深圳南山热电股份有限公司2021年年度报告全文
深圳南山热电股份有限公司
Shenzhen Nanshan Power Co., Ltd.
Annual Report 2021
March 2022
深圳南山热电股份有限公司2021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 and person in charge ofaccounting organ (chief accountants)- deputy GM Shang Ying(act for financialworks) guarantee that the Financial Report of the annual report disclosed istruthful, accurate and complete.
All directors are attended the Board Meeting for annual report deliberation.
The Company plans to pay no cash dividends, send no bonus shares and not toincrease share capital by converting from public reserves this 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. Investors are advised to read thefull text of the Report carefully.
深圳南山热电股份有限公司2021年年度报告全文
Contents
Section I Important Notice, Contents and Interpretation ...... 2
Section II Company Profile and Main Financial Indexes ...... 7
Section IIIManagement Discussion and Analysis ...... 12
Section IV Corporate Governance ...... 38
Section V Enviornmental and Social Reponsibility ...... 64
Section VI Important Matters ...... 67
Section VII Changes in Shares and Particular about Shareholders ...... 75
Section VIII Preferred Stock ...... 83
Section IX Bonds ...... 84
Section X Finanacial Report ...... 85
深圳南山热电股份有限公司2021年年度报告全文
Document Catalog for Review
I. Original Annual Report of 2021 carrying the signature of the legal representative of the CompanyII. Financial statements with signature and seal of Person in charge of the Company, person in charge of accounting works and personin 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 Dailyduring the reporting period.V. The place where the document placed: Shenzhen Stock Exchange, Office of Board of Directors of the Company.
深圳南山热电股份有限公司2021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 | Refers to | Shenzhen Capital Holdings Co., Ltd. |
| SZ Energy Group | Refers to | Shenzhen Energy Group Co., Ltd. |
| Liaoyuan Environmental Protection Liaoyuan Environmental Protection | Refers to | Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. |
| Zhuozhi Fund | Refers to | Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) |
| Shen Nan Dian Zhongshan Company | Refers to | Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. |
| 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. |
| 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 |
| 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 |
深圳南山热电股份有限公司2021年年度报告全文
| Reporting period | Refers to | 1 January 2021 to 31 December 2021 |
深圳南山热电股份有限公司2021年年度报告全文
Section II. Company Profile and Main Financial IndexesI. 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 | ||
| Historical changes of registered address | N/A | ||
| 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 | |||
II. Person/Way to contact
| Secretary to the BOD | Rep. of security affairs | |
| Name | Zou Yi | |
| Contact add. | 16/F-17/F, Hantang Building, OCT, Nanshan District, Shenzhen, Guangdong Province | |
| Tel. | 0755-26003611 | |
| Fax. | 0755-26003684 | |
| investor@nspower.com.cn |
III. Information disclosure and preparation place
| Website of the Stock Exchange where the annual | Shenzhen Stock Exchange- http://www.szse.cn/ |
深圳南山热电股份有限公司2021年年度报告全文
| report of the Company disclosed | |
| Media and Website where the annual report of the Company disclosed | China Securities Journal - https://www.cs.com.cn/, Securities Times - http://www.stcn.com/, Hong Kong Commercial Daily - http://hkcd.com/, Juchao Website: http://www.cninfo.com.cn/ |
| Preparation place for annual report | Secretariat of the Board of Directors, 17/F, Hantang Building, OCT, 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 |
V. Other relevant information
CPA engaged by the Company
| 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 | Cao Wei，Liu Xinfa, |
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexesWhether it has retroactive adjustment or re-statement on previous accounting data or not
□ Yes √ No
| 2021 | 2020 | Changes in the current year over the previous year (+,-) | 2019 | |
| Operating revenue (RMB) | 757,175,743.41 | 985,253,831.58 | -23.15% | 1,222,577,954.53 |
| Net profit attributable to shareholders of the listed Company (RMB) | -439,448,712.13 | 64,024,291.32 | -786.38% | 24,900,956.73 |
| Net profit attributable to shareholders of the listed Company | -514,142,213.75 | 7,601,038.59 | -6,864.10% | 14,685,745.16 |
深圳南山热电股份有限公司2021年年度报告全文
| after deducting non-recurring gains and losses (RMB) | ||||
| Net cash flow arising from operating activities (RMB) | -39,258,302.07 | 260,725,409.02 | -115.06% | 202,943,908.61 |
| Basic earnings per share (RMB/Share) | -0.7291 | 0.1062 | -786.53% | 0.0413 |
| Diluted earnings per share (RMB/Share) | -0.7291 | 0.1062 | -786.53% | 0.0413 |
| Weighted average ROE | -23.95% | 3.15% | -27.10% | 1.25% |
| Year-end of 2021 | Year-end of 2020 | Changes at end of the current year compared with the end of previous year (+,-) | Year-end of 2019 | |
| Total assets (RMB) | 2,790,002,824.41 | 3,020,830,930.06 | -7.64% | 3,219,261,720.55 |
| Net assets attributable to shareholder of listed Company (RMB) | 1,615,293,135.51 | 2,054,741,847.64 | -21.39% | 2,002,772,808.24 |
The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal years is negative, and theaudit report of last year shows that the ability to continue operating is uncertain
□Yes √No
The lower one of net profit before and after deducting the non-recurring gains/loses is negative
√Yes □No
| Item | 2021 | 2020 | Note |
| Operating revenue (RMB) | 757,175,743.41 | 985,253,831.58 | Mainly the revenue from power generation |
| Amount deducted from operating revenue (RMB) | 1,218,981.05 | 2,769,454.42 | Mainly the revenue from housing rental |
| Operating revenue after deduction (RMB) | 755,956,762.36 | 982,484,377.16 | Other operating revenue after deduction of the housing rental revenue |
VII. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (InternationalAccounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
深圳南山热电股份有限公司2021年年度报告全文
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules orChinese GAAP (Generally Accepted Accounting Principles) in the period.VIII. Quarterly main financial index
In RMB/CNY
| Q 1 | Q 2 | Q 3 | Q 4 | |
| Operating revenue | 86,380,557.37 | 290,221,836.01 | 212,550,225.68 | 168,023,124.35 |
| Net profit attributable to shareholders of the listed Company | -13,078,849.22 | 14,535,118.90 | -45,521,851.73 | -395,383,130.08 |
| Net profit attributable to shareholders of the listed Company after deducting non-recurring gains and losses | -15,774,423.49 | -3,743,192.02 | -64,881,113.62 | -429,743,484.62 |
| Net cash flow arising from operating activities | -38,883,595.50 | 107,804,308.49 | 20,211,042.05 | -128,390,057.11 |
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financialindex disclosed in the Company’s quarterly report and semi-annual report
□ Yes √ No
IX. Items and amounts of non-recurring (extraordinary) profit (gains)/loss
√Applicable □ Not applicable
In RMB/CNY
| Item | 2021 | 2020 | 2019 | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | 974,699.74 | -1,144,118.91 | -527,109.02 | |
| Governmental subsidy calculated into current gains and losses(while closely related with the normal business of the Company, the government subsidy that accord with the provision of national policies and are continuously enjoyed in line with a certain standard quota or quantity are excluded) | 23,396,336.60 | 13,833,445.53 | 6,402,848.81 | Amortization of government subsidy related to assets and receipt of the subsidies for gas- generation costs |
| Gains/losses on debt restructuring | 7,593,783.90 |
深圳南山热电股份有限公司2021年年度报告全文
| Gains/losses arising from contingency that without relation with the normal operation business of the Company | 5,000,000.00 | 6,584,816.78 | Reversal of the accrual liabilities | |
| Gains/losses of fair value changes arising from holding of the trading financial asset, trading financial liability and investment earnings obtained from disposing the trading financial asset, trading financial liability, and financial assets available for sale, except for the effective hedging business related to normal operation of the Company | 47,887,839.11 | The wealth management income | ||
| Switch back of the impairment for receivables that has impairment test independently | 12,000.00 | |||
| Other non-operating income and expenditure except for the aforementioned items | 13,652.99 | -118,229.62 | 5,578,877.22 | |
| Other gains/losses items that meets the definition of non-recurring gains/losses | 33,534,881.55 | |||
| Less: impact on income tax | 152,683.61 | 195,823.19 | ||
| Impact on minority shareholders’ equity (post-tax) | 2,579,026.82 | 3,708,642.89 | 1,055,582.25 | |
| Total | 74,693,501.62 | 56,423,252.73 | 10,215,211.57 | -- |
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□ Applicable √ Not applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.
Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&AAnnouncement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
□ Applicable √ Not applicable
There are no items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&AAnnouncement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
深圳南山热电股份有限公司2021年年度报告全文
Section III Management Discussion and AnalysisI. Industry of the Company during the reporting periodThe Company shall comply with the relevant disclosure requirement for electricity-related industries of Shenzhen Stock ExchangeSelf-Regulatory Guidelines for Listed Companies No.3 - Disclosure of Industry InformationIn 2021, the economic situation of the whole country and Guangdong continued to improve, and the demand for electricity furtherincreased. According to the data of Guangdong Power Exchange Center, by the end of 2021, the installed capacity of unifieddispatching of power grids in Guangdong was 159 million kW, with a year-on-year growth of 12.6%, among them, the installedcapacity of provincial-level dispatching was 127 million kW, and that of prefecture-level dispatching was 32 million kW. Theinstalled capacity of gas generator set was 30.546 million kW, increased by 14.0% on a year-on-year basis, and the installed capacityaccounted for 19.3%. In 2021, the total electricity consumption of Guangdong province throughout the year was 786.663 billion kWh,with a year-on-year growth of 13.6%. The maximum load of unified dispatching of the whole province was 135.13 million kW, ayear-on-year increase of 6.5%. The total electricity consumption in Shenzhen reached 110.34 billion kWh, breaking through the 100billion mark for the first time, with a year-on-year increase of 12.2%. In 2021, the cumulative transaction of electricity in Guangdongpower market was 295.17 billion kWh, with a year-on-year increase of 18%, cumulatively saving electricity costs for users by 10.05billion yuan, saving coal consumption for power generation by 2.584 million tons, reducing carbon dioxide emission by 6.872million tons, reducing sulfur dioxide emission by 5 tons, and reducing social power generation cost by 2.07 billion yuan. In 2021,
215.03 billion kilowatt-hours of electricity were negotiated in bilateral transactions, with a year-on-year increase of 1.9%, and withan average price difference of -53.6 li/kWh. In 2021, monthly transactions totaled 63.81 billion kWh, an increase of 85.2% on ayear-on-year basis, and with an average price difference of -21.5 li/kWh. Among them, the turnover of coal-fired generating unitswas 49.43 billion kWh, with an average price difference of -21.5 li/kWh; the the turnover of gas generating units was 14.38 billionkWh, with an average price difference of -21.9 li/kWh. From January to December in 2021, monthly power generation contracttransfer transactions totaled 14.88 billion kWh of electricity, with an average transaction price of 405.4 li/kWh. Among them, theturnover of coal-fired generating units was 11.5 billion kWh, with an average transaction price of 378.3 li/kWh; the the turnover ofgas generating units was 3.38 billion kWh, with an average transaction price of 501.0 li/kWh.
In the meantime, with the deepening reform of Guangdong's electricity market , the electricity spot market in Southern China(starting from Guangdong) carried out the trial operation of settlement in May and November to December in 2021, steadilypromoting the transition from "monthly" to "uninterrupted" longer billing cycle, and establishing a temporary mechanism fordirecting market price to end users. Since November, the spot market has achieved major breakthroughs of "running whileimproving".
In 2021, although the demand for electricity increased significantly, the price of natural gas rose all the way and remained high in thesame period, the on-grid price seriously dropped away form the fuel price, resulting in serious loss of power generation to gas powergeneration enterprises. Therefore, Guangdong Province and Shenzhen Municipal government, on the one hand, required all powergeneration enterprises to do their best to ensure electric power supply, and on the other hand, issued a series of policies and measuresto encourage the majority of power generation enterprises to implement electric power supply guarantee, including an increase of 0.1yuan/kWh in electricity charges for gas-fired power generation enterprises during peak periods in August and September, sinceOctober 1, the on-grid electricity price of 9E gas turbine power plants in Guangdong province has increased by 0.05 yuan/kWh, andthe Shenzhen municipal government issued a fiscal subsidy of 0.1 yuan/kWh for the electricity generated by Shenzhen local gas
深圳南山热电股份有限公司2021年年度报告全文
turbine power plants in August and September, which alleviated the operating dilemma faced by 9E gas turbine power plants to acertain extent, but has little impact on reversing the serious loss of power generation.
II. Main business of the Company during the reporting periodThe Company shall comply with the relevant disclosure requirement for electricity-related industries of Shenzhen Stock ExchangeSelf-Regulatory Guidelines for Listed Companies No.3 - Disclosure of Industry InformationThe 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 was confronted with many difficulties, such as repeated COVID-19pandemic, continued high fuel prices, and a further increase in the proportion of electricity market transactions. In order to minimizethe negative impact of the external environment on the company's operating performance, the company implemented a series ofbusiness layout and management changes with innovative thinking and tenacious perseverance, defined the annual businessobjectives and guidelines, took major targeted measures, constantly strengthened the economic operations management on the basisof continuously intensifying safety production management. Complying with the accelerating trend of electric power market reformin Guangdong province, the company organized two subordinate power plants to actively participate in the electricitymarket-oriented marketing competition and achieved good results, and made contributions to reduce losses.
During the reporting period, the company paid close attention to the operation and market expanding of relevant stock businesses,and its subordinate Shen Nan Dian Engineering Company continuously expanded the technical consulting and technical servicebusiness of domestic and foreign gas turbine power station construction projects. Shen Nan Dian Environment Protection Companyused the waste heat of gas turbine power generation to engage in the dry treatment business of wet sludge in sewage treatment plant,realizing the reduction, harmless treatment and comprehensive utilization of resources of municipal sludge in Shenzhen. However,due to various reasons, the output of Environmental Protection Company in the reporting period decreased significantly comparedwith that of last year.Main operation data
| Item | Current Period | Same Period Last Year |
| Gross installed capacity (10,000 KW) | 90 | 90 |
| Installed capacity of newly commissioned units (10,000 KW) | 0 | 0 |
| Planned installed capacity of approved projects (10,000 KW) | 0 | 0 |
| Planned installed capacity of projects under construction (10,000 KW) | 0 | 0 |
| Generating capacity (100 million KWH) | 11.48 | 8.87 |
深圳南山热电股份有限公司2021年年度报告全文
| On-grid electricity or electricity sales (100 million KWH) | 11.44 | 8.74 |
| Average rate of electricity consumption from power station(%) | 3.25% | 3.43% |
| Utilization time from power station (Hours) | 1,263 | 986 |
Electricity sales business
√Applicable □Not applicable
In 2021, the company's two subordinate power plants completed a total of 1.144 billion kWh of on-grid energy, 608 million kWh ofmarketing electric quantity in the month of price difference, and 675 million kWh of contract electric quantity in the spot month. Theelectric quantity of the company's subordinate power plants were as follows: Nanshan Power Factory completed 977 million kWh ofon-grid energy, 332 million kWh of marketing electric quantity in the month of price difference, and 395 million kWh of contractelectric quantity in spot month; Zhongshan Nanlang Power Plant completed 167 million kWh of on-grid energy, 276 million kWh ofmarketing electric quantity in the month of price difference, and 280 million kWh of contract electric quantity in spot month.
Reasons for major changes in relevant data
□Applicable √Not applicable
III. Core Competitiveness Analysis
In recent years, due to the impact of the macroeconomic situation and the common problems of gas turbine generating industry, theCompany’s main business has been facing increasing difficulties and challenges. However, the basic core competitiveness formed bythe operation and development for more than three decades and thanks to the strong support from major shareholders, and themanagement innovations adopted by BOD and leading group, it has laid a necessary foundation for the Company to survive andseeking transformation and development. During the reporting period the Company continued to increase the investment in R&D,successfully passed the certification as a high-tech enterprise.Core competitiveness of the Company was further consolidated andimproved, and there were no other major changes that might affect the future operation of the Company.
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 safety
深圳南山热电股份有限公司2021年年度报告全文
supervision, 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.
4. Advanced research ability, important part of strong power grid. The company has a number of independent utility model patentsand software copyrights, jointly draws up one national standard, and a number of patents for invention are under review by the ChinaNational Intellectual Property Administration. On December 23, 2021, the company was identified as the second batch of high-techenterprises in 2021 by Shenzhen municipal administrative authority, the company's scientific research innovation work has beenunanimously affirmed. At the same time, in order to effectively improve the rapid recovery ability of power system, NanshanThermal Power Plant fully responded to the construction planning of black-start power supply point, and completed the power gridblack-start power supply point project in the reporting period, which greatly enhanced the core competitiveness of Nanshan ThermalPower Plant in the power grid.IV. Main business analysis
1. Introduction
2021 was the first year of the 14
thFive-Year Plan. At the historic juncture of the two Centenary Goals, faced with the complex andvolatile situation of COVID-19 and tight electricity supply and demand, the electricity market construction in Guangdong provincehas made great progress, the electricity consumption in Guangdong province and Shenzhen continued to increase substantially. Thecompany actively implemented the work plan of the government departments at all levels, improved the political position,conscientiously fulfilled the social responsibility with the greatest efforts, guaranteed that the generating units should be fullyoperational, ensured safe and reliable power supply for the centennial anniversary of the founding of the Party and made outstanding
深圳南山热电股份有限公司2021年年度报告全文
contributions for alleviating the severe power shortage in Guangdong province and Shenzhen. The company's subordinate NanshanPower Factory and Zhongshan Nanlang Power Plant actually completed 1.144 billion kWh of on-grid energy, a 30.89% rise on ayear-on-year basis. The annual average utilization time of the generating units of the two power plants was 1263 hours, and theannual average service power consumption rate was 3.25%. During the reporting period, the 2021 bilateral contract signed byNanshan Power Factory and Zhongshan Nanlang Power Plant amounted to 1.165 billion kWh, and the transferred and settledelectricity of the two plants amounted to 490 million kWh. The company carried out the following main work during the reportingperiod:
1. As a state-owned enterprise, took responsibility and actively fulfilled corporate social responsibilities. The international fuel priceshave been fluctuating upward since the beginning of 2021 due to the ongoing COVID-19 pandemic, rising global inflation andchanges in oil supply and demand, and the domestic fuel prices for power generation, such as coal and natural gas, have also risen.The high cost of power generation restricted the thermal power enterprises to generate power, and the domestic electric power supplygap widened, "power shortage" reappeared, and some regions even carried out power rationing for a time. Under suchcircumstances, although the on-grid price seriously dropped away from the cost of power generation, the company still firmlyadhered to its political stance, resolutely implemented the decisions and arrangements for ensuring electric power supply, overcameall difficulties to ensure the safe production and stable supply of power, and actively implemented its corporate social responsibility.During the period of no-break power in 2021, the company's two power plants generated a combined 933 million kWh, an increase of255 million kWh on a year-on-year basis.
2. Strictly supervised and resolutely ensured the safety and environmental protection standards. The company paid close attention tothe implementation of the main responsibility of production safety, promoted the risk ranking management and control and the safetyconstruction of work groups, promoted the continuous improvement of work safety standardization, the three-year action of worksafety special rectification, and the safety culture construction. The company continued to maintain the safety target of "Five No" andcomprehensively completed the indicators for safety assessment. By December 31, 2021, we achieved 6,453 days of work safety.During the reporting period, the company completed various pollution reduction tasks, and no environmental pollution accidents andsafety production accidents occurred.
3. Took the initiative to effectively improve the fund management level. At the same time, the company tried to reduce the loss,revitalized the funds through many measures, and created benefits with funds management. To improve the use efficiency andincome level of its own funds, and reduce the financing cost, the company focused on the key points of funds, took benefits as thecenter and low risk as the premise, strengthened the capital outflow into the two-way management, and used their own cash to thefullest. Under the circumstance that foreign investment in new projects reduced cash, the company still actively developed the wealthmanagement opportunities of market through a variety of products and channels, strived for no idle cash in the account, and achievedgratifying results in adversity.
4. Made overall planning and efficiently completed the black-start technical innovation project. In 2021, the company’s NanshanPower Factory fully responded to the construction planning of black-start power supply point. Starting from "helping relieve the hugefrequency modulation pressure faced by power dispatching every day and effectively improving the rapid recovery ability ofShenzhen west power grid", strived for opportunities from China Southern Power Grid, Guangdong Power Grid, Shenzhen PowerGrid, and was finally selected as the black-start power supply point of the black-start critical path of the power grid. At present, theproject has been identified as "Shenzhen West Guaranteed Power Grid" and "Hong Kong Emergency Guaranteed Power SupplyPoint" by the government department, has accepted the on-site safety assessment by the South China Energy Regulatory Office ofNational Energy Administration as an important part of Shenzhen's local strong power grid, which greatly improved the core
深圳南山热电股份有限公司2021年年度报告全文
competitiveness of Nanshan Power Factory in the power grid, created a good foundation and premise and won favorable time andspace for the company's next transformation and development.
5. Increased research and development, and successfully identified as the "National High-tech Enterprise". In order to furtherenhance the core competitiveness, the company continued to strengthen the research and development, timely started the nationalhigh-tech enterprise identification and application work, and was identified as the second batch of high-tech enterprises in 2021 byShenzhen municipal administrative authority on December 23, 2021, marking a complete success to the company's national high-techenterprise application work. After being identified as a national high-tech enterprise, the company can enjoy a preferential tax rateof 15%, the government subsidies, additional deduction of R&D expenses, rewards and subsidies for high-level talents, governmenttargeted allocation of housing, and other incentive policies.
6. With transformation development, steadily took new steps in strategic transformation. In terms of transformation development, thecompany, on the one hand, steadily promoted the landing of Zhuozhi Fund project, signed the equity subscription agreement, capitalincrease agreement and shareholder agreement with Nanjing Zhongsheng Holdings Co., Ltd., and obtained 5.6% equity of NanjingZhongsheng Holdings Co., Ltd.. On the other hand, the company timely started the investigation and survey of LiaoyuanEnvironmental Protection, combined with various arguments, and considered that the project was in line with the company's futurestrategic layout, and completed the purchase of part of the shares of Liaoyuan Environmental Protection step by step within the year,receiving a total of 4.0485 million shares of Liaoyuan Environmental Protection, accounting for 9.93% of the total share capital ofLiaoyuan Environmental Protection.
In 2021, the Company has achieved a revenue in operation of 757 million Yuan, the net profit attributable to shareholder of listedcompany amounted as -439.4487 million Yuan and basic EPS was -0.7291 Yuan.
2. Revenue and cost
(1) Constitute of operation revenue
In RMB/CNY
| 2021 | 2020 | Increase/decrease y-o-y (+,-) | |||
| Amount | Ratio in operating revenue | Amount | Ratio in operating revenue | ||
| Total operating revenue | 757,175,743.41 | 100% | 985,253,831.58 | 100% | -23.15% |
| Industry classification | |||||
| Energy industry | 708,883,313.18 | 93.62% | 878,600,297.92 | 89.18% | -19.32% |
| Engineering service | 43,685,185.43 | 5.77% | 41,094,571.29 | 4.17% | 6.30% |
| Sludge drying | 3,388,263.75 | 0.45% | 62,789,507.95 | 6.37% | -94.60% |
| Other | 1,218,981.05 | 0.16% | 2,769,454.42 | 0.28% | -55.98% |
| Product classification | |||||
深圳南山热电股份有限公司2021年年度报告全文
| Electricity sales | 708,883,313.18 | 93.62% | 878,600,297.92 | 89.18% | -19.32% |
| Engineering service | 43,685,185.43 | 5.77% | 41,094,571.29 | 4.17% | 6.30% |
| Sludge drying | 3,388,263.75 | 0.45% | 62,789,507.95 | 6.37% | -94.60% |
| Other | 1,218,981.05 | 0.16% | 2,769,454.42 | 0.28% | -55.98% |
| Region classification | |||||
| Domestic | 757,175,743.41 | 100.00% | 985,253,831.58 | 100.00% | -23.15% |
| Sales model | |||||
| Direct sales | 757,175,743.41 | 100.00% | 985,253,831.58 | 100.00% | -23.15% |
(2) The industries, products, regions or sales model accounting for over 10% of the Company’s operatingrevenue or operating profit
√Applicable □ Not applicable
The Company shall comply with the relevant disclosure requirement for electricity-related industries of Shenzhen Stock ExchangeSelf-Regulatory Guidelines for Listed Companies No.3 - Disclosure of Industry Information
In RMB/CNY
| Operating revenue | Operating cost | Gross margin | Increase/decrease of operating revenue y-o-y | Increase/decrease of operating cost y-o-y | Increase/decrease of gross margin y-o-y | |
| Product classification | ||||||
| Electricity sales | 708,883,313.18 | 816,273,176.20 | -15.15% | -19.32% | 12.64% | -186.46% |
| Engineering service | 43,685,185.43 | 28,002,979.56 | 35.90% | 6.30% | -2.04% | 17.95% |
| Region classification | ||||||
| Domestic | 752,568,498.61 | 844,276,155.76 | -12.19% | -18.17% | 12.09% | -167.33% |
Reasons for great changes in relevant financial indicators
√ Applicable □Not applicable
In 2021, the operating revenue from sludge drying was lower than a year earlier mainly due to the lower sludge capacity.In 2021, gross margin of electricity sales decreased compared to the same period of previous year, mainly because cost of natural gasgoes up due to the unit price soaring; the market trading spreads drops than the revenue from electricity trading reduced.
(3) Income from physical sales larger than income from labors
√ Yes □ No
| Industries | Item | Unit | 2021 | 2020 | Increase/decrease y-o-y(+,-) |
| Electric Power | Sales volume | 100 million KWH | 11.44 | 8.74 | 30.89% |
| Output | 100 million KWH | 11.48 | 8.87 | 29.43% |
深圳南山热电股份有限公司2021年年度报告全文
| Storage | 100 million KWH |
Reasons for a y-o-y changes of 30% or more in relevant data
√Applicable □Not applicable
The Company has the courage to assume social responsibility of ensuring the power supplying, two power plants have generated 933million KWH electricity in total during the power supplying of 2021, a y-o-y growth of 255 million KWH.
(4) Performance of the material sales contract and major procurement contracts that signed by theCompany up to the reporting period
□ Applicable √Not applicable
(5) Constitute of operation cost
Industry and products classification
In RMB/CNY
| Industries | Item | 2021 | 2020 | Increase/decrease y-o-y (+,-) | ||
| Amount | Ratio in operation cost | Amount | Ratio in operation cost | |||
| Energy industry | Power, heat supply | 816,273,176.20 | 96.00% | 724,649,204.65 | 91.21% | 12.64% |
| Engineering service | Engineering cost | 28,002,979.56 | 3.29% | 28,587,448.80 | 3.60% | -2.04% |
| Other business | Sludge drying etc. | 5,984,503.64 | 0.70% | 41,287,156.94 | 5.20% | -85.51% |
In RMB/CNY
| Products | Item | 2021 | 2020 | Increase/decrease y-o-y (+,-) | ||
| Amount | Ratio in operation cost | Amount | Ratio in operation cost | |||
| Electricity sales | Power supplying | 816,273,176.20 | 96.00% | 724,649,204.65 | 91.21% | 12.64% |
| Engineering service | Engineering cost | 28,002,979.56 | 3.29% | 28,587,448.80 | 3.60% | -2.04% |
| Sludge drying | Sludge treatment | 5,414,557.67 | 0.64% | 41,089,819.34 | 5.17% | -86.82% |
| Other business | Other | 569,945.97 | 0.07% | 197,337.60 | 0.02% | 188.82% |
NoteThe main component of operation costs of electricity sales is the cost of natural gas, and the natural gas as a percentage of operationcost takes 77.37% in 2021 and 62.26% in 2020.
(6) Changes in the scope of consolidation in Reporting Period
□Yes √No
深圳南山热电股份有限公司2021年年度报告全文
(7) Major changes or adjustment in business, product or service of the Company in Reporting Period
□ Applicable √ Not applicable
(8) Major sales and main suppliers
Major sales client of the Company
| Total top five clients in sales (RMB) | 722,610,043.43 |
| Proportion in total annual sales volume for top five clients | 95.43% |
| Proportion in total annual sales for the related party’s sales in top five clients’ sales | 0.00% |
Information of top five clients of the Company
| Serial | Name | Sales (RMB) | Proportion in total annual sales |
| 1 | Shenzhen Power Supply Bureau Co., Ltd. | 584,596,538.90 | 77.21% |
| 2 | Guangdong Power Grid Co., Ltd. | 96,832,471.77 | 12.79% |
| 3 | China Machinery Engineering Corporation | 34,239,288.30 | 4.52% |
| 4 | Wuhan Electric Power Combustion Engine Installation Co., Ltd. | 3,543,000.00 | 0.47% |
| 5 | Shenzhen Water Group | 3,398,744.46 | 0.45% |
| Total | -- | 722,610,043.43 | 95.43% |
Other situation of main clients
□ Applicable √ Not applicable
Main suppliers of the Company
| Total purchase amount from top five suppliers (RMB) | 667,368,336.82 |
| Proportion in total annual purchase amount for top five suppliers | 95.14% |
| Proportion in total annual purchase amount for the related party’s amount in top five suppliers | 0.00% |
Other information on top five suppliers of the Company
| Serial | Name | Purchases (RMB) | Proportion in total annual purchases |
| 1 | Shenzhen Gas Group Co., Ltd. | 470,105,000.20 | 67.02% |
| 2 | CNOOC Gas Power Group Co., Ltd. | 101,038,830.73 | 14.40% |
| 3 | Guangdong Xin’Ao Energy Development Co., Ltd. | 46,701,291.11 | 6.66% |
| 4 | Shanghai Power Equipment Research Institute Co., Ltd. | 33,414,857.52 | 4.76% |
| 5 | Shenzhen Power Supply Bureau Co., Ltd. | 16,108,357.26 | 2.30% |
深圳南山热电股份有限公司2021年年度报告全文
| Total | -- | 667,368,336.82 | 95.14% |
Other information on main suppliers of the Company
□ Applicable √ Not applicable
3. Expenses
In RMB/CNY
| 2021 | 2020 | Increase/decrease y-o-y (+,-) | Note of major changes | |
| Sales expense | 928,661.79 | 4,979,915.34 | -81.35% | Decrease of sales expense mainly due to the declined in treatment for dry mud from Shen Nan Dian Environment Protection Company |
| Management expense | 103,286,926.69 | 111,618,225.09 | 7.46% | |
| Financial expense | 15,212,737.67 | -66,657.96 | -22,922.09% | Increase of financial expense mainly because the wealth management income adjusted to the item of investment income, and the interest income from deposits declined. |
| R&D expense | 20,933,712.98 | 8,490,882.58 | 146.54% | Increase of R&D expense mainly due to the new increase of R&D expense for technology from parent company |
4. R&D expenses
√Applicable □√ Not applicable
| Projects | Purpose | Progress | Goals to be achieved | Expected impact on the future development of the Company |
| R&D of the inspection robot in cooling tower | Research and develop a new cooling tower inspection robot, facilitating staff to carry out maintenance and save the operation time of the staff. | Completed | Elevated the scientific content and work efficiency of electricity production, save labor costs and higher the scientific content and core competitiveness of the products and service of the Company | |
| R&D of the energy storage black-start concurrent shifter for plant power | In case of black-start, the unit is islanded for operation. Increase the black-start concurrent cabinet, automatically identify the synchronous point grid nature, and automatically achieved the difference of | Completed | Promoting the development and progress of power production technology, effectively strengthen the safety and security of |
深圳南山热电股份有限公司2021年年度报告全文
| generator and grid connection without pressure closing，the differential frequency, co-frequency and voltage-free grid connection of the line, precisely closing when the phase-angle difference is zero degrees to achieves shock-free grid connection. Realizing the smooth exit of plan power in order to improve the reliability of unit operation. | production, higher the scientific content and core competitiveness of the products and service of the Company | |||
| R&D of the wiring process of generator sets retrofitted with electron-chemical energy storage devices | By connecting the electron-chemical energy storage device with a cable between the generator outlet and low-voltage side of the main transformer, the difficulty of retrofitting some generator sets with electron-chemical energy storage devices can be reduced. Improving the capacity configuration of energy storage, give full play to the frequency regulation advantages of electron-chemical energy storage devices, reduce the construction difficulties and equipment investment, higher the economic efficiency. | Completed | Higher the economic efficiency, helping the Company to grow and improve the scientific content and core competitiveness of the products and service of the Company | |
| R&D of the condenser heat exchanger bundle for 9E combine cycle unit | Replace the original condenser tube bundle with a TP304 bundle, with less impact on condenser operating parameters, the new tube bundle of the condenser can be improved in terms of vibration, corrosion and scaling resistance, thereby improving the safety of the condenser | Completed | Enhance the performance of equipment, higher the efficiency of equipment operation, strengthen the safety and security of production and improve the scientific content and core competitiveness of the products and service of the Company | |
| R&D of the early warning device of thermal runaway for energy storage lithium iron phosphate battery | By adding the early warning device, when there is a fire, in the first stage of initial thermal runaway, the early fire detection and warning in prefabricated cabin is realized by special gas detection device(characteristic gases as H2, CO), meanwhile, when the detector alarm is received through the three-stage BMS, the battery DC system is immediately cut off to improve operational safety of the energy storage battery compartment | Completed | Deeply study the operation mechanism of the equipment, optimize and improve the control mode of the equipment, improve the operational safety and reliability of the equipment, and escalated the scientific content and core competitiveness of the products and service of the |
深圳南山热电股份有限公司2021年年度报告全文
| Company | ||||
| R&D of the dissipation and silencing device for gas turbine | With the development of industrial production, urban construction and increasing population, the increase in industrial emission facilities, environmental noise is becoming increasingly serious, it has become a major pollution of human social environment. In order to improve the sense of social responsibility of the Company, minimize the noise pollution, and reduce the disturbance of surrounding residents t rest and sleep, and affect the efficiency of work, meanwhile it can provide technical support and reference to enterprises with similar work needs. | Completed | Proactively undertaking the social responsibility, minimize the negative environmental impact of equipment operation by using new technology, and escalated the scientific content and core competitiveness of the products and service of the Company |
R&D personnel
| 2021 | 2020 | Change proportion | |
| Number of R&D personnel (person) | 72 | 35 | 105.71% |
| Proportion of R&D personnel | 18.37% | 8.68% | 9.69% |
| Educational background | —— | —— | —— |
| Undergraduate | 32 | ||
| Masters | 2 | ||
| Other | 38 | ||
| Age composition | —— | —— | —— |
| Under 30 | 5 | ||
| 30~40 | 15 | ||
| Over 40 | 52 |
Investment of R&D
| 2021 | 2020 | Change proportion | |
| Investment for R&D (RMB) | 20,933,712.98 | 8,490,882.58 | 146.54% |
| R&D investment/Operating revenue | 2.76% | 0.86% | 1.90% |
| Capitalization of R&D investment (RMB) | 0.00 | 0.00 | |
| Capitalization of R&D investment/R&D investment | 0.00% | 0.00% | 0.00% |
Reasons and effects of significant changes in composition of the R&D personnel
深圳南山热电股份有限公司2021年年度报告全文
√Applicable □√ Not applicable
During the reporting period, the Company continued to soaring the investment in R&D, successfully passed the certification as ahigh-tech enterprise, which consolidated and improved the core competitiveness of the Company forward.
Reasons for significant changes in the proportion of total R&D investment in operating revenue from the previous year
□Applicable √ Not applicable
Reasons and rationality of the major changes of the capitalization rate of R&D investment
□ Applicable √ Not applicable
5. Cash flow
In RMB/CNY
| Item | 2021 | 2020 | Y-o-y changes (+,-) |
| Subtotal of cash in-flow from operation activity | 915,970,557.14 | 1,156,114,679.30 | -20.77% |
| Subtotal of cash out-flow from operation activity | 955,228,859.21 | 895,389,270.28 | 6.68% |
| Net cash flow from operation activity | -39,258,302.07 | 260,725,409.02 | -115.06% |
| Subtotal of cash in-flow from investment activity | 85,113,274.87 | 40,321,341.78 | 111.09% |
| Subtotal of cash out-flow from investment activity | 246,736,667.99 | 528,860,991.95 | -53.35% |
| Net cash flow from investment activity | -161,623,393.12 | -488,539,650.17 | -66.92% |
| Subtotal of cash in-flow from financing activity | 1,061,074,323.80 | 1,318,118,917.79 | -19.50% |
| Subtotal of cash out-flow from financing activity | 935,063,124.20 | 1,096,793,475.57 | -14.75% |
| Net cash flow from financing activity | 126,011,199.60 | 221,325,442.22 | -43.07% |
| Net increased amount of cash and cash equivalent | -74,996,638.62 | -6,888,728.75 | 988.69% |
Main reasons for y-o-y major changes in aspect of relevant data
√Applicable □ Not applicable
1. Net cash flow from operation activity has a declined of 115.06% on a y-o-y basis, mainly due to the decrease in gross profit frompower generation in the year, and decrease in financial settlement proceeds in power market;
2.The cash in-flow from investment activity has an increase of 111.09% on a y-o-y basis, mainly due to the increase in earnings from
深圳南山热电股份有限公司2021年年度报告全文
financial management during the year;
3. The cash out-flow from investment activity has a declined of 53.35% on a y-o-y basis, mainly due to the decrease in expenses forfinancial products purchased in the year;
4. Net cash flow from investment activity has a declined of 66.92% on a y-o-y basis, mainly due to the decrease in net purchase offinancial products during the year;
5. Net cash flow from financing activity has a declined of 43.07% on a y-o-y basis, mainly due to the decrease in net cash inflow frombank loans during the year;
6. Net increased amount of cash and cash equivalent has a declined of 988.69% on a y-o-y basis, mainly due to the fact that increasein net cash flows from financing activities for the year was smaller than the decrease in net cash flow arising from operating activitiesand investment activities.
Explanation on reasons for the significant differences between the net cash flow arising from operation activities in the Period andnet profit of last year
√Applicable □ Not applicable
There are 327 million yuan provision for asset impairment in the year and payment of natural gas are settled by bank acceptance.V. Analysis of the non-main business
√Applicable □ Not applicable
In RMB/CNY
| Amount | Ratio in total profit | Note | Whether be sustainable (Y/N) | |
| Investment income | 45,981,085.44 | -9.05% | Mainly due to the earnings from financial management | N |
| Assets impairment | -327,479,010.92 | 64.44% | Provision for fixed assets, provision for inventory depreciation and impairment of construction in progress in the year | N |
| Non-operating income | 5,261,868.99 | -1.04% | Mainly due to the reversal of accrual liabilities | N |
| Non-operating expenditure | 248,216.00 | -0.05% | Mainly due to the loss on retirement of non-current assets | N |
VI. Assets and liability
1. Major changes of assets composition
In RMB/CNY
| Year-end of 2021 | Year-begin of 2021 | Ratio changes | Notes of major changes | |||
| Amount | Ratio in total | Amount | Ratio in total | |||
深圳南山热电股份有限公司2021年年度报告全文
| assets | assets | (+,-) | ||||
| Monetary fund | 689,604,633.59 | 24.72% | 764,601,272.21 | 25.31% | -0.59% | |
| Account receivable | 73,610,161.02 | 2.64% | 85,293,052.88 | 2.82% | -0.18% | |
| Contractual assets | 1,040,000.00 | 0.04% | 7,229,600.00 | 0.24% | -0.20% | |
| Inventory | 88,500,991.13 | 3.17% | 100,245,529.06 | 3.32% | -0.15% | |
| Investment real estate | 2,009,051.80 | 0.07% | 2,205,189.40 | 0.07% | ||
| Long-term equity investment | 6,986,655.19 | 0.25% | 8,893,408.86 | 0.29% | -0.04% | The long-term equity investment measured by equity was recognized as the investment income |
| Fix assets | 643,256,398.30 | 23.06% | 925,745,208.55 | 30.65% | -7.59% | Provision for impairment of fixed assets for the year |
| Construction in process | 6,088,768.51 | 0.22% | 42,782,712.98 | 1.42% | -1.20% | Provision for impairment of construction in progress during the year |
| Short-term loans | 858,444,163.25 | 30.77% | 675,528,858.48 | 22.36% | 8.41% | Size of short-term loans increased |
| Trading financial assets | 632,874,406.39 | 22.68% | 0.00 | 0.00% | 22.68% | The financial products adjusted to the item of ‘trading financial assets’ in the year and foreign investment increased during the year |
| Account paid in advance | 64,415,236.66 | 2.31% | 29,544,788.35 | 0.98% | 1.33% | Increase in prepayment for natural gas |
| Other current assets | 331,868,661.62 | 11.89% | 917,288,244.54 | 30.37% | -18.48% | The financial products adjusted to the item of ‘trading financial assets’ in the year |
| Other equity instrument investment | 200,615,000.00 | 7.19% | 81,615,000.00 | 2.70% | 4.49% | More investment on the investment projects that measured at fair value and with variation reckoned into other comprehensive income |
| Note payable | 135,025,883.27 | 4.84% | 30,467,345.48 | 1.01% | 3.83% | Increase in commercial draft and bank acceptance |
Foreign assets account for a relatively high proportion
□Applicable √Not applicable
2. Assets and liability measured at fair value
√Applicable □ Not applicable
深圳南山热电股份有限公司2021年年度报告全文
In RMB/CNY
| 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 |
| Financial assets | ||||||||
| Trading financial assets (derivative financial assets excluded) | 72,873,680.00 | 560,000,726.39 | 632,874,406.39 | |||||
| Other equity instrument investment | 81,615,000.00 | 119,000,000.00 | 200,615,000.00 | |||||
| Total above mentioned | 81,615,000.00 | 191,873,680.00 | 560,000,726.39 | 833,489,406.39 | ||||
| Financial liabilities | 0.00 | 0.00 | ||||||
Other changesThe financial products purchased in the year are calculated under ‘trading financial assets’ instead of ‘other current assets’
Whether there is a significant changes in the measurement attributes of the main assets during the period
□Yes √No
3. Assets right restriction till end of reporting period
There are no assets right restriction till end of the reporting period
VII. Investment analysis
1. Overall situation
√ Applicable □Not applicable
| Investment amount in the Period (RMB) | Investment amount at same period last year (RMB) | Changes (+,-) |
| 191,831,197.00 | 21,272,400.00 | 801.78% |
深圳南山热电股份有限公司2021年年度报告全文
2. The major equity investment obtained in the reporting period
√ Applicable □Not applicable
In RMB/CNY
| Invested company | Main business | Form of investment | Investment amount | Shareholding ratio | Capital source | Partner | Time horizon | Type | Progress as of the balance sheet date | Anticipated income | Investment gains/losses in the Period | With lawsuit involved (Y/N) | Disclosure date (if any) | Disclosure index (if any) |
| Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. | Service of resource utilization technology of waste-water | Other | 72,873,680.00 | 9.93% | Own fund | N/A | Long-term | Joint stock company | 72,873,680.00 Yuan have been invested | 0.00 | N | 2021-11-12 | Notice on the Investment for Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd.; Notice No.: 2021-055; Disclosure media: China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website | |
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | Equity investment, venture capital | Capital increase | 118,957,517.00 | 99.96% | Own fund | China Science and Tech Innovation Venture Capital Management | 5-year | Limited partnership | 140,229,917.00 Yuan have been invested | -550,273.20 | N | 2020-10-23 | Notice on the Investment for Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership); Notice No.: 2020-051; Disclosure media: China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website | |
| Total | -- | -- | 191,831,197.00 | -- | -- | -- | -- | -- | -- | -550,273.20 | -- | -- | -- |
深圳南山热电股份有限公司2021年年度报告全文
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company had no derivatives investment in the reporting period.
5. Use of proceeds
□ Applicable √ Not applicable
The Company had no use of proceeds in the reporting period.VIII. 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
IX. Analysis of main Holding Company and stock-jointly companies
√Applicable □Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB/CNY
| Name | Type | Main business | Register capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Shenzhen New Power Industrial | Subsidiary | Technology development regarding to application of remaining heat | RMB 113.85 million | 530,506,071.75 | 95,388,390.58 | 279,902,287.61 | -63,634,828.14 | -63,634,828.14 |
深圳南山热电股份有限公司2021年年度报告全文
| Co., Ltd. | (excluding restricted items) and power generation with remaining heat. Add: power generation through burning machines. | |||||||
| 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 | 69,312,563.06 | 52,067,932.58 | 3,412,263.75 | -69,977,943.79 | -70,083,714.50 |
| 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 | RMB 10 million | 53,112,551.61 | 38,988,381.20 | 43,685,185.43 | 1,541,455.25 | 1,504,549.25 |
深圳南山热电股份有限公司2021年年度报告全文
| cycle power plant (station). Import and export of goods and technologies (excluding distribution and state monopoly commodities) | ||||||||
| 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 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) | RMB 53.3 million | 101,091,770.98 | 83,475,727.27 | 1,196,857.16 | -11,476,837.56 | -7,601,325.85 |
| Shen Nan | Subsidiar | Gas turbine power | RMB 746.8 | 263,698,889. | -389,404,220 | 124,646,010. | -331,008,024 | -330,756,155 |
深圳南山热电股份有限公司2021年年度报告全文
| Dian (Zhongshan) Electric Power Co., Ltd. | y | 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 | million | 43 | .60 | 22 | .46 | .47 |
| Shen Nan Energy (Singapore) Co., Ltd. | Subsidiary | Agent for oils trade and spare parts of gas turbine | US $ 0.9 million | 102,739,424.81 | 100,231,032.52 | 0.00 | -35,387,913.66 | -35,433,131.24 |
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | Subsidiary | Equity investment, venture capital | RMB 140.918 million | 140,290,150.23 | 140,290,150.23 | 0.00 | -550,273.10 | -550,273.10 |
Subsidiary disposes and acquired in the period
□Applicable √ Not applicable
Information on main holding company and stock-jointly companiesX. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
XI. Future Development Prospects
(i) Brief analysis of macroeconomic situation and industry trendIn accordance with the spirit of the Notice of Energy Bureau of Guangdong Province on Doing a Good Job in the Annual Transactionof Electricity Market in 2022 (YNDLH (2021) No. 582) and the Notice of Energy Bureau of Guangdong Province and South ChinaEnergy Regulatory Office of National Energy Administration on the Relevant Matters of the Electricity Market Transactions in 2022(YNDL (2021) No. 110), in 2022, Guangdong's electricity market is about 550 billion kilowatt-hours, the annual transaction scale of
深圳南山热电股份有限公司2021年年度报告全文
which is 315 billion kilowatt-hours. In 2022, all the on-grid electricity of coal-fired power plants in the province will enter the powermarket, all provincial-level dispatching and above gas-fired power plants will enter the power market, and the prefecture-leveldispatching gas-fired power plants can choose by themselves but are not allowed to quit once entered. All units of Ling’ao andYangjiang Nuclear Power Plants enter the market and directly participate in electricity market transactions. In addition, coal-firedand gas-fired units entering the power market will no longer arrange the base electricity and will be replaced by the electricitypurchased on behalf of the units. However, the electricity purchased on behalf of the units will no longer be subject to the on-gridprice approved by the government, but will be settled according to the monthly weighted comprehensive price of the power market.In principle, starting from January 1, 2022, the electricity spot market in the south (starting from Guangdong) will enter the trialoperation of continuous settlement throughout the year, and make rolling revisions to the spot implementation plan and markettrading rules as needed and improve technical support system according to the method of "running and improving at the same time".
In 2022, under the influence of various factors, the power generation situation of 9E units in Guangdong province is still severe, andthe production and operation of the company's two 9E gas turbine power plants will face enormous pressure and challenges. Firstly,it is estimated that the new generating unit capacity will be 8.685 kilowatts in 2022, and 9E gas turbine has no advantage incompetition with large-capacity and high-efficiency units. Secondly, the trading system restrains the proportion of medium and longterm electric quantity and actual market electric quantity, which reduces the possibility of a large proportion of excess electricquantity when the clearing income is large. Thirdly, the continuous high price of natural gas will inevitably make it difficult for gasturbine power plants to make profits.
(ii) Summary of the company's 2022 annual business planThe year 2022 is an important year for China to embark on a new journey to fully build a modern socialist country and is also acritical year for the transformation and development of Shenzhen Nanshan Power. The company will closely follow the national"14th Five-Year Plan" development planning and strategy layout, accelerate the establishment of new development pattern, andpromote the strategic transformation and high-quality development of the company on the basis of conscientiously doing a good jobin the safety production and operation of the main business of electric power. In 2022, the company will unswervingly take the "1+5"strategic roadmap as the guide, take the annual work "226" project as the goal, strive for progress through stability and promotestability through progress, and go all out to do a good job in various tasks:
1. Adhere to the leadership of party building and continue to enhance the core role of party organization in leadership. In 2022, theCommunist Party of China will start a new journey towards the second centenary goal, the company will continue to adhere to theguidance of party building, focus on studying and implementing the spirit of the Sixth Plenary Session of the 19
thCPC CentralCommittee, consolidate and expand the achievements of party history study and education, solidly carry out the construction of thetheme style, and continue to strengthen the "three important and one big" collective decision-making mechanism, translate theoryinto guidelines for corporate governance, production operations and transformation development, realize the party building work tolead the central work, and constantly enhance the core leadership role of the party organization in corporate governance.
2. Adhere to standardized operation and constantly improve the level of corporate governance. In strict accordance with the CompanyLaw, Securities Law, Listing Rules of Shenzhen Stock Exchange and other relevant laws and regulations and the requirements of thenormative documents, do a good job in information disclosure based on the principles of "truth, accuracy, completeness, timelinessand fairness", do a good job in the management of the three meetings on the premise of standardized operation, do a good job in themanagement of investor relations in accordance with laws and regulations, ensure the standardized operation of corporate governance,production and operation, and promote the improvement of corporate governance level.
深圳南山热电股份有限公司2021年年度报告全文
3. Adhere to safe production and continue to strengthen internal management and internal control. According to the new annualbusiness objectives, we will pay close attention to safety production, stock management and industrial upgrading, strengthen internalmanagement, and go all out to complete the annual work arrangement. In terms of internal control construction, we will continue toimprove the internal control system construction, strengthen the internal control management, strictly follow the relevant regulationsand combine the actual situation, further improve the internal control system construction, optimize the company's business process,strengthen the implementation of the internal control management system, and promote and improve the company's operationmanagement level and management efficiency, and enhance the risk prevention ability of the enterprise.
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 Shen Nan Dian 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. Aiming at early transformation and development, actively and steadily promoting the industrial upgrading. According to theannual work arrangement of “226” project, the Company will adhere to the two concepts of safety-first and steady-oriented, based onstock assets and resources, start a new engine for industrial upgrading and transformation, and make great efforts to promote thedemonstration and landing of new production capacity and new projects with a steady progress, and strive to accomplish thetransformation development at an early date.
6. Take the continuous promotion of management innovation as the starting point and improve management efficiency and talentquality in all respects. Continue to deepen the reform of human resources, adhering to the employment orientation of ‘revolutionary,professional and youthful’, further optimize the allocation of human resources, and prepare the management layout for the company'stransformation and development in advance. Focus on training a group of young talents with high comprehensive quality, higheducational background, professional domain knowledge and rich working experience, and build a young and professional team ofcompound management cadres to reserve management talents for new projects and new industries, and to escort the company'sstrategic 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 countermeasuresIn terms of main business: in 2021, affected by multiple factors, the company's two subordinate power plants faced huge pressurefrom the continuous rise in fuel prices and the surge in guaranteed power supply. With the continuous promotion and deepening ofelectricity market transactions in Guangdong province, the company's main business operation situation is more serious under thesituation of long-term spot trial settlement operation. The company will continue to strengthen the operation and management ofstock assets, actively respond to the requirements and changes of the power market, and do its best to improve the profitability of itsmain business and overall operating efficiency. At the same time, the company will actively explore diversified business models and
深圳南山热电股份有限公司2021年年度报告全文
opportunities for transformation and development to create better conditions for the company's sustainable operation and healthydevelopment.
2. In terms of safety management: under the market-oriented power production model, power plants will face more flexible dispatchmethods and stricter assessment policies, which put forward higher requirements for the operation and maintenance of existing agingpower generation equipment. The company will formulate scientific and reasonable maintenance and technical transformation plans,invest corresponding capital and technical strength, continue to improve the maintenance and management level of equipment, andimplement the main responsibility for safe production so as to ensure the safe and stable operation of production facilities. At thesame 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, and continue to play the supporting roleof the main peak shaving power point.
3. In terms of fuel procurement: in 2022, the company's natural gas purchase price will mainly depend on the changing trend of thenatural gas market and the sales prices of existing suppliers. In 2021, due to factors such as global economic recovery, increaseddemand caused by extreme weather and low inventories, sharp decline in green energy power generation output, and the clearing ofsome power generation capacity due to the COVID-19 pandemic, the global natural gas supply was tight and price shot up. In 2022,with the outbreak of the war between Russia and Ukraine, bulk commodity prices have soared, and the natural gas supply is moretight than expected. It is estimated that the company's natural gas procurement cost in 2022 will not be optimistic. In addition, withthe continuous advancement of the market-oriented reform of electricity trading in Guangdong Province, the company's plannedpower generation will be difficult to match with the actual power generation, resulting in a larger discrepancy between the plannedand actual purchases of natural gas. As the natural gas purchase contract must be signed in advance, the contracted gas volume hasbeen basically determined at the time of signing. If we cannot take delivery of the gas as agreed due to factors such as themarketization of electricity transactions in the later period, there may be risks of taking delivery of less gas than the contracted gasvolume. The company will continue to optimize the upstream and downstream partnerships, give full play to the adjustment functionof multiple gas sources, and make every effort to reduce the cost of natural gas procurement while ensuring the gas demand forelectricity production.
4. Land of Nanshan Power Factory: In December 2021, 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 in2021" 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.
深圳南山热电股份有限公司2021年年度报告全文
XII. Reception of research, communication and interview during the reporting period
√Applicable □ Not applicable
| Time | Location | Way | Type | Reception target | Main contents of the discussion and information provided | Basic situation index of investigation |
| Jan.-Dec. 2021 | Office from the headquarters | Field visit | Individual | Individual (23 person-time) | Attend the general meeting and inquiry of register of members (shareholders) etc. | Received according to the laws and regulations |
| Jan.-Dec. 2021 | Interactive platform | Written inquiry | Individual | Individual (88 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. 2021 | 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 |
深圳南山热电股份有限公司2021年年度报告全文
Section IV. Corporate GovernanceI. 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 three 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 three regular meetings and seven extraordinary meetings to carefullyresearch, deliberate and make decisions on significant matters within the rights of board of directors. Four special committees underthe Board of Directors, the Strategy and Investment Committee, Audit Committee, Nomination Committee, as well as Remunerationand Appraisal Committee are carefully deliberated relevant proposals and giving opinions and suggestions. The full use of the activerole of the special committees in major investment decisions, important personnel adjustments, standardized salary management,internal audit, and risk control has effectively ensured the scientific nature of the Company's decisions and the normalization ofmanagement. Independent directors played their professional advantages, upheld the objective and independent principle andconscientiously performed their duties, and paid attention to the interests of the Company as a whole and those the shareholders ofthe Company, especially the legitimate interests of minority shareholders. They issued independent opinions on resolutions andbrought forward constructive 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 three regular meetings and four extraordinary meetings, effectively supervised theday-to-day operations of the board of directors, the Company's financial status, operating conditions, financial investment, and thelegality and compliance of directors and senior management in performing their duties, independently issued opinions, andeffectively protected the legitimate rights and interests of the Company and shareholders, especially the small and mediumshareholders. At the same time, the board of supervisors extended the connotation of supervision and standardized operation and riskprevention to daily operations, the board of supervisors also learned about the Company's operations and management by attending
深圳南山热电股份有限公司2021年年度报告全文
the shareholders' meetings and attending the board meetings and organizing on-site inspections on the Company's subsidiaries tobetter understand the Company's operations and management so as to better perform supervisory duties.
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 2021, the Company completed thepreparation and disclosure of periodic reports and interim announcements on schedule, a total of 60 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 State
深圳南山热电股份有限公司2021年年度报告全文
Council 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, and inaccordance with the requirements, on February 1, 2021, the "Self-inspection Report on the Quality of Corporate Governance" hasbeen submitted to the sixteenth extraordinary meeting of the company's eighth board of directors for deliberation. In accordance withthe spirit of the China Securities Regulatory Commission's "Announcement on Launching Special Actions on the Governance ofListed Companies" and the requirements of the Shenzhen Securities Regulatory Bureau, the company has initiated relevant work andcompleted on schedule during the reporting period.
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 shareholder and the actual controllerin ensuring the Company’s assets, personnel, finance, organization and businessesThe 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 modern
深圳南山热电股份有限公司2021年年度报告全文
enterprise 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
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 | Meeting resolutions |
| First extraordinary shareholders’ general meeting of 2021 | Extraordinary shareholders’ general meeting | 39.27% | February 19, 2021 | February 19, 2021 | Deliberated and approved proposals including: Amendment of the Article of Association of Shenzhen Nanshan Power Co., Ltd.; Amendment of the Rules of Procedure for Shareholders General Meeting of Shenzhen Nanshan Power Co., Ltd.; Amendment of the Rules of Procedure for Board of Directors of Shenzhen Nanshan Power Co., Ltd. and Amendment of the Rules of Procedure for Board of Supervisory of Shenzhen Nanshan Power Co., Ltd. |
| Annual General Meeting of 2020 | AGM | 39.20% | April 16, 2021 | April 16, 2021 | Deliberated and approved proposals including: Report on the Work of BOD for year of 2020; Report on the Work of BOS for year of 2020; Financial Report for year of 2020; Profit Distribution Plan for year of 2020; Annual Report of 2020 (full-text) and its Summary; Guarantee Provided by the Company for its Controlling Subsidiary in 2021; Appointment of Auditing Institution for year of 2021 and Remuneration Determination; Remuneration of the Chairman for year of 2021 |
| Second extraordinary shareholders’ general meeting of 2021 | Extraordinary shareholders’ general meeting | 39.19% | April 26, 2021 | April 26, 2021 | Deliberated and approved 12 proposals related to the renewal of the Company including Election of Mr. Li Xinwei as the Non-independent Director of the 9th BOD of the Company |
| Third extraordinary shareholders’ general | Extraordinary shareholders’ general meeting | 39.18% | September 13, 2021 | September 13, 2021 | Deliberated and approved the Proposal to Re-elected Some Non-independent Director of 9th BOD of the Company; Proposal on Purchasing Wealth |
深圳南山热电股份有限公司2021年年度报告全文
| meeting of 2021 | Management products with Idle Own Funds |
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
V. Directors, supervisors and senior officers
1. Basic information
| Name | Title | Working status | Sex | Age | Start dated of office term | End date of office term | Shares held at period-begin (share) | Stock options | Number of restricted shares granted (share) | Number of shares increased in this period (share) | Number of shares decreased in this period (share) | Other changes (share) | Shares held at period-end (share) | Reasons for increase or decrease of shares |
| Li Xinwei | Chairman | Currently in office | M | 56 | August 28, 2017 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Hu Ming | Vice chairman | Currently in office | M | 51 | September 13, 2021 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Huang Bangxin | Vice chairman | Leave office | M | 41 | April 26, 2021 | August 20, 2021 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Li Hongsheng | Vice chairman | Leave office | M | 58 | January 13, 2011 | April 26, 2021 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Huang Qing | Director | Currently in office | M | 50 | June 3, 2019 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Chen Yuhui | Director | Currently in office | M | 56 | August 28, 2017 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| GM | Currently in office | M | 56 | August 11, 2017 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Wu Guowen | Director | Currently in office | M | 56 | April 25, 2016 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
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| Standing Deputy GM | Currently in office | M | 56 | April 1, 2016 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Sun Huirong | Director | Currently in office | M | 38 | April 26, 2021 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Li Wenying | Director | Leave office | M | 42 | June 3, 2019 | April 26, 2021 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Mo Jianmin | Independent director | Currently in office | M | 55 | November 17, 2017 | November 17, 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Chen Zetong | Independent director | Currently in office | M | 51 | November 17, 2017 | November 17, 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Du Wei | Independent director | Currently in office | M | 66 | November 11, 2019 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Ye Qiliang | Chairman of supervisory board | Currently in office | M | 58 | November 17, 2017 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Li Caijun | Supervisor | Currently in office | M | 43 | April 26, 2021 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Li Zhiwei | Supervisor | Leave office | M | 41 | June 3, 2019 | April 26, 2021 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Liao Junkai | Supervisor | Currently in office | M | 33 | June 3, 2019 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Qian Wenhui | Employee representative supervisor | Currently in office | M | 53 | April 26, 2021 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Lu Yindi | Employee representative supervisor | Currently in office | F | 39 | April 26, 2021 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Liang Jianqiang | Employee representative | Leave office | M | 53 | November 12, 2014 | April 26, 2021 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
深圳南山热电股份有限公司2021年年度报告全文
| supervisor | ||||||||||||||
| Peng Bo | Employee representative supervisor | Leave office | M | 48 | November 17, 2017 | April 26, 2021 | 1,527 | 0 | 0 | 0 | 0 | 0 | 1,527 | |
| Zhang Jie | Deputy GM | Currently in office | F | 53 | December 30, 2006 | April 26, 2024 | 17,325 | 0 | 0 | 0 | 0 | 0 | 17,325 | |
| Secretary of the Board | Leave office | F | 53 | December 23, 2015 | April 26, 2021 | |||||||||
| Zou Yi | Secretary of the Board | Currently in office | M | 48 | April 26, 2021 | April 26, 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Dai Xiji | CFO | Leave office | M | 52 | November 17, 2017 | March 30, 2021 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total | -- | -- | -- | -- | -- | -- | 18,852 | 0 | 0 | 0 | 0 | 0 | 18,852 | -- |
During the reporting period, whether there was any departure of directors and supervisors and dismissal of Senior Officers
√ Yes □ No
On 19 August 2021, BOD of the Company received a written resignation report from Director and Deputy Chairman of the CompanyMr. Huang Bangxin. Mr. Huang resigned as Director and Deputy Chairman of the 9
thBOD of the Company due to work reasons; andat end of March 2021, BOD received a written resignation report from CFO of the Company Mr. Dai Xiji, Mr. Dai resigned as CFOof the Company for work reasons.
Changes of directors, supervisors and senior officers
√Applicable □ Not applicable
| Name | Title | Type | Date | Reason |
| Li Hongsheng | Vice chairman | Leaving at the end of the term of office | April 26, 2021 | |
| Huang Bangxin | Vice chairman | Be elected | April 26, 2021 | |
| Huang Bangxin | Vice chairman | Leave office | August 20, 2021 | Job changes |
| Hu Ming | Vice chairman | Be elected | September 13, 2021 | |
| Li Wenying | Director | Leaving at the end of the term of office | April 26, 2021 | |
| Sun Huirong | Director | Be elected | April 26, 2021 | |
| Li Zhiwei | Supervisor | Leaving at the end of the term | April 26, 2021 |
深圳南山热电股份有限公司2021年年度报告全文
| of office | ||||
| Li Caijun | Supervisor | Be elected | April 26, 2021 | |
| Liang Jianqiang | Employee supervisor | Leaving at the end of the term of office | April 26, 2021 | |
| Peng Bo | Employee supervisor | Leaving at the end of the term of office | April 26, 2021 | |
| Qian Wenhui | Employee supervisor | Be elected | April 26, 2021 | |
| Lu Yindi | Employee supervisor | Be elected | April 26, 2021 | |
| Dai Xiji | CFO | Leave office | March 30, 2021 | Job changes |
| Zou Yi | Secretary of the Board | Be elected | April 26, 2021 | |
| Zhang Jie | Secretary of the Board | Leaving at the end of the term of office | April 26, 2021 |
2. Post-holding
Professional background, major working experience and present main responsibilities in Company of directors, supervisors andsenior officers at the presentMr. Li Xinwei was born in 1965, communist party member, a senior accountant, a postgraduate of Xiamen University, and a masterof business administration. From 1984 to 1992, he held the post of director of the accounting department of Guangdong NuclearPower Joint Venture Co., Ltd.; from 1992 to 2006, he served as the financial manager of Shenzhen Worldsun Enterprises Co., Ltd.and he served as the director of finance department of Shenzhen Mawan Power Co., Ltd., the chief accountant and the director offinance department of Shenzhen Energy Group Power Generation Branch, the deputy director of capital office of Shenzhen EnergyGroup Co., Ltd. (at ministerial level), the director and deputy general manager of Shenzhen Mawan Power Co., Ltd.; from 2004 to2006, he also served as the chairman of Huizhou City Gas Development Co., Ltd.; from 2006 to August 2017, he held the post ofmanaging director of Shenzhen Energy Finance Co., Ltd., he also holds the post of chairman of Sichuan Shenzhen Energy PowerInvestment Holding Co., Ltd. from 2015 to October 2018; and he has held the post of chairman and director of the Company sinceAugust 2017, since July 2018, he has been the secretary of party general branch and secretary of the party committee of the company,now served as director of Shenzhen Energy Group Co., Ltd., chairman of Shenzhen Shen Nan Dian Environment Protection Co., Ltd.,and chairman of Shenzhen Shennandian Turbine Engineering Technology Co., Ltd.
Mr. Hu Ming, born in 1970, a member of China National Democratic Construction Association, master, and senior engineer. FromMarch 2003 to December 2019, he worked at the Housing and Construction Bureau and Auditing Bureau of Nanshan District. FromJanuary 2020 to August 2021, he worked as managing director of Shenzhen Dashahe Construction Investment Co., Ltd. andmanaging director of Shenzhen Nanshan Anju Construction Development Co., Ltd. Since September 2021, he acts as the managingdirector of Shenzhen Guangju Energy Co.,Ltd., and he acts as the vice president of the company since September 2021.
深圳南山热电股份有限公司2021年年度报告全文
Mr. Huang Qing, born in 1971, communist party member, intermediate economist, master of economics, graduated from WuhanUniversity with a major in national economic planning and management. He successively served as a staff member, deputy chief staffmember, and a chief staff member of the General Office of Shenzhen Municipal Government, deputy chief of the General Office ofShenzhen Municipal Government, chief of the General Office of Shenzhen Municipal Government, deputy departmental-levelsecretary of the General Office of Shanxi Provincial Government, deputy director of Shanxi Provincial Government's GuangzhouOffice and a member of the Party Group. He currently serves as deputy general manager of Shenzhen Capital Holding Co., Ltd.,concurrently serves as director and president of Guangzhou NasSoft Information Technology Co., Ltd., director of Shenzhen EnergyGroup Co., Ltd., director and vice president of Shenzhen Water Investment Co., Ltd., director of Shenzhen HTI Group Co., Ltd.,director of Xiong'an Lvyan Zhiku Co., Ltd., director of Shenzhen Institute of Building Research Co., Ltd., supervisor of ShenzhenYixin Investment Co., Ltd., and the director of Shum Yip Investment Development Co., Ltd .; and he serves as the director of theCompany since June 2019.
Mr. Chen Yuhui was born in 1965, communist party member, a senior engineer, graduated from Shanghai Jiao Tong University andobtained a bachelor's degree in marine power and a master's degree in vibration, shock & noise (postgraduate degree). In 1989, heworked in the maintenance department of Shenyang Liming Gas Turbine Co., Ltd.; from December 1989 to June 2006, he worked inShenzhen Energy Group Yueliangwan Power Plant, and successively held the posts of chief-operator of operation department,specialist engineer of general office, deputy director of maintenance department, factory deputy manager, factory manager, etc.; fromJune 2006 to July 2014, he worked in Shenzhen Energy East Power Plant and held the posts of deputy general manager and operationdirector; from August 2017 to present, he served as the chairman, general manager, from May 2019 to present, he has been thedeputy secretary of the party committee of the company, and the chairman of Shen Nan Dian (Zhongshan) Electric Power Co., Ltd.
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. from August 2013 to March 2018, heserves as chairman of Shenzhen Server Petrochemical Supplying Co., Ltd. from March 2018 to September 2021, he serves as director,standing deputy GM of the Company since April 2016.
Mr. Sun Huirong, born in 1983, a member of the Communist Party of China, master degree, intermediate engineer title. He used tobe a senior staff member and project leader of Shenzhen Geotechnical Investigation & Surveying Institute (Group) Co., Ltd., theinvestment director of Shenzhen Deep Share China Investment Management Co., Ltd., and the senior manager and deputy sectionhead of research department and the deputy director of strategic research and M&A department of Shenzhen Capital Holdings Co.,Ltd.. He serves as the director of asset management department of Shenzhen Capital Holdings Co., Ltd.,and serves as a director ofthe company since April 2021.
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., independent director of Shenzhen Zhuolineng Technology Co., Ltd., and executive director of Shenzhen Yishanghui Investment
深圳南山热电股份有限公司2021年年度报告全文
Co., Ltd. He serves as independent director of 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 2003 to 2006, he served as the presiding judgeat the Economic Trial Division; from July to August 2002, he practiced as a judicial assistant in the High Court of Hong Kong; 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., an independent director of non-listed company Funde Insurance Holding Co., Ltd., anindependent director of Funde Sino Life Co., Ltd., and an independent director of Sino Life Assets Management Co., Ltd. He servesan independent director of the Company since November 2017.
Mr. Du Wei, born in 1955, communist party member, senior engineer, Ph.D., graduated from the Institute of Plasma Physics ChineseAcademy of Sciences, majoring in nuclear fusion and plasma physics. He served as a cadre of the National Energy Commission,assistant engineer and principal staff member of the Yangtze River Basin Planning Office, engineer and deputy manager of ChinaNanshan Development Co., Ltd., deputy general manager and general manager of Shenzhen Changjiang Computer IndustryCorporation, deputy director and director of the senior manager evaluation and recommendation center of the OrganizationDepartment of Shenzhen Municipal Committee, deputy general manager of Shenzhen Expressway Development Co., Ltd.; presidentof Shenzhen International Western Logistics Co., Ltd., general manager of Shenzhen International Qianhai Industry (Shenzhen) Co.,Ltd., and senior consultant of Shenzhen International Business Management (Shenzhen) Co., Ltd. He is currently Current ExecutiveDirector and GM of Shenzhen Borun Investment Co., Ltd., Executive Director and GM of Shenzhen Tianyu Freight Forwarding 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 1997to 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 September 2021, he has also served as the chairman of Shenzhen Server Petrochemical Supplying Co., Ltd. SinceNovember 2017, he has been the chairman of the company's board of supervisors.
Mr. Li Caijun, born in 1978, a member of the Communist Party of China, master degree. He was an accounting teacher ofChongqing Beibei Vocational Education Center, the financial manager of Chongqing Yanlong Property Development Co., Ltd., themanager of investment banking department of Shenzhen Energy Finance Co., Ltd., the director and deputy director of financialmanagement department of Shenzhen Special Zone Construction and Development Group Co., Ltd., the deputy director of strategicresearch and M&A department of Shenzhen Capital Holdings Co., Ltd., and the chief financial officer of Shenzhen Water Investment
深圳南山热电股份有限公司2021年年度报告全文
Group; He serves as the director of financing plan department of Shenzhen Capital Holdings Co., Ltd., and serves as the supervisorof the company since April 2021.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. Form November 2020 to November 2021 he serves as supervisor of Shenzhen Academy of BuildingResearch Co., Ltd. From June 2021, he serves as the general manager of the asset management center of Shenzhen Kelu ElectronicTechnology Co., Ltd. He has been a supervisor of the Company since June 2019.
Mr. Qian Wenhui, born in 1968, accountant, bachelor degree, graduated from Changsha Normal University of Water Resources andElectric Power in 1990, majoring in financial accounting. From July to October 1990, he worked at Wuhan Yangluo Power Plant.From October 1990 to August 2003, he worked at the finance department of the Company. From August 2003 to October 2011, hewas the chief financial officer of Zhongshan Zhongfa Power Co., Ltd.. From March 2014 to December 2016, he served as asupervisor of Zhongshan Shenzhong Real Estate Development Co., Ltd. and Zhongshan Shenzhong Real Estate Investment andProperty Co., Ltd.. He has been serving as the director of audit risk control department of the Company since November 2010, asupervisor of Shenzhen Server Petrochemical Supplying Co., Ltd since May 2014, and a supervisor of the company's employeerepresentative since April 2021.
Ms. Lu Yindi, born in 1982, a member of the Communist Party of China, master degree, graduated from the School of Management,Huazhong University of Science and Technology in 2008, majoring in Management Science and Engineering. In July 2008, shejoined the Global Supply Chain Management Office of iDSBG Business Group of Foxconn Technology Group and successivelyserved as deputy section chief, section chief and specialist manager of supply Chain Management Office. Since August 2018, she hasbeen working in the Company as the director of contract and bidding management of the safety technology department,the deputydirector and the director of the supply department, and the deputy director of fuel management department of Nanshan Power Factory.She has been the director of the board of directors office of the company since June 2021. Since April 2021, he has been working asthe supervisor of the company's employee representative.
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. Sheworked in the finance department and office after joining the Company, and successively held the posts of secretary, office director,general manager assistant and employee supervisor of the Company since 1993. From 2014 to September 2018, concurrently servedas the chairman of Shenzhen Shen Nan Dian Environment Protection Co., Ltd., from December 2015 to April 2021, he concurrentlyserved as the Secretary of the Board of Directors of the Company, she holds the Deputy General Manager of the Company sinceDecember 2006.Mr. Zou Yi, born in 1973, a member of the Communist Party of China, economic manager, master of economics. From July 1994 toSeptember 2007, he worked at the headquarters of Shenzhen Energy Group Co., Ltd., successively served as the business director offinance department, the deputy director of fund office and the business director of secretary office of the board of directors. FromSeptember 2007 to December 2017, he served as the head of the fund department of Shenzhen Energy Finance Co., Ltd.; fromDecember 2017 to July 2019, he served as the deputy general manager of Shenzhen Energy Finance Co., Ltd.. From August 2017 toNovember 2018, he concurrently served as a director of Huizhou Shenzhen Energy Fengda Power Co., Ltd.. From August 2019 toApril 2021, he served as the director of the office of the board of directors of the Company, and from July 2020 to April 2021, he
深圳南山热电股份有限公司2021年年度报告全文
concurrently served as the director of the administration and management department of the Company. He serves as the secretary ofthe board of the Company from April 2021.
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 |
Post-holding in other unit
√Applicable □ Not applicable
| Name | Name of other units | Position in other unit | Worked from | Expired on | Received remuneration from other unit (Y/N) |
| 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 | ||
| Hu Ming | Shenzhen Guangju Energy Co., Ltd. | Director, GM | August 20, 2021, August 4, 2021 | Y | |
| Huang Qing | Shenzhen Capital Holdings 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 | ||
| Ye Qiliang | Shenzhen Server Petrochemical Supplying Co., Ltd | Chairman | September 2, 2021 | N | |
| Sun Huirong | Shenzhen Capital Holdings Co., Ltd. | Head of Asset Management Department | April 18, 2021 | Y | |
| Li Caijun | Shenzhen Capital Holdings Co., Ltd. | Deputy | April 18, 2021 | Y |
深圳南山热电股份有限公司2021年年度报告全文
| director of accounting and finance department | |||||
| Liao Junkai | Shenzhen Kelu Electronic Technology Co., Ltd. | General Manager of Asset Management Center | June 7, 2021 | Y | |
| Qian Wenhui | Shenzhen Serve Energy Co., Ltd. | Supervisor | September 2, 2021 | N | |
| Mo Jianmin | Da Hua Certified Public Accountants | Partner | June 9, 2014 | Y | |
| Shenzhen Kunpeng Holdings Co., Ltd. | Independent director | October 1, 2019 | Y | ||
| Shenzhen Zhuolineng Technology Co., Ltd. | Independent director | December 1, 2020 | Y | ||
| Chen Zetong | Junzejun Law Offices | Senior Partner | September 1, 2012 | Y | |
| Du Wei | Shenzhen Borun Investment Co., Ltd. | Director, General Manager | February 1, 2020 | N | |
| Shenzhen Tianyu Freight Forwarding Co., Ltd. | Executive Director, General Manager | February 1, 2021 | N |
Punishment of securities regulatory authority in recent three years to the Company’s current and outgoing directors, supervisors andsenior officers during the reporting period
□ Applicable √ Not applicable
3. Remuneration for directors, supervisors and senior officers
Decision-making procedures, recognition basis and payment for directors, supervisors and senior officers
1. Decision-making process: In accordance with relevant regulations of “Articles of Association”, the stockholders' meeting woulddetermine the remuneration of directors and supervisors, and the board of directors would determine the remuneration of seniorofficers.
2. Determine basis: Currently, except for the independent directors, the Company has no remuneration system for non-independentdirectors and supervisors, the directors and staff supervisor only received the pay for the post actually served in the Company. TheBoard of Directors will define the annual remuneration standard of the senior officers of the Company on the basis of annualoperating performance, post rank and other factors and in consideration of the industrial remuneration level. It will decide theactually paid remuneration standard by referring to the examination of annual operation performance and audit status.
3. Actual payment: the Company is strictly paying the remuneration to directors in line with the decision-making process anddetermining basis on remuneration for directors, supervisors and senior officers, the relevant expenses arising from transportation,
深圳南山热电股份有限公司2021年年度报告全文
accommodation, research, study and attending a meeting are borne by the Company.
Remuneration for directors, supervisors and senior officers in reporting period
In 10 thousand Yuan
| 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 | 56 | Currently in office | 85.5 | N |
| Li Hongsheng | Vice chairman | M | 58 | Leave office | 0 | Y |
| Huang Bangxin | Vice chairman | M | 41 | Leave office | 0 | Y |
| Hu Ming | Vice chairman | M | 51 | Currently in office | 0 | Y |
| Huang Qing | Director | M | 50 | Currently in office | 0 | Y |
| Chen Yuhui | Director, GM | M | 56 | Currently in office | 77.5 | N |
| Wu Guowen | Director, Standing Deputy GM | M | 56 | Currently in office | 72 | N |
| Sun Huirong | Director | M | 38 | Currently in office | 0 | Y |
| Li Wenying | Director | M | 42 | Leave office | 0 | Y |
| Mo Jianmin | Independent director | M | 55 | Currently in office | 11.9 | N |
| Chen Zetong | Independent director | M | 51 | Currently in office | 11.9 | N |
| Du Wei | Independent director | M | 66 | Currently in office | 11.9 | N |
| Ye Qiliang | Chairman of supervisory board | M | 58 | Currently in office | 71.5 | N |
| Li Zhiwei | Supervisor | M | 41 | Leave office | 0 | Y |
| Li Caijun | Supervisor | M | 43 | Currently in office | 0 | Y |
| Liao Junkai | Supervisor | M | 33 | Currently in office | 0 | Y |
深圳南山热电股份有限公司2021年年度报告全文
| Liang Jianqiang | Employee supervisor | M | 53 | Leave office | 44.07 | N |
| Peng Bo | Employee supervisor | M | 48 | Leave office | 39.5 | N |
| Qian Wenhui | Employee supervisor | M | 53 | Currently in office | 41.23 | N |
| Lu Yindi | Employee supervisor | F | 39 | Currently in office | 31.82 | N |
| Zhang Jie | Deputy GM | F | 53 | Currently in office | 69.5 | N |
| Zou Yi | Secretary of the Board | M | 48 | Currently in office | 57.43 | N |
| Dai Xiji | CFO | M | 52 | Leave office | 11.58 | N |
| Total | -- | -- | -- | -- | 637.33 | -- |
VI. Responsibility performance of directors during the reporting period
1. The board of directors during the reporting period
| Session of meeting | Date of meeting | Disclosure date | Meeting resolutions |
| The 16th Extraordinary Meeting of the 8th Board of Directors | February 1, 2021 | February 2, 2021 | Deliberated and approved proposals including: Amendment of the Article of Association of Shenzhen Nanshan Power Co., Ltd.; Amendment of the Rules of Procedure for Shareholders General Meeting of Shenzhen Nanshan Power Co., Ltd.; Amendment of the Rules of Procedure for Board of Directors of Shenzhen Nanshan Power Co., Ltd., and Holding the First Extraordinary General Meeting of Shareholders for the year of 2021 |
| The 8th session of 8th board of directors | March 24, 2021 | March 26, 2021 | Deliberated and approved proposals including: Report on the Work of BOD for year of 2020; Financial Report for year of 2020; the Provision for Impairment of Various Assets in 2021; Profit Distribution Plan for year of 2020; Request for Consideration of the Annual Internal Control Evaluation Report for 2020; Annual Report of 2020 (full-text) and its Summary; Comprehensive Management Plan for year of 2021; Accrual of Remuneration for year of 2021; The Company and its Controlling Subsidiary Applied for Financing Comprehensive Credit and Provided Guarantee for year of 2021; Appointment of Auditing Institution for year of 2021 and Remuneration Determination and Holding the Annual General Meeting of 2020. |
| The 17th | April 9, 2021 | April 10, 2021 | Deliberated and approved proposal on General Election of the BOD |
深圳南山热电股份有限公司2021年年度报告全文
| Extraordinary Meeting of the 8th Board of Directors | of the Company and deliberated the proposal on Holding the 2nd extraordinary general meeting of shareholders of 2021 | ||
| The 18th Extraordinary Meeting of the 8th Board of Directors | April 21, 2021 | April 23, 2021 | Deliberated and approved the First Quarterly Report 2021 (full-text and text) |
| The 1st session of 9th board of directors | April 26, 2021 | April 27, 2021 | Deliberated and approved proposal on Election of the Chairman and deputy Chairman of 9th BOD of the Company, proposal on Election of the Specific Committee Members of 9th BOD of the Company, proposal on Appointment of the GM of the Company; proposal on Appointment of Secretary of the Board and proposal on Appointment of other senior officers of the Company. |
| The 2nd session of 9th board of directors | August 18, 2021 | August 20, 2021 | Deliberated and approved Semi-Annual Report of 2021( full-text) its Summary |
| The 1st Extraordinary Meeting of the 9th Board of Directors | August 25, 2021 | August 27, 2021 | Deliberated and approved proposal on Re-election Some Non-independent Directors of 9th BOD, Use of Idle Own-funds to Purchase Wealth Management Products and Holding the Third Extraordinary General Meeting of Shareholders for 2021 |
| The 2nd Extraordinary Meeting of the 9th Board of Directors | September 13, 2021 | September 14, 2021 | Deliberated and approved proposal on Election of the Deputy Chairman of 9th BOD; proposal on adjustment of specific committee members of 9th BOD. |
| The 3rd Extraordinary Meeting of the 9th Board of Directors | October 22, 2021 | October 26, 2021 | Deliberated and approved The Third Quarterly Report of 2021 |
| The 4th Extraordinary Meeting of the 9th Board of Directors | November 11, 2021 | November 12, 2021 | Deliberated and approved proposal on Investment for Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. |
2. The attending of directors to Board meetings and shareholders general meeting
| The attending of directors to Board Meeting and Shareholders General Meeting | |||||||
| Director | Times of Board meeting supposed to attend in the report period | Times of Presence | Times of attending the Board Meeting by communicatio | 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 |
深圳南山热电股份有限公司2021年年度报告全文
| n | |||||||
| Li Xinwei | 10 | 2 | 8 | N | 4 | ||
| Li Hongsheng | 4 | 0 | 4 | N | 2 | ||
| Huang Bangxin | 3 | 1 | 2 | N | 1 | ||
| Hu Ming | 3 | 1 | 2 | N | 1 | ||
| Huang Qing | 10 | 2 | 8 | N | 3 | ||
| Chen Yuhui | 10 | 2 | 8 | N | 4 | ||
| Wu Guowen | 10 | 2 | 8 | N | 4 | ||
| Sun Huirong | 6 | 2 | 4 | N | 2 | ||
| Li Wenying | 4 | 0 | 4 | N | 1 | ||
| Mo Jianmin | 10 | 2 | 8 | N | 4 | ||
| Chen Zetong | 10 | 1 | 8 | 1 | N | 1 | |
| Du Wei | 10 | 2 | 8 | N | 4 |
Explanation of absent the Board Meeting for the second time in a rowNil
3. Objection for relevant events from directors
Directors come up with objection about Company’s relevant matters
□ Yes √ No
No directors come up with objection about Company’s relevant matters in the Period
4. Other explanation about responsibility performance of directors
The opinions from directors have been adopted
√ Yes □ No
Director's statement to the Company that a proposal has been or has not been adoptedDuring the reporting period, all the directors of the company were diligent and conscientious, carried out work in strict accordancewith the relevant regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange, as well as thecompany's Articles of Association and Rules of Procedure for the Board of Directors, paid close attention to the company'sstandardized operation and business situation, studied and discussed and offered advice and suggestions and made scientific andprudent decisions on various proposals submitted to the board of directors according to the actual situation, so as to ensure thesustainable, stable and healthy development of the company's business operations and safeguard the legitimate rights and interests ofthe company and all shareholders.VII. The special committees under the board during the reporting period
| Committee name | Members | Number of meetings | Date of | Meeting content | Important comments and suggestions made | Other performance of duties | Specific circumstances of the |
深圳南山热电股份有限公司2021年年度报告全文
| held | meeting | objection (if applicable) | |||||
| Strategy and investment management committee | Li Xinwei, Li Hongsheng, Huang Qing, Chen Yuhui, Wu Guowen | 1 | March 24, 2021 | Deliberation of the Report on Performance of Strategy & Investment Management Committee of the Board for year of 2020 | The motion was passed unanimously after full communication & discussion among the committee members according to the actual condition of the Company | N/A | |
| Strategy and investment management committee | Li Xinwei, Huang Qing, Chen Yuhui, Wu Guowen | 1 | August 25, 2021 | Deliberation of the Proposal on Purchasing Wealth Management products with Idle Own Funds | The motion was passed unanimously after full communication & discussion among the committee members according to the actual condition of the Company | N/A | |
| Strategy and investment management committee | Li Xinwei, Hu Ming, Huang Qing, Chen Yuhui, Wu Guowen | 1 | November 11, 2021 | Deliberation of the proposal on Investment for Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. | The motion was passed unanimously after full communication & discussion among the committee members according to the actual condition of the Company | N/A | |
| Nomination Committee | Chen Zetong, Li Hongsheng, Du Wei | 2 | March 24, 2021 | Deliberation of the Report on Performance of Nomination Committee of the Board for year of 2020 | The motion was passed unanimously after full communication & discussion among the committee members according to the actual condition of the Company | N/A | |
| April 9, 2021 | Deliberation of the Proposal on General Election of BOD of the Company | The motion was passed unanimously after full communication & discussion among the | N/A |
深圳南山热电股份有限公司2021年年度报告全文
| committee members according to the actual condition of the Company。 | |||||||
| Nomination Committee | Chen Zetong, Huang Bangxin, Du Wei | 1 | April 26, 2021 | Deliberation of the 1. proposal on appointment of GM of the Company; 2. proposal on appointment of Secretary of the Board; 3.proposal on appointment of other senior officers of the Company | All motions were passed unanimously after full communication & discussion among the committee members according to the actual condition of the Company | N/A | |
| Nomination Committee | Chen Zetong, Du Wei | 1 | August 25, 2021 | Deliberation of the Proposal to Re-elected Some Non-independent Director of 9th BOD of the Company; | The motion was passed unanimously after full communication & discussion among the committee members according to the actual condition of the Company | N/A | |
| Remuneration and Appraisal Committee | Mo Jianmin, Wu Guowen, Du Wei | 1 | March 24, 2021 | Deliberation of the 1. Report on Performance of Remuneration & Appraisal Committee of the Board for year of 2020; 2.Accrual of the Remuneration for year of 2021 | All motions were passed unanimously after full communication & discussion among the committee members according to the actual condition of the Company | N/A | |
| Audit Committee | Mo Jianmin, Li Wenying, Chen Zetong | 2 | February 3, 2021 | Hearing of the Communication Letter with Governance during the Ongoing Stage of Annual Audit for year of 2020 submitted by Lixin Zhonglian CPA | N/A | ||
| March 24, 2021 | Hearing of the 1.Annual Auditing Report of 2020 and Auditing Report of Internal Control for year | All motions were passed unanimously after full communication & | N/A |
深圳南山热电股份有限公司2021年年度报告全文
| of 2020; deliberation of the 3. Request for Consideration of the Annual Internal Control Evaluation Report for 2020; 4. Appointment of Auditing Institution for year of 2021 and Remuneration Determination; 5.Report on Performance of Auditing Committee of the Board for year of 2020; | discussion among the committee members according to the actual condition of the Company | ||||||
| Audit Committee | Mo Jianmin, Sun Huirong, Chen Zetong | 2 | November 22, 2021 | Hearing of the Auditing Plan of Shenzhen Nanshan Power Co., Ltd. for year of 2021 submitted by Lixin Zhonglian CPA | N/A | ||
| December 30, 2021 | Hearing of the Communication Letter Between CPA and the Governance submitted by Lixin Zhonglian CPA | N/A |
VIII. Works from Supervisory Committee
The 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 period
IX. Particulars of workforce
1. Number of Employees, Professional categories, Education background
| Employee in-post of the parent Company at period-end (people) | 258 |
| Employee in-post of main Subsidiaries at period-end (people) | 134 |
| The total number of current employees at period-end (people) | 392 |
| The total number of current employees to receive pay (people) | 392 |
| Retired employee’ s expenses borne by the parent Company and main Subsidiaries (people) | 0 |
深圳南山热电股份有限公司2021年年度报告全文
| Professional categories | |
| Types of professional category | Numbers of professional category |
| Production staff | 220 |
| Sales staff | 0 |
| Technical staff | 0 |
| Financial staff | 24 |
| Administration staff | 148 |
| Total | 392 |
| Education background | |
| Type of education background | Numbers (people) |
| High school and below | 48 |
| 3-years regular college graduate and Polytechnic school graduate | 177 |
| Bachelor degree | 146 |
| Master and above | 21 |
| Total | 392 |
2. Remuneration Policy
According to the Company's annual operation performance combined with the market-oriented remuneration in the region andindustry, the Board implements a principle of annual remuneration provision with the fixed remuneration as main body, which will, atthe same time of controlling remuneration cost, create conditions for the stable workforce. Meanwhile, special incentive mechanismwill be available according to the completion of annual business objectives and core mission so as set up an incentive mechanismlinked with operation performance and exert the incentive role of remuneration.The remuneration of the chairman of board will be submitted to the shareholders' meeting for approval after it has been deliberatedby the board of directors. The remuneration of the general manager, deputy general manager and other senior officers’ level will beprepared by the Board Remuneration and Appraisal Committee and then be submitted to the board of directors for approval. TheBoard 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. Training plan
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 that
深圳南山热电股份有限公司2021年年度报告全文
formulated 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, organize safety education training for thesafety principal, principal and security officer of the Company headquarters and affiliated companies, conducting accident emergencyrescue drills and emergency response capability training, 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 by adopting various forms such as issuingbooks and materials, bringing in teachers and experts, and leading party members to go out; actively carrying out the study andeducation works for Party members; strictly implement the “three meetings and one class” system, and develop activities such as“secretary teaches party lessons”. We will ensure that party organizations play the role of battle-bastion and the majority of partymembers to play a vanguard and exemplary role through training and study.
4. Labor outsourcing
□ Applicable √ Not applicable
X. Profit distribution and transfer of public reserve into share capitalFormulation, Implementation and Adjustment of Profit Distribution Policy Especially Cash Dividend policy during the ReportingPeriod
□ Applicable √ Not applicable
The Company is profitable during the reporting period and the parent company has positive profit available for distribution toshareholders without cash dividend distribution plan proposed
□ Applicable √ Not applicable
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.
XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan orother employee incentives
□ Applicable √ Not applicable
The Company has no equity incentive plan, employee stock ownership plans or other employee incentives.
深圳南山热电股份有限公司2021年年度报告全文
XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
According to the Basic Regulation of Enterprise Internal Control and its supporting guidelines, the company updated and improvedthe company's internal control system in a timely manner, and established a scientific and applicable internal control system. Theaudit committee and the internal audit department jointly constituted the company's risk internal control management organizationsystem to supervise and evaluate the company's internal control management. Through the operation, analysis and evaluation of theinternal control system, the company has effectively prevented risks in operation and management and promoted the realization ofinternal control objectives.
2. Details of major defects in IC appraisal report that found in reporting period
□ Yes √ No
XIII. Management and controls on the subsidiary during reporting periodNot applicable
XIV. Internal control self-assessment report or internal control audit report
1. Self-assessment Report of Internal Control
| Disclosure date of full internal control assessment report | March 25, 2022 | |
| Disclosure index of full internal control assessment report | Assessment report of internal control for year of 2021, Juchao Website (http://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 | 94.98% | |
| 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 statements | 100.00% | |
| 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 | Major defects: under major operational activities, there are major defects in several companies which are |
深圳南山热电股份有限公司2021年年度报告全文
| 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. | 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. | |
| Quantitative standard | Major defects: mistaken amount ≥total assets in consolidated financial statement×0.5% | Major defects: amount of direct loss ≥total assets in consolidated financial statement ×0.5% |
深圳南山热电股份有限公司2021年年度报告全文
| 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% | 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 | |
2. Auditing report of internal control
√Applicable □ Not applicable
| 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 25, 2022 |
| Index of audit report of internal control (full-text) | Audit report of internal control for year of 2021, Juchao Website (http://www.cninfo.com.cn) |
| Opinion type of auditing report of IC | Standard unqualified |
| whether the non-financial report had major defects | No |
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2021年年度报告全文
XV. Rectification of Self-examination Problems in Special Governance Actions in ListedCompany
1. The term of office of the eighth session of board of directors and the eighth board of supervisors of the company ended inNovember 2020. At the end of November 2020, the company failed to conduct a new election in time according to the company'sproduction and operation, the communication with major shareholders and the procedures for recommending candidates, so all thedirectors and supervisors of the eighth session of the board of directors and the board of supervisors continued to perform their dueduties and obligations as directors and supervisors in accordance with laws and regulations. The company has officially started thework related to the election of the ninth session of board of directors and board of supervisors in February 2021. On February 26,2021, the company sent out the Letter on Recommending Candidates for the Ninth Board of Directors and the Letter onRecommending Candidates for the Ninth Board of Supervisors to the three major shareholders of the company. On March 1, 2021,the company sent out the Opinion Letter on Nomination of Candidates for Independent Director of the Board of Directors ofShenzhen Nanshan Power Co., Ltd. to the three independent director candidates. After the preliminary preparations for the electionof the Board of Directors and the Board of Supervisors, the company organized and held the eighth meeting of the nominationscommittee of the eighth board of directors, the 17
th interim meeting of the eighth board of directors, and the 15
thinterim meeting ofthe eighth board of supervisors on April 9, 2021 to review the Proposal on the New Election of the Board of Directors of theCompany and the Proposal on the New Election of the Board of Supervisors of the Company. On April 26, the company held thegeneral meeting of shareholders to review the proposals on the new elections of board of directors and board of supervisors.
2. Mainly due to conflict of working hours, some directors and supervisors failed to attend the general meeting of shareholders.However, the relevant directors and supervisors have attended the relevant meetings of the board of directors and the board ofsupervisors held prior to this meeting to review the proposals of the shareholders' general meeting, and have fully understood thecontents of the proposals to be submitted to the shareholders' general meeting and expressed their opinions. Relevant seniormanagement personnel of the company attended the shareholders' general meeting in accordance with relevant regulations andnotification requirements of the shareholders' general meeting, while other personnel worked at the site of the shareholders' generalmeeting and were ready to answer investors' questions at any time. In addition to the above circumstances, the directors, supervisorsand senior management of the company all attended (as non-voting attendees) or entrusted others to attend the meetings of the boardof directors and the board of supervisors. In the future, the company will more strictly implement the Rules of Procedures for GeneralMeetings of Shareholders and other relevant provisions, and remind the directors and supervisors to attend the general meeting ofshareholders.
深圳南山热电股份有限公司2021年年度报告全文
Section V. Environmental and Social Responsibility
1. Major environmental
The listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department
√ Yes □ No
| 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 | 60.75 ton | 457.5 ton | 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 | 34.54 ton | 228.75 ton | 0 |
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | Oxynitride | Concentrate emission from boiler uptake | 2 | In plant area of Zhongshan Nanlang Power Plant | <50 mg/m3 | GB13223 | 8.87 ton | 324.50 ton | 0 |
Construction and operation of the facilities preventing and controlling pollutionAll facilities are work normally, vary pollutant discharge are in standards.Environmental impact review and other environment protection administrative licensingThe aforesaid companies have pass the environment impact review and file in department of Environmental Protection of Guangdongprovince.Emergency plan for abrupt environmental accidentsThe plans have file in department of Environmental Protection of Guangdong province and corresponding environmental protectionbureau.Environmental self-monitoring plan
深圳南山热电股份有限公司2021年年度报告全文
We have prepared the plans of self-monitoring and approved by Environmental Protection Bureau; monitoring data will release onEnvironmental Protection Website on time.
Administrative penalties imposed for environmental issues during the reporting periodNilOther information need for releasedNilMeasures taken to reducing the carbon emissions during the reporting period and their effectiveness
□ Applicable √ Not applicable
Other environmental protection related informationThe Company shall comply with the relevant disclosure requirement for electricity-related industries of Shenzhen Stock ExchangeSelf-Regulatory Guidelines for Listed Companies No.3 - Disclosure of Industry InformationII. Social ResponsibilityWhen the global energy crisis broke out in 2021, there was a phenomenon of “power rationing” in China, the price of main energycontinued to rise sharply. The company’s annual average fuel price for power generation increased by 51.37% compared with 2020.The company’s on-grid electricity price seriously dropped away from the power generation cost. Under this circumstance, thecompany had the courage to assume social responsibilities, guaranteed the power supply with losses, and actively performed its duesocial responsibilities within the scope of its ability, and devoted to seeking healthy and harmonious development of the enterpriseand its employees, the enterprise and the society, and the enterprise and the environment:
1. Corporate governance: in compliance with the relevant laws and regulations, governance norms of listed Company as well as the
Company’s Articles of Association, continuously improve and strictly abide by the modern corporate management system and
governance norms, and strive to realize the clear division of powers and responsibilities of the general meeting of shareholders, theboard of directors, the board of supervisors, and the management, so that each performs its own functions,, effectively checks andbalances, and coordinates for operation. In accordance with the listed company's corporate governance standards and relatedregulations, the Company strictly implemented the decision-making procedures of the "three meetings", did a good job ininformation disclosure and investor relationship management in accordance with laws and regulations, actively maintained the publicimage of listed companies, and protected the legitimate interests of all shareholders.
2. Safety production: we seriously in line with the Law on Safety in Production and relevant laws and regulations, and the rules of“same responsibility of the Party & Government, double duties, concerted efforts and negligence of duty”; Take multiple measuressimultaneously to strengthen safety management, implement safety responsibilities at all levels, layer upon layer, and continue tocreate a new situation in safety work.
3. Environment protection: the Company has stringently complied with the national and local environment laws and regulations andconsistently adhered to the policy of eco-friendly power generation and cyclic economic development. Our works relating toenvironment protection were effectively implemented with satisfaction of all the emission standards, completed the environmentprotection target for the whole year.
4. In terms of epidemic prevention and control: the company strictly implemented the decision-making and deployment of the PartyCentral Committee and the State Council and the work requirements of the epidemic prevention and control command organizationsat all levels, and established a special agency for the prevention and control of the COVID-19 epidemic in a timely manner, andestablished an epidemic prevention and control responsibility mechanism with responsibility to individual and the grid managementand control system, drew up epidemic prevention guidelines, emergency plans and various work rules, tried every means to purchaseepidemic prevention materials, strengthened the publicity, education, and care support for employees. There were no confirmed cases,
深圳南山热电股份有限公司2021年年度报告全文
suspected cases or cases of asymptomatic infection being found among domestic employees. While doing a good job in theprevention and control of the epidemic, the company actively responded to the call for resumption of work and production, andorganized production and operation 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: According to the central government’s decision and deployment of continuing to vigorouslyimplement consumption assistance, responding to the Work Plan of Implementing Consumption Assistance for Rural Revitalizationof Shenzhen City in 2021 (SFBH (2021) No. 19), the Notice of the Municipal Pairing Assistance Work Leading Group Office onRefining the Expected Target of Consumption Assistance in 2021, and the Implementation of Consumption Assistance for RuralRevitalization of Nanshan District in 2021, in circumstances of extraordinary business difficulties in 2021, the company fulfilled itscorporate social responsibility and actively participated in consumption assistance under the leadership of capital group labor unionand guang ju gong union, purchasing a total of 258,200 yuan of poverty alleviation agricultural products.
III. Consolidating and expanding the achievements of poverty alleviation and ruralrevitalizationAccording to the central government’s decision and deployment of continuing to vigorously implement consumption assistance,responding to the Work Plan of Implementing Consumption Assistance for Rural Revitalization of Shenzhen City in 2021 (SFBH(2021) No. 19), the Notice of the Municipal Pairing Assistance Work Leading Group Office on Refining the Expected Target ofConsumption Assistance in 2021, and the Implementation of Consumption Assistance for Rural Revitalization of Nanshan District in2021, in circumstances of extraordinary business difficulties in 2021, the company fulfilled its corporate social responsibility andactively participated in consumption assistance under the leadership of capital group labor union and guang ju gong union,purchasing a total of 258,200 yuan of poverty alleviation agricultural products.
深圳南山热电股份有限公司2021年年度报告全文
Section VI. Important MattersI. 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
II. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.III. External guarantee out of the regulations
□ Applicable √ Not applicable
No external guarantee out of the regulations occurred in the period.IV. Statement on the latest “modified audit report” by BOD
□ Applicable √ Not applicable
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors(if applicable) for “Modified Audit Report” issued by CPA
□ Applicable √ Not applicable
VI. Explanation of the changes in accounting polices, accounting estimates or correction ofsignificant accounting errors compared with the financial report of the previous year
□ Applicable √ Not applicable
The Company had no changes in accounting policies, accounting estimates or correction of significant accounting errors during thereporting period.
深圳南山热电股份有限公司2021年年度报告全文
VII. Compare with last year’s financial report; explain changes in consolidation statement’sscope
□ Applicable √ Not applicable
There was no change in consolidation statement’s scope during the reporting period of the company.VIII. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
| Name of domestic accounting firm | LIXINZHONGLIAN CPAS (SPECIAL GENERAL PARTNERSHIP) |
| Remuneration for domestic accounting firm (in 10 thousand Yuan) | 73 |
| Continuous year of auditing service for domestic accounting firm | 3 |
| Name of domestic CPA | Cao Wei ，Liu Xinfa |
| Continuous year of auditing service for domestic CPA | 3 |
Re-appointed accounting firms in this period
□Yes √No
Appointment of internal control auditing accounting firm, financial consultant or sponsor
√Applicable □ Not applicable
LIXINZHONGLIAN CPAS (SPECIAL GENERAL PARTNERSHIP) was appointed as the auditing authority for the internal controlof the Company with expenses of 0.23 million Yuan .IX. Facing delising after the disclosure of annual report
□ Applicable √ Not applicable
X. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period.XI. Major litigation and arbitration of the Company
□ Applicable √ Not applicable
No major litigation and arbitration occurred in the periodXII. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
深圳南山热电股份有限公司2021年年度报告全文
XIII. 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.XIV. Major related party transaction
1. Related party transaction with routine operation concerned
□ Applicable √ Not applicable
The Company has no related party transaction with routine operation concerned occurred during the reporting period.
2. Related party transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related party transactions by assets acquisition and sold for the Company in Period.
3. Main related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in Period.
4. Contact of related credit and debt
□ Applicable √ Not applicable
No contact of related credit and debt occurred in the Period
5. Contact with the related finance companies
□ Applicable √ Not applicable
There are no deposits, loans, credits or other financial business between the Company, the related finance companies and relatedparties.
6. Transactions between the finance company controlled by the Company and related parties
□ Applicable √ Not applicable
There are no deposits, loans, credits or other financial business between the finance companies controlled by the Company andrelated parties
7. Other major related party transactions
□ Applicable √ Not applicable
No other major related party transactions occurred in the period
深圳南山热电股份有限公司2021年年度报告全文
XV. 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 16.953million 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
No major guarantees occurred in the Period
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 | Amount with impairment accrual for the overdue financial products |
深圳南山热电股份有限公司2021年年度报告全文
| which has not been recovered | |||||
| Bank financial products | Own funds | 109,752.07 | 56,000.07 | 0 | 0 |
| Total | 109,752.07 | 56,000.07 | 0 | 0 | |
Details of the single major amount, or high-risk trust investment with low security, poor fluidity
□ 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. 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 (10 thousand Yuan) (if applicable) | The assessed value of the assets involved in the contract (10 thousand Yuan) (if applicable) | Name of the evaluation organization (if applicable) | The base date evaluation (if applicable) | Pricing principles | Bargain price (10 thousand Yuan) | 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 | N | Not applicable | In progress | Failure to meet specific disclosure requirements |
深圳南山热电股份有限公司2021年年度报告全文
XVI. Other important events
√Applicable □ Not applicable
1. Matters related to the investment in the Zhongshan Prefabricated Building Industrialization Park project. On May 26, 2021, thecompany received a Feedback Letter on the Research and Investigation of Shennandian (Zhongshan) Building Industrialization ParkProject from Shenzhen SEZ Construction Group, who said that it entrusted a third-party intermediary agency to conduct a feasibilitystudy on the project, and it concluded that the project should not be approved based on the principle of prudence. Considering variousfactors, the company decided to terminate this investment. (For details, please refer to the Notice on Termination of Investment inZhongshan Prefabricated Building Industrial Park Project disclosed by the company in China Securities Journal, Securities Times,Hong Kong Commercial Daily and www.cninfo.com.cn, Notice No. : 2021-036)
2. T102-0011, T102-0155 land related matters
At the end of September, 2021, Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone Authority (hereinafterreferred to as "Shenzhen Qianhai Authority") issued the "Announcement on the Second Public Presentation of the Draft Revision(Exposure Draft) of Development Unit Planning of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone[Qianwan Area]" (hereinafter referred to as the "Announcement") on its official website, which publicly presented the draft revision(exposure draft) of development unit planning of Qianhai Shenzhen-Hong Kong modern service industry cooperation zone [Qianwanarea] for the second time, the publicity period was from September 27, 2021 to October 26, 2021.
Upon learning of the Announcement, the company immediately worked with special legal counsel to carefully study the content ofthe Announcement and related matters, and learned more and verified relevant information. On October 22, 2021, the companysubmitted the Opinions on the "Announcement of Shenzhen Qianhai Authority on the Second Public Presentation of the DraftRevision (Exposure Draft) of Development Unit Planning of Qianhai Shenzhen-Hong Kong Modern Service Industry CooperationZone [Qianwan Area]" to Shenzhen Qianhai Authority, raised relevant issues concerning the planning content of the land(Development Unit 13) where the company's subordinate Nanshan Power Factory is located in the "Announcement". Once again, weraised objections to the planning of Development Unit 13, and requested Shenzhen Qianhai Authority to fully consider the company'sindustrial situation and new development needs in the future and properly solve the related problems of the land (Development Unit
13) of the company's subordinate Nanshan Power Factory, so that the legitimate rights and interests of listed companies and theirshareholders could be effectively protected. (For details, please refer to the company’s "Notice on the Announcement of ShenzhenQianhai Authority on the Second Public Presentation of the Draft Revision (Exposure Draft) of Development Unit Planning of
深圳南山热电股份有限公司2021年年度报告全文
Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone [Qianwan Area] issued by the Shenzhen QianhaiAuthority" and the "Notice on Submitting Opinions on the Draft Revision (Exposure Draft) of Development Unit Planning ofQianwan Area to Shenzhen Qianhai Authority" disclosed in China Securities Journal, Securities Times, Hong Kong CommercialDaily and www.cninfo.com.cn, Notice No. : 2021-049, 2021-053).
The company will continue to follow up the progress of matters related to the land of Nanshan Power Factory, closely maintaincommunication with relevant functional departments of Shenzhen and Shenzhen Qianhai Authority. For any issues that may haveadverse effects on the company and its subsidiaries, we will timely respond, put forward opinions and appeals in accordance with thelaw, and do our best to protect the legitimate rights and interests of the listed companies and all shareholders.
3. Matters related to the adjustment of on-grid price for natural gas power generation. On October 20, 2021, the company learnedabout the "Notification on Raising the On-Grid Price of Natural Gas Power Generation in Our Province" (Document YFGJG [2021]No. 400) on the official website of Guangdong Provincial Development and Reform Commission, according to the related content,the on-grid price of the company's existing natural gas generating units would be uniformly increased by 0.05 yuan/kWh (includingVAT) on the current basis. (For details, please refer to Notice on Adjustment of On-Grid Price of Natural Gas Power Generationdisclosed by the company in China Securities Journal, Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn,Notice No. : 2021-051)
4. Matters related to the investment in Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. On November 11, 2021, thefourth interim meeting of the 9
thboard of directors of the company reviewed and approved the "Proposal on Investment in JiangsuLiaoyuan Environmental Protection Technology Co., Ltd.", and completed the purchase of partial share of Liaoyuan EnvironmentalProtection by step in November and December, 2021. (For details, please refer to the Notice on Resolution of the Fourth InterimMeeting of the 9
thBoard of Directors, the Notice on Investment in Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd.,and the Notice on the Progress of Investment in Jiangsu Liaoyuan Environmental Protection Technology Co., Ltd. disclosed by thecompany in China Securities Journal, Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn, Notice No. :
2021-054, 2021-055, 2021-056, 2021-060).
5. Matters related to the receipt of fiscal subsidy funds for gas-fired power generation enterprises from August to September, 2021. Inmiddle of December 2021, the company received the Notice of Industry and Information Technology Bureau of ShenzhenMunicipality on the Issuance of Fiscal Subsidy Funds for Gas-fired Power Generation Enterprises from August to September 2021(SGXZJ [2021]No.50), and received the total subsidy of 16.322 million yuan on December 20, 2021. (For details, please refer to theNotice on Receipt of the Notice of Industry and Information Technology Bureau of Shenzhen Municipality on the Issuance of FiscalSubsidy Funds for Gas-fired Power Generation Enterprises from August to September 2021, and the Notice on Receipt of FiscalSubsidy Funds for Gas-fired Power Generation Enterprises from August to September 2021 disclosed by the company in ChinaSecurities Journal, Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn, Notice No. : 2021-058, 2021-059).
In addition to the above matters, the company sorted out the refunds of "project technical reform benefit fund" again and contactedand communicated with relevant personnel, but there was no substantial progress during the reporting period. During the reportingperiod, the company actively promoted the investment in the new-generation information technology equity investment fund ofShenzhen Asset and the investment in Zhuhai Hengqin Zhuozhi Investment Partnership (limited partnership), but there was noprogress or change in meeting the disclosure standards during the reporting period. There was no progress or change in theGuangdong Province’s Xinjiang Aid project in which the company participated in 2013 during the reporting period.
深圳南山热电股份有限公司2021年年度报告全文
XVII. Significant event of subsidiary of the Company
□ Applicable √ Not applicable
深圳南山热电股份有限公司2021年年度报告全文
Section VII. 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% | -1,145 | -1,145 | 12,994 | 0.0022% | |||
| 1. State-owned shares | |||||||||
| 2. State-owned legal person’s shares | |||||||||
| 3. Other domestic shares | 14,139 | 0.0023% | -1,145 | -1,145 | 12,994 | 0.0022% | |||
| Including: Domestic legal person’s shares | |||||||||
| Domestic natural person’s shares | 14,139 | 0.0023% | -1,145 | -1,145 | 12,994 | 0.0022% | |||
| 4. Foreign shares | |||||||||
| Including: Foreign legal person’s shares | |||||||||
| Foreign natural person’s shares | |||||||||
| II. Unrestricted shares | 602,748,457 | 99.9977% | 1,145 | 1,145 | 602,749,602 | 99.9978% | |||
| 1. RMB Ordinary shares | 338,894,011 | 56.2235% | 1,145 | 1,145 | 338,895,156 | 56.2236% | |||
| 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2021年年度报告全文
Reasons for share changed
√Applicable □ Not applicable
Mr. Peng Bo will no longer serves as the employee representative supervisor of the Company since April 26, 2021 due to theexpiration of his office term. All the shares held by Mr. Peng will be released after six months of his departure, thereby reducing thenumber of shares subject to lock-up by 1,145 shares.
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changes
□ 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
In Share
| Shareholders | Opening shares restricted | Restricted Shares increased in the Period | Shares released in Period | Ending shares restricted | Restricted reasons | Date for released |
| Peng Bo | 1,145 | 1,145 | 0 | Mr. Peng Bo will no longer serves as the employee representative supervisor of the Company since April 26, 2021 due to the expiration of his office term. | October 27, 2021 | |
| Total | 1,145 | 1,145 | 0 | -- | -- |
II. Securities issuance and listing
1. Security offering (without preferred stock) in Reporting Period
□ Applicable √ Not applicable
深圳南山热电股份有限公司2021年年度报告全文
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 number of ordinary shareholders at end of the reporting period | 37,935 | Total number of ordinary shareholders as of the end of the month preceding the date of annual report disclosed | 37,144 | Total number of preferred shareholders whose voting rights were restored at end of the reporting period (if applicable) (see note 8) | 0 | Total number of preferred shareholders whose voting rights were restored at the end of the month prior to the date of annual report disclosed (if applicable) (see note 8) | 0 | |||||||
| Particulars about shares held above 5% by shareholders or top ten shareholders | ||||||||||||||
| Full name of Shareholders | Nature of shareholder | Shareholding percentage | Number of shares held at the end of reporting period | Changes in report period | Number of restricted shares held | Number of shares held without restriction | Shares pledged, marked or frozen | |||||||
| State of share | Amount | |||||||||||||
| HONG KONG NAM HOI (INTERNATIONAL) LTD. | Overseas legal person | 15.28% | 92,123,248 | 0 | 92,123,248 | |||||||||
| Shenzhen Guangju Industrial Co., Ltd. | State-owned legal person | 12.22% | 73,666,824 | 0 | 73,666,824 | |||||||||
| Shenzhen Energy Group Co., Ltd. | State-owned legal person | 10.80% | 65,106,130 | 0 | 65,106,130 | |||||||||
| BOCI | Overseas legal | 2.42% | 14,610,86 | -364,640 | 14,610,86 | |||||||||
深圳南山热电股份有限公司2021年年度报告全文
| SECURITIES LIMITED | person | 2 | 2 | |||||
| Zeng Ying | Domestic nature person | 1.19% | 7,159,600 | 0 | 7,159,600 | |||
| China Merchants Securities H.K. Co., Ltd. | Overseas legal person | 0.93% | 5,618,228 | -1,461,500 | 5,618,228 | |||
| Meiyi Investment Property Co., Ltd. | Domestic non state-owned legal person | 0.87% | 5,218,000 | 200 | 5,218,000 | |||
| Haitong International Securities Company Limited-Account Client | Overseas legal person | 0.65% | 3,909,357 | 0 | 3,909,357 | |||
| Guosen Securities (HK) Brokerage Limited | Overseas legal person | 0.61% | 3,651,901 | 0 | 3,651,901 | |||
| LI SHERYN ZHAN MING | Overseas natural person | 0.59% | 3,536,500 | -2,288,990 | 3,536,500 | |||
| Strategy investors or general corporation comes top 10 shareholders due to rights issue (if applicable) (see note 3) | Not applicable | |||||||
| 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. | |||||||
| Description of the above shareholders in relation to delegate/entrusted voting rights and abstention from voting rights. | N/A | |||||||
| Special note on the repurchase account among the top 10 shareholders (if applicable) (see note 10) | N/A | |||||||
| Particular about top ten shareholders with un-restrict shares held | ||||||||
| Shareholders’ name | Number of shares held without restriction at end of the reporting period | Type of shares | ||||||
| Type | Amount | |||||||
| HONG KONG NAM HOI | 92,123,248 | Overseas listed | 92,123,248 | |||||
深圳南山热电股份有限公司2021年年度报告全文
| (INTERNATIONAL) LTD. | foreign shares | ||
| 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 | 14,610,862 | Domestically listed foreign shares | 14,610,862 |
| Zeng Ying | 7,159,600 | Domestically listed foreign shares | 7,159,600 |
| China Merchants Securities H.K. Co., Ltd. | 5,618,228 | Domestically listed foreign shares | 5,618,228 |
| Meiyi Investment Property Co., Ltd. | 5,218,000 | RMB common shares | 5,218,000 |
| Haitong International Securities Company Limited-Account Client | 3,909,357 | Domestically listed foreign shares | 3,909,357 |
| Guosen Securities (HK) Brokerage Limited | 3,651,901 | Domestically listed foreign shares | 3,651,901 |
| LI SHERYN ZHAN MING | 3,536,500 | Domestically listed foreign shares | 3,536,500 |
| 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) | N/A | ||
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-backagreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have nobuy-back agreement dealing in reporting period.
深圳南山热电股份有限公司2021年年度报告全文
2. Controlling shareholders
Nature of controlling shareholders: no controlling shareholderType of controlling shareholders: nilExplanation on the Company’s absence of controlling shareholderAt present, the company does not have the controlling shareholder as defined in Item (ii) of Article 216 of the "Company Law of thePeople's Republic of China (Amended in October 2018)", or Item (iii) of Article 15.1 of the "Stock Listing Rules of Shenzhen StockExchange (Revised in 2022)".
Change of controlling shareholder in reporting period
□ Applicable √ Not applicable
The controlling shareholder of the company did not change during the reporting period.
3. Actual controller of the Company and persons acting in concert
Nature of actual controller: no actual controllerType of actual controller: nilExplanation on the Company’s absence of actual controllerAt present, there is no circumstance concerning the identification standards of the actual controller or control rights of listedcompanies as defined in Item (iii) of Article 216 of the "Company Law of the People's Republic of China (Amended in October2018)", or Article 84 of the Administrative Rules on the Acquisition of Listed Companies (Amended in March 2020), and Item (iv) ofArticle 15.1 of the "Stock Listing Rules of Shenzhen Stock Exchange (Revised in 2022)".
Whether has shareholder owns over 10% shares at ultimate control levelNo actual controllerShareholding at the ultimate control levelno actual controllerChange of actual controller in the period
□ Applicable √ Not applicable
The actual controller of the company did not change during the reporting period.Block diagram of the property rights and control relationship between the company and the actual controller
深圳南山热电股份有限公司2021年年度报告全文
Actual controller controlling the Company by entrust or other assets management
□ Applicable √ Not applicable
4.The total number of shares pledged by controlling shareholders or the first majority shareholder and itspersons acting in concert accounts for 80% of the shares held by them
□ Applicable √ Not applicable
5. 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. | Deng Zhenwu | 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 |
深圳南山热电股份有限公司2021年年度报告全文
6. Shares reduction restriction from controlling shareholder, actual controller, recombined square andother commitment entity
□ Applicable √ Not applicable
IV. The specific implementation of shares buy-back during the reporting period
Implementation progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□ Applicable √ Not applicable
深圳南山热电股份有限公司2021年年度报告全文
Section VIII. 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2021年年度报告全文
Section IX. Bonds
□ Applicable √ Not applicable
第1页
Section X. Financial Report
立信中联会计师事务所（特殊普通合伙）
LixinZhonglian CPAs (SPECIAL GENERAL PARTNERSHIP)
第2页
Content
I. Auditor’s Report 3—7II. Financial Statement
1. Consolidated Balance Sheet and Balance Sheet of Parent Company 12—15
2. Consolidated Profit Statement and Profit Statement of Parent Company 16—22
3. Consolidated Cash Flow Statement and Cash Flow Statement of Parent Company 23—29
4. Consolidated and Parent Company’s Statement of Changes in Shareholders’ Equity 30—44
5.Annotations of Financial Statement 45—139
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Auditor’s Report
Lixin Zhonglian Shen Zi[2020]No.: D-0037To Shareholders of Shenzhen Nanshan Power Co., Ltd.I. Auditor’s opinionWe have audited the financial statements of Shenzhen Nanshan Power Co., Ltd. (hereinafter the “Shen Nan Dian”),which included the consolidated and parent company’s balance sheet as of 31 December 2021, the consolidatedand parent company’s profit statement, the consolidated and parent company’s statement of cash flow and theconsolidated statement of changes in equity of the Company and parent company’s for the year of 2021, togetherwith the relevant annotations thereto.
We have the view that the attached financial statements are prepared in accordance with the Accounting Standardsfor Business Enterprises in all material aspects, which reflect fairly the consolidated financial position of theCompany and parent company’s as of 31 December 2021 and the operating results and cash flow of the Companyand parent company’s for the year of 2021.
II. Basis for audit opinionsWe conducted this audit under the requirements of the Auditing Standards of the Certified Public Accountant ofthe PRC. The section headed “Certified Public Accountant’s responsibility for audit of financial statement” in theaudit report has further clarified our responsibilities under these standards. Pursuant to the code of professionalconduct as certified public accountant in the PRC, we are independent of the Shen Nan Dian and have performedother responsibility as required by our professional ethics. We believe that the audit evidence obtained by us issufficient and adequate, which provides foundation for us to issue audit opinion.
III. Key audit itemsKey audit items refer to those which in our opinion based on our professional judgment are the most importantissues in respect of audit for the current financial statements. We issue audit opinions on these issues in their entityand provide no opinions separately for each of them.
| Key audit items | Countermeasures |
| (1) 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 (39) of V. Annotation of the items in consolidate financial statement As at 31 December 2021, the Company has fixed assets and construction in progress with carrying value of RMB 649,345,166.81 in total, accounting for 23.27% of the consolidated total assets and 73.60% of the non-current assets of the Company, which constitutes the essential part of the | 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 assessment method of the external appraiser’s qualification a |
第4页
| Company’s assets. For the year of 2021, the assets impairment loss recognized in consolidate financial statement amounted to RMB 327,479,010.92, takes 64.44% 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 | nd competency |
| (2) 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 2021, consolidate operation revenue of Shen Nan Dian amounted as RMB 757,175,743.41, a 23.15% 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 whether the operating income is recorded in appropriate accounting |
第5页
IV. Other informationThe management of Shen Nan Dian (hereinafter, the Management) is responsible for other information, whichincludes the information covered in the Annual Report of 2021 except for the financial statements and our auditreport.
Our audit opinion issued on financial statement does not cover other information, and we would not issue any formof verification conclusion for those information.
To prepare our audit on financial statement, we are required to read other information, and during the procedure, toconsider that whether other information differs materially from the financial statement or the information obtainedby us during the audit or whether 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. Inthis regard, we have nothing to report.
V. Management’s responsibility for financial statementsThe Management is responsible for preparing financial statements according to the Business Accounting Standardswhich make fair reflection, and for designing, implementing and maintaining necessary internal control system tomake sure that there is no material misstatement in the financial statements due to fraud or mistake.
When preparing the financial statements, the management is responsible for assessing the Company’s ability ofcontinuous operation, disclosing the matters relating to continuous operation and applying the assumption ofcontinuous operation, unless the management plans to liquidate the Company, terminate operation or has no otherpracticable 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 frommaterial misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordancewith auditing standards will always be found in the presence of a material misstatement. Misstatements can arisefrom fraud or error and are considered material if, individually or in the aggregate, they could reasonably beexpected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with auditing standards, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
第6页
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud 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 areappropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by management.
(4) Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based onthe audit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Company’s ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in thesefinancial statements or, if such disclosures are inadequate, we have to modify our opinion. Our conclusions arebased on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditionsmay 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 financialstatements represent the 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 orbusiness transactions of the Company, in order to issue audit opinion on the financial statement. We are responsiblefor guiding, supervising and executing the audit for the Group, and we accept full responsibility for the auditopinion.
We communicate with those charged with governance regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internal control that weidentify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence, and related safeguards (if applicable).
From the matters communicated with those charged with governance, we determine those matters that were ofmost significance in the audit of the financial statements of the current period and are therefore the key auditmatters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosureabout the matter or when, in extremely rare circumstances, we determine that a matter should not be communicatedin our report because the adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.
第7页
LIXINZHONGLIAN CPAs(SPECIAL GENERAL PARTNERSHIP)
Chinese CPA: Cao Wei(Engagement partner)
Chinese CPA: Liu Xinfa
Tianjin China 23 March 2022
第8页
1. Consolidated balance sheet
Shenzhen Nanshan Power Co., Ltd.
December 31, 2021
In RMB/CNY
| Item | December 31, 2021 | December 31, 2020 |
| Current assets: | ||
| Monetary funds | 689,604,633.59 | 764,601,272.21 |
| Settlement provisions | ||
| Capital lent | ||
| Trading financial assets | 632,874,406.39 | |
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | 73,610,161.02 | 85,293,052.88 |
| Receivable financing | ||
| Accounts paid in advance | 64,415,236.66 | 29,544,788.35 |
| Insurance receivable | ||
| Reinsurance receivables | ||
| Contract reserve of reinsurance receivable | ||
| Other account receivable | 25,841,206.66 | 31,027,754.36 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Buying back the sale of financial assets | ||
| Inventories | 88,500,991.13 | 100,245,529.06 |
| Contractual assets | 1,040,000.00 | 7,229,600.00 |
| Assets held for sale | ||
| Non-current asset due within one year | ||
| Other current assets | 331,868,661.62 | 917,288,244.54 |
| Total current assets | 1,907,755,297.07 | 1,935,230,241.40 |
| Non-current assets: | ||
| Loans and payments on behalf | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term account receivable | ||
| Long-term equity investment | 6,986,655.19 | 8,893,408.86 |
| Investment in other equity instrument | 200,615,000.00 | 81,615,000.00 |
| Other non-current financial assets | ||
| Investment real estate | 2,009,051.80 | 2,205,189.40 |
| Fixed assets | 643,256,398.30 | 925,745,208.55 |
| Construction in progress | 6,088,768.51 | 42,782,712.98 |
| Productive biological asset | ||
| Oil and gas asset | ||
| Right-of-use assets | ||
| Intangible assets | 20,465,906.86 | 21,125,610.24 |
第9页
| Expense on Research and Development | ||
| Goodwill | ||
| Long-term expenses to be apportioned | 1,716,460.30 | 1,027,508.94 |
| Deferred income tax asset | 1,109,286.38 | 2,206,049.69 |
| Other non-current asset | ||
| Total non-current asset | 882,247,527.34 | 1,085,600,688.66 |
| Total assets | 2,790,002,824.41 | 3,020,830,930.06 |
| Current liabilities: | ||
| Short-term loans | 858,444,163.25 | 675,528,858.48 |
| Loan from central bank | ||
| Capital borrowed | ||
| Trading financial liability | ||
| Derivative financial liability | ||
| Note payable | 135,025,883.27 | 30,467,345.48 |
| Account payable | 6,703,466.71 | 9,306,303.26 |
| Accounts received in advance | ||
| Contractual liability | ||
| Selling financial asset of repurchase | ||
| Absorbing deposit and interbank deposit | ||
| Security trading of agency | ||
| Security sales of agency | ||
| Wage payable | 41,533,020.96 | 69,426,903.97 |
| Taxes payable | 4,145,839.89 | 7,626,258.26 |
| Other account payable | 62,678,254.02 | 27,020,944.95 |
| 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 | 1,108,530,628.10 | 819,376,614.40 |
| 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 | 15,000,000.00 | 19,923,508.28 |
第10页
| Deferred income | 88,079,970.09 | 93,780,657.93 |
| Deferred income tax liabilities | ||
| Other non-current liabilities | 50,310.78 | 7,627.86 |
| Total non-current liabilities | 103,130,280.87 | 113,711,794.07 |
| Total liabilities | 1,211,660,908.97 | 933,088,408.47 |
| 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 | 319,351,219.81 | 758,799,931.94 |
| Total owner’ s equity attributable to parent company | 1,615,293,135.51 | 2,054,741,847.64 |
| Minority interests | -36,951,220.07 | 33,000,673.95 |
| Total owner’ s equity | 1,578,341,915.44 | 2,087,742,521.59 |
| Total liabilities and owner’ s equity | 2,790,002,824.41 | 3,020,830,930.06 |
Legal Representative: Li XinweiPerson in charge of accounting works: Chen YuhuiPerson in charge of accounting institute: Shang Ying
2. Balance Sheet of Parent Company
In RMB/CNY
| Item | December 31, 2021 | December 31, 2020 |
| Current assets: | ||
| Monetary funds | 592,751,213.88 | 656,244,294.18 |
| Trading financial assets | 622,874,406.39 | |
| Derivative financial assets | ||
| Note receivable | ||
| Account receivable | 35,966,056.15 | 24,673,115.32 |
| Receivable financing | ||
| Accounts paid in advance | 60,381,018.05 | 25,560,315.87 |
| Other account receivable | 618,436,063.60 | 598,044,417.89 |
| Including: Interest receivable | ||
| Dividend receivable | ||
| Inventories | 79,904,055.96 | 91,867,492.38 |
| Contractual assets |
第11页
| Assets held for sale | ||
| Non-current assets maturing within one year | ||
| Other current assets | 321,673,866.15 | 910,645,154.56 |
| Total current assets | 2,331,986,680.18 | 2,307,034,790.20 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investment | ||
| Long-term receivables | ||
| Long-term equity investments | 287,301,269.81 | 250,191,165.00 |
| Investment in other equity instrument | 60,615,000.00 | 60,615,000.00 |
| Other non-current financial assets | ||
| Investment real estate | ||
| Fixed assets | 314,308,562.41 | 312,649,354.95 |
| Construction in progress | 1,399,062.85 | 1,073,964.84 |
| Productive biological assets | ||
| Oil and natural gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 247,959.31 | 332,241.43 |
| Research and development costs | ||
| Goodwill | ||
| Long-term deferred expenses | 1,513,521.01 | 734,374.41 |
| Deferred income tax assets | ||
| Other non-current assets | ||
| Total non-current assets | 665,385,375.39 | 625,596,100.63 |
| Total assets | 2,997,372,055.57 | 2,932,630,890.83 |
| Current liabilities | ||
| Short-term borrowings | 458,444,163.25 | 675,528,858.48 |
| Trading financial liability | ||
| Derivative financial liability | ||
| Notes payable | 535,025,883.27 | 30,467,345.48 |
| Account payable | 1,280,357.11 | 998,036.56 |
| Accounts received in advance | ||
| Contractual liability | ||
| Wage payable | 29,251,444.37 | 53,405,473.63 |
| Taxes payable | 562,233.61 | 1,752,749.94 |
| Other accounts payable | 132,397,663.39 | 204,960,979.45 |
| Including: Interest payable | ||
| Dividend payable | ||
| Liability held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | ||
| Total current liabilities | 1,156,961,745.00 | 967,113,443.54 |
| Non-current liabilities: | ||
| Long-term loans |
第12页
| Bonds payable | ||
| Including: preferred stock | ||
| Perpetual capital securities | ||
| Lease liability | ||
| Long-term account payable | ||
| Long term employee compensation payable | ||
| Accrual liabilities | ||
| Deferred income | 52,036,600.90 | 54,805,440.92 |
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 52,036,600.90 | 54,805,440.92 |
| Total liabilities | 1,208,998,345.90 | 1,021,918,884.46 |
| 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 | 562,739,676.37 | 685,077,973.07 |
| Total owner’s equity | 1,788,373,709.67 | 1,910,712,006.37 |
| Total liabilities and owner’s equity | 2,997,372,055.57 | 2,932,630,890.83 |
3. Consolidated Profit Statement
In RMB/CNY
| Item | 2021 | 2020 |
| I. Total operating income | 757,175,743.41 | 985,253,831.58 |
| Including: Operating income | 757,175,743.41 | 985,253,831.58 |
| Interest income | ||
| Insurance gained | ||
| Commission charge and commission income | ||
| II. Total operating cost | 996,903,846.83 | 928,092,033.49 |
| Including: Operating cost | 850,260,659.40 | 794,523,810.39 |
| Interest expense | ||
| Commission charge and commission expense | ||
| Cash surrender value | ||
| Net amount of expense of compensation | ||
| Net amount of withdrawal of insurance contract reserve |
第13页
| Bonus expense of guarantee slip | ||
| Reinsurance expense | ||
| Tax and extras | 6,281,148.30 | 8,545,858.05 |
| Sales expense | 928,661.79 | 4,979,915.34 |
| Administrative expense | 103,286,926.69 | 111,618,225.09 |
| R&D expense | 20,933,712.98 | 8,490,882.58 |
| Financial expense | 15,212,737.67 | -66,657.96 |
| Including: Interest expenses | 30,629,953.77 | 32,014,803.26 |
| Interest income | 15,728,363.74 | 32,660,554.45 |
| Add: other income | 7,074,336.60 | 22,711,318.05 |
| Investment income (Loss is listed with “-”) | 45,981,085.44 | 27,809,087.38 |
| Including: Investment income on affiliated company and joint venture | -1,906,753.67 | -5,725,794.17 |
| The termination of income recognition for financial assets measured by amortized cost(Loss is listed with “-”) | ||
| Exchange income (Loss is listed with “-”) | ||
| Net exposure hedging income (Loss is listed with “-”) | ||
| Income from change of fair value (Loss is listed with “-”) | ||
| Loss of credit impairment (Loss is listed with “-”) | ||
| Losses of devaluation of asset (Loss is listed with “-”) | -327,479,010.92 | -43,718,679.38 |
| Income from assets disposal (Loss is listed with “-”) | 974,699.74 | -1,109,128.91 |
| III. Operating profit (Loss is listed with “-”) | -513,176,992.56 | 62,854,395.23 |
| Add: Non-operating income | 5,261,868.99 | 6,585,316.78 |
| Less: Non-operating expense | 248,216.00 | 153,719.62 |
| IV. Total profit (Loss is listed with “-”) | -508,163,339.57 | 69,285,992.39 |
| Less: Income tax expense | 1,237,266.58 | 1,361,203.90 |
| V. Net profit (Net loss is listed with “-”) | -509,400,606.15 | 67,924,788.49 |
| (i) Classify by business continuity | ||
| 1.continuous operating net profit (net loss listed with ‘-”) | ||
| 2.termination of net profit (net loss listed with ‘-”) | ||
| (ii) Classify by ownership | ||
| 1.Net profit attributable to owner’s of parent company | -439,448,712.13 | 64,024,291.32 |
| 2.Minority shareholders’ gains and losses | -69,951,894.02 | 3,900,497.17 |
| VI. Net after-tax of other comprehensive income | ||
| Net after-tax of other comprehensive income attributable to owners of parent company |
第14页
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument | ||
| 4.Fair value change of enterprise's credit risk | ||
| 5. Other | ||
| (ii) Other comprehensive income items which will be reclassified subsequently to profit or loss | ||
| 1.Other comprehensive income under equity method that can transfer to gain/loss | ||
| 2.Change of fair value of other debt investment | ||
| 3.Amount of financial assets re-classify to other comprehensive income | ||
| 4.Credit impairment provision for other debt investment | ||
| 5.Cash flow hedging reserve | ||
| 6.Translation differences arising on translation of foreign currency financial statements | ||
| 7.Other | ||
| Net after-tax of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | -509,400,606.15 | 67,924,788.49 |
| Total comprehensive income attributable to owners of parent Company | -439,448,712.13 | 64,024,291.32 |
| Total comprehensive income attributable to minority shareholders | -69,951,894.02 | 3,900,497.17 |
| VIII. Earnings per share: | ||
| (i) Basic earnings per share | -0.7291 | 0.1062 |
| (ii) Diluted earnings per share | -0.7291 | 0.1062 |
Legal Representative: Li XinweiPerson in charge of accounting works: Chen YuhuiPerson in charge of accounting institute: Shang Ying
4. Profit Statement of Parent Company
In RMB/CNY
| Item | 2021 | 2020 |
第15页
| I. Operating income | 393,181,803.59 | 375,980,848.55 |
| Less: Operating cost | 409,560,912.13 | 350,765,440.51 |
| Taxes and surcharge | 2,649,303.27 | 1,869,505.05 |
| Sales expenses | ||
| Administration expenses | 37,736,990.21 | 61,463,793.70 |
| R&D expenses | 13,090,279.46 | |
| Financial expenses | -7,412,079.88 | -33,786,954.71 |
| Including: interest expenses | 32,363,377.89 | 28,907,352.91 |
| Interest income | 39,843,733.49 | 62,595,082.66 |
| Add: other income | 3,610,167.05 | 14,052,451.52 |
| Investment income (Loss is listed with “-”) | 47,664,277.47 | -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 “-”) | -111,950,707.32 | -7,399,234.51 |
| Income on disposal of assets (Loss is listed with “-”) | 944,667.70 | -1,085,739.91 |
| II. Operating profit (Loss is listed with “-”) | -122,175,196.70 | -13,195,858.90 |
| Add: Non-operating income | ||
| Less: Non-operating expense | 163,100.00 | 5,290.00 |
| III. Total Profit (Loss is listed with “-”) | -122,338,296.70 | -13,201,148.90 |
| Less: Income tax | ||
| IV. Net profit (Net loss is listed with “-”) | -122,338,296.70 | -13,201,148.90 |
| (i) continuous operating net profit (net loss listed with ‘-”) | ||
| (ii) termination of net profit (net loss listed with ‘-”) | ||
| V. Net after-tax of other comprehensive income | ||
| (I) Other comprehensive income items which will not be reclassified subsequently to profit of loss | ||
| 1.Changes of the defined benefit plans that re-measured | ||
| 2.Other comprehensive income under equity method that cannot be transfer to gain/loss | ||
| 3.Change of fair value of investment in other equity instrument |
第16页
| 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 | -122,338,296.70 | -13,201,148.90 |
| VII. Earnings per share: | ||
| (i) Basic earnings per share | ||
| (ii) Diluted earnings per share |
第17页
5. Consolidated Cash Flow Statement
In RMB/CNY
| Item | 2021 | 2020 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 864,329,995.09 | 1,108,562,507.27 |
| 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 | 214,166.34 | 1,601,602.02 |
| Other cash received concerning operating activities | 51,426,395.71 | 45,950,570.01 |
| Subtotal of cash inflow arising from operating activities | 915,970,557.14 | 1,156,114,679.30 |
| Cash paid for purchasing commodities and receiving labor service | 721,294,436.17 | 631,546,077.17 |
| 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 | 150,735,758.93 | 144,256,547.88 |
| Taxes paid | 26,215,327.00 | 61,168,879.09 |
| Other cash paid concerning operating activities | 56,983,337.11 | 58,417,766.14 |
| Subtotal of cash outflow arising from operating activities | 955,228,859.21 | 895,389,270.28 |
| Net cash flows arising from operating | -39,258,302.07 | 260,725,409.02 |
第18页
| activities | ||
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 25,656,458.26 | |
| Cash received from investment income | 57,648,950.11 | |
| Net cash received from disposal of fixed, intangible and other long-term assets | 1,807,866.50 | 540.00 |
| Net cash received from disposal of subsidiaries and other units | 32,412,836.98 | |
| Other cash received concerning investing activities | 7,907,964.80 | |
| Subtotal of cash inflow from investing activities | 85,113,274.87 | 40,321,341.78 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 44,862,987.99 | 18,670,897.05 |
| Cash paid for investment | 201,873,680.00 | 510,190,094.90 |
| 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 | 246,736,667.99 | 528,860,991.95 |
| Net cash flows arising from investing activities | -161,623,393.12 | -488,539,650.17 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | 42,483.00 | 85,632.79 |
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | ||
| Cash received from loans | 1,061,031,840.80 | 1,148,033,285.00 |
| Other cash received concerning financing activities | 170,000,000.00 | |
| Subtotal of cash inflow from financing activities | 1,061,074,323.80 | 1,318,118,917.79 |
| Cash paid for settling debts | 909,092,726.75 | 1,056,000,000.00 |
| Cash paid for dividend and profit distributing or interest paying | 25,970,397.45 | 39,905,513.17 |
| 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 | 935,063,124.20 | 1,096,793,475.57 |
| Net cash flows arising from financing activities | 126,011,199.60 | 221,325,442.22 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -126,143.03 | -399,929.82 |
第19页
| V. Net increase of cash and cash equivalents | -74,996,638.62 | -6,888,728.75 |
| Add: Balance of cash and cash equivalents at the period -begin | 764,601,272.21 | 771,490,000.96 |
| VI. Balance of cash and cash equivalents at the period -end | 689,604,633.59 | 764,601,272.21 |
6. Cash Flow Statement of Parent Company
In RMB/CNY
| Item | 2021 | 2020 |
| I. Cash flows arising from operating activities: | ||
| Cash received from selling commodities and providing labor services | 649,301,148.13 | 533,744,518.18 |
| Write-back of tax received | 181,606.65 | 312,882.87 |
| Other cash received concerning operating activities | 274,118,435.89 | 624,995,145.52 |
| Subtotal of cash inflow arising from operating activities | 923,601,190.67 | 1,159,052,546.57 |
| Cash paid for purchasing commodities and receiving labor service | 358,851,605.45 | 283,488,305.67 |
| Cash paid to/for staff and workers | 109,824,916.40 | 95,218,999.45 |
| Taxes paid | 2,921,107.01 | 2,899,621.27 |
| Other cash paid concerning operating activities | 392,790,366.22 | 357,365,024.96 |
| Subtotal of cash outflow arising from operating activities | 864,387,995.08 | 738,971,951.35 |
| Net cash flows arising from operating activities | 59,213,195.59 | 420,080,595.22 |
| II. Cash flows arising from investing activities: | ||
| Cash received from recovering investment | 25,656,458.26 | |
| Cash received from investment income | 57,048,950.11 | |
| Net cash received from disposal of fixed, intangible and other long-term assets | 1,751,974.50 | |
| Net cash received from disposal of subsidiaries and other units | 59,990,000.00 | |
| Other cash received concerning investing activities | 6,763,164.80 | |
| Subtotal of cash inflow from investing activities | 84,457,382.87 | 66,753,164.80 |
| Cash paid for purchasing fixed, intangible and other long-term assets | 41,299,271.44 | 9,391,182.84 |
| Cash paid for investment | 72,873,680.00 | 489,190,094.90 |
| Net cash received from subsidiaries and other units obtained | 118,957,517.00 | 21,272,400.00 |
| Other cash paid concerning investing activities |
第20页
| Subtotal of cash outflow from investing activities | 233,130,468.44 | 519,853,677.74 |
| Net cash flows arising from investing activities | -148,673,085.57 | -453,100,512.94 |
| III. Cash flows arising from financing activities | ||
| Cash received from absorbing investment | ||
| Cash received from loans | 961,031,840.80 | 848,033,285.00 |
| Other cash received concerning financing activities | ||
| Subtotal of cash inflow from financing activities | 961,031,840.80 | 848,033,285.00 |
| Cash paid for settling debts | 909,092,726.75 | 756,000,000.00 |
| Cash paid for dividend and profit distributing or interest paying | 25,970,397.45 | 34,827,027.04 |
| Other cash paid concerning financing activities | 887,962.40 | |
| Subtotal of cash outflow from financing activities | 935,063,124.20 | 791,714,989.44 |
| Net cash flows arising from financing activities | 25,968,716.60 | 56,318,295.56 |
| IV. Influence on cash and cash equivalents due to fluctuation in exchange rate | -1,906.92 | -2,789.77 |
| V. Net increase of cash and cash equivalents | -63,493,080.30 | 23,295,588.07 |
| Add: Balance of cash and cash equivalents at the period -begin | 656,244,294.18 | 632,948,706.11 |
| VI. Balance of cash and cash equivalents at the period -end | 592,751,213.88 | 656,244,294.18 |
第21页
7. Statement of Changes in Owners’ Equity (Consolidated)
Current Period
In RMB/CNY
| Item | 2021 | ||||||||||||||
| 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 | 758,799,931.94 | 2,054,741,847.64 | 33,000,673.95 | 2,087,742,521.59 | |||||||
| Add: Changes of accounting policy | |||||||||||||||
| Error correction of the last period | |||||||||||||||
| Enterprise combine under the same control | |||||||||||||||
| Other | |||||||||||||||
| II. Balance at year-begin | 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 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | -439,448,712.13 | -439,448,712.13 | -69,951,894.02 | -509,400,606.15 | |||||||||||
| (i) Total comprehensive income | -439,448,712.13 | -439,448,712.13 | -69,951,894.02 | -509,400,606.15 | |||||||||||
| (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 | |||||||||||||||
第22页
| (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 | 319,351,219.81 | 1,615,293,135.51 | -36,951,220.07 | 1,578,341,915.44 |
Last Period
In RMB/CNY
| Item | 2020 | ||||||||||||
| Owners’ equity attributable to the parent Company | Minority | Total owners’ | |||||||||||
| Share | Other | Capital | Less: | Other | Reaso | Surplu | Provisi | Retain | Other | Subtot | |||
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| capital | equity instrument | reserve | Inventory shares | comprehensive income | nable reserve | s reserve | on of general risk | ed profit | al | interests | equity | ||||
| 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 year-begin | 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 | -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 | |||||||||||||||
第24页
| 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 |
8. Statement of Changes in Owners’ Equity (Parent Company)
Current Period
In RMB/CNY
| Item | 2021 | |||||||||||
| 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 securiti | Other | ||||||||||
第25页
| es | ||||||||||||
| I. Balance at the end of the last year | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 685,077,973.07 | 1,910,712,006.37 | |||||||
| Add: Changes of accounting policy | ||||||||||||
| Error correction of the last period | ||||||||||||
| Other | ||||||||||||
| II. Balance at year-begin | 602,762,596.00 | 289,963,039.70 | 332,908,397.60 | 685,077,973.07 | 1,910,712,006.37 | |||||||
| III. Increase/ Decrease in this year (Decrease is listed with “-”) | -122,338,296.70 | -122,338,296.70 | ||||||||||
| (i) Total comprehensive income | -122,338,296.70 | -122,338,296.70 | ||||||||||
| (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 |
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| 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 | 562,739,676.37 | 1,788,373,709.67 |
Last period
In RMB/CNY
| 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 year-begin | 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 | ||||||||||||
第27页
| 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 |
第28页
| 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 |
Shenzhen Nanshan Power Co., Ltd.Annotations of financial statement 2021
(Unless otherwise stated, the amount of unit is RMB/CNY)
I. Company Profile
(1) Profile
Shenzhen Nanshan Power Co., Ltd (hereinafter, “Company” or “the Company” ) was reorganized to be ajoint-stock enterprise from a foreign investment enterprise on 25 November 1993, upon the approval of GeneralOffice of Shenzhen Municipal Government with Document Shen Fu Ban Fu [1993] No.897.
After approved by Document Shen Zhu Ban Fu [1993] No.179 issued by Shenzhen Securities Regulatory Office,on 3 January 1994, the Company offered 40,000,000 RMB common shares and 37,000,000 domestically listedforeign shares in and out of China. And the RMB common shares (A-stock) and domestically listed foreign listedshares (B-stock) were listed in Shenzhen Stock Exchange successively on July 1, 1994 and Nov. 28, 1994.
Headquarter of the Company located on 16/F, 17/F, Han Tang Building, OCT, Nanshan District, Shenzhen City,Guangdong Province, P.R.C.
The financial statement has approved for report by the Board on 23 March 2022.
(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 |
第29页
| Subsidiary | Share holding ratio % | Note |
| 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)(“Zhuhai Hengqin ”) | 99.96 |
Scope of the consolidate financial statement and its changes found more in the VI. Change of Consolidate Scopeand VII. Equity in other entity carry in the Note
II. Preparation basis of Financial statement
(1) Preparation basis
The Company’s financial statements have been prepared based on the going concern and the actual transactionsand events. In accordance with the Accounting Standards for Business Enterprises- Basic Norms and everyspecific accounting rules, the application guidelines of the Accounting Standards for Business Enterprises,interpretations and other related rules of the Accounting Standards for Business Enterprises (hereinafter referred toas “ASBEs”), and the disclosure requirements of the “Regulation on the Preparation of Information Disclosures ofCompanies Issuing Public Shares, No. 15- General Requirements for Financial Reports” of China SecuritiesRegulatory Commission.
(2)Going concern
The Company is capable of going concern for 12 months from the end of the reporting period, andthere are no major issues affecting the ability to go concern.
III. Major Accounting Policies and EstimationThe Company together with its subsidiaries is mainly engaged in businesses as production of power and heat,power plant construction, fuel trading, engineering consulting and sludge drying. According to the actualproduction and operation characteristics, the Company and its subsidiaries establish certain specific accountingpolicies and accounting estimates in respect of their transactions and matters such as sales revenue recognitionpursuant to relevant business accounting principles. Details are set out in (24) Revenue under Note III.
(1) Statement on observation of Accounting Standard for Business EnterprisesThe financial statement of the Company are comply with the requirements of ASBE issued byMinistry of Finance, and present a true and complete view of the consolidated and parentcompany’s financial status as of December 31, 2021 and the consolidated and parent company’soperation results and cash flow for the year of 2021.
(2) Accounting period
A fiscal year from January 1 to December 31 of the Gregorian calendar.
第30页
(3)Operating cycle
The Company takes 12 months of a year as the normal operating cycle, and takes the operatingcycle as the standard for the liquidity division of assets and liabilities.
((4)Book-keeping standard currency
Book-keeping standard of the Company is RMB(CNY)
(5)Accounting treatment on enterprise combine under the same control and under thedifferent control
Enterprise combination under the same control: The assets and liabilities obtained by the combining party inenterprise combination are measured at the book value of the consolidated financial statements of the ultimatecontrolling party in accordance with the assets and liabilities of the combined party on the date of combination.The difference between the carrying amount of the net assets obtained and the carrying amount of theconsideration paid for the combination (or the aggregate nominal value of shares issued as consideration) ischarged 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 assumedon the date of purchase as a consideration of enterprise combination are measured at fair value, and the differencebetween the fair value and its book value is included in the current profit and loss. Where the cost of a businesscombination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the differenceis recognized as goodwill; where the cost of a business combination less than the acquirer’s interest in the fairvalue of the acquiree’s identifiable net assets, reckoned into current gains/losses after double-check.
The directly relevant fees incurred in the merger of enterprises shall be reckon into the currentgains/losses when incurred; the transaction costs of issuing equity securities or debt security forthe purpose of enterprise combination should be reckon into the initial recognition of equitysecurity 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 theCompany and all subsidiaries.
2. Consolidate procedures
Based on the financial statements of itself and its subsidiaries, the Company compiles the
第31页
consolidated financial statements in line with other relevant information. The Company compilesconsolidated financial statements, considers the entire enterprise group as an accounting entity,and reflects the overall financial position, operating results and cash flow of the enterprise groupin accordance with the relevant accounting standards' recognition, measurement and presentationrequirements and in accordance with unified accounting policies.
The accounting policies and accounting periods adopted by all subsidiaries included in theconsolidation scope of the consolidated financial statements are consistent with the Company. Ifthe accounting policies and accounting periods adopted by the subsidiaries are inconsistent withthe Company, when preparing the consolidated financial statements, make necessary adjustmentsaccording to the accounting policies and accounting periods of the Company. For a subsidiaryacquired through a business combination not under the same control, its financial statements areadjusted 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 financialstatements are adjusted based on the book value of its assets and liabilities (including the goodwillformed by the ultimate controlling party's acquisition of the subsidiary) in the ultimate controllingparty's financial statements.
The subsidiary's owner's equity, current net profit or loss and the share of current comprehensiveincome belonging to minority shareholders are separately listed under the owner's equity item inthe consolidated balance sheet, under the net profit item in the consolidated income statement andunder the total comprehensive income item. If the current loss shared by the minority shareholdersof a subsidiary exceeds the minority shareholder' share in the owner's equity of the subsidiary atthe beginning of the period, the balance shall offset against the minority shareholders' equity.
(1) Increase subsidiaries or businesses
During the reporting period, if a subsidiary or business is added due to a business combinationunder the same control, adjust the opening balance of the consolidated balance sheet; incorporatethe income, expenses, and profits of the subsidiary or business combination from the beginning ofthe current period to the end of the reporting period into the consolidated income statement;incorporate the cash flows of the subsidiary or business combination from the beginning of thecurrent period to the end of the reporting period into the consolidated cash flow statement, andadjust the relevant items of the comparative statement as if the consolidated reporting entity hadbeen 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 additionalinvestment, all parties participating in the combination are deemed to have adjusted in theircurrent state when the ultimate controlling party commenced control. The equity investment held
第32页
before the control of the combined party is obtained, the relevant profit or loss and othercomprehensive income that have been confirmed between the date of acquisition of the originalequity and the date on which the combining party and the combined party are under the samecontrol 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 comparativestatements.
During the reporting period, if a subsidiary or business is added due to a business combination notunder the same control, the opening balance of the consolidated balance sheet period will not beadjusted; the income, expenses, and profits of the subsidiary or business from the acquisition dateto the end of the reporting period will be included in the consolidated income statement; the cashflows of the subsidiary or business from the acquisition date to the end of the reporting period areincluded in the consolidated statement of cash flow.
For reasons such as additional investments that can control an investee not under the same control, the Companyremeasures the equity of the acquiree held before the purchase date according to the fair value of the equity on thepurchase date, and the balance between the fair value and its book value is included in the current investmentincome. If the equity of the acquiree held before the purchase date involves other comprehensive income under theequity method and other changes in owner's equity other than net profit or loss, other comprehensive income andprofit distribution, other comprehensive income and other changes in owner's equity related to it shall be convertedinto the investment income of the current period on the date of purchase, except for other comprehensive incomearising from the re-measurement of the net liabilities or changes in net assets of the defined benefit plan of theinvestee.
(2)Disposal of subsidiaries or businesses
①General treatment method
During the reporting period, when the Company disposes of a subsidiary or business, the income,expenses and profits of the subsidiary or business from the beginning of the period to the disposaldate are included in the consolidated income statement, while the cash flow of the subsidiary orthe business from the beginning of the period to the disposal date is included in the consolidatedstatement of cash flow.
For control rights loss in original subsidiary for partial equity investment disposal or other reasons, the remainedequity should re-measured based on the fair value at date of control losses. The difference between the net assets oforiginal subsidiary share by proportion held that sustainable calculated since purchased date (or combination date)and sum of consideration obtained by equity disposal and fair value of remain equity, reckoned into the currentinvestment income of control rights loss. Other comprehensive income related to the original subsidiary's equityinvestment or other changes in owner's equity other than net profit and loss, other comprehensive income andprofit distribution will be converted to current investment income when the control is lost, except for othercomprehensive income arising from the remeasurement of the net liabilities or changes in net assets of the defined
第33页
benefit plan of the investee.
If other investors’ capital increases in the subsidiary results in a decline in the Company'sshareholding ratio and thus loss of control power, accounting shall be conducted in accordancewith the above principles.
② Dispose subsidiary step-by-step
When the Company disposes of equity investment in a subsidiary by a stage-up approach withseveral transactions until the control over the subsidiary is lost, these several transactions relatedto the disposal of equity investment in a subsidiary are accounted for as transactions in a basketwhen the terms, conditions and economic impacts of these several transactions meet the followingone or more conditions:
i. these transactions are entered into at the same time or after considering their impacts on eachother;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 whenconsidered with other transactions.
When several transactions related to the disposal of equity investment in a subsidiary until the control over thesubsidiary is lost fall within transactions in a basket, each of which is accounted for as disposal of a subsidiarywith a transaction until the control over a subsidiary is lost; however, the different between the amount of disposalprior to the loss of control and the net assets of a subsidiary attributable to the disposal investment shall berecognized as other comprehensive income in consolidated financial statements and transferred to profit or loss forthe 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 controldo not belong to the package transaction, before the loss of control, the relevant policies for partialdisposal of the equity investment in the subsidiary shall be accounted for without losing control.When the control right is lost, the accounting treatment shall be carried out according to thegeneral treatment method for disposing of the subsidiary.
(3) Purchase of minority shares in subsidiaries
The difference between the Company's newly acquired long-term equity investment due to thepurchase of minority shares and the net assets share calculated continuously by the subsidiaryfrom the date of purchase (or merger date) in accordance with the calculation of the newlyincreased shareholding ratio, adjust the equity premium in the capital reserve in the consolidatedbalance sheet, if the equity premium in the capital reserve is insufficient to offset, adjust theretained earnings.
第34页
(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 asubsidiary without losing control and the net assets share calculated continuously by the subsidiary from the dateof purchase or merger corresponding to the disposal of the long-term equity investment, adjust the equity premiumin the capital reserve in the consolidated balance sheet, if the equity premium in the capital reserve is insufficientto 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 assetsrelated to the arrangement and bears the liabilities related to the arrangement.The company confirms the following items related to the share of interests in its joint operations, and inaccordance with the provisions of the relevant accounting standards for accounting treatment:
(1) Recognize the assets held solely by the Company, and recognize assets held jointly by the Company inappropriation to the share of the Company;
(2) Recognize the obligations assumed solely by the Company, and recognize obligations assumed jointly by theCompany in appropriation to the share of the Company;
(3) Recognize revenue from disposal of the share of joint operations of the Company;
(4) Recognize fees solely occurred by Company;
(5) Recognize fees from joint operations in appropriation to the share of the Company.
Accounting policy for the joint venture investment found more in (13) Long-term equityinvestment under Note III.
(8) Determination criteria of cash and cash equivalent
While preparing the cash flow statement, the stock cash and savings available for payment at anytime are recognized as cash. The investments meets the follow four conditions at the same time arerecognized as cash equivalent, that is short-term (normally fall due within three months from thedate of acquisition) and highly liquid investments held the Group which are readily convertibleinto known amounts of cash and which are subject to insignificant risk of value change.
(9)Foreign currency business and foreign currency statement translation
1.Foreign currency business
Foreign currency business uses the spot exchange rate on the transaction date as the conversionrate to convert foreign currency amounts into RMB for accounting.
The balance of foreign currency monetary items at the balance sheet date is converted at the spot
第35页
exchange rate on the balance sheet date, the resulting exchange difference is included in currentprofit and loss, except that the exchange difference arising from foreign currency specialborrowings related to the acquisition or construction of assets eligible for capitalization is disposedwith 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 balancesheet date; the owners' equity items are converted at the spot exchange rate at the time ofoccurrence, except for the "undistributed profit" item. The income and expense items in theincome statement are converted at the spot exchange rate on the transaction date.
When disposing of an overseas operation, the translation difference in the foreign currency financial statementsrelated to the overseas operation is transferred from the owner's equity item to the disposal of current profit or loss.
(10) Financial instrument
Financial instrument consist of financial assets, financial liability and equity instrument.
1.Classification of financial instrument
Based on the Company's business model for managing financial assets and the contractual cashflow characteristics of financial assets, financial assets are classified as the financial assetsmeasured at amortized cost, the financial assets (debt instruments) measured at fair value andwhose changes are included in other comprehensive income and the financial assets measured atfair value and whose changes are included in current profit and loss at initial recognition.
Business model to collect the contractual cash flow, and the contractual cash flow is only thepayment of the principal and the interest based on the outstanding principal amount, is classifiedas a financial asset measured at amortized cost; business model to collect the contractual cash flowand sell the financial asset, and the contractual cash flow is only the payment of principal and theinterest based on the outstanding principal amount, is classified as a financial asset measured atfair value and whose changes are included in other comprehensive income (debt instruments);other financial assets other than these are classified as financial assets measured at fair value andwhose changes are included in the current profit and loss.
For a non-tradable equity instrument investment, the Company determines at the time of initialrecognition whether to designate it as a financial asset (equity instrument) measured at fair valueand whose changes are included in other comprehensive income.
At the time of initial recognition, financial liabilities are classified into financial liabilities that are measured at fairvalue and whose changes are included in the current profit and loss and financial liabilities that are measured at
第36页
amortized cost.
A financial liability that meets one of the following conditions can be designated as a financialliability measured at fair value and whose changes are included in current profit and loss at initialmeasurement:
1) This designation can eliminate or significantly reduce accounting mismatches.
2) In accordance with the corporate risk management or investment strategy stated in formal written documents,make management and performance evaluation to financial liability portfolios or financial assets and financialliability portfolios based on fair value, and report to the key management personnel within the enterprise based onthis.
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: (Specificdescription of the designated 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, otherreceivables, long-term receivables, debt investment, etc., which are initially measured at fair value,and related transaction costs are included in the initially recognized amount; accounts receivableexcluding significant financing components and accounts receivable with financing componentsnot exceeding one year that the Company decides not to consider are initially measured at thecontract transaction price.
The interest calculated by using the effective interest method during the holding period is includedin the current profit and loss.
When taking back or disposing, the difference between the cost obtained and the book value of the financial assetis included in the current profit and loss.
(2) Financial assets (debt instrument) measured at fair value and whose changes are reckoned intoother comprehensive incomeThe financial assets (debt instrument) measured at fair value and whose changes are reckoned intoother comprehensive income consist of receivable financing and other debt investment andinitially measured at fair value, relevant transaction fees are included in initial recognized amount.The financial assets are subsequently measured at fair value, and the fair value changes arereckoned into other comprehensive income except for the interest, impairment loss or gain andexchange gain or loss calculated by actual interest rate method.Upon termination of the recognition, the accumulated gains or losses previously included in other
第37页
comprehensive income shall be transferred out and reckoned into current profit and loss.
(3) Financial assets (equity instrument) measured at fair value and whose changes are reckonedinto other comprehensive incomeThe financial assets (equity instrument) measured at fair value and whose changes are reckonedinto other comprehensive income consist of the equity instrument investment etc. and initiallymeasured at fair value, relevant transaction fees are included in initial recognized amount. Thefinancial assets are subsequently measured at fair value, and the fair value changes are reckonedinto other comprehensive income. The dividend obtained should reckoned into currentgains/losses.Upon termination of the recognition, the accumulated gains or losses previously included in othercomprehensive income shall be transferred out and reckoned into retained earnings.
(4) Financial assets measured at fair value and whose changes are reckoned into currentgains/lossesThe financial assets measured at fair value and whose changes are reckoned into currentgains/losses consist of trading financial assets, derivative financial assets and other non-currentfinancial assets etc. and initially measured at fair value, relevant transaction fees are included incurrent gains/losses. The financial assets are subsequently measured at fair value, and the fairvalue changes are reckoned into current gains/losses.
(5) Financial liability measured at fair value and whose changes are reckoned into currentgains/losses
The financial liability measured at fair value and whose changes are reckoned into currentgains/losses consist of trading financial liability and derivative financial liability etc. and initiallymeasured at fair value, relevant transaction fees are included in current gains/losses. The financialliabilities are subsequently measured at fair value, and the fair value changes are reckoned intocurrent gains/losses.Upon termination of the recognition, the difference between its book value and the considerationpaid is included in the current gains/losses.
(6) Financial liability measured at amortized cost
The financial liabilities measured at amortized cost consist of short-term loans, note payable,account payable, other account payable, long-term loans, bond payable and long-term accountpayable, and initially measured at fair value, relevant transaction fees are included in initialrecognized amount.
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The interests calculated by effective interest rate method during the holding period is reckonedinto current gains/losses.
Upon termination of the recognition, the difference between consideration paid and the book valueof financial liability is reckoned into current gains/losses.
3. Recognition basis and measurement method for transfer of financial assetsIn the event of financial asset transfer, the Company shall assess the degree of risk and reward of retaining theownership of the financial asset and deal with the following circumstances respectively:
(1) Where almost all risks and rewards on the ownership of a financial asset are transferred, the recognition of thefinancial asset shall be terminated, and the rights and obligations generated or retained in the transfer shall beseparately recognized as assets or liabilities.
(2) Where almost all risks and rewards on the ownership of a financial asset are retained, the financial asset shallcontinue to be recognized.
(3) Where virtually all risks and rewards on the ownership of a financial asset are neither transferred nor retained(that is, other conditions except for (1) and (2) of this Article), depending on whether it retains control of thefinancial asset, deal with the following circumstances respectively:
1) Where the control of such financial asset is not retained, the recognition of the financial asset is terminated, andthe rights and obligations generated or reserved in the transfer are identified as an asset or liability.
2) Where the control of such financial asset is retained, the relevant financial assets shall continue to be recognizedaccording to the extent of its continued involvement in the transferred financial assets, and the relevant liabilitiesshall be recognized accordingly. The extent of continued involvement in the transferred financial assets refers tothe extent of the risk or reward of changes in the value of the transferred financial asset assumed by the Company.
When judging whether the financial asset transfer meets the termination of recognition of the said financial asset,adopt the principle of substance over form. The company divides the financial asset transfer into overall transferand partial transfer of financial asset.
(1) Where the overall transfer of financial assets meets the conditions for recognizing the termination, thedifference between the following two amounts shall be recorded into the profits and losses of the current period:
1) The carrying amount of the transferred financial asset on the date of the termination of recognition.
2) The sum of the consideration received by the transfer of financial assets and the amount corresponding to theportion of which the recognition is terminated of the accumulated amount of changes in fair value originallyincluded in other comprehensive income (The financial assets involved in transfer are measured at fair value and
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their changes are included in other comprehensive income).
(2) Where the financial asset is partially transferred and the transferred portion overall meets the conditions forrecognizing the termination, the carrying amount of overall financial asset before transfer shall be apportionedbetween the portion to be terminated from recognition and the portion continued to be recognized (In suchcircumstances, the retained service assets shall be regarded as a portion of the financial assets continuing to berecognized) in accordance with their relative fair value on the transfer date, and the difference between thefollowing two amounts shall be recorded into the profits and losses of current period.
1) The carrying amount of the portion on the date of the termination of recognition.
2) The sum of the consideration received from the portion of which the recognition is terminated and the amountcorresponding to the portion of which the recognition is terminated of the accumulated amount of changes in fairvalue originally and directly included in other comprehensive income (The financial assets involved in transfer aremeasured at fair value and their changes are included in other comprehensive income).
If the transfer of financial assets does not meet the conditions for derecognition, the financial assets arecontinuously 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, therecognition of the financial liability or part thereof shall be terminated; If the Company enteredinto an agreement with its creditors to replace its existing financial liabilities with the newfinancial liability, and the contract terms of the new financial liabilities and the existing financialliabilities are substantially different, the existing financial liabilities shall be terminated forrecognition and the new ones shall be recognized at the same time.
As for substantive changes made to the contract terms (in whole or in part) of the existingfinancial liabilities, the existing financial liabilities (or part of it) will be terminated for recognition,and the financial liabilities after term revision will be recognized as a new financial liability.
When a financial liability is derecognized in whole or in part, the difference between the bookvalue of the financial liability derecognized and the consideration paid (including the non-cashassets transferred out or the new financial liabilities assumed) is included in the current profit andloss.
If the Company repurchases part of the financial liabilities, the entire book value of the financialliabilities will be allocated on the repurchase date according to the relative fair value of thecontinuing recognition part and the derecognition part. The difference between the book valueallocated to the derecognition part and the consideration paid (including the transferred non-cash
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assets or assumed new financial liabilities) is included in the current profit and loss.
5. Methods for determining the fair value of financial assets and financial liabilitiesFor financial instruments that have an active market, their fair values are determined by usingquotes in the active market. For financial instruments that do not have an active market, valuationtechniques are used to determine their fair values. In the valuation, the Company adopts valuationtechniques that are applicable under the current circumstances and have sufficient available dataand other information support, chooses the input values consistent with the characteristics ofassets or liabilities considered by market participants in the transactions of related assets orliabilities, and prioritizes the relevant observable input values. The Company uses unobservableinput 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, includingforward-looking information, and estimates the expected credit losses of financial assets measuredat amortized cost by the single or combined way and financial assets (debt instruments) measuredat fair value and whose changes are included in other comprehensive income. The measurement ofexpected credit losses depends on whether a significant increase in credit risk has occurred sincethe initial recognition of a financial asset.
If the credit risk of the financial instrument has increased significantly since initial recognition, theCompany shall measure its loss provision at an amount equivalent to the expected credit lossthroughout the life of the financial instrument. If the credit risk of the financial instrument has notincreased significantly since initial recognition, the Company shall measure its loss provision at anamount equivalent to the expected credit loss of the financial instrument in the next 12 months.The increased or reversed amount of the loss provision thus formed shall be included in thecurrent profit and loss as impairment losses or gains.
Usually, the Company considers that the credit risk of the financial instrument has increasedsignificantly when it is overdue for more than 30 days, unless there is conclusive evidence that thecredit risk of the financial instrument has not increased significantly after initial recognition.
If the credit risk of a financial instrument at the balance sheet date is low, the Company willconsider that the credit risk of the financial instrument has not increased significantly since initialrecognition.
Regarding the note receivable, account receivables and receivables financing, whether or not it
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contains a significant financing component, the Company always measures its loss provisions atan amount equivalent to the expected credit loss throughout the duration.
For lease receivables and long-term receivables formed by the company through sales of goods orrendering of services, the Company always chooses to measure the loss reserves at an amountequivalent to expected credit losses during the entire duration.
For notes receivable, accounts receivable, other receivables, financing of accounts receivable and long-termreceivables with objective evidence showing that there is impairment and is applicable to individual assessment,perform separate impairment tests, confirm expected credit losses, and make provisions for impairment; for notesreceivable, accounts receivable, other receivables, and financing of accounts receivable for which there is noobjective basis for impairment, or when there is insufficient evidence to assess expected credit losses at areasonable cost at the level of individual instruments, the Company refers to historical credit loss experience,combines with current conditions and judgments on future economic conditions, and divides the notes receivable,accounts receivable, other receivables, financing of accounts receivable and long-term receivables into severalportfolios based on the characteristics of credit risk, and calculates the expected credit loss on the basis of theportfolio. 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. |
(2)Account receivable
| 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 |
(3)Other account receivable
| Name of the combination | Method of measuring credit loss |
| Combination of the export tax rebate, VAT rebate upon levy | The company classifies the payments, tax refunds receivable, and collection and withholding payments from subsidiaries within the 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 |
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(4)Receivable financing
| 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 |
(11) Inventory
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, inventoryproducts, and materials for sale, in the normal production and operation process, the amount aftersubtracting the estimated selling expenses and relevant taxes from the estimated selling price shallbe used to determine the net realizable value. For inventory of materials that need to be processed,in the normal production and operation process, the amount after subtracting the estimated cost,estimated sales expense, and related taxes at the time of completion from the estimated sellingprice of the finished product shall be used to determine the net realizable value. The net realizablevalue 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 thequantity ordered by the sales contract, the net realizable value of the excess inventory is calculatedbased on the general sales price.
At the end of the period, provision for inventory depreciation is made based on a single inventory item; but forinventory with a large quantity and low unit price, provision for inventory depreciation is made based on theinventory category. For inventories that are related to the product series produced and sold in the same region, havethe same or similar end-use or purpose, and are difficult to measure separately from other items, the inventorydepreciation 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
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(2) Packaging- one pass method
(12)Contractual assets
If the Company has transferred goods to customers and has the right to receive consideration, and the right dependson factors other than the time lapses, it is recognized as contractual assets. The Company's unconditional (that is,only depending on the time lapses) right to collect consideration from customers are separately listed asreceivables.
The Company's determination method and accounting treatment method for the expected credit loss of contractassets are detailed in Note III/(10) 6. Impairment of financial instruments.
(13) Long-term equity investments
1. Criteria judgement for joint control and significant influence
Joint control is the Company’s contractually agreed sharing of control over an arrangement, which relevantactivities of such arrangement must be decided by unanimously agreement from parties who share control. Wherethe Company and other joint ventures exercise joint control over the investee and enjoy the rights to the net assetsof the investee, the investee is a joint venture of the Company.
Significant influence is the right of the Company to participate in the financial and operationdecision-making of an enterprise, but not to control or jointly control the formulation of suchpolicies with other parties. Where the Company is able to exert significant influence on theinvestee, the investee shall be a joint venture of the Company.
2. Determination of initial investment cost
(1) Long-term equity investment resulting from enterprise combination
Enterprise combination under the same control: If the Company pays cash, transfers non-cashassets or assumes debt, and issues equity securities as the consideration for the merger, the shareof the book value of the owner's equity of the combined party in the consolidated financialstatements of the ultimate controlling party on the combining date shall be used as the initialinvestment cost of long-term equity investment. If it is possible to control the investee under thesame control due to additional investments, etc., the initial investment cost of long-term equityinvestment 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 themerger date. The difference between the initial investment cost of the long-term equity investmenton the merger date and the sum of the book value of the long-term equity investment before themerger plus the book value of the new share payment consideration obtained on the merger dateadjusts the equity premium. If the equity premium is insufficient to be offset, the retained earnings
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shall be offset.
Business combination not under the same control: The Company uses the combination costdetermined on the purchase date as the initial investment cost of the long-term equity investment.If it is possible to exercise control over an investee that is not under the same control due toadditional investments, etc., the sum of the book value of the original equity investment plus thenewly increased investment cost is used as the initial investment cost calculated by the costmethod.
(2) Long-term equity investment obtained through other methods
For a long-term equity investment obtained by paying cash, the actually paid purchase price istaken as the initial investment cost.
For a long-term equity investment obtained by issuing equity securities, the fair value of the issuedequity securities is taken as the initial investment cost.
On the premise that the non-monetary asset exchange has commercial substance and that the fair value of theassets swapped in or out can be reliably measured, the initial investment cost of the long-term equity investmentswapped in by non-monetary assets exchange is determined by the fair value of assets swapped out and therelevant payable taxes and fees, unless there is conclusive evidence that the fair value of the assets swapped in ismore reliable; for non-monetary assets exchange that do not meet the above preconditions, the book value of theassets swapped out and the relevant taxes and fees payable are used as the initial investment cost of the long-termequity investment swapped in.
For a long-term equity investment obtained through debt restructuring, its entry value is determined based on thefair value of the abandoned creditor's rights and other costs such as taxes directly attributable to the asset, and thedifference between the fair value of the abandoned creditor's rights and the book value is included in the currentprofit and loss.
3. Follow-up measurement and gain/loss recognition
(1) Long-term equity investment measured at cost
The long-term equity investment in subsidiaries shall be measured at cost. In addition to the actual prices or theannounced but yet undistributed cash dividend or profit in consideration valuation, the current investment return isrecognized by the announced cash dividend or profit by the invested units.
(2) Long-term equity investment measured at equity
The long-term equity investment in associated enterprise and joint ventures shall be measured atcost. If the initial investment cost is greater than than the share of fair value of the invested entity’sidentifiable net assets, the initial investment cost of the long-term equity investment will not beadjusted; if the initial investment cost is less than than the share of fair value of the invested
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entity’s identifiable net assets, the difference shall reckoned in current gains/losses.
The investment gain and other comprehensive income shall be recognized based on theCompany’s share of the net profits or losses and other comprehensive income made by theinvestee, respectively. Meanwhile, the carrying amount of long-term equity investment shall beadjusted. The carrying amount of long-term equity investment shall be reduced based on theGroup’s share of profit or cash dividend distributed by the investee. In respect of the othermovement of net profit or loss, other comprehensive income and profit distribution of investee, thecarrying 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 theinvestee’s individual separately identifiable assets at the time of acquisition, after making appropriate adjustmentsthereto during the accounting period and according to the accounting policy of the Company. During the period ofholding the investment, the investee prepares the consolidated financial statements based on the net profit, othercomprehensive income, and the amount attributable to the investee in changes in other owners' equity in theconsolidated financial statements for business accounting.
When the Company confirms that it should share the losses incurred by the investee, it shall proceed in thefollowing order. Firstly, write off the book value of the long-term equity investment. Secondly, if the book value ofthe long-term equity investment is not sufficient to offset, the investment loss shall continue to be recognizedwithin the limit of the book value of long-term equity that substantially constitutes a net investment in the investee,and offset the book value of long-term receivables. Finally, after the above-mentioned treatment, if the enterprisestill bears additional obligations as stipulated in the investment contract or agreement, the accrual liabilities arerecognized 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 theactual purchase price is included in the current profit and loss.
When disposing of a long-term equity investment accounted for by using the equity method, usethe same basis as the investee directly disposes of related assets or liabilities, and make accountingtreatment to the portion that was originally included in other comprehensive income according tothe corresponding proportion. The owner's equity recognized as a result of changes in otherowner's equity of the investee other than net profit or loss, other comprehensive income, and profitdistribution is carried forward to the current profit and loss on a pro rata basis, except for othercomprehensive 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
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equity investment, etc., the remaining equity after disposal shall be calculated in accordance withthe financial instrument recognition and measurement standards, and the difference between thefair value and the book value on the day of losing the joint control or significant influence isincluded in the current profit and loss. Other comprehensive income of the original equityinvestment recognized due to using the equity method for accounting shall adopt the accountingtreatment on the same basis as the investee directly disposes of related assets or liabilities whenterminating the adoption of equity method for accounting. The owner's equity recognized as aresult 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 theadoption of equity method for accounting.
The control over the investee is lost due to the disposal of part of the equity investment and the capital increase inthe subsidiary by other investors resulting in a decline in the shareholding ratio of the Company, in preparingseparate financial statements, the remaining equity interest which can apply common control or impose significantinfluence over the investee shall be accounted for using equity method. Such remaining equity interest shall betreated as accounting for using equity method since it is obtained and adjustment was made accordingly. Forremaining equity interest which cannot apply common control or impose significant influence over the investeel, itshall be accounted for using the recognition and measurement standard of financial instruments. The differencebetween 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 preparing individual financial statements, if the remaining equity after disposal uses cost method or equitymethod for accounting, the equity investments held before the acquisition date shall be carried forward inproportion to other comprehensive income and other owner's equity recognized through equity method accounting;For the remaining equity interest after disposal accounted for using the recognition and measurement standard offinancial instruments, other comprehensive income and other owners’ equity shall be fully transferred.
(14) Investment real estate
Investment real estate is defined as the real estate with the purpose to earn rent or capital appreciation or both,including the rented land use rights and the land use rights which are held and prepared for transfer afterappreciation, the rented buildings. (Including buildings for lease after self-construction or development activitiescompleted and buildings under construction or development for lease in the future)
Investment real estate of the Company are measured at cost model. The Investment real estate-rental buildings measured at cost model has the same depreciation policy as fixed assets, the landuse right for lease is exercise the amortization policy as intangible assets.
(15) Fixed assets
1. Recognition conditions for the fixed assets
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Fixed assets is defined as the tangible assets which are held for the purpose of producing goods,providing services, lease or for operation & management, and have more than one fiscal year ofservice life. Fixed assets are recognized when the following conditions are simultaneously met:
(1) The economic benefits with the fixed assets concerned are likely to flow into the enterprise;and
(2) cost of the fixed assets can be measured reliably.
2. Depreciation method
The depreciation of fixed assets is calculated and accrued by the straight-line depreciation method, and thedepreciation rate is determined according to the fixed asset category, estimated useful life and estimated netresidual value rate. If the service life of each component of the fixed asset is different or the economic benefits areprovided to the enterprise in different ways, different depreciation rates or depreciation methods shall be selectedand depreciation shall be calculated separately.
Depreciation method, depreciation period, residuals rate and annual depreciation rate for all kindsof fixed assets are 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 thedepreciation amount per hour of gas turbine generator set based on equipment value, predicted net remaining valueand 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 |
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(16) Construction in progress
Construction in progress take the necessary expenditures incurred before the construction of the asset reaching theexpected usable state as the entry value of the fixed assets. If the constructed fixed assets have reached theexpected usable state of the project, but the final accounts for completion have not yet been processed, from thedate of reaching the expected usable state, the constructed fixed assets will be transferred to the fixed assets at theestimated value based on the project budget, cost, or actual project cost, and accrue the depreciation of fixed assetsaccording to the Company's fixed asset depreciation policy, and adjust the original temporary estimated valueaccording to the actual cost after completing the final accounts, but not adjust the original accrued depreciationamount.
(17) Borrowing expenses
1.Recognition principle of the capitalization of borrowing expenses
Borrowing expenses include interest, amortization of discounts or premiums related to borrowings,ancillary costs incurred in connection with the arrangement of borrowings, and exchangedifferences arising from foreign currency borrowings.
If the borrowing expenses incurred by the company can be directly attributable to the acquisition, construction orproduction of assets that meet the capitalization conditions, they shall be capitalized and included in the cost of therelevant assets; other borrowing expenses shall be recognized as expenses based on the amount incurred whenincurred and included in current profit and loss.
Assets qualified for capitalization, refers to the fixed assets, investment real estate, inventory and other assets thatrequire a considerable period of time for purchase, construction or production activities to reach the intended useor sale status.
The capitalization of borrowing expenses starts when the following conditions are met at the sametime:
(1) Asset expenditures have occurred, including expenditures in the form of paying cash,transferring non-cash assets, or assuming interest-bearing debts for the acquisition, construction orproduction of assets that meet the conditions for capitalization;
(2) borrowing expenses have incurred;
(3) The acquisition, construction or production activities necessary for the assets to reach theintended usable or saleable 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 theborrowing expenses starts to the point when the capitalization is stopped. The period during whichthe capitalization of the borrowing expenses is suspended is not included.
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When the acquisition, construction or production of assets that meet the capitalization conditionsreaches the intended usable or saleable state, the capitalization of borrowing expenses shall cease.
When part of projects in the acquisition, construction or production of assets that meet thecapitalization conditions are completed separately and can be used independently, thecapitalization of the borrowing expenses of the part of the assets shall be stopped.
If each part of the assets purchased, constructed or produced is completed separately, but cannotbe used or sold until the entirety is completed, the capitalization of borrowing expenses shall bestopped when the entire asset is completed.
3. The period of suspension of capitalization
If an abnormal interruption occurs during the acquisition, construction or production of an assetthat meets the capitalization conditions, and the interruption lasts for more than 3 months, thecapitalization of borrowing expenses shall be suspended; if the interruption is the necessaryprocedure for the acquisition, construction or production of assets that meet the capitalizationconditions to reach the intended usable state or saleable state, the borrowing expenses shallcontinue to be capitalized. The borrowing expenses incurred during the interruption period shall berecognized 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 borrowingexpensesFor special loans borrowed for the acquisition, construction or production of assets that meet thecapitalization conditions, the amount after subtracting the interest income obtained by depositingthe unused borrowing funds in the bank or the investment income obtained from temporaryinvestment from the actual borrowing expenses incurred in the current period of the special loansis used to determine the capitalized amount of borrowing expenses.
For general borrowings used for the acquisition, construction or production of assets that meet the capitalizationconditions, the amount of borrowing expenses that should be capitalized for general borrowings is calculated anddetermined based on the weighted average of the asset expenditures of the accumulated asset expenditureexceeding the part of the special borrowings multiplied by the capitalization rate of the general borrowings used.The capitalization rate is calculated and determined based on the weighted average interest rate of generalborrowings.
(18) Intangible assets
1. Valuation methods of intangible assets
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(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 otherexpenditures incurred to make the assets reach the intended purpose. If the purchase price ofintangible assets have a delay in payment beyond normal credit conditions and is of financingnature, the cost of intangible assets is determined on the basis of the current value of the purchaseprice.
For intangible assets used by the debtor to repay the debt through debt restructuring, the entryvalue is determined by the fair value of the waived creditor’s rights and other costs that can bedirectly attributable to the tax incurred to make the asset reach its intended use, and the differencebetween the fair value and the book value of the waived creditor's rights is included in the currentprofit and loss.
On the premise that the non-monetary asset exchange has commercial substance and the fair valueof the swap-in assets and the swap-out assets can be reliably measured, the entry value of theswap-in intangible assets through non-monetary assets exchange is determined on the basis of thefair value of the swap-out assets, unless there is conclusive evidence that the fair value of theswap-in assets is more reliable; for non-monetary asset exchanges that do not meet the abovepremises, the book value of the swap-out assets and the relevant taxes and fees payable shall beused 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 periodof economic benefits brought to the enterprise; or the intangible assets shall be regarded as with anuncertain service life if the period of economic benefits brought by intangible assets cannot beforeseen, 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 usefullife using the straight-line method for the original value minus the estimated net residual value andthe accumulated amount of provision for impairment from the time it is available for use.Intangible assets with uncertain service life shall not be amortized.
At the end of the period, review the useful life and amortization method of intangible assets with alimited useful life. If there is any change, it will be treated as a change in accounting estimates.
3. Judgment basis for intangible assets with uncertain service life and procedures for
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reviewing their service lifeTo review the service life of an intangible asset with a uncertain service life, if there is evidencethat the period of economic benefits brought by the intangible asset is predictable, estimate itsservice life and amortize according to the amortization policy for intangible assets with limitedservice life.
4. Specific criteria for dividing the research phase and the development phase
The company's internal research and development project expenditures are divided into researchphase expenditures and development phase expenditures.Research phase: it’s the phase of planned investigations and research activities with originality toacquire and understand new scientific or technical knowledge, etc.Development phase: it’s the phase to apply the research results or other knowledge to a certainplan or design so as to produce new or substantially improved materials, devices, products andother activities before commercial production 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 intangibleassets when the following conditions are met simultaneously:
1. It is technically feasible to complete the intangible asset so that it can be used or sold;
2. There is an intention to complete the intangible asset and use or sell it;
3. The way that intangible assets generate economic benefits, including the ability to prove that the productsproduced by the intangible assets are marketable or the intangible assets themselves are marketable, and theintangible 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 theintangible asset, and have the ability to use or sell the intangible asset;
5. The expenditure attributable to the development stage of the intangible asset can be reliably measured.
(19) Impairment of long-term assets
Long-term equity investments, investment real estate measured by the cost model, fixed assets,construction in progress, intangible assets with limited service life and other long-term assets thatshow signs of impairment on the balance sheet date shall be tested for impairment. If theimpairment test result shows that the recoverable amount of an asset is less than its carryingamount, the impairment provision will be made according to the difference and recognized as animpairment loss. The recoverable amount of an asset is the higher of its fair value less costs ofdisposal 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 notpossible to estimate the recoverable amount of the individual asset, the Group shall determine therecoverable amount of the asset group to which the asset belongs. The asset group is the smallest
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group of assets capable of generating cash flows independently.
As for the goodwill, intangible assets with an indefinite useful life and intangible assets beyondworking conditions, the impairment tests shall be carried out at least at the end of each year.
The Company conducts a goodwill impairment test. The book value of the goodwill formed by thebusiness combination shall be allocated to the relevant asset group according to a reasonablemethod from the date of purchase; if it is difficult to allocate to the relevant asset group, it shall beallocated to the relevant portfolio of asset groups. The Company allocates the book value ofgoodwill based on the relative benefits that the relevant asset group or portfolio of asset groupscan obtain from the synergies of the business combination, and conducts a goodwill impairmenttest on this basis.
When conducting an impairment test on a related asset group or portfolio of asset groups that contains goodwill, ifthere are signs of impairment for an asset group or portfolio of asset groups related to goodwill, the asset group orportfolio of asset groups that does not contain goodwill should be tested first, calculate the recoverable amount,and compare it with the relevant book value to confirm the corresponding impairment loss. Then conduct animpairment test on the asset group or portfolio of asset groups that contains goodwill, and compare the book valueof these related asset groups or asset group portfolios (including the book value of the allocated goodwill) with therecoverable amount, if the recoverable amount of the relevant asset group or the asset group portfolio is lower thanits 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 futureaccounting 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 ismore than one year (excluding one year). Long-term deferred expenses are amortized in installments according tothe benefit period of the expense items. If the long-term deferred expense item cannot benefit the future accountingperiod, all the amortized value of the item that has not been amortized shall be transferred to the current profit andloss.
(21)Contractual liabilities
Contractual liabilities refer to the Company's obligation to transfer goods or services to customers forconsideration received or receivable from customers. Contractual assets and contractual liabilities under the samecontract are presented in net amount.
(22) Staff remuneration
1. Accounting treatment of a short-term compensation
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During the accounting period when employees provide services to the Company, the Companyrecognizes the actual short-term compensation as a liability and includes it in the current profit andloss or the cost of related assets.
The social insurance premiums and housing provident fund paid by the Company for employees,as well as the labor union funds and employee education funds drawn in accordance with theregulations, of which the corresponding employee compensation amount shall be calculated anddetermined according to the specified accrual basis and accrual ratio during the accounting periodwhen the employees provide services to the Company.
If employee welfare expenses are non-monetary and can be measured reliably, they shall bemeasured at fair value.
2. Accounting treatment methods for post-employment benefits
(1) Defined contribution plans
The Company pays basic endowment insurance and unemployment insurance for employees inaccordance with the relevant regulations of the local government. During the accounting periodwhen employees provide services to the Company, the amount payable is calculated based on thelocal payment base and proportion, recognized as a liability, and included in current profit and lossor related asset cost.
In addition to basic endowment insurance, the Company has also established an enterprise annuitypayment system (supplementary endowment insurance)/enterprise annuity plan in accordance withthe relevant policies of the national enterprise annuity system. The Company pays a certainpercentage of the total wages of employees to the local social insurance agency/annuity plan, andthe corresponding expenditure is included in the current profit and loss or the cost of relatedassets.
(2) Defined benefit plans
The Company assigns the welfare obligations arising from the defined benefit plans to the periodduring which the employees provide services according to the formula determined by the expectedcumulative welfare unit method, and includes them in the current profit and loss or the cost ofrelated assets.
The deficit or surplus formed by the present value of the defined benefit plan’s obligations minusthe fair value of the defined benefit plan’s assets is recognized as a defined benefit plan’s netliabilities or net assets. If there is a surplus in the defined benefit plan, the Company shall use thelower of the surplus of the defined benefit plan and the asset ceiling to measure the net assets of
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the defined benefit plan.
All defined benefit plans obligations, including obligations expected to be paid within twelvemonths after the end of the annual reporting period in which employees provide services, arediscounted based on the market yield of the national debt matching with the obligation period andcurrency of the defined benefit plan or the high-quality corporate bonds in an active market on thebalance sheet date.
The service cost incurred by the defined benefit plan and the net interest of the net liabilities or netassets of the defined benefit plan are included in the current profit and loss or the related asset cost;the changes in net liabilities or net assets resulting from the remeasurement of defined benefitplans are included in other comprehensive income, and shall not be transferred back to profit orloss in the subsequent accounting period, and the part that was originally included in othercomprehensive income will be carried forward to undistributed profit within the scope of equitywhen the original defined benefit plan is terminated.
In the settlement of the defined benefit plan, the difference between the present value of theobligation of the defined benefit plan and the settlement price determined on the settlement date isused to confirm the settlement gain or loss.
3. Accounting treatment methods for dismissal benefits
When the Company cannot unilaterally withdraw the dismissal benefits provided by the termination of the laborrelationship plan or redundancy proposal, or when confirming the costs or expenses related to the reorganizationinvolving the payment of the dismissal benefits (the earlier of the two), recognize employee compensationliabilities arising from dismissal benefits and include in the current profit and loss.
(23) Accrual liability
1. Recognition criteria
The obligations with contingencies concerned as litigation, debt guarantee and contract in loss arerecognized as accrual liability when the following conditions are met simultaneously:
(1) the liability is the current liability that undertaken by the Company;
(2) the liability has the probability of result in financial benefit outflow; and
(3) the responsibility can be measured reliably for its value.
2. Measurement on vary accrual liability
The Company's accrual liabilities are initially measured based on the best estimate of theexpenditure required to perform the relevant current obligations.
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When determining the best estimate, the Company comprehensively considers factors such asrisks, uncertainties and time value of money related to contingencies. If the time value of moneyhas a significant impact, the best estimate is determined after discounting the relevant future cashoutflows.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 ofoccurrence of various results within this range is the same, the best estimate is determinedaccording to the middle value of the range, that is, the average number of the upper and lowerlimits.
There is no continuous range (or interval) for the required expenditure, or although there is acontinuous range, the possibility of occurrence of various results within the range is not the same,if the contingency involves a single item, the best estimate shall be determined based on theamount most likely to occur; if the contingency involves multiple items, the best estimate shall becalculated and determined according to various possible outcomes and related probabilities.
If all or part of the expenditures required by the Company to settle the accrual liabilities are expected to becompensated by a third party, the compensation amount shall be separately recognized as an asset when it isbasically certain that it can be received, and the confirmed compensation amount shall not exceed the book valueof the accrual liability.
(24) Revenue
General principlesThe Company recognizes the income when it has fulfilled its performance obligations in the contract, that is, whenthe customer has obtained control of the relevant goods or services. The performance obligation refers to thecommitment in the contract that the Group transfers clearly distinguishable goods or services to the customer.Obtaining control over related goods or services means being able to lead the use of the goods or the provision ofthe 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 periodof time, the Company recognizes revenue within a period of time according to the performance of the contract: (1)The customer obtains and consumes the economic benefits brought by the Company's performance at the sametime as the Company fulfills the contract; (2) The customer can control the products under construction during theperformance of the Company; (3) The products produced during the performance of the Company haveirreplaceable uses, and the Company has the right to collect payment for the accumulated performance part that hasbeen completed so far during the entire contract period. Otherwise, the Company recognizes revenue at the pointwhen 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,performance bonuses and claims, which forms variable consideration. The Company determines the best estimate
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of the variable consideration based on the expected value or the most likely amount, but the transaction price thatincludes the variable consideration does not exceed the amount that the accumulated recognized revenue is mostunlikely to be materially reversed when the relevant uncertainty is eliminated.
Significant financing componentIf there is a significant financing component in the contract, the Company shall determine the transaction pricebased on the amount payable in cash when the customer assumes control of the goods or services. The differencebetween the transaction price and the contract consideration shall be amortized by the effective interest methodduring the contract period.
On the starting date of the contract, if the company expects the customer to obtain control of the product and thecustomer pays the payment within one year, the significant financing component in the contract will not beconsidered.
Non-cash considerationIf the customer pays a non-cash consideration, the Company shall determine the transaction price based on the fairvalue of the non-cash consideration. If the fair value of the non-cash consideration cannot be reasonably estimated,the Company indirectly determines the transaction price by referring to the stand-alone selling price of the goodspromised to be transferred to the customer. If the fair value of non-cash consideration changes due to reasons otherthan the form of consideration, it shall be used as variable consideration for accounting treatment in accordancewith relevant regulations.
Consideration payable to customersFor the consideration payable to customers, the Company offsets the transaction price from the considerationpayable to the customer, and offsets the current revenue at the time point of the later when the relevant revenue isrecognized and the promised payment of the customer consideration, unless the consideration payable is to obtainother clearly distinguished products from the customer.
Sales with sales return clausesFor sales with a sales return clause, when the customer obtains control of the relevant product, our companyrecognizes the revenue in accordance with the amount of consideration expected to be entitled to be collected dueto transfer of goods to customers (that is, does not include the amount expected to be refunded due to sales returns),and recognizes liabilities in accordance with the amount expected to be refunded due to sales returns. At the sametime, according to the expected book value of the returned goods at the time of transfer, the balance after deductingthe estimated cost of recovering the goods (including the value impairment of the returned goods) is recognized asan asset, and the net carry-over cost of the above asset cost is deducted according to the book value of thetransferred commodity at the time of transfer. On each balance sheet date, re-estimate the future sales returnsituation, and if there 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 ensuringthat the goods or services sold to the customer meet the established standards, the quality assurance constitutes asingle performance obligation. Otherwise, the Company will make an accounting treatment for quality assurance
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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 ofthe transaction based on whether it has control over the product or service before the transfer of the product orservice to the customer. If the Company is able to control the products or services before transferring theproducts or services to the customers, the Company is the principal responsible person, and the income isrecognized based on the total consideration received or receivable; otherwise, the Company is the agent, and theincome is recognized according to the amount of commission or handling fee expected to have the right to collect,the amount is determined according to the net amount of the total consideration received or receivable 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 providescustomers with a major right. If an enterprise provides a major right, it shall be a single performance obligation,and the transaction price shall be allocated to the performance obligation in accordance with the relevantprovisions of the standards. When the customer exercises the purchase option in the future to obtain control of therelevant commodity, or when the option lapses, the corresponding income shall be recognized. If the stand-aloneselling price of the customer's additional purchase option cannot be directly observed, the Company shallreasonably 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 theoption, etc.. Although the customer has additionally purchased the commodity option, the price at the time whenthe customer exercises the option to purchase the commodity reflects the stand-alone selling price of thesecommodities, and it should not be considered that the 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 propertylicense constitutes a single performance obligation in accordance with the relevant provisions of the standards, andif it constitutes a single performance obligation, it shall further determine whether it will be performed within acertain period of time or at a certain point in time.When the following conditions are met at the same time, the relevant revenue is recognized as a performanceobligation performed within a certain period of time; otherwise, the relevant revenue is recognized as aperformance obligation performed at a certain point in time:
(1) Contract requirements or customers can reasonably expect that the enterprise will engage in activities that havea significant impact on the intellectual property rights;
(2) The activity will have a favorable or unfavorable impact on customers;
(3) The activity will not result in the transfer of a certain commodity to the customer.
After-sales repurchase transactionFor after-sales repurchase transactions, the Company distinguishes the following two situations for accountingtreatment:
(1)If there is a repurchase obligation due to the existence of a long-term arrangement with the customer or theCompany enjoys the repurchase right, the Company shall conduct the corresponding accounting treatment as a
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lease transaction or financing transaction. Among them, if the repurchase price is lower than the original sellingprice, it shall be regarded as a lease transaction, and shall be accounted for in accordance with the relevantprovisions of the standards; if the repurchase price is not lower than the original selling price, it shall be regardedas a financing transaction, and the financial liabilities shall be confirmed when receiving the client's payment, andthe 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 rightexpires, the financial liabilities is derecognized, and the revenue is recognized at the same time.
(2)If the Company is obliged to repurchase commodities at the request of the customer, it shall assess whether thecustomer has a major economic motivation to exercise the right of claim on the commencement date of contract. Ifthe customer has a major economic motivation to exercise the right of claim, the enterprise shall treat the after-salerepurchase as a lease transaction or financing transaction, and conduct accounting treatment in accordance with theprovisions of present article (1); otherwise, the Company will treat it as a sales transaction with a sales returnclause, and perform accounting treatments in accordance with relevant regulations of the standards.
Customer's unexercised rightsIf the Company receives advance payments from customers for sales of goods, it shall first recognize the paymentsas liabilities, and then convert them into revenue when the relevant performance obligations are fulfilled. When theadvance payment does not need to be refunded and the customer may waive all or part of its contract rights, theCompany expects to be entitled to obtain the amount related to the contract rights waived by the customer, and theabove-mentioned amount shall be recognized as revenue in proportion to the mode in which the customer exercisesthe contractual rights. Otherwise, the Company can only convert the relevant balance of the above liabilities intoincome when the possibility of the customer requesting it to perform the remaining performance obligations isextremely 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 tothe commencement date) shall be included in the transaction price, and it shall be assessed whether the initial fee isrelated to the transfer of the promised goods to the customer. If the initial fee is related to the transfer of thepromised goods to the customer, and the goods constitutes a single performance obligation, the Companyrecognizes the income at the transaction price allocated to the goods when transferring the goods. If the initial feeis related to the goods promised to transfer to the customer, but the goods does not constitute a single performanceobligation, the Company will recognize the income at the transaction price allocated to the single performanceobligation when the single performance obligation containing the product is fulfilled. If the initial fee is not relatedto the goods promised to transfer to the customer, it shall be used as an advance payment for the goods to betransferred in the future, and shall be recognized as income when the goods is transferred in the future.
If the Company has collected an initial fee that does not need to be refunded and should carry out initial activitiesto perform the contract, but these activities do not transfer the promised goods to the customer, the initial fee isrelated to the goods promised to be transferred in the future, and should be recognized as revenue whentransferring the goods in the future, and the Company does not consider these initial activities when determiningthe progress of the contract. The Company’s expenditures for the initial activities should be recognized as an assetor included in the current profit and loss in accordance with the relevant provisions of the standards.Specific principles
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The Company recognizes the revenue when it fulfills its performance obligations in the contract, that is, when thecustomer obtains control of the relevant goods or services. 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 economicbenefits from it.
(1) Commodity sales revenue
The sales contract between the Company and the customers usually only contains the performance obligation forthe transferred goods. The Company usually recognizes revenue at a certain point in time on the basis ofcomprehensive consideration of the following factors: obtaining the current right to receive payment of the goods,the transfer of major risks and rewards in the ownership of the goods, the transfer of the legal ownership of thegoods, and the transfer of the physical asset of the goods, the customer accepts the goods.
Electricity sales revenueThe Company produces electricity through firepower and realizes sales through integration into Guangdong PowerGrid. For electricity sales, the Company recognizes the realization of revenue when it has produced electricity andobtains the grid electricity statistical table confirmed by the Electric Power Bureau.
(2) Income from rendering of labor services
The service contracts between the Company and the customers usually include performance obligations such asoperation and maintenance services, labor services, etc.The Company evaluates the contract on the start date of the contract, identifies each individual performanceobligation contained in the contract, and determines whether each individual performance obligation is performedwithin a certain period of time or at a certain point in time. If one of the following conditions is met, it is aperformance obligation performed within a certain period of time, the Company recognizes revenue within aperiod 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 sametime as the Company'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 theCompany has the right to collect payment for the cumulative performance part that has been completed so farduring the entire contract period. Otherwise, the Company recognizes revenue at the time point when the customerobtains control of the relevant goods or services.
○
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 confirmedwith the transportation 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, andrecognize the income according to the contract;Operation and maintenance, management projects: monthly revenue is temporarily estimated and recognized basedon attendance time and labor prices of attendants, and the temporary estimated revenue will be adjusted afterobtaining the monthly statement confirmed by the supplier's stamp and signature, the progress confirmation letter,
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and the attendance sheet.
(25)Contractual costs
The cost of obtaining the contractIf the incremental cost (that is, the cost that would not be incurred without obtaining the contract)incurred by the Company to obtain the contract is expected to be recovered, it shall be recognizedas an asset, and use the same basis for the recognition of the income of goods or services related tothe asset for sales, and be included in the current profit and loss. If the asset amortization perioddoes not exceed one year, it shall be included in the current profit and loss when it occurs. Otherexpenses incurred by the Group in order to obtain the contract shall be included in the currentprofit 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 thescope of other accounting standards for business enterprises except the income standard and meetsthe following conditions at the same time is recognized as an asset: (1) The cost is directly relatedto a current or expected contract; (2) The cost increases the resources of the Group for fulfillingthe performance obligations in the future; (3) The cost is expected to be recovered. Theabove-mentioned assets are amortized on the same basis as the recognition of the income of goodsor 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 firstdetermines the impairment loss of other assets related to the contract that are confirmed inaccordance with other relevant enterprise accounting standards; then, based on the differencebetween the book value of which is higher than the remaining consideration that the Company isexpected to obtain due to the transfer of the asset-related commodities and the estimated cost oftransferring the related commodities, the excess shall be provided for impairment and recognizedas an asset impairment loss.
If the impairment factors of the previous period have changed, causing the aforementioned difference is higherthan the book value of the asset, the original provision for asset impairment shall be reversed and included in thecurrent profit and loss, but the book value of the asset after the reversal shall not exceed the book value of the asseton the date of reversal under the assumption that no impairment provision is made.
(26) Government subsidy
1. Type
Government subsidy refers to the monetary asset and non-monetary asset that the Companyobtains from the government free of charge which are divided into the asset-related government
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subsidy and the income-related government subsidy.
Government subsidies related to assets refer to government subsidies obtained by the Company forpurchase and construction or to form long-term assets in other ways. Government subsidies relatedto income refer to government 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 conditionsstipulated in the financial support policy and is expected to receive financial support funds, thegovernment subsidy shall be recognized according to the amount receivable. In addition,government subsidies are confirmed when they are actually received.
If a government subsidy is a monetary asset, it shall be measured at the amount received orreceivable. If a government subsidy is a non-monetary asset, it shall be measured at its fair value;if its fair value cannot be obtained reliably, it shall be measured at its nominal amount (1 Yuan).Government subsidies measured at their nominal amounts are directly included in the currentprofits and losses.
3. Accounting treatment
Government subsidies related to assets are used to offset the book value of related assets or berecognized as deferred income, those recognized as deferred income shall be included in thecurrent profit and loss (those related to the Company’s daily activities shall be included in otherincome; those not related to the Company’s daily activities shall be included in the non-operatingincome) in a reasonable and systematic way within the useful life of the relevant assets;
Government subsidies related to income that are used to compensate the Company’s related costsor losses in subsequent periods shall be recognized as deferred income, and shall be included inthe current profits and losses (those related to the Company’s daily activities shall be included inother income; those not related to the Company’s daily activities shall be included in thenon-operating income) or used to offset related costs or losses during the period when the relevantcosts or losses are recognized; those used to compensate the Company’s related costs or losses aredirectly included in the current profits and losses (those related to the Company’s daily activitiesshall be included in other income; those not related to the Company’s daily activities shall beincluded in the non-operating income) or used to offset related costs or losses.
The policy-related preferential loan interest discount obtained by the Company is divided into thefollowing two situations and is accounted for separately:
(1) The finance allocates interest subsidy to the lending bank, if the lending bank provides loans to the Company at
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a preferential policy interest rate, the Company uses the amount of borrowing actually received as the entry valueof the loan, and calculates the related borrowing costs according to the loan principal and the policy preferentialinterest rates.
(2) If the finance directly allocates interest subsidy funds to the Company, the Company will offset thecorresponding interest discount against the relevant borrowing costs.
(27) Deferred income tax asset/ deferred income tax liability
For deductible temporary differences to recognize deferred income tax assets, they shall be withinthe limit of the taxable income that is likely to be obtained in the future to deduct deductibletemporary differences. For the deductible losses and tax deductions that can be carried forward forsubsequent years, they shall be within the limit of the future taxable income that is likely to beused to deduct the deductible losses and tax deductions to recognize the corresponding deferredincome tax assets.
For taxable temporary differences, except for special circumstances, deferred income tax liabilitiesare recognized.
Special circumstances that do not recognize deferred income tax assets or deferred income taxliabilities include initial recognition of goodwill; Other transactions or matters that do not affectaccounting profits or taxable income (or deductible losses) when they occur except for a businesscombination.
When having the statutory right to settle on a net basis, and intending to settle on a net basis orobtain assets and pay off liabilities at the same time, the current income tax assets and currentincome tax liabilities are presented as the net amount after offsetting.
When having the statutory right to settle current income tax assets and current income tax liabilities on a net basis,and the deferred income tax assets and deferred income tax liabilities are related to the income tax levied by thesame tax administration department on the same taxpayer or related to different taxpayers, however, in the futureperiod during which important deferred income tax assets and liabilities are reversed, when the taxpayer involvedintends to settle the current income tax assets and liabilities on a net basis or obtain assets and repay liabilities atthe same time, the deferred income tax assets and deferred income tax liabilities are presented as the net amountafter offsetting.
(28) Leasing
Accounting policy applicable from 1
stJanuary 2021A leasing is a contract in which the lessor cedes the right to use an asset to the lessee for a certainperiod of time in return for consideration.
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1. The Company acts as the lessee
The Company recognizes the right-of-use assets on the commencement date of the lease term andrecognizes the lease liabilities at the present value of the outstanding lease payments. The leasepayments include fixed payments, as well as payments where there is reasonable certainty that apurchase option will be exercised or a lease option will be terminated. The variable rentdetermined based on a certain percentage of sales is not included in the lease payment, and isincluded in the current profit and loss when it actually occurs.
The Company’s right-of-use assets include leased houses and buildings, machinery and equipment,means of transport, computers and electronic equipment, etc.
For short-term leases with a lease term of less than 12 months and low-value asset leases with alow value when a single asset is brand-new, the Company chooses not to recognize theright-of-use assets and lease liabilities, and includes the relevant rental expenses into currentprofits and losses or the relevant assets cost in each period of the lease term according to thestraight-line method.
2. The Company acts as the lessor
A lease that transfers substantially all the risks and rewards associated with the ownership of theleased asset is a finance lease. Other leases are operating leases.
(1) Operating lease
When the Company operates leased buildings, machinery and equipment, and means of transport,the rental income from operating leases shall be recognized in accordance with the straight-linemethod during the lease term. The Company will include variable rent determined based on apercentage of sales in rental income when it actually incurs.
(2) Finance lease
On the beginning date of the lease term, the Company recognizes the finance lease receivables forfinance leases and derecognizes related assets. The Company presents the finance leasereceivables as long-term receivables, and the finance lease receivables received within one year(including one year) from the balance sheet date are presented as non-current assets due withinone year.Accounting policy applicable before 1
stJanuary 2021
1. Accounting treatment of operating leases
(1) The lease fee paid by the company for rented assets shall be apportioned on a straight-linebasis during the entire lease period without deducting the rent-free period and included in the
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current expenses. The initial direct expenses related to the lease transaction paid by the companyshall be included in the current expenses.When the asset lessor bears the lease-related expenses that should be borne by the company, thecompany deducts this part of the cost from the total rent, amortizes according to the deductedrental expenses during the lease 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-linebasis during the entire lease period without deducting the rent-free period and recognized aslease-related income. The initial direct expenses related to the lease transaction paid by thecompany shall be included in the current expenses; if the amount is large, it shall be capitalizedand included in the current income in installments based on the same basis as the lease-relatedincome recognition during the entire lease period.When the company bears the lease-related expenses that should be borne by the lessee, thecompany deducts this part of the expenses from the total rental income, and distributes accordingto the deducted rental expenses during 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 fairvalue of the leased asset and the present value of the minimum lease payment as the entry value ofthe leased asset, and the minimum lease payment as the entry value of of long-term payable, andthe difference is regarded as unrecognized financing expenses. Refer to Note III (15) Fixed Assetsfor the identification basis, valuation and depreciation methods of finance leased assets.
The company uses the effective interest method to amortize unrecognized financing expensesduring the asset lease 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 sumof receivable financing lease payments and unguaranteed residual value and its present value as unrealizedfinancing income as unrealized financing income, which is recognized as rental income during each period whenthe rent is received in the future, the company's initial direct expenses related to the lease transactions are includedin the initial measurement of the financial lease receivables, and the amount of income recognized during the leaseperiod is reduced.
(29) Changes of major accounting policy and accounting estimation
1. Change of major accounting policies
(1) New leasing standards
On December 7, 2018, the Ministry of Finance revised the Accounting Standards for BusinessEnterprises No. 21 -- Lease (hereinafter referred to as the "New Lease Standards") by Accounting[2018] No. 35, which has been implemented by the Company from January 1, 2021. In thepreparation of the 2021 annual financial statements, the Company has implemented the relevant
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accounting standards and processed them in accordance with the relevant bridging provisions. Onthe first execution date, the Company chooses to re-evaluate whether any previously existingcontract is a lease or includes a lease and applies this method consistently to all contracts, so thebridging provisions of this Standards will be applied only to those contracts identified as leasesunder the original lease standards.
The Company's accounting policy for short-term leases and leases of low-value assets is the unrecognizedright-of-use assets and lease liabilities. According to the bridging provisions of the new lease standards, theCompany will conduct accounting treatment in accordance with the new lease standards since the first executiondate for short-term leases and low-value asset leases prior to the first execution date, there will be no retroactiveadjustment for short-term leases and leases of low-value assets.
Implementation of the new leasing standard will have no impact on the relevant items of financialstatements dated 1
st
January 2021
(2) Execution of the Accounting Standards for Business Enterprise Interpretation No. 14The Accounting Standards for Business Enterprise Interpretation No. 14 was issued by Ministryof Finance on 26 January 2021, the Company carry out the Interpretation No.14 since the issueddate, and implementation of the Interpretation No.14 had no material impact on the financialstatement of the current reporting period.
2. Change of major accounting estimation
No change of major 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. | 13%, 9%, 6%, 5%, 3% |
| City maintenance tax | According to the actual payment of VAT and consumption tax | 7%, 5% |
| 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 |
(2) Explanation of the income tax rate of the taxpayer of enterprise income tax
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| Taxpaying body | Rate of income tax |
| The Company | 15% |
| New Power Company | 25% |
| Engineering Company | 15% |
| Shenzhen Server | 25% |
| Environment Protection Company | 15% |
| Zhongshan Electric Power | 25% |
| Singapore Company | 17% |
| Shen Storage | 25% |
| Syndisome (HK) | 16.5% |
(3) Preferential tax policies and basis
1. Preferential corporate income tax policy:
(1) According to the Record List of the Second Batch of High-tech Enterprises recognized byShenzhen in 2021, Shenzhen Nanshan Power Co., Ltd. has obtained the National High-techEnterprise Certification no. GR202144204080, which is valid for 3 years. From 2021 to 2023, thecompany enjoys the preferential corporate income tax of high-tech enterprises, the corporateincome tax is paid at the rate of 15.00%.
(2) According to the Document GKHZ (2020) No. 46, Shenzhen Shennandian TurbineEngineering Technology Co., Ltd. has obtained the National High-tech Enterprise Certification no.GR202044200352, which is valid for 3 years. From 2020 to 2022, the company enjoys thepreferential corporate income tax of high-tech enterprises, the corporate income tax is paid at therate of 15.00%.
(3) According to the Document GKHZ (2020) No. 46, Shenzhen Shen Nan Dian EnvironmentProtection Co., Ltd has obtained the National High-tech Enterprise Certification no.GR202044200405, which is valid for 3 years. From 2020 to 2022, the company enjoys thepreferential corporate income tax of high-tech enterprises, the corporate income tax is paid at therate of 15.00%.
(2) Value-added tax preferential policies:
| Tax | Name of the company | Relevant regulation and policies basis | Approval institution | Approval documents | Exemption range | Period of validity |
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| Tax | Name of the company | Relevant regulation and policies basis | Approval institution | Approval documents | Exemption range | Period of validity |
| VAT | Environment Protection Company | Notice on "contents of products with comprehensive utilization of resources and value-added tax privilege of labor service" (CS No. [2015] 78) | Shenzhen Provincial Office, SAT (Qianhai SAT) | SQSST[2018]No.: 18302 | Resource comprehensive utilization of VAT refund | 31 Aug. 2018 to 31 July 2022 |
| VAT | Engineering Company | Administrative Measures on VAT Exemption for Cross-boarder Taxable Acts with VAT Replaced by Business Tax | Shenzhen Provincial Office, SAT (Qianhai SAT) | VAT Exemption for Cross-boarder Taxable Acts |
V. Annotation of the items in consolidate financial statement
(1) Monetary fund
| Item | Ending Balance | Balance at the end of last year |
| Cash on hand | 35,963.95 | 101,163.11 |
| Bank savings | 456,715,650.80 | 397,000,109.10 |
| Other monetary fund | 232,853,018.84 | 367,500,000.00 |
| Total | 689,604,633.59 | 764,601,272.21 |
| Including: total amount saving aboard | 51,205,621.70 | 50,810,349.72 |
No monetary funds that are restricted to use due to mortgage, pledge or freezing, and are placedoverseas and the repatriation of funds are restricted.
(2) Trading financial assets
| Item | Ending Balance | Balance at the end of last year |
| Financial assets measured by fair value and with variation reckoned into current gains/losses | 560,000,726.39 | |
| Including: Debt instrument investment | ||
| Equity instrument investment | ||
| Derivative financial assets | ||
| Other | 560,000,726.39 | |
| Designated as financial assets measured by fair value and with variation reckoned into current gains/losses | ||
| Including: Debt instrument investment | ||
| Equity instrument investment | 72,873,680.00 | |
| Total | 632,874,406.39 |
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(3) Account receivable
1. Age analysis
| Account age | Ending Balance | Balance at the end of last year |
| Within one year | 73,610,161.02 | 85,293,052.88 |
| Over 3 years | 5,558,673.67 | 5,558,673.67 |
| Subtotal | 79,168,834.69 | 90,851,726.55 |
| Less: Bad debt provision | 5,558,673.67 | 5,558,673.67 |
| Total | 73,610,161.02 | 85,293,052.88 |
2. According to accrual method for bad debts
| 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 | 7.02 | 5,558,673.67 | 100.00 | |
| Provision for bad debts by combination of risk characteristics | 73,610,161.02 | 92.98 | 73,610,161.02 | ||
| Including: risk-free portfolio | 73,610,161.02 | 92.98 | 73,610,161.02 | ||
| Total | 79,168,834.69 | 100.00 | 5,558,673.67 | 7.02 | 73,610,161.02 |
| Category | Balance at the end of last year | ||||
| 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 combination of risk characteristics | 85,293,052.88 | 93.88 | 85,293,052.88 | ||
| Including: risk-free 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 |
With single provision for bad debts:
第69页
| Name | Ending Balance | |||
| Book balance | 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 | Balance at the end of last year | Current amount changed | Ending Balance | ||
| Accrual | Collected or switch back | Other | |||
| Accounts receivable with single provision for bad debts | 5,558,673.67 | 5,558,673.67 | |||
| Total | 5,558,673.67 | 5,558,673.67 | |||
4. Top 5 receivables at ending balance by arrears party
Total period-end balance of top five receivables by arrears party amounting to 77,320,103.02Yuan, takes 97.66% of the total account receivable at period-end, bad debt provision accrualcorrespondingly at period-end amounting as 4,611,758.57 Yuan
(4)Account paid in advance
1.Account paid in advance classified according to age
| Age | Ending Balance | Balance at the end of last year | ||
| Book balance | Proportion (%) | Book balance | Proportion (%) | |
| Within 1year | 63,880,339.98 | 99.17 | 22,552,426.03 | 76.33 |
| 1-2 years | 441,309.74 | 0.69 | 6,883,175.38 | 23.30 |
| 2-3 years | 15,600.00 | 0.05 | ||
| Over 3 years | 93,586.94 | 0.14 | 93,586.94 | 0.32 |
| Total | 64,415,236.66 | 100.00 | 29,544,788.35 | 100.00 |
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2. Top five accounts paid in advance at period-end balance listed by object
The aggregate amount of the top five ending balance of account paid in advance collected by thearrears is 61,564,847.72 Yuan, accounting for 95.57% of the total number of account in endingbalance of paid in advance
(5) Other account receivable
| Item | Ending Balance | Balance at the end of last year |
| Interest receivable | ||
| Dividends receivable | ||
| Other account receivable | 25,841,206.66 | 31,027,754.36 |
| Total | 25,841,206.66 | 31,027,754.36 |
1. Other account receivable
(1) Age analysis
| Age | Ending Balance | Balance at the end of last year |
| Within 1year | 3,823,549.28 | 8,721,096.29 |
| 1-2 years | 553,190.98 | 958,772.47 |
| 2-3 years | 1,765,816.10 | 1,179,854.47 |
| Over 3 years | 51,739,037.91 | 52,208,418.74 |
| Subtotal | 57,881,594.27 | 63,068,141.97 |
| Less: Bad debt provision | 32,040,387.61 | 32,040,387.61 |
| Total | 25,841,206.66 | 31,027,754.36 |
(2) By category
| Category | Ending Balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| Accounts receivable with single provision for bad debts | 32,676,135.85 | 56.45 | 32,040,387.61 | 98.05 | 635,748.24 |
| Provision for bad debts by portfolio of credit risk | 25,205,458.42 | 43.55 | 25,205,458.42 | ||
| Including: risk-free portfolio | 25,205,458.42 | 43.55 | 25,205,458.42 | ||
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| Category | Ending Balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| Total | 57,881,594.27 | 100.00 | 32,040,387.61 | 55.36 | 25,841,206.66 |
| Category | Balance at the end of last year | ||||
| 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 | 30,334,238.58 |
| Total | 63,068,141.97 | 100.00 | 32,040,387.61 | 50.80 | 31,027,754.36 |
With single provision for bad debts:
| Name | Ending Balance | |||
| Book balance | Bad debt provision | Accrual proportion (%) | Causes | |
| Huiyang Kangtai Industrial Company | 14,311,626.70 | 14,311,626.70 | 100.00 | Unable to recover |
| Individual income tax | 2,470,039.76 | 2,470,039.76 | 100.00 | Unable to recover |
| Dormitory amount receivable | 2,083,698.16 | 1,736,004.16 | 83.31 | Unable to recover |
| Deposit receivable | 1,601,029.19 | 1,312,974.95 | 82.01 | Unable to recover |
| Personal receivables | 7,498,997.87 | 7,498,997.87 | 100.00 | Unable to recover |
| Shandong Jinan Generation Equipment Plant | 3,560,000.00 | 3,560,000.00 | 100.00 | Unable to recover |
| Zuohao Clothing (Shenzhen) Co., Ltd. | 43,068.31 | 43,068.31 | 100.00 | Unable to recover |
| Shenzhen Guanhua Printing and Dyeing Co., Ltd. | 53,591.75 | 53,591.75 | 100.00 | Unable to recover |
| Shenzhen Nanhua Printing and Dyeing Co., Ltd. | 41,407.01 | 41,407.01 | 100.00 | Unable to recover |
| Huizhou Bangde Agricultural Ecological Organic Fertilizer Co., Ltd. | 25,788.00 | 25,788.00 | 100.00 | Unable to recover |
| Huizhou Lvhuan Fertilizer Co., Ltd. | 44,112.1 | 44,112.1 | 100.00 | Unable to recover |
| Other | 942,777.00 | 942,777.00 | 100.00 | Unable to recover |
| Total | 32,676,135.85 | 32,040,387.61 | 98.05 | |
(3)Accrual of bad debt provision
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| 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 | 207,967.17 | 31,832,420.44 | 32,040,387.61 | |
| Balance at year-begin of the period | ||||
| ——Turn to phase II | ||||
| ——Turn to phase III | -207,967.17 | 207,967.17 | ||
| ——Return to Phase II | ||||
| ——Return to Phase I | ||||
| Current accrual | ||||
| Current switch back | ||||
| Rewrite in the period | ||||
| Write-off in the period | ||||
| Other changes | ||||
| Ending Balance | 32,040,387.61 | 32,040,387.61 |
(3) By nature
| Nature | Ending book balance | Book balance at last year-end |
| Deposit and security deposit | 8,213,574.51 | 5,130,967.25 |
| Reserve fund | 610,723.06 | 566,951.40 |
| Withholding payment | 9,182,463.86 | 9,151,898.54 |
| Current payment | 24,404,083.76 | 18,066,774.22 |
| other | 730,247.64 | 8,776,977.75 |
| Accounts receivable of Huidong Server | 14,740,501.44 | 21,374,572.81 |
| Subtotal | 57,881,594.27 | 63,068,141.97 |
| Less: Bad debt provision | 32,040,387.61 | 32,040,387.61 |
| Total | 25,841,206.66 | 31,027,754.36 |
(4) Top five other account receivables at period-end balance listed by arrears party
The total amount of the top five other receivables at the end of the period aggregated by the owing
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party was 39,367,445.32 Yuan, accounting for 68.01% of the total balance of other receivables atthe end of the period.
(6) Inventory
1. Classification
| Item | Ending Balance | Balance at the end of last year | ||||
| Book balance | Inventory falling price reserves | Book value | Book balance | Inventory falling price reserves | Book value | |
| Raw materials | 149,489,121.27 | 61,358,046.54 | 88,131,074.73 | 149,653,114.11 | 49,407,585.05 | 100,245,529.06 |
| Low-value consumables | 369,916.40 | 369,916.40 | ||||
| Total | 149,859,037.67 | 61,358,046.54 | 88,500,991.13 | 149,653,114.11 | 49,407,585.05 | 100,245,529.06 |
2. Inventory falling price reserves
| Item | Balance at the end of last year | Current increased | Current decreased | Ending Balance | ||
| Accrual | Other | Switch-back or write-off | Other (note) | |||
| Raw materials | 49,407,585.05 | 11,958,247.40 | 7,785.91 | 61,358,046.54 | ||
| Total | 49,407,585.05 | 11,958,247.40 | 7,785.91 | 61,358,046.54 | ||
(7) Contractual assets
| Item | Ending Balance | Balance at year-begin |
| Operation and maintenance project settlement accounts receivable | 1,040,000.00 | 7,229,600.00 |
| Subtotal | 1,040,000.00 | 7,229,600.00 |
| Provision for impairment of contractual assets | ||
| Total | 1,040,000.00 | 7,229,600.00 |
(8) Other current assets
| Item | Ending Balance | Balance at the end of last year |
| VAT input tax deductible | 324,040,257.98 | 332,071,261.59 |
| Income tax paid in advance | 6,583,089.98 | 6,583,089.98 |
| Bank financial products | 575,655,558.24 | |
| Accrual interest of time deposit | 1,195,914.66 | 2,918,334.73 |
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| Item | Ending Balance | Balance at the end of last year |
| Other | 49,399.00 | 60,000.00 |
| Total | 331,868,661.62 | 917,288,244.54 |
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(9) Long-term equity investment
| The invested entity | Balance at the end 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 | 8,893,408.86 | -1,906,753.67 | 6,986,655.19 | ||||||||
| Total | 8,893,408.86 | -1,906,753.67 | 6,986,655.19 | ||||||||
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(10) Other equity instrument investment
1. Other equity instrument investment
| Item | Ending Balance | Balance at the end of last year |
| CPI Jiangxi Nuclear Power Company | 60,615,000.00 | 60,615,000.00 |
| Zhongsheng Technology (Jiangsu) Co., Ltd. | 140,000,000.00 | 21,000,000.00 |
| Shenzhen Petrochemical Products Bonded Trading Co., Ltd. - investment cost | 2,500,000.00 | 2,500,000.00 |
| Shenzhen Petrochemical Products Bonded Trading Co., Ltd. - change in fair value | -2,500,000.00 | -2,500,000.00 |
| Total | 200,615,000.00 | 81,615,000.00 |
2. Non trading equity instrument investment
| Item | Dividend income recognized in the current period | Accumulated gain | Accumulated loss | Retained earnings transferred from other comprehensive income | Designated as the investment measured at fair value and whose changes reckoned into other comprehensive income (explain reasons) | Reasons of retained earnings transferred from other comprehensive income |
| CPI Jiangxi Nuclear Power Company | 252,016.49 | intents to holding for a long-term | ||||
| Shenzhen Petrochemical Products Bonded Trading Co., Ltd. | -2,500,000.00 | intents to holding for a long-term | ||||
| Total | 252,016.49 | -2,500,000.00 |
(11) Investment real estate
1. Investment real estate measured at cost
| Item | House and building | Total |
| 1. Original book value | ||
| (1) Balance at the end of last year | 9,708,014.96 | 9,708,014.96 |
| (2) Current increased | ||
| (3) Current decreased | ||
| (4) Ending Balance | 9,708,014.96 | 9,708,014.96 |
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| Item | House and building | Total |
| 2. Accumulated depreciation and accumulated amortization | ||
| (1) Balance at the end of last year | 7,502,825.56 | 7,502,825.56 |
| (2) Current increased | 196,137.60 | 196,137.60 |
| (3) Current decreased | ||
| (4) Ending Balance | 7,698,963.16 | 7,698,963.16 |
| 3. Depreciation provision | ||
| (1) Balance at the end of last year | ||
| (2) Current increased | ||
| (3) Current decreased | ||
| (4) Ending Balance | ||
| 4. Book value | ||
| (1) Ending book value | 2,009,051.80 | 2,009,051.80 |
| (2) Book value of end of last year | 2,205,189.40 | 2,205,189.40 |
(12) Fixed assets
1. Fixed assets and disposal of fixed asset
| Item | Ending Balance | Balance at the end of last year |
| Fixed assets | 643,256,398.30 | 925,745,208.55 |
| Disposal of fixed assets | ||
| Total | 643,256,398.30 | 925,745,208.55 |
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2. Fixed assets
| Item | House and buildings | Machinery equipment | Transportation tools | Other | Total |
| 1. Original book value | |||||
| (1) Balance at the end of last year | 426,009,822.97 | 3,159,342,280.68 | 16,757,800.53 | 58,485,287.75 | 3,660,595,191.93 |
| (2) Current increased | 38,128,186.36 | 357,334.62 | 2,946,529.07 | 41,432,050.05 | |
| —Purchase | 44,778.76 | 357,334.62 | 1,436,783.36 | 1,838,896.74 | |
| Construction in progress transfer-in | 38,083,407.60 | 1,509,745.71 | 39,593,153.31 | ||
| (3) Current decreased | 6,100,000.00 | 2,233,430.00 | 117,980.00 | 8,451,410.00 | |
| —Disposal or scrapping | 6,100,000.00 | 2,233,430.00 | 117,980.00 | 8,451,410.00 | |
| ---Decrease in disposal of subsidiaries | |||||
| (4) Ending Balance | 426,009,822.97 | 3,191,370,467.04 | 14,881,705.15 | 61,313,836.82 | 3,693,575,831.98 |
| 2. Accumulated depreciation | |||||
| (1) Balance at the end of last year | 274,467,339.25 | 2,285,724,572.18 | 8,778,143.96 | 44,182,864.81 | 2,613,152,920.20 |
| (2) Current increased | 11,923,927.01 | 28,730,727.38 | 1,887,358.06 | 2,797,587.96 | 45,339,600.41 |
| —Accrual | 11,923,927.01 | 28,730,727.38 | 1,887,358.06 | 2,797,587.96 | 45,339,600.41 |
| (3) Current decreased | 5,490,000.00 | 1,987,020.00 | 106,182.00 | 7,583,202.00 | |
| —Disposal or scrapping | 5,490,000.00 | 1,987,020.00 | 106,182.00 | 7,583,202.00 | |
| —Decrease in disposal of subsidiaries | |||||
| (4) Ending Balance | 286,391,266.26 | 2,308,965,299.56 | 8,678,482.02 | 46,874,270.77 | 2,650,909,318.61 |
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| Item | House and buildings | Machinery equipment | Transportation tools | Other | Total |
| 3. Depreciation provision | |||||
| (1) Balance at the end of last year | 9,800,239.30 | 111,896,823.88 | 121,697,063.18 | ||
| (2) Current increased | 12,669,432.80 | 268,971,500.43 | 56,300.08 | 164,018.32 | 281,861,251.63 |
| —Accrual | 8,521,233.06 | 268,971,500.43 | 56,300.08 | 164,018.32 | 277,713,051.89 |
| —Other | 4,148,199.74 | 4,148,199.74 | |||
| (3) Current decreased | 4,148,199.74 | 4,148,199.74 | |||
| —Disposal or scrapping | |||||
| —Decrease in disposal of subsidiaries | |||||
| —Other | 4,148,199.74 | 4,148,199.74 | |||
| (4) Ending Balance | 22,469,672.10 | 376,720,124.57 | 56,300.08 | 164,018.32 | 399,410,115.07 |
| 4. Book value | |||||
| (1) Ending book value | 121,297,084.35 | 501,536,843.17 | 6,146,923.05 | 14,275,547.73 | 643,256,398.30 |
| (2) Book value of end of last year | 141,742,244.42 | 761,720,884.62 | 7,979,656.57 | 14,302,422.94 | 925,745,208.55 |
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3. Idle fixed assets temporary
| Item | Original book value | Accumulated depreciation | Depreciation provision | Book value | Note |
| Housing & buildings | 127,893,412.10 | 98,886,783.17 | 19,801,856.52 | 9,204,772.41 | |
| Machinery equipment | 569,764,445.49 | 483,599,824.01 | 69,796,231.48 | 16,368,390.00 | |
| Total | 697,657,857.59 | 582,486,607.18 | 89,598,088.00 | 25,573,162.41 |
4. Fixed assets without property rights certificate
| Item | Book value | Reasons for failing to complete the property rights certificate |
| Circulating Water Pump House | 1,111,441.10 | Procedures uncompleted |
| Cooling Tower | 673,259.25 | Procedures uncompleted |
| Complex Building | 443,246.19 | Procedures uncompleted |
| Comprehensive building canteen | 247,224.51 | Procedures uncompleted |
| Chemical water treatment workshop | 232,960.00 | Procedures uncompleted |
| Main entrance mail room | 77,237.04 | Procedures uncompleted |
| Total | 2,785,368.09 |
(13) Construction in progress
1. Construction in progress and Engineering materials
| Item | Ending Balance | Balance at the end of last year |
| Construction in progress | 6,088,768.51 | 42,782,712.98 |
| Engineering materials | ||
| Total | 6,088,768.51 | 42,782,712.98 |
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2. Construction in progress
| Item | Ending Balance | Balance at the end of last year | ||||
| Book balance | Depreciation provision | Book value | Book balance | Depreciation provision | Book value | |
| Cogeneration | 60,307,712.44 | 58,610,372.06 | 1,697,340.38 | 60,112,152.46 | 22,273,910.43 | 37,838,242.03 |
| Oil to Gas Works | 13,230,574.53 | 13,230,574.53 | 13,230,574.53 | 13,230,574.53 | - | |
| Technical innovation | 5,862,678.13 | 1,471,250.00 | 4,391,428.13 | 4,944,470.95 | 4,944,470.95 | |
| Total | 79,400,965.10 | 73,312,196.59 | 6,088,768.51 | 78,287,197.94 | 35,504,484.96 | 42,782,712.98 |
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3. Changes of significant projects in construction in the period
| Item | Budget | Balance at the end 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 | 60,112,152.46 | 195,559.98 | 60,307,712.44 | 100.51 | 100.00 | 6,476,185.46 | Self-raised and borrowing | ||||
| Oil to Gas Works | 74,000,000.00 | 13,230,574.53 | 13,230,574.53 | 17.88 | 17.88 | Self-raised | ||||||
| Technical innovation | 4,944,470.95 | 42,392,983.90 | 39,593,153.31 | 1,881,623.41 | 5,862,678.13 | Not applicable | Not applicable | Self-raised | ||||
| Total | 78,287,197.94 | 42,588,543.88 | 39,593,153.31 | 1,881,623.41 | 79,400,965.10 | 6,476,185.46 |
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4. Accrual of impairment provision for Construction in progress in the period
| Item | Withdrawal amount for the current period | Reason for provision |
| Cogeneration | 36,336,461.63 | No value for use |
| Technical innovation | 1,471,250.00 | Technological advances |
| Total | 37,807,711.63 |
(14) Intangible assets
1. Intangible assets
| Item | Land use right | Software | Total |
| 1. Original book value | |||
| (1) Balance at the end of last year | 60,813,994.76 | 3,791,219.34 | 64,605,214.10 |
| (2) Current increased | 153,273.59 | 153,273.59 | |
| —Purchase | 153,273.59 | 153,273.59 | |
| (3) Current decreased | 57,735.85 | 57,735.85 | |
| —Disposal | 57,735.85 | 57,735.85 | |
| —Decrease in disposal of subsidiaries | |||
| (4) Ending Balance | 60,813,994.76 | 3,886,757.08 | 64,700,751.84 |
| 2. Accumulated amortization | |||
| (1) Balance at the end of last year | 40,020,625.95 | 3,458,977.91 | 43,479,603.86 |
| (2) Current increased | 622,629.60 | 132,611.52 | 755,241.12 |
| —Accrual | 622,629.60 | 132,611.52 | 755,241.12 |
| (3) Current decreased | |||
| —Disposal | |||
| —Decrease in disposal of subsidiaries | |||
| (4) Ending Balance | 40,643,255.55 | 3,591,589.43 | 44,234,844.98 |
| 3. Depreciation provision | |||
| (1) Balance at the end of last year | |||
| (2) Current increased | |||
| —Accrual | |||
| (3) Current decreased | |||
| —Disposal | |||
| (4) Ending Balance |
第84页
| Item | Land use right | Software | Total |
| 4. Book value | |||
| (1) Ending book value | 20,170,739.21 | 295,167.65 | 20,465,906.86 |
| (2) Book value of end of last year | 20,793,368.81 | 332,241.43 | 21,125,610.24 |
2. Land use rights without property rights certificate
| Item | Book value | Reasons for failing to complete the property rights certificate |
| Land use right of the wharf and pipe gallery | 503,012.29 | Property rights certificate is undergoing |
| Total | 503,012.29 |
(15) Long-term deferred expenses
| Item | Balance at the end of last year | Current increased | Amortized in the Period | Other decrease | Ending Balance |
| Decoration amount | 1,027,508.94 | 1,130,571.96 | 441,620.60 | 1,716,460.30 | |
| Total | 1,027,508.94 | 1,130,571.96 | 441,620.60 | 1,716,460.30 |
(16) Deferred income tax assets and deferred income tax liabilities
1. Deferred income tax assets without offsetting
| Item | Ending Balance | Balance at the end of last year | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Bad debt provision | 1,937,145.52 | 484,286.38 | 6,352,158.77 | 1,581,049.69 |
| Changes in fair value of other equity instrument investments | 2,500,000.00 | 625,000.00 | 2,500,000.00 | 625,000.00 |
| Total | 4,437,145.52 | 1,109,286.38 | 8,852,158.77 | 2,206,049.69 |
2. Details of unrecognized deferred income tax assets
| Item | Ending Balance | Balance at the end of last year |
| Deductible temporary difference | 585,949,690.28 | 257,908,575.87 |
| Deductible loss | 346,683,937.56 | 150,290,572.14 |
| Total | 932,633,627.84 | 408,199,148.01 |
第85页
3. Deductible losses of un-recognized deferred income tax assets expired on the followed year
| Year | Ending Balance | Balance at the end of last year | Note |
| 2021 | 8,844,687.56 | ||
| 2022 | 18,744,225.08 | 18,744,225.08 | |
| 2023 | 37,902,892.36 | 41,640,520.44 | |
| 2024 | 5,350,767.06 | 11,385,937.72 | |
| 2025 | 3,472,561.77 | 69,675,201.34 | |
| 2026 | 169,951,549.63 | ||
| 2027 | |||
| 2028 | |||
| 2029 | 6,035,170.66 | ||
| 2030 | 66,686,335.03 | ||
| 2031 | 38,540,435.97 | ||
| Total | 346,683,937.56 | 150,290,572.14 |
(17) Short-term loans
1. Classification
| Item | Ending Balance | Balance at the end of last year |
| Credit loans | 856,861,840.80 | 672,033,285.00 |
| Accrued interest | 1,582,322.45 | 3,495,573.48 |
| Total | 858,444,163.25 | 675,528,858.48 |
(18) Note payable
| Species | Ending Balance | Balance at the end of last year |
| Bank acceptance | 135,025,883.27 | 30,467,345.48 |
| Total | 135,025,883.27 | 30,467,345.48 |
(19) Account payable
1. Account payable
第86页
| Item | Ending Balance | Balance at the end of last year |
| Materials | 2,325,920.64 | 1,485,870.91 |
| Electricity | 1,078,066.07 | 3,198,432.35 |
| Labor | 3,299,480.00 | 4,622,000.00 |
| Total | 6,703,466.71 | 9,306,303.26 |
(20) Wages payable
1. Wages payable
| Item | Balance at the end of last year | Current increased | Current Decreased | Ending Balance |
| Short-term remuneration | 68,988,399.03 | 102,395,713.14 | 130,420,679.15 | 40,963,433.02 |
| Post-employment welfare-defined contribution plans | 438,504.94 | 16,562,029.92 | 16,430,946.92 | 569,587.94 |
| Severance Pay | ||||
| Other welfare due within one year | ||||
| Total | 69,426,903.97 | 118,957,743.06 | 146,851,626.07 | 41,533,020.96 |
2. Short-term remuneration
| Item | Balance at the end of last year | Current increased | Current Decreased | Ending Balance |
| (1) Wages , bonuses, allowances and subsidies | 68,484,174.37 | 84,655,768.62 | 112,628,541.74 | 40,511,401.25 |
| (2) Welfare for workers and staff | 129,361.00 | 635,834.00 | 703,118.00 | 62,077.00 |
| (3) Social insurance | 5,688,827.21 | 5,688,827.21 | ||
| Including: Medical insurance | 5,421,050.30 | 5,421,050.30 | ||
| Work injury insurance | 142,297.81 | 142,297.81 | ||
| Maternity insurance | 125,479.10 | 125,479.10 | ||
| (4) Housing accumulation fund | 9,271,438.14 | 9,271,438.14 | ||
| (5) Labor union expenditure and personnel education expense | 374,863.66 | 1,876,869.17 | 1,861,778.06 | 389,954.77 |
| (6) Short-term paid absence | ||||
| (7) Short-term profit sharing plan | ||||
| (8) Other | 266,976.00 | 266,976.00 | ||
| Total | 68,988,399.03 | 102,395,713.14 | 130,420,679.15 | 40,963,433.02 |
第87页
3. Defined contribution plans(DCP)
| Item | Balance at the end of last year | Current increased | Current Decreased | Ending Balance |
| Basic endowment insurance | 9,581,419.94 | 9,581,419.94 | ||
| Unemployment insurance | 119,809.98 | 119,809.98 | ||
| Enterprise annuity | 438,504.94 | 6,834,800.00 | 6,703,717.00 | 569,587.94 |
| Other | 26,000.00 | 26,000.00 | ||
| Total | 438,504.94 | 16,562,029.92 | 16,430,946.92 | 569,587.94 |
(21) Taxes payable
| Item | Ending Balance | Balance at the end of last year |
| VAT | 706,615.96 | 3,086,053.57 |
| Environmental tax | 62,437.77 | 32,646.98 |
| Corporate income tax | 621,938.34 | |
| Personal Income Tax | 1,402,165.48 | 2,726,195.98 |
| Urban maintenance and construction tax | 43,868.84 | 44,879.53 |
| Local education surcharge | 16,902.90 | 16,824.46 |
| Education surcharge | 25,354.34 | 25,236.71 |
| Property tax | 1,524,487.98 | 996,166.86 |
| Stamp duty | 63,247.50 | 33,443.10 |
| Other | 300,759.12 | 42,872.73 |
| Total | 4,145,839.89 | 7,626,258.26 |
(22) Other account payable
| Item | Ending Balance | Balance at the end of last year |
| Interest payable | ||
| Other account payable | 62,678,254.02 | 27,020,944.95 |
| Total | 62,678,254.02 | 27,020,944.95 |
1. Other account payable
(1) Other payable by nature
第88页
| Item | Ending Balance | Balance at the end of last year |
| Engineering funds | 4,991,246.36 | 7,759,695.06 |
| Quality assurance | 6,308,254.95 | 6,675,270.29 |
| Accrued expenses | 8,537,422.41 | 6,625,316.75 |
| Material payment | 30,721,390.14 | 147,487.65 |
| Equipment fund | 3,215,000.00 | |
| Other | 12,119,940.16 | 2,598,175.20 |
| Total | 62,678,254.02 | 27,020,944.95 |
(2) Top five other payable
The ending balance of the top five other payable aggregated by the arrears party is 41,532,468.19Yuan, accounting for 66.26% of the total ending balance of other payable.
(23) Accrual liability
| Item | Balance at the end of last year | Current increased | Current Decreased | Ending Balance | Reason |
| Pending litigation | 19,923,508.28 | 4,923,508.28 | 15,000,000.00 | ||
| Other | |||||
| Total | 19,923,508.28 | 4,923,508.28 | 15,000,000.00 |
Note: On 29 November 2013, Shenzhen Server and Jiahua Building Products (Shenzhen) Co., Ltd. (JiahuaBuilding) signed a supplementary term aiming at equity transfer over equity attribution and division of YapojiaoDock, which belongs to Shenzhen Server, Huidong Server, and Huidong Nianshan Town Government as well as itssubordinate Nianshan Group. In order to solve this remaining historic problem, Shenzhen Server saved12,500,000.00 Yuan in condominium deposit account as guarantee. In addition, Server pledged its 20% of equityholding from Huidong Server to Jiahua Architecture with pledge duration of 2 years. The amount of collateral onloans could not exceed 15,000,000.00 Yuan. Relevant losses with the event concerned predicted amounting to 27,500,000.00 Yuan by the Group, the balance at the end of 2019 was 26,646,056.28 Yuan.
On November 12, 2020, Huidong Server and other related parties reached a preliminary settlement agreement onthe land disputes in the estimated liabilities. According to this, accrual liability of 6,584,816.78 Yuan was reversedby Shenzhen Server. In 2020, Shenzhen Server to bear the lawyer’s and other expenses in accordance with theagreed proportion , that is 137,731.22 Yuan, the accrual liability has 6,722,548.00 Yuan declined in total in the
第89页
Period. Balance of 19,923,508.28 Yuan refers to the repayment obligations that are likely to occur before thecompletion of the above matters.
On November 12, 2020, Huizhou Commercial Construction and Development Corporation and Huidong ServerHarbor Comprehensive Development Company signed the "Creditor's Rights Assignment Agreement", and thereconciliation record was executed by the People's Court of Huidong County, which partially solved the issues ofownership and division of rights and interests of Yapojiao Wharf. On January 20, 2021, Shenzhen Server received5,000,000.00 Yuan returned from the joint account. Accordingly, Shenzhen Server reverted its estimated liabilitiesof 4,573,508.28 Yuan. In 2021, Shenzhen Server bore the lawyer and other expenses of 350,000 Yuan for the issuesin accordance with the agreed proportion, the estimated liabilities totally reduced by 4,923,508.28 Yuan in currentperiod. The balance of 15,000,000.00 Yuan is a repayment obligation likely to occur before the completion of theabove matters.
(24) Deferred income
| Item | Balance at the end of last year | Current increased | Current Decreased | Ending Balance | Reason |
| Government subsidy | 93,780,657.93 | 670,000.00 | 6,370,687.84 | 88,079,970.09 | |
| Total | 93,780,657.93 | 670,000.00 | 6,370,687.84 | 88,079,970.09 |
Items with government subsidy involved:
| Liability | Balance at the end 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 | 24,648,454.68 | 544,168.22 | 24,104,286.46 | Assets related | ||
| Government subsidies for information construction projects | 25,490.12 | 25,490.12 | Assets related | |||
| Subsidies for the Motor Energy Efficiency Improvement Funding Scheme | 367,200.00 | 34,560.00 | 332,640.00 | Assets related | ||
| Support fund of recycling economy for sludge drying | 6,804,271.03 | 647,002.92 | 6,157,268.11 | Assets related |
第90页
| Treasury subsidies for sludge drying | 2,571,250.00 | 255,000.00 | 2,316,250.00 | Assets related | ||
| Special funds for energy conservation and emission reduction | 570,185.98 | 114,037.32 | 456,148.66 | Assets related | ||
| Subsidy for quality promotion of the air environment in Shenzhen (note 1) | 58,793,806.12 | 4,731,818.16 | 54,061,987.96 | Assets related | ||
| 2021 Technical Transformation Project | 670,000.00 | 18,611.10 | 651,388.90 | Assets related | ||
| Total | 93,780,657.93 | 670,000.00 | 6,370,687.84 | 88,079,970.09 |
(25) Other non-current liabilities
| Item | Ending Balance | Balance at the end of last year |
| Amounts payable to other shareholders | 50,310.78 | 7,627.86 |
| Total | 50,310.78 | 7,627.86 |
(26) Share capital
| Item | Balance at the end 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 | |||||
(27) Capital reserve
| Item | Balance at the end 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 |
第91页
(28) Other comprehensive income
| Item | Balance at the end 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 | |||||||
第92页
(29) Surplus reserve
| Item | Balance at the end 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 |
(30) Retained profit
| Item | Current amount | Last-period amount |
| Retained profit of last year before adjusted | 758,799,931.94 | 706,830,892.54 |
| Total retained profit adjusted (increased with +, decreased with -) | ||
| Retained profit at beginning of the year after adjusted | 758,799,931.94 | 706,830,892.54 |
| Add: net profit attributable to shareholders of parent company | -439,448,712.13 | 64,024,291.32 |
| Less: withdrawal of statutory surplus reserve | ||
| Common Stock dividend payable | 12,055,251.92 | |
| Retained profit at period-end | 319,351,219.81 | 758,799,931.94 |
(31) Operating income and operating cost
| Item | Current amount | Last-period amount | ||
| Income | Cost | Income | Cost | |
| Main business | 755,956,762.36 | 849,690,713.43 | 982,484,377.16 | 794,326,472.79 |
| Other business | 1,218,981.05 | 569,945.97 | 2,769,454.42 | 197,337.60 |
| Total | 757,175,743.41 | 850,260,659.40 | 985,253,831.58 | 794,523,810.39 |
(32) Tax and surcharge
| Item | Current amount | Last-period amount |
| Property tax | 2,220,037.22 | 2,149,484.33 |
| Travel tax | 16,916.56 | 15,266.56 |
| Land holding tax | 308,017.20 | 785,747.88 |
| Stamp duty | 701,797.80 | 625,730.48 |
第93页
| Item | Current amount | Last-period amount |
| Urban maintenance and construction tax | 1,168,205.83 | 2,507,916.30 |
| Education surcharge | 572,120.09 | 1,413,635.81 |
| Local education surcharge | 381,413.39 | 935,569.77 |
| Environmental protection tax | 912,640.21 | 112,506.92 |
| Total | 6,281,148.30 | 8,545,858.05 |
(33) Sales expense
| Item | Current amount | Last-period amount |
| Sludge treatment costs | 208,163.44 | 3,848,884.38 |
| Salary, welfare and social insurance | 420,777.50 | 655,091.29 |
| Social expenses | 100,232.70 | 233,663.28 |
| Agency engagement fee | 32,737.16 | 68,056.60 |
| Property insurance | 48,684.42 | 55,981.53 |
| Labor insurance fee | 19,687.32 | 23,561.59 |
| Inspection charges | 2,358.49 | 21,683.02 |
| Rental fee | 10,800.00 | 18,000.00 |
| Fleet cost | 17,824.25 | 15,284.63 |
| Housing fund | 14,745.72 | 14,746.52 |
| Food expenses | 14,700.00 | 11,900.00 |
| Travel expenses | 22,050.79 | 7,662.50 |
| Communication expenses | 15,900.00 | 5,400.00 |
| Total | 928,661.79 | 4,979,915.34 |
(34) Administration expense
| Item | Current amount | Last-period amount |
| Wages | 52,721,563.61 | 62,913,189.30 |
| Rental fee | 6,461,642.19 | 7,243,936.24 |
| Depreciation | 10,879,329.80 | 6,453,519.80 |
| Social expenses | 2,611,353.46 | 2,983,408.61 |
| Food expenses | 3,730,529.14 | 3,217,453.47 |
第94页
| Item | Current amount | Last-period amount |
| Agency fee | 6,597,046.69 | 3,766,552.89 |
| Repairing cost | 382,708.01 | 1,191,409.25 |
| Eco fee | 1,408,486.56 | 244,376.90 |
| Fleet cost | 2,892,135.99 | 4,202,313.60 |
| Office fee | 591,516.35 | 1,369,300.09 |
| Board charges | 1,033,954.26 | 2,357,575.81 |
| Communication expenses | 1,235,859.50 | 1,201,372.17 |
| Amortization of intangible assets | 139,202.16 | 292,083.81 |
| Corporate culture fee | 312,381.43 | 1,175,121.33 |
| Property management fee | 1,110,962.08 | 989,244.87 |
| Business travel expenses | 470,531.57 | 710,951.65 |
| Fee for stock certificate | 642,314.97 | 676,422.39 |
| Other | 10,065,408.92 | 10,629,992.91 |
| Total | 103,286,926.69 | 111,618,225.09 |
(35) R&D expenses
| Item | Current amount | Last-period amount |
| Employee's salary | 20,409,064.48 | 8,242,704.84 |
| Depreciation | 353,385.65 | 163,768.32 |
| Amortization of intangible assets | 84,409.42 | |
| Patent fee | 24,860.38 | |
| Repair fee | 146,402.47 | |
| Total | 20,933,712.98 | 8,490,882.58 |
(36) Financial expense
| Item | Current amount | Last-period amount |
| Interest expenses | 30,629,953.77 | 32,014,803.26 |
| Less: capitalized interest | ||
| Expenses interest | 30,629,953.77 | 32,014,803.26 |
| Less: interest income | 15,728,363.74 | 32,660,554.45 |
| Exchange loss (gains is listed with ”-”) | 112,793.73 | 407,513.25 |
第95页
| Item | Current amount | Last-period amount |
| Other | 198,353.91 | 171,579.98 |
| Total | 15,212,737.67 | -66,657.96 |
(37) Other Income
| Item | Current amount | Last-period amount |
| Government subsidies | 7,074,336.60 | 15,117,534.15 |
| Debt restructuring income | 7,593,783.90 | |
| Total | 7,074,336.60 | 22,711,318.05 |
Government subsidies included in other income
| Item | Current amount | Last-period amount | Asset related / income related |
| Subsidy for low-nitrogen transformation | 544,168.22 | 516,675.96 | 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 | 4,731,818.16 | Asset related |
| Special funds for energy conservation and emission reduction | 114,037.32 | 114,037.32 | Asset related |
| Information construction | 25,490.12 | 61,176.48 | Asset related |
| Funded of energy efficiency improvement for electric machine | 34,560.00 | 34,560.00 | Asset related |
| 2021 Technical Transformation Subsidy | 18,611.10 | Asset related | |
| Individual tax refund | 195,684.76 | 375,369.20 | Income related |
| Enterprise unemployment insurance premium refund | 4,176,211.18 | Income related | |
| VAT rebates | 1,283,570.70 | Income related | |
| Employment and unemployment monitoring subsidy | 1,000.00 | Income related | |
| Reward to encouraging small and medium-sized enterprise to growth as a scale-sized company | 27,816.00 | Income related | |
| Supporting funds of office occupancy for listed companies | 1,822,300.00 | Income related | |
| Special fund for the development of independent innovation industry | 100,000.00 | 500,000.00 | Income related |
| Qianhai Epidemic Prevention Support Special Fund | 448,791.00 | Income related | |
| Subsidy of further stable growth | 100,000.00 | Income related | |
| Job stabilization subsidy | 7,964.00 | 21,687.31 | Income related |
第96页
| Item | Current amount | Last-period amount | Asset related / income related |
| Preferential refund of education fees for comprehensive utilization of resources products and labor | 517.92 | Income related | |
| National High-tech Enterprise Multiplication Plan | 400,000.00 | Income related | |
| Total | 7,074,336.60 | 15,117,534.15 |
(38) Investment income
| Item | Current amount | Last-period amount |
| Long-term equity investment income by equity | -1,906,753.67 | -5,725,794.17 |
| Investment income from disposal of long-term equity investments | 33,534,881.55 | |
| Investment income during the holding period of Trading financial assets | 47,635,822.62 | |
| Dividend income obtained during the holding period of other equity instrument investments | 252,016.49 | |
| Total | 45,981,085.44 | 27,809,087.38 |
(39) Assets impairment loss
| Item | Current amount | Last-period amount |
| Loss of inventory fall | -11,958,247.40 | -7,399,234.51 |
| Fixed asset impairment loss | -277,713,051.89 | -14,045,534.44 |
| Construction in progress impairment loss | -37,807,711.63 | -22,273,910.43 |
| Total | -327,479,010.92 | -43,718,679.38 |
(40) 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 | 974,699.74 | -1,109,128.91 | 974,699.74 |
| Total | 974,699.74 | -1,109,128.91 | 974,699.74 |
(41) Non-operating revenue
第97页
| Item | Current amount | Last-period amount | Amount reckoned into non-recurring gains/losses of the Period |
| Reversal of accrual liabilities | 5,000,000.00 | 6,584,816.78 | 5,000,000.00 |
| Other | 261,868.99 | 500.00 | 261,868.99 |
| Total | 5,261,868.99 | 6,585,316.78 | 5,261,868.99 |
(42) Non-operating expenditure
| 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 | 188,716.00 | 34,990.00 | 188,716.00 |
| Other | 49,500.00 | 108,729.62 | 49,500.00 |
| Total | 248,216.00 | 153,719.62 | 248,216.00 |
(43) Income tax expense
1. Income tax expense
| Item | Current amount | Last-period amount |
| Current income tax | 140,503.27 | 1,361,203.90 |
| Deferred income tax | 1,096,763.31 | |
| Total | 1,237,266.58 | 1,361,203.90 |
2. Adjustment on accounting profit and income tax expenses
| Item | Current amount |
| Total profit | -508,163,339.57 |
| Income tax measured by statutory/applicable tax rate | -76,224,500.94 |
| Impact on subsidiary with different rates adaption | -36,453,082.03 |
| Adjusted the previous income tax | 140,479.58 |
| Impact on cost, expenses and losses that unable to deducted | 1,131,302.13 |
| Effect of deductible losses of deferred tax assets unconfirmed at the earlier stage of use | -25,435,122.20 |
| Impact on deductible temporary differences or losses deductible which was un-recognized as deferred income tax assets | 139,895,044.18 |
| Changes in deferred tax assets/liabilities at the beginning of the period due to tax rate adjustments | 1,096,763.31 |
第98页
| Item | Current amount |
| Impact of R&D Expenses Plus Deduction | -2,913,617.45 |
| Income tax expenses | 1,237,266.58 |
(44) Earnings per share
1. Basic earnings per share
Basic earnings per share is calculated by dividing the consolidated net profit attributable toordinary shareholders of the parent company by the weighted average number of ordinary sharesissued by the company:
| Item | Current amount | Last-period amount |
| Consolidated net profit attributable to ordinary shareholders of the parent company | -439,448,712.13 | 64,024,291.32 |
| Weighted average number of common shares issued by the company | 602,762,596.00 | 602,762,596.00 |
| Consolidated net profit attributable to ordinary shareholders of the parent company | -0.7291 | 0.1062 |
2. Diluted earnings per share
| Item | Current amount | Last-period amount |
| Consolidated net profit attributable to ordinary shareholders of the parent company (diluted) | -439,448,712.13 | 64,024,291.32 |
| Weighted average number of common shares issued by the company (diluted) | 602,762,596.00 | 602,762,596.00 |
| Diluted earnings per share | -0.7291 | 0.1062 |
(45) Cash flow statement
1. Cash received with other operating activities concerned
| Item | Current amount | Last-period amount |
| Interest income | 17,328,709.70 | 30,591,982.78 |
| Government subsidy | 18,415,845.60 | 7,639,374.06 |
| Intercourse funds | 15,273,968.49 | 7,399,077.47 |
| Other | 407,871.92 | 320,135.7 |
| Total | 51,426,395.71 | 45,950,570.01 |
2. Other cash paid in relation to operation activities
第99页
| Item | Current amount | Last-period amount |
| Out-of-pocket expenses | 44,496,464.32 | 48,434,930.11 |
| Intercourse funds | 12,486,872.79 | 9,982,836.03 |
| Total | 56,983,337.11 | 58,417,766.14 |
3. Other cash received in relation to investment activities
| Item | Current amount | Last-period amount |
| Debt repayment received from Huidong Server | 1,144,800.00 | |
| Interest from financial products | 6,763,164.80 | |
| Total | 7,907,964.80 |
4.Other cash received in relation to financing activities
| Item | Current amount | Last-period amount |
| Received from other company | 170,000,000.00 | |
| Total | 170,000,000.00 |
5. Cash paid related with financing activities
| Item | Current amount | Last-period amount |
| Other account paid | 887,962.40 | |
| Total | 887,962.40 |
(46) Supplementary information to statement of cash flow
1. Supplementary information to statement of cash flow
| Supplementary information | Current amount | Last-period amount |
| 1. Net profit adjusted to cash flow of operation activities | ||
| Net profit | -509,400,606.15 | 67,924,788.49 |
| Add: credit impairment loss | ||
| Assets impairment provision | 327,479,010.92 | 43,718,679.38 |
| Depreciation and amortization of investment properties | 196,137.60 | 196,137.60 |
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| Supplementary information | Current amount | Last-period amount |
| Depreciation of fixed assets | 45,339,600.41 | 71,493,650.27 |
| Amortization of intangible assets | 755,241.12 | 908,122.77 |
| Amortization of long-term deferred expenses | 441,620.60 | 261,513.71 |
| Loss from disposing fixed assets, intangible assets and other long-term assets (income listed with “-“) | -974,699.74 | 1,109,128.91 |
| Loss on retirement of fixed assets (gain is listed with “-”) | 188,716.00 | 34,990.00 |
| Loss from changes of fair value (income listed with “-“) | ||
| Financial expense (gain listed with “-”) | 30,629,953.77 | 32,014,803.26 |
| Investment loss (gain listed with “-”) | -45,981,085.44 | -27,809,087.38 |
| Decrease of deferred income tax asset( (increase is listed with “-”) | 1,096,763.31 | |
| Decrease of inventory (increase is listed with “-”) | ||
| Decrease of inventory (increase is listed with “-”) | -205,923.56 | 22,175,312.08 |
| Decrease of operating receivable accounts (increase is listed with “-”) | 30,907,257.52 | 88,309,904.36 |
| Increase of operating payable accounts (decrease is listed with “-”) | 80,269,711.57 | -39,612,534.43 |
| Other | ||
| Net cash flow arising from operating activities | -39,258,302.07 | 260,725,409.02 |
| 2. Material investment and financing not involved in cash flow | ||
| Debt capitalization | ||
| Convertible company bond due within one year | ||
| Fixed assets acquired under finance leases | ||
| 3. Net change of cash and cash equivalents: | ||
| Ending Balance of cash | 456,751,614.75 | 397,101,272.21 |
| Less: Opening Balance of cash | 397,101,272.21 | 381,490,000.96 |
| Add: Ending Balance of cash equivalent | 232,853,018.84 | 367,500,000.00 |
| Less: Opening Balance of cash equivalent | 367,500,000.00 | 390,000,000.00 |
| Net increasing of cash and cash equivalents | -74,996,638.62 | -6,888,728.75 |
2. Composition of cash and cash equivalent
| Item | Ending Balance | Balance at the end of last year |
| I. Cash | 456,751,614.75 | 397,101,272.21 |
| Including: Cash on hand | 35,963.95 | 101,163.11 |
| Bank savings available for payment needed | 456,715,650.80 | 397,000,109.10 |
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| Item | Ending Balance | Balance at the end of last year |
| Other monetary capital available for payment needed | ||
| Account due from central bank available for payment | ||
| Amount due from banks | ||
| Amount call loans to banks | ||
| II. Cash equivalent | 232,853,018.84 | 367,500,000.00 |
| including: bond investment due within three months | ||
| III. Balance of cash and cash equivalent at period-end | 689,604,633.59 | 764,601,272.21 |
| Including: Cash and cash equivalent of the parent company or subsidiaries with use restricted |
(47) Assets of ownership or use right restricted
No assets of ownership or use right restricted in the period.
(48) Foreign currency
1. Foreign currency
| Item | Balance of foreign currency at period-end | Conversion rate | Balance of RMB converted at period-end |
| Monetary fund | |||
| Including: USD | 839,075.91 | 6.3757 | 5,349,696.28 |
| Euro | 1,017.87 | 7.2197 | 7,348.72 |
| HKD | 376,057.62 | 0.8176 | 307,464.71 |
| SGD | 4,338.03 | 4.7179 | 20,466.39 |
(49) Government subsidies
1. Government subsidies related to assets
| 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 | 43,032,780.00 | Deferred income | 544,168.22 | 458,768.16 | Other income |
| Support fund of recycling economy for sludge drying | 11,750,000.00 | Deferred income | 647,002.92 | 647,002.92 | Other income |
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| 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 | ||||
| Treasury subsidies for sludge drying | 5,100,000.00 | Deferred income | 255,000.00 | 255,000.00 | Other income |
| Subsidy for quality promotion of the air environment in Shenzhen | 70,977,273.00 | Deferred income | 4,731,818.16 | 4,789,725.96 | Other income |
| Special funds for energy conservation and emission reduction | 1,530,000.00 | Deferred income | 114,037.32 | 114,037.32 | Other income |
| Information construction | 520,000.00 | Deferred income | 25,490.12 | 61,176.48 | Other income |
| Funded of energy efficiency improvement for electric machine | 518,400.00 | Deferred income | 34,560.00 | 34,560.00 | Other income |
| 2021 Technical Transformation Project | 670,000.00 | Deferred income | 18,611.10 | Other income | |
| Total | 134,098,453.00 | 6,370,687.84 | 6,360,270.84 | ||
2. Government subsidies related to income
| 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 | |||
| Individual tax refund | 195,684.76 | 195,684.76 | 375,369.20 | Other income |
| Enterprise unemployment insurance premium refund | 4,176,211.18 | |||
| Employment and unemployment monitoring subsidy | 1,000.00 | |||
| Reward to encouraging small and medium-sized enterprise to growth as a scale-sized company | 27,816.00 | |||
| Supporting funds of office occupancy for listed companies | 1,822,300.00 | |||
| Special fund for the development of independent innovation industry | 100,000.00 | 100,000.00 | 500,000.00 | Other income |
| Qianhai Epidemic Prevention Support Special Fund | 448,791.00 | |||
| Subsidy of further stable growth | 100,000.00 | |||
| Job stabilization subsidy | 7,964.00 | 7,964.00 | 21,687.31 | Other income |
| Preferential refund of education fees for comprehensive utilization of resources products and labor | 517.92 | |||
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| 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 | |||
| National High Multiplication Plan | 400,000.00 | 400,000.00 | Other income | |
| 2021 Power Generation Gas Cost Subsidy | 16,322,000.00 | 16,322,000.00 | Operating cost | |
| Total | 17,025,648.76 | 17,025,648.76 | 8,757,263.31 | |
VI. Change of consolidate scopeNo change in the company included in the consolidated statement scope during the reportingperiod.VII. Equity in other entity
(1) Equity in subsidiaries
1. Composition of the Group
| Subsidiary | Main operation place | Shareholding ratio (%) | Acquired way | |
| Directly | Indirectly | |||
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | Zhongshan | 55.00 | 25.00 | Establishment |
| Shenzhen Shennandian Turbine Engineering Technology Co., Ltd. | Shenzhen | 60.00 | 40.00 | Establishment |
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | Shenzhen | 70.00 | 30.00 | Establishment |
| Shenzhen Server Petrochemical Supplying Co., Ltd | Shenzhen | 50.00 | Establishment | |
| Shenzhen New Power Industrial Co., Ltd. | Shenzhen | 75.00 | 25.00 | Establishment |
| Shen Nan Energy (Singapore) Co., Ltd. | Singapore | 100.00 | Establishment | |
| Hong Kong Syndisome Co., Ltd. | Hong Kong | 100.00 | Establishment | |
| Zhongshan Shennandian Storage Co., Ltd. | Zhongshan | 80.00 | Establishment | |
| Zhuhai Hengqin Zhuozhi Investment Partnership | Zhuhai | 99.96 | Establishment | |
2. Important non-wholly-owned subsidiary
| Subsidiary | Share-holding ratio of minority (%) | Gains/losses attributable to minority in the Period | Ending equity of minority |
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | 20.00 | -66,151,231.09 | -77,880,844.12 |
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3. Main finance of the important non-wholly-owned subsidiary
| Subsidiary | Ending Balance /Yuan | Balance at the end of last year/Yuan | ||||||||||
| 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”) | 32,544,636.55 | 231,154,252.88 | 263,698,889.43 | 647,836,819.17 | 5,266,290.86 | 653,103,110.03 | 63,887,511.26 | 486,793,086.63 | 550,680,597.89 | 603,862,934.78 | 5,465,728.24 | 609,328,663.02 |
| Subsidiary | Current amount/Yuan | Last-period amount/Yuan | ||||||
| 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”) | 124,646,010.22 | -330,756,155.47 | -330,756,155.47 | -7,574,929.39 | 202,539,109.51 | 35,690,722.96 | 35,690,722.96 | 114,269,754.95 |
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(2) Equity in joint venture and cooperative enterprise
1. Major joint venture and cooperative enterprise
| Name of joint venture or cooperative enterprise | Main operation place | Main business activities | Share-holding ratio（%） | Accounting treatment on investment for joint venture and cooperative enterprise | |
| Directly | Indirectly | ||||
| Huidong Server Harbor Comprehensive Development Company | Renshan Town, Huidong County | Wharf operation | 40.00 | Equity method | |
2. Main financial information of significant joint ventures or associates
| Ending Balance /Current amount | Opening Balance/Last-period amount | |
| Total book value of investment | 6,986,655.19 | 8,893,408.86 |
| Total numbers measured by share-holding ratio | ||
| Net profit | -1,906,753.67 | -5,725,794.17 |
| Other comprehensive income | ||
| Total comprehensive income | -1,906,753.67 | -5,725,794.17 |
VIII. Risks relating to financial instrumentsThe Company's main financial instruments include equity investment, notes receivable, long-term and short-termloans, accounts receivable, accounts payable, other payable, etc., see details of each financial instrument in relateditems of this annotation III (10). The risks associated with these financial instruments and the risk managementpolicies adopted by the Company to reduce these risks are described as below. The management of the Companymanages and monitors these risk exposures to ensure that the above risks are controlled within the limit range.The Company uses the sensitivity analysis technique to analyze the possible impact of the risk variable on thecurrent profit and loss or the shareholders' equity. Since any risk variable rarely changes in isolation, and thecorrelation existing among the variables shall have a significant effect on the final amount of changes about acertain risk variable, therefore, the following proceeds by assuming that the change in each variable isindependent.
(1) Credit risk
Credit risk refers to the risk that one party to a financial instrument fails to perform its obligations, causing theother party to suffer financial losses. The Company is mainly faced with customer credit risk caused by credit
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sales. Before signing a new contract, the Company will evaluate the credit risk of the new customer, including theexternal credit rating and, in some cases, the bank credit certificate (when this information is available). Thecompany has set a credit limit for each customer, which is the maximum amount without additional approval.The company ensures that the company's overall credit risk is within a controllable range through quarterlymonitoring of existing customer credit ratings and monthly review of accounts receivable aging analysis. Whenmonitoring the credit risk of customers, they are grouped according to their credit characteristics. Customers ratedas "high risk" will be placed on the restricted customer list, and only with additional approval, the company cansell them on credit in the future, otherwise they must be required to pay the corresponding amount in advance.
(2) Market risk
Market risks of financial instruments refers to the risks that the fair value or future cash flow of such 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 relatedto the floating interest rate bank loans.
Interest rate risk sensitivity analysis:
The interest rate risk sensitivity analysis is based on the following assumptions:
Changes in market interest rates affect the interest income or expense of financial instruments with variableinterest rate; For financial instruments with fixed rate by fair value measurement, the changes in market interestrates only affect their interest income or expense; For derivative financial instruments designated as hedginginstruments, the changes in market interest rates affect their fair value, and all interest rate hedging prediction ishighly effective; Calculate the changes in fair value of derivative financial instruments and other financial assetsand liabilities by using the cash flow discount method at the market interest rate at the balance sheet date.As of 31 December 2021, interest on bank loans at floating interest rate totaled 4,849,829.00Yuan. Based on theabove assumptions and with other variables unchanged, the pre-tax impact of a 5% changes in interest rate oncurrent gain/loss 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 | -242,491.45 | -242,491.45 | -14,399.25 | -14,399.25 |
| 5% decreased | 242,491.45 | 242,491.45 | 14,399.25 | 14,399.25 |
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(2) FX risks
Foreign exchange risk refers to the risk of losses due to exchange rate changes. The Company’s foreign exchangerisk is mainly related to the US dollar. On Dec. 31, 2021, except for the balance of foreign currency monetaryitems of (48), foreign currency monetary in Note V, the assets and liabilities of the Company are RMB balance.The foreign exchange risk arising from the assets and liabilities of such foreign currency balances may have animpact on the Company's operating results.
(3) Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation of settlement bymeans of cash or other financial assets. The Company's policy is to ensure that it has sufficient cash to repay thedebts due. Liquidity risk is centrally controlled by the Company's financial department. The financial departmentmonitors cash balances, marketable securities that can be cashed at any time, and rolling forecasts of cash flows inthe next 12 months to ensure that the company has sufficient funds to repay debts under all reasonable forecasts.
IX. Related party and related party transactions
(1) Parent company of the Group
Share holding proportion of any shareholder of the Company didn't reach 50%, and couldn't form a holdingrelationship of the Company through any methods. The Company has no parent company.
(2) Subsidiaries of the Company
See details in Note VII. (1) Equity in other entity
(3) Joint venture and affiliated enterprise of the Group
See details in Note VII. (2) Interest in joint venture arrangements or associates
(4) Other related party
| Other related party | Relationship with the Company |
| Shenzhen Energy Group Co., Ltd. (“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 |
| Directors, supervisors and senior management of the company | Key managers |
(5) Related party transaction
1. Remuneration of key manager
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| Item | Current amount | Last-period amount |
| Remuneration of key manager | 6,373,300 Yuan | 5,301,000 Yuan |
(6) Receivable/payable items of related parties
1. Receivable
| Item | Related party | Ending book balance | Book balance at last year-end |
| Other account receivable | |||
| Huidong Server | 14,740,501.44 | 14,740,501.44 | |
| Huidong Server managed account | 1,014,945.19 | 6,634,071.38 | |
| Total | 15,755,446.63 | 21,374,572.82 |
X. Commitment and Contingency
(1) Major Commitment
As of December 31, 2021, the company has no commitments that need to be disclosed.
(2) Contingency
As of December 31, 2021, the company has no commitments that need to be disclosed.
XI. Events Occurring after the Balance Sheet Date
As of the date of this report, the company has no contingencies that need to be disclosed.
(1) Important non-adjusting matters
Nil
(2) Note of other events occurring after the balance sheet date
Nil
(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
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standards adopted when each division reports to the management. These measurement bases are consistent withthe accounting and measurement bases used when preparing financial statements.
2. Financial information of the reportable segment
| Item | Power supply & heating | Fuel trading | Other | Fuel trading | Total |
| Operation income | 797,730,101.42 | 1,196,857.16 | 47,097,449.18 | 88,848,664.35 | 757,175,743.41 |
| Operation cost | 902,277,301.90 | 215,877.10 | 33,417,537.23 | 85,650,056.83 | 850,260,659.40 |
| Total assets | 3,391,577,016.75 | 101,091,770.98 | 371,549,715.65 | 1,074,215,678.97 | 2,790,002,824.41 |
| Total liabilities | 1,897,219,137.10 | 17,616,043.71 | 39,375,959.92 | 742,550,231.76 | 1,211,660,908.97 |
XII. Note to main items of financial statements of the Company
(1) Account receivable
1. Age analysis
| Age | Ending Balance | Balance at the end of last year |
| Within 1year | 35,966,056.15 | 24,673,115.32 |
| Over 3 years | ||
| Subtotal | 35,966,056.15 | 24,673,115.32 |
| Less: Bad debt provision | ||
| Total | 35,966,056.15 | 24,673,115.32 |
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 combination of risk characteristics | 35,966,056.15 | 100.00 | 35,966,056.15 | ||
| Including: risk-free portfolio | 35,966,056.15 | 100.00 | 35,966,056.15 | ||
| Total | 35,966,056.15 | 100.00 | 35,966,056.15 | ||
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| Category | Balance at the end of last year | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| Bad debt by single provision | |||||
| Provision for bad debts by combination of risk characteristics | 24,673,115.32 | 100.00 | 24,673,115.32 | ||
| Including: risk-free portfolio | 24,673,115.32 | 100.00 | 24,673,115.32 | ||
| Total | 24,673,115.32 | 100.00 | 24,673,115.32 | ||
Provision for bad debts by portfolio:
| Name | Ending Balance | ||
| Account receivable | Bad debt provision | Accrual proportion (%) | |
| Grid accounts receivable | 35,966,056.15 | ||
| Total | 35,966,056.15 | ||
3. Top 5 receivables at ending balance by arrears party
Total period-end balance of top five receivables by arrears party amounting to 35,966,056.15 Yuan, takes 100.00%of the total account receivable at period-end, bad debt provision accrual correspondingly at period-end amountingas 0 Yuan
(2) Other account receivable
| Item | Ending Balance | Balance at the end of last year |
| Interest receivable | ||
| Dividends receivable | ||
| Other account receivable | 618,436,063.60 | 598,044,417.89 |
| Total | 618,436,063.60 | 598,044,417.89 |
1. Other account receivable
(1)Age analysis
| Age | Ending Balance | Balance at the end of last year |
| Within 1year | 98,550,452.19 | 6,702,182.44 |
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| Age | Ending Balance | Balance at the end of last year |
| 1-2 years | 64,095.20 | 35,844,839.81 |
| 2-3 years | 35,844,839.81 | 10,166,211.56 |
| Over 3 years | 511,306,319.84 | 572,660,827.52 |
| Subtotal | 645,765,707.04 | 625,374,061.33 |
| Less: Bad debt provision | 27,329,643.44 | 27,329,643.44 |
| Total | 618,436,063.60 | 598,044,417.89 |
(2) By category
| Category | Ending Balance | ||||
| Book balance | Bad debt provision | Book value | |||
| Amount | Proportion (%) | Amount | Accrual proportion (%) | ||
| Bad debt by single provision | 27,965,391.68 | 4.33 | 27,329,643.44 | 97.73 | 635,748.24 |
| Provision for bad debts by combination of risk characteristics | 617,800,315.36 | 95.67 | 617,800,315.36 | ||
| Including: risk-free portfolio | 617,800,315.36 | 95.67 | 617,800,315.36 | ||
| Total | 645,765,707.04 | 100.00 | 27,329,643.44 | 4.23 | 618,436,063.60 |
| Category | Balance at the end of last year | ||||
| 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 combination of risk characteristics | 597,350,902.11 | 95.52 | 597,350,902.11 | ||
| Including: risk-free portfolio | 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 |
With single provision for bad debts:
| Name | Ending Balance | |||
| Book balance | Bad debt provision | Accrual proportion (%) | Causes | |
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| Name | Ending Balance | |||
| Book balance | Bad debt provision | Accrual proportion (%) | Causes | |
| Individual income tax | 2,470,039.76 | 2,470,039.76 | 100.00 | Unable to recover |
| Dormitory amount receivable | 2,083,698.16 | 1,736,004.16 | 83.31 | Unable to recover |
| Huiyang Kangtai Industrial Company | 14,311,626.70 | 14,311,626.70 | 100.00 | Unable to recover |
| Beneficiary fund dividends (personal receivables) | 7,498,997.87 | 7,498,997.87 | 100.00 | Unable to recover |
| Deposit receivable | 1,601,029.19 | 1,312,974.95 | 82.01 | Unable to recover |
| Total | 27,965,391.68 | 27,329,643.44 | 97.73 | |
(3) Accrual of bad debt provision
| 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 | ||||
| ——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 |
(5) By nature
| Nature | Ending book balance | Book balance at last year-end |
| Related party transactions | 616,401,741.49 | 596,066,327.13 |
| Dormitory receivable | 2,083,698.16 | 2,083,698.16 |
| Deposit receivable | 1,750,498.58 | 1,658,753.42 |
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| Nature | Ending book balance | Book balance at last year-end |
| Personal money | 8,567,330.57 | 9,969,037.63 |
| Other | 16,962,438.24 | 15,596,244.99 |
| Subtotal | 645,765,707.04 | 625,374,061.33 |
| Less: Bad debt provision | 27,329,643.44 | 27,329,643.44 |
| Total | 618,436,063.60 | 598,044,417.89 |
(3) Long-term equity investment
| Item | Ending Balance | Balance at the end of last year | ||||
| Book balance | Depreciation provision | Book value | Book balance | Depreciation provision | Book value | |
| Investment in subsidiary | 716,893,717.00 | 429,592,447.19 | 287,301,269.81 | 597,936,200.00 | 347,745,035.00 | 250,191,165.00 |
| Total | 716,893,717.00 | 429,592,447.19 | 287,301,269.81 | 597,936,200.00 | 347,745,035.00 | 250,191,165.00 |
1. Investment to subsidiary
| The invested entity | Balance at the end 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 Industrial Co., Ltd. | 71,270,000.00 | 71,270,000.00 | ||||
| Shen Nan Dian (Zhongshan) Electric Power Co., Ltd. | 410,740,000.00 | 410,740,000.00 | 62,994,965.00 | 410,740,000.00 | ||
| Shenzhen Shennandian Turbine Engineering Technology Co., Ltd. | 6,000,000.00 | 6,000,000.00 | ||||
| Shenzhen Shen Nan Dian Environment Protection Co., Ltd. | 55,300,000.00 | 55,300,000.00 | 18,852,447.19 | 18,852,447.19 | ||
| Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership) | 21,272,400.00 | 118,957,517.00 | 140,229,917.00 | |||
| Total | 597,936,200.00 | 118,957,517.00 | 716,893,717.00 | 81,847,412.19 | 429,592,447.19 |
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(4) Operation revenue and operation cost
| Item | Current amount | Last-period amount | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 304,694,251.31 | 409,069,566.58 | 309,680,939.69 | 344,087,651.19 |
| Other business | 88,487,552.28 | 491,345.55 | 66,299,908.86 | 6,677,789.32 |
| Total | 393,181,803.59 | 409,560,912.13 | 375,980,848.55 | 350,765,440.51 |
(5) Investment income
| Item | Current amount | Last-period amount |
| Investment income from disposal of long-term equity investments | -14,432,400.00 | |
| Investment income from trading financial assets during the holding period | 47,412,260.98 | |
| Dividend income earned during the holding period of investments in other equity instruments | 252,016.49 | |
| Total | 47,664,277.47 | -14,432,400.00 |
XIII. Supplementary information
(1) Statement of non-recurring gains/losses
| Item | Amount | Note |
| Gains and losses from disposal of non-current assets | 974,699.74 | |
| 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 | 23,396,336.60 | |
| Capital occupancy expense, collected from non-financial enterprises and recorded in current gains and losses | ||
| Income from the exceeding part between investment cost of the Company paid for obtaining subsidiaries, associates and joint-ventures and recognizable net assets fair value attributable to the Company when acquiring the investment | ||
| Gains and losses from exchange of non-monetary assets | ||
| Gains and losses from assets under trusted investment or management | ||
| Various provision for impairment of assets withdrew due to act of God, such as natural disaster | ||
| Gains and losses from debt restructuring | ||
| Enterprise restructuring costs, such as expenses for staff placement, integration costs, etc | ||
| Gains and losses of the part arising from transaction in which price is not fair and exceeding fair value |
第115页
| Item | Amount | Note |
| 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 | 5,000,000.00 | |
| Except for effective hedge business relevant to normal operation of the Company, gains and losses arising from fair value change of Trading financial assets and tradable financial liabilities, and investment income from disposal of Trading financial assets, tradable financial liabilities and financial assets available for sale | 47,887,839.11 | |
| Switch-back of provision of impairment of account receivable which are treated with separate depreciation test | ||
| Gains and losses obtained from external trusted loans | ||
| Gains and losses arising from change of fair value of investment real estate whose follow-up measurement are conducted according to fair value pattern | ||
| Affect on current gains and losses after an one-time adjustment according to requirements of laws and regulations regarding to taxation and accounting | ||
| Trust fee obtained from trust operation | ||
| Other non-operating income and expenditure except for the aforementioned items | 13,652.99 | |
| Other gains and losses items complying with definition for non-recurring gains and losses | ||
| Subtotal | 77,272,528.44 | |
| Less: impact on income tax | ||
| Less: impact on minority equity | 2,579,026.82 | |
| Total | 74,693,501.62 |
(2) ROE and EPS
| Profit in the Period | Weighted average ROE (%)） | EPS (Yuan) | |
| Basic EPS | Diluted EPS | ||
| Net profit attributable to shareholders of the listed company | -23.95 | -0.7291 | -0.7291 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | -28.02 | -0.8530 | -0.8530 |
Shenzhen Nanshan Power Co., Ltd
(Stamped)
March 23, 2022