47,808 0
of the reporting period (if applicable) (see
reporting period
note 8)
Particulars about common shares held above 5% by shareholders or top ten common shareholders
Nature Proportio Amount of Amount of Amount of Information of shares
Changes
Full name of of n of common restricted common pledged, tagged or
in report frozen
Shareholders sharehol shares shares held common shares held
period
der held at the end of shares held without State Amount
33
深圳南山热电股份有限公司 2022 年半年度报告全文
reporting restriction of
period share
HONG KONG
Oversea
NAM HOI
s legal 15.28% 92,123,248 92,123,248
(INTERNATIO
person
NAL) LTD.
Shenzhen State-o
Guangju wned
12.22% 73,666,824 73,666,824
Industrial Co., legal
Ltd person
State-o
Shenzhen
wned
Energy Group 10.80% 65,106,130 65,106,130
legal
Co., Ltd.
person
BOCI Oversea
SECURITIES s legal 2.37% 14,267,038 -343,824 14,267,038
LIMITED person
Domesti
Zeng Ying c nature 1.19% 7,159,600 7,159,600
person
China
Oversea
Merchants
s legal 0.91% 5,480,428 -137,800 5,480,428
Securities H.K.
person
Co., Ltd.
Domesti
Meiyi c non
Investment state-ow
0.87% 5,218,100 100 5,218,100
Property Co., ned
Ltd. legal
person
Oversea
LISHERYNZH
s natural 0.65% 3,922,328 385,828 3,922,328
ANMING
person
Haitong
International
Oversea
Securities
s legal 0.65% 3,908,357 -1,000 3,908,357
Company
person
Limited-Accoun
t Client
Guosen
Oversea
Securities (HK)
s legal 0.61% 3,651,901 3,651,901
Brokerage
person
Limited
Strategy investors or
general corporation comes
top 10 shareholders due to Not applicable
rights issue (if applicable)
(see note 3)
1. 100% equity of HONG KONG NAM HOI (INTERNATIONAL) LIMITED 100% held by
Explanation on associated
Shenzhen Energy Group Co., Ltd.;
relationship among the
2. The Company is unknown whether there exists associated relationship or belongs to the
aforesaid shareholders
consistent actor among the other shareholders.
Description of the above
N/A
shareholders in relation to
34
深圳南山热电股份有限公司 2022 年半年度报告全文
delegate/entrusted voting
rights and abstention from
voting rights.
Special note on the
repurchase account among
N/A
the top 10 shareholders (if
applicable) (see note 11)
Particular about top ten shareholders with un-lock up common stocks held
Amount of common shares held without restriction at Type of shares
Shareholders’ name
Period-end Type Amount
Domestically
HONG KONG NAM HOI
92,123,248 listed foreign 92,123,248
(INTERNATIONAL) LTD.
shares
Shenzhen Guangju RMB common
73,666,824 73,666,824
Industrial Co., Ltd shares
Shenzhen Energy Group RMB common
65,106,130 65,106,130
Co., Ltd. shares
Domestically
BOCI SECURITIES
14,267,038 listed foreign 14,267,038
LIMITED
shares
Domestically
Zeng Ying 7,159,600 listed foreign 7,159,600
shares
Domestically
China Merchants Securities
5,480,428 listed foreign 5,480,428
H.K. Co., Ltd.
shares
Meiyi Investment Property RMB common
5,218,100 5,218,100
Co., Ltd. shares
Domestically
LISHERYNZHANMING 3,922,328 listed foreign 3,922,328
shares
Haitong International Domestically
Securities Company 3,908,357 listed foreign 3,908,357
Limited-Account Client shares
Domestically
Guosen Securities (HK)
3,651,901 listed foreign 3,651,901
Brokerage Limited
shares
Expiation on associated
relationship or consistent
1. 100% equity of HONG KONG NAM HOI (INTERNATIONAL) LIMITED 100% held by
actors within the top 10
Shenzhen Energy Group Co., Ltd.;
un-restrict shareholders and
2. The Company is unknown whether there exists associated relationship or belongs to the
between top 10 un-restrict
consistent actor among the other shareholders.
shareholders and top 10
shareholders
Explanation on top 10
shareholders involving
N/A
margin business (if
applicable) (see note 4)
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
35
深圳南山热电股份有限公司 2022 年半年度报告全文
□Yes √No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.
IV. Changes of shares held by directors, supervisors and senior executives
□Applicable √Not applicable
Shares held by directors, supervisors and senior officers have no changes in reporting period, found more details in Annual Report
2021.
V. Changes in controlling shareholders or actual controllers
Change of controlling shareholder during the reporting period
□Applicable √Not applicable
The Company had no change of controlling shareholder during the reporting period
Change of actual controller during the reporting period
□Applicable √Not applicable
The Company had no change of actual controller during the reporting period
36
深圳南山热电股份有限公司 2022 年半年度报告全文
Section VIII. Preferred Stock
□Applicable √Not applicable
The Company had no preferred stock in the Period.
37
深圳南山热电股份有限公司 2022 年半年度报告全文
Section IX. Corporate Bonds
□Applicable √Not applicable
38
深圳南山热电股份有限公司 2022 年半年度报告全文
Section X. Financial Report
I. Audit report
Whether the semi annual report is audited
□Yes √No
The company's semi annual financial report has not been audited
II. Financial Statement
Units of the annotations of Financial Statement are CNY/RMB
1. Consolidated balance sheet
Item June 30, 2022 December 31, 2021
Current assets:
Monetary fund 470,018,109.19 689,604,633.59
Trading financial assets 1,280,776,513.22 632,874,406.39
Derivative financial assets
Note receivable
Account receivable 136,622,627.23 73,610,161.02
Receivable financing
Accounts paid in advance 35,570,753.71 64,415,236.66
Other account receivable 27,889,289.20 25,841,206.66
Including: Interest receivable
Dividend receivable
Inventory 86,153,552.73 88,500,991.13
Contractual assets 1,040,000.00
Assets held for sale
Non-current asset due within one year
Other current assets 8,925,003.96 331,868,661.62
Total current assets 2,045,955,849.24 1,907,755,297.07
Non-current assets:
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 5,515,052.42 6,986,655.19
Other equity instrument investment 300,615,000.00 200,615,000.00
Other non-current financial assets
Investment real estate 1,917,733.00 2,009,051.80
Fixed assets 616,207,380.43 643,256,398.30
Construction in process 5,609,774.20 6,088,768.51
Productive biological asset
39
深圳南山热电股份有限公司 2022 年半年度报告全文
Oil and gas asset
Right-of-use assets
Intangible assets 20,121,466.00 20,465,906.86
Expense on Research and Development
Goodwill
Long-term expenses to be apportioned 1,467,794.74 1,716,460.30
Deferred income tax asset 1,109,286.38 1,109,286.38
Other non-current asset
Total non-current asset 952,563,487.17 882,247,527.34
Total assets 2,998,519,336.41 2,790,002,824.41
Current liabilities:
Short-term loans 1,334,338,596.65 858,444,163.25
Trading financial liability
Derivative financial liability
Note payable 135,025,883.27
Account payable 15,615,185.36 6,703,466.71
Accounts received in advance
Contractual liability
Wage payable 43,789,015.63 41,533,020.96
Taxes payable 5,501,289.25 4,145,839.89
Other account payable 22,717,231.20 62,678,254.02
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1,421,961,318.09 1,108,530,628.10
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability
Long-term account payable
Long-term wages payable
Accrual liability 15,000,000.00 15,000,000.00
Deferred income 84,931,517.77 88,079,970.09
Deferred income tax liabilities
Other non-current liabilities 50,310.78 50,310.78
Total non-current liabilities 99,981,828.55 103,130,280.87
Total liabilities 1,521,943,146.64 1,211,660,908.97
Shareholders' equity:
Share capital 602,762,596.00 602,762,596.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
40
深圳南山热电股份有限公司 2022 年半年度报告全文
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
Retained profit 225,253,070.72 319,351,219.81
Total equity attributable to shareholders of the
1,521,194,986.42 1,615,293,135.51
parent company
Minority interests -44,618,796.65 -36,951,220.07
Total shareholders' equity 1,476,576,189.77 1,578,341,915.44
Total liabilities and shareholders' equity 2,998,519,336.41 2,790,002,824.41
Legal Representative: Li Xinwei
Person in charge of accounting works: Chen Yuhui
Chief Financial Officer: Zhang Xiaoyin
Person in charge of accounting institute: Lin Xiaojia
2. Balance Sheet of Parent Company
Item June 30, 2022 December 31, 2021
Current assets:
Monetary fund 445,197,216.30 592,751,213.88
Trading financial assets 1,270,776,513.22 622,874,406.39
Derivative financial assets
Note receivable 180,000,000.00
Account receivable 71,242,570.68 35,966,056.15
Receivable financing
Accounts paid in advance 8,619,927.25 60,381,018.05
Other account receivable 560,100,745.56 618,436,063.60
Including: Interest receivable
Dividend receivable
Inventory 79,205,383.71 79,904,055.96
Contractual assets
Assets held for sale
Non-current assets maturing within one year
Other current assets 321,673,866.15
Total current assets 2,615,142,356.72 2,331,986,680.18
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 287,301,269.81 287,301,269.81
Other equity instrument investment 160,615,000.00 60,615,000.00
41
深圳南山热电股份有限公司 2022 年半年度报告全文
Other non-current financial assets
Investment real estate
Fixed assets 291,918,670.25 314,308,562.41
Construction in process 1,156,738.42 1,399,062.85
Productive biological assets
Oil and natural gas assets
Right-of-use assets
Intangible assets 219,783.25 247,959.31
Research and development costs
Goodwill
Long-term deferred expenses 1,309,953.07 1,513,521.01
Deferred income tax assets
Other non-current assets
Total non-current assets 742,521,414.80 665,385,375.39
Total assets 3,357,663,771.52 2,997,372,055.57
Current liabilities
Short-term loans 634,338,596.65 458,444,163.25
Trading financial liability
Derivative financial liability
Note payable 700,000,000.00 535,025,883.27
Account payable 9,768,358.22 1,280,357.11
Accounts received in advance
Contractual liability
Wage payable 31,876,666.22 29,251,444.37
Taxes payable 2,019,199.96 562,233.61
Other accounts payable 162,958,997.99 132,397,663.39
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1,540,961,819.04 1,156,961,745.00
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
Accrual liabilities
Deferred income 50,316,898.18 52,036,600.90
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 50,316,898.18 52,036,600.90
Total liabilities 1,591,278,717.22 1,208,998,345.90
42
深圳南山热电股份有限公司 2022 年半年度报告全文
Shareholders' 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 540,751,021.00 562,739,676.37
Total shareholders' equity 1,766,385,054.30 1,788,373,709.67
Total liabilities and shareholders' equity 3,357,663,771.52 2,997,372,055.57
Legal Representative: Li Xinwei
Person in charge of accounting works: Chen Yuhui
Chief Financial Officer: Zhang Xiaoyin
Person in charge of accounting institute: Lin Xiaojia
3. Consolidated Profit Statement
Item January-June 2022 January-June 2021
I. Total operating income 229,243,542.07 376,602,393.38
Including: Operating income 229,243,542.07 376,602,393.38
II. Total operating cost 362,962,644.74 399,762,506.97
Including: Operating cost 282,486,432.21 351,210,223.91
Tax and extras 2,896,262.61 1,646,013.40
Sales expense 696,436.80
Administrative expense 43,777,644.68 40,014,168.55
R&D expense 17,072,589.13 3,360,629.60
Financial expense 16,729,716.11 2,835,034.71
Including: Interest expenses 20,539,845.79 13,028,372.76
Interest income 3,594,848.74 10,344,030.33
Add: other income 4,440,645.78 3,368,979.50
Investment income (Loss is listed with “-”) 27,741,227.07 12,828,359.95
Including: Investment income on affiliated company
-1,471,602.77 -1,148,715.33
and joint venture
The termination of income recognition for
financial assets measured by amortized cost
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 (Loss is listed with “-”) 974,699.74
43
深圳南山热电股份有限公司 2022 年半年度报告全文
III. Operating profit (Loss is listed with “-”) -101,537,229.82 -5,988,074.40
Add: Non-operating income 5,261,868.55
Less: Non-operating expense 228,495.85 35,388.00
IV. Total profit (Loss is listed with “-”) -101,765,725.67 -761,593.85
Less: Income tax expense
V. Net profit (Net loss is listed with “-”) -101,765,725.67 -761,593.85
(i) Classify by business continuity -101,765,725.67 -761,593.85
1.continuous operating net profit (net loss listed with ‘-”) -101,765,725.67 -761,593.85
2.termination of net profit (net loss listed with ‘-”)
(ii) Classify by ownership -101,765,725.67 -761,593.85
1.Net profit attributable to owner’s of parent company -94,098,149.09 1,456,269.68
2.Minority shareholders’ gains and losses -7,667,576.58 -2,217,863.53
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(The effective portion of the
gain/loss from cash flow hedge)
6.Translation differences arising on translation of
foreign currency financial statements
7.Other
Net after-tax of other comprehensive income attributable to
minority shareholders
VII. Total comprehensive income -101,765,725.67 -761,593.85
Total comprehensive income attributable to owners of
-94,098,149.09 1,456,269.68
parent Company
Total comprehensive income attributable to minority
-7,667,576.58 -2,217,863.53
shareholders
VIII. Earnings per share:
(i) Basic earnings per share (yuan/share) -0.1561 0.0024
(ii) Diluted earnings per share (yuan/share) -0.1561 0.0024
Legal Representative: Li Xinwei
Person in charge of accounting works: Chen Yuhui
Chief Financial Officer: Zhang Xiaoyin
44
深圳南山热电股份有限公司 2022 年半年度报告全文
Person in charge of accounting institute: Lin Xiaojia
4. Profit Statement of Parent Company
Item January-June 2022 January-June 2021
I. Operating income 129,074,352.66 184,931,162.25
Less: Operating cost 153,243,699.14 171,383,039.58
Taxes and surcharge 1,561,901.55 182,295.14
Sales expenses - -
Administration expenses 14,624,528.90 18,205,121.93
R&D expenses 11,637,676.90 -
Financial expenses 1,145,966.46 -8,003,413.78
Including: interest expenses 18,356,302.31 13,876,981.75
Interest income 17,449,061.98 21,956,978.18
Add: other income 2,453,965.18 1,894,186.55
Investment income (Loss is listed with “-”) 28,915,295.59 13,977,075.28
Including: Investment income on affiliated Company
and joint venture
The termination of income recognition for
financial assets measured by amortized cost
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 (Loss is listed with “-”) 944,667.70
II. Operating profit (Loss is listed with “-”) -21,770,159.52 19,980,048.91
Add: Non-operating income
Less: Non-operating expense 218,495.85
III. Total Profit (Loss is listed with “-”) -21,988,655.37 19,980,048.91
Less: Income tax
IV. Net profit (Net loss is listed with “-”) -21,988,655.37 19,980,048.91
(i) continuous operating net profit (net loss listed with ‘-”) -21,988,655.37 19,980,048.91
(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 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
45
深圳南山热电股份有限公司 2022 年半年度报告全文
3.Amount of financial assets re-classify to other
comprehensive income
4.Credit impairment provision for other debt
investment
5.Cash flow hedging reserve(The effective portion of the
gain/loss from cash flow hedge)
6.Translation differences arising on translation of
foreign currency financial statements
7.Other
VI. Total comprehensive income -21,988,655.37 19,980,048.91
VII. Earnings per share:
(i) Basic earnings per share (yuan/share)
(ii) Diluted earnings per share (yuan/share)
Legal Representative: Li Xinwei
Person in charge of accounting works: Chen Yuhui
Chief Financial Officer: Zhang Xiaoyin
Person in charge of accounting institute: Lin Xiaojia
5. Consolidated Cash Flow Statement
Item January-June 2022 January-June 2021
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
210,746,338.10 455,910,102.76
services
Write-back of tax received 321,785,326.40 188,709.78
Other cash received concerning operating activities 45,493,756.61 15,878,060.82
Subtotal of cash inflow arising from operating activities 578,025,421.11 471,976,873.36
Cash paid for purchasing commodities and receiving labor
283,749,702.63 287,613,597.56
service
Cash paid to/for staff and workers 64,322,418.53 79,004,549.15
Taxes paid 7,023,037.32 11,130,068.18
Other cash paid concerning operating activities 22,342,179.33 25,307,945.48
Subtotal of cash outflow arising from operating activities 377,437,337.81 403,056,160.37
Net cash flows arising from operating activities 200,588,083.30 68,920,712.99
II. Cash flows arising from investing activities:
Cash received from recovering investment
Cash received from investment income 19,707,290.27 13,595,677.64
Net cash received from disposal of fixed, intangible and
1,812,386.50
other long-term assets
Net cash received from disposal of subsidiaries and other
units
Other cash received concerning investing activities 5,000,000.00
Subtotal of cash inflow from investing activities 19,707,290.27 20,408,064.14
46
深圳南山热电股份有限公司 2022 年半年度报告全文
Cash paid for purchasing fixed, intangible and other
2,242,860.09 28,044,760.20
long-term assets
Cash paid for investment 747,899,274.61 434,905,964.38
Net cash received from subsidiaries and other units obtained
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 750,142,134.70 462,950,724.58
Net cash flows arising from investing activities -730,434,844.43 -442,542,660.44
III. Cash flows arising from financing activities
Cash received from absorbing investment 42,483.00
Including: Cash received from absorbing minority
shareholders’ investment by subsidiaries
Cash received from loans 1,021,949,358.06 514,022,740.80
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 1,021,949,358.06 514,065,223.80
Cash paid for settling debts 706,518,623.08 438,233,285.00
Cash paid for dividend and profit distributing or interest
5,466,201.94 14,928,444.20
paying
Including: Dividend and profit of minority shareholder paid
by subsidiaries
Other cash paid concerning financing activities
Subtotal of cash outflow from financing activities 711,984,825.02 453,161,729.20
Net cash flows arising from financing activities 309,964,533.04 60,903,494.60
IV. Influence on cash and cash equivalents due to fluctuation in
295,703.69 -59,561.89
exchange rate
V. Net increase of cash and cash equivalents -219,586,524.40 -312,778,014.74
Add: Balance of cash and cash equivalents at the period
689,604,633.59 764,601,272.21
-begin
VI. Balance of cash and cash equivalents at the period -end 470,018,109.19 451,823,257.47
Legal Representative: Li Xinwei
Person in charge of accounting works: Chen Yuhui
Chief Financial Officer: Zhang Xiaoyin
Person in charge of accounting institute: Lin Xiaojia
6. Cash Flow Statement of Parent Company
Item January-June 2022 January-June 2021
I. Cash flows arising from operating activities:
Cash received from selling commodities and providing labor
195,459,447.73 339,874,588.88
services
Write-back of tax received 317,508,755.71 181,606.65
Other cash received concerning operating activities 882,162,936.47 81,393,879.95
47
深圳南山热电股份有限公司 2022 年半年度报告全文
Subtotal of cash inflow arising from operating activities 1,395,131,139.91 421,450,075.48
Cash paid for purchasing commodities and receiving labor
139,104,100.10 115,934,173.38
service
Cash paid to/for staff and workers 42,760,321.94 56,654,760.87
Taxes paid 366,550.16 909,616.90
Other cash paid concerning operating activities 358,690,786.29 149,731,282.02
Subtotal of cash outflow arising from operating activities 540,921,758.49 323,229,833.17
Net cash flows arising from operating activities 854,209,381.42 98,220,242.31
II. Cash flows arising from investing activities:
Cash received from recovering investment
Cash received from investment income 19,707,290.27 13,595,677.64
Net cash received from disposal of fixed, intangible and
- 1,756,774.50
other long-term assets
Net cash received from disposal of subsidiaries and other
- -
units
Other cash received concerning investing activities - -
Subtotal of cash inflow from investing activities 19,707,290.27 15,352,452.14
Cash paid for purchasing fixed, intangible and other
780,194.99 26,800,456.86
long-term assets
Cash paid for investment 747,899,274.61 315,905,964.38
Net cash received from subsidiaries and other units obtained - 118,957,517.00
Other cash paid concerning investing activities
Subtotal of cash outflow from investing activities 748,679,469.60 461,663,938.24
Net cash flows arising from investing activities -728,972,179.33 -446,311,486.10
III. Cash flows arising from financing activities
Cash received from absorbing investment
Cash received from loans 439,191,858.06 514,022,740.80
Other cash received concerning financing activities
Subtotal of cash inflow from financing activities 439,191,858.06 514,022,740.80
Cash paid for settling debts 706,518,623.08 438,233,285.00
Cash paid for dividend and profit distributing or interest
5,466,201.94 14,928,444.20
paying
Other cash paid concerning financing activities - -
Subtotal of cash outflow from financing activities 711,984,825.02 453,161,729.20
Net cash flows arising from financing activities -272,792,966.96 60,861,011.60
IV. Influence on cash and cash equivalents due to fluctuation in
1,767.29 -785.91
exchange rate
V. Net increase of cash and cash equivalents -147,553,997.58 -287,231,018.10
Add: Balance of cash and cash equivalents at the period
592,751,213.88 656,244,294.18
-begin
48
深圳南山热电股份有限公司 2022 年半年度报告全文
VI. Balance of cash and cash equivalents at the period -end 445,197,216.30 369,013,276.08
Legal Representative: Li Xinwei
Person in charge of accounting works: Chen Yuhui
Chief Financial Officer: Zhang Xiaoyin
Person in charge of accounting institute: Lin Xiaojia
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Period
January-June 2022
Owners’ equity attributable to the parent Company
Other
equity instrument Other
Minori Total
Perpe Less: compr Provisi
Item Share Reaso Surplu Retain ty owners
Capital Invent ehensi on of Subtot
capita Prefe tual 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 e
secur
ities
I. Balance at the 602,7 362,77 332,90 319,35 1,615, -36,95 1,578,
-2,500,
end of the last 62,59 0,922. 8,397. 1,219. 293,13 1,220. 341,91
000.00
year 6.00 10 60 81 5.51 07 5.44
Add:
Changes of
accounting
policy
Error
correction of the
last period
Enterprise
combine under
the same control
Other
602,7 362,77 332,90 319,35 1,615, -36,95 1,578,
II. Balance at -2,500,
62,59 0,922. 8,397. 1,219. 293,13 1,220. 341,91
year-begin 000.00
6.00 10 60 81 5.51 07 5.44
III. Increase/
Decrease in this -94,09 -94,09 -101,7
-7,667,
year (Decrease 8,149. 8,149. 65,725
576.58
is listed with 09 09 .67
“-”)
(i) Total -94,09 -94,09 -101,7
-7,667,
comprehensive 8,149. 8,149. 65,725
576.58
income 09 09 .67
(ii) Owners’
devoted and
decreased
capital
1.Common
shares invested
by shareholders
2. Capital
invested by
holders of other
equity
instruments
49
深圳南山热电股份有限公司 2022 年半年度报告全文
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
income
6. Other
(V) Reasonable
reserve
1. Withdrawal
in the report
period
2. Usage in the
report period
(VI) Others
IV. Balance at 602,7 362,77 332,90 225,25 1,521, -44,61 1,476,
-2,500,
the end of the 62,59 0,922. 8,397. 3,070. 194,98 8,796. 576,18
000.00
report period 6.00 10 60 72 6.42 65 9.77
Last Period
January-June 2021
Item
Owners’ equity attributable to the parent Company Minorit Total
50
深圳南山热电股份有限公司 2022 年半年度报告全文
Other y owners’
equity instrument Other interest equity
Perp Less: compr Provisi s
Share Reaso Surplu Retain
etual Capital Invent ehensi on of Subtot
capita Prefe nable s ed Other
capit reserve ory ve genera al
l rred Other reserve reserve profit
al shares incom l risk
stock e
secur
ities
I. Balance at 602,7 362,77 332,90 758,79 2,054, 2,087,7
-2,500, 33,000,
the end of the 62,59 0,922. 8,397. 9,931. 741,84 42,521.
000.00 673.95
last year 6.00 10 60 94 7.64 59
Add:
Changes of
accounting
policy
Error
correction of
the last period
Enterprise
combine under
the same
control
Other
602,7 362,77 332,90 758,79 2,054, 2,087,7
II. Balance at -2,500, 33,000,
62,59 0,922. 8,397. 9,931. 741,84 42,521.
year-begin 000.00 673.95
6.00 10 60 94 7.64 59
III. Increase/
Decrease in this
1,456, 1,456, -2,217, -761,59
year (Decrease
269.68 269.68 863.53 3.85
is listed with
“-”)
(i) Total
1,456, 1,456, -2,217, -761,59
comprehensive
269.68 269.68 863.53 3.85
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. Withdrawal
of general risk
provisions
3. Distribution
for owners (or
shareholders)
4. Other
51
深圳南山热电股份有限公司 2022 年半年度报告全文
(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 602,7 362,77 332,90 760,25 2,056, 2,086,9
-2,500, 30,782,
the end of the 62,59 0,922. 8,397. 6,201. 198,11 80,927.
000.00 810.42
report period 6.00 10 60 62 7.32 74
Legal Representative: Li Xinwei
Person in charge of accounting works: Chen Yuhui
Chief Financial Officer: Zhang Xiaoyin
Person in charge of accounting institute: Lin Xiaojia
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Period
January-June 2022
Other equity instrument
Other
Item Perpet Capital Less: Reasona Total
Share Preferr compreh Surplus Retaine
ual public Inventor ble Other owners’
capital ed Other ensive reserve d profit
capital reserve y shares reserve equity
stock income
securiti
52
深圳南山热电股份有限公司 2022 年半年度报告全文
es
I. Balance at the 602,76 562,73
289,963, 332,908, 1,788,373,
end of the last 2,596.0 9,676.3
039.70 397.60 709.67
year 0 7
Add:
Changes of
accounting
policy
Error
correction of the
last period
Other
602,76 562,73
II. Balance at 289,963, 332,908, 1,788,373,
2,596.0 9,676.3
year-begin 039.70 397.60 709.67
0 7
III. Increase/
Decrease in this -21,988 -21,988,65
year (Decrease is ,655.37 5.37
listed with “-”)
(i) Total
-21,988 -21,988,65
comprehensive
,655.37 5.37
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
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
53
深圳南山热电股份有限公司 2022 年半年度报告全文
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 602,76 540,75
289,963, 332,908, 1,766,385,
the end of the 2,596.0 1,021.0
039.70 397.60 054.30
report period 0 0
Last period
January-June 2021
Other equity
instrument
Other
Item Perpet Capital Less: Total
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
289,963 332,908 685,077,9 1,910,712,0
end of the last 2,596.
,039.70 ,397.60 73.07 06.37
year 00
Add:
Changes of
accounting
policy
Error
correction of
the last period
Other
602,76
II. Balance at 289,963 332,908 685,077,9 1,910,712,0
2,596.
year-begin ,039.70 ,397.60 73.07 06.37
00
III. Increase/
Decrease in this
19,980,04 19,980,048.
year (Decrease
8.91 91
is listed with
“-”)
(i) Total
19,980,04 19,980,048.
comprehensive
8.91 91
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
54
深圳南山热电股份有限公司 2022 年半年度报告全文
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
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
289,963 332,908 705,058,0 1,930,692,0
the end of the 2,596.
,039.70 ,397.60 21.98 55.28
report period 00
Legal Representative: Li Xinwei
Person in charge of accounting works: Chen Yuhui
Chief Financial Officer: Zhang Xiaoyin
Person in charge of accounting institute: Lin Xiaojia
55
Shenzhen Nanshan Power Co., Ltd.
Annotations to the semi-annual financial statement of 2022
(Unless otherwise stated, the amount of unit is RMB/CNY)
I. Company Profile
(1) Profile
Shenzhen Nanshan Power Co., Ltd (hereinafter, “Company” or “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 August 17, 2022.
(2) Scope of financial statement
(i) There are 9 subsidiaries included in the consolidate financial statement, including:
Share holding
Subsidiary Note
ratio%
Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. (“Zhongshan Electric Power”) 80.00
Shenzhen Shennandian Turbine Engineering Technology Co., Ltd (“Engineering
100.00
Company”)
Shenzhen Shen Nan Dian Environment Protection Co., Ltd. (“Environment
100.00
Protection Company”)
Shenzhen Server Petrochemical Supplying Co., Ltd (“Shenzhen Server”) 50.00
Shenzhen New Power Industrial Co., Ltd. (“New Power”) 100.00
Shen Nan Energy (Singapore) Co., Ltd. (“Singapore Company”) 100.00
Hong Kong Syndisome Co., Ltd. (“Syndisome”) 100.00
Zhongshan Shen Nan Dian Storage Co., Ltd (“Shen Storage”) 80.00
56
Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) (“Zhuhai
99.96
Hengqin”)
Scop
e 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
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 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 (24) Revenue 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, changes of owners(shareholders) equity and
cash flows of the Company in reporting period in truthfulness and completeness.
(2) Accounting period
A fiscal year from January 1 to December 31 of the Gregorian calendar.
57
(3)Operating cycle
The Company takes 12 months of a year as the normal operating cycle, and takes the operating
cycle as the standard for the liquidity division of assets and liabilities.
(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
combining party in enterprise combination are measured at the book value of the consolidated
financial statements of the ultimate controlling 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 purchaser'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 directly relevant fees incurred in the merger of enterprises shall be reckon into the current
gains/losses when incurred; the transaction costs of issuing equity securities or debt security for
the purpose of enterprise combination should be reckon into the initial recognition of equity
security or debt security.
(6)Preparation methods for consolidated statement
6.1.Consolidate scope
Scope of the consolidate financial statement is determined on a control basis, including the
Company and all subsidiaries.
58
6.2.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 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
59
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.
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
60
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.
① 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.
61
(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.
(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 venture 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 (13) 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
62
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
9.1.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 expenses capitalization.
9.2. Foreign currency statement translation
Assets and liabilities in the balance sheet are converted at the spot exchange rate on the balance
sheet date; the 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.
10.1.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
63
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, 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.
According to the above conditions, the financial liabilities designated by the Company mainly
include: (Specific description of the designated situation)
10.2 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.
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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.
(5) Financial liability measured at fair value and whose changes are reckoned into current
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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 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 book value and the consideration
paid is included in the current gains/losses.
(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.
10.3. Recognition basis and measurement method for transfer of financial assets
In the event of financial asset transfer, the Company shall assess the degree of risk and reward of
retaining the ownership of the financial asset and deal with the following circumstances
respectively:
(1) Where almost all risks and rewards on the ownership of a financial asset are transferred, the
recognition of the financial asset shall be terminated, and the rights and obligations generated or
retained in the transfer shall be separately recognized as assets or liabilities.
(2) Where almost all risks and rewards on the ownership of a financial asset are retained, the
financial asset shall continue to be recognized.
(3) Where virtually all risks and rewards on the ownership of a financial asset are neither
transferred nor retained (that is, other conditions except for (1) and (2) of this Article), depending
on whether it retains control of the financial asset, deal with the following circumstances
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respectively:
1) Where the control of such financial asset is not retained, the recognition of the financial asset is
terminated, and the rights and obligations generated or reserved in the transfer are identified as an
asset or liability.
2) Where the control of such financial asset is retained, the relevant financial assets shall continue
to be recognized according to the extent of its continued involvement in the transferred financial
assets, and the relevant liabilities shall be recognized accordingly. The extent of continued
involvement in the transferred financial assets refers to the extent of the risk or reward of changes
in the value of the transferred financial asset assumed by the Company.
When judging whether the financial asset transfer meets the termination of recognition of the said
financial asset, adopt the principle of substance over form. The company divides the financial
asset transfer into overall transfer and partial transfer of financial asset.
(1) Where the overall transfer of financial assets meets the conditions for recognizing the
termination, the difference between the following two amounts shall be recorded into the profits
and losses of the current period:
1) The carrying amount of the transferred financial asset on the date of the termination of
recognition.
2) The sum of the consideration received by the transfer of financial assets and the amount
corresponding to the portion of which the recognition is terminated of the accumulated amount of
changes in fair value originally included in other comprehensive income (The financial assets
involved in transfer are measured at fair value and their changes are included in other
comprehensive income).
(2) Where the financial asset is partially transferred and the transferred portion overall meets the
conditions for recognizing the termination, the carrying amount of overall financial asset before
transfer shall be apportioned between the portion to be terminated from recognition and the
portion continued to be recognized (In such circumstances, the retained service assets shall be
regarded as a portion of the financial assets continuing to be recognized) in accordance with their
relative fair value on the transfer date, and the difference between the following two amounts shall
be recorded into the profits and losses of current period.
1) The carrying amount of the portion on the date of the termination of recognition.
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2) The sum of the consideration received from the portion of which the recognition is terminated
and the amount corresponding to the portion of which the recognition is terminated of the
accumulated amount of changes in fair value originally and directly included in other
comprehensive income (The financial assets involved in transfer are measured at fair value and
their changes are included in other comprehensive income).
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.
10.4. Termination recognition of financial liability
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.
10.5. 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
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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.
10.6. Test methods and accounting treatment methods for impairment of financial assets
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 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.
Regarding the note receivable, account receivables and receivables financing, 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.
For lease receivables and long-term receivables formed by the company through sales of goods or
rendering of services, the Company always chooses to measure the loss reserves at an amount
equivalent to expected credit losses during the entire duration.
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For notes receivable, accounts receivable, other receivables, financing of accounts receivable and
long-term receivables with objective evidence showing that there is impairment and is applicable
to individual assessment, perform separate impairment tests, confirm expected credit losses, and
make provisions for impairment; for notes receivable, accounts receivable, other receivables, and
financing of accounts receivable for which there is no objective basis for impairment, or when
there is insufficient evidence to assess expected credit losses at a reasonable cost at the level of
individual instruments, the Company refers to historical credit loss experience, combines with
current conditions and judgments on future economic conditions, and divides the notes receivable,
accounts receivable, other receivables, financing of accounts receivable and long-term receivables
into several portfolios based on the characteristics of credit risk, and calculates the expected credit
loss on the basis of the portfolio. Details as follows:
(1) Note receivables
Name of the combination Method of measuring credit loss
For notes receivable classified as bank acceptance portfolio, the
management appraises that such payments have low credit risks and
Bank acceptance bill of state-owned banks
low expected credit loss rate, and should make no provision for
impairment.
(2) Account receivable
Name of the combination Method of measuring credit loss
Regarding accounts receivable divided into power transactions,
Electricity transaction receivable
engineering operation and maintenance, and environmental
Receivable for engineering operation and protection services, referring to historical credit loss experience,
maintenance and combined with current conditions and forecasts of future
economic conditions, the management evaluates that such payments
have low credit risk and low expected credit loss rate, so no
Environmental protection labor receivables
impairment provision is made; unless there is evidence that the
credit risk of a certain receivable is relatively large.
(3)Other account receivable
Name of the combination Method of measuring credit loss
Combination of the export tax rebate, VAT
rebate upon levy The company classifies the payments, tax refunds receivable, and
collection and withholding payments from subsidiaries within the
Combination of the deposit margin reserve
scope of accounts receivable consolidation that have no significant
Other vary receivable and temporary recovery risks into other portfolios, and no bad debt provision is
payment in addition to the above made.
combination
(4) Receivable financing
Name of the combination Method of measuring credit loss
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Bank acceptance bill of the bank with With reference to historical credit loss experience, combined with
lower credit risk current conditions and forecasts of future economic conditions, the
expected credit loss is calculated through the default risk exposure
Trade acceptance and the expected credit loss rate of the entire duration.
(11) Inventory
11.1. Categories of inventory
Inventory consists of fuels and raw materials etc.
11.2. Valuation method of delivered inventory
The inventories are valued on a weighted average basis at the time of delivery.
11.3.Basis for determining the net realizable value of different types of inventories
For inventory of products that are directly used for sale, such as finished products, inventory
products, and materials for sale, in the normal production and operation process, the amount after
subtracting the estimated selling expenses and relevant taxes from the estimated selling price shall
be used to determine the net realizable value. For inventory of materials that need to be processed,
in the normal production and operation process, the amount after subtracting the estimated cost,
estimated sales expense, and related taxes at the time of completion from the estimated selling
price of the finished product shall be used to determine the net realizable value. The net realizable
value of the inventory held for the execution of the sales contract or labor service contract is
calculated on the basis of the contract price. If the quantity of the inventory held is more than the
quantity ordered by the sales contract, the net realizable value of the excess inventory is calculated
based on the general sales price.
At the end of the period, provision for inventory depreciation is made based on a single inventory
item; but for inventory with a large quantity and low unit price, provision for inventory
depreciation is made based on the inventory category. For inventories that are related to the
product series produced and sold in the same region, have the same or similar end-use or purpose,
and are difficult to measure separately from other items, the inventory depreciation reserve shall
be accrued in a consolidated manner.
11.4. Inventory system
Perpetual inventory system required
11.5. Amortization method of low-value consumables and packaging
(1) Low-value consumables-one pass method
(2) Packaging- one pass method
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(12) Contractual 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 contractual assets. The
Company's unconditional (that is, only depending on the time lapses) right to collect consideration
from customers are separately listed as receivables.
The Company's determination method and accounting treatment method for the expected credit
loss of contract assets are detailed in Note III/(10) 6. Impairment of financial instruments.
(13) Long-term equity investment
13.1 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.
13.2 Determination of initial investment cost
(1) Long-term equity investment resulting from enterprise combination
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
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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.
13.3 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,
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the current investment return is recognized by the announced cash dividend or profit by the
invested units.
(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 accrual 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
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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 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
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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.
(14) Investment real estate
Investment real estate is defined as the real estate with the purpose to earn rent or capital
appreciation or both, including the rented land use rights and the land use rights which are held
and prepared for transfer after appreciation, the rented buildings. (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.
(15) Fixed assets
15.1 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.
15.2 Depreciation method
The depreciation of fixed assets is calculated and accrued by the straight-line depreciation
method, and the depreciation rate is determined according to the fixed asset category, estimated
useful life and estimated net residual value rate. If the service life of each component of the fixed
asset is different or the economic benefits are provided to the enterprise in different ways, different
depreciation rates or depreciation methods shall be selected and depreciation shall be calculated
separately.
Depreciation method, depreciation period, residuals rate and annual depreciation rate for all kinds
of fixed assets are as follows:
Depreciation period Residuals Annual depreciation
Category Depreciation method
(Year) rate(%) rate (%)
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Depreciation period Residuals Annual depreciation
Category Depreciation method
(Year) rate(%) rate (%)
Houses and
Straight-line 20 years 10 4.5
buildings
Equipment-fuel
The work quantity
machinery 10
method
sets(Note)
Equipment (fuel
machinery sets Straight-line 15-20 years 10 4.5-6
excluded)
Transportation tools Straight-line 5 years 10 18
Other Straight-line 5 years 10 18
Note: gas turbine generator set is provided with depreciation under workload method, namely to determine the
depreciation amount per hour of gas turbine generator set based on equipment value, predicted net remaining value
and predicted generation hours. Details are set out as follows:
Name of the Company Fixed assets Depreciation amount (RMB/Hour)
Generating unit 1# 538.33
The Company
Generating unit 3# 601.20
New Power Generating unit 10# 520.61
Generating unit 1# 989.98
Zhongshan Electric Power
Generating unit 3# 862.43
(16) Construction in process
Construction in progress take the necessary expenditures incurred before the construction of the
asset reaching the expected usable state as the entry value of the fixed assets. If the constructed
fixed assets have reached the expected usable state of the project, but the final accounts for
completion have not yet been processed, from the date of reaching the expected usable state, the
constructed fixed assets will be transferred to the fixed assets at the estimated value based on the
project budget, cost, or actual project cost, and accrue the depreciation of fixed assets according to
the Company's fixed asset depreciation policy, and adjust the original temporary estimated value
according to the actual cost after completing the final accounts, but not adjust the original accrued
depreciation amount.
(17) Borrowing expenses
17.1 Recognition principle of the capitalization of 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
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differences arising from foreign currency borrowings.
If the borrowing expenses incurred by the company can be directly attributable to the acquisition,
construction or production of assets that meet the capitalization conditions, they shall be
capitalized and included in the cost of the relevant assets; other borrowing expenses shall be
recognized as expenses based on the amount incurred when incurred and included in current profit
and loss.
Assets qualified for capitalization, refers to the fixed assets, investment real estate, inventory and
other assets that require a considerable period of time for purchase, construction or production
activities to reach the intended use or sale status.
The capitalization of borrowing expenses starts when the following conditions are met at the same
time:
(1) Asset expenditures have occurred, including expenditures in the form of paying cash,
transferring non-cash assets, or assuming interest-bearing debts for the acquisition, construction or
production of assets that meet the conditions for capitalization;
(2) borrowing expenses have incurred;
(3) The acquisition, construction or production activities necessary for the assets to reach the
intended usable or saleable state have begun.
17.2 Period of capitalization of borrowing expenses
The period of capitalization refers to the period from the point when the capitalization of the
borrowing expenses starts to the point when the capitalization is stopped. The period during which
the capitalization of the borrowing expenses is suspended is not included.
When the acquisition, construction or production of assets that meet the capitalization conditions
reaches the intended usable or saleable state, the capitalization of borrowing expenses shall cease.
When part of projects in the acquisition, construction or production of assets that meet the
capitalization conditions are completed separately and can be used independently, the
capitalization of the borrowing expenses of the part of the assets shall be stopped.
If each part of the assets purchased, constructed or produced is completed separately, but cannot
be used or sold until the entirety is completed, the capitalization of borrowing expenses shall be
stopped when the entire asset is completed.
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17.3The period of suspension of capitalization
If an abnormal interruption occurs during the acquisition, construction or production of an asset
that meets the capitalization conditions, and the interruption lasts for more than 3 months, the
capitalization of borrowing expenses shall be suspended; if the interruption is the necessary
procedure for the acquisition, construction or production of assets that meet the capitalization
conditions to reach the intended usable state or saleable state, the borrowing expenses shall
continue to be capitalized. The borrowing expenses incurred during the interruption period shall be
recognized as the current profit and loss, and the borrowing expenses shall continue to be
capitalized until the acquisition, construction or production of the asset restarts.
17.4 Calculation method of capitalization rate and capitalization amount of borrowing
expenses
For special loans borrowed for the acquisition, construction or production of assets that meet the
capitalization conditions, the amount after subtracting the interest income obtained by depositing
the unused borrowing funds in the bank or the investment income obtained from temporary
investment from the actual borrowing expenses incurred in the current period of the special loans
is used to determine the capitalized amount of borrowing expenses.
For general borrowings used for the acquisition, construction or production of assets that meet the
capitalization conditions, the amount of borrowing expenses that should be capitalized for general
borrowings is calculated and determined based on the weighted average of the asset expenditures
of the accumulated asset expenditure exceeding the part of the special borrowings multiplied by
the capitalization rate of the general borrowings used. The capitalization rate is calculated and
determined based on the weighted average interest rate of general borrowings.
(18) Intangible assets
18.1 Valuation methods of intangible assets
(1) When the company obtains intangible assets, they shall be initially measured at cost;
The cost of outsourcing intangible assets includes the purchase price, relevant taxes, and other
expenditures incurred to make the assets reach the intended purpose. If the purchase price of
intangible assets have a delay in payment beyond normal credit conditions and is of financing
nature, the cost of intangible assets is determined on the basis of the current value of the purchase
price.
For intangible assets used by the debtor to repay the debt through debt restructuring, the entry
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value is determined by the fair value of the waived creditor’s rights and other costs that can be
directly attributable to the tax incurred to make the asset reach its intended use, and the difference
between the fair value and the book value of the waived creditor's rights is included in the current
profit and loss.
On the premise that the non-monetary asset exchange has commercial substance and the fair value
of the swap-in assets and the swap-out assets can be reliably measured, the entry value of the
swap-in intangible assets through non-monetary assets exchange is determined on the basis of the
fair value of the swap-out assets, unless there is conclusive evidence that the fair value of the
swap-in assets is more reliable; for non-monetary asset exchanges that do not meet the above
premises, the book value of the swap-out assets and the relevant taxes and fees payable shall be
used as the cost of the swap-in intangible assets, but not recognize the profit and loss.
(2) Follow-up measurement
Analyze and judge the service life of intangible assets when acquiring them.
Intangible assets with a limited service life are amortized on a straight-line basis within the period
of economic benefits brought to the enterprise; or the intangible assets shall be regarded as with an
uncertain service life if the period of economic benefits brought by intangible assets cannot be
foreseen, and shall not be amortized.
18.2 Estimated service life of intangible assets with limited service life
An intangible asset with a limited useful life shall be amortized evenly over the expected useful
life using the straight-line method for the original value minus the estimated net residual value and
the accumulated amount of provision for impairment from the time it is available for use.
Intangible assets with uncertain service life shall not be amortized.
At the end of the period, review the useful life and amortization method of intangible assets with a
limited useful life. If there is any change, it will be treated as a change in accounting estimates.
18.3 Judgment basis for intangible assets with uncertain service life and procedures for
reviewing their service life
To review the service life of an intangible asset with a uncertain service life, if there is evidence
that the period of economic benefits brought by the intangible asset is predictable, estimate its
service life and amortize according to the amortization policy for intangible assets with limited
service life.
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18.4 Specific criteria for dividing the research phase and the development phase
The company's internal research and development project expenditures are divided into research
phase expenditures and development phase expenditures.
Research phase: it’s the phase of planned investigations and research activities with originality to
acquire and understand new scientific or technical knowledge, etc.
Development phase: it’s the phase to apply the research results or other knowledge to a certain
plan or design so as to produce new or substantially improved materials, devices, products and
other activities before commercial production or use.
Specific criteria for expenditure in the development phase to conform to capitalization
Expenditures in the development stage of internal research and development projects are
recognized as intangible assets when the following conditions are met simultaneously:
1. It is technically feasible to complete the intangible asset so that it can be used or sold;
2. There is an intention to complete the intangible asset and use or sell it;
3. The way that intangible assets generate economic benefits, including the ability to prove that the
products produced by the intangible assets are marketable or the intangible assets themselves are
marketable, and the intangible assets will be used internally, which can prove their usefulness;
4. There are sufficient technical, financial and other resource supports to complete the
development of the intangible asset, and have the ability to use or sell the intangible asset;
5. The expenditure attributable to the development stage of the intangible asset can be reliably
measured.
(19) Impairment of long-term assets
Long-term equity investments, investment real estate measured by the cost model, fixed assets,
construction in progress, intangible assets with limited service life and other long-term assets that
show signs of impairment on the balance sheet date shall be tested for 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.
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.
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As for the goodwill, intangible assets with an indefinite useful life and intangible assets beyond
working conditions, the impairment tests shall be carried out at least at the end of each year.
The Company conducts a goodwill impairment test. The book value of the goodwill formed by the
business combination shall be allocated to the relevant asset group according to a reasonable
method from the date of purchase; if it is difficult to allocate to the relevant asset group, it shall be
allocated to the relevant portfolio of asset groups. The Company allocates the book value of
goodwill based on the relative benefits that the relevant asset group or portfolio of asset groups
can obtain from the synergies of the business combination, and conducts a goodwill impairment
test on this basis.
When conducting an impairment test on a related asset group or portfolio of asset groups that
contains goodwill, if there are signs of impairment for an asset group or portfolio of asset groups
related to goodwill, the asset group or portfolio of asset groups that does not contain goodwill
should be tested first, calculate the recoverable amount, and compare it with the relevant book
value to confirm the corresponding impairment loss. Then conduct an impairment test on the asset
group or portfolio of asset groups that contains goodwill, and compare the book value of these
related asset groups or asset group portfolios (including the book value of the allocated goodwill)
with the recoverable amount, if the recoverable amount of the relevant asset group or the asset
group portfolio is lower than its book value, the impairment loss of goodwill shall be recognized.
Once the above assets impairment loss is recognized, it will not be carried back in future
accounting periods.
(20) Long-term deferred expenses
The Company's long-term deferred expenses refer to the expenses that have been paid, but the
benefit period is more than one year (excluding one year). Long-term deferred expenses are
amortized in installments according to the benefit period of the expense items. If the long-term
deferred expense item cannot benefit the future accounting period, all the amortized value of the
item that has not been amortized shall be transferred to the current profit and loss.
(21) Contractual liabilities
Contractual liabilities refer to the Company's obligation to transfer goods or services to customers
for consideration received or receivable from customers. Contractual assets and contractual
liabilities under the same contract are presented in net amount.
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(22) Staff remuneration
22.1 Accounting treatment of a short-term compensation
During the accounting period when employees provide services to the Company, the Company
recognizes the actual short-term compensation as a liability and includes it in the current profit and
loss or the cost of related assets.
The social insurance premiums and housing provident fund paid by the Company for employees,
as well as the labor union funds and employee education funds drawn in accordance with the
regulations, of which the corresponding employee compensation amount shall be calculated and
determined according to the specified accrual basis and accrual ratio during the accounting period
when the employees provide services to the Company.
If employee welfare expenses are non-monetary and can be measured reliably, they shall be
measured at fair value.
22.2 Accounting treatment methods for post-employment benefits
(1) Defined contribution plans
The Company pays basic endowment insurance and unemployment insurance for employees in
accordance with the relevant regulations of the local government. During the accounting period
when employees provide services to the Company, the amount payable is calculated based on the
local payment base and proportion, recognized as a liability, and included in current profit and loss
or related asset cost.
In addition to basic endowment insurance, the Company has also established an enterprise annuity
payment system (supplementary endowment insurance)/enterprise annuity plan in accordance with
the relevant policies of the national enterprise annuity system. The Company pays a certain
percentage of the total wages of employees to the local social insurance agency/annuity plan, and
the corresponding expenditure is included in the current profit and loss or the cost of related
assets.
(2) Defined benefit plans
The Company assigns the welfare obligations arising from the defined benefit plans to the period
during which the employees provide services according to the formula determined by the expected
cumulative welfare unit method, and includes them in the current profit and loss or the cost of
related assets.
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The deficit or surplus formed by the present value of the defined benefit plan’s obligations minus
the fair value of the defined benefit plan’s assets is recognized as a defined benefit plan’s net
liabilities or net assets. If there is a surplus in the defined benefit plan, the Company shall use the
lower of the surplus of the defined benefit plan and the asset ceiling to measure the net assets of
the defined benefit plan.
All defined benefit plans obligations, including obligations expected to be paid within twelve
months after the end of the annual reporting period in which employees provide services, are
discounted based on the market yield of the national debt matching with the obligation period and
currency of the defined benefit plan or the high-quality corporate bonds in an active market on the
balance sheet date.
The service cost incurred by the defined benefit plan and the net interest of the net liabilities or net
assets of the defined benefit plan are included in the current profit and loss or the related asset cost;
the changes in net liabilities or net assets resulting from the remeasurement of defined benefit
plans are included in other comprehensive income, and shall not be transferred back to profit or
loss in the subsequent accounting period, and the part that was originally included in other
comprehensive income will be carried forward to undistributed profit within the scope of equity
when the original defined benefit plan is terminated.
In the settlement of the defined benefit plan, the difference between the present value of the
obligation of the defined benefit plan and the settlement price determined on the settlement date is
used to confirm the settlement gain or loss.
22.3 Accounting treatment methods for dismissal benefits
When the Company cannot unilaterally withdraw the dismissal benefits provided by the
termination of the labor relationship plan or redundancy proposal, or when confirming the costs or
expenses related to the reorganization involving the payment of the dismissal benefits (the earlier
of the two), recognize employee compensation liabilities arising from dismissal benefits and
include in the current profit and loss.
(23) Accrual liability
23.1 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;
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(2) the liability has the probability of result in financial benefit outflow; and
(3) the responsibility can be measured reliably for its value.
23.2 Measurement on vary accrual liability
The Company's accrual liabilities are initially measured based on the best estimate of the
expenditure required to perform the relevant current obligations.
When determining the best estimate, the Company comprehensively considers factors such as
risks, uncertainties and time value of money related to contingencies. If the time value of money
has a significant impact, the best estimate is determined after discounting the relevant future cash
outflows.
The best estimates are handled separately in the following situations:
If there is a continuous range (or interval) for the required expenditure, and the probability of
occurrence of various results within this range is the same, the best estimate is determined
according to the middle value of the range, that is, the average number of the upper and lower
limits.
There is no continuous range (or interval) for the required expenditure, or although there is a
continuous range, the possibility of occurrence of various results within the range is not the same,
if the contingency involves a single item, the best estimate shall be determined based on the
amount most likely to occur; if the contingency involves multiple items, the best estimate shall be
calculated and determined according to various possible outcomes and related probabilities.
If all or part of the expenditures required by the Company to settle the accrual liabilities are
expected to be compensated by a third party, the compensation amount shall be separately
recognized as an asset when it is basically certain that it can be received, and the confirmed
compensation amount shall not exceed the book value of the accrual liability.
(24) Revenue
General principles
The Company recognizes the income when it has fulfilled its performance obligations in the
contract, that is, when the customer has obtained control of the relevant goods or services. The
performance obligation refers to the commitment in the contract that the Group transfers clearly
distinguishable goods or services to the customer. Obtaining control over related goods or services
means being able to lead the use of the goods or the provision of the service and obtain almost all
of the economic benefits.
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For a performance obligation that meets one of the following conditions and is performed within a
certain period of time, the Company recognizes revenue within a period of time according to the
performance of the contract: (1) The customer obtains and consumes the economic benefits
brought by the Company's performance at the same time as the Company fulfills the contract; (2)
The customer can control the products under construction during the performance of the Company;
(3) The products produced during the performance of the Company have irreplaceable uses, and
the Company has the right to collect payment for the accumulated performance part that has been
completed so far during the entire contract period. Otherwise, the Company recognizes revenue at
the point when the customer obtains control of the relevant goods or services.
Variable consideration
Some of the Company’s contracts with customers include sales rebates, quantity discounts,
commercial discounts, performance bonuses and claims, which forms variable consideration. The
Company determines the best estimate of the variable consideration based on the expected value
or the most likely amount, but the transaction price that includes the variable consideration does
not exceed the amount that the accumulated recognized revenue is most unlikely to be materially
reversed when the relevant uncertainty is eliminated.
Significant financing component
If there is a significant financing component in the contract, the Company shall determine the
transaction price based on the amount payable in cash when the customer assumes control of the
goods or services. The difference between the transaction price and the contract consideration
shall be amortized by the effective interest method during the contract period.
On the starting date of the contract, if the company expects the customer to obtain control of the
product and the customer pays the payment within one year, the significant financing component
in the contract will not be considered.
Non-cash consideration
If the customer pays a non-cash consideration, the Company shall determine the transaction price
based on the fair value of the non-cash consideration. If the fair value of the non-cash
consideration cannot be reasonably estimated, the Company indirectly determines the transaction
price by referring to the stand-alone selling price of the goods promised to be transferred to the
customer. If the fair value of non-cash consideration changes due to reasons other than the form of
consideration, it shall be used as variable consideration for accounting treatment in accordance
with relevant regulations.
Consideration payable to customers
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For the consideration payable to customers, the Company offsets the transaction price from the
consideration payable to the customer, and offsets the current revenue at the time point of the later
when the relevant revenue is recognized and the promised payment of the customer consideration,
unless the consideration payable is to obtain other clearly distinguished products from the
customer.
Sales with sales return clauses
For sales with a sales return clause, when the customer obtains control of the relevant product, our
company recognizes the revenue in accordance with the amount of consideration expected to be
entitled to be collected due to transfer of goods to customers (that is, does not include the amount
expected to be refunded due to sales returns), and recognizes liabilities in accordance with the
amount expected to be refunded due to sales returns. At the same time, according to the expected
book value of the returned goods at the time of transfer, the balance after deducting the estimated
cost of recovering the goods (including the value impairment of the returned goods) is recognized
as an asset, and the net carry-over cost of the above asset cost is deducted according to the book
value of the transferred commodity at the time of transfer. On each balance sheet date, re-estimate
the future sales return situation, and if there is any change, it will be treated as a change in
accounting estimates.
Sales with quality assurance clauses
For sales with quality assurance clauses, if the quality assurance provides a separate service in
addition to ensuring that the goods or services sold to the customer meet the established standards,
the quality assurance constitutes a single performance obligation. Otherwise, the Company will
make an accounting treatment for quality assurance responsibilities in accordance with the
"Accounting Standards for Business Enterprises No. 13 - Contingencies".
Principal and agent
The Company judges whether the Company’s identity is the principal responsible person or an
agent at the time of the transaction based on whether it has control over the product or service
before the transfer of the product or service to the customer. If the Company is able to control the
products or services before transferring the products or services to the customers, the Company is
the principal responsible person, and the income is recognized based on the total consideration
received or receivable; otherwise, the Company is the agent, and the income is recognized
according to the amount of commission or handling fee expected to have the right to collect, the
amount is determined according to the net amount of the total consideration received or receivable
after deducting the price payable to other related parties, or according to the established
commission amount or ratio.
Sales with additional purchase options for customers
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For sales with additional purchase options for customers, the Company assesses whether the
option provides customers with a major right. If an enterprise provides a major right, it shall be a
single performance obligation, and the transaction price shall be allocated to the performance
obligation in accordance with the relevant provisions of the standards. When the customer
exercises the purchase option in the future to obtain control of the relevant commodity, or when
the option lapses, the corresponding income shall be recognized. If the stand-alone selling price of
the customer's additional purchase option cannot be directly observed, the Company shall
reasonably estimate after considering all relevant information such as the difference between the
discounts that the customer can obtain from exercising and not exercising the option, the
possibility of the customer exercising the option, etc.. Although the customer has additionally
purchased the commodity option, the price at the time when the customer exercises the option to
purchase the commodity reflects the stand-alone selling price of these commodities, and it should
not be considered that the company has provided the customer with a major right.
Grant intellectual property licenses to customers
If an intellectual property license is granted to a customer, the Company assesses whether the
intellectual property license constitutes a single performance obligation in accordance with the
relevant provisions of the standards, and if it constitutes a single performance obligation, it shall
further determine whether it will be performed within a certain period of time or at a certain point
in time.
When the following conditions are met at the same time, the relevant revenue is recognized as a
performance obligation performed within a certain period of time; otherwise, the relevant revenue
is recognized as a performance obligation performed at a certain point in time:
(1) Contract requirements or customers can reasonably expect that the enterprise will engage in
activities that have a significant impact on the intellectual property rights;
(2) The activity will have a favorable or unfavorable impact on customers;
(3) The activity will not result in the transfer of a certain commodity to the customer.
After-sales repurchase transaction
For after-sales repurchase transactions, the Company distinguishes the following two situations for
accounting treatment:
(1)If there is a repurchase obligation due to the existence of a long-term arrangement with the
customer or the Company enjoys the repurchase right, the Company shall conduct the
corresponding accounting treatment as a lease transaction or financing transaction. Among them,
if the repurchase price is lower than the original selling price, it shall be regarded as a lease
transaction, and shall be accounted for in accordance with the relevant provisions of the standards;
if the repurchase price is not lower than the original selling price, it shall be regarded as a
financing transaction, and the financial liabilities shall be confirmed when receiving the client's
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payment, and the difference between the payment and the repurchase price is recognized as
interest expenses during the repurchase period. If the Company fails to exercise the repurchase
right upon maturity, when the repurchase right expires, the financial liabilities is derecognized,
and the revenue is recognized at the same time.
(2)If the Company is obliged to repurchase commodities at the request of the customer, it shall
assess whether the customer has a major economic motivation to exercise the right of claim on the
commencement date of contract. If the customer has a major economic motivation to exercise the
right of claim, the enterprise shall treat the after-sale repurchase as a lease transaction or financing
transaction, and conduct accounting treatment in accordance with the provisions of present article
(1); otherwise, the Company will treat it as a sales transaction with a sales return clause, and
perform accounting treatments in accordance with relevant regulations of the standards.
Customer's unexercised rights
If the Company receives advance payments from customers for sales of goods, it shall first
recognize the payments as liabilities, and then convert them into revenue when the relevant
performance obligations are fulfilled. When the advance payment does not need to be refunded
and the customer may waive all or part of its contract rights, the Company expects to be entitled to
obtain the amount related to the contract rights waived by the customer, and the above-mentioned
amount shall be recognized as revenue in proportion to the mode in which the customer exercises
the contractual rights. Otherwise, the Company can only convert the relevant balance of the above
liabilities into income when the possibility of the customer requesting it to perform the remaining
performance obligations is extremely low.
Initial fee no need to be refunded
The initial fee collected by the Company from the customer on the commencement date of the
contract (or close to the commencement date) shall be included in the transaction price, and it shall
be assessed whether the initial fee is related to the transfer of the promised goods to the customer.
If the initial fee is related to the transfer of the promised goods to the customer, and the goods
constitutes a single performance obligation, the Company recognizes the income at the transaction
price allocated to the goods when transferring the goods. If the initial fee is related to the goods
promised to transfer to the customer, but the goods does not constitute a single performance
obligation, the Company will recognize the income at the transaction price allocated to the single
performance obligation when the single performance obligation containing the product is fulfilled.
If the initial fee is not related to the goods promised to transfer to the customer, it shall be used as
an advance payment for the goods to be transferred in the future, and shall be recognized as
income when the goods is transferred in the future.
If the Company has collected an initial fee that does not need to be refunded and should carry out
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initial activities to perform the contract, but these activities do not transfer the promised goods to
the customer, the initial fee is related to the goods promised to be transferred in the future, and
should be recognized as revenue when transferring the goods in the future, and the Company does
not consider these initial activities when determining the progress of the contract. The Company’s
expenditures for the initial activities should be recognized as an asset or included in the current
profit and loss in accordance with the relevant provisions of the standards.
Specific principles
The Company recognizes the revenue when it fulfills its performance obligations in the contract,
that is, when the customer obtains control of the relevant goods or services. Obtaining control over
related goods or services means being able to lead the use of the goods or the provision of the
service and obtain almost all of the economic benefits from it.
(1) Commodity sales revenue
The sales contract between the Company and the customers usually only contains the performance
obligation for the transferred goods. The Company usually recognizes revenue at a certain point in
time on the basis of comprehensive consideration of the following factors: obtaining the current
right to receive payment of the goods, the transfer of major risks and rewards in the ownership of
the goods, the transfer of the legal ownership of the goods, and the transfer of the physical asset of
the goods, the customer accepts the goods.
Electricity sales revenue
The Company produces electricity through firepower and realizes sales through integration into
Guangdong Power Grid. For electricity sales, the Company recognizes the realization of revenue
when it has produced electricity and obtains the grid electricity statistical table confirmed by the
Electric Power Bureau.
(2) Income from rendering of labor services
The service contracts between the Company and the customers usually include performance
obligations such as operation and maintenance services, labor services, etc.
The Company evaluates the contract on the start date of the contract, identifies each individual
performance obligation contained in the contract, and determines whether each individual
performance obligation is performed within a certain period of time or at a certain point in time. If
one of the following conditions is met, it is a performance obligation performed within a certain
period of time, the Company recognizes revenue within a period of time according to the progress
of the contract:
(1) The customer obtains and consumes the economic benefits brought by the Company's
performance at the same time as the Company's performance;
(2) Customers can control the products under construction during the performance of the
Company;
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(3) The goods produced by the Company during the performance of the contract have
irreplaceable uses, and the Company has the right to collect payment for the cumulative
performance part that has been completed so far during the entire contract period. Otherwise, the
Company recognizes revenue at the time point when the customer obtains control of the relevant
goods or services.
○1 Recognition standards of income from labor services provided by Environment Protection
Company:
The company recognizes revenue based on the obtained sludge treatment settlement statement
jointly confirmed with the transportation company, the water purification unit, and the company.
○2 Specific standards for revenue recognition of Engineering Company:
Debugging projects: when the debugging is successful, obtain the confirmation of successful
debugging, and recognize the income according to the contract;
Operation and maintenance, management projects: monthly revenue is temporarily estimated and
recognized based on attendance time and labor prices of attendants, and the temporary estimated
revenue will be adjusted after obtaining the monthly statement confirmed by the supplier's stamp
and signature, the progress confirmation letter, and the attendance sheet.
(25)Contractual costs
The cost of obtaining the contract
If the incremental cost (that is, the cost that would not be incurred without obtaining the contract)
incurred by the Company to obtain the contract is expected to be recovered, it shall be recognized
as an asset, and use the same basis for the recognition of the income of goods or services related to
the asset for sales, and be included in the current profit and loss. If the asset amortization period
does not exceed one year, it shall be included in the current profit and loss when it occurs. Other
expenses incurred by the Group in order to obtain the contract shall be included in the current
profit and loss when incurred, except for those clearly borne by the customer.
The cost of fulfilling the contract
The cost incurred by the Company for the performance of the contract that does not fall within the
scope of other accounting standards for business enterprises except the income standard and meets
the following conditions at the same time is recognized as an asset: (1) The cost is directly related
to a current or expected contract; (2) The cost increases the resources of the Group for fulfilling
the performance obligations in the future; (3) The cost is expected to be recovered. The
above-mentioned assets are amortized on the same basis as the recognition of the income of goods
or services related to the asset and included in the current profit and loss.
Contract cost impairment
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When the Company determines the impairment loss of assets related to the contract cost, it first
determines the impairment loss of other assets related to the contract that are confirmed in
accordance with other relevant enterprise accounting standards; then, based on the difference
between the book value of which is higher than the remaining consideration that the Company is
expected to obtain due to the transfer of the asset-related commodities and the estimated cost of
transferring the related commodities, the excess shall be provided for impairment and recognized
as an asset impairment loss.
If the impairment factors of the previous period have changed, causing the aforementioned
difference is higher than the book value of the asset, the original provision for asset impairment
shall be reversed and included in the current profit and loss, but the book value of the asset after
the reversal shall not exceed the book value of the asset on the date of reversal under the
assumption that no impairment provision is made.
(25) Contractual costs
The cost of obtaining the contract
If the incremental cost (that is, the cost that would not be incurred without obtaining the contract)
incurred by the Company to obtain the contract is expected to be recovered, it shall be recognized
as an asset, and use the same basis for the recognition of the income of goods or services related to
the asset for sales, and be included in the current profit and loss. If the asset amortization period
does not exceed one year, it shall be included in the current profit and loss when it occurs. Other
expenses incurred by the Group in order to obtain the contract shall be included in the current
profit and loss when incurred, except for those clearly borne by the customer.
The cost of fulfilling the contract
The cost incurred by the Company for the performance of the contract that does not fall within the
scope of other accounting standards for business enterprises except the income standard and meets
the following conditions at the same time is recognized as an asset: (1) The cost is directly related
to a current or expected contract; (2) The cost increases the resources of the Group for fulfilling
the performance obligations in the future; (3) The cost is expected to be recovered. The
above-mentioned assets are amortized on the same basis as the recognition of the income of goods
or services related to the asset and included in the current profit and loss.
Contract cost impairment
When the Company determines the impairment loss of assets related to the contract cost, it first
determines the impairment loss of other assets related to the contract that are confirmed in
accordance with other relevant enterprise accounting standards; then, based on the difference
between the book value of which is higher than the remaining consideration that the Company is
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expected to obtain due to the transfer of the asset-related commodities and the estimated cost of
transferring the related commodities, the excess shall be provided for impairment and recognized
as an asset impairment loss.
If the impairment factors of the previous period have changed, causing the aforementioned
difference is higher than the book value of the asset, the original provision for asset impairment
shall be reversed and included in the current profit and loss, but the book value of the asset after
the reversal shall not exceed the book value of the asset on the date of reversal under the
assumption that no impairment provision is made.
(26) Government subsidy
26.1 Type
Government subsidy refers to the monetary asset and non-monetary asset that the Company
obtains from the government free of charge which are divided into the asset-related government
subsidy and the income-related government subsidy.
Government subsidies related to assets refer to government subsidies obtained by the Company for
purchase and construction or to form long-term assets in other ways. Government subsidies related
to income refer to government subsidies other than government subsidies related to assets.
26.2 Time point of recognition
If there is evidence at the end of the period that the company can meet the relevant conditions
stipulated in the financial support policy and is expected to receive financial support funds, the
government subsidy shall be recognized according to the amount receivable. In addition,
government subsidies are confirmed when they are actually received.
If a government subsidy is a monetary asset, it shall be measured at the amount received or
receivable. If a government subsidy is a non-monetary asset, it shall be measured at its fair value;
if its fair value cannot be obtained reliably, it shall be measured at its nominal amount (1 Yuan).
Government subsidies measured at their nominal amounts are directly included in the current
profits and losses.
26.3 Accounting treatment
Government subsidies related to assets are used to offset the book value of related assets or be
recognized as deferred income, those recognized as deferred income shall be included in the
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current profit and loss (those related to the Company’s daily activities shall be included in other
income; those not related to the Company’s daily activities shall be included in the non-operating
income) in a reasonable and systematic way within the useful life of the relevant assets;
Government subsidies related to income that are used to compensate the Company’s related costs
or losses in subsequent periods shall be recognized as deferred income, and shall be included in
the current profits and losses (those related to the Company’s daily activities shall be included in
other income; those not related to the Company’s daily activities shall be included in the
non-operating income) or used to offset related costs or losses during the period when the relevant
costs or losses are recognized; those used to compensate the Company’s related costs or losses are
directly included in the current profits and losses (those related to the Company’s daily activities
shall be included in other income; those not related to the Company’s daily activities shall be
included in the non-operating income) or used to offset related costs or losses.
The policy-related preferential loan interest discount obtained by the Company is divided into the
following two situations and is accounted for separately:
(1) The finance allocates interest subsidy to the lending bank, if the lending bank provides loans to
the Company at a preferential policy interest rate, the Company uses the amount of borrowing
actually received as the entry value of the loan, and calculates the related borrowing costs
according to the loan principal and the policy preferential interest rates.
(2) If the finance directly allocates interest subsidy funds to the Company, the Company will offset
the corresponding interest discount against the relevant borrowing costs.
(27) Deferred income tax asset/ deferred income tax liability
For deductible temporary differences to recognize deferred income tax assets, they shall be within
the limit of the taxable income that is likely to be obtained in the future to deduct deductible
temporary differences. For the deductible losses and tax deductions that can be carried forward for
subsequent years, they shall be within the limit of the future taxable income that is likely to be
used to deduct the deductible losses and tax deductions to recognize the corresponding deferred
income tax assets.
For taxable temporary differences, except for special circumstances, deferred income tax liabilities
are recognized.
Special circumstances that do not recognize deferred income tax assets or deferred income tax
liabilities include initial recognition of goodwill; Other transactions or matters that do not affect
accounting profits or taxable income (or deductible losses) when they occur except for a business
94
combination.
When having the statutory right to settle on a net basis, and intending to settle on a net basis or
obtain assets and pay off liabilities at the same time, the current income tax assets and current
income tax liabilities are presented as the net amount after offsetting.
When having the statutory right to settle current income tax assets and current income tax
liabilities on a net basis, and the deferred income tax assets and deferred income tax liabilities are
related to the income tax levied by the same tax administration department on the same taxpayer
or related to different taxpayers, however, in the future period during which important deferred
income tax assets and liabilities are reversed, when the taxpayer involved intends to settle the
current income tax assets and liabilities on a net basis or obtain assets and repay liabilities at the
same time, the deferred income tax assets and deferred income tax liabilities are presented as the
net amount after offsetting.
(28) Leasing
A leasing is a contract in which the lessor cedes the right to use an asset to the lessee for a certain
period of time in return for consideration.
28.1 The Company acts as the lessee
The Company recognizes the right-of-use assets on the commencement date of the lease term and
recognizes the lease liabilities at the present value of the outstanding lease payments. The lease
payments include fixed payments, as well as payments where there is reasonable certainty that a
purchase option will be exercised or a lease option will be terminated. The variable rent
determined based on a certain percentage of sales is not included in the lease payment, and is
included in the current profit and loss when it actually occurs.
The Company’s right-of-use assets include leased houses and buildings, machinery and equipment,
means of transport, computers and electronic equipment, etc.
For short-term leases with a lease term of less than 12 months and low-value asset leases with a
low value when a single asset is brand-new, the Company chooses not to recognize the
right-of-use assets and lease liabilities, and includes the relevant rental expenses into current
profits and losses or the relevant assets cost in each period of the lease term according to the
straight-line method.
28.2 The Company acts as the lessor
95
A lease that transfers substantially all the risks and rewards associated with the ownership of the
leased asset is a finance lease. Other leases are operating leases.
(1) Operating lease
When the Company operates leased buildings, machinery and equipment, and means of transport,
the rental income from operating leases shall be recognized in accordance with the straight-line
method during the lease term. The Company will include variable rent determined based on a
percentage of sales in rental income when it actually incurs.
(2) Finance lease
On the beginning date of the lease term, the Company recognizes the finance lease receivables for
finance leases and derecognizes related assets. The Company presents the finance lease
receivables as long-term receivables, and the finance lease receivables received within one year
(including one year) from the balance sheet date are presented as non-current assets due within
one year.
(29) Changes of major accounting policy and accounting estimation
29.1 Change of major accounting policies
No changes of major accounting policy during the reporting period
29.2 Change of major accounting estimation
No change of major accounting estimation during the reporting period
IV. Taxes
(1) Main taxation and rates
Taxation items Taxation basis Tax rate
Calculate the output tax based on the sales of goods and taxable
service income calculated according to the tax law, after deducting 13%, 9%, 6%,
VAT
the input tax allowable for deduction in the current period, the 5%, 3%
difference is the VAT payable.
City maintenance tax According to the actual payment of VAT and consumption tax 7%
Education surtax According to the actual payment of VAT and consumption tax 3%
Local education surtax According to the actual payment of VAT and consumption tax 2%
25%, 17%,
Enterprise income tax According to the taxable income amount
16.5%, 15%
2 Yuan ~ 8Yuan per square meter of the actual occupied are for the
industrial land located in Nanshan District, Shenzhen City; 1Yuan
Land-use tax of town
per square meter of the actual occupied are for the industrial land
located in Zhongshan City
(2) Explanation of the income tax rate of the taxpayer of enterprise income tax
96
Taxpaying body Rate of income tax
The Company 15%
New Power 25%
Engineering Company 15%
Shenzhen Server 25%
Environment Protection Company 15%
Zhongshan Electric Power 25%
Singapore Company 17%
Shen Storage 25%
Syndisome (HK) 16.5%
(3) Preferential tax policies and basis
1. Preferential corporate income tax policy:
(1) According to the Record List of the Second Batch of High-tech Enterprises recognized by
Shenzhen in 2021, Shenzhen Nanshan Power Co., Ltd. has obtained the National High-tech
Enterprise Certification no. GR202144204080, which is valid for 3 years. From 2021 to 2023, the
company enjoys the preferential corporate income tax of high-tech enterprises, the corporate
income tax is paid at the rate of 15.00%.
(2) According to the Document GKHZ (2020) No. 46, Shenzhen Shennandian Turbine
Engineering Technology Co., Ltd. has obtained the National High-tech Enterprise Certification no.
GR202044200352, which is valid for 3 years. From 2020 to 2022, the company enjoys the
preferential corporate income tax of high-tech enterprises, the corporate income tax is paid at the
rate of 15.00%.
(3) According to the Document GKHZ (2020) No. 46, Shenzhen Shen Nan Dian Environment
Protection Co., Ltd has obtained the National High-tech Enterprise Certification no.
GR202044200405, which is valid for 3 years. From 2020 to 2022, the company enjoys the
preferential corporate income tax of high-tech enterprises, the corporate income tax is paid at the
rate of 15.00%.
2. Value-added tax preferential policies:
Name of
Relevant regulation and Approval Approval Exemption Period of
Tax the
policies basis institution documents range validity
company
Environme Notice on "contents of Shenzhen SQSST[2018]N Resource 31 Aug.
VAT
nt products with Provincial o.: 18302 comprehensi 2018 to 31
97
Name of
Relevant regulation and Approval Approval Exemption Period of
Tax the
policies basis institution documents range validity
company
Protection comprehensive Office, ve utilization July 2022
Company utilization of resources SAT of VAT
and value-added tax (Qianhai refund
privilege of labor SAT)
service" (CS No. [2015]
78)
Administrative
Shenzhen VAT
Measures on VAT
Provincial Exemption
Exemption for
Engineerin Office, for
VAT Cross-boarder Taxable
g Company SAT Cross-boarde
Acts with VAT
(Qianhai r Taxable
Replaced by Business
SAT) Acts
Tax
V. Annotation of the items in consolidate financial statement
(1) Monetary fund
Item Ending balance Balance at the end of last year
Cash on hand 36,401.40 35,963.95
Bank savings 420,081,707.79 456,715,650.80
Other monetary fund 49,900,000.00 232,853,018.84
Total 470,018,109.19 689,604,633.59
Including: total amount saving aboard 5,829,122.75 51,205,621.70
No monetary funds that are restricted to use due to mortgage, pledge or freezing, and are placed overseas and the
repatriation of funds are restricted.
(2) Trading financial assets
Item Ending balance Balance at the end of last year
Financial assets measured by fair value and
with variation reckoned into current 1,207,902,833.22 560,000,726.39
gains/losses
Including: Debt instrument investment
Equity instrument investment
Other 1,207,902,833.22 560,000,726.39
Designated as financial assets measured by fair
value and with variation reckoned into current 72,873,680.00 72,873,680.00
gains/losses
Including: Debt instrument investment
Equity instrument investment 72,873,680.00 72,873,680.00
Total 1,280,776,513.22 632,874,406.39
(3) Account receivable
1. Age analysis
98
Account age Ending balance Balance at the end of last year
Within one year 81,916,225.11 73,610,161.02
1-2 years 54,706,402.12
Over 3 years 5,558,673.67 5,558,673.67
Subtotal 142,181,300.90 79,168,834.69
Less: Bad debt provision 5,558,673.67 5,558,673.67
Total 136,622,627.23 73,610,161.02
2. According to accrual method for bad debts
Ending balance
Book balance Bad debt provision
Category
Accrual Book value
Proportion
Amount Amount proportion
(%)
(%)
Accounts
receivable with
5,558,673.67 3.91 5,558,673.67 100.00 -
single provision
for bad debts
Provision for bad
debts by
combination of 136,622,627.23 96.09 136,622,627.23
risk
characteristics
Including:
136,622,627.23 96.09 - - 136,622,627.23
risk-free portfolio
Total 142,181,300.90 100.00 5,558,673.67 3.91 136,622,627.23
Balance at the end of last year
Book balance Bad debt provision
Category
Accrual Book value
Proportion
Amount Amount proportion
(%)
(%)
Accounts
receivable with
5,558,673.67 7.02 5,558,673.67 100.00
single provision
for bad debts
Provision for bad
debts by
combination of 73,610,161.02 92.98 73,610,161.02
risk
characteristics
Including:
73,610,161.02 92.98 73,610,161.02
risk-free portfolio
Total 79,168,834.69 100.00 5,558,673.67 7.02 73,610,161.02
With single provision for bad debts
99
Ending balance
Name Accrual
Bad debt
Book balance proportion Causes
provision
(%)
Shenzhen Petrochemical
Uncollectible in
Products Bonded Trading Co., 3,474,613.06 3,474,613.06 100.00
excepted
Ltd.
Zhongji Construction Uncollectible in
1,137,145.51 1,137,145.51 100.00
Development Co., Ltd. excepted
Shenzhen Fuhuade Power Co., Uncollectible in
800,000.00 800,000.00 100.00
Ltd excepted
Uncollectible in
Other 146,915.10 146,915.10 100.00
excepted
Total 5,558,673.67 5,558,673.67 100.00
3. Bad debt provision accrual, collected or switch back
Current amount changed
Balance at the end
Category Ending balance
of last year Collected or
Accrual Other
switch back
Accounts
receivable with
5,558,673.67 5,558,673.67
single provision for
bad debts
Total 5,558,673.67 5,558,673.67
4. Top 5 receivables at Ending balance by arrears party
Total period-end balance of top five receivables by arrears party amounting to 140,097,189.39
Yuan, takes98.53% of the total account receivable at period-end, bad debt provision accrual
correspondingly at period-end amounting as 3,474,613.06 Yuan
(4) Account paid in advance
1. Account paid in advance classified according to age
Ending balance Balance at the end of last year
Account age
Book balance Proportion (%) Book balance Proportion (%)
Within one year 34,913,117.53 98.15 63,880,339.98 99.17
1-2 years 596,049.24 1.68 441,309.74 0.69
Over 3 years 61,586.94 0.17 93,586.94 0.14
Total 35,570,753.71 100.00 64,415,236.66 100.00
100
2. Top five accounts paid in advance at period-end balance listed by object
The aggregate amount of the top five Ending balance of account paid in advance collected by the
arrears is 33,083,457.32 Yuan, accounting for 93.01% of the total number of account in Ending
balance of paid in advance
(5) Other account receivable
Balance at the end of last
Item Ending balance
year
Interest receivable
Dividends receivable
Other account receivable 27,889,289.20 25,841,206.66
Total 27,889,289.20 25,841,206.66
1. Other account receivable
(1) Age analysis
Balance at the end of last
Account age Ending balance
year
Within one year 4,647,856.81 3,823,549.28
1-2 years 450,539.90 553,190.98
2-3 years 1,288,672.21 1,765,816.10
Over 3 years 53,542,607.89 51,739,037.91
Subtotal 59,929,676.81 57,881,594.27
Less: Bad debt provision 32,040,387.61 32,040,387.61
Total 27,889,289.20 25,841,206.66
(2) By category
Ending balance
Book balance Bad debt provision
Category
Accrual Book value
Proportion
Amount Amount proportion
(%)
(%)
Accounts
receivable with
32,676,165.92 54.52 32,040,387.61 98.05 635,778.31
single provision
for bad debts
Provision for
27,253,510.89 45.48 - - 27,253,510.89
bad debts by
101
Ending balance
Book balance Bad debt provision
Category
Accrual Book value
Proportion
Amount Amount proportion
(%)
(%)
portfolio of
credit risk
Including:
risk-free 27,253,510.89 45.48
portfolio
Total 59,929,676.81 100.00 32,040,387.61 53.46 27,889,289.20
Balance at the end of last year
Book balance Bad debt provision
Category
Accrual Book value
Proportion
Amount Amount proportion
(%)
(%)
Accounts
receivable with
32,676,135.85 56.45 32,040,387.61 98.05 635,748.24
single provision
for bad debts
Provision for
bad debts by
25,205,458.42 43.55 25,205,458.42
portfolio of
credit risk
Including:
risk-free 25,205,458.42 43.55 25,205,458.42
portfolio
Total 57,881,594.27 100.00 32,040,387.61 55.36 25,841,206.66
With single provision for bad debts：
Ending balance
Name
Bad debt Accrual
Book balance Causes
provision proportion (%)
Huiyang Kangtai Industrial Unable to
14,311,626.70 14,311,626.70 100.00
Company recover
Unable to
Individual income tax 2,470,039.76 2,470,039.76 100.00
recover
Unable to
Dormitory amount receivable 2,083,698.16 1,736,004.16 83.31
recover
Unable to
Deposit receivable 1,601,059.26 1,312,974.95 82.01
recover
Personal receivables Unable to
7,498,997.87 7,498,997.87 100.00
recover
Shandong Jinan Generation Unable to
3,560,000.00 3,560,000.00 100.00
Equipment Plant recover
Zuohao Clothing (Shenzhen) Unable to
43,068.31 43,068.31 100.00
Co., Ltd. recover
Shenzhen Guanhua Printing and Unable to
53,591.75 53,591.75 100.00
Dyeing Co., Ltd. recover
Shenzhen Nanhua Printing and Unable to
41,407.01 41,407.01 100.00
Dyeing Co., Ltd. recover
102
Ending balance
Name
Bad debt Accrual
Book balance Causes
provision proportion (%)
Huizhou Bangde Agricultural
Unable to
Ecological Organic Fertilizer 25,788.00 25,788.00 100.00
recover
Co., Ltd.
Huizhou Lvhuan Fertilizer Co., Unable to
44,112.1 44,112.1 100.00
Ltd. recover
Unable to
Other 942,777.00 942,777.00 100.00
recover
Total 32,676,165.92 32,040,387.61 98.05
(3) Accrual of bad debt provision
Phases I Phases II Phases III
Expected credit
Expected credit losses for
Bad debt provision Expected credit losses for the entire Total
the entire duration (with
losses over next duration (without
credit impairment
12 months credit impairment
occurred)
occurred)
Balance at
32,040,387.61 32,040,387.61
year-begin
Balance at
year-begin of the
period
——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
Ending balance 32,040,387.61 32,040,387.61
(3) By nature
Nature Ending book balance Book balance at last year-end
Deposit and security deposit 7,729,415.18 8,213,574.51
Reserve fund 1,062,821.06 610,723.06
Withholding payment 4,423,719.97 9,182,463.86
103
Nature Ending book balance Book balance at last year-end
Current payment 30,752,297.03 24,404,083.76
Accounts receivable of Huidong
15,961,423.57 14,740,501.44
Server
Other - 730,247.64
Subtotal 59,929,676.81 57,881,594.27
Less: Bad debt provision 32,040,387.61 32,040,387.61
Total 27,889,289.20 25,841,206.66
(4) Top five other account receivables at period-end balance listed by arrears party
The total amount of the top five other receivables at the end of the period aggregated by the owing
party was 40,697,322.19 Yuan, accounting for 67.91% of the total balance of other receivables at
the end of the period.
(6) Inventory
1. Classification
Ending balance Balance at the end of last year
Item Inventory Inventory
Book balance falling price Book value Book balance falling price Book value
reserves reserves
Raw 144,898,465.3 58,744,912.5 86,153,552.7 149,489,121.2 61,358,046.5 88,131,074.7
materials 0 7 3 7 4 3
Low-value
consumable - - - 369,916.40 369,916.40
s
144,898,465.3 58,744,912.5 86,153,552.7 149,859,037.6 61,358,046.5 88,500,991.1
Total
0 7 3 7 4 3
2. Inventory falling price reserves
Current increased Current decreased
Balance at the end
Item Ending balance
of last year Switch-back or
Accrual Other Other
write-off
Raw
61,358,046.54 2,613,133.97 58,744,912.57
materials
Total 61,358,046.54 2,613,133.97 58,744,912.57
(7) Contract assets
Balance at the end of last
Item Ending balance
year
104
Balance at the end of last
Item Ending balance
year
Operation and maintenance project settlement
1,040,000.00
accounts receivable
Subtotal 1,040,000.00
Provision for impairment of contract assets
Total 1,040,000.00
(8) Other current assets
Balance at the end of last
Item Ending balance
year
VAT input tax deductible 2,292,514.98 324,040,257.98
Income tax paid in advance 6,583,089.98 6,583,089.98
Accrual interest of time deposit - 1,195,914.66
Other 49,399.00 49,399.00
Total 8,925,003.96 331,868,661.62
105
(9) Long-term equity investment
Changes +,-
Period-end
Balance at the
The invested Investment Other Declaration Ending balance of
end of last Other
entity Additional gains/losses comprehensive of cash Provision for balance depreciation
year Disinvestment changes Other
investment recognized by income dividends or impairment reserves
in equity
equity method adjustment profits
1. Joint venture
Huidong Server
Harbor
Comprehensive 6,986,655.19 -1,471,602.77 5,515,052.42
Development
Company
Total 6,986,655.19 -1,471,602.77 5,515,052.42
106
(10) Other equity instrument investment
1. Other equity instrument investment
Balance at the end of
Item Ending balance
last year
CPI Jiangxi Nuclear Power Company 60,615,000.00 60,615,000.00
Zhongsheng Technology (Jiangsu) Co., Ltd. 140,000,000.00 140,000,000.00
Yuanzhi Credit Suisse New Generation Information
100,000,000.00
Technology Equity Investment Fund
Shenzhen Petrochemical Products Bonded Trading Co.,
2,500,000.00 2,500,000.00
Ltd. - investment cost
Shenzhen Petrochemical Products Bonded Trading Co.,
-2,500,000.00 -2,500,000.00
Ltd. - change in fair value
Total 300,615,000.00 200,615,000.00
2. Non trading equity instrument investment
Dividen Reasons of
Retained Designated as the
d retained
earnings investment measured at fair
income earnings
Accumulat Accumulat transferred value and whose changes
Item recogniz transferred
ed gain ed loss from other reckoned into other
ed in the from other
comprehens comprehensive income
current comprehens
ive income (explain reasons)
period ive income
CPI Jiangxi
Nuclear Intents to holding for a
Power long-term
Company
Zhongshen
g
Intents to holding for a
Technology
long-term
(Jiangsu)
Co., Ltd.
Yuanzhi
Ruixin
New
Generation
Intents to holding for a
Information
long-term
Technology
Equity
Investment
Fund
Shenzhen
Petrochemi
cal
-2,500,000. Intents to holding for a
Products
00 long-term
Bonded
Trading
Co., Ltd.
-2,500,000.
Total
00
107
(11) Investment real estate
1. Investment real estate measured at cost
Item House and building Total
1. Original book value
(1) Balance at the end 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) Balance at the end of last year 7,698,963.16 7,698,963.16
(2) Current increased 91,318.80 91,318.80
(3) Current decreased
(4) Ending Balance 7,790,281.96 7,790,281.96
3. Depreciation provision
(1) Balance at the end of last year
(2) Current increased
(3) Current decreased
(4) Ending Balance
4. Book value
(1) Ending book value 1,917,733.00 1,917,733.00
(2) Book value of end of last year 2,009,051.80 2,009,051.80
(12) Fixed assets
1. Fixed assets and disposal of fixed asset
Item Ending balance Balance at the end of last year
Fixed assets 616,039,027.88 643,256,398.30
Disposal of fixed assets 168,352.55
Total 616,207,380.43 643,256,398.30
108
2. Fixed assets
Item House and buildings Machinery equipment Transportation tools Other Total
1. Original book value
(1) Balance at the end of last year 426,009,822.97 3,191,370,467.04 14,881,705.15 61,313,836.82 3,693,575,831.98
(2) Current increased - 2,290,055.69 - 245,646.63 2,535,702.32
—Purchase - - - 245,646.63 245,646.63
Construction in progress
- 2,290,055.69 - - 2,290,055.69
transfer-in
(3) Current decreased - 460,447,110.57 - 34,335.56 460,481,446.13
—Disposal or scrapping - 460,447,110.57 - 34,335.56 460,481,446.13
---Decrease in disposal of
subsidiaries
(4) Ending Balance 426,009,822.97 2,733,213,412.16 14,881,705.15 61,525,147.89 3,235,630,088.17
2. Accumulated depreciation
(1) Balance at the end of last year 286,391,266.26 2,308,965,299.56 8,678,482.02 46,874,270.77 2,650,909,318.61
(2) Current increased 5,064,242.49 7,543,455.65 881,933.91 1,428,063.14 14,917,695.19
—Accrual 5,064,242.49 7,543,455.65 881,933.91 1,428,063.14 14,917,695.19
(3) Current decreased - 404,662,174.15 - 30,902.01 404,693,076.16
—Disposal or scrapping - 404,662,174.15 - 30,902.01 404,693,076.16
—Decrease in disposal of
subsidiaries
(4) Ending Balance 291,455,508.75 1,911,846,581.06 9,560,415.93 48,271,431.90 2,261,133,937.64
109
Item House and buildings Machinery equipment Transportation tools Other Total
3. Depreciation provision
(1) Balance at the end of last year 22,469,672.10 376,720,124.57 56,300.08 164,018.32 399,410,115.07
(2) Current increased - - - - -
—Accrual - - - - -
—Other - - - - -
(3) Current decreased - 40,952,992.42 - - 40,952,992.42
—Disposal or scrapping - 40,952,992.42 - - 40,952,992.42
—Decrease in disposal of
subsidiaries
—Other
(4) Ending Balance 22,469,672.10 335,767,132.15 56,300.08 164,018.32 358,457,122.65
4. Book value
(1) Ending book value 112,084,642.12 485,599,698.95 5,264,989.14 13,089,697.67 616,039,027.88
(2) Book value of end of last year 121,297,084.35 501,536,843.17 6,146,923.05 14,275,547.73 643,256,398.30
110
3. Idle fixed assets temporary
Accumulated Depreciation
Item Original book value Book value Note
depreciation provision
Housing &
127,893,412.10 99,084,318.83 19,801,856.52 9,007,236.75
buildings
Machinery
108,281,079.11 78,046,419.35 28,514,659.76 1,720,000.00
equipment
Total 236,174,491.21 177,130,738.18 48,316,516.28 10,727,236.75
4. Fixed assets without property rights certificate
Reasons for failing to
Item Book value complete the property rights
certificate
Circulating Water Pump House 1,009,125.92 Procedures uncompleted
Cooling Tower 673,259.25 Procedures uncompleted
Complex Building 443,246.19 Procedures uncompleted
Comprehensive building canteen 237,602.25 Procedures uncompleted
Chemical water treatment
232,960.00 Procedures uncompleted
workshop
Main entrance mail room 69,418.02 Procedures uncompleted
Total 2,665,611.63
(13) Construction in progress
1. Construction in progress and Engineering materials
Item Ending balance Balance at the end of last year
Construction in process 5,609,774.20 6,088,768.51
Engineering materials
Total 5,609,774.20 6,088,768.51
111
2. Construction in progress
Ending balance Balance at the end of last year
Item
Depreciation Depreciation
Book balance Book value Book balance Book value
provision provision
Cogeneratio 60,307,712.4 58,610,372.0 1,697,340.3 60,307,712.4 58,610,372.0 1,697,340.3
n 4 6 8 4 6 8
Oil to Gas 13,230,574.5 13,230,574.5 13,230,574.5 13,230,574.5
-
Works 3 3 3 3
Technical 3,912,433.8 4,391,428.1
5,383,683.82 1,471,250.00 5,862,678.13 1,471,250.00
innovation 2 3
78,921,970.7 73,312,196.5 5,609,774.2 79,400,965.1 73,312,196.5 6,088,768.5
Total
9 9 0 0 9 1
112
3. Changes of significant projects in construction in the period
Proportion
of
Transferred Other Accumulativ Rate of
Balance at accumulativ Project Including:
Current fixed assets decreas Ending e amount of interest Capital
Item Budget the end of e project progress capitalizatio
increased in this e in the Balance capitalizatio capitalizatio sources
last year investment (%) n of interest
period period n of interest n (%)
in budget
(%)
Self-raise
Cogeneratio 60,307,712.4 60,307,712.4 6,476,185.4 d and
60,000,000.00 100.51 100.00
n 4 4 6 borrowin
g
Oil to Gas 13,230,574.5 13,230,574.5 Self-raise
74,000,000.00 17.88 17.88
Works 3 3 d
Not
Technical 1,811,061.3 2,290,055.6 Not Self-raise
5,862,678.13 5,383,683.82 applicabl
innovation 8 9 applicable d
e
134,000,000.0 79,400,965.1 1,811,061.3 2,290,055.6 78,921,970.7 6,476,185.4
Total
0 0 8 9 9 6
113
(14) Intangible assets
1. Intangible assets
Patent
Item Land use right Software Total
technology
I. Original book value
1. Opening balance 60,813,994.76 3,886,757.08 64,700,751.84
2. Current increased - - 103,773.59 103,773.59
(1) Purchase - -
(2) Other 103,773.59
3. Current decreased 103,773.59 103,773.59
(1) Purchase - -
(2) Other 103,773.59
4.Ending balance 60,813,994.76 3,782,983.49 103,773.59 64,700,751.84
II. Accumulated
-
amortization
1. Opening balance 40,643,255.55 3,591,589.43 44,234,844.98
2. Current increased 311,314.80 27,937.32 12,107.06 351,359.18
(1) Accrual 311,314.80 27,937.32 5,188.74 344,440.86
(2) Other 6,918.32 6,918.32
3. Current decreased 6,918.32 6,918.32
(1) Purchase - -
(2) Other 6,918.32 6,918.32
4. Ending balance 40,954,570.35 3,612,608.43 12,107.06 44,579,285.84
III. Depreciation
-
provision
1. Opening balance - - -
2. Current increased -
(1) Accrual - - -
3. Current decreased -
(1) Disposal - - -
4. Ending balance - - -
IV. Book value -
1. Ending book value 19,859,424.41 170,375.06 91,666.53 20,121,466.00
2. Opening book value 20,170,739.21 295,167.65 - 20,465,906.86
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 Property rights certificate is
496,082.05
gallery undergoing
Total 496,082.05
114
(15) Long-term deferred expenses
Balance at the Current Amortized in
Item Other decrease Ending balance
end of last year increased the Period
Decoration
1,716,460.30 248,665.56 1,467,794.74
amount
Total 1,716,460.30 248,665.56 1,467,794.74
(16) Deferred income tax assets and deferred income tax liabilities
Deferred income tax assets without offsetting
Ending balance Balance at the end of last year
Item Deductible Deductible
Deferred income tax Deferred income
temporary temporary
assets tax assets
difference difference
Bad debt provision 1,937,145.52 484,286.38 1,937,145.52 484,286.38
Changes in fair value of
other equity instrument 2,500,000.00 625,000.00 2,500,000.00 625,000.00
investments
Total 4,437,145.52 1,109,286.38 4,437,145.52 1,109,286.38
(17) Short-term loans
1. Classification
Balance at the end of last
Item Ending balance
year
Credit loans 1,330,598,458.05 856,861,840.80
Accrued interest 3,740,138.60 1,582,322.45
Total 1,334,338,596.65 858,444,163.25
(18) Note payable
Balance at the end of last
Species Ending balance
year
Bank acceptance 135,025,883.27
Total 135,025,883.27
(19) Account payable
115
1. Account payable
Item Ending balance Balance at the end of last year
Materials 8,386,783.92 2,325,920.64
Electricity 1,496,861.44 1,078,066.07
Labor 5,731,540.00 3,299,480.00
Total 15,615,185.36 6,703,466.71
(20) Wages payable
1. Wages payable
Balance at the end Current
Item Current increased Ending balance
of last year Decreased
Short-term remuneration
40,963,433.02 54,391,066.00 53,680,371.33 41,674,127.69
Post-employment
welfare-defined 569,587.94 8,192,164.72 6,646,864.72 2,114,887.94
contribution plans
Severance Pay
- - - -
Other welfare due within
- - - -
one year
Total 41,533,020.96 62,583,230.72 60,327,236.05 43,789,015.63
2. Short-term remuneration
Balance at the end Current
Item Current increased Ending balance
of last year Decreased
(1) Wages, bonuses,
allowances and 40,511,401.25 44,939,801.21 44,253,012.74 41,198,189.72
subsidies
(2) Welfare for workers
62,077.00 489,000.00 460,200.00 90,877.00
and staff
(3) Social insurance 2,839,953.36 2,839,953.36 -
Including: Medical
2,719,017.40 2,719,017.40 -
insurance
Work
65,475.30 65,475.30 -
injury insurance
Maternity
55,460.66 55,460.66 -
insurance
(4) Housing
5,232,609.76 5,232,609.76 -
accumulation fund
(5) Labor union
expenditure and
389,954.77 889,701.67 894,595.47 385,060.97
personnel education
expense
(6) Short-term paid
absence
(7) Short-term profit
sharing plan
116
Balance at the end Current
Item Current increased Ending balance
of last year Decreased
(8) Other
Total 40,963,433.02 54,391,066.00 53,680,371.33 41,674,127.69
3. Defined contribution plans (DCP)
Balance at the Current
Item Current increased Ending balance
end of last year Decreased
Basic endowment insurance 6,009,613.72 6,009,613.72 -
Unemployment insurance 67,651.00 67,651.00 -
Enterprise annuity 569,587.94 2,114,900.00 569,600.00 2,114,887.94
Total 569,587.94 8,192,164.72 6,646,864.72 2,114,887.94
(21) Taxes payable
Item Ending balance Balance at the end of last year
VAT 1,281,618.67 706,615.96
Environmental tax 62,437.77
Personal Income Tax 1,497,246.21 1,402,165.48
Urban maintenance and construction tax 44,798.79 43,868.84
Local education surcharge 17,270.44 16,902.90
Education surcharge 25,905.66 25,354.34
Property tax 2,139,073.51 1,524,487.98
Stamp duty 63,247.50
Other 495,375.97 300,759.12
Total 5,501,289.25 4,145,839.89
(22) Other account payable
Balance at the end of last
Item Ending balance
year
Interest payable
Other account payable 22,717,231.20 62,678,254.02
Total 22,717,231.20 62,678,254.02
117
1. Other account payable
(1) Other payable by nature
Item Ending balance Balance at the end of last year
Engineering funds 9,655,703.14 4,991,246.36
Quality assurance 6,558,306.04 6,308,254.95
Accrued expenses 3,506,506.84 8,537,422.41
Material payment - 30,721,390.14
Other 2,996,715.18 12,119,940.16
Total 22,717,231.20 62,678,254.02
(2) Top five other payable
The ending balance of the top five other payable aggregated by the arrears party is 5,659,038.21
Yuan, accounting for 24.91% of the total ending balance of other payable.
(23) Accrual liability
Balance at the end Current
Item Current Decreased Ending balance Reason
of last year increased
Pending
15,000,000.00 15,000,000.00
litigation
Total 15,000,000.00 15,000,000.00
Note: On 29 November 2013, Shenzhen Server and Jiahua Building Products (Shenzhen) Co., Ltd. (Jiahua
Building) signed a supplementary term aiming at equity transfer over equity attribution and division of Yapojiao
Dock, which belongs to Shenzhen Server, Huidong Server, and Huidong Nianshan Town Government as well as its
subordinate Nianshan Group. In order to solve this remaining historic problem, Shenzhen Server saved
12,500,000.00 Yuan 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 15,000,000.00 Yuan. Relevant losses with the event concerned predicted amounting to 27,
500,000.00 Yuan by the Group, the balance at the end of 2019 was 26,646,056.28 Yuan.
On November 12, 2020, Huidong Server and other related parties reached a preliminary settlement agreement on
the land disputes in the estimated liabilities. According to this, accrual liability of 6,584,816.78 Yuan was reversed
by Shenzhen Server. In 2020, Shenzhen Server to bear the lawyer’s and other expenses in accordance with the
agreed proportion, that is 137,731.22 Yuan, the accrual liability has 6,722,548.00 Yuan declined in total in the
Period. Balance of 19,923,508.28 Yuan refers to the repayment obligations that are likely to occur before the
completion of the above matters.
On November 12, 2020, Huizhou Commercial Construction and Development Corporation and Huidong Server
118
Harbor Comprehensive Development Company signed the "Creditor's Rights Assignment Agreement", and the
reconciliation record was executed by the People's Court of Huidong County, which partially solved the issues of
ownership and division of rights and interests of Yapojiao Wharf. On January 20, 2021, Shenzhen Server received
5,000,000.00Yuan returned from the joint account. Accordingly, Shenzhen Server reverted its estimated liabilities
of 4,573,508.28Yuan. In 2021, Shenzhen Serverbore the lawyer and other expenses of 350,000 Yuan for the issues
in accordance with the agreed proportion, the estimated liabilities totally reduced by 4,923,508.28 Yuan in current
period. The balance of 15,000,000.00 Yuan is a repayment obligation likely to occur before the completion of the
above matters.
(24) Deferred income
Balance at the end Current Current
Item Ending balance Reason
of last year increased Decreased
Government
88,079,970.09 3,148,452.32 84,931,517.77
subsidy
Total 88,079,970.09 3,148,452.32 84,931,517.77
Items with government subsidy involved:
Subsidy
amount
Amount
newly Assets
Balance at the included in Other Ending
Liability increased related/income
end of last year current profit change Balance
in the related
and loss
current
period
Government
subsidies for
low-nitrogen 24,104,286.46 286,402.74 23,817,883.72 Assets related
equipment
renovation
Subsidies for the
Motor Energy
Efficiency 332,640.00 17,280.00 315,360.00 Assets related
Improvement
Funding Scheme
Support fund of
recycling
6,157,268.11 323,501.46 5,833,766.65 Assets related
economy for
sludge drying
Treasury
subsidies for 2,316,250.00 127,500.00 2,188,750.00 Assets related
sludge drying
Special funds
for energy
conservation and 456,148.66 5,525.72 450,622.94 Assets related
emission
reduction
Subsidy for
quality
promotion of the 54,061,987.96 2,365,909.08 51,696,078.88 Assets related
air environment
in Shenzhen
2021 Technical
651,388.90 22,333.32 629,055.58 Assets related
Transformation
119
Project
Total 88,079,970.09 3,148,452.32 - 84,931,517.77
(25) Other non-current liabilities
Item Ending balance Balance at the end of last year
Amounts payable to other shareholders 50,310.78 50,310.78
Total 50,310.78 50,310.78
(26) Share capital
Changes in this period (+ -)
Balance at the end
Item New Ending balance
of last year Bonus Capitalizing
shares Other Subtotal
shares from reserves
issued
Total
602,762,596.00 602,762,596.00
shares
(27) Capital reserve
Balance at the end
Item Current increased Current Decreased Ending balance
of last year
Capital premium(Share
233,035,439.62 233,035,439.62
premium)
Other capital reserve
129,735,482.48 129,735,482.48
Total 362,770,922.10 362,770,922.10
120
(28) Other comprehensive income
Current period
Less: written in Less: written in
other other
comprehensive comprehensive
Balance at the
Balance at Account income in income in Less : Belong to Belong to Ending
Item end of last
year-begin before previous period previous period income parent minority balance
year
income tax in and carried and carried tax company after shareholders
the year forward to forward to expense tax after tax
gains and retained
losses in earnings in
current period current period
1. Other comprehensive income items
which will not 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
-2,500,000.00 -2,500,000.00
other equity instrument
Total other comprehensive income -2,500,000.00 -2,500,000.00
121
(29) Surplus reserve
Balance at the end
Item Current increased Current Decreased Ending balance
of 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
(30) Retained profit
Item Current amount Last-period amount
Retained profit of last year before adjusted 319,351,219.81 758,799,931.94
Total retained profit adjusted (increased with +,
decreased with -)
Retained profit at beginning of the year after adjusted 319,351,219.81 758,799,931.94
Add: net profit attributable to shareholders of parent
-94,098,149.09 1,456,269.68
company
Less: withdrawal of statutory surplus reserve
Common Stock dividend payable
Retained profit at period-end 225,253,070.72 760,256,201.62
(31) Operating income and operating cost
Current amount Last-period amount
Item
Income Cost Income Cost
Main business 228,639,162.83 282,392,283.22 376,034,393.36 351,092,415.61
Other business 604,379.24 94,148.99 568,000.02 117,808.30
Total 229,243,542.07 282,486,432.21 376,602,393.38 351,210,223.91
(32) Tax and surcharge
Item Current amount Last-period amount
Property tax 1,521,117.59 324,101.18
Stamp duty 335,629.10 266,520.80
Environmental protection tax 12,569.90 15,666.44
Land holding tax 452,503.02 150,379.56
122
Item Current amount Last-period amount
Urban maintenance and construction
335,501.06 472,057.07
tax
Education surcharge 142,789.14 250,372.97
Local education surcharge 96,152.80 166,915.38
Total 2,896,262.61 1,646,013.40
(33) Sales expense
Item Current amount Last-period amount
Sludge treatment costs 192,016.41
Salary, welfare and social insurance 349,797.37
Communication expenses
6,500.00
Social expenses 47,432.90
Fleet cost 7,000.00
Inspection charges 2,358.49
Labor insurance fee 9,137.32
Rental fee 3,600.00
Property insurance 48,684.42
Agency engagement fee 6,152.26
Other 23,757.63
Total 696,436.80
(34) Administration expense
Item Current amount Last-period amount
Wages 20,381,559.27 16,794,177.76
Rental fee 3,046,301.79 3,313,168.39
Social expenses 913,815.31 1,256,510.86
Agency fee 697,476.86 674,252.82
Fleet cost 1,220,827.30 1,627,388.66
Board charges 313,528.29 549,111.22
Depreciation 3,949,187.75 3,487,075.49
Amortization of intangible assets 36,421.38 112,174.94
123
Item Current amount Last-period amount
Eco fee 87,602.71 70,012.09
Food expenses 1,434,218.09 1,538,651.55
Corporate culture fee 184,358.80 145,089.00
Property management fee 493,842.17 485,464.34
Office fee 200,798.79 169,218.09
Communication expenses 521,423.22 551,184.44
Business travel expenses 53,447.95 189,323.48
Fee for stock certificate 238,083.50 238,018.32
Union funds 439,523.97 367,422.85
Employee education expenses 19,839.00 20,380.94
Other 9,545,388.53 8,425,543.31
Total 43,777,644.68 40,014,168.55
(35) R&D expenses
Item Current amount Last-period amount
Employee's salary 15,356,997.69 3,236,384.22
Depreciation 1,306,880.89 106,285.00
Patent fee 34,283.02 17,960.38
Repair fee 374,427.53
Total 17,072,589.13 3,360,629.60
(36) Financial expense
Item Current amount Last-period amount
Interest expenses 20,539,845.79 13,028,372.76
Less: capitalized interest
Expenses interest 20,539,845.79 13,028,372.76
Less: interest income 3,594,848.74 10,344,030.33
Exchange loss (gains is listed with ”-”) -273,651.02 11,161.84
Other 58,370.08 139,530.44
Total 16,729,716.11 2,835,034.71
124
(37) Other income
Item Current amount Last-period amount
Government subsidies 4,440,645.78 3,368,979.50
Total 4,440,645.78 3,368,979.50
Government subsidies included in other income
Last-period Asset related /
Item Current amount
amount income related
Special fund subsidy of the improvement
2,365,909.08 2,365,909.08 Asset related
of Shenzhen air enviornment quality
Subsidy for low-nitrogen transformation 234,909.80 276,757.74 Asset related
Support of the enterprise informatization
25,490.12 Asset related
construction
Subsidy for energy-saving technology
57,018.66 57,018.66 Asset related
renovation
Treasury subsidies for sludge drying 127,500.00 127,500.00 Asset related
Support fund of recycling economy for
323,501.46 323,501.46 Asset related
sludge drying
Funded of energy efficiency improvement
17,280.00 17,280.00 Asset related
for electric machine
2021 Technical Transformation Subsidy 22,333.32 Asset related
Personal tax handing fee refund 243,753.86 175,522.44 Income related
Job stabilization subsidy 76,639.60 Income related
Funding subsidy of the industrial "carbon
200,000.00 Income related
peaking" pilot demonstration
Retained worker training subsidy 128,000.00 Income related
Subsidy for the high-tech enterprise
643,800.00 Income related
mltiplier support
Total 4,440,645.78 3,368,979.50
(38) Investment income
Item Current amount Last-period amount
Long-term equity investment income by
-1,471,602.77 -1,148,715.33
equity
Investment income during the holding
29,212,829.84 13,977,075.28
period of Trading financial assets
Total 27,741,227.07 12,828,359.95
(39) Income from disposal of assets
125
Amount reckoned into
Item Current amount Last-period amount non-recurring gains/losses of the
Period
Profit and loss on
974,699.74
disposal of fixed assets
Total 974,699.74
(40) Non-operating revenue
Amount reckoned into
non-recurring
Item Current amount Last-period amount
gains/losses of the
Period
Reversal of accrual liabilities 5,000,000.00
Other 261,868.55
Total 5,261,868.55
(41) Non-operating expenditure
Amount reckoned into
Item Current amount Last-period amount non-recurring
gains/losses of the Period
External donation 10,000.00 10,000.00 10,000.00
Loss of scrap from non-current assets 880.34 25,388.00 880.34
Other 217,615.51 217,615.51
Total 228,495.85 35,388.00 228,495.85
(42) Earnings per share
1. Basic earnings per share
Basic earnings per share is calculated by dividing the consolidated net profit attributable to
ordinary shareholders of the parent company by the weighted average number of ordinary shares
issued by the company:
Item Current amount Last-period amount
Consolidated net profit attributable to ordinary
-94,098,149.09 1,456,269.68
shareholders of the parent company
Weighted average number of common shares issued by
602,762,596.00 602,762,596.00
the company
Basic earnings per share -0.1561 0.0024
2. Diluted earnings per share
126
Item Current amount Last-period amount
Consolidated net profit attributable to ordinary
-94,098,149.09 1,456,269.68
shareholders of the parent company (diluted)
Weighted average number of common shares issued by
602,762,596.00 602,762,596.00
the company (diluted)
Diluted earnings per share -0.1561 0.0024
(43) Cash flow statement
1. Cash received with other operating activities concerned
Item Current amount Last-period amount
Interest income 4,800,937.34 12,142,721.92
Government subsidy 1,048,439.60 679,508.93
Intercourse funds 38,142,088.17
Other 1,502,291.50 3,055,829.97
Total 45,493,756.61 15,878,060.82
2. Other cash paid in relation to operation activities
Item Current amount Last-period amount
Fee payment 21,958,179.33 24,840,140.78
Other 384,000.00 467,804.70
Total 22,342,179.33 25,307,945.48
3. Other cash received in relation to investment activities
Item Current amount Last-period amount
Debt repayment received from Huidong Server 5,000,000.00
Total 5,000,000.00
(44) Supplementary information to statement of cash flow
1. Supplementary information to statement of cash flow
Supplementary information
Current amount Last-period amount
127
Supplementary information
Current amount Last-period amount
1. Net profit adjusted to cash flow of operation activities
Net profit -101,765,725.67 -761,593.85
Add: assets depreciation provision
Depreciation of fixed assets 15,009,013.99 24,944,215.60
Amortization of intangible assets
344,440.86 420,194.42
Amortization of long-term deferred expenses
248,665.56 -683,491.47
Loss from disposing fixed assets, intangible assets and
- -974,699.74
other long-term assets (income listed with “-“)
Loss on retirement of fixed assets (gain is listed with
880.34 25,388.00
“-”)
Loss from changes of fair value (income listed with “-“)
Financial expense (gain listed with “-”) 20,539,845.79 13,028,372.76
Investment loss (gain listed with “-”) -27,741,227.07 -12,828,359.95
Decrease of deferred income tax asset( (increase is
2,347,438.40 -962,540.21
listed with “-”)
Decrease of inventory (increase is listed with “-”) 314,198,626.07 -37,938,391.09
Decrease of inventory (increase is listed with “-”)
-22,593,874.97 84,651,618.52
Net cash flow arising from operating activities
200,588,083.30 68,920,712.99
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:
Ending Balance of cash 420,118,109.19 436,470,238.63
Less: Opening Balance of cash 456,751,614.75 397,101,272.21
Add: Ending Balance of cash equivalent 49,900,000.00 15,353,018.84
Less: Opening Balance of cash equivalent 232,853,018.84 367,500,000.00
Net increasing of cash and cash equivalents
-219,586,524.40 -312,778,014.74
2. Composition of cash and cash equivalent
Balance at the end of
Item Ending balance
last year
I. Cash 420,118,109.19 456,751,614.75
Including: Cash on hand 36,401.40 35,963.95
420,081,707.79 456,715,650.80
Bank savings available for payment needed
128
Balance at the end of
Item Ending balance
last year
Other monetary capital available for payment needed
II. Cash equivalent 49,900,000.00 232,853,018.84
including: bond investment due within three months
III. Balance of cash and cash equivalent at period-end 470,018,109.19 689,604,633.59
Including: Cash and cash equivalent of the parent company
or subsidiaries with use restricted
(45) Assets of ownership or use right restricted
No assets of ownership or use right restricted in the period.
(46) Foreign currency
1. Foreign currency
Balance of foreign Balance of RMB converted
Item Conversion rate
currency at period-end at period-end
Monetary fund
834,327.52 6.71140 5,599,505.72
Including: USD
Euro 1,017.87 7.00840 7,133.64
HKD 323,613.10 0.85519 276,750.69
SGD 4,078.03 4.81700 19,643.87
(47) Government subsidies
1. Government subsidies related to assets
The amount included in current Item of the
gain/loss or loss resulting from amount
related costs off-setting included in
current
Type Amount Balance sheet gain/loss or
Current Last-period loss resulting
amount amount from related
costs
off-setting
Subsidy for
Deferred
low-nitrogen 43,032,780.00 234,909.80 276,757.74 Other income
income
transformation
of informatization Deferred
520,000.00 25,490.12 Other income
construction income
Support fund of
Deferred
recycling economy for 11,750,000.00 323,501.46 323,501.46 Other income
income
sludge drying
Treasury subsidies for Deferred
5,100,000.00 127,500.00 127,500.00 Other income
sludge drying income
Special funds for energy Deferred
1,530,000.00 57,018.66 57,018.66 Other income
conservation and income
129
The amount included in current Item of the
gain/loss or loss resulting from amount
related costs off-setting included in
current
Type Amount Balance sheet gain/loss or
Current Last-period loss resulting
amount amount from related
costs
off-setting
emission reduction
Motor engery efficiency Deferred
518,400.00 17,280.00 17,280.00 Other income
improment subsidy income
Subsidy for quality
promotion of the air Deferred
70,977,273.00 2,365,909.08 2,365,909.08 Other income
environment in income
Shenzhen
2021 Technical Deferred
670,000.00 22,333.32 Other income
Transformation Project income
Total 134,098,453.00 3,148,452.32 3,193,457.06
2. Government subsidies related to income
The amount included in current Item of the
gain/loss or loss resulting from amount included
related costs off-setting in current
Type Amount gain/loss or loss
Last-period resulting from
Current amount
amount related costs
off-setting
VAT refund
243,753.86 243,753.86 175,522.44 Other income
Job stabilization subsidy 76,639.60 76,639.60 Other income
Funding subsidy of the industrial
"carbon peaking" pilot 200,000.00 200,000.00 Other income
demonstration
Retained worker training subsidy 128,000.00 128,000.00 Other income
Subsidy for the high-tech
643,800.00 643,800.00 Other income
enterprise mltiplier support
Total 1,292,193.46 1,292,193.46 175,522.44
VI. Change of consolidate scope
No change in the company included in the consolidated statement scope during the reporting
period.
VII. Equity in other entity
(1) Equity in subsidiaries
1. Composition of the Group
Subsidiary Main Shareholding ratio (%) Acquired way
130
operation
Directly Indirectly
place
Shen Nan Dian (Zhongshan) Electric Power Establishment
Zhongshan 55.00 25.00
Co., Ltd.
Shenzhen Shennandian Turbine Engineering Establishment
Shenzhen 60.00 40.00
Technology Co., Ltd
Shenzhen Shen Nan Dian Environment Establishment
Shenzhen 70.00 30.00
Protection Co., Ltd.
Shenzhen Server Petrochemical Supplying Establishment
Shenzhen 50.00
Co., Ltd
Establishment
Shenzhen New Power Industrial Co., Ltd. Shenzhen 75.00 25.00
Establishment
Shen Nan Energy (Singapore) Co., Ltd. Singapore 100.00
Establishment
Hong Kong Syndisome Co., Ltd. Hong Kong 100.00
Establishment
Zhongshan Shennandian Storage Co., Ltd. Zhongshan 80.00
Zhuhai Hengqin Zhuozhi Investment Establishment
Zhuhai 99.96
Partnership (Limited Partnership)
2. Important non-wholly-owned subsidiary
Share-holding Gains/losses
Ending equity of
Subsidiary ratio of minority attributable to
minority
(%) minority in the Period
Shen Nan Dian (Zhongshan) Electric Power
20.00 -6,064,893.02 -83,945,737.14
Co., Ltd.
131
3. Main finance of the important non-wholly-owned subsidiary
Ending Balance /Yuan Balance at the end of last year/Yuan
Subsidiar
Non-curr Non-curr
y Current Non-curren Current Total Current Non-curren Current Total
Total assets ent Total assets ent
assets t assets liability liability assets t assets liability liability
liability liability
Shennand
ian
(Zhongsh
an)
40,743,62 227,044,49 267,788,12 682,313,06 5,203,746 687,516,80 32,544,63 231,154,25 263,698,88 647,836,81 5,266,290 653,103,11
Power
7.77 5.17 2.94 2.17 .48 8.65 6.55 2.88 9.43 9.17 .86 0.03
Co., Ltd.
(“Zhongs
han
Power”)
Current amount/Yuan Last-period amount/Yuan
Subsidiary Total Total
Operation Cash flow from Operation Cash flow from
Net profit comprehensive Net profit comprehensive
Income operation activity Income operation activity
income income
Shennandian
(Zhongshan)
-30,324,465.1 -18,254,913.1
Power Co., Ltd. 16,508,874.54 -30,324,465.11 -53,373,996.76 70,054,400.77 -18,254,913.13 -3,240,430.86
1 3
(“Zhongshan
Power”)
132
(2) Equity in joint venture and cooperative enterprise
1. Major joint venture and cooperative enterprise
Name of joint Accounting treatment on
Main Share-holding ratio（%）
venture or Main business investment for joint
operation
cooperative activities venture and cooperative
place Directly Indirectly
enterprise enterprise
Huidong Server
Renshan
Harbor
Town, Wharf
Comprehensive 40.00 Equity method
Huidong operation
Development
County
Company
2. Main financial information of significant joint ventures or associates
Opening
Ending balance /Current
Balance/Last-period
amount
amount
Total book value of investment 5,515,052.42 6,986,655.19
Total numbers measured by share-holding ratio
Net profit -1,471,602.77 -1,148,715.33
Other comprehensive income
Total comprehensive income -1,471,602.77 -1,148,715.33
VIII. Risks relating to financial instruments
The Company's main financial instruments include equity investment, notes receivable, long-term
and short-term loans, accounts receivable, accounts payable, other payable, etc., see details of each
financial instrument in related items of this annotation III (10). 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.
(1) Credit risk
Credit risk refers to the risk that one party to a financial instrument fails to perform its obligations,
财务报表附注第 133 页
causing the other party to suffer financial losses. The Company is mainly faced with customer
credit risk caused by credit sales. Before signing a new contract, the Company will evaluate the
credit risk of the new customer, including the external credit rating and, in some cases, the bank
credit certificate (when this information is available). The company has set a credit limit for each
customer, which is the maximum amount without additional approval.
The company ensures that the company's overall credit risk is within a controllable range through
quarterly monitoring of existing customer credit ratings and monthly review of accounts
receivable aging analysis. When monitoring the credit risk of customers, they are grouped
according to their credit characteristics. Customers rated as "high risk" will be placed on the
restricted customer list, and only with additional approval, the company can sell them on credit in
the future, otherwise they must be required to pay the corresponding amount in advance.
(2) 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.
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.
As of 30 June 2022, interest on bank loans at floating interest rate totalled 3,772,950.38 Yuan.
Based on the above assumptions and with other variables unchanged, the pre-tax impact of a 5%
changes in interest rate on current gain/loss and shareholders’ equity is as follows:
Current year Last year
Rate changes
Impact on Impact on
Impact on profit Impact on profit
shareholders’ equity shareholders’ equity
5% increased -188,647.52 -188,647.52 -651,409.17 -643,610.18
5% decreased 188,647.52 188,647.52 651,409.17 643,610.18
财务报表附注第 134 页
(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 2022, except for the balance
of foreign currency monetary items of (46), 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.
(3) Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation of
settlement by means of cash or other financial assets. The Company's policy is to ensure that it has
sufficient cash to repay the debts due. Liquidity risk is centrally controlled by the Company's
financial department. The financial department monitors cash balances, marketable securities that
can be cashed at any time, and rolling forecasts of cash flows in the next 12 months to ensure that
the company has sufficient funds to repay debts under all reasonable forecasts.
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. (1) Equity in other entity
(3) Joint venture and affiliated enterprise of the Group
See details in Note VII. (2) Interest in joint venture arrangements or associates
(4) Other related party
Other related party Relationship with the Company
Shenzhen Energy Group Co., Ltd. Legal person holding more than 5% of the
company's shares
Shenzhen Guangju Industrial Co., Ltd. Legal person holding more than 5% of the
company's shares
HONG KONG NAM HOI (INTERNATIONAL) LTD. Legal person holding more than 5% of the
company's shares
Legal person indirectly holding more than 5% of
Shenzhen Capital Holdings Co., Ltd.
the company's shares through Shenzhen Energy
财务报表附注第 135 页
Other related party Relationship with the Company
Group
Directors, supervisors and senior management of the Key managers
company
(5) Receivable/payable items of related parties
1. Receivable
Item Related party Ending book balance Book balance at last year-end
Other account
receivable
Huidong Server 14,911,484.45 14,740,501.44
Huidong Server managed
1,049,939.12 1,014,945.19
account
Total 15,961,423.57 15,755,446.63
X. Commitment and Contingency
(1) Major Commitment
As of 30 June 2022, the company has no commitments that need to be disclosed.
(2) Contingency
As of 30 June 2022, the company has no commitments that need to be disclosed.
XI. Events Occurring after the Balance Sheet Date
As of the date of this report, the company has no contingencies that need to be disclosed.
XII. Other important matters
(1) Segment information
1. Determining basis and accounting policies of the report divisions
According to the Company’s internal organizational structure, management requirements and
internal reporting system, the Company’s operating business is divided into three business
divisions, i.e. power supply and heating, fuel trading, and other businesses. The Company’s
management regularly evaluates the business performance of these divisions in order to determine
the allocation of resources and evaluate the performance.
Divisional reporting information is disclosed in accordance with the accounting policies and
measurement standards adopted when each division reports to the management. These
财务报表附注第 136 页
measurement bases are consistent with the accounting and measurement bases used when
preparing financial statements.
2. Financial information of the reportable segment
Power supply &
Item Fuel trading Other Fuel trading Total
heating
Operation
238,367,006.93 546,857.12 22,925,068.56 32,595,390.54 229,243,542.07
income
Operation cost
301,428,093.71 91,318.80 13,594,750.26 32,627,730.56 282,486,432.21
Total assets 97,796,694.0 378,762,612.3 1,930,286,193.7 2,998,519,336.4
4,452,246,223.67
6 8 0 1
Total liabilities 17,526,333.9 1,598,958,848.1 1,521,943,146.6
3,054,510,678.87 48,864,982.05
0 8 4
XIII. Note to main items of financial statements of the Company
(1) Account receivable
1. Age analysis
Account age Ending balance Balance at the end of last year
Within one year 71,242,570.68 35,966,056.15
Over 3 years
Subtotal 71,242,570.68 35,966,056.15
Less: Bad debt provision
Total 71,242,570.68 35,966,056.15
2. According to accrual method for bad debts
Ending balance
Book balance Bad debt provision
Category
Accrual Book value
Proportion
Amount Amount proportion
(%)
(%)
With single provision
for bad debts
Provision for bad
debts by combination 71,242,570.68 100.00 71,242,570.68
of risk characteristics
Including: risk-free
71,242,570.68 100.00 71,242,570.68
portfolio
Total 71,242,570.68 100.00 71,242,570.68
财务报表附注第 137 页
Balance at the end of last year
Book balance Bad debt provision
Category
Accrual Book value
Proportion
Amount Amount proportion
(%)
(%)
With single provision
for bad debts
Provision for bad
debts by combination 35,966,056.15 100.00 35,966,056.15
of risk characteristics
Including: risk-free
35,966,056.15 100.00 35,966,056.15
portfolio
Total 35,966,056.15 100.00 35,966,056.15
Provision for bad debts by portfolio:
Ending balance
Name
Account receivable Bad debt provision Accrual proportion (%)
Grid accounts
71,242,570.68
receivable
Total 71,242,570.68
3. Top 5 receivables at ending balance by arrears party
Total period-end balance of top five receivables by arrears party amounting to 71,242,570.68
Yuan, takes 100.00% of the total account receivable at period-end, bad debt provision accrual
correspondingly at period-end amounting as 0.00 Yuan
(2) Other account receivable
Balance at the end of last
Item Ending balance
year
Interest receivable
Dividends receivable
Other account receivable 560,100,745.56 618,436,063.60
Total 560,100,745.56 618,436,063.60
1. Other account receivable
(1)Age analysis
财务报表附注第 138 页
Balance at the end of last
Account age Ending balance
year
Within one year 207,443,387.57 98,550,452.19
1-2 years 26,562,799.10 64,095.20
2-3 years 21,857,481.00 35,844,839.81
Over 3 years 331,566,721.33 511,306,319.84
Subtotal 587,430,389.00 645,765,707.04
Less: Bad debt provision 27,329,643.44 27,329,643.44
Total 560,100,745.56 618,436,063.60
(2) By category
Ending balance
Book balance Bad debt provision
Category
Accrual Book value
Proportion
Amount Amount proportion
(%)
(%)
With single
provision for bad 27,965,421.75 4.76 27,329,643.44 97.73 635,778.31
debts
Provision for bad
debts by
combination of 559,464,967.25 95.24 - 559,464,967.25
risk
characteristics
Including:
risk-free 559,464,967.25 95.24 559,464,967.25
portfolio
Total 587,430,389.00 100.00 27,329,643.44 4.65 560,100,745.56
Balance at the end of last year
Book balance Bad debt provision
Category
Accrual Book value
Proportion
Amount Amount proportion
(%)
(%)
With single
provision for bad 27,965,391.68 4.33 27,329,643.44 97.73 635,748.24
debts
Provision for bad
debts by
combination of 617,800,315.36 95.67 617,800,315.36
risk
characteristics
Including:
617,800,315.36 95.67 617,800,315.36
risk-free
财务报表附注第 139 页
Balance at the end of last year
Book balance Bad debt provision
Category
Accrual Book value
Proportion
Amount Amount proportion
(%)
(%)
portfolio
Total 645,765,707.04 100.00 27,329,643.44 4.23 618,436,063.60
With single provision for bad debts：
Ending balance
Name
Accrual
Book balance Bad debt provision Causes
proportion (%)
Unable to
Individual income tax 2,470,039.76 2,470,039.76 100.00
recover
Dormitory amount Unable to
2,083,698.16 1,736,004.16 83.31
receivable recover
Huiyang Kangtai Unable to
14,311,626.70 14,311,626.70 100.00
Industrial Company recover
Beneficiary fund
Unable to
dividends (personal 7,498,997.87 7,498,997.87 100.00
recover
receivables)
Unable to
Deposit receivable 1,601,059.26 1,312,974.95 82.01
recover
Total 27,965,421.75 27,329,643.44 97.73
(3) Accrual of bad debt provision
Phases I Phases II Phases III
Expected credit
Expected credit
Expected losses for the
Bad debt provision losses for the entire Total
credit losses entire duration
duration (without
over next 12 (with credit
credit impairment
months impairment
occurred)
occurred)
Balance at year-begin 27,329,643.44 27,329,643.44
Balance at year-begin of the
period
——Turn to phase II
——Turn to phase III
——Return to Phase II
——Return to Phase I
Current accrual
Current switch back
财务报表附注第 140 页
Phases I Phases II Phases III
Expected credit
Expected credit
Expected losses for the
Bad debt provision losses for the entire Total
credit losses entire duration
duration (without
over next 12 (with credit
credit impairment
months impairment
occurred)
occurred)
Rewrite in the period
Write-off in the period
Other changes
Ending balance 27,329,643.44 27,329,643.44
(5) By nature
Nature Ending book balance Book balance at last year-end
Related party transactions 557,692,420.65 616,401,741.49
Dormitory receivable 2,083,698.16 2,083,698.16
Deposit receivable 1,601,059.26 1,750,498.58
Personal money 8,931,302.60 8,567,330.57
Other 17,121,908.33 16,962,438.24
Subtotal 587,430,389.00 645,765,707.04
Less: Bad debt provision 27,329,643.44 27,329,643.44
Total 560,100,745.56 618,436,063.60
(3) Long-term equity investment
Ending balance Balance at the end of last year
Item
Depreciation Depreciation
Book balance Book value Book balance Book value
provision provision
Investme
716,893,717.0 429,592,447.1 287,301,269.8 716,893,717.0 429,592,447.1 287,301,269.8
nt in
0 9 1 0 9 1
subsidiary
716,893,717.0 429,592,447.1 287,301,269.8 716,893,717.0 429,592,447.1 287,301,269.8
Total
0 9 1 0 9 1
1. Investment to subsidiary
Impairment Period-end
The invested Balance at the Current Current provision balance of
Ending balance
entity end of last year increased Decreased accrual in depreciation
the Period reserves
财务报表附注第 141 页
Impairment Period-end
The invested Balance at the Current Current provision balance of
Ending balance
entity end of last year increased Decreased accrual in depreciation
the Period reserves
Shenzhen
Xiefu Oil
26,650,000.00 26,650,000.00
Supply
Company
Shennan
Energy
6,703,800.00 6,703,800.00
Singapore
Company
Shenzhen
New Power
71,270,000.00 71,270,000.00
Industrial
Co., Ltd.
Shen Nan
Dian
(Zhongshan)
410,740,000.00 410,740,000.00 410,740,000.00
Electric
Power Co.,
Ltd.
Shenzhen
Shennandian
Turbine
6,000,000.00 6,000,000.00
Engineering
Technology
Co., Ltd
Shenzhen
Shen Nan
Dian
55,300,000.00 55,300,000.00 18,852,447.19
Environment
Protection
Co., Ltd.
Zhuhai
Hengqin
Zhuozhi
Investment 140,229,917.00 140,229,917.00
Partnership
(Limited
Partnership)
Total 716,893,717.00 716,893,717.00 429,592,447.19
(4) Operation revenue and operation cost
Current amount Last-period amount
Item
Revenue Cost Revenue Cost
Main business 96,445,440.00 153,240,868.95 149,153,876.16 170,891,694.03
Other business 32,628,912.66 2,830.19 35,777,286.09 491,345.55
Total 129,074,352.66 153,243,699.14 184,931,162.25 171,383,039.58
(5) Investment income
财务报表附注第 142 页
Item Current amount Last-period amount
Investment income from trading financial assets during the
28,915,295.59 13,977,075.28
holding period
Total 28,915,295.59 13,977,075.28
XIV. Supplementary information
(1) Statement of non-recurring gains/losses
Item Amount Note
Gains and losses from disposal of non-current assets
Tax refund or mitigate due to examination-and-approval beyond
power or without official approval document
Governmental subsidy reckoned into current gains/losses(not
including the subsidy enjoyed in quota or ration, which are 4,440,645.78
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
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 Trading financial assets and tradable financial liabilities, and 29,212,829.84
investment income from disposal of Trading 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
财务报表附注第 143 页
Item Amount Note
Other non-operating income and expenditure except for the
-228,495.85
aforementioned items
Other gains and losses items complying with definition for
non-recurring gains and losses
Subtotal 33,424,979.77
Less: impact on income tax
Less: impact on minority equity 17,574.38
Total 33,407,405.39
(2) ROE and EPS
Weighted average EPS (Yuan)
Profit in the Period
ROE (%)）
Basic EPS Diluted EPS
Net profit attributable to shareholders
-6.00% -0.1561 -0.1561
of the listed company
Net profit attributable to shareholders
of the listed company after deducting -8.13% -0.2115 -0.2115
non-recurring gains and losses
财务报表附注第 144 页
