2024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Stock code: 000037 200037 Stock abbreviation: Shenzhen Nanshan Power A Shenzhen Announcement No.: 2025-009
Nanshan Power B
Shenzhen Nanshan Power Co. Ltd.
2024 Annual Report
April 2025
12024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
2024 Annual Report
Section I Important contents and definitions
The Board of Directors the Board of Supervisors directors supervisors and
senior officers guarantee that the contents of the annual report are true
accurate and complete without any false records misleading statements or
major omissions and shall bear individual and joint legal liability.Kong Guoliang the Principal Chen Yuhui the Chief Accountant Zhang
Xiaoyin the Chief Financial Officer and Lin Xiaojia Head of the Finance
Department (Finance Head) guarantee that the financial reports in the annual
report are true accurate and complete
All directors attended the meeting of Board of Directors at which the report
was reviewed.The Company has planned not to distribute cash dividends give away bonus
shares or increase share capital by capital reserves.The annual report is prepared in Chinese and English respectively. If there is
any ambiguity in the understanding of the two texts the Chinese text shall
prevail. Investors are requested to read the full text of the annual report
carefully.If there are forward-looking statements in the annual report involving the
company's future development strategy business plans etc. they do not
22024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
constitute the Company's substantive commitment to investors. Investors are
advised to maintain adequate risk awareness and understand the differences
between plans forecasts and commitments and pay attention to investment
risks.
32024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Table of contents
Section I Important contents and definitions ........ 2
Section II Company profile and key financial indic... 7
Section III Management discussion and analysis ..... 12
Section IV Corporate governance .................... 45
Section V Environmental and social responsibilitie.. 72
Section VI Important matters ....................... 75
Section VII Changes in shares and shareholders ..... 83
Section VIII Preferred shares ...................... 91
Section IX Bonds ................................... 91
Section X Financial report ......................... 92
42024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
List of documents for inspection
I. Financial statements bearing the signatures and seals of the Principal Chief Financial Officer and Chief Accountant
(accounting supervisor) of the Company.II. The original auditor's report stamped by the accounting firm and signed and stamped by the certified public accountant.III. The originals of all the Company's documents and announcements that have been publicly disclosed on the designated
media during the reporting period.IV. Place of inspection: office of the Company's Board of Directors.
52024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Interpretation
Item Refer to Content
Company the Company Shenzhen Nanshan
Refer to Shenzhen Nanshan Power Co. Ltd.Power and listed company
CSRC Refer to China Securities Regulatory Commission
Shenzhen State-owned Assets Supervision and State-owned Assets Supervision and Administration
Refer to
Administration Commission Commission of Shenzhen People's Government
Energy Corporation Refer to Shenzhen Energy Corporation
Shenzhen Nanshan Power (Zhongshan) Power Co.Shenzhen Nanshan Power Zhongshan Company Refer to
Ltd.Shenzhen Nanshan Power Engineering Shenzhen Nanshan Power Gas Turbine Engineering
Refer to
Company Technology (Shenzhen) Co. Ltd.Shenzhen Nanshan Power Environmental Shenzhen Nanshan Power Environmental Protection
Refer to
Protection Company (Shenzhen) Co. Ltd.Shenzhen Nanshan Power Xiwan Energy
Shenzhen Nanshan Power Xiwan Company Refer to
(Zhongshan) Co. Ltd.Xiefu Company Refer to Shenzhen Xiefu Energy Co. Ltd.New Power Company Refer to Shenzhen New Power Industrial Co. Ltd.Shenzhen Nanshan Power Co. Ltd. Nanshan Power
Nanshan Power Plant Refer to
Plant
Shenzhen Nanshan Power (Zhongshan) Power Co.Zhongshan Nanlang Power Plant Refer to
Ltd. Zhongshan Nanlang Power Plant
Huidong Xiefu Port Comprehensive Development
Huidong Xiefu Refer to
Co. Ltd.Shenzhen United Property and Equity
Refer to Shenzhen United Property and Equity Exchange
Exchange
Zhuhai Hengqin Zhuozhi Investment Partnership
Zhuozi Fund Refer to
(Limited Partnership)
Company Law Refer to Company Law of the People's Republic of China
Securities Law Refer to Securities Law of the People's Republic of China
Rules Governing the Listing of Stocks on Shenzhen
Stock Listing Rules Refer to
Stock Exchange
Articles of Association of Shenzhen Nanshan Power
Articles of Association Refer to
Co. Ltd.Except for the specially described monetary units the
RMB RMB 10000 RMB 100000000 Refer to remaining ones are RMB RMB 10000 and RMB
100000000
Reporting period Refer to From January 1 2024 to December 31 2024
62024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Section II Company profile and key financial indicators
I. Company information
Shenzhen Nanshan Power A
Stock name Ticker 000037 200037
Shenzhen Nanshan Power B
Stock exchange Shenzhen Stock Exchange
Name in Chinese Shenzhen Nanshan Power Co. Ltd.Abbreviation in Chinese Shenzhen Nanshan Power
Name in English (if any) Shenzhen Nanshan Power Co. Ltd.Legal representative of the
Kong Guoliang
Company
Registered address No. 2097 Yueliangwan Avenue Nanshan District Shenzhen Guangdong Province
Postal code 518054
Historical changes of
None
registered address
Office address 16/F-17/F Hantang Building OCT Nanshan District Shenzhen Guangdong Province
Postal code 518053
Website http://www.nsrd.com.cn
E-mail Public@nspower.com.cn; investor@nspower.com.cn
II. Contact and contact information
Secretary of the Board of Directors Securities representative
Name Zou Yi
16/F-17/F Hantang Building OCT
Contact address Nanshan District Shenzhen Guangdong
Province
Tel. 0755-26003611
Fax 0755-26003684
E-mail investor@nspower.com.cn
III. Information disclosure and preparation location
The stock exchange website where the Company discloses its
Shenzhen Stock Exchange: http://www.szse.cn/
annual report
Name and website of the media where the Company discloses Securities Times: http://www.stcn.com/
its annual report Cninfo: http://www.cninfo.com.cn/
Office of the Board of Directors 17/F Hantang Building OCT
Preparation location of annual report
Nanshan District Shenzhen Guangdong Province
IV. Changes in registration
Unified social credit code 91440300618815121H
72024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Changes in the Company's main business since its listing (if
No change
any)
Previous changes in controlling shareholders (if any) No controlling shareholder
V. Other relevant information
The accounting firm hired by the Company
Name of the accounting firm Lixinzhonglian CPAS (Special General Partnership)
1-1-2205-1 North District Financial and Trade Center No.
Office address 6865 Yazhou Road Tianjin Pilot Free Trade Zone (Dongjiang
Bonded Port Zone)
Name of signatory accountant Cao Wei Li Mincong
The sponsor hired by the Company to perform continuous supervision responsibilities during the reporting period
□ Applicable □Not applicable
Financial consultant hired by the Company to perform continuous supervision duties during the reporting period
□ Applicable □Not applicable
VI. Key accounting data and financial indicators
Whether the Company needs to retroactively adjust or restate the accounting data of previous years
□Yes □No
Change compared with
202420232022
the previous year
Operating revenue
442971955.85589780190.71-24.89%694227657.28
(RMB)
Net profit attributable
to shareholders of
21908828.574158797.10426.81%-160163240.67
listed companies
(RMB)
Net profit attributable
to shareholders of
listed companies after
-87508091.57-70789007.91-23.62%-225967573.71
deducting non-
recurring profit or loss
(RMB)
Net cash flows from
operating activities -37635766.05 -100371976.92 62.50% 207168402.26
(RMB)
Basic earnings per
0.03630.0069426.09%-0.2657
share (RMB/share)
Diluted earnings per
0.03630.0069426.09%-0.2657
share (RMB/share)
Weighted average rate Increased by 1.20
1.49%0.29%-10.43%
of return on net assets percentage points
Change compared with
End of 2024 End of 2023 the end of the previous End of 2022
year
82024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Total assets (RMB) 2012736635.59 2049365388.69 -1.79% 2606216345.99
Net assets attributable
to shareholders of
1485380575.081459288691.941.79%1455129894.84
listed companies
(RMB)
The Company's net profit before and after deducting non-recurring profit or loss in the past three fiscal years whichever is lower
is negative; meanwhile the auditor's report for the most recent year shows that there is uncertainty in the Company's going-
concern ability
□Yes □No
The lower of net profit before and after deducting non-recurring profit or loss is negative.□Yes □No
Item 2024 2023 Remark
Mainly from power
Operating revenue (RMB) 442971955.85 589780190.71 production and sales and
integrated energy services
Mainly from self-owned
Amount after deduction of
5642037.47 1409620.51 property lease and property
operating revenue (RMB)
lease management services
Operating revenue after
deducting revenue from self-
Amount after deduction of
437329918.38 588370570.20 owned property lease and
operating revenue (RMB)
property lease management
services
VII. Differences in accounting data under domestic and foreign accounting standards
1. Differences in net profit and net assets in financial reports disclosed in accordance with both
international and Chinese accounting standards
□ Applicable □Not applicable
There was no difference between net profit and net assets in the financial reports disclosed in accordance with both international
and Chinese accounting standards during the reporting period of the Company.
2. Differences in net profit and net assets in financial reports disclosed in accordance with both
international and Chinese accounting standards
□ Applicable □Not applicable
There was no difference between net profit and net assets in the financial reports disclosed in accordance with both international
and Chinese accounting standards during the reporting period of the Company.VIII. Key financial indicators by quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 80580975.91 107323288.80 183104712.19 71962978.95
Net profit attributable to
shareholders of listed -29071219.61 -8779890.29 -7777120.17 67537058.64
companies
92024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Net profit attributable to
shareholders of listed
-32868603.74-11891453.34-11138395.03-31609639.46
companies after deducting
non-recurring profit or loss
Net cash flows from operating
-71854442.0518857950.62-28410239.0543770964.43
activities
Whether there are significant differences between the above financial indicators or their totals and the relevant financial indicators
disclosed by the Company in quarterly reports and semi-annual reports or not
□Yes □No
IX. Non-recurring profit or loss and amounts
□Applicable □Not applicable
Unit: RMB
Amount in
Item Amount in 2024 Amount in 2023 Remark
2022
Mainly affected by the
profit or loss of the
40% equity transfer of
Profit or loss on disposal of non-current Huidong Xiefu and the
assets (including write-off of provision for 163881112.16 1878391.11 -1171953.71 profit or loss of land
asset impairment) acquisition and storage
of Shenzhen Nanshan
Power Zhongshan
Company.Government subsidies included in current
profit or loss (except those that are closely
related to the Company's normal business Mainly due to the
in line with national policy regulations and 486069.90 44431212.00 9333093.72 government subsidies
in accordance with defined criteria and related to income.have a lasting impact on the Company's
profit or loss)
Profit or loss from changes in fair value of
financial assets and liabilities held by non-
Mainly from the
financial enterprises and profit or loss from
investment income
the disposal of financial assets and financial 11286239.10 18538064.54 58227971.21
obtained from the
liabilities except for effective hedging
structured deposits.operations related to the Company's normal
business operations
Reversal of provision for impairment of
receivables individually tested for 0.00 1235154.68 0.00
impairment
Mainly due to housing
Other non-operating revenue and expenses
775495.19 11628630.83 -635065.42 demolition and
other than the above
resettlement subsidies.Less: income tax impact 9140402.85 0.00 0.00
Changes in the amount of minority
57871593.362763648.15-50287.24
interests (after tax)
Total 109416920.14 74947805.01 65804333.04 --
Details of other profit or loss that meet the definition of non-recurring profit or loss:
102024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
□ Applicable □Not applicable
The Company had no specific profit or loss items that meet the definition of non-recurring profit or loss.Notes on the definition of the non-recurring profit or loss items listed in the "Interpretive Announcement No. 1 on Information
Disclosure of Companies Issuing Securities to the Public - Non-recurring Profit or Loss" as recurring profit or loss items
□ Applicable □Not applicable
The Company had no circumstances of definition of the non-recurring profit or loss items listed in the "Interpretive Announcement
No. 1 on Information Disclosure of Companies Issuing Securities to the Public - Non-recurring Profit or Loss" as recurring profit
or loss items.
112024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Section III Management discussion and analysis
I. Industry status of the Company during the reporting period
The Company shall comply with the disclosure requirements for power supply industry in the Shenzhen Stock Exchange Listed
Company Self-Regulatory Guidelines No. 3 - Industry Information Disclosure
In 2024 China's power consumption demand continued to grow steadily with the national total electricity consumption reaching
9.85 trillion KWH a year-on-year increase of 6.8% and an increase of growth rate by 0.1% compared with the previous year and
with the electricity consumption of the whole industry (including the primary secondary and tertiary industries) reaching 8.36
trillion KWH a year-on-year increase of 6.2% reflecting the stability of China's economic fundamentals and the continuous
improvement of the electrification level of terminal energy consumption. Driven by the "Carbon Peaking and Carbon Neutrality"
goal and energy transition the power production industry accelerated its transition to green and low-carbon. As at the end of 2024
the annual installed capacity of power generation exceeded 3.35 billion KWH a year-on-year increase of 14.6% and the installed
capacity of non-fossil energy accounted for more than half marking a new stage in China's energy structure adjustment.Specifically the installed capacity of new energy power generation including wind power solar power and biomass power
generation reached 1.45 billion KWH surpassing the installed capacity of thermal power (1.44 billion KWH) for the first time
and becoming the main supporting power source of the new power system. Among them the installed capacity of solar power
generation was 887 million KWH (up 45.2% YoY) and the installed capacity of wind power was 521 million KWH (up 18%
YoY) which completed the goal of "1.2 billion KWH of total installed capacity of wind power in 2030" proposed at the national
climate ambition summit six years ahead of schedule. The growth rate of thermal power installed capacity slowed down
significantly (up 3.2% YoY) coal-fired power's share of total installed capacity declining to 35.7% (down 4.2% Yo Y).Nevertheless coal power still plays an important role in the grid as both baseload and peaking capacity. The annual coal power
generation still accounted for 54.8% of the total electricity output remaining the cornerstone of grid stability. In general a new
power system with new energy as its mainstay is being formed at an accelerating pace.In the context of the accelerated restructuring of the global energy pattern and the continuous advancement of the "carbon peaking
and carbon neutrality goals" building a new power system with new energy as the mainstay and deepening the reform of the
power system have become a key task for China's energy development. In 2024 China's new energy storage maintained rapid
growth with an annual new energy storage installed capacity of 43.7 million KWH/109.8 million KWH. By the end of 2024 the
cumulative installed capacity of new energy storage projects in China reached 73.76 million KWH/168 million KWH about 20
times that at the end of the 13th Five-Year Plan with an increase of more than 130% compared with the end of 2023. The
cumulative installed capacity of new energy storage exceeded that of pumped storage for the first time. This indicates that the
supporting development path of the coordinated development of energy storage and new energy has gradually transformed from
the initial stage of policy promotion to market-oriented development needs. With the rapid development of the new energy and
energy storage industry a large number of new energy and energy storage projects need professional technical service support and
the integrated energy service industry has also ushered in development opportunities. Under the development trend of deep
synergy of "source network load and storage" integrated energy service as an emerging business model can integrate various
energy resources provide customers with one-stop and integrated energy solutions effectively meet customers' diversified needs
for energy efficient use low-carbon environmental protection and cost control and show great development potential and broad
market prospects.II. Main business of the Company during the reporting period
The Company shall comply with the disclosure requirements for power supply industry in the Shenzhen Stock Exchange Listed
Company Self-Regulatory Guidelines No. 3 - Industry Information Disclosure
122024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
The Company's primary business includes power and heat supply for production and operation and technical consulting and
technical services related to power plants (stations). At the end of the reporting period the Company's Nanshan Power Plant had a
total of 3 sets of 9E type gas-steam combined cycle generating units with a total installed capacity of 540000 KW. The power
plant is located in the power load center area of Qianhai Free Trade Zone Shenzhen and is the main peak shaving power supply
plant in the region. It is currently in normal production and operation. Zhongshan Nanlang Power Plant received the Letter on
Matters Regarding the Units Shutdown of Shenzhen Nanshan Power (Zhongshan) Power Co. Ltd. Nanlang Power Plant from
Energy Bureau of Guangdong Province on November 6 2023 in which Energy Bureau of Guangdong Province agreed to shut
down two 180MW gas-fired cogeneration units of Zhongshan Nanlang Power Plant. At present the two sets of 9E gas-steam
combined cycle power generating units owned by Zhongshan Nanlang Power Plant have been shut down and withdrawn from
dispatching operation and the generating unit equipment and related assets have been successfully listed for transfer in March
2025.
During the reporting period the Company's primary business of power faced challenges such as fierce competition in the power
market and sustained high fuel price. In the face of the complex and ever-changing economic situation at home and abroad and the
increasingly fierce market competition the Company has strengthened its confidence in development maintained its strategic
focus adhered to the core values of "professionalism and dedication innovation and efficiency courage and decisiveness
harmony and mutual benefit" took deepening reform as a key breakthrough point actively responded to various problems and
challenges and made every effort to promote the orderly development of all work. Through a series of solid measures the
Company's new business layout has achieved breakthroughs the main business has been further compacted the management
efficiency has been continuously improved the market-oriented reform has been steadily advanced and the profit level has
reached a new level laying a solid foundation for the sustainable development of the Company.During the reporting period the Company focused on the operation and development and market expansion of affiliates. Shenzhen
Nanshan Power Engineering Company relying on its years of technical experience in the construction of gas turbine power station
projects and accumulated cooperation resources focused on the relevant engineering service business in the gas turbine field. With
professional and refined technical capabilities it signed a number of contracts successively to provide professional technical
services for customers; Shenzhen Nanshan Power Environmental Protection Company takes integrated energy service as the
transformation development direction comprehensively develops integrated energy service projects such as industrial and
commercial energy storage distributed photovoltaics and charging piles and strives to build a new integrated energy service
business model. It has initially formed an integrated service model of "investment construction operation management and
maintenance"; Xiefu Company actively expanded its business scope focused on the property lease management service business
of Energy Corporation and significantly improved its market development ability property management ability and profitability.At the same time it efficiently revitalized inefficient resources and successfully completed the transfer of 40% equity of Huidong
Xiefu.Main production and operation information
Item Reporting period Same period last year
54 (excluding the installed capacity of
two generating units of Zhongshan
Total installed capacity (10000 KW) 54 Nanlang Power Plant that were shut
down and withdrawn from dispatching
operation in November 2023)
Installed capacity of newly commissioned unit (10000 KW) 0 0
132024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Planned installed capacity of approved projects (10000 KW) 0 0
Planned installed capacity of projects under construction
00
(10000 KW)
Power generation (100 million KWH) 5.12 6.57
On-grid energy or energy sold (100 million KWH) 5.10 6.54
Average power consumption rate of the power plant (%) 3.85% 3.90%
Utilization hours of the power plant (hours) 933 723
The Company's power sales
□Applicable □Not applicable
Shenzhen Nanshan Power Environmental Protection Company a subsidiary of the Company was approved to carry out market-
oriented power sales in Guangdong Province in January 2024. While carrying out power sales Shenzhen Nanshan Power
Environmental Protection Company actively expands power value-added services including industrial and commercial energy
storage contract energy management comprehensive energy saving and energy consulting services. In 2024 Shenzhen Nanshan
Power Environmental Protection Company purchased 34.42 million KWH of electricity on behalf of its users a remarkable
breakthrough.Reasons for significant changes in relevant data
□ Applicable □Not applicable
III. Core competitiveness analysis
In recent years the Company's primary business has been facing increasing difficulties and challenges due to the macroeconomic
situation and common issues in the gas turbine power generation industry. However the fundamental core competitiveness formed
over more than thirty years of operation and development along with strong support from the major shareholders innovative
management practices adopted by the Company's Board of Directors and management team have laid a necessary foundation for
the Company's ongoing operations and pursuit of transformative development. During the reporting period the Company adhered
to the concept of steady development firmly believed in its strategy flexibly adjusted its business strategy carefully optimized its
resource allocation successfully overcame a series of development problems and further consolidated and enhanced its core
competitiveness.
1. Management culture of hard work and innovation. The Company has a group of management personnel with a sense of
innovation and the spirit of hard work. By deepening human resource reform and building a performance-oriented appraisal and
incentive mechanism the Company advocates and creates a management culture of unity hard work innovation and progress. In
addition the Company attaches great importance to and vigorously promotes the construction of its institutional management and
compliance systems. It adheres to a standardized management that is law-abiding regulation-compliant scientific rigorous
efficient and orderly. Through process-based refined and standardized management guidance the Company has established a
solid foundation for deeply tapping into internal potential and actively seeking external opportunities.
2. Professional and enterprising technical talents. With more than 30 years of hard work and influence in the gas turbine power
generation industry the Company has attracted and trained a group of technical experts and professionals in the gas turbine
industry and has accumulated rich experience in the construction and operational management of gas turbine power plants. In
142024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
order to comply with the market trend of power market-oriented reform in the Guangdong Province the Company has established
a professional power marketing team to study power trading strategies explore and build power marketing mathematical models.The accumulative rich experience in power marketing has laid a solid foundation for the Company to participate in the
construction of new power market and integrate into the wave of power market reform. In addition with its excellent technical
strength Shenzhen Nanshan Power Engineering Company has provided comprehensive professional services such as technical
consulting commissioning and operation guarantee for dozens of gas turbine power stations at home and abroad; The Company
has successively undertaken the technical personnel training business of dozens of power plants at home and abroad. With high-
quality training content and professional teaching team it has become a well-known professional talent training base in the
domestic gas turbine industry and has established a good reputation and professional brand image in the industry.
3. A level of expertise that is up to date. In recent years the Company has continued to increase its R&D efforts and promoted
the implementation of innovation-driven development. The scientific research and innovation work has been unanimously
recognized by the society. On December 26 2024 it successfully passed the review again and obtained the national high-tech
enterprise certificate. The Company has a number of independent invention patents utility model patents and software copyrights
and jointly drafted and prepared 1 national standard. During the reporting period the Company applied for 2 invention patents and
5 utility model patents to the China National Intellectual Property Administration of which 1 utility model patent has been granted.
The Company's total number of authorized patents has reached 45 (including 5 invention patents) and 8 software copyrights
which has greatly enhanced the Company's brand image and industrial competitiveness.
4. Rich experience in industrial exploration. The Company gives full play to its own advantages makes every effort to develop
the integrated energy service business field and continuously accumulates experience in the construction and operation of new
energy industries such as electrochemical energy storage photovoltaics and charging piles. Through the construction and
operation of energy storage black start projects photovoltaic projects MTC industrial and commercial energy storage project the
construction of Zhongshan independent energy storage power station and the development of integrated photovoltaic storage and
charging projects the Company has accumulated rich experience in the construction commissioning and operation & maintenance
of new energy and energy storage projects and has trained a group of professional and technical talents. In addition the talent
accumulation and technical advantages of the traditional power industry have prepared sufficient technical and talent resources for
the Company to enter the field of integrated energy service and laid a solid foundation.
5. Leading environmental protection level. The Company's generator units are all gas-fired generator units that use natural gas
as fuel. The CO2 emissions in flue gas are approximately 42% of those of coal-fired power plants providing strong support for the
national "carbon peaking and carbon neutrality" construction. In accordance with the requirements of the Shenzhen Municipal
People's Government 2018 'Shenzhen Blue' Sustainable Action Plan the Company fully completed the "Shenzhen Blue"
transformation of the #3 #10 and #1 gas turbines of Nanshan Power Plant. After the transformation the nitrogen oxide emissions
of each unit were reduced to less than 15mg/m3 reaching the world's most advanced level. Nanshan Power Plant was also selected
as the Top Plant Award by Power Magazine the most authoritative magazine in the global power industry founded in 1882.IV. Main business analysis
1. Overview
In 2024 the Company officially entered the integrated energy service business field. The Company has always adhered to the core
values of "professionalism and dedication innovation and efficiency courage and decisiveness harmony and mutual benefit"
took professionalism and dedication as the cornerstone deeply cultivated the integrated energy service business field and
continuously improved its professional ability and service level; driven by innovation and efficiency the Company actively
explored system and mechanism reform optimized processes and improved operation efficiency; with courage and boldness the
Company dares to break through and take responsibility when facing market competition and uncertainties; with harmony and
152024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
mutual benefit as the goal the Company works together with shareholders customers partners and employees to create value. The
main work carried out by the Company during the reporting period is as follows:
(1) Optimize the industrial layout and make new breakthroughs in transformation and development. In the current context of
accelerating restructuring of the global energy landscape and increasingly fierce market competition the Company has further
clarified its strategic direction of transformation to an integrated energy service provider based on industry trends market demand
and its own advantages. During the reporting period the Company closely focused on the strategic transformation direction made
every effort to expand the integrated energy service projects initially built the "investment construction operation management
and maintenance" platform and was committed to providing customers with more professional services and enhancing the
Company's core competitiveness. In the field of investment the Company completed the first investment of RMB 50 million in the
energy storage master fund and invested in the establishment of an energy storage sub-fund with a total scale of RMB 400 million.It plans to set up an energy storage company with a scale of RMB 200 million under the energy storage sub-fund which is
responsible for the investment of power station projects. The investment direction mainly includes independent energy storage
power stations industrial and commercial energy storage power stations and integrated light storage and charging stations.Shenzhen Nanshan Power Environmental Protection Company will coordinate with the resources within the Company's system to
do a good job in the operation and maintenance management of energy storage companies provide comprehensive and integrated
services for the development research and judgment investment construction operation and maintenance of fund power station
projects and promote the strategic layout of the Company in new energy and energy storage and other fields with the help of the
fund and accelerate the exploration and construction of integrated energy service business models. In the field of project
construction Shenzhen Nanshan Power Environmental Protection Company has seized the opportunity of the development of
energy storage industry and focused on the transformation to new energy and energy storage fields with new energy projects
flourishing in many places. During the construction of the MTC Industrial and Commercial Energy Storage Project Shenzhen
Nanshan Power Environmental Protection Company strictly controlled the project quality carefully optimized the project cost
improved the cost control system and refined the project standardized management process to complete the project construction
with high quality. After the project was officially put into operation the energy storage system operated efficiently and well and
the revenue was higher than expected laying a solid foundation for the Company to expand into the field of integrated energy
service. In the field of project operation and maintenance Shenzhen Nanshan Power Engineering Company with its years of
technical experience in gas turbine power station engineering construction and accumulated cooperation resources has given full
play to the advantages of technical personnel obtained the license qualification for contracting and commissioning power facilities
and focused on the relevant engineering service business in the field of gas turbine and new energy and has signed a number of
technical service contracts successively. In the Qinghai Golmud 300 MW Gas Turbine Power Station Project through providing
professional technical services to customers the Company successfully signed several contracts for project management
supervision EPCM management commissioning and operation and maintenance demonstrating the Company's profound
foundation in the field of project operation and maintenance. In the field of property lease management Xiefu Company seized the
opportunity in property lease management services. Facing the challenges of its shortfalls in professional capabilities it took the
initiative and quickly organized all its employees to participate in real estate business ability training comprehensively improved
market development ability property management ability and comprehensive service level. As a result the overall occupancy rate
has been steadily rising and its profitability has been continuously improving.
(2) Focus on increasing the efficiency of existing resources with comprehensive business capabilities reaching a new level.
During the reporting period the Company has always adhered to the enterprising attitude of hard work focused on its main
responsibilities and primary business actively implemented the concept of lean management with innovative thinking and active
awareness and was committed to improving the profitability of assets in stock revitalizing assets in stock and maximizing the
efficiency of assets. In terms of improving the operating capacity of assets in stock the Company dynamically adjusted the power
marketing and fuel procurement strategies scientifically coordinated the gas-electric matching and completed the on-grid energy
162024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
of 510 million KWH. At the same time the Company deeply studied the capacity tariff policy and actively strived for the income
of capacity tariff. In addition Shenzhen Nanshan Power Environmental Protection Company has achieved a remarkable
breakthrough in the power sales with a cumulative sales of 34.42 million KWH adding a new profit growth point for the
Company. In terms of revitalization of assets in stock the Company has made every effort to promote the land acquisition and
storage of Shenzhen Nanshan Power Zhongshan Company and on the one hand further optimized and adjusted the transfer
recovery land certificate cancellation and relocation compensation payment time of the land involved in the original Agreement
on the Recovery of State-Owned Land Use Rights and the Relocation Compensation Agreement signed a supplementary
agreement and realized the delivery of 190 mu of land in Plot A and received a total of RMB 220 million of compensation for
land acquisition and storage. On the other hand it made full use of the line assets of Shenzhen Nanshan Power Zhongshan
Company on the basis of the traditional project operation concept innovatively used the capital operation concept and proposed
an innovative solution for the reuse of existing facilities and the contribution of line assets according to which Shenzhen Nanshan
Power Zhongshan Company and Zhongshan Nanlang Construction Development Co. Ltd. jointly established a Project Company
to implement the construction of the 300 MW/600 MWh Independent Energy Storage Power Station (Phase I) in Cuiheng New
District Zhongshan City and built an independent energy storage power station with a scale of 100 MW/200 MWh which
effectively revitalized the assets in stock and significantly expanded the Company's energy storage industry layout. At the same
time the Company actively promoted the listing and transfer of generating unit equipment and related assets of Shenzhen Nanshan
Power Zhongshan Company optimized the listing plan in a timely manner according to market conditions actively expanded
potential buyer resources dynamically adjusted negotiation strategies and promoted the transaction process in multiple
dimensions and finally successfully delisted the unit equipment and related assets in March 2025; in addition Xiefu Company
successfully completed the listing and transfer of 40% equity of Huidong Xiefu and recovered RMB 57.89 million.
(3) Coordinate safety and development and build a new pattern of safety management. The Company has firmly established the
concept of safety development continuously improved the work safety guarantee system comprehensively implemented the main
responsibility consolidated the work safety foundation actively carried out work safety supervision and management made
efforts to ensure a stable work safety situation and continuously maintained the "five-no" safety goal which has laid a solid safety
foundation for the Company's steady progress. First sign the list of safety responsibilities improve the target management and
control measures and comprehensively clarify and carry out the safety management responsibilities. Implement the work safety
responsibility system for all employees strictly and meticulously implement work safety measures and firmly build the bottom
line of work safety. Second carry out safety management work in a solid manner and make every effort to resolve safety risks.Deepen the "three-year special action for fundamental improvement of work safety" actively implement self-examination and
self-correction of safety precautions and cross-checking comprehensively find out and dynamically grasp the bottom line of major
hidden dangers of work safety and promote the implementation of statutory responsibilities of enterprise leaders and work safety
responsibility system and promote the pre-prevention work safety governance model. Third go deep into the front line to carry
out service coordination and make every effort to strengthen safety supervision. Continuously strengthen the safety supervision of
the affiliated enterprises in the form of "leading group to the grassroots" and "Four No's and Two Directs" form a strong safety
culture atmosphere lay a solid foundation for work safety and promote the smooth development of various safety work.
(4) Highlight the improvement of efficiency and take new steps in market-oriented reform. The Company focuses on market-
oriented reform to stimulate the vitality of endogenous innovation and development. During the reporting period the Company
continued to improve the market-oriented salary incentive mechanism strengthen the performance-oriented assessment standards
and fully stimulate the initiative of the team; further promoted the performance-oriented culture continuously optimized the
incentive and restraint assessment mechanism for senior executives and innovatively implemented the "annual + term" dual-target
contractual management for senior executives; Establish a scientific and reasonable differentiated performance indicator
assessment system further strengthen the business performance indicators of affiliates and the performance assessment of the
Company's management personnel and create an incentive and constraint system focusing on value contribution. Continue to
172024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
improve the management efficiency of all links of talent selection cultivation and retention and adhere to the training and
selection of young management personnel as a strategic measure to lay a foundation for long-term benefits; strengthen campus
recruitment and promote the transformation of talent introduction to recruit more professional and younger employees; strengthen
talent training focus on improving the comprehensive ability of management personnel and employees of the Company and
implement targeted policies to improve the quality and efficiency of comprehensive training. Optimize and improve the market-
oriented management and control mode of affiliates formulate a list of powers and responsibilities for each enterprise according to
its specific situation scientifically and reasonably delegate authority realize the equivalence of rights responsibilities and benefits
and effectively improve the operational efficiency and innovation ability of affiliates.
(5) Focus on scientific and efficient methods and achieve new results in management system reform. Adhering to the principle
of "building a firm foundation whole-chain coordination gradual deepening and focusing on practical results" the Company has
comprehensively reformed the management system and mechanism to build a solid foundation for the transformation and
development of the Company. During the reporting period the Company completed the re-election of the Board of Directors and
the Board of Supervisors further improved the Company's legal person governance structure and vigorously promoted the
standardization of the legal person governance process of its affiliates to improve the overall legal person governance level of the
Company; continuously optimized its institutional system actively carried out the construction of process standardization system
completed the construction of its process standardization management system framework and effectively improved the its
standardized management level; deepened the construction of compliance system organized all affiliates to build a compliance
audit mechanism for key processes and key decision-making matters and strengthened compliance management; strengthened
audit supervision paid attention to risk prevention and control in key areas paid close attention to the implementation of audit
rectification by carrying out special audits such as economic benefit audit economic responsibility audit and procurement audit
and promoted the improvement of the Company's risk prevention and control level; continuously consolidated the accounting
system strengthened the foundation of financial and tax management promoted comprehensive budget management with high
standards improved the effectiveness and efficiency of financial services further optimized the capital management mechanism
and continuously improved the capital structure of the Company.
(6) Strengthen organizational support and continuously strengthen the building of Party organizations. The Company adheres to
the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era firmly grasps the general
requirements of Party building in the new era focuses on the key links of the Company's operation management and reform and
development promotes the deep integration of party building work and business and provides a solid political guarantee for the
Company's high-quality development. First strengthen the political leadership of Party organizations. The Company has
successfully completed the high-standard election of the Party Committee and Discipline Inspection Commission while refining
the leadership mechanism of "two-way entry and cross-appointment" to achieve organic unity between Party leadership and
corporate governance. The Company has resolutely implemented the request-for-instructions and reporting system for major
matters ensuring the Party organization fully exercises its leadership role insetting direction managing overall situations and
guaranteeing implementation. Second strengthen the ideological leadership of the Party organization. The Company has
thoroughly studied and implemented the spirit of the Third Plenary Session of the 20th CPC Central Committee strictly
implemented the "First Topic" system and refined the Party Committee Theoretical Study Center Group learning mechanism. The
leading group of the Party Committee has carried out in-depth special research on key topics established and improved
mechanisms for translating study outcomes into practice and effectively improved the effectiveness of ideological guidance. Third
improve the Party organization's capacity to mobilize the masses. The Company has meticulously developed the "Party-building+"
mechanism and carried out a series of "Party-building + Culture" activities. By focusing on diverse groups such as frontline
employees and young staff it enriched workers' spiritual and cultural lives through varied activities effectively achieving
ideological unity and cohesion of collective strength.
182024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
In 2024 the Company reported an operating revenue of RMB 442.972 million and net profit attributable to shareholders of the
listed company of RMB 21.9088 million maintaining profitability after achieving a turnaround against market headwinds in 2023
with basic earnings per share standing at RMB 0.0363.
2. Revenue and costs
(1) Composition of operating revenue
Unit: RMB
20242023
Proportion to Proportion to Year-on-year increase or
Amount operating Amount operating decrease
revenue revenue
Total operating
442971955.85100%589780190.71100%-24.89%
revenue
By sector
Power industry 437329918.38 98.73% 588370570.20 99.76% -25.67%
Others 5642037.47 1.27% 1409620.51 0.24% 300.25%
Total 442971955.85 100.00% 589780190.71 100.00% -24.89%
By product
Power production and
419930286.7194.80%562688722.9195.41%-25.37%
sale
Integrated energy
39382694.078.89%42299536.017.17%-6.90%
service
Others 5768308.02 1.30% 1468149.52 0.25% 292.90%
Consolidation offset -22109332.95 -4.99% -16676217.73 -2.83% -32.58%
Total 442971955.85 100.00% 589780190.71 100.00% -24.89%
By region
Domestic 442971955.85 100.00% 589780190.71 100.00% -24.89%
Total 442971955.85 100.00% 589780190.71 100.00% -24.89%
Sales mode
Direct sales 442971955.85 100.00% 589780190.71 100.00% -24.89%
Total 442971955.85 100.00% 589780190.71 100.00% -24.89%
(2) Industries products regions and sales models that account for more than 10% of the Company's operating revenue or
operating profit
□Applicable □ Not applicable
The Company shall comply with the disclosure requirements for power supply industry in the Shenzhen Stock Exchange Listed
Company Self-Regulatory Guidelines No. 3 - Industry Information Disclosure
Unit: RMB
Year-on-year
Year-on-year Year-on-year
increase or
Operating Gross increase or increase or
Operating costs decrease in
revenue margin decrease in decrease in
operating
operating costs gross margin
revenue
By sector
Power industry 437329918.38 414222881.99 5.28% -25.67% -28.73% 4.06%
192024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Others 5642037.47 1223850.40 78.31% 300.25% 367.65% -3.13%
Total 442971955.85 415446732.39 6.21% -24.89% -28.55% 4.80%
By product
Power production
419930286.71405194367.483.51%-25.37%-29.18%5.18%
and sale
Integrated energy
39382694.0728530461.1027.56%-6.90%13.78%-13.16%
service
Others 5768308.02 1223850.40 78.78% 292.90% 367.65% -3.39%
Consolidation
-22109332.95-19501946.59-32.58%-21.80%
offset
Total 442971955.85 415446732.39 6.21% -24.89% -28.55% 4.80%
By region
Domestic 442971955.85 415446732.39 6.21% -24.89% -28.55% 4.80%
Total 442971955.85 415446732.39 6.21% -24.89% -28.55% 4.80%
Sales mode
Direct sales 442971955.85 415446732.39 6.21% -24.89% -28.55% 4.80%
Total 442971955.85 415446732.39 6.21% -24.89% -28.55% 4.80%
Reasons for major changes in relevant financial indicators
□ Applicable □Not applicable
(3) Whether the Company's physical sales revenue is greater than its labor service revenue
□Yes □No
Year-on-year
Industry Item Unit 2024 2023 increase or
decrease
Sales volume 100 million KWH 5.10 6.54 -22.02%
Power industry Production 100 million KWH 5.12 6.57 -22.07%
Inventory 100 million KWH 0.00 0.00
Explanation for relevant data changed by more than 30% year-on-year
□ Applicable □Not applicable
(4) Performance of the major sales contracts and major procurement contracts signed by the Company as of the reporting
period
□ Applicable □Not applicable
(5) Composition of operating costs
Industry classification
Unit: RMB
2024 2023 Year-on-year
Industry Item Proportion to Proportion to increase or
Amount Amount
operating costs operating costs decrease
334421830.9
Power industry Fuel 80.50% 470823746.78 80.98% -28.97%
8
202024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Employee
Power industry 24415894.99 5.88% 39310209.34 6.75% -37.89%
compensation
Manufacturing
Power industry 55385156.02 13.33% 71046886.25 12.22% -22.04%
cost
Other non-
primary Others 1223850.40 0.29% 261701.61 0.05% 367.65%
business
(6) Whether there are changes in the consolidation scope during the reporting period
□Yes □No
In July 2024 Shenzhen Nanshan Power Zhongshan Company contributed RMB 51 million (accounting for 51%) in kind to jointly
establish Shenzhen Nanshan Power Xiwan Energy (Zhongshan) Co. Ltd. with Zhongshan Nanlang Construction Development Co.Ltd. The project company was included in the scope of consolidated statements of the Company during the reporting period.
(7) Significant changes or adjustments to the Company's business products or services during the reporting period
□ Applicable □Not applicable
(8) Major sales customers and major suppliers
The Company's main sales customers
Total sales amount of top five customers (RMB) 437747218.87
Ratio of the total sales amount of the top five customers to total annual sales 98.82%
Ratio of sales to related parties in the annual total sales of the top five customers 1.20%
Information on the Company’s top 5 customers
No. Customer name Sales (RMB) Ratio to total annual sales
1 Shenzhen Power Supply Bureau Co. Ltd. 419942071.51 94.80%
2 China Machinery Engineering Corporation 8396522.89 1.90%
3 Shenzhen Energy Corporation 4155080.27 0.94%
PetroChina Company Limited Qinghai Oilfield
44096132.080.92%
Company
5 Shenzhen MTC Co. Ltd. 1157412.12 0.26%
Total - 437747218.87 98.82%
Other information on major customers
□Applicable □ Not applicable
Shenzhen Energy Corporation and Shenzhen MTC Co. Ltd. are affiliated legal persons of the Company.The Company's main suppliers
Total purchase amount of top five suppliers (RMB) 359774622.94
Ratio of the total purchase amount of the top five suppliers to the total
83.54%
annual purchase amount
Ratio of purchase amount of related parties among the top five suppliers
0.00%
to the total annual purchase amount
212024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Information on the Company's top 5 suppliers
Ratio to total annual
No. Supplier name Purchase amount (RMB)
purchase amount
1 Shenzhen Gas Group Co. Ltd. 314701539.09 73.07%
CNOOC Gas & Power Group Guangdong
219720291.894.58%
Company
3 Shenzhen Power Supply Bureau Co. Ltd. 11333832.48 2.63%
Yotai Digital Energy Technology (Shenzhen)
47864648.451.83%
Co. Ltd.Shenzhen Zhongshenli Development
56154311.031.43%
Technology Co. Ltd.Total - 359774622.94 83.54%
Other information on major suppliers
□ Applicable □Not applicable
3. Cost
Unit: RMB
Year-on-year
2024 2023 Description of significant changes
increase or decrease
Selling and distribution
3155604.582831748.6511.44%
expenses
Mainly due to: first the
performance bonus was settled due
to changes in operating conditions
in the previous year resulting in a
decrease in employee compensation
in the current year; second
G&A expenses 95507099.03 58330596.87 63.73%
according to the development needs
of the Company's strategic
transformation and new business to
strengthen the construction of the
management system the relevant
expenses have increased this year.Mainly due to the Company's
continuous optimization of asset
and liability structure and reduction
Financial expenses 6815765.10 11579637.38 -41.14%
in financing scale resulting in a
year-on-year decrease in financial
expenses.R&D expenses 21341778.27 26839912.74 -20.48%
4. R&D investment
□Applicable □Not applicable
Expected impact on the
Name of main R&D
Purpose Progress Goals to be achieved Company's future
project
development
Research and Conduct research and Achieve the diversified Improve the safety and
Development of Power development of the Completed application of power reliability of the
Access System for photovoltaic power supply access methods production operation
222024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Intelligent Operation access system change of gas turbine power and maintenance of
and Maintenance of the traditional single plants realize the safe unit equipment and
Photovoltaic Power power supply mode use of the access enhance the scientific
Gas Turbine Power and improve the access method of "self- and technological
Plant system performance; consumption and content and core
reduce operation and surplus power on the competitiveness of the
maintenance costs and grid" for photovoltaic Company's products
ensure the stable power generation in the and services.operation of local traditional power
power grids. system and reduce
energy consumption.Improve the
performance of the
Through research and
equipment optimize
development optimize Complete the structural
Research and the system structure of
the cooling water optimization of the gas
Development of the equipment reduce
pipeline structure turbine cooling water
Cooling Water costs and improve the
improve the direction Completed system and adopt new
Recycling System for scientific and
of the cooling water technologies to
Gas Turbine Power technological content
pipeline realize improve economic
Plants and core
recycling and reduce benefits.competitiveness of the
costs.Company's products
and services.Optimize and improve
Through research and Complete the
the performance of the
development optimize performance upgrade
equipment improve
Research and the control method of and update of the
the operating efficiency
Development of boiler centralized centralized cooling
of the equipment and
Control Method for cooling improve the system of the waste
Completed enhance the scientific
Central Cooling efficiency of heat boiler
and technological
System of Gas Turbine equipment cooling and innovatively use
content and core
Waste Heat Boiler improve the economy excellent technologies
competitiveness of the
of equipment and reduce energy
Company's products
operation. consumption.and services.Optimize the intelligent Improve equipment
Through the research
access system of the performance through
and development of the
vehicle charging pile research optimize the
Research and intelligent access
effectively use new reliability of
Development of system of the charging
data parameters to photovoltaic system
Intelligent Access pile optimize the
improve the operation and improve
System for NEV system parameters to Completed
comprehensive the scientific and
Charging Pile With improve the
performance and technological content
Photovoltaic Power automation of the
improve the reliability and core
Generation access system and the
of the photovoltaic competitiveness of the
reliability of the
charging access Company's products
operation.system. and services.Actively develop new
Through research and
design technologies
development optimize Optimize the
improve the
the turbine power equipment in design
Research and performance and safety
switching device in and application
Development of of unit equipment and
design and application improve the
Intelligent Control Completed enhance the scientific
improve the AC power performance of grid
System for Turbine and technological
supply performance of power supply and
Power Supply content and core
the power grid and improve the operation
competitiveness of the
improve the safety of safety of equipment.Company's products
equipment operation.and services.
232024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Research the
technological and
innovative application
Conduct research and
in equipment use new
development on the 6 Complete the
technologies to reduce
Research and KV auxiliary power innovative upgrade of
hidden dangers in
Development of 6 KV rapid switching system the 6 KV auxiliary
equipment operation
Auxiliary Power Rapid for the gas turbine to power rapid switching
Completed improve equipment
Switching System for eliminate the hidden system of the gas
performance and
Gas Turbine Power dangers and risks of the turbine to ensure the
enhance the scientific
Plants equipment and improve safe operation of the
and technological
the operation reliability unit equipment.content and core
of the unit.competitiveness of the
Company's products
and services.Through the research Optimize the
on the adjustable performance of the
Complete the
negative pressure equipment eliminate
upgrading and
Research and system in the gas hidden dangers
reconstruction of the
Development of turbine oil tank ensure improve the safety of
negative pressure
Adjustable Negative the safe operation of the equipment and
Completed adjustable system of
Pressure System the gas turbine oil tank improve the scientific
the gas turbine oil tank
Device for 9E Gas eliminate the risk of oil and technological
to ensure the safe and
Turbine Oil Tank leakage and fire and content and core
stable operation of the
improve the safety of competitiveness of the
unit.the unit equipment Company's products
operation. and services.R&D staff
2024 2023 Change ratio
Number of R&D staff 86 87 -1.15%
Proportion of number of R&D
29.45%30.63%-1.18%
staff
Educational structure of R&D staff
Undergraduate 52 47 10.64%
Postgraduate 2 1 100.00%
Age composition of R&D staff
Under 30 years old 16 16 0.00%
30-40 years old 10 10 0.00%
Over 40 years old 60 61 -1.64%
R&D investment of the Company
2024 2023 Change ratio
Amount of R&D investment
21341778.2726839912.74-20.48%
(RMB)
Ratio of R&D investment in
4.82%4.55%0.27%
the operating revenue
Amount of R&D investment
0.000.000.00%
(RMB)
Ratio of capitalized R&D
investment in R&D 0.00% 0.00% 0.00%
investment
242024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Reasons and impacts of major changes in the Company's R&D staff composition
□ Applicable □Not applicable
Reasons for the significant change in the proportion of total R&D investment in operating revenue compared with the previous
year
□ Applicable □Not applicable
Reasons for substantial changes R&D investment capitalization rates and their rationale
□ Applicable □Not applicable
5. Cash flow
Unit: RMB
Year-on-year increase or
Item 2024 2023
decrease
Sub-total of cash inflows from operating activities 552472905.42 739641073.57 -25.31%
Sub-total of cash outflows from operating activities 590108671.47 840013050.49 -29.75%
Net cash flows from operating activities -37635766.05 -100371976.92 62.50%
Sub-total of cash inflows from investing activities 592454642.68 749228184.97 -20.92%
Sub-total of cash outflows from investing activities 292298619.89 456538387.59 -35.98%
Net cash flows from investing activities 300156022.79 292689797.38 2.55%
Sub-total of cash inflows from financing activities 484026209.56 421093926.90 14.94%
Sub-total of cash outflows from financing activities 586252718.34 950780554.86 -38.34%
Net cash flows from financing activities -102226508.78 -529686627.96 80.70%
Net increase in cash equivalents 160332202.10 -337286752.50 147.54%
Explanation of the main factors affecting significant year-on-year changes in relevant data
□Applicable □ Not applicable
(1)During the reporting period the cash outflow from operating activities decreased by 29.75% year-on-year mainly because
Shenzhen Nanshan Power Zhongshan Company no longer engaged in power production due to land acquisition and storage and
the approved unit shutdown which reduced the cash outflow due to the inverted cost price of gas-fired electricity; at the same time
due to the Company's strengthening of comprehensive budget control and vigorously implementing management measures to
reduce costs and increase efficiency the cost control level has increased through the implementation of intensive procurement and
the reduction of variable costs.
(2) During the reporting period the net cash flows from operating activities increased by 62.5% year-on-year mainly due to the
Company's strengthening of working capital management the recovery of accounts receivable from the integrated energy service
business in previous years by Shenzhen Nanshan Power Engineering Company and the cessation of power production and sale
business by Shenzhen Nanshan Power Zhongshan Company resulting in a year-on-year decrease in cash outflows from operating
activities.
(3) During the reporting period the cash outflow from investing activities decreased by 35.98% year-on-year mainly due to the
year-on-year decrease in the structured deposits of the Company's stock funds in commercial banks and the year-on-year decrease
in the cash outflow from investing activities.
252024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
(4) During the reporting period the cash outflow from financing activities decreased by 38.34% year-on-year mainly due to the
optimization of the Company's asset and liability structure and the decrease in cash paid for debt repayment resulting in the
decrease in cash outflow from financing activities year-on-year.
(5) During the reporting period the net cash flows from financing activities increased by 80.7% year-on-year mainly due to the
fact that the Company revitalized the line assets and resources of Shenzhen Nanshan Power Zhongshan Company after land
acquisition and storage and unit shutdown the newly established Shenzhen Nanshan Power Xiwan Company received the paid-in
capital from external shareholders and the cash paid for debt repayment decreased year-on-year resulting in the increase in net
cash flows from financing activities year-on-year.
(6) During the reporting period the net increase in cash and cash equivalents increased by 147.54% year-on-year mainly due to:
first the revitalization of the Company's assets in stock was remarkable Shenzhen Nanshan Power Zhongshan Company received
the progress payment for land acquisition and storage and Xiefu Company completed the equity transfer of Huidong Xiefu;
second the Company strengthened working capital management and Shenzhen Nanshan Power Engineering Company received
accounts receivable from integrated energy service business in previous years; third the Company revitalized the line assets and
resources of Shenzhen Nanshan Power Zhongshan Company and the newly established Shenzhen Nanshan Power Xiwan
Company received the paid-up capital contribution from external shareholders; in addition the cash paid by the Company to repay
debts decreased year-on-year and the comprehensive impact on the net increase in cash and cash equivalents increased year-on-
year.Explanation of the reasons for the significant difference between the net cash flow generated by the Company's operating activities
during the reporting period and net profit for the year
□Applicable □ Not applicable
During the reporting period the net cash flow from operating activities of the Company was -RMB 37.6358 million which was
significantly changed from the net profit of RMB 63.9274 million in the current year. It was mainly due to the comprehensive
impact of non-cash expenses such as gains from disposal of assets investment income asset impairment loss losses from credit
impairment amortization of deferred income changes in operating receivables and payables depreciation and amortization and
financial expenses. The main items are as follows:
(1) The gain from disposal of assets of RMB 163.53 million was included in the net profit of the current year but did not affect the
net cash flow from operating activities;
(2) The investment income of RMB 84.4883 million was included in the net profit of the current year but did not affect the net
cash flow from operating activities;
(3) The asset impairment loss of RMB 66.3895 million was included in the net profit of the current year but did not affect the net
cash flow from operating activities;
(4) In the current year the Company received accounts receivable of RMB 50.3205 million for integrated energy services in
previous years which increased the net cash flow from operating activities but did not affect the net profit of the current year;
(5) The interest cost of RMB 11.8295 million was included in the net profit of the current year but did not affect the net cash flow
from operating activities.V. Analysis of non-main business
□Applicable □ Not applicable
Unit: RMB
262024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Ratio in total
Amount Explanation of causes Sustainability
profit
The investment
Mainly from the investment income
income
obtained by the transfer of 40% equity of
recognized and
Huidong Xiefu by Xiefu Company the
accounted for
investment income obtained by the
Investment income 84488299.90 114.77% under the equity
structured deposits held by the Company
method for the
and the investment income recognized and
participated
accounted for under the equity method for
companies is
the participated companies.sustainable
Mainly due to the asset impairment losses
recognized in accordance with the
transaction status of the listed power
generation unit equipment and related
Asset impairment -66389539.68 -90.18% No
assets of Shenzhen Nanshan Power
Zhongshan Company after the land
acquisition and storage and the
decommissioning of the generating units.Mainly from the gains from disposal of
assets of Plot A that has been derecognized.This is because Shenzhen Nanshan Power
Zhongshan Company completed the
Gains from disposal of
163529971.97 222.14% cancellation of the land use rights and No
assets
building structures within the scope of land
acquisition and storage as well as the
confirmation of the transfer of the land of
Plot A in this year.Non-operating revenue 553068.40 0.75% No
Non-operating expenses 135334.48 0.18% No
VI. Analysis of assets and liabilities
1. Major changes in asset composition
Unit: RMB
End of 2024 Beginning of 2024 Increase
or
Ratio of Ratio of
decrease
Description of significant changes
Amount total Amount total in
assets assets proporti
on
First the company actively
promoted the revitalization of
assets in stock. Shenzhen Nanshan
Power Zhongshan Company
completed the handover
confirmation of Plot A and
received the progress payment of
Monetary
478979221.66 23.80% 316188782.49 15.43% 8.37% land acquisition and storage; Xiefu
funds
Company completed the equity
transfer of Huidong Xiefu and
recovered the equity transfer
payment; second the Company
strengthened working capital
management and Shenzhen
Nanshan Power Engineering
272024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Company recovered the accounts
receivable of the integrated energy
service business in previous years;
third the Company revitalized the
line assets of Shenzhen Nanshan
Power Zhongshan Company and
the newly established Shenzhen
Nanshan Power Xiwan Company
received paid-in capital
contribution from external
shareholders resulting in an
increase in monetary funds.Mainly due to the Company's
strengthening of working capital
management and the recovery of
Accounts accounts receivable of previous
67817025.913.37%111975251.105.46%-2.09%
receivable years' integrated energy service
business in the current period
resulting in a decrease in accounts
receivable.Contract
95580.680.00%88000.000.00%0.00%
assets
Inventories 80234374.79 3.99% 86158251.16 4.20% -0.21%
Investment
1498009.840.07%1664566.600.08%-0.01%
properties
Long-term
equity 90587521.44 4.50% 90001176.04 4.39% 0.11%
investments
Mainly due to the fact that
according to the land acquisition
and storage agreement of
Shenzhen Nanshan Power
Zhongshan Company the houses
and buildings and other assets
included in the scope of
acquisition and storage in the
Fixed assets 451203790.97 22.42% 571482734.35 27.89% -5.47%
current period were transferred to
the assets held for sale and the
asset impairment loss of the
generating unit equipment and
related assets of Shenzhen
Nanshan Power Zhongshan
Company was accrued resulting
in a decrease in fixed assets.Construction
6983713.850.35%3448855.100.17%0.18%
in progress
Right-of-use
6160020.430.31%2266946.420.11%0.20%
assets
Mainly due to the optimization of
Short-term the asset and liability structure and
268615009.1913.35%341237886.7216.65%-3.30%
borrowings the repayment of short-term
borrowings in the current period.Contract
50000.000.00%0.000.00%0.00%
liabilities
Mainly due to the optimization of
Long-term the asset and liability structure and
0.000.00%58829426.302.87%-2.87%
borrowings the repayment of long-term
borrowings in the current period.Lease
2125910.180.11%0.000.00%0.11%
liabilities
282024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Mainly due to the compensation
for Plot B received by Shenzhen
Nanshan Power Zhongshan
Company due to land acquisition
Other current
107922984.82 5.36% 0.00 0.00% 5.36% and storage. Plot B has not been
liabilities
handed over and the received
compensation has been
reclassified to other current
liabilities.Mainly due to the transfer of 40%
equity of Huidong Xiefu by Xiefu
Estimated
0.00 0.00% 15000000.00 0.73% -0.73% Company the equity pledge was
liabilities
released and the relevant
estimated liabilities were reversed.Financial Mainly due to the redemption of
assets held for 0.00 0.00% 226000000.00 11.03% -11.03% structured deposits purchased with
trading stock funds.Mainly due to the fact that
according to the latest progress of
land acquisition and storage of
Other non- Shenzhen Nanshan Power
current 0.00 0.00% 104045112.54 5.08% -5.08% Zhongshan Company the land
liabilities compensation price received for
Plot B of the land has been
reclassified to other current
liabilities.Mainly due to the fact that
according to the land acquisition
and storage agreement of
Shenzhen Nanshan Power
Zhongshan Company in the
current period assets such as
Assets held for
24582784.59 1.22% 0.00 0.00% 1.22% building structures and land use
sale
rights within the scope of land
acquisition and storage were
transferred to assets held for sale
according to the transfer list
resulting in an increase in assets
held for sale.Mainly due to the fact that
according to the land acquisition
and storage agreement of
Shenzhen Nanshan Power
Zhongshan Company the income
Other
131831575.62 6.55% 19233117.52 0.94% 5.61% from the land acquisition and
receivables
storage of Plot A was recognized
in the current period leading to an
increase in the accounts receivable
related to the land acquisition and
storage.Mainly due to the fact that
according to the land acquisition
and storage agreement of
Shenzhen Nanshan Power
Zhongshan Company in the
Intangible current period the land use rights
1349731.810.07%19285629.030.94%-0.87%
assets within the scope of land
acquisition and storage were
transferred to assets held for sale
according to the transfer list
resulting in a decrease in
intangible assets.Other Mainly due to the Company's new
investments in investment in Shenzhen New
354798054.5717.63%300615000.0014.67%2.96%
equity Energy Storage Industry Equity
instruments Fund and the increase in
292024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
investments in other equity
instruments in the current period.Mainly due to the payment of
employee resettlement
compensation related to land
Employee acquisition and storage of
compensation 16052879.47 0.80% 46238982.57 2.26% -1.46% Shenzhen Nanshan Power
payable Zhongshan Company in the
current period resulting in a
decrease in employee
compensation payable
Overseas assets account for a high proportion
Applicable □Not applicable
2. Assets and liabilities measured at fair value
□Applicable □ Not applicable
Unit: RMB
Profit or
Provision
loss from Cumulative
for Purchase Sales
changes in changes in
Beginning impairme amount of amount the Other Ending
Item fair value fair value
balance nt of the the current current changes balance
of the included in
current period period
current equity
period
period
Financial assets
1. Financial
assets held
for trading
226000000.22600000
(excluding 0.00
000.00
derivative
financial
assets)
2.
Derivative
financial
assets
3. Other
debt
investment
s
4.
Investment
300615000.4183054.1683054.550000000.35479805
s in other
00577004.57
equity
instruments
5. Other
non-current
financial
assets
Subtotal of
302024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
financial
assets
Investment
properties
Others
526615000.4183054.1683054.550000000.2260000035479805
Total
00577000.004.57
Financial
0.000.00
liabilities
Whether there are significant changes in the measurement attributes of the Company's main assets during the reporting period
□Yes □No
3. Restrictions of asset rights as of the end of the reporting period
Balance at the end of the previous year Item Ending balance (RMB)
(RMB)
L/G deposit 7912100.00 5453862.93
Total 7912100.00 5453862.93
VII. Investment status analysis
1. Overall situation
□Applicable □Not applicable
Investment amount during the reporting Investment amount during the same
Range of change
period (RMB) period last year (RMB)
101000000.000.00100.00%
2. Major equity investments acquired during the reporting period
□Applicable □Not applicable
Unit: RMB
Profit
or
Progr loss
Date
ess as of Litig Discl
Nam Inves Inves Share Inves Expe of
Main Sourc Prod of the inves ation osure
e of tment tment holdi Partn tment cted discl
busines es of uct balan tment invol index
inves meth amou ng er perio earni osure
s funds type ce in the ved (if
tee od nt ratio d ngs (if
sheet curre or not any)
any)
date nt
perio
d
Shen Engage Not Self- Shen The Inves Octo Anno
1000
zhen in avail 1.54 owne zhen inves ted ber unce
0000 Fund 0.00 No
New equity able % d Capit tment 5000 18 ment
0.00
Ener invest due funds al perio 0000 2023; No.:
312024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
gy ments to Holdi d is .00 Febru 2023-
Stora invest short ngs ten ary 039;
ge ment establ Co. years 23 2024-
Indus manage ishm Ltd. and Marc 0120
try ment ent Shen the h 19 14
Equit asset time zhen exit 2024
y manage Long perio
Fund ment hua d is
Partn and Indus five
ershi other trial years.p activiti Capit The
(Limi es with al exten
ted private Inves sion
Partn funds tment of the
ershi Co. opera
p) Ltd. tion
etc. perio
d
shall
be
revie
wed
by
the
gener
al
meeti
ng of
partn
ers.Energy
storage
technol
Shen ogy
zhen service
Zhon
Nans s; solar
Not gshan
han power
avail Nanl Preli
Powe generat
able ang Limit minar Anno
r ion
due Contr Const ed y unce
Xiwa technic 5100 July
to 51.00 ibutio ructio Long liabili const ment
n al 0000 0.00 No 19
short % n in n term ty ructio No.:
Ener service .00 2024
establ kind Deve comp n has 2024-
gy s; sales
ishm lopm any starte 048
(Zho of
ent ent d
ngsha photov
time Co.n) oltaic
Ltd.Co. equipm
Ltd. ent and
compo
nents
etc.Shen Engage Not Shen The Anno
zhen in avail Self- zhen inves Octo unce
2600
Yuan equity able 6.50 owne Yuan tment ber ment
0000 Fund No
zhi invest due % d zhi perio 25 No.:.00
Zhon ments to funds Energ d is 5 2024 2024-
gkai invest short y years 060
322024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Ener ment establ Stora and
gy manage ishm ge the
Stora ment ent Priva exit
ge asset time te perio
Tech manage Fund d is 3
nolog ment Mana years
y and geme ; the
Innov other nt exten
ation activiti Co. sion
Priva es with Ltd. of the
te private Shen opera
Fund funds zhen tion
Partn New perio
ershi Energ d
p y shall
(Limi Stora be
ted ge revie
Partn Indus wed
ershi try by
p) Equit the
y gener
Fund al
Partn meeti
ershi ng of
p partn
(Limi ers
ted and
Partn can
ershi be
p) exten
etc. ded
for 2
years.
3. Major ongoing non- equity investments during the reporting period
□Applicable □Not applicable
4. Financial assets investment
(1) Securities investment situation
□Applicable □Not applicable
The Company had no securities investments during the reporting period.
(2) Derivatives investment situation
□Applicable □Not applicable
The Company had no derivative investments during the reporting period.
5. Usage of raised funds
□Applicable □Not applicable
332024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
The Company has not used the raised funds during the reporting period.VIII. Major asset and equity sales
1. Sale of major assets
□Applicable □Not applicable
Whet
her it
is
imple
Net
ment
profit
ed as
contri
plann
buted
ed
by
and
the
as
asset Ratio Relat
Whet sched
to the of net ionsh
her Whet uled.listed profit ip
have her If it
comp contri with
Trans all all is not
any buted Whet the
actio the the imple
from by her it count
n Impact of prope claim ment
the asset is erpart
Coun Date price the sale on Pricing rty s and ed as Discl Discl
Asset begin sales relate y
terpar of s the principles of rights debts plann osure osure
s sold ning to the d (appli
ty sale (RM Company asset sale of the invol ed date index
of the listed trans cable
B (Note 3) assets ved the
curre comp actio to
1000 invol have reaso
nt any ns relate
0) ved been ns
perio in the d
been transf and
d to total trans
transf erred the
the net actio
erred meas
date profit ns)
ures
of
the
sale
Com
(RM
pany
B
has
1000
taken
0)
shoul
d be
expla
ined.Cuih Shen It is Nove
Anno
eng zhen conducive mber
Based on the unce
New Nans to 8
asset ment
Distri han revitalizing Dece
appraisal No.:
ct Powe the Non- mber
Dece results it 2023-
Mana r Company's relate 15
mber 5844 1305 177.3 shall be 048
geme Zhon assets in No d No No Yes and
12 5.35 8.77 9% determined 052
nt gshan stock partie Dece
2023 after 053;
Com Com improving s mber
consultation 2024-
mitte pany its 20
by the 0270
e has operating 2023;
Parties. 6207
Zhon three cash flows April
6。
gshan state- relieving 13
342024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
City owne its Nove
d operating mber
land pressure 6
use supporting Dece
right it to better mber
locat focus on 28
ed in transforma 2024.Heng tion and
men developme
Indus nt and is
trial in line with
Zone the
Nanl Company's
ang strategic
Street developme
nt plan.Cuih
eng
New
Distri
ct
Zhon
gshan
City
It is
conducive
to ensuring
Gene
the smooth
rating
completion The transfer
units
of land shall be
and
acquisition made
auxili
and storage through
ary
Fujia work of public listing Anno
equip Dece
n Shenzhen on the unce
ment Non- mber
Heng - Nanshan Shenzhen ment
of Marc - relate 7
jing 6372 5118 Power United No.:
Shen h 4 69.53.63 No d No No Yes 2024 Inves .69 Zhongshan % Property and 2024-zhen 2025 partie Marctment Company Equity 070
Nans s h 6
Co. revitalizing Exchange 2025-
han 2025
Ltd. assets in with the asset 002.Powe
stock and evaluation
r
helping the value as the
Zhon
Company's base price for
gshan
transforma listing.Com
tion and
pany
developme
nt.
2. Sale of major equity interests
□Applicable □Not applicable
Trans Net Propo Pricing Whet Relati Whet Whet
Count Date Impact of the Disclo Disclo
Equit action profit rtion principles her it onshi her her it
erpart of sale on the sure sure
y sold prices contri of net for equity is p with the is
y sale Company date index
(RMB buted profit sale relate the equity imple
352024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
1000 by the contri d count involv mente
0) equity buted transa erpart ed has d as
to the by the ctions y been plann
listed equity transf ed
comp sold erred and as
any to the in full sched
from total uled.the net If it is
begin profit not
ning of the imple
of the listed mente
curren comp d as
t any plann
period ed
to the the
date reason
of s and
sale the
(RMB measu
1000 res
0) the
Comp
any
has
taken
shoul
d be
explai
ned.It is conducive
to Xiefu
The transfer
Company to
shall be
revitalize
made
existing
through
resources
public
improve the Septe
Huizh listing on Anno
efficiency of mber
ou 40% the unce
asset operation Non- 12
Port equity Shenzhen ment
Octob reduce capital relate Not Octob
Invest of 5788. 2867. 38.95 United No.:
er 25 pressure make No d Yes applic er 30
ment Huido 77 05 % Property and 2024-
2024 full use of the partie able Dece
Group ng Equity 055
recovered s mber
Co. Xiefu Exchange 061
funds improve 3
Ltd. with the 066;
business 2024
asset
conditions and
evaluation
contribute to
value as the
the Company's
base price
transformation
for listing.and
development.IX. Analysis of major holding and joint-stock companies
□Applicable □Not applicable
Information about major subsidiary and joint-stock companies that affect the Company's net profit by more than 10%
362024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Unit: RMB 10000
Company Company Registered Total Operating Operating Net
Main business Net assets
name type capital assets revenue profit profit
Gas turbine power
generation waste
heat power
generation power
supply and heat
supply (excluding
heat supply pipe
Shenzhen
networks) wharves
Nanshan
oil depots (excluding
Power
Subsidiary refined oil 74680 31607.11 -41612.01 1111.38 6677.92 6687.63
(Zhongshan)
hazardous chemicals
Power Co.and flammable and
Ltd.explosive products)
and lease of power
equipment and
facilities; Land use
rights lease;
Nonresidential real
estate lease.Import and export
business of goods
and technology
Shenzhen domestic trade
Xiefu Energy Subsidiary (excluding 5330 14365.84 13328.90 536.41 6574.86 5660.82
Co. Ltd. exclusive
controlled and
monopolized goods);
lease business etc.Technology
development of
waste heat utilization
Shenzhen
(excluding restricted
New Power -
Subsidiary items): waste heat 11385 26438.73 25320.40 9730.61 -2329.82
Industrial Co. 2329.85
utilization for power
Ltd.generation gas
turbine power
generation.Technical consulting
services of
construction
engineering for gas-
steam combined
cycle power plant
(stations)
maintenance and
overhaul of
Shenzhen
operating equipment
Nanshan
for gas-steam
Power Gas
combined cycle
Turbine -
Subsidiary power plant 1000 4877.49 1436.59 3709.35 -2062.07
Engineering 2116.81
(stations);
Technology
Engineering
(Shenzhen)
management
Co. Ltd.services technical
services of
engineering power
generation solar
power generation
and energy storage
as well as repairs of
electrical equipment
and general
372024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
equipment etc.Energy storage
technology services;
Energy saving
management
Shenzhen services; Contract
Nanshan energy management;
Power Technical services of
Environmental Subsidiary solar power 7900 4708.35 3900.45 228.92 -395.92 -396.72
Protection generation
(Shenzhen) technology;
Co. Ltd. Centralized fast
charging stations;
Engage in investing
activities with self-
owned funds.Jiangsu
Liaoyuan
Joint Chemical raw
Environmental
stock materials chemicals 4075 105598.54 82629.80 69972.00 11094.03 9706.63
Protection
company and energy
Technology
Co. Ltd.Situation of acquiring and disposing subsidiary during the reporting period
□Applicable □Not applicable
Methods of acquiring and disposing Impact on overall production operations
Company name
subsidiary during the reporting period and performance
It is conducive to promoting the
Company's exploration and practice in
the field of large-scale energy storage
Shenzhen Nanshan Power Xiwan Energy Not available due to short establishment and helping the Company to transform to
(Zhongshan) Co. Ltd. time integrated energy service; the project is
still in the construction stage and has no
significant impact on the Company's
operating performance.Notes to main holding and shareholding companies
Shenzhen Nanshan Power Zhongshan Company: in December 2024 Shenzhen Nanshan Power Zhongshan Company received the
first payment of RMB 45 million of the remaining compensation for the Plot A. As of the end of the reporting period the
Company had cumulatively received the compensation payment of RMB 112413478 for Plot A accounting for 50.03% of the
total compensation payment for Plot A. In view of the fact that Plot A has met the conditions for derecognition Shenzhen
Nanshan Power Zhongshan Company realized a profit or loss on asset disposal of RMB 163.2347 million in 2024.Xiefu Company: In September 2024 Xiefu Company publicly listed to transfer 40% of the equity of Huidong Xiefu. At the end of
October Xiefu Company and Huizhou Port Investment Group Co. Ltd. signed the Property Transaction Contract on the transfer
of 40% of the equity of Huidong Xiefu. The total transfer price was RMB 57887725.65. During the reporting period Xiefu
Company received the transfer price of RMB 57887725.65 for 40% of the equity of Huidong Xiefu and completed the industrial
and commercial registration procedures for the change of shareholders.
382024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
X. Structured entities controlled by the company
□Applicable □Not applicable
XI. Prospects for the Company's future development
1. Analysis of the Company's operating situation in 2025
In 2025 the Company's primary business will still face an extremely severe operating situation. First natural gas price will remain
high. With the steady recovery of the domestic economy and the gradual increase in demand it is unlikely that the natural gas
price will experience a significant decline. Even though both the long-term contract price in 2025 and the expected spot nodal
electricity price are relatively low there is still a possibility that the cost of power generation production could exceed the revenue.Second the Company still faces a challenging responsibility to ensure the continuity of power supply. According to the Analysis
and Forecast Report on the National Electricity Supply and Demand for 2024-2025 released by China Electricity Council it is
expected that the total electricity consumption of the whole society in China will increase by about 6% YoY in 2025. According to
relevant forecasts for Guangdong Province taking into account the continuous economic development and the continuous
increase in the installed capacity of new energy sources it is expected that the maximum unified dispatching load demand during
the summer period will reach 165 million kilowatts representing a YoY growth of 5.1%. While the demand for power load
continues to rise according to the planning arrangement of the Shenzhen Municipal Government the Nanshan Power Plant has
been reduced from dual gas sources to single gas sources the difficulty of fuel supply guarantee has further increased and the
pressure of the Company to guarantee power supply has further increased. Third competition in the spot power market has
become increasingly fierce. At this stage spot power market in Guangdong Province has established a power market system of
"medium and long-term plus spot and ancillary services" which has clarified the goals of developing a clean low-carbon safe and
efficient market. As a large number of new unit with higher energy efficiency and larger capacity come into operation the
Company's existing 9E unit will be subject to an increasingly unfavorable situation in spot power market.Although the Company still faces difficulties and challenges since 2024 a series of policies and safeguard measures have been
issued intensively at the national level which have played a strong role in leading and promoting the construction of a new energy
system and further promoted the grid connection and dispatching of new energy storage. The 2025 National Energy Work
Conference clearly stated that it is necessary to adhere to the green and low-carbon transformation continue to promote the
optimization and adjustment of energy structure and coordinate the energy work tasks of promoting the construction of new
power system. In this context the Company's clear strategic development direction is highly consistent with the requirements of
the country to accelerate the planning and construction of a new energy system further promote the energy revolution and
achieve the "dual carbon" goals. With its long-term practice in the field of power system the Company has built a mature and
perfect power system operation mechanism trained a large number of professional and technical talents in the fields of gas turbine
power generation power trading energy storage project "construction operation management and maintenance" and has certain
advantages in integrated energy service and energy storage project construction operation management and maintenance laying a
good foundation for the Company to carry out integrated energy service and energy storage business and build a "investment
construction operation and maintenance" platform. At present the Company is implementing independent energy storage
industrial and commercial energy storage photovoltaic and other new energy industry upgrading projects which are in line with
the latest policy guidance of the state provinces and cities. The Company will seize the major historical opportunity of leapfrog
development of new energy continue to explore external opportunities for transformation and development by continuously
developing the market continue to deepen reform and innovation to stimulate internal potential and vitality and continue to
strengthen capacity building to improve the overall quality of personnel and spare no effort to promote the Company's high-
quality development.
2. Summary of the Company's business plan in 2025
392024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
The year 2025 is a year for formulating the Company's 15th Five-Year Plan and also a crucial year for breaking the deadlock in the
Company's transformation and development. The Company will continue to be guided by Xi Jinping's thought of socialism with
Chinese characteristics in the new era uphold the core values of "professionalism innovation efficiency courage and win-win"
take "creating a green future with competent people" as its mission carry forward the enterprise spirit of "being responsible
seeking new succeeding in doing and winning in doing" seize the major historical opportunity of leapfrog development of the
new energy industry take "stabilizing the stock increasing the increment and deepening the reform" as the core task fully
combine its own resources and ability endowment and strive to build an integrated platform of "investment construction
operation management and maintenance" actively create a diversified and intelligent integrated energy service system
continuously improve its core competitiveness and firmly move forward around the vision of "becoming a domestic advanced
integrated energy service provider".
(1) Strengthen the direction and optimize the layout and fully promote the transformation and development of the Company. First
focus on the strategic direction of building an integrated energy service provider focus on key areas fully expand projects and
continue to promote the Company's transformation and development. Second promote the formal operation of the energy storage
sub-fund strengthen the linkage between the energy storage parent fund and the sub-fund vigorously expand integrated energy
service projects by leveraging the fund tool and deepen the Company's layout in the field of comprehensive energy service
business. Third take operation and maintenance as the starting point improve the model of integrated energy service provider
and forge the ability of the whole industry chain. Give full play to the Company's advantages in the field of electric power through
the undertaking of diversified operation and maintenance projects continuously accumulate site resources enrich project
experience build a professional team gradually establish an industry-leading professional operation and maintenance platform
and on this basis build a full-chain service system integrating "investment construction operation and maintenance"
continuously enhance the Company's core competitiveness in the field of integrated energy services and gradually build a perfect
business model of integrated energy service provider. Fourth fully promote the transformation and upgrading of affiliated
enterprises around the strategic direction of the Company. Shenzhen Nanshan Power Environmental Protection Company has
made every effort to promote the development of integrated energy management projects form a diversified integrated energy
service portfolio create photovoltaic energy storage and charging pile benchmark demonstration projects while optimize and
improve the project management process standardization system forming a replicable and promotable operation mechanism and
profit model and comprehensively improving the standardization and efficiency of project full-cycle management. Shenzhen
Nanshan Power Engineering Company actively explores new projects at home and abroad speeds up the pace of market-oriented
reform and uses project experience to form a replicable market-oriented project expansion operation and maintenance model. At
the same time relying on the advantages of gas turbine service field it actively explores the feasibility of expanding to the new
energy field. Xiefu Company continues to promote the property lease management service business of Energy Corporation
strengthens the comprehensive service level strives to improve the property rental rate and improves the operating efficiency.
(2) Make every effort to revitalize assets in stock and realize optimal allocation and value-added of resources. First
comprehensively coordinate key businesses such as power production operation fuel supply and cost control build an efficient
operation mechanism optimize gas-electricity matching and actively participate in various power market transactions on the basis
of fully controlling transaction risks. Simultaneously continuously deepen the work of reducing costs and increasing efficiency
and enhance the level of equipment management. While earnestly fulfilling the social responsibilities of ensuring power supply
steadily enhance the profitability of the power business to achieve a win-win situation between economic benefits and social
benefits. Secondly further strengthen market awareness fully expand and maintain power sales channels and improve the
Company's market competitiveness and bargaining power. At the same time focus on strengthening the construction of
employees' professional capabilities conduct in-depth research on relevant policies actively explore the policy orientation and
market mechanisms for new energy assets to participate in electricity market transactions and improve the return on investment of
assets. Third continuously and deeply promote the follow-up work of the land acquisition and storage and the asset disposal work
402024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
of Shenzhen Nanshan Power Zhongshan Company. Make every effort to ensure the successful completion of key tasks such as the
dismantling of unit equipment soil assessment and plot handover and simultaneously properly dispose of the relevant assets.
(3) Resolutely build a solid safety defense line to ensure the work safety and stable operation of the Company. Focus on
strengthening the overall planning and overall deployment of work safety improve the safety management system through
systematic risk assessment and precise control strengthen the investigation and governance of hidden dangers improve the
emergency response capacity and ensure the steady progress of the Company's various businesses. First continuously promote the
construction of the safety management system for new businesses and new business form comprehensively improve the work
safety responsibility system actively learn from and draw on the advanced management methods within the industry optimize
safety standards and specifications etc. and take multiple measures simultaneously to continuously enhance the safety
management level. Second strengthen the safety management of construction in progress focus on key areas keep an eye on key
links check weak parts continuously improve the safety risk prevention and control capabilities and make every effort to ensure
the safe and orderly progress of construction in progress. Third comprehensively optimize the safety management assessment and
evaluation system strengthen the construction of safety culture and actively build a new pattern of work safety of the Company.
(4) Continue to improve the modern enterprise system and comprehensively enhance the ability to create value. First continuously
improve the Company's governance level. In accordance with the requirements of the latest regulatory policies optimize the
institutional system of corporate governance to ensure a reasonable corporate governance structure and standardized decision-
making procedures. At the same time continue to improve the quality of investor relations management and enhance investor
confidence. Second continuously improve the level of standardized management comprehensively complete the construction of
the Company's process standardized management system streamline business processes optimize chain collaboration and achieve
comprehensive coverage and effective connection of business in all fields. Third continuously improve the level of financial
services use financial information systems to improve the quality of financial information continuously optimize comprehensive
budget financial analysis and capital management explore more efficient financial management and control models and promote
the organic integration of finance and business. Fourth continuously improve the level of risk prevention strengthen internal
supervision and risk control compliance management deepen compliance management construction strengthen risk identification
and control in new business areas and ensure the stable operation of the Company.
(5) Deeply promote the reform of incentive mechanism to enhance internal vitality and motivation. First comprehensively build a
differentiated performance appraisal system continuously improve the salary incentive mechanism establish an incremental salary
incentive mechanism fully stimulate the enthusiasm and creativity of employees and improve the overall operation efficiency of
the enterprise. Second promote the establishment of a reserve talent pool establish a young talent cultivation system and cultivate
a reserve cadre team that meets the development needs of the Company's new business and new business forms in a systematic and
scientific manner. Third actively build an internal personnel flow mechanism implement the model of personnel secondment and
exchange realize the efficient and flexible allocation of the Company's existing human resources and improve organizational
efficiency. Fourth vigorously promote the leadership responsibility system. The Company's leaders personally shall take the lead
to go deep into the front-line management of the key businesses of subordinate enterprises coordinate internal and external
resources according to the actual needs and existing problems of subordinate enterprises provide accurate support promote the
rapid development of subordinate enterprises and promote the coordinated improvement of the overall business.
(6) Adhere to the leading direction of party building and comprehensively consolidate the foundation of high-quality development.
First unremittingly grasp the theoretical armament insist on enriching the mind with the party's theory guide practice and
promote work. Second continue to build a "1+2+3+N" working system deepen the "Party building +" model give full play to the
vanguard and exemplary role of Party members and promote business development to make new breakthroughs under the
leadership of Party building. Third adhere to the comprehensive governance of the Party carry out regular study and education of
Party discipline deeply rectify formalism and bureaucracy to reduce the burden on the grassroots actively solve the problems
412024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
existing in the development and form a long-term mechanism and continue to empower and increase efficiency for corporate
governance and transformation development. Fourth strengthen the construction of the Party's work style integrity and anti-
corruption efforts enhance the supervisory responsibilities enforce discipline and accountability explore the application mode of
the fault-tolerance mechanism and create a clean and upright environment for business and undertakings. Fifth continue to
enhance the "soft power" of corporate culture promote the deep integration of corporate culture and production and operation
through party building and pool the strength for development.The business plan and related situation analysis described in this annual report do not constitute the Company's
commitment to investors. The Company reminds investors to maintain due risk awareness understand the differences
between the business plan and actual operating conditions and make prudent decisions of investment.
3. Potential major risks and countermeasures
(1) Primary business: in 2025 due to multiple factors the Company's power plants will face great pressure from the continuous
high fuel price and the backward energy efficiency of the unit. The 9E unit will have difficulty in making profits under the
pressure of competition with more efficient and lower cost unit and the operation situation of the Company's main business will
be even more severe. The Company will persist in enhancing the operation and management of assets in stocks proactively
adapting to the demands and dynamics of the power market and striving to optimize the profitability of its primary business and
overall operational efficiency. At the same time the Company will focus on integrated energy service actively explore diversified
business models seize the opportunity to transform from a traditional power generation company to an integrated energy service
provider and create better conditions for the Company's continued operation and healthy development.
(2) In terms of safety management: with the diversified development of the Company's business safety risks are intertwined and
superimposed. Therefore the Company has further strengthened the overall planning and overall deployment of safety
management. According to the risk characteristics and work requirements of each business segment for prominent problems and
difficulties it has deeply analyzed the root causes organized consultation and judgment formulated practical solutions and
carried out systematic deployment to ensure that the safety management meets the needs of business development and effectively
prevents various safety risks. With the advancement of power market-oriented reform power plants will face more flexible
dispatching methods and stricter assessment policies which puts forward higher requirements for the operation and maintenance
of the existing aging power generation equipment. The Company will continuously improve the maintenance and management
level of equipment by formulating scientific and reasonable maintenance and technical transformation plans investing
corresponding funds and technical forces implementing primary responsibility for work safety and ensuring the safe and stable
operation of production facilities; Simultaneously the Company will enhance training and emergency preparedness ensuring the
implementation of work safety responsibilities across five key areas: responsibility of work safety management investment
training and emergency response. Doing so aims to prevent any human-induced work safety accidents within the Company's
system while maintaining the supporting role of the main peak-shaving power supply point.
(3) Fuel procurement: In 2025 the Company's natural gas purchase price will mainly depend on changes in the international fuel
market and the sales prices set by the Company's existing suppliers. Under the background of slow global economic recovery and
the premise that there is no fierce geopolitical conflict for the time being the international energy price level is expected to
maintain the current level or even continue to decline in 2025. Affected by this the Company's natural gas procurement cost is
expected to continue to decrease slightly in 2025 compared with 2024 but the overall price level is still high. In addition the
Company has transform from dual gas sources to a single gas source pattern which has a negative impact on the stability of gas
supply the flexibility of gas volume coordination and the economy of gas price. At the same time with the continuous
implementation of electricity spot trading rules and capacity price policies as well as the successive commissioning of power
supply points around Shenzhen higher requirements have been put forward for the stability and flexibility of natural gas supply.
422024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
The Company will continue to optimize upstream cooperation relationships coordinate gas supply work under a single gas source
and do its best to minimize natural gas procurement costs while ensuring gas demand for power production.
(4) Land of Nanshan Power Plant: at the end of 2024 the Company again accessed the Notice of Shenzhen Municipal Bureau of
Planning and Natural Resources on Issuing the Shenzhen Land Consolidation Plan for 2024 on the official website of Shenzhen
Municipal Bureau of Planning and Natural Resources. According to its attached table Shenzhen Land Consolidation Plan for 2024
still included the land acquisition and storage of Nanshan Power Plant and related content with no substantial change from the
content of the land consolidation plans disclosed in recent years. The Company will maintain close communication with relevant
departments of Shenzhen actively follow up on the implementation progress of relevant government plans and work with legal
advisors to carefully study Land of Nanshan Power Plant study and formulate response strategies and work plans and make every
effort to protect the listed company and all the legitimate rights and interests of shareholders.The Company advises investors to take note of the aforementioned major risks as well as other potential risks that may
affect the Company and to make prudent and informed investment decisions accordingly.XII. Reception of visitors intended for research communication interviews and other
activities during the reporting period
□Applicable □Not applicable
Main content Basic
Reception Means of discussed and information
Reception date Visitor type Visitor
location reception information index of the
provided survey
Inquire about the
Company's
performance
market
Online The Company
performance future
Value online communication Individuals offers prompt
April 29 2024 15 development
platform on the network institutions response in
direction progress
platform writing.of the Company's
investment matters
and land-related
matters etc.The Company
Participate in
welcomes
Headquarters General Meetings
January - visitors in
office area of Field research Individuals 17 receive visits from
December 2024 accordance
the Company individual investors
with laws and
etc.regulations
Inquire about the
Company's future
development
The Company
direction the
January - irm.cninfo offers prompt
Written Inquiry Individuals 74 updates of the
December 2024 network response in
Company's
writing.investment matters
and land-related
matters etc.Inquire about the The Company
January - Telephone Telephone Company's responded in
Individuals 70
December 2024 communication communication performance accordance
market with the law
432024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
performance land-
related matters and
the update of the
Company's
investment matters
etc.XIII. Formulation and implementation of market value management system and valuation
improvement plan
Whether the Company has formulated a market value management system.□Yes □No
Whether the Company has disclosed plans for valuation enhancement.□Yes □No
XIV. Implementation of the action plan of "Double Improvement of Quality Return"
Whether the company has disclosed the announcement of the action plan of "Double Improvement of Quality and Return".□Yes □No
442024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Section IV Corporate governance
I. Basic situation of corporate governance
During the reporting period the Company continued to enhance its corporate governance structure and improve the modern
corporate governance structure in accordance with the relevant laws regulations normative documents such as the Company Law
Securities Law Code of Governance of Listed Companies Stock Listing Rules and the Company's Articles of Association. The
Company improved the level of standardized governance and refined management and effectively protected the legitimate rights
and interests of listed companies investors and employees.
1. General Meeting: The Company convened General Meetings in strict accordance with legal procedures to ensure that
shareholders exercise their rights in accordance with the law. During the reporting period the Company held a regular and five
extraordinary general meetings to carefully study and review on major matters requiring decision-making by the shareholders'
meeting. The convening and calling procedures of the Company's General Meetings the attendees and the subject qualifications of
the convener voting procedures and voting results were all in compliance with the Company Law Securities Law Rules for
General Meetings of Listed Companies and other laws regulations normative documents and relevant provisions of the
Company's Articles of Association. The Company had neither major shareholder nor related parties involved in the appropriation
or transfer of the Company's funds assets and other resources in any form.
2. Board of Directors: The Board of Directors of the Company adheres to standardized operation and management
implementing various measures to enhance its own development and elevate the standardization and scientific decision-making
capabilities of the Board. During the reporting period Board of Directors of the Company held 3 regular and 9 extraordinary
meetings to meticulously deliberate and review major matters within its scope of authority. The four special committees under the
Board of Directors namely the Strategy and Investment Management Committee the Audit Committee the Nomination
Committee and the Remuneration and Appraisal Committee meticulously deliberate and review relevant matters according to
their respective responsibilities. They provided opinions and suggestions to fully leverage the role of each committee in addressing
major issues. These committees actively contributed to investment decision-making key personnel adjustments standardized
management internal auditing and risk control ensuring the scientific nature of the company's decision-making processes and
management standardization.
3. Board of Supervisors: The Company's Board of Supervisors conscientiously performs its supervisory duties in accordance
with relevant laws and regulations demonstrating a responsible attitude toward the Company and shareholders. During the
reporting period the Company's Board of Supervisors held 3 regular meetings and 7 extraordinary meetings to supervise and
inspect important matters such as the Company's financial position major decision-making matters internal control and
standardized management and expressed opinions. At the same time the Board of Supervisors also performed its supervisory
duties by attending General Meetings and the meetings of Board of Directors and organizing on-site inspections of the Company's
subsidiaries to gain an in-depth understanding of the Company's operations and management.
4. Managers: During the reporting period the Company's managers strictly followed relevant laws and regulations and the
requirements of the Company's Articles of Association conscientiously implemented the decisions of the General Meeting and
Board of Directors actively organized and carried out the Company's production operation and management activities. They
consistently refined the office meeting system and internal control system consistently optimized work processes and decision-
making procedures followed the working principles of reasonable division of labor enhanced cooperation and the purpose of
collective decision-making on major matters continuously improved the Company's management level striving to achieve annual
operating goals.
452024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
5. Information disclosure and investor relations management: Board of Directors of the Company strictly complies with the
requirements of the Measures for the Administration of Information Disclosure of Listed Companies the Stock Listing Rules and
other regulations and normative documents and conscientiously performs its information disclosure obligations. During the
reporting period the Company completed the preparation and disclosure of regular reports and interim reports in accordance with
laws and regulations and disclosed a total of 110 announcement documents throughout the year striving to allow investors to
fully understand the Company's production and operation management and major events. The Company rigorously adheres to
stipulations outlined in normative documents such as the Guidelines for the Management of Investor Relations of Listed
Companies and the Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operations
of Main Board Listed Companies to effectively manage investor relations. The Company has facilitated investor engagement
through on-site visits email correspondence investor hotlines the Shenzhen Stock Exchange's interactive platform and other
communication channels so as to enhance investors' understanding of the Company.
6. Insider information management: The Company strictly follows the requirements of regulations and normative documents
such as the Information Disclosure Management Measures for Listed Companies and the Guidelines for the Supervision of Listed
Companies No. 5 - Registration and Management System for Insiders of Listed Companies' Insider Information standardizes the
Company's insider information management and conscientiously submits memoranda on updates of major event and insider
information files in accordance with relevant regulations. During the reporting period the Company did not have any inside
information leakage.
7. Internal control and standardized management: During the reporting period the Company attaches great importance to the
construction of internal control solidly carries out internal control self-evaluation and internal audit work comprehensively
evaluates the effectiveness of internal control and accurately identifies potential risk points through scientific and rigorous
processes so as to ensure the continuous optimization and improvement of the internal control system. At the same time the
Company vigorously carries out the construction of compliance system effectively improves the overall standardised management
level of the Company and builds a solid line of defence for the prevention of operation and management risks.Whether the Company's actual situation of corporate governance is significantly different from the laws administrative regulations
and the provisions on listed company governance issued by CSRC
□Yes □No
There is no significant difference between the actual situation of the Company's corporate governance and the laws administrative
regulations and regulations on the governance of listed companies issued by the CSRC.II. The Company's independent possession of assets personnel finance organization and
business etc. from its controlling shareholders and actual controllers.The Company has no controlling shareholder. The Company is completely independent of its major shareholders in terms of
personnel assets finance business and institutions and has the ability to make independent decisions and operate effectively.
1. Personnel independence: The Company has an independent human resources management system salary and welfare system;
All senior officers of the Company are full-time managers of the Company and do not hold other administrative positions other
than directors and supervisors in shareholder entities; The Company recruits and fires employees on its own within the scope
approved by Board of Directors and based on operational and management needs. The Company has established a comprehensive
human resources management system and has independent management rights.
462024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
2. Asset independence: The Company has independent production facilities and auxiliary systems land use right and housing
property rights office facilities and equipment. Within the scope of authorization by the General Meeting and Board of Directors
it has the power to independently purchase and dispose of assets.
3. Financial independence: the Company has an independent Financial Management Department and accounting system has
equipped with independent financial management and accounting personnel has established a more complete financial
management system and has independent bank accounts and tax accounts. The Company has independent financial decision-
making power within the scope authorized by the General Meeting and the Board of Directors and there is no situation in which
major shareholders interfere with financial management or misappropriation of funds etc.
4. Business independence: the Company independently carries out production and operating activities and has established
independent and complete production procurement and sales channels and management system. Within the scope authorized by
the General Meeting and the Board of Directors the Company operates independently manages itself and is responsible for its
own profit or loss.
5. Institutional independence: based on the needs of production operation and management the Company has established a
more perfect organizational structure and management structure in accordance with modern enterprise management standards.There is no situation in which shareholders interfere with the establishment and operation of the Company's institutions and there
is no situation in which they share the organizational structure with shareholders.III. Horizontal competition
□Applicable □Not applicable
IV. Relevant information on the Annual General Meeting and Extraordinary General
Meeting held during the reporting period
1. Information on the General Meeting during the reporting period
Investor
Convening Disclosure
Session Type participati Resolution
date date
on ratio
Reviewed and approved the Proposal on
Amending the Articles of Association of
The 1st
Shenzhen Nanshan Power Co. Ltd. the
Extraordinary Extraordinar
January 9 January 9 Proposal on Amending the Rules of
General y General 38.31%
2024 2024 Procedure of the Board of Directors of
Meeting in Meeting
Shenzhen Nanshan Power Co. Ltd. and the
2024
Proposal on Amending the Working System
for Independent Directors of Shenzhen
Nanshan Power Co. Ltd.Reviewed and approved the Proposal on
The 2nd
Listing and Transfer of the Assets Related to
Extraordinary Extraordinar
February 26 February 26 the Generating Units and Heavy Oil
General y General 38.32%
2024 2024 Processing Line of Shenzhen Nanshan Power
Meeting in Meeting
(Zhongshan) Power Co. Ltd. a Held
2024
Subsidiary of the Company
Reviewed and approved seven proposals
2023 Annual Annual
including the 2023 Report on the Work of the
General General 38.34% May 8 2024 May 8 2024
Board of Directors and the 2023 Report on
Meeting Meeting
the Work of the Board of Supervisors
The 3rd Extraordinar 38.33% June 20 2024 June 20 2024 Reviewed and approved the Proposal on the
472024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Extraordinary y General Renewal of the Board of Directors and the
General Meeting Election of Non-independent Directors of the
Meeting in Tenth Board of Directors the Proposal on the
2024 Renewal of the Board of Directors and the
Election of Independent Directors of the
Tenth Board of Directors the Proposal on the
Renewal of the Board of Supervisors and the
Election of Non-employee Representative
Supervisor of the Tenth Board of Supervisors
and the Proposal on Re-listing and
Transferring the Generating Unit and Heavy
Oil Treatment Line Related Assets of the
Company's Held Subsidiary Shenzhen
Nanshan Power (Zhongshan) Power Co. Ltd.The 4th Reviewed and approved the Proposal on
Extraordinary Extraordinar Formulating the Management System for the
December 12 December 12
General y General 38.62% Selection of Accounting Firm and the
20242024
Meeting in Meeting Proposal on the Engagement of the Auditor in
2024 2024 and Determination of Remuneration
The 5th Reviewed and approved the Proposal on Re-
Extraordinary Extraordinar listing and Transfer of the Relevant Assets of
December 23 December 23
General y General 38.75% the Generating Units of Shenzhen Nanshan
20242024
Meeting in Meeting Power (Zhongshan) Power Co. Ltd. a Held
2024 Subsidiary of the Company
2. Preferred shareholders whose voting rights have been restored request the convening of an
Extraordinary General Meeting of Shareholders
□Applicable □ Not applicable
V. Directors supervisors and senior officers
I. Basic information
Numb
Numb Numb
er of Numb
er of er of
shares er of Reaso
shares shares Other
held at shares ns for
Comm increas reduce increas
Incum Expira the held at increas
Gende Positio encem ed in d in es/decr
Name Age bency tion of beginn the end e or
r n ent of the the eases
status term ing of of the decrea
term current current (shares
the period se in
period period )
period (shares shares
(shares (shares
(shares )
))
)
Septe
Kong June
Chair Incum mber
Guolia Male 41 19 0 0 0 0 0
man bent 13
ng 2027
2022
Septe
Vice June
Hu Incum mber
Male 54 Chair 19 0 0 0 0 0
Ming bent 13
man 2027
2021
Huang Direct Incum June 3 June
Male 53 0 0 0 0 0
Qing or bent 2019 19
482024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
2027
August June
Direct Incum
2819
or bent
20172027
Chen
Male 59 Genera 0 0 0 0 0
Yuhui August June
l Incum
1119
Manag bent
20172027
er
Chen June June
Direct Incum
Yedon Male 51 20 19 0 0 0 0 0
or bent
g 2024 2027
April June
Direct Incum
2519
or bent
20162027
Execut
Wu ive
Guowe Male 59 Deput 0 0 0 0 0
April June
n y Incum
119
Genera bent
20162027
l
Manag
er
Indepe
August June
Huang Femal ndent Incum
5321900000
Xiqin e directo bent
20222027
r
Indepe Nove
June
Du ndent Incum mber
Male 69 19 0 0 0 0 0
Wei directo bent 11
2027
r 2019
Indepe
June June
Ning ndent Incum
Male 41 20 19 0 0 0 0 0
Jie directo bent
20242027
r
Chair
man of
the March June
Zhai Incum
Male 53 Board 23 19 0 0 0 0 0
Baojun bent
of 2023 2027
Superv
isors
June June
Zhang Superv Incum
Male 36 20 19 0 0 0 0 0
Ming isor bent
20242027
Yu June June
Superv Incum
Haiyo Male 42 20 19 0 0 0 0 0
isor bent
ng 2024 2027
Emplo
yee
Qian April June
represe Incum
Wenhu Male 56 26 19 0 0 0 0 0
ntative bent
i 2021 2027
superv
isor
Emplo
April June
Lu Femal yee Incum
42261900000
Yindi e represe bent
20212027
ntative
492024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
superv
isor
Deput
y Septe
June
Li Genera Incum mber
Male 53 19 0 0 0 0 0
Chao l bent 18
2027
Manag 2023
er
Deput
y Septe
June
Tao Genera Incum mber
Male 57 19 0 0 0 0 0
Lin l bent 18
2027
Manag 2023
er
Chief
Zhang June June
Financ Incum
Xiaoyi Male 37 13 19 0 0 0 0 0
ial bent
n 2022 2027
Officer
Secret
ary of
the April June
Incum
Zou Yi Male 51 Board 26 19 0 0 0 0 0
bent
of 2021 2027
Direct
ors
Sun April June
Direct Resign
Huiron Male 41 26 20 0 0 0 0 0
or ed
g 2021 2024
Indepe Nove
June
Chen ndent Resign mber
Male 54 20 0 0 0 0 0
Zetong directo ed 17
2024
r 2017
April June
Li Superv Resign
Male 46 26 20 0 0 0 0 0
Caijun isor ed
20212024
June
Liao Superv Resign June 3
Male 36 20 0 0 0 0 0
Junkai isor ed 2019
2024
Whether there was any departure of directors and supervisors and dismissal of senior officers during their term of office during the
reporting period
□Yes □No
Changes in directors supervisors and senior officers of the Company
□Applicable □Not applicable
Name Position held Type Date Reason
Chen Yedong Director Elected June 20 2024
Ning Jie Independent director Elected June 20 2024
Zhang Ming Supervisor Elected June 20 2024
Yu Haiyong Supervisor Elected June 20 2024
Resignation upon
Sun Huirong Director June 20 2024
expiration of term
Resignation upon
Chen Zetong Independent director June 20 2024
expiration of term
Resignation upon
Li Caijun Supervisor June 20 2024
expiration of term
502024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Resignation upon
Liao Junkai Supervisor June 20 2024
expiration of term
2. Position
The professional background and main work experience of the Company's incumbent directors supervisors and senior officers as
well as their main responsibilities currently
(1) Members of the Board of Directors
Mr. Kong Guoliang: Born in 1983 he is a member of the CPC with a master's degree in Finance from Central University of
Finance and Economics. He is a Certified Public Accountant and Economist. He has successively served as Warrant Services
Manager and Securities Representative of Shenzhen Zhenye (Group) Co. Ltd. Senior Manager and Deputy Minister of the
Investment Department of Shenzhen Yuanzhi Investment Co. Ltd. Minister of Capital Operations Department Minister of
Investment and Development II Minister (Director) of the Department of Strategic Studies (Office of the Board of Directors) and
Secretary of the Board of Directors of Shenzhen Capital Holdings Co. Ltd. a director of Shenzhen Zhenye (Group) Co. Ltd. a
director of China International Marine Containers (Group) Co. Ltd. General Manager of Shenzhen Pingwen Development
Investment Co. Ltd. and Chairman of Shenzhen Yuanzhi Culture Holding Co. Ltd. Currently he is the Chairman of Shenzhen
Energy Corporation the director of Shenzhen Energy (Hong Kong) International Limited and the director of HONG KONG
NAM HOI (INTERNATIONAL) LTD. From September 2022 to the present he has served as the Chairman of the Company and
from November 2022 to the present he has served as the Secretary of the Party Committee of the Company.Mr. Hu Ming: Born in 1970 he is a member of China Democratic National Construction Association with a master's degree. He
is a Senior Engineer. From March 2003 to December 2019 he served in government-related agencies such as Nanshan District
Housing and Construction Bureau Audit Bureau etc.; From January 2020 to August 2021 he served as the Director and General
Manager of Shenzhen Dashahe Construction Investment Co. Ltd. and the Director and General Manager of Shenzhen Nanshan
Anju Construction Development Co. Ltd.; from August 2021 to present he has served as the Director and General Manager of
Shenzhen Guangju Energy Co. Ltd. and from September 2021 to present he has served as the Vice Chairman of the Company.Mr. Huang Qing: Born in 1971 he is a member of the CPC. He is an Economist with a master's degree in economics and
graduated from Wuhan University majoring in National Economic Planning and Management. He has successively served as
Deputy Director and Director of the General Office of Shenzhen Municipal Government Secretary of the General Offices of
Hunan Provincial Government and Shanxi Provincial Government Deputy Director of the Guangzhou Office of Shanxi Provincial
Government and member of the Party Leading Group etc. He is currently the Deputy General Manager of Shenzhen Capital
Holdings Co. Ltd. and concurrently serves as the Chairman of Shenzhen Yixin Investment Co. Ltd. the Chairman of Shenzhen
Yuanzhi Ruixin Equity Management Co. Ltd. the Chairman of Shenzhen Huijin Intelligent Industry Co. Ltd. the Director of
Shenzhen Energy Corporation the Director of Shenzhen Water and Environment Investment Group Co. Ltd. the Director of
Shenzhen High-tech Investment Group Co. Ltd. the Director of Shenzhen Institute of Building Research Co. Ltd. the Director of
China Resources SZITIC Investment Co. Ltd. the Director of Shenzhen Enterprise Service Group Co. Ltd. the Director of
Shenzhen Capital International Co. Ltd. and the Director of Shenzhen Capital (Hong Kong) Container Investment Co. Ltd.;
From June 2019 to present he has served as a director of the Company.Mr. Chen Yuhui: Born in 1965 he is a member of the CPC. He is a Senior Engineer graduated from Shanghai Jiaotong
University and has obtained a bachelor's degree in ship power and a master's degree in vibration impact and noise. In 1989 he
worked in the Maintenance Department of Shenyang Liming Gas Turbine Co. Ltd.; From December 1989 to June 2006 he
worked at the Yueliangwan Power Plant of Shenzhen Energy Corporation where he served as the Duty Officer of the Operation
Department a Specialist in the Chief Engineer's Office Deputy Director of the Maintenance Department Deputy Plant Director
Plant Director etc; From June 2006 to July 2014 he worked at the Eastern Power Plant of Shenzhen Energy Corporation where
512024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
he served as Deputy General Manager and Operations Director; From July 2014 to August 2017 he served as Chairman General
Manager and Party Branch Secretary of Zuhai Shenzhen Energy Hongwan Power Co. Ltd.; From August 2017 to present he has
served as the director and General Manager of the Company and from May 2019 to present he has served as Deputy Secretary of
the Party Committee of the Company.Mr. Chen Yedong: Born in 1973 he is a member of the CPC and has a master's degree. He holds a bachelor's degree in
economics from Dongbei University of Finance and Economics and a master's degree in business administration from Zhongnan
University of Economics and Law. He has served as Senior Manager and Deputy Director of the Strategy Research Department
Director of the Asset Management Department and Director of the Risk Control Department of Shenzhen Capital Holdings Co.Ltd. Chairman of the Board of Supervisors and Secretary of the Party Committee of Shenzhen Clou Electronics Co. Ltd. Since
June 2023 he has served as the Deputy Secretary of the Party Committee of the Company and since November 2023 he has
served as the Director of Shenzhen Nanshan Power Gas Turbine Engineering Technology (Shenzhen) Co. Ltd. From June 2024 to
present he has served as a Director of the Company.Mr. Wu Guowen: Born in 1965 he holds a bachelor's degree. From January 1994 to December 2007 he worked in Shenzhen
Guangju Energy Co. Ltd. From January 2008 to November 2010 he worked in Shenzhen Yisheng Liquid Warehousing Co. Ltd.as Deputy General Manager; From December 2010 to March 2016 he worked in Shenzhen Guangju Real Estate Co. Ltd. and
served successively as Executive Deputy General Manager legal representative executive director and General Manager; From
August 2013 to March 2018 he served as employee supervisor of Shenzhen Guangju Energy Co. Ltd.; From March 2018 to
September 2021 he also served as the Chairman of Shenzhen Xiefu Energy Co. Ltd.; Since January 2022 he has also served as a
director of Jiangsu Liaoyuan Environmental Protection Technology Co. Ltd.; From April 2016 to present he has served as a
director and Executive Deputy General Manager of the Company.Ms. Huang Xiqin: Born in 1971 she holds a bachelor's degree in law a master's degree in economics from the Party School of
the Central Committee of the CPC and a master's degree in Business Administration (EMBA) from the Guanghua School of
Management at Peking University. She started working in September 1992. From September 1992 to May 1998 she served as
Appraiser Manager etc. of Shenzhen International Real Estate Consulting Co. Ltd.; From November 2001 to January 2025 he
served as the Chairman of Guozhonglian Assets Evaluation Lands&Real Estate Evaluation Consulting Co.Ltd. Since January
2025 he has served as the director of Guangdong Guozhonglian Assets Evaluation Lands&Real Estate Evaluation Consulting
Co.Ltd.; From May 1998 to date she has served as executive director of Guozhonglian Asset Appraisal Land and Real Estate
Valuation Co. Ltd.; From December 2000 to date he has served as Chairman of Guozhonglian Construction Engineering
Management Consulting Co. Ltd.; From February 2015 to date she has served as a director of Beijing Guozhonglian Auction Co.Ltd.; Since January 2021 he has served as the supervisor of Guangdong Guozhonglian Construction Engineering Co. Ltd.; From
January 2022 to present she has also served as an External director of Guangdong Construction Engineering Group Co. Ltd. She
has served as an independent director of the Company since August 2022.Mr. Du Wei: Born in 1955 he is a member of the CPC Senior Engineer with a doctorate degree graduated from the Institute of
Plasma Physics Chinese Academy of Sciences majoring in Nuclear Fusion and Plasma Physics. He has served as a Cadre of the
National Energy Commission Assistant Engineer and Chief Clerk of Yangtze River Basin Planning Office Engineer and Deputy
Department Manager of China Nanshan Development Co. Ltd. Deputy General Manager and General Manager of Shenzhen
Changjiang Computer Industry Co. Ltd. Deputy Minister (Deputy Division Director) and Minister (Division Director) of the
Evaluation and Recommendation Center for Senior Managers of the Organization Department of Shenzhen Municipal Party
Committee Deputy General Manager of Shenzhen Expressway Development Co. Ltd. Chairman of Shenzhen International
Western Logistics Co. Ltd. General Manager of Shenzhen International Qianhai Industrial (Shenzhen) Co. Ltd. He serves as
Senior Consultant of Shenzhen International Commercial Property Management Co. Ltd.; Executive Director and General
522024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Manager of Shenzhen Tianyu Freight Forwarder Co. Ltd. Currently he is the executive director and General Manager of
Shenzhen Borun Investment Co. Ltd. He has served as an independent director of the Company from November 2019 to present.Mr. Ning Jie: Born in 1983 he is a member of the CPC holding a Bachelor of Laws and a Bachelor of Management from the
Law School of Southwest University of Political Science and Law. From September 2005 to July 2008 he served in Shenzhen
Intermediate People's Court; from July 2008 to December 2008 he worked in Beijing Zhonglun (Shenzhen) Law Firm; from
December 2008 to February 2012 he served as the Manager of the legal department of Shenzhen Merchants Property Consultants
Co. Ltd.; from February 2012 to February 2015 he worked at Shanghai Jintiancheng (Shenzhen) Law Firm; from September 2020
to February 2024 he served as the Executive Director of Peterson International Limited; from January 2022 to August 2023 he
served as an independent director of Min Fu International Holding Co. Ltd.; since February 2015 he has served as a senior
partner of Guangdong Ganglian Law Firm. Served as an independent director of the Company since June 2024.
(2) Members of the Board of Supervisors
Mr. Zhai Baojun: Born in August 1971 he is a member of the CPC with a bachelor's degree. From May 1993 to August 2001 he
served as the Manager of Sales Department of Zhaobao Real Estate Company in Baoan District Shenzhen; From August 2001 to
November 2013 he worked at Shenzhen Guangju Energy Co. Ltd. where he served successively as Secretary of the Youth
League Committee Armed Officer Office Director Director of the Party Office and Vice Chairman of the Trade Union of the
Company; From December 2013 to April 2015 he served as Deputy General Manager of Shenzhen Guangju Yida Hazardous
Chemicals Storage Co. Ltd.; From May 2015 to April 2020 he served as Deputy General Manager of Shenzhen Xiefu Energy Co.Ltd.; From May 2020 to March 2023 he served as the acting General Manager of Shenzhen Xiefu Energy Co. Ltd. Since March
2023 he has served as the Chairman of the Board of Supervisors of the Company and since March 2024 he has served as the
Secretary of the Disciplinary Committee of the Company.Mr. Zhang Ming: Born in 1988 he is a member of the CPC graduated from Harbin Engineering University with a major in
Management Science and Engineering holding a master's degree in management. He used to be a transfer student of the
Organization Department of the Heilongjiang Provincial Party Committee the head of the Factor Market Research Center of
Shenzhen Huajing Management Consulting Co. Ltd. and the Manager of the Strategic Research Department the Manager of the
Capital Operation Department and the Senior Manager of the Asset Management Department of Shenzhen Capital Holdings Co.Ltd. He is currently the Deputy Director of the Asset Management Department of Shenzhen Capital Holdings Co. Ltd. Ltd. a
director of Artron Art (Group) Co. Ltd. a director of Shenzhen Institute of Building Research Co. Ltd. a director of Shenzhen
Clou Electronics Co. Ltd. a supervisor of Shenzhen Water and Environment Investment Group Co. Ltd. and General Manager
of Shenzhen Energy Corporation He has served as the supervisor of the Company from June 2024 to present.Mr. Yu Haiyong: Born in 1982 he is a member of the CPC graduated from the Law Department of Zhongnan University of
Economics and Law with a master's degree in Laws. He once served as a procurator of Nanshan District Procuratorate the Deputy
Director of the Anti-Malfeasance and Infringement Bureau and Grade IV procurator of Nanshan District Procuratorate Grade IV
chief staff member of the Supervision Commission of Nanshan District Discipline Inspection Commission Deputy Director of the
Sixth Discipline Inspection and Supervision Office Deputy Director of the Third Discipline Inspection and Supervision Office
Grade I chief staff member etc. Currently he is the Deputy Director of the Discipline Inspection and Supervision Office (Board of
Supervisors Office) of Shenzhen Capital Holdings Co. Ltd. and the supervisor of Shenzhen Yuanzhi Energy Storage Private Fund
Management Co. Ltd. He has served as the supervisor of the Company from June 2024 to present.Mr. Qian Wenhui: Born in 1968 he is an Accountant with a bachelor's degree. He graduated from Changsha Normal University
of Water Resources and Electric Engineering in 1990 majoring in Financial Accounting. From July to October 1990 he worked at
Yangluo Power Plant in Wuhan. From October 1990 to August 2003 he worked in the Finance Department the Company; From
August 2003 to October 2011 he served as Chief Financial Officer of Zhongshan Zhongfa Electric Power Co. Ltd.; From March
532024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
2014 to December 2016 he served as a supervisor of Zhongshan Shenzhong Real Estate Development Co. Ltd. and Zhongshan
Shenzhong Real Estate Investment and Property Co. Ltd.; From November 2010 to July 2024 he served as the director of the
Audit and Risk Control Department of the Company; from May 2014 to October 2024 he served as the supervisor of Shenzhen
Xiefu Energy Co. Ltd. Since July 2024 he has served as the Director and Deputy General Manager of Shenzhen Guoneng
Property Management Co. Ltd.; From April 2021 to present he has served as employee representative supervisor of the Company.Ms. Lu Yindi: Born in 1982 she is a member of the CPC graduated from the School of Management Huazhong University of
Science & Technology with a major in management science and engineering with a master's degree in management. In July 2008
she joined the Global Supply Chain Management Division of Foxconn Technology Group's iDSBG Business Group where he
served successively as Deputy Section Chief Section Chief and Specialist of the Supply Chain Management Division. She joined
the Company in August 2018 and has successively served as Supervisor of Contracts and Bidding Management of the Safety and
Technology Department Deputy Director of the Supply Department and Director of the Supply Department of Nanshan Power
Plant (a subsidiary of the Company) and Deputy Director of the Company's Fuel Management Department; From June 2021 to
present she has served as the Director and Deputy Director of the Office of the Board of Directors of the Company. From April
2021 to present he has served as employee representative supervisor of the Company.
(3) Senior Officers
For information about Chen Yuhui the General Manager and Wu Guowen the Executive Deputy General Manager please refer
to the aforementioned directors' resumes.Mr. Li Chao: Born in 1971 graduated from the Department of Finance of Shanxi University of Finance and Economics he has
obtained a master's degree in Business Administration of Macau University of Science and Technology and he is a Senior
Accountant. He started working in July 1994 and has once served as Project Manager of the Audit Department of Shenzhen Dahua
Certified Public Accountants Finance Manager of Compaq Computer Technology (China) Co. Ltd. and Chief Financial Officer
of China Electricity Finance (Hong Kong) Limited; He joined Shenzhen Nanshan Power Co. Ltd. in February 2001 and he served
successively as Assistant Minister Minister Deputy Chief Economist Manager and Assistant to the General Manager of the
Corporate Development Department of the Company. He has served as the Deputy General Manager of the Company since
September 2023 and is currently the Chairman of the Board of Directors of Shenzhen Nanshan Power (Zhongshan) Power Co.Ltd. and Shenzhen Xiefu Energy Co. Ltd.Mr. Tao Lin: Born in 1967 he is an economist graduated from Shanghai Jiao Tong University with a major in Power System and
Automation. He holds a master's degree in Business Administration from the School of Economics and Management of Tsinghua
University. He started working in July 1989 and has once served as Production Officer of the Youth League Committee of Dalian
Electric Power Bureau and the On-site Secretary of the Office of Shenzhen Huaneng Economic Development Company. In
January 1992 he joined Shenzhen Nanshan Power Co. Ltd. and served successively as Office Secretary Director Secretary of
the Board of Directors General Manager of Shenzhen Xiefu Oil Supply Co. Ltd. General Manager of Zhongshan Power Co. Ltd.and Zhongshan Zhongfa Power Co. Ltd. and Deputy Chief Economist of the Company and Assistant to the General Manager. He
has served as the Deputy General Manager of the Company since September 2023. He is currently the Vice Chairman of Shenzhen
Nanshan Power (Zhongshan) Power Co. Ltd. and the Executive Director of Shenzhen New Power Industrial Co. Ltd.Mr. Zhang Xiaoyin: Born in 1987 he is a member of the CPC. He is a senior accountant with a bachelor's degree in economics
from Xiamen University and a master's degree in business administration from Wuhan University. He also holds professional
qualifications such as Certified Public Accountant of China Australian certified public accountant Certified Tax Agent Asset
Appraiser and Financial Risk Manager (FRM). He started working in October 2008 and has served as an Auditor of the Financial
Services Group of Shenzhen Branch of Ernst & Young Huaming Certified Public Accountants a Financial Accountant of the
Planning and Finance Department of Wanlian Securities Co. Ltd. a Senior Manager of the Financial Management Department of
542024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
China Resources SZITIC Trust Co. Ltd. and Head of Accounting and supervisor of China Resources Energy Services Company
Limited and an Investment Director (Deputy Minister) of Yuanzhi Venture Capital (Investment Development Department II) of
Shenzhen Capital Holdings Co. Ltd. From June 2022 to present he has served as Chief Financial Officer of the Company.Mr. Zou Yi: Born in 1973 he is a member of the CPC economist with a master's degree in Economics from Zhongnan
University of Economics and Law. From July 1994 to September 2007 he worked at the Headquarters of Shenzhen Energy
Corporation and served as Business Manager of the Finance Department Deputy Director of the Business of the Capital Office
and Business Director of the Secretariat of the Board of Directors; From September 2007 to December 2017 he served as the
Minister of Fund Department of Shenzhen Energy Finance Co. Ltd.; From December 2017 to July 2019 he served as Deputy
General Manager of Shenzhen Energy Finance Co. Ltd.; From August 2017 to November 2018 he also served as a director of
Huizhou SEC Fengda Electric Power Co. Ltd.; From August 2019 to April 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 also served as the Director of the Administration
Department of the Company. From April 2021 to the present he has served as Secretary of the Board of Directors of the Company
and from December 2023 to the present he has also served as the Director of the Office of the Board of Directors.Incumbency status in the shareholder entity
□Applicable □Not applicable
Whether to receive
Positions held in
Name of Commencement of remuneration
Entity name the shareholder Expiration of term
incumbent term allowance in the
entity
shareholder entity
Shenzhen Energy
Kong Guoliang Chairman November 4 2022 No
Corporation
Shenzhen Energy
Huang Qing Director April 8 2019 No
Corporation
HONG KONG
NAM HOI
Kong Guoliang Director September 9 2022 No
(INTERNATIONA
L) LTD
Shenzhen Energy
Zhang Ming General Manager August 26 2024 No
Corporation
Incumbency status in other entities
□Applicable □Not applicable
Whether to receive
Name of Positions held in Commencement of remuneration
Other entity name Expiration of term
incumbent other entities term allowance in other
entities
Shenzhen Energy
Kong
(Hong Kong) Director April 24 2023 No
Guoliang
International Limited
Shenzhen Guangju Director August 20 2021
Hu Ming Yes
Energy Co. Ltd. General Manager August 4 2021
Shenzhen Capital Deputy General
September 1 2016 Yes
Holdings Co. Ltd. Manager
Huang Qing Shenzhen Water and
Environment
Director December 4 2020 No
Investment Group Co.Ltd.
552024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Shenzhen High-tech
Investment Group Co. Director March 9 2018 No
Ltd.Xiong'an Green
Research Think Tank Director November 9 2017 December 9 2024 No
Co. Ltd.Shenzhen Institute of
Building Research Co. Director January 31 2018 No
Ltd.Shenzhen Yixin
Chairman October 10 2022 No
Investment Co. Ltd.Resources SZITIC
Director April 23 2021 No
Investment Co. Ltd.Shenzhen Enterprise
Service Group Co. Director April 28 2021 No
Ltd.Shenzhen Capital
Director June 22 2017 No
International Co. Ltd.Jiangsu Liaoyuan
Environmental
Wu Guowen Director January 28 2022 No
Protection Technology
Co. Ltd.Guozhonglian Asset
Appraisal Land and
Executive Director May 26 1998 Yes
Real Estate Valuation
Co. Ltd.Guozhonglian
Construction
December 13
Engineering Chairman Yes
2000
Management
Consulting Co. Ltd.Huang Xiqin Guozhonglian Assets November 26
Chairman January 27 2025 Yes
Evaluation 2001
Lands&Real Estate
Evaluation Consulting Director January 27 2025 Yes
Co.Ltd.Beijing Guozhonglian
Director February 28 2015 No
Auction Co. Ltd.Guangdong
Construction
External director January 1 2022 Yes
Engineering Group
Co. Ltd.Shenzhen Borun Director General
Du Wei February 1 2020 No
Investment Co. Ltd. Manager
Guangdong Ganglian
Ning Jie Senior Partner February 2 2015 Yes
Law Firm
Deputy Director of
Shenzhen Capital the Asset
June 25 2023 Yes
Holdings Co. Ltd. Management
Department
Shenzhen Water and
Zhang Ming Environment September 22
Supervisor No
Investment Group Co. 2022
Ltd.Shenzhen Clou
Director June 26 2023 No
Electronics Co. Ltd.Artron Art (Group) Director October 30 2024 No
562024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Co. Ltd.Deputy Director of
Discipline
Shenzhen Capital Inspection and
January 2024 Yes
Holdings Co. Ltd. Supervision Office
(Office of Board
Yu Haiyong
of Supervisors)
Shenzhen Yuanzhi
Energy Storage Private
Supervisor April 29 2024 No
Fund Management
Co. Ltd.Shenzhen Guoneng
Director Deputy
Qian Wenhui Property Management July 26 2024 No
General Manager
Co. Ltd.Punishments by Securities Regulatory Authorities in the past three years on the Company's directors supervisors and senior
officers who are currently in office and leave office during the reporting period
□Applicable □Not applicable
3. Remuneration of directors supervisors and senior officers
Decision-making procedures basis for determination and actual payment of remuneration of directors supervisors and senior
officers
(1) Decision-making procedures: according to the relevant provisions of the Company's Articles of Association the remuneration
of directors and supervisors shall be determined by the General Meeting and the remuneration of senior officers shall be
determined by the Board of Directors.
(2) Basis for determination: at present the Company has not yet implemented a remuneration system for non-independent
directors and supervisors and directors and employee supervisors who serve in the Company only receive remuneration for the
administrative positions they hold in the Company. The Company has established the Administrative Measures for the
Remuneration and Assessment of Senior Officers which determines the annual remuneration standards for the Company's senior
officers. The senior officers of the Company are subject to an annual salary system. The annual remuneration consists of two parts:
the basic annual salary and the performance annual salary accounting for 40% and 60% respectively. The Board of Directors
shall determine the actual remuneration to be paid based on the assessment results and audit of the annual operating performance
indicators of the Senior Officers. If a senior officer changes his position promotion position value or other special reasons his
salary plan shall be re-verified according to the principle of "salary change with position change" and the salary shall be
calculated according to the position standard and the actual time in the position.
(3) Actual payment: the Company pays remuneration in strict accordance with the decision-making procedures and the basis for
determining the remuneration of directors supervisors and senior officers and the expenses related to transportation
accommodation research inspection and attendance at meetings etc. incurred by directors and supervisors due to the performance
of their duties shall be borne by the Company.Remuneration of directors supervisors and senior officers of the Company during the reporting period:
Unit: RMB 10000
Total pre-tax Whether to
Incumbency remuneration receive
Name Gender Age Position
status received from remuneration
the Company from related
572024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
parties of the
Company
Kong Guoliang Male 41 Chairman Incumbent 80.35 No
Hu Ming Male 54 Vice Chairman Incumbent 0.00 Yes
Huang Qing Male 53 Director Incumbent 0.00 Yes
Director General
Chen Yuhui Male 59 Incumbent 76.55 No
Manager
Chen Yedong Male 51 Director Incumbent 68.95 No
Director Executive
Wu Guowen Male 59 Deputy General Incumbent 68.95 No
Manager
Huang Xiqin Female 53 Independent director Incumbent 11.90 Yes
Du Wei Male 69 Independent director Incumbent 13.33 No
Ning Jie Male 41 Independent director Incumbent 6.67 Yes
Chairman of the
Zhai Baojun Male 53 Incumbent 68.95 No
Board of Supervisors
Zhang Ming Male 36 Supervisor Incumbent 0.00 Yes
Yu Haiyong Male 42 Supervisor Incumbent 0.00 Yes
Employee
Qian Wenhui Male 56 representative Incumbent 47.00 No
supervisor
Employee
Lu Yindi Female 42 representative Incumbent 33.72 No
supervisor
Deputy General
Li Chao Male 53 Incumbent 73.84 No
Manager
Deputy General
Tao Lin Male 57 Incumbent 73.84 No
Manager
Chief Financial
Zhang Xiaoyin Male 37 Incumbent 0.00 Yes
Officer
Secretary of the Board
Zou Yi Male 51 Incumbent 64.39 No
of Directors
Sun Huirong Male 41 Director Resigned 0.00 Yes
Chen Zetong Male 54 Independent director Resigned 6.67 Yes
Li Caijun Male 46 Supervisor Resigned 0.00 Yes
Liao Junkai Male 36 Supervisor Resigned 0.00 Yes
Total - - - - 695.11 -
Other information
□Applicable □Not applicable
VI. Directors' performance of duties during the reporting period
1. Information of the Board of Directors during the reporting period
Session Convening date Disclosure date Resolution
Reviewed and approved the Proposal on the
The 22nd Extraordinary Property Lease Management Services Provided by
Meeting of the Ninth Board of January 23 2024 January 25 2024 Shenzhen Xiefu Energy Co. Ltd. a Held
Directors Subsidiary of the Company to Shenzhen Energy
Corporation and the Related Transactions
Reviewed and approved the Proposal on Listing
The 23rd Extraordinary
and Transfer of the Assets Related to the
Meeting of the Ninth Board of February 6 2024 February 7 2024
Generating Units and Heavy Oil Processing Line of
Directors
Shenzhen Nanshan Power (Zhongshan) Power Co.
582024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Ltd. a Held Subsidiary of the Company and the
Proposal on Convening the Second Extraordinary
General Meeting of Shareholders in 2024.Reviewed and approved 21 proposals including the
The 7th Meeting of the Ninth 2023 Report on the Work of the Board of Directors
April 10 2024 April 12 2024
Board of Directors and the 2023 Report on the Work of the General
Manager
The 24th Extraordinary Meeting Reviewed and approved the 2024 First Quarter
April 24 2024 April 26 2024
of the Ninth Board of Directors Report
Reviewed and approved five proposals including
the Proposal on the Re-election of the Board of
Directors and the Election of Non-independent
The 25th Extraordinary Meeting
May 31 2024 June 1 2024 Directors for the Tenth Board of Directors and the
of the Ninth Board of Directors
Proposal on the Re-election of the Board of
Directors and the Election of Independent Directors
for the Tenth Board of Directors.Reviewed and approved eight proposals including
Proposal on the Election of the Chairman of the
The First Meeting of the Tenth
June 20 2024 June 21 2024 Tenth Board of Directors of the Company and
Board of Directors
Proposal on the Election of the Vice Chairman of
the Tenth Board of Directors of the Company.Reviewed and approved the Proposal on Investing
The First Extraordinary
in the Project of the 300MW/600MWh Independent
Meeting of the Tenth Board of July 18 2024 July 19 2024
Energy Storage Power Station in Cuiheng New
Directors
Area Zhongshan City (Phase I).The Second Meeting of the Reviewed and approved the full text and summary
August 21 2024 August 23 2024
Tenth Board of Directors of the 2024 Semi-Annual Report
Reviewed and approved the Proposal on the Public
The Second Extraordinary Listing and Transfer of 40% of the Equity of
September 11 September 12
Meeting of the Tenth Board of Huidong Xiefu Port Comprehensive Development
20242024
Directors Co. Ltd. by Xiefu Company a Held Subsidiary of
the Company.Reviewed and approved the Third Quarter Report
of 2024 and the Proposal on the Investment by
Shenzhen Nanshan Power Environmental
The Third Extraordinary
Protection (Shenzhen) Co. Ltd. a Wholly-owned
Meeting of the Tenth Board of October 23 2024 October 25 2024
Subsidiary of the Company in Shenzhen Yuanzhi
Directors
Zhongkai Energy Storage Technology Innovation
Private Fund Partnership (Limited Partnership) and
the Related Transactions.Reviewed and approved Proposal on the
Formulation of the Management System for
Appointing Accounting Firms Proposal on
The Fourth Extraordinary Appointing the Audit Institution for 2024 and
November 25 November 26
Meeting of the Tenth Board of Determining Its Remuneration Proposal on
20242024
Directors Applying for a Line of Credit from a Financial
Institution by Pledging Patent Rights and Proposal
on Convening the Fourth Extraordinary General
Meeting in 2024.Reviewed and approved the Proposal on Re-listing
and Transferring the Relevant Assets of the
Generating Unit of the Company's Held Subsidiary
The Fifth Extraordinary
December 7 Shenzhen Nanshan Power (Zhongshan) Power Co.Meeting of the Tenth Board of December 5 2024
2024 Ltd. the Proposal on Scrapping the Assets of the
Directors
Held Subsidiary Shenzhen Nanshan Power
(Zhongshan) Power Co. Ltd. and the Proposal on
Convening the Fifth Extraordinary General
592024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Meeting in 2024
2. Attendance of directors at the Board of Directors and the General Meeting
Attendance of directors at the Board of Directors and the General Meeting of Shareholders
Have you
Number of failed to
Number of
times of Number of Number of Number of attend the
times of Number of
attendance at times of on- times of times of meetings of
attendance at times of
Name of the Board of site attendance at absences Board of
the Board of attendance at
Director Directors attendance at the Board of from the Directors in
Directors by the General
during the the Board of Directors by Board of person for
corresponden Meeting
reporting Directors proxy Directors two
ce
period consecutive
times
Kong
12 3 9 0 0 No 6
Guoliang
Hu Ming 12 3 9 0 0 No 2
Huang Qing 12 2 9 1 0 No 6
Chen Yuhui 12 3 9 0 0 No 5
Chen Yedong 7 2 5 0 0 No 2
Wu Guowen 12 3 9 0 0 No 6
Huang Xiqin 12 1 10 1 0 No 6
Du Wei 12 3 9 0 0 No 6
Ning Jie 7 2 5 0 0 No 2
Sun Huirong 5 0 4 1 0 No 4
Chen Zetong 5 0 4 1 0 No 4
Note on failure to attend the Board of Directors in person for two consecutive times
During the reporting period there is no failure to attend the Board of Directors in person for two consecutive times.
3. Directors' objections to matters relating to the Company
Whether the directors have raised any objections to matters relating to the Company
□Yes □No
During the reporting period the directors did not raise any objection to matters relating to the Company.
4. Other notes on directors' performance of duties
Whether the directors' recommendations to the Company have been adopted
□Yes □No
The statement that the directors' proposals relating to the Company have or have not been adopted
During the reporting period all directors of the company have been diligent and conscientious in carrying out their work in strict
accordance with the relevant regulations of CSRC and Shenzhen Stock Exchange as well as the Company's Articles of
Association Rules of Procedure of the Board of Directors and other systems paid close attention to the Company's standardized
operation and business situation and carefully studied the various proposals submitted to the Board of Directors for review based
on the Company's actual situation so as to ensure scientific decision-making and safeguard the legitimate rights and interests of
the Company and all shareholders.
602024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
VII. Information of Special Committees under the Board of Directors during the reporting
period
Important
Name of Number Other Details of
comments
the of Convening perform the
Members Content of the meeting and
Commit meeting date ance of objections
suggestions
tee s held duties (if any)
put forward
Reviewed the Proposal on Listing All the
and Transfer of the Assets Related members
to the Generating Units and present
February 6
Heavy Oil Processing Line of agreed to
2024
Shenzhen Nanshan Power the proposal
(Zhongshan) Power Co. Ltd. a without
Held Subsidiary of the Company objection
1. Reviewed the 2023 Annual
Performance Report of the
Strategy and Investment
All
Management Committee of the
members
Board of Directors
present at
2. Reviewed the Proposal on the
the meeting
Application for Comprehensive
April 10 had no
Credit and Provision of
2024 objection
Guarantees by the Company and
and agreed
Held Subsidiaries in 2024
to all
3. Reviewing the Proposal on
proposals of
Using Temporarily Idle Self-
the meeting
owned Funds of the Company for
Strategy Kong
the Deposit of Structured
and Guoliang
Deposits in 2024
Investm Hu Ming
Reviewed the Proposal on Re- All the
ent Huang
8 listing and Transfer of the Assets members
Manage Qing
Related to the Generating Units present
ment Chen May 31
and Heavy Oil Processing Line of agreed to
Commit Yuhui Wu 2024
Shenzhen Nanshan Power the proposal
tee Guowen
(Zhongshan) Power Co. Ltd. a without
Held Subsidiary of the Company objection
All the
Reviewed the Proposal on
members
Investing in the Project of the
present
July 18 300MW/600MWh Independent
agreed to
2024 Energy Storage Power Station in
the proposal
Cuiheng New Area Zhongshan
without
City (Phase I).objection
Reviewed the Proposal on the All the
Public Listing and Transfer of members
40% of the Equity of Huidong present
September
Xiefu Port Comprehensive agreed to
112024
Development Co. Ltd. by Xiefu the proposal
Company a Held Subsidiary of without
the Company. objection
Reviewed the Proposal on the All the
Investment by Shenzhen Nanshan members
October 23
Power Environmental Protection present
2024
(Shenzhen) Co. Ltd. a Wholly- agreed to
owned Subsidiary of the the proposal
612024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Company in Shenzhen Yuanzhi without
Zhongkai Energy Storage objection
Technology Innovation Private
Fund Partnership (Limited
Partnership) and the Related
Transactions.All the
members
Reviewed the Proposal on
present
November Applying for Credit Lines from
agreed to
25 2024 Financial Institutions by Pledge
the proposal
of Patents
without
objection
All the
Reviewed the Proposal on Re-
members
listing and Transferring the
present
December Relevant Assets of the Generating
agreed to
5 2024 Units of the Held Subsidiary
the proposal
Shenzhen Nanshan Power
without
(Zhongshan) Power Co. Ltd.objection
All the
members
Reviewed the 2023 Annual
present
April 8 Performance Report of the
agreed to
2024 Nomination Committee of the
the proposal
Board of Directors
without
objection
Chen
1. Reviewed the Proposal on the All
Zetong
2 Re-election of the Board of members
Hu Ming
Directors and the Election of present at
Du Wei
Non-independent Directors of the the meeting
May 31 Tenth Board of Directors had no
2024 2. Reviewed the Proposal on the objection
Nominat Re-election of the Board of and agreed
ion Directors and the Election of to all
Commit Independent Directors of the proposals of
tee Tenth Board of Directors the meeting
1. Reviewed the Proposal on the
Appointment of the Company's
All
General Manager
members
2. Reviewed the Proposal on the
present at
Appointment of the Company's
the meeting
Du Wei Deputy General Manager
June 20 had no
Hu Ming 1 3. Reviewed the Proposal on the
2024 objection
Ning Jie Appointment of the Company's
and agreed
Chief Financial Officer
to all
4. Reviewed the Proposal on the
proposals of
Appointment of the Company's
the meeting
Secretary of the Board of
Directors
Remune 1. Reviewed the 2023 Annual All
ration Performance Report of the members
Huang
and Remuneration and Appraisal present at
Xiqin Wu April 8
Assessm 1 Committee of the Board of the meeting
Guowen 2024
ent Directors had no
Du Wei
Commit 2. Reviewed the Management objection
tee Measures for the Remuneration and agreed
622024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
and Performance Appraisal of to all
Senior Officers proposals of
3. Reviewed the Proposal on the the meeting
2024 Annual Remuneration Plan
All the
Huang Reviewed the Proposal on the members
Xiqin Consideration of the 2024 Annual present
June 20
Huang 1 and Tenure Business Performance agreed to
2024
Qing Du Responsibility Letters of the the proposal
Wei Company's Management without
objection
Listening to and discussing the All the
Communication Letter between members
January 23 Certified Public Accountants and present at
2024 Those Charged with Governance the meeting
submitted by Lixinzhonglian have no
CPAS objection
1. Reviewed the 2023 Annual
Performance Report of the Audit
Committee of the Board of
Directors
2. Reviewed the full text and
summary of the 2023 Annual
Report
3. Reviewed the Proposal on the
2023 Final Financial Accounts
Report
4. Reviewed the Proposal on the
Provision and Reversal of Assets
Impairment in 2023
5. Reviewed the Proposal on the
Huang
Financial Write-off of Long-
Xiqin All
Audit outstanding Receivables and
Sun members
Commit 3 Payables in 2023
Huirong present at
tee 6. Reviewed the Proposal on the
Chen the meeting
2023 Annual Profit Distribution
Zetong April 8 had no
Plan
2024 objection
7. Reviewed the Proposal on the
and agreed
Adjustment of the Residual Value
to all
Rate of Fixed Assets and the
proposals of
Change in Accounting Estimates.the meeting
8. Reviewed the 2023 Evaluation
Report on Internal Control
9. Reviewed the 2023 Work
Summary of the Internal Audit
Institution and the 2024 Audit
Plan
10. Reviewed the 2023 Annual
Evaluation Report on the
Performance of the Accounting
Firm
11. Reviewed the Report on the
Performance of the Supervision
Duties by the Audit Committee of
the Board of Directors over the
Accounting Firm in 2023
April 24 1. Reviewed the 2024 First All
632024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
2024 Quarter Report members
2. Listened to the 2024 First present at
Quarter Report the meeting
3. Listened to the 2024 First had no
Quarter Work Report of the Audit objection
and Risk Control Department and agreed
to all
proposals of
the meeting
All the
members
Reviewed the Proposal on the present
June 20
Appointment of the Company's agreed to
2024
Chief Financial Officer the proposal
without
objection
All
1. Reviewed the full text and
members
summary of the 2024 Semi-
present at
annual Report
the meeting
2. Listened to the 2024 Semi-
August 20 had no
annual Final Financial Account
2024 objection
Report
and agreed
3. Listened to the 2024 Second
to all
Quarter Work Report of the Audit
proposals of
and Risk Control Department
the meeting
All
1. Reviewed the 2024 Third
members
Quarter Report
present at
2. Listened to the 2024 Third
the meeting
Quarter Financial Account Report
Huang October 22 had no
3. Listened to the 2024 Semi-
Xiqin 2024 objection
annual Audit Work Report
Huang 6 and agreed
4. Listened to the 2024 Third
Qing to all
Quarter Work Report of the Audit
Ning Jie proposals of
and Risk Control Department
the meeting
All
1. Reviewed the Proposal on members
Formulating the Management present at
System for the Appointment of the meeting
November the Accounting Firm had no
22 2024 2. Reviewed the Proposal on objection
Appointing the Audit Institutions and agreed
and Determining Their to all
Remuneration in 2024 proposals of
the meeting
All the
Reviewed the Proposal on the members
Scrapping of Assets of Shenzhen present
December
Nanshan Power (Zhongshan) agreed to
42024
Power Co. Ltd. a Held the proposal
Subsidiary without
objection
Listened to the 2024 Audit Plan All the
December of Shenzhen Nanshan Power Co. members
30 2024 Ltd. submitted by Lixinzhonglian present at
CPAS the meeting
642024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
have no
objection
8. Work of the Board of Supervisors
Whether the Board of Supervisors has identified any risks to the Company in its supervisory activities during the reporting period
□Yes □No
The Board of Supervisors has no objection to the supervision matters during the reporting period.
9. Employees
1. Number of employees professional composition and education background
Number of active employees of parent company at the end of
234
the reporting period
Number of active employees of major subsidiaries at the end of
58
the reporting period
Total number of active employees at the end of the reporting
292
period
Total number of employees receiving remuneration in the
289
current period
Number of retired employees whose the parent company and
0
major subsidiaries have to bear the expenses
Professional composition
Category Number
Production staff 64
Salesperson 8
Technical staff 57
Financial staff 12
Administrative staff 151
Total 292
Education background
Category Number
Junior college and technical secondary school education 123
Bachelor's degree 140
Master's degree or above 29
Total 292
2. Remuneration policy
The Board of Directors implements the principle of fixed basic salary + floating performance salary for the Company's annual
salary accrual. The remuneration of the Chairman shall be submitted to the General Meeting for approval and determination after
being reviewed and approved by the Board of Directors; The remuneration of senior officers at the level of General Manager and
Deputy General Manager shall be formulated by the Remuneration and Assessment Committee of the Board of Directors and
submitted to the Board of Directors for approval and determination. The remuneration of other personnel is authorized to be
managed by the Company's management team based on the principles of "fixing salary based on position" "getting paid according
to work" and "performance-oriented". Within the annual remuneration quota approved by the Board of Directors the Company
strictly controls the remuneration costs establishes a remuneration incentive mechanism linked to the performance of the
652024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
employees formulates the remuneration standards distribution plans assessment and rewards and punishment methods for the
personnel at all levels and is responsible for organizing and implementing them so as to give full play to the role of the incentive
role of the remuneration.
3. Training plan
The Company attaches great importance to employee training and has established a more complete training system. By
strengthening employee training it improves the job skills and comprehensive quality of the employees better meets the needs of
the Company's operation and management for talent and at the same time cultivates reserve talents for the Company's sustainable
development. During the reporting period in terms of safety training the Company has organized safety education and training
emergency rescue drills emergency response capability training etc. at all levels of the Company in accordance with the Work
Safety Law and other laws and regulations in respect of safety training so as to improve the safety awareness accident prevention
capabilities and business level of cadres and employees at all levels. In terms of on-the-job training the Company has adopted a
combination of expatriate learning and internal training carried out certified on-the-job training for key business and technical
positions to improve the capabilities of employees to perform their duties and also relied on the gas turbine simulation training
base to improve the practical operation and adaptability of power plant operators. In terms of training and learning of Party
members the Party organizations at all levels of the Company strictly implement the relevant work requirements of superiors
solidly carry out "three meetings and one lesson" integrate online and offline resources and build a normal and diversified
education and training system for Party members. At the same time through various forms such as red base research special
training visit and exchange and "Secretary's Party class" enrich the learning and education carriers lead the majority of Party
members to give full play to the vanguard and exemplary role and build a strong and powerful battle fortress of grassroots party
organizations.
4. Outsourcing of labor
□Applicable □Not applicable
X. Profit distribution and capitalization of capital reserve of the Company
The formulation implementation or adjustment of profit distribution policies especially cash dividend policies during the
reporting period
□Applicable □Not applicable
Profit distribution policy of the Company
(I) The Company implements a continuous and stable profit distribution policy taking into account the reasonable return on
investment of investors and the long-term development of the Company. The profit distribution of the Company shall not exceed
the scope of the accumulated profits available for distribution and shall not damage the going-concern ability of the Company
and shall adhere to the principle of distribution in the statutory order and non-distribution in the principle of non-distribution of
outstanding losses.(II) The Company's profit distribution may be made in cash in shares in a combination of cash and shares or in other ways
permitted by laws and regulations.(III) Conditions for cash dividends
1. With a positive annual or semi-annual distributable profit and abundant cash flow the implementation of cash dividends will
not affect the Company's subsequent going concern;
662024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
2. The audit institution issues a standard auditor's report with unqualified opinion on the Company's annual or semi-annual
financial report; or the auditor issues a non-standard unqualified auditor's report on the Company's annual or semi-annual financial
report but it does not affect the financial position operating results and cash flows of the year;
3. There are no major investment plans or major cash disbursements (except for projects with raised funds).
Major investment plans or major cash expenditures refer to the cumulative expenditures of the Company's proposed foreign
investment asset acquisition or equipment purchase in the next twelve months that reach or exceed 30% of the Company's latest
audited total assets.(IV) Under the condition of ensuring the full cash dividend distribution the Company may according to the accumulated profits
available for distribution the provident fund and the cash flow adopt the stock dividend method for profit distribution in order to
maintain the expansion of share capital in line with the growth of performance on the premise of ensuring the minimum cash
dividend ratio and the reasonable scale of the Company's share capital.(V) On the premise of complying with the Company's profit distribution principles meeting the conditions for cash dividends and
ensuring the Company's normal operation and long-term development the Company will actively distribute dividends in cash. In
principle cash dividends will be distributed once a year and the amount of cash dividends shall not be less than 10% of the
distributable profit realized in that year. Within any three consecutive accounting years the cumulative amount of profits
distributed in cash by the Company shall not be less than 30% of the average annual distributable profit realized in these three
years.(VI) The Board of Directors may propose interim cash dividends based on the Company's profitability and capital needs.(VII) After the Company's general meeting makes a resolution on the profit distribution plan the Board of Directors shall
complete the distribution of dividend (or shares) within 2 months after the general meeting is held.Special instructions for cash dividend policy
Whether it complies with the Articles of Association or the resolutions of
Yes
the General Meeting:
Whether the dividend standards and proportions are explicit and clear: Yes
Whether relevant decision-making procedures and mechanisms are
Yes
complete:
Whether the Independent Directors have fulfilled their duties and played
Yes
their due role:
If the Company does not make cash dividends it shall disclose the
specific reasons and the next measures to be taken to enhance the return Yes
level of investors:
Whether minority shareholders have the opportunity to fully express their
opinions and demands and whether their legitimate rights and interests Yes
are fully protected:
Whether the conditions and procedures are compliant and transparent if
Yes
the cash dividend policy is adjusted or changed:
During the reporting period the Company are profitable and the parent company's profits available for distribution to shareholders
are positive but no cash dividend distribution plan has been put forward
□Applicable □Not applicable
672024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Reasons for not proposing a cash dividend distribution plan
when the Company has made a profit during the reporting
Use and use plan of the Company's undistributed profits
period and the distributable profit available to shareholders in
the parent company is positive
The Company is still under great operating pressure and is in a
critical period of simultaneous progress in assets in stock
To replenish the operating cash flow and make adequate
operation and transformation and development which makes it
reserve of funds for subsequent transformation and
difficult to meet the relevant provisions of the Articles of
development.Association on profit distribution conditions. Therefore the
Company does not intend to distribute cash dividends in 2024.Profit distribution and capitalization of capital reserve during the reporting period
□Applicable □Not applicable
Number of bonus shares issued per 10 shares (shares) 0
Amount of dividend per 10 shares (RMB) (including tax) 0
Number of shares converted for every 10 shares (shares) 0
Share capital base of distribution plan (shares) 602762596
Amount of cash dividends (RMB) (tax included) 0.00
Amount of cash dividends paid by other means (such as
0.00
repurchase of shares) (RMB)
Total cash dividends (including other methods) (RMB) 0
Distributable profit (RMB) 185255604.81
Proportion of total cash dividends (including other methods) in
0
total profit distribution
Cash dividends this time
Others
Details of profit distribution and conversion of capital reserves into share capital
None
XI. Implementation of the Company's equity incentive plan employee stock ownership plan
or other employee incentive measures
□Applicable □Not applicable
The Company has no equity incentive plan employee stock ownership plan or other employee incentive measures and their
implementation during the reporting period.XII. Construction and implementation of the internal control system during the reporting
period
1. Construction and implementation of internal control
In accordance with the provisions of the Basic Standard for Enterprise Internal Control and its supporting guidelines the Company
has established an organizational system for comprehensive risk management and internal control with the Board of Directors
responsible the Board of Supervisors supervising the Compliance and Risk Management Committee coordinating and leading
the Audit and Risk Control Department organizing implementation and evaluation and all departments and affiliated enterprises
fully performing their duties to supervise and evaluate the Company's internal control management. The Company effectively
prevents risks in operation and management and promotes the realization of internal control objectives through the operation
analysis and evaluation of the internal control system.
682024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
2. Details of major defects in internal control identified during the reporting period
□Yes □No
XIII. Management and control of subsidiaries by the Company during the reporting period
The Company has formulated management systems such as the Property Rights Management Measures the Post-investment
Management Measures and the List of Rights and Responsibilities of the Company and Nanshan Power Plant and its Subordinate
Holding Enterprises which can achieve the effects of clarifying authority specifying responsibilities improving efficiency
optimizing resource allocation and standardizing enterprise management and can meet the needs of the Company's overall
development strategy.XIV. Evaluation Report on Internal Control or Audit Report on Internal Control
1. Evaluation Report on Internal Control
Date of disclosure of full text of
April 23 2025
Evaluation Report on Internal Control
Full-text disclosure index of Evaluation
2024 Evaluation Report on Internal Control cninfo.com.cn http://www.cninfo.com.cn
Report on Internal Control
Ratio of the total assets of the unit
included in the evaluation scope to the
84.19%
total assets of the Company's
consolidated financial statements
Ratio of operating revenue of the unit
included in the evaluation scope to
99.96%
operating revenue of the Company's
consolidated financial statements
Defect identification standards
Category Financial report Non-financial report
Major defects: under major business Major defects: under major business
activities many consolidated statements activities many consolidated statements
companies have serious defects; Or a few companies have serious defects; Or a few
consolidated statements companies have consolidated statements companies have
serious defects but the companies with serious defects but the companies with
serious defects are the main participant serious defects are the main participant
in the major business activities; in the major business activities;
Great defects: under major business Great defects: under major business
activities a few consolidated statements activities a few consolidated statements
companies have serious defects and the companies have serious defects and the
companies with serious defects are not companies with serious defects are not
the main participants in the major the main participants in the major
Qualitative standards
business activities; Or multiple business activities; Or multiple
consolidated statements companies have consolidated statements companies have
moderate defects; Or a few consolidated moderate defects; Or a few consolidated
statements companies have moderate statements companies have moderate
defects but the companies with moderate defects but the companies with moderate
defects are the main participants in the defects are the main participants in the
major business activities; major business activities;
General defect: in major business General defect: in major business
activities a few companies sharing activities a few companies sharing
consolidated statements have moderate consolidated statements have moderate
defect and these companies with defect and these companies with
moderate defect are not the main moderate defect are not the main
692024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
participants in the major business participants in the major business
activities; Or companies share activities; Or companies share
consolidated statements only have consolidated statements only have
common defects; Or there are no defects common defects; Or there are no defects
in internal control in major business in internal control in major business
activities with only defects in internal activities with only defects in internal
control in non-major business activities. control in non-major business activities.Major defects: misstated amount is ≥ Major defect: amount of direct loss ≥
0.5% of total assets in the consolidated 0.5% of total assets in the consolidated
statements; statements;
Great defect: 0.2% of total assets in the Great defect: 0.2% of total assets in the
consolidated statements ≤ misstated consolidated statements ≤ amount of
Quantitative standards
amount < 0.5% of total assets in the direct loss < 0.5% of total assets in the
consolidated statements; consolidated statements;
General defect: misstated amount < 0.2% General defect: amount of direct losses <
of total assets in the consolidated 0.2% of total assets in the consolidated
statements. statements.Number of major defects in financial
0
reports
Number of major defects in non-financial
0
reports
Number of great defects in financial
0
reports
Number of great defects in non-financial
0
reports
2. Audit Report on Internal Control
□Applicable □Not applicable
Considerations in Audit Report on Internal Control
The accounting firm believes that Shenzhen Nanshan Power Co. Ltd. has maintained effective financial report on internal control
in all material aspects in accordance with the Basic Standards for Enterprise Internal Control and relevant regulations.Disclosure of the auditor's report on internal control Disclosed
Full-text disclosure date of the Audit Report on Internal
April 23 2025
Control
Full-text disclosure index of the Audit Report on Internal 2024 Audit Report on Internal Control
Control http://www.cninfo.com.cn
Opinion type of the internal auditor's report Standard unqualified opinion
Whether there are major defects in the non-financial report No
Whether the accounting firm issues an Audit Report on Internal Control with non-standard opinions
□Yes □No
Whether the Audit Report on Internal Control issued by the accounting firm is consistent with the self-evaluation report of Board
of Directors
□Yes □No
702024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
XV. Rectification of issues found in the self-examination of the special action on corporate
governance of the listed company
The self-examination and rectification of the special action on corporate governance of the listed company has been completed in
2021. During the reporting period the Company strictly followed the relevant laws and regulations closely focused on the
Company's development strategy diligently performed its obligations and exercised its powers conscientiously implemented
various resolutions of the General Meeting actively and effectively carried out various tasks of Board of Directors and effectively
safeguarded the legitimate rights and interests of the Company and all its shareholders.
712024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Section V Environmental and social responsibilities
I. Major environmental protection issues
Whether the listed company and its subsidiaries are key pollutant-discharging units announced by the environmental protection
department
□Yes □No
1. Policies and industry standards related to environmental protection
The Company belongs to the thermal power generation industry under the national economic classification 4411 and is currently
implementing the Emission Standards of Air Pollutants for Thermal Power Plants GB-13223-2011. At the same time its affiliated
Nanshan Power Plant strictly controls nitrogen oxide emissions in accordance with the 2018 "Shenzhen Blue" Sustainable Action
Plan.
2. Administrative licenses for environmental protection
Nanshan Power Plant the Company's subsidiary has obtained a pollutant discharge license issued by the Nanshan Administration
Bureau of Shenzhen Ecological Environment Bureau with license No. of 91440300764983799T001P.
3. Industry emission standards and specific information on the pollutant emissions involved in production
and operating activities
Types of Names
Name of
main of main Emissio Total
the Number Distribut
pollutant pollutant n Pollutant Total approve Excessiv
Compan Emissio of ion of
s and s and concentr emission emissio d e
y or n mode discharg discharg
specific specific ation/int standards ns emission emission
subsidiar e outlets e outlets
pollutant pollutant ensity s
y
s s
Concentr
Shenzhe Inside "Shenzhe
ated
n the n Blue"
Nitrogen Nitrogen emission <15 52.27 686.25
Nanshan 3 Nanshan emission None
oxides oxides of boiler mg/m3 tons tons
Power Power standard
and
Co. Ltd. Plant <15mg/m3
chimney
4. Treatment of pollutants
Shenzhen Nanshan Power Co. Ltd. owns three sets of 9E units all of which adopt the DLN1.0+ low-nitrogen combustion system
of General Electric Company. During the reporting period the Company strictly abided by the national environmental protection
laws and regulations and the pollutants discharged met the national discharge standards. There were no environmental pollution
accidents nor were there any penalties imposed by relevant departments due to major environmental protection problems.
5. Emergency plan for environmental emergencies
The emergency plan for sudden environmental incidents has been filed with the Guangdong Provincial Environmental Protection
Department and the corresponding municipal environmental protection bureau.
6. Environmental self-monitoring plan
722024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
An environmental self-monitoring plan has been prepared and reviewed by the environmental protection department; The
monitoring data was disclosed timely on the environmental protection department’s website.
7. Information on investment in environmental governance and protection and payment of environmental
protection tax
The Company attaches great importance to environmental protection and strengthens on-site management by carrying out special
tasks such as the investigation of potential environmental risks and standardized management of hazardous waste; In addition the
Company continues to increase investment on the maintenance of environmental protection facilities and improves environmental
protection infrastructure. All these initiatives have greatly improved the level of pollution prevention and control. The Company
pays environmental protection tax in strict accordance with the Presidential Order No. 61 of the Environmental Protection Tax
Law of the People's Republic of China and other relevant laws and regulations.
8. Measures taken to reduce carbon emissions during the reporting period and the results
□Applicable □Not applicable
During the reporting period the power plants subordinate to the Company continuously improved the unit efficiency and reduced
carbon emissions by taking measures such as the technical renovation of the boiler's online flue gas system.
9. Administrative penalties for environmental issues during the reporting period
None
10. Other environmental information that shall be disclosed
None
11. Other environmental protection related information
None
The Company shall comply with the disclosure requirements for power supply industry in the Shenzhen Stock Exchange Listed
Company Self-Regulatory Guidelines No. 3 - Industry Information Disclosure
12. Information on environmental accidents occurring in the listed company
None
II. Social responsibilities
In 2024 although the Company faced many challenges in production operation and management the Company had the courage to
assume social responsibilities actively ensured power supply when the cost and price of power generation were seriously inverted
and conscientiously performed its social responsibilities to the best of its ability. In terms of work safety the Company has been
adhering to the principle of work safety making every effort to ensure the safety and stability of power production actively
exploring the work safety management model under new business and new formats optimizing and improving the internal work
safety management system and mechanism of the Company and carrying out work safety technical supervision and innovation
management in an orderly manner thus achieving the goal of "five-noes" in work safety. In terms of environmental protection the
Company strictly complied with national and local environmental protection regulations and always adhered to the concept of
clean power generation and circular economy development. All environmental protection work was effectively implemented with
environmental protection emission meeting the requirement and no environmental pollution accidents. In terms of love assistance
the Company thoroughly implemented the strategic decision-making and deployment of the central government for rural
732024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
revitalization implemented the task of fixed-point assistance for rural revitalization in towns and villages and dispatched a town-
based assistance personnel to actively play a unique role in consumption assistance. The Company has also achieved a cumulative
amount of consumption assistance of about RMB 150000 per year by purchasing agricultural products from the work sites in the
town helping the sales of agricultural products inside and outside the province and helping the in-depth implementation of the
"High-quality Development Project for Hundreds of Counties Thousands of Towns and Tens of Thousands of Villages" with solid
actions and good results.III. Consolidation and enhancing of the results of poverty eradication and rural
revitalization
In 2024 the Company thoroughly implemented the strategic decision-making and deployment of the central government for rural
revitalization implemented the task of fixed-point assistance for rural revitalization in towns and villages and dispatched a town-
based assistance personnel to actively play a unique role in consumption assistance. The Company has also achieved a cumulative
amount of consumption assistance of about RMB 150000 per year by purchasing agricultural products from the work sites in the
town helping the sales of agricultural products inside and outside the province and helping the in-depth implementation of the
"High-quality Development Project for Hundreds of Counties Thousands of Towns and Tens of Thousands of Villages" with solid
actions and good results.
742024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Section VI Important matters
I. Fulfillment of commitments
1. Commitments made by the Company’s actual controller shareholders related parties acquirers and
the Company that have been fulfilled during the reporting period and have not yet been fulfilled by the
end of the reporting period
□Applicable □Not applicable
During the reporting period there were no commitments made by the Company’s actual controller shareholders related parties
acquirers and the Company that were fulfilled during the reporting period and had not yet been fulfilled by the end of the reporting
period.
2. If there is a profit forecast for the Company's assets or projects and the reporting period is still in the
profit forecast period the company shall explain that the assets or projects have met the original profit
forecast and the reasons for that.□Applicable □Not applicable
II. Non-operating capital occupation of the listed company by controlling shareholders and
other related parties
□Applicable □Not applicable
There was no non-operational occupation of funds by the controlling shareholder or other related parties of the listed company
during the reporting period.III. Illegal external guarantees
□Applicable □Not applicable
The Company had no illegal external guarantees during the reporting period.IV. Statement of the Board of Directors on the latest "Non-standard Audit Report"
□Applicable □Not applicable
V. Explanation of the "Non-standard Audit Report" issued by the accounting firm for the
reporting period by the Board of Directors Board of Supervisors and independent directors
(if any)
□Applicable □Not applicable
VI. Description of changes in accounting policies accounting estimates or correction of
major accounting errors compared with the previous year's financial report
□Applicable □Not applicable
1. Significant changes in accounting policies
Names of report items Affected
Content and reasons for changes in accounting policies
significantly affected amount
752024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
In October 2023 the Ministry of Finance issued the Interpretation No. 17 of
the Accounting Standards for Business Enterprises (CK [2023] No. 21) which
stipulates the relevant contents of "the division of current liabilities and non-
current liabilities" "the disclosure of financing arrangements of the supplier" No impact 0.00
and "the accounting treatment of after-sales leaseback transactions". The
interpretation shall come into force as of January 1 2024 and be implemented
by the Company as of January 1 2024.In March 2024 and December 2024 the Ministry of Finance compiled and
issued the Compilation of Application Guidelines for Accounting Standards for
Business Enterprises 2024 and issued the Accounting Standards for Business
Enterprises Interpretation No. 18 (CK [2024] No. 24) stipulating that the
estimated liabilities arising from the quality assurance that does not belong to
the individual performance obligation shall be included in the "primary No impact 0.00
business costs" and "other business costs" according to the determined amount
and shall no longer be included in the "selling and distribution expenses". The
Interpretation shall come into force as of the date of issuance and the
Company shall implement the Interpretation No. 18 of the Accounting
Standards for Business Enterprises as of January 1 2024.
2. Changes in significant accounting estimates
Changes in accounting
Approval
Content and reasons for changes in accounting estimates estimates Remark
procedure
Effective time point
In order to further strengthen the management of fixed assets by
sorting out the fixed assets card information of the Company and its It has been
held subsidiary and combining with the actual use of the Company's reviewed and
fixed assets the Company in accordance with the principle of approved by the Effective from January 1
prudence adjusted the net residual value rate of the fixed assets of Board of Directors 2024
house decoration machinery equipment (except for gas turbine and the Board of
generator unit) means of transport electronic equipment and other Supervisors
equipment from the original 10% to 0-5%.Notes to changes in accounting estimates: for details of the changes in accounting estimates of the Company please refer to the
Announcement No. 2024-022 Announcement of Shenzhen Nanshan Power Co. Ltd. on Adjustment of Residual Value Rate of
Fixed Assets and Changes in Accounting Estimates.VII. Explanation of changes in the scope of consolidated statements compared with the
previous year's financial report
□Applicable □Not applicable
In July 2024 the Company's held subsidiary Shenzhen Nanshan Power (Zhongshan) Power Co. Ltd. contributed RMB 51
million (accounting for 51%) in kind to establish Shenzhen Nanshan Power Xiwan Energy (Zhongshan) Co. Ltd. with Zhongshan
Nanlang Construction Development Co. Ltd. The project was included in the scope of consolidated statements of the Company
during the reporting period.VIII. Appointment and dismissal of the accounting firm
Current accounting firm
Name of the domestic accounting firm Lixinzhonglian CPAS (Special General Partnership)
Remuneration of the domestic accounting firm (RMB 10000) 65
Length of audit services provided by the domestic accounting firm 6
Name of certified public accountant of domestic accounting firm Cao Wei Li Mincong
Length of audit services provided by certified public accountant of the
51
domestic accounting firm
762024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Whether to hire a new accounting firm during the current period
□Yes □No
Recruitment of accounting firm financial consultants or sponsors for internal control audit
□Applicable □Not applicable
During the reporting period the Company appointed Lixinzhonglian CPAS (Special General Partnership) as the accounting firm
for the internal control audit of the Company for the year 2024 and paid RMB 210000 for the internal control audit fee.IX. Possible delisting after the disclosure of the annual report
□Applicable □Not applicable
X. Matters related to bankruptcy and reorganization
□Applicable □Not applicable
The Company had no bankruptcy or reorganization related matters during the reporting period.XI. Major litigation and arbitration matters
□Applicable □Not applicable
The Company had no major litigation or arbitration matters during the reporting period.XII. Punishment and rectification
□Applicable □Not applicable
The Company had no penalties or rectifications during the reporting period.XIII. Integrity of the Company its controlling shareholders and actual controllers
□Applicable □Not applicable
During the reporting period the Company and the its largest shareholder did not fail to fulfill the effective court judgments or had
large amounts of debts that were not repaid at maturity and were in good standing in terms of integrity. The company had no
controlling shareholder or actual controller during the reporting period.XIV. Major related transactions
1. Related transactions related to daily operations
□Applicable □Not applicable
Pricin Amou Propo Appro Whet Settle Availa
Type Detail g Price nt of rtion ved her ment ble
of s of princi of relate in the tradin the metho marke
Relati Disclo Disclo
Related relate relate ples relate d amou g appro d of t price
onshi sure sure
party d d of d transa nt of quota ved relate of
p date index
transa transa relate transa ctions simila (RMB limit d simila
ctions ctions d ctions (RMB r 1000 is transa r
transa 1000 transa 0) excee ctions transa
772024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
ctions 0) ctions ded ctions
Provis
ion of
energ
y Energ
Anno
Relate mana y
Mont unce
Shenzhen d geme mana Not April
Fair Marke 122.6 hly ment
MTC legal nt geme 0.28% 120 Yes applic 12
value t price 9 settle No.:
Co. Ltd. perso servic nt able 2024
ment 2024-
n es to servic
025
relate es
d
perso
ns
Purch
Artron
ase of Anno
Art Relate
goods unce
(Group) d Purch Single Not April
from Fair Marke ment
Co. Ltd. legal ase of 2.89 0.01% 20 No settle applic 12
relate value t price No.:
and its perso goods ment able 2024
d 2024-
subsidiari n
partie 025
es
s
Provis
China ion of
Techn
Science techni
Relate ical
and cal
d transf Not Single Not Not Not
Technolo servic Fair Marke
legal ormati 5.88 0.01% applic settle applic applic applic
gy es to value t price
perso on able ment able able able
Develop relate
n servic
ment Co. d
e
Ltd. perso
ns
Rende
ring
Prope Anno
Relate of
Shenzhen rty Annu unce
d servic Not Januar
Energy custod Fair Marke 440.4 al ment
legal es to 0.99% No applic y 25
Corporati y value t price 4 settle No.:
perso relate able 2024
on servic ment 2024-
n d
e 005
partie
s
Provis
Shenzhen ion of
Clou techni Engin
Relate
Electroni cal eering
d Not Single Not Not Not
cs Co. servic install Fair Marke
legal 25.27 0.06% applic settle applic applic applic
Ltd. and es to ation value t price
perso able ment able able able
its relate servic
n
subsidiar d es
y perso
ns
597.1
Total - - - 140 - - - - -
7
Details of large-amount sales returns None
The actual performance during the It is expected that related transactions with Artron Art (Group) Co. Ltd. and its subsidiaries
reporting period (if any) if the total will amount to RMB 200000 in 2024. The total amount of daily related transactions that
782024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
amount estimated by category of the occurred during the reporting period is within the approved scope; It is expected that the
daily related transactions expected to amount of daily related transactions with Shenzhen MTC Co. Ltd. will be RMB 1.2
occur in the current period million. However the actual transaction amount is RMB 1226900. This is due to the fact
that Shenzhen Nanshan Power Environmental Protection Company a wholly-owned
subsidiary of the Company provided energy management services to Shenzhen MTC Co.Ltd. According to the actual operation of the project the actual transaction amount is
slightly higher than the expected amount. Since the excess amount is negligible it does not
meet the criteria for special disclosure. The wholly-owned subsidiaries Shenzhen Nanshan
Power Gas Turbine Engineering Technology (Shenzhen) Co. Ltd. and Shenzhen Nanshan
Power Environmental Protection (Shenzhen) Co. Ltd. respectively provided engineering
installation services and technical transformation services to Sichuan Ruinan Electric Power
Construction Engineering Co. Ltd. and China Science and Technology Development Co.Ltd. which are not expected in early 2024 and the transaction amount is relatively small.Reasons for large differences between
transaction prices and market Not applicable
reference prices (if applicable)
2. Related transactions involving acquisition or sale of assets or equity
□Applicable □Not applicable
The Company had no related transactions involving acquisition or sale of assets or equity during the reporting period.
3. Related transactions involving joint external investment
□Applicable □Not applicable
Registered Total assets
Net assets of Net profit of
Relati Primary capital of the of the
Name of the the investee the investee
Co-investors onshi business of investee investee
investee (RMB (RMB
p the investees (RMB (RMB
10000)10000)
10000)10000)
Engage in
equity
Shenzhen
Shenzhen Capital investments
New Energy
Holdings Co. Ltd. Relate investment
Storage
Shenzhen Yuanzhi d management
Industry
Energy Storage legal asset 651000 325572.40 325572.40 345.24
Equity Fund
Private Fund perso management
Partnership
Management Co. n and other
(Limited
Ltd. etc. activities
Partnership)
with private
funds.Shenzhen Yuanzhi
Energy Storage Shenzhen Engage in
Private Fund Yuanzhi equity
Management Co. Zhongkai investments
Ltd. Shenzhen Relate Energy investment
Zhongke Incubation d Storage management
Equity Investments legal Technology asset 40000 - - -
Fund Management perso Innovation management
Co. Ltd. Shenzhen n Private Fund and other
New Energy Storage Partnership activities
Industry Equity (Limited with private
Fund Partnership Partnership) funds.(Limited
792024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Partnership) China
Science and
Technology
Development Co.Ltd. etc.
4. Related credit and debt accounts
□Applicable □Not applicable
The Company had no related credit and debt accounts during the reporting period.
5. Transactions with financial companies that have relationship with the Company
□Applicable □Not applicable
There were no deposits loans credit or other financial business between the Company and financial companies with relationship
and related parties.
6. The transactions between financial companies controlled by the Company and related parties
□Applicable □Not applicable
There were no deposits loans credit or other financial business between financial companies controlled by the Company and
related parties.
7. Other major related transactions
□Applicable □Not applicable
After review and approval at the 22nd extraordinary meeting of the Ninth Board of Directors of the Company Xiefu Company the
Company and the Energy Corporation signed the Property Entrustment Management Contract in which the Company acts as the
supervisory and guiding unit and Xiefu Company provides property lease management services to the Energy Corporation.Related queries on the website of interim report disclosure of major related transactions
Website name of the interim
Name of the interim announcement Disclosure date of interim announcement
announcement disclosure
Announcement on the Property Lease
Management Service and Related
Transactions of Shenzhen Energy
January 25 2024 cninfo.com.cn Securities Times
Corporation by Shenzhen Xiefu Energy
Co. Ltd. a Held Subsidiary of the
Company
XV. Major contracts and their performance
1. Custody contracting and lease matters
(1) Custody
□Applicable □Not applicable
The Company had no custody during the reporting period.
802024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
(2) Contracting
□Applicable □Not applicable
The Company had no contracting during the reporting period.
(3) Lease
□Applicable □Not applicable
The Company had no lease during the reporting period.
2. Material guarantee
□Applicable □Not applicable
The Company had no material guarantee during the reporting period.
3. Entrusting others to asset management
(1) Entrusted wealth management
□Applicable □Not applicable
The Company had no entrusted wealth management during the reporting period.
(2) Entrusted loans
□Applicable □Not applicable
The Company had no entrusted loans during the reporting period.
4. Other major contracts
□Applicable □Not applicable
The Company had no other significant contracts during the reporting period.XVI. Description of other major matters
□Applicable □Not applicable
1. New energy storage industry equity fund matters: in February 2024 the Company jointly signed the Shenzhen New Energy
Storage Industry Equity Fund Partnership (Limited Partnership) Partnership Agreement with 11 parties including Shenzhen
Capital Holdings Co. Ltd. Shenzhen Yuanzhi Energy Storage Private Fund Management Co. Ltd. and SHENZHEN ENERGY
Corporation. In March 2024 the Company completed the first installment of the capital contribution (i.e. 50% of the subscribed
capital contribution) of the Energy Storage Fund and has completed the registration procedures for the industrial and commercial
changes of the Energy Storage Fund on February 29 2024 and has completed the procedures for the change of information related
to the private investment funds on March 14 2024 in the Asset Management Association of China. (For details please refer to the
relevant announcements disclosed by the Company in the Securities Times and cninfo.com.cn Announcement No.: 2024-012 014)
2. Matters related to the land of Nanshan Power Plant: in 2024 the Company accessed the Notice of Shenzhen Municipal
Bureau of Planning and Natural Resources on Issuing the Shenzhen Land Consolidation Plan for 2024 again from the official
website of Shenzhen Municipal Bureau of Planning and Natural Resources. Shenzhen Land Consolidation Plan for 2024 still
includes the land acquisition and storage of Nanshan Power Plant and related contents which is no substantial change from the
812024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
contents of the land preparation plan disclosed in recent years. For details please refer to the relevant announcements disclosed by
the Company in the Securities Times and cninfo.com.cn (Announcement No.: 2024-067)
Except for the above matters the refunds due to the Company's "Project Technical Transformation Benefit Fund" had no progress
or change during the reporting period.XVII. Major events of the Company's subsidiaries
□Applicable □Not applicable
The Listing and Transfer of Generating Units of Shenzhen Nanshan Power Zhongshan Company: On February 6 and February 26
2024 the Company convened the 23rd Extraordinary Meeting of the Ninth Board of Directors the 12th Extraordinary Meeting of
the Ninth Board of Supervisors and the Second Extraordinary General Meeting of 2024 respectively. During these meetings the
Proposal on Listing and Transfer of the Assets Related to the Generating Units and Heavy Oil Processing Line of Shenzhen
Nanshan Power (Zhongshan) Power Co. Ltd. a Held Subsidiary of the Company was reviewed and approved granting
authorization for the listing and transfer of two sets of generating units along with their auxiliary equipment as well as the heavy
oil processing line equipment and spare parts of Shenzhen Nanshan Power Zhongshan Company through the Shenzhen United
Property and Equity Exchange; On May 31 and June 20 2024 the 25th extraordinary meeting of the Ninth Board of Directors the
14th extraordinary meeting of the Ninth Board of Supervisors and the third extraordinary general meeting in 2024 of the Company
reviewed and approved the Proposal on the Re-listing and Transfer of the Assets Related to the Generating Units and Heavy Oil
Processing Line of Shenzhen Nanshan Power (Zhongshan) Power Co. Ltd. a Held Subsidiary of the Company and agreed to re-
list and transfer the two sets of generating units and auxiliary equipment heavy oil treatment line equipment and spare parts of
Shenzhen Nanshan Power Zhongshan Company on the Shenzhen United Property and Equity Exchange. As of the disclosure date
of this annual report Shenzhen Nanshan Power Zhongshan Company has signed the Physical Asset Transaction Contract with
Fujian Hengjing Investment Co. Ltd. and the transfer of generating unit equipment and related assets has been successful. (For
details please refer to the relevant announcements disclosed by the Company on the Securities Times and cninfo.com.cn with
Announcement No.: 2024-008 009 010 013 032 033 035 043 068 069 070 075 2025-002)
822024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Section VII Changes in shares and shareholders
I. Changes in shares
1. Changes in shares
Unit: Share
Before the change Increase or decrease in the change (+ -) After the change
Conversio
Issuance n of Bonus
Quantity Scale of new provident Others Subtotal Quantity Scale
shares
shares fund into
shares
I. Shares
subject to
selling 12994 0.0022% -12994 -12994 0 0.00%
restriction
s
1. State
sharehold
ing
2.
State-
owned
legal
person
sharehold
ing
3.
Other
domestic 12994 0.0022% -12994 -12994 0 0.00%
sharehold
ings
Inclu
ding:
domestic
legal
person
sharehold
ing
Dom
estic
natural
129940.0022%-12994-1299400.00%
person
sharehold
ing
4.
Foreign
sharehold
ing
Inclu
ding:
832024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
foreign
legal
person
sharehold
ing
Forei
gn natural
person
sharehold
ing
II. Shares
without
60274966027625
selling 99.9978% 12994 12994 100.00%
0296
restriction
s
1.
RMB 3388951 3389081
56.2236%129941299456.2258%
ordinary 56 50
shares
2.
Domestic
26385442638544
-listed 43.7742% 43.7742%
4646
foreign
shares
3.
Overseas-
listed
foreign
shares
4.
Others
III. Total
60276256027625
number of 100.00% 0 0 100.00%
9696
shares
Reasons for changes in shares
□Applicable □Not applicable
At the end of the reporting period Ms. Zhang Jie left her post for 6 months and her original term of office expired for 6 months
and her 17325 A shares of the Company were all unlocked in accordance with relevant regulations.Approval status of changes in shares
□Applicable □Not applicable
Transfer status of changes in shares
□Applicable □Not applicable
The impact of changes in shares on basic earnings per share and diluted earnings per share net assets per share attributable to the
Company's ordinary shareholders and other financial indicators in the most recent year and the most recent period
□Applicable □Not applicable
842024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Other information that the Company deems necessary or that securities regulators require to be disclosed
□Applicable □Not applicable
2. Changes in shares with selling restrictions
□Applicable □Not applicable
Unit: Share
Number of
Beginning Increase in
restricted Ending number Date of lifting
number of restricted Reasons for
Name shares lifted in of restricted sales
restricted shares in the sales restriction
the current shares restrictions
shares current period
period
Ms. Zhang Jie
used to be the
Deputy General
Manager of the
Company and
her original
term of office
was until April
October 26
Zhang Jie 12994 0 12994 0 26 2024.
2024
According to
relevant
regulations
part of the
Company's
shares held by
her was
restricted.Total 12994 0 12994 0 -- --
II. Issuance and listing of securities
1. Securities issuance (excluding preferred shares) during the reporting period
□Applicable □Not applicable
2. Explanation of changes in the Company's total number of shares and shareholder structure and
changes in the Company's asset and liability structure
□Applicable □Not applicable
3. Existing internal employee shares
□Applicable □Not applicable
III. Shareholders and actual controllers
1. Number of the Company's shareholders and shareholding status
Unit: Share
Total Total Total Total number of preferred
396094042400
number of number of number of shareholders whose voting
852024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
ordinary ordinary preferred right were restored at the
shareholder shareholder shareholder end of the previous month
s at the end s at the end s whose before the annual report
of the of the voting right disclosure date (if any)
reporting previous were (see Note 8)
period month restored at
before the the end of
annual the
report reporting
disclosure period (if
date any) (see
Note 8)
Shareholding status of shareholders holding more than 5% of the shares or the top 10 shareholders (excluding shares lent through
refinancing)
Number of Increases Pledge marking or
shares held and Number of Number of freezing
Nature of Shareholdi at the end decreases shares held shares with
Name
shareholder ng ratio of the during the with selling selling Share
reporting reporting restrictions restrictions Quantity status
period period
HONG
KONG
Overseas
NAM HOI Not
legal 15.28% 92123248 0 0 92123248 0
(INTERNA applicable
person
TIONAL)
LTD
Shenzhen State-
Guangju owned Not
12.22%7366682400736668240
Industrial legal applicable
Co. Ltd. person
Shenzhen State-
Energy owned Not
10.80%6510613000651061300
Corporatio legal applicable
n person
Domestic
Not
Zeng Ying natural 1.19% 7159600 0 0 7159600 0
applicable
person
GUOTAI
JUNAN
SECURITI Overseas
Not
ES legal 1.09% 6592879 4436997 0 6592879 0
applicable
（HONG personKONG）
LIMITED
Domestic
Not
Li Baoqin natural 0.97% 5835773 2787623 0 5835773 0
applicable
person
China
Merchants
Overseas
Securities Not
legal 0.90% 5438154 107300 0 5438154 0
(Hong applicable
person
Kong) Co.Ltd.BOCI Overseas
Not
SECURITI legal 0.73% 4423066 -7098982 0 4423066 0
applicable
ES person
862024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
LIMITED
LISHERY Overseas
Not
NZHANMI natural 0.69% 4149400 143441 0 4149400 0
applicable
NG person
Haitong
Internation
al
Overseas
Securities Not
legal 0.65% 3908357 0 0 3908357 0
Company applicable
person
Limited-
Account
Client
Strategic investors or general legal persons
becoming the top 10 shareholders due to None
allotment of new shares (if any) (see Note 3)
1. Shenzhen Energy Corporation holds 100% equity in HONG KONG NAM
Explanation of the above-mentioned HOI (INTERNATIONAL) LTD
shareholders' relationship or concerted actions 2. The Company is unaware of whether the above-mentioned other public
shareholders have any relationship or are persons acting in concert.Explanation of the circumstances in which the
above-mentioned shareholders involve
None
entrusted voting right and abstention from
voting right
Special note on the existence of a special
repurchase account among the top 10 None
shareholders (if any) (see Note 10)
The shareholding situation of the top 10 shareholders with unrestricted tradable shares (excluding shares lent out through
refinancing and senior executive/locked shares)
Number of shares without Type of shares
selling restrictions held at
Name
the end of the reporting Type of shares Quantity
period
HONG KONG NAM HOI
92123248 Domestic listed foreign shares 92123248
(INTERNATIONAL) LTD
Shenzhen Guangju Industrial Co. Ltd. 73666824 RMB ordinary shares 73666824
Shenzhen Energy Corporation 65106130 RMB ordinary shares 65106130
Zeng Ying 7159600 Domestic listed foreign shares 7159600GUOTAI JUNAN SECURITIES（HONG
6592879 Domestic listed foreign shares 6592879KONG） LIMITED
RMB ordinary shares 2790000
Li Baoqin 5835773
Domestic listed foreign shares 3045773
China Merchants Securities (Hong Kong) Co.
5438154 Domestic listed foreign shares 5438154
Ltd.BOCI SECURITIES LIMITED 4423066 Domestic listed foreign shares 4423066
LISHERYNZHANMING 4149400 Domestic listed foreign shares 4149400
Haitong International Securities Company
3908357 Domestic listed foreign shares 3908357
Limited-Account Client
Explanation of relationship or concerted action
1. Shenzhen Energy Corporation holds 100% equity in HONG KONG NAM
among the top 10 shareholders of tradable
HOI (INTERNATIONAL) LTD
shares without selling restrictions and between
2. The Company is unaware of whether the above-mentioned other public
the top 10 shareholders of tradable shares
shareholders have any relationship or are persons acting in concert.without selling restrictions and the top 10
872024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
shareholders
Description of the top 10 ordinary shareholders'
participation in margin trading and securities None
lending business (if any) (see Note 4)
Participation of shareholders holding more than 5% of the shares the top 10 shareholders and the top 10 shareholders of
unrestricted tradable shares in refinancing business and lending shares
□Applicable □Not applicable
Changes of the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares compared with the previous period
due to refinancing lending/repayment
□Applicable □Not applicable
Whether the Company's top 10 ordinary shareholders and the top 10 ordinary shareholders without selling restrictions conducted
agreed repurchase transactions during the reporting period
□Yes □No
The the Company's top 10 ordinary shareholders and the top 10 ordinary shareholders without selling restrictions did not engage in
any agreed repurchase transactions during the reporting period.
2. Information on the Company's controlling shareholder
Nature of controlling shareholder: none
Type of controlling shareholders: none
Explanation that the Company has no controlling shareholder
Currently the Company has no controlling shareholder as defined in the Company Law and Stock Listing Rules.Changes in controlling shareholders during the reporting period
□Applicable □Not applicable
The Company's controlling shareholder did not change during the reporting period.
3. The Company's actual controller and its persons acting in concert
Nature of actual controller: no actual controller
Type of actual controller: do not exist
Explanation of the fact that the Company has no actual controller
At present the Company does not meet the criteria for identifying actual controller of a listed company as stipulated in the
Company Law the Measures for the Administration of Acquisition of Listed Companies and the Stock Listing Rules.Whether there are shareholders with a shareholding ratio of more than 10% at the Company's ultimate controlling level
□Yes □No
□Shareholders holding more than 5% of the Company's ultimate controlling level □Shareholders holding less than 5% of total
controlling level of the Company
Changes in actual controller during the reporting period
□Applicable □Not applicable
The Company's actual controller did not change during the reporting period.Block diagram of property rights and control relationship between the Company and the actual controller
882024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Shenzhen State-owned Assets Supervision and Shenzhen Nanshan District Finance Bureau
Administration Commission
Shenzhen Shenhuitong Investment Holdings
Co. Ltd
Shenzhen Huitong Financial Holding Fund
Investment Co. Ltd
Shenzhen Kehuitong Investment Holdings
Shenzhen Capital Holdings Co. Ltd Co. Ltd
Shenzhen Guangju Investment Holdings (Group) Co.Ltd
Shenzhen Energy (H.K.) International Limited
Shenzhen Guangju Energy Co. Ltd.Shenzhen Energy Corporation Hong Kong Nam Hoi (International) Shenzhen Guangju Industrial Co. Ltd.Limited
Shenzhen Nanshan Power Co. Ltd.Actual controller controls the Company through trust or other asset management methods
□Applicable □Not applicable
4. Cumulative number of pledged shares by the Company's controlling shareholder or largest
shareholder and persons acting in concert accounts for 80% of the Company's shares held by them.□Applicable □Not applicable
5. Other legal person shareholders holding more than 10% of the shares
□Applicable □Not applicable
Legal
Name of legal person Date of Main business or
representative/compa Registered capital
shareholder establishment management activities
ny principal
HONG KONG NAM HOI
Kong Guoliang May 14 1985 HKD 15.33 million Investment holdings
(INTERNATIONAL) LTD
Establishing industries
and investing in power
Shenzhen Guangju
Deng Zhenwu May 31 1989 RMB 111.11 million (specific projects will
Industrial Co. Ltd.be declared separately)
etc.Development
production purchase
and sale of various
Shenzhen Energy conventional energy
Kong Guoliang July 15 1985 RMB 230971224
Corporation sources (including
electricity heat coal oil
and gas) and new
energy sources
892024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
6. Shareholding restrictions and reductions of controlling shareholders actual controllers reorganizers
and other commitment entities
□Applicable □Not applicable
IV. Specific implementation of share repurchases during the reporting period
Progress of implementation in share repurchase
□Applicable □Not applicable
Implementation progress of reducing repurchased shares in centralized bidding transaction method
□Applicable □Not applicable
902024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Section VIII Preferred shares
□Applicable □Not applicable
There were no preferred shares in the Company during the reporting period.Section IX Bonds
□Applicable □Not applicable
912024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Section X Financial report
Type of audit opinion Unqualified opinion
Signing date of auditor's report April 21 2025
Name of audit agency Lixinzhonglian CPAS (Special General Partnership)
Auditor's Report No. LXZLSZ [2025] No. D-0857
Name of certified public accountant Cao Wei Li Mincong
Auditor's Report
LXZLSZ [2025] No. D-0857
To shareholders of Shenzhen Nanshan Power Co. Ltd.I. Audit opinions
We have audited the accompanying financial statements of Shenzhen Nanshan Power Co. Ltd.(hereinafter referred to as "Shenzhen Nanshan Power") which comprise the consolidated and
parent company's balance sheet as at December 31 2024 the consolidated and parent company's
income statement the consolidated and parent company's statement of cash flows the
consolidated and parent company's statement of changes in shareholders' equity for the year then
ended and the notes to the financial statements.In our opinion the financial statements attached are prepared in all material respects in
accordance with the Accounting Standards for Business Enterprises and present fairly the
consolidated and parent company's financial positions of Shenzhen Nanshan Power as at
December 31 2024 and the consolidated and parent company's operating results and cash flows
for the year then ended.II. Basis for Opinion
We conducted our audit in accordance with Auditing Standards for Certified Public Accountants
in China. Our responsibilities under those standards are further described in the "Auditors'
Responsibilities for the Audit of the Financial Statements" of this auditor's report. According to
the Code of Ethics for Certified Public Accountants of China we are independent of Shenzhen
Nanshan Power and we have fulfilled other responsibilities in the aspect of code of ethics. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.III. Key audit matters
Key audit matters are those matters that in our professional judgment are of most significance in
our audit of the financial statements for the current period. These matters were addressed in the
context of our audit of the financial statements as a whole and in forming our opinion thereon
and we do not provide a separate opinion on these matters.
922024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Key audit matters How these matters were addressed in the
audit
(I) Revenue recognition
For details accounting policies for revenue recognition The audit procedures related to the recognition of opera
and analysis of revenue please consolidated financial st ting revenue include the following procedures:
atements to accounting policies described in Note (XX 1. Evaluating the design and operating effectiveness of
VIII) of "III. Significant accounting policies and accoun key internal control related to revenue recognition;
ting estimates" of the Notes to the Consolidated Financi 2. For power production and sales revenue we obtained
al Statements and Note (XXXIX) of "V. Notes to consol and checked the electricity sales contract and settlemen
idated financial statements". t statements and confirmed the balance of accounts rec
In 2024 Shenzhen Nanshan Power's consolidated operat eivable at the end of the period and the current operatin
ing revenue of RMB 442971955.85 with a decrease of g revenue and confirmed the authenticity of the electric
24.89% from the previous period. ity sales revenue in combination with the post-period ac
As operating revenue is one of the Company's key perfo counts receivable;
rmance indicators and there is an inherent risk that the t 3. For revenue from integrated energy services we obta
ime point of revenue recognition may be manipulated to ined and reviewed the Company's accounting policies u
meet specific goals or expectations we identified recog nderstood and evaluated the management's method of de
nition of operating revenue as a key audit matter. termining the completion progress evaluated the ration
ality of time point of revenue recognition and determin
ed the rationality of the project completion progress by
checking external evidence such as project contracts pr
oject delivery acceptance settlement etc. and confirme
d the authenticity and completeness of revenue from int
egrated energy services in combination with the confir
mation reply and post-period collection;
4. Performing substantive analysis procedures on operat
ing revenue and gross margin to determine the rationalit
932024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
y of changes in operating revenue and gross margin duri
ng the current period;
5. Performing a cut-off testing on operating revenue to
evaluate whether operating revenue has been included i
n the appropriate accounting period.
6. Checking whether information related to operating re
venue has been properly reported in the financial statem
ents
(II) Asset impairment
Please refer to accounting policies described in Notes Our audit procedures regarding asset impairment includ
(XI) (XII) and (XXII) of "III. Significant accounting p e:
olicies and accounting estimates " in the notes to the fin 1. Evaluating and testing the design and implementation
ancial statements. effectiveness of internal control related to asset impair
As of December 31 2024 the total book value of invent ment;
ories investments in other equity instruments fixed ass 2. Obtaining accounting policies for asset impairment c
ets and construction in progress in the consolidated fina heck whether the provision method of asset impairment
ncial statements of the Company is RMB 893219934.1 complies with regulations and obtain and review the de
8 accounting for 44.38% of the total consolidated asset tails of provision for asset impairment made by the man
s which is an important part of the assets of the Compa agement;
ny. 3. Supervising the inventories checking the quantity an
The Shenzhen Nanshan Power's management conducts a d status of the inventories obtaining the latest financial
n impairment test on inventories and evaluates whether statements and other information of the investees unde
there are any indications of impairment in the above-me rstanding the operating conditions of the investees sele
ntioned other assets. If indications of impairment are id cting samples to implement the supervision procedure o
entified the management calculates recoverable amount f long-term assets to understand whether the assets have
of the individual asset or the asset group to which it be problems such as backward technology long-term idle
longs and conducts impairment test on it by comparing ness and low load rate;
942024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
recoverable amount with book value. 3. Using the work of external appraiser experts to condu
Since Shenzhen Nanshan Power's management needs to ct a comprehensive evaluation of the external appraiser'
use significant accounting estimates and judgments whe s qualifications competencies assessment methods and
n determining the estimated recoverable amount of asse various parameters used in the assessment.ts which have significant affected amount we determin
e the asset impairment loss as a key audit matter.(III) Recognition of income from relocation compensation
For the state-owned land use rights of three parcels loca We have mainly performed the following audit procedur
ted in Hengmen Industrial Zone Nanlang Sub-district es for the recognition of income from relocation compe
Cuiheng New District Zhongshan City belonging to Sh nsation:
enzhen Nanshan Power (Zhongshan) Power Co. Ltd. a 1. By comparing the Accounting Standards for Business
subsidiary of Shenzhen Nanshan Power Plot A was acq Enterprises No. 42 - Non-current Assets Held for Sale
uired and reserved with the transfer procedures with Cu Disposal Groups and Discontinued Operations and other
iheng New District Management Committee Zhongshan accounting standards and application guidelines as wel
City. Shenzhen Nanshan Power recognized the land acq l as the CSRC's Guidelines for the Application of Regul
uisition and reservation compensation price of RMB 22 atory Rules - Accounting No. 3 analyze whether the rel
4.7116 million for Plot A in 2024. The final recognized ocation compensation income recognition policy adopte
cost expenditure for Plot A was RMB 61.6930 million d by Shenzhen Nanshan Power is appropriate.and the net income from the land acquisition was RMB 2. Obtaining and checking the land acquisition and stora
163.0186 million. ge contract analyzing and check the contract terms and
Due to the significant amount of relocation compensatio reviewing the agreement on the rights and obligations o
n which has a significant impact on the operating result f the parties to the contract so as to check the accuracy
s of Shennan Power in 2024 we have identified the rec of the time point of loss of control of the disposed asset
ognition of relocation compensation income as a key au s.dit matter. 3. Inquiring and communicating with the Shenzhen Nan
shan Power's management (hereinafter referred to as the
"management") to understand the relocation process an
d the performance of Shenzhen Nanshan Power's obligat
952024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
ions; analyzing and evaluating the reasonableness of the
relevant accounting estimates and judgments of the ma
nagement to confirm the relocation compensation.
4. Obtaining the acceptance and handover data of the re
located land plot checking the land handover confirmat
ion letter and verify the handed-over land plot and the
handover date.
5. Reviewing the relocation expenses incurred during th
e relocation period and the amount of disposal and scra
pping losses of related assets and confirming whether t
he amount of profit or loss carried forward is correct.
6. Checking the relocation plot on site checking the rel
ocation progress and confirming whether the land is in
a clear land state.
7. Reviewing the adequacy and appropriateness of the p
resentation and disclosure of relocation compensation i
ncome in the financial statements.IV. Other information
Shenzhen Nanshan Power's management (hereinafter referred to as the "management") is
responsible for other information. Other information includes information included in the relevant
documents constituting the 2024 Annual Report but excludes the financial statements and our
auditor's report.Our opinion on the financial statements does not cover the other information and we do not and
will not express any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other
information identified above and in doing so consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.If we determine based on the work we have performed that other information is materially
misstated we should report that fact. We have nothing to report in this regard.V. Responsibilities of the Management and Those Charged with Governance for the
Financial Statements
962024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
The management is responsible for preparing the financial statements in accordance with the
requirements of the Accounting Standards for Business Enterprises to achieve a fair presentation
and for designing implementing and maintaining internal control that is necessary to ensure that
the financial statements are free from material misstatements whether due to frauds or errors.In preparing the financial statements the Management is responsible for assessing the Shenzhen
Nanshan Power's going-concern ability disclosing the matters related to going concern and using
the going-concern assumption unless the management either intends to liquidate Shenzhen
Nanshan Power or to cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing Shenzhen Nanshan Power's
financial reporting process.VI. Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement whether due to 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 accordance with the audit standards will always detect a
material misstatement when it exists. Misstatements may arise from fraud or error and are
generally considered material if separate or aggregated misstatements are reasonably expected to
possibly influence the economic decisions made by the users of financial statements on the basis
of these financial statements.In the process of performing audit work in accordance with the auditing standards we use
professional judgment and maintain professional skepticism. Meanwhile we also:
(1) identifying and assessing 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 appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error as fraud may involve collusion forgery intentional omissions misrepresentations or the
override of internal control.
(2) understanding internal control related to the audit in order to design audit procedures that are
appropriate in the circumstances.
(3) evaluating the appropriateness of accounting policies used by and the reasonableness of
accounting estimates and related disclosures made by the management.
(4) drawing conclusions on the appropriateness of the management's use of going concern basis.
Meanwhile according to the audit evidence acquired the management comes to conclusion on
matters which may cause significant misgiving against the going-concern ability of Shenzhen
Nanshan Power or whether the said situation exists material uncertainty or not. If we conclude
that a material uncertainty exists auditing standards require us to draw the attention of users of
the financial statements to the related disclosures in financial statements in our auditor's report; If
such disclosures are inadequate we should modify our opinion. Our conclusions are based on the
information available as of the date of our auditor's report. However future events or conditions
972024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
may cause Shenzhen Nanshan Power to cease to continue as a going concern.
(5) evaluating the overall presentation structure and content of financial statements and evaluate
whether financial statements fairly reflect relevant transactions and events.
(6) obtaining sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within Shenzhen Nanshan Power to express an opinion on the
financial statements. We are responsible for directing supervising and performing group audits
and take full responsibility for our audit opinions.We communicate with those charged with governance regarding among other matters the
planned scope and timing of the audit and significant audit findings including any significant
deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence and
where applicable related safeguards.From the matters communicated with those charged with governance we determine those matters
that are of most significance in the audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor's report unless these
matters are forbidden by laws and regulations to be disclosed or in extremely rare circumstances
when the negative impact arising from the reasonable and expected communication about a
certain matter in a audit report exceeds the public interest benefits arising therefrom we
determine that such matter should not be communicated in the auditors' report.Lixinzhonglian CPAS (Special General Certified Public Accountant of China: Cao Wei
Partnership)
(Engagement Partner)
Certified Public Accountant of China: Li Mincong
Tianjin China April 21 2025
982024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Financial Statements
1. Consolidated balance sheet
Prepared by: Shenzhen Nanshan Power Co. Ltd.Unit: RMB
Item December 31 2024 January 1 2024
Current assets:
Monetary funds 478979221.66 316188782.49
Balances with clearing companies
Loans to banks and other financial institutions
Financial assets held for trading 226000000.00
Derivative financial assets
Notes receivable
Accounts receivable 67817025.91 111975251.10
Receivables financing
Advances to suppliers 19062352.04 26869175.59
Premiums receivable
Reinsurance accounts receivable
Receivable reinsurance contract reserve
Other receivables 131831575.62 19233117.52
Including: interest receivable
Dividends receivable
Financial assets purchased under resale agreements
Inventories 80234374.79 86158251.16
Contract assets 95580.68 88000.00
Assets held for sale 24582784.59
Non-current assets due within one year
Other current assets 285528539.22 232865968.63
Total current assets 1088131454.51 1019378546.49
Non-current assets:
Issuance of loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 90587521.44 90001176.04
Other investments in equity instruments 354798054.57 300615000.00
Other non-current financial assets
Investment properties 1498009.84 1664566.60
Fixed assets 451203790.97 571482734.35
992024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Construction in progress 6983713.85 3448855.10
Productive biological assets
Oil and gas assets
Right-of-use assets 6160020.43 2266946.42
Intangible assets 1349731.81 19285629.03
Development expenses
Goodwill
Long-term deferred expenses 5802861.77 3891832.93
Deferred tax assets 625000.00 1172366.49
Other non-current assets 5596476.40 36157735.24
Total non-current assets 924605181.08 1029986842.20
Total assets 2012736635.59 2049365388.69
Current liabilities:
Short-term borrowings 268615009.19 341237886.72
Loans from the Central Bank
Loans from banks and other financial institutions
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payable 14022157.61 4342166.50
Advances from customers
Contract liabilities 50000.00
Financial assets sold under repurchase agreements
Customer bank deposits and due to banks and other financial
institutions
Receivings from vicariously traded securities
Receivings from vicariously underwritten securities
Employee compensation payable 16052879.47 46238982.57
Taxes payable 14348908.04 3089330.47
Other payables 15685234.29 13973447.42
Including: interest payable
Dividends payable
Handling charges and commissions
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 4466835.32 3926326.45
Other current liabilities 107922984.82
Total current liabilities 441164008.74 412808140.13
Non-current liabilities:
Reserves for insurance contract
1002024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Long-term borrowings 58829426.30
Bonds payable
Including: preferred shares
Perpetual bonds
Lease liabilities 2125910.18
Long-term payables
Long-term employee compensations payable
Estimated liabilities 15000000.00
Deferred income 61522875.97 67869348.07
Deferred tax liabilities
Other non-current liabilities 104045112.54
Total non-current liabilities 63648786.15 245743886.91
Total liabilities 504812794.89 658552027.04
Owners' equity:
Equity 602762596.00 602762596.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital reserve 362770922.10 362770922.10
Less: treasury shares
Other comprehensive income 1683054.57 -2500000.00
Special reserve
Surplus reserve 332908397.60 332908397.60
General risk reserve
Undistributed profits 185255604.81 163346776.24
Total equity attributable to the owners of the parent company 1485380575.08 1459288691.94
Minority interests 22543265.62 -68475330.29
Total owners' equity 1507923840.70 1390813361.65
Total liabilities and owners' equity 2012736635.59 2049365388.69
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance
Department: Lin Xiaojia
2. Parent Company's Balance Sheet
Unit: RMB
Item December 31 2024 January 1 2024
Current assets:
Monetary funds 408963344.55 288209271.60
Financial assets held for trading 226000000.00
Derivative financial assets
1012024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Notes receivable
Accounts receivable 26641173.11 26981407.91
Receivables financing
Advances to suppliers 17256415.27 15384546.45
Other receivables 614157681.93 714553901.02
Including: interest receivable
Dividends receivable
Inventories 76391256.94 79966182.19
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 236196142.37 225282791.79
Total current assets 1379606014.17 1576378100.96
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 568752639.83 495642748.40
Other investments in equity instruments 110615000.00 160615000.00
Other non-current financial assets
Investment properties
Fixed assets 351782033.61 270785343.05
Construction in progress 1654419.67 2267334.95
Productive biological assets
Oil and gas assets
Right-of-use assets 6160020.43 2266946.42
Intangible assets 1234568.04 159361.27
Development expenses
Goodwill
Long-term deferred expenses 5802861.77 699249.25
Deferred tax assets
Other non-current assets 857135.84 857135.84
Total non-current assets 1046858679.19 933293119.18
Total assets 2426464693.36 2509671220.14
Current liabilities:
Short-term borrowings 106590219.19 341237886.72
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 132000000.00
Accounts payable 7836364.14 896652.87
1022024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Advances from customers
Contract liabilities
Employee compensation payable 10343784.13 7012680.38
Taxes payable 4194761.79 1413720.40
Other payables 249849964.57 203625916.75
Including: interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 4466835.32 3926326.45
Other current liabilities
Total current liabilities 515281929.14 558113183.57
Non-current liabilities:
Long-term borrowings 58829426.30
Bonds payable
Including: preferred shares
Perpetual bonds
Lease liabilities 2125910.18
Long-term payables
Long-term employee compensations payable
Estimated liabilities
Deferred income 60705055.43 48280623.30
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 62830965.61 107110049.60
Total liabilities 578112894.75 665223233.17
Owners' equity:
Equity 602762596.00 602762596.00
Other equity instruments
Including: preferred shares
Perpetual bonds
Capital reserve 289963039.70 289963039.70
Less: treasury shares
Other comprehensive income
Special reserve
Surplus reserve 332908397.60 332908397.60
Undistributed profits 622717765.31 618813953.67
Total owners' equity 1848351798.61 1844447986.97
Total liabilities and owners' equity 2426464693.36 2509671220.14
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance
Department: Lin Xiaojia
1032024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
3. Consolidated Income Statement
Unit: RMB
Item Year 2024 Year 2023
I. Total operating revenue 442971955.85 589780190.71
Including: operating revenue 442971955.85 589780190.71
Interest income
Premiums earned
Handling charges and commission income
II. Total operating costs 546888840.95 685824056.18
Including: operating costs 415446732.39 581442543.98
Interest costs
Handling charges and commission expenses
Surrender value
Net amount of compensation payout
Net amount withdrawn for insurance contract reserves
Policy dividends
Reinsurance costs
Taxes and surcharges 4621861.58 4799616.56
Selling and distribution expenses 3155604.58 2831748.65
G&A expenses 95507099.03 58330596.87
R&D expenses 21341778.27 26839912.74
Financial expenses 6815765.10 11579637.38
Including: interest expenses 11829545.09 18665115.07
Interest income 5185764.60 7358119.93
Plus: other income 6867023.46 44505889.51
Investment income (losses expressed with "-") 84488299.90 34997898.47
Including: investment income from associates and joint
6326077.767719627.80
ventures
Gains from derecognition of financial assets
measured at amortized costs
Exchange gains (losses expressed with "-")
Net exposure hedging gains (losses expressed with "-")
Gains from fair value changes (losses expressed with "-")
Losses from credit impairment (losses expressed with "-") -11381410.65 1190348.40
Asset impairment loss (losses expressed with "-") -66389539.68 -162985.78
Gains from disposal of assets (losses expressed with "-") 163529971.97 1886136.92
III. Operating profit (losses expressed with "-") 73197459.90 -13626577.95
Plus: non-operating revenue 553068.40 11687001.25
Less: non-operating expenses 135334.48 66116.23
IV. Total profit (total losses expressed with "-") 73615193.82 -2005692.93
1042024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Less: income tax expenses 9687769.34
V. Net profit (losses expressed with "-") 63927424.48 -2005692.93
(I) Classification by business continuity 63927424.48 -2005692.93
1. Net profit from continuing operations (net losses expressed
63927424.48-2005692.93
with "-")
2. Net profit from discontinued operations (net losses expressed
with "-")
(II) Classification by ownership 63927424.48 -2005692.93
1. Net profit attributable to shareholders of the parent company 21908828.57 4158797.10
2. Minority interest income 42018595.91 -6164490.03
VI. Net after-tax amount of other comprehensive income 4183054.57
Net after-tax amount of other comprehensive income attributable
4183054.57
to owners of parent company
(I) Other comprehensive income that cannot be reclassified into
4183054.57
profit or loss
1. Remeasurement of changes in defined benefit plans
2. Other comprehensive income that cannot be transferred to
profit or loss under the equity method
3. Fair value changes of investments in other equity
4183054.57
instruments
4. Fair value changes of the enterprise's own credit risk
5. Others
(II) Other comprehensive income that will be reclassified to
profit or loss
1. Other comprehensive income that can be transferred to
profit or loss under the equity method
2. Fair value changes of other debt investments
3. Amount of financial assets reclassified and included in
other comprehensive income
4. Provision for credit impairment of other debt investments
5. Cash flow hedging reserve
6. Differences arising from foreign currency financial
statements
7. Others
Net after-tax amount of other comprehensive income attributable
to minority shareholders
VII. Total comprehensive income 68110479.05 -2005692.93
Total comprehensive income attributable to owners of the parent
26091883.144158797.10
company
Total comprehensive income attributable to minority shareholders 42018595.91 -6164490.03
VIII. Earnings per share
(I) Basic earnings per share 0.0363 0.0069
(II) Diluted earnings per share 0.0363 0.0069
For business combination under common control that occurred in the current period the net profit realized by the combined party
before the combination was: RMB and the net profit realized by the combined party in the previous period was: RMB .Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance
Department: Lin Xiaojia
1052024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
4. Parent company's income statement
Unit: RMB
Item Year 2024 Year 2023
I. Operating revenue 379476727.51 391649949.09
Less: operating costs 342873813.14 363689532.32
Taxes and surcharges 2310988.15 2280457.39
Selling and distribution expenses 1051335.73 963163.50
G&A expenses 64842087.48 33986762.85
R&D expenses 16117457.80 13244617.52
Financial expenses -10921290.44 -14764469.81
Including: interest expenses 10825393.90 14182249.86
Interest income 22013162.19 29605337.48
Plus: other income 5471255.16 30169947.71
Investment income (losses expressed with "-") 35323947.41 32562187.79
Including: investment income from associates and joint
6563378.706966316.30
ventures
Income from derecognition of financial assets
measured at amortized costs (losses expressed with "-")
Net exposure hedging gains (losses expressed with "-")
Gains from fair value changes (losses expressed with "-")
Losses from credit impairment (losses expressed with "-") 1105348.40
Asset impairment loss (losses expressed with "-") -718034.64 -
Gains from disposal of assets (losses expressed with "-") 295289.14 1749289.52
II. Operating profit (losses expressed with "-") 3574792.72 57836658.74
Plus: non-operating revenue 453068.40 4287730.08
Less: non-operating expenses 124049.48 58115.11
III. Total profit (total losses expressed with "-") 3903811.64 62066273.71
Less: income tax expenses
IV. Net profit (net losses expressed with "-") 3903811.64 62066273.71
(I) Net profit from continued operations (net losses expressed
3903811.6462066273.71
with "-")
(II) Net profit from discontinued operations (net losses expressed
with "-")
V. Net of tax of other comprehensive income
(I) Other comprehensive income that cannot be reclassified
into profit or loss
1. Remeasurement of changes in defined benefit plans
2. Other comprehensive income that cannot be transferred
to profit or loss under the equity method
3. Fair value changes of investments in other equity
instruments
4. Fair value changes of the enterprise's own credit risk
5. Others
1062024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
(II) Other comprehensive income that will be reclassified to
profit or loss
1. Other comprehensive income that can be transferred to
profit or loss under the equity method
2. Fair value changes of other debt investments
3. Amount of financial assets reclassified and included in
other comprehensive income
4. Provision for credit impairment of other debt investments
5. Cash flow hedging reserve
6. Differences arising from foreign currency financial
statements
7. Others
VI. Total comprehensive income 3903811.64 62066273.71
VII. Earnings per share
(I) Basic earnings per share 0.0065 0.1030
(II) Diluted earnings per share 0.0065 0.1030
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance
Department: Lin Xiaojia
5. Consolidated statement of cash flows
Unit: RMB
Item Year 2024 Year 2023
I. Cash flows from operating activities:
Cash received from sales of goods and rendering of services 531827063.92 693869206.44
Net increase in customer bank deposits and due to banks and other financial
institutions
Net increase in borrowings from the Central Bank
Net increase in borrowings from banks and other financial institutions
Cash received from premiums from the original insurance contract
Net cash received from reinsurance business
Net increase in policyholder deposits and investments
Cash received from interest handling charges and commissions
Net increase in borrowings from banks and other financial institutions
Net increase in funds from repurchase business
Net cash received from vicariously traded securities
Tax refunds received
Other cash received related to operating activities 20645841.50 45771867.13
Sub-total of cash inflows from operating activities 552472905.42 739641073.57
Cash paid for purchase of goods and acceptance of services 384674207.34 661135671.43
Net increase in loans and advances to customers
Net increase in deposits with the Central Bank and interbank funds
1072024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Cash paid for compensation for the original insurance contract
Net increase in loans to banks and other financial institutions
Cash paid for interest handling charges and commissions
Cash paid for policy dividends
Cash paid to and on behalf of employees 111037016.22 110624945.12
Taxes and fees paid 29330485.19 31928707.60
Payments of other cash related to operating activities 65066962.72 36323726.34
Sub-total of cash outflows from operating activities 590108671.47 840013050.49
Net cash flows from operating activities -37635766.05 -100371976.92
II. Cash flows from investing activities:
Recovery of cash received from investment
Cash received from investment income 5517908.37 24318744.60
Net cash recovered from disposal of fixed assets intangible assets and other
77304322.46104554420.00
long-term assets
Net cash received from disposal of subsidiaries and other business units 57632411.85
Other cash received relating to investing activities 452000000.00 620355020.37
Sub-total of cash inflows from investing activities 592454642.68 749228184.97
Cash paid for the acquisition and construction of fixed assets intangible
16298619.8910145320.80
assets and other long-term assets
Cash paid for investments 50000000.00
Net increase in pledge loans
Net cash paid for acquisition of subsidiaries and other business units
Payments of other cash related to investing activities 226000000.00 446393066.79
Sub-total of cash outflows from investing activities 292298619.89 456538387.59
Net cash flows from investing activities 300156022.79 292689797.38
III. Cash flows from financing activities:
Cash received from absorption of investments 49000000.00
Including: cash received by subsidiaries from absorption of minority
shareholders' investments
Cash received from acquisition of borrowings 435026209.56 421093926.90
Other cash received related to financing activities
Sub-total of cash inflows from financing activities 484026209.56 421093926.90
Cash paid for debt repayment 571104234.83 933281007.65
Cash paid for distribution of dividends profits or interest payments 8221444.61 11184721.21
Including: dividends and profits paid by subsidiaries to minority
shareholders
Payments of other cash related to financing activities 6927038.90 6314826.00
Sub-total of cash outflows from financing activities 586252718.34 950780554.86
Net cash flows from financing activities -102226508.78 -529686627.96
IV. Impact of fluctuation in exchange rate on cash and cash equivalents 38454.14 82055.00
V. Net increase in cash and cash equivalents 160332202.10 -337286752.50
Plus: beginning balance of cash and cash equivalents 310734919.56 648021672.06
1082024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
VI. Ending balance of cash and cash equivalents 471067121.66 310734919.56
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance
Department: Lin Xiaojia
6. Parent company's statement of cash flows
Unit: RMB
Item Year 2024 Year 2023
I. Cash flows from operating activities:
Cash received from sales of goods and rendering of services 474669435.32
585940800.94
Tax refunds received - -
Other cash received related to operating activities 207618244.62
101359126.91
Sub-total of cash inflows from operating activities 682287679.94 687299927.85
Cash paid for purchase of goods and acceptance of services 305890582.62
466366789.52
Cash paid to and on behalf of employees 79309098.79
66128967.09
Taxes and fees paid 20426634.39
16336435.27
Payments of other cash related to operating activities 83733542.41
232370081.08
Sub-total of cash outflows from operating activities 489359858.21
781202272.96
Net cash flows from operating activities 192927821.73 -93902345.11
II. Cash flows from investing activities:
Recovery of cash received from investment
Cash received from investment income 5517908.37 22636345.42
Net cash recovered from disposal of fixed assets intangible assets
471400.004770.62
and other long-term assets
Net cash received from disposal of subsidiaries and other business
-
units
Other cash received relating to investing activities 626093917.54 746010220.37
Sub-total of cash inflows from investing activities 632083225.91 768651336.41
Cash paid for the acquisition and construction of fixed assets
1597378.949955363.27
intangible assets and other long-term assets
Cash paid for investments 50000000.00 -
Net cash paid for acquisition of subsidiaries and other business
-
units
Payments of other cash related to investing activities 252170000.00 464000000.00
Sub-total of cash outflows from investing activities 303767378.94 473955363.27
Net cash flows from investing activities 328315846.97
294695973.14
III. Cash flows from financing activities:
Cash received from absorption of investments
Cash received from acquisition of borrowings 150413251.22
421093926.90
1092024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
Other cash received related to financing activities 60775644.30 -
Sub-total of cash inflows from financing activities 211188895.52
421093926.90
Cash paid for debt repayment 571104234.83
933281007.65
Cash paid for distribution of dividends profits or interest
7422777.94
payments 11182322.03
Payments of other cash related to financing activities 27698183.34
19898880.17
Sub-total of cash outflows from financing activities 606225196.11
964362209.85
-
Net cash flows from financing activities -395036300.59
543268282.95
IV. Impact of fluctuation in exchange rate on cash and cash
567.771112.72
equivalents
-
V. Net increase in cash and cash equivalents 126207935.88
342473542.20
Plus: beginning balance of cash and cash equivalents 282755408.67
625228950.87
VI. Ending balance of cash and cash equivalents 408963344.55
282755408.67
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance
Department: Lin Xiaojia
1102024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
7. Consolidated statements of changes in owners' equity
The current period amount
Unit: RMB
Year 2024
Owners' equity attributable to the parent company
Other equity instruments Ge
ner
Item Less: Other Minorit Total
Prefer Perpe al UndistribCapital treasur comprehe Special Surplus y owners'
Equity red tual Other risk uted Others Subtotal interests reserve y nsive reserve reserve equity
share bond s res profits shares income
s s erv
e
-33290-13908
I. Ending balance of the 60276259 362770 163346 145928
2500008397.6847513361.
previous year 6.00 922.10 776.24 8691.94
0.0060330.2965
Plus: changes in accounting
policies
Correction of prior
period errors
Others
-33290-13908
II. Beginning balance of the 60276259 362770 163346 145928
2500008397.6847513361.
current year 6.00 922.10 776.24 8691.94
0.0060330.2965
III. Changes in the current
4183052190826091891018117110
period (decreases expressed
4.57828.5783.14595.91479.05
with "-")
(I) Total comprehensive 21908 219088 42018 63927
income 828.57 28.57 595.91 424.48
(II) Owner's investment and 49000 49000
reductions in capital 000.00 000.00
1112024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
1. Ordinary shares invested 49000 49000
by owners 000.00 000.00
2. Capital invested by other
equity instruments holders
3. Share-based payments
included in owners' equity
4. Others
(III) Profit distribution
1. Withdrawal of surplus
reserve
2. Withdrawal of general
risk reserve
3. Distributions to owners
(or shareholders)
4. Others
(IV) Internal transfer of
owners' equity
1. Capital reserve converted
into capital (or share capital)
2. Surplus reserve converted
into capital (or share capital)
3. Surplus reserve to cover
losses
4. Changes in benefit plans
transferred to retained
earnings
5. Other comprehensive
income transferred to
retained earnings
6. Others
(V) Special reserve
1122024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
1. Withdrawal in the current 57674 576748 57674
period 86.06 6.06 86.06
2. Usage in the current 57674 576748 57674
period 86.06 6.06 86.06
418341830541830
(VI) Others
054.574.5754.57
3329015079
IV. Ending balance in the 60276259 362770 168305 185255 148538 22543
8397.23840.
current period 6.00 922.10 4.57 604.81 0575.08 265.62
6070
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia
Amount in previous period
Unit: RMB
Year 2023
Owners' equity attributable to the parent company
Other equity
Minorit Total
Item instruments
Less: Gene
Other
treas ral Undistrib y owner
Prefe Perp Capital compre Special Surplus OtheEquity ury risk uted Subtotal interest s'
rred etual Othe reserve hensive reserve reserve rs share reser profits s equity
share bond rs income s ve
s s
--1392
I. Ending balance of the 602762 362770 332908 1591879 14551298
25000623108190
previous year 596.00 922.10 397.60 79.14 94.84
00.00840.2654.58
Plus: changes in
accounting policies
Correction of
prior period errors
Others
--1392
II. Beginning balance of 602762 362770 332908 1591879 14551298
25000623108190
the current year 596.00 922.10 397.60 79.14 94.84
00.00840.2654.58
1132024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
-
III. Changes in the current -
41587974158797.12005
period (decreases 61644.100692.9
expressed with "-") 90.03
3
-
-
(I) Total comprehensive 4158797 4158797.1 2005
61644
income .10 0 692.9
90.03
3
(II) Owner's investment
and reductions in capital
1. Ordinary shares
invested by owners
2. Capital invested by
other equity instruments
holders
3. Share-based payments
included in owners' equity
4. Others
(III) Profit distribution
1. Withdrawal of surplus
reserve
2. Withdrawal of general
risk reserve
3. Distributions to owners
(or shareholders)
4. Others
(IV) Internal transfer of
owners' equity
1. Capital reserve
converted into capital (or
share capital)
2. Surplus reserve
converted into capital (or
1142024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
share capital)
3. Surplus reserve to
cover losses
4. Changes in benefit
plans transferred to
retained earnings
5. Other comprehensive
income transferred to
retained earnings
6. Others
(V) Special reserve
1327
1. Withdrawal in the 13270901. 13270901.
0901.
current period 66 66
66
1327
2. Usage in the current 13270901. 13270901.
0901.
period 66 66
66
(VI) Others
--1390
IV. Ending balance in the 602762 362770 332908 1633467 14592886
25000684758133
current period 596.00 922.10 397.60 76.24 91.94
00.00330.2961.65
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia
8. Statement of changes in owners' equity of the parent company
The current period amount
Unit: RMB
Year 2024
Other equity instruments Other
Item Less: Undistrib Total compreh Special Surplus
Equity Preferre Perpetua Capital reserve treasury uted Others owners'
Others ensive reserve reserve
d shares l bonds shares profits equity income
1152024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
I. Ending balance of the 602762596 3329083 618813 1844447
289963039.70
previous year .00 97.60 953.67 986.97
Plus: changes in
accounting policies
Correction of prior
period errors
Others
II. Beginning balance of the 602762596 3329083 618813 1844447
289963039.70
current year .00 97.60 953.67 986.97
III. Changes in the current
3903813903811.
period (decreases expressed
1.6464
with "-")
3903813903811.
(I) Total comprehensive income
1.6464
(II) Owner's investment and
reductions in capital
1. Ordinary shares invested by
owners
2. Capital invested by other
equity instruments holders
3. Share-based payments
included in owners' equity
4. Others
(III) Profit distribution
1. Withdrawal of surplus
reserve
2. Distributions to owners (or
shareholders)
3. Others
(IV) Internal transfer of owners'
equity
1. Capital reserve converted
1162024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
into capital (or share capital)
2. Surplus reserve converted
into capital (or share capital)
3. Surplus reserve to cover
losses
4. Changes in benefit plans
transferred to retained earnings
5. Other comprehensive income
transferred to retained earnings
6. Others
(V) Special reserve
1. Withdrawal in the current 5750504. 5750504.
period 93 93
5750504.5750504.
2. Usage in the current period
9393
(VI) Others
IV. Ending balance in the 602762596 3329083 622717 1848351
289963039.70
current period .00 97.60 765.31 798.61
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia
Amount in previous period
Unit: RMB
Year 2023
Other equity instruments Other
Item Less: Undistri Total compreh Special Surplus
Equity Preferre Perpetua Capital reserve treasury buted Others owners'
Others ensive reserve reserve
d shares l bonds shares profits equity income
I. Ending balance of the 602762596 3329083 556747 17823817
289963039.70
previous year .00 97.60 679.96 13.26
Plus: changes in
1172024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
accounting policies
Correction of prior
period errors
Others
II. Beginning balance of the 602762596 3329083 556747 17823817
289963039.70
current year .00 97.60 679.96 13.26
III. Changes in the current
62066262066273.
period (decreases expressed
73.7171
with "-")
62066262066273.
(I) Total comprehensive income
73.7171
(II) Owner's investment and
reductions in capital
1. Ordinary shares invested by
owners
2. Capital invested by other
equity instruments holders
3. Share-based payments
included in owners' equity
4. Others
(III) Profit distribution
1. Withdrawal of surplus
reserve
2. Distributions to owners (or
shareholders)
3. Others
(IV) Internal transfer of owners'
equity
1. Capital reserve converted
into capital (or share capital)
2. Surplus reserve converted
into capital (or share capital)
1182024 Annual Report of Shenzhen Nanshan Power Co. Ltd.
3. Surplus reserve to cover
losses
4. Changes in benefit plans
transferred to retained earnings
5. Other comprehensive income
transferred to retained earnings
6. Others
(V) Special reserve
1. Withdrawal in the current 7778687. 7778687.2
period 26 6
7778687.7778687.2
2. Usage in the current period
266
(VI) Others
IV. Ending balance in the 602762596 3329083 618813 18444479
289963039.70
current period .00 97.60 953.67 86.97
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia
119Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Shenzhen Nanshan Power Co. Ltd.Notes to the Financial Statements for the Year Ended
December 31 2024
(Unless otherwise specified the monetary unit is RMB)
I. Basic information of the Company
（I） Company profile
Shenzhen Nanshan Power Co. Ltd. (the Company) was reorganized and established from a
foreign investment enterprise to a joint stock limited company on November 25 1993 with the
approval of the General Office of the Shenzhen Municipal People's Government under document
SFBF [1993] No. 897.As approved by the General Office of the Shenzhen Municipal People's Government under
document SZBF [1993] No. 179 the Company issued 40 million RMB ordinary shares and 37
million domestically listed foreign shares to domestic and overseas investors respectively on
January 3 1994. On July 1 1994 and November 28 1994 the RMB ordinary shares (A shares)
and domestically listed foreign shares (B shares) issued by the Company were listed and traded on
Shenzhen Stock Exchange.The Company's primary business is the production and operation of power supply and heating as
well as technical consultation and technical services related to power plant (station). The
Company's registered address is located at No. 2097 Moon Bay Avenue Nanshan District
Shenzhen Guangdong. The Company's headquarters is located at 16F/17F Hantang Building
Overseas Chinese Town Nanshan District Shenzhen Guangdong.The financial statements were approved for disclosure by the Board of Directors of the Company
on April 21 2025.（II） Scope of consolidated financial statements
As of December 31 2024 the subsidiaries within the scope of the Company's consolidated
financial statements are as follows:
Subsidiary (enterprise) name Shareholding ratio % Remark
Shenzhen Nanshan Power (Zhongshan) Power Co. Ltd. ("Shenzhen
80.00
Nanshan Power Zhongshan Company")
Shenzhen Nanshan Power Gas Turbine Engineering Technology
(Shenzhen) Co. Ltd. ("Shenzhen Nanshan Power Engineering 100.00
Company")
Shenzhen Nanshan Power Environmental Protection (Shenzhen) Co.
100.00
Ltd. ("Shenzhen Nanshan Power Environmental Protection Company")
Shenzhen Xiefu Energy Co. Ltd. ("Xiefu Company") 50.00
Shenzhen New Power Industrial Co. Ltd. ("New Power Company") 100.00
Shennan Energy (Singapore) Co. Ltd. ("Singapore Company") 100.00
Hong Kong Hing Tak Shing Limited ("Hing Tak Shing") 100.00
Zhuhai Hengqin Zhuozhi Investment Partnership (Limited Partnership)
99.96
("Zhuhai Hengqin")
Shenzhen Nanshan Power Xiwan Energy (Zhongshan) Co.Ltd. 51.00
For details on the scope of consolidated financial statements in the current period and its changes
please refer to Note VII. Interests in Other Entities.Basis for the preparation of financial statements
Based on the continuing operation and according to the actual transactions and events the
120Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Company prepares the financial statements in accordance with "the Accounting Standards for
Business Enterprises - Basic Standards " promulgated by the Ministry of Finance and various
specific accounting standards application guidelines for accounting standards for business
enterprises interpretations and other relevant provisions for accounting standards for business
enterprises (hereinafter collectively referred to as the "Accounting Standards for Business
Enterprises") as well as the disclosure provisions by " General Provisions on Financial Reporting
No. 15 of the Rules for Information Disclosure and Presentation by Companies that Publicly Issue
Securities" issued by the China Securities Regulatory Commission.The Company has no events or circumstances that cast significant doubt on the going-concern
ability within 12 months from the end of the reporting period.Important accounting policies and accounting estimates
Based on its actual production and operation characteristics and the provisions of relevant
Accounting Standards for Business Enterprises the Company has formulated several specific
accounting policies and accounting estimates which are mainly reflected in the Provision for Bad
Debts of Accounts Receivable (Note III (XI) 6) Inventories (Note III (XII)) Fixed Assets (Note
III (XVII)) Long-term Deferred Expenses (Note III (XXIII)) Revenue Recognition and
Measurement (Note III (XXVIII)) Special Reserves (Note III (XXXIII)) etc.（III） Statement on compliance with Accounting Standards for Business Enterprises
The financial statements comply with the requirements of Accounting Standards for Business
Enterprises promulgated by the Ministry of Finance and truly and completely reflect the
Company's combination and the parent company's financial status as of December 31 2024 as
well as the Company's combination and the parent company's operating results and cash flows in
2024.（IV） Accounting period
A fiscal year begins on January 1 and ends on December 31 of the Gregorian calendar.（V） Operating cycle
The Company's operating cycle is 12 months and the operating cycle is used as the liquidity
classification standard for assets and liabilities.（VI） Recording currency
The Company uses RMB as the recording currency.（VII） Materiality criteria determination method and selection basis
Item Materiality criterion
Significant individual provision for bad debts of accounts
Original book value is greater than RMB 1 million
receivable
The amount of individual provision for bad debts of
Significant provision for bad debts of accounts receivable
accounts receivable recovered or reversed exceeds
recovered or reversed in the current period
RMB 1 million
The write-off amount of individual accounts
Write-off of significant accounts receivable
receivable exceeds RMB 1 million
The individual amount is greater than RMB 5
Important construction in progress
million
The individual amount is greater than RMB 5
Significant estimated liabilities
million（VIII） Accounting treatments for business combinations under common control and not
under common control
For a business combination under common control the assets and liabilities acquired by the
combining party in a business combination are measured at the book value of the assets and
liabilities of the combined party at the combination date (including goodwill resulting from the
121Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
acquisition of the combined party by the ultimate controller) in the consolidated financial
statements of the ultimate controller. The difference between the book value of net assets acquired
in the combination and the book value of the combination consideration paid (or the total nominal
value of shares issued) is adjusted to the equity premium in capital reserve or to retained earnings
if the equity premium in capital reserve is not sufficient for elimination.For a business combination not under common control the assets given liabilities incurred or
assumed by the purchaser as consideration for the business combination are measured at fair value
at the purchase date and the difference between the fair value and its book value is recognized in
current profit or loss. Goodwill is recognized if the combination cost is greater than the difference
in the share of fair value of identifiable net assets of the acquiree acquired in the combination;
Current profit or loss is recognized if the combination cost is lower than the difference in the share
of fair value of identifiable net assets of the acquiree acquired in the combination.Costs directly related to business combinations are recognized in current profit or loss as incurred;
Transaction costs for the issuance of equity securities or debt securities for business combinations
are presented in the amount initially recognized for equity securities or debt securities.（IX） Method of preparation for consolidated financial statements
1. Consolidation scope
The consolidation scope of the consolidated financial statements is determined based on control
and covers the Company and all subsidiaries.
2. Consolidation procedure
The Company prepares consolidated financial statements based on its own financial statements
and those of its subsidiaries' and other relevant information. When the Company prepares
consolidated financial statements it treats the entire enterprise group as an accounting entity and
reflects the overall financial status operating results and cash flows of the enterprise group in
accordance with the recognition measurement and presentation requirements of relevant
Accounting Standards for Business Enterprises and in accordance with unified accounting
policies.Accounting policies and accounting periods adopted by all subsidiaries included in the
consolidation scope of consolidated financial statements are consistent with those of the Company.If accounting policies and accounting periods adopted by subsidiaries are inconsistent with those
of the Company necessary adjustments are made when preparing consolidated financial
statements in accordance with the Company's accounting policies and accounting periods. For a
subsidiary acquired through business combination not under common control its financial
statements are adjusted based on fair value of identifiable net assets on the purchase date. For a
subsidiary acquired through business combination under common control adjustments are made
to its financial statements based on the book value of its assets and liabilities (including goodwill
resulting from acquisition of the subsidiary by ultimate controller) in the ultimate controller's
financial statements.The subsidiary's owners' equity current net profit or loss and current comprehensive income
belonging to minority shareholders are presented under the item of owners' equity in the
consolidated balance sheet under the item of net profit and under the item of total comprehensive
income in the consolidated income statement respectively. The balance resulting from the excess
of the minority shareholders' share of the current loss of a subsidiary over the minority's share of
the subsidiary's owners' equity at the beginning of the period is used to offset the minority
interests.
(1) Increases in subsidiaries or businesses
If there are increases in subsidiaries or businesses as a result of business combination under
common control during the reporting period the beginning balance of the consolidated balance
sheet is adjusted; Include revenue expenses and profits of subsidiaries or business combinations
from the beginning of the current period to the end of the reporting period in the consolidated
income statement; Include cash flows from the beginning of the period to the end of the reporting
period of subsidiaries or business combinations in the consolidated statement of cash flows and
122Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
adjust the relevant line items in the comparative statements to deem the consolidated reporting
entity to have been in existence since the time point at which the ultimate controller began to
control.If control can be exercised over an investee under common control as a result of an additional
investment etc. the parties involved in the combination are deemed to have been adjusted based
on their current status when the ultimate controller began to control. For equity investments held
prior to the acquisition of right of control of the combined party the relevant profit or loss other
comprehensive income and other changes in net assets have been recognized between the later of
the combination date of the original equity and the date on which the merging party and the
merged party were under common control and the combination date whichever is later and are
offset against the beginning retained earnings or current profit or loss of comparative statements
period.If there are increases in subsidiaries or businesses as a result of a business combination not under
common control during the reporting period the beginning balance of the consolidated balance
sheet will not be adjusted; Include revenue expenses and profits of subsidiary or business from
the purchase date to the end of the reporting period in consolidated income statement; Include the
cash flows of the subsidiary or business from the purchase date to the end of the reporting period
in the consolidated statement of cash flows.If the Company can control an investee that is not under common control as a result of additional
investment etc. the Company remeasures the acquiree's equity interest held prior to the purchase
date at the fair value of the equity interest at the purchase date of the equity interest. The
difference between the fair value and its book value is recognized in current investment income. If
the equity interest in the acquiree held prior to the purchase date is related to other comprehensive
income accounted for under the equity method and other changes in owners' equity other than net
profit or loss other comprehensive income and profit distribution the other comprehensive
income and other changes in owners' equity related to them are transferred to investment income
for the period in which they are held at the purchase date except for other comprehensive income
due to the remeasurement of the investee's net liabilities under defined benefit plans or changes in
net assets.
(2) Disposal of subsidiaries or businesses
* General treatment method
If the Company disposes the subsidiary or business during the reporting period the revenue
expenses and profits of the subsidiary or business from the beginning of the period to the date of
disposal are included in the consolidated income statement; Cash flows of the subsidiary or
business from the beginning of the period to the date of disposal are included in the consolidated
statement of cash flows.When the Company loses right of control over the investee due to the disposal of part of the equity
investments or other reasons the Company remeasures the remaining equity investments after the
disposal according to its fair value on the date of loss of control. The difference between the sum
of the consideration received for the disposal of equity interest and the fair value of the remaining
equity interest less the sum of the share of the original subsidiary's net assets continuously
measured from the purchase date or the combination date based on the original shareholding ratio
and goodwill is recognized as investment income in the period in which the loss of control occurs.Other comprehensive income related to equity investments in subsidiaries or other changes in
owners' equity other than net profit or loss other comprehensive income and profit distribution are
transferred to investment income in the current period upon loss of control except for other
comprehensive income due to remeasurement of net liabilities under defined benefit plans or
changes in net assets by the investee.If the Company's shareholding ratio decreases due to other investors' capital increase in the
subsidiary and the Company loss of control accounting treatment is carried out in accordance with
the above principles.* Disposal of subsidiaries in stages
123Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
For a disposal of equity investments in subsidiaries through multiple transactions in stages until
the loss of control it generally indicates that multiple transactions are accounted for as a package
of transactions if the terms conditions and economic effects of each transaction of such disposal
of equity investments in subsidiaries meet one or more of the following circumstances:
i. such transactions are entered into simultaneously or with consideration of their effects on each
other;
ii. such transactions can only achieve a complete business result when taken as an entirety;
iii. the occurrence of a transaction depends on the occurrence of at least one other transaction;
iv. a transaction is uneconomical when considered in isolation but economical when considered in
conjunction with other transactions.If the transactions that dispose of the equity investments in subsidiaries until of loss of control
belongs to a package of transactions the Company account for each transaction as a transaction in
which subsidiary is disposed of and loss of control; However the difference between the disposal
price and the net asset share of the subsidiary corresponding to the disposal of the investment in
each case prior to the loss of control is recognized in the consolidated financial statements as other
comprehensive income and transferred to current profit or loss in the period in which the loss of
control occurs.If various transactions involving the disposal of equity investments in subsidiaries until loss of
control do not belong to a package of transactions prior to the loss of control accounting
treatment is performed in accordance with the relevant policies for partial disposal of equity
investments in subsidiary without loss of control; Upon loss of control accounting treatment is
performed in accordance with general method for disposal subsidiary.
(3) Purchase of minority interests in subsidiaries
The difference between the newly acquired long-term equity investments resulting from the
purchase of minority interests and the Company's net asset share of the subsidiaries calculated on
the basis of the ratio of the newly acquired shares in the subsidiaries' net assets on an ongoing
basis from the purchase date (or the combination date) is adjusted to the equity premium in the
capital reserve in the consolidated balance sheet or to the retained earnings if the equity premium
in the capital reserve is insufficient to offset the difference.
(4) Partially dispose of equity investments in subsidiaries without loss of control
The difference between the disposal price obtained from the partial disposal of long-term equity
investments in subsidiaries without loss of control and the corresponding subsidiaries' net asset
share on a continuing basis from the purchase date (or the combination date) of the long-term
equity investments disposed of is adjusted to the equity premium in the capital reserve in the
consolidated balance sheet or to the retained earnings if the capital reserve is insufficient to offset
the difference.（X） Joint venture arrangements classification and accounting treatments
Joint venture arrangements are divided into joint operations and joint ventures.When the Company is a joint party to joint venture arrangements is entitled to the assets and
assumes the liabilities related to the arrangements it is a joint operation.The Company confirms the following items related to the interest share in joint operations and
performs accounting treatments in accordance with the relevant Accounting Standards for
Business Enterprises:
(1) recognizing assets held separately by the Company and recognizing jointly held assets based
on the Company's share;
(2) recognizing liabilities borne separately by the Company and recognizing liabilities borne
jointly based on the Company's share;
(3) recognizing revenue from the sale of the Company's share of joint operations outputs;
124Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
(4) recognizing revenue from joint operations arising from the sale of output based on the
Company's share;
(5) recognizing expenses incurred independently and recognizing expenses incurred by joint
operations based on the Company's share.See Note "III (XV) Long-term equity investments" for the accounting policies of the Company's
investment in joint ventures.（XI） Determination criteria for cash and cash equivalents
When preparing the statement of cash flows the Company's cash on hand and deposits that can be
used for payment at any time are recognized as cash. Investments that meet the four conditions of
short term (due within three months from the purchase date) strong liquidity easy conversion into
known amounts of cash and small risk of value changes are determined as cash equivalents.（XII） Foreign currency transactions and translation of foreign currency statements
1. Foreign currency transactions
Foreign currency transactions are recorded using the spot exchange rate at the transaction date as
the translation rate to convert the foreign currency amount into RMB.The balance of foreign currency monetary items on the balance sheet date is translated at spot
exchange rate on balance sheet date. The resulting exchange differences are recognized in current
profit or loss except for those arising from foreign-currency special borrowings related to the
acquisition and construction of assets eligible for capitalization which are treated in accordance
with the principle of capitalization of borrowing costs.
2. Translation of foreign currency financial statements
Assets and liability items in the balance sheet are translated using spot exchange rate on the
balance sheet date; Owners' equity items except for "undistributed profits" are translated at spot
exchange rate at the time of occurrence. Revenue and expense items in the income statement are
translated at spot exchange rate on the transaction date.When disposing of an overseas operation the difference arising from the translation of foreign-
currency financial statements related to the overseas operation is transferred from owners' equity
items to the current profit or loss in the period of disposal.（XIII） Financial instruments
Financial instruments include financial assets financial liabilities and equity instruments.
1. Classification of financial instruments
Based on the Company's business model for managing financial assets and the contractual cash
flows characteristics of financial assets financial assets are classified upon initial recognition into:
financial assets measured at amortized costs financial assets measured at fair value with changes
included in other comprehensive income financial assets (debt instruments) and financial assets
measured at fair value with changes included in current profit or loss.Financial assets with a business model whose objective is to collect the contractual cash flows and
whose contract cash flows consist solely of payments of principal and interest based on the
principal amount outstanding are classified as financial assets measured at amortized costs;
Financial assets with a business model whose objective is both to collect the contractual cash
flows and to sell the financial assets and whose contract cash flows consist solely of payments of
principal and interest based on the principal amount outstanding are classified as financial assets at
fair value with changes included in other comprehensive income (debt instruments); Other
financial assets beyond these are classified as financial assets measured at fair value with changes
included in current profit or loss.For investments in non-trading equity instruments the Company determines upon initial
recognition whether to designate them as financial assets (equity instruments) measured at fair
value with changes included in other comprehensive income. At the time of initial recognition in
order to eliminate or significantly reduce accounting mismatches financial assets can be
125Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
designated as financial assets measured at fair value through the current profit or loss. According
to the above conditions the financial assets designated by the Company mainly include:
(specifically describe the designated situation)
Financial liabilities are classified upon initial recognition into: financial liabilities measured at fair
value with changes included in current profit or loss and financial liabilities measured at amortized
costs.Financial liabilities that meet one of the following conditions can be designated upon initial
measurement as financial liabilities measured at fair value with changes included in current profit
or loss:
1) Such designation can eliminate or significantly reduce accounting mismatches.
2) According to the enterprise risk management or investment strategies stated in formal written
documents the Company manages and evaluates the performance of the financial liabilities
portfolio or the portfolio of financial assets and financial liabilities on the basis of the fair value
and reports to the key officers within the enterprise on this basis.
3) The financial liabilities contain embedded derivative instruments that need to be separately
split.In accordance with the above conditions such financial liabilities designated by the Company
mainly include: (specifically describe the circumstances specified)
2. Recognition basis and measurement method for financial instruments
(1) Financial assets measured at amortized costs
Financial assets measured at amortized costs including notes receivable accounts receivable other
receivables long-term receivables debt investments etc. are initially measured at fair value with
related transaction costs included in the initial recognition amount; Accounts receivable that do not
contain significant financing components and accounts receivable that the Company decides not to
consider the financing components of less than one year are initial measurement at the contract
transaction prices.Interest calculated using the effective interest method during the holding period is included in
current profit or loss.When financial assets are recovered or disposed of the difference between the price obtained and
the book value of the financial assets is recorded in current profit or loss.
(2) Financial assets (debt instruments) measured at fair value with changes included in other
comprehensive income
Financial assets (debt instruments) measured at fair value with changes included in other
comprehensive income including receivables financing other debt investments etc. are initially
measured at fair value with related transaction costs included in the initial recognition amount.The subsequent measurement of the financial assets is carried out at fair value with fair value
changes recognized in other comprehensive income except for interest calculated using the
effective interest method impairment losses or gains and foreign exchange profit or loss.On derecognition accumulated gains or losses previously included in other comprehensive
income are transferred out of other comprehensive income and included in current profit or loss.
(3) Financial assets (equity instruments) measured at fair value with changes included in other
comprehensive income
Financial assets (equity instruments) measured at fair value with changes included in other
comprehensive income including other investments in equity instruments etc. are initially
measured at fair value with related transaction costs included in the initial recognition amount.The subsequent measurement of the financial assets is carried out at fair value with fair value
changes included in other comprehensive income. Dividend received are included in current profit
or loss.On derecognition accumulated gains or losses previously included in other comprehensive
126Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
income are transferred out of other comprehensive income and included in retained earnings.
(4) Financial assets measured at fair value with changes included in current profit or loss
Financial assets measured at fair value with changes included in current profit or loss including
financial assets held for trading derivative financial assets other non-current financial assets etc.are initially measured at fair value with related transaction costs included in current profit or loss.The subsequent measurement of the financial assets is carried out at fair value with fair value
changes included in current profit or loss.
(5) Financial liabilities measured at fair value with changes included in current profit or loss
Financial liabilities measured fair value with changes included in current profit or loss including
financial liabilities held for trading derivative financial liabilities etc. are initially measured at
fair value with related transaction costs included in current profit or loss. The subsequent
measurement of the financial liabilities is carried out at fair value with fair value changes
included in current profit or loss.On derecognition the difference between the book value and the consideration paid is included in
current profit or loss.
(6) Financial liabilities measured at amortized costs
Financial liabilities measured at amortized costs including short-term borrowings notes payable
accounts payable other payables long-term borrowings bonds payable and long-term payables
are initially measured at fair value with related transaction costs included in the initial recognition
amount.Interest calculated using the effective interest method during the holding period is included in
current profit or loss.On derecognition the difference between the consideration paid and the book value of the
financial liabilities is included in current profit or loss.
3. Recognition basis and measurement method for transfer of financial assets
The Company assesses the extent to which it retains the risks and rewards of ownership of
financial assets when a transfer of financial assets occurs and treats them as follows respectively:
(1) If substantially all the risks and rewards of ownership of financial assets are transferred the
financial assets are derecognized and rights and obligations arising from or retained in the transfer
are recognized separately as assets or liabilities.
(2) If substantially all the risks and rewards of ownership of financial assets are retained the
financial assets continue to be recognized.
(3) If the Company neither transfers nor retains substantially all risks and rewards of ownership
financial assets (i.e. in cases other than those in (1) and (2) of this Article) it treats the financial
assets according to whether or not it retains control over the financial asset respectively as
follows:
1) If control over the financial assets is not retained the financial assets are derecognized and the
rights and obligations arising from or retained in the transfer are recognized separately as assets or
liabilities.
2) If control of financial assets is retained the financial assets continue to be recognized to the
extent of continued involvement in the transferred financial assets and related liabilities are
recognized accordingly. The extent of continued involvement in the transferred financial assets is
the extent to which the Company bears the risk or rewards of changes in the value of the
transferred financial assets.In determining whether the transfer of financial assets satisfies the above conditions for
derecognition of financial assets the principle of substance over form is applied. The Company
distinguishes between transfer of financial assets in their entirety and partial transfer of financial
assets.
127Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
(1) When the financial assets are transferred in their entirety to satisfy the conditions for
derecognition the difference between the following two amounts is recognized in current profit or
loss:
1) The book value of transferred financial assets on the derecognition date.
2) The sum of the consideration received for the transfer of the financial assets and the amount
corresponding to the derecognized part of the cumulative fair value changes included directly in
other comprehensive income (the financial assets involved in the transfer are financial assets at
fair value with changes included in other comprehensive income).
(2) If financial assets are partially transferred and the transferred part as a whole meets conditions
for derecognition the book value of the entire financial assets before the transfer is divided
between the derecognized part and the continued recognition part (in this case the retained service
assets are deemed to continue to be recognized as part of financial assets) are amortized according
to their respective relative fair values on the transfer date and the difference between the
following two amounts is included in current profit or loss:
1) The book value of derecognized part on the derecognition date.
2) The sum of the consideration received for the derecognized part and the amount corresponding
to the derecognized part of the cumulative amount of fair value changes originally included in
other comprehensive income (the financial assets involved in the transfer are financial assets at
fair value with changes included in other comprehensive income).If the transfer of financial assets does not satisfy the conditions for derecognition the financial
assets continue to be recognized and the consideration received is recognized as financial
liabilities.
4. Conditions for derecognition of financial liabilities
If the current obligations for financial liabilities are fully or partially discharged the financial
liabilities or a part thereof are derecognized; If the Company enters into an agreement with a
creditor to replace the existing financial liabilities by assuming new financial liabilities and the
contractual terms of the new financial liabilities are substantially different from those of the
existing financial liabilities the existing financial liabilities are derecognized and the new
financial liabilities are recognized simultaneously.If all or part of the contractual terms of the existing financial liabilities are substantially modified
the existing financial liabilities or a part thereof are derecognized and the modified financial
liabilities are recognized as new financial liabilities.When financial liabilities are fully or partially derecognized the difference between the book
value of the derecognized financial liabilities and the consideration paid (including non-cash
assets transferred out or new financial liabilities assumed) is recognized in current profit or loss.If the Company repurchases part of financial liabilities it allocates the overall book value of the
financial liabilities based on the relative fair values of the continued recognition part and
derecognized part on the repurchase date. The difference between the book value allocated to the
derecognized part and the consideration paid (including non-cash assets transferred out or new
financial liabilities assumed) is recognized in current profit or loss.
5. Methods for determining fair values of financial assets and financial liabilities
For financial instruments that have an active market their fair values are determined based on the
quoted price in the active market. For financial instruments that do not have active market their
fair values are determined by valuation techniques. In valuing the fair value the Company uses
valuation techniques that are applicable in the current circumstances and are supported by
sufficient available data and other information selects inputs that are consistent with the
characteristics of the assets or liabilities that would be considered by a market participant in a
transaction for the underlying assets or liabilities and prioritizes the use of relevant observable
inputs. Non-observable inputs are used only when relevant observable inputs are not available or
not practicable to obtain.
128Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
6. Test method and accounting treatment method of financial assets impairment
The Company estimates expected credit losses on financial assets measured at amortized costs and
financial assets measured at fair value with changes included in other comprehensive income (debt
instruments) either individually or in combination taking into account all reasonable and
supportable information including forward-looking information. The measurement of expected
credit losses depends on whether a significant increase in credit risk has occurred in the financial
assets since initial recognition.The Company uses a simplified measurement method to measure loss provision based on expected
credit losses over the entire life of all notes receivable contract assets accounts receivable and
lease receivables generated from daily operating activities such as sales of goods and provision of
services that are regulated by the revenue standard; For notes receivable receivables financing and
other receivables classified as portfolio other than these the Company calculates expected credit
losses by reference to historical credit loss experience current conditions and projections of
future economic conditions by using default risk exposures and expected credit loss over the life
of the instruments rate within the next 12 months or over the entire duration.In addition to the above-mentioned simplified measurement methods and various other receivables
and temporary payments other than purchased or originated credit loss the Company evaluates on
balance sheet date whether credit risk of relevant financial instruments has increased significantly
since the initial recognition measures its provision for losses and recognizes expected credit
losses and changes therein respectively.
(1) Recognition criteria and methods for provision for provision for bad debts of accounts
receivable with individually insignificant amount but individual provision for bad debts
The Company conducts separate impairment test on accounts receivable with significant
individual amounts and conducts separate impairment test on financial assets that have not been
impaired and includes them in financial assets portfolio with similar credit risk characteristics.Accounts receivable for which impairment losses are recognized in individual test are no longer
included in the portfolio of accounts receivable with similar credit risk characteristics for
impairment testing.
(2) Accounts receivable with individually insignificant amount but individual provision for bad
debts
For accounts receivable whose individual amounts are not significant but have the following
characteristics such as: accounts receivable that are in dispute with the other party or involved in
litigation or arbitration; The debtor fails to be contacted and there is no third-party pursuer; The
accounts receivable that have obvious signs that the debtor is likely to be unable to fulfill its
repayment obligations shall be subject to a separate impairment test. If any object evidence
proving the existence of impairment impairment loss is recognized and provision for impairment
is made at the difference between present value of future cash flows and their book value.
(3) Determination basis and calculation method of accounts receivable whose expected credit
losses are calculated based on credit risk portfolio
When sufficient evidence of expected credit losses cannot be assessed at a reasonable cost at the
individual instrument level the Company divides notes receivable accounts receivable other
receivables and contract assets into portfolios based on credit risk characteristics by referring to
historical credit loss experience taking into account current conditions as well as judgments of
future economic conditions and calculates expected credit losses on a portfolio basis.Name of portfolios Basis for determining the portfolio
Portfolio I Portfolio of bank acceptance bills
Portfolio II Receivables from power production and sales
Portfolio III Integrated energy service receivables
Consolidated accounts receivable from related parties other
Portfolio IV
receivables and contract asset portfolios
129Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Portfolio V Margin security deposit and petty cash portfolio
Export tax rebate VAT refunded upon collection and other tax
Portfolio VI
portfolios
Other receivables and temporary payments other than the above
Portfolio VII
portfolios（XIV） Inventories
1. Classification of inventories
The Company's main business is the power production and sale of power. The Company's
inventories mainly consist of materials and supplies consumed in the course of production or
rendering of services mainly including fuel raw materials spare parts and maintenance
equipment etc.
2. Valuation method for dispatched inventories
Inventories are initially measured at the cost when acquired but measured at weighted average
method when dispatched.
3. Basis for determining net realizable value of different categories of inventories
For goods inventories for direct sale including finished products stock commodities and materials
for sale their net realizable values shall be recognized at the estimated selling prices minus the
estimated selling and distribution expenses and the relevant taxes and surcharges in the course of
normal production and operation; For material inventories required for process in the course of
normal production and operation their net realizable values are recognized at the estimated selling
prices of finished products minus estimated costs until completion selling and distribution
expenses and relevant taxes and surcharges; For inventories held to execute sales contract or
service contract their net realizable values are calculated on the basis of contract price. If the
quantities of inventories specified in sales contracts are less than the quantities held by the
Company the net realizable value of the excess portion of inventories shall be based on general
selling prices.Provision for inventory depreciation will be made at the end of the period on an individual basis.However for inventories with large quantities and low unit prices provision for inventory
depreciation are made according to the category of inventories; For the inventories related to the
series of products manufactured and sold in the same area and of which the final use or purpose is
identical or similar thereto and if it is difficult to measure them by separating them from other
items the provision for inventory depreciation reserve shall be made on a consolidation basis.When making provision for inventory depreciation if the factors causing any write-down of
inventory value have disappeared leading to the net realizable values of inventories higher than its
book value the amount of write-down shall be reversed from the original provision for inventory
depreciation with the reversal being included in the current profit or loss.
4. Inventory system
The perpetual inventory system is adopted.
5. Amortization method for low-value consumables and packaging materials
(1) Low-value consumables are amortized at lump-sum method.
(2) Packaging materials are amortized at lump-sum method.（XV） Contract assets
1. Recognition methods and standards of contract assets
Contract assets refer to the right of the Company to receive consideration for goods or services
transferred to customers and the right depends on factors other than the passage of time. The
Company's unconditional (i.e. subject only to the passage of time) right to receive consideration
from customers is presented separately as accounts receivable.
2. Determination method and accounting treatment method of expected credit losses of
130Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
contract assets
For the determination method and accounting treatments of the expected credit losses of the
contract assets please refer to the accounting treatment of the relevant accounts receivable in Note
III "(XI) 6. Test method and accounting treatments of financial assets impairment".（XVI） Assets held for sale
1. The Company classifies non-current assets or disposal groups that meet the following
conditions into the category of assets held for sale:
(1) According to the practice of selling such assets or disposal groups in similar transactions they
can be sold immediately under the current conditions;
(2) The sale is highly likely to occur that is the Company has made a resolution on a sale plan
and obtained a firm purchase commitment and the sale is expected to be completed within one
year. Where the relevant regulations require the approval of the relevant authority or regulatory
department of the Company before the sale the approval has been obtained.
2. The Company classifies a component that meets one of the following conditions and is
capable of being separately distinguished and the component has been disposed of or
classified as held for sale:
(1) The component represents an independent major business or a separate major business area;
(2) The component is a part of an associated plan to dispose of an independent major business or a
separate major business area;
(3) The component is a subsidiary acquired for resale.
3. Presentation method
The Company presents separately in the balance sheet the assets in the non-current assets or
disposal group held for sale from other assets and the liabilities in the disposal group held for sale
from other liabilities. The assets in the non-current assets held for sale or the disposal group held
for sale shall not be offset against the liabilities in the disposal group held for sale and shall be
presented as the current assets and current liabilities respectively.The Company presents the profit or loss of continuing operations and the profit or loss of
discontinued operations in the income statement separately. For non-current assets or disposal
groups held for sale that do not meet the definition of discontinued operations their impairment
losses and reversal amounts and disposal profit or loss shall be presented as profit or loss from
continuing operations. Operating profit or loss such as impairment losses and reversal amount of
discontinued operations and disposal profit or loss shall be presented as the profit or loss from
discontinued operations.（XVII） Long-term equity investments
1. Judgment criteria for common control and significant influence
Common control refers to the mutual control over certain arrangement based on relevant
agreements however activities related to such arrangement can be decided only when the
consensus of the participating party sharing the right of control is obtained. Where the Company
exercises common control over the investees together with other parties to the joint ventures and
enjoys the right on the investee's net assets the investee is a joint venture of the Company.Significant influence refers to the power to participate in making decisions on the financial and
operating policies of an enterprise but not the power to control or jointly control the formulation
of such policies with other parties. If the Company can exert significant influence on investees
investees shall be associates of the Company.
2. Determination of initial investment cost
(1) Long-term equity investments formed by business combination
Business combination under common control: if the Company pays cash transfers non-cash assets
or assumes debts and issues equity securities as the combination consideration the share of book
131Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
value of acquiring the owners' equity of the combined party in the ultimate controller's
consolidated financial statements is taken as the initial investment cost of long-term equity
investments on the combination date. In case the Company can exercise control over the investee
under common control for additional investments or other reasons the initial investment cost of
long-term equity investments should be recognized at the share of book value of net asset of the
combined party after the combination in the consolidated financial statements of the ultimate
controller on the combination date. If there is a difference between the initial investment cost of
the long-term equity investments on the combination date and the sum of the book value of the
long-term equity investments before combination and the book value of the consideration newly
paid by shares acquired on the combination date the difference shall be used to adjust the equity
premium; and if the equity premium is insufficient to be offset retained earnings shall be offset.Business combination not under common control: the Company shall use the combination cost
determined on the purchase date as the initial investment cost of long-term equity investments. If
it is possible to exercise control investees that is not under common control due to additional
investment or other reasons the sum of the book value of the original equity investments plus the
cost of the new investment will be used as initial investment cost accounted under the cost
method.
(2) Long-term equity investments obtained through other means
For long-term equity investments acquired from cash payment the initial investment cost is the
actually paid purchasing cost.For the long-term equity investments acquired by issuing equity securities the initial investment
cost is the fair value of the issued equity securities.On the premise that exchange of non-monetary assets is of commercial nature and the fair value of
the asset traded in and out can be measured reliably the initial investment cost of long-term equity
investments traded in with non-monetary asset should be determined according to the fair value of
the asset traded out and relevant taxes and surcharges payable unless any concrete evidence
indicates that the fair value of the asset traded in is more reliable; For exchange of non-monetary
assets that do not meet the above premise the book value of the asset traded out and relevant taxes
and surcharges payable should be recognized as the initial investment cost of the long-term equity
investments traded.For long-term equity investments obtained through debt restructuring its book value is determined
by the fair value of the abandoned creditor's right and the other taxes directly attributable to the
assets and the difference between the fair value of the abandoned creditor's right and the book
value is included into the current profit or loss.
3. Subsequent measurements and recognition of profit or loss
(1) Long-term equity investments accounted for under the cost method
The Company's long-term equity investments in subsidiary is accounted for under the cost
method. Except for the actual price paid for acquisition of investment or the cash dividends or
profits contained in the consideration which have been declared but not yet distributed the
Company recognizes the investment income in the current period at the cash dividends or profits
declared by the investee.
(2) Long-term equity investments accounted for under the equity method
Long-term equity investments in associates and joint ventures are accounted for under the equity
method. If the initial investment cost is in excess of the share of fair value of identifiable net assets
in the investee when the investment is made the difference will not be adjusted to the initial
investment cost of long-term equity investments; If the initial investment cost is in short of the
share of fair value of identifiable net assets in the investee when the investment is made the
difference will be included in the current profit or loss.The Company should recognize the investment income and other comprehensive income
respectively in accordance with its share of net profit or loss and other comprehensive income
realized by the investees that it should enjoy or share and adjust the book value of long-term
132Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
equity investments; The book value of long-term equity investments will be reduced accordingly
in the light of the profits or cash dividends that the investee declares to distribute; For other
changes in the owners' equity of investees other than net profit or loss other comprehensive
income and profit distribution the book value of long-term equity investments is adjusted and
included in owners' equity.When confirming the shares of net profit or loss of the investee which the Company shall enjoy
based on the fair value of the identifiable net assets of the investee at the time of acquisition of the
investment the Company confirms the net profit of the investee after adjustment in accordance
with the Company's accounting policies and the accounting period. During the period when the
investment is held if the investees prepares consolidated financial statements the accounting shall
be made based on the amount attributable to investees in net profit other comprehensive income
and other changes in owners' equity in the consolidated financial statements.The unrealized profit or loss of internal transactions between the Company and associates and
joint ventures shall be offset according to the proportion attributable to the Company and the
investment income shall be recognized on this basis. Unrealized internal transaction loss incurred
between the Company and the investee shall be recognized in full if such loss belongs to the asset
impairment loss. If the Company invests or sells assets to associates and joint ventures and the
assets constitute business the accounting treatment shall be made in accordance with the relevant
policies disclosed in "III. (VI) Accounting treatments of business combination under common
control and not under common control" and "III. (VII) Preparation method of consolidated
financial statements" in this note.When the Company recognizes the losses of investees that it should share it shall proceed in the
following order: Firstly reduce book value of long-term equity investments. Secondly if the book
value of long-term equity investments is not sufficient to offset it the investment losses will
continue to be recognized to the extent of book value of other long-term interests that essentially
constitute a net investment of the investees to offset the book value of long-term receivables etc.Finally after the above processing if the enterprise still bears additional obligations according to
the investment contract or agreement the estimated liabilities will be recognized based on the
estimated obligations and included in the current investment losses.
(3) Disposal of long-term equity investments
When disposing of long-term equity investments the difference between the book value and the
actual price obtained shall be included in the current profit or loss.When disposing of long-term equity investments accounted for under the equity method the
portion originally included in other comprehensive income will be accounted for in a
corresponding ratio on the same basis as the investees' direct disposal of relevant assets or
liabilities. The owners' equity recognized due to the changes in owners' equity other than net profit
or loss other comprehensive income and profit distribution shall be carried forward to the current
profit or loss on a proportional basis except for other comprehensive income arising from the
investee's remeasurement of changes in net liabilities or net assets under the defined benefit plans.If common control or significant influence on investees is lost due to the disposal of part equity
investments or other reasons the remaining equity after disposal shall be calculated in accordance
with recognition and measurement standards of financial instruments. The difference between its
fair value and book value at the date of loss of common control or significant influence is
recognized in the current profit or loss. For other comprehensive income recognized due to the
original equity investments accounted for under the equity method it shall be accounted for on the
same basis as the investees' direct disposal of relevant assets or liabilities when the accounting for
equity method is no longer adopted. The owners' equity recognized due to other changes in
owners' equity of the investee other than net profit or loss other comprehensive income and profit
distribution will all be transferred to the current profit or loss when accounted for under the equity
method is terminated.If the Company loses right of control over investees due to the disposal of part of equity
investments or increase in capital of the subsidiary by other investors resulting in a decrease in the
Company's shareholding ratio when preparing individual financial statements if the remaining
133Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
equity can exercise common control or significant influence over investees it shall be accounted
by under equity method which shall be deemed to be adjusted under the equity method since the
time of acquisition. If the remaining equity cannot common control or exert significant influence
on investees it shall be accounted for in accordance with the relevant provisions of recognition
and measurement standards of financial instruments and the difference between its fair value and
book value on the date of loss of control shall be included in the current profit or loss.Where the equity disposed of are acquired through business combination as a result of additional
investment and other reasons if the remaining equities after disposal are calculated under the cost
method or equity method upon preparation of separate financial statements other comprehensive
income and other owners' equity recognized in equity investments held before the purchase date as
a result of accounting under equity method shall be carried forward pro rata; If the remaining
equity after disposal is accounted for in accordance with recognition and measurement standards
of financial instruments other comprehensive income and other owners' equity will be carried
forward.（XVIII） Investment properties
The investment properties refer to the properties held for earning rentals or/and capital
appreciation including leased land use right land use right held for transfer upon appreciation
and leased building (including self-built buildings or buildings developed for renting or buildings
under construction or development for future renting).The Company measures its existing investment properties under the cost model. For investment
properties measured under the cost model - in terms of buildings for renting the same depreciation
policy as that for fixed assets of the Company is adopted; for land use rights for renting the same
amortization policy as that for intangible assets is adopted.（XIX） Fixed assets
1. Recognition conditions of fixed assets
Fixed assets refer to the tangible assets of the Company held for the purpose of producing
commodities rendering services renting or business management with service life exceeding one
accounting year. Fixed assets are recognized when the following conditions are met at the same
time:
(1) It is very likely that the economic benefits associated with the fixed assets will flow into the
enterprise;
(2) The cost of the fixed assets can be measured reliably.
2. Depreciation method
The depreciation of fixed assets is provided on a category basis by using the straight-line method
(or: unit-of-production method double declining balance method and sum-of-the-years-digits
method etc.) and the depreciation rate is determined according to the category estimated service
life and estimated net residual value rate of the fixed assets. If service life of the various
components of fixed assets are different or they provide economic benefits to the enterprise in
different ways different depreciation rates or depreciation method should be selected and
depreciation should be accrued separately.The depreciation method depreciation life residual rate and annual depreciation rate of fixed
assets are as follows:
Annual
Depreciation Depreciation Residual
Category depreciation rate
method life (years) rate(%)
(%)
Straight-line
Buildings and constructions 20 years 0-10 4.5-5
method
Straight-line
House decoration 10 years 0-5 9.5-10
method
Machinery equipment - gas turbine Workload
-0-10-
generator units method
134Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Annual
Depreciation Depreciation Residual
Category depreciation rate
method life (years) rate(%)
(%)
Machinery equipment (except for gas Straight-line
15-20 years 0-5 4.75-6.67
turbine generator unit) method
Straight-line
Means of transport 5 years 0-5 19-20
method
Straight-line
Electronic equipment 5 years 0-5 19-20
method
Straight-line
Other equipment 5 years 0-5 19-20
method
3. Subsequent expenditures
Subsequent expenditures on fixed assets refer to renovation and reconstruction expenses repair
costs etc. incurred during the use of fixed assets. Subsequent expenditures such as the renewal
and transformation of fixed assets if they meet the conditions for capitalization shall be included
in the cost of fixed assets and book value of the replaced part shall be deducted; The repair costs
of fixed assets that do not meet the conditions for capitalization are included in the current profit
or loss when incurred.（XX） Construction in progress
The Company's construction in progress are classified into infrastructure projects technical
transformation projects integrated energy service information construction etc.The initial book values of the fixed assets are stated at necessary expenditures incurred before
construction in progress reaches the working conditions for its intended use. For construction in
progress that has reached working conditions for its intended use but for which the completion of
settlement has not been handled it shall be transferred into fixed assets at the estimated value
according to the project budget construction price actual cost etc. from the date when it reaches
the working conditions for its intended use. And the fixed assets shall be depreciated in
accordance with the Company’s policy on depreciation of fixed assets. Adjustment shall be made
to the originally and provisionally estimated value based on the actual cost after the completion of
settlement is handled but depreciation provided will not be adjusted.The standards for construction in progress to be transferred to fixed assets when they reach the
condition for its intended use are as follows:
Item Criteria and time point for transfer to fixed assets
(1) The main construction project and supporting projects have been substantially
completed; (2) When the construction project meets the requirements for
predetermined design it must be accepted by the survey design construction
supervision and other entities; (3) Acceptance by external departments such as fire
Buildings and
protection department state-owned land department and planning department etc.; (4)
constructions
If a construction project has reached the intended usable state but has not yet
completed the final settlement it shall be transferred to fixed assets at an estimated
value based on the actual cost of the project from the date on which it reaches the
intended usable state.
(1) Relevant equipment and other supporting facilities have been installed; (2) The
equipment can maintain normal and stable operation for a period of time after
Machinery equipment debugging; (3) The production equipment can stably produce qualified products over a
period of time; (4) The equipment has been inspected and accepted by asset managers
and users.（XXI） Borrowing costs
1. Recognition principles for capitalization of borrowing costs
The borrowing costs include borrowing interest amortization of discounts or premiums auxiliary
135Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
expenses and exchange differences arising from foreign currency borrowings etc.The borrowing costs incurred by the company that can be directly attributed to the purchase
construction or production of assets that meet the capitalization conditions shall be capitalized and
included in the related asset cost; Other borrowing costs are recognized as expenses based on the
amount incurred when incurred and included in the current profit or loss.Assets eligible for capitalization refer to fixed assets investment properties inventories and other
assets which may reach their intended use or sale status only after long-time acquisition and
construction or production activities.Capitalization of borrowing costs begins when the following conditions are met at the same time:
(1) asset expenditures having occurred. Asset expenditures include expenditures in the form of
cash payments transfers of non-cash assets or interest-bearing debts for the acquisition
construction or production of assets that meet capitalization conditions;
(2) borrowing costs having been incurred;
(3) the purchase construction or production activities necessary to bring the asset to its intended
usable or salable state having begun.
2. Period of capitalization of borrowing costs
The capitalization period refers to the period from the time point at which capitalization of
borrowing costs commences to the time point at which capitalization ceases excluding the period
during which capitalization of borrowing costs is suspended.When the acquisition construction or production of assets that meet the capitalization conditions
reaches the intended usable or salable state the capitalization of borrowing costs ceases.When part of the projects in the acquisition construction or production of assets that meet the
capitalization conditions are completed and can be used independently the capitalization of
borrowing costs of this part of the assets ceases.If each part of an asset purchased constructed or produced is completed separately but it cannot
be used or sold until the entirety is completed capitalization of borrowing costs stops when the
entire asset is completed.
3. Capitalization suspension period
If an asset that meets the capitalization conditions is abnormally interrupted during the acquisition
construction or production process and the interruption lasts for more than 3 months the
capitalization of borrowing costs is suspended; If the interruption is a necessary procedure for the
acquired constructed or produced assets that meet the capitalization conditions to reach the
intended usable or salable state the capitalization of borrowing costs continues. Borrowing costs
incurred during the interruption period are recognized as current profit or loss and the
136Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
capitalization of borrowing costs continues until the acquisition construction or production
activities of the assets restart.
4. Calculation method for capitalization of borrowing costs rate and capitalization amount
For special borrowings for the purpose of purchasing constructing or producing assets eligible for
capitalization the capitalization amount of borrowing costs is determined by the actual borrowing
costs incurred in the period of the special borrowing less the amount of interest income earned on
the unused borrowed funds deposited in the bank or investment income earned on the temporary
investment.For general borrowings taken up for the acquisition or production of assets eligible for
capitalization the amount of borrowing costs to be capitalized is determined by multiplying
weighted average of the asset expenditures that exceed special borrowings by the capitalization
rate of the general borrowings general borrowings used. The capitalization rate is calculated and
determined based on the weighted average interest rate of general borrowings.（XXII） Right-of-use assets
Except for short-term leases and leases of low value assets the Company recognizes the right-of-
use assets for the lease on the lease commencement date. The lease commencement date refers to
the date when the lessor provides the leased assets for use by the Company. Right-of-use assets are
initially measured at cost. This cost includes:
1. The initial measurement amount of the lease liabilities;
2. For lease payments paid on or before the lease commencement date if there is a lease incentive
the amount related to the lease incentive enjoyed shall be deducted;
3. Initial direct costs incurred by the Company;
4. The costs that the Company expects to incur to dismantle and remove leased assets restore the
site where leased assets are located or restore leased assets to the state stipulated in the lease
terms but does not include costs incurred for the production of inventories.The Company shall make provision for depreciation of the right-of-use assets with reference to the
relevant depreciation provisions of Accounting Standards for Business Enterprises No. 4 - Fixed
Assets. If the Company can reasonably determine that the ownership of leased assets will be
obtained at the expiration of the lease term the right-of-use assets shall be depreciated within the
remaining useful life of the leased assets. If there is no reasonable assurance that the ownership of
the leased assets can be obtained at the expiration of the lease term the depreciation shall be made
within the shorter of the lease term or the remaining useful life of the leased assets.The Company determines whether the right-of-use assets have been impaired in accordance with
the Accounting Standards for Business Enterprises No. 8 - Asset Impairment and carries out
accounting treatment for the identified impairment losses.
137Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.（XXIII） Intangible assets
Intangible assets including land use right patented technology software etc. are initially
measured at actual cost.
1. Valuation method of intangible assets
(1) The Company shall initially measure the intangible assets at cost when obtaining the same
The cost of outsourced intangible assets includes the purchase price relevant taxes and other
expenses directly attributable to bringing the assets to the intended use. If the purchase price of
intangible assets is deferred beyond normal credit conditions and is essentially financing in nature
the cost of intangible assets is determined based on the present value of the purchase price.The book value of intangible assets acquired in a debt restructuring for use by the debtor against a
debt are determined based on the fair value of the claim waived and other costs directly
attributable to bringing the asset to its intended use such as taxes and the difference between the
fair value of the claim waived and the book value of the intangible assets is recognized in current
profit or loss.Provided that the exchange of non-monetary assets has commercial substance and the fair value of
both the assets exchanged in and the assets exchanged out can be measured reliably the intangible
assets exchanged in by exchange of non-monetary assets are recorded at their fair value based on
the fair value of the assets exchanged out unless there is conclusive evidence that the fair value of
the assets exchanged in is more reliable; For exchange of non-monetary assets that do not meet the
above prerequisites the book value of the exchanged assets and related taxes payable are
recognized as the cost of the intangible assets exchanged and profit or loss is derecognized.
(2) Subsequent measurement
Analyze and determine service life of intangible assets when acquiring them.For intangible assets with limited service life they are amortized on straight-line method within
the period that they bring economic benefits to the enterprise; If it is not foreseeable that
intangible assets will bring economic benefits to the enterprise they are regarded as intangible
assets with indefinite service life and are not amortized.
2. Estimated service life of intangible assets with limited service life
Amortization Basis for use
Category Amortization period (year)
method
Within the validity period
Land use right Straight-line method 30-50
of the land title certificate
Patented technology Straight-line method 10 Patent certificate
Software Straight-line method 5 Software availability period
3. Basis for judgment of intangible assets with indefinite service life and procedures for
reviewing their service life
138Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
When reviewing the service life of intangible assets with indefinite service life the service life is
estimated and amortized in accordance with the amortization policy for intangible assets with
limited service life if there is evidence that the period over which the intangible asset will provide
economic benefits to the enterprise is foreseeable.
4. Specific criteria for dividing research and development stages
The expenditures of the Company's internal research and development projects are divided into
expenditures in the research stage and expenditures in the development stage.Research stage: the stage of creative and planned investigation and research activities to obtain
and understand new scientific or technical knowledge.Development stage: the stage in which research results or other knowledge are applied to a certain
plan or design to produce new or substantially improved materials devices products etc. before
commercial production or use.Development stage expenditures meet specific criteria for capitalization
Expenditures during the development stage of internal research and development projects are
recognized as intangible assets when the following conditions are met:
(1) It is technically feasible to complete the intangible assets so that it can be used or sold;
(2) Have the intention to complete the intangible assets and use or sell it;
(3) The usefulness of methods for intangible assets to generate economic benefits shall be proved
including being able to prove that there is a potential market for the products manufactured by
applying the intangible assets or there is a potential market for the intangible assets themselves or
the intangible assets will be used internally;
(4) Have sufficient technical financial and other resource support to complete the development of
the intangible assets and have the ability to use or sell the intangible assets;
(5) Expenditures attributable to the development stage of the intangible assets can be measured
reliably.（XXIV） Asset impairment
For long-term assets such as long-term equity investments investment properties measured under
the cost model fixed assets construction in progress right-of-use assets and intangible assets
with limited useful lives if there are signs of impairment on the balance sheet date an impairment
test shall be conducted. If the results of impairment test indicate that the recoverable amount of
assets is less than its book value a provision for impairment is made based on the difference and
the assets are recognized as impairment losses. The recoverable amount is the net of the fair value
of the assets less costs of disposal and the current value of the expected future cash flows from the
assets (whichever is higher). Provision for asset impairment is calculated and recognized on the
basis of individual assets. If it is difficult to estimate the recoverable amount of an individual asset
the recoverable amount of an asset group is determined based on the asset group to which the asset
belongs. The asset group is the smallest combination of assets that can independently generate
cash inflows.Goodwill intangible assets with indefinite service life and intangible assets that have not yet
reached a usable state are subject to impairment test at least at the end of each year.The Company performs the impairment test for goodwill. For the book value of goodwill arising
from a business combination the Company amortizes it to the relevant asset group on a reasonable
method from the purchase date; If it is difficult to be amortized to the relevant asset group it is
amortized to the relevant portfolio of asset groups. When amortizing the book value of goodwill
the Company amortizes it based on the relative benefits that the relevant asset groups or portfolio
of asset groups can obtain from the synergies of business combination and performs goodwill
impairment test on this basis.In the impairment test for the relevant asset group or combination of asset groups containing
goodwill if there are indications of impairment for the asset group or combination of asset groups
139Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
related to goodwill the asset group or combination of asset groups that does not contain goodwill
is first tested for impairment the recoverable amount is calculated and compared with the relevant
book value and corresponding impairment losses are recognized. An impairment test is then
performed on the asset group or combination of asset groups containing goodwill by comparing
the book value of the relevant asset group or combination of asset groups (including the part of the
book value of the goodwill apportioned to it) with its recoverable amount. If the recoverable
amount of the relevant asset group or combination of asset groups is less than its book value
impairment losses on goodwill are recognized. Once the above-mentioned asset impairment losses
are recognized they will not be reversed in subsequent accounting periods.（XXV） Long-term deferred expenses
1. Amortization method
The Company's long-term deferred expenses refer to various expenses that have been incurred but
the benefit period is more than one year (excluding one year). Long-term deferred expenses are
amortized in installments according to the benefit period of the expense item. If a long-term
deferred expense item cannot benefit future accounting periods all the amortized value of the item
that has not been amortized will be transferred to the current profit or loss.The renovation of lease premises is recognized as long-term deferred expenses and amortized over
the shorter of the following two periods:
(1) the estimated service life of the renovation (the estimated time until the next renovation);
(2) the estimated remaining service life of the main structure of the property
The Company's subsequent expenditure that do not meet the conditions for recognition of fixed
assets such as major repair costs are recognized as long-term deferred expenses in the year they
occur and are subsequently amortized in installments during the benefit period.
2. Amortization period
Item Amortization period
Renovation of rented fixed The estimated service life of the renovation and the estimated remaining
assets service life of the main structure of the property (whichever is shorter).Expenditures for capital
Overhaul cycle for gas generator unit
repairs of fixed assets（XXVI） Contract liabilities
Contract liabilities refer to the Company's obligation to transfer goods or services to customers for
consideration received or receivable from customers. Contract assets and contract liabilities under
the same contract are presented in the net term.（XXVII） Employee compensation
1. Accounting treatments of short-term compensation
During the accounting period when employees provide services for the Company the Company
recognizes the actual short-term compensation as a liability and includes it in the current profit or
loss or related asset costs.The Company contributes social insurance premiums and housing fund for its employees as well
as labor union fund and employee education expenses withdrawn as required and calculates and
determines the corresponding amount of employee compensation in accordance with the
prescribed accrual basis and accrual ratio during the accounting period in which the employees
render services to the Company.For non-monetary employee benefits if they can be measured reliably they are measured at fair
value.
2. Accounting treatments for post-employment benefits
Defined contribution plans
The Company pays basic endowment insurance and unemployment insurance for its employees in
140Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
accordance with relevant regulations of the local government. During the accounting period when
employees provide services to the Company the amount payable is calculated based on the
payment base and ratio stipulated by the local government and is recognized as a liability and
included in current profit or loss or related asset costs.In addition to basic endowment insurance the Company has also established an enterprise annuity
payment system (supplementary endowment insurance)/enterprise annuity plan in accordance with
the relevant policies of the national enterprise annuity system. The Company pays contributions to
local social insurance institutions/annuity plans based on a certain ratio of total employee wages
and includes the corresponding expenditures in current profit or loss or related asset costs.
3. Accounting treatments for dismissal benefits
When the Company cannot unilaterally withdraw dismissal benefits provided by the termination
of labor relationship plan or redundancy proposal or when it recognizes the costs or expenses
related to the restructuring involving the payment of dismissal benefits (whichever is earlier)
employee compensation liabilities arising from dismissal benefits are recognized and included in
current profit or loss.（XXVIII） Lease liabilities
Except for short-term leases and leases of low value assets the Company makes initial
measurement of the lease liabilities on the lease commencement date according to the present
value of the unpaid lease payments on that date. In calculating the present value of the lease
payments the Company uses the interest rate implicit in the lease as the discount rate and if the
interest rate implicit in the lease cannot be determined the incremental borrowing rate is used as
the discount rate.Lease payments are payments made by the Company to the lessor in connection with the right to
use the leased assets during the lease term including:
1. Fixed payment amount (including substantial fixed payment amount) if there is any lease
incentive the relevant amount of the lease incentive shall be deducted;
2. Variable lease payments depending on the index or ratio;
3. The Company reasonably determines the exercise price of the purchase option to be exercised;
4. The lease term reflects the amount to be paid by the Company for exercising the option to
terminate the lease;
5. The amount expected to be paid according to the residual value of the guarantee provided by the
Company.The variable lease payments depending on the index or ratio is determined at the initial
measurement according to the index or ratio on the commencement date of the lease term. The
variable lease payments not included in the measurement of lease liabilities shall be included in
the current profit or loss or the related asset cost when they actually occur.After the lease commencement date the Company calculates the interest expenses of the lease
liabilities for each period of the lease term at a fixed periodic interest rate and includes it in the
current profit or loss or related asset cost.After the lease commencement date if the following circumstances occur the Company will re-
measure lease liabilities and adjust the corresponding right-of-use assets. If the book value of
right-of-use assets has been reduced to zero but lease liabilities still need to be further reduced
the Company will include the difference in the current profit or loss.
1. If the lease term changes or the evaluation result of the purchase option changes the Company
shall remeasure the lease liabilities according to the present value calculated by the changed lease
payments and the revised discount rate;
2. If the estimated amount payable according to the guaranteed residual value or the index or ratio
used to determine the lease payments changes the Company remeasures the lease liabilities
according to the changed lease payments and the present value calculated by the original discount
141Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
rate. If the change in lease payments is due to the change in floating interest rate the revised
discount rate shall be used to calculate the present value.Lease liabilities are presented as current liabilities or non-current liabilities in the balance sheet
according to their liquidity. The ending book value of non-current lease liabilities maturing within
one year from the balance sheet date shall be reflected in the item of "non-current liabilities
maturing within one year".（XXIX） Estimated liabilities
1. Recognition criteria for estimated liabilities
The Company recognizes the obligations related to contingencies such as litigation debt
guarantees onerous contracts restructuring matters etc. as estimated liabilities when the
following conditions are met at the same time:
(1) the obligation being the current obligation of the Company;
(2) the performance of the obligation being likely to cause economic benefits to flow out the
Company;
(3) the amount of the obligation being able to be measured reliably.
2. Measurement methods for various types of estimated liabilities
The Company's estimated liabilities are initially measured at best estimate of the expenditures
required to perform the related present obligations.When determining best estimate the Company comprehensively considers factors such as risks
uncertainty and time value of money related to contingencies. Where the effect on the time value
of money is material the best estimate is determined by discounting the relevant future cash
outflows.Best estimate is treated separately as follows:
If there being a continuous range (or interval) of required expenditures and various outcomes
within the range are equally likely to occur best estimate is determined based on the middle value
of the range that is the average of the upper and lower limits.If there being no continuous range (or interval) of required expenditures or if there being a
continuous range but the probabilities of occurrence of the various results within the range are not
the same the best estimate is determined on the basis of the most probable amount to be incurred
if the contingency relates to a single item; If the contingency involves multiple projects best
estimate is calculated and determined based on various possible outcomes and related
probabilities.If all or part of the Company's expenses required to settle estimated liabilities are expected to be
compensated by a third party the compensation amount is recognized separately as an asset when
it is basically certain that it can be received. The recognized compensation amount shall not
exceed the book value of estimated liabilities.（XXX） Revenue
Disclosure of accounting policies adopted for revenue recognition and measurement according to
business type. The Company's revenue mainly comes from the following business types:
(1) Revenue from power production and sales; (2) Revenue from integrated energy services; (3)
Other revenue.
1. General principles
If the Company fulfills its performance obligations under a contract that is when the customer
obtains right of control of the relevant goods or services revenue is recognized. Performance
obligations are contractual commitments in which the Company transfers clearly distinguishable
goods or services to the customer. Obtaining right of control of the relevant goods or services
refers to the ability to control the use of the goods or the provision of the services and to derive
virtually all of the economic benefits therefrom.
142Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
If one of the following conditions is met it is performance obligations to be fulfilled within a
certain period of time and the Company recognizes revenue over a period of time in accordance
with the performance progress: (1) the customer obtaining and consuming the economic benefits
arising from the Company's performance at the same time as the Company's performance; (2) the
customer being able to control the goods under construction during the Company's performance;
(3) the goods produced by the Company during the performance of the contract having
irreplaceable uses and the Company having the right to collect payment for the cumulative
performance part completed so far during the entire contract period. Otherwise the Company
recognizes revenue at the time point at which the customer obtains the right of control of the
related goods or services.
2. Sales with a quality guarantee clause
For sales with a quality guarantee clause if the quality guarantee provides a separate service to the
customer in addition to the assurance that the goods or services sold meet standards specified
herein the quality guarantee constitutes an individual performance obligation. Otherwise the
Company accounts for the quality assurance liability in accordance with the provisions of the
Accounting Standards for Business Enterprises No. 13 - Contingencies.
3. Identification of the person with main liabilities and the agent
The Company identifies itself as the person with main liabilities or the agent when engaging in
transactions based on whether it has the right of control of the goods or services before
transferring them to the customer. If the Company has the right of control of the goods or services
before transferring them to the customer the Company identifies itself as the person with main
liabilities and recognizes revenue based on the total consideration received or receivable;
Otherwise the Company identifies itself as the agent and recognizes revenue based on the amount
of commissions or handling charges that may be received. This amount is determined according to
the net amount after deducting the price payable to other related parties from the total
consideration received or receivable or according to the specified commissions amount ratio or
other factors.
4. Principles
If the Company fulfills its performance obligations under a contract that is when the customer
obtains right of control of the relevant goods or services revenue is recognized. Obtaining right of
control of the relevant goods or services refers to the ability to control the use of the goods or the
provision of the services and to derive virtually all of the economic benefits therefrom.
(1) Revenue from power production and sales
When the power is transmitted to the power grid company specified in the power sales contract
which means the power grid company has obtained the right of control of the power the Company
shall recognize the reported sales revenue.
(2) Revenue from integrated energy services
The revenue of services provided between the Company and customers mainly includes
engineering labor and services such as operation and maintenance management commissioning
and overhaul as well as energy service revenue for industrial and commercial energy storage and
power sales. If multiple performance obligations are involved they should be reasonably split and
equipment sales should be handled with reference to the sale of goods business. The provision of
labor and services is generally dealt with according to the output method based on the
performance obligation fulfilled within a certain time period. Requirements are as follows:
1) Sales of supporting equipment
For sales of equipment revenue shall be recognized when the customer obtains the right of control
the equipment. In general the recognition time point shall be the time when the customer signs
after receiving the completed or delivered products. Based on the terms of the Contract the
required attachments for revenue recognition include but are not limited to the sales contract
commodity shipping order customer receipt sheet equipment acceptance sheet or customs
declaration form etc.
143Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
2) Labor and services provided
* The recognition and settlement of revenue from such business shall comply with the provisions
of the business contract signed by both parties. At the end of each settlement period the necessary
documents stipulated in the Contract such as the attendance sheet service application form etc.confirmed by both parties shall be provided as the proof of the cumulative revenue recognition of
the settlement period and materials for collecting service price.* On each balance sheet date within the settlement period revenue shall be tentatively estimated
based on the performance progress. When using the output method to determine the performance
progress the progress is usually determined in combination with the actual measured completion
progress assessment of achieved results achieved milestones progress of the schedule completed
or delivered products and other output indicators.
3) Energy service income from industrial and commercial energy storage and power sales
For the industrial and commercial energy storage service business after the expiration of each
settlement cycle check and confirm the charging and discharging records of the energy storage
project with the customer and sign the confirmation form of electricity charge settlement of
energy storage power station tentatively estimate the confirmation revenue of service fees and
make formal settlement according to the actual electricity bill issued by the power supply bureau
at the beginning of each month adjust the tentatively estimated revenue and confirm the energy
service revenue.For power sales service the energy service revenue of the current month shall be confirmed
according to the power sales revenue statement of Guangdong Power Exchange Co. Ltd.（XXXI） Contract costs
1. Cost of contract acquisition
The incremental costs incurred by the Company to obtain the Contract (that is costs which would
not have been incurred without obtaining the Contract) that may be recovered shall be recognized
as an asset and amortized on the same basis as the revenue recognition of goods or services related
to the asset. In addition the asset shall be included in the current profit or loss. If the amortization
period of the asset does not exceed one year the asset shall be included in the current profit or loss
when incurred. Other expenses incurred by the Company to obtain the contract shall be included
in the current profit or loss when incurred unless otherwise the expenses are borne by the
customer.
2. Contract performance cost
The costs incurred by the Company to perform the Contract are recognized as an asset if they do
not fall within the scope of other provisions specified in the Accounting Standards for Business
Enterprises other than the revenue standards and meet all the following conditions: (1) when the
cost is directly related to an existing or expected contract; (2) when the cost increases the
Company resources for fulfilling performance obligations in the future; (3) when the cost is
expected to be recovered. The above-mentioned asset shall be amortized on the same basis as the
revenue recognition of goods or services related to the asset and included in the current profit or
loss.
3. Impairment of contract costs
When recognizing impairment losses of assets related to contract costs the Company shall first
recognize impairment losses of other assets related to the Contract that are recognized in
accordance with other relevant accounting standards for business enterprises; Then if book value
is higher than difference between the remaining consideration expected to be obtained by the
Company for the transfer of the goods related to the asset and the estimated cost to be incurred for
the transfer of the related goods provision for impairment shall be made for the excess and it
shall be recognized as the asset impairment loss.If the factors of impairment in the previous period subsequently changed causing the
aforementioned difference to be higher than the book value of the asset provision for asset
impairment that has been made previously shall be reversed and the higher part shall be included
144Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
in the current profit or loss but the book value of the asset after the reversal shall not exceed the
book value of the asset on the date of reversal assuming no provision for impairment is made.（XXXII） Government subsidies
1. Type
Government subsidies refer to the monetary and non-monetary assets obtained by the Company
from the government free of charge. Government subsidies are divided into asset-related
government subsidies and income-related government subsidies.Asset-related government subsidies refer to government subsidies obtained by the Company and
used to purchase construct or otherwise form long-term assets. Income-related government
subsidies refer to government subsidies other than asset-related government subsidies.
2. Recognition time point
If there is evidence that the Company can meet the relevant conditions stipulated in the financial
support policy and is expected to receive financial support funds government subsidies shall be
recognized based on the amount receivable. Otherwise government subsidies shall be recognized
when they are actually received.If government subsidies are monetary assets they shall be measured at the amount received or
receivable. If government subsidies are non-monetary assets they shall be measured at the fair
value; If the fair value cannot be obtained reliably government subsidies shall be measured at the
nominal amount (RMB 1). Government subsidies measured at the nominal amount shall be
directly included in the current profit or loss.
3. Accounting treatment
Asset-related government subsidies shall be used to offset the book value of the relevant assets or
recognized as the deferred income. Government subsidies which are recognized as the deferred
income shall be included in the current profit or loss in installments according to a reasonable and
systematic method within service life of the relevant assets (if the government subsidies are
related to the daily activities of the Company the subsidies shall be included in other income; if
the government subsidies are not related to the daily activities of the Company the subsidies shall
be included in non-operating revenue).Income-related government subsidies that are used to compensate the Company for relevant costs
or losses in subsequent periods shall be recognized as the deferred income and included in the
current profit or loss (if the government subsidies are related to the daily activities of the
Company the subsidies shall be included in other income; if the government subsidies are not
related to the daily activities of the Company the subsidies shall be included in non-operating
revenue) or used to offset relevant costs or losses; If the subsidies are used to compensate for the
relevant costs or losses incurred by the Company the subsidies shall be directly included in the
current profit or loss (if the government subsidies are related to the daily activities of the
Company the subsidies shall be included in other income; if the government subsidies are not
related to the daily activities of the Company the subsidies shall be included in non-operating
revenue) or used to offset relevant costs or losses.The policy-based preferential loan interest subsidies obtained by the Company will be accounted
for differently in the following two situations:
(1) if the central finance allocates interest subsidies to the lending bank and the lending bank
provides loans to the Company at a policy-based preferential interest rate the Company will use
the actual loan amount received as the entry value of the loan and calculate related borrowing
costs based on the loan principal and the policy-based preferential interest rate.
(2) if the central finance directly allocates interest subsidies to the Company the Company will
use the corresponding interest subsidies to offset related borrowing costs.（XXXIII） Deferred tax assets and deferred tax liabilities
For deductible temporary differences deferred tax assets shall be recognized with the taxable
income that is likely to be obtained in the subsequent period to offset deductible temporary
145Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
differences as the limit. For deductible losses and tax credits which can be carried forward to
subsequent years the corresponding deferred tax assets shall be recognized with the future taxable
income that is likely to be obtained to offset deductible losses and tax credits as the limit.For taxable temporary differences except in special circumstances the deferred tax liabilities shall
be recognized.Special circumstances in which deferred tax assets or deferred tax liabilities are not recognized
include: initial recognition of goodwill; Other transactions or matters except for business
combination that affect neither accounting profits nor taxable income (or deductible losses) when
incurred.When the Company is entitled to the legal right to settle on a net basis and intends to settle on a
net basis or obtain assets and pay off liabilities at the same time the current income tax assets and
current income tax liabilities shall be reported at the net amount after offsetting.When the Company is entitled to settle current income tax assets and current income tax liabilities
on a net basis and deferred tax assets and deferred tax liabilities are related to income tax levied
by the same taxation department on the same taxpayer or different taxpayers but in each
significant period when deferred tax assets and liabilities are reversed if the taxpayer involved
intends to settle current income tax assets and liabilities on a net basis or obtain assets and pay off
liabilities at the same time deferred tax assets and deferred tax liabilities shall be reported at the
net amount after offsetting.（XXXIV） Lease
Lease refers to a contract whereby the lessor transfers the right to use an asset to the lessee in
exchange for consideration for a certain period of time.
1. The Company acts as a lessee
The Company shall determine the right-of-use assets on the starting date of the lease term and
recognize lease liabilities based on the present value of the unpaid lease payments. Lease
payments include fixed payments and amounts payable when the purchase option or option to
terminate lease is likely to be exercised. Variable rent determined based on a certain ratio of sales
amount shall not be included in lease payments and shall be included in the current profit or loss
when actually incurred.The Company's right-of-use assets include leased buildings and constructions machinery
equipment means of transport computers and electronic equipment etc.For short-term leases with lease term of no more than 12 months and leases of low value assets
with a single asset at a low value when it is new the Company will not to recognize right-of-use
assets and lease liabilities and the relevant rental expenses will be calculated based on the
straight-line method in each period during lease term and included in the current profit or loss or
related asset costs.
2. The Company acts as a lessor
Financing lease refers to the lease that basically transfers all the risks and rewards related to the
ownership of leased assets. Other leases are operating leases.
(1) Operating leases
When the Company rents out its own buildings machinery equipment and means of transport the
rental revenue from operating leases is recognized in accordance with the straight-line method
during lease term. Variable rents which are determined by the Company at a certain percentage of
sales are included in rental revenue when actually incurred.
(2) Financing lease
On the commencement date of the lease term the Company recognizes the finance lease
receivables for the financing lease and terminates the derecognition of related assets. The
Company lists finance lease receivables as long-term receivables while the finance lease
receivables collected within one year (including) from the balance sheet date are listed as non-
146Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
current assets due within one year.（XXXV） Special reserve
The work safety expenses extracted from the Company's power production and sales business in
accordance with national regulations are included in the cost of related products or current profit
or loss as well as in the "special reserve" account. The currently accrual standard is based on
operating revenue of the previous year using an excess regressive method to determine the accrual
amount for the current year. Such amount shall be withdrawn evenly every month and be included
in the cost of related products or current profit or loss as well as in the "special reserve" account.When the Company uses special reserve the amount shall be charged directly to the special
reserve if it belongs to cost of spending; If fixed assets are formed they will be recognized as
fixed assets when such assets reach the intended usable state; At the same time special reserve is
offset according to the cost of fixed assets formed and accumulated depreciation of the same
amount shall be recognized. Such fixed assets will no longer be depreciated in subsequent periods.（XXXVI） Changes in significant accounting policies and accounting estimates
1. Significant changes in accounting policies
Content and reasons for changes in accounting policies Names of report Affected
items significantly amount
affected
In October 2023 the Ministry of Finance issued the Interpretation No. 17 of
the Accounting Standards for Business Enterprises (CK [2023] No. 21)
which stipulates the relevant contents of "the division of current liabilities
and non-current liabilities" "the disclosure of financing arrangements of the No impact 0.00
supplier" and "the accounting treatment of after-sales leaseback
transactions". The interpretation shall come into force as of January 1 2024
and be implemented by the Company as of January 1 2024.In March 2024 and December 2024 the Ministry of Finance compiled and
issued the Compilation of Application Guidelines for Accounting Standards
for Business Enterprises 2024 and issued the Accounting Standards for
Business Enterprises Interpretation No. 18 (CK [2024] No. 24) stipulating
that the estimated liabilities arising from the quality assurance that does not
belong to the individual performance obligation shall be included in the No impact 0.00
"primary business costs" and "other business costs" according to the
determined amount and shall no longer be included in the "selling and
distribution expenses". The Interpretation shall come into force as of the date
of issuance and the Company shall implement the Interpretation No. 18 of
the Accounting Standards for Business Enterprises as of January 1 2024.
2. Changes in significant accounting estimates
Changes in
Approval
Content and reasons for changes in accounting estimates accounting estimates Remark
procedure
Effective time point
In order to further strengthen the management of fixed assets
by sorting out the fixed assets card information of the
It has been
Company and its held subsidiary and combining with the
reviewed and
actual use of the Company's fixed assets the Company in
approved by the Effective from
accordance with the principle of prudence adjusted the net
Board of Directors January 1 2024
residual value rate of the fixed assets of house decoration
and the Board of
machinery equipment (except for gas turbine generator unit)
Supervisors
means of transport electronic equipment and other
equipment from the original 10% to 0-5%.Description of changes in accounting estimates:
For details of the changes in accounting estimates of the Company please refer to the
Announcement No. 2024-022 Announcement of Shenzhen Nanshan Power Co. Ltd. on
Adjustment of Residual Value Rate of Fixed Assets and Changes in Accounting Estimates.Taxes
147Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.（XXXVII） Main tax type and rates
Tax type Tax basis Tax rate
The output tax is calculated based on revenue from the
sale of goods and taxable services calculated according
Value-added tax to the tax law. After deducting the input tax allowed to 13%9%6%5%3%
be deducted in the current period difference shall be the
value-added tax payable.Urban maintenance and Based on the actual value-added tax and consumption
7%
construction tax tax paid
Based on the actual value-added tax and consumption
Education surcharge 3%
tax paid
Local education Based on the actual value-added tax and consumption
2%
surcharge tax paid
Except for the
following enterprises
that enjoy tax
preferential treatment
Corporate income tax Based on taxable income
tax shall be paid at
25% of the taxable
income.For the actual occupied land area of industrial land in
Nanshan District Shenzhen tax shall be paid at RMB 2-
Urban land use tax 8/square meter. For the actual occupied land area of
industrial land in Zhongshang tax shall be paid at RMB
1/square meter.
Foreign taxes shall be calculated according to the tax
Foreign taxes
regulations of each overseas country and region.The tax subjects with different corporate income tax rates are as follows:
Taxpayer name Income tax rate
The Company 15%
Shenzhen Nanshan Power Engineering Company 15%（XXXVIII） Tax preferential treatment
1. Corporate income tax
(1) The Company obtained a national high-tech enterprise certificate numbered GR202444200365
which is valid for 3 years. From 2024 to 2026 the Company's corporate income tax enjoys a
preferential income tax rate of 15% for high-tech enterprise.
(2) Shenzhen Nanshan Power Engineering Company obtained a national high-tech enterprise
certificate numbered GR202344200269 which is valid for 3 years. From 2023 to 2025 the
Company's corporate income tax enjoys a preferential income tax rate of 15% for high-tech
enterprise.
2. Value-added tax
Company Relevant laws regulations Approval Approval Preference Validity
Tax type
name and policies authority No. enjoyed period
Measures for the Value-
Shenzhen
Shenzhen Administration of Value- added tax
Qianhai GJSWZJ
Nanshan added Tax Exemption for exemption
Value- State GG
Power Cross-border Taxable for cross- -
added tax Taxation [2016]
Engineering Activities in Replacement border
Administrati No. 29
Company of Business Tax with taxable
on
Value-added tax activities
148Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Notes to consolidated financial statements items（XXXIX） Monetary funds
Balance at the end of last
Item Ending balance
year
Cash on hand 30264.98 30329.83
Bank deposits 471032644.67 310694227.98
Other monetary funds 7916312.01 5464224.68
Total 478979221.66 316188782.49
Including: total amount deposited abroad 6190580.08 6105051.40
The details of monetary funds that have restrictions on their use due to mortgage pledge or
freezing as well as those deposited overseas with restrictions on repatriation are as follows:
Balance at the end of last
Item Ending balance
year
L/G deposit 7912100.00 5453862.93
Total 7912100.00 5453862.93
In addition as at December 31 2024 the Company had no monetary funds subject to the
restriction to use due to mortgage pledge or freezing and with potential recovery risks.（XL） Financial assets held for trading
Balance at the end of last
Item Ending balance
year
Financial assets measured at fair value with changes
226000000.00
included in the current profit or loss
Including: investments in debt instruments
Investments in equity instruments
Derivative financial assets
Others (note) 226000000.00
Financial assets designated as measured at fair value
and whose changes are recorded in profit or loss for
the period
Including: investments in debt instruments
Others
Total 226000000.00
Note: Other financial assets held for trading of the Company are structured deposits deposited in
commercial banks which will mature by the end of 2024.（XLI） Accounts receivable
1. Disclosure of accounts receivable on an aging basis
Aging Ending balance Balance at the end of last year
Within 1 year 44124575.22 51764528.59
1 to 2 years 21094465.13 40359448.07
2 to 3 years 14485054.31 21478238.86
Over 3 years 3648959.88 5464799.07
Total 83353054.54 119067014.59
149Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
2. Accounts receivable are classified and disclosed according to the method of provision
for bad debts
Ending balance
Category Book balance Provision for bad debts
Provision Book value
Amount Ratio (%) Amount
ratio (%)
Provision for bad debts on
43546002.2152.2415128128.6334.7428417873.58
an individual basis
Provision for bad debts on
39807052.3347.76407900.001.0239399152.33
a credit risk portfolio basis
Total 83353054.54 100.00 15536028.63 18.64 67817025.91
Continued
Balance at the end of last year
Category Book balance Provision for bad debts
Provision Book value
Amount Ratio (%) Amount
ratio (%)
Provision for bad debts
5464799.074.595464799.07100.00
on an individual basis
Provision for bad debts
on a credit risk portfolio 113602215.52 95.41 1626964.42 1.43 111975251.10
basis
Total 119067014.59 100.00 7091763.49 5.96 111975251.10
Important accounts receivable with provision for bad debts made on an individual basis:
Ending balance
Description Provision for bad Provision ratio Reasons for
Book balance
debts (%) provision
China Machinery Not expected to
40018348.6511600475.0728.99
Engineering Corporation be recovered
Shenzhen Petrochemical Legacy matters
Oil Products Bonded 3474613.06 3474613.06 100.00 from the distant
Trading Co. Ltd. past
Total 43492961.71 15075088.13
Provision for bad debts made by portfolio:
Items accrued on a portfolio basis:
Ending balance
Description
Accounts receivable Provision for bad debts Provision ratio (%)
Portfolio II: receivables
from power production and 26657255.44
sales -
Portfolio III: receivables
from integrated energy 13149796.89 407900.00
3.10
service
Total 39807052.33 407900.00 1.02
3. Provision for bad debts accrued reversed or recovered for the current period
Balance at Amount of changes for the current period
Ending
Category the end of Reverse or Charge-off balance
last year Accrual recovery or write-off
Provision for bad
debts on an 5464799.07 11600475.07 1937145.51 15128128.63
individual basis
150Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Balance at Amount of changes for the current period
Ending
Category the end of Reverse or Charge-off
last year Accrual
balance
recovery or write-off
Provision for bad
debts on a credit risk 1626964.42 407900.00 1626964.42 407900.00
portfolio basis
Total 7091763.49 12008375.07 1626964.42 1937145.51 15536028.63
4. Accounts receivable from actual write-off for the current period
Item Write-off amount
Accounts receivable from actual written-off 1937145.51
Important write-off of accounts receivable:
Whether
the
Write-off
payment
Nature of procedure
Write-off Reasons for is
Entity name accounts s
amount write-off generated
receivable performe
by related
d
transactio
ns
The claim is time-
barred due to the Review
Engineering
China Solibase Engineering 1137145.51 extended lapse of by the and technical No
Co. Ltd. time and is Board of
services
deemed Directors
irrecoverable
Total 1137145.51
5. Accounts receivable and contract assets of the top five ending balances by debtors
Proportio
Ending
n to the
balance of
total
Ending provision for
Ending ending
Ending balance balance of bad debts of
balance of balance of
Entity name of accounts accounts accounts
contract accounts
receivable receivable and receivable and
assets receivable
contract assets provision for
and
contract asset
contract
impairment
assets (%)
China Machinery Engineering
40018348.6540018348.6547.9611600475.07
Corporation
Shenzhen Power Supply
26641173.1126641173.1131.93-
Bureau Co. Ltd.Shenzhen Energy Corporation 4404385.09 4404385.09 5.28 -
Power China Hubei
4079000.0088000.004167000.004.99407900.00
Engineering Co. Ltd.Shenzhen Petrochemical
3474613.063474613.064.163474613.06
Bonded Oil Trading Co. Ltd.Total 78617519.91 88000.00 78705519.91 94.32 15482988.13（XLII） Advances to suppliers
1. Advances to suppliers are listed based on aging
Ending balance Balance at the end of last year
Aging
Book balance Ratio (%) Book balance Ratio (%)
Within 1 year 18960631.08 99.47 26780454.52 99.67
151Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Ending balance Balance at the end of last year
Aging
Book balance Ratio (%) Book balance Ratio (%)
1 to 2 years 90037.73 0.47 72700.00 0.27
2 to 3 years
Over 3 years 11683.23 0.06 16021.07 0.06
Total 19062352.04 100.00 26869175.59 100.00
Note: there were no advances to suppliers with an aging of more than one year and a significant
amount at the end of the period.
2. Prepayments of the top five ending balances by prepayment objects
Proportion in total ending
Prepayment object Ending balance balance of advances to
suppliers (%)
Shenzhen Gas Group Co. Ltd. 16187956.50 84.92
Zhongshan Nanlang Town Property Management
1832916.009.62
Co.Ltd.Shenzhen OCT Property (Group) Co. Ltd.
249600.001.31
Commercial Property Management Branch
Shenzhen Branch of Ping An Pension Insurance Co.
120742.000.63
Ltd.Hangzhou Motanni Technology Co. Ltd. Shenzhen
65094.340.34
Branch
Total 18456308.84 96.82（XLIII） Other receivables
Balance at the end of last
Item Ending balance
year
Interest receivable
Dividends receivable
Other receivables 131831575.62 19233117.52
Including: land acquisition and storage
112298115.00
compensation receivable (Note)
Total 131831575.62 19233117.52
Note: the receivable for land acquisition and storage compensation pertains to the remaining
outstanding compensation payment for Plot A recognized by the subsidiary Shenzhen Nanshan
Power Zhongshan Company. The details are as follows:
On December 12 2023 Shenzhen Nanshan Power Zhongshan Company signed the Agreement on
the Recovery of State-Owned Land Use Rights and the Relocation Compensation Agreement with
the Cuiheng New District Management Committee. The agreements confirm the compensated land
reserve acquisition by the Cuiheng New District Management Committee of three parcels of state-
owned land use rights held by Shenzhen Nanshan Power Zhongshan Company in the Hengmen
Industrial Zone Nanlang Street Cuiheng New District Zhongshan City with a total land
acquisition and storage compensation amount to RMB 584453529. Cuiheng New District
Management Committee entrusted Zhongshan Xiwan Construction Investment Co. Ltd. to pay
and advance the project compensation funds.On November 4 2024 in order to ensure the construction land demand of the 300 MW/600 MWh
independent energy storage power station (Phase I) project in Cuiheng New District Zhongshan
City and ensure the smooth progress of the land acquisition and storage of Shenzhen Nanshan
Power Zhongshan Company Shenzhen Nanshan Power Zhongshan Company and Cuiheng New
District Management Committee signed a Supplementary Agreement which divided the original
434.86 mu plot into two parts namely Plot A and Plot B of which Plot A was about 190.87 mu
152Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
and the compensation price was RMB 224711593; Plot B was about 244 mu and the
compensation price was RMB 359741936.On November 29 2024 Shenzhen Nanshan Power Zhongshan Company has signed the Land
Transfer Confirmation Letter with Cuiheng New District Management Committee for Plot A to
complete the transfer confirmation; At the same time in accordance with the agreement Shenzhen
Nanshan Power Zhongshan Company submitted an application to the Zhongshan Municipal
Bureau of Natural Resources for land recovery of all the plot of 434.86 mu and obtained the
Decision on Administrative Handling on December 5 2024 completing the cancellation of
registration of the project land. According to the Accounting Standards for Business Enterprises
and the CSRC's Guidelines for the Application of Regulatory Rules - Accounting No. 3 Plot A has
met the conditions for derecognition. As of the end of 2024 the compensation price of Plot A has
been collected in total of RMB 112413478. According to the agreement the remaining payment
of RMB 112298115 will be made by December 31 2026 at the latest.
1. Other receivables
(1) Other receivables disclosed by aging
Balance at the end of last
Aging Ending balance
year
Within 1 year 116706098.92 1617984.30
1 to 2 years 322956.77 3356.31
2 to 3 years
Over 3 years 46193178.82 48002435.80
Total 163222234.51 49623776.41
(2) Disclosure by category
Ending balance
Category Book balance Provision for bad debts
Provision Book value
Amount Ratio (%) Amount
ratio (%)
Provision for bad
debts on an 31390658.89 19.23 31390658.89 100.00 -
individual basis
Provision for bad
debts on a credit risk 131831575.62 80.77 - 131831575.62
portfolio basis
Total 163222234.51 100.00 31390658.89 19.23 131831575.62
Continued
Balance at the end of last year
Category Book balance Provision for bad debts
Provision Book value
Amount Ratio (%) Amount
ratio (%)
Provision for bad
debts on an 30390658.89 61.24 30390658.89 100.00
individual basis
Provision for bad
debts on a credit risk 19233117.52 38.76 19233117.52
portfolio basis
Total 49623776.41 100.00 30390658.89 61.24 19233117.52
Provision for bad debts made on an individual basis:
Description Ending balance
153Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Provision for bad Provision ratio Reasons for
Book balance
debts (%) provision
Huiyang Kangtai
14311626.7014311626.70100.00
Industrial Company
Receivables from
employee benefit fund 9969037.63 9969037.63 100.00
dividends and taxes Historical leftover
Shandong Jinan Power items which date
Equipment Factory Co. 3560000.00 3560000.00 100.00 back to long time
Ltd. ago and are
Receivables from expected to be
purchase of employee 1736004.16 1736004.16 100.00 irrecoverable
dormitories
Accounts receivable
from Zhongshan 1000000.00 1000000.00 100.00
cogeneration project
Others 813990.40 813990.40 100.00
Total 31390658.89 31390658.89 100.00
Provision for bad debts made by portfolio:
Ending balance
Description
Other receivables Provision for bad debts Provision ratio (%)
Portfolio V: guarantee
deposit and petty cash 3674076.67 - -
portfolio
Portfolio VII: other
receivables and temporary 128157498.95 - -
payments
Total 131831575.62 - -
(3) Provision provision for bad debts
The second The third
The first stage
stage phase
Expected
Expected credit
credit loss for
Provision for bad debts Expected credit loss for the Total
the entire
losses over the entire duration
duration (with
next 12 months (without credit
credit
impairment)
impairment)
Balance at the end of last year 30390658.89 30390658.89
Balance at the end of the previous
year in the current period
--Transfer to the second stage
--Transfer to the third stage
--Reverse to the second stage
--Reverse to the first stage
Provision for the current period 1000000.00 1000000.00
Reverse for the current period
Charge-off for the current period
Write-off for the current period
Other changes
Ending balance 31390658.89 31390658.89
(4) Provision for bad debts made reversed or recovered for the current period
154Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Amount of changes for the current period
Balance at the
Category Reverse or Charge-off Ending balance end of last year Accrual
recovery or write-off
Individual
30390658.891000000.0031390658.89
provision
(5) There were no other receivables actually write-off in the current period
(6) Classification by nature of payment
Book balance at the end of last
Nature of payment Ending book balance
year
Guarantee and deposit 4674076.67 2869769.32
Receivable from employees 12264858.97 12415545.61
Current accounts with external units 146283298.87 34338461.48
Total 163222234.51 49623776.41
(7) Other receivables of the top five ending balances by debtors
Proportion
to the total
Ending
ending
Nature of balance of
Entity name Ending balance Aging balance of
payment provision for
other
bad debts
receivables
(%)
Zhongshan Xiwan Current
Within
Construction Investment Co. accounts with 112298115.00 68.80
1 year
Ltd. external units
Within
Huidong Xiefu Port Current 1 year
Comprehensive Development accounts with 14954889.50 more 9.16
Co. Ltd. external units than 5
years
Current
Huiyang Kangtai Industrial Over 5
accounts with 14311626.70 8.77 14311626.70
Company years
external units
Receivables from employee
Receivable Over 5
benefit fund dividends and 9969037.63 6.11 9969037.63
from employees years
taxes
Current
Shandong Jinan Power Over 5
accounts with 3560000.00 2.18 3560000.00
Equipment Factory Co. Ltd. years
external units
Total 155093668.83 95.02 27840664.33（XLIV） Inventories
1. Inventories classification
Ending balance Balance at the end of last year
Item Provision for Provision for Book
Book balance inventory Book value inventory Book value
balance
depreciation depreciation
Spare 133818765.8 78299565.0 144943485. 85719518.1
55519200.7259223967.83
parts 0 8 98 5
Auxiliary
materials
and low-
417181.8679264.71337917.15344882.11344882.11
value
consuma
bles etc.Contract
1549695.971549695.97
performa
155Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Ending balance Balance at the end of last year
Item Provision for Provision for Book
Book balance inventory Book value inventory Book value
balance
depreciation depreciation
nce cost
Others 47196.59 47196.59 93850.90 93850.90
135832840.280234374.7145382218.86158251.1
Total 55598465.43 59223967.83
29996
2. Provision for inventory depreciation and provision for impairment of contract
performance costs
Increased amount in the Decreased amount in
Balance at the
current period the current period Ending
Item end of last
Reverse or balance
year Accrual Others Others
charge-off
Spare parts 59223967.83 2902185.86 6606952.97 55519200.72
Auxiliary materials
and low-value 79264.71 79264.71
consumables etc.Total 59223967.83 2981450.57 6606952.97 55598465.43（XLV） Contract assets
Ending balance Balance at the end of last year
Item Provision for Provision for
Book balance Book value Book balance Book value
bad debts bad debts
Project
quality 95580.68 95580.68 88000.00 88000.00
guarantee
Total 95580.68 95580.68 88000.00 88000.00（XLVI） Assets held for sale
Estimated Estimated
Ending book Provision for Ending book
Item Fair value disposal disposal
balance impairment value
cost time
Fixed assets 14800817.46 14800817.46 - - 2025
Intangible
9781967.139781967.13--2025
assets
Total 24582784.59 24582784.59
Note: the ending book value of assets held for sale are all carried forward from fixed assets and
intangible assets due to land acquisition and storage by the Company's subsidiary Shenzhen
Nanshan Power Zhongshan Company. Please refer to the notes to other receivables in Note V (V)
to the financial statements for details of the relevant land acquisition and storage matters.According to the Relocation Compensation Agreement the Agreement on the Recovery of State-
Owned Land Use Rights and the supplementary agreement signed by Shenzhen Nanshan Power
Zhongshan Company and Cuiheng New District Management Committee Zhongshan City the
land acquisition and storage for Plot B will be completed and handed over to the Management
Committee before June 30 2025. If the Company fails to complete the handover of Plot B before
the expiration of the agreed handover period the Parties may extend the handover period and the
extension period shall not exceed 3 months. Based on the irrevocable legal binding nature of the
agreements the smooth progress of the land acquisition and storage process for Plot A the orderly
preparations for the acquisition and storage of Plot B the certainty of completing the handover
within one year and the compliance status where pre-reserve asset usage does not affect the
156Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
transaction with clearly defined rights and obligations the Company has classified Plot B and its
above-ground structures as the "assets held for sale" in accordance with applicable accounting
standards reflecting their actual status and anticipated disposal arrangements.（XLVII） Other current assets
Balance at the end of last
Item Ending balance
year
Large-amount negotiable certificate of deposit and
232165987.85225278591.79
accrued interest
Land acquisition and storage production and business
suspension employee compensation and relocation 37899306.75 -
expenses etc. (Note)
Amount of input value-added tax to be deducted 8614307.70 996267.20
Prepaid income tax 6583089.98 6583089.98
Others 265846.94 8019.66
Total 285528539.22 232865968.63
Note: it is collected by the Company's subsidiary Shenzhen Nanshan Power Zhongshan Company
in relation to the land acquisition and storage matters. For details of the relevant land acquisition
and storage matters please refer to the explanatory notes under Other Receivables in Note V (V)
of the notes to the financial statements.In accordance with the Accounting Treatment for Relocation Compensation Matters stipulated in
the CSRC's Guidance on the Application of Regulatory Rules - Accounting Category No. 3
Shenzhen Nanshan Power Zhongshan Company has classified the expenses incurred for
implementing the land acquisition and storage matters including demolition losses of buildings
and ancillary facilities relocation expenses and employee compensation paid during the
production suspension period as other current assets following the land reserve process.（XLVIII） Long-term equity investments
Increase and decrease in the current period
Beginning Investment
balance of profit or
Beginning Adjustments
Investees provision loss
balance Additional Reduced to the other
for recognized investment investment comprehensive
impairment under the income
equity
method
I. Associates
Huidong Xiefu Port
Comprehensive Development
5167333.305063937.72-103395.58
Co. Ltd. (hereinafter referred
to as "Huidong Xiefu")
Jiangsu Liaoyuan
Environmental Protection
Technology Co. Ltd.
84833842.746563378.70
(hereinafter referred to as
"Liaoyuan Environmental
Protection")
Total 90001176.04 5063937.72 6459983.12
Continued:
Increase and decrease in the current period Ending
balance of
Ending
Investees Other Declaration of Provision provision
changes in cash dividend for Others balance for
equity or profits impairment impairment
157Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Increase and decrease in the current period Ending
balance of
Investees Other Declaration of Provision
Ending
provision
changes in cash dividend for Others balance for
equity or profits impairment impairment
I. Associates
Huidong Xiefu Port
Comprehensive Development
Co. Ltd. (hereinafter referred
to as "Huidong Xiefu")
Jiangsu Liaoyuan
Environmental Protection
Technology Co. Ltd.
809700.0090587521.44
(hereinafter referred to as
"Liaoyuan Environmental
Protection")
Total 809700.00 90587521.44（XLIX） Other investments in equity instruments
1. Other investments in equity instruments
Ending balance Balance at the end of last year
Item
Original Fair value Ending Original Fair value Ending
book value changes balance book value changes balance
Sunpower
1400000022782620.162782620140000000140000000
Technology (Jiangsu)
0.0092.92.00.00
Co. Ltd. (Note 1)
Shenzhen Yuanzhi
Ruixin New
Generation
Information -
1000000081400433.100000000100000000
Technology Private 18599566.
0.0065.00.00
Equity Investments 35
Fund Partnership
(Limited Partnership)
(Note 2)
Jiangxi Nuclear 60615000. 60615000. 60615000. 60615000.Power Co. Ltd. 00 00 00 00
Shenzhen New
Energy Storage
50000000.50000000.
Industry Equity Fund -
0000
Partnership (Limited
Partnership)
Shenzhen
--
Petrochemical Oil 2500000.0 2500000.0
2500000.02500000.
Products Bonded 0 0
000
Trading Co. Ltd.-
353115001683054.5354798054303115000300615000
Total 2500000.
0.007.57.00.00
00
Note 1: The changes in fair value recognized in the current period were mainly due to the
continuous growth of the operating performance of the investee. Since the invested enterprise is a
non-public company without active market quotations and considering the Company holds a
minority stake without significant influence it is impracticable to apply either the income
approach or market approach for valuation purposes. Consequently as neither Level 1 nor Level 2
inputs are obtainable the Company has determined the fair value of this equity investments based
on the investee's net asset value at period-end with corresponding fair value changes recognized
accordingly.
158Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Note 2: the decrease in the fair value recognized in the current period is mainly due to the
temporary decline in the stock price of the listed company invested by the partnership.
2. Investment in non-trading equity instruments
Reasons for
The amount measuring at Reasons for
Dividend
of other fair value and transferring
income
comprehensiv whose other
recognize Accumulated Accumulated
Item e income changes are comprehensiv
d in the gains losses
transferred to recognized in e income to
current
retained other retained
period
earnings comprehensiv earnings
e income
Sunpower
Plan to hold
Technology 22782620.9
for the long
(Jiangsu) 2
term
Co. Ltd.Shenzhen
Yuanzhi
Ruixin New
Generation
Information
Technology Plan to hold
201969.018599566.3
Private for the long
35
Equity term
Investments
Fund
Partnership
(Limited
Partnership)
Jiangxi
Plan to hold
Nuclear
for the long
Power Co.term
Ltd.Shenzhen
Petrochemica
l Oil Plan to hold
Products 2500000.00 for the long
Bonded term
Trading Co.Ltd.
201969.022782620.921099566.3
Total
325
（L） Investment properties
Item Houses and buildings Total
1. Original book value
(1) Balance at the end of last year 9708014.96 9708014.96
(2) Increased amount in the current period
- Outsourcing
(3) Reduced amount in the current period
—Disposal
(4) Ending balance 9708014.96 9708014.96
2. Accumulated depreciation and accumulated
amortization
(1) Balance at the end of last year 8043448.36 8043448.36
(2) Increased amount in the current period 166556.76 166556.76
159Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Item Houses and buildings Total
- Provision or amortization 166556.76 166556.76
(3) Reduced amount in the current period
—Disposal
(4) Ending balance 8210005.12 8210005.12
3. Provision for impairment
(1) Balance at the end of last year
(2) Increased amount in the current period
-Provision
(3) Reduced amount in the current period
—Disposal
(4) Ending balance
4. Book value
(1) Ending book value 1498009.84 1498009.84
(2) Book value at the end of last year 1664566.60 1664566.60（LI） Fixed assets
1. Fixed assets and disposal of fixed assets
Balance at the end of last
Item Ending balance
year
Fixed assets 377498094.30 385390614.45
Disposal of fixed assets (Note) 73705696.67 186092119.90
Total 451203790.97 571482734.35
Note: the amount was recognized by the Company's subsidiary Shenzhen Nanshan Power
Zhongshan Company in relation to land acquisition and storage compensation and post-unit
shutdown activities. The decrease in the current period balance was primarily attributable to:
(1) Provision for impairment: among them the provision for impairment of generating unit and
related assets was RMB 63.98 million; The estimated disposal loss of non-relocable and scrapped
assets related to land acquisition and storage was RMB 19.09 million.
(2) According to the land acquisition and storage agreement and the supplementary agreement the
buildings and other assets included in the scope of acquisition and storage are about RMB 26.44
million which are transferred from the disposal of fixed assets to the "assets held for sale". See
Note V (VIII) "Assets held for sale" to the financial statements. According to the agreement
Shenzhen Nanshan Power Zhongshan Company will complete the handover of B plot before June
302025.
160Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
2. Fixed assets
Houses buildings and Electronic equipment
Item Machinery equipment Means of transport Total
decoration and other equipment
1. Original book value
(1) Balance at the end of last year 294887415.19 1657023298.51 6305570.65 44463854.92 2002680139.27
(2) Increased amount in the current period 905836.15 13132923.82 - 164673.63 14203433.60
-Purchase - 1717259.24 - 164673.63 1881932.87
- Transfer-in from projects under construction 905836.15 11415664.58 - - 12321500.73
(3) Reduced amount in the current period 1074210.00 - 1096968.18 3695220.44 5866398.62
-Disposal or scrapping 1074210.00 - 1096968.18 3695220.44 5866398.62
(4) Ending balance 294719041.34 1670156222.33 5208602.47 40933308.11 2011017174.25
2. Accumulated depreciation - -
(1) Balance at the end of last year 204203072.71 1253698686.11 4715994.15 35616644.51 1498234397.48
(2) Increased amount in the current period 4581037.76 14189744.01 968301.79 1779795.09 21518878.65
-Provision 4581037.76 14189744.01 968301.79 1779795.09 21518878.65
(3) Reduced amount in the current period 966789.00 - 977213.07 3241294.52 5185296.59
-Disposal or scrapping 966789.00 - 977213.07 3241294.52 5185296.59
(4) Ending balance 207817321.47 1267888430.12 4707082.87 34155145.08 1514567979.54
3. Provision for impairment
(1) Balance at the end of last year 17852047.84 100972179.24 53176.48 177723.78 119055127.34
(2) Increased amount in the current period - -
-Provision - - -
(3) Reduced amount in the current period - - - 104026.93 104026.93
161Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Houses buildings and Electronic equipment
Item Machinery equipment Means of transport Total
decoration and other equipment
-Disposal or scrapping 104026.93 104026.93
(4) Ending balance 17852047.84 100972179.24 53176.48 73696.85 118951100.41
4. Book value
(1) Ending book value 69049672.03 301295612.97 448343.12 6704466.18 377498094.30
(2) Book value at the end of last year 72832294.64 302352433.16 1536400.02 8669486.63 385390614.45
162Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
3. Fixed assets without the certificate of title
Reasons for failure to acquire the
Item Book value
certificate of title
Oil depot complex 443246.19 Formalities not completed
Chemical water treatment workshop 232960.00 Formalities not completed
Cooling tower 673259.25 Formalities not completed
Cafeteria of complex building 189744.15 Formalities not completed
Mail room at the main entrance 47264.13 Formalities not completed
Total 1586473.72
4. Disposal of fixed assets
Item Ending balance Balance at the end of last year
Buildings and constructions - 24723346.08
Machinery equipment 72098979.01 160560314.62
Means of transport 50000.00 16103.45
Electronic equipment and other equipment 189564.16
Others 1367153.50 792355.75
Total 73705696.67 186092119.90
Note: for details please refer to the Note V (XIII) 1. "Fixed assets and disposal of fixed assets" to
the financial statements.（LII） Construction in progress
1. Construction in progress and project materials
Balance at the end of last
Item Ending balance
year
Construction in progress 6983713.85 3448855.10
Project materials
Total 6983713.85 3448855.10
2. Construction in progress
Ending balance Balance at the end of last year
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Oil-to-gas
project of
Nanshan 9441286.39 9441286.39 - 9441286.39 9441286.39
Power
Plant
Technical
Renovation
2633664.92475877.6
Project of 4238664.96 1605000.00 4080877.62 1605000.00
62
Nanshan
Power Plant
Zhongshan
Independen
4259294.1
t Energy 4259294.18
8
Storage
Project
163Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Ending balance Balance at the end of last year
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Others 90754.71 90754.71 972977.48 972977.48
18030000.211046286.36983713.814495141.411046286.33448855.1
Total
495990
3. Changes in significant construction in progress in the current period
Transferred for
Increased Other decreases
Beginning the current
Project name amount in the in the current Ending balance
balance period
current period period
Fixed assets
Zhongshan
Independent Energy 4259294.18 4259294.18
Storage Project
MTC industrial and
commercial energy 111520.15 9213594.06 9325114.21
storage project
Continued:
Including:
Proportion Interest
Budget Accumulated amount of
of project Project capitalization
amount amount of interest Sources of
Project name investment progress rate in the
(RMB interest capitalization funds
in budget (%) current
10000) capitalization in the current
(%) period (%)
period
Zhongshan
Independent Self-
30715.2417.0917.09
Energy Storage financed
Project
MTC industrial
and commercial Self-
939.1299.3099.30
energy storage financed
project（LIII） Right-of-use assets
1. Right-of-use assets
Item Buildings Total
I. Original book value
1. Beginning balance 16322014.37 16322014.37
2. Increased amount in the
8696499.488696499.48
current period
3. Decreased amount in the
16322014.3716322014.37
current period
4. Ending balance 8696499.48 8696499.48
II. Accumulated
depreciation
1. Beginning balance 14055067.95 14055067.95
2. Increased amount in the
4803425.474803425.47
current period
(1) Provision 4803425.47 4803425.47
3. Decreased amount in the
16322014.3716322014.37
current period
4. Ending balance 2536479.05 2536479.05
III. Provision for
impairment
164Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Item Buildings Total
IV. Book value
1. Ending book value 6160020.43 6160020.43
2. Beginning book value 2266946.42 2266946.42
Note: the right-of-use assets refer to the Company's operating leases of 16F/17F Hantang Building
Property for office use.（LIV） Intangible assets
Item Land use right Patent Software Total
1. Original book value
(1) Balance at the end of last year 60813994.76 138625.07 3858558.72 64811178.55
(2) Increased amount in the current
--1384584.861384584.86
period
-Purchase 1384584.86 1384584.86
(3) Reduced amount in the current
30013383.62-55813.5630069197.18
period
—Disposal (Note) 30013383.62 55813.56 30069197.18
(4) Ending balance 30800611.14 138625.07 5187330.02 36126566.23
2. Accumulated amortization
(1) Balance at the end of last year 41785841.59 49165.10 3690542.83 45525549.52
(2) Increased amount in the current
6591.1217347.44320565.45344504.01
period
-Provision 6591.12 17347.44 320565.45 344504.01
(3) Reduced amount in the current
11037405.55-55813.5611093219.11
period
—Disposal 11037405.55 55813.56 11093219.11
(4) Ending balance 30755027.16 66512.54 3955294.72 34776834.42
3. Provision for impairment
(1) Balance at the end of last year
(2) Increased amount in the current
period
-Provision
(3) Reduced amount in the current
period
—Disposal
(4) Ending balance
4. Book value
(1) Ending book value 45583.98 72112.53 1232035.30 1349731.81
(2) Book value at the end of last year 19028153.17 89459.97 168015.89 19285629.03
Note: the main reason is that due to land acquisition and storage the Company's subsidiary
Shenzhen Nanshan Power Zhongshan Company transferred the land use right included in the
scope of acquisition and storage from the intangible assets to the "assets held for sale" according
to the land acquisition and storage agreement and the supplementary agreement as detailed in the
Note V (VIII) "Assets held for sale" to the financial statements.（LV）Long-term deferred expenses
165Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Increased Amortization
Balance at the Other Ending
Item amount in the amount in the
end of last year reductions balance
current period current period
Major repair expenses 3170034.87 4304675.85 1963954.16 5510756.56
Renovation costs 721798.06 429692.85 292105.21
Total 3891832.93 4304675.85 2393647.01 5802861.77（LVI） Deferred tax assets and deferred tax liabilities
1. Deferred tax assets not offset
Ending balance Balance at the end of last year
Item Deductible Deductible Deferred tax Deferred tax
temporary temporary
assets assets
differences differences
Fair value changes of other
investments in equity 2500000.00 625000.00 2500000.00 625000.00
instruments
Provision for bad debts 3649109.93 547366.49
Total 2500000.00 625000.00 6149109.93 1172366.49
2. Details of unrecognized deferred tax assets
Balance at the end of
Item Ending balance
last year
Deductible temporary differences 1065725874.19 547773352.17
Deductible losses 369872214.75 542749124.79
Total 1435598088.94 1090522476.96
3. The deductible losses for which deferred tax assets have not been recognized will expire
in the following years
Balance at the end of last
Year Ending balance Remark
year
Year 2024 5350767.06
20253443492.77
202659517953.84174438579.72
202788187897.68187111062.55
202865849419.7662579931.14
202963539789.28
20301402852.8426803142.56
203110426619.6415911576.84
203250074067.5250074067.52
203315746106.2517036504.63
203415127507.94
Total 369872214.75 542749124.79（LVII） Other non-current assets
Ending balance Balance at the end of last year
Item Provision Provision
Book balance for Book value Book balance for Book value
impairment impairment
Advance 4739340.56 4739340.56
166Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Ending balance Balance at the end of last year
Item Provision Provision
Book balance for Book value Book balance for Book value
impairment impairment
payment for
Zhongshan
independent
energy
storage
project
Relevant
expenses for
functional
substitution
of Nanshan
Power Plant
and land 857135.84 857135.84 36157735.24 36157735.24
acquisition
and storage
payment of
Zhongshan
Company
(Note)
Total 5596476.40 5596476.40 36157735.24 36157735.24
Note: The main reason for the decrease in the balance of the current period is that according to the
latest progress of land acquisition and storage of the Company's subsidiary Shenzhen Nanshan
Power Zhongshan Company losses from demolition of houses and other appurtenances relocation
expenses employee compensation paid during the suspension of production and business and
other expenses incurred in the land acquisition and storage have been reclassified to other current
assets. For details please refer to the Note V (IX) "Other current assets" to the Financial
Statements .（LVIII） Assets with restricted ownership or use rights
Ending balance Balance at the end of last year
Item Restri RestriBook Restri Book Restric
Book value cted Book value cted
balance ctions balance tions
type type
Monetary Guarant Guarant
7912100.00 7912100.00 Freeze 5453862.93 5453862.93 Freeze
funds ee ee
Total 7912100.00 7912100.00 5453862.93 5453862.93（LIX） Short-term borrowings
Balance at the end of last
Item Ending balance
year
Credit loan 106558036.22 270933506.37
Pledged loan (note) 162000000.00 70000000.00
Accrued interest on short-term borrowings 56972.97 304380.35
Total 268615009.19 341237886.72
Note: The Company pledged its own patent for invention to China Merchants Bank Co. Ltd.Shenzhen Branch for a loan of RMB 30 million pledged a letter of credit to Shanghai Pudong
Development Bank Co. Ltd. Shenzhen Branch for a loan of RMB 87 million and pledged a letter
of credit to Industrial Bank Co. Ltd. Shenzhen Branch for a loan of RMB 45 million.（LX）Accounts payable
167Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
1. Accounts payable
Balance at the end of last
Item Ending balance
year
Payments for goods labor services and services 13560180.89 3445513.63
Electricity bill 461976.72 896652.87
Total 14022157.61 4342166.50
2. Top five accounts payable
Proportion to the
Entity name Book balance accounts payable
balance (%)
Shenzhen Nangang Power Engineering Co. Ltd. 4851983.00 34.60
Zike Co. Ltd. 1872500.00 13.35
Yotai Digital Energy Technology (Shenzhen)
1187768.308.47
Co. Ltd.Shenzhen Zhongshenli Development Technology
825338.425.89
Co. Ltd.Shenzhen Yutuo Intelligent Co. Ltd 815750.00 5.82
Total 9553339.72 68.13（LXI） Contract liabilities
Balance at the end of last
Item Ending balance
year
Advance payment for integrated energy service 50000.00 -
Total 50000.00 -（LXII） Employee compensation payable
1. Employee compensation payable
Increased amount Decreased
Balance at the
Item in the current amount in the Ending balance
end of last year
period current period
Short-term compensation 14000126.57 100689582.83 98636829.93 16052879.47
Post-employment benefits-
-15980622.9115980622.91-
defined contribution plans
Dismissal benefits (note) 32238856.00 - 32238856.00 -
Total 46238982.57 116670205.74 146856308.84 16052879.47
Note: For the employee compensation related to land acquisition and storage of Zhongshan
Company please refer to the Note V (V) "Other receivables" to the financial statements for details
of the relevant land acquisition and storage matters.
2. Short-term compensation
Increased Decreased
Balance at the
Item amount in the amount in the Ending balance
end of last year
current period current period
(1) Salaries bonuses allowances and
13904838.4772782435.4071507091.5315180182.34
subsidies
(2) Employee welfare fees - 12359112.01 11627411.90 731700.11
(3) Social insurance premiums - 4565286.80 4565286.80 -
168Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Increased Decreased
Balance at the
Item amount in the amount in the Ending balance
end of last year
current period current period
Including: medical insurance
-3687064.403687064.40-
premiums
Work injury insurance premium - 508366.08 508366.08 -
Maternity insurance premium - 369856.32 369856.32 -
(4) Housing provident fund - 9300532.44 9300532.44 -
(5) Trade union funds and employee
95288.101682216.181636507.26140997.02
education expenses
Total 14000126.57 100689582.83 98636829.93 16052879.47
3. Defined contribution plans list
Increased Decreased
Balance at the
Item amount in the amount in the Ending balance
end of last year
current period current period
Basic endowment insurance - 10784065.94 10784065.94 -
Unemployment insurance premiums - 625546.07 625546.07 -
Enterprise annuity payment - 4571010.90 4571010.90 -
Total - 15980622.91 15980622.91 -（LXIII） Taxes payable
Balance at the end of last
Tax items Ending balance
year
Corporate income tax 9140402.85
Value-added tax 4261775.21 2282514.44
Personal income tax 712556.99 620879.50
Stamp duty 172648.01 160105.10
Urban maintenance and construction tax 32043.68 15063.61
Education surcharge 13687.09 6404.48
Local education surcharge 9201.24 4346.16
Others 6592.97 17.18
Total 14348908.04 3089330.47（LXIV） Other payables
Balance at the end of last
Item Ending balance
year
Interest payable
Dividends payable
Other payables 15685234.29 13973447.42
Total 15685234.29 13973447.42
1. Other payables
(1) Presented according to nature of payment
Balance at the end of last
Item Ending balance
year
Labor and service fees (note) 14687088.11 1522715.43
Guarantee 750651.39 8993154.68
169Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Balance at the end of last
Item Ending balance
year
Others 247494.79 3457577.31
Total 15685234.29 13973447.42
Note: The main reason for the increase in the balance of the current period is that its subsidiary
Shenzhen Nanshan Power Zhongshan Company made provision for the costs of dismantling and
disposing the oil tank and oil pipeline in plot A according to the agreement signed with Zhongshan
Xiwan Construction Investment Co. Ltd. for land acquisition and storage matters.
(2) Top five other payables
Proportion to the
Entity name Book balance other accounts
payable balance (%)
Zhongshan Xiwan Construction Investment Co.
11754465.1474.94
Ltd.Lixinzhonglian CPAS (Special General
470000.003.00
Partnership)
Zhanjiang Hongda Petrochemical Co. Ltd. 336413.68 2.14
Shenzhen Shennong Kitchen Co. Ltd 301800.00 1.92
Cummins Power Equipment (Dongguan) Co.
206000.001.31
Ltd.Total 13068678.82 83.31（LXV） Non-current liabilities due within one year
Balance at the end of last
Item Ending balance
year
Lease liabilities due within one year 4466835.32 2527155.52
Long-term borrowings due within one year 1399170.93
Total 4466835.32 3926326.45（LXVI） Other current liabilities
Balance at the end of last
Item Ending balance
year
Progress payment for land acquisition and
107922581.00
storage compensation (Note)
Interests of other partners in the partnership 403.82
Total 107922984.82
Note: For the compensation of Plot B received by the Company's subsidiary Shenzhen Nanshan
Power Zhongshan Company due to land acquisition and storage matters please refer to the Note
V (V) "Other receivables" to the financial statements for details of the relevant land acquisition
and storage matters.The total compensation price of Plot B was RMB 359741936. As of the end of 2024 the progress
payment of Plot B compensation of RMB 107922581 has been received. As of the end of the
reporting period the transfer of Plot B has not been completed and the compensation received has
been reclassified to other current liabilities.
170Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.（LXVII） Long-term borrowings
Balance at the end of last
Item Ending balance
year
Credit loan - 58829426.30
Total - 58829426.30（LXVIII） Lease liabilities
1. Lease liabilities details
Item Ending balance Beginning balance
Lease liabilities 2125910.18
Total 2125910.18
2. Lease liabilities maturity analysis
Item Ending balance Beginning balance
1-2 years 2125910.18
Total 2125910.18（LXIX） Estimated liabilities
Increased Decreased
Balance at the Ending
Item amount in the amount in the Causes
end of last year balance
current period current period
Others 15000000.00 - 15000000.00 -
Total 15000000.00 - 15000000.00 -
Note: On November 29 2013 Xiefu Company and Jiahua Construction Products (Shenzhen) Co.Ltd. ("Jiahua Construction") signed a supplementary agreement to the equity transfer agreement
with respect to the historical issues between Xiefu Company Huidong Xiefu and Huidong
Renshan Town Government and its subordinate Renshan Group on the ownership and division of
the rights and interests of Yapojiao Wharf. In order to solve the historical issues Shenzhen Xiefu
deposited RMB 12500000.00 into the co-managed account for guarantee. In addition Xiefu
pledged 20% of the equity of Huidong Xiefu to Jiahua Construction with a pledge period of two
years and the amount of claims guaranteed by pledge not exceeding RMB 15000000.00. The
Company expected a loss of RMB 27500000.00 in relation to this matter. The balance at the end
of 2019 was RMB 26646056.28.On November 12 2020 Huidong Xiefu and other parties concerned reached a preliminary
reconciliation agreement on the land dispute in the estimated liabilities. Xiefu Company reversed
the estimated liabilities of RMB 6584816.78 accordingly. In 2020 Xiefu Company bore the
lawyer's fees and other expenses of RMB 137731.22 for the matter according to the agreed
proportion and the estimated liabilities were reduced by RMB 6722548.00 in 2020. The balance
of RMB 19923508.28 is the repayment obligation that is likely to occur before the above matters
are completed.On November 12 2020 Huizhou Commercial Construction and Development Company and
Huidong Server Harbor Comprehensive Development Company signed the Agreement on Transfer
of Claims and the record of enforcement and compromise of the People's Court of Huidong
County partially resolving the historical issues concerning the ownership and division of the
equity of Yapojiao Wharf. On January 20 2021 Xiefu Company received the refund of RMB
5000000.00 from the co-managed account and it reversed the estimated liabilities RMB
4573508.28 accordingly. In 2021 Shenzhen Server bore the legal and other expenses of RMB
350000 in accordance with the agreed ratio with a total decrease of RMB 4923508.28 in
estimated liabilities in 2021. The balance of RMB 15000000.00 is the repayment obligation that
171Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
is likely to occur before the above matters are completed.On September 18 2024 Xiefu Company had completed the cancellation of registration of equity
pledge and the deregistration number was (YH) GQZXZ (2024) No. 44130012400157271. On
October 25 2024 Xiefu Company and Huizhou Gangtou Group signed the Property Transaction
Contract on the transfer of 40% equity of Huizhou Xiefu. On November 11 2024 Xiefu Company
had received the money for transferring 40% equity of Huidong Xiefu from Huizhou Gangtou
Group through the Shenzhen United Property and Equity Exchange and completed the industrial
and commercial registration procedures for the change of shareholders. Xiefu Company will no
longer bear the repayment obligation for the above matters and will reverse the recognized
estimated liabilities.（LXX） Deferred income
1. Classification of deferred income
Increased Decreased
Balance at the
Item amount in the amount in the Ending balance Causes
end of last year
current period current period
Government See Table 2 for
67869348.07-6346472.1061522875.97
subsidies details
Total 67869348.07 - 6346472.10 61522875.97
2. Deferred income related to government subsidies
New Amount
Asset
subsidy recognized in
Balance at the Other Ending related/inc
Liabilities amount in profit or loss in
end of last year changes balance ome
the current the current
related
period period
Shenzhen air
quality 44598351.64 - 4731818.23 - 39866533.41 Asset
improvement related
subsidy
Government
subsidies for
Asset
low-nitrogen 18376607.94 458768.16 17917839.78
related
equipment
renovation
Motor energy
efficiency 263520.00 34560.00 - 228960.00 Asset
improvement related
subsidy scheme
Funds for
technological
transformation 917388.90 70666.66 846722.24 Asset
and investment related
projects in 2021-
2022
Industrial
Asset
development 1125000.00 375000.00 750000.00
related
special grants
Supporting
funds for
industrial energy
conservation
and
comprehensive
utilization Asset
1642500.00547500.001095000.00
projects in the related
Green
Development
and Industrial
"Carbon Peak"
Support
Program
172Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
New Amount
Asset
subsidy recognized in
Balance at the Other Ending related/inc
Liabilities amount in profit or loss in
end of last year changes balance ome
the current the current
related
period period
Circular
economy
Asset
support fund for 945979.59 128159.05 817820.54
related
sludge drying
project
Total 67869348.07 6346472.10 61522875.97（LXXI） Other non-current liabilities
Balance at the end of last
Item Ending balance
year
Progress payment for land acquisition and storage
104000000.00
compensation (Note)
Interests of other partners in the partnership 45112.54
Total 104045112.54
Note: the main reason for the decrease in the balance in the current period is that according to the
latest progress of land acquisition and storage of the Company's subsidiary Shenzhen Nanshan
Power Zhongshan Company the land compensation price received for Plot B has been reclassified
to other current liabilities. For details please refer to the Note V (XXVIII) "Other current
liabilities" to the financial statements.（LXXII） Equity
Increase (+) and decrease (-) in the current period
Conversion
Balance at the
Item Issuance of Bonus Ending balance end of last year of new provident Others Subtotal
shares
shares fund into
shares
Total shares 602762596.00 602762596.00（LXXIII） Capital reserve
Increased Decreased
Balance at the
Item amount in the amount in the Ending balance
end of last year
current period current period
Capital premium (equity
233035439.62233035439.62
premium)
Other capital reserve 129735482.48 129735482.48
Total 362770922.10 362770922.10
173Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.（LXXIV） Other comprehensive income
The current period amount
Less:
Less:
recognized in
recognized in
other
Balance at the other Amount comprehensive Less: Attributable to Attributable Ending
Item end of last comprehensive before income income in the income parent to minority
year income in the
balance
tax for the previous period tax company after shareholders
previous period
current period and transferred expenses tax after tax
and transferred
to retained
to current profit
earnings in the
or loss
current period
1. Other comprehensive income that cannot
be reclassified into profit or loss
Including: remeasure changes in benefit
plans
Other comprehensive income that cannot be
transferred to profit or loss under the equity
method
Fair value changes of other investments in
-2500000.004183054.57--4183054.57-1683054.57
equity instruments
Total other comprehensive income -2500000.00 4183054.57 - - 4183054.57 - 1683054.57
174Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.（LXXV） Special reserve
Balance at the end of Increased amount in Decreased amount in
Item Ending balance
last year the current period the current period
Safety production costs 5767486.06 5767486.06
Total 5767486.06 5767486.06
Note: the Company's power production business shall be withdrawn in accordance with the Administrative
Measures for the Withdrawal and Use of Enterprise Work Safety Expenses (CZ [2022] No. 136) (issued on
December 12 2022) and the work safety expenses shall be included in the current profit or loss and transferred to
the special reserves at the same time.（LXXVI） Surplus reserve
Balance at the end of Increased amount in Decreased amount in
Item Ending balance
last year the current period the current period
Statutory surplus reserve 310158957.87 310158957.87
Discretionary surplus reserve 22749439.73 22749439.73
Total 332908397.60 332908397.60（LXXVII） Undistributed profits
Item The current period amount Amount in previous period
Undistributed profits at the end of last year before adjustments 163346776.24 159187979.14
Adjustments to the total amount of the undistributed profits at the
beginning of the year (increase + decrease -)
Undistributed profits at the beginning of the year after adjustments 163346776.24 159187979.14
Plus: net profit attributable to owners of parent company for the
21908828.574158797.10
current period
Less: withdrawal of statutory surplus reserve
Dividends payable on ordinary shares
Ending undistributed profits 185255604.81 163346776.24（LXXVIII） Operating revenue and operating costs
1. Operating revenue and operating costs
The current period amount Amount in previous period
Item
Revenue Cost Revenue Cost
Main business 437329918.38 410482141.18 588370569.20 581180842.37
Other business 5642037.47 4964591.21 1409621.51 261701.61
Total 442971955.85 415446732.39 589780190.71 581442543.98
2. Break down by product or service type
The current period amount Amount in previous period
Item
Revenue Cost Revenue Cost
Power production
419930286.71405194367.48562688722.91572117240.68
and sale
Integrated energy
39382694.0728530461.1042299536.0125075252.67
service
Others 5768308.02 1223850.40 1468149.52 261701.61
Consolidation
-22109332.95-19501946.59-16676217.73-16011650.98
offset
175Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
The current period amount Amount in previous period
Item
Revenue Cost Revenue Cost
Total 442971955.85 415446732.39 589780190.71 581442543.98
3. By region
The current period amount Amount in previous period
Item
Revenue Cost Revenue Cost
Domestic 442971955.85 415446732.39 589780190.71 581442543.98
Total 442971955.85 415446732.39 589780190.71 581442543.98
4. Revenue arising from contracts
Item The current period amount Amount in previous period
Classification by contract performance obligations
Including: revenue recognized at a certain time point 425572324.18 564098343.42
Revenue recognized within a certain period of time 17399631.67 25681847.29
Total 442971955.85 589780190.71（LXXIX） Taxes and surcharges
Item The current period amount Amount in previous period
Property tax 2329842.01 2241783.87
Land use tax 937331.78 887196.02
Stamp duty 499797.33 542870.30
Urban maintenance and construction tax 468703.79 653636.44
Education surcharge 200873.02 277505.45
Local education surcharge 133915.34 185003.66
Environmental protection tax 49598.31 8230.82
Vehicle and vessel tax 1800.00 3390.00
Total 4621861.58 4799616.56（LXXX） Selling and distribution expenses
Item The current period amount Amount in previous period
Employee compensation 2529240.42 1884492.17
Travel expenses 57932.89 363759.10
Office expenses 2189.62 250648.83
Entertainment expenses 73589.20 160201.41
Agency fee 478121.30 141603.76
Others 14531.15 31043.38
Total 3155604.58 2831748.65（LXXXI） G&A expenses
Item The current period amount Amount in previous period
Employee compensation 65990120.42 29928766.04
176Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Item The current period amount Amount in previous period
Depreciation cost 11649901.01 15161467.11
Agency fee 1992538.79 2506646.25
Entertainment expenses 1602591.82 1500934.74
Water electricity and property management fees 2392530.81 1094236.61
Repair costs 1289469.91 815123.18
Communication and information fees 902311.16 744919.13
Travel expenses 824632.99 702232.98
Vehicle usage fee 756417.89 607305.89
Office expenses 709686.09 572337.65
Fees of the Board of Directors 406182.95 472695.27
Greening and cleaning fees 728772.95 326335.65
Rental fees 581042.03 291561.03
Stock related fee 256854.79 114895.51
Amortization of intangible assets 332318.80 65558.04
Others 5091726.62 3425581.79
Total 95507099.03 58330596.87（LXXXII） R&D expenses
Item The current period amount Amount in previous period
Employee compensation 14757285.96 24140938.27
Depreciation cost 6091463.31 1705020.54
Others 493029.00 993953.93
Total 21341778.27 26839912.74（LXXXIII） Financial expenses
Item The current period amount Amount in previous period
Interest costs 11829545.09 18665115.07
Less: interest income 5185764.60 7358119.93
Foreign exchange losses -91424.96 -72164.01
Bank handling charges 263409.57 344806.25
Total 6815765.10 11579637.38（LXXXIV） Other benefits
Item The current period amount Amount in previous period
Government subsidies 6832542.00 44431212.00
Personal tax handling charges refund 34481.46 74677.51
Total 6867023.46 44505889.51
Government subsidies included in other income
Amount in previous
Subsidy project The current period amount Asset related/income related
period
177Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Amount in previous
Subsidy project The current period amount Asset related/income related
period
Shenzhen air quality improvement
4731818.23 4731818.16 Asset related
subsidy
Supporting funds for industrial energy
conservation and comprehensive
utilization projects in the Green 547500.00 547500.00 Asset related
Development and Industrial "Carbon
Peak" Support Program
Low nitrogen project renovation
458768.16 5239056.75 Asset related
grants
Industrial development special grants 375000.00 375000.00 Asset related
Special project for promoting high-
241800.00 Income related
quality industrial development
Subsidies for promoting the
continuous and smooth operation of 139600.00 Income related
industries above designated size
Supporting funds for sludge drying
128159.05 6625535.60 Asset related
project
Stable employment subsidy 83669.90 140838.47 Income related
Financing plan for technological
70666.66 70666.68 Asset related
transformation investment projects
Motor energy efficiency improvement
34560.00 34560.00 Asset related
subsidy scheme
Subsidies for supporting industrial
enterprises to increase production and 20000.00 Income related
efficiency
Lump-sum post expansion subsidy 1000.00 Income related
Special funds for energy conservation
342111.34 Asset related
and emission reduction
Green and low-carbon development
450000.00 Income related
project grants
Thermal power plant relief grants 25400000.00 Income related
Special funds for industrial
27625.00 Income related
development
National high-tech enterprise doubling
300000.00 Income related
program
Pilot demonstration funding for
100000.00 Income related
industrial "carbon peak" work
Science and technology innovation
46500.00 Income related
voucher
Total 6832542.00 44431212.00（LXXXV） Investment income
The current period Amount in previous
Item
amount period
Investment income from disposal of long-term equity investments (Note) 66718753.76
Investment income from financial assets held for trading during the holding
11286239.1018538064.54
period
Income from long-term equity investments accounted for equity method
6326077.767719627.80
under the equity method
Dividend income received from investments in equity instruments during the
201969.038740206.13
holding period
Bill discount expenses -44739.75
Total 84488299.90 34997898.47
Note: in order to actively promote the revitalization of assets in stock during the reporting period the
Company's subsidiary Xiefu Company publicly listed and transferred its 40% equity in Huidong Xiefu through
the Shenzhen United Property and Equity Exchange signed the Property Transaction Contract on October 25
178Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
2024 and received all the equity transfer consideration on November 11 2024 the industrial and commercial
registration change procedure was completed for the relevant equity on November 29 2024 meeting the
conditions for derecognition and finally confirming the investment income of the equity transfer.（LXXXVI） Losses from credit impairment
Item The current period amount Amount in previous period
Loss from bad debts of accounts receivable (Note) -10381410.65 85000.00
Loss from bad debts of other receivables -1000000.00 1105348.40
Total -11381410.65 1190348.40
Note: For details of the provision for losses from credit impairment of accounts receivable please refer to Note
V (III) "accounts receivable" 3. "Provision for bad debts accrued reversed or recovered in the current period" to
the financial statements.（LXXXVII） Asset impairment loss
Item The current period amount Amount in previous period
Loss from impairment of fixed assets (Note) -63982886.86
Impairment losses of inventories contract performance
-2406652.82-162985.78
costs etc.Total -66389539.68 -162985.78
Note: the losses from impairment of fixed assets are provided for the power generation unit equipment and
related assets of Shenzhen Nanshan Power Zhongshan Company. The above assets were listed for sale on the
Shenzhen United Property and Equity Exchange on December 25 2024 for the generating unit equipment and
related assets. On February 26 2025 the listed assets were successfully delisted and on March 4 2025 a
Physical Asset Transaction Contract was signed with the transferee Fujian Hengjing Investment Co. Ltd. On
March 30 2025 the delivery procedures of assets will be completed. As of the end of the reporting period
based on the principle of prudence Shenzhen Nanshan Power Zhongshan Company has made provision for
impairment for the relevant assets based on the recoverable amount of the public listing transaction amount
minus the disposal expenses. The specific calculation is as follows (unit: RMB 10000):
Item Amount Remark
Book value before provision for
12374.58
impairment
Based on the listed transaction price in February 2025 and considering the
Recoverable amount 5976.29
relevant disposal costs
Accrued provision for
6398.29
impairment（LXXXVIII） Gains from disposal of assets
The current period Amount in previous Amount included in non-recurring
Item
amount period profit or loss in the current period
Profit or loss from disposal of non-
163529971.971886136.92163529971.97
current assets (Note)
Total 163529971.97 1886136.92 163529971.97
Note: it is mainly for the land acquisition and storage of Shenzhen Nanshan Power Zhongshan Company. For
details please refer to the Note V (V) "Other receivables" to the financial statements.Refer to the Accounting Treatment of Relocation Compensation Matters in the Guidelines for the Application of
179Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Regulatory Rules - Accounting No. 3 issued by the CSRC: costs such as loss on demolition of buildings and other
appurtenances relocation expenses and employee compensation paid during the period of suspension of
production and business etc. incurred in order to fulfill the above asset disposal transactions are transferred to
profit or loss upon derecognition of the assets disposed of if they are expected to be reimbursed by the
consideration for the disposal of the assets in the future. The compensation price for land acquisition and storage
of Plot A of Shenzhen Nanshan Power Zhongshan Company was RMB 224.7116 million the final confirmed cost
and expense expenditure of Plot A was RMB 61.693 million and the net income from land acquisition and storage
was RMB 163.0186 million. The specific calculation is as follows (unit: RMB 10000):
Item Amount
Compensation for land acquisition and storage of Plot A 22471.16
Subtotal of revenue 22471.16
Losses from demolition of buildings land use right and other appurtenances 2688.35
Employee compensation paid during the period of suspension of production
2178.32
and business
Relocation expenses 1302.62
Subtotal of expenditure 6169.30
Net income from land acquisition and storage 16301.86（LXXXIX） Non-operating revenue
Amount included in non-
The current period Amount in previous
Item recurring profit or loss in
amount period
the current period
Subsidies for house demolition and
453068.402481631.19453068.40
resettlement
Revenue from compensation for violation 100000.00 100000.00
Compensation for power outage and insurance 5522309.24
Payables that cannot be paid 3683060.82
Total 553068.40 11687001.25 553068.40（XC） Non-operating expenses
Amount included in
The current period Amount in previous non-recurring profit or
Item
amount period loss in the current
period
Losses from damage or scrapping of non-current
121310.787745.81121310.78
assets
Others 14023.70 58370.42 14023.70
Total 135334.48 66116.23 135334.48（XCI） Income tax expenses
1. Income tax expenses schedule
Item The current period amount Amount in previous period
Current income tax expenses 9140402.85
Deferred income tax expenses 547366.49
Total 9687769.34
2. Adjustment process of accounting profit and income tax expenses
180Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Item The current period amount
Total profit 73615193.82
Income tax expenses calculated at statutory [or applicable] tax rate 11637362.48
Impact of different tax rates applicable to subsidiaries 15803032.94
Impact of non-taxable revenue -984506.81
Impact of non-deductible costs expenses and losses 945463.55
Impact of deductible losses on the use of unrecognized deferred tax assets in prior periods -53730954.71
Impact of deductible temporary differences or deductible losses for which no deferred tax assets
36017371.89
have been recognized in the current period
Income tax expenses 9687769.34（XCII） Earnings per share
1. Basic earnings per share
Basic earnings per share is calculated by dividing the consolidated net profit attributable to ordinary shareholders
of the parent company by the weighted average of outstanding ordinary shares of the Company:
Item The current period amount Amount in previous period
Consolidated net profit attributable to ordinary shareholders of the
21908828.574158797.10
parent company
Weighted average of outstanding ordinary shares of the Company 602762596.00 602762596.00
Basic earnings per share 0.0363 0.0069
2. Diluted earnings per share
Diluted earnings per share are calculated by dividing the consolidated net profit (diluted) attributable to ordinary
shareholders of the parent company by the weighted average (diluted) of the Company's outstanding ordinary
shares:
Item The current period amount Amount in previous period
Consolidated net profit attributable to ordinary shareholders of the
21908828.574158797.10
parent company (diluted)
Weighted average of outstanding ordinary shares of the Company
602762596.00602762596.00
(diluted)
Diluted earnings per share 0.0363 0.0069（XCIII） Statement of cash flows items
1. Cash received from other operating activities
Item The current period amount Amount in previous period
Current accounts received etc. 9172925.54 9200800.64
Interest income 5646611.86 6416103.02
L/G deposit recovered 5453862.93
Income from government subsidies 372441.17 30154963.47
Total 20645841.50 45771867.13
2. Cash paid for other operating activities
Item The current period amount Amount in previous period
Expenses from payment period 54929118.83 32799144.64
181Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Item The current period amount Amount in previous period
Paid L/G deposit 7912100.00
Current accounts paid etc. 2225743.89 3524581.70
Total 65066962.72 36323726.34
3. Cash received from other investing activities
Item The current period amount Amount in previous period
Redemption of structured deposits and cash of certificates of
452000000.00620010220.37
deposit
Received interest on current accounts among related parties - 344800.00
Total 452000000.00 620355020.37
4. Cash paid for other investing activities
Item The current period amount Amount in previous period
Cash of structured deposits and certificates of deposit 226000000.00 446000000.00
Cash paid for disposal of assets - 393066.79
Total 226000000.00 446393066.79
5. Cash paid for other financing activities
Item The current period amount Amount in previous period
Payment for principal and interest of lease liabilities 6927038.90 6314826.00
Total 6927038.90 6314826.00
6. Changes in liabilities arising from financing activities
Increased amount in the current Decreased amount in the
Balance at the period current period
Item Ending balance
end of last year Non-cash Non-cash
Cash changes Cash changes
changes changes
Short-
term
341237886.72313558036.227046969.68393227883.43268615009.19
borrowin
gs
Long-
term
58829426.301167282.1459996708.44
borrowin
gs
Non-
current
liabilities
3926326.454466835.323926326.454466835.32
due
within
one year
Lease
9182836.132280749.204776176.752125910.18
liabilities
Total 403993639.47 313558036.22 21863923.27 459431667.52 4776176.75 275207754.69（XCIV） Supplementary information of Statement of Cash Flows
1. Supplementary information of Statement of Cash Flows
The current period Amount in previous
Supplementary information
amount period
182Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
The current period Amount in previous
Supplementary information
amount period
1. Adjusting net profit to cash flows from operating activities
Net profit 63927424.48 -2005692.93
Plus: losses from credit impairment 11381410.65 -1190348.40
Provision for asset impairment 66389539.68 162985.78
Depreciation and amortization of investment properties 166556.76 168777.60
Depreciation of fixed assets 21518878.65 29328545.77
Depreciation of right-of-use assets 4803425.47 5440671.48
Amortization of intangible assets 344504.01 589301.32
Amortization of long-term deferred expenses 2393647.01 916014.97
Amortization of deferred income -6346472.10 -17966248.53
Losses from disposal of fixed assets intangible assets and other long-term
-163529971.97-1886136.92
assets (income expressed with "-")
Losses on write-off of fixed assets (income expressed with "-") 121310.78 7745.81
Losses from changes in fair value ("-" for gains) -
Financial expenses (income expressed with "-") 11829545.09 18665115.07
Investment losses (income expressed with "-") -84488299.90 -34997898.47
Decrease in deferred tax assets (increases expressed with "-") 547366.49
Increase in deferred tax liabilities (decreases expressed with "-") -
Decrease in inventories (increases expressed with "-") 16156331.74 -1023698.59
Decrease in operating receivables (increases expressed with "-") 36300129.85 43475853.03
Increase in operating payables (decreases expressed with "-") -19151092.74 -140056963.91
Others
Net cash flows from operating activities -37635766.05 -100371976.92
2. Significant investments and financing activities that do not involve cash
receipts and payments
Conversion of debt into capital
Convertible corporate bonds due within one year
3. Net changes in cash and cash equivalents
Ending balance of cash 471067121.66 310734919.56
Less: beginning balance of cash 310734919.56 648021672.06
Plus: ending balance of cash equivalents
Less: beginning balance of cash equivalents -
Net increase in cash equivalents 160332202.10 -337286752.50
2. Composition of cash and cash equivalents
Balance at the end of last
Item Ending balance
year
I. Cash 471067121.66 310734919.56
Including: cash on hand 30264.98 30329.83
Bank deposits readily available for payment 471032644.67 310694227.98
Other monetary funds readily available for payment 4212.01 10361.75
183Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Balance at the end of last
Item Ending balance
year
Deposits with the central bank available for payment
Interbank deposits
Interbank lending
II. Cash equivalents
Including: bond investments due within three months
III. Balance of ending cash and cash equivalents 471067121.66 310734919.56
Including: restricted cash and cash equivalents used by the parent
company or subsidiaries within the group
3. Monetary funds that are not classified as cash and cash equivalents
Reasons for not being
Amount in previous
Item The current period amount classified as cash and
period
cash equivalents
L/G deposit 7912100.00 5453862.93 Frozen restricted
Total 7912100.00 5453862.93（XCV） Assets with restricted ownership or right of use
Item Ending book value Reason for restriction
Monetary funds 7912100.00 L/G deposit（XCVI） Foreign currency monetary items
Ending foreign currency Conversion Ending converted RMB
Item
balance exchange rate balance
Monetary funds
Including: USD 841884.64 7.1884 6051803.55
EUR 1018.00 7.5257 7661.17
HKD 146681.29 0.9260 135832.74
SGD 2858.03 5.2562 15022.47
Total 6210319.93（XCVII） Lease
1. The Company serves as the Lessee
Item The current period amount Amount in previous period
Interest expenses on lease liabilities 176995.22 264995.49
Total cash outflow related to lease 5048300.00 6314826.00
Variable lease payments not included in the
measurement of lease liabilities
Lease expenses for short-term lease or low-value
assets simplified
2. The Company serves as the Lessor
Operating leases when serving as the Lessor
Including: revenue related to variable
Item Lease income
lease payments not included in lease
184Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
receipts
House lease 1435783.34
Total 1435783.34
R&D expenditures
Amount incurred in the current Amount incurred in previous
Item
period period
Employee compensation 14757285.96 24140938.27
Depreciation cost 6091463.31 1705020.54
Others 493029.00 993953.93
Total 21341778.27 26839912.74
Including: expensed R&D expenditures 21341778.27 26839912.74
Total 21341778.27 26839912.74
Equity in other entities（XCVIII） Equity in subsidiaries
1. Composition of enterprise group
Main place of Shareholding ratio (%) Acquisition
Name of subsidiary
business Direct Indirect method
Shenzhen Nanshan Power (Zhongshan) Power Co. Ltd. Zhongshan 80.00 Establishment
Shenzhen Nanshan Power Gas Turbine Engineering Technology
Shenzhen 100.00 Establishment
(Shenzhen) Co. Ltd.Shenzhen Nanshan Power Environmental Protection
Shenzhen 100.00 Establishment
(Shenzhen) Co. Ltd.Shenzhen Xiefu Energy Co. Ltd. Shenzhen 50.00 Establishment
Shenzhen New Power Industrial Co. Ltd. Shenzhen 100.00 Establishment
Shennan Energy (Singapore) Co. Ltd. Singapore 100.00 Establishment
Hong Kong Syndisome Co. Ltd. Hongkong 100.00 Establishment
Zhuhai Hengqin Zhuozhi Investment Partnership (Limited
Zhuhai 99.96 Establishment
Partnership)
Shenzhen Nanshan Power Xiwan Energy (Zhongshan) Co.Ltd. Zhongshan 51.00 Establishment
2. Important non-wholly owned subsidiaries
Dividends
Shareholding Profits and losses
declared to be
ratio of attributable to
distributed to Ending balance of
Name of subsidiary minority minority
minority minority interests
shareholders shareholders in the
shareholders the
(%) current period
current period
Shenzhen Nanshan Power (Zhongshan)
20%13278764.45-93004719.71
Power Co. Ltd.
3. Main financial information of important non-wholly owned subsidiaries
Shenzhen Nanshan Power (Zhongshan) Power Co. Ltd.Name of
subsidiary Non-current Current Non-current
Current assets Total assets Total liabilities
assets liabilities liabilities
185Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Shenzhen Nanshan Power (Zhongshan) Power Co. Ltd.Name of
subsidiary Non-current Current Non-current
Current assets Total assets Total liabilities
assets liabilities liabilities
Ending
231477900.8184593178.85316071079.66732191175.33-732191175.33
balance
Amount at
the end of 24201215.36 244116938.96 268318154.32 696314557.88 104000000.00 800314557.88
last year
Continued
The current period amount Amount in previous period
Name of Cash flows Cash flows
Total Total
subsidiary Operating from Operating from
Net profit comprehensive Net profit comprehensive
revenue operating revenue operating
income income
activities activities
Shenzhen
Nanshan Power
11113824.4766876307.8966876307.89-4165698.9162908561.23-31198053.79-31198053.79-1869970.79
(Zhongshan)
Power Co. Ltd.（XCIX） Equity in joint venture arrangements or associates
1. Significant joint ventures or associates
Shareholding Accounting
ratio (%) treatments
Whether the
Main for
Name of joint ventures or Place of Nature of Company's
place of investments
associates registration business activities are
business Direct Indirect in joint
strategic
ventures or
associates
Liaoyuan Environmental Yixing Yixing Environmental Equity
9.935 No
Protection (note) Jiangsu Jiangsu protection method
Note: the Company invested RMB 72873680.00 in Liaoyuan Environmental Protection accounting for 9.935%
of the equity of Liaoyuan Environmental Protection and is the second largest shareholder of Liaoyuan
Environmental Protection. The Board of Directors of Liaoyuan Environmental Protection has five directors. On
March 12 2022 the Company appointed one director constituting a significant impact on Liaoyuan
Environmental Protection.
2. Main financial information of significant joint ventures or associates
Balance at the end of the previous
Ending balance/current amount
Item year/Amount for the previous period
Liaoyuan Environmental Protection Liaoyuan Environmental Protection
545635587.61
Current assets 651001263.41
419944510.12
Non-current assets 404984086.78
965580097.73
Total assets 1055985350.19
198836634.15
Current liabilities 203426112.83
198836634.15
Non-current liabilities 26261285.84
225039488.72
Total liabilities 229687398.67
223928134.66
Minority interests 251069667.59
Equity attributable to shareholders of the 516612474.35
575228283.93
parent company
Net asset share calculated based on 51325449.33
57148930.01
shareholding ratio
186Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Balance at the end of the previous
Ending balance/current amount
Item year/Amount for the previous period
Liaoyuan Environmental Protection Liaoyuan Environmental Protection
33508393.41
Adjustments 32502512.58
33508393.41
-Others 32502512.58
Book value of equity investments in 84833842.74
90587521.44
associates
Fair value of equity investments in associates
--
with publicly quoted prices
660404337.83
Operating revenue 699720001.48
85937325.14
Net profit 97066322.72
Net profit attributable to shareholders of the 68971850.12
66681142.05
parent company
Net profit from discontinued operations
Other comprehensive income
68971850.12
Total comprehensive income 66681142.05
Dividends received from associates in the
809700.001214550.00
current period
Government subsidies
（C） Liability items involving government subsidies
New subsidies in the Amount included in Amount included in
Balance at the end of
Liabilities current period non-operating revenue other income for the
last year
Amount in the current period current period
Deferred income 67869348.07 6346472.10
(Continued)
Amount of cost offset in Asset-related/
Liabilities Other changes Ending balance
the current period income-related
Deferred income 61522875.97 Asset related
（CI） Government subsidies included in the current profit or loss
Amount incurred in previous
Subsidy project Amount incurred in the current period
period
Other benefits 6832542.00 44431212.00
6832542.0044431212.00
Risks related to financial instruments
The Company's main financial instruments include equity investments long-term and short-term borrowings
accounts receivable accounts payable other receivables etc. For details of various financial instruments please
refer to the relevant items in the Note V. The risks related to these financial instruments and the risk management
policies adopted by the Company to mitigate these risks are described below. The management of the Company
manages and monitors these risk exposures to ensure that the above risks are controlled within a limited range.The Company uses sensitivity analysis techniques to analyze the impact that reasonable and probable changes in
risk variables may have on current profit or loss or shareholders' equity. As any risk variable seldom changes in
isolation and the correlation between the variables will have a significant effect on the final affected amount of
the change of a risk variable the following contents are carried out under the assumption that the change of each
variable is independently:
187Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
（CII） Credit risk
Credit risk refers to the risk that one party to financial instruments fails to perform its obligations causing the
other party to suffer financial losses. The Company is mainly exposed to customer credit risk caused by credit
sales. Before entering into a new contract the Company assesses the credit risk of the new customers including
external credit ratings and in some cases bank references (when this information is available). The Company sets
a credit limit for each customer which is the maximum amount for which no additional approval is required.The Company ensures that the Company's overall credit risk is within a controllable range through quarterly
monitoring of credit ratings of existing customers and monthly review of aging analysis of accounts receivable.When monitoring the credit risk of customers customers are grouped according to their credit characteristics.Customers rated as "high risk" are placed on the restricted customer list and may only be given for credit sales by
the Company in the future with additional approval otherwise they must be required to pay the corresponding
amount in advance.
（CIII） Market risk
Market risk of financial instruments refers to the risk that the fair value or future cash flows of financial
instruments fluctuates due to changes in market prices including exchange rate risk interest rate risk and other
price risks.
(1) Interest rate risk
Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments fluctuates due to
changes in market interest rates. The Company's risk of changes in cash flows of financial instruments due to
changes in interest rates is mainly related to variable-rate bank borrowings.The sensitivity analysis of interest rate risk is based on the following assumptions:
Changes in market interest rates affect interest income or expenses of variable-rate financial instruments; For
fixed-rate financial instruments measured fair value changes in market interest rates only affect their interest
income or expenses; For derivative financial instruments designated as hedging instruments changes in market
interest rates affect their fair value and all interest rate hedging is expected to be highly effective; Changes in the
fair value of derivative financial instruments and other financial assets and liabilities which are calculated by
using the discounted cash flow method at the market interest rate on the balance sheet date.As of December 31 2024 the Company's bank borrowings with floating interest rate totaled RMB 2309631.11.Based on the above assumptions with other variables unchanged assuming a 5% changes in interest rates the
pre-tax impact on current profit or loss and shareholders' equity is as follows:
Current year Previous year
Changes in interest rates Impact on shareholders' Impact on shareholders'
Impact on profits Impact on profits
equity equity
Increase of 5% -115481.56 -115481.56 -204375.14 -204375.14
Decrease of 5% 115481.56 115481.56 204375.14 204375.14
(2) Exchange rate risk
Exchange rate risk refers to the risk that the fair value or future cash flows of financial instruments fluctuates due
to fluctuations in foreign exchange rates. The Company tries its best to match foreign currency revenues with
foreign currency expenditures to reduce exchange rate risk. In addition the Company may also enter into forward
foreign exchange contracts or currency swap contracts to avoid exchange rate risk. During the current period and
the previous period the Company did not sign any forward foreign exchange contract or currency swap contract.
188Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
The exchange rate risk exposed to the Company mainly comes from financial assets and financial liabilities
denominated in foreign currencies and the amounts of foreign-currency financial assets and foreign-currency
financial liabilities converted into RMB are listed as follows:
Ending balance Balance at the end of last year
Item Other Other
USD foreign Total USD foreign Total
currencies currencies
Monetary funds 6051803.55 158516.38 6210319.93 5931199.10 188141.17 6119340.27
Total 6051803.55 158516.38 6210319.93 5931199.10 188141.17 6119340.27
As of December 31 2024 with all other variables remaining unchanged if RMB appreciates or depreciates by 5%
against foreign currencies the Company's net profit will increase or decrease by RMB 310516. The Management
believes that 5% reasonably reflects the reasonable range of possible changes in RMB against foreign currencies
in the following year.
（CIV） Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligations that is settled by
the delivery of cash or other financial assets. It is the Company's policy to ensure that it has sufficient cash to
repay its debts as and when they fall due. Liquidity risk is centrally controlled by the Company's Finance
Department. The Finance Department ensures that the Company has sufficient funds to repay its debt under all
reasonable forecasts by monitoring cash balances readily realizable securities and rolling forecasts of cash flows
over the next 12 months.Disclosure of fair value
The input value used for measuring fair value is divided into three levels:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company
can access on the measurement date.Level 2 inputs are directly or indirectly observable inputs of relevant assets or liabilities other than Level 1 inputs.Level 3 inputs are unobservable inputs of related assets or liabilities.The level to which the results of fair value measurement belong is determined by the lowest level of inputs that
are significant to fair value measurement as a whole.
1. Fair values of assets and liabilities measured at fair value as at December 31 2024
Fair value as at December 31 2024
Item Measured at the Measured at the Measured at the fair
fair value of level fair value of level Total
value of level 1
23
Continuous measurement at fair value
Other investments in equity instruments 354798054.57 354798054.57
Including: non-trading equity instrument
354798054.57354798054.57
investments
Total assets with continuous measurement at fair
354798054.57354798054.57
value
2. Valuation techniques and qualitative and quantitative information of important parameters used for items
measured at the fair value of Level 2 on a continuing and non-continuous basis
At the end of the period the structured deposits are taken as the fair value according to the type of financial
products and the forecast of future cash flows.
3. Basis for determining the market price of items measured at the fair value of Level 3 on a continuing and non-
continuous basis
189Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
For non-trading equity instruments investments the Company uses valuation techniques to determine their fair
value. The valuation models used mainly are discounted cash flow model and market comparable company model
etc. The input values of valuation techniques mainly include risk-free interest rate benchmark interest rate
exchange rate credit spread liquidity premium illiquidity discount etc.Related parties and related transactions
（CV） Information on the parent company of the Company
The Company does not have a parent company as none of its shareholders hold more than 50% of the Company's
shares and cannot form a control relationship with the Company by other means.
（CVI） Information on the Company's subsidiaries
For details of the Company's subsidiaries please refer to "VII. (I) Interests in Other entities" in the notes.
（CVII） Information on the Company's joint ventures and associates
For details of the Company's significant joint ventures or associates please refer to the Note "VII. (II) Equity in
joint venture arrangements or associates".
（CVIII） Information on other related parties
Relationship between other related parties and the
Name of other related parties
Company
Shenzhen Energy Corporation (hereinafter referred to as "Energy Legal person holding more than 5% of the
Corporation") Company's shares
Legal person holding more than 5% of the
Shenzhen Guangju Industrial Co. Ltd.Company's shares
Legal person holding more than 5% of the
HONG KONG NAM HOI (INTERNATIONAL) LTD
Company's shares
Legal person that indirectly holds more than 5% of
Shenzhen Capital Holdings Co. Ltd.the Company's shares through Energy Corporation
Zhang Ming the supervisor of the Company serves
Artron Art (Group) Co. Ltd.as a director of the Company
Holding enterprise of the Company's largest
Shenzhen MTC Co. Ltd.shareholder
Directors supervisors and senior officers of the Company Key managers
（CIX） Related transactions
1. Related transactions of purchase and sale of goods and rendering and acceptance of services
Purchase of goods/acceptance of services
Details of related The current period Amount in previous
Related party
transactions amount period
Purchase of
Artron Art (Group) Co. Ltd. and its subsidiaries 28918.50 146016.00
goods
Sales of goods/rendering of services
Details of related The current period Amount in previous
Related party
transactions amount period
Services for
SHENZHEN ENERGY Corporation property 4404385.09
management
Energy
Shenzhen MTC Co. Ltd. management 1226856.89 -
services
Technical
China Science and Technology Development Co. Ltd. transformation 58800.00 -
service
190Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Details of related The current period Amount in previous
Related party
transactions amount period
Engineering
Shenzhen Clou Electronics Co. Ltd. and its subsidiary installation 252689.25 -
services
2. Related party guarantees
The Company has no related-party guarantees.
3. Remuneration of key officers
Item The current period amount Amount in previous period
Remuneration of key officers RMB 6.9511 million RMB 5.9984 million
（CX） Receivables and payables of related parties
1. Receivables
Ending balance Balance at the end of last year
Project name Related party Provision Provision for
Book balance Book balance for bad
bad debts
debts
Other receivables Huidong Xiefu - 15532630.74
Commitments and contingencies
（CXI） Important commitments
1. Information on letters of guarantee issued as of December 31 2024
The Company applied to Shanghai Pudong Development Bank Co. Ltd. Shenzhen Branch for issuing a payment
guarantee within the credit line with an amount of RMB 30 million and due on July 16 2025.The Company's subsidiary Shenzhen Nanshan Power Environmental Protection Company applied to China
Merchants Bank Co. Ltd. Shenzhen Branch for issuing a performance guarantee within the credit line with an
amount of RMB 2.8 million and due on March 31 2025. Shenzhen Nanshan Power Environmental Protection
Company applied to China Merchants Bank Co. Ltd. Shenzhen Branch for issuing a performance guarantee
within the credit line with an amount of RMB 3.7 million and due on March 31 2026.The Company's subsidiary Shenzhen Nanshan Power Engineering Company applied to Agricultural Bank of
China Limited Shenzhen OCT Sub-branch for issuing a performance guarantee within the credit line with an
amount of RMB 1.4121 million and due on June 30 2027.
2. Other commitments
As of December 31 2024 except for the above matters the Company had no other important commitments
required to be disclosed.
（CXII） Contingencies
As of December 31 2024 the Company had no contingencies required to be disclosed.Events after the balance sheet date
As of December 31 2024 the Company had no other subsequent events required to be disclosed.Other important events
（CXIII） Information on segments
1. Determination basis and accounting policies of reporting segments
For management purposes the Company and subsidiaries are divided into business units based on products and
191Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
services. The Company has three reporting segments as follows:
(1) Power Production and Sale Division;
(2) Integrated Energy Service Segment;
(3) Other segments
The Company's management periodically evaluates the operating results of its operating segments to decide on the
allocation of resources to them and to evaluate their performance.Segment reporting information is disclosed in accordance with the accounting policies and measurement criteria
used by the segments in reporting to the Management which are consistent with the basis of accounting and
measurement used in the preparation of the financial statements.
2. Financial information of reporting segments
Power Production Integrated Energy Inter-segment
Item Other Segments Total
and Sale Division Service Segment offsetting
Operating
420334462.8639382694.075364131.8722109332.95442971955.85
revenue
Operating
405195393.1228530461.101222824.7619501946.59415446732.39
costs
Total assets 2270795129.83 95858355.43 264470740.27 618387589.94 2012736635.59
Total liabilities 702631828.38 42488019.60 12747325.44 253054378.53 504812794.89
（CXIV） Others
1. Annuity plan
According to the Company's enterprise annuity plan the Company accrues and pays enterprise annuities at 8% of
employees' wages.Notes to the main items of the parent company's financial statements
（CXV） Accounts receivable
1. Disclosure of accounts receivable on an aging basis
Aging Ending balance Balance at the end of last year
Within 1 year 26641173.11 26981407.91
Subtotal 26641173.11 26981407.91
Less: provision for bad debts
Total 26641173.11 26981407.91
2. Accounts receivable are classified and disclosed according to the method of provision for bad debts
Ending balance
Category Book balance Provision for bad debts
Provision ratio Book value
Amount Ratio (%) Amount
(%)
Provision for bad debts on an
individual basis
Provision for bad debts on a
26641173.11100.0026641173.11
credit risk portfolio basis
192Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Ending balance
Category Book balance Provision for bad debts
Provision ratio Book value
Amount Ratio (%) Amount
(%)
Total 26641173.11 100.00 26641173.11
Balance at the end of last year
Category Book balance Provision for bad debts
Provision ratio Book value
Amount Ratio (%) Amount
(%)
Provision for bad debts on an
individual basis
Provision for bad debts on a
26981407.91100.0026981407.91
credit risk portfolio basis
Total 26981407.91 100.00 26981407.91
Provision for bad debts made by portfolio:
Items accrued on a portfolio basis:
Ending balance
Description
Accounts receivable Provision for bad debts Provision ratio (%)
Portfolio II: receivables from
26641173.11
power production and sales
Total 26641173.11
3. Accounts receivable and contract assets of the top five ending balances by debtors
Proportion to the Ending balance of
total ending provision for bad
Ending Ending balance
Ending balance balance of debts of accounts
balance of of accounts
Entity name of accounts accounts receivable and
contract receivable and
receivable receivable and provision for
assets contract assets
contract assets contract asset
(%) impairment
Shenzhen Power Supply Bureau
26641173.1126641173.11100.00
Co. Ltd.Total 26641173.11 26641173.11 100.00
（CXVI） Other receivables
Balance at the end of last
Item Ending balance
year
Interest receivable
Dividends receivable
Other receivables 614157681.93 714553901.02
Total 614157681.93 714553901.02
1. Other receivables
(1) Disclosure based on aging
Aging Ending balance Balance at the end of last year
Within 1 year 100172359.91 711403571.07
1 to 2 years 512439711.54 2500.00
193Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Aging Ending balance Balance at the end of last year
2 to 3 years
Over 3 years 27570625.97 29172845.44
Total 640182697.42 740578916.51
(2) Disclosure by category
Ending balance
Category Book balance Provision for bad debts
Provision ratio Book value
Amount Ratio (%) Amount
(%)
Provision for bad debts on an
individual basis 26025015.49 4.07 26025015.49 100.00 -
Provision for bad debts on a
credit risk portfolio basis 614157681.93 95.93 614157681.93
Total 640182697.42 100.00 26025015.49 4.07 614157681.93
Continued
Balance at the end of last year
Category Book balance Provision for bad debts
Provision ratio Book value
Amount Ratio (%) Amount
(%)
Provision for bad debts on an
individual basis 26025015.49 3.51 26025015.49 100.00
Provision for bad debts on a
credit risk portfolio basis 714553901.02 96.49 714553901.02
Total 740578916.51 100.00 26025015.49 3.51 714553901.02
(3) Provision for bad debts on an individual basis
Ending balance
Description
Book balance Provision for bad debts Provision ratio (%) Reasons for provision
Huiyang Kangtai 14311626.70 14311626.70 100.00
Industrial Company Historical leftover
Receivables from items which date back
employee benefit fund 9969037.63 9969037.63 100.00 to long time ago and
dividends and taxes are expected to be
Receivables from irrecoverable
purchase of employee 1736004.16 1736004.16 100.00
dormitories
Others 8347.00 8347.00 100.00
Total 26025015.49 26025015.49 100.00
(4) Provision for bad debts on a portfolio basis
Ending balance
Description
Other receivables Provision for bad debts Provision ratio (%)
Portfolio IV: current accounts of 611645846.09
related parties within the consolidation
Portfolio V: guarantee deposit and 1528568.67
petty cash portfolio
194Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Ending balance
Description
Other receivables Provision for bad debts Provision ratio (%)
Portfolio VII: other receivables and 983267.17
temporary payments
Total 614157681.93
(5) Provision for bad debts
The first stage The second stage The third phase
Expected credit
Expected credit
Provision for bad debts Expected credit loss for the entire loss for the entire Total
losses over the next duration (with
duration (without
12 months credit
credit impairment)
impairment)
Balance at the end of last year 26025015.49 26025015.49
Balance at the end of the previous year in
the current period
--Transfer to the second stage
--Transfer to the third stage
--Reverse to the second stage
--Reverse to the first stage
Provision for the current period
Reverse for the current period
Charge-off for the current period
Write-off for the current period
Other changes
Ending balance 26025015.49 26025015.49
(6) Classification by nature of payment
Nature of payment Ending book balance Book balance at the end of last year
Transactions among related parties within
611645846.09712425641.88
the combination
Other receivables and temporary payments 15170475.09 14645149.15
Receivable from employees 11837807.57 11882548.16
Margin security deposit and petty cash
1528568.671625577.32
portfolio
Total 640182697.42 740578916.51
(7) Centralized fund management
Amounts included in other receivables due to centralized fund
607171580.03
management
The Company centralizedly manages the funds and the
principal and interest of the subsidiary receivable is RMB
Situation description
607171580.03 and the principal and interest of the subsidiary
payable is RMB 130549686.64.
（CXVII） Long-term equity investments
Ending balance Balance at the end of last year
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investments in 923167363.65 445002245.26 478165118.39 855811150.92 445002245.26 410808905.66
195Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Ending balance Balance at the end of last year
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
subsidiaries
Investments in
associates and joint 90587521.44 90587521.44 84833842.74 84833842.74
ventures
Total 1013754885.09 445002245.26 568752639.83 940644993.66 445002245.26 495642748.40
1. Investments in subsidiaries
Provision for
Ending
Balance at the Increased Decreased impairment
Ending balance of
Investees end of last amount in the amount in the in the
balance provision for
year current period current period current
impairment
period
Shenzhen Xiefu Energy Co.
26650000.0026650000.00
Ltd.Shennan Energy (Singapore)
6703800.006703800.00
Co. Ltd.Shenzhen New Power
175637763.02257272360.5849916147.85382993975.7513709556.49
Industrial Co. Ltd.Shenzhen Nanshan Power
410740001.00-410740001.00410740000.00
(Zhongshan) Power Co. Ltd.Shenzhen Nanshan Power Gas
Turbine Engineering
24460360.00-24460360.00
Technology (Shenzhen) Co.Ltd.Shenzhen Nanshan Power
Environmental Protection 70191704.81 - 70191704.81 20552688.77
(Shenzhen) Co. Ltd.Zhuhai Hengqin Zhuozhi
Investment Partnership 141427522.09 - 140000000.00 1427522.09
(Limited Partnership)
Total 855811150.92 257272360.58 189916147.85 923167363.65 445002245.26
2. Investments in associates and joint ventures
Beginning Increase and decrease in the current period
balance of Investment Adjustment
Beginning provision
Investees profit or loss s to the
balance for Additional Reduced recognized other
impairmen investment investment under the comprehens
t equity method ive income
Associates 84833842.74 6563378.70
Subtotal 84833842.74 6563378.70
Total 84833842.74 6563378.70
Continued:
Increase and decrease in the current period Ending
balance of
Investees Declaration of Provision
provision
Other changes Ending balance
cash dividend for Others for
in equity
or profits impairment impairmen
t
Associates 809700.00 90587521.44
Subtotal 809700.00 90587521.44
Total 809700.00 90587521.44
（CXVIII） Operating revenue and operating costs
196Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
1. Operating revenue and operating costs
The current period amount Amount in previous period
Item
Revenue Cost Revenue Cost
Main business 322454274.03 339266651.44 264690176.35 357865804.80
Other business 57022453.48 3607161.70 126959772.74 5823727.52
Total 379476727.51 342873813.14 391649949.09 363689532.32
2. Break down by product or service type
The current period amount Amount in previous period
Item
Revenue Cost Revenue Cost
Power production and sale 379072551.36 342872787.50 391340842.07 363617073.55
Others 404176.15 1025.64 309107.02 72458.77
Total 379476727.51 342873813.14 391649949.09 363689532.32
3. By region
The current period amount Amount in previous period
Item
Revenue Cost Revenue Cost
Domestic 379476727.51 342873813.14 391649949.09 363689532.32
Total 379476727.51 342873813.14 391649949.09 363689532.32
4. Revenue arising from contracts
Item The current period amount Amount in previous period
Classification by contract performance obligations
Including: revenue recognized at a certain time point 379476727.51 391649949.09
Revenue recognized within a certain period of time
Total 379476727.51 391649949.09
（CXIX） Investment income
Amount in previous
Item The current period amount
period
Income from long-term equity investments accounted for equity method
6563378.706966316.30
under the equity method
Investment income from financial assets held for trading during the holding
11286239.1018538064.54
period
Dividend income received from investments in equity instruments during
17474329.61340206.13
the holding period
Dividends from long-term equity investments 6717600.82
Total 35323947.41 32562187.79
Supplementary information
（CXX） Statement of non-recurring profit or loss in the current period
Item Amount Remark
Profits and losses on disposal of non-current assets 163881112.16
Tax returns deduction and exemption approved beyond the authority or
without official approval documents
197Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Item Amount Remark
Government subsidies included in the current profit or loss (except for
government subsidies closely related to the enterprise business obtained 486069.90
by quota or quantity at unified state standards)
Fund occupation fees charged to non-financial enterprises included in the
current profit or loss
The investment cost in subsidiaries associates and joint ventures
acquired by an enterprise is less than the gains from the fair value of the
identifiable net assets of the investees that shall be enjoyed when
acquiring the investment
Profit or loss from exchange of non-monetary assets
Profit or loss from entrusting others to invest or manage assets
Various provision for asset impairment made due to force majeure
factors such as natural disasters
Profits and losses of debt restructuring
Enterprise reorganizing expenses such as employee accommodation
costs and integration expenses etc.Profit or loss in excess of the fair value arising from transactions with
obviously unfair transaction price
Current net profit or loss of subsidiaries from the beginning of the period
to the combination date arising from business combination under the
common control
Profit or loss arising from contingencies unrelated to the Company's
normal business operations
Profit or loss from changes in fair value arising from holdings of
financial assets held for trading derivative financial assets financial
liabilities held for trading and derivative financial liabilities and
investment income from disposal of financial assets held for trading 11286239.10
derivative financial assets financial liabilities held for trading derivative
financial liabilities and other debt investments except for effective
hedging operations related to the normal business of the Company
Reversal of provision for impairment of receivables individually tested
for impairment
Profit or loss from external entrusted loans
Profit or loss from fair value changes of investment properties that are
subsequently measured by using the fair value model
Impact of one-off adjustment to the current profit or loss in accordance
with laws and regulations on taxation and accounting on the current
profit or loss
Revenue from custody fees obtained from entrusted operations
Other non-operating revenue and expenses other than the above 775495.19
Other profit or loss items that meet the definition of non-recurring profit
or loss
Subtotal 176428916.35
Less: income tax impact 9140402.85
Changes in the amount of minority interests (after tax) 57871593.36
Total 109416920.14
（CXXI） Return on equity and earnings per share
Earnings per share (RMB)
Weighted average rate of
Profit during the reporting period
return on net assets (%) Basic earnings per Diluted earnings
share per share
Net profit attributable to ordinary shareholders of the
1.490.03630.0363
Company
Net profit attributable to ordinary shareholders of the
-5.95-0.1452-0.1452
Company after deducting non-recurring profit or loss
198Notes to the Financial Statements for the Year Ended December 31 2024 of Shenzhen Nanshan Power Co. Ltd.
Shenzhen Nanshan Power Co. Ltd.(Official seal)
April 21 2025
199
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