Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.Stock code: 000037 Stock Abbreviation: Shenzhen Nanshan Power A Shenzhen Nanshan Announcement No.: 2024-051
200037 Power B
Shenzhen Nanshan Power Co. Ltd.The Semi-Annual Report 2024
August 23 2024
1Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Section I Important contents and definitions
The Board of Directors the Board of Supervisors directors supervisors and
senior officers of the Company guarantee that the contents of the semi-annual
report are true accurate and complete and do not contain false records
misleading statements or major omissions and that they bear individual and
joint legal liabilities.Kong Guoliang (legal representative) Chen Yuhui (chief accountant) Zhang
Xiaoyin (Chief Financial Officer) and Lin Xiaojia (head of the accounting
department) (accounting officer) declare that the financial reports in this semi-
annual report are true accurate and complete.All directors attended the meeting of Board of Directors at which the semi-
annual report was reviewed.The Company has planned not to distribute cash dividends give away bonus
shares or increase share capital by capital reserves.Any forward-looking statements in this semi-annual report including future
plans do not constitute a material commitment of the Company to investors.Investors are kindly requested to pay attention to investment risks.The semi-annual report is prepared in Chinese and English respectively. In
case of any ambiguity between the two versions the Chinese version shall
prevail. Investors are advised to read the full text of this semi-annual report
carefully.
2Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Table of Contents
Section I Important contents and definitions ........ 2
Section II Company profile and key financial indic... 6
Section III Management discussion and analysis ...... 9
Section IV Corporate governance .................... 24
Section V Environmental and social responsibilitie.. 26
Section VI Important matters ....................... 28
Section VII Changes in shares and shareholders ..... 34
Section VIII Preferred shares ...................... 40
Section IX Bonds ................................... 41
Section X Financial report ......................... 42
3Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
List of documents for inspection
I. Original of the 2024 semi-annual report bearing the signature of the Company's legal
representative.II. Financial statements signed and stamped by the Company's Legal Representative Chief
Accountant Chief Financial Officer and Head of the Finance Department (Accounting Officer).III. 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: the Office of the Company's Board of Directors.
4Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Interpretation
Item Refer to Content
Company the Company Shenzhen Nanshan Power and
Refer to Shenzhen Nanshan Power Co. Ltd.listed company
New Power Company Refer to Shenzhen New Power Industrial Co. Ltd.Shenzhen Nanshan Power Zhongshan Company
Refer to Shenzhen Nanshan Power (Zhongshan) Power Co. Ltd.Zhongshan Nanlang Power Plant
Shenzhen Nanshan Power Gas Turbine Engineering
Shenzhen Nanshan Power Engineering Company Refer to
Technology (Shenzhen) Co. Ltd.Shenzhen Nanshan Power Environmental Protection Shenzhen Nanshan Power Environmental Protection
Refer to
Company (Shenzhen) Co. Ltd.Xiefu Company Refer to Shenzhen Xiefu Energy Co. Ltd.Shenzhen Nanshan Power Co. Ltd. Nanshan Power
Nanshan Power Plant Refer to
Plant
Except for the specially described currency units the
RMB RMB 10000 RMB 100000000 Refer to remaining currency units are RMB RMB 10000 and
RMB 100000000
Reporting period Refer to From January 1 2024 to June 30 2024
5Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Section II Company profile and key financial indicators
I. Company profile
Shenzhen Nanshan Power A Shenzhen
Stock abbreviation Stock code 000037200037
Nanshan Power B
Stock exchange Shenzhen Stock Exchange
Name in Chinese Shenzhen Nanshan Power Co. Ltd.Chinese abbreviation of the Company
Shenzhen Nanshan Power
(if any)
Name in English (if any) Shenzhen Nanshan Power Co. Ltd.Legal representative of the Company Kong Guoliang
II. Contact person and contact details
Secretary of the Board of Directors Securities representative
Name Zou Yi
16/F-17/F Hantang Building OCT Nanshan District
Contact address
Shenzhen Guangdong Province
Tel. 0755-26003611
Fax 0755-26003684
E-mail investor@nspower.com.cn
III. Other information
1. Contact information of the Company
Whether the Company's registered address office address postal code website e-mail address etc. have changed during the
reporting period
□Applicable □Not applicable
The Company's registered address office address and postal code website and e-mail address have not changed during the
reporting period. For details please refer to the 2023 Annual Report.
2. Place of information disclosure and provision
Whether the place of information disclosure and provision has changed during the reporting period
□Applicable □Not applicable
6Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
The website of stock exchange and the name and URL of the media where the Company discloses its semi-annual report and the
place of provision of the Company's semi-annual report have not changed during the reporting period. For details please refer to
the 2023 Annual Report.
3. Other relevant information
Whether other relevant information has changed in the reporting period
□Applicable □Not applicable
IV. Key accounting data and financial indicators
Whether the Company needs to retroactively adjust or restate the accounting data of previous years
□Yes □No
Reporting period Same period last year Changes YoY
Operating revenue (RMB) 187904264.71 271268185.05 -30.73%
Net profit attributable to shareholders of listed
-37851109.90-37240739.56-1.64%
companies (RMB)
Net profit attributable to shareholders of listed
companies after deducting non-recurring profit or -44760057.08 -54877330.63 18.44%
loss (RMB)
Net cash flows from operating activities (RMB) -52996491.43 -57016489.54 7.05%
Basic earnings per share (RMB/share) -0.0628 -0.0618 -1.62%
Diluted earnings per share (RMB/share) -0.0628 -0.0618 -1.62%
weighted average rate of return on net assets -2.63% -2.59% -0.04pct
At the end of the At the end of the
Changes YoY
reporting period previous year
Total assets (RMB) 2152674345.54 2049365388.69 5.04%
Net assets attributable to shareholders of listed
1422924430.501459288691.94-2.49%
companies (RMB)
V. 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.
7Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
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.VI. Non-recurring profit or loss items and amounts
□Applicable □Not applicable
Unit: RMB
Item Amount Remark
Profit or loss on disposal of non-current assets (including Mainly due to the disposal profit or
-108730.90
write-off of provision for asset impairment) loss from fixed assets.Government subsidies included in the current profit or
loss (except for those that are closely related to the
Company's normal business operations comply with Mainly due to the government
439079.24
national policies and regulations are enjoyed according subsidies related to income.to determined standards and have a sustained impact on
the Company's profit or loss)
Profit or loss from changes in fair value of financial
assets and liabilities held by non-financial enterprises and
profit or loss from the disposal of financial assets and Mainly investment income obtained
6510401.50
financial liabilities except for effective hedging from financial assets held for trading.operations related to the Company's normal business
operations
Other non-operating revenue and expenses other than the Mainly due to housing demolition and
75461.40
above resettlement subsidies.Less: income tax impact 0.00
Changes in the amount of minority interests (after tax) 7264.06
Total 6908947.18
Details of other profit or loss that meet the definition of non-recurring profit or loss:
□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.
8Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Section III Management discussion and analysis
I. Main business engaged in by the Company during the reporting period
The Company shall comply with the disclosure requirements for "power supply industry" as set out in "Self-Regulation and
Supervision Guidelines No. 3 for Shenzhen Stock Exchange-Listed Companies - Industry Information Disclosure ".According to the data released by China Electricity Council in 1H24 the national electricity consumption of the whole society
was 4.66 trillion kWh with a YoY increase of 8.1% and the growth rate of 3.1 percentage points higher than that of the same
period last year. In terms of industries the electricity consumption of the primary industry in the first half of the year was 62.3
billion KWH accounting for 1.3% of the electricity consumption of the whole society with a YoY increase of 8.8%; The
electricity consumption of the secondary industry in the first half of the year was 3.07 trillion kWh with a YoY increase of 6.9%;
The electricity consumption of the tertiary industry in the first half of the year was 852.5 billion KWH with a YoY increase of
11.7%; In the first half of the year the domestic electricity consumption of urban and rural residents was 675.7 billion KWH with
a YoY increase of 9.0%. In the first half of the year the industrial power generation above the designated size increased by 5.2%
YoY of which the solar power/hydropower/wind power/thermal power/nuclear power generation of power plants above the
designated size increased by 27.1%/21.4%/6.9%/1.7%/0.1% YoY respectively. In the second quarter due to a YoY increase in
precipitation and the low base in the same period last year the hydropower generation in April/May/June increased by
21.0%/38.6%/44.5% YoY respectively. In the first half of the year the total non-fossil energy power generation increased by
293.5 billion KWH YoY accounting for 84.2% of the YoY increase in China's total electricity consumption during the same
period highlighting the significant progress in the power industry's green and low-carbon transition.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 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 (YNDLH [2023] No. 672) 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 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 related assets of the power generating units have been in the public listing and transfer process. During the
reporting period the Company conscientiously implemented the relevant requirements of the competent government departments
at all levels on energy and power security and supply took effective measures and made every effort to ensure the safety and
reliability of power production providing a strong power guarantee for economic and social development. The Company's
subsidiary Nanshan Power Plant has completed a total of 222223000 kWh of on-grid energy and 284312000 kWh of settlement
contract energy; The power sales business of the Company's subsidiary Shenzhen Nanshan Power Environmental Protection
Company has contributed a total of 6941300 kWh of energy for agent users.During the reporting period the Company insisted on combining market-oriented direction with optimizing industrial layout
combining work safety with innovative development combining cost control with management efficiency improvement
combining problem-orientation with goal-orientation taking deepening reform as a breakthrough point stimulating its own vitality
while increasing pressure to forge ahead and effectively promoting various tasks to achieve phased results. Firstly always
maintain strategic focus and unswervingly move forward in the direction of strategic transformation in the new energy industry
9Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
and energy storage. In 1H24 the Company focused on the strategic direction and completed the first phase of the Shenzhen New
Energy Storage Industry Equity Fund with a contribution of RMB 50 million; additionally the Company continued to promote the
land acquisition and storage of Shenzhen Nanshan Power Zhongshan Company and the disposal of generating unit assets deeply
tapped its own resource endowment advantages broke through many obstacles actively coordinated and fully promoted the
cooperation with the local government of Cuiheng New District Zhongshan City resulting in the implementation of the 300
MW/600 MWh Independent Energy Storage Power Station Project (Phase I) in Cuiheng New District Zhongshan City with the
estimated static investment of about RMB 303 million. This not only revitalized the line assets of Shenzhen Nanshan Power
Zhongshan Company but also expands the company's energy storage industry layout supporting Zhongshan City to establish a
low-carbon green demonstration park benchmark and build an energy storage industry ecosystem. Secondly Shenzhen Nanshan
Power Engineering Company actively created an organizational operation mode adapting to the market-oriented mechanism
established a new energy business department focused on the gas turbine and new energy related engineering service business
and successively signed relevant maintenance and test technical consulting service contracts; Meanwhile the training of technical
teams has been strengthened in a targeted manner and the qualification certificate of the license for undertaking the installation
maintenance and testing of power facilities has been obtained which provides a solid guarantee for meeting the management
requirements of the "construction operation management and maintenance" platform in the field of new energy and energy
storage and new business development. Thirdly Shenzhen Nanshan Power Environmental Protection Company takes integrated
energy service as the transformation and development direction comprehensively develops industrial and commercial energy
storage distributed photovoltaic charging pile and other integrated energy service projects and strives to create a new integrated
energy service business model. In the first half of the year the construction of the Zhaochi energy storage project was completed
and officially put into commercial operation in April 2024; moreover Shenzhen Nanshan Power Environmental Protection
Company was successfully included in the List of Electricity Sales Companies in Guangdong Province in January 2024 and
signed power sales contracts with 4 clients. In the first half of the year the total power of the agent users was 6941300 kWh
which added a new profit growth driver for the Company. Fourthly Xiefu Company mobilized all levels to carry out the property
lease management service business of Shenzhen Energy Corporation. In the first half of the year the overall rental rate of the real
estate business reached 60% and the market development ability property management ability and profitability were greatly
improved.During the reporting period the Company actively advocated and deeply practiced the concept of fine management optimized
management effectiveness and actively implemented cost reduction and efficiency improvement with innovative thinking and
initiative to ensure that various measures achieved actual results. Firstly strive to maximize the benefits of capacity tariff.Thoroughly study the latest capacity tariff policy fully tap the benefit potential under the capacity tariff model and actively strive
for capacity tariff income. Secondly scientifically coordinate gas-electricity matching. In the face of the contradiction between the
uncertainty of unit clearing and the certainty of natural gas contract volume as well as the challenge of single gas source mode the
Company strengthened overall planning and coordination adjusted the power marketing and fuel procurement strategies according
to the dynamic changes in the market situation scientifically reasonably and flexibly coordinated the gas-electricity matching and
made every effort to coordinate to avoid the penalty of high natural gas contract volume as much as possible and greatly improved
the marginal contribution of power business. Thirdly tap the potential of economic operation in an all-round way. Through the
implementation of maintenance and technical transformation projects and in-depth technical research the performance and
operation mode of unit equipment are continuously optimized and the normalized management measures for the economic
operation of production equipment in terms of power saving water saving and gas saving are continuously strengthened so as to
achieve the maximum cost reduction and efficiency increase open source and water saving and save production costs. Fourthly
vigorously carry out the construction of process standardization system. Actively build an internal process system framework
form 14 categories of main processes 90 functional processes and 218 business operation processes and complete the
standardization of core business processes to help the Company achieve standardized process-oriented and refined management.
10Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
II. Core competitiveness analysis
In recent years affected by the macroeconomic situation and common problems in the gas turbine power generation industry the
Company's primary business is facing increasing difficulties and challenges. However the basic core competitiveness formed by
more than 30 years of operation and development and the strong support of the Company's major shareholders as well as the
innovative management measures taken by the Board of Directors and management team have laid the necessary foundation for
the Company's continued operations and pursuit of transformation and development. During the reporting period the Company
closely focused on the core task of high-quality party building to lead high-quality development anchored the two major goals of
operation and development and adhered to the management principles of standardization science pragmatism efficiency
fairness and justice and performed various tasks in a down-to-earth manner. These initiatives have fully promoted the Company's
overall development further consolidating and enhancing the Company's 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. At
the same time the Company attaches great importance to and vigorously promotes the construction of institutional system
management system and compliance systems. It adheres to standardized management in a legal scientific and rigorous efficient
and orderly manner. Through refined and standardized management orientation a good foundation has been laid for the Company
to deeply explore internal potential and actively seek 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
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 Shenzhen Nanshan Power
Engineering Company also provides professional services such as technical consultation commissioning and operation guarantee
for dozens of domestic and overseas gas turbine power stations; the Company has successively undertaken technical personnel
training services for dozens of power plants at home and abroad and has become a well-known professional talent training base in
the domestic gas turbine industry establishing a good reputation and professional brand image in the peer group.
3. A level of expertise that is up to date. The Company has a number of invention patents utility model patents and software
copyrights and jointly drafted and prepared 1 national standard. On December 23 2021 the Company obtained the national high-
tech enterprise certificate. This year the Company is actively organizing the national high-tech enterprise review and identification
work. In recent years the Company has continued to increase R&D efforts to promote the Company to implement innovation-
driven development and the scientific research and innovation work has been unanimously affirmed by the society. 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 to accumulate experience in the
construction and operation of new energy industries such as electrochemical energy storage photovoltaic and charging pile and
actively develop comprehensive energy business. Through the preliminary work of independent energy storage power stations and
the construction and operation of photovoltaic projects the Company has accumulated certain experience in the preliminary
preparation construction commissioning operation and maintenance of energy storage projects and has trained a group of
11Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
professionals. The rich talent pool and technological advantages in the traditional power industry enable the Company to tap its
potential and have laid a solid technology and talents foundation for the Company to enter the new energy service field
5. Leading environmental protection level. The Company's subordinate power plants all use gas-fired power generation units
adopting natural gas as fuel and the CO2 emission in the flue gas is about 42% of that of the coal-fired power plants providing
strong support for the national "double carbon" (carbon peaking and carbon neutrality) construction According to the
requirements of the "2018 'Shenzhen Blue' Sustainable Action Plan" of the Shenzhen Municipal People's Government the
Company has fully completed the "Shenzhen Blue" transformation of #3 #10 and #1 gas turbines of Nanshan Power Plant. After
the transformation the nitrogen oxides emissions of each unit have been reduced to less than 15mg/m3 reaching the world's most
advanced level. Nanshan Power Plant was also selected as the best power plant of the Top Plant Award by Power Magazine the
most authoritative magazine in the global power industry founded in 1882.III. Primary business analysis
Overview
Please refer to the relevant contents of "I. Main businesses engaged in by the Company during the reporting period".Changes YoY in key financial data
Unit: RMB
Changes
Reporting period Same period last year Reasons for changes
YoY
Mainly because Shenzhen Nanshan
Power Zhongshan Company no
longer engaged in power production
and sales business due to shutdown
Operating revenue 187904264.71 271268185.05 -30.73%
units and land acquisition and storage
in the current period resulting in a
decrease in the operating revenue on a
year-on-year basis.Mainly because Shenzhen Nanshan
Power Zhongshan Company no
longer engaged in power production
and sales business due to shutdown
Operating costs 180350403.95 285367929.90 -36.80%
units and land acquisition and storage
in the current period resulting in a
decrease in the operating costs on a
year-on-year basis
Mainly due to the Company's
continued efforts to strengthen project
development and vigorously
Selling and distribution expansion of its business in the field
1609144.89897707.8279.25%
expenses of integrated energy service resulting
in an increase in the selling and
distribution expenses on a year-on-
year basis
G&A expenses 36646293.91 34513202.72 6.18%
Mainly due to the Company's
Financial expenses 5742174.61 6730365.12 -14.68% optimization of the asset and liability
structure and continued reduction of
financing costs resulting in a
12Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
decrease in the financial expenses on
a year-on-year basis.The Company has not incurred
Income tax expenses 0.00 479.55 -100.00% income tax expenses in the current
period.Mainly due to the Company's
increased investment in R&D
R&D investment 15116862.75 13297926.31 13.68%
projects which resulted in a YoY
increase in R&D expenses.Net cash flows from
-52996491.43-57016489.547.05%
operating activities
Mainly due to the new investment in
Shenzhen New Energy Storage
Industry Equity Fund in the current
Net cash flows from period the YoY increase in the
-29435927.80262106770.11-111.23%
investing activities trading financial products purchased
with existing funds and the YoY
decrease in the net cash flows from
investing activities.Mainly due to the Company's
optimization of its asset and liability
structure the cash paid for debt
Net cash flows from repayment decreased year-on-year
81386462.47-592949390.25113.73%
financing activities during the current period resulting in
an increase in the net cash flows from
financing activities on a year-on-year
basis.Mainly due to the Company's
optimization of its asset and liability
structure resulting in a decrease in
Net increase in cash the cash paid for debt repayment in
-1008351.65-387622035.7199.74%
equivalents the current period on a year-on-year
basis and an increase in the net
increase in cash and cash equivalents
on a year-on-year basis.Major changes in the Company's profit composition or profit sources during the reporting period
□Applicable □Not applicable
There were no major changes in the profit composition or profit source of the Company during the reporting period.Composition of operating revenue
Unit: RMB
Reporting period Same period last year
Changes YoY
Proportion to Proportion to
Amount Amount
operating revenue operating revenue
Total operating
187904264.71100%271268185.05100%-30.73%
revenue
13Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
By sector
Power industry 187206813.92 99.63% 270628454.23 99.76% -30.83%
Others 697450.79 0.37% 639730.82 0.24% 9.02%
Total 187904264.71 100.00% 271268185.05 100.00% -30.73%
By product
Power production
182701860.9797.23%260794861.2096.14%-29.94%
and sale
Integrated energy
18756095.689.98%19368926.997.14%-3.16%
service
Others 697450.79 0.37% 639730.82 0.24% 9.02%
Consolidation
-14251142.73-7.58%-9535333.96-3.52%-49.46%
offset
Total 187904264.71 100.00% 271268185.05 100.00% -30.73%
By region
Domestic 187904264.71 100.00% 271268185.05 100.00% -30.73%
Total 187904264.71 100.00% 271268185.05 100.00% -30.73%
Industries products or regions that account for more than 10% of the Company's operating revenue or operating profit
□Applicable □Not applicable
Unit: RMB
Changes YoY Changes YoY
operating Changes YoY
operating costs gross margin in operating in operating
revenue in gross margin
revenue costs
By sector
Power industry 187206813.92 180267125.57 3.71% -30.83% -36.81% 9.12%
Others 697450.79 83278.38 88.06% 9.02% -16.19% 3.59%
Total 187904264.71 180350403.95 4.02% -30.73% -36.80% 9.22%
By product
Power
production and 182701860.97 181148653.86 0.85% -29.94% -35.59% 8.70%
sale
14Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Integrated
18756095.6811858462.9036.78%-3.16%-11.58%6.02%
energy service
Others 697450.79 83278.38 88.06% 9.02% -16.19% 3.59%
Consolidation
-14251142.73-12739991.19-49.46%-35.43%
offset
Total 187904264.71 180350403.95 4.02% -30.73% -36.80% 9.22%
By region
Domestic 187904264.71 180350403.95 4.02% -30.73% -36.80% 9.22%
Total 187904264.71 180350403.95 4.02% -30.73% -36.80% 9.22%
Under the circumstances that the calculation method of the Company's main business data is adjusted during the reporting period
the Company's main business data for the latest period is adjusted according to the calculation method at the end of the reporting
period
□Applicable □Not applicable
IV. Non-primary business analysis
□Applicable □Not applicable
Unit: RMB
Ratio in
Amount Explanation of causes Sustainability
total profit
Mainly investment income and
dividend income obtained from
Recognized investment
financial assets held for trading
income accounted for
Investment income 9007609.64 -22.15% as well as investment income
under the equity
accounted for under the equity
method is sustainable.method and recognized by joint-
stock companies.Mainly due to housing demolition
Non-operating revenue 75461.40 -0.19% No
and resettlement subsidies.Non-operating Mainly due to the loss of fixed
108730.90 -0.27% No
expenses assets.V. Analysis of assets and liabilities
1. Major changes in asset composition
Unit: RMB
At the end of the reporting Description of significant
At the end of last year Increase or
period decrease in changes
15Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
proportion
Ratio of Ratio of
Amount total Amount total
assets assets
Monetary funds 312526567.91 14.52% 316188782.49 15.43% -0.91%
Accounts
118860740.605.52%111975251.105.46%0.06%
receivable
Contract assets 0.00% 88000.00 0.00% 0.00%
Inventories 83727533.35 3.89% 86158251.16 4.20% -0.31%
Investment
1581288.220.07%1664566.600.08%-0.01%
properties
Long-term
equity 91619964.42 4.26% 90001176.04 4.39% -0.13%
investments
Fixed assets 572547386.78 26.60% 571482734.35 27.89% -1.29%
Construction in
2488051.210.12%3448855.100.17%-0.05%
progress
Right-of-use
8334145.330.39%2266946.420.11%0.28%
assets
Short-term
470944226.8821.88%341237886.7216.65%5.23%
borrowings
Contract
119549.510.01%0.000.00%0.01%
liabilities
Long-term
0.00%58829426.302.87%-2.87%
borrowings
Lease liabilities 4640491.00 0.22% 0.00 0.00% 0.22%
Financial assets
273000000.0012.68%226000000.0011.03%1.65%
held for trading
Other current
287836740.7913.37%232865968.6311.36%2.01%
assets
Other
investments in
350615000.0016.29%300615000.0014.67%1.62%
equity
instruments
2. Main overseas assets
□Applicable □ Not applicable
16Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
3. Assets and liabilities measured at fair value
□Applicable □Not applicable
Unit: RMB
Prov
Profit
ision
or loss Cumu
for
from lative Ot
imp
chang fair he
airm
es in value Purchase Sales amount r
beginning ent
Item fair chang amount of the the current ch ending balance
balance of
value es current period period an
the
of the includ ge
curr
curren ed in s
ent
t equity
peri
period
od
Financial assets
1. Financial assets
held for trading
(excluding 226000000.00 454000000.00 407000000.00 273000000.00
derivative
financial assets)
2. Derivative
financial assets
3. Other debt
investments
4. Other
investments in 300615000.00 50000000.00 350615000.00
equity instruments
Total 526615000.00 504000000.00 407000000.00 623615000.00
Financial
0.000.000.000.00
liabilities
Other changes
Whether there are significant changes in the measurement attributes of the Company's main assets during the reporting period
□Yes □No
4. Restrictions on asset rights as of the end of the reporting period
Item Ending balance (RMB) Ending balance of previous year (RMB)
L/G deposit 2800000.00 5453862.93
Total 2800000.00 5453862.93
17Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
VI. 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)
50000000.000.00100.00%
2. Major equity investments acquired during the reporting period
□Applicable □Not applicable
Unit: RMB
Profit
or
Progr loss
Date
ess as of Litig
Nam Inves Inves Share Inves Expe of Disclos
Sourc Prod of the inves ation
e of Main tment tment holdi Partn tment cted discl ure
es of uct balan tment invol
inves business meth amou ng er perio earni osure index
funds type ce in the ved
tee od nt ratio d ngs (if (if any)
sheet curre or not
any)
date nt
perio
d
Use private The
equity inves
funds to tment
Shen
Shen engage in perio
zhen
zhen equity d of
Capit
New investment the
al
Ener s Partn
Holdi
gy investment ershi
ngs Octo
Stora manageme Not p is
Co. ber
ge nt asset avail ten Annou
Ltd. 18
Indus manageme able years ncemen
Shen Inves 2023;
try nt and due Self- count t No.:
1000 zhen ted Not Febru
Equit other to 1.54 owne ing 2023-
0000 Long Fund 5000 appli 0.00 No ary
y activities short % d from 039;
0.00 hua 0000 cable 23
Fund (operating establ funds the 2024-
Indus .00 2024
Partn activities ishm date 012、
trial Marc
ershi can only be ent when 014
Capit h 19
p carried out time the
al 2024
(Limi after initial
Inves
ted registering capit
tment
Partn with the al
Co.ershi Asset contri
Ltd.p) Manageme butio
etc.nt n is
Associatio recei
n of China) ved.
1000
Total -- -- 0000 -- -- -- -- -- -- -- 0.00 -- -- --
0.00
18Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
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
The Company has not used the raised funds during the reporting period.VII. Sale of major assets and equity
1. Sale of major assets
□Applicable □Not applicable
Whet
her it
Net is
profit imple
contri ment
buted ed as
by plann
the ed
asset Ratio Relat
Whet and
to the of net ionsh
her Whet as
listed profit ip
have her sched
comp contri with
Trans all all uled.any buted Whet the
actio the the If it
from by her it count
n Impact of Pricing prope claim is not
the asset is erpart
Coun Date price the sale on princip rty s and imple Discl disclo
Asset begin sales relate y
terpar of s the les of rights debts ment osure sure
s sold ning to the d (appli
ty sale (RM Company asset of the invol ed as date index
of the listed trans cable
B (Note 3) sale assets ved plann
curre comp actio to
1000 invol have ed
nt any ns relate
0) ved been the
perio in the d
been transf reaso
d to total trans
transf erred ns
the net actio
erred and
date profit ns) the
of meas
sale ures
(RM the
B Com
1000 pany
0) has
taken
shoul
19Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
d be
expla
ined.This land
acquisition
Shen and storage
zhen matter may
Nans revitalize It is
han the based
Powe Company's on the
r assets in Asset
Zhon stock Apprai
gshan improve sal
Com the Report
pany Company's issued
has cash flows by
three reduce the Guang
Nove
Zhon state- Company's dong
mber
gshan owne operating Zhixin
8 Anno
Cuih d pressure Land
Dece unce
eng land and enable and
mber ment
New use the Real Non-
Dece 15 No.:
Distri right Company Estate relate Not
mber 5844 0.00 and 2023-
ct locat 0 to better Apprai No d No appli Yes
12 5.35 % Dece 048
Mana ed in focus on sal Co. partie cable
2023 mber 052
geme Heng transforma Ltd. s
20053;
nt men tion and (YZXP
2023;2024-
Com Indus developme BZ No.April 027。
mitte trial nt. This is [2023]
13
e Zone in line with 1175)
2024
Nanl the and
ang Company's determi
Street strategic ned
developme after
Cuih nt plan consult
eng and will ation
New have no betwee
Distri major n the
ct impact on two
Zhon the parties.gshan Company's
City production
and
operations.
2. Sale of major equity interests
□Applicable □ Not applicable
VIII. Analysis of major holding and shareholding companies
□Applicable □Not applicable
Information about major subsidiary and joint-stock companies that affect the Company's net profit by more than 10%
Unit: RMB 10000
Com
Company registered operating operating
pany Main business total assets net assets net profit
name capital revenue profit
type
20Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Technology
development for
waste heat
utilization
(excluding
restricted
Shenzhen
projects); RMB
New Power subsi
electricity 113.85 6695.70 1265.69 9925.56 -1966.26 -1966.26
Industrial diary
generation million
Co. Ltd.through waste
heat utilization;
electricity
generation
through gas
turbines.Gas turbine power
generation waste
heat power
generation power
supply and
heating lease of
terminals oil
depots (excluding
Shenzhen
refined oil
Nanshan
excluding
Power subsi RMB 746.8
hazardous 26036.67 -54137.67 1103.35 -938.03 -938.03
(Zhongsha diary million
chemicals
n) Power
excluding
Co. Ltd.flammable and
explosive
materials) and
power equipment
facilities; Land
use rights lease;
Nonresidential
real estate lease.Technical
consulting
services of
construction
engineering for
gas-steam
combined cycle
power plant
(stations)
Shenzhen maintenance and
Nanshan overhaul of
Power Gas operating
Turbine
subsi equipment for RMB 10
Engineerin
diary gas-steam
6989.123133.961837.39-419.43-419.43
million
g combined cycle
Technology power plant
(Shenzhen) (stations);
Co. Ltd. Engineering
management
services technical
services of
engineering
power generation
solar power
generation and
energy storage as
well as repairs of
21Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
electrical
equipment and
general
equipment etc.Situation of acquiring and disposing subsidiary during the reporting period
□Applicable □ Not applicable
Notes to main holding and shareholding companies
IX. Structured entities controlled by the Company
□Applicable □ Not applicable
X. Risks faced by the Company and countermeasures
1. Primary business: Since 2024 affected by multiple factors the annual medium- and long-term contract prices of the Company's
Nanshan Power Plant have dropped significantly. At the same time with the official commencement of the Guangdong Province's
spot power market the 9E unit faces profitability difficulties in competing with more efficient and cost-effective units. As a result
the Company's main business continues to face severe operational difficulties. 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. Simultaneously the Company will
prioritize integrated energy services actively investigating diverse business models and opportunities to transition from a
traditional power generation entity to a comprehensive energy service provider. These efforts aim to foster favorable conditions for
the Company's sustained operations and robust growth.
2. Safety management: Under the market-oriented power production model power plants will face more flexible scheduling
methods and stricter assessment policies which put forward higher requirements for the operation and maintenance of 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: The Company's natural gas procurement price mainly depends on changes in the international fuel market
and the sales price of the Company's existing suppliers. In 1H24 as the spot price of natural gas declined the Company's natural
gas procurement cost decreased YoY. However due to the breakdown or overhaul of transmission and distribution capacity of
some natural gas transmission and distribution facilities strong seasonal demand caused by rising temperatures and still existing
geopolitical influences the spot price of natural gas began to rise from May. In addition the Company's gas source pattern has
changed fundamentally from dual gas sources to single gas sources. The simplification of gas sources has had a negative impact on
the stability of gas supply the flexibility of gas volume coordination and the economy of gas prices. At the same time the
operation of electricity spot trading rules and the implementation of capacity price policies have put forward higher requirements
for the stability and flexibility of natural gas supply. 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.
22Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
4. In terms of Land of Nanshan Power Plant: In June 2023 the Company learned about the Notice of Shenzhen Municipal Bureau
of Planning and Natural Resources on the Issuance of the Shenzhen 2023 Urban Renewal and Land Preparation Plan on the
official website of Shenzhen Municipal Bureau of Planning and Natural Resources and according to the relevant content in its
schedule the Shenzhen 2023 Urban Renewal and Land Preparation Plan still includes the land acquisition and storage of Nanshan
Power Plant the Company's subsidiary and related content. 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.XI. 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
23Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Section IV Corporate governance
I. Relevant information of the annual general meeting and extraordinary general meeting
held during the reporting period
1. Information on the General Meeting during the reporting period
Investor
Session Type participati Convening date Disclosure date Resolution
on ratio
Deliberated and approved the
Proposal on Revising the Articles of
Association of Shenzhen Nanshan
The First
Power Co. Ltd. the Proposal on
Extraordinary Extraordinary
Revising the Rules of Procedure of
General General 38.31% January 9 2024 January 9 2024
the Board of Directors of Shenzhen
Meeting for Meeting
Nanshan Power Co. Ltd. and the
2024
Proposal on Revising the Working
System of Independent Directors of
Shenzhen Nanshan Power Co. Ltd.Deliberated and approved the
The Second Proposal on the Listing and
Extraordinary Extraordinary Transfer of the Assets Related to the
February 26
General General 38.32% February 26 2024 Generator Units and Heavy Oil
2024
Meeting for Meeting Treatment Line of the Company's
2024 Held Subsidiary Shenzhen Nanshan
Power (Zhongshan) Power Co. Ltd.Deliberated and approved seven
proposals including the 2023 Work
2023 Annual Annual
Report of the Board of Directors
General General 38.34% May 8 2024 May 8 2024
the 2023 Work Report of the Board
Meeting Meeting
of Supervisors the 2023 Annual
Report and the summary.Deliberated and approved four
proposals including the Proposal
on the Change of Board of
The Third
Directors and the Election of Non-
Extraordinary Extraordinary
Independent Directors of the Tenth
General General 38.33% June 20 2024 June 20 2024
Board of Directors and the
Meeting for Meeting
Proposal on the Change of Board of
2024
Directors and the Election of
Independent Directors of the Tenth
Board of Directors
2. Preferred shareholders whose voting rights have been restored request the convening of an
Extraordinary General Meeting of Shareholders
□Applicable □ Not applicable
II. Changes in the Company's directors supervisors and senior officers
□Applicable □Not applicable
24Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Name Position held Type Date Reason
Election at expiration
Chen Yedong Director Elected June 20 2024
of term
Election at expiration
Ning Jie Independent director Elected June 20 2024
of term
Election at expiration
Zhang Ming Supervisor Elected June 20 2024
of term
Election at expiration
Yu Haiyong Supervisor Elected June 20 2024
of term
Resignation upon
Sun Huirong Director June 20 2024 Change of term
expiration of term
Resignation upon
Chen Zetong Independent director June 20 2024 Change of term
expiration of term
Resignation upon
Li Caijun Supervisor June 20 2024 Change of term
expiration of term
Resignation upon
Liao Junkai Supervisor June 20 2024 Change of term
expiration of term
III. Profit distribution and conversion of capital reserves into share capital during the
reporting period
□Applicable □ Not applicable
The Company has planned not to distribute cash dividends bonus shares or convert capital reserves into share capital in the half
year.IV. Implementation of the Company's equity incentive plans employee stock ownership
plans 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.
25Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Section V Environmental and social responsibilities
I. Major environmentalprotection 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. Meanwhile its affiliate
Nanshan Power Plant strictly controls nitrogen oxide emissions in accordance with the relevant requirements of the 2018
"Shenzhen Blue" Sustainable Action Plan.
2. Administrative licenses for environmental protection
The Company's affiliate Nanshan Power Plant has obtained the pollutant discharge license issued by Nanshan Administration
Bureau of the Bureau of Ecology and Environment of Shenzhen City with the license No. 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 pollutant n Total approve Excessiv
Compan Emissio of ion of emission
s and s and concentr emission d e
y or n mode discharg discharg standard
specific specific ation/int s emission emission
subsidiar e outlets e outlets s
pollutant pollutant ensity s
y
s s
Concentr "Shenzh
Shenzhe Inside
ated en Blue"
n the
Nitrogen Nitrogen emission <15 emission 20.97 704.25
Nanshan 3 Nanshan None
oxides oxides of boiler standard tons tons
Power Power mg/m3
and <15mg/
Co. Ltd. Plant
chimney m3
4. Treatment of pollutants
Shenzhen Nanshan Power Co. Ltd. has 3 sets of 9E units with 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. Information on investment in environmental governance and protection and payment of environmental protection tax
26Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
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.
7. Environmental self-monitoring plan
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.
8. Administrative penalties for environmental issues during the reporting period
None
9. Other environmental information that shall be disclosed
None
10. Measures taken to reduce its carbon emissions during the reporting period and their effects
□Applicable □Not applicable
During the reporting period the Power Plant affiliated to the Company continuously improved the efficiency of units and reduced
carbon emissions by adopting technical transformation measures such as unit boiler flue gas monitoring system and gas turbine oil
fume fan system.
11. Other environmental protection related information
None
12. Information on environmental accidents occurring in the listed company
None
The Company shall comply with the disclosure requirements for "power supply industry" as set out in "Self-Regulation and
Supervision Guidelines No. 3 for Shenzhen Stock Exchange-Listed Companies - Industry Information Disclosure ".II. Social responsibilities
In 1H24 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
attached great importance to work safety by identifying the main disparities. We vigorously promoted the improvement of
employees' safety responsibility awareness and safety skills effectively enhanced their work initiative and maintained the "Five
Nos" goal of 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.
27Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Section VI Important matters
I. Commitments made by the Company's actual controller shareholders related parties
acquirers the Company and other related parties that have been fulfilled within the
reporting period and those that have not been fulfilled within the time limit as of the end of
the reporting period
□Applicable □ Not applicable
During the reporting period there were no commitments that were made by the actual controllers shareholders related parties
acquirers and other related parties of the Company to be fulfilled during the reporting period but failed to be fulfilled as of the end
of the reporting period.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. Appointment and dismissal of accounting firms
Whether the semi-annual report has been audited.□Yes □ No
The Company's semi-annual report has not been audited.V. Explanation of the Board of Directors and the Board of Supervisors on the "modified
report" of the accounting firm during the Reporting Period
□Applicable □ Not applicable
VI. Explanation of the Board of Directors on the "modified report" of the previous year
□Applicable □ Not applicable
VII. Bankruptcy and restructuring related matters
□Applicable □ Not applicable
The Company had no bankruptcy or reorganization related matters during the reporting period.VIII. Litigation
Major litigation and arbitration matters
28Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
□Applicable □ Not applicable
The Company had no major litigation or arbitration matters during the reporting period.Other litigation events
□Applicable □Not applicable
Results and
Basic Whether Execution
Amount influence of
information to form Proceedings of of litigation Disclosure disclosure
involved litigation
of litigation estimated litigation (arbitration) (arbitration) date index
(RMB10000) (arbitration)
(arbitration) liabilities judgment
trial
Other
litigation that Failure to
does not meet In the stages of case No meet the
Not
the disclosure 502.95 No filing and trial significant -- special
applicable
standards for respectively impact disclosure
major standards
litigation
IX. Penalties and rectification
□Applicable □Not applicable
The Company had no penalties or rectifications during the reporting period.X. Integrity status of the Company and its controlling shareholders and actual controller
□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.XI. Major related transactions
1. Related transactions related to daily operations
□Applicable □Not applicable
Pricin Amou Propo Whet Availa
Appro Settle
g nt of rtion her ble
Type Detail Price ved ment
princi relate in the the marke
of s of of tradin metho
Relate ples d amou appro t price Disclo disclo
relatio relate relate relate g d of
d of transa nt of ved of sure sure
nship d d d quota relate
party relate ctions simila limit simila date index
transa transa transa (RMB d
d (RMB r is r
ctions ctions ctions 1000 transa
transa 1000 transa excee transa
0) ctions
ctions 0) ctions ded ctions
Provis Energ Anno
Shenz Relate ion of y Mont unce
hen d energ mana Not April Fair Marke hly ment
MTC legal y geme 30.91 0.15% 120 No applic 12 value t price settle on the
Co. perso mana nt able 2024 ment Estim
Ltd. n geme servic ated
nt es Daily
29Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
servic Relate
es to d
relate Trans
d action
perso s in
ns 2024
(Anno
unce
Artro
ment
n Art Purch
No.:
(Grou ase of
Relate 2024-
p) goods
d Purch Single Not 025)
Co. from Fair Marke
legal ase of 0.94 0.00% 20 No settle applic
Ltd. relate value t price
perso goods ment able
and d
n
its partie
subsid s
iaries
Provis
ion of
Techn
techni
Relate ical
cal
d transf Not Single Not Not Not
CAST servic Fair Marke
legal ormati 5.88 0.03% applic No settle applic applic applic
D es to value t price
perso on able ment able able able
relate
n servic
d
e
perso
ns
Total -- -- 37.73 -- 140 -- -- -- -- --
Details of large-amount sales
None
returns
1. In 2024 it is estimated that the daily related transactions with Shenzhen MTC Co. Ltd.
The actual performance during the will be RMB 1.2 million and the related transactions with Artron Art (Group) Co. Ltd. and
reporting period (if any) if the total its subsidiaries will be RMB 200000. The total amount of the daily related transactions
amount estimated by category of during the reporting period is within the scope of approval.the daily related transactions
expected to occur in the current 2. The Company's provision of technical transformation services for CASTD was not
period estimated at the beginning of 2024 and the total amount was small which did not meet the
special information disclosure standards.Reasons for large differences
between transaction prices and
Not applicable
market 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
Main Registered
Name of the Total assets Net assets of Net profit of
Co-investors relationship business of capital of the
investee of the the investee the investee
the investee investee investee (RMB (RMB
30Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
(RMB 10000) 10000)
10000)
Use private
equity funds
to engage in
equity
investments
Shenzhen investment
Capital management
Holdings Shenzhen asset
Co. Ltd. New Energy management
Shenzhen Storage and other
Yuanzhi Related legal Industry activities RMB 6.51
324550.07324550.07-677.09
Energy person Equity Fund (operating billion
Storage Partnership activities can
Private (Limited only be
Equity Fund Partnership) carried out
Management after
Co. Ltd. etc. registering
with the
Asset
Management
Association
of China)
Progress of major projects
under construction of the None
investee (if any)
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
The Company had no other major related transactions during the reporting period.
31Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
XII. 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.
(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. Entrusted wealth management
□Applicable □Not applicable
The Company had no entrusted wealth management during the reporting period.
4. Other major contracts
□Applicable □Not applicable
The Company had no other significant contracts during the reporting period.XIII. Explanation of other major matters
□Applicable □Not applicable
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 Equity 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 Announcement on the Progress of Investment in Shenzhen New Energy Storage Industry Equity Fund and
Related Transactions disclosed by the Company in the Securities Times and cninfo.com.cn Announcement No.: 2024-012 and 014)
In addition to the above matters the Company's land of Nanshan Power Plant-related matters and the refundable items of the
"Project Technical Transformation Benefit Fund" had no progress or change during the reporting period.
32Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
XIV. Major matters of the Company's subsidiaries
□Applicable □Not applicable
1. Land acquisition and storage matters of Shenzhen Nanshan Power Zhongshan Company: on April 10 2024 Shenzhen Nanshan
Power Zhongshan Company received the second payment of RMB 71336059 in the first phase of compensation. Up to now a
total of RMB 175336059 has been received accounting for 30.00% of the total compensation for land acquisition and storage.
(For details please refer to the Progress Announcement on Matters Related to Land Acquisition and Storage of the Held
Subsidiary Shenzhen Nanshan Power (Zhongshan) Power Co. Ltd. disclosed by the Company on the Securities Times and
cninfo.com.cn Announcement No.: 2024-027)
2. Matters related to listing and transfer of units of Shenzhen Nanshan Power Zhongshan Company: On February 6 and February
26 2024 the Company held the 23rd Extraordinary Meeting of the Ninth Board of Directors the 12th Extraordinary Meeting of
the Ninth Board of Supervisors and the 2024 2nd Extraordinary General Meeting respectively at which it reviewed and approved
the Proposal on Listing and Transfer of Assets Related to Generating Units and Heavy Oil Treatment Line of Shenzhen Nanshan
Power (Zhongshan) Power Co. Ltd. a held subsidiary of the Company and agreed to the listing and transfer of two generating
units and their auxiliary equipment heavy oil treatment line equipment and spare parts of Shenzhen Nanshan Power Zhongshan
Company on the Shenzhen United Property and Equity Exchange; On May 31 and June 20 2024 the Company held the 25th
Extraordinary Meeting of the Ninth Board of Directors the 14th Extraordinary Meeting of the Ninth Board of Supervisors and the
2024 3rd Extraordinary General Meeting at which it reviewed and approved the Proposal on Re-listing and Transfer of Assets
Related to Generating Units and Heavy Oil Treatment Line of Shenzhen Nanshan Power (Zhongshan) Power Co. Ltd. a held
subsidiary of the Company and agreed to the re-listing and transfer of two sets of generating units and their auxiliary equipment
heavy oil treatment line equipment and spare parts of Shenzhen Nanshan Power Zhongshan Company on the Shenzhen United
Property and Equity Exchange. So far the assets related to the generating units are in the process of public listing and transfer.
(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)
33Full Text of the Semi-Annual Report 2024 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
Issua
nce Providen
of Bonus t fund
Quantity Ratio Others Subtotal Quantity Ratio
new shares conversi
share on
s
I. Shares subject to
129940.0022%129940.0022%
selling restrictions
1. State
shareholding
2. State-owned legal
person shareholding
3. Other domestic
129940.0022%129940.0022%
shareholdings
Including: domestic
legal person
shareholding
Domestic natural
129940.0022%129940.0022%
person shareholding
4. Foreign
shareholding
Including: foreign
legal person
shareholding
Foreign natural
person shareholding
II. Shares without 6027496 6027496 99.9978
99.9978%
selling restrictions 02 02 %
1. RMB ordinary 3388951 3388951 56.2236
56.2236%
shares 56 56 %
2. Domestic-listed 2638544 2638544 43.7742
43.7742%
foreign shares 46 46 %
34Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
3. Overseas-listed
foreign shares
4. Others
III. Total number of 6027625 6027625
100.00%100.00%
shares 96 96
Reasons for changes in shares
□Applicable □ Not applicable
Approval status of changes in shares
□Applicable □ Not applicable
Transfer status of changes in shares
□Applicable □ Not applicable
Progress of implementation in share repurchase
□Applicable □Not applicable
Implementation progress of reducing and repurchasing shares through centralized bidding
□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
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
II. Issuance and listing of securities
□Applicable □Not applicable
III. Number of the Company's shareholders and shareholding status
Unit: Share
Total number of ordinary Total number of preferred shareholders
shareholders at the end of the 59801 whose voting right were restored at the end 0
reporting period of the reporting period (if any) (see Note 8)
Shareholding of ordinary shareholders or the top 10 ordinary shareholders holding more than 5% of the shares (excluding shares
lent through refinancing)
Name Nature of Sharehold Quantity of Increases Quantity Number of Pledge marking
35Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
sharehold ing ratio ordinary and of ordinary or freezing
er shares held at decreases ordinary shares without
the end of the during the shares restrictive
reporting reporting with conditions for
period period restrictive sales Share Quanti
conditions status ty
for sales
HONG KONG
Overseas Not
NAM HOI
legal 15.28% 92123248 0 0 92123248 applicab 0
(INTERNATIO
person le
NAL) LTD
Shenzhen State-
Not
Guangju owned
12.22% 73666824 0 0 73666824 applicab 0
Industrial Co. legal
le
Ltd. person
State-
Shenzhen Not
owned
Energy 10.80% 65106130 0 0 65106130 applicab 0
legal
Corporation le
person
Domestic Not
Zeng Ying natural 1.19% 7159600 0 0 7159600 applicab 0
person le
China
Merchants Overseas Not
Securities legal 0.90% 5402154 71300 0 5402154 applicab 0
(Hong Kong) person le
Co. Ltd.BOCI Overseas Not
SECURITIES legal 0.87% 5252215 -6269833 0 5252215 applicab 0
LIMITED person le
GUOTAI
JUNAN Overseas Not
SECURITIES( legal 0.70% 4190882 2035000 0 4190882 applicab 0
HONG KONG) person le
LIMITED
Haitong
International Overseas Not
Securities legal 0.65% 3908357 0 0 3908357 applicab 0
Company person le
Limited-
Account Client
Domestic Not
Huang Yilong natural 0.64% 3866500 0 0 3866500 applicab 0
person le
Meiyi Domestic Not
Investment Real non-state- 0.59% 3579300 -1643900 0 3579300 applicab 0
Estate Co. Ltd. owned le
legal
36Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
person
Strategic investors or general
legal persons becoming the
top 10 ordinary shareholders None
due to placement of new
shares (if any) (see Note 3)
Explanation of the above- 1. Shenzhen Energy Corporation holds 100% equity in HONG KONG NAM HOI
mentioned shareholders' (INTERNATIONAL) LTD
relationship or concerted 2. The Company is unaware of whether the above-mentioned other public shareholders have any
actions relationship or are persons acting in concert.Explanation of the
circumstances in which the
above-mentioned
None
shareholders involve
entrusted voting right and
abstention from voting right
Special explanation for the
existence of repurchase
accounts among the top 10 None
shareholders (if any) (see
Note 11)
Shareholdings of the top 10 non-restricted ordinary shareholders (excluding shares lent through refinancing and locked shares of
senior executives)
Ending number of ordinary shares Type of shares
Name without restrictive conditions for
sales Type of shares Quantity
HONG KONG NAM HOI
92123248 Domestic listed foreign shares 92123248
(INTERNATIONAL) LTD
Shenzhen Guangju Industrial
73666824 Renminbi ordinary shares 73666824
Co. Ltd.Shenzhen Energy Corporation 65106130 Renminbi ordinary shares 65106130
Zeng Ying 7159600 Domestic listed foreign shares 7159600
China Merchants Securities
5402154 Domestic listed foreign shares 5402154
(Hong Kong) Co. Ltd.BOCI
5252215 Domestic listed foreign shares 5252215
SECURITIES LIMITED
GUOTAI
JUNAN
SECURITIES(HONG 4190882 Domestic listed foreign shares 4190882
KONG)
LIMITED
37Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Haitong
International Securities 3908357 Domestic listed foreign shares 3908357
Company Limited-Account
Client
Huang Yilong 3866500 Renminbi ordinary shares 3866500
Meiyi Investment Real Estate
3579300 Renminbi ordinary shares 3579300
Co. Ltd.Description of association or
concerted action among the
top 10 ordinary shareholders 1. Shenzhen Energy Corporation holds 100% equity in HONG KONG NAM HOI
without restrictive condition (INTERNATIONAL) LTD
for sales and that between the
top 10 ordinary shareholders 2. The Company is unaware of whether the above-mentioned other public shareholders have any
without restrictive condition relationship or are persons acting in concert.for sales and the top 10
ordinary shareholders
Description of the top 10
ordinary shareholders'
participation in margin None
trading and securities 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.IV. Changes in shareholding of directors supervisors and senior officers
□Applicable □ Not applicable
There were no changes in the shareholdings of the Company's directors supervisors and senior officers during the reporting period.For details please refer to the 2023 Annual Report.V. Changes in the controlling shareholder or the actual controller
Changes in controlling shareholders during the reporting period
□Applicable □ Not applicable
38Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
The Company's controlling shareholder did not change during the reporting period.Changes in actual controller during the reporting period
□Applicable □ Not applicable
The Company's actual controller did not change during the reporting period.
39Full Text of the Semi-Annual Report 2024 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.
40Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Section IX Bonds
□Applicable □Not applicable
41Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Section X Financial report
I. Auditor's report
Whether the semi-annual report has been audited.□Yes □No
The Company's semi-annual report has not been audited.II. Financial statements
The unit in the notes to the financial statements is: RMB
1. Consolidated balance sheet
Prepared by: Shenzhen Nanshan Power Co. Ltd.June 30 2024
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Monetary funds 312526567.91 316188782.49
Balances with clearing companies
Loans to banks and other financial
institutions
Financial assets held for trading 273000000.00 226000000.00
Derivative financial assets
Notes receivable
Accounts receivable 118860740.60 111975251.10
Receivables financing
Advances to suppliers 836450.53 26869175.59
Premiums receivable
Reinsurance accounts receivable
Receivable reinsurance contract reserve
42Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Other receivables 19558020.33 19233117.52
Including: interest receivable
Dividends receivable
Financial assets purchased under resale
agreements
Inventories 83727533.35 86158251.16
Including: data resources
Contract assets 88000.00
Assets held for sale
Non-current assets due within one year
Other current assets 287836740.79 232865968.63
Total current assets 1096346053.51 1019378546.49
Non-current assets:
Issuance of loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 91619964.42 90001176.04
Other investments in equity instruments 350615000.00 300615000.00
Other non-current financial assets
Investment properties 1581288.22 1664566.60
Fixed assets 572547386.78 571482734.35
Construction in progress 2488051.21 3448855.10
Productive biological assets
Oil and gas assets
Right-of-use assets 8334145.33 2266946.42
Intangible assets 20389648.48 19285629.03
43Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Including: data resources
Development expenses
Including: data resources
Goodwill
Long-term deferred expenses 6680865.39 3891832.93
Deferred tax assets 1172366.49 1172366.49
Other non-current assets 899575.71 36157735.24
Total non-current assets 1056328292.03 1029986842.20
Total assets 2152674345.54 2049365388.69
Current liabilities:
Short-term borrowings 470944226.88 341237886.72
Borrowing from the Central Bank
Borrowings from banks and other
financial institutions
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payable 13429401.56 4342166.50
Advances from customers
Contract liabilities 119549.51
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 4568860.87 46238982.57
44Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Taxes payable 4863438.40 3089330.47
Other payables 15699302.91 13973447.42
Including: interest payable
Dividends payable
Handling charges and commissions
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
31604800.293926326.45
year
Other current liabilities 175425195.71
Total current liabilities 716654776.13 412808140.13
Non-current liabilities:
Reserves for insurance contract
Long-term borrowings 58829426.30
Bonds payable
Including: preferred shares
Perpetual bonds
Lease liabilities 4640491.00
Long-term payables
Long-term employee compensations
payable
Estimated liabilities 15000000.00 15000000.00
Deferred income 64695900.62 67869348.07
Deferred tax liabilities
Other non-current liabilities 45112.54 104045112.54
Total non-current liabilities 84381504.16 245743886.91
Total liabilities 801036280.29 658552027.04
45Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
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 -2500000.00 -2500000.00
Special reserves 1486848.46
Surplus reserves 332908397.60 332908397.60
General risk reserves
Undistributed profits 125495666.34 163346776.24
Total equity attributable to the owners of
1422924430.501459288691.94
the parent company
Minority interests -71286365.25 -68475330.29
Total owners' equity 1351638065.25 1390813361.65
Total liabilities and owners' equity 2152674345.54 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 Ending balance Beginning balance
Current assets:
Monetary funds 238132520.44 288209271.60
Financial assets held for trading 273000000.00 226000000.00
Derivative financial assets
Notes receivable
46Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Accounts receivable 58955956.80 26981407.91
Receivables financing
Advances to suppliers 1293346.83 15384546.45
Other receivables 700585696.79 714553901.02
Including: interest receivable
Dividends receivable
Inventories 78147454.03 79966182.19
Including: data resources
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 232604238.82 225282791.79
Total current assets 1582719213.71 1576378100.96
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 447317326.90 495642748.40
Other investments in equity instruments 210615000.00 160615000.00
Other non-current financial assets
Investment properties
Fixed assets 360689519.42 270785343.05
Construction in progress 1418051.21 2267334.95
Productive biological assets
Oil and gas assets
Right-of-use assets 8334145.33 2266946.42
47Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Intangible assets 1280943.68 159361.27
Including: data resources
Development expenses
Including: data resources
Goodwill
Long-term deferred expenses 6680865.39 699249.25
Deferred tax assets
Other non-current assets 899575.71 857135.84
Total non-current assets 1037235427.64 933293119.18
Total assets 2619954641.35 2509671220.14
Current liabilities:
Short-term borrowings 213944226.88 341237886.72
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 257000000.00
Accounts payable 8698409.13 896652.87
Advances from customers
Contract liabilities
Employee compensation payable 1131878.33 7012680.38
Taxes payable 1168873.79 1413720.40
Other payables 193504567.31 203625916.75
Including: interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one
31604800.293926326.45
year
Other current liabilities
48Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Total current liabilities 707052755.73 558113183.57
Non-current liabilities:
Long-term borrowings 58829426.30
Bonds payable
Including: preferred shares
Perpetual bonds
Lease liabilities 4640491.00
Long-term payables
Long-term employee compensations
payable
Estimated liabilities
Deferred income 63814211.93 48280623.30
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 68454702.93 107110049.60
Total liabilities 775507458.66 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 1486848.46
Surplus reserve 332908397.60 332908397.60
Undistributed profits 617326300.93 618813953.67
49Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Total owners' equity 1844447182.69 1844447986.97
Total liabilities and owners' equity 2619954641.35 2509671220.14
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance
Department: Lin Xiaojia
3. Consolidated Income Statement
Unit: RMB
Item 1H24 1H23
I. Total operating revenue 187904264.71 271268185.05
Including: operating revenue 187904264.71 271268185.05
Interest income
Premiums earned
Handling charges and commission
income
Ii. Total operating costs 241153276.40 342848838.47
Including: operating costs 180350403.95 285367929.90
Interest costs
Handling charges and commission
expenses
Surrender value
Net amount of compensation payout
Net amount of insurance liability reserve
withdrawn
Policy dividends
Reinsurance costs
Taxes and surcharges 1688396.29 2041706.60
Selling and distribution expenses 1609144.89 897707.82
G&A expenses 36646293.91 34513202.72
50Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
R&D expenses 15116862.75 13297926.31
Financial expenses 5742174.61 6730365.12
Including: interest expenses 7949322.98 9747951.03
Interest income -2338321.70 -3020964.70
Plus: other income 3612526.69 4065271.26
Investment income ("-" for losses) 9007609.64 19725870.53
Including: investment income from
2428488.381643156.49
associates and joint ventures
Gains from derecognition of financial
assets measured at amortized costs
Exchange gains ("-" for losses)
Net exposure hedging gains ("-" for
losses)
Gains from fair value changes ("-" for
losses)
Losses from credit impairment ("-" for
losses)
Losses from assets impairment ("-" for
losses)
Gains from disposal of assets ("-" for
111895.22
losses)
III. Operating profit ("-" for losses) -40628875.36 -47677616.41
Plus: non-operating revenue 75461.40 4994213.17
Less: non-operating expenses 108730.90 6208.32
IV. Total profit ("-" for total losses) -40662144.86 -42689611.56
Less: income tax expenses 479.55
V. Net profit ("-" for net losses) -40662144.86 -42690091.11
(I) Classification by business continuity
1. Net profit from continued operation
-40662144.86-42690091.11
("-" for net loss)
2. Net profit from discontinued
operations ("-" for net loss)
51Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
(II) Classification by ownership
1. Net profit attributable to shareholders
-37851109.90-37240739.56
of the parent company ("-" for net loss)
2. Minority interest income ("-" for net
-2811034.96-5449351.55
loss)
VI. Net after-tax amount of other
comprehensive income
Net after-tax amount of other
comprehensive income attributable to
owners of parent company
(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
(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
52Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Net after-tax amount of other
comprehensive income attributable to
minority shareholders
VII. Total comprehensive income -40662144.86 -42690091.11
Total comprehensive income attributable
-37851109.90-37240739.56
to owners of the parent company
Total comprehensive income attributable
-2811034.96-5449351.55
to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share -0.0628 -0.0618
(II) Diluted earnings per share -0.0628 -0.0618
In case of any business combination under the same control in the current period the net profit realized by the combinee before the
combination was RMB0.00 and the net profit realized by the combinee in the previous period was RMB0.00.Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance
Department: Lin Xiaojia
4. Parent company's income statement
Unit: RMB
Item 1H24 1H23
I. Operating revenue 140040524.58 167763232.36
Less: operating costs 118685219.63 167385274.90
Taxes and surcharges 1101670.24 797742.96
Selling and distribution expenses 537063.19 333513.64
G&A expenses 26326867.76 13560282.42
R&D expenses 9249152.47 8859406.25
Financial expenses -3091965.12 -15313487.00
Including: interest expenses 7829242.34 6443539.09
Interest income -11090119.70 -22272424.92
Plus: other income 2333552.74 2014744.97
Investment income ("-" for losses) 8979547.61 17708671.86
53Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Including: investment income from
2400426.351308357.00
associates and joint ventures
Income on termination of recognition of
financial assets measured at amortized
costs ("-" for losses)
Net exposure hedging gains ("-" for
losses)
Gains from fair value changes ("-" for
losses)
Losses from credit impairment ("-" for
losses)
Losses from assets impairment ("-" for
losses)
Gains from disposal of assets ("-" for
-40000.01
losses)
II. Operating profits ("-" for losses) -1454383.24 11823916.01
Plus: non-operating revenue 75461.40 847884.24
Less: non-operating expenses 108730.90 6208.32
III. Total profits ("-" for total losses) -1487652.74 12665591.93
Less: income tax expenses 479.55
IV. Net profit ("-" for net loss) -1487652.74 12665112.38
(I) Net profit from continued operations
-1487652.7412665112.38
("-" for net loss)
(II) Net profit from discontinued
operations ("-" for net loss)
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
54Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
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
VI. Total comprehensive income -1487652.74 12665112.38
VII. Earnings per share:
(I) Basic earnings per share -0.0025 0.0210
(II) Diluted earnings per share -0.0025 0.0210
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 1H24 1H23
I. Cash flows from operating activities:
Cash received from sales of goods and
204720091.12296915732.81
rendering of services
Net increase in customer bank deposits
and due to banks and other financial
institutions
55Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
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
17132583.9812296599.09
activities
Sub-total of cash inflows from operating
221852675.10309212331.90
activities
Cash paid for purchase of goods and
149321071.54280708443.46
acceptance of services
Net increase in loans and advances to
customers
Net increase in deposits with the Central
Bank and interbank funds
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
56Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Cash paid to and on behalf of employees 90936937.95 54829117.40
Taxes and fees paid 13324028.30 12312023.45
Payments of other cash related to
21267128.7418379237.13
operating activities
Sub-total of cash outflows from
274849166.53366228821.44
operating activities
Net cash flows from operating activities -52996491.43 -57016489.54
II. Cash flows from investing activities:
Recovery of cash received from
134000000.00285010220.37
investment
Cash received from investment income 3998821.38 29300616.97
Net cash recovered from disposal of
fixed assets intangible assets and other 71336059.00 550880.00
long-term assets
Net cash received from disposal of
subsidiaries and other business units
Other cash received relating to investing
activities
Sub-total of cash inflows from investing
209334880.38314861717.34
activities
Cash paid for the acquisition and
construction of fixed assets intangible 7770808.18 2754947.23
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
181000000.0050000000.00
investing activities
Sub-total of cash outflows from investing
238770808.1852754947.23
activities
Net cash flows from investing activities -29435927.80 262106770.11
III. Cash flows from financing activities:
Cash received from absorption of
57Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
investments
Including: cash received by subsidiaries
from absorption of minority
shareholders' investments
Cash received from acquisition of
312026209.56265878587.77
borrowings
Other cash received related to financing
activities
Sub-total of cash inflows from financing
312026209.56265878587.77
activities
Cash paid for debt repayment 218385088.06 847229358.05
Cash paid for distribution of dividends
6770219.036158185.74
profits or interest payments
Including: dividends and profits paid by
subsidiaries to minority shareholders
Payments of other cash related to
5484440.005440434.23
financing activities
Sub-total of cash outflows from
230639747.09858827978.02
financing activities
Net cash flows from financing activities 81386462.47 -592949390.25
IV. Impact of fluctuation in exchange
37605.11237073.97
rate on cash and cash equivalents
V. Net increase in cash and cash
-1008351.65-387622035.71
equivalents
Plus: beginning balance of cash and cash
310734919.56648021672.06
equivalents
VI. Ending balance of cash and cash
309726567.91260399636.35
equivalents
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 1H24 1H23
I. Cash flows from operating activities:
Cash received from sales of goods and 174377280.01 238785052.21
58Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
rendering of services
Tax refunds received
Other cash received related to operating
153330653.5056464858.58
activities
Sub-total of cash inflows from operating
327707933.51295249910.79
activities
Cash paid for purchase of goods and
88477771.52169853255.01
acceptance of services
Cash paid to and on behalf of employees 40489337.93 33292463.79
Taxes and fees paid 9522902.24 4813280.65
Payments of other cash related to
50400653.94129718913.30
operating activities
Sub-total of cash outflows from
188890665.63337677912.75
operating activities
Net cash flows from operating activities 138817267.88 -42428001.96
II. Cash flows from investing activities:
Recovery of cash received from
504336059.00285010220.37
investment
Cash received from investment income 3998821.38 27618217.79
Net cash recovered from disposal of
fixed assets intangible assets and other
long-term assets
Net cash received from disposal of
subsidiaries and other business units
Other cash received relating to investing
activities
Sub-total of cash inflows from investing
508334880.38312628438.16
activities
Cash paid for the acquisition and
construction of fixed assets intangible 893442.13 2608372.23
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 457630000.00 63500000.00
59Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
investing activities
Sub-total of cash outflows from investing
508523442.1366108372.23
activities
Net cash flows from investing activities -188561.75 246520065.93
III. Cash flows from financing activities:
Cash received from absorption of
investments
Cash received from acquisition of
57413251.22265878587.77
borrowings
Other cash received related to financing
activities
Sub-total of cash inflows from financing
57413251.22265878587.77
activities
Cash paid for debt repayment 218385088.06 847229358.05
Cash paid for distribution of dividends
6295552.366155786.56
profits or interest payments
Payments of other cash related to
15984323.3410578867.57
financing activities
Sub-total of cash outflows from
240664963.76863964012.18
financing activities
Net cash flows from financing activities -183251712.54 -598085424.41
IV. Impact of fluctuation in exchange
118.181964.51
rate on cash and cash equivalents
V. Net increase in cash and cash
-44622888.23-393991395.93
equivalents
Plus: beginning balance of cash and cash
282755408.67625228950.87
equivalents
VI. Ending balance of cash and cash
238132520.44231237554.94
equivalents
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance
Department: Lin Xiaojia
60Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
7. Consolidated statements of changes in owners' equity
Current period
Unit: RMB
1H24
Owners' equity attributable to the parent company
Item Other equity instruments Total
Less: Other Gener Minority owners'
Capital treasu comprehe Special Surplus al risk Undistribut Other interests
Equity Subtotal equity Prefer Perpet
Other reserve ry nsive reserve reserve reserv ed profits s
red ual
s shares income e
shares bonds
I. Ending - -
6027625362770923329083163346771459288613908133
balance of the 2500000. 6847533
96.002.1097.606.2491.9461.65
previous year 00 0.29
Plus: changes
in accounting
policies
Correction of
prior period
errors
Others
II. Beginning - -
6027625362770923329083163346771459288613908133
balance of the 2500000. 6847533
96.002.1097.606.2491.9461.65
current year 00 0.29
III. Changes
----
in the current 1486848.
37851109.36364261.2811034.39175296.
period ("-" for 46
90449640
decrease)
61Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
(I) Total - - - -
comprehensiv 37851109. 37851109. 2811034. 40662144.e income 90 90 96 86
(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
62Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
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
comprehensiv
e income
transferred to
retained
earnings
6. Others
63Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
(V) Special 1486848. 1486848.4 1486848.4
reserve 46 6 6
1. Withdrawal
2811200.2811200.92811200.9
in the current
9111
period
2. Usage in
1324352.1324352.41324352.4
the current
4555
period
(VI) Others
IV. Ending - -
6027625362770921486848.3329083125495661422924413516380
balance in the 2500000. 7128636
96.002.104697.606.3430.5065.25
current period 00 5.25
Previous year
Unit: RMB
1H23
Owners' equity attributable to the parent company
Other equity
Item instruments Total
Less: Other Gener Minority owners'
Capital treasur comprehe Special Surplus al risk Undistribu interests
Equity Others Subtotal equity Prefe Perp reserve y nsive reserve reserve reserv ted profits
rred etual Othe shares income e
share bond rs
s s
I. Ending balance - -
602762596362770332908315918791455129813928190
of the previous 2500000. 6231084.00922.1097.6079.1494.8454.58
year 00 0.26
64Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
Plus: changes in
accounting
policies
Correction of
prior period errors
Others
II. Beginning - -
602762596362770332908315918791455129813928190
balance of the 2500000. 6231084.00922.1097.6079.1494.8454.58
current year 00 0.26
III. Changes in the - - - -
219435.9
current period ("-" 3724073 37021303. 5449351. 42470655.
4
for decrease) 9.56 62 55 17
(I) Total - - - -
comprehensive 3724073 37240739. 5449351. 42690091.income 9.56 56 55 11
(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
65Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
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
66Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
5. Other
comprehensive
income
transferred to
retained earnings
6. Others
(V) Special 219435.9
219435.94219435.94
reserve 4
1. Withdrawal in 5086973. 5086973.5 5086973.5
the current period 52 2 2
2. Usage in the 4867537. 4867537.5 4867537.5
current period 58 8 8
(VI) Others
IV. Ending - -
602762596362770219435.9332908312194721418108513503483
balance in the 2500000. 6776019.00922.10497.6039.5891.2299.41
current period 00 1.81
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 owner's equity of the parent company
Current period
Unit: RMB
1H24
Item
Equity Other equity instruments Capital Less: Other Special Surplus Undistribute Others Total owners'
67Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
reserve treasu compreh reserve reserve d profits equity
Prefer Perpet ry ensive
red ual Others shares income
shares bonds
I. Ending balance of the 602762596.0 2899630 332908397.6 618813953 1844447986.previous year 0 39.70 0 .67 97
Plus: changes in accounting
policies
correction of prior period errors
Others
II. Beginning balance of the 602762596.0 2899630 332908397.6 618813953 1844447986.current year 0 39.70 0 .67 97
-
III. Changes in the current 1486848.4
1487652.7-804.28
period ("-" for decrease) 6
4
-
(I) Total comprehensive income 1487652.7 -1487652.74
4
(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
68Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
(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)
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
1486848.4
(V) Special reserve 1486848.46
6
1. Withdrawal in the current 2794219.7
2794219.78
period 8
2. Usage in the current period 1307371.3 1307371.32
69Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
2
(VI) Others
IV. Ending balance in the 602762596.0 2899630 1486848.4 332908397.6 617326300 1844447182.current period 0 39.70 6 0 .93 69
Amount last year
Unit: RMB
1H23
Other equity instruments Other
Item Less: compr
Capital treasu ehensi Special Surplus Undistributed Total owners'
Equity Prefer Perpet Others reserve ry ve reserve reserve profits equity
red ual Others shares incom
shares bonds e
I. Ending balance of the previous 602762596 289963039 332908397 556747679.9 1782381713
year .00 .70 .60 6 .26
Plus: changes in accounting
policies
correction of prior period errors
Others
II. Beginning balance of the 602762596 289963039 332908397 556747679.9 1782381713
current year .00 .70 .60 6 .26
III. Changes in the current period
219435.9412665112.3812884548.32
("-" for decrease)
(I) Total comprehensive income 12665112.38 12665112.38
70Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
(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)
3. Surplus reserve to cover losses
4. Changes in benefit plans
transferred to retained earnings
71Full Text of the Semi-Annual Report 2024 of Shenzhen Nanshan Power Co. Ltd.
5. Other comprehensive income
transferred to retained earnings
6. Others
(V) Special reserve 219435.94 219435.94
1. Withdrawal in the current 3810328.3
3810328.32
period 2
3590892.3
2. Usage in the current period 3590892.38
8
(VI) Others
IV. Ending balance in the current 602762596 289963039 332908397 569412792.3 1795266261
219435.94
period .00 .70 .60 4 .58
Legal representative: Kong Guoliang Chief Accountant: Chen Yuhui Chief Financial Officer: Zhang Xiaoyin Head of the Finance Department: Lin Xiaojia
72Shenzhen Nanshan Power Co. Ltd.
For the Year Ended June 30 2024
Notes to the Financial Statements
Shenzhen Nanshan Power Co. Ltd.Notes to the 2024 Semi-Annual Financial Statements
(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 main 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 office 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 August 21 2024.(II) Scope of financial statements
There are a total of 8 subsidiaries (enterprises) included in the scope of the consolidated financial
statements in the current period including:
Shareholding
Subsidiary (enterprise) name Remark
ratio %
Shenzhen Nanshan Power (Zhongshan) Power Co. Ltd. (Shenzhen
80.00
Nanshan Power Zhongshan Company)
Shenzhen Nanshan Power Gas Turbine Engineering Technology
100.00
(Shenzhen) Co. Ltd. (Shenzhen Nanshan Power Engineering 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. (Shennan Energy (Singapore)
100.00
Company)
Hong Kong Syndisome Co. Ltd. (Hong Kong Syndisome) 100.00
Zhuhai Hengqin Zhuozhi Investment Partnership ( Limited Partnership)
99.96
(Zhuhai Hengqin)
Notes to the Financial Statements Page 1Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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.II. Basis for the preparation of financial statements
The financial statements are prepared in accordance with Accounting Standards for Business
Enterprises - Basic Standards promulgated by the Ministry of Finance and the specific accounting
standards application guidelines interpretations and other relevant regulations promulgated and
revised thereafter (collectively referred to as the "Accounting Standards for Business Enterprises").In addition the financial statements also disclose relevant financial information in accordance
with the Information Disclosure and Preparation Rules for Companies that Issue Public Offering
of Securities No. 15 - General Provisions on Financial Reports (Revised in 2023).The financial statements are prepared on a going concern basis. The Company has not found any
factors that would cause significant doubts about its going-concern ability within 12 months from
the end of the reporting period.III. 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 (XVI)) Long-term Deferred Expenses (Note III (XXI)) Revenue Recognition and
Measurement (Note III (XXV)) Special Reserves (Note III (XXX)) etc.(I) 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 consolidated and parent company's financial status as of June 30 2024 as well as the
consolidated and parent company's operating results and cash flows for the year ended June 30
2024.
(II) Accounting period
A fiscal year begins on January 1 and ends on December 31 of the Gregorian calendar.(III) Operating cycle
The Company uses 12 months of the year as its normal operating cycle and uses the operating
cycle as a criterion for classifying the liquidity of its assets and liabilities.(IV) Recording currency
The Company uses RMB as the recording currency.(V) 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
Notes to the Financial Statements Page 2Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Item Materiality criterion
The individual amount is greater than RMB 5
Significant construction in progress
million
The individual amount is greater than RMB 5
Significant estimated liabilities
million
(VI) 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
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.(VII) 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
Notes to the Financial Statements Page 3Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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
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
Notes to the Financial Statements Page 4Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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
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
deal 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 deal 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 deal 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.(VIII) 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
Notes to the Financial Statements Page 5Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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;
(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.The Company's accounting policies for investments in joint ventures are set out in Note III. (14)
Long-term Equity Investments.(IX) 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.(X) 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 translation difference of 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.(XI) 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 contract 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 contract cash flows and
whose contract cash flows consist solely of payments of principal and interest based on the
Notes to the Financial Statements Page 6Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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 contract 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.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) The designation can eliminate or significantly reduce the accounting mismatch.
(2) Manage and evaluate the performance of the financial liabilities portfolio or the financial
assets and financial liabilities portfolio on a fair value basis in accordance with the enterprise's risk
management or investment strategy as set out in formal written document and report on this basis
within the enterprise to key officers.
(3) The financial liabilities contain embedded derivatives that are subject to separate spin-off.
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.Notes to the Financial Statements Page 7Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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
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.Notes to the Financial Statements Page 8Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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.
(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
Notes to the Financial Statements Page 9Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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.
6. Impairment of financial assets
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
Notes to the Financial Statements Page 10Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Portfolio II Receivables from power production and sales
Portfolio III Integrated energy service receivables
Consolidated accounts receivable from related parties other receivables and contract
Portfolio IV
asset portfolios
Portfolio V Margin security deposit and petty cash portfolio
Portfolio VI Export tax rebate VAT refunded upon collection and other tax portfolios
Portfolio VII Other receivables and temporary payments other than the above portfolios
(XII) 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.
(XIII) Contract assets
Notes to the Financial Statements Page 11Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
If the Company has transferred the goods to the customer and has the right to receive
consideration and the right depends on factors other than the passage of time it is recognized as
contract assets. 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.See "III. (XI) 6. Impairment of financial assets" for the Company's determination method and
accounting treatment for the expected credit losses of contract assets.(XIV) 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
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.Notes to the Financial Statements Page 12Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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 subsidiaries are 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
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.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.Notes to the Financial Statements Page 13Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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
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.(XV) 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.(XVI) 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 Company provides the depreciation based on the production method within its service life
after deducting estimated net residual value and accumulated provision for impairment from the
cost of gas turbine generator unit; Other fixed assets are depreciated over the service life under
straight-line method at their cost less estimated net residual value and accumulated provision for
Notes to the Financial Statements Page 14Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
impairment.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:
Depreciation
Category Depreciation life (years) Residual rate(%) Annual depreciation rate (%)
method
Houses and straight-line
200-104.5-5
buildings method
House straight-line
100-59.5-10
decoration method
Machinery
equipment
(except for straight-line
15-200-54.75-6.67
gas turbine method
generator
unit)
Machinery
equipment
- gas Workload
turbine method
generator
units
means of straight-line
50-519-20
transport method
Electronic straight-line
50-519-20
equipment method
Other straight-line
50-519-20
equipment method
3. Subsequent expenditure
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.(XVII) 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
Notes to the Financial Statements Page 15Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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
Houses and buildings protection department state-owned land department and planning department etc.; (4)
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.(XVIII) Borrowing costs
1. Recognition principles for capitalization of borrowing costs
The borrowing costs include borrowing interest amortization of discounts or premiums auxiliary
expenses and exchange differences arising from foreign currency borrowings etc.The borrowing costs incurred by the Company which can be directly attributable to the
acquisition or production of assets eligible for capitalization it shall be capitalized and included in
the cost of relevant assets; 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.Notes to the Financial Statements Page 16Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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
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.(XIX) 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.Notes to the Financial Statements Page 17Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
2. Estimated service life of intangible assets with limited service life
For Intangible assets with limited service life their original values less the estimated net residual
value and the cumulative amount of the provision for impairment that has been made are
amortized in equal installments using the straight-line method over the estimated service life from
the time they are available for use. Intangible assets with indefinite service life are not amortized.At the end of the period service life and amortization method of intangible assets with limited
service life are reviewed and changes if any are treated as changes in accounting estimates. The
specific amortization period are as follows:
Amortization Amortization period Basis for use
Category
method (year)
Within the validity
Straight-line
Land use right 30-50 period of the land title
method
certificate
Straight-line
Patented technology 10 Patent certificate
method
Straight-line Software availability
Software 5
method period
3. Basis for judgment of intangible assets with indefinite service life and procedures for
reviewing their service life
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.(XX) Asset impairment
Notes to the Financial Statements Page 18Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Long-term assets such long-term equity investments investment properties measured under the
cost model fixed assets construction in progress and intangible assets with limited service life
are subject to impairment test if there are signs of indications of impairment on the balance sheet
date. 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
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.(XXI) Long-term deferred expenses
1. Amortization method for long-term deferred expenses
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.
2. Amortization period of long-term deferred expenses
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.Item Amortization period
Notes to the Financial Statements Page 19Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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
(XXII) 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.(XXIII) 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 shall calculate and determine the corresponding amount of employee compensation
for social insurance premiums and housing provident fund paid for employees and trade union
funds withdrawn in accordance with the prescribed accrual basis and accrual ratio during the
accounting period when employees provide services for 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
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.(XXIV) 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.
Notes to the Financial Statements Page 20Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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.
(1) When the obligations generated from such contingencies as external guarantee contentious
matters products quality guarantees and onerous contracts are present obligations of the Company
the performance of such obligations is likely to result in outflow of economic benefits from the
Company and if the amount of the obligations can be measured reliably such obligations shall be
recognized as estimated liabilities by the Company.
(2) The estimated liabilities of the Company are initially measured at the best estimate of
expenses required for the performance of relevant present obligations and the book value of the
estimated liabilities shall be reviewed on the balance sheet date.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.(XXV) 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.The Company evaluates the contract on the contract commencement date identifies each single
performance obligation contained in the contract and determines whether each individual
performance obligation is performed within a certain period or at a certain time point. 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
Notes to the Financial Statements Page 21Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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
Revenue from integrated energy services between the Company and its customers mainly includes
revenue from engineering labor and services such as operation and maintenance management
commissioning and overhaul as well as energy service revenue from industrial and commercial
energy storage and power sales. If multiple performance obligations are involved they shall be
split reasonably and the equipment sales shall be processed according to the sales 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.
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
Notes to the Financial Statements Page 22Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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.(XXVI) Contract costs
1. Costs of obtaining the contract
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. Costs of performing the contract
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
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.(XXVII) government subsidies
1. Type
Notes to the Financial Statements Page 23Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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.(XXVIII) 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
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.Notes to the Financial Statements Page 24Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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.(XXIX) 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 houses and buildings 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 income 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 income 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-
current assets due within one year.(XXX) Special reserves
The safety production costs 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
Notes to the Financial Statements Page 25Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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.(XXXI) Changes in significant accounting policies and accounting estimates
1. Significant changes in accounting policies
There were no changes in significant accounting policies during the reporting period.
2. Changes in significant accounting estimates
According to the relevant provisions of the Accounting Standards for Business Enterprises No. 4 -
Fixed Assets the enterprise shall review the service life estimated net residual value and
depreciation method of the fixed assets at least at the end of each year. By sorting out the fixed
assets card information of each unit and combining with the actual use of the Company's fixed
assets in order to more fairly and appropriately reflect the value of the Company's fixed assets it
is proposed to adjust the net residual value rate of the fixed assets of house decoration machinery
equipment (except for gas turbine generator unit) means of transport electronic equipment and
other equipment from the original 10% to 0-5%. The changes in accounting estimates were
implemented from January 1 2024.According to the Accounting Standards for Business Enterprises No. 28 - Accounting Estimates
Changes in Accounting Estimates and Correction of Errors the changes in accounting estimates
adopt the prospective application method so the changes in accounting estimates will not affect
the financial position and operating costs of Shenzhen Nanshan Power in previous periods.IV. Taxes
(XXXII) 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 to the tax law. After 13% 9% 6% 5%
Value-added tax
deducting the input tax allowed to be deducted 3%
in the current period difference shall be the
value-added tax payable.Urban maintenance Based on the actual value-added tax and
7%
and construction tax consumption tax paid
Based on the actual value-added tax and
Education surcharge 3%
consumption tax paid
Local education Based on the actual value-added tax and
2%
surcharge consumption tax paid
Except for the
following
enterprises that
Corporate income tax Based on taxable income enjoy tax
preferential
treatment tax shall
be paid at 25% of
Notes to the Financial Statements Page 26Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Tax type Tax basis Tax rate
the taxable income.For the actual occupied land area of industrial
land in Nanshan District Shenzhen tax shall be
Urban land use tax paid at RMB 2-8/square meter. Calculated and
paid at RMB 1/m2 for the actual land area
occupied by industrial land in Zhongshan
Foreign taxes shall be calculated according to
Foreign taxes the tax regulations of each overseas country and
region.The tax subjects with different corporate income tax tax rates are as follows:
Taxpayer name Income tax rate
Shenzhen Nanshan Power Engineering Company 15%
(XXXIII) Main tax preferential treatment
1. Corporate income tax
Shenzhen Nanshan Power Engineering Company obtained a national high-tech enterprise
certificate No. 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.Note: During the reporting period the national high-tech enterprise recognition of the Company
was in the review stage.
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
V. Notes to the items of consolidated financial statements
(I) Monetary funds
Ending balance of
Item Ending balance
previous year
cash on hand 30227.42 30329.83
Notes to the Financial Statements Page 27Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending balance of
Item Ending balance
previous year
bank deposits 308882584.66 310694227.98
Other monetary funds 3613755.83 5464224.68
Deposits with financial company
Total 312526567.91 316188782.49
Including: total amount deposited abroad 6144424.14 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:
Ending balance of
Item Ending balance
previous year
L/G deposit 2800000.00 5453862.93
Total 2800000.00 5453862.93
In addition as at June 30 2024 the Company had no monetary funds subject to the restriction to
use due to mortgage pledge or freezing and with potential recovery risks.(II) Financial assets held for trading
Ending balance of
Item Ending balance
previous year
Financial assets measured at fair value with
changes included in the current profit or 273000000.00 226000000.00
loss
Including: investments in debt instruments
investments in equity instruments
Derivative financial assets
Others (note) 273000000.00 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
investments in equity instruments
Total 273000000.00 226000000.00
Note: the balance at the end of the year is the structured deposits deposited by the Company with
idle self-owned funds.Notes to the Financial Statements Page 28Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
(III) Accounts receivable
1. Disclosure of accounts receivable on an aging basis
Ending balance of
Aging Ending balance
previous year
Within 1 year 74943040.66 51764528.59
1 to 2 years 26239543.25 40359448.07
2 to 3 years 19305121.11 21478238.86
Over 3 years 5464799.07 5464799.07
Subtotal 125952504.09 119067014.59
Less: provision for bad debts 7091763.49 7091763.49
Total 118860740.60 111975251.10
2. Accounts receivable are classified and disclosed according to the method of provision
for bad debts
Ending balance
Book balance Provision for bad debts
Category
Book value
Ratio Provision
Amount Amount
(%) ratio (%)
Provision for bad
debts on an 5464799.07 4.34 5464799.07 100
individual basis
Provision for bad
debts on a credit risk 120487705.02 95.66 1626964.42 1.35 118860740.60
portfolio basis
Total 125952504.09 100.00 7091763.49 5.63 118860740.60
Ending balance of previous year
Book balance Provision for bad debts
Category
Book value
Ratio Provision
Amount Amount
(%) ratio (%)
Provision for bad
debts on an 5464799.07 4.59 5464799.07 100.00
individual basis
Notes to the Financial Statements Page 29Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending balance of previous year
Book balance Provision for bad debts
Category
Book value
Ratio Provision
Amount Amount
(%) ratio (%)
Provision for bad
debts on a credit risk 113602215.52 95.41 1626964.42 1.43 111975251.10
portfolio basis
Total 119067014.59 100.00 7091763.49 5.96 111975251.10
(1) Important provision for bad debts on an individual basis
Ending balance of previous
Ending balance
year
Name Reasons
Provision Provision Provisio
Book Book for
for bad for bad n ratio
balance balance provisio
debts debts (%)
n
Shenzhen
Petrochemica Not
l Oil expected
3474613.03474613.03474613.03474613.0
Products 100.00 to be
6666
Bonded recovere
Trading Co. d
Ltd.Not
China
expected
Solibase 1137145.5 1137145.5 1137145.5 1137145.5
100.00 to be
Engineering 1 1 1 1
recovere
Co. Ltd.d
4611758.54611758.54611758.54611758.5100.00
Total
7777
(2) Provision for bad debts by portfolio
Ending balance
Name of portfolios
Provision for bad Provision ratio
Accounts receivable
debts (%)
Portfolio II: receivables from power
58955956.80
production and sales
Portfolio III: receivables from
61531748.221626964.422.64
integrated energy service
Notes to the Financial Statements Page 30Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending balance
Name of portfolios
Provision for bad Provision ratio
Accounts receivable
debts (%)
Total 120487705.02 1626964.42 1.35
3. Provision for bad debts accrued reversed or recovered for the current period
Amount of changes for the current period
Ending
balance of Ending
Category Reverse Charge-
previous balance
Accrual or off or Others
year
recovery write-off
Provision for bad
debts on an 5464799.07 5464799.07
individual basis
Provision for bad
debts on a credit
1626964.421626964.42
risk portfolio
basis
Total 7091763.49 7091763.49
4. Accounts receivable from actual write-off for the current period
Item Write-off amount
Accounts receivable from actual written-off 0.00
5. Accounts receivable and contract assets of the top five ending balances by debtors
Proportion
to the total Ending balance of
Ending ending provision for bad
balance Ending balance of balance of debts of accounts
Ending balance of
Entity name of accounts receivable accounts receivable and
accounts receivable
contract and contract assets receivable provision for
assets and contract asset
contract impairment
assets (%)
Shenzhen Power Supply
58955956.8058955956.8046.81
Bureau Co. Ltd.China Machinery
56419011.3056419011.3044.791626964.42
Engineering Corporation
Power China Hubei
4079000.004079000.003.24
Engineering Co. Ltd.Notes to the Financial Statements Page 31Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Proportion
to the total Ending balance of
Ending ending provision for bad
balance Ending balance of balance of debts of accounts
Ending balance of
Entity name of accounts receivable accounts receivable and
accounts receivable
contract and contract assets receivable provision for
assets and contract asset
contract impairment
assets (%)
Shenzhen Petrochemical
Oil Products Bonded 3474613.06 3474613.06 2.76 3474613.06
Trading Co. Ltd.China Solibase
1137145.511137145.510.901137145.51
Engineering Co. Ltd.Total 124065726.67 124065726.67 98.50 6238722.99
(IV) Advances to suppliers
1. Advances to suppliers are listed based on aging
Ending balance Ending balance of previous year
Aging
Book balance Ratio (%) Book balance Ratio (%)
Within 1 year 788948.14 94.32 26780454.52 99.67
1 to 2 years 34000.00 4.06 72700.00 0.27
2 to 3 years
Over 3 years 13502.39 1.61 16021.07 0.06
Total 836450.53 100.00 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 to the
Entity name Book balance
prepayment balance (%)
Bescient Technologies (Shenzhen) Co. Ltd. 209000.00 24.99
Guangzhou Dingyuan Information
99245.2811.87
Technology Co. Ltd.Shenzhen Tongchuang Energy Technology
72065.908.62
Co. Ltd.Hangzhou Motanni Technology Co. Ltd.
65094.347.78
Shenzhen Branch
Guangzhou Zhixunda Information 38877.50 4.65
Notes to the Financial Statements Page 32Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Proportion to the
Entity name Book balance
prepayment balance (%)
Technology Co. Ltd.Total 484283.02 57.90
(V) Other receivables
Ending balance of
Item Ending balance
previous year
Interest receivable
Dividends receivable
Other receivables 19558020.33 19233117.52
Total 19558020.33 19233117.52
1. Other receivables
(1) Disclosure based on aging
Ending balance of
Aging Ending balance
previous year
Within 1 year 1946243.42 1617984.30
1 to 2 years 3356.31
2 to 3 years
Over 3 years 48002435.80 48002435.80
Subtotal 49948679.22 49623776.41
Less: provision for bad debts 30390658.89 30390658.89
Total 19558020.33 19233117.52
(2) Disclosure by category
Ending balance
Book balance Provision for bad debts
Category
Book value
Ratio Provision
Amount Amount
(%) ratio (%)
Provision for bad 30390658.89 60.84 30390658.89 100.00
debts on an individual
Notes to the Financial Statements Page 33Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending balance
Book balance Provision for bad debts
Category
Book value
Ratio Provision
Amount Amount
(%) ratio (%)
basis
Provision for bad
debts on a credit risk 19558020.33 39.16 19558020.33
portfolio basis
Total 49948679.22 100.00 30390658.89 60.84 19558020.33
Ending balance of previous year
Book balance Provision for bad debts
Category
Book value
Ratio Provision
Amount Amount
(%) ratio (%)
Provision for bad
debts on an individual 30390658.89 61.24 30390658.89 100.00
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 on individual provision basis
Ending balance of previous year Ending balance
Name
Provision for Provision for Provision Reasons for
Book balance Book balance
bad debts bad debts ratio (%) provision
Huiyang Kangtai Not expected
14311626.70 14311626.70 14311626.70 14311626.70 100.00 to be
Industrial Company recovered
Receivables from Not expected
employee benefit fund 9969037.63 9969037.63 9969037.63 9969037.63 100.00 to be
dividends and taxes recovered
Shandong Jinan Power Not expected
Equipment Factory 3560000.00 3560000.00 3560000.00 3560000.00 100.00 to be
Co. Ltd. recovered
Receivables from Not expected
purchase of employee 1736004.16 1736004.16 1736004.16 1736004.16 100.00 to be
dormitories recovered
Notes to the Financial Statements Page 34Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending balance of previous year Ending balance
Name
Provision for Provision for Provision Reasons for
Book balance Book balance
bad debts bad debts ratio (%) provision
Not expected
Others 813990.40 813990.40 813990.40 813990.40 100.00 to be
recovered
Total 30390658.89 30390658.89 30390658.89 30390658.89 100.00
* Provision provision for bad debts on a portfolio basis
Ending balance
Name
Provision for bad Provision ratio
Other receivables
debts (%)
Portfolio V: guarantee deposit
3233068.55
and petty cash portfolio
Portfolio VII: other receivables
16324951.78
and temporary payments
Total 19558020.33
(3) Disclosure by nature of payment
Ending book balance of
Nature of payment Ending book balance
previous year
Guarantee and deposit 3110692.41 2869769.32
Receivable from employees 12961807.69 12415545.61
Current accounts with external
33876179.1234338461.48
units
Subtotal 49948679.22 49623776.41
Less: provision for bad debts 30390658.89 30390658.89
Total 19558020.33 19233117.52
(4) Provision for bad debts
Provision for bad The first stage The second stage The third stage Total
Notes to the Financial Statements Page 35Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
debts
Expected credit Expected credit
loss over the life loss over the life
Expected
of the of the
credit losses
instruments (no instruments
over the next
credit (credit
12 months
impairment has impairment has
occurred) occurred)
Beginning balance 30390658.89 30390658.89
Beginning balance in
the current period
- Transfer to the
second stage
- Transfer to the third
stage
- Reversal to the
second stage
- Reversal 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 30390658.89 30390658.89
(5) Provision reversal or recovery of provision for bad debts in the current period
Amount of changes for the current period
Ending
Ending
Category balance of Charge- Others
Reverse or balance
previous year Accrual off or
recovery
write-off
Individual
30390658.8930390658.89
provision
Total 30390658.89 30390658.89
Notes to the Financial Statements Page 36Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
The amount of provision for bad debts reversed or recovered for the current period which is
important
The basis for
determining
Reversed or Reason for
Method of the original
Entity name recovered the reverse or
recovery provision for
amount recovery
bad debts and
its rationality
Total
(6) Other receivables of the top five ending balances by debtors
Proportion
to the total
Nature Ending
ending
of balance of
Entity name Book balance Aging balance of
paymen provision for
other
t bad debts
receivables
(%)
Huidong Xiefu Port
Current Within 1
Comprehensive 15637433.4
account year 1-3 31.31
Development Co. 5
s years
Ltd.Current
Huiyang Kangtai 14311626.7 14311626.7
account Over 3 years 28.65
Industrial Company 0 0
s
Shandong Jinan Current
Power Equipment account 3560000.00 Over 3 years 7.13 3560000.00
Factory Co. Ltd. s
Shenzhen OCT Co.Ltd. Asset
Deposit 1460919.00 Over 3 years 2.92
Management
Branch
Current
Lai Weicheng account 1408866.89 Over 3 years 2.82 1408866.89
s
Total 36378846.0 19280493.5
72.83
49
(VI) Inventories
1. Inventories classification
Notes to the Financial Statements Page 37Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending balance Ending balance of previous year
Provision Provision
for for
inventory inventory
depreciati depreciati
on or on or
Item
Book provision Book Book provision Book
balance for value balance for value
impairmen impairmen
t of t of
contract contract
performan performan
ce costs ce costs
Fuel and spare
134335259.2658226839.2976108419.97144943485.9859223967.8385719518.15
parts
Auxiliary
materials and
low-value 6594987.04 6594987.04 344882.11 344882.11
consumables
etc.Others 1024126.34 1024126.34 93850.90 93850.90
Total 141954372.64 58226839.29 83727533.35 145382218.99 59223967.83 86158251.16
2. Provision for inventory depreciation and provision for impairment of contract
performance costs
Increased amount in Decreased amount in
Ending the current period the current period
Ending
Item balance of
balance
previous year Reverse or
Accrual Others Others
charge-off
Fuel and spare
59223967.83997128.5458226839.29
parts
Total 59223967.83 997128.54 58226839.29
(VII) Contract assets
1. Contract assets
Ending balance Ending balance of previous year
Item Provision Provision
Book
Book balance for bad Book value for bad Book value
balance
debts debts
Project quality 88000.00 88000.00
Notes to the Financial Statements Page 38Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
guarantee
Total 88000.00 88000.00
2. Disclosure by the method of provision for bad debts
Ending balance
Book balance Provision for bad debts
Category
Book value
Ratio Provision
Amount Amount
(%) ratio (%)
Provision for bad debts
on an individual basis
Provision for bad debts
on a credit risk portfolio
basis
Total
Ending balance of previous year
Book balance Provision for bad debts
Category
Book value
Ratio Provision
Amount Amount
(%) ratio (%)
Provision for bad debts
on an individual basis
Provision for bad debts
on a credit risk portfolio 88000.00 100.00 88000.00
basis
Total 88000.00 100.00 88000.00
(VIII) Other current assets
Ending balance of
Item Ending balance
previous year
Large-amount negotiable certificate of deposit
231461407.75225278591.79
and accrued interest
Land acquisition storage production and
business suspension employee compensation 43889714.09
and relocation expenses etc. (Note)
Amount of input value-added tax to be
6583089.98996267.20
deducted
Notes to the Financial Statements Page 39Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending balance of
Item Ending balance
previous year
Prepaid income tax 5894509.31 6583089.98
Others 8019.66 8019.66
Total 287836740.79 232865968.63
Note: according to the latest industrial plan of Cuiheng New District in Zhongshan the Cuiheng
New District Management Committee of Zhongshan City has paid for the storage of three state-
owned land use rights of Shenzhen Nanshan Power Zhongshan Company located in Hengmen
Industrial Zone Nanlang Street Cuiheng New District Zhongshan City. On December 12 2023
Shenzhen Nanshan Power Zhongshan Company formally signed the Agreement on Reclaiming
State-owned Land Use Right and the Relocation Compensation Agreement with Cuiheng New
District Management Committee. On December 18 2023 Shenzhen Nanshan Power Zhongshan
Company had received the first payment of RMB 104000000 from the first tranche of
compensation and on April 10 2024 the company had received the second payment of RMB
71336059.00 from the first tranche of compensation both of which were included in other
current liabilities.According to the progress of land acquisition and storage of Shenzhen Nanshan Power Zhongshan
Company at the end of the reporting period the demolition loss relocation expenses employee
compensation and other expenses incurred by Shenzhen Nanshan Power Zhongshan Company to
perform the land acquisition and storage matters are included to other current assets.Notes to the Financial Statements Page 40Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
(IX) Long-term equity investments
Increase and decrease in the current period
Ending
Ending
balance of Investment
Investees provision Adjustments Other
balance of
Ending balance of profit or loss Declaration of Provision Ending balance
for Additional Reduced to the other changes
provision for
previous year recognized cash dividend for Others
impairment investment investment comprehensive in
impairment
under the equity or profits impairment
income equity
method
1. Associates
Huidong Xiefu
Port
Comprehensive
Development Co. 5167333.30 28062.03 5195395.33
Ltd. (hereinafter
referred to as
"Huidong Xiefu")
Jiangsu Liaoyuan
Environmental
Protection
Technology Co.Ltd. (hereinafter 84833842.74 2400426.35 809700.00 86424569.09
referred to as
"Liaoyuan
Environmental
Protection")
Total 90001176.04 2428488.38 809700.00 91619964.42
Notes to the Financial Statements Page 41Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
(X) Other investments in equity instruments
1. Other investments in equity instruments
Ending balance in the current year Ending balance of previous year
Item
Original book Fair value Original book Fair value
Ending balance Ending balance
value changes value changes
Sunpower
Technology 140000000.00 140000000.00 140000000.00 140000000.00
(Jiangsu) Co. Ltd.Shenzhen Yuanzhi
Ruixin New
Generation
Information
Technology Private 100000000.00 100000000.00 100000000.00
100000000.00
Equity Investments
Fund Partnership
(Limited
Partnership)
Jiangxi Nuclear
60615000.0060615000.0060615000.0060615000.00
Power Co. Ltd.Shenzhen New
Energy Storage
Industry Equity
50000000.0050000000.00
Fund Partnership
(Limited
Partnership)
Shenzhen
Petrochemical Oil
2500000.00-2500000.002500000.00-2500000.00
Products Bonded
Trading Co. Ltd.Total 353115000.00 -2500000.00 350615000.00 303115000.00 -2500000.00 300615000.00
2. Investment in non-trading equity instruments
The Reasons
Accumu Accumul
amount of Reasons for for
Dividend lated ated
other measuring at fair transferrin
income gains losses
comprehe value and whose g other
recognize included included
Item nsive changes are comprehe
d in the in other in other
income recognized in other nsive
current compreh compreh
transferred comprehensive income to
period ensive ensive
to retained income retained
income income
earnings earnings
Sunpower Technology Plan to hold for the
(Jiangsu) Co. Ltd. long term
Shenzhen Yuanzhi
Ruixin New Generation Plan to hold for the 68719.76
Information long term
Technology Private
Notes to the Financial Statements Page 42Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
The Reasons
Accumu Accumul
amount of Reasons for for
Dividend lated ated
other measuring at fair transferrin
income gains losses
comprehe value and whose g other
recognize included included
Item nsive changes are comprehe
d in the in other in other
income recognized in other nsive
current compreh compreh
transferred comprehensive income to
period ensive ensive
to retained income retained
income income
earnings earnings
Equity Investments
Fund Partnership
(Limited Partnership)
Jiangxi Nuclear Power Plan to hold for the
Co. Ltd. long term
Shenzhen New Energy
Storage Industry Equity Plan to hold for the
Fund Partnership long term
(Limited Partnership)
Shenzhen
Petrochemical Oil 250000 Plan to hold for the
Products Bonded 0.00 long term
Trading Co. Ltd.
250000
Total 68719.76
0.00
(XI) Investment properties
1. Investment properties measured using cost model
Item Houses and buildings Total
1. Original book value
(1) Ending balance of previous year 9708014.96 9708014.96
(2) Increased amount in the current period
(3) Reduced amount in the current period
(4) Ending balance 9708014.96 9708014.96
2. Accumulated depreciation and
accumulated amortization
(1) Ending balance of previous year 8043448.36 8043448.36
(2) Increased amount in the current period 83278.38 83278.38
(3) Reduced amount in the current period
Notes to the Financial Statements Page 43Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Item Houses and buildings Total
(4) Ending balance 8126726.74 8126726.74
3. Provision for impairment
(1) Ending balance of previous year
(2) Increased amount in the current period
(3) Reduced amount in the current period
(4) Ending balance
4. Book value
(1) Ending book value 1581288.22 1581288.22
(2) Ending book value of previous year 1664566.60 1664566.60
(XII) Fixed assets
1. Fixed assets and disposal of fixed assets
Ending balance of
Item Ending balance
previous year
Fixed assets 386455266.88 385390614.45
Disposal of fixed assets (Note) 186092119.90 186092119.90
Total 572547386.78 571482734.35
Note: On November 6 2023 Shenzhen Nanshan Power Zhongshan Company received the Letter
on Matters Related to the Shutdown of Units of Shenzhen Nanshan Power (Zhongshan) Power Co.Ltd. Nanlang Power Plant (YNDLH [2023] No. 672) from Energy Bureau of Guangdong Province
according to which the Energy Bureau of Guangdong Province agreed on the shutdown of two
180MW gas-fired cogeneration units of Zhongshan Nanlang Power Plant. The relevant unit
equipment and other assets are planned to be externally disposed of and have been listed on
Shenzhen United Property and Equity Exchange in 2024; In addition according to the latest
industrial plan of Cuiheng New District in Zhongshan the Cuiheng New District Management
Committee of Zhongshan City has paid for the storage of three state-owned land use rights of
Shenzhen Nanshan Power Zhongshan Company located in Hengmen Industrial Zone Nanlang
Street Cuiheng New District Zhongshan City. On December 12 2023 Shenzhen Nanshan Power
Zhongshan Company formally signed the Agreement on Reclaiming State-owned Land Use Right
and the Relocation Compensation Agreement with Cuiheng New District Management Committee.Assets related to this matter such as buildings unit equipment and cogeneration projects under
construction in progress were transferred to the fixed assets to be disposed.Notes to the Financial Statements Page 44Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
2. Fixed assets
Electronic equipment
Item Houses and buildings Machinery equipment Means of transport Total
and other equipment
1. Original book value
(1) Ending balance of previous
294887415.191642954777.936305570.6544463854.921988611618.69
year
(2) Increased amount in the
905836.1510677328.2691582.8711674747.28
current period
-Purchase 91582.87 91582.87
-Transfer construction in
905836.1510677328.2611583164.41
progress
-Others
(3) Reduced amount in the
1074210.0013099.001087309.00
current period
-Disposal or scrapping 1074210.00 13099.00 1087309.00
-Others
(4) Ending balance 294719041.34 1653632106.19 6305570.65 44542338.79 1999199056.97
2. Accumulated depreciation
(1) Ending balance of previous
204203072.711239630165.534715994.1535616644.511484165876.90
year
Notes to the Financial Statements Page 45Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Electronic equipment
Item Houses and buildings Machinery equipment Means of transport Total
and other equipment
(2) Increased amount in the
2276790.506657712.64563987.251002873.5610501363.95
current period
-Provision 2276790.50 6657712.64 563987.25 1002873.56 10501363.95
-Others
(3) Reduced amount in the
966789.0011789.10978578.10
current period
-Disposal or scrapping 966789.00 11789.10 978578.10
-Others
(4) Ending balance 205513074.21 1246287878.17 5279981.40 36607728.97 1493688662.75
3. Provision for impairment
(1) Ending balance of previous
17852047.84100972179.2453176.48177723.78119055127.34
year
(2) Increased amount in the
current period
-Others
(3) Reduced amount in the
current period
Notes to the Financial Statements Page 46Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Electronic equipment
Item Houses and buildings Machinery equipment Means of transport Total
and other equipment
-Disposal or scrapping
---Others
(4) Ending balance 17852047.84 100972179.24 53176.48 177723.78 119055127.34
4. Book value
(1) Ending book value 71353919.29 306372048.78 972412.77 7756886.04 386455266.88
(2) Ending book value of
72832294.64302352433.161536400.028669486.63385390614.45
previous year
Notes to the Financial Statements Page 47Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
3. Fixed assets without the certificate of title
Reasons for failure to acquire the
Item Book value
certificate of title
Circulating water pump workshop 719232.91 Formalities not completed
Cooling tower 673259.25 Formalities not completed
Complex building 443246.19 Formalities not completed
Chemical water treatment workshop 232960.00 Formalities not completed
Cafeteria of complex building 199239.82 Formalities not completed
Mail room at the main entrance 47264.13 Formalities not completed
Buildings (subject to quality progress
865000.00 Formalities not completed
investment and safety control)
Layer addition of office building 347933.80 Formalities not completed
Total 3528136.10
4. Disposal of fixed assets
Ending balance of previous
Item Ending balance
year
Houses and buildings 24723346.08 24723346.08
Machinery equipment 160560314.62 160560314.62
Means of transport 16103.45 16103.45
Construction in progress -
792355.75792355.75
cogeneration projects
Total 186092119.90 186092119.90
Note: For details please see Note V (XII) 1. Fixed assets and disposal of fixed assets to the notes
to the financial statements.(XIII) Construction in progress
1. Construction in progress
Ending balance of
Item Ending balance
previous year
Construction in progress 2488051.21 3448855.10
Total 2488051.21 3448855.10
Notes to the Financial Statements Page 48Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
2. Construction in progress
Ending balance Ending balance of previous year
Provision
Item Provision
Book Book Book for Book
for
balance value balance impairmen value
impairment
t
Oil to gas project 9441286.39 9441286.39 9441286.39 9441286.39
Technical
4060504.041605000.002455504.044080877.621605000.002475877.62
transformation project
Others 32547.17 32547.17 972977.48 972977.48
Total 13534337.60 11046286.39 2488051.21 14495141.49 11046286.39 3448855.10
Notes to the Financial Statements Page 49Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
3. Changes in the current period of important construction in progress
Includi
Proporti
ng: Interest
on of
amount capitali
Amount cumulati
Increased Other Accumulated of zation
Ending transferred to ve Project Sources
Budget amount in decreases in Ending amount of interest rate in
Project name balance of fixed assets in project progres of
amount the current the current balance interest capitali the
previous year the current investm s (%) funds
period period (note) capitalization zation current
period ent to
in the period
budget
current (%)
(%)
period
Self-
Oil to gas project 9441286.39 9441286.39 finance
d
Total 9441286.39 9441286.39
Notes to the Financial Statements Page 50Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
(XIV) Right-of-use assets
1. Right-of-use assets
Item Houses and buildings Total
I. Original book value
1. Beginning balance 16322014.37 16322014.37
2. Increased amount in the current 8696499.48 8696499.48
period
3. Decreased amount in the current
period
4. Ending balance 25018513.85 25018513.85
II. Accumulated depreciation
1. Beginning balance 14055067.95 14055067.95
2. Increased amount in the current
2629300.572629300.57
period
(1) Provision 2629300.57 2629300.57
3. Decreased amount in the current
period
4. Ending balance 16684368.52 16684368.52
III. Provision for impairment
IV. Book value
1. Ending book value 8334145.33 8334145.33
2. Beginning book value 2266946.42 2266946.42
Note: the right-of-use assets in the current period refer to the Company's operating lease of the 16-
17th floors of Hantang Building Property for office use.
(XV) Intangible assets
1. Intangible assets
Land use
Item Patent Software Total
right
1. Original book value
(1) Ending balance of
60813994.76138625.073858558.72
previous year 64811178.55
(2) Increased amount in the
1276094.301276094.30
current period
-Purchase 1276094.30 1276094.30
Notes to the Financial Statements Page 51Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Land use
Item Patent Software Total
right
(3) Reduced amount in the
current period
-Others
(4) Ending balance 138625.07 5134653.02
60813994.7666087272.85
2. Accumulated amortization
(1) Ending balance of
41785841.5949165.103690542.83
previous year 45525549.52
(2) Increased amount in the
3295.568673.72160105.57172074.85
current period
-Provision 3295.56 8673.72 160105.57 172074.85
(3) Reduced amount in the
current period
—Disposal
(4) Ending balance 57838.82 3850648.40
41789137.1545697624.37
3. Provision for impairment
(1) Ending balance of
previous 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 80786.25 1284004.62
19024857.6120389648.48
(2) Ending book value of
89459.97168015.89
previous year 19028153.17 19285629.03
Notes to the Financial Statements Page 52Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
2. Land use right without the certificate of title
Reasons for failure to
Item Book value acquire the certificate
of title
Land use rights for docks and pipeline Formalities not
372219.18
corridors completed
Total 372219.18
(XVI) Long-term deferred expenses
Ending Increased Amortization
balance of amount in amount in Other Ending
Item
previous the current the current reductions balance
year period period
Renovation costs 721798.06 226120.83 495677.23
Major repair
3170034.87529332.996185188.16
expenses 3544486.28
Total 3891832.93 755453.82 6680865.39
3544486.28
(XVII) Deferred tax assets and deferred tax liabilities
Deferred tax assets not offset
Ending balance of previous
Ending balance
year
Item Deductible Deductible
temporary Deferred tax Deferred tax temporary
assets assets
difference differences
Provision for bad debts 3649109.93 547366.49 3649109.93 547366.49
Fair value changes of other
investments in equity 2500000.00 625000.00 2500000.00 625000.00
instruments
Total 6149109.93 1172366.49 6149109.93 1172366.49
(XVIII) Other non-current assets
Notes to the Financial Statements Page 53Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending balance of
Item Ending balance
previous year
Relevant expenses for functional
substitution of Nanshan Power Plant and
857135.8436157735.24
land acquisition and storage payment of
Zhongshan Company (Note)
Project quality guarantee 42439.87
Total 899575.71 36157735.24
Note: according to the progress of land acquisition and storage of Shenzhen Nanshan Power
Zhongshan Company at the end of the reporting period the relevant expenses of land acquisition
and storage of Shenzhen Nanshan Power Zhongshan Company and the suspension and withdrawal
of unit assets have been included to other current assets. See Note V. (VIII) to the notes to the
financial statements.(XIX) Assets with restricted ownership or use rights
Ending balance Ending balance of previous year
Item Restri Restri
Book Restri Book Restric
Book value cted Book value cted
balance ctions balance tions
type type
monetary guarant guarant
2800000.00 2800000.00 Freeze 5453862.93 5453862.93 Freeze
funds ee ee
Total 2800000.00 2800000.00 5453862.93 5453862.93
(XX) Short-term borrowings
Ending balance of
Item Ending balance
previous year
Credit loan 400773375.35 270933506.37
Pledge loan 70000000.00 70000000.00
Accrued interest on short-term borrowings 170851.53 304380.35
Total 470944226.88 341237886.72
Note: the Company used its own patent rights pledge a loan of RMB 70 million from Shanghai
Pudong Development Bank Shenzhen Branch.(XXI) Accounts payable
1. Accounts payable
Ending balance of
Item Ending balance
previous year
Notes to the Financial Statements Page 54Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending balance of
Item Ending balance
previous year
Labor and service payments 6588396.76 3435338.05
Fuel payment 5434676.78 10175.58
Electricity bill 1406328.02 896652.87
Total 13429401.56 4342166.50
At the end of the reporting period the Company had no significant accounts payable with an aging
of more than one year.
2. Top five accounts payable
Proportion to the
entity name Book balance accounts payable
balance (%)
Shenzhen Gas Group Co. Ltd. 5427996.78 40.42
Hangzhou Xingyuan Installation Co.
3028840.5022.55
Ltd.Yotai Digital Energy Technology
2614030.2319.46
(Shenzhen) Co. Ltd.Shenzhen Power Supply Bureau Co. Ltd. 1406328.02 10.47
Dongguan Xinda Gas Co. Ltd. 397100.00 2.96
Total 12874295.53 95.86
(XXII) Contract liabilities
Ending balance of previous
Item Ending balance
year
Advances from labor and services 119549.51
Total 119549.51
(XXIII) Employee compensation payable
1. Employee compensation payable
Ending balance Increased Decreased
Ending
Item of previous amount in the amount in the
balance
year current period current period
Notes to the Financial Statements Page 55Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending balance Increased Decreased
Ending
Item of previous amount in the amount in the
balance
year current period current period
Short-term compensation 14000126.57 41888525.56 51319791.26 4568860.87
Post-employment benefits-
6428265.396428265.39
defined contribution plans
Dismissal benefits (note) 32238856.00 32238856.00
Other benefits due within
one year
Total 46238982.57 48316790.95 89986912.65 4568860.87
Note: For the employee compensation related to the land acquisition and storage of Zhongshan
Company see Note V. (VIII) for explanation.
2. Short-term compensation
Ending balance Increased Decreased
Ending
Item of previous amount in the amount in the
balance
year current period current period
(1) Salaries bonuses
13904838.474475667.17
allowances and subsidies 29355185.25 38784356.55
(2) Employee welfare fees 4853580.86 4853580.86
(3) Social insurance
2257920.672257920.67
premiums
Including: medical
1852201.531852201.53
insurance premiums
Work injury insurance
219201.98219201.98
premium
Maternity insurance
186517.16186517.16
premium
(4) Housing provident fund 4699196.44 4699196.44
(5) Trade union funds and
employee education 95288.10 722642.34 724736.74 93193.70
expenses
(6) Short-term paid absence
from work
(7) Short-term profit sharing
plan
Notes to the Financial Statements Page 56Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending balance Increased Decreased
Ending
Item of previous amount in the amount in the
balance
year current period current period
(8) Others
Total 14000126.57 4568860.87
41888525.5651319791.26
3. Defined contribution plans list
Ending balance Increased Decreased
Ending
Item of previous amount in the amount in the
balance
year current period current period
basic endowment insurance 5285998.55 5285998.55
Unemployment insurance
317219.04317219.04
premiums
Enterprise annuity payment 752598.00 752598.00
Others 72449.80 72449.80
Total 6428265.39 6428265.39
(XXIV) Taxes payable
Ending balance of
Tax items Ending balance
previous year
Value-added tax 2856221.11 2282514.44
Property tax 1142905.17
Land use tax 456129.42
Personal income tax 370828.18 620879.50
Stamp duty 36750.00 160105.10
Urban maintenance and construction tax 352.64 15063.61
Education surcharge 151.13 6404.48
Local education surcharge 100.75 4346.16
Other taxes 17.18
Total 4863438.40 3089330.47
Notes to the Financial Statements Page 57Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
(XXV) Other payables
Ending balance of
Item Ending balance
previous year
Interest payable
Dividends payable
Other payables 15699302.91 13973447.42
Total 15699302.91 13973447.42
1. Other payables
(1) Presented according to nature of payment
Ending balance of
Item Ending balance
previous year
Security deposit 8751355.44 8993154.68
Labor and service fees 2336327.97 1522715.43
Others 4611619.50 3457577.31
Total 15699302.91 13973447.42
(2) Top five other payables
Proportion to the
entity name Book balance other accounts
payable balance (%)
Shenzhen Nangang Power Engineering
4873983.0031.05
Co. Ltd.Guangzhou Zike Environmental
1872500.0011.93
Protection Technology Co. Ltd.Shanghai Power Equipment Research
1773515.0211.30
Institute Co. Ltd.Zhongshan Nanlang Construction
860190.125.48
Development Co. Ltd.Shenzhen Zhonghang Decoration Group
662877.824.22
Co. Ltd.Total 10043065.96 63.98
(XXVI) Non-current liabilities due within one year
Notes to the Financial Statements Page 58Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending balance of
Item Ending balance
previous year
Long-term borrowings due within one
27525963.501399170.93
year
Lease liabilities due within one year 4291942.82 2556609.50
Less: unrecognized financing expenses 213106.03 29453.98
Total 31604800.29 3926326.45
(XXVII) Other current liabilities
Ending balance of
Item Ending balance
previous year
Progress payment for land acquisition and
175336059.00
storage (Note)
Value-added tax pending charge-off 89136.71
Total 175425195.71
Note: according to the progress of land acquisition and storage of Shenzhen Nanshan Power
Zhongshan Company the progress payment of land acquisition and storage of Shenzhen Nanshan
Power Zhongshan Company has been presented to other current liabilities at the end of the
reporting period. See Note V. (VIII) of the notes to the financial statements for the explanation.(XXVIII) Long-term borrowings
Ending balance of
Item Ending balance
previous year
Credit loan 58829426.30
Total 58829426.30
(XXIX) Lease liabilities
1. Lease liabilities details
Ending balance of
Item Ending balance
previous year
lease liabilities 4713898.09
Less: unrecognized financing expenses 73407.09
Total 4640491.00 -
2. Lease liabilities maturity analysis
Notes to the Financial Statements Page 59Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending balance of
Item Ending balance
previous year
1-2 years 4640491.00
Total 4640491.00
(XXX) Estimated liabilities
Increased
Ending Decreased
amount in Ending
Item balance of amount in the Causes
the current balance
previous year current period
period
Others 15000000.00 15000000.00
Total 15000000.00 15000000.00
Note: on November 29 2013 Shenzhen Xiefu and Jiahua Construction Products (Shenzhen) Co.Ltd. ("Jiahua Construction") signed a supplementary agreement to the equity transfer agreement in
respect of the historical issues in relation to the vesting and division of interests in Yapojiao Wharf
between Shenzhen Xiefu Huidong Xiefu and the Huidong Renshan Town Government and its
subordinate Renshan Group. In order to solve the historical issues Shenzhen Xiefu deposited
RMB 12500000.00 into the escrow account as guarantee. In addition Shenzhen Xiefu pledged its
20% equity interest in Huidong Xiefu to Jiahua Construction for a period of two years and the
amount of the pledge secured claim was not more than 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 relevant parties reached a preliminary
settlement agreement on the land dispute matter in estimated liabilities. Shenzhen Xiefu
accordingly reversed the estimated liabilities by RMB 6584816.78. In 2020 Shenzhen Xiefu
borne the lawyer and other expenses of RMB 137731.22 for this matter according to the agreed
ratio and the estimated liabilities decreased by a total of 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 Shenzhen Xiefu received a refund of RMB
5000000.00 from the co-managed account. Shenzhen Xiefu accordingly reversed the estimated
liabilities by RMB 4573508.28. In 2021 Shenzhen Xiefu borne the lawyer and other expenses of
RMB 350000 for this matter according to the agreed ratio and the estimated liabilities decreased
by a total of RMB 4923508.28 in 2021. The balance of RMB 15000000.00 is the repayment
obligation that is likely to occur before the above matters are completed.(XXXI) Deferred income
Increased Decreased
Ending
amount in amount in the Ending
Item balance of Causes
the current current balance
previous year
period period
Notes to the Financial Statements Page 60Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Increased Decreased
Ending
amount in amount in the Ending
Item balance of Causes
the current current balance
previous year
period period
Government
67869348.073173447.4564695900.62
subsidies (Note)
Total 67869348.07 3173447.45 64695900.62
Note: the amount of government subsidies included in the current profit or loss is detailed in Note
VI (II) to the financial statements.(XXXII) Other non-current liabilities
Ending balance of
Item Ending balance
previous year
Progress payment for land acquisition and
104000000.00
storage (Note)
Interests of other partners in the
45112.5445112.54
partnership
Total 45112.54 104045112.54
Note: according to the progress of land acquisition and storage of Shenzhen Nanshan Power
Zhongshan Company the progress payment of land acquisition and storage of Shenzhen Nanshan
Power Zhongshan Company has been presented to other current liabilities at the end of the
reporting period. See Note V. (VIII) of the notes to the financial statements for the explanation.(XXXIII) Equity
Increase (+) and decrease (-) in the current period
Ending balance
Item of previous Issuance Provident Ending balance
Bonus
year of new fund Others Subtotal
shares
shares conversion
Total
602762596.00602762596.00
shares
(XXXIV) Capital reserves
Ending balance Increased Decreased
Item of previous amount in the amount in the Ending balance
year current period current period
Capital premium (equity
233035439.62233035439.62
premium)
Notes to the Financial Statements Page 61Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending balance Increased Decreased
Item of previous amount in the amount in the Ending balance
year current period current period
Other capital reserve 129735482.48 129735482.48
Total 362770922.10 362770922.10
Notes to the Financial Statements Page 62Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
(XXXV) Other comprehensive income
Current period
Less: Less:
recognized in recognized in
Amount other other
Ending
before comprehensive comprehensive
balance of Beginning Less: Attributable Attributable Ending
Item income income in the income in the
previous balance income to parent to minority balance
tax for previous previous
year tax company shareholders
the period and period and
expenses after tax after tax
current transferred to transferred to
period profit or loss retained
in the current earnings in the
period 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 equity
2500000.002500000.002500000.00
instruments
Notes to the Financial Statements Page 63Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Current period
Less: Less:
recognized in recognized in
Amount other other
Ending
before comprehensive comprehensive
balance of Beginning Less: Attributable Attributable Ending
Item income income in the income in the
previous balance income to parent to minority balance
tax for previous previous
year tax company shareholders
the period and period and
expenses after tax after tax
current transferred to transferred to
period profit or loss retained
in the current earnings in the
period current period
Total other comprehensive - - -
income 2500000.00 2500000.00 2500000.00
Notes to the Financial Statements Page 64Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
(XXXVI) Special reserves
Ending Increased Decreased
Ending
Item balance of amount in the amount in the
balance
previous year current period current period
Safety production costs 2811200.91 1324352.45 1486848.46
Total 2811200.91 1324352.45 1486848.46
Note: in accordance with the Management Measures for the Withdrawal and Use of Enterprise
Safety Production Costs (CZ [2022] No. 136) (released on December 12 2022) the Company
withdrew safety production costs and included them in the current profit or loss and transferred
them to special reserve at the same time.(XXXVII) Surplus reserves
Ending balance Increased Decreased
Item of previous amount in the amount in the Ending balance
year current period current period
Statutory surplus
310158957.87310158957.87
reserve
Discretionary surplus
22749439.7322749439.73
reserve
Total 332908397.60 332908397.60
(XXXVIII) Undistributed profits
Ending balance of
Item Ending balance
previous year
Undistributed profits at the end of last year before
163346776.24159187979.14
adjustments
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
163346776.24159187979.14
after adjustments
Plus: net profit attributable to owners of parent
-37851109.904158797.10
company for the current period
Less: withdrawal of statutory surplus reserve
Dividends payable on ordinary shares
Ending undistributed profits 125495666.34 163346776.24
Notes to the Financial Statements Page 65Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
(XXXIX) Operating revenue and operating costs
Current period Previous period
Item
revenue Cost revenue Cost
Main business 187206813.92 180267125.57 270628454.23 285268563.82
Other business 697450.79 83278.38 639730.82 99366.08
Total 187904264.71 180350403.95 271268185.05 285367929.90
1. Breakdown by product or service type
Current period Previous period
Item
revenue Cost revenue Cost
Power production
182701860.97178403013.82260794861.20281263633.98
and sale
Integrated energy
4504952.951864111.759833593.034004929.84
service
Others 697450.79 83278.38 639730.82 99366.08
Total 187904264.71 180350403.95 271268185.05 285367929.90
2. By region
Current period Previous period
Item
revenue Cost revenue Cost
Domestic 187904264.71 180350403.95 271268185.05 285367929.90
Total 187904264.71 180350403.95 271268185.05 285367929.90
3. Revenue broken down by time of transfer of goods or services
Item Current period Previous period
Recognize revenue at a certain time
183399311.76261434592.02
point
Recognize revenue at a certain time
4504952.959833593.03
point
Total 187904264.71 271268185.05
Notes to the Financial Statements Page 66Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
(XL) Taxes and surcharges
Item Current period Previous period
Property tax 878745.93 961121.19
Land use tax 305752.50 376969.53
Urban maintenance and construction tax 218338.44 323664.43
Stamp duty 121268.67 150371.40
Education surcharge 93573.61 136671.47
Local education surcharge 62382.40 91114.32
Environmental protection tax 7974.74 714.26
Vehicle and vessel tax 360.00 1080.00
Total 1688396.29 2041706.60
(XLI) Selling and distribution expenses
Item Current period Previous period
Employee compensation 1231401.93 683687.41
Agency fee 277424.53 17924.52
Entertainment expenses 55369.70 60438.80
Others 44948.73 135657.09
Total 1609144.89 897707.82
(XLII) G&A expenses
Item Current period Previous period
Employee compensation 22381477.28 16678744.54
Depreciation cost 3506184.76 2869544.54
Rental fees 2636120.57 3116499.10
Agency fee 786977.48 1040133.44
Property management fee 771883.89 491101.02
Entertainment expenses 562297.27 709926.13
Notes to the Financial Statements Page 67Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Item Current period Previous period
Vehicle expenses 390789.84 128763.36
Communication expenses 377172.45 381621.13
Travel expenses 327219.49 304075.94
Environmental protection fee 318601.76 63096.10
Fees of Board of Directors 197914.04 227754.47
Amortization of intangible assets 166886.35 31717.80
Office expenses 139670.26 195789.57
Repair costs 105850.09 359247.29
Stock related fee 81111.77 19713.42
Others 3896136.61 7895474.87
Total 36646293.91 34513202.72
(XLIII) R&D expenses
Item Current period Previous period
Employee compensation 12068981.04 11392275.80
Depreciation cost 3040458.21 969806.88
Others 7423.50 935843.63
Total 15116862.75 13297926.31
(XLIV) Financial expenses
Item Current period Previous period
Interest costs 7897040.69 9582105.76
Less: interest income 2338321.70 3020964.70
Exchange losses (“-” for gains) -37606.16 -199804.29
Handling charges 168779.49 203183.08
Unrecognized amortization of financing
52282.29165845.27
expenses
Total 5742174.61 6730365.12
Notes to the Financial Statements Page 68Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
(XLV) Other benefits
1. Details of other income
Item Current period Previous period
government subsidies 3578045.23 3990464.54
Personal tax handling charges refund 34481.46 74806.72
Total 3612526.69 4065271.26
2. Government subsidies included in other income
See Note VI (II) to the financial statements for the amount of government subsidies included in
other income in the current period.(XLVI) Investment income
Item Current period Previous period
Investment income from financial assets
6510401.509342507.91
held for trading during the holding period
Income from long-term equity
investments accounted for equity method 2428488.38 1643156.49
under the equity method
Dividend income received from
investments in equity instruments during 68719.76 8740206.13
the holding period
Total 9007609.64 19725870.53
(XLVII) Losses from credit impairment
Item Current period Previous period
Losses from bad debts of accounts
receivable
Loss from bad debts of other receivables
Total
(XLVIII) Asset impairment loss
Item Current period Previous period
Inventory depreciation losses and
impairment losses from contract
Notes to the Financial Statements Page 69Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Item Current period Previous period
performance costs
Impairment loss of fixed assets
Impairment loss of construction in
progress
Total
(XLIX) Gains from disposal of assets
Amount included
in non-recurring
Item Current period Previous period gains and losses
in the current
period
Profit or loss on disposal of non-
111895.22
current assets
Total 111895.22
(L) Non-operating revenue
Amount included
in non-recurring
Item Current period Previous period gains and losses
in the current
period
Compensation for power outage
4767828.93
and insurance
Subsidies for house demolition
75461.40226384.2475461.40
and resettlement
Total 75461.40 4994213.17 75461.40
(LI) Non-operating expenses
Amount included
in non-recurring
Item Current period Previous period
gains and losses in
the current period
Losses from damage or scrapping
108730.905873.61108730.90
of non-current assets
Others 334.71
Notes to the Financial Statements Page 70Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Amount included
in non-recurring
Item Current period Previous period
gains and losses in
the current period
Total 108730.90 6208.32 108730.90
(LII) Income tax expenses
Income tax expenses schedule
Item Current period Previous period
Current income tax expenses 479.55
Deferred income tax expenses
Total 479.55
(LIII) 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 Current period Previous period
Consolidated net profit attributable to ordinary
-37851109.90-37240739.56
shareholders of the parent company
Weighted average of outstanding ordinary shares
602762596.00602762596.00
of the Company
basic earnings per share -0.0628 -0.0618
2. Diluted earnings per share
Item Current period Previous period
Consolidated net profit attributable to ordinary
-37851109.90-37240739.56
shareholders of the parent company (diluted)
Weighted average of outstanding ordinary shares
602762596.00602762596.00
of the Company (diluted)
Diluted earnings per share -0.0628 -0.0618
(LIV) Statement of cash flows items
Notes to the Financial Statements Page 71Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
1. Cash related to operating activities
(1) Cash received from other operating activities
Item Current period Previous period
Interest income 2288271.75 5037876.59
Income from government subsidies 241800.00 693966.28
Current accounts received etc. 14602512.23 6564756.22
Total 17132583.98 12296599.09
(2) Other cash paid related to operating activities
Item Current period Previous period
Expenses from payment period 20583772.82 17969237.13
Current accounts paid etc. 683355.92 410000.00
Total 21267128.74 18379237.13
2. Cash related to investing activities
(1) Other cash received related to investing activities
Item Current period Previous period
Received interest on current accounts among
related parties
Total
(2) Other cash paid related to investing activities
Item Current period Previous period
Deposit of financial assets held for trading and
181000000.0050000000.00
large certificates of deposit for cash payments
Total 181000000.00 50000000.00
3. Cash related to financing activities
(1) Other cash received from other financing activities
Item Current period Previous period
Notes to the Financial Statements Page 72Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Item Current period Previous period
Total
(2) Other cash paid related to financing activities
Item Current period Previous period
Note deposit 2800000.00 5440434.23
Payment for principal and interest of lease
2684440.00
liabilities
Total 5484440.00 5440434.23
(LV) Supplementary information of Statement of Cash Flows
1. Supplementary information of Statement of Cash Flows
Supplementary information Current period Previous period
1. Adjusting net profit to cash flows from operating
activities
Net profit -40662144.86 -42690091.11
Plus: losses from credit impairment
Provision for asset impairment
Depreciation and amortization of investment
83278.3884388.80
properties
Depreciation of fixed assets 10501363.95 13874121.49
Depreciation of right-of-use assets 2629300.57 2720335.74
amortization of intangible assets 172074.85 344926.02
amortization of long-term deferred expenses 755453.82 248665.56
Amortization of deferred income -3173447.45 -3178964.54
Losses from disposal of fixed assets intangible
-111895.22
assets and other long-term assets (“-” for gains)
Losses on write-off of fixed assets (“-” for gains) 108730.90 5873.61
Losses from changes in fair value (“-” for gains)
Financial expenses (“-” for gains) 5742174.61 11768338.22
Notes to the Financial Statements Page 73Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Supplementary information Current period Previous period
Investment losses (“-” for gains) -9007609.64 -19725870.53
Decrease in deferred tax assets (“-” for increases)
Increase in deferred tax liabilities (“-” for
decreases)
Decrease in inventories (“-” for increases) 2430717.81 283099.78
Decrease in operating receivables (“-” for
-36060439.41-22241067.45
increases)
Increase in operating payables (“-” for decreases) 13484055.04 1601650.09
Others
Net cash flows from operating activities -52996491.43 -57016489.54
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
fixed assets acquired under financial lease
3. Net changes in cash and cash equivalents
Ending balance of cash 309726567.91 260399636.35
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 -1008351.65 -387622035.71
2. Composition of cash and cash equivalents
Ending balance
Item Ending balance
of previous year
I. Cash 309726567.91 310734919.56
Including: cash on hand 30227.42 30329.83
Bank deposits readily available for payment 308882584.66 310694227.98
Other monetary funds readily available for payment 813755.83 10361.75
Notes to the Financial Statements Page 74Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending balance
Item Ending balance
of previous 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 309726567.91 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 classified as
Item Current period Previous period
cash and cash
equivalents
L/G deposit 2800000.00 5440434.23 Frozen restricted
deposit for bank acceptance bills 27474594.34 Frozen restricted
Total 2800000.00 32915028.57
(LVI) Assets with restricted ownership or right of use
Item Ending book value Reason for restriction
Monetary funds 2800000.00 L/G deposit
Total 2800000.00
(LVII) Foreign currency monetary items
1. Foreign currency monetary items
Ending foreign Conversion Ending converted
Item
currency balance exchange rate RMB balance
Monetary funds
Including: USD 840420.61 7.1268 5989509.59
Notes to the Financial Statements Page 75Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending foreign Conversion Ending converted
Item
currency balance exchange rate RMB balance
EUR 1017.87 7.6617 7798.62
HKD 167411.74 0.9127 152793.37
SGD 3153.03 5.2790 16644.85
(LVIII) Lease
1. The Company serves as the Lessee
Item Current period Previous period
Interest expenses on lease liabilities 52282.29 165845.27
Total cash outflow related to lease 2556609.50 2946188.55
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
Item Lease income variable lease payments not
included in lease receipts
House lease 697450.79
Total 697450.79
IV. R&D expenditures
Item Current period Previous period
Employee compensation 12068981.04 11392275.80
Depreciation and amortization costs 3040458.21 969806.88
Repair costs 919704.23
Royalties 2235.00 10950.66
Others 5188.50 5188.74
Total 15116862.75 13297926.31
Notes to the Financial Statements Page 76Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Item Current period Previous period
Including: expensed R&D
15116862.7513297926.31
expenditures
Total 15116862.75 13297926.31
V. Equity in other entities
(I) Equity in subsidiaries
1. Composition of enterprise group
Shareholding
Main
ratio (%) Acquisition
Name of subsidiary place of
method
business
Direct Indirect
Shenzhen Nanshan Power (Zhongshan) Power
Zhongshan 80.00 Establishment
Co. Ltd.Shenzhen Nanshan Power Gas Turbine
Shenzhen 100.00 Establishment
Engineering Technology (Shenzhen) Co. Ltd.Shenzhen Nanshan Power Environmental
Shenzhen 100.00 Establishment
Protection (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
Zhuhai 99.96 Establishment
Partnership (Limited Partnership)
2. Important non-wholly owned subsidiaries
Profit or loss
Shareholding
attributable to
ratio of Ending balance
minority
Name of subsidiary minority of minority
shareholders in
shareholders interests
the current
(%)
period
Shenzhen Nanshan Power (Zhongshan)
20-1876061.54-108275342.25
Power Co. Ltd.Notes to the Financial Statements Page 77Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
3. Main financial information of important non-wholly owned subsidiaries
Ending balance/RMB Ending balance of previous year/RMB
Name of
Non- Non- Non- Non-
subsidiary Current Total Current Total Current Total Current Total
current current current current
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Shenzhen
Nanshan Power
(Zhongshan)
Power Co. Ltd.
52269274.86208097428.93260366703.79801743415.03-801743415.0324201215.36244116938.96268318154.32696314557.88104000000.00800314557.88
(Shenzhen
Nanshan Power
Zhongshan
Company)
Current period/RMB Previous period/RMB
Name of
Total Total
subsidiary Operating Cash flows from Operating Cash flows from
Net profit comprehensiv Net profit comprehensive
revenue operating activities revenue operating activities
e income income
Shenzhen Nanshan Power
(Zhongshan) Power Co. Ltd.
11033515.24-9380307.68-9380307.68-34505641.1343549971.34-23988910.88-23988910.88-1700627.90
(Shenzhen Nanshan Power
Zhongshan Company)
Notes to the Financial Statements Page 78Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
(II) Equity in joint venture arrangements or associates
1. Significant joint ventures or associates
Shareholding ratio Accounting
Main (%) treatments for
Name of joint Main business
place of investments in joint
ventures or associates activities
business ventures or
Direct Indirect
associates
Renshan
Town Terminal
Huidong Xiefu 40.00 equity method
Huidong operations
County
Liaoyuan
Yixing environmental
Environmental 9.935 equity method
Jiangsu protection
Protection (note)
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 consists of five directors. The Company appointed one director on
March 12 2022 which has a significant impact on Liaoyuan Environmental Protection.
2. Main financial information of significant joint ventures or associates
Ending balance of previous
Ending balance/Current period
year/Previous period
Liaoyuan Liaoyuan
Huidong Huidong
Environmental Environmental
Xiefu Xiefu
Protection Protection
Current assets 556477861.67 9818899.24 545635587.61 9376533.54
Non-current assets 408458430.21 8946052.32 419944510.12 9354277.78
Total assets 964936291.88 18764951.56 965580097.73 18730811.32
Current liabilities 174170502.32 36531068.89 198836634.15 36567083.73
Non-current liabilities 25471765.00 26202854.57
Total liabilities 199642267.32 36531068.89 225039488.72 36567083.73
Minority interests 232211556.33 223928134.66
Equity attributable to
--
shareholders of the 533082468.22 516612474.35
17766117.3317836272.41
parent company
Notes to the Financial Statements Page 79Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending balance of previous
Ending balance/Current period
year/Previous period
Liaoyuan Liaoyuan
Huidong Huidong
Environmental Environmental
Xiefu Xiefu
Protection Protection
Net asset share
calculated based on 52961743.22 -7106446.93 51325449.33 -7134508.96
shareholding ratio
Adjustments 33462825.87 12301842.26 33508393.41 12301842.26
-Others 33462825.87 12301842.26 33508393.41 12301842.26
Book value of equity
investments in 86424569.09 5195395.33 84833842.74 5167333.30
associates
Fair value of equity
investments in
associates with publicly
quoted prices
Operating revenue 290020271.67 2425109.98 303498169.30 4152124.26
Net profit 35511384.03 70155.08 29264974.12 836998.72
Net profit attributable to
shareholders of the 24779256.21 70155.08 25136762.60 836998.72
parent company
Net profit from
discontinued operations
Other comprehensive
income
Total comprehensive
24779256.2170155.0825136762.60836998.72
income
Dividends received from
associates in the current 809700.00 1214550.00
period
VI. Government subsidies
(I) Liability items involving government subsidies
Liabilities Ending New Amount Amount Other Related Ending
balance of subsidy included in transferred changes to
Notes to the Financial Statements Page 80Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
previous year amount in non- to other in the balance assets/in
the current operating income in current come
period revenue in the current period
the current period
period
Deferred Asset
67869348.073173447.4564695900.62
income related
Total 67869348.07 3173447.45 64695900.62
The details of the projects involving government subsidies are as follows:
Amount
Ending balance New subsidy recognized in Asset
Other
Item of previous amount in the profit or loss in Ending balance related/income
changes
year current period the current related
period
Shenzhen air quality
44598351.64 2365909.13 42232442.51 Asset related
improvement subsidy
Government subsidies
for low-nitrogen 18376607.94 229384.08 18147223.86 Asset related
equipment renovation
Funding for Carbon
Peak Support Program
Industrial Energy
1642500.00 273750.00 1368750.00 Asset related
Conservation and
Comprehensive
Utilization Project
Special funds for
promoting high-quality 1125000.00 187500.00 937500.00 Asset related
industrial development
Circular economy
support fund for sludge 945979.59 64290.90 881688.69 Asset related
drying project
Funds for technological
transformation and
917388.90 35333.34 882055.56 Asset related
investment projects in
Motor energy
efficiency
263520.00 17280.00 246240.00 Asset related
improvement subsidy
scheme
Total 67869348.07 3173447.45 64695900.62
(II) Government subsidies included in the current profit or loss
Subsidy project Current period Previous period
Other benefits 3578045.23 3990464.54
non-operating revenue
Total 3578045.23 3990464.54
Notes to the Financial Statements Page 81Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Details of government subsidies included in other income are as follows:
Asset
Subsidy project Current period Previous period related/income
related
Shenzhen air quality improvement
2365909.13 2365909.08 Asset related
subsidy
Treasury bond subsidy for sludge drying
64290.90 323501.46 Asset related
project
Green and low-carbon development Income
300000.00
project grants related
Science and technology innovation Income
296500.00
voucher related
Low nitrogen project renovation grants 229384.08 252422.00 Asset related
Circular economy support fund for
127500.00 Asset related
sludge drying project
Income
Stable employment subsidy 3197.78 115000.00
related
National high-tech enterprise doubling Income
100000.00
program related
Special funds for energy conservation
57018.66 Asset related
and emission reduction
Funds for technological transformation
35333.34 35333.34 Asset related
and investment projects in 2021-2022
Motor energy efficiency improvement
17280.00 17280.00 Asset related
subsidy scheme
Income
Special funds for industrial development 20000.00
related
Special funds for promoting high-quality
187500.00 Asset related
industrial development
Special funds for promoting high-quality
Income
industrial development in Nanshan 241800.00
related
District
Supporting funds for industrial energy
conservation and comprehensive
273750.00 Asset related
utilization projects in the carbon peak
support plan
Funding project for promoting the 139600.00 Income
continuous and smooth operation of
Notes to the Financial Statements Page 82Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Asset
Subsidy project Current period Previous period related/income
related
industries above designated size related
Total 3578045.23 3990464.54
VII. 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:
(I) 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.(II) 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.(III) 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.Notes to the Financial Statements Page 83Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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 June 30 2024 the Company's bank borrowings with floating interest rate totaled RMB
1961625.26. 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 Impact on
Impact on profits Impact on profits
shareholders' equity shareholders' equity
Increase of 5% -98081.26 -98081.26 -82238.69 -82238.69
Decrease of 5% 98081.26 98081.26 82238.69 82238.69
(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.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 Ending balance of previous year
Item Other Other
USD foreign Total USD foreign Total
currencies currencies
Monetar 5989509.5 177236.8 6166746.4 5931199.1 188141.1 6119340.2
y funds 9 4 3 0 7 7
5989509.5177236.86166746.45931199.1188141.16119340.2
Total
943077
As of June 30 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 308337.32. The Management believes that 5% reasonably reflects the reasonable range
of possible changes in RMB against foreign currencies in the following year.VIII. 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
Notes to the Financial Statements Page 84Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
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 June 30 2024
Fair value as at June 30 2024
Item Measured at the Measured at Measured at the
fair value of level the fair value fair value of Total
1 of level 2 level 3
Continuous measurement at fair value
Financial assets held for trading 273000000.00 273000000.00
Other investments in equity instruments 350615000.00 350615000.00
Total assets with continuous measurement
623615000.00623615000.00
at fair value
2. Basis for determining the market price of items measured at the fair value of level 3 on a
continuing and non-continuous basis
For financial instruments that are not traded in the active market the Company uses valuation
techniques to determine their fair values. 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.IX. Related parties and related transactions
(I) 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.(II) Information on the Company's subsidiaries
For details of the Company's subsidiaries please refer to "V (I) Interests in subsidiaries".(III) 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 "V (II)
Equity in joint venture arrangements or associates".(IV) Information on other related parties
Relationship between other related
Name of other related parties
parties and the Company
Shenzhen Energy Corporation (hereinafter referred to Legal person holding more than 5% of
as "Energy Corporation") the Company's shares
Legal person holding more than 5% of
Shenzhen Guangju Industrial Co. Ltd.the Company's shares
Notes to the Financial Statements Page 85Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Relationship between other related
Name of other related parties
parties and the Company
Legal person holding more than 5% of
HONG KONG NAM HOI (INTERNATIONAL) LTD
the Company's shares
Legal person that indirectly holds more
Shenzhen Capital Holdings Co. Ltd. than 5% of the Company's shares
through Energy Corporation
Sun Huirong a director who left the
Artron Art (Group) Co. Ltd. Company in the past 12 months served
as a director of the Company
Sun Huirong a director who left the
Shenzhen MTC Co. Ltd. Company in the past 12 months served
as a director of the Company
Directors supervisors and senior officers of the
Key managers
Company
(V) Related transactions
1. Related transactions of purchase and sale of goods and rendering and acceptance of
services
Purchase of goods/acceptance of services
Amount of Whether
Amount
Details of Amount in transactions the
in
Related party related current approved transaction
previous
transactions period limit is
period
exceeded
Artron Art (Group) Co. Purchase of
9418.50
Ltd. and its subsidiaries goods
Accepting
Shenzhen MTC Co. Ltd. 309121.92
labor services
2. Related-party guarantees
The Company has no related-party guarantees.(VI) Receivables and payables of related parties
1. receivables
Ending book balance of
Project name Related party Ending book balance
previous year
Other receivables Huidong Xiefu 15637433.45 15532630.74
Notes to the Financial Statements Page 86Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending book balance of
Project name Related party Ending book balance
previous year
Total 15637433.45 15532630.74
X. Commitments and contingencies
(I) Commitments
1. Information on guarantees issued as of June 30 2024
The Company applied to China Merchants Bank Co. Ltd. Shenzhen Branch for a performance
bond of RMB 2800000.00 for the Company and its wholly-owned subsidiary Shenzhen Nanshan
Power Environmental Protection Company within the credit line which will expire on March 31
2025.
2. Other commitments
As of June 30 2024 except for the above matters the Company has no other important
commitments required to be disclosed.(II) Contingencies
As of June 30 2024 the Company had no contingencies required to be disclosed.XI. Events after the balance sheet date
(I) Important non-adjusting events
As of the date of the Report the Company has no subsequent events that need to be disclosed.XII. Other important events
(I) 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 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 Integrated
Other Inter-Segment
Item Production and Energy Service Total
Segments Offsetting
Sale Division Segment
Operating
182794785.9618756095.68604525.8014251142.73187904264.71
revenue
Operating
181148653.8611858462.9083278.3812739991.19180350403.95
costs
Notes to the Financial Statements Page 87Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Power Integrated
Other Inter-Segment
Item Production and Energy Service Total
Segments Offsetting
Sale Division Segment
Total
2171009352.02120583899.52349703172.22488622078.222152674345.54
assets
Total
967294084.3048507864.1616383769.56231149437.73801036280.29
liabilities
(II) Others
1. Annuity plan
According to the Company's enterprise annuity plan the Company accrues and pays enterprise
annuities at 8% of employees' wages.XIII. Notes to the main items of the parent company's financial statements
(I) Accounts receivable
1. Disclosure of accounts receivable on an aging basis
Ending balance of
Aging Ending balance
previous year
Within 1 year 58955956.80 26981407.91
Subtotal 58955956.80 26981407.91
Less: provision for bad debts
Total 58955956.80 26981407.91
2. Accounts receivable are classified and disclosed according to the method of provision
for bad debts
Ending balance
Book balance Provision for bad debts
Category
Book value
Ratio Provision
Amount Amount
(%) ratio (%)
Provision for bad debts
on an individual basis
Provision for bad debts
on a credit risk portfolio 58955956.80 100.00 58955956.80
basis
Total 58955956.80 100.00 58955956.80
Notes to the Financial Statements Page 88Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending balance of previous year
Book balance provision for bad debts
Category
book value
Ratio Provision
Amount Amount
(%) ratio (%)
Provision for bad debts
on an individual basis
Provision for bad debts
on a credit risk portfolio 26981407.91 100.00 26981407.91
basis
Total 26981407.91 100.00 26981407.91
(1) Provision for bad debts on a portfolio basis:
Ending balance
Name of portfolios
Provision for bad
Accounts receivable Provision ratio (%)
debts
Portfolio II: receivables
from power production 58955956.80
and sales
Total 58955956.80
3. Accounts receivable and contract assets of the top five ending balances by debtors
Ending balance
Proportion to the
of provision for
total ending
Ending bad debts of
Ending balance of balance of
Ending balance of balance of accounts
Entity name accounts receivable accounts
accounts receivable contract receivable and
and contract assets receivable and
assets provision for
contract assets
contract asset
(%)
impairment
Shenzhen Power
Supply Bureau Co. 58955956.80 58955956.80 100.00
Ltd.Total 58955956.80 58955956.80 100.00
(II) Other receivables
Ending balance of
Item Ending balance
previous year
Notes to the Financial Statements Page 89Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending balance of
Item Ending balance
previous year
Interest receivable
Dividends receivable
Other receivables 700585696.79 714553901.02
Total 700585696.79 714553901.02
1. Other receivables
(1) Disclosure based on aging
Ending balance of
Aging Ending balance
previous year
Within 1 year 697503734.93 711403571.07
1 to 2 years 2500.00
2 to 3 years 2500.00
Over 3 years 29104477.35 29172845.44
Subtotal 726610712.28 740578916.51
Less: provision for bad debts 26025015.49 26025015.49
Total 700585696.79 714553901.02
(2) Disclosure by category
Ending balance
Book balance Provision for bad debts
Category
Book value
Ratio Provision
Amount Amount
(%) ratio (%)
Provision for bad
debts on an 26025015.49 3.58 26025015.49 100.00
individual basis
Provision for bad
debts on a credit 700585696.79 96.42
700585696.79
risk portfolio basis
Total 726610712.28 100.00 26025015.49 100.00 700585696.79
Notes to the Financial Statements Page 90Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending balance of previous year
Book balance Provision for bad debts
Category
Book value
Ratio Provision
Amount Amount
(%) ratio (%)
Provision for bad
debts on an 26025015.49 3.51 26025015.49 100.00
individual basis
Provision for bad
debts on a credit 714553901.02 96.49 714553901.02
risk portfolio basis
Total 740578916.51 100.00 26025015.49 100.00 714553901.02
* Provision for bad debts on an individual basis:
Ending balance of previous year Ending balance
Name Provisio Reasons
Provision for bad Provision for bad
Book balance Book balance n ratio for
debts debts
(%) provision
Huiyang Not
Kangtai 14311626.7 14311626.7 14311626.7 14311626.7 100.0 expected
to be
Industrial 0 0 0 0 0 recovere
Company d
Receivable
s from
Not
employee
100.0 expected
benefit 9969037.63 9969037.63 9969037.63 9969037.63 to be
0
fund recovere
d
dividends
and taxes
Receivable
Not
s from
100.0 expected
purchase of 1736004.16 1736004.16 1736004.16 1736004.16 to be
0
employee recovere
d
dormitories
Not
100.0 expected
Others 8347.00 8347.00 8347.00 8347.00 to be
0 recovere
d
26025015.426025015.426025015.426025015.4100.0
Total
99990
* Provision for bad debts on a portfolio basis
Notes to the Financial Statements Page 91Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Ending balance
Name
Provision for bad
Other receivables Provision ratio (%)
debts
Portfolio IV: current accounts
of related parties within the 698655120.20
consolidation
Portfolio V: guarantee deposit
1473898.05
and petty cash portfolio
Portfolio VII: other
receivables and temporary 456678.54
payments
Total 700585696.79
(3) Classification by nature of payment
Ending book balance of
Nature of payment Ending book balance
previous year
Transactions among related parties within
698655120.20712425641.88
the combination
Other receivables and temporary payments 14648411.55 14645149.15
Receivable from employees 11833282.48 11882548.16
Margin security deposit and petty cash
1473898.051625577.32
portfolio
Subtotal 726610712.28 740578916.51
Less: provision for bad debts 26025015.49 26025015.49
Total 700585696.79 714553901.02
(4) Provision for bad debts
The first The second The third
stage stage stage
Expected Expected
credit loss credit loss
Provision for bad debts Expected over the life over the life Total
credit losses of the of the
over the next instruments instruments
12 months (no credit (credit
impairment impairment
has occurred) has occurred)
Beginning balance 26025015.49 26025015.49
Notes to the Financial Statements Page 92Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
The first The second The third
stage stage stage
Expected Expected
credit loss credit loss
Provision for bad debts Expected over the life over the life Total
credit losses of the of the
over the next instruments instruments
12 months (no credit (credit
impairment impairment
has occurred) has occurred)
Beginning balance in the
current period
- Transfer to the second stage
- Transfer to the third stage
- Reversal to the second stage
- Reversal 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
(5) Centralized fund management
Amounts included in other receivables due to
650964195.46
centralized fund management
The Company centralizedly manages the funds and
the principal and interest of the subsidiary receivable
Situation description
is RMB 650964195.46 and the principal and interest
of the subsidiary payable is RMB 82126419.27.(III) Long-term equity investments
Item Ending balance Ending balance of previous year
Notes to the Financial Statements Page 93Shenzhen Nanshan Power Co. Ltd.For the Year Ended June 30 2024
Notes to the Financial Statements
Provision Provision
Book Book
for Book value for Book value
balance balance
impairment impairment
Investments
in
805895003.07445002245.26360892757.81855811150.92445002245.26410808905.66
subsidiaries
Investments
in
associates 86424569.09 86424569.09 84833842.74 84833842.74
and joint
ventures
Total
892319572.16445002245.26447317326.90940644993.66445002245.26495642748.40
1. Investments in subsidiaries
Provision
Increased for
Decreased Ending balance
Ending balance amount in impairment
Investees amount in the Ending balance of provision for
of previous year the current in the
current period impairment
period current
period
Shenzhen Xiefu
26650000.0026650000.00
Energy Co. Ltd.Shennan Energy
6703800.006703800.00
(Singapore) Co. Ltd.Shenzhen New Power
175637763.0249916147.85125721615.1713709556.49
Industrial Co. Ltd.Shenzhen Nanshan
Power (Zhongshan) 410740001.00 410740001.00 410740000.00
Power Co. Ltd.Shenzhen Nanshan
Power Gas Turbine
Engineering 24460360.00 24460360.00
Technology
(Shenzhen) Co. Ltd.Shenzhen Nanshan
Power Environmental
70191704.8170191704.8120552688.77
Protection (Shenzhen)
Co. Ltd.Zhuhai Hengqin
Zhuozhi Investment
141427522.09141427522.09
Partnership (Limited
Partnership)
Total 855811150.92 49916147.85 805895003.07 445002245.26
Notes to the Financial Statements Page 94Shenzhen Nanshan Power Co. Ltd.Year 2024
Notes to the Financial Statements
2. Investments in associates and joint ventures
Increase and decrease in the current period
Ending Ending
Investment
Ending balance of balance of
profit or loss Adjustments Other Declaration Ending
Investees balance of provision Provision provision
additional Reduced recognized to the other changes of cash balance
previous year for for Others for
investment investment under the comprehensive in dividend or
impairment impairment impairment
equity income equity profits
method
Associates
Liaoyuan 2400426.35 86424569.09
Environmental 84833842.74 809700.00
Protection
2400426.3586424569.09
Subtotal 84833842.74
809700.00
2400426.3586424569.09
Total 84833842.74
809700.00
Notes to the Financial Statements Page 95Shenzhen Nanshan Power Co. Ltd.Year 2024
Notes to the Financial Statements
(IV) Operating revenue and operating costs
Current period Previous period
Item
revenue Cost revenue Cost
Main business 83356643.60 117329074.78 123160499.18 167370297.62
Other business 56683880.98 1356144.85 44602733.18 14977.28
Total 140040524.58 118685219.63 167763232.36 167385274.90
1. Break down by product or service type
Current period Previous period
Item
revenue Cost revenue Cost
Power production and
139947599.59117329074.78167714012.09167370297.62
sale
Others 92924.99 49220.27 14977.28
Total 140040524.58 118685219.63 167763232.36 167385274.90
2. By region
Current period Previous period
Item
revenue Cost revenue Cost
Domestic 140040524.58 118685219.63 167763232.36 167385274.90
Total 140040524.58 118685219.63 167763232.36 167385274.90
3. Revenue broken down by time of transfer of goods or services
Item Current period Previous period
Recognize revenue at a certain time point 140040524.58 167763232.36
Total 140040524.58 167763232.36
Notes to the Financial Statements Page 96Shenzhen Nanshan Power Co. Ltd.Year 2024
Notes to the Financial Statements
(V) Investment income
Item Current period Previous period
Income from long-term equity investments
accounted for equity method under the equity 2400426.35 1308357.00
method
Investment income from financial assets held for
6510401.509342507.91
trading during the holding period
Dividend income received from investments in
68719.76340206.13
equity instruments during the holding period
Dividends from long-term equity investments 6717600.82
Total 8979547.61 17708671.86
XIV. Supplementary information
(I) Statement of non-recurring profit or loss in the current period
Item Amount Remark
Profit or loss on disposal of non-current assets including write-offs of
-108730.90
provision for asset impairment that has been made
Government subsidies included in the current profit or loss except for
those that are closely related to the Company's normal business operations
comply with national policies and regulations are enjoyed according to 439079.24
determined standards and have a sustained impact on the Company's profit
or loss
Except for the effective hedging business related to the Company's normal
operating business profit or loss from changes in fair value of financial
6510401.50
assets and financial liabilities held by non-financial enterprises and profit
or loss arising from the disposal of financial assets and financial liabilities
Fund occupation fees charged to non-financial enterprises included in the
current profit or loss
Profit or loss from entrusting others to invest or manage assets
Profit or loss from external entrusted loans
Loss of assets due to force majeure such as natural disasters
Reversal of provision for impairment of receivables individually tested for
impairment
Notes to the Financial Statements Page 97Shenzhen Nanshan Power Co. Ltd.Year 2024
Notes to the Financial Statements
Item Amount Remark
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
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 from exchange of non-monetary assets
Profit or loss from debt restructuring
One-time expenses incurred by the enterprise due to the fact that the
relevant operating activities are no longer sustainable such as expenses for
relocating employees etc.One-time impact on current profit or loss due to adjustments in laws and
regulations such as taxation and accounting etc.One-time confirmed share-based payments expenses due to cancellation or
modification of equity incentive plan
For cash-settled share-based payments profit or loss arising from fair
value changes of employee compensation payable after the vesting date
Profit or loss from fair value changes of investment properties that are
subsequently measured by using the fair value model
Gains arising from transactions at significantly unfair transaction prices
Profit or loss arising from contingencies unrelated to the Company's
normal business operations
Revenue from custody fees obtained from entrusted operations
Other non-operating revenue and expenses other than the above 75461.40
Other profit or loss items that meet the definition of non-recurring profit or
loss
Subtotal 6916211.24
Less: income tax impact
Changes in the amount of minority interests (after tax) 7264.06
Notes to the Financial Statements Page 98Shenzhen Nanshan Power Co. Ltd.Year 2024
Notes to the Financial Statements
Item Amount Remark
Total 6908947.18
(II) Return on equity and earnings per share
Weighted Earnings per share (RMB)
average rate of
Profit during the reporting period
return on net Basic earnings per Diluted earnings per
assets (%) share share
Net profit attributable to ordinary
-2.63-0.0628-0.0628
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after deducting -3.11 -0.0743 -0.0743
non-recurring profit or loss
Shenzhen Nanshan Power Co. Ltd.(Official seal)
August 23 2024
Notes to the Financial Statements Page 99
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