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