深圳南山热电股份有限公司2020年年度报告全文
Stock Code: 000037, 200037 Short Form of Stock: Shen Nan Dian A, Shen Nan Dian B No.: 2021-009
深圳南山热电股份有限公司Shenzhen Nanshan Power Co., Ltd.
Annual Report 2020
March 2021
深圳南山热电股份有限公司2020年年度报告全文
Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and seniorofficers of Shenzhen Nanshan Power Co., Ltd. (hereinafter, the Company)guarantee that the Annual Report contains no misrepresentations, misleadingstatements or material omissions, and take all responsibilities, individual and/orjoint, for the reality, accuracy and completion of the whole contents.
Principal of the Company- Chairman Li Xinwei, person in charger ofaccounting works- Director and GM Chen Yuhui, CFO Dai Xiji and person incharge of accounting organ (chief accountants)- deputy GM Shang Ying(act forfinancial works) guarantee that the Financial Report of the annual reportdisclosed is truthful, accurate and complete.
All directors are attended the Board Meeting for annual report deliberation.
The Company has no plans of cash dividend distributed, no bonus shares andhas no share converted from capital reserve either for the year.
Concerning the forward-looking statements with future planning involved in theAnnual 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, for anydiscrepancies, the Chinese version shall prevail. Please read the full reportseriously.
深圳南山热电股份有限公司2020年年度报告全文
Contents
Section I Important Notice, Contents and Interpretation ...... 2
Section II Company Profile and Main Financial Indexes ...... 6
Section III Summary of Company Business ...... 11
Section IV Discussion and Analysis of the Operation ...... 14
Section V Important Events ...... 35
Section VI Changes in shares and particular about shareholders ...... 52
Section VII Preferred Stock ...... 59
Section VIII Convertible Bonds ...... 60
Section IX Particulars about Directors, Supervisors, Senior Officers and Employees ...... 61
Section X Corporate Governance ...... 72
Section XI Corporate bonds ...... 83
Section XII Financial Report ...... 84
Section XIII Documents available for referenc ...... 196
深圳南山热电股份有限公司2020年年度报告全文
Interpretation
| Items | Refers to | Contents |
| Company, the Company, Shen Nan Dian, The listed company | Refers to | Shenzhen Nanshan Power Co., Ltd. |
| CSRC | Refers to | China Securities Regulatory Commission |
| SASAC of Shenzhen Municipal | Refers to | State-owned Assets Supervision and Administration Commission of the People’s Government of Shenzhen Municipal |
| Shenzhen Capital Holdings | Refers to | Shenzhen Capital Holdings Co., Ltd., the name before changed on 3 March 2020 was Shenzhen Capital Co., Ltd. |
| SZ Energy Group | Refers to | Shenzhen Energy Group Co., Ltd. |
| Shenzhen Gas | Refers to | Shenzhen Gas Group Co., Ltd. |
| Shen Nan Dian Zhongshan Company | Refers to | Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. |
| Dongguan Company | Refers to | Formerly Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd, and changed its name to Dongguan Shenran Natural Gas Thermal Power Co., Ltd after 70% equity was agreed to transferred by the Company |
| Shen Nan Dian Engineering Company | Refers to | Shenzhen Shennandian Turbine Engineering Technology Co., Ltd. |
| Shen Nan Dian Environment Protection Company | Refers to | Shenzhen Shen Nan Dian Environment Protection Co., Ltd. |
| Server Company | Refers to | Shenzhen Server Petrochemical Supplying Co., Ltd |
| New Power Company | Refers to | Shenzhen New Power Industrial Co., Ltd. |
| Singapore Company | Refers to | Shen Nan Energy (Singapore) Co., Ltd. |
| Nanshan Power Factory | Refers to | Nanshan Power Factory of Shenzhen Nanshan Power Co., Ltd. |
| Zhongshan Nanlang Power Plant | Refers to | Zhongshan Nanlang Power Plant of Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. |
| Dongguan Gaobu Power Plant | Refers to | Formerly the Dongguan Gaobu Power Plant of Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd (now renamed as Dongguan Shenran Natural Gas Thermal Power Co., Ltd) |
| Audit institution, LIXINZHONGLIAN, accounting organ | Refers to | LIXINZHONGLIAN CPAS (SPECIAL GENERAL PARTNERSHIP) |
| Company Law | Refers to | Company Law of the People’s Republic of China |
| Securities Law | Refers to | Securities Law of the People’s Republic of China |
| Rules Governing the Listing of Stocks | Refers to | Rules Governing the Listing of Stocks on Shenzhen Stock Exchange |
深圳南山热电股份有限公司2020年年度报告全文
| Articles of Association | Refers to | Article of Association of Shenzhen Nanshan Power Co., Ltd. |
| Yuan, ten thousand Yuan, one hundred million | Refers to | Except the special description of the monetary unit, the rest of the monetary unit is RMB Yuan, ten thousand Yuan,one hundred million Yuan |
| Reporting period | Refers to | 1 January 2020 to 31 December 2020 |
深圳南山热电股份有限公司2020年年度报告全文
Section II. Company Profile and Main Financial Indexes
I. Company information
| Short form of the stock | Shen Nan Dian A , Shen Nan Dian B | Stock code | 000037, 200037 |
| Stock exchange for listing | Shenzhen Stock Exchange | ||
| Name of the Company (in Chinese) | 深圳南山热电股份有限公司 | ||
| Short form of the Company (in Chinese) | 深南电 | ||
| Foreign name of the Company (if any) | Shenzhen Nanshan Power Co., Ltd. | ||
| Legal representative | LI XINWEI | ||
| Registrations add. | No.2097 Yueliangwan Avenue, Nanshan District, Shenzhen, Guangdong Province | ||
| Code for registrations add | 518054 | ||
| Offices add. | 16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, Guangdong Province | ||
| Codes for office add. | 518053 | ||
| Company’s Internet Web Site | http://www.nsrd.com.cn | ||
| public@nspower.com.cn; investor@nspower.com.cn | |||
| Secretary to the BOD | Rep. of security affairs | |
| Name | Zhang Jie | |
| Contact add. | 16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, Guangdong Province | |
| Tel. | 0755-26003611 | |
| Fax. | 0755-26003684 | |
| investor@nspower.com.cn |
| Newspaper appointed for information disclosure | China Securities Journal;Securities Times; Hong Kong Commercial Daily |
| Website for annual report publish appointed by CSRC | http://www.cninfo.com.cn/ |
| Preparation place for annual report | Secretariat of the Board of Directors, 17/F, Hantang Building, OCT, |
深圳南山热电股份有限公司2020年年度报告全文
Nanshan District, Shenzhen, Guangdong Province
IV. Registration changes of the Company
| Organization code | 91440300618815121H |
| Changes of main business since listing (if applicable) | N/A |
| Previous changes of controlling shareholders (if applicable) | No controlling shareholder |
| Name of CPA | LIXINZHONGLIAN CPAS (SPECIAL GENERAL PARTNERSHIP) |
| Offices add. for CPA | 1-1-2205-11, North Zone, Financial and Trade Center, No. 6865, Asia Road, Pilot Free Trade Zones (Dong-jiang Free Trade Port Zone), Tianjin |
| Signing Accountants | Liu Xinfa, Cao Wei |
| 2020 | 2019 | Changes over last year | 2018 | |
| Operating income (RMB) | 985,253,831.58 | 1,222,577,954.53 | -19.41% | 1,884,937,109.00 |
| Net profit attributable to shareholders of the listed Company (RMB) | 64,024,291.32 | 24,900,956.73 | 157.12% | 19,253,766.12 |
| Net profit attributable to shareholders of the listed Company after deducting non-recurring gains and losses (RMB) | 7,601,038.59 | 14,685,745.16 | -48.24% | -13,515,247.29 |
| Net cash flow arising from operating activities (RMB) | 260,725,409.02 | 202,943,908.61 | 28.47% | 236,563,160.38 |
| Basic earnings per share (RMB/Share) | 0.1062 | 0.0413 | 157.14% | 0.0319 |
深圳南山热电股份有限公司2020年年度报告全文
| Diluted earnings per share (RMB/Share) | 0.1062 | 0.0413 | 157.14% | 0.0319 |
| Weighted average ROE | 3.15% | 1.25% | 1.90% | 0.98% |
| Year-end of 2020 | Year-end of 2019 | Changes over end of last year | Year-end of 2018 | |
| Total assets (RMB) | 3,020,830,930.06 | 3,219,261,720.55 | -6.16% | 3,307,148,289.92 |
| Net assets attributable to shareholder of listed Company (RMB) | 2,054,741,847.64 | 2,002,772,808.24 | 2.59% | 1,977,871,851.51 |
| First quarter | Second quarter | Third quarter | Fourth quarter | |
| Operating income | 228,717,033.81 | 289,433,572.40 | 286,084,887.31 | 181,018,338.06 |
| Net profit attributable to shareholders of the listed Company | -14,023,020.62 | 66,063,519.04 | 76,089,903.65 | -64,106,110.75 |
| Net profit attributable to shareholders of the listed Company | -19,987,886.90 | 30,137,617.32 | 69,619,698.52 | -72,168,390.35 |
深圳南山热电股份有限公司2020年年度报告全文
| after deducting non-recurring gains and losses | ||||
| Net cash flow arising from operating activities | 22,023,624.41 | 47,912,937.05 | 140,653,281.35 | 50,135,566.21 |
| Items | 2020 | 2019 | 2018 | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | -1,144,118.91 | -527,109.02 | The investment income obtained from the sale of 70% equity of Dongguan Company | |
| Governmental subsidy calculated into current gains and losses(while closely related with the normal business of the Company, excluding the fixed-amount or fixed-proportion governmental subsidy according to the unified national standard) | 13,833,445.53 | 6,402,848.81 | 5,124,971.79 | Receive unemployment insurance premium refunds and apportionment of government subsidies related to assets |
| Gains/losses of debt restructuring | 7,593,783.90 | Revert other payable that are not required to be paid | ||
| Gains/losses arising from contingency that without relation with the normal operation business of the Company | 6,584,816.78 | Reversal of the accrual liabilities | ||
| Switch back of the impairment for receivables and contract assets that has impairment test independently | 12,000.00 | |||
| Other non-operating income and expenditure except for the aforementioned items | -118,229.62 | 5,578,877.22 | 37,044,913.53 | |
| Other gains/losses items that meets the definition of non-recurring gains/losses | 33,534,881.55 | Income from disposal of the 70% equity of Dongguan Company in the Year |
深圳南山热电股份有限公司2020年年度报告全文
| Less: impact on income tax | 152,683.61 | 195,823.19 | 6,525,056.89 | |
| Impact on minority shareholders’ equity (post-tax) | 3,708,642.89 | 1,055,582.25 | 2,875,815.02 | |
| Total | 56,423,252.73 | 10,215,211.57 | 32,769,013.41 | -- |
深圳南山热电股份有限公司2020年年度报告全文
Section III. Summary of Company Business
I. Main businesses of the Company in the reporting period
The Company shall comply with the disclosure requirements of Guidelines of Information Disclosure for Industry on ShenzhenStock Exchange No.15- Listed Companies are Engaged in Electricity-related BusinessThe company is specialized in power and thermal supply, as well as providing technical consulting and technical services for powerstations. At the end of reporting period, the Company holds two wholly-owned and holding gas turbine plants, which equipped withfive sets of 9E gas steam combined cycle power generating units, with total installed capacity up to 900,000 KW (Nanshan PowerFactory: 3×180000KW, Zhongshan Nanlang Power Plant: 2×180000KW).The two gas turbine plants are located in the power-loadcenter of the Pearl River Delta, and it is the main peak-regulating power supply in the region which is currently in normal productionand operation state.
During the reporting period, the company's main power business faced many difficulties such as the spread of the COVID-19epidemic, the reduction of the benchmark electricity price on the grid, and the further increase of the electricity market transactionelectricity sold below the benchmark electricity price on the grid. In order to minimize the negative impact of the externalenvironment on the company’s business performance, the company has implemented a series of business layout and managementchanges with innovative thinking and perseverance, clarified annual business objectives and policies, and adopted targeted majormeasures. On the basis of safety production management, we have continuously strengthened economic operation management, andconformed to the trend of accelerating the process of power market reform in Guangdong Province. We organized two subordinatepower plants to actively participate in the marketing competition and achieved good results, which created favorable conditions forachieving the goal of operating profitability. In 2020, the two subordinate power plants totally completed electricity quantity (on-gridelectricity quantity + electricity marketing quantity) of 2.127 billion KWH,the actual on-grid electricity quantity of 874 million KWHand electricity marketing quantity of 1.253 billion KWH.Completion of the electricity for subordinate power plants are as: NanshanPower Factory completed 761 million KWH of on-grid electricity and electricity marketing quantity of 379 million KWH,the fullelectricity quantity totaled 1.14 billion KWH;Zhongshan Nanlang Power Plant completed 113 million KWH of on-grid electricityand electricity marketing quantity of 874 million KWH,the full electricity quantity totaled 987 million KWH.
During the reporting period, the company not only strive to improve the operating efficiency of its main business of electric power,but also made great efforts to the operation and expansion of related businesses.The subordinate Shen Nan Dian EngineeringCompany continued to develop the technical consultation and technology service business for the construction of domestic andinternational gas turbine power stations. Shen Nan Dian Environmental Protection Company engaged in the drying treatment of wetsludge in sewage treatment plants by utilizing the waste heat generated by gas turbines, and the annual processing capacity of wetsludge was 132,600 tons, which realized the reduction and harmless treatment of sludge and the comprehensive utilization ofresources.
深圳南山热电股份有限公司2020年年度报告全文
II. Major changes in main assets
1. Major changes in main assets
| Major assets | Note of major changes |
| Equity assets | Equity assets have 20.30% increased, mainly due to the outbound investment for Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) during the reporting period |
| Fixed assets | Fixed assets have 33.00% declined, mainly due to the sale of 70% equity of Dongguan Company in the reporting period, and Dongguan Company was no longer included in consolidate scope at period-end. |
| Intangible assets | Intangible assets have 51.55% declined, mainly due to the sale of 70% equity of Dongguan Company in the reporting period, and Dongguan Company was no longer included in consolidate scope at period-end. |
| Construction in process | Construction in process has 35.64% declined, mainly due to the sale of 70% equity of Dongguan Company in the reporting period, and Dongguan Company was no longer included in consolidate scope at period-end; and the accrual of assets impairment for cogeneration project. |
| Account receivable | Account receivable has 52.12% declined, mainly due to the sale of 70% equity of Dongguan Company in the reporting period, and Dongguan Company was no longer included in consolidate scope at period-end. |
| Account paid in advance | Account paid in advance has 57.80% declined, mainly due to the sale of 70% equity of Dongguan Company in the reporting period, and Dongguan Company was no longer included in consolidate scope at period-end. |
| Other current assets | Other current assets have 106.02% increased, mainly due to the increase in purchasing financial products during the Period. |
| Account payable | Account payable has 53.17% declined, mainly due to the payable for natural gas. |
| Tax payable | Tax payable has 64.97% declined, mainly due to the sale of 70% equity of Dongguan Company in the reporting period, and Dongguan Company was no longer included in consolidate scope at period-end. |
| Other account payable | Other account payable has 38.16% declined, mainly due to the sale of 70% equity of Dongguan Company in the reporting period, and Dongguan Company was no longer included in consolidate scope at period-end. |
深圳南山热电股份有限公司2020年年度报告全文
1. A mature and completed governance structure & a rigorous and standardized risk-control mechanism.As a listed company withover 20-year baptism in securities market on the main board, the Company has been strictly in accordance with the Company Law,Securities Laws, Rules Governing the Listing of Stocks and relevant requirements of laws and regulations of the CSRC andShenzhen Stock Exchange, and continuously improved the corporate governance and regulated the operation. The “Three Meetings”operation was normative and efficient, and the internal management was streamlined and orderly. Meanwhile, the Companycontinuously reinforcing the supervision and auditing role on standard operation and internal control of the listed company played bysupervisory committee and auditing authority; effectively prevent and avoid the risks while improving the management anddecision-making efficiency.
2. Hard-working and innovative management culture, and pragmatic and efficient operating mechanism. Combining its own actualsituation,the Company has broken the barriers of the original traditional business model, and greatly improved the decision-makingefficiency and work performance by establishing four major operation and management centers, including a power sales center, afuel center, a financial center, and an information center, innovating the management model of production coordination and safetysupervision, and effectively integrating business resources; the Company set up a capital (operation) center and set up anaccounting sharing center to comprehensively balance the improvement of production, operation and management efficiency; andestablish a science & technology innovation committee with purpose of stimulating the enthusiasm of majority of the employees tostudy technology, improve themselves and innovate continuously, the supervision and management of production technology haveachieved a new step. While the Company built an efficient operating mechanism, the leadership team served as role models,combined a series of effective management measures, such as deepening human resources reform and the "military order" assessmentmechanism, advocated and built the management culture of unity, hard work, innovation and enterprise throughout the Company,which laid a good management foundation for the Company to deeply explore its internal potential and actively seek externalopportunities.
3. A loyal and dedicated management team & professional and progressive technical personnel. With more than 30 years of hardwork and the company’s influence in the gas turbine power generation industry and the Company’s pioneering and innovative spiritand enterprising spirit, the Company has absorbed and trained a group of technical experts and professionals in the gas turbineindustry, accumulated rich experience in the construction and operation management of gas turbine power plants.In order to adapt tothe market situation of the further propulsion of the electricity trading market-oriented reform in Guangdong Province, the Companyformed a team of professionals to study the electricity trading strategy and build a mathematical model of electricity trading. Itaccumulated rich experience in electricity marketing, which laid a solid foundation for the Company to actively respond to theelectricity market reform.Further more, Shen Nan Dian Engineering Company has provided professional services such as technicalconsulting, commissioning and maintenance for dozens of domestic and international gas turbine power stations. The Company'straining center has successively undertaken the technician training business for tens of power plants at home and abroad, and hasbecome a renowned professional training base in the domestic gas turbine industry, and has established a good reputation andprofessional brand image in the industry.The Company also has a group of management talents with innovative consciousness andfighting spirit, based on the principle of being highly responsible to the Company, they lead all employees to make unremittingefforts for the Company’s continuous operation and transformation development.
深圳南山热电股份有限公司2020年年度报告全文
Section IV. Discussion and Analysis of the Operation
I. Introduction
2020 marks the 40th anniversary of the establishment of the Shenzhen Special Economic Zone, and is the final year of the "13thFive-Year Plan" and also an extraordinary year. Facing the severe test brought by the COVID-19 epidemic and the complex andchangeable domestic and foreign environment, under the strong leadership of the Party Central Committee with Comrade Xi Jinpingat the core, the whole country has coordinated the promotion of epidemic prevention and control and the economic and socialdevelopment work, the situation of epidemic prevention and control has continued to improve, and economic operations have beensteadily recovering. The power industry has resolutely implemented the decisions and deployments of the Party Central Committeeand the State Council to provide a solid power guarantee for the prevention and control of the epidemic and the resumption of work,production, business, and market resumption of the entire society. Faced with the double test of the impact of the epidemic and theindustry situation, the company forged ahead against the trend, strictly implemented the deployment and requirements ofgovernments at all levels and higher-level units, conscientiously implemented epidemic prevention and control, at the same time,overcame difficulties to do a good job in production and operation management, and went all out to minimize the negative impact ofthe epidemic on the company. After the full resumption of work and production, the company has stepped up efforts to focus on safeproduction, stock operation, and transformation development. Under the premise of ensuring safety and epidemic prevention andcontrol, the company has achieved good results in all aspects of production, operation, and management.
After the test of the epidemic at the beginning of the year, the social economy continued to recover, and the electricity consumptionand power load of the whole society in Guangdong Province continued to grow. In 2020, the total electricity consumption of thewhole society in Guangdong Province was 692.6 billion kWh, an increase of 3.44% on a year-on-year basis (data from China ElectricPower News); the total electricity consumption of Shenzhen was 98.3 billion kWh, a year-on-year increase of 1.06% (data fromShenzhen Power Supply Bureau), which hit a new high. The company's subordinate Nanshan Power Factory and Zhongshan NanlangPower Plant actually completed 874 million kilowatt-hours of on-grid power, an increase of 13.4% on a year-on-year basis; theaverage annual utilization hours of the generator sets of the two power plants were 986 hours, and the average annual plant powerconsumption rate was 3.43%. In 2020, the full-process operation of the Guangdong Power Spot Market continued to advance, and thescale of market-based electricity trading continued to expand, with a total of 248.9 billion kWh of transactions, a year-on-yearincrease of 30% (data from the website of Guangdong Power Exchange Center). During the reporting period, Nanshan Power Factoryand Zhongshan Nanlang Power Plant signed a total of 1.529 billion kWh of bilateral negotiated contracts for 2020, a year-on-yearincrease of 35.91%; the two power plants sold a total of 803 million kWh of electricity, a year-on-year decrease of 1.56%.
During the reporting period, the company continued to take the "1+5" strategic road map as the guide, and made every effort topromote the implementation of the "125" project. For the company's normal operation and sustainable development, the companyworked hard to move forward, effectively did a good job in the epidemic prevention and control and the safe production,simultaneously advanced stock operation and transformation development, ensured the safety and health of all employees andall-round safety and order, and achieved historic performance breakthroughs and gratifying work progress. The main work carriedout during the reporting period was as follows:
1. Complementary resources and strategic cooperation for mutual development. After comprehensive analysis and prudentialresearch and judgment, the company transferred 70% of its equity in Dongguan Company to Shenzhen Gas Corporation, which laid
深圳南山热电股份有限公司2020年年度报告全文
the foundation for obtaining favorable resource support while revitalizing the company’s stock assets and reducing the company’soperating pressure, through state-owned asset coordination and resource complementarity, the company strive to achieve a deepconnection between high-quality resources and high-quality markets, enhance the overall competitiveness of both parties in theirrespective fields, and maximize the benefits.
2. Strict supervision, safety and environmental protection reaching the standards. The company actively overcame the adverse effectsof the COVID-19 epidemic, strictly implemented the security principal responsibility at all levels and the safety responsibility systemfor all employees, consolidated the basis for safety production, established and completed a series of safety index management andproduction guarantee systems, continued to improve safety culture, and strengthened the risk management and control and theconstruction of hidden danger investigation and treatment, and the safety work situation continued to improve. During the reportingperiod, the company completed various pollution reduction tasks, no environmental pollution accidents occurred, and no safetyproduction liability accidents occurred.
3. In-depth study and refined calculation, and scientific marketing for achieving good results. The company conducted in-depthresearch on power market marketing strategies and competition methods, strived to seize market opportunities, actively strived foreconomic power share, and obtained competitive advantages through superlative operations, and maximized economic benefits,meanwhile, reasonably arranged units for power generation and production according to changes in gas prices and schedulingrequirements, and created good operating income.
4. Continuous innovation, production management for promoting operation. The company closely focused on the core objectives ofthe annual operation, and continuously adjusted and optimized the production management mode, which further improved the safetyand reliability of the operation of production equipment. At the same time, the company established the Science and TechnologyInnovation Committee to create a good atmosphere for scientific and technological innovation, so as to further motivate employees tostudy technology, improve themselves, and continuously innovate, and help improve the company's stock asset production andoperation performance.
5. Turn crises into opportunities and diversify operations to create benefits. Shennandian Environmental Protection Company alwaysadhered to the concept of environmental protection and actively fulfilled its social responsibilities. It treated approximately 132,600tons of wet sludge throughout the year, making positive contributions to the "Bluer Sky and Clearer Water" project in the GreaterBay Area; Shennandian Engineering Company overcame huge difficulties, took effective measures to strictly implement theepidemic prevention and control of overseas engineering projects to ensure the safety and health of the expatriate employees. At thesame time, it adjusted its business strategy in a timely manner, actively explored the domestic technical service market, and achievedgood results.
6. Intensive cultivation, decreasing costs and increasing efficiency to solve problems. In order to strengthen capital management andensure capital safety, the company adopted a series of measures such as the overall management of capital in the system, the increaseof the proportion of structural deposit funds, and the replacement of high-interest loans with low-interest loans through the “sharedcapital pool” in the operating system to improve the use efficiency and profitability of own funds, which reduced capital costs, savedfinancial expenses, and provided necessary capital reserves for the company’s capital operations. At the same time, the companyestablished a capital (operation) center and an accounting sharing center to further improve capital operations and financialmanagement efficiency, so that financial accounting and management were further integrated into the company’s strategictransformation and decision-making in various industrial chains.
深圳南山热电股份有限公司2020年年度报告全文
7. Improve the position and actively fight against the epidemic. The company’s party committee adhered to the guidance of socialismwith Chinese characteristics in Xi Jinping’s new era, and promoted the deep integration of party building and company management.After the outbreak of the COVID-19 epidemic, the company's party committee mobilized all employees to fight against the epidemicand prevent the epidemic in accordance with the requirements of the party committee of the higher level and the company, andencouraged party members to play a pioneering and exemplary role. The main leaders of the company were on duty throughout theentire process, dynamically grasped the situation of the epidemic and made timely work decisions. After the epidemic prevention andcontrol entering the normalization stage, the company’s special epidemic prevention and control agencies at all levels have continuedto perform their duties, efficiently coordinate, and strictly implement the national and local government's epidemic prevention andcontrol work deployment to ensure the continuous and orderly progress of the epidemic prevention and control work. During thereporting period, there were no confirmed cases, suspected cases, or asymptomatic infections of the COVID-19 in all units,enterprises, and employees dispatched to overseas project sites in the company's system.
In the year of 2020, the Company has achieved a revenue in operation of 985 million Yuan, the net profit attributable to shareholderof listed company amounted as 64.0243 million Yuan and basic EPS was 0.11 Yuan.
The Company shall comply with the disclosure requirements of Guidelines of Information Disclosure for Industry on ShenzhenStock Exchange No.15- Listed Companies are Engaged in Electricity-related Business
Main production
| Item | Current period (Dongguan Gaobu Power Plant excluded) | Same period last year (Dongguan Gaobu Power Plant excluded) | Same period last year (Dongguan Gaobu Power Plant included) |
| Gross installed capacity (10,000 kilowatts) | 90 | 90 | 126 |
| Installed capacity of newly commissioned units (10,000 kilowatts) | 0 | 0 | 0 |
| Planned installed capacity of approved projects (10,000 kilowatts) | 0 | 0 | 0 |
| Planned installed capacity of projects under construction (10,000 kilowatts) | 0 | 0 | 0 |
| Generating capacity (100 million KWH) | 8.87 | 7.88 | 15.08 |
| On-grid electricity or electricity sales (100 million KWH) | 8.74 | 7.71 | 14.83 |
| Average on-grid tariff or sales price (RMB/KWH, tax included) | 0.6213 | 0.6410 | 0.6393 |
| Average rate of electricity consumption from power station(%) | 3.43 | 3.46 | 3.12 |
| Utilization time from power station (Hours) | 986 | 876 | 1,197 |
深圳南山热电股份有限公司2020年年度报告全文
II. Main business analysis
1. Introduction
Found more in I. Introduction in Discussion and Analysis of the Operation
2. Revenue and cost
(1) Constitute of operation revenue
In RMB/CNY
| 2020 | 2019 | Increase/decrease y-o-y | |||
| Amount | Ratio in operation revenue | Amount | Ratio in operation revenue | ||
| Total operation revenue | 985,253,831.58 | 100% | 1,222,577,954.53 | 100% | -19.41% |
| Industry classification | |||||
| Energy industry | 878,600,297.92 | 89.18% | 1,082,001,858.50 | 88.50% | -18.80% |
| Engineering service | 41,094,571.29 | 4.17% | 62,635,550.65 | 5.12% | -34.39% |
| Sludge drying | 62,789,507.95 | 6.37% | 70,420,653.67 | 5.76% | -10.84% |
| Other business | 2,769,454.42 | 0.28% | 7,519,891.71 | 0.62% | -63.17% |
| Product classification | |||||
| Electricity sales | 878,600,297.92 | 89.18% | 1,082,001,858.50 | 88.50% | -18.80% |
| Engineering service | 41,094,571.29 | 4.17% | 62,635,550.65 | 5.12% | -34.39% |
| Sludge drying | 62,789,507.95 | 6.37% | 70,420,653.67 | 5.76% | -10.84% |
| Other business | 2,769,454.42 | 0.28% | 7,519,891.71 | 0.62% | -63.17% |
| Region classification | |||||
| Domestic | 985,253,831.58 | 100.00% | 1,222,577,954.53 | 100.00% | -19.41% |
| overseas | |||||
深圳南山热电股份有限公司2020年年度报告全文
| Operating revenue | Operating cost | Gross profit ratio | Increase/decrease of operating revenue y-o-y | Increase/decrease of operating cost y-o-y | Increase/decrease of gross profit ratio y-o-y | |
| Product classification | ||||||
| Electricity sales | 878,600,297.92 | 724,649,204.65 | 17.52% | -18.80% | -25.26% | 68.53% |
| Engineering service | 41,094,571.29 | 28,587,448.80 | 30.43% | -34.39% | -35.71% | 4.92% |
| Sludge drying | 62,789,507.95 | 41,089,819.34 | 34.56% | -10.84% | -12.82% | 4.51% |
| Region classification | ||||||
| Domestic | 982,484,377.16 | 794,326,472.79 | 19.15% | -19.14% | -25.14% | 51.15% |
| Industries | Item | Unit | 2020 | 2019 | Increase/decrease y-o-y |
| Electric Power | Sales volume | 100 million KWH | 8.74 | 7.71 | 13.36% |
| Output | 100 million KWH | 8.87 | 7.88 | 12.56% | |
| Storage | 100 million KWH | 0 | 0 |
| Industries | Item | 2020 | 2019 | Increase/decrease |
深圳南山热电股份有限公司2020年年度报告全文
| Amount | Ratio in operation cost | Amount | Ratio in operation cost | y-o-y | ||
| Energy industry | Power, heat supply | 724,649,204.65 | 91.21% | 969,503,809.30 | 91.30% | -25.26% |
| Engineering service | Engineering cost | 28,587,448.80 | 3.60% | 44,467,064.24 | 4.19% | -35.71% |
| Other business | Sludge drying etc. | 41,287,156.94 | 5.20% | 47,945,840.31 | 4.52% | -13.89% |
| Products | Item | 2020 | 2019 | Increase/decrease y-o-y | ||
| Amount | Ratio in operation cost | Amount | Ratio in operation cost | |||
| Electricity sales | Power supplying | 724,649,204.65 | 91.21% | 969,503,809.30 | 91.30% | -25.26% |
| Engineering service | Engineering cost | 28,587,448.80 | 3.60% | 44,467,064.24 | 4.19% | -35.71% |
| Sludge drying | Sludge treatment | 41,089,819.34 | 5.17% | 47,133,619.81 | 4.44% | -12.82% |
| Other business | Other | 197,337.60 | 0.02% | 812,220.50 | 0.08% | -75.70% |
| Total top five clients in sales (RMB) | 965,521,314.34 |
| Proportion in total annual sales volume for top five clients | 97.99% |
| Proportion in total annual sales for the related party’s sales in top five clients’ sales | 0.00% |
深圳南山热电股份有限公司2020年年度报告全文
| Serial | Name | Sales (RMB) | Proportion in total annual sales |
| 1 | Shenzhen Power Supply Bureau Co., Ltd. | 466,123,345.95 | 47.31% |
| 2 | Guangdong Power Grid Co., Ltd. | 406,928,606.04 | 41.30% |
| 3 | Shenzhen Municipal Water Affairs Bureau | 50,393,340.02 | 5.11% |
| 4 | China Machinery Engineering Corporation | 29,679,854.40 | 3.01% |
| 5 | Shenzhen Water Group | 12,396,167.93 | 1.26% |
| Total | -- | 965,521,314.34 | 97.99% |
| Total purchase amount from top five suppliers (RMB) | 486,376,291.21 |
| Proportion in total annual purchase amount for top five suppliers | 81.60% |
| Proportion in total annual purchase amount for the related party’s amount in top five suppliers | 2.10% |
| Serial | Name | Purchases (RMB) | Proportion in total annual purchases |
| 1 | Shenzhen Gas Group Co., Ltd. | 397,500,609.59 | 66.70% |
| 2 | CNOOC Gas Power Group Co., Ltd. | 43,219,844.71 | 7.25% |
| 3 | Shenzhen Energy Gas Investment Holding Co., Ltd. | 31,369,620.55 | 5.26% |
| 4 | Shenzhen Power Supply Bureau | 7,706,496.74 | 1.29% |
| 5 | Shenyang LSE Power Service Co., Ltd. | 6,579,719.62 | 1.10% |
| Total | -- | 486,376,291.21 | 81.60% |
| 2020 | 2019 | Increase/decrease y-o-y | Note of major changes | |
| Sales expense | 4,979,915.34 | 5,599,305.43 | -11.06% | Decreased due to the cost of dry sludge treatment from Shen Nan Dian Environment Protection Company declined |
| Management expense | 111,618,225.09 | 109,541,900.18 | 1.90% |
深圳南山热电股份有限公司2020年年度报告全文
| Financial expense | -66,657.96 | 22,310,708.04 | -100.30% | Decreased due to the loan rate declined and financial gains increased |
| R&D expense | 8,490,882.58 | 0 | Increased due to the new technology R&D costs from Shen Nan Dian Environment Protection Company and Shen Nan Dian Engineering Company |
| 2020 | 2019 | Change proportion | |
| Number of R&D personnel (person) | 35 | 0 | |
| Proportion of R&D personnel | 8.68% | - | |
| Investment for R&D (RMB) | 8,490,882.58 | 0 | |
| R&D investment/Operating income | 0.86% | - | |
| Capitalization of R&D investment (RMB) | 0 | 0- | |
| Capitalization of R&D investment/R&D investment | - | - |
| Item | 2020 | 2019 | Y-o-y changes |
| Subtotal of cash in-flow from operation activity | 1,156,114,679.30 | 1,413,997,516.01 | -18.24% |
| Subtotal of cash out-flow from operation activity | 895,389,270.28 | 1,211,053,607.40 | -26.07% |
| Net cash flow from operation activity | 260,725,409.02 | 202,943,908.61 | 28.47% |
深圳南山热电股份有限公司2020年年度报告全文
| Subtotal of cash in-flow from investment activity | 40,321,341.78 | 35,486,018.97 | 13.63% |
| Subtotal of cash out-flow from investment activity | 528,860,991.95 | 193,242,132.78 | 173.68% |
| Net cash flow from investment activity | -488,539,650.17 | -157,756,113.81 | 209.68% |
| Subtotal of cash in-flow from financing activity | 1,318,118,917.79 | 1,465,170,000.00 | -10.04% |
| Subtotal of cash out-flow from financing activity | 1,096,793,475.57 | 1,653,932,661.32 | -33.69% |
| Net cash flow from financing activity | 221,325,442.22 | -188,762,661.32 | -217.25% |
| Net increased amount of cash and cash equivalent | -6,888,728.75 | -143,466,610.74 | -95.20% |
| Amount | Ratio in total profit | Note | Whether be sustainable (Y/N) |
深圳南山热电股份有限公司2020年年度报告全文
| Investment income | 27,809,087.38 | 40.14% | Income from disposal of the 70% equity of Dongguan Company | N |
| Gains/losses of fair value changes | 0.00% | |||
| Assets impairment | -43,718,679.38 | -63.10% | Inventory depreciation, impairment of fixed assets and construction in progress are accrual in the Year | N |
| Non-operating income | 6,585,316.78 | 9.50% | Reversal of the accrual liabilities | N |
| Non-operating expenditure | 153,719.62 | 0.22% | The overdue fine | N |
| Year-end of 2020 | Year-begin of 2020 | Ratio changes | Notes of major changes | |||
| Amount | Ratio in total assets | Amount | Ratio in total assets | |||
| Monetary fund | 764,601,272.21 | 25.31% | 773,209,854.84 | 24.02% | 1.29% | |
| Account receivable | 85,293,052.88 | 2.82% | 177,310,433.51 | 5.51% | -2.69% | |
| Inventory | 100,245,529.06 | 3.32% | 124,686,443.61 | 3.87% | -0.55% | |
| Investment real estate | 2,205,189.40 | 0.07% | 2,401,327.00 | 0.07% | 0.00% | |
| Long-term equity investment | 8,893,408.86 | 0.29% | 14,619,203.03 | 0.45% | -0.16% | The long-term equity investment measured by equity was recognized as the investment income |
| Fix assets | 925,745,208.55 | 30.65% | 1,381,675,872.68 | 42.92% | -12.27% | Equity of Dongguan Company was transferred in the Year, which was not included in the consolidate scope |
| Construction in process | 42,782,712.98 | 1.42% | 66,474,630.23 | 2.06% | -0.64% | |
深圳南山热电股份有限公司2020年年度报告全文
| Short-term loans | 675,528,858.48 | 22.36% | 881,075,378.48 | 27.37% | -5.01% | Bank loans declined |
| Other current assets | 917,288,244.54 | 30.37% | 445,236,731.33 | 13.83% | 16.54% | Purchase of the financial products increased |
| Item | Opening amount | Gain/loss of fair value changes in the Period | Cumulative change of fair value recorded into equity | Impairment accrual in the Period | Amount purchased in the Period | Amount sold in the Period | Other changes | Ending amount |
| Other equity instrument investment | 60,615,000.00 | 21,000,000.00 | 81,615,000.00 |
| Investment amount in the Period (RMB) | Investment amount at same period last year (RMB) | Changes (+,-) |
| 21,272,400.00 | 0.00 | -- |
| Investe | Main | Form | Invest | Shareh | Capita | Partner | Time | Type | Progres | Antic | Invest | With | Disclo | Disclosure index (if |
深圳南山热电股份有限公司2020年年度报告全文
| d company | business | of investment | ment amount | olding ratio | l source | horizon | s as of the balance sheet date | ipated income | ment gains/losses in the Period | lawsuit involved (Y/N) | sure date (if any) | any) | ||
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | Equity investment, venture capital | Newly established | Plans to invested 280 million yuan | 99.96% | Own fund | China Science and Tech Innovation Venture Capital Management | 5-year | Limited partnership | 21,272,400.00 Yuan has invested | Not applicable | -77,609.46 | N | 2020-10-23 | Notice on the Investment for Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) ; Notice No.: 2020-051 released on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website |
| Total | -- | -- | Plans to invested 280 million yuan | -- | -- | -- | -- | -- | -- | -77,609.46 | -- | -- | -- |
深圳南山热电股份有限公司2020年年度报告全文
5.Use of proceeds
□ Applicable √ Not applicable
The Company had no use of proceeds in the reporting period.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2. Sales of major equity
√Applicable □Not applicable
| Counterpart | Assets sold | Sales day | Trading price (10 thousand Yuan) | Net profit contributed by the sold assets from period-begin to date for sales (in 10 thousand Yuan) | Impact on the Company | Ratio of the net profit from equity sales in total net profit of the Company | Pricing principal | Whether it was a related transaction (Y/N) | Relationship with the counter party | Ownership transferred completely or not (Y/N) | Implemented on schedule (Y/N), explained the reasons and countermeasure for not completed on schedule | Disclosure day | Disclosure index |
| Shenzhen Gas Group Co., Ltd. | 70% equity of Dongguan Company(40% equity held directly by the Compan | 2020-04-09 | 10,498 | -445.29 | The transaction is conductive to revitalizing the Company’s stock assets, reducin | 52.38% | Pricing principle in the agreement is that the negotiated transfer price of underlying | N | Not applicable | Y | Y | 2020-07-04 | Notice on Completion of the 70% Equity of Shen Nan Dian (Dongguan) Weimei |
深圳南山热电股份有限公司2020年年度报告全文
| y, and 30% equity held through wholly-owned subsidiary Syndisome Company indirectly) | g the operating pressure, increasing current earnings of the Company and promoting the realization of the strategic transformation goals. | assets (70% equity of Dongguan Company )is higher than the appraisal value of the underlying assets issued by Watson (Beijing) International Assets Appraisal Co., Ltd. | Electric Power Co., Ltd. Transferred, Notice No.: 2020-032; released on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website. |
| Name | Type | Main business | Register capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Shenzhen New Power Industrial Co., Ltd. | Subsidiary | Technology development regarding to application of remaining heat (excluding restricted items) and power generation with remaining heat. Add: power generation through burning machines. | RMB 113.85 million | 195,234,505.69 | 159,023,218.72 | 156,442,406.36 | 3,519,904.17 | 3,490,204.17 |
深圳南山热电股份有限公司2020年年度报告全文
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | Subsidiary | Sludge drying; the design and operations management of sludge treatment and disposal facilities and engineering; the technology development, technology transfer, technical advice, technical services of environmental pollution control and comprehensive utilization domain; (Except for the projects required to be approved before registration by laws, administrative regulations, or decisions and stipulation of the State Council, the restricted items must be approved before operating) | RMB 79 million | 148,046,485.51 | 122,151,647.08 | 62,813,507.95 | -1,483,577.30 | -2,844,281.20 |
| Shenzhen Shennandian Turbine Engineering Technology Co., Ltd. | Subsidiary | Engage in the technical advisory service for the construction projects of gas-steam combined cycle power plant (station), and undertake the maintenance and overhaul of the operation equipment of gas-steam combined cycle power plant (station). Import and export of goods and technologies (excluding distribution and state monopoly commodities) | RMB 10 million | 50,955,994.72 | 37,483,831.95 | 41,094,571.29 | 1,433,736.83 | 1,433,736.83 |
| Shenzhen Server Petrochemical Supplying Co., Ltd | Subsidiary | Self-supporting or import agent business of fuel oil; trade (excluding production and storage and transportation) in diesel, lubricating oil, liquefied petroleum gas, natural gas, compressed gas and liquefied gas, chemical | RMB 53.3 million | 114,126,886.29 | 91,077,053.12 | 1,186,761.96 | -9,134,640.31 | -2,658,553.15 |
深圳南山热电股份有限公司2020年年度报告全文
| products (excluding dangerous chemicals); investment, construction and technical supports in liquefied petroleum gas, natural gas and related facilities; import and export businesses and domestic trade of goods and technologies (excluding franchise, exclusive control, and monopoly products); leasing business. Licensed projects: fuel oil warehousing business (except for refined oil); general freight transport, special transportation of goods (containers), special transportation of goods (tank) | ||||||||
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | Subsidiary | Gas turbine power generation, waste heat power generation, power supply and heating(heating pipe network excluded), leasing of wharf, oil depots and power equipment felicities (excluding refined oil, dangerous chemicals, or flammable and explosive goods); leasing of land-use right; non-residential real estate leasing | RMB 746.8 million | 550,680,597.89 | -58,648,065.13 | 202,539,109.51 | 35,700,722.96 | 35,690,722.96 |
| Shen Nan Energy (Singapore) Co., Ltd. | Subsidiary | Agent for oils trade and spare parts of gas turbine | US $ 0.9 million | 138,242,374.33 | 135,664,163.76 | 0.00 | -11,959,363.97 | -11,959,363.97 |
| Zhuhai Hengqin | Subsidiary | Equity investment, venture capital | RMB 21.358 | 21,282,423.33 | 21,280,423.33 | 0.00 | -77,609.46 | -77,609.46 |
深圳南山热电股份有限公司2020年年度报告全文
| Zhuozhi Investment Partnership (Limited Partnership) | million |
| Company name | Way acquired and disposed in reporting period | Impact on overall production, operation and performance |
| Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd (named as Dongguan Shenran Natural Gas Thermal Power Co., Ltd after transferred) | Transfer the 70% equity of Dongguan Company directly and indirectly held by the Company by agreement | The transaction is conductive to revitalizing the Company’s stock assets, reducing the operating pressure and achieving the income from equity transfer |
深圳南山热电股份有限公司2020年年度报告全文
14th Five-Year Plan, under the industry background of continuing to promote quality, efficiency, and power changes, and on thebasis of expanding domestic demand, green development and innovation drive will become a new development model andopportunity for power companies. In recent years, the power industry in Guangdong Province has shown a new development trend ofcontinuous optimization of the energy structure and continuous innovation and upgrading of the development of the energy industry,opportunities and challenges for industry development coexist. With the continuous advancement of the market-oriented reformprocess of electricity trading, traditional power generation companies will face a more complex market environment and a morefierce competitive landscape.
According to the "Notice of the Energy Bureau of Guangdong Province on Issuing the Guidance Plan for the Base Quantity ofGenerating Units in 2021" (YNDLH [2020] No. 650), in 2021, the whole province’s total electricity consumption is expected to be
720.6 billion kWh, an increase of 5.0%; unified purchase of electricity demand of 684 billion kWh, an increase of 4.9%; unifiedadjustment of the highest load of 138 million kW, an increase of 8.8%; the planned installed capacity of newly commissioned andabove is about 5.36 million kilowatts (excluding the coal-fired power generating units with the national commissioning plans), thetotal outsourcing electricity for the year is estimated to be approximately 207.1 billion kWh, a year-on-year increase of 3.6%. In 2021,affected by many factors, the power generation situation of 9E units in Guangdong Province will be severe, and the production andoperation of the company's two 9E gas turbine power plants will face greater pressure. Firstly, the installed capacity of newlycommissioned units in the province is about 5.36 million kilowatts (excluding the coal-fired power generating units with the nationalcommissioning plans), and they are all high-efficiency and large-capacity gas-fired units, resulting in a substantial decrease in thebase electricity of 9E units and the medium- and long-term contract electricity, the company will face the unfavorable situation of adecline in market share and a reduction in power generation. The second is the continuous reduction of the benchmark electricityprice on the grid, with the price reduction of 0.035 yuan/kWh again in 2020, the benchmark electricity price has been reduced by atotal of 0.115 yuan/kWh from 2017 to 2020, plus the kilowatt-hour transaction price difference in the electricity market transactions,the profit margin of the company's power production and marketing is further reduced. Thirdly, international and domesticinflationary pressures will be passed on to the upstream raw material natural gas prices, thus, it is predicted that the natural gas pricein 2021 will exceed the price level in 2020, and the company will face the pressure of increasing fuel costs for power generation.
(ii) Summary of the Company’s annual business plan for 20212021 is the first year when the country enters the "14th Five-Year Plan" development stage. The company will closely follow thenational development strategy layout, continue to deepen the road of reform and development, conscientiously do a good job in thesafe production and operation of the main business of electric power, and go all out to strive for creating benefits, so as to realize thecompany's strategic transformation and healthy and sustainable development at an early date. The company will continue tounswervingly lead by the "1+5" strategic road map, and through the implementation of the annual work policy of the "125" project(i.e. taking strategic development as the core, and "vertical and horizontal alliance and integration, capital entanglement" as the twobasic principles, and "deeply linking, intensively cultivating project, closely following Shenzhen Gas, going deep into the market,and deeply studying real estate" as five important measures), unswervingly promote the strategic transformation, and do all the workwith a steadfast attitude step by step:
1. Adhere to the leadership of the party and earnestly give play to the leading role of party building. Adhere to the overall leadershipof the party, continuously improve the ability and level to implement the new development concept and build a new developmentpattern; strictly implement the responsibility system for party building work, adhere to the principle of party management and partybuilding, and always put party building work as the top priority to ensure that party building work reaches a new level.
2. Adhere to standardized operations, continuously improve corporate governance, and optimize internal management. According tothe "Securities Law" and other relevant laws and regulations and the revision content and requirements of securities regulatorynormative documents, timely revise and improve the company's "Articles of Association" and related rules of procedure to provide a
深圳南山热电股份有限公司2020年年度报告全文
more complete and rigorous system basis for the company's decision-making and governance. Do a good job in general election ofthe board of directors and the board of supervisors and the appointment of senior management personnel, ensure the standardized,continuous and efficient progress of corporate governance, production, operation, management, and development.
3. Persist in economic operation and reduce consumption and increase efficiency to the greatest extent. Adhering to the principle of"economic power generation", we will do a good job in power production and operation and power marketing, and at the same timeprepare for the trial operation of the long-term monthly settlement of power spot transactions. On the premise of ensuring stable fuelsupply, expand the multi-air source supply model, strive for greater market bargaining power, and minimize the procurement costs ofnatural gas.
4. With the aim of maximizing the company's interests, conduct land resource operation and management in accordance with lawsand regulations. Closely track and study Qianhai regional planning and relevant policies, maintain communication with relevantfunctional departments in Shenzhen and Shenzhen Qianhai Authority, and strive to adjust the planning and positioning of the landwhere Nanshan Power Factory is located in a direction that is beneficial to the company; at the same time, actively seize thedevelopment opportunities of the Shenzhen-Zhongshan Channel, fully revitalize the land resources of Shennandian ZhongshanCompany, and strive for the implementation of new projects and new production capacity. With the participation and cooperation oflegal advisors, the company will carry out various tasks in accordance with the standardized requirements of listed companies, andfulfill the necessary decision-making approval procedures and information disclosure obligations to maximize the protection of thecompany and all shareholders' interests and the legitimate rights and interests of employees.
5. Take the early realization of transformation and development as an important task, and actively and steadily explore projectchannels. According to the company’s annual work policy for the “125” project, with equity investment funds as the starting point,we will make efforts to broaden project channels suitable for the company’s transformation and development needs, establish aproject reserve pool, and go all out to promote the demonstration and landing work of new production capacity and new projects inthe spirit of time waiting for no man, and strive to achieve business transformation as soon as possible.
6. Take the continuous promotion of management innovation as the starting point, and further improve management efficiency andtalent quality. Continue to deepen the reform of human resources, further optimize the allocation of human resources, and prepare themanagement layout for the company's transformation and development in advance. Focus on training a group of young talents withhigh comprehensive quality, high educational background, professional domain knowledge and rich working experience, and build ayoung and professional team of compound management cadres to reserve management talents for future new projects and newindustries, and to escort the company's strategic transformation and long-term development.
The business plan and related situation analysis described in this report do not constitute the company’s performance commitment toinvestors. The company reminds investors to maintain sufficient risk awareness and understand the difference between business planand performance commitment and make prudent investment decision making.
(iii) Possible main risks and countermeasures
1. In terms of main business: In 2021, affected by multiple factors, the company's subordinate two power plants will face theunfavorable situation of a decline in market share and a reduction in power generating capacity, as well as the actual pressure thatfuel costs will increase after the power price cut in 2020, and the company's main business operation situation shall be more severe.The Company will continue to actively communicate with relevant provincial and municipal government departments to reflect thedifficulties of the enterprise and seek government supports; do its best to improve the profitability of the main business and theoverall operating efficiency by strengthening the management of the stock assets. At the same time, the Company will activelyexplore diversified business models and transformation and development opportunities to create better conditions for the Company'scontinued operation and healthy development.
深圳南山热电股份有限公司2020年年度报告全文
2. In terms of safety management: under the increasingly market-oriented new power production model, power plants will face moreflexible dispatch methods and stricter assessment policies, which put forward higher requirements for the operation and maintenanceof existing aging power generation equipment. The company will formulate scientific and reasonable maintenance and technicaltransformation plans, invest corresponding capital and technical strength, continue to improve the maintenance and managementlevel of equipment, and implement the main responsibility for safe production so as to ensure the safe and stable operation ofproduction facilities. At the same time, it will further strengthen the work of epidemic prevention and control, production safety,network information security, and emergency response to ensure that no security accidents occur in the company's system, andcontinue to play the supporting role of the main peak shaving power point.
3. Fuel procurement: In 2021, the company's natural gas purchase price will still mainly depend on the sales price of existingsuppliers. As the economic activities of the world's major economy entities, including China, tend to become stable, natural gasprices are expected to gradually rise, and the company's natural gas purchase prices in 2021 may be higher than in 2020. In addition,with the continuous advancement of the market-oriented reform of power trading in Guangdong Province, the company's plannedpower generation and actual power generation will be difficult to match, resulting in an increase in the difference between theplanned purchase of natural gas and the actual purchase. Since the natural gas purchase contract must be signed in advance, thecontract gas volume has been basically determined at the time of signing. If the company cannot take delivery of gas according to theagreement due to factors such as the marketization of electricity transactions in the later period, there may be related risks of failingto take delivery of the contract gas volume. The company will continue to optimize the upstream and downstream partnerships, givefull play to the advantages of large-scale procurement and the adjustment function of multiple gas sources, and make every effort toreduce the cost of natural gas procurement while ensuring the gas demand for electricity production.
4. Land of Nanshan Power Factory: In September 2020, the company learned about the Notice of Shenzhen Municipal Bureau ofPlanning and Natural Resources on Printing and Distributing the "Urban Renewal and Land Preparation Plan of Shenzhen City in2020" from the Shenzhen Government's website, which still included the land purchase and storage of the company's Nanshan PowerFactory and related content. Although the company actively used various opportunities to express its demands and suggestions, as ofthe end of the reporting period, it still had little effect. The Company will closely maintain communication with the relevantfunctional departments of Shenzhen and Shenzhen Qianhai Authority, actively follow up the progress of the implementation ofrelevant government plans, and work closely with legal counsel to study the related situation of the land of Nanshan Power Factory,study and formulate coping strategies and work plans, and do their best to safeguard the legitimate rights and interests of listedcompany and all shareholders.Investors are advised to pay attention to the above-mentioned major risks and other risks that the Company may face and makerational investment decisions prudently.X. Reception of research, communication and interview
1. In the report period, reception of research, communication and interview
√Applicable □ Not applicable
| Time | Location | Way | Type | Reception target | Main contents of the discussion and information provided | Basic situation index of investigation |
| Jan.-Dec. 2020 | Office from | Field visit | Individual | Individual (60 | Attend the general meeting and | Received |
深圳南山热电股份有限公司2020年年度报告全文
| the headquarters | person-time) | inquiry of register of members (shareholders) etc. | according to the laws and regulations | |||
| Jan.-Dec. 2020 | Interactive platform | Written inquiry | Individual | Individual (62 person-time) | Query the number of shareholders, as about the future development direction of the Company, progress of the investment items and lands with Nanshan Power Factory concerned | Rely in written timely |
| Jan.-Dec. 2020 | Telephoning | Telephoning | Individual | Individual (dozens of times) | Inquire and communicate the Company’s performance, market performance, the lands of Nanshan Power Factory and progress of the investment items etc. | Reply according to the laws and regulations |
| Reception (times) | 60 person times on-site, 62 person times reply in interactive platform and dozens of times through telephoning | |||||
| Number of hospitality | 0 | |||||
| Number of individual reception | 122 | |||||
| Disclosed, released or let out major undisclosed information | N | |||||
深圳南山热电股份有限公司2020年年度报告全文
Section V. Important EventsI. Profit distribution plan of common stock and transfer of public reserve into share capitalFormulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash Dividend policy duringthe Reporting Period
□Applicable√ Not applicable
Profit distribution plan (pre-plan) of common stock and transfer of public reserve into share capital plan (pre-plan) in latest threeyears (including the reporting period)
1. In 2018, audited by Ruihua Certified Public Accounts (Special General Partnership), the net profit attributable to shareholders oflisted Company for year of 2018 amounting as RMB 19,253,766.12. The Company has no plans of surplus accumulation fundaccrual, no profit distribution plan and transfer of public reserve into share capital either. (For details, please refer to theannouncement of the 4
th
session of 8
th
BOD (No.: 2019-008) published on China Securities Journal, Securities Times, Hong KongCommercial Daily and Juchao information website dated 28 March 2019)
2. In 2019, audited by LIXINZHONGLIAN, the net profit attributable to shareholders of listed Company for year of 2019 amountingas RMB 24,900,956.73. The Company has no plans of surplus accumulation fund accrual and based on the share capital of602,762,596 shares on 31
stDecember 2019, distribute RMB 0.2(tax included) cash dividends for every ten shares to wholeshareholders, there is no transfer of public reserve into share capital. (For details, please refer to the announcement of the 6
th
sessionof 8
th
BOD (No.: 2020-009) published on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchaoinformation website dated 20 March 2020)
3. In 2020, audited by LIXINZHONGLIAN, the net profit attributable to shareholders of listed Company for year of 2020 amountingas RMB 64,024,291.32. The Company has no plans of surplus accumulation fund accrual, no profit distribution plan and transfer ofpublic reserve into share capital either. (For details, please refer to the announcement of the 8
th
session of 8
th
BOD (No.: 2021-006)published on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao information website dated 26March 2021)
Cash dividend of common stock in latest three years (including the reporting period)
In RMB/CNY
| Year for bonus shares | Amount for cash bonus (tax included) | Net profit attributable to common stock shareholders of listed company in consolidation statement for bonus year | Ratio of the cash bonus in net profit attributable to common stock shareholders of listed company contained in consolidation | Proportion for cash bonus by other ways(i.e. share buy-backs) | Ratio of the cash bonus by other ways in net profit attributable to common stock shareholders of listed company contained in | Total cash bonus (including other ways) | Ratio of the total cash bonus (other ways included) in net profit attributable to common stock shareholders of listed company |
深圳南山热电股份有限公司2020年年度报告全文
| statement | consolidation statement | contained in consolidation statement | |||||
| 2020 | 0.00 | 64,024,291.32 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
| 2019 | 12,055,251.92 | 24,900,956.73 | 48.41% | 0.00 | 0.00% | 12,055,251.92 | 48.41% |
| 2018 | 0.00 | 19,253,766.12 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
| Reasons why it was profitable during the reporting period and the parent company’s profit available for distribution to ordinary shareholders was positive, but no distribution plans were proposed for cash dividend of ordinary shares | The purpose and use plan of the company's undistributed profits |
| In 2020, the company firmly implemented the annual work policy of the "125" project, paid close attention to safe production, stock operation and transformation and development, and carried out a series of operation and management innovation measures. We created a win-win situation through the coordination of state-owned assets and strategic cooperation, introduced gas sources with preferential prices for the company while cutting capacity, carefully made overall arrangement for the gas supply chain, and maximized the benefits by letting one unit guide a whole area. The company maximized economic benefits by strengthening the economic operation management of the main business of electric power, researching and formulating the marketing strategy for power market, striving to seize market opportunities, and striving for economic power share, thereby achieving an operating performance of 64,024,300 yuan of net profit attributable to shareholders of listed companies. In 2021, with the market-oriented reform of electric power continues to advance, gas turbine power plants will face more intense market competition. The company's two power plants will face multiple pressures such as declining market share, reduced power generation, and rising gas prices. The marginal contribution of power generation production, power generation rights transfer and spot market contract spread settlement will also be narrowed, and the company will face more severe challenges. In 2021, the company will continue to adhere to the "1+5" strategic road map, closely focus on the overall goal of "turning losses into gains and getting rid of difficulties, transforming and developing, and deepening reforms", while doing a good job in safe production and operation of the main | Given that the company's main business operation pressure is still huge, and it is in a critical period of simultaneous advancement of stock asset management and transformation and development, the company's undistributed profit of 685,077,973.07 yuan will be mainly used to supplement liquidity and meet operating needs to ensure the realization of operating objectives. |
深圳南山热电股份有限公司2020年年度报告全文
business of electric power, and actively seek transformation anddevelopment, search and develop project opportunities throughdifferent channels.Given that the company is still facing huge operating pressuresand it is difficult to meet the requirements for profit distributionconditions in the company's Articles of Association, the companydoes not plan to distribute profits in 2020.
II. Profit distribution plan and transfer of public reserve into share capital for the Period
□ Applicable √Not applicable
The Company has no plan of cash dividends distribution carried out for the Year, no bonus shares or transfer of public reserve intoshare capital either.III. Implementation of commitment
1. Commitments that the actual controller, shareholders, related parties, acquirer and the Company havefulfilled during the reporting period and have not yet fulfilled by the end of reporting period
□Applicable √Not applicable
There was no commitments that the actual controller, shareholders, related parties, acquirer and the Company have fulfilled duringthe reporting period and have not yet fulfilled by the end of the reporting period
2. Concerning assets or project of the Company, which has profit forecast, and reporting period still inforecasting period, explain reasons of reaching the original profit forecast
□ Applicable √ Not applicable
IV. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.V. Explanation from Board of Directors, Supervisory Committee and Independent Directors(if applicable) for “Modified Audit Report” issued by CPA
□ Applicable √ Not applicable
VI. Particulars about the changes in aspect of accounting policy, estimates and calculationmethod compared with the financial report of last year
√ Applicable □ Not applicable
The Accounting Standards for Business Enterprise No. 14 -Revenue was revised by Ministry of Finance in 2017. According to the
深圳南山热电股份有限公司2020年年度报告全文
revised standards, the cumulative impact of the first implementation of the Standard shall be adjusted to the amount of retainedearnings and other relevant items, in the financial statement at beginning of the first implementation period (1 Jan. 2020), informationduring the comparable period shall not be adjusted.
VII. Major accounting errors within reporting period that needs retrospective restatement
□ Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
VIII. Compare with last year’s financial report; explain changes in consolidation statement’sscope
√ Applicable □ Not applicable
During the reporting period, 70% equity of Dongguan Company, held by the Company are sold, Dongguan Company was no longerincluded in the consolidate scope at end of the Period.During the reporting period, the Company and China Science and Tech Innovation Venture Capital Management co-sponsor theestablishment of Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) with 99.9643% shares held by the Company,and included in consolidate scope of the Company in 2020.
IX. Appointment and non-reappointment (dismissal) of CPAAccounting firm appointed
| Name of domestic accounting firm | LIXINZHONGLIAN CPAS (SPECIAL GENERAL PARTNERSHIP) |
| Remuneration for domestic accounting firm (in 10 thousand Yuan) | 64 |
| Continuous year of auditing service for domestic accounting firm | 2 |
| Name of domestic CPA | Liu Xinfa, Cao Wei |
| Continuous year of auditing service for domestic CPA | 2 |
深圳南山热电股份有限公司2020年年度报告全文
XI. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period.
XII. Major litigation and arbitration of the Company
□ Applicable √ Not applicable
No major litigation and arbitration occurred in the periodXIII. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.XIV. Integrity of the Company and its controlling shareholders and actual controllers
√ Applicable □ Not applicable
During the reporting period, the company neither had any failure to implement the court’s effective judgments, nor had large amountof due and unpaid debts that were, etc., and had a good credit. During the reporting period, the company had no controllingshareholders or actual controllers.XV. Implementation of the Company’s stock incentive plan, employee stock ownership planor other employee incentives
□ Applicable √ Not applicable
The Company has no equity incentive plan, employee stock ownership plans or other employee incentives.XVI. Major related party transaction
1. Related party transaction with routine operation concerned
√Applicable □ Not applicable
| Related party | Relationship | Transaction Type | Content | Pricing principle | Transaction price | Transaction amount(in 10 thousand Yuan) | Proportion in similar transactions | Trading limit approved (in 10 thousand Yuan) | Whether over the approved limited or not (Y/N) | Means of payment | Available similar market price | Date of disclosure | Index of disclosure |
| Shenzhen | Related | Purchas | The | In | In | 1,366.0 | 100.00 | 8,867 | N | By | -- | 2019-06 | The |
深圳南山热电股份有限公司2020年年度报告全文
| Energy Gas Investment Holding Co., Ltd., Fuel Branch of Shenzhen Energy Corporation | legal person | e fuel | Company, New Power Company and Dongguan Company are entered into the Natural Gas Sales and Purchase Contract with Shenzhen Energy Gas Investment Holding Co., Ltd. respectively, and entered in the Purchase and Sale Management Service Agreement of LNG with Fuel Branch of | principle, the price shall not be higher than the market price of natural gas with reference to the market standard | principle, the price shall not be higher than the market price of natural gas with reference to the market standard | 1 | % | agreement | -25 | Notice of OEM for Equity Gas Purchase and Related Party Transaction (Notice No.: 2019-033) released on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website |
深圳南山热电股份有限公司2020年年度报告全文
| Shenzhen Energy Corporation | |||||||||||
| Total | -- | -- | 1,366.01 | -- | 8,867 | -- | -- | -- | -- | -- | |
| Detail of sales return with major amount involved | N/A | ||||||||||
| Report the actual implementation of the daily related party transactions which were projected about their total amount by types during the reporting period (if any) | Not applicable | ||||||||||
| Reasons for major differences between trading price and market reference price (if applicable) | Not applicable | ||||||||||
深圳南山热电股份有限公司2020年年度报告全文
XVII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
√Applicable □ Not applicable
Explanation on trustIn accordance with the “Assets (Generator Sets) Custody Operation Contract of Shenzhen New Power Industrial Co., Ltd.” signedwith the New Power Company, the Company entrusted with management for the generator assets owned by New Power Company(wholly-owned subsidiary of the Company). During the reporting period, the Company received an assets custody services of 12.5223million Yuan
Gains/losses to the Company from projects that reached over 10% in total profit of the Company in reporting period
□ Applicable √ Not applicable
No gains or losses to the Company from projects that reached over 10% in total profit of the Company in reporting period.
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in reporting period
(3) Leasing
□ Applicable √ Not applicable
No leasing for the Company in reporting period.
2. Major guarantees
□ Applicable √ Not applicable
3. Entrust others to cash asset management
(1) Trust financing
√Applicable □Not applicable
Trust financing in the period:
In 10 thousand Yuan
| Type | Capital sources | Amount occurred | Outstanding balance | Overdue amount |
| Bank financial products | Own funds | 48,965.56 | 57,565.56 | 0.00 |
| Total | 48,965.56 | 57,565.56 | 0.00 |
深圳南山热电股份有限公司2020年年度报告全文
□Applicable √Not applicable
Entrust financial expected to be unable to recover the principal or impairment might be occurred
□ Applicable √ Not applicable
(2) Entrusted loans
□ Applicable √ Not applicable
The company had no entrusted loans in the reporting period.
4. Material contract with daily operation concerned
□ Applicable √ Not applicable
5. Other material contracts
√Applicable □ Not applicable
| The name of the contracting company | The name of the contracted company | Contract object | The date of signature of the contract | The book value of the assets involved in the contract(RMB’0000)(if any) | The assessed value of the assets involved in the contract(RMB’0000)(if any) | Name of the evaluation organization(if any) | The base date evaluation (if any) | Pricing principles | Bargain price(RMB’0000) | Whether connected transaction (Y/N) | Incidence relation | The performance by the end of the term | The date of disclosure | The index of disclosure |
| The Company, New Power Company | Shenzhen Gas Group Co., Ltd. | Pipeline natural gas | 2018-05-14 | N/A | The contract is a framework agreement, price of the NG will decide through consultation | N | Not applicable | In progress | Failure to meet specific disclosure requirements |
深圳南山热电股份有限公司2020年年度报告全文
| by supplemental agreement between the two parties | ||||||||||||||
| The Company, Syndisome Company | Shenzhen Gas Group Co., Ltd. | 70% equity of Dongguan Company (40% equity held directly by the Company, and 30% equity held through wholly-owned subsidiary Syndisome Company indirectly) | 2020-03-11 | 5,841.18 | 8,329.92 | Watson (Beijing) International Assets Appraisal Co., Ltd. | 2019-06-30 | Pricing principle in the agreement is that the negotiated transfer price of underlying assets (70% equity of Dongguan Company )is higher than the appraisal value of the underlying assets issued by Watson (Beijing) International | N | Not applicable | Completed on July 2, 2020 | 7 March 2020, 24 March 2020, 11 April 2020, and 4 July 2020 | Notice including: 70% Equity of Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd Transfer, Resolution of the First Extraordinary Shareholders General Meeting of 2020, Progress of Transfer of 70% Equity of Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd and Completion of the 70% Equity of Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd Transferred; Notice No.: (2020-006, 2020-019, 2020-023 and 2020-032); Released on : |
深圳南山热电股份有限公司2020年年度报告全文
| Assets Appraisal Co., Ltd. | China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website. |
深圳南山热电股份有限公司2020年年度报告全文
suspected cases or cases of asymptomatic infection in the company system. While doing a good job in the prevention and control ofthe epidemic, the company actively responded to the call for resumption of work and production, and organized production andoperation in a safe and orderly manner.
5. Human Resources: The Company attached great importance to talent training and employee care, continue to promote the reformof human resources and further optimize the human resource allocation, improved employees’ professional quality and jobcompetence, and made necessary talent preparations for the Company's transformation and development, at the same time, createdfavorable conditions for the personal career growth of employees; through a series of people’s livelihood care measures, createdbetter working environment and conditions for employees in accordance with local conditions, and increased employee happinessand corporate cohesion
6. In terms of helping and supporting: the Company adopt 10 Mu lands from the poverty alleviation area-Hujing village, LongchuanCounty, Heyuan, and 2400 kg rice with a total value of 39,600 Yuan; and purchase the agricultural products such as Chickpea, NavelOrange and Apple /dry fruit in poverty alleviation areas from Lianping, Guangdong, Gannan, Jiangxi and Xinjiang respectively witha total value of 112,040 Yuan. In difficult circumstances, the Company has contributed to changing the face of poor villages andhelping the poor to enter a well-off society together.
2. Fulfill the precise social responsibility for poverty alleviation
(1) Plan of precise poverty alleviation
(2) Summary of the annual precise poverty alleviation
The Company responds to the call of consumption poverty alleviation actively, adopt 10 Mu lands from the poverty alleviationarea-Hujing village, Longchuan County, Heyuan, and 2400 kg rice with a total value of 39,600 Yuan; and purchase the agriculturalproducts such as Chickpea, Navel Orange and Apple /dry fruit in poverty alleviation areas from Lianping, Guangdong, Gannan,Jiangxi and Xinjiang respectively with a total value of 112,040 Yuan. In the case that the Company has not yet extricated itself fromthe business dilemma, total amount of poverty alleviation through consumption in 2020 is 151,640 Yuan.
(3) Achievement in precise poverty alleviation
| Quota | Unit of measurement | Numbers/Progress |
| I. Overall situation | —— | —— |
| Including: 1. Funds | 10 thousand Yuan | 15.16 |
| II. Itemized input | —— | —— |
| 1.Poverty alleviation for industrial development | —— | —— |
| 2.Transfer employment to get rid of poverty | —— | —— |
| 3.Moving out of poverty | —— | —— |
深圳南山热电股份有限公司2020年年度报告全文
| 4.Poverty alleviation through education | —— | —— |
| 5.Poverty alleviation through health | —— | —— |
| 6.Poverty alleviation through ecological protection | —— | —— |
| 7.overall guarantee | —— | —— |
| 8.Social poverty alleviation | —— | —— |
| 8.2 Investment amount of the poverty alleviation in designated areas | 10 thousand Yuan | 15.16 |
| 9.Other | —— | —— |
| III. Awards (content,standards) | —— | —— |
| Enterprise or subsidiary | Main pollutant and features | Way of discharge | Number of discharge outlet | Distribution of the discharge outlet | Emission concentration | Pollutant discharge standard implemented | Total discharge | Total approved emissions | Excessive emission |
| Shenzhen Nanshan Power Co., Ltd. | Oxynitride | Concentrate emission from boiler uptake | 2 | In plant area of Nanshan Power Factory | <15 mg/m3 | Implementation of “Shenzhen Blue” emission standard<15 mg/m3 | 82.46 ton | 457.5ton | 0 |
| Shenzhen New Power Industrial Co., Ltd. | Oxynitride | Concentrate emission from boiler uptake | 1 | In plant area of Nanshan Power Factory | <15 mg/m3 | Implementation of “Shenzhen Blue” emission standard<15 mg/m3 | 10.89ton | 228.75ton | 0 |
| Shen Nan | Oxynitride | Concentrate | 2 | In plant area | <50 mg/m3 | GB13223 | 8.56ton | 324.50ton | 0 |
深圳南山热电股份有限公司2020年年度报告全文
| Dian (Zhongshan) Electric Power Co., Ltd. | emission from boiler uptake | of Zhongshan Nanlang Power Plant |
深圳南山热电股份有限公司2020年年度报告全文
Electric Power Co., Ltd and Completion of the 70% Equity of Shen Nan Dian (Dongguan) Weimei Electric Power Co., LtdTransferred (Notice No.: 2020-006, 2020-019, 2020-023 and 2020-032))
2. Matters concerning the company’s investment in Yuanzhi Ruixin New Generation Information Technology Equity InvestmentFund. On March 5, 2020 and March 23, 2020, the Eleventh Extraordinary Meeting of the Company’s Eighth Board of Directors andthe 2020 First Extraordinary General Meeting of Shareholders respectively reviewed and approved the Proposal on Investing inYuanzhi RuixinNew Generation Information Technology Equity Investment Fund and Related Transactions, agreed that the companywould invest 200 million yuan with its own funds in Yuanzhi RuixinNew Generation Information Technology Equity InvestmentFund.In view of the fact that Shenzhen Capital Holdings Co., Ltd, one of the limited partners of the fund, and Shenzhen YuanzhiRuixin Equity Investment Management Co.,Ltd., the general partner of the fund, are all related legal persons of the company, thecompany fulfills relevant approval procedures and information disclosure obligations in accordance with relevant regulations ofrelated transactions. As of the end of the reporting period, the related work is in progress. The company and related parties have notsigned the Partnership Agreement for Yuanzhi Ruixin New Generation Information Technology Equity Investment Fund. Thecompany will follow the progress of the matter and fulfill information disclosure obligations in accordance with the law andregulations. (Found more in the Notice released on China Securities Journal, Securities Times, Hong Kong Commercial Daily andJuchao Website, including Notice on Investing in Yuanzhi RuixinNew Generation Information Technology Equity Investment Fundand Related Transactions and Resolution of the First Extraordinary Shareholders General Meeting of 2020 (Notice No.: 2020-007and 2020-019))
3. T102-0011, T102-0155 Land related matters
(1) On April 2, 2020, the company received the Notice of Shenzhen Qianhai Authority Regarding Resumption of Land Use Rights ofT102-0011 Parcel from Shenzhen Qianhai Authority. The company fulfilled its information disclosure obligations in a timely manner,and immediately worked with special legal advisors to study the Shenzhen Qianhai Authority’s plan to take back the land use rightsof the T102-0011 parcel and its countermeasures. At the same time, it organized Shen Nan Dian Environment Protection Company,the company’s wholly-owned subsidiary, and Nanshan Power Factory, a subsidiary of the company, carefully assessed the impact ofthis matter on their normal production and operation. On April 24, the company delivered the "Reply to the Notice of ShenzhenQianhai Authority Regarding the Resumption of Land Use Rights of T102-0011 Parcel" (SNDHZ [2020 ] No. 4), which analyzedand calculated the impact of Shenzhen Qianhai Authority's plan to recover the land use rights of 2531 square meters withinT102-0011 parcel on Shen Nan Dian Environment Protection Company and Nanshan Power Factory, andmade acompensationrequest for the resumption of land use rights.The Company has arranged special personnel to follow up the progress of the matter,and will take corresponding countermeasures according to the subsequent progress and fulfill the necessary information disclosureobligations in line with the laws and regulations. (For details, please refer to the company’s Announcement About Receipt of theNotice ofShenzhen Qianhai Authority Regarding Resumption of Land Use Rights of T102-0011 Parcel, theAnnouncement AboutReply to the Notice of Shenzhen Qianhai Authority Regarding the Resumption of Land Use Rights of T102-0011 Parcel disclosed onChina Securities Journal, Securities Times, Hong Kong Commercial Daily and cninfo, Announcement No.: 2020-020, 2020-029).
(2)On April 10, 2020, the company received the Letter of Notice Regarding the Selection of the Surveying, Mapping and EvaluationAgency for the Land Preparation Project (Legal Buildings and Structures) of the Rapid Reconstruction Project of YueliangwanAvenue from Shenzhen Qianhai Development Investment Holding Co., Ltd. The company fulfilled its obligation of informationdisclosure in a timely manner (for details, please refer to the company’s Announcement About Receipt of Letter of Notice Regardingthe Selection of the Surveying, Mapping and Evaluation Agency for the Land Preparation Project (Legal Buildings and Structures) ofthe Rapid Reconstruction Project of Yueliangwan Avenue from Shenzhen Qianhai Development Investment Holding Co.,Ltd.disclosed on China Securities Journal, Securities Times, Hong Kong Commercial Daily and cninfo, Announcement No.:
2020-024).
深圳南山热电股份有限公司2020年年度报告全文
(3)On June 19, 2020, Shenzhen Qianhai Authority issued the Announcement of Shenzhen Qianhai Authority on the PublicPresentation of the Development Unit Planning Revision (Draft) of Qianhai Area on its official website (hereinafter referred to as"the Announcement"), and publicly presented the development unit planning revision (draft) for the three areas of Qianhai (Guiwan,Qianwan and Mawan). The company fulfilled its obligation of information disclosure in a timely manner, and submitted the Opinionsof Shenzhen Nanshan Power Co., Ltd. on the Development Unit Planning Revision (Draft) of Qianhai Area to the Shenzhen QianhaiAuthority, put forward relevant issues concerning planning content of the company's Nanshan Power Factory (Development Unit 13)in the Announcement, and raised an objection to the planning for Development Unit 13, hoping that Shenzhen Qianhai Authority willfully consider the contributions the company made to Shenzhen and Qianhai area for more than 30 years, based on the principle of“respect for history, cooperation and win-win”, taking the successful land preparation model and mature experience of Qianhai forexample, and properly solve the related issues of the company’s Nanshan Power Factory (Development Unit 13), so that thelegitimate rights and interests of listed companies and their shareholders shall be effectively protected. The Company has arrangedspecial personnel to follow up the progress of the matter, and will take corresponding countermeasures according to the subsequentprogress and fulfill the necessary information disclosure obligations in line with the laws and regulations.(Found more in the Noticereleased on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website, including the Notice onShenzhen Qianhai Authority issued the Announcement of Shenzhen Qianhai Authority on the Public Presentation of the DevelopmentUnit Planning Revision (Draft) and Development Unit Planning Revision (Draft) of Qianhai Area to the Shenzhen Qianhai Authority(Notice No.: 2020-031 and 2020-034))
(4) On September 24, 2020, the company learned about the Notice of Shenzhen Municipal Bureau of Planning and Natural Resourceson Printing and Distributing the "Urban Renewal and Land Preparation Plan of Shenzhen City in 2020" (hereinafter referred to as the"Land Preparation Plan") from the Shenzhen Government's website. According to the relevant contents of the "Land PreparationPlan" and its attached tables, the 2020 land preparation project of Qianhai Cooperation Zone still included the land purchase andstorage of the company's Nanshan Power Factory and other related contents. The company fulfilled its information disclosureobligations in a timely manner, and followed up with legal counsel to understand the relevant situation. (Found more in the Noticereleased on China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website, including the “Notifyingthe Notice of Shenzhen Municipal Bureau of Planning and Natural Resources on Printing and Distributing the "Urban Renewal andLand Preparation Plan of Shenzhen City in 2020"(Notice No.: 2020-042))
The company will continue to follow up the progress of matters related to the land where Nanshan Power Factory is located, maintainclose communication with relevant functional departments in Shenzhen and Shenzhen Qianhai Authority, to respond to any issuesthat may have advance impact on the Company and its subordinate enterprises in a timely manner and put forward opinions andappeals according to the laws, and do its best to protect the legitimate rights and interests of the listed company and all shareholders.
4. Adjustment of the on-grid tariff for gas generation. On 31 July 2020, Development and Reform Commission of GuangdongProvince issued the “Notice on Adjustment of the Electricity Price of Gas Generation in the Province” (Yue Fa Gai Price [2020]No.284), hereinafter referred to as the Notice), and decided to further adjust the on-grid price of gas generation in GuangdongProvince. According to the spirit of the Notice, since 1 August 2020, the current generating sets of the Company, adjusted the on-gridprice from 0.665 Yuan/KWH to 0.63 Yuan/KWH (within the annual utilization hours of 4000 (inclusive)), and 0.463 Yuan/KWH(with the annual utilization hours of above 4000). The on-grid price for contract price of 2020 will not adjusted in the Year temporary(Found more in the Notice on Adjustment of the On-Grid Tariff for Gas Generation, Notice No.: 2020-037) released on ChinaSecurities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website )
深圳南山热电股份有限公司2020年年度报告全文
5. Investment matters related to the Zhongshan Prefabricated Building Industrial Park project. On September 28, 2020, the 13thinterim meeting of the eighth session of the company’s board of directors reviewed and approved the Proposal on Investment in theZhongshan Prefabricated Building Industrial Park Project", and it was agreed that the company would invest 29.29 million yuan inthe Zhongshan Prefabricated Building Industrial Park project with its own funds. (Found more in the Notice released on ChinaSecurities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website, including the Notice on Investment in theZhongshan Prefabricated Building Industrial Park Project (Notice No.: 2020-044))
6. Matters related to investment in Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership). On October 22, 2020, the14th extraordinary meeting of the 8th board of directors of the company reviewed and approved the "Proposal on Investing in ZhuhaiHengqin Zhuozhi Investment Partnership (Limited Partnership)", and agreed that the company would invest 279.9 million yuan withits own funds in Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership). In November, the company received anotice from the fund manager Guangdong China Science and Tech Innovation Venture Capital Management Co., Ltd. that ZhuhaiHengqin Zhuozhi Investment Partnership (Limited Partnership) had completed the filing procedures of the fund in the AssetManagement Association of China in compliance with the requirements of the Securities Investment Fund Law and the InterimMeasures for the Supervision and Management of Private Equity Investment Fund and other laws and regulations. After completingthe filing procedures, this company has normally carried out the preliminary investment work of the target project in accordance withthe relevant regulations and its "Articles of Association". (Found more in the Notice released on China Securities Journal, SecuritiesTimes, Hong Kong Commercial Daily and Juchao Website, including the Notice on Investing in Zhuhai Hengqin Zhuozhi InvestmentPartnership (Limited Partnership); Notice on Completed the filing procedures of the funds (Notice No.: 2020-051; Notice No.:
2020-056))
Except for the above matters, the Company has sorted out the refundable items of the “Benefit Fund for Technical RenovationProject” and communicated with relevant personnel, but no substantial progress was made during the reporting period; theGuangdong Xinjiang Aid Project that the Company participated in 2013 had no further progress or change during the Period.
XX. Significant event of subsidiary of the Company
□ Applicable √Not applicable
深圳南山热电股份有限公司2020年年度报告全文
Section VI. Changes in Shares and Particulars about ShareholdersI. Changes in Share Capital
1. Changes in Share Capital
In Share
| Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
| Amount | Proportion | New shares issued | Bonus shares | Capitalization of public reserve | Others | Subtotal | Amount | Proportion | |
| I. Restricted shares | 14,139 | 0.0023% | 14,139 | 0.0023% | |||||
| 1. State-owned shares | |||||||||
| 2. State-owned legal person’s shares | |||||||||
| 3. Other domestic shares | 14,139 | 0.0023% | 14,139 | 0.0023% | |||||
| Including: Domestic legal person’s shares | |||||||||
| Domestic natural person’s shares | 14,139 | 0.0023% | 14,139 | 0.0023% | |||||
| 4. Foreign shares | |||||||||
| Including: Foreign legal person’s shares | |||||||||
| Foreign natural person’s shares | |||||||||
| II. Unrestricted shares | 602,748,457 | 99.9977% | 602,748,457 | 99.9977% | |||||
| 1. RMB Ordinary shares | 338,894,011 | 56.2235% | 338,894,011 | 56.2235% | |||||
| 2. Domestically listed foreign shares | 263,854,446 | 43.7742% | 263,854,446 | 43.7742% | |||||
| 3. Overseas listed foreign shares | |||||||||
| 4. Others | |||||||||
| III. Total shares | 602,762,596 | 100.00% | 602,762,596 | 100.00% | |||||
深圳南山热电股份有限公司2020年年度报告全文
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Implementation progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
□ Applicable √ Not applicable
II. Securities issuance and listing
1. Security offering (without preferred stock) in Reporting Period
□ Applicable √ Not applicable
2. Changes of total shares and shareholders structure as well as explanation on changes of assets andliability structure
□ Applicable √ Not applicable
3. Existing internal staff shares
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
In Share
| Total common stock | 34,457 | Total common stock | 33,402 | Total preference shareholders with | 0 | Total preference shareholders | 0 |
深圳南山热电股份有限公司2020年年度报告全文
| shareholders at end of the reporting period | shareholders at end of last month before annual report disclosed | voting rights recovered at end of reporting period (if applicable) (see note 8) | with voting rights recovered at end of last month before annual report disclosed (if applicable) (see note 8) | |||||||||||
| Particulars about shares held above 5% by shareholders or top ten shareholders | ||||||||||||||
| Full name of Shareholders | Nature of shareholder | Proportion of shares held | Total shareholders at the end of report period | Changes in report period | Amount of restricted shares held | Amount of un-restricted shares held | Number of share pledged/frozen | |||||||
| State of share | Amount | |||||||||||||
| HONG KONG NAM HOI (INTERNATIONAL) LTD. | Overseas legal person | 15.28% | 92,123,248 | 92,123,248 | ||||||||||
| Shenzhen Guangju Industrial Co., Ltd. | State-owned legal person | 12.22% | 73,666,824 | 73,666,824 | ||||||||||
| Shenzhen Energy Group Co., Ltd. | State-owned legal person | 10.80% | 65,106,130 | 65,106,130 | ||||||||||
| BOCI SECURITIES LIMITED | Overseas legal person | 2.48% | 14,975,502 | 14,975,502 | ||||||||||
| Liu Fang | Domestic nature person | 1.21% | 7,285,988 | 7,285,988 | ||||||||||
| Zeng Ying | Domestic nature person | 1.19% | 7,159,600 | 7,159,600 | ||||||||||
| China Merchants Securities H.K. Co., Ltd. | State-owned legal person | 1.17% | 7,079,728 | 7,079,728 | ||||||||||
| LI SHERYN ZHAN MING | Overseas nature person | 0.97% | 5,825,490 | 5,825,490 | ||||||||||
| Meiyi Investment Property Co., Ltd. | Domestic non state legal person | 0.87% | 5,217,800 | 5,217,800 | ||||||||||
| Haitong International Securities Company | Overseas legal person | 0.65% | 3,909,357 | 3,909,357 | ||||||||||
深圳南山热电股份有限公司2020年年度报告全文
| Limited-Account Client | ||||
| Strategy investors or general corporation comes top 10 shareholders due to rights issue (if applicable) (see note 3) | N/A | |||
| Explanation on associated relationship among the aforesaid shareholders | 1. 100% equity of HONG KONG NAM HOI (INTERNATIONAL) LIMITED 100% held by Shenzhen Energy Group Co., Ltd.; 2. The Company is unknown whether there exists associated relationship or belongs to the consistent actor among the other shareholders. | |||
| Particular about top ten shareholders with un-restrict shares held | ||||
| Shareholders’ name | Amount of un-restrict shares held at Period-end | Type of shares | ||
| Type | Amount | |||
| HONG KONG NAM HOI (INTERNATIONAL) LTD. | 92,123,248 | Domestically listed foreign shares | 92,123,248 | |
| Shenzhen Guangju Industrial Co., Ltd. | 73,666,824 | RMB common shares | 73,666,824 | |
| Shenzhen Energy Group Co., Ltd. | 65,106,130 | RMB common shares | 65,106,130 | |
| BOCI SECURITIES LIMITED | 14,975,502 | Domestically listed foreign shares | 14,975,502 | |
| Liu Fang | 7,285,988 | RMB common shares | 4,225,188 | |
| Domestically listed foreign shares | 3,060,800 | |||
| Zeng Ying | 7,159,600 | Domestically listed foreign shares | 7,159,600 | |
| China Merchants Securities H.K. Co., Ltd. | 7,079,728 | Domestically listed foreign shares | 7,079,728 | |
| LI SHERYN ZHAN MING | 5,825,490 | Domestically listed foreign shares | 5,825,490 | |
| Meiyi Investment Property Co., Ltd. | 5,217,800 | RMB common shares | 5,217,800 | |
深圳南山热电股份有限公司2020年年度报告全文
| Haitong International Securities Company Limited-Account Client | 3,909,357 | Domestically listed foreign shares | 3,909,357 |
| Expiation on associated relationship or consistent actors within the top 10 un-restrict shareholders and between top 10 un-restrict shareholders and top 10 shareholders | 1. 100% equity of HONG KONG NAM HOI (INTERNATIONAL) LIMITED 100% held by Shenzhen Energy Group Co., Ltd.; 2. The Company is unknown whether there exists associated relationship or belongs to the consistent actor among the other shareholders. | ||
| Explanation on top 10 shareholders involving margin business (if applicable) (see note 4) | Among the top ten shareholders, Ms. Liu Fang holds 4,180,688 shares through credit transaction guarantee securities account. | ||
深圳南山热电股份有限公司2020年年度报告全文
resolutions of the company’s board of directors with their actual voting rights of the shares of the list company or throughrecommendations or nomination of directors, nor persons (including natural persons, legal persons or other organizations) who cancontrol or actually control the company’s behavior through investment relations, agreements or other arrangements; that is, there isno circumstance concerning the identification standards of the actual controller or control rights of listed companies as defined inItem (iii) of Article 216 of the "Company Law of the People's Republic of China (Amended in October 2018)", or Article 84 of theAdministrative Rules on the Acquisition of Listed Companies (Amended in March 2020), and Item (vi) and Item (vii) of Article 17.1of the "Stock Listing Rules of Shenzhen Stock Exchange (Revised in 2020)".
Whether has shareholder owns over 10% shares at ultimate control level
√Yes □No
Legal PersonChange of actual controller in the period
□Applicable √Not applicable
Block diagram of company property rights and control relationships
Actual controller controlling the Company by entrust or other assets management
□ Applicable √ Not applicable
深圳南山热电股份有限公司2020年年度报告全文
4. Particulars about other legal person shareholders with over 10% shares held
√Applicable □ Not applicable
| Name of legal person shareholder | Legal representative/person in charge | Date of establishment | Registered capital | Main business or management activities |
| HONG KONG NAM HOI (INTERNATIONAL) LTD. | Wang Daohai | May 14, 1985 | HK$ 15.33 million | Holding shares through investment |
| Shenzhen Guangju Industrial Co., Ltd. | Du Wenjun | May 31, 1989 | RMB 111.11 million | Set up industry, power investment (specific projects will be declared separately) |
| Shenzhen Energy Group Co., Ltd. | Wang Daohai | July 15, 1985 | RMB 230.971224 million | Development, production, purchase and sale of various conventional energy (including electricity, heat, coal, oil and gas) and new energy |
深圳南山热电股份有限公司2020年年度报告全文
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period
深圳南山热电股份有限公司2020年年度报告全文
Section VIII Convertible Bonds
□ Applicable √ Not applicable
The Company had no convertible bonds in the Period
深圳南山热电股份有限公司2020年年度报告全文
Section IX. Particulars about Directors, Supervisors, Senior Officers
and Employees
I. Changes of shares held by directors, supervisors and senior officers
| Name | Title | Working status | Sex | Age | Start dated of office term | End date of office term | Shares held at period-begin (Share) | Amount of shares increased in this period (Share) | Amount of shares decreased in this period (Share) | Other changes (share) | Shares held at period-end (Share) |
| Li Xinwei | Chairman | Currently in office | M | 55 | August 28, 2017 | See note for details | 0 | 0 | 0 | 0 | 0 |
| Li Hongsheng | Vice chairman | Currently in office | M | 57 | January 13, 2011 | See note for details | 0 | 0 | 0 | 0 | 0 |
| Huang Qing | Director | Currently in office | M | 49 | June 3, 2019 | See note for details | 0 | 0 | 0 | 0 | 0 |
| Chen Yuhui | Director, GM | Currently in office | M | 55 | August 28, 2017, August 11, 2017 | See note for details | 0 | 0 | 0 | 0 | 0 |
| Wu Guowen | Director, Standing Deputy GM | Currently in office | M | 55 | April 25, 2016, April 1, 2016 | See note for details | 0 | 0 | 0 | 0 | 0 |
| Li Wenying | Director | Currently in office | M | 41 | June 3, 2019 | See note for details | 0 | 0 | 0 | 0 | 0 |
| Mo Jianmin | Independent director | Currently in office | M | 54 | November 17, 2017 | See note for details | 0 | 0 | 0 | 0 | 0 |
| Chen Zetong | Independent director | Currently in office | M | 50 | November 17, 2017 | See note for details | 0 | 0 | 0 | 0 | 0 |
| Du Wei | Independent director | Currently in office | M | 65 | November 11, 2019 | See note for details | 0 | 0 | 0 | 0 | 0 |
| Ye Qiliang | Chairman of | Currently in office | M | 57 | November 17, 2017 | See note for details | 0 | 0 | 0 | 0 | 0 |
深圳南山热电股份有限公司2020年年度报告全文
| supervisory board | |||||||||||
| Li Zhiwei | Supervisor | Currently in office | M | 40 | June 3, 2019 | See note for details | 0 | 0 | 0 | 0 | 0 |
| Liao Junkai | Supervisor | Currently in office | M | 32 | June 3, 2019 | See note for details | 0 | 0 | 0 | 0 | 0 |
| Liang Jianqiang | Employee supervisor | Currently in office | M | 52 | November 12, 2014 | See note for details | 0 | 0 | 0 | 0 | 0 |
| Peng Bo | Employee supervisor | Currently in office | M | 47 | November 17, 2017 | See note for details | 1,527 | 0 | 0 | 0 | 1,527 |
| Zhang Jie | Deputy GM, secretary of the Board | Currently in office | F | 52 | December 30, 2006, December 23, 2015 | See note for details | 17,325 | 0 | 0 | 0 | 17,325 |
| Dai Xiji | CFO | Currently in office | M | 51 | November 17, 2017 | See note for details | 0 | 0 | 0 | 0 | 0 |
| Total | -- | -- | -- | -- | -- | -- | 18,852 | 0 | 0 | 0 | 18,852 |
深圳南山热电股份有限公司2020年年度报告全文
Energy Finance Co., Ltd., he also holds the post of chairman of Sichuan Shenzhen Energy Power Investment Holding Co., Ltd. from2015 to October 2018; and he has held the post of chairman of the Company since August 2017, now served as chairman ofShenzhen Energy Group Co., Ltd., Shenzhen Shen Nan Dian Environment Protection Co., Ltd., Shenzhen Shennandian TurbineEngineering Technology Co., Ltd. and director of Shen Nan Energy (Singapore) Co., Ltd. Since May 2019, he has been the secretaryof the party committee of the company.
Mr. Li Hongsheng, born in 1963, was Communist party member, a master. From November 2004, he served as director of ShenzhenGuangju Investment Holding (Group) Co., Ltd, director financial controller of Shenzhen Guangju Energy Co., Ltd, chairman ofShenzhen Yangrun Investment Co., Ltd.; From December 2007 to now he serves as Managing director of Shenzhen Guangju EnergyCo., Ltd. and director of Guangju Energy (HK) Co., Ltd; and he serves as director and vice chairman of the Company since January2011
Mr. Huang Qing, born in 1971, intermediate economist, master of economics, graduated from Wuhan University with a major innational economic planning and management. He successively served as a staff member, deputy chief staff member, and a chief staffmember of the General Office of Shenzhen Municipal Government, deputy chief of the General Office of Shenzhen MunicipalGovernment, chief of the General Office of Shenzhen Municipal Government, deputy departmental-level secretary of the GeneralOffice of Shanxi Provincial Government, deputy director of Shanxi Provincial Government's Guangzhou Office and a member of theParty Group. He currently serves as deputy general manager of Shenzhen Capital Operation Group Co., Ltd. (Former ShenzhenYuanzhi Investment Co., Ltd.), concurrently serves as director and president of Guangzhou NasSoft Information Technology Co.,Ltd., director of Shenzhen Energy Corporation, director and vice president of Shenzhen Water Investment Co., Ltd., director ofShenzhen HTI Group Co., Ltd., director of Xiong'an Lvyan Zhiku Co., Ltd., director of Shenzhen Institute of Building Research Co.,Ltd., supervisor of Shenzhen Yixin Investment Co., Ltd., and the director of Shum Yip Investment Development Co., Ltd .; and heserves as the director of the Company since June 2019.
Mr. Chen Yuhui was born in 1965, a senior engineer, graduated from Shanghai Jiao Tong University and obtained a bachelor'sdegree in marine power and a master's degree in vibration, shock & noise (postgraduate degree). In 1989, he worked in themaintenance department of Shenyang Liming Gas Turbine Co., Ltd.; from December 1989 to June 2006, he worked in ShenzhenEnergy Group Yueliangwan Power Plant, and successively held the posts of chief-operator of operation department, specialistengineer of general office, deputy director of maintenance department, factory deputy manager, factory manager, etc.; from June2006 to July 2014, he worked in Shenzhen Energy East Power Plant and held the posts of deputy general manager and operationdirector; from July 2014 to August 2017, he served as the chairman, general manager, and party branch secretary of Zhuhai ShenzhenEnergy Hongwan Power Co., Ltd.; and he has held the posts of director and general manager of the Company and the chairman ofShennandian (Zhongshan) Power Co., Ltd. and the director of Shen Nan Energy (Singapore) Co., Ltd. since August 2017. From May2019 to present, he has been the deputy secretary of the party committee of the company.
Mr. Wu Guowen, born in 1965, an undergraduate, He worked in Shenzhen Guangju Energy Co., Ltd. since 1994; and worked inShenzhen Yisheng Liquid Storage Co., Ltd. from 2008 to November 2010, and served as deputy GM; he works in Shenzhen GuangjuReal Estate Co., Ltd. From December 2010 to March 2016, and successively appointed as standing deputy GM, legal representative,executive director and GM; serves as staff supervisor in Shenzhen Guangju Energy Co., Ltd. since August 2013. he serves as director,standing deputy GM of the Company since April 2016, he serves as chairman of Shenzhen Server Energy Co., Ltd. since March2018.
Mr. Li Wenying, born in 1979, master of business administration, graduated from Guanghua School of Management, PekingUniversity with a major in business administration. He successively served as the planning director of National Express Transport
深圳南山热电股份有限公司2020年年度报告全文
Group Co., Ltd., department manager of Shenzhen Zhongnan Industrial Co., Ltd., department manager of Shenzhen Tongchan GroupCo., Ltd., investment manager, senior manager and deputy director of Shenzhen Capital Operation Group Co., Ltd. (FormerShenzhen Yuanzhi Investment Co., Ltd.), and the deputy director (presiding over the work) of Investment Development Departmentof Shenzhen Capital Co., Ltd. He currently serves as the director of the Investment Development Department of Shenzhen CapitalGroup Co., Ltd.(former Shenzhen Capital Co., Ltd.), concurrently serves as director of Shenzhen Energy Group Co., Ltd. anddirector of Shenzhen SD Microfinance Co., Ltd .; since June 2019, he has been a director of the Company.
Mr. Mo Jianmin was born in 1966, a China Certified Public Accountant, graduated from School of Law of Nanchang University.From March 1985 to October 1996, he worked at Tonggu County Taxation Bureau of Jiangxi Province and Local Taxation Bureau ofTonggu County; from November 1996 to October 1999, he worked at Shenzhen Tongren Certified Public Accountants; from October1999 to March 2001, he worked at Zhongtianqin Certified Public Accountants; from April 2001 to December 2003, worked atShenzhen Languang Enterprise Group; from January 2004 to December 2010, he worked at Shenzhen Jinniu Accounting Firm; fromJanuary 2011 to October 2012, he was appointed as a partner of Jonten Certified Public Accountants Shenzhen Branch; fromNovember 2012 to May 2014, he served as a partner of Beijing Yongtuo Certified Public Accountants; he has served as a partner ofDa Hua Certified Public Accountants since June 2014. He also serves as independent director of Shenzhen Kunpeng Holdings Co.,Ltd., an unlisted company, and independent director of Shenzhen Zhuolineng Technology Co., Ltd. He serves as independent directorof the Company since Nov. 2017.
Mr. Chen Zetong was born in 1970, a bachelor of laws at Southwest University of Political Science and Law, a master of laws at theUniversity of Hong Kong, a doctor of laws at Jilin University. From 1994 to 2003, he served as a court clerk, assistant judge andjudge at the Real Estate Trial Division of Shenzhen Intermediate People's Court; from July to August 2002, he practiced as a judicialassistant in the High Court of Hong Kong; from 2003 to 2006, he served as the presiding judge at the Economic Trial Division; from2006 to 2010, he served as the deputy presiding judge at the seventh court of Shenzhen Intermediate People's Court (CorporateLiquidation and Bankruptcy Trial Division), and presided over the work of this court from June 2006 to August 2008. From 2010 to2012, he served as a partner of Beijing King & Wood Mallesons. Since 2012, he has been a senior partner of Beijing JunZeJun LawOffices. He is currently an arbitrator of Shenzhen Court of International Arbitration (Also known as South China InternationalEconomic and Trade Arbitration Commission, Shenzhen Arbitration Commission), concurrently an independent director of listedcompany Tianma Microelectronics Co., Ltd. (A-share 000050), an independent director of non-listed company Funde InsuranceHolding Co., Ltd., an independent director of Funde Sino Life Co., Ltd., and an independent director of Sino Life AssetsManagement Co., Ltd. He serves an independent director of the Company since November 2017
Mr. Du Wei, born in 1955, senior engineer, Ph.D., graduated from the Institute of Plasma Physics Chinese Academy of Sciences,majoring in nuclear fusion and plasma physics. He served as a cadre of the National Energy Commission, assistant engineer andprincipal staff member of the Yangtze River Basin Planning Office, engineer and deputy manager of China Nanshan DevelopmentCo., Ltd., deputy general manager and general manager of Shenzhen Changjiang Computer Industry Corporation, deputy director anddirector of the senior manager evaluation and recommendation center of the Organization Department of Shenzhen MunicipalCommittee, deputy general manager of Shenzhen Expressway Development Co., Ltd.; president of Shenzhen International WesternLogistics Co., Ltd., general manager of Shenzhen International Qianhai Industry (Shenzhen) Co., Ltd., and senior consultant ofShenzhen International Business Management (Shenzhen) Co., Ltd. He is currently Current Executive Director of Shenzhen BorunInvestment Co., Ltd., and has been an independent director of the Company since November 2019.
Members of supervisory committee of the board:
Mr. Ye Qiliang was born in 1963, a member of the Communist Party of China with a college degree. From 1979 to January 1984, heserved in the Army 83020; from January 1984 to March 1997, he worked in Quannan County of Jiangxi Province; from March 1997
深圳南山热电股份有限公司2020年年度报告全文
to February 1999, he worked at Shenzhen Shennan Petroleum (Group) Co., Ltd. and served as a clerk in the investment department;from February 1999 to June 2009, he worked at Shenzhen Guangju Energy Co., Ltd. and served as the deputy director of the generalmanager office, the deputy director of the secretariat of the board of directors, and the representative of securities affairs; he serves asthe committee member of labor union of Shenzhen Guangju Energy Co., Ltd. since July 2012; from July 2009 to March 2016, hesuccessively served as the deputy general manager and general party branch member of Shenzhen Nanshan Petroleum Co., Ltd.; hehas served as the secretary of party general branch of the Company from April 2016 to July 2018, served as the deputy secretary ofparty general branch of the Company from July 2018 to May 2019, now he served as deputy party secretary the Company since May2019. Since November 2017, he has been the chairman of the company's board of supervisors.
Mr. Li Zhiwei, born in 1980, senior accountant, certified public accountant, national leading accountant (enterprise), Doctor ofAccounting, graduated from Xiamen University majoring in Accounting. He has successively served as cost strategy planner, financedirector of R & D system, investment director, subsidiary CFO, and foreign exchange director of ZTE Corporation, and chiefaccountant of ZTE Corporation. He currently serves as deputy director of the Planning and Finance Department of Shenzhen CapitalOperation Group Co., Ltd. (Former Shenzhen Yuanzhi Investment Co., Ltd.) and concurrently serves as a director of ShenzhenCMAF Intelligent Industry Co., Ltd. and a director of Shenzhen SD Microfinance Co., Ltd.; since June 2019, he has been asupervisor of the Company.
Mr. Liao Junkai, born in 1988, CPC member, master of law, graduated from South China University of Technology with a major inmaster of law (law). He has successively held positions of assistant, supervisor and manager of the Risk Control Department ofShenzhen Capital Co., Ltd. He is currently the senior manager of the Risk Control Department of Shenzhen Capital Operation GroupCo., Ltd. (Former Shenzhen Yuanzhi Investment Co., Ltd.), concurrently serve as supervisor of Shenzhen Academy of BuildingResearch Co., Ltd. He has been a supervisor of the Company since June 2019.
Mr. Liang Jianqiang, born in 1968, an engineer, bachelor degree, graduated from department of engineering physics of TsinghuaUniversity in 1991, major in nuclear energy and heat energy utilization. He worked in Shenzhen Moon Bay Gas Turbine Power Plantfrom 1991 to 1998, successively served as specialist engineer of gas turbine in operation department, sub-director of the gas turbinein inspection and maintenance department and specialist engineer of planning in inspection and maintenance department. He worksin Shenzhen Nanshan Power Co., Ltd. since July 1998 transferred by Shenzhen Energy Group Co., Ltd, and successively served asdeputy chief, chief of the inspection and maintenance department, deputy chief of the operation department, director of productionmanagement department and security chief. Served as chief of production technology department and security chief of the Companyfrom 2005 to 2013; Serves as deputy director in Nanshan Power Plant in December 2013 and acting manager of Nanshan PowerPlant since October 2017. He serves as director of Nanshan Power Plant in December 2017. Since September 2020, he has served asthe full-time deputy director of the company's safety committee office, and currently concurrently serving as Vice Chairman ofShenzhen New Power Industry Co., Ltd. He serves as employee supervisor of the Company since November 2014
Mr. Peng Bo was born in 1973, a senior economist, engineer, and a master graduate student. He graduated from Huazhong Universityof Science and Technology, majoring in power system automation in 1994, and then he majored in business administration atHuazhong University of Science and Technology and obtained a master's degree. He has been working in Shenzhen Nanshan PowerCo., Ltd. since 1994, and has served as a professional engineer of gas turbine thermal control maintenance, supervisor of labor andcapital, assistant of office director, and deputy director of human resources department; from April 2007 to December 2013, heserved as the director of human resources department, and concurrently served as the supervisor of a subsidiary Zhongshan ZhongfaPower Company; from May 2011 to November 2014, he served as the employee supervisor of the company's sixth board ofsupervisors; from December 2013 to December 2017, he served as the deputy director of Nanshan Thermal Power Plant; He hasserved as general manager of Nanshan Thermal Power Plant since September 2020, and currently concurrently director of Shenzhen
深圳南山热电股份有限公司2020年年度报告全文
Shennandian Environmental Protection Co., Ltd. Now he holds the employee supervisor of the Company since November 2017.
Senior officers of the Company:
Resume of Director/GM Chen Yuhui and Director/ standing deputy GM Wu Guowen found the aforesaid.
Ms. Zhang Jie, born in 1968, CHRM, Master of Psychology of Beijing University; she was successively study with specialty ofBritish and American Literature in the Foreign Language Department of Zhengzhou University and specialty of applied psychologyin the Psychology Department, Beijing University. She used to work in Henan Provincial Seismological Bureau as a translator in1990, worked in the financial department and office of Shenzhen Nanshan Power Co., Ltd. since October 1990; she successively heldthe posts of secretary, office director, general manager assistant and employee supervisor of the Company since 1993. and holds theposts of deputy GM of the Company since December 2006. She worked as chairman of Shenzhen Shen Nan Dian EnvironmentProtection Co., Ltd from 2014 to September 2018. She holds the secretary of the Board of the Company since 23 December 2015.
Mr. Dai Xiji was born in 1969, a bachelor, and a senior accountant. From July 1992 to December 1996, he served as an accountant ofShenzhen Mawan Power Co., Ltd. Mawan Power Plant; from January 1997 to July 1998, he served as an accountant at the financedepartment of Shenzhen Energy Corporation Power Generation Branch; from July 1998 to December 1999, he was an accountant atthe finance and accounting division of Shenzhen Energy Group Co., Ltd.; from December 1999 to December 2007, he served as thedeputy director at finance department and the director at finance and accounting division of Mawan Power Plant; from January 2008to September 2008, she served as the director at finance department of Shenzhen Mawan Power Co., Ltd.; from August to September2008, he served as the cadre at the preparation office of Binhai Power Plant; from September 2008 to July 2014, he served as thesenior manager at financial management department of Shenzhen Energy Group Co., Ltd.; From February 2011 to June 2014, heconcurrently serves as the manager at the financial management department of Shenzhen Energy Fuel Branch; from July 2014 toNovember 2017, he was appointed as the deputy general manager of Shenzhen Energy Fuel Branch, he serves as CFO of theCompany since November 2017 and now he also acts as the chairman of Shenzhen New Power Industrial Co., Ltd., the subordinateEnterprise of the Company and director of Shen Nan Energy (Singapore) Co., Ltd.
Post-holding in shareholder’s unit
√Applicable □ Not applicable
| Name | Name of shareholder’s unit | Position in shareholder’s unit n | Worked from | Expired on | Received remuneration from shareholder’s unit (Y/N) |
| Li Xinwei | Shenzhen Energy Group Co., Ltd. | Director | April 24, 2019 | N | |
| Huang Qing | Shenzhen Energy Group Co., Ltd. | Director | April 24, 2019 | N | |
| Li Wenying | Shenzhen Energy Group Co., Ltd. | Director | April 24, 2019 | N |
| Name | Name of other units | Position in other unit | Worked from | Expired on | Received remuneration from other unit (Y/N) |
深圳南山热电股份有限公司2020年年度报告全文
| Li Xinwei | Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | Chairman | October 30, 2018 | N | |
| Shenzhen Shennandian Turbine Engineering Technology Co., Ltd. | Chairman | January 18, 2019 | N | ||
| Shen Nan Energy (Singapore) Co., Ltd. | Director | December 27, 2017 | N | ||
| Li Hongsheng | Shenzhen Guangju Energy Co., Ltd. | Director, GM | December 22, 2007 | Y | |
| Huang Qing | Shenzhen Capital Operation Group Co., Ltd. | Deputy General Manager | September 1, 2016 | Y | |
| Chen Yuhui | Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | Chairman | August 26, 2017 | N | |
| Shen Nan Energy (Singapore) Co., Ltd. | Director | December 27, 2017 | N | ||
| Wu Guowen | Shenzhen Server Energy Co., Ltd. | Chairman | May 2, 2018 | N | |
| Li Wenying | Shenzhen Capital Operation Group Co., Ltd. | Director of the Investment Development Department | January 1, 2014 | Y | |
| Li Zhiwei | Shenzhen Capital Operation Group Co., Ltd. | Deputy director of accounting and finance department | May 1, 2018 | Y | |
| Liao Junkai | Shenzhen Capital Operation Group Co., Ltd. | Senior manager of risk control department | July 1, 2014 | Y | |
| Shenzhen Institute of Building Research Co., Ltd. | Supervisor | November 4, 2020 | N | ||
| Mo Jianmin | Da Hua Certified Public Accountants | Partner | June 9, 2014 | Y | |
| Shenzhen Kunpeng Holdings Co., Ltd. | Independent director | October 2019 | N | ||
| Shenzhen Zhuolineng Technology Co., Ltd. | Independent director | December 2020 | N | ||
| Chen Zetong | Junzejun Law Offices | Senior partner | September 1, 2012 | Y | |
| Tianma Microelectronics Co., Ltd. | Independent director | June 19, 2016 | N | ||
| Du Wei | Shenzhen Borun Investment Co., Ltd. | Executive director | February 2020 | Y |
深圳南山热电股份有限公司2020年年度报告全文
| Liang Jianqiang | Shenzhen New Power Industrial Co., Ltd. | Vice chairman | February 23, 2018 | N | |
| Shenzhen Nanshan Thermal Power Co., Ltd. Nanshan Thermal Power Plant | GM | December 12, 2017 | September 7, 2020 | Y | |
| Peng Bo | Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | GM | October 16, 2017 | September 7, 2020 | Y |
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | Director | October 16, 2017 | |||
| Shenzhen Nanshan Thermal Power Co., Ltd. Nanshan Thermal Power Plant | GM | September 7, 2020 | Y | ||
| Dai Xiji | Shenzhen New Power Industrial Co., Ltd. | Chairman | February 23, 2018 | N | |
| Shen Nan Energy (Singapore) Co., Ltd. | Director | December 27, 2017 | N |
| Name | Title | Sex | Age | Post-holding status | Total remuneration obtained from the Company (before taxes) | Whether remuneration obtained from related party of the Company |
| Li Xinwei | Chairman | M | 55 | Currently in office | 85.50 | N |
深圳南山热电股份有限公司2020年年度报告全文
| Li Hongsheng | Vice chairman | M | 57 | Currently in office | 0.00 | Y |
| Huang Qing | Director | M | 49 | Currently in office | 0.00 | Y |
| Chen Yuhui | Director, GM | M | 55 | Currently in office | 77.50 | N |
| Wu Guowen | Director, Standing deputy GM | M | 55 | Currently in office | 72.00 | N |
| Li Wenying | Director | M | 41 | Currently in office | 0.00 | Y |
| Mo Jianmin | Independent director | M | 54 | Currently in office | 11.90 | N |
| Chen Zetong | Independent director | M | 50 | Currently in office | 11.90 | N |
| Du Wei | Independent director | M | 65 | Currently in office | 11.90 | N |
| Ye Qiliang | Chairman of supervisory committee | M | 57 | Currently in office | 71.50 | N |
| Li Zhiwei | Supervisor | M | 40 | Currently in office | 0.00 | Y |
| Liao Junkai | Supervisor | M | 32 | Currently in office | 0.00 | Y |
| Liang Jianqiang | Employee supervisor | M | 52 | Currently in office | 43.60 | N |
| Peng Bo | Employee supervisor | M | 47 | Currently in office | 41.00 | N |
| Zhang Jie | Deputy GM, secretary of the Board | F | 52 | Currently in office | 69.50 | N |
| Dai Xiji | CFO | M | 51 | Currently in office | 69.50 | N |
| Total | -- | -- | -- | -- | 565.80 | -- |
深圳南山热电股份有限公司2020年年度报告全文
V. Particulars of workforce
1. Number of Employees, Professional categories, Education background
| Employee in-post of the parent Company (people) | 270 |
| Employee in-post of main Subsidiaries (people) | 133 |
| The total number of current employees (people) | 403 |
| The total number of current employees to receive pay (people) | 403 |
| Retired employee’ s expenses borne by the parent Company and main Subsidiaries (people) | 0 |
| Professional categories | |
| Types of professional category | Numbers of professional category |
| Production staff | 224 |
| Sales staff | 0 |
| Technical staff | 0 |
| Financial staff | 23 |
| Administration staff | 156 |
| Total | 403 |
| Education background | |
| Type of education background | Numbers (people) |
| High school and below | 66 |
| 3-years regular college graduate and Polytechnic school graduate | 166 |
| Bachelor degree | 149 |
| Master and above | 22 |
| Total | 403 |
深圳南山热电股份有限公司2020年年度报告全文
Board of Directors will decide the annual remuneration standard of the senior officers of the Company on the basis of annualoperating efficiency, post rank and other factors and in consideration of the industrial remuneration level and the actually paidremuneration standard by referring to the examination of annual operation performance and audit status. The operation team isauthorized to manage the remuneration of other personnel on the principle of “defining salary in terms of post and obtainingremuneration in terms of labor”. Within the annual remuneration limit approved by the board of directors, and in compliance with theremuneration principle and Interim Remuneration Management Provision set down by the Board of Directors, determine and executethe remuneration standard, distribution plan, examination and incentive method of employees at each level.
3. Implementation of employee training
The Company always attached great importance to staff training, and established of the "staff training and management regulations"and a more perfect training network. Through strengthening the staff training, enhancing the staff's job skills and comprehensivequality, to better meet the Company's management, management demand for talent, while training reserve personnel for theCompany's sustainable development. During the reporting period, the Company strictly implemented the training plans thatformulated in beginning of the Year, mainly carried out the following aspects of the training:
(1) Safety Training: According to the Production Safety Law, other laws and regulations and the Safety Training Regulations of theCompany, organize the safety certificate training and following training for the safety principal, principal and security officer of theCompany headquarters and affiliated companies in order to meet legal regulatory requirements for security training, carry outemergency drills and safety management procedures training, and improve the safety awareness and accident prevention capacity ofmanagement at all levels and employee;
(2) Post qualification training: by means of learning assignments, the obtaining of certificate, internal training and assessment, carryout certification training for key business and technical post, meet with requirements of relevant laws and regulations for vocationalqualification requirements, and improve employee job performance ability.
(3) Simulator skills training: relying on gas turbine simulation training base, continued to carry out stimulator training for theoperation personnel within three power plants of the Company, and improve the practical operation and adaptability to changes ofplant operations personnel.
(4) The induction training of new employees: Carry out systematic and pointed job skill and professional training for the newlyrecruited graduates of the company;
(5) Training and study of party members: the Company Party committee and the party branches of the company will formulatedetailed and feasible plans according to the requirements of the higher-level organizations, and actively carry out the learningactivities of “two studies and one doing” and “studying makes a stronger country” by adopting various forms such as issuing booksand materials, bringing in teachers and experts, and leading party members to go out; strictly implement the “three meetings and oneclass” system, and develop activities such as “secretary teaches party lessons”. We will ensure that party organizations play the roleof battle-bastion and the majority of party members to play a vanguard and exemplary role through training and study.
4. Labor outsourcing
□ Applicable √ Not applicable
深圳南山热电股份有限公司2020年年度报告全文
Section X. Corporate Governance
I. Corporate governance of the CompanyDuring the reporting period, in accordance with guideline of Company Law, Securities Law, Corporate Governance Guidelines,Stock Listing Rules and administrative regulations, other regulatory documents, and requirements of Articles of Associations andrules of procedures, constantly optimized the corporate governance structure, maintained sound modern enterprise managementsystem, improve governance and standardization meticulous management, and effectively protected the interests and legitimate rightsof listed companies, investors and employees.
1. Shareholders' meeting: the Company holds the shareholders general meeting in strict accordance with the legal procedures, and toensure that the shareholders exercise their rights in accordance with the law. During the reporting period, the Company held oneregular shareholders’ meeting and two extraordinary shareholders meeting to carefully deliberate and decide on issues which weresubmitted to the general shareholders’ meeting for approval. The convening of the shareholders’ meeting was legal and alldecision-making processes were open, fair and just. The qualifications and proposals of the attendees met the requirements of lawsand regulations, and the resolutions of the shareholders' general meeting were disclosed in a timely manner after the meeting, whicheffectively protected all shareholders from exercising their right to know and vote on major issues of the Company in accordancewith the law. Shareholders of the Company earnestly fulfilled their responsibilities under the Company Law and Articles ofAssociation , there were no large shareholders and related parties who occupied or transferred the Company's funds, assets and otherresources with various forms.
2. Board of Directors: The Company's board of directors adhered to standardized operation and management, took various measuresto strengthen its own construction, and improved the board's standardized operation and scientific decision-making level. In thereport period, the Board of Directors of the Company held two regular meetings and six extraordinary meetings to carefully research,deliberate and make decisions on significant matters within the rights of board of directors. Four special committees under the Boardof Directors, the Strategy and Investment Committee, Audit Committee, Nomination Committee, as well as Remuneration andAppraisal Committee are carefully deliberated relevant proposals and giving opinions and suggestions. The full use of the active roleof the special committees in major investment decisions, important personnel adjustments, standardized salary management, internalaudit, and risk control has effectively ensured the scientific nature of the Company's decisions and the normalization of management.Independent directors played their professional advantages, upheld the objective and independent principle and conscientiouslyperformed their duties, and paid attention to the interests of the Company as a whole and those the shareholders of the Company,especially the legitimate interests of minority shareholders. They issued independent opinions on resolutions and brought forwardconstructive comments and suggestions on the Company’s standardized operation and risk prevention.
3. Supervisory Committee: pursuit to relevant rules of laws and regulations, supervisory committee of the Company perform thesupervision responsibility in line with to the Company and shareholders responsible manner. During the reporting period, theSupervisory Committee of the Board held two regular meetings and four extraordinary meetings, effectively supervised theday-to-day operations of the board of directors, the Company's financial status, operating conditions, related transactions, assetdisposal, financial investment, and the legality and compliance of directors and senior management in performing their duties,independently issued opinions, and effectively protected the legitimate rights and interests of the Company and shareholders,especially the small and medium shareholders. At the same time, the board of supervisors extended the connotation of supervisionand standardized operation and risk prevention to daily operations, the board of supervisors also learned about the Company'soperations and management by attending the shareholders' meetings and attending the board meetings and organizing on-siteinspections on the Company's subsidiaries to better understand the Company's operations and management so as to better performsupervisory duties.
深圳南山热电股份有限公司2020年年度报告全文
4. Manager Office: During the reporting period, the Company's managers strictly implemented various decisions of the shareholders'meeting and the board of directors in accordance with the requirements of relevant laws and regulations and the Company's Articlesof Association and other regulatory documents, and actively organized the Company's various production, operation and managementtasks, constantly improved the office conference system and internal control system, continued to optimize work processes anddecision-making procedures, built a harmonious and aggressive corporate culture atmosphere, followed the work principle ofreasonable division of labor and enhanced cooperation and the purpose of collective decision-making on major issues, andcontinuously improved the Company's management level and strive to achieved better business performance.
5. Major information confidentiality : In strict accordance with the regulations and requirement of Rules Governing the Listing ofStocks and Insiders Registration System, to standardize the confidentiality of inside information, and submit the inside informationlist in strict accordance with relevant regulations, kindly reminded the insider information to strictly comply with the relatedregulations on insider information confidentiality and stocks trading of the Company before the convening of the meetings of generalshareholders, board of directors and supervisory board. There were no significant information disclosures within the reporting period.There were no significant information disclosures within the reporting period. During the reporting period, the Company did notprovide undisclosed information to large shareholders in violation of information disclosure requirements.
6. Information disclosure and investor relations management: During the reporting period, in strict accordance with the requirementof relevant laws, regulations and normative documents as Company Law, Rules Governing the Listing of Stocks and ManagementMechanism of the Information Disclosure, conscientiously fulfill the obligation of information disclosure, and disclosed the periodicand Ad-hoc Reports in a timely and fair manner to whole shareholders on China Securities Journal, Securities Times, Hong KongCommercial Daily and Juchao Website with truthfulness, accuracy and completeness contents. In 2020, the Company completed thepreparation and disclosure of periodic reports and interim announcements on schedule, a total of 62 announcements were issuedthroughout the year, strive to give investors a complete picture of the Company’s produce, operation, governance, and significantmatters. The Company strictly complied with the requirements of the "Company Investor Relations Management Work System" anddid a good job in investor relations management. In addition to the on-site visit reception, it also used the Company's mailbox,investor phone line, and the irm.cninfo.com.cn of Shenzhen Stock Exchange, the smooth communication channels with investorsenabled investors to have a more comprehensive, in-depth and objective understanding of the Company.
7. Internal control and standardized management: During the reporting period, in order to better meet the company's needs forstandardized governance and efficient operation, in accordance with the requirement of relevant laws, regulations and normativedocuments, combine with actual condition of the Company, to established and completed the management mechanism and workingprocedure matching the innovation management mode timely, to ensure an efficient decision-making and standardization of thebusiness operation. The Company carried out special audit work on internal control self-evaluation and internal regular audit, andtook active and effective measures to improve existing problems and deficiencies. Strengthened the training and ideologicaleducation of directors, supervisors, senior officers personnel, and middle-level management cadres at all levels, and emphasized theperformance of duties according to law, standardized the words and deeds, and fought against corruption. The company has beenstriving to prevent business management risks by continuously improving the internal control system, increasing the assessment andrewards and punishments, and further improving the standardization of management.
8. Self-examination and continuous improvement of corporate governance: in accordance with the spirit of the "Opinions of the StateCouncil on Further Improving the Quality of Listed Companies" and the "Notice of the Shenzhen Securities Regulatory Bureau onPromoting the Implementation of Main Responsibilities of Listed Companies in the Jurisdictional Area to Improve Governance andAchieve High-Quality Development" and other documents and the relevant requirements of Shenzhen Securities Regulatory Bureau,the company carried out a self-inspection of the governance situation and formed a "Self-inspection Report on the Quality ofCorporate Governance", which was submitted to the Shenzhen Securities Regulatory Bureau within the specified time (beforeDecember 31, 2020), and in accordance with the requirements, on February 1, 2021, the "Self-inspection Report on the Quality ofCorporate Governance" has been submitted to the sixteenth extraordinary meeting of the company's eighth board of directors fordeliberation. In accordance with the spirit of the China Securities Regulatory Commission's "Announcement on Launching Special
深圳南山热电股份有限公司2020年年度报告全文
Actions on the Governance of Listed Companies" and the requirements of the Shenzhen Securities Regulatory Bureau, the companyhas initiated relevant work, which will be completed on schedule.
Is there any difference between the actual condition of corporate governance and relevant regulations about corporate governance forlisted Company from CSRC?
□Yes √ No
There are no differences between the actual condition of corporate governance and relevant regulations about corporate governancefor listed Company from CSRC.
II. Independence of the Company relative to controlling shareholders’ in aspect of businesses,personnel, assets, organization and financeThe Company has not controlling shareholder. The Company is completely independent in personnel, assets, finance, business, andinstitutions and is able to make independent decision and operations.
1. Personnel independence: The Company has set up an independent human resource management system and compensation &benefits systems. All members of the management level and senior officers are full-time executives and are paid remuneration by theCompany and none of them takes any administrative positions other than director and supervisor in shareholders units. Within theamount approved by the Board, the Company independently hires or fires employees according to the management needs. TheCompany has established a more perfect human resources management system, and has an independent management right.
2. Assets independence: the Company has independent production facilities and auxiliary systems, land use rights, property rights,office facilities and equipment. Within the range authorized by the board of directors and general shareholders’ meeting, theCompany has the powers of independent acquisition and disposition of assets.
3. Financial independence: The Company has independent financial management and accounting system, is equipped withindependent financial management and accounting personnel, and establishes a relatively sound financial management system,independent bank account and tax accounts. Within the range authorized by the board of directors and shareholders’ meeting, theCompany can made independent financial decision and there are no substantial shareholders with financial management interference,embezzlement of funds and other circumstances.
4. Business independence: the Company independently carries out production and business activities, has set up independent andcomplete production, procurement, sales channels and management system. Within the range authorized by the board of directors andshareholders’ meeting, the Company makes its own management decisions, carries out self management and takes fullresponsibilities for its own profits and losses.
5. Independent organization: The Company, in accordance with the needs of production, operation, management, followed modernenterprise management standards and established a relatively sound organization and management structure. There were neitherinterference of shareholders in the establishment and operation of the neither Company nor organization structure shared betweenshareholders and the Company.III. Horizontal competition
□ Applicable √ Not applicable
深圳南山热电股份有限公司2020年年度报告全文
IV. In the report period, the Company held annual shareholders’ general meeting andextraordinary shareholders’ general meeting
1. Annual Shareholders’ General Meeting in the report period
| Session of meeting | Type | Ratio of investor participation | Date | Date of disclosure | Index of disclosure |
| First Extraordinary shareholders’ general meeting of 2020 | Extraordinary shareholders’ general meeting | 42.09% | March 23, 2020 | March 24, 2020 | Announcement name: “ Shenzhen Nanshan Power Co., Ltd. Resolution Notice of First Extraordinary shareholders’ general meeting of 2020”; Announcement number:2020-019; published on “China Securities Journal” “Securities Times” “Hong Kong Commercial Daily” and Juchao Website |
| Annual General Meeting of 2019 | AGM | 38.72% | April 10, 2020 | April 11, 2020 | Announcement name: “ Shenzhen Nanshan Power Co., Ltd. Resolution Notice of Annual General Meeting 2019”; Announcement number:2020-021; published on “China Securities Journal” “Securities Times” “Hong Kong Commercial Daily” and Juchao Website |
| Second Extraordinary shareholders’ general | Extraordinary shareholders’ general meeting | 38.78% | October 16, 2020 | October 17, 2020 | Announcement name: “ Shenzhen Nanshan |
深圳南山热电股份有限公司2020年年度报告全文
| meeting of 2020 | Power Co., Ltd. Resolution Notice of Second Extraordinary shareholders’ general meeting of 2020”; Announcement number:2020-049; published on “China Securities Journal” “Securities Times” “Hong Kong Commercial Daily” and Juchao Website |
| The attending of independent directors to Board Meeting and Shareholders General Meeting | |||||||
| Independent Director | Times of Board meeting supposed to attend in the report period | Times of Presence | Times of attending the Board Meeting by communication | Times of entrusted presence | Times of Absence | Absent the Meeting for the second time in a row (Y/N) | Times of attend the general meeting |
| Mo Jianmin | 8 | 0 | 8 | 0 | 0 | N | 1 |
| Chen Zetong | 8 | 0 | 8 | 0 | 0 | N | 2 |
| Du Wei | 8 | 0 | 8 | 0 | 0 | N | 3 |
深圳南山热电股份有限公司2020年年度报告全文
3. Other explanation about responsibility performance of independent directorsThe opinions from independent directors have been adopted
√ Yes □ No
Explanation on advice that accepted/not accepted from independent directors
Within the reporting period, in accordance with the Company Law, the Corporate Governance Guidelines, Guideline on theEstablishment of Independent Directors in Listed Companies, the Working System of Independent Directors, the Articles ofAssociation and other requirements of normative documents, and based on the spirit of independence, objectivity and the principle ofprudence, all independent directors of the Company conscientiously performed their duties, understood and paid attention to theCompany's business development, and deliberated and voted all resolutions submitted by the board of directors. Besides, by means oftheir professional advantages in their respective fields, all independent directors deeply and prudently judged significant matters forwhich the opinions of independent directors were necessary, delivered a written independent opinions and made recommendations tosafeguard the legitimate interests of the Company and all shareholders. The Board of Directors fully respected the performance ofduties by independent directors, attached great importance to and carefully accepted the views and recommendations of theindependent director. And there were no recommendations of independent directors not adopted.
VI. Duty performance of the special committees under the board during the reporting period
(i) Strategy and investment management committee
1. Attending the meeting of the Board and shareholders general meeting, keep track of the production, operation and development ofthe CompanyIn 2020, member of the strategy and investment management committee attended the 8 meetings of the Board, 3 shareholders generalmeetings, they careful review the all comprehensive documents as Work Report of GM for year of 2019, and Proposal for financialstatement report of 2019, Integrated Business Plans for year of 2020, performing the duties and offering advice and suggestions tothe Board with purpose of keep track of the Company’s production and operation.
2. Convening a meeting of strategy and investment management committee, review the company's major investment decisionsOn March 5, 2020, the Strategy and Investment Management Committee of the 8
th
Board of Directors of the Company held its fifthmeeting by way of communication voting, reviewed and approved the Proposal on Transferred 70% Equity of Shen Nan Dian(Dongguan) Weimei Electric Power Co., Ltd by Agreement and Proposal on Investing in Yuanzhi RuixinNew Generation InformationTechnology Equity Investment Fund and Related Transactions.On March 18, 2020, the Strategy and Investment Management Committee of the 8
th
Board of Directors of the Company held its sixthmeeting by way of communication voting, reviewed and approved the 2019 Annual Performance Report of the Strategy andInvestment Management Committee of the Board of Directors, and studied and determined the work ideas and work plans for 2020.On September 28, 2020, the Strategy and Investment Management Committee of the 8
thBoard of Directors of the Company held itsseventh meeting by way of communication voting, reviewed and approved the “Proposal on Investment in the ZhongshanPrefabricated Building Industrial Park Project" and Proposal on Purchasing Financial Products with Idle Own Funds.On October 22, 2020, the Strategy and Investment Management Committee of the 8
th
Board of Directors of the Company held itsseventh meeting by way of communication voting, reviewed and approved the Proposal on Investment for Zhuhai Hengqin ZhuozhiInvestment Partnership (Limited Partnership).(ii) Audit Committee
1. Attending the meeting of the Board and shareholder general meeting, know the production, operation and development of theCompanyIn 2020, the audit committee members of the company’s board of directors attended 8 board meetings, 3 shareholders meetings, and
深圳南山热电股份有限公司2020年年度报告全文
carefully reviewed all documents including “2019 Annual General Manager Work Report” and “Proposal on the 2020 AnnualComprehensive Business Plan” and conduct careful research on documents as auditing reports and internal control system andrelevant proposals, creating conditions for conscientious performance of duties and suggestions to the Board.
2. Held meeting of Audit Committee and issued opinions on annual audit and other related matters.On January 9, 2020, the eighth meeting of the Audit Committee of the eighth Board of Directors of the Company was held bytelephone conference. The meeting heard the explanation from Lixin Zhonglian Certified Public Accountants (SPECIAL GENERALPARTNERSHIP)’s introduction to the communication issues with the management during the 2019 annual audit, and discussed theimportant matters raised by the accountants in the audit process item by item, and determined the treatment opinions on the importantmatters, and required the Company to cooperate with the audit institution to finalize the 2019 annual audit report in strict accordancewith the requirements of regulatory authorities.On March 18, 2020, the Audit Committee of the 8
th
Board of Directors of the Company convened the 9
th
meeting by way ofcommunication voting, and listened to the 2019 Financial Audit Report and 2019 Internal Control Audit Report, the deliberationreviewed and passed the Proposal for Reviewing 2019 Annual Internal Control Evaluation Report, the Re-engagaement of AuditingInstitution and Remuneration for year of 2020 and the 2020 Duty Performance Report of the Audit Committee of the Board etc.
(iii) Nomination Committee
1. Attending the shareholding meeting and the Board, keep track of the production, operation and development of the CompanyIn 2020, members of the Nomination Committee of the 8
thBoard of Directors attended 8 Board meetings, and 3 shareholdersmeetings, they careful review the all documents as Work Report of GM for year of 2019, and Integrated Business Plans for year of2020. Keep track of the Company’s production and creating condition for performing the duties and offering advice and suggestionsto the Board.
2. Convened meeting of Nomination Committee, consider the review the Performance Report for year of 2019On March 18, 2020, the Nomination Committee of the 8
th
Board of Directors of the Company convened the 6
th
meeting, reviewedand approved the Performance Report for year of 2019 of Nomination Committee of the Board, and formulated a working ideas andplans for the year of 2020.
(iv) Remuneration and Appraisal Committee
1. Attending the meeting of the Board and shareholders general meeting, and propose opinions and plans on remuneration,assessment and rewardIn 2020, members of the remuneration and appraisal committee attended 8 Board meetings, 3 shareholders’ meetings, they carefulreview all documents as Work Report of GM for year of 2019, Proposal on the 2019 financial final report, and Integrated BusinessPlans for year of 2020, and creating condition for offering suggestion and plan to the Board in order to performing their duties;Furthermore, reviewing and deliberating relevant proposals with remuneration and awarding plans concerned, keep eyes on theimplementation of remuneration and propose suggestion; organized activities of formulating relevant reward programs and supervisethe implementation, which conscientiously fulfill the obligation of diligence and duties.
2. Held meeting of Remuneration and Appraisal Committee, deliberated the resolution on the provision of annual remuneration andrelevant rewards with appraisal concerned, and make recommendations for the Board of DirectorsOn March 18, 2020, the Remuneration and Appraisal Committee of the 8
th Board of Directors convened 4
thmeeting by way ofcommunication voting, reviewed and approved the Work Report of Remuneration and Appraisal Committee for year of 2019,Proposal to Award the 2019 Profitable Award and Proposal on Accrual of Special Award for Year of 2020.On May 20, 2020, the Remuneration and Appraisal Committee of the 8
th Board of Directors convened 5
th
meeting by way ofcommunication voting, reviewed and approved the Proposal on Distribution of Profitable Award for year of 2019.
深圳南山热电股份有限公司2020年年度报告全文
On September 28, 2020, the Remuneration and Appraisal Committee of the 8
th Board of Directors convened 6
thmeeting by way ofcommunication voting, reviewed and approved the Proposal on Accrual of Fixed Pay for Year of 2020.On December 8, 2020, the Remuneration and Appraisal Committee of the 8
th Board of Directors convened 7
thmeeting by way ofcommunication voting, reviewed and approved the Proposal on Specific Evaluation and Accrual Method for the TransitionalDevelopment Award for 2020.VII. Works from Supervisory CommitteeThe Company has risks in reporting period that found in supervisory activity from supervisory committee
□ Yes √ No
Supervisory committee has no objection about supervision events in reporting periodVIII. Examination and incentives of senior officersThe Remuneration and Evaluation Committee of the Board is responsible for setting down and supervision implementation theappraisal and remuneration system of Company managers and other senior officers personnel to develop, established theremuneration incentive mechanism liked with operation performance. At the beginning of the year, according to the annual operationtarget, core tasks and post ranks of senior officers, and in comprehensive consideration of the industrial and regional remunerationlevel, research and determine the total amount of remuneration and the remuneration and appraisal standard of senior officers. Afterthe year ends, determine the annual remuneration granting standard in accordance with the appraisal of completion of operationperformance and in combination of the performance of duties of senior officers.IX. Internal Control
1. Details of major defects in IC appraisal report that found in reporting period
□ Yes √ No
2. Appraisal Report of Internal Control
| Disclosure date of full internal control evaluation report | March 26, 2021 |
| Disclosure index of full internal control evaluation report | “Evaluation report of internal control for year of 2020” published on Juchao Website (www.cninfo.com.cn) |
| The ratio of the total assets of units included in the scope of evaluation accounting for the total assets on the Company's consolidated financial statements | 99.30% |
| The ratio of the operating income of units included in the scope of evaluation accounting for the operating income on the Company's consolidated financial | 100.00% |
深圳南山热电股份有限公司2020年年度报告全文
| statements | ||
| Defects Evaluation Standards | ||
| Category | Financial Reports | Non-financial Reports |
| Qualitative criteria | Major defects: under major operational activities, there are major defects in several companies which are consolidated into the preparation of financial statements, or there are major defects in few of companies which are consolidated into the preparation of financial statements but the Company with major defect are the main one participating into such major operation activities; Substantial defects: under major operational activities, there are substantial defects in few of companies which are consolidated into the preparation of financial statements, or there are moderate defects in several companies which are consolidated into the preparation of financial statements but the Company with major defect are the main on participating into such major operation activities; or there are moderate defects in few of companies which are consolidated into the preparation of financial statements but the Company with moderate defect are the main one participating into such major operation activities; General defects: under major operational activities, there are moderate defects in few of companies which are consolidated into the preparation of financial statements, and the Company with moderate defects is not the main one participating into the major operational activities; or there are only general defects in companies which are consolidated into the preparation of financial statements; there are no internal control defects in major operational activities and there are only internal control defects in minor operational activities. | Major defects: under major operational activities, there are major defects in several companies which are consolidated into the preparation of financial statements, or there are major defects in few of companies which are consolidated into the preparation of financial statements but the Company with major defect are the main one participating into such major operation activities; Substantial defects: under major operational activities, there are substantial defects in few of companies which are consolidated into the preparation of financial statements, or there are moderate defects in several companies which are consolidated into the preparation of financial statements but the Company with major defect are the main on participating into such major operation activities; or there are moderate defects in few of companies which are consolidated into the preparation of financial statements but the Company with moderate defect are the main one participating into such major operation activities; General defects: under major operational activities, there are moderate defects in few of companies which are consolidated into the preparation of financial statements, and the Company with moderate defects is not the main one participating into the major operational activities; or there are only general defects in companies which are consolidated into the preparation of financial statements; there are no internal |
深圳南山热电股份有限公司2020年年度报告全文
| control defects in major operational activities and there are only internal control defects in minor operational activities. | ||
| Quantitative standard | Major defects: mistaken amount ≥total assets in consolidated financial statement×0.5% Substantial defects: total assets in consolidated financial statement×0.2%≤mistaken amount< total assets in consolidated financial statement×0.5% General defect: mistaken amount <total assets in consolidated financial statement×0.2% | Major defects: amount of direct loss ≥total assets in consolidated financial statement ×0.5% Substantial defects: total assets in consolidated financial statement×0.2%≤ amount of direct loss< total assets in consolidated financial statement×0.5% General defect: amount of direct loss <total assets in consolidated financial statement×0.2% |
| Amount of significant defects in financial reports | 0 | |
| Amount of significant defects in non-financial reports | 0 | |
| Amount of important defects in financial reports | 0 | |
| Amount of important defects in non-financial reports | 0 | |
| Deliberations in Internal Control Audit Report | |
| The accountant firm thinks Shenzhen Nanshan Power Co., Ltd. maintains effective internal control of financial report in all significant aspects in accordance with the Basic Regulation of Enterprise Internal Control | |
| Disclosure of internal control audit report | Disclosed |
| Disclosure date of audit report of internal control (full-text) | March 26, 2021 |
| Index of audit report of internal control (full-text) | “Audit report of internal control for year of 2020” published on Juchao Website (www.cninfo.com.cn) |
| Opinion type of auditing report of IC | Standard unqualified |
| whether the non-financial report had major defects | No |
深圳南山热电股份有限公司2020年年度报告全文
Carried out modified opinion for internal control audit report from CPA
□ Yes √ No
The internal control audit report, issued by CPA, has concerted opinion with self-evaluation report, issued from the Board
√ Yes □ No
深圳南山热电股份有限公司2020年年度报告全文
Section XI. Corporate Bonds
Whether the Company has a corporate bonds that issuance publicly and listed on stock exchange and without due on the date whenannual report approved for released or fail to cash in full on dueNo
深圳南山热电股份有限公司2020年年度报告全文
Section XII. Financial ReportI. Audit report
| Type of audit opinion | Standard unqualified opinion |
| Signing date of audit report | March 24, 2021 |
| Name of audit institute | LIXINZHONGLIAN CPAS (SPECIAL GENERAL PARTNERSHIP) |
| Number of Audit report | LIXINZHONGLIAN Shen Zi[2021]D-0253 |
| Name of CPA | Liu Xinfa, Cao Wei |
Section XIII. Documents available for Reference
I. Original Annual Report of 2020 carrying the signature of the legal representative of the CompanyII. Financial statement with signature and seal of Person in charge of the Company (legal person), person in charge of accountingworks (General manager and chief financial officer) and person in charge of accounting organ(accountant in charge);III. Original audit report seal with accounting firms and signature and seal from CPA;IV. Text of notice and original draft that public on China Securities Journal, Securities Times and Hong Kong Commercial Daily thatappointed by CSRC within report period.V. The place where the document placed: Shenzhen Stock Exchange, Office of Board of Directors of the Company.
立信中联会计师事务所（特殊普通合伙）LixinZhonglian CPAs (SPECIAL GENERAL PARTNERSHIP)
Content
I. Auditor’s Report 1—6II. Financial Statement
1. Consolidated Balance Sheet and Balance Sheet of Parent Company1—4
2. Consolidated Profit Statement and Profit Statement for Parent Company5—6
3.Consolidated Cash Flow Statement and Cash Flow Statement for Parent Company7—8Consolidated Statement of Changes in Shareholders’ Equity and Changes in Shareholder’s Equity9—12
5.Annotations of Financial Statement 1—81
Auditor’s ReportLixinZhonglian Shen Zi[2021]D-0253To Shareholders of Shenzhen Nanshan Power Co., Ltd.
I. Auditor’s opinionWe, as the auditors, audited the financial statements of Shenzhen Nanshan Power Co., Ltd. (hereinafter the “Company”), whichincluded the consolidated and parent company’s balance sheet as of 31 December 2020, the consolidated and parent company’sstatement of income, the consolidated and parent company’s statement of cash flow and the consolidated statement of changes inequity of the Company and parent company’s for the year ended 31 December 2020, together with the relevant notes thereto.
We have the view that the attached financial statements are prepared in accordance with the Accounting Standards for BusinessEnterprises in all material aspects, which reflect fairly the consolidated financial position of the Company and parent company’s asof 31 December 2020 and the operating results and cash flow of the Company and parent company’s for the year of 2020.
II. Basis for audit opinionsWe conducted this audit under the requirements of the Auditing Standards of the Certified Public Accountant of the PRC. Thesection headed “Certified Public Accountant’s responsibility for audit of financial statement” in the audit report has further clarifiedour responsibilities under these standards. Pursuant to the code of professional conduct as certified public accountant in the PRC,we are independent of the Company and have performed other responsibility as required by our professional ethics. We believe thatthe audit evidence obtained by us is sufficient and adequate, which provides foundation for us to issue audit opinion.
III. Key audit itemsKey audit issues refer to those which in our opinion based on our professional judgment are the most important issues in respect ofaudit for the current financial statements. We issue audit opinions on these issues in their entity and provide no opinions separatelyfor each of them.
| Key audit items | Countermeasures |
| (i) Impairment of assets | |
| Reference to the Annotations of Financial Statement with the “19. Accounting policy” in Note III. Major accounting policies and estimation, and the note (40) of V. Annotation of the items in consolidate financial statement As at 31 December 2020, the Company has fixed assets and construction in progress with carrying value of RMB 968,527,921.65 in total, accounting for 32.05% of the consolidated total assets and 89.11% of the non-curre | Auditing procedures on the impairment of assets including: 1.assess and test the design and effectiveness of execution of the internal control related to assets impairment; 2.select samples of assets to implement supervision procedure, so as to understand whether the assets experience backward crafts, long-term idle and load rate; 3.Make use of the work of the experts of external appraiser, comprehensively evaluate the parameters used in ass |
| nt assets of the Company, which constitutes the essential part of the Company’s assets. For the year of 2020, the assets impairment loss recognized in consolidate financial statement amounted to RMB 43,718,679.38, a 62.14% takes in total profit of the consolidate profit statement, which has a great impact on the operating results of Shen Nan Dian. The management has assessed whether there is any sign of impairment in above assets. For those assets with impairment sign identified, the management makes impairment test by comparison between the recoverable amount of the assets (calculated individually or the assets group in which the asset belongs to) and their carrying value. Since the management of Shen Nan Dian needs to determine the estimated recoverable amount of assets with significant accounting estimation and judgment, and the impact amount is significant, we determine the impairment of assets as a key audit item | essment method of the external appraiser’s qualification and competency |
| (ii) Revenue recognition principle | |
| As for the accounting policy for revenue recognition and analysis of revenue, reference to the Annotations of Financial Statement with the “(24) Accounting policy” in Note III Major accounting policies and estimation and the Note (31). in V. Annotation of the items in consolidate financial statement In 2020, consolidate operation revenue for Shen Nan Dian amounted as RMB 985,253,831.58, a 19.41% down from a year earlier. Since the operation revenue is one of the key performance indicators of the Company, and there is an inherent risk that the revenue recognition point may be manipulated to achieve specific objectives or expectations, we identify the revenue recognition as a key audit item. | Auditing procedures with recognition of operation revenue concerned including: 1. Evaluate the design and operational effectiveness of key internal controls related to revenue recognition; 2. Select sample to examining the sales contract, identify terms and conditions of the contract relating to the transfer of risk and reward in the ownership of the goods, and to evaluate whether the point of revenue recognition conforms to the requirements of Accounting Standards for Business Enterprises; 3. Make substantial analysis process with respect to operating income and gross profit, and make judgment on the reasonableness of the change in operating income and gross profit for the period; 4. Select samples from the accounting records of operating income and settlement sheet of power rate to review the truthfulness and completeness of operating revenue recognition; inspect receivables records and select samples to issue letters to enquire the balance of ending trade receivables and amount received in advance. Together with the collection of trade receivables in subsequent periods, to confirm the truthfulness of sales transactions; 5. Make deadline test on operating income to confirm w |
IV. Other informationThe management of Shen Nan Dian (hereinafter, the Management) is responsible for other information, which includes theinformation covered in the Annual Report of 2020 except for the financial statements and our audit report.
Our audit opinion issued on financial statement does not cover other information, and we would not issue any form of verificationconclusion for those information.
To prepare our audit on financial statement, we are required to read other information, and during the procedure, to consider thatwhether other information differs materially from the financial statement or the information obtained by us during the audit orwhether there exits material error.
Based on the works done by us, in case we find any material error in other information, we shall report this fact. In this regard, wehave nothing to report.
V. Management’s responsibility for financial statementsThe Management is responsible for preparing financial statements according to the Business Accounting Standards which make fairreflection, and for designing, implementing and maintaining necessary internal control system to make sure that there is no materialmisstatement in the financial statements due to fraud or mistake.
When preparing the financial statements, the management is responsible for assessing the Company’s ability of continuousoperation, disclosing the matters relating to continuous operation and applying the assumption of continuous operation, unless themanagement plans to liquidate the Company, terminate operation or has no other practicable choice.
The governance is responsible for monitoring the financial reporting process of the Company.
VI. Auditor’s responsibility for audit of the financial statementsOur objectives are to obtain reasonable assurance about whether these financial statements as a whole are free from materialmisstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is ahigh level of assurance, but is not a guarantee that an audit conducted in accordance with auditing standards will always be found inthe presence of a material misstatement. Misstatements can arise from fraud or error and are considered material if, individually orin the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of thesefinancial statements.
As part of an audit in accordance with auditing standards, we exercise professional judgment and maintain professional skepticismthroughout the audit. We also:
(1)Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design andperform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, asfraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2)Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in thecircumstances.
(3)Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosuresmade by management.
(4)Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidenceobtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’sability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in ourauditor’s report to the related disclosures in these financial statements or, if such disclosures are inadequate, we have to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events orconditions may cause the Company to cease to continue as a going concern.
(5)Evaluate the overall presentation, structure and content of the financial statements, and whether the financial statements representthe underlying transactions and events in a manner that achieves fair presentation.
(6)Obtain adequate and appropriate audit evidence in relation to the financial information of the entities or business transactions ofthe Company, in order to issue audit opinion on the financial statement. We are responsible for guiding, supervising and executingthe audit for the Group, and we accept full responsibility for the audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the auditand significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirementsregarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bearon our independence, and related safeguards (if applicable).
From the matters communicated with those charged with governance, we determine those matters that were of most significance inthe audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in ourauditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, wedetermine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
LIXINZHONGLIAN CPAs(SPECIAL GENERAL PARTNERSHIP) Chinese CPA (Engagement partner):
Chinese CPA:
Tianjin China March 24, 2021
Financial Statements
1. Consolidated balance sheet
Shenzhen Nanshan Power Co., Ltd.
December 31, 2020
In RMB
| Item | December 31, 2020 | December 31, 2019 |
| Current assets: | ||
| Monetary funds | 764,601,272.21 | 773,209,854.84 |
| Settlement provisions | ||
| Capital lent | ||
| Tradable financial assets | ||
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | 85,293,052.88 | 178,150,580.32 |
| Receivable financing | ||
| Accounts paid in advance | 29,544,788.35 | 70,005,681.50 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 31,027,754.36 | 32,321,826.94 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Buying back the sale of financial assets | ||
| Inventories | 100,245,529.06 | 124,686,443.61 |
| Contractual assets | 7,229,600.00 | |
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 917,288,244.54 | 445,236,731.33 |
| Total current assets | 1,935,230,241.40 | 1,623,611,118.54 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 8,893,408.86 | 14,619,203.03 |
| Investment in other equity instrument | 81,615,000.00 | 60,615,000.00 |
| Other non-current financial assets | ||
| Investment real estate | 2,205,189.40 | 2,401,327.00 |
| Fixed assets | 925,745,208.55 | 1,381,675,872.68 |
| Construction in progress | 42,782,712.98 | 66,474,630.23 |
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets |
| Intangible assets | 21,125,610.24 | 43,602,166.44 |
| Expense on Research and Development | ||
| Goodwill | ||
| Long-term expenses to be apportioned | 1,027,508.94 | 1,174,171.16 |
| Deferred income tax asset | 2,206,049.69 | 2,206,049.69 |
| Other non-current asset | 22,882,181.78 | |
| Total non-current asset | 1,085,600,688.66 | 1,595,650,602.01 |
| Total assets | 3,020,830,930.06 | 3,219,261,720.55 |
| Current liabilities: | ||
| Short-term loans | 675,528,858.48 | 881,075,378.48 |
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | ||
| Derivative financial liability | ||
| Note payable | 30,467,345.48 | |
| Account payable | 9,306,303.26 | 19,871,102.41 |
| Accounts received in advance | ||
| Contractual liability | ||
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 69,426,903.97 | 55,208,432.53 |
| Taxes payable | 7,626,258.26 | 21,769,273.77 |
| Other account payable | 27,020,944.95 | 43,691,472.06 |
| Including: Interest payable | ||
| Dividend payable | ||
| Commission charge and commission payable | ||
| Reinsurance payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | ||
| Total current liabilities | 819,376,614.40 | 1,021,615,659.25 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | ||
| Long-term wages payable |
| Accrual liability | 19,923,508.28 | 26,646,056.28 |
| Deferred income | 93,780,657.93 | 108,507,683.52 |
| Deferred income tax liabilities | ||
| Other non-current liabilities | 7,627.86 | |
| Total non-current liabilities | 113,711,794.07 | 135,153,739.80 |
| Total liabilities | 933,088,408.47 | 1,156,769,399.05 |
| Owner’s equity: | ||
| Share capital | 602,762,596.00 | 602,762,596.00 |
| Other equity instrument | ||
| Including: Preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 362,770,922.10 | 362,770,922.10 |
| Less: Inventory shares | ||
| Other comprehensive income | -2,500,000.00 | -2,500,000.00 |
| Reasonable reserve | ||
| Surplus public reserve | 332,908,397.60 | 332,908,397.60 |
| Provision of general risk | ||
| Retained profit | 758,799,931.94 | 706,830,892.54 |
| Total owner’ s equity attributable to parent company | 2,054,741,847.64 | 2,002,772,808.24 |
| Minority interests | 33,000,673.95 | 59,719,513.26 |
| Total owner’ s equity | 2,087,742,521.59 | 2,062,492,321.50 |
| Total liabilities and owner’ s equity | 3,020,830,930.06 | 3,219,261,720.55 |
| Item | December 31, 2020 | December 31, 2019 |
| Current assets: | ||
| Monetary funds | 656,244,294.18 | 632,948,706.11 |
| Trading financial assets | ||
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | 24,673,115.32 | 31,824,693.69 |
| Receivable financing | ||
| Accounts paid in advance | 25,560,315.87 | 46,152,700.57 |
| Other account receivable | 598,044,417.89 | 873,861,071.55 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Inventories | 91,867,492.38 | 101,728,367.43 |
| Contractual assets | ||
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | 910,645,154.56 | 438,613,774.49 |
| Total current assets | 2,307,034,790.20 | 2,125,129,313.84 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investments | 250,191,165.00 | 303,341,165.00 |
| Investment in other equity instrument | 60,615,000.00 | 60,615,000.00 |
| Other non-current financial assets | ||
| Investment real estate | ||
| Fixed assets | 312,649,354.95 | 321,395,526.04 |
| Construction in progress | 1,073,964.84 | 1,949,450.23 |
| Productive biological assets | ||
| Oil and natural gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 332,241.43 | 404,104.06 |
| Research and development costs | ||
| Goodwill | ||
| Long-term deferred expenses | 734,374.41 | 790,841.39 |
| Deferred income tax assets | ||
| Other non-current assets | ||
| Total non-current assets | 625,596,100.63 | 688,496,086.72 |
| Total assets | 2,932,630,890.83 | 2,813,625,400.56 |
| Current liabilities | ||
| Short-term borrowings | 675,528,858.48 | 580,640,114.59 |
| Trading financial liability | ||
| Derivative financial liability | ||
| Notes payable | 30,467,345.48 | |
| Account payable | 998,036.56 | 864,016.74 |
| Accounts received in advance | ||
| Contractual liability | ||
| Wage payable | 53,405,473.63 | 33,840,544.53 |
| Taxes payable | 1,752,749.94 | 718,630.17 |
| Other accounts payable | 204,960,979.45 | 203,332,331.14 |
| Including: Interest payable | ||
| Dividend payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | ||
| Total current liabilities | 967,113,443.54 | 819,395,637.17 |
| Non-current liabilities: | ||
| Long-term loans |
| Bonds payable | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | ||
| Long term employee compensation payable | ||
| Accrued liabilities | ||
| Deferred income | 54,805,440.92 | 58,261,356.20 |
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 54,805,440.92 | 58,261,356.20 |
| Total liabilities | 1,021,918,884.46 | 877,656,993.37 |
| Owners’ equity: | ||
| Share capital | 602,762,596.00 | 602,762,596.00 |
| Other equity instrument | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Capital public reserve | 289,963,039.70 | 289,963,039.70 |
| Less: Inventory shares | ||
| Other comprehensive income | ||
| Special reserve | ||
| Surplus reserve | 332,908,397.60 | 332,908,397.60 |
| Retained profit | 685,077,973.07 | 710,334,373.89 |
| Total owner’s equity | 1,910,712,006.37 | 1,935,968,407.19 |
| Total liabilities and owner’s equity | 2,932,630,890.83 | 2,813,625,400.56 |
| Item | 2020 | 2019 |
| I. Total operating income | 985,253,831.58 | 1,222,577,954.53 |
| Including: Operating income | 985,253,831.58 | 1,222,577,954.53 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 928,092,033.49 | 1,207,009,412.33 |
| Including: Operating cost | 794,523,810.39 | 1,061,916,713.85 |
| Interest expense | ||
| Commission charge and commission expense | ||
| Cash surrender value | ||
| Net amount of expense of compensation | ||
| Net amount of withdrawal of insurance contract reserve | ||
| Bonus expense of guarantee slip |
| Reinsurance expense | ||
| Tax and extras | 8,545,858.05 | 7,640,784.83 |
| Sales expense | 4,979,915.34 | 5,599,305.43 |
| Administrative expense | 111,618,225.09 | 109,541,900.18 |
| R&D expense | 8,490,882.58 | |
| Financial expense | -66,657.96 | 22,310,708.04 |
| Including: Interest expenses | 32,014,803.26 | 49,212,452.58 |
| Interest income | 32,660,554.45 | 26,884,777.55 |
| Add: other income | 22,711,318.05 | 10,137,838.38 |
| Investment income (Loss is listed with “-”) | 27,809,087.38 | -1,429,841.92 |
| Including: Investment income on affiliated company and joint venture | -5,725,794.17 | -1,429,841.92 |
| The termination of income recognition for financial assets measured by amortized cost(Loss is listed with “-”) | ||
| Exchange income (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Income from change of fair value (Loss is listed with “-”) | ||
| Loss of credit impairment (Loss is listed with “-”) | -556,572.76 | |
| Losses of devaluation of asset (Loss is listed with “-”) | -43,718,679.38 | |
| Income from assets disposal (Loss is listed with “-”) | -1,109,128.91 | -279,099.94 |
| III. Operating profit (Loss is listed with “-”) | 62,854,395.23 | 23,440,865.96 |
| Add: Non-operating income | 6,585,316.78 | 5,601,216.93 |
| Less: Non-operating expense | 153,719.62 | 270,348.79 |
| IV. Total profit (Loss is listed with “-”) | 69,285,992.39 | 28,771,734.10 |
| Less: Income tax expense | 1,361,203.90 | 3,078,791.48 |
| V. Net profit (Net loss is listed with “-”) | 67,924,788.49 | 25,692,942.62 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with ‘-”) | 67,924,788.49 | 25,692,942.62 |
| 2.termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to owner’s of parent company | 64,024,291.32 | 24,900,956.73 |
| 2.Minority shareholders’ gains and losses | 3,900,497.17 | 791,985.89 |
| VI. Net after-tax of other comprehensive income | 2,500,000.00 | |
| Net after-tax of other comprehensive income attributable to owners of parent company | 2,500,000.00 | |
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | 2,500,000.00 |
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | 2,500,000.00 | |
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | 67,924,788.49 | 28,192,942.62 |
| Total comprehensive income attributable to owners of parent Company | 64,024,291.32 | 27,400,956.73 |
| Total comprehensive income attributable to minority shareholders | 3,900,497.17 | 791,985.89 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | 0.1062 | 0.0413 |
| (ii) Diluted earnings per share | 0.1062 | 0.0413 |
| Item | 2020 | 2019 |
| I. Operating income | 375,980,848.55 | 406,004,521.28 |
| Less: Operating cost | 350,765,440.51 | 388,210,502.44 |
| Taxes and surcharge | 1,869,505.05 | 2,361,313.49 |
| Sales expenses | ||
| Administration expenses | 61,463,793.70 | 54,248,280.07 |
| R&D expenses | ||
| Financial expenses | -33,786,954.71 | -30,081,146.05 |
| Including: interest expenses | 28,907,352.91 | 39,534,771.43 |
| Interest income | 62,595,082.66 | 69,680,898.66 |
| Add: other income | 14,052,451.52 | 7,437,748.94 |
| Investment income (Loss is listed with “-”) | -14,432,400.00 | |
| Including: Investment income on affiliated Company and joint venture | ||
| The termination of income recognition for financial assets measured by amortized cost (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Changing income of fair value (Loss is listed with “-”) | ||
| Loss of credit impairment (Loss is listed with “-”) | ||
| Losses of devaluation of asset (Loss is listed with “-”) | -7,399,234.51 | |
| Income on disposal of assets (Loss is listed with “-”) | -1,085,739.91 | -231,973.37 |
| II. Operating profit (Loss is listed with “-”) | -13,195,858.90 | -1,528,653.10 |
| Add: Non-operating income | - | 46,869.52 |
| Less: Non-operating expense | 5,290.00 | 12,018.03 |
| III. Total Profit (Loss is listed with “-”) | -13,201,148.90 | -1,493,801.61 |
| Less: Income tax | -2,246,824.86 | |
| IV. Net profit (Net loss is listed with “-”) | -13,201,148.90 | 753,023.25 |
| (i)continuous operating net profit (net loss listed with ‘-”) | -13,201,148.90 | 753,023.25 |
| (ii) termination of net profit (net loss listed with ‘-”) | ||
| V. Net after-tax of other comprehensive income | ||
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (II) Other comprehensive income items which will be reclassified |
| subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| VI. Total comprehensive income | -13,201,148.90 | 753,023.25 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | ||
| (ii) Diluted earnings per share |
| Item | 2020 | 2019 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 1,108,562,507.27 | 1,331,274,801.35 |
| 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, commission charge and commission | ||
| Net increase of capital borrowed | ||
| Net increase of returned business capital | ||
| Net cash received by agents in sale and purchase of securities | ||
| Write-back of tax received | 1,601,602.02 | 3,984,902.00 |
| Other cash received concerning operating activities | 45,950,570.01 | 78,737,812.66 |
| Subtotal of cash inflow arising from | 1,156,114,679.30 | 1,413,997,516.01 |
| operating activities | ||
| Cash paid for purchasing commodities and receiving labor service | 631,546,077.17 | 968,845,362.61 |
| Net increase of customer loans and advances | ||
| Net increase of deposits in central bank and interbank | ||
| Cash paid for original insurance contract compensation | ||
| Net increase of capital lent | ||
| Cash paid for interest, commission charge and commission | ||
| Cash paid for bonus of guarantee slip | ||
| Cash paid to/for staff and workers | 144,256,547.88 | 144,365,094.41 |
| Taxes paid | 61,168,879.09 | 40,161,219.78 |
| Other cash paid concerning operating activities | 58,417,766.14 | 57,681,930.60 |
| Subtotal of cash outflow arising from operating activities | 895,389,270.28 | 1,211,053,607.40 |
| Net cash flows arising from operating activities | 260,725,409.02 | 202,943,908.61 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 32,000,000.00 | |
| Cash received from investment income | 6,273.97 | |
| Net cash received from disposal of fixed, intangible and other long-term assets | 540.00 | 1,990,145.00 |
| Net cash received from disposal of subsidiaries and other units | 32,412,836.98 | |
| Other cash received concerning investing activities | 7,907,964.80 | 1,489,600.00 |
| Subtotal of cash inflow from investing activities | 40,321,341.78 | 35,486,018.97 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 18,670,897.05 | 75,242,132.78 |
| Cash paid for investment | 510,190,094.90 | 118,000,000.00 |
| Net increase of mortgaged loans | ||
| Net cash received from subsidiaries and other units obtained | ||
| Other cash paid concerning investing activities | ||
| Subtotal of cash outflow from investing activities | 528,860,991.95 | 193,242,132.78 |
| Net cash flows arising from investing activities | -488,539,650.17 | -157,756,113.81 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | 85,632.79 | |
| Including: Cash received from |
| absorbing minority shareholders’ investment by subsidiaries | ||
| Cash received from loans | 1,148,033,285.00 | 1,460,000,000.00 |
| Other cash received concerning financing activities | 170,000,000.00 | 5,170,000.00 |
| Subtotal of cash inflow from financing activities | 1,318,118,917.79 | 1,465,170,000.00 |
| Cash paid for settling debts | 1,056,000,000.00 | 1,605,940,000.00 |
| Cash paid for dividend and profit distributing or interest paying | 39,905,513.17 | 47,992,661.32 |
| Including: Dividend and profit of minority shareholder paid by subsidiaries | ||
| Other cash paid concerning financing activities | 887,962.40 | |
| Subtotal of cash outflow from financing activities | 1,096,793,475.57 | 1,653,932,661.32 |
| Net cash flows arising from financing activities | 221,325,442.22 | -188,762,661.32 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -399,929.82 | 108,255.78 |
| V. Net increase of cash and cash equivalents | -6,888,728.75 | -143,466,610.74 |
| Add: Balance of cash and cash equivalents at the period -begin | 771,490,000.96 | 914,956,611.70 |
| VI. Balance of cash and cash equivalents at the period -end | 764,601,272.21 | 771,490,000.96 |
| Item | 2020 | 2019 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 533,744,518.18 | 563,020,587.66 |
| Write-back of tax received | 312,882.87 | |
| Other cash received concerning operating activities | 624,995,145.52 | 72,985,064.74 |
| Subtotal of cash inflow arising from operating activities | 1,159,052,546.57 | 636,005,652.40 |
| Cash paid for purchasing commodities and receiving labor service | 283,488,305.67 | 395,885,100.64 |
| Cash paid to/for staff and workers | 95,218,999.45 | 90,154,340.11 |
| Taxes paid | 2,899,621.27 | 11,935,461.99 |
| Other cash paid concerning operating activities | 357,365,024.96 | 49,268,827.60 |
| Subtotal of cash outflow arising from operating activities | 738,971,951.35 | 547,243,730.34 |
| Net cash flows arising from operating activities | 420,080,595.22 | 88,761,922.06 |
| II. Cash flows arising from investing |
| activities: | ||
| Cash received from recovering investment | 32,000,000.00 | |
| Cash received from investment income | 6,273.97 | |
| Net cash received from disposal of fixed, intangible and other long-term assets | 1,795,100.00 | |
| Net cash received from disposal of subsidiaries and other units | 59,990,000.00 | |
| Other cash received concerning investing activities | 6,763,164.80 | 488,010,509.85 |
| Subtotal of cash inflow from investing activities | 66,753,164.80 | 521,811,883.82 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 9,391,182.84 | 51,869,922.10 |
| Cash paid for investment | 489,190,094.90 | 118,000,000.00 |
| Net cash received from subsidiaries and other units obtained | 21,272,400.00 | |
| Other cash paid concerning investing activities | 275,000,000.00 | |
| Subtotal of cash outflow from investing activities | 519,853,677.74 | 444,869,922.10 |
| Net cash flows arising from investing activities | -453,100,512.94 | 76,941,961.72 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | ||
| Cash received from loans | 848,033,285.00 | 1,160,000,000.00 |
| Other cash received concerning financing activities | 25,000,000.00 | |
| Subtotal of cash inflow from financing activities | 848,033,285.00 | 1,185,000,000.00 |
| Cash paid for settling debts | 756,000,000.00 | 1,440,000,000.00 |
| Cash paid for dividend and profit distributing or interest paying | 34,827,027.04 | 36,757,499.51 |
| Other cash paid concerning financing activities | 887,962.40 | 7,039,888.75 |
| Subtotal of cash outflow from financing activities | 791,714,989.44 | 1,483,797,388.26 |
| Net cash flows arising from financing activities | 56,318,295.56 | -298,797,388.26 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -2,789.77 | 747.58 |
| V. Net increase of cash and cash equivalents | 23,295,588.07 | -133,092,756.90 |
| Add: Balance of cash and cash equivalents at the period -begin | 632,948,706.11 | 766,041,463.01 |
| VI. Balance of cash and cash equivalents at the period -end | 656,244,294.18 | 632,948,706.11 |
7. Statement of Changes in Owners’ Equity (Consolidated)
This Period
In RMB
| Item | 2020 | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. Balance at the end of the last year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 706,830,892.54 | 2,002,772,808.24 | 59,719,513.26 | 2,062,492,321.50 | |||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. Balance at the end of the previous year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 706,830,892.54 | 2,002,772,808.24 | 59,719,513.26 | 2,062,492,321.50 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | 51,969,039.40 | 51,969,039.40 | -26,718,839.31 | 25,250,200.09 | |||||||||||
| (i) Total comprehensive income | 64,024,291.32 | 64,024,291.32 | 3,900,497.17 | 67,924,788.49 | |||||||||||
| (ii) Owners’ devoted and decreased capital | 0.00 | -30,619,336.48 | -30,619,336.48 | ||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital | |||||||||||||||
| invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | -30,619,336.48 | -30,619,336.48 | |||||||||||||
| (III) Profit distribution | -12,055,251.92 | -12,055,251.92 | -12,055,251.92 | ||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | -12,055,251.92 | -12,055,251.92 | -12,055,251.92 | ||||||||||||
| 4. Other | |||||||||||||||
| (IV) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | |||||||||||||||
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4．Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5．Carry-over retained earnings from other |
| comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (V) Reasonable reserve | |||||||||||||||
| 1. Withdrawal in the report period | |||||||||||||||
| 2. Usage in the report period | |||||||||||||||
| (VI)Others | |||||||||||||||
| IV. Balance at the end of the report period | 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 |
| Item | 2019 | ||||||||||||||
| Owners’ equity attributable to the parent Company | Minority interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instrument | Capital reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Provision of general risk | Retained profit | Other | Subtotal | |||||
| Preferred stock | Perpetual capital securities | Other | |||||||||||||
| I. Balance at the end of the last year | 602,762,596.00 | 362,770,922.10 | 332,908,397.60 | 679,429,935.81 | 1,977,871,851.51 | 58,927,527.37 | 2,036,799,378.88 | ||||||||
| Add: Changes of accounting policy | -2,500,000.00 | 2,500,000.00 | |||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. Balance at the end of the previous year | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 681,929,935.81 | 1,977,871,851.51 | 58,927,527.37 | 2,036,799,378.88 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with | 24,900,956.73 | 24,900,956.73 | 791,985.89 | 25,692,942.62 | |||||||||||
| “-”) | |||||||||||||||
| (i) Total comprehensive income | 24,900,956.73 | 24,900,956.73 | 791,985.89 | 25,692,942.62 | |||||||||||
| (ii) Owners’ devoted and decreased capital | |||||||||||||||
| 1.Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | |||||||||||||||
| 4. Other | |||||||||||||||
| (III) Profit distribution | |||||||||||||||
| 1. Withdrawal of surplus reserves | |||||||||||||||
| 2. Withdrawal of general risk provisions | |||||||||||||||
| 3. Distribution for owners (or shareholders) | |||||||||||||||
| 4. Other | |||||||||||||||
| (IV) Carrying forward internal owners’ equity | |||||||||||||||
| 1. Capital reserves conversed to capital (share capital) | |||||||||||||||
| 2. Surplus reserves conversed to capital (share capital) |
| 3. Remedying loss with surplus reserve | |||||||||||||||
| 4．Carry-over retained earnings from the defined benefit plans | |||||||||||||||
| 5．Carry-over retained earnings from other comprehensive income | |||||||||||||||
| 6. Other | |||||||||||||||
| (V) Reasonable reserve | |||||||||||||||
| 1. Withdrawal in the report period | |||||||||||||||
| 2. Usage in the report period | |||||||||||||||
| (VI)Others | |||||||||||||||
| IV. Balance at the end of the report period | 602,762,596.00 | 362,770,922.10 | -2,500,000.00 | 332,908,397.60 | 706,830,892.54 | 2,002,772,808.24 | 59,719,513.26 | 2,062,492,321.50 |
| Item | 2020 | |||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. Balance at the end of the last year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 710,334,373.89 | 1,935,968,407.19 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. Balance at the end of the previous year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 710,334,373.89 | 1,935,968,407.19 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | -25,256,400.82 | -25,256,400.82 | ||||||||||
| (i) Total comprehensive income | -13,201,148.90 | -13,201,148.90 | ||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (III) Profit distribution | -12,055,251.92 | -12,055,251.92 | ||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | -12,055,251.92 | -12,055,251.92 | ||||||||||
| 3. Other | ||||||||||||
| (IV) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying |
| loss with surplus reserve | ||||||||||||
| 4．Carry-over retained earnings from the defined benefit plans | ||||||||||||
| 5．Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (V) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period | ||||||||||||
| (VI)Others | ||||||||||||
| IV. Balance at the end of the report period | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 685,077,973.07 | 1,910,712,006.37 |
| Item | 2019 | |||||||||||
| Share capital | Other equity instrument | Capital public reserve | Less: Inventory shares | Other comprehensive income | Reasonable reserve | Surplus reserve | Retained profit | Other | Total owners’ equity | |||
| Preferred stock | Perpetual capital securities | Other | ||||||||||
| I. Balance at the end of the last year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 709,581,350.64 | 1,935,215,383.94 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. Balance at the end of the previous year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 709,581,350.64 | 1,935,215,383.94 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with | 753,023.25 | 753,023.25 | ||||||||||
| “-”) | ||||||||||||
| (i) Total comprehensive income | 753,023.25 | 753,023.25 | ||||||||||
| (ii) Owners’ devoted and decreased capital | ||||||||||||
| 1.Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by holders of other equity instruments | ||||||||||||
| 3. Amount reckoned into owners equity with share-based payment | ||||||||||||
| 4. Other | ||||||||||||
| (III) Profit distribution | ||||||||||||
| 1. Withdrawal of surplus reserves | ||||||||||||
| 2. Distribution for owners (or shareholders) | ||||||||||||
| 3. Other | ||||||||||||
| (IV) Carrying forward internal owners’ equity | ||||||||||||
| 1. Capital reserves conversed to capital (share capital) | ||||||||||||
| 2. Surplus reserves conversed to capital (share capital) | ||||||||||||
| 3. Remedying loss with surplus reserve | ||||||||||||
| 4．Carry-over |
| retained earnings from the defined benefit plans | ||||||||||||
| 5．Carry-over retained earnings from other comprehensive income | ||||||||||||
| 6. Other | ||||||||||||
| (V) Reasonable reserve | ||||||||||||
| 1. Withdrawal in the report period | ||||||||||||
| 2. Usage in the report period | ||||||||||||
| (VI)Others | ||||||||||||
| IV. Balance at the end of the report period | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 710,334,373.89 | 1,935,968,407.19 |
Shenzhen Nanshan Power Co., Ltd.
Notes to financial statement 2020(Unless otherwise stated, the amount of unit is RMB/CNY)
I. Company Profile
(1) Profile
Shenzhen Nanshan Power Co., Ltd (hereinafter, the “Company”) was reorganized to be a joint-stock enterprise from a foreigninvestment enterprise on 25 November 1993, upon the approval of General Office of Shenzhen Municipal Government withDocument Shen Fu Ban Fu [1993] No.897.
After approved by Document Shen Zhu Ban Fu [1993] No.179 issued by Shenzhen Securities Regulatory Office, on 3 January 1994,the Company offered 40,000,000 RMB common shares and 37,000,000 domestically listed foreign shares in and out of China. Andthe RMB common shares (A-stock) and domestically listed foreign listed shares (B-stock) were listed in Shenzhen Stock Exchangesuccessively on July 1, 1994 and Nov. 28, 1994.
Headquarter of the Company located on 16/F, 17/F, Han Tang Building, OCT, Nanshan District, Shenzhen City, GuangdongProvince, P.R.C.
The financial statement has approved for report by the Board on 24 March 2021.
(2) Scope of financial statement
(i) There are 9 subsidiaries included in the consolidate financial statement, including:
| Subsidiary | Share holding ratio % | Note |
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd.（“Zhongshan Electric Power”） | 80.00 | |
| Shenzhen Shennandian Turbine Engineering Technology Co., Ltd.（“Engineering Company”） | 100.00 | |
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd.（“Environment Protection Company”） | 100.00 | |
| Shenzhen Server Petrochemical Supplying Co., Ltd（“Shenzhen Server”） | 50.00 | |
| Shenzhen New Power Industrial Co., Ltd.（“New Power”） | 100.00 | |
| Shen Nan Energy (Singapore) Co., Ltd.（“Singapore Company”） | 100.00 | |
| Hong Kong Syndisome Co., Ltd.（“Syndisome”） | 100.00 | |
| Zhongshan Shen Nan Dian Storage Co., Ltd.（“Shen Storage”） | 80.00 | |
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | 99.9643 | New in current period |
(ii)Subsidiaries, special purpose entities, and the operating entities with their control rights formed throughentrusted operations or leases are no longer included in the consolidation scope in the current period.
| Name | Reasons for changes |
| Shen Nan Dian (Dongguan) Weimei Electric Power Co., Ltd | Equity disposal |
The Company takes 12 months of a year as the normal operating cycle, and takes the operating cycle as thestandard for the liquidity division of assets and liabilities.
(4) Book-keeping standard currency
Book-keeping standard of the Company is RMB(CNY)
(5) Accounting treatment on enterprise combine under the same control and under the different controlEnterprise combination under the same control: The assets and liabilities obtained by the combining party in enterprise combinationare measured at the book value of the consolidated financial statements of the ultimate controlling party in accordance with theassets and liabilities of the combined party on the date of combination. The difference between the carrying amount of the net assetsobtained and the carrying amount of the consideration paid for the combination (or the aggregate nominal value of shares issued asconsideration) is charged to the share capital premium in capital reserve. If the share capital premium in capital reserve is notsufficient to absorb the difference, any excess shall be adjusted against retained earnings.
Enterprise combinations not under the same control: The purchaser's assets paid and liabilities incurred or assumed on the date ofpurchase as a consideration of enterprise combination are measured at fair value, and the difference between the fair value and itsbook value is included in the current profit and loss. Where the cost of a business combination exceeds the acquirer’s interest in thefair value of the acquiree’s identifiable net assets, the difference is recognized as goodwill; where the cost of a business combinationless than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, reckoned into current gains/losses afterdouble-check.The directly relevant fees incurred in the merger of enterprises shall be reckon into the current gains/losses whenincurred; the transaction costs of issuing equity securities or debt security for the purpose of enterprisecombination should be reckon into the initial recognition of equity security or debt security.
(6) Preparation methods for consolidated statement
1.Consolidate scope
Scope of the consolidate financial statement is determined on a control basis, including the Company and allsubsidiaries.
2. Consolidate procedures
Based on the financial statements of itself and its subsidiaries, the Company compiles the consolidated financialstatements 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, operatingresults 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 ofthe consolidated financial statements are consistent with the Company. If the accounting policies and accountingperiods adopted by the subsidiaries are inconsistent with the Company, when preparing the consolidated financialstatements, make necessary adjustments according to the accounting policies and accounting periods of theCompany. 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 asubsidiary acquired through a business combination under the same control, its financial statements are adjustedbased on the book value of its assets and liabilities (including the goodwill formed by the ultimate controllingparty'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 incomebelonging to minority shareholders are separately listed under the owner's equity item in the consolidated balancesheet, under the net profit item in the consolidated income statement and under the total comprehensive incomeitem. 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 theminority shareholders' equity.
(1) Increase subsidiaries or businesses
During the reporting period, if a subsidiary or business is added due to a business combination under the samecontrol, adjust the opening balance of the consolidated balance sheet; incorporate the income, expenses, andprofits of the subsidiary or business combination from the beginning of the current period to the end of thereporting period into the consolidated income statement; incorporate the cash flows of the subsidiary or businesscombination from the beginning of the current period to the end of the reporting period into the consolidated cashflow statement, and adjust the relevant items of the comparative statement as if the consolidated reporting entityhad 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, allparties participating in the combination are deemed to have adjusted in their current state when the ultimatecontrolling party commenced control. The equity investment held before the control of the combined party isobtained, the relevant profit or loss and other comprehensive income that have been confirmed between the dateof acquisition of the original equity and the date on which the combining party and the combined party are underthe same control until the combining date, as well as other changes in net assets respectively write down theretained earnings at the beginning of period or the current profits and losses in the comparative statements.
During the reporting period, if a subsidiary or business is added due to a business combination not under thesame 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 periodwill be included in the consolidated income statement; the cash flows of the subsidiary or business from theacquisition 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 theequity of the acquiree held before the purchase date according to the fair value of the equity on the purchase date, and the balancebetween the fair value and its book value is included in the current investment income. If the equity of the acquiree held before thepurchase date involves other comprehensive income under the equity method and other changes in owner's equity other than netprofit 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 othercomprehensive income arising from the re-measurement of the net liabilities or changes in net assets of the defined benefit plan ofthe investee.
(2)Disposal of subsidiaries or businesses
①General treatment method
During the reporting period, when the Company disposes of a subsidiary or business, the income, expenses andprofits of the subsidiary or business from the beginning of the period to the disposal date are included in theconsolidated income statement, while the cash flow of the subsidiary or the business from the beginning of theperiod 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 shouldre-measured based on the fair value at date of control losses. The difference between the net assets of original subsidiary share byproportion held that sustainable calculated since purchased date (or combination date) and sum of consideration obtained by equitydisposal and fair value of remain equity, reckoned into the current investment income of control rights loss. Other comprehensiveincome related to the original subsidiary's equity investment or other changes in owner's equity other than net profit and loss, othercomprehensive income and profit distribution will be converted to current investment income when the control is lost, except forother comprehensive income arising from the remeasurement of the net liabilities or changes in net assets of the defined benefit planof the investee.
If other investors’ capital increases in the subsidiary results in a decline in the Company's shareholding ratio andthus loss of control power, accounting shall be conducted in accordance with the above principles.
② Dispose subsidiary step-by-step
When the Company disposes of equity investment in a subsidiary by a stage-up approach with severaltransactions until the control over the subsidiary is lost, these several transactions related to the disposal of equityinvestment in a subsidiary are accounted for as transactions in a basket when the terms, conditions and economicimpacts of these several transactions meet the following one or more conditions:
i. these transactions are entered into at the same time or after considering their impacts on each other;ii. these transactions as a whole can reach complete business results;iii the occurrence of a transaction depends on at least the occurrence of an other transaction;iv.an individual transaction is not deemed as economic, but is deemed as economic when considered with othertransactions.
When several transactions related to the disposal of equity investment in a subsidiary until the control over the subsidiary is lost fallwithin transactions in a basket, each of which is accounted for as disposal of a subsidiary with a transaction until the control over asubsidiary is lost; however, the different between the amount of disposal prior to the loss of control and the net assets of asubsidiary attributable to the disposal investment shall be recognized as other comprehensive income in consolidated financialstatements 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 equityinvestment in the subsidiary shall be accounted for without losing control. When the control right is lost, theaccounting treatment shall be carried out according to the general treatment method for disposing of thesubsidiary.
(3) Purchase of minority shares in subsidiaries
The difference between the Company's newly acquired long-term equity investment due to the purchase ofminority shares and the net assets share calculated continuously by the subsidiary from the date of purchase (ormerger date) in accordance with the calculation of the newly increased shareholding ratio, adjust the equitypremium in the capital reserve in the consolidated balance sheet, if the equity premium in the capital reserve isinsufficient to offset, adjust the retained earnings.
(4) Partial disposal of equity investment in subsidiaries without losing control
The difference between the disposal cost obtained as a result of partial disposal of long-term equity investment in a subsidiarywithout losing control and the net assets share calculated continuously by the subsidiary from the date of purchase or mergercorresponding to the disposal of the long-term equity investment, adjust the equity premium in the capital reserve in theconsolidated balance sheet, if the equity premium in the capital reserve is insufficient to offset, adjust the retained earnings.
(7) Classification of joint arrangement and accounting treatment
Joint arrangement is divided into joint operation and joint venture.As a joint party of the joint arrangement, it is a joint operation when the Company enjoys assets related to thearrangement 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 theprovisions 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 shareof the Company;
(2) Recognize the obligations assumed solely by the Company, and recognize obligations assumed jointly by the Company inappropriation to the share of the Company;
(3) Recognize revenue from disposal of the share of joint operations of the Company;
(4) Recognize fees solely occurred by Company;
(5) Recognize fees from joint operations in appropriation to the share of the Company.
Accounting policy for the joint venture investment found more in (13) Long-term equity investment under NoteIII.
(8) Determination criteria of cash and cash equivalent
While preparing the cash flow statement, the stock cash and savings available for payment at any time arerecognized as cash. The investments meets the follow four conditions at the same time are recognized as cashequivalent, that is short-term (normally fall due within three months from the date of acquisition) and highlyliquid investments held the Group which are readily convertible into known amounts of cash and which aresubject to insignificant risk of value change.
(9) Foreign currency business and foreign currency statement translation
1.Foreign currency business
Foreign currency business uses the spot exchange rate on the transaction date as the conversion rate to convertforeign currency amounts into RMB for accounting.The balance of foreign currency monetary items at the balance sheet date is converted at the spot exchange rateon the balance sheet date, the resulting exchange difference is included in current profit and loss, except that theexchange difference arising from foreign currency special borrowings related to the acquisition or construction ofassets 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; theowners' 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 spotexchange rate on the transaction date.
When disposing of an overseas operation, the translation difference in the foreign currency financial statements related to theoverseas operation is transferred from the owner's equity item to the disposal of current profit or loss.
(10) Financial instrument
Financial instrument consist of financial assets, financial liability and equity instrument.
1.Classification of financial instrument
Based on the Company's business model for managing financial assets and the contractual cash flowcharacteristics 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 othercomprehensive income and the financial assets measured at fair value and whose changes are included in currentprofit and loss at initial recognition.
Business model to collect the contractual cash flow, and the contractual cash flow is only the payment of theprincipal and the interest based on the outstanding principal amount, is classified as a financial asset measured atamortized cost; business model to collect the contractual cash flow and sell the financial asset, and thecontractual 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 comprehensiveincome (debt instruments); other financial assets other than these are classified as financial assets measured atfair 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 recognitionwhether to designate it as a financial asset (equity instrument) measured at fair value and whose changes areincluded in other comprehensive income.
At the time of initial recognition, financial liabilities are classified into financial liabilities that are measured at fair value and whosechanges 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 measuredat 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 managementand 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 thedesignated situation)
2. Recognition basis and measurement method of financial instruments
(1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include bills receivable, accounts receivable, other receivables,long-term receivables, debt investment, etc., which are initially measured at fair value, and related transactioncosts are included in the initially recognized amount; accounts receivable excluding significant financingcomponents and accounts receivable with financing components not exceeding one year that the Companydecides 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 currentprofit and loss.
When taking back or disposing, the difference between the cost obtained and the book value of the financial asset is included in thecurrent profit and loss.
(2) Financial assets (debt instrument) measured at fair value and whose changes are reckoned into othercomprehensive incomeThe financial assets (debt instrument) measured at fair value and whose changes are reckoned into othercomprehensive income consist of receivable financing and other debt investment and initially measured at fairvalue, relevant transaction fees are included in initial recognized amount. The financial assets are subsequentlymeasured at fair value, and the fair value changes are reckoned into other comprehensive income except for theinterest, impairment loss or gain and exchange gain or loss calculated by actual interest rate method.Upon termination of the recognition, the accumulated gains or losses previously included in other comprehensiveincome 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 incomeThe financial assets (equity instrument) measured at fair value and whose changes are reckoned into othercomprehensive 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 subsequentlymeasured at fair value, and the fair value changes are reckoned into other comprehensive income. The dividendobtained should reckoned into current gains/losses.Upon termination of the recognition, the accumulated gains or losses previously included in other comprehensiveincome shall be transferred out and reckoned into retained earnings.
(4) Financial assets measured at fair value and whose changes are reckoned into current gains/lossesThe financial assets measured at fair value and whose changes are reckoned into current gains/losses consist oftrading financial assets, derivative financial assets and other non-current financial assets etc. and initiallymeasured at fair value, relevant transaction fees are included in current gains/losses. The financial assets aresubsequently measured at fair value, and the fair value changes are reckoned into current gains/losses.
(5) Financial liability measured at fair value and whose changes are reckoned into current gains/losses
The financial liability measured at fair value and whose changes are reckoned into current gains/losses consist oftrading financial liability and derivative financial liability etc. and initially measured at fair value, relevanttransaction fees are included in current gains/losses. The financial liabilities are subsequently measured at fairvalue, and the fair value changes are reckoned into current gains/losses.Upon termination of the recognition, the difference between its book value and the consideration paid is includedin the current gains/losses.
(6) Financial liability measured at amortized cost
The financial liabilities measured at amortized cost consist of short-term loans, note payable, account payable,other account payable, long-term loans, bond payable and long-term account payable, and initially measured atfair value, relevant transaction fees are included in initial recognized amount.
The interests calculated by effective interest rate method during the holding period is reckoned into currentgains/losses.
Upon termination of the recognition, the difference between consideration paid and the book value of financialliability is reckoned into current gains/losses.
3. Recognition basis and measurement method for transfer of financial assetsWhen the Company transfers financial assets, if almost all risks and rewards of ownership of financial assetshave been transferred to the transferee, derecognize the financial assets; if almost all risks and rewards ofownership of financial assets have been retained, don’t derecognize the financial assets.
When determining whether the transfer of financial assets meets the above conditions for the termination ofrecognition of financial assets, adopt the principle of substance over form. The Company distinguishes thetransfer of financial assets into overall transfers and partial transfers of financial assets. If the overall transfer offinancial assets meets the conditions for derecognition, the difference between the following two amounts isincluded in the current profit and loss:
(1) The book value of the transferred financial assets;
(2) The sum of the consideration received as a result of the transfer and the cumulative amount of changes in thefair value that were directly credited to the owner's equity (the transferred financial asset is the financial assets(debt instrument) measured by fair value and with its variation reckoned into other c comprehensive income andan available-for-sale financial asset).
If partial transfer of financial assets meets the conditions for derecognition, the entire book value of thetransferred financial assets is apportioned between the derecognized parts and non-derecognized parts accordingto their relative fair values, and the difference between the following two amounts is included in the currentprofit and loss:
(1) The book value of the derecognition part;
(2) The sum of the consideration of the derecognition part and the amount corresponding to the derecognition part of the cumulativetotal of changes in fair value that were directly credited to the owner's equity (the transferred financial asset is the financial assets(debt instrument) measured by fair value and with its variation reckoned into other comprehensive income and an available-for-salefinancial asset).If the transfer of financial assets does not meet the conditions for derecognition, the financial assets are continuously recognized,and the consideration received is recognized as a financial liability.
4. Termination recognition of financial liability
Where the current obligation of a financial liability have been discharged in whole or in part, the recognition ofthe financial liability or part thereof shall be terminated; If the Company entered into an agreement with itscreditors to replace its existing financial liabilities with the new financial liability, and the contract terms of thenew financial liabilities and the existing financial liabilities are substantially different, the existing financialliabilities shall be terminated for recognition and the new ones shall be recognized at the same time. As forsubstantive changes made to the contract terms (in whole or in part) of the existing financial liabilities, theexisting financial liabilities (or part of it) will be terminated for recognition, and the financial liabilities after termrevision 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 thefinancial liability derecognized and the consideration paid (including the non-cash assets transferred out or thenew 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 thederecognition part. The difference between the book value allocated to the derecognition part and theconsideration paid (including the transferred non-cash assets or assumed new financial liabilities) is included inthe 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. Forfinancial 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 andother information support, chooses the input values consistent with the characteristics of assets or liabilities considered by marketparticipants in the transactions of related assets or liabilities, and prioritizes the relevant observable input values. The Company usesunobservable 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 assetsThe 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 combinedway and financial assets (debt instruments) measured at fair value and whose changes are included in othercomprehensive income. The measurement of expected credit losses depends on whether a significant increase incredit 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 Companyshall measure its loss provision at an amount equivalent to the expected credit loss throughout the life of thefinancial instrument. If the credit risk of the financial instrument has not increased significantly since initialrecognition, the Company shall measure its loss provision at an amount equivalent to the expected credit loss ofthe financial instrument in the next 12 months. The increased or reversed amount of the loss provision thusformed shall be included in the current profit and loss as impairment losses or gains.
Usually, the Company considers that the credit risk of the financial instrument has increased significantly when itis overdue for more than 30 days, unless there is conclusive evidence that the credit risk of the financialinstrument 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 thecredit 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 asignificant financing component, the Company always measures its loss provisions at an amount equivalent tothe expected credit loss throughout the duration.
For lease receivables and long-term receivables formed by the company through sales of goods or rendering ofservices, the Company always chooses to measure the loss reserves at an amount equivalent to expected creditlosses during the entire duration.
For notes receivable, accounts receivable, other receivables, financing of accounts receivable and long-term receivables withobjective 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 toassess expected credit losses at a reasonable cost at the level of individual instruments, the Company refers to historical credit lossexperience, 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 onthe characteristics of credit risk, and calculates the expected credit loss on the basis of the portfolio. Details as follows:
(1)Note receivables
| Name of the combination | Method of measuring credit loss |
| Bank acceptance bill of state-owned banks | For notes receivable classified as bank acceptance portfolio, the management appraises that such payments have low credit risks and low expected credit loss rate, and should make no provision for impairment. |
| Name of the combination | Method of measuring credit loss |
| Electricity transaction receivable | Regarding accounts 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 economic conditions, the management evaluates that such 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. |
| Receivable for engineering operation and maintenance | |
| Environmental protection labor receivables |
| Name of the combination | Method of measuring credit loss |
| Combination of the export tax rebate, VAT rebate upon levy | The company classifies the payments, tax refunds receivable, and collection and withholding payments from subsidiaries within the scope of accounts receivable consolidation that have no significant recovery risks into other portfolios, and no bad debt provision is made. |
| Combination of the deposit margin reserve | |
| Other vary receivable and temporary payment in addition to the above combination |
| Name of the combination | Method of measuring credit loss |
| Bank acceptance bill of the bank with lower credit risk | With reference to historical credit loss experience, combined with current conditions and forecasts of future economic conditions, the expected credit loss is calculated through the default risk exposure and the expected credit loss rate of the entire duration. |
| Trade acceptance |
1. Categories of inventory
Inventory consists of fuels and 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 inventoriesFor inventory of products that are directly used for sale, such as finished products, inventory products, andmaterials for sale, in the normal production and operation process, the amount after subtracting the estimatedselling expenses and relevant taxes from the estimated selling price shall be used to determine the net realizablevalue. For inventory of materials that need to be processed, in the normal production and operation process, theamount after subtracting the estimated cost, estimated sales expense, and related taxes at the time of completionfrom the estimated selling price of the finished product shall be used to determine the net realizable value. Thenet realizable value of the inventory held for the execution of the sales contract or labor service contract iscalculated on the basis of the contract price. If the quantity of the inventory held is more than the quantityordered by the sales contract, the net realizable value of the excess inventory is calculated based on the generalsales price.
At the end of the period, provision for inventory depreciation is made based on a single inventory item; but for inventory with alarge quantity and low unit price, provision for inventory depreciation is made based on the inventory category. For inventories thatare related to the product series produced and sold in the same region, have the same or similar end-use or purpose, and are difficultto measure separately from other items, the inventory depreciation reserve shall be accrued in a consolidated manner.
4. Inventory system
Perpetual inventory system required
5. Amortization method of low-value consumables and packaging
(1) Low-value consumables-one pass method
(2) Packaging- one pass method
(12) Contract assets
If the Company has transferred goods to customers and has the right to receive consideration, and the right depends on factors otherthan the time lapses, it is recognized as contract assets. The Company's unconditional (that is, only depending on the time lapses)right to collect consideration from customers are separately listed as receivables.
The Company's determination method and accounting treatment method for the expected credit loss of contract assets are detailed inNote III/(10) 6. Impairment of financial instruments.
(13) Long-term equity investment
1. Criteria judgement for joint control and significant influence
Joint control is the Company’s contractually agreed sharing of control over an arrangement, which relevant activities of sucharrangement must be decided by unanimously agreement from parties who share control. Where the Company and other jointventures exercise joint control over the investee and enjoy the rights to the net assets of the investee, the investee is a joint ventureof the Company.Significant influence is the right of the Company to participate in the financial and operation decision-making ofan enterprise, but not to control or jointly control the formulation of such policies with other parties. Where theCompany is able to exert significant influence on the investee, the investee shall be a joint venture of theCompany.
2. Determination of initial investment cost
(1) Long-term equity investment resulting from enterprise combination
Enterprise combination under the same control: If the Company pays cash, transfers non-cash assets or assumesdebt, and issues equity securities as the consideration for the merger, the share of the book value of the owner'sequity of the combined party in the consolidated financial statements of the ultimate controlling party on thecombining date shall be used as the initial investment cost of long-term equity investment. If it is possible tocontrol the investee under the same control due to additional investments, etc., the initial investment cost oflong-term equity investment shall be determined based on the share of the book value of the net assets of thecombined party in the consolidated financial statements of the ultimate controlling party on the merger date. Thedifference between the initial investment cost of the long-term equity investment on the merger date and the sumof the book value of the long-term equity investment before the merger plus the book value of the new sharepayment consideration obtained on the merger date adjusts the equity premium. If the equity premium isinsufficient to be offset, the retained earnings shall be offset.
Business combination not under the same control: The Company uses the combination cost determined on thepurchase date as the initial investment cost of the long-term equity investment. If it is possible to exercise controlover an investee that is not under the same control due to additional investments, etc., the sum of the book valueof the original equity investment plus the newly increased investment cost is used as the initial investment costcalculated by the cost method.
(2) Long-term equity investment obtained through other methods
For a long-term equity investment obtained by paying cash, the actually paid purchase price is taken as the initialinvestment cost.
For a long-term equity investment obtained by issuing equity securities, the fair value of the issued equitysecurities 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 orout 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 conclusiveevidence that the fair value of the assets swapped in is more reliable; for non-monetary assets exchange that do not meet the abovepreconditions, the book value of the assets swapped out and the relevant taxes and fees payable are used as the initial investmentcost of the long-term equity investment swapped in.
For a long-term equity investment obtained through debt restructuring, its entry valueis 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 andloss.
3. Follow-up measurement and gain/loss recognition
(1) Long-term equity investment measured at cost
The long-term equity investment in subsidiaries shall be measured at cost. In addition to the actual prices or the announced but yetundistributed cash dividend or profit in consideration valuation, the current investment return is recognized by the announced cashdividend 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 theinitial investment cost is greater than than the share of fair value of the invested entity’s identifiable net assets,the initial investment cost of the long-term equity investment will not be adjusted; if the initial investment cost isless than than the share of fair value of the invested entity’s identifiable net assets, the difference shall reckonedin current gains/losses.
The investment gain and other comprehensive income shall be recognized based on the Company’s share of thenet profits or losses and other comprehensive income made by the investee, respectively. Meanwhile, thecarrying amount of long-term equity investment shall be adjusted. The carrying amount of long-term equityinvestment shall be reduced based on the Group’s share of profit or cash dividend distributed by the investee. Inrespect of the other movement of net profit or loss, other comprehensive income and profit distribution ofinvestee, the carrying value of long-term equity investment shall be adjusted and included in the owners’ equity.
The Company shall recognize its share of the investee’s net profits or losses based on the fair values of the investee’s individualseparately identifiable assets at the time of acquisition, after making appropriate adjustments thereto during the accounting periodand according to the accounting policy of the Company. During the period of holding the investment, the investee prepares theconsolidated financial statements based on the net profit, other comprehensive income, and the amount attributable to the investeein 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 notsufficient to offset, the investment loss shall continue to be recognized within the limit of the book value of long-term equity thatsubstantially constitutes a net investment in the investee, and offset the book value of long-term receivables. Finally, after theabove-mentioned treatment, if the enterprise still bears additional obligations as stipulated in the investment contract or agreement,the accrual liabilities are recognized according to the estimated obligations and included in the current investment loss.
(3) Disposal of long-term equity investment
When disposing of a long-term equity investment, the difference between its book value and the actual purchaseprice 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 basisas the investee directly disposes of related assets or liabilities, and make accounting treatment to the portion thatwas originally included in other comprehensive income according to the corresponding proportion. The owner'sequity recognized as a result of changes in other owner's equity of the investee other than net profit or loss, othercomprehensive 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 changesof 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 equityinvestment, etc., the remaining equity after disposal shall be calculated in accordance with the financialinstrument recognition and measurement standards, and the difference between the fair value and the book valueon the day of losing the joint control or significant influence is included in the current profit and loss. Othercomprehensive income of the original equity investment recognized due to using the equity method foraccounting shall adopt the accounting treatment on the same basis as the investee directly disposes of relatedassets or liabilities when terminating the adoption of equity method for accounting. The owner's equityrecognized as a result of changes in the owner's equity other than net profit or loss, other comprehensive incomeand profit distribution of the investee is transferred to current profit and loss when terminating the adoption ofequity 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 byother investors resulting in a decline in the shareholding ratio of the Company, in preparing separate financial statements, theremaining equity interest which can apply common control or impose significant influence over the investee shall be accountedfor using equity method. Such remaining equity interest shall be treated as accounting for using equity method since it is obtainedand adjustment was made accordingly. For remaining equity interest which cannot apply common control or impose significantinfluence over the investeel, it shall be accounted for using the recognition and measurement standard of financial instruments. Thedifference between its fair value and carrying amount as at the date of losing control shall be included in profit or loss for thecurrent period.
The disposed equity is obtained through business combination due to additional investment and other reasons, when preparingindividual financial statements, if the remaining equity after disposal uses cost method or equity method for accounting, the equityinvestments held before the acquisition date shall be carried forward in proportion to other comprehensive income and other owner'sequity recognized through equity method accounting; For the remaining equity interest after disposal accounted for using therecognition and measurement standard of financial instruments, other comprehensive income and other owners’ equity shall be fullytransferred.
(14) Investment real estate
Investment real estate is defined as the real estate with the purpose to earn rent or capital appreciation or both, including the rentedland use rights and the land use rights which are held and prepared for transfer after appreciation, the rented buildings. (Includingbuildings for lease after self-construction or development activities completed and buildings under construction or development forlease in the future)
Investment real estate of the Company are measured at cost model. The Investment real estate- rental buildingsmeasured at cost model has the same depreciation policy as fixed assets, the land use right for lease is exercisethe amortization policy as intangible assets.
(15) Fixed assets
1. Recognition conditions for the fixed assets
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providingservices, lease or for operation & management, and have more than one fiscal year of service life. Fixed assetsare 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 depreciation method, and the depreciation rate isdetermined according to the fixed asset category, estimated useful life and estimated net residual value rate. If the service life ofeach component of the fixed asset is different or the economic benefits are provided to the enterprise in different ways, differentdepreciation 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 assetsare as follows:
| Category | Depreciation method | Depreciation period (Year) | Residuals rate(%) | Annual depreciation rate (%) |
| Houses and buildings | Straight-line | 20 years | 10 | 4.5 |
| Equipment-fuel machinery sets(Note) | The work quantity method | 10 | ||
| Equipment (fuel machinery sets excluded) | Straight-line | 15-20 years | 10 | 4.5-6 |
| Transportation tools | Straight-line | 5 years | 10 | 18 |
| Other | Straight-line | 5 years | 10 | 18 |
Note: gas turbine generator set is provided with depreciation under workload method, namely to determine the depreciation amountper hour of gas turbine generator set based on equipment value, predicted net remaining value and predicted generation hours.Details are set out as follows:
| Name of the Company | Fixed assets | Depreciation amount (RMB/Hour) |
| The Company | Generating unit 1# | 538.33 |
| Generating unit 3# | 601.20 | |
| New Power | Generating unit 10# | 520.61 |
| Zhongshan Electric Power | Generating unit 1# | 4,246.00 |
| Generating unit 3# | 4,160.83 |
(2) borrowing expenses have incurred;
(3) The acquisition, construction or production activities necessary for the assets to reach the intended usable orsaleable state have begun.
2. Period of capitalization of borrowing expenses
The period of capitalization refers to the period from the point when the capitalization of the borrowing expensesstarts to the point when the capitalization is stopped. The period during which the capitalization of the borrowingexpenses is suspended is not included.When the acquisition, construction or production of assets that meet the capitalization conditions reaches theintended 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 capitalizationconditions are completed separately and can be used independently, the capitalization of the borrowing expensesof 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 solduntil the entirety is completed, the capitalization of borrowing expenses shall be stopped when the entire asset iscompleted.
3. The period of suspension of capitalization
If an abnormal interruption occurs during the acquisition, construction or production of an asset that meets thecapitalization conditions, and the interruption lasts for more than 3 months, the capitalization of borrowingexpenses shall be suspended; if the interruption is the necessary procedure for the acquisition, construction orproduction of assets that meet the capitalization conditions to reach the intended usable state or saleable state, theborrowing expenses shall continue to be capitalized. The borrowing expenses incurred during the interruptionperiod shall be recognized as the current profit and loss, and the borrowing expenses shall continue to becapitalized until the acquisition, construction or production of the asset restarts.
4. Calculation method of capitalization rate and capitalization amount of borrowing expensesFor special loans borrowed for the acquisition, construction or production of assets that meet the capitalizationconditions, the amount after subtracting the interest income obtained by depositing the unused borrowing fundsin the bank or the investment income obtained from temporary investment from the actual borrowing expensesincurred in the current period of the special loans is used to determine the capitalized amount of borrowingexpenses.
For general borrowings used for the acquisition, construction or production of assets that meet the capitalization conditions, theamount of borrowing expenses that should be capitalized for general borrowings is calculated and determined based on theweighted average of the asset expenditures of the accumulated asset expenditure exceeding the part of the special borrowingsmultiplied by the capitalization rate of the general borrowings used. The capitalization rate is calculated and determined based onthe weighted average interest rate of general borrowings.
(18) 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 expendituresincurred to make the assets reach the intended purpose. If the purchase price of intangible assets have a delay inpayment beyond normal credit conditions and is of financing nature, the cost of intangible assets is determinedon 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 isdetermined by the fair value of the waived creditor’s rights and other costs that can be directly attributable to thetax incurred to make the asset reach its intended use, and the difference between the fair value and the book valueof 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-inassets and the swap-out assets can be reliably measured, the entry value of the swap-in intangible assets throughnon-monetary assets exchange is determined on the basis of the fair value of the swap-out assets, unless there isconclusive evidence that the fair value of the swap-in assets is more reliable; for non-monetary asset exchangesthat do not meet the above premises, the book value of the swap-out assets and the relevant taxes and feespayable shall be used as the cost of the swap-in intangible assets, but not recognize the profit and loss.
(2) Follow-up measurement
Analyze and judge the service life of intangible assets when acquiring them.Intangible assets with a limited service life are amortized on a straight-line basis within the period of economicbenefits brought to the enterprise; or the intangible assets shall be regarded as with an uncertain service life if theperiod 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 thestraight-line method for the original value minus the estimated net residual value and the accumulated amount ofprovision for impairment from the time it is available for use. Intangible assets with uncertain service life shallnot be amortized.
At the end of the period, review the useful life and amortization method of intangible assets with a limited usefullife. 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 theirservice lifeTo review the service life of an intangible asset with a uncertain service life, if there is evidence that the period ofeconomic 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 phaseThe company's internal research and development project expenditures are divided into research phaseexpenditures and development phase expenditures.Research phase: it’s the phase of planned investigations and research activities with originality to acquire andunderstand 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 soas to produce new or substantially improved materials, devices, products and other activities before commercialproduction or use.
Specific criteria for expenditure in the development phase to conform to capitalizationExpenditures in the development stage of internal research and development projects are recognized as intangible assets when thefollowing 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 theintangible 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 havethe ability to use or sell the intangible asset;
5. The expenditure attributable to the development stage of the intangible asset can be reliably measured.
(19) Impairment of long-term assets
Long-term equity investments, investment real estate measured by the cost model, fixed assets, construction inprogress, intangible assets with limited service life and other long-term assets that show signs of impairment onthe balance sheet date shall be tested for impairment. If the impairment test result shows that the recoverableamount of an asset is less than its carrying amount, the impairment provision will be made according to thedifference and recognized as an impairment loss. The recoverable amount of an asset is the higher of its fairvalue 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 toestimate the recoverable amount of the individual asset, the Group shall determine the recoverable amount of theasset group to which the asset belongs. The asset group is the smallest group of assets capable of generating cashflows independently.
As for the goodwill, intangible assets with an indefinite useful life and intangible assets beyond workingconditions, 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 businesscombination 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 ofasset groups. The Company allocates the book value of goodwill based on the relative benefits that the relevantasset group or portfolio of asset groups can obtain from the synergies of the business combination, and conductsa 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 ofimpairment for an asset group or portfolio of asset groups related to goodwill, the asset group or portfolio of asset groups that doesnot contain goodwill should be tested first, calculate the recoverable amount, and compare it with the relevant book value toconfirm the corresponding impairment loss. Then conduct an impairment test on the asset group or portfolio of asset groups thatcontains goodwill, and compare the book value of these related asset groups or asset group portfolios (including the book value ofthe allocated goodwill) with the recoverable amount, if the recoverable amount of the relevant asset group or the asset groupportfolio is lower than its book value, the impairment loss of goodwill shall be recognized.
Once the above assets impairment loss is recognized, it will not be carried back in future accounting periods.
(20) Long-term deferred expenses
The Company's long-term deferred expenses refer to the expenses that have been paid, but the benefit period is more than one year(excluding one year). Long-term deferred expenses are amortized in installments according to the benefit period of the expenseitems. If the long-term deferred expense item cannot benefit the future accounting period, all the amortized value of the item thathas not been amortized shall be transferred to the current profit and loss.
(21)Contract liabilities
Contract liabilities refer to the Company's obligation to transfer goods or services to customers for consideration received orreceivable from customers. Contract assets and contract liabilities under the same contract are presented in net amount.
(22) Staff remuneration
1. Accounting treatment of a short-term compensation
During the accounting period when employees provide services to the Company, the Company recognizes theactual short-term compensation as a liability and includes it in the current profit and loss or the cost of relatedassets.
The social insurance premiums and housing provident fund paid by the Company for employees, as well as thelabor union funds and employee education funds drawn in accordance with the regulations, of which thecorresponding employee compensation amount shall be calculated and determined according to the specifiedaccrual basis and accrual ratio during the accounting period when the employees provide services to theCompany.
If employee welfare expenses are non-monetary and can be measured reliably, they shall be measured at fairvalue.
2. Accounting treatment methods for post-employment benefits
(1) Defined contribution plans
The Company pays basic endowment insurance and unemployment insurance for employees in accordance withthe relevant regulations of the local government. During the accounting period when employees provide servicesto the Company, the amount payable is calculated based on the local payment base and proportion, recognized asa 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 paymentsystem (supplementary endowment insurance)/enterprise annuity plan in accordance with the relevant policies ofthe national enterprise annuity system. The Company pays a certain percentage of the total wages of employeesto the local social insurance agency/annuity plan, and the corresponding expenditure is included in the currentprofit 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 whichthe employees provide services according to the formula determined by the expected cumulative welfare unitmethod, 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 valueof the defined benefit plan’s assets is recognized as a defined benefit plan’s net liabilities or net assets. If there isa surplus in the defined benefit plan, the Company shall use the lower of the surplus of the defined benefit planand 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 theend of the annual reporting period in which employees provide services, are discounted based on the marketyield of the national debt matching with the obligation period and currency of the defined benefit plan or thehigh-quality corporate bonds in an active market on the balance sheet date.
The service cost incurred by the defined benefit plan and the net interest of the net liabilities or net assets of thedefined benefit plan are included in the current profit and loss or the related asset cost; the changes in netliabilities or net assets resulting from the remeasurement of defined benefit plans are included in othercomprehensive income, and shall not be transferred back to profit or loss in the subsequent accounting period,and the part that was originally included in other comprehensive income will be carried forward to undistributedprofit 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 thedefined benefit plan and the settlement price determined on the settlement date is used to confirm the settlementgain or loss.
3. Accounting treatment methods for dismissal benefits
When the Company cannot unilaterally withdraw the dismissal benefits provided by the termination of the labor relationship plan orredundancy proposal, or when confirming the costs or expenses related to the reorganization involving the payment of the dismissalbenefits (the earlier of the two), recognize employee compensation liabilities arising from dismissal benefits and include in thecurrent profit and loss.
(23) Accrual liability
1. Recognition criteria
The obligations with contingencies concerned as litigation, debt guarantee and contract in loss are recognized asaccrual liability when the following conditions are met simultaneously:
(1) the liability is the current liability that undertaken by the Company;
(2) the liability has the probability of result in financial benefit outflow; and
(3) the responsibility can be measured reliably for its value.
2. Measurement on vary accrual liability
The Company's accrual liabilities are initially measured based on the best estimate of the expenditure required toperform the relevant current obligations.
When determining the best estimate, the Company comprehensively considers factors such as risks, uncertaintiesand time value of money related to contingencies. If the time value of money has a significant impact, the bestestimate 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 ofvarious results within this range is the same, the best estimate is determined according to the middle value of therange, 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 asingle item, the best estimate shall be determined based on the amount most likely to occur; if the contingencyinvolves multiple items, the best estimate shall be calculated and determined according to various possibleoutcomes 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 thirdparty, the compensation amount shall be separately recognized as an asset when it is basically certain that it can be received, and theconfirmed compensation amount shall not exceed the book value of the accrual liability.
(24) Revenue
Accounting policies applicable from January 1, 2020General principles
The Company recognizes the income when it has fulfilled its performance obligations in the contract, that is, when the customer hasobtained control of the relevant goods or services. The performance obligation refers to the commitment in the contract that theGroup transfers clearly distinguishable goods or services to the customer. Obtaining control over related goods or services meansbeing 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, theCompany recognizes revenue within a period of time according to the performance of the contract: (1) The customer obtains andconsumes 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 producedduring the performance of the Company have irreplaceable uses, and the Company has the right to collect payment for theaccumulated performance part that has been completed so far during the entire contract period. Otherwise, the Company recognizesrevenue at the point when the customer obtains control of the relevant goods or services.Variable considerationSome of the Company’s contracts with customers include sales rebates, quantity discounts, commercial discounts, performancebonuses and claims, which forms variable consideration. The Company determines the best estimate of the variable considerationbased on the expected value or the most likely amount, but the transaction price that includes the variable consideration does notexceed the amount that the accumulated recognized revenue is most unlikely to be materially reversed when the relevant uncertaintyis eliminated.
Significant financing componentIf there is a significant financing component in the contract, the Company shall determine the transaction price based on the amountpayable in cash when the customer assumes control of the goods or services. The difference between the transaction price and thecontract 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 thepayment within one year, the significant financing component in the contract will not be considered.
Non-cash considerationIf the customer pays a non-cash consideration, the Company shall determine the transaction price based on the fair value of thenon-cash consideration. If the fair value of the non-cash consideration cannot be reasonably estimated, the Company indirectlydetermines 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 variableconsideration for accounting treatment in accordance with relevant regulations.
Consideration payable to customersFor the consideration payable to customers, the Company offsets the transaction price from the consideration payable to thecustomer, and offsets the current revenue at the time point of the later when the relevant revenue is recognized and the promisedpayment of the customer consideration, unless the consideration payable is to obtain other clearly distinguished products from thecustomer.
Sales with sales return clausesFor sales with a sales return clause, when the customer obtains control of the relevant product, our company recognizes the revenuein 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 amountexpected to be refunded due to sales returns. At the same time, according to the expected book value of the returned goods at thetime of transfer, the balance after deducting the estimated cost of recovering the goods (including the value impairment of the
returned goods) is recognized as an asset, and the net carry-over cost of the above asset cost is deducted according to the book valueof the transferred commodity at the time of transfer. On each balance sheet date, re-estimate the future sales return situation, and ifthere is any change, it will be treated as a change in accounting estimates.
Sales with quality assurance clausesFor sales with quality assurance clauses, if the quality assurance provides a separate service in addition to ensuring that the goods orservices 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 agentThe Company judges whether the Company’s identity is the principal responsible person or an agent at the time of the transactionbased on whether it has control over the product or service before the transfer of the product or service to the customer. If theCompany is able to control the products or services before transferring the products or services to the customers, the Company isthe 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 havethe right to collect, the amount is determined according to the net amount of the total consideration received or receivable afterdeducting the price payable to other related parties, or according to the established commission amount or ratio.
Sales with additional purchase options for customersFor sales with additional purchase options for customers, the Company assesses whether the option provides customers with amajor right. If an enterprise provides a major right, it shall be a single performance obligation, and the transaction price shall beallocated to the performance obligation in accordance with the relevant provisions of the standards. When the customer exercisesthe purchase option in the future to obtain control of the relevant commodity, or when the option lapses, the corresponding incomeshall be recognized. If the stand-alone selling price of the customer's additional purchase option cannot be directly observed, theCompany shall reasonably estimate after considering all relevant information such as the difference between the discounts that thecustomer 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 theoption to purchase the commodity reflects the stand-alone selling price of these commodities, and it should not be considered thatthe company has provided the customer with a major right.
Grant intellectual property licenses to customersIf an intellectual property license is granted to a customer, the Company assesses whether the intellectual property licenseconstitutes a single performance obligation in accordance with the relevant provisions of the standards, and if it constitutes a singleperformance obligation, it shall further determine whether it will be performed within a certain period of time or at a certain point intime.When the following conditions are met at the same time, the relevant revenue is recognized as a performance obligation performedwithin a certain period of time; otherwise, the relevant revenue is recognized as a performance obligation performed at a certainpoint in time:
(1) Contract requirements or customers can reasonably expect that the enterprise will engage in activities that have a significantimpact on the intellectual property rights;
(2) The activity will have a favorable or unfavorable impact on customers;
(3) The activity will not result in the transfer of a certain commodity to the customer.
After-sales repurchase transactionFor after-sales repurchase transactions, the Company distinguishes the following two situations for accounting treatment:
(1) If there is a repurchase obligation due to the existence of a long-term arrangement with the customer or the Company enjoys therepurchase 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 beaccounted for in accordance with the relevant provisions of the standards; if the repurchase price is not lower than the originalselling price, it shall be regarded as a financing transaction, and the financial liabilities shall be confirmed when receiving theclient's payment, and the difference between the payment and the repurchase price is recognized as interest expenses during therepurchase period. If the Company fails to exercise the repurchase right upon maturity, when the repurchase right expires, thefinancial liabilities is derecognized, and the revenue is recognized at the same time.
(2) If the Company is obliged to repurchase commodities at the request of the customer, it shall assess whether the customer has amajor economic motivation to exercise the right of claim on the commencement date of contract. If the customer has a majoreconomic motivation to exercise the right of claim, the enterprise shall treat the after-sale repurchase as a lease transaction orfinancing transaction, and conduct accounting treatment in accordance with the provisions of present article (1); otherwise, theCompany will treat it as a sales transaction with a sales return clause, and perform accounting treatments in accordance withrelevant regulations of the standards.
Customer's unexercised rightsIf the Company receives advance payments from customers for sales of goods, it shall first recognize the payments as liabilities, andthen convert them into revenue when the relevant performance obligations are fulfilled. When the advance payment does not needto be refunded and the customer may waive all or part of its contract rights, the Company expects to be entitled to obtain the amountrelated to the contract rights waived by the customer, and the above-mentioned amount shall be recognized as revenue in proportionto the mode in which the customer exercises the contractual rights. Otherwise, the Company can only convert the relevant balanceof the above liabilities into income when the possibility of the customer requesting it to perform the remaining performanceobligations is extremely low.
Initial fee no need to be refundedThe initial fee collected by the Company from the customer on the commencement date of the contract (or close to thecommencement date) shall be included in the transaction price, and it shall be assessed whether the initial fee is related to thetransfer of the promised goods to the customer. If the initial fee is related to the transfer of the promised goods to the customer, andthe goods constitutes a single performance obligation, the Company recognizes the income at the transaction price allocated to thegoods when transferring the goods. If the initial fee is related to the goods promised to transfer to the customer, but the goods doesnot constitute a single performance obligation, the Company will recognize the income at the transaction price allocated to thesingle performance obligation when the single performance obligation containing the product is fulfilled. If the initial fee is notrelated to the goods promised to transfer to the customer, it shall be used as an advance payment for the goods to be transferred inthe future, and shall be recognized as income when the goods is transferred in the future.
If the Company has collected an initial fee that does not need to be refunded and should carry out initial activities to perform thecontract, but these activities do not transfer the promised goods to the customer, the initial fee is related to the goods promised to betransferred in the future, and should be recognized as revenue when transferring the goods in the future, and the Company does notconsider these initial activities when determining the progress of the contract. The Company’s expenditures for the initial activitiesshould be recognized as an asset or included in the current profit and loss in accordance with the relevant provisions of thestandards.
Specific principlesThe Company recognizes the revenue when it fulfills its performance obligations in the contract, that is, when the customer obtainscontrol of the relevant goods or services. Obtaining control over related goods or services means being able to lead the use of thegoods or the provision of the service and obtain almost all of the economic benefits from it.
(1) Commodity sales revenue
The sales contract between the Company and the customers usually only contains the performance obligation for the transferredgoods. The Company usually recognizes revenue at a certain point in time on the basis of comprehensive consideration of thefollowing factors: obtaining the current right to receive payment of the goods, the transfer of major risks and rewards in theownership of the goods, the transfer of the legal ownership of the goods, and the transfer of the physical asset of the goods, thecustomer accepts the goods.
Electricity sales revenueThe Company produces electricity through firepower and realizes sales through integration into Guangdong Power Grid. Forelectricity sales, the Company recognizes the realization of revenue when it has produced electricity and obtains the grid electricitystatistical 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 andmaintenance services, labor services, etc.The Company evaluates the contract on the start date of the contract, identifies each individual performance obligation contained inthe contract, and determines whether each individual performance obligation is performed within a certain period of time or at acertain point in time. If one of the following conditions is met, it is a performance obligation performed within a certain period oftime, the Company recognizes revenue within a period of time according to the progress of the contract:
(1) The customer obtains and consumes the economic benefits brought by the Company's performance at the same time as theCompany's performance;
(2) Customers can control the products under construction during the performance of the Company;
(3) The goods produced by the Company during the performance of the contract have irreplaceable uses, and the Company has theright to collect payment for the cumulative performance part that has been completed so far during the entire contract period.Otherwise, the Company recognizes revenue at the time point when the customer obtains control of the relevant goods or services.
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1Recognition standards of income from labor services provided by Environment Protection Company:
The company recognizes revenue based on the obtained sludge treatment settlement statement jointly confirmed with thetransportation company, the water purification unit, and the company.○2Specific standards for revenue recognition of Engineering Company:
Debugging projects: when the debugging is successful, obtain the confirmation of successful debugging, and recognize the incomeaccording to the contract;Operation and maintenance, management projects: monthly revenue is temporarily estimated and recognized based on attendancetime and labor prices of attendants, and the temporary estimated revenue will be adjusted after obtaining the monthly statementconfirmed by the supplier's stamp and signature, the progress confirmation letter, and the attendance sheet.
Accounting policies applicable before January 1, 2020
1. General principles for the recognition of revenue from sales of goods
(1) The Company has transferred the main risks and rewards of goods ownership to the purchaser;
(2) The Company neither retains the right to continue management usually associated with ownership, nor does it exercise effectivecontrol over the sold commodities;
(3) The amount of income can be reliably measured;
(4) Relevant economic benefits are likely to flow into the Company;
(5) The related, incurred costs or costs to be incurred can be reliably measured.
2.Specific principles
1-Power sales revenueThe Group generates electricity by thermal power, and realizes sales through incorporation into Guangdong power grid. As forpower sales, the Group realizes revenue when it produces electricity and obtains the grid power statistics table confirmed by thepower bureau.
2-Revenue from providing labor serviceUnder the condition of service providing business can be estimated in a reliable way, relevant economic benefit is likely to flow intoenterprise, completion degree of business may be estimated in a reliable way and relevant incurred cost and to be incurred may bemeasured in a reliable way, the revenue from labor service providing recognized. Relevant service revenue may be confirmed by theCompany as percentage-of-completion method on balance sheet date. Completion degree of service business will be determined asshare of incurred service cost in estimated general cost.
If result of service providing business can’t be estimated in a reliable way, service revenue should be confirmed as amount ofincurred service cost expected to be compensated, where incurred service cost is taken as period charge. If no compensation isexpected for incurred service cost, income won’t be confirmed.
3- Specific criteria for revenue recognition of the Environment Protection CompanyAt the end of each month, the company confirms the monthly income based on the initially confirmed sludge transportation volumeand sludge treatment price, and revises the revenue confirmed last month after checking with the relevant units in the next month,and the correction proportion is relatively small.
4- Specific criteria for revenue recognition of the Engineering Company
(1)Debugging projects: When the debugging is successful, obtain the confirmation of successful debugging, and confirm the incomeaccording to the contract;
(2) Operation and maintenance and management projects: Temporarily estimate and confirm the income every month according tothe attendance time and labor service price of attendance staff, and adjust the temporarily estimated income after obtaining themonthly settlement statement sealed and signed by suppliers, the confirmation of progress, and the attendance form.
(25)Contract costs
The cost of obtaining the contract
If the incremental cost (that is, the cost that would not be incurred without obtaining the contract) incurred by theCompany to obtain the contract is expected to be recovered, it shall be recognized as an asset, and use the samebasis for the recognition of the income of goods or services related to the asset for sales, and be included in thecurrent profit and loss. If the asset amortization period does not exceed one year, it shall be included in thecurrent profit and loss when it occurs. Other expenses incurred by the Group in order to obtain the contract shallbe included in the current profit and loss when incurred, except for those clearly borne by the customer.
The cost of fulfilling the contractThe cost incurred by the Company for the performance of the contract that does not fall within the scope of otheraccounting standards for business enterprises except the income standard and meets the following conditions atthe same time is recognized as an asset: (1) The cost is directly related to a current or expected contract; (2) Thecost increases the resources of the Group for fulfilling the performance obligations in the future; (3) The cost isexpected to be recovered. The above-mentioned assets are amortized on the same basis as the recognition of theincome of goods or services related to the asset and included in the current profit and loss.
Contract cost impairmentWhen the Company determines the impairment loss of assets related to the contract cost, it first determines theimpairment loss of other assets related to the contract that are confirmed in accordance with other relevantenterprise accounting standards; then, based on the difference between the book value of which is higher than theremaining consideration that the Company is expected to obtain due to the transfer of the asset-relatedcommodities and the estimated cost of transferring the related commodities, the excess shall be provided forimpairment 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 valueof the asset, the original provision for asset impairment shall be reversed and included in the current profit and loss, but the bookvalue of the asset after the reversal shall not exceed the book value of the asset on the date of reversal under the assumption that noimpairment provision is made.
(26) Government subsidy
1. Type
Government subsidy refers to the monetary asset and non-monetary asset that the Company obtains from thegovernment free of charge which are divided into the asset-related government subsidy and the income-relatedgovernment subsidy.
Government subsidies related to assets refer to government subsidies obtained by the Company for purchase andconstruction or to form long-term assets in other ways. Government subsidies related to income refer togovernment subsidies other than government subsidies related to assets.
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 thefinancial support policy and is expected to receive financial support funds, the government subsidy shall berecognized according to the amount receivable. In addition, government subsidies are confirmed when they areactually received.
If a government subsidy is a monetary asset, it shall be measured at the amount received or receivable. If agovernment subsidy is a non-monetary asset, it shall be measured at its fair value; if its fair value cannot beobtained reliably, it shall be measured at its nominal amount (1 yuan). Government subsidies measured at theirnominal amounts are directly included in the current profits and losses.
3. Accounting treatment
Government subsidies related to assets are used to offset the book value of related assets or be recognized asdeferred income, those recognized as deferred income shall be included in the current profit and loss (thoserelated to the Company’s daily activities shall be included in other income; those not related to the Company’sdaily activities shall be included in the non-operating income) in a reasonable and systematic way within theuseful life of the relevant assets;
Government subsidies related to income that are used to compensate the Company’s related costs or losses insubsequent periods shall be recognized as deferred income, and shall be included in the current profits and losses(those related to the Company’s daily activities shall be included in other income; those not related to theCompany’s daily activities shall be included in the non-operating income) or used to offset related costs or lossesduring the period when the relevant costs or losses are recognized; those used to compensate the Company’srelated costs or losses are directly included in the current profits and losses (those related to the Company’s dailyactivities shall be included in other income; those not related to the Company’s daily activities shall be includedin 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 twosituations 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 preferentialpolicy interest rate, the Company uses the amount of borrowing actually received as the entry value of the loan, and calculates therelated 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 interestdiscount against the relevant borrowing costs.
(27) Deferred income tax asset/ deferred income tax liability
For deductible temporary differences to recognize deferred income tax assets, they shall be within the limit of thetaxable income that is likely to be obtained in the future to deduct deductible temporary differences. For thedeductible 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 torecognize the corresponding deferred income tax assets. For taxable temporary differences, except for specialcircumstances, deferred income tax liabilities are recognized.
Special circumstances that do not recognize deferred income tax assets or deferred income tax liabilities includeinitial recognition of goodwill; Other transactions or matters that do not affect accounting profits or taxableincome (or deductible losses) when they occur except for a business combination. When having the statutoryright to settle on a net basis, and intending to settle on a net basis or obtain assets and pay off liabilities at thesame time, the current income tax assets and current income tax liabilities are presented as the net amount afteroffsetting.
When having the statutory right to settle current income tax assets and current income tax liabilities on a net basis, and the deferredincome tax assets and deferred income tax liabilities are related to the income tax levied by the same tax administration departmenton the same taxpayer or related to different taxpayers, however, in the future period during which important deferred income taxassets and liabilities are reversed, when the taxpayer involved intends to settle the current income tax assets and liabilities on a netbasis or obtain assets and repay liabilities at the same time, the deferred income tax assets and deferred income tax liabilities arepresented as the net amount after offsetting.
(28) Leasing
1. Accounting treatment of operating leases
(1) The lease fee paid by the company for rented assets shall be apportioned on a straight-line basis during theentire lease period without deducting the rent-free period and included in the current expenses. The initial directexpenses related to the lease transaction paid by the company shall be included in the current expenses.When the asset lessor bears the lease-related expenses that should be borne by the company, the companydeducts this part of the cost from the total rent, amortizes according to the deducted rental expenses during thelease term, and reckons it in the current expenses.
(2) The lease fee charged by the company for lease of assets shall be apportioned on a straight-line basis duringthe entire lease period without deducting the rent-free period and recognized as lease-related income. The initialdirect expenses related to the lease transaction paid by the company shall be included in the current expenses; ifthe amount is large, it shall be capitalized and included in the current income in installments based on the samebasis as the lease-related income recognition during the entire lease period.When the company bears the lease-related expenses that should be borne by the lessee, the company deducts thispart of the expenses from the total rental income, and distributes according to the deducted rental expensesduring the lease term.
2. Accounting treatment of financial leasing
(1) Financing rent in assets: on the start date of the lease, the company takes the lower of the fair value of theleased asset and the present value of the minimum lease payment as the entry value of the leased asset, and theminimum lease payment as the entry value of of long-term payable, and the difference is regarded asunrecognized financing expenses. Refer to Note III (15) Fixed Assets for the identification basis, valuation and
depreciation methods of finance leased assets.
The company uses the effective interest method to amortize unrecognized financing expenses during the assetlease period and include them in financial expenses.
(2) Financing rent out assets: on the start date of the lease, the company recognizes the difference between the sum of receivablefinancing lease payments and unguaranteed residual value and its present value as unrealized financing income as unrealizedfinancing income, which is recognized as rental income during each period when the rent is received in the future, the company'sinitial direct expenses related to the lease transactions are included in the initial measurement of the financial lease receivables, andthe amount of income recognized during the lease period is reduced.
(29) Changes of major accounting policy and accounting estimation
1. Change of major accounting policies
(1) The impact of the implementation of the new revenue standard on the CompanyIn 2017, the Ministry of Finance promulgated the revised "Accounting Standards for Business Enterprises No. 14- Revenue" (hereinafter referred to as the "New Revenue Standards", and the revenue standards before revisionwere referred to as the "Original Revenue Standards"). The new revenue standards have introduced a five-stepmethod for revenue recognition and measurement, and added more guidance for specific transactions (or events).
The Company has begun accounting treatment in accordance with the newly revised above-mentioned standards from January 1,2020. For the changed accounting policies, please refer to Note III (24). The new revenue standards require that the cumulativeimpact of the first implementation of the standards be adjusted for the amount of retained earnings and other related items in thefinancial statements at the beginning of the first implementation period (i.e. January 1, 2020), and no adjustments were made toinformation during comparable period. When implementing the new revenue standards, the Company only adjusted the cumulativeimpact of contracts that have not been completed on the first implementation date.The first implementation of the standards has no significant impact on the company's retained earnings at the beginning of 2020.The impact on the statements on January 1, 2021 and December 31, 2019 are listed as follows:
Consolidate balance sheet
| Item | 2019-12-31 | Reclassify | 2020-1-1 |
| Account receivable | 178,150,580.32 | -840,146.81 | 177,310,433.51 |
| Contract assets | 840,146.81 | 840,146.81 |
| Item | (listed under the original revenue standards) 2020-12-31 | Reclassify | (listed under the new revenue standards) 2020-12-31 |
| Account receivable | 92,522,652.88 | -7,229,600.00 | 85,293,052.88 |
| Contract assets | 7,229,600.00 | 7,229,600.00 |
The Ministry of Finance issued the "Accounting Standards for Business Enterprises Interpretation No. 13" (Cai Kuai [2019] No. 21,hereinafter referred to as "Interpretation No. 13") on December 10, 2019, which has taken effect on January 1, 2020., retrospectiveadjustment is not required.
① Identification of related parties
Interpretation No. 13 clarifies that the following circumstances constitute a related party: a joint venture or an associated enterprisebetween an enterprise and other member units (including parent companies and subsidiaries) of the enterprise group to which itbelongs; a joint venture of an enterprise and other joint ventures or associated enterprises of the enterprise. In addition,Interpretation No. 13 also clarifies that only two or more companies that are significantly affected by one party do not constituterelated parties. It also adds that associated enterprises include associated enterprises and their subsidiaries, and joint venturesinclude joint ventures and their subsidiaries.
② The definition of business
Interpretation No. 13 completes the three elements of business composition, refines the judgment conditions of the businesscomposition, and introduces the "concentration test" option to simplify the judgment of whether the combination obtained under thesame control constitutes a business to a certain extent.The Company has implemented Interpretation No. 13 from January 1, 2020, and the comparative financial statements has not beenadjusted. The implementation of Interpretation No. 13 has not had a significant impact on the Company's financial status andoperating results.
(3) Implement the "Regulations on Accounting Treatment of Rent Concessions Related to the COVID-19 Epidemic"On June 19, 2020, the Ministry of Finance issued the "Regulations on Accounting Treatment of Rent Concessions Related to theCOVID-19 Epidemic" (Cai Kuai (2020) No. 10), which came into effect on June 19, 2020, allowing companies to adjust therelevant rent concessions that occurred between January 1, 2020 and the implementation date of this regulation. According to theregulations, companies can choose to adopt simplified methods for accounting treatments for rent reductions and deferred paymentof rents directly caused by the COVID-19 epidemic that meet the conditions.
The Company has implemented this regulation from January 1, 2020, and the comparative financial statements has not beenadjusted. The implementation of this regulation has not had a significant impact on the Company's financial status and operatingresults.
2. Change of accounting estimation
No change of accounting estimation occurred in the reporting period
IV. Taxes
(1) Main taxation and rates
| Taxation items | Taxation basis | Tax rate |
| VAT | Calculate the output tax based on the sales of goods and taxable service income calculated according to the tax law, after deducting the input tax allowable for deduction in the current period, the difference is the VAT payable. | 6%, 9%, 3% |
| City maintenance tax | According to the actual payment of VAT and consumption tax | 7%, 5% |
| Taxation items | Taxation basis | Tax rate |
| Education surtax | According to the actual payment of VAT and consumption tax | 3% |
| Local education surtax | According to the actual payment of VAT and consumption tax | 2% |
| Enterprise income tax | According to the taxable income amount | 25%, 15%, 16.5%, 17% |
| Land-use tax of town | 2 Yuan ~ 8Yuan per square meter of the actual occupied are for the industrial land located in Nanshan District, Shenzhen City; 1Yuan per square meter of the actual occupied are for the industrial land located in Zhongshan City | |
| Taxpaying body | Rate of income tax |
| The Company | 25% |
| New Power Company | 25% |
| Engineering Company | 25% |
| Shenzhen Server | 25% |
| Environment Protection Company | 15% |
| Zhongshan Electric Power | 25% |
| Singapore Company | 17% |
| Shen Storage | 25% |
| Syndisome (HK) | 16.5% |
| Tax | Name of the company | Relevant regulation and policies basis | Approval institution | Approval documents | Exemption range | Period of validity |
| VAT | Environment Protection | Notice on "contents of products with comprehensive | Shenzhen Provincial | SQSST[2018]No.: 18302 | Resource comprehensi | 31 Aug. 2018 to 31 July |
| Tax | Name of the company | Relevant regulation and policies basis | Approval institution | Approval documents | Exemption range | Period of validity |
| Company | utilization of resources and value-added tax privilege of labor service" (CS No. [2015] 78) | Office, SAT (Qianhai SAT) | ve utilization of VAT refund | 2022 |
| Item | Ending Balance | Year-end balance of last year |
| Cash on hand | 101,163.11 | 84,307.60 |
| Bank savings | 397,000,109.10 | 731,339,856.01 |
| Other monetary fund | 367,500,000.00 | 41,785,691.23 |
| Total | 764,601,272.21 | 773,209,854.84 |
| Including: total amount saving aboard | 50,810,349.72 | 6,242,072.77 |
| Item | Ending Balance | Year-end balance of last year |
| Performance bond | 1,719,853.88 | |
| Total | 1,719,853.88 |
| Account age | Ending Balance | Year-end balance of last year |
| Within one year | 85,293,052.88 | 178,147,691.32 |
| Over 3 years | 5,558,673.67 | 5,769,529.84 |
| Subtotal | 90,851,726.55 | 183,917,221.16 |
| Less: Bad debt provision | 5,558,673.67 | 5,766,640.84 |
| Total | 85,293,052.88 | 178,150,580.32 |
| Category | Ending Balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| Accounts receivable with single provision for bad debts | 5,558,673.67 | 6.12 | 5,558,673.67 | 100.00 | - |
| Provision for bad debts by portfolio | 85,293,052.88 | 93.88 | 85,293,052.88 | ||
| Total | 90,851,726.55 | 100.00 | 5,558,673.67 | 6.12 | 85,293,052.88 |
| Category | Balance at end of the previous year | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| Accounts receivable with single provision for bad debts | 5,766,640.84 | 3.14 | 5,766,640.84 | 100.00 | |
| Provision for bad debts by portfolio | 178,150,580.32 | 96.86 | 178,150,580.32 | ||
| Total | 183,917,221.16 | 100.00 | 5,766,640.84 | 3.14 | 178,150,580.32 |
| Name | Ending Balance | |||
| Book amount | Bad debt provision | Accrual proportion (%) | Causes | |
| Shenzhen Petrochemical Products Bonded Trading Co., Ltd. | 3,474,613.06 | 3,474,613.06 | 100.00 | Uncollectible in excepted |
| Zhongji Construction Development Co., Ltd. | 1,137,145.51 | 1,137,145.51 | 100.00 | Uncollectible in excepted |
| Shenzhen Fuhuade Power Co., Ltd | 800,000.00 | 800,000.00 | 100.00 | Uncollectible in excepted |
| Other | 146,915.10 | 146,915.10 | 100.00 | Uncollectible in excepted |
| Total | 5,558,673.67 | 5,558,673.67 | 100.00 | |
3. Bad debt provision accrual collected or switch back
| Category | Year-end balance of last year | Current amount changed | Ending Balance | ||
| Accrual | Collected or switch back | Other | |||
| Accounts receivable with single provision for bad debts | 5,766,640.84 | 207,967.17 | 5,558,673.67 | ||
| Total | 5,766,640.84 | 207,967.17 | 5,558,673.67 | ||
| Age | Ending Balance | Year-end balance of last year | ||
| Book balance | Proportion (%) | Book balance | Proportion (%) | |
| Within 1year | 22,552,426.03 | 76.33 | 69,896,494.56 | 99.84 |
| 1 to 2years | 6,883,175.38 | 23.30 | 15,600.00 | 0.02 |
| 2 to 3years | 15,600.00 | 0.05 | 32,000.00 | 0.05 |
| Over 3 years | 93,586.94 | 0.32 | 61,586.94 | 0.09 |
| Total | 29,544,788.35 | 100.00 | 70,005,681.50 | 100.00 |
| Item | Ending Balance | Year-end balance of last year |
| Interest receivable | ||
| Other account receivable | 31,027,754.36 | 32,321,826.94 |
| Item | Ending Balance | Year-end balance of last year |
| Total | 31,027,754.36 | 32,321,826.94 |
| Age | Ending Balance | Year-end balance of last year |
| Within 1year | 8,721,096.29 | 4,589,653.32 |
| 1 to 2 years | 958,772.47 | 1,223,336.54 |
| 2 to 3 years | 1,179,854.47 | 3,414,019.37 |
| 3 to 4 years | 2,226,212.44 | 47,104,101.54 |
| 4 to 5 years | 46,061,408.80 | 4,018,544.61 |
| Over 5 years | 3,920,797.49 | 3,804,592.00 |
| Subtotal | 63,068,141.96 | 64,154,247.38 |
| Less: Bad debt provision | 32,040,387.61 | 31,832,420.44 |
| Total | 31,027,754.36 | 32,321,826.94 |
| Category | Ending Balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| Accounts receivable with single provision for bad debts | 32,525,936.22 | 51.57 | 31,832,420.44 | 97.87 | 693,515.78 |
| Provision for bad debts by portfolio of credit risk | 30,542,205.75 | 48.43 | 207,967.17 | 0.68 | 30,334,238.57 |
| Total | 63,068,141.97 | 100.00 | 32,040,387.61 | 50.80 | 31,027,754.36 |
| Category | Balance at the end of the previous year | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| Accounts receivable with single provision for | 32,525,936.22 | 50.70 | 31,832,420.44 | 97.87 | 693,515.78 |
| Category | Balance at the end of the previous year | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| bad debts | |||||
| Provision for bad debts by portfolio of credit risk | 31,628,311.16 | 49.30 | 31,628,311.16 | ||
| Total | 64,154,247.38 | 100.00 | 31,832,420.44 | 49.62 | 32,321,826.94 |
| Name | Ending Balance | |||
| Book balance | Bad debt provision | Accrual ratio （%） | Accrual reasons | |
| Huiyang Kangtai Industrial Company | 14,311,626.70 | 14,311,626.70 | 100.00 | Un-collectable in excepted |
| Shandong Jinan Generation Equipment Plant | 3,560,000.00 | 3,560,000.00 | 100.00 | Un-collectable in excepted |
| Individual income tax | 2,470,039.76 | 2,470,039.76 | 100.00 | Un-collectable in excepted |
| Dormitory amount receivable | 2,083,698.16 | 1,736,004.16 | 83.31 | Un-collectable in excepted |
| Personal receivables | 7,498,997.87 | 7,498,997.87 | 100.00 | Un-collectable in excepted |
| Deposit receivable | 1,658,796.73 | 1,312,974.95 | 79.15 | Un-collectable in excepted |
| Other | 942,777.00 | 942,777.00 | 100.00 | Un-collectable in excepted |
| Total | 32,525,936.22 | 31,832,420.44 | 97.87 | |
| Name | Ending Balance | ||
| Other account receivable | Bad debt provision | Accrual ratio （%） | |
| Provision for bad debts by portfolio | 30,542,205.74 | 207,967.17 | 0.68 |
| Total | 30,542,205.74 | 207,967.17 | 0.68 |
| Bad debt provision | Phases I | Phases II | Phases III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance at year-begin | 31,832,420.44 | 31,832,420.44 | ||
| Balance at year-begin of the period | 31,832,420.44 | 31,832,420.44 | ||
| ——Turn to phase II | ||||
| ——Turn to phase III | ||||
| ——Return to Phase II | ||||
| ——Return to Phase I | ||||
| Current accrual | ||||
| Current switch back | ||||
| Rewrite in the period | ||||
| Write-off in the period | ||||
| Other changes | 207,967.17 | 207,967.17 | ||
| Ending Balance | 207,967.17 | 31,832,420.44 | 32,040,387.61 |
| Nature | Ending book balance | Book balance at last year-end |
| Deposit and security deposit | 5,130,967.25 | 8,114,769.72 |
| Reserve fund | 566,951.40 | 616,951.40 |
| Withholding payment | 9,151,898.54 | 10,008,932.63 |
| Current payment | 18,066,774.22 | 18,075,298.38 |
| other | 8,776,977.74 | 5,163,921.12 |
| Accounts receivable of Huidong Server | 21,374,572.81 | 22,174,374.13 |
| Subtotal | 63,068,141.97 | 64,154,247.38 |
| Less: Bad debt provision | 32,040,387.61 | 31,832,420.44 |
| Total | 31,027,754.36 | 32,321,826.94 |
RMB 24,392,597.56, accounting for 38.68% of the total balance of other receivables at the end of the period.
(5) Inventory
1. Classification
| Item | Ending Balance | Year-end balance of last year | ||||
| Book balance | Inventory falling price reserves | Book value | Book balance | Inventory falling price reserves | Book value | |
| Raw materials | 149,653,114.11 | 49,407,585.05 | 100,245,529.06 | 171,828,426.19 | 47,141,982.58 | 124,686,443.61 |
| Total | 149,653,114.11 | 49,407,585.05 | 100,245,529.06 | 171,828,426.19 | 47,141,982.58 | 124,686,443.61 |
| Item | Year-end balance of last year | Current increased | Current decreased | Ending Balance | ||
| Accrual | Other | Switch-back or write-off | Other (note) | |||
| Raw materials | 47,141,982.58 | 7,399,234.51 | 5,133,632.04 | 49,407,585.05 | ||
| Total | 47,141,982.58 | 7,399,234.51 | 5,133,632.04 | 49,407,585.05 | ||
| Item | Ending Balance | Balance at year-begin |
| Operation and maintenance project settlement accounts receivable | 7,229,600.00 | 840,146.81 |
| Subtotal | 7,229,600.00 | 840,146.81 |
| Provision for impairment of contract assets | ||
| Total | 7,229,600.00 | 840,146.81 |
| Item | Ending Balance | Year-end balance of last year |
| VAT input tax deductible | 332,071,261.59 | 349,953,491.34 |
| Income tax paid in advance | 6,583,089.98 | 6,583,089.98 |
| Bank financial products | 575,655,558.24 | 86,000,000.00 |
| Accrual interest of time deposit | 2,918,334.73 | 2,670,150.01 |
| Other | 60,000.00 | 30,000.00 |
| Total | 917,288,244.54 | 445,236,731.33 |
(8) Long-term equity investment
| The invested entity | Year-end balance of last year | Changes +,- | Ending Balance | Period-end balance of depreciation reserves | |||||||
| Additional investment | Disinvestment | Investment gains/losses recognized by equity method | Other comprehensive income adjustment | Other changes in equity | Declaration of cash dividends or profits | Provision for impairment | Other | ||||
| 1. Joint venture | |||||||||||
| Huidong Server Harbor Comprehensive Development Company | 14,619,203.04 | -5,725,794.18 | 8,893,408.86 | ||||||||
| Total | 14,619,203.04 | -5,725,794.18 | 8,893,408.86 | ||||||||
(9) Other equity instrument investment
1. Other equity instrument investment
| Item | Ending Balance | Year-end balance of last year |
| CPI Jiangxi Nuclear Power Company | 60,615,000.00 | 60,615,000.00 |
| Nanjing Zhongsheng Holding Co., Ltd. | 21,000,000.00 | |
| Shenzhen Petrochemical Oil Bonded Trade Co., Ltd. - investment cost | 2,500,000.00 | 2,500,000.00 |
| Shenzhen Petrochemical Oil Bonded Trade Co., Ltd. - change in fair value | -2,500,000.00 | -2,500,000.00 |
| Total | 81,615,000.00 | 60,615,000.00 |
Item
Dividend
income
recognized
Accumulate
Accumulate
Retained
earnings
transferred
fro
Designatedas theinvestmentmeasuredat fairvalue
andwhos
echang
esrecko
ned
Reasons
of
retained
earnings
transferre
| Jiangxi Nuclear Power Co., Ltd. | intents to holding for a long-term | |||||
| Nanjing Zhongsheng Holding Co., Ltd. | intents to holding for a long-term | |||||
| She | -2,500,000.00 | intents to |
| nzhen Petrochemical Oil Bonded Trade Co., Lt | holding for a long-term |
| d. | ||||||
| Total | -2,500,000.00 |
| Item | House and building | Total |
| 1. Original book value | ||
| （1）Year-end balance of last year | 9,708,014.96 | 9,708,014.96 |
| （2）Current increased | ||
| （3）Current decreased | ||
| （4）Ending Balance | 9,708,014.96 | 9,708,014.96 |
| 2. Accumulated depreciation and accumulated amortization | ||
| （1）Year-end balance of last year | 7,306,687.96 | 7,306,687.96 |
| （2）Current increased | 196,137.60 | 196,137.60 |
| （3）Current decreased | ||
| （4）Ending Balance | 7,502,825.56 | 7,502,825.56 |
| 3. Depreciation provision | ||
| （1）Year-end balance of last year | ||
| （2）Current increased | ||
| （3）Current decreased | ||
| （4）Ending Balance | ||
| 4．Book value | ||
| (1) Period-end book value | 2,205,189.40 | 2,205,189.40 |
| (2) Book value of end of last year | 2,401,327.00 | 2,401,327.00 |
| Item | Ending Balance | Year-end balance of last year |
| Item | Ending Balance | Year-end balance of last year |
| Fixed assets | 925,745,208.55 | 1,381,675,872.68 |
| Disposal of fixed assets | ||
| Total | 925,745,208.55 | 1,381,675,872.68 |
2. Fixed assets
| Item | House and buildings | Machinery equipment | Transportation tools | Other | Total |
| 1. Original book value | |||||
| （1）Year-end balance of last year | 501,321,101.48 | 4,079,001,987.60 | 16,336,684.19 | 55,807,562.91 | 4,652,467,336.18 |
| （2）Current increased | 9,153,903.96 | 2,813,738.59 | 4,153,230.22 | 16,120,872.77 | |
| —Purchase | 2,813,738.59 | 4,153,230.22 | 6,966,968.81 | ||
| Construction in progress transfer-in | 9,153,903.96 | 9,153,903.96 | |||
| （3）Current decreased | 75,311,278.51 | 928,813,610.88 | 2,392,622.25 | 1,475,505.38 | 1,007,993,017.02 |
| —Disposal or scrapping | 15,960,958.30 | 715,372.52 | 385,603.62 | 17,061,934.44 | |
| --- Decrease in disposal of subsidiaries | 75,311,278.51 | 912,852,652.58 | 1,677,249.73 | 1,089,901.76 | 990,931,082.58 |
| （4）Ending Balance | 426,009,822.97 | 3,159,342,280.68 | 16,757,800.53 | 58,485,287.75 | 3,660,595,191.93 |
| 2. Accumulated depreciation | - | ||||
| （1）Year-end balance of last year | 308,704,855.97 | 2,768,225,963.03 | 9,246,358.34 | 43,480,376.04 | 3,129,657,553.38 |
| （2）Current increased | 11,301,007.68 | 56,821,596.70 | 1,527,499.94 | 1,843,545.95 | 71,493,650.27 |
| —Accrual | 11,301,007.68 | 56,821,596.70 | 1,527,499.94 | 1,843,545.95 | 71,493,650.27 |
| （3）Current decreased | 45,538,524.40 | 539,322,987.55 | 1,995,714.32 | 1,141,057.18 | 587,998,283.45 |
| —Disposal or scrapping | 14,060,204.09 | 660,492.52 | 347,043.26 | 15,067,739.87 |
| Item | House and buildings | Machinery equipment | Transportation tools | Other | Total |
| --- Decrease in disposal of subsidiaries | 45,538,524.40 | 525,262,783.46 | 1,335,221.80 | 794,013.92 | 572,930,543.58 |
| （4）Ending Balance | 274,467,339.25 | 2,285,724,572.18 | 8,778,143.96 | 44,182,864.81 | 2,613,152,920.20 |
| 3. Impairment provision | - | ||||
| （1）Year-end balance of last year | 14,860,025.13 | 126,273,884.99 | 141,133,910.12 | ||
| （2）Current increased | 14,045,534.44 | 14,045,534.44 | |||
| —Accrual | 14,045,534.44 | 14,045,534.44 | |||
| （3）Current decreased | 5,059,785.83 | 28,422,595.55 | - | - | 33,482,381.38 |
| —Disposal or scrapping | - | ||||
| --- Decrease in disposal of subsidiaries | 5,059,785.83 | 28,422,595.55 | 33,482,381.38 | ||
| （4）Ending Balance | 9,800,239.30 | 111,896,823.88 | - | - | 121,697,063.18 |
| 4．Book value | |||||
| (1) Period-end book value | 141,742,244.42 | 761,720,884.62 | 7,979,656.57 | 14,302,422.94 | 925,745,208.55 |
| (2) Book value of end of last year | 177,756,220.38 | 1,184,502,139.58 | 7,090,325.85 | 12,327,186.87 | 1,381,675,872.68 |
3. Idle fixed assets temporary
| Item | Original book value | Accumulated depreciation | Impairment provision | Book value | Note |
| Housing & buildings | 127,893,412.10 | 97,976,714.45 | 13,948,439.04 | 15,968,258.61 | |
| Machinery equipment | 575,864,445.49 | 489,027,393.44 | 48,010,891.76 | 38,826,160.29 | |
| Transportation equipment | 256,300.00 | 230,670.00 | 25,630.00 | ||
| Total | 704,014,157.59 | 587,234,777.89 | 61,959,330.80 | 54,820,048.90 |
| Item | Book value | Reasons for failing to complete the property rights certificate |
| Circulating Water Pump House | 1,316,071.46 | Procedures uncompleted |
| Cooling Tower | 673,259.25 | Procedures uncompleted |
| Complex Building-Xiefu | 443,246.19 | Procedures uncompleted |
| Heavy oil treatment workshop | 402,438.65 | Procedures uncompleted |
| Comprehensive building canteen | 266,469.03 | Procedures uncompleted |
| Chemical water treatment workshop | 232,960.00 | Procedures uncompleted |
| Fire pump room | 209,965.89 | Procedures uncompleted |
| Main entrance mail room | 164,356.97 | Procedures uncompleted |
| Start-up boiler house | 90,681.43 | Procedures uncompleted |
| Total | 3,799,448.87 |
| Item | Ending Balance | Year-end balance of last year |
| Construction in progress | 42,782,712.98 | 66,474,630.23 |
| Item | Ending Balance | Year-end balance of last year |
| Engineering materials | ||
| Total | 42,782,712.98 | 66,474,630.23 |
2. Construction in progress
| Item | Ending Balance | Year-end balance of last year | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Cogeneration | 60,112,152.46 | 22,273,910.43 | 37,838,242.03 | 61,987,009.57 | - | 61,987,009.57 |
| Oil to Gas Works | 13,230,574.53 | 13,230,574.53 | - | 5,720,987.59 | 5,720,987.59 | - |
| Technical innovation | 4,944,470.95 | 4,944,470.95 | 30,278,212.46 | 27,150,612.67 | 3,127,599.79 | |
| Other | 1,360,020.87 | - | 1,360,020.87 | |||
| Total | 78,287,197.94 | 35,504,484.96 | 42,782,712.98 | 99,346,230.49 | 32,871,600.26 | 66,474,630.23 |
3. Changes of significant projects in construction in the period
| Item | Budget | Year-end balance of last year | Current increased | Transferred fixed assets in this period | Other decrease in the period | Ending Balance | Proportion of accumulative project investment in budget (%) | Project progress (%) | Accumulative amount of capitalization of interest | Including: capitalization of interest | Rate of interest capitalization (%) | Capital sources |
| Cogeneration | 60,000,000.00 | 63,151,182.64 | 2,211,148.54 | 5,250,178.72 | 60,112,152.46 | 100.00 | 100.00 | 6,476,185.46 | Self-raised and borrowing | |||
| Oil to Gas Works | 74,400,000.00 | 32,871,600.26 | 19,641,025.73 | 13,230,574.53 | 63.76 | 63.76 | Self-raised | |||||
| Technical innovation | 3,061,557.07 | 10,774,927.32 | 8,892,013.44 | 4,944,470.95 | Not applicable | Not applicable | Self-raised | |||||
| Other | 261,890.52 | 261,890.52 | - | Self-raised | ||||||||
| Total | 134,400,000.00 | 99,346,230.49 | 12,986,075.86 | 9,153,903.96 | 24,891,204.45 | 78,287,197.94 | 6,476,185.46 |
4. Accrual of impairment provision for Construction in progress in the period
| Item | Withdrawal amount for the current period | Reason for provision |
| Cogeneration | 22,273,910.43 | Failed to pass the acceptance, not put into use |
| Total | 22,273,910.43 |
| Item | Land use right | Software | Total |
| 1．Original book value | |||
| （1）Year-end balance of last year | 91,355,995.46 | 3,577,588.80 | 94,933,584.26 |
| （2）Current increased | 213,630.54 | 213,630.54 | |
| —Purchase | 213,630.54 | 213,630.54 | |
| （3）Current decreased | 30,542,000.70 | 30,542,000.70 | |
| —Disposal | |||
| —Decrease in disposal of subsidiaries | 30,542,000.70 | 30,542,000.70 | |
| （4）Ending Balance | 60,813,994.76 | 3,791,219.34 | 64,605,214.10 |
| 2. Accumulated amortization | |||
| （1）Year-end balance of last year | 48,080,331.33 | 3,251,086.49 | 51,331,417.82 |
| （2）Current increased | 700,231.35 | 207,891.42 | 908,122.77 |
| —Accrual | 700,231.35 | 207,891.42 | 908,122.77 |
| （3）Current decreased | 8,759,936.73 | 8,759,936.73 | |
| —Disposal | |||
| —Decrease in disposal of subsidiaries | 8,759,936.73 | 8,759,936.73 | |
| （4）Ending Balance | 40,020,625.95 | 3,458,977.91 | 43,479,603.86 |
| 3．Impairment provision | |||
| （1）Year-end balance of last year | |||
| （2）Current increased | |||
| —Accrual | |||
| （3）Current decreased | |||
| —Disposal | |||
| （4）Ending Balance |
| Item | Land use right | Software | Total |
| 4．Book value | |||
| (1) Closing book value | 20,793,368.81 | 332,241.43 | 21,125,610.24 |
| (2) Book value at the end of last year | 43,275,664.13 | 326,502.31 | 43,602,166.44 |
| Item | Book value | Reasons for failing to complete the property rights certificate |
| Land use right of the wharf and pipe gallery | 530,733.25 | Property rights certificate is undergoing |
| Total | 530,733.25 |
| Item | Year-end balance of last year | Current increased | Amortized in the Period | Other decrease | Ending Balance |
| Exhibition hall decoration amount | 1,174,171.16 | 114,851.49 | 261,513.71 | 1,027,508.94 | |
| Total | 1,174,171.16 | 114,851.49 | 261,513.71 | 1,027,508.94 |
| Item | Ending Balance | Year-end balance of last year | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Bad debt provision for account receivable | 5,628,573.77 | 1,400,153.44 | 5,628,573.77 | 1,400,153.44 |
| Bad debt provision for other receivable | 723,585.00 | 180,896.25 | 723,585.00 | 180,896.25 |
| Changes in fair value of other equity instrument | 2,500,000.00 | 625,000.00 | 2,500,000.00 | 625,000.00 |
| Item | Ending Balance | Year-end balance of last year | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| investments | ||||
| Total | 8,852,158.77 | 2,206,049.69 | 8,852,158.77 | 2,206,049.69 |
| Item | Ending Balance | Year-end balance of last year |
| Deductible temporary difference | 257,908,575.87 | 252,394,395.47 |
| Deductible loss | 150,290,572.14 | 195,054,252.98 |
| Total | 408,199,148.01 | 447,448,648.45 |
| Year | Ending Balance | Year-end balance of last year | Note |
| 2020 | 51,262,905.45 | ||
| 2021 | 8,844,687.56 | 74,575,975.11 | |
| 2022 | 18,744,225.08 | 23,638,284.56 | |
| 2023 | 41,640,520.44 | 41,640,520.44 | |
| 2024 | 11,385,937.72 | 3,936,567.42 | |
| 2025 | 69,675,201.34 | ||
| Total | 150,290,572.14 | 195,054,252.98 |
| Item | Ending Balance | Year-end balance of last year | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Project of LNG | 22,882,181.78 | 22,882,181.78 | ||||
| Total | 22,882,181.78 | 22,882,181.78 | ||||
| Item | Ending Balance | Year-end balance of last year |
| Item | Ending Balance | Year-end balance of last year |
| Guarantee loans | 300,000,000.00 | |
| Credit loans | 672,033,285.00 | 580,000,000.00 |
| Accrued interest | 3,495,573.48 | 1,075,378.48 |
| Total | 675,528,858.48 | 881,075,378.48 |
| Species | Ending Balance | Year-end balance of last year |
| Bank acceptance | 30,467,345.48 | |
| Total | 30,467,345.48 |
| Item | Ending Balance | Year-end balance of last year |
| Materials | 1,485,870.91 | 12,180,417.48 |
| Electricity | 3,198,432.35 | 1,760,985.99 |
| Labor | 4,622,000.00 | 3,102,530.32 |
| Others | 2,827,168.62 | |
| Total | 9,306,303.26 | 19,871,102.41 |
| Item | Year-end balance of last year | Current increased | Current Decreased | Ending Balance |
| Short-term remuneration | 54,801,004.42 | 156,245,639.64 | 142,058,245.03 | 68,988,399.03 |
| Post-employment welfare-defined contribution plans | 407,428.11 | 12,202,866.56 | 12,171,789.73 | 438,504.94 |
| Severance Pay | ||||
| Other welfare due within one year |
| Item | Year-end balance of last year | Current increased | Current Decreased | Ending Balance |
| Total | 55,208,432.53 | 168,448,506.20 | 154,230,034.76 | 69,426,903.97 |
| Item | Year-end balance of last year | Current increased | Current Decreased | Ending Balance |
| (1) Wages , bonuses, allowances and subsidies | 53,579,116.98 | 128,573,278.37 | 113,668,220.98 | 68,484,174.37 |
| (2) Welfare for workers and staff | 63,050.00 | 936,106.00 | 869,795.00 | 129,361.00 |
| (3) Social insurance | 199,344.99 | 5,790,260.78 | 5,989,605.77 | - |
| Including: Medical insurance | 167,818.74 | 5,653,278.75 | 5,821,097.49 | |
| Work injury insurance | 13,139.34 | 8,075.81 | 21,215.15 | |
| Maternity insurance | 18,386.91 | 128,906.22 | 147,293.13 | |
| (4) Housing accumulation fund | 614,780.58 | 19,347,873.62 | 19,962,654.20 | |
| (5) Labor union expenditure and personnel education expense | 344,711.87 | 1,598,120.87 | 1,567,969.08 | 374,863.66 |
| (6) Short-term paid absence | ||||
| (7) Short-term profit sharing plan | ||||
| Total | 54,801,004.42 | 156,245,639.64 | 142,058,245.03 | 68,988,399.03 |
| Item | Year-end balance of last year | Current increased | Current Decreased | Ending Balance |
| Basic endowment insurance | 394,280.13 | 6,476,552.40 | 6,870,832.53 | |
| Unemployment insurance | 12,849.98 | 35,874.01 | 48,723.99 | |
| Enterprise annuity | 298.00 | 5,265,071.94 | 4,826,865.00 | 438,504.94 |
| Item | Year-end balance of last year | Current increased | Current Decreased | Ending Balance |
| Other | - | 425,368.21 | 425,368.21 | |
| Total | 407,428.11 | 12,202,866.56 | 12,171,789.73 | 438,504.94 |
| Tax Item | Ending Balance | Year-end balance of last year |
| VAT | 3,086,053.57 | 15,053,172.64 |
| Environmental tax | 32,646.98 | 14,373.02 |
| Corporate income tax | 621,938.34 | 3,407,074.02 |
| Personal Income Tax | 2,726,195.98 | 1,550,858.52 |
| Urban maintenance and construction tax | 44,879.53 | 101,751.28 |
| Property tax | 996,166.86 | 996,166.86 |
| Stamp duty | 33,443.10 | 252,230.52 |
| Local education surcharge | 16,824.46 | 33,593.64 |
| Education surcharge | 25,236.71 | 50,390.44 |
| Other | 42,872.73 | 309,662.83 |
| Total | 7,626,258.26 | 21,769,273.77 |
| Item | Ending Balance | Year-end balance of last year |
| Interest payable | ||
| Other account payable | 27,020,944.95 | 43,691,472.06 |
| Total | 27,020,944.95 | 43,691,472.06 |
| Item | Ending Balance | Year-end balance of last year |
| Engineering funds | 7,759,695.06 | 13,045,165.88 |
| Quality assurance | 6,675,270.29 | 6,825,475.53 |
| Accrued expenses | 6,625,316.75 | 1,0301,185.40 |
| Item | Ending Balance | Year-end balance of last year |
| Material payment | 147,487.65 | |
| Equipment fund | 3,215,000.00 | 3,718,050.65 |
| Other | 2,598,175.20 | 9,801,594.60 |
| Total | 27,020,944.95 | 43,691,472.06 |
| Item | Year-end balance of last year | Current increased | Current Decreased | Ending Balance | Reason |
| Pending litigation | 26,646,056.28 | 6,722,548.00 | 19,923,508.28 | ||
| Other | |||||
| Total | 26,646,056.28 | 6,722,548.00 | 19,923,508.28 |
| Item | Year-end balance of last year | Current increased | Current Decreased | Ending Balance | Reasons |
| Item | Year-end balance of last year | Current increased | Current Decreased | Ending Balance | Reasons |
| Government subsidy | 108,507,683.52 | 14,727,025.59 | 93,780,657.93 | ||
| Total | 108,507,683.52 | 14,727,025.59 | 93,780,657.93 |
| Liability | Year-end balance of last year | Subsidy amount newly increased in the current period | Amount included in current profit and loss | Other change | Ending Balance | Assets related/income related |
| Government subsidies for low-nitrogen equipment renovation | 25,165,130.64 | 516,675.96 | 24,648,454.68 | Assets related | ||
| Government subsidies for information construction projects | 86,666.60 | 61,176.48 | 25,490.12 | Assets related | ||
| Subsidies for the Motor Energy Efficiency Improvement Funding Scheme | 401,760.00 | 34,560.00 | 367,200.00 | Assets related | ||
| Support fund of recycling economy for sludge drying | 7,451,273.95 | 647,002.92 | 6,804,271.03 | Assets related | ||
| Treasury subsidies for sludge drying | 2,826,250.00 | 255,000.00 | 2,571,250.00 | Assets related | ||
| Special funds for energy conservation and emission | 684,223.30 | 114,037.32 | 570,185.98 | Assets related |
| reduction | ||||||
| Subsidy for quality promotion of the air environment in Shenzhen (note 1) | 67,262,379.03 | 4,731,818.16 | 3,736,754.75 | 58,793,806.12 | Assets related | |
| Cogeneration (note 2) | 4,630,000.00 | 4,630,000.00 | - | Assets related | ||
| Total | 108,507,683.52 | - | 6,360,270.84 | 8,366,754.75 | 93,780,657.93 |
| Item | Ending Balance | Year-end balance of last year |
| Amounts payable to other shareholders | 7,627.86 | |
| Total | 7,627.86 |
(26) Share capital
| Item | Year-end balance of last year | Changes in this period(+ -) | Ending Balance | ||||
| New shares issued | Bonus shares | Capitalizing from reserves | Other | Subtotal | |||
| Total shares | 602,762,596.00 | 602,762,596.00 | |||||
| Item | Year-end balance of last year | Current increased | Current Decreased | Ending Balance |
| Capital premium（Share premium） | 233,035,439.62 | 233,035,439.62 | ||
| Other capital reserve | 129,735,482.48 | 129,735,482.48 | ||
| Total | 362,770,922.10 | 362,770,922.10 |
(28) Other comprehensive income
| Item | Year-end balance of last year | Balance at year-begin | Current period | Ending Balance | |||||
| Account before income tax in the year | Less: written in other comprehensive income in previous period and carried forward to gains and losses in current period | Less: written in other comprehensive income in previous period and carried forward to retained earnings in current period | Less : income tax expense | Belong to parent company after tax | Belong to minority shareholders after tax | ||||
| 1. Other comprehensive income items which will not be reclassified subsequently to profit of loss | |||||||||
| Including: changes of the defined benefit plans that re-measured | |||||||||
| Other comprehensive income under equity method that cannot be transfer to gain/loss | |||||||||
| Change of fair value of investment in other equity instrument | -2,500,000.00 | -2,500,000.00 | |||||||
| Total other comprehensive income | -2,500,000.00 | -2,500,000.00 | |||||||
(29) Surplus reserve
| Item | Year-end balance of last year | Current increased | Current Decreased | Ending Balance |
| Legal surplus reserve | 310,158,957.87 | 310,158,957.87 | ||
| Discretionary surplus reserve | 22,749,439.73 | 22,749,439.73 | ||
| Total | 332,908,397.60 | 332,908,397.60 |
| Item | Current amount | Last-period amount |
| Retained profit of last year before adjusted | 706,830,892.54 | 679,429,935.81 |
| Total retained profit adjusted (increased with +, decreased with -) | 2,500,000.00 | |
| Retained profit at beginning of the year after adjusted | 706,830,892.54 | 681,929,935.81 |
| Add: net profit attributable to shareholders of parent company | 64,024,291.32 | 24,900,956.73 |
| Less: withdrawal of statutory surplus reserve | ||
| Common Stock dividend payable | 12,055,251.92 | |
| Retained profit at period-end | 758,799,931.94 | 706,830,892.54 |
| Item | Current amount | Last-period amount | ||
| Income | Cost | Income | Cost | |
| Main business | 982,484,377.16 | 794,326,472.79 | 1,215,058,062.82 | 1,061,104,493.35 |
| Other business | 2,769,454.42 | 197,337.60 | 7,519,891.71 | 812,220.50 |
| Total | 985,253,831.58 | 794,523,810.39 | 1,222,577,954.53 | 1,061,916,713.85 |
| Item | Current amount | Last-period amount |
| Item | Current amount | Last-period amount |
| Property tax | 2,149,484.33 | 2,821,267.33 |
| Travel tax | 15,266.56 | 31,316.56 |
| Land holding tax | 785,747.88 | 1,141,596.06 |
| Stamp duty | 625,730.48 | 924,912.41 |
| Urban maintenance and construction tax | 2,507,916.30 | 1,350,602.20 |
| Education surcharge | 1,413,635.81 | 1,120,703.52 |
| Local education surcharge | 935,569.77 | 63,814.32 |
| Environmental protection tax | 112,506.92 | 186,572.43 |
| Total | 8,545,858.05 | 7,640,784.83 |
| Item | Current amount | Last-period amount |
| Sludge treatment costs | 3,848,884.38 | 4,031,523.46 |
| Salary, welfare and social insurance | 655,091.29 | 996,151.70 |
| Social expenses | 233,663.28 | 268,359.94 |
| Agency engagement fee | 68,056.60 | 75,971.70 |
| Property insurance | 55,981.53 | 49,130.74 |
| Labor insurance fee | 23,561.59 | 27,960.33 |
| Inspection charges | 21,683.02 | 15,141.51 |
| Rental fee | 18,000.00 | 28,800.00 |
| Fleet cost | 15,284.63 | 30,638.59 |
| Housing fund | 14,746.52 | 24,528.10 |
| Food expenses | 11,900.00 | 16,800.00 |
| Travel expenses | 7,662.50 | 28,899.36 |
| Communication expenses | 5,400.00 | 5,400.00 |
| Total | 4,979,915.34 | 5,599,305.43 |
| Item | Current amount | Last-period amount |
| Wages | 62,913,189.30 | 58,981,116.34 |
| Rental fee | 7,243,936.24 | 6,580,207.65 |
| Depreciation | 6,453,519.80 | 5,649,591.19 |
| Item | Current amount | Last-period amount |
| Social expenses | 2,983,408.61 | 3,771,769.48 |
| Food expenses | 3,217,453.47 | 3,592,575.99 |
| Agency fee | 3,766,552.89 | 3,095,141.29 |
| Repairing cost | 1,191,409.25 | 2,969,577.00 |
| Eco fee | 244,376.90 | 2,106,321.81 |
| Fleet cost | 4,202,313.60 | 1,845,751.95 |
| Office fee | 1,369,300.09 | 1,814,835.07 |
| Board charges | 2,357,575.81 | 1,524,267.12 |
| Communication expenses | 1,201,372.17 | 1,215,924.18 |
| Amortization of intangible assets | 292,083.81 | 1,167,628.79 |
| Corporate culture fee | 1,175,121.33 | 1,131,607.97 |
| Property management fee | 989,244.87 | 976,311.67 |
| Business travel expenses | 710,951.65 | 961,610.72 |
| Fee for stock certificate | 676,422.39 | 897,478.35 |
| Other | 10,629,992.91 | 11,260,183.61 |
| Total | 111,618,225.09 | 109,541,900.18 |
| Item | Current amount | Last-period amount |
| Employee's salary | 8,242,704.84 | |
| Depreciation | 163,768.32 | |
| Amortization of intangible assets | 84,409.42 | |
| Total | 8,490,882.58 |
| Item | Current amount | Last-period amount |
| Interest expenses | 33,228,170.68 | 50,574,483.78 |
| Less: capitalized interest | 1,213,367.42 | 1,362,031.20 |
| Expenses interest | 32,014,803.26 | 49,212,452.58 |
| Less: interest income | 32,660,554.45 | 26,884,777.55 |
| Exchange loss (gains is listed with ”-”) | 407,513.25 | -88,809.42 |
| Item | Current amount | Last-period amount |
| Other | 171,579.98 | 71,842.43 |
| Total | -66,657.96 | 22,310,708.04 |
| Item | Current amount | Last-period amount |
| Government grants | 15,117,534.15 | 10,137,838.38 |
| Debt restructuring income | 7,593,783.90 | |
| Total | 22,711,318.05 | 10,137,838.38 |
| Item | Current amount | Last-period amount | Asset related / income related |
| VAT rebates | 1,283,570.70 | 3,734,989.57 | Income related |
| Subsidy for low-nitrogen transformation | 516,675.96 | 522,511.46 | Asset related |
| Support fund of recycling economy for sludge drying | 647,002.92 | 647,002.92 | Asset related |
| Treasury subsidies for sludge drying | 255,000.00 | 255,000.00 | Asset related |
| Subsidy for quality promotion of the air environment in Shenzhen | 4,731,818.16 | 3,567,560.63 | Asset related |
| Special funds for energy conservation and emission reduction | 114,037.32 | 114,037.32 | Asset related |
| Individual tax refund | 375,369.20 | Income related | |
| Enterprise unemployment insurance premium refund | 4,176,211.18 | Income related | |
| Information construction | 61,176.48 | 61,176.48 | Asset related |
| Funded of energy efficiency improvement for electric machine | 34,560.00 | 34,560.00 | Asset related |
| Employment and unemployment monitoring subsidy | 1,000.00 | 1,000.00 | Income related |
| Reward to encouraging small and medium-sized enterprise to growth as a scale-sized company | 27,816.00 | 200,000.00 | Income related |
| Supporting funds of office occupancy for listed companies | 1,822,300.00 | 1,000,000.00 | Income related |
| Special fund for the development | 500,000.00 | Income related |
| Item | Current amount | Last-period amount | Asset related / income related |
| of independent innovation industry | |||
| Qianhai Epidemic Prevention Support Special Fund | 448,791.00 | Income related | |
| Subsidy of further stable growth | 100,000.00 | Income related | |
| Job stabilization subsidy | 21,687.31 | Income related | |
| Preferential refund of education fees for comprehensive utilization of resources products and labor | 517.92 | Income related | |
| Total | 15,117,534.15 | 10,137,838.38 |
| Item | Current amount | Last-period amount |
| Long-term equity investment income by equity | -5,725,794.17 | -1,429,841.92 |
| Investment income from disposal of long-term equity investments | 33,534,881.55 | |
| Total | 27,809,087.38 | -1,429,841.92 |
| Item | Current amount | Last-period amount |
| Bad debt loss of accounts receivable | -568,572.76 | |
| Bad debt loss of other receivables | 12,000.00 | |
| Total | -556,572.76 |
| Item | Current amount | Last-period amount |
| Loss of inventory fall | -7,399,234.51 | |
| Fixed asset impairment loss | -14,045,534.44 | |
| Construction in progress impairment loss | -22,273,910.43 | |
| Total | -43,718,679.38 |
(41) Income from disposal of assets
| Item | Current amount | Last-period amount | Amount reckoned into non-recurring gains/losses of the Period |
| Profit and loss on disposal of fixed assets | -1,109,128.91 | -279,099.94 | -1,109,128.91 |
| Total | -1,109,128.91 | -279,099.94 | -1,109,128.91 |
| Item | Current amount | Last-period amount | Amount reckoned into non-recurring gains/losses of the Period |
| Reversal of accrual liabilities | 6,584,816.78 | 6,584,816.78 | |
| Sales of carbon emissions gains | 2,383,489.15 | ||
| Other | 500.00 | 3,217,727.78 | 500.00 |
| Total | 6,585,316.78 | 5,601,216.93 | 6,585,316.78 |
| Item | Current amount | Last-period amount | Amount reckoned into non-recurring gains/losses of the Period |
| External donation | 10,000.00 | 10,000.00 | 10,000.00 |
| Loss of scrap from non-current assets | 34,990.00 | 248,009.08 | 34,990.00 |
| Other | 108,729.62 | 12,339.71 | 108,729.62 |
| Total | 153,719.62 | 270,348.79 | 153,719.62 |
| Item | Current amount | Last-period amount |
| Current income tax | 1,361,203.90 | 3,213,516.91 |
| Item | Current amount | Last-period amount |
| Deferred income tax | - | -134,725.43 |
| Total | 1,361,203.90 | 3,078,791.48 |
| Item | Current amount |
| Total profit | 69,285,992.39 |
| Income tax measured by statutory/applicable tax rate | 17,321,399.23 |
| Impact on subsidiary with different rates adaption | 148,307.73 |
| Impact on cost, expenses and losses that unable to deducted | -15,643,367.32 |
| Effect of deductible losses of deferred tax assets unconfirmed at the earlier stage of use | -15,975,634.80 |
| Impact on deductible temporary differences or losses deductible which was un-recognized as deferred income tax assets | 30,145,175.59 |
| Impact of R&D Expenses Plus Deduction | -931,706.20 |
| The impact of investment income under the equity method | 1,431,448.54 |
| The impact of asset impairment losses from previous years recognized in the current period | -15,134,418.87 |
| Income tax expenses | 1,361,203.90 |
| Item | Current amount | Last-period amount |
| Consolidated net profit attributable to ordinary shareholders of the parent company | 64,024,291.32 | 24,900,956.72 |
| Weighted average number of common shares issued by the company | 602,762,596.00 | 602,762,596.00 |
| Basic earnings per share | 0.1062 | 0.0413 |
| Item | Current amount | Last-period amount |
| Consolidated net profit attributable to ordinary shareholders of the parent company (diluted) | 64,024,291.32 | 24,900,956.72 |
| Weighted average number of common shares issued by the company (diluted) | 602,762,596.00 | 602,762,596.00 |
| Diluted earnings per share | 0.1062 | 0.0413 |
| Item | Current amount | Last-period amount |
| Interest income | 30,591,982.78 | 23,690,836.55 |
| Government subsidy | 7,639,374.06 | 39,298,273.00 |
| Intercourse funds | 7,399,077.47 | 7,534,398.30 |
| Other | 320,135.7 | 8,214,304.81 |
| Total | 45,950,570.01 | 78,737,812.66 |
| Item | Current amount | Last-period amount |
| Out-of-pocket expenses | 48,434,930.11 | 48,649,620.63 |
| Intercourse funds | 9,982,836.03 | 9,032,309.97 |
| Total | 58,417,766.14 | 57,681,930.60 |
| Item | Current amount | Last-period amount |
| debt repayment received from Huidong Server | 1,144,800.00 | 1,489,600.00 |
| Interest from financial products | 6,763,164.80 | |
| Total | 7,907,964.80 | 1,489,600.00 |
| Item | Current amount | Last-period amount |
| Received from other company | 170,000,000.00 | 5,170,000.00 |
| Total | 170,000,000.00 | 5,170,000.00 |
| Item | Current amount | Last-period amount |
| Other account paid | 887,962.40 | |
| Total | 887,962.40 |
| Supplementary information | Current amount | Last-period amount |
| 1. Net profit adjusted to cash flow of operation activities | ||
| Net profit | 67,924,788.49 | 25,692,942.62 |
| Add: credit impairment loss | 556,572.76 | |
| Assets impairment provision | 43,718,679.38 | |
| Depreciation of fixed assets | 71,493,650.27 | 105,561,161.38 |
| Amortization of intangible assets | 908,122.77 | 2,429,067.75 |
| Amortization of long-term deferred expenses | 261,513.71 | 85,542.87 |
| Loss from disposing fixed assets, intangible assets and other long-term assets (income listed with “-“) | 1,109,128.91 | 279,099.94 |
| Loss on retirement of fixed assets (gain is listed with “-”) | 34,990.00 | 248,009.08 |
| Loss from changes of fair value (income listed with “-“) | ||
| Financial expense (gain listed with “-”) | 32,014,803.26 | 48,887,169.51 |
| Investment loss (gain listed with “-”) | 27,809,087.38 | 1,429,841.92 |
| Decrease of deferred income tax asset( (increase is listed with “-”) | -134,725.43 | |
| Decrease of inventory (increase is listed with “-”) | ||
| Decrease of inventory (increase is listed with “-”) | 22,175,312.08 | 5,650,701.78 |
| Decrease of operating receivable accounts (increase is listed with “-”) | 47,614,892.79 | -34,099,159.37 |
| Increase of operating payable accounts (decrease is listed with “-”) | -39,612,534.43 | 13,462,259.61 |
| Other | -14,727,025.59 | 32,895,424.19 |
| Supplementary information | Current amount | Last-period amount |
| Net cash flow arising from operating activities | 260,725,409.02 | 202,943,908.61 |
| 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: | ||
| Balance of cash at period end | 397,101,272.21 | 381,490,000.96 |
| Less: Balance of cash at end of the previous year | 381,490,000.96 | 574,956,611.70 |
| Add: Ending balance of cash equivalent | 367,500,000.00 | 390,000,000.00 |
| Less:Balance of cash equivalent at end of the previous year | 390,000,000.00 | 340,000,000.00 |
| Net increasing of cash and cash equivalents | -6,888,728.75 | -143,466,610.74 |
| Item | Amount |
| Cash or cash equivalents received by subsidiaries disposal in the current period | 104,980,000.00 |
| Less: cash and cash equivalents held by the company on the day when control is lost | 72,567,163.02 |
| Net cash received from disposal of subsidiaries | 32,412,836.98 |
| Item | Ending Balance | Year-end balance of last year |
| I. Cash | 397,101,272.21 | 381,490,000.96 |
| Including: Cash on hand | 101,163.11 | 84,307.60 |
| Bank savings available for payment needed | 397,000,109.10 | 381,339,856.01 |
| Other monetary capital available for payment needed | 65,837.35 | |
| Account due from central bank available for payment |
| Item | Ending Balance | Year-end balance of last year |
| Amount due from banks | ||
| Amount call loans to banks | ||
| II. Cash equivalent | 367,500,000.00 | 390,000,000.00 |
| including: bond investment due within three months | ||
| III. Balance of cash and cash equivalent at period-end | 764,601,272.21 | 771,490,000.96 |
| Including: Cash and cash equivalent of the parent company or subsidiaries with use restricted |
| Item | Ending book value | Opening book value | Restricted reason |
| Monetary Fund | 1,719,853.88 | Cash deposit |
| Item | Balance of foreign currency at period-end | Conversion rate | Balance of RMB converted at period-end |
| Monetary fund | |||
| Including: USD | 839,391.70 | 6.52 | 5,476,946.90 |
| Euro | 1,017.87 | 8.02 | 8,168.10 |
| HKD | 448,317.53 | 0.84 | 377,307.14 |
| Type | Amount | Balance sheet | The amount included in current gain/loss or loss resulting from related costs off-setting | Item of the amount included in current gain/loss or loss resulting from related costs off-setting | |
| Current amount | Last-period amount | ||||
| Subsidy for low-nitrogen transformation | 458,768.16 | Other income | 458,768.16 | 522,511.46 | 458,768.16 |
| Support fund of | 647,002.92 | Other | 647,002.92 | 647,002.92 | 647,002.92 |
| Type | Amount | Balance sheet | The amount included in current gain/loss or loss resulting from related costs off-setting | Item of the amount included in current gain/loss or loss resulting from related costs off-setting | |
| Current amount | Last-period amount | ||||
| recycling economy for sludge drying | income | ||||
| Treasury subsidies for sludge drying | 255,000.00 | Other income | 255,000.00 | 255,000.00 | 255,000.00 |
| Subsidy for quality promotion of the air environment in Shenzhen | 4,789,725.96 | Other income | 4,789,725.96 | 3,567,560.63 | 4,789,725.96 |
| Special funds for energy conservation and emission reduction | 114,037.32 | Other income | 114,037.32 | 114,037.32 | 114,037.32 |
| Information construction | 61,176.48 | Other income | 61,176.48 | 61,176.48 | 61,176.48 |
| Funded of energy efficiency improvement for electric machine | 34,560.00 | Other income | 34,560.00 | 34,560.00 | 34,560.00 |
| Total | 6,360,270.84 | 6,360,270.84 | 5,201,848.81 | 6,360,270.84 | |
| Type | Amount | The amount included in current gain/loss or loss resulting from related costs off-setting | Item of the amount included in current gain/loss or loss resulting from related costs off-setting | |
| Current amount | Last-period amount | |||
| VAT refund | 1,283,570.70 | 1,283,570.70 | 3,734,989.57 | 1,283,570.70 |
| Individual tax refund | 375,369.20 | 375,369.20 | - | 375,369.20 |
| Enterprise unemployment insurance premium refund | 4,176,211.18 | 4,176,211.18 | - | 4,176,211.18 |
| Employment and unemployment monitoring subsidy | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 |
| Reward to encouraging small and medium-sized enterprise to growth as a scale-sized company | 27,816.00 | 27,816.00 | 200,000.00 | 27,816.00 |
| Type | Amount | The amount included in current gain/loss or loss resulting from related costs off-setting | Item of the amount included in current gain/loss or loss resulting from related costs off-setting | |
| Current amount | Last-period amount | |||
| Supporting funds of office occupancy for listed companies | 1,822,300.00 | 1,822,300.00 | 1,000,000.00 | 1,822,300.00 |
| Special fund for the development of independent innovation industry | 500,000.00 | 500,000.00 | - | 500,000.00 |
| Qianhai Epidemic Prevention Support Special Fund | 448,791.00 | 448,791.00 | - | 448,791.00 |
| Subsidy of further stable growth | 100,000.00 | 100,000.00 | - | 100,000.00 |
| Job stabilization subsidy | 21,687.31 | 21,687.31 | - | 21,687.31 |
| Preferential refund of education fees for comprehensive utilization of resources products and labor | 517.92 | 517.92 | - | 517.92 |
| Total | 8,757,263.31 | 8,757,263.31 | 4,935,989.57 | 8,757,263.31 |
VI. Change of consolidate scopeDuring the reporting period, the company established a new subsidiary and disposed of a holdingcompany. The newly established company is under the control of the company and is included inthe scope of the consolidated statement during the reporting period. For details, please refer toNote 8. (1) Equity in subsidiaries.
VII. Equity in other entity
(1) Equity in subsidiaries
1. Composition of the Group
| Subsidiary | Main operation place | Shareholding ratio (%) | Acquired way | |
| Directly | Indirectly | |||
| Shennandian (Zhongshan) Power Co., Ltd. (“Zhongshan Power”) | Zhongshan | 55.00 | 25.00 | Establishment |
| Shenzhen Shennandian Gas Turbine Engineering Technology Co., Ltd. (“Engineering Company”) | Shenzhen | 60.00 | 40.00 | Establishment |
| Shenzhen Shennandian Environmental Protection Co., Ltd. (“Environmental Protection Company”) | Shenzhen | 70.00 | 30.00 | Establishment |
| Shenzhen Xiefu Energy Co., Ltd. ("Shenzhen Xiefu") | Shenzhen | 50.00 | - | Establishment |
| Shenzhen New Power Industry Co., Ltd. ("New Power") | Shenzhen | 75.00 | 25.00 | Establishment |
| Shennan Energy (Singapore) Co., Ltd. ("Singapore Company") | Singapore | 100.00 | - | Establishment |
| Hong Kong Syndisome Co., Ltd. ("Syndisome ") | Hong Kong | - | 100.00 | Establishment |
| Zhongshan Shennandian Storage Co., Ltd. ("Shenzhen Storage") | Zhongshan | 80.00 | Establishment | |
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | Zhuhai | 99.96 | - | Establishment |
| Subsidiary | Share-holding ratio of minority (%) | Gains/losses attributable to minority in the Period | Ending equity of minority |
| Subsidiary | Share-holding ratio of minority (%) | Gains/losses attributable to minority in the Period | Ending equity of minority |
| Shennandian (Zhongshan) Power Co., Ltd. (“Zhongshan Power”) | 20.00 | 7,138,144.59 | -11,729,613.03 |
3. Main finance of the important non-wholly-owned subsidiary
| Subsidiary | Ending Balance /RMB | Year-end balance of last year / RMB | ||||||||||
| Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liability | Current assets | Non-current assets | Total assets | Current liability | Non-current liability | Total liability | |
| Shennandian (Zhongshan) Power Co., Ltd. (“Zhongshan Power”) | 63,887,511.26 | 486,793,086.63 | 550,680,597.89 | 603,862,934.78 | 5,465,728.24 | 609,328,663.02 | 67,810,211.56 | 529,800,968.49 | 597,611,180.05 | 686,312,294.78 | 5,637,673.36 | 691,949,968.14 |
| Subsidiary | Current amount/ RMB | Last-period amount/ RMB | ||||||
| Operation Income | Net profit | Total comprehensive income | Cash flow from operation activity | Operation Income | Net profit | Total comprehensive income | Cash flow from operation activity | |
| Shennandian (Zhongshan) Power Co., Ltd. (“Zhongshan Power”) | 202,539,109.51 | 35,690,722.96 | 35,690,722.96 | 114,269,754.95 | 171,254,894.37 | 656,087.40 | 656,087.40 | 88,204,730.40 |
(2) Equity in joint venture and cooperative enterprise
1. Major joint venture and cooperative enterprise
| Name of joint venture or joint venture | Main operation place | Main business activities | Share-holding ratio（%） | Accounting treatment on investment for joint venture and cooperative enterprise | |
| Directly | Indirectly | ||||
| Huidong Server Port Comprehensive Development Co., Ltd. | Renshan Town, Huidong County | Wharf operation | 40.00 | Equity method | |
| Ending Balance /Current amount | Ending balance of previous year/Last-period amount | |
| Total book value of investment | 8,893,408.86 | 14,619,203.03 |
| Total numbers measured by share-holding ratio | ||
| Net profit | -5,725,794.17 | -1,429,841.92 |
| Other comprehensive income | ||
| Total comprehensive income | -5,725,794.17 | -1,429,841.92 |
Company will evaluate the credit risk of the new customer, including the external credit rating and, in some cases, the bank creditcertificate (when this information is available). The company has set a credit limit for each customer, which is the maximum amountwithout additional approval.
The company ensures that the company's overall credit risk is within a controllable range through quarterly monitoring of existingcustomer credit ratings and monthly review of accounts receivable aging analysis. When monitoring the credit risk of customers, theyare grouped according to their credit characteristics. Customers rated as "high risk" will be placed on the restricted customer list, andonly with additional approval, the company can sell them on credit in the future, otherwise they must be required to pay thecorresponding amount in advance.
(2) Market risk
Market risks of financial instruments refers to the risks that the fair value or future cash flow of such financialinstruments will fluctuate due to the changes in market prices, including FX risks, interest rate risks and otherprice 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 floatinginterest rate bank loans (see details in Note V (17); Note V(36).Interest rate risk sensitivity analysis:
The interest rate risk sensitivity analysis is based on the following assumptions:
Changes in market interest rates affect the interest income or expense of financial instruments with variable interest rate; Forfinancial instruments with fixed rate by fair value measurement, the changes in market interest rates only affect their interest incomeor expense; For derivative financial instruments designated as hedging instruments, the changes in market interest rates affect theirfair value, and all interest rate hedging prediction is highly effective; Calculate the changes in fair value of derivative financialinstruments and other financial assets and liabilities by using the cash flow discount method at the market interest rate at the balancesheet date.
On the basis of above assumptions, in case that other variables keep unchanged, the pre-tax effect of possible reasonable changes ininterest rates on current profits and losses and shareholders' equity is as follows:
| Rate changes | Current year | Last year | ||
| Impact on profit | Impact on shareholders’ equity | Impact on profit | Impact on shareholders’ equity | |
| 5% increased | -14,399.25 | -14,399.25 | -1,192,987.50 | -1,192,987.50 |
| 5% decreased | 14,399.25 | 14,399.25 | 1,192,987.50 | 1,192,987.50 |
(3) Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation of settlement by means of cash or otherfinancial assets. The Company's policy is to ensure that it has sufficient cash to repay the debts due. Liquidity risk is centrallycontrolled by the Company's financial department. The financial department monitors cash balances, marketable securities that canbe cashed at any time, and rolling forecasts of cash flows in the next 12 months to ensure that the company has sufficient funds torepay debts under all reasonable forecasts.
IX. Related party and related party transactions
(1) Parent company of the Group
Share holding proportion of any shareholder of the Company didn't reach 50%, and couldn't form a holding relationship of theCompany through any methods. The Company has no parent company.
(2) Subsidiaries of the Company
See details in Note VII. (1) Equity in other entity
(3) Joint venture and affiliated enterprise of the Group
See details in Note VII. (2) Equity in other entity
(4) Other related party
| Other related party | Relationship with the Company |
| Shenzhen Energy Group Co., Ltd. (“Shenzhen Energy Group” for short) | Legal person holding more than 5% of the company's shares |
| Shenzhen Guangju Industrial Co., Ltd. | Legal person holding more than 5% of the company's shares |
| HONG KONG NAM HOI (INTERNATIONAL) LTD. | Legal person holding more than 5% of the company's shares |
| Shenzhen Capital Holdings Co., Ltd. | Legal person indirectly holding more than 5% of the company's shares through Shenzhen Energy Group |
| Wanhe Securities Co., Ltd. | Other related parties |
| Shenzhen Energy Group Co., Ltd. | Other related parties |
| Fuel branch of Shenzhen Energy Group Co., Ltd. | Other related parties |
| Shenzhen Energy and Gas Investment Holding Co., Ltd. | Other related parties |
| Directors, supervisors and senior management of the company | Key managers |
| Shennandian (Dongguan) Weimei Power Co., Ltd. | Other related parties |
1. Related party guarantees
The company as guarantor:
| Guaranteed | Amount guaranteed | Starting date | Maturity date | Whether the guarantee has been fulfilled (Y/N) |
| Shennandian (Dongguan) Weimei Power Co., Ltd. | 200,000,000.00 | 2019/6/24 | 2020/4/30 | Y |
| Shennandian (Dongguan) Weimei Power Co., Ltd. | 200,000,000.00 | 2019/6/26 | 2020/4/30 | Y |
| Total | 400,000,000.00 |
| Item | Current amount | Last-period amount |
| Remuneration of key manager | 5,301,000 yuan | 5,404,200 yuan |
| Item | Related party | Ending Balance | Year-end balance of last year |
| Other account receivable | |||
| Huidong Server | 14,740,501.44 | 9,060,361.44 | |
| Huidong Server managed account | 6,634,071.38 | 13,114,012.69 | |
| …… | Total | 21,374,572.82 | 22,174,374.13 |
As of the date of this report, the company has no contingencies that need to be disclosed.
(1) Important non-adjusting matters
(2) Note of other events occurring after the balance sheet date
(3) Segment information
1. Determining basis and accounting policies of the report divisions
According to the Company’s internal organizational structure, management requirements and internal reportingsystem, 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 ofthese 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 wheneach division reports to the management. These measurement bases are consistent with the accounting and measurement bases usedwhen preparing financial statements.
2. Financial information of the reportable segment
| Item | Power supply & heating | Fuel trading | Other | Fuel trading | Total |
| Operation income | 887,187,171.53 | 1,186,761.96 | 103,908,079.24 | 7,028,181.15 | 985,253,831.58 |
| Operation cost | 737,261,316.92 | 196,137.60 | 69,677,268.14 | 12,610,912.27 | 794,523,810.39 |
| Total assets | 3,678,545,994.41 | 273,651,683.95 | 199,002,480.23 | 1,130,369,228.53 | 3,020,830,930.06 |
| Total liabilities | 1,667,458,834.45 | 25,630,043.74 | 39,367,001.20 | 799,367,470.92 | 933,088,408.47 |
| Age | Ending Balance | Year-end balance of last year |
| Within 1year | 24,673,115.32 | 31,821,804.69 |
| Over 3 years | 2,889.00 | |
| Subtotal | 24,673,115.32 | 31,824,693.69 |
| Less: Bad debt provision | ||
| Total | 24,673,115.32 | 31,824,693.69 |
2. According to accrual method for bad debts
| Category | Ending Balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| Bad debt by single provision | |||||
| Provision for bad debts by portfolio of credit risk | 24,673,115.32 | 24,673,115.32 | |||
| Total | 24,673,115.32 | 24,673,115.32 | |||
| Category | Ending balance of previous year | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| Bad debt by single provision | |||||
| Provision for bad debts by portfolio of credit risk | 31,824,693.69 | 31,824,693.69 | |||
| Total | 31,824,693.69 | 31,824,693.69 | |||
| Name | Ending Balance | ||
| Account receivable | Bad debt provision | Accrual ratio （%） | |
| Grid accounts receivable | 24,673,115.32 | ||
| Total | 24,673,115.32 | ||
| Item | Ending Balance | Year-end balance of last year |
| Item | Ending Balance | Year-end balance of last year |
| Interest receivable | ||
| Dividend receivable | ||
| Other account receivable | 598,044,417.89 | 873,861,071.55 |
| Total | 598,044,417.89 | 873,861,071.55 |
| Age | Ending Balance | Year-end balance of last year |
| Within 1year | 6,702,182.44 | 239,265,595.88 |
| 1 to 2 years | 35,844,839.81 | 89,264,291.59 |
| 2 to 3 years | 10,166,211.56 | 100,729,690.00 |
| Over 3 years | 572,660,827.52 | 471,931,137.5 |
| Subtotal | 625,374,061.33 | 901,190,714.99 |
| Less: Bad debt provision | 27,329,643.44 | 27,329,643.44 |
| Total | 598,044,417.89 | 873,861,071.55 |
| Category | Ending Balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| Bad debt by single provision | 28,023,159.22 | 4.48 | 27,329,643.44 | 97.53 | 693,515.78 |
| Provision for bad debts by portfolio of credit risk | 597,350,902.11 | 95.52 | - | 597,350,902.11 | |
| Total | 625,374,061.33 | 100.00 | 27,329,643.44 | 4.37 | 598,044,417.89 |
| Category | Ending balance of previous year | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| Category | Ending balance of previous year | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| Bad debt by single provision | 28,023,159.22 | 3.11 | 27,329,643.44 | 97.53 | 693,515.78 |
| Provision for bad debts by portfolio of credit risk | 873,167,555.77 | 96.89 | - | 873,167,555.77 | |
| Total | 901,190,714.99 | 100.00 | 27,329,643.44 | 3.03 | 873,861,071.55 |
| Name | Ending Balance | |||
| Book balance | Bad debt provision | Accrual ratio （%） | Accrual reasons | |
| Individual income tax | 2,470,039.76 | 2,470,039.76 | 100.00 | Un-collectable in excepted |
| Dormitory amount receivable | 2,083,698.16 | 1,736,004.16 | 83.31 | Un-collectable in excepted |
| Huiyang Kangtai Industrial Company | 14,311,626.70 | 14,311,626.70 | 100.00 | Un-collectable in excepted |
| Beneficiary fund dividends (personal receivables) | 7,498,997.87 | 7,498,997.87 | 100.00 | Un-collectable in excepted |
| Deposit receivable | 1,658,796.73 | 1,312,974.95 | 79.15 | Un-collectable in excepted |
| Total | 28,023,159.22 | 27,329,643.44 | 97.53 | |
| Name | Ending Balance | ||
| Other account receivable | Bad debt provision | Accrual ratio （%） | |
| Including: deposit and security deposit | 93,118.19 | ||
| Reserve fund | 141,771.66 | ||
| Withholding and Payment | 888,853.81 | - | |
| Other | 160,831.32 | - | |
| Name | Ending Balance | ||
| Other account receivable | Bad debt provision | Accrual ratio （%） | |
| Accounts between related parties within the scope of consolidation | 596,066,327.13 | - | |
| Total | 597,350,902.11 | ||
| Bad debt provision | Phases I | Phases II | Phases III | Total |
| Expected credit losses over next 12 months | Expected credit losses for the entire duration (without credit impairment occurred) | Expected credit losses for the entire duration (with credit impairment occurred) | ||
| Balance at year-begin | 27,329,643.44 | 27,329,643.44 | ||
| Balance at year-begin of the period | 27,329,643.44 | 27,329,643.44 | ||
| ——Turn to phase II | ||||
| ——Turn to phase III | ||||
| ——Return to Phase II | ||||
| ——Return to Phase I | ||||
| Current accrual | ||||
| Current switch back | ||||
| Rewrite in the period | ||||
| Write-off in the period | ||||
| Other changes | ||||
| Ending Balance | 27,329,643.44 | 27,329,643.44 |
| Nature | Ending book balance | Book balance at last year-end |
| Related party transactions | 596,066,327.13 | 866,978,723.13 |
| Dormitory receivable | 2,083,698.16 | 2,083,698.16 |
| Deposit receivable | 1,658,753.42 | 1,658,796.73 |
| Personal money | 9,969,037.63 | 10,008,932.63 |
| other | 15,596,244.99 | 20,460,564.34 |
| Subtotal | 625,374,061.33 | 901,190,714.99 |
| Less: Bad debt provision | 27,329,643.44 | 27,329,643.44 |
| Total | 598,044,417.89 | 873,861,071.55 |
| Item | Ending Balance | Year-end balance of last year | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Investment in subsidiary | 597,936,200.00 | 347,745,035.00 | 250,191,165.00 | 691,982,849.76 | 388,641,684.76 | 303,341,165.00 |
| Total | 597,936,200.00 | 347,745,035.00 | 250,191,165.00 | 691,982,849.76 | 388,641,684.76 | 303,341,165.00 |
| The invested entity | Year-end balance of last year | Current increased | Current Decreased | Ending Balance | Impairment provision accrual in the Period | Period-end balance of depreciation reserves |
| Shenzhen Xiefu Oil Supply Company | 26,650,000.00 | 26,650,000.00 | ||||
| Shennan Energy Singapore Company | 6,703,800.00 | 6,703,800.00 | ||||
| Shenzhen New Power Industry Co., Ltd. | 71,270,000.00 | 71,270,000.00 | ||||
| Shennandian (Zhongshan) Power Co., Ltd. | 410,740,000.00 | 410,740,000.00 | 347,745,035.00 | |||
| Shenzhen Shennandian | 6,000,000.00 | 6,000,000.00 |
| The invested entity | Year-end balance of last year | Current increased | Current Decreased | Ending Balance | Impairment provision accrual in the Period | Period-end balance of depreciation reserves |
| Gas Turbine Engineering Technology Co., Ltd. | ||||||
| Shennandian (Dongguan) Weimei Power Co., Ltd. | 115,319,049.76 | 115,319,049.76 | -40,896,649.76 | |||
| Shenzhen Shennandian Environmental Protection Co., Ltd. | 55,300,000.00 | 55,300,000.00 | ||||
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | 21,272,400.00 | 21,272,400.00 | ||||
| Total | 691,982,849.76 | 21,272,400.00 | 115,319,049.76 | 597,936,200.00 | -40,896,649.76 | 347,745,035.00 |
| Item | Current amount | Last-period amount | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 309,680,939.69 | 344,087,651.19 | 311,287,934.22 | 377,618,823.17 |
| Other business | 66,299,908.86 | 6,677,789.32 | 94,716,587.06 | 10,591,679.27 |
| Total | 375,980,848.55 | 350,765,440.51 | 406,004,521.28 | 388,210,502.44 |
| Item | Current amount | Last-period amount |
| Investment income from disposal of long-term equity investments | -14,432,400.00 | |
| Total | -14,432,400.00 |
| Item | Amount | Note |
| Gains and losses from disposal of non-current assets | -1,144,118.91 | |
| Tax refund or mitigate due to examination-and-approval beyond power or without official approval document | ||
| Governmental subsidy reckoned into current gains/losses(not including the subsidy enjoyed in quota or ration, which are closely relevant to enterprise’s normal business | 13,833,445.53 | |
| Capital occupancy expense, collected from non-financial enterprises and recorded in current gains and losses | ||
| Income from the exceeding part between investment cost of the Company paid for obtaining subsidiaries, associates and joint-ventures and recognizable net assets fair value attributable to the Company when acquiring the investment | ||
| Gains and losses from exchange of non-monetary assets | ||
| Gains and losses from assets under trusted investment or management | ||
| Various provision for impairment of assets withdrew due to act of God, such as natural disaster | ||
| Gains and losses from debt restructuring | 7,593,783.90 | |
| Enterprise restructuring costs, such as expenses for staff placement, integration costs, etc | ||
| Gains and losses of the part arising from transaction in which price is not fair and exceeding fair value | ||
| Current net gains and losses occurred from period-begin to combination day by subsidiaries resulting from business combination under common control | ||
| Gains and losses arising from contingent proceedings irrelevant to normal operation of the Company | 6,584,816.78 | |
| Switch-back of provision of impairment of account receivable which are treated with separate depreciation test | ||
| Gains and losses obtained from external trusted loans |
| Item | Amount | Note |
| Gains and losses arising from change of fair value of investment real estate whose follow-up measurement are conducted according to fair value pattern | ||
| Affect on current gains and losses after an one-time adjustment according to requirements of laws and regulations regarding to taxation and accounting | ||
| Trust fee obtained from trust operation | ||
| Other non-operating income and expenditure except for the aforementioned items | -118,229.62 | |
| Other gains and losses items complying with definition for non-recurring gains and losses | 33,534,881.55 | Note |
| Subtotal | 60,284,579.23 | |
| Less: impact on income tax | 152,683.61 | |
| Less: impact on minority equity | 3,708,642.89 | |
| Total | 56,423,252.73 |
| Profit in the Period | Weighted average ROE (%)） | EPS | |
| Basic EPS | Diluted EPS | ||
| Net profit attributable to shareholders of the listed company | 3.1465 | 0.1062 | 0.1062 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | 0.3736 | 0.0126 | 0.0126 |