Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
Shenzhen Nanshan Power Co., Ltd.
Annual Report 2022
April 2023
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Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
Annual Report 2022
Section I Important Notice, Contents and Interpretation
The Board of Directors, the Board of Supervisors, all directors, supervisors and senior officers of Shenzhen
Nanshan Power Co., Ltd. guarantee that the 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.
Chairman Kong Guoliang, person in charge of accounting and GM Chen Yuhui, CFO Zhang Xiaoyin and
head of accounting department (chief accountants) Lin Xiaojia guarantee that the Financial Report of the
annual report disclosed is truthful, accurate and complete.
Except independent director Mr. Chen Zetong was unable to personally attend the Board Meeting to
review annual report due to work reasons, authorized independent director Mr. Du Wei to attend the
meeting and exercise voting rights on his behalf. All other directors attended the Board Meeting for
annual report deliberation.
The Company plans not to pay cash dividends, issue bonus shares and increase share capital by converting
from public reserves this year.
Concerning the forward-looking statements with future planning involved in the Annual Report, they do
not constitute a substantial commitment for investors. Investors are advised to exercise caution of
investment risks.
The Report has been prepared in both Chinese and English. If there are any discrepancies, the Chinese
version shall prevail. Investors are advised to read the full text of the Report carefully.
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Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
Contents
Section I Important Notice, Contents and Interpretation ................................................................................................. 2
Section II Company Profile and Main Financial Indexes ................................................................................................. 6
Section Ⅲ Management Discussion and Analysis ............................................................................................................ 11
Section IV Corporate Governance .................................................................................................................................... 34
Section V Environment and Social Responsibilities ......................................................................................................... 53
Section VI Important Matters ........................................................................................................................................... 56
Section VII Changes in Shares and Particular about Shareholders ............................................................................... 62
Section VIII Preferred Shares ........................................................................................................................................... 69
Section IX Bonds ................................................................................................................................................................. 70
Section X Financial Report ................................................................................................................................................ 71
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Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
List of Reference Documents
I. Original Annual Report of 2022 carrying the signature of the legal representative of the Company.
Ⅱ. Financial statements with signature and seal of Person in charge of the Company, person in charge of
accounting works、CFO and person in charge of accounting organ(accountant in charge).
III. Original audit report with seal of accounting firms and signature and seal of CPA.
IV. The originals of all company documents and announcements which are publicly disclosed on designated
media during the reporting period.
Ⅴ. Place of reference: Shenzhen Stock Exchange, the office of the Company's Board of Directors.
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Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
Interpretation
Items Refers to Contents
Company, the Company, Shen Nan
Refers to Shenzhen Nanshan Power Co., Ltd.
Dian, the listed company
China Securities Regulatory China Securities Regulatory
Refers to
Commission Commission
State-owned Assets Supervision and
SASAC of Shenzhen Refers to Administration Commission of the
People's Government of Shenzhen
Shen Nan Dian Zhongshan Shen Nan Dian (Zhongshan) Electric
Refers to
Company Power Co., Ltd.
Shen Nan Dian Engineering Shenzhen Shennandian Turbine
Refers to
Company Engineering Technology Co., Ltd.
Shen Nan Dian Environment Shenzhen Shen Nan Dian
Refers to
Protection Company Environment Protection Co., Ltd.
Shenzhen Server Petrochemical
Server Company Refers to
Supplying Co., Ltd.
Shenzhen New Power Industrial Co.,
New Power Company Refers to
Ltd.
Shen Nan Energy (Singapore) Co.,
Singapore Company Refers to
Ltd.
Nanshan Thermal Power Station of
Nanshan Thermal Power Station Refers to
Shenzhen Nanshan Power Co., Ltd.
Zhongshan Nanlang Power Plant of
Zhongshan Nanlang Power Plant Refers to Shen Nan Dian (Zhongshan) Electric
Power Co., Ltd.
Audit institution,
LIXINZHONGLIAN CPAS (Special
LIXINZHONGLIAN, accounting Refers to
General Partnership)
organ
Company Law of the People's
Company Law Refers to
Republic of China
Securities Law of the People's
Securities Act Refers to
Republic of China
Rules Governing the Listing of
Stock Listing Rules Refers to
Stocks on Shenzhen Stock Exchange
Articles of Association of Shenzhen
Articles of Association Refers to
Nanshan Power Co., Ltd.
Except the special description of the
Yuan, ten thousand Yuan, one monetary unit, the rest of the
Refers to
hundred million Yuan monetary unit is Yuan, ten thousand
Yuan, one hundred million Yuan
January 1, 2022 to December 31,
Reporting period Refers to
2022
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Section II Company Profile and Main Financial Indexes
I. Company information
Shen Nan Dian A, Shen
Stock abbreviation 000037, 200037 Stock code
Nan Dian B
Stock exchange Shenzhen Stock Exchange
Name of the Company (in
Shenzhen Nanshan Power Co., Ltd.
Chinese)
Short form of the Company
Shen Nan Dian
(in Chinese)
Foreign name of the
Shenzhen Nanshan Power Co., Ltd.
Company (if any)
Legal representative Kong Guoliang
Registered address No. 2097, Yueliangwan Avenue, Nanshan District, Shenzhen, Guangdong Province
Postal code 518054
Historical changes of
No
registered address
16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, Guangdong
Office address
Province
Postal code 518053
Website http://www.nsrd.com.cn
Email public@nspower.com.cn;investor@nspower.com.cn
II. Contact person and contact information
Secretary of the Board of Directors Securities affairs representative
Name Zou Yi
16/F-17/F, Hantang Building, OCT,
Address Nanshan District, Shenzhen,
Guangdong Province
Tel. 0755-26003611
Fax 0755-26003684
Email investor@nspower.com.cn
III. Information disclosure and place of preparation
Website of the stock exchange on which the Company
Shenzhen Stock Exchange: http://www.szse.cn/
discloses its annual report
Name and website of the media on which the Company Securities Times: http://www.stcn.com/; CNINF:
discloses the annual report http://www.cninfo.com.cn/
Office of the Board of Directors, 17/F, Hantang
Preparation place for annual report Building, OCT, Nanshan District, Shenzhen,
Guangdong Province
IV. Registration changes of the Company
Uniform social credit code 91440300618815121H
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Changes of main business since listing (if applicable) N/A
Previous changes in controlling shareholders (if any) No controlling shareholder
V. Other relevant information
CPA engaged by the Company
LIXINZHONGLIAN CPAS (Special General
Name of CPA
Partnership)
1-1-2205-11, North Zone, Financial and Trade Center,
Office address of CPA No. 6865, Asia Road, Pilot Free Trade Zones (Dong-
jiang Free Trade Port Zone), Tianjin
Signing accountants Cao Wei, Liu Xinfa
Sponsor engaged by the Company for performing continuous supervision duties in the reporting period
□Applicable Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in the reporting
period
□Applicable Not applicable
VI. 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
2022 2021 current year over the 2020
previous year (+,-)
Operating income
694,227,657.28 757,175,743.41 -8.31% 985,253,831.58
(RMB)
Net profit attributable
to shareholders of the
-160,163,240.67 -439,448,712.13 63.55% 64,024,291.32
listed company
(RMB)
Net profit attributable
to shareholders of the
listed Company after
-225,967,573.71 -514,142,213.75 56.05% 7,601,038.59
deducting non-
recurring gains and
losses (RMB)
Net cash flows from
operating activities 207,168,402.26 -39,258,302.07 627.71% 260,725,409.02
(RMB)
Basic earnings per
-0.2657 -0.7291 63.56% 0.1062
share (RMB/share)
Diluted earnings per
-0.2657 -0.7291 63.56% 0.1062
share (RMB/share)
Return on weighted Up 13.52 percentage
-10.43% -23.95% 3.15%
average net assets points
End of 2022 Year end of 2021 Increase/decrease y- Year end of 2020
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o-y
Total assets (RMB) 2,606,216,345.99 2,790,002,824.41 -6.59% 3,020,830,930.06
Net assets
attributable to
shareholders of the 1,455,129,894.84 1,615,293,135.51 -9.92% 2,054,741,847.64
listed company
(RMB)
The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal years
is negative, and the audit report of last year shows that the ability to continue operating is uncertain
□Yes No
The lower of net profit before and after deducting the non-recurring gains/losses is negative
Yes □ No
Item 2022 2021 Note
Mainly the income from
Operating income (RMB) 694,227,657.28 757,175,743.41
power generation
Amount deducted from Mainly income from
1,611,967.02 1,218,981.05
operating income (RMB) housing lease
Other operating income
Amount after deduction of
692,615,690.26 755,956,762.36 after deducting the rental
operating income (RMB)
income
VII. 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.
VIII. Quarterly main financial indexes
Unit: RMB
Q1 Q2 Q3 Q4
Operating income 75,090,604.86 154,152,937.21 296,803,666.77 168,180,448.44
Net profit attributable
to shareholders of the -38,834,600.08 -55,263,549.01 -48,481,519.82 -17,583,571.76
listed company
Net profit attributable
to shareholders of the -53,403,178.00 -74,102,376.48 -65,686,340.91 -32,775,678.32
listed Company after
deducting non-
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recurring gains and
losses
Net cash flows from
-34,049,453.61 234,637,536.91 18,368,492.90 -11,788,173.94
operating activities
Whether there are significant differences between the above-mentioned financial indexes or its total number and
the relevant financial indexes disclosed in the Company’s quarterly report and semi-annual report
□ Yes No
IX. Non-recurring profit and loss items and amounts
Applicable □Not applicable
Unit: RMB
Item 2022 2021 2020 Description
Gains/losses from the
disposal of non-current
asset (including the write- -1,171,953.71 974,699.74 -1,144,118.91
off that accrued for
impairment of assets)
Governmental subsidy
calculated into current gains
and losses (while closely
related with the normal
business of the Company,
Amortization of
the government subsidy that
9,333,093.72 23,396,336.60 13,833,445.53 government subsidy
accord with the provision of
related to assets
national policies and are
continuously enjoyed in
line with a certain standard
quota or quantity are
excluded)
Gains/losses on debt
7,593,783.90
restructuring
Gains/losses arising from
contingency that is
not related to the normal 5,000,000.00 6,584,816.78
operation business of the
Company
Gains/losses of fair value
changes arising from
holding of the trading
financial asset, trading
financial liability and
investment earnings
obtained from disposing the Mainly income from
58,227,971.21 47,887,839.11
trading financial asset, wealth management
trading financial liability,
and financial assets
available for sale, except
for the effective hedging
business related to normal
operation of the Company
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Other non-operating
income and expenses other -635,065.42 13,652.99 -118,229.62
than those mentioned above
Other gains/losses items
that meet the definition of 33,534,881.55
non-recurring gains/losses
Less: impact on income tax 152,683.61
Impact on minority
shareholders’ equity (after- -50,287.24 2,579,026.82 3,708,642.89
tax)
Total 65,804,333.04 74,693,501.62 56,423,252.73 --
Details of other gains/losses items that meet 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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Section Ⅲ Management Discussion and Analysis
I. Industry of the Company during the reporting period
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.
The electricity consumption of the entire society in the country was 8.64 trillion kWh in 2022, up 3.6% year-on-
year, according to the Analysis and Forecast Report on the National Power Supply and Demand Situation in 2023
released by the China Electricity Council. In the first, second, third and fourth quarters, the electricity
consumption increased by 5.0%, 0.8%, 6.0% and 2.5%, respectively. Affected by the epidemic and other factors,
the electricity consumption growth slowed down in the second and fourth quarters. From the perspective of
industry, the electricity consumption of the primary industry was 114.6 billion kWh, up 10.4% year on year; The
electricity consumption of the secondary industry was 5.70 trillion kWh, up 1.2% year on year; The electricity
consumption of the tertiary industry was 1.49 trillion kWh, up 4.4% year on year; Urban and rural residents'
domestic electricity consumption was 1.34 trillion kWh, up 13.8% year on year. A total of 27 provinces in the
country were experiencing positive growth in electricity consumption, and the central region led the growth rate.
The energy output of industrial enterprises above designated size in the country was 8.39 trillion kWh, up 2.2%
year-on-year, of which the thermal power, hydropower and nuclear power generation of industrial enterprises
above designated size increased by 0.9%, 1.0% and 2.5% respectively year-on-year. In 2022, full-caliber grid-
connected wind power and solar energy output increased by 16.3% and 30.8% year-on-year respectively. Full-
caliber non-fossil energy output increased by 8.7% year-on-year, accounting for 36.2% of total energy output, up
1.7 percentage points year-on-year. Full-caliber coal energy output increased by 0.7% year-on-year, accounting
for 58.4% of total full-caliber energy output, down 1.7 percentage points year-on-year. Coal-based power is still
the most important source of electricity supply in China. In the third quarter, when the water supply was obviously
short, the full-caliber coal power energy output increased by 9.2% YOY, which better compensated for the decline
in hydropower output and gave full play to the role of coal power in guaranteeing supply.
In 2022, Guangdong Province comprehensively carried out the trial operation of the southern (starting from
Guangdong) electricity spot market settlement, and the “medium and long-term+spot” market fully shifted to the
absolute price mode. According to the Southern (starting with Guangdong) Electricity Spot Market 2023 Annual
Report, Guangdong Province's maximum regulated load was 142 million kW (July 25), up 5% year on year; The
electricity generated and received by unified dispatching was 761.6 billion kWh, basically flat year on year. The
maximum transmission electricity from the western provinces of China is 43.29 million kW, an increase of about
4.4 million kW compared with the annual plan and a total of 181.5 billion kWh from the western provinces of
China. The electricity supply met the demand throughout the year, and there was no peak load shifting and power
limiting. The installed capacity of unified dispatching is 171 million kW, including 134.5 million kW for
provincial dispatching and 36.53 million kW for local regulation. In terms of unit production, the newly installed
backbone power units in Guangdong Province amount to 21 (sets) with a total capacity of 6.14 million kW. In
terms of unit utilization hours, they are 4,720 hours for coal-fired generator units, down 353 hours year-on-year;
2,587 hours for gas-fire generator units, down 468 hours year-on-year; 7,117 hours for nuclear power generator
units, down 385 hours year-on-year (8,039 hours after deducting that of the Jindao nuclear power plant, up 46
hours year-on-year); 2,479 hours for hydroelectric generator units, up 826 hours year-on-year; 1,125 hours for PV
generator units, down 89 hours year-on-year; 2,347 hours for wind power generator units, up 464 hours year-on-
year; 3,501 hours for biomass, down 2,944 hours year-on-year. The accumulated net energy output of wind power,
PV power, hydropower and biomass power is 80.7 billion kWh, up 48% year-on-year. The accumulated net
energy output nuclear power is 96.12 billion kWh, down 4.9% year-on-year.
China's natural gas production in 2022 is 217.84 billion cubic meters, up 6.3% year-on-year, according to third-
party data from the natural gas industry; The import volume of natural gas is 153.48 billion cubic meters, down
9.7% YoY; The export volume of natural gas is 5.92 billion cubic meters, up 5.7% YoY; The
apparent consumption of natural gas was 365.39 billion cubic meters, down 1.0% YoY. In terms of LNG supply
and demand, the apparent consumption of LNG in China in 2022 is 28.726 million tons, down 23.81% YoY.
Among them, domestic LNG supply is 20.60.14 million tons, up 16.17% YoY, while imported LNG tanker supply
is 8.1213 million tons, down 59.33% YoY. In terms of LNG prices, the average ex-factory price of LNG in China
in 2022 was RMB 6,784/ton, up 38.12% YoY. Among them, the average ex-factory price of domestic LNG was
RMB 6,527/ton, up 29.48% YoY. The average ex-station price of imported LNG was RMB 7,196/ton, up 31.77%
YoY and the average delivery price of LNG in China was RMB 7,037/ton, up 36.17% YoY. Generally, in 2022,
international geopolitical turmoil led to an expected increase in energy supply shortages and rose international
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energy prices. The international LNG spot price once hit a record high, and continued to run at a high level, while
the international crude oil price as a whole rose, and the price of China's natural gas imports based on a long term
also followed suit. Under the pressure of increasing costs, domestic natural gas supply enterprises basically sell
natural gas in accordance with the principle of favorable prices, coupled with tight supply, domestic pipeline gas
and LNG prices have been pushing up, and the average price of natural gas purchases of the Company has
increased by about 32% compared with the same period last year in 2021, which directly leads to the Company
facing the situation of inverted power generation costs and electricity sales prices, and serious losses in power
generation. On the other hand, the government issued a series of measures to encourage power generation
companies to implement electricity guarantee, including an annual contract cost facilitation compensation of
0.064 yuan/kWh for market-oriented gas unit from April 2022 to December 2022. According to the Guangdong
Province Power Exchange's Circular on the Settlement and Trial Operation of Southern (Guangdong) Electricity
Spot Market (GDJY [2022] No. 205) in October 2022, from August 2022 to March 2023, an compensation of
0.064 yuan/kWh in addition to original compensation for changes in gas-fired turbine generators was given. The
above subsidies mechanism alleviated the operating difficulties faced by Guangdong Province Power Exchange to
a certain extent, but still could not reverse the loss.
II. Main business engaged by the Company during the reporting period
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.
The main business of the Company is production and operation of power supply and heating, as well as technical
consulting and service related to power station (plants). At the end of the reporting period, the Company had two
gas turbine power plants, with a total of five 9E gas-steam combined cycle power generator units, with a total
installed capacity of 900,000 kW (including Nanshan Thermal Power Plant 3 × 180,000kW, Zhongshan Nanlang
Power Plant 2 × 180,000 kW). Both gas turbine power plants are located in the power load center area of the Pearl
River Delta, which are the main peak shaving power sources in the region, and are currently in normal production
and operation.
On February 21, 2022, after deliberation and approval at the 5th extraordinary meeting of the 9th Board of
Directors of the Company, the Company started the shutdown and decommissioning of two 9E gas turbines of
Shen Nan Dian Zhongshan Company, and submitted its application for shutdown and decommissioning to the
Guangdong Province Energy Bureau on November 24, 2022. Shen Nan Dian Zhongshan Company will continue
its power generation business before obtaining the approval, which will not have a significant impact on the
current production and operation of the Company and Shen Nan Dian Zhongshan Company.
During the reporting period, the electricity business faced many challenges, such as repeated Covid-19 epidemic,
fierce electric power market competition and high fuel prices. In order to minimize the negative impact of the
external environment on the Company's operating performance, the Company has implemented a series of
business layout and management changes with innovative thinking and tenacious perseverance, defined annual
business objectives and policies, and adopted targeted major measures. On the basis of paying close attention to
work safety management, the Company has continuously increased economic operation management efforts in
line with the trend of the accelerating process of reform of electricity market in Guangdong Province, organized
two subordinate power stations to actively participate in the electric power marketing competition and achieved
good results, contributing to reducing losses.
During the reporting period, the Company's non-electricity business also faced tremendous pressures and
challenges. The Shen Nan Dian Engineering Company continues to develop technical consulting and technical
services for domestic gas turbine power plant construction while resisting the pressure of epidemic control and
prevention and promoting overseas projects. The Shen Nan Dian Environment Protection Company has shifted its
focus to exploring the path of business transformation and upgrading due to the environmental protection pressure
and the adjustment of Shenzhen municipal sludge disposal route.
Information of the main production and operation
Item Current Period Same Period Last Year
Total installed capacity (10,000 KW) 90 90
Installed capacity of newly
0 0
commissioned unit (10,000 KW)
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Planned installed capacity of
0 0
approved projects (10,000 KW)
Planned installed capacity of
construction in progress (10,000 0 0
KW)
Energy output (100 million kWh) 8.60 11.48
Net energy output or sales of
8.58 11.44
electricity (100 million kWh)
Average power consumption rate of
3.50% 3.25%
power station (%)
Utilization hours of power station
946 1,263
(hours)
The Company's power sales business
Applicable □Not applicable
In 2022, the Company's two power stations achieved a total net energy output of 858 million kWh, a year-on-year
decline of 25%. The annual purchase, market electricity and other medium and long-term contract electricity
totaled 1.441 billion kWh. The electricity completion of each subsidiary power station of the Company is as
follows: Nanshan Thermal Power Station completed net energy output of 800 million KWH, and the annual
purchasing, market electricity and other medium and long-term contract electricity totalled 928 million KWH;
Zhongshan Nanlang Power Plant completed net energy output of 58 million kWh, and the annual procurement,
market electricity and other medium and long-term contract electricity totaled 513 million kWh.
Reasons for significant changes in relevant data
□Applicable Not applicable
III. Analysis of core competitiveness
In recent years, the epidemic situation of Covid-19 epidemic has been repeated constantly. Influenced by the
macro-economic situation and the common problems in the gas turbine power generation industry, the main
business of the Company is facing increasing difficulties and challenges. However, the basic core competitiveness
formed by more than 30 years of operation and development, the strong support of the Company's main
shareholders, and the innovative measures taken by the Company's Board of Directors and the management team
in operation and management, it has laid a necessary foundation for the Company to continuing operation and
seek transformation and development. During the reports period, the Company did all the work steadily, and made
every effort to promote the high-quality development of the Company, and the core competitiveness of the
Company was further consolidated and improved, with the aim of “revitalizing stock, introducing increment and
transforming development” and the principle of scientific, pragmatic, efficient, fair and equitable management.
1. Management culture of hard work and innovation. The Company has a group of management talents with
innovation consciousness and hard work spirit. Through deepening the reform of human resources and
establishing a performance-oriented performance assessment and incentive mechanism, the Company advocates
and creates a management culture of unity, hard work, innovation and enterprising within the Company. At the
same time, the Company attaches great importance to and vigorously promote the system, management system
and compliance system construction, adhere to the rule of law, scientific and rigorous, efficient and orderly
standardized management, and through fine, standardized management guidance, for the Company to tap the
internal potential and actively seek external opportunities to lay a good foundation.
2. Professional and enterprising technical personnel. With more than 30 years of hard work and influence in the
gas turbine power generation industry, the Company have recruited and trained a number of technical experts and
professionals in the gas turbine power generation industry and accumulated rich experience in the field of gas
turbine power station construction and operation management. In order to meet the market situation of further
promoting the reform of electricity market in Guangdong Province, the Company has set up a professional
electricity marketing team to study electricity trading strategies and build mathematical model of electricity
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marketing. The rich experience accumulated in the aspect of electricity marketing has laid a solid foundation for
the Company to participate in developing new electric power market and integrate in the tide of reform of
electricity market. In addition, the Shen Nan Dian Engineering Company has provided technical advice,
commissioning, and operation assurance for dozens of domestic and overseas gas turbine power stations. The
company's training center has successively undertaken the technical personnel training business for dozens of
domestic and foreign power stations. It has become a well-known professional talent training base in the domestic
gas turbine industry and establish a good reputation and professional brand image in the same industry.
3. Professional and technical level that keeps pace with the times. The company has a number of independent
utility model patents and software copyrights, jointly drafted a national standard, and a number of invention
patents are under review by the China National Intellectual Property Administration. On December 23, 2021, the
Company was recognized by the Shenzhen Municipal Accreditation Administration as the second batch of high-
tech enterprises in 2021, and the Company's scientific research and innovation work was unanimously recognized
by the society. During the reporting period, the Company has applied to the State Intellectual Property Office for
14 utility model patents in total, of which 12 have been authorized. The total number of authorized patents of the
Company has reached 38 (including 4 invention patents) with 8 software copyrights, which greatly improved the
Company's brand image and industry competitiveness.
4. Rich experience in industrial exploration. The Company gives full play to its own advantages, accumulates
experience in the construction and operation of new energy industries such as electrochemical energy storage and
PV, and actively explores scientific and technological projects such as virtual power station platforms. Nanshan
Thermal Power Station, a subsidiary of the Company, has filled the domestic gap in the application of energy
storage system in the field of “black start” for 9E-class unit after technical transformation. Through the successful
operation of black-start projects, the preliminary work of independent energy storage power plants and the
construction and operation of PV projects, the Company has accumulated certain experience in the preliminary
preparation, construction, commissioning, operation and maintenance of energy storage projects, and trained a
number of professionals. In addition, with the talent accumulation and technical advantages of traditional
electricity industry, the Company will continue to rely on the electric power market and technical strength to tap
the stock potential. To enter the new energy service field reserves the technology and talent, has laid a solid
foundation.
5. Leading environmental protection. The generator units of our power stations are all gas-fired units, which use
natural gas as the fuel. The CO2 emission in flue gas is about 42% of that of coal-fired power stations, which
provides strong support for the goal of CO2 emissions peaking and carbon neutrality of China. In accordance with
the “Shenzhen Blue” Sustainable Action Plan for 2018 of the People's Government of Shenzhen, the Company
has fully completed the “Shenzhen Blue” renovation of the #3, #10 and #1 combustion engines of Nanshan
Thermal Power Station, after which the nitrogen oxides emissions of each unit were reduced to below 15 mg/m3,
reaching the world's most advanced level. After the renovation, the nitrogen oxides emission of each unit has been
reduced to below 15 mg/m3, reaching the most advanced level in the world, and Nanshan Thermal Power Station
has been selected as the best power station by Power Magazine, the most authoritative magazine in the global
electricity industry since 1882.
IV. Analysis of main businesses
I. Overview
In 2022, the 20th National Congress of the Communist Party of China was held, and it is also an extraordinary
year in the development of Shen Nan Dian. In the face of complex and severe external situations such as the
repeated Covid-19 epidemic, fierce competition in the electric power market, high fuel prices, and serious
inversion of power generation cost and selling price, the Company actively implemented the power supply
guarantee decision deployment, faithfully fulfilled the social responsibilities of power supply from a high political
position, ensured that unit should be fully developed, and has made outstanding contributions to the successful
convening of the “the 20th National Congress of the Communist Party of China”and to alleviating
the electricity shortage in Shenzhen, Guangdong Province. During the reporting period, the Company's Nanshan
Thermal Power Station and Zhongshan Nanlang Power Plant actually completed 858 million kWh of net energy
output, with an average annual utilization rate of 946 hours and an average annual plant electricity consumption
rate of 3.5% for the generating units of the two power stations. Medium and long-term contract electricity of
Nanshan Thermal Power Plant and Zhongshan Nanlang Power Plant in 2022, such as annual purchasing and
market electricity, totalled 1.441 billion kWh.
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During the reporting period, the main work carried out by the Company is as follows:
1. Safety and environmental protection met the standard, and won the gold medal for generator units. In 2022, the
Company paid close attention to the implementation of the main responsibility of work safety, promoted risk
grading and control and team safety construction, promoted the continuous improvement of standardization of
work safety, three-year action of special rectification of safety production, safety culture construction and other
special work, made every effort to solve all kinds of risks and hidden dangers, continuously strengthened the
foundation of work safety, fully completed the safety assessment indicators and the tasks of pollution reduction,
and continued to maintain a stable work safety situation and the “five-free”safety target. By December 31, 2022,
the Company had achieved 6,818 days of work safety accumulatively, without any environmental pollution
accident or any work safety liability accident. The Company's Nanshan Thermal Power Station has completed 800
million kWh of net energy output throughout the year without any unplanned outage caused by the unit. In the
annual selection of 47 power stations directly transferred by Shenzhen Power Grid, Nanshan Thermal Power
Station has won the honorary title of “Shenzhen Power Grid Advanced Power Generation Collective in 2022”
with excellent performance. The #10 and #11 units of the power station won the honorary title of “Shenzhen
Power Grid 2022 Annual Gold Generating Unit”.
2. Improve quality, reduce costs and increase the operating efficiency of power generation assets. Despite the
extremely unfavorable external environment, the Company tried its best to take effective measures to improve
economic efficiency. First, electricity marketing for efficiency. The Company observed the requirements of the
new spot trading model in the electric power market, dynamically adjusted its power marketing strategy, and
scientifically and reasonably implemented power trading. Nanshan Thermal Power Station has always been at the
leading level of similar power stations in the Shenzhen region in terms of annual average settlement of on-grid
electricity prices. Secondly, state-owned enterprises coordinate to reduce costs. The Company took the initiative
to strengthen the communication with upstream suppliers, strengthen the synergy of state-owned enterprises and
state-owned assets, broaden the fuel procurement channels, bring the advantages of group procurement into full
play, guarantee the matching of electricity generation gas and electricity, and reduce the fuel procurement cost.
Third, the implementation of compensation to reduce losses. Through channels such as the Guangdong Province
Electricity Industry Association's Special Committee on Combustion Engines, the Company actively reflected its
reasonable demands to the relevant government departments and made every effort to promote the introduction of
relevant policies. During the reporting period, the Company obtained annual contract cost relief compensation and
variable cost compensation, which reduced its main business losses. Fourthly, the Company closely tracked the
VAT retention tax refund policy and applied for a full refund of RMB 330 million of retained VAT credits, which
greatly eased the pressure on the Company's liquidity. Fifthly, the Company adjusted the financing and liquidity
management strategies at the right time to prevent investment and liquidity risks and optimize debt structure.
3. Optimize asset allocation, and explore the expansion and upgrading of stock business. Start the systematic
sorting of stock assets and comprehensive analysis of stock business, optimize asset allocation and carry out
business integration. Firstly, start the shutdown and decommissioning of two 9E gas turbines of Shen Nan Dian
Zhongshan Company, in order to revitalize assets, reduce losses and relieve financial pressure. Secondly,
concentrate the advantages of the Company's electricity technical talents, build an efficient maintenance business
integration platform, utilize the project development and management experience of Shen Nan Dian Engineering
Company to cultivate new profit growth points while striving to reduce the cost and increase the efficiency of the
stock business. Thirdly, we will speed up efforts to explore and make plans for virtual power stations, smart PV
and other frontiers. We will sign the Cooperation Agreement on Virtual Power Station Construction with the
Shenzhen Virtual Power Station Management Center, and establish cooperative relations in deepening the
development of the Shenzhen virtual power station comprehensive demonstration projects to seek opportunities in
the visual power station business. The fourth is to rely on the strong support of shareholders, actively conduct
investment and merger, seek project opportunities, and explore new paths of transformation and development.
4. Improve the management mechanism and enhance the Company's internal development momentum. With the
goal of improving the Company's standardized and refined management level and strengthening the Company's
internal management, the first is to vigorously promote the construction of institutional systems, optimize
management processes, and improve the standardization level of investment, procurement, finance, human
resources and administrative logistics management. Meanwhile, the compliance system construction will be
launched in an all-round way, and the foundation of normative development of the Company will be consolidated
through the compliance system construction. Secondly, optimize the organizational structure, strengthen the
construction of talent team, and strengthen cadre management and assessment. At the same time, the work of
determining posts and staffing will be started, and a system of division of duties will be formed in which
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personnel and posts will be matched, and each will assume its own responsibilities and fulfill its own duties
through a comprehensive review of organizational structure, post responsibilities and staffing. Thirdly, construct
the concept of performance-oriented assessment, and explore the market-oriented incentive mechanism. Optimize
the salary distribution principle based on the assessment, improve schemes and measures for the performance
assessment, and establish a results-oriented performance assessment and incentive mechanism. At the same time,
explore the employee co-investment mechanism to stimulate the team's innovation vitality and combat
effectiveness through benefit sharing and risk sharing.
5. Anchor the transformation route and accelerate the transformation and upgrade of business. During the
reporting period, the Company initiated the preparation of the “14th Five-Year Plan” based on the latest national
industrial policy guidance and the actual situation of the Company, and clarified the strategic direction and path of
the Company. We have clearly defined the strategic direction and path of focusing on the new energy industry,
stimulating the vitality of stock assets through technological innovation and industrial upgrading, and seeking the
driving force for sustained development through high-quality projects in the new energy field. Strive to promote
the transformation and upgrading of the Company in the wave of reform of electricity market, new energy and
energy storage industry development.
In 2022, the operating income of the Company was RMB 694 million. The net profit attributable to shareholders
of the listed company was RMB -160 million and the basic earnings per share was RMB -0.2657.
II. Income and cost
(1) Composition of the operating income
Unit: RMB
2022 2021
Increase/decrease
Ratio in Ratio in YoY
Amount Amount
operating income operating income
Total operating
694,227,657.28 100% 757,175,743.41 100% -8.31%
income
By industry
Energy industry 650,670,587.61 93.73% 708,883,313.18 93.62% -8.21%
Engineering
41,945,102.65 6.04% 43,685,185.43 5.77% -3.98%
service
Sludge drying 0.00 0.00% 3,388,263.75 0.45% -100.00%
Others 1,611,967.02 0.23% 1,218,981.05 0.16% 32.24%
By product
Sales of
650,670,587.61 93.73% 708,883,313.18 93.62% -8.21%
electricity
Engineering
41,945,102.65 6.04% 43,685,185.43 5.77% -3.98%
service
Sludge drying 0.00 0.00% 3,388,263.75 0.45% -100.00%
Others 1,611,967.02 0.23% 1,218,981.05 0.16% 32.24%
By region
Domestic 694,227,657.28 100.00% 757,175,743.41 100.00% -8.31%
Sales model
Direct sales 694,227,657.28 100.00% 757,175,743.41 100.00% -8.31%
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(2) The industries, products, regions or sales model accounting for over 10% of the Company’s operating
revenue or operating profit
Applicable □Not applicable
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.
Unit: RMB
Increase or Increase or
Increase or
decrease in decrease in
Operating decrease in
Operating costs Gross margin operating gross profit
income operating costs
income year- margin year-
year-on-year
on-year on-year
By product
Sales of
650,670,587.61 779,733,245.77 -19.84% -8.21% -4.48% -4.69%
electricity
By region
Domestic 694,227,657.28 804,679,323.48 -15.91% -8.31% -5.36% -3.62%
Reasons for great changes in relevant financial indicators
□Applicable Not applicable
(3) Income from physical sales larger than income from labors
Yes □ No
Industry Increase/decrease
Item Unit 2022 2021
classification YoY
Sales volume 100 million kWh 8.58 11.44 -25.00%
Electricity Output 100 million kWh 8.60 11.48 -25.09%
Inventory 100 million kWh 0.00 0.00 0.00%
Reasons for a y-o-y changes of 30% or more in relevant data
□Applicable Not applicable
(4) Performance of major sales contracts and major procurement contracts signed by the Company up to
the reporting period
□Applicable Not applicable
(5) Composition of operating costs
Industry and product classification
Unit: RMB
Increase/decrease
2022 2021
YoY
Industry Shared Shared
Item
classification percentage percentage of
Amount Amount
of operating operating
costs costs
Energy Electricity 779,733,245.77 96.90% 816,273,176.20 96.00% -4.48%
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industry
Engineering Engineering
24,687,143.61 3.07% 28,002,979.56 3.29% -11.84%
service cost
Sludge Sludge
5,414,557.67 0.64% -100.00%
drying treatment
Depreciation
Other of investment 258,934.10 0.03% 569,945.97 0.07% -54.47%
property
Unit: RMB
Increase/decrease
2022 2021
YoY
Product Shared
Item Shared
category percentage
percentage of
Amount of Amount
operating
operating
costs
costs
Sales of
Power supply 779,733,245.77 96.90% 816,273,176.20 96.00% -4.48%
electricity
Engineering Engineering
24,687,143.61 3.07% 28,002,979.56 3.29% -11.84%
service cost
Sludge
Sludge drying 5,414,557.67 0.64% -100.00%
treatment
Description
The main component of the Company's operating cost is natural gas, and the Company's natural gas cost will
account for 82.17% of the operating cost in 2022; In 2021, the Company's natural gas costs accounted for 77.37%
of the operating costs.
(6) Changes in the scope of consolidation in Reporting Period
□ Yes No
(7) Major changes or adjustment in business, product or service of the Company in Reporting Period
□Applicable Not applicable
(8) Main sales clients and main suppliers
Main sales clients of the Company
Total top five clients in sales (RMB) 692,413,282.42
Proportion in total annual sales volume for top five
99.74%
clients
Ratio of sales from related parties to total annual sales
0.00%
among the top five customers
Information of top five clients of the Company
Proportion in total annual
No. Name Sales (RMB)
sales
Shenzhen Power Supply Bureau
1 632,065,666.91 91.05%
Co., Ltd.
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China Machinery Engineering
2 35,820,448.07 5.16%
Corporation
3 Guangdong Power Grid Co., Ltd. 18,619,522.44 2.68%
Sinohydro Engineering Bureau 8
4 3,030,645.00 0.44%
Co., Ltd.
POWERCHINA Hubei Electric
5 2,877,000.00 0.41%
Power Construction Co., Ltd.
Total -- 692,413,282.42 99.74%
Other information of main clients
□Applicable Not applicable
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 740,818,393.99
Proportion in total annual purchase amount for top five
95.97%
suppliers
Ratio of related party purchases among the top five
0.00%
suppliers' purchases to total annual purchases
Information of top 5 suppliers of the Company
Proportion in total annual
No. Name Purchase amount (RMB)
purchases
1 Shenzhen Gas Group Co., Ltd. 603,204,670.45 78.14%
Guangdong Branch of CNOOC Gas
2 107,758,470.83 13.96%
Power Group Co., Ltd.
Shenzhen Power Supply Bureau
3 18,388,325.37 2.38%
Co., Ltd.
Shenyang LSE Power Service Co.,
4 6,090,561.29 0.79%
Ltd.
5 Shenzhen Water (Group) Co., Ltd. 5,376,366.05 0.70%
Total -- 740,818,393.99 95.97%
Other information of main suppliers
□Applicable Not applicable
3. Expenses
Unit: RMB
Increase/decrease
2022 2021 Notes to significant changes
YoY
The decrease was mainly due to
the decrease in sales
development demand due to the
Selling and
375,055.78 928,661.79 -59.61% re-routing of municipal sludge
distribution expenses
treatment
environmental protection
business.
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Mainly due to decrease in labor
G&A expenses 79,099,350.54 103,286,926.69 -23.42%
costs and intermediary fees
Mainly due to the increase in the
Financial expenses 32,142,802.50 15,212,737.67 111.29%
average annual financing scale
Mainly due to the increase in
R&D expenses 25,647,534.39 20,933,712.98 22.52% R&D expenses of Shen Nan Dian
Engineering Company
4. R&D input
Applicable □Not applicable
Expected impact on
the future
Projects Purpose Progress Goals to be achieved
development of the
Company
AGC control strategy of
existing gas-steam combined
cycle units generally adopt
power control mode. Power
Improve the
closed-loop control is used in
timeliness and
the control system of the units.
accuracy of power
When the units are put into
generation,
Research and primary frequency modulation
effectively enhance
development of AGC and AGC function, the
safety productivity,
control technology direction of load command
Completed and improve the
for combined cycle change of AGC is inconsistent
technological content
unit of PG9171E gas with that of load command
and core
turbine change required by primary
competitiveness of
frequency modulation.
the Company's
Through research and
products and
development, we can solve the
services.
above problems and improve
the timeliness and accuracy of
the unit's response to the load
change.
Improve the
performance, safety
and reliability of the
By adding a set of standby fan,
Research and equipment, and
upgrading the control program
Development on improve the
and HMI screen, the fan has
Operation Reliability Completed technological content
the functions of pre-selection,
of Gas Turbine Main and core
manual switchover and on-line
Lubricating Tank Fan competitiveness of
automatic switchover.
the Company's
products and
services.
Research and Domestic technology research Optimize and
Development of on hot air system of gas turbine improve the
Domestic seal bus is carried out to performance, safety
Technology for Hot eliminate system defects and Completed reliability and
Air System of Gas faults, improve equipment economy of the
Turbine Enclosed operation reliability, equipment, and
Busbar concurrently reduce personnel enhance the
inspection, operation and technological content
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maintenance workload, and and core
save costs. competitiveness of
the Company's
products and
services.
With the upgrading of power
generation equipment, the State
Grid has increasingly raised Deeply study and
technical requirements for the improve the
performance of power performance of the
Research and generation equipment, and the equipment, improve
development on relevant parameters of the the efficiency of the
technical upgrading original excitation equipment operation, and
of excitation devices cannot meet the requirements Completed improve the
for steam combined of the current State Grid. technological content
cycle power Through technological and core
generation units upgrading research and competitiveness of
development, improve the the Company's
performance of the excitation products and
device and meet the services.
requirements of the national
grid.
Deeply study the
operating
Through the stable balance
mechanism, optimize
adjustment of the cooling air of
and improve the
the gas turbine cylinder block,
control mode,
the improvement and
Research and improve the
modification of the control
development of operation safety and
program and the reasonable
cooling air stability Completed reliability, and
adjustment of the wind
of PG9171E gas improve the
direction measurement position
engine cylinder block technological content
and measurement method, the
and core
stability of the cooling air of
competitiveness of
the gas turbine cylinder block
the Company's
is improved.
products and
services.
The long running time of drain
flash tank of steam turbine unit
leads to failure to completely
deal with the gas etching and
flashing and other defects in
Develop new
the system, which also leads
technologies actively
Research and to obvious noise pollution from
to reduce the adverse
development of the the flash tank during startup
impact of operation
reliability of drain and stop of the unit. In order to
Completed and improve the core
flash tank for steam eliminate the above undesirable
competitiveness and
turbine of combined effect, research and
technology content of
circulator unit development of the reliability
the Company product
of drain flash tank has been
and service.
conducted, which effectively
reduces noise, as well as
adverse effect made on
environment by equipment
running.
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The black start energy storage
system, as the power supply
point of a power plant during Improve economic
Research and black start, is usually in a efficiency, assist in
Development of standby state. By adding new the "dual carbon"
Demand Side devices and technical goal, and enhance the
Response modifications, it adjusts the Completed technological content
Technology for Black structure of auxiliary power, and core
Start Energy Storage achieves the function of grid competitiveness of
System demand side response, the company's
improves economic efficiency, products and services
and assists in the "dual carbon"
goal.
Through equipment
modification of the existing Optimize and
traditional waste heat boiler improve equipment
Technical Research condensate heater, a performance,
and Development on condensate heater recirculation improve equipment
Reducing Corrosion pump and system equipment operation safety and
of the Tail Heating are installed to improve the reliability, and
Completed
Surface of the Waste inlet water temperature of the enhance the
Heat Boiler in Steam condensate heater above the technological content
Combined Cycle dew point temperature of the and core
Units existing waste heat boiler, and competitiveness of
to prevent condensation and the company's
corrosion on the surface of the products and services
tail heat exchanger.
With the implementation of the
grid spot market policy and the
continuous improvement of the
penetration rate of new energy,
the demand for frequency
modulation mileage in the grid
will significantly increase, and
the demand for frequency
modulation units to participate It improves the safety
in AGC response will also of unit operation
Research and
increase; The energy storage adjustment, brings
Development of
auxiliary frequency modulation economic benefits to
Energy Storage
system can accurately respond the unit, and
Assisted Frequency
to power frequency Completed enhances the
Modulation
modulation, solving the technological content
Technology for
shortcomings of traditional and core
Combined Cycle
units such as slow regulation competitiveness of
Units
speed, turnback delay, and the company's
large errors. It can also enable products and services
the generator unit to maintain
stable operation while
significantly improving
frequency modulation
performance, improving the
safety of unit operation
adjustment, and bringing
economic benefits to the unit.
R&D personnel
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2022 2021 Change proportion
Number of R&D personnel
71 72 -1.39%
(person)
Proportion of R&D
18.59% 18.37% 0.22%
personnel
Educational background
Bachelor 34 32 6.25%
Master 1 2 50.00%
Others 36 38 -5.26%
Age composition
Under 30 6 5 20.00%
30-40 8 15 -46.67%
Over 40 57 52 9.62%
R&D input
2022 2021 Change proportion
Amount of R&D input (RMB) 25,647,534.39 20,933,712.98 22.52%
Ratio of R&D input to
3.69% 2.76% 0.93%
operating income
Capitalization amount of R&D
0.00 0.00 0.00%
input (RMB)
Ratio of capitalized R&D
0.00% 0.00% 0.00%
input to R&D input
Reasons for and effects of significant changes in R&D personnel composition of the Company
□Applicable Not applicable
Reasons for significant changes in the proportion of total R&D input in operating income compared to last year
□Applicable Not applicable
Reasons and their reasonableness statement for significant changes in the capitalization rate of R&D input
□Applicable Not applicable
V. Cash flows
Unit: RMB
Item 2022 2021 Increase/decrease YoY
Sub-total of cash inflows
1,141,649,432.06 915,970,557.14 24.64%
from operating activities
Sub-total of cash
outflows from operating 934,481,029.80 955,228,859.21 -2.17%
activities
Net cash flows from
207,168,402.26 -39,258,302.07 627.71%
operating activities
Sub-total of cash inflows 178,535,035.18 85,113,274.87 109.76%
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from investing activities
Sub-total of cash outflows
283,315,286.80 246,736,667.99 14.82%
from investing activities
Net cash flows from
-104,780,251.62 -161,623,393.12 35.17%
investing activities
Sub-total of cash inflows
1,089,969,316.66 1,061,074,323.80 2.72%
from financing activities
Sub-total of cash outflows
1,234,410,158.23 935,063,124.20 32.01%
from financing activities
Net cash flows from
-144,440,841.57 126,011,199.60 -214.63%
financing activities
Net increase in cash and
-41,582,961.53 -74,996,638.62 44.55%
cash equivalents
Description of main factors affecting significant year-on-year changes in relevant data
Applicable □Not applicable
1. The net cash flows from operating activities increased by 627.71% year on year, mainly due to the VAT refund
of RMB 330 million received;
2. The cash inflow from investing activities increased by 109.76% year on year, mainly due to the increase in the
recovery of wealth management products;
The net cash flows from investing activities increased by 35.17% year on year, mainly due to the increase in net
withdrawal of financial products;
4. Cash outflows from the financing activities increased by 32.01% year on year, mainly due to the increase in
repayment of bank loans.
5. The net cash flows from financing activities decreased by 214.63% year on year, mainly due to the increase in
repayment of financing.
6.The net increase in cash and cash equivalents increased by 44.55% year on year, mainly due to the net increase
in cash from operating activities and investing activities greater than the net decrease in cash from financing
activities.
Explanation of the reasons for the significant difference between the net cash flow from operating activities and
the net profit for the year of the Company during the reporting period
Applicable □Not applicable
During the year, the Company received RMB 330 million in retained VAT refunds.
V. Analysis of non-main businesses
Applicable □Not applicable
Unit: RMB
Whether it is
Amount Ratio in total profit Reasons
sustainable
Mainly financial
Investment income 70,717,321.61 -38.10% No
income
Provision for fixed
Asset impairment 8,946,433.92 4.82% assets, inventory No
falling price reserves
and provision for
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impairment of
projects under
construction of this
year
Received the
Non-operating epidemic prevention
39,600.00 -0.02% No
income and disinfection
subsidies
Mainly losses on
Non-operating
2,191,784.23 1.18% write-off of fixed No
expenses
assets
VI. Analysis of assets and liabilities
1. Significant changes in the composition of assets
Unit: RMB
Increase/decrease Notes to significant
End of 2022 Early 2022
in proportion changes
Ratio in Ratio in
Amount total Amount total
assets assets
Cash and cash
675,496,266.40 25.92% 689,604,633.59 24.72% 1.20%
equivalents
Accounts
135,833,492.64 5.21% 73,610,161.02 2.64% 2.57%
receivable
Contract
217,009.58 0.01% 1,040,000.00 0.04% -0.03%
assets
Inventories 85,279,298.35 3.27% 88,500,991.13 3.17% 0.10%
Investment
1,833,344.20 0.07% 2,009,051.80 0.07% 0.00%
properties
Long-term
equity 83,496,098.24 3.20% 6,986,655.19 0.25% 2.95%
investments
Fixed assets 591,290,204.31 22.69% 643,256,398.30 23.06% -0.37%
Construction
4,861,062.16 0.19% 6,088,768.51 0.22% -0.03%
in process
Right-of-use
7,707,617.90 0.30% 0.00 0.00% 0.30%
assets
Short-term
879,957,857.44 33.76% 858,444,163.25 30.77% 2.99%
borrowings
Long-term
28,019,758.68 1.08% 0.00 0.00% 1.08%
borrowings
Lease
2,262,160.03 0.09% 0.00 0.00% 0.09%
liabilities
Financial Mainly due to the
assets held for 440,013,571.10 16.88% 632,874,406.39 22.68% -5.80% decrease in
trading purchase of
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financial products
Other current
188,248,840.44 7.22% 331,868,661.62 11.89% -4.67%
assets
Other
investments in
300,615,000.00 11.53% 200,615,000.00 7.19% 4.34%
equity
instruments
Other
22,997,466.80 0.88% 62,678,254.02 2.25% -1.37%
payables
High proportion of overseas assets
□Applicable Not applicable
2. Assets and liabilities measured in fair value
Applicable □Not applicable
Unit: RMB
Changes
in fair
Cumulative Purchase Sales
value Impairment
changes in amount amount
Opening profit accrued in Other
Item fair value in the in the Ending balance
balance and loss the current changes
included in current current
in period
equity period period
current
period
Financial assets
1. Financial
assets held
for trading
119,987, 72,873,68
(excluding 632,874,406.39 440,013,571.10
155.29 0.00
derivative
financial
assets)
2.
Derivative
0.00 0.00
financial
assets
3. Other
creditors' 0.00 0.00
investments
4. Other
investments 100,000,
200,615,000.00 300,615,000.00
in equity 000.00
instruments
100,000, 119,987, 72,873,68
Total 833,489,406.39 740,628,571.10
000.00 155.29 0.00
Financial
0.00 0.00 0.00 0.00 0.00
liabilities
Contents of other changes
26
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
The accounting method of investment for Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. in the
current year is changed from financial assets held for trading to long-term equity investments by accounting by
equity method.
Whether there are significant changes in the measurement attributes of the Company's main assets during the
reporting period
□ Yes No
3. Restrictions on asset rights as at the end of the reporting period
Item Ending balance Balance at the end of last year
Margin of bank acceptance bills 27,474,594.34
Total 27,474,594.34
VII. Analysis of investment
1. Overall situation
Applicable □Not applicable
Investment amount during the Investment amount in the same
Changes (+,-)
reporting period (RMB) period last year (RMB)
100,000,000.00 191,831,197.00 -47.87%
2. Significant equity investments acquired during the reporting period
Applicable □Not applicable
Unit: RMB
Progr Curre With
Date
ess as nt laws
Name Form Cap Tim Expe of Disclos
Main Investm Shareh Produ on the invest uit
of the of ital e cted discl ure
busin ent olding Partner ct balan ment invo
invest invest sou hori earni osure index (if
ess amount ratio type ce profit lved
ee ment rce zon ngs (if any)
sheet and (Y/
any)
date loss N)
Shenz Shenzh Announ
hen en cement
Yuanz Capital name:
hi Holdin Announ
Ruixin gs Co., cement
New Ltd., on
Comp
Gener Shenzh Investm
leted
ation en ent in
invest
IT Newl Ow Luohu Limit
Invest Six ment Not Marc Shenzhe
Privat ment y 100,000, 20.00 n Guidan
year
ed
of appli 0.00 No h 7, n
e establ 000.00 % fun ce partne
fund s. RMB cable 2020 Yuanzhi
Equity ished d Fund rship Ruixin
100
Invest Invest New
millio
ment ment Generati
n
Fund Co., on IT
Partne Ltd., Private
rship Shenzh Equity
(Limit en Investm
ed Kunpe ent and
Partne ng Related
27
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
rship) Equity Transact
Invest ion;
ment Announ
Manag cement
ement No.:
Co., 2020-
Ltd., 007;
Shenzh Disclos
en ure
Yuanz media:
hi China
Ruixin Securiti
Equity es
Invest Journal,
ment Securiti
Manag es
ement Times,
Co., Hong
Ltd. Kong
Commer
cial
Daily
and
CNINF.
100,000,
Total -- -- -- -- -- -- -- -- -- 0.00 -- -- --
000.00
3. Ongoing significant non-equity investments during the reporting period
□Applicable Not applicable
4. Investment in financial assets
(1) Securities investment
□Applicable Not applicable
The Company had no securities investments during the reporting period.
(2) Investment in derivatives
□Applicable Not applicable
The Company had no derivative investment during the reporting period.
5. Usage of the funds raised
□Applicable Not applicable
There was no use of capitals raised during the reporting period.
VIII. Sales of major assets and equities
1. Sales of major assets
□Applicable Not applicable
The Company did not sell major assets during the reporting period.
2. Sales of major equities
□Applicable Not applicable
28
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
IX. Analysis of major controlling and joint-stock companies
Applicable □Not applicable
The condition of subsidiaries or joint-stock companies that affect more than 10% of the net profit of the Company
Unit: RMB
Registered Operating
Name Type Main business Total assets Net assets Operation profit Net profit
capital income
Technology
development of
waste heat
utilization
(excluding
Shenzhen restricted
New Power projects): RMB 113.85
Subsidiaries 715,010,322.24 27,354,830.01 300,390,194.33 -68,030,052.57 -68,033,560.57
Industrial power million
Co., Ltd. generation by
waste heat
utilization;
Power
generation by
gas turbine.
Lease of gas
turbine power
generation,
waste heat
power
generation,
power supply
and heating
(excluding
heating
Shen Nan
network),
Dian
wharfs, depots
(Zhongshan) RMB
Subsidiaries (excluding 259,825,639.14 -500,798,349.77 18,619,522.44 -110,841,787.19 -111,394,129.17
Electric 746.8 million
refined
Power Co.,
products,
Ltd.
hazardous
chemicals,
inflammables
and explosives)
and electricity
facilities; Lease
of land use
right; Lease of
nonresidential
real estate.
Acquisition and disposal of subsidiaries during the reporting period
□Applicable Not applicable
Information of main holding and joint stock companies
X. Structured entities controlled by the Company
□Applicable Not applicable
XI. Prospects for the Company's future development
(I) Analysis of the Company's operating situation in 2023
In 2023, the Company will still face a complex operating situation in terms of production and operation. First, the
price of natural gas will still run at a high level. Although the impact of the Russian-Ukraine war on the energy
market will gradually weaken, and it is expected that natural gas purchase cost of the Company in 2023 may
decrease compared to 2022. However, given the current high price level of international energy, the overall price
level of natural gas is still not optimistic. Second, the Company's responsibility to ensure power supply remains
arduous. China's economic performance is expected to pick up in 2023, according to the Analysis and Forecast
Report on the National Power Supply and Demand Situation in 2023 released by the China Electricity Council.
For Guangdong Province, the maximum load is expected to be 155 million kW in 2023, with a year-on-year
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Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
growth of 8.8%. Social electricity consumption is 825 billion kWh, with a year-on-year growth of 5.2%. The
newly installed capacity of 17 million kW in Guangdong Province is expected to be tight and balanced. During
the kurtosis summer and winter, the situation of power supply and demand will be tight in the southern region.
The company still shoulders the responsibility and pressure to keep the power supply. Third, the electricity
marketing market competition is still fierce. After Guangdong Province fully enters the trial operation of the
electricity spot market, due to system design reasons, it is difficult to truly implement policies such as “gas-
electricity linkage” and two-part electricity pricing in the short term. The continuously high fuel cost of gas-fired
power generation companies cannot be effectively transmitted downstream, resulting in the inversion of power
generation income, and power generation cost will still be the norm. The average energy consumption of the
Company's owned 9E combustion turbines is more than 10% higher than that of the 9F and 9H units, making even
more losses in the increasingly competitive electricity spot market.
In the face of pressures and challenges, the Company strives to seek new opportunities under the situation of high-
quality development. In order to encourage the development of the energy storage industry under the goals of
“carbon peaking and carbon neutrality”， the Guiding Opinions on Accelerating the Development of New Energy
Storage issued by the National Development and Reform Commission and the National Energy Administration
specify that by 2025, new energy storage will be transformed from the initial stage of commercialization to large-
scale development; By 2030, the comprehensive marketization of new energy storage will be realized. According
to Guangdong Province's 14th Five-Year Plan, more than 2 million kW of the power generation side, power
transformation side, user side and independent frequency modulation energy storage will be built by 2025, and the
electricity's demand-side response capacity will reach about 5% of the maximum load by 2025. The Notice of the
General Office of the People's Government of Guangdong Province on Printing and Distributing the Guiding
Opinions on Promoting the High Quality Development of New Energy Storage Industry in Guangdong Province
and Several Measures of Shenzhen to Support the Accelerated Development of Electrochemical Energy Storage
Industry issued in 2023 also make it clear that it will vigorously support the development of the energy storage
industry. At present, the Company is implementing independent energy storage, construction, transportation,
management and maintenance smart platform. The PV and other new energy industry upgrading projects are in
line with the latest national and provincial and municipal policy guidance. The company will seize the great
historical opportunity of the leap-forward development of new energy, change from the passive survival to an
active development, and spare no pains to promote the Company's high-quality development
(II) Summary of the Company's Business Plan for 2023
2023 is the first year to fully implement the Party's spirit of the 20th National Congress of the Communist Party of
China, and high-quality development is the top priority for building a modern socialist country in an all-round
way. The Company still faces great challenges on operation and development, such as fierce competition in the
electric power market, high natural gas prices, inversion of power generation cost and electricity prices, and
increasing contradiction between supply and demand. In the face of severe external environment, the Company,
aiming at promoting its high-quality development, deployed the overall work idea of 2023 with one core, two
objectives, three foundations and six special action plans. The Company will lead all employees to closely focus
on six special action plans, face challenges, work hard, and strive to create a new situation of turnaround, strategic
transformation and high-quality development.
1. Adhere to the bottom line of safety and complete the power supply guarantee task with high standard. Firstly,
firmly establish the concept of “safe development”, adhere to the people's supremacy and life's supremacy, and
consolidate the foundation of enterprise development. Vigorously promote the continuous improvement of
hierarchical risk management and control, team safety construction and standardization of work safety, focus on
strengthening equipment and facilities management and operation process control management, effectively carry
out the “three simultaneous” work of safety facilities from design, construction to production and operation of
new projects of the Company's transformation and development, fully implement the main responsibility system
for work safety and the responsibility system for work safety of all employees, effectively prevent safety risks,
and ensure the all-round “great safety” of the Company. Secondly, the task of protecting power supply to a high
standard shall be fulfilled and the concept of ecological development shall be practiced. Raise political sense,
perform the social responsibilities of state-owned enterprises, spare no effort to ensure the safety of power supply
during major events and important periods, strictly implement various energy-saving and emission reduction
measures, and ensure the normal operation of environmental protection facilities and equipment. While ensuring
the discharge of various pollutants up to the standards, the level of energy consumption in production shall be
constantly reduced, and the goal of “double carbon” shall be achieved.
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Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
2. Based on stock assets, make every effort to reduce losses and increase profits. Activate stock resources, deeply
tap potentialities, and consolidate the foundation for transformation and upgrade. First, Shen Nan Dian Zhongshan
Company will actively seek the support of government functional departments on the basis of the application for
shutdown and decommissioning to be submitted in 2022 and strive to complete the suspension and withdrawal of
unit as soon as possible. Based on the advantages of land resources, carry out the follow-up transformation work,
and provide support for the Company's strategic focus and expansion of new business areas. Second, Shen Nan
Dian Engineering Company to strengthen the collection of accounts receivable, continue to explore and seize
domestic and foreign markets, and actively develop new gas turbine projects; At the same time, the Company
shall give full play to the talent advantage after the integration of overhaul business, and constantly develop the
external electricity overhaul market. Thirdly, Shen Nan Dian Environment Protection Company takes advantages
of its existing skills and talents to explore the establishment of a power distribution company to participate in the
trade in electric power market, and actively promote the construction of a data center and the preliminary work of
the virtual power station, aiming at the integration of source network, charge and storage to build a comprehensive
energy service provider. Fourthly, Server Company will make full use of the depot resources, actively revitalize
the assets of the depot, seek business opportunities, and continue to promote the reconstruction of Huidong Server
docks in order to achieve the appreciation and efficiency enhancement of the stock assets. Fifthly, keep close eye
on the market, explore channels and reduce natural gas purchase cost. Continue to optimize our upstream
cooperation and take advantage of the price differentials of different gas sources to control natural gas purchase
cost and match gas and electricity while ensure the supply of manufacturing gas requirement. Sixthly, strive for
policy support. We will pay close attention to the policy orientation, actively report the difficulties to the
government, raise reasonable demands, promote the implementation of relevant subsidies, and strive to improve
the Company's electricity business.
3. Firmly plan strategic layout, and introduce increment to realize transformation and upgrade. Strengthen
strategic guidance, and unswervingly persist in transformation and development. The first is to further improve
the strategy and implementation path, plan actively around the new energy and energy storage industry chain,
complete the preparation of the 14th Five-Year Plan, and form a forward-looking and feasible development plan
with accurate positioning, reasonable objectives, clear path, and comprehensive guidance, which leads the next
phase of the Company's transformation. The second is to make full use of the platforms of the listed company, go
deep into new energy, energy storage and other key industries, vigorously carry out mergers and acquisitions, and
promote the implementation of key projects. The third is to give full play to the Company's own advantages,
expand and upgrade the existing business, and promote transformation and development with industrial upgrading:
make full use of the power point advantages of Nanshan Thermal Power Station, and actively promote the
construction of the first phase of the independent energy storage power station project; Continuously promote the
implementation of “construction, operation, management and maintenance” intelligent platform projects;
Accelerate the completion of the construction of smart PV projects, and strive for early production and income
generation; We will explore the new energy of integrated new energy power stations, distributed data centers, on-
line monitoring of energy storage power stations, and virtual power station platforms.
4. Deepen standardized operation and improve the quality of corporate governance. Vigorously promote the
construction of corporate governance system, compliance system and management system, and establish and
improve a standardized management system that complies with laws and regulations, is scientific and rigorous,
efficient and orderly. The first is to optimize the corporate governance system. In accordance with regulatory
regulations and relevant requirements of state-owned and state-owned enterprises, strengthen the construction of
the Company's legal person governance system, further improve the Company's legal
person governance system and process, clarify corporate governance responsibilities, adhere to the rule of law,
standardize operations, and improve the Company's legal person governance level. Secondly, promote
the compliance system construction. According to the implementation plan of the Company's compliance system
construction, we will build a full-coverage and full-chain compliance management system with standardized
system in advance, dynamic supervision during the event and post supervision accountability, so as to effectively
prevent compliance risks and ensure the Company's sustainable development. Thirdly, strengthen implementation
and supervision. Continuously sort out, revise and improve the management systems of the Company, standardize
internal management, and strengthen the inspection and assessment of the implementation of the systems, so as to
comprehensively improve the quality and level of management.
5. Build a solid foundation for the Party's construction and open up a new situation for the Party's construction.
The Company will unswervingly take the study and implementation of Xi Jinping Thought on Socialism with
Chinese Characteristics for a New Era as the primary political task, continue to study and implement the spirit of
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Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
the 20th National Congress of the Communist Party of China and the spirit of the series of important speeches of
General Secretary Xi Jinping, focus closely on the overall situation of production and operation development of
the Company, firmly establish the work orientation of “focusing on party building and doing a good job of party
building to promote operation”, take party building and joint construction as the starting point, and promote the
“double integration and double promotion” of party building and business. The Company will firmly maintain the
authority of the Party, take improving enterprise efficiency and enhancing enterprise competitiveness as the
starting point and foothold of the Party's organizational work, closely focus on the work goal of production and
operation with transformation and development led by the Party's construction, promote the implementation of the
Party's leadership in all aspects from corporate governance to operation and development, effectively form a new
work pattern of “complementing the advantages of Party's construction, and coordinating and interacting with
business”, and strive to empower the Company with high-quality transformation and development through high-
quality Party's construction.
The business plan and relevant situation analysis set forth in this annual report do not constitute the Company's
performance commitment to investors. The Company reminds investors to maintain due risk awareness,
understand the difference between the business plan and performance commitment, and make prudent investment
decisions.
(III) Possible main risks and countermeasures
1. Main business: Since 2022, affected by multiple factors, two power stations under the Company experienced
tremendous pressure from rising fuel prices and lagging unit energy efficiency. With the continuous promotion
and deepening of market-oriented transaction of Guangdong Province power market, 9E unit is facing difficulties
in profiting under the pressure of competition with more efficient and lower-cost units, and the situation of main
business operation of the Company will be more severe. By continuously strengthening the management of the
stock assets, the Company will actively respond to the demands and changes of the electric power market and try
its best to improve the profitability of its main business and the overall operating efficiency. At the same time, the
Company will focus on the new energy industry chain and actively explore diversified business models and
opportunities to transform itself from a traditional power generator to a comprehensive energy service provider to
create better conditions for the continuing operation and healthy development of the Company.
2. Under the market-oriented electricity generation model, power stations will face more flexible scheduling and
stricter assessment, which will put forward higher demands on the operation and maintenance of the aging power
plants. The Company will, through the formulation of scientific and reasonable overhaul and technical
transformation plans, invest corresponding funds and technical forces, continuously improve the level of
equipment maintenance and governance, implement the main responsibility of safety production, and ensure the
safe and stable operation of production facilities; At the same time, it will further strengthen training and
emergency capacity building, achieve the “five in place”of work safety responsibility, management, investment,
training and emergency rescue, ensure that no human-induced work safety accidents occur within the Company's
system, and continue to play a supporting role of the main peak-shaving power point.
3. Procurement of fuel: In 2023, the purchase price of fuel will mainly depend on the development of the
international market and the selling prices of existing suppliers. Although the impact of the Russia-Ukraine war
on the energy market will gradually abate, major economies in Europe and Asia have taken a variety of measures
in the past year to cope with the shortage of energy supply, in view of the current high price of international
energy and the expected increase in consumption after China fully liberalized the epidemic control and prevention,
it is estimated that the Company's natural gas purchase cost in 2023 may be lower than that in 2022. But the
overall price level is still not optimistic. In addition, due to the marketization of the electricity trading in
Guangdong Province, the Company's planned energy output cannot match with the actual energy output, and the
planned purchase amount of natural gas cannot match with the actual consumption amount to meet the balance
between supply and demand. Due to the fact that the natural gas procurement contract must be signed in advance,
the proposed procurement of the contracted quantity has been basically determined at the time of contract signing.
If the gas cannot be delivered as agreed due to factors such as the marketization of electricity trading during the
contract period, there may be risks related to under drawn or over drawn of the contracted quantity. The Company
will continue to optimize our upstream partnerships and make full use of multiple sources of gas to reduce natural
gas purchase cost while ensuring electricity generation demand.
The Company reminds investors to pay attention to the above major risks and other risks that the Company may
face, and prudently make rational investment decisions.
32
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
XII. Reception of research, communication and interview during the reporting period
Applicable □Not applicable
Main contents Index of basic
Type of
Time Location Method Object discussed and information of
object
materials provided the research
The Company
Attending the general carries out
January - Office of the
Individual meeting and inquiring reception
December Company's Field research Individual
(8 persons) the register of according to
2022 headquarters
members, etc. laws and
regulations
To inquire about the
number of
shareholders, the
Company's future
development The Company
January - Individual
Interactive direction, the progress replied in
December Written inquiry Individual (77
platform of the Company's writing in a
2022 persons)
investment matters, timely manner
and matters related to
the land of Nanshan
Thermal Power
Station, etc.
To inquire about the
Company's The company
performance, market replied in
January -
Telephone Telephone Individual performance, land- accordance
December Individual
communication communication (44 times) related matters and with the laws
2022
the progress of the and
Nanshan Thermal regulations
Power Station.
33
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
Section IV Corporate Governance
I. Basic conditions of the corporate governance
In accordance with the Company Law, Securities Law, Listed Company Governance Guidelines, Stock Listing
Rules and the Articles of Association, the Company continued to improve the corporate governance structure,
improve the modern corporate management system, enhance the standardized governance and fine governance,
and effectively safeguard the legitimate equity of listed company, investors and employees.
1. General meeting of shareholders: The Company convenes a general meeting of shareholders in strict
accordance with legal procedures to ensure that shareholders exercise their rights in accordance with the law.
During the reporting period, the Company convened one regular meeting and two extraordinary meetings of the
shareholders' general meeting to carefully study and deliberate the major issues to be decided at the general
meeting. The convening, convening procedures, qualifications of the attendees and conveners, voting procedures
and voting results of the Company's general meeting of shareholders comply with the relevant provisions of the
Company Law, the Securities Law, the Rules of Shareholders' Meetings of Listed Companies and other laws,
regulations, normative documents and the articles of association. The Company does not have the situation that
major shareholders and their related parties occupy or transfer the Company's funds, assets and other resources in
any form.
2. Board of Directors: The Company's Board of Directors adhere to standard operation and management,
strengthen its self-construction and improve the standard operation and decision-making of the board of directors.
During the reporting period, the Company's Board of Directors held two regular meetings and seven ad hoc
meetings to deliberate and deliberate on major issues within its mandate. All the four special committees,
namely, the Strategic and Investment Management Committee, the Audit Committee, the Nomination Committee
and the Remuneration and Appraisal Committee, under the Company's Board of Directors, carefully studied and
reviewed relevant matters according to their respective responsibilities, and provided opinions and suggestions.
They fully played the active role of each special committee in major investment decisions, important personnel
adjustments, salary standardization management, internal audit and risk control, effectively ensuring the scientific
decision-making and standardized management of the Company.
3. Board of Supervisors: the board of supervisors of the Company shall conscientiously perform its
responsibilities in accordance with the relevant laws and regulations and in a responsible manner to the Company
and its shareholders. During the reporting period, the Board of Supervisors of the Company held two regular
meetings and two temporary meetings to supervise and inspect the Company's financial situation, major decision-
making matters, internal control, standardized management and other important matters, and to give opinions. At
the same time, the supervisor also conducts in-depth understanding of the Company's operation and management
and performs its supervisory duties by attending shareholders' meetings and attending board of directors meetings
as nonvoting delegates, as well as organizing field visits to the Company's subordinate enterprise.
4. Management: during the reporting period, the management of the Company strictly complied with the
requirements of relevant regulations and the Articles of Association of the Company, conscientiously
implemented the decisions of the shareholders' meeting and the Board of Directors, actively organized the
production, operation and management of the Company, continuously improved the office meeting system and
internal control system, continuously optimized the workflow and decision-making procedures, followed the
working principles of reasonable division of labor, enhanced cooperation and the purpose of collective decision-
making on major matters, continuously improved the management level of the Company and strived to achieve
the annual operation targets.
5. Information disclosure and investor relationship management: During the reporting period, the Company's
Board of Directors should strictly comply with the requirements of the Administrative Measures for the
Information Disclosure of Listed Company and the Rules for the Listing of Stocks and other regulations and
normative documents, and the Company Shall seriously perform the obligation of the information disclosure. In
2022, the Company completed the preparation and disclosure of regular reports and interim reports in accordance
with laws and regulations, and issued a total of 70 announcements in the whole year, striving to make investors
fully understand the Company's production, operation and management and major events. The Company strictly
follows the requirements of regulatory documents such as Guidelines on Investor Relations Management for
Listed Companies and Self-regulatory Guidelines for Listed Companies on Shenzhen Stock Exchange No. 1 -
Standardized Operation of Listed Companies on the Main Board to do a good job in investor relations
management and communicate with investors through various forms such as receiving on-site visits from
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Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
investors, investor mailboxes, investor telephone hotlines and the interactive platform of Shenzhen Stock
Exchange to strengthen investors' understanding of the Company.
6. Major information confidentiality: The Company standardized the management of confidential information in
strict accordance with regulations and normative documents such as Measures for the Management of Information
Disclosure of Listed Companies, Guidance on the Supervision of Listed Companies No. 5 -- Registration and
Management of Confidential Information of Listed Companies, and conscientiously submitted the process
memorandum of major matters and insider information files in accordance with relevant regulations. During the
reporting period, the Company did not disclose any inside information and did not provide non-public information
to major shareholders or violate the provisions on information disclosure of the Company.
7. Internal control and standardization: during the reporting period, the Company carried out a self-evaluation of
internal control and regular internal audit and took active and effective measures to improve the existing problems
and shortcomings. At the same time, the Company - will strengthen business training and compliance education
for directors, supervisors, senior managers, and middle level management cadres at all levels, increase assessment,
rewards, and punishments, further improve standardized management, and strive to prevent operational
management risks.
Whether the actual situation of the corporate governance differs significantly from the listed company governance
provisions promulgated by laws, administrative regulations and China Securities Regulatory Commission
□Yes No
The actual situation of the corporate governance is not materially different from the provisions of laws,
administrative regulations and China Securities Regulatory Commission on listed company governance.
II. The independence of the Company relative to the controlling shareholder and the actual controller in
ensuring the Company's assets, personnel, finances, institutions and operations
The Company has no controlling shareholder. The Company is completely independent from its major
shareholders in terms of personnel, assets, finance, business, institutions, etc., and has the ability to make
independent decisions and operate independently.
1. Personnel independence: the Company has an independent human resource management system and salary and
welfare system; All senior management personnel of the Company are full-time management personnel of the
Company, and none of them hold any administrative positions in the shareholder unit other than directors and
supervisors; Within the scope approved by the board of directors, the Company recruits and dismisses employees
on its own according to business management needs. The Company has established a relatively complete human
resource management system and has independent management rights.
2. Asset independence: the Company has independent production facilities and auxiliary systems, land use right
and house property, office facilities and equipment. It has the power to purchase and dispose of assets on its own
within the scope authorized by the general meeting of shareholders and the board of directors.
3. Financial independence: the Company has an independent financial management department and accounting
system, equipped with independent financial management and accounting personnel. And it establishes a
relatively complete financial management system, and has independent bank accounts and tax accounts. The
Company has independent financial decision-making authority within the scope authorized by the general meeting
of shareholders and the board of directors, and there are no circumstances under which major shareholders
interfere with financial management or embezzle funds.
4. Business independence: The Company carries out production and operation activities independently, and has
established independent and complete production, procurement, sales channels and management system. Within
the scope authorized by the shareholders' general meeting and the board of directors, they shall operate, manage
and be responsible for their own profits and losses.
5. Institutional independence: According to the needs of production, operation and management, the Company
follows the modern enterprise management standards, and has established a relatively perfect organizational
structure and management structure. There is no interference by shareholders in the establishment and operation
of the Company's institutions, and there is no sharing of organizational structure with shareholders.
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Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
III. Horizontal competition
□Applicable Not applicable
IV. Annual general meetings and extraordinary general meetings held during the reporting period
1. General meeting of shareholders during the reporting period
Session of Type of the Ratio of Date of the
Date of disclosure Resolution of the meeting
meeting meeting investors meeting
The meeting deliberated and
approved the 2021 Work
Report of the Board of
Directors, the 2021
Work Report of Supervisors,
the Proposal on the 2021
Financial Final Accounts, the
Annual Proposal on 2021 Annual
Annual
general Profit Distribution Plan, the
general 38.45% April 15, 2022 April 15, 2022
meeting of full text and summary of the
meeting
2021 2021 Annual Report, the
Proposal on the 2022
Remuneration of the President
and the Proposal on the
Employment of the 2022
Auditing Offices and
Determination of Their
Remuneration.
Deliberated and approved the
First
Proposal on By-election
extraordinary Extraordinary
Independent Directors and the
general general 38.39% August 2, 2022 August 2, 2022
Proposal on Providing
meeting of meeting
Guarantee for Holding
2022
Subsidiaries in 2022.
Second
Deliberated and approved the
extraordinary
Extraordinary Proposal on the Byelection of
shareholders' September 13, September 13,
general 38.34% Non-Independent Directors of
general 2022 2022
meeting the 9th Board of Directors of
meeting of
the Company.
2022
2. Request for an extraordinary general meeting by preferred shareholders whose voting rights have been
restored
□Applicable Not applicable
V. Director, supervisors and senior management
1. Basic information
Number Number
Number Number Reasons
of of
of shares of shares Other for
shares shares
held at the increased increases changes
Working Start date End date reduced held at
Name Title Sex Age beginning in the and in share
status of the term of the term in the the end
of the current decreases increase
current of the
period period (shares) or
period period
(shares) (shares) decrease
(shares) (shares)
Kong September April 26,
Chairman Incumbent Male 39 0 0 0 0 0
Guoliang 13, 2022 2024
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September April 26,
Hu Ming Vice chairman Incumbent Male 52 0 0 0 0 0
13, 2021 2024
Huang June 3, April 26,
Director Incumbent Male 51 0 0 0 0 0
Qing 2019 2024
August 28, April 26,
Director
Chen 2017 2024
Incumbent Male 57 0 0 0 0 0
Yuhui August 11, April 26,
GM
2017 2024
April 25, April 26,
Director
Wu 2016 2024
Incumbent Male 57 0 0 0 0 0
Guowen Standing April 1, April 26,
deputy GM 2016 2024
Sun April 26, April 26,
Director Incumbent Male 39 0 0 0 0 0
Huirong 2021 2024
Huang Independent August 2, April 26,
Incumbent Female 51 0 0 0 0 0
Xiqin director 2022 2024
Chen Independent November November
Incumbent Male 52 0 0 0 0 0
Zetong director 17, 2017 17, 2023
Independent November April 26,
Du Wei Incumbent Male 67 0 0 0 0 0
director 11, 2019 2024
Chairman of
Zhai March 23, April 26,
the Board of Incumbent Male 51 0 0 0 0 0
Baojun 2023 2024
Supervisors
April 26, April 26,
Li Caijun Supervisors Incumbent Male 44 0 0 0 0 0
2021 2024
Liao June 3, April 26,
Supervisors Incumbent Male 34 0 0 0 0 0
Junkai 2019 2024
Employee
Qian April 26, April 26,
representative Incumbent Male 54 0 0 0 0 0
Wenhui 2021 2024
supervisor
Employee
April 26, April 26,
Lu Yindi representative Incumbent Female 40 0 0 0 0 0
2021 2024
supervisor
Zhang June 13, April 26,
CFO Incumbent Male 35 0 0 0 0 0
Xiaoyin 2022 2024
Secretary of
April 26, April 26,
Zou Yi the Board of Incumbent Male 49 0 0 0 0 0
2021 2024
Directors
Li Leave August 28, July 25,
Chairman Male 57 0 0 0 0 0
Xinwei office 2017 2022
Mo Independent Leave November August 2,
Male 56 0 0 0 0 0
Jianmin director office 17, 2017 2022
Chairman of
Ye Leave November February
the Board of Male 60 0 0 0 0 0
Qiliang office 17, 2017 27, 2023
Supervisors
Vice-general Leave December March 20,
Zhang Jie Female 55 17,325 0 0 0 17,325
manager office 30, 2006 2023
Total -- -- -- -- -- -- 17,325 0 0 0 17,325 --
Note: Ye Qiliang, the chairman of the Supervisory Board, left his post on February 27, 2023 after reaching his
retirement age, and Zhang Jie, the Deputy General Manager, left his post on March 20, 2023 after reaching his
statutory retirement age.
During the reporting period, whether there was any departure of directors and supervisors and dismissal of Senior
Officers
Yes □ No
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On May 13, 2022, the Company's Board of Directors received a written resignation from Mr. Mo Jianmin, an
independent director. Mr. Mo Jianmin resigned as an independent director of the 9th Board of Directors of the
Company and as convener of the audit committee and remuneration and appraisal committee for personal reasons.
Mr. Mo Jianmin's resignation will result in less than one-third of the independent directors' independent directors
and will take effect when a new listed company is elected. On August 2, 2022, the Company held the first
extraordinary general meeting of 2022 to elect Ms. Huang Xiqin as an independent director of the 9th Board of
Directors of the Company, and the resignation report of Mr. Mo Jianmin became effective.
On July 25, 2022, the Company's Board of Directors received a written resignation from Mr. Li Xinwei, a director
and the chairman of the board. Mr. Li Xinwei resigned as a director and chairman of the 9th Board of Directors of
the Company and as convener of the 9th Board of Directors of the Company Strategy and Investment
Management Committee.
On February 27, 2023, the board of supervisors of the company received a written resignation report submitted by
the chairman of the board of supervisors, Mr. Ye Qiliang. Mr. Ye Qiliang resigned as supervisor and chairman of
the 9th Board of Supervisors of the Company due to reaching the statutory retirement age.
On March 20, 2023, the board of directors of the company received a written resignation report submitted by Ms.
Zhang Jie, Deputy General Manager. Ms. Zhang Jie resigned as Deputy General Manager of the company due to
reaching the legal retirement age.
Changes in directors, supervisors and senior management personnel of the Company
Applicable □Not applicable
Name Title Type Date Reason
Directors and
Kong Guoliang Be elected September 13, 2022
chairman
Huang Xiqin Independent director Be elected August 2, 2022
Chairman of the
Zhai Baojun Be elected March 23, 2023
Board of Supervisors
Zhang Xiaoyin CFO Appointed June 13, 2022
Directors and
Li Xinwei Leave office July 25, 2022 Work change
chairman
Mo Jianmin Independent director Leave office August 2, 2022 Personal reasons
Chairman of the
Ye Qiliang Leave office February 27, 2023 Retire
Board of Supervisors
Vice-general
Zhang Jie Leave office March 20, 2023 Retire
manager
2. Appointment
Professional background, main experiences and responsibilities of the current directors, supervisors and senior
management
Mr. Kong Guoliang: Born in 1983, a member of the CPC, master of finance, CUFE, certified public accountant
and economist. He served as stock and securities affairs manager and securities affairs representative of Shenzhen
Zhenye (Group) Co., Ltd., senior manager and deputy head of Investment Department of Shenzhen Yuanzhi
Investment Co., LTD., head of Capital Operation Department, head of Investment Development Department II,
head (director) of Strategic Research Department (Board Office) and secretary of the Board of Directors of
Shenzhen Capital Holdings Co., Ltd., director of Shenzhen Zhenye (Group) Co., Ltd., director of China
International Marine Containers (Group) Co., Ltd., general manager of Shenzhen Pingwen Development
Investment Co., Ltd., and chairman of Shenzhen Yuanzhi Culture Holding Co., Ltd. He is the chairman of the
Shenzhen Energy Group Co., Ltd., the director of Shenzhen Energy (H.K.) International Limited and the director
of the Hong Kong Nam Hoi (International) Ltd. He has served as chairman of the Board of the Company since
September 2022 and chairman of the Party Committee of the Company since November 2022.
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Mr. Hu Ming: Born in 1970, Member of China National Democratic Construction Association, Master, Senior
Engineer. From March 2003 to December 2019, he worked in Nanshan District Housing and Urban-Rural
Development Bureau, Audit Bureau and other relevant government entities; From January 2020 to August 2021,
he served as the Managing Director of Dashahe Construction Investment Co., Ltd. of Shenzhen and the Managing
Director of Nanshan Anju Construction and Development Co., Ltd. of Shenzhen. He has served as managing
director of the Shenzhen Guangju Energy Co., Ltd. since August 2021 and vice chairman of the Board of the
Company since September 2021.
Mr. Huang Qing: Born in 1971, he is a member of the CPC, a middle-level economist, and a master of
economics, graduated from Wuhan University, majoring in national economic planning and management. He has
successively served as a clerk, deputy chief clerk and chief clerk of the General Office of Shenzhen Municipal
Government; Deputy Director of the General Office of the Shenzhen Municipal Government; Director of the
General Office of the Shenzhen Municipal Government; Deputy Secretary of the General Office of Shanxi
Provincial Government; Deputy Director of the Office of Shanxi Provincial People's Government in Guangzhou,
member of the Party Group, etc. He is vice president of Shenzhen Capital Holdings Co., Ltd., director of
Shenzhen Energy Group Co., Ltd., director of Shenzhen Huanshui Investment Group Co., Ltd., director of
Shenzhen Hi-tech Investment Group Co., Ltd., director of Xiong'an Green Research Think Tank Co., Ltd.,
director of Shenzhen Building Research Institute Co., Ltd., chairman of Shenzhen Yixin Investment Co., Ltd. He
has served as a director of the Company since June 2019.
Mr. Chen Yuhui: Born in 1965, a member of the CPC, senior engineer, graduated from Shanghai Jiaotong
University and obtained a bachelor's degree (undergraduate degree) in ship power and a master's degree
(postgraduate degree) in vibration, shock and noise. In 1989, he worked in the maintenance department of
Shenyang Liming Combustion Engine Company; From December 1989 to June 2006, he worked at Moon Bay
power station of Shenzhen Energy Group, successively serving as shift director of operation department, special
engineer of chief engineer's office, deputy director of maintenance department, deputy director and director. He
successively served as the Deputy General Manager and Operation Director of the Eastern power station of
Shenzhen Energy Group from June 2006 to July 2014. He served as the Chairman, General Manager and Party
Secretary of Zhuhai Shenneng Hongwan electricity Co. , Ltd. from July 2014 to August 2017. He has served as
the chairman of the Board and general manager of the Company since August 2017 and vice chairman of the
Party Committee of the Company since May 2019.
Mr. Wu Guowen: Born in 1965, bachelor. He has worked in Shenzhen Guangju Energy Co., Ltd. since 1994. He
served as the Deputy General Manager of the Shenzhen Yilin Liquid Storage Co., Ltd. from 2008 to November
2010; From December 2010 to March 2016, he worked in the Shenzhen Guangju Real Estate Co., Ltd.,
successively serving as deputy general manager, legal representative, executive director and general manager; He
served as the employee supervisor of the Shenzhen Guangju Energy Co., Ltd. from August 2013 to March 2018;
He concurrently served as the Chairman of the Shenzhen Server Petrochemical Supplying Co., Ltd. from March
2018 to September 2021; He has served as the Director and Executive Vice president of the Company since April
2016.
Mr. Sun Huirong:Born in 1983, is a member of the CPC, has a master's degree and an intermediate engineer title.
He served as senior officer and project leader of Shenzhen Geotechnical Investigation & Surveying Intitute Co.,
Ltd., Investment Director of Shenzhen Horizon Investment Management Co., Ltd., Senior manager and deputy
head of Research Department of Shenzhen Capital Holdings Co., Ltd., and deputy head of Strategic Research,
M&A and Reorganization Department. Now, he is the head of Asset Management Department and head of Audit
Department of Shenzhen Capital Holdings Co., Ltd. He is also a director of China International Marine Containers
(Group) Co., Ltd., Shenzhen Kelu Electronic Technology Co., Ltd., Shenzhen Institute of Building Science Co.,
Ltd., Shenzhen Zhenye (Group) Co., Ltd., and Shenzhen Zhaotchi Co., Ltd. He has served as a director of the
Company since April 2021.
Ms. Huang Xiqin: Born in 1971, she holds a Bachelor's degree in Law and a Master's degree in Economics from
the Party School of the Central Committee of the CPC, and an Executive MBA from the Guanghua School of
Management of Peking University. He started working in September 1992. From September 1992 to May 1998,
he served as appraiser and manager of Shenzhen International Real Estate Consulting Co., Ltd. She has served as
the Executive Director of Guozhonglian Asset Appraisal Land and Real Estate Appraisal Co., Ltd. since May
1998; From December 2000 to date, he has served as the chairman of Guozhonglian Construction Engineering
Management Consulting Co., Ltd.; From November 2001 to date, he has served as the chairman of Guangdong
Guozhonglianhang Asset Appraisal Land Real Estate Appraisal Planning Consulting Co., Ltd.; From February
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2015 to date, she has served as a director of Beijing Guozhonglian Auction Co., Ltd.; From January 2021 to date,
he has served as the supervisor of Guangdong Guozhonglian Construction Engineering Co., Ltd.; From January
2022 to date, he also served as the external director of Guangdong Province Construction Engineering Group Co.,
Ltd. She has been an independent director of the Company since August 2022.
Mr. Chen Zetong: Born in 1970, bachelor of laws of Southwest University of Political Science and Law,
bachelor of laws of Hong Kong University and doctor of laws of Jilin University. From 1994 to 2003, he served as
clerk, assistant judge and judge of the Real Estate Division of the Intermediate People's Court of Shenzhen. 2003-
2006: President of the Economic Chamber; July-August 2002, Internship at the High Court of Hong Kong as a
Judicial Assistant; From 2006 to 2010, he served as vice president of the seventh civil court (court of corporate
liquidation and bankruptcy), of which he presided over the work of the court from June 2006 to August 2008.
From 2010 to 2012, he served as a partner of Beijing Jindu Law Firm. From 2012 to date, he served as the senior
partner of Beijing Junzejun Law Firm. He is independent directors of listed company Tianma Microelectronics
Co., Ltd., independent directors of non-listed company Fude Insurance Holding Co., Ltd, independent directors of
Fude Life Insurance Co., Ltd, and independent directors of Life Insurance Co., Ltd. He has served as an
independent director of the Company since November 2017.
Mr. Du Wei: Born in 1955, is a member of the CPC, senior engineer, Ph. D. , graduated from Institute of Plasma
Physics, Chinese Academy of Sciences. Successive cadres of the national energy commission; Assistant engineer
and chief section officer of Yangtze River Basin Planning Office; Engineer and deputy department manager of
China Nanshan Development Co., Ltd.; Deputy General Manager and General Manager of Shenzhen Changjiang
Computer Industry Co. , Ltd. Deputy head (deputy director) and head (director) of the Evaluation and
Recommendation Center for Senior Managers of the Organization Department of the Shenzhen Commission;
Deputy general manager of Shenzhen Expressway Development Company; Chairman of Shenzhen International
West Logistics Co., Ltd. General Manager of Shenzhen International Qianhai Real Estate (Shenzhen) Co., Ltd.;
Senior Consultant of Shenzhen International Qianhai Real Estate (Shenzhen) Co., Ltd. He is currently the
executive director and general manager of Shenzhen Borun Investment Co., Ltd. and the executive director and
general manager of Shenzhen Tianyu Freight Forwarding Co., Ltd. He has served as an independent director of
the Company since November 2019.
Members of the Board of Supervisors of the Company:
Zhai Baojun: Born in 1971, is a CPC member and holds a bachelor's degree. He was Manager of the Sales
Department of Shenzhen Baoan Zhaobao Real Estate Development Co., Ltd. from May 1993 to August 2001; and
worked for Shenzhen Guangju Energy Co., Ltd. from August 2001 to November 2013, successively serving as
Secretary of the CYL Committee, Armed Officer, General Office Director and Party Office Director. He was
Deputy General Manager of Shenzhen Guangju Yida Hazardous Chemical Warehousing Co., Ltd; from December
2013 to April 2015, and Deputy General Manager of Shenzhen Xiefu Energy Co., Ltd. (Xiefu Energy) from May
2015 to April 2020. He has served as General Manager of Xiefu Energy since May 2020.He has served as
Chairman of the Board of Supervisors of the Company since March 2023.
Mr. Li Caijun: Born in 1978, is the member of the CPC and has a master's degree. He used to be an accounting
teacher of Chongqing Beibei Vocational Education Center, the manager of the finance department of Chongqing
Yanlong Property Development Co., Ltd., the manager of the investment banking department of Shenzhen Energy
Finance Co., Ltd., the director of the financial management department and the deputy director of the financial
management department of Shenzhen Special Zone Construction and Development Group Co., Ltd., the deputy
director of the strategic research and merger and reorganization department of Shenzhen Capital Operation Group
Co., Ltd., the financial director of Shenzhen Huanshui Investment Group, the director of the planning and finance
department of Shenzhen Capital Holdings Co., Ltd., and is currently the general manager of Shenzhen Yuanzhi
Culture Holdings Co., Ltd. He has served as a supervisor of the Company since April 2021.
Mr. Liao Junkai: Born in 1988, he is a member of the CPC. He holds a Master of Laws from the South China
University of Technology. He has successively served as assistant, supervisor and manager of the risk control
department of Shenzhen Capital Holdings Co., Ltd.; He also served as an supervisor of Shenzhen Institute of
Building Research Co., Ltd. from November 2020 to November 2021; Since June 2021, he has been the General
Manager of the Asset Management Center of Shenzhen Kelu Electronic Technology Co. , Ltd. He has served as
the supervisor of the Company since June 2019.
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Mr. Qian Wenhui: Born in 1968, accountant, university degree, graduated in 1990 from Changsha Normal
University of Water Conservancy and Electric Power, major in financial accounting. From July to October 1990,
he worked in Yangluo power station in Wuhan. He worked in our Finance Department from October 1990 to
August 2003; He served as the CFO of Zhongshan Zhongfa electricity Co. , Ltd. from August 2003 to October
2011. From March 2014 to December 2016, served as supervisors of Zhongshan Shenzhong Real Estate
Development Co., Ltd. and Zhongshan Shenzhong Real Estate Investment Real Estate Co., Ltd; He has served as
the Director of the Audit Risk Control Department of the Company since November 2010; He has served as the
supervisor of the Shenzhen Server Petrochemical Supplying Co., Ltd. since May 2014. He has served as the
employee representative supervisor of the Company since April 2021.
Ms. Lu Yindi: Born in 1982, is a member of the CPC. She graduated from the Management Science and
Engineering, School of Management, HUST in 2008. In July 2008, she started to work in the Global Supply Chain
Management Headquarters of iDSBG Business Group of Foxconn Technology Group, and successively held the
posts of Deputy Section Director, Section Director and Specialist of the Supply Chain Management Department.
She joined our Nanshan Thermal Power Station in August 2018 and has successively served as Head of Contract
and Bidding, Deputy Head of Supply Department, Head of Supply Department and Deputy Director of fuel
Department. She has served as the Office Director of the Company's Board of Directors since June 2021. She has
served as the employee representative supervisor of the Company since April 2021.
Senior officers of the Company:
See the resumes of the aforementioned directors for the general manager Chen Yuhui and the executive vice
general manager Wu Guowen.
Mr. Zhang Xiaoyin: Born in 1987, is a member of the CPC. He holds the professional qualifications of senior
accountant, certified public accountant, certified tax accountant, asset appraiser and FRM. He started to work in
October 2008 and successively served as auditor of Financial Services Team of Ernst & Young Huaming CPA
Shenzhen Branch, financial accountant of Planning and Finance Department of Wanlian Securities Co., LTD.,
senior manager of financial management Department of China Resources Shenzhen State Investment & Trust Co.,
Ltd., as well as accountant and supervisor of China Resources Energy Services Co., Ltd. and Investment Director
(Deputy Head) and other positions of Yuanzhi Venture Capital (Investment Development Division II) of
Shenzhen Capital Holdings Co., Ltd. He has served as the CFO of the Company since June 2022.
Mr. Zou Yi: Born in 1973, a member of the CPC, economist, M. E. From July 1994 to September 2007, he
worked in the headquarters of Shenzhen Energy Corporation, and successively served as the business director of
Finance Department, deputy business director of fund office and the business director of chairman's secretariat.
From September 2007 to December 2017, he was the Head of the Treasury Department of Shenzhen Energy
Finance Co. , Ltd. He served as the Deputy General Manager of Shenzhen Energy Finance Co., Ltd. from
December 2017 to July 2019. He concurrently served as the Director of Huizhou Shenneng Fengda electricity Co.,
Ltd. from August 2017 to November 2018 From August 2019 to April 2021, he served as Director of the
Company's Board of Directors Office, meanwhile concurrently served as Director of the Administrative
Department from July 2020 to April 2021. He has served as secretary of the Company's Board of Directors since
April 2021.
Post-holding in the shareholder entity
Applicable □Not applicable
Whether to
Position in receive
Name of Shareholder name of Start date of the End date of the
shareholder’s remuneration
the post organization term term
unit allowance in the
shareholder's unit
Kong Shenzhen Energy
Chairman November 2, 2022 No
Guoliang Group Co., Ltd.
Huang Shenzhen Energy
Director April 24, 2019 No
Qing Group Co., Ltd.
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Kong Hong Kong Nam Hoi
Director September 9, 2022 No
Guoliang (International) Ltd.
Post-holding in other entities
Applicable □Not applicable
Whether to
receive
Name of Other name of Position in other Start date of the End date of the
remuneration
the post organization units term term
allowance in
other units
Shenzhen Guangju Director August 20, 2021
Hu Ming Yes
Energy Co., Ltd. GM August 4, 2021
Huang Shenzhen Capital Vice-general
September 1, 2016 Yes
Qing Holdings Co., Ltd. manager
Shenzhen Shen Nan
Wu November 18,
Dian Environment Director No
Guowen 2022
Protection Co., Ltd.
Director of Asset
Management April 18, 2021
Sun Shenzhen Capital Department Yes
Huirong Holdings Co., Ltd.
Director of Audit
May 12, 2022
Department
Guozhonglian Asset
Appraisal Land and Executive
May 22, 1998 Yes
Real Estate Appraisal director
Co., Ltd.
Guozhonglian
Construction
Huang Engineering Chairman December 13, 2000 Yes
Xiqin Management
Consulting Co., Ltd.
Guangdong
Guozhong United
Bank Assets Appraisal November 26,
Chairman Yes
Land Real Estate 2001
Appraisal Planning
Consulting Co., Ltd.
Chen Beijing Junzejun Law
Senior partner September 1, 2012 Yes
Zetong Offices
Shenzhen Borun
Director and GM February 1, 2020 No
Investment Co., Ltd.
Du Wei Shenzhen Tianyu Executive
Freight Forwarding Director, General February 1, 2021 No
Co., Ltd. Manager
Zhai Shenzhen Server Acting General
May 1st, 2020 Yes
Baojun Energy Co., Ltd. Manager
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Head of Planning
Shenzhen Capital December 17,
and Finance April 18, 2021 Yes
Holdings Co., Ltd. 2022
Department
Li Caijun
Shenzhen Yuanzhi
Culture Holding Co., GM December 17, 2022 Yes
Ltd
General Manager
Shenzhen Kelu
Liao of Asset
Electronic June 7, 2021 Yes
Junkai Management
Technology Co., Ltd.
Center
Qian Shenzhen Server
Supervisors September 2, 2021 No
Wenhui Energy Co., Ltd.
The situation of penalties for the current and outgoing directors, supervisors and senior management personnel of
the Company executed by securities regulatory institutions in the last three years.
□Applicable Not applicable
3. Remuneration of directors, supervisors and senior officers
Decision-making procedures, determination basis and actual payment of remuneration of directors, supervisors
and senior managers
1. Decision-making procedure: According to the Company's Articles of Association, the remuneration of directors
and supervisors shall be decided by the shareholders' meeting, and the remuneration of senior managers shall be
decided by the board of directors.
2. Basis for determination: at present, the Company has not implemented a remuneration system for non-
independent directors and supervisors, and directors and employee supervisors serving in the Company only
receive remuneration for their administrative positions in the Company. The Company's board of
directors determines the annual remuneration standards of the Company's senior managers according to the annual
operating efficiency, post grade, and other factors and comprehensively considers the salary level of the industry
and determines the actual remuneration standards that can be paid according to the assessment and audit of the
annual business performance indicators.
3 Actual payment: The Company pays the remuneration in strict accordance with the decision-making procedures
and determination basis for the remuneration of directors, supervisors and senior management, and the expenses
related to transportation, accommodation, research, inspection and attendance at meetings incurred by directors
and supervisors for the performance of their duties are borne by the Company.
Compensation for directors, supervisors and senior management of the Company during the reporting period
(including employee benefit payments and various insurance premiums, provident funds and annuities received
from the Company)
Unit: RMB 10,000
Whether or not
Total pre-tax to receive
compensation compensation
Name Title Sex Age Working status
received from from a related
the Company party in the
Company
Kong
Chairman Male 39 Incumbent 36.84 No
Guoliang
Hu Ming Vice chairman Male 52 Incumbent 0 Yes
Huang Qing Director Male 51 Incumbent 0 Yes
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Chen Yuhui Director and GM Male 57 Incumbent 98.47 No
Director and
Wu Guowen Executive Deputy Male 57 Incumbent 92.51 No
General Manager
Sun Huirong Director Male 39 Incumbent 0 Yes
Huang Xiqin Independent director Female 51 Incumbent 4.96 No
Chen Zetong Independent director Male 52 Incumbent 11.90 No
Du Wei Independent director Male 67 Incumbent 11.90 No
Li Caijun Supervisors Male 44 Incumbent 0 Yes
Liao Junkai Supervisors Male 34 Incumbent 0 Yes
Qian Wenhui Employee supervisor Male 54 Incumbent 61.88 No
Lu Yindi Employee supervisor Female 40 Incumbent 52.24 No
Zhang Xiaoyin CFO Male 35 Incumbent 25.29 Yes
Secretary of the
Zou Yi Male 49 Incumbent 89.78 No
Board of Directors
Li Xinwei Chairman Male 57 Leave office 78.43 No
Mo Jianmin Independent director Male 56 Leave office 6.94 No
Chairman of the
Ye Qiliang Male 60 Leave office 92.27 No
Board of Supervisors
Vice-general
Zhang Jie Female 55 Leave office 89.78 No
manager
Total -- -- -- -- 753.19 --
Note: Ye Qiliang, the chairman of the Supervisory Board, left his post on February 27, 2023 after reaching his
retirement age, and Zhang Jie, the Deputy General Manager, left his post on March 20, 2023 after reaching his
statutory retirement age.
VI. Performance of duties by directors during the reporting period
1. Board of Directors during the reporting period
Date of the
Session of meeting Date of disclosure Resolution of the meeting
meeting
The fifth Deliberated and approved the Proposal on Shutdown
extraordinary and Decommissioning of Two 9E Gas Turbines of
February 21, 2022 February 23, 2022
meeting of the 9th Shen Nan Dian (Zhongshan) Electric Power Co.,
Board of Directors Ltd..
Deliberated and approved the full text and summary
of the 2021 Work Report of the Board of Directors,
2021 Work Report of the General Manager,
Proposal on the 2021 Asset Provision for
Third meeting of Impairment, 2021 Financial Final Accounts, 2021
the 9th Board of March 23, 2022 March 25, 2022 Profit Distribution Plan, 2021 Internal Control
Directors Evaluation Report Proposal for Deliberation and
2021 Annual Report; Proposal on the
Comprehensive Business Plan for 2022, Proposal on
the Asset Disposal of Units 7 and 9 of Nanshan
Thermal Power Station, Proposal on the Application
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of the Company for Comprehensive Financing
Credit in 2022, Proposal on the Salary Accrual Plan
for 2022, Proposal on Hiring an Audit Organization
for 2022 and Determining Their Remuneration, and
Proposal on Convening the General Meeting of
Shareholders for 2021.
The sixth
extraordinary Deliberated and approved the First Quarter Report
April 26, 2022 April 27, 2022
meeting of 9th 2022.
Board of Directors
The seventh
extraordinary Deliberated and approved the Proposal on
June 13, 2022 June 14, 2022
meeting of the 9th Appointment of Corporate CFO.
Board of Directors
Deliberated and approved the Proposal on By-
The eighth
Election Independent Directors, the Proposal on
extraordinary
July 15, 2022 July 16, 2022 Providing Guarantee for Holding Subsidiaries in
meeting of the 9th
2022 and the Proposal on Convening the First
Board of Directors
Extraordinary General Meeting in 2022.
Deliberated and approved the full text and summary
Fourth meeting of
of the Semi-Annual Report 2022; Proposal on
the 9th Board of August 17, 2022 August 19, 2022
Revising the Management System for Investment
Directors
Decision-making.
Deliberated and approved the Proposal on By-
The 9th
election of Non-independent Directors of 9th Board
extraordinary
August 26, 2022 August 27, 2022 of Directors of the Company and the Proposal on
meeting of the 9th
Convening of the Second Extraordinary General
Board of Directors
Meeting in 2022.
Deliberated and approved the Proposal on Election
The 10th
of Chairman of the 9th Board of Directors of the
extraordinary September 13, September 14,
Company and the Proposal on Election of Members
meeting of the 9th 2022 2022
of The 9th Board Of Directors of the Company
Board of Directors
Strategy and Management Committee.
The 11th
The Proposal on Adjustment of Salary Accrual
extraordinary
October 24, 2022 October 26, 2022 Quota and Bonus Settlement Scheme and the Third
meeting of the 9th
Quarter Report of 2022 was reviewed and passed.
Board of Directors
2. Attendance by directors at the Board of Directors and the general meeting
Attendance by directors at the Board of Directors and the general meeting of shareholders
Number of
board Absent from
Number of Number of Number of Number of
meetings to Times of the meeting
Name of attendances board meetings absences at general
be attended entrusted for the
directors at the Board attended by the Board of meetings
during the presence second time
of Directors communication Directors attended
reporting in a row
period
Kong
2 1 1 0 0 No 0
Guoliang
Hu Ming 9 1 8 0 0 No 3
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Huang Qing 9 1 8 0 0 No 3
Chen Yuhui 9 1 8 0 0 No 3
Wu Guowen 9 1 8 0 0 No 3
Sun
9 1 8 0 0 No 2
Huirong
Huang
4 1 3 0 0 No 1
Xiqin
Chen
9 1 8 0 0 No 3
Zetong
Du Wei 9 1 8 0 0 No 3
Li Xinwei 5 0 5 0 0 No 1
Mo Jianmin 5 0 5 0 0 No 1
Explanation of failure to attend the board meeting in person for two consecutive times
No
3. Objections by directors to relevant matters of the Company
Whether the director raises any objection to the relevant matters of the Company
□Yes No
During the reporting period, the directors did not raise any objection to the relevant matters of the Company.
4. Other instructions on the performance of duties by directors
Whether the relevant suggestions of the directors on the Company are adopted
Yes □ No
Statement by the directors on the adoption or non-adoption of the relevant recommendations of the Company
During the reporting period, all directors of the Company were diligent and conscientious, and carried out their
work in strict accordance with the relevant provisions of the China Securities Regulatory Commission and
Shenzhen Stock Exchange, as well as the Company's Articles of Association, Board of Directors Rules of
Procedure, and other systems. They pay high attention to the standardized operation and operation of the
Company, and carefully study various proposals submitted to the Board of Directors for deliberation based on the
actual situation of the Company to ensure scientific decision-making and maintain the legitimate equity of the
Company and all shareholders.
VII. Information of special committees under the board of directors during the reporting period
Number The important Other
Date of Details of
Name of of Content of the opinions and situations of
Membership the objections
Committee meetings meeting suggestions put duty
meeting (if any)
held forward performance
To According to the
Li Xinwei, deliberate the actual situation of
Strategy and Hu Ming, 2021 the Company, the
Investment Huang March Performance attending members
1 No
Management Qing, Chen 23, 2022 Report of the unanimously adopted
Committee Yuhui and Strategy and the proposal after
Wu Guowen Investment full communication
Management and discussion.
Committee of
46
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
the Board of
Directors.
Deliberated the According to the
2021 actual situation of
Performance the Company, the
March Report of the attending members
No
23, 2022 Nomination unanimously adopted
Committee of the proposal after
the Board of full communication
Directors. and discussion.
According to the
actual situation of
Deliberated the
the Company, the
Proposal on
June 13, attending members
Appointment of No
2022 unanimously adopted
Corporate
the proposal after
CFO.
Chen full communication
Nomination Zetong, Hu and discussion.
4
Committee Ming and According to the
Du Wei actual situation of
Deliberated the
the Company, the
Proposal on the
July 15, attending members
Independent No
2022 unanimously adopted
Directors of
the proposal after
By-Elections.
full communication
and discussion.
Deliberated the
According to the
Proposal on
actual situation of
By-election of
the Company, the
Non-
August attending members
independent No
26, 2022 unanimously adopted
Directors of 9th
the proposal after
Board of
full communication
Directors of the
and discussion.
Company.
Deliberated the
2021
Performance According to the
Report of the actual situation of
Remuneration the Company, the
Mo Jianmin,
Remuneration and Appraisal attending members
Wu March
and Appraisal 1 Committee of unanimously adopted No
Guowen, 23, 2022
Committee the Board of all the proposals
Du Wei
Directors and after full
the Proposal on communication and
the 2022 discussion.
Remuneration
Provision Plan.
Mo Jianmin, Listened to the According to the
Sun Auditor' Report actual situation of
Audit March 2021 and the the Company, the
Huirong, 1 No
Committee 23, 2022 Internal attending members
Chen
Zetong Control Audit unanimously adopted
Report 2021; all the proposals
47
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
Deliberated the after full
Proposal on communication and
Submitting For discussion.
Review the
Internal
Control
Evaluation
Report in 2021,
the Proposal on
Hiring and
Determining
the
Remuneration
of Auditors in
2022 and the
Performance
Report of the
Audit
Committee of
the Board of
Directors in
2021.
Listened to the
Members attending
Annual Audit
the meeting listened
Huang Plan 2022 of
carefully to the
Xiqin, Sun Shenzhen
October LIXINZHONGLIAN
Huirong, 1 Nanshan Power No
21, 2022 CPAS's audit plan
Chen Co., Ltd.
and fully
Zetong submitted by
communicated and
Lixinzhonglian
discussed it.
Cpas.
VIII. Work of the supervisors
Whether the Board of Supervisors found any risks in the Company during its supervision activities during the
reporting period
□ Yes No
The Board of Supervisors has no objection to the supervisory matters during the reporting period.
IX. Employees of the Company
1. Number of employees, professional composition and education level
Number of active employees in the parent company at
253
the end of the reporting period (persons)
Number of in-service employees of major subsidiaries
129
at the end of the reporting period (person)
Total number of in-service employees at the end of the
382
reporting period (person)
Total number of employees receiving salary in the
382
current period (person)
Number of retired employees of the parent company and
0
its major subsidiaries (person)
Professional categories
48
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
Types of professional category Number of specialty composition (person)
Production personnel 163
Salesperson 1
Technician 105
Financial staff 23
Administrative staff 90
Total 382
Education
Type of education background Quantity (person)
High school and below 41
College and technical secondary education 164
Bachelor's degree 157
Master and above 20
Total 382
2. Remuneration policy
The Board of Directors adopts the principle of annual remuneration provision with fixed basic remuneration as the
main body for the Company. The remuneration of the chairman of the board of directors shall be reported to the
shareholders' general meeting for examination and approval upon the approval of the board of directors; The
remuneration of the general manager and senior officers at the level of deputy general manager shall be proposed
by the remuneration and appraisal committee of the board of directors and submitted to the board of directors for
examination and approval. The compensation of other personnel is authorized to be managed by the Company's
management team based on the principles of “salary based on position” and "remuneration based on work”.
Within the annual salary quota approved by the board of directors, the Company strictly controls salary costs,
establishes a salary incentive mechanism linked to employee performance, formulates salary standards,
distribution plans, assessment, rewards and punishment methods, and is responsible for organizing and
implementing them to give full play to the incentive role of salary.
3. Training plan
The Company attaches great importance to employee training, and has established a relatively perfect training
system. By strengthening employee training, the Company enhances the post skills and comprehensive quality of
employees, better meets the needs of the Company's operation and management for talents, and cultivates reserve
talents for the Company's sustainable development. During the reporting period, in terms of safety training, the
Company organized safety education and training, emergency rescue drills, and emergency response training at all
levels of the Company in accordance with the Work Safety Law and other laws and regulations, organized and
participated in epidemic control and prevention, confidential work training, etc. to improve the safety awareness,
accident prevention ability, and professional level of cadres and employees at all levels. In terms of on-the-job
training, a combination of overseas study and internal training is adopted to carry out on-the-job training with
certificates for key business and technical positions to improve employees' ability to perform their duties and rely
on the gas turbine simulation training base to improve the practical operation and resilience of power station
operators. In the party member training and learning, the Party Committee of the Company and the Party branches
in strict accordance with the requirements of the superior party organization, formulate practical training and
learning plans, take the combination of online and offline, the distribution of books, materials, the teachers,
experts invited in, leading the party members to go out and other forms of various ways, actively carry out the arty
member learning and education work. At the same time, the system of “three meetings and one lesson”shall be
strictly implemented, and activities such as“Secretary's Party Lecture” shall be earnestly carried out. Through
training and study, ensure that the Party organization plays the role of fighting fortress, and ensure that the
majority of Party members play the role of vanguard and exemplary.
49
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
4. Labor outsourcing
□Applicable Not applicable
X. Profit distribution and conversion of capital reserves into share capital of the Company
Formulation, implementation or adjustment of profit distribution policies, especially cash dividends, during the
reporting period
□Applicable Not applicable
The company was profitable during the reporting period and the parent company's profit available for distribution
to shareholders was positive but no cash dividend distribution plan was proposed.
□Applicable Not applicable
Conversion of profit distribution and capital reserves into share capital during the reporting period
□Applicable Not applicable
The Company plans to distribute no dividends, bonus shares or increase share capital by the reserve funds.
XI. Implementation of the Company's equity incentive plans, employee stock ownership plans or other
employee incentive measures
□Applicable Not applicable
During the reporting period, the Company had no equity incentive plan, employee stock ownership plan or other
employee incentive measures and their implementation.
XII Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
According to the provisions of the Basic Standards for Enterprise Internal Control and its implementation
guidelines, the Company will update and improve the Company's internal control system in a timely manner,
establish a scientifically designed and applicable internal control system, and jointly form the Company by the
audit committee and internal audit department. The risk internal control management organization system is
established, and the Company's internal control management is supervised and evaluated. Through the operation,
analysis, and evaluation of the internal control system, the Company effectively prevents risk in management and
promotes the realization of the internal control goals.
2. Details of major defects of the internal control found during the reporting period
□ Yes No
XIII. Management control of the subsidiaries during the reporting period of the Company
No
XIV. Internal control self-evaluation report or internal control audit report
1. Internal control self-evaluation report
Disclosure date of full text of
April 7, 2023
internal control evaluation report
Disclosure index of the full text of Internal Control Evaluation Report 2022, CNINF
internal control evaluation report http://www.cninfo.com.cn
Proportion of total assets of the unit
brought into assessment scope to the
total assets of the consolidated 94.63%
financial statements total assets of
the Company
50
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
Ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the 100.00%
Company's consolidated financial
statements
Defect identification standard
Category Financial report Non-financial report
Major defects: under major Major defects: under major
operational activities, there are major operational activities, there are major
defects in several companies which defects in several companies which
are consolidated into the preparation are consolidated into the preparation
of financial statements; or there are of financial statements; or there are
major defects in few of companies major defects in few of companies
which are consolidated into the which are consolidated into the
preparation of financial statements preparation of financial statements
but the Company with major defect but the Company with major defect
are the main one participating into are the main one participating into
such major operation activities; such major operation activities;
Substantial defects: under major Substantial defects: under major
operational activities, there are operational activities, there are
substantial defects in few companies substantial defects in few companies
in consolidated statements, and the in consolidated statements, and the
Company with substantial defects is Company with substantial defects is
not the major participating company not the major participating company
in the major business activities Or in the major business activities Or
there are moderate defects in more there are moderate defects in more
than one consolidated statement than one consolidated statement
company; or there are moderate company; or there are moderate
Qualitative criteria
defects in few of companies which defects in few of companies which
are consolidated into the preparation are consolidated into the preparation
of financial statements but the of financial statements but the
Company with moderate defect are Company with moderate defect are
the main one participating into such the main one participating into such
major operation activities; major operation activities;
General defects: under major General defects: under major
operational activities, there are operational activities, there are
moderate defects in few of moderate defects in few of
companies which are consolidated companies which are consolidated
into the preparation of financial into the preparation of financial
statements, and the Company with statements, and the Company with
moderate defects is not the main one moderate defects is not the main one
participating into the major participating into the major
operational activities; Or there are operational activities; Or there are
only ordinary defects in each only ordinary defects in each
consolidated statement company; Or consolidated statement company; Or
there is no internal control defects there is no internal control defects
under major business activities, but under major business activities, but
only internal control defects under only internal control defects under
non-major business activities. non-major business activities.
Major defects: the amount misstated Substantial defects: 0.2% of total
≥0.5% of the total consolidated consolidated statement assets ≥ 0.5%
Quantitative criteria statement assets; of direct total consolidated statement
Substantial defects: 0.2% of total assets;
consolidated statement assets ≤ Substantial defects: 0.2% of total
51
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
misstated amount <0.5% of the total consolidated statement assets ≤ 0.5%
consolidated statement assets of direct total consolidated statement
General defects: misstated amount assets;
<0.2% total consolidated statement General defects: Amount of direct
assets loss < 0.2% of total consolidated
statement assets.
Number of major defects in the
0
financial report (unit)
Number of significant defects in the
0
non-financial report (unit)
Number of substantial defects in the
0
financial report (unit)
Number of substantial defects in
0
non-financial report (unit)
2. Internal control audit report
Applicable □Not applicable
Deliberations in Internal Control Audit Report
In the opinion of the accounting firm, the Shenzhen Nanshan Power Co., Ltd. has maintained effective financial
reporting internal control in all material respects in accordance with the Basic internal control Standards and
related regulations.
Disclosure of internal control audit report Disclosure
Disclosure date of full text of internal control audit
April 7, 2023
report
Disclosure index to full text of internal control audit Internal Control Evaluation Report 2022, CNINF
report http://www.cninfo.com.cn
Opinion type of internal control audit report Standard unqualified opinion
Whether there are significant defects in the non-
No
financial report
Internal control audit report on whether the accounting firm has issued a modified opinion
□ Yes No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report
of the board of directors
Yes □ No
XV. Rectification of self-examination problems in special actions for listed company governance
The self-inspection and rectification of the special action on corporate governance of listed company was
completed in 2021. During the reporting period, in strict accordance with the relevant provisions of laws and
regulations, closely centering on the Company's development strategy, the Company diligently fulfilled its
obligations and exercised its powers, conscientiously implemented the resolutions of the shareholders' meeting,
actively and effectively carried out the work of the Board of directors, and earnestly safeguarded the
legitimate equity of the Company and all shareholders.
52
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
Section V Environment and Social Responsibilities
I. Major environmental protection Issues
Whether the listed company and its subsidiaries are listed as major pollutant discharge entities by environmental
protection departments
Yes □ No
Relevant policies and industrial standards for environmental protection
The company is in the industry of 4411 thermal power generation industry, the current implementation of Thermal
Power Station Emission Standard GB-13223-2011. At the same time, subordinate Nanshan Thermal Power
Station strictly control nitrogen oxides emissions in accordance with the “Shenzhen Blue” Sustainable Action Plan
2018.
Environmental protection administrative licensing condition
The subsidiary Nanshan Thermal Power Station has obtained the pollutant discharge license issued by Nanshan
Administration Bureau of Shenzhen Ecological Environment Bureau, License No.: 91440300764983799T001P.
The subsidiary Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. has obtained the pollutant discharge license
issued by Zhongshan Ecological Environment Bureau, license number: 914420007564567614001P.
Industrial emission standards and specific conditions of pollutant discharge involved in the operating activities
Types of
Name of Pollutant
main Main Number Distributio
the Emission discharge Total Authorized Excessiv
pollutants pollutant Ways of of n of
Company concentration/intensit standard emission total e
and s and discharge discharg discharge
or name of y implemente s emissions emission
characteristi features e outlets outlets
subsidiary d
c pollutants
Application
Within the
Centralize of
Shenzhen plant area
d <15 "Shenzhen
Nanshan Nitrogen Nitrogen of Nanshan 53.18
emissions 2 Blue" 457.5 tons 0
Power Co., oxides oxides Thermal mg/m tons
of boiler emission
Ltd. Power
stack criteria
Station
<15mg/m3
Application
Within the
Centralize of
Shenzhen plant area
d <15 "Shenzhen
New Power Nitrogen Nitrogen of Nanshan 31.47
emissions 1 Blue" 228.75 tons 0
Industrial oxides oxides Thermal mg/m tons
of boiler emission
Co., Ltd. Power
stack criteria
Station
<15mg/m3
The
pollutant
discharge
was 324.5
tons/year
before July
Within the
Shen Nan 2022, which
Centralize plant area
Dian was
d of <50
(Zhongshan Nitrogen Nitrogen changed to
emissions 2 Zhongshan GB13223 2.91 tons 0
) Electric oxides oxides mg/m 803.06
of boiler Nanlang
Power Co., tons/year
stack Power
Ltd. after being
Plant
approved by
Zhongshan
Ecological
Environmen
t Bureau in
July 2022.
For the treatment of pollutants, the Company has a total of 5 sets of 9E units, Shenzhen Nanshan Power Co.,
Ltd. has two 9E units and Shenzhen New Power Industrial Co., Ltd. has one 9E unit, all using GE DLN1.0+ low
nitrogen combustion system. Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. owns two sets of 9E unit using
the GE DLN1.0 low-nitrogen combustion system. During the reporting period, the Company and its holding
53
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
subsidiaries strictly abide by the national laws and regulations on environmental protection, and all the pollutants
discharged from the Company meet the national discharge standards. There are no environmental pollution
accidents and no penalties imposed by relevant authorities due to major environmental protection issues.
Emergency plan for abrupt environmental accidents
The emergency response plan has been filed with the Guangdong Province Environmental Protection Department
and the corresponding municipal environmental protection bureau.
Environmental self-monitoring program
A self-monitoring plan has been prepared and approved by the environmental protection department; Carry out
timely information disclosure of surveillance data on the website of environmental protection administration.
Relevant information on the input in environmental governance and protection and the payment for environmental
protection tax
The Company attaches great importance to environmental protection, and strengthens on-site management by
carrying out special work such as investigation of potential environmental risks and standardized management of
hazardous wastes; In addition, the Company continuously increases the investment in the maintenance of
environmental protection facilities, continuously improves and perfects the environmental protection
infrastructure, and continuously increases the level of pollution prevention and control.
The Company pays environmental protection tax in strict accordance with the requirements of the Law of the
People's Republic of China on Environmental Protection Tax, President's Decree No. 61 and other relevant laws
and regulations.
Measures taken to reduce its carbon emissions during the reporting period and their effects
Applicable □Not applicable
During the reporting period, the power stations under the Company continuously improve the efficiency of the
units and reduced carbon emissions by implementing technical transformation measures such as unit condenser
retrofit and shaft seal heater retrofit.
Administrative penalties imposed due to environmental problems during the reporting period
No
Other environmental information that shall be made public
No
Other environmental protection related information
No
II. Social responsibilities
In 2022, although the Company faced many challenges in terms of production, operation and management, the
Company had the courage to shoulder our social responsibilities, actively safeguarded electricity supply in the
face of serious inversion of power generation cost and electricity prices, and earnestly fulfilled its social
responsibilities to the best of its ability. In terms of work safety, the Company strictly abides by the Work Safety
Law and other relevant laws and regulations, and in accordance with the provisions of “shared responsibilities of
the party and the government, dual responsibilities for one post, joint management, and accountability for
dereliction of duty”, takes multiple measures to strengthen safety management, compacts safety responsibilities at
all levels, and continuously maintains the “five nos” safety objective. In terms of environmental protection, the
Company strictly abides by national and local environmental protection laws and regulations. We always adhere
to the concept of clean power generation and circular economy development. All the environmental protection
work have been carried out effectively and the environmental protection emissions have reached the standard. No
environmental pollution accidents have occurred. In terms of epidemic control and prevention, the Company
strictly implemented the decision and deployment of the Party Central Committee and the State Council and the
work requirements of the epidemic control and prevention command institutions at all levels, implemented the
main responsibility of epidemic control and prevention without compromise, and in accordance with the decision
54
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
and deployment of higher-level units and the competent industry departments, on four occasions and for a total of
88 days, during the particularly severe period of the epidemic, dozens of operational staff on duty in the main
control room were put on 24-hour fully enclosed duty in the plant to ensure that the power station units could be
switched on at any time, and successfully completed the task of guaranteeing power supply under the special
situation, and resolutely built a firm line of defense against the epidemic; In the meanwhile, it has actively
mobilized cadres and employees to participate in anti-pandemic voluntary services, and successively dispatched
nearly 20 employees to actively participate in social anti-pandemic voluntary services in four batches to
demonstrate their responsibilities. In terms of love assistance, the Company actively implemented the Shenzhen
consumption poverty alleviation policy, participated in the consumption poverty alleviation of 129,900 yuan,
donated 10,000 yuan to Nanshan Charity Association, organized the staff to participate in the “Shenzhen Work
Love Pengcheng”donation and other activities.
III. Consolidating and expanding achievements in poverty alleviation and rural revitalization
In 2022, the Company actively responded to the call of the Central Committee of the Communist Party of China
and the State Council on poverty alleviation and rural revitalization, implemented the policy of poverty alleviation
through consumption, and actively participated in assisting poverty alleviation through consumption when the
Company's production and operation were relatively difficult. The cumulative amount of participating in poverty
alleviation through consumption reached 129,900 yuan.
55
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
Section VI Important Matters
I. Performance of commitments
1. The actual controller, shareholders, affiliates, acquirers and the Company and other commitments of the
relevant parties of the Company have been fulfilled during the reporting period and have not been fulfilled
by the end of the reporting period
□Applicable Not applicable
There are no commitments that have been fulfilled by the actual controller, shareholders, related parties,
purchasers of the Company and other parties related to the Company during the reporting period and have not
been fulfilled during the end of the reporting period of the Company.
2. If there is a profit forecast for the assets or projects of the Company, and the reporting period is still in
the period of profit forecast, the Company shall make an explanation on whether the assets or projects
reach the original profit forecast and the reasons therefor
□Applicable Not applicable
II. Non-operating funds occupied by controlling shareholders and other related parties of the listed
company
□Applicable Not applicable
The Company had no non-operational fund occupation from controlling shareholders and its related party in
period.
III. Illegal external guarantee
□Applicable Not applicable
The company had no illegal external guarantee during the reporting period.
IV. Explanation of the Board of Directors on the latest “modified audit report”
□Applicable Not applicable
V. Statement by the board of directors, supervisors and independent directors (if any) on the “modified
auditors' report” of the accounting firm during the reporting period
□Applicable Not applicable
VI. Changes in accounting policies, accounting estimates or corrections of significant accounting errors
compared with the previous financial reports
□Applicable Not applicable
The Company had no changes in accounting policies, accounting estimates or correction of significant accounting
errors during the reporting period
VII. Changes in the scope of consolidated statements compared with the financial report of the previous
year
□Applicable Not applicable
There was no change in consolidation statement’s scope during the reporting period of the Company.
VIII. Appointment and dismissal accounting firm
Accounting firm appointed presently
LIXINZHONGLIAN CPAS (Special General
Name of the domestic accounting firm
Partnership)
Remuneration for domestic accounting firm (unit: RMB 73
56
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
ten thousand)
Consecutive audit service years for domestic accounting
4
firm
Certified public accountant name of domestic
Cao Wei, Liu Xinfa
accounting firm
Continuous years of auditing service for domestic
4
accounting firm
Whether the accounting firm is reappointed in the current period
□ Yes No
Appointment of internal control auditing accounting firm, financial consultant or sponsor
Applicable □Not applicable
LIXINZHONGLIAN CPAS (SPECIAL GENERAL PARTNERSHIP) was appointed as the auditing authority for
the internal control of the Company with expenses of 0.23 million Yuan.
IX. Delisting after the disclosure of annual reports
□Applicable Not applicable
X. Matters related to bankruptcy reorganization
□Applicable Not applicable
There were no matters related to bankruptcy reorganization during the reporting period of the Company.
XI. Major litigation and arbitration matters
□Applicable Not applicable
During the reporting period, the Company had no major litigation or arbitration matters.
XII. Punishments and rectifications
□Applicable Not applicable
There were no penalties and rectifications during the Company's reporting period.
XIII. Integrity of the Company and its controlling shareholders and actual controller
Applicable □Not applicable
During the reporting period, the Company did not fail to perform the effective judgment of the court, did not have
debts with a large amount due and unliquidated, and the integrity was good. During the reporting period, the
Company had no controlling shareholders or actual controllers.
XIV. Major related transaction
1. Related transaction related to daily operation
□Applicable Not applicable
There were no related transaction related to daily operations during the reporting period of the Company.
2. Related transaction on acquisition or sale of assets or equities
□Applicable Not applicable
There were no related transaction of acquisition or sale of assets or equity during the reporting period of the
Company.
57
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
3. Related transaction of joint outbound investments
Applicable □Not applicable
Total assets
Registere Net assets of Net profit of
Primary of the
Name of d capital the investee the investee
Co-investor Association business of the investee
the investee of the (RMB10,000 (RMB10,000
investee (RMB10,000
investee ) )
)
Invest in the
new
generation of
IT related
chips and
devices as well
as hardware,
software and
system
Shenzhen applications
Capital related to the
Holdings ecosystem of
Co., Ltd., universal
Shenzhen information
Yuanzhi and
Affiliated Shenzhen
Ruixin communicatio
legal person Yuanzhi
Equity n technology
of Shenzhen Ruixin
Investment (ICT),
Capital New
Managemen including but
Holdings Generation
t Co., Ltd., not limited to
Co., Ltd., IT Private 49,036.06 48,784.01
Shenzhen hardware, RMB -1,215.99
Shenzhen Equity
Luohu software and 100,000 (Unaudited) (Unaudited) (Unaudited)
Yuanzhi Investment
Guidance system
Ruixin Fund
Fund applications
Equity Partnership
Investment such as smart
Investment (Limited
Co., Ltd. city, smart
Managemen Partnership
and manufacturing
t Co., Ltd. )
Shenzhen and smart
City power grid
Kunpeng which are
Equity connected by
Investments ICT and based
Co., Ltd. on basic
technologies
such as
artificial
intelligence,
big data and
vision
technology
(investment
strategy)
4. Related party credit and debt current
□Applicable Not applicable
During the Company's reporting period, the Company had no current accounts of related creditor's rights and
debts.
58
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
5. Transactions with finance company with association
□Applicable Not applicable
There are no deposits, loans, lines of credit or other financial transactions between the finance company and its
related parties in association.
6. Transactions between finance company controlled by the Company and its related parties
□Applicable Not applicable
There are no deposits, loans, credit lines or other financial transactions between the finance company controlled
by the Company and its related parties.
7. Other significant related transaction
□Applicable Not applicable
There were no other significant related transaction during the Company's reporting period.
XV. Significant contract and implementations
1. Custody, contracting and lease
(1) Trusteeship
Applicable □Not applicable
Trusteeship explanation
According to the Contract for Custody and Operation of Generator Unit Assets of Shenzhen New Power
Industrial Co., Ltd. signed between the Company and New Power Company, the Company is entrusted to operate
and manage the generator unit assets owned by its wholly-owned subsidiary, New Power Company. During the
reporting period, the Company collected RMB 15.6878 million of asset custody service fees.
Gains/losses to the Company from projects that reached over 10% in total profit of the Company in reporting
period
□Applicable Not applicable
During the reporting period, the Company did not have any escrow items with profit and loss of more than 10% of
the total profit during the reporting period.
(2) Contract
□Applicable Not applicable
There was no contracting during the Company's reporting period.
(3) Lease
□Applicable Not applicable
There was no lease during the Company's reporting period.
2. Material guarantees
□Applicable Not applicable
There was no significant guarantee during the Company's reporting period.
3. Cash asset management by entrusting others
(1) Entrusted wealth management
Applicable □Not applicable
Overview of entrusted wealth management during the reporting period
59
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Unit: RMB 10,000
Overdue recovery
The source of Amount not of the financial
Amount of
funds for Unexpired recovered within management has
Type entrusted wealth
entrusted wealth balance the prescribed been deducted
management
management period impairment
amount.
Bank financial
Own fund 146,646.28 21,001.36 0 0
products
Total 146,646.28 21,001.36 0 0
The specific situation of high-risk entrusted wealth management with significant single amount, low security, and
poor liquidity
□Applicable Not applicable
The entrusted wealth management is expected to fail to recover the principal or there are other circumstances that
may lead to impairment
□Applicable Not applicable
(2) Entrusted loans
□Applicable Not applicable
There were no entrusted loans during the Company's reporting period.
4. Other major contracts
Applicable □Not applicable
Apprai
Book
sal
value Perfor
value
Dat of Nam Whet mance
Name of the
Name e of assets e of Base Transa her as at
of the Con assets Date Inde
of the sign involve evalu date of Pricing ction relate the
contr tract involve Assoc of x of
contr ing d in the ation evaluat principl price d end of
acting obje d in the iation discl discl
acting the contrac agen ion (if es (RMB' transa the
Comp ct contrac osure osure
party cont t cy (if any) 0,000) ction reporti
any t
ract (RMB1 any) or not ng
(RMB1
0,000) period
0,000)
(if any)
(if any)
The
Contrac
t is a Failu
framew re to
Comp ork
Shenz meet
any, Pipe Ma agreem
hen the
New line y ent, and Not In
Gas speci
Powe natu 14, No the No applic progre
Grou al
r ral 201 natural able ss
p Co., discl
Comp gas 8 gas
Ltd. osure
any price condi
shall be tions
negotia
ted by
the
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Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
Buyer
and the
Seller
in the
form of
supple
mentar
y
agreem
ent.
XVI. Notes to other significant events
Applicable □Not applicable
1. Shutdown and decommissioning of two 9E gas turbines of Shen Nan Dian (Zhongshan) Electric Power Co.,
Ltd.: On February 21, 2022, after deliberation and approval at the fifth provisional meeting of the 9th Board of
Directors, the Company started the shutdown and decommissioning of two sets of 9E gas units of Shen Nan Dian
Zhongshan Company. (For details, please refer to the Announcement on the Resolution of the Fifth Provisional
Meeting of the 9th Board of Directors of the Company in China Securities Journal, Securities Times, Hong Kong
Commercial Daily and CNINF. Notice number: 2022-003). On November 24, 2022, Shen Nan Dian Zhongshan
Company submitted its application for shutdown and decommissioning to the Guangdong Province Energy
Bureau. Shen Nan Dian Zhongshan Company will continue its power generation business before obtaining the
approval, which will not have a significant impact on the current production and operation of the Company and
Shen Nan Dian Zhongshan Company.
2. 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 Filing Certificate issued by
Shenzhen Nanshan District Development and Reform Bureau and the Guangdong Province Enterprise Investment
Project Filing Certificate issued by Zhongshan Municipal Development and Reform Bureau, which approved the
registration of the first phase of the Shen Nan Dian Nanshan Thermal Power Station technological transformation
and upgrading independent energy storage demonstration project and the 300 MW/600 MWh independent energy
storage power station (Phase I Project) in Cuiheng New District, Zhongshan. (For details, please refer to the
Announcement on Obtaining the Record-filing of Shen Nan Dian (Zhongshan) Electric Power Co., Ltd.
Independent Energy Storage Projects by the Company and Its Holding Subsidiaries (Announcement No. 2022-
020) disclosed in the China Securities Journal, Securities Times, Hong Kong Commercial Daily and CNINF)
3. Land related matters of Nanshan Thermal Power Plant: In August 2022, the Company learned from the website
of“Shenzhen Government Online” that Shenzhen Municipal Bureau of Planning and Natural Resources issued a
Notice on the Issuance of Shenzhen 2022 Annual Urban Renewal and Land Reconditioning Plan (Shenzhen
Planning Resources [2022] No. 332). According to the relevant contents of the attached table, The 2022 land
reconditioning project of Qianhai Cooperation Zone still includes land acquisition and storage of Nanshan
Thermal Power Station under the Company and related contents. (For details, please refer to the China Securities
Journal, Securities Times, Hong Kong Commercial Daily and CNINF Announcement No. 2022-032)
In addition to the above, there was no progress or change in the refundable items of the Company's “Project
Technological Transformation Beneficiary Fund” and the Guangdong Province Xinjiang Aid Project in which the
Company participated in 2013.
XVII. Major events of the subsidiaries of the Company
□Applicable Not applicable
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Section VII Changes in Shares and Particular about Shareholders
I. Changes in shares
1. Changes in shares
Unit: share
Before the change Increase or decrease (+,-) of the change After the change
New Capitalization
Bonus
Quantity Proportion shares of public Others Subtotal Quantity Proportion
shares
issued reserve
I. Restricted
12,994 0.0022% 12,994 0.0022%
shares
1. State-
owned
shares
2. Shares
held by state-
owned legal
person
3. Other
domestic 12,994 0.0022% 12,994 0.0022%
shares
Including:
shares held
by domestic
legal person
Domestic
natural
12,994 0.0022% 12,994 0.0022%
person’s
shares
4. Foreign
shares
Including:
shares held
by overseas
legal persons
Foreign
natural
person’s
shares
II.
Unrestricted 602,749,602 99.9978% 602,749,602 99.9978%
shares
1. RMB
ordinary 338,895,156 56.2236% 338,895,156 56.2236%
shares
2. Foreign
shares listed 263,854,446 43.7742% 263,854,446 43.7742%
domestically
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3. Foreign
shares listed
overseas
4. Others
III. Total
number of 602,762,596 100.00% 602,762,596 100.00%
shares
Reasons for changes in shares
□Applicable Not applicable
Approval of changes in shares
□Applicable Not applicable
Transfer of changes in shares
□Applicable Not applicable
The impact of stock changes on basic and diluted earnings per share, net assets value per share attributable to the
Company's ordinary shares and other financial indicators in the most recent year and the most recent period
□Applicable Not applicable
Other contents deemed necessary by the Company or required by the securities regulators to be disclosed
□Applicable Not applicable
2. Changes in restricted shares
□Applicable Not applicable
II. Securities issuance and listing
1. Issuance of securities (excluding preferred shares) during the reporting period
□Applicable Not applicable
2. Explanation of the changes in the total number of shares and shareholder structure of the Company, as
well as changes in the structure of assets and liabilities of the Company
□Applicable Not applicable
3. Existing shares of internal employees
□Applicable Not applicable
III. Shareholders and actual controllers
1. Number of shareholders and shareholding of the Company
Unit: share
Total Total
Total number of
number of number of
preferred
shareholders preferred
Total number of shareholders with
of the shareholders
shareholders in the voting right
42,912 ordinary 38,525 whose 0 recovered by the 0
ordinary shares at the shares at the voting
end of the period end of last month
end of the rights were
prior to
previous stored at the
disclosure of
month end of the
annual report (if
before the reporting
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date of period (if any) (See Note 8)
disclosure any) (see
Note 8)
Shareholders holding more than 5% of the shares or the top 10 shareholders
Number of Number Number of Pledge,
Increase or marking or
shares held of shares shares held
decrease freezing
Nature of Shareholding at the end held with without
Shareholders' name during the
shareholders ratio of the restrictive restrictive State
reporting
reporting conditions conditions of Quantity
period
period for sales for sales share
HONG KONG NAM
HOI Overseas
15.28% 92,123,248 92,123,248
(INTERNATIONAL) legal person
LTD.
Shenzhen Guangju State-owned
12.22% 73,666,824 73,666,824
Industrial Co., Ltd. legal person
Shenzhen Energy State-owned
10.80% 65,106,130 65,106,130
Group Co., Ltd. legal person
BOCI
Overseas
SECURITIES 2.34% 14,109,038 -501,824 14,109,038
legal person
LIMITED
Domestic
Zeng Ying natural 1.19% 7,159,600 0 7,159,600
persons
China Merchants
Overseas
Securities (HK) Co., 0.90% 5,430,728 -187,500 5,430,728
legal person
Ltd.
Domestic
Meiyi Investment non-state-
0.87% 5,223,200 5,200 5,223,200
Real Estate Co., Ltd. owned legal
person
Haitong International
Securities Company Overseas
0.65% 3,908,357 -1,000 3,908,357
Limited-Account legal person
Client
Domestic
Huang Yilong natural 0.64% 3,866,500 1,700,000 3,866,500
persons
Domestic
Li Baoqin natural 0.51% 3,048,150 5,800 3,048,150
persons
Strategic investors or general legal
persons becoming the top 10
No
shareholders due to placement of
new shares (if any) (see Note 3)
Explanation of the association or 1. The Shenzhen Energy Group Co., Ltd. holds 100% equity in the HONG
acting in concert of the above- KONG NAM HOI (INTERNATIONAL) LTD..
mentioned shareholders 2. The company does not know whether the above-mentioned other public
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shareholders have any association or are persons acting in concert.
Explanations on
entrustment/entrustment voting
No
rights and waiver of voting rights
by the above shareholders
Special instructions on the
existence of repurchase accounts
No
among the top 10 shareholders (in
case) (see Note 10)
Shareholding of top ten shareholders without sales restriction
Number of shares without restrictive Type of shares
Shareholders' name conditions for sales at the end of the
reporting period Type of shares Quantity
HONG KONG NAM HOI Foreign shares listed
92,123,248 92,123,248
(INTERNATIONAL) LTD. domestically
Shenzhen Guangju Industrial Co.,
73,666,824 RMB ordinary shares 73,666,824
Ltd.
Shenzhen Energy Group Co., Ltd. 65,106,130 RMB ordinary shares 65,106,130
BOCI Foreign shares listed
14,109,038 14,109,038
SECURITIES LIMITED domestically
Foreign shares listed
Zeng Ying 7,159,600 7,159,600
domestically
China Merchants Securities (HK) Foreign shares listed
5,430,728 5,430,728
Co., Ltd. domestically
Meiyi Investment Real Estate Co.,
5,223,200 RMB ordinary shares 5,223,200
Ltd.
Haitong International Securities Foreign shares listed
3,908,357 3,908,357
Company Limited-Account Client domestically
Huang Yilong 3,866,500 RMB ordinary shares 3,866,500
Foreign shares listed
Li Baoqin 3,048,150 3,048,150
domestically
Description of the association or
concerted action among the top 10
shareholders of tradable shares 1. The Shenzhen Energy Group Co., Ltd. holds 100% equity in the HONG
without sales restriction, and KONG NAM HOI (INTERNATIONAL) LTD..
between the top 10 shareholders of 2. The company does not know whether the above-mentioned other public
tradable shares without sales shareholders have any association or are persons acting in concert.
restriction and the top 10
shareholders
Description of the participation of
the top 10 shareholders of the
ordinary shares in securities No
lending and borrowing business (in
case) (see Note 4)
Whether the top 10 ordinary shares shareholders and the top 10 non-restricted ordinary shares shareholders of the
Company have engaged in any agreed repurchase transactions during the reporting period
□ Yes No
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The top 10 ordinary shares shareholders and the top 10 non-restricted ordinary shares shareholders of the
Company did not engage in any agreed repurchase transactions during the reporting period.
2. Controlling shareholders of the Company
Nature of controlling shareholder: No controlling subject
Type of controlling shareholder: Not applicable
Statement on the absence of controlling shareholders of the Company
At present, the Company has no controlling shareholders as defined in Article 216 (2) of the Company Law of the
People's Republic of China and Article 15.1(3) of the Listing Rules of Shenzhen Stock Exchange.
Changes in controlling shareholders during the reporting period
□Applicable Not applicable
There was no change in the controlling shareholder of the Company during the reporting period.
3. Actual controllers of the Company and its persons acting in concert
Nature of actual controller: No actual controller
Type of actual controller: Not applicable
Statement on the absence of actual controller of the Company
At present, the Company does not have identification criteria of the actual controller of the listed company as
stipulated in Article 216 (3) of the Company Law of the People's Republic of China, Article 84 of the
Administrative Measures for the Acquisition of Listed Company and Article 15.1 (4) of the Listing Rules of
Shenzhen Stock Exchange.
Whether there are shareholders holding more than 10% of the shares at the ultimate control level of the Company
□ Yes No
The Company has no actual controllers.
Changes in actual controller during the reporting period
□Applicable Not applicable
There was no actual controller during the reporting period.
Block charter of company property and control relationships
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Control of the actual controller through a trust or other asset management method
□Applicable Not applicable
4. The cumulative number of pledged shares held by the controlling shareholder or the largest shareholder
of the Company and its persons acting in concert accounts for 80% of the Company's shares held by them
□Applicable Not applicable
5. Other corporate shareholders holding more than 10% of the shares
Applicable □Not applicable
Legal Main business or
Name of corporate
representative/person Date of establishment Registered capital management
shareholder
in charge activities
HONG KONG NAM
HOI Investment by
Kong Guoliang May 14, 1985 HKD 15.33 million
(INTERNATIONAL) holding shares
LTD.
Establishment of
industries and
Shenzhen Guangju electricity investment
Deng Zhenwu May 31, 1989 RMB 111.11 million
Industrial Co., Ltd. (specific projects
shall be declared
separately)
Development,
production, purchase
Shenzhen Energy RMB 230.971224 and sales of various
Kong Guoliang July 15, 1985 conventional energy
Group Co., Ltd. million
sources (including
electricity, heat, coal,
oil and gas) and new
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energy sources
6. Restrictions on reduction of shares of controlling shareholders, actual controllers, restructuring parties
and other undertaking entities
□Applicable Not applicable
IV. Specific Implementation of Share Repurchase during the Reporting Period
Implementation progress of share repurchase
□Applicable Not applicable
Implementation progress of reducing repurchased shares through centralized competitive bidding
□Applicable Not applicable
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Section VIII Preferred Shares
□Applicable Not applicable
The Company had no preferred shares during the reporting period.
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Section IX Bonds
□Applicable Not applicable
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Section X Financial Report
I. Financial statements
Auditor' Report
LXZLSZ [2023] D-0263
All shareholders of Shenzhen Nanshan Power Co., Ltd.,
I. Opinion
We have audited the accompanying financial statements of Shenzhen Nanshan
Power Co., Ltd. (hereinafter referred to as "Shen Nan Dian"), which comprise the
consolidated and the parent company's balance sheet as at December 31, 2022, the
consolidated and the parent company's income statement, the consolidated and the
parent company's cash flow statement, the consolidated and the parent company's
statement of changes in shareholder's equity for the year then ended, and the notes to
the financial statements.
In our opinion, all significant aspects of the financial statements attached have been
prepared based on the Accounting Standards for Business Enterprises and present fairly
Shen Nan Dian's consolidated and parent company's financial position as at December
31, 2022 and the consolidated and parent company's operating results and cash flows
for the year then ended.
II. Basis for the formation of the opinion
We have carried out the audit in accordance with the Auditing Standards for
Certified Public Accountants of China. “Certified Public Accountants’ Responsibility for
Audit of Financial Statements” in the auditor's report further elaborates on our
responsibility under these standards. In accordance with the Code of Ethics of Certified
Public Accountants in China, we are independent of Shen Nan Dian and have fulfilled
other responsibilities in professional ethics. We believe that our audit evidence is
sufficient and appropriate to provide a basis for our opinions.
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III. Key audit matters
The key audit matters are the matters that, based on our professional judgment, are
considered to be of most significance in the audit of the financial statements of the
current period. These matters are addressed in the context of the audit of the financial
statements as a whole and the formation of an audit opinion, and we do not express an
independent opinion on these matters.
Key audit matters Handling method
(I) Asset impairment
Please refer to the accounting policies describ
ed in Note (XIX) to "III. Important Accounting P
olicies and Accounting Estimates" and Note (X
LVII) to "V. Notes to Items in the Consolidated
Financial Statements" Our audit procedures for asset impairment include:
As at December 31, 2022, the book value of fix 1. Evaluate and test the effectiveness of the design an
ed assets and construction in progress in the c d implementation of internal controls related to ass et i
onsolidated financial statements of Shen Nan mpairment;
Dian totals 596,151,266.47 yuan, accounting fo 2. Select samples to implement supervision procedures
r 22.87% of the total consolidated assets and 5 on assets to understand whether the assets have probl
8.60% of the non-current assets of Shen Nan D ems such as backward process technology, long -term i
ian, which is an important part of the assets of dleness, and low load rate;
Shen Nan Dian. In 2022, the amount of asset i 3. Comprehensively evaluate the qualifications, compet
mpairment loss recognized in the consolidated encies, evaluation methods and parameters used in the
financial statements of Shen Nan Dian is 8,94 evaluation of external appraisers based on their work.
6,433.92 yuan, accounting for 4.82% of the tot
al profit in the consolidated income statement,
which has a significant impact on the operating
results of Shen Nan Dian.
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The management of Shen Nan Dian has evalua
ted whether there is any indication of impairme
nt of the above mentioned assets. If the indicat
ion of impairment is identified, the managemen
t shall conduct an impairment test by calculatin
g the recoverable amount of the individual ass
et or the asset group in which it is located and
comparing the recoverable amount with the bo
ok value.
Since the management of Shen Nan Dian need
s to use significant accounting estimates and j
udgments when determining the expected reco
verable amount of assets, and the impact amo
unt is significant, we have identified asset impa
irment losses as a key audit matter.
(II) Income recognition matters
For details of the accounting policies for incom The audit procedures related to the operating income r
e recognition and analysis, please refer to the ecognition include:
accounting policies described in Note (XXIV) to 1. Evaluate the design and operational effectiveness of
"III. Important Accounting Policies and Accoun the key internal controls related to income recognition;
ting Estimates" and Note (XXXVIII) to "V. Note 2. Select a sample to examine the sales contract, identi
s to Items in the Consolidated Financial Statem fy the contract terms and conditions related to the trans
ents". fer of risks and rewards in the ownership of goods, and
In 2022, the consolidated operating income of evaluate whether the revenue recognition time meets t
Shen Nan Dian was 694,227,657.28 yuan, dow he requirements of the accounting standards for busine
n by 8.31% compared with the previous period. ss enterprises;
As operating income is one of the Company's k 3. Implement substantive analysis procedures for opera
ey performance indicators and there is an inher ting income and gross profit, and judege the reasonabl
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ent risk that the timing of income recognition m eness of changes in operating income and gross profit
ay be manipulated to achieve specific objective margin in the current period;
s or expectations, we identify operating income 4. Select samples from the accounting records of opera
recognition as a key audit matter. ting income and electricity bills to check the authenticit
y and completeness of operating income recognition; C
heck the collection records, select samples to issue lett
ers to confirm the balance of accounts receivable or ad
vances from customers at the end of the period, and co
nfirm the authenticity of the sales business based on th
e collection of accounts receivable after the period;
5. Perform a cut-off test on operating income to assess
whether operating income has been included in the ap
propriate accounting period.
IV. Other information
The management of Shen Nan Dian Power (hereinafter referred to as the
Management) is responsible for other information. Other information includes the
information covered in the relevant documents that constitute the 2022 Annual Report,
but excludes the financial statements and our auditor's report.
Our audit opinion on the financial statements does not cover the other information
and we do not express any form of assurance on the other information.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
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nothing to report in this regard.
V. Responsibilities of the management and the governance for financial
statements
The management is responsible for the preparation and fair presentation of these
financial statements in accordance with the provisions of the Accounting Standards for
Business Enterprises and for such internal control as management determines is
necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to frauds or errors.
In preparing the financial statements, the management is responsible for assessing
the ability of Shen Nan Dian to continue as a going concern, disclosing matters related to
going concern, and applying the going concern assumption, unless the management
plans to liquidate Shen Nan Dian, discontinue operations or has no other realistic
alternative.
Those charged with governance are responsible for supervising the financial
reporting process of Shen Nan Dian.
VI. Certified public accountant’s responsibility for audit of financial
statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to frauds or
errors, and to issue an auditor’s report that includes our opinion. The reasonable
assurance is a high level assurance, but it is not guaranteed that the audit carried out in
accordance with the audit guidelines can always find out material misstatement in the
presence. The misstatement may be caused by frauds or errors. If misstatement alone or
in summary is reasonably expected to affect the economic decision of the users of
financial statements, the misstatement is generally considered to be significant.
In the process of performing the audit in accordance with the auditing standards, we
apply professional judgment and maintain professional doubts. We also:
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(1) Identify and assess the risks of material misstatement of the financial
statements, whether due to frauds or errors, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. Since fraud may involve collusion, forgery, intentional
omission, false representation or not be subject to internal control, failure to find the risk
of material misstatement due to frauds is higher than the risk of failure to find a major
misstatement due to errors.
(2) Understand internal controls related to the audit to design appropriate audit
procedures.
(3) Evaluate the appropriateness of accounting policies adopted by management
and the rationality of accounting estimation and related disclosure.
(4) Conclude on the appropriateness of the management’s use of going concern
basis and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Shen Nan Dian’s
ability to continue as a going concern. If we come to the conclusion that there are
material uncertainties, the audit guidelines require that we draw the attention of the
report users to the relevant disclosures in the financial statements in the audit report. If
the disclosure is not sufficient, we should issue a modified auditor's report. Our
conclusions are based on information available as of the date of the auditor's report.
However, future events or conditions may cause Shen Nan Dian to discontinue
operation.
(5) Evaluate the overall presentation (including disclosures), structure and content of
the financial statements and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient and appropriate audit evidence from the financial information
about the entity or business activities of Shen Nan Dian, to give our opinion on the
financial statements. We are responsible for guiding, supervising and carrying out the
audit over the Group, and assume all responsibilities for our opinion.
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We communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our audit.
We also provide a statement to those charged with governance that we have
obeyed ethical requirements related to independence and communicate with those
charged with governance all relationships and other matters that may reasonably be
believed to affect our independence, and related preventive measures (if applicable).
From the matters communicated with those charged with governance, we determine
those matters that are of most significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditor's report unless laws and regulations prohibit public disclosure of such matters, or
in rare circumstances where the adverse consequences of communicating a matter in
our auditor's report would reasonably be expected to outweigh the benefits in the public
interest, we determine that the matter should not be communicated in the auditor's
report.
LixinZhonglian CPAs (SPECIAL GENERAL PARTNERSHIP) Chinese Certified
Public Accountant:Cao Wei
(Project Partner)
Chinese Certified Public Accountant:Liu Xinfa
Tianjin, China April 4, 2023
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Ⅱ. Financial statements
1. Consolidated balance sheet
Prepared by: Shenzhen Nanshan Power Co., Ltd.
December 31, 2022
Unit: RMB
Item December 31, 2022 January 1, 2022
Current assets:
Cash and cash equivalents 675,496,266.40 689,604,633.59
Settlement provisions
Capital lent
Financial assets held for trading 440,013,571.10 632,874,406.39
Derivative financial assets
Notes receivable
Accounts receivable 135,833,492.64 73,610,161.02
Receivables financing
Advances to suppliers 45,448,287.86 64,415,236.66
Premiums receivable
Reinsurance accounts receivable
Contract reserve of reinsurance
receivable
Other receivables 18,314,003.84 25,841,206.66
Including: interest receivable
Dividends receivable
Financial assets of purchase under
resale agreements
Inventories 85,279,298.35 88,500,991.13
Contract assets 217,009.58 1,040,000.00
Assets held for sale
Non-current assets due within one
year
Other current assets 188,248,840.44 331,868,661.62
Total current assets 1,588,850,770.21 1,907,755,297.07
Non-current assets:
Loans and payments on behalf
Creditors' investments
Other creditors' investments
Long-term receivables
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Long-term equity investments 83,496,098.24 6,986,655.19
Other investments in equity
300,615,000.00 200,615,000.00
instruments
Other non-current financial assets
Investment properties 1,833,344.20 2,009,051.80
Fixed assets 591,290,204.31 643,256,398.30
Construction in process 4,861,062.16 6,088,768.51
Productive biological assets
Oil and gas assets
Right-of-use assets 7,707,617.90
Intangible assets 19,799,355.12 20,465,906.86
Development expenditure
Goodwill
Long-term deferred expenses 1,219,129.18 1,716,460.30
Deferred income tax assets 1,172,366.49 1,109,286.38
Other non-current assets 5,371,398.18
Total non-current assets 1,017,365,575.78 882,247,527.34
Total assets 2,606,216,345.99 2,790,002,824.41
Current liabilities:
Short-term borrowings 879,957,857.44 858,444,163.25
Borrowings from central bank
Capital borrowed
Transactional financial liabilities
Derivative financial liabilities
Notes payable 137,298,902.17 135,025,883.27
Accounts payable 5,227,836.22 6,703,466.71
Advances from customers
Contract liabilities
Financial assets of the sale for
repurchase
Absorbing deposit and interbank
deposit
Security trading of agency
Security sales of agency
Employee compensation payable 29,296,815.07 41,533,020.96
Taxes payable 5,107,666.73 4,145,839.89
Other payables 22,997,466.80 62,678,254.02
Including: interest payable
79
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Dividends payable
Service fee and commission payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within
6,014,119.95
one year
Other current liabilities 21,600.00
Total current liabilities 1,085,922,264.38 1,108,530,628.10
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 28,019,758.68 0.00
Bonds payable
Including: preferred shares
Perpetual bond
Lease liabilities 2,262,160.03
Long-term payables
Long-term employee compensation
payable
Estimated liabilities 15,000,000.00 15,000,000.00
Deferred income 82,145,596.60 88,079,970.09
Deferred income tax liabilities
Other non-current liabilities 47,511.72 50,310.78
Total non-current liabilities 127,475,027.03 103,130,280.87
Total liabilities 1,213,397,291.41 1,211,660,908.97
Owner's equity:
Share capital 602,762,596.00 602,762,596.00
Other equity instruments
Including: preferred shares
Perpetual bond
Capital reserves 362,770,922.10 362,770,922.10
Less: Treasury stock
Other comprehensive income -2,500,000.00 -2,500,000.00
Special reserves
Surplus reserves 332,908,397.60 332,908,397.60
General risk reserves
Undistributed profit 159,187,979.14 319,351,219.81
Total equity attributable to owners of
1,455,129,894.84 1,615,293,135.51
parent company
80
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Minority equity -62,310,840.26 -36,951,220.07
Total owner's equity 1,392,819,054.58 1,578,341,915.44
Total liabilities and owners' equity 2,606,216,345.99 2,790,002,824.41
Legal representative: Kong Guoliang Accounting principal: Chen Yuhui CFO: Zhang Xiaoyin Head of accounting
department: Lin Xiaojia
2. Balance sheet of the parent company
Unit: RMB
Item December 31, 2022 January 1, 2022
Current assets:
Cash and cash equivalents 652,703,545.21 592,751,213.88
Financial assets held for trading 440,013,571.10 622,874,406.39
Derivative financial assets
Notes receivable
Accounts receivable 47,995,982.82 35,966,056.15
Receivables financing
Advances to suppliers 29,715,650.29 60,381,018.05
Other receivables 851,189,111.89 618,436,063.60
Including: interest receivable
Dividends receivable
Inventories 79,504,053.32 79,904,055.96
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 180,501,049.31 321,673,866.15
Total current assets 2,281,622,963.94 2,331,986,680.18
Non-current assets:
Creditors' investments
Other creditors' investments
Long-term receivables
Long-term equity investments 352,171,153.27 287,301,269.81
Other investments in equity
160,615,000.00 60,615,000.00
instruments
Other non-current financial assets
Investment properties
Fixed assets 279,587,315.87 314,308,562.41
Construction in process 1,976,173.28 1,399,062.85
Productive biological assets
81
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Oil and gas assets
Right-of-use assets 7,707,617.90
Intangible assets 193,607.19 247,959.31
Development expenditure
Goodwill
Long-term deferred expenses 1,106,385.13 1,513,521.01
Deferred income tax assets
Other non-current assets
Total non-current assets 803,357,252.64 665,385,375.39
Total assets 3,084,980,216.58 2,997,372,055.57
Current liabilities:
Short-term borrowings 285,705,357.36 458,444,163.25
Transactional financial liabilities
Derivative financial liabilities
Notes payable 737,298,902.17 535,025,883.27
Accounts payable 3,759,009.04 1,280,357.11
Advances from customers
Contract liabilities
Employee compensation payable 18,905,560.54 29,251,444.37
Taxes payable 1,203,569.67 562,233.61
Other payables 170,451,537.10 132,397,663.39
Including: interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within
6,014,119.95
one year
Other current liabilities
Total current liabilities 1,223,338,055.83 1,156,961,745.00
Non-current liabilities:
Long-term borrowings 28,019,758.68
Bonds payable
Including: preferred shares
Perpetual bond
Lease liabilities 2,262,160.03
Long-term payables
Long-term employee compensation
payable
Estimated liabilities
82
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Deferred income 48,978,528.78 52,036,600.90
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 79,260,447.49 52,036,600.90
Total liabilities 1,302,598,503.32 1,208,998,345.90
Owner's equity:
Share capital 602,762,596.00 602,762,596.00
Other equity instruments
Including: preferred shares
Perpetual bond
Capital reserves 289,963,039.70 289,963,039.70
Less: Treasury stock
Other comprehensive income
Special reserves
Surplus reserves 332,908,397.60 332,908,397.60
Undistributed profit 556,747,679.96 562,739,676.37
Total owner's equity 1,782,381,713.26 1,788,373,709.67
Total liabilities and owners' equity 3,084,980,216.58 2,997,372,055.57
Legal representative: Kong Guoliang Accounting principal: Chen Yuhui CFO: Zhang Xiaoyin Head of accounting
department: Lin Xiaojia
83
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3. Consolidated income statement
Unit: RMB
Item 2022 2021
I. Total business income 694,227,657.28 757,175,743.41
Including: operating income 694,227,657.28 757,175,743.41
Interest income
Insurance gained
Income from service fee and
commission
II. Total operating costs 947,345,416.89 996,903,846.83
Of which: operating costs 804,679,323.48 850,260,659.40
Interest expense
Service fee and commission
expenditure
Cash surrender value
Net amount of expense of
compensation
Net amount withdrawn for insurance
liability contract reserves
Bonus expense of guarantee slip
Reinsurance expense
Tax and extras 5,401,350.20 6,281,148.30
Selling and distribution expenses 375,055.78 928,661.79
G&A expenses 79,099,350.54 103,286,926.69
R&D expenses 25,647,534.39 20,933,712.98
Financial expenses 32,142,802.50 15,212,737.67
Including: interest expenses 40,218,036.98 30,629,953.77
Interest income 8,790,975.96 15,728,363.74
Plus: other income 9,333,093.72 7,074,336.60
Investment income (“-”for losses) 70,717,321.61 45,981,085.44
Including: investment income on
3,635,763.05 -1,906,753.67
associates and joint ventures
The termination of income
recognition for financial assets
measured by amortized cost
Exchange income (Loss is listed
with “-”)
Net exposure hedging income (Loss
is listed with “-”)
Income from change of fair value
(Loss is listed with “-”)
84
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Loss of credit impairment (Loss is
-1,711,964.42
listed with “-”)
Losses of devaluation of asset (Loss
-8,946,433.92 -327,479,010.92
is listed with “-”)
Income from assets disposal (Loss is
291,985.88 974,699.74
listed with “-”)
III. Operating profit (Loss is listed
-183,433,756.74 -513,176,992.56
with “-”)
Add: non-operating income 39,600.00 5,261,868.99
Less: non-operating expense 2,191,784.23 248,216.00
IV. Total profit (Loss is listed with “-
-185,585,940.97 -508,163,339.57
”)
Less: income tax expense -63,080.11 1,237,266.58
V. Net profit (Net loss is listed with
-185,522,860.86 -509,400,606.15
“-”)
(I) Classified by business continuity
1. Continuing operation net profit
-185,522,860.86 -509,400,606.15
(net loss is listed with “-”)
2. Net profit from discontinued
operation (net loss is listed with “-”)
(II) Classified by ownership
1. Net profit attributable to
-160,163,240.67 -439,448,712.13
shareholders of the parent company
2. Minority shareholder's profit and
-25,359,620.19 -69,951,894.02
loss
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 that
cannot be reclassified into profit and
loss
1.Changes of the defined benefit
plans that re-measured
2.Other comprehensive income
under equity method that cannot be
transferred to profit and loss
3. Changes in fair value of other
investments in equity instruments
4. Changes in fair value on the credit
risk of the enterprise itself
5. Others
(II) Other comprehensive income to
85
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be reclassified into profit and loss
1. Other comprehensive income that
can be transferred to profit and loss
under equity method
2. Changes in fair value of other
creditors' investments
3. Amount of financial assets
reclassified into other
comprehensive income
4. Provision for credit impairment of
other creditors' investments
5. Cash flow hedging reserve
6. Translation differences arising on
translation of foreign currency
financial statements
7. Others
Net after-tax of other comprehensive
income attributable to minority
shareholders
VII. Total comprehensive income -185,522,860.86 -509,400,606.15
Total comprehensive income
attributable to owners of parent -160,163,240.67 -439,448,712.13
company
Total comprehensive income
-25,359,620.19 -69,951,894.02
attributable to minority shareholders
VIII. Earnings per share
(I) Basic earnings per share -0.2657 -0.7291
(II) Diluted earnings per share -0.2657 -0.7291
Legal representative: Kong Guoliang Accounting principal: Chen Yuhui CFO: Zhang Xiaoyin Head of accounting
department: Lin Xiaojia
4. Profit Statement of Parent Company
Unit: RMB
Item 2022 2021
I. Operating income 423,083,901.93 393,181,803.59
Less: operating costs 454,563,835.47 409,560,912.13
Tax and extras 2,377,366.77 2,649,303.27
Selling and distribution expenses
G&A expenses 25,040,490.15 37,736,990.21
R&D expenses 14,071,545.66 13,090,279.46
Financial expenses -7,205,301.51 -7,412,079.88
Including: interest expenses 29,858,590.98 32,363,377.89
Interest income 38,552,729.42 39,843,733.49
86
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Plus: other income 5,553,834.58 3,610,167.05
Investment income ("-" for losses) 72,910,517.66 47,664,277.47
Including: investment income on
6,208,396.44
associates and joint ventures
Termination of income recognition
for financial assets measured by
amortized cost (Loss is listed with “-
”)
Net exposure hedging income (Loss
is listed with “-”)
Income from change of fair value
(Loss is listed with “-”)
Loss of credit impairment (Loss is
listed with “-”)
Losses of devaluation of asset (Loss
-16,871,485.12 -111,950,707.32
is listed with “-”)
Income from assets disposal (Loss is
-291,564.09 944,667.70
listed with “-”)
II. Operating profit (Loss is listed
-4,462,731.58 -122,175,196.70
with “-”)
Add: non-operating income 10,000.00
Less: non-operating expense 1,539,264.83 163,100.00
III. Total profit (Loss is listed with “-
-5,991,996.41 -122,338,296.70
”)
Less: income tax expense
IV. Net profit (Loss is listed with “-
-5,991,996.41 -122,338,296.70
”)
(I) Continuing operation net profit
-5,991,996.41 -122,338,296.70
(net loss is listed with “-”)
(II) Net profit from discontinued
operation (net loss is listed with “-”)
V. Net after-tax of other
comprehensive income
(I) Other comprehensive income that
cannot be reclassified into profit and
loss
1.Changes of the defined benefit
plans that re-measured
2.Other comprehensive income
under equity method that cannot be
transferred to profit and loss
3. Changes in fair value of other
investments in equity instruments
4. Changes in fair value on the credit
risk of the enterprise itself
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5. Others
(II) Other comprehensive income to
be reclassified into profit and loss
1. Other comprehensive income that
can be transferred to profit and loss
under equity method
2. Changes in fair value of other
creditors' investments
3. Amount of financial assets
reclassified into other
comprehensive income
4. Provision for credit impairment of
other creditors' investments
5. Cash flow hedging reserve
6. Translation differences arising on
translation of foreign currency
financial statements
7. Others
VI. Total comprehensive income -5,991,996.41 -122,338,296.70
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
Legal representative: Kong Guoliang Accounting principal: Chen Yuhui CFO: Zhang Xiaoyin Head of accounting
department: Lin Xiaojia
88
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5. Consolidated statement of cash flows
Unit: RMB
Item 2022 2021
I. Cash flow arising from operating
activities:
Cash received from selling
commodities and providing labor 757,303,689.96 864,329,995.09
services
Net increase of customer deposit and
interbank deposit
Net increase of loan from central
bank
Net increase of capital borrowed
from other financial institution
Cash received from original
insurance contract fee
Net cash received from reinsurance
business
Net increase of insured savings and
investment
Cash received from interest, service
fee and commission
Net increase of capital borrowed
Net increase of returned business
capital
Net cash received by agents in sale
and purchase of securities
Write-back of tax received 330,262,197.76 214,166.34
Other cash received concerning
54,083,544.34 51,426,395.71
operating activities
Sub-total of cash inflows from
1,141,649,432.06 915,970,557.14
operating activities
Cash paid for purchasing
commodities and receiving labor 746,137,912.91 721,294,436.17
service
Net increase of customer loans and
advances
Net increase of deposits in central
bank and interbank
Cash paid for original insurance
contract compensation
Net increase of capital lent
Cash paid for interest, service fee
and commission
89
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Cash paid for bonus of guarantee
slip
Cash paid to/for staff and workers 130,590,587.11 150,735,758.93
Taxes paid 31,947,280.10 26,215,327.00
Other cash paid concerning
25,805,249.68 56,983,337.11
operating activities
Sub-total of cash outflows from
934,481,029.80 955,228,859.21
operating activities
Net cash flows from operating
207,168,402.26 -39,258,302.07
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
120,000,725.39 25,656,458.26
investment
Cash received from investment
57,197,267.13 57,648,950.11
income
Net cash received from disposal of
fixed, intangible and other long-term 1,337,042.66 1,807,866.50
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
investing activities
Sub-total of cash inflows from
178,535,035.18 85,113,274.87
investing activities
Cash paid for purchasing fixed,
3,306,286.80 44,862,987.99
intangible and other long-term assets
Cash paid for investment 100,000,000.00 201,873,680.00
Net increase of mortgaged loans
Net cash received from subsidiaries
and other units obtained
Other cash paid concerning investing
180,009,000.00
activities
Sub-total of cash outflows from
283,315,286.80 246,736,667.99
investing activities
Net cash flows from investing
-104,780,251.62 -161,623,393.12
activities
III. Cash flows arising from
financing activities
Cash received from absorbing
199.92 42,483.00
investment
Including: Cash received from
absorbing minority shareholders’
investment by subsidiaries
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Cash received from loans 1,089,969,116.74 1,061,031,840.80
Other cash received concerning
financing activities
Sub-total of cash inflows from
1,089,969,316.66 1,061,074,323.80
financing activities
Cash paid for settling debts 1,191,887,723.08 909,092,726.75
Cash paid for dividend and profit
15,047,840.81 25,970,397.45
distributing or interest paying
Including: dividends and profits paid
by subsidiaries to minority
shareholders
Other cash paid concerning
27,474,594.34
financing activities
Sub-total of cash outflows from
1,234,410,158.23 935,063,124.20
financing activities
Net cash flows from financing
-144,440,841.57 126,011,199.60
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 469,729.40 -126,143.03
exchange rate
V. Net increase of cash and cash
-41,582,961.53 -74,996,638.62
equivalents
Add: Balance of beginning cash and
689,604,633.59 764,601,272.21
cash equivalents
VI. Balance of ending cash and cash
648,021,672.06 689,604,633.59
equivalents
Legal representative: Kong Guoliang Accounting principal: Chen Yuhui CFO: Zhang Xiaoyin Head of accounting
department: Lin Xiaojia
6. Statement of cash flows of the parent company
Unit: RMB
Item 2022 2021
I. Cash flow arising from operating
activities:
Cash received from selling
commodities and providing labor 719,471,315.94 649,301,148.13
services
Write-back of tax received 321,424,443.28 181,606.65
Other cash received concerning
266,804,943.28 274,118,435.89
operating activities
Sub-total of cash inflows from
1,307,700,702.50 923,601,190.67
operating activities
Cash paid for purchasing
commodities and receiving labor 356,279,013.18 358,851,605.45
service
91
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Cash paid to/for staff and workers 85,583,891.95 109,824,916.40
Taxes paid 13,597,429.91 2,921,107.01
Other cash paid concerning
17,608,551.99 392,790,366.22
operating activities
Sub-total of cash outflows from
473,068,887.03 864,387,995.08
operating activities
Net cash flows from operating
834,631,815.47 59,213,195.59
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
110,000,725.39 25,656,458.26
investment
Cash received from investment
57,194,268.15 57,048,950.11
income
Net cash received from disposal of
fixed, intangible and other long-term 1,337,042.66 1,751,974.50
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning
20,061,163.76
investing activities
Sub-total of cash inflows from
188,593,199.96 84,457,382.87
investing activities
Cash paid for purchasing fixed,
1,639,514.07 41,299,271.44
intangible and other long-term assets
Cash paid for investment 100,000,000.00 72,873,680.00
Net cash received from subsidiaries
559,800.08 118,957,517.00
and other units obtained
Other cash paid concerning investing
342,762,500.00
activities
Sub-total of cash outflows from
444,961,814.15 233,130,468.44
investing activities
Net cash flows from investing
-256,368,614.19 -148,673,085.57
activities
III. Cash flows arising from
financing activities
Cash received from absorbing
investment
Cash received from loans 507,211,616.74 961,031,840.80
Other cash received concerning
13,000,000.00
financing activities
Sub-total of cash inflows from
520,211,616.74 961,031,840.80
financing activities
Cash paid for settling debts 1,011,887,723.08 909,092,726.75
92
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Cash paid for dividend and profit
15,044,841.83 25,970,397.45
distributing or interest paying
Other cash paid concerning
39,068,511.01
financing activities
Sub-total of cash outflows from
1,066,001,075.92 935,063,124.20
financing activities
Net cash flows from financing
-545,789,459.18 25,968,716.60
activities
IV. Influence on cash and cash
equivalents due to fluctuation in 3,994.89 -1,906.92
exchange rate
V. Net increase of cash and cash
32,477,736.99 -63,493,080.30
equivalents
Add: Balance of beginning cash and
592,751,213.88 656,244,294.18
cash equivalents
VI. Balance of ending cash and cash
625,228,950.87 592,751,213.88
equivalents
Legal representative: Kong Guoliang Accounting principal: Chen Yuhui CFO: Zhang Xiaoyin Head of accounting
department: Lin Xiaojia
93
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7. Consolidated statement of changes in owner's equity
Amount for the current period
Unit: RMB
2022
Owners’ equity attributable to the parent Company
Item Other equity instruments Minority Total owner's
Less: Other General
Capital Special Surplus Undistributed equity equity
Share capital Preferred Perpetual Treasury comprehensive risk Others Subtotal
Others reserves reserves reserves profit
shares bond stock income reserves
I. Balance at
-
the end of the 602,762,596.00 362,770,922.10 -2,500,000.00 332,908,397.60 319,351,219.81 1,615,293,135.51 1,578,341,915.44
36,951,220.07
last year
Add: Changes
of accounting
policy
Adjustments
for correction
of accounting
errors in prior
year
Business
combination
under
same control
Others
II. Beginning
balance of -
602,762,596.00 362,770,922.10 -2,500,000.00 332,908,397.60 319,351,219.81 1,615,293,135.51 1,578,341,915.44
the current 36,951,220.07
year
III. Increase/
decrease in
- -
this year -160,163,240.67 -185,522,860.86
160,163,240.67 25,359,620.19
(Decrease is
listed with “-”)
(i) Total
- -
comprehensive -160,163,240.67 -185,522,860.86
160,163,240.67 25,359,620.19
income
(2) Owners’
devoted and
decreased
capital
94
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
1. Ordinary
shares
contributed by
the owner
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with share-
based
payment
4. Others
(III) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or
shareholders)
4. Others
(IV) Internal
carry-forward
of owners'
equity
1. Capital
reserves
conversed to
capital (or
share capital)
2. Surplus
reserves
conversed to
capital (or
share capital)
3. Remedying
loss with
surplus reserve
95
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4. Carry-
forward of
changes in
defined benefit
plans for
retained
earnings
5. Carry-
forward of
other
comprehensive
income to
retained
earnings
6. Others
(V) Special
reserves
1. Withdrawal
in the current 879,946.49 879,946.49 879,946.49
period
2. Usage in the
879,946.49 879,946.49 879,946.49
current period
(VI) Others
IV. Balance at
-
the end of the 602,762,596.00 362,770,922.10 -2,500,000.00 0.00 332,908,397.60 159,187,979.14 1,455,129,894.84 1,392,819,054.58
62,310,840.26
current period
Legal representative: Kong Guoliang Accounting principal: Chen Yuhui CFO: Zhang Xiaoyin Head of accounting department: Lin Xiaojia
96
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Amount for the previous period
Unit: RMB
2021
Owners’ equity attributable to the parent Company
Item Other equity instruments Minority Total owner's
Less: Other General
Special Surplus Undistributed equity equity
Share capital Preferred Perpetual Capital reserves Treasury comprehensive risk Others Subtotal
Others reserves reserves profit
shares bond stock income reserves
I. Balance at
the end of the 602,762,596.00 362,770,922.10 -2,500,000.00 332,908,397.60 758,799,931.94 2,054,741,847.64 33,000,673.95 2,087,742,521.59
last year
Add: Changes
of accounting
policy
Adjustments
for correction
of accounting
errors in prior
year
Business
combination
under
same control
Others
II. Beginning
balance of
602,762,596.00 362,770,922.10 -2,500,000.00 332,908,397.60 758,799,931.94 2,054,741,847.64 33,000,673.95 2,087,742,521.59
the current
year
III. Increase/
decrease in this
- -
year (Decrease -439,448,712.13 -509,400,606.15
439,448,712.13 69,951,894.02
is listed with “-
”)
(I) Total
- -
comprehensive -439,448,712.13 -509,400,606.15
439,448,712.13 69,951,894.02
income
(II) Owners’
devoted and
decreased
capital
1. Ordinary
shares
contributed by
97
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
the owner
2. Capital
invested by
holders of
other equity
instruments
3. Amount
reckoned into
owners equity
with share-
based payment
4. Others
(III) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Withdrawal
of general risk
provisions
3. Distribution
for owners (or
shareholders)
4. Others
(IV) Internal
carry-forward
of owners'
equity
1. Capital
reserves
conversed to
capital (or
share capital)
2. Surplus
reserves
conversed to
capital (or
share capital)
3. Remedying
loss with
surplus reserve
4. Carry-
forward of
changes in
defined benefit
98
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
plans for
retained
earnings
5. Carry-
forward of
other
comprehensive
income to
retained
earnings
6. Others
(V) Special
reserves
1. Withdrawal
in the current
period
2. Usage in the
current period
(VI) Others
IV. Balance at
-
the end of the 602,762,596.00 362,770,922.10 -2,500,000.00 332,908,397.60 319,351,219.81 1,615,293,135.51 1,578,341,915.44
36,951,220.07
current period
Legal representative: Kong Guoliang Accounting principal: Chen Yuhui CFO: Zhang Xiaoyin Head of accounting department: Lin Xiaojia
99
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
8. Statement of changes in owners' equity of the parent company
Amount for the current period
Unit: RMB
2022
Other equity instruments Less: Other
Item Special Undistributed
Share capital Preferred Perpetual Capital reserves Treasury comprehensive Surplus reserves Others Total owner's equity
Others reserves profit
shares bond stock income
I. Balance at the
end of the last 602,762,596.00 289,963,039.70 332,908,397.60 562,739,676.37 1,788,373,709.67
year
Add: Changes of
accounting
policy
Adjustments for
correction of
accounting errors
in prior year
Others
II. Beginning
balance of 602,762,596.00 289,963,039.70 332,908,397.60 562,739,676.37 1,788,373,709.67
the current year
III. Increase/
decrease in this
-5,991,996.41 -5,991,996.41
year (Decrease is
listed with “-”)
(I) Total
comprehensive -5,991,996.41 -5,991,996.41
income
(II) Owners’
devoted and
decreased capital
1. Ordinary
shares contributed
by the owner
2. Capital
invested by
holders of other
equity
instruments
100
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
3. Amount
reckoned into
owners equity
with share-based
payment
4. Others
(III) Profit
distribution
1. Withdrawal of
surplus reserves
2. Distribution for
owners (or
shareholders)
3. Others
(IV) Internal
carry-forward of
owners' equity
1. Capital
reserves
conversed to
capital (or share
capital)
2. Surplus
reserves
conversed to
capital (or share
capital)
3. Remedying
loss with surplus
reserve
4. Carry-forward
of changes in
defined benefit
plans for retained
earnings
5. Carry-forward
of other
comprehensive
income to
retained earnings
6. Others
(V) Special
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reserves
1. Withdrawal in
434,489.58
the current period
2. Usage in the
434,489.58
current period
(VI) Others
IV. Balance at the
end of the 602,762,596.00 289,963,039.70 332,908,397.60 556,747,679.96 1,782,381,713.26
current period
Legal representative: Kong Guoliang Accounting principal: Chen Yuhui CFO: Zhang Xiaoyin Head of accounting department: Lin Xiaojia
102
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
Amount for the previous period
Unit: RMB
2021
Other equity instruments Less: Other
Item Special Undistributed Total owner's
Share capital Preferred Perpetual Capital reserves Treasury comprehensive Surplus reserves Others
Others reserves profit equity
shares bond stock income
I. Balance at the
end of the last 602,762,596.00 289,963,039.70 332,908,397.60 685,077,973.07 1,910,712,006.37
year
Add: Changes
of accounting
policy
Adjustments for
correction of
accounting
errors in prior
year
Others
II. Beginning
balance of 602,762,596.00 289,963,039.70 332,908,397.60 685,077,973.07 1,910,712,006.37
the current year
III. Increase/
decrease in this
year (Decrease -122,338,296.70 -122,338,296.70
is listed with “-
”)
(I) Total
comprehensive -122,338,296.70 -122,338,296.70
income
(II) Owners’
devoted and
decreased
capital
1. Ordinary
shares
contributed by
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Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
the owner
2. Capital
invested by
holders of other
equity
instruments
3. Amount
reckoned into
owners equity
with share-
based payment
4. Others
(III) Profit
distribution
1. Withdrawal
of surplus
reserves
2. Distribution
for owners (or
shareholders)
3. Others
(IV) Internal
carry-forward of
owners' equity
1. Capital
reserves
conversed to
capital (or share
capital)
2. Surplus
reserves
conversed to
capital (or share
capital)
3. Remedying
loss with
surplus reserve
4. Carry-
104
Full Text of Annual Report 2022 of Shenzhen Nanshan Power Co., Ltd.
forward of
changes in
defined benefit
plans for
retained
earnings
5. Carry-
forward of other
comprehensive
income to
retained
earnings
6. Others
(V) Special
reserves
1. Withdrawal
in the current
period
2. Usage in the
current period
(VI) Others
IV. Balance at
the end of the 602,762,596.00 289,963,039.70 332,908,397.60 562,739,676.37 1,788,373,709.67
current period
Legal representative: Kong Guoliang Accounting principal: Chen Yuhui CFO: Zhang Xiaoyin Head of accounting department: Lin Xiaojia
105
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements off 2022
(Unless otherwise stated, the amount of unit is RMB/CNY)
I. Company profile
(I) 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 November 25, 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 Zheng Ban Fu [1993] No.179 issued by Shenzhen Securities
Regulatory Office, on January 3, 1994, the Company offered 40,000,000 RMB ordinary
shares and 37,000,000 domestically listed foreign shares in and out of China. And the
RMB ordinary 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 is located on 16/F, 17/F, Han Tang Building, OCT, Nanshan District,
Shenzhen City, Guangdong Province, P.R.C.
This financial statements will be approved by the Company's Board of Directors for publication on
April 4, 2023.
(ii) Scope of financial statements
(I) There are 9 subsidiaries included in the scope of consolidated financial statements of the
Company in the current period, including:
Shareholding
Name of subsidiary Note
ratio%
Shen Nan Dian (Zhongshan) Electric Power Co., Ltd.
80.00
(“Zhongshan Electric Power”)
Shenzhen Shennandian Turbine Engineering Technology Co.,
100.00
Ltd. (“Engineering Company”)
Shenzhen Shen Nan Dian Environment Protection Co., Ltd.
100.00
(“Environment Protection Company”)
Shenzhen Server Petrochemical Supplying Co., Ltd.
50.00
(“Shenzhen Server”)
Shenzhen New Power Industrial Co., Ltd. ("New Power”) 100.00
Shen Nan Energy (Singapore) Co., Ltd. (“Singapore
100.00
Company”)
Hong Kong Syndisome Co., Ltd. (“Syndisome”) 100.00
Zhongshan Shen Nan Dian Storage Co., Ltd. (“Shen
80.00
Storage”)
Zhuhai Hengqin Zhuozhi Investment Partnership (Limited
99.96
Partnership) (“Zhuhai Hengqin”)
For details of the scope of the consolidated financial statements and the changes thereof, please
refer to VI. Changes of Consolidation Scope and VII. Equities in Other Entities.
II. Basis for preparation of financial statements
Notes to Financial Statement Page1
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
（I）Basis of Preparation
The Company’s financial statements have been prepared based on the continuing operation 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.
(II) Continuing operation
The Company is capable of continuing operation 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 accounting estimates
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 income recognition pursuant to relevant business
accounting principles. Details are set out in (24) Income under Note III.
(I) Statement on observation of Accounting Standards for Business Enterprises
The financial statements of the Company comply with the requirements of ASBE issued by the
Ministry of Finance, and present a true and complete view of the consolidated and parent
company’s financial status as of December 31, 2022 and the consolidated and parent company’s
operation results and cash flow for the year of 2022.
(II) Accounting period
A fiscal year shall be from January 1 to December 31 of the Gregorian calendar.
(III) 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.
(IV) Book-keeping standard currency
The book-keeping standard currency of the Company is RMB (CNY).
(V) Accounting treatment method of business combination under the same control and
under the different control
Business combination under the same control: The assets and liabilities obtained by the combining
party in business 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 book value of the net
assets obtained and the book value 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.
Business 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 business 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 profits/losses after double-
check.
Notes to Financial Statement Page2
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
The directly relevant fees incurred in the merger of enterprises shall be reckon into the
current profits/losses when incurred; the transaction costs of issuing equity securities or debt
security for the purpose of business combination should be reckon into the initial recognition of
equity security or debt security.
(VI) Preparation methods for consolidated financial statements
1. Scope of consolidation
The consolidation scope of the consolidated financial statements is determined on the basis of
control and includes the Company and all its subsidiaries.
2. Consolidation 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 of subsidiaries or businesses
During the reporting period, if a subsidiary or business is added due to a business combination
under the same control, adjust the opening balance of the consolidated balance sheet; incorporate
the income, expenses, and profits of the subsidiary or business combination from the beginning of
the current period to the end of the reporting period into the consolidated income
statement; incorporate the cash flows of the subsidiary or business combination from the
beginning of the current period to the end of the reporting period into the consolidated cash flow
statement, and adjust the relevant items of the comparative statement as if the consolidated
reporting entity had been existing since the time when the ultimate controlling party began
controlling.
Where it is possible to exercise control over an investee under the same control due to additional
investment, all parties participating in the combination are deemed to have adjusted in their
current state when the ultimate controlling party commenced control. The equity investment held
before the control of the combined party is obtained, the relevant profit or loss and other
comprehensive income that have been confirmed between the date of acquisition of the original
equity and the date on which the combining party and the combined party are under the same
control until the combining date, as well as other changes in net assets respectively write down the
retained earnings at the beginning of period or the current profits and losses in the comparative
statements.
Notes to Financial Statement Page3
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
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
① General treatment methods
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
calculated since purchased date (or combination date) and sum of consideration obtained by equity
disposal and fair value of remain equity, reckoned into the current investment income of control
rights loss. Other comprehensive income related to the original subsidiary's equity investment or
other changes in owner's equity other than net profit and loss, other comprehensive income and
profit distribution will be converted to current investment income when the control is lost, except
for other comprehensive income arising from the remeasurement of the net liabilities or changes in
net assets of the defined benefit plan of the investee.
If other investors’ capital increases in the subsidiary results in a decline in the Company's
shareholding ratio and thus loss of control power, accounting shall be conducted in accordance
with the above principles.
② Disposal of subsidiaries by stages
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 another 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
Notes to Financial Statement Page4
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
lost; however, the different between the amount of disposal prior to the loss of control and the net
assets of a subsidiary attributable to the disposal investment shall be recognized as other
comprehensive income in consolidated financial statements and transferred to profit or loss for the
period at the time when the control is lost.
If the transactions that dispose of the equity investment in the subsidiary until the loss of control
do not belong to the package transaction, before the loss of control, the relevant policies for partial
disposal of the equity investment in the subsidiary shall be accounted for without losing
control. When the control right is lost, the accounting treatment shall be carried out according to
the general treatment method for disposing of the subsidiary.
(3) Purchase of minority shares in subsidiaries
The difference between the Company's newly acquired long-term equity investment due to the
purchase of minority shares and the net assets share calculated continuously by the subsidiary
from the date of purchase (or merger date) in accordance with the calculation of the newly
increased shareholding ratio, adjust the equity premium in the capital reserve in the consolidated
balance sheet, if the equity premium in the capital reserve is insufficient to offset, adjust the
retained earnings.
(4) Partial disposal of equity investments on subsidiaries without loss of 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.
(VII)Classification of joint venture arrangements and accounting treatment method
Joint venture arrangements is divided into joint operation and joint ventures.
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 income 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.
(VIII)Determination criteria of cash and cash equivalent
While preparing the cash flow statement, the stock cash and savings available for payment at any
time are recognized as cash. The investments meets the follow four conditions at the same time
are recognized as cash equivalent, that is short-term (normally fall due within three months from
the date of acquisition) and highly liquid investments held the Group which are readily convertible
into known amounts of cash and which are subject to insignificant risk of value change.
(IX)Foreign currency business and foreign currency statement translation
1. Foreign currency business
Notes to Financial Statement Page5
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
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.
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.
(X) Financial instruments
Financial instrument consist of financial assets, financial liability and equity instrument.
1. Classification of financial instruments
Based on the Company's business model for managing financial assets and the contractual cash
flow characteristics of financial assets, financial assets are classified as the financial assets
measured at amortized cost, the financial assets (debt instruments) measured at fair value and
whose changes are included in other comprehensive income and the financial assets measured at
fair value and whose changes are included in current profit and loss at initial recognition.
Business model to collect the contractual cash flow, and the contractual cash flow is only the
payment of the principal and the interest based on the outstanding principal amount, is classified
as a financial asset measured at amortized cost; business model to collect the contractual cash
flow and sell the financial asset, and the contractual cash flow is only the payment of principal and
the interest based on the outstanding principal amount, is classified as a financial asset measured
at fair value and whose changes are included in other comprehensive income (debt
instruments); other financial assets other than these are classified as financial assets measured at
fair value and whose changes are included in the current profit and loss.
For a non-tradable equity instrument investment, the Company determines at the time of initial
recognition whether to designate it as a financial asset (equity instrument) measured at fair value
and whose changes are included in other comprehensive income.
At the time of initial recognition, 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).
2. Recognition basis and measurement method of financial instruments
Notes to Financial Statement Page6
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
(1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include bills receivable, accounts receivable, other
receivables, long-term receivables, debt investment, etc., which are initially measured at fair
value, and related transaction costs are included in the initially recognized amount; accounts
receivable excluding significant financing components and accounts receivable with financing
components not exceeding one year that the Company decides not to consider are initially
measured at the contract transaction price.
The interest calculated by using the effective interest method during the holding period is included
in the current profit and loss.
When taking back or disposing, the difference between the cost obtained and the book value of the
financial asset is included in the current profit and loss.
(2) Financial assets (debt instrument) measured at fair value and whose changes are reckoned into
other comprehensive income
The financial assets (debt instrument) measured at fair value and whose changes are reckoned into
other comprehensive income consist of receivable financing and other debt investment and
initially measured at fair value, relevant transaction fees are included in initial recognized
amount. The financial assets are subsequently measured at fair value, and the fair value changes
are reckoned into other comprehensive income except for the interest, impairment loss or gain and
exchange profits and losses calculated by actual interest rate method.
Upon termination of the recognition, the accumulated profits and 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 financial assets are subsequently measured at fair value,
and the fair value changes are reckoned into other comprehensive income.
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 profits/losses
The financial assets measured at fair value and whose changes are reckoned into
current profits/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 profits/losses. The financial assets are subsequently measured at fair value,
and the fair value changes are reckoned into current profits/losses.
(5) Financial liability measured at fair value and whose changes are reckoned into
current profits/losses
The financial liability measured at fair value and whose changes are reckoned into
current profits/losses consist of trading financial liability and derivative financial liability etc. and
initially measured at fair value, relevant transaction fees are included in current profits/losses. The
financial liabilities are subsequently measured at fair value, and the fair value changes are
reckoned into current profits/losses.
Upon termination of the recognition, the difference between its book value and the consideration
paid is included in the current profits/losses.
(6) Financial liability measured at amortized cost
The financial liabilities measured at amortized cost consist of short-term loans, note payable,
Notes to Financial Statement Page7
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
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 interest calculated by using the effective interest method during the holding period is included
in the current profit and loss.
Upon termination of the recognition, the difference between consideration paid and the book value
of financial liability is reckoned into current profits/losses.
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
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 book value 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 book value 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 book value of the portion on the date of the termination of recognition.
2) The sum of the consideration received from the portion of which the recognition is
Notes to Financial Statement Page8
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
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.
4. Derecognition criteria of financial liabilities
Where the current obligation of a financial liability have been discharged in whole or in part, the
recognition of the financial liability or part thereof shall be terminated; if the Company entered
into an agreement with its creditors to replace its existing financial liabilities with the new
financial liability, and the contract terms of the new financial liabilities and the existing financial
liabilities are substantially different, the existing financial liabilities shall be terminated for
recognition and the new ones shall be recognized at the same time.
As for substantive changes made to the contract terms (in whole or in part) of the existing
financial liabilities, the existing financial liabilities (or part of it) will be terminated for
recognition, and the financial liabilities after term revision will be recognized as a new financial
liability.
When a financial liability is derecognized in whole or in part, the difference between the book
value of the financial liability derecognized and the consideration paid (including the non-cash
assets transferred out or the new financial liabilities assumed) is included in the current profit and
loss.
If the Company repurchases part of the financial liabilities, the entire book value of the financial
liabilities will be allocated on the repurchase date according to the relative fair value of the
continuing recognition part and the derecognition part. The difference between the book value
allocated to the derecognition part and the consideration paid (including the transferred non-cash
assets or assumed new financial liabilities) is included in the current profit and loss.
5. Methods for determining the fair value of financial assets and financial liabilities
For financial instruments that have an active market, their fair values are determined by using
quotes in the active market. For financial instruments that do not have an active market, valuation
techniques are used to determine their fair values. In the valuation, the Company adopts valuation
techniques that are applicable under the current circumstances and have sufficient available data
and other information support, chooses the input values consistent with the characteristics of
assets or liabilities considered by market participants in the transactions of related assets or
liabilities, and prioritizes the relevant observable input values. The Company uses unobservable
input values only if the relevant observable input values cannot be obtained or are not practicable.
6. Test methods and accounting treatment methods for impairment of financial assets
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 returned 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
Notes to Financial Statement Page9
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
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.
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. 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.
(1) Notes receivable
Name of portfolio Methods of measuring credit losses
For notes receivable classified as bank acceptance
Bank acceptance bill of state-owned portfolio, the management appraises that such payments
banks have low credit risks and low expected credit loss rate, and
should make no provision for impairment.
(2) Accounts receivable
Name of portfolio Methods of measuring credit losses
Electricity transaction receivable Accounts receivable classified as electricity transactions,
project operation and maintenance and
Receivables for project operation and
environmental protection services; Regarding accounts
maintenance
receivable divided into power transactions, engineering
operation and maintenance, and environmental protection
services, referring to historical credit loss experience, and
combined with current conditions and forecasts of future
Receivables for economic conditions, the management evaluates that such
environmental protection services payments have low credit risk and low expected credit loss
rate, so no impairment provision is made; unless there is
evidence that the credit risk of a certain receivable is
relatively large.
Notes to Financial Statement Page10
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
(3) Other receivables
Name of portfolio Methods of measuring credit losses
Combination of the export tax rebate,
VAT rebate upon levy The company classifies the payments, tax refunds
Portfolio of deposit, security deposit receivable, and collection and withholding payments from
and reserve fund subsidiaries within the scope of accounts receivable
Other receivables and temporary consolidation that have no significant recovery risks into
other portfolios, and no provision for bad debts is made.
payments except for the above
portfolios
(4) Receivables financing
Name of portfolio Methods of measuring credit losses
Bank acceptance bill of banks with With reference to historical credit loss experience,
lower credit risk rating combined with current conditions and forecasts of future
economic conditions, the expected credit loss is calculated
Trade acceptance through the default risk exposure and the expected credit
loss rate of the entire duration.
(XI) Inventories
1. Classification of inventories
Inventories mainly include fuel, raw materials, etc.
2. Valuation method of delivered inventory
The inventories are valued on a weighted average basis at the time of delivery.
3. Basis for determining the net realizable value of different types of inventories
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. 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. 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.
4. Inventory system
The perpetual inventory system is adopted.
5. Amortization method of low-value consumables and packaging
Notes to Financial Statement Page11
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
(1) Low-value consumables - one pass method;
(2) Packaging - one pass method
(XII) Contract assets
The Company's unconditional (that is, only depending on the time lapses) right to collect
consideration from customers are separately listed as receivables. 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.
(XIII) Long-term equity investments
1. Judgement criteria for joint control and significant influence
Joint control is the Company’s contractually agreed sharing of control over an arrangement, which
relevant activities of such arrangement must be decided by unanimously agreement from parties
who share control. Where the Company and other joint ventures exercise joint control over the
investee and enjoy the rights to the net assets of the investee, the investee is a joint venture of the
Company.
Significant influence is the right of the Company to participate in the financial and operation
decision-making of an enterprise, but not to control or jointly control the formulation of such
policies with other parties. Where the Company is able to exert significant influence on the
investee, the investee shall be a joint venture of the Company.
2. Determination of initial investment cost
(1) Long-term equity investment formed by business combination
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. 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. 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.
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 investments obtained by other means
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
Notes to Financial Statement Page12
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
evidence that the fair value of the assets swapped in is more reliable; for non-monetary assets
exchange that do not meet the above preconditions, the book value of the assets swapped out and
the relevant taxes and fees payable are used as the initial investment cost of the long-term equity
investment swapped in.
For a long-term equity investment obtained through debt restructuring, its entry value is
determined based on the fair value of the abandoned creditor's rights and other costs such as taxes
directly attributable to the asset, and the difference between the fair value of the abandoned
creditor's rights and the book value is included in the current profit and loss.
3. Follow-up measurement and profits/losses recognition
(1) Long-term equity investment measured at cost
The long-term equity investment in subsidiaries shall be measured at cost. In addition to the
actual prices or the announced but yet undistributed cash dividend or profit in consideration
valuation, the current investment return is recognized by the announced cash dividend or profit by
the invested units.
(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 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 the share of fair value of the invested entity’s
identifiable net assets, the difference shall reckoned in current profits/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 book value of long-term equity investment shall be
adjusted. The book value of long-term equity investment shall be reduced based on the Group’s
share of profit or cash dividend distributed by the investee. The share of net profit or loss
attributable to the investees shall be recognized based on the fair value of the investees’
identifiable net assets at the time of acquisition and after adjusting the net profit of the investees
according to the Company's accounting policies and accounting period.
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 investments
In case of disposal of long-term equity investments, the difference between the book value and the
actual 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
Notes to Financial Statement Page13
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
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 investees, it
shall be accounted for using the recognition and measurement standard of financial instruments.
The difference between its fair value and book value as at the date of losing control shall be
included in profit or loss for the current period.
The disposed equity is obtained through business combination due to additional investment and
other reasons, when preparing individual financial statements, if the remaining equity after
disposal uses cost method or equity method for accounting, the equity investments held before the
acquisition date shall be carried forward in proportion to other comprehensive income and other
owner's equity recognized through equity method accounting; for the remaining equity interest
after disposal accounted for using the recognition and measurement standard of financial
instruments, other comprehensive income and other owners’ equity shall be fully transferred.
(XIV) Investment properties
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.
(XV)Fixed assets
1.Recognition conditions for the fixed assets
Fixed assets are 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.
2. Depreciation method
The depreciation of fixed assets is calculated and accrued by the straight-line
Notes to Financial Statement Page14
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
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:
Depreciati Depreciation period ( Residuals rate Annual depreciation
Category
on method year) (%) rate (%)
Straight-
Houses and buildings line 20 years 10 4.5
method
Machinery and
equipment - gas Workload
10
turbine generator unit method
(note)
Machinery and
Straight-
equipment (except
line 15-20 years 10 4.5-6
gas turbine generator
method
unit)
Straight-
Means of transport line 5 years 10 18
method
Straight-
Others line 5 years 10 18
method
Note: the gas turbine generator unit is provided with depreciation under workload method, namely
to determine the depreciation amount per hour of gas turbine generator unit based on equipment
value, predicted net remaining value and predicted generation hours. Details are set out as
follows:
Name Fixed assets Depreciation amount (RMB/hour)
Generator unit #1 538.33
The Company
Generator unit #3 601.21
New Power Generator unit #10 520.61
Generator unit #1 960.34
Zhongshan Electric Power
Generator unit #3 837.29
(XVI)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
Notes to Financial Statement Page15
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
according to the actual cost after completing the final accounts, but not adjust the original accrued
depreciation amount.
(XVII)Borrowing costs
1. Recognition principle of capitalization of borrowing costs
Borrowing costs include interest, amortization of discounts or premiums related to borrowings,
ancillary costs incurred in connection with the arrangement of borrowings, and exchange
differences arising from foreign currency borrowings.
If the borrowing costs incurred by the Company can be directly attributed to the acquisition,
construction or production of assets eligible for capitalization, they shall be capitalized and
included in the cost of relevant assets; other borrowing costs 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 costs 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) The borrowing costs have occurred;
(3) The acquisition, construction or production activities necessary for the assets to reach the
intended usable or saleable state have begun.
2.Period of capitalization of borrowing costs
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.
3. 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.
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
Notes to Financial Statement Page16
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
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.
(XVIII)Intangible assets
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
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) Subsequent measurement
The service life of intangible assets are analyzed and judged on acquisition.
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.
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.
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.
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.
Notes to Financial Statement Page17
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
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.
(XIX)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 book value, 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.
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.
(XX)Long-term deferred expenses
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Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
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.
(XXI)Contract 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.
(XXII)Employee compensation
1.Accounting treatment method of 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.
2. Accounting treatment method of 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.
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.
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Notes to Financial Statements of 2022
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 carried 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.
3. Accounting treatment method of dismission welfare
When the Company cannot unilaterally withdraw the dismission welfare 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 dismission welfare (the earlier
of the two), recognize employee compensation liabilities arising from dismission welfare and
include in the current profit and loss.
(XXIII) Estimated liabilities
1. Recognition criteria of estimated liabilities
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 obligation is a current obligation undertaken by the Company;
(2) The performance of such obligation is likely to result in outflow of economic benefits from the
Company;
(3) The amount of the obligation can be measured reliably.
2. Methods of measurement of various estimated liabilities
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.
(XXIV) Income
General principles
The Company recognizes the income when it has fulfilled its performance obligations in the
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Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
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.
For a performance obligation that meets one of the following conditions and is performed within a
certain period of time, the Company recognizes income 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 income 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 income is most unlikely to be materially
returned 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
For the consideration payable to customers, the Company offsets the transaction price from the
consideration payable to the customer, and offsets the current income at the time point of the later
when the relevant income 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 income 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
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Notes to Financial Statements of 2022
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
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 income is recognized as a
performance obligation performed within a certain period of time; otherwise, the
relevant income is recognized as a performance obligation performed at a certain point in time:
(I) Contract requirements or customers can reasonably expect that the enterprise will engage in
activities that have a significant impact on the intellectual property rights;
(II) The activity will have a favorable or unfavorable impact on customers;
(III) The activity will not result in the transfer of a certain commodity to the customer.
After-sale repurchase transaction
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Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
For after-sales repurchase transactions, the Company distinguishes the following two situations for
accounting treatment:
(I) 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 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 income is recognized at the same time.
(II) 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 income 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 income 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 costs not to be returned
The initial cost 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 cost is related to the transfer of the promised goods to the
customer. If the initial cost 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 cost 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 cost 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 cost that does not need to be refunded and should carry out
initial activities to perform the contract, but these activities do not transfer the promised goods to
the customer, the initial cost is related to the goods promised to be transferred in the future, and
should be recognized as income 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 income when it has fulfilled its performance obligations in the
contract, that is, when the customer has obtained control of the relevant goods or
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Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
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.
(1) Income from commodity sales
The sales contract between the Company and the customers usually only contains the performance
obligation for the transferred goods. The Company usually recognizes income 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.
Income from sales of electricity
The Company produces electricity through firepower and realizes sales through integration into
Guangdong Power Grid. For electricity sales, the Company recognizes the realization
of income 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 income 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) 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 income at
the point when the customer obtains control of the relevant goods or services.
①Recognition standards of income from labor services provided by Environment Protection
Company:
The company recognizes income based on the obtained sludge treatment settlement statement
jointly confirmed with the transportation company, the water purification unit, and the Company.
②Specific standards for income recognition of Engineering Company:
Commissioning projects: when the commissioning is successful, obtain the confirmation of
successful commissioning, and recognize the income according to the contract; Operation and
maintenance, management projects: monthly income is temporarily estimated and recognized
based on attendance time and labor prices of attendants, and the temporary estimated income will
be adjusted after obtaining the monthly statement confirmed by the supplier's stamp and signature,
the progress confirmation letter, and the attendance sheet.
(XXV) Contractual costs
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
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Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
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.
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
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 returned and included in the current profit and loss, but the book value of the asset after
the return shall not exceed the book value of the asset on the date of return under the assumption
that no impairment provision is made.
(XXVI)Government subsidies
1. Type
Government subsidies refer 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.
Asset-related government subsidy refers to government subsidies obtained by the Company for
purchase and construction or to form long-term assets in other ways. Income-related government
subsidy refers to government subsidies other than asset-related government subsidy.
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.
3. Accounting treatment
Assets-related government subsidy 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
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;
Income-related government subsidies are recognized as deferred income and included in current
profit and loss (other income if they are related to routine activities or non-operating income if
they are not related to routine activities) or used to offset them. those used to compensate the
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Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
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.
(XXVII)Deferred income tax assets and deferred income tax liabilities
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
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 returned, 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.
(XXVIII) Lease
A lease 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.
1. The Company as lessee
The Company recognizes the right-of-use assets at the beginning of the lease period 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-
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Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
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.
2. The Company as lessor
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) Financing 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.
(XXIX) Special reserves
The group includes the work safety costs in the profit and loss of related products or cost in the
current period in the account of "special reserves" at the same time. When the group uses the
special reserves, if it belongs to the expenses, the special reserves shall be offset directly; where
fixed assets are formed, they shall be recognized as fixed assets when the relevant assets reach the
working condition for their intended use; At the same time, the special reserves are offset
according to the cost of formed fixed assets and the accumulated depreciation of the same amount
is recognized. Depreciation of such fixed assets will not be made in later period.
(XXX) Changes of major accounting policies and accounting estimates
1. Change of major accounting policies
No change of major accounting policies occurred in the reporting period.
2. Change of major accounting estimates
No change of major accounting estimates occurred in the reporting period.
IV Taxes
(I) Main tax category and tax rate
Tax category Tax basis Tax rate
Output VAT is calculated based on sales of goods and
taxable service income calculated according to the
13%, 9%, 6%,
VAT provisions of the tax law, and the difference is be
5%, 3%
the VAT payable after deducting the input VAT
deductible in the current period
According to the actual payment of VAT and
City maintenance tax 7%
consumption tax
According to the actual payment of VAT and
Education surtax 3%
consumption tax
According to the actual payment of VAT and
Local education surtax 2%
consumption tax
Corporate income tax According to the taxable income amount 25%, 15%,
Notes to Financial Statement Page27
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Tax category Tax basis Tax rate
16.5%, 17%
2 ~ 8 Yuan per square meter of the actual occupied is for
the industrial land located in Nanshan District, Shenzhen
Land-use tax of town
City; 1 Yuan per square meter of the actual occupied is
for the industrial land located in Zhongshan City
(II)Explanation of the income tax rate of the taxpayer of corporate income tax
Name of taxpayer 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%
(III) Preferential tax policies and basis
1. Preferential policies for corporate income tax:
(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. Preferential policies for VAT:
Tax
Relevant regulations Approval Approval Exemption Period of
category Name
and policy basis authority No. range validity
VAT Environ Notice on Contents of Shenzhen SQSST [201 Resource Aug. 01,
ment Products with Provincial 8] No.: comprehen 2020 to
Notes to Financial Statement Page28
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Tax
Relevant regulations Approval Approval Exemption Period of
category Name
and policy basis authority No. range validity
Protecti Comprehensive Office, SAT 18302 sive Jul.
on Utilization of Resources (Qianhai utilization 31, 2023
Compan and Value-Added Tax SAT) of VAT
y Privilege of Labor refund
Service (CS No. [2015]
78)
Announcem
Administrative VAT
Shenzhen ent of the
Enginee Measures on VAT exemption
Provincial State
ring Exemption for Cross- for cross-
VAT Office, SAT Taxation
Compan border Taxable Acts border
(Qianhai Administrati
y with VAT Replaced by taxable
SAT) on [2016]
Business Tax activities
No. 29
V. Notes of the items in consolidated financial statements
(I) Cash and cash equivalents
Balance at the end of last
Item Ending balance
year
Cash on hand 37,698.63 35,963.95
Bank savings 647,983,965.23 456,715,650.80
Other cash and cash equivalents 27,474,602.54 232,853,018.84
Total 675,496,266.40 689,604,633.59
Including: total amount saving aboard 6,016,949.57 51,205,621.70
The cash and cash equivalents that are restricted to use due to mortgage, pledge or freezing, and
are placed overseas and the repatriation of funds are restricted are as follows:
Balance at the end of last
Item Ending balance
year
Margin of bank acceptance bills 27,474,594.34
Total 27,474,594.34
(II) Financial assets held for trading
Balance at the end of last
Item Ending balance
year
Financial assets measured by fair value
and with variation reckoned into current 440,013,571.10 560,000,726.39
profits/losses
Including: debt instrument investment
equity instrument investment
Derivative financial assets
Notes to Financial Statement Page29
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Balance at the end of last
Item Ending balance
year
Others 440,013,571.10 560,000,726.39
Designated as financial assets measured
by fair value and with variation reckoned 72,873,680.00
into current profits/losses
Including: debt instrument investment
equity instrument investment 72,873,680.00
Total 440,013,571.10 632,874,406.39
(III) Accounts receivable
1. Accounts receivable disclosed by aging
Balance at the end of last
Aging Ending balance
year
Within 1 year (inclusive) 103,306,168.76 73,610,161.02
1 to 2 (inclusive) years 34,239,288.30
2 to 3 (inclusive) years
Over 3 years 5,558,673.67 5,558,673.67
Subtotal 143,104,130.73 79,168,834.69
Less: provision for bad debts 7,270,638.09 5,558,673.67
Total 135,833,492.64 73,610,161.02
2. Accounts receivable disclosed by provision method for bad debts by category
Ending balance
Book balance Provision for bad debts
Category
Accrual Book value
Amount Ratio (%) Amount
proportion (%)
Accounts
receivable with
5,558,673.67 3.88 5,558,673.67 100.00
single provision for
bad debts
Provision for bad
debts by
137,545,457.06 96.12 1,711,964.42 1.24 135,833,492.64
combination of risk
characteristics
Including: low-risk
137,545,457.06 96.12 1,711,964.42 1.24 135,833,492.64
portfolio
Total 143,104,130.73 100.00 7,270,638.09 5.08 135,833,492.64
Category Balance at the end of last year
Notes to Financial Statement Page30
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Book balance Provision for bad debts
Accrual Book value
Amount Ratio (%) 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
73,610,161.02 92.98 73,610,161.02
combination of risk
characteristics
Including: low-risk
73,610,161.02 92.98 73,610,161.02
portfolio
Total 79,168,834.69 100.00 5,558,673.67 7.02 73,610,161.02
Accounts receivable with single provision for bad debts
Ending balance
Name Book Provision for Accrual
Causes
balance bad debts proportion (%)
Shenzhen Petrochemical Products Uncollectible
3,474,613.06 3,474,613.06 100.00
Bonded Trading Co., Ltd. as excepted
China Solibase Engineering Co., Uncollectible
1,137,145.51 1,137,145.51 100.00
Ltd. as excepted
Uncollectible
Shenzhen Fuhuade Power Co., Ltd 800,000.00 800,000.00 100.00
as excepted
Uncollectible
Others 146,915.10 146,915.10 100.00
as excepted
Total 5,558,673.67 5,558,673.67 100.00
3. Provision for bad debts accrued, returned or recovered in the current period
Current amount changed
Balance at the
Category Reversed or Returned or Ending balance
end of last year Others
recovered recovered
Accounts
receivable with
5,558,673.67 5,558,673.67
single provision
for bad debts
Provision for bad
debts by
combination of 1,711,964.42 1,711,964.42
risk
characteristics
Total 5,558,673.67 1,711,964.42 7,270,638.09
4. Top 5 receivables at ending balance by arrears party
Notes to Financial Statement Page31
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Balance of
Ratio in the
provision for
balance of
Name of organization Book balance bad debts at
accounts
the end of the
receivable (%)
year
1st place 70,059,736.37 48.96 1,711,964.42
2nd place 47,995,982.82 33.54
3rd place 12,955,221.87 9.05
fourth place 6,420,000.00 4.49
5th place 3,474,613.06 2.42 3,474,613.06
Total 140,905,554.12 98.46 5,186,577.48
(IV)Advances to suppliers
1.Advances to suppliers classified according to age
Ending balance Balance at the end of last year
Aging
Book balance Ratio (%) Book balance Ratio (%)
Within 1 year
44,506,222.90 97.93 63,880,339.98 99.17
(inclusive)
1 to 2 (inclusive) years 514,851.14 1.13 441,309.74 0.69
2 to 3 (inclusive) years 389,626.88 0.86
Over 3 years 37,586.94 0.08 93,586.94 0.14
Total 45,448,287.86 100.00 64,415,236.66 100.00
2.Top five accounts paid in advance at period-end balance listed by object
Ratio in the balance
Name of organization Book balance
of advances (%)
1st place 33,489,221.73 73.69
2nd place 10,451,975.10 23.00
3rd place 376,500.00 0.83
4th place 180,000.00 0.40
5th place 88,500.00 0.18
Total 44,586,196.83 98.10
(V)Other receivables
Balance at the end of last
Item Ending balance
year
Notes to Financial Statement Page32
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Balance at the end of last
Item Ending balance
year
Interest receivable
Dividends receivable
Other accounts receivable 18,314,003.84 25,841,206.66
Total 18,314,003.84 25,841,206.66
1. Other accounts receivable
(1) Disclosure by aging
Balance at the end of last
Aging Ending balance
year
Within 1 year 1,058,183.07 3,823,549.28
1 to 2 years 36,436.71 553,190.98
2 to 3 years 243,391.13 1,765,816.10
Over 3 years 49,016,380.54 51,739,037.91
Subtotal 50,354,391.45 57,881,594.27
Less: provision for bad debts 32,040,387.61 32,040,387.61
Total 18,314,003.84 25,841,206.66
(2) Disclosure by category
Ending balance
Book balance Provision for bad debts
Category
Accrual Book value
Amount Ratio (%) Amount
proportion (%)
Accounts
receivable with
32,328,502.39 64.20 32,040,387.61 99.11 288,114.78
single provision for
bad debts
Provision for bad
debts by portfolio 18,025,889.06 35.80 18,025,889.06
of credit risk
Including: low-risk
18,025,889.06 35.80 18,025,889.06
portfolio
Total 50,354,391.45 100.00 32,040,387.61 63.63 18,314,003.84
Notes to Financial Statement Page33
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Balance at the end of last year
Book balance Provision for bad debts
Category
Accrual Book value
Amount Ratio (%) 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 portfolio 25,205,458.42 43.55 25,205,458.42
of credit risk
Including: low-risk
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
Accounts receivable with single provision for bad debts
Ending balance
Name Provision for Accrual
Book balance Causes
bad debts proportion (%)
Huiyang Kangtai Industrial Uncollectible as
14,311,626.70 14,311,626.70 100.00
Company excepted
Uncollectible as
Individual income tax 2,470,039.76 2,470,039.76 100.00
excepted
Dormitory amount Uncollectible as
1,736,004.16 1,736,004.16 100.00
receivable excepted
Uncollectible as
Personal receivables 7,498,997.87 7,498,997.87 100.00
excepted
Shandong Jinan Generation Uncollectible as
3,560,000.00 3,560,000.00 100.00
Equipment Plant excepted
Zuohao Clothing Uncollectible as
43,068.31 43,068.31 100.00
(Shenzhen) Co., Ltd. excepted
Shenzhen Guanhua Printing Uncollectible as
53,591.75 53,591.75 100.00
and Dyeing Co., Ltd. excepted
Shenzhen Nanhua Printing Uncollectible as
41,407.01 41,407.01 100.00
and Dyeing Co., Ltd. excepted
Huizhou Bangde
Uncollectible as
Agricultural Ecological 25,788.00 25,788.00 100.00
excepted
Organic Fertilizer Co., Ltd.
Huizhou Lvhuan Fertilizer Uncollectible as
44,112.10 44,112.10 100.00
Co., Ltd. excepted
Uncollectible as
Others 2,543,866.73 2,255,751.95 88.67
excepted
Total 32,328,502.39 32,040,387.61 99.11
Notes to Financial Statement Page34
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
(3) Accrual of provision for bad debts
Phase I Phase II Phase III
Expected credit Expected credit
Provision for bad Expected credit losses for the entire losses for the entire Total
debts losses over next duration (without duration (with credit
12 months credit impairment impairment
occurred) occurred)
Beginning
32,040,387.61 32,040,387.61
balance
Beginning
balance in the
current period
-- turn to Phase
II
- turn to Phase
III
- return to Phase
II
- return to Phase
I
Current accrual
Current return
Rewrite in the
current period
Write-off in the
current period
Other changes
Ending balance 32,040,387.61 32,040,387.61
Changes in the book balance of other accounts receivable are as follows:
Phase I Phase II Phase III
Expected credit Expected credit
Book balance Expected credit losses for the entire losses for the entire Total
losses over next duration (without duration (with
12 months credit impairment credit impairment
occurred) occurred)
Balance at the
25,205,458.42 32,676,135.85 57,881,594.27
end of last year
Balance at the
end of last year
in the current
period
-- turn to Phase II
Notes to Financial Statement Page35
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Phase I Phase II Phase III
Expected credit Expected credit
Book balance Expected credit losses for the entire losses for the entire Total
losses over next duration (without duration (with
12 months credit impairment credit impairment
occurred) occurred)
- turn to Phase III
- return to Phase
II
- return to Phase
I
Increase in the
current period
Direct write-
downs in the 7,179,569.36 347,633.46 7,527,202.82
current period
Current
derecognition
Other changes
Ending balance 18,025,889.06 32,328,502.39 50,354,391.45
(4) Classification by nature of payment
Book balance at the end of last
Nature of payment Ending book balance
year
Deposit and security deposit 2,784,868.96 8,213,574.51
Withholding payments 8,077,850.31 9,182,463.86
Accounts receivable of
14,740,501.44 14,740,501.44
Huidong Server
Current accounts and others 24,751,170.74 25,745,054.46
Subtotal 50,354,391.45 57,881,594.27
Less: provision for bad debts 32,040,387.61 32,040,387.61
Total 18,314,003.84 25,841,206.66
(4) Top five other account receivables at period-end balance listed by arrears party
Ratio in the
total ending
balance of Ending balance
Nature of
Name of organization Book balance Aging other of provision for
payment
accounts bad debts
receivable
(%)
Current
1st place 14,740,501.44 1-3 years 29.27
accounts
Notes to Financial Statement Page36
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Ratio in the
total ending
balance of Ending balance
Nature of
Name of organization Book balance Aging other of provision for
payment
accounts bad debts
receivable
(%)
Current Over 3
2nd place 14,311,626.70 28.42 14,311,626.70
accounts years
Current Over 3
3rd place 3,560,000.00 7.07 3,560,000.00
accounts years
Over 3
4th place Deposits 1,460,919.00 2.90
years
Current Over 3
5th place 1,408,866.89 2.80 1,408,866.89
accounts years
Total 35,481,914.03 70.46 19,280,493.59
(VI) Inventories
1. Classification of inventories
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
144,000,440.38 59,079,222.05 84,921,218.33 149,489,121.27 61,358,046.54 88,131,074.73
materials
Sporadic
358,080.02 358,080.02 369,916.40 369,916.40
spare parts
Total 144,358,520.40 59,079,222.05 85,279,298.35 149,859,037.67 61,358,046.54 88,500,991.13
2. Inventory falling price reserves
Increase in the current Decrease in the current
Balance at the period period
Item Ending balance
end of last year Reversed or Return or
Others Others
recovered write-off
Raw
61,358,046.54 661,460.81 2,940,285.30 59,079,222.05
materials
Total 61,358,046.54 661,460.81 2,940,285.30 59,079,222.05
(VII) Contract assets
Balance at the end of
Item Ending balance
last year
Operation and maintenance project
1,040,000.00
settlement accounts receivable
Notes to Financial Statement Page37
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Balance at the end of
Item Ending balance
last year
Project quality guarantee deposit 217,009.58
Subtotal 217,009.58 1,040,000.00
Provision for impairment of contractual
assets
Total 217,009.58 1,040,000.00
(VIII)Other current assets
Balance at the end of
Item Ending balance
last year
Large negotiable certificate of deposit 180,000,000.00
Input VAT to be deducted 1,103,481.37 324,040,257.98
Prepaid income tax 6,583,089.98 6,583,089.98
Interest receivable on time deposits 496,849.31 1,195,914.66
Others 65,419.78 49,399.00
Total 188,248,840.44 331,868,661.62
Notes to Financial Statement Page38
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
(IX)Long-term equity investments
Increase or decrease in the current period
Investment Cash Ending
Balance at profit and Adjustment of Other dividends balance of
Provision Ending
Investees the end of Additional Reduced loss other changes or profits provision
for Others balance
last year investment investment recognized comprehensive in declared for
impairment impairment
by equity income equity and
method distributed
Associates
Huidong Server
Harbor
Comprehensive
Development
-
Company 6,986,655.19 4,414,021.80
2,572,633.39
(hereinafter
referred to as
“Huidong
Server”)
Jiangsu
Liaoyuan
Environmental
Protection
Technology
Co., 6,208,396.44 72,873,680.00 79,082,076.44
Ltd. (hereinafter
referred to as
“Liaoyuan
Environmental
Protection”)
Notes to Financial Statement Page39
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Increase or decrease in the current period
Investment Cash Ending
Balance at profit and Adjustment of Other dividends balance of
Provision Ending
Investees the end of Additional Reduced loss other changes or profits provision
for Others balance
last year investment investment recognized comprehensive in declared for
impairment impairment
by equity income equity and
method distributed
Total 6,986,655.19 3,635,763.05 72,873,680.00 83,496,098.24
Notes to Financial Statement Page40
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
(X) Other investments in equity instruments
1. Other investments in equity instruments
Balance at the end of this year Balance at the end of last year
Item Original book Changes in Original book Changes in Balance at the
Ending balance
value fair value value fair value end of the year
CPI Jiangxi Nuclear
60,615,000.00 60,615,000.00 60,615,000.00 60,615,000.00
Power Company
Zhongsheng
Technology (Jiangsu) 140,000,000.00 140,000,000.00 140,000,000.00 140,000,000.00
Co., Ltd.
Shenzhen
Petrochemical Products
2,500,000.00 -2,500,000.00 2,500,000.00 -2,500,000.00 -
Bonded Trading Co.,
Ltd.
Shenzhen Yuanzhi
Ruixin Equity
Investment
Management Co., Ltd.,
a private equity
100,000,000.00 100,000,000.00
investment fund
partnership enterprise
with the next-
generation information
technology
Total 303,115,000.00 -2,500,000.00 300,615,000.00 203,115,000.00 -2,500,000.00 200,615,000.00
2. Investment in non-trading equity instruments
Reasons of
Dividend Retained
Designated as the investment retained
income earnings
measured at fair value and whose earnings
recognized Cumulative Cumulative transferred
Item changes reckoned into other transferred
in the gains loss from other
comprehensive income (explain from other
current comprehensive
reasons) comprehensive
period income
income
CPI Jiangxi
Nuclear
453,587.35 Intents to holding for a long-term
Power
Company
Shenzhen
Petrochemical
Products
-2,500,000.00 Intents to holding for a long-term
Bonded
Trading Co.,
Ltd.
Zhongsheng
Technology
8,400,000.00 Intents to holding for a long-term
(Jiangsu) Co.,
Ltd.
Total 8,853,587.35 -2,500,000.00
(XI)Investment properties
1. Investment real estate measured at cost
Notes to Financial Statement Page41
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Item Houses and buildings Total
1. Original book value
(1) Balance at the end of last year 9,708,014.96 9,708,014.96
(2) Increase in the current period
(3) Decrease in the current period
(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) Increase in the current period 175,707.60 175,707.60
(3) Decrease in the current period
(4) Ending balance 7,874,670.76 7,874,670.76
3. Provision for impairment
(1) Balance at the end of last year
(2) Increase in the current period
(3) Decrease in the current period
(4) Ending balance
4. Book value
(1) Ending book value 1,833,344.20 1,833,344.20
(2) Book value at the end of the previous
2,009,051.80 2,009,051.80
year
(XII) Fixed assets
1. Fixed assets and disposal of fixed assets
Balance at the end of last
Item Ending balance
year
Fixed assets 591,290,204.31 643,256,398.30
Disposal of fixed assets
Total 591,290,204.31 643,256,398.30
Notes to Financial Statement Page42
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
2. Fixed assets
Item Houses and buildings Machinery and equipment Means of transport Others Total
1. Original book value
(1) Balance at the end of last
426,009,822.97 3,191,370,467.04 14,881,705.15 61,313,836.82 3,693,575,831.98
year
(2) Increase in the current
358,429.27 3,633,815.36 967,643.92 4,959,888.55
period
- Purchase 792,046.48 1,139,740.48
- Transfer of projects under
3,633,815.36 23,613.27 3,657,428.63
construction
- Others 358,429.27 151,984.17 162,719.44
(3) Decrease in the current
2,214,068.53 469,911,937.47 6,743,170.13 17,659,003.94 496,528,180.07
period
- Disposal or scrapping 2,214,068.53 469,756,380.42 6,736,007.74 17,659,003.94 496,365,460.63
-- Others 155,557.05 7,162.39 162,719.44
(4) Ending balance 424,154,183.71 2,725,092,344.93 8,138,535.02 44,622,476.80 3,202,007,540.46
2. Accumulated depreciation
(1) Balance at the end of last
286,391,266.26 2,308,965,299.56 8,678,482.02 46,874,270.77 2,650,909,318.61
year
(2) Increase in the current
10,315,702.27 16,333,483.84 1,882,884.43 2,745,555.12 31,277,625.66
period
- Accrual 10,314,516.80 16,333,483.84 1,882,884.43 2,727,144.02 31,258,029.09
- Others 1,185.47 18,411.10 19,596.57
Notes to Financial Statement Page43
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Item Houses and buildings Machinery and equipment Means of transport Others Total
(3) Decrease in the current
1,928,912.63 412,856,129.18 5,549,496.30 15,862,618.79 436,197,156.90
period
- Disposal or scrapping 1,928,912.63 412,836,532.61 5,549,496.30 15,862,618.79 436,177,560.33
- Others 19,596.57 19,596.57
(4) Ending balance 294,778,055.90 1,912,442,654.22 5,011,870.15 33,757,207.10 2,245,989,787.37
3. Provision for impairment
(1) Balance at the end of last
22,469,672.10 376,720,124.57 56,300.08 164,018.32 399,410,115.07
year
(2) Increase in the current
104,296.86 7,074,566.12 67,375.50 7,246,238.48
period
- Accrual 104,296.86 7,074,566.12 67,375.50 7,246,238.48
(3) Decrease in the current
41,905,811.13 3,123.60 19,870.04 41,928,804.77
period
- Disposal or scrapping 41,905,811.13 3,123.60 19,870.04 41,928,804.77
(4) Ending balance 22,573,968.96 341,888,879.56 53,176.48 211,523.78 364,727,548.78
4. Book value
(1) Ending book value 106,802,158.85 470,760,811.15 3,073,488.39 10,653,745.92 591,290,204.31
(2) Book value at the end of the
117,148,884.61 505,685,042.91 6,146,923.05 14,275,547.73 643,256,398.30
previous year
Notes to Financial Statement Page44
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
3. Fixed assets without certificate of title
Reasons for the failure of
Item Book value
the certificate of title
Circulating water pump house 906,810.74 Procedures uncompleted
Cooling tower 673,259.25 Procedures uncompleted
Complex building 443,246.19 Procedures uncompleted
Comprehensive building
227,979.99 Procedures uncompleted
canteen
Chemical water treatment
232,960.00 Procedures uncompleted
workshop
Main entrance mail room 61,599.00 Procedures uncompleted
Total 2,545,855.17
(XIII) Construction in process
1. Construction in process
Balance at the end of last
Item Ending balance
year
Construction in process 4,861,062.16 6,088,768.51
Total 4,861,062.16 6,088,768.51
Notes to Financial Statement Page45
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
2. Projects under construction
Ending balance Balance at the end of last year
Item
Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Cogeneration
60,307,712.44 59,515,356.69 792,355.75 60,307,712.44 58,610,372.06 1,697,340.38
project
Oil-to-gas
9,441,286.39 9,441,286.39 13,230,574.53 13,230,574.53
project
Technical
renovation 5,673,706.41 1,605,000.00 4,068,706.41 5,862,678.13 1,471,250.00 4,391,428.13
project
Total 75,422,705.24 70,561,643.08 4,861,062.16 79,400,965.10 73,312,196.59 6,088,768.51
Notes to Financial Statement Page46
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
3. Changes in significant projects under construction in the current period
Amount Ratio of
Other Including:
transferred accumulated Accumulative Rate of interest
Balance at the Increase in decreases in Project capitalization
into fixed Ending project amount of capitalization in Capital
Project name Budget end of last the current the current progress of interest in
assets in balance investment capitalization the current source
year period period (%) the current
the current in budget of interest period (%)
(Note) period
period (%)
Self-
Cogeneration
60,000,000.00 60,307,712.44 60,307,712.44 100.51 100.00 6,476,185.46 raised and
project
borrowing
Oil-to-gas Self-
13,230,574.53 3,789,288.14 9,441,286.39
project raised
Total 60,000,000.00 73,538,286.97 3,789,288.14 69,748,998.83 6,476,185.46
Note: The decrease in the current period is due to the disposal of No. 7/9 unit oil-to-gas project.
Notes to Financial Statement Page47
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
4. Accrual of impairment provision for construction in progress in the current period
Amount of provision in the
Item Reason for provision
current period
According to the government
plan, some pipelines that have
Cogeneration project 904,984.63
been dismantled are in the state
to be scrapped
Technical renovation project 133,750.00 Technical innovation
Total 1,038,734.63
(XIV) Right-of-use assets
Item Houses and buildings Total
I. Original book value
1. Beginning balance
2. Increase in the current period 16,322,014.37 16,322,014.37
3. Decrease in the current period
4. Ending balance 16,322,014.37 16,322,014.37
II. Accumulated depreciation
1. Beginning balance
2. Increase in the current period 8,614,396.47 8,614,396.47
(1) Provision 8,614,396.47 8,614,396.47
3. Decrease in the current period
4. Ending balance 8,614,396.47 8,614,396.47
III. Provision for impairment
IV. Book value
1. Ending book value 7,707,617.90 7,707,617.90
2. Book value at the beginning of
the year
Note: The current right-of-use assets is mainly for the 16th and 17th floors of Hantang Mansion,
the operating lease for office use.
(XV) Intangible assets
1. Intangible assets
Item Land use right Patent right Software Total
1. Original book value
(1) Balance at the end of
60,813,994.76 3,886,757.08 64,700,751.84
last year
(2) Increase in the current
138,625.07 138,625.07
period
Notes to Financial Statement Page48
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Item Land use right Patent right Software Total
- Purchase 138,625.07 138,625.07
(3) Decrease in the
103,773.59 103,773.59
current period
- Others 103,773.59 103,773.59
(4) Ending balance 60,813,994.76 138,625.07 3,782,983.49 64,735,603.32
2. Accumulated
amortization
(1) Balance at the end of
40,643,255.55 3,591,589.43 44,234,844.98
last year
(2) Increase in the current
622,629.60 31,817.30 46,956.32 701,403.22
period
- Accrual 622,629.60 31,817.30 46,956.32 701,403.22
(3) Decrease in the
current period
- Disposal
(4) Ending balance 41,265,885.15 31,817.30 3,638,545.75 44,936,248.20
3. Provision for
impairment
(1) Balance at the end of
last year
(2) Increase in the current
period
- Accrual
(3) Decrease in the
current period
- Disposal
(4) Ending balance
4. Book value
(1) Ending book value 19,548,109.61 106,807.77 144,437.74 19,799,355.12
(2) Book value at the end
20,170,739.21 295,167.65 20,465,906.86
of the previous year
2. Land use right without certificate of title
Reasons for the failure of
Item Book value
the certificate of title
Land use right of the wharf and pipe Influence of international
381,039.48
gallery macro-control
Total 381,039.48
Notes to Financial Statement Page49
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
(XVI) Long-term deferred expenses
Amortization
Balance at the Increase in the Other
Item in current Ending balance
end of last year current period decreases
period
Decoration fee 1,716,460.30 497,331.12 1,219,129.18
Total 1,716,460.30 497,331.12 1,219,129.18
(XVII) Deferred income tax assets and deferred income tax liabilities
1. Deferred income tax assets without set-off
Ending balance Balance at the end of last year
Item Deductible Deferred Deductible
Deferred income
temporary income tax temporary
tax assets
differences assets differences
Provision for bad
3,649,109.93 547,366.49 1,937,145.52 484,286.38
debts
Changes in fair value
of other investments 2,500,000.00 625,000.00 2,500,000.00 625,000.00
in equity instruments
Total 6,149,109.93 1,172,366.49 4,437,145.52 1,109,286.38
2. Details of unrecognized deferred income tax assets
Balance at the end of last
Item Ending balance
year
Deductible temporary differences 545,598,991.76 585,949,690.28
Deductible loss 560,445,722.73 346,683,937.56
Total 1,106,044,714.49 932,633,627.84
(XVIII) Other non-current assets
Balance at the end of last
Item Ending balance
year
Project quality guarantee deposit 5,371,398.18
Total 5,371,398.18
(XIX) Short-term borrowings
1. Classification of short-term borrowings
Notes to Financial Statement Page50
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Balance at the end of last
Item Ending balance
year
Credit borrowings 885,229,358.05 856,861,840.80
Accrued interest 1,806,895.30 1,582,322.45
Bill discounting interest -7,078,395.91
Total 879,957,857.44 858,444,163.25
(XX) Notes payable
Balance at the end of last
Category Ending balance
year
Bank acceptance 137,298,902.17 135,025,883.27
Total 137,298,902.17 135,025,883.27
(XXI) Accounts payable
1. Presentation of accounts payable
Balance at the end of last
Item Ending balance
year
Materials 292,422.50 2,325,920.64
Electricity 937,613.72 1,078,066.07
Labor 3,997,800.00 3,299,480.00
Total 5,227,836.22 6,703,466.71
(XXII) Employee compensation payable
1. List of employee compensation payable
Balance at the Increase in the Decrease in the
Item Ending balance
end of last year current period current period
Short-term
40,963,433.02 111,462,128.57 123,128,746.52 29,296,815.07
remunerations
Post-employment
welfare-defined 569,587.94 15,707,993.05 16,277,580.99
contribution plans
Dismission welfare
Other welfare due
within one year
Total 41,533,020.96 127,170,121.62 139,406,327.51 29,296,815.07
Notes to Financial Statement Page51
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
2. Presentation of short-term compensation
Balance at the Increase in the Decrease in the
Item Ending balance
end of last year current period current period
(1) Wages, bonuses,
allowances and 40,511,401.25 82,852,516.05 94,557,597.94 28,806,319.36
subsidies
(2) Welfare for workers
62,077.00 10,568,296.67 10,523,096.47 107,277.20
and staff
(3) Social insurance 5,741,921.78 5,741,921.78
Including: medical
5,242,249.55 5,242,249.55
insurance
Work-related injury
150,878.92 150,878.92
insurance
Maternity insurance 348,793.31 348,793.31
(4)
Housing accumulation 10,433,373.60 10,433,373.60
fund
(5) Labor union
expenditure and
389,954.77 1,866,020.47 1,872,756.73 383,218.51
personnel education
expense
(6) Short-term
compensated absences
(7) Short-term profit-
sharing plan
(8) Others
Total 40,963,433.02 111,462,128.57 123,128,746.52 29,296,815.07
3 Defined contribution plan
Balance at the Increase in the Decrease in the
Item Ending balance
end of last year current period current period
Basic endowment
11,336,151.45 11,336,151.45
insurance
Unemployment insurance 142,141.54 142,141.54
Enterprise annuity 569,587.94 4,229,700.06 4,799,288.00
Total 569,587.94 15,707,993.05 16,277,580.99
(XXIII) Taxes payable
Balance at the end of last
Item Ending balance
year
VAT 2,068,236.33 706,615.96
Notes to Financial Statement Page52
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Balance at the end of last
Item Ending balance
year
Individual income tax 1,825,992.00 1,402,165.48
City maintenance tax 2,464.98 43,868.84
Education surtax 630.08 25,354.34
Local education surtax 420.06 16,902.90
Property tax 996,166.86 1,524,487.98
Stamp duty 170,883.69 63,247.50
Environmental protection duty 62,437.77
Others 42,872.73 300,759.12
Total 5,107,666.73 4,145,839.89
(XXIV)Other payables
Balance at the end of last
Item Ending balance
year
Interest payable
Other payables 22,997,466.80 62,678,254.02
Total 22,997,466.80 62,678,254.02
1. Other payables
(1) By nature of payment
Balance at the end of last
Item Ending balance
year
Project funds 7,525,391.28 4,991,246.36
Quality deposit 6,973,652.54 6,308,254.95
Accrued expenses 7,429,154.13 8,537,422.41
Materials 52,087.65 30,721,390.14
Others 1,017,181.20 12,119,940.16
Total 22,997,466.80 62,678,254.02
(2) Top five of other payables
Ratio in the balance
Name of organization Book balance of other payables
(%)
Notes to Financial Statement Page53
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Ratio in the balance
Name of organization Book balance of other payables
(%)
1st place 4,760,000.00 20.70
2nd place 1,872,500.00 8.14
3rd place 1,864,000.00 8.11
4th place 860,190.12 3.74
5th place 560,000.00 2.43
Total 9,916,590.12 43.12
(XXV)Non-current liabilities due within one year
Balance at the end of last
Item Ending balance
year
Lease liabilities due within one year 6,279,115.44
Less: unrecognized financing expenses 264,995.49
Total 6,014,119.95
(XXVI)Other current liabilities
Balance at the end of last
Item Ending balance
year
VAT tax to be carried forward 21,600.00
Total 21,600.00
(XXVII)Long-term borrowings
Balance at the end of last
Item Ending balance
year
Credit borrowings 28,019,758.68
Total 28,019,758.68
(XXVIII)Lease liabilities
1. Details of lease liabilities
Balance at the end of last
Item Ending balance
year
Lease liabilities 2,291,614.01
Less: unrecognized financing expenses 29,453.98
Total 2,262,160.03
2. Maturity analysis of lease liabilities
Notes to Financial Statement Page54
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Balance at the end of last
Item Ending balance
year
1-2 years 2,262,160.03
Total 2,262,160.03
(XXIX)Estimated liabilities
Balance at the Increase in the Decrease in the
Item Ending balance Cause
end of last year current period current period
Pending
15,000,000.00 15,000,000.00
action
Total 15,000,000.00 15,000,000.00
Note: On November 29, 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 returned 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. The 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 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
5,000,000.00 Yuan returned from the joint account. Accordingly, Shenzhen Server returned its
estimated liabilities of 4,573,508.28 Yuan. In 2021, Shenzhen Server bore 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.
(XXX)Deferred income
Balance at the Increase in the Decrease in the
Item Ending balance Cause
end of last year current period current period
Government Government
88,079,970.09 390,000.00 6,324,373.49 82,145,596.60
subsidies subsidies
Total 88,079,970.09 390,000.00 6,324,373.49 82,145,596.60
Notes to Financial Statement Page55
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Items with government subsidy involved:
Subsidy
amount Amount
Balance at the newly included in Assets
Other Ending
Liabilities end of last increased current related/income
changes balance
year in the profit and related
current loss
period
Government
subsidies for
low-nitrogen 24,104,286.46 488,621.77 23,615,664.69 Assets related
equipment
renovation
Subsidies for
the Motor
Energy
Efficiency 332,640.00 34,560.00 298,080.00 Assets related
Improvement
Funding
Scheme
Support fund
of recycling
6,157,268.11 647,002.92 5,510,265.19 Assets related
economy for
sludge drying
Treasury
subsidies for 2,316,250.00 255,000.00 2,061,250.00 Assets related
sludge drying
Special funds
for energy
conservation 456,148.66 114,037.32 342,111.34 Assets related
and emission
reduction
Subsidy for
quality
promotion of
54,061,987.96 4,731,818.16 49,330,169.80 Assets related
the air
environment
in Shenzhen
Funding for
technical
transformation
651,388.90 390,000.00 53,333.32 988,055.58 Assets related
investment
project in
2021-2022
Total 88,079,970.09 390,000.00 6,324,373.49 82,145,596.60
(XXXI)Other non-current liabilities
Notes to Financial Statement Page56
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Balance at the end of last
Item Ending balance
year
Equity of other partners in the
47,511.72 50,310.78
partnership
Total 47,511.72 50,310.78
(XXXII)Share capital
Increase (+) and decrease (-) of changes in the
current period
Balance at the
Item New Capitalization Ending balance
end of last year Bonus
shares of public Others Subtotal
shares
issued reserve
Total
amount
602,762,596.00 602,762,596.00
of
shares
(XXXIII)Capital reserves
Balance at the end Increase in the Decrease in the
Item Ending balance
of last year current period current period
Capital premium
(capital stock 233,035,439.62 233,035,439.62
premium)
Other capital reserves 129,735,482.48 129,735,482.48
Total 362,770,922.10 362,770,922.10
Notes to Financial Statement Page57
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
(XXXIV)Other comprehensive income
Amount for the current period
Less: written in Less: written in
other other
comprehensive comprehensive
Balance at the
Beginning Account income in income in Less: Belong to Belong to Ending
Item end of last before previous period previous period income parent minority
balance balance
year income tax and carried and carried tax company shareholders
in the year forward to forward to expense after tax after tax
profits 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 profits/losses
Changes in fair value of other
-2,500,000.00 -2,500,000.00
investments in equity instruments
Total other comprehensive income -2,500,000.00 -2,500,000.00
Notes to Financial Statement Page58
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
(XXXV) Special reserves
Balance at the Increase in the Decrease in the
Item Ending balance
end of last year current period current period
Work safety costs 879,946.49 879,946.49
Total 879,946.49 879,946.49
(XXXVI)Surplus reserves
Balance at the end Increase in the Decrease in the
Item Ending balance
of last year current period current period
Statutory surplus
310,158,957.87 310,158,957.87
reserves
Arbitrary surplus
22,749,439.73 22,749,439.73
reserves
Total 332,908,397.60 332,908,397.60
(XXXVII)Undistributed profit
Amount for the current Amount for the
Item
period previous period
Undistributed profit at the end of the previous
319,351,219.81 758,799,931.94
year before adjustment
Total undistributed profit adjusted at the
beginning of the year (+ for increase, - for
decrease)
Undistributed profit at the beginning of the year
319,351,219.81 758,799,931.94
after adjustment
Add: net profit attributable to shareholders of
-160,163,240.67 -439,448,712.13
parent company
Less: withdrawal of statutory surplus reserve
Ordinary shares dividends payable
Undistributed profit at the end of the period 159,187,979.14 319,351,219.81
(XXXVIII)Operating income and operating costs
Amount for the current period Amount for the previous period
Item
Income Cost Income Cost
Main business 692,615,690.26 804,420,389.38 755,956,762.36 849,690,713.43
Other 1,611,967.02 258,934.10 1,218,981.05 569,945.97
Notes to Financial Statement Page59
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Amount for the current period Amount for the previous period
Item
Income Cost Income Cost
Total 694,227,657.28 804,679,323.48 757,175,743.41 850,260,659.40
(XXXIX)Tax and extras
Amount for the current Amount for the previous
Item
period period
Property tax 2,254,621.19 2,220,037.22
Travel tax 15,821.56 16,916.56
Land use tax 761,201.97 761,202.39
Stamp duty 827,734.86 701,797.80
City maintenance tax 881,150.58 1,168,205.83
Education surtax 376,909.09 572,120.09
Local education surtax 251,272.77 381,413.39
Environmental protection tax 32,638.18 459,455.02
Total 5,401,350.20 6,281,148.30
(XL)Selling and distribution expenses
Amount for the previous
Item Amount for the current period
period
Employee compensation 273,048.37 450,223.22
Entertainment expenses 13,684.45 100,232.70
Agency fees 45,050.50 32,737.16
Property insurance 43,272.46 48,684.42
Others 296,784.29
Total 375,055.78 928,661.79
(XLI)G&A expenses
Amount for the previous
Item Amount for the current period
period
Employee compensation 49,552,978.78 56,452,092.75
Lease fees 326,066.00 6,461,642.19
Depreciation cost 12,727,414.30 10,879,329.80
Notes to Financial Statement Page60
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Amount for the previous
Item Amount for the current period
period
Entertainment expenses 2,262,676.26 2,611,353.46
Agency fees 2,917,219.44 6,597,046.69
Repair costs 438,047.18 382,708.01
Environmental protection fee 207,689.97 1,408,486.56
Vehicle expenses 1,000,874.34 2,892,135.99
Office expenses 566,218.06 591,516.35
Expenses of the Board of Directors 458,825.47 1,033,954.26
Communication expenses 632,219.43 1,235,859.50
Amortization of intangible assets 76,716.36 139,202.16
Property management fees 1,066,655.06 1,110,962.08
Travel expenses 346,228.17 470,531.57
Share certificate fee 512,986.66 642,314.97
Others 6,006,535.06 10,377,790.35
Total 79,099,350.54 103,286,926.69
(XLII)R&D expenses
Amount for the previous
Item Amount for the current period
period
Employee compensation 23,134,437.76 20,409,064.48
Depreciation cost 1,822,436.62 353,385.65
Others 690,660.01 171,262.85
Total 25,647,534.39 20,933,712.98
(XLIII)Financial expenses
Amount for the previous
Item Amount for the current period
period
Interest expense 40,218,036.98 30,629,953.77
Less: capitalized interest
Expensed interest expense 40,218,036.98 30,629,953.77
Less: interest income 8,790,975.96 15,728,363.74
Foreign exchange losses (gain
-460,083.33 112,793.73
is listed with “-”)
Notes to Financial Statement Page61
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Amount for the previous
Item Amount for the current period
period
Service fee 247,340.17 198,353.91
Amortization of financing charges
928,484.64
unrecognized
Total 32,142,802.50 15,212,737.67
(XLIV)Other income
Amount for the current Amount for the previous
Item
period period
Government subsidies 9,333,093.72 7,074,336.60
Total 9,333,093.72 7,074,336.60
Government subsidies included in other income
Assets
Amount for the Amount for the
Subsidy items related/income
current period previous period
related
Subsidies for transformation of low
488,621.77 544,168.22 Asset related
nitrogen projects
Support fund of recycling economy for
647,002.92 647,002.92 Asset related
sludge drying
Treasury subsidies for sludge drying 255,000.00 255,000.00 Asset related
Subsidy for quality promotion of the
4,731,818.16 4,731,818.16 Asset related
air environment in Shenzhen (note 1)
Special funds for energy conservation
114,037.32 114,037.32 Asset related
and emission reduction
Funding scheme for the improvement
34,560.00 34,560.00 Asset related
of motor energy efficiency
Funding for technical transformation
53,333.32 18,611.10 Asset related
investment project in 2021-2022
Information construction 25,490.12 Asset related
National High-Tech
500,000.00 400,000.00 Income related
Enterprises Multiplication Plan
Special funds for development of
246,100.00 100,000.00 Income related
independent innovation industries
Individual tax refund 299,897.34 195,684.76 Income related
Lump-sum subsidy for training
128,000.00 Income related
workers on post
Subsidies for pilot demonstration of
570,000.00 Income related
industrial “carbon peak” work
Notes to Financial Statement Page62
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Assets
Amount for the Amount for the
Subsidy items related/income
current period previous period
related
Support funds for office housing of
1,000,000.00 Income related
listed company
Social security subsidies 83,490.91 Income related
Subsidies for stabilizing posts 153,231.98 7,964.00 Income related
Science and technology innovation
28,000.00 Income related
voucher
Total 9,333,093.72 7,074,336.60
(XLV)Investment income
Amount for the current Amount for the previous
Item
period period
Long-term equity investment income
3,635,763.05 -1,906,753.67
by equity
Investment income from disposal of
long-term equity investments
Investment income from financial
assets held for trading during the 58,227,971.21 47,635,822.62
holding period
Dividend income obtained during the
holding period of other equity 8,853,587.35 252,016.49
instrument investments
Total 70,717,321.61 45,981,085.44
(XLVI)Credit impairment loss
Amount for the current Amount for the previous
Item
period period
Losses on accounts receivable -1,711,964.42
Total -1,711,964.42
(XLVII)Asset impairment loss
Amount for the current Amount for the previous
Item
period period
Loss of inventory impairment -661,460.81 -11,958,247.40
Fixed asset impairment loss -7,246,238.48 -277,713,051.89
Impairment loss of construction in -1,038,734.63 -37,807,711.63
Notes to Financial Statement Page63
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Amount for the current Amount for the previous
Item
period period
process
Total -8,946,433.92 -327,479,010.92
(XLVIII)Income from disposal of assets
Amount reckoned
Amount for the Amount for the into non-recurring
Item
current period previous period profits/losses of the
period
Profit and loss on disposal of
291,985.88 974,699.74 291,985.88
fixed assets
Total 291,985.88 974,699.74 291,985.88
(IL)Non-operating income
Amount reckoned
Amount for the Amount for the into non-recurring
Item
current period previous period profits/losses of the
period
Government subsidies 39,600.00 39,600.00
Return of estimated liabilities 5,000,000.00
Others 261,868.99
Total 39,600.00 5,261,868.99 39,600.00
(L)Non-operating expenses
Amount reckoned
Amount for the Amount for the into non-recurring
Item
current period previous period profits/losses of the
period
External donation 10,000.00 10,000.00 10,000.00
Loss of scrap from non-
1,463,939.59 188,716.00 1,463,939.59
current assets
Others 717,844.64 49,500.00 664,665.42
Total 2,191,784.23 248,216.00 2,138,605.01
(LI) Income tax expenses
1. Income tax expenses
Notes to Financial Statement Page64
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Amount for the current Amount for the previous
Item
period period
Current income tax expenses 140,503.27
Deferred income tax expenses -63,080.11 1,096,763.31
Total -63,080.11 1,237,266.58
2. Adjustment on accounting profit and income tax expenses
Amount for the current
Item
period
Total profit -185,585,940.97
Income tax measured by statutory/applicable tax rate -27,837,891.15
Effect of different tax rate applicable to subsidiaries -20,849,070.65
Effect of adjustment to income tax in previous periods
Effect of non-taxable income -1,447,907.80
Effect of non-deductible costs, expenses and losses 522,955.64
Effect of using deductible loss of previously unrecognized deferred
-7,315,628.75
income tax assets
Effect of deductible temporary differences or deductible loss of
59,996,825.35
unrecognized deferred income tax assets in the current period
Changes in deferred tax assets/liabilities at the beginning of the period
193,714.55
due to tax rate adjustments
Effect of additional deduction of R&D expenses -3,326,077.30
Income tax expenses -63,080.11
(LII) 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:
Amount for the current Amount for the
Item
period previous period
Consolidated net profit attributable to ordinary
-160,163,240.67 -439,448,712.13
shareholders of the parent company
Weighted average number of ordinary shares
602,762,596.00 602,762,596.00
issued by the Company
Basic earnings per share -0.2657 -0.7291
2. Diluted earnings per share
Notes to Financial Statement Page65
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Amount for the current Amount for the
Item
period previous period
Consolidated net profit attributable to ordinary
-160,163,240.67 -439,448,712.13
shareholders of the parent company (diluted)
Weighted average number of ordinary shares
602,762,596.00 602,762,596.00
issued by the Company (diluted)
Diluted earnings per share -0.2657 -0.7291
(LIII)Statement of cash flows
1. Cash received with other operating activities concerned
Amount for the current Amount for the
Item
period previous period
Interest income 9,272,736.48 17,328,709.70
Income from government subsidies 2,800,716.98 18,415,845.60
Current accounts received 42,010,090.88 15,273,968.49
Others 407,871.92
Total 54,083,544.34 51,426,395.71
2. Other relevant cash paid for operating activities
Amount for the current Amount for the
Item
period previous period
Cash paid for G&A expenses, R&D expenses
24,583,319.72 44,496,464.32
and selling and distribution expenses
Current accounts paid 1,221,929.96 12,486,872.79
Total 25,805,249.68 56,983,337.11
3. Other cash paid concerning investing activities
Amount for the current Amount for the
Item
period previous period
Cash paid for purchasing negotiable certificates
180,000,000.00
of large deposit
Cash paid for disposal of fixed assets 9,000.00
Total 180,009,000.00
4. Other relevant cash paid for financing activities
Notes to Financial Statement Page66
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Amount for the current Amount for the
Item
period previous period
Margin of bank acceptance bills 27,474,594.34
Total 27,474,594.34
(LIV)Supplementary statement of cash flows
1. Supplementary statement of cash flows
Amount for the current Amount for the
Supplementary information
period previous period
1. Net profit adjusted to cash flow of operation
activities
Net profit -185,522,860.86 -509,400,606.15
Add: credit impairment loss 1,711,964.42
Provision for asset impairment 8,946,433.92 327,479,010.92
Depreciation and amortization of investment
175,707.60 196,137.60
property
Depreciation of fixed assets 31,258,029.09 45,339,600.41
Depreciation of right-of-use assets 8,614,396.47
Amortization of intangible assets 701,403.22 755,241.12
Amortization of long-term deferred expenses 497,331.12 441,620.60
Loss from disposing fixed assets, intangible
assets and other long-term assets (income -291,985.88 -974,699.74
is listed with “-“)
Loss on retirement of fixed assets (gain is listed
1,463,939.59 188,716.00
with “-”)
Loss from changes of fair value (income is
listed with “-“)
Financial expense (gain is listed with “-”) 40,218,036.98 30,629,953.77
Investment loss (gain is listed with “-”) -70,717,321.61 -45,981,085.44
Decrease of deferred income tax asset( (increase
-63,080.11 1,096,763.31
is listed with “-”)
Increase of deferred income tax asset( (decrease
is listed with “-”)
Decrease of inventory (increase is listed with “-
5,500,517.27 -205,923.56
”)
Decrease of operating receivable accounts
289,715,229.11 30,907,257.52
(increase is listed with “-”)
Increase of operating payable accounts
74,960,661.93 80,269,711.57
(decrease is listed with “-”)
Notes to Financial Statement Page67
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Amount for the current Amount for the
Supplementary information
period previous period
Others
Net cash flows from operating activities 207,168,402.26 -39,258,302.07
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 648,021,672.06 456,751,614.75
Less: beginning balance of cash 456,751,614.75 397,101,272.21
Add: ending balance of cash equivalents 232,853,018.84
Less: beginning balance of cash equivalents 232,853,018.84 367,500,000.00
Net increase in cash and cash equivalents -41,582,961.53 -74,996,638.62
2. Composition of cash and cash equivalent
Balance at the end of
Item Ending balance
last year
I. Cash 648,021,672.06 456,751,614.75
Including: cash on hand 37,698.63 35,963.95
Bank savings available for payment needed 647,983,965.23 456,715,650.80
Other cash and cash equivalents available for
8.20
payment at any time
Account due from central bank available for
payment
Amount due from banks
Amount call loans to banks
II. Cash equivalents 232,853,018.84
Including: bond investments due within three
months
III. Balance of ending cash and cash equivalents 648,021,672.06 689,604,633.59
Including: Cash and cash equivalent of the parent
company or subsidiaries with use restricted
Notes to Financial Statement Page68
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
(LV)Assets of ownership or use right restricted
Item Ending book value Reason for restriction
Cash and cash equivalents 27,474,594.34 Margin of bank acceptance bills
Total 27,474,594.34
(LVI)Monetary items in foreign currency
1. Monetary items in foreign currency
Ending balance in Exchange rate Ending balance of RMB
Item
foreign currency of conversion converted
Cash and cash equivalents
Including: USD 835,024.28 6.96460 5,815,610.10
Euro 1,017.87 7.42290 7,555.55
HKD 281,964.04 0.89327 251,870.02
SGD 3,833.03 5.18310 19,866.98
(LVII)Government subsidies
1. Asset-related government subsidy
Amount included in current Item of the
Items profits/losses or loss resulting amount included
presented from related costs off-setting in current
Category Amount in the profits/losses or
balance Amount for Amount for loss resulting
sheet the current the previous from related
period period costs off-setting
Subsidies for
transformation Deferred
43,032,780.00 488,621.77 544,168.22 Other income
of low nitrogen income
projects
Support fund of
recycling Deferred
11,750,000.00 647,002.92 647,002.92 Other income
economy for income
sludge drying
Treasury
Deferred
subsidies for 5,100,000.00 255,000.00 255,000.00 Other income
income
sludge drying
Subsidy for
quality
Deferred
promotion of the 70,977,273.00 4,731,818.16 4,731,818.16 Other income
income
air environment
in Shenzhen
Special funds for Deferred
1,530,000.00 114,037.32 114,037.32 Other income
energy income
Notes to Financial Statement Page69
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Amount included in current Item of the
Items profits/losses or loss resulting amount included
presented from related costs off-setting in current
Category Amount in the profits/losses or
balance Amount for Amount for loss resulting
sheet the current the previous from related
period period costs off-setting
conservation and
emission
reduction
Funding scheme
for the
Deferred
improvement of 518,400.00 34,560.00 34,560.00 Other income
income
motor energy
efficiency
Funding for
technical
transformation Deferred
670,000.00 53,333.32 18,611.10 Other income
investment income
project in 2021-
2022
Information Deferred
520,000.00 25,490.12 Other income
construction income
Total 134,098,453.00 6,324,373.49 6,370,687.84
2. Income-related government subsidy
Amount included in current Item of the
amount included
profits/losses or loss resulting
in
from related costs off-setting current
Category Amount profits/losses or
Amount for the Amount for the loss resulting
current period previous period from related
costs off-setting
National High
500,000.00 500,000.00 400,000.00 Other income
Multiplication Plan
Special funds for
development of independent 246,100.00 246,100.00 100,000.00 Other income
innovation industries
Individual tax refund 299,897.34 299,897.34 195,684.76 Other income
Lump-sum subsidies for
128,000.00 128,000.00 Other income
training of workers on post
Subsidies for pilot
demonstration of industrial 570,000.00 570,000.00 Other income
“carbon peak” work
Support funds for housing
1,000,000.00 1,000,000.00 Other income
of listed company
Social security subsidies 83,490.91 83,490.91 Other income
Notes to Financial Statement Page70
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Amount included in current Item of the
amount included
profits/losses or loss resulting
from related costs off-settingin current
Category Amount profits/losses or
Amount for the Amount for the loss resulting
current period previous period from related
costs off-setting
Subsidies for stabilizing
153,231.98 153,231.98 7,964.00 Other income
posts
Science and technology
28,000.00 28,000.00 Other income
innovation voucher
Qianhai Epidemic
Non-operating
Prevention Support Special 39,600.00 39,600.00
income
Fund
Financial subsidies for
electricity generation of
16,322,000.00 Operating costs
gas-fired power generation
enterprises
Total 3,048,320.23 3,048,320.23 17,025,648.76
V. Changes in the scope of consolidation
No change in the Company included in the consolidated statement scope during the reporting
period.
VII Equity in other entity
(I) Equity in subsidiaries
1. Composition of the Group
Main Shareholding ratio
(%) Method of
Name of subsidiary operation
acquisition
place Direct Indirect
Shen Nan Dian (Zhongshan) Electric Power
Zhongshan 55.00 25.00 Establishment
Co., Ltd.
Shenzhen Shennandian Turbine Engineering
Shenzhen 60.00 40.00 Establishment
Technology Co., Ltd.
Shenzhen Shen Nan Dian Environment
Shenzhen 70.00 30.00 Establishment
Protection Co., Ltd.
Shenzhen Server Petrochemical Supplying
Shenzhen 50.00 Establishment
Co., Ltd.
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 Establishment
Zhuhai Hengqin Zhuozhi Investment
Zhuhai 99.96 Establishment
Partnership (limited partnership)
Notes to Financial Statement Page71
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
ii. Important non-wholly-owned subsidiary
Shareholding Profit and loss
Balance of
ratio of attributable to
minority equity at
Name of subsidiary minority minority
the end of the
shareholders shareholders in the
period
at % current period
Shen Nan Dian (Zhongshan) Electric
20.00 -22,278,825.83 -100,159,669.95
Power Co., Ltd.
i.
Notes to Financial Statement Page72
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
3. Principal financial information of important non-wholly-owned subsidiaries
Ending Balance /Yuan Balance at the end of last year/Yuan
Name of
subsidiar Current Non- Non- Non- Non-
Current Total Current Current Total
y current Total assets current current Total assets current
assets liabilities liabilities assets liabilities liabilities
assets liabilities assets liabilities
Shen Nan
Dian
(Zhongsh
an)
Electric
43,407,57 216,418,06 259,825,63 755,501,58 5,122,399 760,623,98 32,544,63 231,154,25 263,698,88 647,836,81 5,266,290 653,103,11
Power
1.96 7.18 9.14 8.98 .93 8.91 6.55 2.88 9.43 9.17 .86 0.03
Co., Ltd.
("Zhongs
han
Electric
Power")
Current amount/Yuan Amount for the previous period/Yuan
Name of Total Total
subsidiary Operating Cash flow from Operating Cash flow from
Net profit comprehensive Net profit comprehensive
income operating activities income operating activities
income income
Shen Nan Dian
(Zhongshan)
Electric Power - - -
18,619,522.44 69,486,856.28 124,646,010.22 -330,756,155.47 -7,574,929.39
Co., Ltd. 111,394,129.17 111,394,129.17 330,756,155.47
("Zhongshan
Electric Power")
Notes to Financial Statement Page73
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
(II) Equity in joint venture arrangements or associates
1. Important joint ventures or associates
Shareholding ratio (%) Accounting treatment
Name of joint Main Main
method on investment
ventures or operation business
Direct Indirect in joint ventures or
associates place activities
associates
Huidong Server
Renshan
Harbor
Town, Wharf
Comprehensive 40.00 Equity method
Huidong operation
Development
County
Company
Jiangsu Liaoyuan
Environmental
Yixing, Environment
Protection 9.935 Equity method
Jiangsu Protection
Technology Co.,
Ltd.
2. Main financial information of significant joint ventures or associates
Opening balance/amount for the
Ending balance /Current amount
previous period
Jiangsu Jiangsu
Liaoyuan Liaoyuan
Environmental Environmental
Huidong Server Huidong Server
Protection Protection
Technology Co., Technology Co.,
Ltd. Ltd.
Total book value of
79,082,076.44 4,414,021.80 6,986,655.19
investment
Total numbers measured
by share-holding ratio
- Net profit 6,208,396.44 -2,572,633.39 -1,906,753.67
- Other comprehensive
income
- Total comprehensive
6,208,396.44 -2,572,633.39 -1,906,753.67
income
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
Notes to Financial Statement Page74
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
effect on the final amount of changes about a certain risk variable, therefore, the following
proceeds by assuming that the change in each variable is independent.
(I)Credit risk
Credit risk refers to the risk that one party to a financial instrument fails to perform its obligations,
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.
(II)Market risk
Market risks of financial instruments refers to the risks that the fair value or future cash flow of
such financial instruments will fluctuate due to the changes in market prices, including FX risks,
interest rate risks and other price risks.
(1) Interest rate risk
The Company's cash flow change risk of financial instruments arising from interest rate change is
mainly related to the floating interest rate bank loans.
Sensitivity analysis of interest rate risk:
The sensitivity analysis of interest rate risk 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; The fair value changes
of derivative financial instruments and other financial assets and liabilities are calculated using the
discounted cash flow method at the market interest rate on the balance sheet date. the changes in
fair value of derivative financial instruments and other financial assets and liabilities are
calculated by using the cash flow discount method at the market interest rate on the balance sheet
date.
As of December 31, 2022, the Company's bank loan interest calculated at floating interest rates
amounted to 7,305,058.78 Yuan. On the basis of the above assumptions and with other variables
unchanged, it is assumed that the pre-tax impact of a 5% change in interest rate on current profit
and 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
Increase by
-365,252.94 -365,252.94 -242,491.45 -242,491.45
5%
Decrease by
365,252.94 365,252.94 242,491.45 242,491.45
5%
(2) FX risks
Notes to Financial Statement Page75
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Foreign exchange risk refers to the risk of losses arising from the exchange rate fluctuation. The
company's exposure to foreign exchange risk is mainly related to US dollars. On Dec. 31, 2021,
the Company's assets and liabilities were RMB balances, except for Note V (56) foreign currency
monetary item balances. The foreign exchange risk arising from the assets and liabilities of such
foreign currency balances may have an impact on the Company's operating results.
(III) Liquidity risk
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 parties and related transaction
(I)Parent company of the Company
The shareholding ratio of any shareholder of the Company has not reached 50%, and cannot form
a control relationship over the Company through other means. Therefore, the Company does not
have a parent company.
(II)Subsidiaries of the Company
For details of the Company's subsidiaries, please refer to “VII. (1) Equity in Subsidiaries”.
(III)Joint ventures and associates of the Company
For details of significant joint ventures or associates of the Company, please refer to “VII. (2)
Equity in Joint Venture Arrangements or Associates”.
(IV) Other related parties
Relationship between other related parties
Names of other related parties
and the Company
Shenzhen Energy Group Co., Ltd. (hereinafter Legal person holding more than 5% of the
referred to as “Energy Group”) shares of the Company
Legal person holding more than 5% of the
Shenzhen Guangju Industrial Co., Ltd.
shares of the Company
HONG KONG NAM HOI (INTERNATIONAL) Legal person holding more than 5% of the
LTD. shares of the Company
Legal person holding more than 5% of the
Shenzhen Capital Holdings Co., Ltd. shares of the Company indirectly through
the Energy Group
Directors, supervisors and senior management of the
Key manager
Company
(V) Related transaction
1.Remuneration of key officers
Amount for the current Amount for the previous
Item
period period
Remuneration of directors and
7,531,900 Yuan 6,373,300 Yuan
supervisors
Notes to Financial Statement Page76
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
(VI) Receivables/payables of related parties
1 Receivables
Book balance at the end of
Project name Related parties Ending book balance
last year
Other
receivables
Huidong Server 14,740,501.44 14,740,501.44
Huidong
Server managed 900,414.01 1,014,945.19
account
Total 15,640,915.45 15,755,446.63
X Commitments and contingencies
(I) Significant commitments
As of December 31, 2021, the Company has no commitments that need to be disclosed.
(II) Contingencies
As of December 31, 2021, the Company has no contingencies that need to be disclosed.
XI Events after the balance sheet date
The Company has no subsequent events required to be disclosed as of the reporting date.
(I) Important non-adjusting matters
No
(II) Note of other events occurring after the balance sheet date
No
(III) 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
measurement bases are consistent with the accounting and measurement bases used when
preparing financial statements.
2. Financial information of the reportable segment
Electricity Inter-
Electricity Other
Item engineering seg segment Total
generation segment segments
ment offset
Operating 1,628,759.7 694,227,657.
651,131,238.20 43,498,035.97
income 1,227,142.8 3 28
Notes to Financial Statement Page77
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Electricity Inter-
Electricity Other
Item engineering seg segment Total
generation segment segments
ment offset
4
Operating 1,350,362.1 804,679,323.
779,954,068.91 25,880,076.93
costs 195,539.80 6 48
-
2,606,216,34
Total assets 1,962,695,493.81 85,525,126.72 383,285,37 174,710,35
5.99
2.12 3.34
Total 211,788,06 1,213,397,29
1,341,253,266.39 46,447,820.60 37,484,272.
liabilities 7.64 1.41
06
XII Notes to the main items of the financial statements of the parent company
(I)Accounts receivable
1. Accounts receivable disclosed by aging
Balance at the end of last
Aging Ending balance
year
Within 1 year 47,995,982.82 35,966,056.15
Over 3 years
Subtotal 47,995,982.82 35,966,056.15
Less: provision for bad debts
Total 47,995,982.82 35,966,056.15
2. Accounts receivable disclosed by provision method for bad debts by category
Ending balance
Category Book balance Provision for bad debts
Accrual Book value
Amount Ratio (%) Amount
proportion (%)
Accounts receivable
with single
provision for bad
debts
Provision for bad
debts by
47,995,982.82 100.00 47,995,982.82
combination of risk
characteristics
Including: low-risk
47,995,982.82 100.00 47,995,982.82
portfolio
Total 47,995,982.82 100.00 47,995,982.82
Notes to Financial Statement Page78
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Balance at the end of last year
Category Book balance Provision for bad debts
Accrual Book value
Amount Ratio (%) Amount
proportion (%)
Accounts receivable
with single
provision for bad
debts
Provision for bad
debts by
35,966,056.15 100.00 35,966,056.15
combination of risk
characteristics
Including: low-risk
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 on a portfolio basis:
Ending balance
Name
Accounts receivable Provision for bad debts Accrual proportion (%)
Electricity charges
47,995,982.82
receivable
Total 47,995,982.82
3. Top 5 receivables at ending balance by arrears party
Proportion in Balance of
the balance of provision for bad
Name of organization Book balance
accounts debts at the end
receivable (%) of the year
1st place 47,995,982.82 100.00
Total 47,995,982.82 100.00
(II) Other receivables
Balance at the end of
Item Ending balance
last year
Interest receivable
Notes to Financial Statement Page79
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Balance at the end of
Item Ending balance
last year
Dividends receivable
Other accounts receivable 851,189,111.89 618,436,063.60
Total 851,189,111.89 618,436,063.60
1. Other accounts receivable
(1) Disclosure by aging
Balance at the end of last
Aging Ending balance
year
Within 1 year 452,449,473.00 98,550,452.19
1-2 years 94,733,821.40 64,095.20
2 to 3 years 19,926.83 35,844,839.81
Over 3 years 331,315,534.10 511,306,319.84
Subtotal 878,518,755.33 645,765,707.04
Less: provision for bad debts 27,329,643.44 27,329,643.44
Total 851,189,111.89 618,436,063.60
(2) Disclosure by category
Ending balance
Category Book balance Provision for bad debts
Ratio Accrual Book value
Amount Amount
(%) proportion (%)
Accounts
receivable with
27,617,758.22 3.14 27,329,643.44 98.96 288,114.78
single provision
for bad debts
Provision for
bad debts by
combination of 850,900,997.11 96.86 850,900,997.11
risk
characteristics
Including: low-
850,900,997.11 96.86 850,900,997.11
risk portfolio
Total 878,518,755.33 100.00 27,329,643.44 3.11 851,189,111.89
Category Balance at the end of last year
Notes to Financial Statement Page80
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Book balance Provision for bad debts
Ratio Accrual Book value
Amount Amount
(%) proportion (%)
Accounts
receivable with
27,965,391.68 4.33 27,329,643.44 97.73 635,748.24
single provision
for bad debts
Provision for
bad debts by
combination of 617,800,315.36 95.67 617,800,315.36
risk
characteristics
Including: low-
617,800,315.36 95.67 617,800,315.36
risk portfolio
Total 645,765,707.04 100.00 27,329,643.44 4.23 618,436,063.60
Provision for bad debts on an individual basis:
Ending balance
Name Provision for Accrual
Book balance Causes
bad debts proportion (%)
Uncollectible as
Individual income tax 2,470,039.76 2,470,039.76 100.00
excepted
Dormitory amount Uncollectible as
1,736,004.16 1,736,004.16 100.00
receivable excepted
Huiyang Kangtai Uncollectible as
14,311,626.70 14,311,626.70 100.00
Industrial Company excepted
Beneficial fund
dividends (accounts Uncollectible as
7,498,997.87 7,498,997.87 100.00
receivable from excepted
individuals)
Uncollectible as
Others 1,601,089.73 1,312,974.95 82.01
excepted
Total 27,617,758.22 27,329,643.44 98.96
(3) Accrual of provision for bad debts
Phase I Phase II Phase III
Expected credit Expected credit
losses for the losses for the
Provision for bad debts Expected credit Total
entire duration entire duration
losses over next
(without credit (with credit
12 months
impairment impairment
occurred) occurred)
Beginning balance 27,329,643.44 27,329,643.44
Notes to Financial Statement Page81
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
Phase I Phase II Phase III
Expected credit Expected credit
losses for the losses for the
Provision for bad debts Expected credit Total
entire duration entire duration
losses over next
(without credit (with credit
12 months
impairment impairment
occurred) occurred)
Beginning balance in the
current period
-- turn to Phase II
- turn to Phase III
- return to Phase II
- return to Phase I
Current accrual
Current return
Rewrite in the current
period
Write-off in the current
period
Other changes
Ending balance 27,329,643.44 27,329,643.44
(5) Classification by nature of payment
Book balance at the end of
Nature of payment Ending book balance
last year
Transactions between related
850,503,678.18 616,401,741.49
parties
Dormitory amount receivable 1,736,004.16 2,083,698.16
Deposits receivable 1,601,089.73 1,750,498.58
Personal receivables 7,615,145.44 8,567,330.57
Others 17,062,837.82 16,962,438.24
Subtotal 878,518,755.33 645,765,707.04
Less: provision for bad debts 27,329,643.44 27,329,643.44
Total 851,189,111.89 618,436,063.60
Notes to Financial Statement Page82
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements of 2022
(III) Long-term equity investments
Ending balance Balance at the end of last year
Item
Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment
in 718,091,322.09 445,002,245.26 273,089,076.83 716,893,717.00 429,592,447.19 287,301,269.81
subsidiaries
Investments
in
associates 79,082,076.44 79,082,076.44
and joint
ventures
Total 797,173,398.53 445,002,245.26 352,171,153.27 716,893,717.00 429,592,447.19 287,301,269.81
1.Investment in subsidiaries
Decrease Provision for
Increase in Ending balance
Balance at the in the impairment in
Investees the current Ending balance of provision for
end of last year current the current
period impairment
period period
Shenzhen Server
Petrochemical 26,650,000.00 26,650,000.00
Supplying Co., Ltd.
Shen Nan Energy
(Singapore) Co., 6,703,800.00 6,703,800.00
Ltd.
Shenzhen New
Power Industrial 71,270,000.00 71,270,000.00 13,709,556.49 13,709,556.49
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 Environment 55,300,000.00 55,300,000.00 1,700,241.58 20,552,688.77
Protection Co., Ltd.
Zhuhai Hengqin
Zhuozhi Investment
140,229,917.00 1,197,605.09 141,427,522.09
Partnership (limited
partnership)
Total 716,893,717.00 1,197,605.09 718,091,322.09 15,409,798.07 445,002,245.26
Notes to Financial Statement Page83
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements off 2022
2. Investments in associates and joint ventures
Increase or decrease in the current period
Investment Cash Ending
Balance
profit and Adjustment of Other dividends balance of
at the Provision Ending
Investees provision
end of Additional Reduced loss other changes or profits
for Others balance
for
last year investment investment recognized comprehensive in declared
impairment
by equity income equity and impairment
method distributed
1. Associates
Jiangsu
Liaoyuan
Environmental
6,208,396.44 72,873,680.00 79,082,076.44
Protection
Technology
Co., Ltd.
Subtotal 6,208,396.44 72,873,680.00 79,082,076.44
Total 6,208,396.44 72,873,680.00 79,082,076.44
Notes to Financial Statement Page84
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements off 2022
(IV)Operating income and operating costs
Amount for the current period Amount for the previous period
Item
Income Cost Income Cost
Main business 331,675,472.61 454,500,441.17 304,694,251.31 409,069,566.58
Other 91,408,429.32 63,394.30 88,487,552.28 491,345.55
Total 423,083,901.93 454,563,835.47 393,181,803.59 409,560,912.13
(V) Investment income
Amount for the current Amount for the
Item
period previous period
Long-term equity investment income by equity 6,208,396.44
Investment income from financial assets held for trading during
57,851,532.85 47,412,260.98
the holding period
Dividend income obtained during the holding period of other
453,587.35 252,016.49
equity instrument investments
Dividends on long-term equity investments 8,397,001.02
Total 72,910,517.66 47,664,277.47
XIII Supplementary information
(I)Statement of current non-recurring profit and loss
Item Amount Description
Profit and loss from disposal of non-current assets -1,171,953.71
Tax refund or mitigate due to examination-and-approval beyond
power or without official approval document
Governmental subsidy reckoned into current profits/losses (not
including the subsidy enjoyed in quota or ration, which are 9,333,093.72
closely relevant to enterprise’s normal business
Capital occupancy expense, collected from non-financial
enterprises and recorded in current profits 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
Profits and losses from exchange of non-monetary assets
Profits and losses from assets under trusted investment or
management
85
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements off 2022
Item Amount Description
Various provision for impairment of assets withdrew due
to force majeure, such as natural disaster
Gains/losses on debt restructuring
Enterprise restructuring costs, such as expenses for staff
placement, integration costs, etc.
Profits and losses of the part arising from transaction in which
price is not fair and exceeding fair value
Current net profits and losses occurred from period-begin to
combination day by subsidiaries resulting from business
combination under same control
Gains/losses arising from contingency that is not related to the
normal operation business of the Company
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,
58,227,971.21
trading financial liability, and financial assets available for sale,
except for the effective hedging business related to normal
operation of the Company
Return of provision of impairment of account receivable which
are treated with separate depreciation test
Profits and losses obtained from external trusted loans
Profits and losses arising from change of fair value of investment
real estate whose follow-up measurement are conducted
according to fair value pattern
Impact on current profits and losses after an one-time adjustment
according to requirements of laws and regulations regarding to
taxation and accounting
Trust fee obtained from trust operation
Other non-operating income and expenses other than those
-635,065.42
mentioned above
Other profit and loss that meet the definition of non-recurring
profit and loss
Subtotal 65,754,045.80
Less：impact on income tax
Less: impact on minority equity -50,287.24
Total 65,804,333.04
(II) ROE and EPS
Profit during the reporting period Weighted EPS (Yuan)
86
Shenzhen Nanshan Power Co., Ltd.
Notes to Financial Statements off 2022
average Diluted earnings per
ROE (%) Basic earnings per share
share
Net profit attributable to shareholders of
-10.43 -0.2657 -0.2657
the listed company
Net profit attributable to shareholders of
the listed company after deducting non- -14.72 -0.3749 -0.3749
recurring profits and losses
Shenzhen Nanshan Power Co., Ltd.
(Official Seal)
April 4, 2023
87
